Featured Articles

Should You Wait Until Interest Rates Drop?

Featured Articles, FHA, Home Buyer, Lynnwood, Mortgage February 5th, 2025

Waiting for a lower rate might slightly reduce your monthly payment, but rising home prices and lost equity-building opportunities often outweigh the benefit. Buying sooner allows you to lock in your home’s price and start building long-term wealth. Plus, if rates drop later, you can always explore refinancing to lower your payment—while rent typically keeps increasing.

Meet Sarah, a first-time homebuyer. She is looking at a $500,000 home. At a 7%* interest rate on a 30-year mortgage, her monthly principal and interest payment would be around $3,326*. She thinks about waiting a year, hoping rates drop to 6%*. At 6%*, the monthly payment on a $500,000 mortgage is about $2,998*—a clear savings.

But if prices rise in the meantime—say that $500,000 home jumps to $525,000—Sarah’s monthly payment at 6% becomes $3,147*, which is closer to what she would have paid at 7%* anyway. Meanwhile, she’s missed out on a year’s worth of potential equity and possibly paid rent instead.

Disclaimer: The values marked with * are rough estimates for informational purposes only. Actual amounts may vary based on individual circumstances, market conditions, loan terms, and other factors. This does not constitute financial advice—please consult a professional for precise calculations and guidance.

Opportunity for Growth: By purchasing now, Sarah locks in today’s home price and starts building equity right away. Even if rates drop later, she could refinance to secure a lower payment—but she won’t miss out on potential appreciation or continue throwing money at rent.

Opportunity Cost of Waiting: If Sarah waits and prices climb, that extra cost may offset—or even exceed—her savings from a slightly lower interest rate. Over the long term, missing out on appreciation and the chance to build home equity can be a bigger setback than paying a bit more in interest initially.

Unsure What’s Right for You?
At David Haley Mortgage, we help first-time buyers weigh the pros and cons of buying now vs. waiting—so you can make a smart choice for your future. Contact us today to explore your options!

The First-Time Homebuyer’s Guide After Preapproval: Costs, Upgrades, and Maintenance in Washington

Featured Articles, Home Buyer December 23rd, 2024

The Ultimate Guide for First-Time Homebuyers in Washington State

Buying your first home is an exciting milestone, and if you’re purchasing in Washington State, you’re stepping into one of the most dynamic and beautiful housing markets in the country. With your preapproval ready and your finances in great shape, you’re already off to a strong start. However, there are key costs and considerations that first-time homebuyers need to be aware of to ensure a smooth transition into homeownership. Let’s dive into the essential aspects of purchasing your first home in Washington.

1. Understand the Costs Beyond the Mortgage

While your mortgage payment is a significant part of your housing budget, there are additional costs to account for. Some of these might come as a surprise if you’re new to homeownership:

HOA Fees

If your new home is part of a homeowner’s association (HOA), you’ll need to pay monthly or annual dues. These fees typically cover community amenities, landscaping, and maintenance of shared spaces. In Washington, HOA fees can range widely depending on the property type and location, from under $100 to over $500 per month.

Escrow

Escrow accounts are used by lenders to collect and pay property taxes and homeowners insurance on your behalf. This ensures these expenses are covered without requiring a large lump-sum payment. Your monthly escrow contributions will be part of your mortgage payment.

Homeowners Insurance

Homeowners insurance is mandatory if you’re financing your home. This protects you against potential damages or losses to your property. In Washington, premiums typically range from $500 to $1,500 annually, depending on the home’s value and location.

Private Mortgage Insurance (PMI)

If your down payment is less than 20%, you’ll likely need to pay PMI, which protects the lender if you default on your loan. PMI costs vary but typically range between 0.3% and 1.5% of your loan amount annually.

Utility Costs

As a homeowner, you’ll be responsible for water, sewer, garbage, electricity, and possibly natural gas. Utility costs in Washington can vary by location, with urban areas like Seattle typically being more expensive than rural communities.

Ongoing Maintenance and Repairs

Experts recommend budgeting 1-3% of your home’s value annually for maintenance and repairs. For a $400,000 home, this means setting aside $4,000 to $12,000 per year for unexpected costs like replacing a water heater or fixing a roof.

