Monday Mortgage Minute with Tom Heath of NOVA Home Loans – July 6
Good morning. Welcome to the second half of 2020. It’s July 6. My name is Tom Heath with the Heath Team at Nova Home Loans. And this is our weekly update with news and tips to help your clients have a better home buying experience.
We know the market is hot. We know that there are multiple offers, some going above asking price and as always cash is king, but when interest rates are as low as they are right now people are hesitant to want to pay cash for a home when they can get such low interest rates on their loans.
So we do have a program called Delayed Financing. In essence, it’s a cash-out refinance, but the benefit here is that if a home is paid in cash, no loan – paid in cash, we can do a Cash out refinance within six months. Normally have to wait six months, but we can waive that under these circumstances. So in other words, someone pays cash for the home and we turn around a few weeks later and do a refinance to get them a portion of that cash back. Works very similar to a purchase at the end of the day.
The benefit of this, obviously, is making the clients offer a little bit more competitive but there are certainly some restrictions and some fine print with that. So make sure you have a good conversation with your lender before your buyer gets into that situation.
Also forbearance language is popping up more frequently on credit reports. So even now more than ever it’s important that your clients, even if they know they’re well-qualified go to that lender and get that pre-qualification. Let’s take a look at that great credit report and make sure there’s nothing unexpected on there because sometimes the borrower’s are not aware that they’ve entered into a forbearance agreement with their current mortgage. It could be they called in and asked questions in the service or just made an assumption and put them on there. It could have been an error but we are seeing a lot of forbearance issues pop up on credit reports. So one reason: Get this out of the way early because it will create delays and if we can address it soon it’ll be better down the road.
My name is Tom Heath with the Heath Team at Nova Home Loans. As always. If you’ve got questions reach out to us and our and our website https://www.TheHeathTeam.com
for information about what’s going on in the market and some tools that we have to help you with your marketing. Have a great week!