Friday, May 28, 2010

Two Credit Checks Now Required By FNMA BEFORE Closing

That is right, you read it correctly... Fannie Mae, the governmental agency that supplies most of the new mortgage money for new home loans is now requiring lenders to check borrower's credit at the time of loan application AND then again just before the loan closes. The new requirement is basically to insure, you the borrower's credit score has not gone down or your qualifing ratios become too tight to qualify for the loan. In many cases checking credit for the second time will actually prevent the loan from closing. Yes, many more buyers who thought they would be able to buy will find out they are not approved for their loan just before their expected closing.

To prevent a surprise from happening at your closing it is best to simply STOP or greatly reduce obtaining new credit during your home loan processing period. You do not want to be opening new credit card accounts, increasing balance in existing lines of credit, co-signing loans for anyone else or even increasing your credit card balances. Depending on your credit score and income to debt ratios, using more credit during your loan processing period could either cause you to pay a higher interest rate for your loan than what was originally quoted or totally prevent the lender from making you a loan all together.
In order to also further reduce lender and borrower fraud, Fannie Mae will also be requiring additional verificaton of borrower intent of occupancy. Simply put, the rules are beoming more strict and many unsuspecting borrowers will find they can not close on the home they selected. And remember, your prepaid appraisal fee and home inspection fee will not be refuned if you are turned down for financing because you credit score or debt to income ratios happen to change between the time you applied for the loan and the date of closing.

Be sure you discuss this new rule with your broker before you do anything that will increase your use of credit while your new home loan is being processed.

Thursday, May 27, 2010

Top FREE Real Estate iPhone apps as reported by TopAppCharts.com

1. Realtor.com (the world's largest and most visited web site) - Search for-sale homes, see multiple photos, property details, view open house information, save searches and listings, share listings with others and save private ratings and your notes for listings you like.

2. ZillowReal Estate - See for-sale homes, multiple photos, for rent and recently sold properties. See their computer generated estimated home valuations. (buyer be ware here though since I frequently find their estimate of value to be 10% to 12% in error - both too high and too low) You would really want to have a seasoned real estate professional complete a broker price opinion on any home you were seriously considering buying - OR selling before putting much value in their estimate of value). The site also provides you with monthly payments, asking price, number of bedrooms, bathrooms and allows you to save searches, receive e-mail notifications when new properties match your saved search criteria.

3. NearBuy Real Estate Search - Allows you to search classified listings of for-sale and for-rent properties. View maps based on results, see multiple photos and take a virtual tour.

4. Redfin Real Estate - GPS-enabled searches, view property details and photos. Searches are available in major markets.

5. For Sale For Rent Foreclosure Real Estate - You can view up to 25 homes for-sale, for-rent and foreclosure listings. Property details, photos and map listings.