factors affecting mortgage rates

Making Income Changes While in the Process of Obtaining a Mortgage

                  What happens if you have to change jobs while you are in the middle of getting a mortgage? Lenders typically recommend that you do not make major changes if you are in the middle of trying to get a mortgage, because lenders look for continuity, and will have to re-verify information if major changes are made. However, many folks do not have a choice: sometimes a new opportunity comes up, or are forced to change jobs. The good news is that lenders can work with you, and use the new information (income, salary, etc.) from your new position for your qualifying. This process can be started with just an offer letter, so the terms (salary, start date, etc.) are known to get the process started. Typically, at least one pay stub will be required before closing to show that you have…

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What Is the Mortgage Appraisal Process?

                    Today, we are going to talk about appraisals and the mortgage appraisal process. When you go to get a mortgage, lenders approve YOU, and your specific financial situation. A lender will begin by looking at your credit, your income and your debts, the sources of your income, and the specific property you are buying or refinancing. The lender will check that the cost of the home is where you need it to be from a financial standpoint, and that it comes in at the right value by doing an appraisal. Finding an Appraiser When doing an appraisal, a qualified appraiser is brought in to appraise the value of the home. Previously, we could pick the appraisers that we brought in to do the appraisal that knew the area well. However, today there is more of a blind system: appraisers are…

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Can You Believe the Mortgage Rates You see in the Paper (or on the Internet)? Why Advertised Mortgage Rates are “Never Right” – Factors Affecting Mortgage Pricing – Part 2

(This is an update of a previous blog post) The one question I am asked more frequently than any other is, What is your rate? This is a great question because you obviously want the lowest rate, but it’s a question that is impossible to answer. First of all, the rate will depend on what type of loan you are getting, whether you want to pay extra money in points and fees to get the best rate (which is what happens with the low rates you see in ads). Even if you were comparing apples to apples and making sure the loans are priced the same way, you can’t compare mortgage rates without without taking into account all the factors in your personal situation which go into pricing a loan. When  a lender takes on a new mortgage their goal is to minimize their risk and make sure that they…

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Illinois Mortgage Rates Weekly Update

Welcome to Illinois Mortgage Rates and News week in review for the week ending May 23rd, my take on the week’s financial news and how it affected Illinois mortgage rates. The economy has been on a tightrope for quite some time, perched above the brink, on one side inflation the other economic stagnation. The Fed has been walking out on this tight rope, careful to not lean too far one way or the other. It’s been a difficult task and so far it looks like they are dipping on both sides, but still maintaining balance. The economy is slowing and inflation is heating up, but there are signs we are heading in the right direction. Right now the markets see inflation as the bigger threat. The Fed has signaled that they are through with rate cuts, at least for the foreseeable future, and that they are prepared to do whatever…

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Illinois Mortgage Rates Week in Review

Today’s Illinois Mortgage Rates and News week in review is my take on the week’s financial news and how it affected Illinois mortgage rates. There has been a see-saw battle over the last weeks and months as to what our bigger economic problem is – inflation or recession. Over the last few weeks with the release of a weaker than expected jobs report and comments by Fed Chairman Ben Bernanke, recession was gaining a decided edge. This week is notable because it is now in the open. All the powers that be are using the R word. We are either in one, or about to enter one. Inflation is still out there, but it’s on the back burner, a problem for another day. Most of the news coming out this week confirmed the trend. Retail sales for December were released and instead of the small gain that was expected, sales…

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