Posts Tagged ‘utah mortgage broker’

Got a question from a client the other day that I hear a lot, so I thought I’d post my response to it, in the hope that it would be helpful to more than just her.

Q: Why do I need to provide my social security number and birthday?  I’m not sure I want to give out that information.

A: Good Morning!

Let me give you a bit better idea what the approval and discovery process is for your loan.  There are, of course, a number of loan programs we can access.  Based on the info you provided already, we can eliminate most of those, and we’re left with three or four that are possibilities.

The closer we get to choosing a program, the more information we need, and the more specific that information has to be.  When we get to where we are now, choosing one loan out of the entire set of options, we are essentially underwriting the file as we go.  The Desktop Underwriter system is the same framework that the lender will use in underwriting the file, which has great advantages, but one of the disadvantages is that it requires mountains of specific data in order to function.  It is making very fine calculations about income, assets, and credit, and without the exact numbers, it doesn’t work.  We provide the income and asset numbers – though we will later have to verify to a human that those numbers are accurate – but the credit numbers it gets for itself.  To get those, it requires social security numbers and birthdays.

When it’s finished, we can have confidence that we have a real approval on a real loan that will eventually make it to closing.  But until we get the data, we can’t proceed from here.

These are all bank approved prices of foreclosures, no waiting to see if the bank accepts the offer!!!  All are in average to above average condition as well and all were built in the past 5 years!

10 best buys- May 27 2009

1. North east Lehi 1600 sq ft, Originally sold for $225k- bank approved price for $158k

2. North west Orem, 2778 sq ft, exact same model sold in Dec 2008 for $205k, bank approved price of $165,000

3. North East Eagle Mtn, 3030 sq ft townhouse, brand new, bank approved at $180,000, that’s $60 per sq ft

4. Ivory Ridge, Lehi, 2397 sq ft townhouse, same exact model under contract right now for $245k, bank approved at $185,000

5. South west Saratoga, 3900 sq ft, bank approved price $245,000, similar house four houses down sold last June for $370,000

6. North East Eagle mtn, 5894 sq ft, House on same street sold last August for $340k, bank approved $284,000

7. South West Bluffdale, 5000+ sq ft, was once under contract for $700k, bank approved price $349,000

8. South west Herriman, 6800+ sq ft, house 1000 sq ft smaller on street sold for $522,000 within last year, bank approved price of $350,000-This is the steal of the week!!!!!!

9. North East Provo, 6200 + sq ft, house on same street only 600 sq ft bigger currently listed at $995,000, bank approved price $425,000!

10. Pepperwood house, 6600 sq ft, half acre, bank approved price of $579,000

11. Southwest Riverton, 6700+ sq ft, fully decked out, originally appraised for $1.8 million, bank approved price of $975,000

Call to get more info on these or other great properties! These are all bank approved prices of foreclosures, no waiting to see if the bank accepts the offer!!!

Analysis: Folks, it just isn’t pretty out there.  Bill Gross of PIMCO says the US is in some danger of losing its AAA bond status, the Obama Administration appears to be valuing labor contracts over the demands of Chrysler and GM bond holders, the government is offering record amounts of Treasury debt in an effort to keep spending, and the deficit is $1.8 trillion.  The geniuses at the Fed and Treasury thought that they could game the markets, get rates where they want them just by saying “boo” (and spending a $ trillion or so).  But that doesn’t work, fellas.  The market is bigger than that.  It’s bigger than you.  It will go where it likes and you can’t stop it.

Breaking News: FHA says they are drafting a program to allow the $8000 tax credit to be used as a down payment on FHA loans. Currently this cannot be done. For some getting a Utah mortgage (and California, and other states), that could shortly mean $14,000 down to buy certain homes. Details to be released in the next week or so. Watch this space for more.

Markets: Retail sales came in weak today, and last month’s number was revised downward, so stocks are losing ground, and bonds are moving higher. We have now gained back everything we lost last week, though we aren’t quite back to where we were the week before. Up and down in the same range is a sign of a market bottom. Be forewarned.

Analysis: Heard on Twitter: “Silently cheering for bad economic news is what you do if you’re looking for lower mortgage rates.” @tylerosby It’s kind of sad, but it certainly is true. I try not to hope for bad news, but when it comes, I don’t feel as bad as I otherwise might. These days, though, I genuinely hope that the economy improves, because although there is a “benefit” to mortgage refinancers and purchasers (and, let’s face it, to me) from bad news causing rates to drop, the REAL benefit to us would be if the economy revived and people started working and earning again. Remember, you make a whale of a lot more money having a decent job than you do shaving .25% off your mortgage rate. Any raise you might get would dwarf the money you’d save from that tiny a decrease in your rate.

I think we have the signs of a rate bottom here. We’ve been bouncing around in this general range for over a month now. Everything points to rates moving higher from here.

Currently, we’re sitting between 4.75% and 5%, depending on the loan and the program.