Tag Archives: FHA

Home Financing “Need List”

 

Kathleen Beck – Mortgage Lender

West Coast Mortgage Group

NMLS #243181 | BRE #01058848

Looking to buy or refinance a home is a very exciting time. It is also an important time for interested borrowers to organize their documents, better known as a “Needs List” to ensure your loan or re-fi is processed in a timely manner without unforeseen challenges.

The documents listed below are needed by your mortgage officer in order to verify the information you provided during the application process. These items should be sent at your earliest opportunity to expedite the processing of your request.

Documents Needed:

  • Copy of your Driver’s License
  • Copy of your Social Security Card
  • Legible copies of W-2’s and 1099s from last two tax years
  • Personal Federal Tax Returns from last two tax years
  • Statements for all checking, savings, investment and retirement accounts (including all pages for the last two months)
  • A letter of explanation for all non-payroll deposits into your accounts and copies of the checks deposited
  • Current pay-stubs from all borrowers (most recent 30 days)
  • Copy of Homeowners Insurance Policy Declaration Page showing the coverage and premium on all property owned
  • Current mortgage statements on all property owned

The entire loan and re-finance process takes approximately 30-45 days and mortgage officers should work to make this as simple and stress-free as possible. Once you have gathered the items above, send the documents via secure email, hand delivery, or by means you feel comfortable and you should have a smooth experience.

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Understanding Mortgage Insurance Q&A

By: Kathleen Beck, Mortgage Lender

West Coast Mortgage Group

NMLS #243181 | BRE #01058848

Mortgage insurance is an important element of the loan process if you have a low down payment, yet many first time borrowers aren’t very familiar with what it is and how it works. Mortgage insurance helps borrowers lower the risk they are placing on lenders for qualifying them for a loan with a low down payment. There are two types of mortgage insurance, “Borrower Paid” and “Lender Paid.” Understanding the difference between borrower and lender paid, and why utilizing this insurance option could benefit the buyer as well as the lender.

Here are some great questions and answers that I have provided my clients that all borrowers may also find useful.

  • Q – Who needs mortgage insurance?
    • A – Most borrowers making down payments fewer than twenty percent of the purchase price need to obtain mortgage insurance.
  • Q – What is the purpose of mortgage insurance?
    • A – Mortgage insurance lowers the risk the lender making a loan to you holds, so you can qualify for a loan.
  • Q – What is Borrower Paid Mortgage Insurance (BPMI)?
    • A – BPMI is insurance on your loan for the lender when a borrower has a low down payment and a lender is looking for assurance that the loan will be paid in full and on time. If a borrower decided to utilize BPMI, the lender charges a yearly premium paid in monthly installments.
  • Q – What is the average a borrower will pay a lender for their BPMI?
    • A – On average, BPMI premiums costs between 0.3 and 1.15 percent of the total loan amount.
  • Q – What is Lender Paid Mortgage Insurance (LPMI)?
    • A – LPMI is mortgage insurance that the lender pays for the insurance premium instead of the borrower. The cost of the LPMI is reflected in a higher interest to the borrower.
  • Q – Does mortgage insurance increase your monthly payment?
    • A – Mortgage insurance does increases the cost of your loan.
  • Q – Will the mortgage insurance payment be included on my monthly payment statement?
    • A – Yes, mortgage insurance will be included in your total monthly payment.
  • Q – If I default on my payments and the insurance kicks in, what will happen to my credit and my home?
    • A – If you fall behind on your monthly payments, your credit score may suffer and there is a possibility your home could foreclosure.

There are multiple loan options available to borrowers with low down payments. I enjoy working with my clients to help them find the down payment and loan that best fits their financial needs and I always recommend that they ask questions and maintain communication throughout the lifecycle of their loan. The last tip I would like to leave you with is, once the loan is paid down some, you may be eligible to cancel your mortgage insurance. If you are able to cancel, you won’t have to continuing to pay the monthly insurance expense.

