Tax Refunds as Assets

It's almost tax refund time. Many people ask us if tax refunds can be used to pay for a mortgage down payment or closing costs.

The answer is YES! All a borrower needs to do to document the tax refund is to provide a copy of the refund check and a bank statement showing that the refund has been deposited into their account. If the refund was automatically deposited into their account, they won't have a copy of the check, but the notation on their bank statement will show that it is a tax refund. In the case of automatic deposits, the only documentation necessary is the bank statement.

The money does NOT have to be "seasoned", meaning it has been in their account for 60 days. As soon as the refund has been deposited, it can be used to pay the down payment or closing costs.

Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
www.mtgsupportservices.com


By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

Real Estate Agents - Expand Your Sphere of Influence

By popular demand, one of the greatest ways to expand your sphere of influence is BACK!

If you're a Denver area real estate agent and you have a question about mortgages or credit reports, send us the question. If we choose your question, we'll answer it in our next email newsletter, AND we'll deliver a $25 Starbucks card to you as a way of saying "Thank You" for helping to expand the knowledge base of our local real estate industry.

We'll also include your name and contact information in our newsletter, which goes to more than 6,000 local people. We'll also post your question and contact information on our blogs, giving you outrageous exposure to thousands of people interested in real estate - buyers, sellers, and people who work in the industry.

Here's what you get, just for asking a question about mortgages:

• $25 Starbucks card - delivered to you personally.
• Your name and contact information sent directly to 6,000 Colorado Front Range people.
• Your question and contact information on our mortgage blog. We had 20,446 people visit our blog in 2011 - that's an average of 56 visits per day!
• Your question and contact information on our blog at Active Rain, a real estate blog with more than 210,000 members.The correct answer!
• A chance to help expand the local real estate knowledge base.

All you have to do is email us your question. We take care of everything else.

Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
www.mtgsupportservices.com


By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

Debt-to-Income Ratio (DTI) - What Counts Against You?

The debt-to-income ratio (DTI) is the ratio of your debts divided by your income, and is one of the main things that determines how large a mortgage you can qualify for. But do all of your debts count against you?

The answer is no, not all debts count against you when determining the size of the mortgage you can get. Here is a list of some of the things that do NOT count against you when a lender calculates your DTI:

• car insurance
• electricity
• water
• gas
• sewer
• phone - land line
• phone - cell
• Internet 
• cablecollection accounts
• health insurance 

In basic terms, every debt that appears on a credit report (except collection accounts) needs to be included in the DTI, and everything that does not appear on the credit report does not need to be included.

Call us with any questions.

 

Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site: 

www.mtgsupportservices.com

By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

 

No W-2? No Problem

We get many calls this time of year from borrowers who are worried that they can't get a mortgage because their lender told them that they need their W-2 for 2011 and they haven't received it yet from their employer.

Employers have until the end of January to give W-2s to their employees and underwriters know that, so instead of a W-2, underwriters will accept the final pay stub for 2011, provided it shows the year-to-date income. The year-to-date income on the final pay stub will be the total income for the year, which is the same number that the underwriter takes from the W-2.

So don't worry if you have not received your W-2 yet. You can still get a mortgage without it.

Call us with any questions.

Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
http://www.mtgsupportservices.com/

By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

Holiday Credit Tip

It's important to remember that credit needs to be pulled twice for most mortgage transactions these days: once when the loan is pre-approved, and again right before the closing. If any new credit inquiries show up on the second credit report, then they have to be explained before the loan can close.

Many people apply for new credit cards at this time of year because of all the holiday shopping. Those credit inquiries will show up on a credit report.

If you have a question regarding new credit accounts and how that will affect your ability to close a loan, make sure you consult with your lender before opening any new accounts.


Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
www.mtgsupportservices.com

By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

FHA Loan Limits Go Up

FHA loan limits have gone back up! Here are the new limits:

For the Denver-Metro counties, the new loan limit is $406,250.

For Boulder County, the new loan limit is $460,000.

These limits are for 1-unit properties. The amounts are higher for 2, 3, and 4 unit properties.

These new amounts are in effect until the end of 2012.

As always, there is no income limitation on FHA loans and you do NOT have to be a first-time home buyer to get an FHA loan.

Call us with any questions.


Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
www.mtgsupportservices.com


By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

Fannie Mae Loan Limits for 2012

Fannie Mae and Freddie Mac have announced that the loan limits for Colorado will remain the same in 2012. Here are the limits for the Metro Denver counties:

• One unit = $417,000
• Two units = $533,850
• Three units = $645,300
• Four units = $801,950

If the loan amount is at or below the limits listed above, then the loan amount conforms to the Fannie Mae and Freddie Mac guidelines, and the interest rate will be cheaper than it would be for a jumbo loan (a loan amount greater than the limits listed above).

Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
www.mtgsupportservices.com



By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

Financing for 5-10 Properties

If someone is buying a second home or an investment property, Fannie Mae allows financing for up to 10 properties to the same borrower, and so do we!

Here are the restrictions:

• Minimum credit score is 720
• For second homes and 1-unit investment property purchase transactions, the down payment is 25%
• For second home and 1-unit investment property refinance transactions, the maximum loan-to-value (LTV) ratio is 70%
• For 2-4 unit investment property purchase transactions, the down payment is 30%
• For 2-4 unit investment property refinance transactions, the maximum LTV is 70% with no cash-out, and 65% with cash-out
• And remember, if the subject property is a primary residence, there is no limit to the number of financed properties you may have.

Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
www.mtgsupportservices.com

By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

Waiting Periods after a Bankruptcy, Foreclosure, or Short Sale

Ever wondered how long you have to wait after a bankruptcy, foreclosure, or short sale before being able to qualify for a new mortgage? Check out the table below for all the answers.


Click on the table to enlarge it.

 NOTE: For all loans, the borrower must have “re-established credit” after the bankruptcy, foreclosure, or short sale. That means no late payments of any kind for 12 months.



Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
www.mtgsupportservices.com


By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation. 



Bankers Vs. Brokers - What are the Differences?

Ever wonder what the difference is between a mortgage banker and a mortgage broker? Today's winning question by Steve Jacobson of Metro Brokers addresses that issue. Steve receives a $25 Starbucks card and gets his contact information sent to the 6,600 people on our contact list. We also list his contact info on our blog (10,199 visits for the first 6 months of 2011) and on our blog at Active Rain, a real estate blog with more than 210,000 members.

Steve's contact info follows:

Steve Jacobson CRS
Steve Jacobson Group - Metro Brokers
303-898-9000
steve.sjgroup@gmail.com

Steve's question is: What are the differences between Mortgage Brokers and Mortgage Bankers. Should one be considered better than the other?

Here's the answer: The main difference between bankers and brokers is in the way they fund the loans they sell. Mortgage bankers fund the loans themselves - the money comes from their own credit line. Mortgage brokers, on the other hand, do not fund the loans themselves. Instead, they arrange for the money to be sent to the closing, but the money comes from the bank.

There are two types of mortgage bankers: retail and wholesale. Retail mortgage bankers have employees who get paid a salary and work only for them, and they only sell their own loans.

Wholesale mortgage bankers get paid on a commission-only basis, and they sell loans from many different banks.

Because retail mortgage bankers have salaries and other overhead to pay their employees, they generally have higher interest rates than wholesale mortgage bankers. Also, lenders offer wholesale bankers lower rates in order to entice them to sell their loans. If Wells Fargo and US Bank are two of the banks that a wholesale banker represents, then both Wells Fargo and US Bank have to offer that wholesale banker a cheaper interest rate than they offer their retail customers. It is the only way they can get the wholesale banker to sell their loans.

Mortgage brokers (the people who do not fund their own loans) have interest rates somewhere between retail bankers and wholesale bankers. They are cheaper than retail bankers, but not quite as cheap as wholesale bankers. That's because the wholesale bankers assume some of the risk for underwriting the loans they sell. In exchange for assuming that risk, the lenders give wholesale mortgage bankers lower rates. Since mortgage brokers only act as middlemen, and do not assume any risk, they don't get the same low rates that wholesale bankers get.

So here are the differences:

Retail mortgage banker:

• Fund loans themselves
• Can only sell loans from their own bank
• Have the highest interest rates

Mortgage brokers:

• Do not fund loans themselves - they only arrange for the funding
• Can sell loans from many different banks
• Have slightly lower interest rates than retail bankers

Wholesale mortgage bankers:

• Fund loans themselves
• Can sell loans from many different banks
• Have the lowest interest rates

None of this is to say that you should always use a wholesale mortgage banker, just because they have the lowest interest rates. There are plenty of good retail mortgage bankers, plenty of good mortgage brokers, and plenty of good wholesale mortgage bankers. You should use a lender with whom you are comfortable. Yes, low interest rates are important, but using a lender who is knowledgeable and trusting that your lender is not ripping you off (as so many lenders do) is more important.

Just FYI, we are wholesale mortgage bankers: we represent many different banks, we fund loans ourselves, and we have the lowest rates. And we are certainly knowledgeable!


Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
www.mtgsupportservices.com

By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.