video: DID you know???

In this Vlog, Chad asks the question, Did You Know, about three mortgage products that could be beneficial to you. The FHA Streamline refinance, the DU Refi Plus and a 10% down JUMBO loan. If you would like to know more about these or any other mortgage related products, feel free to contact Chad at chad@chadstallings.com

Video: Return of the Vlog!

After a short hiatus, Chad is back spreading the mortgage good news. In this video Chad talks about rates, FHA changes that are coming up and some current Phoenix housing data. If you have any comments for Chad you can always reach him at chad@chadstallings.com

help me help you, help me.

Rates are stupid low right now. Home prices are fantastic. A number of people are taking advantage refinances. Buyers are coming out of the woodwork. This is all great news, however you have to be prepared for the consequences. With mortgage applications going up due to the aforementioned circumstances, underwriters are rapidly getting backed up. This is just an effect of the fact that there are simply fewer “bodies” in the mortgage business then there use to be. Everyone deals with the ongoing dilemma of do I hire more people now to help with the volume or wait and see if the volume lasts long enough to sustain the overhead that comes along with that. Some may disagree with this line of thinking but it is a reality in today’s economic “environment”.

What Can I Do??

I am glad you asked. Before a loan can (and really should) be submitted to underwriting, the supporting documentation needs to be in the file and it helps if an appraisal present. There is some wiggle room with the appraisal because these days you are most likely going to get at least one “approval with conditions” so you can include the appraisal in the re-submit. Having the documentation in the file quickly is key to helping the process along therefore one thing that you can do is to get your paperwork to your lender as quickly as possible. Have your financials ready to go, don’t pack or shred items like W-2’s, paystubs, bank statements, or tax returns. Agents can help by making sure that their clients are providing what the loan officer is asking for in a timely manner and making sure that the customer is returning the LO’s phone calls promptly. If you are refinancing, then in addition you can let the appraiser in your home as soon as you can so that it comes back to the lender quicker.

Keep in mind that everyone involved in the transaction what the same thing, to close soon and on time. We are all working towards the same goal so let’s help each other get there together.

You can contact me at chad@chadstallings.com

Video: HVCC on the brain…again

In this vlog Chad speaks again about HVCC and its effect on the Real Estate industry. The introduction of HVCC has not helped the quality of appraisals, it has raised the cost, and made the process more difficult all of which affect the consumer in the end. To comment please email Chad at chad@chadstallings.com

Mission Impossible: Get a Home loan

As we meander through this economic downturn, we continue to see more and more regulations coming down on the real estate finance industry. That is because, if you didn’t know, every mortgage professional is a crook that took advantage of the common folk. Now of course I don’t believe that every mortgage professional is a crook although there were a number of them in our industry. Most of those types are out of business now due to the market conditions. However it seems as though Washington does look at us like that (even though they were the ones who told us to issue more loans to raise the homeownership levels in the US). And as is typical with Washington these days, the results of the regulations that are supposed to make the “streets” safe for someone looking to get a mortgage are having major unintended consequences that are affecting the consumer in the end.

HVCC, which was to clean up the appraisal industry, has failed by raising the cost of appraisals and has lowered the level of quality that we are seeing. The new Good Faith Estimate that was supposed to promote more clarity with the fees went from one itemized page to four pages with lump sums. Oh and there is no down payment, total monthly payment or true “cash to close” figure not to mention that it doesn’t even require signatures. All this with guidelines getting stricter and require fees going up ie FHA Mortgage Insurance.

While it may seem that the mortgage guidelines are making it an impossible mission to get a home loan and our good buddies in Washington, who know whats best for us, keep hitting us with regulations that seem to punish the consumer in the long run, there seems to be light at the end of this tunnel. You are now able to do a 5% down conventional loan in AZ. That was gone for a good 3yrs. The foreclosure numbers seem to be leveling off in certain areas. I’ve even run across a lender that is looking at a loan that “makes sense” rather than just by the hard numbers. Mortgage rates are and have been at historic lows. This along with low home prices makes in a fantastic time to buy.

 So I don’t want to be all gloom and doom. Getting a mortgage these days is difficult, but not really impossible. Common sense applies. You need to have decent credit, a job and some savings. You must let your mortgage professional guide you through the twists and turns and show you the path to the finish line. If you help me help you and remember that we are all going for the same goal, then you will help make the impossible, possible.

By the way, this message will self destruct in…well, you get the idea.

VIDEO: HVCC

In this video Chad talks about HVCC and how it came about along with his opinion about it. If you would like to comment on HVCC or any other mortgage related topic, you can reach Chad at chad@chadstallings.com or vist www.loanbychad.com

FHA Case #’s, Appraisals and YOU!

So why is it that such a large percent of the loans that are being done these days are FHA loans? Well the answer is that FHA allows for lower down payments, less pricing hits for credit scores (this means great rates whether you have a 680 fico score or a 780 fico score) and the underwriting guidelines that are a bit (small bit) less risk adverse then Conventional guidelines. On top of all of that, in Maricopa county the maximum FHA loan amount limit is $346,250 for a single family residence. The median home price for a single family resale home in Maricopa county right now is about $145,500.

So what???

So if you are a buyer or a seller in a price range that is under the FHA limit for the county, you need to be aware of the rules for a FHA case # and a FHA appraisal.

Once it is determined that the home financing on a particular property is going to be FHA, the lender will order a Case # with HUD/FHA on that property. Each home loan has a Case # that is attached to the property address. If no loan is consummated then the case number should be cancelled. However sometimes it is not and when another lender begins a loan on that property they may have to request that the Case # be transferred to them from the previous lender. This transfer should be an easy process however, depending on the cooperation of the lender that holds the case number, there could be a delay in the transfer which can then cause a delay in the FHA appraisal.

What does this have to do with the appraisal?

Each FHA appraisal, according to HUD/FHA, is required to have an accompanying case number attached to it. Without that number, there is no appraisal. Without the appraisal there is no loan. Without the loan there is no purchase etc. etc.

Pay attention sellers, heres the rub.

The HUD/FHA guidelines state that once a FHA appraisal is completed, that appraisal and case number are “stuck” to that property for 6 months! So if you are a seller and the FHA appraisal comes in lower than the agreed upon sales price, and the buyer chooses not to make up the difference and you choose not to renegotiate, your “stuck” with that FHA appraisal for SIX months! (I will touch on appraisals and the process in another post)

Big deal, I’ll find another buyer.

Maybe, but you would be limiting yourself to Conventional or cash offers only. With the amount of homes on the market these days, and a large percentage of the buyers using FHA financing, this may not be a wise choice. The buyer may go elsewhere with minimal financial loss to them.

Make sure that, whether buyer or seller,  you are aware of the rules of the game when it comes to FHA purchases. If you want to know more about FHA case #’s and/or appraisals, or have any comments in general, you can contact me at chad@chadstallings.com or visit my website at www.loanbychad.com