Instead, after some abysmal unemployment rates, I think jobs will be what drive people to buy homes in 2011.  Many economic forecasters predict the job market in Austin will continue to improve this year, some say we’ll add as many as 20,000 jobs this year and even more in 2012.  With people getting back to work, or finding better jobs, they’ll have money to spend and invest in the real estate market which I think will affect what and when people buy.

Of course, this is educated guessing so, come back often to see what’s going on in the mortgage market and at United Lending as the year progresses.

Still lots changes continue in my industry, minimum credit scores for most investors on FHA loans are now 640 – but, YTD at United Lending 95% of our FHA loans had scores over 640 so that shouldn’t be too big of an impact.  Appraisal rule changes are still settling in, and the Dodd/Frank financial reform bill is just around the corner taking effect 4/1/11.  That will have one of the biggest impacts in the way we do things of all the changes.  Most importantly (to us anyway) it regulates how a loan originator is compensated.  Right now a loan officer is generally paid more the higher the interest rate (sometimes that extra money is used to pay for closing costs or “hits” for such things as a lower credit score or an investment property, sometimes the originator keeps it as higher commission), but now they’ll have to be paid the same regardless of the terms of the loan.  This is to discourage the loan officer from “steering” a client to a higher rate.  In the past free market and competition took care of assuring a borrower got the best deal.  We’ll see how it works with the government stepping in.  Still lots of questions…

On this weekend’s Real Estate Radio show we’ll have a lot of fun.  We’ll talk about all this and more.  Calling in from Canada we’ll also have my old buddy, attorney (or Barrister & Solicitor as they’re known in the north ) and returning guest Cuzzin’ Tim from Canada to talk about his clients new book entitled ‘Twas the Night Before Christmas: 21^st Century Edition’.  It’s a satire about the over-commercialization of Christmas, in which the North Pole toy shop / whole Santa thing is taken over by a multi-national corporation.  The text is a re-jigged wording of the famous ‘Night Before Christmas’ poem, with fake emails, photos, letters, newspaper articles, etc. inserted throughout in the book.

It’s kinda corny (OK, more than kinda), but at $9.99 it would make a good adult stocking-stuffer or gag gift.  You can pick up a copy here. http://tinyurl.com/2a5mfdw

So please let me know if I can help with a home purchase or a refinance and tune in this Saturday at noon on 590 KLBJ AM for what is sure to be a great show!

November 13th Chad Bowman with The VA Team at United Lending will be David McMillan’s guest on Real Estate Radio on KLBJ 590 AM at noon.  Chad is our in-house VA Loan Specialist and he’ll be answering questions about the VA Home Loan Program as well as the Texas Veteran Housing Assistance Program.  VA is still 100% with no down payment and no mortgage insurance and the Texas Vet rates are the lowest they have ever been.  Chad has specialized in VA loans since 2004 and has dedicated his mortgage career to supporting Texas veterans with the home loan benefits his fellow veterans have rightfully earned.  Call with your questions this Saturday!

thevateam.com

chad@thevateam.com

It takes more than a roof over your head to make your dreams come true. Foundation Communities helps families end the cycle of poverty through on-site programs that increase literacy and financial stability. Their Community Learning Centers, located right in the center of the community, are open daytime and evenings providing free services like a computer lab, pre-school class, after-school programs, teen clubs and ESL classes.

For the past 10 years, Foundation Communities have invested in green building initiatives to save on operating costs, reduce residents’ utility bills and because it makes Austin a better place to raise our kids — and grand kids. Sometimes green building is a roof covered with solar panels, and sometimes it’s as simple as replacing carpet with ceramic tile.

Foundation Communities is a national leader in the asset-building movement, offering low-income families and individuals a step up into the economic mainstream through financial education and homebuyer courses, matched savings accounts,financial coaching, finding money for education,self-employed/small business support and free income tax preparation.

If you would like to volunteer, donate, or seek assistance with Foundation Communities, please complete the contact form below.

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Today on Real Estate Radio, Brian McClure of Amit Energy joins David and in house real estate expert Lance Haverda, to share with us how we can earn energy! Tune in and complete the contact form below to learn more.

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On an average $175K loan amount that’s going to mean about $31 dollars more a month!  Heck, that a couple of movie tickets, popcorn, drinks and some candy!  Too bad.  But FHA is an excellent source for financing and we certainly don’t want to see them go under or need trillions in governmental bail out.

FHA has many benefits…higher debt to income thresholds, minimum down payment (3.5%) and you can actually get in for a total of 3.5%, gift funds from family members are acceptable, co-signers work great if the occupying borrower is a student or we can’t count their income due to a new self-employed venture or something like that…so lots of advantages.

In other news rates astonishingly continue to drop…absolutely the lowest I’ve seen in my 21 year career.  You have heard it before but it may be a great time to refinance…we are actually refinancing 15 year loans that at 5%…down into the three’s!  or you may consider refinancing your 30 year into a 15 year…keeping the payment the same but knocking years off your mortgage.  Drop me a line sometime for your free no obligation analysis.

