The last 2-3 weeks has been crazy in the mortgage industry. Not with the usual type stuff but with preparing for a change in the law of how mortgage companies quote interest rates and how mortgage loan officers get paid. That's right now the government is regulating how you get your interest rate and how we get paid. Hmmm is that considered Socialism?
Bottom line is that lenders have been busy trying to calculate if the actual ruling would take affect and how to put it in play and on April 6 it was in play.
This is one of the things that I had mentioned would lead to higher borrowing costs for borrowers because of what lenders needed to do to now safeguard themselves. Rates are still awesome so it is not as big a deal now but as rates creep up....it will matter.
One exciting thing is that I published my first editorial for an online newspaper on mortgages. Looks like I am going to be doing this periodically and am excited for the opportunity.
Right now the big thing is that we are starting to enter our Spring market and with rates where they are at and home prices where they are at....why aren't you out buying a house?
I realize that if you are a move up borrower equity may be an issue but if you are a first time buyer.....get out there.
Keeping it simple this week as I get back to this...Have a good weekend!
Friday, April 8, 2011
Tuesday, March 15, 2011
Homes to get more Expensive April 1....No Fooling
As April 1 approaches I have to think to myself how many will get priced out of buying that dream home. Don't get me wrong, rates will still be good and home prices low but 2 major factors will be happening that will drive the cost of borrowing money and owning a home up.
First off Fannie Mae and Freddie Mac are making adjustments to their risk based pricing. What that means is that the adjustments to interest rates will go up for various items. Typically these will include type of loan, loan to value, credit score, combined loan to value, type or property and a few other items. These adjustments will affect the interest rate a particular consumer will be able to receive.
Shortly after this FHA will be following suit in raising their costs but will be doing it via their mortgage insurance premiums which will affect your payment and home affordability.
Second is that the Dodd-Frank Act is going to start coming in to full swing. This was passed to keep financial institutions in check. April 1 is when the portion of the act that affects how lenders and loan offers can be compensated comes in to effect. This could potentially affect borrowing costs either in actual costs paid or the interest rate paid. Lenders have had some time to figure this all out but the clarity of the act is vague and the FED is not even sure what part of it means.
Now all of these can and could affect your affordability but you need to remember that rates are still low and home prices are as well. So it still has not been a better time to buy a home. First time buyers especially can buy more home then they dreamed of a few years ago and they need to get out there and buy. Move up buyers can buy that "mansion" they always wanted and of course 2nd homes and investment properties have no where to go in value but up if you buy now.
Make sure to let me know if you have any questions or comments and have yourself a great week.
First off Fannie Mae and Freddie Mac are making adjustments to their risk based pricing. What that means is that the adjustments to interest rates will go up for various items. Typically these will include type of loan, loan to value, credit score, combined loan to value, type or property and a few other items. These adjustments will affect the interest rate a particular consumer will be able to receive.
Shortly after this FHA will be following suit in raising their costs but will be doing it via their mortgage insurance premiums which will affect your payment and home affordability.
Second is that the Dodd-Frank Act is going to start coming in to full swing. This was passed to keep financial institutions in check. April 1 is when the portion of the act that affects how lenders and loan offers can be compensated comes in to effect. This could potentially affect borrowing costs either in actual costs paid or the interest rate paid. Lenders have had some time to figure this all out but the clarity of the act is vague and the FED is not even sure what part of it means.
Now all of these can and could affect your affordability but you need to remember that rates are still low and home prices are as well. So it still has not been a better time to buy a home. First time buyers especially can buy more home then they dreamed of a few years ago and they need to get out there and buy. Move up buyers can buy that "mansion" they always wanted and of course 2nd homes and investment properties have no where to go in value but up if you buy now.
Make sure to let me know if you have any questions or comments and have yourself a great week.
Monday, March 7, 2011
3rd Party Performers and the state of Mortgages
As previously mentioned on the last post I would talk a little about the appraisal and the title company.
First off on the appraisal all it does it gives you and the lender an idea of market value. The appraiser is to pull other properties that are similar in the market and that have recently sold and compare them to your home. Room count, square footage and home type are the 3 main things that are looked at. Then they compare things like decks, fireplace and market appeal. Obviously the process is more complex then this but this is the basics. When they are done making the comparison they come up with a value on your home. With a purchase it almost always comes in at the sales price. However with an appraisal and in this present market we are having tough times getting homes to appraise for what will help the financing work.
One major important thing is that the appraiser does not warrant the condition of the property...only the value.
Another 3rd party vendor as previously mentioned it the title company. The title company has an interesting job as they are warranting that the title work is free and clear. A title on a house is much like that of a car, but a lot longer as it entails the recorded history of real estate transactions for this property/home.
The title company has a few things that it needs to check out. The first is that they make sure that all of the recordings are correct so that there may not be another person out there claiming to have ownership. They check for liens and judgments against the property as well as potential easements and encroachments. It is their job to help correct any errors to protect you and the lender.
An encroachment is when part of your house/property or the neighboring property encroaches on the other. What this means is that somehow you are extended in to the next parcel of land. his could be because of a variety of reasons and is usually easily corrected.
A common easement is like when their is a utility running through your yard that is for major use. What this means is that you need to allow access to the company/person that has the recorded easement so that they can access it.
There are other scenarios that can pop up with title work but those are the 2 most common. Most people refer to title insurance as "peace of mind" insurance. It protects you against faulty title which is important. If the title company makes a mistake it is up to them to correct it for you or to take care of any issues due to financial loss based on their error.
Now there is a lot more that I have not covered on these items but having and idea or overview is always helpful to have. Any questions on this ....ask and I will answer.
The mortgage industry is in a huge state of flux right now. Part of it is that that it is waiting to see what will or will not happen with April 1 and compensation of loan officers. Right now large banks will be looking to make more money on each loan then they did before. How the heck is that good for consumers? What is hard is that the people that are attempting to create and enforce all of these new regulations do not really understand the business at hand. They think that they are doing all these good things when all they are doing is making things worse and hurting the consumer.
Whats next, regulating what a sales person selling suits can make or telling them how they can be paid?
The main idiots that messed things up are gone. With all of the new requirements for lenders as it pertains to NMLS there are many that could not be in the business and many that opted out of doing what was needed.
The industry itself has done a good job of cleaning things up and really does not need help from Mr. Dodd or Mr. Frank.
Rates are continuing to stay strong and getting a mortgage is still Simple-Fast and Hassle Free.
That's it for today and make sure to follow me either on facebook at http://www.facebook.com/pages/Toms-Wisdom-for-Mortgages-and-other-things/101866693225282
or on twitter @omsiguy.
Have a great week!
First off on the appraisal all it does it gives you and the lender an idea of market value. The appraiser is to pull other properties that are similar in the market and that have recently sold and compare them to your home. Room count, square footage and home type are the 3 main things that are looked at. Then they compare things like decks, fireplace and market appeal. Obviously the process is more complex then this but this is the basics. When they are done making the comparison they come up with a value on your home. With a purchase it almost always comes in at the sales price. However with an appraisal and in this present market we are having tough times getting homes to appraise for what will help the financing work.
One major important thing is that the appraiser does not warrant the condition of the property...only the value.
Another 3rd party vendor as previously mentioned it the title company. The title company has an interesting job as they are warranting that the title work is free and clear. A title on a house is much like that of a car, but a lot longer as it entails the recorded history of real estate transactions for this property/home.
The title company has a few things that it needs to check out. The first is that they make sure that all of the recordings are correct so that there may not be another person out there claiming to have ownership. They check for liens and judgments against the property as well as potential easements and encroachments. It is their job to help correct any errors to protect you and the lender.
An encroachment is when part of your house/property or the neighboring property encroaches on the other. What this means is that somehow you are extended in to the next parcel of land. his could be because of a variety of reasons and is usually easily corrected.
A common easement is like when their is a utility running through your yard that is for major use. What this means is that you need to allow access to the company/person that has the recorded easement so that they can access it.
There are other scenarios that can pop up with title work but those are the 2 most common. Most people refer to title insurance as "peace of mind" insurance. It protects you against faulty title which is important. If the title company makes a mistake it is up to them to correct it for you or to take care of any issues due to financial loss based on their error.
Now there is a lot more that I have not covered on these items but having and idea or overview is always helpful to have. Any questions on this ....ask and I will answer.
The mortgage industry is in a huge state of flux right now. Part of it is that that it is waiting to see what will or will not happen with April 1 and compensation of loan officers. Right now large banks will be looking to make more money on each loan then they did before. How the heck is that good for consumers? What is hard is that the people that are attempting to create and enforce all of these new regulations do not really understand the business at hand. They think that they are doing all these good things when all they are doing is making things worse and hurting the consumer.
Whats next, regulating what a sales person selling suits can make or telling them how they can be paid?
The main idiots that messed things up are gone. With all of the new requirements for lenders as it pertains to NMLS there are many that could not be in the business and many that opted out of doing what was needed.
The industry itself has done a good job of cleaning things up and really does not need help from Mr. Dodd or Mr. Frank.
Rates are continuing to stay strong and getting a mortgage is still Simple-Fast and Hassle Free.
That's it for today and make sure to follow me either on facebook at http://www.facebook.com/pages/Toms-Wisdom-for-Mortgages-and-other-things/101866693225282
or on twitter @omsiguy.
Have a great week!
Wednesday, March 2, 2011
Bouncey, Bouncey, Bouncey.....Rates....8
Interest rates and the bond market continue their never ending of bouncing around. Economists are all split on which they that they are headed but as long as employment is poor and gas prices continue to increase we will see consumers take more steps to the back of the line. If this is the case then we should say rates take another drop....perhaps a big one at that. Maybe Charlie Sheen has something to say on this?
You are in the home stretch on your home loan at this point. If you have a purchase you have a lot of people working for you to insure that you get to the closing table and have a smooth and successful closing.
