buying a home: Reader Questions | The Consumer Explanation Letter
- 05/06/15 11:29 PM
I’ve received several questions from readers just this week on one mortgage document: the consumer explanation letter. Most of them are just plain annoyed with having to complete this document and don’t understand how to complete it. The consumer explanation letter prints at the end of your credit report and has five different sections: derogatory accounts, public records, addresses, inquiries, and name variations. Each of these sections contains items from your credit history for which the mortgage lender requires an explanation. Derogatory AccountsIf you have any late payments or collections, they will show in this section. The document asks you for an explanation and an outcome … (1 comments)
buying a home: Your Lender Can Give You the Upper Hand in a Multiple Offer Situation
- 07/30/14 10:42 PM
A Realtor recently asked why I will not issue a pre-approval letter before I have received all the supporting documentation. She was curious as she works with a few different lenders and some require this and some do not. I explained to the Realtor that most of the time you are probably fine only pulling a tri-merged credit report and taking a really good loan application over the phone or in person. However, there’s always a chance that a borrower’s pay stubs do not line up with their account of their income or their bank statements reveal the money for their down payment is not … (4 comments)
buying a home: Seller Contributions Towards Closing Costs
- 04/16/14 05:54 AM
A realtor called me today with a question regarding maximum seller contributions on an FHA deal. A seller contribution is a dollar amount or percentage of the purchase price that a seller agrees to contribute towards closing costs, prepaids, and/or points. Each loan product has its own contribution limit which ranges from 3% to 9% of the purchase price. Below is a seller contribution chart organized by loan product. It is important that your realtor knows which type of financing you’re receiving so that he/she knows the amount of seller contribution you can request in your offer. If you have any questions about seller … (2 comments)
buying a home: The Loan Process
- 04/14/14 10:52 PM
When we bought our first house, I really had no idea what was going on behind the scenes. There were times, however, when I wish I was a little more informed about the process. Here’s a helpful summary of the loan process from application to closing: With the help of your loan officer, realtor, and closing attorney, you can make it across the finish line and become a homeowner!
If you are considering purchasing or refinancing in Richmond, VA please contact me for a mortgage consultation. To stay informed, follow me on Twitter and like me on Facebook. If you are interested in purchasing or … (0 comments)
buying a home: Fannie Mae Homepath Loans
- 04/14/14 10:43 PM
There are so many changes going on right now in the mortgage industry. Back in August I wrote about Fannie Mae’s HomePath program which offers special financing for purchasers of eligible Fannie Mae REO properties. Guess what? The guidelines for this program have now changed. At the time of my post, you could take advantage of this awesome product with only 3% down. However, as of November 2013, the minimum down payment requirement increased to 5%. Here’s a brief updated overview of the HomePath loan program: Primary residences, second homes, and investment properties are eligible Minimum of 5 % down for primary residences, 10% for a … (0 comments)
I’ve received several questions from readers just this week on one mortgage document: the consumer explanation letter. Most of them are just plain annoyed with having to complete this document and don’t understand how to complete it.
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