This week a Realty Times article provided some insight into a rebounding market. Here are the highlights:
*Pending home sales rose sharply, by nearly 7 percent, in the last month measured by the National Association of Realtors.
*Pending sales were up in all four major regions of the country—and that caught the attention of some key industry economists.
*Orawin Velz, economic forecaster for the Mortgage Bankers Association, said in a commentary that "the steady improvements in pending home sales are encouraging," and confirm the view that existing home sales hit their cyclical bottom in January and are likely to continue to rise in the coming months.
*Since the January low point, she noted, the Realtors' pending sale index is up by 13 percent.
*Mortgage rates continue to be favorable, an average of 5.3 percent last week for 30 year fixed rate loans, 4. 8 percent for 15 year fixed, and those rates are pulling in growing numbers of home purchase loan applications.
*According to the Mortgage Bankers Association's weekly survey, new applications to buy houses increased by nearly 7 percent in the week ending July 3rd.
Real numbers for Utah County—
Active Sellers in Utah County
June - 2009 4442
July - 2009 4378
Down by 1% in one month (good news)
Active Buyer's in Utah County
June - 2009 883
July - 2009 1055
8.4% increase in the number of active Buyers in one month (good news)
Friday, July 10, 2009
Working Together
Everyone plays an important role to make the home buying process a success! Here is a break down of responsibilities for homebuyers, realtors and lenders.
Homebuyer needs to:
• Obtain a credit-checked preapproval before you start to shop for a home. (Applying in person may help expedite the process.)
• Review the timeline and potential impacts with your home mortgage consultant so you can keep your REALTOR® informed.It is wise to plan for at least a 30-day close.
• In the initial disclosure packet you receive, the impacts of the new regulations and investor requirements are outlined. Make sure to pose any questions to your home mortgage consultant.
• Know that these new regulations and investor requirements are in place to ensure you have time to consider your loan choice and feel confident to move forward.
• Review the appraisal delivery disclosure and determine whether or not you wish to waive the 3-business-day review period prior to closing.
• Understand that the interest rate on your loan impacts the APR. This means that until you lock in your rate, an exact APR cannot be determined. Minimally plan on locking at least 10 business days prior to the date you wish to close.
• Understand that a change in mortgage product could impact your APR and therefore your estimated closing date.
• Understand that changes in fees by third parties such as your settlement agent could also impact your closing date.
Realtor needs to:
• Set realistic expectations upfront and throughout the transaction with the listing agent, the seller and the homebuyer in regards to potential closing dates. It is wise to plan for at least a 30-day close.
• Discuss these new provisions with your settlement agents immediately to avoid unnecessary delays down the road. It is critical that any third party fees that impact the APR are accurate because any change of fees that increases the APR more than .125% will require the lender to re-disclose the TIL — allowing 7 business days before the transaction can close. This allows 3 business days for mailing and provides the homebuyers with the time required to determine if they are comfortable with their loan choice.
• Provide the settlement agent information to the lender as early in the process as possible.
• Make sure the homebuyers understand that their interest rate impacts their APR and that until that rate is locked
(which is at their discretion), the initial TIL will not be accurate, so a PreClosing TIL disclosure will likely be needed.
Home Mortgage Lender/consultant needs to:
• Help homebuyers understand timelines and anything that can impact their closing date. It is wise to encourage homebuyers, and REALTORS®, to plan for at least a 30-day close.
• Take applications and help homebuyers understand their product options.
• Issue homebuyers their initial disclosures.
• Collect fees. (Note: unless the initial disclosures are handed to the homebuyer the same day as you take his or her application, fees cannot be collected until the customer has received his or her initial disclosures).
• Ensure the loan is locked at least 10 business days prior to the desired close date (4 business days for the Reverse Fixed Rate product).
• If the APR increases more than .125% then the lender must re-disclose the TIL 7 business days before the transaction can close (4 business days for the Reverse Fixed Rate product). This allows 3 business days for mailing and provides the homebuyers with the time required to determine if they are comfortable with their loan choice.
Homebuyer needs to:
• Obtain a credit-checked preapproval before you start to shop for a home. (Applying in person may help expedite the process.)
• Review the timeline and potential impacts with your home mortgage consultant so you can keep your REALTOR® informed.It is wise to plan for at least a 30-day close.
• In the initial disclosure packet you receive, the impacts of the new regulations and investor requirements are outlined. Make sure to pose any questions to your home mortgage consultant.
• Know that these new regulations and investor requirements are in place to ensure you have time to consider your loan choice and feel confident to move forward.
• Review the appraisal delivery disclosure and determine whether or not you wish to waive the 3-business-day review period prior to closing.
• Understand that the interest rate on your loan impacts the APR. This means that until you lock in your rate, an exact APR cannot be determined. Minimally plan on locking at least 10 business days prior to the date you wish to close.
• Understand that a change in mortgage product could impact your APR and therefore your estimated closing date.
• Understand that changes in fees by third parties such as your settlement agent could also impact your closing date.
Realtor needs to:
• Set realistic expectations upfront and throughout the transaction with the listing agent, the seller and the homebuyer in regards to potential closing dates. It is wise to plan for at least a 30-day close.
• Discuss these new provisions with your settlement agents immediately to avoid unnecessary delays down the road. It is critical that any third party fees that impact the APR are accurate because any change of fees that increases the APR more than .125% will require the lender to re-disclose the TIL — allowing 7 business days before the transaction can close. This allows 3 business days for mailing and provides the homebuyers with the time required to determine if they are comfortable with their loan choice.
• Provide the settlement agent information to the lender as early in the process as possible.
• Make sure the homebuyers understand that their interest rate impacts their APR and that until that rate is locked
(which is at their discretion), the initial TIL will not be accurate, so a PreClosing TIL disclosure will likely be needed.
Home Mortgage Lender/consultant needs to:
• Help homebuyers understand timelines and anything that can impact their closing date. It is wise to encourage homebuyers, and REALTORS®, to plan for at least a 30-day close.
• Take applications and help homebuyers understand their product options.
• Issue homebuyers their initial disclosures.
• Collect fees. (Note: unless the initial disclosures are handed to the homebuyer the same day as you take his or her application, fees cannot be collected until the customer has received his or her initial disclosures).
• Ensure the loan is locked at least 10 business days prior to the desired close date (4 business days for the Reverse Fixed Rate product).
• If the APR increases more than .125% then the lender must re-disclose the TIL 7 business days before the transaction can close (4 business days for the Reverse Fixed Rate product). This allows 3 business days for mailing and provides the homebuyers with the time required to determine if they are comfortable with their loan choice.
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