Maryland Top Lender

The FHLB Grant is Back!

2012-01-21T11:55:00.001-05:00

Carrollton Mortgage Services is proud to be one of very few lenders in the State to offer this 1st Time Buyer Grant; Buyers may be eligible for $5000 towards their closing costs and down payment on a home! FHLB is a forgivable grant (20% each year up to 5 years total) and is issued at settlement toward the down payment. The $5000 grant is per household, and is allowed to go towards a buyer’s FHA 3.5% minimum requirement for down payment.

Borrowers must meet just a few requirements to qualify for the wonderful grant and it is on a first-come, first-serve basis.

Carrollton helped over 135 1st time buyers just last year alone achieve the dream of homeownership with the FHLB Grant. We also have several other down payment and closing cost assistance programs to offer that can be used in conjunction with FHLB or independently as well.

If you or anyone you know might be able to benefit from these funds, please don’t hesitate to call on us to help! Email at sepstein@carrolltonbank.com or call 410.491.0200.

One of Stuart Epstein's Fans Tells Her Success Story

2012-01-18T11:59:00.001-05:00

Ordinarily, waiting at the MVA would be a frustrating affair. Today however, is different. I am content! I realize they are calling for G62; my ticket says G105, but I'm beaming. This is the day I change my license to my new permanent address, my first house.

Six months ago I would have told you that I was not ready for the commitment of buying a home. Or that I couldn't afford a mortgage, student loans, and a healthy social life. However, last September I attended a course presented by LiveBaltimore where I learned about the various incentives available to home-buyers in Baltimore City.

In October I approached Stuart Epstein and the Carrollton Bank team (Bob Foster and Jennifer Grosholz) with a challenge. Through my research and Stuart's assistance I hoped to earn $47,000 worth of grants, incentives, and principal diminishing loans to assist in the purchase of a new home. I also needed to close before December 1.

Stuart was excited by the challenge and the complexity of the paperwork involved; nor did it deter Bob or Jennifer who were extremely well organized, focused and served as an excellent resource.

Stuart and his team accomplished a miraculous feat by processing grants and loans from several different entities. They placed a rush on the inspection and kept me focused as the December 1 deadline rapidly approached.

It is with significant evidence of their hard work that I recommend Stuart Epstein and his team to you. Stuart is incredibly informed and up to date on all of the programs and incentives offered by the City of Baltimore, and even more so after working with me. They are responsive, professional, and personalize each service to the client. I would not hesitate in working with them again and highly recommend their service.

I realize, still waiting for my number to be called at the MVA, that this would never have been my city, my home, without their support and hard work.

Thank you Stuart, Bob, and Jennifer!

- Charlotte Jones RN, BSN

Shopping for a Mortgage in Maryland? Get A Good Faith Estimate - And More Importantly, Understand What It Means!

2011-12-20T12:39:00.000-05:00

I hope you find this post to be a helpful tool that can save you thousands of dollars in up-front fees and interest over the life of your loan by making you an expert at mortgage shopping.

The federal government has taken positive steps over the last few years to regulate the disclosure requirements for mortgages from lender to consumer. One of these is the implementation of the Good Faith Estimate (GFE), which is mandated for lenders to provide you once you have made a formal application. The down side is that this 3-page standardized form can actually make the numbers more confusing (in my humble opinion). Because lenders know this, most will give you some type of Fees Worksheet in addition to the GFE so you can see the entire transaction in a more basic format.

The GFE (or Fees Worksheet) provides you with a comprehensive picture of the entire transaction (if done properly by your lender). On the typical Fees Worksheet, you will see everything from the purchase price to the interest rate, all the closing costs, down payment, the mortgage payment, and the cash needed for closing.

The worksheet is usually broken down into these sections:

1. The lender section – this includes the fees that the lender charges to originate your loan. These typically include application fees, processing, underwriting, wire fees, origination fees and points. Ask your lender to show you which fees on the estimate are “their fees” so you can compare with other lenders.

2. The third party fees directly related to the financing - these will include the appraisal, credit report, flood certification, and any mortgage insurance premium applicable to your loan. These should be easy to compare. The lender does not mark up these fees; they are what we call “pass-through” expenses, but they can be different between lenders, depending on who they use.

