How Crisis Has Affected Our Business...

Good Morning,

I have had some people ask me if the current crisis that faces our country has affected my business.

The answer is "yes" so far.  I lost a loan the other day because the buyer backed out.  He was concerned about his job.

I also lost a couple of Alt Doc loans last week due to the wholesale investors temporarily halting all funds until the market stabilizes.  This was due to them having to take deep discounts upon selling their loans to the secondary market.  They lost money.

...and, the rate market is all over the place right now.

Based on all data I have read the low rates will return.  I've heard anywhere from two weeks to two months.  When they do, if you are our client we will be reaching out to you to let you know of potential opportunities to refinance.

That's it for today.

Thanks for reading!

Brett

Get Pre Approved For A Loan Here
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Take Advantage Of This No Down Program...

Good Morning!

If you are looking for a home in the outer suburbs or in a rural area make sure your realtor knows about this great USDA 100% financing program.

-Up to 100% of the Appraised Value – Total LTV of 102% –

-No Down Payment Required

-No Cash Reserve Requirement. No cash contribution requirement

-Unlimited seller concessions

-Unrestricted gifts, not necessary to document source, no seasoning

-First time home buyers allowed, but not limited to first time home buyers

-Completed Short Sales are NOT regarded as a foreclosure or negative credit. We will need a clear CAIVRS and an adequate letter of explanation

-Collections over 1 year may not need to be paid (cannot be a pattern and depends upon credit score).

-Non-traditional credit may substitute for lack of credit history

-Repair Escrow financed in loan up to $10,000 or 10% of loan

That’s it for today!

Have a good day! …and thanks for reading.

Brett

Appraisal Delays...

Good Morning!

FYI - If you have a loan in process right now appraisals are taking longer due to delays from the Corona Virus.  Keep this in mind, and discuss timelines with your loan officer.

Fannie Mae is considering the use of Exterior Only Appraisals in situations where going inside the house is impossible for the appraiser - this would be very helpful, and I hope they implement this asap.

That's it for today!

Stay safe and virus free!

Brett

Get Pre Approved For A Loan Here
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No, You Can't Get A Zero Percent Mortgage Rate...

Good Morning!

I want to attempt to clear up a common misconception...

You can't get that new 0% mortgage rate you heard about.

I'm afraid you won't be able to find that in the mortgage market.  

That's the Fed Funds Rate.  It applies to overnight loans between the biggest financial institutions in the US.  If you are one of those institutions and you need money for less than 1 day, then you are in luck.

If you're a homeowner or buyer looking for a mortgage, you are looking at MORTGAGE RATES, which are different than the Fed Funds Rate.

Mortgage rates could go lower, they could also go higher.   ...they certainly won't be going to 0%.

That's it for today!

Stay Virus free!  

Brett

Get Pre Approved For A Loan Here
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Anatomy Of A No Cost Refinance...

Good Morning!

I have people ask me about no-cost refinances.

I wanted to take a minute and tell you exactly how a no-cost refinance works.

There are two pools of funds you have to address when you refinance…

1) Closing costs.

2) Pre paids. (taxes, interest, and insurance)

A no-cost refinance will cover your closing costs. You would still be responsible for the pre-paids (although we can roll them into the loan) – because you would pay these costs whether you refinance or not.

If your current loan is escrowed you would be reimbursed the balance in your escrow account after closing. So, this would be a wash for you.

Let me give you an example of how a no-cost refinance works…

Let’s say your current rate is at 4.25%. …and let’s say normal closing costs on your refinance loan would be $4,000.

There are two ways to approach this refinance…

1) You can take the very lowest rate in the market at the time. …Let’s say it’s 3.50%. If you elect to go this route – you would either have to pay the closing costs yourself, or we could roll them into the loan. Either way, you are paying for the closing costs.

2) You could take a slightly lower rate – say 3.99%, and we (the lender) can pay the $4,000 closing costs for you.

Option 2 is a true no cost refinance. You were able to lower your rate and monthly payment for free. It didn’t cost you any money to do it!

If you would like for us to review your current situation for a no costs refinance – shoot us an email or give us a call.

That’s it for today!

Have a good day today! …and thanks for reading.

Brett

Get Pre Approved For A Loan Here
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When To Use An Owelty Loan…

Good Morning!

If you are getting a divorce, and you have to pay your spouse their share of the equity of your home don’t use a traditional Texas Home Equity loan to do it.

Use an Owelty loan to get the cash out of your home instead.

The advantage of using an Owelty Loan over a Texas Home Equity loan is that we treat them as a regular rate and term refinance (not cash out rates – which are higher).

You can also get above 80% of the value of your home with an Owelty Loan, and you can’t go above 80% with a Texas Home Equity loan.

So, if you are in this situation, or you know someone who is – and your loan officer has told you that you don’t have enough equity to cash out the ex-spouse, just tell them that you need an Owelty loan.

…or, better yet – just give us a call and we can help you!

That’s it for today!

Have a good day today! …and thanks for reading.

Brett

Get Pre Approved For A Loan Here
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Stock Market Sell Off, And Lower Rates...

Good Morning!

Stock market halted trading this morning due to profound sell off.

Mortgage rates are going down...

If you have thought about refinancing to lower payment and/or term - this is a good time to do it.

Let us know how we can help you.

Thanks!

Get Pre Approved For A Loan Here
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How To Get An FHA Mortgage When You Have Recently Been Out Of Work...

Good morning!

If you have recently been out of work, and now you are working again – here’s what you need to know to buy a house…

I wanted to go over the FHA guidelines with you on a borrower returning to work in case you or someone you know is in this situation.

There are just a few main guidelines that FHA likes to see for the borrower in this situation to be eligible for financing…

1) Current employment of at least six months.

2) Documentation of two years of employment prior to the absence. Acceptable documentation includes w-2’s, paystubs, or a written verification of employment.

3) Acceptable scenarios include an individual who took several years off to raise children but has now returned to work.

If you know someone in this situation and they want to purchase a home, have them give me a call and I’ll try to help!

That’s it for today!

Have a good day today! …and thanks for reading.

Brett

Get Pre Approved For A Loan Here
My Previous Blog