Good Time to Buy Bad Time to Sell

Good time to buy, bad time to sell. The housing index from the National Bank has been released for February. What it shows is a dramatic decrease in housing prices in Vancouver.

"It confirms that by year end, after more than five years of seller's-market conditions, Canadian housing as a whole had become a buyer's market," National Bank Financial said in a statement accompanying the numbers.

The current low mortgage rates with a moderation and/or reduction in prices will make the Vancouver Real Estate market more affordable. How fall will it go is anybody's guess.

Duncan Seward is associated with TMG a group of mortgage brokers in BC. He helps people arrange a mortgage in BC. Every Friday he updates BC mortgage rates. You can check out his blog covering the mortgage market in Vancouver.

What Does An Underwriter Do?

The writer is a Vancouver mortgage broker with experience in bad credit mortgage in Canada applications. He is familiar with most bad credit Canada mortgage lenders. Potential purchasers need not be worried if there credit difficulties in the past.

Each underwriter analyzes the loan package, estimates the risk to its organization, and determines whether the benefits are sufficient to balance the risk. The following kinds of risks are present in a typical residential mortgage loan:

When reviewing an individual mortgage application, a lender's underwriter is mostly concerned with determining credit, collateral, compliance, and possibly secondary market risk, as they all relate to default risk. The other areas of risk are more toward management, operations, and finance-equally important, but typically not within the scope of the underwriter's file review.

The underwriting analysis quantifies the risk factors present and measures these against other strengths in the file to determine whether the strengths offset the weaknesses. The price of the mortgage-the interest rate and points paid by the borrower to the investor-rises incrementally with the number and extent of risk factors present in the loan.

Vancouver mortgage insight is provided by Duncan Seward a registered Vancouver mortgage broker with TMG. He helps clients in North Vancouver, Surrey, Vancouver, Coquitlam, Maple Ridge, Burnaby and Langley with their mortgage questions. He is an expert in BC mortgage matters. You can check out regular mortgage updates at his blog page Vancouver Mortgage Rates.

Benefits of Using a Realtor

The writer is a Vancouver mortgage broker with experience in bad credit mortgage in Canada applications. He is familiar with most bad credit Canada mortgage lenders. Potential purchasers need not be worried if there credit difficulties in the past.

Realtors will often know how to use the MLS in ways that traditional real estate agents may not be aware of.

For example, they can search the description fields of homes available for sale for keywords like "handyman special" or "TLC needed." Other keywords include "needs work," "as is," and "seller motivated." One additional term your dealer can search for is "VLB," which means "vacant on lock box."

This frequently indicates that the seller has already moved into another house for any number of reasons (transfer, new home, etc.) and is now in the unenviable position of making two house payments.

The house is likely to be in fairly good condition, with only minimal repairs needed, but a seller making two house payments may be willing to take considerably less than the true market value. Small things maybe but they can add up to big savings on the selling price.

The writer is associated with TMG, a group of BC mortgage brokers Vancouver. We source mortgages through mortgage broker Vancouver lenders. BC mortgage lenders depend on TMG to provide them with high quality clients. In return, TMG provides excellent rates and excellent advise.

The Market is Leveling

The writer is a Vancouver mortgage broker with experience in bad credit mortgage in Canada applications. He is familiar with most bad credit Canada mortgage lenders. Potential purchasers need not be worried if there credit difficulties in the past.

The Vancouver Sun has written a story on the leveling real estate market.

The decline of Lower Mainland real estate markets, which started with falling sales more than a year ago and saw prices drop as the global recession developed, levelled out in May. Metro Vancouver recorded its best year-over-year sales increase in May since February 2008 with 3,524 sales reported through the Multiple Listing Service, 17 percent higher than the 3,002 sales recorded in the same month a year ago.

Clearly, the market is turning or the media is pimping the market. I suspect the later. We will still be looking at falling prices in the Vancouver real estate market.

Vancouver mortgage insight is provided by Duncan Seward a registered Vancouver mortgage broker with TMG. He helps clients in North Vancouver, Surrey, Vancouver, Coquitlam, Maple Ridge, Burnaby and Langley with their mortgage questions. He is an expert in BC mortgage matters. You can check out regular mortgage updates at his blog page Vancouver Mortgage Rates.

Degrogatory Credit - How So?

The author of the article is a Vancouver mortgage broker who specializes in mortgage applications with bad credit.

