Michigan Mortgage

Important Tips to Remember when Doing a Loan Modification

Run the numbers first. Know what would be a good scenario for you. Figure out what kind of budget reductions you can make first and then determine what kind of payment you need to make it work. Come up with one or two ways to get there…

Self Serving or True?

This post covers something I often think but rarely say because it sounds as though I am being very self serving. But because blog readers are volunteers, I think this is the right medium in which to present it.

COST AND RATE SHOPPING…

Successful Home Ownership III – When Does it Make Sense to Take the Plunge?

It’s easy to print the “regs” and find out from FHA or VA or Fannie Mae just what it takes for them to approve a loan for you. The rules and guidelines are very detailed but they’re understandable.

But did you know that I can approve a person whose gross (before taxes and all other withholdings) income is $60,000 per year for a $2500 house payment under the right list of conditions? That’s half the borrower’s income. The before tax income! In this case the person would have approximately $1200 left every month to pay all utilities, car insurance, life insurance, groceries, Christmas presents, etc. Not sure how this make sense, but FHA will do it – and with only 3.5% down.

Here are some helpful benchmarks to consider before trying to buy a home or make a move up into a more expensive home…

Successful Home Ownership I – “Qualify” vs. “Afford”

In my many appointments with hopeful homeowners to be and with those hoping to make a transition to another home or purchase a second home, I often draw a simple distinction between two words—qualify and afford.

The word qualify is my word. As the lender I need to make sure that I can “qualify” the borrower for the loan and ultimately the home that she wants.

The word afford is the customer’s word and is often ignored in the lending office. This is the process whereby the potential borrower determines what she is able to pay each month based on her income and other bills and lifestyle habits.

Let me give you an example of the conflict…

TKO of the HVCC by the NAMB!!?

I have been holding on to this post for some time, but on Friday, the subcommittee working on House Bill HR3126 approved it in committee. This bill contains something better than we have all been hoping for regarding HVCC and its heading for the full House of Representatives.

The Folly of the Reg Z Exemption

There’s an interesting pair of verses in the book of Proverbs. They go like this: “Answer not a fool according to his folly, lest you be like him yourself.” Then right after that we read, “Answer a fool according to his folly, lest he be wise in his own eyes.” This is no contradiction…