Employee or Self Employed

Are you and employee or self employed? This is not an uncommon thing, where people do not know or understand how they are classified or paid. There are some significant differences from a W2 employee or a 1099 Self employed individual.

I am not an attorney or a CPA, I do not work for the IRS or department of labor nor do I want to. However, I do want to talk about this from a loan origination point of view and what the basic facts are of what we ask of you when you complete your loan application and for us to get your loan approval.

Let’s start with are some common statements I hear from borrowers regarding the confusion between being an employee or self employed: 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

Low Down Payments and Grant Programs

Low Down Payments and Grant Programs

There are many programs out there for the first-time home buyer. Each state may have their own programs and grants. Within each state, some counties may have different types of programs however the availability of funds may be limited either annually or by quarter. Home buyer’s general have to take credit counselling courses. These courses may different per county and  Continue reading

Still Renting

Almost everyone has rented a home at some point in their life. Most people have no choice but to have to rent once they have finished school. Commonly debts are high and income is low. Most younger people are focused on just finding a good job and haven’t even thought of putting together a finance plan.

Whatever type a plan you put together, whether it’s a Continue reading

Be grateful for those who served

Be Grateful for Those Who Served

I know for most people it’s hard to imagine the feeling that an eighteen-year-old man or women may have, on that first moment that the strong, angry looking man – wearing a large brimmed hat – yells at them to get off the bus and to stand on a set of yellow painted foot prints on the pavement in Paris Island, South Carolina.

Why in the world would someone ever want to put themselves in this position? What has happened in that little space between someone’s ears Continue reading

What are you waiting for?

What Are You Waiting For?

In 2006 – 2007 we saw the highest housing prices and sales on record. Why with today’s housing prices  – still on average less than 65% of those homes values – and with today interest rates more than 2% less than during that time frame are most still not buying in today’s market.

Really – What Are You Waiting For?

Has our attitude towards home ownership diminished? Continue reading

Income Consistency

Income Consistency

I have often written about the different parts of the mortgage loan process and the components that are needed for a full approval. Yet, it’s been a while since I can remember focusing on just income. So, let’s all take a peek into the basics of qualifying income—Including you well-educated higher income earners, Continue reading