Bellingham WA Home Loan Rates and Tips

With loan rates as low as they are, you may be thinking about refinancing.  If you have a second mortgage, your primary loan may still be refinanced, but the process is a bit more complicated because you must get permission from your home equity lender (unless you plan to pay them off as part of the refinance).  The lender doing the refinance will need to submit a request for subordination to the second mortgage holder.  This allows the new mortgage to move into the first position being vacated by the existing first mortgage.  The second position lender (your home equity lender) will usually require a copy of your new loan application, credit report and a copy of the appraisal, together with a fee.  If they don’t agree, the only way you will be able to refinance is by paying off both the existing loans.

Home loan rates as of Wednesday, March 10 are in the following table.  Rates for 30 year fixed rate conventional, FHA & VA loans dropped just a bit, while the 15 year conventional rate held steady and the Jumbo loan rate increased a bit.  For more details, or a custom quote, contact SidneyStonecypher at People’s Bank, 360-676-4597 or sidney.stonecypher@peoplesbank-wa.com.  Remember that many variables come into play in determining the rate a lender will give a borrower.  If you are getting a rate quote from a lender who does not have all your information, that rate may not be real.  What with the low rates and the tax credits, it is a great time to buy a house!

 If you have other questions about financing, don’t hesitate to contact us and we will get you the answer.  If you are wondering, other people probably are as well.  For general financing and market information, check out our website.

Bellingham WA Home Loan Rates and Tips

Having a home loan denied can be embarrassing, frustrating and costly if you haven’t done your homework before you write that purchase agreement.  When talking with a loan officer, make sure you give them all your information…and make sure it is accurate.  Here are two things that can get your loan denied:

• You have recently gone from salary to commission.  Lenders typically do not count commission income unless that has been your income source for at least two years.  If this has recently changed, you may need to wait unless your spouse’s income is sufficient for you to qualify.
• Incorrect tax returns.  Lenders can no longer rely on your copies of tax returns as proof of income - they must order transcripts from the IRS to confirm their accuracy.  Common differences include exaggerated income, unreimbursed expenses and second home expenses.  If you have just filed your return, it can take up to five weeks to get a copy of the transcript, so if you are thinking of buying, get your tax return in early. 

Home loan rates as of Wednesday, February 17 are in the following table.  For more details, or a custom quote, contact SidneyStonecypher at People’s Bank, 360-676-4597 or sidney.stonecypher@peoplesbank-wa.com.  Remember that many variables come into play in determining the rate a lender will give a borrower.  If you are getting a rate quote from a lender who does not have all your information, that rate may not be real.  What with the low rates and the tax credits, it is a great time to buy a house!

If you have other questions about financing, don’t hesitate to contact us and we will get you the answer.  If you are wondering, other people probably are as well.  For general financing and market information, check out our website.

Bellingham WA Weekly Financing Tip & Rates

Getting a real estate loan is about a lot more than the amount of your downpayment and your current income.  Two factors that can get your loan denied are

•  Excessive debt.  Lenders measure your debt load by the DTI – debt to income ratio – which is the amount of your monthly payments divided by your gross monthly income.  The typically allowable level has dropped from 55% to 45%.  Pay off the credit cards and other small debts before you apply for a home loan.  It will also improve your credit score, which will lower your interest rate!
• Declining Income.  This is particularly a problem for people who are self employed, because lenders are far more cautious with those borrowers.  If your tax returns show less income for the current year than for the prior one, the lender is likely to use the lower number, and in some cases discount it further if they believe the trend is down in your industry.   

 Home loan rates as of Wednesday, February 10 are in the following table.  For more details, or a custom quote, contact SidneyStonecypher at People’s Bank, 360-676-4597 or sidney.stonecypher@peoplesbank-wa.com.  Remember that many variables come into play in determining the rate a lender will give a borrower.  If you are getting a rate quote from a lender who does not have all your information, that rate may not be real.

If you have other questons about financing, don’t hesitate to contact us and we will get you the answer.  If you are wondering, other people probably are as well.  For general financing and market information, check out our website.

Bellingham WA Weekly Financing Tip and Rates

There are red flags that may get your loan application turned down.  Over the next few weeks, we will be highlighting some of the most common.  This week, let’s look at repairs and appraisals.

Repairs:  Cracked windows, broken appliances, visible water damage or a leaking, mossy roof are examples of things that could cause your lender to turn down the property as collateral.  Failure of the buyer & seller to provide the lender with copies of any agreements regarding repairs may be considered bank fraud, and a felony under the law.

Appraisal:  While in the real-estate “bubble” appraisers were accused of collaborating with the lenders to make their number meet the purchase price.  New rules make the appraisal process very different and the communication between a lender and the appraiser is very limited.  Some lenders are also checking the appraiser’s number using a desk-top value analysis system and refusing to allow the full value of the appraisal. 

Home loan rates as of Wednesday, February 3rd are in the following table.  For more details, or a custom quote, contact Sidney Stonecypher at People’s Bank, 360-676-4597 or sidney.stonecypher@peoplesbank-wa.com.

If you have other questions about financing, don’t hesitate to contact us and we will get you the answer.  If you are wondering, other people probably are as well. For general financing and market information, check out our website.