NEW RESPA CHANGES GOING INTO EFFECT

OMG - It's going to be a nightmare come January 1st.  I know it's supposed to HELP buyers and save them hundreds, but it's actually going to cost them money.  I don't think our elected officials really understand how these new rules are going to affect things.  I'll be the 1st to say there were a lot of predatory lenders out there and they needed to implement change.  Evil people will always find a way to be evil, don't penalize everyone for their actions.

With these new rules, I, as a lender, will most likely end up paying for things I have no control over.  I have to "estimate" what I think costs will be and there can be little or no change from my estimate to the final closing figures!  I know what MY figures are, but I don't know what a seller's title insurance will cost when I meet with a buyer. 

These changes will result in lenders severely OVER ESTIMATING costs just to make sure they don't end up paying the difference if costs of others involved in the loan come in higher. 

Buyers are supposed to take the estimate from one lender and SHOP with several others.  To effectively shop with a lender we have to know what your credit score is, and each time a lender checks your credit it lowers your score.  The rate you get is dependant on credit score and if people are out checking with several lenders this could, in all reality, cause their score to lower to where they can't get a mortgage. 

What it all boils down to is talk to people, find out who they trust and would refer you to, and DEAL WITH A REPUTABLE LOAN OFFICER who's been in the lending business for years like I have. 

I've seen a lot in 23 years of lending.  I have always quoted people high on closing costs.  One of my pet peeves has always been lenders who will under-estimate the costs to trick borrowers into going with them because their costs are higher.  One thing the new changes will do is stop this.  If they underquote, they pay the difference!

Here's to a challenging and great 2010!

Short sales ad how they affect you in the future

If you are selling your home with a short-sale (your lender agrees to take less than you owe to allow you to sell the home) you may not be able to purchase another home for at least 3 years after the short sale.

One of the catch-22's to short sales most of the time is that a lender won't approve a short-sale unless you are delinquent on your loan. 

If you go to buy another home after 3 years, one of the requiremnets to qualify is you were not late on your payments.  There in lies the catch 22!

MORTGAGE TAX CREDIT - 4 MONTHS LEFT!

Do you want to qualify for the $8,000 or $6,500 homebuyer tax credi?  Don't wait too long, you have to find a home and have your offer accepted by 4/30/2010. Now this may seem like a long time, but it will go fast. Don't find yourself waiting till the last minute. Give me a call to see if you qualify for one of these credits and get your loan pre-approved today.

I doubt they'll extend this tax credit a 2nd time!

Have you owned your home for 5 of the last 8 years? You're not a 1st-time buyer, but you may qualify for $6,500 buyer credit.

I'm here to help.

Jolyn

HOMEBUYER TAX CREDITS: $8,000 OR $6,500

DON'T WAIT TILL 4/30 TO GET YOUR OFFER ACCEPTED! The Homebuyer tax credit, part of the stimulous package, was extended and MODIFIED. It extended the possible $8,000 tax credit to people who have not owned a home in the past 3 years. It also expanded and repeat buyers who have occupied a principal residence for 5 consequtive years out of the last 8 years may qulaify for $6,500 if they buy a home to occupy. Offers to purchase must be accepted by 4/30/2010 and the loan can close no later than 6/30/2010. With the changes in the mortgage industry, don't put it off - find that house now. We used to close loans in a couple days, now it takes a couple months. That doesn't mean it can't close in a few weeks, but MURPHY'S LAW is running rampant. Plan on 2 months! Call me 608-498-1959 to start your loan application today!

HELP GET THE WORD OUT - $6,500 REPEAT BUYER CREDIT

When they extended the tax credit for 1st-time buyers (buyers who haven't owned a home in the last 3 years) they amended it to include a $6,500 credit to qualified buyers who have lived in a home as their primary residence for 5 of the last 8 years. That means if someone owns a home they've lived in for 5 years, they can sell that home, purchase another home and get a $6,500 tax credit. This is a great opportunity for people who want to down-size, move up to a bigger house, or buy the home of their dreams. Help me get the word out. Their offers to purchase have to be accepted no later than April 30th and the loans have to close by June 30th to get these credits. Call me if you want to find out more. 608-498-1959.

Seems like borrowers aren't buying

Rates are awesome and inventory of listings is great. You've got till the end of April to get your offer accepted and you have to close by the end of June to get the $8,000 or $6,500 tax credits.

Up to $8,000 for borrowers who qualify and haven't owned a home in the past 3 years.

Up to $6,500 for borrowers who have lived in their home for 5 consecutive years out of the last 8.

Don't wait till last minute. It's getting impossible to get a mortgage closed in 30 days. It's taking more like 45-60. If you miss these cut-off dates, there's no exception. I'd hate to see you miss it by one day. Start home-shopping now.

If you know anyone who's thinking of buying, tell them to get in touch with their lender (preferrable me) right away. Better safe then sorry.

I'm here for you!


Jolyn - Mortgage Expert
Universal Mortgage>

DON'T WAIT YOURSELF OUT OF THE MARKET!

What a bright and cheery day in Wisconsin! Hope everyone made it home safely if you drove Wednesday. I stayed home.

If you or anyone you know is holding off on buying a home, my advice is DON'T WAIT!

It's going to get tougher before they ease up on guidelines. The mortgage guidelines are still tightening, shutting buyers out who may have qualified a month ago. Minimum credit scores on FHA loans with me have gone from 620 up to 640 and some lenders are requiring 670.

Waiting is not a good idea these days if buying is in your future. You could qualify for a loan one day and the next you're out of luck! FHA guidelines, which had been the same for years and years are changing fast like other loans.

All aspects of loans are being looked an analyzed to find reasons not to loan. Get in and see your mortgage lender today (I'd love to be your mortgage lender). If you plan on taking advantage of the stimulus money, you need to have your offer to purchase a home accepted by the end of April and close by the end of June. I wouldn't push it to the last day, as it's getting harder and harder to get a loan closed fast. Don't wait - Rates are awesome, and you may qualify for a tax credit of $8,000 if you haven't owned a home in 3 years, or $6,500 if you have owned and occupied a home for 5 of the last 8 years. Call me today, 608-498-1959.

$6,500 tax credit for repeat buyers

Why isn't anyone talking about the repeat buyer tax credit of $6,500? Now that's news!

Call me for details 608-498-1959

Jolyn