May 1 brought about a new set of rules for ordering appraisals that apparently slowed the loan process and caused mass confusion throughout the industry.
On all conventional loans originated after May 1, your friendly loan officer will no longer be able to order your appraisal from an appraiser they may have used in the past. Instead, the loan officer now has to order the appraisal from the lender they plan on using and they in turn order it from a nationwide appraisal company (some of which are owned by the banks themselves). The process has already caused delays and additional costs for borrowers. Borrowers will now have to pay for their appraisal upfront via a credit card or check.
Although this is not in effect for government loans, many lenders are already taking the opportunity to use these systems on all loans.
Here is what you need to know about how this will affect you: Make sure that if you lock your loan, that you allow extra time for increased processing times and be ready to pay for that appraisal. Be sure that you have chosen your lender because lenders are going to be less likely to transfer appraisals now and we are being told that if you go with another lender midstream, plan on doing the appraisal again.
A wild changing mortgage world! I'm just glad I have so many lenders to use for my clients so I can wade through all the nonsense and get the job done!
Showing posts with label real estate. Show all posts
Showing posts with label real estate. Show all posts
Friday, May 22, 2009
Tuesday, March 31, 2009
Give me $8000 Please!
First time home buyers (those that do not occupy a home that they own) can now get $8000 from the federal government just for buying a home. What a deal! Even better is the fact that the IRS will allow you to amend your 2008 return to get the money now or wait until you file your 2009 return, your choice. They will treat your purchase as if you bought it on Dec.31 of 2008. This tax credit does NOT have to be paid back as long as you live in the home for the next 3 years. For the full credit, you must make no more than $75,000 annually ($150,000 = married couple) and the home purchase must close between January 1 and Novemebr 30, 2009.
You need to do a couple of things:
1) Get Preapproved for a new mortgage: START HERE
2) Buy your new home.
3) Apply for the tax credit. Here's the form: IRS FORM
Additional information can be found at http://www.giveme8000.info/
You need to do a couple of things:
1) Get Preapproved for a new mortgage: START HERE
2) Buy your new home.
3) Apply for the tax credit. Here's the form: IRS FORM
Additional information can be found at http://www.giveme8000.info/
Ch...Ch...Ch...Changes
Boy, it sure is getting interesting these days in the home lending industry. Lenders are falling by the wayside, running out of money to lend, changing guidelines fast and furious. What is a poor home buyer to do? The answer is simple:
Now more than ever before, anyone seeking a home loan needs to have a little education about what is really going on. Lending has gone back about 20 years. Back before credit scoring, no income or stated income loans, zero down, piggy back, etc., etc.
Quite simply put... You want a bank to lend you some money? You must prove you have the income to support the upcoming new payment. Have a verifiable JOB!. Have evidence that you have the ability to pay other bills and debt obligations ON TIME! Banks are no longer looking for borrowers that are not "credit-worthy". They do not want your loan subject to Risk Management. They want to lend money to people that can justifiably prove their ability to make the payment for a long term. That is the way lending was when I got into the business 23 years ago. Back to the basics.
All this mortgage mess and economic strife we hear about is the result of people getting certain types of loans that they should have never gotten in the first place. Sure, Wall Street and investors created these loans that brokers sold (funny how the poor broker gets blamed for this). They only sold a product that the Wall Street investors and Big Banks created.
Anyway, we are currently in one of the greatest home buying opportunities of all time. We have interest rates that we have not seen since around 1970, home prices that have fallen back to the latter part of 2003, and a first time buyer credit of $8000.
Yes, certain guidelines have changed. If you want to take advantage of all this, get with an experienced and knowledgeable loan officer. Have him/her pull your credit and educate you about any shoring up that it needs. (More than 70% of all reports contain errors.) Become preapproved and know what you can afford, then go out and refinance to the lower rate and better loan program or go and buy that first home!
Now more than ever before, anyone seeking a home loan needs to have a little education about what is really going on. Lending has gone back about 20 years. Back before credit scoring, no income or stated income loans, zero down, piggy back, etc., etc.
Quite simply put... You want a bank to lend you some money? You must prove you have the income to support the upcoming new payment. Have a verifiable JOB!. Have evidence that you have the ability to pay other bills and debt obligations ON TIME! Banks are no longer looking for borrowers that are not "credit-worthy". They do not want your loan subject to Risk Management. They want to lend money to people that can justifiably prove their ability to make the payment for a long term. That is the way lending was when I got into the business 23 years ago. Back to the basics.
All this mortgage mess and economic strife we hear about is the result of people getting certain types of loans that they should have never gotten in the first place. Sure, Wall Street and investors created these loans that brokers sold (funny how the poor broker gets blamed for this). They only sold a product that the Wall Street investors and Big Banks created.
Anyway, we are currently in one of the greatest home buying opportunities of all time. We have interest rates that we have not seen since around 1970, home prices that have fallen back to the latter part of 2003, and a first time buyer credit of $8000.
Yes, certain guidelines have changed. If you want to take advantage of all this, get with an experienced and knowledgeable loan officer. Have him/her pull your credit and educate you about any shoring up that it needs. (More than 70% of all reports contain errors.) Become preapproved and know what you can afford, then go out and refinance to the lower rate and better loan program or go and buy that first home!
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