How to Rock a Family Opportunity Loan

Looking to purchase or refinance a home for your elderly parents who wouldn’t otherwise be able to obtain a mortgage on their own?

Looking to assist a disabled or special needs adult child with housing or his/her own?

Or how about putting a college-bound child into off-campus housing that you decide to purchase?

All of these are both common scenarios and often difficult ones as viewed by the inflexible guidelines in the mortgage industry.  Until now…

The Family Opportunity Mortgage can be a great way to thread the needle of otherwise detrimental occupancy requirements for primary homes, second or vacation homes and investment/rental homes.  And if used in the right situation, the Family Opportunity loan will often permit you to obtain lower rates and lower down payment requirements.

So, let’s get so low in the weeds like sisters Anne and Nancy Wilson of Heart and ambush this beneficial mortgage program today! 

Grateful to know about the Family Opportunity loan?  Give me a like or subscribe on YouTube!

Ooh, barracuda!

Rob Spinosa
SVP of Mortgage Lending

Guaranteed Rate
NMLS: 22343 
Cell/Text: 415-367-5959 
rob.spinosa@rate.com

Marin Office:  324 Sir Francis Drake Blvd., San Anselmo, CA  94960

Berkeley Office:  1400 Shattuck Ave., Suite 1, Berkeley, CA  94709
 

*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate.  In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.

How to Rock a Mortgage Application Without Hurting Your FICO Score

“What’s your rate?”

“How much will I qualify for?”

“Are you a banker or a broker or a lender?”

Nope, nope and nope.  None of these are the #1 question we get before a prospective borrower makes an application for a pre-approval.  So what is the most asked question?

“Will making a mortgage application hurt my FICO score?”

Yep, that’s it.  That’s the one that keeps some otherwise strong and qualifiable buyers on the sidelines and paralyzed by the irrational fear that simply by having a lender make a hard credit inquiry, and access their Equifax, Experian and Transunion scores, that they will somehow see their excellent credit rating vanish in the face of that lone (or multiple) inquiry.

So, let’s walk around all day long and have a little bit of fun busting the myths about credit scores, credit inquiries and mortgage applications.  

Need some solid advice about mortgages and credit scores?  Give me a like or subscribe on YouTube!

Hurts so good,

Rob Spinosa
SVP of Mortgage Lending

Guaranteed Rate
NMLS: 22343 
Cell/Text: 415-367-5959 
rob.spinosa@rate.com

Marin Office:  324 Sir Francis Drake Blvd., San Anselmo, CA  94960

Berkeley Office:  1400 Shattuck Ave., Suite 1, Berkeley, CA  94709
 

*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate.  In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.

Divorce Buyout Refinancing Explained

It’s a sobering fact that nearly 50% of married couples will decide to go their separate ways each year. But what happens when there’s jointly owned real estate involved? And what if that home has a mortgage on it as well? What’s the process for one spouse “buying out” the other and how can any couple best plan for this division?

Obviously, a marital separation is stressful enough.  The short video below aims to make it a little less so, at least when it comes to understanding the home loan options.  Oh, and we rock some Frontiers-era Journey while we’re at it…

Ready to take a journey with us and rock the divorce buyout process?  Please give me a like or subscribe on YouTube!

Break those chains that bind you,

Rob Spinosa
SVP of Mortgage Lending

Guaranteed Rate
NMLS: 22343 
Cell/Text: 415-367-5959 
rob.spinosa@rate.com

Marin Office:  324 Sir Francis Drake Blvd., San Anselmo, CA  94960

Berkeley Office:  1400 Shattuck Ave., Suite 1, Berkeley, CA  94709
 

*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate.  In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.

Is a No Cost Refinance a Free Ride?

Back in the ’70’s, Edgar Winter extolled the virtues of taking a free ride.  But since that time and especially when it comes to transactions in the financial world, most of us have been conditioned to know that nothing’s ever free.

So how does this square with the concept of a “no cost” refinance?  We hear about these all the time and our clients ask for them.  How does the no-cost strategy work and can it offer real benefit in the right situation?  We cover all these timeless questions in this short, fun, rockin’ video:

Decided to take a free ride by my side?  Please give me a like or subscribe on YouTube!

