The Downside of Down Payment Assistance

Potential home buyers often ask me if there is any down payment assistance available through the government.  It's a good question to ask.  Why not take advantage of free money if it's there, right?

The good news is - there IS down payment money available.  The Indiana Housing and Community Development Authority offers the Next Home down payment assistance program to people buying a primary home in Indiana.  This program is great for many reasons, including:

1. Full down payment given - It covers all of the money needed for the buyer's down payment.
2. Conventional or FHA - it can be used with both conventional and FHA financing.  
3. Not for first time buyers only - The program is not just for first time buyers.  Even if the buyer owns a home at the time of application, as long as it will be sold prior to purchasing the new one, they could qualify.
4. Flexible credit score requirement - to get the down payment help, the buyer's credit score does need to be higher than the minimum FHA requirement, but it's reasonable.  Currently, we require a 660 for Next Home down payment assistance.
5. No delay in buying - using the program doesn't slow down the home buying process.  We still close in the typical 30-45 days.  
6. No higher property qualifications - there is no higher property standard set for the house being purchased and no additional inspections needed.
7. Higher income limits - There is a maximum household income limit for this program so, if you make too much money, you don't qualify.  The limit is generous though.  For a 1-2 person household, the current limit is St. Joseph county is $67,000.  If there are 3 or more people in the household, it's $77,050 (link to all limits for the state here - County Income Limits).

So, this all sounds good, right?  Why wouldn't someone who qualifies take advantage of this?

This IS good, really, but there are downsides to using this program.  The main three are:

Upfront Money Still Needed

Even if you are using the Next Home down payment assistance, you still need money upfront when buying a home.  You need your earnest money when your offer is accepted (typically $500-$1,000).  Within a week after the offer is accepted, you'll need to enroll in the Next Home program (currently $100) and - if you're a first time home buyer - you'll need to take an online home buyer education class (currently $75). The home inspector will also typically want to be paid upfront, if you have one, but you can normally negotiate for this to be paid at closing, potentially from the seller's assistance.

Higher Interest Rate

The interest rate for the Next Home mortgage is typically higher than the interest rate you would get if you paid  the down payment yourself.  The difference varies with rate fluctuations in the market, but on average the Next Home rate is 0.25%-0.50% higher than the normal market interest rate.

But the Big One Is....

These are all minor inconvenience with using this program.  No one wants to gather more paperwork, pay a couple hundred to IHCDA or have a higher interest rate, but to get the free money, it's probably worth it.

There is one piece to this program that may make it NOT worth it, though, if you have another option and that is the higher closing costs.

Let's back up a bit - when you are buying a house, you need money for the down payment, money for closing costs (title work fees, lender fees, appraisal costs, etc.) and money for prepaid items (first year of home insurance, prepaid interest, escrow build-up).  The Next Home program pays for your down payment but it does NOT pay for the closing costs or prepaid items.

So who does? If you have the money and are willing, you do.  If you don't have the money, you ask the seller to pay them on your behalf.  This is allowed as long as the total amount you are asking for doesn't exceed 6% of the price for FHA loans or 3% of the price for conventional loans.

Here's the problem - the closing costs are higher for Next Home loans.  How much higher depends on the price of the home but, in general, if you are asking the seller to pay for those for you, you are going to have to ask the seller to pay for 5-6% of the price worth of fees on your behalf.

This can create problems in multiple ways:

1. Seller offended - It's fairly common for a buyer to ask for 3-4% from the seller from costs, but when you ask for 6%, the seller may get offended.  They may not be open to your offer because they think you are asking for too much.
2. Higher price needed - If the seller's are OK with paying the 6%, they're probably going to expect you to pay a higher price on the home to help offset the higher amount they're giving.
3. Challenge in re-negotiating - If you are paying a higher price for the home because of higher seller concessions, their is an increased risk that the appraisal will come in low.  This is important to know going in because, by the time the appraisal is back, you've spent money on appraisals/inspections/enrollment fees that you can't get back.  If the appraisal comes back low, the seller may be unwilling to drop the price without also reducing how much of your costs they are covering.  This is also a risk with repair negotiations.  If he is giving 6% towards your costs, the seller may be unwilling to give more to fix things that come up on your inspection.

Bottom Line

It's currently a seller's market in northern Indiana.  There are multiple offers happening on good homes so buyers need to go in with the strongest offer they can.  If you are a buyer and you need the down payment help given by Next Home, by all means use it.  It is a good program and will get you into a home now versus having you wait until you save up the down payment.

