The New Rules of Mortgage Lending

I found very helpful article on  Yahoo! Finance  about mortgage changes: 

• Paying Up-Front Points
• Making More Than the Minimum Down Payment
• Locking in the Mortgage Rate

 by Les Christie
Friday, February 6, 2009

Shopping for a home loan? Things have changed — here’s what you need to consider.

If you’re shopping for a mortgage these days, it’s a whole new world out there.

“There have been a huge number of changes over the past few years in mortgage borrowing,” said Gibran Nicholas, founder of the CMPS Institute, which trains and certifies mortgage advisors.

Of course, many of the subprime loans that helped fuel the housing boom — those that didn’t require borrowers to show any proof of income, or that let homeowners make minimum payments — are simply no longer available.

But even buyers looking for a traditional mortgage are now faced with different factors to consider.

Here is what you need to know:  Read full article 

 

Read Closing Costs vs. No Closing Costs and What Fees are Included in Closing Costs? Can You Avoid Them?

Mortgage Industry During Financial Crisis

The current global financial crisis, credit meltdown, housing crisis — the worst economic situation that our country is facing since the great depression.  Most people do not understand exactly what happened and what’s going on. Everyone seems to be blaming someone – Wall Street, the government, banks…. Should we point a finger at ourselves also? Absolutely! And this is your responsibility to choose the right broker and understand the mortgage program you agree to take. People spend more time picking the color of new washing machine than on one of the most important financial decisions such as a real-estate investment.
Most people have no idea or a vague idea of how the mortgage industry works.  Knowledge is a key to figure a way out of the mess.
The mortgage industry is very challenging and the market is constantly changing. Old rules don’t work anymore. Many mortgage programs were eliminated. Guidelines are changing almost everyday and became more strict and demanding.  Does it mean we can not obtain a mortgage? No. Banks are still lending. Despite common disbelieve the following programs still exist:  95% Loan-to-Value ratio, Interest Only refinance, 1 day off MLS refinance, no hit for cash-out refinance, no hit for Jumbo Loans up to 750K, no mortgage insurance on loans over 80% Loan-to-Value, 1st position HELOC up to 350K. Whether you are refinancing or ready to get into a new house, you must be aware of new rules and current mortgage options.

Our goal is to make sense of the uncertainty in today’s mortgage industry. We will provide you with mortgage news, current rates, new rules and guidelines. We will explain the requirements and how to prepare for refinance or purchase of a property, how to improve your credit history, how to get better rates and what is the fair amount of closing cost.  Our approach is to educate you about your largest financial transaction. We will share with you our knowledge, and we hope you will benefit from our blog.

YOUR SUCCESS IS OUR PROFESSIONAL PRIDE
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