New Changes in the Rules, May 2018

New Changes in the Rules, May 2018

The 115th Congress (2017-2018) passed S. 2155, The Economic Growth, Regulatory Relief and Consumer Protection Act, which includes several critical regulatory provisions. Although most provisions are welcomed by most some leave others with different concerns such as Continue reading

Credit Pulls and Credit Alerts

Credit Pulls and Credit Alerts

Timing a credit pull can sometimes be the hardest thing we have to ‘guestimate’ when to do. Allow me to explain. For a proper prequalification, a credit pull is essential. Before we do this, we always ask the borrower what they think their credit is or what they think their credit is like. Believe it or not over 85% of people are Continue reading

Don’t make me guess

Don’t Make Me Guess

Well it’s out, the new loan application, and it’s been in use for over a month now. It’s pretty crazy if you think about it, why do we need all this information anyway? In its simplest form it’s designed to make sure you’re not mistreated. A way for the government to monitor how loan originators, banks and lenders treat people who apply for a loan whether they are approved or not.  What fees one is charged or the rates you may be offered. Yes, I am going to tackle this big thing that most are afraid to even mention.

There is a particular ‘part I’ would to talk about today, it’s Section 7 Continue reading

Associations

Associations

Many people often do not understand the impacts of Associations. So here I will briefly summarize a few different types and how the will impact your purchasing power or debt to income ratios.

First let’s address the “Community Associations”. These types of associations are not “Homeowners Associations” (HOA). Continue reading

Is it the lender or me?

Is it the lender or me that is causing the issues? Well there are many different types of lenders, banks and mortgage brokerages. Each one has a different type of niche or type of borrower/ loan they prefer to work with and, yet some are just plan cookie cutter (generic). Probably it is a little of both!

What is hard for many people to understand is that its just as much about the lender as it is about the buyer. A buyer with an 800 plus credit score, who is a W2 employee and applying for a loan amount over $250,000 can pretty much pick who ever they would like to work with and really shop out the best rate.

A self-employed individual with two or more companies and multiple properties with a loan amount under $250,000 and a credit score in the 600’s is not likely going to have an easy time shopping rates and would rather spend more time searching for someone to get their loan done on time. This type of buyer is Continue reading

We Already Signed These

We Already Signed these

It’s a very common statement made by people going through the mortgage loan process. When making or filling out your loan application you will most likely be signing some releases and / or initial disclosures. Some of these you may sign again within the next couple of days, as a full loan disclosure package will be sent to you.

Many circumstances may change throughout the loan process regardless of Continue reading

Handling Cash

Handling Cash

I have cash, it’s my money, I earned it what’s your problem? Why can’t I use it for my down payment or closing cost?

This is actually a very common issue, question and concern for both the consumer and loan originator. I estimate this happens in one out of every seven transactions which experiences a cash issue.

Loan originator: Asking an applicant for a mortgage loan; What are you using for funds for your down payment and closing cost?

Applicant: I have cash. Continue reading