"Home Alone" House For Sale - Only $2.4 Mil!

I've always said that when I finally get rich enough to spend millions of dollars on a house I will buy the one from Ferris Buellers Day Off, but now I'm not sure.  Why, you ask?  Well, the home used in the movie Home Alone is officially on the market. 

Listed at $2.4 Million, the property is located in Winnetka, Illinois (which is a suburb of Chicago) and was built in 1920 and boasts a whopping 14 rooms.  Marissa Hopkins, the listing agent (lucky) with Coldwell Banker Residential Brokerage firm in Winnetka, says that they are only showing the home to qualified borrowers.  So if you would like to buy the house please let me know.  I would absolute LOVE to do the mortgage on this place.  :)  Here's some pictures to appease the masses:

 Source: http://thechive.com/2011/05/06/home-alone-house-for-sale-lets-take-a-peak-inside-25-photos/

NAMB Lawsuit Fails…Compensation Rule Becomes Law April 1

The dreaded Loan Officer Compensation Law, which is a very heated debate right now in the Mortgage Industry, officially went into effect yesterday.  This new rule will change almost everything about mortgage lending, so if you are looking to buy a house please don't hesitate to call us for more information.

We can walk you through the new mortgage process and get you into a home you love, and a loan you can afford.  Call 817-527-3164 or email mpate@wewalkyouhome.com for more details.

Click the link below for even more information: 

NAMB Lawsuit Fails…Compensation Rule Becomes Law April 1

I think this is cool. Now we can spend money at baseball games 4 times faster!

Forensic Mortgage Audits: For Real or For Fraud?

Back in 2008, as the United States and millions of homeowners faced the real estate crisis, a multitude of new companies across the country came out of nowhere offering loan modifications and “foreclosure rescue services”, which aimed at helping consumers that were behind on their home loans.   On the verge of default and foreclosure, desperate homeowners flocked to these companies hoping to keep themselves out of trouble, and also hoping to keep themselves inside their homes.  Sure, some of these companies were legitimate, but many many more were not, and in turn they ended up ripping off literally thousands of Americans across the country that were struggling helplessly. 
 

Then, in 2009, the government stepped in and for the most part shut down many of the firms that were fraudulently offering these loan modifications to the public.  All was well (for a while) until a new scam recently came about……Forensic Mortgage Audits.  

Just like the Loan Modifications of the past, these loan audits claim to help consumers out of their mortgage troubles by identifying any illegalities performed by your lender, broker, or other parties in conjunction or associated with the mortgage you obtained.  Thus, in theory, forensic mortgage audits should be very helpful to homeowners. 

Unfortunately (and regrettably) not all of these companies that make themselves available to you are actually qualified to provide audits.  In fact, most loan audits these days are offered or performed by people without any legal training or attorney backing at all.  These fraudulent businesses exploit consumers by selling mortgage loan audits that require you to pay a large upfront fee in exchange for a review of your mortgage to see if your lender complied with mortgage lending laws.  They claim that if it turns out your loan was funded unlawfully you might end up being entitled to compensation, a refund of all interest and principal payments made for the last three years, all non-recurring closing costs, legal fees, or a renegotiation or modification of the terms of the loan. 

But here’s the kicker.  The FTC says it has found no evidence whatsoever that forensic loan audits will help you get a loan modification or any other foreclosure relief.  In fact, the FTC even goes as far to say on their website that:

“Nothing could be further from the truth…according to its law enforcement officers:

•    there is no evidence that forensic loan audits will help you get a loan modification or any other foreclosure relief, even if they’re conducted by a licensed, legitimate and trained auditor, mortgage professional or lawyer.
•    some federal laws allow you to sue your lender based on errors in your loan documents. But even if you sue and win, your lender is not required to modify your loan simply to make your payments more affordable.
•    if you cancel your loan, you will have to return the borrowed money, which may result in you losing your home.”

So what can you legitimately do for help if you find yourself behind on your mortgage and facing the possibility of foreclosure?  The best thing you can do is stay in touch with your loan servicer or lender.  Whoever holds the note to your home would definitely rather work with you than have the property foreclosed upon.  Many lenders will even offer you the chance to negotiate a new repayment schedule to get you back on track. The FTC also tells us that if you do decide to pursue a mortgage audit or any foreclosure relief system, make sure to BE CAREFUL, and avoid any business that: 

•    guarantees to stop the foreclosure process – no matter what your circumstances are
•    instructs you not to contact your lender, lawyer or credit or housing counselor
•    collects a fee before providing any services accepts payment only by cashier’s check or wire transfer
•    encourages you to lease your home so you can buy it back over time
•    recommends that you make your mortgage payments directly to it, rather than your lender
•    urges you to transfer your property deed or title to it
•    offers to buy your house for cash at a fixed price that is inappropriate for the housing market
•    pressures you to sign papers you haven’t had a chance to read thoroughly or that you don’t understand.
 