2. Evaluating the Condition of the House

Before finalizing your purchase, it’s crucial to understand the home’s condition. Even if the property looks move-in ready, underlying issues can lead to costly repairs down the line.

Get a Home Inspection

A professional home inspection will identify potential issues with the property’s structure, roof, plumbing, electrical systems, and more. Pay close attention to:

  • Roof Condition: Replacing a roof can cost $10,000 or more.
  • Foundation: Cracks or shifting can indicate serious structural problems.
  • HVAC Systems: Check the age and efficiency of heating and cooling systems.
  • Water Damage: Look for signs of leaks or mold, especially in basements and attics.

Factor in Age and Maintenance Needs

Older homes often come with charm but may require updates to meet modern standards. Consider the lifespan of key systems:

  • Roof: 20-30 years
  • Water Heater: 8-12 years
  • HVAC: 10-15 years

3. Planning for Maintenance and Upgrades

Owning a home means taking responsibility for its upkeep. Being proactive can save you money and stress in the long run.

Routine Maintenance

  • Lawn Care: Regular mowing, watering, and fertilizing are essential.
  • Gutter Cleaning: Prevent water damage by clearing gutters twice a year.
  • HVAC Servicing: Schedule annual tune-ups to maintain efficiency.

Potential Remodeling Projects

While your home may not need immediate renovations, you might want to plan for future upgrades to improve functionality or increase property value:

  • Kitchen Remodel: A minor kitchen update can cost $10,000 to $20,000, while a full remodel can exceed $50,000.
  • Bathroom Upgrades: Updating fixtures, tiling, and vanities can range from $5,000 to $15,000.
  • Energy Efficiency Improvements: Consider adding insulation, replacing windows, or installing solar panels to reduce utility costs.

DIY vs. Professional Help

While some maintenance tasks can be tackled on your own, others require professional expertise. Know your limits and prioritize safety and quality for major projects.

4. Financing Fixes and Remodeling Projects

If the home you’re purchasing needs significant repairs or updates, you may be able to finance some of these costs into your mortgage. A well-experienced mortgage professional can be a valuable resource in strategizing the loan structure to ensure it aligns with your financial goals and provides the most benefit. They can guide you through options to make large projects more manageable while maximizing your borrowing potential.

5. Final Tips for First-Time Buyers in Washington

  • Be Weather Ready: Washington’s climate varies widely, from rainy western areas to dry eastern regions. Choose a home designed to handle local weather conditions.
  • Consider Future Growth: Look for neighborhoods with good schools and access to amenities, even if you don’t have children. These factors can significantly impact resale value.
  • Leverage State Programs: Washington State offers first-time buyer programs, such as down payment assistance or reduced interest loans. Research options to maximize your budget.

Buying your first home is a rewarding journey. By understanding the costs, assessing the condition of the property, and planning for maintenance and possible upgrades—with the option to finance renovations—you’ll be well-prepared to enjoy the benefits of homeownership in Washington State. With the right knowledge and preparation, your first home can be the foundation for a secure and prosperous future.

Lynnwood’s Crawford Road/Damson Road Neighborhood

Home Buyer October 26th, 2022

The Crawford Road/Damson Road neighborhood is one of the most prosperous and desirable neighborhoods in Lynnwood.

Known for its quiet streets and secluded feel, this enclave of generally spacious homes is only half an hour’s drive north of Seattle, and about 10 minutes southeast of the lively commercial areas around Alderwood Mall.

Homes

The roomy homes around Crawford Road/Damson Road fetch a mid-to-high price per square foot. Recent sale prices generally fall in the upper tier of the Lynnwood market. Rentals are not common, and there are no large apartment complexes in the neighborhood.

As you’ll find throughout Lynnwood, prices are changing quickly as more people seek to call this area home.

Education

The well-regarded Edmonds School District serves most of the area around Crawford Road. Local families generally send their kids to Hilltop Elementary School, Alderwood Middle School, and Lynnwood High School.

Some parents also opt for one of several private schools within about 5-10 miles of the neighborhood.

