Did you know that a low interest rate can save you as much or more than a low purchase price? With a 30-year fixed rate, each quarter per cent reduction in interest rate per $100,000 makes a difference of about $15/mo in your payment. For a loan of $300,000 this is a savings of about $135/mo or $1,620/year to the borrower. The longer you own the property, the more the savings can add up and give you savings that can exceed the original savings of a low purchase price! Read the rest of this entry »

Hilton Head home loans follow Fannie Mae guidelines and the guildelines of private mortgage insurance companies.  These guidelines are being revised almost every week because of increased foreclosure rates and late mortgage payments.  Moreover, new regulations in the recently passed Housing and Recovery Act of 2008 and new restrictions by the Federal Reserve are forcing Hilton Head mortgage lenders to become more stringent in their underwriting process going forward.  

Hilton Head Lenders Now Require 

• Higher credit scores and bigger down payments.
•  Documentation of income and ability to repay the loan. 
• Heavy limitations on easy to get stated income or “no doc” loans.  Self employed borrowers are reluctant historically to document all of their income and are cerrtain to be affected by this requirement. 

More Changes Are Coming 

• Beginning in October of 2009, escrow accounts for taxes and insurance will be required on all mortgage loans. 
• Loans with negative amortization are being eliminated.. 
• Loans with pre-payment penalties will be restricted.

Your Advantage Now

 

• You may still buy a Hilton Head area property with 5% down. In the future at least 10% down may be required. Regardless, this is still affordable for most borrowers.
• Mortgage rates are predicted to trend upward long term.  In the near future, you will get a better rate than if you wait. 

 Prequalify Again and Be Current   Some borrowers are shopping for Hilton Head homes wtih outdated pre-qualification letters.  It is important that when you shop for a home that your pre-qualification is accurate by current guidelines.  Please take a few minutes with your lender before you go home shopping to make sure that your pre-qualification is current.  Those few minutes may save you and your real estate agent time and help you to avoid any unwelcome surprises with your lender when you buy.         

We have excellent loan programs and plenty of money to lend to qualified buyers.  There’s no obligation when you contact me to discuss your needs and our programs so use my direct phone number, below at any time.  It’s a good time for bargains.  I hope that we can finance one for you soon!

 

 Patrick S. Child, Vice President

  Residential Lending, Wachovia Mortgage

 Hilton Head Island, South Carolina

 (843) 686-9342

  E-mail: Pat.Child@Wachovia.com

 

 

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