mortgage advice: Home Buying Rules #4: CREDIT - 09/28/18 08:14 AM
As I mentioned in my previous blog  I will be adding to this series to help buyers with there mortgage applications and to better understand the "why?" since the mortgage world can be a very unfamiliar place.  So far we have covered Income, Employment and Assets.
 
Volume 4: Credit
 
While I have written about credit in the past, it doesn't hurt to revisit it for the purposes of this series.  Unfortunately no one teaches about credit as part of a regular curriculum in schools and there is still a lot of bad advice given today.  Here are some quick bullet points:
 
Credit scores range from … (0 comments)

mortgage advice: Home Buying Rules #2 Assets (continued) acceptable sources - 09/12/18 02:43 PM
 
As I mentioned in my previous blog  I will be adding to this series to help buyers with there mortgage applications and to better understand the "why?" since the mortgage world can be a very unfamiliar place.
 
Volume 2:  Assets; Acceptable sources.
 
As I mentioned last time- Cash is high up on the list of NO in the asset world. (99% of the time)
So where can you get money for buying a home?
While Checking and savings are the number one source for down payment and closing costs here are a few that would also be OK
 
Gifts: 
For most traditional financing a gift from a … (1 comments)

mortgage advice: Home Buying Rules (#1) Assets, Cash- Bank Accounts ETC - 09/10/18 01:59 PM
 
I've decided to do a series of Do's and Don'ts- short little snippets to help buyers with their future mortgage applications.
 
Volume 1: Assets.    
 
Seems simple enough, you need money to buy a home. What gets more confusing is documenting it.
The basic way to document assets, and arguably the easiest: 2 months bank statements.
When we (as lenders) request 2 months bank statements and request ALL pages, we really do mean all pages. Think of that bank statement as a legal contract. If it says "Page 1 of 10" we actually need all 10 pages for the past 2 months. EVEN if there is … (0 comments)

mortgage advice: DO NOT Close at the end of the month.... - 07/18/18 10:53 AM
 
There is a misconception in the Real Estate world that it is better to close at the end of the month: It isn’t.
(I could stop right there, but I will explain)
This line of thought comes from odd interest. When you close on a mortgage you will pay interest for the remaining days of the month you close- so that last day you will pay just 1 day’s interest. So on a $250,000 loan if rates are at 5% that would be $34.25/day up to $1,027 for a month.
So yes, it is a little less money at closing at the end of … (10 comments)

mortgage advice: Stop Junk Mail, and AVOID Trigger Leads - 06/08/11 09:26 AM
 

What the heck is a "Trigger Lead"??? 
When a lender runs your credit, the 3 major databases (XPN, TU and EFX) sell your information. This makes your phone ring off the hook with many people that purchased your name. Some of these calls will be more than a nuisance, they can be pushy and I have even had clients that are made to think that they already applied with "brand x".
The bad news is there has been a huge increase in Trigger lead activity in the past few weeks,
But there is something you can do about it moving forward.
 You can OPT OUT:
(32 comments)

mortgage advice: You Can NEVER Under Price your Listing - 01/14/10 06:50 AM
 
We have all had the Three "L's" of Real Estate etched in our minds, With Real Estate it is all about Location Location, Location!
What about price?  There is a "right" Price for EVERY home in EVERY market.  The funny thing is that buyers know what that price is and they will not even look at an over priced home. There are always too many over priced homes in just about every market, Even in a Seller's Market you can have an over priced home.  The only thing the over priced listing does is help sell a well priced listing.
(80 comments)

mortgage advice: 5 steps to protect yourself on Facebook - 10/27/09 06:42 AM
 
Facebook is the world's largest social network. Disregarding this, people share all kinds of information on Facebook without thinking about who's seeing it or what effect their comments and pictures might have on them in the future. One study revealed 30% of employers use Facebook to vet job applicants. Those goofy party pics could cost you more than your dignity! So what can you do to protect your privacy on Facebook? The site itself offers lots of privacy controls and security features. Here are five steps to take to activate them:
1. Create Friend Lists Make a Work list for … (13 comments)

mortgage advice: Economic Calendar: Whats happening with Mortgage Rates July 20, 2009 - 07/20/09 10:38 AM
 
