As FM Lending Services continues to monitor the government shutdown, we would like to share some frequently asked questions about the impact on mortgage loans. Please contact your mortgage consultant with any questions or concerns about specific loan transactions.
Will the flood certification process be affected?
For the most part, the flood certification process will not be impacted. However if a situation requires additional research, such as mapping issues, the flood certification process will be impacted.
What about loans requiring social security number verification?
The Social Security Administration is now currently fulfilling requests for social security number verifications.
Will the IRS process tax transcript requests?
The IRS started to process transcript requests as of January 8th. However, the IRS will require an undetermined amount of time to return to normal service levels.
What is the impact on USDA loans?
USDA is unable to issue new commitments or guarantee closed loans. Effective December 15, 2018, USDA loans require tax transcripts. USDA loans cannot close without full tax transcripts for all adult household members.
How are government employees affected regarding employment verification?
If a borrower works at an agency that does not use a third-party verification resource, then employment verification cannot be completed. Loans cannot close without a 10-day verbal verification of employment (VVOE).
How are FHA, USDA & VA questions escalated?
Government agencies will have limited staff available to answer questions or correspondence. We always intend to answer questions in a timely manner; however, we may be delayed in responding while we wait for clarification from the government agency.
Contact your local mortgage consultant to discuss any financing questions.
This list is of frequently asked questions is only to be used as a guide and is not all-inclusive. Please contact your mortgage consultant for any questions related to specific loan transactions.
All first mortgage products are provided by Prosperity Home Mortgage, LLC dba FM Lending Sevices. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance. Licensed by the Delaware State Bank Commissioner. Also licensed in District of Columbia, Florida, Georgia, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.
NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)
©2019 Prosperity Home Mortgage, LLC dba FM Lending Sevices. All Rights Reserved.
Whether you’re buying or selling a home, understanding the role of an appraisal in the home buying process is important. An appraisal can have a significant impact on your real estate transaction, so here are some common questions about the process:
What is a property appraisal?
A property appraisal is a professional assessment of a home’s value conducted by a licensed appraiser.
What does an appraiser do?
An appraiser evaluates a home’s value by considering various factors such as the home’s features and location, current housing market conditions, and comparison to the sale of similar homes in the area.
How do appraisers provide an unbiased assessment of a home’s value?
An appraiser is a licensed, independent service provider who has no affiliation with a home’s buyer or seller. Appraisers are paid a flat fee for their service rather than a commission so they are unprejudiced when determining a home’s fair market value. There are also federal laws that require the appraiser to be unbiased in the performance of the appraisal.
When does an appraisal take place?
Once a buyer and seller both sign a purchase agreement for a home, the buyer can complete their loan application and continue with the home financing process. During that time, the buyer’s mortgage lender will order the home’s appraisal. An appraiser is assigned to assess the home’s value and will submit an appraisal report back to the lender once the appraisal is complete.
What if the appraisal of a home’s value is lower than expected?
If a home’s value is determined to be different than the contract price, and the buyer feels that the estimate is inaccurate, then the buyer may authorize an appraisal reconsideration process. The buyer, real estate agent or lender may ask an appraiser to:
- consider additional, appropriate property information,
- provide further detail, substantiation or explanation for the appraiser’s value conclusion, and/or
- correct any errors within the appraisal report.
What can be included in the appraisal reconsideration?
To reexamine a home’s value, appraisers may consider:
- a list of major home improvements or upgrades completed after the original appraisal, such as renovations, landscaping, or replacement of major systems or utilities.
- a copy of the plat or site plan showing unique or contextual characteristics such as a lot’s size compared to those around it, a desirable view, or even a quiet property away from busy areas.
- overlooked sales and listings that were used to help determine the home’s price.
- elements of the appraisal’s comparable properties that were reported incorrectly.
- the home’s specific circumstances, such as multiple offers, special concessions, or repairs outlined in the contract that would raise the home’s value.
More questions about property appraisals?
Your mortgage consultant or real estate professional will be happy to speak with you directly to help make sure you understand the entire process.
This list is only to be used as a guide and is not all-inclusive.
All first mortgage products are provided by Prosperity Home Mortgage, LLC dba FM Lending Services. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance. Licensed by the Delaware State Bank Commissioner. Also licensed in District of Columbia, Florida, Georgia, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.
NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)
©2018 Prosperity Home Mortgage, LLC dba FM Lending Services. All Rights Reserved.
Want to help your home financing process go more smoothly? Once you've received a home loan approval, simply understanding issues that can impact the financing process is important. The following topics address potential challenges that may delay your closing date or even impact your ability to obtain a mortgage.
