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0 comments • Linda J. Marshall • August 24 2010 02:23PMreblogged with permission from Iron Harbor Mortgage 8/23/2010
Market Analysis Section in Middle of Email and Link to Today's Rates below That
If your current rate is in the low 5's or higher it may make sense for you to refinance. Also if you are in the high 4's and you want to refinance to a 15 year fixed loan it may make sense to refinance. The vast majority of our customers use the rebate feature from our grid to accomplish refinances with very low closing costs. Those closing costs that they do incur are typically financed into the loan. If you think you may want to refinance, in Texas it is better to close your loan prior to the 2010 property taxes being certified by your county. For most counties, this certification process occurs in mid-October. Once the 2010 taxes are certified, the full year of taxes will need to be paid at closing. If you have enough equity in your home you can finance this. Please remember that the days of streamlined loans are essentially gone. It is important for you to know what information will be requested from you when you apply for a loan. It is also important for you to be aware of a couple of key items such as to save documentation on any deposits (generally over $500) on your last month's bank statements that are not clearly labeled as payroll deposits. In a case where you have cash or a check from a relative that is paying you back for a loan you gave them, it is probably better for you to just hold on to the cash and not deposit it so that you do not need to provide source documents to explain what is occurring. Also, any credit inquiries will need to be explained and it is now a requirement on conventional loans that your credit be re-pulled just prior to closing. It is typically better to not apply for any new credit until after your loan is closed. For those who filed for an extension for your 2010 taxes and have not yet filed your 2010 taxes but are planning to try to close a loan between Oct 15 and Dec 15, you will want to be sure to send your taxes in via registered mail and to save the receipt documenting the IRS received your tax return.
Below is a list of the typical documents requested on a home loan:
1) Most recent 2 pay stubs for all borrowers who are employed
2) 2008 and 2009 w2s (all employers) and, if applicable, 1099s for retirement income
3) If any of the borrowers receive retirement income, we need a copy of the most recent award letter to document the current year's benefit amount.
4) Your 2009 tax return (all pages filed with the IRS) . If you have not filed 2009, we need those pages from your 2008 return and a copy of your request for extension for your 2009 return.
5) Copies of your most recent month/quarter of account statements for your checking, savings/money market and non retirement brokerage accounts. An official statement should be available online. Please note though just a screen print with the account balances will not suffice. We need all pages of each statement. On the statements if a statement is numbered 1 to 6, we need all 6 pages even if some of the pages have no information on them.
6) If a refinance, copy of a recent mortgage statement for your current mortgage(s). If a purchase and you are not selling your current home prior to closing on a new home and you have taxes and insurance included in your payment, we will also need a copy of your current mortgage statement.
7) If you own a 2nd home and/or investment properties and taxes and insurance are included in the mortgage payments, we will need copies of a recent mortgage statement to document that taxes and insurance are included in the payment.
8) If you own any real estate without liens, we will need a copy of either the release of lien documenting that a prior loan was paid off and released or the cash warranty deed documenting you purchased the property for cash.
9) If the transaction is a refinance, copy of the settlement statement from your purchase of the property (HUD1).
10) If the transaction is a refinance, copy of the survey of your home. This is a 2 dimensional drawing of the lot and where the home sits on the lot. It is sealed by a registered surveyor.
11) If the transaction is a refinance and you are in a home owner's association, copy of your most recent HOA bill and cleared check image documenting that the most recently assessed HOA dues have been paid. In lieu of this, you can also request that the HOA manager email us at mbreston@IronHarbor.com to confirm the amount of dues and that you are current.
12) Contact information for your insurance agent.
13) Copy of driver's license for all borrowers. Please make the copy dark enough so that the date of birth is legible.
14) If any borrower(s) are not US Citizens, we need a copy of their permanent resident alien card (front and back) or Visa.
Iron Harbor Mortgage - Market Update 08/23/2010 August 23rd, 2010 9:01 AM
Mortgage-backed securities (MBS) issued by Fannie Mae and Freddie Mac are flat with a slight positive bias this morning while the 10 Yr US Treasury note is slightly negative after posting gains over the past two weeks. Stocks are up with the Dow currently up 78 points to the 10,291 level.
