The following is regarding ‘Altered Documents’ which hide the truth for those looking to take out a mortgage loan.
I know the consumer does not always know what happens throughout the loan process – from loan origination, the application to processing and eventually underwriting. At the time of application most loan originators assemble basic documents, from drivers license and social security cards to pay-stubs and bank statements. This first look at documents, most oftentimes, is only a quick glance over to get the basic information to fill in the loan application.
The processor is generally the person who is going to set up the file for the underwriter to review, accept and approve the loan. So, before sending the file to the underwriter a good processor is not only reviewing the items to ensure everything is there but also Continue reading
In the beginning being properly prepared can make of the difference between a good start and a shaky one. What do I am mean by this?
When a loan originator receives certain information, they are required to disclose to the borrower(s). What is that information?
The industry uses the acronym, ALIENS. Continue reading
There are things out there that I hear all too often. Like, I was told to call you as I was screwed over by my last lender. So, the first thing that comes to my mind is here we go another person blaming someone else for their failures, but as I listen I also try to wonder is there that many bad lenders or loan originators out there?
Communication is right there at the top of the list for you the consumer right along with, Continue reading
But, It’s Paid for doesn’t mean it’s free and clear. I remember my father always telling me, nothing is free, you will always owe someone or somebody something. Never think it’s all yours and its free. Free is the most missed used word that you will hear. So, watch out for those that say free.
Yes, I must have heard that with what seems like a million times from my father. Since then, every time I hear the word free I am always looking for that catch or gotcha, when and where is it going to come from, what did I miss?
I can tell you that I hear this from someone at least once a week, “It’s all mine, I own it free and clear”. For me as a mortgage broker I am the one who always has to tell someone, no it’s not free and clear. This is a pretty common statement made by most who own any type of real estate without a mortgage loan. Every week it’s a different person but their response is always the same as the people before them. “But, it’s paid for I have no debt”
Some where along the way you paid for that property so it’s not free. It maybe clear of a mortgage loan but it’s not clear of debt. Every property owner has to pay taxes on their property, there is a tax bill attached to every property. We can also look at insurance on the property as a debt and if in a home-owners association we can add that HOA fee or Condo fee too.
No matter how you spin it, you will need to include any real estate owned into your debt to income ratios. Save yourself some time and money, provide all the information you have or can get about any type of real estate you own. It will all show up in the process and knowing it upfront can help a great deal on getting a very accurate pre-qualification letter.
Disclose everything, ask questions, get your facts, get properly prepared and we will see you at a happy closing table.
Don’t Let the Door Hit…
I still hear this every day. The same old cry from those who want first-time home buyer programs. These programs while real, they are mostly unrealistic and have proven to be nothing more than political bologna.
Let start with the basics and the best loan programs. Continue reading
I Have No Debt
I remember growing up and having this conversation with my father when I was about 7 or 8 years old. I asked why do I have to do all this yard work and it’s Saturday? My father’s reply was simple, “you have to pay your bills”. I was baffled as I thought to myself I don’t have any bills. Which I replied and soon regretting my reply, I asked him what bills? Well, I am sure I don’t have to tell you how long I had to stand there getting that lecture about the roof over my head, the food on the table every day, and the warm water to bath in.
Today I am a father of three but yet I find myself having this same similar conversation with no only my kids but with adults my age nearly every week. Part of the pre-qualification process is asking people what does your month debt load look like. Continue reading
Market Slow Down, What?
We always get reports on what the market is doing. These reports come from NAR (National Association of Realtors) the MBA, (Mortgage Bankers Association), NAMB, (National Association of Mortgage Brokers), we get reports for Builder Associations, this association and that association. Sometimes I wonder who is really doing the numbers because sometimes it just does not really add up.
Most often these reports come from Continue reading
Government Debts Don’t Disappear
Not a popular subject but the possibility or potential of being involved with a government debt exists for almost every one of us. To think it’s not, is a tough way to learn this, just as you are about to purchase your dream home. Whatever the cause or reason you believe those old government debts went away, they didn’t.
What are government debts?
Directly or indirectly, the most common government debts we see are Continue reading
Your Search for Homes
Today with the internet and all the realtor websites out there most people start their home search as much as a year in advance of their home purchase. The same goes for those selling their homes. Many people will spend hours and even days on end on the internet reviewing what homes area selling for, what condition those homes are in compared to theirs and what they need to do to prepare for the sale of their home or purchase of their new home.
I have watched people spend days negotiating the price of a home or after spending hundreds of dollars on home inspections to walk away from a deal over $1000 or $2000 in needed repairs or Continue reading
Understanding Your Income
Income is still one of the most difficult things for a consumer to understand; what of their income is considered qualifying income for their debt to income ratios. This is not as simple as saying ok, “I make $15 per hour and work 40 hours per week”. That sounds so simple but may not be. This can be Continue reading