Have a great weekend!!

I know you hear it all the time. It’s in the news so much that you probably get sick of it, but it really is amazing what rates are doing and what they can do to your payment. So take a few minutes, give us a call, go to our website, check it out and see what’s happening with interest rates in your situation.

The low rates have a lot to do with what’s going on around the world. The stuff going on in Greece, Europe, and China has even slowed down a bit so it’s tough to say how long rates will be this low. We’re locking everybody even though we’ve been on this three month good run. I just know it’s going to turn around any day now and shoot back up. You will see them over 5% in the blink of an eye. Now is the time to act.…and be sure to listen to Real Estate Radio on KLBJ 590 a.m. and live on their website at www.klbj590.com for live streaming broadcast. Y’all be sweet! dmc

David is the host of Real Estate Radio Updates airing on Austin’s #1 radio station KLBJ 590 AM. David teams up with Austin’s top agents to bring you information related to current market trends, neighborhoods, builders, interest rates, investment opportunities, prequalification, financing, and other topics.

]]> http://themcmillanteam.com/2010/06/17/real-estate-radio-2/feed/ 0 http://themcmillanteam.com/2010/06/17/hello-world/ http://themcmillanteam.com/2010/06/17/hello-world/#comments Thu, 17 Jun 2010 12:22:42 +0000 David McMillan http://mcmillan.lenderama.com/2010/06/17/hello-world/ Welcome to Lenderama. This is your first post. Edit or delete it, then start blogging!

New regulation, updated disclosures, appraisal guidelines, mortgage rate pricing premiums, credit score, secondary approval layering, rescission deadlines, property type, HOA insurance requirements, title and property flip rules are just a few of the daily changes that can have a serious impact on a borrower’s home loan financing.

With today’s volatile lending environment, it’s obviously important for home buyers to get a full loan approval which clearly defines all contingencies that pertain to each unique home buyer’s scenario prior to spending any time looking at new homes with an agent.

Either way, we’ve listed a few of the top things your agent should keep in mind while showing you new properties:

Caution – Agents Beware:

Property Type –

High-Rise, Condo, Town House, Single Family Residence, Dome Home or Shoe House… all have specific lending guidelines that can influence down payment, credit score and mortgage insurance requirements.

Residence Type –

Need to sell one home before moving into another? Is a property considered a second home if it’s in the same city?  What if I’m buying a home for my children to live in, it is still considered an investment property?

These are just a few of several possible residence related questions that should be addressed by your agent and loan officer at the initial loan application.

Rates / Locks –

Mortgage Rates are typically locked for a 30 day period, and one of the only ways to get a new rate is to switch mortgage lenders.  Rates also have certain adjustments for property / residence type, credit score and down payment which could have a big impact on monthly payments and therefore approvals.

A 1% increase in rate could literally mean the difference between an approval or denial.

Headline News / Employment –

Underwriters watch the news as well.  Borrowers who work in a volatile industry during hard economic times may have to jump through a few extra hoops to prove that their employment and income is secure.

Job changes, periods of unemployment or property location in relation to the subject property are other things to consider that may cause a speed bump in the approval process.

Title / Property Flip –

A Flip is considered a property that has been purchased by an investor and quickly sold to a new buyer within a 30-90 day period.  Generally, an investor will do a little rehab work, fresh paint, landscaping…. and try to re-sell the property for a significant profit margin.

While it seems like a perfectly fair transaction, many lenders have strict guidelines in place that prevent borrowers from obtaining financing on properties that have a previous owner with less than 90 days of documented ownership.

These rules change frequently, and are specific to particular property types, so make sure your agent is aware of all the boundaries associated with your approval letter.

Homeowner’s Association Insurance –

Some lenders require Condos and Town House communities to have sufficient insurance and reserves coverage pertaining to specific ratios on units that are owner occupied vs rented.

It may also take a few weeks and cost up to $300 to receive an HOA Certification, so make sure your Due-Diligence period is set accordingly in the purchase contract.

Appraisal Ordering Procedures –

Appraisal ordering guidelines are changing quite frequently as regulators implement many new consumer protection laws created to prevent future foreclosure epidemics.

Unfortunately, some of the new appraisal regulations have proven to slow the home buying process down, as well as confuse lenders about the true estimate of neighborhood values.

VA, FHA and Conventional loan programs all have separate appraisal ordering policies, so make sure your agent is aware of which loan you’re approved for so that they document any anticipated delays in the purchase contract.

For example, if an appraisal takes three weeks and the average time for an approval is two weeks, then it probably isn’t smart to write a purchase contract with a four week close of escrow.

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Related Articles – Home Buying Process:

• Home Buying Process
• First-Time Home Buyer Credit Checklist
• Assembling Your Home Buying Team – Knowing The Players
• Important Factors To Consider When Getting Financing On A Foreclosure, Short Sale or New Construction
• Where Does My Earnest Money Go?
• HOA Hurdles to be Aware of When Looking at New Properties
• What You Need To Know About The Home Inspection Process