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Matt Steinmetz

To some it’s obvious and to others it’s not, but the following items are critical during the loan process.  If you have questions about these or are in the middle of your loan process and have to do one of these let me, or your loan officer know (always tell your loan officer) so you can be sure you are not affected negatively.

IMPORTANT

It is critical to the success of your loan package that you avoid doing any of the following until after your loan has closed escrow:

1. Do not change or quit jobs.

2. Do not switch banks, make cash deposits or move your money around.  If you do please keep a complete crystal clear paper trail that shows all money transfers and deposits between accounts.

3. Do not pay off bills. You should continue to pay the amount required, but do not assume that paying a debt off will alwasy benefit your score or loan approval.

4. Do not make any major purchases.  Adding debt can be detrimental.

5. Do not close credit accounts or apply for any new credit cards or loans.

If you must do any of the above, PLEASE CONTACT YOUR LOAN OFFICER IMMEDIATELY. Audits are done just prior to funding and you may be placing your loan in jeopardy if you do not notify your lender of any changes.

Hope that helps!  Please share and leave comments here.

Matt Steinmetz

The following items are normally needed during the loan process.  Your lender may require more or less but this gives you a basic idea of what to expect.  All of these items may not apply to you, for example if you are not divorced you can ignore that requirement.

• Most current paycheck stubs (cover 30 days) for all jobs, disability, etc
• W-2 or 1099s for years 2009 and 2010 for all employers and all income received
• Complete copies of your Federal tax returns with all of the schedules for 2009 and 2010 (page 2 signed)
• Divorce decree/marital property settlement or Legal Separation paperwork if applicable
• Most recent 3 months bank statements for all bank accounts (all pages)
• Current quarterly statements of investment accounts (retirement, 401K’s) (all pages) if being used for down payment, reserves, or for paying closing costs
• Complete bankruptcy papers, including final discharge document if applicable
• Landlord name, address and phone number for last 2 years (if you rent)
• Proof of current homeowner’s insurance policy on your home
• Mortgage statement for your Current Mortgage(s) (for all properties) and all houses
• Clear and enlarged copy of Drivers License for each borrower
• Copy of Trust paperwork if title is held in a Trust or Income comes from a Trust

Let me know if you have any questions!

Matt Steinmetz

This video by Matt Steinmetz covers some details about how tax returns affect you qualifying for a mortgage loan.

Please share with the buttons below and leave a comment.

First off this video is a little long.  I find myself pressed for time this holiday season so I shot this in one take just to be sure to get this out.  Watch it in parts if you must as it’s about 5-6 minutes long.

Click here to view the embedded video.

The updates I received are both encouraging and discouraging!   They’ll raise you up and bring you down!  Who knew loans could be so dramatic, like a Hollywood picture show!

If you prefer to read here it is:
No Loan To Value limit on “refi plus” loans- Refi Plus is a manual underwritten loan through your current servicer.
· DU refi plus loans will NOT be eligible until March 2012- DU Refi Plus loans can be originated by any licensed originator once the automatic underwriting systems are updated.  Until then you can only apply trough your current servicer.
· No Combined Loan To Value Limits- those with second loans can still qualify
· 105% LTV for fixed period (5 or greater) ARMS and 40 yr terms 2.

Refi plus u/w changes
· No late pays in past 6 months · No more than 1×30 in months 7-12 · No minimum credit score requirement when payment is not increasing more than 20%. · Re-qualify borrow if PITI is increasing by more than 20% and borrower must have/meet: 620 FICO, 45% max DTI, verify income/assets/assets to close per selling guide · If note provides for more than one payment, then use lowest payment to qualify · If payment is increasing 20% or less, than normal refi guidelines apply
Bankruptcy and Foreclosure policy-Waiting and re-establishment requirement removed on BOTH the new and existing loan 4. LLPA (Loan Level Price Adjustments)
Lender follows DU findings re: income, employment, asset, fieldwork c. Lender complies with all other requirements to the guide · When DU offers a fieldwork waiver, Fannie will accept property value estimate submitted to DU as the market value, and Lender is not required to make any rep or warrant as to value, marketability, and condition. · If Lender obtains appraisal on property, then standard reps and warrants apply · Lender not responsible for Condo project eligibility rep/war except for the requirement of the property is not in a condo/coop hotel or motel.