The title company is busy making sure that the title work is clear and that there are no issues with easements or encroachments on the property as well as making sure all title transfers have been done successfully.
Your realtor is busy making sure that if the seller was to take care of anything prior to close..that it is being done and keeping you in the loop on this. They most likely are arranging a walk through for you prior to closing. This is especially important if the seller was to correct anything in the home or if your home is a new construction purchase.
And your lender is making sure that the approval is done and clean and that all parts match up successfully like the title and the appraisal.
If this were to be a refinance then you are working directly with just the lender and their game plan is still the same as it would be for a purchase.
Closing day arrives and the room is crowded on a purchase. Typically you will have the closers there for the buyer and seller (unless it is the same company) and the listing and selling agent (unless they are the same) along with the sellers and the buyers. In many cases your mortgage lender will be there as well to answer any questions that you may have in regards to the loan documents. The closing takes anywhere from 45 minutes to an hour and a half dependent on how many people are there, how many signatures are needed and how many questions are asked. A refinance closing normally should take about a half hour.
The title company closers go through all the paperwork with both sides and explain each document and collect your signatures. When the closing is complete....the money gets handed around. If the buyer needs money at closing they typically bring in a cashiers check made out to themselves and they sign it over to the title company. If the check is too much the title company cuts a check back to the consumer.
Now obviously this day is a little more complex then this but between the realtor(s)/title company and lender they should be making it a day that is Simple-Fast and Hassle Free.
More to come about the appriasal and the title company.
Have a great week!
You are in the home stretch on your home loan at this point. If you have a purchase you have a lot of people working for you to insure that you get to the closing table and have a smooth and successful closing.
The title company is busy making sure that the title work is clear and that there are no issues with easements or encroachments on the property as well as making sure all title transfers have been done successfully.
Your realtor is busy making sure that if the seller was to take care of anything prior to close..that it is being done and keeping you in the loop on this. They most likely are arranging a walk through for you prior to closing. This is especially important if the seller was to correct anything in the home or if your home is a new construction purchase.
And your lender is making sure that the approval is done and clean and that all parts match up successfully like the title and the appraisal.
If this were to be a refinance then you are working directly with just the lender and their game plan is still the same as it would be for a purchase.
Closing day arrives and the room is crowded on a purchase. Typically you will have the closers there for the buyer and seller (unless it is the same company) and the listing and selling agent (unless they are the same) along with the sellers and the buyers. In many cases your mortgage lender will be there as well to answer any questions that you may have in regards to the loan documents. The closing takes anywhere from 45 minutes to an hour and a half dependent on how many people are there, how many signatures are needed and how many questions are asked. A refinance closing normally should take about a half hour.
The title company closers go through all the paperwork with both sides and explain each document and collect your signatures. When the closing is complete....the money gets handed around. If the buyer needs money at closing they typically bring in a cashiers check made out to themselves and they sign it over to the title company. If the check is too much the title company cuts a check back to the consumer.
Now obviously this day is a little more complex then this but between the realtor(s)/title company and lender they should be making it a day that is Simple-Fast and Hassle Free.
More to come about the appriasal and the title company.
Have a great week!
Friday, February 25, 2011
Home Buying...Part 7...almost there.....
The week ran away from me and I spent 15 minutes trying to remember my password today....
The markets have been friendly to interest rates this week and the trend looks like it should continue. This should help to spring some life in to the SPRING market. Unfortunately as rates come down...gas prices are going up.
Well it is time to get the realtor's to work for and with you. Meet with them and go over what it is you are looking for in a house and let them know what price range you have been pre-approved for. With this information the realtor can start searching for homes based on your constraints. As hoes are found the realtor will set up showings and go with you to them to look at the property.
Once you have a property that you want to buy you will draft a purchase agreement with the realtor. The realtor may suggest a price to offer on the home but you can offer anything that you want and the realtor has an obligation to present it. When you present an offer you will need to put down what they call earnest money. This is usually an amount ranging from $500-$2000 for most homes. This is money that is deposited into an account with the real estate company until closing and it counted towards your down payment. Simply put this is money that is for "good intentions" of buying the home. If for some reason your loan ended up being denied you would get this money back.
When you present an offer on the home you will typically negotiate or counter. What this means is that you may offer one thing and the seller may come back with something different and you may go back and forth. Typical items that are countered are the price of the home, seller paid costs and closing dates.
Once an offer is accepted your realtor will provide the lender with a copy of the purchase agreement. At that time the lender will review the information and discuss interest rates and locking in with you. They will also collect for the appraisal and get that completed as well as ordering the title work.
The title company is also your right to choose. But typically the listing agent of the house you are buying will like to use their company. This is not unusual but you do ave the right to shop for the best deal on this and pick the company that you want. Your lender may even have some suggestions on this.
One thing that you may be doing right after you have your offer accepted; and is highly suggested, is to have a home inspection done on the home. This is different then the appraisal. The appraisal does look for some defects and such but is primarily based on value and an appraiser does not warrant the working condition of a home. The home inspection is very complete and everything is checked. What is nice about this is that you may find something wrong with the house and get the seller to take care of it. A purchase agreement is always contingent on you getting your financing and a home inspection so if it is not good, you have an out.
Well you are now in the home stretch of the process.....and headed for closing....what all happens? we will go over that in our next blog.
I have started following a person that I know that does life coaching and she has some good stuff that she puts out.....so remember that if you wait for the screams you will miss the whispers.
Have and awesome weekend and bring on March!
The markets have been friendly to interest rates this week and the trend looks like it should continue. This should help to spring some life in to the SPRING market. Unfortunately as rates come down...gas prices are going up.
Well it is time to get the realtor's to work for and with you. Meet with them and go over what it is you are looking for in a house and let them know what price range you have been pre-approved for. With this information the realtor can start searching for homes based on your constraints. As hoes are found the realtor will set up showings and go with you to them to look at the property.
Once you have a property that you want to buy you will draft a purchase agreement with the realtor. The realtor may suggest a price to offer on the home but you can offer anything that you want and the realtor has an obligation to present it. When you present an offer you will need to put down what they call earnest money. This is usually an amount ranging from $500-$2000 for most homes. This is money that is deposited into an account with the real estate company until closing and it counted towards your down payment. Simply put this is money that is for "good intentions" of buying the home. If for some reason your loan ended up being denied you would get this money back.
When you present an offer on the home you will typically negotiate or counter. What this means is that you may offer one thing and the seller may come back with something different and you may go back and forth. Typical items that are countered are the price of the home, seller paid costs and closing dates.
Once an offer is accepted your realtor will provide the lender with a copy of the purchase agreement. At that time the lender will review the information and discuss interest rates and locking in with you. They will also collect for the appraisal and get that completed as well as ordering the title work.
The title company is also your right to choose. But typically the listing agent of the house you are buying will like to use their company. This is not unusual but you do ave the right to shop for the best deal on this and pick the company that you want. Your lender may even have some suggestions on this.
One thing that you may be doing right after you have your offer accepted; and is highly suggested, is to have a home inspection done on the home. This is different then the appraisal. The appraisal does look for some defects and such but is primarily based on value and an appraiser does not warrant the working condition of a home. The home inspection is very complete and everything is checked. What is nice about this is that you may find something wrong with the house and get the seller to take care of it. A purchase agreement is always contingent on you getting your financing and a home inspection so if it is not good, you have an out.
Well you are now in the home stretch of the process.....and headed for closing....what all happens? we will go over that in our next blog.
I have started following a person that I know that does life coaching and she has some good stuff that she puts out.....so remember that if you wait for the screams you will miss the whispers.
Have and awesome weekend and bring on March!
Friday, February 18, 2011
The Fed...Home Buying and the Realtors part....Why can't winter be over?
Well the Feds came out this week and held things constant. Of course the housing market and employment market are the 2 things that they see as holding our economy back. They do see some modest growth but nothing that they are yet concerned on in regards to inflation. Until we see the labor force improve as well as the housing market.....interest rates should stay low. Home affordability is at a high right now between rates and home prices. Any realtor will tell you that you will get more bang for your buck right now then you ever will.
Speaking if Realtors....if you are going to buy a house you will be wanting one. Realtors are there as an advocate for you in the home buying process. A good realtor will listen to your home need wants and actual needs. By doing this they will hopefully be able to help find a home for you to purchase that is in your price range and meets or exceeds what you are looking for...especially in this market since a $300,000 house is now a $200,000 house.
You want to make sure that you pick your realtor just like you pick your loan officer. They should be willing to listen to you and you should feel comfortable with them Don't just pick a realtor because their name is on the home sign...pick them because you feel you can work with them.
Typical things that a realtor does for you include:
Educating you on the market
Analyze your wants and needs (said that already ..didn't I)
Steer you to homes that fit your criteria
Coordinate the work of other needed professionals
Negotiate on your behalf
Review paperwork and deadlines
Solve potential problems
Here in the Midwest this week we got treated to some really nice weather only to wake up today to the cold once again. It was like a big tease but I think that we all needed a little hint of spring to keep us going. It has been an odd winter everywhere this year even on the west coast.
And right now our neighbors to the east are having issues with collective bargaining and their governor...teachers and students walking out of classrooms......and we thought we had it bad with Jesse Ventura.
Have a great weekend.
Speaking if Realtors....if you are going to buy a house you will be wanting one. Realtors are there as an advocate for you in the home buying process. A good realtor will listen to your home need wants and actual needs. By doing this they will hopefully be able to help find a home for you to purchase that is in your price range and meets or exceeds what you are looking for...especially in this market since a $300,000 house is now a $200,000 house.
You want to make sure that you pick your realtor just like you pick your loan officer. They should be willing to listen to you and you should feel comfortable with them Don't just pick a realtor because their name is on the home sign...pick them because you feel you can work with them.
