Recently Fannie Mae updated their guidelines for rental income, including the addition of Rental Income Worksheets for the lender to complete to help make sure the rental income is calculated correctly. How much rental income may be used and how it is calculated will depend on when the borrower obtained the rental property, when rents were collected and what how many units there are with the subject property. Underwriters are looking the likelihood that the rental income will continue as well as the losses too. If your rental is producing a net loss, that will factored into your qualifying ratios.
Don’t be naughty to your preapproval status over the holidays
November 18, 2014 by Leave a Comment
![iStock_000004639657XSmall[1]](https://i0.wp.com/mortgageporter.com/images/2014/11/iStock_000004639657XSmall1.jpg?ssl=1)
If you are currently preappoved for a mortgage to buy a home or are considering getting a mortgage in the New Year, what you do now with regards to your credit and income may impact your preapproval status.
A mortgage preapproval is based on information provided at the time of the pre-application. It is only valid assuming that the information provided at that time has not changed. You may not be aware that you’ve done something that may have jeopardized your preapproval until a month or two later when you’re getting ready to make an offer on a home and then learn you’ve been Scrooged.
What May Impact Mortgage Rates this Week: November 17, 2014
November 17, 2014 by Leave a Comment
This morning, Japan announced their GDP (gross domestic product) continues to decline, giving US mortgage bonds a slight boost. This week has a lot of economic indicators scheduled to be released that could impact the direction of mortgage rates. Keep an eye out for data that reveals inflation, as that will cause mortgage rates to trend higher.
Currently mortgage rates are continuing to improve (see below) compared to last week’s mortgage rate post.
What May Impact Mortgage Rates this Week: November 10, 2014
November 10, 2014 by 1 Comment
This is a short week with Veterans Day on Tuesday (bond markets will be closed) and a light economic calendar. Rates are improved compared to what I quoted last Monday.
- Tuesday, November 11, 2014: Veterans Day.
- Thursday, November, 13, 2014: Initial Jobless Claims
- Friday, November 14, 2014: Retail Sales; and Consumer Sentiment (UoM)
The 2014 Outstanding Loan Originator is…
November 9, 2014 by 3 Comments
I am honored, humbled and amazed to be a finalist in three categories at this year’s Business and Humanitarian Awards Gala, which took place on Friday. This annual event is organized by the Washington Association of Mortgage Professionals to recognize Washington real estate professionals (mortgage, real estate brokers, title and escrow) who are the epitome of their profession.
To receive the award for Outstanding Loan Originator was a complete surprise to me, despite being a finalist. I wish I would have prepared something to say when the award was presented. Between the shock, the bright lights and the 200 plus glamorous faces staring up at me, I was almost rendered speechless.
Reduced Down Payment Conventional Loans may require Compensating Factors
November 7, 2014 by 1 Comment
Mel Watt, Director of the FHFA, has released his prepared remarks for the National Association of Realtors Conference. In his remarks, he addresses the lower down payment options that should be available soon with conforming mortgages and that they will require compensating factors.
Home Buyers Seminar in Northgate
November 5, 2014 by Leave a Comment
I will be teaching a home buyer class in Seattle with Jim Repppond of Coldwell Banker Danforth on Saturday, November 15, 2014 at the Coldwell Banker Danforth’s Seattle office, which is located just south of the Northgate Mall.
The class is sponsored by the Washington State Housing Finance Commission. Students who attend are eligible for programs like Home Advantage or House Key Opportunity (the Washington state bond program) or Freddie Mac Home Possible. Students are also eligible for various down payment assistance programs and MCC (mortgage credit certificates).
If you are considering buying a home with your spouse, partner or friend, they will need to attend the class with you to qualify for the programs. You do not need to be a first time home buyer to qualify for many of the mortgage programs. And of course, you’re welcome to attend if you’re not interested in down payment assistance programs and you just want to learn more about the home buying process. [Read more…]
What May Impact Mortgage Rates this Week: November 3, 2014
November 3, 2014 by 1 Comment
Black Knight Financial Services says at least 7.4 million mortgages should refinance, due to where rates are today and looking at borrowers with current notes at 4.5% and above. This may also be a good time to refi into a conventional mortgage if you have an FHA mortgage with a rate in 3% range with expensive FHA mortgage insurance.
Last week the Fed formally wrapped up their aggressive buying of mortgage backed securities (QE) which helped to keep mortgage rates at such a low level over the past couple of years. This was not a surprise to the markets as the Fed had continuously reiterated their plans to end QE in October. Mortgage rates seem to be slowly trending higher.
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