Other requirements with respect to the original loan:
a. the loan was eligible for sale to Fannie the first time
b. original loan was in compliance to current laws
c. No know scheme or patter of fraud involving 2 mortgages and 2 perpetrators, etc
d. Condo, coop, or PUD project must meet original requirements
e. If no new appraisal obtained, Lender must rep/war that the current value is not less than the original value from the original appraisal report.(Fannie Mae is confirming if this is accurate or not. · If a new appraisal received, then Lender must rep/war just like any other loan
· Lender not responsible for any QC findings from Fannie after the fact · Lender not responsible for any max DTI (except as stated earlier)
· Not responsible for acceptable credit history (except as stated earlier)
· Not responsible for undisclosed liabilities (except as stated earlier)

Contact me or COMMENT BELOW and share with your friends and social media 

Matt Steinmetz
www.mattsteinmetz.com
twitter:steinmetzmatt

It was said that home sales had hit bottom in fall of 2010 on a national level and 2 months earlier in CA.  Meaning CA is 2 months ahead in the eyes of recovery.  I’m sure some of you agree while others are saying YA RIGHT!  With that said I learned that current sales are at the same level they were in 2002 with the difference being that prices are lower today then they were then.   So for you Realtors that have made it through the hard times I am sure I am not the first to tell you that you are working harder for less pay today than in 2002. 

The median price in CA is now around $309,000 and on average a home sits on the market 6.2 months.  My experience in Concord, CA and Contra Costa County is that the median is slightly lower than that, maybe $285,000.  In Solano county lower again at about $250,000.

It was said that there will be a housing shortage during the 2nd half of this decade.  If that is true then we should see prices hike up and we’ll all be worried there will be another bubble.

Something I found interesting was that I read today that there will be a 3.6% decline in values in 2011, but the speaker at the seminar believes there will be a 2% increase.  Spins and perspectives are always interesting, aren’t they? 

There was also a bit of discussion on the new laws and changes to existing laws pertaining to real estate, rentals, evictions and foreclosures.  One law I found interesting was that it is now a crime not just a violation to pay an unlicensed person for doing loan activity.

At any rate these are the times for consumer protection, right or wrong, it’s what the people seem to want.  I have heard many say it’s gone overboard but just like everything, it has to go overboard before it is corrected.  Just like lending, the market (the bubble), or anything else in life. 

Let me know if you have any thoughts on this by leaving a response.

Matt Steinmetz
Envoy Mortgage

Concord, CA

Follow me on Twitter @steinmetzmatt and “Like” our Facebook page Envoy Mortgage Concord, CA

Envoy Mortgage offers a wide range of products and is known for it’s ability to close fast.  With mortgage rates a record lows, we are happy to assist you with your home purchase or refinance.  First Time Buyer’s can take advantage of city or county down payment assistance programs.  Call us today!

Join the team!

Thank you,
Matt Steinmetz

Envoy Mortgage -Voted Top 25 Tech Savvy Lenders by Mortgage Technology Magazine
2151-A2 Salvio St
Concord, CA 94520

Phone 925-671-9501 x119

msteinmetz@envoymtg.com

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Mortgage rates are still great and in the low 5′s for a conforming 30 year fixed.  This assumes good credit and the ability to qualify.  It truly is a great time to buy or refinance if you can.  No one knows how long these rates will last and there is certainly a lot of information that says, by the end of the year, rates will increase.  I have covered this many times in previous posts, but in short we have an oversupply of mortgage backed securities on the secondary market and not enough investors buying them.  This means more supply and not enough demand, which makes rates go up so that investors are enticed to buy.  Aside from this when inflation goes up so will rates.  The Fed will also play a role in this as they are currently buying the mortgage back securities, but will stop by December 31st.  Even with out the inflation concern you can see how an already over supply, and losing a major purchaser of the supply can cause even more of an over supply, pushing rates higher. 

Comment or share with your social networks. 

Matt Steinmetz

Envoy Mortgage

2151-P Salvio St.
Concord, CA 94520

Phone 925-671-9501 x119
msteinmetz@envoymtg.com

 Learn When to Pay Points
Information about the $8,000 First Time Buyer Tax Credit
Information about the $10,000 New Home Tax Credit in CA
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Out of the blue, 2-3 weeks ago rates started going up. Infact they rose a full point in about a week. What was one day 5% or slightly better, became 6% or slightly worse. Will they come back down? Why did this happen?
Let's start with the former. This week rates have attempted to go lower and did so until today. Rates came back down into the low-mid 5's and then today on the news that the Treasury will auction of millions of bonds next week to raise capital, rates got worse. This takes us to the "Why?". This is now a simple case of business 101- supply and demand. All of these mortgage bonds and treasury bonds became to much supply, with not enough demand. To create demand rates have to go up so investors find the bonds more attractive. On top of this, the news is talking about several economic experts that have said the recession is ending soon and inflation will be on the rise. All of this = higher rates.