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Own your own biz? Get these ducks in a row, get a mortgage.1. Flesh out your credit score. Depending on the loan type you intend to qualify for you will need to meet the minimum credit score standards. Federal Housing Administration loans (FHA) typically require at least a minimum 620 middle credit score whereas conventional loans typically require a minimum 660 middle credit score. It is always a good idea to check your credit report prior to entering in a contract to buy a house and correct any errors you find on your credit report.2. Build a down payment. FHA requires a minimum 3.5% down and conventional financing requires a minimum 5% down payment. Although gift funds are acceptable for some or all of a down payment, using your own funds will make you a better risk. In either case, a larger the down payment may be considered a compensating factor.3. Show stable or increasing income.Lenders will use your last 2 years of tax returns to calculate your income. They will review your tax schedules and add back depreciation, amortization/casualty loss, and depletion to your net profit or loss. The lender will also ask for a year-to-date profit and loss statement to verify your income is stable and not decreasing. If your income is decreasing, a lender will likely use the worst case scenario as your qualifying income instead of your last 2 years’ average income.4. Contribute to reserves.Most loans require 2 months or less of mortgage payments (principal & interest, taxes, insurance, and private mortgage insurance) left in the bank at the time of closing. The greater amount of mortgage payment reserves you have in your bank the better risk you will be in the eyes of the lender.5. Organize business and personal debts.If you have debts that are paid directly through your business, you must have separate business bank account to be able to prove with debts are paid through the business, thereby not counting them in your personal debt ratio. Lenders will require a copy of the last 12 months of cancelled checks to verify the debt is being paid directly out of the business account. If you intend to buy a house avoid any new business debt for the 12 month period prior to purchasing a house. New business debt (where you cannot provide 12 months of cancelled checks from your business account) will likely be counted as personal debts by your lender.6. Make sure your business is recognized by your state.Lenders will need to verify you have officially been in business for at least 2 years. A business license is typically required but a letter from your CPA is often accepted.Full article: http://www.lender411.com/getting-a-mortgage-while-self-employed/

Own your own biz? Get these ducks in a row, get a mortgage.

1. Flesh out your credit score. 

Depending on the loan type you intend to qualify for you will need to meet the minimum credit score standards. Federal Housing Administration loans (FHA) typically require at least a minimum 620 middle credit score whereas conventional loans typically require a minimum 660 middle credit score. It is always a good idea to check your credit report prior to entering in a contract to buy a house and correct any errors you find on your credit report.

2. Build a down payment. 

FHA requires a minimum 3.5% down and conventional financing requires a minimum 5% down payment. Although gift funds are acceptable for some or all of a down payment, using your own funds will make you a better risk. In either case, a larger the down payment may be considered a compensating factor.

3. Show stable or increasing income.

Lenders will use your last 2 years of tax returns to calculate your income. They will review your tax schedules and add back depreciation, amortization/casualty loss, and depletion to your net profit or loss. The lender will also ask for a year-to-date profit and loss statement to verify your income is stable and not decreasing. If your income is decreasing, a lender will likely use the worst case scenario as your qualifying income instead of your last 2 years’ average income.

4. Contribute to reserves.

Most loans require 2 months or less of mortgage payments (principal & interest, taxes, insurance, and private mortgage insurance) left in the bank at the time of closing. The greater amount of mortgage payment reserves you have in your bank the better risk you will be in the eyes of the lender.

5. Organize business and personal debts.

If you have debts that are paid directly through your business, you must have separate business bank account to be able to prove with debts are paid through the business, thereby not counting them in your personal debt ratio. Lenders will require a copy of the last 12 months of cancelled checks to verify the debt is being paid directly out of the business account. If you intend to buy a house avoid any new business debt for the 12 month period prior to purchasing a house. New business debt (where you cannot provide 12 months of cancelled checks from your business account) will likely be counted as personal debts by your lender.

6. Make sure your business is recognized by your state.

Lenders will need to verify you have officially been in business for at least 2 years. A business license is typically required but a letter from your CPA is often accepted.

