Frequently Asked Questions

New FHA Rules On Buyers With Student Loans

Up till now if you had student loans, a lender could use your current payment towards your debt ratios. On June 30th that will all change. Starting July 1st we will need to use 1% of your student loan balance as your payment. Example,  if you current payment is $54 per month but you owe [...]

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Keeping Kids Busy This Summer

Beat the Summer Doldrums There comes a time in every summer vacation when the blockbusters have been seen, the video games have been beaten, and the movie and television selections are stale—that's when parents and guardians everywhere hear a familiar: "We're bored!" So check out these budget-friendly activities to help you create a summer vacation [...]

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How to unplug on vacation

With the holidays upon us there are many who are taking vacations this time of year. When your work follows you on vacation, these tips will help you enjoy your time with less stress and office distraction: Set Up Smarter Out-Of-Office Messages Want to avoid the email and voicemail backlog upon your return? Inform your [...]

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Credit Scores vs. Interest Rates

I'm asked quite often what credit scores have to do with mortgage interest rates. Bottom line, a lot. Where's the Proof? You don't have to look much further than this chart, which shows what kind of interest rates you could get - based on your credit score. The data is pulled by myFICO, a division [...]

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What To Look For In A Lender

Four simple questions your lender should be able to answer. If they can't, run, don't walk, to one who knows. Odds are you are dealing with an "order taker" who knows nothing about the business. 1. What are mortgage interest rates baised on? The only correct answer is Mortgage Backed Securities or the Bond Market. [...]

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Be Sure And Insure Your Vacant Home

As the housing market continues to be slow, some homeowners choose to move on, whether to pursue a new job, downsize or simply relocate. But it's very risky financially to leave your home vacant unless you adjust your homeowners insurance accordingly. Some insurers may not pay claims if a home is vacant for 60 days [...]

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Why Get Pre Approved Before Looking For A Home?

Getting pre approved for your home loan is a free service. Most folks have found it helps in two ways. First, it helps you narrow down the homes to look at because it tells you what your future house payment will be. Second, a pre-approval letter from me can give you an advantage over other buyers when [...]

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How much house can I afford?

The amount of a loan for which you qualify is based on two different calculations. Using what are known as qualification ratios, lenders evaluate your income and long-term debts to determine a "safe" amount for your mortgage payments. A fairly standard ratio is 28/33. Certain mortgage plans sometimes use more liberal ratios-for example, the Fair [...]

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FHA Eligibility with Bankruptcy and Foreclosure

In the event of a foreclosure, the borrower has three years from the date the the home was resold by the lender until you are eligible for another FHA loan, unless the foreclosure was the result of extenuating circumstances beyond the borrower's control and the borrower has since established good credit. Chapter 7 bankruptcy requires [...]

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What are closing costs?

On the day you actually buy your new home, in addition to your down payment, the prepaid property tax and homeowners insurance premiums, you'll need cash for various fees associated with the purchase. These expenses are known as closing costs and are paid by both buyers and sellers.Some closing costs you pay up-front when you [...]

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3 Warning Signs of Loan Modification Scams

Loan modification has become very popular in recent years. It has been used in a variety of different ways to change the existing terms of mortgages. While sometimes loan modification can be to your advantage, many times it is not. There are many loan modification scams out there that you should be aware of. Here [...]

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3 Main Parts Of Your Mortgage Application

Credit is a huge factor in getting your home loan. It is important to know your score by getting pre qualified for your mortgage before you start looking for a home. This gives you time to fix any problems on your report. If your score is low, a few months can make all of the [...]

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Fixed or Adjustable rate?

Interest rates are usually expressed as an annual percentage of the amount borrowed. You can choose a mortgage with an interest rate that is fixed for the entire term of the loan or one that changes throughout. A fixed-rate loan gives you the security of knowing that your interest rate will never change during the [...]

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Pre-qual vs Pre-approval

Any reputable lender will "pre-qualify" you for a mortgage before you start house hunting. This process includes analyzing your income, assets and present debt to estimate what you may be able to afford on a house purchase. Obtaining mortgage "pre-approval" is another thing entirely. It means that you have in hand a lender's written commitment [...]

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What are points?

In the special vocabulary of mortgage lending, "points" are a type of fee that lenders charge (the full term to describe this fee is "discount points"). Simply put, a point is a unit of measure that means 1% of the loan payment. So, if you take out a $100,000 loan, one point equals $1,000.  Discount [...]

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How much do I need to put down for a down payment?

This depends on many factors. For purchases, we have loan programs that allow financing from 95%, 97%, to even 100% of the home value. Of course, loans with a loan-to-value ratio (LTV) of greater than 80% will likely require private mortgage insurance (PMI) by the lender. For refinance loans, we have several "no out of [...]

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Why do I need to check my credit prior to purchasing a house?

Even if you're sure you have excellent credit, it's wise to double-check at the outset. Straightening out any errors or disputed items now will avoid troublesome holdups down the road when you're waiting for mortgage approval.You may see disputed items, in addition to errors caused by a faulty social security number, a name similar to [...]

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What is the difference between Conforming and Non-Conforming loans?

Conforming loans are loans that comply with the guidelines set forth by the federal government for "conforming" lending. Some of the guidelines are borrower credit scores, and total loan amounts. Non-conforming loans to do not abide by these guidelines. Non-conforming loans have higher loan limits. They can also be advantageous to borrower with credit scores [...]

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What is APR (Annual Percentage Rate)?

"APR" is a yearly rate that captures the total cost of the mortgage. It includes; Interest paid over the life of the loan, Mortgage Insurance (MI), Loan Origination Fees, Lender Funding Fees, etc.The A.P.R. is a tool for comparing loans. The A.P.R. is designed to give you the "true cost of a loan" in the [...]

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What is LTV (Loan To Value)?

LTV is the ratio of the loan amount to the appraised value of the property. LTV will affect the kind of rate and programs available to a borrower. The lower the LTV the better terms and programs offered by the lenders.

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