If you have the ability to cover the down payment yourself, though, consider doing so.  You'll have lower upfront costs, a lower interest rate, will likely pay less for the home and could have a better chance of your offer being accepted because you are asking for lower contributions from the seller.

Bottom line, 'free money' isn't always free, and you don't want to miss out on the home you love because you're trying to get some.  Weigh the pros and cons, talk to you mortgage lender and Realtor and then decide if using Next Home for your purchase is the right step for you.


To learn more about Next Home down payment assistance or any other aspects of home financing, contact Lori Hiscock at lori.hiscock@ruoff.com.  

Lori Hiscock is a Sr. Loan Officer at Ruoff Home Mortgage‘s South Bend office.  One of Michiana’s top mortgage loan officers, Lori started her lending career in 1995 after obtaining her bachelor’s degree in Finance from Western Michigan University.  You can connect with Lori Hiscock or apply online here. NMLS#404320.

Ruoff Mortgage Company, Inc. is an Indiana corporation licensed by the Indiana Department of Financial Institutions (DFI) and operates with the following licenses:

Indiana-DFI First Lien Mortgage Lending License #10994;
IL Residential Mortgage Licensee #MB.6760734;
Michigan 1st Mortgage Broker/Lender License #FL0017496.

Ohio Mortgage Broker Act License #MBMB.850220.000

The Florida Office of Financial Regulation License #MLD1182

Should I Refinance?

"Hey Lori, I saw online that interest rates are currently lower than my interest rate.  Maybe I should refinance."

I get this call from past clients all the time, and my answer typically surprises them.  "It might make financial sense for you to refinance, but - truthfully - it might not."

"What??  But the rate is lower!  Why wouldn't it make financial sense?"

It's a good question, and one I'm happy to answer for them - and for you!

The Benefits of Refinancing

There definitely can be benefits to refinancing.  The main four are:

1. Lower Interest Rate - This needs little explanation.  If you could pay a lower interest rate on your loan than you are paying now, that's a good thing.
2. Lower Monthly Payment - Typically refinancing also gives you a lower monthly payment which is nice. 
3. Shorter Term - Sometimes people refinance to get a shorter term as well, changing from a 30 year loan to a 15 year one, for example.  In cases like that, the monthly payment might actually go up even though the rate goes down just because they're paying it off faster.  They are typically saving a TON of money on interest with that shorter term, though, so it's still a good thing. 
4. Removing/Reducing Private Mortgage Insurance (PMI) - this is one that people often don't even think of.  If their home value has gone up since they bought it and they are currently paying PMI as a part of their payment, refinancing could remove or reduce the cost of that PMI.

So....WHY did I say it might not make financial sense to refinance?  There truly are situations where refinancing to a lower rate will cost you more money.  Let's look at those now.

Paying More with a Lower Interest Rate

The thing that people often don't realize about refinancing is that a lower interest rate doesn't automatically equate to less interest paid.  Why is that?  Because refinancing typically resets the loan term.

Let me give an example.  Let's say your mortgage balance is $70,450 and your interest rate currently is 4.75%.  You've been paying on the loan for 5 years now and you have an opportunity to refinance to 4.00%.  The closing costs will be $2,000 and will be rolled into the new loan.

If you continue to pay your loan as-is without refinancing, you will pay $50,056 in interest between now and the time it's paid off in 25 years.  If you refinance into a new 4.0% loan though, adding in your closing costs, you will actually pay $52,069 in interest by the time the loan is paid off.  

Why are you paying MORE interest with a lower interest rate?  Because by refinancing, you are stretching your loan back out to 30 years.  Adding in those 5 additional years will cost you more in interest, even with the lower rate.

Now, could you take the new, lower rate and pay it back over 25 years?  Absolutely!  And your payment would still drop $19.25/month if you did this.  The truth of it is though, few people actually do that. They probably intend to but, when the bill comes showing that new, lower payment, they just pay that minimum amount due.  By doing that they end up paying more for their mortgage than if they had left their loan unchanged.

Adding Permenant Mortgage Insurance

Paying more in interest isn't the only reason to potentially pass on refinancing, though.  If you currently have a FHA mortgage and are considering refinancing into another FHA mortgage,  you may be strapping yourself to unexpected mortgage insurance for the life of your loan.  

HUH??

Let me explain.  If a homeowner currently has a FHA mortgage and that mortgage was taken out before June 3,  2013, the mortgage insurance portion of their monthly mortgage payment will eventually go away.  When they have enough equity, their lender will remove that cost from their monthly payment, never to return.

