For many, seeking a home loan is an exchange of trust and privacy when it comes to providing a social security number to obtain a credit report. The credit report is one of the foundational pillars mortgage companies use to originate a loan by taking into consideration debt obligations which impact borrowing ability. After reviewing…
In the latest Fed meeting, Ben Bernanke and the Federal Reserve Board announced it will purchase up to $40 billion per month in additional mortgage-backed securities in an effort to further facilitate quantitative easing until the economy begins to improve. Financial markets on September 13, rallied on the news of the government’s intervention to improve…
As mortgage lender, we see it all the time, cash funds being used in consideration on a purchase mortgage or on a home refinance. People earning non-reported money doing cash side jobs otherwise known as money “under the table.” These funds are ineligible as consideration for procuring a home loan. The reason is simple, all…
This is the age-old question we are asked time and time again on nearly every mortgage scenario. Nobody wants to refinance their home loan, with any shroud of doubt. So how do you determine whether the cost-benefit is the right choice for you and your family? 2 Tests will determine if refinancing makes sense…
Monthly mortgage insurance can usually be removed at 20% equity if you have a conventional loan. The mortgage lender must remove the mortgage insurance at 22% equity.if you feel you have 20% equity in your property and your currently paying monthly mortgage insurance, contact your mortgage lender and request they remove the monthly mortgage insurance.…
“There’s no such thing as a free lunch.” Such words have never been more relevant to consumers being pitched to take out a no cost loan. No cost mortgage mortgages have been around since the mid-90s and offer consumers the ability to pay no closing fees. The general closing costs, you’d otherwise pay in procuring…
A debt income ratio, DTI for short, is the percentage of your gross monthly income that is allocated for reoccurring monthly debt obligations plus your total mortgage payment. The way the math is calculated is by taking any consumer monthly debt obligations on a monthly basis and adding them to the proposed monthly house payment…
The answer is for a few reasons: Lenders did you make sure your in the same line of work lenders need to make sure you’re doing the same type of occupation lenders need to make sure you have a history of employment with that particular employer Paystub’s are only part of the full financial picture,…