There’s many myths about VA Mortgages and Veteran buyers that we need to dispell out there. Veteran home buyers are some the best borrowers out there and historically VA Mortgages perform better than just about any other home loan out there. I hear to often that a VA buyer’s offer is being rejected due to unsubstantiated fears regarding VA appraisals, and other factors, sadly most of these fears are born in myth from years ago and are simply not true today.
If you are listing a home, or selling a home please take a few minutes to watch the video below to learn more about VA loans and why you should strongly consider a Veteran Home buyer who is using his VA benefit to purchase a home.
This question comes up pretty often, A Veteran is seeking to purchase a home with a VA Mortgage and wants to add his girlfriend to the loan or vise versa. Maybe they are engaged and not married yet, sometimes the plans for the wedding are for a date that will come after the purchase of the first home. More often than not we hear lenders telling a Veteran that it is not possible to add a non married non veteran co-borrower to a VA Mortgage and that they must get married in order for them to both be on the loan. That is actually false, but there are a few caviats.
What started out as a simple gesture by Patrick DeFeo, a Realtor in Manatee County, Florida has quickly turned into a national movement. He shared his story and gesture with his friend, Steve Fingerman from E Loans Mortgage and the gesture of kindness to local law enforcement quickly turned into a national movement with over 30 loan officers nationally now participating
What happened in Dallas rocked all of us and once again showed us, just how fragile life can be. It also serves a reminder to all of us of how our local and state Policemen and Policewomen put their lives at risk every day to serve their communities. Most of us go about our lives and never give that risk a 2nd thought until something as tragic as Dallas makes it difficult, if not impossible to ignore.
What started out as a simple gesture by Patrick DeFeo, a Realtor with The DeFeo Realty Group in Manatee County, Florida has quickly turned into a national movement. Patrick had an idea that he wanted to give back to his local Sheriff’s office as a way of simply saying thank you for all they do for his community. He decided that he would buy the Sheriff and his deputies’ pizza, 30 of them to be exact, along with a simple note:
“Thank you Deputies for all you do for our community, I support you!”
He shared his story and gesture with his mortgage friend, Steve Fingerman from E Loans Mortgage who had the idea to turn into a national movement and shared his plan with a group of Mortgage Loan Officers across the country. The group consists of some of the most trained Loan Officers in the Country who network to collaborate through the group and share ideas and knowledge. That’s when one of its members, Michelle Dugan of The Mortgage Connection in Madison Mississippi suggested the group pick this up and do the same in their respective towns and states. The suggestion caught on immediately and before long the Loan Officers in this group who are spread across the country started collaboration and agreed to participate.
Within a couple of hours over 35 of the top mortgage professionals in the country started coordinating efforts to send Pizza’s to their local Sheriffs, Highway Patrol, and Police Departments as a way of saying thank you and showing support.
Evan Wade of Movement Mortgage in Egg Harbor Township in New Jersey says “I saw the idea posted and immediately thought, heck yes let’s do this” He goes on to say, “Our brave men and women in law enforcement put themselves out there every day, and I know many times it could probably be a thankless job, so when I saw the opportunity to give back, I thought it was fantastic”.
Jeff Powers of Nations Reliable Lending in Cincinnati Ohio whose brother is a police officer hopes this effort will continue to spread and helps change attitudes toward Police. Jeff says “There seems to be too much of a negative tone towards Police with all that’s been going on. I want to remind people that the .001% of bad does not out weight the 99.999% of the good Sheriffs, Highway Patrol and Police Officers who put their lives at risk for us daily.” He goes on to say. “That’s why I quickly jumped aboard and why I hope this effort will continue to spread through my community and others to bring more people and law enforcement together.”
Indeed what started out as a single gesture from one person was now growing into a national movement picked up by a group of Mortgage guys who decided that they as a group can make a bigger impact.
