Qualifying for a mortgage can be a challenging proposition for some borrowers. Lenders consider a wide range of factors when determining eligibility for mortgages. Here are five of the most common mistakes made by borrowers when seeking a mortgage in the financial marketplace.

Taking on New Debt

Most financial experts recommend that mortgage applicants avoid taking on new credit cards or loan arrangements during the lead-up to the process. New debt can complicate the calculations of the lender and may cause delays or denials for mortgage applicants.

Incurring Overdrafts and Insufficient Funds

Excessive overdraft and insufficient funds fees can serve as a warning sign for lenders that the borrower is less than responsible in his or her financial matters. This can add up to an unfavorable picture for the lending institution and a denial for the borrower.

Failing to File Income Tax Returns

Income tax returns are among the most common tools used by lenders to verify the financial means of mortgage applicants. Failing to file these documents in a timely fashion can add up to real trouble for borrowers and may result in significant delays in processing the mortgage paperwork. In some cases, borrowers may be denied outright due to their failure to file tax returns and documentation in a timely manner.

Overlooking Payments

Failing to pay small medical or credit card bills can sometimes serve as a warning sign to banks and lending institutions that a borrower is not a good prospect for a mortgage arrangements. Most lenders will, at a minimum, require the borrower to pay off any outstanding charges and bills at the time of closing. Some will deny the application based on repeated failure to pay bills on time.

Changing Employment Status

Borrowers who move from one employer to another may experience minor delays or issues when seeking a mortgage. For those who move to self-employment from salaried or hourly positions, however, the lack of stability and security associated with this status may create roadblocks to acquiring a mortgage successfully.

At Acuity National Real Estate Solutions, we offer a full array of closing and title solutions designed to help lenders, borrowers and agents achieve their real estate goals. Give us a call at 502-238-7500 to discuss your situation with one of our expert representatives. We are ready to serve all your real estate title needs. Visit our homepage today!

Have you taken stock of what went well in 2016 and what areas need improvement? Have you set an agenda for 2017, creating clearly defined goals? If so, Acuity National Real Estate Solutions is a national title agency that can help you achieve them.

A National Title Agency Streamlining Any Transaction, Anywhere

Acuity National Real Estate Solutions is an attorney-owned, client-focused national title agency that wants to help you succeed in 2017. We automate labor-intensive steps to streamline turnaround times and reduce the number of vendors you have to work with by providing:

• ? Residential and Commercial Transactions
• ? Title Clearance
• ? Lien Release Processing
• ? Document Recording and Retrieval
• ? Property document preparation
• ? E-recording

Efficient, Individualized Service

We provide individualized service without every sacrificing quality or efficiency, and we?ve achieved this by providing:

• ? An after-hours closing hotline where you can get actionable advice on your transactions
• ? A 24-hour client portal where you can access, upload, and download files at any time

What?s Your Goal for 2017?

Improve your cash flow? Close more purchase transactions? Better serve your market? Whatever your goals are in 2017, we can help. To learn more about our national title agency and our services, please visit our homepage today!

As we enter the new year, it?s a good time to look at the mortgage origination trends for purchase transactions and refinances. According to the Mortgage Bankers Association?s (MBA) December Mortgage Finance Forecast, total volume for one- to four-family mortgage loan originations is expected to drop in 2017 thanks to higher interest rates and a continually slow refinance market.

Purchase Mortgage Origination Volume

Purchase mortgage origination volume should continue on its upward trend, the MBA reported, thanks to ?strong household formation coupled with further job growth, rising wages, and continuing home price appreciation.? Though purchase origination forecasts for the first quarter were revised down between November and December, the predicted $1.10 trillion in purchase originations for the year would be an 11 percent increase from 2016 and the most since 2007. While purchase mortgage origination volume has risen steadily since 2011, from a low of $500 million to near $1 trillion in 2016, refinance volume has seesawed since the housing crash.

