A "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 MOREView Recent Survey Results about "The Russell Smith Team"
Wednesday, 10 November 2010 14:14
After you have clicked on "read more", then click here and here to see our most recent survey results and see why "The Russell Smith Team" is the right choice. ...
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 MOREFederal Open Market Committee (FOMC) Announcement
Wednesday, 03 November 2010 21:27
Federal Reserve Released TODAY a market announcement. Click on "read more" to see the full market update. And then click on FOMC Announcement ...
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...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 19
Thursday, 28 October 2010 13:46
Q: Do you require a home inspection? A: No we don’t require one but highly recommend it. A qualified home inspector can thoroughly inspect what is probably your biggest purchase of your life to ensure that there are not serious issues in your investment. You will receive a thorough report of ...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 18
Wednesday, 27 October 2010 12:23
Q: Can you lend outside of Southeastern NC? A: Yes, we have the ability to lend in 49 of the 50 states. If you have properties or friends in other states besides NC, we can still help. Call the numbers in blue above to get started....
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 17
Tuesday, 26 October 2010 13:17
Q: I own more than 4 financed residential properties, can I get a new mortgage? A: We have special guidelines for a borrower wanting to refinance or purchase up to the 10th financed residential second home or investment property. Note that there are some additional restrictions such as additional...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 16
Monday, 25 October 2010 14:32
Q: How do I find out if my mortgage qualifies for a Home Affordable Refinance Program (HARP) with Fannie Mae or Freddie Mac? A: The HARP program allows a homeowner to refinance their mortgage when the property has experienced a decrease in value yet the borrower must qualify still on credit, income...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 15
Friday, 22 October 2010 15:27
Q: What is a loan to value (LTV) and how does it determine the size of my loan? A: The loan to value ratio is the amount of money you borrow compared with the price or appraised value of the home you are purchasing. Each loan has a specific LTV limit. For example: With a 95% LTV loan on a home pric...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 14
Thursday, 21 October 2010 14:02
Q: Can I pay my own taxes and insurance rather than include them in my mortgage payment? A: The answer is sometimes. Lenders prefer borrowers to include the taxes and insurance in their payment (called escrowing) because the lender can make sure that these items are paid. They care about this s...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 13
Wednesday, 20 October 2010 13:03
Q: If I purchase a home without a realtor, can the seller or I prepare the offer to purchase and contract? A: Yes you can, but I would not advise it. When you work with a realtor, walking you through the formal and specific language of a contract is one of the duties they perform. If a realtor ...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 12
Tuesday, 19 October 2010 14:01
Q: Why do you need all pages of my bank and other asset statements? A: Much more than just the ending balance of a statement is used in the underwriting and approval of a mortgage loan. A list of items being looked for are the following: Are there any large non-payroll deposits that could be from ...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 11
Monday, 18 October 2010 13:12
Q: Why are you asking for tax returns when I am not a self-employed borrower? A: There are many things that affect a borrower's income such as rental income, unreimbursed employee income, self-employment income, dividends/interest, ownership of another property, etc. A person may make enough money...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 10
Friday, 15 October 2010 12:48
Q: Why do I need a title search when I just had one done at my last closing a year ago? A: This is a very popular question. The purpose of a title search is to assure the lender that it will have a valid lien position that it is expecting while offering a mortgage. A new title search is looking...
READ MORE2010 Brunswick County Parade of Homes
Thursday, 14 October 2010 12:44
The 2010 Brunswick County Parade of Homes is taking place over the next 2 weekends and will feature a number of Brunswick County’s fantastic homes for people to enjoy seeing. These homes were built by Brunswick County's finest home builders. So check it out, and if you find your dream home, f...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 9
Thursday, 14 October 2010 12:32
Q: The property I am purchasing has a septic tank. Will it need to be inspected? A: Several government programs, such as USDA and VA, require a septic inspection when purchasing. Additionally our company now requires a septic inspection if the property has been vacant for an extended amount of ...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 8
Wednesday, 13 October 2010 13:09
Q: What should I expect at closing? A: First of all , for your protection and the lender, bring 2 forms of ID for each borrower. A picture ID such as a current driver’s license or passport is needed and the 2nd ID can be a credit card, social security card, and other similar items. If you are...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 7
Tuesday, 12 October 2010 13:32
Q: Can or should I obtain a new credit card or loan during the mortgage process? A: Definitely NO! Once you have made application for a mortgage, do not have others pull your credit for a new loan or credit card. There are many reasons for this: The inquiry could lower the credit score which ...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 6
Monday, 11 October 2010 12:26
Q: If I go from a salaried or hourly position to being self-employed or commissioned, is this a problem? A: Yes, at least for 1 – 2 years or more. As a salaried borrower, the income is counted in most cases immediately because it is consistent. But in the case of a commissioned employee, the ...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 5
Friday, 08 October 2010 12:31
Q: Can I rent my current home and use the income to qualify for a new home using FHA? A: Due to FHA's concern that some homebuyers in these transactions may attempt to provide misleading information regarding the rental income of the property being vacated to qualify for the new mortgage, FHA is in...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 4
Thursday, 07 October 2010 14:57
Q: Can I use my appraisal from 2 years ago? A: No way. The biggest reason an old appraisal cannot be used is because the market is so different from 5, 4, 3, 2, or even 1 year ago. As about everyone has heard, values are down and an older appraisal will not convey an accurate value. There hav...
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