Thursday, April 21, 2011

VA Loans Quick Reference Guide

100% financing with no mortgage insurance and only a 640 credit score!

That's what VA loans offer. Need some more info? Check out our VA Quick Reference Guide by clicking here.

Also, make sure you check out our web site. It's a resource you shouldn't be missing. Here's the link:

http://www.mtgsupportservices.com


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

Friday, April 15, 2011

The Mortgage Loan Application - Page 1

First, get a copy of the loan application by clicking here.

The Loan Application
  • There are 4 pages in a mortgage loan application
  • It is divided into 10 sections
  • This tip will discuss Sections I, II, and III (all on page 1)
NEVER complete the loan application by yourself. The lender should ALWAYS do it for you. If your lender tells you to complete it yourself, or to complete it online, then you need to find a new lender.

Section I
  • Section I is TYPE OF MORTGAGE AND TERMS OF LOAN
  • Tells you the type of loan: VA, FHA, USDA Rural, or Conventional (non-government)
  • Loan amount
  • Interest rate (even if the rate is not locked)
  • Number of months that the loan is amortized
    • 360 months for 30-years, 180 months for 15-years, etc.
  • Amortization type: fixed rate or ARM (adjustable rate mortgage)
Section II
  • Section II is PROPERTY INFORMATION AND PURPOSE OF LOAN
  • Lists the property address
  • Number of units you are buying or own (refi)
  • Year the property was built
  • Purpose of the loan: purchase or refinance
  • Primary residence, second home, investment
  • Lists who will be on title (who will own the property)
Section III
  • Section III is BORROWER INFORMATION
  • Borrower’s and Co-Borrower’s name
  • Social Security numbers
  • Phone number, birth date, marital status, number of dependents
  • Two FULL years of residency information – every place the borrower lived in the past 24 months
Important!
  • You should NEVER complete the application by yourself – either manually or online
  • A good lender needs 15 minutes to complete the application
  • You should make sure the information is correct – if it is incorrect, cross it out and enter the correct information before signing
  • If you feel pressured by the lender, do NOT sign
  • GET A COPY of everything you sign!!!


Want to see a video of this tip?  Here is the link:

http://www.mtgsupportservices.com/Mortgage_Video_Tips.html

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

Want to make sure your loan closes? Call us at 303-345-3683.

Wednesday, April 13, 2011

Guaranteed 3.5% Seller-Paid Closing Costs

Here's some great news from Fannie Mae:

Fannie Mae is currently offering buyers up to 3.5% in closing cost assistance through June 30, 2011, if they purchase a HomePath property. The buyer does NOT have to get HomePath financing to get the closing cost assistance.

The HomePath property buyer must meet the following qualifications to be eligible:
  • Buyers and/or selling agents (the agent representing the buyer) must request the incentive upon submission of initial offer in order to be eligible.
  • The initial offer must be submitted on or after April 11, 2011 and close by June 30, 2011. If an initial offer was made prior to the effective date, the offer is not eligible for the incentive.
  • The sale must close on or before June 30, 2011. No exceptions will be made to this deadline.
  • Only buyers purchasing a HomePath property as their primary residence may receive up to 3.5% in closing cost assistance. Second homes and investment properties are excluded from the incentive.
  • Buyer must sign the Owner Occupant Certification Rider to the Real Estate Purchase Addendum.
  • If a buyer's total closing costs are under 3.5%, the difference will not be available as a credit to the buyer.
HomePath properties are properties that are owned by Fannie Mae after a foreclosure. If the buyer obtains HomePath financing, they do NOT require an appraisal, there is NO mortgage insurance, the minimum down payment is only 3% (can be from a gift), and condos have relaxed approval guidelines.

Here's the link to check out HomePath properties:

http://www.homepath.com

Need a HomePath lender? Look no further. The Mortgage Experts provide HomePath financing! Call us at 303-345-3683 for details.

All the really cool real estate agents send their clients to the video library on our web site.  Here is the link:

http://www.mtgsupportservices.com/Mortgage_Video_Tips.html

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

Want to make sure your loan closes?  Call us at 303-345-3683.

FREE Underwriting Class for Everyone

How would you like to get an inside look at mortgage underwriting? Now is your chance!
We've just added a new free class to our offerings at Colorado Free University: Get Your Home Loan Approved!: FAQ's and Secrets of Mortgage Underwriting.

Imagine if all the frustration surrounding loan approvals disappeared. No more sweating it out wondering what the lender (and the ever-so-mysterious underwriter) were doing. We'll explain exactly how a loan is underwritten. There's no reason at all that anything involved in mortgage approvals should be "secret", so we're going to tell you how it all works.
The class is for anyone who wants to know how to get their own (or someone else's) home loan approved. The mortgage industry is much, much different than it was a few years ago, and any agent who wants to maximize their income potential needs to know what happens once you turn your deals over to a lender.

The class is free. All you have to do is register for the class at Colorado Free University. Their number is 303-399-0093.
The next class is scheduled for Wednesday, April 27, 2011 from 6:30 PM - 9:30 PM. It will be at the Lowry campus of Colorado Free University (near 1st and Quebec).

You don't want to miss our other great real estate financing classes.
  • How Not to Get Ripped-Off When Buying a House (everything you wanted to know about loan fraud). Next class is Wednesday, April 20 from 6:30 PM - 9:30 PM. This class is free, but you must register.
  • Understanding Your Credit Score (everything you wanted to know about credit reports and credit scores). Next class is Tuesday, May 17 from 6:30 PM - 9:30 PM. This class is $41 for non-members and $29 for members of Colorado Free University.
All the really cool real estate agents send their clients to the video library on our web site.  Here is the link:

http://www.mtgsupportservices.com/Mortgage_Video_Tips.html

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

Want to make sure your loan closes?  Call us at 303-345-3683.

Why NOT to Dispute Credit Reports

Many credit repair companies advise their clients to dispute accounts on their credit report, telling them the accounts will be removed from their report. That is horrible advice. Here's why:


  • When you dispute a credit account, lenders are now required to underwrite loans manually, rather than using the software that allows higher debt-to-income ratios. If a borrower is approved for a loan by the software with a 50% debt-to-income ratio and they have disputed an account, the manual underwriting guidelines say that the debt-to-income ratio must be lowered to:
    • 36% for conventional loans
    • 41% for VA loans
    • 43% for FHA loans
  • If you dispute an old, unpaid collection account, the collection company will now know you are trying to improve your scores, and they may start trying to collect from you again. Your credit scores will drop.
Never advise anyone to use a credit repair company. Everything you can possibly do to raise your credit score is available for FREE from The Mortgage Experts. Give us a call for the details.

All the really cool real estate agents send their clients to the video library on our web site.  Here is the link:
http://www.mtgsupportservices.com/Mortgage_Video_Tips.html

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

If you want your loan to close, call us at 303-345-3683.

The REAL Debt-to-Income Ratios

We received a number of calls in the past few weeks from prospective home buyers who had been told by various lenders that they were unable to qualify for a mortgage because their debt-to-income ratios (DTI) were too high. Most of them had been misinformed.

Here are the real debt-to-income ratio numbers:

  • FHA loans do not have a maximum DTI ratio. With good credit, borrowers are commonly approved with a DTI of 50% or slightly higher.
  • VA loans do not have a maximum DTI ratio. With good credit, borrowers are commonly approved with a DTI of 50%.
  • Conventional loans have a maximum DTI of 50%.
Check out the video library on our web site for more detailed information on DTI ratios. Here's the link:

http://www.mtgsupportservices.com/Mortgage_Video_Tips.html

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

If you want to be sure your loan is going to close, call us at 303-345-3683.