The Advantages of Working with Absolute Mortgage

Purchasing a home is a major financial decision and choosing the right lender is pertinent to a smooth and hassle-free process. When evaluating the lenders out there, one should take into account each lender’s product offering, flexibility, dedication, and ability to close. Being a direct lender, especially a mortgage bank like Absolute Mortgage Banking (AMB), has some very distinct and necessary advantages to help home buyers get the ideal financing that they deserve in the most efficient manner.

Here are just a few advantages of choosing AMB as your partner in this critical and exciting move!

  • As a direct lender focused solely on mortgage, we execute fast while maintaining great flexibility with the many types of loan programs that we offer
  • We have comprehensive access to every major lender and many niche portfolio lenders
  • We sell directly to Fannie, Freddie and HUD
  • We take a financial-planning approach to lending, with proprietary tools that better qualifies buyers and gives them the confidence to act
  • With local control over the entire process, efficiency and communication are frictionless
  • With our added ability to broker transactions, we have the most complete product suite in the market
  • Committed deal team ensure better coverage, communication and execution
  • A Mortgage Advisor, a Transaction Manager and a Processing Specialist are assigned on every transaction
  • Dedicated individuals focused on key areas like programs, pricing, guidelines, marketing, customer service, customer retention, etc.
  • Weekend availability/coverage

We make sure that each and every client of ours not only gets the right financing for their situation, but that they also feel comfortable throughout the entire process and confident in their decision.

Let us help you find the financing solution that works best for you or your clients, please contact your favorite Absolute Mortgage Advisor or visit us at http://www.absolutemortgage.com for more information.

Equal Housing Lender Icon©2014 Opes Advisors, Inc., doing business as Absolute Mortgage Banking. Licensed by the CA Bureau of Real Estate, 01458652 and NMLS 235584. Equal Opportunity Lender. All rights reserved.

Buy Almost 30% More With AMB

Expand House

With all of the chatter around the mortgage regulators making it tougher for buyers to qualify for financing, it’s good to know that there are plenty of programs out there that empower home buyers to stretch their qualifications.  As you’ve read, Qualified Mortgages (QM) have restrictions like 30-year terms and lower debt-to-income ratio requirements.  However, there are programs out there that have 40-year terms, lower qualifying rates and higher debt-to-income allowances.  Those programs allow for almost 30% greater purchasing power than the QM mortgages. 

For example, let’s say you have a client who makes $200,000 per year.  With a QM mortgage and using a 5/1 ARM program, the client qualifies for a $1,200,000 purchase.  However, using the same 5/1 ARM program with a 40-year term, the client can move up to a $1,550,000 home!*  In this environment with a surplus of buyers and a shortage of sellers, these more aggressive mortgage financing solutions may make the difference between searching for homes and buying a home.

For a comprehensive review of what financing solution works best for you or your clients, please contact your favorite Absolute Mortgage Advisor or visit us at www.absolutemortgage.com for more information.

*This example presumes 20% down, great credit, using a 3% note rate.

Equal Housing Lender Icon©2014 Opes Advisors, Inc., doing business as Absolute Mortgage Banking.  Licensed by the CA Bureau of Real Estate, 01458652 and NMLS 235584.  Equal Opportunity Lender. All rights reserved.

A Daisy of a Down Payment Assistance Program

DaisyWith mortgage interest rates continuing to be attractive, home affordability is still high and there are some GREAT first time home buyer programs out there. One of our favorite programs is called the Daisy, which gives qualified buyers up to $15,000 in cash toward down payment and closing costs at NO cost to the borrower!* Some of the details around this program include:

  • Loan amount cannot exceed $400,000
  • Of the $15,000 allowance, $7,500 must be for down payment with the other $7,500 for closing costs
  • First mortgage must be approved through an approved lender (like AMB)
  • The borrower’s income cannot exceed $120% Area Median Income, adjusted for family size
  • Prior to closing, the borrower must attend homebuyer or landlord (for those buying multi-unit properties) education sessions conducted by a HUD approved counseling agency
  • Eligible properties include single family, condo’s, PUD’s and 2-4 unit properties

The Daisy program is available to properties located in the following counties: Alameda, Contra Costa, Los Angeles, Marin, Orange, Riverside, San Bernardino, San Diego, San Francisco, San Mateo, Santa Barbara, Santa Clara, Sonoma and Ventura counties.
For a comprehensive review of what financing solution works best for you or your clients, please contact your favorite Absolute Mortgage Advisor or visit us at http://absolutemortgage.com/ for more information.

