New Home Appraisal Nightmares For Homebuyers
I just read this very interesting article about how the new rules regarding home appraisals are having some unintended negative consequences. I know this to be true because I just went through a similar situation with one of my clients. The appraisal for the home she was buying came in much lower than expected and much lower than the home was actually worth. The result was, the deal was dead.
Read this article to learn more.
When It Comes To Getting A Mortgage, Patience Is A Virtue
If you are in the process of buying a home or refinancing your current mortgage, you may need to exercise a great deal of patience. Mortgage lenders have now become the gold standard in caution. Where once they would approve a monkey with a social security number, now you will have an easier time getting top secret clearance from the federal government. And why shouldn’t they? After all, it’s our money they are lending us, right? I am not saying that banks shouldn’t be careful and take necessary precautions before issuing mortgages. However, they have gone completely overboard in the opposite direction.When I first got into the mortgage business, long before there was any such thing as automated underwriting, there was a a standard that every one lived by. Banks, brokers and lenders would look at a mortgage application and ask: does it make sense? And if the answer was yes, then generally, the loan would be approved. If it did not, then it would be denied. Then came the housing boom. And when the question “Does it make Sense?” was asked, everyone said “Who Cares?” Now we have flopped over to the extreme opposite and when the question is asked “Does it make Sense?” The answer is “Even if it does, you probably won’t get approved anyway.” These are our banks, people. The ones we spent a trillion dollars bailing out which is why it stings a bit more.
If you need a mortgage, start early to avoid any disappointment.
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Are Housing Prices Finally Stabilizing?
Bloomberg is reporting this morning that einmonth. They take this as a sign the the economy is beginning to level off. But consumer confidence has sunk a bit and the most experts agree that we will have what is known as a jobless recovery as far as the recession is concerned.
For more info, you can read the full story here.
Wow! Mortgage Applications Climb Out Of 7 Month Low
The Mortgage Bankers Association is reporting that mortgage applications have climed out of a 7 month low last week. Is this a sign that the housing collapse is starting to stabilize? Perhaps. Maybe it is that folks are realizing that the fantastic mortgage rates we have right now will not last forever. In any event, the fact the more and more people are applying for mortgages is a good thing. Let’s hope the trend continues next week. By the way, if you haven’t heard, mortgage interest rates are great today. If you are thinking about buying or refinancing your home, now is a great time to act.
Click here to get great rates and fantastic service from Lending Tree.
Don’t Ask Me When You Should Lock Your Loan… Please!
I can’t tell you how many phone calls I get every day where people ask me if they should lock in their loan. And the answer is definitely, “I DON’T KNOW” I will never know and that is the end of that. I will never tell you. And the reason is that as sure as I am sitting here writing this, as soon as I tell you to lock or not to lock, the market is going to move in the opposite direction and you will hate me forever. The only people who really know if you should lock or not are the puppet masters on Wall Street who control everything — And they’re not talking.
If you want my opinion, here it is. Get four offers from different lenders, then negotiate your best deal.
FHA Loan Basic Requirements
FHA Loan Basic Requirements
If you are shopping for a home loan weather as a first time home buyer or a refinance, you will be faced with several options when it comes to the type of loan. This can be overwhelming. There is a great deal of information out there and it may seem difficult to make the right choice. A good place to start would be looking into an FHA mortgage. Here are the basic requirements for getting an FHA Loan.
FHA Employment Requirements
FHA requires that you have stable employment or a stable source of income for at least the past two years. There may be exceptions when FHA will approve you with less than two years of steady employment, but there must be a satisfactory reason for it. Two consecutive years of non employment income such as retirement or interest may also be used to qualify.
Credit Score Requirements For Getting an FHA Loan
To qualify for a mortgage through the FHA you must have at least decent credit. The FHA says that your minimum credit score should be above 580. The truth of the matter however is that there are practically no FHA lenders out there who will approve your mortgage with anything less than a 620 credit score. It is a good idea to understand exactly what your credit score is before you begin the application process.
Other Requirements For FHA Loan Approval
There are several other requirements that you must meet in order to obtain an FHA mortgage. The property must be appraised at and amount equal to or greater than the purchase price. An appraisal must be completed by an FHA approved appraiser. The appraisal will in all likely hood be ordered by the lender, not the borrower.
FHA Minimum Down Payment Requirements
If you are purchasing a home and plan to get an FHA loan, you must put at least 3% of the purchase price down as a down payment. If you are refinance your home you must have at least 5% equity. FHA will finance a loan to value of up to 95%. This is a pretty good deal as most other types of financing have raised the amount of equity required to obtain a mortgage. Your debt to income ratio should be fairly low as well.
Who To Call To Get An FHA Mortgage
With so much at stake, you should always seek the advice of trusted professionals. We believe that information is power and that you should obtain as much information as you can. A great place to start would be through a company such as Lending Tree. They are great because they are able to get multiple loan offers for you with one simple application.
You can then take all your offers and compare them so that you can choose the one that is best for you. You can start by filling out the simple for below and in no time you will have several banks offering your their best rate on a FHA loan or conventional mortgage.