#Mortgage #MortgageInsurance #LPMI #BPMI #LenderPaidMortgageInsurance #BorrowerPaidMortgageInsurance #Market #RealEstate #Lending #HomeOwnership #Jumbo #FHA #VA #Conventional #Sacramento #BayArea #HomeBuyer #CreditScore #DownPayment #KathleenBeck #TrustedMortgageLender

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2017 Increasing Loan Limits

With so many changes taking place as we transition into this New Year, the Federal Housing Administration (FHA), Fannie Mae, Freddie Mac and VA increased loan limits for the first time since 2006! Two large changes that have helped create this shift are the steady rise in property values and the housing market continuing to recover. The new limits will be considered for borrowers looking for lending on or after January 1, 2017, and will remain in place through the end of the year.

The maximum loan limits have increased across the board, mainly being seen through one-unit properties as well as in high cost areas and FHA-insured Home Equity Conversion Mortgages (or reverse mortgages).

Maximum loan limits:

  • One-Unit Properties – Increase from $417,000 to $424,100(Sacramento Tri-County area).
  • High-Cost Areas – Increase from $625,500 to $636,150.
  • FHA-Insured Home Equity Conversion Mortgages (or reverse mortgages) – Increased to $636,150.

These increases mark a rising confidence in borrowers ability to repay their loans and have lead to more options for buyers when it comes time to choose a home due to a wider variety of financial lending options.

It is important to understand that lenders still work diligently to get borrowers approved and the documentation requirements have not changed. These increasing lending limits have allowed me to create a competitive landscape for my clients, focused on providing more financial lending options.

For more information regarding these lending limits shifting and the requirements for buyers to make a home purchase, I am always available to help my clients, friends and family and look forward to the new opportunities these increased loan limits will create for buyers in 2017.

#Mortgages #LoanLimit #Market #RealEstate #Lending #HomeOwnership #Jumbo #FHA #VA #Conventional #Refinance #Millennials #BabyBoomers #2017 #Sacramento #BayArea #HomeBuyer #CreditScore #KathleenBeck #TrustedMortgageLender

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Four Trends Will Shape the Housing Market in 2017

By: Kathleen Beck, Mortgage Lender

CA BRE #01058848  |  NMLS #243181

It doesn’t take much reflecting on 2016 to understand that 2017 will find creative ways to surprise us. Knowing the complexity of the market I want to break down what we can expect to see shape our buyers market for 2017 and also combine that with what Realtor.com annual market study to draw a picture of the key housing trends to come.

According to Jonathon Smoke, Chief Economists of Realtor.com, “The pace of growth is still strong and, for pricing, still represents an above-average level of appreciation.”

Key 2017 Predictions:

The West Will Lead the Way

Realtor.com expects metropolitan markets in the West to see price increase of up to 5.8% and sales increase of 4.7%. The Western markets also are dominating the 2017 Realtor.com Top Housing Markets, including Sacramento, Los Angeles, Tuscan and Portland.

Millennials and Baby-Boomers Will Move Markets

Both millennials and baby boomers are approaching life stages that naturally motivate people to change their living experiences such as, getting married, buying a home, having children, empty nesting and retiring. Jonathon Smoke predicts that millennials will make up 33% of buyers in 2017.

Slowing Down Price Appreciation

Home price increases are forecasted to slow from what was forecasted at 4.9% in 2016 to 3.9%. “Prices are still likely to go up at an above-average pace as long as supply remains so tight,” Smoke says.

Fast Markets with Fewer Homes

The average time it takes a home to move from “listed” to “sold”, is currently 68 days in the top 100 metropolitan areas. That average age of inventory (68 days) is 11 days faster than the national average. The conditions limiting home supply are not expected to change in 2017.

The number one thing I recommend for all my clients is to get your documents in order and lets talk about what the market is doing and when would be best for them to buy. Everyone’s timeline is different and making sure you feel comfortable with both what the market is doing and also what you want your financial future to looks like are always my top two priorities.

