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How to Successfully Get a Mortgage in 2014

Kelly Marsh, Branch Manager at Broadview Mortgage Santa Barbara shared an article with us from the CMPS Institute that focuses on mortgage laws and how to avoid bank and institutions from documenting your financial life when applying for a loan. Here are some savvy tips from the article to help you get a mortgage in 2014:

If you’re interested in getting a mortgage in 2014, start preparing by getting documents ready. This includes the last two months of your bank statements and an explanation of large or irregular deposits in your bank accounts.

According to the article, the BSA-AML rules that went into affect in 2012 require mortgage companies, banks, and financial institutions to document the details of your financial life when you apply for a loan. This includes explaining the exact source of funds used for your down payment; explaining large deposits in your bank account; and sharing financial information if you are selling investments to help purchase a home.

This paperwork can be avoided if if you buy your home with cash. However this might not be the best financial move for you. Choose the right mortgage professional to help you, such as a CMPS professional who are bound by Code of Ethics to handle transactions with a higher duty of care than most others in the mortgage industry.

Kelly – thank you for the home buying education!  You can read the full How_to_Successfully_Get_a_Mortgage_in_2014 article for the complete details.

broadview_mortgage_santa_barbaraBroadview Mortgage is the Key Sponsor and will be one of the Exhibitors at our Home Buying Fair on March 1st from 10am-3pm at Earl Warren Showgrounds.




2014 Coastal Housing Partnership Home Buying Fair

Want to learn how to navigate the home buying process in today’s real estate market? Join us for Coastal Housing Partnership’s 3rd Annual Home Buying Fair, which will be Saturday March 1st  from 10am to 3pm at Earl Warren Showgrounds in Santa Barbara. The event will feature free how-to seminars given by local experts to give you the tools you need to guide you in your home buying process. Save the date and we look forward to seeing you there!

Our commercial that aired on KEYT this week is below!




Home Buying Fair Santa Barbara

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How to Navigate the New Mortgage Laws

broadview_mortgage_santa_barbaraThe following blog post was written by By Susan Bonanno and Kelly Marsh of Broadview Mortgage in Santa Barbara. Broadview Mortgage is the Key Sponsor of the 2014 Home Buying Fair on March 1st from 10am-3pm at Earl Warren Showgrounds. They will be exhibiting the Fair so you can meet with them live to have your home buying questions answered.  Susan and Kelly, thank for sharing your expertise and insights! www.BroadviewSB.com 

How to Navigate the New Mortgage Laws

Over the past year, the 2014 mortgage industry rule makers kept changing the rules to the game, despite promises to the contrary. Many companies in 2013 were sending out “the sky is falling” messages based on predicted changes. We chose to wait and see what the actual implications would be. We are always looking for ways to make loans work and help educate the community.

For background, federal regulators sent out “final” mortgage rules in January 2013 and gave the mortgage industry one year to comply; however, the regulators then proceeded to change the rules four times, most recently in November 2013, just two months before the January 2014 compliance deadline. When lenders asked for a final version of the rules so we could read them in their entirety without getting confused by all the different versions, the staff-lawyers basically said they didn’t have a final version created yet, and if we figured it out, could we please send them a copy. This is not a joke.

The changes did go into effect January 10, 2014, and even though the changes to the mortgage landscape might still be confusing, do not panic.

The US government has written some mortgage underwriting guidelines into federal law in order to make sure that borrowers have the “ability to repay” their mortgages. These guidelines are collectively known as the Ability-to-Repay (ATR) and the Qualified Mortgage (QM) Rules.  Generally, mortgage companies are now only allowed to originate mortgages that fit into these rules.