Chasity Graff of LA Lending LLC in Baton Rouge, LA says “she got in on it hoping it would inspire others around the country to do similar things. I don’t necessarily want people to send pizzas or even spend any money, I know not everyone can do that, but what I do want is for people to be aware. Be aware of what your local law enforcement officers go through daily and be thankful in a way that they can see it. If all of us went out of our way just a little bit to show our appreciation and support it would have the potential to bring tremendous positive change and that is what I think the country needs right now” Chasity was on to something because when these Loan Officers, reached out for help from their local community other people and businesses starting to jump on board by offering their foods at cost or providing other things that their local Sheriffs, Highway Patrols, and Sheriffs needed more of.
While many people tend to think they can’t make a difference in the world, this group of mortgage pro’s scattered across the country is proving otherwise. Their joint effort and collaboration has resulted in over 35 people in 35 different towns across the country bringing localized awareness and gratitude to their local Sheriffs, Highway Patrol and Police Departments.
Thank you to the following Loan Officers and Lenders across the country!!!
Michelle Dugan The Mortgage Connection Madison, MS
Steve Fingerman E Loans Mortgage Spring Hill, FL
Chasity Graff LA Lending, LLC Baton Rouge, LA
Evan Wade Movement Mortgage Egg Harbor Township, NJ
Corey Roediger CrossCountry Mortgage Ferndale, MI
Alex Jimenez AJ Nashville Team for Hancock Mortgage Partners Franklin, TN
Lori Saucier CrossCountry Mortgage Brecksville, OH
Markita Woods Queen of Mortgages Woodbridge, VA
Elizabeth Rose Hancock Mortgage Partners Grapevine, TX
Staci Stanley Fairway Independent Mortgage Denver, CO
Brian Swanson First Mortgage Company West Des Moines, IA
Kelly Belcher Key Mortgage Ink Plymouth, MI
David Goldberg CBC National Bank Shaker Heights, OH
Chris Burleson Guaranteed Rate Knoxville, TN
Gareth Beale Power Mortgage Baton Rouge, LA
Jeremy Lewis AMP Lending Austin, TX
Katy Parsons Finance of America Mortgage Portland, OR
Scott Edwards Augusta Financial Inc Santa Clarita, CA
E Loans Mortgage is proud to serve our local Florida Veterans. In honor of Veterans day, we will be waiving all origination fees for all VA borrowers who apply for a VA Loan in the month of November.
For more info call us at:
E Loans Mortgage
E Loans Mortgage Inc 4117 Mariner Blvd Spring Hill, FL 34609
Phone: 352-688-7949 Fax: 352-688-7656
Rents in Spring Hill Florida continue to rise, however mortgage rates are still historically low. With house prices starting to rebound in Hernando County this may the best time in years to purchase a home in Spring Hill FL! For quick a quick Mortgage Approval contact us at 352-688-7949 or apply online at www.e-loanmortgage.com
President E Loans Mortgage
If you are working anywhere near the real estate industry, by now you have heard about the importance the regulations known as TRID, which are effective for residential mortgage applications submitted on or after October 3, 2015. There are many questions about these new regulations and in this article we will try to answer these from a consumer and real estate practitioner point of view.
What is TRID?
TRID is the result of the Federal Consumer Financial Protection Bureau’s “Know Before You Owe” initiative in which the agency is trying to make the home buying process easier to understand for consumers as well as making important documents available before the actual closing takes place. TRID is an acronym which stands for the TILA and RESPA Integrated Disclosure Rule. Yes, the government has actually come up with an acronym to replace two acronyms. Thus, first we must explain TILA and RESPA.
TILA stands for the Truth-in-Lending Act. This law regulates all consumer lending, not just real estate finance. For example, if a consumer obtains a credit card, there will be a TIL disclosure issued for the purpose of giving the consumer the “true cost” of borrowing by factoring in borrowing fees into an overall number called the “Annual Percentage Rate” or APR. What is unique about mortgages is that an initial TIL Disclosure is required for mortgages within three business days after submitting an application and a final TIL Disclosure is required at closing. In contrast, you might obtain a credit card the same day you apply for it.
RESPA stands for the Real Estate Settlement Procedure Act. This law specifically focuses upon the regulation of residential real estate transactions. There are many aspects of RESPA, but here we will focus on another required disclosure, the “Good Faith Estimate” of Closing Cost, which also must be issued within three business days of application. RESPA also requires the issuance of a HUD-1, the final closing statement, which some years ago was aligned so that the numbers were synchronized with the initial Good Faith Estimate.
