Quick Tips On The Mortgage World

Monday, December 21, 2015

That Time Of The Year Again…

Here we are at the end of the year.

Now is the time to think about what you want to achieve for the coming year. …To set your goals.

I would like to suggest one of the goals you should incorporate for the coming year if you aren’t already doing it is to create a savings program.

I’ve written about this before, but I wanted to touch on it again here because it’s important…

My job as a loan officer allows me to have a unique perspective into people’s lives.

I can see how much money people make, and how much money they have in the bank.

I do loans for people who make less than $20,000 a year, and I do loans for people who make well over $250,000 a year.

…It doesn’t matter if you make a lot of money, or very little money – there is a common problem that I see again and again…

…No, or very little savings.

This isn’t true in every case, but I see it very often.
People tend to spend what they make.

…even the borrowers I have who make a lot of money don’t tend to save their money.

My advice to you?… Pay yourself first.

Open a savings account, and before you pay any other bills – pay yourself first. …pay it just like it was a car payment or an electric bill.

…Make it a percentage (10%) of your total income.

Pay it every month. …it will build up faster than you think.

There is a special comfort that you will gain when you see that you have a comfortable cushion in the bank.

…I want that feeling for you.

This feeling of comfort will percolate into other areas of your life – less fights about money – less stress at work – happy mom and dad makes for happy kids, etc.

That’s it for today!

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

Brett

Wednesday, December 16, 2015

Cool Short Video On How To Be More Grateful…

It’s a good time of year to take a step back and review your year.

…what you did. What you wanted to do, but didn’t. …and, what you want to accomplish next year.

…and, what you’re grateful for.

I’m on Simple Truths email list. They sent an email of this video on being grateful. It’s great, and short.

I encourage you to watch it… http://play.simpletruths.com/movie/perfect-moment/

That’s it for today!

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

Brett

Monday, December 14, 2015

What You Need To Know About Part Time Income…

If you are considering getting a part time job to give you extra income for mortgage qualification purposes – consider this…

FHA will want to see that you have a two year stream of this part time income before they will give you credit for it.

…So, in other words if a loan officer tells you that you need more income – you can’t just run out and get a part time job to satisfy this need. …You wouldn’t fulfill the 2 year work history on it.

You do have other options though… If you are in this situation – please give me a call or drop me an email. I would love to try to help you.

That’s it for today!

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

Brett

Wednesday, December 9, 2015

I’m starting to see bank statement programs introduced by major wholesale mortgage investors. Yes, they are already in the market now, but mostly just from small non QM type lenders. This is different.

These are programs where self employed borrowers can prove their income by providing 24 months of bank statements to prove income, instead of tax returns.

The max loan to value ratios on these loans are around 80%. Meaning you would have to put down 20%.

Wanted you to be aware of their introduction.

If you feel you could benefit from a loan like this please let me know.

That’s it for today!

Thanks for reading!

Brett

Monday, December 7, 2015

Sometimes Refinancing Isn’t Right For You…

This may sound funny coming from a mortgage guy, but sometimes it’s not necessary to refinance your mortgage to reduce the number of years left on your mortgage.

I have to tell people sometimes that it just doesn’t make sense to refinance. The drop in rate isn’t significant enough to warrant the costs of the refinance.

…but, what do these people do when they want to refinance to reduce the number of years on their mortgage?

One simple thing you can do is simply pay more each month on your current payment.

I’ll give you an example…

On a $100,000 30 year mortgage – if you just add $120 to your payment every month you will pay your mortgage off in 20 years.

…If you add $250 to your payment on a $100,000 30 year mortgage you would pay the mortgage off in 15 years.

Easy right!

That’s it for today!

…by the way if you know of someone needing to be prequalified for a mortgage loan – I appreciate your referrals!

Thanks for reading! …and, have a great day!

Brett

Wednesday, December 2, 2015

Make Sure Your Mortgage Company Has This…

Just because FHA, or Fannie Mae allows for something in their guidelines doesn’t mean your current mortgage company will allow it. Many mortgage companies have their own overlay guidelines. These overlay guidelines go on top of the basic loan guidelines.

Overlay guidelines are restrictive, more conservative, and can prevent you from being approved for a mortgage.

If your loan officer runs up against a road block on your loan – whether it’s re-strictive guidelines, or an underwriter that doesn’t like your file, your loan officer had better have another option.

