Deanna Parrish Mortgage Broker

09/09/2022

04/07/2022

We can help families with a credit score as low as 580! You don't need perfect credit to buy a home. However, the higher credit score helps with overall costs of a mortgage. Message us or give us a call 707-468-8500

08/12/2019

Top 10 Home Mortgage Roadblocks to Avoid!

Do you want a successful, timely closing? Mortgage mistakes can be costly! We get asked questions all the time and most first time home buyers don't realize that EVERY SINGLE THING they do during the home buying process can affect the mortgage process. Here's a few friendly reminders from Mendo Home Loans 707-468-8500.

Once you apply for a Mortgage, there are 10 things that you should be careful not to do during the mortgage process (or risk your loan not closing on time or at all!) When possible, try to avoid these mortgage mistakes:

* Don’t Buy a Big-Ticket Item – Save those purchases for after you close (Cars, boats, furniture, etc.)

* Don’t Quit or Change Jobs – Changing jobs can reflect instability in a lender’s eyes. Some are okay with it if you provide a letter of explanation, and work at the new job for a certain amount of time. Try to wait, if you can’t, talk with your Mortgage Broker first, to see what the lender will require.

* Don’t Pay your Bills Late – Late payments lower your credit score, and lenders not only monitor your credit during the mortgage process, but they may also re-pull your credit before closing.

* Don’t Open or Close any lines of credit – Both may have a negative impact on your credit score.

* Don’t ignore questions from your Lender or Mortgage Broker – that can delay your loan closing. SO IMPORTANT!

* Don’t let anyone else pull your credit – After you’ve found the Mortgage Broker you want to work with, hold off on any additional credit pulls until after you close. Again, credit inquiries lower your credit score.

* Don’t make large deposits other than your paycheck (especially cash!) – If you have to, expect to explain (and source) the deposit with a letter. If the deposits were a gift, you’ll also need a gift letter and source of funds from the donor.

* Don’t co-sign another loan with anyone – If you do, you are legally responsible for that debt, and it will increase your debt-to-income ratio.

* Don’t change bank accounts – If you are compelled to change, you’ll have to provide statements for both accounts, and source all funds.

* Don’t take out any payday advance loans – This reflects a lack of money management – not what you want to convey when applying for a mortgage.

We at Mendo Home Loans are here to help and answer any questions you have regarding the home loan process, guide you through it and partner with you to have the most stress-free transaction as possible! 707-468-8500

07/30/2019

RATES ARE GREAT! Get Your Free Mortgage Analysis! Share your goals (lower your payment, get a fixed rate, cash out for home improvement, debt consolidation, shorten the length of your home loan, etc) and give us a current mortgage statement and we'll give you different scenarios to look over! Contact us today 707-468-8500 108 N School Street (directly behind the courthouse under the green awning)

06/20/2019

We had the opportunity to participate in the North Bay Association of Realtors Golf Tournament last week and had so much fun! Everyone loves their job!

05/29/2019

ATTENTION VETERANS!
No Money Down Purchases * No Mortgage Insurance * Cash Out Re-Fi's, we do it all! CONTACT US today to discuss your loan options.
Mendo Home Loans 108 N. School Street (right behind the courthouse under the green awning that says Home Loans) 707-468-8500

05/27/2019

This applies to anyone you use for any professional or retail service. Do you see them volunteering at local events? Are they cheering in the stands next to you at youth sports? Do they live in another county and just solicit business in your town? Think big picture...we all want a good deal but often it doesn't cost any more to use your local small businesspeople and your dollar goes farther to support our community in more ways than you can imagine.

05/27/2019

5 COMMON MISTAKES FOR FIRST TIME HOMEBUYERS

Buying a home for the first time can be a wonderful—and intimidating—experience. With so much information out there, it’s easy to feel overwhelmed. There are ways to streamline the process, both from an emotional and financial perspective. It’s also important as a first-time homebuyer to understand all the mistakes commonly made during the process and learn ways to avoid making them.

First-time homebuyers can make a few mistakes during the home-buying process. It’s no wonder. It’s their first home-buying experience. And it can be unclear of what needs done when.

1. Not Getting a Pre-Approval
Not starting the process early and not getting pre-approved can throw a wrench in the home buying process, said Deanna Parrish, Mortgage Advisor with Mendo Home Loans (a division of Pinnacle Capital Mortgage in Ukiah, California. It’s useful for homebuyers to know how much home they can reasonably afford. With that knowledge they can adjust their expectations and budget accordingly.

