JVM Lending Blog

Rates Off a Bit; Buyers Need to “Behave” During Escrows; Last Minute Checks

30 Year Fixed Rate Mortgage at a Cost of One Point: 4.5%*

Rates edged up slightly Friday afternoon, as the stock market came back somewhat and investors pulled money from the bond market.

Buyers need to be aware that almost all lenders do last-minute “employment verifications” on the day of funding (the day before closing). We have had several escrows this year with borrowers who either were going on maternity leave (with no pay), or they were losing their jobs altogether. In all cases, the buyers thought they were OK b/c they had supplied current income documentation and their loans were formally approved. Buyers have to be employed and earning pay on the day of closing.

Last minute Credit Reports: Lenders are also going to start requiring updated credit reports on the day of funding. This too is important to remember, as many buyers finance appliances and other items once their loan is approved. This used to be OK; up until now, our lenders never required an updated credit report if the report in the file was “current” (under 30 to 60 days old, depending on the lender).


*The above rate quote has the following assumptions: $400,000 Loan Amount; 20% down payment; credit score above 740; property is SFR; borrower has sufficient income to qualify; APR is approximately 0.20% higher than quoted rate for a $400,000 loan. Estimated closing costs affecting the APR include $4,595 for Origination and Processing Fees, $850 for other Lender Fees; $1,400 for Escrow Fees, and $1,000 for Prepaid Interest.

Call Jay Voorhees or Heejin Kim at (925) 855-4491

*The above rate quote has the following assumptions: $400,000 Loan Amount; 20% down payment; credit score above 740; property is SFR; borrower has sufficient income to qualify; APR is approximately 0.20% higher than quoted rate for a $400,000 loan. Estimated closing costs affecting the APR include $4,595 for Origination and Processing Fees, $850 for other Lender Fees; $1,400 for Escrow Fees, and $1,000 for Prepaid Interest.

Call Jay Voorhees or Heejin Kim at (925) 855-4491

Real Estate Broker, CA Bureau of Real Estate, BRE# 01524255, NMLS# 335646

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