Why Your Asset Statements Matter to Mortgage Lenders

Applying for a loan can feel like an invasion of your privacy. As if lenders want to pull back the curtain on your life and analyze every detail, including your job, your income from that job, your tax returns, and, worst of all, copies of your asset statements. You want to ask them what they’re looking for and why! Well, many borrowers do ask that question and with good reason. When strangers dig around in your personal life, it feels invasive. When they dig even deeper, asking questions about the documents you’ve provided,…continue reading →

Mortgage Rate Recap and Outlook For Week Ending June 15, 2018

After trending down for the last two weeks, mortgage rates increased over the previous week and could continue that trend. This week saw the Federal Reserve raising not only the Fed Funds rate, but also the Prime Credit rate, and the Reserve Balance rate. In comments by the Federal Reserve Chairman, Jerome Powell, a hawkish shift from the Fed is apparent. Based on robust economic data, healthy rate of job growth and increased consumer spending, the Fed feels the potential to increase rates again in 2018 is likely. The increase in Retail Sales is…continue reading →

What to Do in a Changing Real Estate and Mortgage Market

As if the shortage of homes for sale wasn’t severe enough, now rising interest rates are making the spring buying season extra challenging across the nation. The latest analysis and forecasting of market information by organizations such as National Association of Realtors (NAR), the St. Louis Federal Reserve, and Realtor.com highlights the shortage in inventory. Meanwhile, the California Association of Realtors (CAR) is reporting some good news in California. Read on to get the latest data, but don’t take it all as a sign that you should abandon your plans to buy or…continue reading →

How to Get a Mortgage If You’re Self-Employed

If you think being self-employed will limit your ability to get a mortgage, you’re wrong.  Qualifying guidelines are the same for anyone applying for a mortgage whether they receive a W-2 every year or they’re self-employed. Borrowers qualify based on a minimum level of income, credit, and savings. Each category requires documentation to prove, aside from your assurances, that you do in fact: Earn enough of a steady income Have built and maintained a good credit history Have adequate savings for a down payment and all closing costs It’s The Documentation Documenting the…continue reading →

Mortgage Rate Recap and Outlook For Week Ending June 8, 2018

Without any geopolitical flare-ups over the last week, the impact of economic data has been very mild with no measurable effect on the markets or mortgage rates.  The biggest job news was the filing of Jobless claims coming in slightly below predictions, but the 4-week moving average ticked up to 225,500 - amazingly low. Global economic news has also had little effect on mortgage rates, with continued talk of a timeline to end qualitative easing (QE) in the ECB the only topic of import. While the markets are quiet now, all eyes are…continue reading →

Here’s What You Need to Know About a Condo Loan

On the surface, everything looks the same when you apply for a mortgage to purchase a condominium. You get pre-approved for the mortgage before you ever make an offer on a home so you know your purchase price range and maximum mortgage amount. Once you have an accepted offer, you take all the steps to comply with your purchase agreement like making your initial deposit into escrow, locking in your interest rate and paying for the appraisal. Although you know your new home comes with a monthly Homeowners Association dues payment, that’s got…continue reading →

Mortgage Rate Recap and Outlook For Week Ending June 1, 2018

The market continued to improve in the early part of the week, led by the drama coming from Italy and a sharp drop in oil prices.  These issues are no longer impacting the markets, and mid-week Mortgage Backed Securities began to move back into the red, creating a slight pressure of increasing rates to come. Year over year PCE, the key inflation indicator, came in at 1.8% - below the Feds target of 2% - and other economic data was also relatively mild. The release of the Feds Beige Book yesterday (not a…continue reading →

Mortgage Rate Recap and Outlook For Week Ending May 25, 2018

Some old influences on the long-term bond market worked to slightly lower rates this week, as fear of geopolitical events sparked a move of institutional money into the safety of the long-term bonds. Specifically - the negative talk from North Korea’s leader and officials and the cancelation of the summit next month with the US brought back the fear factor that had influenced the market a couple of months ago. On top of that, the Mortgage-Backed Securities markets benefited from a more dovish stance from the Federal Reserve based on concerns about trade…continue reading →

What Interest Rate Can You Really Get For Your Mortgage?

When you set out to buy a home, one of the first things you look at is where mortgage interest rates are these days. The second thing you want to know is can you get that rate? If the answer is no and you can only get a higher interest rate, you’ll want to know what gives? Understanding how they determine the interest rate you qualify for, versus what you see in a general online search, is critical. It boils down to the risk you represent to the lender, based on specific factors…continue reading →

When Is a High Credit Score Not Good Enough for Loan Approval?

It’s true that having a high credit score is a benefit when applying for a mortgage. A high score is your ticket to the lowest rates available at the time you apply for a mortgage, especially if you’re applying for a jumbo mortgage (above the high balance conforming loan limits in your area). But don’t let this fact fill you with a false sense of confidence, because your high score won’t guarantee you’ll be approved for a loan. I hear this common misconception regularly from potential borrowers -- and not just first-time home…continue reading →