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When getting a mortgage you want to make sure your Loan Officer(Mortgage Banker or Broker) knows as much information as possible.  The more information, the better.  And unfortunately, if you do not tell them they won’t know.  And not knowing can cause your loan to be denied.  Here are 7 major things you MUST tell your loan officer when applying for your Mortgage:

1.     I am Paid Commission-   If you are paid commission you have to tell your loan officer.  This is, because commission income is treated differently than someone who is paid a salary.  If you are paid commission you need a track record of getting paid commission for usually 24 months.  And your commission income is divided over your time working.  So needless today, you will want your Mortgage Professional to calculate your income vs telling them the wrong income amount.  You will also want to tell them about overtime, bonus and any other type of income. 

2.     I am Married- Trust me, I know this seems obvious but I have had clients tell me they are not married.  Sometimes it is because they are separated from their partner or were married in another country.  But, trust the truth will come up during the mortgage process.  So make sure to be up front with your mortgage person so they can come up with the best solution for you. 

3.     I am Self Employed- If you are self employed(or paid a 1099) your income will be calculated based on your income after your write offs on your tax returns.  And most situations will be calculated over a 2yr period.  So even thou  you deposit “ $20k” a month in your bank account does not mean that this is your income.    And in this situation make sure you fax your last 2 years tax returns to your Loan Officer.  And let them calculate your exact income.

4.     I deposit random amounts into my Bank Account- For every mortgage, you are required to submit the last 2 months bank statements.  So any large deposit in the last 60 days has to be verified.  So if you have sold a car, motorcycle, baseball cards, etc recently make sure you have proof. 

5.     I am here on a Visa- If you are here in the United States on an Immigration Visa, make sure your Loan Officer knows.  And make sure you know which Immigration Visa’s you can have to get a mortgage. 

6.     I get/pay child support- If you get paid child support make sure you tell your Loan Officer.  And if you pay child support make sure they also know this.  As both examples can increase or decrease your income.

7.     I owe Back Taxes- If you are owe back income taxes, tell your Loan Officer.  If you owe back taxes and/or making payments on them, this could affect your loan approval.  And your Loan Officer will find out about the back taxes when they order your income records from the IRS.

Don’t leave it up to your Mortgage Professional to assume anything, tell them up front.  This will make your loan go smoother and cause you less stress.  This list makes up the Top 7 things you MUST tell your Loan Officer when applying for a Mortgage. 

Well, it is that time of year.  TAX TIME!!!  And we are all looking for the most write off’s we can.  And owning a home has many.  One special deduction for the year 2011 is that you can write off Mortgage Insurance.  This was not true in the past and at this point it does not look like you will be able to write it off in 2012.  But, who knows what will happen in the future.  Here are the exact rules for being able to write off your Mortgage Insurance on your 2011 Tax Returns:

1.     Your purchase or refinance loan must close before Dec 31^st, 2011

2.     Household income must be $100,000 or less to get the full write off of the insurance premium. 

3.     The amount of the write off is reduced by 10% for every $1000 over $100k.  With it phasing out at $109,000.  meaning if you make over $109k as a household you can not write off mortgage insurance

4.     It applies to your primary home and one other residence that the tax payer uses. 

5.     All forms of mortgage insurance qualify for this.  So if you have a FHA or conventional loan, they qualify.  If you have paid upfront mortgage insurance with a VA,FHA or USDA loan you can also use this as a tax deduction.  The amount is just divided over a 7year period. 

This is great news!!  I am not a CPA, so please contact your tax preparer with any specific questions.  Mortgage Insurance is just one thing to take into account when choosing a loan.   Call me today to make sure you are getting the best mortgage possible.

Whether you are buying or refinancing  your home, the FHA mortgage maybe the best option for you.  Here are the top 12 Benefits of the FHA Loan:

1.      Low Interest Rates- FHA Mortgages tend to have lower rates than Conventional loans.  As an example if the FHA interest rate today is 3.75% than most likely the conventional loan rate is 4% or higher

2.      Lower Credit Scores- FHA Loans will allow lower credit scores than a Conventional Loan.  On a FHA Loan it is possible to get approved with a fico score as low as 580

3.      FHA Loans are assumable-   This means that sometime in the future you could sell your home and that buyer could take over your FHA mortgage.  I believe that in the future there will be a benefit to this based on rates never being this low again.  So if you are selling your home and they can assume a rate of 3.75%, that would be much better than your neighbor selling their home and the buyer having to get a new mortgage with a much higher rate.  And that buyer assuming your mortgage could be an advantage when selling your home.

4.      Deferred Student Loans- FHA Mortgages will not count your future student loan payments in your debt to income ratio, as long as they are deferred for 12mths or longer.  Unlike Conventional loans which require to count these future payments in your debts.  Someone who  has deferred student loans could get approved for a FHA loan, who otherwise could be denied for a conventional loan

5.      Parents Can Co-Sign- Someone who is getting a FHA mortgage could have their parents co sign on their mortgage.  By having their parents cosign, it could possibly help them afford to buy more home.

