Mortgage Latest News Selling Or Buying- what is going on?
If you are thinking about selling, buying, or possibly refinancing your home, you’ve probably been doing a little research into mortgage rates. Yes, they are on the rise and have been for a while.
Per my reviews- it is stated by MBA that mortgage lending will be dropping to 9% – $2 Trillion in 2023.
Mortgage Rates Vary
Mortgage rates vary with different lenders/brokers, and even within some states. The mortgage game can be a frustrating, stressful, and exhausting experience. But there is something out there to help make the process of researching rates and payments a little easier for you, and it’s free!
We are here to help you get through the hard part and get your needed questions answered prior to reaching out to a lender. It is important, and mandatory that you understand exactly where mortgage rates stand, the application process, and how you can get approved.
Some of The Latest News – re Harvard Education
Havard states that the Census Bureau reported that 44% of households lost income. Today, interest rates edged upward slightly also per MND.
As reported by Mortgage New Daily as of Friday, October 21, 2022, some lenders are publishing their best interest rates for 6.66%(+-) 15-year term, and 7.32% (+-) 30-year term. (these are not quotes-only trends of what is seen online. Mortgage News Daily indicates that rates are scary but that rates depend upon the lender, some lower and some are higher. *check more than one lender’s rates if you are in the process. A one-half point can make a difference in your PITI payment. (principal, interest, taxes & insurance).
How To Know If You Are Ready To Make a Commitment
As we post here often, it is always best to have your mortgage application documentation reviewed and ready for the Loan Originator before jumping in. There will be questions and since the pandemic, the first one is going to be, “are you employed?”
The second is going to be, for how long, or “have you been laid off during the pandemic?” The reason for the latter question is to know about your employment stability.
What To Review
Your current paystubs for at least the last 60 days will help the lender determine your base, stable and ongoing income. If you are paid monthly, your gross base income will be easy to recognize. The lender will want to know exactly how you are paid, and your gross base income for each pay period. This means bi-weekly, bi-monthly, monthly, weekly, etc.
How does this work?
If you have never made a mortgage application and need to know about paystub, W-2 income, etc…take a look here.
Self-employed applicants can view how tax returns are used here.
* self-employment is unique to the type of self-employment. A sole proprietor will use the schedule C evaluation. The bottom line income (net income), plus depreciation to get to a quick income calculation if that is sufficient for qualifying. You cannot use the gross amount of income/sales, etc. Gross sales minus expenses.
*for other types of self-employed income – the underwriter is going to use an income analysis worksheet.
Here is Self Employment Cash-Flow Analysis Calculator re Radian.com – very detailed and gives you what can be added and what is not. Very useful for the lender and the application so that you have an idea of how self-employment income works.
Assets
Bank Statements for at least 60 days. Reviewing your deposits over and above normal salary deposits. All assets must be verifiable and explained if there are large increases. Assets used for closing and downpayment must come from your own funds.
Read about assets and closing costs… and funds for closing here.
Housing Prices Per CNN Are Falling
My guess is that sellers are trying to take advantage of what they think might be to follow if mortgage lending keeps going south again. We will just have to see how the economy influences mortgage lending going forward.
Things to Keep in Mind While Searching For the Right Mortgage or Lender
- The motto of ‘know before you go’ still exists and is necessary.
- Don’t let your friend influence your decision about where you need to live or what mortgagor you need to use. Everyone’s needs are different. Fit your needs, which include income, assets, property, etc.
- There are now many lenders who can complete your mortgage application online. However, make sure they are a bonafide lender/broker/bank. Most of the paperwork can be emailed, faxed, or mailed to the lender.
- Take your time in the process by asking questions that fit your situation. If you cannot get answers to your questions, move on.
- If a lender cannot give you their predominate interest rate-you can look on different websites to see what interest rates are ranging. Some will quote you a rate that pays them more money on the back end. That is okay if you are seeking to save money on the front end. However, if you are looking for the lowest rates-beware.
Getting the right mortgage product that best suits your financial capacity, and need is paramount.
Getting A Mortgage During The COVID Crisis
