Thursday, August 23, 2007

 

Where have all the programs gone?

The era of the one page rate sheet is here!

As a mortgage banker, my job is to find the best investor for my clients. In the past that meant sifting through pages and pages of rate sheets and programs I receive daily from investors. Well folks, I am here to tell you my job has just become simplified.

A typical investor rate sheet could be up to eight, even ten pages long containing so many programs and options a mortgage banker would need to attend a class on how to interpret each investor's display. Fast forward to August 2007, the average rate sheet in today's market being one to three pages. Many, many programs have gone by the wayside, hopefully to return someday in the near future.

Here are some changes in the mortgage lending industry you should be aware of -

No Doc loans are gone. Stated income loans typically require scores of 680+ and are only for the self employed. Second mortgages and lines of credit are now only offered to the best credit borrowers. Pay Option arms are very hard to find. Interest only loans now must be qualified at fully amortized payments. Most programs are now looking for a minimum of two months reserves in the bank.

Remember, a loan is not completed until it has funded - not just closed. Nightmare stories are posted daily on the net of loans that have closed only to have the investor close their doors during your three day right to cancel or even worse, before the deed on your new home was drawn up. It has become a realtor's nightmare! If you are in the midst of home financing, ask your banker what investor the loan is being sold to. Make sure they are not an "ailing" lender.

Do your research and do not get left stranded at a closing table. Check out www.mortgageimplode.com for up to date lender implosions. You have a right to know!
The scenery of the mortgage business has changed drastically. Loans are becoming much more difficult to qualify for. Yes, even for people with A+ credit. Now more than ever is the time to contact your trusted mortgage banker and make sure your financing is maximized to your lifestyle. Do not get left behind.

Call me for any mortgage related questions and remember to visit our website at www.openmortgage.com for high quality calculators, actual customer testimonials, secure online application and local links. Call me -- I am here to help.

Lewis Poretz
President
Open Mortgage
877-345-OPEN
www.openmortgage.com

Labels: loan programs

posted by Lewis Poretz  # 8/23/2007 08:42:00 AM

 

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