Monday, January 28, 2013

Market Alert ...


Last Week's Mortage Rates Recap
Last week displayed the volatility we warned about, and ended on a terrible day. The market losses we saw occur on Friday marked a new point in technical indicators for mortgage rates, and saw mortgage rates reprice for the worse on Friday for about .125% higher. We were able to warn most of our consumers early on, as we monitor the market in real time and can act quickly when the trend starts.

This Week's Mortgage Rates Forecast

Risks Favor: LOCKING
This week the risks still favor locking, as we see a new baseline for technical indicators that rates will continue to get worse (rates will go up or rebate will be lost). Economic data on the calendar will cause lots of movement, with lots of data including the FOMC policy statement on Wednesday that will be a market mover. Consumers who choose to try and wait it out, trying to achieve the best rates that we have seen in the past, will likely pay for that mistake. All technical indicators point to locking in interest rates before we see continued rate erosion. How we end the week will be especially important. Again, we must emphasize that consumers need to see the risks for trying to obtain better rates are much higher than the potential rewards they may see. All technical and fundamental indicators point to locking in rates as soon as possible until we see a reversal.


RateAlert’s Most Trusted Mortgage Loan Officers
MLOs that subscribe to RateAlert’s Executive service have the training and market knowledge, along with the data at their fingertips, to expertly help you navigate the difficult and sometimes treacherous process of obtaining home financing and securing some of the best rates the market has to offer. If you would like to learn more about how to time the market to obtain the best interest rates, don’t hesitate to contact the MLO who sent you this commentary.

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Tuesday, January 8, 2013

Verification of Funds – The Hot Button Issue of 2013

Verification of Funds – The Hot Button Issue of 2013

Funds verification requirements can be very frustrating for borrowers applying for mortgage loans today.  Here are some tips to help you prepare and avoid frustration … These tips apply to any account that you will provide to your loan officer as part of your application.

  1. Start planning 30 to 60 days before you apply (we will require your last 2 month’s bank/brokerage statements).  
  2. Any deposits to your account that are not “Direct” deposits for payroll, social security, retirement, etc. will need to be verified*.
  3. Funds transfers – if you transfer funds from Account A into Account B (and Account B is provided to the lender), you will have to provide a statement from Account A showing the funds transfer and a 30 day history.  If there are deposits showing in Account A they will need to be verified*.  
  4. Earnest Money Deposits (EMD) Purchase loans – Your EMD must be verified prior to closing – you will be required to provide a copy of the cancelled check (front and back) along with a 30 day statement showing the check clearing your account. 

* Verified means – a copy of the check (front and back) with a written explanation of what it represents.

Working with the right Loan Officer, who understands these guidelines, can make all the difference in creating a smooth transaction.