Tag Archives: real estate loans

Homebuyers Reduce your Stress and Make a More Solid Offer to the Seller with a TBD Approval!

First to clarify TBD – To Be Determined; meaning the property has yet to be found or under contract.

Many buyers think they need to find a house before getting “Approved” for a mortgage.  That is NOT True!  In reality the majority of the underwriting process can be done before finding your new home with a TBD file.

Buying a home can be stressful from negotiating the sales price of the home to the loan and underwriting process.

The solution to reducing the stress:  a TBD Approval!  There is a big difference between getting “Pre-Approved” from a lender and having an “Approval”.  And it will carry more weight with the seller and seller’s agent when making an offer.

TBD Process: signing disclosures, providing supporting docs i.e. income, assets etc.  The file is then submitted to the lender.  Your file will be completely underwritten by an underwriter and fully approved.  Then you will go out and find your new home.  J

When you find the home you want you will then negotiate with the seller on a price which you both agree on.  In the negotiation process you will provide the seller with an “Approval Letter” which carries more weight than a “pre-approval” letter since the underwriter has already seen, analyzed and accepted your credit report, income and assets.

Once you have a property under contract the only thing that the underwriter will require is specific information on the property: appraisal, title, homeowners insurance, inspections etc.

TBD’s are a HUGE benefit to the buyer, seller, Real Estate Agents.

#1.  Buyers have more confidence and less stress knowing that the underwriter has viewed, confirmed and approved their financial picture.

#2.  Sellers have less fallout when dealing with TBD approvals and TBD buyers are held in higher esteem than buyers who have only been “Pre-Approved”.

#3.  The benefit to Buyer, Seller and Real Estate Agents knows that the process will be smoother and take less time to close the sale.  Time needed to close will be reduced by 2 -3 weeks!

How do you get TBD approved and enjoy these benefits? Contact Me at:  (816) 728-1384 or Cindy@CindySeely.com

I can provide TBD’s on Conventional, VA, FHA and USDA Loan Products.  Hot Happy Couple

 

If you have any questions please don’t hesitate to ask and I will answer.

Blessings,

Cindy Seely

NMLS # 245378, Mo 10-1649-MLO, Ks 0009720

What Credit Score Do You Need to Get a Mortgage?

Credit Score Mag GlassDo you know the answer to this question?  If your answer is “No” realize you are not alone.

If you are thinking of purchasing a new home or refinancing your existing mortgage it is Tremendously important to know what the minimum credit score requirements for mortgages.

If your credit score is to low you probably will not get approved for a mortgage loan. Your credit score will not only have an effect on being approved but also on what interest rate you will pay.  The Higher your credit score the lower your interest rate will be.

Minimum Credit Score Requirement for Mortgage Loans:

FHA : Minimum credit score “typically” is 640 with most lenders.  There are a few lenders out there that say they will go down to 580 but I have yet see or hear of one closing.

VA:  Minimum Credit score “typically” is 640.

USDA:   Minimum Credit score “typically” is 640.

Conventional:   Minimum Credit score is 680.

Mortgage lenders go off of your “Mid Score” which is the middle of 3 credit scores; example if your credit scores are 646, 687 & 669 the lender will use 669. If you by chance only have 2 credit scores they will go off the lower of the 2 scores.

I would advise you to shoot for a credit score of 740 or above that should be your goal.  The higher your credit score the less the risk the lender assigns to your mortgage and the better your interest rate.

The banks / lenders use your credit score to assign a “risk” to you mortgage.  When lenders analyze / underwrite mortgages your credit score is a major factor in loan approval.  Your credit score not only impacts the interest rate you pay but also the maximum loan to value for your loan.

With the current changes in lending it is very likely that lender criteria will require higher credit scores in the future.  So be prepared and work on increasing your credit score.

I would suggest checking into your credit score several months in advance of wanting to buy your new home.  A web site that I recommend is creditkarma.com it is a free site and they do not ask for credit cards.  They also give you FREE credit scores!

