Monday, September 20, 2010


FANNIE MAE LOAN QUALITY INITIATIVE TO REPULL YOUR CREDIT BEFORE CLOSING - Another great article by Ginger Wilcox @ Blog by the Bay:
 
"Fannie Mae’s new loan quality initiative will make it it harder for Marin home buyers and refinancing homeowners to close on a mortgage.

Beginning June 1, 2010, with all new applications, Fannie Mae wants lenders to verify that borrowers have not taken on new debt during the underwriting phase of the mortgage. If new debts are found, the mortgage is subject to a re-underwrite and a possible turn down.

Fannie Mae hopes to reduce the number of loans that go bad because of new, non-disclosed debt. Lenders have the freedom to verify in whatever manner they wish, but in most cases, the verification process will amount to a credit re-pull made just prior to closing.

The underwriters will be looking for 3 things in particular — even after your loan is approved.
  1. Your updated credit report will show your current credit card bills and minimum monthly payments.  Those numbers will replace your original numbers made at the time of application.  If the debts exceed a certain threshold, your loan will be denied.
  2. Underwriters will be looking at your updated credit score. If your FICO has dropped below minimum lending standards, your loan will be denied or you may be subject to a new loan-level pricing adjustment. Loan level pricing adjustments are mandatory loan fees based on your credit score.
  3. Underwriters will be looking at your credit report’s Credit Inquiry section. The goal is to see if you’ve been applying for credit elsewhere. Underwriters can use this information at their discretion.
Fannie Mae is trying to improve its loan pools with the Loan Quality Initiative. Unfortunately, it’ll mean more loan denials for mortgage applicants.

If is important for home buyers to take extra care of your credit between the time of application and the time of closing. Don’t buy new cars, don’t buy new appliances, and — most definitely — don’t open new credit cards.  Be extra safe with your credit because a mortgage application that’s supposedly cleared-to-close can be revoked at the eleventh hour.

When in doubt, talk to your loan officer about what may or may not trigger the Loan Quality Initiative."


Friday, September 10, 2010

"Finding Your Dream Home is Just the Beginning"

A while back I happened upon Ginger Wilcox's blog called Blog by the Bay.  Ginger & her team of real estate professionals share some great information & insight that transcends from the west coast to life here in Hampton Roads.  I will, from time to time, post from Gina's blog for all to enjoy!

August 6th, 2010 By Ginger Wilcox

"Guess what? If you’re looking for your dream home, you might end up finding it yourself. Odd for a REALTOR® to say, right? When I meet with home buyers, I always tell them that I may not find them their dream house. It is quite possible they may find it online or because their friend knows someone who is selling a house before I even know they are ready to buy. I have talked to a number of home buyers recently who felt the agent didn’t do their job because the buyer found the house, not the agent.
Buying a home is very different than it was ten years ago. Consumers are armed with a tremendous amount of data easily found online. Your real estate agent’s job isn’t just to help you find your home, their job is to help you buy your home. Finding the perfect dream home is really only a small part of a very complicated transaction. Zillow, Trulia, Realtor.com or even our very own blogbythebay.com- there are literally thousands of places for home buyers to find homes. A consumer can literally be inundated with data. A good agent can help you sort through all of that data.
For some home buyers, finding that perfect dream home is much more complicated than others. I had one client who wanted space for a tennis court in an area without a lot of land. Finding their perfect property took a tremendous amount of effort and time, and required extensive research and diligence on my part. There are many homes that aren’t on the multiple listing service or on one of the 1001 home listing websites that a good agent will know about. We sell a lot of off market homes to buyers that they could never have found online, but other times clients call us and say, “Hey, we found the perfect home. We would like to buy it.”  This is often when the difficult part of our job begins.
So how do you find an agent who can not only help you find your house, but also help you buy it- aka close escrow?  There are a number of things you should look for:
  • A skilled negotiator:  The entire contract process involves a series of negotiations, even after the contract is ratified and you are in escrow. Your neighbor’s cousin who is an agent may be sweet, but can they save you money, time and aggravation by negotiating successfully for you?  This doesn’t mean you hire someone who negotiates just to hear themselves negotiate which can lead to a failed purchase- a contract falling out of escrow.  Negotiating successfully involves a series of give and take to reach the desired end result- a home purchase within the budget and time requirements.
  • An educated real estate professional:  Have they taken classes beyond the pitifully small amount required to get a real estate license?  I took all of my licensing courses online.  Quite honestly, the process was a joke.  When I finished my licensing, my real education began.  I mentored with an experienced agent and took extensive course work to make sure I had the skills needed to do my job.  Make sure your agent gets ongoing education- this business isn’t standing still.  Ask them how they stay up to date on current rules and trends.
  • A business professional: She should treat you, service providers, and other agents with professionalism and respect.  A good agent will not bad mouth her competition, nor her other clients, even if it is deserved.
  • An organizer: Your agent is essentially your project manager to get your transaction closed.  Nobody wants a sloppy project manager.  A missed deadline in a contract could mean the loss of not only the transaction, but possibly an earnest money deposit for you.  An average earnest money deposit in Marin County is about $30,000.  I wouldn’t call that chump change.
  • Trustworthy: Are they looking out for your best interests?  We talk our clients out of buying homes we think are a bad investment all the time.  Make sure your agent will do the same.
  • Mobile: If your agent can’t assist you while out in the field, they can’t work for you the majority of the time.  Successful agents are not in their offices.  Find someone who is mobile and can assist you on the go.
  • Tech Savvy: If your agent is mobile, they are probably not a technological neanderthal.  This is a good test.  Your agent doesn’t have to be a tech guru but they need to be up to date on the latest tech tools to not only help you find your house, but manage the transaction process along the way.
  • Local: We see many failed transactions with out of area agents.  The majority of out of area agents don’t know the intricacies of the individual county, city and even subdivision rules that can impact a home purchase and later on, a home’s resale value.  Hire a local agent who knows not only the rules and regulations, but also has a pulse on the local real estate market and knows the local agents who will be influencing the transaction process.
  • Good with the numbers: Buying a home can very emotional, but it is also a major financial purchase.  Your agent should be providing you comparable sales and comprehensive real estate market stats, charts & reports to help guide your decision making process, and should be giving you informed advice about the value of the home.
Your agent may not be the person who finds you the dream home, but a great agent will help make the complicated home buying process successful, no matter who found the property."

Tuesday, September 7, 2010

Another great Labor Day weekend in Va Beach, next.... Neptune Fest!

We were most fortunate that Hurricane Earl skirted our coast rendering huge waves and a bit of wind and rain.  But Earl cleared out as the weekend settled in and left us with clear, sunny skies. We did a bit of yard work & I held an open house (the labor part).  We spent some time visiting with some great friends and, of course, we went to the beach.   Now as you know, most folks consider Labor Day weekend as the "end of summer" but, fortunately, not here in Virginia Beach.  Ahh, September...the kids have headed back to school & we're all getting ready to enjoy the time where the tourists head home and the locals come out to play.  Neptune Festival is our next favorite event which starts mid-September and runs about two weeks (yes, I actually had to plan my wedding around it).  It's everything Neptune around here! 


There will be wine tasting, an 8K, 5K & 1 mile run, sandcastle competition (It's pretty awesome), a three-day arts-n-craft event on the boardwalk, bands and of course, the Grand Parade!


We hope to see you there!  
In the meantime, remember to check out my open house posts or visit me at www.hollyfisherhomes.com!  Tell a friend, I'll help them find their dream home in Tidewater!