Stewart Brown Jr – Mortgage Loan Originator – Purchase or Refinance
FAQ
The short answer is yes. If you are planning on obtaining mortgage financing you will need to get an appraisal for all loan types including: conventional, FHA, USDA, VA, jumbo and non-qm. For purchases, lenders usually require appraisals to ensure that the estimated value of the property matches the contract price. This is extremely important for lenders because the property represents the collateral for their mortgage loan, and lenders need to ensure that there is a sufficient equity cushion to keep the mortgage within acceptable risk parameters. However, these days appraisal waivers have become a common thing and can come up if when your loan is going through an automated underwriting system.
Yes, lenders will typically require that you provide bank statements for the last two months for any account where the funds will be used to cover down payment or closing costs. They ask for two months because they want to see if you received any large deposits in the form of a loan or gift from someone in order to qualify for a mortgage. But in addition to basic checking and savings accounts, your lender will probably want to see all your asset accounts including investment and retirement accounts.
Yes. Loans closed through the remote online notarization process can include either wet-ink signed promissory Notes (i.e. non-eMortgages) or electronically signed Notes (i.e. eMortgages). Sellers can deliver loans with electronically signed Notes, only if they are approved to deliver eMortgages. And with the E-SIGN Act, you can close on your home using DocuSign or other electronic signature software. But some states require a wet signature on certain documents.
To get pre-approved first contact a licensed mortgage loan originator. Your loan officer will then take an application and request certain information from you. This information includes your name, current address, current employment information, and current asset information. They will request your social security number and birthdate in order to run your credit report through all three bureaus. You will then be requested to provide supporting documentation to prove the information you verbally gave your loan officer is insync. Once your loan officer verifies these documents, runs your file through the automated underwriting system and determines the appropriate loan program they can provide you a written pre-approval.
The higher your credit score the more confidence your lender has in your ability and willingness to make your monthly payments on time. A higher score will also enable you to receive a lower mortgage interest rate and lower fees. Additionally, some lenders may reduce their down payment requirements if you have a high credit score.
The minimum down payment required varies from loan program to loan program. For conventional, it is 3% but you will need to meet certain income restrictions otherwise the standard is 5%. For FHA, the minimum is 3.5%. For VA and USDA, the minimum down payment is 0%.
Loan servicing refers to the administrative aspects of a mortgage loan from the time of funding until the borrower pays off the loan. Loan servicing includes providing monthly statements to the borrower(s), collecting monthly payments from the borrower(s), maintaining records of payments and balances, collecting and paying taxes and insurance (if managing funds in an escrow or impound account), remitting funds to the note holder, and following up on any late payments and delinquencies.
Yes you can still qualify. If you are on permanent disability the income can be counted towards qualification.
Proof of permanency including a letter from a physician, government paperwork, or the institution who is issuing the disability checks will need to be provided. If the disability is temporary then the income cannot be counted. The basic rule in lending is that income must have a two year look back and three year look forward.
Yes you can. You don’t have to be a U.S. citizen, but you must be a legal resident or on a valid visa.
Please note that some visas, such as a diplomat’s visa are not eligible.
Yes. A lender cannot discriminate against a borrower because they are no longer working. However, you still have to qualify for the mortgage based on your credit, income and assets. All permanent retirement plans, annuities, social security, pensions, etc. can be counted as income with the proper documentation. For example, an award letter and proof of receipt of the retirement income must be demonstrated.
If you are self employed it’s important to understand that getting a mortgage loan will be much harder than a W-2 employee who can document several years of consistent income. However, many self-employed borrowers receive mortgage loans. There is just a higher level of scrutiny and greater documentation requirements in order to underwrite the loan.
The short answer is yes. Most lenders generate loans and then immediately sell those loans to secondary market investors, such as Fannie Mae and Freddie Mac. In order to protect their security interest in the loan, these government sponsored entities require title insurance coverage. Even those lenders who end up keeping original loans in their portfolio typically get a lender’s title insurance policy to protect their investment against title related defects. In regards to escrow, this service is crucial in a real estate transaction in order to protect both buyer and seller. Escrow ensures that both parties follow through on their obligations as spelled out in their residential purchase agreement.
