Mortgage Minute: Be Patient During Underwriting


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It’s natural to want the home buying process to begin and end quickly, however, it’s important to be well-versed in the mortgage process. Our friends at Home Team Mortgage are here to help you every step of the way. Check the Ebby blog often to familiarize yourself on a variety of mortgage topics.

 

Keep your finances as boring and steady as possible between the time you apply for a mortgage and the time you close on the loan.

 

That sounds simple in theory, but it’s sometimes difficult in practice, especially for first-time homebuyers. What it means is this: Don’t charge up your credit cards and don’t apply for new credit while the mortgage is going through the underwriting process.

 

When you apply for the mortgage, the lender looks at your credit report and your credit score. Then, shortly before closing, the lender surveys your credit again. If there’s a substantial change — say you maxed out your credit cards to buy furniture and appliances, or you got a loan to buy a car — the lender might have to delay your mortgage closing. In drastic cases, you could torpedo your mortgage and have to apply all over again.

 

Considering purchasing a home? Home Team Mortgage Company, Ebby Halliday’s affiliated mortgage company, has a track record of building long-lasting relationships by providing exceptional service with competitive rates. With an office in each Ebby Halliday branch, Home Team Mortgage loan officers offer the convenience of one-stop shopping, coupled with expertise to ensure peace of mind for borrowers and agents alike.

 

For all your mortgage questions and needs, contact Home Team Mortgage Company.

Mortgage Insight: Dos and Don’ts of Mortgage Financing


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You’re in the midst of purchasing a new home and find yourself with a lot on your to-do list. The basic requirements – utilities, phone and Internet – are often accompanied by new furniture, décor and general replacing of the “old” with the “new.” It’s easy to get carried away, but before you do, the following is a list of dos and don’ts to assure your credit and loan approval are protected.

 

HTM

For 19 years, Home Team Mortgage Company has been committed to building long lasting relationships by providing exceptional service with competitive rates. With an office located in each Ebby Halliday Real Estate branch, HTM loan officers offer the convenience of one-stop shopping, coupled with expertise to ensure peace of mind for borrowers and agents alike.

 

To learn more about the mortgage process and to determine how much you qualify to borrow for a home purchase, contact Home Team Mortgage at 972-665-1900 or customerserviceyhtm@yhtm.com.

Mortgage Insight: Breaking Down the Loan Lingo


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Buying a home can be overwhelming, especially when you add in the loan lingo and acronyms used by lenders and real estate agents, according to Alex Parker, sales manager at Home Team Mortgage – Ebby Halliday’s affiliated mortgage source. To help alleviate some of the confusion, below are some common terms frequently used in the mortgage process:

 

FHA Mortgage

FHA is a type of mortgage that offers lower down payments, lower credit and less income to qualify. These mortgages are government backed by the Federal Housing Administration.

 

VA Mortgage

VA mortgages are loans catered to qualified veterans, active-duty military personnel and reservists. These loans require no down payment and are guaranteed by the Department of Veteran Affairs.

 

Conventional Mortgage

Conventional mortgages are loans offering a wide range of options for borrowers. Some features may include monthly or single premium mortgage insurance, second liens, and higher loan amounts.

 

Fixed Rate Mortgage

This is a mortgage loan for which the interest rate is fixed for the life of the loan. The principal and interest payment does not vary. As with every loan, the escrowed portion of the payment may fluctuate up or down depending on the tax or homeowner’s insurance changes.

 

Adjustable Rate Mortgage (ARM)

This is a mortgage loan for which the interest rate may change annually, often after a set number of years. ARMs are tied to indexes which are used to determine changing rates to align with the current market. The principal and interest payment may vary up or down, along with the escrowed portion of the payment.

 

Annual Percentage Rate (APR)

The APR illustrates the annual cost of financing, including interest rate, fees and charges and is expressed as an annual interest rate. Because you may be paying loan discount points and other prepaid finance charges at closing, the APR disclosed is often higher than the interest rate on your loan. This APR can be compared to the APR on other loan programs to give you a consistent means of comparing rates and programs.

