You’ve found the house you’ve decided you’re committed to buying. To show the seller that you are serious about your offer, you decide to put down an earnest money deposit. How do you know how much you should put down and what determines the rate? There is no “right” answer, as it depends on a variety of factors: [Read more…]
Using tranches is a good way to move the risk of investments and prepayment penalties, but should you rely on them? The simple answer is no, you shouldn’t rely on them entirely. However, that doesn’t mean that you should shy away from them altogether. By knowing the risk of tranches, you can smartly invest and know what you’re committing to. Here what you need to remember: [Read more…]
You have been searching the market for the perfect home and found one that is for you. If you are serious about the offer, you will give the buyer a deposit of earnest money that they will hold onto until your offer is accepted by the seller. But what exactly is earnest money and how is it used? [Read more…]
When you enter a real estate contract, you have a due diligence period to take advantage of backing out of the contract without any consequences. But what if you break the contract after the due diligence period has expired? By design, real estate contracts aren’t supposed to be easy to break. After all, if they were, then they’d be useless as anyone would not honor the deal. Here’s what you could expect if you break contract: [Read more…]
As a loan officer, you will have clients come to you for advice about restructuring their loan. Also known as loan modifications, restructuring a loan makes the current loan more affordable for the borrower and they can possibly avoid foreclosure.
Restructuring verses Refinancing
First, you must understand that restructuring a loan is not the same as refinancing a loan. When you refinance a loan, you are essentially creating a new loan for the borrower. Then, the new loan pays off the old one .On the other hand, restructuring a loan means the existing loan is kept, but modified for lower payments so a homeowner can afford to pay their monthly statements. [Read more…]
You have decided to get down payment assistance in the form of a grant. But how do you get a grant and what are the qualifications? It’s easier than you’d think, but has some stipulations.
Talk to Your Lender
It seems like a straightforward piece of advice, but many people don’t talk to their lender about grant programs because they are unaware they exist or don’t think they qualify. Your lender can guide you through the process and help you find a program that is right for you. [Read more…]
Simply put, a re-performing loan is a loan that was previously considered non-performing and you began making payments on it again. Re-performing loans are also called “scratch and dent” loans because it has a performing issue or is defective.
Even if you have not repaid the missed payments your loan will still become re-performing—just remember that you will still need to repay what you missed. Whether you are a home buyer, owner, and seller, re-performing loans can affect you in different ways. [Read more…]
When you are helping a homebuyer purchase a home, you will come across what is known as a due diligence period in your client’s real estate contract. Also called a study period, this essential part of the real estate contract is designed to protect the interests of both the buyer and the seller.
The due diligence period helps your clients: [Read more…]