Deciding whether to pay points to lower your interest rate is a decision that’s made on a case by case basis. It’s heavily dependent on your personal situation along with what you think will happen with interest rates during the time you hold your loan. With that being said it can be a great strategy. Lowering your rate even just 25 basis points (0.25%) could save you tens of thousands over the life of the loan. But there is a catch. You will have to keep your mortgage long enough for the monthly savings to cancel out or breakeven with the cost of buying points. Fortunately, the math is fairly simple to determine this. Your loan officer can help you find out if points are worth it in just a few minutes.
Mortgage points are essentially a form of prepaid interest that you can choose to pay up front on a mortgage loan in exchange for a reduced interest rate and lower monthly payment (a practice known as “buying down” your interest rate). In some cases, a lender will offer you the option to pay points along with your closing costs.
Typical closing costs usually average about 3% – 6% of the sales price of your home. These costs include items such as appraisal fee, application fee, notary fee, prepaid interest, recording fees, credit report fee, processing and underwriting fees, title examination fee, homeowner’s insurance premiums, discount points, pro-rated property taxes, title insurance for your lender, escrow and closing fee, transfer tax fees, and HOA fees if applicable.
You can dramatically improve your credit score by most importantly paying all debt obligation on time and making sure you have no late payments. Furthermore, consistently checking your credit reports for any errors or changes with all three bureaus in crucial. Additionally, keeping old accounts open, keeping your credit utilization percent low, and limiting the number of new accounts being open will all help you improve your score.
A mortgage payment will always include principal and interest. If you elected or were required to have an escrow or impound account than a reserve amount for property taxes and homeowner’s insurance will be included in your mortgage payment as well. Separately, depending where you live you might be in a homeowner’s association. In that case, you will also have HOA dues.
On your closing day, ownership of the property is transferred from seller to buyer. This day consists of transferring funds from escrow, providing mortgage and title fees, and updating the deed of the house to the buyer’s name. This is the last step in buying and financing a home.
80-10-10 mortgage financing is a combination of two mortgages used to purchase a home in addition to a 10% down payment. These loans are also known as piggyback mortgages and are broken down as follows: The first loan is a traditional mortgage that covers 80% of the home’s purchase price. The second loan covers 10% of the home’s purchase price and is usually in the form of a home equity or HELOC or home equity line of credit that effectively “piggybacks” on the first. Good reasons for completing a purchase this way are to avoid paying PMI, avoid jumbo financing in certain instances, bridge a gap if your current home hasn’t sold, and keep more cash in the bank in the short term.
A mortgage rate lock on a mortgage loan means that your interest rate won’t change between the now and your close of escrow, provided that you close within the specified lock period time frame and there are no changes to your application. Lock time frames typically come in periods such as 15 days, 30 days, 45 days, 60 days, 180 days, 270 days, and 1 year.
The APR or Annual Percentage Rate refers to the yearly interest generated by a sum that’s charged to borrowers or paid to investors. APR is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan or the income earned on an investment. This rate includes any fees or costs associated with the transaction but does not take interest compounding into consideration. The APR provides consumers with the bottom-line figure they can compare amongst mortgage lenders, credit cards, or investment products.
PMI or Private Mortgage Insurance is required whenever you put less than 20% down on your new home using conventional financing. PMI protects the lenders if the buyer defaults on the loan. It is usually added to the monthly mortgage payment. However, FHA loans require that you pay PMI even if you are able to put 20% down or more on your home.
The biggest difference between a pre-qualification and a pre-approval is that getting pre-qualified is typically quicker and a less detailed process, while pre-approvals are more comprehensive and take longer. Getting a pre-qualification or pre-approval letter is generally not a guarantee that you will secure a mortgage loan from the lender. You’re wise to see if your lender will give you a pre-approval and submit your loan to underwriting to have it fully underwritten and conditionally approved before starting to look at homes with a realtor.
I offer a full range of residential loan types including conventional, FHA, VA, USDA, non-QM, Jumbo, and Reverse. Most of these are common amongst all lenders. What is most important is finding a lender that you work well with, is responsive and knowledgeable not only on loans but on the real estate market in general.
