How likely is it that a bank would consolidate other debts with a new mortgage loan?
As a loan officer there are a few things you can do. Off the top of my head you can buy the house and after two years if the home holds it value you can refi and roll whatever other debts you want into your mortgage.
How does your employment history affect whether you get approved for a mortgage loan?
For strict underwriting purposes, VA and FHA loans need one month worth of stubs, conventional auditers need 60 days (2 months).
As far as income risk, the longer is better but having no gaps in employment and going for a job that is making more is ok. Depending on how you decide to purchase your home - you can ask your lender about your situation prior to filling out paperwork.
Good luck on your home purchase!
If you get a mortgage loan through bank and lose job. What options do you have to get out of that contract?
While you can't really "get out of" a mortgage, there are things you can do. There's a new program for people who have lost their jobs and are getting unemployment benefits, that applies to some kinds of mortgages. The bank can reduce your payments for a few months while you are looking for another job. You may also be eligible for other "foreclosure prevention" programs, depending on what kind of loan you have.
The first thing you should do is call your bank and tell them you lost your job. The bank will send you a form to apply for whatever assistance they offer. Get your financial records in order - usually they will want to see 2 years of tax returns, proof that you are on unemployment, and at least a couple of months of bank statements. Keep a copy of everything you send to the bank, and send it by a method that will give you a return receipt.
Whatever you do, don't just give up and walk away from your home without finding out what your rights are.
Is being an F&I guy at an auto dealership similar to what a mortgage loan officer does?
Auto finance is what I do for a living and you will be a natural.
The biggest part of doing sub-prime auto finance is being able to read credit, know your lenders guidelines and be able to read a credit application.
This way you will know by looking at the three which lender buys the deal and how to structure the deal to get the best rate, largest carry and least amount of stipulations.
A huge part of knowing your lender guidelines is knowing when you can get around proof of income. Since every lender has guidelines about debt to income and total amount of income they will allow for a monthly payment, this is critical if you have someone who is trying to buy a car that they really don't budget for.
Another big part is landing the customer on the right car. You want vehicles that you own back of N.A.D.A. wholesale so you can maximize the carry on the front of the loan, some lenders will advance as much as 145%.
A lot of things I really do not want to go into in a public forum, fell free to contact me direct and we can talk further.
When your lender finds out you have our audit lending violations, they are often willing to work with you to lower your mortgage payment..Many homeowners who were approved and financed through subprime ARMs (Adjustable Rate Mortgages) and even prime loans fell victim to predatory or unfair lending practices, or were not given full disclosure regarding their mortgage loan...It saves home by successful modification..
What is a typical day like for a mortgage loan officer?
I love it.
If you sit around and wait for business, you will not be very succesful, however, if you get out there and pound the pavement and get in good with real estate agents you will be just fine. Best of luck to you.
How should i go about applying for a mortgage loan?
1) A mortgage is like a car loan, you need to shop around to get the best interest rate, points, whatever possible.
2) I learned all that I know through "Home Buying for Dummies" educate yourself as much as possible before buying a loan because you don't want to get stuck with a bad deal, a bad deal can equal out $20, $30 thousand dollars more then a good deal could.....
3) Good Luck and congrats on the possible new home!
Does a bank have to agree to a mortgage loan modification or is it voluntary?
As I understnd it, the bank does not have to agree to a loan modification, however In my opinion the people who work for the bank are foolish not to agree to a loan modification particularly where it is important to avoid a foreclosure.
Right now property prices are artificially depressed because of all of the foreclosed properties.
Any property taken back in foreclosure and sold on the open market results in a huge loss for the bank and devastaes the family that loses their home.
It makes more sense to modify the loan so that you can make the payments and keep you in your home.
When the economy improves, your income will improve, the market value of your property will go back up and you will be able to catch up on your mortgage payments and the bank will avoid the loss that they would otherwise suffer if they foreclose on your home.
Any US bank would make a mortgage loan to a borrower with income from outside the US?
Most mortgage banks will consider foreign income as long as it is well-documented. They will require the figures be converted to US dollars for underwriting purposes using current exchange rates. The property would have to be located in the United States. Also, expect the bank to make you jump through a hoop or two to make them comfortable with your loan. Mortgage banks are more suspect of unusual or uncommon circumstances than ever before.
How much can a bank charge for late fees on a mortgage loan?
OK this is a complicated situation. I think that you need to go into the bank that holds your mortgage and get someone to sit down with you and figure this out. Do not leave until this is sorted out in a way that lets you catch up on all these late fees. I have no idea if this is legal or not, but that really doesn't matter at this point. Unless you want to take them to court, go in and get someone to figure this out with you. Usually it is easier to do this in person than over the phone. Call ahead to the bank and find out exactly who you need to speak with to get this fixed.