It’s time to begin,

Rob Spinosa
SVP of Mortgage Lending

Guaranteed Rate
NMLS: 22343 
Cell/Text: 415-367-5959 
rob.spinosa@rate.com

Marin Office:  324 Sir Francis Drake Blvd., San Anselmo, CA  94960

Berkeley Office:  1400 Shattuck Ave., Suite 1, Berkeley, CA  94709
 

*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate.  In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.

Guaranteed Rate. Illinois Residential Mortgage Licensee NMLS License #2611 3940 N. Ravenswood Chicago, IL 60613 – (866) 934-7283

Cash Out Refi? That’s the Way You Do It!

This week, I’m covering the basics of cash out refinances, because as rates begin to rise, cash out refinances still offer value to homeowners (where “rate and term” refinances begin to make a less compelling case).  Also, we put a fun spin on the ’80’s hit “Money for Nothing,” because while cash out refinances may offer a really cost-effective way to do home improvement, finance a large purchase or permit consolidation of higher-interest rate debts, the money isn’t free.  Even if you know how to play the guitar…So come rock ‘n’ roll with me on a short, fun and educational review of the basics of a cash-out refinance:

Enjoyed today’s journey?  Please give me a like or subscribe on YouTube!

That’s the way you do it!

Rob Spinosa
SVP of Mortgage Lending

Guaranteed Rate
NMLS: 22343 
Cell/Text: 415-367-5959 
rob.spinosa@rate.com

Marin Office:  324 Sir Francis Drake Blvd., San Anselmo, CA  94960

Berkeley Office:  1400 Shattuck Ave., Suite 1, Berkeley, CA  94709
 

*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate.  In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.

Guaranteed Rate. Illinois Residential Mortgage Licensee NMLS License #2611 3940 N. Ravenswood Chicago, IL 60613 – (866) 934-7283

HELOC or Cash Out Refinance?

HELOC-cash-out

As a teenager in the ’80’s, our dilemmas were a little simpler — should I stay or should I go? — for instance.  But today’s homeowner faces some additional complexities, especially when it comes to deciding the best way to finance a home renovation or other large purchase.

Using the equity in one’s home has always been an enticing way to cost-effectively confront large-ticket expenses, but what’s the best way to convert that equity into cash?  Should you get a home equity line of credit (a “HELOC”) or should you do a cash-out refinance?  We get this question so frequently that I created a short video to cover the basics and have a little fun with one of the most iconic punk tunes of the era:

Decided to stay?  Please give me a like or subscribe on YouTube!

Rock the Casbah!

Rob Spinosa
SVP of Mortgage Lending

Guaranteed Rate
NMLS: 22343 
Cell/Text: 415-367-5959 
rob.spinosa@rate.com

Marin Office:  324 Sir Francis Drake Blvd., San Anselmo, CA  94960

Berkeley Office:  1400 Shattuck Ave., Suite 1, Berkeley, CA  94709
 

*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate.  In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.

Guaranteed Rate. Illinois Residential Mortgage Licensee NMLS License #2611 3940 N. Ravenswood Chicago, IL 60613 – (866) 934-7283

The Four Horsemen of Deals Dead

My wife likes to joke that all I do for my job is talk to people.  “I hear you in there yucking it up all day…” So maybe there is always an element of the truth in jest, but an aspect of these conversations that she does not take into consideration is the near-constant battle I fight fending deals from The Four Horsemen; Delay, Indecision, Unfounded Expertise and The Unreasonable Pursuit of Perfection. When these vigilantes appear over the horizon of any real estate transaction, having a powerful defense can turn them away and save even the most vulnerable purchase or refinance. 

