From the Desk of Brian G. Murphy

Manager / Senior Mortgage Planner / Colorado Attorney

Brian on the radio- KHOW 850 AM

Brian on KHOW 850 Radio
In the Clear Channel Studios after finishing my spot on KHOW AM 630 Saturday morning. Great show with Barry & Larry on mortgage tip of the week - don't move money prior your closing!  | read this item

In the Clear Channel Studios after finishing my spot on KHOW AM 630 Saturday morning. Great show with Barry & Larry on mortgage tip of the week - don't move money prior your closing!

In the Clear Channel Studios after finishing my spot on KHOW AM 630 Saturday morning. Great show with Barry & Larry on mortgage tip of the week – don’t move money prior your closing!


Testimonial from a Colorado Springs Realtor

Testimonial from a Colorado Springs Realtor   | read this item

Thanks M! It was a pleasure to work with you and your great client!- Brian

“Thank you so much for all you have done to make this deal happen Brian! You did a fabulous Job! I cannot tell you how much I appreciate all of your hard work! You and your staff have been a privilege to work with. Everyone was very prompt in communication, courteous and extremely professional! Front Range Mortgage is “Tops” in my book! I will highly recommend you to my future clients and friends. Again, thank you for all of your hard work!”

Sincerely,

MD
Keller Williams
Colorado Springs, CO


Nice testimonial from Loveland, CO First time Home Buyer

Nice testimonial from Loveland, CO First time Home Buyer  | read this item

“As a new home buyer I am not 100% sure what to be looking for. It’s been a learning process that’s for sure! I did a lot of reading online and to me everything you have offered me has been great!

I am very happy with your services and I recommend you to co-worker who is from Colorado and is looking for a property.

Thanks again,

K-“


Past Tax Lien or Judgment stopping you from Home Ownership?

Past Tax Lien or Judgment stopping you from Home Ownership?  | read this item

We daily work to help prospects come back from credit issues (from 580 FICO, past Bankruptcy, less than 3 years from foreclose VA’s, etc.)- turning them into pre-approved buyers. But until very recently, even we have be stymied by past judgments or tax liens. These are required to be paid off before a lender will approve the new mortgage (with almost no exception). Today I am happy to announce that we have a program to fix this exact problem. We have both FHA & VA loans that allow the seller’s concession to be applied to pay a buyer’s judgment at closing! This will allow thousands more Coloradan renters to become homeowners this year. Call or write to see if this program could help you get in your next home- Brian.

 

 


Is your Colorado home now in a FEMA flood plain? New FEMA maps are changing…

Is your Colorado home now in a FEMA flood plain? New FEMA maps are changing...  | read this item

Is your Colorado home now in a FEMA flood plain?  New FEMA maps are changing…

Quick video summary and link to FEMA page to check your property.

https://vimeo.com/87600814

Cordially,

Brian G. Murphy
Manager / Senior Mortgage Planner
Front Range Mortgage, LLC
NMLS #378844 / CO MLO #MB100020928

Denver Office:                    1600 Jackson Street, # 350  Golden, CO 80401
(303) 524-9907 Office
(303) 524-9269 Fax

Colorado Springs Office:    102 S. Tejon Street, # 1100  Colorado Springs, CO 80903
(719) 540-2020 Office
(877) 524-9269 Fax

 


Top 6 Myths about VA Mortgages:

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Top 6 Myths about VA Mortgages:  | read this item

Myth 1: The VA loan benefit is only for First Time Home Buyers.

Answer: Nope. Our veteran and active duty buyers can make repeated, unlimited use of their VA loan benefits. First time, Move up home, Move down-it doesn’t matter. They may be capped to entitlement amount (see below) but can buy, sell and re-use this amount repeatedly (or even more with a VA Jumbo- see below).

 

Myth 2: VA loan limits are $417,000.

Answer: Not quite. VA limits the amount of liability they will assume under a VA loan, varying county by county across the country. As I write today (updated Jan 2015) Denver Metro and Boulder are now higher than the $417,000 limit:

Conforming and VA loan limits (1/2015):

$424,350 for Denver metro counties
$456,550 for Boulder
$417,000 for El Paso

 

Myth 3: VA loans are barred over the county eligibility limits ($417,000/$422,500/$425,000).

Answer: Wrongo. VA borrower may chose a VA Jumbo to buy their next home. $500,000, $750,000, $900,000 VA loans are available for Colorado home buyers. What’s different is that when the new loan is in excess of the VA limits ($425,000 in Denver for example) the buyer will be required to put down a down payment (approx. 25% of the amount in excess). Of example, a Denver Veteran can purchase a $525,000 house- with a 30-yr fixed VA mortgage, with no mortgage insurance, requiring an approx. $25,000 down payment (25% of the 100K over VA limit). No regular jumbo can touch this.

