Read your article on negative arm loans, and for the person who only owns a residence and most real estate investors it will not work. I own several properties, and the parcel to be refinanced is ocean front…so is going up in value more than the negative arm would be when refinanced after prepay penalty …
Continue reading “Negative Amortization Loan Issues on Investment Property”
Many folks have no idea how qualified they are as borrowers. There are two ratios that, together with credit score, tell how qualified you are for a loan. The more important of these two ratios is Debt-to-Income ratio, usually abbreviated DTI. The article on that ratio is here. The less important, but still critical, ratio …
Continue reading “Loan Qualification Standards – Loan to Value Ratio”
Many people have no clue how qualified they are as buyers, or borrowers. There are two ratios that, together with the credit score, determine how qualified someone is for a loan. The first, and by far the more important, is debt to income ratio, usually abbreviated DTI. This is a measurement of how easy it …
Continue reading “Loan Qualification Standards – Debt to Income Ratio”
Working with a borrower all day today. Truly ugly situation because he doesn’t have a long history of credit, and this is the major obstacle to getting the loan done. He actually makes the money, and has a sufficient history of making the money to justify the loan “full documentation”. But: He only has one …
Continue reading “Improving your Credit Score and Tradelines”
I found this article by Ken Harney in the paper. WASHINGTON – Call it funny money for the housing boom: Now you don’t need actual cash in the bank to buy a house. All you need is somebody who says you’ve got money in the bank. Need a hundred grand on deposit to convince a …
Continue reading “Asset and Income Rentals – Borrowing Trouble at Usurious Rates”
Every once in a while I get someone who is unhappy with required paperwork for privacy reasons. There are three forms that are the driving force behind this. The first is the standard form for a mortgage loan application, known in the business as the 1003. Admittedly, the form does ask for rather a lot …
Continue reading “Privacy Concerns in Real Estate Transactions”
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 Deed of Trust, which does not. For practical purposes they are similar, yet I have …
Continue reading “Second Trust Deeds and Loan Subordination”
My article on Option ARM and Pick a Pay – Negative Amortization Loans is one of my most popular. It’s number one for multiple search engines and several ways of running the search. If I don’t get at least 20 hits a day on it, it must be a sign that the public has caught …
Continue reading “Negative Amortization Loans – More Unfortunate Details”
One reason to check your referral logs every day: Sometimes you can find great material for an article. I got one about the three day right of rescission. This is a feature (or bug, depending upon your situation) with every refinance on a home that is a primary residence. The reason it exists is that …
As of July 1, 2005, mortgage providers have to have explicit written authorization to run credit. I am not certain of the political forces that made this bill, and it is still not clear to me whether this extends to non-mortgage credit providers. If it does, this is probably one of the niftiest consumer protection …