Below is a recap of this week's economic calendar:
Monday, August 23, 2010
Tuesday, August 24, 2010
Wednesday, August 25, 2010
Thursday, August 26, 2010
Friday, August 27, 2010
Posted by Matthew Breston on August 23rd, 2010 9:01 AM
You can access today's rate grid at http://www.IronHarbor.com/Rates . If you have any difficulty accessing the website, please email us.
If your transaction is a purchase, you can access a detailed quote at http://www.ironharborquotes.com . Just log in with your email address. If your transaction is a refinance, please answer the questions at http://www.ironharbor.com/Questionaire-RefinanceLoan and we will email you a quote.
If you would like to access Market Updates from earlier this week as well as historical updates, you can find them at http://www.ironharbor.com/MarketAnalysis .
The key reasons to consider Iron Harbor Mortgage for the financing of your new home are:
- We publish our rates and provide detailed, comprehensive quotes. There is a reason most other companies do not publish their rates.
- Your questions will be answered by a knowledgeable person during extended business hours.
- We have closed loans in over 250 cities in Texas. We are Texas experts.
- We typically provide you with a copy of your key closing documents and an explanation of those documents in pdf format at least 1 day prior to closing.
- Unless we specifically indicate otherwise, your loan will be funded by Wells Fargo Bank, N.A. and you will make payments to Wells Fargo.
How to Opt Out or Change Frequency of Emails
If you would like to receive these emails weekly or monthly instead of daily or if you would like to be removed from the rate update list, just email me at mbreston@IronHarborMortgage.com .
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Sincerely,
Matthew Breston President
Iron Harbor Mortgage, L.L.C. We start with accurate quotes and finish with no surprises.
815 Brazos, Suite 705 Austin, TX 78701 Phone 866-321-4733 Fax: 866-312-7997 Email: MBreston@IronHarbor.com Web: www.IronHarbor.com
The major difference between Iron Harbor and others is:
Better Business Bureau Report Link Look Up Iron Harbor Mortgage on BBB
Online Link to Answers to Common Questions about Us
Online Link to a Description of our Simple, 7-Step Loan Process |
Testimonials John Slates - Well that was easy! My real estate agent and title company could not believe the rate I was given. Ruth Momblanco-Bryce - You have been very efficient and generous with your time. Your attention to detail is impeccable. Jim Fawcett - I feared that if it looks to good to be true then it probably is. You got the deal done in two weeks time at the rate quoted and fees quoted. My realtor was also impressed at how well you kept her in the loop. I am a very satisfied customer. Beth Finch - I enjoyed the looks from people when they found out my interest rate. Even the title company said you'd been a dream to work with. Thank you for your help and hand holding through this. Danny Bynum - Thanks for all your hard work .... you are all over this stuff. Good to have a good mortgage guy in your corner. Carol Lott & Jerry Hopkins - Everything was perfect at closing. No surprises. No problems. We could not have been more pleased. Kevin Donohue - Thanks for your professionalism and quick response to any question I had during the process. Dr. & Mrs. Samineni - Thank you for your professional help and courtesy in getting the right mortgage for our daughter. You made it easy and less worrisome by dealing with us honestly and answering our questions. We would recommend your services to anyone without a doubt. |
0 comments • Linda J. Marshall • August 23 2010 10:47AMReblogged with permission from Texas Real Estate Center (College Station Texas)news release 8/20/2010
WEAK HOME SALES NUMBERS NOT WHOLE STORY
COLLEGE STATION (Real Estate Center) - Home sales statistics are likely to paint a picture of a weakening market through the end of 2010 and the first half of 2011. While it's tempting to attribute the bleak numbers to a deteriorating housing market, an economist with the Real Estate Center at Texas A&M University said that doesn't tell the whole story.
"The year-over-year decline in existing home sales will be the result of comparing months when there was no tax credit with those from a year earlier, when the tax credit was artificially increasing sales," said Dr. Mark Dotzour, the Center's chief economist.
The $8,000 tax credit for first-time homebuyers went into effect in January 2009 and was planned to expire in November 2009. Home sales gradually started to increase after the tax credit was announced, after bottoming out in January at an annual rate just above 4.5 million sales.