On June 3, 2013 though, FHA changed that.  The majority of FHA loans taken out after that date will have mortgage insurance for the life of the loan, meaning ALL 30 YEARS.  

How does this impact your refinancing decision?  If you are going from a FHA mortgage to a FHA mortgage, if you intend to stay in your home for awhile and if you currently have a FHA mortgage that will drop that mortgage insurance charge in time, refinancing into a new loan that will have mortgage insurance charged all 30 years doesn't make sense, even if the interest rate is lower.

The Bottom Line

So what does this mean to you? Should you refinance if the rates are lower or shouldn't you?

It truly depends on your unique situation.  Some people should and some people really shouldn't.

Here's what you should do.  If you are curious about refinancing, contact a lender and ask them if it makes sense for you.  If they automatically say "Yes!", hang up and call someone else. They're not thinking about what's best for you.  They're thinking about getting another loan.

If they say "It depends", though, talk to them some more.  Or, even better - just call me!  I'm happy to do the math with you to see if refinancing makes sense or not.  If it does, I'll gladly help you save some money.  And if it doesn't, I'll tell you that too.

Lori Hiscock is a Sr. Loan Officer at Ruoff Home Mortgage‘s South Bend office.  One of Michiana’s top mortgage loan officers, Lori started her lending career in 1995 after obtaining her bachelor’s degree in Finance from Western Michigan University.  You can connect with Lori Hiscock or apply online here. NMLS#404320.

Ruoff Mortgage Company, Inc. is an Indiana corporation licensed by the Indiana Department of Financial Institutions (DFI) and operates with the following licenses:

Indiana-DFI First Lien Mortgage Lending License #10994;
IL Residential Mortgage Licensee #MB.6760734;
Michigan 1st Mortgage Broker/Lender License #FL0017496.

Ohio Mortgage Broker Act License #MBMB.850220.000

The Florida Office of Financial Regulation License #MLD1182

Big Reduction in FHA Mortgage Insurance Rate

For the past seven years, I have stood back and watched FHA's mortgage insurance rates go up and up and up.  FHA has always charge a monthly mortgage insurance premium (their version of Private Mortgage Insurance aka PMI), and rightly they should.  That premium helps cover their cost of losses in foreclosures, so charging it is only right.

The amount they charge has gotten a bit painful for my buyers through the years though, and that has bothered me. It was only 0.5% per year before 2008, but then it went to 0.55% before leaping to 0.9% in 2010.

That wasn't the end of it though.  2011 saw another huge increase to 1.15%, followed by a hop to 1.25% in 2012 before landing at it's current straining rate of 1.35% per year in 2013.

This high rate worked for FHA when they were the only game in town and - after the credit crisis - they were for many buyers.  Fannie Mae just recently re-activated their 3% down conventional option, though (YEA FANNIE MAE!), and Freddie Mac's 3% down option will be back on the market later this year.  With these lower down payment options and more flexibility being offered by the PMI companies, FHA is starting to feel the heat.

Thankfully, they've done something about it.  Today they announced a HUGE reduction in the monthly mortgage insurance rates, dropping it from the current 1.35% to a much more bearable 0.85% per year.  For the person borrowing $125,000, this will equate to roughly a $50/month savings on their mortgage payment.

This reduction will take effect for all FHA case numbers assigned on or after January 26th.  To make themselves even more beloved by the general mortgage populace, FHA will allow existing case numbers to be cancelled and reissued with this lower rate if the case number was issued within 30 days of today's announcement (January 9th). 

Some of you might recall a blog I wrote a few years ago where I broke up with FHA (FHA, I'm Dumping You).  Well, maybe it's time to reconsider.  FHA has come a'courtin' again, and I like the smell of their flowers.  Keep it up FHA.  Their might be hope for you yet.

(To learn more straight from HUD, click here for Mortgagee Letter 2015-01).

Lori Hiscock is a Sr. Loan Officer at Ruoff Home Mortgage‘s South Bend office.  One of Michiana’s top mortgage loan officers, Lori started her lending career in 1995 after obtaining her bachelor’s degree in Finance from Western Michigan University.  You can connect with Lori Hiscock or apply online here. NMLS#404320.

Ruoff Mortgage Company, Inc. is an Indiana corporation licensed by the Indiana Department of Financial Institutions (DFI) and operates with the following licenses:

Indiana-DFI First Lien Mortgage Lending License #10994;
IL Residential Mortgage Licensee #MB.6760734;
Michigan 1st Mortgage Broker/Lender License #FL0017496.