3. Title Company’s fees - these will include the attorney fee, abstract, lenders and owner’s title insurance, and other fees that the title company incurs to process the transaction. You get to pick your title company for settlement, so you have control over these fees, but a good lender will use conservative estimates in this section to make sure you are seeing realistic numbers.

4. Miscellaneous costs that you will likely incur, but are up to you to decide who you will use, and how much you will pay. These items include things like the home inspection, termite report, and realtor admin fee. Again, a good lender will show these items on the estimate so you can see everything you will incur, even though they may not be required.

5. Lastly, ‘prepaids’ and reserves - these are the property taxes, homeowner’s insurance and prorated interest. Because taxes and insurance are paid in advance, there is a certain amount that has to be collected at settlement to reimburse the seller for taxes prepaid, as well as a cushion in your escrow account to pay the next bill when it comes due. Make sure your lender goes over this section in detail with you so you understand how this works. This is probably one of the most confusing components of the estimate. If your lender is good, they will explain it in a way that makes complete sense.

The end result of understanding your estimate is that you will know exactly what to expect from a ‘cash out-of- pocket’ standpoint as well as what your mortgage payment will be. It will also give you the tools you need to compare lenders and see what you are really paying. You will find that there is much more to it that just simply an interest rate.

Fortunately, the Stuart Epstein team knows how important it is to educate our customers and we take time to go over the estimate and make sure you are well informed and comfortable with all the numbers. Our job is to take away stress from the process, rather than add to it.

We have mortgage solutions for everyone, from 1^st time homebuyers to seasoned investors. We lend in Maryland, Virginia, West Virginia, Pennsylvania, and Delaware.

Let us become your mortgage consultants for life!

FHA 203(k) LOANS – BUY AND RENOVATE YOUR HOME ALL IN ONE EASY LOAN – WITH A GREAT RATE!

2011-12-12T14:09:00.001-05:00

Suppose you find a house you absolutely love, but it needs an updated kitchen or bathroom, or just simply needs new carpet and paint…well no worries!

The 203(k) loan allows you to acquire the “fixer-upper” and make it your own. The 203(k) program is perfect for buying dated properties, foreclosures, or short sales that have been neglected or need some TLC.

There are two types of 203(k) loans – the regular 203(k) and the Streamline 203(k). The main difference between the two is dependent on the scope of the repairs/renovations and consultant requirements. If your scope of work exceeds $35,000 or includes items like mold remediation or major structural changes to the property, it requires a full 203(k). You will have licensed 203(k) consultant help you by providing a feasibility study, assist you in developing your scope of work for the property, and they will provide you with a budget and bid package so you can select a contractor and know what to expect from a cost standpoint. This is especially helpful for those who are not as experienced in doing home renovation projects. If your list of repairs/renovations is less than $35,000 and does not require a consultant, then the Streamline 203(k) simply requires you obtain estimates from licensed contractors and you are on your way!

If you have any questions about this wonderful program, please let me know. I have been processing 203(k) loans since 2003 and would love nothing more than to share my knowledge and experience with you, walk you through each step of the process and help you achieve your goal of buying and renovating a home to make it into the home of your dreams!

Don’t forget, we lend in Maryland, Pennsylvania, Virginia, West Virginia, and Delaware. All in-house local processing, underwriting, closing and funding. Your loan stays in our office from start to finish. Compare our rates with anyone out and see how competitive we are. Happy house hunting!

Refinance to a lower interest rate with no appraisal needed and no closing costs!

2011-12-09T10:23:00.000-05:00

Do you have an FHA loan? Did you know that you can refinance to a lower interest rate with no appraisal needed and no closing costs?

Yes, it is true – Here are the highlights of the FHA Streamline Refinance Program:

No appraisal required
No income or asset documentation required
We will pay all the closing costs – no out of pocket cost to you and nothing added to your loan amount
Result of the refinance must be at least 5% reduction in monthly payment to be eligible

One of the reasons that this program is so popular is that is much easier to process, so you don’t have to go through the same headaches as a normal loan, and you don’t have to worry if the value of your home has decreased to be able to take advantage. We can process your streamline in less than 30 days!