Typical things that a realtor does for you include:
Educating you on the market
Analyze your wants and needs (said that already ..didn't I)
Steer you to homes that fit your criteria
Coordinate the work of other needed professionals
Negotiate on your behalf
Review paperwork and deadlines
Solve potential problems
Here in the Midwest this week we got treated to some really nice weather only to wake up today to the cold once again. It was like a big tease but I think that we all needed a little hint of spring to keep us going. It has been an odd winter everywhere this year even on the west coast.
And right now our neighbors to the east are having issues with collective bargaining and their governor...teachers and students walking out of classrooms......and we thought we had it bad with Jesse Ventura.
Have a great weekend.
Tuesday, February 15, 2011
Home Buying continued....and The Government and all of its Reform's
If you have been following me on twitter (@omsiguy) or on Facebook (http://www.facebook.com/#!/profile.php?id=1406307637)
then you have seen all of the updates coming out pertaining to the government and everything that it is trying to do.
Their road of reform is continuing in regards to the financial and mortgage market and some of it makes sense but most of it seems like a long shot to accomplish and implement. Bottom line is our government wants to dictate what, where, when, why and how the mortgage industry does what it does. The greed that ran throughout a few years ago was not just in the mortgage industry itself but also with investors and consumers as I have previously mentioned and now they want to jump in after the fact to say how we can conduct our business.
The main problem that I have is that the majority of the people involved do not understand what getting a mortgage is like for the average person or what providing a mortgage can all involve. As a result some of the changes that they want to make could make things increasingly difficult for consumers and for mortgage lenders of all type. What we could end up with is a small monopoly of players in the mortgage business that would and could control the bulk of things including where interest rates are set.
But lets see what all gets done and what constraints are placed....perhaps we will be lending money for mortgages and calling it soiled green.
Back to Home Buying.......
Now that your file is put together and obtained all of the information that is needed as well as picking the correct loan product to go with...it is time for underwriting. The lender would if they had not already updated the file and re ran an automated underwriting decision.
Once this was done the lender would submit the file to an actual underwriter with all of the supporting information so that they can review for approval based on the specific underwriting that a lender has in place. These overlays can be basic to extreme and may cause a loan that is approved on the automated system to not be approved.
After the underwriter has reviewed the file they may have some additional questions or requirements that are needed for the loan. This is not unusual in the lease. The questions or requirements could be very basic or complex dependent on what the file looks like and the constraints of the file and the loan program The lender wants to do the loan...but they want to make sure that they have everything covered to make sure that there are no issues down the road. Every T needs to be crossed. The title, appraisal and the actual credit portion of the file will be looked at closely.
The lender has a fiduciary obligation to protect you and themselves when approving the loan. This is why, especially in the last few years, they have become so much more picky. They are running the risk of buying the loan back from the investor if the file is not perfect in every way.
Now that your loan is approved...lets go buy a house.....(or complete the refinance).
I will start to go over a little of the home buying process and other items in the next blog.
There is so much information that I could share with you in these blog entries so please be sure to ask questions if need be.
Remember if you follow me on twitter or face book I provide a lot more information in relation to the mortgage and real estate industry.
Have a great week!
then you have seen all of the updates coming out pertaining to the government and everything that it is trying to do.
Their road of reform is continuing in regards to the financial and mortgage market and some of it makes sense but most of it seems like a long shot to accomplish and implement. Bottom line is our government wants to dictate what, where, when, why and how the mortgage industry does what it does. The greed that ran throughout a few years ago was not just in the mortgage industry itself but also with investors and consumers as I have previously mentioned and now they want to jump in after the fact to say how we can conduct our business.
The main problem that I have is that the majority of the people involved do not understand what getting a mortgage is like for the average person or what providing a mortgage can all involve. As a result some of the changes that they want to make could make things increasingly difficult for consumers and for mortgage lenders of all type. What we could end up with is a small monopoly of players in the mortgage business that would and could control the bulk of things including where interest rates are set.
But lets see what all gets done and what constraints are placed....perhaps we will be lending money for mortgages and calling it soiled green.
Back to Home Buying.......
Now that your file is put together and obtained all of the information that is needed as well as picking the correct loan product to go with...it is time for underwriting. The lender would if they had not already updated the file and re ran an automated underwriting decision.
Once this was done the lender would submit the file to an actual underwriter with all of the supporting information so that they can review for approval based on the specific underwriting that a lender has in place. These overlays can be basic to extreme and may cause a loan that is approved on the automated system to not be approved.
After the underwriter has reviewed the file they may have some additional questions or requirements that are needed for the loan. This is not unusual in the lease. The questions or requirements could be very basic or complex dependent on what the file looks like and the constraints of the file and the loan program The lender wants to do the loan...but they want to make sure that they have everything covered to make sure that there are no issues down the road. Every T needs to be crossed. The title, appraisal and the actual credit portion of the file will be looked at closely.
The lender has a fiduciary obligation to protect you and themselves when approving the loan. This is why, especially in the last few years, they have become so much more picky. They are running the risk of buying the loan back from the investor if the file is not perfect in every way.
Now that your loan is approved...lets go buy a house.....(or complete the refinance).
I will start to go over a little of the home buying process and other items in the next blog.
There is so much information that I could share with you in these blog entries so please be sure to ask questions if need be.
Remember if you follow me on twitter or face book I provide a lot more information in relation to the mortgage and real estate industry.
Have a great week!
Friday, February 11, 2011
Roller Coaster week for Interest Rates..Still a great time for a Mortgage
This interest rate ride is almost like a roller coaster ride at an amusement park. And the last week of it has not been fun as interest rates have crept up. The scary part is that we have got so spoiled on such low rates that we are forgetting even in the 5 range that rates are still very good. I think that 20 of the 24 years that I have been in the business that rates have been in the 6.5-8% range so why are we being so critical of a 5ish type rate?
These interest rates like to bounce around and what they will do...none of us know for sure. They eventually will go up but when is any ones guess. Expectations are for them to take a drop again this Spring as they typically do just in time for the Spring and Summer markets.
Bottom line thought though is that if you sit around waiting for that perfect interest rate or perfect time top buy...it will go right past you.
That extra 1/8th is not worth holding out for. It is not going to make that big of a difference on your buying power or your savings on the loan. If you have the opportunity to make it happen...do so.
There are a variety of bonds and notes that are traded on Wall Street. Mortgage Backed Securities are the ones that are traded that directly effect interest rates. These are traded just like stocks and can be all over the place in a given day as they are dependent on supply and demand just like a stock. Economic data is the huge drive for rates but other things can affect them as well such as interactions in other countries and even war. Dependent on the mood of Wall Street these bonds can be very volatile in a given day.
They can swing wildly because these traders that are investing in them are dealing with millions and even billions of dollars so even a slight change can affect their return on investment greatly. Because of this it has been said that traders on Wall Street are out of touch with reality....I would have to agree as they really do not see how it affects the average person when they do what they do.
Most people do not have the ability to access how these bonds are traded so some will just watch what the 30 or 10 year treasury bonds do for direction. These bonds can give you an idea but are not a perfect gauge of what mortgage interest rates are doing.
Next week I will get back in to the home buying process and a few other things. Please remember that if you have comments, feedback or even questions....they are all welcome. I have also started using twitter in an effort to get out various information as it pertains the mortgage and real estate market....feel free to follow me @omsiguy.
Have a great Weekend....it is warming up!!!!
These interest rates like to bounce around and what they will do...none of us know for sure. They eventually will go up but when is any ones guess. Expectations are for them to take a drop again this Spring as they typically do just in time for the Spring and Summer markets.
Bottom line thought though is that if you sit around waiting for that perfect interest rate or perfect time top buy...it will go right past you.
That extra 1/8th is not worth holding out for. It is not going to make that big of a difference on your buying power or your savings on the loan. If you have the opportunity to make it happen...do so.
There are a variety of bonds and notes that are traded on Wall Street. Mortgage Backed Securities are the ones that are traded that directly effect interest rates. These are traded just like stocks and can be all over the place in a given day as they are dependent on supply and demand just like a stock. Economic data is the huge drive for rates but other things can affect them as well such as interactions in other countries and even war. Dependent on the mood of Wall Street these bonds can be very volatile in a given day.
They can swing wildly because these traders that are investing in them are dealing with millions and even billions of dollars so even a slight change can affect their return on investment greatly. Because of this it has been said that traders on Wall Street are out of touch with reality....I would have to agree as they really do not see how it affects the average person when they do what they do.
Most people do not have the ability to access how these bonds are traded so some will just watch what the 30 or 10 year treasury bonds do for direction. These bonds can give you an idea but are not a perfect gauge of what mortgage interest rates are doing.
Next week I will get back in to the home buying process and a few other things. Please remember that if you have comments, feedback or even questions....they are all welcome. I have also started using twitter in an effort to get out various information as it pertains the mortgage and real estate market....feel free to follow me @omsiguy.
Have a great Weekend....it is warming up!!!!
Tuesday, February 8, 2011
Super Bowl is over and Now it is time for Part 4 of the Process.
Well the much anticipated Super Bowl is now over and the Green Bay Packers were the big winners. Will rates make an adjustment based on which team won? That is not a belief that I share but history shows that there will be rate movement after the big game is done. Not right away but slowly after...so lets keep our fingers crossed. The economic data that has been coming out has been good for interest rates but bond traders have not reacted the way we would expect them to.
So every thing is gathered for your loan and documented. The loan officer spots check things and then so does the loan processor. Your debt to income or DTI as they call it will be spot checked to make sure it meets the constraints. This number is the amount of debt that you have plus the housing payment in relation to your income. Of course the amount of your down payment or ability of down payment will be looked at as well as this will determine what financing may be available to you. And then finally the credit score is the big one that comes in to play. The credit score has become a much larger piece of the loan approval process then it used to be as most loan types require a higher score then even a year ago. These 3 factors are the main components that are looked at as a whole in addition to the actual property itself. With these 3 all items are considered for a loan file and the underwriting takes all of them in to account. A strength in one area can help offset a weakness in another.