I would suggest checking your credit every 4 – 6 months to make sure it is accurate.  If you have a lender/bank pull your credit then your score will take a “hit” of 5 – 7 points to your credit scores.  But going into CreditKarma.com and pulling your credit report will not reduce your credit score.

If you have any questions on this or if you are ready to see about a new mortgage give me a call!

Blessings,

Cindy Seely

NMLS # 245378, Mo 10-1649-MLO, Ks 0009720

Department of Justice Stands up for the Veterans!

Recently I have heard several stories where “Active” military personal have had their homes foreclosed on and it irritates me greatly!  I mean think of the stress levels that both spouses experience during the foreclosure process; not to mention the family having to move during a time that the husband / wife and dad is fighting overseas.  That is heartbreaking.

First off how can the bank foreclose on someone who is actively serving this country?  Second off in most situations foreclosing on an active military person is breaking the Service Members Civil Relief Act (SCRA) formally Soldiers & Sailors Civil Relief Act (SSCRA).  So why have the “Banks” been foreclosing on the one’s serving this country?  They must have been ignorant to the laws! Not to mention sitting there and clicking their computer screen to begin the foreclosure process while the veteran is putting his life on the line to protect this country.

Great news today!

The Department of Justice has made a stand for those military people! Thomas Perez, Assistant Attorney General for the Civil Rights Division said “The men and women serving our nation should not have to worry about a bank foreclosing on their home while they bravely serve our country,” BAC Home Servicing will pay a total of $20,000,000 as compensation for those military people who were illegally foreclosed on.

Military personnel whose homes were improperly foreclosed upon will each receive at least $116,875 from BAC Home Loans Servicing, a subsidiary of Bank of America, for the bank’s alleged violation of the (SCRA).   For details o the SCRA law http://www.military.com/benefits/content/military-legal-matters/scra/servicemembers-civil-relief-act-overview.html

I hope we all continue to stand up and support those serving this country.

Blessings,

Cindy Seely

P.S. yes I do VA loans

Senior Loan Analyst

(816) 728-1384

NMLS # 245378, Mo No. 10-1649-MLO, Ks No. 0009720
360 Mortgage Inc., 28 Westwoods Drive, Liberty, Mo 64068
NMLS # 80777

Ownership Transfer of Your Mortgage Loan

Happy HouseVery often today your mortgage loan is sold / “Transfer of Loan Ownership”.  I am going to explain a few things that it you need to be aware of.

Your home is one of the most expensive items you will buy in your lifetime that is why it is important to understand several aspects of your loan even after it closes.  The aspect I am going to talk about today has to do with the sale of your note (mortgage).

First off if or when your note is sold your rate and term cannot change!  That part of the note is set in stone and recorded in your local county records.  The lender / note holder can sell the note or have a 3rd party do the servicing (receiving payments, paying escrows etc.) of the note.  If the note is sold the old note holder has to disclose 15 days prior to selling the note and the new note owner has 15 days after purchasing the note to disclose.  The letter of the new note owner will include: name and address for the new note owner and the effective date of the note sale.  These disclosures will be sent to you in snail mail.

At my loan closings I always bring this up and tell my borrowers that if their loan is sold they will receive a “Hello” and “Good-Bye” letter.  The “Hello” letter comes from the new note holder notifying the homeowner that their loan has been sold and where to send their monthly payments.  The “Good-Bye” letter from the old note holder will notify the homeowner that their note has been sold.  If you would by chance only receive one of the letters let’s say you receive a “Hello” letter but not a “Good-Bye” letter I would recommend that you contact your old lender to verify.  There has been some fraud going on in this area so it is best to have your backside covered.

