Delivering Home Purchase Loans in 14 days Guaranteed, How?

By allen.cofield@nafinc.com September 27, 2013

If you have ever had an experience of buying a home, you may have experienced a delay of closing due to the financial institution not delivering upon the promised closing date that you gave the seller.

What can be the most frustrating fact is that the lender you choose is the difference of whether or not you obtain the home you long desire.  This frustration is usually drawn from lenders that cannot close your loan in time.  This leads to the next question, How can I assure I have chosen the right loan officer and lender to close on my purchase in time and that will deliver upon the pre-approval I received?

The number one thing to assure closing is open communication between you and your loan officer. 

Setting up the right expectations to what you can purchase on financing is key. Someone who is experienced will have had a few transactions to let you know the pitfalls and failures as to why lending can be denied.  If you would like to hear some common mishaps that can occur in this market today, please contact me directly at 949.836.7225.

Wait, I know you are waiting for the answer on how you can close your purchase loan in 14 days Guaranteed. This is offered by New American Funding for those who know what to provide and what type of transaction is allowed to close in this time frame.  I can educate you on the requirements and how you can be in your next home in 14 days.*  I look forward to hearing from you and to help you on your next purchase.

Allen Cofield

Senior Loan Consultant

 

 *The 14 Day Close is not applicable to all programs. Please see details in the disclosure link in the footer of this page for further clarification.

Homebuying in 2013

By Rosemarie.pirio@nafinc.com January 2, 2013
Homebuying in 2013

What is a mortgage interest rate lock?

By Rosemarie.pirio@nafinc.com November 9, 2012

Say you’ve been shopping mortgage interest rates, and have been offered a deal you can’t pass up. So you filled out the loan application and submitted it for approval. While waiting to get the approval, the market fluctuates and interest rates go up and down. Wouldn’t it be nice to have a guarantee (or something close to it) that the deal-of-a-lifetime interest rate, that enticed you to go for the loan, will not change by the time your loan gets approved?

This is exactly what a mortgage rate lock, also called a mortgage lock-in or rate commitment, does; it locks in a certain interest rate and points for a specified amount of time, protecting you from market fluctuations and interest rate increases.

Therefore, as you shop rates among different lenders, don’t rely on the interest rate and terms the lender quotes, unless the lender is willing to offer a lock-in. A mortgage rate lock is the only guarantee that you will receive these terms at the time your loan is approved.

Get the mortgage rate lock-in writing!

Some lenders will only lock-in the interest rate, and not the terms or points associated, while others will lock-in the interest rate, points and terms. This is why it is crucial to ask for the rate commitment in writing, if possible. Not only will it prove to be useful should a dispute arise, but it will also allow you to fully understand how the lock-in commitment works. Some lenders may only offer a verbal commitment, which when it comes down to it, can be difficult to prove in the event of a dispute.

Also, it varies between lenders when they will lock-in an interest rate and points, it could be at the time you apply, during processing when the loan is approved

Flood Insurance 101: A Downpour of Everything You Need to Know

By Rosemarie.pirio@nafinc.com November 8, 2012

It’s that time of year, the rainy season. For many homeowners the rainy season also means the flood season. Do you have a flood insurance policy already in place? Be advised that even though you have homeowner’s insurance, it does not mean that you are covered in the occurrence of a flood. How do you know if you need flood insurance? How does it work and where do you get it from?

The Beginning: The National Flood Insurance Program (NFIP)

Let’s start from the very beginning. Back in the day, no one could get flood insurance because it was too costly for private insurers to offer. The only support the government provided against flood disasters was the construction of flood control works such as dams, levees, sea walls, etc., and the possibility of disaster relief. 

In 1968 Congress established the National Flood Insurance Program (NFIP) as a means to offer homeowners the opportunity to purchase flood insurance backed by the government, in exchange for community participation and implementation of measures to reduce future flood risks.

So today, if your community participates in the NFIP, you are eligible to purchase government-backed flood insurance that is offered through private insurance companies.  If you live in a community that does not participate, flood insurance is not available. There are about 85 private insurance companies that offer flood insurance through the NFIP, so if you are unsure about your community’s participation, speak with a local insurance agent.