Now the combination of these same 3 items can decide what the best route of mortgage financing is right for you. With the big mortgage crisis fall out that we have had we are basically back to the basic loan programs that have been around for some time.
Conventional Loan Program - These are not backed by the government and typically require a larger down payment. There are still some specific programs that allow for a smaller down payment but they have some restrictions. Loans with less then 20% down will require mortgage insurance.
FHA Loan Program - These programs were originally designed as a home affordable program for first time buyers especially but is widely used by move up buyers as well. Many of the guidelines for this type of loan are much more liberal then those for conventional loan programs. These loans regardless of the initial down payment will have mortgage insurance.
VA Loan Program - A loan program designed for those that have served in our military, this loan typically requires no down payment what so ever. It does have a small mortgage insurance premium that is referred to as a funding fee.
Under these loan programs there will be options for fixed rate as well as adjustable rate loan programs. The type that works best for you will be determined on your preferences and your constraints.
Next up....Loan Approval and the basic process flow to expect.
So every thing is gathered for your loan and documented. The loan officer spots check things and then so does the loan processor. Your debt to income or DTI as they call it will be spot checked to make sure it meets the constraints. This number is the amount of debt that you have plus the housing payment in relation to your income. Of course the amount of your down payment or ability of down payment will be looked at as well as this will determine what financing may be available to you. And then finally the credit score is the big one that comes in to play. The credit score has become a much larger piece of the loan approval process then it used to be as most loan types require a higher score then even a year ago. These 3 factors are the main components that are looked at as a whole in addition to the actual property itself. With these 3 all items are considered for a loan file and the underwriting takes all of them in to account. A strength in one area can help offset a weakness in another.
Now the combination of these same 3 items can decide what the best route of mortgage financing is right for you. With the big mortgage crisis fall out that we have had we are basically back to the basic loan programs that have been around for some time.
Conventional Loan Program - These are not backed by the government and typically require a larger down payment. There are still some specific programs that allow for a smaller down payment but they have some restrictions. Loans with less then 20% down will require mortgage insurance.
FHA Loan Program - These programs were originally designed as a home affordable program for first time buyers especially but is widely used by move up buyers as well. Many of the guidelines for this type of loan are much more liberal then those for conventional loan programs. These loans regardless of the initial down payment will have mortgage insurance.
VA Loan Program - A loan program designed for those that have served in our military, this loan typically requires no down payment what so ever. It does have a small mortgage insurance premium that is referred to as a funding fee.
Under these loan programs there will be options for fixed rate as well as adjustable rate loan programs. The type that works best for you will be determined on your preferences and your constraints.
Next up....Loan Approval and the basic process flow to expect.
Friday, February 4, 2011
Riding the Roller Coaster....Interest Rates..
It has been a bad week for interest rates as they have crept up slowly all week. The good thing is that they are still low but as they creep up they start to affect home affordibility for many.
Everyone always trys to predict what rates will do and to be honest no one actually knows but they predict in a way that they can't be wrong or right....ust in the ball park. Rates are like a roller coaster swinging up and down and even breaking sideways at times. A wild and wooly ride with lots of uncertainty. The only thing that is certain is that they will change.
Here is a perfect example;
http://www.cartoonstock.com/newscartoons/cartoonists/rma/lowres/rman3169l.jpg
Right now most expect rates to stay range bound for a while until we start to see major changes in our economy. In addtion as they like to follow cycles, many do expect rates to come down after the Super Bowl as we head in to the Spring market.
When you are refinancing or buying that home try not to let greed get in the way of your decision to lock in to an interest rate. Yes you will be mad if you lock and they go down but you will be mad as well if they go up. Use good sense and do what you feel is right instead of rolling the dice.
If rates take a big drop many lenders are willing to renegotiate the interes rate with and for you. You may not get the market rate but if you get a lower rate that is very fair. It is fair because when you execute a lock in with a lender it is a binding contract and the lender has no obligation to do this for you. It is just good business to do so. Remember that if rates go up they are not going to raise your rate if you hae locked in.
And of course we have a big weekend coming up....Super Bowl Weekend.....and as I said before many feel that rates will come down after this weekend....we will see. I personally believe that they will come down towards the end of Feb.
I found this article on the web about the Home Buying Process and thought it would go well with the blog and what I am laying out for you on it.
http://www.cnbc.com//id/41411693
I will continue on with more of this next week again.
For those of us that have received the blessing of so much snow....all I can say is be safe. I was hearing reports today about roofs collapsing. They say that 2 ft of snow on a roof is equal to 38000 pounds. Watch out for the ice dams and stay warm. have a great weekend everyone.
Everyone always trys to predict what rates will do and to be honest no one actually knows but they predict in a way that they can't be wrong or right....ust in the ball park. Rates are like a roller coaster swinging up and down and even breaking sideways at times. A wild and wooly ride with lots of uncertainty. The only thing that is certain is that they will change.
Here is a perfect example;
http://www.cartoonstock.com/newscartoons/cartoonists/rma/lowres/rman3169l.jpg
Right now most expect rates to stay range bound for a while until we start to see major changes in our economy. In addtion as they like to follow cycles, many do expect rates to come down after the Super Bowl as we head in to the Spring market.
When you are refinancing or buying that home try not to let greed get in the way of your decision to lock in to an interest rate. Yes you will be mad if you lock and they go down but you will be mad as well if they go up. Use good sense and do what you feel is right instead of rolling the dice.
If rates take a big drop many lenders are willing to renegotiate the interes rate with and for you. You may not get the market rate but if you get a lower rate that is very fair. It is fair because when you execute a lock in with a lender it is a binding contract and the lender has no obligation to do this for you. It is just good business to do so. Remember that if rates go up they are not going to raise your rate if you hae locked in.
And of course we have a big weekend coming up....Super Bowl Weekend.....and as I said before many feel that rates will come down after this weekend....we will see. I personally believe that they will come down towards the end of Feb.
I found this article on the web about the Home Buying Process and thought it would go well with the blog and what I am laying out for you on it.
http://www.cnbc.com//id/41411693
I will continue on with more of this next week again.
For those of us that have received the blessing of so much snow....all I can say is be safe. I was hearing reports today about roofs collapsing. They say that 2 ft of snow on a roof is equal to 38000 pounds. Watch out for the ice dams and stay warm. have a great weekend everyone.
Wednesday, February 2, 2011
An FHA update and Home Buying Part 3
Well it is another snowy day here in the great Midwest...one that causes drivers to forget how to drive and even causes schools in rural areas to start late. None the less it is another week being started off with info that can be used.
FHA in its wisdom some time back imposed an anti flipping rule, This was meant to stop the quick inflation of home values and prices due to rapid turn times/sales of property's. This was particularly true as values were increasing at a dramatic clip. An investor would buy and sell a home sometimes without ever moving in and within an hour or so of closing on the purchase the new sale would transpire. This was one of the things that caused homes to inflate the way that they did in value.
So FHA came out with a ruling that a a new purchase agreement on a home sale could not be executed within 90 days of the closing date/recording of sale of the previous home sale.
Last year they came out and decided to help infuse the home sale market and to get the economy stimulated that they would allow flips as they call them within 90 days under certain restrictions. They were going to allow this for a specific period of time. The issue was that not all lenders wanted to do them or if they did they imposed some of their own restrictions or overlays in regards to what might be required or allowed for such a transaction.
Well FHA has decided to extend this in hopes to try and jump start the home buying market.
Here is FHA's full announcement off of their website.
http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2011/HUDNo.11-007
Now back to that home buying process.......
The Loan Approval Process consists of a few different things. Who you speak to will give you different items that they feel are important and so I will list what I see.
How much home can a person afford?
In deciding this a lender will look at the following
Credit History
Cash Requirements
Closing costs
Income
Stability of employment
Existing debt
In reviewing these items a lender will help you look what what makes the most sense for you based on your constraints and abilities as well as the constraints of the loan products that you are interested in. Together a plan of action can be derived.
How important is your credit?
More so than in the past, your credit/fico score has become most likely the biggest factor. It can not only effect if you can get a mortgage but also what type and at what interest rate.
Even if you have no credit there can still be options for you.
What are and who determines the settlement fees?
There are 3 basic sets of costs or settlement fees when buying a home.
Down Payment
Amount required based on loan program.
Closing Costs
These consist of costs from the lender, title company, third parties involved in the loan and the government. Most of these are set for the specific task while a few are actually tied to the loan amount.
Pre-Paids
These are the odd costs that are hard for many to explain. Quite simply they are costs of owning your home that you are charged at closing in advance and are placed in to an escrow account. The exception to this would be any per diem based on your closing date.
What does my mortgage payment include?
In most cases your payment will be made up of;
principleinterest
property taxes
home owners insurance
mortgage insurance
The amounts of these items will be based on your individual costs for your property.
What is an escrow account?
Property taxes and home owners insurance are generally part of your mortgage payment. Money for your taxes and insurance is deposited in to a escrow account. When the money for taxes and/or insurance comes due it is paid from this account. When you first open your mortgage account your prepaid taxes and insurance are deposited in to this account. The account is reviewed at least annually to insure that there is enough money being collected to pay your costs.
What can I expect at application?
At application information is collected from the consumer that will aid in the decision making process as well as required disclosures that are to be signed. The information is reviewed and a credit report is run. Generally at this time the loan officer will run the loan through and automated underwriting program to determine loan eligibility. Additional information may be obtained and alternate loan programs may be addressed.
Typical documentation required at application may include;
2 months asset statements
2 years W2 forms
30 days of recent paystubs
Dependent on the situation additional information may be required such as paperwork pertaining to rental properties, bankruptcies, self employment, divorces and more.
