Wednesday, September 16, 2009
Tuesday, September 8, 2009
Short Sale Definition & What Info to Provide the Lender & Realtor
Here's my definition in a nutshell: A short sale is nothing more than negotiating with loan holders a payoff for less than what they are owed. Otherwise, a sale of debt generally on a piece of real estate, short of the full amount owed. It does not extinguish the remaining balance unless this is clearly settled in the acceptance of the offer. Often a bank will allow a short sale if they believe that it will result in a smaller financial loss than foreclosing since there are legal and other carrying costs that are associated with a foreclosure. This occurs on a daily basis since many homes have loans that are considerably higher than the current value of the home. If you would like my Homeowner's Short Sale 16-Step Instructions emailed to you please contact me through this blog site.
Wednesday, September 2, 2009
Latest Hoop to Jump Through when Qualifying for a Home Loan
Hear Ye Hear Ye All Loan Applicants! The lending industry continues to tighten the underwriting rules on every facet of the mortgage process. In the past few weeks, lenders have had several investors make it a requirement to verify the source of an applicants' earnest money deposits. Previously, the industry standard was to only verify deposits that were greater than 2% of the sales price, or that were part of a gift from a family member---and that verification process was pretty loose.
As you might imagine, now that lenders are looking at these deposits more carefully, they are finding all sorts of situations from credit card advances, money from friends and employers, or money they can't track at all. BIG PROBLEMO for you the Buyer!!!
Sooooo...all you loan applicants out there....your latest loan process hoop to jump through will be to generate a paper trail for your earnest money just as you would for a gift or the sale of an asset. Are we having fun yet???
As you might imagine, now that lenders are looking at these deposits more carefully, they are finding all sorts of situations from credit card advances, money from friends and employers, or money they can't track at all. BIG PROBLEMO for you the Buyer!!!
Sooooo...all you loan applicants out there....your latest loan process hoop to jump through will be to generate a paper trail for your earnest money just as you would for a gift or the sale of an asset. Are we having fun yet???
Tuesday, August 25, 2009
Don't Make Major Credit Purchases when Qualifying
Home buyers---don't go on a spending spree using credit if you are qualifying to purchase a home. Your loan pre-approval is subject to a final evaluation of your credit report just a few
days prior to closing. Every $100 you pay per month on a credit payment could cost you about $10,000 in home eligibility ie. $300 car payment could mean that you qualify for $30,000 less in a mortgage. Even if you have sizable savings, don't make any large purchases until after closing. The last thing you want to happen is to have your loan declined and lose your new home.
days prior to closing. Every $100 you pay per month on a credit payment could cost you about $10,000 in home eligibility ie. $300 car payment could mean that you qualify for $30,000 less in a mortgage. Even if you have sizable savings, don't make any large purchases until after closing. The last thing you want to happen is to have your loan declined and lose your new home.
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