110 W. New York Ave.
DeLand, FL 32720
386-734-4622
My Mortgage Company's Billie Joe Simoneau helps buyers in this changing market.
Visit their website at www.mymtgco.net
Billie Jo Simoneau, CRMS Billie Jo Simoneau of My Mortgage Company, 600 W. New York Avenue, DeLand. Call (386) 738-7765. E-mail her at: bjsmtg@yahoo.com
The nightmares of 2007 are behind us. But the reality of the change in the market is still with us.
The reality that I am referring to is the return to original underwriting guidelines to insure a safer mortgage market. Lenders are still lending money and rates are still very good.
What this really means is that borrowers must now verify all the information in the file, such as income, assets and any other documentation required to satisfy the conditions of the approval. Sub-prime is still available, just not at the higher loan to value ratios that were available during the so-called boom.
2008 will also be a year of stable values. This will be good for our buyers and sellers, as the market will return to somewhat of a stability, this will allow for appraisals that are more representative of the market.
In regards to credit, the strong will survive. This is the way it should be, those that do not pay bills in a timely manner will pay a rate that is equal to the risk that they deserve.
Actually, none of this is new. It is the safe way that we have done business for years. It was only during a few years that the looser underwriting guidelines were in place.
All of these changes or reversions to yesterday are good for the overall economy and the good of the market.
Shopping for a mortgage?
To increase your comfort level with the process, there are a few common mistakes to avoid.
1) Don’t base everything on the rate. Discount points should reduce the rate and increase the annual percentage rate. It is advisable to get a good faith estimate of costs as well as a truth-in-lending when comparing mortgage lenders.
2) Prepare yourself for closing costs. Closing costs are a necessary evil in the process, but knowing which costs are negotiable is the key. The recording fees and title fees are fixed based on the market that you are purchasing in. The lender fees and discount or origination fees are the negotiable items. In the state of Florida, if the rate and or fees change substantially, the mortgage professional is required to disclose this information as soon as available but no less than three days before closing.
3) Know who you are doing business with. These days, you can not be sure if the person you are dealing with is licensed, has training in the industry or has the experience necessary to get the deal closed. For an experienced, licensed, trained and educated mortgage professional, call Billie Jo Simoneau, CRMS, Billie Jo has a Master’s Degree in Business, is a Certified National Instructor for the National Association of Mortgage Brokers. Call her today (386) 738-7765, or e-mail her at bjsmtg@yahoo.com
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