 

Sales Contribution or Sales Concession?

I have to admit it, I occasionally speak in mortgagese.  I'll be meeting with a home buyer and speaking perfectly normal English when suddenly I hear myself using words like 'escrow account', 'conditional commitment letter' and 'seller contributions'. 

These terms make complete sense to me but to the new home buyer?  I might as well be speaking a different language.  They have no idea what I'm talking about. 

To help you understand this lingo too, let me provide a little education on one of the most common terms used - seller contributions.

What is a Seller Contribution?

Seller contributions is a generic term we use in the mortgage and real estate industry to reference things given to the buyer from the seller.  Technically, though, contributions from a seller can consist of two different components - sales contributions and sales concessions. 

OK...Then what are Sales Contributions and Sales Concessions?

Let me break these out:

• Sales Contributions - these are any closing costs or prepaid items that are normally paid by the buyer when getting a mortgage that will instead be paid by the seller.  These can include things like loan approval costs, the appraisal, title work, home insurance, etc. 
• Sales Concessions - these are physical items or money given to the buyer by the seller, often as an inducement to purchase the home.  Sales concessions would be things like furniture, vehicles, weekend getaways, rebates or, most commonly, carpeting or repair allowances.

Are both Sales Contributions and Sales Concessions Allowed?

Yes, they are both technically allowed, but they have to be treated differently.

Sales contributions are allowed up to a maximum percentage of the home price.  If the buyer is getting a conventional mortgage, a seller can give up to 3% of the sales price of the home toward the buyers closing costs, prepaid items and inspections.  If the buyer is getting a FHA mortgage, a seller can give up to 6% of the home's price.  If the seller chooses to do this, it does not alter the terms or process for the buyer's mortgage approval.  As long as the contribution doesn't exceed that 3% or 6% maximum limit, all is good.

Sales concessions are treated differently though.  When they exist, the lender has to manually reduce the price or appraised value (whichever is lower) by the value of that concession prior to calculating how much they will lend to the buyer.  Because of this, the buyer typically has to bring more money to the closing then they would have otherwise to cover that difference. 

Does This Impact How I Write My Offer?

Yes, it does.  Knowing that these things are treated differently, you'll want your Realtor to write up your purchase agreement to work within these rules. 

Let's say that the seller was offering a $2,000 carpet allowance.  If the purchase agreement said "$2,000 carpet allowance from seller", that would be viewed as a Concession and that $2,000 would need to be deducted from the price before the lender set your loan amount, which would work against you. 

BUT - if instead your Realtor asked for $2,000 in seller contributions toward your closing costs and prepaid items, that would be fine.  It wouldn't change your mortgage terms at all.  You could then use the $2,000 you had saved up for your closing costs and instead use it for new carpet.

What if you want the seller to pay for your closing costs, though, and you also want the carpet allowance?  Then you're in a tough spot.  In situations like that, you'll typically want the seller to contribute towards your closing costs and then actually install the carpeting upfront instead of giving you money to do it later.  Or, you can have the seller drop the price by the $2,000 and figure out a way to replace that carpet yourself down the road.

There are multiple ways to address things like this, and you don't need to know them all.  You DO need to be working with a knowledgeable mortgage lender and Realtor, though, to guide and educate you on your options. 

I'd be honored to be that mortgage lender!  To apply for your fast, free mortgage preapproval, click here -Apply Online.

Lori Hiscock is a Sr. Loan Officer at Ruoff Home Mortgage‘s South Bend office.  One of Michiana’s top mortgage loan officers, Lori started her lending career in 1995 after obtaining her bachelor’s degree in Finance from Western Michigan University.  You can connect with Lori Hiscock or apply online here. NMLS#404320.

Ruoff Mortgage Company, Inc. is an Indiana corporation licensed by the Indiana Department of Financial Institutions (DFI) and operates with the following licenses:

Indiana-DFI First Lien Mortgage Lending License #10994;
IL Residential Mortgage Licensee #MB.6760734;
Michigan 1st Mortgage Broker/Lender License #FL0017496.

Declined the Day Before Closing

"I told her to call you first but she didn't.  She just went to her bank and now they're declining her and we're supposed to close TODAY!  Can you meet with her?"

Realtor calls like that always make my stomach hurt.  I want to help but, if the other bank declined their client, odds are good that they had a valid reason.  Admittedly, it's normally a reason that they should have spotted early on and not the day before closing but still - it's typically valid.