What are the key factors in obtaining a home mortgage loan?
Other Factors: With some lenders they require that your appraisal not be a significant amount less that your loan, because if something were to happen and your home went into foreclosure, they want to be sure they can sell the house and get what you owe them back. Credit Scores, the amount of debt that you have, ie credit cards, student loans, etc., they will require that you pay some of that off so that they will be your primary lender. If you are purchasing, lenders usuallly require a termite inspection, home owners insurance and if you have prior mortgages, they will want those paid off as well. Usually not a whole lot is paid upfront except maybe your appraisal. Hope this helps and if you live is SC or GA request that McLeod and Dowling be your closing agent!! As a thank you to me for answering your question!!! :)
Any US bank would make a mortgage loan to a borrower whose income is from outside the US?
Vienna? As in Austria? You won't find any US based bank that will lend on residential real estate outside of the US.
If the Vienna is some city or town in the US then it may be possible to get a loan in the US though you may have difficulty in proving your income if it's from overseas.
Can I include the expenses to repair the house into my mortgage loan?
there are rennovation loans out there but it might make more sense to do an equity line that you can draw on only when you need to pay the contractors, etc. it depends on how much cash you have to put down, etc. Get a good mortgage person and they'll work it out with you.
I really dont know, but it sounds to me like it shouldnt if you lived in the house for 2 of the last 5 years on like the first $500,000 of profit.
and if it is taxable, im sure only a fraction would be taxed from each months draw. the portion that is considered profit would be taxed, not your basis.
this is what sound the most reasonable to me
call the irs.gov people
Where can I find out how to create my own Mortgage Loan Processing business?
Do you have a legal bacground...
I just think they will want someone who knows all the laws, to protect themselves.
the company I work for services loans, and the companies would not hire our company if it were not a law firm...
What interest rate can I expect on a mortgage loan with my credit scores?
Im not sure you can get 100% with your mid score. Now adays the banks are way tougher than they were a couple of years ago, If they do the loan you're probably looking at an 80-20 "2 loans 1 for 80% and 1 for 20%. The 80% one probably around 9%-10% and the 20% one at around 13%.
How do I build a successful career as a good mortgage loan officer in a down housing market?
If I was a loan officer, which Im not, I certainly would start my practice in the field that currently needs more experts in. In my opinion I would seek to start in the field of loss mitigation on existing loans preventing foreclosures and if I did a great job on those they would come back for refinance when things settle down. Here is information links on how to understand Loss mitigation
Preventing, Detecting and reporting mortgage loan fraud
Free Foreclosure assistance – Homeownership Preservation Foundation
Fannie Mae Loss Mitigation policies on Foreclosures
FHA Definition of terms used in Loss Mitigation on Foreclosures
Government article and information on Foreclosures
HUD: Servicing and Loss Mitigation on Foreclosures
HUD: Approved House Counseling Agencies includes foreclosure issues, by state
HUD: Article on Foreclosure Issues
Best of luck on your new career
What happens if a broker cannot sell your new mortgage loan because of the current state of the loan industry
Just to clarify with the confusion I see in some of the answers...
Brokers can fund their own loans and then sell the loans.
For those who don't understand this, run a search on "mortgage table funding" , "correspondant mortgage lending" and "mortgage broker warehouse line."
Some brokers have taken on the name "Mortgage Banker" if they sell loans funded from their warehouse line. Some have not. Soon, "Mortgage Banker" will be completely accepted.
It sounds like, as someone else answered, the Broker funded the loan on their warehouse line and the investor---who made a commitment to immediately buy the loan---went out of business.
This is in no way the Broker's fault and you should do all you can to try and help the Broker get this loan off his warehouse line.
You could run into trouble, but more of an "inconvenience trouble." I won't explain all the pitfalls of what I have seen in the industry here. I will just say you should, if you can, try and get this loan off the warehouse line as soon as you can by refinancing. You will probably save some money by doing so anyway.
If a person has a mortgage loan when is the best time to pay extra on the mortgage?
the beginning of the 12month period....if your 1st payment was june....then you need to pay in may over every year.
if you pay earlier...then you can cut more time off the term.
you can also do biweekly payments
How do I write a letter to a mortgage loan company explaining bad credit and late payments?
I don't know if it will help to give them reasons you didn't always pay. If you think it will help explain that you couldn't get your mail out due to being in a war. If you didn't have a support system at home like parents that could handle your accounts while you were deployed explain why.
