Quick Tips On The Mortgage World

Monday, June 27, 2016

New Changes For FHA Loans...

I hope you had a good weekend!

Mortgage update:

FHA has made changes to the way an underwriter calculates payments on deferred student loans.

The old way instructed the underwriter to use 2% of the aggregate balance of deferred student loans. This alone killed alot of loans because it ballooned debt to income ratios.

The new way (starting with case numbers on or after June 30, 2016) the underwriter will use 1% of the aggregate balance of deferred student loans.

This is better for borrowers, and will result in more people that can get an FHA loan.

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

Brett

Monday, June 13, 2016

Option Money Tip…

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 cancelled 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 day today! …and thanks for reading.

Brett

Wednesday, June 8, 2016

The Loan That Doesn’t Require Tax Returns…

Did you realize that if you are a W-2 employee getting a Conventional mortgage that in almost all cases you won’t need to provide tax returns to get a loan?

It’s true!

Generally all the underwriter will ask for is 30 days of paystubs, and your last two years of W-2’s. …not tax returns.

Sometimes there are things in tax returns that would complicate a loan. So, if the underwriter isn’t asking for them. …Don’t give them to him or her.

That’s it for today!

Have a good day! …and thanks for reading.

Brett

Monday, June 6, 2016

Best Way To Roll Closing Costs Into A Purchase Loan…

I get asked this question a lot by clients who are buying houses…

…”Can we just roll closing costs into the loan?”

The short answer… No.

You can do it with no problem on a refinance, but not a purchase loan.

…but there is an indirect way to do it on a purchase loan.

The best way to roll closing costs into your purchase – is to ask the sellers to pay your closing costs. …the way you do this is to make it part of your contract offer.

…they will either say “yes” or “no” to your request for them to pay closing costs. …so, right here you have a 50/50 shot at it.

If they say “no” – it’s still not over. …you can just offer to add the closing costs to the price of the home (as long as it will appraise) – and then ask the sellers to pay them. …often they will say “yes” to this.

Good luck house hunting! …call me or email me if you need help or advice getting into a house.

That’s it for today!

Have a good day! …and thanks for reading.

Brett