PMI vs. MIP – What’s the Difference?

It’s no secret that purchasing a home, especially for the very first time, can feel overwhelming and intimidating. With all of the mortgage and real estate lingo, processes, and procedures involved, it’s no wonder buyers often find themselves confused and asking questions. Some of which regard mortgage insurance.

What is Mortgage Insurance

Mortgage insurance is a payment required of home buyers who have limited down payments of less than 20 percent for home loans. Mortgage insurance is designed to offset the borrower default risk for lenders and guarantee agencies that loan large amounts of money to borrowers with very little “skin in the game”. There are two types of mortgage insurance – PMI & MIP.

PMI & MIP

Although the concept of insurance protection is similar, there are distinct differences between private mortgage insurance (PMI) and FHA mortgage insurance premiums (MIP) that should be considered when deciding which loan program suits your financial needs.

PMI is private mortgage insurance that typically is available in a variety of premium plan structures and offers payment options that can usually be tailored to the borrower’s needs. There are a number of private mortgage insurance providers and each structure their offerings a bit differently.

MIP is the government-administered mortgage insurance program for the FHA. Since FHA loans offer reduced down payment options, MIP is required to offset the risk of a borrower defaulting.

Major Differences Between MIP & PMI

Major differences between these insurance programs include:

  • No upfront mortgage premium required with PMI while an upfront MIP is required.
  • PMI can be canceled after a stated LTV (loan-to-value) is achieved and favorable payment history has been established, while MIP is paid for the life of the loan regardless of LTV. In order to remove MIP, a borrower must refinance their FHA mortgage loan and meet minimum down payment and credit requirements.

Contact an Inlanta Mortgage loan professional to discuss your options and ensure that you select the program that is right for you! Click here to find a licensed mortgage loan professional near you or apply online today.

Tips for Choosing the Right Realtor and Lender

Tips for Choosing the Right Realtor and Lender

For most, choosing to purchase a home is a big decision. Choosing the right real estate agent and mortgage lender to help you smoothly along the process, a team you can entrust with all of your sensitive financial information who can educate you on the proper loan options and the ins and outs of homebuying is key to a successful transaction.

Here at Inlanta Mortgage, our mission is to be the home financing partner that you trust to serve your family, friends, and community. Whether you are purchasing or refinancing, we want you to know we have your back every step of the way. Our team of mortgage professionals works with top real estate agents every day. While we want to assist you with all of your mortgage lending needs and can refer you to a great agent, we also want to provide you with the tools necessary to choose the right lender/realtor partner for your particular needs and circumstances. Here are some tips on how to choose the right homebuying team.

  1. Do Your Research

The market is changing every day. That’s why it is wise to shop around and talk to a few local lenders and agents in your area to learn more about the types of loan programs offered, current market rates, and current listings available. This will also give you the chance to explain any unique financial needs you may have to your potential lender as well as your timeline and exactly what you are looking for to your agent. Note – while it may be tempting to want to choose a loan officer that advertises the “best rate,” it is important to take into account customer satisfaction, knowledge, experience, and more.

  1. Referrals and Testimonials 

You can learn a lot about a lender or agent based on real online reviews and testimonials from real clients they have had in the past. Successful transactions produce successful reviews and can provide social proof of happy peers in your area that are now homeowners with the help of their homebuying team. Visit lender and agent websites, Google+, Yelp, or Facebook pages and speak to recent clients to get an inside look at past client experiences.

  1. Communication

Communication is key during the homebuying process, so having a team that will stay in touch with you and keep you up to date on the market outlook, status of your loan, and any current listing information while providing you with honest feedback is important. When researching lenders and agents, inquire with them about their communication styles and if applicable, ask to meet their team prior to conducting business with them to learn how it all works. It is important for you to not feel afraid to ask questions. Open communication with your loan officer and real estate agent will help ease any worries you have throughout the process.

