News flash (and it is really a news flash): the federal government is stepping into the 21st Century but not until after the first of the year. Hey, it's a start.As mortgage loan and loan modification applications are reviewed by lenders, one vexing bit of paperwork has always been the IRS form 4506-T. This form, signed by the borrowers, allows the lender to independently … [Read more...] about Government Greases the Wheel. Finally.
Archives for November 2012
When a self employed borrower applies for a loan modification the lender will document the request in a similar manner compared to someone not self employed. An underwriter will review current monthly income and attempt to establish a lower rate that will provide a more affordable payment. The lender will use a standard debt to income ratio of around 38 percent to establish … [Read more...] about Loan Modification Rules for the Self Employed
When you spend time and effort getting mortgage rate quotes from lenders it's not exactly a fun thing. In fact, it can be compared to a trip to the dentist to get a tooth pulled. Well, maybe not getting a tooth pulled but close. At least you're in the dentist's office. Or so it seems. Lenders use different terminology, quote different fees and different rates. But when lenders … [Read more...] about Read the Big Print
If you're in the process of modifying your home loan and your lender has said that your debt ratios are too high, can you get someone to co-sign with you to help bring those debt ratios in line?Part of the loan modification review is determining how to get your debt to income ratio within guidelines. If your rates adjusted upwards due to a sub prime hybrid or you've lost … [Read more...] about Will a Co-Borrower Help With a Loan Modification?
You've done your homework, interviewed various lenders and got solid quotes on rates and fees from all of them. You're good to go, right? Nope. You need to separate the tortoise from the hare. Is the lender quick or s l o w ?When you apply for a mortgage and you get a competitive rate quote it's important to understand that it costs lenders, and everyone actually, money … [Read more...] about Longer Approval Times Will Cost You