The Spring Mortgage Team Podcast with Rob Spring

When it comes to what income is considered when qualifying for a mortgage, certain types of income are verified in different ways. What income is considered when qualifying for a mortgage? These days, everything has to be verified through W2s, paystubs, or tax returns. Certain types of income are verified in different ways. For example, a self-employed person would need tax returns to verify their income. A self-employed person is someone who owns 25% or more of a company or is a contract employee whose employer doesn’t take out taxes so they have to file their own. For a W2 employee who has a commission or a bonus, if that bonus or commission is greater than 25% of their annual income, they also need tax returns. "Understanding how incomes are verified for mortgages isn’t as difficult as you might think." Understanding how incomes are verified for mortgages isn’t as difficult as you might think. If you have any questions, just give us a call or shoot us an email and we’d be more than happy to walk you through the process and explain exactly what the underwriter will be looking for. We look forward to hearing from you.

What’s required to get started on the mortgage approval process? Today, I’d like to give you some insight on that. Today I want to give you a quick look at the mortgage approval process. So, how do we get started? First of all, you’ll need to provide my team and I with your name, social security number, address, residence history, employment history, and other information to complete the base of the application. We can do this over the phone or in person. It all comes down to what you prefer. "We want to take care of you as smoothly and quickly as possible." From there, we can move on to discussing more relevant information, so that we can get you moving along with the process. We want to take care of you as smoothly and quickly as possible. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

A lot of people have questions about down payments. Today, I’m bringing you some answers. Today, we’re going to be talking about down payments. This is a topic that raises a lot of confusion, which is why I’m here to clear up the subject.  One of the main things people ask is, “How much do I need to put down?” The truth is that it all depends. We need to ask ourselves if we can meet your financial budget, if we can meet your monthly payment requirements, and if we can buy the house you have in mind with the funds you have on hand. "The amount people put down varies a lot more than some might tend to believe." Most of our clients put down between 3% and 10%, but some put down more and others put down less. The amount people put down varies a lot more than some might tend to believe.  We even have programs available that allow you to buy a home for nothing down at all. Ultimately, we’d love to walk you through the process and determine what route is best for you. If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

Home remodeling is as hot as it's ever been. Here are five projects that bring the best return on investment. Home remodeling is hotter than ever. According to researchers at Harvard University, remodeling investment is up 6% over last year and now makes up a $324 billion market. According to a survey of remodelers and real estate professionals, there are five remodeling projects that offer the best returns: 1. Your kitchen. Kitchen remodeling can be as simple or as elaborate as you like. However, to maximize your return, keep your investment to under 20% of the value of your home—as is recommended by surveyed real estate professionals. The outcome? A whopping 85% return on your investment. 2. Your bathroom. A thorough bath remodeling project can cost up to $20,000. However, not only will it pay for itself, it should give you an added 80% return. 3. Your deck. Replacing your deck can cost you anywhere from a few thousand dollars to tens of thousands of dollars, depending on the size. The expected benefit will be similar to a bathroom remodeling project—around an 80% return for a fresh, new deck. 4. Your siding. Fading or worn-out siding can turn off potential buyers before they even step foot in your home. Replacing old siding will make it much easier to sell your home, and in addition, it should give you an 80% return on an investment of around $10,000. 5. Your windows. New windows can mean greater energy efficiency, increased thermal and acoustic comfort, and a more modern look. Homebuyers are well aware of this, and they are willing to pay accordingly. That's why a typical window replacement should yield at least a 70% return on your investment. "Some will make more sense for your home than others." Clearly, some of them will make more sense for your home than others. If you're considering selling your home, then just one of these projects could add tens of thousands of dollars to the price you'll be able to get. If you have any questions or want additional advice about which remodeling projects make sense for you, give me a call or send me an email. We can discuss all the details and I can give you an accurate estimate of what these projects could cost, and how to go about financing them. I look forward to hearing from you!

