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Archive for October, 2014

Is It Time to Make Your Move? The cost of waiting! Part 1


Available inventory is VANISHING!

Detecting signs of VANISHING Shadow Inventory

Check out this chart! —> Buyer Purchasing Power 

The percentage of shadow inventory is down 78% in Arizona!

What is Shadow Inventory: A looming mass of delinquent and foreclosed-upon homes that threatened to destabilize the market.

In April 2014, Corelogic released its most recent figures on Shadow Inventory.

  • The national residential shadow inventory declined 23% year over year this past January.
  • The inventory has experienced double digit year over year declines for each of the past 16 consecutive months.
  • The shadow inventory from Jan 2013- Jan 2014 has decreased an average monthly rate of over 41000 properties, according to CoreLogic.

Why the decline?

  • Healthy housing market.
  • Prices have been going up at a steady pace, positive home equity, simple increase in home value over the last few years.
  • An abundance of short sales or modifications.
  • Reducing inventory=less opportunity= higher prices= QUESTION? Why wait?

Is it time to make your move? What are you waiting for?  

Apply today! www.fcfs.net 

First Class Financial Services

Leslie Nilsen                                                    

602.294.9288   http://www.fcfs.net

     MB#0902810 / NMLS # 162494

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What is the difference between a DISCOUNT POINT and an ORIGINATION FEE?


What is the difference between a “discount point” and an “origination fee”?

Many buyers get confused with the differences, benefits or costs associated with “discount points” versus “origination fees”.  Let’s break them down:

A “Discount Point” is 1% of your loan amount and is actually “prepaid interest” to buy DOWN your interest rate.  The more “discount points” you pay, the lower your interest rate. HOWEVER, remember these are PREPAID so they are paid at closing.  This can be costly and is it “cost effective”? It depends. First, do you have the money? And Secondly,  how long you plan to stay in that mortgage.  If the discount points cost you, for example, $6000

($300,000 mortgage x 2 points = $6000)

and it reduces your monthly payment by @$90/ month, $6000/$90 = 66 months or 5.5 years! Do you plan to stay in that mortgage for at least 5.5 years? If so, discount point(s)  MAY be worth considering.  You will just need to be prepared to shell out an additional $6K in addition to your closing costs at closing.  Remember to speak with your tax accountant as these points should be tax deductible in the year you pay them.

An “Origination fee” does NOT related to rate at all. This is the fee to “originate” your mortgage.  Again, it does NOT have ANYTHING to do with interest rate.  It is a FEE associated with acquisition.  You typically can either choose to pay the origination fee OR choose a higher interest rate and the lender will pay it on your behalf.  Again, the pros and cons depend on many factors. It is important to discuss all of your options with your mortgage lender.

NOTE: Be sure to review your Good Faith Estimate which covers all of the closing costs associated with your mortgage.  This will detail the “discount point(s)” if you choose to buy down your rate, the “origination fee”, if you choose that option, and your interest rate that is reflective of those choices.

Ready? You can easily apply online at www.fcfs.net

Questions? Call us! 602.294.9288

or email at mortgagedr@fcfs.net

Post your question on Facebook

Having a dream is good, Owning one is better!

Leslie Nilsen

Owner/Broker

First Class Financial Services, proudly Arizona mortgage lending since 1999.

602.294.9288(O)

602.294.9830(F)

http://www.fcfs.net

MB#0902810

NMLS #162494

Categories: arizona mortgages

The down low on using GIFT funds for down payment…


Many types of mortgage financing allow for GIFT FUNDS to be used towards down payment.  The basics?
* Gift funds need to come from a blood relative (“donor”)

* The “donor” needs to be willing to provide the “source” of the funds.  This can be a bit tricky as many times the relative does NOT want to provide bank statements or asset statements to show where the money came from.  There is no way around this so prepare for it from the beginning.

* The “donor’s” bank statement can not show any LARGE deposits into it in the statement period.  The reason for this is the underwriter wants to see that the “gift funds’ are not borrowed funds requiring a repayment.

* The “donor” will sign a gift letter stating they are gifting the funds from Account “X” and that the funds do not have to be repaid.

* Those funds should then be wired directly to the escrow company handling the transaction.  This helps to avoid having to “paper trail” the funds through the borrowers account and again to escrow.  If the “donor” sends the funds directly to the escrow company it eliminates this step.

Remember, on FHA loans, 100% of the down payment AND closing costs can be gifted.

Be sure to check on the specific type of CONVENTIONAL loan you are qualified for as to the allowable “gift funds” per your program.

Ready to get started?  You can apply ONLINE conveniently at www.fcfs.net

If you have any questions, feel free to contact us at 602.294.9288

or E-mail:  mortgagedr@fcfs.net

Post your question on Facebook 

Having a dream is good, Owning one is better!

Leslie Nilsen

Owner/Broker

First Class Financial Services, proudly Arizona mortgage lending since 1999.

602.294.9288(O)

602.294.9830(F)

www.fcfs.net

MB#0902810

NMLS #162494

AZDFI Loan Officer # LO-0911453

 

 

 

5 quick and easy helpers for FIRST TIME HOME BUYERS?


1. GIFTS… remember, depending on the type of loan you qualify for, GIFT FUNDS can be used towards your down payment!  Not only relatives but think WEDDING GIFT? Yes.  Wedding Gift.  Wedding accounts are a huge source of down payment- you can advise you are “registered” with a “HOME FUND” account and your donors can deposit your wedding gift into your “Home Fund” what better way to buy your new home and celebrate your new life together?  There are caveats to this account so call me I can walk you through it and/or any other gift contributions.

2. EDUCATION.. first time homebuyers are more educated then they have ever been.  This is a great start to home ownership! We have access to HUNDREDS of educational links! Just ask!

3.  MINIMAL DOWN PAYMENT OPTIONS?  Conventional loan options with 3% down payment or FHA options with 3.5% down payment OR are you a VETERAN?  Veteran options with 0% down!

4. PREAPPROVAL! Get preapproved PRIOR to shopping.  It makes the whole process much easier.  You do not find a dream home you cannot afford!

5.  LOAN OPTIONS? What are you options? Terms? Rate? Down payment? Mortgage Insurance? Max purchase price? Closing costs? Know before you shop.

6. READY TO GET STARTED? Apply online! www.fcfs.net TODAY!

Questions? Call us! 602.294.9288

Categories: arizona mortgages