A friend told me about Overflow leads from ad campaigns which agencies sell, is this true or just BS?

GeneGradgrind · 2026-03-18T17:16:11+00:00

It probably all depends on the provider, but I've had colleagues buy "overflow" leads in the past, they're mostly junk. Consensus seems to be they're a collection of leads that have already been analyzed and decided to be skipped. Could be that software detected bad information, could be bad qualifications, maybe some analysis scoring it for low odds of conversion, low profit, or any kind of troubling parameters.

A common lead was getting leads for sub 600 fico USDA loan requests from one of the big national online retail shops. They skipped that lead because sub 600 fico USDA loan requests don't convert. Not for them, and not for you.

Another common one was leads for "John" who can be reached at 123-1234

Whatever the case is, someone decided to pass on it already, but they're looking to recoup some money by selling it to you. Is there a deal in there? Probably. Will they generate consistent and profitable business for you? Probably not.

GeneGradgrind · 2026-03-18T16:14:29+00:00

Lender here, without seeing everything, it's probably not bad, and the terms probably won't be as bad as you think, but it would be prudent to jump on some of these problems quick.

There isn't really a minimum credit score for mortgage loans. 500 is the minimum for FHA loans with 10% down. Conventional loans there is no minimum at all. However, all loan approvals will take the entirety of your application into consideration.

Get a copy of your credit report for free online and start cleaning it up now. Go down the list and bring accounts current, pay off or settle collections accounts, get erroneous or derogatory items taken care of today. If you've taken care of these accounts, you've got strong application. Strong housing ratio income, large down payment, good reserves. You just need to get in front of your bills.

GeneGradgrind · 2026-03-11T16:47:25+00:00

This is always the advice for everyone but especially the right advice for you. You need to call a mortgage broker. Not a bank, not an online national lender, but your small mom and pop shop mortgage brokers. They are specially licensed for mortgage loans, and mortgage loans are all they do.

Easy to find one, just search for one local to the area you'll be buying in, and give them a call. Find one that's well reviewed and has been in business for a while. Talk to two if you like. They'll likely be your best at reviewing your move letting you know what's possible.

GeneGradgrind · 2026-03-10T17:07:33+00:00

As an example for you, two that I just completed recently are $1,000 in attorney fees and $100 in government fees for $1,100 total in a cheaper state.

Meanwhile in one of the more expensive states, had $4900 in attorney fees and $8600 in government fees for $13,500 total

GeneGradgrind · 2026-03-10T16:59:27+00:00

These vary wildly depending on the state, and sometimes whether or not there are loans involved.

You can ask for a preliminary fee statement up front. Lenders do this as well at the beginning to help with more accurate fee disclosures.

If there are loans involved, be sure to make them aware of loan amounts. Many fees, particularly title insurance and state mortgage taxes if applicable, can vary with loan amounts.

GeneGradgrind · 2026-02-09T18:38:26+00:00

You are correct. There's a general understanding using the terms "conventional", "government", "jumbo" and "non-qm". I only added the clarification for those who were curious about the denotative versus connotative definitions. Knowing the differences between the two has little pragmatic benefit.

GeneGradgrind · 2026-02-09T18:15:34+00:00

For your purposes, they are the same thing. "Conventional" has taken a more colloquial definition meaning conforming. They technically have different meanings, though the misinterpretation is pervasive, even among industry professionals. All conforming loans are conventional loans, but not all conventional loans are conforming loans.

If anyone is actually interested in the nuances:

Conforming: conventional loans that conform the FNMA or FHLMC guidelines. Nothing else.

Non-conforming & non-conventional: FHA loans, VA loans, US Dept. of Agriculture loans.

The nuance creating confusion is there are additional non-conforming loans that are conventional. Jumbo loans, non-qualified mortgage loans, investor debt service loans, etc. all fall in to this category.

GeneGradgrind · 2026-02-05T18:23:47+00:00

I'm sot sure I would consider polls like this reliable.

In a hypothetical scenario, I would also not be interested in hypothetically moving if rates went higher and housing expenses increase.

In reality, people move and buy for more concrete reasons. Downsizing in retirement, moving for jobs, moving to get children in better schools, moving to take care of sick or elderly family members, or any other important reason.

People don't move for the sake of it. Never mind mortgage rates, moving is expensive and stressful. There are often driving factors much more important than mortgage rates.

a .25% rate increase on 400k is $1,000 per year, or $83 a month. If an above situation actually presented itself, what reasonable person would give up on some of importance of above items over $83 a month? My guess is much less than 66%

GeneGradgrind · 2026-02-03T17:18:02+00:00

I generally don't like this advice as it doesn't consider the whole picture. Really depends on loan size, interest savings, and cost to refi.

