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How Technology Has Changed The Mortgage Process Forever

Mortgage technology is changing the homebuying process daily. The days of paper applications in your bank's lobby are over. In a lot of ways, the advancement in mortgage technology has allowed the consumer to shop around and find a broker, lender, or bank that best suits their needs. Once the right partner is selected, a borrower can zoom through the pre-approval process with the right technology suite at their disposal. Finding a lender is an arduous process for the consumers. When trying to find a mortgage provider, borrowers use to sift through phone…continue reading →

What is Mortgage Insurance? How Does it Work?

Mortgage insurance is essentially financial protection for the lender. If the borrower defaults on payments or cannot make the payments outlined in their contract with the lender, then mortgage insurance can protect them.  How Does it Work?  Mortgage Insurance can function differently depending on the agreement you have in place. Either it functions as a regular premium payment, or a lump-sum payment made when the lender signs the mortgage agreement. Some borrowers do not have a choice and are made to purchase PMI if they have greater than an 80% loan-to-value ratio. However,…continue reading →

3 Things You Need to Know When Buying a Home

The process of buying a home for the first time can be a stressful experience. This decision comes with many responsibilities and often steps that we know little about.   If this is your first time buying a home, you need to know the important details to make the best decisions. Remember this is probably the most significant investment you will ever make in your life, so you must have the best information available to decide.    Buying a house for the first time should be an exciting and enjoyable process. Here are three things…continue reading →

Qualifying for FHA loans with Student Loans is Easier Now

  A recent announcement by Housing and Urban Development (HUD) has made qualifying for FHA loans easier for borrowers with Student Loans. The debt to income ratio plays an important role in qualifying for any mortgage including FHA loans. It's the ratio of your monthly obligation towards debts vs your monthly qualifying income. Before: Earlier student loan payment was calculated as follows: either the greater of 1 percent of the outstanding balance on the loan; or the monthly payment reported on the Borrower’s credit report; or the actual documented payment, provided the payment…continue reading →

H1B Visa Eligible for FHA Loans. See if you Qualify.

H1B visa holders are now eligible for Federal Housing Administration (FHA) loans. For a long time, borrowers with an H1B visa could not qualify for FHA loans. Department of Housing and Urban Development (HUD) recently released new guidelines regarding eligibility requirements for non-permanent resident borrowers. Here are the updated guidelines: A Borrower who is a non-permanent resident may be eligible for FHA-insured financing provided: the Property will be the Borrower’s Principal Residence; the Borrower has a valid SSN, except for those employed by the World Bank, a foreign embassy, or equivalent employer identified…continue reading →

Why Your Asset Statements Matter to Mortgage Lenders in 2021

Applying for a loan can feel like an invasion of your privacy. As if lenders want to pull back the curtain on your life and analyze every detail, including your job, your income from that job, your tax returns, and, worst of all, copies of your asset statements. You want to ask them what they're looking for and why! Well, many borrowers do ask that question and with good reason. When strangers dig around in your personal life, it feels invasive. When they dig even deeper, asking questions about the documents you've provided,…continue reading →

First Time Homebuyer Tax Credit: Everything You Need to Know

On April 26th, The House of Representatives introduced new legislation that would provide the first time homebuyer tax credit of up to 10% of the purchase price, or $15,000. The move comes as a step forward in President Joe Biden’s proposal which he first announced back on the campaign trail in 2020. If the bill is passed, buyers will immediately have access to funds as they close.  To be eligible for the first time homebuyer tax credit, prospective buyers must not have owned or purchased a home within the last three years. They…continue reading →

How to Qualify for a Mortgage with an IRS Repayment Plan in 2021

  Whether you filed your completed taxes this April or an extension, you should already know your tax liability for the past year. If, despite your withholding or quarterly payments, you owe more than you can pay all at once, don’t panic. It’s not the end of the world even if you’re planning on applying for a mortgage right now. It’s always been possible to obtain a mortgage while you’re on a repayment plan for past tax liability by getting an FHA mortgage. FHA loans, insured by the Federal Government, require borrowers to…continue reading →

Understanding Prepaids & Impounds on Closing Disclosure

Two of the most confusing sections are Prepaids and Impounds on the Closing Disclosure (CD) -  Prepaids (Section F) and Initial Escrow Payment at Closing (Section G). Both these sections are under "Other Costs".   Understanding Prepaids in Section F on the Closing Disclosure: 01 - Homeowner's Insurance Premium - You will need to pay 12 months premium at the time of closing if the mortgage is for purchasing a home. If you are refinancing and your insurance is good for more than 60-days at the time of closing, you will not need…continue reading →

How to Get a Mortgage If You’re Self-Employed

  If you think being self-employed will limit your ability to get a mortgage, you're wrong. Qualifying guidelines are the same for anyone applying for a mortgage whether they receive a W-2 every year or they're self-employed. Borrowers qualify based on a minimum level of income, credit, and savings. Each category requires documentation to prove, aside from your assurances, that you do in fact: Earn enough of a steady income Have built and maintained a good credit history Have adequate savings for a down payment and all closing costs It's The Documentation Documenting…continue reading →

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