#Mortgages #Market #RealEstate #Lending #HomeOwnership #PriceAppreciation #Jumbo #FHA #VA #Conventional #Refinance #Millennials #BabyBoomers #2017 #Sacramento #BayArea #HomeBuyer #CreditScore #KathleenBeck #TrustedMortgageLender

 

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Understanding Mortgage Rate Locks

Mortgage rates locked down / fixed concept

Understanding Mortgage Rates Locks

There is no reason any buyer should settle for anything less than the lowest rate possible. But understanding how rates work and also that sometimes the best price on a loan isn’t always the best rate on a loan. Let’s understand how you can get the best possible overall terms and how that affects your mortgage rate.

Mortgage Rate Locks

A mortgage rate lock occurs when a mortgage lender makes a commitment to honor a specific interest rate for a specific period of time. Mortgage rate locks are stated in 15-day increments with the two most common rate lock periods at 30 days and 45 days. Usually, the longer a lender has to lock your rate the higher your mortgage rate. Rates should be locked for the number of days required to close your purchase or refinance your loan.

Here are important guiding principles when understanding mortgage rate locks.

  • Always get your rate lock agreement in writing
  • Understand your rate lock policy
  • Ask about rate-lock fees

All borrowers needs a rate lock in order to close their loan or refinance.

Mortgage Rate Lock Expiration

When a mortgage rate expires lenders are under no obligation to the original locked rate.

A rate lock extension can be acquired and is exactly what it sounds like, an extension to the original rate lock. The terms of the extension are agreed upon by the lender and the borrower and come at an expense leading to the importance of choosing your rate lock terms wisely.

If mortgage rates rise or drop, you don’t have the ability to get a new rate.

Floating Your Mortgage Rate

Prior to closing, if you chose to float your rate, you are assigned a mortgage rate at the prevailing market rate of that particular day. This can be risky as the unknown and availability of rates can fluctuate.

It is always important to make sure you are working with someone who you trust and is a great communicator. Understanding what rates are available to you and what your home buying or refinancing timeline is can play a huge role in your monthly payments. Ask as many questions as you can and make sure you are confident when you make the decision to lock, extend or float your mortgage rate.

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I hate to keep harping on you, but…

good-news

Get it, HARPing?  Corny, I know but it is exciting news and I really want you to know!  I first told you about the government’s HARP (Home Affordable Refinance Program) and how amazing it is for underwater homeowners.  The program was set to end in December but it has now been extended.

Homeowners who owe more than their home is worth will get another shot at shoring up their finances under a new streamlined refinance option announced today.

The Federal Housing Finance Agency said today that Fannie Mae and Freddie Mac will be offering a new refinance plan beginning in October 2017.

It was also announced that HARP is being extended until Sept. 30, 2017. We had been expecting the Home Affordable Refinance Program to expire in December.

The eligibility criteria with HARP is that the loan had to be originated before June 1, 2009, to qualify. But there is no such cutoff date under the new refinance option that begins later next year. Other main differences: The new option is expected to be more sustainable going forward, and homeowners can use it to refinance more than once.

More than 300,000 homeowners across the U.S. are still eligible to refinance under HARP.
Call me today to find out if you qualify.  I love to help!

new publicity shot kathleen beckKathleen Beck, Mortgage Lender
916.722.0395 direct
Kathleen@BeckHomeLoanPro.com / http://www.BeckHomeLoanPro.com
West Coast Mortgage Group
CA BRE# 01058848 / NMLS#243181

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Is there a Rate-Master?

iStock_falling-rates-houses_XSmall-300x219

How in the world are interest rates calculated?  Is there a Rates Boss that gets to decide whether they go up or down?  Not quite!  Here is a little insight into how mortgage interest rates are formed.

Mortgage interest rates have a very significant impact on the overall long-term cost of purchasing a home through financing. On the one hand, mortgage borrowers are seeking the lowest possible rates, but on the other hand, mortgage lenders have to manage their risk through the interest rates they charge. The lowest mortgage interest rates are only available to borrowers with the most solid finances and sterling credit histories.

