Archive for the 'Mortgage Approval Process' Category

Rates are even lower and tax credits may be extended

July 1st, 2010

Written by Frost Mortgage

It’s a busy week in the news for potential homebuyers.

First, both 15-year and 30-year loans hit record lows for the second week in a row.

Second, as Reuters reports, the tax credit extension has passed a key hurdle:

The House backed by a vote of 409-5 a measure to extend the closing deadline to September 30 for buyers who already met the April 30 deadline to have a signed contract. The current deadline requires those buyers to close the transaction by June 30 to receive the $8,000 tax credit for first-time homebuyers.

The measure must also go before the Senate for approval.

Rates are dropping and home sales are also down.

What this means is an exceptional window of opportunity for those looking for a new home. Please contact one of our loan officers today and allow us to help you find out what is available to you. We think you’ll be glad you did.

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#Albuquerque among MSAs removed from “distressed” list

June 22nd, 2010

Written by Frost Mortgage

Good news for the Duke City: Albuquerque is one of 105 metropolitan statistical areas (MSAs) to be taken off the PMI Distressed Markets List.

As MortgageDaily.com reports (subscription required), the change is part of a spate of positive news:

“Mortgage insurance companies are easing guidelines, increasing loan amounts and eliminating declining market status for many metropolitan areas. The relaxed standards are emerging as the sector is seeing improved conditions.”

Other areas removed from the list included Chicago, Los Angeles, New York City, Boston, Seattle and Washington, D.C.

The Federal Reserve Bank of San Francisco describes Private Mortgage Insurance (PMI) as “extra insurance that lenders require from most homebuyers who obtain loans that are more than 80 percent of their new home’s value. In other words, buyers with less than a 20 percent down payment are normally required to pay PMI.”

Here at Frost, we’re happy to see positive changes in the market that will make it easier for qualified buyers to access this invaluable resource.

If you are looking for a home loan for your next life move, please call us today and let us help you.

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Final days for ’seller concessions’

June 1st, 2010

Written by Frost Mortgage

The writing is on the wall for funds for homebuyers from sellers that can pay for some services and taxes in the transaction. As the Washington Post explains,

Say you’re buying a $200,000 house. If you are using FHA [Federal Housing Administration] financing under current rules, you can structure the contract so that the seller agrees to pay at settlement all closing costs and even the cost of some needed repairs, up to 6 percent of the price, or $12,000. On a $400,000 house, allowable concessions go to $24,000. That’s huge, especially if you have to struggle to come up with a 3.5 percent down payment and you’re not sure where you’ll find the closing and repair money.

Contrast that with using Fannie Mae or Freddie Mac conventional financing, in which seller concessions generally are limited to 3 percent. For many buyers, the extra negotiating flexibility built into the FHA program makes the choice of programs a no-brainer.

Sometime this summer, though, seller concessions will be cut to a maximum 3 percent. The precise timing is unknown because the announcement had not been made in the Federal Register, but the message is clear: Act now if the concession affects your deal.

We can help. Frost Mortgage is a “Full Eagle” FHA expert. Please contact one of our experienced loan officers today and we’ll quickly help you work through any questions. Because at Frost Mortgage, we don’t just close loans–we open doors.

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Home loans: Many leap without looking

April 29th, 2010

Written by Frost Mortgage

As buyers rush to take advantage of the homebuyer tax credit, an important fact is being highlighted: Moving too quickly can be costly. You may race to get the tax credit but end up losing more than that in a deal you haven’t fully thought through.

A survey on homebuying conducted by Zillow and reported on by the New Mexico Business Weekly found that

borrowers who obtained a home loan in the past five years spent just five hours reviewing their options and got just three quotes. Thirty-one percent spent two hours or less, despite the fact that a home is one of the largest investments people make in a lifetime …

If you’re feeling rushed or thinking you may not have all the information you need to make a smart choice, please contact one of our experienced loan officers for assistance. You’ll get sound, professional advice and information to help you make the best move, because at Frost Mortgage, we don’t just close loans, we open doors.

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Owners get help in choosing short sale over foreclosure

April 23rd, 2010

Written by Frost Mortgage

Homeowners will now have
incentives to agree to a short sale (the process of selling for less than is
owed on a home) thanks to new federal rules instituted earlier this month. A
foreclosure hurts an owner’s credit rating for longer than a short sale will,
and the new rules make the choice easier by quickly setting bounds on the
minimum the home will be sold for. Lenders win because they lose only about 19
percent on a short sale as opposed to 40 percent on a foreclosure. Owners also
receive more in moving expenses and potentially in closing costs through the
FHA.

