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Showing posts from March, 2019

Little Known Difference between Interest Rate and APR

        Little Known Difference between Interest Rate and APR       Annette Bui| Updated March 21, 2019 |  Mortgage Programs 101        On e of the first things consumers want to know is what is the interest rate? When comparing lenders and finding out which loan product works best for you. One of the most important factors is to look at what the Interest rate as well as the APR or annual percentage rate.  While both figures will express how much you are paying on the loan, they do not mean the same thing.  The interest rate is the cost for the principal amount borrowed on your mortgage loan. This can be either fixed for 15, 20 or 30 year term.                   The APR, short for annual percentage rate tells you the total cost of financing your loan including any fees, discount costs that are financed into the loan. This means, when you see an advertised rate and the APR is higher than the interest rate that you are paying costs that are added to your loan. Thus it is

Cringe-worthy Mistakes to Avoid during your Loan Process

Cringe-worthy Mistakes to Avoid during your Loan Process  Annette Bui| Updated May 26, 2020 |  Mortgage Programs 101   Some critical things to remember when you are in the middle of getting a mortgage loan.   Many consumers do not realize the significant impact this may have on the ability to qualify and get their loan funded. Below are some important things to NOT do:   Employment Acquiring a new mortgage loan means the primary goal is to show a lender you have consistent cash flow such as your job to repay the debt. Changes in jobs during the loan process or transferring departments can impact your qualifications. I have seen clients switch from getting paid as a W2s employee to being “promoted” to a 1099 position with a higher commission payout. This would be an example of how job change will adversely affect you because lenders would then need to see a 2-year average history of your new income as a 1099 independent contractor. Large purchases   Acquiring a new purchase

Things to know about a Title Report

Things to know about a Title Report Annette Bui| Updated March 7, 2019 |  Mortgage Programs 101 Most homeowners are focused on securing the best rate or getting a good appraised value when buying a home. A very important aspect of the home buying process that may impact the closing time frame is what is shown on a title report. Oftentimes when buying a condominium, the lender will need to get the homeowner’s insurance binder. Depending on the community, this duration may take as long as 5-7 business days. Things to keep in mind to understand how a title report may affect you. Legal description-the legal description gives you more detailed information on the property that is not shown in the original listing advertisement. It is a written detail of property boundaries, any inclusion of property’s interest in common areas, easements and or any parking that is included. If it is a condominium, you will get information on any non-exclusive or exclusive easements. Taxes-Real