Posts Tagged ‘Mortgages’
Vanilla Now 31 Flavors
Vanilla Mortgages now 31 Flavors!
In the past, conforming and FHA mortgages have been considered “vanilla” mortgages. The reason for that label is that for many years these loans were very easy to do. Simply put the information into the computer and voiloa! you had your approval. My have things changed!
Over the past several months, lenders have changed guidelines and added “layers” to the risks involved with creating a mortgage. Used to be if you put 20% down, you pretty much could get approved. Now, even with 30% down, some people are having trouble. Why is that?
I would tend to think that the biggest reason so many lenders are getting turn downs is because they don’t know how to structure the deal properly from the beginning. Too many loan officers are just trying to keep up and have no way to keep up with the changes in the marketplace. So more and more loans are becoming turndowns. And once turned, too many loan officers have no idea what to do next and can’t give any advice on how to improve the chances of getting approved.
The Carolina Mortgage Connection works with all loan appliacants. We have great success with the Good, the Bad and the Ugly! The Good still require more work that we have seen in the past, and while almost any monkey can get someone with a 720 credit score approved, we specialize in structuring the deal to get it closed quickly and efficiently. The bad and the ugly require more work, but our success rate in getting approved and closed is high!
If you are in the market to buy a home in Charlotte or to refinance your Charlotte mortgage loan, let the mortgage loan experts in Charlotte get your mortgage application approved! Call us now at 877-411-9327.
Get Multiple Mortgage Loan Offers Now! Mortgage loans for all of the Carolinas, including Charlotte, Raleigh, Matthews, Concord and more! All mortgage applications and requests are submitted through LendingUniverse.com, an affiliate partner that can provide you with multiple loan quotes and offers from lenders.
Beyond the Approval Limits
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Going Beyond the Approval Limits
One of the goals of getting pre-approved for a mortgage loan is to help determine how much home you can qualify to buy. In the best situation your lender will go beyond a pre-approval and seek to provide you with an automated approval.
An automated approval uses the major underwriting systems in the mortgage industry to determine a yes or no for a mortgage application. If the system says yes, it will list the requirements needed to get the loan closed. This is great because the job of an underwriter is to simply check off the boxes. The yes or no has already been done. Now its a matter of making sure the lender is getting the required documentation in order to fulfill the approval.
If the automated system says no, then a mortgage application would need to be submitted for a “manual decision.” With a Manual Underwiting decision, the underwriter has to make the yes or no decision. And since the automated system said no, the manual underwriter will be more on guard. After all, there was a reason the loan was declined… so what is being submitted to prove that the automated system is wrong? Well, that is the job of your lender.
With all this being said, a common question is “can we get more?” In other words, a potential buyer is approved using the automated system up to a certain dollar amount, but wants to know if they can exceed that number when looking for a home. Maybe the approval limit is lower than they hoped. Or maybe there are a couple homes that are just a bit above the approval. Either way, the question is can they go bigger?
If your pre-approval is from the Carolina Mortgage Connection, and it was based on an automated approval, the answer is…. maybe, but proceed with caution! If I could not get an automated approval for the dollar amount you need, we can certainly seek a manual approval. but be aware that this can take a bit longer, there is a greater chance of being declined (and getting frustrated) and in some cases (such as FHA) you could be disqualified to apply again for up to 6 months. Personally, I advise against going for a manual approval when you have an automated one. Why make things more difficult? But if you just can’t find a suitable home within the approval limits and have truly exhausted all options, a manual submission may just work.
Get Multiple Mortgage Loan Offers Now! Mortgage loans for all of the Carolinas, including Charlotte, Raleigh, Matthews, Concord and more! All mortgage applications and requests are submitted through LendingUniverse.com, an affiliate partner that can provide you with multiple loan quotes and offers from lenders.
Wachovia Loan Changes
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Wachovia Bank, Charlotte Makes Changes
Wachovia Bank, based in Charlotte NC, announced that they will be adding new minimum credit scores to many of their mortgage products. This move is not surprising as most of the mortgage industry has imposed higher credit standards in wake of the current credit and mortgage markets.
Wachovia offers a limited range of retail mortgage products (typical big bank offerings) and is also well known for the “Pick a Payment” loan. Wachovia also offers their mortgage products on the wholesale market to lenders and brokers.