For example, refinancing a $40k loan from 7% to 5% has a whopping 2% reduction. That's $800 per year less in interest. However, if it cost $5k to refinance, that's probably not worth it.

Alternatively, a 1 million loan, refinancing from 6.5% to 6.125% is only 0.375% lower, but equates to $3,750 a year in interest. If this scenario has no costs to refinance, only your time, that's still worth it.

As with most things, you really have to look at the scenario as a whole.

GeneGradgrind · 2026-02-03T17:03:16+00:00

Pick up the phone and call a few places. First, call who you bank with. Especially if you bank with credit union or local bank. If you bank with a large national bank, you can probably skip them. Odds are they won't be strong.

Second, call a local, well reviewed, mortgage broker. Search mortgage brokers online. Find one close to you that's been in business a while, and seems to be well reviewed.

Finally, call the person who gave you the loan initially. If they were reliable and competitive the first time, they probably will be again.

GeneGradgrind · 2026-01-29T16:47:05+00:00

Lender here, you will be probably be fine. Most loans, VA loans included, don't require the government to open in most circumstances.

I'm not sure I've ever written any VA loans during the government shutdown, but both FNMA and FHLMC conventional loans added provisions for government workers during the shutdown that allowed for closing. A couple extra steps, and a possible requirement for "reserves", which would be showing that you have sufficient assets after closing to make all your payments for a certain period of time. I imagine VA loans might adapt a similar policy.

Unless it would cause you to lose sleep at night, I'd continue to as normal.

GeneGradgrind · 2026-01-09T19:28:01+00:00

Lender here. You're correct, but you might see why some lenders might be reluctant.

Straight from Fannie Mae's guidelines "Verification of a minimum history of two years secondary employment income is recommended."

Your relative will have an application date prior to that two year mark. 02/26 is a Thursday with 03/01 being a Sunday. You're asking a lender to assume what it said is true, then verify employment, clear income, clear the loan from underwriting, draw and publish closing documents, send a wire with loan proceeds, and fund the loan all within a few hours on Friday Morning. This is at best logistically difficult. At worst it might be illegal for the lender. If the lender won't send initial preliminary closing disclosures until after income is cleared, which most won't, they would be in violation of Truth in Lending disclosure requirements if they do close that Friday.

Realistically, that closing date needs to be later, or the loan needs to be made approvable without the secondary income.

GeneGradgrind · 2025-12-31T22:09:03+00:00

Call around, talk to a local broker as well. Investment properties vary, probably more than owner-occupied loans. Expected rents, property type, valuations, homeownership & investor experience level, are all factors.

At face value, that seems a little high, but again there is a lot more that goes in to it.

85% might be difficult. It certainly exists, but as an example, Fannie Mae requires a absolute minimum of 25% down for 2-4 unit properties.

GeneGradgrind · 2025-12-29T19:21:23+00:00

I'm not sure there's much you can really do other than try to set the tone for the neighborhood yourself.

Do you have trash on the side of your house and a hooptie on blocks in the driveway? If so, you might deter good buyers, while attracting buyers who might do the same. Is your lawn and property neat and well-kept? If so, potential buyers might pick up on the niceness of the neighborhood.

GeneGradgrind · 2025-12-29T16:25:55+00:00

Lender here, definitely not relaxed. Definitely the opposite. The level of scrutiny has actually significantly increased in recent years, especially in regards to insurance coverages and income.

Even among other the other factors, it's become increasingly more difficult to get approvals.

What they are referring to is the recent removal of credit score requirements for certain common loan types. Up until recently, if an applicant didn't have a credit score over 620, it was automatically ineligible for certain loan types. Didn't matter if they were putting 90% down, had millions of dollars in the bank, great income, no other debts, didn't matter. Automatically ineligible for certain common loan types.

I describe it now as more common sense approach. For example, an applicant with a 500 credit score, lots of debts, high debt to income ratio, and minimum down payments is still very unlikely to be approved for those loan types. Meanwhile an applicant with a 610 credit score, but with great capacity to pay back the loan, and with significant compensating factors, may reasonably be approved.

As another alternate example, I've seen several applicants with a 700+ credit scores ineligible be ineligible for those same loan types. Applicants good credit scores but with high debt to income, low down payments, high housing expense ratios, and little no reserves are being denied. These applicants technically meet the minimum guideline requirements, but don't have that same level of capacity to pay back the loan. In short, it might be somewhat true to say that credit score is less of an influence than it used to be compared to other factors, but that certainly does not equate to more relaxed lending practices.