We will talk about loan approval, appraisal and title in upcoming blogs as well as various other information as it becomes news worthy.
Again I welcome all comments and questions.
FHA in its wisdom some time back imposed an anti flipping rule, This was meant to stop the quick inflation of home values and prices due to rapid turn times/sales of property's. This was particularly true as values were increasing at a dramatic clip. An investor would buy and sell a home sometimes without ever moving in and within an hour or so of closing on the purchase the new sale would transpire. This was one of the things that caused homes to inflate the way that they did in value.
So FHA came out with a ruling that a a new purchase agreement on a home sale could not be executed within 90 days of the closing date/recording of sale of the previous home sale.
Last year they came out and decided to help infuse the home sale market and to get the economy stimulated that they would allow flips as they call them within 90 days under certain restrictions. They were going to allow this for a specific period of time. The issue was that not all lenders wanted to do them or if they did they imposed some of their own restrictions or overlays in regards to what might be required or allowed for such a transaction.
Well FHA has decided to extend this in hopes to try and jump start the home buying market.
Here is FHA's full announcement off of their website.
http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2011/HUDNo.11-007
Now back to that home buying process.......
The Loan Approval Process consists of a few different things. Who you speak to will give you different items that they feel are important and so I will list what I see.
How much home can a person afford?
In deciding this a lender will look at the following
Credit History
Cash Requirements
Closing costs
Income
Stability of employment
Existing debt
In reviewing these items a lender will help you look what what makes the most sense for you based on your constraints and abilities as well as the constraints of the loan products that you are interested in. Together a plan of action can be derived.
How important is your credit?
More so than in the past, your credit/fico score has become most likely the biggest factor. It can not only effect if you can get a mortgage but also what type and at what interest rate.
Even if you have no credit there can still be options for you.
What are and who determines the settlement fees?
There are 3 basic sets of costs or settlement fees when buying a home.
Down Payment
Amount required based on loan program.
Closing Costs
These consist of costs from the lender, title company, third parties involved in the loan and the government. Most of these are set for the specific task while a few are actually tied to the loan amount.
Pre-Paids
These are the odd costs that are hard for many to explain. Quite simply they are costs of owning your home that you are charged at closing in advance and are placed in to an escrow account. The exception to this would be any per diem based on your closing date.
What does my mortgage payment include?
In most cases your payment will be made up of;
principleinterest
property taxes
home owners insurance
mortgage insurance
The amounts of these items will be based on your individual costs for your property.
What is an escrow account?
Property taxes and home owners insurance are generally part of your mortgage payment. Money for your taxes and insurance is deposited in to a escrow account. When the money for taxes and/or insurance comes due it is paid from this account. When you first open your mortgage account your prepaid taxes and insurance are deposited in to this account. The account is reviewed at least annually to insure that there is enough money being collected to pay your costs.
What can I expect at application?
At application information is collected from the consumer that will aid in the decision making process as well as required disclosures that are to be signed. The information is reviewed and a credit report is run. Generally at this time the loan officer will run the loan through and automated underwriting program to determine loan eligibility. Additional information may be obtained and alternate loan programs may be addressed.
Typical documentation required at application may include;
2 months asset statements
2 years W2 forms
30 days of recent paystubs
Dependent on the situation additional information may be required such as paperwork pertaining to rental properties, bankruptcies, self employment, divorces and more.
We will talk about loan approval, appraisal and title in upcoming blogs as well as various other information as it becomes news worthy.
Again I welcome all comments and questions.
Wednesday, January 26, 2011
Home Buying......Part Deux
There are a few components that need to be thought about when looking at buying a home. These components could effect when you want to make an offer and even when you want to close on a home.
Do you have a lease agreement or a house to sell?
If you have a lease agreement it is important to check when it ends and if there is a buy out clause. Otherwise you could get stuck with an additional payment that you had not counted on. The mortgage company could count this payment against you if you bought a home while still on a lease. Blowing it off would not be a good idea either as it could end up as a collection account against you which would affect your credit and potentially the ability to obtain further credit.
When should I get pre-approved?
There really is no right answer for this but to keep it simple...do it when you decide you want to buy a new home. This way you can sit with the loan officer and see what the constraints may or may not be. You might even be able to formulate a few different options for buying. If for some reason it is determined that now is not the time, a game plan can be designed so you can plan for it in the future.
When should I start looking?
Most agents would suggest that you be pre-approved before you start to look. This way you are looking for homes that are in your range. As for when to look, I personally would start looking about 120 days before I wanted to close and move in on a property.
When do I make an offer?
Once you find that house that you want, you and your agent will sit down and focus in on making an offer on the home. The offer will be made on your constraints and of course the price, condition and listing time of the home. Many think to low ball a home. While this periodically cal work it is not the best advice to try and take with you. With home prices as low as they are right now the amount of time a house has been on the market will be a major factor on what you and your agent will determine to offer for the home. If there are multiple offers being presented your agent may suggest a few things differently then if you were the only offer. Being pre-approved will give you an advantage. be aware that how quickly you can close or if you are asking for seller concessions can play a factor on an offer being accepted. Be aware though that seller concessions are very common at the present time.
What is Prequalification?
Prequalification is simply a rough estimate of how much home you can afford.
What is Pre-Approval?
A pre-approval involves a formal application process and provides you with a formal commitment and ease of mind on how much home you can afford and what interest rate. A pre-approval can in many circumstances take a matter of minutes. The more complex the file, the more time it might take
So many different pieces to this entire puzzle that it will take a while to get it all out there....plus I get questions sent to me and ideas for topics that I need to hit along the way. Make sure to follow or like via google or facebook so you get up to date info.
Big news today is the FOMC meeting as they announced today that they see some signs of an improving economy but will continue with the present plan that they have in plan for stimulating the economy. They are prepared to change and adjust accordingly as they see signs that deem that they need to.
Do you have a lease agreement or a house to sell?
If you have a lease agreement it is important to check when it ends and if there is a buy out clause. Otherwise you could get stuck with an additional payment that you had not counted on. The mortgage company could count this payment against you if you bought a home while still on a lease. Blowing it off would not be a good idea either as it could end up as a collection account against you which would affect your credit and potentially the ability to obtain further credit.
When should I get pre-approved?
There really is no right answer for this but to keep it simple...do it when you decide you want to buy a new home. This way you can sit with the loan officer and see what the constraints may or may not be. You might even be able to formulate a few different options for buying. If for some reason it is determined that now is not the time, a game plan can be designed so you can plan for it in the future.
When should I start looking?
Most agents would suggest that you be pre-approved before you start to look. This way you are looking for homes that are in your range. As for when to look, I personally would start looking about 120 days before I wanted to close and move in on a property.
When do I make an offer?
Once you find that house that you want, you and your agent will sit down and focus in on making an offer on the home. The offer will be made on your constraints and of course the price, condition and listing time of the home. Many think to low ball a home. While this periodically cal work it is not the best advice to try and take with you. With home prices as low as they are right now the amount of time a house has been on the market will be a major factor on what you and your agent will determine to offer for the home. If there are multiple offers being presented your agent may suggest a few things differently then if you were the only offer. Being pre-approved will give you an advantage. be aware that how quickly you can close or if you are asking for seller concessions can play a factor on an offer being accepted. Be aware though that seller concessions are very common at the present time.
What is Prequalification?
Prequalification is simply a rough estimate of how much home you can afford.
What is Pre-Approval?
A pre-approval involves a formal application process and provides you with a formal commitment and ease of mind on how much home you can afford and what interest rate. A pre-approval can in many circumstances take a matter of minutes. The more complex the file, the more time it might take
So many different pieces to this entire puzzle that it will take a while to get it all out there....plus I get questions sent to me and ideas for topics that I need to hit along the way. Make sure to follow or like via google or facebook so you get up to date info.
Big news today is the FOMC meeting as they announced today that they see some signs of an improving economy but will continue with the present plan that they have in plan for stimulating the economy. They are prepared to change and adjust accordingly as they see signs that deem that they need to.
Monday, January 24, 2011
The Process of Home Buying.....Part 1
I thought that it would be good to talk a little more about Home Buying.....especially since things have change so much. There is a lot of information to cover so I will do it over a few different blogs.
Like I said previously; anything that you have heard about buying a home or even encountered in buying a home....forget it...the rules have changed significantly and each situation is different.
The first thing I will do is just go over some FEARS and FACTS that many may have.
Fear: I can't afford to buy a home right now.
Fact: Actually you can't afford not to buy a home right now. Home prices are at lows as are interest rates making a home that much more affordable.
Fear: I should wait until the real estate market gets better.
Fact: There is never a wrong time to buy the right home. For first time buyers, those wishing to purchase a second home or real estate investors...it doesn't get much better then now. For move up buyers you may not get what you want for the home you want to sell but your dream house is now much more affordable.
Fear: I don't have the money for the down payment.
Fact: There are a variety of way to afford the costs of a new home.
Fear: I cant afford to buy my dream home.
Fact: The best way a first time buyer will get to their dream home is to buy their first home. But as I have stated with prices and rates where they are at it could be possible now.
Quick Facts
Average net worth of renters = $4000
Average net worth of home owners = $184,000
Average annual appreciation is 5-6%
A home is a pride of ownership because it is yours
A home is where your wealth can be
Rates finished last week on a good note and we are heading in to our spring market. Typically after the Super Bowl is when things pick up for our local market but it never hurts to get a head start. Make sure you know what you can do versus what you want to do. The constraint table has changed and it is important to get the correct information and pre-approved so you can buy with ease.
Again, please give me comments or email me if you have something you want addressed and of course if you follow this or like it on face book it will help get the word out for others.
Have a great week.
Like I said previously; anything that you have heard about buying a home or even encountered in buying a home....forget it...the rules have changed significantly and each situation is different.
The first thing I will do is just go over some FEARS and FACTS that many may have.
Fear: I can't afford to buy a home right now.
