Category: Home Buying

What’s a Good Faith Estimate?

Oh hello … there’s a blog here under all these cobwebs.  Been a while since I’ve been here. Sorry about that, but maybe you didn’t notice. I was working with some folks on Monday and suggested that as part of the pre-approval process, we get a Good Faith Estimate from the lender.  They looked at me and said, “what’s a Good Faith Estimate”?  Settle in … A Good Faith Estimate (GFE) is an estimate that’s provided by a lender, to a borrower, that estimates the closing costs for a particular transaction.  The estimate is provided within three days of loan …

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It Takes More Than Just a Good Name To Get A Loan

Seems like this would’ve been a good idea all along (from Marianne Lane, Coldwell Banker Mortgage): Lenders will now be required to independently obtain a phone number and address for the Borrowers employer (via Website, Phone Book, Etc).   If the borrower is self-employed, in addition to verifying the business’s existence on the web or phone book, we will be required to verify the existence of the borrower’s business within 30 days prior to the note date from a third party, such as a CPA, regulatory agency, or the applicable licensing bureau.   This information must be verified by a 3rd party …

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From A To Regulation Z

Ever heard of Regulation Z?  No?  How about Truth In Lending?  Still nothing? That’s okay – I’d be willing to bet most agents haven’t even heard of Regulation Z (sounds top secret, doesn’t it?).  Nevertheless, I received information from a mortgage professional, Tom Vanderwell, that I thought important enough it needed to be shared here.  Tom, thanks for sending me this. First, some background. Regulation Z is a component of a larger Act, called the Truth in Lending Act (or TILA).  The Truth in Lending Act was established in the late 1960’s to provide full disclosure of the terms and costs …

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The Ferrari vs. The Yugo, Part Two

Warning: This is a long post (2034 words, to be exact), so skip ahead to the end if you’re not interested.  It deals with an issue that’s central not only to the success of a New River Valley real estate agent, but also to a buyer or seller who’s relying on their agent to provide concise, well-formatted information in a timely manner. On Monday, I brought up the issue of The Ferrari vs. The Yugo, and this is the follow-up.  The following is a reprint of Sunday’s article in The Roanoke Times entitled “NRV Real Estate Community Weighs In On …

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What Do Mortgage Rates Do In The Summer?

According to Dan Green of TheMortgageReports.com, they go up. I’d heard someone once say that gas prices often reflect what’s going to happen with mortgage rates, and Dan not only reiterated the same, but why.  It’s an interesting correlation, and one I’ll be watching more in the future. They – gas prices OR mortgage rates – don’t seem to be cooling off anytime soon, so there just might be something to the idea. But Marianne Lane of Coldwell Banker Mortgage says she’s seen the opposite effect in the last 15 years, that often rates in July and December are lower …

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The Trouble With FHA Loans

A friend sent me the following email, and I had to post it.  According to Snopes.com it’s a recycled bit of fun, but nevertheless I thought it appropriate given the subject … and because I can see it happening.  Ah, bureaucracy … and lawyers. Part of rebuilding New Orleans caused residents often to be challenged with the task of tracing home titles back potentially hundreds of years. With a community rich with history stretching back over two centuries, houses have been passed along through generations of family, sometimes making it quite difficult to establish ownership and to even get loans …

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