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loanDepot Meet & Greet (Rancho Cucamonga)

Posted on January 13, 2011 by admin

Our Recruiting department invites YOU to our Meet & Greet event, January 21!

Mingle with employees and management, experience the loanDepot company culture and energy, and enjoy some refreshments! This is your inside look to meet some of our great staff and get a feel for what we’re all about!

January 21, 2011
5pm – 7pm
10801 6th St. #210, Rancho Cucamonga 91730
RSVP: careers@loandepot.com

SEE YOU THERE!
www.loanDepotcareers.com

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“Responsible lending” – what it means for you

Posted on January 13, 2011 by admin

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This section explains how the Federal government is helping prevent another financial and mortgage meltdown, and how loanDepot is ensuring that our 25-year history of responsible lending remains untarnished.

Recently, the government began requiring lenders to provide standardized Good Faith Estimates—GFEs. The GFE is designed to make lenders conform to a standardized document and requires that most fees quoted upfront be within 10 percent of the actual fees at closing.

However, irresponsible lenders try to circumvent this with “fee worksheets” and other documents providing estimates not bound by government regulation. Fees can and often do increase significantly by the time your loan closes. These “worksheets” are really just aggressive, misleading and irresponsible sales tactics. If a lender or broker won’t provide the new GFE… find a fully compliant lender who will!

With the SAFE Act, the government also requires minimum standards for loan originator licensing and registration. loanDepot mortgage bankers are all SAFE Act licensed and registered. We’ve also implemented internal consumer protection policies, including a strict “no-steering policy” so employees don’t receive higher commissions for steering our customers into more expensive loans. Nor do we charge application fees or quote impossible-to-obtain teaser rates.

So when shopping for a mortgage, beware of lenders who use aggressive sales tactics, or who won’t provide a government-mandated GFE. Instead, look for a responsible lender like loanDepot, one who provides straight answers and complies with all federal and state licensing and lending policies.

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Factors used for loan qualification

Posted on January 12, 2011 by admin

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Lenders consider four main factors in loan qualification–income, credit, home value, and assets–in determining your ability to pay… and what collateral is available if you don’t.

Lenders use income to determine whether you can pay your mortgage, property taxes, and insurance, with enough left over to cover your other obligations. To use a simple calculation, your housing payment should be about 1/3 of your monthly income. They also look at your employment history including how long you’ve been in your current job and whether your income is from a salary, commissions, self-employment, and so on.

Second, they explore your credit, typically looking at reports from all three credit bureaus:
Equifax, Experian, and TransUnion to see whether your scores and credit history meet the requirements for a particular program.

Next, they look at your home’s value since it’s collateral for the loan. If you’re buying, the appraised value needs to be in line with what you’re paying. If you’re refinancing, it needs to be a certain percentage above what you’re borrowing.

Finally, they look at your other assets. You need to have the money to cover your closing costs, points, property taxes, insurance and so on—plus additional funds to draw from in case you have unexpected expenses or a temporary loss of income. If you’re purchasing a home, you need all this plus your down payment amount.

The guidelines vary from lender to lender, and every situation is unique, so if you have questions, call one of loanDepot’s government-registered mortgage bankers toll-free at 888-337-6888.

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What is an FHA loan?

Posted on January 10, 2011 by admin

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The FHA—the Federal Housing Administration—is a government entity helping Americans finance homes with government-assisted and government-insured loans. Around since 1934, it’s part of HUD—the Department of Housing and Urban Development. It insures lenders in case of default, and encourages FHA-approved lenders to provide financing to customers who might not otherwise qualify.

There are many advantages to FHA financing and many types of FHA loans. For example, the 203(b) loan lets you purchase a home with just over 3 percent down. It’s also easier to use gift funds for your down payment and closing costs. With FHA financing, you can pay off your loan at any time, and qualifying is easier that with conventional financing. You can also refinance with an FHA loan even if your existing mortgage isn’t an FHA loan, so it’s a great alternative if your home’s value has declined or you don’t qualify for conventional refinancing.

