Time Can Cost You

Click on the title to link. This is an interesting article about the potential money lost if you wait for the market to "bottom" before buying. The money lost here would be in the form of a higher down payment because of an increased home price. The bottom line (no pun intended) is don't get greedy. The market is so down that now is the time to buy a house. And with rates as low as they are, it is the perfect storm (as we have said before).

If you need a Realtor then you need to call us first. Do not use somebody unless they are referred by someone you trust.

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.

Dream of Home Ownership Fading?

Click on the title to link. Here is a sad article about how many folks are thinking they will never be able to own a house. We think most of this is because people do not understand their options. When you here nothing but bad news about real estate in the news then it is going to ware on you. However, many of those who think it is unreachable just do not understand the process and what they can do.

If you are in that boat, or know somebody who is, then let us know because we can sit down and at least show you options. You have to window shop before you can buy. The first step to that is to see what stores are even open for your business. Make sense? We are here for you and anybody you may know.

The Depressed Real Estate Market

Click on the title to link. This is a good article about how the real estate market is not budging despite the fact that rates are at 50 years low. This is not surprising since we saw that the last round of first time buyer incentives really did not do a whole lot to stimulate the market. The fact that rates this low is not moving the market is not a good sign. It shows that people are sitting back and waiting to see what happens, mainly because of our current Administrations fiscal policies (in our opinion). We have been saying that reports of recovery have been grossly overstated; this is a great example of why.

Want to Sell? Slash The Price

Click on the title to link. This is one of those subjects that nobody wants to hear, but you need to if you are in this boat. Selling your house can be a very emotional experience. Forgive us for this statement...get over it!

You have heard "it is what it is"? Well, it is what it is, and what it is right now is a really horrible market to sell. You will not get out of your house what you think it is worth right now. Buyers are all about feeling like they got a screaming deal. They are not looking for fair, they smell blood and they are going in for the kill. Sound too harsh? Trust us, we see it all the time.

You have two choices when you list your house:
1. List it for what feels good and you think it is worth, and then let it sit there for a log time.
2. List it for what the market will bare, and actually sell it.

Reality is a bitter pill to swallow. Just take your medicine and remember that you are probably going to be on the flip side next when you go buy a house. And this is what we remind people of; it works both ways. So, hopefully, your net out is the same as it would have been. You get less for your house, but you pay less for the next. It does not always work like that (of course), but that is the hope.

Buying A House?

If you or anybody you know may be thinking about buying a house then we wanted to offer you a free resource we give to our clients. It's an informative 82 page book to help you through the buying process. And remember, we are always just an email or phone call away. Click on the title to link to our website, scroll down just a bit, and you will see it on the right side of the page.

Fannie Mae's (the US Government's) New Rule

We just learned that, effective June 1 (thanks for all the warning, huh), any loan done as a Fannie Mae loan (which is most of them) will require a second credit report be pulled just before the loan funds. Which means that they are going to pull another report after your loan actually closes, but before they release the money to the title company.

They are doing this to ensure that you have not acquired any more debt since the process started. Seems fair, right? Well, as with almost anything the government touches, it is poorly thought through.

When your credit is pulled again you are going to get dinged, again, for the inquiry. What if your score was borderline for you getting a program and/or rate betterment, and your score now drops below the acceptable level for that? Does your rate now change? What if you don't qualify for the program now? Do we have to start all over? Or, worse yet, do you lose the loan? We are not sure how they are going to handle these situations, but they are going to have to be addressed. Stand by...

How To Choose A Mortgage Broker

Click on the title to link. The Mortgage Broker industry continues to be hit hard by folks who just want to see it go away. It begs the question, "Why, and who is behind it?" The simple answer is that the banking lobby is heavily behind it because they want the competition illiminated, especially as our government pushes forward to also rid us of the small, local bank (they are clearly pushing for a few huge banks where the government can interfere). Enough for now about our political bent...

This article sounds good in the title, and has some good tips in the body also, but, once again, completely misses the overall point. It is funny, and amazing, to us how these are written from such a biased stand point. Why is it that the questions posed in this article should be asked of a Broker and not a bank? Do you honestly think that a bank has your best interest in mind, or more so than a Broker? You should be asking these type questions of ANYBODY you work with for a mortgage, whether bank of broker.

