Jeremiah Phillips of First Mutual Corp

In a recent Industry survey it was revealed there are 5 common mistakes most homebuyers make in mortgage shopping that can have a significant impact on the outcome of your negotiations. If handled correctly, these issues could result in a mortgage that will cost you a lot less over a shorter period of time.

Before you commit to mortgage, consider these 5 mortgage tips. And if you do, you can make your mortgage payments work much harder for you.
Tip #1) Get pre-approved for a mortgage before you go looking for a home.

Pre-approval is easy, and can give you complete peace-of-mind when shopping for your home. In fact, you can usually get a written pre-approval at no cost or obligation, and it can all be done quite easily over-the-phone.

Tip #2) Commit to a monthly dollar amount that works for you.

When you discuss your mortgage options with your lender, you’ll not only find out what level you qualify for, but also the monthly dollar amount of the mortgage. Your situation may give you a pre- approval amount that is higher (or lower) than the amount of money you would want to pay out each month. By determine the monthly amount, you won’t waste time looking at homes that are not in your price range.

Tip #3) You should think about your long-term goals to determine the type of mortgage that works best for you.

There are a number of questions you should be asking yourself before committing to any mortgage. Questions like: How long will we own this home? What direction are the interest rates going and how quickly? Is your income expected to change in the near term? The answers to these and other questions will help you determine the most appropriate mortgage.

Tip #4) Make sure you understand what prepayment privileges are and what type of payment frequency options you have.

As we both know, the more frequent payments you make, weekly or biweekly, can literally shave years off your mortgage. Simply by structuring the payments, so that they are paid more frequently, will significantly lessen the amount of interest you will be charged.

For the same reason, authorized pre-payment of a certain percentage of your mortgage, or an increase in the amount you pay monthly, will have a major impact on the number of years you will have to pay and could shorten your payment term considerably.

These two payment options can cut years off your mortgage, and save you thousands of dollars in interest. However, not every mortgage has these prepayment privileges built in.

Tip #5) Ask if your mortgage is both portable and/or assumable.

A portable mortgage (is not always available in every state) is one that you can carry with you when you buy your next home and allows you to avoid paying any discharge penalties. This means that you will not have to go through the entire mortgage process again unless you are making a move up to a much more expensive home.

On the other hand, an assumable mortgage is one that the buyer for your home can take-over when you move to your next home. This can be a very powerful tool at the negotiating table making it much easier and more desirable for a buyer to buy your home, and again saves you any discharge penalties.

Jeremiah Phillips Announces 2006/2007 Compliance Checklist

Jeremiah Phillips of Custom Mortgage Solutions announced today it has released an industry leading 2006/2007 Mortgage Company Compliance Checklist. This checklist was designed as a buyer’s guide to help consumers select a mortgage company with an unbiased scorecard. meets their needs.

A First In The Mortgage Industry. . .

“The industry standards for mortgage companies and their loan officers weren’t stringent enough for Custom Mortgage Solutions so we were forced to develop a 16-point compliance checklist for all mortgage professionals! And with the recent explosion of mortgage companies charging excessive fees for marginal service, it’s become a welcome buyer’s guide by hundreds of consumers and realtors. said Jeremiah Phillips, Senior Vice President of Sales for Custom Mortgage Solutions.
He went on to further say. . .

“Our philosophy is to help our clients make the best possible buying decision when selecting a mortgage. We offer world-class customer service, fast processing speed that literally save our clients thousands. Because of this, we’ve quickly grown to be one of the most recommended mortgage companies by local realtors, CPAs and lawyers in the Southern New Jersey and Philadelphia area.”

Click here for the 2006/2007 Compliance Checklist

Learn more…

About Custom Mortgage Solutions
With more than 10,000 customers and thousands of professionals recommending them, Custom Mortgage Solutions is now known by many experts as the standard in the mortgage industry to follow. Today, more than at any time in the past, the success of any mortgage company hinges on one thing: honesty.

Custom Mortgage Solutions offers various mortgage programs to fit their diverse needs of most potential home owners - such as:

Self Employed
Stated Income and/or Stated Assets
No Income/No Asset/No Employment
Mortgage History Only Program
Bank Statement Only
Rental History Only

Website http://www.todayslendingrates.com

Custom Mortgage Solutions
Jeremiah Phillips
Sr. Vice President
email: jphillips@cmslending.com
phone: (800) 869-2631 Ext 208

How To Avoid The 7 Biggest Mistakes Refinance Shoppers Make

The word count for this e-newsletter is: 460; Approximate time to read: About 2.5 - 3.0 minutes.

