Tips to Remaining Calm During the Loan Process

Stress is a buzzword these days. It seems like each month a new study comes out confirming that stress contributes to a variety of mental and physical issues such as high blood pressure, anxiety, insomnia and premature aging. Aside from the obvious "life or death" scenarios one might encounter once in a blue moon, it's everyday situations such as job interviews, sickness, family decisions or financial hardships that really "stress" us out. 

It's a common statement that buying a home is one of the biggest investments a person will ever make so it's no surprise that it is an event that often causes a great deal of stress. Add to the fact that most people need financial help via a mortgage loan and suddenly, you are not only dealing with the stress of picking the "right" home but also qualifying for financing to make it "your"  home. And just when you think the stress is over, rates drop and your in the market to refinance and go through the loan process all over again.

Part III: Your Refinance FAQ's Answered

To continue our 3 part series about Home Mortgage Refinancing, we want to point out that everyone has a different financial picture, unique goals and specific reasons why a refinance may or may not be the right course of action. Always seek out a mortgage professional to discuss your scenario so that you can make the best decision for you and your family.

Click here to read Part I: Should I Refinance My Home?

Click here to read Part II: Refinance Checklist

We've covered the questions you might have about whether you should refinance your home and we've given you a checklist of important documents and info you should have on hand but just to make sure you're confident - we're answering many commonly asked questions about refinancing.

Spotlight on the Irvine Office

The Midwest Equity Mortgage - Irvine office serves Orange, Los Angeles, San Bernardino, and Riverside Counties as well as other areas across the state of California. We are available for appointments in office, over the telephone, or in your home or place of business.

John Busher, Branch Manager

John Busher

John graduated from the University of St Thomas in St Paul, Minnesota in 2000 with a degree in Business Management. He began his career as a Personal Banker for a Fortune 500 Bank, moved up the ranks and accepted a promotion and transfer to Southern California in 2003. A year later he moved into the Mortgage Industry in San Diego. He was a top producer for a regional mortgage banker from 2003 until 2011. He joined the team at Midwest Equity in 2011 and was quickly promoted to Branch Manager. John’s 12+ years in the financial services arena make his knowledge invaluable as he pursues helping families save money. John and his wife Brenda, have three children, Jake, Nick and Mike.

Part II: Home Refinance Checklist

To continue our 3 part series about Home Mortgage Refinancing, we want to point out that everyone has a different financial picture, unique goals and specific reasons why a refinance may or may not be the right course of action. Always seek out a mortgage professional to discuss your scenario so that you can make the best decision for you and your family.

Click here to read Part I: Should I Refinance My Home?

Getting Organized

Now that you have considered whether a mortgage refinance is right for you - we've put together a  Checklist to help get you ready to Refinance your home loan. Like most of us, a home refinance is easiest when the process goes smoothly and quickly. Choosing a qualified mortgage professional will help ease your stress but there are certain documents that you will need to gather and submit to make sure the lender has a complete refinance application.

Spotlight on the Chesterfield Office

The Midwest Equity Mortgage - Chesterfield office serves the surrounding counties as well as other areas across the state of Missouri. We are available for appointments in office, over the telephone, or in your home or place of business.

Scott Carpenter, Branch Manager

Scott Carpenter

Scott graduated from Hannibal-LaGrange University in Hannibal Missouri in 1994, where he was a student athlete and played on the basketball team.  After graduating with a BS degree in Business, he pursued a career in consumer finance, and in 1997 transitioned his career into Mortgage Banking.  Scott has been a leader in the St. Louis mortgage industry for over seventeen years. He and his wife Nicole have one son: Haden, and reside in Wildwood, MO.

Part I: Should I Refinance My Home?

To start off this 3 part series about Home Mortgage Refinancing, we want to first point out that everyone has a different financial picture, unique goals and specific reasons why a refinance may or may not be the right course of action. Always seek out a mortgage professional to discuss your scenario so that you can make the best decision for you and your family.

