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REMINDER – Temporary Authority to Operate Takes Effect November 24, 2019

REMINDER – Temporary Authority to Operate Takes Effect November 24, 2019

Starting November 24, federally registered mortgage loan originators (MLOs) seeking state licensure, and state-licensed MLOs seeking licensure in another state will be able to continue originating loans for 120 days, while completing any state-specific requirements for licensure. This streamlined license application process known as Temporary Authority (TA) was signed into law May 24, 2018, as a new provision under the SAFE Act of 2008.

NMLS has been enhanced to support TA. New functionality will help state regulators determine if an individual MLO qualifies for TA and will help manage this new, streamlined licensing process. The system also includes new functionality for sponsoring companies to identify an individual MLO’s Worker Classification, one of the first indicators that will be used to determine if an MLO qualifies for TA.

We encourage you to visit the TA web page on the NMLS Resource Center to learn more about TA. You will find:

  • A demo that walks companies through the application workflow process created in NMLS for TA
  • New NMLS policies for TA
  • Tips and resources that provide detailed overviews of new functionality in NMLS for TA and how it applies to companies and MLOs

If you have questions about TA, email TA@csbs.org, or contact the NMLS Call Center at 855-NMLS-123 (855-665-7123).
You may experience higher than usual wait times when contacting the NMLS Call Center because we are currently in the annual renewal period. The best times to call are early in the morning (9:00 – 10:00 a.m. ET) and in the evening (after 5:00 p.m. ET).

Contact us today at 800-535-0270 for more information or email us here.

Self-Employed Mortgage For An Investment Property

Self-Employed Mortgage For An Investment Property

The mortgage application process never has a one style fits all approach. Each individual’s employment status, credit rating, and so many other factors figure into the route of applying for financing to secure a home. Such was the case for a recent client of Mortgage Loan Officer Orlando Jarrin.

A currently self-employed homeowner seeking to acquire an additional residential investment property was turned down by three different banks. There are many reasons why a mortgage company or bank can turn anyone down when they’re applying for a mortgage loan, but a clerical error shouldn’t be one of those reasons.

With mortgage loan officer Orlando’s expertise and vigilance in finding the appropriate mortgage product for the client, he was able to get his client qualified to obtain a loan via the bank statement program. This Non-Qualifying Mortgage (Non-QM) home loan was made available on behalf of the client after discovering that a previous bank’s financial miscalculation was the reason the original mortgage application was denied.

By matching his client with the Bank Statement Homebuyer program, Orlando secured a home loan for that particular residential investment property of 580,000 thousand dollars. Perseverance and dedication to helping each client is the cornerstone of Orlando’s customer service approach to every potential client seeking a mortgage from MortgageDepot.

If you’re interested in buying your first or second home, an investment property or space for your commercial business, contact MortgageDepot today at 800-535-0270 or visit mortgagedepot.com

When is the VA Loan not my best option?

When is the VA Loan not my best option?

For most borrowers, the VA loan represents the best available option for a home refinance or purchase. The terms of the loan, the minimal requirements and guidelines and especially the no money down option make the VA loan the perfect choice for almost every military borrower. The whole premise behind the loan program is to nearly guarantee that a veteran of the military or a surviving spouse have the availability to purchase a home. There is really no other alternative if you qualify for some type of VA financing.

One Scenario When VA Financing is not the Best Option

The only scenario out there for veterans and surviving spouses who want to choose a conventional loan over VA financing is cash reserves. If the veteran or spouse has more than enough reserves to cover the 20 percent down payment requirement, then it is possible to obtain a lower rate than you would get from the VA. However, it is still probably not the correct alternative to VA financing. The borrower can hang on to their cash reserves, still receive a low interest rate and use the reserves to maintain their new home. The benefits from VA financing are far greater than any type of conventional financing. That is why military borrowers should always consider going the VA for any type of home purchase or refinance.

Finding Help With MortgageDepot

If you still feel like exploring other options aside from the VA, then MortgageDepot can help. We are a well-respected team of mortgage experts that guide you through the entire process. We help you make the correct choice on any type of mortgage financing, whether it is conventional or through the VA. Give us a call today and find your best available option.

Contact us today at 800-535-0270 for more information or email us here.

What Borrowers Need To Know About Mortgage Closing Costs

What Borrowers Need To Know About Mortgage Closing Costs

Whether buying a home or refinancing an existing one, forgetting about mortgage closing costs can leave borrowers short of the funds they need. At MortgageDepot, our lending professionals make it a point to explain the expenses associated with mortgage financing. MortgageDepot is a mortgage broker company working on behalf of borrowers to find lenders offering the best financing terms and convenient options for paying closing costs.

Typical closing costs

A good real estate agent usually reviews with buyers the expenses, referred to as “closing costs,” that must be paid over and above the selling price of a home. Typical closing costs include the following:

  • Attorney legal fees
  • Title search and title insurance premium
  • Real estate taxes
  • Homeowners insurance
  • State and local transfer taxes and recording fees

Individuals financing the purchase of a home or refinancing a mortgage on an existing property have additional expenses charged by the lender or by third-party providers, such as the legal fees of the lawyer working on behalf of the lender. Other mortgage-related closing costs include the following:

  • Underwriting fee
  • Processing fee
  • Origination fee
  • Mortgage title insurance premium and title company expenses
  • State and local recording fees for mortgage documents
  • Appraisal fee
  • Credit search
  • Notary fees

Most lenders also require borrowers to prepay a portion of the real estate taxes and homeowners insurance to establish an escrow account from which the lender can pay future bills. These prepaid items add to the closing costs.

