Mortgages by Jeremiah Phillips

I ran across this article that has a lot of the condo information attached.  There is a lot of good information and unfortunetley I have seen more and more condo’s not being approved.  Please feel free to give me a call if you have a condo in mind and I can check it’s current status.

Real: Condo loans challenge buyer and association | ScrippsNews

Taking on do-it-yourself home improvement projects or rehabilitating a fixer-upper can be a worthwhile investment for your clients.  It can also be a huge financial risk if they do not have the skills to do it properly.  The key for do-it-yourselfers is to learn from the mistakes of others so they do not repeat those same mistakes themselves.  To that end, we have consolidated the seven biggest mistakes made by do-it-yourselfers and put together the list below.

The 7 BIGGEST Mistakes Do-It-Yourselfers Make: 

Mistake #1. Not Obtaining The Proper Permits — When it comes to homes and home building, there are codes for nearly everything.  No matter what type of work your clients are planning to do, make sure they look into getting a permit — certain things are unlawful to build without one. 

Mistake #2. Not Outlining A Work Plan — More often than not, a DIY home improvement project will take longer than your clients anticipate.  The best way for them to manage the amount of time necessary to complete a job is to prepare a day-by-day calendar – and leave some wiggle room to compensate for any unexpected delays. 

Mistake #3. Not Budgeting Properly — Home improvement projects can quickly add up.  We recommend do-it-yourselfers itemize every bit of material, all the way down to studs, nails, staples and joint compound.  They should always work with hard figures instead of guesswork. 

Mistake #4. Not Getting Additional Help — If a project requires more than one person, do-it-yourselfers need to get help.  Toughing it on their own will not impress anyone, nor will it do much good on the jobsite.  There are some tasks that cannot be completed without a second pair of hands, such as hanging drywall on a ceiling. 

Mistake #5. Not Consulting A Professional — Certain aspects of home repair demand assistance from a professional.  If a serious issue exists, such as previous fire or water damage, the repairs may be too complex.  Even experienced do-it-yourselfers should defer to the expertise of a professional.  Plus, their insurance policy may cover some or all of the repair costs too.

Mistake #6. Not Using The Right Tools — Anyone striving for professional quality work needs to be equipped with professional quality gear and tools.  Based on experience, it does not pay to buy low-end tools. 

Mistake #7. Not Getting Quality Materials — It is best for your clients to avoid any temptation to skimp just to save a few dollars — especially when it comes to materials.  On average, you get what you paid for.  If your clients want to turn out quality work, they need to be working with quality materials.

Summary: Do-it-yourself home improvement projects can be a rewarding experience and a great investment, but there is a lot for your clients to consider before getting started.  Breathing new life into a fixer-upper can be tricky, so encourage your clients to heed the advice listed above and take time to observe and learn from the mistakes of others to ensure that their DIY ventures go smoothly.

 

We all know that the worst time to run into problems when purchasing a home is during the final days leading up to closing.  Often times complications arise from the lack of understanding about the loan process. 

Buying A Home Is A Big Step And The Loan Process Should Not Be Taken Lightly. 

To help you avoid you running into complications during the purchasing of a home, we have listed below 4 tips to help you or someone you know have a smooth real estate transaction. 

4 Tips To Avoid Complications When Purchasing A Home:

Tip #1. Don’t Make Large Money Deposits – Making large financial transactions before closing can and will raise red flags during the loan process.   This includes large cash deposits.  All deposits must be documented.  Speak to me before anything goes into your account.

Tip #2. Inform Me Of Changes In Your Employment – One of the worse times to change jobs is right before closing, as your employment is verified the day before closing.  Any changes can affect the purchase of the home.

Tip #3. Keep All Paystubs, Bank Statements, Etc. – Once you are pre-approved, it is important to save all your proof-of–income documents in a folder.  Occasionally underwriting needs your updated information.  Having all your information together can prevent delays and save many headaches.

Tip #4. Keep Copies Of All Deposits – Any deposit(s) made into your checking account must show where the money came from.  Do not deposit cash or use borrowed money unless you have cleared with me.  The loan process can be stopped if undocumented or unusual deposits are made. 

Summary: Buyers should stay on their toes during the days leading up to a closing.  There is a lot of binding legal work behind purchasing a home, so familiarize yourself with all the documentation to avoid complications with the loan.  Never rush at any point in the buying process.  Be as thorough as possible, especially in the last 24 hours before closing day.  Don’t hesitate to ask me questions or tell me of any concerns you may have.

Last week I was asked a very important question: What makes me different from everyone else?

Recently with all the changes, that is a great question, I took the time and put it in a formal letter for a business partner.  If you have had a good experience I ask that you email me back your experience so I can post them.  All will be posted. 

What makes us different?  This is an easy task.  What I mean by that is every day I am always “selling and proving” myself.  Whether it is to a new client or a referral I’ve just received. What I do on a daily basis is not only mortgages; it is creating and maintaining business relationships.  Because of this, colleagues feel comfortable coming to me for mortgage advice 

I’ve built a successful network of realtors, attorneys and financial advisors who serve as a testament to the service, professionalism, and execution that I deliver.  I handle my clients from application to closing.  I like to meet with them in person and I attend all of my closings whenever possible.  My clients are informed, prepared and serviced to their expectation and satisfaction.  This is why the majority of my new business comes from my extensive client base.  I never over promise and under deliver!  My goal is to have a satisfied client from start to finish!