I hope you had a great weekend, I spent this past weekend sailing the Red Grant Regattaout of RYC. It was a great event with 98 boats registered just shy of the goal they set for 100. The event raised thousands of dollars for the Red Cross and will probably be the biggest regatta in NJ this year. You can see Photos of me sailing here. We had A GREAT regatta with 5 bullets in 5 races.
Well, now that you know what I did this weekend you probably want to see whats going on this week in the credit … (4 comments)

mortgage advice: Beware of Forclosure Scams! - 04/07/09 08:43 AM
 
 Beware of Foreclosure Scams.
I was chatting with a few attorneys, mortgage guys and a Fraud investigator this morning and we have all noticed some scams floating around. One big issue is the news and the predators it creates. Most lenders do not have the home affordable guidelines in place. I spoke with 4 loan Officers from different companies today and none of them have the details yet for how Uncle Sam's plan will be implemented, but we all feel we should have details with in a week or two. In the mean time BE CAREFUL!  It is strongly advised … (6 comments)

mortgage advice: FHA loans in 2009, Important things to note - 02/08/09 02:41 AM
 FHA: Qualify more buyers
 I hope you are not steering clear of FHA loans. Now, more than ever, FHA is one of the biggest tools in your loan tool box to qualify your buyers and to get them into a home safely and inexpensively.
There have been some major changes in the past few months to year that you MUST be aware of.
January 1: Down Payment increased to 3.5% down. But the seller can pay ALL closing costs with out changing the down payment as with the old Calculation, and the down payment can still be all gifted. October 2008: … (11 comments)

mortgage advice: We need to value our clients in order to retain them - 11/06/08 06:35 AM
 
Everything we read these days tell us it is a "back to basics market." Press the flesh, be visible, contact your sphere of influence etc.  I would add that you need to constantly strive to improve ourselves. Every thing we do, (failure or success) can be a learning experience
Here is an example of what I just experienced:
This weekend I went to a store, to upgraded my sons cell phone. In the past I have always done this on the phone or on the Internet with Verizon. It has always been a pain free process. But this was my son's money I … (7 comments)

mortgage advice: Yes you CAN still get a loan. - 10/02/08 09:06 AM
 
For the past week or two we have been receiving calls from our clients asking if they are still able to get a loan. These calls have been for clients who are buying homes, are approved and just weeks away from closing.  All of the negative articles and news has consumers running scared and has pushed some of them under rocks, like chicken little... except the Sky is NOT falling!
Most people have heard the bail out plan that has been in the news this week is because credit has dried up and banks are not lending. While this is … (11 comments)

mortgage advice: FHA Down Payment Change January 1, 2009 - 09/24/08 03:58 AM
This one bothers me. It feels "anti FHA".  But it is what we have to look forward to.
On January 1, 2009 the guidelines for FHA Down Payments change.
Currently a buyer can put as little as 2.25% on the typical FHA transaction with the only caveot being a 3% down payment if the seller is paying all of your closing costs.
as of January 1: there is a flat down payment of 3.5%.
That may not sound horrible, but to put a $ number on that it will hurt. on a $250,000 purchase the down payment will have to be … (2 comments)

mortgage advice: Should I lock or Should I float my loan this week August 17, 2008 - 08/17/08 10:58 AM
I am always asked this question, and it isn't always an easy one to answer, especially in today's environment. If you just put contracts in on a house this weekend and you are applying for a loan I would advise that you lock in at the application if you are closing in the next 30 days or so, it will be the safer move... Here is why:
The Market has been in turmoil with investors being overly cautious to invest in anything with the word "mortgage" attached to it.  And it is this pessimism that is leading the movement in the … (5 comments)