I'm always willing to try though and, at a minimum, help educate the home buyer on what went wrong and how to potentially fix it for the future, so I said yes and invited them to come to my office later that day.

"They said the PMI company wouldn't do it" she shared when we met.  "They said their bank would approve me, but the private mortgage insurance company declined me because of my previous foreclosure."

I reviewed her credit report and saw that, yes, she did have a foreclosure in November of 2007 which was less than 7 years ago.  She needed a conventional mortgage because of the condition of the house and 7 years is the magical number typically for conventional loans.

However, the mortgage in question was actually included in her bankruptcy from January of 2006, which was over 7 years ago.  This past July, Fannie Mae came out with a new ruling saying that - in situations like that - the borrower is held to the bankruptcy's waiting period and not the foreclosure's waiting period.  She had met the bankruptcy's waiting period so I felt the other lender might be able to educate the PMI company on this and still get her closed quickly.

"No.  Absolutely not.  I don't want anything to do with that bank.  Can you just make it happen fast with Ruoff please?"

Of course I could.  We started her loan immediately.  I had it to my underwriting area within hours and we were cleared to close within 2 weeks.

So how did I work around the problem?  Did I convince the PMI company that they should honor Fannie Mae's new ruling?

Nope.  I didn't have to.  I just used another PMI company.

Let me explain.  There is not just one provider of private mortgage insurance out there.  There are many of them with four primary providers.  While they all provide similar coverages at similar prices, they are not all the same.  One often gives lower rates when there are two borrowers on a loan.  One works great with down payment assistance programs.  And one?  It just trusts the lender to make the approval decision.

That's the PMI company I went with.  They don't have their own rules (often called 'overlays') that they apply to the approval.  This particular PMI company (Radian) says "If you have an approve/eligible response from Fannie Mae, we're in.  No further questions asked."

I sent them the approve/eligible response with the PMI order and, as promised, there were no further questions asked and the coverage was given (at a very attractive price, I might add).

And why didn't her original lender just do that?  Sadly, not all lenders will shop the PMI.  Many have one PMI provider they use and that's it.  If that one provider can't accommodate the unique nuances of the borrower, they will decline the borrower.

Thankfully, Ruoff doesn't work that way.  We not only work hard to make sure we're offering buyers a wide range of mortgage options, we make sure to have multiple PMI options as well.  Why?  Because it's the right thing to do.  

I'm starting to think that should be our tagline at Ruoff Home Mortgage :).  Doing it right, because it's the right thing to do.

Lori Hiscock is a Sr. Loan Officer at Ruoff Home Mortgage‘s South Bend office.  One of Michiana’s top mortgage loan officers, Lori started her lending career in 1995 after obtaining her bachelor’s degree in Finance from Western Michigan University.  You can connect with Lori Hiscock or apply online here. NMLS#404320.

Ruoff Mortgage Company, Inc. is an Indiana corporation licensed by the Indiana Department of Financial Institutions (DFI) and operates with the following licenses:

Indiana-DFI First Lien Mortgage Lending License #10994;
IL Residential Mortgage Licensee #MB.6760734;
Michigan 1st Mortgage Broker/Lender License #FL0017496.

Salvation from the Rapid Rescore

A Realtor I regularly work with called me last Thursday.  "Well, I doubt you can help this girl, but I thought it was worth a try having her talk to you," he said.

Hmmm....well that didn't sound promising.

I'm always happy to help people get moving down the right path though, so I got her name and number and gave her a call.

"OK.  Here's the problem" she shared as soon as we got on the line. "I was pre-approved with my bank and everything was great.  I made an offer on a PERFECT house and they accepted it but then I called my bank and they re-pulled my credit and said my score had dropped from 660 to 628 so now they can't give me a mortgage.  Can you??"

Going below 640

Good question.  This is the point in a conversation with a potential home buyer where my super awesome detective skills come into play.  I often can provide a mortgage to  someone with a 600-640 credit score, but they have to meet some 'ifs' so I have to ask some detailed questions.

Currently, a buyer can purchase a home in this credit score range if the down payment is their own money and not a gift, if they have a clean rental history, if they have a couple of months' worth of savings and if they have a clean credit report in the last 12 months (plus a few other smaller things).  I dug into this girl's story and...shoot...she didn't meet all the 'ifs' so we couldn't go below the 640 score for her.

Identifying the Culprit

That's not where I give up though.  I pulled a copy of her credit report myself to see why her score had dropped.  The other bank had told her it was because of a collection she had, but that collection was over a year old.  It wouldn't have made a change in her score in the last 60 days.