Transportation

Like most of Lynnwood, the Crawford Road/Damson Road area is roughly halfway between Seattle and Everett.

The neighborhood has good freeway access, being just minutes south of the I-5/I-405 interchange. And only 3 miles away, an upcoming light rail station will give locals a great option to leave town—and leave their cars behind.

Recreation

Close to home, residents can enjoy the fresh air and greenery at Logan Park. This five-acre county park is located just southwest of the neighborhood, and is one of dozens of others within a few minutes’ drive.

Seattle’s big-city amenities and Everett’s burgeoning cultural scene are both readily accessible, and outdoorsy types enjoy easy access to the Cascades via Highway 2.

Moving to Crawford Road/Damson Road in Lynnwood

It’s easy to see why so many out-of-towners opt for the Crawford Road area, and why plenty of Lynnwood locals hope to own their first house here.

If you’d like to call it home, too, then here are three tips for an easy transaction and transition.

1. Don’t be scared!

If the homebuying process seems a bit overwhelming or mystifying, you’ve got nothing to worry about. Even if it’s not your first house, it’s still normal for the whole thing to feel like…a bit much.

Remember that a big part of your agent’s job is to help you stay on top of all those moving pieces!

2. Find a local expert to guide you

Speaking of agents, it’s essential to find someone who knows Crawford Road and its vicinity like the back of their hand.

Agents who can fill out paperwork are a dime a dozen, but there’s no substitute for the street-by-street knowledge of someone who actually lives and works in the Lynnwood area.

3. Talk to lenders & get pre-approved

Before doing anything else, it’s important to consult a lender and have a mortgage pre-approval in hand.

This will let you move quickly and make a successful offer—fingers crossed!—once you’ve found the ideal Crawford Road/Damson Road home.

Moving to the City of Mountlake Terrace

Blog, Home Buyer December 30th, 2022

The small, scenic city of Mountlake Terrace is one of the most sought-after spots in south Snohomish County.

Known for its desirable real estate and overall prosperity, this town of generally spacious homes is less than 20 minutes north of Seattle. The coming light rail connection has sparked a development boom in this previously sleepy suburb, as new residences and restaurants pop up regularly.

Homes in Mountlake Terrace

The roomy homes in Mountlake Terrace fetch a fairly high price per square foot. Recent sale prices generally fall in the upper tier of the market for south Snohomish County, but remain a good value compared to Seattle proper.

The core of the city comprises single-family homes. There are also several apartment communities—generally high-end and often newly built—primarily toward the western and southern edges of town.

As you’ll find throughout greater Seattle, prices are changing quickly as more people seek to call this area home.

Education

The well-regarded Edmonds School District serves Mountlake Terrace and most neighboring areas. Local families generally send their kids to Mountlake Terrace High School, Brier Terrace Middle School, and one of three public elementaries.

Some parents also opt for one of three private schools within city limits, or several others just a few miles outside.
Transportation
Mountlake Terrace is roughly halfway between Seattle and Everett.

The city has good highway access, being adjacent to I-5 and WA-104 (Ballinger Way/NE 205th/Edmonds Way), and a stone’s throw from WA-99. In the southwest corner of the city, the existing transit center will soon host a light rail station, giving locals a great option to leave town—and leave their cars behind.

Recreation

Close to home, residents can enjoy the well-kept Mountlake Terrace Recreation Pavilion, the popular Veterans Memorial Park (and several neighborhood ones), the wooded Lyon Creek path, and even a public golf course. Dozens of other family-friendly recreation opportunities are located within a few minutes’ drive.

Seattle’s big-city amenities and Everett’s burgeoning cultural scene are both readily accessible, and outdoorsy types enjoy easy access to the Cascades via Highway 2.

Tips for Moving to Mountlake Terrace

It’s easy to see why so many out-of-towners opt for Mountlake Terrace, and why plenty of locals hope to own their first house here.

If you’d like to call it home, too, then here are three tips for an easy transaction and transition.

1. Don’t be scared!
If the homebuying process seems a bit overwhelming or mystifying, you’ve got nothing to worry about. Even if it’s not your first house, it’s still normal for the whole thing to feel like…a bit much.

