5 Resolutions for First Time Home Buyer's

I love helping first time home buyer's!  The excitement they are experiencing brings back fond memories of my wife's and my first home purchase.  I cherish the opportunity to answer their questions and give them guidance so that their experience can be as pleasant as mine was.

Over the years, I have found that there are 5 resolutions or goals that first time home buyer's can focus on which will help them successfully negotiate their purchase and close on the loan that they want and deserve.

Every borrower has their own set of circumstances which makes their situation unique and I love working out a plan to help them get to the point of loan qualification and they can then move on to their home search.

Because so many first time home buyer's fall into similar circumstances, I have come up with
"The 5 Resolutions for First Time Home Buyer's".

The mortgage world is now rewarding borrower's with better interest rates and more favorable loan programs if they have higher credit scores, so my first advice is to Boost Credit Scores!  I developed a credit monitoring system which has been used by hundreds of my clients to help them fix their credit and to monitor their credit scores.  Here is the link to my Blog Article and at the bottom of the article is the link that takes you out to the credit monitoring companies offering a monthly service:  Credit Monitoring Program

Down payment can open loan program opportunities that will save huge amounts of interest savings over time.  And without a down payment, fortunately, we have great programs available for ZERO down mortgages-Utah Housing Finance Agency, but for the best loan programs, lower cost to originate, and lower interest cost over time,  Save Up to Put Down!

Find The Best Real Estate Agent is the secret sauce to a smooth enjoyable home buying experience! Because my Realtor Business Partners each approach the home buying process the same way as I do and will provide low pressure, educated guidance and assistance through the home buying process (and are experts with first time home buyer's and their questions and needs), I can provide you with a name and phone number of a trusted professional of mine who will amaze you with their abilities.

Beginning a home search usually begins with online searches and a visit to the mortgage calculator also provided online.  Unfortunately, the online mortgage calculators forget (or have no way of providing) information about monthly mortgage insurance (FHA) or private mortgage insurance (Conventional financing) and many assumed mortgage payments are just plain not correct.  The safest way to make sure that you are getting the correct information is to Get Pre-Approved!    My Credit Approval letters are backed up by an Automated Underwriting Decision (Fannie Mae or Freddie Mac) AND I underwrite income and assets.  What this means is that when a client of mine gets an accepted offer, their loan WILL close!  They also KNOW what their future payment is going to be rather than trusting the online calculator.  Pre-Qualify Today!

After meeting with clients, helping them with questions, taking their application (over the phone or in person), getting a credit approval, providing the credit approval letter to their Realtor, they then get to
Find Your Dream Home!  This is the most fun part of the process (still stressful, but fun) and with all 5 Resolutions for First Time Home Buyer's completed, this is a natural final process to a successful journey to home ownership.

FHA Mortgage Insurance Changes: As of June 3, 2013

FHA Mortgage Insurance is changing again and for the 2nd time this year.  FHA has tried to find the magic insurance rate to allow FHA loans to be available, FHA to be solvent (too many losses and not enough insurance will take the FHA option away) and this INCREASE will enable FHA loans to be available into the future. 

Lock into the current FHA mortgage insurance by calling me and I can get an FHA case number for you

I must have your full FHA loan application for a refinance or a purchase-with property identified-before I can get an FHA case number.   

All FHA case numbers obtained after May 31, 2013 will fall under the NEW insurance rates which require monthly mortgage insurance for the life of the loan (MMIP currently drops off after 5 years or 78% of the original value or appraisal, whichever the lower amount) if the Loan to Value (LTV) is above 90%.

For LTV's below 90%, monthly mortgage insurance will drop off after 11 years. 

Here are the future Monthly Mortgage Insurance rates after June 4, 2013:

• 15-year loan terms with loan-to-value over 90% : 0.70 percent annual MIP
• 15-year loan terms with loan-to-value under 90% : 0.45 percent annual MIP
• 30-year loan terms with loan-to-value over 95% : 1.35 percent annual MIP
• 30-year loan terms with loan-to-value under 95% : 1.30 percent annual MIP

Beginning in June, though, the FHA moves away from an LTV-based system. The new cancellation policy will be as follows :

• Loans beginning at 90% LTV or less will pay annual MIP for 11 years.
• Loans beginning at 90% LTV or more will pay annual MIP for the complete loan term.

