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Showing posts from March, 2014

Homeowners Insurance Importance to Mortgage Pre-Approval, Application & Closing

Homeowners Insurance Importance to Mortgage Pre-Approval, Application & Closing

     After you've signed your Real Estate Contract and you've
agreed to purchase a home, there's still work for you to do as a Buyer and Borrower ...

     Typically a Real Estate Contract reads that Home Buyers must make Mortgage Application within 5 business days after signing the Contract.  During the Mortgage Application (and even before) I, as your Mortgage Originator, will advise you to begin shopping for your Homeowner's Insurance.  

     For the Pre-Approval, and even at the time of Mortgage Application, I'm using an ESTIMATED dollar amount for the cost of your Annual Insurance Premium.  

     Why?  Because I (and Underwriting) must know and use the actual annual premium to calculate your EXACT total housing monthly Mortgage Payment.  

Note:  No Underwriter will clear a file for Closing without knowing the exact cost for all components of the monthly Mortgage Payment.  So not havin…

"Because" ... The Mortgage Underwriter is Requesting it!

"Because" ...  The Mortgage Underwriter is Requesting it! 
     As parents, we often find ourselves trying to explain things or reason with our children.  And when we do, it's almost inevitable that we hear a "Why?" after each attempt.  I know each of my boys did this.  Sometimes relentlessly.  

      If you're like me, when this occurred you eventually reached a breaking point.  Thoroughly exhausted mentally and having no more explanations, you finally offered up the only answer left to you ... "Because!"

     I wrote a post entitled, "Creating a Paper Trail to DocumentFunds for Your Mortgage Closing".In that post I related just howimportant it is to create and prepare a trail of easily-understood and easily-followed documentation prior to and during a Mortgage Application.

     This "paper trail" really trips-up some of my Applicants.  Especially when that "trail" has to be marked and clarified a bit better.  When that h…

Creating a Paper Trail to Document Funds for Your Mortgage Closing

Creating a Paper Trail to Document Funds for Your Mortgage Closing

It used to be years ago, that couples ... husbands, wives, and even the kids ... kept their financial accounts together in one bank, one savings account, and typically just one checking account.  I know my parents and my wife's parents certainly did it that way.

But these days, multiple accounts in multiple institutions is the norm.  Each individual often maintains their own accounts: savings, investment, retirement, and credit.  

They maintain and pay their own personal accounts, plus they've divided the responsibility for payment of household bills.  The household may have multiple checking accounts too.

No, Americans no longer conduct finances as simply as they once did.  "Simple" doesn't come close to explaining the finances of my Borrowers seeking a Mortgage.  

Except for those that are young First-Time Home Buyers, Credit Reports typically trace pages of credit history.  Mortgage Applications sh…

The Beauty and Benefit of Organization to Mortgage Financing

The Beauty and Benefit of Organization  to Mortgage Financing

The word:  Organization ...

    The definition of Organization:The act or process of putting the different parts of something in a certain order so that they can be found or used easily

Some Synonyms for Organization: 
GroupingStructuringManagement PlanningMethodAssembly
During tax season, is the perfect time to talk of ... Organization.  Because if you're ever going to be organized during the year ... or have the organization of your finances and financial papers under control ... it's during this time.  In a way, it's almost mandatory in order to file taxes.  At least in some good measure.

For those thinking you may want to buy a home during the remaining portion of the year, pay special attention ...  NOW ... while you're organized and your finances and documentation are fresh in your mind ... is a great time to get a jump on your upcoming Mortgage financing.  

     Should you be in the preliminary planning sta…