 

Pre-Qualification

A process by which a lender assesses whether a borrower qualifies for a mortgage based on information provided by the customer. Typically, a prequalification is an informal review as a preemptive to pre-approval and full loan approval.

 

Pre-Approval

A process by which a lender verifies information including credit, income and asset information to assure the borrowers qualify for the mortgage. A pre-approval is much more powerful in negotiating as it provides peace of mind for buyers, sellers and agents.

 


 

For 19 years, Home Team Mortgage Company has been committed to building long lasting relationships by providing exceptional service with competitive rates. With an office located in each Ebby Halliday Real Estate branch, HTM loan officers offer the convenience of one-stop shopping, coupled with expertise to ensure peace of mind for borrowers and agents alike.

 

To learn more about the mortgage process and to determine how much you qualify to borrow for a home purchase, contact Home Team Mortgage at 972-665-1900 or customerserviceyhtm@yhtm.com.

Mortgage Insight: A Guide to Home Buying


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By now, you have become familiar with our new blog series Mortgage Insight, where Home Team Mortgage —  a team of knowledgeable and seasoned mortgage professionals — offers tips on purchasing a home or refinancing a pre-existing mortgage.

 

At the end of each month, HTM will present a Q & A in relation to the home buying process. This week, Alex Parker — Vice President of Sales — will shed some light on a few key factors that go into purchasing a home below:

 

Q: In order to purchase a home, does my credit score have to be good?

 

A: One of the biggest misconceptions by most borrowers is that you have to have a perfect credit score to buy a house. However, this isn’t the case. We have loans that allow for a credit score of 600. It is important to note, however, the better your credit score is, the better the interest rate will be.

 

 

Q: What is the difference between a pre-qualification and a pre-approval?

 

A: A pre-qualification means you’ve spoken to a lender and have told them what you “think” your credit score, income and assets are. Pre-qualification letters specifically state that the lender has not verified any of the borrowers qualifying documents. A pre-approval means you have provided your pay stubs, W-2 forms, tax returns and bank statements to the lender and, in return, they have pulled and reviewed your credit history.

 

 

Q: At what point should I look into pre-approval for a home?

 

A: The pre-approval process should start before you start looking for a home. Most of the time, sellers will turn the other way if you have not been pre-approved, especially in today’s market, where sellers are receiving multiple offers on a home. Time is critical in today’s market and sometimes the best way to win a deal is to offer a short closing time. However, you can’t close quickly unless your lender has pre-approved you.

 


 

For 19 years, Home Team Mortgage Company has been committed to building long lasting relationships by providing exceptional service with competitive rates. With an office located in each Ebby Halliday Real Estate branch, HTM loan officers offer the convenience of one-stop shopping, coupled with expertise to ensure peace of mind for borrowers and agents alike.

 

For all your mortgage questions and needs, contact Home Team Mortgage Company, an Ebby Halliday affiliate.

 

Mortgage Insight: Renting vs. Buying


HTMOn average, U.S. homebuyers pay an estimated 15 percent of their income on mortgages. According to a Zillow survey, renters pay nearly double that.

 

Buying a home is one of the biggest financial decisions a person can make. See below on why it could also be the best decision:

Mortgage Insight

For 19 years, Home Team Mortgage Company has been committed to building long lasting relationships by providing exceptional service with competitive rates. With an office located in each Ebby Halliday Real Estate branch, Home Team Mortgage loan officers offer the convenience of one-stop shopping, coupled with expertise to ensure peace of mind for borrowers and agents alike.

 

For all your mortgage questions and needs, contact Home Team Mortgage Company, an Ebby Halliday affiliate.

Mortgage Insight: Know Before You Owe


Mortgage Insight

For all new loan applications dated on or after October 3, 2015, the Consumer Financial Protection Bureau (CFPB) is putting new rules in place that will help consumers better understand the mortgage process. The current mortgage disclosure forms, required by federal law, will be replaced with new and easier to understand “Know Before You Owe” forms. Realtors will be affected by this change. However, the biggest change will be the increased amount of time needed from contract to closing.

