How To Bid On A Foreclosure

Click on the title to link. If you are thinking about buying a house, and may be interested in looking at a foreclosure, then you need to check this article out. It may not be the easiest process, but you can certainly get some good deals going this route.

10 First Time Buyer

Click on the title to link. This is a good article about first time homebuyer mistakes that can really affect your search for a house. Read through it and share any questions you may have with us.

Mortgage Reality Check

Some of you may have seen this on ABC News. It is a good video about the difficulties of getting a mortgage now-a-days with all the new regulations, and stingy banks. Now is, without a doubt, the most frustrating time we have seen in 9 years to obtain a mortgage. We hae always told our clients that lenders do not lend in logic, they use guidelines that often make no logical sense. The problem now is many of they have transitioned into the illogical. Not only do they use strict guidelines they are now venturing outside of the guidelines and asking for stupid things (and we mean really stupid sometimes). And often, unfortunately, it is due to laws that our terrible Congress has passed that are intended to make it "safer and easier" on you the consumer. Instead it has done the exact opposite (typical).

All of this said, you have to be careful not to let this video (and our statements) prevent you from pursuing a mortgage. There may never be another time when the perfect storm hits like it has right now. What is the perfect storm? Increadibly low rates and a dismal sellers market. You can get more house for the dollar than ever before. So from a purchase stand point it has never been better.

The same applies to refinancing. Yes, getting a mortgage can be (will be) a pain in the butt. But (no pun intended) rates are so low that you just cannot pass them up. We have seen our fair share of stupidity by lenders and law makers. However, we are here to help you navigate through the rough waters. This is why it is important you work with somebody who has your best interest at heart. You can work with a bank, but you have no buffer to help you understand why they are needing what they need. And you have nobody there to walk you through it. We often explain to people up front what issues may arise because we have seen it so much. Surprises come, no doubt. But if we can anticipate most of the garbage thrown at us all then it makes for a much smoother loan. That's our role for you.

6 More Hurdles for Home Financing

Click on the title to link. We changed the title of our post just slightly from the article to reflect the fact that the hurdles listed in the article are really six more hurdles. They are the major ones indeed, but there are so many that you could practically write a short book about it.

The bottom line? If you have not got a mortgage in a couple of years then you need to know that this is not "business as usual" anymore. In fact, it is so ridiculous sometimes that it can be maddening. We deal with it everyday and it is insanity what some of these lenders deem necessary. About the only thing left to analyze is urine samples. And don't put it past our current government to move in that direction (kidding, mostly).

Regardless, rates are insanely low. We just keep waiting for them to go up, and they keep going down. Obtaining a mortgage before could be unpleasant because of the dope you were working with. Now it can down right lead you to craziness UNLESS you are working with someone you trust. Now, more than ever, it is critical that you work with someone who is referred to you, or can really show you how they work. If they cannot do that then run. We are here to help walk you through all of this, hand in hand. That is the only way you will have a smooth and understandable process.

Ideas For A Down Payment

Click on the title to link...

FHA Increasing Fees

Click on the title to link. The news just gets better and better. HUD announced today that it is going to raise the upfront Mortgage Insurance Premium (MIP) from 1.75% of the loan amount to 2.25% sometime this spring/summer. Although this amount is rolled into the loan and is not a direct cost out of your pocket, it does raise the loan amount which, consequently, raises the payment.

Further, they are petitioning Congress to increase the monthly mortgage insurance premium, which would also increase the payment. So qualifying will, potentially, become more difficult now. FHA says, "Not everybody should own a home." Really? Daaaahhh! Maybe that explains a big reason for the mess we are in now. Of course not everybody should own a home. So the answer to that in their mind...make it harder for those who should own a home to buy one. That makes sense.

Home Buyer Tax Credit - Extended

Whether you agree or disagree philosophically with the government help programs, congress has extended the home buyer tax credit. It's no longer called the "First" time home buyer credit because it is available to certain non-1st time buyers. There are a lot of myths about who can get this tax credit, so please review the following:

Important date: May 1, 2010. This is the date that purchase contracts must be signed to be eligible. The transaction must close by July 1, 2010. But purchase contracts dated June 1st, for example, are not eligible even though they will close prior to July 1st because the contract was executed after the May1, 2010 deadline.
First-time Homebuyer: Tax Credit Amount = up to $8,000. How is this calculated? It is 10% of the home’s value or $8,000 whichever is less. So, any home over $80,000 will get a maximum tax credit of $8,000.
What is a First-time homebuyer? It is anyone that has not previously owned a home or has not owned a primary residence within the last 36 months. Individuals that currently own second homes or vacation homes but have not lived in them for the past 36 months may still qualify.
Existing Homebuyer: Tax Credit Amount = up to $6,500. This is for current homeowners that have lived in their current home for at least 5 years. So, if you purchased your home 2 years ago you would not qualify.
Military Bonus: If you served in our military for more than 90 days outside of our boarders, you get a one-year extension and have until 2011.
Income Limits: The tax credit begins to phase out for a single person that makes more than $125,000. For married couples it phases out at $225,000.

As always, please let us know if you have any questions.