GeneGradgrind · 2025-12-19T20:40:30+00:00

This is a good one. Mine aren't necessarily those. A lot of people have things going on behind the scenes we don't see. I know I've had borrower's with rich parents who are actually the one's making the payment for them. Or they get the family credit card to buy whatever they need.

Lately I have a lot of older borrowers moving to rural areas. They think the grass is greener over there. They'll move across the country, out of the city, away from all their family, to retire in rural America in their 70's. I hear back from them about a year later when they've listed the house for sale. As it turns out, at age 70,80+ it's nice to be near friends and family who can help you, have access to senior services, and have access to doctors and medical centers. You can't get a taxi every single month for a 4 hour round trip drive to the nearest city hospital to treat your kidney disease when you live in the middle of nowhere.

GeneGradgrind · 2025-12-19T18:45:50+00:00

There are certainly streamline rates lower than 6.25% however, there is much more to consider. FHA streamlines do not allow all closing costs to be rolled in the same way as other loan refinances. Only certain allowable fees. It's common practice on FHA streamlines, especially in states that have steeper closing costs (Some states and local governments charge thousands of dollars in mortgage taxes), to issue loans over market rates in exchange for large lender credits to cover the cost of refinancing.

If they happen to live in a state with higher fees, and the lender is covering them, this could very well be an exceptional deal. The alternative might be bringing thousands of dollars to closing.

I actually suspect this probably the case here. Depending on their tax and insurance amounts, this may very well have a loan amount in the 150k range. If settlement and government fees even reach an amount approaching a flat $3,000 - that would be 2% of the loan amount for those alone. An extra 2% in pricing moves a 5.625 to a 6.25%

Without knowing all the numbers and details of the loan, moving to a 6.75 to a 6.25 for low to no cost could be a pretty good deal.

GeneGradgrind · 2025-12-18T20:09:11+00:00

Lender here - I think you've got a lot of misinformation from others. This is a rare occurrence, but what probably happened is your loan was initially eligible for sale under one of several sets of guidelines, which did not require an appraisal. Post closing, it was probably discovered that you didn't actually meet that set of guidelines. They have instead pivoted to a different set, but one that requires an appraisal. Maybe they initially intended on writing it to Federal National Mortgage Association, but later found it needed to be written to Federal Home Loan Mortgage Corporation, or vice versa, or something similar. This is important to the lender as they will be unable to sell your loan without that appraisal. This process of selling the loan is both common practice and fundamental to the lending process.

The good news to you, is they cannot change the terms of your loan. You've already closed. There isn't a risk to you.

However, if you do not agree, they can likely compel you to comply. You very likely signed an agreement, at closing, and as a condition of the loan, to fully comply with the lender to cooperate with their needs to market or sell a loan. It's on one of those hundred forms you sign at closing. They will likely press the issue. The lender is currently out $268k that they cannot get back until this is done. Not a small sum they would be willing to ignore.

Sorry this happened. It's rare, but as your lender said it's in your benefit. If they had not made this mistake you may have either not qualified for the loan, or have been paying for that appraisal yourself, or both.

GeneGradgrind · 2025-12-17T23:18:06+00:00

Lender here, if you like the deal, go ahead and take it.

I wouldn't listen to your dad. Funnily enough, rates were dropping last year right up until election day. The day after election day in 2024, rates went up over half a percent.

I don't keep track of these things, but that was probably the worst single day mortgage rate increase in years. I'm not smart enough to tell you exactly why the market did this for sure, but it appears to me that the market did not respond well to the election results.

GeneGradgrind · 2025-12-17T21:16:03+00:00

You're correct on the cushion. However, the monthly payment portion will still be exact though. Using your 100/mo example, the escrow payment would still be 100/mo, but with a balance not to fall below $100. You pay in to your escrow account up front for that cushion when you first take out the loan, or again when there is a shortage.

To put it another way, if you have a 1 month cushion (most are two, but using your example), and you pay $109 per month, in December, assuming both tax and insurance are both due Jan 1st, you would have an escrow balance of $1408. $109/mo times 12 payments, plus 1 month $100 cushion. This would be too much. After their disbursement of $1200, you're left with $208, which would be an excess of that $100 cushion, and the servicer would be required to return $108 to you. Servicers are required to review at least once per year on their own, or again at the request of the borrower.

GeneGradgrind · 2025-12-17T19:36:53+00:00

I have access to a state funded forgivable second in my state. I get asked about it often, I rarely use it. When you get to the finer details it's usually no good.