You may have to wait to buy a home until you have good credit and are out of debt.
If someone defaults on their mortgage loan, what happens to the second mortgage owed?
When the borrower defaults, the first mortgage holder forecloses and sells the property. If they do not sell it for enough to pay off the first mortgage, then the second mortgage gets nothing. Depending on state law, the second mortgage holder may have the right to sue the borrower for whatever part of the $75,000 is not paid. So the borrower could be forced into bankruptcy.
What day of the month is interest applied to a mortgage loan?
If you have a typical mortgage loan, interest accrues daily. It is not added all at one time, the balance actually would be higher from one day to the next....and then, when you pay your monthly payment, the amount of interest that has accrued since your last payment is applied to the balance and the remaining funds are applied to principle and possibly to your escrow account (monies held to pay taxes and home owners insurance). Payments on mortgage loans are usually due on the first of each month as an industry standard - with late fees added if the payment is not made on time. Your Note will explain the exact terms of your specific loan - hope this helps with a basic understanding.
Why is home mortgage loan considered a tax benefit ?
You're partially wrong.
If you pay $15,000 a year in interest and property taxes AND you are in the 15% tax bracket, you get to reduce that $15k from your income. This means you will pay $2,250 less in federal income taxes. So in other words, you are paying $15k to save $2k. It's not good business sense, but it's better than not saving anything...but that's not the entire story...it gets worse.
You only get to deduct the $15k IF AND ONLY IF you itemize your deductions (instead of taking the standard deduction). If you are married, your standard deduction is $11,400 ($5,700 if you are single).
Since you are paying $15k in interest/taxes, you get to deduct an extra $3,600 than you otherwise would have been entitled to anyway. Therefore, your net tax benefit really isn't $2,250. It's only $540 (15% of $3,600).
But wait...it gets worse...
You are only paying $15k in interest/property taxes the FIRST YEAR of the mortgage. Keep in mind that part of your mortgage payment goes to principle. While your payment each year will be the same, the amount going towards principle and the amount going towards interest will change. Eventually, that $15k payment each year will only be a few thousand worth of interest...at which point there is ZERO tax benefit.
What should be the ratio of income to mortgage loan amount to make sure I am approved?
Typically lenders want to see your mortgage payment no more than 28% of gross income and total debt service of less than 35% of gross income. Generally a lender will look at a 5-unit building as an investment, not a home, even if you are living there. This will tend to tighten the lending criteria and raise the interest rates a bit.
Self-employment income generally isn't considered until you can prove 2 or more years of regular income from the business.
Is it better to have one mortgage loan or a first and a second mortgage loan?
One mortgage is advantageous because you get a lower rate. Most second mortgages actually violated the terms of the first mortgage. However, people were asleep at the switch when these loans were taken out.
In order to re-fi, you need equity in your home. Rates are around 4.5% now. One mortgage is never a disadvantage, unless you don't qualify.
What are the benefits if I resort to a mortgage loan modification company?
The benefits of hiring a loan modification company is basically saving yourself alot of time from research and actually doing the the loan modification process. Its important to understand that their is nothing a loan modification service can do, that you cant do yourself. If you have the extra money and choose to hire a service, then great. The only real benefits is the time saving and they have knowledge about the industry. It simply is a service. Such as a housekeeper. You can clean your house yourself but its much easier to hire someone else to do it for you... (granted they have experience and may do a better job than you can, but its pretty marginal once you know how to do it)If you do decide to choose a service make sure you hire a legitamate company. In my experience I have seen WAY to many homeowners bieng ripped off and losing thier home becuase of some scammy loan modification company. If you choose a good company they can do great things for you. If you choose to do it yourself just keep in mind that the loan modification proccess requires alot of time and patience. You can download a FREE Do It Yourself Loan Modification Kit from the website I have listed in my resource box below. Check it out if you want to learn a little bit more about doing a loan modification yourself before you decide to hire a company. Hope this helps..and good luck to you!
How does dwelling coverage amount and mortgage loan amount work together?
The amount your home is insured for has nothing to do with the mortgage amount. Home insurance is based on how much it would cost to rebuild that home from the ground up in the event of a total loss. When you purchased your home, you bought the structure and the land. However, the insurance company only bases the amount of insurance on the structure itself. You should not have to pay insurance on the cost of the lot since this will not burn. The other scenario is that the home purchase price is based on the market which as you can now see can fluctuate widely -- for example you can purchase a foreclosure in some areas for about 1/4 of what it would cost to rebuild the structure just because of what is going on in the marketplace. By the same token -- you purchased a home for $242,000 even though the cost to rebuild determined by your agent using a replacement cost analysis is $169,000. It would not be to your benefit to insure yourself for $242,000 as the insurance company will not give you one dime more than what it would cost to rebuild or $169,000.
