Eugene Mortgage News

 


Are you looking to build your own home and need a construction loan? There have been new updates to the requirements for construction loans that will make building your dream home more attainable! These new updates include:

  • Now as little as 10% down with a maximum loan-to-value (LTV) of 90%.
  • Six, nine, or twelve-month construction term programs allowing for payment of interest only during construction.
  • Tear-down and major renovation construction eligible for twelve-month construction period.
  • Soft costs (architectural, engineering, and permit fees) may be financed.
  • Offering 15 or 30-year loan terms.
  • Eligible property types are: 1-unit site-built homes, Planned unit development (PUD), Modular home, Site condominium (detached), Rural properties, Tear-downs & major renovation.

Give us a call at 541-683-3300 and we would be happy to answer any questions you may have! 

Posted in:General
Posted by Mike Herborn on January 19th, 2018 9:18 AM



Almost every TV channel has a commercial about the new "fast mortgage" or "rocket mortgage"! This service is not exclusive to just a few lenders, but is available to many lenders. 

Did you know that we in fact work with lenders that have a digital mortgage system that can reduce the stress and time of the loan process? Digital mortgage can take the strain out of the mortgage process and help everything run smoother. Here are just a few ways digital mortgage and verification can help the loan process: 


  • Nearly the whole process is done digitally from start to finish.
  • Digital verification for employment, income, and assets. 
  • Instant verification of bank statements directly to the platform, eliminating the need to email or fax them. 
  • Takes away the need for these physical documents, saving you time not having to acquire and print them off. 
  • Creates a more secure way to provide this sensitive information. 

This new technology will create a much faster and enjoyable home buying experience. If you ever have any questions don’t hesitate to give us a call at 541-683-3300. We would be happy to help you! 



Posted in:General
Posted by Mike Herborn on January 12th, 2018 10:06 AM


What is a rate lock?

A rate "lock" or "commitment" is a promise from the lender to lock in a particular interest rate for you for a certain period during your application process. This ensures that your interest rate will not rise as you are going through the application process. This protects you from the rates going higher.

 

When should you lock in?

If you think that interest rates may go up, this would be the time you want to lock. But if you think they will lower, then you may choose to not lock and carry on.

It is always good to consult your mortgage consultant for their opinion on what the market is doing. 

What about when rates rise?

When you lock a rate and the rates rise, this is when it feels worth it. You are locked in at a lower rate and are protected.

Rates are constantly moving every day. There are so many different factors that can have an impact on what the rates will do. It is always less stressful to lock your loan early in the process that way you know exactly what your rate and payment are going to be. 


What about when rates lower?

It is possible if you are already locked in that rates could drop. If rates have dropped significantly and we are at the end of the process cleared to close, we may be able to lower your rate based on the new market conditions. 


Posted in:General
Posted by Mike Herborn on December 29th, 2017 4:08 PM


Things to avoid when purchasing a home

 

Many new home-buyers make the mistake of rushing out to buy things to fill their home as soon as the seller says "yes" and the loan is approved. There are still a few major hurdles to jump before closing. Here is a list of things to avoid when buying a home:

 

  1. Don’t buy luxury items

    Fight the urge to go out and buy your new home furniture, electronics, or appliances. Opening new credit could put your credit worthiness at risk when you will need it the most. Using cash to buy things can also be a bad idea because most lenders look at your cash reserve when approving you for a loan.

  2. Don’t go searching for a new job

    Lenders will want to see a consistent job history on your application. Getting a new job before you apply for a mortgage may not jeopardize your approval. But in some cases, changing jobs during the mortgage approval process could raise concern and delay your application.

  3. Don’t move money around or change banks

    Most lenders will have you submit recent bank statements for accounts in your name: savings, checking, money market, and other assets. Your lender needs to see a consistent rise and fall of your funds each month. Even for innocent reasons, transferring money or switching banks may make it more difficult for your lending institution to document your account history.

  4. Don’t spend your savings

    Avoid spending the money you have set aside for closing costs. Keep these funds untouched in your savings until closing time.

  5. Don’t give Earnest money directly to seller

    Your Earnest money deposit does not belong to the seller: it remains yours until closing. The Earnest money is to be applied to your down payment and expenses upon closing. It's wise to put the funds into a trust account with the Title and Escrow Company or your Real Estate Company’s trust account.

  6. If you are currently renting before you purchase your new home 

Do not give 30-day notice until the inspections have been completed and you have negotiated any repairs that you want to have done. You also want to make sure that the appraisal has been completed and it made the value that you are paying. 


 

 

 


 

 

Posted in:General
Posted by Mike Herborn on December 22nd, 2017 10:36 AM