mortgage loan: NO PRIVATE MORTGAGE INSURANCE (PMI) LOANS
- 04/27/23 12:08 PM
NO PRIVATE MORTGAGE INSURANCE (PMI) LOANS
I'm sitting here in my office listening to a radio ad play multiple times regarding "no private mortgage insurance loans". Homebuyers have learned to hate PMI insurance. When a lender is offering NO PMI insurance, it gets their attention.
Typically when a lender is offering NO PMI insurance it is a good idea to do a comparison to a loan with PMI insurance. The loan without PMI insurance can be offered as LPMI (lender paid private mortgage insurance).
I can offer a homebuyer a mortgage loan with and without PMI insurance. The loan without PMI insurance has a … (0 comments)
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mortgage loan: Why Borrowers Get Spam After Their Credit Is Pulled
- 07/10/20 09:26 AM
Why Borrowers Get Spam After Their Credit Is Pulled
A borrower needs a mortgage to purchase a home. They contact the mortgage broker or bank they want to work with, apply for a mortgage loan, have their credit pulled, and boom! they start getting spam calls out of the blue asking if they are buying a home. Why? Why are they getting calls from people they have never heard of? How did these folks get their information?
What I described above is a "trigger lead". When someone applies for a mortgage loan and their credit gets pulled their information is often sold to … (3 comments)
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mortgage loan: Getting Organized For a Mortgage Loan
- 02/24/20 12:43 PM
Getting Organized For a Mortgage Loan
Thinking of applying for a home mortgage? Organizing the information required is necessary. I take a lot of applications by phone and we work through the necessary data right there and then on the phone. If the applicant has not already organized their information for a home mortgage, then starting immediately following the application is not too soon.
Some typical documents one may need are pay stubs, W-2's, bank statements, along with photo I.D. Different loans need differing data, for instance for a refinance a copy of the last couple of statements from the current mortgagee may be … (1 comments)
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mortgage loan: WEEKEND LOAN APPROVAL
- 05/28/19 08:18 AM
WEEKEND LOAN APPROVALS, especially over a holiday weekend are special! One advantage of working with me on a home mortgage is speed. One of my lenders works from early morning to late at night and they don't quit over the weekend. This is a huge advantage in getting mortgage loans closed not only on time but early!
The loan I received approval on in this case was submitted late on Thursday. I love getting loans ready to close ahead of schedule. All parties may want to close early; for sure borrowers want to get their facts and figures ahead of time. This makes … (0 comments)
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mortgage loan: BUYING A HOME - CASH IS NOT KING
- 03/27/19 09:24 AM
BUYING A HOME - CASH IS NOT KING
Okay, if you are paying actual CASH for a property, yes, maybe, cash can be king. However, if you are buying a home using a mortgage loan cash is NOT king. I'm talking about literal cash here, the kind you just have laying around the house.
Part of the home mortgage loan process is documenting funds that are used for down payment or closing.
There are established rules about what is acceptable.
All the rules I'm not covering here, that would be too complex. One thing that is not acceptable is to show up at closing with … (0 comments)
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mortgage loan: Some Tips About Credit Before You Apply For A Mortgage Loan
- 02/14/19 11:51 AM
Some Tips About Credit Before You Apply For A Mortgage Loan
Here are some tips about credit that can and should be considered before applying for a home mortgage. I talk to a good many folks who want to buy a home who have either have applied for a home loan and ran into an obstacle, or they just want to be prepared.
Why is your credit score when you apply for a home loan so important? It is important in that some programs require a minimum credit score to qualify and your score can affect the rate you ultimately receive.
Every situation is different … (1 comments)
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mortgage loan: Prepare To Buy A Home With A Home Buying Class
- 01/24/19 07:58 AM
Prepare To Buy A Home With A Home Buying Class
Be in the know when you are buying a home by taking a home buying class. I talk to folks every day who are surprised at what they don't know about buying a home. When buying a home your goal is finding the home but also being knowledgeable about the process itself, being aware of what is expected of you, having the best credit score possible, knowing your limitations, knowing what will affect your ability to buy. These things among so many more are things you will learn from a home buying … (0 comments)
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mortgage loan: SHOULD YOU CO-SIGN A LOAN?
