Posts Tagged ‘ home loan ’

Which Home Loan is Right For You

The steady uptick in temperature ushers in more than just pool-side cocktails and barbeques. It’s the start of real estate season, and people are hitting the MLS and local Realtors in search of For Sale signs to lead them to their perfect home.

But before you move from hunter to homeowner, the mortgage industry must be conquered, and you’ll have to get a home loan. The good news is that interest rates on mortgages are dropping, with CNN Money reporting 15-year mortgages with an average rate of 3.11%. The bad news is there are so many loan options available, you may have a hard time figuring out which one is right for your situation.

These short questions can help point you in the right direction instead of taking a stab in the dark. If you’d rather view visuals, New American Funding created an infographic quiz that can help you find the right home loan though a series of short questions.

How’s your credit score?

  • More than 640: Conventional Loans are your best bet because you can take advantage of the low interest rates and flexible payments
  • Less Than 640: FHA Loans provide easier qualifying guidelines if you’re credit score isn’t great or you can’t afford a large down payment.

How big is the home you’re buying/refinancing?

  • Less than 3 bedrooms: If your home is more than $417,000, double check your county’s maximum loan limits. For a lot of house, High Balance Loans or Jumbo Loans are your best option.
  • 3+ bedrooms: If your home is less than $417,000, you’ll fall into the amounts of FHA or Conventional Loan limits.

Would you consider yourself a risk taker?

  • Absolutely: Adjustable Rate Mortgages (ARMs) give you a lower interest rate for the first 3-10 years, but it will adjust based on the market so if you can stomach the fluctuations, go for it and then go skydiving.
  • No way: Nothing wrong with being conservative. Secure yourself with a Fixed Rate Mortgage so you know how much you’ll be paying each and every month.

Continue reading this post


Posted by: Erin Everhart on May 1st, 2012 under Financing, Mortgage and Home Loans


Taking Advantage of the USDA Home Loan

Deciding to purchase a home can be an overwhelming experience for any potential home buyer. In addition to taking the time to scour through newspaper ads and online searches to find an ideal home, buyers also have to worry about securing adequate financing which isn’t always easy in today’s economy.

Conventional lenders are more strict than ever before when it comes to borrower eligibility. With most programs, applicants must have stellar credit scores and histories and are generally expected to have a down payment near 20 percent of the home’s sales price simply to secure financing. For a modest home purchase of $125,000 that means borrowers are expected to put down $25,000 out of pocket, not including other costs normally associated with purchasing a home.

For many interested home buyers, conventional lending options simply make home ownership either unaffordable or inaccessible to obtain. However, the USDA home loan program tends to alleviate the major costs associated with financing so that more people can have access to the dream of home ownership.

What is the USDA Home Loan?

The USDA home loan is a home financing option provided by the USDA’s Department of Rural Development that has been designed to make securing a mortgage easier for those interested in living in rural or outskirts areas. There are two types of home loans generally provided by the program, the Direct and the Guaranteed, and both are 100 percent backed by the government. By providing interested home buyers with a loan option that is backed by the government, borrowers are able to save out-of-pocket expenses through various benefits.

Continue reading this post


Posted by: HG Blog Admin on January 19th, 2012 under Financing, Mortgage and Home Loans


A Tale of a Refinance That Almost Wasn’t…

So, we’ve all been reading about the changes that have occurred…and continue to occur…in the lending industry as a result of the backlash caused by subprime/no money down loans.

market-recovery-challenges-bridgeThe process of getting a loan has become more and more complex and lenders will tell you that every day brings a new regulation (or two…or three…or more) that puts obstacles in the way of approving loans.

Don’t get me wrong.  I think the industry needed to change…but the pendulum has obviously swung much too far.

This hit home last week when I heard from past clients/friends who were trying to refinance their current loan.

Here’s the story:

This couple (let’s call them The Jones’), with a combined income of over $300,000 a year, impressive credit scores, no ongoing debt except for their current mortgage and current liquid savings of abut $800,000 had applied to refinance their $700,000 mortgage.

The Jones’ filled out all the required paperwork, supplied two years of tax returns and provided a check for the appraisal and application fee.  The lender/investor said that there was only one appraiser who was acceptable to them and, since that appraiser was only available on a date when the homeowners were going to be out of town, the Jones’ made special arrangements for a friend to meet him.