Follow these tips for a smoother financing process:1
DON’T hesitate to inform your mortgage consultant before making changes to your employment.
DON’T stop making payments on existing accounts.
DON’T make major purchases with credit, co-sign another loan, or max out existing credit cards.
DON’T assume closing existing lines of credit or paying off collections or charge-offs will improve your credit score.
DON’T deplete savings to pay off credit debts.
DON’T make large deposits into your bank account(s).
DON’T change bank accounts or transfer funds within existing accounts.
DON’T hesitate to contact your mortgage consultant if you are concerned something will impact your loan.
Individual circumstances will vary. Any one of the above mentioned activities may or may not impact the financing process. Questions? Contact a mortgage consultant near you to discuss the details about your individual situation.
1. This list is only to be used as a guide and is not all-inclusive. Should events arise requiring changes to your credit, income or assets, your mortgage consultant can discuss how these changes may affect your loan application process. Prosperity Home Mortgage, LLC dba FM Lending Services is not a credit counselor. Information displayed is not credit advice and should not be relied upon or interpreted as such.
All first mortgage products are provided by Prosperity Home Mortgage, LLC dba FM Lending Services. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance. Licensed by the Delaware State Bank Commissioner. Also licensed in District of Columbia, Florida, Georgia, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina,Tennessee, Virginia, and West Virginia.
NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)
©2018 Prosperity Home Mortgage, LLC dba FM Lending Services. All Rights Reserved.
FHFA Announces Higher Loan Limits for 2019
As the result of a higher average U.S. home price in 2018, the Federal Housing Finance Agency (FHFA) has announced new, higher maximum conforming loan limits for 2019.
In most areas of the country, the 2019 maximum loan amount for one-unit properties will be $484,350, an increase from $453,100 in 2018. In high-cost areas, the new maximum high balance loan limit will be $726,525, up from $679,650. This is a 7% increase over the prior year.
As a special offer to our clients, FM Lending Services can close loans using the 2019 limits beginning December 10, 2018.
Loan limits may vary by county. Click here for a list and map of the 2019 maximum loan limits for all counties and county-equivalent areas in the U.S.
New Conforming Loan Limit Sample:
|
2019 Conforming Loan Limit |
Maximum Sales Price |
Down Payment Amount |
|
$484,350 |
$499,329 |
3% |
|
$484,350 |
$605,437 |
20% |
New High Balance Loan Limit Sample:
|
2019 High Balance Loan Limit |
Maximum Sales Price |
Down Payment Amount |
|
$726,525 |
$764,763 |
5% |
|
$726,525 |
$908,156 |
20% |
Contact your mortgage consultant directly if you have questions on local limits or other home financing options.
All first mortgage products are provided by Prosperity Home Mortgage, LLC dba FM Lending Services. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance. Licensed by the Delaware State Bank Commissioner. Also licensed in District of Columbia, Florida, Georgia, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.
NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)
©2018 Prosperity Home Mortgage, LLC dba FM Lending Services. All Rights Reserved.
We understand the option to rent or buy a home depends on your unique situation, and your decision requires careful consideration. While renting may make more sense for some, buying a home can be less expensive on average than renting long-term.¹
When deciding which option is right for you, we recommend asking some basic questions:
- Is it important that your home can be used as an investment?
- How long do you plan to stay in your home?
- How fast do rent and home prices rise in your area?
Buying may be the right option if you:
- Want the opportunity to build equity in your home as a long-term investment and take advantage of homeowner tax credits and incentives.
- Are planning to stay in your home long-term (typically 4 years or more).
- Would like to create a home that is unique to your own style.
- Are experiencing rising rent payments.
Renting may be the right option if you:
- Prefer a monthly budget that does not include costs for home maintenance or improvements.
- Plan to move again within the next few years (typically less than 4 years)
- Enjoy the amenities that are often available within rental communities.
- Have financial obstacles or credit issues that may preclude homeownership.
Buying or renting can be different for everyone based on your individual situation. Contact a local mortgage consultant to answer any questions you may have about buying a home!
BY THE NUMBERS:
Rent vs. Buy calculations often differ by real estate market. Use our rent vs. buy calculator tool to help you decide if renting or buying is right for you!
1. Contact a mortgage consultant to compare the cost of renting versus buying to determine the right option for you.
All first mortgage products are provided by Prosperity Home Mortgage, LLC dba FM Lending Services. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance. Licensed by the Delaware State Bank Commissioner. Also licensed in District of Columbia, Florida, Georgia, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.
NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)
©2018 Prosperity Home Mortgage, LLC dba FM Lending Services. All Rights Reserved.