A mortgage payment will always include principal and interest. If you elected or were required to have an escrow or impound account than a reserve amount for property taxes and homeowner’s insurance will be included in your mortgage payment as well. Separately, depending where you live you might be in a homeowner’s association. In that case, you will also have HOA dues.
The short answer is yes. If you are planning on obtaining mortgage financing you will need to get an appraisal for all loan types including: conventional, FHA, USDA, VA, jumbo and non-qm. For purchases, lenders usually require appraisals to ensure that the estimated value of the property matches the contract price. This is extremely important for lenders because the property represents the collateral for their mortgage loan, and lenders need to ensure that there is a sufficient equity cushion to keep the mortgage within acceptable risk parameters. However, these days appraisal waivers have become a common thing and can come up if when your loan is going through an automated underwriting system.
PMI or Private Mortgage Insurance is required whenever you put less than 20% down on your new home using conventional financing. PMI protects the lenders if the buyer defaults on the loan. It is usually added to the monthly mortgage payment. However, FHA loans require that you pay PMI even if you are able to put 20% down or more on your home.
Yes. Loans closed through the remote online notarization process can include either wet-ink signed promissory Notes (i.e. non-eMortgages) or electronically signed Notes (i.e. eMortgages). Sellers can deliver loans with electronically signed Notes, only if they are approved to deliver eMortgages. And with the E-SIGN Act, you can close on your home using DocuSign or other electronic signature software. But some states require a wet signature on certain documents.
The minimum down payment required varies from loan program to loan program. For conventional, it is 3% but you will need to meet certain income restrictions otherwise the standard is 5%. For FHA, the minimum is 3.5%. For VA and USDA, the minimum down payment is 0%.
A mortgage rate lock on a mortgage loan means that your interest rate won’t change between the now and your close of escrow, provided that you close within the specified lock period time frame and there are no changes to your application. Lock time frames typically come in periods such as 15 days, 30 days, 45 days, 60 days, 180 days, 270 days, and 1 year.
The higher your credit score the more confidence your lender has in your ability and willingness to make your monthly payments on time. A higher score will also enable you to receive a lower mortgage interest rate and lower fees. Additionally, some lenders may reduce their down payment requirements if you have a high credit score.
To get pre-approved first contact a licensed mortgage loan originator. Your loan officer will then take an application and request certain information from you. This information includes your name, current address, current employment information, and current asset information. They will request your social security number and birthdate in order to run your credit report through all three bureaus. You will then be requested to provide supporting documentation to prove the information you verbally gave your loan officer is insync. Once your loan officer verifies these documents, runs your file through the automated underwriting system and determines the appropriate loan program they can provide you a written pre-approval.
The short answer is yes. Most lenders generate loans and then immediately sell those loans to secondary market investors, such as Fannie Mae and Freddie Mac. In order to protect their security interest in the loan, these government sponsored entities require title insurance coverage. Even those lenders who end up keeping original loans in their portfolio typically get a lender’s title insurance policy to protect their investment against title related defects. In regards to escrow, this service is crucial in a real estate transaction in order to protect both buyer and seller. Escrow ensures that both parties follow through on their obligations as spelled out in their residential purchase agreement.
I offer a full range of residential loan types including conventional, FHA, VA, USDA, non-QM, Jumbo, and Reverse. Most of these are common amongst all lenders. What is most important is finding a lender that you work well with, is responsive and knowledgeable not only on loans but on the real estate market in general.
The biggest difference between a pre-qualification and a pre-approval is that getting pre-qualified is typically quicker and a less detailed process, while pre-approvals are more comprehensive and take longer. Getting a pre-qualification or pre-approval letter is generally not a guarantee that you will secure a mortgage loan from the lender. You’re wise to see if your lender will give you a pre-approval and submit your loan to underwriting to have it fully underwritten and conditionally approved before starting to look at homes with a realtor.
Yes, lenders will typically require that you provide bank statements for the last two months for any account where the funds will be used to cover down payment or closing costs. They ask for two months because they want to see if you received any large deposits in the form of a loan or gift from someone in order to qualify for a mortgage. But in addition to basic checking and savings accounts, your lender will probably want to see all your asset accounts including investment and retirement accounts.
