Why Do Lenders Sell Loans?

When you first work with your loan officer very early on in the process, you’ll soon establish a trusting relationship with that person. You’ve shopped around for a new loan and interviewed several loan officers before finally landing on the perfect choice. Your loan officer has helped qualify you and provide an array of loan…

The Three Government-Backed Home Loan Programs

In today’s mortgage marketplace there are two basic types of home loans: conventional and government-backed. Conventional loans are those typically underwritten to Fannie Mae and Freddie Mac guidelines while government-backed mortgages carry some level of guarantee to the lender that approved the application. As long as the lender followed proper protocol when underwriting a government-backed…

Credit Inquiries: Why Lenders Care

FICO scores are calculated using an algorithm originally developed by The FICO Company. This algorithm considers five different characteristics of a credit file. Of course, payment history carries the most weight, contributing 35% to the total, three-digit score. The second most important relates to current account balances and credit limits. Scores need consumers to use…

How Will the TCJA of 2018 Affect Your Taxes?

Remember the TCJA of 2018? No? Need a little memory jog? The TCJA is the Tax Cut and Jobs Act of 2018 that was signed in December of each year and made multiple changes to the tax code that covered several areas, including how the tax code addressed mortgage interest deduction and Home Equity Lines…

Submitted to Underwriting: What Does That Mean?

The loan approval process goes through various stages as you get closer to your settlement date. From initial application to final funding, lenders assign these different stages different names. Your loan will initial be an application then soon thereafter submitted to processing and after that submitted to underwriting. Of course, all stages are important and…

How Conforming Loan Limits Are Set Each Year

Here in just a couple of weeks, some important economic data will be reviewed by the Federal Housing Finance Agency, or FHFA. This new data will then impact the new conforming loan limits for 2019. Mortgages are considered either a “conforming” or “jumbo” based upon the amount borrowed. Conforming loans that are underwritten to Fannie…

Buying a Rental Property? Here’s What You Can Expect

If you run across someone who owns multiple rental properties, it’s very possible that individual never intended to own so many. In addition, those who own a rental property might also be “accidental” landlords after having inherited a property or renting out their current home while buying another. Real estate investors can often find themselves…

How to Finance a Mixed-Use Property

There are essentially two types of real estate- residential and commercial. Residential is self-evident in that people occupy the property as their primary dwelling or rent the property from the owner. Commercial real estate is income producing whether it be for an office building or a doctor’s office or a beauty salon, for instance. But…

Private Lending: Why It’s So Important

Have you heard of private lending? Not so much as an owner-financed home but loans made by a certain type of lender using its own internal guidelines without having to follow third party regulations? Private money, or so-called “hard money,” is a valuable asset in the world of real estate and without it many existing…

Construction and Permanent Loans Explained

There are different types of home loans available that fall into various categories. There are fixed rate loans and adjustable rate loans. Loans for owner occupied properties and loans for rentals. There are loans for a purchase and loans for a refinance. The list is really quite extensive. Two others are construction and permanent loans.…

5 Mistakes Home Sellers Make

There’s no shortage of advice for home buyers. Getting approved for a mortgage or how to keep on top of a credit report is certainly good advice but there should be just as much attention given to those who are selling their home. After all, home sellers also typically turn around and become home buyers.…

The VA Streamline

VA loans, for those eligible, are the ideal option when coming to the closing table with as little as possible is a primary goal. VA loans don’t require a down payment whatsoever and one of the few zero-down options in today’s mortgage marketplace. The VA loan program also carries with it an inherent guarantee to…

What to Expect When Getting Pre-Approved

Getting “pre-qualified” today when preparing to buy a home is so 80’s. Getting pre-qualified then meant talking to a loan officer over the phone or in an office and having a conversation about various aspects of your financial life. The loan officer asks about your job, how long you’ve worked there and how much money…