Proper Comparable Sales for an Appraisal

October 24th, 2014

I recently had a refinance client who got their home appraised for $1,000,000. You would think this would be good news, except that the client was expecting $1.2MM. Uh oh, I guess we didn’t get good news. However, the more important question is, did we get accurate news? In other words, was the appraisal valuation accurate and were the comparable sales used in the appraisal appropriate? This is where the debate started. Read the rest of this entry »

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I Need To Be Self-Employed For Two Years?

September 25th, 2014

I had a potential client call me recently asking for a quote on an interest rate. She said she had been pre-qualified by someone else and just needed an interest rate quote. I asked her to fill out my pre-qualification form anyway and she agreed. It’s a good thing she did. I discovered that she was never Read the rest of this entry »

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Writing an Earnest Money Deposit Check Off A Friend’s Checking Account?

August 14th, 2014

I have seen a few buyers be in a pinch for one reason or another, and not have immediate access to their checkbook. As a result, when writing an earnest money deposit as part of a real estate contract, they use any source they can find, such as a friend or a parent, figuring they’ll pay them back later. However, that can create a problem or at the very least more paperwork. Read the rest of this entry »

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Where is Your Down Payment Coming From?

August 7th, 2014

I sometimes have a client tell me they are getting their down payment to buy a new home from some interesting sources. I have had client sell an antique guitar collection on eBay, sell a car, get cash from a suitcase under their bed, and sell an art collection, among many more interesting stories. However, homebuyers need to be aware of what is allowed and what is not allowed. Some sources of down payment are not allowed. Read the rest of this entry »

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PMI versus LPMI versus 1st trust/2nd trust Combo Loan

February 27th, 2014

Everyone likes to think PMI (Private Mortgage Insurance) is evil. Everyone likes to think they should not have to pay it, and everyone wants to find a way around paying it. There are ways to work around PMI, but like all things in life, there are trade-offs. A person really needs to look at all the options and trades-offs, and consider how long they think they are likely to spend in their new home. Then everyone needs to consider paying PMI! What do I mean? Read the rest of this entry »

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Three Credit Reports to Get a Mortgage?

November 27th, 2013


A lender pulls three credit reports to issue a mortgage? Yes, potentially. One when you get pre-qualified, another at loan application, if loan application and settlement happens 120 days or more after pre-qualification, then the third check is just before settlement! Yes, now Fannie Mae, Freddie Mac, FHA, and all the rule makers require lenders to check for credit activity just a day or two prior to settlement. Read the rest of this entry »

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Pool Tables, Patio Furniture and Chandeliers Have No Value?

June 17th, 2013

Often times when a buyer and seller are negotiating over the sale of a home, the buyer indicates they would like to have certain personal property from the home. There are times when the seller is OK with that, either due to not wanting those items, or wanting the buyer to have them to help facilitate the sale.

However, there is a problem with this. The problem with including personal items like furniture, rugs, chandeliers, a pool table, and these sorts of personal items is that once they are written into the contract they inherently have value. Yet, the document being used to buy and sell real estate is a real estate contract, also used to contractually bind parties in a real estate transaction; it is not supposed to be a pool table contract! Read the rest of this entry »

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Anatomy Of A Deal

October 11th, 2011

Each deal has an anatomy. Anatomy is the bodily structure of an organism. These loan transactions can almost be considered an organism, they certainly take on a life of their own and they have multiple humans assisting and sticking their hands into the transaction along the way. Since there are so many moving parts I think it’s important to dissect this anatomy, understand how it all works, and understand how to make it work efficiently.

First, its important to realize all the players involved in each transaction, and the below list is not even 100% complete: Read the rest of this entry »

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