mortgage: The proper use of forbearance
- 04/22/20 08:48 AM
We get it, these are challenging time, with stay at home ordfers, reduction in hours, and job loss, making your house payment can be a challenge for many people.
As part of the CARE ACT, the government has forced lenders to offer forbearance to anyone who asks WITHOUT requiring proof of hardship. A better understanding of forbearance would be to say "short term pause."
Both lenders and the National Association of Realtors are working diligently to educate people on proper uses of forbearance. (See NAR’s recent FAQ)
Forbearance should only be used by homeowners who are genuinely in distress and cannot afford to make … (0 comments)
|
mortgage: The Pre-Approval Advantage
- 11/26/19 01:08 PM
Why should I be pre-approved for a mortgage loan?
Minneapolis, MN: In recent years, mortgage guidelines were tightened. Documentation requirements have been expanded and followed more closely. A pre-approval gets you through the initial process and uncovers any potential pitfalls long before you become obligated by a contract to purchase.
What Advantages will I have once pre-approved?
You'' be certain about the price range that's best for you. You'll know how much cash you'll need to close, and you'll know your estimated monthly payment. Understanding your limits will help you negotiate with confidence. Plus, since sellers like a sure thing, you'll have an advantage … (0 comments)
|
mortgage: The Digital Mortgage Hype
- 07/18/18 03:44 PM
The Digital Mortgage Hype
It is 2018. The number of people who physically step into a bank or mortgage lender to do a home loan application is dwindling everyday. The vast majority of people now complete an online loan application on a desktop computer, iPad, or even apply via a Smartphone.
Technology allows lenders to do more parts of the process electronically that ever before, including electronically signing your application documents, secure uploading of your documents, and even apps that let you check the current status of your application 24/7.
Very cool technology, with this process now commonly referred to as a 'Digital Mortgage'.
I … (0 comments)
|
mortgage: Bank statement mortgage loan programs in MN, WI, SD
- 06/07/18 10:57 AM
Minneapolis, MN: Not every potential home owner fits the cookie cutter guidelines of most traditional loans, especially the self-employed person. The mortgage industry had plenty of alternative options for self employed right up until the housing crash in 2007, including bank statement loans, stated income loans, and no proof of income loans.
Government mandated changes to the mortgage industry after the crash killed most of those programs, leaving some people with no loan options whatsoever.
Fast forward to today, and slowly the non-conforming loan industry, now called Non-QM loans, is making a comeback, albeit looking much different than years ago.
True stated income loans, … (1 comments)
|
mortgage: The Closing Costs are 3% myth
- 02/07/18 08:14 AM
The closing costs are 3% myth debunked I just heard it again, a Real Estate Agent saying average closing costs to obtain a home mortgage loan are about 3%.
This simply is way too broad a statement about actual closing costs.
As an actual Minnesota mortgage lender for the past 26-Years, the perception that mortgage loan closing cost are about 3% has NEVER been really accurate. I believe this gets spread around primarily because a conventional loan only allows for seller paid closing costs of 3% ( FHA Loan is 6%: VA Loan is 4%, convention is 6% with a large down payment ).
About 1/2 … (1 comments)
|
mortgage: Oops, I have collections on my credit report
- 08/03/17 10:46 AM
Minneapolis, MN: No one likes having dings on their credit report, but let's face it, sometimes it is impossible to avoid. When credit dings happen, it is important to work on getting back into the credit good graces, as it effect so many things in your life, from ability to get a mortgage loan, the interest rate you pay on mortgage, credit cards, car loans, and even you paying more for your car insurance.
Next to basic late payments, small collection accounts are some of the most common negative item we see on credit reports. We see a lot for medical items, … (2 comments)
|
mortgage: How long does credit repair take?
- 10/18/16 03:30 AM
How long does credit repair take?
Minneapolis, MN: As a mortgage loan officer, how long does credit repair take is a question I receive multiple times a week. The fast answer is that it depends.
No two credit profiles are the same, therefore for one person, it can be pretty quick, while the next person, it can take a significant amount of time. So a generic how long does credit repair take answer is impossible.
What is pulling down credit? Bankruptcies and foreclosures, collection items, judgements, incorrect items, max'd out credit cards, or just a slow payment history? All of these effect credit differently.
