Archive for: November 2006

A direct lender funds their own loans. Direct loans can be offered by big lenders to smaller institutions.  Banks and savings and loans have deposits that they can fund loans with.  Though most times they will usually have warehouse lines of …

Portfolio lenders are savings and loan institutions and sometimes banks. They usually originate loans (adjustable rate loans) for their own portfolio, not for resale in the secondary market. 

It can be easier to qualify for a portfolio loan then to qualify for …

Is there a “best” lender?

Probably and probably not.  Everyone has a different opinion, your realtor used to recommend portfolio lenders, now they use mortgage bankers and mortgage brokers.  A realtor will most likely steer you in the direction of a …

So we talked about Ginnie Mae, Fannie Mae and Freddie Mac.  Well, once they purchase the “pools” they break them down into smaller ownership parcels.  These are called “mortgage backed securities”. Each security represents a small ownership interest in the …

You talk to a lender and apply for the loan.  The lender does all the processing for you and you move in to your new home.  You make the payments to the company who originated the loan or your loan …

In the old days you walked downtown to your nearest savings and loan bank and if the bank had extra money hanging around and considered you a good credit risk they would lend you their money.

As you can see it …

If you plan on using stock etc. for your down payment you will need to provide the lender with proof of your stock.  You can provide them with the statements you receive from the brokerage firm.  You will probably need …

Was this title long enough for you?

Can family members be of assistance? sure! but - your lender requires it to be in the form of a “gift”.  Your lender does not want to know that you need to pay this …

OK just so you know, you aren’t allowed to borrow money to come up with your down payment.  Except - if the loan will be secured by some other asset. 

What do I mean - if you take out a home …

From the post before, let the lender know you are shopping around for different interest rates, have all your information available.  Remember in the past we talked about “points”?  If you pay one point on a 30 year loan and the …