Want To Refinance? Take A Number!
HOME LOANS, INDUSTRY NEWS, TIPS FOR SELLERS
April 8th, 2009
The chief economist for Fannie Mae stated recently that it may be three months before the mortgage industry will be capable of working at full capacity. Most lenders began laying off employees more than a year ago in their mortgage processing departments in response to the slow housing market. Now that interest rates have dropped to historic lows, lenders are overwhelmed with inquiries and applications.
The short term frustration is many homeowners that want to take advantage of these sub 5% interest rates are unable to get their favorite lender on the phone. Gerri Willis, CNN personal finance editor, suggests:
- Be patient-there will be lines
- Be wary-it will take longer and fees are likely to be higher
- Get the best rates if you have the equity-at least 20%
- Keep your credit score as high as possible
Now is not the time to buy that new Corvette! Loan underwriters are scrutinizing borrowers more carefully than ever and if you have not made good buying decisions in the past it could make any loan offered more expensive or result in a loan rejection.
To prepare, Gerri makes the following recommendations:
- Obtain and complete a refinance application
- Make copies of your last two years tax returns
- Locate one month of pay stubs
- Compile 3 months of asset statements (Checking, savings, mutual funds)
- Your most recent mortgage statement
- Copy of your property deed
Your loan officer will appreciate your efforts to gather documentation and could expedite loan processing. Most lenders want 6 weeks to process a loan refinance since purchase loans take priority.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
