In life we always have changes, it's planning , planning and still more planning - the world didn't stop 12/31/1999 at 11:59 pm.  Will there be a learning curve for real estate agents, builders , lenders and mortgage professionals - 100%!  There's always a way of finding how to keep business moving - great ones are already doing so - PreApprovals are still part of the business.

FROM Origination News

The TRID Loophole the CPFB Says Is Legit

by Ari Karen

MAY 28, 2015 

Anyone who's closely read the nearly 1,900-page final rule for the TILA-RESPA Integrated Disclosures likely noticed a nifty loophole when it comes to how lenders can issue mortgage pre-approvals.

For everyone else, the Consumer Financial Protection Bureau recently clarified how a loan pre-approval doesn't automatically trigger TRID's three-day window for delivering initial disclosures.

The workaround was mentioned during a webinar hosted by the CFPB and Federal Reserve Board that also addressed new rules that prohibit lenders from requiring a borrower to provide verifying documentation prior to providing the Loan Estimate.

The CFPB first pointed out that TRID only prevented lenders from "requiring" such information, but that if voluntarily provided by the borrower it was permissible. Of course, the agency immediately followed up by explaining that a lender that explicitly or implicitly requires such documentation would be violating the law.

This obviously creates risks for lenders who expect to rely upon the borrowers' "voluntariness," since a borrowers' subjective belief they implicitly had to provide documentation could create risks for a lender.

However, it is only after all six pieces of information are collected that the requirement of a Loan Estimate is triggered. The CFPB also indicated that as long as a lender did not collect the six pieces of information necessary to trigger the Loan Estimate, a lender could obtain verifying documentation.

"The bureau does not believe that the definition of application will restrict creditors' ability to provide prequalification cost estimates or grant pre-approvals, because creditors could provide prequalification estimates and grant pre-approvals without obtaining all of the six elements of information that make up the definition of application," Pedro De Oliveira, counsel at the Consumer Financial Protection Bureau, said during the webinar.

Hence, as long as the lender does not, for instance, obtain the subject property address, the lender has no obligation to provide the disclosures and/or Loan Estimate.

Accordingly, those lenders that wish to provide pre-approvals may be well advised to consider making pre-approvals general, as opposed to specific to a designated property.

Ari Karen is an attorney at Offit Kurman.

Four Mortgage Loan Types and its Affect on your Credit Score

Loans can be broadly classified into secured and unsecured loans. While the secured loans are backed up by assets, the repayment of an unsecured loan is not guaranteed by any assets and hence carries higher interest rates.

Impact on your credit-worthiness

There are different kinds of mortgage loans that are available in the market. The first is the fixed-interest mortgage where the interest rate remains the same all through your loan period. The second type of mortgage is the adjustable-rate mortgage where the mortgage rates keeps changing during the loan tenure depending upon the prevalent market conditions. The third type of mortgage is the hybrid mortgage where a fixed portion of the mortgage carries a fixed interest charge and the remaining is floating interest charge.

The last of popular mortgage plan is the Federal Housing Administration loan which enables borrowers to get loan on a low down payment. Credit-worthiness of the borrowers depends on the mortgage selected where fixed interest mortgages have a positive impact on the credit-worthiness. Going for a second mortgage can also have a negative impact on the credit-worthiness of the customers. Selecting a good mortgage lender like the Steve Morgan a popular Bethany beach lender can help in selecting a good mortgage plan that is most appropriate for you.

When looking for buying property on hot properties like Bethany beach always remember to select the right mortgage lender so that you get the best possible deal in terms of the interest rate paid and post purchase service. 

Second Homes vs Investment Properties – Which Option is Better

If you have money to spare and would like to invest it in properties, you should understand the concepts of second homes and investment properties well. Steve Morgan, a Bethany Beach lender explains the difference between the two. Investment property generates income on a regular basis because you buy it to let it out. A second home on the other hand, is more of a vacation house which you may hope to sell when real estate prices in the area are booming.

Weighing both options

Now that you know the difference between these two types of properties, think about what would best suit you. If you have money as well as time to spare to look after the rental properties and attend to it various demands such tenancy agreements, repairs of utilities and collection of rent, then an investment property is the best option for you. It is an additional source of income. As people tend to buy these properties as close to their current residence as possible, communication and travel should not be an issue.

Vacation homes of course, are a little away from homes and may or may not be rented out. People who want a change of place from time to time, who like playing long investment shots, the ones who don’t want the hassle of maintaining another home and who don’t want their money to sit idle in a bank account should consider consulting a reputed mortgage broker to scout for and buy such homes with a reasonable mortgage.

Your Second Home Mortgage Options

Are you planning to buy a second home for vacation in exotic places like Bethany Beach or in a city that you frequently visit? Buying a second home is the time when you need to exhibit some sound financial skills.

Choose wisely

Mortgages on second homes also offer the same tax benefits as those offered by the first homes. If the decision to purchase the home is taken before retirement, it is advisable to opt for longer repayment periods of up to 30 years so that the mortgage repayment will not eat up much of your monthly budget. Opting for the right mortgage lender like Steve Morgan, one of the top mortgage house lenders in Bethany Beach, can ease the process of loan application and repayment.

A good mortgage lender can give you the right advice at the time of applying for a mortgage so that you can make an informed choice. Lenders like Steve Morgan also give  multiple loan application options like quick, standard, and 5-step application depending on your need as well as requirement.

