Hi it’s Bruce Woodburn with CrossCountry Mortgage, today is Friday, August, the 28th, and I’m here to tell you about the three big things you need to know. So, if you’re considering buying real estate, selling real estate, if you’re in the real estate business or you are you builder representative these are all things that you should know. They are either an advantage to you or potentially a disadvantage, or just good information that you might want to know, so you can be a better, trusted adviser to your clientele.

1. First thing let’s talk about underwriting turn times. An underwriting turn time is something we think about in our industry that lets us know how long it is going to take to get a loan underwritten. So, it’s not turn time from starting of a loan to finishing. As you know, at CrossCountry Mortgage, I have a 21 day turn time on most of my products. Now some of them I don’t, like down payment assistance, foreign nationals or construction perms because we’re not in control the turn times. However, some of the big companies Loan Depot, Geneva, Caliber, Supreme, Fairway, Atlantic Home Mortgage, big companies, they’re running between 13 and 60 days in underwriting. That’s Right! A client called me yesterday and said Bank of America was up to 60 days in underwriting. That’s ridiculous! So, if you are thinking about using one of these banks, or you have a client that’s using one of these institutions, you could count on extensions to their contract. Now, it doesn’t affect you so much on a refinance. However, on a refinance then you have to lock for a longer period of time, and that’s going to cost you more money. BUT at CrossCountry, my underwriting is generally 48 to 72 hours. Now, obviously we’re experiencing an influx of business like everybody else. But I’m nowhere near a week to two weeks, it’s a much shorter time than that. So be cautious of underwriting turn times, and don’t let the loan officer that’s the broker, tell you one thing to find out later that it’s something else because it’s not always the truth.
2. Second big thing, Fannie Mae and Freddie Mac had announced a week ago Wednesday at 8:24pm to all lenders that they were imposing a half a point increase to the discount points on all refinances. Well, it caused a stir. If you were paying no points it was now costing you half points so it’s an expensive proposition for an overnight announcement with no warning. Well, they just came back and announced that they are pulling back on that, and that they’re going to delay it till December 1st. This is really important for you to know, because if you’re buying or refinancing a home, you’ve got to think about the upcoming election. If lenders are 60 days out from a closing, you’re in big trouble. You’re not going to pay the half a point right now., but interest rates are starting to rise because the stock market’s been rallying, and the bond market has been tanking. So we’re seeing increases in interest rates, a little bit each day. Having said that, the good news is, that they are pulling back on the half a point.
3. Now, that’s a call to action. If you’re considering refinancing a home or purchasing a home, do it today! I’ve been telling you, on my radio show on Saturdays, if you’re going to refinance, do it now, if you’re going to buy, do it now. Interest rates are at all-time lows. So don’t wait because this election is going to drive up interest rates. Now everybody thinks that since it’s an election year interest rates are going to stay low. Well, they’re at the all-time low, they’re not getting any lower right. And if the stock market continues to rally the Fed doesn’t have any control over what your rate is, it’s governed by the bond market. When the stock market rallies, the bond market tanks, and we’ve been losing ground every day on the bond market which is causing interest rates to trickle up. You guys have heard me say this before but I do believe that if Biden gets in office, or if it looks like it’s going to go in his direction, you’re going to see interest rates go up sooner rather than later. If Trump stays in office, they’ll stay low till probably March, and then they have to go up. So they’re going up either way. Again, I think that if Trump stays in office, the stock market is going to continue to rally, but your interest rates are going to suffer come March or April, that’s my prediction. It’s not a political statement, it’s just an observation. I watch all the indicators throughout the day, that tell me what’s going to happen. And that’s never a guarantee here, but this is my prediction. Do it now, do it right now. Apply online at WeBringYouHome.com or if you’re a realtor or builder send your clients to WeBringYouHome.com and let us take care of them and close you pretty quickly to.

Thanks again, have a great day!