Mortgage Refinance Program Expands….

Is your home value less than your current mortgage balance? If so, you now have more options now! Recently, the government updated the mortgage refinance guidelines to allow refinances up to 125% of your home value through Fannie Mae, but if your loan was owned by Freddie Mac, you were restricted to facilitating the refinance through your original lender causing confusion and delay.

Beginning October 1st 2009, Freddie Mac will introduce the “Relief Refinance Mortgage – Open Access Program”. This is great news! You are no longer required to go to your original lender or loan servicer to qualify. We are Freddie Mac approved, and can now handle your refinance and help you qualify for the 125% refinance providing you access to competitive rates, great service, and fast closings. If you owe more than your home is worth, now is the time to take action. This is a unique opportunity to lock in a potentially lower interest rate and more manageable monthly payment.

Example:
Let’s say your home is worth $300,000. Under the new refinance guidelines, you may qualify for a refinance of up to $375,000 (125% of your current appraised home value). In this example, even if your mortgage balance is $375,000, you can still refinance your loan into a better rate!

To qualify for this refinance program, the following conditions must be met:

1. You must be current on your mortgage payments
2. You must have the ability to prove your income
3. Your mortgage payment history should be clean, however up to one 30 day late payment may be allowed
4. Acceptable credit scores as low as 620 are allowed
5. Mortgage insurance is not required on these refinanced loans unless you have MI on your current mortgage, then you will have to keep it on your refinance transaction
6. If you have a second mortgage (or Home Equity Line of Credit), you maybe be able to consolidate the two loans into one new mortgage
7. Transaction fees up to $2500 can be included in the new loan amount not to exceed 125% of the home’s current value

If you are interested in refinancing your current residence, second home or investment property, the combination of historically low interest rates and improved refinance guidelines may be just what you need to enhance your financial situation

The First Time Homebuyer Tax Credit Expires in 90 short days… What does that mean to you?

The first time home-buyer tax credit expires in 90 days…it seems like you have a lot of time to find a house, get a mortgage and close, right? Think about how rapidly the rest of this year flew by…90 days is less than the blink of an eye.

What is the plan? First you have to get the money. That’s right, lets not even think about home shopping until you know what you can spend, and what payment you are comfortable with. If you don’t have that information, than looking for a home will be a crap-shoot. Once you have received your pre-approval letter, you must shop diligently. Keep these things in mind… you only have 90 days from today. I would steer away from new homes… any small delay, and you may lose your tax credit. Rather, I would look at existing homes (resales), to insure a rapid closing.

You should have your new home under contract by the end of the month…earlier is better, of course. Finally, don’t make any travel plans for Thanksgiving. Even though we will try to close by early November, every other first time home-buyer in the US will be attempting the same feat.  As a buyer, you must be available to close prior to November 30th.

Call me today, I will walk you through the process. Good luck on getting your new home.

Improving My Credit Score-Do’s and Don’ts When Trying to Buy a Home

Buying a home is an exciting process. It opens up a new canvas for furnishing, decorating or otherwise accessorizing your life. This also opens up many potential opportunities to damage your credit score. By following these few simple rules, you can streamline the process:

1. We have all heard that if your credit score report is run too many times, it will drop your score. There is some truth to this. If you are having it run by one or two mortgage companies, there will not be a major impact. The credit bureaus will understand that you are looking to compare lenders. However, if you also try to open a Home Depot, Best Buy, and a furniture store charge account your score will plummet, as the bureaus will fear that you will overburden yourself with new debt.
2. Do not close any accounts. If you close any credit accounts, it will reduce the amount of available credit and increase the percentage of outstanding balances to available credit.
3. Do not buy a new car. The affect of that on your mortgage is incalculable. What changes will be made in the payment? What documents will be required to prove that the old auto loan is paid off?

Why are these so important? Your credit was run at application right? Well many lenders will re-run your credit the day before or the day of closing to determine whether there have been any material changes in your financial situation. If you follow these few steps, it will make the closing much smoother.