No one person is ever successful alone.  That is why it is important to surround yourself with the most professional and reliable people you can.  As a builder, you know that the most important part of a building is its foundation.  No matter what you build, if it’s build on a shaky foundation, its quality will suffer.  With our organization, the foundation is the people I work with.  My partner Nick Cettei is the most knowledgeable person in the business.  As a consequence, we often close loans that were previously turned down by other companies.  Nick is my partner and Head of Operations for our division.  Nick understands the entire business from sales, to servicing.  We have the same goal which is to close quality loans.  Our team is all on the same page.  We will service your clients, honor our commitments, and close your loans in a timely basis.  We are very motivated to work together and service your mortgage needs.

Homeowners can make two types of improvements: Aesthetic and practical.  An aesthetic home improvement tends to focus on the transformation of a room into something more lavish; say, for example, adding Italian marble to your bathroom.  And a practical home improvement involves something like buying an energy-efficient furnace.

 

Which Of The Two Philosophies Adds The Most Value To A Home?

 

You might be surprised to learn that practical home improvements, which may seem hum-drum, is what will increase your home’s market value.  Most Aesthetic changes are based on personal design taste, and there is no guarantee your home’s next owner will share your tastes. 

 

Furthermore, housing markets vary from state to state, town to town.  According to Remodeling magazine, adding a midrange deck to a home in San Francisco recoups 131% of its costs.  In Columbus, Ohio, on the other hand, the same project will only recoup 57% of its costs.  

 

Still, there are plenty of practical upgrades available to homeowners, and to help you out we have compiled a list of three surefire home improvements that will add value and three home improvements sure to add no value.

 

Three Surefire Improvements To Add Value To Your Home.

 

#1. Kitchen Renovations – If there is one thing every home needs is a kitchen.  The trick is to stick with a classic design and use high quality materials.  Recommended renovations include painting the walls or adding wallpaper, reflooring, sanding, replacing cabinets, updating appliances and swapping out cabinet hardware.

 

#2. Create New Space From Old – Any change to a house that increases the functionality of existing space is a wise decision, not to mention one that will cost you far less than an addition would.  Attics can be turned into bedrooms, and basements can be turned into recreational rooms.

 

#3. Make More Bathrooms – Instead of adding an additional closet or small bedroom, add a new bathroom to your home.  According to Remodeling magazine, a homeowner who adds a new bathroom and spends as little as $15,789 on the vanity top, sink, bathtub and ceramic tile can recoup 78% of the cost.

 

Three Home Improvements That Will NOT Add Value.

 

#1. Swimming Pools – This may come as a surprise, but swimming pools do NOT add resale value to your home.  In fact, some new homeowners have been known to spend $300,000 on their home and then fill in the pool.  The reason for this?  Maintenance.  Pools require a lot of upkeep, which is time-consuming as well as costly.

 

#2. Custom Landscaping – As stated before, what looks nice to you may not look nice to others.  Therefore, if you spend $10,000 on custom landscaping, it does not add $10,000 to the value of your house. 

 

#3. New, Non-Standard Windows – Replacing windows is a double-edged sword.  On the one side, savings on your utility bill might justify this investment.  But on the other side, any sort of customization to the windows, like fancy trim, shapes, bays and bows, are often times too expensive of an improvement to recoup the cost at resale.

 

Summary: Whenever you are considering making home improvements, avoid a ready, fire, aim approach.  Instead, consult with a professional and learn what improvements will give you the most value, both immediately and in the future.  As mentioned earlier, some of the most hum-drum improvements actually yield the most value, while some of the more alluring improvements add no value at all.

 The highlights of the $8,000 Homebuyers Tax Credit are: 

1.       First-time homebuyers (or homebuyers who have not purchase a home in the last 3

          years)

2.       Home must be purchased between 1/1/09 and 12/1/09

 

The FHA Mortgage Limits & down payment requirements are CHANGING JAN 1, 2009

If you are looking at purchasing a home FHA – The current down payment requirement is 3% plus closing costs.  The new limits are going to be 3.5% + closing costs.

 Not a huge difference but depending on how much you are buying a house for could be significant. 

Here are the updated FHA Limits in NJ Per County.  Call me if you have any questions. My direct toll free # is 877-718-2861.

 

Are you paying too high of interest rate for your FHA Loan?

What is an FHA Streamline?  Here are some of the bullet points when looking to see if you qualify for an FHA Streamline:

• Your Mortgage Must Already Be an FHA Mortgage (any term ok)
• The Streamline Refinance is to Result in the lowering of your overall interest payments (either monthly or the term of your mortgage) ie. Going from a 30 year to a 15 year.
• In a Streamline there can be no cash out but a standard FHA Refinance can.

