VA real estate listings and homes for sale, home buying, home selling information – e-mortgageinfo.com Mortgage Lending

My New Blog

Too Cool for School: How to Buy a Kiddie Condo for Your College Student

April 9th, 2012 10:22 AM

What requires little to no income from the borrower, has a fantastic rate and only 3.5% down?

A Kiddie Condo loan!

And it doesn’t apply ONLY to condos!

What better way to purchase a home for your son or daughter who is headed off to college? It’s a no-brainer! The process of buying a Kiddie Condo is simple – your child applies as the PRIMARY borrower on an FHA loan (so they do need to have a credit score) and you and/or your spouse are the co-mortgagors. Your income and assets are used to qualify, and rather than needing a large down payment--which is required to buy an investment property--the standard FHA down payment of 3.5% is all that is needed. Couple this with the fantastic FHA rates and it’s a WIN-WIN for everyone! And yes, you can rent out other rooms…just as long as your child is living there.

An added benefit of the Kiddie Condo loan is that it helps build your child’s credit score as long as the payments are made on time. Payment history makes up a huge portion of the credit score so make sure you know that the payment is made on time each month…better yet, set it up for automatic draft. Helping your child build their credit is one of the best gifts you can give them. They will be ready to “fly” on their own with a strong credit score all because you helped them purchase their first home…a Kiddie Condo!

If you have children in college (or near college age) call me for all the details.

Posted by Phil Goldberg on April 9th, 2012 10:22 AMPost a Comment (0)

What if Your Lender Goes Out of Business?

April 9th, 2012 10:20 AM

One of the questions I am asked quite frequently is, "What happens if the lender I got my mortgage from goes out of business?"

That is a great question! I think a lot of people are concerned that they will somehow lose their home, or that the bank will ask for the loan to be paid back immediately. Well, neither of those things can happen.

Your debt is a valuable asset of the bankrupt lender and it will be sold and transferred to another lender. So all it means is that the firm receiving your payment will change.

You see the firm that receives your payment is called the loan servicer, and they may or may not own the actual mortgage itself. Most loans today are serviced by specialized servicing agents who don't own the loans but collect a fee from the owner to process all the payments and other paperwork, like collecting escrows.

Transfers of servicing occur quite a bit, occasionally because the servicing firm goes bankrupt, but more commonly because the servicing contracts get sold.

When a lender buys your mortgage they assume all the terms and conditions of your original loan. By law they cannot change anything other than where you mail the payment.

If you ever have questions and you want honest answers, don't hesitate to give me a call.

Thanks again for letting me answer all your financing questions. I look forward to talking with you soon!

Posted by Phil Goldberg on April 9th, 2012 10:20 AMPost a Comment (0)

The Paper Trail: Rules for Verifying Gift Funds on FHA Loans

March 28th, 2012 2:13 PM

One of the issues that always come up is how much money your clients plan to use for their down payment. However, what is rarely discussed is, “where is the money coming from for the down payment and closing costs?”

When working with FHA buyers and getting them pre-approved, if they say they are getting all (or part) of the money from a gift, FHA requires a “paper trail.” I want to share with you exactly what is needed because this alone could hold up closing—or kill a deal.

The gift letter itself must contain the following verbiage:

· Name, address and telephone number of the donor

· The dollar amount of the gift

· The relationship of the donor to the borrower

· That no repayment is required

There are four ways to verify the transfer of the funds (only one is required ):

1. If funds are already in a borrower’s account…

a. Obtain a copy of the withdrawal slip from donor’s account

b. Obtain a copy of deposit slip and bank statement showing the deposit into borrower’s account.

2. If funds are provided at the closing table…

a. Obtain a copy of withdrawal slip from the donor’s account

OR, obtain a bank statement showing the withdrawal from donor’s account

b. Must be paid in the form of a certified check

3. If funds are going to be “wired” at closing…

a. Donor to provide documentation of the wire transfer

4. If donor is borrowing funds...

a. Donor to document the loan

b. Funds were borrowed from an acceptable source—bank, credit union, home equity line of credit, etc.

c. Cash on hand is NOT an acceptable source of gift funds

Please call me if you find yourself working with FHA borrowers who mention they are getting money from relatives to help them buy a home. We’ll need to let them know what “paper trail” they will need to follow.

