[Peter]

America’s biggest lying commander in Chief Kamala Harris. If this incompetent imbecile idiot Kamala Harris can lie on international television with a straight face, I assure you that the BJ GIVER is Chief Kamala Harris will lie to the American people.

https://youtu.be/petsbG-UtUI?si=LlUbw7cV2MhG2AVl

[Peter]

Every skilled and experienced mortgage broker strives to obtain the best mortgage terms for clients. Mortgage brokers perform income computations on the borrower and arrive at the inquiring interest rates. Typically, it depends on the borrower’s income, type of loan, and market dynamics. Here’s how they approach these calculations:

Earning Values

• As part of their function, mortgage brokers determine a borrower’s income to establish the amount that a borrower can seek to borrow and the DTI.
• In most cases, this is how they do it:

Examining Income Sources

Income From Employment:

• With salaried individuals and those on hourly wages, brokerage firms require someone to provide administrative documents such as paychecks, tax returns, and W-2 forms.
• Lenders require employer letters to determine the borrower’s income.
• Usually, consistent and documentable overtime, commissions, or bonuses can also be included.

Income from Self-Employment:

• Mortgage brokers usually ask self-employed borrowers for two years’ worth of tax returns.
• Income tax returns with all applicable cooperating schedules to calculate their average income.
• Mortgage brokers may allow business profits and losses or other financial statements.

Rental Income:

• Rental income can be recognized if a borrower has investment properties.
• In most cases, only 75 percent of gross rental income will be included.
• 25 percent reserved for the risk of vacancies or expenses.

Other Income Sources:

• Common inclusions are child support, spousal support, social security, disability, and investment income.
• Lenders will determine if the provided are stable, documented properly, and likely to last for the next three years.

Gross Monthly Income Calculation Salaried Employees:

• Salaried employees’ gross monthly income is derived from the total annual salary figure by division by twelve.

Gross Monthly Income

• Annual Salary divided by 12 months is the Gross Monthly Income.
• The employer’s employment offer letter and the borrower’s paycheck stubs and W2s determine the annual salary.

Hourly Employees:

• In the case of hourly employees, the income is calculated hourly.
• The hourly rate is determined by multiplying the number of hours worked in a week by 52 weeks and dividing the result by 12.

Gross Monthly Income

• Hourly Rate x Hours Per Week x 52 divided by 12 yields Gross Monthly Income.
• Hourly Rate[Hours Per week] multiple by [52 weeks]

Self-employed:

• For self-employed borrowers, the gross monthly income is usually the average of net incomes, reportedly reflected in two years’ tax returns.

Determining Debt-to-Income (DTI) Ratio

• Every lending institution needs to consider the DTI ratio since it determines the size of a mortgage they can safely extend to a borrower.

Mortgage brokers calculate it against the following formula using the given method:

• DTI Ratio=Total Monthly Debt Payments divided by the Gross Monthly Income ×(multiple by 100.
• DTI Ratio= Gross Monthly Income Total Monthly Debt Payments ×100

Front-End Ratio: The ending ratio limits the percentage of a borrower’s gross income allocated towards housing (homeowner monthly investment, property tax, insurance).

Back-End Ratio: On the other hand, the back-end ratio includes all monthly debt repayment obligations, such as car loans, educational loans, credit loans, and housing costs.

Calculating Mortgage Rates

It is the responsibility of mortgage brokers to compute the interest rate at which a borrower is eligible to borrow upon evaluating the following factors:

• Credit Score

Higher scores get better rates:

• It is generally believed that consumers with higher credit scores will always be charged lower interest rates than those with low credit scores.
• This is because lenders regard very high credit scores as lower risk.
• Therefore, offer better rates to the borrowers.

Loan Type and Term

Fixed vs. Adjustable Rates:

• The stable interest rate charged on fixed-rate mortgages will remain constant for the entire loan period.
• In contrast, the low initial rate in adjustable-rate mortgages (ARMs) is subject to variations due to various market forces.

