All articles about Loan

Can I use Room Mate Income to Qualify for a Mortgage?

Questions you really should be asking


One of the phenomena of the Great Recession is that young people are turning to family members and other young professionals to share housing.

A question that was recently presented to me by a client wanting to buy the SINGLE FAMILY home they have been renting as their primary resident:

“Can I use roommate income to qualify for a mortgage”?

Answer: It Depends Continue reading Can I use Room Mate Income to Qualify for a Mortgage?

8 Basic Requirements of the Ability to Repay Mortgage Rule

Regardless of whether you believe that the so-called Great Recession was caused by reckless and irresponsible mortgage lending or government perversion of free markets by encouraging banks to make risky mortgage loans to people with questionable credit and practically no down payment or a combination of the two, one thing is irrefutable;

The government has created a whole new bureaucracy called the Consumer Protection Financial Bureau (CFPB) whose authority is far reaching and made possible by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act).

Dos & Don’ts During Your Mortgage Process

  1. Do:

Dos and Donts During the Loan Process


  • Make loan and other debt payments on time, especially over the months leading up to the filing of your mortgage application. It sounds simple, but every 30-, 60- or 90-day delinquency on a loan or credit card will reduce the credit score the lender ends up considering as part of the loan file. That score, in turn, will determine the interest rate you get on your home loan. Continue reading Dos & Don’ts During Your Mortgage Process

The Trouble With Trial Mortgage Loan Modifications

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These days there seems to be no shortage today of people or politicians angry at mortgage companies.  Most however tend to be  customers of the nations five largest mortgage servicers;

Bank of America, Wells Fargo Home Mortgage, JP Morgan Chase & Ally Financial.

The source of anger tends to be  focused on  foreclosure, short sale request or loan modifications aka work-outs that never seem to get worked out and result is foreclosure. Continue reading The Trouble With Trial Mortgage Loan Modifications

What is Predatory Lending?

Predatory Lending Considerations

Subprime lending is not synonymous with predatory lending, and loans with the features described as Subprime are not necessarily predatory in nature. However, institutions should ensure that they do not engage in the types of predatory lending practices discussed in the Expanded Subprime Guidance. Typically, predatory lending involves at least one of the following elements: Continue reading What is Predatory Lending?

What Gives My Mortgage Company the Right to Hold My Insurance Claim Check?

The Escrow Department will likely be the same department that will cash and hold your insurance claims check. Don’t be surprised if your bank/lender actually place a hold on the check for up to five business days due to the protential for fraud given the number of mass losses that have occurred recently.

What is a Mortgage or Deed of Trust?

To understand what is a mortgage is you first have to understand the etymology {history}  of the word mortgage.

It is said that the first mortgage ever recorded dates to 1190 in England. Common English Law provided protections to the grantee (lender) of that mortgage loan and these protections granted the lender in the borrowers property.

At that time most pledges or loans were what was known as “Living Pledges”  which were just that pledges of possessions while one was living until the debt was paid. Continue reading What is a Mortgage or Deed of Trust?

5 Reasons NOT to Buy a Home

5 Reasons NOT to Buy

There is no shortage of BLOGs by Realtors and Lenders alike that scream at you the top reasons you should buy a home now, RIGHT NOW and yes I would be remiss if I didn’t point out that I too have a post just like that on this very site.

Five Great Reasons to Buy a Home today

But you didn’t come here to read what you already know, you came here to find out what you don’t know and that is:

WHY YOU SHOULDN’T BUY A HOME TODAY. Continue reading 5 Reasons NOT to Buy a Home

What is Private Mortgage Insurance?

I have PMI?

What Private Mortgage Insurance and why do I have it?

Years ago when your grand parents bought a home they saved each extra penny they could until they had enough for a down payment that was equal to at least 20% of the  price of their dream home.

More likely your grand father was likely was  returning veteran of WWII or the Korean War and then they used their entitlements benefits under the GI Bill and probably bought their firs home with a VA loan with no money down.

For the rest of us who can’t put together a tidy sum of 20% in cash for a down payment on a home which in  Raleigh could be as much as $35,000 there’s Private Mortgage Insurance (PMI).
Private mortgage insurance exists in a variety of forms.

Here is an example of just a the most common;

Continue reading What is Private Mortgage Insurance?