Tough Underwrites & Problem Solving Early

Loan Approved8/27/19- I hope you had a great weekend and I hope that everything is going well!  We dropped our last Freshman off at UNLV this weekend and our two Juniors arrived at their schools too and everyone had a good first day of school!

This was a busy weekend and we had quite a few new escrows open yesterday.  I have to say that we are getting some interesting files coming through.  So one thing that Underwriters  look for when a client is buying is stability of income.  This is why they want a self employed person to have at least 1 but generally 2 years of taxes before they will give them a loan.  This is why when a person is off work for 6 months or a year that an underwriter wants to see them back at work for 90 days to give them income.  The reason we need 3 months worth a child support after a divorce is to make sure that the former spouse is going to actually pay the child support!

There are many exceptions to this rule.  Let’s take a nurse that graduated and got his or her RN!  Well they worked for 3-7  years to get there and now they have a job so lets give them the income before the 90 days!  OK, well if that nurse is hourly and her pay stubs vary then how do you derive income?  Well if the nurse worked for a year or so then you could average the income, but 30 days is hard!  We could get a verification from the employer on how many hours that nurse will work, but those are not always accurate and do not reflect the true hours worked.  The longer a person works the easier it is for us to calculate the income.  How about a plumber that has been working as an apprentice and then became a licensed plumber in the union and went from $25.00 per hours to $47.00 per hour!  He made 60K in 2018 and just got his $22.00 per hour raise a month ago?  Well, we would get every check going back 2 years to see the hours he worked and what OT he worked and try to calculate from there!  A VERY Inexact science!  It might take some really good math skills and some convincing.

These are tough files and pretty normal as people who get big increases tend to buy pretty soon after they get their increases.  When you talk with your clients and find this out, and your client was pre-approved with some internet lender, then ask that lender who has been in the business for 6-8 weeks what questions he/she asked?  If you think that person didn’t ask the right questions then you may be in trouble when you open escrow!  You may actually want to have them talk with someone who can diagnose the issues up front and let you know where all of the problems could be.  Or you can put your head in the sand and hope an underwriter doesn’t notice and maybe your transaction and the 4 attached transactions will close?

Some interest rates have bounced back up a bit, but rates are moving daily or truly by the minute.  Below are rates as of this moment:

  • 30-year fixed conventional 1st Mortgage with 25% down – 3.625% (3.673 APR). Loan amounts up to $484,350.00 = $2208.88
  • 15-year fixed conventional 1st Mortgage with 25% – 3.125% (3.210 APR). Loan amounts up to $484,350.00 = $3374.03
  • 5/1 ARM 1st Mortgage –  25% down – Fixed for 5 years and then becomes variable – 3.500% – (3.594 APR) Loan amounts up to $3,000,000.00 = $13,471.34
  • 7/1 ARM 1st Mortgage – 25% Fixed for 7 years and then becomes variable – 3.625% – (3.714 APR) Loan amounts up to $3,000,000.00 = $13,681.54
  • 10/1 ARM 1st Mortgage – 25% Fixed for 10 years and then becomes variable – 3.750% – (3.844 APR) Loan amounts up to $3,000.,000.00 = $13,893.47
  • 30-year fixed 1st Mortgage FHA loan 3.50% down – 3.250% (4.663 APR). Loan amounts up to $484,350.00 = $2144.81 + $349.08 PMI = $2493.89
  • 30-year fixed 1st Mortgage VA loan 0% – 3.250% (3.296 APR). Loan amounts up to $484,350.00 = $2107.92
  • 30 Year Fixed rate 1st Mortgage Jumbo Loan 25% down – 4.250% (4.344 APR).  loan amounts up to $3,000,000.00 =14,758.20

I will be in the office all week and I want to hear from those of you who have been struggling with your current lender!  It is important to surround yourself with a team that is responsive, communicative, reliable, productive, positive, creative, honest, and knowledgeable.  I know I run a team that is all of those things and more.  I am always your first point of contact and I am never too busy for you and your clients.  My cell is  661-714-6258 and my office is  661-260-2970 xt. 2222.  Have a great day and I will look forward to hearing from you soon!

