If you would like to experience the United Lending difference please contact any one of our Loan Origination Professionals, who will be happy to guide you through the loan process, and assist you in making home ownership a reality.

The United Lending family came together and led all teams in fundraising – contributing $27,325 to the $400,000 total.  Along with fundraising, United Lending employees also participated in the race, peddling a combined 370 miles, and fully staffed one of the pit stops- assuring that all the riders were well taken care of.

Big thanks to Jan Hill, Kevin Ginsberg and all those who helped make this wonderful event a success.  We had a fantastic time supporting a great cause and look forward to participating next year!!!

Breast cancer rages on, but we are finding a way to do something about it in our community.  For more information on how you can participate and contribute please check out the Mamma Jamma home page.

Most folks don’t know or understand the markups on mortgage loan that are related to the risk of the loan as perceived by mortgage giants, Fannie Mae and Freddie Mac.  It is important to know these risk factors and what impact they can have on your mortgage.  Below is a nifty little chart that exemplifies the majority of Loan Level Price Adjustments.  It clearly illustrates where the government perceives the highest risks when it comes to mortgages.

The Government Is Marking Up Your Mortgage Rates

In a recent article I read, titled “Your mortgage rate is treated like auto insurance”, it talked about how conforming mortgages are subject to “risk-based pricing” called Loan-Level Pricing Adjustments.
LLPAs work similar to how auto insurance works.

An excerpt:

In the world of auto insurance, “riskier” car owners pay higher rates for insurance. The sports car pays more than the minivan; the street-parker pays more than the garage-parker; and the low deductible pays more than the high deductible. Instinctively, this makes sense.
The same concept applies in the world of mortgages. The more risk that you — as an individual — represent to Fannie Mae or Freddie Mac, the more you will pay for your mortgage.
Read the full article on the HSH website.

See How Much YOUR Loan Is Marked Up!

It is important to note that not all loans have markups or LLPAs. I can walk you through it by phone or email anytime.

Click here to view:

mtGharmony commercial

Social Security taxes have been reduced in 2011

The Social Security tax withholding rate has decreased from 6.2 percent to 4.2 percent for all employees for 2011. This 2 percent tax reduction is applied to employee wages up to the Social Security wage base of $106,800. Any individual earning $106,800 or more in wages in 2011 will receive a benefit of $2,136.

If there are two spouses with wage income, each spouse will derive this tax benefit. Self-employed individuals will also receive the 2 percent tax reduction as the Social Security portion of self-employment tax will be 10.4 percent as opposed to 12.4 percent. Medicare tax of 1.45 percent will continue to be withheld on all wage income with no ceiling (2.9 percent self-employment tax).

Employers continue to pay 6.2 percent Social Security tax on employee wages. This provision replaces the Making Work Pay Credit in effect for 2009 and 2010 that provided a credit of up to $400 for single taxpayers and up to $800 for married joint filers.

Chad Bowman
VA Loan Specialist
U.S.M.C. Veteran
512-646-0800

chad@thevateam.com
www.theVAteam.com

We at United Lending are extremely excited to announce that we have been recognized by the Austin Business Journal as one of the top mortgage companies in the Austin area!

It is our belief that we achieved this notoriety in just two short years, by strictly adhering to our mission statement of striving to provide unparalleled customer service to our clients and their Realtor®.  Our hand-chosen in house processing and underwriting teams allow us to keep control of the file and give our clients the most accurate loan information at any moment.  Our proven systems make the process extremely smooth, allowing our loan originators to concentrate on service and relationships.

We would like to take a moment to thank all our clients and partners who have made this possible for us.  We would like to sincerely thank each and every one you for allowing us to serve you.  We can honestly say that it is an honor.

In addition we would like to thank our entire staff.   It took a joint effort and true TEAMWORK to achieve this recognition.  Great people make a great company and we believe that we have the best!

November 13th Chad Bowman with The VA Team at United Lending will be David McMillan’s guest on Real Estate Radio on KLBJ 590 AM at noon.  Chad is our in-house VA Loan Specialist and he’ll be answering questions about the VA Home Loan Program as well as the Texas Veteran Housing Assistance Program.  VA is still 100% with no down payment and no mortgage insurance and the Texas Vet rates are the lowest they have ever been.  Chad has specialized in VA loans since 2004 and has dedicated his mortgage career to supporting Texas veterans with the home loan benefits his fellow veterans have rightfully earned.  Call with your questions this Saturday!

Rates are Historically Low.  This statement cannot be overvalued.  Low interest rates reduce your monthly mortgage payments for the term of your loan.  Savings over time can be in the 10s of thousands on a 30 year mortgage.  Alternatively, it can increase your purchase power, by allowing you to buy more house due the savings in mortgage interest.  This is an opportunity that will not last as the national economy improves and mortgage interest rate rise.

