Tough to get qualified?

This week there are several important reports coming out to gauge where the economy is and is going. With the current volatility in the mortgage industry, true knowledge and insight are more valuable than ever, which is why I monitor the market throughout the day and keep you informed of changes that impact you.

Even though the media is saying it’s tough to get qualified for a mortgage I am not finding that to be true. Let me know what I can do to help your clients get qualified! Make it a great week!

Market Update

Market Update

Mortgage Bonds are trading higher this morning, despite a report that manufacturing in NY is stronger than anticipated.

Normally a better-than-expected economic report would be bad for Bond prices. However, the declining prices of oil, precious metals and other commodities have decreased inflationary pressures and have helped push Bonds higher so far today.

We got a rally late today for the better I recommend floating for now.

Last weeks rates improved slightly

Last weeks rates improved slightly as bonds tried to rebound off the previous weeks losses. Philly Fed President is continuing to warn about inflation and it’s possible that fed rate hikes will be coming shortly. This is a good thing for the bond market because mortgage rates should come down. Following that your wallets at the pump should hopefully stay full. See the newsletter below to get some helpful gas saving tips that you can pass along to your clients.

Make it a great week!

DesertFHA.com

Clients & Friends,

Happy Friday! Please don’t forget to RSVP for the event on Monday morning at 8:30am. RSVP at http://www.DesertFHA.com The flyer is attached. Thank you if you’ve already RSVPed. I’ve got your seat reserved.

Market Update

New Home sales for June were reported at 530,000–which was far better than expectations of 505,000. In addition, Orders for Durable Goods came in well above expectations and the Consumer Sentiment Index shocked the markets with a very robust reading.

The positive readings are helping to strengthen the US Dollar and even lower Oil prices. As a result of these shifts, a Fed rate hike may be on its way in within the next few months–though probably not at next week’s Fed meeting.

Writing an FHA and Nehemiah Program Offer: Structuring the Purchase Agreement


These are the instructions for writing an FHA and Nehemiah offer.

First and foremost, the seller must pay the tax service fee of $81.00.

Check the FHA Loan box.

Page 1:

If asking the seller to pay for a closing cost credit FHA allows a 1-6% closing cost.

“Seller to contribute 3% for non-recurring and recurring closing costs.”

If asking the seller to contribute toward the Nehemiah Program the seller can be asked to contribute up to 6% plus a $599 processing fee for re-sell (Short Sale and Foreclosure) properties and $399 for new construction.

“Seller to contribute 3% of the sales price toward the Nehemiah Program plus $499 processing fee.”

Page 6: Other financing terms (line 24)

“The seller is aware the homebuyer is receiving downpayment assistance through the Nehemiah program as set forth in the related Participating Home Agreement.”

Addendum – Participating Home Agreement to be completed and submitted with the offer.

0. Print the attached Participating Home Agreement to complete and
submit with offer.
1. Calculate the percentage of downpayment assistance requesting
1-6%. Typically 3%.
2. Add the processing fee. $499 for re-sell properties and $399 for
new construction.
3. Add the two dollar amounts together for a total dollar amount due
to the Nehemiah Corporation of America.

The Fed kept interest rates

Rates closed the week down on some products and flat on other.

·The market is still volatile and rates are changing everyday.
·The Fed kept interest rates at 2.00% and 5.00% for the prime rate. This is what I predicted last week would happen.
·Mortgage pricing went on a rally today and things are looking pretty good at week’s end. We are currently testing levels of support. I would encourage your clients who may be purchasing in the next 30-45 days to get locked in if they have an offer accepted. Things are getting good.
·Mortgages have shifted a lot in the “jumbo” market and make sure you see the difference for the 30 year fix and 5 year ARM for JUMBO loans!

I am your FHA expert!

Friends,

We are off to a great start this week with the up-coming reports for the market. The Fed will be talking about plans to maintain the fed funds rate where it is or to hike it hedging inflation. Remember, if the Fed increase the rates it is good for mortgage pricing and interest rates will go down.

How often do you need to change your oil for the car? It depends, so see the newsletter below.

Oh by the way, I’m never to busy for any of your purchase or refinance mortgage referrals! I am your FHA expert! Make it a great week!

Get a Good Faith Estimate

Market Update

Rates closed the week down on some products and flat on other.

The market is still volatile and rates are changing everyday.
Get a Good Faith Estimate from your lender when shopping for a mortgage to understand the costs involved with paying points or not paying points.
After coming off the poor performance week in the market mortgage pricing has gotten better this week with a more than 100 bps increase in the market.
In other news, oil prices bumped higher once again after news of a potential strike at a Chevron plant in Nigeria, which is Africa’s largest oil producing nation. If oil prices continue on their current path, it may apply selling pressure to both Stocks and Bonds.
I’m predicting that if inflation continues to be a concern interest rates will rise.

The markets volatility

The markets volatility sure isn’t loosing any gas and slowing down. That’s right take a look at this week’s newsletter which continues to discuss the market volatility and inflation concerns by investors. What will it take to get oil to $100 a barrel down from $130? Some say a fed funds increase.

Also, have you noticed signs that tomatoes are in trouble? The FDA has warned about salmonella in red raw tomatoes. See below.

Make it a great week and stay hydrated out there! IT’s HOT!