The enemies of our real estate transactions can be real persons; buyers, sellers, family members, agents, lenders, underwriters, appraisers — you name it.  But also, and more often, the real villains can be the thoughts and actions (or inactions) of those same parties. When this is the case, I have observed over my career that the destructive forces loosely fall into four categories:

Delay

There it is in black and white, written into our contracts: “Time is of the essence…” Delay, intentional or head-in-the-clouds inadvertent, is a huge risk to all real estate transactions. Providing necessary documents or signatures a day (or a week…) late may seem like no big deal at the time, but the real estate clock is always ticking. In a sales capacity, we walk a fine line. Trust us, we don’t want to be pushy. But you know what we want even less than being a backbreaker? The conversation about the additional costs incurred due to the seemingly innocuous delay you introduced when you thought you had all the time in the world. Oh, and those dates written into your contract? The ones by which you must perform? You may have gotten lucky before and you may get lucky again, but know that eventually your roulette game of missing contractual dates will land upon a counterparty reaper who will cut you no slack. And when the bell tolls that time, it will toll for thee.

Indecision

Teddy Roosevelt famously said, “In any moment of decision, the best thing you can do is the right thing. The next best thing is the wrong thing. And the worst thing you can do is nothing.” I would agree that when you engage in the serious business of real estate buying, selling or refinancing, you should do so with a firm understanding that you WILL be required to make important decisions. Yes, you can entrust your agents to help, but you cannot stay on the white picket fence forever. A trait I’ve noticed among my most successful clients? Resolve. When decisions are made, they are made AND done. Progress can then be made from that point. But to not decide, you must delay and if you do, you will hear the hooves of the Horsemen just the same.

Expertise, Unfounded

The internet is a wonderful thing. But as I write this today, there are otherwise smart people who, in the middle of a global pandemic that’s killed 600K+ Americans to date, are taking medications their very own doctors would implore them not to take. If some of our clients would be willing to bet their own health they can outsmart their medical doctors do we seriously think, for a minute, that they’re not also “doing their research” about their transaction, their property and their loan? Now, I am all for seeking an education on all matters important. Knowledge gained in this manner has the benefit of making one conversant with the pros — it allows us to communicate at a higher level and this, in turn, earns us respect and benefits us with the return of more precise answers. But I could read a thousand web pages about replacing my water heater. I could watch a hundred videos on how to do it. Yet make no mistake that if I attempted to actually perform the replacement I would be at great risk of making mistakes and getting in well over my head the instant something didn’t go to plan. Because the simple fact is, unless and until I have performed dozens and maybe hundreds of water heater replacements, the seasoned plumber is the guy/gal with the right training, the right tools, the right tricks, the right intuition and the right finishing touches. OK, you say, “I’ve hired a pro but I don’t really trust that person.” Sorry, but the burden is still on you. Make another and a better decision. Without delay.

The Unreasonable Pursuit of Perfection

It is my opinion that if you asked any sizeable group of even the very best real estate professionals what percentage of all of their deals go absolutely perfectly, the number would be very small. Sure, you’d get some sporadic total success stories, but the vast majority of closed deals would have instead come with their expected twists and turns, drama and excitement. Because real estate transactions are inherently complex, it’s important to embrace an attitude of “controlling what you can control” and being flexible in the face of the factors you cannot control. Buyer, sellers and homeowners who have an unreasonable expectation of perfection or who demand that the universe bends to their will are often setting themselves up for failure. Sure, we should all strive for the best and we should make every effort to promote that outcome, but when things do not go our way, most often it is not personal. It is also not the end of the earth. Can we adapt, adjust our sails and keep the greater goals intact? If we can avoid letting the perfect be the enemy of the good, almost always the answer is, “Yes!”

If you are a consumer looking to buy, sell or refinance real estate, there are many, worthwhile steps you can take to help your cause. There are also a few surefire methods of self-sabotage, as above. The best of us professionals work to impart our knowledge and experience to achieve the outcome for which we are hired and if you one day hear something along the lines of, “I understand that’s what you’ve heard or read, but that’s not the way this will play out and it’s time to decide what you’d like to do, even if it doesn’t seem entirely ideal…” This is not some long-winded way to hear ourselves talk for the better part of the day, but instead to send a concise signal to the sixteen galloping hooves that they are not welcome here and it’s time for them to turn back. You may not hear them, but we do.

