According to recent reports, the expiration of the Home Buyer Tax Credit failed to jump start the fledgeling housing market.  In fact, nationwide new home sales are down 33% and it looks like we may have a renewed housing slump that could threaten the broader economy.

New-home sales for May fell 33 percent from April and came in at a seasonally adjusted annual sales pace of 300,000, the Commerce Department said Wednesday. That was the slowest in the 47 years records have been kept. And it was the largest monthly drop on record. Sales have now sunk 78 percent from their peak five years ago.

On a positive note- This week The Federal Reserve repeated its pledge to hold interest rates at historical lows in an effort to help stimulate economic growth.

The housing market represents a significant contributor to the nation’s GDP.  It is imperative that we find ways to individually contribute to the recovery of our industry.

Read more: http://www.idahostatesman.com/2010/06/24/1243237/losing-federal-tax-credit-hurts.html#ixzz0rmtXSXZw

Author: Randall Filbert, MPA  www.MyBoiseHomeLoans.com www.FamilyGuideToFinances.com

www.MyBoiseRealEstate.com www.BuyandSellinIdaho.com

This blog’s intention is to provide inspirational stories as well as historical accounts and insight into matters concerning the Boise home loan and Boise real estate markets. These are my opinions and should not be regarded as factual data.

Do not let your borrowers do these 6 things while you are trying to help them qualify for a home loan!

When buying a home, there are two stages in the home loan approval process.

Stage 1 begins when a home buyer submits a mortgage application to their loan officer for a pre-approval.

A pre-approval is a preliminary mortgage approval that says — at a given purchase price and down payment amount — the home loan application will very likely be approved.

Stage 1 ends when the buyer signs a purchase contract on a home. At this point, the preliminary approval is useless because the buyer now needs a real home loan approval from an underwriter and not a loan officer.

Stage 2. During the second phase of the approval process, a mortgage underwriter is reviewing income, assets, credit, job history, and other items, too; the underwriters job is to make sure that the buyer meets the bank’s criteria for lending.

If the loan officer did his job in Stage 1, Stage 2 is just a formality. And most times, it all goes according to plan.

Occasionally, though, a home buyer sabotages his own mortgage approval by inadvertently changing his risk profile. I’ve had clients quit their jobs, finance expensive items like cars, and file for divorce!  All of these actions will alter the preliminary approval!

Consider this blog a quick reminder of what not to do while you’re between Stage 1 and the completion of Stage 2 of the home loan approval process. Following these pointers will help keep the risk profile consistent.

1. Don’t buy a new car (or take on a larger lease payment)
2. Don’t quit your job or change industries (and certainly don’t switch to a heavily commissioned role)
3. Don’t transfer large sums of money into or out from your bank accounts (and remember that “large” is relative)
4. Don’t miss a payment to a creditor (even if you don’t think you owe it)
5. Don’t open a new credit card (even if you’re getting 10% off your new bedding)
6. Don’t accept a cash gift without talking to your loan officer first (because there’s rules on how to accept them)

We need to educate our clients on these issues and remind them that home buying is a process . By educating our clients we are ensuring that their home-buying experience is easier.

Author: Randall Filbert, MPA  www.MyBoiseHomeLoans.com www.FamilyGuideToFinances.com

www.MyBoiseRealEstate.com www.BuyandSellinIdaho.com

This blog’s intention is to provide inspirational stories as well as historical accounts and insight into matters concerning the Boise home loan and Boise real estate markets. These are my opinions and should not be regarded as factual data.