The Fed’s recent rate hike shouldn’t have any significant impact on our market. In fact, it might actually stimulate it. On June 14th, the Federal Reserve increased its federal funds interest rate by 0.25%. They’re also widely expected to raise rates once or twice more over the course of 2017. What does this mean for the real estate market? While any action by the Fed always garners a lot of attention, I believe these increases will not have any significant impact on our market. First of all, mortgage rates have actually trended lower in the wake of the Fed’s recent announcement. The 30-year mortgage rate recently hit 3.9%, the lowest level in 2017. In fact, it’s a common pattern for the mortgage rate and the Fed rate to move in opposite directions, and the same thing has happened the last two times the Fed raised rates.  Second, the economy continues to do well. The Fed decided to increase its rate because unemployment and inflation are low, household spending is picking up, and we’ve seen steady growth for the past nine years. This is good news for the real estate market. As expected, we continue to see strong demand and a corresponding increase in home prices. "These increases will not have any significant impact on our market." Third, while the Fed’s rate increase is normally meant to cool off the economy, it might actually stimulate it in this case. Because interest rates were so low for such a long period of time, experts believe the recent increases might ease pressure on the financial system and encourage lending.  Case in point: since the Fed started raising its rate in December 2016, total mortgages are up 2.5% year over year.  In conclusion, while any move by the Fed is likely to lead to a lot of hand-wringing, I believe the real estate market will not be affected and will continue on its own healthy course. Nonetheless, it’s clear that right now is a uniquely good moment for everyone in the real estate market. Today’s low mortgage rates are good for homebuyers because they make homes more affordable. If you have any questions about our market or you’re thinking of buying or selling a home, give me a call or send me an email. I’d love to help.

Today I want to inform you about how Fannie Mae, the nation's largest underwriter of mortgages, recently introduced three new rules that will affect those with student debt. If you have a student loan or you are a cosigner on one, I have some good new for you.  Fannie Mae, the nation's largest underwriter of mortgages, recently introduced three new rules that will affect those with student debt. These new rules can make it easier to get a mortgage, and they can make it easier to pay off your (or your kids’) student loans. The first change is for those on income-based repayment plans, where having a high debt-to-income ratio is the No. 1 reason for not being approved for a mortgage.  Fannie Mae previously used a very conservative 1% of the total loan instead of the actual monthly payment. This can drastically lower your debt-to-income ratio and give you a much better chance of qualifying for a mortgage. Some folks are lucky enough to have their student debt paid by their parents or even by their employer. The thing is, Fannie Mae didn't take this into account when calculating the debt-to-income ratio. That's the second new change. If your employer or your parents have been paying off your student debt and you can show evidence of this for the past 12 months, then this debt won’t be counted in your debt-to-income ratio. This makes it more likely you will qualify for a mortgage. "If you can qualify for a mortgage right now, you definitely should." If you can qualify for a mortgage right now, you definitely should. Rates are still at a historical low, and lots of great houses have recently come on the McKinney market. Fannie Mae also makes it possible to refinance your mortgage for more than the value of your home. Normally, there is a 0.25% fee that applies to any cash you take out in this way.The third big change is that Fannie Mae will now waive that fee when you use this cash to pay off a student loan.  This applies whether the loan is yours, or you're a cosigner. If the mortgage rate is significantly lower than the student loan rate, it can make sense to refinance in this way, and the new rule makes it cheaper to do so.  If you need help understanding these new guidelines to see whether they’re right for you, or you have questions about putting them into practice, get in touch with me. I’ll be glad to help.  I hope to hear from you soon!

