Credit scoring can be somewhat of a mystery to the everyday consumer. Borrowers typically have a pretty good handle on the status of their credit. Bills come in every month and they’re paid on or around the due date. Sometimes though those accounts aren’t paid when due and if a payment is made more than […]
The Keys to a Smooth Jumbo Closing
Jumbo loans, loans whose loan amounts exceed local conforming loan limits, are approved in much the same manner as most any other loan program. There are some basic differences and we’ll review them for you but overall, it’s a very similar process. Jumbo loans typically ask for higher credit scores compared to other loan programs, […]
Why Lenders Ask You to Sign IRS Form 4506-T
One of the major changes in lending guidelines made nearly 10 years ago was making sure mortgage lenders verified income. Up until around 2008-2009, the proliferation of so-called “stated” and “no doc” loans made getting a loan approval almost a no-brainer. Such loans also contributed to the housing crisis as those who wouldn’t normally be […]
Why Experienced Loan Officers Form Relationships With Third Party Providers
Forming relationships either personal or in business is key to an open dialogue when issues arise. For example when a couple first start getting to know one another, how each one handles adversity of any degree when it comes is extremely important. Does one party get frustrated and angry? Maybe the silent treatment? A solid […]
What Happens When Your Loan “Funds”
The one term that loan officers like to hear is the word “fund.” Why? Because it signals the loan approval process has come full circle and the loan is officially closed. There are multiple stages in the loan approval process and each stage must be completed before the next can be taken on. Initially, it’s […]
What Happens During Your 30 Day Escrow Period
Your efforts have finally paid off. You submitted your loan application some time ago and received your preapproval letter. Your credit was reviewed and income and assets verified. Shopping for a home with a preapproval letter in hand gave you the confidence you needed knowing that all you need next is a property address. You […]
Is There Such a Thing as a Perfect FICO Score?
There are those who strive to get their credit scores as high as possible. Even way beyond the minimum credit score for many home loan programs. Some programs that ask for a minimum score of say 720 or 740 are above the minimum scores for other programs such as 680 or even 620. But for […]
3/1, 5/1, and 7/1 Loans Explained
Mortgage loans fall into two basic categories, fixed and adjustable. A fixed rate loan, by far the most popular choice, is a loan program where the interest rate never changes. A fixed rate loan allows borrowers to more easily plan their financial future because they know what the mortgage payment will be for years to […]
Fed Approves Rate Cut: What’s Next?
Today, the FOMC decided to cut rates by 0.25 percent, as many investors had expected. The next scheduled meetings are October 29-30 and December 10-11. What is the forecast? That’s really too far out to tell but the Fed’s patience with rates over the past few years has been showing. Another move to lower rates […]
First Time Home Buyers? Here’s Your 6 Month Planner
Buying and financing your first home has a lot of moving parts. There are multiple people involved, some you will talk to and many that you won’t. From an appraisal to a credit report to title insurance and more, your loan officer will make sure all the necessary documentation is included in your loan file. […]
