iloan-self-employment-mortgage-guidelines-

Length of Self-Employment Mortgage Guidelines

With employers getting more and more creative in the way they hire, more and more would be homeowners with stable income find them self asking, “How long do I need to be 1099’d to get a mortgage or how long do I need to be self-employed to get a mortgage.”  The guidelines for this were static for a long time and then loosened during the 2000’s.  Since the Great Recession, they tightened and have finally normalized to something predictable (and rational I might add). While there are emerging subprime lenders that will allow bank statements as an alternative form of …

How to Improve Your Credit Prior to Buying a Home

iLoan recommends iQualifier as a powerful credit analytics tool to show you the way. If you’re looking to pre-qualify for a home and want a lower rate or better loan program, iLoan recommends iQualifier to enable you to analyze your credit history with the same tools that lenders and credit agencies use. Additionally, it takes you beyond that analysis demonstrating how different financial decisions may affect your credit in the months ahead. iQualifier can help you: • Better understand your credit standing • Improve your financial decision making • Achieve your financial goals (& target credit score) • Save money …

Top Three Reasons to Feel Good About Buying a Home in the Twin Cities

It doesn’t happen very often where, in a compact period of time, I see a wealth of reliable data released that shed such sunny light on the decision to buy a home in the Twin Cities but lately that has been the case.  If you’ve been contemplating such a decision, here are 3 great reasons to feel good about your decision and its timing in ascending order. Reason 3: CNBC Ranks Minnesota as a Top State for Business. CNBC’s announcement may seem boring, and it definitely is, but from the perspective of a homebuyer or homeowner, it’s critical.  This is …

Your Monthly Housing Payment Beyond Principal Interest Taxes and Insurance: Utilities

Nobody wants to be house poor.  Therefore, understanding what your mortgage payment will be when buying a house is only part of what should be considered when contemplating one’s housing costs.  Getting quotes on phone service, security systems, internet and cable are easy enough but utilities like heating and cooling costs can be a little trickier.   Taking these costs into consideration is important though because miscalculation can lead to unexpected payment shock.  Should that payment shock occur, it’s often too late to do much about it so it’s necessary to be proactive. Some of the required seller disclosure items are …

The iLoan Lock and Shop Program

Many buyers are concerned about rising mortgage rates and the implications on their plan to buy a home or sell their home and then buy another home.  The frequent question is, “Can I lock in my interest rate before I find my home?”  Typically one can’t do this until they have a fully executed purchase agreement and this amplifies a homebuyer’s fear prior to going under contract to buy their dream house.  Now, with the iLoan Lock-N-Shop program, this fear can be put to rest. Here’s an outline of how it works: The lock may be for 60 or 75 …

Different Mortgage Types and What They Mean to Buyers and Sellers in a Competitive Market

This podcast outlines the differences between Minnesota mortgage pre-approvals and how they affect purchase transactions.  Homebuyers and home sellers can learn the risks and benefits of each different type and how they relate to their transaction.  This is essential information for understanding the implications of your choice on loan type for your purchase in a seller’s market.  If you’re a seller, it’s essential for understanding the risks and advantages of accepting an offer that comes with one type of mortgage financing vs. another. Charles Dailey – Branch Manager, Loan Officer, Certified Military Housing Specialist – CA DOC, MN DOC & …

If You’re Going to Claim to “Owner Occupy” Your Home, You Better Mean It

More and more, people are finding that their intent to occupy a home when getting a mortgage may not mean what they think it means.  More and more, loan officers are also finding out that it may not mean what they think it means.  One of the Mortgage Loan Officer national testing questions asked what intent to occupy meant and the correct answer, for testing purposes, was that the buyer would have to move in within 60 days.  Now, both on refinances and on purchases, it’s becoming important to know how long one will be staying there as well. While …

Gaining an Edge With the Best Homebuyer Education

This episode of the Twin Cities Real Estate Radio Show covers comprehensive homebuyer education and wraps it up in a bow called DoorSteps. Charles Dailey – Branch Manager, Loan Officer, Certified Military Housing Specialist – CA DOC, MN DOC & WI DFI The Home Buyers Scouting Report® is provided directly to the buyer by HBM II, a licensed national real estate brokerage service company, not to or through a lender. The FREE home finding service is provided directly to prospective homebuyers by HBM II and its real estate brokers, as part of their ordinary real estate brokerage services. HBM II, …

5 Things I Wish All Homebuyers Knew Before Getting Their Mortgage

A good mortgage loan officer is like a financial psychiatrist for residential housing.  Years of training and experience are packed into our minds for the purpose of reacting correctly to buyers’ financial profiles, stories and desires.  The moral of the story?  All those years of training and experience are an empty value unless you put your entire buyer profile, story and set of desires before your loan officer.  Not doing this is like buying a 600 dollar phone and only using ten percent of its features. A good mortgage loan officer is not a peddler of a financial commodity (I …

How to Choose a Mortgage Lender When Buying Your Home

This episode of the Twin Cities Real Estate Radio Show covers different considerations when choosing a mortgage lender for a home purchase. Charles Dailey – Branch Manager, Loan Officer, Certified Military Housing Specialist – CA DOC, MN DOC & WI DFI The Home Buyers Scouting Report® is provided directly to the buyer by HBM II, a licensed national real estate brokerage service company, not to or through a lender. The FREE home finding service is provided directly to prospective homebuyers by HBM II and its real estate brokers, as part of their ordinary real estate brokerage services. HBM II, Inc. …

How to Choose and Calculate Your Private Mortgage Insurance (PMI)

Saving an eighth of a percent on interest rate can save a little on your monthly payment and shopping around on closing costs can save a little on your down payment but perhaps the most overlooked and costly mistake when buying a home is not choosing the right mortgage insurance if the down payment is less than 20%.  The wrong decision on this choice can cost thousands of dollars. Let’s take a generic purchase of 200,000 dollars with the minimum down payment and compare them but before that, here are some definitions that you’ll need: Borrower Paid Monthly Mortgage Insurance …

First Time Homebuyers – OK, Now What?