Remember that a big part of your agent’s job is to help you stay on top of all those moving pieces!

2. Find a local expert to guide you
Speaking of agents, it’s essential to find someone who knows Mountlake Terrace and its vicinity like the back of their hand.

Agents who can fill out paperwork are a dime a dozen, but there’s no substitute for the street-by-street knowledge of someone who actually lives and works in south Snohomish County.

3. Talk to lenders & get pre-approved
Before doing anything else, it’s important to consult a lender and have a mortgage pre-approval in hand.

This will let you move quickly and make a successful offer—fingers crossed!—once you’ve found the ideal Mountlake Terrace home.

Lynnwood’s Alderwood Manor South Neighborhood

Blog, Home Buyer, Lynnwood March 15th, 2023

Alderwood Manor South is a popular and rapidly growing neighborhood in Lynnwood, Washington. As of the 2020 Census, it’s home to just over 5,000 people.

Known for quiet streets and a secluded feel, this enclave of generally spacious homes is only half an hour’s drive north of Seattle, and immediately southeast of the lively commercial areas around Alderwood Mall.

Homes

The roomy homes around Alderwood Manor South fetch a moderate to high price per square foot, in keeping with other desirable spots in Snohomish County.

Owner-occupied single-family homes are the norm. Houses aren’t often for rent. However, there’s a selection of apartment communities, primarily toward the northwestern edge of the area, near I-5.

As you’ll find throughout Lynnwood, prices are changing quickly as more people seek to settle here.

Education

The well-regarded Edmonds School District serves Alderwood Manor South and several adjoining areas. Most local families attend Cedar Way or Hazelwood Elementary School, Alderwood or Brier Terrace Middle School, and Mountlake Terrace High School.

Some parents also opt for one of several private schools within about 5–10 miles of the neighborhood.

Transportation

Like most of Lynnwood, Alderwood Manor South is roughly halfway between Seattle and Everett.

The neighborhood has good freeway access, being just minutes south of the I-5/I-405 interchange. Immediately west of Alderwood Manor South, an upcoming light rail station will give locals a great option to leave town—and leave their cars behind.

Recreation

Close to home, residents can enjoy the fresh air and greenery of several city and county parks near the neighborhood. Dozens of other parks, trails, and green spaces are also accessible within a few miles’ drive.

Seattle’s big-city amenities and Everett’s burgeoning cultural scene are both readily accessible, while outdoorsy types enjoy easy access to the Cascades via Highway 2.

Moving to Alderwood Manor South in Lynnwood

It’s easy to see why so many out-of-towners opt for Alderwood Manor South, and why plenty of Lynnwood locals hope to own their first house here.

If you’d like to call it home, too, then here are three tips for an easy transaction and transition.

1. Don’t be scared!

If the homebuying process seems a bit overwhelming or mystifying, you’ve got nothing to worry about. Even if it’s not your first house, it’s still normal for the whole thing to feel like…a bit much.

Remember that a big part of your agent’s job is to help you stay on top of all those moving pieces!

2. Find a local expert to guide you

Speaking of agents, it’s essential to find someone who knows Alderwood Manor South and its vicinity like the back of their hand.

Agents who can fill out paperwork are a dime a dozen, but there’s no substitute for the street-by-street knowledge of someone who actually lives and works in the Lynnwood area.

3. Talk to lenders & get pre-approved

Before doing anything else, it’s important to consult a lender and have a mortgage pre-approval in hand.

This will let you move quickly and make a successful offer—fingers crossed!—once you’ve found the ideal Alderwood Manor South home.

Lynnwood’s Alderwood Manor Neighborhood

Blog, Home Buyer, Lynnwood April 3rd, 2023

Alderwood Manor is a popular and rapidly growing neighborhood in Lynnwood, Washington. As of the 2020 Census, it’s home to just over 5,100 people.

Known for quiet streets and a secluded feel, this enclave of generally spacious homes is only half an hour’s drive north of Seattle, and adjacent to the lively commercial areas around Alderwood Mall.

Homes

The roomy homes around Alderwood Manor fetch a moderate to high price per square foot, in keeping with other desirable spots in Snohomish County.

