Ingrid B. Quinn

NMLS ID #211652 Arizona, Loan Consultant


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Rumor: Loans Are Hard to Get

rumors

I receive phone calls on a daily basis from people looking for a mortgage. They want to get prequalified to purchase a home and most want to have the rumor “It’s hard to get a loan nowadays” dispelled. There are a lot of mortgage options available:

1. Conventional conforming loans- up to 97% loan to values to $417,000 or higher depending on area of the country loan is placed
2. FHA loans- 96.5% loan to values
3. VA loans- 100% loan to values for veterans & military personnel
4. Jumbo loans- loan amounts over conventional conforming loan limits
5. UDSA- 100% loan to value rural area loans
6. Private/hard money loans
7. Home Equity loans

So where is this bad information coming from? Media, banks, mom & dad, professionals in your life? Getting a loan is not that hard. You need decent credit (not super excellent), a job, and cash for a down payment and closing costs potentially, depending on the type of financing you are eligible for.

Many times the clients I talk to are referred from agents that were supposed to take the client out to look at a rental. If they can afford an $800-$3500 rent payment for example, they may be able to buy a home.

It is important for the consumer to get re-educated on the market today when they are looking to make any kind of move, renting or purchasing, so they know their options and have a plan in place. Many people are surprised when I tell them you can qualify to purchase now. With the market improving and interest rates at historic lows still, now is a great time to buy a home! If you have any questions or comments, I would love to hear from you. I can be reached at Ingrid.quinn@cobaltmortgage.com or http://www.scottsdalemortgageexpert.com or http://www.cobaltmortgage.com/ingridquinn.


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Sellers Where Are You?!

selling-your-home

Markets go up. Markets go down. Markets react. Markets change. Knowing all of this, it makes you wonder what sellers are waiting for! Where are all the sellers? All we hear about in most real estate markets is about the lack of inventory. We hear that sellers are still stung by the real estate correction and waiting “a bit longer” for values to recover before selling. I would advise sellers that are thinking of selling, to repeat the above statements about the market a few dozens times, and then call a Realtor and list their property for sale.

A perfect example of how markets react, change and fill holes is found in articles I have been reading recently about the resurgence of new home construction, as well as by investors who are buying, renovating and flipping properties. Just turn on HGTV and check out the shows! In other words, builders and investor/flippers are stepping in where the average seller will not! That is a signal to sellers that the market will find housing without them.

Sales of new homes in the US are surging. Builders are business people, they identify opportunities, and they are forward looking. New-home sales rose 18.5% compared to a year earlier. Sales of previously owned homes has actually fallen 20% in the Western region of the US because of lack of inventory. What is even more striking is that this difference in sales exists even though a typical new home costs 37% more than one already built. Builders are responding to buyers needs! Where are the sellers of existing homes?

Nearly one in four homeowners and renters say now is a good time to sell a home, according to a survey released recently by Fannie Mae. What are you waiting for…sellers? The economy almost collapsed 5 years ago. Real estate got severely damaged. We have seen a lot of recovery and strength.
And as far as timing, I’d sell now. Don’t wait for “when you have time to repaint the bedrooms”, or for spring, or the summer when the flowers are in full bloom. Inventory is low now; buyers are frenzied for inventory now. While trends certainly vary by region, according to a Trulia study, buyer search activity generally peaks in March and April, while seller listings peak in July. Most sellers would be better off if they pushed the process to now. Sellers could face problems if mortgage rates jump or the economy worsens. And let’s face it, at some point the supply of homes for sale will increase.

Sellers would be wise to be forward thinking, and realize that markets are reacting, people will buy a new home with or without them, other sellers may beat them to the punch, and most importantly that real estate prices which have been strong and rising. So my advice to sellers is, “inventory is low, prices are going up, sell now while things are strong.”


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Where did that Money Come From!? Documenting Cash to Close

  Cash to Close

    It seems like recently I have been running into the same issue with many of my clients. Where is their cash to close coming from to purchase a new home? I have a couple in particular that just got married and, of course, received a stack of cash and checks as gifts from their guests.

   On their January bank statement a $10,000 lump sum deposit appeared and in turn questions arose. Luckily for them we are now in April.

   Loan requirements are your most recent 1-2 months bank statements. If we had needed to use January’s bank statement my clients would have been in a bit of a predicament. Can you imagine being required to hunt down gift letters from every single guest at your wedding?

   Another instance was a young man was selling his ATV for cash to close. I’m glad he informed me of this so we could take the proper steps to document the funds.

   When you have an asset that there is a title or a document showing your ownership prior to selling or transferring ownership, please take the time to make a copy! We need a copy of the bill of sale and to fully cover your bases have the buyer pay in a cashiers check. Any cash transaction is not documentable.

   If any of the bank statements show deposits that are not payroll deposits & are over 25% of you monthly gross income, the source of those deposits should be documented (For example: gifts, inheritance, liquidation of stocks, etc.). All mortgage program guidelines require a full paper trail on where these deposits originated, copies of checks, deposit slips, etc. If any of the bank statements have more than one page, a copy of all pages are required, even if the other pages don’t show anything important or are blank. Depending on how long the transaction takes you may need to send in updated statements as you get them.

   Copies of the most recent statements (or most recent quarterly statement) on any other asset accounts (like stocks, CD’s, 401k, IRA, etc.) are required. If these assets are going to be liquidated or borrowed against evidence of that is needed, and evidence of the deposit of the funds into the new account (such as deposit slips and copies of the check).

