When it comes to real estate transaction issues, there is a lot that can happen. We have all been there, whether you are a Realtor, Lender, Title, Buyer/Seller. One of my lender clients sent me this amazing list and I felt that it could help my readership as well. I hope this is helpful regardless of who you are in the home buying/selling process. The goal of all parties is to reduce any real estate transaction issues and get to closing smoothly and on time! Enjoy!
Have you heard of a “bridge loan?” Many people have, but don’t know exactly what it does or how to get one. A bridge loan product is designed to help people “bridge” the equity from their current home to the next. Not all mortgage lenders offer residential bridge loans because of risk, and the fact they are not as profitable to the company. Speaking with Jay Richardson, who is a Senior Loan officer with MVB Mortgage in Fairfax, Virginia…he has said that not only do they offer bridge loans in the DC metro area, but they offer a host of other temporary loan options that have helped hundreds of clients prevent the “bad” timing issues that can come up when a client moves from one home to the next.
Today I’m doing something I don’t normally do, and that is have a “guest blogger” on the website. There are a lot of consumers out there looking for specific mortgage information when it comes to buying a home or refinancing. I reached out to my buddy Jay Richardson with MVB Mortgage in Fairfax, VA and had him provide some top mortgage questions and answers that would be the most helpful to the consumer seeking this information. Jay is very insightful, as he is consistently ranked in the “Top 200 Loan Officers in the USA.” Hopefully, these top mortgage questions and answers are helpful and provide a better understanding of your loan options.
Take it away Jay!!
Getting up to date CFPB information is a good thing, especially when it comes from your trusted Title Company partner. Stewart Title has taken the lead in our industry at educating our Realtor and Lender partners on this issue that will effect everyone starting October 3rd 2015. Usually on this website I’m creating all the content myself and pushing it out to you, but this time I’m posting some very good CFPB Information to review regarding the new mortgage disclosures and any delaying of settlements.
I’m just going to come right out and say it…I feel bad for Loan Officers. Why you ask? Well, many people blame them directly for our Foreclosure and Short Sale crisis that has plagued our great country for the past 5 years or so. There were thousands of people out there that did a short sale or foreclosure (maybe even you). So, many times when people hear the word “Loan Officer” it makes them think something negative which is not the case. Loan officers are needed and essential to the home buying process. They are the gatekeepers to obtaining a home loan when buying a house and also taking advantage of a home refinance with low interest rates. As consumers and Real Estate agents you need to know HOW to find a good loan officer in Northern Virginia. Yes, they are out there…you just have to know where to look and WHAT to look for. Here is “in my opinion” the top 3 traits of a good loan officer in Northern Virginia.
In today’s market we have seen a shift with rising interest rates. This rise has occured over the last 30 days or so due to the Federal Govt deciding to “taper” off the bond buying program that has caused rates to remain below 4% for much of the last 12 months. The rising interest rates have had little impact on home buyers in the Northern Virginia/Washington DC market as the lack of inventory is causing people to still purchase homes as fast as they can find their way onto the market. Many potential home buyers are still wondering how this will affect their buying power going forward? This is a great question! Here are why it is still a great time to purchase a home with rising interest rates!
Do you have an FHA Loan? An FHA Loan is a mortgage loan you might currently have on your home. If you do, you should refinance your FHA loan before June 3rd as some changes are on the way that could cost you more money. The main selling point of FHA (Federal Housing Administration) is the down payment is only 3.5% vs 10%-20% on a home. This allows more people live the “American Dream and own a home. The main kicker of FHA is that you must all carry MI also known as Mortgage Insurance. This is a an extra fee you have to pay on top of your mortgage payment since the Federal Government is “insuring your loan.” This fee helps soften the blow if you ever default on your payments and stop making them. This is a great loan to have but FHA’s Mutual Mortgage Insurance Fund is announcing a$16.3 billion deficit for the fiscal year of 2013. This doesn’t mean that FHA is going away but it does mean that some new guidelines are taking a affect starting June 3rd that can have impact on you…the homeowner.
2012 has ended and a new year has began. People like to create New Years resolutions and hopefully stick with them. It seems that more and more new years resolutions revolve around saving money, adding more to the IRA or 401K, paying off debt(s) and becoming more financially secure. Makes sense especially after our country went through a huge economic down turn at the end of 2007 that we are still feeling the effects. There is one New Years resolution you can get out of the way in January that not only will help you lower you bills but make you more financially secure. What is it you ask? Refinancing your Northern Virginia home….your largest asset. The process is not difficult…lets walk through how to get started to lower monthly expenses:
You may not know it but we are currently experiencing a time in Real Estate that has never existed before…EVER. The market was so hot in 2004-2006, then the market crashed in August in 2007 with interest rates in the 6.5% range. Housing values took a huge dive! Some markets were hurt more than others. At the time I was working as a Title Sales Rep for a National Title Insurance Company in Phoenix, AZ. If you know anything about the Phoenix market…the property values went up 47% in 2005 alone! Well what goes up must come down and when the market crashed and the subprime market went bye bye so did the home values. Let me give you a real life example: In July 2006 I bought my first home…a condo next to the Raven Golf Course in Phoenix for $145,000. I was happy with my purchase and no issues making the payments. By January 2010 the value of my property was $35,000! Yes…$35,000. So I did what 75% of the housing market did in Phoenix, I listed my home as a short sale and said…”See ya later!” I know I made the right choice knowing the value might not ever return to what I owed on the property. So back to my original statement…we are in a weird place in Real Estate…a time that has never existed before that presents SOOO many business opportunities for Real Estate agents AND Mortgage Lenders. Here is why if you are considering do a refinace or short sale…might be good to do both. Let me explain…