2017 County Loan Limits 2017 County Loan Limits are up! Over the past couple of years our loan limits were set as follows: $417,000 for a conforming loans, and $580,750 for what is typically called a High Balance Loan (set by the County Median Home Average). Well it was just announced that in 2017 the new loan limits will be as follows: $424.100 for conforming loans, and $612,900 for the County (High Balance) limit. That means if you had a pre-approval, and were being capped by the Max Conforming Loan Limit, you may now be able to borrow a little more and bump up your purchase price! If that sounds like that might be you, and you want to take a second look at your pre approval, email me at Scott@GreenMenasGrow.Com. And for the most up to date rates and calculators, download my app at http://svanvugt.mortgagemapp.com
Week 2 – FHA Rates & MI As we move another week into the series comparing loan programs, we continue to explore the Pros and Cons of FHA. This week, in this video, i talk a little bit about the rates that are generally associated with FHA financing, as well as the Mortgage Insurance. Mortgage insurance is a really hot topic in conventional financing, but generally stressed a little less in FHA financing, although it carries a more severe up front financial obligation and MI (mortgage Insurance) for the life of the loan. For more info on FHA loans, or to ask any questions on this Video, email me at Scott@GreenMeansGrow.com For up to date rates, and mortgage calculators, you can download my Mortgage App for free at https://svanvugt.mortgagemapp.com/#
10 Week Loan Series – Introduction Join me over the next 10 weeks, where I’ll be discussing the difference between different home loan options such as conventional, FHA and VA. We’ll be looking at this through the lens of a buyer, and discuss things like different down payment options & loan qualifications. if you are a potential, buyer, and were wondering what loan makes the most sens for you, this 10 part series is just what you have been looking for. Of course, if you have any additional questions these videos didn’t answer, or would like to discuss in greater detail. Email me at Scott@GreenMenasGrow.com
The New Update You Need To Know About Your Hero Loan Hero Loans were a great idea when they came out. They still are. But like most things, they don’t always go according to plan. Recently I discovered the hard way that most lenders will not issue a first position lien on a property that has a hero loan. They were requiring it to be paid off before they would issue the loan. Well, Hero saw this problem and made one key adjustment that is could possibly change all of the a fore mentioned. For more info on what this is, email me at Scott@GreenMeansGrow.com
I came across some great information for prospective home buyers regarding the closing costs needed when buying a home. According to Pat Setter over at the Union Tribune, “Closing costs are an assortment of expenses incurred during the home-buying process. Some of these expenses, for which the buyer is responsible, are lender fees (the portion the lender is charging for services), title and escrow fees (amount these companies are charging for their services) as well as advance payments for items such as homeowner’s insurance and property taxes, known as impounds. Title insurance premiums are also covered. The biggest closing fee, the real estate commission, is the seller’s responsibility. “The most important thing consumers should know about the closing costs is that everyone calculates them at a different rate,” said Jaclyn Giaquinto, an escrow administrator at Lawyers Title. There is no flat fee or percentage of the home’s cost. These closing costs will not come as a surprise. Buyers get an estimate of costs early in the buying process. When applying for a mortgage, buyers will receive a Loan Estimate. That form, which has been in effect since Oct. 3, will not only include the amount of a loan and the monthly payments, it will also include the closing costs. It must be provided to the buyer within three days of a loan application. The new Loan Estimate form is part of
If you are a home buyer and are receiving help financially from a family member let me first say, you should consider yourself very lucky! I’d almost go so far as to recommend buying a place with a guest room at the very least, if not that “mother-in-law” apartment over the garage. What I’m getting at, is a little something call, Expectations. Before the process of the home search even begins, I advise you to have a really serious talk about who going to be the real decision maker. In my experience, parents are often very willing to gift their children funds to buy a home but then with that can come many desires of their own. Other times, rich “Uncle Joe,” gifts some money and never even sees the place that is purchased. While both scenarios are perfectly acceptable, what doesn’t work is the home buyer’ misinterpretation of what the money really means when it comes to making decisions. So, before accepting and money it’s best to have an honest conversation about the involvement of the gift giver. If they have the final say, it’s best to include them in the entire process. From looking at homes, to writing offers, to attending the home inspection. Not only will this save many hours for everyone, it will ensure there are no surprises that occur after a lot of time and