Existing home sales gradually increased in 2009 as buyers and real estate agents became more familiar with the program. Sales topped an annual rate of five million in July 2009 for the first time since September 2008.
As the tax credit deadline approached, home sales spiked in September, October and November 2009. November 2009 was the peak at an annual rate of almost 6.5 million.
The tax credit was extended late in 2009 to include sales with contracts written until April 30, 2010, and closed by June 30 (extended to September 30). Initial homebuyer response to this extension was tepid, but sales picked up substantially in March, April and May 2010, when sales were up 18 percent, 28 percent and 18 percent, respectively, over the same months in 2009.
Then the process reversed itself. Pending home sales fell dramatically in May 2010, the month after the tax credits expired. This was followed by a significant drop in home sales in June and July. In Texas, July 2010 sales were down approximately 25 percent from July 2009.
Dotzour said August figures may not be much better since many buyers purchased homes before the tax incentive expired.
"When you ‘bring forward' sales through tax incentives, sales will be lower after the tax credit ends," he said.
Unless Congress creates a new tax credit this fall, Dotzour said monthly sales for 2010 will likely exhibit significant variance from 2009, and a true reading of housing market conditions may not be possible until June or July 2011.
0 comments • Linda J. Marshall • August 20 2010 05:43PM
I specialize on the condo market, and in particular, concentrate on the City of West Hollywood. I've witnessed prices go all the way up to $800 sq ft (and more) only to fall all the way down to around $400 sq ft.
I've been watching a recent listing of a 1580 sq ft condo in a particular condo building. The Unit was originally priced at $1,550,000 and just 23 days later reduced to $1,440,000 as seen in The MLS extract above.
At this "reduced price" of $1,440,000 the unit is priced at $911 sq ft.
The last comparable sale was listed at $757 sq ft and ultimately sold at $636 sq ft (Listed at $1,249,000 and sold for $950,000).
That condo and was in great condition and decorated by a designer - so it's reasonable to say it sold at the upper end of the price spectrum. It just so happens that this condo is now For Sale again at $737 sq ft ($1,099,000).
My question is about the other condo that's now offered at $1,440,000.
How can the Listing Agent and Seller begin to justify an asking price of $1,440,000 ($911 sq ft) when the last comparable sale was $636 sq ft ...and that very same unit is now re-listed for sale at $757 sq ft?
It makes no sense and unless a buyer who is totally out-of-touch offers $911 sq ft, this property wont sell unless it's priced around $1 Million.
It's effectively 30% overpriced right now!
Anyone can do the math.
0 comments • Linda J. Marshall • August 20 2010 05:36PMReblogged from Texas Association of Realtors press Release 8/20/2010 with permission
SELLER-FINANCING LICENSING EXEMPTION REINSTATED
AUSTIN (Texas Association of Realtors) - Texas Department of Savings & Mortgage Lending Commissioner Doug Foster has issued a notice allowing the continuation of the de minimis exemption until further action is taken by the state legislature.
This exemption, which was briefly repealed by the federal SAFE Act, means that a seller can once again finance up to five properties in a 12-month period without being licensed as a residential mortgage loan originator.
0 comments • Linda J. Marshall • August 20 2010 05:34PMDATELINE: Northern Virginia – the purchaser of a new home was frantic to find a home inspector to try to evaluate why a floor in his home under construction moves up and down. The dining room floor bounces. And not a little bit!
Looking on the Internet, this purchaser was able to find a local home inspector. His popular website offered just the relief this purchaser needed. He determined to get in touch with the website’s principle inspector. Well, it’s only inspector!
Forensic Detective, aka Home Inspector, Jay Markanich, was called to the scene. The home’s purchaser noticed what he thought was a real give to the floor in question. He had brought it up to the supervisor who dismissed it as “normal.” The builder was scheduled to install drywall the next day, which prompted this purchaser to make an emergency call to the Detective.
Detective Markanich came as soon as he was able. And just in time!
Arriving at the scene, Jay was able to prove, to himself and to his client, that this floor was indeed the jumping experience! Detective Jay called it Trampo-Floor, an area almost 3’ wide, and at one end of the room. And it was right in front of a large hole in the dining room wall, about 2’ square, and rimmed entirely with metal. The detective was able to confidently answer his client’s question as to what this hole was intended to be. One of the main level’s HVAC returns!
