Navigating The Current Purchase World
June 14, 2012No CommentsBuying A Home, Real Estate Mortgage, Videos Buying A Home, Conventional Mortgage, Fannie Mae, Home Appraisal, Homeowners Insurance, Homeownership, Loan Officer, Michigan Mortgage Broker, Mortgage, Mortgage Approval, Mortgage Closing Costs, Mortgage Down Payment, Mortgage Insurance, Purchase, Real Estate Negotiation, Realtors
We have had numerous conversations with Realtors on the last month where the response has been “I didn’t know that” or “that’s not how it used to be”…
1. Effects of Homeowner’s Insurance On Purchase Loans.
♦ Insurance Coverage must be in place PRIOR to receiving a “clear to close”.
♦ Cannot Wait Until Closing to show declaration of insurance.
♦ HOI Agents will wait to the last minute to avoid having to redo the policy.
♦ Borrowers can still pay for the 1st year premium at closing.
2. External-Only Appraisal For Conventional Loans with less than 20% down.
♦ We are seeing a lot of these happening now!
♦ PMI companies underwrite the files with less than 20% down based on the Fannie Mae requirements for the appraisal type.
♦ CAUTION- Keep this in mind if you plan to negotiate after the appraisal comes out.
3. Loans under $100,000 ↔ Loan Officer Attention Span
♦ Similar to your commissions, small loans do not pay as much as larger loans and thus may not get top priority or the loan officer’s attention.
♦ Given 85% of all mortgage applications are refinances right now, loan officers may not give borrowers the attention they need to make sure they truly qualify for the loan, more specific all their cash to close.
We are here to help so feel free to ask questions below and keep us in mind.
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