Fact: Actually you can't afford not to buy a home right now. Home prices are at lows as are interest rates making a home that much more affordable.
Fear: I should wait until the real estate market gets better.
Fact: There is never a wrong time to buy the right home. For first time buyers, those wishing to purchase a second home or real estate investors...it doesn't get much better then now. For move up buyers you may not get what you want for the home you want to sell but your dream house is now much more affordable.
Fear: I don't have the money for the down payment.
Fact: There are a variety of way to afford the costs of a new home.
Fear: I cant afford to buy my dream home.
Fact: The best way a first time buyer will get to their dream home is to buy their first home. But as I have stated with prices and rates where they are at it could be possible now.
Quick Facts
Average net worth of renters = $4000
Average net worth of home owners = $184,000
Average annual appreciation is 5-6%
A home is a pride of ownership because it is yours
A home is where your wealth can be
Rates finished last week on a good note and we are heading in to our spring market. Typically after the Super Bowl is when things pick up for our local market but it never hurts to get a head start. Make sure you know what you can do versus what you want to do. The constraint table has changed and it is important to get the correct information and pre-approved so you can buy with ease.
Again, please give me comments or email me if you have something you want addressed and of course if you follow this or like it on face book it will help get the word out for others.
Have a great week.
Friday, January 21, 2011
Should I stay or should I go...Short Sales
This short work week has me totally goofed up. And I believe next week is one as well..at least for the schools. Maybe we should all go back to school and get more time off. Can you imagine having all that time off like we did back then..what would we do with all that free time?
So this housing market free fall has taken its toll on many and for a few different reasons. Lets start with the consumer that got some whacky loan program and knew about what they were getting in to (yes they do exist) or the consumer that did not know what they were getting in to as well. Then of course because of the economy there are those that have lost income/jobs and the most common is just the consumer that as a result has lost equity in their home.
Most likely all are experiencing the lost equity scenario but to what extent is the difference that will be forever in effect going forward. As a result foreclosures are at a high and many are at a loss of what to do. Some people just because they have lost equity in their home have stopped making payments and allowed their homes to go into foreclosure even though they can make the payments. This is one of things that is killing us for home values. So your house has lost value....welcome to the club but you can make the payments so do so please.
Lets focus on a few choices that can be made. Your first choice if you are trying to lower your payment is to refinance. For those that are upside down in equity they may be eligible for a refinance program designed for such loans. Any loan officer can check to see if they are eligible or not. If not another option is to contact the servicer of your loan and see what you can do about a modification. It can be a real pain to do this but it could easily be worth it. I did this myself and got a rate of 2% on my mortgage. If you attempt a modification you need to stay on top of the servicer and get things in timely. It took me over a year to get this done because they have so many attempting to do so.
You really want to avoid foreclosure and with the tightening of guidelines it is even harder to buy a home after one then it was a few years back. While it is not the best choice a short sale is a much better option. With a short sale you are negotiating with the lender to sell your home for $X in hopes that they will write off the rest. It is a complicated process but is the better option. While lenders are looking at this much like a foreclosure it is not as tough on your credit and in some cases you can buy a home sooner then with a foreclosure.
It goes without saying that you want to do what makes the most sense for you and that will vary based on a persons circumstances. The best thing to do though if you are in a mortgage bind is to talk to a loan officer and see if they have any suggestions. If they are good at what they do and are professional they can usually point you down the path that will benefit you the best.
Again....feel free to pass this along....ask me questions or give me comments as I really aim to try and make this blog a useful tool for all.
Go Pack!!!!!
So this housing market free fall has taken its toll on many and for a few different reasons. Lets start with the consumer that got some whacky loan program and knew about what they were getting in to (yes they do exist) or the consumer that did not know what they were getting in to as well. Then of course because of the economy there are those that have lost income/jobs and the most common is just the consumer that as a result has lost equity in their home.
Most likely all are experiencing the lost equity scenario but to what extent is the difference that will be forever in effect going forward. As a result foreclosures are at a high and many are at a loss of what to do. Some people just because they have lost equity in their home have stopped making payments and allowed their homes to go into foreclosure even though they can make the payments. This is one of things that is killing us for home values. So your house has lost value....welcome to the club but you can make the payments so do so please.
Lets focus on a few choices that can be made. Your first choice if you are trying to lower your payment is to refinance. For those that are upside down in equity they may be eligible for a refinance program designed for such loans. Any loan officer can check to see if they are eligible or not. If not another option is to contact the servicer of your loan and see what you can do about a modification. It can be a real pain to do this but it could easily be worth it. I did this myself and got a rate of 2% on my mortgage. If you attempt a modification you need to stay on top of the servicer and get things in timely. It took me over a year to get this done because they have so many attempting to do so.
You really want to avoid foreclosure and with the tightening of guidelines it is even harder to buy a home after one then it was a few years back. While it is not the best choice a short sale is a much better option. With a short sale you are negotiating with the lender to sell your home for $X in hopes that they will write off the rest. It is a complicated process but is the better option. While lenders are looking at this much like a foreclosure it is not as tough on your credit and in some cases you can buy a home sooner then with a foreclosure.
It goes without saying that you want to do what makes the most sense for you and that will vary based on a persons circumstances. The best thing to do though if you are in a mortgage bind is to talk to a loan officer and see if they have any suggestions. If they are good at what they do and are professional they can usually point you down the path that will benefit you the best.
Again....feel free to pass this along....ask me questions or give me comments as I really aim to try and make this blog a useful tool for all.
Go Pack!!!!!
Tuesday, January 18, 2011
Expectations = Simple-Fast-Hassle Free or at least Understandable
So many of us are coming off of a 3 day weekend and getting back in to the grind of it all. Why is it always so hard to get going again after having a long weekend? It really doesn't matter because we have to get back at it and do what ever it is that we do.
I have been doing this a long time...way too long when I think about it sometimes but none the less I do something that I enjoy and that provides a service to many. When I first started in the business getting a mortgage loan was worse then getting a physical. It was more intrusive and the questions that we asked were worse then any probing one might take by a doctor. By the time we were done it seemed like we knew every intimate detail about a customer. But with the privacy act this information was and still is privileged information for the purposes of obtaining a mortgage. What was really odd is that in many cases because of what we had to do we formed friendships with many of our customers and as a result if we handled them correctly they were a great source of referrals. Much like a doctor our desk side manner dictated how the process and the end result would go and if we would deal with the customer again.
Well then of course all the new fangled loan programs started to come out and it got easier and easier for a customer to not only do a loan application but have less information required to get a loan and the process became quicker and easier then before. It was so easy in fact that now look at how many mortgage companies are gone and how many homes have lost value and how many have lost their homes.
Now I am not saying that because it got easier that this is why this all happened...it was all the funky new products that required no income or no assets and of course nothing for a down payment. This resulted in a lot of greed and this resulted in the mess. There were still many good loans made during this period of time but we lost track of financial responsibility to the consumer.
With this period of time loan officers lost their desk side manner. They forgot what to ask for and how to ask for it and explain why it was needed. The customer was in total control because the loan process was so simple.
I had always prided myself in the thought of simple-fast and hassle free for the loan process; not just for the customer but for the loan officer/company as well. It has become much harder to do this now then it ever was. But if the expectations are laid out for the customer and things can be explained then the process can still be smooth. Unfortunately many customers still remember how easy it was and have a hard time with how it has become again.
That is what it comes down to these days....expectations. A good loan officer is going to lay out what is needed in detail up front and what to expect as the process flows. The hard part is that no matter how good the loan officer is they can not 100% guarantee that what they ask for will be all that is needed or that the process will flow exactly as the expectations that they lay out. Why you might ask? Because every day or business is changing and new things are added or taken away. The secondary market and the investors that buy the loans are constantly changing the rules and lenders are constantly trying to keep up with them. Add to that each individual lenders level of risk and they may have some of their own quirks. This is not done to make the consumers life miserable but to prevent further melt down for the real estate and mortgage industry. We will all admit that sometimes what makes total sense...may not matter.
What is happening now is that when the loans are sold to the secondary market....the investors are looking for reasons to not buy the loans. 5 years ago they hardly looked at them but now it is as simple as a middle initial for a customer is missing. Mortgage companies are not looking to buy back their loans as they make their money when they sell them.
So what this comes down to...is that the mortgage industry and the loan officer are just doing their jobs...the question is how well they do it is what will make the difference of your experience. he other piece is that you have to forget how that loan process went before and how easy it was. Or for the person that never had a loan before...forget what you have heard. Like I said previously every customer/loan situation is different and what is needed can and will be different.
Again the idea that I am trying to do here is to give information to those that seek it and if you have comments or questions...please do not hesitate to toss them out there as I will read them and answer them if need be. Right now I am trying to figure out how to put an actual facebook follow button on this page or else find a new way to blog that allows me to do so. So for now I will continue to email this out and post it to my facebook page. For those of you that have a gmail account you can follow via the google follow feature.
My hope is that I am able to answer some questions and shed some light on a few things...and every once in a while I might ramble about something totally useless to all of us.
Have a great week...
I have been doing this a long time...way too long when I think about it sometimes but none the less I do something that I enjoy and that provides a service to many. When I first started in the business getting a mortgage loan was worse then getting a physical. It was more intrusive and the questions that we asked were worse then any probing one might take by a doctor. By the time we were done it seemed like we knew every intimate detail about a customer. But with the privacy act this information was and still is privileged information for the purposes of obtaining a mortgage. What was really odd is that in many cases because of what we had to do we formed friendships with many of our customers and as a result if we handled them correctly they were a great source of referrals. Much like a doctor our desk side manner dictated how the process and the end result would go and if we would deal with the customer again.
Well then of course all the new fangled loan programs started to come out and it got easier and easier for a customer to not only do a loan application but have less information required to get a loan and the process became quicker and easier then before. It was so easy in fact that now look at how many mortgage companies are gone and how many homes have lost value and how many have lost their homes.
