Tag Archives: lenders

Money Monday: Shopping for Interest Rates

While interest rates have remained at low levels, many analysts are predicting that mortgage rates will be heading upward. With this in mind smart homeowners are rushing to lock in the low rates. The following tips will help interested homebuyers in shopping for the best rate.

mortgage rates and property taxes

How to shop: If you simply call up and ask a lender for interest rates the lender can tell you almost anything. One lender might offer a floating rate, while the next would offer you a forty day rate. Instead, before you call up you need to know two things: how many points you want to pay and how long you want to lock in the rate. You also want to call all the lenders on the same day. This way you will get a common basis of comparison for the different quotes.

Getting a reliable quote: Beware of lenders who promise unreasonable low rates. This does not mean that lenders are unreliable; however there is an incentive for the lender to fudge the quote in order to gain your business (the bait). Then when you go in to fill out the paper work the lender will change the rate on you (the switch).

How to Really Shop for a Lender: The best way is to get a referral, then shop other lenders. Do it properly, telling the lenders how much you are willing to pay in points and how long you want to lock in the rate. Make all your calls on the same day. Tell the lender you have filled out an application and that you will fax it in, so the rate has to be something he can deliver.

Money Monday: Who’s checking your credit?

You may be surprised….

According to the Consumer Federation of America’ research, it’s not just creditors who are looking at your credit scores.

You may not realize this, but creditors are only required to inform consumers that their scores are being checked when consumers have one of the three happen:

  1. They apply for a mortgage
  2. When they haven’t received the best loan terms
  3. When they are denied a loan

Who else may be looking at your credit? 

  • Electric utility companies
  • Cell phone companies
  • Landlords
  • Home insurers

Who is checking your credit score

This infographic is from the CALIFORNIA ASSOCIATION OF REALTORS at CAR.org.

Money Monday: How the mortgage process just changed

It just got a little easier to navigate the complicated mortgage process.

New disclosure rules went into effect in the mortgage world Saturday that require lenders to provide home buyers two new forms that clearly detail their loan terms…

The rule, formally known as the TILA-RESPA Integrated Disclosure rule, reduces what used to be four forms from two different government agencies to two forms: the Loan Estimate and Closing Disclosure.

Here’s what buyers can expect:

Comparing different loans

loan terms

Lenders have to provide potential home buyers a Loan Estimate form within three days of a submitted application.

The three-page form details the terms of a potential loan including: amount, interest rate and whether the figures can change after closing…

This article is from CNN Money. Read more at CNN Money here.

Lowest Amount of Foreclosures Since the Great Recession

The rate of foreclosures goes down

foreclosureNow at the lowest point since the Great Recession, foreclosures in the San Diego County region were only at 121 properties last month (September 2014) Continue reading

What are Loan Points?

mortgage rates and property taxesWhen shopping for a mortgage rate, it is necessary to pay attention to the details. Loan points are often overlooked as buyers are fixated on getting the lowest interest rate; however they are an important point to consider when picking your mortgage.

Loan points are Continue reading

New lending standards for homebuyers

loan modificationsIf you’re considering buying a home this year, but need a mortgage to do so like the majority of home buyers, then perhaps these new mortgage rules will help you pay back your loan.

As of January 10th, the Consumer Financial Protection Bureau has begun implementing new lending guidelines that, according to U-T San Diego’s article on the topic, “federal regulators say will protect against the risky lending practices that powered the housing bubble and caused a huge collapse in home prices that led to the Great Recession” Continue reading

Buyer demand continues into October

first-time-home-buyer

An analysis of listings data released by Realtor.com suggests that homes continued to turn over quickly in October, in defiance of seasonal patterns and in spite of price increases driven by inventory shortages in many markets.

The 1.9 million homes listed on realtor.com during October had been on the market for 94 days on average — up slightly from 93 days in September, but down 11.3 percent from a year ago, indicating demand for housing remains strong. Realtor.com rival Zillow reported a similar trend. Continue reading

What does FICO have to do with my Home Loan?

ficoYour FICO score is the yardstick by which most lenders measure your credit worthiness. The major credit bureaus keep track of loans that you have taken out in the past and how well you managed this debt. A high FICO score indicates that you have been responsible with the credit extended to you and will reflect positively on applications that you submit, while a lower score indicates that you have had credit issues in the past. Continue reading