One area that can be a big help to your clients getting approved is paying their rent in a way that is document-able. For example: if your client has a Credit Score under 580 and is applying for an FHA loan having 12 months, documenting their rent being paid on time is a must. Also, if you have a client with a Credit Score between 580-640, it is also a must to have 12 months proof of rent or housing expense being paid. Cash is not an acceptable form of documentation because it … (2 comments)
I think seller concessions or seller contributions is an awful term, as it is so misleading. We all know there is nothing free in life! At least not free in a home sale/buy transaction. Seller concessions are essentially buyer financed closing costs/prepaid items. They are used when a borrower either does not have enough money to pay for their closing costs out of pocket or when they would rather keep their cash on hand and finance the closing costs into their loan. I am seeing seller concessions used … (6 comments)
I met Jennifer at my office one Saturday morning to help her get pre-approved. One look at her finances and I knew this was not going to be a cookie cutter transaction. For starters she was on the deed to her current residence, but the NOTE was in her boyfriend’s name. She had been claiming the interest deduction on her tax returns though she is not the rightful recipient of this deduction. Secondly, she owned a rental property that her brother rented from her. However, she did not claim a schedule E … (8 comments)
One specific example: I helped Sarah back in November of 2013 get pre-approved for a construction loan. I began her and husband’s mortgage application for a 5% down, no PMI loan to purchase a new construction home. The home was going to be completed and ready to close on November 1, 2014. I had their loan approved by the underwriter, title completed, and the appraisal done. Last week, she called me after hearing about a local Credit … (9 comments)
mortgages: How to Raise Your Score! Part THREE!
- 09/17/14 12:47 AM
Credit Scores play a vital role in the homebuying process. Do you know if your credit report is reporting accurately? Are there tax liens or judgements against you that shouldn't be there? There is (usually) always a way to fix that! In fact, I helped a client last week raise their score 60 points in 72 HOURS! Check it out: … (5 comments)
mortgages: Credit Scores: How to raise yours! Pt. 2
- 09/15/14 07:57 AM
Sometimes it seems like credit is a game. You have to know how to play to increase your score, and to keep it high! Let me share a tip with you.
… (1 comments)
mortgages: I Can Get a Free Credit Report?
- 09/10/14 09:47 AM
Credit Scores DO matter Do you know what yours is? Did you know you can pull a free Credit Report for yourself? Check out how in my video below and give me a call if you have any questions!
That is the one frustration I hear form every person I’ve ever known who has gotten a mortgage before in some form or fashion.
After hearing this concern over and over I decided it's time to do something about this. To create a smoother sailing process for everyone. So, during my pre-approval process, I give every client a detailed checklist that I've created. This begins preparing them for their mortgage application.
Why wait until the day you sign the contract to prepared?
I grew up on my dad’s saying, “success is what … (7 comments)
In the last week I was referred 4 borrower’s that were turned down by their local bank, credit union, or mortgage banker. One specifically was Carl. Carl was turned down the day before closing because he missed a late payment on his credit card and his credit score dropped below 640, which was their minimum required credit score. He was in a panic. He had already paid for appraisal and inspections and his lease was not renewed on his apartment where his family lived.
His Realtor gave me a call and explained the situation. Thankfully, as a … (4 comments)
My dad taught me this and it has made a world of difference. Most of us spend a lot of time doing the things that are easiest, but least productive. We learn to work smarter and not harder partly by following this saying.
I use a to-do list everyday. Everyday. I live and die by it during the work week. It has three columns A, B, and C. Simple enough. Right? A is for most important, B is for moderately important, and C is for not important. I actually categorize … (3 comments)
I recently realized how much of a slave I had become to my email and my phone. I hated that I felt controlled to check my email immediately upon waking up and at every other waking minute of the day. My wife would constantly get on me about being on the “screens” (computer, smart phone, and tablet) at the dinner table and not paying attention to my two toddlers. Being a slave to technology was not on my top 10 life goals.
Have you ever felt this way?
I decided something had … (4 comments)
mortgages: What To Do When Your Appraisal Comes In Short
- 06/02/14 07:57 AM
What To Do When Your Appraisal Comes In Short Jamie was referred to me a handful of months ago. She was afraid that she wouldn't qualify due to her rocky credit history. She had was in the middle of "Credit Consumer Counseling" that was helping her get back on the right track financially. She had some late mortgage payments in the past and other factors that made her skeptical of being able to obtain financing to purchase a home. After pre-approving her, she found a home and applied for an FHA mortgage. Only a few banks will accept a borrower that … (27 comments)
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