When qualifying applicants, the loan officer should also explain how the lender defines an "acceptable credit history" in its loan policy or for that particular program. Most lenders consider only the most recent two years of credit history, with the following entries on a credit report categorized as "derogatory items," which adversely affect the credit decision:

• Late payments
• Past due and/or collection accounts
• Law suits
• Judgments
• Bankruptcy
• Concealed liabilities
• Numerous recent inquiries

In some situations, a mortgage lender may not be able to justify a loan to an applicant regardless of current income or assets because of past credit problems. Unless the applicant supplies a written explanation with an acceptable reason for the credit problems, the lender may decline the application for an unacceptable credit history, delinquent credit obligations, or insufficient credit history.

In all situations, applicants should be advised that if the loan is turned down because of adverse credit information, they may contact the credit bureau that furnished the derogatory information.

Duncan Seward is a Vancouver mortgage broker. Mortgage BC is the focus of his business. He is an expert in bad credit mortgage refinance applications. Poor credit loans need not be a concern to clients with a damaged credit histories.

What's In a Number

The writer is a Vancouver mortgage broker who specializes in bad credit mortgage applications.

Most credit reports today include a credit score-a numeric rating of the applicant's overall credit history. Several companies produce credit scores, each with its own proprietary formula for calculating the score. Many factors are considered in arriving at a score. Fair, Isaac and Company (the term FICa comes from its name) states that the factors used to score people are as follows:

• What is their payment history? Roughly 35 percent of score.
• Do they owe too much? 30 percent of score.
• How established is their credit? 15 percent of score.
• Do they have a "healthy" mix of credit? 10 percent of score.
• Are they taking on more debt? 10 percent of score.

A person's score also may be affected by repeated applications for credit, though the model treats multiple inquiries in a short period of time as a single inquiry, to avoid penalizing consumers for shopping for the best rate.

Vancouver mortgage insight is provided by Duncan Seward a registered Vancouver mortgage broker with TMG. He helps clients in North Vancouver, Surrey, Vancouver, Coquitlam, Maple Ridge, Burnaby and Langley with their mortgage questions. He is an expert in
BC mortgage matters. You can check out regular mortgage updates at his blog page Vancouver Mortgage Rates.

The Impact of Technology on Mortgage Processing

The writer is a Vancouver mortgage broker who specializes in bad credit mortgage applications.

In the nineties mortgage applications were processed by hand with hand written documents and personal reviews. Mortgage origination software programs have greatly improved the speed and accurately of the process. In the drive for lean and mean lender underwriters have come under increased stress to process applications. The arrival of the mortgage broker has enabled lenders to off load their process onto the broker.

The role of the mortgage broker partly covers underwriting the application for the lender. This process gives a mortgage broker more insight into the mortgage decision process then most consumers. Senior mortgage brokers routinely assemble the file for the lender. This experience with underwriting allows the senior mortgage broker to correctly advise his clients on the right products as well as providing highly competitive rates. No haggling required.

Vancouver mortgage insight is provided by Duncan Seward a registered Vancouver mortgage broker with TMG. He helps clients in North Vancouver, Surrey, Vancouver, Coquitlam, Maple Ridge, Burnaby and Langley with their mortgage questions. He is an expert in
BC mortgage matters. You can check out regular mortgage updates at his blog page
Vancouver Mortgage Rates.

The Inside View of Residential Mortgage Applications

The author is a Vancouver mortgage broker with an expertise in mortgage bad credit applications in Canada.

Another important change is in the approach to processing itself. Lenders no longer follow one universal procedure to process a mortgage application. How they process depends on the loan program. Additionally, the extent and type of processing documentation differs significantly from just 10 years ago.

A final but equally significant difference one sees today in the mortgage origination and processing area is a blurring of lines traditionally separating these functions.

Prior to banking deregulation in 1978, loan officers were "order takers"-essentially they just completed the application for the single mortgage product offered and handed over the signed documents to the processor, who handled the application until it went to the weekly (or monthly!) loan committee meeting.

This passive role has evolved over the past 30 years, along with the mortgage marketplace.

Today, loan officers counsel the consumer on the different loan products available, complete a significant amount of the processing at application, and maintain contact with the applicants until loan closing.

This requires the loan officer to have additional skills and knowledge and can expose the lender to additional compliance risks, but both lender and consumer benefit tremendously from quicker approval times and higher approval rates.