*The prorated balance due is repayable if the property is sold, refinanced, not owner-occupied as the primary residence or transfers title within the first 36 months. A rate & term, no cash-out refinance on the first mortgage is expected from prorated balance repayment. Please contact your Absolute Mortgage Banking Mortgage Advisor for specific information. Program subject to modification or cancellation at any time.

Equal Housing Lender Icon©2014 Opes Advisors, Inc., doing business as Absolute Mortgage Banking. Licensed by the CA Bureau of Real Estate, 01458652 and NMLS 235584. Equal Opportunity Lender. All rights reserved.

Being Pre-Approved is a Must-Have!

In most real estate markets today, if a residential property buyer isn’t fully pre-approved for a mortgage loan, the chances of any seller taking that buyer’s offer seriously is very slim. The reason is probably obvious, but a pre-approval is validation that the loan has been pre-underwritten (or at least it should be), which provides the seller confidence that the transaction will close. In order to become pre-approved, all information submitted on the loan application has to be verified by documentation provided by both the borrower and third parties. In fact, the average file today has over thirty components to validate a loan approval — 30+ components — more than half of which are third party!

pre-approved-loan

A pre-qualification is nothing more than a discussion around a buyer’s loan qualifications. For example, if one uses the AMB 5X Rule, which states that five times one’s gross annual household income equals the approximate loan amount one qualifies to receive, then we know that a $100,000 salary means that one may be able to afford a $500,000 loan. But then employment, income, assets, credit, obligations and declarations all need to be discussed to refine one’s qualifications. Taking the next step towards validating everything then fully vets a buyer’s true qualifications and approval allowances.

Most importantly, the biggest benefit to the pre-approval process is that it empowers the buyer to execute confidently. Think about it; if one has had a thoughtful, detailed discussion and analysis around the largest loan one will likely have, both short and long-term goals need to be taken into consideration. Questions around future employment, lifestyle, family planning, retirement, cash flow, housing goals, etc. all need to be taken into consideration to effectively pre-approve anyone and get them truly excited about a new property purchase. Doing so benefits both buyer and seller and makes for an ideal transaction.

Contact your favorite Absolute Mortgage Advisor or visit us at www.absolutemortgage.com for more information.

Equal Housing Lender Icon© 2014 Opes Advisors, Inc. doing business as Absolute Mortgage Banking.  Licensed by the CA Bureau of Real Estate 01458652 and NMLS 235584. Equal Opportunity Lender. All rights reserved.

Another Great Road to Recovery Mortgage Program

Texas Highway

Back in August of 2013 we wrote Buying Today Despite Short Sale Yesterday, which addressed the fact that those who were victims of a recent short sale (less than two years ago) could possibly obtain a mortgage for purchase or refinance, provided certain elements existed.  The elements for success included: 1. No other credit issues, 2. Solid equity/down payment of 30% or more, 3. Solid reserve funds and 4. solid income.  That program has been extremely effective, especially for non-conforming loans; in fact, an existing client is pre-approved for a $2.5mm purchase and the foreclosure occurred only two years ago!

Now, Housing and Urban Development (HUD) has stepped up their game with a similar program, the Federal Housing Administration (FHA) Back to Work Program.  In short, if a borrower lost their home over 12 months ago due to financial hardship and she/he have re-established credit (or maintained otherwise good credit), then they may qualify to get a new mortgage to purchase a home without the standard two to seven year waiting periods required under conventional mortgage programs.  A financial hardship is defined as a loss in income of 20% or more for at least a 6-month period and it must be documented.  The borrower must also document that she/he has fully recovered from the hardship.  Finally, the borrower(s) must attend a credit counseling class prior to submitting an application.  All other FHA requirements apply as well, but the rates are extremely competitive and help to stretch the qualifications of applicable borrowers.

For complete information on this program or any other mortgage program, contact your trusted mortgage advisor at Absolute Mortgage Banking.