Save time and stress when using the Internet to find your next home.
The internet has made it much easier for people search for homes and Real Estate information than ever before however the sheer volume of information can make it difficult to use the internet effectively.
There are few free technologies and tips that can make can a big difference in your experience while researching Real Estate online.
First is Google’s email solution which is www.Gmail.com. Go and set up a new email account before you start your search and use this email to sign up for Real Estate sites and to have listings delivered to. This will keep all of your Real Estate information in one place and keep it from interrupting your business or personal email.
In addition to the free email Gmail also supplies you with a free telephone from within your account which allows you to make calls to anywhere in the United States and still keep your home and cellular phone number private.
There is also another free service that can help you in your Real Estate search which is Google Alerts. These are included in your Gmail account and can be set to deliver any keyword information you choose to your Gmail account on a daily basis such as “Levittown Homes For Sale".
If you are going to use the Google search engine to search for homes be sure to click the advanced search link to the right of the Google Search Bar which will allow you to pinpoint exactly what you are looking for in your searches and just as importantly what you are not.
It’s very important to know what your credit report looks like as you begin to look for Real Estate and unlike free credit report .com which is anything but free www.annualcreditreport.com is actually a free site created by the three major search engines where you can get copies of all three of your credit reports at no charge and with no credit card required once a year.
A final tip that can save you hours while searching online is when visiting popular Real Estate sites like www.realtor.com or www.zillow.com to review properties try right clicking on the property and then click open in new tab or window. This will allow you to look at multiple properties at the same time and keep your search results open so you don’t have to use the back arrow to try to find the list of properties you just pulled up.
Using these free technologies will help make your online Real Estate search much more productive and limit the time and stress associated with trying to negotiate the internet.
Contact The Mortgage Mark with any questions! http://www.themortgagemark.com
mark@themortgagemark.com
Friday, November 12, 2010
Friday, November 5, 2010
7 Requirements of Mortgage Verification and Validation
Verification and Validation – how it can affect your loan.
Today’s economic crisis has taught mortgage lenders one huge lesson they are all living by - verify and validate every loan file. Documentation – sounds like an easy task, but simply turn the clock back just a few years to the days of stated income loans, no income loans and even no income, no assets, no doc loans (just give me a high credit score) and you have the reason we now live in a Full Documentationworld. Did these loans make sense? Opinions vary, but eliminating as product that was intended for self employed borrowers has restricted business owners from tapping needed equity to stay operational. Ask any business owner you know what they think the chances are of qualifying for a loan would be today.
Below are 7 items that must be verified and validated these days when applying for mortgage financing:
Employment – Even after a loan has been cleared to close, telephone confirmation of employment is now routine just before a loan is scheduled to fund. In other words, don’t quit your job!
Income – 30 days worth of pay stubs. Previous two years W 2’s. If you show any kind of business income or loss, last two years tax returns (business and personal). Signed 4506-T forms at loan application allow lenders to order tax transcripts from the IRS to match up to your income… And they all order them. If you show a loss on your tax returns tell your loan officer upfront and save yourself frustration. This is not always a deal killer but will affect your debt ratio.
Assets – When a loan is run through automated underwriting it takes into account the assets that are stated. If you show money in checking, savings, 401k or any other investment, you will want to validate it by providing statements. Many times the final page or pages of the statements are blank. Include ALL pages of your statements regardless if they are blank. Note – if you are printing these documents from the internet, as a security measure, institutions do not include name or account number. This would not be acceptable documentation.
Deductions – Provide supporting documentation for payroll deductions such as child support, alimony, garnishments, 401k loans. Anything that affects your debt ratio must be documented which would include providing divorce and separation agreements and terms of of 401k loans.
Appraisals – This verification is done behind the scenes, but rest assured, even with all the new HVCC appraisal regulations, lenders validate appraisal figures through automated valuation models (AVM’s). The days of stretching home values in order to close a deal are long gone.
Gift Funds – Lenders want to see gift money comes from an acceptable gift source. And they way to show this is a paper trail… A bank statement from the gift source showing funds were available and a copy of the transaction transferring monies from the gift account to the borrower if deposited into borrowers account.
Earnest Money Deposit – Also referred to as the EMD. Many times this single item goes undocumented and causes a delay in clearing a loan to close. Sure we need a copy of the front of the check, but lenders want to see that the money was deposited before crediting it to the transaction.
