Tim Loss
The mortgage process of obtaining a loan can be somewhat challenging. Making a decision can easily kill the mortgage process and keep you from accomplishing your goals. Here is a list of do’s and don’t to keep you in the “know” while your mortgage process has started.
DO- ASK QUESTIONS
If you think there is something about your mortgage loan that we need to know about (a gap of employment over 45 days in the last 2 years,
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Tim LossWith many Americans saddled with seemingly insurmountable amounts of debt – stemming particularly from student loans – homeownership can seem like an unattainable goal. But the truth is that owning a home is within reach for most, assuming they get their overall financial health into shape.
While tackling student loan debt may seem the most important thing to do to get yourself on track financially,
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Tim LossThe monthly housing data for June and July is cycling in, and it looks pretty good.
The Wells Fargo/NAHB Home Builder Sentiment Index posted at 59 for July. (Anything above 50 is good.) The sub-components within the index were particularly encouraging. Home builders reported strong current sales. Better yet, they expect strong sales to persist into the future.
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Tim Loss
An essential part of the mortgage refinance process, a home appraisal is a way to judge what your property is currently worth – and how lenders can ensure that you are able to leverage the full value of your equity. When it comes to an appraisal, it is in the homeowner’s best interest that it be evaluated as high as possible.
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Tim LossThe employment numbers for June came in much stronger than anyone expected. Payrolls were up a whopping 287,000 for the month.
This was a welcomed turnaround compared to the dismal 38,000 payroll increase in May. Somewhat paradoxically, the unemployment rate also rose, by two-tenths of a percent to 4.9%. This is actually good news. It reflects an increase in labor participation and a decrease in the number of discouraged workers.
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Tim LossRising home prices can create an intimidating environment for first-time homebuyers who feel priced out of the market. However, if buyers zig where everyone else zaps, they may find that their dream home is right in front of them for the price they want, without initially realizing it.
Crumbling foundations, outdated plumbing, and a lack of a clear title are major red flags.
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Tim Loss
Each week, we see interest rates as low as they’ve been in our lifetime.
This week, the yield on the 10-year U.S. Treasury note hit another all-time low, dipping below 1.37%. Mortgage rates aren’t quite at an all-time low, which occurred in December 2012, but they’re darn close.
Again, we look to the other side of the Atlantic for the cause.
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Tim LossOne of the best things about owning your own home is that, simply by buying it, you are investing in your future. Unlike renting, every time you make a payment on your mortgage, you are building more equity and own more of your home.
This makes homeownership a potentially important element of retirement planning. With Social Security in some hot water and people living longer,
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Tim LossA vote occurred on the other side of the Atlantic last week, and the result was unanticipated by most political wonks.
As you no doubt know, the citizens of the United Kingdom voted their country out of the European Union. And given the immediate response from financial markets around the world, you’d have thought that they had voted themselves off the planet.
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Tim Loss
The UK shocked the world last week, and not in a good way. After stocks tumbled from New York to Hong Kong, the smoke cleared and London was left blushing, with many of the British themselves apologizing over the worldwide anxiety that they single-handedly created.
Up to $3 trillion was wiped off worldwide stocks.
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Tim LossWe started 2016 by expressing skepticism that the Fed would raise the fed funds rate within the first six months. Now, we wouldn’t be surprised if we went the entire year without a rate increase.
The Brexit has blindsided worldwide markets, with the US market seeing its worst crash in 10 months after the UK vote.
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Tim LossFor younger people, first-time homebuyers, the self-employed and buyers with minimal credit or assets, qualifying for a mortgage may be difficult without the help of a co-signer. While having a co-signer with a strong credit history can certainly make qualifying for home financing easier – and possibly allow the signee to get better loan terms and interest rates –
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Tim LossIf you’re in the market to purchase your first home, it can be easy to go into the entire process with a variety of misconceptions – which in turn open you up to costly errors.
The following is the first installment of a two part guide to some of the most common mistakes buyers make when they start and go through the homebuying process,
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Tim Loss
Traditionally, the self-employed have had a somewhat more difficult path to obtaining a mortgage than those with full-time work. But just because you’re self-employed doesn’t mean the doors to homeownership are closed to you.
What to expect
Since self-employment is considered “riskier” than other forms of employment, some loan products may not be available –
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Tim LossWhile limited home supply has helped drive up interest in homebuying, the truth is that some homes are more desirable than others. To help their listings rise to the top, some home sellers are converting their properties into smart homes via the judicious application of technology.
