Monday, November 18, 2013

Loan Approvals are Easier than Ever

Unlike many lenders, we sell our loans directly to Fannie Mae. That means we don't have any lender overlays.  Overlays are additional underwriting guidelines that lenders add to the Fannie Mae underwriting guidelines, making it harder to get approvals.

Some examples of overlays are:
  • minimum credit score of 640 instead of the 620 that Fannie Mae requires
  • limiting the number of financed properties to 4 instead of the 10 that Fannie Mae allows
  • requiring the seller to own the property for 90 days before selling it
Remember, we do not have these overlays.  We only require a 620 credit score, we allow up to 10 financed properties, and we don't require the seller to own the property for 90 days before selling it.

Are you using a lender who does have overlays?  Why would you do that?

Have questions about anything related to a mortgage?  Give us a call and see why they call us The Mortgage Experts.  

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!  Call us if you want to use the best lenders in Colorado!  

Make sure you check out our web site:

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.

Monday, November 11, 2013

Loans for People with More Than 4 Properties

We sell our loans directly to Fannie Mae now, so that means we can sell loans to people with more than 4 properties.  Fannie Mae allows borrowers to have up to 10 financed properties, and so do we.

Have questions about anything related to a mortgage?  Give us a call and see why they call us The Mortgage Experts.  

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!  Call us if you want to use the best lenders in Colorado!  

Make sure you check out our web site:

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.

How to Raise Your Credit Score

How to Raise Your Credit Score

Things to do:
  • Pay your bills on time.  Every time you pay a bill 30 days late, it lowers your score.  The more recent the late payment is, the more that late payment lowers your score.
  • If you missed a payment, get current on that account.  If you are past due on an account, just making the late payment – and not making the current month’s payment – will continue to lower your score.
  • Keep balances low on credit cards and other revolving credit accounts.  
    • If your balance is more than 70% of your credit limit, it lowers your score the most.
    • If your balance is 50% - 70% of your credit limit, it lowers your score a bit less.
    • If your balance is 30% - 50% of your credit limit, it lowers your score even less.
    • If your balance is below 30% of your credit limit, it will improve your score.
  • When you review your credit report, you will see a list of things that are lowering your credit score.  Work on those things to raise your score.  The reasons your score is not perfect are listed in order, according to the impact they have on your score. Fixing the first two will raise your score the fastest.
  • Some lenders (including us) have credit analysis software.  It will tell you exactly what to do to raise your scores – it also tells you how many points your scores will go up.

Things NOT to do:
  • Do not close accounts.  The longer your accounts are open, the higher your score will be.
  • Do not pay off old collection accounts or old charge off accounts.  Paying off an account that no one is actively trying to collect will change the “date of last activity” from the old date to the current date, and lower your score, even though it is now paid off.
  • NEVER pay anyone to “repair” your credit.  They are only ripping you off!  You can fix errors on your report by yourself – for free. Use a lender who will show you how, and who will help you – for free. 
Have questions about anything related to a mortgage?  Give us a call and see why they call us The Mortgage Experts.  

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!  Call us if you want to use the best lenders in Colorado!  

Make sure you check out our web site:

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.

Wednesday, November 6, 2013

3% Down and No Mortgage Insurance

Did your lender tell you that 3% down conventional loans are going away on November 16?  Maybe for other lenders, but not for us.

The Colorado Housing and Finance Authority (CHFA) has a conventional loan program that only requires 3% down.  It will NOT go away on November 16.  

By the way, there is NO mortgage insurance required with these loans!

Here’s what you need to know:
  • Only 3% down and the down payment can be a gift from a relative
  • There is no mortgage insurance
  • 30-year, fixed rate mortgage
  • This is for owner-occupied properties only
  • The borrower cannot own any other properties
  • The borrower does NOT have to be a first-time homebuyer
  • Minimum credit score of 680
  • Maximum purchase price in the Denver-Metro area is $375,000. Boulder County is $417,000.
  • Maximum household income in the Denver-Metro area is $79,300 for a 1-2 person household and $91,100 for a 3+ person household.  Boulder County is $93,800 for 1-2 people and $107,800 for 3+ people.
The important thing to remember is that not every lender is approved by CHFA to sell these loans.  We are one of the lenders that is approved to sell 3% down loans, along with all kinds of other loans.  That's why we are some of the top producing lenders in Colorado.

Have questions about anything related to a mortgage?  Give us a call and see why they call us The Mortgage Experts.  

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!  Call us if you want to use the best lenders in Colorado!  

Make sure you check out our web site:

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 More Lender Overlays!

We just started selling loans directly to Fannie Mae and Freddie Mac.  What does this mean for you?  