Paying … (3 comments)
|
mortgage: How long does it take to close a mortgage loan?
- 02/29/16 01:52 AM
Getting a home mortgage loan in today's world is a cumbersome paperwork intensive process. Especially with all the recent regulatory changes added since the market crash.
Not everyone realizes how long the process takes, but this is good information to understand when setting proper expectations for closing dates.
A large portion of mortgage lenders use the same software from Ellie Mae. Through this software, they are able to track the entire process, providing great industry insights.
According to the December 2014 Origination Insight Report from Ellie Mae, the average time to close a loan in 2015 took 49 days.
The average time to close a refinance … (1 comments)
|
mortgage: Beware of automated mortgage pre-approval sites
- 10/16/15 05:30 AM
It's 2015. I understand the daily advancements on computers, technology, and convenience. Popping up all over are sites that that claim the ability to "allows home shoppers to get pre-approved quickly and easily." Instant pre-approval sounds cool.
But when it comes to home buying, potential home owners should be extremely wary of trusting any web site offering automated mortgage pre-approval tools.
The Traditional Mortgage Loan ProcessThe traditional process is you complete a loan application. A real live person reviews the information, talks to you about your situation, uses knowledge and expertise to explore all avenues and issues. Then your file is run through … (1 comments)
|
mortgage: The Importance Of Full Lender Pre-Approval
- 07/13/15 01:00 AM
The Importance Of Full Lender Pre-Approval
Minneapolis, MN: Initial mortgage loan pre-qualification and full lender pre-approval are two of the most important steps you can take towards owning a new home. In most areas, Real Estate Agents either won't even show you homes, or for sure, will not let you make an offer on a home without a full lender pre-approval.
Basic Pre-QualificationPre-qualification is the first step to securing a home loan. Essentially, it is an initial "how do you look", and "feels good" start. Pre-qualification is quick and involves completing a mortgage application, answering only a few questions about your income, … (0 comments)
|
mortgage: The End of Pre-Approval Letters?
- 03/16/15 05:43 AM
The Consumer Financial Protection Bureau (CFPB), in another of their seems to make sense to a bunch of bureaucrats, but doesn't make real life sense on the streets move, are about to cause more pain and headache to the real estate industry.
Watch this video for all the stupid details.
New rules and disclosures coming August 1, 2015. Are you ready?
----------------
Joe Metzler is a Senior Mortgage Loan Officer for Minnesota based Mortgages Unlimited. He was named the 2014 Minnesota Loan Officer of the Year, and provides Home Mortgage Loans in MN, WI, and SD. He can be … (1 comments)
|
mortgage: Waiting period rules after short sale, bankruptcy, or foreclosure
- 08/01/14 11:03 PM
Minneapolis, MN: As a mortgage Loan Officer, it seems I am asked what the rules are for getting a new mortgage loan after having a bankrutcy, foreclosure, or short sale about 100 times a week.
Therefore I have made, and update as needed, a comprehensive list of each of their guidelines for quick and easy reference. Bookmark, make as a favorite for yourself, or feel free to link to your personal web site to help your clients know the rules.
http://joemetzler.com/waiting-period-after-foreclosure-short-sale-or-bankruptcy.htm
Almost all mortgage loans in this country are underwritten based on Fannie Mae, Freddie Mac, FHA, VA and USDA guidelines, … (1 comments)
|
mortgage: Know the difference of mortgage pre-qualify versus pre-approval
- 07/03/14 12:23 AM
Mortgage Pre-Qualification versus Mortgage Pre-Approval Getting an initial Mortgage Pre-Approval BEFORE you speak with a Real Estate Agent just makes sense.
A good first step is to complete the online application, or speak with a Mortgages Unlimited loan officer who will help you determine what loan programs are available to you, how much home you can afford, what the payments might look like, and how much money you'll need to make it all work. This will ensure that you begin your search as an educated buyer, and can talk confidently with your Real Estate Agent about an appropriate home search.
… (0 comments)
|
mortgage: Reaffirmation after bankruptcy not required to refinance
- 02/06/14 01:34 AM
Q: Do you have to reaffirm your mortgage with a bankruptcy to refinance the mortgage loan today? Minneapolis, MN: I hear this question on a fairly regular basis, and the plain and simple answer is NO.