If there is a total loss of the structure, your bank would work with the insurance company to rebuild so no you would not need to come up with the rest of the mortgage balance unless you decided not to rebuild and decided to walk away. At that point you would have to sell the lot and hope that what the insurance pays (which will be based on the depreciated value) and the proceeds from the sale would be enough to pay off the mortgage. Look at it this way, the agent gains nothing by selling you less insurance since he or she makes less commission so I do not think the agent is being dishonest in the amount of insurance being recommended.
I hope this information helps. Good Luck
What does underwriting mean for the mortgage loan?
Underwriting is the process where a person at the lender goes about matching up all the qualifying documents, like your W-2's, credit report, appraisal, bank statements, employment verification, etc. to the loan guidelines. Once they are sure that the initial info you supplied is true and fill it in with everything the lender needs to verify to be sure you can pay the loan back, they will fund your loan.
What is the deal with mortgage loan modification schemes?
Do it yourself. Most of the companies are scammers, take money and don't achieve anything you couldn't achieve yourself, and frequently achieve nothing at all. The companies collect up front money from the borrowers.
Call you lender and keep calling and asking about loan modification. Ask about how they are implementing Help for Homeowners. Persist.
Most loan modifications are only a reduction of interest rates or a change from ARM to Fixed rate loan.
Does a mortgage loan have to be a minimum amount when purchasing a house?
for some mortgage companies- yes, they do have minimums and will offer a better rate when borrowing the average amount currently around $200,000. Others will charge extra large origination (closing) fees to start up the loan since they will not be making as much money off it in the long run. Also the smaller banks especially will not be able to offer a loan of that amount. You might want to try country wide- i recommended them to a couple freinds borrowing around 20-50k and they had luck with getting a approval for a decent price as where they were not hanving luck with the local banks. g luck
When making a Mortgage Loan Prepayment, does it reduce the principle amount you have to pay each month?
here is one example on 150 k 30 yr fixed with a 6.5% rate
first i must say you should make an additional payment and mark on check "apply to principle"! this way you have proof and there is no question your intention!
ok 150k home making a 150 extra payment every month!
pays your home off in 21 years and a 9 months
Student loans not in repayment or in deferral included in a mortgage loan application as an expense?
Student loans that are deferred...need to be deferred for 3yrs in order to take it out of the expense ratio.
If not, I WOULD HIGHLY recommend that you find the original contract of the student loan. OTHERWISE, the underwriter will use his own calculations of what you will pay...which is USUALLY higher than you will normally pay.
How do I report a private mortgage loan to the credit bureaus?
They can use you as a reference if they need to get another mortgage. Usually the company will require cancelled checks or copies of money orders used to pay you. Receipts aren't allowed as much now due to fraud in producing them as proof. However, if your borrowers can locate most of the cancelled checks and you are just missing a couple of months, lenders might accept the receipts. Usually they want a 12 month history or more of current timely payments. It's tough to report to a credit bureau unless you meet their criteria, which can include being licensed in your state. However, it never hurts to ask the big three.
How do i find a job as a mortgage loan officer without any mortgage experience?
I really suggest looking around at different careers websites, such as monster.com, in addition to checking out our careers page (I’m an employee of Quicken Loans).
Don’t worry about your lack of experience. At many mortgage companies, including Quicken Loans, no lending experience is not a problem.
In addition to on-going training, all new mortgage bankers attend five weeks of industry-leading training. We’ve been hiring 200+ new mortgage bankers a month for the past few months and we consider candidates with various work backgrounds and experiences.
I’ve included a link to our mortgage banker careers page that has more information, but if you have any questions feel free to contact me through my profile.
One thing, we only hire for employment in Detroit, Cleveland, and Scottdale, Arizona.
How exactly do 'interest only' mortgage loans work? When do I pay on the principle of such a loan?
In an interest-only loan or mortgage the borrower only pays interest each month. This makes it cheaper than a conventional mortgage, in which part of each month's payment goes towards the principal and part goes towards interest. These loans have become popular because the monthly payments are lower, allowing borrowers to afford a larger home.
However, these loans can be dangerous, especially in a down housing market. The interest rates are generally fixed for the first 1, 3 or 5 years. After that, they convert to a conventional loan, with a higher monthly payment. Most borrowers take on these loans because they assume they will sell the home before the interest rate increases. In a down market, they may not be able to sell. If they cannot afford the increased payment, they may have to default on the loan, and foreclose on the home. So, when the rate starts to adjust, you would need to refinance again. And, either get a fixed or another interest only adjustable. And, yes, I do believe you mean ARM. Although, if you have extra money every so often, you can pay down the principal in extra payments.
