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February 26th, 2017 2:54 PM

Dear Friends,
The mortgage industry has changed dramatically over the past several years. While underwriting guidelines have become stringent due to the financial downturn during the years that began in late 2007, our peers are noticing an upbeat in loan approvals! A common sense approach and the ability to garner documentation in a more streamlined and quicker method, has created confidence with all of the principals involved in the processing of a loan request.

Mortgage rates continue to be competitive and are still at historic lows, while maximum loan amounts have risen to accommodate those borrowers seeking to purchase or refinance their homes as their properties have risen in appraised values.

The newest loan limits for conventional loans for the State of California are as follows:

Minimum Loan Amount for a Single Family Residence is $424,100 - $636,150 depending on the County where the subject property is located

2 Units $543,000 - $814,500

3 Units $656,350 - $984,525

4 Units $815,650 - $1,223,475

The last increase in base loan amounts was in 2006. These new guidelines will help many borrowers as mortgage rates continue to be competitive.

Nevertheless, in order to apply for a purchase or refinance loan, it is best to take the time to be prepared for the information and/or the documentation any processor or underwriter will request.

The items needed for submission of your loan includes the following:

1. Loan Application

2. Credit Authorization

3. 2016 and 2015 1040's - All Schedules

4. 2016 and 2015 W2's

5. Most current Pay Check Stubs showing Year To Date earned income

6. Last 2 Months Bank Statements for a Refinance or for a Purchase detailing the funds earmarked for the down payment 

7. Current Mortgage Statement for a Refinance

8. Current Tax Property Record for a Refinance

9. Homeowners Insurance for a Refinance

10.  For purchases, the processor would require a copy of the Purchase Agreement, Escrow Instructions and a copy of the Deposit Receipt

These are the items that will help the processor greatly in expediting a loan file for approval.

As a Licensed Salesperson and a Mortgage Loan Originator, any individual taking conventional loan applications must attend classes yearly, to review the most current laws, changes in underwriting procedures and any Real Estate trends in California or across the country. One of the topics explored is the prevalence of mortgage fraud. This is truly disconcerting, as I've come across all kinds of misrepresentations in over 35 years of originating loans. The instructor also made students aware of key provisions in Civil Codes, Fair Credit Reporting notices and the responsibility to perform our duties in an ethical manner.
We at MoneyTeam are excited at the prospect of assisting you in your financial plans. Please contact our office at your earliest convenience, if you have any questions or concerns in qualifying for a new purchase or a refinance of your home.

The photograph above is the Thomas H. Gale house located in Oak Park, Illinois, a suburb of Chicago and built in 1892. We love the homes constructed by architect Frank Lloyd Wright! Many times you will find FLW homes on our website front page.

Thanks again for your continuous support.

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Posted by Jesse Dorado on February 26th, 2017 2:54 PMPost a Comment

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