As a First Time Home Buyer it is like opening up a new IPad you just received from Santa.  You are excited to open the box, fire it up, but once it is out of the box you don’t even know what you don’t know about your new IPad.  The same generally apply’s to First Time Home Buyers, the decision is out of the box to start the home buying process, but there are so many things you don’t even know that you don’t know.  First suggestion, find a Mortgage Professional & Realtor that Specializes in First Time Home Buyer …

The Mortgage Process is Simply the Perfection of a Loan Application

Understanding the mortgage process is a constant frustration for consumers.  One can search the web and find all kinds of long articles breaking the mortgage loan process into anywhere between 6 and 9 individual steps.  Upon reading these, a consumer gets even more confused since each individual step is confusing in and of itself.  Unfortunately, the wrong question is likely getting answered in these articles.  Most mortgage clients don’t want to become experts on the minutia of processing and underwriting, they just want to know where to start and have an accurate context for why everything happens as it does.  …

FHA’s Short Refi Program

The FHA Short Refinance Program has always existed in an unofficial form but became a formal program on December 16, 2009 with Mortgagee Letter 09-52.  It was “refined” on August 6th of 2010 with Mortgagee Letter 2010-23.  It was designed to provide more mortgage options to those that owe more than their house is worth.  There are many requirements for this loan but for most borrowers who are upside down on their home and have good credit; these criteria are likely to be met with the cooperation of the existing lenders about to be paid off. For these transactions to …

How Often Do Seller’s Pay Closing Costs? . . . . . Never.

The role of closing costs in a purchase agreement can be confusing both for buyers and sellers.  In the present market, it is customary for there to be sales concessions.  A real estate sales concession can be many things including but not limited to price, repairs and yes, . . closing costs.  Asking the seller to pay for closing costs, pre-paids and discount points is common.  At the end of the day though, a buyer may have several value added considerations such as seller paid closing costs and repairs after an inspection contingency but the seller will (or at least should) always negotiate …

Do Credit Inquiries Hurt Your Credit Score?

Reblogged with Permission Via: http://www.mtgprofessor.com/A%20-%20Credit%20Issues/do_inquiries_hurt_your_credit.htm Posted September 18, 2000, Revised January 29, 2004, Revised November 18, 2004, November 16, 2006, March 26, 2011, August 1, 2011 Borrowers in distress often contact many lenders hoping to find one who will approve them. For this reason, multiple inquiries can have a negative impact on a consumer’s credit score. But multiple inquiries can also result from loan applicants shopping for the best deal. The challenge to the scoring system is to distinguish borrowers in shopping mode from borrowers in distress mode. Hard Inquiries Versus Soft Inquiries Self-inquiries, such as ordering a credit report …

Should I Stay or Should I Go Now?

Should I Stay or Should I Go Now? The million dollar question, should I stay, and continue renting, or should I go, and become a homeowner? Sometimes, I think first time homebuyers are looking at this question as a million dollar question, and really, it is not. Are we at the bottom of the declining market, or still dropping? There are “experts” all over the internet in both camps telling us we are at the bottom, and others saying more to come. This is making it a more difficult decision for the first time homebuyer than what is needed. The …

Seller Contributions Towards Closing Costs on a Home Purchase

Doesn’t the Seller Pay for All of Our Closing Costs? We all have to remind buyers that they are responsible to pay the required down payment percentage (3.5% for FHA or 3-10% etc for Conventional) AND their closing costs/pre-paids too. Even if you stipulate that the sellers contribute towards “closing costs and pre-paids” in the purchase agreement it may not cover ALL of those fees. If you want a smooth purchase transaction make sure that you ask your favorite mortgage guy if there is a NEED to try to get all/most of the closing costs/pre-paids included with the offer. It …

A home inspection. . . . What’s that all about?

A home inspection is a limited, non-invasive examination of the condition of a home, often in connection with the sale of that home. An inspector will check for roof leaks, basement, heating system, water heater, air-conditioning system, structure, plumbing, electrical, and many other aspects of buildings looking for improper building practices, those items that require extensive repairs, items that are general maintenance issues, as well as some fire and safety issues.However, it should also be noted that a home inspection is not technically exhaustive and does not imply that every defect will be discovered. A general list of exclusions include …

Do’s and Dont’s with Credit During the Home Buying Process

When buying your next home, changes to your credit (additional accounts, closing accounts, fluctuating credit card balances) can result in the lowering of your credit score. If your credit score changes, that can affect your interest rate and even the loan approval itself. Therefore, it is imperative that there are no major changes to your credit and information provided, during this process. In order for your loan to reach final approval and fund, you’ll want to adhere to the following: DO NOT charge any new items on your charge cards (higher balances will lower credit scores). DO NOT apply for …