While the financial health of borrowers affects the specific interest rates they can obtain, the general level of mortgage interest rates is influenced by a number of critical economic factors, as well as government financial policy. The factors that influence mortgage rates all represent basic rules of supply and demand in one form or another.

1) Inflation

The gradual upward movement of prices due to inflation is an important factor in the overall economy and a critical factor for mortgage lenders. Inflation erodes the purchasing power of dollars over time. Mortgage lenders generally have to maintain interest rates at a level that is at least sufficient to overcome the erosion of purchasing power through inflation to ensure that their interest returns represent a real net profit. For example, if mortgage rates are at 5%, but the level of annual inflation is at 2%, then the lender’s real return on a loan in terms of the purchasing power of the dollars they received in repayment is only 3%. Therefore, mortgage lenders carefully monitor the rate of inflation and adjust rates accordingly.

2) The Level of Economic Growth

Mortgage rates are also influenced by economic growth indicators such as gross domestic product (GDP) and the employment rate. Higher economic growth levels generally produce higher incomes and higher levels of consumer spending, including more consumers looking to obtain mortgage loans for home purchases. The upswing in overall demand for mortgages tends to propel mortgage rates higher, since there is only a certain supply of money that lenders have available to lend out. Naturally, the opposite effect results from a weakening economy. Employment and wages decline, leading to decreased demand for home loans, which in turn puts downward pressure on the interest rates offered by mortgage lenders.

3) Federal Reserve Monetary Policy

The monetary policy pursued by the Federal Reserve Bank is one of the most important factors influencing both the economy generally and interest rates specifically, including mortgage rates. The Federal Reserve does not set the specific interest rates in the mortgage market, but its actions in establishing the Fed Funds rate and adjusting the money supply upward or downward have a significant impact on the interest rates available to the borrowing public. Generally, increases in the money supply put downward pressure on rates, while tightening the money supply pressures rates upward.

4) The Bond Market

Banks and other investment firms market mortgage-backed securities (MBSs) as investment products. The yields available from these debt securities must be sufficiently high to attract buyers. Part of this equation is the fact that government and corporate bonds offer competing long-term fixed income investments. The yields available on these competing investment products affect the yields that are offered on MBSs. The overall condition of the larger bond market therefore indirectly affects the mortgage rates that lenders charge, since the lenders must generate sufficient yields for MBSs to make them competitive in the total debt security market.

One frequently used government bond benchmark that mortgage lenders often peg their interest rates to is the 10-Year Treasury bond yield. Typically, the average spread for MBSs above the 10-year Treasury bond yield is approximately 1.7%. MBS sellers must offer higher yields because repayment is not 100% guaranteed as it is with government bonds.

5) Housing Market Conditions

Trends and conditions in the housing market also affect mortgage rates. When fewer homes are being built or offered for resale, the decline in homes being purchased leads to a decline in the demand for mortgages and pressures interest rates downward. A recent trend that has also applied downward pressure to rates is an increasing number of consumers opting to rent rather than buy a home. Such changes in the availability of homes and consumer demand affect the levels at which mortgage lenders set loan rates.

Call me with any questions or to find out what current rates are!

 

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Original post:http://www.investopedia.com/articles/wealth-management/120115/most-important-factors-affect-mortgage-rates.asp

 

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Ready for Summer?

Is your house?

summer-copy

Clean the walkway
Pressure-wash the walkway, then replace damaged pavers or bricks, or just flip them over. If any pavers are sticking up too high, raise them, remove a little dirt, and drop them back in place. On concrete walkways fill in cracks with a masonry crack filler that matches the color of your concrete.

Spruce up the front door
Probe the weather stripping around the door with a screwdriver and caulk any post-winter gaps before tightening hinges that may have come loose due to shifts in temperature.

 

Prep the windows
Caulk any gaps in the framing and check that the mechanics are working by opening and closing each window a few times. Fill up two buckets: one with 1 cup of vinegar, 1 cup of ammonia, and 1 gallon of hot water; the other with warm water. Wash windows with the vinegar-ammonia solution first, then with water only. Dry with a squeegee.
Quick tip: Wash windows on a cloudy day. The sun may dry the solution too soon, leaving streaks.