Not a fan of a return low on the wall in a dining room (Jay’s opinion is that such a placement inhibits the ability to place furniture where desired and can add annoying background noise to dinner conversation), Detective Markanich pointed out that the wall housing the opening was a load-bearing wall, and likely right on top of a steel beam.
Having not been to the basement yet, the Detective determined to see if what he suspected was in fact the case. It was a quick trip to the basement. With his client in tow Detective Markanich turned the corner and made his way to the underside of the dining room.
This is what he found!
Just as suspected! While perhaps not the work of Hammerman, this was certainly the work of Sawman. HVAC guys have a tendency to, um, move things out of the way of duct work they want to install! This case was no exception. This is NOT "normal."
This floor was bouncing because the end of a floor joist was cut! And bouncing right on top of a gas line! Yikes!
And the next day the underside of the dining room would have been covered over completely with drywall!
After that it would have been very difficult to determine why such a bounce was present. And much harder to fix!
No wonder the builder did not give this purchaser much notice before announcing the drywall installation!
This reporter’s recommendation: Get a pre-drywall inspection! It is the only time you will have to inspect a house while skeletal! Home inspectors do not have X-ray vision! They may have a good sense of construction and location of things in a home, but the more experienced they are the less they are able to see inside walls. Take the hint…
Oh, Detective Markanich was able to find a bunch of other things which he suspects put off drywall installation a couple of days. The purchaser was, shall we say, grateful! As to the drywall installation? Well, curses, foiled again!
1 comment • Linda J. Marshall • August 16 2010 02:22PMREBLOGGED BY PRIOR WRITTEN PERMISSION FROM TRULIA reblogged by prior written permission from Trulia
7 Insider Secrets for Bargain-Seeking House Hunters 8 Posted under: Home Buying | August 9, 2010 1:40 PM | 5,720 views | 19 comments Email Alerts Send to a Friend Post to Facebook Post to Twitter RSS
Email Tara@Trulia
1. Get - and stay - clear on what "bargain" actually means. Learn the difference between the asking price and the fair market value of a home. Many buyers think a bargain is any sale price below the asking price. But a home's asking price is an indicator of the seller's intention, and can be roughly the same as, greater than or less than the actual market value of the home. In fact, a bargain is a home that you buy at a discount from the fair market value, or one you get with some other perks. If the list price is set high, a below-asking sale price could still be above-market, and if it's set low, you could pay more than the asking price and still get a great deal!
Also, get clear on what "bargain" means to you. Are you looking for the biggest home at the lowest price (i.e.,low price per square foot)? The lowest price in the best neighborhood? A home in move-in condition for the price of similar homes that need work? A home with all the furniture and electronics thrown in? There are many ways to skin the "bargain" cat.
2. ‘Regular' sales may present better bargain opportunities than foreclosures and short sales. Contrary to popular belief, individual home sellers have more leeway and, often, more motivation to accept a lower offer than bank negotiators do. (In a short sale, the bank is the ultimate arbiter of how low the seller can go.) The banks often must adhere to guidelines, including that they may only accept an offer X below the fair market value - many banks have a policy of slightly reducing the list price and re-market the home before taking a lowball offer.
Individual sellers have no such limitations, and often take bargain-priced offers because they must move quickly, or are otherwise motivated. Also, individual sellers have the ability to bargain on other transaction points, as well - you might pay the fair market value to an individual seller, but get them to agree to paint the place, complete the pest repairs and fix the furnace. Chances you'll get a bank to do that for you? Somewhere between slim and none.
3. Look for sellers who have demonstrated their flexibility on price. When you house hunt online, don't limit your search criteria to beds, baths and square feet. Search for price-reduced homes or, at the very least, sort and prioritize your search results by the dollar amount or percentage by which the price has already been cut.
These discounted digs might already be a bargain, and in some cases, the sellers might be willing to deal even more!
4. Find a motivated seller - look for homes with longer-than-average Days on Market (DOM). Talk with your broker or agent and have them educate you about the average number of days a home in your area stays on the market. Homes that are lingering on the market for much longer than that may hold the potential for negotiating an even deeper discount, as their sellers might be very, very antsy and ready to take even a below-asking offer.
