Tag Archives: Mortgage

More changes to Mortgages this month

On January 10th, new regulations went into effect for residential mortgages.

The “Qualified Mortgage” rule and the “Ability to Repay” rules are now part of the process when obtaining a mortgage.

At first glance, these appear to be major changes to how mortgages are approved but upon further review, it looks like most mortgages already comply with the new rules.  We examined our business the last few years and we estimate that 97% of our loans made would be Qualified Mortgages.  The ones that weren’t were probably commercial or hard money loans from a time when we could broker those types of loans.   As a residential mortgage banker-since August of 2011, we don’t offer commercial or hard money loans.

The Qualified Mortgage rule defines a type of mortgage that can be sold on the secondary market-Fannie Mae and other agencies. This Qualified Mortgage is one where the fees, terms, and features are defined so that in theory, agencies don’t run a high risk when they buy the loans from banks. One of the features is a lender needs to consider the borrowers ability to repay the loan.  This falls into the “DUH, we already do that” category.

Once again, it appears that much to do was made over nothing.  Life in the mortgage business goes on.

 

The life of a loan application?

I found an interesting article on MSN money titled “the secret life of your loan application.”  It was actually pretty accurate, unlike many of their  mortgage articles.  The bottom line is the application is only the beginning of the loan process.  Enjoy!

http://realestate.msn.com/the-secret-life-of-your-mortgage-application

Rates just keep dropping!

This morning I logged on checked rates, they are lower than when I left on Friday.

What this means is that someone could buy a $190,000 home in the Boise, Idaho market and have a payment under $900 per month.  I based this on a Idaho Housing Fannie Mae 30 yr fixed rate with 20 % down.  For someone without a large down payment,  they can get into that house for $5600 down and a payment of $1050 per month with taxes and insurance in the Boise, Idaho market.

 

Now rates will go up in the future, so if you are thinking of buying;now if the time.  You’ll be kicking yourself next year.

Check this out to see what bargains are out there in the Boise, Idaho market.

http://www.homepath.com/search.html?q=boise%2C+Idaho&pi=&pa=&bdi=&bhi=&x=0&y=0

 

 

Don’t make your loan tougher than it needs to be

I just closed an Idaho Mortgage loan in about 30 days that I could have had finished a week earlier.  Why did it take a week longer?  Easy, the borrower didn’t supply me with a document I had asked for multiple times.  I had to go find it from a third party and it didn’t get to me very fast.

When I start working on your loan, I will tell you what we will need to proceed and even give you a written list. 

I had asked for this document for at least 4 times while the borrower was looking at homes.  I even nudged the realtor to help me get this.  Even when the borrower got their offer accepted with a short contract closing date, they still had not gotten me that document.

When you’re getting ready to move, and have started packing up, that is not the time to start  looking.  I had to have a third party try to locate the missing document.  It was uncertain if I could even obtain that document or how long it would take.  It had the potential of killing the deal at the last moment.

In this case, the Title and Escrow company was able to get me that document in about 10 days.  It still took a lot of effort to get final underwriting approval and get the loan documents to closing before the expiration date.  This was an stressful situation that didn’t need to happen.

The bottom line is that borrowers need to get everything in to their loan officers asap.  I can work miracles, but don’t walk on water nor do I have a “magic loan wand” that can make underwriters waive loan requirements. 

As I said earlier, one of my goals as your Idaho Mortgage Guy, is to reduce the stress involved to a minimum.  Buying a home and moving is stressful enough.  Don’t bring extra stress upon yourself.

Apply Now! How to get your home loan.

Getting your loan is not as hard it might seem.  With a short application and some basic documents, we can get you approved for your home loan.

To Start, you should gather your last month’s pay stubs, the last 2 years W2 forms, the last 2 months bank statements, and any retirement account statements.

Go to my secure, online website at https://rogerhowell.com

From there, you can choose the full application or the short one.  Fill out the application, the short one only takes about 5 minutes.  Hit submit, and it shows up in my email.  I will get to work on it right away.  At this point, I will run your credit and let you know what it looks like.

You will need to get those documents to me.  Either drop them off at my office, mail them, fax them, or scan them and email to me.  I’ll put the final touches on your application and run your approval.  It is possible to have a solid pre-approval in a couple of hours if you get the documentation to me. 

If you’re buying a home, I will send you and your Realtor, a Pre-Approval Letter. 

After the pre-approval, we will prepare your loan package for your signitures.  We can email, fax, or print out the documents for your signitures. 

When you’ve signed your loan package disclosures, we will gather anything else needed for submission.  These items include: A title Report, Insurance Binder, Purchase and Sale agreement, and an Appraisal. 

When we have all of them, we submit your loan to the Underwriter who verifies that everything is in order.  If it is all in order, we get a clear to close and the loan documents will be prepared.  If there are any final underwriter’s conditions, we gather those.  We might be updating any information that is dated, such as paystubs, bank statements or maybe getting additional comments on an appraisal issue that the underwriter has questions about.  Sometimes a well and septic inspection is required, if you’re on a well or private septic system. 

Once we are cleared to close, the loan documents get prepared and sent to the title company.  When they have them worked up and printed out correctly, we schedule a closing appointment.

The closing usually takes about 45 minutes to an hour.  Once its completed, the loan records at the courthouse and the new deed to the home is in your name.  If you are refinancing, there is a federally mandated 3 day recission period.  This is in case you decide that you don’t want the new loan and you can cancel in writting.  On refinances, the loan funds and records on the 4th day after you sign.

That in a nutshell is the loan process.  If you are prepared, I can get your purchase loan done in 10 days!  Our record is 8 days.  for a refinance, add 4 days. 

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