If you have relatively good credit, today’s automated underwriting systems provide a list of only the documentation that is necessary to satisfy the lender. The way it works is that once the lender has your application and has pulled your credit, the file is uploaded to one of three locations, Fannie Mae, Freddie Mac or …
Automated Underwriting and The Home Mortgage Process Read More »
If you believe that you need a good chunk of change to purchase a home, your not alone. The vast majority of first time home buyers have little money to work with and consequently do not believe they are in a position to buy a home. Either that, or credit issues prevent you from investigating …
Most people buy homes for very emotional reasons. But how do you know if it is time for you to purchase? Most people who rent can actually afford to buy their own home. So what is stopping them? A lot of people believe that owning a home in requires a big down payment, which is …
If you’re considering purchasing a home you most likely are leasing a home or apartment now. One of the first steps will be to review that lease. Determine how much time remains. If you’re within 3 months of the end of the term, then you should move forward and attempt to find a home and …
What about my existing lease when buying a new home? Read More »
Credit challenges often prevent folks from even considering home-ownership. This is a mistake. Even in the worst credit situations, you have to have a starting point. Once we have a loan application and pull a copy of your credit, we can make a quick determination if it’s possible to get you a loan and under …
This is probably the biggest misconception. While it used to be true that you needed a large down payment, this is no longer the case. In the mortgage industry, there’s always a great new product just around the corner that benefits the consumer. The latest of these to surface is the “zero down” mortgage. This …
Home loans can be generally placed into one of four categories; Conventional, Alt-A and Sub Prime and second mortgages/home equity lines of credit. We will briefly touch on what impacts rates for each of these types of loans. Let’s start with the most common, conventional loans. Fannie Mae and Freddie Mac are quasi governmental agencies …
The mainstream mortgage market is no longer run or controlled by the banks. Wall Street has replaced the traditional bank and now pulls purse strings of this vast mortgage market via “mortgage backed securities.” A mortgage backed security (MBS) is simply a bond instrument in which anyone can invest. MBS’s are trading in the free …
Sometimes, either by choice or for reasons out of your control, you find yourself trying to buy a new house before you sell the one you are living in. This poses two potential challenges; 1) Can you qualify for both home loans? and 2) what is the source of the down payment for the new …
PMI Deduction In 2020 If you obtain a new home loan with PMI (private mortgage insurance) in 2020 you might be able to deduct the cost of the insurance on your tax return. The rules are just as complicated as most other tax laws, so you should consult a CPA for guidance. What is PMI? …