Today, I want to share with you all the options you have for an affordable down payment as a homebuyer. What's the biggest obstacle to homeownership? According to a recent survey, "saving enough for a down payment" comes at the top of the list. A whopping 55% of prospective homebuyers cited this as their main stumbling block. And with the continuing growth of home prices, things aren't getting any easier. In fact, homeownership rates reached a 20-year low last November. It wasn't always like this.  A decade ago, many lenders were offering easy, no-money-down mortgages.  However, after the financial crisis, mortgage standards have become more restrictive. A typical mortgage now requires a 20% down payment.  "55% cited the lack of a down payment as their main stumbling block." Here's the good news.  If you have decent credit and a steady income, you might be qualified for a number of specialized programs that require no or very little down payment. Here are a few of the top options. First, there's the USDA loan, which is valid for homes in certain regions, such as rural and suburban areas.  With zero money down and lenient credit requirements, the USDA loan can be a great choice for many homeowners.  Second, there’s the VA loan, which you can apply for if you or your spouse served in a branch of the military. It's possibly the most generous zero-money-down mortgage because of low interest rates and low closing costs. Third, there's the FHA loan. It does require a 3.5% down payment — still drastically more achievable than the 20% required for a conventional mortgage.  Finally, there are a number of credit unions and first-time homebuyer programs that might apply to your particular situation. There’s one important thing you should know.   If you get one of these no-money-down mortgages, chances are good you will be required to pay private mortgage insurance, which can drive up your monthly payments. Fortunately, private mortgage insurance will disappear after your mortgage balance is under 80%. Also, the money you do pay will be tax deductible in most cases. In short, there are lots of options to make owning a home a reality for you, even if you haven't saved up tens of thousands of dollars. If you're considering buying a home, give me a call and we can discuss your options. Buying a McKinney Home? Click here to complete your loan application. And if you need more advice on getting a no-money-down loan, give us a call at 214-929-5810.

Standing out as a buyer can be tough in a seller’s market. Here are three ways to make it easier. When competing for a home in a seller’s market, you need to do everything you can to help your offer stand out. Here are three surefire ways to make your offer more attractive to sellers in this type of market: 1. A professionally written offer. This means no mistakes and no questions left for the listing agent to ask. The No. 1 pet peeve of listing agents is a sloppy offer. Listing agents hate sloppy offers. 2. A heartfelt, handwritten letter to the seller. Explain why you want to buy their house and what it means to you and your family. 3. A fully underwritten approval. That’s where we come in. If you have any questions for us about any of these topics or you’d like to get pre-approved for a mortgage today, give us a call or send us an email. We would be happy to help out.

We’ve developed an in-house down payment assistance program that can help clients who previously wouldn’t have been able to afford a down payment.  Today I want to share some exciting news regarding down payment assistance.  In the past, we’ve had clients that didn’t quite have enough money saved for a down payment. In response to this, we’ve developed an in-house down payment assistance program for up to 3.5% of the sales price. The credit qualifications are minimal and the income caps are much higher than the state-funded DPA programs or bond programs.  We’d love to help you achieve the path toward homeownership, so if you have any questions about this new program, please don’t hesitate to reach out to us. We look forward to helping you!

Choosing the wrong lender can lead to a home sale not closing on time and other unwanted scenarios. Luckily, whether you’re a buyer or a seller, there are steps you can take to ensure this doesn’t happen. Why is choosing the right lender critical if you want to close on time?  For one thing, statistics show that not choosing the right lender can be disastrous. Every month, mortgage services provider Ellie Mae produces a report they call the “Origination Insight Report.” In this report, they track and pull all kinds of data from all the lenders who use their software to process loans. We’re talking millions of loans.  What does the data from the latest report tell us? Firstly, it tells us that the average numbers of days it takes to close a loan from the application to the closing is 46 days. That’s way too many! Secondly, it tells us that only 74% of purchase loans that are submitted end up closing. That means that one out of every four deals falls through, or 25% of the people end up having to put down earnest money, lose their inspection costs, and possibly lose their appraisal fee. Don’t end up as a cautionary statistic. What can you do to make sure you don’t end up becoming one of these statistics?  If you’re a home buyer, start the pre-qualification process as early as possible. Get your documentation in order and choose a lender that has a track record of success.  If you’re a seller, do what you can to verify the pre-approval. Check out things like what kind of lender the buyer is using, how much they’re putting down, and how many days they need for the financing contingency. If you or anyone you know has questions about the mortgage process or about real estate in general, please don’t hesitate to call us or visit our website. We look forward to hearing from you!