mortgage advice: August 17-22 Market news. What is Happening in the Interest Rate Market? - 08/17/08 10:53 AM
What is Happening in the Interest Rate Market?
The Market has been in turmoil with investors being overly cautious to invest in anything with the word "mortgage" attached to it.  And it is this pessimism that is leading the movement in the markets more so than the economic data. The problem is that Mortgage companies rely on Capital to operate, and when investors stop investing in mortgages, capital dries up... Warehouse lenders pull their credit lines from lenders which is equivalent to pushing the lever on the Crapper... A vicious circle that can bring companies to their knees.   The turmoil we … (5 comments)

mortgage advice: Should I Lock, or Should I float - 08/11/08 05:13 AM
 
This Weeks Economic Data August 11, 2008
I am aways asked "where will rates be next week?" Honestly the only answer is "I don't Know"  I can take an educated guess about what is happening in the market and do a quick analysis of the calendar for you to help you make an educated decision when applying for a mortgage:
Here is this weeks forecast and Economic Calendar:
Monday and Tuesday... nothing really going on here as far as market reports go. Wednesday: July Retail Sales Expected to be -0.1% , without Autos the expectations are +0.5%. this number will … (1 comments)

mortgage advice: August 11, 2008 This weeks Market news - 08/11/08 05:08 AM
 
This is yet another week where it will most likely be the World Economy that drives the credit markets. There is a hand full of economic data being released on the calendar this week as well, with the most important information coming towards the end of the week
Monday and Tuesday... nothing really going on here as far as market reports go. Wednesday: July Retail Sales Expected to be -0.1% , without Autos the expectations are +0.5%. this number will pretty much be a non event unless there is a gain of +0.1% or more. With all of the economic … (2 comments)

mortgage advice: What is the Difference between a Pre-Approval and a Pre-Qualification? - 08/04/08 04:33 PM

Jennifer Allan posted a blogand in the comments we discussed the above subject. She asked me to explain the difference between a Pre- Approval or a Pre-Qualification. I know there has been a lot of chat in the rain about deals falling apart in underwriting etc... I have posted a few blogs about  the very subject here, and here.
Honestly a good pre-qual is as good as any pre approval, and better than a bad preapproval for sure! Here is my quick explanation of the two.. Which I have turned into THREE:

Pre-approval: Should be a fully underwritten file … (65 comments)

mortgage advice: This weeks economic forecast and Economic Data 7/28/2008 - 07/28/08 01:58 AM
Weekly Economic Report
 
This weeks calendar starts off slow and ends up with the "Biggie of the Week"
Monday 28: No report Tuesday 29th: Consumer Confidence. Estimate is for 50.0, A reading below will support lower rates, a Reading above 50.4 may nudge rates higher. Investors usually are more interested in what the Consumer is doing, than how they say they are feeling... not an important number. Tuesday 29th: My Sons Birth Day! Should I get him a Wii? Wednesday 30th: No data to report Thursday 31st: 1 estimate of second Quarter GDP estimate is up 2%. Not likely to … (6 comments)

mortgage advice: You just applied, Should you lock or float? This weeks Forecast July 21, 2008 - 07/21/08 08:05 AM
 July 21, 2008
The Economic Calendar is a busy one this week, but there is not one piece of data that is expected to move the market. If you wrote a contract over the weekend you may be asking, should I float or should I lock? This information should help you make that decision:
Today: we had LEI which was in line with expectations Tuesday 22nd Treasury Auction of 20 yr indexed securities Wednesday 23rd, Treasure Auctions 2 year notes Wed, The Fed release the Beige Book, it is a compilation of data from across the country expected to show sluggish … (2 comments)

 
Robert Rauf (CMG Home Loans)

Robert Rauf

Toms River, NJ

More about me…

CMG Home Loans

Address: 9 Grand Ave, Building 2 Suite A, Toms River, NJ , 08753

Office: 732-908-4868

Mobile: 732-740-0175

The mortgage market is ever changing, do not be afraid to ask what is new!


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