Still they ride,

Rob Spinosa
SVP of Mortgage Lending

Guaranteed Rate
NMLS: 22343 
Cell/Text: 415-367-5959 
rob.spinosa@rate.com

Marin Office:  324 Sir Francis Drake Blvd., San Anselmo, CA  94960

Berkeley Office:  1400 Shattuck Ave., Suite 1, Berkeley, CA  94709
 

*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate.  In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.

Guaranteed Rate. Illinois Residential Mortgage Licensee NMLS License #2611 3940 N. Ravenswood Chicago, IL 60613 – (866) 934-7283

Refinancing a Jumbo Mortgage After a COVID Forbearance

Despite some recent setbacks that see COVID cases increasing, many of us are optimistic that vaccination rates will continue to go up and all of America will eventually commit to getting the worst of the virus behind us once and for all. There is no doubt that as we headed into the summer, we could feel the economy coming back on line and the country getting back to work. Sure the recovery has been uneven, but compared to the uniform bleakness of last summer, there could only be reason for hope this time around.

Not surprisingly, the progress we’re seeing in the general economy has carried over to what we’re seeing in the mortgage industry — many homeowners who took advantage of COVID forbearance and payment deferral plans are now back to work, back on their feet, seeing those arrangements draw to a close and contemplating their best options for long-term, future financing. This happens to coincide with an ongoing low rate environment, and that has opened the door to a refinance for a good percentage of owners. But wait… If a borrower has had a recent forbearance or deferral, and has a jumbo loan, can he or she even refi at all?

The answer is “Yes!” But if you have had a forbearance or deferral plan, you have a jumbo loan and you are out there researching a refinance, you are very likely going to get some conflicting information. A key thing to remember is that not all jumbo lenders are created. Because they are not required to follow the “Agency” guidelines, that is, the rulebook that governs conforming loans as dictated by Fannie Mae and Freddie Mac, jumbo mortgage lenders will have different demands for refinancing post-COVID.  Here’s what we’re seeing for the most lenient of our investors:

Repayment Plan

The homeowner must have completed the full repayment plan or made at least three consecutive timely payments (and not missed any other payments under the program).

Payment Deferral

The homeowner must have made at least three consecutive timely payments following the effective date of the deferral agreement.

Modification Trial Payment Plan

The homeowner must have completed the trial payment plan.

If you are in doubt about whether or not you will meet the requirements above, get in touch and we can figure it out — often without any credit checks or exchange of any other personal documents. From there, if a refinance looks promising, the process is IDENTICAL to the one employed by a borrower who has not gone through any sort of hardship plan. We understand the nature of these inquiries and the place from which they stem. If you need a hand with your scenario, extend yours to us today.

Wash your hands,

Rob Spinosa
SVP of Mortgage Lending

Guaranteed Rate
NMLS: 22343 
Cell/Text: 415-367-5959 
rob.spinosa@rate.com

Marin Office:  324 Sir Francis Drake Blvd., San Anselmo, CA  94960

Berkeley Office:  1400 Shattuck Ave., Suite 1, Berkeley, CA  94709
 

*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate.  In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.

Guaranteed Rate. Illinois Residential Mortgage Licensee NMLS License #2611 3940 N. Ravenswood Chicago, IL 60613 – (866) 934-7283

Divorce Buyout Mortgages

I don’t think it would have surprised many married couples to learn, as they worked from home in a room that may have doubled and tripled as a dining room, nursery and rec center, that divorce filings were up 34% over the first half of 2020 and as pandemic despondency set in and influenced nearly every aspect of work, home and social life.

I would be the last one to make light of the stresses that COVID imposed on marriages and households, but instead I did see this unique time as equally opportune for shining a bright light on how divorce buyout mortgages work.  These types of transactions constitute a percentage of the refinances we do each year and particularly at such critical junctures in our clients’ lives, it’s helpful to be a source of reliable and reassuring information.  An equity buyout mortgage may enable one spouse to retain the family home and leave that part of their world intact while also allowing the spouse who is “bought out” to begin the next chapter of his or her life.

