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News You Can Use
“Since you’re buying a home and have applied for a mortgage, don’t finance anything else”. How many times have buyers heard that from their Realtor and lender? Now not only is it good advice – it’s a must.As of June 1st Fannie Mae’s Loan Quality Initiative is in effect on Conventional Loans. The summary page alone is nine pages. The GSE’s aim is to shift guideline compliance from their responsibility and back to the lender. The upside is this should improve Fannie Mae’s loan pool and hopefully keep borrowing costs/rates low.
This is coming about because in the words of Fannie Mae “historically, many issues related to compliance with Fannie Mae selling policies are not detected until after loans are delinquent or through the foreclosure process.” Therefore lenders will verify the loan’s information right before closing.
The major change is that there will be a final credit pull 48 hours prior to closing, yes even after the ‘final approval’ has been issued. In this new environment, lenders want to be certain the borrower’s credit profile has not changed – possibly compromising the loan’s approval or the ability to sell the loan. If the borrower has obtained new debt or increased their existing accounts, the closing will be put on hold while the file is reunderwritten.
If this happens underwriters will verify that the credit history, credit scores and Debt to Income ratios still meet guidelines. To ensure there aren’t any last minute surprises, I’d recommend buyers using their existing credit wiselyand not open any new accounts.
If you have any questions about LQI or another mortgage topic, send me an email. I’d be happy to help.
Featured Listing
Fabulous condo in gated community.
Sales Price: $172,500
MLS: 944556
Fully updated with beautiful hardwood floors, granite countertops and stainless steel appliances. Double vanities in both bathrooms. Spacious open floor plan. Close to shopping and restaurants!Have You Heard?
Have you heard that home buyers may get a closing date extension for the tax credit? Lawmakers are trying to extend the deadline to September to ensure buyers purchasing short sales or experiencing lender delays can still get the perks of the home buyer incentive. I’ll be interested to see how and when this plays out. What have you heard about it?
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News You Can Use
Chatter about home buyer incentives has sometimes sounded like an infomercial: “Home affordability near all time highs.” “Mortgage rates near all time lows.”
“But wait…there’s more”
Even though the Federal tax credit has expired, did you know that first time home buyers may be eligible for an annual tax credit up to $2000. The Mortgage Credit Certificate allows a homeowner to claim a tax credit…not a deduction… and it can prove very profitable since it may be claimed for the life of the loan.What does that mean? That a buyer with a MCC can potentially save more than they would with any ole $8000 tax credit.If you are buying a home, a MCC can give you long term savings so it’s worth checking out. If you are a Realtor, knowing about the MCC will give you market edge. You can demonstrate the benefits to your buyers and include it in your marketing to enhance interest in your listings. Have questions? Ask me.Featured Listing
Exceptional one level home in a quiet cul-de-sac.
Sales Price: $199,000
MLS: 919499New homeowners will enjoy the open floorplan and wonderful decor. The screened porch and sunroom overlook a private, fenced yard. The 0.37 acre homesite is complete with an irrigation system. In addition to a fabulous home, the community boasts a pool overlooking the lake and awesome lakeside park.
Have You Heard?
Do you know anyone that is active military personnel? Do they know that they (along with their families) can visit over 600 museums nationwide this summer for free? In an effort to show appreciation to those serving our nation, Blue Star Museums is offering this perk between Memorial Day and Labor Day. Locally, the Levine Museum for the New South and the Mint Museum of Art are participating.
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News You Can Use
Home Buyer Tax Credit: The Final Countdown. Sounds like the last movie in an action series doesn’t it?For those of us involved in the housing industry, a tax credit influenced market has been action packed. The first edition of the tax credit spurred sales and then its extension has given housing an extra boost. The most recent numbers showed a 27% boost in March to new construction sales. But what’s next?
We know foreclosures will put pressure on prices, keeping them low for some time, but the silver lining is homes will be affordable for a greater number of buyers. We also know that with the Fed’s completion of their MBS purchase program, rates are likely to rise but haven’t yet skyrocketed as previously feared. So what’s next?
If I had a crystal ball now would be the time to use it. What I can say is that here in my corner of the world interest in buying a home and putting one under contract is on the upswing and it would be nice for the momentum continue. It’s to early to say what the market will be after the tax credit expiration on Friday but in the meantime, we’ll just have to wait and see.
Featured Loan Program
FHA
Cunningham & Company offers FHA financing which allows for easier qualification, lower down payment and reduced mortgage insurance.
· Available for 1 to 4 unit properties, as well as condominiums and manufactured homes· Max loan limit for Charlotte MSA is $303,750 for a single family home· Fixed rates and ARMs available· Down payments can be as low as 3.5%· Gifts for down payments and closing costs are allowed· Will allow a home purchase 2 years after a bankruptcy and 3 years after a foreclosureHave You Heard?
Have a client that is moving to the Charlotte area? Or just know someone that is coming to visit? Charlotte’s Got a Lot is a great resource for anyone relocating here needing to get acquainted with the Queen City. The “Calendar of Events” is beneficial to anyone interested in getting involved in the community. -
News You Can Use
So here we are – November – and what shall be the fate of the First Time Homebuyer Credit? We’re not sure but it definitely has been the talk of the Fall. Senate Banking Committee Chairman Chris Dodd, D-Conn says it is as good as ‘done‘ but its passage and content remains uncertain. While we wait for the final word it looks like this month will be quite busy as all type of buyers keep buying and other clients are finding smart mortgage solutions through a refinance.
On the mortgage side of things, the Mortgage Bankers Association has convened a panel to advise on how to keep FHA a viable part of our market. At over 30% of national volume, I’d certainly say it has significant impact. FHA loans are one of my favorite loan programs because they are a solid solution for many homebuyers’ mortgage needs. If you have a question on them, just ask me – I’ve likely experienced the situation you’re facing.
Speaking of what has significant national impact, let’s talk a minute about Facebook. Maybe you’re a social media fan but like to keep your updates and info contained within a small circle. If you take quizzes or play games, consider how the third party apps on social networking sites work. Your profile might not be as private as you think.
We’ll see economic reports this week on manufacturing, employment and another FOMC meeting. The first week of the month is a busy one for market influencing reports so rate swings are possible. Have questions? I’m here for you – so give me a shout if I can help.
Featured Loan Program
Good Neighbor Next Door
Who doesn’t love a 50% off sale? What about on a house?
- Teachers, policemen/women, EMTs and firemen/women can purchase a HUD foreclosed home at 50% off the list price of the home.
- Loan is set up as a 50% loan, remaining 50% is held as a ‘silent second’ that is forgiven after 3 yrs of occupancy
- Eligible Single Family homes are located in designated revitalization areas
Have You Heard?
Have you heard we have our own deal a day site for Charlotte? Groupon.com is a new entry into Charlotte but the deals have already been impressive. Groupon focuses on local businesses and as they put it ‘each day we feature something cool to do at an unbeatable price.’ Give it a try.
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