Sarasota Mortgage Rates | The Mortgage Skinny

How to Read Your Mortgage Documents

Every day you read another horror story about the subprime collapse. Most of the stories focus on the negative impact Adjustable Rate Mortgages (ARMs) will have on subprime borrowers once their interest rates reset. But what’s often unreported in these news pieces is the fact that the risk extends far beyond subprime borrowers. That’s right. Anyone with any ARM that is scheduled to reset may be faced with an interest rate increase of up to 2.00%-3.00%, even A-paper borrowers.

This article is not designed to scare you or add to the flood of media hype on this topic. To the contrary, our goal with this interactive article is to empower ARMs consumers with the knowledge they need to avoid becoming one of the millions of borrowers expected to foreclose in the coming years. Read the rest of this entry »

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The real estate market typically heats up during the summer months. This year, however, with the subprime correction in full swing, the National Association of REALTORS® is predicting a slight pullback in speculative buyers that could lead to a downshift in the entire real estate market.

For a lot of homeowners, this just means home prices are normalizing after an amazing run up over the last few years. However, for many Adjustable Rate Mortgage (ARM) holders and borrowers with potential credit issues, this summer cool off could spell disaster. Read the rest of this entry »

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Ever wanted a step by step process of a purchase loan? Here it goes… 

1. Pre-qualification – Lenders are encouraging buyers to get pre-qualified for a mortgage even before they begin looking for a house. This way, buyers know ahead of time how much house they can afford.
2. Loan Search – Although buyers often use a lender recommended by their Real Estate agent, some prefer to do their own comparisons. Borrowers may choose to contact a mortgage broker who has access to a wide variety of loans.
3. The Hunt - At this point, the buyer begins shopping for a house. When the right one is found, the terms of the sale are negotiated, including the sale price and often the type and conditions of the loan being sought.
4. Loan Application - It’s crucial to supply the lender with as much information as possible, as accurately as possible. All outstanding debts as well as assets and income should be included.
5. Documentation - Paperwork supporting the application must also be submitted. Information commonly sought includes pay stubs, two years’ tax returns, and account statements verifying the source of the down payment, funds to close and reserves.

6. Appraisal - Lenders require an appraisal on all home sales. This step could jeopardize a deal if a big discrepancy were to exist between the home’s sale price and appraised value.
7. Title Search - This is the time when any liens against the property are discovered. A lien may have been placed on a property to ensure payment of outstanding debts by the owner. All liens must be cleared before a transaction can be completed.

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In the teeth of the worst mortgage crisis in decades, Sarasota mortgage bankers Priscilla Gratton and her twin sons, Brock and Blake, known as “Team Gratton,” have left AmSouth Mortgage, now known as Regions Mortgage, after only a half year and opened their own mortgage origination business at 741 S. Orange Ave.

The Grattons bring a combined 30 years of mortgage experience in the Sarasota market, with expertise in offering a complete range of mortgage products, including no-income, investment, extended rate locks, construction, alternative credit, and commercial lines.

“We are extremely excited to be able to provide our clients a full line of programs. In today’s market, you just can’t afford to limit yourself on your product line,” said Priscilla Gratton, adding that AmSouth’s “very conservative” approach to mortgage lending contributed to her team’s departure.

The Grattons said they can tap 200 lenders.

“Although many subprime lenders are cutting back programs, we believe we can still access mortgages for most borrowers,” Priscilla Gratton said. Read the rest of this entry »

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Purchasing a home has many legal ramifications. You will need to consider how you will “hold title” to the property. This is such an important decision that you should consult with an attorney or accountant for advice as you make the choice. Because it is so crucial to the ensuing decisions, this determination should be made early in the mortgage process. Here is an overview (not to be taken as a legal description) to help you understand the possibilities available to you:

Sole Ownership
Sole ownership means holding title alone, as a single person. Even a married or divorced spouse may hold title as a sole owner. However, a spouse would formally give up any legal rights to the property. At the death of a sole owner, the distribution of the property is handled through the probate court, often a lengthy process (9-12 months).

Living Trust
Living trusts have several advantages. They are created while you are still alive, designated as revocable or irrevocable. Even though you transfer ownership of your property to the trust, in the case of a revocable trust, the trustee may buy, sell or finance assets. You, the trustor, create the trust for the beneficiaries, Read the rest of this entry »

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Here’s a quick excerpt that I found to be interesting. It always amazes me with the infinite amount of variables that affect the market and economy. Weakening factory orders may lead to lower rates. Lets take a closer and in depth look at this…

 Factory orders data is a monthly report released by the US Census Bureau. The realease is officially referred to as The Advance Report on Durable Goods Manufacturers’ Shipments, Inventories, and Orders.

The manufacturing sector is a major component of the economy. Investors use the factory orders report to attempt to determine the direction of the economy in the future. Orders are generally believed to be a precursor to activity in the manufacturing sector because manufacturing typically has an order before considering an increase in production. Conversely, a decrease in orders eventually causes production to scale back; otherwise, the manufacturer accumulates inventories, which must be financed.

The stock market typically likes to see strong factory orders data indicating a surge in future production. On the other hand, bonds typically like weaker figures.

Despite some positive spots in the US economy, manufacturing continues to struggle. If the factory orders data shows a significant increase, stocks may rise on the data. This scenario is likely to pressure mortgage interest rates higher. However, a factory orders report showing continued weakness may help to push mortgage interest rates lower.

The next report for Factory Orders comes out on Wednesday, April 4th, 10:00am. Be sure to use the knowledge provided above to determine what the economy and interest rates are doing. Come back again for another weekly report on the economy. Also be sure to take a look at the employment report coming out on Friday as this will be the most important release nest week. If you see an increase in unemploymnet or a large decrease in payrolls you might be seeing lower rates!

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