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
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
As we are seeing home mortgages and refinances at all-time highs, don’t be too quick to accept an offer from a national mortgage lender, without reading the small print. Most recently National lenders are attempting new tactics to entice homeowners with low rates and nearly impossible requirements to qualify. Not long ago a borrower came
Time for an update on options for Veterans Administration loans. First, the VA did away with down payments for VA Jumbo loans, those above $548,250. In the past, for Jumbo loans, the veteran was required to put down a certain percentage amount based on their guarantee available from the VA. This is no longer required,
Always ask your mortgage lender about origination and discount points to make comparing mortgage offers easier. Mortgage rates are still at historic lows, but all lenders are not equal in how they offer those low rates. It’s important to not only get the best or lowest interest rate available but more importantly to know what
Getting a lower interest rate doesn’t necessarily mean it’s a good time to refinance your mortgage. We often have borrowers call and ask, “Does it make sense for us to refinance?” We take this question very seriously as borrowers really just need someone to shoot straight with them. We tell them that it’s not our
Don’t reward bad lenders. Many mortgage borrowers in this market have heeded our call to shop their mortgage around, especially when dealing with that “quick in pocket-sounding lender” or that VA lender that is supposed to “unite” veterans. They call us because they want to compare offers to see if they are getting a good
Some lenders today are treating the biggest financial transaction of people’s lives like it’s as easy as buying a pair of shoes on the internet. You’ve seen the advertisements – “just click this button and get a mortgage”. Mortgages are a big deal and they are very personal, so why do internet lenders assume borrowers