As experts in the field of FHA loans, we pay close attention to these
developments. Are you a Broker/Owner or Producing Branch Manager who is as
interested as we are in these issues? If so, take a look at Frost Mortgage for
net branch opportunities. We think you’ll find that
our Branch Partner
opportunities are the best in the business. We look forward to talking with
you.

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Wait time halved for some distressed borrowers

April 19th, 2010

Written by Greg Frost

Great news for mortgage shoppers who have been hampered by a deed-in-lieu of foreclosure transaction–Fannie Mae is potentially cutting your hold time in half.

You’ll have to put 20 percent down, but if you can, Fannie says you don’t have to wait four years before getting a new mortgage as was previously required, but only two years. That should make homeownership a possibility again for a whole new group.

Here at Frost Mortgage, we’re always excited to see a new way to help borrowers, because our business isn’t just closing loans, but also opening doors. We’ve been doing just that since 1991, and we make it our specialty to understand all the ways we can help. So if you’ve been held back by a deed-in-lieu of foreclosure transaction and you’re wondering whether the new rules could help you, please call us today.

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3rd-party e-signatures now OK for FHA insurance application

April 13th, 2010

Written by Frost Mortgage

The department of Housing and Urban Development (HUD) will now allow electronic signatures on third-party documents as part of the Federal Housing Administration (FHA) mortgage insurance application.

In a mortgagee letter released last week, HUD said the policy is effective immediately for forward mortgages and Home Equity Conversion Mortgages. The letter continued:

Third party documents are those that are originated and signed outside of the mortgagee’s control, such as a sales contract. An indication of the electronic signature and date should be clearly visible when viewed electronically and in a paper copy of the electronically signed document. Mortgagees must employ the same level of care and due diligence with electronically signed documents that they would for paper documents with “wet” or ink signatures. Additionally, mortgagees are reminded that the origination case binder must be maintained in either hard copy or electronic format for two years from the date of endorsement [HUD Handbook 4000.2 REV-3].

These changes should make the process simpler and quicker for all involved. If you’re in the market for a mortgage, please consider Frost. Since 1991, from California to Florida, we’ve been doing more than just closing mortgages–we’ve been opening doors.

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Reverse mortgages: What are they?

April 13th, 2010

Written by Frost Mortgage

Many people don’t realize that Frost Mortgage’s expertise also extends to “reverse mortgages.” In fact, it’s one of our specialties, and we have a full-time staff member dedicated to this unique program.

So, what is a reverse mortgage? As the department of Housing and Urban Development (HUD) explains:

A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash. The equity that built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence.

As a full eagle licensed FHA lender, Frost Mortgage is a great choice for your reverse mortgage questions. Please, contact us today and find out why we don’t just close mortgages–we open doors.

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Today: FHA upfront premiums rise for mortgage insurance

April 5th, 2010

Written by Frost Mortgage

The Department of Housing and Urban development is reminding the mortgage industry that, starting today (April 5, 2010), an upfront mortgage insurance premium of 2.25 percent will be collected “for purchase money and refinance transactions, including FHA-to-FHA credit qualifying and non-credit qualifying streamlined refinance transactions.”

HOPE for Homeowners and Home Equity Conversion Mortgages will be charged a 2 percent premium, according to Mortgagee Letter 2010-02.

Do you thrive on news like this? Are you a top producer? Consider joining with the best in the business — Frost Mortgage — and becoming a Branch Partner.

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Good Faith Estimates and RESPA: Don’t lose sight of the big picture

March 8th, 2010

Written by Greg Frost

The Real Estate Settlement Procedures Act (RESPA) that took effect earlier this year has attracted a lot of attention both from the industry and from borrowers. The act requires that “loan originators provide borrowers with a standard Good Faith Estimate that clearly discloses key loan terms and closing costs and that closing agents provide borrowers with a new HUD-1 settlement statement.”

After several months with the new protocols in place, we have some perspective on the changes. From the buyer’s point of view, the new rules mean a lot more paperwork for a relatively small amount of money, since differences in Good Faith Estimates are rarely significant. And from our perspective, RESPA looks like a Band-Aid solution that doesn’t give buyers credit for their intelligence.

We pride ourselves on following the strictest standards, and we ensure that our people are up on all the latest developments, but we see the chance that too much focus on minutia could make us lose sight of the forest for the trees. Buyers, the details do matter, and you need to get the facts from a reputable broker such as Frost. But fear about relatively small amounts like these shouldn’t keep you from getting on with your lives. And those in the mortgage industry, you need to maintain a focus on what really matters–helping people get the funds they need to make society run, just as our industry has done for most of the last 200 years, by providing sensible, reasonably priced products that fit the need.

If you have any questions at all about what all of this means to you, please contact us today. We’ll be happy to help.

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