Refinancing can be very stressful and costly if you don’t take the time to do your homework. We simplified the process by helping you avoid these mistakes shoppers make in refinancing.
1. Is Your New Interest Rate Low Enough

Make sure that you savings on the new interest rate is low enough to justify the process of refinancing. It is best to decrease your interest rate by at least .75% to 1%. For example, this will save you about $100.00 a month on a $150,000.00 mortgage.

2. Know Your Closing Costs Up Front

By law, closing costs must be disclosed within 3 days of the loan application; however, there are different approaches to calculating them. Closing costs are initially estimated until the details of your specific loan are clear. It is wise to use a worst case scenario and be pleasantly surprised.

3. Be Sure You Fully Understand Your Reason(s) For Refinancing

Some refinance simply to reduce their interest rate. You should be aware that simply reducing your interest rate is not always to your advantage, so make sure that the gains from your rate reduction more than cover the related fees. There are, however, other legitimate reasons to refinance that may not be related to interest rates. Some are debt consolidation, home improvements, or a major purchase. Some of these choices may offer other financial or personal advantages, such as taking cash out to buy a car. In this example, you may be able to deduct your interest payments on your tax return. Always consult an accountant or tax attorney before making these types of decisions.

4. Beware Of “APR” Advertising

“APR” stands for Annual Percentage Rate. Some mortgage brokers use “APR” teaser rates to get your attention; however, they may actually end up costing you more. Such rates are often derived by using a 30 year mortgage coupled with an accelerated payment plan. Most lenders allow you to select such a plan, if you chose. Know your actual interest rate that you will be paying when comparing mortgages.

5. Should I Consider An Adjustable Rate

Adjustable rate mortgages or “ARM’s,” can be very helpful in assisting people into the housing market. They can help minimize your monthly payment, however, in the long run they can cost you more money if additional refinancing occurs.

6. Beware Of The Quality Of Service Provided

You want your refinance to be accomplished with as little hassle and in the shortest period of time. Ask your mortgage broker details of their service plan and performance guarantees and make sure you get them in writing.

7. Not All Loan Officers Are Created Equally

Be sure to ask your mortgage loan officer about all their available loan products, terms and rates. A subtle difference can save or cost you thousands.

Finding The Right Home Loan Has Never Been Easier!

As the #1 most recommended mortgage professional by local realtors, CPAs and lawyers in the southern New Jersey and Philadelphia area, we specialize in finding ways to say “yes”!

Whether you’re dealing with a new home buyer or an existing home owner, a credit superstar or credit challenged – Custom Mortgage Solutions has hundreds of home loan options.

Call today and we can discuss their loan needs sooner vs. later.

Greetings From Jeremiah Phillips,
The word count for this blog is: 351; Approximate time to read: About 3.0 - 3.5 minutes.

Sometimes getting approved for a mortgage can be harder than finding that perfect home. With that in mind, we put together a list of 5 tips to help you get the mortgage you want.
1. Increased Ability To Finance Your Closing Costs

You can now finance up to 100% of your closing costs thanks to recent changes in Federal Housing Administration (FHA) guidelines, compared to the old limit of 97%. This is very good news for the first time home buyer who typically has less cash available at the time of closing.

2. Increased FHA Limits

There FHA loan amount maximums have increased, which is particularly helpful for people living in high cost housing markets. FHA ‘s mortgage limit is now tied to local housing costs. The limit is now 95% of the median home price, or 75% of the Fannie Mae maximum loan amount, which ever is lower. This is another avenue for the first time home buyer to achieve the dream of home ownership.

3. Increased Accessibility To Down Payment Assistance Programs

With the rapid increase in home prices over recent years, more and more people are having the dream of home ownership ripped from their hands. Typically one had to go through a rigorous process to qualify for a down payment assistance program. Today, there are now programs which have very little hassle. Ask your mortgage broker if they have access to such options.

4. Rapid Loan Approval

One of the latest innovations in the mortgage industry is the advent of computerized loan approval. These programs provide both rapid loan approval and more uniform loan approval practices. This type of approval is done by scoring a borrower’s credit worthiness which quantifies the risk they will default on the loan. Does your mortgage broker use such a program?

5. Affordable Mortgages Which Don‘t Verify Income

These loans are perfect for those people who are self employed, real estate investors, retired persons and anyone who doesn’t want to have to prove their income. It is essential to have a good credit score in order to qualify for non income verified loan.

Finding The Right Home Loan Has Never Been Easier!

Whether you’re dealing with a new home buyer or an existing home owner, a credit superstar or credit challenged – Custom Mortgage Solutions has hundreds of home loan options.

Visit my web site or call today and we can discuss their loan needs sooner vs. later.

Happy 4th of July!!!