Thinking of refinancing? Grab our free worksheet to quickly calculate your LTV and assess all of your options here »

How is a Credit Bureau Score Calculated?

Whether you are looking to open a credit card, finance a car or buy a home...you've probably noticed that your credit score is important. A credit score is essentially used to assess how likely it is that a borrower will repay a loan. The score measures the relative degree of risk that a potential person represents to a lender or investor and is based on several areas of information (however, because of several laws against discrimination - it is not based on gender, race age or zip code.)

Credit Bureaus & Score Range

Fair, Isaac Credit Bureau scores range between 300 to 850 points - the higher the score, the less risk associated with the borrower. Below are the three national credit data repositories that contribute to your score:

• Equifax - 800-685-1111
• Trans Union - 800-888-4213
• Experian - 800-397-3742

Each of these bureaus may offer you a slightly different credit score depending on the data within their own credit profile. Keep in mind that a score is based on all credit-related data - not just negative data. 

Spotlight on the St. Louis Office

The Midwest Equity Mortgage - St Louis office serves St. Louis, St Charles, and Jefferson Counties as well as other areas across the state of Missouri. We are available for appointments in office, over the telephone, or in your home or place of business.

Scott Carpenter, Branch Manager

Scott Carpenter

Scott graduated from Hannibal-LaGrange University in Hannibal Missouri in 1994, where he was a student athlete and played on the basketball team.  After graduating with a BS degree in Business, he pursued a career in consumer finance, and in 1997 transitioned his career into Mortgage Banking.  Scott has been a leader in the St. Louis mortgage industry for over seventeen years. He and his wife Nicole have one son: Haden, and reside in Wildwood, MO.

Common Title Insurance Questions...& Answers!

If you've ever purchased a home, it's possible you've heard title insurance discussed however there is often some confusion about this vital part of the home buying process.

What Does a Title Company Do?

When you make an offer to purchase a home - how can you be sure that there are no issues or problems with the home's title? How do you know that the seller actually owns the property? A title company will run a title search on the property to answer these questions. 

Lenders require a title search to prevent fraudulent sales. A title search will ensure that the seller is the owner of the home and attempts to uncover an "encumbrances" that may be on title. Encumbrances include any liens (legal claims) against the property filed by either creditors in an attempt to collect unpaid bills or by the IRS for unpaid taxes. Contractors liens, unpaid homeowner dues and unpaid child support are all examples of other possible issues. These encumbrances must be resolved (paid) either before or at closing. 

The title professional will search the public records which involves reviewing land records that go back many years. More than one third of all title searches reveal a title problem that title professionals will need to fix before you can close. This should not only be important to lenders but also to buyers, as in many cases, encumbrances follow the property - not the owner.

Spotlight on the Chicago Office

The Midwest Equity Mortgage - Chicago office serves all of Chicagoland as well as outlying areas in Cook, Lake and Dupage counties as well as the rest of the state of Illinois. We are available for appointments in office, over the telephone, or in your home or place of business.

Joe Paterna, Branch Manager – Chicago

Joe Paterna

Joe received his BA from Lake Forest College and went on to achieve a MA from the University Of Massachusetts. Joe grew up in Boston where he excelled on the handball court and is a member of the South Boston Hall of Fame. He now serves as the Branch Manager of our Chicago office using his experience and knowledge to promote the Midwest Equity vision. Joe and his wife, Carrie are happy to be back “home” in Chicago.Joe and his wife , Carrie reside in Oak Park and have one child, Angelina.

Joe oversees all daily operations of our Oak Brook Office. Joe has extensive mortgage banking experience and has originated hundreds of loans himself. Should you have any questions about your loan application which cannot be answered by your loan officer, or should you desire to reach out to Joe about anything, he is available anytime. Joe can be contacted at (630) 537-1701. 

4 Topics to Discuss with Your Loan Officer

You’re ready to buy or refinance – but whether this is your first or fourth loan – you may find that working with a loan officer to be confusing and difficult. Having a clear understanding of what you want and how to communicate with your mortgage professional is critical for success. To keep everything running smoothly – make sure you discuss the following topics with your loan officer.