Loan Term:

One reason short-term loans (like 15-year mortgages) are rated lower than long-term loans (30-year mortgages) is the less risk the lender takes.

Loan-to-Value (LTV) Ratio

Lower LTV Ratios Get Better Rates:

• The LTV ratio is calculated through a simple mathematical operation involving valuing and dividing a property by the loan amount.
• A lower LTV ratio means a higher deposit.
• Hence, a better interest rate.
• This is because the potential risk incurred by the lender is low.

Current Market Conditions

Interest Rates:

• Changes in the wider economic environment.
• Such as the Federal Reserve’s policies, inflation rates, or the bond market, will also affect monthly mortgage rates.
• Mortgage brokers oversee these factors to enhance their rates’ competitiveness.

Loan Amount:

Conforming vs. Jumbo Loans:

• Conforming loans that meet the limits set by Fannie Mae and Freddie Mac are standard loans with lesser interest rates.
• The opposite is true of Jumbo loans.
• Jumbo loans have higher rates due to enhanced risk associated with exceeding these levels.

Using Rate Quotes and Discount Points

Rate Quotes:

• To obtain the best deal possible for the borrower, mortgage brokers source for rate quotes from several lenders.
• Typically, the borrower’s financial profile and the managed rate are assessed against the raised rates.

Discount Points: A borrower may pay discounts before the loan to reduce the interest rate. Typically, a discount point is equal to one percent of a borrower’s loan amount, and this percentage in points can lower the interest rate by around 0.25 percent.

Fees and Closing Costs

Origination Fees: These are charges that the lenders apply to any loan requested by a client, often reaching between zero point five to one 1 percent of the total loan amount.

Other Closing Costs:

• Closing costs include appraisal, title insurance, escrow, and others.
• Mortgage brokers give the Loan Estimate form to explain these costs together with other costs to the borrower.

Providing Loan Estimates

• After the broker retrieves all essential information, they give the borrower a Loan Estimate (LE).
• This document provides the loan details, such as the estimated interest rate, monthly payments, and closing costs.
• It helps the borrower comprehend the total cost of the loan and the various lenders’ offers.

Mortgage brokers calculate borrowers’ incomes and assign mortgage rates to their clients after assessing their financial health, including their income sources, credit rating, and DTI ratio, among other aspects. Afterward, they search through different lenders for the available loan types and most suitable rates for the borrower. Most of the time, they ensure that the borrower can handle their repayment ability and receive the best possible rate considering their income conditions and the market.

[Peter]

A typical commercial lender differs from a residential mortgage lender. This is because they appraise a borrower’s credit differently. The main reason is that commercial loans usually have money. This is to include some more complicated structures. The focus is on the business or investment property’s profitability and risk rather than just the owner’s financial profile. Commercial lenders view credit during underwriting as follows:

Importance of Personal Credit Score:

• The personal credit score of an applicator is only sometimes the greatest.
• Nevertheless, it is still important since the loan is especially important in small business loans.
• The business owner borrows, and the business and the individual are closely intertwined.
• A favorable personal credit report (680+) increases the chances of an application being more likely to be approved yards forward individual credit score.

Assessment:

• Lenders have always used borrowers’ credit scores to decide their inclination toward settling debts.
• Examples are late payments, high credit utilization, collection, and new bankruptcy closings.

Business Credit Score: Key Focus for Commercial Loans: For a business with an established and thick reference credit line with suppliers and optimal purchase volumes at a producer’s (or wholesaler’s) market).

It’s about business identity: The business credit score (from Dun & Bradstreet and other agencies) is more critical than personal. This score indicates the probability of the borrower’s business repaying debts.

Components:

• The creditor’s business score is evaluated based on the company’s repayment performance with suppliers.
• The type of credit availed and the company’s trade credit age.
• A high business credit score is indicative that the business pays its bills promptly and has efficient credit management.

