Category: Mortgage News
Mortgage Basics: The Pre-Approval Process
| May 2, 2012 | Posted by Tammy under Mortgage News |
Many homebuyers are not aware that getting pre-approved for a home loan might just be what gets you them a new home faster. Before you start looking at homes, consider taking the time to talk with a lender or two about getting pre-approved for a mortgage so speed up the closing process and prevent missing the chance to purchase a home if you don’t have the mortgage approval necessary but other bidders do.
What’s Involved in Pre-Approval?
Before you can be pre-approved for a home loan, your credit, income, and debt history will all be checked to ensure you’re a good candidate for financing. This is also where you determine how much money you’re able to bring to the table as a down payment. The process itself is relatively quick and after these checks are completed, you’ll know how much can borrow.
Once you’re pre-approved, you generally have a period of 1 to 3 months to look for and secure a home before further action needs to be taken. You have the option of locking in your mortgage rate during this time as well, so even if mortgage rates up before you purchase, your lender will still provide you with the better rate.
No matter what amount you’re pre-approved for, you’ll see that getting financing early has a number of benefits.
The Advantages of Getting Pre-Approved
With pre-approval in hand, you’ll be seen as a serious buyer. Sellers often see someone with pre-approved financing as a more attractive candidate than a buyer who submits an offer without having secured a loan. After your offer is accepted and you’re under contract, your pre-approval will also help the rest of the purchase process go smoothly. You won’t need to worry about shopping around for a mortgage or approving for a mortgage as you are trying to close one of the most important deals of your life.
Getting a pre-approval is part of planning ahead when you intend to become a homeowner. Follow some of these steps to help insure you have a smoother home purchasing experience.
Mortgage Outlook for the Week of April 30, 2012
| April 30, 2012 | Posted by Tammy under Mortgage News |
Last week saw mortgage rates mostly unchanged in a very tight range hovering right above all time historic lows.
The FOMC met and left the FED funds rate at 0.00% – 0.25% and expressed some mixed concerns about health of the economy. There was also some other economic data that came out, the most important being GDP (Gross Domestic Product) data. GDP came out a bit on the disappointing side, which is good for mortgage rates as it bad economic news can sometimes exert downward pressure on rates.
Mortgage Rates and the Week Ahead
Expect market watchers to continue keeping an eye on Europe this week, especially in light of Spain’s recent downgrades. Any negative news coming out of Europe will put downward pressure on mortgage rates in the United States and significantly bad news could push mortgage rates to new historic lows.
There are a handful of economic reports coming out this week with the potential to move mortgage rates. As with news coming out of Europe, any significantly bad news, especially relating to employment in the US, has the potential to push mortgage rates into new historic low territory.
Economic Calendar for Week of April 30, 2012
- Monday - Personal Income and Outlays
- Tuesday - ISM Mfg Index, Construction Spending
- Wednesday - ADP Employment Report
- Thursday - Jobless Claims, Productivity & Costs
- Friday - Employment Situation
Mortgage Rates Are Near All Time Historic Lows, Should I Lock?
Chances are that locking in your mortgage rate now makes a lot of sense. Not only can we help you lock in a mortgage rate that is near all time historic lows, we can help explain which loan options exist and which ones might make the most sense for your situation.
Since mortgage rates can change many time per day, if you would like an up to the minute quote, feel free to find out where rates are using the free rate quote request form above or by calling us directly.
Mortgage Summary For the Week Ending April 27, 2012
| April 27, 2012 | Posted by Tammy under Mortgage News |
This week has been marked by historically low mortgage rates and one of the tightest trading ranges of the year.
Mortgage rates changed very little throughout the week, ending the week very near to where they started. This means that if you have not already locked in your rate at the current historically low levels, this may be your chance.
GDP (Gross Domestic Product) Data Disappoints
US Gross Domestic Product data for the first quarter of 2012 was released this morning. The data showed a disappointing growth rate of 2.2%, which was below expectations of 2.5%. Negative data like this can exert downward pressure on mortgage rates and will continue to cast doubt on the strength of the economic recovery that market watchers are monitoring.
