Showing posts with label Mortgages. Show all posts
Showing posts with label Mortgages. Show all posts

Monday, February 13, 2017

2/11 Radio Show: Linda Mallia

Your Host, Peter Hunt, welcomes Linda Mallia to the show!

Linda Mallia is President of HUNT Mortgage.

Together, Peter leads the discussion on current low housing inventory and the world of financing.

To find out more, listen to this week's show!

Wednesday, April 6, 2016

Buying a Home? Uncle Sam Might Be Able to Help

If homeownership is your goal, Uncle Sam wants to lend a hand. This graphic can help you understand the types of mortgage loans and decide whether you meet income and credit qualifications for a government-backed mortgage.

Wednesday, January 27, 2016

Required Mortgage Documents

We know buying a new home can be intimidating, especially for first time buyers. Loans, taxes, interest rates, insurance and all the paperwork that comes along with them can seem overwhelming.

Here is a list of paperwork you’ll need to help the process go more smoothly.

• W-2 forms for the previous 2 years
In most cases, the most recent W-2 will suffice. If you receive overtime or any bonus income you wish to include for qualifying purposes, you will need to provide 2 years of W-2 forms.

• One month of paycheck stubs
The mortgage company’s purpose in obtaining all of this paperwork is to ensure that you are capable of repaying your loan. Loan guidelines typically require proof of one consecutive month of income with pay stubs. If you are paid electronically, ask your HR representative if it’s possible to access a corporate website to print your stubs.

• 3 months of bank statements
One of the easiest pieces of documentation to attain will be your bank statements for the last three months. These documents will be examined for any large deposits. The source of all large deposits must be documented. Remember to include all pages of your bank statements - even if they are blank.

• Tax returns for the last two years
In many instances, you will be required to submit the previous two years’ worth of tax returns with all of the pages included. you will be required to sign IRS Form 4506-T which allows the lender to obtain a copy of your returns from the IRS. This has become industry standard fraud prevention.

• A list of all debts
Most of the documents you provide will be to prove your income to lenders, but a list of debts tells them how much you owe. This documentation is key to calculating your debt-to-income ratio. Debts include credit card payments, student loans, child support, rent/mortgage payments, etc.

• Recent statements for security accounts
It can be helpful to your loan application to document additional assets, such as stocks and bonds you’ve purchased, investments made in your company’s 401k or life insurance. You will need to submit statements to verify these accounts. Having security assets lets lenders know that you have enough to cover any large unexpected expenses that would otherwise prevent you from making your payment.

• A list of additional assets
Assets aren’t just stocks and saving accounts, they also include material items with significant value, such as a boat or land. Make a list of any additional assets and come prepared with documentation.

• Cancelled checks for one year of rent/mortgage payments
This may be proven through your bank statements, but some lenders may request cancelled checks for your rent or mortgage payment for the last 12 months. This will show that you have been responsibly paying on time each month.

• P&L statements or 1099 forms (business owners only)
During the housing market boom, many self-employed borrowers were able to secure loans with little to no proof of income. Eventually, these sub-prime loans are what lead to the housing market crash in 2008. Business owners are now required to submit a current-year profit and loss (P&L) statement or a 1099, depending on when you file the loan.

Planning ahead by having all of your documents prepared, being organized, following the 5 Financial Don’t for Homebuyers and responding quickly to requests from your lender will ensure you get into your new home as quickly as possible. For your convenience, we’re created a free downloadable checklist of the paperwork you’ll need to provide your mortgage consultant.

We understand a mortgage is usually one of the largest financial transactions of a person’s life. That is why HUNT Mortgage provides all of our New York, Florida and Arizona customers with personalized, quality service. We offer a variety of products, and our mortgage consultants are trained to assist borrowers in selecting the best mortgage program to meet their own unique financial situation. Contact us today for more information.

Wednesday, January 6, 2016

Breaking Down Closing Costs

Closing costs are any costs related to completing a real estate deal. These costs include bank fees related to obtaining a mortgage and outside fees such as appraiser and title search fees. Both the buyer and the seller are subject to closing costs, and the closing process can be confusing for first-timers, who are often unprepared for the amount needed to take care of these fees. This guide will help you plan so that you can avoid surprises when closing time arrives.

The actual amount of closing costs will vary depending upon the total cost of the purchase. In general, the buyer can expect to pay two to four percent of the purchase price, while the seller should budget for somewhere between eight and ten percent of the final selling price. The buyer will be required to pay a larger amount if the final cost is over one million dollars. In this case, a mansion tax applies to the purchase. The seller typically pays more because they are responsible for broker fees, which normally amount to six percent.

Costs to the Buyer
The buyer is responsible for title insurance and bank fees connected with the mortgage, which will include the bank's attorney fees and an appraisal of the property value. Other costs include title insurance, a mortgage tax, and attorney fees for a lawyer to represent your interests in the deal. The buyer is also responsible for the developer's costs if needed and an additional mansion tax if the purchase price exceeds one million dollars.

Costs to the Seller
One of the biggest expenses for the seller is the brokerage fee. These costs can sometimes be negotiated, but rarely do they fall below five percent. The seller must also cover a transfer tax that ranges between 1.4 percent and 1.825 percent, depending on the final selling price.

