Lifestyle real estate newsletter | april 2020
Covid-19 and a Mortgage Lending update There is much volatility in the mortgage industry due to high volumes, liquidity concerns and fluctuating interest rates. If you want a detailed explanation, Barry Habib of MBS Highway is a great resource and recently put out an easy to understand video on Facebook to explain. From a lender to you as a buyer or seller, here’s what you need to know and can do in regards to the mortgage changes:
Expect longer closing times
• Appraisal turn times are longer than usual • Many processes are taking longer because third parties are closed or running at limited capacity (For example, IRS, Title & Escrow, and employment verification) • Provides us time to lock rate on a good day
Get an updated preapproval letter before making an offer With changes happening every day, it is imperative to check with your lender to confirm qualification and program status
On the selling side, ask questions and be aware
• Are the buyers still working/getting paid by their employer? • Is the buyer’s credit score higher than 640? • Has the rate been locked?
Appraisal Changes
• Conv, FHA, USDA, VA are all now allowing desktop or exterior-only appraisals, but only in cases with specific covid-19 concerns • The cost is the same • Turn times are not quicker for desktop/exterior appraisals
Inspection Changes
WSHFC/DPA is the only program that requires an inspection. They are only waiving it for specific covid-19 concerns
Employment Concerns
A buyer must be employed and receiving pay to fund. We must be able to verify this a few days before closing to fund.
Loan Program Changes
All investors, and thus programs, are tightening their guidelines: • Options for buyers with less than 640 credit score are extremely limited
• Rehab loans are suspended • Escrow hold backs are suspended • Bridge loans are suspended • Most specialty & jumbo programs are suspended
Mortgage Relief
To qualify for any type of mortgage relief from a loan servicer, there are several factors involved (who owns the loan, who services the loan, type of loan, and how they are affected by covid-19)If a client is looking for relief, they need to call their servicer • Forbearance is not forgiveness. Everything will still need to paid at a certain time • Loan modifications may open clients up to later being forced into a higher interest rate and payment • Loan modifications will keep clients from refinancing for at least a year
What Lenders are doing to protect you • Staying proactive with market & guidelines changes • Fast tracking e-closing process (signing virtually with a notary)
N I N A B J O R N S TA L 206.730.0962 | Cell or Text nina@ninabjornstal.com | E https://realestatenina.com | W
15117 Main Street B106 | Mill Creek WA 98012
• Selling direct to agencies and relying less on volatile investors • Protecting our liquidity & health, so we can weather this storm just like we did in 2008 even though this is not the same situation • Partnering with you with full transparency!
N I N A B J O R N S TA L 15117 Main Street B106 Mill Creek WA 98012
Why are all of these changes happening?
In the mortgage industry, many companies and investors work with a high level of liquidity. Hence why many banks and companies stopped taking refinance applications. With the flood of refinances, and the concerns of people not making their mortgage, investors are bleeding money at every level.
Reminder: These changes are temporary! If you have any questions or would like to discuss something further, please reach out to me and my lending team. We are here to help you. You can always reach me at 206.730.0962. Stay healthy and positive!
Article compliments of Rosa Briggs at Capstone Home Loans. Her contact information is 425-268-0245 and email at teamrosa@ capstonehomeloans.com
Market watch update | see the market trending in your county february 2020
march 2020
King County
Median sale price: $615,000 h Average sale price: $746,119 h List to sale price: 100% Months of Inventory: 2 i Avg Days on Market: 34
King County
Median sale price: $619,000 h Average sale price: $748,723 h List to sale price: 99.9% i Months of Inventory: 2 Avg Days on Market: 33 i
Snohomish County
Snohomish County
Pierce County
Pierce County
Median sale price: $470,000 h Average sale price; $506,266 h List to sale price: 100% Months of Inventory: 1.8 Avg Days on Market: 32 Median sale price: $363,000 h Average sale price: $396,424h List to sale price: 100% Months of Inventory: 1.8 Avg Days on Market: 33 i
Median sale price: $472,500 h Average sale price; $509,166 h List to sale price: 100% Months of Inventory: 1.7 i Avg Days on Market: 31 i Median sale price: $365,000 h Average sale price: $398,636h List to sale price: 100% Months of Inventory: 1.8 Avg Days on Market: 32 i
I am currently taking on new clients.
The most sincere compliments I receive are the personal referrals from you. Thank you so much! Remember how much fun we had finding your home? I’d love to help them create that memory too.
N I N A B J O R N S TA L 206.730.0962 | Cell or Text nina@ninabjornstal.com
If your home is currently listed this is not a solicitation for your listing, please disregard this mailer. | 20 20 Lifestyle real estate by nina