• Buy a home with 3.5% down
• Use gift funds for your down payment and closing costs
• Pay off your loan with no pre-payment penalties
• Qualifying is easier
• Great alternative if you don’t qualify for conventional financing

But FHA loans aren’t for everyone. Because the FHA insures lenders against default, they charge an upfront mortgage insurance premium – or MIP – equivalent to a small percentage of the loan amount. The good news is, you can finance the upfront MIP into the loan. The FHA also charges a small monthly mortgage insurance. These insurance premiums collectively help the FHA offset the cost of loans that default. FHA also has specific limits on loan amount. These limits vary by location and change frequently depending on a number of economic factors, so if you need to finance a large amount, check the HUD-dot-gov website or speak with an approved FHA lender like loanDepot to see if you qualify.

If you want to compare FHA loans against other options, feel free to contact us. Our government-registered mortgage bankers will be happy to guide your through the nuances of financing through the FHA.

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What is pre-approval?

Posted on January 7, 2011 by admin

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Getting pre-approved for a mortgage is one of the most important things you can do before you start searching for your home. That’s right – do this prior to looking for a home.

A pre-approval tells you exactly how much home you can buy with a payment that you can afford—and it shows sellers and real estate agents that you’re serious. It becomes a powerful negotiation tool when you find your ideal home because your qualifications have already been reviewed by a lender. It’s the next best thing to having cash.

First, select the right lender. Please don’t take this lightly. Make sure they’re experienced at handling home purchases and have the ability to close your loan within 30 to 45 days. Sometimes, lenders ship loans to centralized processing facilities, so make sure you’ll receive personalized service throughout the process from your loan officer and processor. It’s important that they’re both available whenever you need them.

Next, get pre-approved. Your lender will run your credit and review your income and asset documentation to determine the maximum purchase price and payment you can afford. You’ll confirm the loan program you qualify for, what current interest rates are, and how much you’ll need to pay for in closing costs. Finally, you’ll receive a pre-approval certificate… and you can start shopping!

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Mortgages dip on economic uncertainty

Posted on January 6, 2011 by admin

Bankrate.com chats with loanDepot CEO & Founder Anthony Hsieh about the future of interest rates and more…

Mortgage interest rates dipped slightly this week, as brokers and borrowers combed through recent economic data, seeking clues as to whether the U.S. economy is — or isn’t — on the mend. Read more

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The home buying process

Posted on January 5, 2011 by admin

Buying a home is exciting–and stressful—especially if you’re a first-time buyer! To help you understand this complex transaction, check out our educational videos, loan calculators, and other resources—or call our government registered mortgage bankers!

But first, let’s take a look at the process. Before you start looking, find a good lender and get pre-approved! You’ll know exactly what you can afford, and enjoy a huge advantage with sellers and real estate agents.

As you’re getting pre-approved, decide what loan program is best. Also, select a real estate agent to show you homes in your price range. Once you’ve found the right home, you’ll go through the offer and counter-offer stage, until both of you agree on the price and terms of the sale.

Next, you’ll open an escrow, working with a neutral third party who handles the ownership change and money exchange. Be sure you know how soon you’re required to close, and understand the escrow/closing fees, title fees, and lender loan fees.

Then, lock in your loan to protect against interest rate hikes, making sure you lock in for long enough to cover your escrow period.

Next comes the home inspection and appraisal. The inspection, ordered by your real estate agent, examines the home’s condition and identifies anything the seller needs to fix prior to closing. The appraisal, ordered by the lender, takes into consideration similar homes in your area that have recently sold. This helps establish the home’s value and ensures that you’re not paying too much.

Finally, once everything’s in place, you’ll go to closing and sign the loan documents. A few days later, your loan will fund and you’ll get the keys to your new home!

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What’s the right loan program for you?

Posted on December 30, 2010 by admin

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Selecting the right loan program is very important—and potentially confusing. Whether you select a 30-year fixed, a “hybrid” 5- 1 ARM, a straight adjustable rate loan, or another option–it’s all dependent on many factors.

First, decide what you’re trying to accomplish. Ask yourself some simple questions:

• How long do you plan to own your home?
• Do you need the lowest possible payment?
• Do you need cash out to pay certain expenses?

