Co-Signer for your Mortgage

The only way you can utilize a co-signer on a mortgage is for income purposes only.

On a mortgage the lender can use the co-borrowers income to qualify the occupant borrower. This is called a non occupant co-signer. It is NOT possible to get a co-signer because of bad credit. The only way a co-signer works is if a person needs more income to qualify for the home they want.

If you have more questions please message me below. I am happy to answer them ASAP.

Equity Line of Credit

An Equity Line of Credit (ELC) is a great tool to access your homes equity in your home. You can use the ELC for home upgrades, debt consolidation, cash reserves, and you can even use the ELC to purchase more real estate.

If you are thinking about getting an equity line of credit reach out to me below. I am happy to answer all your questions asap.

How to Avoid Paying Taxes when you sell your home

We're talking about capital gains when you sell your primary residence.

If you purchase your primary residence and you live in your primary residence for at least two out of the last five years before you sell it, the government allows you to not pay taxes on the gain that you had of that home when you sell.

So that allows you to take that equity, and you could keep it without having to pay taxes on it. So it's per spouse, so the government allows up to 250,000 per spouse or 500,000 for a couple that you can take out of the home and not have to pay taxes as long as you've lived in the home at least two out of the last five years.

I hope this mortgage safety tip is helpful for you guys. If you guys have any questions, feel free to reach out to me any time. Thank you so much.

How to Pay off Your Home in 7 Years or less Using an Equity Line

This is an amazing strategy that I am currently utilizing myself with my currennt mortgage. How it works, is very simple.

Most of us will have some savings in our bank account that is not earning us any interest at all. This money could be used to pay down our mortgage but only if we could access it if we needed to. That is where an equity line of credit comes in. The equity line of credit is used to pay off or pay down your first mortgage. Then the money in your bank account is deposited to the equity line of credit. As long as you can continue to save at least 10% of your money this strategy will work to pay off the mortgage in 7 - 10 years with out changing your monthly expences.

Here is a full tutorial on this strategy that I found was very helpful.

Increase Your Credit to qualify for a Mortgage

Did you know that you can increase your credit score within two to three days instead of waiting for the full 30 to 60 days that normally happens when you pay down a credit card?

What a rapid rescore is, is that when you pay off your balance, or maybe you pay down your balance, you can give that new statement to us or new balance, we take that balance, and we send it to all three bureaus for you and we instantly within two to three days update your credit score. This allows you to qualify for more, allows you to qualify for a better interest rate, and allows you to qualify for programs. You would have to wait otherwise, 30 to 60 days.

I hope this tip is helpful, and we'll talk to you guys very soon. See you.

LS 3 Ways to Pay Closing Costs

There are 3 ways to pay your closing costs when you purchase a home.

Remember. You are borrowing a lot of money, so you want to make sure you know your options.

The first way to pay your closing costs is obviously to pay cash for them. Most will not have the ability to pay cash for their closing costs so you have 2 options.

The first option is to ask the seller to pay your closing costs. This may sound like a brilliant idea right. Yes. The seller can pay them. Well not so much. The seller might be willing to pay your closing costs however this means they are willing to take less than what you are offering.

Monthly Mortgage Insurance

On a conventional loan, you have to pay mortgage insurance if you don't put at least 20% down on the home.

If you choose to pay monthly mortgage insurance, you have to pay this monthly mortgage insurance for a long period of time, and there are a few different ways to get rid of it.

I've done another video for you that explains the two or three different ways you can get rid of mortgage insurance if you pick the monthly mortgage insurance.

Now, if you pick this monthly mortgage insurance, you want to make sure that you pick this strategically because there's a calculation where you could pay a one-time fee and not have to pay monthly.

Platinum Grant Program

The Platinum Grant Program is good but NOT that good. There is no such thing as a FREE LUNCH. Did you ever learn this from your economics teacher?

This program does help 1st time buyers get into a home however its VERY expensive. The loan gives you a 3-4% grant that will cover your down payment on an FHA loan. The banks are NOT dumb. They will give you this grant but the interest rate they will charge is 1-1.5% higher than what you could get if you came up with the 3% down on your ownn. This extra interest will be payed back to the bank. The higher interest is for the life of the loann. The bank will make way more money then they give you in the long run. They do require you to wait at least 3 years before the grant is forgivable.

If you have more questions here is a link to the grant program. Write your questions below.

Rehab Mortgage Loans

These loans are NOT done too often.

If you find a home that needs lots of repairs or maybe you want to finance repairs into the mortgage this is possible through a rehab loan. Both conventional and FHA has a rehab loan program. How the program works is you offer what you want to pay for the home. If they accept, then during the escrow period before we close the loan you will need to get a contractor to give you bids on the exact amount or cost of the rehab. We then use these bids to get an accurate valuation of the home after repairs will be completed.

Its called a subject to appraisal. We then give you the loan to purchase the home and the money for the rehab. There are extra costs involved in these rehab loans and the interest rate is normally a little higher than normal as well.

Waiting Periods after BK

Each loan type requires a different waiting period depending on the type of bankruptcy that was filed.

Conventioanl loans require a 4 year waiting period after a chapter 13 or a chapter 7 bankruptcy.

FHA loans only require 2 years from discharge for a chapter 7 bk and require only 1 year from filing on a chapter 13 bk.

The USDA loan requires 3 years from either a chapter 7 or chapter 13 bankruptcy. The usda loan, however, does allow extenuating circumstances. They will let you purchase prior to the 3 years if you had a job loss or a major medical circumstance that required you to file for BK.

If you have more questions please message me below. I am happy to asnwer you questionsn ASAP.

When to Lock In Your Interest Rate

The best time to lock in your interest rate is when you go into contract with an accepted offer.

It is possible to lock your rate before getting an accepted offer, however we highly recommend you wait. This will save you money up front and also allow you to get a lower interest rate. The longer you lock your loan the more expensive and the higher the interest rate will cost you.

Why Interest Rates go Up or Down

Interest Rates will change multiple times per day and can be very volitale at times.

The 30 year fixed rate changes baised on how good or how bad our economy is doing. If you think about it this way. Lets say you loaned someone money for a 30 year period. The amount of income you received is the same every single month. You want to make sure this money goes as far as it can possibly go. When our economy is doing very well, this means that money is inflating. Milk, groceries, gas, etc are getting more expensive. Your $1,000 per month can NOT buy as much as it used to. So the 30 year rate will go up when we have high inflation. The 30 year rate will go down when we do not have inflation.

This is exactly why the 30 year loan rates were 10+% in the 70s and 80s.