Archive

Archive for the ‘Uncategorized’ Category

The down low on using GIFT funds for down payment…


Many types of mortgage financing allow for GIFT FUNDS to be used towards down payment.  The basics?
* Gift funds need to come from a blood relative (“donor”)

* The “donor” needs to be willing to provide the “source” of the funds.  This can be a bit tricky as many times the relative does NOT want to provide bank statements or asset statements to show where the money came from.  There is no way around this so prepare for it from the beginning.

* The “donor’s” bank statement can not show any LARGE deposits into it in the statement period.  The reason for this is the underwriter wants to see that the “gift funds’ are not borrowed funds requiring a repayment.

* The “donor” will sign a gift letter stating they are gifting the funds from Account “X” and that the funds do not have to be repaid.

* Those funds should then be wired directly to the escrow company handling the transaction.  This helps to avoid having to “paper trail” the funds through the borrowers account and again to escrow.  If the “donor” sends the funds directly to the escrow company it eliminates this step.

Remember, on FHA loans, 100% of the down payment AND closing costs can be gifted.

Be sure to check on the specific type of CONVENTIONAL loan you are qualified for as to the allowable “gift funds” per your program.

Ready to get started?  You can apply ONLINE conveniently at www.fcfs.net

If you have any questions, feel free to contact us at 602.294.9288

or E-mail:  mortgagedr@fcfs.net

Post your question on Facebook 

Having a dream is good, Owning one is better!

Leslie Nilsen

Owner/Broker

First Class Financial Services, proudly Arizona mortgage lending since 1999.

602.294.9288(O)

602.294.9830(F)

www.fcfs.net

MB#0902810

NMLS #162494

AZDFI Loan Officer # LO-0911453

 

 

 

Advertisements

*** Underwater on your mortgage? GOOD NEWS… HARP “2.0” to roll out 11/15/2011!


 

The specifics of the changes are not yet clear however…

First, you need to know if your loan is Fannie Mae or Freddie Mac owned (ONLY eligible on loans originated 5/2009 or prior).  You can find out by going to these links:

www.fanniemae.com/loanlookup

AND

https://ww3.freddiemac.com/corporate/
Take note of which entity you determine currently owns your loan.  Your loan officer will need this.

Second, it is pretty clear that the new roll out will have NO RESTRICTION as to appraised value! I know! I was excited too! This means, regardless of your value, if Fannie Mae or Freddie Mac own your loan and if you qualify, you can refinance!

With rates at historic levels, this will bring out the masses so be prepared!  Find out who owns your loan and have the following items ready:
Paystubs for the last 30 days

Statements for ALL asset accounts (all pages)

2010/2009 W2s

Mortgage coupon/statement for your current mortgage

2 forms of ID for all borrowers.

Currently, the HARP loan requires you refinance ONLY the way you originated the loan (for example, if it was owner occupied when you got the current loan, you can ONLY refinance if the property is still your primary residence)  I do not know if this requirement will change.

The changes are expected to roll out on 11/15/2011 for December 1 submissions.   I will advise on Monday 11/15 about the changes.  Stay tuned!

Having a dream is good, owning one is better!

 

Leslie Pelletiere, Owner

First Class Financial Services, proudly mortgage lending since 1999!

602.294.9288(O)

602.294.9830(F)

http://www.fcfs.net

MB#0902810

NMLS #162494

AZDFI Loan Officer # LO-0911453

Categories: Uncategorized

AZ Mortgage Question of the Day: How long do I need to be out of an Arizona bankruptcy, short sale or foreclosure to be eligible to mortgage a new home?


AZ mortgage Question of the Day:

How long do I need to be out of an Arizona bankruptcy, short sale or foreclosure to be eligible to mortgage a new home?

Here is a generic guideline – keep in mind that many lenders have additional requirements depending on their own guidelines:

Bankruptcy:

Chapter 7:

FHA – 2 years with re-established credit / 1 year if bankruptcy was from extenuating circumstances and have shown substantial ability to manage new affairs since. A minimum 640 score.

CONVENTIONAL – 4 years and a minimum 680 credit score.

Chapter 13:

FHA – 1 year has elapsed since filing, all payments have been made to the trustee on time and ONLY with trustee prior approval.

CONVENTIONAL – 4 years and a minimum of a 680 score. All payments have been made to the trustee on time and ONLY with trustee prior approval.

Foreclosure:

FHA – * 3 years has elapsed from the finalized date of the foreclosure.

CONVENTIONAL –

* 3 years if borrower can prove extenuating circumstances. Additional occupancy, credit score and down payment requirements.

* 7 years if financial mis-management. Additional occupancy, credit score and down payment requirements.

Short Sale:

FHA * 3 years has elapsed from the finalized date of the short sale.

CONVENTIONAL – * 4 years – Additional occupany, credit score and down payment requirements.

