The Mortgage Files

Nationally syndicated mortgage news and advice from Senior Loan Officer Scott Sheldon.

Old Divorce Affecting My New Mortgage Loan

By Scott Sheldon / January 22, 2014

If on your loan application you marked ‘single’, and you’ve been divorced in the past this could be a double-edged sword and here’s why:  while you are presently single that doesn’t change the fact that the past is the past, in other words, if your previously divorced yet your presently single  that creates a big…

Who Decides Which Title Company To Work With For My Mortgage?

By Scott Sheldon / January 15, 2014

When buying a home, the seller typically makes an initial request to use a particular title company, however it is not mandatory to accept their choice. In some situations, if you work with the seller’s preferred title company they will discount the title fees. This is very common in bank owned property transactions, but there…

Can I choose my own appraiser for my mortgage loan?

By Scott Sheldon / December 28, 2013

Unfortunately no, lenders are under very tight scrutiny as our real estate appraisers to make sure there is no outside influence to inflate a property value for the purposes of securing a mortgage. The mortgage company you select a higher for financing is required to choose from a panel of appraisers, from there, they contact…

Whats the maximum loan to value permited on second home?

By Scott Sheldon / December 24, 2013

Unless eligible for a Sonoma County Harp 2 Loan, where a loan to value is not required, the purchase or refinance of the second home has to have a minimum of 10% equity. In such a scenario,  PMI  a.k.a. monthly mortgage insurance would be applicable on a monthly basis until 20% equity is reached  by…

When Does A 15 Year Loan Change From Paying Interest To Paying Principle?

By Scott Sheldon / December 22, 2013

The answer in short – is never. At no time on a 15 year mortgage does the whole entire payment go solely to principle. Interest is paid right up through the loan payoff at 180 months. Unlike a 30 year mortgage, with amortization based on 360 month, a 15 year mortgage is based on amortization…

Can I buy a house 1 year after a short sale?

By Scott Sheldon / December 20, 2013

Yes under the FHA Second Chance Program. The program allows a home buyer to repurchase just 12 months after a foreclosure or short sale. In order to qualify, there must be a documentable loss of income for a minimum of six months and/or supporting documentation showing a one time unforeseen economic hardship that resulted in…

How Do I Calculate Mortgage Insurance On A Conventional Loan?

By Scott Sheldon / December 12, 2013

Calculating monthly mortgage insurance on a conventional loan is best handled directly with the mortgage company whom you’re hiring to do your purchase preapproval and/or refinance loan with. However, to have a general understanding of how mortgage insurance works, know that it is required for any loan with less than 20% down. Plan on on…

Where is The Best Place To Shop Mortgage Rates?

By Scott Sheldon / November 20, 2013

This is the mother lode question on every consumer’s mind seeking mortgage loan financing. Everybody wants to get the lowest and best possible interest rate for their mortgage right? Obviously, the lowest possible interest rate and least possible cost is ideal. The cold reality is that after you close escrow rates can drop below what…