Here is a great story from Bloomberg that explains the influences that change mortgage rates.
As with most Bloomberg articles, it is a bit dry, but very educational… Read the rest of this entry »
The home buying process can be very frustrating these days. Difficult loan approvals, challenged buyers, desperate sellers, and changing values can all add up to a very stressful escrow.
Many clients are specifically seeking out bank owned or REO properties in hopes of finding a great ‘deal’. Although this is a great approach if you are strictly a profit and loss oriented individual, keep in mind that these types of transactions can add additional levels of frustration to the process. Read the rest of this entry »
A newer loan condition I’m seeing on virtually all loan approvals is the underwriter’s request to “source” deposits. It use to be that if there was a substantial deposit, in the $10K or greater range, into a bank account used for approval; underwriters wanted to know where those monies came from.
Unfortunately, like most lending conditions in our current market, this requirement has been taken to the extreme. Read the rest of this entry »
Over the last several weeks I’ve heard a growing segment of buyers, friends of mine, and property investors complain about how hard it is to get a loan. Many of them are literally giving up on looking for properties due to the difficulties of obtaining a mortgage.
It is true, loans are more difficult to get right now then they have been in 20 years. Yes, the amount of paper work required is over-whelming. However, as we reach what many believe to be the bottom of the market, I believe there is a lot of money to be made real estate. Read the rest of this entry »
In the overly conservative mortgage market we find ourselves, bank underwriters are somewhat fearful of giving a loan the coveted final stamp of approval. In many instances, getting the “All Clear To Close” stamp of approval is like pulling teeth.
With review appraisals, additional levels of secondary underwriting, enhanced audit requirements, and what seems like a never ending list of loan conditions… it is getting much harder to close files on time.
Here is a partial list of what you can do as an buyer and as an agent to help your file close on time… Read the rest of this entry »
During your loan process you will see many different version of the interest rate that will finally be attached to your loan.
Although all rates quotes matter, the only one that actually affects your payment is the rate at which you “lock” in at. Read the rest of this entry »
One of the agents I work with put it best today… loan advertising should be about the process, NOT the rate.
So many lenders, spearheaded by online giants like DiTech, advertise mortgages soley by their rate. However, in today’s market, that’s only part of the story. Read the rest of this entry »
It is a tricky environment we are in right now for bank appraisers.
Appraisers understand that determining property values can be both an objective or subjective process.
Of course, the true value of an asset is whatever a willing party will pay for it. However, with appraisals, it is not that simple. Read the rest of this entry »
When purchasing a new home, the bank will require you to have a home-owners insurance policy in place prior to, or concurrent with, the close of escrow.
Home owners insurance premiums can run from a few hundred dollars a year, to several thousand. It is important to shop around for insurance, consultant your insurance professional, and decide on a level of coverage well before the close of escrow. Additionally, you may want to check to see if combining your home owners and auto insurance policy makes you eligible for a discount.
Be sure to have this policy ready to go about a week prior to the close of escrow in order to prevent closing delays.
As always, if you need information on starting a new loan for the purchase or refinance of your home, contact me at TrustYourLender@gmail.com
In our current market, many existing homeowners are looking to take advantage of the lower prices that are available. Many homeowners are looking to upgrade their primary residence. Upgrades can be in the form of more square footage, better location, a higher priced home, or a more functional residence.
However, many repeat home buyers are finding it difficult to sell their existing residence and/or get approved for a new loan. Here is why… Read the rest of this entry »
With every loan approval comes a list of conditions from the underwriter that must be satisfied prior to the bank sending out the loan documents. Different lenders call these items by different names: approval conditions, doc conditions, closing conditions, or borrower conditions are all common terms.
Satisfying these conditions can be tricky and frustrating for both the loan originator (me), and the client (you). Read the rest of this entry »
Many buyers, especially first time home-owners utilize gift funds as a way to buy a home.
A parent, grandparent, wealthy uncle, or even a generous boss can all be sources of gift funds.
Gift funds can be used for various fees, closing costs, portions of your down payment, and sometimes the entire amount needed to get into a home. However, there are some very important steps to take if you are receiving gift funds for the purchase of a house. Read the rest of this entry »
The major determining factor that goes into obtaining a loan these days is your income. In the past, banks were willing to lend to clients based on their credit score and assets, this is no longer the case.
The big problem many self employed individuals run into while applying for a loan, is the fact that their tax professional does everything legally possible to get their line 37 income on their Federal tax returns down to the lowest possible number… Read the rest of this entry »
I have about $2.5 million in loan documents that need to get to escrow this week.
Several loans are refinances, but as always, purchases take priority.
Due to purchases having a more concrete timeline, and the fact that purchases are usually one of several inter-related transactions, it’s important to close these deals on time.
Unfortunately, into today’s underwriter climate, I’m finding it virtually impossible to close even purchase deals on time.
My frustration today stems from an underwriting condition which is becoming more prevalent.
Underwriters are wanting to verify deposits over $500.00 that go into accounts that are used for down payment assets.
Unfortunately, as clients prepare to spend tens or hundreds of thousands of dollars on a down payment, it’s natural that they would want to transfer money around.
“Sourcing” all these deposits and transfers are an absolute pain for both the clients and myself.
