Mortgages sold as investments (MBS) are in strong demand. This strong demand by investors is driving mortgage rates lower this morning. There is an increase in the cost of getting a loan as of yesterday. Fannie Mae and Freddie Mac must raise the fees they charge banks which will amount to roughly 1/2% additional cost to secure the same rate.
Contact me for a pre approval to buy a home or to see if refinancing would help lower your payment.
San Diego mortgages - San Diego FHA and VA broker
How to Shop Mortgage Rates
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HUD wants to make it clear that they appreciate the sacrifices and commitment to keeping communities strong throughout the USA. Law enforcement officers, teachers- pre-kindergarten through 12th grade, firefighters & emergency medical technicians can become homeowners through the Good Neighbor Next Door Sales Program sponsored by HUD while contributing to community revitalization.
A nice break for our police officers!
HUD offers a discount of 50% from the list price of the home.
How it works
You can get a 50% discount off the HUD appraised value. For example, if HUD lists a home at $200,000, you can buy it for $100,000 provided, you occupy the home as your personal residence for 36 months. If you qualify for any FHA-insured mortgage program, your down payment is only $100 and you can finance closing costs.
The purpose of the program is to strengthen communities by encouraging employed, professional law enforcement officers, teachers and firefighters & emergency medical technicians to live in the community. You will have 30, 90 or 180 days to move into the home you purchase, depending on HUD's determination of the condition of the home and the level of repairs that may be required, if any.
A great benefit for our brave fire fighters...
Our commited teachers
Our life saving EMT's
You must live in the home as your sole residence for a full 36 months
Beware: HUD views the occupancy obligation seriously and vigorously pursues violators to the fullest extent of the law.
The 30th, 90th or 180th day is the start date for the occupancy period. You are released from all obligations under this program at the end of the 36th month following the start date.
The homes are located in revitalization areas as defined by HUD
HUD requires you to sign a Second Mortgage and Note on the discounted amount (which is $50,000 in the example above). No interest or payments are required on this "silent second" mortgage if you live in the home for the entire 36 month occupancy period. You may be required to pay a pro-rata portion of the discount to HUD should you fail to fulfill the three year occupancy requirement.
After living in the home for three years you may sell it and keep the profit!
How a fully approved loan gets denied for funding after the borrower has signed loan docs.
Underwriter views an updated credit report verifying no new activity since original approval was issued and the new debt disqualifies the buyer(s).
Generally this won’t happen in a 30 day time-frame, but borrowers should anticipate a new credit report being pulled if the time from an original credit report to funding is more than 60 days.
Purchases involving short sales or foreclosures tend to drag on for several months, so this approval / denial scenario is common.
It’s An Ugly Cycle
First Time Home Buyer receives loan approval and thinks everything is done so makes a credit impacting decision (applies for a loan on a new car, furniture or runs up credit card balance. Loan documents are signed and the funder gets new credit report sees any of these scenarios and denies the loan.
In the hopes of stemming the senseless slaughter of perfectly acceptable approvals, we’ve developed a “Ten credit do’s and don’ts” list to help ensure a smoother loan process.
These tips don’t encompass everything a borrower can do prior to and after the Pre approval process, however they’re a good representation of the things most likely to help and hurt an approval.
DO continue making your mortgage or rent payments
Remember, you’re trying to buy or refinance your home – one of the first things a lender looks for is responsible payment patterns on your current housing situation.
Even if you plan on closing in the middle of the month or have already given notice, continue paying that rent until you’ve signed your final loan documents
DO stay current on all accounts
Much like the first item, the same goes for your other types of accounts (student loans, credit cards, etc).
Nothing can derail a loan approval faster than a late payment coming in the middle of the loan process.
DON’T make a major purchase (car, boat, big-screen TV, etc…)
This one gets borrowers in trouble more than any other item.
A simple tip: wait until the loan is closed before buying that new car, boat, or TV.
DON’T buy any furniture
This is similar to the previous, but deserves it’s own category as it gets many borrowers in trouble (especially First Time Home Buyers). Remember, you’ll have plenty of time to decorate your new home (or spend on your line of credit) AFTER the loan closes.
DON’T open a new credit card
Opening a new credit card dings your credit by adding an additional inquiry to your score, and it may change the mix of credit types within your report (i.e. credit cards, student loans, etc).
Both of these can have a negative impact on your score, and could result in a denial if things are already tight.
DON’T close any credit card accounts
The reverse of the previous item is also true. Closing accounts can have a negative impact on your score (for one – it decreases your capacity which accounts for 30% of your score).
DON’T open a new cell phone account
Cell phone companies pull your credit when you open a new account. If you’re on the border credit-wise, that inquiry could drop your score enough to impact your rate or cause a denial.
