Frequently asked questions
Is a surviving spouse of a deceased Veteran eligible for a VA Mortgage loan?
Friday, 30 March 2012 13:26
The unmarried surviving spouse of a Veteran who died on active duty or as the result of a service-connected disability is eligible for the VA home loan benefits. The surviving spouse should complete this Request for Determination of Loan Guaranty Eligibility – Unmarried Surviving Spouses Form 2...
READ MOREWhat are the VA, FHA, and USDA or RD up-front funding / guarantee fees for?
Thursday, 16 February 2012 22:06
The VA funding fee is required by law. The fee, currently 2.15% on no down payment loans for a first-time use, is intended to enable the veteran who obtains a VA home loan to contribute toward the cost of this benefit, and thereby reduce the cost to taxpayers. The funding fee for second time users w...
READ MOREI’m here at closing, where are the keys to my house?
Thursday, 16 February 2012 21:59
An important thing to remember for a purchase closing is that just because the buyer has signed the closing documents, the property is not the buyer’s yet. Generally the following items need to happen in order for the buyer to get the keys to the home: Buyers and sellers sign all applicable pa...
READ MOREWhy do I have to pay the whole property tax bill when the seller owned the property for part of this year?
Thursday, 16 February 2012 21:32
This is a very popular question at closing during part of the year because the attorney may say “You will be paying the tax bill for the entire year”. This is true that the entire tax bill for tax year of the sale will be paid by the buyer if the tax bills are not out yet. If this is true, t...
READ MOREWhen can my pmi come off of my mortgage loan payment?
Thursday, 16 February 2012 21:25
This is a popular question and a few years ago pmi could get removed rather quickly because of home values increasing so quickly. In the past, one could request a review of their mortgage to appraised value ratio and if the new appraisal came back where the borrower owes less than 80%, the pmi was...
READ MOREWhy collect 2-3 months of insurance premium at closing when we are paying the first year of premium already?
Thursday, 16 February 2012 16:08
A borrower pays one year of insurance premium up front to keep the home protected for one year from the purchase date. For example, if one closes on February 10, 2011; so that first year premium gets one through to February 10, 2012. However, although the loan closed on February 10th, the first ...
READ MOREWhat is a plain English definition of the Aggregate Adjustment on the HUD Settlement Statement?
Thursday, 16 February 2012 14:09
When the lender figures the number of months to collect in escrows for taxes and insurances based on due dates for each and the first payment due date for the mortgage, it is compared to Federal guidelines which dictate the maximum cushion allowed. If the amount calculated by the lender is too hig...
READ MORECan I use unemployment income or compensation to qualify for a mortgage loan?
Tuesday, 02 August 2011 13:21
A very little known fact, even among mortgage professionals, is that you can count unemployment income in certain circumstances for a mortgage loan. If it is customary for the job and expected to continue for the next 3 years, unemployment compensation can be counted as income and either averaged ...
READ MORESome FAQs about VA
Tuesday, 31 May 2011 17:31
Q: I want to buy a house with a VA loan. Do I need to occupy the property? A: The law requires that you certify that you intend to occupy the property as your home. This requirement is considered satisfied if you actually intend to occupy the property as your home and in fact so occupy it when the ...
READ MOREEven More FAQs about FHA Mortgages
Monday, 23 May 2011 14:09
How does FHA view borrowers who change jobs frequently? FHA does not impose a minimum length of time a borrower must have held a position of employment to be eligible. However, the lender must verify the borrower's employment for the most recent two full years. The bor...
READ MOREMore FAQs about FHA Mortgages
Thursday, 19 May 2011 13:02
Q: Where can you find HUD / FHA’s minimum property standards? FHA's minimum property standards are located in three handbooks: 4905.1 for existing construction and 4145.1 and 4910.1 for new construction. Q: Must a new or existing home have a stove in order to be eligible for FHA fi...
READ MORESome FAQs about FHA Mortgages
Tuesday, 17 May 2011 12:52
Q: For an FHA loan, do I have to count loans with deferred or projected payments? If a debt payment, such as a student loan, is scheduled to begin within twelve months of the mortgage loan closing, the lender must include the anticipated monthly obligation in the underwritin...
READ MORESome FAQs about USDA Mortgages
Tuesday, 17 May 2011 12:37
Q: Can I refinance a USDA guaranteed mortgage?Answer: Yes, as long as the property is still the primary residence, the borrower’s credit and income still meet guidelines, and there is no cashout received. Q: Can I purchase a home that has a pool using a USDA mortgage?Answer: We must obtain a po...
READ MOREWhat if I have not been on my job long enough to have a paystub?
Friday, 13 May 2011 17:42
For many options, a signed offer letter and/or employment contracts are allowed for calculating income and receiving a loan approval. There are guidelines as well for how soon the borrower must start the job by or after closing, depending on the product. For more details, contact us....
