QE3 on the way?

27 06 2011

The Federal Reserve stated that they may buy an additional $300 Billion of US Treasury bonds after the QE2 program ends this week.  Here is the article in Bloomberg.  

Mortgage rates are low now for three reasons: an economy that is artificially stimulated (ie QE1 and QE2), fear and greed.  And all these reasons are shaky at best.   

So if you are considering buying a home, do it now. 

If you are considering refinancing a home, do it now.

If you’d like a professional during this all-important transaction, please reach out to me.  I’d be happy to help lead you through this, so you can become one of the Oklahomans who saves over $20 Million on their homes this year.

Here to serve,

 

Wilhelm Koenig

 





Free food! . . . anyone hungry?

20 06 2011

 

Imagine a new restaurant just opened in town, one guaranteed to have the best food anyone has experienced in the past 50 years.  You’d expect them to have lines around the block and a waiting list weeks long, but that’s not the case.  You go inside, are seated immediately, and get to experience the delicious food and the staff’s full attention.  Oh, and I forgot to mention, the food is free.

The restaurant is our refinance market.  While rates are divebombing back down to the lowest levels in the past 50 years, almost no one is refinancing.  The restaurant sits empty.  Some had life issues like a divorce that kept them from refinancing last year.  Others owned a business and couldn’t qualify with their previous income.  Still others have been paying down debt over the past 12 months and are finally in the position to save big money.  And you are one of the few who know about this best-kept secret. 

So if you or a friend hasn’t visited the restaurant, just call me today and I’ll save you a seat.  Because best-kept secrets don’t last for long.





3.5 Tips for a simple condo loan process

14 06 2011

 

A condo usually means simplicity—less maintenance and worries.  But many buyers encounter unique challenges while getting a mortgage for their condo.  Here are some tips for buying your condo the simple way:

  1. Get pre-approved by a quality lender first, and have them do their homework on the condo(s) you are considering.
  1. Check to see if the condo is on the HUD or Fannie Mae approved condo list.  This could allow you to buy your new condo with a lower or no down payment.
  2. Look at the terms of the HOA rider before buying to check out the fees, maintenance, and coverage of the HOA.  Also read the bylaws to know if any will affect you.

3.5  Get to know your neighbors; you may share more than a wall.

 

I’d be honored to help you with the financing on your condo.  Please reach out to me to start the process.    Thank you!

 





Are you a member of a Native American tribe?

13 06 2011


If so, you may be eligible for one of the best loan products available, the section 184 loan.  It is a loan for registered members of Indian nations or their spouses, which allows you to put very little (or no money, depending on your tribe) down, receive a low interest rate and pay no monthly mortgage insurance.  It also is a loan type with common-sense underwriting guidelines, so if you have some unique situations that keep you from qualifying for a conventional loan, you may still qualify for a section 184 loan.

While close to 50% of the section 184 loans in the US are in Oklahoma, very few lenders offer it, and even fewer do it well, making the process simple for you.  We love our clients, and we especially love helping clients with Native Americans citizenship finance their homes on great terms.

Please reach out to us to start your approval process.  Thank you!





Reduce approval stress with cash-to-close tips

13 06 2011

Why would an underwriter even care where I got my closing money? 

I have enough money, what is their problem?

So tell me again, why do I need to get copies of my deposits for the last two months?  Arrrggggghhhhhhh!

 

Underwriters care.  They care a lot.  They care about putting immaculate loans on their books, loans that they can sell without issues, loans that are so clean they read like a Dick and Jane book.  They don’t necessarily care about your home or your situation.  Which means that they can make your life difficult if you’re unprepared. 

One of the big challenges on a loan is verifying the cash to close.  Oftentimes this can make you feel like you’ve just been inspected by the TSA on your finances.

But really, it’s simple.  Underwriters want to make sure that no one takes out a loan to use as the down payment for another loan, and they want to make sure that money isn’t changing hands illegally in the transaction—ie the seller giving you money for the down payment, etc.  That’s all—no domino chains of loans and no under-the-table deals.

Here’s what they typically want: one or two recent months of bank statements to show how much you usually average, and the source(s) of your recent deposits.  If there are no irregular, non-payroll deposits and your ending balance and average balances are within one paycheck of each other, you’re usually fine.

If there are a lot of irregular deposits, we switch to plan B: use a Verification Of Deposit or show where each deposit came from.  A VOD is a mini-statement from your bank that tells us your average and ending balance.  If these are similar, we can usually just use this and avoid getting cancelled checks for the random deposits.  Sometimes, though, an underwriter may request the full bank statements and verification of the source of all deposits.   Remember, they want to show the money used for the down payment wasn’t borrowed and didn’t come from the seller.  In this case, we’ll get a copy of the deposit slips and the cancelled checks that made up the irregular deposits, write a short explanation on the deposits, and move on.

The idea is simple, but things can get complicated right before the closing if you submit an updated bank statement that has weird deposits.  The best plan is to be proactive– keep copies and explanations of all your non-payroll deposits.  This way, you can have a simple, smooth loan process.

Here to help,





FAQs on how to get the lowest rate: (It’s easy)

6 06 2011



When a client tells me they want to get the lowest rate possible, I think, “Great.  You’ve come to the right place.”  The truth is that we all have the lowest rates.

No one “owns” rates.  No bank or investor corners the market on interest rates.  We all get our rates from the same market.  If you give your information to 10 lenders in town, you will probably get the same rate from all of them, which will be the current market rate for your loan scenario.

“But some lenders use their own money, and could offer below-market rates, right?” 

Banks measure risk to make a profit on their assets.  They either do this well, or they get bought by a larger bank.  Yes, some banks use their own money, usually for loans that they can’t sell on the mortgage market.  But if they do this, all the risk lies with the bank—this means they will either offer an adjustable mortgage so the borrower carries the risk of market adjustments, or they will price the loan high enough so their profits will offset the worst-case rate scenario.  Banks understand risk and offer products that will allow them to stay in business.

“But my loan guy promised he could get me the lowest rate”

Would you trust a stockbroker that promised a guaranteed return on stocks?

“But can’t a lender or loan officer choose to make less?” OR “How did the LO Comp plan affect this?”

It leveled the playing field even more.  Now lenders can only be paid on the loan amount, which means they have no incentive to make more money by giving you a higher or lower rate.  So, even if a lender or loan officer wanted to give you a lower or higher rate, he is forced to offer what his company will allow, which are market rates with the bank’s profits already priced in.

“So what does this mean to me?”

Since the rates are the same, the biggest ways to save on your loan

 are to get expert advice on how to structure the loan to meet your life needs.

Just think– It would be stupid to invest your child’s college money into an investment that was “locked away” until after they graduate, even if it had a higher rate of return.  It would be like buying a car to use as a fancy paperweight.  In the same way, many people end up spending thousands more on their home financing because they get a good rate and the wrong product for their needs.

Please reach out to me for both market rates and expert advice.  Here to serve,

Wilhelm Koenig

405.249.5993