 

Initial Disclosure (ID)

 

Currently: Lenders must provide all initial disclosures, including the Truth in Lending (TIL) and Good Faith Estimate (GFE) within three business days of applying for a mortgage loan. Both disclosures are estimates that provide the customer with information about their financing and closing costs.

 

New Process: The lender still retains this responsibility. However, the GFE and TIL are now replaced by one form – the Initial Disclosure (ID). This form is easier to understand and provides more clarity to the buyer about their loan decisions.

 

HUD-1 Closing Disclosure Approval

 

Currently: Buyers can receive their HUD-1 settlement statement minutes before closing and still have the capability of closing on time.

 

New Process: The Buyer must acknowledge receipt of the final Closing Disclosure (CD) a minimum of three business days prior to consummation. If any changes to the CD cause the APR to change by more than .125 percent, the required three business days start over.

 

Closing Process

 

Currently: The Lender sends closing instructions to the settlement agent in order to prepare the HUD-1 statement. Once the Lender approves the HUD-1, the settlement agent provides closing information directly to the consumer and closing can begin as soon as possible.

 

New Process: The CD replaces the HUD-1 statement and it is the Lender’s sole responsibility to prepare, approve and send the CD directly to the buyer. Consummation will take place a minimum of three business days after the buyer acknowledges receipt of the final CD, with no exceptions to the three-day rule.

 


 

For 19 years, Home Team Mortgage Company has been committed to building long lasting relationships by providing exceptional service with competitive rates. With an office located in each Ebby Halliday Real Estate branch, Home Team Mortgage loan officers offer the convenience of one-stop shopping, coupled with expertise to ensure peace of mind for borrowers and agents alike.

For all your mortgage questions and needs, contact Home Team Mortgage Company, an Ebby Halliday affiliate.

Mortgage Insight: Pre-Approval First, Save Time Later


Home Team Mortgage

We are excited to introduce our new, weekly blog series, Mortgage Insight, that offers tips on purchasing a home or refinancing a pre-existing mortgage, courtesy of Home Team Mortgage Company — a team of knowledgeable and seasoned mortgage professionals eager to assist in the home ownership process, affiliated with Ebby Halliday, Realtors.

 

This week, we discuss the difference between mortgage pre-approval and mortgage pre-qualification, two very different things.

 

With multiple offers becoming more common, buyers who want an advantage in the bidding process will need more than just a mortgage prequalification – they’ll need pre-approval. Pre-qualification means you have not provided documentation for a loan. However, a pre-approval shows you have given the mortgage lender documentation on your income, assets and liabilities, which may be checked and verified.

 

Below you will find multiple advantages a pre-approval has to offer:

 

Negotiation

Pre-approval for a mortgage shows homeowners you are serious about purchasing a home. Owners may debate between your offer and a higher offer from a buyer who hasn’t been pre-approved. Your status will allow for flexibility, and knowing how much you can borrow will give you an advantage over your competition, especially if you find yourself in a bidding war. You will be more strategic about your offers and understand what an offer increase could do to your monthly payments.

 

Price

Before spending hours house hunting, pre-approval enables you to search for homes you can afford, allowing you to realistically manage your expectations.

 

Quick Purchase

Pre-approval allows you to make purchasing decisions. Waiting until you find a house to become pre-approved will cost time and could potentially risk losing the home.

 

 

For 19 years, Home Team Mortgage Company has been committed to building long lasting relationships by providing exceptional service with competitive rates, and welcomes the opportunity to make your home buying experience the best it can be. With an office located in each Ebby Halliday Real Estate branch, Home Team Mortgage loan officers offer the convenience of one-stop shopping, coupled with expertise to ensure peace of mind for borrowers and agents alike.

 

For all your mortgage questions and needs, contact Home Team Mortgage Company, an Ebby Halliday affiliate.