Category Archives: Fairway Mortgage

What Brexit Means for American Mortgage Rates

dreamstime_s_54561593Britain’s vote to leave the European Union on Friday shocked many and left Americans wondering what effect the action would have on our economy. International concerns play a large role in the mortgage-backed security market. As a general rule of thumb, when there is risk or danger in the financial markets, investors and speculators tend to flee to ‘safe haven’ assets, such as U.S. treasury bonds and U.S. mortgage-backed securities. This typically results in lower mortgage rates and mortgage-bond purchasing leads to higher prices and lower bond yields.

For Americans who have been waiting for one reason or another to refinance, now is the time to act. Rates are back at historic lows and the Federal Reserve is likely not going to be raising short-term rates again for a while. Investors are putting their funds toward the safest assets, such as U.S. Treasuries, mortgage -backed securities, and gold. According to financial analysts, this won’t last long. Homeowners are urged to act quickly, and lock in rates as soon as possible.

The Brexit vote and ensuing turmoil in Europe also strengthened the U.S. dollar overseas. As a result, imported goods, such as German automobiles or appliances, could also see some price improvements over time with a stronger U.S. dollar, along with a decrease in the cost of traveling to Europe.

It is certainly worth a conversation this week about where your mortgage rate is and whether or not the team at Fairway can help you save money each month. Call our partner at Fairway, Jarred Alexandrov, to discuss where rates are and how he can assist you with a quick refinance for your home. If you have been considering moving to a new home, he can talk about your options as well, as there may not be a better time to buy in 2016 than in the coming weeks and months!

JarredA
Jarred Alexandrov
Office: 508.735.0078
Cell: 508.735.0078
Email: jarreda@fairwaymc.com

 
Source: Fairway Independent Mortgage

 

Mortgage Pre-Approval vs. Pre-Qualification

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When purchasing a house, your real estate agent may suggest getting “pre-approved”or “pre-qualified” before you buy. While these mortgage terms sound similar, they are in fact very different. For a buyer, a pre-approval letter is going to be more beneficial to you in the home buying process than a pre-qualification letter, as it shows a seller you are more serious about your offer.

A mortgage pre-qualification is an initial assessment by a lender of a borrower’s ability to qualify for a mortgage loan. When you are pre-qualified, your credit report may or may not be pulled, and information about your employment, income, assets and liabilities are given by you to the lender. However, none of this information is verified by the lender, which makes it less accurate than a pre-approval (see below). In the case of a pre-qualification, the lender is reliant on the buyer to provide an accurate estimate of these items.

A pre-approval is determined after a more in-depth analysis of the borrower’s income, expenses, assets, liabilities and credit score by the lender. Generally, documentation is provided by the borrower for all of the above items so that the lender can verify all of the information that was provided verbally at the pre-qualification stage. Remember, a pre-approval is not a commitment to lend, as only an underwriter can provide that. However, a pre-approval letter lets the seller know that the information you have provided to the lender has been verified, and it appears that the borrower will be approved for the loan. In the case of a pre-approval, the seller will be more likely to take your offer seriously.

Once you become serious about purchasing a home, you should consider being pre-approved for a mortgage so that you know how much home you can afford and we can discuss your options. It is important to remember that neither a pre-approval letter nor a pre-qualification letter guarantees that you will be approved for your mortgage, but by applying for pre-approval you are one step closer.

Nancy A portrait
Contributed by Nancy Abbott of Fairway Mortgage
Learn more and contact Nancy Here
About Fairway Mortgage

Unlimited Agents Join the Fight to End Homelessness

Press release from our mortgage partner, Fairway Independent Mortgage Corporation, about the ICycle 2015 Ride. Unlimited Sotheby’s International Realty Agents, Celdra Allen-Harding and Phil Smith participated in this years event.