What percentage does a mortgage loan officer make from the sell of a home?
Mortgage Loan officers do not make anything from the SALE of a home. They make a certain percentage of the amount of the mortgage loan on the PURCHASE of a house.
The percentage of commission varies from state to state and from lender to lender.
I can tell you from my own personal experience.
First off, modifying your mortgage is a very difficult thing to do. Forget what the media and all these other yahoos are saying about the government's modification act. Most banks are not willing to modify your mortgage without putting up a fight.
Why? Because it costs them money to do it. Most mortgages are sold off to someone else after you take out the loan, but the original bank still acts as the servicer. They receive a percentage from the buyer of your mortgage to handle the payments and record keeping.
When something complex as a loan modification is requested, any profits they would make disappear and as such they are reluctant to do it.
The media and the banks themselves don't tell you this of course.
First-expect to hire a lawyer or get a legal aid lawyer. Most banks will not take you seriously unless you have a legal mouthpiece going to bat for you. Having a lawyer shows you mean business and just are not some schlub looking for a handout.
If you try to do it yourself, expect to be jerked around for months only to be told it can't be done and by the way we're starting foreclosure proceedings, which will only make the modification even more difficult.
The bank will not talk to you unless you are delinquent. And this is where time is of the essence-if you're very late with your payments and they have'nt started legal proceedings it makes the process much easier. Once legal proceedings start, then it becomes difficult if not impossible to complete the modification because now the courts will be involved.
Second-you will be expected to make your new payments ON TIME if you do receive the modification. The bank will not care how you accomplish this. You will be told that the first 3 payments or such MUST BE ON TIME OR THE AGREEMENT IS NULL AND VOID.
Keep in mind whatever agreement you agree to will only stall the inevitable. Eventually over time your payments will return slowly back to where they originally were. The original terms and payments will not go away. ALL A MODIFICATION DOES IS LOWER YOUR PAYMENT FOR A PERIOD OF TIME UNTIL YOU CAN GET BACK ON YOUR FEET.
Third-If you feel you can't keep up with the payments at any time now or in the future, consider selling the home while you can or give it back to the bank. It may seem difficult but it's a far better option than having it being taken away from you. Also note that if you file for chapter 7 bankruptcy, don't sign a reaffirmation of your loan. That way if you need to walk away you won't be held liable for whatever is still owed.
Fourth-I can't empathize this enough: NEVER, EVER, LET ANYONE TALK YOU INTO BUYING YOUR TITLE OR ASKING FOR MONEY TO REARRANGE YOUR LOAN. IT WILL BE A SCAM I ASSURE YOU AND YOU WILL STILL BE LEFT HOLDING THE BAG.
I hope this helps you and don't believe Obama and his socialist bullshit. What I told you is the reality and what the government says is fantasy.
Simply put the loan officer will get paid either three ways:
1. You pay him origination points
2. The lender will pay him
3. A combination of 1 and 2
For anyone to come here and tell you that only one or two ways is the right way or how much of % should be paid is completely wrong.
Each state is different on how much on an average a borrower will pay on origination points.
In order for you to find out how the loan officer is chargin your, look at the Good Faith Estimate.
If you are paying for origination points up front, you may be getting a better rate than having the lender pay the loan officer for his commission. Although you could be getting charge at both ends.
Look carefully at the Good Faith Estimate.
Yes it is. In fact, it is common these days. It will all depend on what type of loan you are going for, and what type of collections you have. If you owe 200 bucks to a phone company from a year or two ago, it isn't as big of a deal to the lenders as owing 5,000 in back child support.... they do whatever makes sense...
Comment back on what type, how old, and total number of collection accounts, as well as a total dollar amount and I will tell you how your chances look...
If you are both going to be on the loan, then both incomes will count. Critereia for a mortgage is dependent on the following:
* Credit Score - there are 3 credit bureaus and this thing called a FICO (Fair Issac) score. The closer your score is to 850 the easier the loan is to get and the better rate (lower interest) you will be offered.
* Debt to income ratio. If you earn $1,000 a month and have $750 per month in bills to pay, it will be tougher. Banks/mortgage companies like debt to income to be less than 50%, and would prefer 30% area.
* Don't be getting new loans and don't apply for new credit until after you have purchased your new home. These "inquiries" will bring down your credit score.
Look up your credit online now. You can get it done very inexpensively and know where you stand.
Hope that help