Full article: http://www.lender411.com/getting-a-mortgage-while-self-employed/

Filed under Mortgage Loan mortgage advice SelfEmployed glasses blonde real estate home

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Let’s go step by step - social for mortgage marketing!Every once in a while we put out content for the pros who actively use our site. With this article, we wanted to provide specific information for crafting social posts and how to communicate on each network effectively, so if you’re a veteran, steer clear! But this tutorial will hopefully educate LOs who are green in the social sphere. So, why go digital for mortgage marketing at all?According to recent NAR studies: 50% of all home buyers use the internet as the main tool for their new home search31% of home buyers are ages 33 or younger76% of this demographic were first time home buyers74% stated their greatest need was to understand the home buying processHome buyers are online, pure and simple. But social media marketing is not always a cake walk. A generic post here and there is not going to to get the attention of search engines for greater authority and search engine ranking. Social activity takes time, patience and enthusiasm. If you do not care to spend time on social media, invest your time elsewhere! How do Loan Officers market on social media?A low cost social media marketing strategy will allow you to maintain contact with your current and past customers as well as allow you to create new relationships and ideally get you noticed online.Know Your PlatformSome of the most common social media outlets are Facebook, LinkedIn, Twitter, Google Plus, and Pinterest. Each platform has a unique flavor that social marketers need to understand. Speak the language of the platform and you’re speaking the language of your customers and real estate agents. Facebook! : Keep it casual. Don’t be wordy, and don’t be afraid to invest in some ads since Facebook has some of the lowest cost-per-click out there. LinkedIn! : Stay professional, but insert your opinion. Start a stimulating conversation with an industry-related blog post. Twitter! : Share everything, but keep the meat of your links in the short character limit your posts allow. Reading up on how to formulate awesome headlines will help tremendously. Google Plus!!! : Be informative. Lengthy posts are completely acceptable so long as they contain top tips or new information of interest. Pinterest! : Think graphics and hashtags. Loan officers can learn from real estate agents, who are killing it on Pinterest.Continue reading here: http://www.lender411.com/social-media-marketing-loan-officers/
 
Let’s go step by step - social for mortgage marketing!

Every once in a while we put out content for the pros who actively use our site. With this article, we wanted to provide specific information for crafting social posts and how to communicate on each network effectively, so if you’re a veteran, steer clear! But this tutorial will hopefully educate LOs who are green in the social sphere. 

So, why go digital for mortgage marketing at all?

According to recent NAR studies:
 
50% of all home buyers use the internet as the main tool for their new home search
31% of home buyers are ages 33 or younger
76% of this demographic were first time home buyers
74% stated their greatest need was to understand the home buying process

Home buyers are online, pure and simple. But social media marketing is not always a cake walk. A generic post here and there is not going to to get the attention of search engines for greater authority and search engine ranking. Social activity takes time, patience and enthusiasm. If you do not care to spend time on social media, invest your time elsewhere! 

How do Loan Officers market on social media?

A low cost social media marketing strategy will allow you to maintain contact with your current and past customers as well as allow you to create new relationships and ideally get you noticed online.

Know Your Platform

Some of the most common social media outlets are Facebook, LinkedIn, Twitter, Google Plus, and Pinterest. Each platform has a unique flavor that social marketers need to understand. Speak the language of the platform and you’re speaking the language of your customers and real estate agents. 

Facebook! : Keep it casual. Don’t be wordy, and don’t be afraid to invest in some ads since Facebook has some of the lowest cost-per-click out there. 

LinkedIn! : Stay professional, but insert your opinion. Start a stimulating conversation with an industry-related blog post. 

Twitter! : Share everything, but keep the meat of your links in the short character limit your posts allow. Reading up on how to formulate awesome headlines will help tremendously. 

Google Plus!!! : Be informative. Lengthy posts are completely acceptable so long as they contain top tips or new information of interest. 

Pinterest! : Think graphics and hashtags. Loan officers can learn from real estate agents, who are killing it on Pinterest.