This means that home buyers using the Federal Housing Administration's 3.5 percent downpayment program will pay annual mortgage insurance for the loan's full 30 years, regardless of whether the home appreciates to the point of having 22 percent equity or more.

With the new FHA rules, Monthyly Mortgage Insurance Premium is forever. 

VA loans up to $417,000

I continue to be amazed that if a Veteran would like to purchase a home, VA will allow up to a $322,700 (inclusive of the VA funding fee) loan amount with a ZERO down payment!   Higher loan amounts up to $417,000 are also available with a down payment.   

VA financing for eligible Veterans and National Guard

The VA purchase program can't be beat for maximizing your return on dollars that don't need to be paid at closing for a down payment.  Additionally, there is no mortgage insurance to be paid monthly, which, for a ZERO down loan is an unbelievable benefit!   

Cash out refinancing with a VA loan can consolidate bills or get money to remodel your home and the loan to value goes up to 90%, which is 10% higher in loan to value than Conventional financing and 5% higher in loan to value than FHA (and FHA requires monthly mortgage insurance, VA does NOT!).

Eligible Veterans and National Guard have a great loan to take advantage of with the VA loan!

The Real Deal: End of a mortgage era

End of a mortgage era

Fixed 30-year mortgage rates in the 5 percent range? Minimum down payments below 5 percent? Jumbo-size home loans for high-cost markets at regular interest rates? Kiss them good-bye -- possibly sooner than you might guess.

Take a snapshot of today's mortgage market conditions and frame it. It's highly likely you'll never see anything like these favorable combinations of rates and terms again. That's the inescapable conclusion emerging from the Obama administration's "white paper" on optional remedies for the two ailing giants of housing finance -- Fannie Mae and Freddie Mac -- along with events already under way in the national economy.

FHA Loans vs. Conventional Loans: Which is better?

Conventional loans increasingly slipping away

If you want to know the difference between conventional mortgages and Federal Housing Administration (FHA) financing, the first item up for discussion is typically the cost of each loan.
For instance, the Wall Street Journal tells us that “conforming mortgages, or those that can be bought by Fannie Mae or Freddie Mac, commonly require higher down payments than FHA loans require. The catch to an FHA-insured loan is that you’ll pay more in fees.”

Later the Journal explains that “borrowers don’t face those costs on a conforming mortgage with 20% down.”
Well, sure, but how realistic is this comparison for most borrowers?

Coming to a Lender Near You: 20% Down Mortgages (that's how you get the best rate and terms!)

20% Down Payment Required? WHY? 



The days of the NO money down mortgage are long behind us, folks.
After the housing boom and subsequent crash, statistics revealed that those with little or no "skin in the game" were much more likely to default on their home loans.

At the same time, banks and mortgage lenders were selling off the bulk of their mortgages to investors, so neither homeowner nor lender was really retaining any risk.  As a result, politicians came up with risk retention requirements under the Dodd-Frank Act, which are set to take effect soon.

Another Reason to Buy or Refinance Your Home Soon

Another Reason to Buy or Refinance Your Home Soon

April 18th, 2011 is an FHA deadline for another increase of Mortgage insurance; this time Up Front Mortgage Insurance.

FAQ's Homeowners have at tax time:

10 critical questions for homeowners at tax time

Gina Pogol   HSH.com

Albert Einstein once said, "The hardest thing in the world to understand is the income tax." If you buy, sell, finance or own real estate, it gets even worse. Before you belly up to the nearest bar or start pulling your hair out, check out this list of FAQs for tax-paying, home-owning citizens.

Yep, property and taxes go together like blood and leeches. Yet there is no reason to pay more than the minimum. Here are some commonly asked questions about taxes and homeownership.

Knowing the answers will help keep your tax bill as low as possible.

Here are the 10 Frequently Asked Questions homeowners have at tax time:

Locate HUD-approved housing counseling

For the vast majority of programs Private Mortgage Insurance companies offer insurance for (on Conventional Loans), borrowers are no longer required to undergo pre-purchase counseling.

However, I understand that many home buyers may still find such counseling useful, and studies show that loans to borrowers who have taken 8 hours of face-to-face home buyer education perform better -- a benefit to both lenders and borrowers.

To help locate a community organization that may offer prospective home buyer education, here is a website which provides information regarding HUD-approved housing counseling agencies throughout the country. 

Find Homebuyer Education in your area today!