  1. Knowledge and Experience

Strong knowledge of the real estate and loan process along with information on loan programs and the current market is important when choosing the right team to help you purchase a home. With knowledge comes experience. Working with an experienced team that has successfully helped many homeowners achieve the American dream may help give you peace of mind during the process. Whether you are new to the process or are a seasoned homeowner, your agent and loan officer should be able to speak with you on the process and provide you with the education and guidance needed based on your level of experience. Ask about professional awards, years of experience, licenses, and credentials to ensure you are selecting the right team for your needs.

If you’d like to get in touch with one of our mortgage professionals today, click here to find a local lender within your area or contact us for more information. We’d love to have one of our lenders set you up with a top real estate professional – ask us about our referral partners today.

 

25 Years Strong

Here’s to 25 Years Strong!

Twenty-five years ago, our Chairman of the Board and Founder, John Knowlton, assembled a small group of mortgage professionals and began offering mortgage lending services in Greater Milwaukee, Wisconsin. Today, Inlanta Mortgage continues to thrive, employing more than 250 people with a solid presence in 20 states across the nation.

Key to Success

It’s no secret – our employees are the key to our success. Team Inlanta’s first priority and #1 shared goal is to provide the highest-level mortgage lending services possible to our friends, families, and communities.

Here at Inlanta, our licensed, experienced mortgage loan officers help borrowers determine the loan program best suited to their financial needs from our wide array of loan products to make home buying a breeze. Our highly trained team of processors work diligently to collect and organize all the information necessary for a loan file to move to underwriting. Our underwriting team then reviews all loan files quickly and thoroughly, speeding up the time it takes to move your loan file on to our experienced funding team. The funding department ensures that your closing date goes as planned and you are able to move into your house on time!

Educating Borrowers

It is our responsibility to educate our borrowers and our communities to help them make wise choices when it comes to home financing. We take this responsibility seriously and will continue to do so for the next 25 years. While it is no substitute for a face-to-face meeting with one of our licensed mortgage loan officers, our blog regularly includes home buyer tips, industry news, and specific loan program information to support borrowers during this important time. Visit our blog regularly or visit us on FacebookTwitterLinkedIn, Google +, Pinterest, and Instagram for current news, events, team photos, and more.

About Inlanta Mortgage

Headquartered in Pewaukee, WI, Inlanta Mortgage was established in 1993 and is celebrating its 25th anniversary in 2018. The company has grown to over 40 branches in 20 states and over 250 employees.

Inlanta Mortgage’s mission is to be the home financing partner that you trust to serve your family, friends, and community. Our team of dedicated mortgage professionals is committed to delivering an exceptional experience using honest and ethical lending practices.

Inlanta Mortgage was named a Milwaukee Journal Sentinel Top Workplace in 2014, 2015, and 2016. Inlanta has also been recognized as one of the “50 Best Mortgage Companies to Work For” by Mortgage Executive Magazine and one of the country’s “Top Mortgage Employers” by National Mortgage Professional.

To find your local Inlanta Mortgage branch or loan officer, click here. If you are interested in employment opportunities with Inlanta Mortgage, we encourage you to visit our careers page today!

 

Inlanta Mortgage Promotes Paul Buege to President

 Original press release from PR Web

Inlanta Mortgage Chairman, John Knowlton, announced the promotion of Mr. Paul Buege to the role of President.

Mr. Buege is currently the Chief Operating Officer and will continue those responsibilities. Nicholas DelTorto will remain as CEO. “I am proud to announce Paul’s promotion to President. It has been a privilege to work with and get to know him over the past five years. Paul and his team have developed a premier service platform for our loan originators and consumers. He is dedicated to Inlanta and the continued growth and success of our company,” Knowlton said in a company statement announcing the move.

“Our senior management team has positioned us for a solid future. We have worked together for many years and that continuity in leadership translates into a consistent focus on improving our platform, performance for the branches, and highest level of progressive services and technology for our referral partners and consumers,” said DelTorto.

“Paul has done outstanding work in developing a sales and service accountability culture at Inlanta. Our ‘mortgage banking for grown-ups’ approach allows the true mortgage professional to operate using their personally developed skills to build on their success,” Knowlton adds.

