Tag Archive: applications

Nov 17

Conventional Mortgage Credit Standards Page Added

Conventional Mortgage Underwriting

Explaining in plain English how the mortgage industry works continues to be an endless project.  The larger the resource becomes the more there is to explain. 

The newest page, Credit Standards for a Conventional Mortgage, made me realize just how big the project has become.  But it is a good exercise, the more I try to explain the easy way for a home buyer to arrange financing the more I see opportunities to streamline the process. 

A little bit of preliminary team work between the home buyer and the loan officer can really speed up the process.

Apr 28

Mortgage Applications Fall

This is interesting; the number of loan applications fell last week by 5.6% according to the Mortgage Bankers Association. The number of applications declined at the same time interest rates improved!!! HAHAHAHA 

Can you hear The Oink Factor? 

I talk about this phenomenon in my book Selling the Invisible House in the chapter about mistakes to avoid.  Loan applications initially slow down as interest rates decrease. Then they speed up as rates start to rise.  How crazy is that? 

You economist types will state this is a matter of supply and demand.  That could explain it except for the fact that interest rates do not react that quickly to demand.  Demand on the other hand turns on and off like a faucet when ever there is a change in the direction of rates.

 Watch, when the rates start to increase there will be a spike in the number of loan applications.