One Way To Turn A Denial Into An Approval…

Sometimes the difference between getting an approval on your loan or not comes down to what documentation your loan officer decides to leave out of a loan submission.

I’ll give you an example…

Let’s say you work a regular job, and at the end of the year you get a W-2.

Now let’s say last year you filed a Schedule A with your tax return and you took $25,000 of unreimbursed employment expenses as a deduction.

Factoring in the 25k deduction to your income calculation results in significantly lowering your income available for the loan submission.

Your loan officer sees this will kill your loan.

Your loan officer knows he has a “W-2 only” loan as one of his product options to place clients into. In other words he can submit the loan with W-2′s only to prove income, and leave the tax returns out. …Now he can get the loan approved and closed.

Was the loan officer ethically wrong to knowingly leave out the tax returns? …or, was he simply using a product that was available to him to serve his clients needs?

…this is a discussion for another day, but the bottom line is he got his clients loan closed using a product that was made available to him by the mortgage market place.

…p.s. I have a W-2 only program. …Just sayin’.

That’s it for today!

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

Brett

Get Pre Approved For A Loan Here.

Get A Rate Quote Here.

Need A Mortgage Calculator?

My Previous Blog Posts

How To Avoid FHA’s 3 Year Waiting Period After Foreclosure…

Normally if you have had a foreclosure you must wait a minimum of 3 years (after the foreclosure) to get an FHA loan.

However, if you have had extenuating circumstances you may be granted an exception to this waiting period.

Here are the guidelines on the extenuating circumstances…

1) Satisfactory Credit History must have been demonstrated prior to Economic Event.

2) Economic Event: Must document that credit impairments were due to Economic Event, defined as Loss of Employment and/or Loss of Income of at least 20% for a minimum of 6 months.

Loss of Employment verified with: Written termination notice, or other publically available
documentation of business closure, and documentation of receipt of unemployment income.

Loss of Income verified with: Written VOE evidencing prior income, or signed tax returns,
paystubs, or W-2s evidencing prior income.

3) Recovery: Borrower has demonstrated full recovery (minimum of 12 months) from event,
demonstrated by Satisfactory Payment history since event, and Housing Counseling: Borrower has completed HUD-approved housing counseling at least 30 days prior to application date, but no more than 6 months prior to application date. HUD Approved Counseling agencies can be found at this link: http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm.

That’s it for today!

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

Brett

Get Pre Approved For A Loan Here.

Get A Rate Quote Here.

Need A Mortgage Calculator?

My Previous Blog Posts

Here Are Two Ways To Avoid Paying Mortgage Insurance…

If you have a conventional loan, and your loan to value ratio is over 80% – you will be paying monthly mortgage insurance to the lender.

No one likes paying monthly mortgage insurance. It’s extra money added to your payment every month, and it’s doesn’t help pay down the balance of the loan.

If you want a conventional loan and your LTV is over 80%, but don’t want to pay monthly mortgage insurance here are two ways to avoid this…

1) One would be Lender Paid Mortgage Insurance. We pay the MI for you. The rate generally is .25 to .375 higher, but there is no monthly mortgage insurance.

2) Get a piggy pack loan. This is where we make two loans for you. …A first mortgage at 80%, and a second mortgage at 15%. This way you just put down 5%, and there is no monthly mortgage insurance payment.

That’s it for today!

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

Brett

Get Pre Approved For A Loan Here.

Get A Rate Quote Here.

Need A Mortgage Calculator?

My Previous Blog Posts