Posted by Phil Goldberg on March 28th, 2012 2:13 PMPost a Comment (0)

Deceptively Simple Ways to “Shop” for a Realtor® That’s Right for You!

March 24th, 2012 2:29 PM

If you’re like most people, you view buying or selling a home with a mixture of fear and anticipation. It’s an exciting, emotional time as you move forward to a new chapter in your life. With so much going on, it’s not unusual that most people feel a bit overwhelmed when choosing a Realtor®.

While friends, family and coworkers are a good source of referrals, their needs may have been different – they may have bought or sold a luxury property while you might be a First Time Home Buyer looking for a single family starter home. So be sure to ask the agent the type of property, price range and areas in which they specialize.

The Internet is a good resource but it is not a substitute for working with a Realtor®. The Internet offers some good tools, but it is only a starting point. If you’re selling, be wary of websites that list your home in the MLS for a flat fee and discourage you from working with a Realtor®. Yes, they will take your money and post the information you provide to them, but after that you are on your own. Is it worth it to cut corners on something as important as selling your home? While at first glance real estate commissions may seem pricey, they are really quite reasonable when you consider the value received vs. the dollars spent.

Work with a Realtor®. Licensing requirements are the same for all agents, but only those who are members of the National Association of Realtors® and agree to be bound by NAR’s Code of Ethics can call themselves REALTORS®. And only Realtors® have access to the Multiple Listing Service (MLS), a very powerful tool for both buyers and sellers.

Verify that the Realtor’s® license is valid and in good standing and check if any complaints were filed. Then decide if you feel more comfortable working with a national brokerage or a small, local one. It is important to select a brokerage that can accommodate your unique needs. Visit the office and meet the agent personally to get a “feel” for the atmosphere and dynamics of each office.

Ask what designations the agent holds. In today’s market, it is important to work with an agent who is either a Short Sale and Foreclosure Resource (SFR) or Certified Distressed Property Expert (CDPE) if you plan to buy or sell such a property.

Find an agent who takes time to answer your questions and can act as your local resource. The best agents can help to make your real estate transaction seamless by directing you to various resources (insurance, inspectors, mortgage loan professionals, tax or real estate attorneys, etc.).

Don’t list with an agent simply because they will accept the lowest commission. You get what you pay for and, while price is always a factor, it alone should not be the deciding factor.

Conversely, don’t list with an agent only because they will set the highest price or agree with your predetermined selling price, especially if values and recent transactions in your neighborhood do not support that number. Consider having a professional appraisal done to establish the fair market value. It is money well spent and a valuable tool when selling a home.

Many people assume that, because State licensing requirements are the same for all agents, all agents know the same things. Some agents go above and beyond those requirements to earn special designation. Be sure to ask about their designations and areas of expertise.

While the amount of experience an agent has is important, it should be just one of many considerations. Keep in mind that a newer agent is building their business, so they are highly motivated, and their enthusiasm and effort can more than compensate for any lack of experience.

While this primer is not all inclusive, it is intended to provide basic guidance for the novice real estate customer. There are many intangibles that will enter into your decision – the agent’s personality, your sense of whether they are honest and trustworthy, etc. Do your research, ask questions until you find an agent you feel comfortable with, make sure the agent has a clear understanding of your needs and wants and you should be just fine!

Posted by Phil Goldberg on March 24th, 2012 2:29 PMPost a Comment (0)

The Ten Commandments When Applying for a Loan

March 20th, 2012 8:43 PM

10 Commandments When Applying for a Mortgage Loan

Thou shall not change jobs or become self-employed

Thou shall not buy a car, truck or van unless you plan to live in it

Thou shall not use your credit cards or let your payments fall behind

Thou shall not spend the money you have saved for your down payment

Thou shall not buy furniture before you buy your house

Thou shall not originate any new inquiries on your credit report

Thou shall not make any large deposits into your bank account

Thou shall not change bank accounts

Thou shall not co-sign for anyone

Thou shall not purchase ANYTHING until after the closing

Posted by Phil Goldberg on March 20th, 2012 8:43 PMPost a Comment (0)