If you’re shopping for a mortgage, you’re in the right place.

Posted by: Greg Fischer Post date: October 2nd, 2009

Looking for a great rate on a new home mortgage? There is more to it than you may think.

The mortgage industry is complex and ever-changing. We understand that most people are not mortgage experts, and that it can be difficult to sort though the hype. At Radiant Mortgage, we are dedicated to understanding how to help our customers qualify for the best loan available, as well as how to improve their financial health by providing the tools and education to impact credit, maximize wealth and eliminate debt.

I hope that you find the information here useful. Please use the form to the right to ask any questions, and by all means, if something strikes you, leave a comment.

Greg Fischer, CMP 26086

Alpine Mortgage 190380
116 S River Rd, Bld E, Bedford, NH 03110

P: 603-365-0901
F: 888-883-1164

greg@alpine-mtg.com

We’re local. We’re experts. We’re still here.

7 Deadly Sins of Mortgage Lending

Posted by: Greg Fischer Post date: December 30th, 2011

On paper, mortgage approvals are easy.  If you have a good credit history, enough income to pay the mortgage and other bills, a house with the required value and equity for your loan program and all the little details can be verified – you’re approved.

Staying approved can be a whole different matter.

There are a number of things that can make a good mortgage loan approval go bad. Some of them can’t be predicted or prevented – a flood, being laid off of work or legal issues with the property can all be deal-killing surprises.

There are also a number of borrower-created approval catastrophes that can be easily avoided – if you know what not to do. Here are 7 of the most common ways to get your mortgage approval denied:

1. Don’t do anything that increases your debt. The new car, financed furniture, or personal loan to “cover your costs” will all affect your debt to income ratio, and will at least delay your closing, if not disqualify you altogether.
2. Don’t change your job, pay structure or employer. And DEFINITELY don’t become self-employed until after closing.
3. Don’t transfer large sums of money between bank accounts.
4. Don’t forget to pay your bills. All of them. At least the minimum, at least on time.
5. Don’t apply for new credit cards or other financing. Period.
6. Don’t accept a cash gift without filing the proper “gift” paperwork.
7. Don’t make random, undocumented deposits into your bank account.

Important things to note:

1. Don’t break the rules.
2. If you must break the rules, talk to your loan officer before you do.

Sometimes, things happen. If you get a job offer in your field for double the income but you need to start next week, that’s probably OK. But you don’t want that to come up a day  prior to closing. If you get a bonus from work and you really need to deposit the check, that’s probably OK too. But you need to be careful to document the source. If you forget to pay a bill on time and that is reflected on your credit report, that’s probably not OK. Don’t do it.

Bottom line: anything that might change your credit profile, or your employment/income, or your verified assets needs to be cleared with your mortgage professional BEFORE it happens. Prevention is less painful than cure.

 

Giving Gifts – the Downpayment Kind

Posted by: Greg Fischer Post date: December 22nd, 2011

Just like presents during the Holidays, there’s a right way and a wrong way to give and receive gift funds for the downpayment on your new home. If you don’t follow the rules, you could jeopardize your mortgage approval.

Verifying funds – especially gift funds – is an exercise in “follow the money.” Every step of the money’s life cycle over the last 60 days needs to be documented. This is easiest with a little planning up front.

First, Get A Certified “Downpayment Gift Letter”

First, complete and sign a certified gift letter with the following information:

• Include the amount of the gift
• Include the subject property address
• Include the relationship of the gifter to the giftee
• State that the gift is actually a gift and not a loan
• All parties must sign and date the letter

If you need a certified downpayment gift letter for your lender, drop me an email and I’ll get one over to you.

Next, Follow These Good Gifting Guidelines

It’s all about the paper trail. Follow the money.

1. Start with the original source of the funds. That’s a bank (or stock, or IRA…) statement with more available funds that the amount of the gift. If transferring funds into a liquid account like checking, show where the deposited funds came from. Document the withdrawal and transfer. If the gift money wasn’t in the account before the last statement, the giver needs to show where it came from.
2. Show the transfer of the gift to the giftee. Use certified checks if possible.  A personal check or account transfer are acceptable gifting methods, but certified checks are easier to document and simpler to prove – all it takes is a teller receipt. Make sure that the gift amount matches the amount specified on the gift letter. No more and no less.
3. And, lastly, when receiving the gift, the giftee should be careful to accept the gift as-is. The amount of the gift deposit should match the amount of the gift. If the gift is for $10,000, for example, make a $10,000 deposit.  Don’t add a random $100 check to the deposit, or take some as cash.

