3 Ways to Help Speed Up the New Mortgage Process

3 Ways to Help Speed Up the New Mortgage Process

The new “Know Before You Owe” or (Tila Respa Integrated Disclosure) rule by way of the Consumer Financial Protection Bureau (CFPB) has begun on October 3, 2015. The new mortgage disclosure rule replaces four disclosure forms with two new policies, the Loan Estimate and the Closing Disclosure. Though the rule doesn’t only bring the introduction of these two new forms, TRID will also change the way that real estate transactions are processed and closed. As a homeowner, it’s best to know what’s needed of you so that your side of the process can be expedited as much as possible. Not to mention that the new forms are easier to comprehend. The TRID rule also requires that you get three business days to review your Closing Disclosure and ask any questions you may have before closing on the mortgage. Here’s how to navigate the mortgage process on a fast-track with the new “Know Before You Owe” rules: Expect New Forms After you’ve signed on for your first mortgage, with the new policy, there will be a couple of documents immediately sent your way for your needs. Know what’s headed your way so you have a mental inventory if you don’t receive any of the listed documents below. You will receive the Loan Estimate (LE) no later than three business days after an initial application. You will receive the Closing Disclosure (CD) at least three business days before closing. The Loan Estimate and Closing Disclosure outline the consumer’s monthly payment, the costs of getting a mortgage, the costs to close and other important information about the loan. Know the New Timelines...
What is an REIT and is investing in one right for you?

What is an REIT and is investing in one right for you?

  What is an REIT and is investing in one right for you? A REIT is a Real Estate Investment Trust. These are companies that finance or own real estate that generates income such as a hotel, a hospital, shopping malls, storage centers, or apartment buildings. Similar to the structure of a mutual fund, a REIT can provide investors from all types of income diversification and long-term financial growth. REITs usually pay all of their taxable income out as dividends to their shareholders, which in turn, the shareholders pay income taxes on said dividends. REITs provide a way for investors to earn a share of the income generated by a commercial real estate project without ever having to purchase commercial real estate themselves. In fact, many REITs are publicly registered with the SEC and traded on the stock market. These are what you would call publicly traded REITs. Some others are registered with the SEC yet not publicly traded. These are what you would call non-traded REITs. This is a very important distinction between the multitude of different kinds of REITs. Before investing, you should always know whether or not the REIT is publicly traded or not, and how this could affect your risk vs. reward. REITs offer investors a number of rewards which include, Dividends: Stock exchange-listed REITs have provided a stable income stream to investors. Adding Diversity to your portfolio: Liquidity: REIT shares that are listed with the stock exchange can be easily bought and sold- the same is not true for ones that are privately listed. Performance: Over long term investment, the stock exchange listed REIT...
Top 10 Cities for Millenial Home Buyers

Top 10 Cities for Millenial Home Buyers

I hear it all the time, “kids these days.” or “I can’t find a decent executive assistant because millennials are so entitled.”. Millennials take a lot of heat for being entitled, unmotivated, and over-educated. Many claim that millennials would rather live at home than move out or rather rent than commit to a home. These people are vastly mistaken. The millennial generation hit the job market during one of the greatest recessions of all time- and while many past generations have endured similar problems, the millennial generation is unique the sense that they are facing a globalized economy in which large corporations can outsource jobs to foreign nations for much less than they could pay a recent college graduate here in the United States. On top of that, due to the recession, they also have to compete with candidates who are 10-20 years their senior who lost their jobs for the same entry level positions. They got stuck in a catch 22 where no one would hire them after graduating college because they “lacked experience” which they obviously could not get without someone hiring them. So it’s not that millennials are disinterested in buying and owning their own home, it’s more likely that they are simply not sure if it’s possible. The issue lies in the fact that roughly 97% of them need a home loan and this can be tricky when they are just starting their careers, or possibly still working a part time job that they are overqualified for while they seek full-time employment in their field of choice. BUT, there is good news! According to Realtor.com...
Things to Consider When Transitioning from  Rent to Mortgage for the First Time