The Price is Right. Prices are suppressed. While the bottom of any market cannot be found until it is gone, we are no longer seeing a decline in housing prices over the previous year.  This means that you as a buyer can feel confident you are getting a good deal and not feel anxious over any loss in value.   You should take advantage of a market that is poised to grow and gain equity.

Choices, Choices, Choices. The resale home inventory right now is plentiful.  This means as a buyer you have many more options than usual.   This larger selection of homes allows you to determine the best home that meets your family’s needs.  You have the ability to be more selective.  In addition, the increase in competition generally makes sellers more conciliatory in negotiations to pre-approved buyers.

Economic Growth.  Presently Austin’s economy is ahead of the recovery curve.  Our local economy is often cited as the best in the country.  Austin’s job growth is 2.3% year to date for 2010; that means that more than 2,500 new jobs were created in the first 9 months of 2010.  Our unemployment rate is 3% less than the national average. Austin’s economy is out performing other cities and the future is even brighter.

The current market conditions add up to savings and investment opportunities that rarely come together. You can invest now while the market is beginning to recover, and in turn, reap the recovery gains over the next few years.  This opportunity is available to all those who are willing to see beyond the national press and look locally for the best deals.  Remember, you wouldn’t wake up and turn on CNN to get a weather update to determine how to dress for the day you would turn on the local news to find out how to dress appropriately.

Michael Brandt

United Lending, LLC

NMLS# 202935

512-922-3144 cell

512-592-5462 ofc

512-623-6223 fax

michael@unitedbrandt.com

www.unitedbrandt.com

Let’s start with a major change in employment and income documentation.  All buyers whether self-employed or not now have to provide two years of personal tax returns with all schedules.  They have to sign an IRS Form 4506-T which gives permission for the lender to request copies of the transcripts of their past two years tax returns from the IRS.  This is to ensure first off that the returns have actually been filed and secondly that the returns provided to the lender match those on file with the IRS.  In the past, a 4506-T was only executed in the case of a post-closing audit.  The implementation of this requirement has opened the door for several potential issues that can cause buyers to be delayed or even denied.  Potential issues can arise if returns have not been filed, monies owed to the IRS have not been paid or the returns submitted to the lender do not match the IRS transcripts.  If a borrower is on a payment plan with the IRS for monies owed, the payment plan must be documented as accepted by the IRS in writing and the monthly payment counted in the borrower’s debt-to-income ratios.

Employment on every borrower will be verified the day of closing.  Please, please do not quit your job.  This one might seem obvious but IT HAPPENS!

Moving on to assets, a big issue that has changed the approval process is the requirement of every borrower to submit bank statements (in the past we had the option of doing verifications of deposit directly to banks to confirm current and average account balances).  Deposits that are not payroll-related or clearly a direct deposit from a pension, social security or other similar sources have to be explained and properly documented.  Deposits that cannot be properly documented have to be subtracted out of available funds.   Borrowers who make numerous cash deposits often have a hard time providing acceptable paper trails.  The logic behind making sure that funds for closing are sourced and seasoned is to ensure that the borrower is not using borrowed funds or credit card cash advances or anything along those lines as all of these are considered unacceptable sources for down payment and closing costs per loan guidelines.  So if you are considering buying a home in the near future, keep this in mind and do your best to keep those bank statements looking clean!  And remember, direct deposit is your friend!

You will more than likely have to write one or more letters of explanation.  Every borrower writes one to explain all inquiries made on their credit reports and whether or not new accounts were opened as a result of the inquiries.  You may have to write one explaining why the address on your driver’s license does not match your current address.  You may have to write one explaining a job gap.  You may have to write one explaining derogatory credit.  The list could go on and on.  Just know that pretty much nobody is immune from this one.  As silly as they may seem, they are requirements in many cases so my advice is to just laugh while you type and sign J.

These are just a few of the many fun parts of the mortgage loan approval process that continue to keep us all on our toes.  There are more disclosures to sign, more steps that go on behind the scenes in processing and underwriting than you could ever believe, more compliance requirements and constant guideline changes.  But at the end of the day, all we can do is smile and remember that borrowing hundreds of thousands of dollars is a big deal.  And we should do all we can to prove that we have the intention and the ability to pay that loan payment every month.  And I am happy to be right there with you, laughing away as we put the pieces of the puzzle together.  Because no matter how much the industry changes and no matter how many license exams I have to pass or documents I need to hunt down for my customers, I absolutely love what I do and I love helping my customers get to the closing table and get the keys to their new homes.  There is just nothing else like it J.  So bear with me when you feel like you’re going through a full body search and a complete personal audit.   When it is all said and done, trust me that it will have been worth it.

–Melanie Taliaferro

Mortgage Loan Originator

United Lending LLC

512-825-1196

melanie.taliaferro@unitedlendingusa.com

www.melanietaliaferro.com