Tip Income: How It Can Be Counted as Qualifying Income

For those in the service industry, getting tips certainly helps the overall pay. Most people who do earn tips work in a restaurant, hotel or similar industries. But can it be counted when helping to qualify for a new mortgage? We recently spoke about various types of income but getting tips is a bit different […]

Short Term? Long Term? Why Your Loan Choice Matters

Deciding on which home loan to take is usually a matter of choosing an interest rate. But, especially for those who have never financed a home before, there are many more things to decide on besides the rate. Sure, the rate is important, but you might be surprised at the array of loan choices available […]

The Dangers of Trying to Prequalify Yourself

Sometimes the term ‘prequalify’ is used incorrectly in the mortgage world. At least as it relates to those not directly involved with home loan lending. And it can be a bit disconcerting, especially with multiple non-lender sites that ‘prequalify’ someone without ever even speaking with an experienced loan officer. Trying to fly solo in this […]

What Counts in Your Debt Ratios

Debt ratios are utilized by lenders during the loan approval process. It’s an important piece, just one of several. Other factors such as credit, employment and assets are also pieces of the approval puzzle. Debt ratios on the other hand are the primary tool to determine affordability. Today, most loan programs set the guidelines for […]

The ABCs of Financing a Rental Property

Financing a rental property is much like financing a primary residence or vacation home. The funding sources are pretty much the same and most lenders follow the same general set of guidelines. Most such loan programs are underwritten to standards set by Fannie Mae or Freddie Mac, although there are also other lenders who offer […]

Selling Loans: Why It’s a Good Thing

What many borrowers don’t realize is how mortgage lenders “fund” a home loan. Funding essentially means providing the money needed to create a new mortgage. It’s probably easy to think that when someone applies for a mortgage, the lender reaches back into its bank vault and sends the money over to the settlement agent. But […]

5 Things You Can Do to Ensure a Smooth Closing

From the outside looking in, getting a mortgage loan from application to final closing looks fairly straightforward. You apply for a loan, submit it, the lender looks at it, approves it then orders final closing papers. Once you submit your application, it gets pretty quiet on your end. But on the other end, there’s a […]

Want to Be a Landlord? Know How It Will Affect Your Debt Ratios

One of the most consistent and safe investments continues to be real estate. Yes, there are always ups and downs but over time real estate as an investment asset is hard to beat. Flipping houses was a fad several years ago when No-Doc loans and loans for those with damaged credit were everywhere. Yet experienced […]

Why Working Virtually With Your Loan Officer is a Smart Move

Wondering how your new mortgage loan will be handled now that many of us have been officially considered “non-essential?” Well, for one, the mortgage industry is up and running regardless of any status. Yes, there are many who are currently in a work-from-home status and don’t have an official office to go to, at least […]

FHA Cash Out Refinance: What You Should Know

The FHA home loan program is by far the most popular financing option for first time buyers. Why? First, the low down payment is very attractive. FHA loans only need a down payment of just 3.5% of the sales price of the home. Second, qualifying for an FHA loan is a bit easier as credit […]