If they just work for a small local bank, or work for one of the big banks (like Wells, or Bank of America) they likely won’t have another option.

If your loan doesn’t fit into their box then you are just out of luck.

Solution:

Make sure you use a mortgage company that has more than one underwriting option. I know with Berkshire we are both a bank and a broker. If our own bank can’t do the loan we have multiple other options on where to best place your loan to get an approval! …and, that’s what you want.

That’s it for today!

Thanks for reading!

Brett

Monday, November 30, 2015

Best Time Of The Year To Do This…

If you have been considering refinancing your FHA loan we are at the best time of the year to do that.

With Conventional loans we have more flexibility to roll closing costs and prepaids into a loan.
FHA has strict rules on what can be rolled into a refinance loan. So, with FHA often times you end up bringing money to close on a refinance because we are limited on the maximum loan amount.

Once your current mortgage servicer pays your property taxes, then we only have to prefund your new escrow account with three months of taxes. …This is the lowest it will be all year.

The property tax bills are being paid this time of the year. …Hence, a good opportunity to refinance.

That’s it for today.

Thanks for reading!

Brett

Wednesday, November 25, 2015

Thanksgiving Fun Facts…

I hope you guys have a safe and happy Thanksgiving!

Now, down to business…

Fun facts about Thanksgiving and Turkeys…

Did you know:

-The pilgrims didn’t use forks; they ate with spoons, knives, and their fingers.

-Benjamin Franklin wanted the turkey to be the national bird of the United States.

-Abraham Lincoln issued a ‘Thanksgiving Proclamation’ on third October 1863 and officially set aside the last Thursday of November as the national day for Thanksgiving.

-Although, Thanksgiving is widely considered an American holiday, it is also celebrated on the second Monday in October in Canada.

-The heaviest turkey ever raised was 86 pounds, about the size of a large dog.

-Turkey has more protein than chicken or beef.

-Male turkeys gobble. Hens do not. They make a clucking noise.

Thanks for reading!

Brett

Monday, November 23, 2015

Amazing Terms For Fannie Mae Foreclosures…

If you are looking to buy a home, and want a really good deal and amazing terms on your financing you might look at Fannie Mae foreclosures.

I wanted you to be aware of a special loan program Fannie Mae has created for Fannie Mae owned property.

It’s called HomePath. It allows a low down payment and flexible mortgage terms.

Here are some of the great features of this loan…

1) Only 3% down payment. …and, this down payment can be a gift, or even a loan from your employer!

2) No lender requested appraisal!

3) No mortgage insurance! …This is a biggie.

4) Generous seller contributions for closing costs.

5) Available for primary residences, second homes, and investment properties.

Have your Realtor do a search for Home Path homes in your area. They are usually competitively priced, and you can’t beat the loan terms!

That’s it for today.

Thanks for reading!

Brett

Wednesday, November 18, 2015

Make Sure You Do This Before You Apply For A Loan…

I touch on this from time to time, but it’s important so I want to revisit it…

One of the most important things you will have to do when you apply for a loan is to show that you have the money for the down payment.

This is called sourcing in the mortgage industry.

For instance, the down payment on an FHA loan is 3.5%.

If the seller is paying your closing costs – you will still have to pay your 3.5% down payment.

You can have this money in your checking account or savings account now. You can borrow it from your retirement account.

…You can even get the down payment as a gift.

…but, it’s crucial that we are able to show where it’s coming from.

I can tell you that cash is a problem when it comes to sourcing your down payment. You will need to put it in the bank and leave it for 60 days before we can use it.

If you aren’t sure where your down payment is coming from – find out now.

..before you apply for a loan.

That’s it for today.

Thanks for reading!

Brett

Monday, November 16, 2015

Two Things To Make You More Productive…

This tip isn’t about mortgages.

It’s about being more productive.

Many of you use Gmail. I use Gmail. I like many things about it, but I won’t go into all the details here.

One of the cool things about Gmail is that you can add things to it to make yourself more productive. Some of these things are free, some cost a modest amount of money.

I wanted to tell you about two things specifically you can download into your Gmail to turn it into a CRM (customer relationship manager).

One is called Boomerang. Boomerang does many things, but one of the things I like the most is that you can tell it to have an email show up in your inbox at any time in the future to remind you of something.

