Bob Johnson (AKA BobMortgage) hears it all the time. With our tight inventory, it’s hard to find a move-in ready home in your perfect neighborhood. Luckily, our most-trusted mortgage expert has a solution  — financing your renovation in your mortgage.

Don’t be discouraged if you find the perfect location with great schools, wonderful amenities, and safe streets, but can’t find the perfect home! Johnson, the senior mortgage adviser at the nation’s oldest private lender, Wallick & Volk, tells you what you need to know in today’s BobMortgage Zone broadcast. 

Jump to find out more!

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Trey_Kim2

It’s one thing to be married to your job, but what if you work with the person you’re married to? Spending all day at the office with your spouse and then spending evenings and weekends at home has to be a drain, right?

Not for Trey and Kim Rabon, who have become experts in maintaining a work-life balance. Not only that, but this pair capitalizes on the work dynamic that their marriage brings to Guardian Mortgage, earning them the trust of their clients time and again.

For those reasons and so much more, we’re honored to feature Trey and Kim as this months Guardian Angels. Jump to learn more about these trusted mortgage professionals!

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GuardianDirect_2

With Memorial Day coming up on Monday, we wanted to take time to recognize some of the mortgage professionals at Guardian Mortgage that have served our nation. What you may not realize is that the values instilled by military service translate easily to mortgage lending. Integrity, service, and respect are characteristics instilled in all branches of our nation’s armed forces, and you can find them in the staff at Guardian Direct as well.

So thank you, Guardian Direct, for giving us a chance to shine a light on the former servicemembers on your staff. To find out more about these amazing men and women that make up this month’s Guardian Angels, read on for our Q&A with Jeff Guthrie, Vice President of Sales at Guardian Direct.

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Mortgage loan

Getting a home loan can be a challenge for self-employed people: A typical mortgage lender wants to see one job with steady month-over-month income.

But an independent contractor might have time off between jobs, varying amounts of income each pay period, and business income that looks low because of capital investments, which are common tax write-offs for the self-employed. This often means they can’t qualify for a traditional home loan, even though they’re earning enough to afford it.

In fact, about one in four borrowers see their traditional purchase loan applications rejected in areas like Dallas and Travis counties, where self-employment is roughly 30 percent, according to Zillow. Around the rest of Texas, the chances of being rejected can be even higher for well-qualified borrowers, including small business owners, freelancers, entrepreneurs, and self-employed borrowers.

“It’s not that they aren’t financially capable of buying a home—it’s that they’re up against a traditional lending system that hasn’t adapted to a changing workforce,” said Michael Slavin, CEO of online mortgage lender Privlo, which rolled out its services in Texas Friday, one of nine states in which it is currently doing business.

“We underwrite each borrower and are able to tailor the loans,” Slavin said. “We’re using technology to be a lot more flexible because we deal with the exceptions to all the lending rules.”

Because of those exceptions, Privlo considers many more data points beyond the typical W2 used by traditional banks and institutions to assess a borrower’s creditworthiness, like tax returns and bank statements.

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Inwood Group photoIt is no secret that the self-employed borrower is treated differently in today’s mortgage lending environment. But then, Inwood National Bank’s Mortgage Group is a different type of lender.

We recently closed on a loan after the original lender failed to meet the contract closing date. In fact, a week after the original closing date, one of the “Big 3” banks provided the borrower with a list of 23 additional conditions to be satisfied prior to approving the loan. Fortunately, his agent told him about Inwood National Bank’s mortgage group that specializes in self-employed borrowers and jumbo mortgages.

This borrower had worked in the same industry for 28 years, but like most business owners, had experienced large swings in income. Inwood was able to take a look at his income over multiple years, and not focus on just what happened during the recession.

The reality is we care more about the future, than the past. This does not mean we do every loan. We still have to document income, but we try to look at the big picture.