5. Don't insult the seller. It might feel like you're an ace wheeler and dealer when you make a lowball offer on a home for sale. Buyers can get bravado, like, "Ha, Seller, you want X? Well, I'm only paying X minus 40% - deal with it." Or, you might think, "I'll offer you 40% less, then we'll go back and forth 7 or 8 times, and I'll be happy with a 20% discount off the asking price."
But when those bottom of the barrel offers come in, both agents often detect a novice buyer at work. What they know - that you may not - is these two things. First, many sellers on today's market don't even have that much room to negotiate - they're already selling at a loss or very, very close to what they owe on the place. If they have to write a check to sell it to you, they'd simply rather not sell.
And, second, many a seller will simply refuse to sell to someone who they feel has insulted or disrespected them. That insult can be inferred from a lowball, below-market-value offer, or from a buyer's running commentary on all the things they would change about the place if it was their house. (Note - you already know not to rave and gush to the sellers when you see a house you like. Neither should you trash it.)
And it's not any different when it comes to institutional sellers, like banks selling foreclosed homes or approving short sales. They don't take lowball offers either - most lenders say a 10% discount off the market value - not the list price! - is about as low as they'll go.
6. Give to get. Have your agent interview the seller's agent to glean as much detail as possible about why they are selling, what their priority is (e.g., fast close or most cash?), and what the motivating facts are surrounding their sale (e.g., are they upside down, relocating for work, getting divorced, or any other facts that may be relevant)?
Then - especially if you're going to ask for a big chunk off the asking price - give them what they want! Try to close when they want, if possible (trust your real estate pro for a reality check on this - short escrows are nearly impossible for all but cash buyers these days). Go as-is, if it makes sense, without waiving the right and the time to obtain inspections. Decide what is most important to you, and if it's a discount, give the seller what they want on the rest of your the transaction's terms.
7. Sell yourself. Even when they have multiple offers, today's sellers will take a lower offer that looks certain to close over a higher offer that has no chance of closing. No seller wants to waste their time on a buyer/offer who can't close and then have to put their home back on the market 30 or 40 days later.
If you want a bargain, sell yourself and your offer - make a convincing case that you are likely and able to close the deal! Make sure your agent presents a polished, computer-prepared offer (if that's the standard in your area) - this demonstrates that they have the professionalism and up-to-date market knowledge it takes to get a sale closed these days. Make sure the offer package presented to the seller includes a polished, thorough loan approval letter, which confirms that your credit, employment, income and down payment funds have all been verified and approved for a home loan.
Also, make sure that your agent and loan broker emphasize features of your qualifications and your offer that render it more likely than average to close. Some sellers frown on FHA and VA loans, because they have a reputation of being tough to close. If you are approved for a conventional (i.e., non FHA) loan, your offer should say that. If you have a large down payment, or are paying cash, your offer and your agent should bring that to the listing agent's attention, too.
0 comments • Linda J. Marshall • August 12 2010 03:48PMREBLOGGED AND USED BY PRIOR PERMISSION FROM REALTY TIMES
REALTY TIMES 8/11/2010
Improve Your Credit Score by Carla Hill
Healthy credit scores have never been more important. As banks tighten their lending standards, it's important to have your score as high as possible.
A FICO score is a number, in general from 300 to 850, that is formulated from your payment history, including such things as amounts of money owed, length of your credit history, new credit accounts open, and how you have used your credit. Age, salary, race, education, and religion do not affect your score. You can't buy a good score; you can only build one over time by demonstrating that you are a responsible borrower.
To improve your credit score, start with these steps.
1. Pay your bills on time. This seems like a simple enough feat, but in hard economic times, more and more borrowers are finding themselves hard-pressed with the decision of what bill to pay. If you find yourself having a hard time paying bills, be sure to talk with the lender or company you owe. They may have programs or suggestions that will help you avoid having your bill sent to collections.
2. Don't let items go to collections. Once an item is sent to collections, your credit report will suffer. This ding will stay on your report for seven years.