Even though real estate agents do their best to anticipate the money a buyer needs in order to complete the purchase of a home, it is difficult for an agent to offer an accurate estimate of mortgage closing costs without knowing what expenses a particular lender may charge. Origination fees, administration expenses and other costs passed on to borrowers may differ from one lender to another. This is why our loan officers tailor their review of closing costs to the expenses charged by the specific lenders to which our borrowers submit applications for financing.

Options available to borrower for paying closing costs

Closing costs related to financing the purchase of a home may pose a challenge for borrowers who struggled to save enough money to meet the down payment requirements. We work with lenders offering the following options for borrowers unable to pay closing costs:

  • Lender credits
  • Seller credit toward closing costs
  • Incorporate closing costs into the mortgage

Lenders offering a credit toward closing costs provide a viable alternative for borrowers lacking the funds to make an out-of-pocket payment. The higher interest rate charged by lenders offering this option may not deter borrowers who plan to refinance the loan or sell the property and pay off the debt within a relatively short time.

Buyers need to be careful when purchasing a home with a seller credit or seller concession toward closing costs. A seller credit toward closing costs may turn out to be nothing more than an increase in the selling price of the property in order to allow the buyer to borrower more to cover closing costs.

Incorporating closing costs into a mortgage may offer a solution for a borrower short of funds, but it must be done with care. Increasing the amount of the loan affects the loan-to-value ratio and could require the payment of private mortgage insurance. It could also affect the borrower’s ability to qualify for the loan by increasing the monthly mortgage payments.

Get trusted advice from a mortgage professional

Our loan officers have the knowledge and experience to provide accurate information about closing costs and available options for borrowers in need of assistance in order to pay them.

Contact us today at 800-535-0270 for more information or email us here.

Flipped Contract of Sale

Flipped Contract of Sale

MortgageDepot prides itself on providing our clients with the very best mortgage options available to them that are best suited to their needs. Recently Mortgage Loan Officer Yury Gohkberg, with the assistance of processor Irina O., closed a mortgage for a family that wanted to remain in their swiftly gentrifying community of Bedford Stuyvesant, Brooklyn, New York. Securing financing for the family’s home purchase became a dedicated team effort comprised of the Mortgage Loan Officer, underwriter, bank attorney, and processor, all working together.

With developers looking to stake a claim anywhere in the Bed-Stuy/Stuyvesant Heights, Brooklyn community, the developer made an offer of one million dollars to an existing owner of a two-family home directly attached to another adjacent two-family home. The owner’s house has a value of 1.3 million dollars. The current homeowner refused the developer’s offer knowing that it would radically alter the street where they reside. The developer made his intention clear to demolish the two adjacent homes to build a contemporary multi-dwelling, high rise building in the middle of a block filled with classic limestone brownstones and other low profile residences.

But, in a David vs. Goliath turn of events, the homeowner made an offer of a buy-out to the developer flipping the transaction on its head! The developer sold the contract of the adjacent two-family home to the homeowner at a loss! And this is where the efforts of the “team” began. Because of the homeowner having no down payment assets, refinancing via the home equity fund was used as the down payment.

The present value (equity) of the owner’s occupied home served as a means for the bank to offer them a cross-collateral program. The home equity functioned as payment of $600,000 for the property by using its present value to purchase the home next door. Ultimately, the refinancing for the property next door was secured at 4.375% with a 5/1 year ARM (adjustable-rate mortgage).

MortgageDepot values community and the people that live in those communities. That is our sole motivation whenever we facilitate a home purchase for each individual seeking to engage our services.

Contact MortgageDepot today at 800-535-0270 to finance the home of your dreams in a community that you love.

What is a difference between eligibility and pre-qualification?

What is a difference between eligibility and pre-qualification?

Many veterans who are looking to qualify for a VA Loan often confuse eligibility and pre-qualification. It is important to keep in mind that not every veteran who is eligible for a VA Loan can secure a loan. Just because you are eligible for a VA Loan does not give a guaranteed approval. There are certain underwriting guidelines that need fulfilling before anyone is pre-qualified for a loan. There is a step that goes a little further than pre-qualification, which is outright pre-approval. When you are pre-approved, you are basically guaranteed that you qualify for one or more VA Loan Programs.

The Difference Between Pre-Qualification and Pre-Approval in Action

Based on the amount of credit information you provide the lender who provides a VA Loan, they are able to pre-qualify you in the form of an estimate that shows how much you can receive from a VA Loan. Eligibility means you meet the initial qualifications for a specific type of VA Loan, but again it is not a guarantee of approval. Pre-approval assures that the bank is ready to offer you some type of VA financing. The financing is often used for a new home purchase or refinance of an existing VA Loan. The difference between each term is quite simple and helps guide you through the VA Loan process.

Using MortgageDepot for your VA Mortgage

If you are struggling with the entire process, then we can help. We have a team of mortgage specialists who work exclusively with VA and FHA loans in the New York State area. We guide you throughout the entire process which requires very little effort on your part. If you want to simplify the process as much as possible, then you certainly need to contact us.

Contact us today at 800-535-0270 for more information or email us here.

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