And here’s something you haven’t heard in a long time: Inwood National Bank’s mortgage group also prides itself in being able to meet short closing dates. During the month of July, for example, we closed several purchase loans in less than 15 days. (One of these loans was the example above.) Obviously to close this quickly, it takes a joint effort between the borrower, seller, and other parties involved. As a commercial bank, Inwood caters to self-employed borrowers and welcomes them with open arms AND popcorn.

As you may know if you are a regular reader of this blog, our market is hot. Our builders are busier than ever, and it is not uncommon for many homes to have back-up offers. What happens when the contract falls through because the buyer cannot obtain financing? The contract is null and the second buyer swoops in.

Inwood National Bank Mortgage pros also know how to make the close as simple as possible. We send closing instructions days in advance of a closing instead of hours before. This gives the buyer the ability to actually review their final settlement charges and be prepared, prior to showing up at the closing table.

In this active market, the ability to submit an offer without the contingency of selling an existing home has become increasingly important. Inwood offers buyers this with bridge loan financing. The ability to close quickly can mean the difference between a contract being accepted or not. Mortgage companies typically have to borrow money for every loan they fund, and that frankly hampers their abilities. As a commercial bank, Inwood has the flexibility to make loans that traditional mortgage companies cannot do.

We just like to lend money to good borrowers. At Inwood National Bank mortgage group, that is our job.

If you are looking for a high touch, personal and proficient streamlined mortgage process with trustworthy, experienced staff, contact Inwood National Bank’s mortgage group at 214-351-8730.

Who knows, you might walk out with a mortgage loan on your dream home?

(This, by the way, is a CandysDirt sponsored post.)

 

 

 

 

 

 

 

 

 

 

 

 

 

Making it Rain

Interesting story in the Los Angeles Times. According to their business desk, banks are easing lending restrictions and lending more freely, using “creative financing,” which could bring more risk to the market.

The story, which talks about “piggyback financing” and other risky mortgage loans, says that with higher prices comes more risk in housing finance. This all sounds familiar, doesn’t it?

With home prices rising, risk is creeping back into mortgage lending. In addition to creative down-payment arrangements, mortgages on high-end properties — so-called jumbo loans — have also gotten plentiful and cheap. Meanwhile, banks are accepting borrowers with lower credit scores and allowing them to take on more debt relative to their incomes, experts and industry professionals say.

“We are definitely not seeing the looseness we saw during the boom years, but it seems to me that the pendulum is swinging back,” said Erin Lantz, director of real estate website Zillow.com’s mortgage market.

The relaxing of standards comes as banks rely more heavily on new home loans to replace big profits from the recent boom in refinancing, driven by historically low rates. As demand for refinancing declines — and interest rates start to rise — some analysts say an improving economic outlook will cause banks to lower standards further.

But while banks may be lowering standards, and while the Fed is poised to increase interest rates, mortgage restrictions under Dodd-Frank will be coming to bear soon, making lending a series of hoops homebuyers must jump through.

And while some banks are lending more, I hope that we’ve all learned our lesson from the sub-prime mortgage crisis. We have, right?

QM And QRM Dodd Frank

The real estate landscape is constantly changing, thanks to a regulatory environment that is learning from its past. After the housing bubble burst, fueled by the sub-prime lending market crash, lawmakers were in a frenzy to control the damage. The question is, though, with regulatory belt-tightening, will there be unintended consequences? How can this actually prevent homeowners from going underwater?

That’s where staying up-to-date comes into play, and there are few experts better versed in the new mortgage alphabet soup than the folks at Guardian Mortgage. If you haven’t the faintest clue as to what QM, QRM, and Dodd-Frank are, then perhaps you should read this fantastic article from Guardian themselves:

The Dodd-Frank Consumer Protection Act, which was signedinto law in July 2010, was designed to restore consumer confidence in the housing industry. The law establishes requirements, referred to as Qualifed Mortgage (QM) and Qualifed Residential Mortgages (QRM) that must be met before a mortgage, new or refinanced, can be created.

Need to bone up? Read the whole article from Guardian Mortgage.