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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
Arizona Market Update June 2011
Arizona Market Update June 2011
Thank you again to Sarah Moran of Equity Title Agency (sarahm@eta-az.com) for providing this up to date info!
Here is the Market Update through the end of June 2011.
WOW: Total active listings have dropped by another 2320 units over the beginning of last month. As of July 6, we sit at 28,887 Actives for Single Family Homes and Condos. Sales are at 10,512 for the last 30 days (as of July 6), which continues to trend up. We are currently sitting at a 2.6 months of supply. If you subtract out the AWC Contracts (which are included in Actives in the Cromford Report), we are at 2.1 months of supply. Traditionally, 3-4 months of supply indicate a balanced market. We are in a Seller’s Market!
Distressed Market: Short Sales represent 27% of the Closings for June (compared to 21% in May) and 39% of the active Listings for a 3.9 Months of Supply. Distressed Sales (Short Sales and REOs combined) accounted for 68% of the total sales for June. The listing success rate for Distressed Properties is up to 74.3% and for Short Sales is at an all-time high of 63.9%! Don’t avoid these listings! They are closing with greater success rate!
Closings: There were 9450 closings in June 2011 vs. 9353 closings in June 2010 ~ which equates to a 1% increase over last year!
Reality Check: The Median Sold Price for Maricopa County for June 2011 was $124,000, which is a 3% increase over last month! In June 2006, the Median Sold Price was $266,523! In June 2000, the Median Sold Price was $136,400. Use this at your listing appointments to help explain what has happened to our market and get realistic list prices!
We currently sit at a 2.6 months of supply valleywide. And we are finally seeing movement in the high-end market. In the MLS, there were 92 properties that sold for $1+ million for the month of June – and currently in the $1+ million segment, there is an 11.7 months of supply – and listings have dropped by 133 units.
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)
MB#0902810
NMLS #162494
AZDFI Loan Officer # LO-0911453
AZ Mortgage Question of the Day: My wife mortgaged our primary residence only in her name, do I need to count that against me when I qualify?
Simple answer, YES. Arizona (and many other states- see below) is a community property state so debt is considered “common” between husband and wife regardless of who signed the note. This is important for several reasons but primarily for asset requirements. Every loan has a “reserve” requirement. This means “a number of months of principal/interest/taxes and insurance for EVERY property that you own needs to be available in liquid funds.”
IF the wife, in this case, holds the Arizona mortgage note but BOTH parties are on the deed, this is considered community property and is subject to reserve requirements. We want to make sure that the amount of assets available meet the reserve requirement.
Reserves are considered checking, savings, stocks, mutual funds, bonds, and retirement accounts. Retirement accounts only receive credit for 60% of their balance (due to restrictions on having access to the money).
Special rules apply to spousal property and income in the community property states:
- Arizona
- California
- Idaho
- Louisiana
- Nevada
- New Mexico
- Texas
- Washington
- Wisconsin
Feel free to contact me if you have any questions.
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)
MB#0902810
NMLS #162494
AZDFI Loan Officer # LO-0911453
AZ Mortgage Buyer Checklist as provided by the Arizona Department of Real Estate
AZ Mortgage Buyer Checklist as provided by the Arizona Department of Real Estate
In researching some information through the Arizona Department of Real Estate, I found a handy Buyer Checklist!
You can find it here: http://www.re.state.az.us/PublicInfo/PropertyBuyerChecklist.aspx
This checklist has infomation on:
New homes in a Subdivision…….specifically to reading the contract completely (builder contracts can vary greatly from the typical purchase contract), how to get the public report, and notes on what to do BEFORE you sign the contract.
Previously Owned Homes……..specifically to the realtor’s representation, getting a home inspection, termite inspection and what to do BEFORE you write an offer.
Undeveloped Land…….. specifically to advise regarding asking for the ” Arizona Department of Real Estate Disclosure Report “(Public Report), reviewing the Arizona Department of Water Resource, and parcel requirements, if intent to build.
The checklists are kept up to date by the Arizona Department of Real Estate and have all of the important information for each category that you or your buyer might forget!
Although dry, the department can be a wealth of information. The more we know the better off we are.
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)
MB#0902810 NMLS #162494
AZDFI Loan Officer # LO-0911453
AZ Mortgage Question of the Day: Can an investor buy a property from Fannie Mae and then sell it to a new buyer using HomePath financing?
AZ Mortgage Question of the Day: Can an investor buy a property from Fannie Mae and then sell it to a new buyer using HomePath financing?
Sorry. The answer is No.
Fannie Mae properties are offered with special financing called HomePath financing. This allows for a buyer to purchase the home directly from Fannie Mae and take advantage of the perks of the HomePath financing.
In this case the client was purchasing an investment property. On investment properties, HomePath allows for a minimum 10% down payment and NO monthly mortgage insurance requirement!
Most HomePath properties are designated that way due to condition issues. The HomePath financing does not require a property appraisal so any condition issues are not relevant to qualifying.
Fannie Mae also have a special incentive running now offering 3.5% closing costs assistance through 6/30/2011.
You can find out more about HomePath properties at www.homepath.com and about the special incentive at www.homepath.com/incentive/index.html
Having a dream is good, owning one is better!