DON’T consolidate your debt onto 1 or 2 cards
We’ve already established that additional credit inquiries will hurt your score, but consolidating your credit will also diminish your capacity (the amount of credit you have available) resulting in another hit to your credit.
DON’T pay off collections
Sometimes a lender will require you to pay of a collection prior to closing your loan; other times they will not. Pay off collections when necessary to ensure a loan approval. Otherwise, needlessly paying off collections could have a negative impact on your score. Consult your loan professional prior to paying off any accounts.
DON’T take out a new loan
This goes for car loans, student loans, additional credit cards, lines of credit, and any other type of loan. Taking out a new loan can have a negative impact on your credit, but also looks bad to underwriters and investors alike.
Follow these Do’s and Don’ts for a smoother mortgage approval and funding process.
Remember the simple tip: wait until AFTER the loan closes for any major purchases, loans, consolidations, and new accounts.
How to Shop Mortgage Rates
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You find this great house that is in the perfect location, in a great school district, close to shopping and a yard your buyer always wanted. It’s the lowest price in the neighborhood.
Unfortunately It's a foreclosure and the last occupant decided to just destroy the house before they left – taking all the appliances, ripped up the carpet, punched holes in the walls, broke windows to name a few.
First time home buyers can't imagine fixing all of this.
Most will just turn around and walk out the door because they believe they couldn’t possibly come up with the money or the time to complete repairs.
The 203k loanallows a home buyer to purchase a home in need of repairs and remodel it. Some of the items that can be replaced include flooring, counters, windows, roofing, drywall. Install a new bathroom, add a room, second story, new kitchen and even energy efficient appliances can be included! If you have a large project that needs a full gut job or additional rooms, the Standard FHA 203(k) is the right program. View allowable improvements for the Standard 203K.
Need to update a home without "gutting it"? Try the 203k Streamline!
A streamline FHA 203k allows up to 35,000 toward repairs. There is a minimum of 5,000 in repairs required. No structural repairs are allowed under the streamline 203k.
This program does require health and safety repairs as mandatory like peeling lead paint, missing smoke detectors or replacing missing railings. All health and safety issues must be addressed first.
How a fully approved loan gets denied for funding after the borrower has signed loan docs.
Underwriter views an updated credit report verifying no new activity since original approval was issued and the new debt disqualifies the buyer(s).
Generally this won’t happen in a 30 day time-frame, but borrowers should anticipate a new credit report being pulled if the time from an original credit report to funding is more than 60 days.
Purchases involving short sales or foreclosures tend to drag on for several months, so this approval / denial scenario is common.
It’s An Ugly Cycle
First Time Home Buyer receives an approval
Thinks everything is done
Makes a credit impacting decision (applies for a loan on a new car, furniture or runs up credit card balance)
Funder gets new credit report, sees any of these scenarios and denies the loan
In the hopes of stemming the senseless slaughter of perfectly acceptable approvals, we’ve developed a “Ten credit do’s and don’ts” list to help ensure a smoother loan process.
These tips don’t encompass everything a borrower can do prior to and after the Pre approval process, however they’re a good representation of the things most likely to help and hurt an approval.
DO continue making your mortgage or rent payments
Remember, you’re trying to buy or refinance your home – one of the first things a lender looks for is responsible payment patterns on your current housing situation.
Even if you plan on closing in the middle of the month or have already given notice, continue paying that rent until you’ve signed your final loan documents
DO stay current on all accounts
Much like the first item, the same goes for your other types of accounts (student loans, credit cards, etc).
Nothing can derail a loan approval faster than a late payment coming in the middle of the loan process.
DON’T make a major purchase (car, boat, big-screen TV, etc…)
This one gets borrowers in trouble more than any other item.
A simple tip: wait until the loan is closed before buying that new car, boat, or TV.
DON’T buy any furniture
This is similar to the previous, but deserves it’s own category as it gets many borrowers in trouble (especially First Time Home Buyers). Remember, you’ll have plenty of time to decorate your new home (or spend on your line of credit) AFTER the loan closes.
DON’T open a new credit card
Opening a new credit card dings your credit by adding an additional inquiry to your score, and it may change the mix of credit types within your report (i.e. credit cards, student loans, etc).
Both of these can have a negative impact on your score, and could result in a denial if things are already tight.
DON’T close any credit card accounts
The reverse of the previous item is also true. Closing accounts can have a negative impact on your score (for one – it decreases your capacity which accounts for 30% of your score).
DON’T open a new cell phone account
Cell phone companies pull your credit when you open a new account. If you’re on the border credit-wise, that inquiry could drop your score enough to impact your rate or cause a denial.
