As we head into the fourth quarter of 2021, the peak home buying season is wrapping up, and most of the bidding wars have subsided. No, that doesn’t mean you can take the next three months off, unless you don’t need a paycheck.

But it might signal the green light for your clients who were waiting to buy until demand decreased, prices became a little more reasonable, or their credit score improved. Bidding wars and the frustration and roller coaster of emotions that come with them aren’t for every house hunter. Continue reading

Paying rent on time is a good way to make sure you don’t get evicted. Now, thanks to a new Fannie Mae policy change, that positive payment history could significantly boost your prospective clients’ chances of being approved for a home mortgage loan. 

As of Sept. 18, Fannie Mae is adding a new feature in its automated underwriting system that considers mortgage loan applicants’ rent payment history – with their permission – during the credit review process. That means that paying rent on time will officially count for something as your buyers look to transition from renter to homeowner. Continue reading

As if a housing shortage and historically low interest rates weren’t enough to spark some of your clients to consider refinancing instead of buying, the Federal Housing Finance Agency (FHFA) just put another log on the fire.

This week, Fannie Mae and Freddie Mac have agreed to eliminate the “Adverse Market Refinance Fee” for all refinanced mortgages, effective Aug. 1. The refinancing fee was implemented in December 2020 to help pay for some of the federal pandemic-related mortgage relief.   Continue reading

As you’ve probably noticed, it’s been quite the home buying season so far in 2021!

If your experience has been anything like many real estate agents around the country, you’ve been busy trying to keep your buyers thinking positively during such competitive times while looking for more homeowners willing to sell in order to beef up the home supply in your area.

In this hectic seller’s market of 2021, maybe you’ve seen some crazy things like homes selling for tens of thousands above their asking price. Or homes are drawing dozens of serious bidders within an hour of being listed. We’ve even heard of buyers throwing in crypto-currency or literally offering bags of cash to beat out competitors. Continue reading

If you’re a prospective homebuyer/homeowner seeking mortgage financing using ‘conventional loans’, you could end up paying more come April 2014.

‘Conventional loans’ = Fannie Mae and Freddie Mac, aka Government-sponsored enterprise (GSE) loans.

Earlier this month, the Federal Housing Finance Agency ordered Fannie Mae and Freddie Mac to increase charges called “guarantee fees,” or g-fees, that are embedded in the cost of home loans to protect investors from losses. Theoretically, raising these fees would bring private capital back into the mortgage market and better reflect a borrower’s credit risk.

For loan officers, this will likely make it more difficult to determine whether a borrower is a better candidate for a GSE loan or a loan through the Federal Housing Administration (FHA). But for borrowers, the potential impact is much more significant: adding thousands of dollars to closing costs.

Starting March 2014, the Loan-Level Price Adjustment fees, or LLPA fees, of GSE loans may be raised for borrowers with credit scores above 660 and a down payment of less than 30%. Borrowers with scores between 680 and 760 who are making a 5% to 10% down payment could see an interest rate that is 3/8 of a percent higher.

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