6.      Higher Debt to Income Ratio- When getting approved for a mortgage, the lender will take into account the amount of your debts compared to your income.  This is called a debt to income ratio.  FHA loans allow higher debt to income ratios than conventional loans.  Allowing someone to buy more home with a FHA loan then with a Conventional loan.

7.      Past Foreclosure- FHA only requires that you are 3yrs removed from a finalized foreclosure.  Unlike Conventional Loans that now require 7yrs. 

8.      Down Payment- FHA loans only require a down payment of 3.5%, even with lower credit scores

9.      $100 Down Payment- If you buy a HUD foreclosed home, you can qualify for a down payment of $100.  This program is in connection when doing a FHA loan. 

10.  Past Bankruptcy- FHA loans only require that you are 2yrs removed from a past bankruptcy.  Unlike a conventional that requires 4yrs. 

11.  FHA 203k Loan- You can actually get a FHA loan that allows you finance in repairs/up grades for the home, at the same time you buy the home.  This loan is called a FHA 203k loan.  Guidelines for a FHA 203k loan.   

12.  Seller Can Pay Your Closing Costs- On a FHA loan you can negotiate to have the seller pay up to 6%(of the home’s sales price) toward your closing costs.  This will greatly help reduce the money you will need for closing.  In many examples a conventional loan will only allow 3% paid toward your closing costs. 

When getting a mortgage it is important to know all your options and decide which one is best for you.  This is just 12 examples on why the FHA loan maybe best for you!

Recently, I got the awesome opportunity to experience the last day of taping for a recent episode of Restaurant Impossible.  They were in town to do a show on the Pelican Grill in Seabrook(a suburb of Houston).  If you are a fan of the show, you know the premise.  Robert Irvine the well known Chef goes to a restaurant in need of help and works a miracle.  He makes over the Menu and gives the restaurant a make over.  But believe me there is a lot that goes into the making of a 1hr tv show.

Normally the show is filmed over a 3 day period.  And per the production team, it is usually a long 12 to 15hr days.  The production team was at least made up of 20+ people, between the director, camera man, contractors, etc.   And for every episode Robert makes up a new menu and gets to work with his team of a designer and contractor to make over the restaurant.  I was there only  for the final day, but I promise there is very little down time for the production team.  Since it is reality TV, you only have one chance to really get the moment.   

Robert Irvine and his team were really great to my  family and I.  It was an awesome experience.  It was also very cool to listen to Robert talk about the restaurants he had helped and how they were doing now.  Many are succeeding.  To him it is not just a show, it is his passion.   And if you watch the show you can tell.  Stay tune for clips of the show that was filmed here in Houston.  I am guessing you will see my cute 4yr old daughter in a scene or two. 

One of the greatest benefits to being a Veteran is the VA Mortgage.  Whether you are buying a home or refinancing that home, you can not beat a VA Loan.  Here are 9 benefits to them:

1.      0% Down Payment- When you purchase a home with your VA loan benefits you can purchase it with No Down Payment.  Unlike a FHA loan or Conventional, that do require a down payment of at least 3.5% or more

2.      No Monthly Mortgage Insurance- VA Loans do not require monthly mortgage insurance.  Giving you a great low payment.

3.      Fess the Seller Must Pay- When a Veteran buys a home, there are fees that the Seller must pay.  This helps reduce the money you will need for closing.

4.      Your Loan is Assumable-  A Major benefit that you do not hear much about now a days is that  VA Loans are assumable.   This means you could eventually sell your home to another Veteran and he could take over your mortgage.   Mortgage Rates will never be this low again, so I believe there will be some value when you go to sell your home.  As an Example, your home  has a mortgage assumable at an interest rate of 4% vs your neighbor’s home is being sold and their buyers would need to get a new mortgage at the market rate of 5.5%.  I believe this will help you in getting the best price possible for your home in the future. 

5.      620 Credit Score- You can get approved for a VA loan with a credit score as low as 620.  Most Lenders require a credit score of 640 for a FHA, so a VA loan is an easier loan to get approved for.

6.      Mortgage Rate- VA Loans have a great low rate

7.      VA Jumbo Loans- Unlike conventional loans, you can get a VA loan over $417k.  And unlike normal Jumbo loans, your rate will not be up to 1% higher than the market rate.  Over $417k the Veteran will have to out a down payment down.  And VA Jumbo loans are up to $1 million(depending on Lender guidelines).  Her are: VA Jumbo Guidelines

8.      You can have 2 VA Loans- Most Veterans and even some Mortgage Lenders do not know that you can actually have two VA Loans at the same time.  Here are the Guidelines for having 2 VA Loans at the same time.

9.      Easier Debt to Income Ratio- VA Mortgages have looser debt to income ratio guidelines than a conventional loan.  Allowing you buy more home. 