As a mortgage lender in Charlotte NC, the Carolina Mortgage Connection has the ability to broker mortgage loans to Wachovia’s wholesale division. The advantages of choosing the wholesale direction is that we can typically obtain lower mortgage rates than the retail side of their business. This is because the retail rates of any bank must account for the marketing and advertising the bank does to get you in the door. Just something to think about.
Get Multiple Mortgage Loan Offers Now! Mortgage loans for all of the Carolinas, including Charlotte, Raleigh, Matthews, Concord and more! All mortgage applications and requests are submitted through LendingUniverse.com, an affiliate partner that can provide you with multiple loan quotes and offers from lenders.
Buying Investment Homes as an LLC
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Q&A: LLCs and Buying Investment Homes
Recently a reader asked the following question:
Q: This is a question regarding the ability to lend to an LLC for the purpose of investment properties:
I’ve been working with a group of investors for about a year and a half now who is buying rental property in Charlotte. I sell, rent, and manage what they own. Up to the beginning of this year they have been buying the property using conventional financing in one of their own names and simply quit claiming it to their LLC.
As of a few month’s ago they have kind of reached a point where they no longer qualify for a conventional loan due to the number of properties they own, and they are looking for a bank that will lend directly to their LLC to purchase property. The goal is to buy 2-3 cash flowing rentals a month under the LLC. The group has a ridiculous amount of assets personally and plenty of funds to put down towards the purchases, along with a bunch of business experience and stellar credit.
Can this be done?
Surprise! Your Approval Denied.
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Recent Mortgage Changes Catching Buyers by Surprise
I have been getting a lot of phone calls lately from Charlotte area real estate agents and salespeople. It seems that they have been seeing a lot of mortgage approvals getting denied! What in the world is going on?
One of the most common concerns has to do with big local banks, such as Bank of America and Wachovia. Because these are such big banks in Charlotte, many Realtors and sales people have just sent their clients to them. The problem is that large banks like Bank of America only offer Bank of America mortgage products. So when they make changes to their own mortgage loan products, it becomes a “yes or no” decision, not a “let’s move it to another program” decision.
Case in point… Joe was approved to buy his first home using a Charlotte FHA mortgage loan from one of these big banks. We’ll call them “Big Bank USA.” Joe didn’t have the best credit in the world, but it was enough to get approved to buy a home in Charlotte. When the approval came from Big Bank USA, Joe was excited to be able to buy his first home! But then, half way through the processing of his mortgage loan, something changed. Big Bank USA changed their underwriting criteria and implemented a credit score requirement that was above what Joe had. All of the sudden this approval was turned down.
Since Big Bank USA is only a bank, they had no other FHA mortgage programs to turn to. However, Joe’s loan is now with the Carolina Mortgage Connection. With the multiple lenders and programs available to us, we are working to place Joe’s loan with a viable lender and get it closed! If Joe had started his loan process with us, we would have been able to move things around a lot faster and easier.
The moral of the story is that big banks have far less flexibilty. The Carolina Mortgage Connection is part of Residential Mortgage Center in Charlotte, NC and operates under a Lender’s license in North Carolina. While we can make mortgage loan decisions using our own money, we still have the ability to broker and close mortgage loans with other wholesale lenders, giving us far greater flexibility and adaptability than your conventional banks. And with great low mortgage rates that rival Charlotte area banks, the Carolina Mortgage Connection will quickly become your most trusted source for mortgage loans in the Charlotte area.
Get Multiple Mortgage Loan Offers Now! Mortgage loans for all of the Carolinas, including Charlotte, Raleigh, Matthews, Concord and more! All mortgage applications and requests are submitted through LendingUniverse.com, an affiliate partner that can provide you with multiple loan quotes and offers from lenders.
Mortgage Refinance in Charlotte
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Need to Refinance your Charlotte Mortgage?
Now may be the best time ever to refinance your Charlotte mortgage loans. A mortgage refinance loan in the Charlotte area is still fairly easy to do. In most cases you can lower your mortgage interest rates, lower your mortgage payments and often times can consolidate other higher rate debts.