No more lender overlays!!!  Lender overlays are those nasty little extra underwriting guidelines that lenders add to the Fannie Mae guidelines - the things that prevent you from closing deals.  

Here are some examples:
  • Conventional loans down to a 620 credit score are OK
  • Up to 10 financed properties are OK
  • FHA loans down to a 580 credit score are OK
  • VA loans down to a 620 credit score are OK
  • Conventional loans with ALL of the down payment coming from a gift from a relative are OK.
We still have to comply with the mortgage insurance overlays, but in most cases, the mortgage insurance companies will insure a loan if Fannie Mae agrees to buy it.

Have questions about anything related to a mortgage?  Give us a call and see why they call us The Mortgage Experts.  

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!  Call us if you want to use the best lenders in Colorado!  

Make sure you check out our web site:

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.

Gift Money for the Down Payment and Closing Costs

Can someone other than a borrower pay for the borrower's down payment and closing costs?

If a borrower does not have enough money to pay for the required down payment and closing costs by themselves, it is permissible to have a relative give the borrower the money as a gift.

Here are the rules:

With an FHA or VA loan, the entire down payment and money for closing costs can come from a relative.  The gift donor must sign a letter stating that the funds do not have to be paid back.  The donor must be able to show that they are able to provide the funds (a bank statement showing the money came from their account is sufficient), and the borrower must show receipt of the funds by providing a bank statement.

With a conventional loan, the rules are slightly different.  A relative can give a gift to the borrower for the down payment and closing costs, but the borrower must contribute the minimum required down payment themselves (usually 5%).  The exception to this is when the gift is for at least 20% of the purchase price. Then, the relative can give the borrower the entire down payment and closing costs and the borrower doesn't have to contribute any money at all.  Again, the donor needs to sign a gift letter stating that the money does not need to be paid back, and a paper trail showing the money coming from the donor's account into the borrower's account must be provided.

Have questions about anything related to a mortgage?  Give us a call and see why they call us The Mortgage Experts.  

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!  Call us if you want to use the best lenders in Colorado!  

Make sure you check out our web site:

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.

When Does Mortgage Insurance Go Away?

We posted this a couple months ago, but there is still a lot of confusion about when mortgage insurance goes away, so we thought it would be a good idea to post it again.

If the loan is a conventional loan (meaning it is NOT an FHA loan), then mortgage insurance goes away once the borrower has 22% equity in the property (based on the purchase price).  

A borrower can request that the mortgage insurance go away if they have 20% equity in the property, but they will need to pay for a new appraisal to prove that they have 20% equity.  The equity in this case is based on the appraised value, not the original purchase price.  The lender does not have to honor the request for the mortgage insurance to go away early, but they usually do.

For FHA loans, the mortgage insurance never goes away if the borrower put less than 10% down, and it goes away after 11 years if they put 10% or more down.  There is no option to get a new appraisal and have the mortgage insurance go away early with FHA loans.

It is important to note that the old rules for FHA mortgage insurance are still in effect for FHA loans that had a case number assigned on or before June 3, 2013.  In that case, the mortgage insurance goes away once the borrower has 22% equity in the property, or after 5 years, whichever is later.

Have questions about anything related to a mortgage?  Give us a call and see why they call us The Mortgage Experts.  

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!  Call us if you want to use the best lenders in Colorado!  

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.

Monday, October 14, 2013

FHA Loan Now and Conventional Loan Later?

As you probably know by now, mortgage insurance never goes away with FHA loans, unless you put 10% or more down.  Even with 10% or more down, it still lasts for 11 years.  This rule went into effect in June, and it really makes FHA loans pretty unattractive for a lot of people.  

The one real big advantage of FHA loans is that everyone pays the same interest rate, regardless of credit scores.  With conventional loans, the lower your credit score, the higher your interest rate, which makes conventional loans pretty unattractive for a lot of people.

Buyers and agents are always asking us if it makes sense to get an FHA loan to buy a house, and then refinance out of the FHA loan once the borrower's credit scores are higher.  

Although that might seem like a good idea, we never recommend that anyone plan to finance their house with that plan in mind.

Here's why:
  • When you refinance (regardless of the type of loan) there are closing costs involved.  The closing costs for a refinance are no cheaper than they are for a purchase, so you would in effect be paying twice the closing costs if you go into a purchase transaction with the intent of refinancing out of the original loan.  That is a complete waste of your money.
  • There is no guarantee that your credit scores will be higher in the future.  If you don't pay your bills now, why would you suddenly start paying them after buying a house?
  • There is no guarantee that interest rates will be low enough to save you any money at all when it comes time to refinance.
  • No one knows what the underwriting guidelines are going to be when it comes time to refinance.  You might not even qualify for a refinance.
Bottom line is that you should never get a loan with the intention of getting out of that loan and getting another loan to save money. You might not be able to do it.