Sometimes it’s most helpful to use an example to illustrate how a divorce or equity buyout refinance might work.  Let’s say a married couple purchased a home together for $500,000 and made a down payment of 20% of the purchase price.  They jointly had $100K in equity (aka, “ownership”) and they started with a $400,000 mortgage at the time of purchase.

Fast forward to the depths of COVID and this couple decides to divorce.  By that time, they have paid the mortgage down to $380,000 and the home is appraised at $540,000.  Their equity position is now $160,000, or $80K per spouse.  In order for one spouse to buy out the other, a mortgage of $460K would be necessary ($380K + $80K).  But some things need to happen first.

In any divorce situation, it’s critical that the spouses/borrowers are working from an enforceable divorce decree.  A loose or informal separation agreement won’t work for a mortgage lender.  Without a formal separation document, a home loan originator would have additional concerns about the future disposition of assets, spousal support, etc.  Once the marital home’s status is outlined in the divorce decree, the spouse who will keep the home can work with a lender to determine how a buyout refinance needs to be structured.  Sometimes the couple will agree on a specific equalization payment and sometimes a percentage of the appraised value will dictate how much it takes to buy out the spouse who is leaving the home.  As long as the payout amount goes directly to the departing spouse, the loan is not considered a cash-out refinance, and this helps with both the rate and the maximum loan-to-value (LTV).  This is important because most often now one of the spouses will be solely carrying the housing payment and this can sometimes also be compounded by the additonal debt burden of paying spousal or child support.  Lining all of this up at the pre-approval stage and even before the decree is finalized is helpful to some.  After all, if the divorce is structured to give home to one of the spouses and that person cannot afford to support the payments, it is setting the family up for failure.

Navigating a divorce buyout scenario often requires careful planning and always benefits from clear advice.  We’re here to help at any stage of the process, understand the inherent difficulty in these situations and can work with all parties to foster a better understanding and clear a path to success.

You can go your own way,

Rob Spinosa
Senior Vice President of Mortgage Lending

Guaranteed Rate
NMLS: 22343 
Cell/Text: 415-367-5959 
rob.spinosa@rate.com

Marin Office:  324 Sir Francis Drake Blvd., San Anselmo, CA  94960

Berkeley Office:  1400 Shattuck Ave., Suite 1, Berkeley, CA  94709
 

*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate.  In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.

Guaranteed Rate. Illinois Residential Mortgage Licensee NMLS License #2611 3940 N. Ravenswood Chicago, IL 60613 – (866) 934-7283

Buying a Home All Cash, Then Getting a Mortgage

Back in a real estate market a long time ago and in a mortgage galaxy far, far away — otherwise known as 2009/2010 — some buyers needed to purchase a home with cash, then hope to refinance after they had the keys in hand.  The reason for this?  Bad credit?  Nope.  Extinction of stated income loans?  Sorry, try again.  The reason was often that the homes were not eligible for financing — many had been ravaged by the neglect of economic downturn.  Plumbing was torn out, there were holes in the walls and a good number of the properties that came on the market through short sales, foreclosures and otherwise were just in various problematic states of disrepair.  They could not pass the appraisal test for “as is” condition, and so buyers needed either a private money (“fix and flip”) loan or cold hard cash in order to make the purchase.

In response to market conditions, a guideline provision known as “delayed purchase financing,” or “delayed purchase” or “recoup of funds” was implemented.  This allowed a homebuyer to get what was essentially a cash-out refinance shortly after buying a home with cash.  Heretofore, it had not been possible to get a cash-out loan within the first six months of ownership — sort of an industry standard also aimed at preventing fraud.  But with the volume of homes purchased “free and clear” out of necessity, the lending guidebook needed to adjust its sails to reality and create a finance option for buyers who ultimately desired to have a mortgage.  The delayed purchase finance exception became reality.