Leslie Pelletiere, Owner/Broker
First Class Financial Services, proudly mortgage lending since 1999.
MB#0902810 NMLS#162494
YAY! Lender LOWERS FHA credit score requirement to 580!
I ask you… IF you can get a mortgage with:
1. A 580 credit score
2. Your grandmother can gift you the 3.5% down payment
3. The seller can pay ALL your closing costs
4. (You can have ZERO contribution of your own money)
5. You do not need reserves to qualify.
6. You can get an interest rate below 5%
7. You have more inventory to choose from than eggs at an easter egg hunt.
8. You can have a new mortgage payment less than you are paying in rent.
9. You LOVE your realtor.
10. You LOVE your loan officer.
11. You HATE your roommate.
What is everyone waiting for?
Spread the word. Life is good. We need to take advantage of it!
Having a dream is good, owning one is better!
Leslie Pelletiere, Owner/Broker
First Class Financial Services, proudly mortgage lending since 1999.
602.294.9288(p) mortgagedr@fcfs.net www.fcfs.net
MB#0902810/ NMLS#162494
How does the new Loan Officer Compensation affect your buyer/seller?
First, did you know there WAS new loan officer compensation?
There is. Basically (although unbelievably convulated and confusing) the new legislation says that borrowers have 2 options. EITHER to pay their loan origination fee OR to accept a higher interest rate and have the lender paid the loan origination fee. Seems simple, right?
Here’s where YOU, as their realtor, come in. Does the loan officer that your buyer is obtaining their loan from, even have TWO options? Many lenders are adopting ONLY the lender compensation and ONLY offering the higher rate option to your client. IF you buyer is unaware that their are two options available to them, they may not know to ask or search for another loan officer (me).
Keep in mind, many times a lender paid, higher rate option works best. My job is to ensure that BOTH are presented to the borrower so, through analysis, we can determine which is best.
Also, on the lender paid option, most lenders have adopted a MINIMUM amount in order to ensure the loan officer receives adequate compensation regardless of the loan amount. HOWEVER, the lender may have to increase the interest rate, considerably, in order to pay the minimum compensation to the loan officer, again dramatically impacting the quality of the loan for the borrower.
On another note, the new Loan Officer Compensation does NOT allow for ANYONE to pay for ANY additional costs associated with the loan OTHER than the borrower. This typically comes up under lock extensions. IF a loan needs to be extended at a cost, the buyer is the ONLY one that can pay that expense. NOT the loan officer. NOT the realtor. Regardless of WHY the lock needs to be extended AND given that this is a new expense, the buyer will need to re-disclosed this expense (with mandatory disclosure times) which could affect your close of escrow date.
Just be aware. Ask questions. If your business is referral based as mine is, it is critical we are advisors for our clients not just transactional.
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)
MB#0902810
NMLS #162494
AZDFI Loan Officer # LO-0911453
Kids and Money…It doesn’t grow on trees!
The money may not grow on trees but it does come from gifts! I encourage my son’s family members to gift in the form of CASH. I know. I know. Most gift givers do not want to give cash but it feeds to the rest of my story. #1 He loves the cash. Most family members now give him the gift in the form of individual dollar bills. Admit it, it just seems like more. #2 We practice control. How much to keep? How much to deposit? #3 We make another trip in the “dream car” to the bank. With “whats my balance?” being the next thing out of his mouth. Music to my ears! #4 Once the whole journey is over, he is reminded just how important it is to think first, deposit second, spend third.
My parents have also started contributing directly into his 529 college fund. They will send him something small and a note that they have contributed towards his college.
This morning we had the “How can I make more money?” conversation. He is seeing his goal looming on the horizon. He turns 16 in 310 days, 8 hours and 23 minutes. Not that either of us are counting.
Having a dream is good, owning one is better!
Leslie Pelletiere, Owner
First Class Financial Services 602.294.9288 (p) www.fcfs.net mortgagedr@fcfs.net
MB#0902810/ NMLS# 162476
Kids and Money… Goals. New Account. Compounding Interest!
What is more exciting to talk to your kids about than the magic of Compounding Interest? Ok so maybe thats just me!
My son and I started by talking about what he wanted to spend his money on. Initially it was small things he could buy immediately. The more we talked about it, the bigger his “dreams” got. He ultimately decided he wanted to save for his first car. On that note, we drove his “new dream car” to the bank and opened an account. Ask your local bank about accounts specfically designed for kids.
Over icecream, to celebrate, we talked about compounding interest. The conversation is radically different over ice cream and with his own money. Once he figured out that the bank would GIVE him money, his sense of urgency to get money into the account compounded as well.
Now every time he makes or is gifted money, he holds out a portion for himself and the remainder is deposited into his account. He has a picture of his Jeep posted above his desk, right next to his bank statements.
Might be a good time to think about your own goals (home ownership or upgrading, of course), open an account and master the power of compounding interest! You can thank me later!
Over a glass of wine tonight, I’ll decide my new goal for all the money I saved not having to buy my kids first car!
Having a dream is good, owning one is better!
Leslie Pelletiere, Owner
First Class Financial Services
602.294.9288 (p)
www.fcfs.net mortgagedr@fcfs.net
MB#0902810 / NMLS# 162494
First Class Financial 