Mortgage Tag

20 Nov 2015

Buyers Need to Understand Timing

After nearly two months of originating TRID loans under the new regulations, one thing is very clear. Buyers must understand and respect the timing and deadlines involved. Here are some key dates buyers need to keep in mind: Application Date. Submitting your mortgage application as early as possible in the home-buying process is more important than ever. Also important is gathering the documents required to apply. Closing Date. This is the date agreed upon by the buyer and seller for closing. When working with your lender, make sure your loan is clear to close (no other conditions required) at least one week before this date to ensure a smooth closing. Appraisal Received Date. The lender will let you know when your appraisal has been...
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20 May 2015

The market for jumbo loan financing

There is a lot of good news as it relates to buyers who are looking into financing a mortgage with jumbo loan terms.  So what exactly is a jumbo loan?  This is a loan in excess of FNMA/Freddie Mac’s loan limits.  In the Carolinas, this is any loan over $417,000.  This limit has not changed in the past few years.   A few years back, jumbo loans were less available than they are today. The rates/terms for jumbo financing have gotten considerably better over the last few years.  In fact, many times they are the same or better than a typical loan program. There are also more lenders offering these loan programs, so there are more choices and more options for financing. The issue...
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15 Jan 2014

The Allen Tate Family of Companies: Part 1

"Family” is a powerful word.  It usually refers to your immediate or extended collection of loved ones. These are people that help you feel secure – people you can count on. But it can also mean a non-familial group that provides support and assistance to accomplish a shared objective. That is the inclusive family I think of when I think of the “Allen Tate Family of Companies.” It’s another family you can count on. H. Allen Tate, Jr., founded the Allen Tate Company in 1957 with two goals in mind. The first was to provide an outstanding real estate experience for buyers and sellers. His second goal was to bring “one-stop-shopping with choices” to our clients. The Allen Tate Family of Companies...
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18 Nov 2013

Down payments in today’s real estate market

With interest rates settling down, the housing market is seeing continued activity from first-time homebuyers, who typically make up about 40 percent buyers. In addition to inquiries about credit requirements, the most common question from first-times is “How much down payment do I need on my first home?” There are a variety of great options that first-time homebuyers can and should consider, to get them into that first home. For buyers with a good credit score who have their own 5 percent down payment saved, the most affordable option may be a conventional loan with Private Mortgage Insurance (PMI). For this loan, you will be required to provide 2 months of bank statements to indicate that (1) you have the money...
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15 Nov 2013

Interest Rates and the Marketplace

The rate you pay in interest is a very important consideration when you are looking to purchase and finance a home. In recent months, we have seen the refinance market dry up because rates are on the move after many years of historic lows. If history repeats itself, interest rates will rise at least 2 percent from the historic low of 3.75 percent. Recently, the 30-year fixed rate was at 4.32 percent, slightly down from 4.5 percent the previous week, but still up from the historic low. This slow rise in interest rates has caused many talking heads in the national media to surmise that this will impede the housing recovery. We are not seeing evidence to support in the Carolinas. In fact,...
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2 Oct 2013

How the Government Shutdown Impacts Mortgages

As we come into Day 2 of the Federal Government shutdown, many people are asking “What is the impact on mortgage lending” and “What will happen to my loan in process?” The impact of the Federal Government shutdown on mortgage lending varies, based on the type of loan you have applied for or are considering. Here is a snapshot of what we know, based on loan type: USDA (Rural Housing Loans) – USDA offices are closed and their employees have been furloughed due to the shutdown. All USDA loans must receive a commitment by USDA prior to closing. Lenders will be unable to close USDA loans during the shutdown, unless the lender has already received the commitment from USDA. FHA Loans – FHA’s automated...
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18 Sep 2013

What NOT to Do During the Mortgage Process

As a buyer, you are justifiably filled with excitement about the largest purchase you will ever make.  But slow down … and contain your excitement just a bit. There are pitfalls you must avoid on the road to homeownership, as they may impact your loan approval. Don’t open any new credit accounts before or during the mortgage loan application process. Any new debt can negatively affect your credit score and may affect your ability to qualify for the loan you want. Buyers beware: Lenders may pull another credit report 3-5 days prior to your closing to ensure no new credit has been established. Don’t move money around in your checking/savings accounts. Most of the time, deposits into a checking/savings account must be verified by source...
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14 Aug 2013

What Happens After Application?

what's nextYou’ve applied for a mortgage loan. You’ve completed all of your paperwork and met with your Mortgage Consultant to sign your application and disclosures. So what happens now?

File review and submit – Your Mortgage Consultant will review the information you have provided to determine they have a completed file, and will then submit your loan application in a timely manner to the Operations Center for underwriting. The more complete the file, the faster the application will go through the system and be underwritten. Also, an underwriter is likely to ask for fewer conditions if the file is complete.

Appraisal time – Once your file reaches the Operations Center, your appraisal is ordered. As appraisals have become increasing regulated, they are taking longer. They now must be ordered in a random fashion or use an appraisal management company. Nationally it takes an average of 7-10 days for an appraisal to be completed.

26 Jul 2013

Know Your Credit Before You Buy

credit reportAs you begin your search for a home, one of the first – and most important – items of business is reviewing your credit report.

The credit report used for mortgage loans is a tri-merge report with information from three credit bureaus: Equifax, Experian and TransUnion. Each of these is unique to the mortgage lending process and provides slightly different information.

A lender will pull your full credit report, as well as your credit score – a number between 300 and 850 (with most scores 650-800, the higher the better) that represents your credit worthiness. Your credit score will be the middle (not average) score from the three reporting bureaus. If you are applying for a mortgage with a co-borrower, the lower of the two middle scores will be used to determine eligibility and rate.

A good first step to buying a home is to get pre-qualified. Your mortgage consultant can help you with this, which involves completing an application and pulling your credit report to determine how you handle your finances. This will determine your “middle score,” provide an indicator of your credit risk, and give you a good idea of what loan programs and rates you may be eligible for.