Posts

Closing Your Home Loan In Five Easy Steps

Throughout the homebuying process, borrowers often have questions about the closing process for their home loan. There are quite a few steps to this process, and we understand that it can lead to confusion and frustration if buyers are unaware of the process. To help alleviate some of the confusion, we’ve outlined the closing process […]Read More

How Monkeys Close Loans in 10 Days; Purchases? Not So Much…

30-MINUTE LOANS Closing a conforming (Fannie/Freddie) refinance for a W2’d employee with good credit can take less than 30 minutes of effort on the part of a lender. This is because lenders can now use artificial intelligence to underwrite clean files, and verifications of employment and assets are pulled automatically via the lender’s loan application […]Read More

Rates Have Not Been This High Since… 2021

RATES HAVE NOT BEEN THIS HIGH SINCE 2021! I thought I would put interest rates in perspective again, given that they have risen so much (1/4% to 3/8%) since last summer and that there is so much concern! But – they are still slightly lower than where they were on April 1st of THIS YEAR! […]Read More

Do Some Loans And Lenders Require More Work From Borrowers?

MASSIVE TECH SPEND – FOR BORROWERS We spend about $750,000 per year on various technology applications with the primary goal of making the mortgage process as simple and as efficient as possible for our clients. This technology includes our point of sale/application system (Blend), our elaborate CRM buildout (Salesforce), our electronic document reading systems (Candor, […]Read More

Correlating to Borrower With Lower Score; Paying Over Appraised Value; Not Referencing Inspections

Here are a few quick reminders. CORRELATING TO BORROWER WITH THE LOWEST CREDIT SCORE We received negative feedback from a frustrated borrower last week b/c we correlated our interest rate quote to her husband’s lower credit score (low 600s) when her score was in the 800s. We of course had no choice, as almost all […]Read More

JVM Is A “Direct Lender” – Does It Matter?

A few weeks ago, we had an appraisal come in under contract price for the usual reason – the total absence of bracketing comparable sales in a very hot market. Despite the lack of comps, the borrowers were upset with JVM and wanted to take their loan to another loan officer who had explained that […]Read More

Protect Your Local Lender :) (Even If It Is Not Us)

I remember the vicious phone call vividly. I took BART into the City on a Friday night to meet my wife Heejin for a date and was climbing the stairs out of Embarcadero station when I received a call from the angriest borrower I had ever dealt with. She was spitting nails, vitriol and profanity […]Read More

Beyoncé & Jay-Z’s Mega Mortgage, Celebrities Who Went Broke; Why We Underwrite

What do Jay-Z, Beyoncé, and billionaire hedge fund managers have in common besides enormous amounts of money? Answer: Enormous Mortgages Jay-Z and Beyoncé just bought a house for $88 million and financed $53 million because they were tight on cash :). Actually, their financial advisor probably told them it was smart to leverage themselves at […]Read More

The Mortgage Underwriting Process Explained

The Underwriting Process Most people are familiar with the beginning of the mortgage process – getting pre-approved by a mortgage lender to apply for a home loan, and the end – funding the loan and moving into their dream home. However, the middle can get a little murky if you’re not familiar with the mortgage […]Read More

Types of Loans: FHA, VA, Gov’t, Conventional, Conforming, Jumbo, etc.

There is often a lot of confusion about the names and types of mortgages available in the market place. Here is some general information to address some of the confusion. I. “Government Loans” are mortgages that are either insured or guaranteed by the government or a government agency. They include FHA, VA and USDA loans. […]Read More

Changing Close of Escrow Date – Easier Said Than Done

When we have long close of escrows, we often get loan documents to title days or even weeks before the close of escrow. Sometimes realtors then want to move up the slated close of escrow date. This, however, is much easier said than done. All of our loan documents and approvals are based on a […]Read More

Loans = Compliance, Box-Checking, Salability; Not Logic Ever

We have a jumbo borrower right now who is pulling his hair out b/c he is extremely well-qualified but still getting conditioned to death by an underwriter. His file is very complex, as he has assets of all types and multiple income sources. He was convinced the underwriter and investor did not want to lend […]Read More

Cannot Give Value to Un-Permitted Space, In Most Cases

Most lenders allow space built without permits, as long as it was constructed properly and there are no health or safety issues, such as the presence of a stove. Appraisers can tell when there is un-permitted space either by appearance (garage conversion) or when the measured gross living area does not match the county records. […]Read More

Salary + Commission: Need History of Commissions

We have a borrower who averaged $160,000 over the last two years in a commission sales job. He just started a new job with an $85,000 base salary, but with much more commission potential. We may be able to use the average of his previous years’ commissions even though they were earned at a different […]Read More