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Beginning January 2010 HUD will be implementing a new good faith estimate.  The new gfe will be considerably easier to understand than the pervious good faith estimate. For instance, on page 1 of the new good faith estimate your loan amount, loan term, interest rate, closing costs, pre-payment (if you have one), and whether or not the rate can adjust.  While the old gfe would tell you what your rate is, and what your loan amount is, the rest of the information is either not on the old gfe, or its hard to understand.  The new gfe will make it easier for a borrower to shop and compare rates from one lender to another because of its simplicity.

Another major change to the new good faith estimate is how yield spread premium is disclosed.  Yield…

It’s not uncommon to see a property that is deeded in a trust.  Due to both State and Federal estate tax laws it makes a lot of sense to move your property into a trust to avoid estate taxes.  The process for refinancing a home that is deeded in a trust isn’t much different than a refinance held by individuals.  In addition to the regular income, asset and credit information needed you’ll also need to provide all the Trust documents.  These documents will lay out the type of Trust and how it’s structured.  If the Trust generates income and has assets, all of that must be documented with tax returns.  At closing, you’ll sign the Note as an individual; the deed will be signed by the individual as the Trustee.  Closing your loan this way you…

There was a time when everyone wanted to invest in real estate.  It was thought to be the safest investment out there.  Once the real estate market bubble burst, a lot of potential investors were scared off…and wisely so. I am of the opinion that those still sitting on the sidelines should now entertain getting back in the game.

With home values just now recovering from all time low’s, and mortgage rates hovering around all time low’s, a mortgage payment on your investment property mortgage payment would be extremely low.  Lending guidelines have certainly tightened, with lenders wanting to see 25% down on investment property purchases, but if there is one thing learned over the last 24 months,  its that diversification is imperative. 

Typically buying a home, your real estate agent will suggest what Title Company to use.  Is that really what’s best for you?  During the process of obtaining a mortgage and getting to the settlement table, your lender will be the in constant contact with Title Company, so shouldn’t they be the one advising on the title company?

I always suggest that my clients speak to one or two other title companies other than the one the Agent suggests.  I explain to them that many times, the Agent’s company and the title company they suggest are in business together and want you to use them because it’s a revenue stream for the agent.    It is imperative the Title Company (which hopefully has an attorney on staff) is up to date on the perpetually…

In today's market there are so many great deals to be had.  Its still a buyers market, so most potential buyers are in a rush to jump on a home they feel is a great deal.  Add to that the tax credit being offered, and its hard for buyers to turn away from buying a new home.  The problem is, many buyers are out there looking at home without being pre-qualified for their purchase.  In today's market it is important to speak with a loan officer before even looking at properties.  A buyer must realize that it isn't easy to obtain financing today.  With more borrowers than ever being turned down for loans, it makes it that much more important to know whether or not you qualify to buy.  Also, a qualified buyer needs to know what they're qualified…

Effective today, the popular FHA Streamline program has undergone a guideline change.  There are 3 main changes.  First is what your new loan amount should be.  Previously, FHA would allow a borrower would be allowed to borrow up to the amount they originally borrowed, plus their new upfront premium.  Now, they can borrow the principal balance on the loan, plus the new up front premium.  This will lead to one of two things.  Either the borrower will be paying more closing costs out of pocket, or the borrower will have to take a higher rate, and the loan officer will have to give a bigger broker credit to keep costs down.

Another major change is seasoning.  Now a borrower must have made at least 6 mortgage payments on their current…

Not too long ago congress extended the first time homebuyers tax credit.  This was the 8,000 tax credit that was originally set to expire on November 30th, 2009.  Now, any first time homebuyer who wanted to take advantage of the credit but wasn't able to find and close on a home before the Nov. 30th deadline is in luck.  Keep in mind this credit is not applied at closing, it is a credit that is applied when you file your annual tax returns.

Also, as a part of the first time home buyer tax credit extension, current homebuyers are also eligible.  If you have lived in your current home for 5 of the last 8 years you would qualify for up to a 6,500 tax credit.  The only other requirements are the house you're buying must be your primary…

In today's real estate market you hear more and more everyday that you need to work with a direct lender, not a mortgage broker.  People say that brokers don't close on time, brokers take advantage of customers, and brokers are too expensive.  The truth is, none of those are true.  In today's market brokers have a huge advantage...we work with multiple lenders and have multiple options.  What if you're working with Bank of America direct lending, and they can't do your loan because your loan to value ratio is too high?  Do they just turn your loan down?  Working with a broker he can take your loan to someone else.  Maybe Bank of America can't do it, but someone else can.  Another example would be your debt ratio being too high for…