If you are self employed it’s important to understand that getting a mortgage loan will be much harder than a W-2 employee who can document several years of consistent income. However, many self-employed borrowers receive mortgage loans. There is just a higher level of scrutiny and greater documentation requirements in order to underwrite the loan.
Yes you can. You don’t have to be a U.S. citizen, but you must be a legal resident or on a valid visa.
Please note that some visas, such as a diplomat’s visa are not eligible.
Typical closing costs usually average about 3% – 6% of the sales price of your home. These costs include items such as appraisal fee, application fee, notary fee, prepaid interest, recording fees, credit report fee, processing and underwriting fees, title examination fee, homeowner’s insurance premiums, discount points, pro-rated property taxes, title insurance for your lender, escrow and closing fee, transfer tax fees, and HOA fees if applicable.
Loan servicing refers to the administrative aspects of a mortgage loan from the time of funding until the borrower pays off the loan. Loan servicing includes providing monthly statements to the borrower(s), collecting monthly payments from the borrower(s), maintaining records of payments and balances, collecting and paying taxes and insurance (if managing funds in an escrow or impound account), remitting funds to the note holder, and following up on any late payments and delinquencies.
Yes you can still qualify. If you are on permanent disability the income can be counted towards qualification.
Proof of permanency including a letter from a physician, government paperwork, or the institution who is issuing the disability checks will need to be provided. If the disability is temporary then the income cannot be counted. The basic rule in lending is that income must have a two year look back and three year look forward.
Yes. A lender cannot discriminate against a borrower because they are no longer working. However, you still have to qualify for the mortgage based on your credit, income and assets. All permanent retirement plans, annuities, social security, pensions, etc. can be counted as income with the proper documentation. For example, an award letter and proof of receipt of the retirement income must be demonstrated.
80-10-10 mortgage financing is a combination of two mortgages used to purchase a home in addition to a 10% down payment. These loans are also known as piggyback mortgages and are broken down as follows: The first loan is a traditional mortgage that covers 80% of the home’s purchase price. The second loan covers 10% of the home’s purchase price and is usually in the form of a home equity or HELOC or home equity line of credit that effectively “piggybacks” on the first. Good reasons for completing a purchase this way are to avoid paying PMI, avoid jumbo financing in certain instances, bridge a gap if your current home hasn’t sold, and keep more cash in the bank in the short term.
On your closing day, ownership of the property is transferred from seller to buyer. This day consists of transferring funds from escrow, providing mortgage and title fees, and updating the deed of the house to the buyer’s name. This is the last step in buying and financing a home.
You can dramatically improve your credit score by most importantly paying all debt obligation on time and making sure you have no late payments. Furthermore, consistently checking your credit reports for any errors or changes with all three bureaus in crucial. Additionally, keeping old accounts open, keeping your credit utilization percent low, and limiting the number of new accounts being open will all help you improve your score.
The APR or Annual Percentage Rate refers to the yearly interest generated by a sum that’s charged to borrowers or paid to investors. APR is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan or the income earned on an investment. This rate includes any fees or costs associated with the transaction but does not take interest compounding into consideration. The APR provides consumers with the bottom-line figure they can compare amongst mortgage lenders, credit cards, or investment products.
Deciding whether to pay points to lower your interest rate is a decision that’s made on a case by case basis. It’s heavily dependent on your personal situation along with what you think will happen with interest rates during the time you hold your loan. With that being said it can be a great strategy. Lowering your rate even just 25 basis points (0.25%) could save you tens of thousands over the life of the loan. But there is a catch. You will have to keep your mortgage long enough for the monthly savings to cancel out or breakeven with the cost of buying points. Fortunately, the math is fairly simple to determine this. Your loan officer can help you find out if points are worth it in just a few minutes.
Mortgage points are essentially a form of prepaid interest that you can choose to pay up front on a mortgage loan in exchange for a reduced interest rate and lower monthly payment (a practice known as “buying down” your interest rate). In some cases, a lender will offer you the option to pay points along with your closing costs.