If you are a Veteran you can’t beat the VA Mortgage!  Make sure you know all your options when getting a mortgage. 

In a recent move, Fannie mae and Freddie Mac changed their guidelines in regards to foreclosure history.  Now on all conventional loans no matter the loan to value or down payment amount, the borrower must be 7 years removed from a foreclosure.  This changed from the 4yrs that were needed based on a 20% down payment and longer time periods needed for lower down payments.  This does not affect FHA loans, luckily.  As they only require 3yrs removed from a foreclosure. 

Keep in mind this can affect clients who had a short sale transaction in their past.  As many short sales are approved based on the client being behind on the mortgage.  And that the foreclosure process could have started.   Please understand that  a “foreclosure” is considered as soon as the foreclosure process is started.  Not just that the home was foreclosed on.  Someone could have the foreclosure process started and then short sale the home, they would fall under the foreclosure guidelines since the process started.  And also many lenders consider a short sale the same as a foreclosure. 

And finally, the date of when the home was foreclosed on or sold, is the date that starts the 7 year time period. 

Google has once again made our lives easier.  They offer a program called Google Alerts.  This is Google’s Definition of their Alerts: Google Alerts are emails sent to you when Google finds new results -- such as web pages, newspaper articles, or blogs -- that match your search term. You can use Google Alerts to monitor anything on the Web.

Here are the instructions to setting up your Google Alerts:

1.   Go to www.google.com/alerts.  You must have a Google email account or make one

2.   Put in the Term you want Google to search for.  Such as your name, company name, website, area of expertise, etc

3.   Choose a Result Type: Everything, books, blogs, videos, etc.  I suggest everything, since who knows what will come up so do not limit it.

4.   How often: As it happens, once a day, once a week.  I suggest once a day, so you do not get too many Alert emails

5.   How many- All results or only the best.  I choose all results

6.   Email address- The alerts will be emailed to your Gmail email address.   If this is not your primary email address forward it to your primary email address. 

You can have as many alerts set up as you would like.  Like I mentioned before I would set up alerts based on at least your Full Name, Nickname’s, company name, website address, etc.  Google Alerts is super helpful for keeping up on your internet presence.  It is super easy to setup, so go and do it today!!

The VA has recently made two major announcements in regards to Appraisals.  Here are the two changes:

1.     Interior Photos are now needed- This is not a major change since interior photos are needed on appraisals for FHA and Conventional.  The appraiser know must include photos of at least the: Kitchen, all bedrooms, main living area, examples of physical deterioration, examples of upgrades, restoration  and improvements. 

2.     Value Assessment- This one is a little bit more tricky.  In the past, the Lender’s Staff Appraisal Review(SAR) could give a value of 5% more or less than the VA appraisal value.  So if the lender disagree with a value they could give up to 5% more or less of what the VA appraiser assessed the value at.  This was a nice benefit in regards to appraisal values that just came in under the sales price.  This benefit has gone away, they can no longer alter the NOV(notice of value).   So what the VA appraiser appraises the home for, is what the final value must be. 

In our business, there are always changes happening.  These are two that can affect VA appraisals.  Please call or email me with any questions. 

What is an Empanada?  As my dad likes to say “its like an apple pie from McDonald’s, but with stuff in it”. Yep, that sums it up.  But let’s get a better definition from Wikipedia:

“An empanada is a stuffed bread or pastry baked or fried in many countries in Latin America, Southern Europe and parts of Southeast Asia. The name comes from the verb empanar, meaning to wrap or coat in bread. Empanada is made by folding a dough or bread patty around the stuffing. The stuffing can consist of a variety of meats, cheese, huitlacoche, vegetables or fruits among others.”

And let me tell you, they are awesome.  I recently ate at the, The Original Marini’s Empanada House in Katy.  And I can’t wait to go back.  Their specialty is Empanadas like the name says.  They have Empanadas(Menu) with meat, vegetables, cheese and dessert ones.  And each Empanada is between $1.85 to $3.25, which means they are a great meal and at a great price.  I was very impressed by the friendly service and quality ingredients.  As an example in their Peanut Butter Cup Desert Empanada they stuff it with Ghirardelli chocolate.  My personal favorite Empanada’s are the Italian, Texas barbecue and for dessert the Peanut Butter Cup. 

If you love great food and want something different, you need to run to The Original Marini’s Empanada House.  You won’t regret it! 

They have two locations:

3522 Mason Rd, #100, Katy 77450.  281-392-8153.  Closed Mondays

10001Westheimer Rd #2570, Houston 77042 713-266-2729. Closed Sundays

4th Annual Father Daughter Dance!!!

This year's theme is "A Night in the Secret Garden" so Gentleman bring your

best girl to this fun filled enchanted evening

Friday, February 3rd 7:00pm-9:00pm

Parkway United Methodist Church in New Territory

Cost-$20 per couple; $5 for Dad and $15 for daughter(s)

Contact Parkway United Methodist Church for more Information at (281) 494-5050