Also, if you think you’ve been in contact with a foreclosure fraudster, contact:

•    Federal Trade Commission – www.ftc.gov
•    Your state Attorney General – www.naag.org
•    Your local Better Business Bureau – www.bbb.org
 

Resources:  http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt177.shtm

Fort Worth News: Cafe Brazil is coming to town!

Per the company's website (http://cafebrazil.com), the famous Dallas restaurant Cafe Brazil is opening up a new location in Fort Worth come mid march! This is great news, as this place is just plain delicious!

The website says that the new location will be "on TCU campus" but the address they give would put it right down the street from Fuzzy's, on Berry.  I guess we will find out which one is correct soon enough.  Keep tuned in for further details, or you can keep checking the companies website for more information.

http://cafebrazil.com/2010/12/cafe-brazil-is-coming-to-fort-worth/

How would you make real estate investments in the United States easier?

This week, our guest blogger Daisy joins us to talk about real estate investments in the United States.  Enjoy!

The real estate business is not for everyone. It is a highly volatile market. There are constant fluctuations in the industry and prices rise and fall at regular intervals. It is not really that easy to plan an investment in, lets say, the San Jose real estate industry, or even here in Fort Worth. Individuals normally use agents to take care of their real estate needs. How would it be if someone makes it easier for you to manage your real estate issues? 

Generally, a typical real estate investment is divided into 3 main issues. You may want to follow the basic steps in order to make your estate investment a successful venture, even if you happen to find yourself in San Jose instead of Fort Worth. Registration may be easier for landowners that have rights of ownership on land. You or any investor may like to follow certain simple steps in order that your investment becomes worth it. An investment in San Jose real estate is perhaps the greatest investment anyone in the state would make., just like Fort Worth, TX.  It is probably an investment for a lifetime. If you are a visitor from another land, then you may find it a little difficult to buy land in San Jose or Fort Worth, but with few simple steps you could make it worth a try. When you are from a foreign land, language can become a barrier. In addition to this, you may also be unaware of the laws that govern the San Jose real estate market. You must first find out the rules and regulations before buying any kind of property in the state.

As a buyer, it is very essential that you understand the detailed process of buying. So, get some professional help if needed and learn the ropes of San Jose andFort  Worth real estate buying and selling to make things smooth. There may be different types of properties like house, time shares, condominiums and others. If you want to buy property then you must have good knowledge about the type of property you want to invest in. In addition to this, the rights related to the property must be known. You must also be aware of the detailed process of purchase and the fees that may be payable. You may also want to assess the strategies for protecting your investments.

Stop throwing away your money! Use NWBO to sell your home!

HOW YOU ARE GETTING OVERCHARGED FOR ANTIQUATED SERVICES

 

One of the most little known facts about the real estate market today has to do with realtors themselves and the insane commissions they make from selling houses.  The fact is, 20 years ago realtors served a quality purpose.  They found houses for buyers, sold houses for sellers and made offers on both sides behalf. 

For doing so, realtors usually charged around 3% of the sales price in commissions to both parties (that's 6% total).  The problem with this is that it was 20 years ago, and since then, the internet and technology has changed the real estate game in unimaginable ways.

Nowadays, if you are selling your home, you will be paying a realtor 3% of your hard earned equity (the money you have  in your home, built up through your mortgage payments) to a real estate agent who really isn't doing anything at all. Why would you do that?  What alternative do you have?

WHAT ELSE CAN YOU DO?

That's where NWBO comes in.  Nation Wide By Owner (NWBO) takes a flat fee (usually around $399) and lists your home on the internet, gives you one of our BRILLIANT YELLOW SIGNS for outdoor exposure, and even ASSISTS YOU WITH THE PAPERWORK. In fact, they even have ON SITE MORTGAGE PROFESSIONALS that will do all the financial work once you find a buyer for your home.

