Archive for the ‘Alerts’ Category

Winter Weather Affects New Home Purchases

Thursday, February 6th, 2014

Have you been staying inside because of the recent wintery weather that has affected most of the East Coast?

According to the Mortgage Banker’s Association, applications for mortgage loans of new home purchases decreased by 11% in December, relative to the previous month.

The cold weather and polar vortex weather patterns certainly have kept potential homebuyers inside, instead of out looking for their new home.

The winter brings on a dip in new home purchases, and a rise in refinance mortgages. Over 2013, sales of new homes hit a historic low, while demand remains high.

First time homebuyers have not returned to the residential home market due to constricted financing regulations. But some of these regulations may be easing up in 2014. Mortgage lenders are more concerned with how an applicant can pay back their mortgage throughout the life of their loan rather than a specific credit score.

Yet, as noted by The Washington Post, for the year end report of 2013, sales totaled 5.09 million, the best performance since 2006.

When the winter weather subsides, new homebuyers will begin to venture outside to look for their first home. If you are looking to stage your home for purchase, check out these great tips!

Mortgage Lending is Our Business: Customer Service is Our Passion.”

Stay tuned and stay in touch with your mortgage professional.  Thank you for the opportunity to serve you.

David.

919.851.0999.

Raleigh Mortgage Man, NC Mortgage Man, Triangle Mortgage Man, Triangle Mortgage Expert all owned and licensed by David M. Damare’.  All rights reserved.

New Year 2014 Residential Mortgage Lending Trends

Friday, January 24th, 2014

On January 10, 2014, new mortgage lending rules went into effect. How will these new restrictions affect residential mortgage lending in 2014?

These new restrictions issued by the Consumer Financial Protection Bureau will mean that more borrowers will be under more scrutiny by underwriters with longer processing times, yet there may be some reprieve for credit scores and debt limits in 2014.

New requirements will impact borrowers in specific ways. First, mortgage lending companies will determine if a borrower can return payment over the lifetime of the loan. And to put an end to risky loans, lenders are now required to have documentation of credit score, income, debt, and a full credit history.

To protect borrowers, these new rules will restrict what is called steering, or recommending loans that a family cannot afford. And there is no minimum down payment or credit score requirement, which may benefit borrowers. Borrowers will benefit from no minimum down payments, which will make it easier for new homeowners. Still, do not expect many loans to be approved with credit scores below 620.

Historically low mortgage rate will begin to rise this year. And as 2013 drew to a close, foreclosure rates were at a 6-year low, with less short or quick sales.

As we begin 2014, new home sales are expected to rise.

Are you looking to sell your home this year? Check out these great tips from guest contributor Geralin Thomas to stage your home.

Mortgage Lending is Our Business: Customer Service is Our Passion.”

Stay tuned and stay in touch with your mortgage professional.  Thank you for the opportunity to serve you.

David.

919.851.0999.

Raleigh Mortgage Man, NC Mortgage Man, Triangle Mortgage Man, Triangle Mortgage Expert all owned and licensed by David M. Damare’.  All rights reserved.