Now I am not saying that because it got easier that this is why this all happened...it was all the funky new products that required no income or no assets and of course nothing for a down payment. This resulted in a lot of greed and this resulted in the mess. There were still many good loans made during this period of time but we lost track of financial responsibility to the consumer.
With this period of time loan officers lost their desk side manner. They forgot what to ask for and how to ask for it and explain why it was needed. The customer was in total control because the loan process was so simple.
I had always prided myself in the thought of simple-fast and hassle free for the loan process; not just for the customer but for the loan officer/company as well. It has become much harder to do this now then it ever was. But if the expectations are laid out for the customer and things can be explained then the process can still be smooth. Unfortunately many customers still remember how easy it was and have a hard time with how it has become again.
That is what it comes down to these days....expectations. A good loan officer is going to lay out what is needed in detail up front and what to expect as the process flows. The hard part is that no matter how good the loan officer is they can not 100% guarantee that what they ask for will be all that is needed or that the process will flow exactly as the expectations that they lay out. Why you might ask? Because every day or business is changing and new things are added or taken away. The secondary market and the investors that buy the loans are constantly changing the rules and lenders are constantly trying to keep up with them. Add to that each individual lenders level of risk and they may have some of their own quirks. This is not done to make the consumers life miserable but to prevent further melt down for the real estate and mortgage industry. We will all admit that sometimes what makes total sense...may not matter.
What is happening now is that when the loans are sold to the secondary market....the investors are looking for reasons to not buy the loans. 5 years ago they hardly looked at them but now it is as simple as a middle initial for a customer is missing. Mortgage companies are not looking to buy back their loans as they make their money when they sell them.
So what this comes down to...is that the mortgage industry and the loan officer are just doing their jobs...the question is how well they do it is what will make the difference of your experience. he other piece is that you have to forget how that loan process went before and how easy it was. Or for the person that never had a loan before...forget what you have heard. Like I said previously every customer/loan situation is different and what is needed can and will be different.
Again the idea that I am trying to do here is to give information to those that seek it and if you have comments or questions...please do not hesitate to toss them out there as I will read them and answer them if need be. Right now I am trying to figure out how to put an actual facebook follow button on this page or else find a new way to blog that allows me to do so. So for now I will continue to email this out and post it to my facebook page. For those of you that have a gmail account you can follow via the google follow feature.
My hope is that I am able to answer some questions and shed some light on a few things...and every once in a while I might ramble about something totally useless to all of us.
Have a great week...
Friday, January 14, 2011
Who the heck is Phyllis and why is this company calling me?
So my wife says to me..."Oh I see you are blogging like Phyllis"...who the heck is Phyllis? She then tells me she is a character on a soap opera that she watches and that the lady blogs. But what she blogs is gossip and mean things about people in the town that she lives in. Oh great so I get compared to a lady soap opera character...just wonderful. At least I am not a gossip nor am I being mean about anyone.....yet.
Did you know that whenever you inquire in to credit other companies know that you did this? Many companies buy lists to find potential customers and they do this by buying lists from various sources including credit reporting agencies.
As a result they can see your recent inquiry activity when you are looking for credit. Typically when you apply for a mortgage is the big one where companies pull your name. This is why so many times a customer will receive solicitation calls from other company's when they have inquired in to or applied for a mortgage loan and other credit.
Speaking of inquires; they are one thing that many do not think of that can hurt your credit. The more inquiries you have in to acquiring credit the harder your credit score can get hit. So when you are walking through the mall don't stop and apply for a credit card just to get some free knives.
It has been a good week for interest rates as they have held steady and even moved lower in many cases. There was a lot of economic data out this week that was friendly for interest rates. Bottom line is the economy is trying to recover but at a very slow and sluggish pace at the moment. Until we start seeing job creations out there it will be a tough haul to get things right side up again.
We have another round of playoff games this weekends and it will be interesting to see who prevails. The one game that this guy will be tuned into will be the Packer/Falcon game on Saturday night. I had to chuckle last night as a friend of mine is having a dinner party with sushi during the game. Doesn't he know it is to be wings and chips? Well lets hope the Packers win so I can start my week off right....have a great weekend everyone.
Did you know that whenever you inquire in to credit other companies know that you did this? Many companies buy lists to find potential customers and they do this by buying lists from various sources including credit reporting agencies.
As a result they can see your recent inquiry activity when you are looking for credit. Typically when you apply for a mortgage is the big one where companies pull your name. This is why so many times a customer will receive solicitation calls from other company's when they have inquired in to or applied for a mortgage loan and other credit.
Speaking of inquires; they are one thing that many do not think of that can hurt your credit. The more inquiries you have in to acquiring credit the harder your credit score can get hit. So when you are walking through the mall don't stop and apply for a credit card just to get some free knives.
It has been a good week for interest rates as they have held steady and even moved lower in many cases. There was a lot of economic data out this week that was friendly for interest rates. Bottom line is the economy is trying to recover but at a very slow and sluggish pace at the moment. Until we start seeing job creations out there it will be a tough haul to get things right side up again.
We have another round of playoff games this weekends and it will be interesting to see who prevails. The one game that this guy will be tuned into will be the Packer/Falcon game on Saturday night. I had to chuckle last night as a friend of mine is having a dinner party with sushi during the game. Doesn't he know it is to be wings and chips? Well lets hope the Packers win so I can start my week off right....have a great weekend everyone.
Tuesday, January 11, 2011
Why are my Closing Costs so high?
Well today is the big 1/11/11 and so far so good. I am not one of those that gets superstitious about things but I know that many are excited about the date thing today. What significance does it hold?
Over the years the one question that I hear over and over is "Why are my closing costs so high?" It is a very good question and actually the answer is simple.
First off remember that there are 3 main sets of numbers when buying a home; down payment, closing costs and pre-paids. Obviously when refinancing you would not have the down payment piece.
Closing costs usually are fees that are made up of and charged by the lender, state or county, title company and 3rd party services such as the appraisal. Many of the costs are set numbers and are the same regardless of how large a loan you get. So for lower loan amounts the closing costs in comparison will seem high. In Minnesota for example, the origination fee, title insurance and county mortgage registration fees are all tied to the loan amount while the rest of the costs are set numbers or for the amount of service rendered/needed. The lender only charges a small amount of these closing costs for their services.
So when we want to do a no cost or low cost loan the interest rates can be higher for the lower loan amounts because of the set fees that do not change. This typically will be the case for a loan under $180,000.
Then you have the pre-paid items which many confuse as part of the closing costs for the loan. THESE ARE NOT CLOSING COSTS. These numbers typically will consist of per diem for the number of days that you will hold the mortgage for that given month and then setting up your escrow account. Your escrow account will normally consist of taxes and insurance that you pre pay for before they are due. The numbers that are collected for this will depend on what month that you close in. The mortgage company will collect enough to make sure that when the taxes and insurance come due again that there is enough money there to pay them and even cushion the account a couple months per lending guidelines. Since every month you are paying part of your payment towards taxes or insurance you are pre-paying for the bill that will come due. Hence the word pre-paids.
It can seem pretty basic but it can also seem very confusing and overwhelming. Make sure that you have your loan officer explain it to you so you do understand. As a matter of fact anything that may not be clear to you...ask them to explain it! One of the problems that we have at our end is that we do this every day and while it all makes sense to us (most of it) it may not make sense to the customer and they have the right to ask for explanations.
Adding even more confusion to this would be the new good faith estimate that the government created a year ago. This thing is so confusing even those of us that use it have to scratch our heads. I will talk about this topic in a later blog.
There are some truly amazing things out there that many of us can not explain and a friend of mine posted this link on facebook.....wow was all I could say;
http://www.komonews.com/sports/heroes/111892554.html
Have a Great Week!
Over the years the one question that I hear over and over is "Why are my closing costs so high?" It is a very good question and actually the answer is simple.
First off remember that there are 3 main sets of numbers when buying a home; down payment, closing costs and pre-paids. Obviously when refinancing you would not have the down payment piece.
Closing costs usually are fees that are made up of and charged by the lender, state or county, title company and 3rd party services such as the appraisal. Many of the costs are set numbers and are the same regardless of how large a loan you get. So for lower loan amounts the closing costs in comparison will seem high. In Minnesota for example, the origination fee, title insurance and county mortgage registration fees are all tied to the loan amount while the rest of the costs are set numbers or for the amount of service rendered/needed. The lender only charges a small amount of these closing costs for their services.
So when we want to do a no cost or low cost loan the interest rates can be higher for the lower loan amounts because of the set fees that do not change. This typically will be the case for a loan under $180,000.
Then you have the pre-paid items which many confuse as part of the closing costs for the loan. THESE ARE NOT CLOSING COSTS. These numbers typically will consist of per diem for the number of days that you will hold the mortgage for that given month and then setting up your escrow account. Your escrow account will normally consist of taxes and insurance that you pre pay for before they are due. The numbers that are collected for this will depend on what month that you close in. The mortgage company will collect enough to make sure that when the taxes and insurance come due again that there is enough money there to pay them and even cushion the account a couple months per lending guidelines. Since every month you are paying part of your payment towards taxes or insurance you are pre-paying for the bill that will come due. Hence the word pre-paids.
It can seem pretty basic but it can also seem very confusing and overwhelming. Make sure that you have your loan officer explain it to you so you do understand. As a matter of fact anything that may not be clear to you...ask them to explain it! One of the problems that we have at our end is that we do this every day and while it all makes sense to us (most of it) it may not make sense to the customer and they have the right to ask for explanations.
Adding even more confusion to this would be the new good faith estimate that the government created a year ago. This thing is so confusing even those of us that use it have to scratch our heads. I will talk about this topic in a later blog.