Celdra Allen-Harding and Phil Smith

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Fairway Independent Mortgage Team Rides in ICycle 2015

Team Members Join Fight to End Homelessness

Boston, MA – The Fairway Independent Mortgage Corporation team braved the cold and snow on Thursday to participate in ICycle 2015, an hour-long outdoor spin class held at International Place in Boston. The annual event supports HomeStart, a Boston-based non-profit that helps homeless individuals and families find and stay in permanent housing, and is designed to give participants a small taste of the frigid temperatures and exhaustion that members of the homeless population face daily throughout the winter.

This was Fairway’s first time participating in the event. Also riding on the Fairway team were participants from G&N Insurance, Genworth, ONE2TREE and Unlimited Sotheby’s International Realty.

Between the closing of the Long Island Shelter and the brutal cold and snow, the riders knew that this winter has been even more challenging than most for Boston’s homeless population and were inspired to do their part to help. Said Boston branch manager David Lazowski “As a loan officer I get to see over and over again how a home can change someone’s life. That’s why I am committed to helping as many people as possible gain permanent housing.”

The Fairway team raised more than $15,600, enough to move 15 people out of a shelter and into permanent housing.

“We are very grateful for Fairway’s participation in this year’s ICycle,” said Linda Wood-Boyle, executive director of HomeStart. “Fairway will help us raise awareness and vital financial support toward combatting homelessness. While we want people to have fun at ICycle, we also hope they understand the important message behind it—that one or two hours in the cold cannot compare to living without a home. The ICycle event is just one way we can simulate of fraction of the many challenges

those struggling with homelessness must face.”

About Fairway Independent Mortgage Corporation:
Founded in 1996 by Steve Jacobson, and named by a childhood best friend, colleague and forever member of the Fairway family, Randy Cross, Fairway Independent Mortgage Corporation is a mortgage banker headquartered in Madison, Wisconsin and Plano, TX. The Company has over 260 locations and over 2,000 employees nationwide. At Fairway, customer service is a way of life. Fairway is dedicated to finding the best rates for customers and also offers some of the fastest turn times in the industry. The goal is to act as a trusted advisor, providing highly personalized service and helping through every step of the loan process. It’s all designed to exceed expectations, guarantee satisfaction, and earn trust. Fairway Independent Mortgage Corporation provides all necessary support in the areas of personnel, accounting and compliance. For more information, please visit www.FairwayIndependentMC.com.

About HomeStart:
HomeStart is a non-profit organization whose mission is to end and prevent homelessness in Greater Boston by assisting individuals in obtaining permanent housing and settling into the community, and by developing strategies to address systemic barriers to housing placement. For more information, visit www.homestart.org.

Download the press release HERE

Fairway team - ICycle 2015

Mortgage Update: Why do mortgage companies care about your large bank deposits?

Update by Jarred Alexandrov : Fairway Independent Mortgage Corporation

If you’re like most people applying for a mortgage, or getting pre-approved for a mortgage you will be asked by your mortgage company “to source your large bank deposits.

(A large deposit is generally considered any non payroll deposit over $1000. This includes simple transfers from checking/savings accounts.)

Why Do Mortgage Companies Care About Your Large Bank Deposits?

  1. Mortgage companies are required by law (USA Patriot Act) to source deposits in order to combat money laundering. If we do not source the deposit we could be held liable if money laundering is determined to have taken place.
  2. Mortgage companies want to determine that you have the funds available to pay for your mortgage. More specifically they need to know that you are not relying upon one-time sources of funds such as gifts, gambling winnings, etc to qualify.

If you have large deposits in your bank accounts, you will need to “source” those deposits by providing evidence of the check and/or origin of the funds.

Of course, you can also avoid having to provide evidence for sourcing large deposits by not depositing or transferring funds until your mortgage is finalized.**

**If you are receiving gift funds for a purchase of real estate, get those funds transferred or deposited at least 2 months before you apply for a mortgage so that the “large deposit” won’t be reflected in your most recent bank statements.**

When you are asked to “source a large deposit” now you know why!

