Mortgage Education [Best of 2020 From Mortgage Loan Officer Stephanie Weeks!]

Mortgage Education [Best of 2020 From Mortgage Loan Officer Stephanie Weeks!]

so what is a mortgage a mortgage is an agreement to repay a loan and the lien or the collateral for the mortgage is the property that you own so some states are different but in the states that i practice in or um whatever the right word is lending they are lean states and what that means is that i own my home you own your home but if we have a mortgage there's a lien against the home a promissory note that you're promising to repay based on the terms that you agree to how does a mortgage work so basically the lender is going to look at your situation and they're going to look in a lot of detail people be prepared there's going to be questions and there's going to be more questions and more information put yourself in the shoes of the mortgage company let's say that you were going to lend someone 200 000 of your money you would want some details right and you would want to verify those details in writing and you would want to verify that information from third parties and that's part of how the mortgage process actually works should you do a 15 or 30-year mortgage well the easy answer is if you can afford a 15-year mortgage i would absolutely always do that in any case many times you're going to see a half percent difference in your interest rate that's a lot of things changing with that right now but that's from my 16 years of experience until the last few weeks but um so you're typically going to save a good bit of a difference on the rate between the 15 and 30.

It's a nice reprieve a nice gift right and of course you're gonna have 15 years left of principal and interest mortgage payment so that's a huge savings on top of the interest savings correct correct so with all that being said a 15-year mortgage is going to save you a tremendous amount of money so what are the top three things that you should ask your potential mortgage lender number one ask them what their process looks like explain their pre-approval process and what is involved in that ask them number two will you be dealing with them directly from start to finish and if not how many people can you expect to be communicating with you through the process number three be sure to ask what loan types they do what if they don't do rule development and that's going to be your best fit not every lender actually offers every loan type so make sure that you ask that as well those are my top three questions that you should ask your potential mortgage lender pre-covered for so many years i've been closing mortgage loans on an average of two weeks before trip came into effect which is a bunch of um new compliance and regulations before then my fastest mortgage loan that i closed was in four hours yes took completed package from another lender that was a denial was able to get the whole entire process done in four hours the title was done the appraisal was done the insurance like all the stuff was done now by law you can't close sometimes in less than eight days or 12 days all depending upon a number of factors even besides that in the past few years i've been closing loans on average about two weeks which is great you're in out the customers are happy they're not taking up and losing a lot of their time so it goes really well well during covid then that two weeks went up to around 60 days on average because the industry got completely bombarded and now i say sense code even though it's not totally done yet but we're kind of rebounding and getting a little bit better everybody's getting a little bit um less backed up shall i say and i would say that most of the loans now on average are closing between 30 and 45 days god i am so fancy right look at this so cool professional fancy anyway so in order to accurately calculate a potential mortgage payment we needed to know the loan term the interest rate if there's pmi how much is it if there's flood insurance how much if there's home insurance to get the principal and interest from the loan information above how much is property taxes and how much your home association dues so we're figuring out a monthly mortgage payment so what do lenders generally look at when it comes to your budget so the black and white good old days was always 28 and 36 28 of your income should go to your house and when you add your house and all of your other debts it should not be more than 36 that is like perfection right well that hasn't been around for quite a long time now just because everything changes so i would say ideally the lower the better do not get me wrong but shoot for 30 shoot for 28 but don't go above 35 percent i don't think that's really safe to have a payment that's more than 35 of your monthly income so that's what the lender is going to look at is or one of the things they're going to look at is how much is your income in relation to that new proposed house payment i could be wrong but i don't think that i am when you go to get your credit score why do you want to know and why do you care well you want to know because you probably want to know what kind of grade that you're going to get if you go to apply for a loan and especially with a mortgage what's that credit score going to be so if you're pulling from these apps or these free sites and getting a score but you don't know what score you're getting that's why i have 15 conversations a day that go like this oh hi i've got your application everything looks great i've pulled your three credit scores i have a 620 a 622 and a 645 and the phone goes silent and like well what do you mean i don't have a 700 i went on this app and i went on this website and my credit card said it had 700.

insurance policy

Well that's because there's different grading scales and that's because i'm pulling for a mortgage which is a different type of pull than some of the other polls it's so confusing and it's also frustrating and it's a big piece of information that's not being shared clearly with the consumer so of course track your credit of course get your scores of course monitor your credit on a constant basis but know why you want your score know what score you're getting and make sure it's relevant to the reason that you want it because it's usually not relevant to mortgage loans within my experience of the 15 conversations i have a day that repeat just like what i just said be happy to rewind and replay it for you a mortgage interest rate lock is you locking into a rate on a specific property and for a specific period of time based on your parameters and as well as your pre-approval i know it seems weird and there are some exceptions to this but i've always wondered in the 16 years i've been doing this like why don't we lock into a person right but most lenders actually lock into a property and for a period of time linked with a person so if you lock in a rate on property a and then that falls through for some reason inspections or something like that and now you go into property b it's actually going to be a different rate lock and may even be a different rate because rates change multiple times a day every single day it's a constant moving target what is pmi pmi stands for private mortgage insurance and pmi is associated with conventional loans this is not to be confused with mip that's mortgage insurance premium typically associated with government loans such as rd va or fha would be another example why is pmi not that bad i'm going to tell you why because pmi gives customers buyers the opportunity to own a home when they otherwise might not be able to so many people do not have 20 and 30 percent down so put yourself in the shoes of the lender if you are lending somebody 400 000 would you not want to take out a policy to insure yourself if they don't put enough skin in the game well that's what that means if you have a large down payment aka scanning the game and you're doing a 20 down at least conventional loan that is the way to avoid mortgage insurance with va fha rd that is not the same case and that's one thing that so many people get confused on so so many people say oh my gosh pmi is such a waste of money it's so awful it's not awful because you know what then you wouldn't be able to buy the house would you rather buy the house and pay an insurance policy that protects the lender so that they go ahead and extend that money to you so that you can have home ownership or save up 20 or 30 percent well at least 20 and not have that mortgage insurance well honestly a lot of times it's not going to be an option to buy if you don't have the 20 and a lot of us just don't have that 20 so pmi or mip allows us that opportunity for homeownership that's why it's not so ugly underwriting what is it well to sum it up it is the person that is behind the scenes to make sure that you meet all of the guidelines required to obtain the mortgage loan that you are applying for and for the most part this is a person who's basically just double checking your loan officer and double checking your processor to make sure that they've covered everything and this person works very closely along with your loan officer and your processor to see that you get through to closing again what they do is they have all the rules they have all the books they keep them handy if you're going fha they make sure that you meet those requirements if you're going rule development they want to make sure that you meet those requirements if you're going conventional same thing if you're going va same thing these underwriters sign their name to these approvals and they are licensed and their jobs on the line so they need to do a good job and they need to make sure they don't miss anything they're not trying to be difficult at all they're just trying to make sure that you approve based on those required guidelines thank you for watching if you have not subscribed yet why not go ahead and do it what's it gonna hurt seriously though subscribe to the channel don't forget to hit the bell to be notified please do share these videos and the channel with your friends and family to help me spread my mission of mortgage peace and since you're here with me today and you're visiting anyway stay a little longer check out some of these other videos i'll drop some links up here

As found on YouTube

Looking to see what kind of mortgage you can get? Click here to see

Leave a reply

Your email address will not be published. Required fields are marked *