Posts Tagged ‘Mortgage loan’

About the Author:  Chuck Walden (NMLS #148160) is a loan officer with GMAC Mortgage.  Email Chuck at chuck.walden@gmacm.com or call 678-725-8076. Website is www.ChuckWalden.com

The market is better.  Rates are low.  Home prices are rising.  BUT what if there was more?  Hopefully, I can answer some of those questions and give you a way to move more property, make more money, and do an even better job for your customer.

What if a lender offered to pay the majority of the closing costs?  Would this help your negotiations?  Of course it would.  What if closing costs and seller concessions weren’t an issue?  What if you could throw out the standard 3% seller concessions because it wouldn’t even matter?  Talk about a negotiating tool.  Wouldn’t it be awesome if your buyer could come to the table with just their down payment.  Do you think they would remember that and refer more business to you?

What if a lender guaranteed you would close on time?  I know you’ve heard that before.  BUT, what if they offered to pay your buyer $500 if they didn’t close on time?  Do you know of any lenders that want to pay money to a buyer.  I don’t.  Talk about motivation.

What if a lender communicated with you constantly so you never had to “wonder” what was going on with the transaction?  Have you ever had to pick up the phone and ask?  My bet would be yes.  Wouldn’t it be great if you knew when the file came out of underwriting?  Or, that the appraisal and title are in and there are no issues?  Even if there are issues, you want to know.  You need to know.

What if you felt like you had control over every transaction?  You knew your buyers or sellers were in good hands.  You knew that they were getting the best deal out there.  You knew that you were going to close on time. 

Maybe this sounds like a perfect world to you and there’s no way this could ever happen.  I challenge you to find out.  My job is to make the purchase of a home as stress free as possible.  With some of the lowest rates in the industry, guaranteed to close on time, most of the closing costs paid by the lender, and communication throughout the process……Is there anything else you, your buyer, or your seller needs?  If there is, I would love to hear about it.

If you’re interested, I would love to talk with you to show you how this is a reality.  These tools will no doubt help you to grow your business, receive more referrals, and make more money.  Feel free to email me at chuck.walden@gmacm.com or call me at 678-725-8076 anytime to discuss how I can do this for you.  It’s new to your market so be the first to take advantage and don’t delay.

This week mortgage rates have risen .25% – .375% in rate.  This is largely due to an improving economy.  If Wall Street is happy with the economy then rates rise.  Retail sales have grown and a majority of the retail sectors are showing signs of growth.

The sad part of this news is that rates have risen just before HARP 2.0 takes effect.  This program is going to allow underwater homeowners who have been making their payments the opportunity to refinance into a lower interest rate regardless of the appraised value.

If you are in the market to purchase, now is the time to buy. You will be able to afford a much larger house at a lower interest rate.  If you are planning on using HARP 2.0, you need to act now.  As mentioned in previous blog posts, higher demand means higher rates.  You need to get your paperwork in place so when HARP 2.0 is released, you will be ready..  Call for a free quote or complete an online preapproval at www.chuckwalden.com .

About the Author:  Chuck Walden (NMLS #148160) is a loan officer with Prospect Mortgage.  Email Chuck at chuck.walden@prospectmtg.com or call 678-725-8076. Website is www.ChuckWalden.com

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Currently, FHA allows the seller to pay up to 6% in closing costs.  Yes, I have at least one conversation per day saying it is only 3%.  Guess what, it’s 6%, but that is getting ready to change.  FHA has proposed to lower it from 6% to 3% and is currently accepting public comment regarding this change.  What does this mean to you?  If a buyer has very little cash in the bank, this change may kill a few deals and it will definitely force homebuyers to save their money before applying for a mortgage.  The reason behind this change is FHA is cutting back on their risk.  The more money the borrower has in the deal, the more committed they will be.  As more information comes available, I will let you know.  If you are considering making an offer, now is the time to get approved and get the process started.

About the Author:  Chuck Walden (NMLS #148160) is a loan officer with Prospect Mortgage.  Email Chuck at chuck.walden@prospectmtg.com or call 678-725-8076.  Bonus: Click to get a free, no obligation preapproval. I love to work with my readers!

 

Beginning April 1, 2012, any buyer using FHA financing will be subject to higher mortgage insurance premiums. This will include first time buyers, repeat buyers, and anyone using the FHA Streamline Refinance program.  Click Here to get preapproved before the increase occurs.

FHA loans are very attractive to potential buyers looking to put very little money down.  Also, if the buyer has some credit issues, FHA is much more lenient.  FHA loans have two parts to the mortgage insurance premium.  First, there is an upfront mortgage insurance premium(UFMIP).  Currently, that is 1% of the loan size and will be increasing to 1.75% of your loan size.  This UFMIP is added into your loan so it is not actual cash brought to closing.  However, you will be paying interest on that money for the next 30 years.  The monthly mortgage insurance premium increase will not be as drastic and will be going from 1.15% to 1.25% for any 30 year term when a buyer chooses to put down 3.5%.

