HVCC News!

We have all no doubt already run into flaws with the HVCC Legislation already in place. I know I have. I could go on and on about my views, but I wanted to report that some new legislation has been introduced. Now this isn't in effect yet, but there has been enough fight by the NAMB and NAR that people are starting to take notice. Representatives Childers (D-MS) and Miller (R-CA) introduced legislation requesting an 18 month moratorium. This will be great and hopefully this will allow enough time for either the kinks to be worked out or the HVCC in its original form scrapped altogether. The HVCC was put into place for good reason. However, the problem is that it was rushed and the full ramifications were not thought out. NAMB President Marc Savitt was quoted as follows

"In the period of time since its implementation, the HVCC has increased costs to consumers and decreased the quality of appraisals and has provided a lever of uncertainty in an ailing housing market. Tens of thousands of consumers have already been robbed of their opportunity to enjoy historically low rates by Attorney General Andrew Cuomo's rule."

You can view the full NAMB press release here.
Everyone keep your fingers crossed and hopefully this will get done!

Brought to you by:
Flat Branch Home Loans, Inc.

Comparing Closing Costs

As most of you are aware, interest rates have taken a beating lately. This has left numerous people that are already in the purchase or refinance process a bit frustrated. Most people I encounter have found us through a referral source that was based on our reputation for providing our borrowers with competitive prices to go along with great service. With this being the case the borrowers seem to be less concerned about rate and fees because we have come highly recommended. Now don't get me wrong, there are still many shoppers out there and there is nothing wrong with it. This type of volatile environment naturally breeds more shoppers as well. When rates are stable the shopping process for a borrower is a bit easier. When rates are super volatile it can be quite a headache. I have dealt with several rate and fee shoppers this week and I sense their pain. They talk to a lender and get a quote, talk to a few others, and then by the time they make their decision rates have changed again. Therefore the subject of this quick post is meant to help shoppers compare lenders costs. Every lender has different fees and they all seem to disclose them a bit differently. When providing a Good Faith Estimate a loan officer should itemize ALL fees associated with the transaction. What I have found is that some of our competitors only list their fees. I suppose their thought process is that escrows, prepaids, title, etc. will be the same no matter who the lender is so why list them and confuse the borrower? The reason they should be itemized is because they WILL be there and the borrower needs to be aware now and not surprised at closing! So when you are out shopping around make sure all these fees are itemized and find out which ones go to the lender and which ones are 3rd party fees. This will make the comparisons much easier. When it comes to rate just be patient and ask questions. Find out if there are points associated with your rate quote. Find out if the rate could be locked that day? If you have a property address and they can't lock that day then you know they are sugar coating the rate. Some loan officers do this so that their rate sounds good and then they rely on the market to improve to lock you in at the quote. A very risky game to play! If someone start dancing around your questions then they either are hiding something or simply are not experienced enough. If you shop this way you will be able to tell who the experienced and professional loan officers are.

Happy Shopping!

Brought to you by:
Flat Branch Home Loans Inc.

Home Inspections

Buying a new home is an exciting time. I love seeing the joy on clients faces when that new home or dream home is finally theirs! However, I wanted to take this time to talk briefly about one aspect of the home buying process. This is the Home Inspection. This is one area that we as a lender do not handle. As a buyer it is your choice if you want one or not and once you enter into a contract it is the next step. Just don't get so excited to get to the closing table that you skip this step or get scared away by the cost. This is a very important aspect in the process. Nobody wants to close on the home and then find out all new plumbing is necessary or foundation problems arise. These are just a couple things that can be uncovered in a home inspection. I am sometimes surprised how a couple can get so emotionally attached to a home that they are willing to overlook certain issues. If you have ever owned a home you realize that unexpected things will come up from time to time and having the money to address them is key. (This is where that $8000 Tax Credit can really come in handy) Wouldn't you like to do your due diligence ahead of time to fight off as many future problems as necessary? So get with your realtor and have an inspection done. They will know of some good inspectors and we as a lender do as well. Just ask. The small cost of the inspection is nothing compared to the money it could save you if you catch a problem now instead of after its too late! Almost everyone asks for seller paid closing costs anyway so this is just another item that that money can be used for. It is a great time to buy a home, just don't rush it and things will work out just fine!

Brought to you by:
Flat Branch Mortgage Inc.