Mortgage & Real Estate Tips and News "Better Informed & Educated Moving Forward"

What You Should Know Before Buying a Home

1. Before you start looking for a home, get pre-qualified for a loan. Banks, credit unions and mortgage bankers make/fund home loans; but a Mortgage Broker works for You with the Knowledge, Training and Expertise, Unmatched by Bank Loan Officers who are Not Even Required to be Licensed at all per the Government? The mortgage brokers, gather all documents, process them, coordinate with All 3rd Party Vendors; Escrow, Title, Appraisal, etc. right down to Loan Papers and Escrow Signing, then Funding and Closing - Everything done For You!
   
2. If you have marginal or bad credit, consult your Mortgage Planner. You may still Have Options! And be able to qualify for a loan depending on how long ago and what reason(s) caused the bad credit. A lender should be able to advise you on whether your credit history will prevent you from qualifying for a home loan.
   
3. You will need a down payment.  Down payment requirements vary depending on the type of loan. Many down payment assistance programs do exist. These programs may loan or grant you the funds necessary for the down payment. Consult with Your Mortgage Broker/Planner about programs available in your area.
   
4. You will need funds for closing costs.   Closing Costs are charges for services related to the closing of your real estate transaction. They include, but are not limited to:
   • Escrow fees charged by the company handling the transaction
   • Title policy issuance fees charged by the title insurance company
   • Mortgage insurance fees
   • Fire and homeowners insurance
   • County Recorder fees for recording your deed
   • Loan origination fees/Points 
     

     Consult with your Mortgage Broker for an actual estimate of these costs, as well as information about loan programs which can assist in financing your closing costs

5. Some loans have "points" and some do not. A point is a loan origination fee equivalent to 1% of the loan amount. Together with the interest rate they constitute the yield on your loan for the lender. Some lenders/Loan Programs allow for a higher interest rate to compensate for charging no points. It is important to comparison shop lenders to make sure your loan is at a competitive yield.
   
6. Should you select a mortgage with a fixed rate or an adjustable rate?  The answer to this question depends on whether mortgage rates are at a high or a low point when you purchase, and on how long you plan to live in the home. If rates are high, an adjustable rate might be attractive since subsequent rate drops could reduce your monthly payments. Additionally, lenders may offer a low rate during the first few years of an adjustable mortgage to make it appealing to you. If interest rates are low you might want to take a fixed rate to protect yourself against the possibility of rising interest rates.
   
7. Be aware of the two main types of loan categories.
   • Conventional Loans. Conventional mortgage loans are available with fixed or adjustable interest rates. Some loans may require mortgage insurance.
   • Government Loans. These include Federal Housing Administration (FHA) fixed and adjustable rate mortgage loans, and Veterans Administration (VA) fixed rate mortgage loan
     
8. If you are a low or moderate income homebuyer, there are special programs designed to help you. These loans are available through private lenders, as well as local and state housing agencies, like the California Housing Finance Agency (CalHFA). Most lenders specializing in real estate mortgage loans are aware of these types of loan programs.  Your Mortgage Specialist at Pinnacle Mortgage Group in Anaheim Hills, CA can explain the differences and walk you through them to decide if one might be right for You. 
   
9. Why might I have to pay mortgage insurance? Mortgage insurance protects the lender from potential loss if you should default on your mortgage loan payment. Generally, conventional loans that require larger down payments do not require mortgage insurance. Mortgage insurance is always required on FHA mortgage loans.
   
10. Many organizations offer home loan counseling to prospective homebuyers. These organizations provide classes for homebuyers to cover the steps to homeownership. They will cover home selection, realtor services, lenders, loan programs, homeownership responsibilities, saving for a down payment, and other important pieces of information. Many first-time homebuyer programs require homebuyers to attend this type of class to be eligible for selected programs.
    

Homebuyers interested in applying for financing should contact a Mortgage Planner with Pinnacle Mortgage Group, to discuss an FHA or CALHFA Loan and requirements.

*CalHFA does not lend money directly to consumers. CalHFA works through and uses approved private lenders to qualify consumers and to make all mortgage loans. CalHFA purchases closed loans that meet CalHFA's requirements. The fees consumers pay could be different depending on the lender and the program.

 From an Article in RisMedia's Real Estate Magazine; Titled, Show & Sell, Smells that SELL.  I want to share with my blog readers - "The Power of Using the Sense of Smell", Especially when Selling a Home.

Humans can discern about 10,000 Smells. Remember Cleopatra? She placed layers of rose petals on her palace floors to entice mark Antony. She knew the power of scent and got that part right, but according to recent studies, the scents that most attract men are Pumpkin Pie and Anise. Well, she didn't have our science or pumpkin pie, LOL.

Retailers have been enticing prospects to buy their goods with thousands of scents for thousands of years. Scent has a Power of its Own!

We Instinctively Know that the power of scent can be good or bad. Strong smells from pets, cooking or toher activities can make prospects run from buying a home. But the Right, Clean Scent can have Quite the Opposite affects!

Scent Suggestions;  Let's say you are selling updated, contemporary Condos and lofts in a hip urban neighborhood where younger singles and newlyweds are buying.

