"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.