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Are you a “Boomerang Buyer” – 6 things you need to know!
A “boomerang buyer” is a prior homeowner who had a foreclosure during the mortgage meltdown.
If this is you, 2015 is your year!
Most likely that foreclosure or short sale happened in 2008 and with the 7 year conventional waiting requirement, you will be eligible for a new conventional loan in 2015!
Here are a few things that will be helpful as you begin your new home qualifying process:
- Start early! Having all of your “ducks in a row” will help when you begin the process anew. EVERYTHING you encountered when you purchased your home “last time” is COMPLETELY different now so starting early and being prepared is critical.
- Required waiting periods: Remember, in order to qualify for a new conventional mortgage, you need to have been out of foreclosure a minimum of 7 years. This is 7 years from the date the home transferred ownership out of your name.
- A down payment required this time! There are new 3% and 5% conventional down payment options even on conventional financing. These options are limited to borrowers with higher credit scores. Having your credit report clean and ready is crucial to your ability to qualify for these programs. FHA is always an option in the event you are unable to qualify for a conventional loan.
- Check your credit: You can obtain a FREE copy of your credit report annually at www.annualcreditreport.com – this is will allow you to take an initial peek into your credit, what is reporting, how is it reporting and is there anything you need to clear up?
- If you had a VA loan that resulted in a foreclosure you may not have your full entitlement remaining for your new purchase. Reach out to your lender to obtain your Certificate of Eligibility. This will show what if any, balance will not be restored.
- Get pre-approved. The purchase contract is now contingent on your pre-approval. You will need this form to enter into a contract. You can get pre-approved easily and in most cases the same day. Best place to start? You can easily apply online at www.fcfs.net
We are here to help each step of the way. No question is a silly question. The more questions the more prepared.
Get started today!
Having a dream is good, OWNING one is better!
Leslie Nilsen
First Class Financial Services
mortgagedr@fcfs.net
602.294.9288
Save the Date – 8/1/2015 New TRID rules in affect!
TILA-RESPA Integrated Disclosure Rule is coming August 1, 2015.
There is much talk in our industry about how transactions will be impacted with this new disclosure rule. Rest assured First Class Financial Services is on top of these changes and working to create a smooth transition for all of us.
Over the coming weeks, I will periodically be posting the details in a simply way for you to understand. I also have an amazing tool in the works to help you with contract deadlines and selecting the closing date.
I will be blogging soon with our first of several posts explaining the changes and what First Class Financial is doing to support you and your clients.
Feel free to reach out at any point if you have ANY questions!
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
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)
MB#0902810
NMLS #162494
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
Did you know?
Did you know?
Did you know that when Congress created the Federal Housing Administration (FHA) in 1934, the housing industry was severely weakened:
* Two million construction workers had lost their jobs
* Many homebuyers were unable to meet the terms of their mortgage.
* Mortgage loan terms were limited to 50% down payment (WHAT?) with repayment terms of 3-5 years and ended with a balloon payment!
* America was primarily a nation of renters. Only four in ten thousand households owned homes! 40%!
FHA – insured mortgages provided the homebuyer with an AMORITIZED LOAN, one in which the monthly payment consisted of an interest payment and principal reduction payment. At the end of the term of the loan, the balance would be PAID. In FULL. No balloon! These loans worked well due to a stable economy that created little upward or downward movement in the interest rates of the mortgage market.
By comparison, FHA today, allows for 3.5% down payment (not 50%!) and 30 year terms/ adjustable rate terms, lower credit score qualifying. 64.8% of Americans are homeowners in 2014 (US Census report 7/14)
It is easier than you think to qualify for a new home loan- apply today! www.fcfs.net
HUD HISTORICAL BACKGROUND – www.hud.gov/offices/adm/admguide/history.cfm
Arizona Mortgage Question of the day: Where do I find a FREE mortgage calculator?
Arizona Mortgage Question of the Day (now affectionately called “QD”) Where do I find a FREE mortgage calculator?
First, this is an easy one. I’ve got you covered. We have MANY mortgage calculators on our website.
It’s easy. Click here —>http://fcfs.net/loancenter-calculators-default.aspx
Many home buyers/refinancers looking for an Arizona mortgage want to do their own research BEFORE they call a loan officer. I understand that.
