Mortgage Industry

Notes and Comments from Edwin Gerace of Russell & Jeffcoat Realtors and Chris Smith of Wells Fargo Mortgage.
What are some of the largest changes in the Mortgage Industry that effect buyers?
In the past few years, the biggest concern that a prospective home purchaser should consider is the restrictions associated with financing. Just two years ago, a purchaser could expect that they may be able to buy a home with no down payment, with marginal credit, and without documenting her income. Those days are long gone now. Purchasers of home now can expect that lenders now expect a down payment (as little as 3.5%). In addition, credit is more important- a purchaser can expect not to get very favorable financing terms unless her credit is of the highest quality. All aspects of a mortgage loan application will be scrutinized greatly now- documenting all income and assets thoroughly.

Are interest rates going to stay steady over next several months or do you see them to climb?
As to interest rates, in the past seven months, we have seen a big drop in rates, though in the past few weeks, we've seen a bit of a tick upward. Though it's impossible to accurately forecast future interest rates, I expect rates to continue to be below 5.5% for the next few months.

When is a good time to refinance your home?
When it comes to refinancing a home loan, there are innumerable rules of thumb. Some say that refinancing is a good idea if rates are at least 1% below the existing loan rate. Others say this gap needs to be at least 2%. I don't like any of the rules of thumb. Before even considering the rate differences, I would suggest that a homeowner first ask herself, "How long do I expect to own this home?" If a homeowner can tell me exactly how long she will own the home, I can say with a great amount of confidence whether or not refinancing makes sense.

Has the loan approval process over last 90 to 120 days on loans changed?
In the previous year, the homeloan application process has changed fairly dramatically. In most all instances, lenders are now scrutinizing documents at a very high degree. A prospective homebuyer can expect that her lender of choice will be asking many many questions after application, once paystubs, W-2 forms, tax returns, and bank statements are provided to the lender.

Are there any True 100% financing programs out there?
As far as I know, apart from USDA RURAL HOUSING, 100% financing homeloan programs are extinct animals.

What are the top 2-4 factors that effect buyers buying/ credit score numbers?
As to cxredit scores, there are thousands of opinions as to what constitutes a great credit score. For most people who live in a world called "real," it's just about impossible to do all of the things necessary to have a "perfect" credit score. Generally speaking though, as to working on improving credit scores, a consumer should 1) pay her bills on time, and 2) if you aren't using some of your credit cards, those accounts should be closed.

Chris Smith is a loan officer with Wells Fargo Mortgages with over 5 years of experience in the Columbia market. He has helped buyers find the right mortgage that fits thier needs.
Give him a call or email him today if you need any information about getting a mortgage loan. He can help with purchases or refinances in 48 of the 50 states. Kip Murphy , Loan Officer, Wells Fargo Mortgage, Cell : 803-361-4263, (803) 951-0713 Tel, Christopher.M.Smith2@wellsfargo.com, Visit me on the web at www.wfhm.com/christopher-smith

Edwin Gerace is a realtor with Russell and Jeffcoat Realtors with over 10 years of expierence in the Columbia market. He has help buyers,sellers and builders over the years reach thier real estate desires. Feel free to call or email him about real estate. Visit him on othe web at http://www.edwingerace.com/ or visit his blog at http://www.edwingeracesrealestateblog.com/ . Contact him at 803-609-7653 cause with Ed You Win.