Entries from Searchlight Crusade tagged with 'loan qualification'

Loan Fall-Out And The Effects Upon Consumers

This is going to be a long article and somewhat technical in places, but it needs to be covered and it's important to everyone who is thinking about getting a real estate loan. "Fall-Out" is very simple: The number...

Preapproval and Driving off Qualified Potential Buyers

People are understandably hazy on the difference between pre-qualification and pre-approval. Pre-qualification is a non-rigorous process whereby somebody says that based upon the information as presented to them, it appears you'll qualify for the loan. Pre-approval should be more rigorous....

The Difference Between a Reliable and Unreliable Prequalification or Preapproval Letter

If you don't know, chances are your agent doesn't either. Even if you know, chances are that your agent is as clueless as a newborn about loans. I and my clients get asked for all kinds of nonsense (to put...

Loan Cosigners in Real Estate - A Lot of Risk For Not Much Gain

Every so often I get questions about loan cosigners. The main borrowers do not qualify on their own, so they get someone - most often mom and dad - to cosign. Cosigners are a different thing, or so I understand,...

Considering Condos, Townhomes, and PUDs

The vast majority of the population out there wants single family detached housing. The virtues and benefits of the single family residence have been extolled ad nauseum, and the drawbacks of the alternatives are the stuff of urban legend. Unfortunately,...

Investment Property and Loan Qualification

One of the things that has constricted the most with the current paranoid lending environment is the ability to use rental income to qualify for a mortgage. It seems that lenders are seizing upon any excuse to deny income...

Getting A Loan In A Paranoid Lending Environment

A few years ago, underwriting standards were way too loose. Lenders were competing for loans, and the presumption was that with real estate having continued to gain in value, it was difficult to actually lose money on real estate....

Military Housing Allowance and Loan Qualification

One of the things that is really helping military families afford good properties is the military housing allowance and the way that lenders treat it, making it much easier for them to qualify with regards to debt to income...

Be Careful Moving Your Down Payment Money

A while ago, I wrote Sourcing and Seasoning of Funds. You'd think I have a set spiel I give out, and I do. But I had a case where I didn't think I'd need it, and it burned me....

Fifteen Year Loans: Are They A Good Idea?

My take on the matter is "mostly no", but they do have some uses. The one advantage that they usually carry a lower interest rate. There have been exceptions to this, just as there have been exceptions to the...

Builder Upgrades: Pro and Con

What I still am unclear on is the pool and how (in my opinion) it's crazy to finance $40,000 into a mortgage when you *plan* on refinancing in a few years. By *plan* I mean you take out a...

Asset and Income Rentals - Borrowing Trouble at Usurous Rates

This was originally published in 2005, but is one facet of the meltdown that is still going on, unfortunately. I found this article by Ken Harney in the paper. WASHINGTON - Call it funny money for the housing boom: Now...

Refinancing Your Property with Less Income Than You Had When You Bought

Hello, When my husband and I bought our home 2.5 years ago (two bedroom condo) we qualified for the loan ($250,000) based on both our incomes. Then I had a baby and stopped working. We've never missed a payment...

Loans Not Funded

I got a question about "what does it mean if my loan is not funded after right of rescission?" It likely means your loan provider lied to you, probably from day one. Once you have signed documents, there shouldn't be...

If The Underwriter Makes A Mistake

"challenging underwriters mistakes in housing loan paperwork" was a search that I got. You can't challenge them. Butting heads with an underwriter is stupid and counterproductive. There's only one person who gets a vote, and it's not you, whether you...

The Qualification Letter I Use for My Buyers and Require For My Listings

I have never had someone tell me they wanted more information than this letter provides. I also require the prospective loan officer to fill if out for prospective purchasers of my occasional listings. DELETED (Mortgage Corporation) Address DELETED City...

Second Trust Deeds and Loan Subordination

When you have more than one loan on your property, there are some issues you should be aware of. Keep in mind the fact that some states still use the mortgage system, requiring court action to foreclose, as opposed to...

Temporary Rate Buydowns

Every so often I run across a reference to a "rate buydown" I don't like to use them because they don't benefit the client, but I should explain them, what they are, and how they work. A rate buydown is...

Existing Debt: The Biggest Hurdle in Mortgage Loan Qualification

I got a question about what the number one obstacle is to most people qualifying for the loan on the property they want. The answer is "existing debt." Credit cards, student loans, car payments, etcetera. It seems like more people...

Loan Pre-Approval Means Nothing

The only Pre-Approval I trust is one that I wrote myself. I got this search engine hit: pre-approved loan underwriter changes terms illegal I have gone over these issues in discussing the pre-qualification. Loan officers are salespersons. There is intense...