Here are 6 Direct Benefits to the Streamline Refinance

1. Little or No Out-Of-Pocket Costs
2. Very Little Paperwork
3. Appraisal Usually Not Required
4. No Credit Check, Income Verification, Employee Verification with your employment.
5. These Refinances can from start to finish can close in the matter of 7 business days.
6. Take Advantage of Today’s Low Interest Rates

Please contact me today to see how much money you can save now!

 

Here are 6 tips to help get your application approved sooner rather than later.
 

Tip #1. Do Your Legwork Ahead Of Time – Understand the basics of refinancing and what various terms mean before you apply.  You should also know what the prevailing rates are and whether you want to pay points to “buy down” your rate to a lower level.  Once you have that information, decide whether you want a fixed-rate loan, an adjustable or some type of modified product (which remains fixed for three to seven years before becoming adjustable).  If you decide on a fixed-rate, determine whether you want a 15-, 20-, 25- or 30- year loan.  Keep in mind, the shorter the loan, the faster you build equity and the less overall interest you pay.
 

Tip #2. Don’t Try To Figure Out Where The “Interest Rate” Curve Will Go – For one thing, it’s impossible. Nobody knows in advance how low interest rates might go, or when they’ll start to climb. Rather than trying to predict the unpredictable, just get locked in a program that works for you.
 Besides, waiting for rates to fall is usually counterproductive.  Not only might rates rise, your indecision is a sign that you’re not really serious about refinancing.  This could drop your application back to the bottom of the pile.

 Tip #3. Are There Really Any Shortcuts – Many lenders have an incentive to get your loan approved sooner.  So ask your current and prospective lenders if they have any programs to get you to the finish line quicker.  Among the possibilities:
     
 ·         Loan modification – These programs basically lower the rate on your existing loan without changing the length of the loan. Loan modifications aren’t available to most borrowers, since their loans have already been sold on the secondary market and can’t be changed.  But it never hurts to ask your current lender if such a program is available.
 ·         Streamlining – Some lenders offer a quick refinancing for current customers.  You typically pay a slightly higher rate for the convenience and speed.
 Tip #4. Use A Mortgage Professional – If you have troubled credit, an unusual financial situation or are just overwhelmed by the process, it can pay to have an advocate who knows the system to help you sort through your options.  That’s the role a good mortgage professional can play.
 Mortgage professionals do business with many different lenders and often have an inside track that can help speed up the process.  In addition, mortgage professionals can offer more personalized service and are there through the entire loan process. To find one, ask your friends and neighbors for a referral.
 Tip #5. Have Your Paperwork Ready – Here’s what most lenders will ask for when refinancing your home.
 One month of pay stubs
Your most recent W-2 forms
Last year’s tax return (or tax returns for the past two years if self-employed or employed at your current job for less than 2 years)
Bank and brokerage statements for the last month
Mortgage statement
Statements for any home equity loans or lines of credit
Homeowners insurance statement
Past commission statement(s) if you’re in sales
Smart borrowers will provide even more information, particularly if they’re self-employed or have any kinks in their finances. For example, instead of one year’s worth of tax returns, you should provide 1040s for two or three years, as well as pay stubs for two months and statements from your 401(k) and other retirement accounts.
  Tip #6. Follow Up And Follow Through – If you really want to expedite the process, you should fax, overnight or hand-carry any paperwork that’s requested.  Don’t wait for the regular mail and don’t delay responding to a request for more information.  Even short delays will send the wrong message to the underwriter.  If you don’t return your documents for a week, it conveys to the lender you’re not as excited about this loan as somebody who gets their documents back the next day.
 Keep the heat on by calling or e-mailing your loan officer every few days until your loan is approved.  Be polite and friendly, but make it clear you want the process to go as quickly as possible – remember, the squeaky wheel that gets the grease.
 
**Rates Have Dipped!  If you are thinking of refinancing call us today for a free rate quote.
  If you do not have time to speak with me today please feel free to fill out this Secure Online Mortgage Application to help jump start your loan process…  
    

Qualifying for a mortgage: Debt to income

Today everyone is hearing the words DTI- Debt to Income.  What does this mean you ask?
This is a part of how the mortgage industry qualifies someone to see if they can afford the mortgage they are applying for.

How it works:
You divide your Monthly Gross Income (Gross Income is before taxes are taken out) by your new housing payment plus all installment/revolving and legal (child support/alimony) debts. You then take that result and multiple by 100 to get the DTI Ratio.

Example: If you make $60,000 a year that is $5000 a month.  If your new house payment is $1500 (this includes taxes, homeowners insurance and PMI if applicable) + $400 (car payments, credit card minimum payments) it would look like this:
$1900 / $5000 = .38 Multiple by 100 = 38%. (GOOD RATIO TO HAVE)

A good ratio to have to qualify for your standard mortgage with out any other factors being considered should be below 42%.  When you start going above that other factors could result in getting approved for the mortgage or not. 

The easiest way to see if you qualify is to give me a call at 888-331-6300 Ext. 566 and in about 10 minutes and going through your information I will be able to tell you what you qualify for to purchase or refinance a home.