When is an approval really an approval? When is
an approval only a conditional approval? Below are the different levels of
“loan approval” you can get for a mortgage:
This is done before you make an offer on a home.
This is only a loan officer analysis, and supporting financial documents are
not required. This is a review of the applicant’s income and debts using
standard methods of determining housing and debt ratios to indicate the maximum
loan amount for which an applicant would qualify, subject to the satisfactory
appraisal, further verifications of income, employment and credit history. This is the lowest form of analysis you can
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The 10 Year Treasury Bond is at 2.73% so far today. This is slightly higher than the last time I posted 10 Year Treasury Bond data in early January.
On 01-03-2019 the 10 Year Treasury Bond was 2.55%.
The direction of the 10 Year Treasury Bond is a good gauge on Read the rest of this entry »
I am going to post numbers on the 10 Year Treasury Bond on a regular basis. The direction of the 10 Year Treasury Bond is a good gauge on where mortgage rates are going. While it is not an exact measure, the 10 Year Treasury Bond is one of the best things to follow to determine the general direction of mortgage rates.
As of 01-03-2019 the 10 Year Treasury Bond was 2.55%.
Below are some interesting numbers*:
In 2018 the average yield of the 10 Year Treasury Bond was 2.91%.
In 2017 the average yield of the 10 Year Treasury Bond was 2.33%. Read the rest of this entry »
So you’re applying for a mortgage, you think you have everything lined up right, you get pre-approved. Great! And then you get… conditional loan approval? What is that? What are the conditions? Read the rest of this entry »
When you’re buying a home or thinking of buying one, you’ll need to factor in many costs other than the home loan. If you’re not making a 20 percent down payment, and most people don’t, private mortgage insurance, or PMI, is at the top of the list of costs to consider. Read the rest of this entry »
When you divvy up your monthly budget pie, housing is very likely the biggest slice, especially after you add in utilities, maintenance and of course, your mortgage.
So wouldn’t it be great if you could lower your mortgage payments without refinancing your loan? Or better yet, pay off your mortgage ahead of schedule? Read the rest of this entry »
When you’re ready to buy a new home, one of the first things you have to do is take steps to get your financing in place. Mortgage approval is based in part on an automated underwriting process. Unless you plan to pay in cash, you need to secure a mortgage loan. It is beneficial to get a pre-approval letter from a mortgage lender before you even make an offer. Having your loan pre-approved can show a seller you are a serious buyer with adequate funds. You can also reduce the risk of the contract falling through.
Lenders typically use one of two underwriting processes for mortgage loans: automated and manual. Understanding the basics of how these types of loan approval work can give you confidence when applying for your mortgage. Read the rest of this entry »
Today’s real estate market can be competitive for everyone, no matter what price point you’re shopping at. That’s why it’s important to understand the ins and outs of the home buying process before you hit the market. Let’s talk about what getting a mortgage pre-approval letter involves, how you can do so, and why it’s a good idea for anyone heading into the market for a new home. Read the rest of this entry »
Homeownership is a major component of the American dream as it provides you with your own piece of property to put down roots and live your life. You might think the process starts when you first go out hunting for houses or condominiums, but it often begins long before the initial meeting with a realtor when you contact a lender for pre-approval. Homes are major purchases, and it’s understandable that you have to meet certain qualifications before the transaction goes through. Here are a few reasons why the seller and realtor might want you to get pre-approved, as well as an overview of the entire process. Read the rest of this entry »
Many people are very focused on interest rates these days and are wondering where they are headed next and how it may affect their mortgage payment. Interest rates have been historically low for a very long time, and people are starting to fear that they may increase and have an outsized impact on the cost of purchasing a home.
You can see a chart of the long-term history of interest-rates by clicking here. This chart shows that we are definitely near the bottom of where interest-rates have been over a long period of time. On the other hand, if interest-rates start to go up does it have as much of an impact as people think? Read the rest of this entry »