Tag Archives: low mortgage rates

Las Vegas Mortgage Market Update: Qualified Mortgage or Qualified Residential Mortgage

As of the first of the year, there will be new way of doing business in the mortgage industry and new underwriting guidelines for potential mortgage borrowers. The term for this is: qualified mortgage or qualified residential mortgage. You may wonder, well, of course borrowers should be qualified for the mortgage they are borrowing! In recent years, however, the country has seen many people qualify for mortgages that they could not afford. This has lead to a substantial increase in foreclosure rates and thousands of people losing their homes.

The new mortgage underwriting guidelines are geared towards making sure borrowers truly understand the loans they are taking out with all of the related fees, closing costs, loan terms and pay off dates. In the recent past, borrowers would often take out adjustable rate mortgages that started off with very low monthly payments, but then jumped dramatically when the interest rate adjusted to current market rates. This made it very difficult, if not impossible, for many borrowers to make their monthly mortgage payments. These are the kinds of scenarios that the new mortgage underwriting guidelines are intended to avoid.

To this end, the disclosure paperwork that details the costs of borrowing a mortgage loan is being updated to make it more “user friendly” and understandable for the borrower. Additionally, the 97% mortgage loan programs that have been offered by Fannie Mae and Freddie Mac are being phased out. The highest loan-to-value ratios will be 95% at the turn of the new year. The allowable debt to income ratio will also be dropped to 43% on the backside, according to the new underwriting guidelines. This means that a borrower’s overall debt-to-income ratio cannot exceed 43% of his or her monthly income.

The goal of the new underwriting guidelines is to protect prospective borrowers from obtaining mortgage loans that they are likely to default on in the future. Interest rates on residential mortgage loans are also scheduled to increase in January. The new underwriting guidelines will help consumers to understand the true cost of the mortgage loan they are borrowing, so that they can choose a home that they can comfortably afford. However, there will be an allowable grace period in the implementation of these new guidelines, which will allow banks and lenders to develop the programs necessary to meet consumers’ mortgage needs.

For more information on qualified mortgages and why it’s important to take advantage of residential properties in Vegas before the many changes take effect, please contact Jullian Batchelor, top licensed real estate agent in Las Vegas.

Las Vegas Mortgage Market Update With The Batchelor Group and First Option Mortgage

Home buyers in today’s real estate market have better outcomes with Realtors and Lenders who work as a team on behalf of buyers. Jillian Batchelor and Pamela Wilkins of First Option Mortgage are such a unit and any home buyer would do well to have this pair in his or her corner.

Both Jillian and Pamela agree that before any buyer is able to submit an acceptable offer, the buyer must be pre-qualified and have some grasp of the type and amount of loan that is within his or her capabilities. A call or email to either Jillian or Pamela will get the ball rolling on pre-qualification which should always occur before looking at homes seriously.

Pre-qualified home buyers have clear parameters and are able to focus on homes for sale that conform to their individual loan qualifications. The right fit will support a quick close and move in date. Additionally, a pre-qualified buyer is more confident and able to evaluate other critical aspects of the home purchase such as price relative to investment and value as opposed to simply the outer limits of loan qualification. A pre-qualified buyer is able to closely evaluate home inspections, community assets and location of the real estate because the stress of qualifying for the loan is off the table.

Once an offer has been accepted, the strength and fast moving pace of the First Option Mortgage process is quite extraordinary. As a direct Lender, there is no time consuming a search for the best loan because First Option will make the loan commitment directly thereby avoiding the additional time required to seek out funding sources as many online loan companies and brokers must do. First Option Mortgage gives all borrowers their exclusive “10 day underwriting guarantee” which is a promise to First Option borrowers that loans will be evaluated and approved by the underwriting department within 10 days of submission. This assurance of quick action gives home-buyers a true competitive edge when it comes to performing in a fast moving real estate climate.

Financing programs that adapt to today’s special circumstances provide opportunities to individuals who hit rough patches during the downturn and have recovered but still have some financial scars. First Option Mortgage has a wide range of financial products to help first-time home buyers and home buyers who suffered setbacks when the bubble burst but have landed on their feet and are ready to evaluate buying a home again. Jill Batchelor and Pamela Wilkins are well prepared to help the Las Vegas community benefit from a healthy and robust real estate market. They are the experts in low down FHA loans, VA loans and specialized loans that save the expense of mortgage insurance. The experience and knowledge of different financing programs appropriate to different market conditions and buyer circumstances promise the best terms and the best homes for all of their clients.

Call the Batchelor Group at 702-823-3801 or email at: www.LasVegas1RealEstate.com to discover Las Vegas real estate opportunities for you.

Tips on How to Get Approved for a Home Loan in Las Vegas

Buying your first house is extremely exciting, and many people can attest to that fact. However, in order to purchase a house, most people need to take out a home loan. Saving up enough money to cover the entire cost of the house is an impossible task for most, but a loan can seriously help make this dream a reality.

When you are thinking about purchasing a home, you need to work to get your financial situation in order. Generally, this means you need to save up a sizable down payment. If you’re able to qualify for an FHA loan, you can put as little as 3.5 percent down on the loan. Many people try to save a much as 25% for a down payment, but this can be extremely difficult, especially in more expensive parts of the country.

It’ also a must that you work to ensure that your credit scores are in decent shape… the higher the better When your fico scores are low, you pose a major risk to lenders. Even if you are approved for a home loan, you could end up paying very high interest rates. Fortunately, if this situation does occur, you could refinance later for lower interest rates once your finances are in a better place.

As you get closer to the home-buying moment, you should obtain a pre-approval with a loan provider. Generally, you are going to go through a bank or mortgage company to get a home loan. If you have any extenuating circumstances, you should speak with a loan representative about the best way to address any challenges. For example, if you have low credit scores, you would need to explore the option of entering into a specific program.

A pre-approval tells you how much of a loan you are going to get approved for. Then, you’ll be able to start looking at houses that fall within your approved budget. This pre-approval is quite important! It’s important to pay particular attention to the expiration date on the approval letter. Once that day has come and gone, you would need to get approved for the loan all over again.

When you are ready to buy your home, you’ll go through a last and final approval. Working with an experienced real estate agents like The Batchelor Group and Joshua Nieves one of the top lenders in Las Vegas through this process is highly advisable to great optimal results in your buying process.