The Weekly Wrap Up - The Not So Scary News!

Solid domestic consumer demand helped 3rd quarter GDP estimates to increase 1.5%. Strong economic news can lead to higher rates.

As expected, the Fed did not raise policy rates at this month's FOMC meeting. However, the statement contained language making a hike in December possible.

The four-week average for jobless claims is the lowest since 1973. A strong labor market helps strengthen the economy and could lead to higher rates.

Boo-B-Que by the Sea!

Friday Oct. 30th - Saturday Oct. 31
39415 Inlet Road
Delaware Seashore State Park
Rehoboth Beach, DE

This is a family oriented two day event that will include live music entertainment, craft, food and beverage vendors, rides and games, and more!  There will also be several competitions including Halloween decor competition, a costume contest, a wing competition, and of course, a youth and adult BBQ competition.  In state cost to get into the park is $5, out of state is $10.  Those with a seasonal state park pass are free!  Enjoy a great time and great food! Read more about the event here.

Have a fun and safe Halloween everyone! It looks like the weather here in Delaware, Maryland, and Pennsylvania will be perfect trick or treating weather and other Halloween events!

New home sales fell in September after two straight months of gains. However, the drop is seen as temporary, and demand for housing remains strong.

In fact, the homeownership rate rose between July and September, the first rise after 7 quarterly declines. Buyers under 35 years old had the highest increase.

First time homebuyers are depending less on gift funds for down payments. More young buyers are using personal savings for down payments and closing costs.

Mortgage Guideline Application - Planning Ahead for the Perfect Mortgage Application

When looking for a home, preparing in advance will save you time and trouble once you've started making offers.  When the time comes for a mortgage application we send our clients a Needs List.  This list requests all the documentation that we need.  It is good to know ahead of time what documents we need and why, to help make the process smoother for the  borrower.  I have put together a general list documents that we request from our borrowers. Hopefully this will help prepare you to plan ahead for the perfect mortgage application.

Income

• Provide your last two paystubs with your W2s and Federal tax returns for the last two years (include all schedules).  State returns are not needed.  If you are self-employed, ask me for the additional documentation requirements.  If you receive bonus or commissions or have changed your job or position, let's talk.

Assets

• Combine all the funds needed to close into one account at least two months prior to your application.  Be sure to document any other deposits here as each could be scrutinized.

Your Statements

• Save all pages of your asset statements, even if some are blank or are just advertisements.

Deposits

• Make copies of checks and deposit slips to prove they are not borrowed money.  Deposit checks individually.  Don't deposit cash without clear proof of the source.

Liquidation

• If you are going to sell stocks, bonds, investments, or borrow against a retirement account, do it now.  Cashing out now may cost your a few dollars in additional gains, but it also protects against losses.

Current Housing

• If you own and are selling, provide a copy of the HUD-1 settlement statement.
• If you own and are not selling, you'll need to qualify for both homes or meet the requirements for renting the current.
• If you are renting, show 12 months of canceled checks, demonstrating timely payments and/or written verification from your management company.  Ideally, pay your rent on the same day each month or prior to its due date.
• If you live with family, you may need a letter stating that you live rent-free.  

Credit

• Check your credit report at www.annualcreditreport.com.  Identify any erroneous info now and consult with us for the correct action to take.  If you co-signed a loan or are being reimbursed for a loan that's in your name, you'll need at least 6 months of checks to exclude it.  Avoid new credit or inquiries.  These can lower your score and increase your rate.

Employment Stability

• Ideally, you;ll have two years or more with your current employer.  Consult with us before changing employers, position or method of compensation.  For example, don't switch from salary to commissions.

Help in Advance

• I'm here to help you now, too, not just once you've found a home.  Contact me with your questions.

The Weekly Wrap Up - Annual Sea Witch & Fiddler's Festival

The European Central Bank left rates unchanged, hoping to fuel more economic growth overseas. Global economic weakness has helped keep mortgage rates low.

Unemployment claims were up slightly but still remain at healthy levels. Signs of a strong labor market could help the Fed decide to raise policy rates this year.

The Fed votes on rate policy next week. Despite the labor market, other economic predictions suggest policy may remain unchanged until December or later.

The 26th Annual Sea Witch Halloween & Fiddler's Festival
at Rehoboth Beach and Dewey Beach

Come Enjoy the fun Friday Oct. 23rd - Sunday Oct. 25th 10:00 am - 8:00 pm  daily!

There is no admission fee although some activities may have a small fee.  Activities include a 5K/10K, a costume parade, pony rides, 50/50 raffles, sea witch hunt, fiddler's festival, live music, pumpkin seed spitting contests, and much much more! Fun for the whole family or a day out with friends in the Rehoboth and Dewey beach resort areas!  For 26 years this festival has been bringing people in Delaware, Maryland, and Pennsylvania a lot of fun and excitement! Be sure to check out more details here.

More homeowners are renovating their homes, with renovations running 2.8% higher than 2005 levels. Renovating is more popular now due to tight inventory.

Building permits were down slightly, but new housing starts were up 6.5% in September. New home construction may help resolve tight inventory concerns.

Builders are more optimistic about the housing market than they have been in 10 years. The NAHB homebuilders index rose to 64, 10 points higher year-over-year.