- 08/24/18 08:34 AM
SHOULD YOU CO-SIGN A LOAN?
In the mortgage lending business we often discover when pulling credit that an applicant has co-signed a loan for another party. Most often that is for a close family relative, sometimes it is for a friend. When co-signing a loan many co-signors get it wrong in that they simply think they are lending their credit score or history to get another party a loan. They rarely consider the fact they are obligated to make the payments in the event the borrower does not.
The facts are that if one agrees to co-sign a loan they are agreeing to allow a lender … (3 comments)
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mortgage loan: I CAN'T IMAGINE DOING IT WITHOUT YOU.
- 09/05/17 08:43 AM
I CAN'T IMAGINE DOING IT WITHOUT YOU.
That is what I heard from a buyer I recently helped with a mortgage loan for his first time home purchase. All transactions make us feel really good when they are finished and our client is happy. We always get a thank you, a hug, a happy smile.
I closed a mortgage loan last week with a buyer who sat through my home buyer class a few weeks ago. We texted, a lot, during the three weeks or so we worked on his file together. He did everything he was supposed to do to make the process … (1 comments)
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mortgage loan: DOES YOUR HOME QUALIFY FOR AN APPRAISAL WAIVER?
- 08/24/17 10:33 AM
DOES YOUR HOME QUALIFY FOR AN APPRAISAL WAIVER?
What is an appraisal waiver?? An appraisal waiver is when the lender is not requiring an appraisal be done on your property before making a mortgage loan to you.
Benefits of an appraisal waiver: Clearly a big one is you get to save the money for the appraisal. Along with that savings (at least $495) you also get to save the time lag in obtaining that appraisal. There was a time when appraisals were running 2 weeks plus in the Kentucky market. Lead times have improved but not needing an appraisal is a great benefit … (2 comments)
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mortgage loan: DON'T QUIT YOUR JOB!!!
- 11/28/16 06:59 AM
DON'T QUIT YOUR JOB!!!
One of the last things a mortgage lender will do is verify if the parties to the mortgage loan are still employed. This takes place at the end of the loan approval and before closing takes place. So, don't quit your job if you want to close on your home purchase or refinance.
Can one change jobs during the mortgage loan process and still get a loan? Possibly, but questions arise because the primary purpose of verifying employment is the ability to repay a mortgage loan. During the loan approval process a lender collects data regarding employment that they … (0 comments)
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mortgage loan: WHY DOES UNDERWRITING NEED THAT?
- 10/19/16 04:10 AM
WHY DOES UNDERWRITING NEED THAT?
For those of us who have been in the business for a long time we've run into this question "why does underwriting need that?" many times.
When someone is pursuing a mortgage loan the lender will provide the documents in the file to an underwriter for approval. Underwriters spend a good deal of time training and many have been in the business for a very long time.
The underwriters are responsible to follow the guidelines determined by the loan being considered. They are also responsible to themselves in that if they make enough mistakes they can lose their job, their … (4 comments)
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mortgage loan: WHAT IS APR?
- 03/28/15 01:19 AM
WHAT IS APR?
What is APR and why should your care? When shopping for a home mortgage you SHOULD see not only an interest rate but an APR rate. The APR has historically been confusing, often because even the person trying to tell you what it is doesn't know. One of my co workers a few years ago said a friend of his explained to folks it was the "average person's rate". Needless to say, that guy was of no help.
APR (AVERAGE PERCENTAGE RATE) is the cost of getting the loan. Included in the cost of a loan may … (0 comments)
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mortgage loan: CAN I STILL GET A SUB PRIME MORTGAGE LOAN?
- 08/01/14 02:18 AM
CAN I STILL GET A SUB PRIME MORGAGE LOAN?
Are there still sub prime loans available? Over the last few years the mortgage lending field has changed a lot. Recently the "qualified mortgage" has been analyzed and implemented.
