What Does Ability To Repay Mean?

http://bucket.wistia.com/medias/wmc87delfy?embedType=async&videoFoam=true&videoWidth=640 What are the “Ability to repay” rules about? In a nutshell, as this video shows, new laws require lenders to make a good-faith assessment of a borrower’s capacity to pay back their loan over time. It’s a longer-term view that goes beyond immediate income, debt and credit rating. These new Federal laws- supervised by the CFPB - require lenders to ask more questions - about income, assets, employment, credit history, and monthly expenses - as they relate to the proposed loan. For exa...
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What Is A Qualified Mortgage?

http://bucket.wistia.com/medias/egxxmwjb58?embedType=async&videoFoam=true&videoWidth=640 As this video explains,  Federal laws put into effect in 2014 and  supervised by the Consumer Financial Protection Bureau define lending practices and loan terms for a new category called “Qualified Mortgages.” They provide stable loan features for consumers and improve legal protection for lenders who follow the guidelines. These guidelines require lenders to assess each borrower’s ability to repay their mortgage loan. As of 2014, guidelines require that a borrower’s monthly DEBT - i...
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What Is A Rate Lock?

http://bucket.wistia.com/medias/rggmu4371s?embedType=async&videoFoam=true&videoWidth=640 Mortgage rates change constantly through an unpredictable combination of government policies and economic conditions. This video explains the common term 'rate lock.' A “Rate Lock” is a guarantee that a lender will honor a specific combination of interest rates and points for a given period of time. A lock protects a buyer from rate increases but commits them to a higher rate if mortgage rates fall below the locked rate. As of 2014, rate locks aren’t usually an option until a purchas...
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What Is A Certificate of Eligibility, or COE?

http://bucket.wistia.com/medias/9a707ti530?embedType=async&videoFoam=true&videoWidth=640 What Is A Certificate of Eligibility, or COE? The COE is the key document that verifies to lenders that someone is eligible for a VA-backed loan. Servicemembers, Veterans and National Guard and Reserve members may apply online or through their lender; most lenders have access to the system and can verify eligibility IF the VA has records on file. The VA also maintains a hotline for assistance. Surviving Spouses can use VA Form 26-1817 to request determination of their eligibility for...
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What Are The Major Types Of VA Loans?

http://bucket.wistia.com/medias/ftyg9tfdng?embedType=async&videoFoam=true&videoWidth=640 What Are The Major Types Of VA Loans? Major Veterans Affairs loan programs described in this video include: 1) Purchase Loans. These help eligible parties buy a home at competitive interest rates with little to no down payment and little or no private mortgage insurance. 2) Cash Out Refinance Loans which enable taking cash out of home equity to pay off debt, fund school or make home improvements. 3) Interest Rate Reduction Refinance Loans also called Streamline Refinance Loans can h...
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Understanding Your Loan: Additional Information Can Be Important

http://bucket.wistia.com/medias/zogoegpv3h?embedType=async&videoFoam=true&videoWidth=640 Page 4 of your Closing Disclosure is important. It is NOT just standardized form information that is identical for every loan. Review these terms: Assumption: can this loan be transferred to another person if you sell or transfer the property? Demand: can the lender require early repayment of the loan? Late Payments: what penalty, after what period, applies? Negative Amortization: does this loan schedule or allow payments that do NOT fully cover the interest due, resulting in increa...
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Understanding Your Loan: Closing Disclosure Page 1

http://bucket.wistia.com/medias/zsfyb0hfxy?embedType=async&videoFoam=true&videoWidth=640 The first page of your Closing Disclosure documents: The Loan Amount - the total you will actually borrow The Interest Rate - which does NOT include the fees factored into the APR on Page 5 If this loan has a penalty for pre-payment or includes a balloon payment Page 1 will summarize the terms. Projected Payments will show the chief cost components - Principal & Interest, Mortgage Insurance and estimates of your Escrow Payments over the life of the loan. You may see different col...
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Understanding Your Loan: Cash And Transaction Summaries

http://bucket.wistia.com/medias/48xh6i7jyi?embedType=async&videoFoam=true&videoWidth=640 Page 3 of your Closing Disclosure will compare cash requirements from your Loan Estimate to your actual final charges. If “Did this change?” is “YES” notes for changed sections should be provided. The bottom line final “Cash to Close” is the money you will need in-hand in three business days. If your transaction has a Seller the summary table will show a line by line comparison of Borrower to Seller transaction details. If there is no Seller you may see a Payoffs and Payments table i...
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Understanding Your Loan: Closing Cost Details

http://bucket.wistia.com/medias/xemdkgqmmh?embedType=async&videoFoam=true&videoWidth=640 Page 2 of your Closing Disclosure details specific closing costs. Section A includes: Origination charges collected by the lender Origination fees paid to brokers, loan officers or other parties and Discount Points - prepaid interest. These figures should match your original Loan Estimate. Section B covers services for which you could NOT shop. The total of these should be within 10% of the total from your Loan Estimate. Section C covers services you could shop. If you chose providers f...
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Your Rights And Rules For Closing Disclosures

http://bucket.wistia.com/medias/z3uut7vf24?embedType=async&videoFoam=true&videoWidth=640 The Closing Disclosure documents the actual terms of your loan transaction. You should receive it no later than 3 business days before consummation. It must be in writing - paper or digital. If the loan terms or costs change prior to consummation, your lender must provide a corrected disclosure AND an additional 3-business-day waiting period until loan consummation. Waiving the 3-day waiting period is only permitted in certain circumstances, and only when the waiting period would cause a b...
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