And then they waited….for over three weeks for the appraiser to come up with a value on the property. Continue reading this post


Posted by: Kevin Koitz on September 17th, 2009 under Financing, Mortgage and Home Loans


Four VA Home Loan Myths Debunked

Are you using VA loans properly in your real estate brokerage business?  Most agents don’t fully understand them and their customers are suffering because of it. 

Here are four myths, truths and action items, about VA home loans, that could help you serve your home buying customers better:

LOAN MYTH 1You have to be on active duty, in the military service, to use a VA home loan.
FACTEligibility is determined by current and past service.  Essentially, if a veteran served for at least six months, from 1964 to today, they most likely have VA home loan eligibility.  There are 15 million veterans under the age of 65 today; most of them should be eligible.
ACTION ITEM: Ask every new homebuyer, regardless of their age if they served.  Don’t rule out the gals; about 10% of those vets are women.


LOAN MYTH 2:  Sellers have to pay for the veteran’s closing costs.
FACT:  The VA doesn’t allow for certain loan-related fees to be paid by the veteran.  Those fees are usually about $1,200.  The loan originator or REALTOR can pay those fees.  THE VA allows the seller to contribute up to 4$ of the selling price towards ANY loan-related costs but the seller does NOT have “mandatory” fees.
ACTION ITEM:  Write “seller not responsible for any allowable or non-allowable VA loan-related costs” and call the listing agent to explain this when presenting an offer. Continue reading this post


Posted by: Brian Brady on March 10th, 2009 under Financing, Mortgage and Home Loans


Can You Whip A Stockbroker?

HomeGainers (and anyone else who wants to attend) have an incredible opportunity this month.  For the past two years, your pin-stripe suited cousins on Wall Street have been pooh-poohing real estate as a viable retirement planning investment.  Securities statements are coming out around the 5th or 6th of December and you have a chance to get some business.  Over 90% of the “white shoe” investment firms’ $1 million clients are seeking advice elsewhere.  Only 29% of the clients of the smaller, “boutique firms” will be leaving their advisers.

What’s your plan to get some of that money?

Do you know how to compare the S&P500 to responsibly leveraged residential real estate?  The S&P 500 is lower than it was a decade ago.  Today, it’s trading at 857 while it was over 900 in 1998.  At it’s peak in the last decade, the index broached 1600 (last year) , almost twice of its current value.  This means some 40-50 year olds have seen 30-40% of their retirement accounts drop in value…

…and they’re very scared.

If an investor wanted to double his money in the next ten years, leaving it in the S&P500 may just do it.  What would a single-family home, in a good area, need to appreciate, to achieve the same goal?

…about 3.3% per year.  In other words, can a home selling for $200,000 today, sell for $300,000 in ten years?  If you can confidently answer “yes” to that question, you can compete with the Wall Street titans for their former clients’ money…and I’ll show you how to do it..for free*

Don’t wait.  Register for the FREE “Ask the Experts Call” today.

* There ain’t no such thing as a free lunch.  If you like what you hear on the call, I’ll hope to earn the right to help your new clients with their financing.  It’s not mandatory but I might just help you snare a new client.


Posted by: Brian Brady on November 29th, 2008 under Financing, Mortgage and Home Loans, Guest Bloggers, HomeGain

1 Comment »

Mortgage 911

Don’t you just hate lenders?

You know what I’m talkin’ about. You secure a pre-approval letter, find the buyer their dream home, arrange the home inspection, negotiate repair items, remove loan contingencies, arrange the closing (or settlement for the lawyer states), and…

BRRRING BRRRING !! Your phone rings three days prior to settlement.

”Uh, this is Walter Banker from Big Bank in America. We have a problem.”

Husbands are cursing, wives are crying, and children are depressed because there is no mortgage. Sellers, their agents, lawyers, and everyone involved in the transaction are threatening lawsuits. A sad and stressful situation, to say the least.

There are three reasons for this:

a) The client’s loan originator is a liar.

Seriously. Less experienced or desperate loan originators overpromise and under deliver. They push the edge of the envelope and deliberately make promises they are unclear about. Continue reading this post


Posted by: Brian Brady on April 7th, 2008 under Financing, Mortgage and Home Loans, Guest Bloggers


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