Smart homes represent the harmonious collaboration of high tech gadgets with unobtrusive design,
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Tim LossFollowing the housing crisis and the clampdown on subprime lending, many prospective buyers found themselves wondering how they might ever afford a home. Even with a rapidly rebounding economy, those with weak credit scores and limited funds to put toward a down payment may have felt underserved or hopeless.
For many, relief came in the form of an FHA loan.
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Tim LossImagine. It’s the Christmas season. The extended family is gathered in the living room. Uncle Jim hands you a sleek looking package in penguin themed wrapping paper, you eagerly tear it open, and . . . it’s a wall clock with his mortgage company’s logo in the middle. “Now whenever you check the time, you’ll remember where to call if you ever need a home loan,”
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Tim Loss
Mortgage rates have drifted lower once again. We can’t say that we’re surprised.
First, there’s weak gross domestic product (GDP) growth, with the economy growing at a 0.5% annual clip. In addition, businesses and government (mostly businesses) added 160,000 new employees to their payrolls last month. The consensus estimate was for 200,000-or-more new jobs.
Mortgage rates immediately moved lower on the disappointing employment numbers.
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Tim LossJeff Speck’s book Walkable City: How Downtown Can Save America, One Step at a Time is changing the way many Americans view their built environment, with hard-to-believe statistics like this: since the 1990s, the share of automobile miles driven by Americans in their 20s has dropped from 20.8 percent to 13.7 percent.
While studies consistently find that Millennials favor homeownership at an overwhelming rate,
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Tim LossOn April 18, 2016, Business Insider reported that rental prices in major markets, including San Francisco, had finally begun to drop. But let’s face it—the sub $1,000 one-bedroom apartment in major markets is now merely a story for millennials to tell their grandkids.
For those thinking about becoming a first-time homeowner, the long-term benefits of home ownership make more sense on paper than renting.
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Tim LossShould We Listen to What the Fed Says?
Rates held steady last week. This means we are still regularly seeing the same low quotes on the 30-year fixed-rate loan that we’ve been seeing. Rates continue to hold near a three-year low.
The rate drop that occurred last month continues to spur demand. The Mortgage Bankers Association reports refinances rose 11% last week compared to the previous week.
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Tim LossThere is big money to make—and big money to miss out on. Right now, tax returns are coming in, inventory is low, home prices are high, and while nothing is guaranteed, the risk seems to be just right for homeowners to make their move and sell.
Here’s why:
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Tim LossA decade ago, a jumbo loan meant a 30-percent down payment and an astronomical rate. Worse yet, those excruciating terms were only offered by a major bank.
Today’s jumbo loan is far different. With the right credit score and the right down payment, the rate on a jumbo loan is only slightly higher than that of a conventional loan.
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Tim LossMortgage rates are life-changing numbers. If the rate on a thirty year $290,000 loan were to drop from just four to three percent, it would save the customer $170 per month, and $61,200 throughout the life of the loan. To the first-time homebuyer, it may feel like understanding these crucial numbers is for the Las Vegas oddsmakers. It really isn’t that complicated though.
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Tim LossHousing starts came in strong for February, rising 5.2% month over month to 1.178 million units when annualized. Single-family starts were especially robust, rising 7.2%.
That said, at least a few commentators were down on permits, a useful gauge for estimating future activity. Overall, permits were down 3.1% in February. However, single-family starts were actually up 0.4%. Year over year,
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Tim LossIt takes 7 seven years for a foreclosure to disappear from a credit score. Now do the math from when the Great Recession began, and 2016 could very well signal the era of the boomerang buyer.
A boomerang buyer is one of the 7 million people who lost their homes to foreclosure during the recession. There are varying degrees of optimism as to what they will do now.
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Tim LossBACK ON PACE AGAIN After a respite in January, payrolls returned to form in February, with job growth in excess of 200,000.
Markets have turned things around as well. Stocks are again on the rise; commodity prices continue to trend higher. Oil, in particular, is up $9 a barrel over the past three weeks.
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Tim LossThe US Department of Veterans Affairs’ home loan program has the most arduous task of any government loan program: Give those who make the American dream possible the best chance to live that same dream. It’s a big task, and the VA has answered the call.
2015 saw the VA back a record 631,151 loans.
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Tim LossThings Are Beginning to Soften a Bit
The S&P/Case-Shiller Home Price Index showed prices in its 20-city composite index rose 0.8% month over month in December, but remember, this index only accounts for the 20 largest markets.
Existing home sales data shows prices softening. The median price of an existing home fell 4.2% to $213,800 in January.
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Tim LossUnemployment is 5.5%.
Millennial underemployment is around 40%.
The Federal Reserve Bank of Cleveland puts the chances of a 2016 recession at just 6%.
US oil and gas has lost 70,000 jobs since Oct 2014.