FHA will make the announcement very soon regarding the changes.  If you plan on using FHA for your next home purchase, please click here 

My Mortgage Docs to be Reviewed by an ExpertAbout the Author:  Chuck Walden (NMLS #148160) is a loan officer with Prospect Mortgage.  Email Chuck at chuck.walden@prospectmtg.com or call 678-725-8076.  Bonus: Click to get a free, no obligation preapproval. I love to work with my readers!

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A month or so ago, I discussed the upcoming release of HARP 2.0.  HARP 1.0 is a mortgage program which allows homeowners to refinance up to 125% of their home’s value.  Of course, some lenders do put their own restrictions on the Loan to Value (LTV).  HARP 2.0 is “supposed” to remove the LTV cap for underwater homeowners and provide them with the much needed benefit of a refinance at a lower rate.

Even though this program was released last year, the official launch should be in mid March 2012.  Fannie Mae and Freddie Mac have been updating their systems in order to accomplish the approvals of this new program.

Call to action:  DO NOT wait until mid March to start thinking about doing this.  Go ahead and get your loan officer on the phone and get the process started now.  I’m sure you can imagine the massive influx of new refinance applications that will pour in once this has been released.  Your loan officer will give you a list of items needed in order to process and underwrite your new loan.  Make sure you’re at the top of the stack not the bottom.

To apply immediately, you can call me at 678-725-8076 or go to my website www.ChuckWalden.com and apply there.

About the Author:  Chuck Walden (NMLS #148160) is a loan officer with Prospect Mortgage.  Email Chuck at chuck.walden@prospectmtg.com or call 678-725-8076.  Bonus: Click to get a free, no obligation preapproval. I love to work with my readers!

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I spend a lot of time advising potential home buyers regarding homes in Georgia.  We discuss various things such as credit, income, assets, family, and future plans.  During these discussions, I have discovered that not only must I tell the borrowers what to do, I need to place a lot of emphasis on what not to do.

1)  Do not apply for credit cards while waiting to be approved for a mortgage.  Most lenders will “monitor” your credit profile during the process or recheck your credit report before closing.  More available credit can mean a lower credit score and a higher DTI (debt to income ratio used to determine if you qualify to buy – money coming in verses money going out).  This can also delay a closing because the future homeowner may have to provide a statement from the account to the underwriter.

2)  Do not be late on any payment.  If you are late on a payment prior to closing, your score will drop.  I saw one this morning drop from 679 to 582.  Crazy! An underwriter will not approve your home loan if you cannot show the ability to pay a bill on time.

3)  Do not quit your job.  If anything changes regarding your employment, tell your loan officer.  One of the last things a lender does prior to closing is verify employment.  No job.  No loan.  This has actually happened.

4)  Do not accept cash gifts and deposit them into your bank account.  Cash gifts are very difficult,if not impossible to prove.  If you are receiving a gift in order to make the down payment at closing, talk to your loan officer first.  He or she can make your life a lot easier with just a little guidance and direction.

I know that the four items above may seem simple, but what if the buyer does not know and goes down that path?  It is painful to have worked so hard to buy the home of your dreams only to have it taken away due to one bad decision.  I work for one of the best mortgage companies in the country and I help people get a home loan every day.  But it is also my job to inform inform inform.

About the Author:  Chuck Walden (NMLS #148160) is a loan officer with Prospect Mortgage.  Email Chuck at chuck.walden@prospectmtg.com or call 678-725-8076.  Bonus:  Click to get a free, no obligation preapproval. I love to work with my readers!

I speak to a lot of potential home buyers every day.  One question that I get is, why do I need to be preapproved?  This preapproval arms you with a legitimate document, that tells the seller two things.  First, it tells them that you are serious.  Second, it tells the seller that you are qualified to buy the home you are making an offer on.  Very few, if any, sellers will accept an offer without a preapproval letter.  Also, if an agent is driving a potential buyer around without being preapproved first, they are wasting their time, effort, and money. I am amazed when a buyer tells me that they have already been preapproved with another lender, only to find out later that the other lender never even checked their credit.  How can a lender issue a preapproval letter without checking credit?  The answer is you cannot.  If you have been preapproved and have a “letter” in your hands and the lender did not check your credit, income, or assets, you’re only walking around with a piece of paper.  You could be setting yourself up for failure later on down the road.  You found your dream home!  You submit your offer and it is accepted!  You turn in your paperwork to your lender and you don’t qualify.  Wow, what a let down that would be.

 

The preapproval process is something that should be taken very seriously. I imagine that you would rather hear that you will qualify in 60 days, rather than get denied right now.  It is important to work with a lender or loan officer that takes this process seriously.  They will (or should) ask you for the following when preapproving you:

 

1)  30 – 60 days of paystubs

 

2)  2 years of tax returns

 

3)  2 months of bank statements in order to show you have the cash to put down on the home you are buying

 

The loan officer will also ask for your social security number, full name, and current address.  This info will allow them to see if you actually  qualify for the home you would like to buy.  It will also allow them to alert you of any potential red flags.

 

If you are a potential homebuyer, please take the time to do this.  If you are an agent, please make sure that your buyers do this.  Underwriting guidelines are tight.  Let an experienced loan officer

 

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help you and your customers navigate this process.