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Posts Tagged ‘first time home buyer’

AZ Mortgage Question of the Day: IF my ex-husband signs a quit claim deed, does that remove him from the mortgage liability?


AZ Mortgage Question of the Day:  IF my ex-husband signs a quit claim deed, does that remove him from the mortgage liability?

 

No.  The quit claim deed ONLY deeds the ASSET of the property to the remaining party.  It does not remove responsibility from the mortgage.  The mortgage would need to be refinanced with the remaining borrower qualifying to carry the mortgage alone.  Once the new mortgage is closed, the escrow company would take care of recording the new deed in the remaining party’s name.

IF the one borrower signs a Quit Claim deed but does not have the remaining borrower refinance, BOTH borrowers are still liable on the mortgage and it’s repayment requirements.  It also will remain on BOTH borrower’s credit reports. 

Many borrower’s make this mistake during a divorce.  Especially if they are trying to handle their divorce without an attorney.  It makes sense that if a borrower deeds the ASSET to the other party, that also transfers the mortgage liability, however this is not the case.  It is very important to handle this correctly during the proceedings as it can affect the leaving party in their ability to mortgage qualify down the road.  Providing the divorce decree and the quit claim deed will not suffice in removing the mortgage liability when qualifying.

Having a dream is good, owning one is better!

 

 

Leslie Pelletiere, Owner

First Class Financial Services, proudly mortgage lending since 1999!

602.294.9288(O)

602.294.9830(F)

www.fcfs.net

MB#0902810

NMLS #162494

AZDFI Loan Officer # LO-0911453

 

Cleaning the carpets at my Arizona rental… secret to stains!


 

Cleaning the carpets at my Arizona rental…. secret to stains!

First, I know this has nothing to do with the insides of the Arizona Mortgage business.  However, a good pointer I could not pass up.

I have tried everything to get the stains out of my WHITE carpet.  I rented a carpet cleaning machine and even purchased the spot remover. Nothing worked. HOWEVER I remembered the Queen of Clean mentioning something about Baking Soda/Vinegar and Water.  The baking soda WORKED! Literally took the BLACK stains from years ago, out of the carpet completely! I sprinkled down the baking soda, sprayed it with a water bottle and let it sit.  That’s it! Pulled it right out!

You can all thank me later!

Having a dream is good, owning a rental property with clean carpets is great, owning your own home is even better!

 

Leslie Pelletiere, Owner

First Class Financial Services, proudly mortgage lending since 1999!

602.294.9288(O)

602.294.9830(F)

http://www.fcfs.net

MB#0902810

NMLS #162494

AZDFI Loan Officer # LO-0911453

Investment properties are HOT but how many can you mortgage?


Investment properties are HOT right now but how many can you mortgage?

It is important to cover this at application time as many investors assume with good credit and the minimum down payment requirement they can mortgage as many as they would like. This can vary DRAMATICALLY between lenders and needs to be prior approved before the investor starts shopping!

Each lender makes a distinction as to what underwriting guidelines they are going to follow. Most lenders have “overlays” over the top of the traditional Fannie Mae/ Freddie Mac guidelines.
Fannie Mae’s standard guideline is that one borrower cannot have more than 10 financed properties including any financed primary residence.

Many lenders have an “overlay” restricting that to 4 financed properties including any financed primary residence.

Many lenders restrict the number the borrower can already have financed with them as well.

Freddie Mac has a maximum financed properties of 4 including any financed primary residence.

As an agent, be sure you ASK your loan officer what the restriction is for the number of mortgage properties. Many loan officers are not even aware of this restriction and again will only approve the borrower on credit/down payment merit.

Having a dream is good, owning one is better!

Leslie Pelletiere, Owner

First Class Financial Services, proudly mortgage lending since 1999!

602.294.9288(O)

602.294.9830(F)

http://www.fcfs.net

MB#0902810

NMLS #162494

AZDFI Loan Officer # LO-0911453

 

More AZ First Time Home Buyer Tips (really tips for ANY buyer!)


In Arizona, as in most places, if you are a first time home buyer, you can be overwhelmed with the process of purchasing a home.

Here is a bit more guidance:

First, when your realtor says “Location.Location.Location.” Just trust them. It is critically important. The bottom line is, you can change virtually anything about a house, you cannot change where it is located. Again, just trust us on this one. Clients like to convince themselves into things. This one cannot be compromised.

Second, USE your realtor. Remember, your BUYER agent is paid by the seller so there is NO reason not to use a realtor and use them to your advantage. They have done this “home buying” thing before. They know what, when, who, where and how to look for real estate…. and how much! The “how much” is the biggest thing on everyone’s minds these days…”how much” is not everything though… You realtor can walk you through all sides of it.

Third, get pre-approved. I know. I’m beating a dead horse here but full disclosure, it will not be the last time I bring it up. Use the mortgage calcuator at http://fcfs.net/loancenter-calculators-monpmt.aspx – this will help you get an idea of your potential monthly payment. Get your head around what you are comfortable with AND what is realistic. Fourth, after you have your monthly payment from using the calculator- don’t forget to add in your property taxes (go estimate is .78% of your purchase price is ANNUAL taxes – divide that by 12 to get your MONTHLY taxes) and go to http://www.iii.org/media/facts/statsbyissue/homeowners/  to get stats on average home owners insurance rates. You can use a factor of .35% (same way as above) to get an estimated amount as well. These will be added into your monthly payment so you want to be prepared for your FULL payment not just principal and interest.

NOTE: Don’t forget about potential home owner association fees!

Fifth, not sure? You may want to see the comparison of what is costing you to rent versus the benefit of home ownership- try out this handy tool to see the true impact – http://fcfs.net/loancenter-calculators-rentvsown.aspx  – I can save you some time and just tell you that the value of home ownership will substantially outway renting (in this current Arizona market) but sometimes seeing it is believing it. Remember, these are just items to give you some direction. Your loan officer and your realtor will walk you through all of these steps. The more you know before you start the better educated you will be during the process!

Having a dream is good, owning one is better!

Leslie Pelletiere, Owner

First Class Financial Services, proudly mortgage lending since 1999!

602.294.9288(O) 602.294.9830(F)          www.fcfs.net

MB#0902810 NMLS #162494 AZDFI Loan Officer # LO-0911453