Jarred Alexandrov
Fairway Independent Mortgage Corp. Marketing Director and Loan Coordinator
617-456-1700 ext.115
jarreda@fairwaymc.com

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Don’t forget to come in, call or visit us at PrudentialUnlimited.com for all your Real Estate needs in Boston, Brookline, Jamaica Plain and surrounding areas.

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Mortgage Update: FHA Changes Restrictions on Condo Lending

Update by Jarred Alexandrov : Fairway Independent Mortgage Corporation

You may or may not already know that the Federal Housing Authority (FHA) has had some pretty strict regulations in place for condo owners wishing to get an FHA Loan to purchase or refinance a condo.

Now, the FHA has announced some changes to it’s approval process, making it easier for some Condo projects and some borrowers to qualify for an FHA Loan.

Here are some of the changes the FHA has made:

FHA condo approved

  1. Delinquent Dues: FHA has eased restrictions on the percentage of units in a building that can be delinquent on their association dues. Going forward, no more than 15 percent of a building’s units can be more than 60 days delinquent. The previous rule was 30 days.
  2. Investor Ownership: Investors may own up to 50 percent of the total units in an existing building so long as at least half of the units have been sold, or are under contract to owner-occupants for use as their principal homes.
  3. FHA Certification: In condo buildings that are proposed, under construction, gut rehab conversions or those that have been built within the past 12 months, only 30 percent of the units must be owner-occupied in order to be FHA certified.

Read more about the changes in the Chicago Tribune.

Many condo projects that did not qualify previously may qualify under the updated guidelines.

If you’ve had a client who wanted a low down-payment FHA loan, but could not get approved because of FHA restrictions, it is probably time to have them to a loan officer again.

Jarred Alexandrov
Marketing Director and Loan Coordinator
617-456-1700 ext.115
jarreda@fairwaymc.com

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Don’t forget to come in, call or visit us at PrudentialUnlimited.com for all your Real Estate needs in Boston, Brookline, Jamaica Plain and surrounding areas.

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Why Getting a Loan Approved Will Get Harder October 20th

By Jarred Alexandrov of Fairway Independent Mortgage Corporation

It’s what nobody wants to hear…but getting a loan (especially a condo loan) may get more difficult as of October 20th 2012 due to an update to Fannie Mae’s “Desktop Underwriter” (DU) system.

The more you know about the changes, the better you can adjust to them in advance. REALTORS® can correctly advise their clients based on the these changes. Lenders can accurately qualify potential borrowers.

What is DU?

DU is the online system through which lenders like Fairway Mortgage submit their mortgage applications to get instant feedback on whether a loan will qualify under Fannie Mae’s standards.

We run DU on every loan, so when there is an update to the DU system, it can affect every loan application.

The Changing Appraisal Requirement

“Exterior Only” appraisal inspections will no longer be offered…full interior/exterior appraisals only.

The Change to Condo Project Reviews

DU will require a full project review, as opposed to a Limited Review, on principle residences in condo projects when the LTV/CLTV is greater than 80%.

DU Will Require 2 Years of Tax Returns from the Borrower

Fairway currently requires 2 years of tax returns (as opposed to 1 year), so this will not be a change for Fairway clients.

Funds to Cover Unpaid Credit Card Balances

Findings will require that we document that the borrower has sufficient funds to cover the unpaid balance of all 30 day charge accounts.

There are sure to be a few other changes when the DU update is released on October 20th 2012 that will impact the qualifying process of our loan applications.

However, the agents and lenders who adjust to these changes in advance will be able to best serve borrowers looking to get a loan in the 4th quarter of 2012 and beyond.

Be Looking out for more updates on the current market and what to expect for the rest of 2012 and 2013. Prudential Unlimited Realty will also be featuring some great Do-It-Yourself Articles, Rental/Sales Market Updates and GIVE-AWAYS! Check back weekly!