You may decide you don't want these prospects to be highly relaxed, but rather attentive and excited instead. This will help them make decisions more quickly. In this case, use scents of rosemary, peppermint or grapefruit for alertness and stimulation.

If you want to enhance the mood of an older home with many rooms that may invoke a bit of uneasiness or confusion, use any citrus scent. Citrus is refreshing and energizing, eases tension and promotes mental clarity. Or use lavender to promote calming.

Some Scents and their Reactions for your consideration, when "staging" and Showing a Home to Agents and Prospective Buyers;

• Chamomile:  calming and soothing - eases anger and anxiety
• Clary Sage:  relaxing, euphoric - eases anxiety, tension and stress
• Eucalyptus:  fresh, cooling, and invigorating - promotes alertness
• Jasmine:  alleviates anxiety and depression
• Lavender:  calming
• Lemon:  refreshing and energizing - eases tension/heightens mental clarity
• Mandarin:  relaxing and calming - relieves Insomnia
• Peppermint:  refreshing and stimulating - increases alertness
• Rosemary:  a stimulant that promotes mental clarity and alertness
• Sandalwood:  warm, sensual aroma - euphoric and seductive
• And Lastly; Freshly Baked Cookies:  Always a Nice Smell when walking into a home -  but is kind of Obvious and Overplayed in my opinion.

Of course you or your clients will be responsible for removing stale smells and odors from the home when prepping it for broker previews and Sale. And Scenting the home properly to show it in it's best Light (smells and sounds). 

The More Positive Senses You Involve will Surely Help the Home Sell with the Minimum Days on Market!

For more helpful Tips and Tools, Go to:  www.LowRatesOnline.net 

Oh, and please do   

The HUD Secretary is expected to announce changes to the FHA mortgage insurance program to curtail defaults. And they won't be loosening up anything.  The changes may include an increase in the minimum credit score for FHA loans from 500, a boost in the minimum down payment from 3.5% to probably a 5% minimum, plus a reduction in the maximum amount of seller concessions from 6% of the home's value to 3%. Experts say monthly insurance premiums charged to borrowers and the current upfront premium -- currently 1.75% of the loan value -- also could be hiked. 

On the Up side, the $8000 Tax Credit for First Time Home Buyers will Remain unchanged, yet expire in April 2010. So Hurry and get Pre-Approved before HUD changes the Tax Credit program too!!

It's hard to keep track of all the acronyms flying around the mortgage industry these days - HAFA is the Newest Acro:  Home Affordable Foreclosure Alternatives. The Treasury released details of the HAFA program to servicers. It was originally announced in May, and this refinement includes the general terms and conditions, evaluation process, documentation, and reporting requirements. The program will be effective April 2010 and servicers already participating in HAMP will be required to follow the Treasury's guidance. The program standardizes eligibility for short sales, available to borrowers who meet HAMP eligibility requirements but do not qualify for or complete the 3 month Trial Period Plan.

"Upon the successful closure of a short sale or deed-in-lieu through the program, incentives of $1,500 in relocation assistance to the borrower, $1,000 in expense reimbursement to the servicer, and up to $1,000 in investor reimbursement for subordinate lien releases will be provided." And servicers have some leeway to create their own policies.

Although there was little volatility in the stock market yesterday, interest rates crept higher. Analysts are carefully following the spread between mortgage rates and Treasury rates: it has become historically narrow in recent weeks but now seems to be widening out, which is bad news for mortgage prices. Secondary folks get calls from agents saying, "Dude, the 10-yr is unchanged, but you made your pricing worse by .125. You have a Mercedes payment coming up or what??"

And Now, what you all skimmed down to get to;  Some of the New Tiger Woods Jokes popping up all over the Internet................

• Phil Mickelson called Tiger's wife to get advice on how to beat Tiger with a golf club.
• Apparently the police asked Tiger's wife how many times she hit him. She said "I don't know exactly, 4, 5, maybe 6 times...but put me down for a 5."
  What's the difference between a car and a golf ball? Tiger can drive a ball 400 yards.
• Ping just offered Elin Woods an endorsement contract pushing her own set of drivers. They are said to be named Elin Woods...."Clubs you can beat Tiger with."
• News travels fast. The Chinese are already making a movie about Tiger Woods' crash.
  They are calling it, "Scratching Swede, Lying Tiger.
• Tiger just changed his nickname but still kept it in the cat family. His new name? Cheetah.

Help All Home Owners/Future Home Owners, by Taking less than 10 seconds to Sign Petition to Remove HVCC Law 

 Legislation to create an agency designed to protect consumers from abusive and deceptive loans including credit card contracts and mortgages, moved another step closer to passage on Thursday.  The House Financial Services Committee voted 39 to 29, mostly along party lines, to send HR 3186, the Consumer Financial Protection Act (CFPA) to the full House for consideration.

In a separate vote, the Committee also moved up the implementation date to December 1st, for a credit card law that had passed earlier; The regulations which govern, in part, the way interest rates can be raised, were originally set to go into effect in mid-February but there has been a storm of consumer complaints as the banks have rushed to hike rates ahead of the deadline.