Things to Consider When Transitioning from Rent to Mortgage for the First Time

Moving into your first home is an exciting time but it can also come with an array of worries. There’s many things to consider when transitioning from renting a property to owning one. Often, the thrill of moving into your own home can blind you from considering certain factors in the process. Here are a few things to take into consideration when looking to buy your first home: Look at your expenses in total When building your housing budget, take into consideration all of your expenses as a whole rather than just your mortgage payments. One of the most nerve-wrecking things as a home buyer is unaccounted for bills. To avoid that issue, take into account your expenses in total so that you can budget correctly. Consider your mortgage payments, interest, possible taxes and insurance, and of course your utilities. You’ll also want to take into account your transportation costs. If you’re living in a metropolitan city then your monthly public transportation costs stay at a pretty standard rate but if you own a car then you’ll need to consider car payments as well as a gas budget. Create a must-have checklist Home buyers can have a tendency to fall in love with the feel of a home and often ignore the necessities that they required in a home from the start. Make a checklist before beginning your search of the things you need in a home and the things you’d like to have so that you know the difference. It’s always great to have a good feeling about a prospective home but you don’t want to buy a...
The Middle Class Squeeze – is upward mobility a thing of the past?

The Middle Class Squeeze – is upward mobility a thing of the past?

It’s no secret that even though the economy is recovering many Americans remain strapped for cash. Living costs are on the rise while wages remain stagnant, forcing families with median incomes to do more with less in order to maintain their lifestyle. This is what economists refer to as “the middle class squeeze”. This phrase captures the financial pressure felt by those with stagnant incomes in the face of higher health care, child care, education and housing costs. This tough circumstance prevents economic growth and has the middle class feeling overlooked by policymakers. Addressing the squeeze requires programs for the middle class that increase access to credit and boost purchasing power without forcing lower middle class families to compete with poorer families for benefits. Let’s use real estate as an example. According to the Center for American Progress, middle class incomes fell 8% from 2000-2012, yet real estate costs rose 27% in that same period. This affects current homeowners and renters alike. Smart policy would seek to alleviate the financial burden of increased housing costs by providing access to credit and affordable mortgages for prospective homeowners, allowing for loan modifications that reduce principals and creating affordable options for renters. Similar aid packages could help business owners interested in commercial real estate for their companies. The federal government recognizes that the middle class squeeze is real, and is taking steps to expand credit access and make homeownership more affordable. In May of 2014 the Federal Housing Administration (FHA) announced Homeowners Armed With Knowledge, or HAWK, a plan designed to provide greater access to homeowners loans and save homebuyers approximately $325...
Why LA May Be The New Silicon Valley

Why LA May Be The New Silicon Valley

While people from around the world are drawn to the City of Angels for its movie stars, sunny weather and food; recently, people from up north are attracted to LA for different reasons. Silicon Valley, ground zero for tech and billion dollar “unicorns”, has become a competitive sandbox; so the nature of the startup industry has led some adventurous young companies south to Los Angeles. Entrepreneurs are started to get wind of the wealth of opportunities Los Angeles presents that Silicon Valley now lacks from overcrowding. Here are some of the reasons why they are spending more time in Southern California. The Electricity Jason Zuccari, president and co-founder of the app Sweeble, is drawn to Southern California because of the people. After throwing his party at the world-famous Chinese Theater in Hollywood, with more than 500 people in attendance who had already been using his app; and possibly more who hadn’t heard of it yet. “There’s a lot of huge brands down here that we’ve been working with,” Zuccari says. “Being able to have that electricity with it has made it a thrill and has energized the company.” The Access Some of the biggest movers and shakers in the world, especially in online and digital media, are based in L.A. Alex Gold, co-founder of BuzzStarter, states that capturing top bloggers and publishers in L.A., can get you quick access to social networks. For social media sites like Snapchat, Vine, and Instagram, L.A. is a great place to get immediate access to prominent investors. In L.A., startups like BuzzStarter have access to the entertainment companies; and because BuzzStarter specializes in...