8 Things You Absolutely Shouldn’t Do Now That Your Mortgage Application Is In-Process

Category: Consumer Education

Posted on in Consumer Education

8 Things You Absolutely Shouldn’t Do Now That Your Mortgage Application Is In-Process

With mortgage rates are hovering near all-time lows, lots of Americans are taking advantage of refinance and home buying opportunities. The downside of today’s unexpectedly-low rates, though, is that mortgage lenders are ill-equipped for the rush of new business. As a result, the process of underwriting and approving new mortgage applications is taking some conforming lenders as long as 2 months to complete. This is double the time needed as recently as six months ago. Because there may be 60 days between the application date and the closing date, it’s important for applicants to remember that mortgage approvals can be revoked at any time prior to funding. As mortgage applicants, there are many events that are out of our control — job security and health matters, for example. But there are also events that are within our control. Knowing that mortgage approvals can be fragile, here are 8 things you should absolutely not do while your home loan is in […]

by jberman
Posted on in Consumer Education

How to Shop for Mortgages in Colorado during a “Vacation Week”

Mortgage markets are like any other market — in order for goods to change hands, a buyer and a seller must first reach an agreement to “trade” at a specific price point. In general, the more buyers and sellers there are for a particular item, the easier it is to find that “fair value” and make the deal. An abundant number of buyers and sellers often creates a liquid market in which assets — in this case, mortgage bonds — can be sold rapidly with minimal loss. This week, though — with so many traders on vacation — the “liquid market” has gone illiquid. The treasury market posted just 41 percent of its normal, daily volume Monday, leading to erratic pricing in the mortgage bond market which, in turn, caused mortgage rates to follow. For example, mortgage rates started the day lower yesterday before sprinting higher over a 30-minute, early-afternoon span. Markets were largely unprovoked by economic data, geopolitical developments, […]

by jberman
Posted on in Consumer Education

Get Extra Tax Deductions In 2008 — Pay Your Mortgage A Few Days Early

For most Americans, mortgage interest paid on a home loan is tax-deductible in the year in which it was paid. With advance planning, therefore, homeowners can increase their 2008 tax deductions and limit their tax liability on April 15. The key is to make the January 2009 mortgage payment before the New Year begins. In making the payment in 2008, the payment’s mortgage interest is applied against this year’s tax deductions instead of next year’s. And lest you think you’re paying “in advance”, remember that mortgage interest is paid in arrears; a payment due January 1 accounts for interest that accumulated in December 2008 anyway. Tax planning is a complicated issue and not all homeowners will qualify for mortgage interest tax deductions. Check with your tax professional before making tax planning decisions. If you don’t have an accountant you trust, call or email me anytime; I’m happy to make a recommendation to you.

by jberman
Posted on in Consumer Education

The Truth About Those “4.500 Percent Mortgage Rates” You Keep Hearing About

Business television is abuzz this morning with talk of “four-point-five percent mortgage rates”; the clip above ran on NBC Today. The news stems from a leaked story that the U.S. Treasury will intervene in the mortgage market, lowering rates a full percentage point below their current levels. As cited by every journalist in every publication, however, the story is 100% speculation. Naturally, that doesn’t stop the press from covering it. When hope for homeowners gets spread in this manner, it’s important to remember some facts: The Treasury doesn’t set mortgage rates — Wall Street traders do. Historically, rates are based on the Supply and Demand for mortgage-backed bonds. Treasury intervention doesn’t guarantee low rates. That mortgage rates are up by a half-percent since last week proves it. Zero details about the plan have been confirmed, quoting CNBC. Everything you’ve heard about 4.5 percent rates is a guess at this point. But, perhaps most importantly, nearly every analyst interviewed has expressed […]

by jberman
Posted on in Consumer Education

10 Tips for finding a home financing expert

Be Informed Don’t sign an application or contract without understanding all the terms of the loan. Originators should be willing to explain all loan terms and conditions. No Pressure Don’t allow yourself to be pressured into a loan. Reputable mortgage originators strive to make consumers aware of and comfortable with their loan options. Use Caution Never sign blank forms in a loan package and be sure to get copies of all documents bearing your signature. If a broker is asking you for personal information that doesn’t seem relevant to the transaction, ask them for further clarification before providing private data. Ask Questions Question any fees you do not understand. Question terms you don’t understand. Question guidelines or explanations that don’t make sense. Shop Around Shop around for a loan originator that you are comfortable with. There are lots of choices for assistance. Don’t take your real estate agent’s word as the gospel. When you are unfamiliar with the process of […]

by jberman
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