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Refi quick you have a very small window to pull this off. Call or text me at 909-920-3500 or visit https://tdrmortgage.com/
Recorded March 27th 2020 (Corona Virus and Real Estate)
If your loan is above 4.25% you should consider refinancing (if you can) or cashing out to be liquid through this crisis. If you are an agent this video discusses maneuvering in a very very volatile environment and how to have success. Consumer – if you are in an active transaction or considering one pay close attention. Most loans will be gone for a bit, some for a very very long time. All loans expect tightening and time delays to close. Loss of Liquidity will cause massive losses and have a broad impact on the ability to continue to operate.Loans
Non-QM – Gone (bank statement and other non-conforming loan product)
FHA / VA – on way out – lenders coming out with new guidelines rapidly with regard to Fico, Debt Ratio (dti) and downpayment or (LTV). Loss of Liquidity may cause total fha-va freeze – standby for more info (est 4/15/20 loss of Govt loans)
Jumbo Pricing is way off (nobody wants these loans right now)
New Guidelines are a lot to digest, to be pro-active make sure you have photos of the interior in case the appraiser is unable to go inside. There will be different methods depending on the loan type, lots of variables to consider based on LTV, loan type, Fannie/Freddie, etc. So if it were me I would have photos on the ready.
NOT TO SHABBY on Vanilla Conventional Product (3-27)
Locked some good ones today CASH Outs at 3.625 (apr 3.71)
FHA Purchase 3.25% (APR 3.895)
VA JUMBO 3.625% (APR 3.990)
5% CONV PURCHASE 4% (apr 4.126)
Borrowers need to validate they will have a job in 6 months and their position will not be impacted by Covid (Period). This is a TDR Mortgage requirement as we have severe penalties for 1st payment default and not making the 1st 6 payments. Many lenders already have this in place at closing, all others will soon follow suit.
Look for lending to be extremely volatile moving forward, a perfectly good loan can fall out at any time, be prepared, be flexible and remember it’s not the Loan Officers fault, try to find solutions and operate with Grace and Kindness. 1 Loan can save a borrower a great amount of money and 1 loan helps your local businesses survive a bit longer before revenue shrinks ie; local title, local escrow, local loan companies, local appraisers, local Mortgage Companies, local support staff, local Real Estate Professionals.
WHAT YOU CAN DO
Let your Sellers know they have to be flexible and accommodate the buyer, it is officially a buyers market. Encourage Sellers not to wait to sell. Values will drop and won’t be any better at the end of the year or “in the Summer”. Unemployment is to great for a rapid rebound.
Buyers / People Refinancing
Delays are inevitable, if you have a locked loan under 3.75 I STRONGLY URGE YOU TO STAY IN PLACE AND BE PATIENT. IF YOU SWITCH LENDERS there’s a large chance your loan will not close and good luck finding a better rate. Stay in Place and listen to your loan Professional.
Seller Carries can be a solution for some sellers with equity.
I would be taking only conventional offers on my listing moving forward. (unless the FHA / VA situation changes.
Agents get 3 lending channels. Broker (TDR Mortgage) Direct Lender and Bank (tread lightly as they will be the hardest to maneuver channel) but have one anyway.
Thank you for tuning in today – please like or share this post. Go forward with Grace and Kindness. If you are employed please be sensitive to those who have lost their job. Many of these jobs will not be coming back. Stay Local, Support Local. Namaste.
Southern California Home Loan Expert, Teresa Tims, Vlogs to educate and help Consumers make an Educated decision when it comes to Home Loan Lending in California.
Call us today at 909-920-3500 or visit https://tdrmortgage.com
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2Nd Home Loan Mortgage Rates
I lastly chose a business that was providing a low rate of interest and also had an excellent track record. This regimen can feel useless however it’s not. Maybe, we will speak about this at a later date.
Merrill Lynch’s $8.4 billion write-down on home loan associated securities was a surprise to most analysts. Sadly, I believe more losses are coming. By my estimation, the subprime home loan disaster might be a $300 billion problem for home mortgage lenders and holders of mortgage-related securities, almost two times the size of the cost savings and loan crisis that unfolded in the U.S. in the ’80s and ’90s.
How They Earn a profit – Lenders earn a profit all four ways discussed above. They securitize, have fees, generate yield spread and service their loans. The benefit is they have all opportunities available and tend to be second-rate on all of them. Simply put, best mortgage lenders for first time buyers Lenders do not require to make all of the revenue in fees; they can hold the loan and cut the fees. Or they can sell it in a sensitization package and recoup any losses they might have sustained in the loan. Simply put, they have full discretion to do any loan that makes sense.
When you walk into a bank in search of home investing assistance, do you ask a bank officer about his/her experience in the field? Not most likely! Whether the bank officer possesses the experience required to assist you in this special matter, they will wish to get your business. This problem will not occur with brokers. Each home loan broker has existing understanding in his field; all you need to do is look for the prospect and pick the best one. A look here broker professional can give skilled service customized to your requirements.
Your credit might also have an influence on the interest that you are being provided. Mortgage lenders are permitted to charge practically any rate of interest that they like. This rate is typically within a series of four to ten percent. Similar to a down payment, lots of mortgage lenders usage a rates of interest to provide themselves security. Many individuals, with a bad credit ranking, discover themselves being charged more interest than someone with a good credit ranking.
Lending institution Charge – most loan providers and banks won’t charge any kind of loan provider or extra fees. Some alternative loan providers (ex. trust companies) providing extremely specialized or high ratio financing might charge a loan provider charge that is either subtracted from the home loan cash they provide you, or sometimes the charge is included to the home loan. Once again, this will be disclosed in advance by the loan provider and your broker.
Some companies estimate extremely low rates and bring in lots of applications, however they don’t let you Lock-In until 15 Days prior to loan closing. If you use for a Home mortgage through a business with that policy, you will get screwed. When it’s time to Lock-In your Home Loan Rate, you will pay an “overage” that will go straight to the Mortgage Officers pocket. You will either pay more points for the rate you asked for at the time of application or you will get a greater rate. In either case, you will get screwed and the Loan Officer will get a fat overage included to his commission.
As you can see, when you come down through all of the paperwork and questions, you’ll discover that requesting a mortgage isn’t as challenging as you imagined it was. Just be truthful and a knockout post all of the info the loan provider needs, and you’ll be living in your new home prior to you know it.
They securitize, have fees, generate yield spread and service their loans. You will require to offer 2 years worth of income tax return to prove it. This creates more queries on your bureau, which usually lowers your FICO rating.