Quick Tips On The Mortgage World

Monday, March 28, 2016

A Special Report I Wrote For You…

I write a lot of Special Reports to educate borrowers and potential borrowers about their mortgage options.

It’s important to know the loan programs you can use to purchase homes. …This way you can determine which program best meets your needs.

Here is a report I wrote a couple of years ago about four no and low down payment loan programs you can use to purchase a home…

I hope it helps you, and if you have additional questions don’t hesitate to email me or call me.

Get report here.

That’s it for today!

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

Brett

Wednesday, March 23, 2016

How Gifts Work On Conventional Loans…

I wanted to quickly go over the rules for gift giving on Conventional loans.

First – Gifts to cover down payment and closing costs are allowed! (only on owner occupied homes)

However, a gift cannot be given by just anyone.

The following are allowable gift givers for Conventional loans…

• Relative, defined as the borrower’s spouse, child or other dependent or by any other individual who
is related to the borrower by blood, marriage, adoption or legal guardianship.

• Fiancé, fiancée or domestic partner.

• Domestic Partner: An unrelated individual who shares a committed relationship with the
primary wage earner, currently resides in the same household as the primary.

Note: Rates are very low now. If you would like to see if we can lower your rate, payment, or term please give me a call or shoot me an email.

That’s it for today!

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

Brett

Monday, March 21, 2016

Quick Credit Tip For You…

Here is one quick credit tip for getting your credit scores higher…

Did you realize that 30% of your score is made up of the ratio between your available credit vs your actual balances on revolving credit accounts (like credit cards)?

You don’t want to charge these accounts over 50% of the available balance, and its even better if you can keep it under 30% of the available balance.

That’s it for today!

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

Brett

Wednesday, March 16, 2016

An Under Used Credit Tool…

If you are considering paying off or paying down an account in an attempt to improve your credit scores – you should really consider using our “what if” program.

It can save you time and money – and give you a valuable insight on the impact of paying off or paying down accounts on your credit scores.

I’ll give you an example… Yesterday I had a borrower that was thinking about paying off his Chase credit card.

The card had a balance of $267, and his credit limit was $500. When I asked the “what if” program what would happen if he paid off the account – it said his TransUnion score would go down by 16 points. I know that doesn’t make much sense, but the fico system doesn’t make much sense.

…By the way – I closed a loan yesterday in just two and a half weeks. If you have a loan and need to close quickly – please contact me. I can probably help ya!

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

Brett

Monday, March 14, 2016

USDA Tip…

Here’s a USDA tip for you…

First, you should know that USDA family income caps.

…In other words if you make too much money you won’t qualify for a USDA loan.

Here is the link to check the income for your area…http://eligibility.sc.egov.usda.gov/eligibility/incomeEligibilityAction.do

Important: USDA goes by total household income!

In other words if you are getting a USDA loan with you as the only borrower, but you have a live in boyfriend/girlfriend that also lives in the house.

…and, that boyfriend/girlfriend has a job and makes money – then their money would also be included in the total household income calculation for USDA.

So, please be aware of this before you apply for a USDA loan.

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

Brett

Thursday, March 3, 2016

Nuts And Bolts Of A Doctor’s Loan…

Did you know we have a loan just for doctors?

It’s true!

The advantage of the doctor loan is that you can get a bigger loan at a higher loan to value ratio than people who aren’t doctors.

A normal conventional loan maxes out at 417k in Texas.

A doctor loan can go up to 650k at 95% LTV, and up to 850k with 10% down.

A few additional notes on this program…

1) Loan only comes in 5/1 and 7/1 ARM. No 30 yr fixed loans on this program.

2) Need 3 months reserves.

3) Pending contract is acceptable given: Projected income is acceptable for qualifying purposes for a borrower scheduled to start a
new job within 60 days of loan closing if there is a guaranteed, non-revocable, contract for employment.

If you are a doctor, and you need a great loan – contact me! I’ll be happy to help you!

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

Brett

Tuesday, March 1, 2016

What To Do When A House Needs Small Repairs…

I’ve written about this topic before, but I was asked about it again yesterday, so I thought I would touch on it again here.

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. Of course the seller has to agree to it, and you have to make it part of your offer.

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 $3,000, although I’ve had them up to $10,000.

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.

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

Brett