The housing debacle that forced millions out of their homes in the last decade is something we’d all like to forget. But if we did in fact forget we’re likely to repeat that disastrous cycle once again. This famous quote is actually attributed to a few different people but it rings true today that, “Those who forget the past are doomed to repeat it.” It didn’t matter where one lived, be it Pittsburgh, Pennsylvania or Pensacola, Florida, there were few areas that avoided the collapse.

A Brief Look

Homeownership rates hit a record high in 2004 and stayed above the 68% rate for the next four years. Looking back, it’s easy to see why so many bought homes—it was easy to qualify. Conventional loans underwritten to Fannie Mae and Freddie Mac standards, while still easily making up the largest share of the market, soon found some formidable competition with so-called “alternative” loans, loans that didn’t require verification of certain important items such as income or assets. Subprime loans were prevalent as well, providing home loans to those with damaged credit.

As the market for homebuyers began to shrink and home sales began to decline, lenders began inventing new loan programs that combined alternative documentation with poor credit along with little or nothing down. Even Fannie and Freddie got into the act. FHA, too. And we all know the result. Millions of foreclosures as people lost their homes.


You know us by our name. For our clients both past and present, we’re NJ Lenders Corp. and proud of our reputation in the industry. But despite our relationship with our treasured customers there are some who may not know the whole story beyond the name of our firm. Here are a few facts you might be surprised to know:


NJ Lenders Corp was founded in 1991 yet we’re known far beyond New Jersey borders. In fact, we provide conventional as well as government-backed loans in not just New Jersey but New York, Connecticut, Pennsylvania, Virginia, Maryland and Florida. That’s quite a footprint and we approve Fannie Mae, Freddie Mac, FHA, VA, USDA and a host of other programs.


Serving the communities in these seven states are over 80 experienced, licensed residential mortgage loan officers and more than 180 employees. Although we do offer more loan options than most other mortgage companies can provide, that doesn’t mean we send loan applications to other lenders for approval. We’re the lender and we fund loans every single day.

Once you meet with your loan officer, your loan application is then delivered to your loan processor who will prepare your loan file for approval. Once all documentation has been collected your loan goes directly to one of our staff of underwriters. After the file has been approved your closing papers are drawn and delivered to the settlement agent. Everything is ...

This could just as easily be called, “Top Tips for a Loan Approval” or “Don’t Make These Mistakes” but however you word it, there are some things that you absolutely must avoid when applying for a mortgage or while your loan is in the process of getting an approval. For a smooth closing and a stress-free process, here are some things you want to pay attention to.

Credit Inquiries

When you apply for credit, even if you change your mind and don’t complete the purchase, your credit report will note that some merchant or service provider looked at your credit report at your direction when applying for a loan. Say that you wanted to buy a new car and applied for financing at your bank but decided not to buy the new car after all. Even though you didn’t add to your debt you did create a question mark at the mortgage company.

The lender will see that you applied for credit but because it doesn’t show that you decided not to take the loan after all, the lender doesn’t have verification of that. Credit balances and monthly payments are reported to the credit bureaus every 30 days so the lender can’t verify whether or not you have a new monthly payment.

Okay, let’s now say you did buy that car and you can show your monthly payment to your lender, how does that affect your debt ratios? Buying anything on credit while your loan is being approved can mean you suddenly can’t qualify due to your new debt load. In ...

College Tuition On the Horizon?

Jun 25
Category | Blog

New parents at some point begin to hear the phrase, “save for college education.” Yet many don’t pay that much attention to it, especially if little Junior is still crawling around on all fours. There’s plenty of time to think about college, they say. And it’s easy to let that very important financial aspect of their lives slip to the back burner. After all, being a new parent provides enough new responsibilities as it is. But time rolls on and when Junior is now in high school and looking at colleges, parents find themselves wishing they had paid more attention to a college savings plan and wonder how to pay for it.

There are options, and for those without some sort of formal college savings vehicle the first place they might look is their own IRA, 401(k) or other retirement savings. And of course there are always student loans. But many don’t realize there’s another option and it’s as plain as the roof over their heads-- a cash out refinance.

Retirement Funds

Tapping into retirement funds for college expenses is something any financial planner will tell you is a no-no. Yet it’s not uncommon for someone to have a retirement fund of some sort yet not a separate college fund. It’s also not uncommon for someone to not have enough in a retirement ...

NJ Lenders - Mortgage Terms - New York New Jersey LendersWhen calling around for interest rate quotes or visiting any number of mortgage websites, you’ll typically see two types of terms listed, a 30 year rate and a 15 year. By far, the 30 year mortgage is the most popular but coming in second is the 15 year loan. Which loan term is better for you?

There are more 30 year mortgages than 15 because they’re easier to qualify for.  A 30 year mortgage payment will be lower than a 15 year. How much so? If you compare a 30 year rate of 3.75% and a 15 year rate of 3.50% on a $300,000 loan, the principal and interest payments are:

30 yr       $1,389

15 yr       $2,144

The 30 year loan payment is $755 lower than the 15 year mortgage even though the rate on the 15 year loan is lower. Yet the amount of interest paid over the life of the loan is considerably different. How much interest is paid over the full term of the loan?

30 yr       $200,164

15 yr       $  86,036

That’s the tradeoff. Yes, the payments are lower but the amount of interest paid on a 30 year loan is $114,128 more and while ...

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