A Must Know If You’re a W2 Employee 2106 Expenses. You may not know them by this name, but you might have them if you’re a W2 employee. And if you’re a W2 employee with 2106 expenses, they may be having a serious impact on your qualifications for financing. That is, until now. 2106 expenses, also referred to as “Unreimbursed Employee Expenses” are write offs for things that are often required for a W2 employee to do their job, but is not covered by the employer. A couple examples of these are; Union Dues, Purchasing and Cleaning of Uniforms, Business Phones, Laptops, etc. Until just recently, these write offs were deducted from your income. And in a lot of cases, they ended up having a serious impact on your qualifications. Of course there are a couple caveats to this exception, so if you want the full story, e-mail me at Scott@GReenMeansGrow.com, and I’ll tell you everything you need to know about these write-offs and how they play into your finance qualifications
Did you know only 9% of home owners stay in their home or keep their loan for ten or more years? Did you also know 94% of home-loan applications are for 30-year fixed mortgages? With 30-year fixed mortgage rates are in the mid-to-high 3% range it’s hard to argue with anyone wanting to lock up a 3.5% mortgage for as long as possible but that also means the overwhelming majority of people are applying for 30-year fixed mortgages and won’t ever come close to keeping that loan for even the first 10 years. Now that we are seeing 30-year rates creep up above 4% there are two home loans you must consider that will keep your interest rate as low as possible. These two loans are the 7 & 10 year Adjustable Rate Mortgages, also known as ARMs. These loans are still 30 year terms and the rate is either fixed for the first 7 or 10 years. Many people think Adjustable Rate Mortgages are the reason for the banking crisis and subsequent mortgage meltdown that happened from 2007-2010. While there were truly some victims of bad loans what most people don’t realize is that most of those ARM loans adjusted down. I know people who are still in their ARM loans from 2006 who now have interest rates in the 2% range. Here is a current comparison of a
Last year at this time a client of mine who’s family was growing wanted to purchase a bigger home. This client was a business owner and like every dutiful business owner should do he wrote off every expense he could to limit his tax liability. The net result was that he successfully lowered the amount of taxes he paid but in the process disqualified himself for the loan he needed to purchase the next home. This is because we must use the bottom-line taxable income on the Schedule C every business owner files as a starting point for qualifying income. When I told him he wouldn’t qualify based upon his “usable” income he offered to re-file his taxes and write off less expenses to increase his qualifying income. Now on the surface there is nothing wrong with this. People file amended tax returns all the time. But this is done to recapture over-paid taxes or amend a mistake one a previous return. What he learned the hard way was that lenders will not allow amended returns when the intended purpose is to qualify for a home loan. In short, no strategic tax filing allowed. This meant he had to wait a year before qualifying for a loan. Now I don’t agree with this rule because banks will allow people to manipulate other areas of their income and/or taxes to
Recently someone had asked me what documents you need for financing other than taxes and paystubs? This might seem like an obvious question, but if you haven’t been in the market for a refi or a purchase recently, it might not be as obvious as you think. A few years ago stated income and stated asset programs were a very common thing. This meant a lot less documentation for the borrower. Now, with a change in the lending environment over the past few years, nothing is left up to chance and every asset and form of income is documented. So what does this mean, this means taxes, paystubs, retirement statements, bank statements and more. There are also a couple very important things to look out for if you are using retirement accounts, have solar panels (or looking to buy a property with solar panels) or if you have ever been divorced, that might affect your bottom line. For a complete list of what items you will need to set aside in order to obtain financing, for your specific situation, drop me a line. Scott@GreenMeansGrow.com 858.863.0260 ext
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