Monday, October 24, 2011

President's New Initiative to Help Homeowner's Refinance

Posted by Mortgage Bank at 12:26 PM 0 comments
President Obama is unveiling a new program to help homeowners that want to refinance but are underwater. 

Here are the guidelines:

1) Mortgage must be owned or guaranteed by Freddie Mac/Fannie Mae.  
     - This is commonly called a "Conventional" Mortgage.
     - FHA, VA and Rural Development (USDA) loans are not eligible.

2) Mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
    - Anyone purchasing a home after this date is not eligible

3) Mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae 
     loan that refinanced under HARP between March-May, 2009

4) Current loan-to-value (LTV) ratio must be greater than 80%
     - You must owe more than 80% of what your home is worth.

5) Borrower must be current on mortgage at time of refinance, 
    with no late payment in past 6 mos, Plus no more than 1 late payment in past year


If you meet all of the above requirements you may be able to take advantage of this program.

If these don't apply to you and are currently underwater -
Please contact me at the information below to talk about options of how to pay your mortgage down more quickly and save thousands on interest!

Lindsey Evans
Mortgage Consultant
Western Ohio Mortgage
NMLS #282002


Cell: 937.935.6462
Email: LEvans@WesternOhioMortgage.com

Monday, August 22, 2011

What is the loan process and why all the paperwork?

Posted by Mortgage Bank at 1:28 PM 2 comments
In the last few years the economy has worsened and the average credit score has dropped into the 660s. More paperwork and verifications are required to ensure that borrowers will be able to pay back the mortgage amount they have borrowed. 

It's important to remember that you aren't borrowing $5 from a friend - you are borrowing ten to hundreds of THOUSANDS of dollars from a government institution!


1)  Prequalification vs. Preapproval 
a.    Prequalification – taking borrower information and pulling credit to determine an estimate of loan eligibility 
b.    Preapproval – Verifying all borrower information provided and approving a loan prior to formal underwriting  

2)    Formal Application 
a.    Sitting down with a personal loan officer – providing documented verifications of information discussed in Prequalification, Asking questions, discussing potential issues.  

3)    Processing 
a.    Sending all signed application documents, credit supplements and income information into the Processor.  
b.    Verifications of credit, employment, rent, child support, income, etc are correct 
c.    Appraisal is ordered and verified that house is more than amount of mortgage. Title is ordered and verified no additional liens are on the property.  

4)    Underwriting 
a.    All verified information is sent to the Underwriter who determines, based on borrower’s payment history and probability of repayment, loan approval.  

5)    Rural Development/OHFA 
a.    Down Payment assistance organizations must also approve the application for zero money down/assistance grants.  

6)    Closing Preparation 
a.    The Closer, together with the Title company, prepare deed, HUD-1 settlement statement, other closing documents a minimum of 48 hours before closing.   

7) Closing
a. Sitting down with the Seller, Title Agent and Realtors to sign official loan/sale documents such as the Note and Deed.

Items that may be needed for document verification  
•    Driver’s License 
•    Social Security Card / Alternate form of ID 
•    60 days of bank statements 
•    30 days of pay stubs 
•    Two years of tax returns (Three for Down Payment Assistance) 
•    Two years of W2s (Three for Down Payment Assistance) 
•    Child support order
•    Divorce decree 
•    Bankruptcy petition and discharge 
•    Credit collection explanations 
•    Judgment proof of satisfaction 
•    Other items at Loan Officer discretion

Tuesday, August 9, 2011

USA Credit Downgrade - What's it mean for you?!

Posted by Mortgage Bank at 10:35 AM Labels: , , 1 comments
There has been a lot panic lately with the recent USA Credit Downgrade. Wall Street has taken a nosedive, the President has broke into to every show on at every hour every day it seems. But what does all of this mean for the normal, every day American?

Let's think of it this way - If you have a low credit score, it will cost you more to borrow money because the bank thinks you are less reliable, right? It's the same principle for the USA. There are many different companies that have the USA rated, and they have all downgraded to a lower rating. Whether it's AAA to AA+ or BBB to BBB- it all means the same thing. It's going to be more expensive to borrow money... eventually. But not right now.

So if our credit rating is going down then rates must go up to compensate for the liability. If organizations and/or other countries think there is a chance we can't pay our money back then they will raise their rates on the USA. BUT.....

Right now Rates are RIDICULOUSLY LOW!!! So if you are even THINKING about refinancing your mortgage now is the time to do it! We are talking back to below 5% rates!

One good thing that has come out of all this besides mortgage rates? Oil futures (what drives the price of gasoline) have went down because investors are too afraid to put a lot of money in the market right now. So if the downturn continues they will more than likely put their money in Gold and take it out of oil.  So YAY! Gas prices more than likely go down too!

All in all - if you think the recent "economic crisis" doesn't affect you - it does and it will. That's why it really is important to pay attention to what's going on in the world.
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