When you’re ready to get a home loan, it can help to have as much information about the mortgage process as possible. That way you can take the right steps towards getting your loan, and hopefully avoid some of the more common pitfalls along the way. To help you reach your goal of homeownership, here’s a list of do's and don’ts as you start with the process of getting a home loan and buying a home.
DO:
Keep All Records in Good Order.
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Availability - Keep your financial records close at hand in case updates are requested.
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Income – Be aware that underwriters typically verify your income and tax documents through your employer(s), CPA, and/or IRS tax transcripts. Hold onto new paystubs as received.
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Assets – Continue saving incoming account statements. Keep all numbered pages of each statement. Ex. 8 of 8.
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Gifts – If you're receiving any gift money from relatives, they'll need to sign a gift letter (we’ll provide) and an account statement evidencing the source, which must be "seasoned" funds.
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Current Residence – If you're renting, continue paying your rent on time and save proof of payment. If you're selling your current residence, be prepared to show your HUD-1 Settlement Statement. If you'll be renting your home, you may need to show sufficient equity, a lease and receipt of the first month’s rent and security deposit.
Keep your credit shining. Continue making payments on time. Your credit report may be pulled again, and any negative change to your score could cause you to lose your approval and your home.
Understand that things have changed. Underwriters require more documentation than in the past. Even if requests seem silly, intrusive or unnecessary, please remember that if they didn't need it, they wouldn't ask.
DON’T:
Apply for new credit. Changes in credit can cause delays, change the terms of your financing or even prevent closing. If you must open a new account (or even borrow against retirement funds), please consult with me first.
Change jobs during the process. Probationary periods, career or even status changes (such as from a salaried to a commissioned position, leave of absence or new bonus structure) can be subject to very strict rules.
Make undocumented deposits. Primarily large but sometimes even small deposits must be sourced unless they are identified. Make copies of checks and deposit slips. Keep your deposits separate and small. Avoid depositing cash.
Wait to liquidate funds from stock or retirement accounts. If you need to sell investments, do it now and document the transaction. Don't take the risk that the market could move against you leaving you short of funds to close.
Ever be afraid to ask questions. If you're uncertain about what you need or what you should do, Greenway Mortgage is here to help you through the process, even long before you intend to buy.
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Greenway's Markets in a Minute I No Fed Rate Increase!
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| For the Week Ending February 1, 2019 |
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Please enjoy this quick update on what happened this week in the housing and financial markets.
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Consumer confidence was down this month, likely affected by the government shutdown. Still, consumer spirits remain robust by historic standards. |
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The Fed left policy rates unchanged at this week's FOMC meeting. They also signaled that future rate hikes this year are less likely than previously forecast. |
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Trade talks with China continue this week, though there is still little indication they are willing to bend to U.S. demands. The deadline for striking a deal is March 1. |
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Case-Shiller says home prices are rising at a slower pace. Even still, values increased 5.2% annually in November, only down from 5.3% in October. |
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Pending home sales were down slightly in December. Although tight supply continues to play a role, a drop in mortgage rates is expected to help. |
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New home sales were up 16.9% in November, vs 2.9% expected. The median sales price of new houses sold in November 2018 was $302,400. |
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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. |
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Closing Costs: Typically range from 2-6% of the loan. However, this amount depends on your area.
On-going Costs: Your housing costs can include the following:
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Monthly mortgage payment
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Homeowners insurance
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Mortgage Insurance
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If applicable - Flood Insurance
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If applicable - Property taxes
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Utilities
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Maintenance
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SMT's Markets in a Minute I Are real estate's supply woes over at last?
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| For the Week Ending January 25, 2019 |
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Please enjoy this quick update on what happened this week in the housing and financial markets.
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The government shutdown continues to impact markets, with delayed economic reports keeping investors in the dark. Mortgage rates are unaffected so far. |
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Plenty of global economic reports are available to cause concern for traders, though. China and Europe both show signs of slowdown. |
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Jobless claims fell to a 49-year low last week. However, claims for several states were estimated and may be overstating the health of the labor market. |
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Existing home sales fell by 6.4% in December, an unusually large drop likely caused by October's rapid rate increase. Rates have since retreated. |
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The supply of homes for sale rose more than 3% compared with a year ago. Low supply has been stifling sales since last spring. |
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Unconventional mortgages are making a comeback. Lenders issued $34 billion in non-QM loans in the first 3 quarters of 2018, a 24% increase year-over-year. |
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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. |
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Greenway's Markets in a Minute I Government Shutdown Delaying Reports
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| For the Week Ending January 18, 2019 |
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Please enjoy this quick update on what happened this week in the housing and financial markets. |
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The government shutdown, now the longest in U.S. history, hasn't yet slowed down the economy. It is expected to, however, the longer it continues. |
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Economic data has been affected though, with delays on many reports due to closed agencies. This is causing concern for investors and impacting trading. |
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Despite tightening labor markets and the wage pressure that can result, inflation has remained below the Fed's 2% target. This bodes well for interest rates. |
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Homebuilder sentiment improved in January after dropping for the last two months. Lower mortgage rates and higher sales expectations have helped. |
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Reports on monthly housing starts and builder permits weren't released this week due to the shutdown. Estimates indicate a 3% gain over December 2017. |
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A Fed study shows student loan debt plays a significant role in keeping many in the 24 to 32 age group from buying a home. |
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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. |
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