Continue reading here: http://www.lender411.com/social-media-marketing-loan-officers/

Filed under real estate mortgage marketing Social media

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What Mortgage Can I Afford?If you’re in the market for a new home, you are most likely wondering what mortgage you can afford. There are many factors to be considered when you’re determining what mortgage amount is the right amount for you. Plan your mortgage budget with these tips in mind:Could Versus ShouldThe first factor you need to consider is how much you could borrow versus how much you should borrow. You need to make sure you are living within your means and considering all of your monthly expenses in addition to your monthly mortgage payments. In order to do this, you should make a monthly household budget that includes your personal living expenses and associated expenses of living in a house.A borrower’s worst enemy is budget denial. Be honest with yourself - include expenses that are not necessities but you know you won’t be giving up anytime soon; they tend to be overlooked:Hair cuts or coloringsNail appointmentsCountry club membershipRestaurant spendingCable TVTrips to the moviesNever run away from or underestimate your monthly spending. Otherwise, be prepared for a major change in lifestyle: homes require regular maintenance and as long as homeowners remain conscious of retaining savings while spending a little mad money, a mortgage can be balanced into monthly budgets big and small. Continue reading to calculate expenses: http://www.lender411.com/featured-article-what-mortgage-can-i-afford
 
What Mortgage Can I Afford?

If you’re in the market for a new home, you are most likely wondering what mortgage you can afford. There are many factors to be considered when you’re determining what mortgage amount is the right amount for you. Plan your mortgage budget with these tips in mind:

Could Versus Should

The first factor you need to consider is how much you could borrow versus how much you should borrow. You need to make sure you are living within your means and considering all of your monthly expenses in addition to your monthly mortgage payments. In order to do this, you should make a monthly household budget that includes your personal living expenses and associated expenses of living in a house.

A borrower’s worst enemy is budget denial. Be honest with yourself - include expenses that are not necessities but you know you won’t be giving up anytime soon; they tend to be overlooked:

Hair cuts or colorings
Nail appointments
Country club membership
Restaurant spending
Cable TV
Trips to the movies

Never run away from or underestimate your monthly spending. Otherwise, be prepared for a major change in lifestyle: homes require regular maintenance and as long as homeowners remain conscious of retaining savings while spending a little mad money, a mortgage can be balanced into monthly budgets big and small. 

Continue reading to calculate expenses: http://www.lender411.com/featured-article-what-mortgage-can-i-afford

Filed under mortgage advice Mortgage Loan real estate burgundy

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PMI - who needs it?A lot of people. But Private Mortgage insurance can be eliminated without tricks or gimmicks. Add Value To Your Home by UpgradingOne easy way to get rid of PMi is to add value to your home by performing upgrades. By upgrading, you decrease your loan-to-value (LTV) ratio by enhacing the denominator. If your house is worth more as a result of the upgrades, you edge closer to attaining that 80% LTV ratio that will allow you to remove the private mortgage insurance. When you are upgrading your home, make sure to perform high-value upgrades:Remodeling your kitchen.Enhancing bathroom.Renovating basement.Pay Off Your MortgageThe most direct way to get rid of mortgage insurance is to simply make your monthly mortgage payments on time. When you have finally have an 80% LTV ratio, you can ask your lender to remove the private mortgage insurance. Depending on how large your down payment was, this could take a while to do.  If you can afford to do so, try making one or two extra mortgage payments each year in order to expedite the process.RefinanceLast but not least, the trusty refi can help rid your wallet of PMI. If you refinance, you are essentially qualifying for a new loan and if the loan sum is lower, you may have attained the 80% LTV ratio that your lender wants. This is a great option because you can lower your interest rate at the same time.More info about PMI removal and MI for FHA loans: http://goo.gl/duFGs0

PMI - who needs it?

A lot of people. But Private Mortgage insurance can be eliminated without tricks or gimmicks. 

Add Value To Your Home by Upgrading

One easy way to get rid of PMi is to add value to your home by performing upgrades. By upgrading, you decrease your loan-to-value (LTV) ratio by enhacing the denominator. If your house is worth more as a result of the upgrades, you edge closer to attaining that 80% LTV ratio that will allow you to remove the private mortgage insurance. When you are upgrading your home, make sure to perform high-value upgrades:

Remodeling your kitchen.
Enhancing bathroom.
Renovating basement.

Pay Off Your Mortgage

The most direct way to get rid of mortgage insurance is to simply make your monthly mortgage payments on time. When you have finally have an 80% LTV ratio, you can ask your lender to remove the private mortgage insurance. Depending on how large your down payment was, this could take a while to do.  If you can afford to do so, try making one or two extra mortgage payments each year in order to expedite the process.

