Blog Archives

Bankruptcy, Foreclosure & Short-Sale Guidelines

lend-borrowBankruptcy, Foreclosure & Short-Sale Guidelines

As a Senior Loan Officer, I think the biggest challenge in today’s economic and mortgage lending environment has to do with the amount of people that have had a bankruptcy, foreclosure, or short-sale; and sometimes all of the above. It is important to understand what the current lending guidelines are when trying to get pre-approved to purchase a home. While they are always subject to change, here are the current ones. Read the rest of this entry

Mortgage Insurance (MIP vs PMI)

Mortgage Insurance (MIP vs PMI)

Often times when one is considering the idea of purchasing a home, mortgage insurance is forgotten about when considering their monthly payment.  When this happens, it can become a shock to the borrower.  Mortgage insurance is always important to consider whenever one doesn’t have a minimum 20% down payment.  There are two types of mortgage insurance depending on the loan program.  These two types are Mortgage Insurance Premium (MIP) for FHA loans, and Private Mortgage Insurance (PMI) for conventional loans.  Both of these types protect the lender in the event of a foreclosure by the borrower and allow the borrower to put less money down at the time of purchase on the home.  Let’s discuss these two types further.  Read the rest of this entry

How to Protect Your High Credit Score

How to Protect Your High Credit Score

So, you’re ready to start shopping for a mortgage, and your lender wants to “pull your credit”.  You’re worried it will harm your coveted credit score.  Today, the credit bureaus clearly address this concern and state that your score will not continually drop when mortgage lenders pulls your credit; that is, if it’s done correctly.  Read the rest of this entry

Rising Interest Rates

Rising Interest Rates

There has been a lot of talk about the most recent rising interest rate trend and the effect that can have on the economy as a whole.  When you hear the term “interest rates,” typically it means the federal funds rate.  The federal funds rate is the rate that banks charge each other to borrow money from one another.  When the interest rate is raised, it makes borrowing money more expensive, which affects how consumers and businesses spend.  This is how the Federal Reserve (“the Fed”) attempts to control inflation through its monetary policies.     Read the rest of this entry

New Qualified Mortgage Rules

New Qualified Mortgage Rules

On January 10th 2014 mortgage rules changed in a big way due to the Dodd Frank Wall Street Reform and Consumer Protection Act going into effect.  This act affects both homeowners who want to refinance, as well as anyone looking to purchase a home.   While there are several new rules being implemented, there is one that will by far have the biggest impact on consumers.     Read the rest of this entry