 Sandy Tolen, a loan processor on our team, is here today to give you a look at what she does with us. This is her introductionCheck out the next Agent MastermindApply OnlineMeet Sandy Tolen, a loan processor on our team. Sandy has worked with us for just over a year and a half, but has been in the mortgage industry for more than 15 years. As a loan processor, Sandy reviews documents provided by the borrowers to ensure that they meet underwriting guidelines. She also works directly with the underwriters throughout the process to help loans be approved. Sandy says that the most rewarding part of her job is helping people get into homes. Sandy notes, also, that it is a common misconception that all loans are the same. In her role, she encounters and handles a variety different circumstances. The most rewarding part about her work on our team, though, is being able to get people into homes. This is what she says is her favorite part of her job. If you have any other questions or would like more information, feel free to give us a call or send us an email, we look forward to hearing from you soon. 

Success Mortgage Partners - With Kristin Jamieson

What Is Sandy Tolen's Role on Our Team?

 Nadia Lokhnauth has been with us for about two years now. Here’s why she is such an important member of our team.Check out the next Agent MastermindApply OnlineToday we are excited to introduce you to another important member of our team at Success Mortgage Partners, Inc. Nadia Lokhnauth has been with us for about two years now as a junior loan processor. She has recently started placing all the orders for our appraisals while still processing loans, herself. She puts all the documents together and makes sure it gets sent to our underwriters for loan approval. When the loan initially comes back from underwriting, she also works with the title company in getting certain documents recovered and back to underwriting for final approval. The mortgage process isn’t as stressful as you think.One thing that Nadia wants people to know is that the mortgage process isn’t as stressful as you think. There are so many options and different programs available to borrowers, you’ll be just fine as long as you have the right lender helping you through the process. If you have any questions for us, don’t hesitate to reach out and give us a call or send us an email. Any time. We look forward to hearing from you soon. 

Meet Another Important Member of Our Team

 Crystal Harris is here today to talk a little more about the loan application process. Check out the next Agent MastermindApply OnlineIn our last video, we talked to Evelyn about the beginning of the application process. This time, we’re here with Crystal Harris to dig into the process a little further.Crystal has been with us for a little over a year, and this is her first job in the mortgage industry. After Evelyn gets applications sent out to clients, Crystal is responsible for helping you through the application process, answering any and every question you have. After the application is in, she is the one who will follow up with you and request a whole lot of paperwork. Be prepared for us to ask for a lot of information. It’s not going to be an easy thing to do to track down everything we need, but it will be worth it. The process is vastly different and more complex than it used to be, but it’s worth it in the end. The hard work is worth it in the end. After all your questions have been answered and you get your paperwork in, Crystal will make an appointment for you with Kristin where you can go over everything in further detail. Most people don’t know what the application process is going to be like and that’s why Crystal enjoys helping our clients by answering their questions, letting them know what to expect, and calming any fears they have. If you are interested in getting a loan application started or if you just have any questions, give us a call or send us an email. We look forward to hearing from you.

What Does the Mortgage Application Process Look Like?

Today we’d like to introduce Evelyn, the receptionist (and your first point of contact) at Success Mortgage Partners.Check out the next Agent MastermindApply OnlineEvelyn has worked at Success Mortgage Partners since September of 2016. As a receptionist, she is your first point of contact when you inquire about an application. She makes sure that you get the application and will answer your questions as well. “What I enjoy most is learning everything that I didn’t know before,” Evelyn says. “I have been able to soak in a lot of information about the mortgage process that I didn’t know before, so it’s been a really good experience so far.” “Kristin has a lot of knowledge and she will do everything she can to help you get a new home,” Evelyn adds. The sooner you send in your information, the better. One thing Evelyn thinks that everyone should know about the mortgage process is that the whole process depends on you. “We will do everything we can on our end,” says Evelyn, “But it really depends on when we get your information. The quicker you send us your information, the faster we can start the whole process.” If you have any other questions for our team, just give us a call or send us an email. We would be happy to help you!