Today’s economy has an identity crisis. It doesn’t know if it’s a bull or a bear.
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Tim Loss
Minutes from last month’s Fed meeting showed concerns over global economic weakness.
The Fed does not appear likely to raise policy rates anytime soon.
Oil producing countries are unifying to freeze oil production levels and stabilize oil pricing.
Stocks have rallied on the news this week for the best gains of 2016.
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Tim LossIn this issue, we will touch on a lot of consumer-oriented subjects regarding the sale and purchase of real estate.
Tim Loss
It’s no secret that having high credit scores has its advantages getting low rates. Having a high credit score can literally save you millions of dollars over your lifetime by getting the lowest interest rates for a mortgage, zero financing fees on auto loans and credit cards etc. High credit scores equal low rates.
It’s a catch 22.
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Tim Loss
Paper work in the mortgage process, love it or hate. Suck it up.
Don’t be amazed with the amount of documents needed throughout the mortgage process of purchasing a home or refinancing it. In making light of the frustration I often ask to have a hair follicle placed in a Ziploc bag and sent to me; the days of walking into a bank and getting a mortgage because your credit score is 700 is long over.
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Tim LossPre-Qualifying – Get pre-qualified for a mortgage and know in advance exactly how much house you can afford. Discuss with your mortgage professional the pros & Cons of different options and how they will affect Payment, Closing Costs & Down payment to fit your needs.
Loan Search – Put yourself in the hands of an experienced mortgage professional,
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Tim LossIf you are working anywhere near the real estate industry, by now you have heard about the importance the regulations known as TRID, which are effective for residential mortgage applications submitted on or after October 3, 2015. There are many questions about these new regulations and in this article we will try to answer these from a consumer and real estate practitioner point of view.
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Tim Loss
What’s the difference between pre-qualification and pre-approval?
Pre-qualification is the starting point in your search for mortgage financing. A quick snapshot is taken which includes income, existing debt, savings, length of employment, etc. All of these factors will then be analyzed to determine your loan eligibility. During this phase you mortgage Professional should also discuss pros &
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Tim Loss
If you are paying private mortgage insurance you are giving money away.
With the government forcing homeowners to pay mortgage insurance for the life of an FHA loan, there has to be a better option. FHA loans are notorious for being the first time buyer ticket to getting into a home. Your credit does not need to be perfect, you only need 3.5% of out of pocket money for a down payment,
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Tim Loss
Buying a home is one of the most exciting events in a person’s life, whether it’s the first home or the fifth one; however, it can also be one of the most stressful. Purchasing a home should be regret-free and anxiety-free.
I’ve closing thousands of loans. Here are the top 7 common mistakes home buyers make. Lower your stress and focus more easily on possibly the single largest purchase of your lifetime.
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Tim Loss
If you can’t pay cash for a home you will need a mortgage. The goal of every consumer is to get the lowest rate at the lowest cost. Mortgage rates can change on an hourly basis and because the interest rates change so often there is not an accurate interest rate on the internet. Don’t fall for teaser rates without reading the fine print.
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Tim Loss
As you consider a new mortgage transaction, it’s important to find a company that fits your needs. Every mortgage company is different. To make the mortgage process easy and enjoyable, I focus on four primary areas:
Choice
We offer a full range of loan programs including fixed rate loans, adjustable rate loans, interest only options and more.
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Tim Loss
Pre-qualification and pre-approval are two of the most important steps you can take towards owning a new home. Obtaining both pre-qualification and pre-approval allows you to begin searching for a new home with your potential loan established and accepted in advance.
Click here to get Pre-Approved
Pre-Qualification
Pre-qualification is the first step to securing financing.
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Tim Loss
Are You Working With An inexperienced Mortgage Consultant?
A good Mortgage Consultant should be someone who will help you navigate the market, not complicate your outlook. Here are six tips on finding a good Mortgage Consultant.
1. Shop around. You are entering into a business relationship for your most prized asset. Just as you would research other services,
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Tim Loss
Why pay your landlords mortgage payment and pay his mortgage off?
Picking the home you want is the easy part, but there are three qualifying factors that a Mortgage Consultant looks at to determine your pre-approval. Your credit score, debt to income ratio, and the amount of money you have to put down. From here your mortgage consultant will be able to determine the type of programs you qualify for.
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Tim Loss
“A home is one’s most prized asset and you deserve to have it treated that way.”
With over 12 years of mortgage originating experience, a great knowledge of underwriting guidelines, setting clear expectations, and effectively communicating the process of buying or refinancing residential properties. It is extremely important to understand my client’s needs and goals so that I can ensure they are getting the best loan program possible.
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