Rates
Well this week the stock market couldn’t break that magical 20,000 mark, and sold off a little, which eased mortgage rates.
For the week we actually witness rates improve a little, but not to where we were prior to the Federal Reserve announcement on the 14th. Let’s call this a little pause, and rates will definitely keep their trend towards the 5’s and eventually towards the 6’s.
Like I indicated in prior blogs, we are definitely going to say good bye to the 3’s and my March, probably good bye to the 4’s, and the Federal Reserve will keep raising interest rates and the economy grows even more.
And as I have told many Realtors and Appraisers this week, who think the sky is falling…nope..try to remember back in 2004-2008 when we have a booming housing market and rates were in the 6-7’s range.
Fannie Mae Day 1 home loan
Yep, lending just got a little bit easier, well actually A LOT easier. On December 10th Fannie Mae rolled out Day 1 home loan, and here is how it is easier:
- -For a majority of W-2 borrowers, we will NOT have to ask them for:
- -Paycheck Stubs
- -Tax Returns
- -W-2’s
- We will be utilizing automated income verification services for these three items, which means we can input certain data, and get all of these items with in 30 seconds!!!!
- -For a Majority of borrowers utilizing major lending institutions, we will NOT have to get bank statements from them. Once again, borrower will be sent a link, authorize, and we will get banking information, automated, with in 1-2 minutes!!!
- -Appraisal Waivers, Fannie Mae is going to authorize more and more appraisal waivers, based on their data already in the system. This will save 7-10 business days, which we had to order an appraisal.
The roll out of the Day 1 initiative has been pretty seamless for the whole 20 days we have been using it. And based on what we see, we will be able to close loans in 15 days or less.
OK, so now the potential hiccups:
- -Borrowers employers need to utilize online data uploads. We found most companies in Idaho do, except for those Mom & Pop employers.
- -Borrowers Bank have to be automated, and follow certain banking standards, which we found most do, maybe not all of the credit unions.
- -This program, right now, is only for conventional financing, no VA, FHA or RD. Although I do foresee those types of loans following along in the near future.
- -Appraisal waivers haven been pretty good, as long as the home is in a major metro area, areas like Melba, Homedale, or small cities with little data, haven’t been getting them.
Overall, this is a GREAT program, and when a borrower fits in to the system, will save tons of time!
Manufactured Homes
Over the last month, have been getting a ton of questions on manufactured homes and if we can do loans on them. The answer is YES! We can actually go all the way down to a 550 FICO score on Mannies with a FHA or VA or RD loan.
AND, I created a pretty darn good web page, that should give some training and answer questions people have on Mannies:
http://www.375loan.com/resources/manufactured_homes/
VA loan
And let’s not forget our Veterans, who give it their all. The VA loans are the best loan on the market, don’t let anyone else tell you any differently!!! I have also set up a specific VA web site that goes over VA Loans, VA funding Fees, and VA non-allowable closing costs. Check that out here, and…yep new video!!!
Link here: http://www.375loan.com/loan_products/va_home_loans/
Real Estate news
And finally, the Boise Regional Realtors have an AWESOME monthly video, which is great to send out to potential clients, it really nails down monthly stats, see video below: