Tuesday, February 05 2013
Sometimes, even after your mortgage application has been approved, you have to scratch your head at apparent non-sequiturs that attach to the process (for instance, when a loan is made contingent upon your repaying an ultra-low-interest credit account).
Even more so if your perfectly dandy financial situation results in a turndown. How could this happen? The answer usually makes perfect sense…but only if you understand that bankers and mortgage brokers are bound by policies and procedures that apply to everyone currently buying homes in EvansvilleKnowing the rules ahead of time can influence how readily mortgage applications are approved. Some guidelines:
Forget adding "mattress money."
Your bank account gets a thorough going-over, of course. If you have recently deposited a bundle of cash with no apparent source, it looks as if you are artificially hiking up the balance (perhaps with borrowed funds). Too bad about that garage sale: if the cash has not been on deposit for at least 90 days, it can be considered ‘unseasoned’ – likely to raise questions.
Disclose all pertinent info.
Many credit applicants in the process of buying homes assume the credit investigation will be limited to the information disclosed on the application. Not! Underwriters are trained investigators always on the lookout for anything that looks like fraud. Buying homes involves sums that deserve serious investigation; even relatively minor oversights are likely to be discovered. Answer: supply all the information asked for.
Avoid employment hopscotch.
Those who suddenly change jobs while in the process of buying homes in Evansville raise the odds of their application being affected. This is especially true of wholesale shifts in careers or industries. Even for otherwise praiseworthy professional moves, an employment outlook that appears unpredictable isn’t helpful.
Bottom line: those who will be buying homes need to prepare knowledgably for the policies that govern mortgage approval. If you are among those who will be buying homes in the Evansville area this winter, call me today -- I can put you in touch with a mortgage broker to start the pre-approval process! You can reach me on my cell phone at 812-499-9234. Friday, January 18 2013
Your home buyers have gotten approved for a mortgage and now they’re just waiting to make it to the closing table. Make sure they don’t throw their loan approval into jeopardy by making one of these common mistakes:
Source: “How to Keep Your Mortgage Approval Approved,” Realty Times (Jan. 14, 2013) Tuesday, May 01 2012
For credit-worthy Evansville homebuyers, getting a mortgage can be a walk in the park…or a nerve-wracking nightmare. The difference usually has to do with those ubiquitous Credit Reports – the ones TV commercials want to send you for free (at which point they will try to sell you not-so-free monthly services). Anyone who has ever been stalled just as they reached the final stages of getting a mortgage or refinancing knows that getting mad doesn’t solve anything. But avoiding a last-minute problem is easy to do if you plan ahead. At least six months ahead. We like to assume that outfits as important as the reporting agencies know what they are doing, and in fact, they do. But they must start with the right information, which is where we come in. Nobody ever told us this in school, but it’s ultimately our responsibility to see that our credit reports are accurate.
Whether or not you think you will getting a mortgage or refi soon, here are some plan-ahead, proactive steps everyone can and should take. Monitor for these common stumbling blocks:
1. Inaccurate information on the credit report. The first step is to read your reports. It is very important that you request those free copies of your credit reports and dispute any negative items that seem to have appeared for no reason. All three credit bureaus are required to remove inaccurate information, and they will do so, but only after you tell them to. My experience is that the agencies can be quick to respond…or as slow as molasses in January. In Antarctica. The only sure way to set things right is to allow them time to correct or to ask for more information.
2. Carrying too much revolving debt adds an unnecessary obstacle for getting a mortgage. A large part of a credit score is based on your revolving debt ratios. Revolving debt should be kept at or under 20%. If you are carrying more revolving debt than that, take this lead-time to whittle it down to a more loan-attracting ratio.
3. Taking on new debt less than six months before getting a mortgage: bad idea. If you are planning on getting a mortgage or refinance, avoid taking on other new debt in the six months leading up to your application. This solves any question over whether you will be able to pay the new debt as well as the mortgage amount.
Time spent planning ahead and getting your financing in order will be well worth it once you find the home of your dreams and are ready to write an offer. Questions? Contact me anytime you wish to discuss pre-qualifying for a Evansville home. You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com Friday, August 19 2011
More homeowners prefer to pay off their mortgages sooner as interest rates have stayed near rock-bottom and weak labor conditions have caused them to reduce their debt loads, a survey showed on Monday.
The current trend in refinancing into shorter-loan terms is a stark contrast to the one during the height of the housing boom, when families were taking out bigger mortgages against the rising values of their homes. Of those homeowners who refinanced a 30-year fixed-rate mortgage during the second quarter, 37 percent moved into a 15-year or 20-year fixed-rate loan. This is the highest since the third quarter of 2003, mortgage finance agency Freddie Mac (FMCC.OB) said. In the second quarter, interest on the 30-year mortgage averaged 4.65 percent, compared with a 3.84 percent average on 15-year mortgages, the company said. "It's no wonder we continue to see strong refinance activity into fixed-rate loans," Freddie Mac Chief Economist Frank Nothaft said in a statement. Refinancing has comprised the bulk of U.S. mortgage activity since the housing bust that led to the 2007-2009 global financial crisis. During the second quarter, the refinance share of mortgage applications, versus the share of applications for loans to buy a home, averaged 70 percent, Freddie Mac said. Source: http://old.news.yahoo.com/s/nm/20110815/bs_nm/us_usa_mortgages_freddiemac Thursday, February 03 2011
Interest rates on home loans may drop further thanks to recent speculation that the Federal Reserve Board will inject about $600 billion into the consumer credit industry, according to a report in the Washington Post. Fed Chairman Ben Bernanke recently said this move could create mortgage rates that "will make housing more affordable and allow more homeowners to refinance."
However, other financial experts are careful to point out that this decline may not be as steep as some might expect, the report said. Amy Crews Cutts, deputy chief economist at Freddie Mac, said rates shouldn't be affected by the cash injection too greatly, noting, "Four and an eighth is far more likely than 4 percent." The reason for this, Cutts told the newspaper, is that the Fed would be purchasing Treasury bonds rather than mortgage-backed securities. However, another dip in home loan rates would likely spur even greater levels of refinance, which already make up about 80 percent of the mortgage market. Meanwhile, the low mortgage rates haven't helped to boost sales of existing homes. In fact, the most recent statistics from the National Association of Realtors showed that this type of purchase declined more than 25 percent in the third quarter. Thursday, July 29 2010
The number of mortgage applications to purchase homes rose 2 percent last week compared to the previous week on an adjusted basis, according to the Mortgage Bankers Association weekly survey.
On an unadjusted basis, the index rose 2.4 percent, but remained 34.3 percent lower than it was a year ago. The overall mortgage volume, including refinancings, declined 4.4 percent from the prior week. This was the highest weekly number of purchase applications since the end of June, and the second week the number of applications has risen, even though mortgage rates increased slightly:
Monday, May 31 2010
The near-record low mortgage rates seen during the past few weeks may not be around much longer. Friday, January 15 2010
Mortgage application volume increased 14.3 percent last week compared to the previous week on a seasonally adjusted basis, according to the Mortgage Bankers Association.
On an unadjusted basis applications rose 66 percent. The increase reflects a shortened week due to the New Year’s holiday. Most of the increase was in refinances, which rose 73.9 percent from the previous week’s unadjusted index. The unadjusted purchase index rose 48.8 percent compared to the previous week and was down 24.9 percent compared to the same week a year ago. Interest rates slipped:
Source: Mortgage Bankers Association (01/13/2010) http://www.realtor.org/RMODaily.nsf/pages/News2010011302?OpenDocument | |||||||
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