Federal Law requires the Loan Originator to provide you with an Initial/Preliminary ‘Truth-in-Lending Disclosure’. After you provide your social security number to get a credit report, this is the next step. Do not give money for an appraisal, sign any document or provide any more information until you get this disclosure. This dislosure will show you the interest rate, payment, total finance charge, total payments and the Annual Percentage Rate you will be paying.
Archive for December, 2011
Understand how the interest rate you pay is determined. In the old days, bank executives would meet once a week and decide the mortgage rate they charge until the next meeting. Then you could go the entire week knowing what the rate is. Now, those bankers sell the mortgage loans to wall street investors on a daily basis. Wall Street determines the rates based on the minute by minute trading. Your banker will ask you if you want to lock in the rate right now or wait a day or two. Plus the higher your credit score, the better rate you will be offered.
Credit score: a good score is the key to obtaining a mortgage. Get copies of your credit scores and history from the three main credit reporting bureaus. Make sure there are no errors or issues to resolve before applying. Most lenders require a minimum credit score of 680 to comply with Fannie Mae and Freddie Mac’s guidelines. Federal Housing Administration (FHA) allows for lower scores as low as 620.
why all the blogs about economic data? The economic data is an important step that indicates whether or not buyers are confident and ready to buy real estate. Just like selling your house isn’t as simple as putting a sign in your yard or calling an agent to help. Finding a buyer is a process, a step by step process. And you can do it. FSBO.com is a great resource to begin with. Online exposure, unlimited photos, signage, brochures, access to legal forms, mortgage companies, etc.
today, the Labor Dept reported new claims for jobless benefits hit a 3-1/2 year low. University of Michigan announced the overall index on consumer sentiment rose to highest in six months. The index of U.S. leading indicators rose again in November. All good signs for a real estate rebound.
homes sales reported by the National Association of Realtors were revised down each year since 2007. For 2010 purchases were revised down to 4.19 million, down 15 percent from a prior estimate of 4.91 million
Up 9.3% to a 685,000-unit annualized pace, according to the Commerce Department report. It’s the highest pace of starts since April 2010. Now we wait to see what the resale market reports for November.
Big gains in the November traffic of perspective buyers, according to the National Association of Home Builders. Not since the spring of 2008 have the nation’s homebuilders felt this good about the potential for new business. An industry association survey measuring builder sentiment rose for the third straight month in December.
according to RealtyTac and banks issued fewer first-time default notices. Banks are selling more property and foreclosing on less. This is exactly what is needed to get housing market going again.
and you can read numerous articles about the National Association of Realtors big mistake. Existing home sales numbers, released monthly, will be revised down for the past five years on Dec 21st.
Chief economist Lawrence Yun said the database NAR uses to track existing home sales, the Multiple Listing Service (MLS), has led the real estate agency to over-count existing home sales. The MLS database only includes home sales listed by realtors, and excludes homes listed by owners, providing a very narrow view of the market. And because people are using realtors to list their homes instead of selling them independently, realtor-listed sales numbers have become artificially inflated, said Yun.