Here are some examples pulled from the article:

1. "Does this person speak to me in plain English? Or are they using a lot of jargon? If you can't connect with a mortgage broker, then that's a red flag." Well at least we all know now that this does not apply to a bank. Are you kidding me? So if the bank if speaking a "foreign" language and you cannot connect then it is OK? No wonder we had a mortgage debactle with people writting articles like this.

2. "The best brokers act like financial planners, Guttentag says, taking into account your total financial situation and goals when trying to match you to a mortgage." Yes, and Amen. Look at all our previous posts and you will see this is what we have been saying from day 1. But, once again, what about the banks? If you think for one minute any Loan Officer in a bank is working with this in mind then you are completely delirious. They get paid whether they see you ever again, or whether they do a good job or not. If we don't treat you better than anybody before, and earn your referrals, then we have no business. Whose more motivated to work with you as described here? Obviously we are, the "worthless" broker.

The bottom line is this, banks and the liberal media want you to believe that brokers are more risky. That is funny. We continue to serve people the same way we have for over 8 years. Why are we still here? Because we know how to treat people, how to serve them, and it drives us insane if a client is not a raving fan. You think a bank thinks like that? Think again. If this article were unbiased and well researched and written, the title would be "Who To Trust With Your Mortgage". Whether you are working with a bank or broker, you had better be working with somebody you trust (and the institution or company is not what you should be trusting).

This brings me to my final point...why on earth would you ever work with ANYBODY who you were not referred to? You can ask all these questions until you are blue in the face. And we guarantee you that anybody can fool you into thinking they are something they are not becuase they know the lingo. If you work with anybody other than somebody you were referred to by a trusted friend, family or co-worker then let the dice roll because you are gambling. If that if for you, then we are not your company. If it is you then welcome home.

Home Sales Slide at 40 Year High

Click on the title to link. There is also an associated video you can view that, for some reason, we could not embed.

Mortgage Terms Now In Plain English? Funny.

Click on the title to link to this ridiculous article.
Oh my, where do we start? This could be one of the most uneducated articles we have read in some time. This is just the latest example of part of the problem..people like James R. Hagerty with the Wall Street Journal who write articles as if they actually know what they are talking about. I guess "investigative reporting" is a lost art form these days.

I have a question, has anything the government ever come up with "simplified" the issue? Please, I beg you, let me know if you can think of one. This is yet another example of people coming up with a "solution" who now absolutely nothing (and that is not overstated) about what they are trying to fix. The issue is not fees changing at closing. The issue is that our industry is full of idiots who have no ethics and, therefore, get away with it. How do they get away with it? Because nobody governs the established "laws". So what's the answer, according to the government, well let's create a "simplified" form that the lenders and brokers have to "commit" to. But let's not make them actually show how they get the numbers. Let's instead hide the details and only show the consumer the number the lender and brokers have to "commit" to. Make sense? Hardly.

This new GFE (Good Faith Estimate) is undoubtedly the dumbest, most confusing form we now have to deal with. It is so confusing that we are going to be using the old GFE to explain the new one. We continue to stand utterly amazed at how these dopes in Washington come up with this stuff without so much as consulting people who actually know what they are doing. Is it really that difficult? Instead they have come up with a form that goes from one to three pages, shows no detail, does not give the PITI (Principal, Interest, Taxes and Insurance) payment anywhere, encourages to shop instead of working with people you actually have been referred to and trust, and clarifies one thing...nothing.

So just know that we are here to help walk you through the, now, more confusing and less understandable mortgage process. And remember this, we are 100% referral because we treat people the way they should and want to be treated. If lenders and brokers did that then the need for stupid forms like this would not exist. Don't kid yourself into thinking this form "protects" you. Forms and rules will not protect you (trust us, we see it all the time from people who come to us from other places). All that will protect your interests is working with a company, like Premier Choice Mortgage, that will actually do what is in your best interest and not their own.

Details on the New, Extended Tax Credit

Click on the title to link. As you probably know by now, the Feds have extended the tax credit. Additionally, they broadened the net to include existing homeowners who meet certain guidelines. Read this helpful article to get the "down low".

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.