mortgage: The British are Leaving, The British are Leaving! - 06/24/16 05:15 AM
They did it!  The British voted to exit the European Union (aka Brexit), which many experts predicted was unlikely.  What they also predicted is that if Great Britain did vote to leave, it would throw the global economy into a tailspin and cause stocks to plummet.  And that is exactly what we saw happen in the wee hours of this morning in light of the news the British voted 51.9% to 48.1% to leave the EU.
Ironically, what this means for us in the mortgage business is that such negative news has had a very positive effect on the bond market and, hence, mortgage interest rates. … (0 comments)

mortgage: Bonnie Raitt, Ridgway, and Real Estate. What's the Connection? - 02/21/16 08:22 AM
I think I own almost every Bonnie Raitt album she has ever produced.  I bought my first one back in 1974 when I was a student at UC Santa Barbara, the old black licorice LP type.  I am now patiently waiting for her latest release, which I pre-ordered on iTunes and will play on my iPod or stream to my stereo via Apple TV.  Yes, times (technologies) have changed!  
So, what does Bonnie Raitt have to do with Real Estate? Nothing, really, other than maybe a reminder that in this wonderful and crazy real estate industry in which we work, we need … (2 comments)

mortgage: 5 Credit Myths That May Bite You In The Butt - 02/19/16 04:28 AM
There are many myths and misconceptions about credit, which, unfortunately, too many of my prospective borrowers looking to by a home in the Montrose, Colorado area learn about the hard way--at the time they apply for a loan.  Below are 5 of the most common myths I see.
Myth No. 1.  Having no debts or credit cards makes me creditworthy.  
This is certainly one of the most prevalent.  I see it often with borrowers who went through a financial crises, such as bankruptcy or foreclosure, or who deal in cash because of their cultural upbringing.  The problem with this when you need a … (3 comments)

mortgage: Buy the House before the Car! - 02/16/16 03:22 AM
A common problem I run into when prequalifying a prospective homebuyer for a home loan is the one who just bought a car, or rather, financed its purchase, right before our initial meeting. While the mortgage industry seems to be tightening up, with ever more restrictive regulations and guidelines, it appears the auto financing industry still subscribes to the fog-a-mirror standard, i.e., if they can fog a mirror, they qualify for a car loan. 
Car payments generally represent one of the greatest monthly debts of a borrower and, consequently, significantly increase their debt-to-income ratio (DTI).  DTI is an important factor in qualifying a borrower … (1 comments)

mortgage: Rate Shopping? What You See May Not Be What You Get. - 11/01/14 06:41 AM
Have you ever received an interest rate quote or seen a published rate on the Internet only to find out later that you’re not offered the same rate when you go through the loan application process? That’s because there are many variables in determining rates for individual buyers and the rate you’re offered depends on your own situation.
Usually when you see a published rate quote, it is the rate offered to the most highly qualified borrowers for a particular type of loan for a particular type of property, often referred to as a "best execution" rate.  Those rates are typically … (1 comments)

mortgage: Analyzing Income for Stability and Predictability - 11/01/14 06:28 AM
What a borrower actually earns and what will be used to qualify him or her for a particular loan are not necessarily the same. This is because in addition to calculating how much, the borrower's income must be deemed to be predictable and stable.
The W-2 Wage Earner. The easy case is the W-2 wage earner who receives a consistent base pay, e.g., a monthly or annual salary or an hourly rate based on 40 hours per week, 52 weeks per year.  Pay stubs for the last 30 days showing year-to-date earnings are generally the only documentation required, in addition to … (1 comments)

mortgage: Reflections of a Newbie Lender - 01/04/14 01:14 AM
The start of the New Year is a new beginning for me in many ways, but particularly, since I recently launched a new career, from real estate broker to mortgage loan originator.  I thought I would share a few of the insights I’ve gained during the first two months in the mortgage business.
1.  They didn't teach me this in class! There is SO much more to loan originating than meets the eye or that one ever learns during the licensing class.  I guess that can be said of most professions, but when you start out thinking you already know quite a … (1 comments)

mortgage: Good-bye Real Estate Broker, Hello Mortgage Broker! - 11/24/13 06:08 AM
For those who may have noticed my new contact info and wondered, YES, I've made the switch.  I've gone from the sales side of real estate over to the lending side of it.  I have enjoyed immensely my real estate career.  However, when the opportunity presented itself to me to become a mortgage loan originator (MLO), I simply couldn't ignore it, nor pass it up. 

As you might imagine, one of the biggest questions I've been getting is "why"?!  Well, I'll tell you why.
1.  As the market has slowly been recovering in my area and I saw more people … (2 comments)

mortgage: The New Norm In Home Lending: No Financing Repairs & Personal Property - 02/06/13 02:32 AM
With the housing market on the rise and interest rates still low, there comes a noticeable change in lending practices and policies where seller concessions for repairs  and personal property inclusions are concerned.  A “seller concession” is something the seller agrees to give (concede) to a buyer as part of the real estate purchase.  Most commonly, that is an amount of money the seller agrees to contribute toward the buyer’s loan costs, which can be substantial.  Lenders , for the most part, still allow such concessions.
The problem I experience more often these days is when a Seller offers some kind … (0 comments)