George Duarte, Author at George L. Duarte

Approved With Conditions: What Does It Mean? Applying for a home loan might not be the most exciting part of purchasing a home; however, many homeowners need to go through a lender to purchase a home. It is exciting to hear that the approval letter has gone through; however, it is also possible for someone to see that they have been approved with conditions. What does this mean?

What are some of the most common reasons why someone might have conditions?

It Could Just Be Standard Procedure

Sometimes, people see that they have conditions to meet as a simple part of the approval process. For example, someone might be missing standard paperwork. It is the job of the underwriter to make sure that the lender is not taking on too much risk. Usually, this simply means that the loan requires some additional paperwork to be made final. Applicants need to gather this paperwork as fast as possible so the loan continues through the process. If there is a seller waiting, it is critical to jump on this immediately to prevent the offer from falling through.

What Are The Most Common Conditions?

There are several conditions that people might have to meet in order to finalize the loan approval process. For example, some people may need to provide letters of explanation, documenting anything that could be related to questions in the file. In other situations, a large deposit could require a letter of explanation as well. That way, the lender knows that someone has not taken a cash advance or opened another line of credit to cover the down payment. In other situations, proof of employment could also be listed as a condition of approval. Lenders want to make sure that applicants are going to keep their job after they purchase the house. Finally, earnest money proof could also be required. This is simply a copy of the earnest money check itself. It is critical for applicants to provide this paperwork quickly in order to finalize process.

Try To Meet All Requested Conditions As Quickly As Possible

It can be frustrating to see that a loan has been approved with conditions. Fortunately, a lot of these conditions are relatively easy to meet. Homeowners that are requested to provide proof to finalize the application process should try to do this as quickly as possible.

What's Ahead For Mortgage Rates This Week - March 22, 2021 Last week’s economic reports included readings from the National Association of Home Builders on housing markets and Commerce Department data on housing starts and building permits issued. Weekly reports on mortgage rates and jobless claims were also released.

NAHB: Builder Confidence Slips as Materials Costs Rise

The National Association of Home Builders reported that its Housing Market Index fell to an index reading of 82 in March as compared to February’s index reading of 84. Analysts forecasted a reading of 83. Builder concerns included rising materials costs and mortgage rates, which impact home pricing and affordability. Robert Dietz, Chief Economist for NAHB, said that lumber prices have more than doubled since August 2020 and have added $24,000 to the cost of a home on average.

Regionally, builder confidence in housing markets declined in the Midwest, Northeast, and West but remained unchanged in the South.

Demand for new homes remained high as shortages of existing homes for sale persisted. Homebuilder sentiment was unchanged in the South but declined in the Northeast, Midwest, and Western regions of the U.S.

According to Commerce Department reports for February, housing starts declined to 1.42 million starts n a seasonally-adjusted annual basis as compared to January’s reading of 1.58 million housing starts. Building permits issued also reflected growing builder concerns as permits issued fell to 1.68 million permits issued from 1.89 million building permits issued in January.

Mortgage Rates Rise, Jobless Claims Mixed

Freddie Mac reported higher average mortgage rates last week as rates for 30-year fixed-rate mortgages rose by four basis points to 3.09 percent; the average rate for 15-year fixed-rate mortgages rose by two basis points to 2.40 percent. Mortgage rates for 5/1 adjustable rate mortgages averaged 2.79 percent and rose by two basis points.

Discount points averaged 0.70 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

770,000 first-time jobless claims were filed last week as compared to the prior week’s reading of 725,000 new jobless claims filed. Severe winter weather in Texas boosted new claims, which significantly exceeded analysts’ expectations of 700,000 new claims filed.

Continuing jobless claims fell to 4.12 million claims from the prior week’s reading of 4.14 million ongoing claims filed.

What’s Ahead

This week’s scheduled economic reporting includes readings on sales of new and previously-owned homes, inflation and consumer sentiment. Weekly readings on mortgage rates and jobless claims will also be released.

Approved With Conditions: What Does It Mean?

What’s Ahead For Mortgage Rates This Week – March 22, 2021

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