 

Reinforce the fence posts
Replace warped or rotten pickets or posts, then give posts a good yank to make sure they’re sturdy in the ground.

 

Redo the driveway
Sweep away debris, patch cracks, then use a squeegee to apply a sealer. For blacktop or asphalt, try Black Jack Blacktop Ultra-Maxx 1000 Driveway Filler and Sealer ($34 for 4?3/4 gallons). For concrete, try Quikrete Concrete Crack Seal ($10 for a quart, both acehardware.com for stores).

 

Tidy up the flower beds
Clear out weeds and use a spade to redefine bed edges. Till the top inch or two of soil if it’s tightly packed, being careful not to disturb any bulbs below. Apply 2 to 3 inches of mulch.

 

Fill in the grass
Remove leaves and twigs and de-thatch dead grass with a metal rake. Ask for help choosing the right seed at a garden center, then apply it to bald patches or anywhere you want a thicker lawn.
Quick tip: Weed-killing fertilizer will work fastest if applied right before it rains.

 

Fix the sprinkler
Check for any winter damage, including broken heads and cracked pipes, by running your sprinkler one zone at a time. Any bubbling or geyser-like area needs a new head.

 

De-gunk the birdbath
Empty the bath and fill it with warm water and ¼ cup of chlorine bleach. (Bleach is safe if you rinse thoroughly, but you can also swap it for 1 cup of white vinegar.) Cover the bath with a tarp or plastic bag, and let the solution soak for 30 minutes before scrubbing and rinsing.

 

Hose down the air-conditioning condenser
Shut down the power on the electric panel, then clear away any leaves or branches lodged in the unit. Wash down all the coils with a garden hose. If you find any chewed wires, call a pro to repair them.

 

Clear out the gutters
Clean leaves and debris from your gutters. The next time it rains, stand outside and look for breaks or leaks in your gutters and downspouts.

 

Repair the siding
If your house has wood siding or shingles, inspect for post-winter rot, repair the damaged areas, then touch up any faded stain or chipped paint. A nylon scrub brush and all-purpose cleaner should eliminate dirt and mold on engineered wood, vinyl, or aluminum siding.

 

Inspect the roof
Grab a pair of binoculars and look at your roof from across the street. Locate curling, cracked, or missing shingles. Also look out for damaged metal flashing around the chimney, pipes, and skylights. Get in touch with a roofer for fixes.

 

Clean the deck
Use a deck brush or power washer plus a deck-cleaning solution (like Cabot Ready to Use wood cleaner pump spray, $12 a gallon, acehardware.com) to remove mold, dirt, and mildew. If the finish is worn, let the wood dry for a few days, then reseal it.

 

Wash the cushions
Most outdoor fabrics are safe to throw in a warm wash. Air-dry, then put the cover back on the insert while it’s still slightly damp to keep it smooth. If the fabric isn’t removable, clean it using a soft scrub brush, dish detergent, and warm water.

 

Scrub down the gas grill
Heat the grill for 10 minutes at a high temperature so it’s easier to scrape off gunk inside the cook box. Disconnect the gas line and let the grill cool before removing and washing the grates, burners, and drip tray in warm, soapy water. Wipe down the grill’s exterior before putting everything back together.   Tip: To check the grill’s propane level, feel the outside of the tank. The area with fuel will be cooler than the empty portion.

Call Kathleen
She will help you refinance to build a pool, get a whole house fan or move to a more energy efficient home!

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10 Simple Ways To Winterize Your Home And Stop Throwing Away Money

‘Tis the season to crank your thermostat. Unfortunately it could cost even more than normal. Americans will pay 15% more for heating expenses than last year, according to the EIA.

At this point you’ve got no excuse not to follow this simple guide for winterizing your home.

Dodge the draft

Dodge the draft

Problem: Cold air is rushing in from underneath your door, and warm air is rushing out.

