Loans – Sandy Gadow

Rejected for a Mortgage? A Community Bank May Be a Viable Option

If you’ve been turned down for a mortgage by a mainstream bank — as many people have with the much-stricter rules now governing credit scores, income requirements and loan-to-debt ratios — a community bank may be a good option for you.

The new Qualified Mortgage (QM) guidelines, which the federal government imposed on lenders in January, tightened already stringent rules introduced by the Dodd-Frank law and Consumer Financial Protection Bureau.

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How Should I Go About Shopping for a Loan?

Consider banks, savings and loan offices and loan brokers: Find out what types of loans are available and ask about interest rates and loan fees. Find out how quickly the lender can make an appraisal of the property. Prepare a … Continue reading →

Why Your Home Appraisal May Be Lower Than You Think — and What You Can Do About It

With home prices on the rise, it’s easy to assume that property appraisal levels will increase accordingly. But that isn’t always the case. Quicken Loans recently found in its so-called Home Price Perception Index that home values assigned by appraisers … Continue reading →

Know Before You Owe Disclosure Forms

(Most states require sellers to fill out a disclosure form or disclose material facts about the property. To find your state’s law, speak to your real estate agent or state regulatory agency. You can find the disclosure requirements in your … Continue reading →

When should you consider seller financing?

Home sellers unable to find a qualified buyer may want to consider seller financing. When the seller acts as the bank, there are no typical lender costs such as loan origination fees, discount points, mortgage insurance premiums, processing fees, or … Continue reading →

What is PMI insurance?

PMI or Private Mortgage Insurance insures lenders against losses when they have to foreclose and can only sell their foreclosure properties for less than the loan balances. Most lenders now require PMI whenever they lend more than 80% of the … Continue reading →

Mortgage Closing Pain Points: What You Can Do?

A recent study by the Consumer Financial Protection Bureau reported the results of a year-long study to identify the most troublesome aspects of a loan closing. The CFPB, in an effort to improve the mortgage closing process for borrowers, asked … Continue reading →

What Is the Best Way to Improve My Credit Score?

While there is no “best” way to improve your credit score, as each of the three main credit reporting bureaus may give a higher value to one type of action over another, there are several steps you can take, which … Continue reading →

Is It Time to Consider a Short Sale?

Lona Hamilton has been struggling to make her mortgage payments for the last year and a half. She has used up all her savings, borrowed from friends and family, and now wonders if she shouldn’t consider putting up her home … Continue reading →

Why do I need a survey?

While the plat map attached to your preliminary title report will show the boundaries of the property, it will not show where the house is located on the property or whether there are any encroachments on the property (such as … Continue reading →

Can I Modify My Existing Mortgage Instead of Refinancing?

Dear Sandy, I chose an adjustable rate mortgage in 2003, interest only, based on the LIBOR index. The rate has now risen to over 7.5% so I would like to refinance it to get a better interest rate. My neighbor … Continue reading →

How Much Can I Borrow?

Depending on your annual income, cash reserves, credit worthiness, and the appraised value of the property, you may be able to borrow up to 100% of the value of the home. A typical home mortgage is 80% of the home’s … Continue reading →

What happens to the mortgage if I inherit the property?

If you inherit a property in which there is a mortgage, under the federal law called the Garn-St. Germain Act, you are entitled to take over payments on the existing mortgage. This act prevents a lender from enforcing the “due … Continue reading →

How Do I Get a Copy of My Credit Report?

If you have been denied credit in the past 30 days, you have the right to request a free copy of your credit report. Beginning December 1, 2004 in the Western states, and nationwide in 2005, the three main credit … Continue reading →

I Am a First time Homebuyer. Is There a Special Loan for Me?

Many lenders participate in the Community Home Buyer’s Program, sponsored by Fannie Mae, which is specifically tailored for the first-time homebuyer. This type of loan provides financing for low-to moderate-income buyers who might not qualify for a loan on traditional … Continue reading →

How You Close on a Mortgage Is Your Call

By Sandy Gadow Special to The Washington Post As the record-setting volume of home purchases and mortgage refinancing continues, many borrowers are becoming concerned about how to make settlement go as smoothly as possible. The right choice of a settlement … Continue reading →

What Are Fannie Mae Guidelines and Will I Qualify?

Your lender or mortgage broker may refer to “Fannie Mae Guidelines” when asking you for documentation supporting your loan application. They may have explained to you that you must qualify for the loan under those guidelines. What are they and … Continue reading →

Do I Need a New Title Policy When I Refinance My Mortgage?

You will not be required to obtain a new Owner’s Title policy when you refinance your mortgage, but you will be required to obtain a new “Lender’s policy” of title insurance, naming the lender as the insured. The Lender’s Policy … Continue reading →

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