Financing and Credit

Financing is always so important when investing or even buying a property to live in. One thing you can do to speed up the process is to have all your paperwork in place when you are applying for a loan or a line of credit. One of the things that delays a loan closing is having to go back and forth with an underwriter to get needed papers in place. Here are some helpful tips to make sure that the "back and forth" with an underwriter is as minimal as possible.

When you apply for mortgage financing, you must provide the following documentation to the lender before your loan is granted:
• Name and address of landlord(s) for the past two years (if eligible).
• Proof of all income from the past 24 months (tax returns, pay stubs).
• Previous two years' W-2 forms.

Mortgage rates reach highest level in 2 years
By Les Christie
CNN Money
July 11, 2013

The 30-year mortgage rate rose to its highest level in nearly two years, according to mortgage financing company Freddie Mac.

Rates climbed 0.22 percentage points to 4.51% for a 30-year, fixed-rate loan this week, the highest it has been since July 2011. Meanwhile, the average rate for a 15-year loan hit 3.53%, up 0.14 percentage points.

Two weeks ago, a sharp spike in rates of more than half a percentage point was blamed on hints by chairman Ben Bernanke that the Fed would soon start tapering off its purchases of up to $85 billion a month in bonds and mortgage-backed securities, a stimulus program designed to keep borrowing costs low.

A lifelong goal and dream of many citizens is to achieve is homeownership. While many people own their own homes in today's society, this wasn't always the case. Historically, families either needed to build their own homes or rent a home from someone else. While both renting and buying have their own sets of financial advantages, renting does appear to have an edge when the economy is poor. There are tremendous financial benefits to renting as opposed to buying a house of your own. Here is a look at 10 reasons why renters have the better financial deal over homeowners.

No Maintenance Costs or Repair Bills

Having been in that industry for a few years and having my own mortgage company there remains some interesting points to consider when using one:

When shopping for a mortgage, many home buyers enlist the services of a mortgage broker to find them the best terms and rates. Since the real estate market crash in 2008, however, the business practices of brokers have come under scrutiny and the question of whether they are acting in the customers' best interests has been raised. Working with an experienced, competent mortgage broker can help you find the right mortgage, but there are both advantages and disadvantages that you should consider before committing to one.
Advantages
Saves You The Legwork

If you are putting in offers on homes that you plan to double close using a transactional funding company, do you write your offers as "cash" offers or as pre approved? Just want to make sure I do this correct.

As we enter another new phase in the financing world, I think it’s important to have as many options for funding your deals as possible. I would strongly suggest getting a Mortgage Broker on your power team.
Mortgage brokers have a number of advantages over your normal bank. They have access to a number of different lenders who each offer a number of lending options. The broker is able to shop the list of lenders and products, thus finding the one that will be the best for you and your current situation. If you have developed a good relationship with them , they will also be on alert for any new programs that could benefit you also.

I recently have come across several deals that would be ideal for a wrap mortgage. I understand the steps involved, however another investor mentioned to me that I should be able to get money out at closing.
I was so excited I forgot to ask how?
If the remaining mortgage is at $20K and I want to wrap it for $40K (the example that was used), where does the other $20K come from?

Thanks for the help.

Congratulations. You've just sold your home and are ready to purchase a new "castle". For the first time in your life, you may have enough money to pay CASH for a home. But should you? Does it make sound financial sense to do so?

Let's explore the pros and cons and help you weigh what you could stand to gain (and/or lose) if you purchase your new home for cash.

Lenders are becoming more willing to offer new loans to borrowers who don’t have any home equity after changes to the rules of the U.S. government’s Home Affordable Refinance Program.
President Barack Obama has made expanding the reach of HARP a centerpiece of his housing policy, most recently calling for Congress to pass a bill making the program more attractive to lenders in his Feb. 12 State of the Union address. Senate Democrats Barbara Boxer of California and Robert Menendez of New Jersey introduced a bill in February that would implement the president’s request.

Determine how much equity you have in your home. You can base your home's equity either on the sales price or on the appraisal value. Refer to the documents for your mortgage closing. Also look at your latest mortgage statement. Deduct the current mortgage loan balance from the value of your home to determine your home's equity.

Create a budget. Find the total amount of your net income and calculate your total monthly expenses. You can usually find these amounts in your checking account ledger. Get your average monthly expenses by adding your total expenses for the last year and dividing them by 12. Determine how much take-home pay you have over and above your regular expenses.

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