Another add on for Gmail I like is called Active Inbox. This add on allows you to integrate tasking to your emails, and also has many follow up features.

Both of these add ons allow you to be more productive and make it easier to stay on top of relationships with customers as well as friends and family.

…just wanted to share!

Have a good, safe week!

Thanks for reading!

Brett

Wednesday, November 11, 2015

Things Not To Do Prior To Applying For A Mortgage…

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 three possible complications:

1) You have to explain the inquiries on your credit.

2) It will raise your debt to income ratio if you take on additional credit.

3) If you finance an amount over 50% of the available credit it could negatively affect your credit score.

So, while you are in the loan process – don’t apply for anything that would involve credit. (appliances, lawn equipment, etc.)

That’s it for today.

Thanks for reading!

Brett

Monday, November 9, 2015

Don’t Miss Your Window To Refinance…

With the jobs report last week being better than anticipated it’s becoming increasingly likely the Fed may hike rates in December.

Rates have been low for a long time, but it won’t last forever.

If you have been considering refinancing for a lower term, lower payment, to get cash out, to pay property taxes, etc. …now is the time to do it.

Have a good, safe week!

Thanks for reading!

Brett

Wednesday, November 4, 2015

This Bill Is Due This Time Of Year…

This is the time of year counties are sending their property tax bills out.

There are two issues I see every year with regard to property taxes. …Issues that put people in tough spots.

1) Some people just don’t have the money saved up to pay their property taxes. …They might have had the money, but had to use it on an emergency. …or any number of other things.

2) Some people that have an escrow account on their mortgage – but their mortgage company didn’t collect properly. This often results in an arrearage… Which means your payments go way up until the escrow is caught up.

If you are in either one of these situations – there’s usually an easy fix for it. …Refinancing.

We can often refinance someone in either one of these situations, and we pay the property taxes through the new refinance loan.. …Not only that, but usually at a lower rate and payment than they have now.

Please let me know if you have more questions about how this refinance works.

I hope you have a great day! Thanks for reading!

Brett

Monday, November 2, 2015

Texas Cash Out Loan Guidelines…

A few of quick notes on some of our guidelines for Texas Cash Out loans…

1) We can do Texas Cash Out loans down to credit scores of 620.
2) We can do up to 10 acres for urban areas.
3) We can do up to 20 acres for rural properties.
4) 1 day off the market with a 70% LTV for properties that have been listed.
5) Payment of current property taxes are not considered a Texas Cash Out loan.

I hope you have a great day! Thanks for reading!

Brett

Wednesday, October 28, 2015

How To Refinance Your FHA Loan – Even If You Have Bad Credit…

Let’s say you currently have an FHA loan, and you would like to refinance it.

…but, your credit is poor. You think your stuck. …That you can’t refinance.

I have good news for you. …As long as you have been paying your mortgage on time you can still do a Streamline Refinance on an FHA loan. …Even with terrible credit!

If you are in this situation please let me know, and I’ll see if we can help you out.

I hope you have a great day! Thanks for reading!

Brett

Monday, October 26, 2015

Cool 2 Minute Video To Help You…

I hope you had a good weekend!

Every now and then I’ll buy something from Simple Truths. …Consequently they send me emails advertising their products.

I wanted to pass along this short video to you from them. It’s only 2 minutes, but it’s powerful and will help you strengthen your relationships with family, friends, and co-workers.

Enjoy… http://play.simpletruths.com/movie/the-100-0-principle/

Have a good week!

Thanks for reading!

Brett

Wednesday, October 21, 2015

Easy Way Around Disputed Accounts…

I want to give you a solution to a problem I see every day.

Disputed accounts.

Usually when I see someone with alot of disputed credit accounts its because a borrower has hired a company to try to “improve” their credit scores.

Often they are surprised to learn when they apply for a mortgage their loan officer, or the underwriter will want the disputes to be removed.

If you have alot of disputed accounts removing these disputes can be quite a chore. …and, it can take alot of time.

If the clock is ticking on your closing date this can often mean disputed accounts can kill a contract. …you just don’t have the time to remove them.

Here is one way to solve this problem without removing a single dispute:

Ask your loan officer to have the loan underwritten as a manually underwritten FHA loan. The underwriter can manually underwrite an FHA loan with the disputes in place. …they don’t have to be removed.

Problem solved.

I hope you have a great day! Thanks for reading!

Brett