1 - Communication Style

Mortgage professionals will communicate with you in a variety of ways including by phone, email and text. Some are tech savvy and others prefer traditional methods. The point is to be clear about what YOU prefer. If you respond more quickly to text messages versus voicemail - tell your loan officer. Often times, there are time sensitive issues that arise during the loan process, so it will make everyone happy if your loan officer knows how to get questions answered, additional documentation etc. in a timely manner.

Spotlight on the Kansas City Office

The Midwest Equity Mortgage - Kansas City office serves the Kansas and Missouri areas. We are available for appointments in office, over the telephone, or in your home or place of business.

Steven Klodzin, Branch Manager – Kansas City

Steven Klodzin

Steven began his career in the mortgage industry in 2005 and has a vast amount of knowledge and experience in several aspects of the mortgage process. During the past decade he spent several years as Vice President for a successful mortgage company and was heavily involved in operations as well as originating loans. Steven’s experience is a key asset to his clients when it comes to getting their loans closed quickly and efficiently. Steve and his wife Jaclyn reside in Lees Summit, MO.

Steven Klodzin oversees all daily operations of our Overland Park office. Steve has extensive mortgage banking experience and has originated hundreds of loans himself. Should you have any questions about your loan application which cannot be answered by your loan officer, or want contact Steve direct for anything, he is available anytime. Steve can be contacted at 913-214-9701.

Meet Our Mortgage Professionals (Click their name to learn more)

[NEWS] Freddie & Fannie to Offer Mortgages Requiring Only 3% Down Payment

CNN Money recently reported that the "3% down payment mortgage" is making a comeback!

"In an effort to open up lending to more low-income and first time home buyers, Fannie Mae and Freddie Mac announced Monday that they will start backing mortgages with down payments of as little as 3% of the home's price." (Source CNNMoney)

Before you get too excited - it's important to realize that borrowers will need to meet strict guidelines to qualify.

How to Repair Your Credit Score

Fact: Poor credit history and a bad credit score can have a serious impact of your life.
No one wants bad credit. Sometimes mistakes happen. Sometimes factors like medical bills, job loss and tragedy influence our financial profile in ways we never could have predicted. Bad credit can happen to anyone.

But now what? If you’re wondering how to repair your credit score, you are not alone. The widespread decline in credit scores has been one of the side effects of the recession but this doesn’t mean that you can’t pro-actively take the steps to start repairing your credit.

Factors that Damage Credit

First let’s clarify what can lower your credit score and damage your credit profile.

• Excessive Debt: If your credit cards are maxed and you have several loans, your debt profile is probably contributing to your low score
• Late Payments: The credit bureaus note any 30, 60, 90 & 120 day payment lates. It is essential that you pay your bills on time.
• Dormant Credit: A dormant credit card is an account that has infrequent or no use. In some cases, if an account has no activity for a period of time, issuers may close the account which revokes future charging privileges. Dormant accounts may not have additional debt but they also don’t help your credit score.
• Collections: If you fail to make a payment or pay off your account – the creditor may send your account to collections. This severely affects your score. Make sure to work closely with your mortgage or credit professional regarding paying off collections. Note: Collections on federal loans such as student loans will prevent you from getting financing from most (if not all) lenders.

[NEWS] Federal Reserve Study Says It's Getting Easier to Qualify for a Home Mortgage

Yahoo News (Homes Division) reported this morning that buying a home is actually getting easier. They add that if you've gotten turned down for a mortgage in the past few years, now may be a good time to re-apply.

"That’s because, according to Ellie Mae research, in July 2014, 67 percent of all mortgages applied for closed. That’s way up from six months before in January 2014 and also in July 2013, when the rate of mortgages that closed were at just 53 percent at both times." (Source: Yahoo Homes)

According to the president of Ellie Mae, Jonathan Corr - this is due, in part, to lenders easing their qualifying standards.