A Short-Lived Refinance Boom

An increase in refinance volume in 2012 was followed by decreases in 2013 and 2014. And despite the ?mini refi boom? of 2016, the MBA predicts that the next several years (2017 ? 2019) will see refinance volume drop steadily from $479 billion in 2017 to $395 billion in 2019. if mortgage rates climb much higher, fewer homeowners will have an incentive to sell their existing home and purchase a new one; roughly two-thirds of existing mortgages sit at a rate of under 4.5%.

How Lenders and Realtors can Plan for the Future

The supply and demand fundamentals of the housing market remains strong. Although mortgage costs may rise, incomes may continue rising as well. Lenders and realtors will have to focus their efforts on an increasing number of Millennials now entering the housing market.
With refinance volume dropping, lenders will have to rely more on purchase transactions, which means partnering with a title agency that simplifies mortgage transactions for all parties involved. As a one-stop solution for real estate transactions of all kinds?no matter the size, complexity, or geographical location of the relevant properties ? Acuity Real Estate Solutions is that title agency.

Partner with Acuity National Real Estate Solutions in 2017

Acuity National Real Estate Solutions is an attorney-owned, client-focused national title agency that is redefining what a title agency can be. By automating labor-intensive steps in mortgage transactions and offering superior customer service, we have become the trusted title partner for high-volume lenders across the country. To learn more about our services, visit our homepage today!

A recent article on Inman featured 8 real estate experts that shared their beliefs about which direction the housing market would take in the coming year. In many ways, 2016 was an unprecedented year. From Brexit to the Chicago Cubs winning the World Series to Donald Trump?s election, 2016 wasn?t short on surprises. Historically low mortgage rates encouraged the strongest home sales in nearly a decade, despite home prices rising nationwide. Will 2017 see more of the same?

Interest Rates and the Economy

Another narrative for 2016 was the Federal Reserve?s waffling on interest rates. In the first half of the year, China?s economy went into a slump, then Brexit happened, and none of the 4 proposed interest rate hikes for the year materialized. Now, however, the Fed is ready to move, with the economy creating an average of 188,000 jobs per month in the last year. Unemployment now stands at 4.6%, the lowest rate recorded since August 2007.

Mortgage Rates

With interest rates set to rise to as much as 4.5% in 2017, mortgage rates will rise as well. Homeowners and prospective buyers in overpriced markets like Miami, San Francisco and Los Angeles are likely to feel the burden of higher rates more than most. The prevailing sentiment is that higher rates ?will dampen both home sales and price increases next year?. Others aren?t convinced.

Home Sales

Amazingly, the National Association of Realtors is predicting existing-home sales to eclipse the 5.8 million forecast for 2016, with 6 million sales predicted for the coming year. The Mortgage Bankers Association, Fannie Mae and Freddie Mac are even more optimistic, predicting 6.5 million and 6.2 million sales, respectively. There?s the downward pressure of higher borrowing costs and the upward pressure of stronger economic growth ? jobs and income ? and the MBA, Fannie Mae and Freddie Mac are putting their bets on the latter.

Home Affordability

Supply and demand. Inventory is down 11% in the nation?s top 100 metropolitan areas and home prices are anticipated to increase 3.9% nationwide, with the greatest appreciation (5.8%) in Western metros. That?s roughly 1% below the 4.9% increase we expect to see for all of 2016. Still, it?s all about location, location, location.

Some metros ? like Boston – Cambridge – Newton ? are expected to see prices rise over 6%. Speaking of location, realtor.com? rates 15 of the 19 largest markets in the wonderful Midwest as having ?strong affordability.? With Millennial market share already higher in these markets by 4%, this trend is expected to continue even as interest rates increase, a development that should shape lender marketing campaigns and outreach efforts. Outside of the big metro areas, the picture looks good for homebuyers, with few buyers having to spend more than 20% of their income to buy a home.

Meet Demand and Stay Compliant with Acuity National Real Estate Solutions

Acuity National Real Estate Solutions is a technology-driven title agency offering cutting-edge tools to help lenders and loan officers reduce cost, increase compliance, and streamline closings. For more information, please visit our homepage today!