The CFPB set new guidelines for a qualified mortgage, ability to repay, loan originator compensation and a host of other rules that affect mortgage lending. (Interesting enough one of the directors who spearheaded this move has now left the CFPB to run a company offering loans that are not qualified mortgages.)
For some folks sub prime mortgage loans are the only answer … (2 comments)
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mortgage loan: MORTGAGE LOAN SHOPPING GLITZ AND GLAMOUR
- 05/30/14 12:53 AM
MORTGAGE LOAN SHOPPING GLITZ AND GLAMOUR
When shopping for a home mortgage loan how easy is it to fall for glitz and glamour?
I've been in my industry for quite some time now and I have seen companies come and go. More particularly I've seen loan officers who went beyond the bus stop benches to billboards. Catchy phrases, outlandish promises and sky high egos. As I'm typing this morning I wonder... what ever happened to these guys?
I was checking out a competitor today and saw average closing times 14 days, loan declines less than 1.5%. The boasting is there to draw … (0 comments)
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mortgage loan: FHA MI CHANGES JUNE 2013 BUYER BEWARE
- 04/29/13 11:53 PM
FHA MI CHANGES JUNE 2013 BUYER BEWARE
JUNE 3, 2013 will bring big changes to FHA. Real estate agents and home buyers need to be aware of how the changes in FHA will impact a home purchase. FHA for a long time has been a go to loan program for first time home buyers in particular. Higher debt to income, lower credit scores and higher loan to value loans, plus the fact down payment funds may be a gift or grant all are reasons to look at FHA.
In the past the fact FHA had an up front mortgage insurance … (2 comments)
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mortgage loan: Getting Prequalified for a Mortgage Loan is a MUST!
- 11/07/11 04:23 AM
Getting Pre qualified for a Mortgage Loan is a MUST!
My past customers call me when they are ready for a new mortgage loan, or if they want to refinance their current mortgage loan. Most of them have been trained by me to take the informed route. The more they know, the easier it is to make a very important decision.
I often get calls from potential home buyers who want to get pre qualified for a mortgage loan. The bad part is when one of these callers has already looked at a home, and in some cases several homes. I'm talking to … (2 comments)
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mortgage loan: MORTGAGE LOAN CHANGES IN POUNDS AND INCHES
- 10/28/11 07:41 AM
MORTGAGE LOAN CHANGES IN POUNDS AND INCHES
I just closed a mortgage loan for a couple with whom I've worked in the past on financing their home. The last time we did a mortgage loan together was in 2009 before all the new "rules" of the Federal Reserve and Dodd Frank came to be.
The borrower has occupied his home for seven years. He and his wife both have 20 years plus in their careers. The equity in the home is more than 20%. They have plenty of assets. Their debt ratio is about 15%. Credit scores in the … (3 comments)
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mortgage loan: IS IT WORTH IT TO PAY POINTS ON A MORTGAGE LOAN?
- 06/20/11 08:38 AM
IS IT WORTH IT TO PAY POINTS ON A MORTGAGE LOAN?
WHAT ARE POINTS?
Points can be classified as an origination fee or discount points. Depending upon how good the mortgage loan originator is in explaining the costs and fees, it can be unclear as to what a borrower is being charged points for.
Points are money - whether you pay in cash or finance them.
WHY ARE POINTS CHARGED?
Points can be charged to improve an interest rate (buydown) or to cover other costs associated with the loan program.
THE FIRST STEP IS TO DETERMINE WHAT THE POINTS … (0 comments)
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mortgage loan: APRIL FOOL'S JOKE?
- 02/01/11 04:00 AM
APRIL FOOL'S JOKE? On April 1st the Federal Rule regarding Loan Officer Compensation goes into effect. In a nutshell this means that loan originator needs to negotiate his/her income with his/her lender and it cannot change from loan to loan.
In the past originators have had the ability to pick up some of the costs for the borrower from the income paid to him by the lender. For instance if the originator was going to make $2000 on a loan, they could opt to give the borrower a $500 credit. In some instances the borrower could pay a slightly higher interest rate and get … (0 comments)
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NO PRIVATE MORTGAGE INSURANCE (PMI) LOANS
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