images/nav-but-loan-programs-lm.jpg images/nav-but-tips-programs-lm.jpg
images/nav-but-home-lm.jpg images/nav-but-realtor-info-lm.jpg
images/nav-but-contact-lm.jpg images/nav-but-blog-lm.jpg
insider-tips-banner-lm

Most people obtain only a few real estate loans throughout their lifetimes. They're not experts in mortgage loans and whatever they learn in the course of closing a loan is long forgotten by the time the next one comes along.

Here's a collection of expert mortgage tips that cover questions most borrowers don't ask and some lenders don't bother to volunteer.


COMMISSION VS. SALARY
WHO DO YOU WANT REPRESENTING YOU?

Loan representatives come in two basic flavors: salaried and commissioned. Borrowers want to save money so it's not surprising many believe any commissions connected with their home loans mean higher costs. Not only is this assumption basically false, it fails to account for human nature and the amount of work it can take to close and fund a home mortgage.


A salaried loan representative gets the same weekly paycheck no matter how many loans he or she funds. A commissioned loan representative makes nothing unless the loan funds and closes. Since home loans are commodities with prices set in the Money Market, it is foolish to expect lenders to pass on any monies saved by paying salaries instead of commissions.


The role of a loan representative is facilitator and problem solver. Closing loans takes a lot of time and work. Some loans are easier to close than others. Some problems are easy to identify and fix, others come out of the blue at the last minute. You have a lot of time invested in researching and finding the perfect home and the right price. Or, you have a lot of money on the line refinancing. How comfortable should you be relying on someone who gets paid even if your loan doesn't close?


Real estate loans involve large amounts of your money and life altering decisions. It pays to have the experience of a loan professional on your side. Preferably one who is motivated to do what it takes to help you accomplish your goals.

Non-Warrantable Condominiums and
Home Owner Associations Under Litigation

When shopping for that dream condominium, it's important to realize the condo development has to qualify for the loan just like you. There is specific criteria that determines if the mortgage can be sold to Freddie Mac and Fannie Mae. Since the majority of loans are sold in the secondary market, The warrantability of the development often determines loan approval. Nothing can be more frustrating than qualifying for a home loan only to find out the condominium project doesn't qualify.


Examples of issues that can make a development non-warrantable include less than fifty percent owner occupancy (too many rented units in the project), more than ten percent of the project belonging to one person or company (one person has too much control over the home owners association) and more than fifteen percent delinquency which includes non-payment of HOA dues, work orders and fines.


It's important to understand that the status of a development can change. Owner occupancy rates, delinquencies and ownership percentages can and do change overnight. Getting approved could be as easy as delaying closing one week. Home Owners Associations involved in lawsuits can also stop loan approvals.


Don't let HOA litigation and warranty issues stop you from closing your condo deal. It's important to work with a lender and a loan representative who has experience and knowledge to deal with these potential problems. Contact Las Vegas mortgage specialist Adan Saldana, C.E.O. of Laser Mortgage, today to find out what's possible.


HOME MORTGAGE PRE-QUALIFICATION

Get An Independent Assessment

Before you spend days looking at properties, be sure to call Adan Saldana for a home loan pre-qualification. A quick and accurate pre-qual not only sets realistic expectations, it helps to identify you as a serious buyer in multi-offer situations. Pre-qualification can also identify deal-killers that can often be resolved before getting into a transaction.


Most borrowers don't have the knowledge required to provide the relevant and complete financial information needed to make online pre-qualifiers accurate. There is no substitute for a one-on-one interview by a home-loan expert who knows what's required for underwriting a mortgage.


Talk to a Mortgage Pro

Adan Saldana, C.E.O of Laser Mortgage has the experience to deal with problems that can crop up in the loan qualification process and give you the best chance of closing the deal on the home best for you.


SHOULD YOU LOCK-IN OR LET IT FLOAT?

Like stock prices, mortgage rates are subject to market fluctuations. A quoted rate isn't guaranteed and may change by the time a loan is ready to fund 30 or sixty days down the road. A quote is really the right now rate that's only valid if a loan is ready to fund right now.


Interest rate locks protect borrowers from rate increases but at the cost of not getting a lower rate (unless the locks have a one time float-down provision).


Borrowers who are maxed-out on their approvals should definitely consider locks as any rate increases could kill refinances or home purchases. Others can feel free to play the market depending on their risk aversion and financial reserves. The lock-in charge is also part of the decision process.


Find out more about interest rate locks and how they can benefit you by contacting Adan Saldana today.


I WANT A 15 YR BUT CAN'T QUALIFY

Home loans (mortgages) amortized over 15 years carry lower interest rates than home loans amortized over 30 years. 30 year mortgages are much more popular because the monthly payments are lower.


Example $200,000 Home Loan


30 Year Amortization at 4.125% interest = $969.30 per month


15 Year Amortization at 3.500% interest = $1,429.77 per month


The 15 year payment is almost 50% higher than the 30 year payment so it's easy to see why 30 year home loans are so popular. But the 15 year mortgage has a lower interest rate and 50% fewer monthly payments.


There are many borrowers who can afford to make the higher 15 year monthly payment but mortgage underwriting guidelines stop them from qualifying for the shorter loan with a lower interest rate.


The following basics can save you thousands of dollars in interest and cut the number of your mortgage payments.


First, part of each monthly payment goes to principal pay-down and part goes to interest.


Second, the interest is calculated on the remaining balance of the loan each month so even though the payment stays the same, you pay less interest and more principal every month.


Third, if the loan has no prepayment penalty (the majority of 15 and 30 mortgages do not) you can choose to increase your monthly payment at anytime as often as you want.


If you can afford $1,429.77 per month but can only qualify for $969.30 per month, go ahead and get the 30 year loan and just make the 15 year payments. The numbers may surprise you.


30-15-chart.jpg
spacer.jpg

In the above example, by making the 15 year payment on a 30 year home loan you save $76,659 in interest. And, you'll pay off that 30 year mortgage in 15 years and nine months.


Not bad if you can't qualify for a 15 year loan but you can afford the payments on a 15 year loan!


The interest rates used in the example above and the spread between them is for illustrative purposes only. Contact Adan Saldana for current 15 and 30 year home loan rates and to prequalify for a mortgage.

broker-news-banner-lm.jpg
saldana-call-bar-lm.jpg
Schedule An Office Visit

@ 2024 ADAN SALDANA, NMLS 214926

equal-housing-lender-292x165

LASER MTG, LLC DBA LASER MORTGAGE CORPORATE NMLS 2012640 LOCATED AT 670 S GREEN VALLEY PARKWAY STE 250 HENDERSON NV 89052


NV - LICENSED BY THE NEVADA DIVISON OF MORTGAGE LENDING LICENSE # 5191;
CA - LICENSED BY THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION UNDER THE CALIFORNIA RESIDENTIAL MORTGAGE LICENSING ACT LICENSE # 60DBO-122821
FOR ALL LICENSES VISIT HTTP://WWW.NMLSCONSUMERACCESS.ORG


ALL LOAN PROGRAMS, TERMS AND INTEREST RATES ARE SUBJECT TO CHANGE AND/OR DISCONTINUED WITHOUT ADVANCE NOTICE. EQUAL HOUSING LENDER


scout-220