There are some truly amazing things out there that many of us can not explain and a friend of mine posted this link on facebook.....wow was all I could say;
http://www.komonews.com/sports/heroes/111892554.html
Have a Great Week!
Friday, January 7, 2011
HVCC and the Big Bad Appraiser
Well the week is coming to an end with data that is friendly for rates. All though the unemployment rate dropped today there were less jobs created for the report then expected. What does this mean? Most likely people lost their unemployment benefits and fell of the reporting cycle. As we are coming out of the Xmas holiday season I would expect to see the unemployment rate go back up as seasonal employment will have dropped off.
The Home Value Code of Conduct or HVCC as it is more commonly called in the business was created to take undue influence our of the appraisal process.
Back in the day we used to have relationships with our appraisers much like we did with relator's and we would order our appraisal's through people we got along with and gave us good service.
Unfortunately some mortgage folks and appraiser's took this a little too far by having appraisals on homes that should never have happened. They over looked issues and increased/inflated values on the homes that were part of the cause for our rapid increase in home values. Add to this the abundance of multiple offers on houses and it created a valuation frenzy.
Of course the no income, no asset, no job loans were and aid to this. I just want to know who the heck came up with those stupid loan programs?
With all of this going on there were a lot of appraisers that were really busy and a lot of new ones coming in that could not establish themselves and get business.
Then the valuation and mortgage blow up comes in to play and HVCC pops up. Now the premise of this is good but unfortunately appraiser's are all gun shy now as they want nothing to come back to haunt them and they want to make sure they cam get a steady check.
The idea now is that mortgage companies have to order their appraisal's through an appraisal management company. The management company assigns the appraisals on a random basis to an appraiser to complete. The mortgage company can not have any communication with the appraiser themselves. On a purchase the appraiser knows the sales price of the home but on a refinance they have no clue what value the customer is looking for.
Once the appraisal is complete it is sent back to the management company for review and then sent to the mortgage company and the customer. Now what we are seeing is that on a purchase where the appraiser knows the sales price they are hitting the value at least 99.999999% of the time but on a refinance they are hitting the values maybe 50% of the time.
So when the value is not hit you can dispute it with data and such but do you really think that the appraiser is going to vary their original appraisal? By doing this they would be admitting they were wrong on what they did and of course that causes concern about their ability at what they do. Heck they want to keep their jobs and get the appraisal assignments as they get paid regardless of what the value comes in at. Now the unique thing here is that because of the new management companies there are many appraisers that were not very busy in the past that suddenly are. So do they want to sacrifice the income they are making? Of course not.
So what has happened in an effort to keep appraisal's and appraisers on the up and up is that the consumer is suffering in many cases because of the new process. When the market value of a home is higher then the appraisal....we need to wonder who is right and who is wrong. When the appraiser does not know the value they may be taking the road of getting the easiest comps in the area that make sense without really looking at the differences or if there are better comps out there to compare the subject property to.
Well the weekend is ahead of us and I am sure that many of you have big plans. I get to drive with my son to his college apartment and shut all the storm windows as for some reason he does not know how to do that. And if he doesn't do it the management company will charge him $50 to do it. Seriously??? He is home on break and has to do that...just shows how the world is going.
Seriously though I could really use the help with you following this or liking it on Facebook so I can get it going more.......you are influential for me and I could use your help.
Ave a super weekend and I welcome questions so don't be afraid to ask!!
The Home Value Code of Conduct or HVCC as it is more commonly called in the business was created to take undue influence our of the appraisal process.
Back in the day we used to have relationships with our appraisers much like we did with relator's and we would order our appraisal's through people we got along with and gave us good service.
Unfortunately some mortgage folks and appraiser's took this a little too far by having appraisals on homes that should never have happened. They over looked issues and increased/inflated values on the homes that were part of the cause for our rapid increase in home values. Add to this the abundance of multiple offers on houses and it created a valuation frenzy.
Of course the no income, no asset, no job loans were and aid to this. I just want to know who the heck came up with those stupid loan programs?
With all of this going on there were a lot of appraisers that were really busy and a lot of new ones coming in that could not establish themselves and get business.
Then the valuation and mortgage blow up comes in to play and HVCC pops up. Now the premise of this is good but unfortunately appraiser's are all gun shy now as they want nothing to come back to haunt them and they want to make sure they cam get a steady check.
The idea now is that mortgage companies have to order their appraisal's through an appraisal management company. The management company assigns the appraisals on a random basis to an appraiser to complete. The mortgage company can not have any communication with the appraiser themselves. On a purchase the appraiser knows the sales price of the home but on a refinance they have no clue what value the customer is looking for.
Once the appraisal is complete it is sent back to the management company for review and then sent to the mortgage company and the customer. Now what we are seeing is that on a purchase where the appraiser knows the sales price they are hitting the value at least 99.999999% of the time but on a refinance they are hitting the values maybe 50% of the time.
So when the value is not hit you can dispute it with data and such but do you really think that the appraiser is going to vary their original appraisal? By doing this they would be admitting they were wrong on what they did and of course that causes concern about their ability at what they do. Heck they want to keep their jobs and get the appraisal assignments as they get paid regardless of what the value comes in at. Now the unique thing here is that because of the new management companies there are many appraisers that were not very busy in the past that suddenly are. So do they want to sacrifice the income they are making? Of course not.
So what has happened in an effort to keep appraisal's and appraisers on the up and up is that the consumer is suffering in many cases because of the new process. When the market value of a home is higher then the appraisal....we need to wonder who is right and who is wrong. When the appraiser does not know the value they may be taking the road of getting the easiest comps in the area that make sense without really looking at the differences or if there are better comps out there to compare the subject property to.
Well the weekend is ahead of us and I am sure that many of you have big plans. I get to drive with my son to his college apartment and shut all the storm windows as for some reason he does not know how to do that. And if he doesn't do it the management company will charge him $50 to do it. Seriously??? He is home on break and has to do that...just shows how the world is going.
Seriously though I could really use the help with you following this or liking it on Facebook so I can get it going more.......you are influential for me and I could use your help.
Ave a super weekend and I welcome questions so don't be afraid to ask!!
Tuesday, January 4, 2011
So, you want to get a mortgage...
So, you want to get a mortgage and you are a first time buyer. I am sure that everyone and their brother is giving you advice on what to do and what to expect.
Perhaps you are a seasoned home owner and are looking to refinance or buy a new or different property and remember all what you went through the last time
Well.....forget anything that anyone is telling you and forget what it was like the last time as the mortgage world has changed and is continuing to change!
First off, no 2 loan situation are alike so whatever one person goes through will not be the same as someone else. This can be affected by a variety of things including but not limited to; credit, debt, income, assets, job history and more.
Next the industry has changed so much that what a consumer may have done 3 months or even 3 years ago will be different today and even more different tomorrow. The landscape of mortgage lending has and is changing continuously and where it is headed is any ones guess.
Now toss in a few new things like HVCC which is how appraisals are handled or the new disclosure requirements and you add even more confusion and frustration for everyone. The key here for the consumer is dealing with someone that will actually explain to you what to expect or what is happening as you are going through the mortgage process.
Getting a mortgage these days is like getting a physical. Hopefully your loan officer explains everything to you as to the reasoning and expectations so that there are no surprises and you come out with a clean approval.
It is very important to ask questions if you don't understand what is happening, being told to you or given to you to read. No question is a dumb question and you have the right to have the answers you need as you are paying for the service.
For those that have not seen this yet...here is a link to potentially get your new year off on the right foot;
http://education.yahoo.net/articles/find_work-life_balance.htm?kid=1C2S5
How many of you have already failed at your resolutions for the new year?
Make sure that from a fitness standpoint that you make sure you are financially fit as well. If you have a mortgage...make sure it is the right one for you.
Last night I heard my youngest daughter ask her older sister if she wanted to watch The Notebook tonight together...and the older sister said no. The funny thing is by this time next year she will probably say yes as she will have been away to college and will actually miss her little sister. Our son was the same way and I see him so much more appreciative of his sisters when he is home from college then he was before. Don't let what you can do today slip you by as you may not have that chance again.
Perhaps you are a seasoned home owner and are looking to refinance or buy a new or different property and remember all what you went through the last time
Well.....forget anything that anyone is telling you and forget what it was like the last time as the mortgage world has changed and is continuing to change!
First off, no 2 loan situation are alike so whatever one person goes through will not be the same as someone else. This can be affected by a variety of things including but not limited to; credit, debt, income, assets, job history and more.
Next the industry has changed so much that what a consumer may have done 3 months or even 3 years ago will be different today and even more different tomorrow. The landscape of mortgage lending has and is changing continuously and where it is headed is any ones guess.
Now toss in a few new things like HVCC which is how appraisals are handled or the new disclosure requirements and you add even more confusion and frustration for everyone. The key here for the consumer is dealing with someone that will actually explain to you what to expect or what is happening as you are going through the mortgage process.
Getting a mortgage these days is like getting a physical. Hopefully your loan officer explains everything to you as to the reasoning and expectations so that there are no surprises and you come out with a clean approval.
It is very important to ask questions if you don't understand what is happening, being told to you or given to you to read. No question is a dumb question and you have the right to have the answers you need as you are paying for the service.
For those that have not seen this yet...here is a link to potentially get your new year off on the right foot;
http://education.yahoo.net/articles/find_work-life_balance.htm?kid=1C2S5
How many of you have already failed at your resolutions for the new year?
Make sure that from a fitness standpoint that you make sure you are financially fit as well. If you have a mortgage...make sure it is the right one for you.
Last night I heard my youngest daughter ask her older sister if she wanted to watch The Notebook tonight together...and the older sister said no. The funny thing is by this time next year she will probably say yes as she will have been away to college and will actually miss her little sister. Our son was the same way and I see him so much more appreciative of his sisters when he is home from college then he was before. Don't let what you can do today slip you by as you may not have that chance again.
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