What is an indian land lease?
Indian land leases are unique in only a few markets in the U.S. Essentially, you own the structure and lease the land on which it stands for only the duration of the lease. In the Palm Springs real estate market, an indian land lease on the Aqua Caliente Indian Reservation is a contract between the […]
What are correspondent lenders?
A correspondent lender is one who originates and funds a mortgage, but then sells it to Fannie Mae or Freddie Mac or a government entity like the FHA or VA. Correspondent lending helps alleviate the problems inherent in portfolio mortgage lending. With a portfolio lender, they end up keeping the mortgage they originated for up […]
What are lava zones? If you’re in Hawaii pay attention.
Lava zones can play a role in whether you can get a mortgage. They relate specifically to areas designated by the U.S. Geological Survey for the island of Hawaii. First created in 1974 and then revised in 1992, lava zones are the associated risk from the five volcanoes that comprise the island of Hawaii. There […]
What is an Appraisal Waiver or PIW?
Often times a lender will grant an appraisal waiver or PIW as it is also known, property inspection waiver, if the home was recently appraised, usually within the last year, and there have been no significant market changes. These waivers are generated by lenders that use the automated underwriting systems of Fannie Mae and Freddie […]
What is a Certification of Trust?
A Certification of Trust is a legal document that can be used to certify both the existence of a Trust as well as prove the Trustee’s legal authority to act. This document is basically the outline of your Trust that highlights all the important information. Essentially six elements are highlighted: 1) name of trust and […]
What is a 2-1 Buydown?
A 2-1 buydown is a loan that has an interest rate 2% points lower the first year and 1% lower the second year and then adjusts to the full interest rate in year three. Therefore, it’s critical to remember that this buydown of the interest rate is a temporary and does not permanently reduce your […]
What is inflation?
Simply put, inflation is a rise in prices which equates to a decline in your purchasing power of goods and services over time. In the US the most commonly used indexes to track inflation are the Consumer Price Index and the Wholesale Price Index. Inflation occurs because a country’s money supply is being increased. This […]
What is flood insurance and do I need it?
Flood insurance covers losses to your property directly caused by flooding, meaning an excess of water on land that is normally dry affecting two or more acres of land or two or more properties. The thing to remember is that no home is 100% safe from potential flooding. One inch of water in a home […]
What are the typical closing costs I will see on my loan?
Closing costs are the associated fees with a mortgage when buying or refinancing a property. Discount points used to adjust your interest rate down are one component of closing costs. Then there are lender charges which typically include a processing and underwriting fee. Then there are services you cannot shop for. These include your appraisal […]
What constitutes a loan application? P-E-N-C-I-L
There are six pieces of information that consitute a loan application and thus trigger your loan officer to submit a Loan Estimate and initial disclosures to you. Those pieces can be thought of as the acronym PENCIL. PENCIL stands for (1) P – Property Address (2) E – Estimated Value (3) N – Name (4) […]