ARCHIVED BLOG POSTS
2011
A couple of times each year I get a call from a concerned parent. The parents want to gift their child money for the down payment and they are concerned that either they will have to pay the gift tax or the person receiving the gift will have to pay a tax. The chances are no one will have to pay ...
05/31/2011
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It just makes sense to pre-qualify before you go out looking at homes to buy. When you make an offer the seller is going to want to see your pre-qualification letter from a reputable lender. Many times the seller may want to know your credit score and see a copy of your bank account to prove that...
05/27/2011
FHA only requires a down payment of 3.5% of the purchase amount. The down payment can be gift. Also, FHA does allow for co-signers and the loan is easier than other loans to qualify for. Be aware that the down payment, no matter what the source, must be tracked perfectly as this video shows.http:...
05/27/2011
The amount of interest that you will pay for any loan is based on the loan size, the interest rate and the frequency of payments. This video shows you how to save $95,000 on a $417,000 loan. I used $417,000 because at the time of this writing that is the conforming loan limit. Also I used a rate ...
05/27/2011
A proposal before regulators to require a minimum of 20 percent down payment on all residential transactions, if allowed to take effect, would put home ownership out of reach for middle-income Americans. Please take time to visit the REALTOR® Action Center to answer the National Association of RE...
05/27/2011
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When refinancing a mortgage or financing a purchase there are three components for loan approval; The Credit Score, The Down Payment or Equity and the Debt to Income Ratio. By far, the most confusing and the area where loan underwriters spend most of their time when reviewing a file is in the deb...
05/27/2011
Recently I wrote a blog that details how much a low credit score penalizes a home buyer. When I say "low credit score" I mean any score below 740. The one point from 740 to 739 will cost a home buyer just over $1000 http://activerain.com/blogsview/2296868/what-is-the-cost-of-a-low-credit-score-.W...
05/16/2011
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There are many variables in pricing a loan. In this blog I want to simply compare one component with hard dollars. The situation: A $417,000 loan 4.875% and no points to the client with a credit score of 740 and a loan to value of 75%.. If that client has a score of 739... I know, it is only 1 po...
05/14/2011
This blog shows some of the possibilites available to first time home buyers.Is it possible to get a 3.92% interest rate when the actual note rate on the loan is 4.75% ? The answer is "Yes" and here is the explanation.The answer is by using the Down Payment Assistance Programs and the MCC program...
05/14/2011
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Someone sent me this story a while ago and I re-read it this morning. It really does capture the idea that money has no value unless it circulates. It's a slow day in some little town.The sun is hot...the streets are deserted.Times are tough, everybody is in debt, and everybody lives on credit.On...
05/14/2011
Rainmaker
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Doug Jones
Mortgage Broker - NMLS 286668