Meet the Success Mortgage Partners Team: Introducing Evelyn

How can you have a loan amount that’s higher than the FHA limit in Lake County? Can a seller hold a small note for an FHA, like a second mortgage? Today we’ll answer both of these questions. Check out the next Agent MastermindApply OnlineIn the final installment of our series where we answer agents' questions, today we’re fielding a two-parter from Allison Wheatley of First Realty.First, she asks, “Someone said that the FHA loan limit in Lake County is $274,850; however, one of my buyers has a loan amount of $285,000. How does that work?”Secondly, she asks, “Can the seller hold a small note for an FHA, like a second mortgage?”To answer her first question, the FHA does set loan limits per county, and they’ll change based on what county you live in. The FHA loan limit in Lake County is $274,850, but that’s not the purchase price limit. People can purchase homes for however much they want, but the FHA has stated that they will not lend any more than the $274,850 limit in that county. FHA loan limits change based on what county you live in. For example, if somebody wants to buy a house that costs $300,000, that’s perfectly OK; however, they’re going to have to put down the extra $25,150 to bring the base loan amount down to the FHA loan limit in our county. To answer her second question, the FHA doesn’t allow interested party contributions such as seller-held second mortgages into the transaction. The only thing the sellers can do, per FHA guidelines, is help pay up to 6% in closing costs into the transaction.If you or your buyers have any other questions in regard to FHA loans or their requirements, please don’t hesitate to give us a call. We’d be happy to help! 

Answering Your Questions About FHA Loan Limits

Today we’re answering a question about credit score requirements for different types of home loans and how you can get your score up if you don’t qualify.Check out the next Agent MastermindApply OnlineToday we’re answering more questions from real estate agents about home loans. The question we’ll address today is, “What credit score is necessary for each type of loan?”At Success Mortgage Partners, our credit score requirements might be a little different than other places, but we do have very liberal credit score requirements for each particular loan type. These are the scores we will lend for by type: FHA: 600VA: 600USDA: 620 (if we are generating a credit score)Conventional: 620 There are things we can do for buyers on the borderline with credit score. There are things we can do for buyers on the borderline with their credit score, such as helping people have a higher balance on one of their credit cards. We can coach them on paying that balance down and working on credit rescore to get them to the point of qualifying.If someone is way out of the realm of qualifying, we don’t just turn our backs. We make referrals to credit repair companies that we’ve worked with who we know do a good job and care about their clients. Just like lenders, not all credit repair companies are created equal, so we’ve done a lot of research in this area.If someone you know has a score that’s below our requirements, don’t hesitate to reach out to us to start a conversation. If you have any other questions about lending guidelines or how we can help, give me a call or send us an email. We’d love to help!

What Credit Scores Are Needed for Loans?

 FHA 203K loans and conventional renovation loans actually have a lot in common. You should, however, know the two main differences if you're considering a loan with rehab costs built in.Check out the next Agent MastermindApply OnlineWe had another question from an agent that we wanted to address today. The question was, "When dealing with a repair loan, I have made it through an FHA 203K; however, is there a conventional product as well, and what are some of the differences?"This is a great question. Yes, conventional does have a repair loan like FHA's 203K, and it's called the Fannie Mae HomeStyle Renovation loan. One of the biggest differences between a 203K loan and a conventional renovation loan is the same difference between an FHA loan and a conventional loan. With FHA, the private mortgage insurance lasts for the life of the loan, no matter what your down payment is, as opposed to a conventional loan, where PMI will drop off when your loan balance reaches 78% of the purchase price. This is just one of the benefits of a conventional loan over an FHA loan.Additionally, FHA 203K loans only let you make repairs to the property itself; you couldn't add a pool or a fence since the repairs must be within the structure of the home. Conventional home renovation loans allow you to do pretty much whatever you want with the property, so you could install a pool or fence or update the landscaping. Other than two big differences, both loans basically parallel each other. Other than these main differences, both loan types basically parallel each other in terms of their guidelines. Both loan programs will lend on the total price of the project, meaning the price of the home itself and the cost of the repairs. With these two loan packages, some people get confused about the involvement of an HUD consultant. With the FHA 203K loan, an HUD consultant will only be required when the total cost of the rehab exceeds $35,000. This actually parallels the Fannie Mae HomeStyle Renovation loan in that if the total cost of the rehab project is more than $35,000, we are going to require an HUD consultant to oversee the project along with the general contractor making the repairs. Now, this is just a general breakdown of Fannie Mae HomeStyle Renovation loans in a nutshell. Feel free to share this information with your clients or anyone you know who is interested in a home renovation loan! A lot of different factors come into play with this type of loan, so if you have any questions at all about them, give me a call or send me an email. I would be more than happy to help you out.

