My New Blog

Mortgage lending today has received a great deal of press over the last few years. During this time, Mortgage Borrowers have found their own opinions changing from the blitz of information on television, newspapers, and on the internet. It has been quite an education on a topic that was seldom discussed prior to the housing downturn. As a result, Mortgage Borrowers have now become acclimated to this new reality of mortgage financing and have come to accept these five things in the mortgage process:

It’s Invasive

Lender requirements for information and documentation on income and assets have increased to unprecedented levels. Documents provided to a lender can trigger additional requests for information depending on what information is found within those documents. For example, credit explanations, large deposits on bank statements, even tax transcripts from the IRS to validate reported earnings; all may require additional information to be validated. Mortgage Borrowers don’t like it; however they have accepted this new level of scrutiny.

It’s Not Just Me

The last time the Mortgage Borrowers applied for a mortgage it probably took 10 minutes and required little to no documentation to be approved. The process now is lengthier and much more detailed. No one is exempt or treated as special. Everyone is put through the same scrutiny and requests for information. Mortgage Borrowers have come to realize that they are not being singled out, but rather, this is how the approval process it is going to be.

It’s Repetitive

As recommended, most Mortgage Borrowers obtain a preapproval early on in the relocation process. This provides time to gather documents, clean up credit issues and put the Mortgage Borrowers in a strong negotiating position when buying a house. Depending on the timing from preapproval to house hunting and then closing on a home, some documents, if they are over 90 days old, will be required to be refreshed to revalidate the information. Mortgage Borrowers have come to understand that situations can change and aged documents must be updated.

Don’t Take Property Issues Personally

In this real estate market lots of things can go wrong with the approval of the property, which is the collateral of the loan. Appraisals may not come in at the purchase price, the house may be in a declining market, the comparable sales on the appraisal don’t justify the value, or maybe the condominium is not a lender approved condo complex. Regardless of the issue, Mortgage Borrowers have found that property approval is not a reflection of their ability to pay, their ability to buy smart or them personally. Property issues happen and Mortgage Borrowers are not taking it personally.

It’s Easier to Cooperate than Fight

Mortgage Borrowers have found the mortgage process so different than it was a few years back. It would be easy to complain and demand not to be subjected to this level of detail that today’s process brings. Mortgage Borrowers have found arguing and fighting the request for information won’t change the new rules. Many have found the best way to quickly be approved and keep the process moving forward is to comply with the loan approval requirements and move ahead.

Today’s mortgage experience can be confusing, frustrating and full of surprises. A Relocation Mortgage Banker like Jerry Lampert WA ML0-55438 of Republic Mortgage will help ease these challenges, discuss and set proper expectations, and assist the Mortgage Borrowers in a smooth and timely approval. To learn more, Jerry can be reached at 360-698-6707, jlampert@repmtg.com or at www.JerryLampert.com.

Cost of Waiting to Buy

Divorce and your HOME

Divorce Options for Dividing the Home

During this difficult time, there are many questions you might be asking, including "Can I keep my house?" and "What are my options?" Speaking with someone who has been down this road, like me who understands from first hand experience and developed an deeper understanding of how divorce affects your situation is the first step.

Below are answers to some of the most commonly asked questions about divorce and your home.

Should I keep the house?

If I am the one to receive the home in the settlement, does it make sense? To answer this, take into consideration home size, utilities, payments, family needs, etc. You also need to realize that you will now be entirely responsible for the house payment, upkeep and other related bills. Your income will most likely be decreasing, so it is imperative that you be aware of what your expenses will be.

Will I owe my spouse anything if I keep the house?

Does your spouse have marital interest in the home? If so, the equity in the home needs to be determined by an appraiser and or your agent (Joana Hoover-Lampert, RE/MAX Town and Country 360-362-2700). The appraised value - less the costs of selling (commissions and seller closing costs) equals equity to be split between the parties. This is the amount you will be obligated to give to your ex-spouse.

With the divorce, your spouse may put a marital lien on the property, or there may be a court ordered mandate for distribution of the equity. This means that you have a specified amount of time to obtain the funds needed to give your ex-spouse their portion of the equity. This can be done by cashing out the equity in the home with a new mortgage or selling the home.

If you choose to stay in the home, you have two financing options to pay your ex-spouse. You can refinance your home to get cash out, or you can obtain a new home equity loan. This is where you will want the advice of a trusted mortgage professional(Jerry Lampert-Republic Mortgage Home Loans 360-620-5647).

What if I am the one leaving the home?

It is important to know that even though the divorce decree awarded the home to your spouse, you are still obligated for this debt in the eyes of the mortgage company if your name is one the mortgage!

Many people assume that by filing a quit claim deed removing themselves, they are no longer responsible for the mortgage. A quit claim eliminates your name from the title of the property, not the mortgage. The benefit of a quit claim deed is that if the one on title passes away, the property will go to their heirs rather than the ex-spouse.

What can I do if my name is on the mortgage?

Unfortunately, because you are obligated for the mortgage until it is paid in full, it is imperative that the person responsible for the payment remains current. One possibility you have is to do a name delete assumption. If this is done as a non-qualifying assumption, the spouse not receiving the property can have their name removed from statements, but the financial obligation remains the same.

Will a divorce affect my ability to qualify for a home loan in the future?

Am I still obligated because I am on the other loan? Once you have your final divorce decree, we will look at your income and credit to qualify you on your own. Again, in most situations, child support and alimony must have been received for three months and have at least a three year likelihood of continuance for this income to be used for qualifying. If the divorce decree states that you are not obligated for the mortgage, and the mortgage on the home awarded to your ex-spouse has not been delinquent during the last 12 months, you may be able to qualify without this obligation.

If you want to purchase a home prior to the divorce becoming final, you may be allowed to do this, but be aware that if you are in a community property state your spouse will have a marital interest. Be very careful with this situation! You will also have to qualify with the full debt from the current home because there is not a final divorce decree.

How do I find a reputable mortgage lender?

Taking the time to talk with a mortgage lender before your divorce or before you decide to start looking at a new home can help eliminate many of the concerns and problems that surface in these situations. Choosing to work with a Trusted Advisor as a mortgage lender is crucial to your financial well-being, especially during this difficult time. There are a variety of mortgage lenders available that you can search for in the phone book or online. Ideally you want a lender that is experienced in dealing with homeowners who are going through a divorce.

It is very important to understand the process and work with a professional who has experience in this field.  Joana Hoover-Lampert has the experience you are looking for to help you make good sensible non- judgmental decisions in this time of needed.  She also has been down the Divorce road herself while raising 3 little kids on her own. Joana, works with one of the top lenders in the county.