Tough Underwrites & Problem Solving Early!

Loan Approved8/27/19- I hope you had a great weekend and I hope that everything is going well!  We dropped our last Freshman off at UNLV this weekend and our two Juniors arrived at their schools too and everyone had a good first day of school!

This was a busy weekend and we had quite a few new escrows open yesterday.  I have to say that we are getting some interesting files coming through.  So one thing that Underwriters  look for when a client is buying is stability of income.  This is why they want a self employed person to have at least 1 but generally 2 years of taxes before they will give them a loan.  This is why when a person is off work for 6 months or a year that an underwriter wants to see them back at work for 90 days to give them income.  The reason we need 3 months worth a child support after a divorce is to make sure that the former spouse is going to actually pay the child support!

There are many exceptions to this rule.  Let’s take a nurse that graduated and got his or her RN!  Well they worked for 3-7  years to get there and now they have a job so lets give them the income before the 90 days!  OK, well if that nurse is hourly and her pay stubs vary then how do you derive income?  Well if the nurse worked for a year or so then you could average the income, but 30 days is hard!  We could get a verification from the employer on how many hours that nurse will work, but those are not always accurate and do not reflect the true hours worked.  The longer a person works the easier it is for us to calculate the income.  How about a plumber that has been working as an apprentice and then became a licensed plumber in the union and went from $25.00 per hours to $47.00 per hour!  He made 60K in 2018 and just got his $22.00 per hour raise a month ago?  Well, we would get every check going back 2 years to see the hours he worked and what OT he worked and try to calculate from there!  A VERY Inexact science!  It might take some really good math skills and some convincing.

These are tough files and pretty normal as people who get big increases tend to buy pretty soon after they get their increases.  When you talk with your clients and find this out, and your client was pre-approved with some internet lender, then ask that lender who has been in the business for 6-8 weeks what questions he/she asked?  If you think that person didn’t ask the right questions then you may be in trouble when you open escrow!  You may actually want to have them talk with someone who can diagnose the issues up front and let you know where all of the problems could be.  Or you can put your head in the sand and hope an underwriter doesn’t notice and maybe your transaction and the 4 attached transactions will close?

Some interest rates have bounced back up a bit, but rates are moving daily or truly by the minute.  Below are rates as of this moment:

  • 30-year fixed conventional 1st Mortgage with 25% down – 3.625% (3.673 APR). Loan amounts up to $484,350.00 = $2208.88
  • 15-year fixed conventional 1st Mortgage with 25% – 3.125% (3.210 APR). Loan amounts up to $484,350.00 = $3374.03
  • 5/1 ARM 1st Mortgage –  25% down – Fixed for 5 years and then becomes variable – 3.500% – (3.594 APR) Loan amounts up to $3,000,000.00 = $13,471.34
  • 7/1 ARM 1st Mortgage – 25% Fixed for 7 years and then becomes variable – 3.625% – (3.714 APR) Loan amounts up to $3,000,000.00 = $13,681.54
  • 10/1 ARM 1st Mortgage – 25% Fixed for 10 years and then becomes variable – 3.750% – (3.844 APR) Loan amounts up to $3,000.,000.00 = $13,893.47
  • 30-year fixed 1st Mortgage FHA loan 3.50% down – 3.250% (4.663 APR). Loan amounts up to $484,350.00 = $2144.81 + $349.08 PMI = $2493.89
  • 30-year fixed 1st Mortgage VA loan 0% – 3.250% (3.296 APR). Loan amounts up to $484,350.00 = $2107.92
  • 30 Year Fixed rate 1st Mortgage Jumbo Loan 25% down – 4.250% (4.344 APR).  loan amounts up to $3,000,000.00 =14,758.20

I will be in the office all week and I want to hear from those of you who have been struggling with your current lender!  It is important to surround yourself with a team that is responsive, communicative, reliable, productive, positive, creative, honest, and knowledgeable.  I know I run a team that is all of those things and more.  I am always your first point of contact and I am never too busy for you and your clients.  My cell is  661-714-6258 and my office is  661-260-2970 xt. 2222.  Have a great day and I will look forward to hearing from you soon!