Brad Lynch

The Texas Owelty Refinance Specialist-

The Owelty Refinance is really much more simple than what you may think. More times than not, when I am explaining the pros and cons to a client of mine in Texas about how their refinance in this Owelty transaction works, at the end of the conversation they kind of sigh as if to say, "oh, I was making this more complicated than I needed to". If your mind has perceived an elaborate system/engine/product that you are preparing yourself to buckle down on to have hopes in just grasping a tip of the iceberg on the "ins and outs", do not start off your research thinking that way. It's not that tough.

For more details on the owelty, the remainder of the post that educates you all about the owelty in Tx.

How do I know when to Refinance, says Frisco Home Owner residence.

The very common question that I receive in this hoard of refinances right now is, "what amount of rate reductions is it that makes it more likely I can refinance and it make since?" To really answer that question, and have any hopes of making a relevant fact from it, it has to be answered backwards.

For more details on the, how to prepare for a refinance, and how do I know when it's right.

The no cost refinance works, but compare and tailor your situation against the traditional refinance.

Before the weekend got here, I thought I might get this post out so that the Frisco Mortgage readers could see a clear picture of when the no cost refinance makes since rather than the full cost, whether you are rolling in the cost or paying them out of pocket.

For more details on the no cost refinance versus the traditional or normal refinance rolling in costs

The fact that VA has not instituted a guideline restricting military vets getting a VA home loan, in regards to properties with a short chain of title, does not mean that there are not other variables needing close attention.

As you are aware I am sure, a short chain of title is a sign that could signify a "flip" property, and with flips also come homes that needed lots of tender love and care before they were resold. The underwriter will likely request an inspection on the property to see what things might have been done to get the home back in shape, and if there is mention of foundation work, VA underwriting will likely ask for an engineers report on that foundation. Lastly, they are asking the have the seller pay for a home warranty and requesting that to be shown on the HUD.

For a more extensive explanation of this, check it out here, at my mortgage guy for life website.

USDA lending is back, but not necessarily in full swing...there are some changes. I think that the custom home builders and Realtors in areas such as Prosper, Little Elm, and Celina will benefit as more buyers will have the opportunity to buy with less money out of pocket again.

Check out the details of the changes here.

I was at an open house this weekend in Plano, TX, and we had about 25-30 people come by. In the last two months, I have helped my Realtor friend with these open houses and before now we saw an average of maybe 30-35 people.

An overwhelming ratio of these people coming to open houses claim to be looking and gathering information on homes for their friends moving here. Since I wondered if they were just dodging us thinking we might try to sale them, I inquire a little and find stories that seem to be pretty believable that they are really looking for a house for their friends.

I figured that since rates hit their 2010 low point, the buyers would be out in droves. Since there are so many people house hunting for friend, I thought, why not use "searching for a home for a friend", in some marketing.

I hope you were ready for the changes that the Federal Government had for us in the mortgage industry under RESPA reform effective January 1, 2010? The new version of the Good Faith Estimate or GFE as we speak in the mortgage business (Martian Language), and the HUD-1 HUD 1 settlement statement or 2010 is what I'm speaking more specifically about.

I posted this blog at my Blogspot location, but thought maybe this would be a good one to post here too.

If you are in or have originated your loan before January 1st, you can continue to close the loan after January 1st under the old GFE/Good Faith Estimate, but the title company will close it on the new HUD-1.
What if you are using two loans to buy or refinance your home...like a piggy back and a first for example? You will issue a GFE for both loans and the title company will have two HUD-1's as well. No biggy there.
The Loan Officer AND the borrower will likely benefit from this if used properly. The design of the change is to empower the borrower a little more by "force", to be more accountable in their process of shopping, and in the same, hold the Lender/Loan Officer accountable for their GFE quote in the beginning. In my opinion, the change is a positive for the lender, but that is because I have never bait and switched or mislead intentionally. In the past, I have had a hard time getting through to borrowers that were a little suspect in the entire shopping process as a whole because of the reputation that comes with mortgage. Therefore, my explanation of how to shop, when they were doing it all wrong, was in one ear and out the other. NOW, the honest loan officers in the industry can relax and let the system force the borrower to shop properly.

The lenders and loan officers that have built their business on smoke and mirrors sales tactics with the GFE's and survived on selling rather than consulting will feel haunted now. Here is why. The GFE, the official one governed by RESPA, is not allowed to be issued unless there is a property...this is good because the uneducated shopper (speaking of buyers and not refinance prospects here) would many times spin their wheels shopping lenders before they ever found a home and then months later when they found the home, they would use which ever company they found the months before. That makes no sense, because a lot can change in a week, must less a month or more down the road. Now, when there is a property and a borrower asks for a Good Faith Estimate, that lender is held accountable at closing by the "system" in the new law. The final documents at closing will put the numbers from the GFE side by side with the final numbers on the HUD-1. If these numbers do not match up, or stay within variance by law, the lender is held accountable for the difference. You see where the dishonest loan officer here will not like the new style? I like it, and many of the loan officers in this industry I am friends with like it because now we don't have to worry about "frisbying" out our GFE wondering if some dishonest sales type is our competition where we'll lose a prospect to a lesser deal and lesser loan officer.
Lets get clear on something. There are circumstances in a transaction process that would require rates or fees to change midway through, and the new laws have made room for those and defined the circumstances that will allow a lender to change the settlement variables from the original GFE. Just make sure that you the borrower, or you the loan officer have your client sign the "Change of Circumstance Affidavit" at least 3 days before you want to close the loan...that is part of the new law. If the APR or fees change from the originally disclosed Truth In Lending or Good Faith Estimate (no called the 2010), you will need to redisclose and sign the GFE and Truth In Lending 3 days before close.