 

Myth 4: A borrower can only have one VA loan at a time.

Answer: False. You can have two VA loans out at the same time as long as you remain within the VA maximum entitlement. I have several clients who purchased a condo when out of the service, than purchase a house after getting married. Two houses even in the same city- both with VA loans. Not a problem. Even more, VA regs allow me to count rental income on the first to help qualify for the move up house (generally not available under FHA or present Conventional guidelines). Don’t think that your Veteran buyer must go conventional or FHA on their move up purchase- we can often have them qualify for a better rate, and no mortgage insurance, with a second VA mortgage (even in the same city).

 

Myth 5: VA loans are only for primary residences.

Truth: Half right. You can only use a VA mortgage to obtain a primary, owner-occupied residence. But (see above) you can move out of this first house and purchase another home (VA or otherwise) and legally retain the original VA loan on this investment property. This cannot be done to mislead the lender (you must intendto occupy and actually occupy the purchased home or you would be guilty of loan fraud). But after buying and legally occupying your residence under a VA you can keep this loan after you move up (without violating VA or HUD guidelines). Another great benefit of VA loans.

 

Myth 6: VA requires a 640 fico score.

Truth: Not at all. Believe it or not, VA has NO CREDIT SCORE requirement to qualify for a VA mortgage. NONE. It is rather the lenders (Boo! Hiss!) that put lender (overlay) requirements upon Veterans requiring minimum credit scores, not the VA. Most banks do require a 620-640 mid credit score, but I am happy to confirm that I have several programs that will work from a 580 mid credit score for VA purchases (as well as No Fico score VA refinances). Call or email for details on these programs (they have great advantages over typical bank VA programs).

 

We are proud to have worked with hundreds of Colorado Veterans and Active duty military over the last 15 years and provide this expertise to you and your clients. A sub-specialty is helping Veterans to come back from credit disruption (Foreclosures, Short sales, Bankruptcy, etc.) to provide no cost credit review and guidance to get back into their next home. Call or write as we can help you and yours.

Brian G. Murphy, JD BA
Manager / Attorney / Senior Mortgage Planner
Front Range Mortgage, LLC
NMLS #378844 / CO MLO #MB100020928

(303) 524-9907 Denver
(719) 540-2020 Colorado Springs
Brian@FrontRangeMortgage.com

Front Range Mortgage is a proud sponsor of Operation Homefront of Colorado- Helping Military Servicemen, Families & Wounded Warriors

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Top 10 Mistakes made by Colorado Home Buyers

Top 10 Mistakes made by Colorado Home Buyers  | read this item

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Over the last 15 years in practice as a Colorado consumer attorney and Colorado mortgage loan originator, I have witnessed abundant mistakes made by Colorado home buyers seeking to buy their first home.  Many of these errors are not immediately obvious to clients, and some appear counter-intuitive.  A list of ten such common errors are listed here to help you tread an easier, lower stress path to your next home.

1.  Not having your Credit reviewed 2-3 months before you want to buy.  We find errors on approx. 80% of our client’s credit reports.  Many are insignificant, but others will kill your deal.  ID theft, Name confusion, authorized user card or co-signed loan with a late payment- any of these hidden credit wreckers will only be found with a full tri-merged credit report.  Having your credit card balance just $10 over the credit limit could lower your FICO score by 40 points (and cost you a .25% to .50% higher interest rate)!   A parking ticket (City of Denver will report you) or lost library book can cause a new collection just before you find you dream house.

Please be certain to have a professional (FICO-based) credit report pulled before you begin     serious home hunting to allow ample time for a consumer attorney and loan officer (such     as my team) to work to correct reporting errors, provide instruction to pay down a credit     card balances, drop yourself from a poor authorized user account, etc.  We provide such credit reports and consultation at no cost to Colorado homebuyers.

2.  Paying off old collections (Don’t awaken credit dragons!)  My clients are constantly shocked to learn that paying off old collections can actually hurt their ability to qualify for a mortgage.  But alas, it is true.  The general rule is that older collections (3-4-5 yrs. old) have a small impact on FICO score, but that paying off an old collection can re-date this derogatory account to reflect this month’s activity – making an old collection appear to be much more recent, actually lowering your score.  Additionally, we routinely have buyers call us after they have paid off old debts with expired statutes of limitation which could not have been legally litigated by a collection agency.  If the client would have called me prior, they would have saved thousands in precious down payment funds as well as maintained a higher credit score for their new mortgage.  Call before you make any contact with any creditor while preparing to buy your next home.