By doing this, you can save up to 6% of your total equity.  How much is 6%? Well here's an example.  Let's say your home sells for $200,000.  You can do one of two things.  You can either sell your home with NWBO for $399, or you can pay $12,000 out to realtors for doing the same job.  That's right.  $12,000.  You can keep it or you can throw it away.  The choice is yours.

SO the question is, why WOULDN'T you use NWBO to sell your home?

HUD Offers Homes in DFW for 50% Off List Price

Today’s real estate market represents one of the most affordable time in history to purchase a home, due to low mortgage rates, discounted prices and government incentives.  Add in the recent rise in foreclosures, and it is not uncommon to see buyers get up to 20% off the purchase price when they make an offer on a new house.

Some fortunate buyers, though, are getting up to 50% off the purchase price due to a new incentive called the Good Neighbor Next Door Program, which offers qualified borrowers the opportunity to buy HUD homes in approved neighborhoods for half off.  That’s right, half off.  To make these HUD homes even more affordable, buyers can apply for FHA-insured mortgages that require down payments of only $100.

WHO GETS THE DISCOUNT?

So who exactly qualifies for this excellent (and almost too good to be true) opportunity? HUD tells us:

“Law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD's Good Neighbor Next Door Sales Program.  HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home.”

Why would they do this?  The purpose, is “to strengthen communities by encouraging employed, professional law enforcement officers, teachers and firefighters/emergency medical technicians to live in the community.”

ARE THERE ANY STIPULATIONS?

So what’s the catch?  The main requirement for the discount is a guarantee that you will occupy the home as your primary residence for at least 3 years.  After the 3 years have passed you are free to do whatever you want.  In fact, after you buy the home and live there for the full time period, you can legally sell it. All of the profit and equity from the sale are yours to keep! This means that not only is the program a great way to break into homeownership for people who otherwise couldn’t afford it, but it is also a great way to build up equity and make some money in the process.  Oh, and you can even refinance the mortgage down the road if it happens to be to get a lower rate or even to make repairs.

The other main requirement for the program has to do with the house itself.  Qualifying properties must be located in HUD approved neighborhoods, meaning you can’t just go out and find any house you would like.  Don’t worry though, qualifying neighborhoods are located all across Texas, including many areas in DFW.

Want to find out if you qualify for this type of loan?  Are you interested in seeing which properties qualify as approved neighborhoods?  Feel free to CONTACT US and we will get back to you as soon as possible. The department of Housing and Urban Development updates the areas which are eligible quite frequently, so if you can’t find something you like immediately just give it some time.  You can also visit HUD’s website for more information.

Obama to Bail out Homeowners in Dallas Fort Worth?

News from Washington is that very soon President Obama might order Fannie Mae and Freddie Mac (who are government controlled) to bail out homeowners who currently owe more than their property is worth.  This is an astounding development, as there are literally millions of Americans in this position right now.  As a matter of fact, a total of (approximately) 15 million mortgages in the United States are currently in a state of "negative equity" which equates to about 1 in 5 homes.  Wow.

What does this mean for Fort Worth and Dallas?  It means that if you are in this situation, your neighbors (and pretty much every taxpayer) may soon be footing the bill for your mortgage.  It also means that if you are currently waiting to refinance your loan, or if you are in the process of getting a new home, you might want to speak with your loan officer and see if they advise locking in your interest rate.  Some analysts are predicting a massive jump if this bill ends up getting passed.

As always, we will keep you updated on the progress of this situation as details come available to us.  If you have any questions about it, or if you are interested in getting a mortgage, don't hesitate to CONTACT US and we will get back to you as soon as possible.  

USDA Rural Development Loans ARE BACK!

As of yesterday, the US House of Representatives passed a new bill (HR 4899) which includes additional funds for the Rural Development Loan Program.  This is HUGE news, as many many of these loans have been put into suspense over the past several months, or have been waiting for "subject to" commitments, which has been keeping them from closing, and not coincidentally, people from moving into their new homes.

These additional funds will also be available for consumers looking to purchase new homes, although there is one small change to the previous requirements for qualifying.  People are still eligible for the ever popular 100% financing the USDA RD loan offers, but the up front Funding Fee has been increased from 2% to 3.5%.  This is small potatoes considering that this funding fee can be rolled into the loan amount, so you don't have to pay for anything out of pocket at closing (theoretically).

If you have questions about the USDA Rural Development loan, or what properties in Fort Worth or Dallas qualify, don't hesitate to CONTACT US and we will review your situation.  Don't miss out on this great opportunity!