Another reason to get pre-approved is because pre-approval gives prospective home buyers an opportunity to check their credit—one of the key factors that determine the terms and conditions of your loan. If you’re unsure of your credit standing, now’s the time to find out. You can get your Experian credit score—free—on Credit.com.

“Once you submitted your tax returns, pay stubs and bank statements and a few additional documents," Parrish said, “the loan officer will analyze your financial situation, compile the loan application package and underwrite the file. He’ll then generate an approval based on the findings of the automated underwriting system that we all use,” Parrish explained. “At that point, homebuyers are confidently able to get a pre-approval letter and shop and make an offer on a property, knowing that their financing is already in place.”

2. Putting Off Credit Issues
“The other thing that I see first-time borrowers fail to do is not deal with credit issues that may keep them from getting the loan,” Parrish said. Those issues can include paying off debt, raising their credit score or waiting to open more credit cards.

Your credit score is one of the key factors that affect the terms and conditions of your mortgage, so it’s critical to know where your score stands. “Someone with a 620 score might pay half a percent higher more than an otherwise identical borrower with a 740 score,” Parrish said, referring to the fixed or adjustable interest rate tied to a mortgage. “Credit issues may be easy to fix, which could save the borrowers literally thousands on their loan,” she said. “I consider that a must-do".

4. Know the Down Payment Facts
It’s not uncommon for first-time homebuyers to assume they need more money for a down payment than they actually do, Parrish said. “I often hear people asking, ‘Can I get away with less than the normal 20% down payment?’ The answer is yes. Sometimes homebuyers can put as little as 3.5% down. Also as the market continues to appreciate and rates follow suit, your down payment money could depreciate with it,” he warned. In other words, “waiting costs money.”

4. Not Having a Good Real Estate Agent
Finding a knowledgeable real estate agent who has your interests at heart is imperative for first-time homebuyers. After all, that person is responsible for steering you toward your dream home. And you likely have lots of questions.

“There’s a matter of skill and experience that go into the mix,” Parrish said, so it’s important to “spend some time with them [real estate agent]. Interview them like you would a potential employee.” Your real estate agent should understand what you can qualify for based on assets and income but also be able to pinpoint what you’re seeking in terms of neighborhoods, lifestyle, school districts. Finding someone with “current market knowledge", as Parrish put it, is key and as important as finding your forever home. Your aunt's friend or someone you knew from high school may not be the best match for you. Your agent is your partner in this transaction - so make sure you choose a professional that will be calm in challenging times (it's the biggest purchase of your life, who needs more drama and stress, right?), knowledgeable regarding local issues and familiar with market conditions. Do your homework and success with be a sure thing!

05/26/2019

The Best Mortgage Option for Self Employed Buyers

The best mortgage option for self employed buyers today are bank statement loans. This program was introduced specifically to help those who have the challenges of qualifying based upon the net income on their tax returns.

Rather than using tax returns, lenders will require you to provide 12 months of bank statement deposits as proof of income. They will use a percentage of the average monthly deposits of your business accounts, and 100% of the deposits into your personal accounts to use as your monthly income.

Bank Statement Loan Requirements

The Best Mortgage Option for Self-Employed

~ You must be self employed for a minimum of 2 years.
~ Credit scores can be 580+ depending upon the lender, but that may change your down payment requirement.
~ You will need to provide 12-24 months of bank statements (all pages).
~ The down payment requirement will be based on your credit score, and whether you had a recent bankruptcy.
~ Available for primary residences, second homes and investments.

Pros and Cons of a Bank Statement Loan

Pros of Bank Statement Loans
~ Low down payment requirement
~ No tax returns are needed for qualification
~ Low credit scores are permitted
~ Recent bankruptcies are permitted
~ You can qualify even if your business is showing a loss
~ No PMI for LTVs over 80%

Cons of Bank Statement Loans
~ Interest rates are a little higher than conventional loans
~ You will need to show a steady flow of bank deposits

The bank statement loan is by far the best mortgage program available for self employed buyers due to the combination of limited mortgage documentation needed and competitive rates.

Bank deposits – If you are self employed and thinking about buying a home, you will likely need to qualify using your bank statement deposits as a source of income on your loan application. Therefore, you will need to make sure that you are depositing everything into those accounts. If you are in a cash business, start depositing that into your accounts. No more mattress stuffing. If you are unable to show sufficient deposits, then you will not qualify for your mortgage.

CONSULT US! Mendo Home Loans The loan officer will identify areas of improvement and whether you are able to qualify. It is a good idea to speak with a loan officer at least 1-3 months in advance of meeting with a Realtor to see and purchase your first home. He or she will provide recommendations and suggestions for you to work on over the next few months. This will help you to have more buying power and to get the best rate possible.