Use the Arizona mortgage calculators to:
1. Calculate monthly payment —>http://fcfs.net/loancenter-calculators-monpmt.aspx
2. How much you can you afford? —>http://fcfs.net/loancenter-calculators-howmuch.aspx
3. The affect of making an extra mortgage payment? —>http://fcfs.net/loancenter-calculators-extrapmt.aspx
4. Chart an amortization schedule —>http://fcfs.net/loancenter-calculators-amort.aspx
5. The cost of renting -vs- owning —>http://fcfs.net/loancenter-calculators-rentvsown.aspx
6. The difference between and ARM (adjustable rate mortgage) and a fixed rate mortgage ->http://fcfs.net/loancenter-calculators-fixedvsarm.aspx
7. Should I refinance —>http://fcfs.net/loancenter-calculators-interestsaving.aspx
and many more!
You owe it to yourself to get started today!
Click here —> https://secure.web-loans.com/security-logon.aspx?timeout=1 to apply for your Arizona mortgage online today!
Having a dream is good, owning one is better!
Leslie Nilsen
Owner/Broker
First Class Financial Services, proudly mortgage lending since 1999!
602.294.9288(O)
602.294.9830(F)
www.fcfs.net mortgagedr@fcfs.net
MB#0902810 / NMLS #162494 / AZDFI Loan Officer # LO-0911453
I’m ready! I want to buy a house! How do I get started?
I’m ready! I want to buy a house! How do I get started?
Surprisingly, it’s easy. First, and foremost, you need to complete a mortgage application. You can do that by going online to www.fcfs.net and click APPLY ONLINE! This will walk you through the full application and it is emailed back to me as soon as you hit submit! OR you can call the office at 602.294.9288 and we can do one together over the phone.
You should have the following items handy when we do the application:
Current paycheck stub
Last years W2
Current asset account statements (checking, savings, 401K etc)
Once I have the application, I will pull a copy of your credit report.
We now have a full picture of where you currently stand and an idea of what you qualify for.
We will spend the time together to review your application, your credit report and what you qualify for. What down payment you should be prepared for? What the new mortgage payment will likely look like? Things that you should consider as you start your house hunting? As well as cover any questions you may have.
Once you have a loan approval, you are ready to hit the streets with your realtor! Need an Arizona realtor referral? We can help with that as well! You can see a list of our preferred realtors on the website as well at http://fcfs.net/custompage-view.aspx?id=28
We will provide the neccessary PreQualification Letter that your realtor will need in order for you to make an offer. Many times, as you begin looking at Arizona homes, we may need to re-visit your application so we can compare what you find, with what the mortgage numbers will look like. Ensure that you still have the same comfort level as when you began looking.
Once you have an accepted offer from the seller… we are off an running! This is when your Arizona mortgage loan submission process begins. Stay tuned for further blog posts on how the Arizona mortgage loan submission process works!
Any questions? Feel free to email me at mortgagedr@fcfs.net or post your question on Facebook —> http://www.facebook.com/#!/pages/First-Class-Financial-Services/278622632014
or of course, you can always call 602.294.9288
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)
MB#0902810
NMLS #162494
AZDFI Loan Officer # LO-0911453
Arizona Mortgage Question of the Day: Can I qualify for an Arizona mortgage if I have co-signed on a loan for another person?
Arizona Mortgage Question of the Day: Can I qualify for an Arizona mortgage if I have co-signed on a loan for another person?
Well, kind of.
There is a NEW Arizona mortgage underwriting rule for this. IF you are qualifying for an Arizona mortgage and you have co-signed (for example for your son to buy a car) BOTH you and your son need to be on the NOTE to repay. Your son makes the payments on time each month (out of his OWN individual account) then he can provide cancelled checks to show HE makes the car payment. By doing so, you can qualify for your Arizona mortgage without having that payment included in your debt.
IF, instead, you initiate the loan FOR HIM, you are on the ONLY borrower on the NOTE, then you have to qualify for your new Arizona mortgage WITH the car payment regardless of who makes the payment.
It always angered me that my father would never co-sign on my behalf, to establish credit. After what I have seen on individuals mortgage credit reports, I now understand his concern. Although we all know, I would have made all of my payments diligently 🙂 …… the alternative possibilities are scary.
I would always discourage anyone from co-signing on behalf of another person, however, in certain circumstances it can not be avoided. IF this is the case- just ensure you are BOTH on the NOTE.
Having a dream is good, owning one is better!
Leslie Nilsen
Owner/ Broker
First Class Financial Services
602.294.9288 (p)
mortgagedr@fcfs.net www.fcfs.net
First Class Financial 