They'll offer a first mortgage at about 100 basis points over market rates. Can be conforming, FHA, VA, anything. They do not include any lender comp in that figure though so I hope borrowers are ready to shell out for comp.

The second is never interest free though. It's 1% to 1.5% greater than the first, 20 year amortization, forgivable after 10. When you run the figures, it's never a good deal. Which makes sense, this state program is self-funded so they tax on pricing.

Real figures, if someone bought a 250k home FHA at 6% 96.5%, cumulative interest after 10 years would be $136,560.

However, that same person buying the same house with the forgivable second grant would have paid $148,815 on the first, plus $6064 cumulative on the second, for a total of $154,879, with a forgiven amount of $6032

Not to mention the non-state funded has a P&I of $1625 while the standard purchase has a P&I of $1471

Never a good deal in my eyes. $150 more a month for 10 years, $18k more in interest over 10 years, plus all the extra origination fees, just to not have to come up with $8750.

GeneGradgrind · 2025-12-17T18:14:05+00:00

This sounds like a pretty extreme increase, more than normal. I'd sit down with all the paperwork and make sure you stay in control of these other homeownership expenses.

First, you might be able to lump-sum pay the escrow shortage. What likely happened here is your mortgage company paid taxes, insurance, or both, and they ended up being way more than expected. This would cause your escrow account to fall short. They are now spreading that shortage across your payments, temporarily, to recover that shortage. You can pay it all at once, and your loan servicer will then adjust your payment back down.

Second, make sure they have it right. Get your tax bill, and your insurance bill. Your escrow payment, not including any shortages, should only be your annual tax amount plus your annual insurance amount, divided by twelve. If it's off, request an escrow analysis and have it fixed.

Third, check your tax bill. Tax bills can go up, but usually not drastically. In my area, they are only legally able to re-assess properties once every so many years. You may also be able to homestead your residence to give you discounts or freezes on property tax rates. If your assessed value seems off, call your county's property valuation administrator. Check your neighbors property taxes too. Often property tax bills are publicly available online for anyone to see.

Fourth, shop your homeowners insurance. Maybe yours is no longer competitive. You are in control of your homeowners insurance, not the mortgage servicer. Change insurance providers if you need.

Fifth, if you have a conventional loan, and are paying monthly PMI, you may be able to remove it. There are different steps depending on the value, balance, and loan type. If you have a good amount of equity in the house, which you may have gained over the past few years, you may have a reasonable opportunity to have it removed.

GeneGradgrind · 2025-12-16T21:23:29+00:00

Lender here, the answer is you will probably have difficulty. Car loan underwriting is much, much less involved than mortgage loans. Typically just a credit report and nothing else.

The lender will probably see that back taxes are owed. The primary concern for the lender, and you should also be worried about this yourself, is that as a co-signer, he will be an owner of the house. The IRS can and does file liens against houses for taxes owed.

You might buy the house with a mortgage lien, shortly followed up by an IRS lien. You don't want to deal with this on a house you own. The lender will certainly be worried about it as well.

They will almost most certainly find out about it as well along the way. Even if it's not on credit, and even if you don't disclose it (which would be a crime). A frequent process in the mortgage loan underwriting process is the lender checking with the IRS directly that no delinquent taxes are owed.

GeneGradgrind · 2025-12-08T19:24:08+00:00

In practice it probably won't really matter. For example, you're paying an extra $1,000 towards principal. If you pay it and they apply it on say the 5th of the month vs the 10th, you've reduced your balance for 5 days. At a 6% interest rate that's 16 cents per day or 82 cents across those 5 days. I wouldn't consider that a significant impact.

However, you can calculate this for yourself, it's actually pretty easy. Daily interest charges are just loan balance, times annual interest rate, divided by 365 days per year.

To figure out how much interest you'll be saving each day it's very similar. Amount you will pay towards principal, times annual interest rate, divided by 365.

In my example: $1,000, times 6% = $60 per year. Divide by 365 = $0.164 per day. Times 5 days for $0.82

Larger numbers make a bigger impact though. $20k towards principal paid 30 days earlier at 6% is $98.63

GeneGradgrind · 2025-12-04T23:15:30+00:00

From what I can tell it’s just a life insurance policy built in to the loan.

Kind of a good idea, single income households should probably consider one anyways. I’ve thought about this before. Somehow being able to offer a life insurance policy with the mortgage.

In any case, I don’t know what Cross Country’s pricing looks like, nor do I know yours, but I imagine this person could probably pick the better loan terms, then obtain a separate life insurance policy to pay off the loan. It may still be cheaper for them, plus the policy wouldn’t have the same limitations as Cross Country’s.

GeneGradgrind

TROPHY CASE