If you have an FHA loan and have not looked into the FHA Streamline Refinance Program, call me right away before rates increase again and you miss out. In ten minutes, I can tell you if you qualify and send you a detailed estimate, showing what your monthly savings will be. 410.491.0200.

More Exciting News for 1st Time Buyers in Maryland!

2011-08-24T09:37:00.001-04:00

More Exciting News for 1^st Time Buyers in Maryland!

CDA (The Maryland Mortgage Program) is offering the 30 year fixed rate loan at 3.5% and no points!!

Can you believe it? Well, there’s more. You can also purchase and renovate a home with a 203k Loan and CDA and get a 30 year fixed rate at 3% and no points.

I know it seems too good to be true. CDA has lowered their rates to help to revitalize the market and incentivize 1^st time homebuyers.

In addition to the awesome rates, you can qualify for the DSELP - $5000 toward closing costs and down payment, and several other grants that come along with the CDA loan.

These rates won’t last forever. If you want to know if you are eligible for this incredible program, please contact us right away! Contact me directly at sepstein@carrolltonbank.com or (410) 491-0200.

VA Loans - No Down Payment – No Monthly Mortgage Insurance

2011-07-19T10:25:00.001-04:00

VA Loans in Maryland, Pennsylvania, and Virginia – No Down Payment – No Monthly Mortgage Insurance

Who is eligible for getting a VA loan?

The VA loan is available to veterans, active duty service members, and reservists. Your VA eligibility can be verified through VA directly or you can contact a VA Lender who can verify your eligibility for you.

Why use VA?

VA is one of the only mortgage products left that allows NO DOWN PAYMENT – that’s right 100% financing
There is no required Mortgage Insurance
The credit qualifications are easier than FHA and Conventional
Interest rates are GREAT

I am a VA Approved lender and work for a Baltimore based local community bank that has been around for over 100 years! We process, underwrite, close, and fund VA loans in-house. We know the local real estate market. We are VA experts.

If you are moving to the Maryland, Virginia, or Pennsylvania area and are part of the BRAC realignment, we have additional incentives for you as well. How about free money to pay for your closing costs? Ask us about the BRAC Homeownership Incentive.

Contact the Stuart Epstein team for more details….

Why Should I Refinance from a 30-yr Fixed to a 15-yr Fixed Rate Loan?

2011-07-13T11:15:00.000-04:00

Mortgage Rates in Maryland - Why should you Refinance from a 30-year fixed to a 15 year fixed rate loan now?

I will tell you why. Suppose you took out a $250,000 mortgage on your home two years ago. You have made your payments on time (like a good boy or girl) and after two long years, guess what your principal balance is…….$243,000 – ouch! You have barely made a dent.

Now suppose you could get in your time machine, go back 2 years and do a 15-year mortgage instead. After two years your balance on the mortgage would be $224,000. That’s a difference of almost $20,000!!

Even you do not have a time machine…well… sorry... there is still hope. What about refinancing that evil 30 year mortgage now while the rates are great and get into a 15 year mortgage…and watch your debt melt away!!

Here is the math: Using the scenario above, if you are two years into your 30 year loan at a rate of 5.5%, and you refinance your loan into a 15 year mortgage at 3.75%, you will save over a hundred grand. Would you like to save a hundred grand? I think so!

If you keep the existing 30 year loan, after 15 years of regular payments, you will be left with a balance of $177,000 you still owe. If you refinance to a 15 year loan, you will be left with a balance of $0 after 15 years (obviously). The difference in the payment for the 15 year mortgage is about $400/month (times 180 payments = $72,000). $177,000 minus $72,000 equals $105,000 in your pocket!!

My suggestion – bite the bullet if you can and consider refinancing to a 15 year loan while rates are at historic lows….but only if you are interested in savings lots of money!

Feel free to contact us at any time if you are interested in refinancing your loan. You can also visit my website for more information at www.stuartepstein.com/.

