Pre-Qualifictaion
Party like it’s August…2015
The last time major changes were implemented per the Dodd/Frank Act, the real estate world was anointed with appraisal management companies and the “new” Good Faith Estimate. Today, although it is better than it was in 2012, we are still not sure where appraisal management companies hire their appraisers… trolling the intersection of Interstate 10 and 7th Ave?
Sheriff of Ugly Mortgages
The big, bad sheriff of lending, The Consumer Protection Financial Bureau (CPFB) thought it built a tamper proof fence corralling “bad” loans by holding the lending industry hostage and implementing tough approval guidelines. The old saying if you build a tall fence, someone will build a taller ladder, has proven true.
WHAT DOES WINE HAVE TO DO WITH INTEREST RATES
First, who or what sets the mortgage rates?
• The 10 year U.S. Treasury notes or bonds. They are sold to pay for the U.S. debt.
• 10 year treasuries are considered one of the world’s ultra-safe investments.
• Demand for the bonds is higher in times of financial turmoil, global unrest and icky economic news.
6 MORTGAGE MYTHS
Myth 1 – Automated Underwriting Systems (AUS) are optional.
Myth 2 – Private Mortgage Insurance (PMI) is good for the borrower.
Myth 3 – VA loans are too strict.
Myth 4 – FHA acquired dementia last year and forgot their mission statement to borrowers and increased their monthly mortgage insurance to ridiculous levels.
Myth 5 – There is no reason for borrowers to use FHA anymore.
Myth 6 – A good credit score can guarantee you a loan.