Inlanta announces this move as they celebrate 25 years in the mortgage business. “We are very proud to celebrate our 25th anniversary this year. In a business where so many have come and gone, Inlanta is looking forward to serving our customers and referral partners for many years to come,” Knowlton said.

About Inlanta Mortgage 
Headquartered in Pewaukee, WI, Inlanta Mortgage was established in 1993 and is celebrating its 25th anniversary in 2018. The company has grown to over 40 branches in 20 states and over 250 employees. Inlanta Mortgage’s mission is to be the home financing partner that you trust to serve your family, friends, and community. Their team of dedicated mortgage professionals is committed to delivering an exceptional experience using honest and ethical lending practices.

Inlanta Mortgage was named a Milwaukee Journal Sentinel Top Workplace in 2014, 2015, and 2016. Inlanta has also been recognized as one of the “50 Best Mortgage Companies to Work For” by Mortgage Executive Magazine and one of the country’s “Top Mortgage Employers” by National Mortgage Professional.

Inlanta Mortgage continually seeks branch managers and loan officers who want to grow their business. To learn about growth opportunities, please contact Brian Jensen (Midwest) at brianjensen@inlanta.com or 630-927-0380; or Kevin Laffey (Kansas, Missouri, Iowa, Nebraska) at kevinlaffey@inlanta.com or 913-645-4647. To learn about opportunities in other locations, visit http://www.inlantapartners.com, call 262-439-4260, or email partners@inlanta.com.

Inlanta Mortgage, Inc. NMLS #1016.

Embark on the Purchase Process – A Loan Road Map for First-Time Buyers

Embark on the Purchase Process – A Loan Road Map for First-Time Buyers

If you are just beginning to embark on the purchase process for the very first time, you may be unsure of what lies ahead on your journey. That’s why we’ve provided the steps via an Inlanta Loan Road Map to help guide you on your way to homeownership.

 

Stop #1 – Get Pre-Approved

Submit your application and the documents needed to verify your income, assets, and debts, including thirty days of recent paystubs, last two years of W-2s, and two recent bank statements.

Stop #2 – Home Search and Offer

Your Realtor will help you find the perfect home and write up an offer letter to the seller, which details the price you are offering to pay for a property and any applicable conditions.

Stop #3 – Purchase Agreement

Your Realtor will write up the contract for you and the seller to sign. A deposit is generally required. This agreement will outline all of the required dates, deadlines, and contingencies.

Stop #4 – Home Inspection

If the offer is accepted, a home inspection is next. Home inspections are not required but highly recommended. A home inspector will look for any issues or violations with the property.

Stop #5 – Application and Disclosures

Your loan officer will have you review and sign a number of documents and disclosures, including your mortgage application and a Good Faith Estimate, which details the estimated costs of financing.

Stop #6 – Appraisal and Title

An appraisal (an estimate or property value) will be ordered and provided to the underwriting team. Your loan officer will select a title company to research the property title.

Stop #7 – Homeowners Insurance

Proof of insurance is required prior to closing. Your first year’s premium must be paid in full. Have your insurance agent contact your loan officer to ensure they receive the proper insurance binder.

Stop #8 – Final Approval

Underwriting will review all the documentation necessary to approve your mortgage loan additional verifications may be necessary at this point. If all of the documentation is acceptable, you will be clear to close.

Stop #9 – Closing Disclosure

You will get a final breakdown of all costs and money required at closing. For closing, you will need government-issued identification and a certified check to pay closing costs.

Stop #10 – Your Loan Closing!

It’s closing time! Did you bring your government issued identification? Do you have a certified check to cover closing costs? During the closing, a representative from the title company will review all the loan documents with you. They will get signatures from both you and the seller. After all money is distributed, the deed will then be recorded with you as the new owner of record!

 

Rest assured you are not on this journey alone. Your loan officer will be with you every step of the way and will be able to answer any questions that arise. Click here to find your local Inlanta loan officer today to get started on your home loan journey!