There are many unethical lenders who will tell you that getting an FHA loan and then refinancing out of it into a conventional loan is a good plan.  They are mistaken, and they tell you it's a good idea so they can double their income by selling you two loans.  It is a horrible plan, unless you have a very strong appetite for risk, and you don't mind losing money if your gamble doesn't pay off.

Have questions about anything related to a mortgage?  Give us a call and see why they call us The Mortgage Experts.  

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!  Call us if you want to use the best lenders in Colorado!  

Make sure you check out our web site:

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.

Tuesday, October 8, 2013

October 8 Update: Government Shutdown and Loan Closings

Here is the latest information about how the government shutdown is affecting loan closings.

The IRS is not processing requests for tax transcripts, which are normally required to be in the loan file before the loan can be underwritten.  However, lenders are temporarily underwriting loans without having tax transcripts in the file.  Most lenders are allowing loans to close without the transcripts, but a few are still requiring the transcripts to be in the file before issuing the final approval.  Just about all lenders are now requiring that copies of the borrower's actual tax returns (not the tax transcripts) be in the file before they will approve the loan.

All loans are run through various fraud databases (this is not new - it has been going on for years).  If an alert is issued after the fraud check, saying that the Social Security number of the borrower might be fraudulent, then almost all lenders are requiring a Social Security verification before allowing the loan to close.  The problem is that the Social Security Administration is not processing the verifications.  So, for the time being, if a lender needs to verify a borrower's SSN, the loan cannot close.  Almost all lenders are following this policy, although a very few are not.

The only loans that are completely stopped are USDA rural loans.  Conventional loans, FHA loans, VA loans, and CHFA loans are proceeding normally, with the exception of the tax transcript and Social Security number issues.

Have questions about anything related to a mortgage?  Give us a call and see why they call us The Mortgage Experts.  

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!  Call us if you want to use the best lenders in Colorado!  

Make sure you check out our web site:

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.

Monday, September 23, 2013

Don't Forget the Property Tax Credit

Now that we're almost into the fourth quarter of the year, it's a good time to remember that the property tax credit the seller gives to the buyer will affect the amount of money the buyer needs for closing costs. 

At the closing, the seller will credit the buyer one day of taxes from January 1 until the closing date.  If the taxes on a property are $2,400 a year, the tax credit will be about $2,000 if the closing is at the end of October, and about $200 more every month after that.

If the buyer is asking the seller to pay some of the buyer's closing costs, the tax credit needs to be included in the calculations when deciding how much to ask the seller to pay.  If the buyer doesn't consider the tax credit and asks for more than the buyer will actually have to pay at closing, the seller gets to keep the excess money.  Good for the seller, but bad for the buyer.

If you're going to be asking a seller to pay some of the closing costs, make sure you ask your lender if they have considered the tax credit when they tell you the amount to ask for.

Have questions about the property tax credit or anything else related to mortgages?  Then give us a call and see why they call us The Mortgage Experts.

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!  Call us if you want to use the best lenders in Colorado!
 
Make sure you check out our web site:
 
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.

Tuesday, September 17, 2013

Jumbo Loans with Only 10% Down

Did you know that we sell jumbo loans (loans for more than $417,000) and we only require 10% down?  Did you know that we have some of the lowest closing costs around for jumbo loans?

Need a jumbo loan for a client or for yourself?  Give us a call.

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!  Call us if you want to use the best lenders in Colorado!
 
Make sure you check out our web site:
 
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.

Thursday, September 12, 2013

Are 3% Down Loans Going Away?

You may have heard that 3% down conventional loans are going away on November 16.  That's true, except when it's not.  Here's when it's not true:

The Colorado Housing and Finance Authority (CHFA) has a conventional loan program that only requires 3% down.  It will NOT go away on November 16.

Here’s what you need to know:
  • Only 3% down and the down payment can be a gift from a relative
  • There is no mortgage insurance
  • 30-year, fixed rate mortgage
  • This is for owner-occupied properties only
  • The borrower cannot own any other properties
  • No condos, but townhouses are OK
  • The borrower does NOT have to be a first-time homebuyer
  • Maximum purchase price in the Denver-Metro area is $375,000.  Boulder County is $417,000.
  • Maximum household income in the Denver-Metro area is $79,300 for a 1-2 person household and $91,100 for a 3+ person household.  Boulder County is $93,800 for 1-2 people and $107,800 for 3+ people.
The important thing to remember is that not every lender is approved by CHFA to sell these loans.  We are one of the lenders that is approved to sell 3% down loans, along with all kinds of other loans.  That's why we are some of the top producing lenders in Colorado.

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!  Call us if you want to use the best lenders in Colorado!
 
Make sure you check out our web site:

 
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.