Yahoo goes on to point out three key reasons the industry is getting more flexible:

How Do Mortgage Interest Rates Work?

Whether it’s a home, auto, business or personal loan – odds are you've had to deal with interest rates. Essentially, the interest rate determines how much it will cost you to borrow money so naturally the higher or lower the interest rate quoted will help determine whether you should agree to the loan. When it comes to home financing, understanding the constantly change interest rate landscape can be confusing. We’re here to help make it easy!

Your Level of Risk Plays a Role

If you've ever seen a mortgage ad – whether on TV or in print – you’ll notice how the company points out low rates in big bold letters. However sometimes that low rate will only be offered to a select group of people – why? When you apply for a home mortgage, the lender will base your rate on your level of risk. If you have a high credit score, lenders will quote you a better (lower) rate. If you have a poor credit score, your level of risk is higher and for the same loan, you might have to pay a higher interest rate.

Spotlight on the Milwaukee Office

The Midwest Equity Mortgage - Milwaukee office serves the entire state of Wisconsin. We are available for appointments in office, over the telephone, or in your home or place of business.

Bill Livesey, Branch Manager – Milwaukee

William (Bill) Livesey

Bill attended the University of Wisconsin-Milwaukee where he graduated with a BA degree in Finance in 1989. He spent 13 years in the Finance and Credit industries, where he held numerous management positions. In early 2004 he transitioned into the Mortgage industry. He spent several years as a Mortgage Consultant, and is currently the Branch Manager of our Brookfield office. Bill’s twenty plus years of experience are a great asset to his customers when finding options to save them money. Bill and his wife Lisa reside in Greenfield, Wisconsin, along with their four children Joseph, Justin, Tyler, and Amanda.

How Does Mortgage Loan Underwriting Work?

Whether looking to buy a home or refinance, you will likely apply for a mortgage loan and encounter about the underwriting process. Lenders and loan officers might mention “underwriting” but few home-owners and buyers might actually know exactly what this step is and how it impacts their ability to secure financing.

What is Underwriting?

Underwriting is a process that allows lenders to determine if you qualify for financing based on your level of credit risk. An underwriter is a skilled in-house person who looks at every aspect of your financial profile to determine if its possible and likely that you can repay the debt. The underwriter will consider your mortgage application and verify the information you’ve submitted. This can include verifying with your employer that you are currently working. They may also compare bank statements and tax records to ensure you have substantial income to repay the loan.

Spotlight on the Miami Office

The Midwest Equity Mortgage - Miami office serves South Florida and other areas across the state. We are available for appointments in office, over the telephone, or in your home or place of business.

Phil Engel, Branch Manager

Phil Engel

Phil began his career in mortgage banking by trading mortgage back securities on Wall Street. From there, he represented major Wall Street investment firms like Wells Fargo and Merrill Lynch before transitioning to the retail end of the industry. Phil is proud to be the father of two grown children and a baby grandson.

Phil oversees all daily operations of our Miami Office. As a producing manager, Phil keeps on top of the changing market and is a valuable resource to the office. Should you have any questions about your loan application which cannot be answered by your loan officer, or should you desire to reach out to Phil about anything, he is available anytime. Phil can be contacted at 305-384-1800.

How Long Does the Loan Process Take?

The time it takes to secure a home mortgage will vary based on the TYPE of mortgage, homebuyer/homeowner scenarios and each individual lender’s processing schedule. According to HomeGuides.com – it’s reasonable to assume that a typical home loan will take 4-6 weeks from application to funding. Certain loans may take longer to reach closing.

Complete An Application

A smooth process starts off with a strong start! It will be easier for your mortgage professional to estimate a closing date once you fully complete an application. This is more than just submitting a Form 1003 – you need to also submit income verification (usually two recent pay stubs and the past 2 years’ W-2 or 1099s) along with any additional documentation that you lender may require for your specific situation. Bank statements, proof of down payment funds, purchase agreements and necessary letters of explanation (LOE) may be required to formally complete your application.