DON’T consolidate your debt onto 1 or 2 cards
We’ve already established that additional credit inquiries will hurt your score, but consolidating your credit will also diminish your capacity (the amount of credit you have available) resulting in another hit to your credit.
DON’T pay off collections
Sometimes a lender will require you to pay of a collection prior to closing your loan; other times they will not. Pay off collections when necessary to ensure a loan approval. Otherwise, needlessly paying off collections could have a negative impact on your score. Consult your loan professional prior to paying off any accounts.
DON’T take out a new loan
This goes for car loans, student loans, additional credit cards, lines of credit, and any other type of loan. Taking out a new loan can have a negative impact on your credit, but also looks bad to underwriters and investors alike.
Follow these Do’s and Don’ts for a smoother mortgage approval and funding process.
Remember the simple tip: wait until AFTER the loan closes for any major purchases, loans, consolidations, and new accounts.
How to Shop Mortgage Rates
View this in 1080 HD by clicking next to "CC" at bottom
Whenever I review a new customers current loan information and notice their interest rate is higher than what it should be the first thing I ask them is if they got a no fee loan. Most of the time they say yes and are surprised that I know. I know because a higher rate usually means less or no loan fees.
No fee loans sound like a great idea to most people. Little do they know it could be much more expensive than a traditional loan. No fee loans certainly have a place in San Diego real estate for people that will keep their loan for a short period of time, meaning three years or less. No fee loans in San Diego and all over the country are expensive if the loan is kept long term. View my explanation on how a no fee loan can cost a lot of money.
That is correct. An FHA loan isn't a government loan but rather an insurance policy on a home loan paid by the government. This quick video explains it all. FHA loans are our specialty. If you are looking for FHA financing for a home purchase or a refinance contact us today. Using a lender without FHA experience will usually end up a mess and costing you money. We are Carlsbad FHA experts.
mortgages carlsbad - fha broker
How to Shop Mortgage Rates
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Sorry that you invested your time and expense on your clients but right now I have a lot of other files I have to deal with. Basically they just said: So sorry I blew your purchase but I'm too busy... to care.
On more than one occasion this has resonated from loan officers discussing a file "gone bad". Not completely their fault, they usually work for large institutions that push volume over quality.
Hiring the wrong loan officer in a purchase transaction can cost you big. The buyer, seller, real estate agents and escrow company stand to lose if the financing doesn't materialize or is delayed. Refinances by nature don't require as much diligence.
Purchase transactions must be handled differently than refinance loans because of time constraints and legal consequences.
Let's look at a few:
In real estate purchase transactions the buyer will pay an earnest money deposit as consideration to make a contract valid. If the loan portion is not handled correctly and in a timely fashion the buyer can lose their earnest money.
Buyers potential losses:
Earnest money
Cost of home inspection
Cost of home appraisal
Cost of any buyer paid repairs
Loses home purchase
May have to find alternate living arrangements
May have to find storage for personal items
May lose deposit to a moving company
Sellers potential losses:
Loan delays will require more contract negotiations/ addendum
Property removed from market
Potential valid buyer refuses to make a back up offer
Longevity of listing makes property less appealing
May be in contract to buy another home- and must carry two mortgages
May lose deposit paid to a moving company
Buyers real estate agent:
Loan delays will require more contract negotiations/ addendum
Must begin a new home search
More time and expense of driving to view properties
Potential loss of credibility with client (They often blame everyone in the transaction)
Loss of commission
Sellers Listing agent:
Cost of re listing property
Time spent to market property
Time spent to re negotiate contracts
Perceived property issues due to longevity of listing
Loss of commission
Escrow / Title Company:
Time spent preparing title insurance
Expense of ordering title report
Time and expense of sending paperwork to all parties
Loss of profit from closed transaction
We don't pre qualify buyers based solely on their credit and income. We do a comprehensive analysis of the buyers ability to get a loan. We protect the buyer, seller, agents and the reputation of our industry by doing the work up front.
State and local government agenciesinvolved in the provision of housing may obtain FHA insured financing provided the agency meets the following criteria:
The agency must provided evidence from its legal council that:
The agency has the legal authority and capacity to become the borrower.
That the state or local government is not in bankruptcy.
That there is no legal prohibition that would prevent the lender from obtaining a deficiency judgment (if permitted by law for other types of borrowers) on FHA's behalf in the event of foreclosure or deed in lieu of foreclosure.
Credit reports, financial statements and bank statements are not required for these agencies to qualify.
Feel free to contact us with any FHA or mortgage related questions.
How a fully approved loan gets denied for funding after the borrower has signed loan docs.
How a fully approved loan gets denied for funding after the borrower has signed loan docs.