READ MORECan I purchase a home from a relative without down payment?
Thursday, 12 May 2011 14:21
If you are purchasing a home to be a primary or secondary residence from a relative, the equity in the property could be used as down payment if it is gifted from the related seller. If the equity is less than 20%, the buyer must contribute at least 5% of the price to the transaction but if the eq...
READ MORECan I close while my spouse is deployed overseas?
Thursday, 10 March 2011 13:02
Yes you can. With a military Power of Attorney, a spouse can sign for both borrowers. At closing, we would just have to certify that the deployed spouse is “alive and well”. We are experts on telling you up front what is needed to process and close your mortgage. Being in the military ca...
READ MOREFloat Down Option
Tuesday, 01 March 2011 19:17
What if a borrower locks a rate and interest rates go down during the processing of my loan? Solution: For many fixed products we have the float down option. Click here for the details....
READ MOREIs a Credit Card Good or Bad?
Sunday, 30 January 2011 00:35
Believe it or not, having active credit cards is a very good thing for your credit scores. Of course one should use good judgment in using a credit card so that balances are not out of control. Actually 30% of your credit score is based on the relationship (percentage) of the balance compared to...
READ MOREFHA Commonly Asked Questions
Wednesday, 26 January 2011 16:35
FHA Commonly Asked Questions : Our products and underwriting department put together this extensive list of interesting questions and answers....
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 30
Friday, 12 November 2010 13:03
This series of FAQ’s is a sampling of the more popular questions we are asked in the course of a day. If you would like for me to answer any other questions that were not addressed, either give me a call or submit the question under “contact me today”. Selling, when done properly, is abou...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 29
Thursday, 11 November 2010 23:21
Q: Do I need to save 2% in rate to make a refinance worthwhile? A: Most often the answer is No. This has commonly been used as the standard for whether or not to refinance. I think it is more complex or deeper than this. You need to actually analyze what the refinance does for you and figure ...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 28
Wednesday, 10 November 2010 13:03
Q: Do I have to pay an application or credit report fee up front at application? A: No. While many will charge for these items up front, we do not. We do not charge up front for the loan application, credit report, or loan preapproval. Once preapproved and you know our “numbers”, you can ...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 27
Tuesday, 09 November 2010 14:58
Q: If I have late payments this past year does that mean I will be denied for a mortgage loan? A: Not necessarily. Most loans are run through an automated underwriting system for loan approval and they will weigh everything into the scenario such as overall credit, debt to income ratio, monetary ...
READ MOREA "Series of FAQs" from the Desk of Russell Smith" Day 26
Monday, 08 November 2010 13:10
Q: I have a job where I am paid cash under the table, can I use this income for a mortgage? A: No, if you are not reporting the income to the IRS, it cannot be used. Even if you prove regular deposits of the cash, it cannot be used. The basic definition of income is: Documentable, legal, stab...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 25
Friday, 05 November 2010 19:47
Q: I have a mortgage now, so I get a tax deduction, Right? A: Not necessarily. You know how you so often see “Consult your tax advisor” when someone says mortgage interest and points may be tax deductible? The reason is, your mortgage company does not prepare your tax return or know your ta...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 24
Thursday, 04 November 2010 17:24
Q: Are rates as low as they are going to go? I think the only way anyone could get this one right is if rates are 0%, but then the government could start paying us interest to purchase a home! Nahhhhhh! A: The best way and the way I answer this is: The most educated and seasoned economist, TV...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 23
Wednesday, 03 November 2010 14:36
Q: If my mortgage is transferred to another company, can my mortgage terms change? A: No, your mortgage is a binding contract. When it is sold to another lender, the terms cannot change. The documents you sign at closing are binding. Closing documents are assigned to new servicer and they inc...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 22
Tuesday, 02 November 2010 14:35
Q: Can I have a co-signor that will not live in the house on my loan to help me qualify? A: Yes, under certain circumstances. FHA loans will allow a “non-occupying” co-borrower on the loan if it is a family member. The primary borrower does need to meet minimum credit guidelines. The co-b...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 21
Monday, 01 November 2010 18:24
Q: What is the minimum credit score I need to qualify for a mortgage? A: Our minimum credit score needed at this time on all programs is a 620 middle score. The middle score means ignoring the high and the low score of the 3 credit bureaus and using the middle. Keep in mind, just because someon...
READ MOREA "Series of FAQs" from the Desk of Russell Smith" Day 20
Friday, 29 October 2010 12:16
Q: How much of a mortgage loan can I afford? A: The most important thing to understand is that you must answer this question for yourself. A mortgage lender cannot tell you how much you can afford to pay each month -- they can only tell you what they're willing to lend you. It's possible to get app...
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