Tag: <span>Loan</span>

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IS IT STILL A GOOD TIME TO BUY OR REFINANCE A HOME?

“Is now a good time for buying or refinancing a home?”, continues to be one of the most frequently asked questions we hear. When should you start planning for your mortgage? The answer is as soon as you think you will be buying or refinancing a home. Mortgage planning includes analyzing your credit and income...

HAVE YOU PRE-QUALIFIED FOR A LOAN?
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HAVE YOU PRE-QUALIFIED FOR A LOAN?

    In order to put an offer on a home, you will likely have to present a letter stating you are pre-qualified for the loan. What do you need to do to get pre-qualified? The first step is to complete a loan application; the application will give the loan originator the information they need...

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SUSPENSION DOES NOT MEAN DENIED

A loan suspension means the loan package submitted to the lender does not meet guidelines. The file is suspended to give the borrower time to provide documentation to bring the file within guidelines. For instance, a suspension may be issued if the debt-to-income ratio is too high. The underwriter may ask for further income and...

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LOAN APPROVAL:  IT’S NOT THAT PERSONAL

Years ago, when our parents and grandparents went to the local bank to get a loan, they would meet with a banker who they likely knew.  The banker would consider many factors, including their personal relationship, in determining whether to approve the loan. This is not the case today. Today, it is about the saleability of the loan.

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THE LOAN ESTIMATE

The Loan Estimate (“LE”) is a document provided to you by the lender within 3 days of the application date.  The application date is the date when the following have been provided to the lender:

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UNDERWRITING A LOAN

When underwriting a loan lenders look at the debt-to-income ratio for a comparison of monthly debts to monthly income, this is a major factor lenders consider. Lenders like to see the ratio at or below 43%, but loans have been approved up to 50%. Example: Let’s say you are salaried and gross $4,000 per month;...

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DO YOU HAVE THE RIGHT LENDING SOURCE?

Are you looking to buy an apartment building or a multi-unit property? Or a business and the building it operates out of, such as a restaurant or a gas station? Do you need help financing this purchase? Who would you go to? Would you ask a friend? Would you go to your local bank? Did...

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DO YOU WANT TO LOWER MONTHLY PAYMENTS, NOT THE TERM?

Typically,​ ​when​ ​you​ ​make​ ​a​ ​large​ ​principal​ ​payment​ ​on​ ​your​ ​loan,​ ​the​ ​monthly​ ​payment​ ​remains the​ ​same,​ ​but​ ​the​ ​term​ ​of​ ​the​ ​loan​ ​shortens.​ ​​ ​However,​ ​if​ ​you​ ​wish​ ​to​ ​lower​ ​the​ ​monthly​ ​payment instead​ ​of​ ​shortening​ ​the​ ​term,​ ​ask​ ​the​ ​lender​ ​if​ ​they​ ​allow​ ​a​ ​recast.​ ​​ ​A​ ​recast​ ​is​ ​where​ ​a​ ​large principal​...

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SELF-EMPLOYMENT AND LOAN QUALIFICATION

After the mortgage crisis, there was a perception that self-employed individuals could not get loans; this was plain wrong. If you were self-employed, you could get a loan but the lenders looked at your net income, not your gross income to qualify; the same holds true today. However, if you write off all of your...

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LENDER APPROVAL: DEBT-TO-INCOME RATIO

You may have heard of this term when applying for a loan; what does it mean? Debt-to-Income ratio is a comparison of monthly debts to monthly income, this is a major factor lenders consider when underwriting a loan. Lenders like to see the ratio at or below 43%, but loans have been approved up to...