Saving on Closing Costs
At times, there may be opportunity for both buyer and seller to save money on closing costs. For the buyer, buying a nearly new home, rather than completely new, will help eliminate the developer's costs. The seller can save money by shopping around for the best rates on broker fees. Real estate attorney fees can also vary by a few hundred dollars, so shopping around for the best deal will save money. There is also a chance to work on splitting certain costs between buyer and seller, especially if the seller is still paying off a previous mortgage on the property. This kind of deal will normally save money for both parties.

It is better to budget toward the higher end of expected closing costs so no surprises arise on the day of closing. By knowing what to expect in advance, you can take time to look around for the best possible fees available. An experienced lawyer who specializes in real estate can also be your best resource when it comes to lowering costs. It could save you hundreds, if not thousands, of dollars in the end.

Wednesday, September 2, 2015

5 Financial Don'ts for Homebuyers

Deciding to buy a home is one of the biggest decisions you’ll likely ever make. If finding your dream home wasn’t hard enough, you also have to make sure your finances are in order to purchase it. Here are a few simple steps that you can take to make the buying process smoother.

1. Don’t Change Jobs or Quit Your Job.
While a job change could be better for you in the long run, changing while you’re searching for a new home, or even after securing a lender, could delay your settlement. The loan amount your lender will approve is based off your average income for the past 24 months, so any change in income or pay structure matters. This also includes accepting a promotion. Although a pay raise at your current employer likely won’t stop you from receiving the loan, it could delay the process without the proper documentation. For any job change, your lender will need to see an offer letter, a role change letter and your most recent pay stub reflecting the income change.

2. Don’t Buy a Car (Or Make Any Other Large Purchases).
You’re getting a new house, why not get a car to go along with it? While it might look nice in your new driveway, purchasing a new vehicle before your closing could put your loan in jeopardy, even if you can afford it. Lenders take into account your debt-to-income ratio. If you tip the scales by committing to more debt by making a large purchase or co-signing for someone else’s purchase, you could be denied.

3. Don’t Make Any Changes to Your Credit.
Don’t close any credit card accounts. Don’t apply for a new credit card. Don’t miss a credit card payment. Don’t personally check your credit score. All of these things may seem fairly harmless – closing a credit card even seems beneficial – but each of these things can lower your credit score. Any change in your credit is a major red flag for lenders, so don’t make any large purchases and pay your bills on time.

4. Don’t Make Large Deposits Without a Paper Trail.
If you’re fortunate enough to find yourself with a wad of extra cash that you need to deposit, you’ll want to contact your lender before heading to the bank. They’ll be looking at your bank statement before closing, so a large deposit can raise eyebrows. You’ll likely be required to provide paperwork explaining where the money came from.

5. Don’t Dip into Your Savings.
A mortgage is vital in purchasing your new home, but the price of the house is not the only cost you incur when you buy. There are other expenses like a down payment and closing costs that you’ll be expected to have money on hand to cover. Dipping into your savings is concerning to lenders. Make sure your funds stay in place.

All of these tips boil down to one thing - lenders want to feel secure. Avoid major changes in your financial habits during the months leading up to your home purchase. When it comes to your finances and buying a house, consistency is key.

Thursday, December 6, 2012

Be Proactive When Selling Investment Property, Anticipate Areas That Could Break The Deal

A message from Greg Oehler, Chief Operating Officer at HUNT Commercial 

Sometimes, when buying investment property you feel like you’re walking through a minefield. You look at properties available, have a licensed real estate professional draw up a contract, get necessary documentation from the seller and then, out of the blue the deal explodes! What appeared on the surface to be a solid investment suddenly vanishes into thin air. Now it’s back to the drawing board for everyone involved. What happened?

Were the expenses understated? Was the existing mortgage information incorrect? Were the rent rolls accurate? Was the property assessment misrepresented? Closely examining every investment property will usually reveal areas of concern that may need serious attention. If nothing else, be proactive, ask questions, seek total understanding of the property and its financial performance. By doing so, you will save a lot of time and eliminate the frustration of having to walk away from the deal.

For example, suppose the net operating income for a large apartment complex appears to be rather low. First, examine the expenses and verify their accuracy with the owner. If they are overstated, that will improve the financial picture. However, if the expenses are accurate, then look at each expense item to see where money can be saved. If the insurance appears too high, ask one of our HUNT insurance agents for a policy review to see if money can be saved. If the interest expense is too high, call HUNT Mortgage or a commercial banker and see what they offer. If the property uses a management company, are their rates competitive? If the complex does the landscaping and snowplowing, could they contract it out or vice versa and save money? Are the property taxes too high? Is the assessment accurate? Does the local municipality offer PILOT (payment in lieu of taxes) programs? Every major expense category can and should be examined for possible savings. In addition, examine the rent roll. Are the rents too low? When was the last rent increase? Is there opportunity to increase the monthly rates?

An experienced real estate salesperson can assist you in asking the right questions early on in the game. Certainly due diligence will uncover possible “deal breakers,” but why wait? Take it upon yourself to carefully study the numbers, look beyond what you see on paper and develop strategies to improve the rate of return.

The point being, work with your real estate agent to come up with alternatives. Take the initiative, and talk to other professionals: insurance agents, mortgage brokers, bankers, management companies, municipalities and landscapers etc. By doing so, you will improve the value of the investment and save yourself time and money. Contact a HUNT Commercial real estate agent today and find an experienced professional to help you make the right decisions!