Time is Running Out to Refinance in Fort Worth-Dallas

This is going to be short and sweet, but I figured it is worth noting that this refinance boom we have been experiencing lately could be coming to an end very very soon.  Why?  Well, if history is to be our guide, we could be at the apex right as we speak.  And you can't get any better than the apex.

For example, from April to July rates have been dropping quite steadily, but for the last several weeks they have leveled out, and don't seem to be dropping again.  In fact, all signs point to rates going back UP before we see any type of drop again.

What does this mean to you?  It means that if you are on the fence about refinancing your mortgage you should take advantage of these low rates NOW before they go back up.  This is the best we have seen since 1972, and if you don't feel like waiting another 40 years you should CONTACT US as soon as possible.

We can get your loan refinanced faster than you could even imagine. OK maybe not faster than you could even imagine, but I can guarantee you it's quick.

Buying HUD Homes - A Simple Guide

The following information is provided in effort to give you an introduction on HUD homes, and how they can be purchased by you as a consumer.

WHAT IS A HUD HOME?

In its most basic sense, a HUD home is a one to four unit property (residential) that is foreclosed upon and then acquired by HUD, who in turn offers it for sale to recover any loss it may have incurred on said foreclosure claim.  The houses are then sold to the public through internet listing sites that are ran by property management companies who are under contract from HUD.  CLICK HERE for local Dallas-Fort Worth HUD home listings.

HOW DO I GET ONE? 

If you find a property you like, just notify your real estate agent who can make an offer for you on your behalf.  HUD will even pay the real estate agent’s commission (if it is included in the purchase contract).  If you need a real estate agent just contact us and we will find the best one for you!

WHAT ABOUT PRICE? 

Based on the most recent appraisal, HUD homes are offered for sale at fair market value.  In general, HUD homes are put on the market and sold during a particular time, which is known as the “offer period.”  Many different borrowers or investors may submit their offer during this time period, at the end of which the most desirable offer is accepted.  If none are accepted then the property will be continued for sale on an indefinite “extended” basis. In the end, the mortgage broker or real estate agent will be notified within 48 hours of HUD’s acceptance of any offer.

WHAT ABOUT GETTING FINANCING? 

In order to buy a HUD home, you must do so by paying cash or by obtaining financing through a traditional mortgage broker or loan officer.  In order to bring the least amount of money to closing, you would need to obtain financing from FHA, which (luckily) is possible on HUD homes.  HUD does not provide direct financing to buyers of HUD Homes, so if you need to get qualified for an FHA loan (or any other type) just CONTACT US and we will get back to you as soon as possible.  

WHERE CAN I LEARN MORE ABOUT HUD PROPERTIES?

Luckily, any single family residence available that is acquired by HUD will display a sign that should identify the company who is listing the property.  You can also see internet listings HERE.

How to Find Foreclosures in Dallas-Fort Worth

For the second straight month, the number of foreclosed properties across the United States jumped to a record level, according to RealtyTrac.com.  The total number of repossessions is estimated to be as high as 93,000 across the nation.

This is somewhat surprising, being that April was the first month in recent history where the number of foreclosures actually fell from the previous month.  Long story short, this behavior is indicating somewhat that the overall number of foreclosed properties has peaked.  Only time will tell, though.

BENEFITS OF BUYING FORECLOSURES

According to the National Association of Realtors, the typical discount received from purchasing a distressed or foreclosed property is on average around 15 percent.  That’s amazing, as long as the condition of the property isn’t deplorable.  Why does this matter?  Generally, to receive financing for a home, the property has to meet certain conditions and requirements in regard to its physical state.  Bad roofs, wiring or plumbing all represent types of defects that would make a property essentially “un-lendable.”  So unless you are planning on paying with cash, you’re going to have to get an appraisal or in depth inspection to see if the property will meet lenders requirements of livability before you purchase.

DIFFERENCES BETWEEN BUYING A FORECLOSURE AND A TRADITIONAL PROPERTY

The main difference between buying a foreclosed property compared to a traditional home is that the home itself is owned by the bank, or lender.  Luckily for you, banks are much more eager to sell their foreclosures as soon as possible in effort to save money on taxes or other operational costs associated with home ownership, or in their case, management.

Another difference you will notice is the actual loan application process.  Even though legally you can work with any lender or loan officer you choose, often the bank who owns the house will require that you get pre-approved with their institution before they will accept your offer.  Overall they just want to be doubly sure that you can afford the house before they sell it to you.  Luckily though, you are still free to use any lender you choose once the process gets started.