Owner-occupied single-family homes are the norm. Houses aren’t often for rent, although there is only one large apartment complex in the neighborhood.

As you’ll find throughout Lynnwood, prices are changing quickly as more people seek to settle here.

Education

The well-regarded Edmonds School District serves Alderwood Manor and several adjoining areas. Most local families attend Lynnwood or Spruce Elementary School, Alderwood or Meadowdale Middle School, and Lynnwood or Meadowdale High School.

Some parents also opt for one of several private schools within about 5–10 miles of the neighborhood.

Transportation

Like most of Lynnwood, Alderwood Manor is roughly halfway between Seattle and Everett.

The neighborhood has good freeway access, being just minutes west of the I-5/I-405 interchange. Immediately southwest of Alderwood Manor, an upcoming light rail station will give locals a great option to leave town—and leave their cars behind.

Recreation

Close to home, residents can enjoy the fresh air and greenery at Pioneer Park. Dozens of other parks, trails, and green spaces are also accessible within a few miles’ drive.

Seattle’s big-city amenities and Everett’s burgeoning cultural scene are both readily accessible, while outdoorsy types enjoy easy access to the Cascades via Highway 2.

Moving to Alderwood Manor in Lynnwood

It’s easy to see why so many out-of-towners opt for Alderwood Manor, and why plenty of Lynnwood locals hope to own their first house here.

If you’d like to call it home, too, then here are three tips for an easy transaction and transition.

1. Don’t be scared!

If the homebuying process seems a bit overwhelming or mystifying, you’ve got nothing to worry about. Even if it’s not your first house, it’s still normal for the whole thing to feel like…a bit much.

Remember that a big part of your agent’s job is to help you stay on top of all those moving pieces!

2. Find a local expert to guide you

Speaking of agents, it’s essential to find someone who knows Alderwood Manor and its vicinity like the back of their hand.

Agents who can fill out paperwork are a dime a dozen, but there’s no substitute for the street-by-street knowledge of someone who actually lives and works in the Lynnwood area.

3. Talk to lenders & get pre-approved

Before doing anything else, it’s important to consult a lender and have a mortgage pre-approval in hand.

This will let you move quickly and make a successful offer—fingers crossed!—once you’ve found the ideal Alderwood Manor home.

Changes to VA & USDA Funding Fees! Oct 1st 2011 – Still 100% Financing Available

Blog, Home Buyer, Home Seller, Seattle Mortgage, USDA Loan, VA Loan, Zero Down Loan September 20th, 2011

This is my first blog and there has been many changes along life’s way and certainly in the lending industry.

Back in 2008 there were over 13,000 loan officer/mortgage brokers in Washington State.  Now, we are under 4,000.  It has a lot to do with all the lending and educational hurdles.  The folks in this industry typically are full-time hard working professionals.

For all those people you knew who use to do loans, here is my advertisement.

I am still in business and would be happy to hear from you!  Why would you call or want to do business with me???  Fair question.  I can say this, after licking all my wounds from this crazy business, I am still standing!  Why?  Because I love this business.

Yes, it is now more difficult to do home loans but I am still doing them and having a great deal of success by educating the buyers and sellers along with my extensive follow-up.

I can definitely say that today’s real estate agents have been knocked around harder than we (lenders) have.  The seller needs to sell even though the values have dropped.  That is not a fun conversation to have!  I get it!  For those Realtors still doing business – good job!  That will pay dividends as there is always ebb and flow, with the pendulum swinging too far left and then too far right but soon it settles in the middle and evens out.  Okay to chuckle here…For those that are new in real estate that is all you know and for the veterans, you know the motto and creed: contacts, shake those hands and plenty of face time.  That is what it is all about!