Refinance

Last but not least, the trusty refi can help rid your wallet of PMI. If you refinance, you are essentially qualifying for a new loan and if the loan sum is lower, you may have attained the 80% LTV ratio that your lender wants. This is a great option because you can lower your interest rate at the same time.

More info about PMI removal and MI for FHA loans: http://goo.gl/duFGs0

Filed under Mortgage Loan private mortgage insurance pmi knockout boxing real estate advice

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Should I get pre-qualified or pre-approved for a mortgage ?Pre-QualificationA pre-qualification is typically a verbal assessment of a borrower’s buying power based on their stated income, debts, down payment, and credit report. The lender would likely take your information over the phone or sometimes an office consultation. Based on the verbal information discussed and the credit report a lender typically issues a pre-qualification letter (sometimes titled pre-approval letter, despite being a true pre-qualification). There is usually no cost for a pre-qualification.Pre-ApprovalA pre-approval is a fully verified assessment of a borrower’s financial situation. Documentation such as pay stubs, bank statements, tax returns and W-2s are collected and reviewed. Depending on your financial history, other documentation such as a divorce decree, bankruptcy schedules and discharge, business returns, or other documentation could be required. A tri-merged credit report would be required and employment and assets would be verified.The mortgage file would be reviewed by an underwriter possibly resulting in a conditional commitment. A conditional commitment would require you to provide additional documentation or explanation letters to receive a full pre-approval. Once you receive the final pre-approval a commitment letter would be issued from the lender. There is normally a minimal fee for a pre-approval. Pre-approvals are typically good for 90 to 120 days depending on loan type.Read the full article to see when a pre-approval may be necessary: http://goo.gl/ltBFnC

Should I get pre-qualified or pre-approved for a mortgage ?

Pre-Qualification

A pre-qualification is typically a verbal assessment of a borrower’s buying power based on their stated income, debts, down payment, and credit report. The lender would likely take your information over the phone or sometimes an office consultation. Based on the verbal information discussed and the credit report a lender typically issues a pre-qualification letter (sometimes titled pre-approval letter, despite being a true pre-qualification). There is usually no cost for a pre-qualification.

Pre-Approval

A pre-approval is a fully verified assessment of a borrower’s financial situation. Documentation such as pay stubs, bank statements, tax returns and W-2s are collected and reviewed. Depending on your financial history, other documentation such as a divorce decree, bankruptcy schedules and discharge, business returns, or other documentation could be required. A tri-merged credit report would be required and employment and assets would be verified.

The mortgage file would be reviewed by an underwriter possibly resulting in a conditional commitment. A conditional commitment would require you to provide additional documentation or explanation letters to receive a full pre-approval. Once you receive the final pre-approval a commitment letter would be issued from the lender. There is normally a minimal fee for a pre-approval. Pre-approvals are typically good for 90 to 120 days depending on loan type.

Read the full article to see when a pre-approval may be necessary: 
http://goo.gl/ltBFnC

Filed under Mortgage Loan real estate

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How the Freddie Mac Hardest Hit Fund helps lenders help borrowersCreated in response to serious economic downturn, HHF can potentially help disadvantaged mortgage borrowers who are in need of help:Transition Assistance ProgramsThese programs are meant to help struggling homeowners move into housing that is more affordable.  The program gives funds to help the homeowners perform a short sale or a deed-in-lieu.Modification Assistance ProgramsModification Assistance Programs provide funds to borrowers so they can meet loan-to-value requirements, have a net present value result, or pay any other past due amounts that would prevent them from receiving the loan modification.Mortgage Reinstatement ProgramsThese programs give borrowers a one-time payment in order to make a borrower’s overdue mortgage current.Unemployment Mortgage Assistance ProgramThis program helps borrowers meet their monthly mortgage payments if they are currently unemployed.Mortgage pros - please feel free to chime in with updates, if any.Requirements and Freddie Mac resources for lenders and borrowers: http://goo.gl/lnR5Q9
 
How the Freddie Mac Hardest Hit Fund helps lenders help borrowers

Created in response to serious economic downturn, HHF can potentially help disadvantaged mortgage borrowers who are in need of help:

Transition Assistance Programs

These programs are meant to help struggling homeowners move into housing that is more affordable.  The program gives funds to help the homeowners perform a short sale or a deed-in-lieu.