Mendo Home Loans - a division of Pinnacle Capital Mortgage 108 N. School Street (directly behind the courthouse under the green awning that says Home Loans). 707-468-8500

05/25/2019

Stats don't lie! Come sit down and discuss your home loan goals and options with our mortgage advisor Deanna Titus- Parrish. The odds are in your favor!

Mendo Home Loans a division of Pinnacle Capital Mortgage 108 N. School Street (directly behind the courthouse under the green awning that says Home Loans) 707-468-8500

05/25/2019

* CONFUSING MORTGAGE TERMS EXPLAINED - #3 **
For many it can seem like a foreign language, and creates many questions about mortgage terms. Never fear, over the next few days we at Mendo Home Loans will help you understand some of the mortgage terms that you might encounter and what role they play in the mortgage process.

Escrow and Impound Accounts
Part of your monthly mortgage payment goes to paying real estate taxes and insurance. This money is typically placed into an escrow account and then distributed on a set schedule. Zillow defines escrow as “when an impartial third party holds on to something of value during a transaction.” Throughout the mortgage process, different transactions at different times are held by a third party. For example, your earnest money, which is a deposit that tells the seller that you intend to buy the home, doesn’t go to the seller, but is held by a third party until you close on the house. If you don’t, it goes back to you.

Escrow also comes into play with your lender, who pay your PITI expenses from your monthly mortgage payment. The lenders holds those funds in escrow (also called an impound account) and makes the payments for you.

Escrow can happen as closing as well. An escrow officer will give out all the needed funds to the different parties to ensure your mortgage closes and you get the key to your new home.

Amortization
This term refers to the process of spreading out a loan into equal monthly payments for a term, such as 15 or 30 years for a mortgage. The payment includes both the interest and principal as well as other costs potentially. The actual interest and principal paid each month changes as more money goes to the principal over time. However, your monthly payment stays the same.

For example, for a sample loan with a starting balance of $20,000 at 4% interest, the monthly payment is $368.33. The principal accounts for $301.66 of that, the interest accounts for $66.67 and the balance after your first payment totals $19,698.34. For your thirteenth payment, $313.95 goes to the principal and $54.38 goes to interest.

The shifts or amortization happen behind the scenes—although you should be given an amortization schedule by your lender, so you can see the shifts. Your very last payment will likely be less than your monthly payments and will pay off the remaining balance of the loan.

If you fail to make payments on this type of loan, you see an increase in the principal balance of the loan, which is known negative amortization. The loan payment shouldn’t be less than the interest charged for that particular period. To avoid fees and higher interest, you want to avoid negative amortization.

Balloon Mortgage
Balloon mortgages don’t fully amortize over the term of the loan. Instead, they have a balance the date the loan matures—the date of the final payment. That balance is large and is for the principal only. Interest will have been paid out of the monthly payments. The final payment of the loan is a balloon payment. Having this type of mortgage loan is more common in commercial real estate than in residential real estate.

Debt-to-Income Ratio (DTR)
Debt-to-income ratio (DTR) is used by lenders to assess risk. Your ratio is your total debt divided by your income. If you have a higher debt-to-income ratio, it’s harder to get approved for a loan, because a mortgage lender will see you as a risk. In most cases, a 43% debt-to-income ratio is the highest a mortgage lender will consider before approving a mortgage application. However, the ideal percentage for your DTR should fall under 28% on the front-end, which is how much of your gross income goes to housing costs, and no more than 36% on the back end, which includes all of your monthly expense. The generally term, DTR, usually encompasses the back end where front-end DTR is considered a variation of the standard DTR.

You can calculate your debt-to-income ratio with the Credit.com Debt-to-Income (DTI) Calculator.

Truth in Lending Act (TILA)
To protect consumers from inaccurate and unfair credit billing and practices, the Truth in Lending Act (TILA) was created. The federal law passed in 1968 to ensure that lenders treat consumers fairly in the lending marketplace. It includes the requirement of disclosures regarding terms and costs and an explanation to how these costs associate with the borrowing process and how they get calculated.

Knowing these terms can make the mortgage process much easier and more transparent for the borrower. Securing a mortgage loan is one of the biggest transactions a person can make in their lifetime which makes it all the more important to understand the process from beginning to end to give you the confidence you need when signing the papers for your new home.

If you have more questions, feel free to give us a call! Mendo Home Loans 707-468-8500 or make an appointment 108 N. School Street directly behind the courthouse under the green awning. Mendo Home Loans (a division of Pinnacle Capital Mortgage)