Debt Service Coverage Ratio (DSCR)

Definition:

• DSCR is the most important parameter integrated by commercial lenders to assess a business or investment property’s ability to sustain and repay its debt.
• Debt Service Coverage Ratio is done by calculating the net operating income (NOI) ratio over the total debt obligations (debt repayment as to principal and interest) for a given period.

Preferred Ratios:

• Most lenders prefer a minimum DSCR of 1.2 and above 20%.
• This means the business or property generates surplus income.
• Cash 20% more than required to settle the debt.
• A lower DSCR may automatically compel lenders to offer higher interest rates on the loan.
• Otherwise, the loan could be denied.

Significance:

• This ratio shows how well-placed a financial institution or a property is.
• This is especially true if revenues go down.
• However, loan obligations up to that time must be maintained.

Borrower’s Financial History And Stability

Financial Statements: Lenders analyze financial statements such as balance sheets, income statements, and cash flow statements to evaluate the borrower’s and the business’s financial status.

Cash Reserves: A steady cash reserve is a desirable trait in a borrower as it shows that even in trying times, the borrower can remain active and still make their loan repayments.

Profitability: A business that has consistently made profits over time is a positive factor for lenders since it demonstrates that it can earn enough income to cover its debts.

Collateral: Collateral Value:

• A commercial lender typically needs collateral from the borrowing party.
• This can be real estate, machinery, stocks, or other company assets.
• The amount of collateral significantly impacts the lender’s decision-making process.

Loan-to-Value (LTV) Ratio:

• The loan-to-value ratio compares the mortgage loan to the property’s value.
• When it comes to commercial loans, an investor would aim for a loan-to-value ratio of 65% % to 80% LTV.
• This gives the maximum loan amount of 65% to 80% of the property’s value.

Business and Industry Risk: Industry Type:

• This relates to the risk prevalent in the borrower’s industry.
• Some industries are riskier than others, e.g., restaurants and retail.
• Lenders will demand a higher credit score, more collateral, or even a higher DSCR to minimize this risk.

Economic Conditions: Finally, the lender’s risk assessment also considers the general economic situation and the market situation of the business or type of property that the borrower operates in.

Borrower Experience and Track Record: Business Experience:

• It is generally understood that lenders prefer borrowers with substantial industry experience.
• Or those who are just dealing with the respective property types.
• That particular experience reduces the lender’s risk exposure.
• The more experienced borrowers can run the business efficiently and manage any challenge that may come along.

Track Record:

• A successful history of handling similar projects.
• Businesses can be used to offset poor credit scores or financial statements.
• This is because it indicates the borrower’s ability to perform.

Personal Guarantees: Requirement:

• Most business lending institutions request their borrowers present personal guarantees concerning the amount borrowed.
• Especially where the business is young or the provided financials could be stronger.
• In this case, if the debt is not serviced, the borrower himself has to pay off the provided loan.

Impact on Approval:

• Personal guarantees often help increase the chances of getting loans.
• This is because the borrowers offer personal warranties.
• Even with other weaknesses, such as insufficient business or collateral.

Loan Structure and Terms: Interest Rates:

• In terms of loan interest rates, it is also noteworthy that the borrower’s credit profile.
• This, including personal and business credit scores, directly affects the offered interest rate.
• Better credit scores are usually associated with lower net effective rates.

Loan Amount and Term:

• The risks associated with the individual borrower will influence the loan limits and terms.
• Larger loans or longer terms could restrict certain credit profiles or encourage more stringent credit limits.
• Commercial lenders have a different approach to a borrower’s credit.
• Business and personal credit scores are evaluated along with business health, assets, industry, self, and more.
• However, a good credit history may help one’s access to financing.
• This is because lenders mainly focus on the business side of the individual.

To gain commercial financing, you must have strong personal and business credit, sufficient income, and good collateral.