One additional note to consider: Many lenders will NOT follow these guidelines if they had their own prior loan included in the bankruptcy, foreclosure or short sale so keep this in mind when applying. All of this information is in a generic sense and can only be guaranteed with an approval directly from your lender. This is another reason that applying and getting loan approved BEFORE you start home shopping is so important.

Having a dream is good, owning one is better!

Leslie Pelletiere, Owner

First Class Financial Services, proudly mortgage lending since 1999!

602.294.9288(O)

602.294.9830(F)

http://www.fcfs.net

MB#0902810

NMLS #162494

AZDFI Loan Officer # LO-0911453

And so it begins… the exploration of the insides of credit scores


This will begin a long journey down a path regarding credit scores.  Via blogging AND future webinars,  I hope to provide some insight as to the why’s, how’s, what if’s, etc. behind scoring.  Because it is so critically to lending these days, I will keep my personal feelings of it’s bogus”ness” out of it.

Posted today, 1/11/11, is an article from Yahoo Finance regarding the ability to get your credit score disclosure if you are not offered prime rates.   We already are required to disclose credit scores through lending however now we are required to advise what impact those scores had in determining your mortgage interest rates. 

For example:

Less than 720 score? Could impact your interest rate.

Less than 680 score? Impacts your interest rate.

Less than 660 score? Impacts your interest rate even more.

Less than a 640 score? Impacts your interest rate even more.

Less than a 620 score? No longer eligible for conventional financing. 

Now, what is your score and how do you improve it?

IF you have not applied for credit and been provided your scores through your application you can get a copy of your own credit report.  You are eligible for one FREE report per year.  Go to: http://www.annualcreditreport.com or call 1.877.322.8228 however, be advised that the FREE report will NOT include your score.   There is a small fee to obtain the report with your credit score included.  It’s worth the fee at least initially so you know where you start.

Now that you have your credit report, how do you read the darn thing? What is reported on it? How do you dispute what is reported? What do you need to do BEFORE you begin to tackle anything that is not correct?  What steps can you take to improve your score? What should you be careful of?

Stay tuned. We will cover all of these questions and more!

Categories: Uncategorized

Who should I get my mortgage loan with? Broker or Banker?


 I’m confused.  This seems like a simple question with a simple answer. 

There seems to be a misnomer regarding bankers and brokers.   Which is better? How do you  know?

1. First, who were you referred to?  Who did your “happy new homeowner” friend or co-worker get their loan through?

2. What kind of reputation does that banker/broker have? How long have they been in business?  Are they a local business or a behemoth guy?

3. Is the loan officer you are considering meerly an employee of the company or required to be licensed by the state they work in?   Do you want your loan officer to have to meet education requirements, have had a full background check and required to carry an individual lending license? Probably.

Loan officers of mortgage brokers are the only individuals required to maintain all of those items.

4. Do you want:

  • the access to many different types of loans?
  •  from many lenders?
  • at the best interest rate ?
  • and with the lowest fees?
  • Ok. Sorry. Silly question.

Bottom line? Referrals are always best.  You wouldn’t pick your doctor out of the phone book.  You probably shouldn’t do that with your loan officer either. 

Still not sure? Who is going to get the job done?   Start with-  which one returns your phone calls. (I know. Another silly one but my biggest client comment… “thank you for returning my call” ) How do they handle your application process?  If its sketchy here, it will only go downhill during the loan process.   Do they have the best interest rate WITH the lowest closing costs.  Compare the whole scenario. 

Of course, you know what MY answer would be…

Categories: Uncategorized

Thank you Canada!


Watch this video! Great!  —> Thank you Canada!

Categories: Uncategorized

Where are mortgage interest rates heading?


This is the question of the year right now.   Where are interest rates heading?

Everyone continues to want to watch the REAL ESTATE market to see when it will level off.  Everyone wants to wait to see when they will get the deal of the century.  Everyone is quoting the drop in values going into 2011.  Everyone is MISSING one critical element.  While they are waiting, watching and wondering… RATES ARE GOING UP!  My take? I was hoping you were waiting for my take.  My take is the same as it has always been.  I am a realist.  I deal with the things WITHIN my control.  I cannot control property values. I cannot control the real estate market. I cannot control mortgage interest rates.  What I CAN control is my ability to qualify for a loan.  IF I can qualify and IF I find a house I like at a fair price, I buy it.  I would hit myself over and over in the head,  if I tried to time the market  (which is impossible), missed the house of my dreams and ended up having to settle on a lesser home at a higher rate!

My humble advice…Perspective.  Unfortunately as I have gotten older, my dream of the grass being greenier on the other side of the fence has vanished.  THE GRASS IS NEVER GREENIER.  Deal with what is in your control.  Don’t wait. Find your dream home, offer a fair price and get a great (in the 4’s still) loan!

Regardless of the house your are in, when rates go over 5, you will wish you had bought when they were in the 4’s.  Trust me. I have done this long enough to have had HUNDREDS of clients say, “I wish I had done…when rates were… when I found that one house…”  Nike says “Just do it” for a reason!

Having a dream is good, owning one is better.

Leslie

Categories: Uncategorized