Sound extreme? It’s easier than trying to re-create the paper trail weeks later, and much better than not being able to use the funds to close. Of course, the less paper solution is to have the funds transferred into the buyer’s account more than 2 bank statements before trying to close. If your last 2 statements don’t show a large deposit (gift or otherwise) it isn’t questioned. That’s called “seasoned” funds. If the deposit will show on either of your last two bank statements, be prepared to document it.

If during this other kind of season (the Holiday kind) you have any questions about financing or refinancing your home next year, I’m happy to make time to speak with you. If not, I wish you and yours a very Happy Holiday, and a productive 2012.

 

Consumer Choices – Opting Out

Posted by: Greg Fischer Post date: December 16th, 2011

Are you familiar with the National Do Not Call Registry? That is the service  where you can register your phone and cell phone number to opt out of sales and marketing calls. As of 2008, if you registered a phone number there, you will remain on the DNC list forever (if you registered prior to 2008 like I did, you may need to go back and reenlist your numbers buy calling 888-382-1222 or visiting the Registry.)

But you don’t need to stop there. If you’re not fond of receiving credit card offers, other “pre-qualified” credit solicitations, or my personal favorite, the Mortgage Trigger List calls, you can also opt out of prescreened credit offers.

If you visit https://www.optoutprescreen.com you can remove yourself (and only yourself, it’s personal info based, so every individual will have to do this on their own) from pre-screened credit offers for 5 years. If you print and mail the form, you can remove yourself forever. Make sure that you read the FAQ before you do this.

Of course, if you like having US Mail in your box every day, maybe this isn’t for you. But if you’re tired of hearing what an amazing offer you’re qualified for, this is how you cut down on the junk mail.

 

Do Not Call List

FHA vs Conventional Loans

Posted by: Greg Fischer Post date: December 13th, 2011

Chances are, if you’re looking for a fixed rate mortgage in New Hampshire, you may qualify for more than one type of loan. If you’re a first time homebuyer in particular, you may qualify for several. Finding the one that’s best suited for your needs may be more complicated than asking your neighbor what mortgage type they have.

Two of the most common mortgage loan types are FHA and Conventional. Both offer 30 year fixed rates, variable downpayment requirements, and can be obtained from most mortgage lenders. But there are a number of key differences that may make one type better for your situation than the other when buying a new home. Here are the highlights:

Conventional:

Can be obtained with as little as 3% downpayment with strict requirements

Private Mortgage Insurance (PMI ) is required with less than 20% equity, but may be financed, paid up front, or built into the interest rate.  Rate and availability is dependent on credit score.

May have fewer property requiremets

FHA

3.5% Downpayment – can be a gift from a family member

Relaxed credit requirements

Fewer cost adjustments for credit score, property type, Loan to Value

Condos need to be FHA approved, but can lend up to 96.5% without additional cost adjustments

FHA Mortgage insurance (MIP) is partially financed, and paid montly. Required for 60 months regardless of equity, but is not credit score dependent.

Why one versus the other?

In many cases, the cost adjustments on a conventional loan with a moderate credit score may make the price or rate higher than an FHA loan without the Loan Level Price Adjustments (LLPA’s). FHA is particularly well suited for people whose credit isn’t perfect, or have limited money down. Conventional pricing may be better for homes with equity, particularly if PMI isn’t required, and for those with at least 5% down and 720 or higher credit scores.

It always makes sense to compare both if you qualify. Shaking out the MI vs Cost vs Rate for both options takes a little time and understanding, but will help you arrive at the best mortgage for your new home.

 

Don’t Get Prequalified for a Loan Amount

Posted by: Greg Fischer Post date: November 14th, 2011

When you’re about to get serious about shopping for a new home, the common logic is to contact a mortgage lender, and provide some information about your income and credit in the hopes of learning what purchase price you can be qualified for. The problem with this model is that you aren’t qualifying for a principle loan amount – you’re qualifying for a monthly payment.

There are usually 2 numbers that come out of a pre-qualification: the maximum payment that your debt to income ratio can be approved, and the maximum payment that you can write a check for next month without having a small stroke. Sometimes this is the same number. Sometimes it isn’t.

Make sure that you know ahead of time what your “limit” is for monthly payment. Just because you can be approved for a $2000 a month mortgage bill doesn’t mean that you should look for the house that will cost you that much. If your budget and comfort limit is $1500, don’t shop for your new home at the maximum loan amount you qualify for.