If your goal is to lower your payment and you plan to be in your home for only a few years, a short-term “hybrid” fixed or an “interest only” loan is better than a 30-year fixed loan. A “hybrid” is a loan where the rate is fixed for a set period of 3, 5 or 7 years, and then becomes adjustable. An “interest only” loan often provides the lowest payment, but of course you don’t pay down the principal.

If you’ve built up equity and your goal is to get cash out of your home, a “cash out” refinance may be the best option, allowing you to pay bills, college tuition, or virtually anything you’d like.

If security is your goal, a traditional 30 or 15-year fixed loan, with payments that don’t change, might be right.

To discuss your individual circumstances with an expert, please call one of our friendly government registered mortgage bankers at 1-888-DEPOT-88. They’ll help you decide what program’s best for you.

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What is a lock deposit?

Posted on December 29, 2010 by admin

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After you’ve selected the right program, it’s time to lock in the terms of your loan so you’re protected from rising interest rates.

One of the most important things to remember is that a rate lock is a two-way commitment between you and the lender. If rates increase during your lock period, you’re rate won’t go up. But if rates go down, your rate won’t be lowered. There’s no re-negotiation. So before you decide to lock, make sure you’re happy with the rate and payment.

Every lender has its own policy regarding rate locks, so do your homework. To lock your rate, lenders typically collect a “lock deposit” of between $500-$700. Lenders require this deposit for two reasons—first, to cover direct costs associated with securing the interest rate on your loan—and second, because it shows them your commitment. It’s your “act of good faith” so the lender knows they can start incurring labor and other costs such as appraisal fees associated with your loan.

Make sure your lender confirms that your “lock deposit” is a deposit credited to your closing costs, and not an additional fee. For example, if your total closing cost is $3,500, and you’ve paid a “lock deposit” of $500, you should receive a $500 credit at closing.

Finally, make sure you understand what happens if your loan gets denied, and get everything in writing from the lender. If dealing with a third party such as a mortgage broker, the lock confirmation must come from the lender.

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How To: Lock in your interest rate

Posted on December 28, 2010 by admin

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Locking your interest rate is an important step in refinancing or purchasing a home. A rate lock gives you the peace of mind of knowing that the rate on the loan you’ve selected is locked in, and you’re protected against rate fluctuations. Once you’ve selected a suitable loan program, ask your lender how to lock the rate. Each lender has its own lock policies and procedures, but the choice of locking is always in your hands as the customer.

A rate lock protects you against rate fluctuations for a set time period–generally 15, 30, or 45 days. Typically, the longer the time period, the higher the rate and loan cost will be. Always ask the lender whether they can close within the lock period. If you don’t close on time, your “locked in” rate won’t be valid, potentially costing you a lot of money.

Some lenders let you lock in the terms when you apply. Others won’t lock your rate until it’s fully processed or approved. There may be restrictions based on product and length of the lock protection, too. Lenders typically collect a “lock fee” or a “lock deposit”. It’s important to understand the difference between the two. A “lock fee” is an additional cost, while a “lock deposit” is credited towards your closing costs.

After you’ve locked your loan, ask your lender for a written lock agreement detailing the interest rate, points, closing costs, and monthly payment on your loan.

What’s the right time to lock? Do you wait, hoping rates will go down? Or do you want to know you’re getting the rate and payment you applied for? Remember—rates change daily, typically rising faster than they fall. If the current interest rate makes sense and you’re comfortable with the payment, go ahead and lock in your loan, and take the risk off the table!

Get today’s interest rates

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    • loanDepot Meet & Greet (Rancho Cucamonga)
    • “Responsible lending” – what it means for you
    • Factors used for loan qualification
    • What is an FHA loan?
    • What is pre-approval?
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* Rate displayed assumes that you are buying or refinancing an owner-occupied single family home, all borrowers have credit scores of 740 or higher, debt-to-income ratios of 35% or lower, asset and reserve requirements are met, and your property has a loan-to-value of 80% or less. The Annual Percentage Rate (APR) is based on a loan amount of $200,000 and may include up to 3 points. (Points include any origination, discount and lender fees.) On adjustable-rate loans, interest rates are subject to potential increases over the life of the loan, once the initial fixed-rate period expires.Please contact one of our Mortgage Bankers at 1-888-337-6888 for a customized rate and payment quote.