About Your Raleigh Mortgage Loan Approval

The waiting period to buy again has been reduced from three years to one year…for those who qualify.

This is a great first step by FHA that potentially has a major impact on the housing recovery.
There will be many bugs to work out during the first 6-12 months of the program. Perhaps longer.

Raleigh Mortgage

The good (political and media) intentions must resolve the investor related repercussions, much like the mortgage reduction efforts, short sales, and HARP, when originally kicked off.

Otherwise, there will be extreme borrower and realtor frustration with the time and documentation
requirements, much like short sale and foreclosure approvals.

This program is for people who have suffered through an “Economic Event” as defined by FHA and lost their homes to pre-foreclosure sale, deed-in-lieu, foreclosure, bankruptcy, or debt restructuring.

The benefit is that the waiting time to buy again has been reduced WITH “re-establishment of satisfactory credit for 12 months.”

The documentation guidelines for borrowers are stringent for proof of the economic event.

For borrowers, the proper expectations must be set — this possible loan approval will be detailed, intense, and likely take longer than expected. You could even be turned down at the end.

For Realtors and Builders, expect longer periods for final underwriting decisions. 60 days may be a starting point. And Due Diligence dates for NC buyers…..that will be interesting.

Here’s why:
– Just because FHA says it’s so, lenders will have their own “overlays,” which are what they will or will not do, regardless of what FHA says.

– These loans are “manual underwrites” which means they are high risk and will be scrutinized by underwriters, as thorough as an endoscopy.

Re-Purchase – this means that months after a loan closes, FHA can come back to the lender who made your loan and say, “sorry, your judgment of our underwriting guidelines on this program was wrong, or you did not document satisfactorily. Fix it, or write us a check for the full loan amount plus many other fees.

Re-purchases are true today on every home mortgage loan. However, with a new program and “high risk” situations, re-purchases loom higher in the front of mind of underwriters and investors.

What to do next If you are a possible candidate:
Be lender selective. Find out theRaleigh mortgage companies interest in this program. Some lenders may not be interested at all.

– Be sure your loan officer is knowledgeable, familiar with the documentation, and a good communicator.

Be familiar with FHAs qualifying guidelines (search for Mortgagee Letter 2013-26). Then find out what the investor overlays are. Expect to over document everything. Practice patience.

Don’t be afraid to disqualify yourself, and wait a few more months to get fully prepared.

Summary: this is a move in the right economic direction for getting Durham FHA Loans. The buyers who go through loan approval early will smooth the road for others.

______________________________________________________________________________________________
This page will be the ongoing story of what works and doesn’t work during the
Raleigh mortgage loan approval process.

Borrower errors, attorney errors, realtor errors, and yes, even lender
errors.  Mine. I prefer to call them lessons, as the education never stops.

I’m beginning this series with a very important video, especially for borrowers
who feel safety and comfort working with BIG banks.

It is titled “Do you know where your home loan is approved?”

http://youtu.be/TpONRpUrNMk

Chase Mortgage Rates Raleigh, NC 27619

Hi. It’s Jim Enright with Corporate Investors Mortgage Group and I have a question for you. Have you ever considered where your loans are approved?

If you’re a consumer, if you’re a real estate agent or if you’re a financial planner, this is really really critical; and it’s a question you should ask.

So, for instance, a lot of vendors and big banks will say, hey we’re a virtual company and even though our underwriters are in Des Moines or Dallas or Jacksonville, Florida, it’s just like they’re—it’s just like they’re right here in my office…

And if you believe that well you’ll believe anything. But when I say that our underwriters in that we approve loans locally let me show you what I mean. Let’s go on over here.

So we’re going to go just right over here and I want to bring you into this office over here and I want you to meet Quentin Mallard.

Hello.

Quentin is one of our ace underwriters.

Ace.

Ace underwriters. Gets our loans approved, answers questions and is fantastic. Now, Quentin, I have a question for you. Now since this on video, are you an underwriter in real life or just on the Internet?

Very real life.

Okay. Alright. And in case this video is going to be audited at some point for quality control. You know how important quality control is.

Absolutely.

How do we document that you are actually an underwriter?

Well, lots of papers here. Files all over and I’ve been doing this about ten years.
BB&T Mortgage Raleigh, NC 27614.

And you’ve got a stack—

More paperback here so. Two computers.

Exactly. So I would say there could be some substantial evidence here to—what do you call that type of evidence in underwriting?  Is it common sense?

Common sense. Do it.

We’re going to go with common sense underwriting.

There you go.

Quentin, thank you so much.

Alright.

So again when I say that my underwriter’s literally next door to me that’s literally what I mean. I can go and ask Quentin questions.

So here’s what’s important to remember. At Corporate Investors Mortgage Group, when we say our loans are approved and closed locally we mean like right here in Chapel Hill or in Raleigh; all done here right in Triangle with us. Alright. Thanks so much.

Chase Mortgage Rates Raleigh, NC 27619

 

 

 

Leave a Reply

You must be logged in to post a comment.