Modification Assistance Programs

Modification Assistance Programs provide funds to borrowers so they can meet loan-to-value requirements, have a net present value result, or pay any other past due amounts that would prevent them from receiving the loan modification.

Mortgage Reinstatement Programs

These programs give borrowers a one-time payment in order to make a borrower’s overdue mortgage current.

Unemployment Mortgage Assistance Program

This program helps borrowers meet their monthly mortgage payments if they are currently unemployed.

Mortgage pros - please feel free to chime in with updates, if any.

Requirements and Freddie Mac resources for lenders and borrowers: http://goo.gl/lnR5Q9

Filed under freddie mac mortgage advice Mortgage Loan real estate unemployment moving

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Choosing the right mortgage pro is about more than a license numberBefore working with any mortgage company you should of course verify licensing and NMLS registration. But once you’ve gotten the technical qualifications covered, what else should you be looking for to find the best mortgage professionals?:Focus Expertise Communication IntegrityWork Ethic Courage AttitudePassion Self-ControlReputation Why these qualities should be non-negotiable:http://www.lender411.com/best-mortgage-lenders/
 
Choosing the right mortgage pro is about more than a license number

Before working with any mortgage company you should of course verify licensing and NMLS registration. But once you’ve gotten the technical qualifications covered, what else should you be looking for to find the best mortgage professionals?:

Focus 
Expertise 
Communication 
Integrity
Work Ethic 
Courage 
Attitude
Passion 
Self-Control
Reputation 

Why these qualities should be non-negotiable:http://www.lender411.com/best-mortgage-lenders/

Filed under real estate mortgage pop art color block

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Buying a home and have no idea what you’re doing?The word mortgage can be scary. Its root is the term “death contract” and it sounds really expensive and wait, what’s an underwriter?…Is that like UNDERTAKER?! Home buyers can chill. There are plenty of resources online that allow for maximum hand holding and a smooth mortgage process. Inside ours you’ll find beyond specific tips for:1. Budget2. Pre-approval3. Home Shopping4. Loan application5. Mortgage ClosingTake a deep breath and go get a death contract. http://www.lender411.com/beginner-mortgage-process-steps
 
Buying a home and have no idea what you’re doing?

The word mortgage can be scary. Its root is the term “death contract” and it sounds really expensive and wait, what’s an underwriter?…Is that like UNDERTAKER?! 

Home buyers can chill. There are plenty of resources online that allow for maximum hand holding and a smooth mortgage process. Inside ours you’ll find beyond specific tips for:

1. Budget
2. Pre-approval
3. Home Shopping
4. Loan application
5. Mortgage Closing

Take a deep breath and go get a death contract. http://www.lender411.com/beginner-mortgage-process-steps

Filed under first time home buyer real estate Mortgage Loan dream house

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No Mortgage Insurance? Yes, please.Fannie Mae HomePath is a specific type of conventional loan that differs slightly from other conventional loans. A HomePath loan offers borrowers a 5% down payment with no mortgage insurance and no appraisal. Often, the rates are higher than conventional mortgages since there’s no mortgage insurance required. Here are the the standard HomePath mortgage qualifications:1. Buy HomePath REO Property2. 660+ Credit Score3. Appropriate Use of Home4. 45% or less DTIMore details and a link to HomePath REO homes: http://goo.gl/CSwaZ3

No Mortgage Insurance? Yes, please.

Fannie Mae HomePath is a specific type of conventional loan that differs slightly from other conventional loans. A HomePath loan offers borrowers a 5% down payment with no mortgage insurance and no appraisal. Often, the rates are higher than conventional mortgages since there’s no mortgage insurance required. Here are the the standard HomePath mortgage qualifications:

1. Buy HomePath REO Property
2. 660+ Credit Score
3. Appropriate Use of Home
4. 45% or less DTI

More details and a link to HomePath REO homes: http://goo.gl/CSwaZ3

Filed under homepath Mortgage Loan real estate fannie mae