Key Differences Between Home Renovation Loans

Qualifying for a USDA loan is different than qualifying for other loan packages since it's 100% financing. These are the basic requirements you'll need to meet to qualify for this loan.Check out the next Agent MastermindApply OnlineI recently had a Realtor ask for some clarification on USDA guidelines and how buyers can obtain approval for a USDA mortgage.There are three basic requirements for a USDA mortgage: The buyer has to buy in a USDA eligible area. Fortunately, Lake County and all surrounding counties are eligible.They have to meet household income requirements. It's not just the buyer's income, it's the household's income. If the buyer has children older than 18 living in the home, their income is considered, too, as well as a spouse that's not included on the loan. An easy example is that a family of one to four can't make more than $75,850 in our county, and a family of more than four can't make more than $98,000. Things can be deducted from this income, though, like child care or disability expenses for older adults. At Success Mortgage Partners, we require a credit score of at least 620. Since it's on the lower end, it's not crazy for people to qualify for, but we do need them to meet that benchmark. USDA allows financing for those with no credit score, but that doesn't mean a bad credit score. Some people have simply never used credit, and that's OK. You can do this by confirming things like rent and insurance payments. USDA looks over the last 12 months. If you have a 620 credit score but still have some derogatory credit like collections or late payments popping up, it can disqualify you.USDA is also very strict on their debt-to-income requirements. Since it is a 100% financing loan, they want to make sure the buyer can afford the payments, so they are more strict than some other loan programs. They will only allow us to use 29% of their income for their housing expenses and 41% total income for all of their other expenses. This helps prevent buyers from becoming house rich and dirt poor.The other potential deal killer for a USDA loan is if you own another house. With a USDA loan, you can't have two mortgages. However, there are some exceptions to the rule, like relocation from out of state that leaves you unable to sell your other house prior to your move, in some cases. Other than that, a USDA loan is just a conventional loan with FHA appraisal requirements; there can't be health or safety concerns with the home as far as the appraisal is concerned.If you have any more questions about USDA loans or the guidelines surrounding them, please don't hesitate to call or email me. I'd be glad to answer any questions you have!

How Do You Qualify for a USDA Loan?

There are plenty of special loan programs out there for first-time buyers. We are going to talk about a few of them today.Check out the next Agent MastermindApply OnlineWe’ve been getting some great questions from our viewers about mortgages lately, and we wanted to answer one of them today. This one comes from Ron who asks, “Which programs are out there for first-time home buyers?”The first thing we should mention is that all of the loan programs we’ve previously talked about, including VA, USDA, FHA, and conventional loans can all be used by first-time buyers. However, there are some additional programs out there that you can combine with your loan if you’re a first-time buyer.What we like to do with our first-time buyers is pair our USDA 100% financing loan with the MCC tax credit program, which is for first-time buyers as well as buyers who haven’t owned a home in three years or longer.The MCC tax credit program provides those buyers with up to 50% of their mortgage interest paid on their tax return each year they live in and own the house as a primary residence. The value of this credit can be up to $2,000, which could equate to a few mortgage payments that will be covered just by agreeing to own a home. This program helps swing the pendulum in favor of first-time buyers. One reason this tool is beneficial to our buyers is because, from an underwriting standpoint, it allows us to use the credit as income to offset your debt-to-income ratio. Salaries aren’t increasing at the same rate as home prices are, so a lot of our buyers are being priced out of the market. This program helps swing the pendulum in favor of first-time buyers.I hope this answers your question, Ron. If you have any other questions, don’t hesitate to reach out to us via phone or email. We look forward to hearing from you soon.

What Mortgage Programs Are Out There for First-Time Buyers?

