The new GFE In October of 2015, a new Good Faith Estimate (GFE) was introduced to make closing costs and loan terms easier to understand for borrowers. This new document, also referred to as the Loan Estimate, replaces the previously used GFE and Truth In Lending (TILA) statements. A Change in Rules for Closing Cost [...]
The days of “no-income check” mortgage applications are long gone. Now, when applying for a mortgage, you will need to include your income on the application itself, and provide documentation of a history of that income (usually two years). For a typical 9 – 5 job, this means copies of the previous two years’ W-2s, [...]
Home Loans - What Are Your Options? In this article we go over fixed rate and adjustable rate mortgages and what home loan options are available. Fixed Rate Mortgages Fixed rate mortgages offer the following term options as a general rule: 30 year 20 year 15 year 10 year For many, a fixed rate term [...]
Credit Scores – How Do They Apply To Mortgages? The web is full of articles about credit scores; getting them for free, improving them, what to do if you don’t have great credit. But there are some FAQs that are specifically related to applying for a mortgage. Three Different Credit Bureaus There are three different [...]
A mortgage prequalification is a formal document that indicates that a lender has reviewed preliminary information about your financial circumstances, and based on that information, has determined that you qualify for a specific amount of mortgage loan. Pre-qualifications usually expire after a short time (60 – 90 days), and are usually required by a realtor before [...]
Buying your first home? Receive a gift of cash to use as a down payment from family? A rich uncle, or a significant other who has less than stellar credit but wants to contribute his/her share of the purchase? There are multiple situations where someone might want to give a gift of cash towards the [...]
Ask this question and you’ll no doubt hear a resounding “NO!” from most mortgage professionals. In a way they’re right, but in reality, you can use borrowed money for your down payment with limitations. And any payments due on the loan will be included in your total debt ratio. This could impact the total amount [...]
Proof of funds for a mortgage can come from many sources. Whether a family gift, money you’ve borrowed, or money you’ve saved. Each has important considerations to be given, and each is looked at slightly differently by a lender. When applying for a mortgage it is important that you understand the way a lender will [...]
If you are buying a house and someone is planning on gifting you funds for your down payment you will need to give a letter to the bank explaining the who, what, where, and why of the gift funds. Below is a sample letter that you may use to share with your lender. Some banks [...]
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