Last of all, the bank who owns the house will likely require that you put more money down when you make an offer.  Known as “earnest money,” this compensation is paid at the time of closing to show that you (as the buyer) are serious about following through with your contract.  With foreclosed houses, you can expect to write a check for at least $500.

WHERE TO GET STARTED

Lucky for you, the process of buying a foreclosure starts the same place as a traditional home, which is getting pre-approved.  As mentioned earlier, the bank wants to make absolutely certain that you can afford to make the payments on the house before they go into negotiations with you.  They start by having a loan officer see how much you qualify for, as well as giving you estimates on closing costs or monthly payments so you know what to expect in regards to money issues.  This is totally normal, and will preemptively make sure that you don’t get into a mortgage that you can’t afford.

So, if you have any questions about the foreclosure process or getting pre-approved, don’t hesitate to CONTACT US and we will get back to you as soon as possible.  

All About HELOC's (How exciting!)

One of the good things about having a mortgage is the ability it gives you to build up equity in your home.  What's equity you ask?  Well, you can click here or I can tell you really quick.  Quite simply, equity is the amount of money you have already paid against the value of your home, and it is an easy value to determine with a little bit of math.

 

HOW TO DETERMINE YOUR EQUITY

The easiest way to find out how much equity you have in your home is to subtract the amount of your mortgage balance (look on your mortgage statement for UPB, Unpaid Principle Balance, or just Principle Balance) from the current value of your home.  For example, if your home is worth $100,000 and you owe $40,000, then your equity is $60,000.  In other words, as you pay down the principle on your mortgage, your equity increases inversely.

HOW DOES EQUITY WORK FOR YOU?

What makes equity special?  Well, equity can actually work for you if you know how to do it.  Many people borrow against it and use the money they take out to pay for things such as home improvements, investments, or even paying for a child's college tuition.  Other people use the money to purchase additional properties and, in turn, make even more money.  Nice.

Long story short, having a lot of equity in your property is a great thing, especially if you are all of a sudden in the need for cash.  But how do you actually get the money out to pay for things?  Well, that's where the HELOC comes into play. 

HOW DOES A HELOC WORK? 

Opening a HELOC (which stands for Home Equity Line of Credit) allows you to access the built up equity in your house for when you need a quick influx of cash (without having to refinance your entire mortgage).  Let's say you fall and break your arm, or your daughter needs braces.  Or maybe your car broke down and you need a few thousand dollars to pay for repairs.  A HELOC can give you the cash you want (your cash) to pay for the things that NEED to be paid.

The HELOC you take out functions basically like a second mortgage on your home.  Because of this, the interest rate you pay will be a little higher than that of your first mortgage.  This is common, being that second mortgages are traditionally more risky from the point of view of the lender.  Different factors can determine how much interest you pay, though.  Quite simply, the rate you get is also mostly determined by the amount of equity you are cashing out.  The more equity you take out, the higher your interest rate, and vice versa.

A LITTLE MORE INFO

Fortunately for you, there are quite a few different types of HELOCS available to you as a consumer and homeowner.  Just like a traditional first mortgage, you can get a HELOC with a fixed or an adjustable rate.  You can do it as a regular line of credit, or you can take out the entire amount in a lump sum.  You can also do a bit of both.  You can write checks from the HELOC (like a bank account) and some lenders will even grant you a debit or ATM card to use to make withdrawals too.  You've got lots of options is what I'm saying.

In conclusion, whatever your particular needs may be, there is more than likely a HELOC out there for you.  They can really help out in times of need, and the more people that are educated on their benefits the better.

If you would like to see if you qualify for a Home Equity Line of Credit, don't hesitate to CONTACT US and we will get back to you as soon as possible.  

FNMA Won't Secure Loans On Foreclosed Properties Still In Redemption Period

On May 27th, FNMA released a new guideline that will make it a bit harder for people to purchase foreclosed properties.  The new rule states that FNMA will not buy or accept a loan on a foreclosed home that is still in its "redemption period," the length of which is specified by each particular state.  For example, the redemption period in California is 12 MONTHS LONG.  Wow.

WHAT DOES THIS MEAN?

Long story short, certain states have laws on the books that provide tenants with a "redemption period" that starts after a foreclosure or tax sale has occurred.  During this time period the tenant or owner can reclaim title/ownership to the property if they pay all the amounts they owe.  This new rule mandates that the house cannot be sold to FNMA during this time period.  How are they doing this?  Well, FNMA is declaring houses that are still in the redemption period to be specified as having "unacceptable title defects."