Now to address the title question: Yes, these are still 100% Financing – Zero Down Loans*

VA Funding Fees Are as Follows:

Purchase and Construction

Loan Type Down Payment Active Duty Personnel / Veterans National Guard / Reservists
Purchase & Construction 0% 2.15% Funding Fee 2.40% Funding Fee
“ 5% 1.50% Funding Fee 1.75% Funding Fee
“ 10% 1.25% Funding Fee 1.75% Funding Fee

All Other VA Home Loan Types (First Time Use)

Loan Type Active Duty Personnel / Veterans National Guard / Reservists
Regular Refinance
(including cash out)		 2.15% Funding Fee 2.40% Funding Fee
Interest Rate Reduction
(IRRL) Refinance		 0.50% Funding Fee 0.50% Funding Fee
Native American Direct Loans 1.25% Funding Fee 2.00% Funding Fee
Manufactured Housing
& Mobile Home Loans		 1.00% Funding Fee 1.00% Funding Fee
VA Home Loan Assumptions 0.50% Funding Fee 0.50% Funding Fee

 

Additional Use / Subsequent Use:

Purchase and Construction

Loan Type Down Payment Active Duty Personnel / Veterans National Guard / Reservists
Purchase & Construction 0% 3.30% Funding Fee 3.30% Funding Fee
“ 5% 1.50% Funding Fee 1.75% Funding Fee
“ 10% 1.25% Funding Fee 1.75% Funding Fee

All Other VA Home Loan Types (Other Than First Time Use)

Loan Type Active Duty Personnel / Veterans National Guard / Reservists
Regular Refinance
(including cash out)		 3.30% Funding Fee 3.30% Funding Fee
Interest Rate Reduction
(IRRL) Refinance		 0.50% Funding Fee 0.50% Funding Fee
Native American Direct Loans 1.25% Funding Fee 2.00% Funding Fee
Manufactured Housing
& Mobile Home Loans		 1.00% Funding Fee 1.00% Funding Fee
VA Home Loan Assumptions 0.50% Funding Fee 0.50% Funding Fee

The funding fee on VA Assumptions and Interest Rate Reduction Refinance Loans is currently 0.5%. This rate remains unchanged regardless of the number of times it is used.

VA funding fee must be paid within 15 days of closing or included in the loan amount.

Veterans whose entitlement is based on active duty will pay a 2.15% fee on their first VA loan and 3.30% on all future loans for the purchase of a home or cash-out refinances.

Veterans whose entitlement is based on Guard/Reserve service will pay 2.40% on their first loan and 3.30% on all future loans for the purchase of a home or cash-out refinances.

USDA – Not just for Beef! It is a loan too…. who would of guessed? Your Home Buyers????

New USDA Funding Fee Changes:

For the first time in the history of USDA, the Single Housing Guaranteed Loan Program has implemented an Annual Fee.   The annual fee will be calculated based on the guaranteed loan amount and based on the average annual scheduled unpaid principal balance for the life of the loan. 

Effective October 1, the upfront guarantee will decrease from 3.5% to 2% for purchase loans.   The up-front guaranteed fee for refinance loan transaction will remain at 1 percent.   In addition, an annual fee of .30 will be calculated when the loan is made and every 12 months thereafter until the loan is paid in full or no longer outstanding and the guarantee cancelled or expired.

Well I hope you enjoyed the reading, and if you made it this far you are still awake and ready to do some business!

Look forward to hearing from you.

David Haley

David Haley | Mortgage Loan Officer MLO-76555
Contact David Haley
425-471-6039
6100 219th St SW, Ste 480
Mountlake Terrace, WA 98043
www.DavidHaleyMortgage.com

FHA Mortgage in Bothell, Mill Creek, Lynnwood, Edmonds, Seattle vs.Conventional Mortgage

Blog, Home Buyer, Seattle Mortgage September 28th, 2011

fha-updateWhen you are looking into your first home to purchase in the Bothell, Mill Creek, Lynnwood, Edmonds, or Seattle area and you are starting the loan pre-approval process, there are a few different loan programs to choose from.

1. FHA financing – which always has the up front mortgage insurance and monthly mortgage insurance built into your payment. The monthly mortgage insurance premium is 1.15% if financing over 95% or 1.10% if less than 95% with a 30 year mortgage and 15 year over 90% is .50% and from 89.99% to 78.01% it is .25% per month.

2. Conventional with mortgage insurance or no mortgage insurance per month, there are different ways to make this happen, there is always a premium to be paid, you can pay it all at one time, the seller can pay it through the closing costs, but be careful as conventional financing allows only so much in closing costs over 90% financing, make sure you are working with an experienced loan officer on these programs.

