There is finally proof that mortgage guidelines are loosening.
The average credit score for new borrowers being approved for a mortgage has decreased to 724. This is a 21 point decrease from one year ago according to Ellie Mae.
The Homebuyer Education class at the Realtor Association of Greater Fort Myers and the Beach for the month of April will be held on April 12 due to the Easter Holiday.
To sign up click the following link: http://www.eventbrite.com/e/homebuyer-education-tickets-9443883911?aff=erelexporg
Last week mortgage rates continued their slight increase. The GDP number was revised downward to 2.4% which indicated the economy is still growing slowly which is as expected. There wasn’t much economic news released last week. This week should see more updates as it is the beginning of a new month. See current information at the Wall Street Journal Market Data page.
Last week mortgage rates moved up slightly again. The Fed released their meeting minutes which revealed that the economy is still growing slowly which is as expected. Existing Home Sales and Housing Start data revealed that the housing sector is slowing down but prices are still on the rise. Look for rates to remain fairly stagnant with slight moves each way depending on the reported data. See current information at the Wall Street Journal Market Data page.
Private Mortgage Insurance (PMI) is insurance for the lender that is required on Fannie Mae or Freddie Mac loans when the borrower has a down payment less than 20% of the purchase price.
It is also required on all FHA loans even if the borrower does have 20% for a down payment.
Many people have the impression that PMI protects the borrower but that is not true. PMI is charged either monthly or in advance as security for the lender and is one of the best reasons to have a 20% down payment.
Below is a list of easy things an individual can do to build credit or increase their credit score.
For a more detailed explanation on how to build your credit, visit this link to MSN Money.
Over the last few years many people have heard about the HARP program but detailed information on the HARP is hard to come by. The HARP program was designed for borrower’s whose loans were held by Fannie Mae (Freddie Mac also has a program with similar guidelines).
The huge benefit of HARP is that there is no appraisal required so borrower’s that have no equity or are underwater on their mortgages can still qualify.
There is no loan to value restrictions. Another benefit is that this loan can be closed very quickly.
Some important requirements for the loan are that the borrower’s must be the same as the current loan, borrower’s still must have qualifying credit, and borrower’s must show they can afford the new loan.
If you think the HARP program may be right for you please contact me today.
Last week mortgage rates moved up slightly. The new chair of the Fed, Janet Yellen, had her first testimony before congress and indicated that the economy was still moving in the right direction even though economic indicators pulled back slightly. More importantly her tone led prognosticators to believe that the Fed won’t change their course any time soon so rates will stay low. Look for rates to remain fairly stagnant with slight moves each way depending on the reported data. See current information at the Wall Street Journal Market Data page.
The recent prolonged recession had a negative effect on the majority of Americans. Many lost their jobs and were no longer able to make mortgage payments so they either worked out a short sale with the company holding their mortgage or were forced into foreclosure. Many of these same people have been able to get back on their feet and are now interested in purchasing a home again. If you are one of those people you need to know when you will be eligible to qualify for a mortgage. The most important date to know is the date the title transferred out of your name and into someone else’s. The foreclosure proceedings could have started in 2008, but if the property wasn’t transferred until 2013 that is the time the clock starts ticking for mortgage qualification. Please feel free to contact me to help find out if you are eligible for a mortgage or when you may become eligible.
There have been many changes in the mortgage business recently and one of the most important individuals in the process is the loan processor. My experience as a loan officer and mortgage loan originator has made me really appreciate our processor here at Florida Mortgage Funding Group. I can remember a few years ago when I was acting as the loan officer and processor at my previous job. At that time I felt like I was getting everything done sufficiently but I was wrong. Some of the things a good processor will do is obtain insurance quotes, order title, submit loan to underwriting, collect documentation, order surveys, order appraisal, and the list goes on. The most important thing about a good processor is that they control the time it takes to close the loan. Since the average closing time on loans at Florida Mortgage Funding Group is 30 days or less I can tell our processor is getting the job done. If you are interested in a simple mortgage process and a closing in less than 30 days please contact me.
Last week we saw mortgage interest rates drift downward. All the economic indicators are projecting slow growth with consumer confidence increasing in parallel with the growth. The unemployment rate remains at around 6.5% which is still less than full employment. Some key indicators for the real estate market are that housing starts and existing home sales are up and have been trending that way. With mortgage rates remaining low real estate investment should continue to increase. See current information at the Wall Street Journal Market Data page.
Below are five reasons you may want to choose a mortgage broker over a mortgage banker.
In conclusion, there are good mortgage brokers and mortgage bankers. Choosing an experienced mortgage broker will offer the advantages listed above.