Furthermore, any loan with an unacceptable title defect is deemed ineligible for delivery or sale to FNMA until after the redemption period has officially expired.  Whew.

FYI, loans are still ineligible for delivery to FNMA if you purchase additional insurance or a redemption bond. Nice try, though.

WHAT ABOUT TEXAS AND DFW?

Luckily, (for our sake) Texas doesn't have an officially mandated redemption period we have to follow.  This means that FNMA will still buy and deliver loans that were recently foreclosed here.  That being said, if you are planning on relocating from the Metroplex to out of state (and looking to purchase a foreclosure) it would be worth researching how long exactly the redemption period is for where you're moving.  CLICK HERE for a list of each State and its applicable laws regarding foreclosure.

HOW DO I GET AROUND THIS NEW LAW?

The best way to bypass this requirement is to get a home loan with either FHA, VA or even Freddie Mac, for as of now they haven't adopted any new guidelines regarding the redemption period.  This could change though, so we will keep you posted if we hear anything.

In the meantime, if you have questions about the foreclosure process, or even just getting pre-approved for a home loan, don't hesitate to CONTACT US and we will get back to you as soon as possible.  

Now Is The Time To Refinance In DFW

I know I mentioned this last week, but it really is worth noting another time that interest rates here in DFW are at record lows.  So, actually how low are we talking?  Well, some people are claiming that this is the lowest we've seen rates in over 30 years.  That's right, 30 years.  To top it off, just last month home sales went up almost 8%, and the average home price also increased in the amount of 4% from last year.  Obviously this change is being driven by something, but what exactly is it?

CONTRIBUTING FACTORS TO HOME SALES

The most obvious answer to this question would be the ever popular $8000 tax credit, which actually expired earlier this year.  Experts agree that this credit pushed first time homebuyers into purchasing a home before the credit was gone.  In order to qualify, buyers had to sign their real estate contracts by April 30 -- and they still have to close on their home by the end of this month, June 30th.  So we could still see figures rise as we reach the full expiration of the tax credit.

CONTRIBUTING FACTORS TO LOW INTEREST RATES IN DALLAS-FORT WORTH

Would you believe that the financial status of Europe would have an effect on your interest rate?  Well it does, as surprising as that may seem.  Experts claim that the overall financial ailment in Europe is actually providing unexpected benefits to the United States economy, as foreign investors are putting more of their money into our Treasury Bonds (which are historically a safe haven when it comes to investing).  Long story short, treasury bonds are directly related to mortgage interest rates, and this burgeoning demand has driven up the price of bonds, and inversely, interest rates.

WHAT DOES ALL THIS MEAN FOR YOU? 

Overall, this means that if your interest rate is over 6% it might be a good time to refinance your loan and get a lower payment.  This can save you a substantial amount of money over the long run.  The easiest way to find out if a refinance would benefit you is to determine what is known as the "BREAK EVEN POINT."

HOW TO DETERMINE YOUR BREAK EVEN POINT

The easiest way to find out if you should refinance is to take your closing costs (everything you need to pay to actually do the refinance) and divide it by amount of money you will be saving each month with your new lower payment.  The end result of this will represent the number of months you will need to stay living in your home in order for the refinancing to make sense financially.  If it takes you 5 years to make up the savings, but you don't plan on living there more than 3, then the refinance doesn't make sense, and vice-versa!

If you would like us to do a FREE BREAK EVEN ANALYSIS don't hesitate to CONTACT US and we will get back to you as soon as possible.  

Interest Rates in DFW at Record Lows

As a loan officer, I hate it when I hear commercials on the radio every day blabbing about how low interest rates are, knowing that these companies are really just using the old "bait and switch" technique through their advertising.  The truth is, you're not going to get a ridiculously low rate unless you have very perfect credit or if you pay for it (doing a "buy down"). The rest of the United States gets a more average rate, which just happens to be VERY low right now.

WHY RIGHT NOW? 

These low rates can be attributed to stock prices falling, which in turn made more people start purchasing treasury bonds (which is what investors do when they need a safer place to put their money).  The result are rates that are dipping extremely low for almost anyone with a solid job and a credit score over 640.

HOW LOW?

