Video Interview: How the Fannie Mae/Freddie Mac Bailout Affects Buyers
September 12th, 2008 Categories: Foreclosures & Short Sales, Market Trends, Mortgage News, Real Estate News
We’ve all heard the news, the Fed has officially bailed out Fannie Mae and Freddie Mac. Alright, now how does that affect me?
If you are shopping for a new home loan or considering refinancing an existing loan, it could have a profound effect on your buying power!
To better understand the Fed’s announcement and figure out exactly what it means for the housing market, we went to the experts. Kevin Kueneke, a Senior Loan Consultant at CW Mortgage, breaks down the news and explains what it means for San Diego.
Watch the video interview below and find out whether or not this news will change your buying power.
[youtube]http://www.youtube.com/watch?v=KBwUSj78RTQ[/youtube]
Want more information?
Read Kevin’s “First Take” on the Fed’s Announcement to Bailout Fannie Mae and Freddie Mac.
Do you have a Real Estate or Financial Question?
Send us an email and we will post a video interview with an expert answering it for you!
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6-Month Seasoning For Conventional Cash-Out Refinances
September 11th, 2008 Categories: Mortgage News
A recent and very important change in lending guidelines regarding cash out refinances is starting to rear its ugly head. Bottom line is that cash out refinances are now not allowed within the first six months of a purchase transaction for all occupancy types. 
How does this affect potential buyers? Properties that are priced to sell are receiving multiple offers, especially REO’s. Many buyers, whether buying a property as an investment, second home, or even principal residence, are deciding to submit all-cash offers so that their offer is the strongest. Their intention is to do a cash-out refinance immediately after the purchase, re-access the down payment, and use that money to purchase another home, or just to replenish their reserves.
This new six month seasoning period may make some of these buyers rethink the approach to their initial offer. Not the best of news, but important to know.
Quick Clarification: Some folks think I am talking about tapping into short term appreciation or accessing equity from a property purchased under market, not the case. This is strictly related to using the original sales price of the home as the value for purposes of the refinance during the first six months.
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Do You Have Your Loan Emergency Kit Ready?
September 5th, 2008 Categories: Mortgage News, Real Estate News
I was reading an article by Laura Rowley on Yahoo Finance today regarding the importance of being prepared for potential natural disasters. It reminded me that many people that live in Southern California have some sort of emergency disaster kit stashed away in their garage. A typical kit may include drinking water, some can goods, flashlight, batteries, candles, medications, etc.
As a homebuyer, you should prepare your loan paperwork the same way and have all items ready in case of a loan emergency. Even though you provided your lender with the items necessary to process your loan, it is a good idea to keep a “shadow file” or Loan Emergency Kit just in case something gets misplaced…or the copier eats the only copy your lender had of your last paystub, W-2, you name it. 
That credit card late payment or mortgage late payment you had removed last year might show up again. Do you have the letter from the creditor handy? What about your landlord from a year ago. Do you still know how to contact them?
Here are some other items to keep in your Loan Emergency Kit:
- Proof judgments and/or tax liens have been paid.
- Copy of divorce decree and/or child support order.
- Paperwork regarding length of time a student loan is deferred.
- If retired, awards letters for social security or pensions.
- Quarterly asset statements (401k’s for example).
- Receipts or canceled checks for rent payments. More and more lenders are requiring this type of proof of payment if the landlord is a private individual.
- Bankruptcy papers including list of creditors and the discharge paper. If your lender did not ask for these at the beginning of the process, chance are that they will need them at the end.
- Tax returns with all schedules.
- W-2’s.
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Paystubs – save them all until the deal is closed.
Getting a call at the 11th hour from your lender requesting something you have already provided can be extremely frustrating. Sure, you could stomp your feet in anger and really give your lender a piece of your mind. You could spend a few extra days thinking of ways to cause them the same emotional stress that they are causing you. Or, you could just re-fax or re-email the missing item. Remember, you are dealing with people and all people, including you, make mistakes.
Is there any excuse for these occurrences? Of course not. But underwriters are going over every file with a fine tooth comb these days and having your information at the tip of your fingers can iron out a small wrinkle before it becomes a giant speedbump.
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