Safer Mortgages Rise From the Ashes of ’08 Financial Crash

Trending Home News Mortgages are safer now than they were 10 years ago. That’s the main effect the 2008-09 financial crisis has had on the mortgage market. The following loan types were popular during the housing boom in the early- to mid-2000s but are unavailable now to most borrowers: Low-doc mortgages allowed borrowers to get loans without documenting income and assets. Interest-only mortgages enabled borrowers to buy houses they otherwise couldn’t afford with an initially low monthly payment. But the loans were the financial equivalent of time bombs: The interest-only period … [Read more...]

Financing Changes Coming October 3rd

Do you know about the financing changes that are coming on October 3rd?  Here are some Highlights to keep better informed: New Loan Estimate Document Created Replaces the Good Faith Estimate (GFE) and initial Truth-in-Lending (initial TIL) disclosure. The new form provides clearer information so that consumers understand the loan terms and estimates of loan and closing costs and to facilitate comparison shopping. The Loan Estimate must be provided to consumers within three business days after submission of loan application. New Closing Disclosure Document … [Read more...]

True or False – You HAVE to have 20% Down to Purchase a Home

It depends on who you talk to and which loan program you’re applying for …. In a recent Wells Fargo Home Buyer survey, many myths and untruths came into light and many of them hinged on how much money was needed to have upfront when purchasing a home. The Wells Fargo Home Buyer Survey revealed: 82% of the people who responded to the survey do not spend beyond their means and know how to manage their finances. 63% have funds set aside for emergencies (even the Millenials!) 27% disclosed they tended to spend money without thinking (impulse purchases), but many said they … [Read more...]

What goes into Closing Costs in the Cedar Rapids Area 

According to Bankrate, Iowa ranks 16th lowest in terms of closing costs. You can expect to pay about $1,773 in bank origination fees; $675 in third-party fees, appraisals, and title insurance; for $2,488 in approximate closing costs. However, just two years ago Iowa was ranked 4th cheapest. But not to worry, even though our ranking slipped, closing costs have actually decreased. In 2012 the average closing costs in Iowa were $3,257 and now they’re $2,488 – a difference of over $700!! You may see fees by the Lender like this: Origination points (not discount) - $732 Application - … [Read more...]

What does an Underwriter have to do with your loan?

If you’ve been working with a loan officer during the final stages of your loan process, you more than likely have heard the term “Underwriter”. Do you know what underwriters are looking for when they are gleaning your application, life history and purchase agreement? I always pictured underwriters as beings on a cloud, wand in hand ready to grant or dispel home mortgage funding. Gods, if you will. You give and give and give tons of paper and your utter most personal and financial information. On a good day you could get your loan funded, on a not so good, you may be going back to square … [Read more...]