Rates take a Hit. Changes to come.

By
Real Estate Agent with 972.978.3109 0595204
https://activerain.com/droplet/4Xqc

"Election" and "politics" are likely trigger words that you avoid at your workplace, over dinner with friends, and even at home by now. After 19 months of campaign drama, the nation elected a new POTUS last week - and the ripples came roaring after. 

There was a bit of immediate volatility in the stock market, and values fluctuated a bit after the polls had closed. But what does it all mean for you, and your real estate goals? Maybe you plan to buy a home in the next year? Maybe you plan to sell your home?

As of today, financing rates for a mortgage are:

30 Year Fixed - 4.125%

15% Year Fixed - 3.765% 

30 Year Jumbo - 4.125%

These depend on your credit history, downpayment and more... but are sharply higher than the 3.165% (30-year fixed) that we saw two weeks ago. So rates are being driven up. Will it be for long? 

As your Realtor, I wish that I had the ability to look into a crystal ball and foretell the long range implications of a world market on your wallet. Unfortunately, I can't. But I'm here to share what I have, as up to the minute as it can be. 

It might be a good idea to move forward on the purchase or refinance you have been putting off.

Also coming are some changes to the ways in which loans are processed. While not for all banks, many lending institutions are working to simplify and streamline the process on several fronts.

First, employment information will be verified through The Work Number. This not only provides a lender with a confirmed history of employment, but also your income data within hours. Instead of asking for paystubs, a lender will have been given access directly.

Second, deposits will be verified through banking information. At the time of loan application, consumers will be able to grant their lender access to their banking institution for a 'snapshot' of their accounts. This will eliminate the request for bank statements in many cases.

And most importantly, appraisals may be eliminated in some instances where an AVM is performed. AVM stands for Automated Valuation Model, and eliminates the need and the inconsistencies of an appraisal up front. The AVM will pull comps, just like an appraiser, and provide a detailed analysis of your home's value. An appraiser isn't needed, unless there is a question of condition, or the value comes in too low.

This could greatly shorten the timeline needed for Freddie Mac and Fannie Mae loans, and allow a value to be found early in the contract period, which offers protection for both parties and their investment. 

Posted by

DFWAshley, Ashley Cox, Dallas Realtor (972) 978-3109

Search Listings Homes for Sale Dallas, DFW  Sell, List my Home for Sale in Dallas  Get CMA Property Value in Dallas

Ashley Cox is a Realtor® with Dallas City Center Realtors and strives to provide excellent service and assistance to Buyers and Sellers in the Dallas/Fort Worth Metroplex.

Buy | Sell | Rent  - call/txt (972) 978-3109

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Re-Blogged 1 time:

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Topic:
Lending / Financial
Location:
Texas
Groups:
Realtors®
Texas Real Estate
Diary of a Realtor
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Tags:
finance
appraisals
underwriting
mortgage news
freddie mac
rate
mortgage how to
fannie mae
refi
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mortgage
refinance
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Rainmaker
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Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

Ashley, you did a great job of getting this information out to your sphere in a timely fashion. This was a major topic at our office meeting this morning, making the same points you did so well. Inflation is on the horizon, too.

Nov 14, 2016 04:32 AM #1
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MichelleCherie Carr Crowe Just Call...408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

I read this morning from another lender that interest rates already rose .5% in 3 days post-election.

Nov 14, 2016 05:03 AM #2
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Ashley Sharum

Ebby Halliday Realtors
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