   You are entering into a major financial transaction when purchasing a home! The best thing for you to do is to be upfront and honest with your loan officer from the very beginning because anything that is not disclosed upfront tends to cause problems near the end of the transaction process. Your loan officer is your advocate and will fight for you to get the loan you need to buy your home. Be honest with them and let them work for you! For questions or comments, please contact me at Ingrid.quinn@cobaltmortgage.com or visit my websites at www.scottsdalemortgageexpert.com or www.cobaltmortgage.com/ingridquinn.


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Closing Costs, What Are you Paying For?!

  Buyer-Seller-Rd-SignWhen you purchase a home, there are many things to keep in mind, especially pertaining to financing. As a buyer, you need to be prepared for not only your down payment on the home but also closing costs. These are the fees affiliated with the loan and the purchase transaction being processed and closed.

   You pay closing costs to the Title Company, state/county/city, lender, and you also pay tax and insurance escrows, and per diem interest. The closing costs that you pay the lender are usually far less expensive than you pay to the other parties. All costs and down payment funds are paid at the closing table to the Title Company and they are then dispersed to the various entities/vendors that the fees are owed to.

   The following are the seller concessions that the seller can pay on top of splitting the transfer & recordation taxes (if applicable, splitting these taxes is customary in many areas) In Arizona, it is standard in the resale contract for the seller to pay the Owner’s Title Insurance. Sellers may pay up to 3% of the sale price towards a buyer’s closing costs, escrows, and per diem interest, on a conventional loan with a 5% down payment.

   Sellers can pay up to 6% of the sale price to the borrower’s closing costs, escrows, and per diem interest on a loan with a 10% or 20% down payment. On FHA loans a seller is allowed to pay up to 6%. On VA loans, the seller may pay all closing costs for the veteran.

   On an investment property the maximum seller credit for closing costs is 2% of the sales price.

 

   Here is a list of some fees that are included in closing costs:

-Application Fee (if any)

-Loan Origination Charges

-Points

-Appraisal Fee

-Prepaid Interest

-Private Mortgage Insurance

-FHA, VA and Rural Housing Fees

-Home Owners Insurance

-Flood Determination Fee

-Property Survey Costs

-Title/Escrow Fees/Title Insurance

 

   Your lender will give you an estimate of closing costs on the purchase of a particular house you’ve selected. This is called a “Good Faith Estimate” (“GFE”) and it is required by law to be given to a buyer. Then, the day or before closing, the Title Company will give you an actual “Settlement Statement” (aka “the HUD” or “the HUD-1”), which is the final and complete form with all the numbers for the sale, including the actual closing costs.

   There are many different ways of handling the cost to close, including “buyer assist”. The best idea you can do is sit down with either your realtor, financial adviser or a loan officer and simply ask. They will be more than willing to answer any questions and make sure you are truly ready to buy! If you have any questions please feel free to email me at Ingrid.quinn@cobalmortgage.com


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You Can Qualify to Buy a Home with a 620 FICO & 3.5% Down Payment!

home-loan

All too often I hear the response that mortgages are hard to come by, there isn’t money available, lenders want too much down, etc. There is plenty of mortgage money available! You can get an FHA loan for as little as 3.5% down with a FICO (credit score) of 620, a Conventional loan for 3% down with a 680 FICO or a 5% down Conventional Loan with a 620 FICO.

The key ingredient is how the loan package is put together and what are risk factors involved, such as where is cash to close coming from, are there cash reserves after closing, payment shock, job stability etc. If you find that you will be on the lower end of the spectrum, the most important thing to do is be honest with your lender, disclose why you are where you are and work together to build a good case for why an underwriter should approve you.

I tell clients I am writing a book about them. I get to talk to you and get to know you. An underwriter reviews you on paper. They read your story like a book. With each page turned they want answers to questions. They review your credit report. Why are their credit scores low? An underwriter sees your bank statement. Why do they need a gift for closing costs or down payment? Can they manage their bank account? It is important to put your best case forward and make sure you have a loan officer that can write your book to show the best you possible.

These guidelines are specific to my company. FHA will allow lower scores but you must find a lender who will do that loan. For more information please contact me at Ingrid.quinn@cobaltmortgage.com or visit my website http://www.Scottsdalemortgageexpert.com.


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No Down Payment Home Loans

Open House sign if front of house for sale

Are you in the market to buy a home? There are a few options to purchase a home with no money down. Here are some of the options out there today and remember each option has its own particular guidelines and terms that will vary form loan to loan.

• VA loans: This is offered to active, honorably discharged, retired and widowed military personnel. You do still need a 620 credit score to qualify and there is a funding fee that varies depending on military status type.

• The Office of Housing & Development (HUD): HUD REOs (Real Estate Owned) Homes owned by HUD can be purchased for as little as $100.

• HUD programs: There are federal programs for public service healthcare professionals, firefighters, police force and teachers.

• USDA Rural Housing loan: This loan is designed for people who live in rural areas.

• Lease-Purchase: The seller agrees to sell the home to the person leasing it at a specific date in the future. When this is done the person leasing the home will usually pay an amount
in excess of what rent would normally be. This extra money is set aside with an escrow company as a “down payment savings plan”. When the selling date arrives the extra money will
be used as a down payment on purchasing the home.

These are some of the no money down options when purchasing a home and please keep in mind that terms of each agreement do slightly vary form situation to situation. If you have any questions or comment please feel free to email me at Ingrid.quinn@cobaltmotgage.com