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Affording more home!
Doing first time home buyer loans for the past 13 years the number one question I run into is “how do I afford more home?” My response is always the same “the question you should be asking is how do I afford more home with staying within my confort zone?”
Our Fairway 210 program is just the solution to that problem. Schedule a consultation face to face of over the internet and learn how!
Why are home loans harder today?
People believe that banks give you a mortgage and put that mortgage in there vault, that just isn’t true. Most of the time let’s just say Bank of Somewhere gives you a mortgage and then they sell it to Freddie mac or Fannie Mae and Bank of Somewhere just becomes your servicer which collects payments and pays taxes and insurance.
Now you see Fannie reporting something like a 18 Billion loss last quarter so what that means is people are not paying back their mortgage and Fannie loses money on a bad bundle of loans. So, Fannie does some research and finds the bad bundle of loans are made up of loans that were done with below 620 credit scores and Fannie says ok no more loans will be done with 620 fico scores and all the banks have to follow suit because they have no one to sell the loan to.
If banks can’t sell the loan to someone they will not do it.
Fannie bundles these loans and sells them on the open market and if nobody wants to buy them well then Fannie doesn’t want to do them either and the snowball starts. No buyers=no mortgages and that is a big reason why the Jumbo market is so slow right now, very few buyers of those loans.
Until Fannie and Freddie ease up on the credit standards for a mortgage look for more of the same to clean up the mortgage market so people will start buying again.
$8,000 is no big deal?
I heard today on a conference call that 47% of Americans don’t even know that they will get $8,000 in tax credits next year if they buy their first home now. Another 27% don’t beleive that $8,000 is a big deal. So let me get this straight people will start working out of college for $30,000 a year after they just spent $125,000 on college but they don’t think that 27% of their income in the form of a tax credit is a big deal. This country has lost it’s mind.
Pre-qaulified vs. Approved
One of the most common questions we get from a first time home buyer is asking to be pre-qaulified. Really what they should be asking for is to be pre-appoved.
Being pre-qaulified is as simple as asking 10 questions over the phone with no proof of anything. The problem with this is the lender never verifies income, assets or credit.
With a pre-approval we have our clients verify assets with 2 complete bank statement, verify income with 2 pay stubs, 2 years tax returns with w-2′s and we pull a tri-merge credit report verifing all credit history. We also cover any bankrupcy or divorce history during this approval as well.
With a pre-approval we want your loan to go through underwriting up front to take away the possiblity of any potential problems.
Doing the approval up front will save time, money and make your loan stress free when buying your first home.
So do yourself a favor and ask for a pre-approval not a pre-qaulification.
Happy First Time Home Buyer
Katie,
I would recommend Matt and Fairway Mortgage to anyone looking to buy a home. Matt made my first time home buying an absolute breeze. Matt and his team kept in close contact with me letting me know how my loan was progressing. My closing took less than an hour which my agent said was a very rare in this market! I have and will recommend to all of my friends looking to buy their first house to do Matt’s up front meeting to learn the process before buying their first house.
H. Brodie
Schuamburg