Tag Archive for: borrowers

When You Should Drop Your Husband; Part II

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I am repeating this blog from several years ago because I forgot to include a MAJOR reason to drop your husband. The following text from an agent prompted my original blog, as it made for great blog fodder. “I received an offer on a property and it’s ‘wife only,’ stating ‘husband is starting a business and that’s why he isn’t on the loan.’ I didn’t just fall off the turnip truck. Does this mean the husband has bad credit and they are trying to qualify with just her, and is that an issue?”Read More

Buy Before You Sell – What Happens If Your Old House Does Not Sell?

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Our buy-before-sell niche has turned into a huge boon for our business – primarily because we offer so many options. I mention this from time to time because it surprised me so much; I did not anticipate this much demand. One of the things borrowers are more concerned about as of late though is this – what happens if their old home does not sell? As a quick review, buyers often want to buy a new home before selling their current home – so they do not risk ending up homeless and forced to put everything in storage and/or so they don’t have to make much less appealing offers that are contingent on the sale of their current home.Read More

Danger Of Waiting For Rates To Fall; Foreclosures Shoot Dangerously High; What’s A Recert of Value?; Actual DSCR Rates

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The 10-Year Treasury yield shot way up today – unexpectedly. The reasons? Higher oil prices sparking inflation fears, and a move into stocks and out of bonds (flight from “safety” into “risk assets”). I bring this up because we have well over 100 borrowers in our database who easily qualify for no-cost refinances that would save them thousands of dollars – but they don’t want to execute because they are convinced rates will fall further. Sigh…Read More

Can A Half-Completed Remodel Get Financing? Why Homes Were So Much Cheaper In 1950

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In 1950, the median home price was $89,300 (adjusted for inflation), and it was only 3x the average income. The median home price today is a whopping $430,000, and 7x the average income. BUT – an average new 1950 home was a 983-square-foot plywood box, with two tiny bedrooms, one bath, no AC, and a tiny garage (if you were lucky).Read More

10% Down For Newly 1099’d Buyers; Taking Title in LLC; Closing While On Maternity Leave

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99.9% of Americans have no idea how big deal this is. But the Non-QM (today’s quasi-subprime) space is getting brutally competitive now - and therefore far more flexible. For example, we now have a non-QM loan with four highly unusual characteristics that have not been seen since pre-2008.Read More

Difference Between Points, Discount Points, & Origination Fees; Slimiest Thing I’ve Seen

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This is the slimiest thing I’ve seen in a long time. We quote most of our loans as “no points,” meaning that we truly don’t charge any points or discount points of any kind. But a borrower recently left us for another lender (temporarily) that offered a 1/8% lower rate and “no points” too. The problem was that the lender was also charging $10,000 in “origination fees,” and $10,000 MORE than what we were charging. Fortunately, the borrower shared his Loan Estimate with us, and we were able to illuminate the slime-factor and bring the borrower back to JVM.Read More

BEWARE of 11th Hour Fraud/Credit/Employment Check

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Today’s blog is about one of the biggest and costliest mistakes we see buyers make, which kills deals and sometimes puts very large earnest money deposits at risk. Borrowers mistakenly believe that once their loan is fully underwritten, with all conditions satisfied or easily satisfiable - they can stop worrying altogether about making sure they remain qualified for the remaining few days or weeks until their loan closes.Read More

Hard Credit Pulls, Soft Credit Pulls – Do We Need to Care?

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Given that it was about 25 years before credit scores were widely used, I’ve always thought it was remarkably prescient – because most borrowers care far too much about credit pulls and the impact on their scores.Read More

Why We Can’t Use Capital Gains Income To Qualify; Income’s Gotta Recur!

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Borrower: “Jay, why the hell can’t I qualify for a mortgage when I made $900,000 last year? You guys are pathetic!” Jay: “Well, Bob, $800,000 of your income came from the sale of the land you inherited from your grandma, and the other $100,000 came from stock dividends – but you just sold your stock to use for your down payment.Read More

Shockingly Large Percentage of People LIE About Owner Occupancy

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Whenever the real estate market gets hot, investors clamor into the market – further driving up prices. We saw this play out in spades over the last five years, when Wall Street jumped into the game, and when social media influencers and the “how-to-get-rich-in-real-estate” bros started to brag about their dubious gains and sell dubious courses with a fervor not seen since 2006.Read More

Why We Love Private Mortgage Insurance (PMI) Now

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Bojack Horseman, FHA and PMI all cultivated horrible reputations in the 1990s. Bojack fostered his young co-star’s drug addiction, and should not be forgiven. FHA used to require full pest reports and clearances with every transaction. That requirement is now long gone, but it stigmatizes FHA to this day.Read More

Shocking: Real Estate Agents Are Acting As Loan Officers Too

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One of the biggest and most unexpected boosts to my business came from a competitor: E-Loan. Founded in the late 1990s, they were the first major entity to embrace online mortgage lending.Read More

What Makes the Commoditization Of Mortgages Terrifying? Why Consumers Think Mortgages Are Like Corn, Oil, Soybeans & Copper; Why It Matters

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The perceived commoditization of mortgages terrifies mortgage lenders for several reasons: low margins, high-cost structures, the necessity of high-touch service, just to name a few, so what's a lender to do? Step one, stop whining! It's our job to continue to cut costs while still providing stellar service and educating agents and buyers alike that mortgages are not commodities.Read More

Importance of Post Close Survey To All Clients

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At JVM Lending, we send surveys to every borrower after closing to gain insight, improve our service, and proactively manage feedback.Read More