For example, Freddie Mac reported in their latest report that the average interest rate for 30-year fixed mortgages was 4.84 percent, which is easily the lowest its been all year.  As for 15-year fixed mortgages, the average is 4.24 percent, which is the lowest it's been since 1991, which is when they initially tracking this type of data.  WOW.

What's surprising is that this is the exact opposite of what everyone was predicting a couple of months ago when the FED stopped purchasing mortgage-backed securities.  Some "experts" even claimed that we would see rates jump as high as 10%, which LUCKILY didn't (or hasn't) happened.

WHATS NEXT?

So what exactly is the point of all this?  Well, obviously, lower rates make it MUCH cheaper to purchase a house, and you can save literally thousands of dollars over the life of your loan.  Furthermore, it actually IS a great time to buy a house right now!

If you would like to get a free rate quote, or if you would just like some information about getting a home loan, don't hesitate to CONTACT US and we will get back to you as soon as possible. 

What Lenders Look for When You Want A Loan

In order to avoid the perception of bias (based on discrimination) most banks and lenders these days use  creditworthiness to determine if you qualify for a home loan.  Of course, that doesn't mean having a good credit score automatically gets you a loan.  It is, in fact, a big piece of the puzzle, but to get a totally clear approval you will need several other things in order as well.  Here they are:

TOTAL DEBT CANNOT BE TOO EXCESSIVE

When a loan officer runs your information to get you pre-approved, one of the first things they get from your credit report are your total debts and anything else you are obligated to pay each month.  They then factor this with your proposed monthly PITI payment (Principle, Interest, Taxes, Insurance) to get what is known as the "Debt-To-Income" ratio.  This ratio represents how much you will be paying each month compared to how much money you actually bring in.  Your total payments (including credit cards, student loans, car payments etc.) should not exceed more than thirty-six percent of your income.

APPRAISAL

When you get a loan, the note itself is secured by the actual property you buy.  This means that if you don't pay your mortgage the bank can foreclose on you.  In order to insure that the house is actually worth what you paid, the bank will order an accurate appraisal, which insures to them that they can again sell the property for the same price if this happens.

RESERVES

Lenders will often look at how much money you have in your bank account at the time you are requesting a home loan.  This shows to them that you can still afford to make a payment if you end up losing your job or not making any money in a particular month.  Reserves can include retirement funds or even a 401k savings plan.

PMI

PMI, which is Private Mortgage Insurance, protects the lender in case you default.  This means that a portion of your monthly payment will go directly to the bank as insurance.  In essence it really doesn't help you at all, and you can't ever get it back.  Luckily, though, PMI goes away when you reach 20% of your total principle.  (PMI is not included in your loan if you put at least 20% down)

DOWN PAYMENT

You can't make a down payment for a home loan with someone else's money, a credit card, or another loan.  If you are interested in doing an FHA loan, you are guaranteed to pay at least 3.5% of the sales price as a down payment.  So if you are looking to get a mortgage for $100,000 you can expect to need at least $3500 to close.  That being said, there are also other closing costs that you can expect to bring as well.  The point being, don't expect to get a mortgage for free these days, because it just isn't going to happen.

GOOD OVERALL CREDIT (FICO SCORE)


As mentioned earlier, the most important thing to consider when getting pre-approved for a loan is your credit score.  A high FICO score will entitle you to the lowest rates, a mid level score will entitle you to average rates and a poor score will disqualify you from getting a mortgage at all in many cases.  Don't worry though, as credit repair specialists can help you out to get your score up in most cases.

Lenders will verify everything aforementioned, including a re-verification of your employment before they allow you to close.  It all may seem a little excessive, but it's just what happens and there is no way around it unless you have the capability to pay for the whole house in cash.

So, if you have any questions about getting pre-approved or need information about getting your credit score up legitimately, don't hesitate to CONTACT US and we will get back to you as soon as possible.

How to Get the Lowest Possible Interest Rate in DFW

One of the most important aspects of obtaining a home loan or mortgage is getting the lowest possible interest rate.  Society has driven it into our heads that this in itself is paramount to anything else, including the actual house you are buying.  In fact, whenever I’m doing a loan for someone, literally the first thing they always ask me is “what are rates looking like today?”  People want to know how much they’re going to pay, and how this will affect their livelihood.

So if you’re in the market for a new home and you are concerned about this, there are a few things you should know before you get too preoccupied with your interest rate.

