This story in the Washington Post: Mortgage Rates Change in the Blink of an Eye highlights the uncertainty in today’s real estate market.

A lot of factors go into making things uncertain right now. For instance, the media continues to foster the idea of a national real estate market – when no such market exists. All real estate markets are local or regional. And now that the government is working an economic stimulus plan through the system, more and more volatility is going to be present in the markets as the mortgage industry figures things out.

In the mean time keep the following in mind: if you’ve been in your house for more than three years, and you’re looking to buy another house that you’ll be in for more than three years – then now is an excellent time to move-up. Interest rates continue to be at or near historical lows, government backed lending limits have been raised to all time highs, and your house has still gone up in value (at least in Anne Arundel county and surrounding areas).

Have your lender keep an eye on interest rates and make sure you lock in your rate when the time is right. Locking in the interest rate on a mortgage loan before it goes to settlement can save you money if rates go up after you lock. At the very least, a rate lock allows you better plan for closing – since you’ll know what your interest rate and cash requirements will be at the settlement table.

Keep in mind however that lock-ins only last so long – usually 30 to 60 days – so if you don’t have a firm date for your settlement within that time frame you might have to pay extra to keep the locked in rate if interest rates go up. This is especially worrisome when it comes to new construction which may be delayed due to weather or other problems, and it can also be an issue if you’re buying a home but don’t yet have yours sold – but you need to in order to qualify.

Get yourself ready to lock-in at a low rate by getting the appraisal done early, providing all necessary paperwork to your lender, and staying in contact with your lender.

Once you get everything done and you feel comfortable with where the rates are today – be ready to act if rates drop to where you want them.

I spoke to one mortgage guy last week who said that rates dropped low but only for a few hours. He called up his clients and asked them if they wanted to lock (most did). A few said they wanted to think about or they wanted some additional information. By the time they were ready to make a decision, rates had already gone up again.

If you’ve fallen behind in your house payments and you are worried about a possible foreclosure – there may be an answer.

If you can currently make your regular payment, but you can’t catch up with the past-due amount – you might be able to negotiate with your lender to fold any past-due amounts, including interest and escrow, into the unpaid principal balance and then having this new amount will be re-amortized over a new period of time.

This type of an agreement is called a loan modification.

There are many reasons that you may want to look into loan modification – although this is not a process that you will want to consider for just any reason, it is one that offers some benefits if you find yourself in a dicey situation.

For many people, the process of loan modification never comes to mind. But on the other side of things, there are some people who have had to deal with this in order to get their life back on track.

So what are the benefits of loan modification? Here are three that you should keep in mind if you find yourself staring this scenario in the eye.

1. If you have missed mortgage payments in the past, but are now back on track, loan modification can help you to keep things this way. Generally speaking, your lender will allow you to roll your missed payments into a modified loan. For this reason, you will be back on track with the ability to pay the money that you missed out on in the past.
2. Simply put, loan modification can help you to keep your home if you are facing foreclosure. As you can imagine, this is one of the biggest benefits of this process. If you have found yourself with foreclosure closing in, loan modification could help you to escape just in time. This is not always the case, but you should at least look into loan modification if you think that it has the chance to help you out.
3. Although the loan modification process is long and drawn out, if it is something that you need to do, it is not nearly as hard as you may think. You will have a lot of help along the way, and if you are willing to make it work, you will definitely want to consider moving through the many steps with speed and precision.

These are only three of the main benefits of loan modification and as you can imagine, there are many others that you will also come across if you are ever faced with this situation.

But remember, the loan modification process is not all fun and games. It would be much better on you and your home if you never have to consider looking into this process.

Even though there are companies out there that will help you negotiate your loan modification – you may be better off in the long run if you try to do it yourself. And in spite of what you might think – mortgage companies handle loan modification requests every day.

Just contact your mortgage company and explain your situation. You might be surprised at how helpful they can be.

Dealing with pre-foreclosure is not always easy to do.

In fact, dealing with pre-foreclosure is never easy to do no matter who you are. The fact of the matter is that this is something that you never want to talk about if you have a mortgage on your home. If you are talking about pre-foreclosure there is a good chance that you are behind in your payments, and feeling like you are going to have your home repossessed. And as you can imagine, this is a process that is far from fun.

The best way to deal with pre-foreclosure is to avoid it altogether. While this is easier said than done for some people, you should remember that your lender does not want to go through this.

When it comes down to it, foreclosing on a home is a timely and difficult process for a lender. Not to mention the fact that they are probably going to lose money on the deal as well. For this reason, if you touch base with your lender before pre-foreclosure sets in, you may be able to work out a deal that both of you can agree on. Even if you are far behind in your payments, there is a chance that they may set something up to help you get back on track.

If pre-foreclosure has already set in, you need to look into what happens next.

Generally speaking, pre-foreclosure is the step before your home is taken back by your lender. At this point, you still own your home, which means that you can do whatever you want.

For most people, the best option during pre-foreclosure is to look into selling. This way, you can make your back payments to the lender, and hopefully, pay off the remaining balance of your home as well. Just remember, you are only going to be in the pre-foreclosure for so long. You need to do whatever you can to sell during this time, if that is what you decide to do. In many cases, this means that you will have to take a lower price than what your home is actually worth.

Overall, dealing with pre-foreclosure is never fun. This is something that every homeowner would rather not talk about. But if you are faced with this situation, there are ways that you can attempt to make things better.

Are you looking to buy a house and/or get a loan approved in the coming months?

Don’t you hate it when your lender or mortgage broker says they need just one more piece of information?

Here is one of the most complete lists of every document necessary for the approval of a loan. Figure out which one’s you’re responsible for – or give me a call and I’ll let you know which ones you need – and then when the lender calls, you don’t have to scramble to get what he or she needs.

Loan Approval Checklist

• Appraisal
• Credit Report
• W-2’s (2 most recent)
• 1040 Tax Returns for 2 most recent years
• Paystubs for all borrowers for last 30 days
• Profit and Loss statement, YTD and balance sheet from accountant for self-employed borrowers
• Business Tax Returns
• Verification of additional income (child support, Social Security Income (SSI), Pensions, etc.)
• Most recent statements on 401 plan, IRAs, stocks, mutual funds, etc. \
• List of all open accounts with balances (credit, auto payment)
• Bank statements for the last 3 months with ALL of the pages
• Gift letter and copy of gift check (if applicable)
• Name and address of landlord (last 2 years) or mortgage company
• Copy of note
• Copy of deed and trust on property being refinanced
• Copy of leases on rental properties
• Copy of contract on sale of present home
• Ratified sales contract with all addendums
• Copy of earnest money deposit check
• Copies of military orders (if applicable)
• Copy of DD214 (Military Discharge Papers) (if applicable)
• Original Certificate of Eligibility
• Copy of the title to any car, boat or other vehicles less than 3 years and paid in full
• Copy of divorce decree or separation agreement
• Child support documents with 1 year payment history from courthouse (if applicable)
• Paid receipt for any collections, charge-offs, judgments, or liens