Archives for January 2010

THE NEW GOOD FAITH ESTIMATE: PART 1

In theory, the GOOD FAITH ESTIMATE (GFE) is an important and helpful document. In theory. This post had me thinking and wondering if  the new GFE is a positive step for the industry.
The main purpose is to give borrowers, at the beginning of the loan process, when they are figuring out their budget to purchase [...]

31 January 2010 | Closing Costs, Good Faith Estimate | No Comments

IS IT EASY TO OBTAIN A MORTGAGE?

According to this writer it is a one, two, three step process.
True?  Maybe, but in general not so much. A good, knowledgeable realtor could be a good referral source in finding a good loan officer.  The key word is good. Check.
Having a “decent” salary and good credit is pretty relative.  And it’s relative to the [...]

16 January 2010 | Credit (Score), Down Payment, First Time Homebuyers, Income, Real Estate (Agents), Reserves/Assets | No Comments

TWO VERSIONS OF A MORTGAGE REFINANCE

Had a thought regarding a recent post. Something I always like to point out to borrowers who inquire about refinancing.
Let’s look at my perspective. If we assume a loan amount of $300,000 and a current rate at 6.00%. The principal and interest payment would be $1,799. Principal and interest.  Principal, assuming value stays the same [...]

15 January 2010 | Interest Rate, Refinancing | No Comments

Why Refinance Your Mortgage? Lower Payments?

Here is a post that demonstrates one reason to refinance:  lower the monthly payment. If you compare the monthly payment (assuming the loan amount were the same, which it is not because, as we know, over time, the loan amount is being paid down), with a new, lower interest rate, the principal and interest payment [...]

13 January 2010 | Closing Costs, Interest Rate, Refinancing | 2 Comments

CONDO’S SEEING A LIFELINE

It’s been no secret that condominium complexes have been a sinking ship. In addition to a dearth of buyers, lenders have been running away from condos (mostly because of…a dearth of homebuyers).
Now that (hopefully) the housing market is starting to show signs of improvement, condo lending should also improve. Slowly.
Fannie Mae recently reported that they [...]

12 January 2010 | Programs | No Comments

Getting a Mortgage with No Credit

For younger borrowers, a lack of credit (history) can hurt.
When a loan officer reviews a borrower’s history, the first, and most important, factor is credit. I recently read an article that focused on this question. Even if a borrower had no credit cards, no automobile payment history, and/or other history regarding credit that would appear [...]

12 January 2010 | Credit (Score), First Time Homebuyers, Pre-Approval | No Comments