Solution: The draft snake, adopted during the Great Depression era, is one of the easiest ways to cut back on energy waste. A draft snake can be easily made by rolling up a towel or filling up a pouch of fabric with kitty litter or sand, advises The Daily Green. Or you can buy one pre-made.

Money/Energy Saved: According to the U.S. Department of Energy, drafts can waste 5 to 30% of energy use per year.

Bubble wrap your windows

Bubble wrap your windows

Problem: You suspect your windows are as old as your grandparents and cold air is leaking through the cracks.

Solution: Tape bubblewrap on your windows to trap the pockets of air that cool down your home. Although it may look funny, the bubblewrap will still allow light to come through and you’ll be saving some major dough, advises Life Hacker.

Money/Energy Saved: Taping up bubblewrap can avoid drafts which waste 5 to 30% of energy usage per year, according to the U.S. Department of Energy.

Caulk any gaps

Caulk any gaps

Problem: Little gaps in windows, doors, or cracks in the walls are letting cool air in, raising your energy bill.

Solution: The Daily Green offers a test to find out where to seal these gaps: Have a friend stand outside the suspected window/door/wall with a blow dryer while you hold a lit candle inside. If the dryer blows the candle out, then it’s time to seal those cracks using caulk.

Also check the caulk around your doors and windows outside to see if they’ve deteriorated over time.

Money/Energy Saved: Sealing up drafts will save you to up to 30% of energy use annually, according to the U.S. Department of Energy.

Change the direction of your ceiling fans

Change the direction of your ceiling fans

Problem: The air in your home feels hot and trapped, but turning on a fan only produces cool air.

Solution: If you have any ceiling fans inside your home, know the rules: Counter-clockwise rotation produces cooling breezes and clockwise rotation produces warmer air.

Money/Energy Saved: This method will cut your heating costs by 10%, according to The Daily Green.

Control your thermostat

Control your thermostat

Problem: You want your home warm so you keep the thermostat high, but your wallet is suffering from the high energy bill.

Solution: Set your thermostat to 50 or 55 degrees when you go to bed and work. You won’t enjoy the warmer temperature while you’re asleep or away from the house, anyway. You can also purchase a programmable thermostat.

Money/Energy Saved: Turning down your thermostat 10 to 15 degrees for eight hours a day can save 10% per year on your energy bill, according to Brighter Planet.

Pile up on insulation

Pile up on insulation

Problem: Heat is rising right out of your home, leaving you cold and miserable.

Solution: Loading up on insulation is one of the best ways to save your energy bill so add more between your walls, attic floor, and basement ceiling to stay toasty.

Money/Energy Saved: An insulated home loses a quarter of its heat through the roof, according to Energy Savers.

Turn off your A/C water valve

Turn off your A/C water valve

Problem: You have an A/C with a water valve that you suspect has been leaking, which can clog up your water pipes.

Solution: Shut off the A/C water valve to prevent excess water from collecting in the equipment. Drain all air conditioning pipes, says The Green Daily.

Money/Energy Saved: Doing this during the winter will save you from having to buy a new A/C unit next summer.

Lower your water heater’s temperature

Lower your water heater's temperature

Problem: You’ve unknowingly kept your water heater on the default setting.

Solution: Conventional water heaters are typically set at 140 degrees Fahrenheit, but most households only need a setting of 120 degrees to be comfortable. Check your water heaters and lower them to 120 degrees.

Money/Energy Saved: Lowering it by 20 degrees will save about 6 to 10% on your bills, says Energy Savers.

Do you have ideas to winterize your home?  Please email me with your suggestions and I’ll share! 

Please call or email me with any questions… Let me help make your dream of homeownership come true. I specialize in finding you the right loan that meets your specific needs and financial goals. With mortgage rates still near historic lows, make this year the year to make your homeownership dream come true. Please email me today Kathleen@BeckHomeLoanPro.com or call 916-722-0395 to get started on your dream of home ownership. Kathleen Beck A person you can count on. West Coast Mortgage Group 2716 Broadway Sacramento, CA 95818 NMLS#243181, BRE#01058848.

 

 

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