3.  Disputing all negative accounts with a credit repair organizations:   A large, profitable and poorly-regulated industry has grown around credit disputes by credit repair organizations.  They can be of occasional use by home buyers, but the common conflict of interests between their goals (dispute all tainted items to be paid more) is often in direct discord with your goal of obtaining mortgage approval under Fannie Mae & Freddie Mac regulations.  Today, (with some exception) if you dispute all derogatory accounts- you can game the system to temporarily reflect a higher FICO score (as the disputed accounts may not count in the FICO score for that pull).  But the lender underwriters are not dumb to this- and will generally refuse to accept such manipulated credit reports- and will require you to prove the validly of each dispute or to drop such disputes and repull.  In such cases you may have fatally jeopardized your loan transaction as the disputes cannot be removed in time to re-pull your reports prior your contractual closing dates.  Speak with an experienced Colorado loan officer and/or consumer attorney before making any dispute on your credit reports if you goal is a timely closing on your dream home.

4.  Closing credit card accounts (pay them down but leave them open). Paying down to a 0 balance is great, but don’t close the card.  Closing the account will actually reduce your number of trade lines (part of the FICO scoring model) and directly reduces your utilization calculations (% of available credit vs. % of credit used) a critical factor in FICO scoring.  When it comes to credit cards: Pay them down, but DON’T close them (unless we speak further).

5.  Buying a Car (Harley, Furniture) before your next house.  Making a larger purchase before you buy your house handicaps you in several ways: (1) it generally lowers your FICO score by showing recent debt incurred, (2) it will increase your DTI (debt to income ratios) lowering the home price for which you will qualify, and (3) each often requires additional documentation to the underwriter to explain/document recent credit purchases.  As an all too common example, a $500 car payment is the equivalent to $100,000 of home price for a DTI ratio at a 4% rate.  Every month we have buyers call who cannot buy their target house because they have recently purchased a car!!!!  Wait to buy your next car (or Harley, etc.) until AFTER you close on your new home.

6.  Transferring money from one account to another! This seems totally innocuous- even tidy, but such a move can kill your new home purchase!  This is perhaps the most common mistake for my perfect, “A+ credit” buyers, who seek to consolidate money from one account to another before the closing.  Underwriters hate this seemingly trivial act as they fear that you are trying to “pull a fast one” by attempting to double count the funds available for down payment (it happens every day).  Lesson learned the hard way:  Don’t move any money from any account without speaking to your loan officer first.

7.  Make any irregular deposit to your bank account without keeping all documentation.  Today’s underwriters will require us to document every single deposit on your bank statements for 60-90 days before your closing.  Paycheck deposits are fine, but any other, irregular deposit (gifts from mama, cash from garage sale, PayPal refund, etc.) can be required to be documented by the underwriter for loan approval.  We hate this rule as much as our buyers (!!!) but such is the consequence of the Patriot Act and federal money laundering acts where we are charged as fed agents to report suspicious activity.  Make it easy on yourself and cash any small checks you receive 60-90 days before you buy (rather than deposit them in your accounts).

8.  Sneaking gift funds into your account (will get caught)!  It happens quite regularly, but it is caught 99% of the time (and the underwriter is very displeased)!  There is no need for this to happen as we have many programs that fully allow gift funds!  If we are told beforehand that you will receive a gift we will have the gift revealed to the lender and have no problems at all.  Not a problem.  But please DON’T try to slyly have $10,000 magically appear in your checking account the week before close- it will blow up the deal!

9.  Failing to communicate closely with your realtor and loan officer throughout the process.  The truth is that problems will come up in most ever real estate transaction.  That’s why we are here- we are experts in solving problems to keep your loan on track to closing.  Keep in communication with us (your loan officer) and your realtor to allow us to co-ordinate solutions to any problems that arise.  Believe me – we have seen them before and have tools to fix them: Inspection issues, appraisal too low, down payment short, collection shows up, seller won’t fix a punch list item, title shows potential of forgery, buyer had epileptic seizure night before closing (really happened), etc., etc.  Keep us in the loop and we will work through most every hurdle to get you in your next home.