The Weekly Wrap Up - Blackbird Fall Festival

Producer prices recorded their largest decline in eight months, possibly a sign the economy is losing momentum. This raises doubts about a Fed policy rate hike.

Consumer prices dropped in September on cheap gasoline, but prices of other goods increased. Inflation remains low, which is supportive of lower rates.

Conversely, jobless claims were at a 42-year low this week. However, wage growth continues to be a problem, another factor that could support lower rates.

Looking for an afternoon of free family friendly fun?

the Blackbird Creek Fall Festival may be your best bet!
Located at 801 Blackbird Landing Road
Townsend, DE 19734

Saturday 10 a.m. - 4 p.m.
Enjoy face painting, unique vendors, canoeing or kayaking, arts and crafts, a hiking trail, lively music, and much much more!  There will be vendors there selling food and plenty of space for you and your party to have a picnic!  Help keep this tradition alive! The Blackbird Creek Fall Festival started in 2007 and has been providing the community in Delaware, Maryland, and Pennsylvania with a day of fun and learning since!  For more information, click here.

Last week saw mortgage applications spike ahead of implementation of TRID regulations. This week saw purchase mortgage applications fall by 34%.

More inventory may soon be hitting the housing market. Bank repossessions of foreclosures jumped 66% year-over-year in the third quarter.

A recent index shows residential property values increased 5.5% year-over-year in August. Many markets still have room to rise before reaching 2006 peak levels.

The Weekly Wrap Up - Keep Calm and Get Your Scare On

The Labor Market Conditions Index for September was 0, signaling a weakening market. This could help keep rates low.

Low inflation and global economic weakness, both good for rates, are a concern to the Fed. Many economists think the Fed won't raise policy rates until 2016.

Weak jobs data last week points to a cooling off of the U.S. economy. While more data is needed to support this speculation, it could be helpful for rates.

Keep Calm and Get Your Scare On!

Over the years thousands in Delaware, Maryland, and Pennsylvania have had a scare at Frightland!! Fridghtland is open every year from late September through early November.  From now until the end of the season, the ticket booth opens at 6 pm each night and closes at 9pm.  The exceptions to the hours are Saturdays 10/10, 10/17, and 10/24, those nights the ticket booth will remain open until 10 pm.  There are 8 haunted attractions, including a Hayride and carnival attractions.  Go enjoy Halloween fun with your friends and family at Frightland, 309 Port Penn Road, Middletown, Delaware 19709.  For more information click here for their official website!

A reported survey of property managers found rents increasing by up to 8% in the next year. Primary reasons cited were increased demand and low inventory.

Mortgage applications jumped by 25% last week. The unusually large movement is being attributed to low rates and the rollout of new TRID regulations.

Per Fannie Mae's latest survey, consumer confidence in both home buying and selling increased. Of those surveyed, 64% say it is a good time to buy a home.

Mortgage Guideline Tip - Big New Changes in the Industry

The mortgage industry is going through a lot of dramatic changes that affect the mortgage process.

The government has created stricter rules regarding documentation.  As a buyer, it is important that you are educated about these changes and know what to expect.  If you are not a first time buyer, this is going to be a different experience for you than it was during your previous mortgage process.  These changes became effective for all new loans across the mortgage industry on or after 10/3/2015.  You may hear these changes being referred to as 'TRID'.

One thing that has not changed is the pre-approval process.  It is still a very important first step that should take place first in your home search.  We can still offer mortgage approvals for 'to be determined' dates and locations.  Though once you find a home and are under contract these steps will have to be followed in the following order.

1. Submit your application
• To have an application the lender has to have received six pieces of information from the borrower.  The six pieces of information are name, income, social security number, loan amount, estimate of property value, property address.
  
2. Give Your "Intent to Proceed"
• Once the Lender has your application, the lender has 3 business days to send you a full set of government regulated loan disclosures which will include the Loan Estimate (LE), which is the primary disclosure. 
• As soon as you receive these disclosures, it is extremely important that you give your "Intent to Proceed" and send the signed disclosures back to your Lender right away.  Using e-signature can expedite this process drastically.  The lender needs the "Intent to Proceed" because only then can the following be done:
• Collect Appraisal Fee
• Order Appraisal
• Order Title
• Collect loan documents
  
3. Submit Requested Documents
• The LE will list all of the primary documentation needed for the loan application.   It is necessary for you to get all of the requested documentation to your lender right away.
• If you do not turn in all requested items within 1 week of the application, there will definitely be delays in the process.  
• The lender is going to be moving your file through a series of steps to move along the process.  Your file cannot be moved forward if your documentation is not complete.
  
  
4. Confirm Receipt of the Closing Disclosure
   
• One of the biggest changes is the Closing Disclosure (CD) which is replacing the final Settlement Statement.  The Closing Disclosure (CD), has to be prepared three days before closing.  The Lender will prepare the CD and email it to you.  It is critical that you confirm that you have received it right away.  
• Once the lender gets confirmation you have received it, the closing can take place 3 business days after (Saturday counts as a business day).  There is no exception to the new 3 day rule.  This means that your loan must be approved with no conditions one week prior to closing.  This is why the lender needs everything as soon as possible.

Please do not hesitate to ask us any questions regarding TRID and the new process.  We are prepared and will continue to help prepare you!