Quick Tips On The Mortgage World

Monday, August 25, 2014

What Happens If You Change Jobs During The Loan Process…

Here’s what you can expect if you are changing jobs while your getting a mortgage…

The underwriter will want to see your first pay check at the new job at a minimum, and often they will want to see your first 30 days of paychecks.

The underwriter isn’t trying to make your life difficult by asking for your new paychecks. …This is a common guideline in the mortgage industry.

There is one circumstance where you can change jobs and not have to supply your new pay check prior to approval…

If you continue to work for the same company, but you are just changing jobs within that company then you won’t have to produce a new paycheck.

If you have more questions on this – don’t hesitate to give me a call or shoot me an email!

Have a good day today! …and thanks for reading.

Brett

Wednesday, August 20, 2014

New Proposed Federal Regulations Could Cost You…

The governments many agencies that police the mortgage industry continue to do what they do best…

…which is pass new regulations with the intention of “protecting the public” that ends up costing the public big time.

Case in point: Private mortgage insurers could be forced to raise their prices if Federal Housing Finance Agency’s PMI eligibility requirements go into effect as proposed.

The proposal would require all PMI’s to hold more assets (and eventually more capital) on their books to comply with the new regulations.

The result of these new regulations would be that all conventional mortgages with mortgage insurance would be more expensive for the consumer.

I will continue to watch this and let you know if these regulations actually go into effect.

That’s it for today!

Have a good day today! …and thanks for reading.

Brett

Monday, August 18, 2014

Don’t Miss Out On This Loan Before The Maps Change…

If you have been considering purchasing a home in the outer suburbs, or in a rural area I would recommend doing it in the next few months.

The reason is that one of the best loans for homes in this area is the USDA loan. …and, the maps are supposed to change in January.

Changes to the map of eligible areas for USDA home loan programs based on 2010 Census data were scheduled to take effect Oct. 1.

However, passage of the Continuing Appropriations Act, 2014, has postponed the implementation date to Jan, 15 2014.

If you want to see how your area will change look at the USDA eligible map of your area now, and compare it to the future map of your area.

Go to this link: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

First – under Property Eligibility click “single family housing” on the left, and look at the map of your area.

Then – under Future Eligible Areas click “single family housing” on the left, and look at the future map of your area.

You can see some areas that were eligible are no longer eligible.

So, if you want to buy a house take advantage of the maps now before they change.

That’s it for today!

Have a good day today! …and thanks for reading.

Brett

Wednesday, August 13, 2014

Update On FHA’s New HAWK Pilot Program…

I wanted to give you an update on FHA’s new HAWK Program.

The estimated start date for the start of the pilot program is October 1, 2014.

To be eligible the borrower will have to complete a counselling course to be eligible for the program.

The benefit will be lower mortgage insurance.

FHA proposes that Homeowners who complete housing counseling before signing a contract to purchase a home, and who complete additional pre-closing housing counseling will receive a 50 basis point reduction in the upfront FHA mortgage insurance premium (MIP) and a 10 basis point reduction in the annual FHA MIP.

This would be significant, because right now FHA’s MI has priced themselves out of many loan scenarios.

I’ll let you know when you will be eligible to begin the counselling.

That’s it for today!

Have a good day today! …and thanks for reading.

Brett

Monday, August 11, 2014

How To Roll Repairs Into A Purchase…

I want to show you how to roll repairs into a purchase price.

I touch on this subject from time to time.

If you are buying a house that needs minor repairs – but the seller refuses to do them – what do you do?

This situation happens a lot, especially on bank owned homes.

The simple answer is to use an escrow hold back. …an escrow hold back is a small amount of money that is held out of the seller’s proceeds from the sale to make the repairs.

You have to write the escrow hold back right into the contract – under special provisions. To avoid having to rewrite this clause – be specific. Your realtor will need to write – “An escrow hold back in the amount of $______ will be used for (specific) repairs.”

One key with the escrow hold back is the repairs need to be minor – and they can’t take that long to finish. …an average amount of an escrow hold back is $1,500 to $5,000.

Knowing how to solve minor repair problems on an offer – can sometimes make the difference between getting a great deal on a house, or not buying it at all.

If this situation comes up with your deal – just give me a call – I can help you out.

That’s it for today!

Have a good day today! …and thanks for reading.

Brett

Wednesday, August 6, 2014

Rules On FHA Gift Giving…

FHA gift questions come up often.

I wanted to give you the rules on FHA gift giving. Here ya go…

Acceptable gift donors for FHA loans…

1) Borrower’s relative.

2) Borrower’s employer or labor union.

3) A close friend with a clearly defined and documented interest in the borrower.

4) A charitable organization.

5) A governmental agency or public entity that has a program providing home ownership assistance.

Unacceptable gift donors for FHA loans…

1) The seller.

2) The real estate agent or broker.

3) The builder or an associated entity.

Gifts from these sources are considered inducements to purchase, and must be subtracted from the sales price.

That’s it for today!

Have a good day today! …and thanks for reading.

Brett

Monday, August 4, 2014

Quick Credit Tip…

Did you realize that 15 percent of your credit score comes from the length of time each account has been open, and the length of time since the account’s most recent action?

So, it’s impossible for someone who is new to credit to have a perfect credit score.

A longer credit history provides more information and offers a better picture of long-term financial behavior.

So, to improve your credit score, individuals without a history should begin using credit, and those with credit should maintain longstanding accounts.

That’s it for today. …Have a good week!

Thanks for reading!

Brett