The one major difference between the new ATR guidelines and the old lending guidelines is that non-agency and non-government loans now have a maximum 43 percent debt ratio. Although the ATR means a new 43 percent debt-to-income (DTI) ratio, not all loans, as originally feared, fall under their lowered debt-to-income limitations. Most Agency or Government Loans which includes Fannie Mae, Freddie Mac, the Federal Housing Administration, the U.S. Department of Veterans Affairs and the U.S. Department of Agriculture/Rural Housing Service are currently all exempt from having to comply with the 43 percent debt ratios. Even though most of these groups have already said they do not plan to change their maximum debt-to-income from current requirements, it is still prudent for you and your mortgage professional to work together to maximize your purchasing power and look at ways to lower your debt-to-income ratio.

Here are a few ways we’ve helped clients lower their debt-to-income ratio:

  • Lowering down payment and using the funds to pay off other debt which lowers the overall debt-to-income
  • Adding a co-borrower to help qualify
  • Strategic Tax Planning to increase purchasing power
  • Looking into alternative loan programs with lower interest rates
  • Making a larger down payment with the help of gift funds
  • Buying down the interest rate to lower the monthly payment

Either way, borrowers should seriously evaluate these options with an experienced Mortgage Planning Specialist who is skilled in this area.

Susan Bonanno is a senior loan consultant at Broadview Mortgage. She has eight years of experience in the loan industry and specialize in working with first time buyers. For the past four years, Ms. Bonanno achieved the Top Loan Officer award from Broadview Mortgage. Out of 17 branches, she had both the highest dollar volume and highest total number of loans closed. 

Kelly Marsh is the branch manager of Broadview Mortgage in Santa Barbara. Over her more than 16 years in the mortgage industry, Ms. Marsh has closed about 4,000 loans totaling more than $1 billion. She has received the Scotsman’s Guide Accomplishment and is ranked 44th nationwide by Origination News.

 




A Local Family’s Home Buying Success Story

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Home sweet home for Ivan and Cenorina

Two years ago, when Cenorina and Ivan first thought of buying a home, all of their offers were rejected. No one could seem to help them work out a deal. Then they found out about Coastal Housing Partnership and how their employee benefit works.

The couple attended a Coastal Housing Partnership Home Buying Seminar and then connected with a real estate agent from Coastal Housing’s network services partners.

“Education is huge. Without it we wouldn’t have had that extra push… It motivated us!,” the couple shared.

Through their employer’s Coastal Housing Partnership housing benefit, Cenorina and Ivan were able to purchase their home with less than a 20 percent down payment. They saved more than $3,000 in closing costs, and are now paying less each month than they would to rent.

“We would say to anyone who thinks home ownership is impossible: With knowledge and planning, it’s right around the corner, but we could not have done it ourselves,” Ivan and Cenorina shared.




Get Back Into the Home Buying Market

The following blog post was written by Sr. Mortgage Consultant Austin Lampson of OnQFinancial in Santa Barbara.  OnQFinancial will be one of the Exhibitors at our Home Buying Fair on March 1st from 10am-3pm at Earl Warren Showgrounds. Thank you Austin for sharing your expertise and insights!

Get Back Into the Home Buying Market
Many residents of the Gold Coast experienced hardships during the recent economic downturn that put them behind on their housing payments. Some of us had to declare bankruptcy, take a short-sale or unfortunately may have been foreclosed upon. Yet did you know that you may be eligible to be back in the purchase market sooner than later?

Lenders are lending to you!
We just closed a transaction for a client who had a short sale two years ago. She was able to enter into contract on a new home just days after the two year anniversary and obtain a Conventional, 30 yr. Fixed rate loan. Other options may be available depending on your personal circumstances, needs and goals.

Want to learn more?
Come to the Coastal Housing Partnership Fair on March 1st for more details on this topic and learn other great information about our current housing market.

www.coastalhousing.org/home-buying-fair/

Austin Lampson
onQFinancialSantaBarbara

 

Sr. Mortgage Consultant, NMLS # 517060
NMLS # 5645
1332 Anacapa St. Ste. 110; Santa Barbara, CA 93101
Phone:  805.335.8200   
austin.lampson@onqfinancial.com     /    www.austinlampson.com

Equal-Housing-Lender