San Francisco Ca, As you have heard, basically…EVERYWHERE IN THE MEDIA, lenders require A LOT of documentation to close a loan when purchasing or refinancing a home in this day and age. Loans are definitely fully documented and without question YOUR BEST DEFENSE IS A GREAT OFFENSE!

That being said here is what you must have prepared with your lender and agent when prepared to write offers:

• A Cover Letter – Tell your story and make sure your lender know your story. Don’t forget to include any skeletons dangling in your closet, collections, alimony, child support or unpaid IRS liens. Paint a pretty picture but explain any skeletons.
• A completed loan application – review for accuracy.
• If you own property already tie all mortgages from your credit report to your properties.
• If you own property already submit mortgage statements and proof of insurance and property taxes.
• Tri Merge Credit report – your lender will pull this. Get a copy, don’t pull your own. Especially if you are writing on bank owned properties. Most bank owned properties want you pre approved with their institution. That means if you go out and look at offers on 5 houses owned by 5 different banks you may have 6 credit checks! Keep them to a minimum.
• Photo ID.
• Income documentation – 1 month paystubs, 2 years w2’s, 2 years complete tax returns, and business returns if the borrower owns more than 25% of a company.
• Earnest money deposit receipt, copy of check and proof cleared borrower’s account.
• Most recent months bank statements or (Per AUS findings).
• Provide letter of explanation for all large deposits (Anything Greater than 10% of gross monthly earnings must also be documented) including paper trail- cancelled checks, corresponding bank statements, etc.
• Gift Letter and Paper trail: Gift Letter, Donors ability to gift and transfer from donor to borrower with final balance in account.
• Contract fully executed.
• Short Sale approval.
• Copy of any inspections and clearances (Per contract or appraisal).
• Preliminary Title Report (Usually received 2 days after escrow is opened).
• HOA certification form and copy of Master Liability Policy and Insurance Policy for a condominium.

While this may sound a little overboard this is exactly what is needed upfront to close FAST in today’s market. For more information on getting pre approved for your California home loan text or call 510.282.5456, or email us at info@garrick.biz

San Francisco Bay Area Home Affordable Refinance Guidelines include:

- Removing the 125 percent loan-to-value.

- Waiving risk-based fees on borrowers who take shorter term mortgages and reducing those fees for others.

- Eliminating the need for a new property appraisal where there is a reliable AVM (automated valuation model) estimate provided by the GSEs

- Eliminating certain representations and warranties required of lenders to obtain the GSE guarantee. This will protect lenders from many of the buy-back requirements they face under current guidelines

- Extending availability of the program through the end of 2013

For more information on getting pre approved for your California HARP 2.0 Refinance home loan text or call 510.282.5456, or email us at info@garrick.biz

Direct Link:

http://youtu.be/5N0ouGW1h-A

On March 7th HUD announced that FHA mortgage insurance is going up on April 9th for ALL FHA loans. A .10% increase.

Not only that but FHA is raising the upfront mortgage insurance premium from 1% to 1.75%

THEN they announced some good news – For case numbers assigned after June 11, 2012 which are refinancing an FHA loan which was endorsed prior to June 1st 2009 there will be a decrease to the monthly mortgage insurance to just .55%.

Now this is huge because rates were anywhere from the high 4’s to mid 5’s in 2009 and FHA mortgage insurance was .55%. Since then, or course, we have seen rates go down but mortgage insurance keeps going up. Every year!

Let’s take a look at an example –

Say you have a $300,000 Loan

30 Year fix 5.25%    Payment = $1656        MI .55% = $137.50    Payment = $1793

30 Year Fix 3.75%    Payment = $1389      MI 1.15% = $287.50    Payment = $1676

*After June 11 2012* 3.75% (est)  Payment = $1389   MI = $137.50   Payment = $1526

 So this is a great step in the right direction for helping FHA homeowners who don’t want to throw away money on monthly mortgage insurance.

If you are a homeowner looking to see if you are eligible contact me to see when your FHA loan was endorsed. If you are a Realtor make sure you dig through your closed database and see if your clients qualify. There is never a better time to ask for a referral than after you save somebody Money.

If you need further assistance please feel free to comment, call 510.282.5456 or email info@garrick.biz

Related Links:

FHA Mortgage Insurance is on the Rise

How Long Until You Can Buy Again After a Short Sale, Foreclosure or Bankruptcy

Direct Link:

http://www.youtube.com/user/RealEstateBuzzz?feature=mhee#p/u/0/8GWw3OWohcI

The Buzzz is growing for the “Home Affordable Refinance Program” revisions, referred to as HARP 2.0. Well HARP 2 is finally coming Spring of 2012!

Related Links:

Feds Announce Bay Area Real Estate Mortgage Interest Rates to Stay Low Until 2014 in Alameda

Harp 2 Guidelines for Refinance Appraisals Waived Alameda,CA

Direct Link

http://www.youtube.com/user/RealEstateBuzzz?feature=mhsn#p/a/u/0/FQw1fPRZuLM

The big news this week is HARP.

THE Home Affordable Refinance Program has been “re stringed”

HARP was designed to assist distressed borrowers who are current on their mortgages but “underwater” meaning they owe more than their home is worth.

It’s no surprise several studies identified these borrowers as being likely to strategically default on or walk away from their homes and foreclose.

While regulations won’t be finalized until November 15^th the changes to “Harp 2” include -

•Removing the 125 percent loan-to-value.

•Waiving risk-based fees on borrowers who take shorter term mortgages and reducing those fees for others.

•Eliminating the need for a new property appraisal where there is a reliable AVM (automated valuation model) estimate provided by the GSEs

•Eliminating certain representations and warranties required of lenders to obtain the GSE guarantee. This will protect lenders from many of the buy-back requirements they face under current guidelines

•Extending availability of the program through the end of 2013

These changes may allow double the homw owners the opportunity to refinance but still will help only borrowers who are current on their payment and who have loans guaranteed by one of the GSE’s, Fannie or Freddie prior to July 2009.  Thus it will impact only a small percentage of underwater borrowers.

Credit Suisse estimates 720k borrowers will be able to refinance which translates to between $2 and $3 billion in interest savings; so HARP 2 will not have a huge effect on the economy or on the real estate market.  

To find out if your home is owned by Fannie or Freddie you can contact my team at info@garrick.biz .

The program is set to come out November 15^th  2011.

Related Links…

The New Government Refinance Program Alameda

http://the-buzzz.com/2011/08/31/the-new-government-refinance-program-alameda-mortgage-minute-real-estate/

Don’t Stop Believing – Camille and Kennerly -

http://www.youtube.com/watch?v=XkINiWyyfyI&feature=related

I searched “2 harps” and now my wife and I are huge fans!!!!

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