Now the question is, do you need flood insurance?

Floods can happen anywhere, with some areas being high-risk. Homeowners that live in high-risk areas are often required by law to purchase flood insurance. Sometimes a mortgage lender will require flood insurance as well. First it’d be best to find out the different flood zone designations. Some zones are at risk from flooding due to rivers and streams, while others might be at risk of flooding due to coastal locations or storms. You can check the Federal Emergency Management Agency (FEMA) Map Service Center to see a map of the area where your home is situated to determine your flood risk.

Flood Insurance Coverage Availability

The NFIP issues flood policies up to $250,000 for residential properties. As with homeowner’s insurance, it’s important to choose a flood policy based on your needs. The standard flood insurance policy covers the main structure on the property, but does not extend to secondary structures. Flood insurance does not typically cover your personal possessions, but you can get this for an additional premium cost and coverage for up to $100,000.

Important note, there is a 30-day waiting period for new applications and endorsements to increase coverage, so with flood season right around the corner, don’t hesitate!

Please feel free to share this information with your friends and family!

Housing Scorecard: Equity Positions Improving

By dusty.lloyd@nafinc.com October 8, 2012

The Departments of Treasury and Housing and Urban Development released the August version of their monthly Housing Scorecard this afternoon. The Scorecard is a summary of housing data from various sources such as the S&P/Case-Shiller house price indices, the National Association of Realtors® existing home sales report, Census data, and RealtyTrac foreclosure information. Most of the information has already been covered by MND.

According to the scorecard homeowner equity has risen to its highest level since the third quarter of 2008 and 1.3 million borrowers have been lifted above water, largely due to rising home prices. Equity jumped $406 billion or 5.9 percent to $7,275 billion in the second quarter of 2012. Combined with a sharp increase in the first quarter, equity has risen $863 billion or 13.5 percent so far this year and the number of underwater borrowers has declined by 11 percent to 10.8 million.

The Scorecard includes by reference the monthly report on the Home Affordable Modification Program (HAMP). The current report covers information through August.

More than one million homeowners have received permanent modifications through HAMP since the program began in the spring of 2009 and the number of borrowers who have started trial modifications is nearing two million and distressed borrowers continue to enter the program. Since the last HAMP report there have been 14,582 new trials started for a total of 1,912,439. In the last month 16,509 trials have been converted to permanent status for a cumulative total of 1,076,747. There are 831,661 borrowers who still have active modifications; the remainder have either redefaulted, been cancelled for other reasons, or have paid off their loans,

A number of other programs are active under the HAMP brand and have experienced activity over the last month.

The 2MP program works to modify second mortgages. These had previously presented a significant obstacle to the success of HAMP. During the month the program either modified or extinguished 3,863 second liens and to date have done so for 93,865 homeowners.

The Home Affordable Foreclosure Alternatives (HAFA) Program offers incentives for homeowners to exit homeownership through a short sale or a deed-in-lieu of foreclosure. In 20 percent of HAFA agreements the homeowner had started a HAMP trial but was either disqualified or later requested a HAFA agreement. During the report month, 10,831 borrowers completed a HAFA agreement, the majority of them short sales. Since the program began there have been 71,403 HAFA resolutions, 69,615 of them short sales.

The Treasury's MHA Unemployment Program (UP provides temporary forbearance to homeowners who are unemployed. Borrowers must be considered for a minimum of 12 months forbearance. The program served 871 homeowners during the month and a total of 26,197 since it was implemented.

The performance of servicers participating in the program has improved in a number of respects after what is generally considered to have been an inauspicious beginning. Revisions made to both borrower requirements and servicer standards in June 2010 have resulted in most servicers now responding to borrower requests, implementing trials, resolving problems, and converting trials to permanent status in a timely manner. Here are details provided by HAMP for some of these metrics.  

 

Read Full Article at http://www.mortgagenewsdaily.com/10052012_hamp_housing_scorecard.asp 

By Jann Swanson