Mortgage Info

Getting a mortgage/application process

The first step to owning a home is completing a mortgage loan application (known as the Uniform Residential Loan Application). This is a lengthy application that documents your personal information (Social Security Number, date of birth, etc.), employment information, assets and liabilities, mortgage terms and much more. You’ll work with a seasoned NMLS licensed loan officer to complete all fields, especially as they relate to the type of mortgage and terms. Once you and any co-borrowers have completed and signed the application, we will pull your credit report and score from all three major agencies to verify your credit history. We will then help you evaluate the 4 C’s to determine if you are eligible:

  1. Capacity – Current and future ability to make payments.
  2. Capital or cash reserves – Money, savings and investments you have that can be sold quickly for cash
  3. Collateral - The property that you will purchase
  4. Credit – Your history of paying bills and other debts on time.

At this point, we can provide you with a pre-approval letter that outlines how much you qualify to borrow and the specific terms of the loan. Now, you can begin looking for your new home with confidence. Once you have found the home you want to buy and have signed a Purchase Agreement for the property, you are ready to open escrow and order any inspection. The lender will then: Get an appraisal to determine the market value of the property, because it will be used as collateral for your loan. You have a legal right to get a copy of this and will want a copy for your records. Your loan will then be underwritten and prepared for a funding date!

Rates:

Rates can be viewed on multiple websites all over the internet creating much confusion. Upon speaking with one of our NMLS licensed agents we will be able to best quote you the most accurate rate and APR based on your specific need or scenario. Call today to speak to an NMLS licensed agent!

When considering mortgage financing there are many important things to know and also good helpful hints that can help eliminate approval headaches. For example keeping credit card balances low or paid off, cosigning, reserve money in the bank, knowing about needed trade lines and many other items. CALL US TODAY for a more comprehensive discussion!

Mortgage Statistics

Mortgage approvals have been steadily climbing since 2009 and are anticipated to improve as equity and liquidity re-enter the market place.

MORTGAGE NEWS

Still Work To Be Done
As the euphoria wears off in the aftermath of our stellar June employment release, we
realize that there is still work to be done in order to fully recover from the financial crisis
and deep recession. The recovery has been going on for five long-years, but it is still not
fully mature. For example, while we have recovered all jobs lost during the recession, we
have not added enough jobs to accommodate the population growth that has occurred
during and since the recession. Even at today’s increased pace of job growth, this void
will not be filled for two years or longer.

Furthermore, while the unemployment rate has dropped to 6.1% — which was the lowest
in almost six years, the “underemployment” rate still stands at 12.1%. The
underemployment rate includes those who are working part-time because they can’t find
full time jobs. The labor participation rate stands at 62.8% which is a 36-year low. It is
true that the baby boomer generation is reaching retirement age and this contributes to
the labor participation statistic. On the other hand, it is not merely how many jobs are
created — it is also what type of jobs are created. America needs more high paying full-
time jobs.

So before we celebrate the end of bad times, we must understand that there is truly
more work to accomplish. The fact that we have more room to grow is actually good
news for right now because this gives the Federal Reserve Board latitude to keep
interest rates lower for a longer period of time and not worry about the economy
overheating. The markets will cause rates to rise as we witness the start of the cycle of
better times. If this surge in job hiring spreads to the real estate markets, we will start
making up ground in a hurry instead of the snail’s pace of the past five years. If that
happens, expect the Fed to act much more quickly.

The Markets

Rates were up slightly in the past week, showing little change despite the strong
employment data.

Freddie Mac announced that for the week ending July 10, 30-year fixed rates increased
slightly to 4.15% from 4.12% the week before.

The average for 15-year loans rose to 3.24%.

Adjustables were also stable in the past week with the average for one-year
adjustables rising slightly to 2.40% and five-year adjustables increasing marginally to
2.99%.

A year ago 30-year fixed rates were at 4.51%.

Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac –“Rates on
home loans increased for the week as the labor market appears to be improving. Based
on the employment report released last week, the U.S. economy added 288,000 jobs in
June, gained 224,000 in May and increased by 304,000 in April. Also, the unemployment
rate in June fell to 6.1 percent from 6.3 percent in May.”