Duncan Seward is a Vancouver mortgage broker. Mortgage BC is the focus of his business. He is an expert in bad credit mortgage refinance applications. Poor credit loans need not be a concern to clients with a damaged credit histories.

The Inside View of Residential Mortgages

The writer is an expert in mortgage bad credit applications. His focus on bad credit applications in Canada.

The residential mortgage loan origination and processing functions include all actions and procedures that occur from the time a potential borrower has contact with the lender through the time the underwriter reviews the application for a decision to approve, deny, or counter offer .

The speedy, professional completion of this function is crucial to any mortgage lender and, along with the quality of loans originated, is the determining factor in the success and profitability of the residential mortgage-lending operation. As in all aspects of residential lending, the chartered banks continually set the industry standards. The majority of lenders nationwide follows their guidelines and uses their forms.

Loan processing remains the lengthiest step involved in producing a closed residential mortgage loan. Until the early 1990s, this step might easily have taken three weeks to 45 days. This is not acceptable in today's competitive marketplace. Now the trend is for faster loan processing-many mortgage lenders advertise that they will get an answer for the applicant within minutes. While not all lenders issue a loan decision within minutes (but many do), most lenders complete processing of a loan in a few days to a week, or maybe two weeks or more in times of increased refinance activity.

Duncan Seward is a Vancouver mortgage broker. Mortgage BC is the focus of his business. He is an expert in bad credit mortgage refinance applications. Poor credit loans need not be a concern to clients with a damaged credit histories.

Condo Market Bargins

The writer is a Vancouver mortgage broker with an interest in mortgage bad credit Canada.

The volume of unsold condo's in Vancouver has caused developers to hold back on the starts of new developments until the glut in the market recedes. It is anticipated that the market will recover slowly, not like the boom of the previously cycle.

The good news is the market is now becoming more balanced and affordable.

Vancouver real estate is the topic of most conversations in BC. Duncan's Vancouver mortgage business gives him the insight to provide topical articles on the state of Vancouver real estate.

Business for Self - How the Banks Are Squeezing Small Business

The writer is a mortgage broker who specializes in self employed mortgages.

The following is an excerpt from an article in Slate. The author is a small business banker who writes a blog the Anonymous Banker I imagines he remains anonymous because he wants to remain employed. Here is the excerpt...

I’d like to add one final observation. When a bank cancels a business credit line, they do this without warning. The line is simply frozen and no additional draws are allowed. A letter is sent to the business owner requesting updated financial information, AFTER the credit line is revoked. In a frenzy, the business owner faxes in their financials to a nameless, faceless person who evaluates their condition. In my experience, I have seen the following reasons provided in the bank’s refusal to reinstate the lines of credit: (a) Decrease in revenue and/or profit (b) weaknesses in cash flow (c) debt to income too high.

Our country, and the world, is in the grips of an economic tsunami that the banks caused. This situation is rooted in the financial industries endless quest for greater profits and the absence of any safe and sound lending practices, further compounded by our Regulators refusal to halt the industry’s despicable practices over the last ten years.

What he is talking about is the unseen moves banks are using to squeeze the self employed. This will have a dramatic effect on the ability of the self employed to secure mortgages. As they squeeze and tightened credit, it will be more difficult to secure mortgage financing.

Duncan Seward is a Vancouver mortgage broker. Mortgage BC is the focus of his business. He is an expert in bad credit mortgage refinance applications. Poor credit loans need not be a concern to clients with a damaged credit histories.

Banks Move in for Your Cash

Mortgages should be a simple thing. The spread in Vancouver mortgage rates is significant and a switch in mortgages makes sense.

The difference in the rates between the best rate in the market can run from 1.5-2%. Seems reasonable that a switch should save you money.

The banks now view the discounts and cash backs as extras that you should pay for in the event you want to take advantage of a lower rate. The problem is that these extras can add up to a big penalty.

The IRD has popped up as a major obstacle to switching. What should be simple, is now causing Vancouver mortgage holders to throw up their hands in horror at the penalties being delivered with a smile by their friendly banker.

I have seen quotes as high as $14,000 for a 12 month penalty. Big money to be sure. The following article on my Vancouver mortgage blog goes into detail on the calculation and how you can determine if your banker is playing with a clean deck.

Duncan Seward is a Vancouver mortgage broker. Mortgage BC is the focus of his business. He is an expert in bad credit mortgage refinance applications. Poor credit loans need not be a concern to clients with a damaged credit histories.