Thankfully, I spotted the culprit right away.  "Hey, what's the story on your Capital One credit card balance?  This report is showing you have a balance of $506 but your limit is only $500.  Is your balance really that high?"  "Oh. No!"  She replied.  "It was but I paid it off entirely last week.  I don't owe anything on that."

Eureka!  We had found the answer.  Having a higher balance on your credit cards can make your credit score lower.  Being OVER the limit though - that's a real score killer.  Her score had dropped over 30 points just because she was $6 over her limit.

"Does that mean I have to wait a whole month for the credit report to cycle before my score shows the new balance?" she wailed.  "We can't do that!  The home will be gone by then!"

I completely felt her anxiety.  Luckily, I had a plan.

Getting the Score Up FAST

"Typically, that is the route that a lender will take" I told her.  "Given this situation though, and the time sensitivity of getting you pre-approved again, let's go with route B.  I'll order a rapid rescore."

A rapid rescore is a tool that lenders have for situations just like this.  Rather than waiting for a credit report to cycle and let a score go up on its own, the lender can provide the credit reporting agency with proof of the item that has changed since the last report and ask for it to be rescored right away.  In this case, I just needed a printout from Capital One's website showing that she had made the payment and her balance was now at $0.

She got the paperwork to me Thursday night and I ordered the rapid rescore on Friday morning.  It typically takes about a week for these to come back but, thankfully, it only took three business days in her case.  The new credit report came back this morning.  And her score?  A shiny, workable 661.

When a Rapid Rescore Can Work for You

For this buyer, the rapid rescore was the solution.  She's getting me the rest of her paperwork today and we're going to get her in her new home in the next 30 days (yea!).

The rapid rescore isn't the right route for everyone though.  For starters, it's expensive.  If there is time to let the score go up on its own, we're going to go that route.  A rapid rescore should only be used when there isn't time due to the specific situation we're dealing with.

A rapid rescore can also only help with certain types of credit problems.  If there is an error on the credit report that is hurting you, it's a fit for that.  Common errors are things like a derogatory debt listed under your name that isn't really yours or something showing as an active collection or charge-off that has actually been paid off.

A rapid rescore can also work when the lower score is being caused by higher balances that have now been paid down, as in this situation.

To know what credit steps you should take for YOUR home purchase, you need a seasoned, knowledgeable lender to review your credit report and help you work out a plan.  If you are considering a home purchase in Indiana or Michigan, I'd be happy to assist with that.  I can be reached at lori.hiscock@ruoff.com.  Hopefully your story can have a happy ending too!

Lori Hiscock is a Sr. Loan Officer at Ruoff Home Mortgage‘s South Bend office.  One of Michiana’s top mortgage loan officers, Lori started her lending career in 1995 after obtaining her bachelor’s degree in Finance from Western Michigan University.  You can connect with Lori Hiscock or apply online here. NMLS#404320.

Ruoff Mortgage Company, Inc. is an Indiana corporation licensed by the Indiana Department of Financial Institutions (DFI) and operates with the following licenses:

Indiana-DFI First Lien Mortgage Lending License #10994;
IL Residential Mortgage Licensee #MB.6760734;
Michigan 1st Mortgage Broker/Lender License #FL0017496.

Mastering the Mortgage Letter of Explanation

In my 12+ years as a mortgage lender, I've found that there are some steps to the mortgage approval process that make a home buyer anxious and some steps that just make them annoyed. 

Price Negotiations?  Inspections?  Appraisals?  Anxious, definitely anxious.  Lender disclosures?  Documenting of deposits?  Letters of explanation?  Annoyed.  DEFINITELY annoyed.

One of my top focuses as a mortgage lender is to reduce the anxiousness as much as possible for my buyers and, as best I can, not annoy.  How do I do that?  By only asking for things that I truly need and by making it easy for my home buyers to give those items to me.

To help with that, I've recently written a little e-book.  Yes, these blogs were just not enough writing for me!  My new e-book, 'Letters Lenders Love' walks home buyers through the process of quickly writing a letter of explanation on any topic needed as part of their mortgage approval.  It also provides 30+ examples of ready-to-go letters that just need tweaked for a buyer's specific situation and then submitted. 

If you need a letter of explanation and would like a copy of the book, contact me or go to Letters Lenders Love.  It should help take some of the 'annoying' out of home buying and get you back to the fun of this exciting step in your life!