Attention First-Time Homebuyers:

2011-07-07T07:30:00.003-04:00

We have some really exciting news from the Maryland Mortgage Program (some know this program as the CDA loan or MMP). The MMP has added the FHA 203(k) Streamline Renovation loan program to its offerings!!
You can now take advantage of the awesome benefits of the Maryland CDA loan and closing cost assistance - and add up to an additional $35,000 to renovate your new home at the same time. This is a big deal!! And here is the best part – the CDA program is offering this loan at a 30-years fixed rate of 3.875% and zero points – for a limited time.

We have been waiting for years for this program to be released. This loan is especially helpful if you are interested in buying a foreclosure or any “neglected” property that needs some TLC, or perhaps a new kitchen or bathroom(s). The Maryland Mortgage Program also comes with DSELP, a $5000 zero percent interest loan from the State to help with your down payment and closing costs. There are several other grants that come along with this wonderful program as well.

Traditionally, when using the Maryland Mortgage Program, you had to have a home inspection and the program required that all the items on the home inspection be repaired before settlement. This was very prohibitive for buying homes where the seller was not able or willing to make those repairs. That issue no longer exists with this new program. You, as the buyer, select you licensed contractor and make your list of repairs and wish list of renovations/upgrades, and we add that to your loan, up to $35,000. You can make the house into your dream home before you move in!

The eligibility for this MMP 203(k) loan is the same as the regular CDA mortgage.

As always, I am happy to walk you through this great program, and answer any questions you may have. Feel free to check out all the details on my website http://www.stuartepstein.com/, or go to the website for the program - http://www.mmprogram.com/.

How do I shop for a mortgage?

2011-07-01T09:00:00.000-04:00

How do I shop for a mortgage?

Are you wondering why you see such a wide range of rates being advertised on the internet and newspaper when you are shopping for a mortgage? Well, the answer is simple - mortgage companies want to generate “leads”. Once they have you on the phone, they have accomplished half of the goal. It is easy for a lender to explain away the “teaser” rate that you saw advertised by simply telling you “Well, that was last week’s rate”, or “That rate you saw is for an adjustable mortgage and only for 25% or more down, let me go over with you what you’re rate is….”. You see, lenders want to generate phone calls. If you are getting rates quoted to you from one lender that are a lot lower than everyone else – it is probably too good to be true. Remember, all lenders are working from the same bond market.

Here are some simple tips that can help you when you are shopping for a mortgage:

1. First of all, ask your Realtor who they recommend. Even if you don’t use the lender your real estate agent recommends, you can be assured that they are going to at least give you an honest assessment. After all, they don’t want to upset the person who referred you to them and make them look bad J

2. Find a local direct lender or bank who knows the local market, and ask them for a written estimate. Have them review the estimate in detail with you so you understand the components and closing costs, specifically which of the costs are related to the lender, and which are third parties that you have control over.

3. Compare fees between lenders before you are under contract on a house, but compare interest rates only after you are under contract. Until you have a ratified contract on a house, it doesn’t matter what a lender tells you their current rate is – because you can’t lock in until you have a house to lock in with. Some lenders will give out “teaser” rates that are not realistic, knowing they do not have to commit to it if you do not have a house under contract yet. When you are ready to lock in – that’s when you can legitimately compare Lender A, B, and C.

4. You can get general information on the mortgage market by visiting bankrate.com and other trustworthy websites, but keep in mind that there are many factors that determine rates. For example, if you are doing an FHA loan, the rate will typically be lower than if you are doing a Conventional loan. Also, if you have an 800 credit score, your rate may be slightly better than if you have a 710 credit rating. The amount of money you are putting down can also impact the rate. Have your lender explain what drives the rate they are giving you so you understand the “Why” of it.

5. Lastly – trust your instinct. I can’t tell you how many times I have had clients tell me “I just didn’t feel good about that other person I was working with” before they came to me. If you don’t feel confident in the person you are dealing with – MOVE ON! There are plenty of honest and competent mortgage professionals that want your business.

Of course you can contact the Stuart Epstein team anytime and we can give you all the guidance you need. Feel free to visit my website: www.mdtoplender.com. We have lots of resources to educate you on the process of buying or refinancing a home in Maryland!

