Danny Salas

Archive for the 'Loan Qualification' Category

Operation Mammogram

Free Mammograms!

1 Out of 8 Women will develop Breast Cancer which is why on October 23 (Saturday), North State Imaging will be offering free Mammograms from 8 AM to 12 PM.

Access Real Estate Lending proudly sponsors the Swing Fore A Cure Foundation who is putting on this event!

Early detection can save lives!

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The Housing Market, The Economy, & Possible Future Solutions…

Home Sales Rise 4.3% in August

Interest Rates are Low helping Mortgages

The housing market started to regain stability in the past two months, after months of sales being in the toilet. Mortgage rates are at extreme lows, which are helping, although unemployment is predicted to remain high in 2011 (above 9% for the third year in a row – the last time this occurred was 1939 to 1941) which will aid in the low demand for houses.

In July, The National Association of Realtors’ index of pending home resale had a 4.5% gain in July and a 4.3% gain in August. However, a year ago these rates were up 18.4%. In the same month (August), three of four regions had gains in contract signings. The South had a 6.7% gain, the West had a 6.4% gain, and the Midwest had a 2.1% gain.

Previously owned homes make up around 90% of the market and in August these sales rose to a rate of 4.13 million.

West Chester Moody’s Analytics Senior economist Aaron Smith described the situation as a stabilizing improvement with “a long way to go”.  He believes the labor market is going to be the most important factor, which is identical to what other experts are forecasting.

Economy

Unemployment impairs home sales as well as aids housing foreclosures. In August foreclosures hit a record high for the third time within five months. Predictions are that if this problem of joblessness is not dealt with, no market can fully flourish.

Because of this, policy makers of the Federal Reserve may try to counteract with more stimulus.

Progression and prevention of deflation in the economy will be a matter of fiscal relief, believes William Dudley, the President of the Fed Bank of New York.

 

Very Low Mortgage Rates

Freddie Mac has announced that ending September, a 30-year fixed mortgage average rate had been recorded at 4.32%, a super low. Freddie’s Chief Economist, Lawrence Yun, stated, “Attractive affordability conditions from very low mortgage interest rates appear to be bringing buyers back to the market”.

Homebuyer tax credit with a maximum of $8,000 were required to be signed on April 30 and closed by September 30 so many closed near the beginning of summer.

Solutions Ahead

This horrible economic year is ending on a steady path. However this path is at a low incline.  A huge aid to help reclaim the housing market’s health will be when unemployment finally decreases. Until then, it will only continue to get better at a slow rate.

Another idea for growth from William Dudley (Fed Bank of New York) is that sustaining home and stock values, generating mortgages for home buying and refinancing to be less expensive, and decreasing the cost of assets for business can ultimately help our economic situation by lowering long-term interest rates.  This can be done by refreshing purchases of Treasuries or mortgage debt.

 

 

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Introducing CreditCOMPARE

Freddie Mac and Fannie Mae requiring credit to be pulled prior to closing loans…

Instantly Detect Changes Between Borrower’s Origination and Pre-Closing Credit Reports By Utilizing CreditCOMPARE.

Credit bureaus are now offering CreditCompare. Compare two reports to comply with FannieMae’s LQI requirement to identify undisclosed liabilities. Identifies the variances, so you don’t have to!

CreditCOMPARE  Identifies Changes In: 

• Borrowers Identification Information

•  Credit Scores (if ordered on the Pre-closing Report)

•  Balances, Tradelines, Payments and Public Records

•  NEW Tradelines and Inquiries

•  Credit Utilization

 

      

 

 

 

 

 

 

 

 

  

 

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FHA Mortgage Insurance Premium

New FHA Announcement

Beginning October 4, 2010, FHA is requiring FHA Mortgage Insurance Premiums on all loans with case numbers assigned on or after this date, per HUD Mortgagee Letter 2010-28.

The Changes

FHA will decrease the Up Front Mortgage Insurance Premium (UFMIP) from 2.25 to 1.00 percent while ALSO increasing the monthly Mortgage Insurance Premium (MIP) from .55 up to .90 percent.

 

 

 

 

 

What This Means

For the most refinancing FHA homeowners and home buyers, this MIP change is neutral— just different.  To carry each month, loans will COST MORE; However, procuring will be LESS COSTLY. It is a compromise that should help steady and recapitalize the government group.

Contact Access Real Estate Lending today to see if a FHA Streamline Refinance will work for you!

*Change to FHA MORTGAGE Insurance Premiums was originally to change September 7, 2010.

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