As your processor, my job is to package your loan for the underwriting. I'll reveal all the documents you've already sent to your loan officer and I'll request anything else we might be missing so we can be sure we have all necessary documents. It's very important to know who your insurance agent is. Next, I'll order all of our third party things like verification of employment, tax transcripts, title, appraisal, and insurance. It's very important that you know who your insurance agent is early on! We can help with that if you need some referrals. The next step is to send it to underwriting, which only takes a couple of days. Sometimes that review goes perfectly and we don't need anything else, but there may be follow-up questions or more documents that we need. I'm always here to help! If you have any questions, please don't hesitate to give us a call or send us an email.

/*Quote Box --------------------------------------*/ .quote-box{ display: block; margin: 20px auto 20px 40px; background: url(https://s3.amazonaws.com/vyralmarketing/vyral-marketing/quotation.svg) no-repeat; background-size: contain; } .quote{ margin 0; display: none; } .left{ padding-top: 10px; float: left; display: none; } .right{ padding-bottom: 10px; float: right; display: none; } .quote-text{ font-size: 25px; margin: 0; padding: 0; color: $(link.color); text-transform: uppercase; font-family: Arial, sans-serif; } .mobile .quote-box{ display: block; margin: 20px auto 20px 40px; background: url(https://s3.amazonaws.com/vyralmarketing/vyral-marketing/quotation.svg) no-repeat; background-size: contain; } .mobile .quote{ margin 0; display: none; } .mobile .left{ padding-top: 10px; float: left; display: none; } .mobile .right{ padding-bottom: 10px; float: right; display: none; } .mobile .quote-text{ font-size: 25px; margin: 0; padding: 0; color: $(link-color); text-transform: uppercase; font-family: Arial, sans-serif; } Today and I wanted to talk about the home renovation program, which helps homeowners finance improvements, repairs, and upgrades into their mortgage so they don’t have to pay for these things out of pocket. For this loan, you can finance up to 95% of the cost of the house and the improvements, or the total improved value (whichever is less). This can also apply to refinance customers, who can refinance their current mortgage plus the cost of the improvements for up to 95% of the improved value. Start with your ideal location and use this loan to create your ideal home. If you’re in the market to buy but you just can’t seem to find the perfect house in the perfect location, this loan program is perfect. Start with the perfect location, and you can use this program to buy a fixer-upper to turn into your perfect home. If you already own a home and are dreaming of repairs, you can still take advantage of this program, depending on the equity you have in your home. This program allows for all kinds of renovations. The only requirement is that the upgrades are affixed to the home and that they increase its value. This could mean a kitchen remodel, new fixtures, or even a pool. If you have questions about this program, please feel free to give me a call or send me an email today. I’d love to hear from you.

