Our speaker for this last meeting in May was Luanne Boyles, Finance Manager for Howard Hanna Mortgage Services. Luanne’s expertise in residential lending brought new and important information to all of us, including those members who work in the industry and those of us who only know when to mail the payment.
This is an industry that has seen drastic changes over the last several years…and the last few weeks. Some of these changes are coming so fast that a home buyer who is approved today for a loan may not be accepted tomorrow. Interest rates are also on the move upward and can jump in a matter of hours.
Some changes have been a result of 9/11 events. Others have come from the tumultuous financial conditions we’ve seen over the last year. These changes have not so much affected the nature of the mortgage so much as they have changed the process by which they are qualified and issued.
As of January 1, 2008, a borrower is required to have a job. Explicit verification of employment, income, and any significant assets is one of the first and most important qualifiers. Good credit is also a factor.
Today, at least some money down is a must. For an FHA loan, this would be 3 ½% of the purchase price. For first-time home buyers, many states, including Ohio, have programs that will assist a new buyer in this part of the process. (Note that a VA loan does not require money down.)
An important issue to note is that there must be records of where all monies have come from that are used for a down payment. 2-3 months worth of bank statements are reviewed, along with other documentation, to create an explicit paper trail. Cash in hand, without the proper source documents, may not be usable for your required minimum down payment.
The process of appraisals has also been restructured in an effort to ensure accuracy. In Luanne’s office at Howard Hanna, appraisers are assigned on a random and rotating basis through a company agent. The identity of this assignment agent is kept anonymous within and without the company to insure the integrity of the program.
Good referrals for Luanne would include:
o Anyone financing a home purchase;
o A first-time home buyer who may be eligible for the new tax credit;
o A U. S. Veteran shopping for a home – in an effort to thank those who have defended our country, Howard Hanna is offering all qualified veterans a $300 discount on their closing costs, now through July 4th.
Thanks, Luanne, for all your valuable information!
This is an industry that has seen drastic changes over the last several years…and the last few weeks. Some of these changes are coming so fast that a home buyer who is approved today for a loan may not be accepted tomorrow. Interest rates are also on the move upward and can jump in a matter of hours.
Some changes have been a result of 9/11 events. Others have come from the tumultuous financial conditions we’ve seen over the last year. These changes have not so much affected the nature of the mortgage so much as they have changed the process by which they are qualified and issued.
As of January 1, 2008, a borrower is required to have a job. Explicit verification of employment, income, and any significant assets is one of the first and most important qualifiers. Good credit is also a factor.
Today, at least some money down is a must. For an FHA loan, this would be 3 ½% of the purchase price. For first-time home buyers, many states, including Ohio, have programs that will assist a new buyer in this part of the process. (Note that a VA loan does not require money down.)
An important issue to note is that there must be records of where all monies have come from that are used for a down payment. 2-3 months worth of bank statements are reviewed, along with other documentation, to create an explicit paper trail. Cash in hand, without the proper source documents, may not be usable for your required minimum down payment.
The process of appraisals has also been restructured in an effort to ensure accuracy. In Luanne’s office at Howard Hanna, appraisers are assigned on a random and rotating basis through a company agent. The identity of this assignment agent is kept anonymous within and without the company to insure the integrity of the program.
Good referrals for Luanne would include:
o Anyone financing a home purchase;
o A first-time home buyer who may be eligible for the new tax credit;
o A U. S. Veteran shopping for a home – in an effort to thank those who have defended our country, Howard Hanna is offering all qualified veterans a $300 discount on their closing costs, now through July 4th.
Thanks, Luanne, for all your valuable information!
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