PSA. If you own your own house, refi now!

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hunneman
Posts: 85
Joined: Dec 19, 2016 10:21 PM
Location: Winchester, MA
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Re: PSA. If you own your own house, refi now!

Post by hunneman »

For being a mortgage Broker for over 18 years and 15 years of owning a mortgage company, there brokers that should not be in the business.
As in every line of work you have the goods. so-so to bad workers.

The Mortgage loan originator is licensed vs. Loan officer at a lending institution or local bank they are registered, no licensing requirements.( glorified order takers) Once they take your information they have no control over your file, it goes to a processor, and they can't talk to the underwriters.. Most of them can't even give you your fico score or credit report because of there status.

Mortgage Brokers will pull your credit and run it thru the underwriting engine from Fannie Mae or Freddie Mac, at this point you know if you get an approve/eligible or approved accept. Once obtained a certificate it gets assigned to a lender with favorable rates or program for (self employed, social security. trust/ dividend income). If you submit a complete package the UW validates what you submit and commits the loan then title company can schedule closing. :alright:
But if you don't sent in a complete file. if you are missing title search or payoff or insurance binder, these can increase the delay because once it is reviewed then it goes back of the line of the queue, this can take additional 3 to 4 weeks.

if you went thru a broker the requirements are as follows :
Most recent paystub
W2 for 2019 ( if you had the same job for same 2 years. if not then 2018 is required as well)
1040 2 years for self employed. (for self employed in same business for over 5 years only 1 year 1040, yes only one year!)
copy of ID
if you live in a zip code or county that has sufficient sales or comparable then the underwriting engine will give you a PIW property inspection waiver ( no appraisal required even if it is a cash-out transaction.) if not then an appraisal is required.
Bank statements ( only if the findings from Fannie or Freddie require reserves) no reserves no bank statements needed.
Insurance policy # in order to get a new binder for coverage
Payoff for current lender easily obtainable from the website
Title commitment with CPL and wiring instructions from title company

If you own a second home please include:
mortgage statement
tax bill
insurance bill

If you own rental property and want to use rental income:
schedule E from 1040
Mortgage statement
tax bill
insurance bill
any HOA dues

Ask your broker to read the findings this with help you gather what you need to have a less painful process.
In addition ask your mortgage broker which account executive he/she has the best relationship with, because that helps getting in touch with the right person if there is a delay.

if you want to calculate your own debt to income ratio before contacting a broker,
add up all you debt obligations
Credit card use minimum payment monthly, same for student loan, mortgage payments divide by you total gross income
if you are 45% DTI or less that great :ohyeah: if you are 45% or greater then reserves are to get to max 49.9%DTI :confused:

if anyone needs help with refinancing in MA or NH, my website is in my profile..

Rates are low it does make sense to refi..

Hope this helps

Happy New Year!
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