How does TRID change all of this?
The government’s goal is to make the process simpler by integrating the two disclosures into one—both upfront and at closing. Thus, there is a new disclosure required three days from application which is called a Loan Estimate. This new disclosure replaces both the Good Faith Estimate and the Truth-in-Lending Disclosures. At closing, the HUD-1 and final TILA are replaced by the Closing Disclosure.
Though these rules are designed to make the process simpler, in reality the requirements for timing, re-disclosure if changes occur before closing, and making the forms “multi-purpose,” can actually be quite complex. Even the definition of what constitutes a “business” day can be confusing.
What about the timing requirements?
Though there is no change with regard to the timing requirements after application, there are two important timing changes that take place under TRID.
- The Closing Disclosure must be provided to the consumer three business days before closing. This means that transaction’s numbers must be finalized well before the settlement date.
- The Loan Estimate must be issued seven business days before closing. Depending upon weekends and Holidays, this means that most closings must occur at least two weeks after application. In addition, if allowable changes occur, the Loan Estimate must be reissued within three business days and received by the consumer four days prior to loan closing.
What does this mean for homebuyers?
While it makes perfect sense that homebuyers should have access to their closing costs, payments and other final details well before closing, home purchases can often be fluid situations. For example, if someone is purchasing a new home, what if an option is added late in the process which would change the sales price and perhaps the final mortgage amount? Or perhaps a home inspection calls for significant repairs to the property which changes the purchase price.
Above all, this means that everyone involved in the transaction must work together in order to make sure all details are set earlier in the process. All actors must do their part:
- The applicant must get all required documents to their mortgage company promptly and make sure they are complete, legible and accurate.
- The real estate agent(s) must make sure that all contract issues are resolved very early in the process. Any changes must be communicated promptly as well.
- The title company must provide required information to the mortgage company so that the final numbers can be calculated on a timely basis.
- The mortgage company must process and underwrite the file within a time frame which will allow the final disclosures to be issued on a timely basis.
What is the consumer’s most effective tool to assure a smooth and timely closing?
The best way a consumer can ensure that the process is smooth and closes on a timely basis is to make sure that they obtain a fully underwritten pre-approval before an offer is submitted on a home. A pre-approval enables the lender’s underwriters to analyze a consumer’s documentation and issue a pre-approval subject to an acceptable sales contract, appraisal of the property and locking in a loan program. Basically, there is a must shorter timeline from contract acceptance to closing when a pre-approval is issued.
In addition, obtaining a pre-approval puts a consumer in prime negotiating position with a seller who may be entertaining multiple offers. This pre-approval basically signals to the seller that the prospect is a serious buyer.
Many times one consumer will be attempting to effect two real estate transactions in one day – selling a home and then purchasing a home. The vast majority of the time, the owner must sell the home first because they need the cash from closing to purchase the second home and typically can’t qualify with both payments. Under TRID, this more complex situation is likely going to be more difficult to coordinate because of the disclosure timing requirements. In these cases it may behoove both the buyer and seller to obtain their mortgage from the same lender so that coordination is more seamless in this regard.
Under TRID, the world of real estate transactions is changing. The purchase of a home is the most important investment for most Americans and certainly a most important lifestyle decision. It is imperative that a potential homebuyer work with a mortgage company armed with the technology and experienced staff to effectively and efficiently comply with the timing requirements of TRID, ensuring a smooth and on-time settlement.
Today, it seems many lenders are offering a mortgage to those that are looking to purchase a home. There are mortgage lenders here and there, offering the ‘lowest rates’ the ‘best financing’ and the “best terms” but what is the truth to all of this? Many times, people find themselves lured into advertising and that is probably one of the worst things that you can do. Instead, when looking for a home loan, carefully think about what you are getting in the loan first.
There are several aspects that should be carefully considered when looking at a mortgage offered by any of the lenders there. Everyone should take the time to carefully consider these things as they will determine just how much money they will ultimately pay for their home as well as the experience they will have.