/*Quote Box --------------------------------------*/ .quote-box{ display: block; margin: 20px auto 20px 40px; background: url(https://s3.amazonaws.com/vyralmarketing/vyral-marketing/quotation.svg) no-repeat; background-size: contain; border: none; } .quote{ margin 0; display: none; } .left{ padding-top: 10px; float: left; display: none; } .right{ padding-bottom: 10px; float: right; display: none; } .quote-text{ font-size: 25px; margin: 0; padding: 0; color: $(link.color); text-transform: uppercase; font-family: Arial, sans-serif; text-align: left; } .mobile .quote-box{ display: block; margin: 20px auto 20px 40px; background: url(https://s3.amazonaws.com/vyralmarketing/vyral-marketing/quotation.svg) no-repeat; background-size: contain; border: none; } .mobile .quote{ margin 0; display: none; } .mobile .left{ padding-top: 10px; float: left; display: none; } .mobile .right{ padding-bottom: 10px; float: right; display: none; } .mobile .quote-text{ font-size: 25px; margin: 0; padding: 0; color: $(link-color); text-transform: uppercase; font-family: Arial, sans-serif; text-align: left; } Apply Online Book an Appointment As a homeowner, there are many ways you can save money without refinancing.  First, you can have your conventional mortgage insurance removed. If you bought a house in the last five years, there is a good chance you can remove mortgage insurance because home values have gone up 8% to 10%. You should also check on your home insurance. Insurance rates change all the time. For instance, if a company with higher exposure in certain areas gets hit by a storm, their rates will go up. A company with less exposure would probably keep the same rates despite the storm, giving you good coverage for less money. Switching insurance companies could save you a lot of money in the long run. Home insurance rates change all the time, so shop around for a better one. If you’re happy with your insurance, consider checking your utility rates. You don’t have much choice when it comes to things like gas, water, and trash. However, you can save money on your electricity, phone, cable, or internet bill. You can research different rates on your own by checking PowerToChoose.org or we can hook you up with a free concierge service that will shop the rates and get you the best program.  Finally, file that homestead exemption to save 15% to 20% on your property taxes. You have to be the owner of record on January 1st and you have three months to file the exemption. Once that exemption has been filed, it’s good for that year and all the other years you spend in that house. As you can see, refinancing is not the only way you can save money on your house. If you have any questions for me, give me a call or send me an email. I would be happy to help you!

Apply Online Book an Appointment Protect Your Transaction (PYT) is a $10,000 closing assurance program. We’re so confident in our loan approval that we’re willing to put that kind of money on the line for our clients. This kind of assurance makes your offer really stand out in the seller’s eyes, which is crucial in this busy market. If you have any questions about this program, or any real estate topic, please don’t hesitate to reach out to us. We would love to hear from you!

Are you ready to Apply for a Home Mortgage? Our team here at Spring Mortgage is different in a lot of ways. Most of the work we do is behind the scenes, but we wanted to share some of that with you today. Here’s how we differentiate ourselves from the pack: Knowledge. We know the business, including all the guidelines and how to make things work in an ever-changing mortgage world. Flexibility. We have home loans for everyone. Whether you need to buy a mansion with a super jumbo loan, or you’re a first-time buyer who needs down payment assistance, we can help you. We have loans for those with great credit, and those who have some hiccups. We even have loans for people who have gone through bankruptcy or a foreclosure last week. Communication. We work really hard at it. The level of communication between Realtor, lender, and customer in this industry is horrible. We don’t accept that. Our process is fine-tuned so that no Realtor or customer will ever be in the dark. If you ever have questions for us, we’ll get right back to you. Finally, we have our $10,000 closing insurance program. We are so proud of our process that if we fail to perform on our commitment to a customer, we will pay them $10,000. If that’s not different, we don’t know what is. "We have home loans for everyone." If you have any questions for us, please give us a call or send us an email. We would love to hear from you!

Are you ready to Apply for a Home Mortgage? If you’ve ever applied for a mortgage, you know how much documentation is needed. If not, it’s important to know exactly what you’ll need to keep the process going smoothly. Your type of income determines the documentation you’ll need to provide in most cases. If you’re a W-2 employee (taxes are taken out of your paycheck) will need two years of W-2 forms, and if you rental property or commissionable income, or your bonus exceeds 25% of your salary, you’ll need two years of income tax returns. "It’s important to know exactly what is needed." You also need 30 days worth of recent paycheck stubs, two months worth of account statements for check, savings, retirement; anywhere that your money comes from. You also need to provide 24 months of employment residence history, along with identity verification like a driver’s license, social security card, or passport. For those who are self-employed or a contractor (taxes aren’t taken out of your paycheck) you’ll need two years worth of 1099 and K-1 forms, two years of full personal tax returns, and if you own more than 25% of the business, you’ll need two years of the business tax returns as well. Everyone will also need to provide a year-to-date profit-loss, to show that your income is in line with the tax returns from an income and expense standpoint. We’ll help you with that.