from your Realtors:|
The $8000 tax credit has been
extended until 2011 for members of the Military and certain other
Federal employees. If you know anyone that has served in the
Military for 90 days between December 31, 2008 and May 1, 2010 then they
qualify! They do not have to repay the money either. Who do
you know that is in the Military or Foreign Services that is still
eligible for the Tax Credit?
Potential Loan Closing Killer
Just when you thought the underwriting scrutiny could not get any
worse, Fannie Mae and Freddie Mac have now implemented a new rule - LQI
(Loan Quality Initiative). Fortunately, this new rule currently only applies to
Conventional Loans. FHA and VA have not indicated that they will also
adapt this new rule to their mortgage guidelines...yet.
These new guidelines went into effect on
June 1, 2010.
Homebuyers could now find their closing
stopped the day of closing if they make any new purchases or changes to
their credit, income or assets after they make the loan application. The
LQI rules require Lenders to re-check all of the borrower's data to
ensure that there have been NO changes since the loan application.
have long been advised by their Realtor and their Mortgage Loan Officer
not to make any purchases or open any new credit during the mortgage
Unfortunately, many of those homebuyers did not listen.
Fannie Mae and Freddie Mac's quality control audits of closed mortgage
loan files revealed that many borrowers had in fact opened new accounts
or increased existing debt balances. These major differences between the
documentation presented to the underwriter and the actual facts of the
borrower's credit income, assets and ratios at time of closing has
prompted this new LQI rule.
The actual rule states that all
Lenders must "determine that borrower liabilities incurred up to, and
concurrent with, closing are disclosed and evaluated in qualifying the
borrower for the loan". Lenders know that the best way to do this is to
run an additional credit report right before closing. Lenders will be
taking a close look at each file to ensure the borrower's occupancy
status of the property is correct. Social Security numbers and filed IRS
tax returns will also be closely reviewed.
Lenders are utilizing
a new credit report call a "Comparison Report" which quickly and easily
highlights changes between the qualifying report and the new refreshed
Any changes, even minor ones, could result in a closing
delay, pricing adjustment, or, worst, loan approval being withdrawn.
Mae's LQI mandates are already in place, and the best advice to
borrowers is NO SPENDING before
Super Sunday Winner
May 16, 2010
Attend our open
houses to be entered to win a drawing every month. One lucky winner
will take home $1,000!
Next Super Sunday will be
August 8, 2010 (2PM - 5PM)
Money-saving Home Repairs
leaky faucets is just one home improvement guaranteed to save you
Other easy upgrades
Area Participating Restaurants
26 through August 8, 2010
event showcases Downtown Atlanta restaurants with special dining
three-course dinners for $25.00 and $35.00 per person, plus tip,
Georgia and South Carolina are home to at
least 40 species of snakes. Most
are harmless and, for the most part, beneficial to the environment.
Don't let all snakes
We offer our clients everything they need - real estate,
mortgage, insurance, home warranty, and closing services.
Jamie Hook & Patsy Pardue
of Better Homes and Gardens Real Estate Metro Brokers.