Many areas around the country are having trouble with refinancing mortgages. This is due to the declining values. However, Charlotte does not suffer from declining values as our growth has been slower and steadier than the rest of the country. So that allows more flexibility and more options when it comes to a mortgage refinance in Charlotte NC.
If the interest rate on your mortgage seems high to you, chances are it is! If your current mortgage program is an adjustable rate mortgage, its time to fix your mortgage. Today, Charlotte’s fixed rate mortgages are cheaper than most adjustable rate mortgages! Sticking with that ARM with the fixed mortgage rate options available today may not be the smartest choice.
Let the professionals of the Carolina Mortgage Connection help you determine if you could benefit from a mortgage refinance loan in Charlotte North Carolina. From conventional mortgages to FHA and VA mortgages, we have all the options and programs to find the perfect fit for your needs. And with the lowest, cheapest, best and most affordable mortgage rates Charlotte has seen in decades, now is the best time to refinance your Charlotte home mortgage.
Get Multiple Mortgage Loan Offers Now! Mortgage loans for all of the Carolinas, including Charlotte, Raleigh, Matthews, Concord and more! All mortgage applications and requests are submitted through LendingUniverse.com, an affiliate partner that can provide you with multiple loan quotes and offers from lenders.
My Apologies to Charlotte Mortgage Companies
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To All Local Charlotte Mortgage Companies,
Please accept my sincerest apologies. It has come to my attention that due to my articles and information I am sharing with the general public, you may be losing business. With all the misinformation that has been put online, all the deceptive ads that have been circulated and all the gimicks that you are trying to pass off, it appears you are trying very hard to get customers. Read the rest of this entry »
Financial Hypochondria
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It had been a great day. Tina closed the deal of the week and now was ready to kick back and enjoy the weekend. However, after picking her daughter Chloe up from afterschool care, she noticed that Chloe did not look well. As she suspected, Chloe had a fever.
Tina decided to take Chloe to the doctor’s office to be checked out. To her dismay, Chloe has the flu! Somehow, on the way home from the doctor’s office, Tina wasn’t feeling so hot. She felt she too may be feeling bad and most likely also had the flu. And that’s when her illness hit her… hypochondria.
This is much like the financial hypochondria the nation is going through. Read the rest of this entry »
And The BS Floodgates Opened…
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Zillow Launches Mortgage Marketplace
That’s right! Zillow has launched their long awaited “Mortgage Marketplace.” This not-so-great idea is being billed as a place that consumers can get quotes from multiple lenders without having to provide any personal information. Spencer Rascoff, Zillow’s chief financial officer and vice-president for marketing claims, “This is a huge step forward in terms of putting borrowers in control and giving them access to information.”
What’s wrong with this, you ask? Read on… Read the rest of this entry »
Why do you?
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Why do you do that?
It’s a common question asked. When compared to Snakes, Liars, Politicians and Cheaters it’s easy to see why people ask me why I do what I do. But for me, the answer is easy! I love helping people!
I love helping a first time home buyer realize a dream they never imagined would happen! I love assisting a family buying their “move up” home because they have outgrown their starter home. I love helping a family refinance their home mortgage and save hundreds of dollars, allowing them to breathe a sigh of relief! I love helping our military veteransown a piece of this great country they have served!
In short, I love what I do!
Sure, there has been a lot of bad press about the mortgage industry as of late. Much of it, although somewhat misleading, is deserved. Over the past several years, mortgage companies offered ill-advised loans to the wrong borrowers. And with so much “easy money” flowing and over inflated profits realized, even the most reserved of mortgage lenders jumped too far in. So now the entire country is having to correct itself and many people are paying the price.
However, with all the bad news, there is good news too. The Charlotte North Carolina real estate market is still very strong. Charlotte mortgage rates are still at all time lows. And if you have been on the fence about buying a home, Charlotte FHA and VA mortgage loans could make this the best time to buy ever!
So when seeking a Charlotte mortgage company to work with, be sure to find someone that loves what they do. It should be their passion, not their job.
Get Multiple Mortgage Loan Offers Now! Mortgage loans for all of the Carolinas, including Charlotte, Raleigh, Matthews, Concord and more! All mortgage applications and requests are submitted through LendingUniverse.com, an affiliate partner that can provide you with multiple loan quotes and offers from lenders.