These are just a few examples of documentation to gather when applying for a mortgage. This is just a guideline to use and lender requirements can and will vary, but providing the above documentation to your loan officer, you will greatly reduce the chances of frustration and delays in your loan closing. The mortgage process can be stressful enough these days. Supplying the required documentation the first time a loan is submitted to underwriting will increase the chances of a stress free closing.
Contact The Mortgage Mark with any questions!
www.themortgagemark.com mwilkins@capitalfmc.com
Today’s economic crisis has taught mortgage lenders one huge lesson they are all living by - verify and validate every loan file. Documentation – sounds like an easy task, but simply turn the clock back just a few years to the days of stated income loans, no income loans and even no income, no assets, no doc loans (just give me a high credit score) and you have the reason we now live in a Full Documentationworld. Did these loans make sense? Opinions vary, but eliminating as product that was intended for self employed borrowers has restricted business owners from tapping needed equity to stay operational. Ask any business owner you know what they think the chances are of qualifying for a loan would be today.
Below are 7 items that must be verified and validated these days when applying for mortgage financing:
Employment – Even after a loan has been cleared to close, telephone confirmation of employment is now routine just before a loan is scheduled to fund. In other words, don’t quit your job!
Income – 30 days worth of pay stubs. Previous two years W 2’s. If you show any kind of business income or loss, last two years tax returns (business and personal). Signed 4506-T forms at loan application allow lenders to order tax transcripts from the IRS to match up to your income… And they all order them. If you show a loss on your tax returns tell your loan officer upfront and save yourself frustration. This is not always a deal killer but will affect your debt ratio.
Assets – When a loan is run through automated underwriting it takes into account the assets that are stated. If you show money in checking, savings, 401k or any other investment, you will want to validate it by providing statements. Many times the final page or pages of the statements are blank. Include ALL pages of your statements regardless if they are blank. Note – if you are printing these documents from the internet, as a security measure, institutions do not include name or account number. This would not be acceptable documentation.
Deductions – Provide supporting documentation for payroll deductions such as child support, alimony, garnishments, 401k loans. Anything that affects your debt ratio must be documented which would include providing divorce and separation agreements and terms of of 401k loans.
Appraisals – This verification is done behind the scenes, but rest assured, even with all the new HVCC appraisal regulations, lenders validate appraisal figures through automated valuation models (AVM’s). The days of stretching home values in order to close a deal are long gone.
Gift Funds – Lenders want to see gift money comes from an acceptable gift source. And they way to show this is a paper trail… A bank statement from the gift source showing funds were available and a copy of the transaction transferring monies from the gift account to the borrower if deposited into borrowers account.
Earnest Money Deposit – Also referred to as the EMD. Many times this single item goes undocumented and causes a delay in clearing a loan to close. Sure we need a copy of the front of the check, but lenders want to see that the money was deposited before crediting it to the transaction.
These are just a few examples of documentation to gather when applying for a mortgage. This is just a guideline to use and lender requirements can and will vary, but providing the above documentation to your loan officer, you will greatly reduce the chances of frustration and delays in your loan closing. The mortgage process can be stressful enough these days. Supplying the required documentation the first time a loan is submitted to underwriting will increase the chances of a stress free closing.
Contact The Mortgage Mark with any questions!
www.themortgagemark.com mwilkins@capitalfmc.com
Thursday, November 4, 2010
Mortgage Definition: Stability Of Income
Stability Of Income — A Simple Definition:
One of the factors that underwriters will consider on a loan application is “stability of income”. The stability of income risk factor is one where the underwriter will attempt to measure how likely it is that your income may continue based on what your previous work history looks like.
Stability Of Income — An Expanded Definition:
While there may be a wide range of things an underwriter can consider regarding the stability of income, there are a few specific things that an underwriter will look at when considering the stability of income.
These include:
Gaps in Employment – If there are any gaps in employment that are longer than one month, be ready to provide an explanation. If you happen to be a seasonal worker, allowances can be made but be ready to provide documentation.
The Probability Of Continued Employment — What are the chances of continued employment at your current employer? What are the chances that you can get a similar job based on your qualifications, previous work history, education and location.