10.  Finding your dream home, BEFORE you have been pre-approved for your mortgage.  This seems obvious to us in the business but happens less than half the time (in my experience).  There is nothing wrong with searching online as you dream of buying a home (hey- we can all dream)!  But once you make the determination to really buy a home, spending rare time, money and energy driving to homes, you should spend five (5) minutes in obtaining a quick (5 min phone pre-qual) to review credit, discuss income, debts and down payment to know what you can qualify for.  It is heartbreaking to fall in love with a home that you can’t afford.  Or to learn that you are $2,000 short of the down payment needed for that house.  If you need to get a gift from mom for part of the down payment- you want to know this early.  Please know that you do not (as the press falsely relays) need 760 fico and 20% down to buy a house.  We have programs with as little as $1,000 down payment ($0 down for VA purchases) and as low as 580 fico score.   But please call a local, Colorado loan officer to confirm how much you can afford before you find the wrong house.

I hope that list is helpful for Coloradans who are considering buying their first (or their next) house.  I and my team (www.FrontRangeMortgage.com) are here to assist you at any stage in your home buying preparations.   Just out of a bankruptcy- give us a call.  Have some old collections- happy to give review them with you.  Perfect credit and ready to buy- call or stop by.  We work with all types of home buyers on every type of Colorado home.  Call, write or stop by as we can provide our expert, compassionate experience.

Cordially,
Brian G. Murphy, JD BA
Manager / Senior Mortgage Planner
Front Range Mortgage, LLC
NMLS #378844 / CO MLO #MB100020928

(303) 524-9907  Denver
(719) 540-2020  Colorado Springs

Please Note: This information is not intended to constitute legal advice and should not be relied upon in lieu of consultation with appropriate legal advisors in your own jurisdiction.  It may not be current as the laws in the area of informed consent change frequently.  The posting and periodic updating of this Web site and its links are not intended to create, nor do they create, an attorney-client relationship between Brian G. Murphy and you or any other person.  You should not act or rely on any legal information on the web without obtaining the advice of an attorney.

The materials on this Web site and the related links are provided for informational purposes only.  They are not intended as and do not constitute legal advice and should not be acted on as such.  These materials are not represented as being all-inclusive, correct, complete or up-to-date.  No one should rely on any information on this Web site or its links.  We suggest, instead, that you should seek the advice of an attorney with respect to any matter contained in the Web site or its links.


Brian Murphy with James Malinchak, Star of ABC’s Secret Millionaire

Brian Murphy with James Malinchak, Star of ABC's Secret Millionaire  | read this item

I had the privilege of spending several hours in a small group business training with James Malinchak, star of ABC’s Secret Millionaire.  Great discussion of small business development, marketing, goal setting and personal development.  It is never easy, but it can be worth it.

Cordially,

Brian G. Murphy
Manager / Senior Mortgage Planner
Front Range Mortgage, LLC
NMLS #378844 / CO MLO #MB100020928

(303) 524-9907  Denver
(719) 540-2020  Colorado Springs
(877) 524-9269  Fax

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Nice testimonial this morning

Nice testimonial this morning   | read this item

“Thank you very much for all your help and all that you did to try to make this as painless as possible for me. I will be referring some friends to you soon.”

Cynthia G- Thornton,Colorado

Cash out refinance (paying off many bills).


Front Range Mortgage’s Brian Murphy back on the radio, Interview with Barry Miller, 760AM, Live broadcast this Saturday (9:00-10:00 am) on 760 AM

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Front Range Mortgage’s Brian Murphy back on the radio, Interview with Barry Miller, 760AM, Live broadcast this Saturday (9:00-10:00 am) on 760 AM  | read this item

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I am honored to be back on the radio again this weekend helping Colorado homeowners and would-be homeowners with mortgage, credit and general real estate questions. I have the privilege of being interviewed by Barry Miller, Denver real estate expert and consumer advocate and Radio host “Your Real Estate Answer Man,” his Saturday morning show on AM 760. Live this Saturday morning (Jan 4th, 2014) – we should be live between approx. 9:10-9:30 am.

Some topics of discussion: latest Case Shiller results for Denver Home prices (very strong), likely effects of new mortgage regulations (effective Jan 10th) and credit mistakes buyers make that can cause them to lose their dream home (before they even find it)!

Happy New Year!

Cordially,

Brian G. Murphy
Manager / Senior Mort. Planner
Front Range Mortgage, LLC

(303) 524-9907 Denver
(719) 540-2020 C. Springs
(303) 524-9269 Fax



Colorado Mortgage Broker - Brian Murphy - Front Range Mortgage DBA: United Mortgage Funding, LLC - Colorado Mortgage License MB100020928 To check the license status of your mortgage broker visit http://www.dora.state.co.us/real-estate/index.htm (DORA) Web Site Privacy Notice - Web Site Conditions of Use