What happens to your loan after you close? It gets sent to our post-closing department where they package everything up and ship it off to secondary market investors to be sold on the secondary market.Check out the next Agent MastermindApply OnlineAfter your loan closes, it gets sent to our post-closing department where they package everything up and ship it off to secondary market investors to be sold on the secondary market. This is done for a few different reasons.The first is that this is how we mortgage bankers make money in our industry. We sell your loan with hundreds of other loans that month. That’s how we get paid, but the benefit for you as the buyer, the borrower, is that you get access to the bigger banks and their interest rates. The second reason is that it allows us to keep our fees very low compared to our competition because we’re not having to charge origination fees or discount points to make money on your loan.After your loan closes, it gets sold on the secondary market. Does this change my payment or loan in any way? When your loan gets sold on the secondary market, the only thing that changes is where you make the payment to. Your interest rate, the loan balance, and the term of your loan has to stay exactly the same.Do you sell my loan to a bank of my choosing? Unfortunately, no. When we sell the loan on a secondary market, we have a group of investors that we at Success Mortgage Partners sell to. It may end up with your financial institution, but that institution may be one we’re either not approved to sell to or not actually involved in mortgage loan servicing, to begin with. From a lending standpoint, it depends on who we can package your loan with and who we can make the most money with.We understand that the post-closing process can sometimes be a little confusing, so if you ever have any questions about it, don’t hesitate to reach out. It is our goal to be your mortgage lender for life, whether it be for your next home purchase or a refinancing of the home you own now. Just call or send us an email and we can talk about it.

What Happens to Your Loan After You Close?

By the time you’ve made it to the closing table in your transaction, the hard part is over.Check out the next Agent MastermindApply OnlineOur walkthrough of the mortgage process continues with the closing day. First off, congratulations. You made it. This is what you’ve been working toward for weeks, maybe months. Let’s walk through what’s going to happen on closing day step-by-step.On your way to the closing table, you will wire your funds to the title company. Once you get to the title company, that’s where you will re-sign everything that you have previously signed. You may have done e-signatures all the way through, but we need your physical signature on every single document. Bring an ice pack for your hand if need be. You should also bring two forms of identification with you. One should be your driver’s license, and the other can be something that verifies your name or identity, like a social security card. The closing agent is going to review all the paperwork with you as you sign it. Once you are done signing the documents, they are going to take a few select documents and send them back to our closing department to get funding authorization. We as the lender will then have to review those documents before we release the money to the seller.You have achieved the dream of homeownership. If you’ve been issued funding authorization and the buyer and seller documents are all signed, you can leave the closing table and go directly to your new house to celebrate. There’s no delay with you getting in, although it is a good idea to have your utilities switched over for when you take possession of the home.Congratulations, this is a huge accomplishment. You have achieved the dream of homeownership. If you have any questions for us or know anyone looking to buy a home, give us a call or send us an email. We look forward to hearing from you.

How Exactly Does Closing Day Work?

 We'd like you to meet Jamie Lowe, the newest addition to the team. Jamie will be our business development representative.Check out the next Agent MastermindApply OnlineToday I wanted to introduce Jamie Lowe, our newest team member. As the business development representative for our team, Jamie will work with Realtors, builders, and others in the community to give support and build awareness for everything our team offers.Jamie will be in charge of marketing efforts both online and face to face. She will make sure your incoming referrals are followed up on in a timely and professional manner, and we’re really excited to have her on our team in this capacity.Jamie will be coming by your office in the near future to introduce herself and tell you more about what she can do for you. We are looking forward to having Jamie on our team to help us provide you with better service.In the meantime, if you have any questions about mortgages or the loan process, you can always call me at 352.242.1535 or you can email me at Kristin@KristinJamiesonFL.com.

Meet Jamie Lowe Our Business Development Representative

Previously, we discussed mortgage loan disclosures. Once disclosures are issued and everything has been signed off on, we can move forward by placing the new orders. In other words, until certain information has been verified, we don’t want to order anything that will add additional costs to the transaction, such as appraisals and surveys.  This is an extremely important process. We are unable to proceed with new orders until we verify all pertinent information, such as employment, the applicant’s social security number, tax verification, and rental verification. At that point, we can move forward and order the title, appraisal, and all of the remaining verification. Then we can go to underwriting. We cannot place any orders for that mortgage until the disclosures have been sent back & your buyer has given their intent to proceed with financing. We cannot place any orders for that mortgage loan process until the disclosures have been sent back to us and your buyer has given us their intent to proceed with financing. Once we have that, our loan partners will package the file and submit for new orders. At that point, the new orders person will order the appraisal, the survey, title, tax transcripts, and verify your client’s tax returns. We will also verify your client’s social security number. We want to make sure that they are who they say they are, and we want to make sure that they are not on the national terrorist watch list. If you have any questions for me, please don’t hesitate to give me a call or send me an email. I would be happy to help you. 