Frequent Job Changes — If you have a history of changing jobs, it isn’t necesarily a bad thing as long as you can document that you have changed jobs for advancements, more money, benefits or other related topics. Remember, the underwriter is looking at the stability of income – not necessarily how long you have been at one company.
Stability of income is one of the important items that an underwriter will consider when you apply for a loan. By keeping in mind the simple items of: gaps in employment, the probability of continued employment and frequent job changes you can be ready to provide explanations — before the underwriter even asks for them.
Contact The Mortgage Mark with any questions!
http://www.themortgagemark.com mwilkins@capitalfmc.com
One of the factors that underwriters will consider on a loan application is “stability of income”. The stability of income risk factor is one where the underwriter will attempt to measure how likely it is that your income may continue based on what your previous work history looks like.
Stability Of Income — An Expanded Definition:
While there may be a wide range of things an underwriter can consider regarding the stability of income, there are a few specific things that an underwriter will look at when considering the stability of income.
These include:
Gaps in Employment – If there are any gaps in employment that are longer than one month, be ready to provide an explanation. If you happen to be a seasonal worker, allowances can be made but be ready to provide documentation.
The Probability Of Continued Employment — What are the chances of continued employment at your current employer? What are the chances that you can get a similar job based on your qualifications, previous work history, education and location.
Frequent Job Changes — If you have a history of changing jobs, it isn’t necesarily a bad thing as long as you can document that you have changed jobs for advancements, more money, benefits or other related topics. Remember, the underwriter is looking at the stability of income – not necessarily how long you have been at one company.
Stability of income is one of the important items that an underwriter will consider when you apply for a loan. By keeping in mind the simple items of: gaps in employment, the probability of continued employment and frequent job changes you can be ready to provide explanations — before the underwriter even asks for them.
Contact The Mortgage Mark with any questions!
http://www.themortgagemark.com mwilkins@capitalfmc.com
Monday, November 1, 2010
Can I have 2 FHA loans at the same time?
Why would someone have two FHA loans at the same time? Here are the reasons and the exceptions that may allow someone to have 2 concurrent FHA Loans.
Increase in family size – There must be an increase in family size in which their current house can’t support the new family member(s). You will have to prove the increase. Also, you must have 25 percent equity in your current home or pay it down to 75% LTV (loan-to-value). An FHA approved appraiser must be used to determine such new value.
Relocation – If the borrower is relocating and it is established that they aren’t in reasonable distance from their current property. Keeping in mind that reasonable can be defined differently from any lender.
Note – If that borrower(s) returns back to the same area, they are not required to re-establish residency in that property in order to have another FHA insured mortgage.
Vacating a jointly owned property – A borrower my leave a property and be eligible for another FHA loan if the co-borrower is to stay in the same property that is being vacated.
A good example of this is because of a divorce and that the vacating spouse needs to buy a new home.
Non-Occupying co-borrower – If someone previousily co-signed for a family member or relative while using a FHA loan. This type of FHA loan is called a non-occupant co-borrower loan. This borrower would still be eligible to purchase their own home using a FHA mortgage.
Without meeting any of these requirements, a potential borrower would not be approved for a second FHA insured loan.
Contact The Mortgage Mark with any questions! mark@themortgagemark.com
www.themortgagemark.com
Increase in family size – There must be an increase in family size in which their current house can’t support the new family member(s). You will have to prove the increase. Also, you must have 25 percent equity in your current home or pay it down to 75% LTV (loan-to-value). An FHA approved appraiser must be used to determine such new value.
Relocation – If the borrower is relocating and it is established that they aren’t in reasonable distance from their current property. Keeping in mind that reasonable can be defined differently from any lender.
Note – If that borrower(s) returns back to the same area, they are not required to re-establish residency in that property in order to have another FHA insured mortgage.
Vacating a jointly owned property – A borrower my leave a property and be eligible for another FHA loan if the co-borrower is to stay in the same property that is being vacated.
A good example of this is because of a divorce and that the vacating spouse needs to buy a new home.
Non-Occupying co-borrower – If someone previousily co-signed for a family member or relative while using a FHA loan. This type of FHA loan is called a non-occupant co-borrower loan. This borrower would still be eligible to purchase their own home using a FHA mortgage.
Without meeting any of these requirements, a potential borrower would not be approved for a second FHA insured loan.
Contact The Mortgage Mark with any questions! mark@themortgagemark.com
www.themortgagemark.com
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