Here are some additional suggestions that the FTC (Federal Trade Commission) makes to help protect yourself:

  • Read all notices from your mortgage company / mortgage servicer carefully!
  • If the servicer ask for proof of homeowners insurance, or tax records.  Send it promptly and keep a record, I personally would send it registered mail to make sure you are fully covered.
  • Maintain records of all payments (cancelled checks, billing statements and bank account statements)
  • Thoroughly read all your mail from your lender.
  • If you have a problem and are not able to find a clear resolution with your lender then either contact the FTC or ask your lender for their Ombudsman contact information.

For more information go to Federal Trade Commission or download the FTC MORTGAGE SERVICING

 

Respectfully,

Cindy Seely 

Senior Loan Analyst 

(816) 728-1384

NMLS # 245378, Mo No. 10-1649-MLO, Ks No. 0009720
360 Mortgage Inc., 28 Westwoods Drive, Liberty, Mo 64068
NMLS # 80777

HomePath Mortgage

 

 

If you are interested in buying real estate as either a home or investment;  have you heard about the HomePath Mortgage Program?

What are the benefits of HomePath Mortgage; how is it different from other mortgages programs like FHA, VA, USDA?

  • No appraisal required
  •  No Mortgage Insurance (upfront or monthly)
  • Seller paid closing cost up to 6% of the sales price
  • Low down payment
    • Owner Occupied & Second Homes – 97% Loan to Value
    • Investors – 90% Loan to Value

The largest benefit of the HomePath is No monthly mortgage insurance or Up Front Funding fees.

Up front funding fees for USDA and VA is 2% of the loan amount (example on a $100,000 loan amount the up front funding fee would be $2,000).

Monthly mortgage insurance on a FHA loan is 1.1%/12 (example on the same $100,000 loan amount the monthly mortgage insurance on an FHA would be $91.67.  That would come out to “typically” paying $5,500 in 5 years.

Check out the properties at www.homepath.com .  As of today there are 1,500 in Missouri and 397 in Kansas listed on the web site.

Properties offered through HomePath include single family homes, townhouses and condominiums.  The properties are owned by Fannie Mae and are sold “As Is” and buyers should obtain a home inspection from a licensed inspector.  If you need a good one give me a call I know several. J

Does the HomePath interest you?

If you have any questions or are looking to buy contact me (816) 728-1384.

Blessings,

Cindy Seely

Senior Loan Analyst

(816) 728-1384

NMLS # 245378, Mo No. 10-1649-MLO, Ks No. 0009720
360 Mortgage Inc., 28 Westwoods Drive, Liberty, Mo 64068
NMLS # 80777

 

 

 

New Mortgage Blog

Now that my mortgage site is up and running (kind of) I am going to start blogging with mortgage updates and my thoughts on the mortgage industry!

Yesterday “Origination News” came out with a news updated; The “head count” for “licensed loan originators” 

According to a new head count, banks and their mortgage affiliates employ 350,000 registered LOs. Nonbanks—also known as “state-licensed companies”—have registered 109,000. 

For those of you not in the wonderful mortgage industry I will explain.  The S.A.F.E. Act requires that mortgage brokers who are “Non-Bank” employees must be registered and licensed (Nationally in addition to any state we want to originate loans in).

We had to go through some pretty tough testing;  the pass rate is typically 40% or less. State and Federal Government also run background and credit checks on us and then we have to be approved and “licensed”.

Bank loan officers do not have to take any national or state tests, their employer (the bank) runs a background check and registers them on the national site.

I am so happy to say that I have passed the National Test, Missouri and Kansas test!  So I am 1 in 109,000.

When you talk with loan officers ask them for their NMLS # and then check them out on NMLS  here is my license number 245378.

I will be putting more blogs up very soon So be sure and “Stay Tuned”

Thanks,

Cindy Seely

Senior Loan Analyst

(816) 728-1384

NMLS # 245378, Mo No. 10-1649-MLO, Ks No. 0009720
360 Mortgage Inc., 28 Westwoods Drive, Liberty, Mo 64068
NMLS # 80777

P.S. Hey if you know of someone who is wanting to take advantage of the historically low rates with a refinance or purchase have them contact me…