The home loan business has experienced significant changes since the real estate crash of 2008. Most notably it has become harder to qualify for a home loan. This is due to a variety of reasons including tighter approval guidelines, fewer finance options and harsher penalties for lenders that make loans that go into default. Approval Read more…
Private mortgage insurance, referred to as PMI on conventional loans and MMI (mutual mortgage insurance) on government loans is an insurance policy that protects lenders in case a borrower defaults on a loan. It doesn’t protect borrowers directly. On conventional loans, PMI is assessed when the new loan is higher than 80 percent of the Read more…
House prices are low, sending many homebuyers out into the market to buy the biggest house at the lowest price. Sure, you want the biggest bang for your buck, but there is more to think about than the monthly mortgage payment when it comes to choosing a home. Bigger houses require more costs in cooling Read more…
Every homebuyer has a list of features and amenities in mind for their dream home. While the house you ultimately choose should have some of these needs and wants, consider these five characteristics to help you choose the home that is right for you now and in the future. 1. Selling It may seem strange Read more…
Self-employed borrowers face a bit of a catch-22 when applying for a home loan. The reason is that nobody likes to pay income taxes, and the primary goal of most small businesses is to be profitable, and at the same time, pay as little income tax as is legally possible. Accountants and bookkeepers are always Read more…
After the big real estate price drop that began in 2008, lenders have instituted new, stricter loan approval conditions on borrowers. Gone are the days of no-income verification, bad credit, and 100 percent loan-to-value loan approvals. On average, loans now take longer to fund. In prior years, loans often closed within 30 days. Now it Read more…
Credit scores and credit history have always played a vital role in the world of lending. Borrowers with bad credit either end up denied and unable to purchase a home with a mortgage or can only get a mortgage with a really high interest rate and less than favorable terms and conditions (adjustable rate mortgages Read more…
An overage, as you might guess, refers to a surplus. And in the case of a home purchase, that overage, or at least part of it, tends to wind up in the pockets of loan officers at the expense of the home buyer. Simply put, an overage is an amount above the loan amount that Read more…
Investment loans are not as straight forward as the typical home mortgage. In conventional mortgages, borrowers usually offer lenders paystubs and other documentation to verify their income and earnings. May investors don’t possess income statements from an employer especially if they own a business, are self employed or receive much of their income in cash. Read more…
Every bank, lender and mortgage company has its own set of underwriting guidelines. Underwriting guidelines are the rules and regulations that the lender uses to decide whether or not it wants to grant a loan to the borrower that has applied. If the lender is processing an FHA loan or a conventional loan, they have Read more…
Interest rates move in curves: up, down, up and down again. When should you refinance? Every time the rate hits Read more...
One of the biggest purchases you will probably make it your life is your home. Your home may also be Read more...
The home loan business has experienced significant changes since the real estate crash of 2008. Most notably it has become Read more...
1. What is HUD? HUD stands for the United States Department of Housing and Urban Development. It’s a government agency Read more...