Another way to structure this is to have your monthly mortgage insurance premium be a little higher per month, reason for this is there is no premium paid in advance, but it does increase your monthly payment.

With conventional financing there are more considerations of what is called credit risk pricing to take into account, the higher your credit scores the better your mortgage rates can be, due to the risk layering set in place by FNMA and Freddie Mac guidelines.

To know which one is best for you, it is important to know your FICO scores, your total debt to income per month, also known as credit liabilities, your reserves i.e. savings, retirement funds, stocks, etc., and the loan to value, which will be your down payment.

When seeking pre-approval around the Seattle, Edmonds, Bothell or Mill Creek area your loan officer will ask for your financial paperwork over the last 2 years and will need to pull your credit, to give you the best way to structure your loan program and options.

Here is a good informational website: www.davidhaleymortgage.com

Seeking Good Loan Officer in Seattle connect with David Haley

Happy Mortgage Shopping!

VA Loan – Risk Assessment

Blog, Home Buyer, Loan, Mortgage, VA Loan December 27th, 2011

In case some of you were not able to make it to the online web discussion – here is one of the biggest items we targeted on. VA loan and Risk Assessments:

Last Week’s Questions & Answers: 12/20/2011

Q: Did you know that there have been updates in DU to the Credit Risk Assessment for VA Loan casefiles? 

A: During the weekend of  Dec. 17, 2011, there were updates to DU for VA loan casefiles and evaluating
credit risk assessment. You may see loans impacted as follows:

  • Overall improved credit characteristics for loan
    casefiles may receive an Approve recommendation
  • A change in the underwriting recommendation for some
    loan casefiles. For example, some loan casefiles that previously received an Approve recommendation may now receive a Refer recommendation, particularly ones with back-end debt-to-income ratios over 45%.
  • Reduced Approve recommendation rates. The overall
    reduction may vary by customer depending on the credit characteristics of the VA loan casefiles submitted to DU.

VA Loan casefiles created on or after the weekend of Dec 17, will be evaluated using the new credit risk assessment. In addition, VA loan casefiles created prior to Dec 17, and resubmitted to DU for any reason (i.e. change in appraised value) on or after the weekend of Dec 17, will be evaluated using the new credit risk assessment if there are any changes to any key credit characteristics of the loan casefile (e.g. LTV).

When we run to find out if a home buyer for a VA Loan will qualify we run it through an automated underwriting system. This will give us specific criteria and tolerances for our loan approvals.

Should you have any questions please contact me.

Howard J. Avatar
Incredible team! Jan and David were amazing in helping my wife and I with the purchase of our second home. They walked us through every step and made the entire process as smooth and stress-free as possible. We couldn’t be more grateful — highly recommend working with them!
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H. J. 4/15/2025
Justin H. Avatar
Working with David was fantastic!! I learned more than just what my home loan needed and was going to have to pay, I took away so much knowledge of how to make my money work for me. David very communicative along the way and answered every question even if it didn’t make sense at the moment he would break it down. If you are going to get a loan and care about the details, go to David Hailey! I will always refer anyone I know to David and his Team. Thanks David!!!!
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J. H. 4/04/2025
Angie L. Avatar
David was great to work with. He took extra time to explain loan structure and made sure the process was as simple as possible, providing tips and detailed instructions at every step. Highly recommend!
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A. L. 4/01/2025
Anna W. Avatar
David has been absolutely the most helpful human being through my and my family’s process of purchasing our first home. He was very relatable and easy to work with! His hard work alongside our realtor made our dream come true! I would give him 100 stars if I could. Highly recommend him
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A. W. 4/01/2025
Brianna C. Avatar
Truly amazing process, support, & communication, so grateful for the guidance in a process that seemed so scary in the beginning, to feeling confident as a first time home buyer! Thank you!
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B. C. 3/08/2025
Brianna C. Avatar
Truly amazing process, support, & communication, so grateful for the guidance in a process that seemed so scary in the beginning, to feeling confident as a first time home buyer! Thank you!
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B. C. 3/07/2025
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