New Credit Before Closing Could Kill Your Loan Approval
August 30, 2010
We have been saying for years for customers to not open new credit during the mortgage process. This becomes even more important as we move forward in time. I wanted to clarify the new quality initiative after this past Sunday’s article in the observer . The article stated that credit does not need to be re-pulled and this is true; however, all lenders are moving to credit monitoring services and if significant changes are made to a client’s credit ..... read more
Close Your Loan Faster with a Mortgage Banker
August 23, 2010
Last week, we were informed that many of the large banks are now requiring 60-day locks for purchases and 90-day locks for refinances due to high loan demand. Many of the larger banks are trying to control costs (people) after acquisitions of other legacy lenders Countrywide, Washington Mutual and Great Western that have been bogging down profits in the mortgage business.
As a mortgage banker we can still close a loan in 30-days and recently I closed a purchase loan in 15 days. This is ..... read more
The Right Appraisal Can Make All the Difference - We Have an Advantage
August 19, 2010
Rumors about HVCC being repealed have begun to fly around the mortgage industry. The Home Value Code of Conduct law (HVCC) that went into effect has been the center of controversy since it went into effect in May of 2009. The law was part of the sweeping changes to keep appraisals independent from the loan officers’ influence and make sure values provided were real.
While the HVCC was a great idea the law was written so loan officers cannot have any influence on who is given an ..... read more
FHA Rules to Change - Still the best 1st time buyer loan
August 9, 2010
"Trust your own instinct. Your mistakes might as well be your own, instead of someone else's." ~ Billy Wilder
Beginning September 7th there will be a new schedule for FHA mortgage insurance premiums made after that date. In basic terms, the upfront premium will decline from 2.25 percent to 1.0 percent and the annual fee will increase from .55 to as much as .90 percent.
All of this raises a question: If the FHA expects to raise an additional $300 million per month with the ..... read more
Mortgage Broker vs. Bank Loan Officer - Which one should you choose?
August 2, 2010
""If you don't run your own life, somebody else will."....John Atkinson
Mortgage Broker vs. Bank Loan Officer
When you're looking for a mortgage loan, you may work with a loan officer who generally works for a bank, or you may choose to work with a mortgage banker or mortgage broker. People often confuse these three loan providers even though they will get you the same results: a new home loan.
It is important to understand the difference between these three types of ..... read more
To pay an origination fee or not?
July 26, 2010
"People think I’m disciplined. It is not discipline. It is devotion. There is a great difference." Luciano Pavarotti
To pay an origination fee or not? Actually we get many calls referencing closing costs and origination fees. In Charlotte it is traditional to pay an origination fee and in many cases the lowest rates are quoted with 1% origination fee and 1% in discount points. This can create confusion over the rate for the day versus the costs to close.
..... read more
Refinance your loan by Aug 26, 2010 for better cash flow
July 20, 2010
It is getting close the deadline to do a refinance without having to pay the entire property tax bill at closing. In Mecklenburg County property taxes are due on September 1, 1010, however; they are not late until January 6, 2011 (almost all escrowed taxes are paid in late November and into December). If a mortgage is refinanced after September 1st you must bring all 12 months of taxes to the closing table at the time of the new mortgage funding. This can lead to a larger loan amount or ..... read more
What a Change in Circumstances Can Mean for Your Closing
July 12, 2010
"Creativity means believing you have greatness." - Dr. Wayne Dyer
Deanna and I are off to take our third exam for our SC license; which brings us to next weeks topic of the different between being licensed and registered. Do you want to work with a non-licensed professional after all the changes we have seen?
Quick reminder/update:
Please remember if an appraisal does not come in for value and anything ..... read more
Seasoned Funds What are they and why do you need them?
July 5, 2010
"Experience is a hard teacher because she gives the test first, the lesson afterward." ~ Vernon Law
As mortgage lenders we often see buyers trying to use money that "magically" appears in their account or client's that have businesses and may have cash they want to use for the down-payment on their new home. All lenders require that down-payment and reserve funds be seasoned. So what does this mean? (no it is not mesquite flavored :)
Seasoned funds are funds that ..... read more
Gift Funds for Down Payment: how much and what loans?
June 28, 2010
The requirement for down payment when first time home buyers enter the market has seemed to present an obstacle after years of 100% financing options and down payment assistance programs. Another challenging area is when children want to assist their aging parents purchase a home. The rules for down payment and gift funds are not 100% clear and they do vary based upon the loan type FHA, VA, USDA (Government loans) all have different rules. Conventional financing has its own set of ..... read more
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