Say we are working together to purchase your next home. (Thanks for your confidence in me!) What’s the very first thing you should do in the home buying process? I, like most Realtors, will tell you to get a Pre-Approval letter. You ask me, “Julie, what is that and why do I need one?”. You might say, “I already have a Pre-Certification letter. What’s the difference?”
So, what’s a Pre-Approval letter? Unlike a Pre-Certification letter, the lender will not just take your word for your financial status, the lender will verify the information you provide. Instead of receiving your letter that same day via fax, the lender will confirm your employment, check on the source of Read the rest of this entry »
Spoken by Julie Q. Fuelling |
Mortgage loans are getting harder and harder to get. The reins have just tightened again with the government takeover of the secondary loan market known as Fannie Mae. The failure yesterday, September 29, to pass the massive bailout legislation only adds to this troubling situation in the home lending sector.
Partially Reprinted from Wikipedia
The Federal National Mortgage Association (FNMA) , commonly known as Fannie Mae, is a publicly traded government sponsored enterprise (GSE). It is a stockholder-owned corporation authorized to make loans and loan guarantees.
Fannie Mae is the leading participant in the U.S. secondary mortgage market, which serves to provide liquidity to the primary mortgage market to ensure that mortgage companies, savings and loans, commercial banks, credit unions, and state and local housing finance agencies have enough funds to lend to home buyers.
As of 2008, Fannie Mae and the Federal Home Loan Mortgage Corporation (Freddie Mac) own or guarantee Read the rest of this entry »
Spoken by Julie Q. Fuelling |
I started writing this two-part series pre Hurricane Ike. With yesterday’s mega-bailout of AIG Insurance, it almost seems like old news. All this government intervention will affect the home industry both short-term and long-term.
Considering the complexity of the federal take over of Freddie Mac and Fannie Mae and it’s huge ramifications for Katy home buyers and our economy in general, I am reprinting articles from Wikipedia that explain these events as an understanding is critical.
This is a development that will impact all of us here in Katy, even if we are not buyers or sellers. Today, we will address Freddie Mac and next week I will publish an article on Fannie Mae. I hope these articles help you understand as they were helpful to me.
Reprinted from Wikipedia
“The Federal Home Loan Mortgage Corporation (FHLMC) (NYSE: FRE), commonly known as Read the rest of this entry »
Spoken by Julie Q. Fuelling |
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