When you’re getting ready to purchase a home and need funds for the down payment and closing costs, it’s important that borrowers follow the rules in mortgage lending. One important factor is the source of funds. Where did the funds for closing come from? Source of funds falls under the Federal anti-money laundering law. In
When we had the last big mortgage meltdown, the feds said mortgage lenders can no longer lend on just a credit score and use income without verification of that income. These were known as stated income loans. All mortgage loans that fall under conventional, FHA and VA mortgages must now have income verified, either with
As consumers know, the feds are determined to raise interest rates beginning in March 2022 and have announced at least three more increases during 2022, in an effort to slow inflation. Mortgage rates are not directly tied to the feds raising interest rates and home loan rates look like they’ll settle somewhere in the low
Do you know the difference between an Interest rate and an APR and why it’s important to know what an APR represents when you’re buying a home? The difference between APR and interest rate is this: the APR (annual percentage rate) is not an interest rate but rather is a marker that illustrates the total cost of
In today’s mortgage market, borrowers see ads about how rocket-fast it is to apply for a mortgage. They’re lulled into thinking a mortgage is as quick as pushing a few buttons on a computer or smartphone, or talking to a person many miles away on the telephone. In either of these scenarios, the online mortgage
When you’re preparing to purchase a home or apply for a new mortgage or refi, there are some things you really should not do. We call them “The 10 Commandments of Lending”. Here are some of the most important ones: Thou shalt not buy a car, truck or van or thou might be living in
Frequently, we hear potential borrowers who say they are shopping their mortgage around and would like a second offer. That’s great, that’s what we’ve advised since Indigo Mortgage opened in 2003. Most commonly, when they tell us they’d like to see our interest rate and fees on their home loan, the other lender is a
Here’s some great news for New Mexico homebuyers! Fannie Mae (the Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation), the private corporations chartered by Congress to provide stability and affordability to the mortgage market, have raised the maximum loan limit from $548,000 to $625,000. This increase means that a borrower can
If you’re about to purchase a new home or refinance your mortgage loan, you are bombarded daily with ads for mortgage loans. They’re especially aggressive from the national lender whose name rhymes with “Pocket” and the big internet lenders who say they can manage your home’s purchase and mortgage. But do big internet lenders really
It’s early October in New Mexico, and we’re seeing more than hot air balloons rising. We are seeing mortgage rates rise from the historical low rates of the last year. Unfortunately, we are also seeing many online lenders still offering those low rates from several weeks ago. These mortgage lenders are not being truthful in