Interest rates are by far the most important aspect of the home loan. This is the charge, the cost of doing business with the financial lender. This dollar amount is going to cost a different amount of money from each lender as most will offer a different rate from each other. What is important to consider is the difference that is evident from one lender to the next. Often, cutting down the rate just slightly can save thousands of dollars in the long run.The terms of the loan are also an important feature. The longer the loan is, the more interest will be charged to it and the more costly it will become. What many people think about though is the cost of the home’s monthly mortgage payment. The longer the terms of the loan are, the lower the monthly payment amount will be. Carefully find the best terms here so that you can make your monthly payments but that you can pay off your loan as quickly as possible too.</li><li>Customer service and experience is very important as well. If you do all of your banking on the web, you’ll want to make sure that this lender will offer that option to you as well. If you call the company to get a quote, they should provide you with the best of service. If they do not do it now (or you have to stay on hold for excessive time) then that is what you will get later on too.
The home loan that you select should have the best combination of these features. The better your interest rate is the lower the amount of money that you pay for your home is. There are many other things to consider as well, but this is the ideal topic that you need to know to get started with. Use the tools that are provided to you, such as a loan calculator to help you to determine what the loan will ultimately cost you. With so many lenders out there, looking for your business, you should provide your business to those that can offer you the best rates, the best terms and the overall best options to consider. A mortgage can be very costly if you do not pay attention to these details.
Most borrowers have heard of FHA home loans. They are very common. You hear about them mostly as loans for first time borrowers, which is common. However, most people don’t realize that FHA loans in Spring Hill FL can also be does for refinancing. They are not only for purchasing a house.
HUD operates FHA, which is a program designed to help borrowers who might have difficulty buying a house. If the borrower falls within FHA’s requirements FHA insures the loan for the lender, which makes the loan very low risk for the lender, which is very good for the borrower. It could mean a lower interest rate, better terms and just an overall better loan.
FHA’s requirements are; a down payment of 3.5%, the home must be under the FHA’s set loan limit for the county that the borrower lives in and a few other small requirements.
The main advantage to an FHA loan in Spring Hill FL, is if you can fall within their requirements, your credit history or income level, will not hold you back from getting a home loan. If you are getting turned down from other lenders because of a high debt to income ratio or because your credit is bad. You may want to consider applying for an FHA loan, where those requirements are either non-existant or much more flexible.
If the idea of down payment is holding you back, consider also, that FHA loans allow the use of a non-profit organization as a source for the down payment, which opens up the option of using down payment assistance programs like Neighborhood Gold.
Discussions of mortgages often focus on interest rates, but there is a much more basic decision to make. Should you go with a 30 year mortgage term or a 15 year mortgage term?
30 Year vs. 15 Year Mortgages
Any discussion of mortgages tends to turn on two points. How can you qualify for the most money with the lowest payment? How can you get the lowest interest rate for the mortgage? While these are two important issues, there is an addition one that people fail to consider, resulting in significant wasted money.
The term of a mortgage is extremely critical for a couple of reason. First, it sets the length of the obligation you are undertaking. Second, it defines the amount of interest you are going to pay over the life of the loan. These are huge issues when it comes to building equity.
The longer the loan, the more total interest you are going to pay. The trade off, of course, is you are going to have smaller monthly payments the farther you stretch out the obligation. While this may sound like a good goal when you first get the mortgage, it can backfire on you in the long run.
Most people focus on interest rates as a way to save money on mortgages. This is a valid approach, but playing with the length of the loan is a better way to save money. If you can cut the payments in half by going with a shorter loan, you can save huge amounts on the total interest repaid to a lender.
The decision on the term of the loan is relatively simple, but entirely dependent upon your personal situation. There is no absolutely correct choice. First, you need to determine if you can comfortably afford the higher payments that come with a shorter term loan. In general, a 15 year mortgage will have payments 20 to 25 percent higher than a 30 year loan. Of course, you will pay the loan off faster, to wit, be building equity in the home quicker.
The modern mortgage industry has a variety of different term length products. When applying for a loan, take the time to evaluate the different terms to see if you can find a loan that is perfect for your situation.