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For the Week Ending August 23, 2019

 

Please enjoy this quick update on what happened this week in the housing and financial markets.

 

The Fed released the minutes from July's FOMC meeting, where it cut policy rates by 0.25%. The minutes showed support for future rate cuts only if necessary.
Stocks climbed on strong earnings reports from retailers this week. Gains in earnings highlight consumer confidence and ease fears of a slowing economy.
Jobless claims fell sharply last week, suggesting the labor market is holding firm despite a manufacturing slowdown and concerns about a possible recession.

 

Housing starts dropped for the 3rd straight month in July to 1.191 million units, but a steep decline in construction of multi-family housing units was to blame. 
Single-family homebuilding actually increased 1.3% to the highest level in 6 months. Permits surged 8.4% in July, the largest gain since June 2017.
Existing home sales rose 2.5% in July, more than expected. Despite a global economic slowdown, the housing market appears to be strengthening.

 

Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.

 


The Happy Homeowner

Aug 22
3:27
AM

You’ve considered countless properties and visited many open houses, before finally zeroing in on your choice house, making an offer, securing financing and closing on the property.

Congratulations, you are now a home owner! But there are a few more things you’ll want to consider now that you’ve moved and settled into your new home. Here, we’ll detail what you’ll want to be aware of when it comes to maintaining your new property, as you continue on the path to becoming what Greenway likes to call the Happy Homeowner.


KEEP YOUR HOUSE CLEAN
You might have always wondered why your parents were so insistent on keeping a clean house when you were a kid, and now as an adult you know – not only does a spotless house look good to you and your guests, it can also be very attractive to prospective buyers should you eventually decide to sell the property. Do a little here and there to make sure your house is always ready for company, and be sure to break out the big guns occasionally for some deep cleaning.


KEEP YOUR HOUSE WELL MAINTAINED
In addition to making sure your new home is as clean as it can be, you’ll want to make sure it is well maintained. That means keeping up with the cost of repairs when they pop up, and not leaving them to fall to neglect.

Make sure to take some time to keep the fences mended, the house paint looking fresh, and the roof nice and stable. Do your best to keep the interior updated as well – putting in new fixtures, painting the rooms, even adding new flooring! If you can afford to, be sure to upgrade any items you might be changing out, such as lighting and fixtures.

Again, not only will these help keep your house looking as good as when you bought it, they’ll also help you build home equity and make the house attractive when you decide to sell.

 


This is the thrid video in a 4 part series where Erin discusses the impact of student loan debt on mortgage qualification.

In this video, she details the guidelines for how student loan debt is handled in calculating ratios for FHA Mortgages.

The final video in this series will cover the impact of student loans on VA mortgages.

It is very important to know the status of your student loans when you start thinking about buying a home.

 

 

Be sure to reach out to Erin, The Mortgage Expert with any questions you have.

 


COULD IT BE THE RIGHT TIME TO REFI YOUR CURRENT MORTGAGE?

With rates declining, you should have your rate, qualification and equity position reviewed by Erin and her Team.

Visit our refinance resource page and see what your payments might look like with Erin's Refi mortgage calculator.


First Time Buyer Interested in Down Payment Assistance Programs?

Check out our Frist Time Buyer Resource Page!


Are you ready to take the next step?

It's time to get pre-approved with Erin the Expert!


For the Week Ending August 16, 2019

 

Please enjoy this quick update on what happened this week in the housing and financial markets.

 

 

Stocks plummeted this week as 10yr Treasury yields fell below those for 2yr bonds. The resulting inverted yield curve could indicate a coming recession.
Retail sales surged in July, which could ease worries of a pending recession. Inflation also picked up slightly in July as consumer prices increased.
Despite the recent economic data showing the economy isn't slowing as drastically as some expected, mortgage rates remain low and could go lower.

 

Falling mortgage rates support home builder confidence. According to NAHB, builder confidence for single-family homes rose one point to 66 in August.
However, builders still are not producing enough homes to meet demand. Land and labor shortages contribute to higher costs, hindering new construction.
Lower mortgage rates boost buyer demand, but inventory remains an issue. Newly listed properties were down 7% in July compared to a year ago.

 

Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.


What does the mortgage process entail? Here is your guide to understanding the mortgage process from start to finish. 

1. APPLICATION

You'll need to submit some documents, including, but not limited to:

  • Pay stubs – last 30 days
  • W2s – last 2 years
  • Federal tax returns – last 2 years, all pages/schedules
  • Bank statements – Last 2 months, all pages
  • Purchase contract – All pages
  • Realtor and attorney contact info
  • Copy of photo ID – must be legible
  • Appraisal payment

The required documents can vary based on the type of loan you're getting and your lender's underwriting requirements. To keep things moving, be ready to respond quickly to any requests for additional documents or details.

2. PROCESSING
Loan file is turned into the processing department. Loan processors gather documentation about the borrower and property, review all information in the loan file and assemble an orderly and complete package for the underwriter. The processor will immediately order your appraisal and begin to process your loan file.

3. APPRAISAL
Appraiser contacts realtor to schedule appraisal. Report available 3-5 days after the appraisal is performed.

4. UNDERWRITING
The underwriter is the key decision-maker. Appraisal is reviewed and file submitted for underwriting. Approval is typically available within 3 days.

5. APPROVAL
Once your loan is approved, the Mortgage Commitment is sent to you, your Realtor and attorney. Processing will contact you to discuss any outstanding documentation (conditions).

6. CLEARING CONDITIONS
Once outstanding conditions are supplied to processing, the file returns to underwriting for final review. Typically takes 48 hours.

7. CLEAR TO CLOSE
Once underwriting reviews the conditions, they clear the loan for closing. The closing department will contact your attorney to set up a closing date. Closing can take place any time after this point.

A FEW THINGS TO KNOW...

  • Do not make any large purchases without consulting your loan officer. Spending cash or incurring new debt could negatively impact your ability to qualify for a mortgage.
  • After closing, your loan may be transferred to a new servicer. You will receive a notice in the mail when this happens. It is normal and everything is okay with your account.

 

Watch our Introducton to the Mortgage Process Here.

 


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