The DOW climbed 93.24 points to close at 12554.20 this past Friday. This was the fourth gain in a row and capped its biggest weekly advance since December. According to a Federal Reserve Survey-Beige Book, the U.S. economy grew moderately in most regions of the country this Spring and companies kept hiring. The U.S. trade deficit shrank by 4.9 percent to $50.1 billion in April-the first decline in U.S. exports in months. The S.A. Express News reported that U.S. wholesale inventories were up 0.6% after responding to a strong gain in sales for April. The increase could be another sign for economic growth in the April-June quarter. When businesses step up restocking, they order more goods. That generally leads to increased factory production and even higher economic growth. Once again, oil and gas prices dropped this past week-sending more money back into households-where it should be in the first place.

Real Estate, Mortgage Industry, and Other Economic News

“Orchards report close to 100 percent crop,” was a mini headline in the S.A. Express News last week. A welcome surprise for Hill Country growers who worried that the drought might punish production for two years running. The report also stated that so far, big crowds of peach lovers have poured into Fredericksburg, Stonewall, and other Hill Country communities to buy their favorite fruit earlier than normal. “ I keep wondering where all the people keep coming from,” said Luana Preiss, who owns Gold Orchards in Stonewall with her husband. “Its exceptionally busy. It’s like it’s the middle of summer.” This has growers and hospitality officials in the Hill Country excited. Tourist dollars sometimes turns into ‘stayer’ dollars-if you understand my meaning.

Record lows again as average U.S. rates on 30 year and 15 year fixed mortgages fell to record lows for the sixth straight week. Freddie Mac reported that the 30-year loan dropped to 3.67%, down from 3.75% a week ago. The 15-year loan declined to 2.94% from 2.97% last week too.

I want to go over in short detail what all is in involved when applying for a Mortgage pertaining to income and assets. In a nutshell just two words, “paper work”. By paper work, I mean this: If you are a W2 wage earner, then it’s fairly simple. FHA government loans require the following: 2 months most recent paystubs, most recent 2 year W2’s, 2 months of all cash asset accounts (checking, savings, mutual funds, etc.). However, if you are self-employed, commissioned based, or retired, besides what is mentioned above, be prepared to provide: Most recent 2 year tax returns with all schedules. Also, be prepared to provide proof that you will receive the income reported on the returns-whether it is from IRA’s, Annuities, oil/gas leases, etc. You are required to show proof of continued receipt of those incomes for the next three years-in most cases.By being prepared up-front, you will find the home-buying/financing process a lot easier and faster. Find a local Realtor and Mortgage Loan Officer and let them be your guide to one of the most important financial decisions you will make in a lifetime. It is still exciting and fun to go after the American Dream of Homeownership. Go for it-the time is now!

This article is for informational purposes only. Do not use it as financial advice. For questions/comments contact Tony Stevenson at 1.800.860.4660 or email: tstevenson@swbc.com