COVID-19 Mortgage Update
Considering how many coronavirus emails everyone is receiving these days, we will get right to the point. If your’re looking for information on how COVID-19 will affect your mortgage, here’s what we and our lending partners are doing to make things as easy as possible.
COVID-19 Mortgage Update
This list will grow, I am sure, as we get more guidance from Fannie Mae, Freddie Mac, FHA, VA, our investors, and all the other partners we work with daily.
- There are rules now in place allowing us to forego an interior appraisal inspection in certain circumstances. Appraisers will be allowed to do an exterior inspection, saving everyone the problems associated with a stranger coming into your house. This does not apply in all cases, so please be sure to ask us if you have any questions.
- If you are having trouble paying your mortgage because of financial hardship related to the coronavirus, you may be able to get up to a year without paying your mortgage, and the missed payments will not show on your credit report. Contrary to what you may have heard from other sources, this does NOT apply to every loan. If you have questions, you should call your servicing lender BEFORE you miss a payment. Your servicing lender is the lender you pay each month. If you miss a payment and then ask, it will be too late. You MUST get this agreement in place before you miss a payment.
- We are offering 21-day rate lock extensions at no cost, if a closing is delayed because of the coronavirus. Lock extensions are very expensive, so this has the potential to save you hundreds of dollars.
- The interest rates for purchase transactions are very low at the moment, but they are not low at all for refinance transactions. This is primarily related to capacity issues (too many loans, not enough loan processors and underwriters) and financial liquidity issues because of all the economic uncertainty (no one wants to buy the mortgage bonds that supply the money for mortgages). To make sure that our clients who want to refinance will not miss out on the low rates when they drop, we have a rate watch program that allows us to lock the rate when it drops to where you want it to be.
Contact Us Today
This is a difficult time in the world and a difficult time in the lending industry, but we have a good plan in place to ensure that if we are your lender, you will be taken care of. Selling mortgages is all we do, so contact us today if you need to refinance, if you need a pre-approval to buy a house, or if you have any questions at all related to mortgages or credit.