Why Do Lenders Sell Loans?

The mortgage industry sometimes refers to as a “goodbye” letter. In essence, it’s an advance notice that a homeowner’s mortgage has been sold and transferred to another entity. For many, this might be somewhat surprising. A borrower and a loan officer form a relationship during the homebuying process or when refinancing an existing mortgage but…

Tips for a Smooth Jumbo Closing

Conforming loan limits for 2020 have recently been announced. Each year in October, the Federal Housing Finance Agency, of FHFA, collects data on the national median home value and compares that number from October of the previous year. If there is an increase, the conforming loan limit will increase by the same amount.  Conforming loans…

Down Payment Assistance: Grants vs. Loans

Typically reserved for first time home buyers, although that’s not always the case, down payment assistance can help buyers gather up enough funds to buy and finance a home. These funds can be used for a down payment, closing costs or a combination of both. Closing costs can come in the form of one-time fees…

Co-Signing? Consider These Points

Co-signing is an awfully nice thing to do for those that need a little help qualifying for a home. Usually it’s a parent helping a child, but it can also be for a relative or close friend. It’s certainly not an uncommon request and, for those who are able, it’s a great way to get…

Inspection vs. AVM vs. Appraisal

All three of these terms involve some sort of activity on a property. An inspection, an Automated Valuation Model, or AVM and an appraisal. While related, they all have different functions but sometimes they’re confused with one another. Let’s take a closer look. A property inspection is ordered by the buyers. While not required by…

The VA Funding Fee Explained

Mortgages that are backed by the Department of Veterans Affairs are referred to as the VA loan. While the VA doesn’t actually get involved with any part of an approval, it does issue guidelines that lenders must follow in order to receive the loan guarantee. VA loans are one of three of the government-backed programs,…

The VA Funding Fee Explained

Mortgages that are backed by the Department of Veterans Affairs are referred to as the VA loan. While the VA doesn’t actually get involved with any part of an approval, it does issue guidelines that lenders must follow in order to receive the loan guarantee. VA loans are one of three of the government-backed programs,…

What Happens in 30 Days

Okay, you’ve got a signed contract in your hands. You applied for a preapproval several weeks ago and began shopping for a home. Your loan officer pulled a credit report and asked for documents providing evidence of enough cash to close. This amount includes not just your down payment, but also closing costs. While you…

Can Someone Achieve a Perfect Credit Score?

It’s possible but in all my years in the industry I’ve never seen a perfect score. Credit scores, commonly referred to as FICO scores, the acronym for the Fair Isaac Corporation which developed the algorithm, are three digit numbers ranging from 300 to 850. Most conventional loan programs today will approve an application with a…

The Basics of Down Payment Assistance Programs

Perhaps the single biggest obstacle to home ownership is coming up with enough money for a down payment, closing costs and cash reserves. While some loan programs don’t require a down payment, such as the VA and USDA programs, others do. For example, FHA loans ask for a minimum down payment of just 3.5 percent…

Interest Rate Locks: What You Need to Know

Here’s something that many probably don’t know– mortgage rates can change daily and in times of somewhat volatility, they can change during the course of a business day. This can mean getting rate information from a lender in the morning and calling back in the afternoon to lock in that rate to find rates are…

First Time Home Buyers: Your Six Month Plan

First time home buyers who dip their newbie toes in the mortgage waters might soon find out there’s a lot more to know than originally thought. It is a brand new world with lots of new terms, people and businesses and it can be a bit overwhelming at first. Heck, even seasoned buyers can find…

How Lenders View Retirement Income

If you or someone you know is retired or retiring soon and planning on buying a “forever” home, there are some things to know as it relates to qualifying income. For most, retiring means living on less and essentially downsizing financially. The regular 1st and 15th paycheck is in the rear view mirror and now…