3. Don't open other new credit lines when applying for a home loan. You may want the new car or living room set, but the home buying process is not the time to open multiple new accounts. This is a sure-fire way to temporarily reduce your credit score. If you do this before finalizing your mortgage, you many find yourself stuck with a higher interest rate.
4. Monitor your report on a regular basis for errors and cases of identity theft. Errors do happen. To get them corrected quickly, be sure to contact both the organization that provided the erroneous information, as well as the credit bureau. Identity theft happens. And it is your responsibility to identify it and address it!
5. Pay down credit cards. Carrying high balances on credit cards can severely affect your credit score. Think of it this way. If you have a grand total of $10,000 worth of credit limits available, but you owe $5,000 on all of your cards put together, you are using half of your available credit!
The best loans and mortgages are available to borrowers with FICO scores 700 and above. Experian, one of the major credit reporting agencies, reports that the average credit score is 693.
For a look at your credit report, visit the government sponsored site, myannualcreditreport.com. You may access your report three times a year free of charge.
Published: August 10, 2010
0 comments • Linda J. Marshall • August 11 2010 10:27AM 0 comments • Linda J. Marshall • July 31 2010 09:52AMReblogged with permission From HousingWire.com With HARP Stalling, MBS Researchers Don't Expect a New Refinance Wave by DIANA GOLOBAY 
Thursday, July 29th, 2010, 12:22 pm
Recent record-low mortgage rates are spurring investor fears that a government-sponsored refinance wave could push mortgage prepayment speeds within securitization back to 2003 levels.
Despite several options for facilitating a government-driven refinance wave - and the obvious benefit to homeowners - "excessive optimism or fear are both misplaced," as such a policy would face significant logistical challenges, according to commentary from the Credit Suisse (CS: 45.80 0.00%) fixed-income research team led by senior strategist Mahesh Swaminathan.
A government-sponsored refinance program would have to overcome the current market's "numerous bottlenecks" to refinancing, which include debt-to-income, documentation and cash constraints, as well as servicer capacity constraints, Swaminathan's team said. Such barriers have already blocked the Home Affordable Refinance Program (HARP) program from having much success, they noted.
According to the Federal Housing Finance Agency's February/March foreclosure prevention and refinance report, Fannie Mae and Freddie Mac refinanced nearly 291,600 loans through HARP as of March 2010 - out of a target of 4m - at speeds that remain largely stable:
A number of options for a new government-sponsored refinance wave include a national interest rate and a reclassification of refis as modifications, both of which may ultimately raise the cost of borrowing, according to commentary from the JP Morgan Securities (JPM: 40.21 0.00%) fixed-income strategy group, led by Matthew Jozoff.
"A refi wave is difficult to achieve, but if successful, it could reprice mortgages by several points, as base speeds surge, option costs rise, refi costs decline and spreads widen on supply concerns," Jozoff and his team wrote. "Longer-term mortgage rates could be nudged higher as investors demand wider spreads in compensation for greater refi risk."
Although the 2009-2010 refi "wavelet" so far falls short of the 2003 wave, Jozoff's team warned a 2003-style wave could materialize. Prepayments have been less than half the 2003 level, with the one-time exception of a buyout surge:
While a government-sponsored refinance wave could aid existing borrowers, Jozoff's team estimates it could push mortgage rates 25-50 basis points higher.
A national mortgage rate (say 4%) set by the government as a "nuclear option" would not go over well with the private sector and would be tantamount to the nationalization of the mortgage industry, Jozoff's team said. Although this option may have been discussed more heavily in the worst of the post-bubble recession, market conditions no longer warrant such a drastic measure.
Another option to encourage a refinance wave - the reclassification of refis as mods - would likely entail a government-sponsored incentive for each modification. Aside from proving to be a costly option, it would create a "deluge of new mortgages" that could push mortgage rates higher for new borrowers, Jozoff and his team noted.
Swaminathan's team at Credit Suisse suggested the Federal Reserve's balance sheet could be called in to absorb the surge of new mortgages in such a scenario, but this option is unlikely as it "faces huge opposition from policy makers and would complicate an exit strategy."
Write to Diana Golobay.
Disclosure: the author holds no relevant investments
0 comments • Linda J. Marshall • July 30 2010 10:05AM
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