Recent heavy rains in Southern California, causing erosion, mudslides, and road closures, have impacted not only property values but loan processes, highlighting how extreme weather events can influence homeownership and lending decisions. Different regions of the country struggle with climate issues that can be both seasonal and unexpected – torrential rain, hurricanes, tornadoes, fires, and earthquakes, for example – making it especially tricky when trying to buy or sell a home and qualify for home insurance. Lenders may require additional inspections and/or appraisals to verify the property’s condition before finalizing a loan in areas affected by natural disasters or extreme weather, adding another layer of complexity to an already intricate transaction. What are the best resources to help potential homebuyers become better informed about weather implications for their chosen property?

A good credit score is a crucial factor in determining the ability to secure a mortgage, and the higher the score, the better the interest rate. For the first time in 10 years, the national average has slipped to 717, where scores of 720 and above are considered the standard to qualify for the best available rates. More buyers are competing for fewer properties, and lenders prefer to work with those they believe are the safest risk. How can prospective borrowers determine whether their scores have changed and what improvements can be made to secure the best mortgage, especially with rates continuing to rise?

The “lock-in effect,” a phenomenon in which homeowners with low mortgage rates are reluctant to sell, is another factor contributing to the shortage of available homes. Should potential buyers consider purchasing now and refinancing when rates decrease, rather than waiting for lower rates and possibly facing higher home prices later? This week’s guests include:

– Wendy Van Wessel (Kind Lending) discusses CalHFA’s Dream Shared Equity Program and My Home Second program.

– Tomas Trujillo (Jet Mortgage) shares insights on various loan products and strategies for homebuyers in the current market.

– Jennifer Conrad (Malibu Funding) explores changes in loan processing and underwriting with non-QM loans and creative solutions for self-employed borrowers.