What Are New Orders in the Mortgage Process?

 Check out the next Agent MastermindApply OnlineOne vital part of the mortgage loan process is the appraisal. An appraisal is something the bank orders on your behalf to verify the information about the property. It’s like a 17- to 24-page storybook about the home you are buying. It will give all the characteristics and compare it to recently sold homes in your area. This will do a few things for you:1. Protect you from a bad investment.2. Keep the lender from lending more than the home is worth.Lenders rely heavily on appraisals. They take up about ⅓ of the mortgage process. Homes can come in lower than the asking price, and it’s becoming more common as property values increase and inventory declines."Lenders rely heavily on appraisals." People are offering sometimes more than what the home has been listed for, but for lenders, they are still only going to lend on the lower of the sales price or the apprasied value of the home. If the appraisal came in a little below the contracted sales price, you as the buyer would have to pay the difference from the appraised valueand the purchase price if the seller was not willing to accept the current appraised value.One of the biggest things we see when it comes to appraisals is repairs needed on the home. Government loans are very strict with any health and safety issues, and appraisers are trained to find them. Keep in mind these are strictly health and safety concerns, not cosmetic issues. It’s not something you should feel bad about asking a seller to fix. You don’t want to buy a house where your health or your family's safety will be in danger.If the seller isn’t willing to make repairs, we have a few options. There are some programs we can add into the loan for the cost of rehab. You could also ask for repairs at closing or cancel the contract. You would still be able to get your earnest money deposit back due to the appraisal contingency in your contract.If you have any questions for me, don’t hesitate to reach out. I would love to hear from you via phone or email. Talk to you soon!

What Are the Ups and Downs of Appraisals in the Mortgage Process?

Check out the next Agent MastermindApply OnlineUSDA mortgages offer 100% financing for low-to-moderate income families so they can get into a home they can afford with little to no money out of pocket. Here are a few things you should know about the USDA loan program:1. Who qualifies and why?USDA loans have geographical restrictions, as well as income limitations that vary county by county. For example, in Lake County, a family of one to four people cannot make more than $75,850. That number goes up as the number of people in the family increases, and it’s going to be a different requirement in each county.There are some exceptions to the income limit. If your client makes more money than the income limit suggests, please reach out to us. As many of the baby boomers are getting older, we may be taking our parents into our homes. If you’re applying for a USDA loan, any expenses that go into the care of the aging parents can be a deduction for the income.Another expense to take into consideration is childcare. As the mother of a two-year-old and a six-year-old, I pay astronomical amounts in childcare every month. Child care expenses can be deducted from the USDA income limit.As for geographical restrictions, those can be found on the USDA’s website. Simply enter the property address and the site will determine if it is in an eligible area. Traditionally, eligible areas are rural. However, in Claremont, we have a population of more than 20,000, which usually doesn’t work with the USDA’s guidelines but the area is still considered rural in character. All of Lake County Florida is still USDA eligible.2. What are the minimum program requirements?There are no down payment requirements. However, the USDA does have the most strict debt-to-income ratio requirements of any loan program. After all, the whole purpose of this program is to get low-to-moderate income families into homes they can afford. They don’t want people to be house rich and dirt poor. "The USDA mortgage helps low income families get into homes they can afford." That said, they are the least strict with credit score requirements. Ideally, you should have a score of at least 620, but credit scores are not actually required. If you have nontraditional credit, such as documentation that you have paid rent, that’s all you need. They are very open-minded when it comes to credit.3. What are the coming changes to this program and when will they take affect?Right now, the USDA charges a 2.75% mortgage insurance fee. Anyone using the program pays that fee. Since the USDA offers a down payment below 20%, you also have to make a monthly PMI, or private mortgage insurance, payment. PMI protects the lender should the borrower default, and that payment is usually 0.5%.However, one of the best changes in our industry is coming soon. In October of 2016, they are lowering the upfront mortgage insurance fee to 1% and the monthly PMI fee to 0.35%. This huge change allows more people to get into the program at a lower cost!If you have any questions, please don’t hesitate to reach out to me. I would be happy to help you!

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Success Mortgage Partners - With Kristin Jamieson

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