Found 34 blog entries tagged as Team Move.

When Does A Refinance Make Sense? Don’t Go By the Saving 2% Rule!


When should I refinance?

Refinancing a mortgage when rates are low can save homeowners thousands to tens of thousands of dollars over the life of the loan term.  Too often everyone hears “You shouldn’t refinance unless you can save 2% in rate” and if everyone waited for a 2% reduction, so many could lose out on a very big savings!  Believe it or not, borrowers can even save from only a 1/4% lower interest rate as long as the costs versus savings makes sense.

When does it make sense to lower my mortgage interest rate through a refinance

When does it make sense to lower my mortgage interest rate through a refinance

 

 Examples to consider when a refinance makes sense or not:

  1. Larger loan amounts do not need as much of a lower rate to…

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“I Want to Buy a Home-In a Year or Less!” Best Tips for Paying Rent & Why


Rent tips To prove your rent history the best, pay your rent by check on-time each month

Rent Tips to Buy a First Home

In this series, we are providing tips to avoid the Most Common Roadblocks to Home Ownership.  So far we have discussed how to solve limited or bad credit, no down payment, and not having a budget.  So lets discuss overcoming Roadblock #4.  Not being able to document rent or housing history to show, as a buyer, that you are able to handle a new mortgage payment.  So in this article we are going to provide you detailed rent tips.

Reasons to Document Rent History

First of all, there are plenty of situations where a buyer does not have to prove a rent history.  Program type and overall strength of the borrower’s file are examples for…

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Underwater on Your VA Mortgage & Experienced a Hardship? There is a Solution for VA Borrowers

 

Solutions for VA borrowers that are underwater on their mortgage

Solutions for VA borrowers that are underwater on their mortgage

Department of Veteran Affairs offers the Compromise Sale Program to help VA borrowers get out from an underwater mortgage that is giving them a financial strain or hardship.

Too often VA buyers have purchased a home that depreciated in value so that their home is now underwater, they have experienced a hardship, and they are unable to sell the home for enough to satisfy the mortgage debt.  Foreclosures, short sales, or deed in lieu of foreclosure needs to only be a last resort because of the serious credit ramifications.

A little known solution to these sellers is the…

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Self Employed Tax Return Issues? Bank Statement Income Program

Self employed borrower bank statement program

 

Too often borrowers with incomes that are difficult to document, especially self employed borrowers, have a very hard time obtaining a mortgage loan approval to purchase a home.  Well, we have a mortgage loan option which is lenient on previous credit issues and can use the borrower’s bank statements to calculate their income and can be described as:

  • Flexible guidelines
  • Favorable terms
  • Understanding
  • Alternative solution
  • Unique
  • Up to $2,000,000 loans

Buyers with at least 20% down can have access to this product which is more forgiving in the areas of credit and income documentation compared to FHA, Fannie, Freddie, or VA.  NO TAX RETURNS…

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Did you know that some forms of nontaxable income can be grossed up?

All forms of mortgages allow for grossing up certain types of nontaxable income.  The reason nontaxable income can be grossed up is because typically mortgage loans go by a borrower’s gross income.  The amount that nontaxable income can be grossed up depends on the loan type and sometimes the tax rate that the borrower is in.  If the borrower(s) do not have to file a tax return, then the standard is grossing up income by 25%.  The grossed up figure is determined by taking the income amount and multiplying it by 125% or 1.25.

Examples of types of income that all or portions can be grossed up are:

  • Housing allowance for pastors & reverends.  Check out our blog on…

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Receiving social security disability is not a reason to be denied for a mortgage


Mortgage home loans allow buyers to count social security disability income

Mortgage home loans allow buyers to count social security disability income

A common but difficult to prove required mortgage loan stipulation in the past was if a borrower receives Social Security disability or other type of disability income, the borrower had to proof that the income is likely to continue for 3 years from closing.  This practice is not allowed as per the Consumer Financial Protection Bureau (CFPB) as it is considered discriminatory.  Mortgage companies define a source of income as “current documented income that is likely to continue for at least 3 years from closing”.  Well there are protected classes and the disabled is an important…

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Rent Free? Living With Parents or Family? We Have Solutions!


Rent free? No rental history or living with family? There are lending options!

Rent Free Options Explained

It is very popular these days for people to move back in with parents.  Additionally, many even live with other family members or friends.  Therefore these buyers cannot prove an on-time housing history.  This is called a “rent free” scenario.  A recent blog posted by the National Association of Home Builders called “More than half of young Millennials move back in with parents”, states 90% of those born between 1980 and 1984 left home before the age of 27 – but then more half returned to their parents’ homes.  Read the entire article here.

All mortgage products allow for a prospective buyer to purchase a home without rental history.   Although…

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Maximum Seller Paid Costs For Buyers

Maximum Seller Paid Costs By Program Type 

Buyers and Realtors, before agreeing to a sales price, know if you need or want seller paid closing costs.  In addition, one should know the following about maximum seller paid costs:

  • How much is needed for best approval?
  • What is most beneficial?
  • What are the program seller paid limits?

 FHA Maximum Seller Paid Closing Costs

6% (sometimes lower with certain investors on lower credit scores).   Even if a buyer has funds for paying costs, it could be a great strategy for the seller to pay them.  Use up to the maximum seller paid costs because financing them with such low interest rates makes financial sense.

Maximum limits for seller paid…

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Veterans can request DD214 online. Request yours today!


Have you lost your DD214?  Is your DD214 hard to read?

One of the most important documents a Veteran should have handy is the DD214.  For instance, to close on a VA home loan, a Veteran must provide the form.  But often the form is misplaced or gets worn out.  Well, there is a website for veterans to gain access to their DD214 discharge papers online.  So don’t procrastinate!  Update your DD214 before you need it, because it could take a little time to receive.  There are a couple ways to request it and the steps are provided below per the NPRC website.

How to Request a DD214

Contact the National Personnel Records Center (NPRC)

Request by Phone:  Call NPRC Customer Service Line…

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Do you have a USDA required repair on your purchase and the seller won’t let you touch the property


Do you have a required repair on a USDA loan

Do you have a required repair on a USDA loan

We see this issue too much where the appraiser is requiring repairs to be completed on the home in order to meet USDA guidelines.  If the seller is HUD, Fannie Mae, or a bank, often they will not allow the repairs to be completed prior to the closing but then the loan can’t close because the house is not in good enough condition.  So what do you do?

Well, we allow an Escrow Holdback for the repair of items that can be done quickly and under $5000.  This is on a case by case basis and underwriting will review the overall file as well as the work to be performed to decide if allowed.

 

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