KIESHA McFADDEN CHECKING IN WITH... COVID-19 GUIDE: CORONAVIRUS & HOME LOANS /// :: MORTGAGE RELIEF ASSISTANCE: If you are unable to make your mortgage payment, ask your lender/servicer if you are eligible for forbearance, which would pause your mortgage payment without damaging your credit. This program can vary from lender to lender, so it’s essential that you get all the details and understand what you’re entering into. Some lenders will add the payments you miss to the end of the mortgage term; most are due at the end of the forbearance period, which means you would pay the missed payments in one lump sum. This seems problematic to me. After all, if a consumer can’t afford one payment, what makes you think they would be able to make four all at once? So if you’re able to make those payments, please do if you’re financially able. :: FORBEARANCE DEFINED: Forbearance is an assistance program for homeowners that pauses your mortgage payment. When you are at the end of your forbearance plan, you’ll need to pay the past-due amount, apply for other programs your lender may offer, or see if you can extend the forbearance period. (TIP: Most lenders will not refinance you for 12 months after a forbearance.) :: MORTGAGE REFINANCING: This is a great option to consider. With historically low-interest rates, it’s a great time to obtain a lower mortgage rate or shorten your mortgage term (or both). Some may see this as a perfect time to get some cash from your home’s equity to consolidate debt or to build a cash cushion during these uncertain times. In some cases, it may take some extra time to process your refinance application. And the underwriting process and guidelines will be different now due to job verification, appraisals and signings. Regardless of what’s going on, you can benefit from these times … possibly like never before. :: LOCKING IN THE MORTGAGE RATE: Locking in your rate is important and will help give you the peace of mind that your mortgage payment will be what you are budgeting for. This is very important when selecting a lender, so you fully understand your options and what their policies are. The good news is that most brokers can lock your loan as soon as you’re ready to move forward. Most banks will not lock until an appraisal is in. Lock periods can be anywhere from 15 days to 9 months (long-term locks are usually for new construction). They do not come cheap. The length you need for a lock will impact the costs related to that specific lock period. Most mortgage rate quotes assume a 30- to 45-day lock period. :: UNDERWRITING: Underwriting will have its challenges, like just about everything else these days. Verification of employment (VOE) is more challenging, with so many companies having limited staff. Underwriters need to verify if the applicant is employed or laid off. Lenders are developing new ways to satisfy this requirement. :: REAL ESTATE HOUSING MARKET: Home values are being affected by COVID-19 and impacting home buyers and home sellers who are considering a new move. And homeowners are not sure how the value of their home is being adjusted. Spring is typically a popular time to buy or sell a home, but many people are hesitant to move forward until they know more about where the coronavirus is heading. Of course, this is impacting the housing market. Many agencies are working on ways to help the housing industry via stimulus package(s) and finding ways to save jobs. Federal and local governments are also working together during these new times. 16930 E. Palisades Blvd., Fountain Hills, AZ 85268 NMLS #1467650 KIESHA MCFADDEN 480.252.9365 Kiesha@TolisMortgageUSA.com NMLS #198458