IMPORTANT INFO ABOUT RATES

First of all, mortgage rates change, and they change VERY OFTEN.  How often?  Well, last month lenders were re-pricing (changing rates) at an average of every 4 hours.  That’s right.  EVERY 4 HOURS.  Remember too that this is just an average, and many times rates have been known to change every 30 minutes or so.  So when your loan officer seems reluctant to speak with you about interest rates, it isn’t because he is trying to mess you over.  More than likely he is just scared to quote you something just to see it change an hour later.  After all, getting a "great mortgage rate" could end up saving you 1/8 % on your rate and consequently a couple hundred dollars in fees.

So what do most people do to “get the lowest rate?”  Society will tell you that the best way to achieve this is to “shop around” and get offers from multiple loan officers.  While in theory this is an excellent idea and supposed to make the process easier, the truth of the matter is that it doesn’t work perfectly.  At least not the way you want it to.

Why not?  Well, as I mentioned before, while you're trying to figure out which loan is cheapest, or most appropriate, or has the lowest costs, mortgage rates are moving, and they are moving ALWAYS.  Furthermore, being that getting offers from different loan officers can take a week, rates can be totally different even a day later than when you started.  So, timing is everything with this.

RECOMMENDATIONS

So what do we recommend?  How do you get this lowest rate and still not feel like you’re getting the run around?  Well, the best thing you can do is get your shopping done early in the process, because the truth is, most loan officers have access to the same rates.  The better info you give them, whether it be about yourself, the home you desire, or how much you want to pay each month, the better than can serve you.

By doing this you will get a good feel of which individual you want to work with, and you will learn a lot in the process of potential rates and closing costs.  Some loan officers won’t return your calls, some will give you inflated estimates, and some will even tell you they can’t help you out.  These are the folks you need to weed out.  

In the end you should be able to decide who you want to work with, and who can serve you the best.

The one you chose should be able to keep you informed about financial trends, and by planning accordingly, they can time your rate lock to when you desire to close, in turn getting you the best rate possible!

DON'T BE AFRAID TO GET YOUR CREDIT PULLED

Oh and one last thing, one of the biggest deciding factors for loan officers when shopping your rate is your credit score.  The higher your score, the better chance you have of getting a lower rate, and vice versa.  So be honest with the person you are working with, and don’t resist if they want to pull your credit.

Luckily, a formal credit pull by a loan officer working for a mortgage company is treated completely different than if you are applying to get 15% off your first purchase at The Gap.   Also, unlike applying for store credit cards, applying for multiple mortgage quotes won't count as multiple, consumer-initiated inquiries, which is a good thing.

So, if you’re interested in getting a mortgage quote, don’t hesitate to CONTACT US and we will get back to you as soon as possible.  It always helps to work with someone who is knowledgeable, and at the same time honest.

- Pate

203K Streamline - The Loan of the Future (and Fort Worth)?

Searching diligently for a home? Have you passed over your dream property due to cosmetic problems because it won't pass with the FHA for financing?  Well, look no further.  FHA has came up with something to help you out.  I introduce the 203K Streamline Loan, which was created in part due to the fact that many lenders won't do rehab loans anymore, and is much much simpler than the notorious 203K Loan (evidently the Streamline part is what makes the difference, haha).

This loan, in essence, allows a potential homeowner to finance up to $35,000 of needed home repairs into the purchase or refinance of a property.  This is excellent compared to a traditional rehabilitation loan, because it doesn't include the same review requirements, and consequently involves much less paperwork.  Here are some of the other benefits of the 203K-Streamline:

• Needed repairs are figured into the original loan balance, resulting in one loan.
• The mortgage balance can exceed the purchase price of the house.
• Borrowers are not required to hire engineers, consultants or architects.
• The home inspector or appraiser can put together a list of recommended repairs/improvements.

The program is designed to assist homeowners in easily rehabilitating a home where building consultants, engineers or architects are not required. This is a big difference compared to the regular 203K.

So you may be asking, what all repairs can be financed?  Well, eligible improvements include roofs, HVAC systems, plumbing or electrical upgrades, flooring, minor kitchen or bathroom remodeling (not involving structural repairs), weatherization, replacing old appliances, lead-base paint stabilization, repairing or replacing exterior decks, patios and porches, basement finishing or remodeling (again with no major structural changes), replacing windows and doors, septic system repair or replacement, painting and minor cosmetic changes.

If you are interested in applying for a 203K Streamline Loan, please don't hesitate to CONTACT US and we will get back to you as soon as possible.  We can help you find a house and make the whole process as simple as possible!