Tuesday, September 27, 2011

When Can An Appraisal Be Ordered?

When can the appraisal be ordered? Today's winning question by Michele Fuxan Jones of Home Real Estate addresses that issue. Michele receives a $25 Starbucks card and gets her contact information sent to the 6,600 people on our contact list. We also list her contact info on our blog (10,199 visits for the first 6 months of 2011) and on our blog at Active Rain, a real estate blog with more than 210,000 members.

Michele's contact info follows:

Michele Fuxan Jones
Jones Homes/HOME REAL ESTATE
303-995-2866
FuxanJones@realtor.com

Michele's question is: I’m noticing that appraisal deadlines are moving ever closer to the closing date. Perhaps that’s advantageous for the buyer since it gives them another “out” late in the process. But it can be particularly nerve wracking for the seller. When can an appraisal be done and still meet current guidelines?

Here's the answer: Lenders are not allowed to charge for an appraisal until after the loan application is signed, but the new regulations don't define when the appraisal can be done.

It's always best to wait until the inspection has been completed before ordering the appraisal, however, because the appraiser needs to have a copy of the final contract before completing the appraisal report. Inspection issues often result in changes to the sales contract, and if the appraisal has already been ordered before the final contract is drawn up, delays are sure to occur.

Also, some deals fall apart completely after inspection. No buyer wants to pay for an appraisal on a house they're not going to buy.

The most important thing for buyers, sellers, and their real estate agents to keep in mind is that the sales contract does not really affect the underwriting process. The sales contract is between the buyer and the seller, and does not involve the lender. Good lenders always try to get loans approved as quickly as possible, but if an agent puts an unrealistic deadline date in a contract in the hopes of speeding up the lending process, they are most likely going to have to prepare an amendment to the contract to get the date changed.

If you're ever in doubt about what dates to enter in a contract, the best thing to do is ask the lender and use the dates the lender recommends.


Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:

www.mtgsupportservices.com


By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

Friday, September 23, 2011

VA Funding Fee Goes DOWN!

VA funding fees are going DOWN! Beginning October 1, the funding fee for veterans who have less than a 5% down payment is going down from the current 2.15% of the loan amount to 1.4% of the loan amount.

For Reservists and members of the National Guard, the funding fee is going down from the current 2.4% to 1.65%.

The VA funding fee is a fee that is charged to the borrower on VA loans. It is typically included in the loan amount.

If a borrower is receiving military disability payments, they are usually exempt from the funding fee completely.

Remember, VA loans are the best deal possible for vets, active military, and members of the Reserves or National Guard. There is no down payment, no mortgage insurance, and really low interest rates. VA loans are a benefit for people who have served our country. If a lender ever tries to talk someone out of a VA loan, it's probably because that lender is not approved to sell VA loans.


Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
www.mtgsupportservices.com

Wednesday, September 14, 2011

What Credit Score Gets the Lowest Interest Rates?

What credit score do you need to get the best interest rates? Today's winning question by Marianna Schell of Cherry Creek Properties addresses that subject. Marianna receives a $25 Starbucks card and gets her contact information sent to the 6,600 people on our contact list. We also list her contact info on our blog (10,199 visits for the first 6 months of 2011) and on our blog at Active Rain, a real estate blog with more than 210,000 members.

Marianna's contact info follows:

Marianna Schell
Cherry Creek Properties
720-244-4282
mariannaschell@yahoo.com

Marianna's question is: As a buyer you can get the best interest rate if you have a good credit score. What is the lowest credit score necessary to get the best interest rate?

Here's the answer: For a conventional loan, a borrower needs a 740 credit score to get the lowest interest rates. For every 20 points lower than 740, Fannie Mae charges a fee, which in turn raises the interest rate (or lowers the credit the lender gives the borrower). The fee that Fannie Mae charges also depends on the size of the down payment, so it is impossible to say exactly how much the interest rate will go up, just by knowing the credit score.

For government loans (FHA and VA loans), everyone with a score above 660 gets the lowest interest rate. If the borrower’s score is between 640 and 660, they will pay a higher rate, and if the score is below a 640, they will pay the highest rate.

It’s also important to note that for conventional loans, the mortgage insurance payment gets higher as the scores go down. For FHA loans, mortgage insurance does not depend on credit scores. For VA loans, there is no mortgage insurance.


Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
www.mtgsupportservices.com


By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

Wednesday, September 7, 2011

Underwriting Guidelines - All in One Place

Everyone knows there are guidelines for determining whether someone gets approved for a loan, but have you ever actually seen the underwriting guidelines?

Here's a link to the Fannie Mae underwriting guidelines:
http://www.allregs.com/tpl/public/fnma_freesiteconv_tll.aspx

When the Fannie Mae Single Family page opens, click on:
  • 2011 Selling Guide
  • then on Part B, Origination Through Closing
  • and then on Subpart B3, Underwriting Borrowers
From there, you can get to all the guidelines for income, assets, credit, etc.
Every time a lender says a borrower is pre-approved for a mortgage, they are supposed to have checked all of these guidelines. Very few lenders do it. In fact, very few lenders even know where to find the guidelines, so it is impossible for them to check.

In addition to these guidelines, a mortgage broker or banker needs to check the guidelines for the individual lender they intend to use, and then, if the loan will have mortgage insurance, they need to check the mortgage insurance underwriting guidelines.

Ever have a deal fall apart? Your lender didn't read the guidelines!

Have a question about the guidelines? Call us at 303-345-3683.


Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
www.mtgsupportservices.com


By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

Thursday, September 1, 2011

FHA Loan Limits Are Going Down

The maximum loan amount for FHA loans is going DOWN beginning October 1, 2011. Here are the current limits and the new limits for the Denver area:

Metro Counties
Current limit (until the September 30, 2011) = $406,250
New limit (after October 1, 2011) = $368,000

Boulder County
Current limit (until the September 30, 2011) = $460,000
New limit (after October 1, 2011) = $402,500

Need to find the limits for a property in a different location? Here's the link to get to the web site that will give you all the loan limits in the country:
https://entp.hud.gov/idapp/html/hicostlook.cfm

Here's how to use the web site:

• From the SORTED BY menu, select County
• Select the state
• From the LIMIT TYPE menu, select FHA Forward for FHA loans
• In the LIMIT YEAR menu, make sure the correct date range is selected
• Click on SEND and you will get the loan limits

Have a question about how to find the loan limits? Call us at 303-345-3683.


Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
www.mtgsupportservices.com