Analysts are attributing the lower than expected GDP to less corporate investment occurring and less build-up of inventories.
Mortgage Rates and the Week Ahead
As always, market watchers will continue to keep an eye on Europe next week, especially in light of Spain’s recent downgrades. Any negative news coming out of Europe will put downward pressure on mortgage rates in the United States.
There are a handful of reports with the potential to move mortgage rates next week, Monday: Personal Consumption and Expenditures, Wednesday: ADP Employment Change and finally Thursday: Weekly Jobless Claims.
The FED Speaks: FOMC Meeting Update
| April 25, 2012 | Posted by Tammy under Mortgage News |
Today the Federal Open Market Committee or FOMC voted on the FED funds rate (the rate at which banks lend money to each other over night) and released it’s thoughts on the state of the economy moving forward. The FOMC voted to keep the target range for the federal funds rate at 0% to 1/4% with only Federal Reserve President dissenting.
The FED funds rate at been at its current level since late 2008.
The FED on the Economy
The FOMC stated that since it last met in March, the economy has been expanding moderately. They also believe that labor market conditions have improved in recent months while the unemployment rate has declined, while remaining elevated. The FOMC sees household spending and business fixed investment continuing to advance but believe the housing sector is still depressed despite some signs of improvement.
The FOMC also referenced mentioned that, “Strains in global financial markets continue to pose significant downside risks to the economic outlook.” This means the FOMC believes that the debt insolvency woes of Europe, specifically Greece, Spain and Italy, continue to pose a risk to the US Economy.
From the FOMC Press Release:
To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee expects to maintain a highly accommodative stance for monetary policy. In particular, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.
How Did the FOMC Meeting Affect Mortgage Rates Today?
Today was volatile with mortgage rates mixed. The problem is that mortgage rates can change many times per day, especially on volatile days like today. To get the most accurate mortgage rate quote, please submit a rate request using the form above or call us directly.
Mortgage Updates for the Week of April 23, 2012
| April 23, 2012 | Posted by Tammy under Mortgage News |
Last week concluded with mortgage rates moving in an extremely tight trading range, with rates closing the week near all time historic lows. The economic data that was released did little to move the markets and things were fairly quiet on the Europe front.
What’s Moving Mortgage Rates This Week?
Economy
We will see a lot of activity this week in terms of economic data being released that can move mortgage rates. In addition to GDP data for the 1st quarter, reports relating to jobless claims and new home sales will be released.
More importantly, there is a two day FOMC (Federal Open Market Committee) meeting being held, which will be followed by a press conference being held by FED chairman Ben Bernanke. Since there have been more and more signs that the recovery that was believed to be in progress is slower than first thought, the market will be listening intently to any comments coming from the FOMC statement. Any news that indicates the economy is improving can push mortgage rates higher, while any less than good news has the potential to put downward pressure on mortgage rates.
European Debt Crisis
As usual, market watchers will be keeping an eye on Europe this week for any news about potential debt insolvency issues in Spain and Italy. As is the case with any economic news that has the potential to affect the US, good news coming from Europe as the potential to move mortgage rates up, while bad news has the potential to move mortgage rates down.
Economic Calendar for Week of April 23, 2012
- Monday - N/A
- Tuesday - S&P Case-Schiller HPI, New Home Sales, Consumer Confidence
- Wednesday - *FOMC Forecasts, *Chairman Press Conference, Durable Goods Orders
- Thursday - Jobless Claims, Pending Home Sales Index
- Friday - GDP, Consumer Sentiment
Where Are Mortgage Rates Now?
Mortgage rates can change many times per day. To get an up to the minute mortgage rate quote, simply fill out the fast rate quote form above or call us directly.
Not only can we help you get a fast and free mortgage rate quote, but we can also answer any mortgage related questions you might have. Additionally, we can put together a mortgage strategy that makes the most sense for your needs.
Should I lock my rate? This is also a popular question. While the likely answer is yes, please call us directly to get to make sure whether or not locking a mortgage rate in near all time historic lows is the best move for your given mortgage scenario.
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