Rules for applying for a second mortgage are generally tougher than for applying the first mortgage. However, banks allot second mortgages easily if you have good payment record for your first mortgage and any other loans. Choosing a right mortgage lender for your second home is more crucial due to the limited repayment period that come with these homes. A second home in an exotic location is after all an indicator of your achievement in your life and career.

Questions to Ask Your Mortgage Lender

Mortgage lenders help you in finding the exact mortgage loan that will suit all your needs. The lenders have every kind of information on mortgages and should be willing to share the information with you. So, it is important to get to know what questions you should ask to your Bethany Beach Lender, before signing a mortgage contract.

Answers you need to know

The first question you should ask is about the Annual Percentage Rate. Lenders could hide small fees and charges that might lead you to paying more money. The APR takes into account all of the extra charges, so it is better to know it before getting a loan. Your second question should inquire about escrowing your insurance and taxes. Some prefer to pay them all at once, others over a period of time, and hence talk with your lender about whether you have to make an escrow account or the lender will sort it out for you. Other questions you could ask is about prepayment penalties on the loans, or whether to not do something that changes you financial information or credit report before the closure of your loans.

Such questions, if asked correctly, can lead to a better experience when applying for a mortgage loan. Steve Morgan says to get your facts right before making any applications for loans on Bethany Beach, Delaware. For more information on how to get a mortgage loan, get Bethany Beach Lender to help you out. 

Home Loan Mortgage Interest Rates

The first thing you look for when shopping for mortgages is the APR. With so many mortgage providers, it is a well-known fact that the plethora of APRs offered are vast. They all tend to circle around the general rates levied by the big banks in the USA such as BOA, but specialized mortgages such as those provided for Veterans or by the US Dept. of Agriculture have different APRs and their applications.

Interest rates for different home loans

Steve Morgan of Bethany Beach Lender has made a few observations in respect of some of these mortgages:

1. Mortgages provided by Federal Housing Administration are useful for people with average credit scores of about 580 and pay a 5 percent deposit for the house. Their APRs are also comparatively lower. Their monthly mortgage insurance premiums (MIP) however are higher and so it is at the time of closing so that should be accounted for when you review this mortgage option.

2. Provided by the Department of Veteran Affairs, these mortgages having everything going for them – their APRs are the lowest, they do not require MIP no matter how low our down-payment is, you can get 100 percent financing under this mortgage (no deposit payable at all) and the deal-clincher is the mortgage portability to the new buyer, should you choose to sell the house. Your course should have some military background to consider this mortgage.

3. Conventional Mortgage APRs – Provided mainly by Fannie Mae and Freddie Mac, this lending duo provides mortgages at reasonable APRs provided your credit score is above 680 and you make at least 20 percent of the asking price as the down payment. Lower your deposit, higher your APR goes except under special rate schemes.

4. Department of Agriculture mortgages – Loans are made available to people of rural backgrounds at extremely low APRs even with zero deposit. Their main criteria are the credit score (more than 620) and the debt-to-income ratio must be reasonable.

With so many options available in the mortgage market, it should not be too difficult for you to choose the right one provided you are able to furnish all necessary documents and keep a track of your credit score. Depending on your background, see if there are concessional APR-backed mortgages available before you apply for one.

What You Need to Know about Mortgage Loans

Retirees often look for places where they can settle for a peaceful life. They also prefer quite and scenic locations like Bethany Beach De. People looking to buy a vacation home or a second home also find Bethany Beach De a great option because of its location and weather.

Factors to know

If you are also among those who wish to buy and own a home at Bethany Beach, you must ensure that the required legal and financial aspects are taken care of properly. Once you find the right house, you will need to obtain a loan to finance your purchase. You need to understand the various types of loans available and select the right loan for you.

Loans come with different interest rates and you will find that almost every Bethany Beach lender offers a more or less similar rate. However, you can push for a lower rate without much hassle. All you need to do is ask for the daily rate card, which gives you the lowest rates charged for various loans.

Also make it a point to understand the mortgage insurance terms in a precise manner. Make sure you know the conditions you need to meet before it is fine to stop paying for the insurance.

It is important to find a reputed and reliable Bethany Beach lender like Steve Morgan, who will not only offer you mortgage at affordable rates, but also guide you through the maze of paperwork and legal angles.  

Qualifying for a Mortgage Loan in Bethany Beach De

It is not very easy to get loans from banks and they look for certain factors when it comes to granting a mortgage loan. This is because they want to make sure that the applicants are financially capable of paying back the loan. Banks therefore assess loan takers thoroughly before loans are sanctioned to them.

What can you do to qualify for a loan?

If you are planning to get a mortgage loan for a Bethany Beach home, some of the factors that you need to keep in mind when applying for your loan are:

• Get adequate cash reserves for the mortgage down payment.
• Have an acceptable credit score.
• Be employed in the same field for two years or more.
• Have a monthly income that is higher than your monthly mortgage loan amount.

Apart from banks, there are also other ways of getting a mortgage loan easily. You can take the help of an owner to completely or partially fund the expenditure of your new home. Another option available is to take the help of a family member or a friend either as a co-signor or as the person purchasing the house in his or her name.

Utilizing the services of a mortgage broker is another way of acquiring a mortgage loan. Since they have a vast network of lenders at their disposal, they are the best people to help you find a lender who will give you the required loan amount. In this context, you can engage the services of well-known Bethany Beach lender, Steve Morgan.

Although the bank route is the most preferred option, you need to plan accordingly to save time, as well as to avoid the rejection of your loan application. At the same time, remember that there are options apart from bank loans that you could try.