Home Buyers and Sellers Be Aware! RESPA/TILA Forms To Be Merged August 1, 2015!

Home Buyers and Sellers will need to be aware there will be some major changes to the closing process, which will make it almost impossible to "rush" to the closing table to beat a deadline.  More layers, with required waiting times, plus, what used to be handled by title companies, is now being orchestrated by the lenders.  There will be a THREE DAY waiting period AFTER the numbers are generated BEFORE a closing may occur!  If there are changes, then ANOTHER THREE DAYS will be required, causing delays in closing.  We have a significant amount of delayed closings now.  This should almost make it impossible to close on time.  Rather than making 30-45 days standard on contracts, it will become necessary to put upwards of 60 days for conventional and possibly up to 90 days on VA and FHA products.  The link below will take you to a video that reaffirms the confusion that is undoubtedly coming, as the standard HUD-1 Settlement Statement, with numbered lines, is replaced by this new.... merged... un-numbered.... form!  

GOOD LUCK TO US ALL!!

RESPA/TILA Forms Merger To Add Home Purchase Problems!

Mortgage Interest Rates week ending 5/1/09

Rates on 30-year mortgages slid to an average of 4.78 percent this week, tying a record low and spurring refinancing activity as the housing market moves closer to bottom, according to Freddie Mac's weekly nationwide survey.

More on Making Home Affordable

Making Home Affordable



Homeowners were lent a hand this week by the Obama Administration's newest effort to help families remain in their homes. The 'Making Home Affordable' program was created to help as many as 9 million homeowners who want to stay in their homes, but are struggling with their finances.



As with most legislation of this type, some of the details are still pending and subject to further clarification – but I would invite you to call me so we can begin to discuss how they might benefit you.



There are two important elements of this program:
One part of the program will be available to 4 to 5 million homeowners who have a solid payment history on an existing home loan owned by Fannie Mae or Freddie Mac. Many of these homeowners have been unable to refi and take advantage of lower interest rates because their homes have lost value. This plan allows for rate and term refis up to a 105% loan-to-value, which will help many homeowners take advantage of today's lower rates or refinance an adjustable-rate home loan into a more stable product, such as a 30-year fixed rate loan.



To qualify, the home must be your primary residence and have a loan balance not exceeding $729,750. While there are still a few unknowns in the mix, this program will help a large number of homeowners cut their monthly expenses and benefit from the lower home loan rates available today.



The second part of the program will help up to 3 to 4 million at-risk homeowners avoid foreclosure by reducing monthly home loan payments. This program lets home loan servicers modify eligible loans for those who have experienced financial hardship. The plan is designed to help these at-risk borrowers decrease the payment amount on their existing loan.



Help Is Here



The housing and job markets continue to be hard hit by the contraction in the economy. But combined with earlier measures, such as the $8,000 tax credit for first time home buyers, the Making Home Affordable program may actually have some legs to help the housing market and economy overall.



Regardless of which opportunity may be right for you – the best first move is to pick up the phone and let's start talking. Contact Michael Payette at M&I Bank 813-334-8412 or via email at Michael.Payette@micorp.com and let him know you saw this here on the blog!

Are You Still Waiting For The Government?

Article provided by Michael Payette at M&I Bank.

During the first quarter of 2009, the first 100 days of the new President's term, you are no doubt going to hear a lot of news stories about the economic stimulus plan and the financial rescue package and their possible ramifications to the real estate and mortgage markets.

You're going to see headlines about new incentives for home buyers and hear stories about 4% interest rates. But the truth is that right now, at the time of the writing of this article, the government already has in place one of the largest tax incentives for qualifying home buyers it has ever offered - up to an $8,000 tax credit for first-time buyers, and mortgage rates are within a half a point of being the lowest they've been in our country's history.

The truth is that, while all of this is great news for those looking to buy or refinance a home in 2009, none of it matters if you can't qualify for financing. None of it matters if you sit on the fence and watch the great opportunity of homeownership pass you by.