[Peter]

The Repercussions of Debt Settlement When Applying for a Mortgage

It cannot be denied that many mortgage lenders are generally wary of debt settlement. This is even more so than bankruptcy in certain instances. Here’s why:

Debt Settlement vs. Bankruptcy:

• Debt settlement and bankruptcy are undesirable situations for the borrower.
• However, the two are treated very differently by lenders.
• In a debt settlement, you agree with creditors to reduce the cumulative figure owed.
• This can also be perceived as a case of falling short of your obligations.
• They would be concerned that even though you cannot file for bankruptcy for a certain period after the filing of payment, realizing debts is not applicable is not applicable in the case of debt settlement.
• Debtors can smother their finances and file for bankruptcy anytime after the settlement.

Lender Perspective:

• From the lender’s point of view, the situation’s enormity would have prompted a court-supervised process.
• This is where the debtor was made to undertake a series of steps to resolve their debts.
• This includes filing a request to the court on the minimum waiting period before they can file again.
• Bankruptcy is where a reversal of assets would be substituted for a positive garnishment.
• The courts supervise the process.
• Debt settlement is a reversal of financial obligation entered into by the parties.
• Debt settlement is not through formal legal channels.
• This is what most lenders would be apprehensive of due to possible losses.

How Long Debt Settlement Stays on Your Credit Report

Duration on Credit Report:

• A debt settlement will be reflected on your credit report for seven years.
• Considering the states where the exercise was due and the delinquency that occurred.
• This period can greatly reduce your credit score and chances of getting more credit facilities like mortgages.

Strategies to Rebuild Your Credit After Debt Settlement

Monitor Your Credit Report:

Most of the time, ensure that you review the credit reports of the three bureaus and report any inconsistencies regarding debt settlement reporting.

Rebuild Your Credit Score:

Timely Payment: Be punctual in all of your present payments. Payment history is the most important area affecting the credit score.

Reducing Debt: Effect proper management of outstanding debts and avoid high credit utilization.

Secured Credit Cards: Use a secured credit card to rebuild your credit history. These cards require a deposit and can allow you to develop a positive payment history.

Consult with a Mortgage Broker:

Keep working on equity participation loans. Trying a mortgage broker to help you track down lenient lenders who will allow loans with past debt settlements makes sense.

Consider Waiting and Reapplying:

• Better still, much as the above explanations are compelling.
• The experience of waiting a little longer before going back to the mortgage application process would help you make further inroads to ensure that the damage caused to your credit score by the debt settlement has been minimized.

Moving Forward

Understandably, such hurdles can be annoying, especially after having put effort into attempting to handle one’s debts responsibly. This does not have to be the case since there are things you can do to better your current situation and be able to apply for a mortgage in the near future. Waiting could help improve your credit status, so your chances of getting approved for loans in the future will be very high.

[Peter]

I would you like more information on every and all specific aspects of living costs and financial strategies in California versus Florida. If I was a mortgage broker on commission and work remotely, what would my lifestyle be like living in California versus Florida. Let’s say I had a non-working housewife with three children ages ten, twelve, and fifteen and need a 2,500 square feet home with four bedrooms and three baths with a two car attached garage.

[Peter]

A little of something is a good thing. Too much of something is a bad thing. For example too much sweets, meat, alcohol, pills, etc. is bad for you and can kill you. Same thing with technology. It’s not going to be the same world folks. The whole world is screwed up.

[Peter]

Depends on the wholesale mortgage lender. Regardless, you need to show the 3.5% down payment as verified funds. You cannot count the property tax proration as verified funds for the down payment. Wholesale lenders will allow not to bring the amount of the property tax proration to closing as long as you have the documented 3.5% down payment in your bank account. Here is an informative article on Gustan Cho Associates that will help you understand this better, Rhonda.

https://gustancho.com/property-tax-prorations/

gustancho.com

Using Property Tax Prorations For Down Payment on a House

Homebuyers can use property tax prorations by sellers for the down payment on a home purchase but still need to show they have the funds

[Peter]

To create a single-family home, one needs to consider many factors such as the location, materials used, labor cost and design complexity. Nevertheless, it is not possible to determine how much an average middle-class area costs per square foot.

AVERAGE COST PER SQUARE FOOT

National Average: On average building a standard middle-class house in the US will cost between $100-$200 per square foot excluding land. This price may increase if better quality finishes are used.

Middle-Class Area Specifics:

Basic Construction: $100-150p.s.f.

Mid-Range Construction: $150-200p.s.f.

High-End Construction: $200+p.s.f.

BREAKDOWN OF COSTS

Labor costs vary greatly depending on where you live for example rual areas have cheaper labour compared to urban centres like cities which tend to be more expensive because they have higher population density among other reasons

Materials are also another factor that can affect the total cost of construction. The choice of standard versus premium materials will either lower or raise the overall cost respectively while keeping other things constant and in this case we are talking about main items excluding land.

Site Preparation includes grading utilities permits etcetera all these should be factored into your budget since they contribute significantly towards making sure everything runs smoothly once actual work begins so that there wont be any hitches along the way

Design and architecture can make a difference too when considering what you want for your dream home some people prefer using their own designs where as others go with ready made plans usually provided by architects but then again those who opt getting custom design should expect paying more than those using standard ones normally available through designers therefore choose wisely depending on what suits best according to personal preference or financial capability

REGIONAL VARIATIONS

Northeast coast states like New York City have high prices due to expensive labor and material costs it might cost around 200 – 300 dollars per square foot on average

Midwest on the other hand is relatively less expensive because they have cheaper land and labor costs so it could be as low as $100 – $150 p.s.f.

The south of America offers moderate pricing with the range being around 120 – 160 dollars per square foot

The west coast has higher prices especially in places near the beach line where buildings are affected by natural factors such as hurricanes earthquakes erosion etcetera hence increasing cost significantly this can go upto 150-250 dollars per sq ft

ADDITIONAL FACTORS

Economic Conditions: The current state of the economy can greatly influence material cost and labor availability

Supply Chain Issues: Disruptions in supply chains have recently caused a spike in prices for materials used in construction

Permits and Regulations: Additional fees might need to be paid because of local building codes or permits that need to be obtained which will drive up costs

[Peter]

The latest lawsuit from the National Association of Realtors (NAR) has generated a lot of buzz in the real estate industry, with professionals and stakeholders weighing in on both sides. The suit aimed at traditional rules about how agents get paid, specifically focusing on seller requirements to offer buyer agent commissions through the Multiple Listing Service (MLS). The MLS has long been standard practice but allegedly unfairly inflates sellers’ costs.

Main Points:

Impact on Commission Structures: One of the biggest changes that could result from this lawsuit is if sellers are no longer required to pay the commission for buyers’ agents. Such a move fundamentally alters how transactions are negotiated and agents get paid. Homebuyers might have to pay their agents directly, which could discourage some from using an agent.

Adapting to Change: As you noted above, everyone involved must adapt. Realtors should explain new methods clearly so clients understand potential costs. Those involved in buying or selling property must be educated about these changes to work within them when necessary.

Different Reactions: Some think these alterations make real estate transactions more transparent and fair, while others fear they could complicate matters and increase purchasers’ costs.

Implications for the Future: Nobody knows what will happen next because it’s still too early to tell what effects this case might eventually have over time. There’s talk that it could lead to more localized markets where commissions vary greatly by area or even on a deal-by-deal basis. Brokers may have to develop fresh strategies to stay competitive and continue providing value-added services to their clients.

Undoubtedly, it is a momentous period for buyers, sellers, and agents alike within our ever-changing industry. Therefore, those who cannot adapt shall perish, not those who do.