What is the Loan Process?

2011-05-19T07:23:00.000-04:00

Save time and avoid delays by having this information available when you meet with your lender.

Copy of Purchase Sales contract or Offer to Purchase and all addenda (signed by buyer and seller)
Past 2 years' tax returns and W-2s
Past 2 years' employment history
Last 3 consecutive paycheck stubs (5 if paid weekly)
Name, address and phone for past 2 years' residence(s) and landlord(s). Renters should bring evidence of 12 months' rent payments.
Last 3 months' statements for savings, checking, CD, money market accounts, etc.
Recent statement on retirement accounts (IRA, 401K, 403-B, Annuity, etc.)
Monthly payments and balances on all open accounts
Divorce decree (if applicable)
Bankruptcy schedules/Discharge papers (if applicable)
If you are NOT a US citizen, provide a copy of your green card (front & back). If you are NOT a permanent resident provide a copy of your H-1 or L-1 visa.

Find out how much you are qualified to borrow.

When buying a home, you may be pre-qualified or pre-approved. You can be pre-qualified over the phone or on the Internet in a few minutes. Pre-qualification is not as useful as pre-approval. Pre-approval requires a more rigorous process, including verification of your credit, income, assets and liabilities. It is highly recommended that you be pre-approved before you start looking for a home.

Being pre-approved will:

Inform you of your maximum affordable home value, and save you from previewing properties outside your price range.
Put you in a stronger negotiating position with the seller, because the seller will know your loan is pre-approved
Help you close quickly, since your loan is pre-approved.

What loan program is best for your situation?

Think about how long you plan to keep the loan. If you plan to sell your home in a few years, you may want to consider an adjustable-rate or balloon loan. If you plan to keep your home for a longer time, you may want to consider a fixed-rate loan.
Understand the relationship between rates and points. Points are considered prepaid interest and may be tax deductible. Each point is equal to 1 percent of the loan. For example 1 point on a $150,000 loan is $1,500. The more points you pay, the lower your rate.
Compare different loan programs. With so many programs to choose from, it's hard to figure out which program is best for you. Consult an experienced loan originator who can help you find a loan program that best fits your short- and long-term plans.

All the research and preparation you've done to this point makes this step an easy one.

You can apply online or in person. Complete and sign the residential loan application, Form 1003 and the attached loan info sheet, credit authorization and fair lending notice. Your loan originator may also request additional documents, such as a loan information sheet, credit authorization and fair lending notice.

Once your loan application has been received, the loan approval process starts immediately. This involves verifying your:

Credit history
Employment history
Assets including your bank accounts, stocks, mutual fund and retirement accounts
Property value

Based on your specific situation, additional documents or verifications may be required.

To improve your chances of getting a loan approval:

Fill out the loan application completely.
Respond promptly to any requests for additional documents. This is especially critical if your rate is locked or if you plan to close by a certain date.
Anything that causes your debts to increase might have an adverse affect on your current application.
Do not move money into your bank accounts unless it can be traced. If you are receiving money from friends, family or other relatives, please contact us.
Do not go out of town around the closing date. If you do plan to be out of town when your loan is expected to close, you may sign a power of attorney, to authorize another individual to sign on your behalf.
Notify your loan officer before applying for any other credit, including credit cards, personal loans or even with another mortgage company. Some loan programs have strict guidelines regarding your credit score. Credit inquiries may lower your credit score and may have an adverse affect on your loan approval.

After your loan is approved, you will be required to sign the final loan documents. This will normally take place in the presence of a notary public. Be prepared to:

Bring a cashiers check for your down payment and closing costs if required. Personal checks are normally NOT accepted.
Review the final loan documents. Make sure that the interest rate and loan terms are what you were promised. Also, verify the accuracy of the name and address on the loan documents.
Sign the loan documents. The notary will require that you have your picture ID with you. Some lenders also require seeing your Social Security card.

Your loan will normally close shortly after you have signed the loan documents. On refinance and home equity loan transactions, federal law requires that you have three days to review the documents before your loan transaction can close. Purchase transactions do not have a three-day rescission period.

(Originally found on my website.)