In another of our William Raveis division blog series, Linda Dorsey, Executive Vice President of William Raveis Mortgage talks about how easy it can be to attain the best mortgage through our service, Xcelerator365!
In recent years, the mortgage industry has evolved, allowing for more opportunities for buyers to purchase homes. This has come in the form of various product offerings as well as more advanced technology to streamline the process and allow borrowers to drive more of the validation process with less paperwork. The technology allows for verification of Employment, Income, and Assets.
Previously, you would need to put 20% down to qualify for a mortgage, but that is not the case anymore. Now you can get into a home with as little down as 3% with affordability programs such as Fannie Mae HomeReady and Freddie Mac HomePossible. HomeReady and HomePossible mortgages are 3% down mortgages that offer reduced private mortgage insurance for low- and moderate-income borrowers. The entire down payment can be in the form of a gift from a family member, and the borrower is not required to be a first-time homebuyer. Homeownership education is required on these loans to prepare the borrower for homeownership and gain knowledge of the loan process.
William Raveis also offers a bank statement program to make it easier for self-employed borrowers to demonstrate their income and ability to repay the loan. We use the borrower’s bank statements to analyze their deposit history and calculate an income stream. Bank statement programs require the same loan to value and debt to income ratios as conventional financing. These loans can be used for primary, second home, and investment properties.
William Raveis Mortgage’s Xcelerator365 website allows for a consumer to apply online and have the option to pull their credit report and/or request validation of Employment and/or Income if eligible. We have streamlined the mortgage process to empower our customers by enabling them to integrate with major financial institutions to verify assets without providing traditional bank statements. This technology is backed by a Fannie Mae feature to simplify the mortgage process. It reduces the amount of documentation that is required by the borrower and uses vendor documents to verify and validate the borrower’s income and assets. In addition, with the use of collateral underwriter, there are waivers that can be received to offer additional assurance for the appraised value, and in some instances waive the requirement for an appraisal. Freddie Mac also offers a similar feature, that allows lenders to use vendor documents in lieu of paystubs, bank statements, etc. to validate the borrower’s income and assets. We have seen processing times reduced by an average of 10 days on loans that qualify for use of these validation services.