You DO NOT need to reaffirm a mortgage loan that was in a bankruptcy to refinance that loan today. Anyone telling you otherwise is 1000% wrong.
If you did not reaffirm your mortgage during your bankruptcy, the mortgage did not disappear. It is still a lien on your house. It is still owed and must be paid unless you are willing to risk losing the … (1 comments)
|
mortgage: 2014 Mortgage Interest Rate Forecast
- 01/22/14 11:16 PM
Minneapolis, MN: It has come that time of year again where I make my mortgage interest rate prediction for the coming year. My long range forecast is based on multiple indexes, theories, past industry experience, and a little bit of guessing.
The bulk of the weight this year goes towards the continuing reduction in the easing of the current Federal Reserve bond buying program, which started this month. If the economy falters, and the Fed delays their easing, the anticipated increase in rates could be pushed back.
Below is my prediction for the average 30-year conventional fixed rate mortgage loan:
Click … (1 comments)
|
mortgage: What you should know BEFORE buying a house
- 11/20/13 11:59 PM
What should I know before buying a home Here are some tips that could save you a lot of time, money and trouble. Especially if this is your first home.
Plan ahead. Make sure you have good credit and save as much as you can for the down payment and closing costs. Get fully pre-approved before you start looking. Real estate agents prefer working with pre-qualified buyers, plus you will have more negotiating power and an edge over homebuyers who are not pre-approved. Get a REALISTIC housing budget and stick to it. Talk to your Loan Officer about debt-to-income ratios, … (2 comments)
|
mortgage: HARP Refinance program. Still working for thousands of homeowners
- 10/21/13 12:08 AM
Minneapolis, MN: As many are aware, mortgage interest rates jumped up about 1% back in May 2013 from their historic lows. Those holding out for even lower rates at the time, those who thought they wouldn't qualify, or those simply not paying attention to the market lost out on a great opportunity.
Since then, mortgage rates have recovered about about 1/2%. While it isn't the absolute rock bottom, it is pretty darn close, making refinancing your mortgage something attraction once again to many homeowners.
HARP News / Home Affordable Refinance program | October 2013
Significant enhancements have made HARP more … (0 comments)
|
mortgage: Are you really Pre-Approved to buy a home? How to tell.
- 10/03/13 06:53 AM
Minneapolis, MN: Seems like every week I get a new client, who has been working with another lender, and suddenly, their mortgage application was denied very close to closing. A common statement they make is, how can that be, I was Pre-Approved?"
THE APPROVAL PROCESS
So are you really approved? The answer is yes and no. Under the standard procedure most lenders follow is that the loan officer takes an application. Next the loan officer should pull credit. This should give the lender a good preview of the potential final outcome. Many lenders will give a pre-approval letter at this point, … (1 comments)
|
mortgage: Mortgage Forgiveness Debt Relief Act Extended
- 01/03/13 03:14 AM
Minneapolis, MN: When debt is relieved or written off... That "relief" is supposed to be taxed as income. The lender gives the debtor a Form 1009-C, Cancellation of Debt if the cancellation equals $600 or more. When it comes to a foreclosure or abandonment of secured property, it is a form 1099-A.
That means if someone owes $150,000 on their home and it sells for $100,000 in a foreclosure auction, they could owe taxes on the remaining $50,000. For someone in the 25% tax bracket, that would mean paying $12,500 in taxes on the foreclosure. Similar taxes would apply for amounts … (1 comments)
|
mortgage: Are you a serial refinancer?
- 12/21/12 03:21 AM
Are you a serial refinancer? Minneapolis, MN: As mortgage interest rates drop, many people believe that no cost loans, and refinancing multiples times is a game winning strategy. People who do this are known as "serial refinancers."
A Wall Street Journal report shows about 2.2 million people have refinance their current home loan at least twice since 2009.
All loans have closing costs, so an important aspect to refinancing is the question, "is their a benefit?" Refinancing generally is down to obtain a lower mortgage interest rate, and hence, a lower mortgage payment. Some people also lower their term, going from … (1 comments)
|
|
|
|
We get it, these are challenging time, with stay at home ordfers, reduction in hours, and job loss, making your house payment can be a challenge for many people.
;)
;)
;)