Make sure your financial house is in order

If the idea of buying or refinancing a home in 2009 has even crossed your mind, give us a call. We'll review your financial situation and see what makes sense for your individual goals. Remember, because of increased delinquencies and today's tougher economy, lenders have tightened standards for both new purchases and refis. And while mortgage financing is certainly available and affordable to everyone who qualifies, you're going to need a solid credit score, you'll need to be able to document your income, and, if you're purchasing a new home without a special government program from the VA or USDA, you're likely going to need a down payment as well – at least 3.5% for an FHA loan. And there's no stimulus bill or bail-out plan that is going to change this. So, if you're looking to purchase a new home in 2009, take the time to locate the following items:

Your W-2s and tax returns for the last two years;
Your last three months of bank statements; and
Pay-stubs for the most recent 30 days.

If you haven't checked your credit in awhile, now is the time to do so. A lot could have changed since the last time you checked it, good or bad, and you don't want any surprises that might alter your plans. We'll gladly review your credit for you and see if there is anything that needs to be addressed, but don't wait. It would be a shame to miss out on a great opportunity simply because you didn't check your credit report.

For homeowners with enough equity to refinance, now may be the time to lock in a low rate. Sure rates could go lower, even to the 4% level you've heard about in the news. But rates could just as easily start to rise again, and home values could drop even lower, making it difficult for your house to appraise. In the financial and credit markets, there are no guarantees, and there's nothing in the stimulus bill or bail-out plan to address mortgage rates. Why lose money waiting around for an opportunity to save a little bit more each month in the future when you can have significant savings every month right now?

Let us review your mortgage and see if you can benefit. The worst thing that could happen is you find out that you already have the best mortgage and interest rate possible.

For more information, please email Michael Payette at M&I Bank, michael.payette@micorp.com or phone him at (813)334-8412. Mention you saw this article on my blog, if you would.

Fear You Can't Qualify For Loan? Worth A Try!

ORLANDO, Fla. – Jan. 14, 2009 – Qualifying for a mortgage is not nearly as easy these days as it was just a couple of years ago, before the subprime-loan-market collapse and the worldwide credit freeze. Still, mortgages are approved every day, even for homebuyers with less-than-sterling credit records.“If you have over a 580 [credit] score, you have a chance” of qualifying for a home loan, said Marie Martin, a veteran broker with Mortgage Crafters in Brevard County. “A 600 score is better, and 620 and over is very good. You shouldn’t have a problem.”Consumers can get copies of their credit reports from each of the three major reporting companies at no charge at least once a year, but your credit score – a single number that typically ranges from a low of 300 to a high of 850 – will cost you $5 to $10 under most circumstances.Before seeking a mortgage, get a copy of your credit reports to check for inaccuracies and to gauge just how much information and detail – good or bad – your borrowing record contains. A consumer whose credit score is a little too low to qualify for a home loan may need a year or two, or more, to establish an improved track record.These days, a larger share of the loans being made are insured by the Federal Housing Administration, Martin said, and they allow down payments as low as 3.5 percent for qualifying buyers. Private lenders still make these FHA loans, but the government agency backs them for borrowers who meet its guidelines. The FHA has a variety of tools for helping homebuyers learn how to qualify for a mortgage, available online or by calling 1-800-CALL-FHA (1-800-225-5342).With housing prices down 25 percent in the past year alone and interest rates lower than they have been in decades, more people can qualify for a home loan based on their ability to meet the monthly payment, at least on paper. For those who think they are ready financially, who expect to remain put for several years and who want to own a home, here are some suggestions from industry professionals and the U.S. Department of Housing and Urban Development that may improve your odds of getting a mortgage:• Don’t assume you won’t qualify. Do some basic research on how to buy a home at the local library and on the Internet. The FHA has a handy Self Assessment Tool Kit to help prepare for homeownership; it’s at http://fhaoutreach.gov/FHASelf. • Document your history as a reliable tenant. At least one or two years’ worth of canceled rent checks or receipts showing a consistently good payment record is helpful.• Make an appointment to sit down with a local mortgage broker or lender. Get a professional to review the details of your personal situation. They will usually do a free qualification analysis in hopes of getting your business. They can identify problem areas that may be correctable.• If you use a mortgage broker, make sure he or she is in good standing with state regulators. Mortgage brokers represent multiple lenders and can help you find the best deals. But they also charge a fee, which is included in the loan. When choosing among brokers, check their state licenses with the Florida Office of Financial Regulation. You can do it online at tinyurl.com/749lgf. Copyright © 2009 The Orlando Sentinel, Fla., Jerry W. Jackson. Distributed by McClatchy-Tribune Information Services.