Flash forward to 2021, and many of California housing markets are demanding the benefits of delayed purchase financing for an entirely different reason — fierce competition.  Buyers today feel they are being forced to make cash offers to appear most attractive to sellers who have lots of choices.  And in a world where certainty and speed are highly desirable, cash is king.  I’m not kidding you when I say that houses worth $3MM or more routinely sell all-cash in our area.  But at the end of that luxurious day, some of those buyers still hope to put a mortgage, at today’s low rates, on the property and recoup some of their cash investment.  So how do they do it?

How Does Delayed Purchase Financing Work?

The question above can best be answered by saying that if you think of this transaction JUST LIKE a purchase money loan, you will be very near to the truth.  That is, the income, assets and credit you’d need to qualify if you were buying and financing the home traditionally still all apply if you are doing delayed financing.  But like with all things mortgage, there are  a few exceptions, potential snags and special considerations…

Down Payment

When you buy traditionally, you have a down payment and a mortgage and the two amounts added together total your purchase price.  But when you finance after purchase you’re just obtaining a mortgage and the “down payment” is already converted to equity (synonymous for “ownership”) in the home.  So remember, if you buy a home for $500,000 and you seek to use the delayed purchase finance exception, you’re not getting a loan for $500K, but probably $400K or less (this would be equivalent to an 80% loan-to-value and 20% down payment, for example).  This may seem obvious but it can get lost in the shuffle of conceptualizing the recoupment of funds.  You’re recovering what you would have otherwise financed, not the full purchase price amount.

Gift Funds

Let’s paint a common picture.  Sometimes given the competitiveness of the market, a young couple seeking to buy a home might lose out on a number of bids.  Maybe they even have 20 or 25% to put down, but still, time and again they are outbid.  Finally, their generous parents swoop in and agree to help them buy the home all-cash so that they have an edge and, lo and behold, they win this bid.  Next, our young couple goes to refinance the home with the delayed purchase finance exception and we ask from where the funds to purchase came.  “Oh, that was a gift from our parents…”  Well, now we have an issue because technically gifts have no expectation of repayment.  So in structuring the acquisition, it’s important that our buyers understand the implications of source of funds, particularly when it comes to gifts, and how to otherwise structure their purchase so they can recoup via mortgage financing later.  Get in touch if you have this scenario yourself.

Reserves

Another potential asset hiccup occurs when delayed financing coincides with a jumbo loan amount.  As we’ve discussed in prior blogs, jumbo loans require asset reserves.  If a cash buyer delves too deep into his savings to buy a home with cash, he may come up short on the assets that were earmarked for meeting the reserve requirement.  The funds are no longer liquid assets, but instead equity in real estate and cannot be considered as reserves.  What’s happened here is that this buyer’s assets have been reclassified as equity.

Rate Differences?

Some scenarios and lenders will price out a delayed purchase differently than a traditional purchase.  Usually where this happens, the rate on the delayed purchase would be higher.  That’s because these lenders will view these transactions like a cash-out refinance instead of a “purchase money” loan.  And in the realm of lending, a cash-out refinance is perceived as riskier and thus it comes with a higher rate.

It’s important to begin with the end in mind when contemplating delayed purchase financing.  Yes, it’s a great way to get a jump on making a competitive offer on a home, but adding the mortgage later is not exactly the same as adding it at the time of purchase.  Because of this, discussing with a mortgage professional how the end loan will look before making the leap into an all-cash purchase is the best strategy.  The good news is that you can still pre-approve for the loan in advance of your purchase.  If you feel that a cash offer is going to be what’s required to prevail in your market, getting a pre-approval for a delayed finance mortgage is exactly what you should do. 

Don’t delay,

Rob Spinosa
Vice President of Mortgage Lending

Guaranteed Rate
NMLS: 22343 
Cell/Text: 415-367-5959 
rob.spinosa@rate.com

Marin Office:  324 Sir Francis Drake Blvd., San Anselmo, CA  94960

Berkeley Office:  1400 Shattuck Ave., Suite 1, Berkeley, CA  94709
 

*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate.  In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.

Guaranteed Rate. Illinois Residential Mortgage Licensee NMLS License #2611 3940 N. Ravenswood Chicago, IL 60613 – (866) 934-7283