House Still Buyable or Refinanceable?
House Still Buyable or Refinanceable? There has been a great deal of media attention placed on the mortgage and housing industry lately. It all started with the sub-prime debacle and progressed into a whirl wind of declining housing values and appraisal issues. The declining values prohibited many borrowers from being able to refinance because their value plummeted below the original loan amount or acceptable loan to value guidelines in today’s lending environment. The bad news, bore more news but some solutions. Its too soon to tell how effective all of these programs will be in the end but for now, understanding them better makes us more informed consumers. I have provided some valuable links to information regarding these programs below.
If your considering a home purchase or refinance, lenders will have several questions for you up front. In my opinion, these will help you to be better prepared for discussing your options .
Mortgage Planning Questions:
1) Is your request for ____ primary residence ____ second/vacation home ____ investment property?
2) If financing is for your primary residence, what is the best estimate for how long you might live in this home?
____ 1-3 years ____ 3-5 years ____ 5-7 years ____ 7-10 years ____ 10+ years
3) How many years do you think you will have this loan?
____ 6-12 months ____1-3 years ____ 3-5 years ____ 5-7 years ____ 7-10 years ____ 10+ years
4) What about impounds and escrow? ____ Yes ____ No (unless required)
5) How much do you plan on investing into the purchase of this new home?
6) What is a comfortable monthly payment including taxes and insurance?
While the media continues to focus on mostly the negatives, there are some positive points to consider today; Declining home values and historically low rates have made this year a great time to buy! Banks do still have money to lend and while some loan program guidelines have tightened, there are many loan programs available with flexible financing terms for qualified borrowers. Declining values makes the purchase price more attractive and while some are stepping up and others are stepping down- everyone needs shelter!
Uniform Residential Loan Application - A standard application you will need to fill out when applying for a home mortgage
Supporting Documentation – Items that may be required when submitting an application for approval.
Comparing terms and conditions – Identifies the fee’s associated with financing a home.
Does it make sense to refinance?
Does Fannie Mae own your mortgage: Fannie Mae Lookup
Does Freddie Mac own your mortgage: https://www.freddiemac.com/corporate/
General guidelines for HARP loans: http://jimhungerford.com/2009/07/21/home-affordable-refinance/
