Good Morning!
Mortgage tip: If you are about to get into the loan process to buy or refinance a house - don't go out and buy things on credit.
It sounds simple, and you would think most people would know this without being told.
...but, I have a loan right now where a borrower got himself into trouble from doing just this very thing.
There are two possible complications: 1) You have to explain the inquiries on your credit., and 2) It will raise your debt to income ratio if you take on additional credit.
So, while you are in the loan process - don't apply for anything that would involve credit (appliances, lawn equipment, etc.).
...by the way, I have a special announcement coming next week!
That's it for today. ...Have a good week!
Brett
Wednesday, July 28, 2010
Monday, July 26, 2010
Considering A Lease Option? ...Then You Must Do This.
Good Morning!
I sent out an email on this about 4 months ago, but I see this situation enough that I think it bears repeating...
When you give someone option money at the onset of a lease option agreement - you are going to have to prove you gave that money when you get a loan to buy that house.
How do you prove it?
If it's certified funds you need to keep a copy of the certified check.
If it was a personal check - you need to keep a copy of the canceled check (front and back).
Don't give cash!
Anything less than this - the underwriter will not give you credit for giving that money.
That's it for today. ...Have a good week!
Brett
I sent out an email on this about 4 months ago, but I see this situation enough that I think it bears repeating...
When you give someone option money at the onset of a lease option agreement - you are going to have to prove you gave that money when you get a loan to buy that house.
How do you prove it?
If it's certified funds you need to keep a copy of the certified check.
If it was a personal check - you need to keep a copy of the canceled check (front and back).
Don't give cash!
Anything less than this - the underwriter will not give you credit for giving that money.
That's it for today. ...Have a good week!
Brett
Wednesday, July 21, 2010
This Is A Killer Of Many Loan Approvals...
Good Morning!
I want to talk to you about one of the biggest reasons behind the denial of many mortgage loans.
...The reason is: OVERLAY GUIDELINES.
The mortgage world mostly runs off of automated approvals these days. This is true for conventional loans, FHA loans, VA loans, even USDA loans.
This means we take your loan application and run it through an automated underwriting engine. It will either approve it or it won't.
However, just because the automated system approved your loan - it doesn't mean your loan is approved.
...because, once the underwriter gets it he/she likely has a set of "overlay guidelines" that they use to further evaluate your loan. This often results in an overturning of the automated approval. ...a denial.
This is particularly true of the big banks because they only have their own guidelines to use. If your loan doesn't fit in their "box of guidelines" then they don't have an alternative underwriting office they can send your file to.
Your solution: Use a mortgage company multiple underwriting options.
...and, most important: make sure the mortgage company has at least one or two underwriting options that don't put "overlay guidelines" on top of the automated findings. This is huge. ...and, guess what - I'm your guy on this one.
So, if you've had trouble getting approved with Bank of America, Wells Fargo, Chase, etc. ...Let me have a look at it. I just might have some good news for you.
Have a good day... And, thanks for reading!
Brett
I want to talk to you about one of the biggest reasons behind the denial of many mortgage loans.
...The reason is: OVERLAY GUIDELINES.
The mortgage world mostly runs off of automated approvals these days. This is true for conventional loans, FHA loans, VA loans, even USDA loans.
This means we take your loan application and run it through an automated underwriting engine. It will either approve it or it won't.
However, just because the automated system approved your loan - it doesn't mean your loan is approved.
...because, once the underwriter gets it he/she likely has a set of "overlay guidelines" that they use to further evaluate your loan. This often results in an overturning of the automated approval. ...a denial.
This is particularly true of the big banks because they only have their own guidelines to use. If your loan doesn't fit in their "box of guidelines" then they don't have an alternative underwriting office they can send your file to.
Your solution: Use a mortgage company multiple underwriting options.
...and, most important: make sure the mortgage company has at least one or two underwriting options that don't put "overlay guidelines" on top of the automated findings. This is huge. ...and, guess what - I'm your guy on this one.
So, if you've had trouble getting approved with Bank of America, Wells Fargo, Chase, etc. ...Let me have a look at it. I just might have some good news for you.
Have a good day... And, thanks for reading!
Brett
Monday, July 19, 2010
This FHA Change Is Finally Coming...
Good Morning!
Do you remember me telling you that FHA put off the announcement that the max seller help on closing costs was going from 6% down to 3%?
It looks like this change to a 3% cap on seller help could happen as soon as next month. FHA is supposed to let us know in the next 2 to 4 weeks when they are planning on implementing this.
...Don't worry. When this change does occur I'll be coming out with some great programs to help make up the difference between the max the seller can help you, and what's left to be paid above that limit.
Have a good day... And, thanks for reading!
Brett
Do you remember me telling you that FHA put off the announcement that the max seller help on closing costs was going from 6% down to 3%?
It looks like this change to a 3% cap on seller help could happen as soon as next month. FHA is supposed to let us know in the next 2 to 4 weeks when they are planning on implementing this.
...Don't worry. When this change does occur I'll be coming out with some great programs to help make up the difference between the max the seller can help you, and what's left to be paid above that limit.
Have a good day... And, thanks for reading!
Brett
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