Mortgage Knowledge at its BEST!!!! (Jeff Belonger)

Another Active Rain member, Sherri Wellborn, needs our thoughts & prayers

2011-12-29T17:44:51Z

I am not on Active Rain much in the last 10 months, mainly because I started a new project that has taken all of my time away from hanging around in the 'Rain'. So I might not know many of you, but I started on AR on October 3rd, 2006. I do know this, that AR has been like a second family to me and I have met some awesome people who are now my friends. And I know there has been a lot of tragedy in the last 6 months with AR members or of their family members.

I only know Sherri Wellborn by name, but a friend of mine told me earlier today that Sherri's daughter, Ashley Malone was in a serious car accident. Ashley is in a comma and fighting for her life.

I just wanted to pass this along so we can keep Ashley Malone and Sherri Wellborn in our thoughts and prayers. And for those that know her, but didn't know of this news, that you can reach out to her.

Thanks,

Jeff

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For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

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My Nephew & his class could use some help - Christmas Choir Song Contest

2011-12-07T11:22:31Z

Hey all.... I first started on Active Rain on October 3rd 2006... I haven't been around in the last 10 months or so like I use to. Been very busy on my new project, MyPhillyAlive .... And from day one, AR has been like a 2nd family to me and still think of them as that, plus all the friendships that I have made over the years.

We have had a few members over the last several months experience some family member woes. Not sure how to put it in words, but my thoughts and prayers go out to their families, especially Missy Caulk and her family. But I like to think fo December as a joyous month, a rebirth, giving back to so many that are struggling. I am sure many of us have been struggling over the years, but there are less fortunate.

Anyhoo... I am rambling, as usual. I am just looking for some support for my nephew Johnny and his 6th grade class. They are now semi-finalists for B-101's Christmas Choir competition and voting ends tonight.B 101 is a local radio station in Philadelphia.

Johnny's class song is "Christmas List 2011" for St. Mary of the Lakes.

There are 3 classes competiting and even though Johnny is my nephew, family, I think their singing is the best out of the three classes.

A few important pieces of information :

Johnny's class song is original. The class with the help of the teacher, wrote their own song. If you listen to the part about legos, that was added by my nephew.

The other two songs are from other artists.

Yes, "Blitzen's Boogie" song has a beat to it, but... remember, you are picking the class that has the better voices. Yet, give credit to the class that actually wrote their own song. That is also talent. (just my opinion)

The class that sang "Blitzen's Boogie" has 275 more kids than my nephew's school. So more chances for more votes.

Lastly, I always try to be bias and I listened to all 3 songs twice. And I actually think my nephew's class did the best job. And to add in there again, that their song is an original.

Food for thought - Please 'like' and vote. You can only like the song once, but you can vote as many times as you want. Just remember, look for the song, because it changes in the rotation. "Christmas List 2011"

Anyhoo... just wanted to share this with you all. And to get into the holiday spirit. To also remember to thank those men and women that help protect our country. Thank them in person, buy them a cup of coffee or better yet, buy them a lunch. We had an AR member a few years ago buy 5 or so service people their lunch in the airport. A touching story. And believe me when I say they really just appreciate a thanks.

Happy Holidays

"Christmas List 2011" - Johnny's class song

~ Vote Here ~

Thanks for voting

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Needing many prayers for Missy Caulk's son, Jamie Caulk

2011-10-17T15:09:58Z

Well, I know I had updates at the bottom and had to post the 11:30 am update up top, since it was great news... not sure what to do with this update now... but this is an update from about 30 minutes ago...

11/19/11 12:10 am

From Christa... "I'd like to keep you all updated on Jamie Caulk. After the doctor's discovered blood flow to Jamie's brain, they also learned that the blood doesn't appear to be getting to the brain stem which is the part of his brain where the stroke occurred. Again, this is the part of our brain which control the heart, lungs and basic functions for life. The next 36 hours are critical for his recovery. We ple...aded for the doctor's to conduct a final apnea test which will determine if his brain is capable of forcing his body to breathe once he gets a certain level of carbon dioxide in his blood."

We really need to dig deeper than before, and pray like never before.... We witnessed one miracle this morning, needing another now...

Major Update !!!

Update : 10/18/11 @ 11:30 am - The test showed blood flow to Jaime's brain. A small step that buys him more time for God to continue working a miracle. Keep praying everyone. Need Jamie to now come out of his comma.

(Please play this as you read)

Not sure where to begin... I probably don't know many of you now, since I really haven't been on Active Rain in 2011 and because AR has grown tremendously with new faces.... and many of the older members are either gone or not on as much. So I am not sure what has been mentioned on AR. But for anyone that knows Missy Caulk, her son Jamie was in a serious car accident on Thursday. I don't know the details, except what has been mentioned on facebook. Missy has a special place in my heart, because I have gotten to know her over the years and she is just an incredible giving person that shares so much of herself. We haven't met in person, but have talked on several occasions, and I consider her like family, like an older sister. She was one of the first 20 people or so that I got to know when I first joined AR in October 2006. And because of AR and Facebook, I have gotten to know parts of her family throughout the years.

This was an update from Missy herself late Friday night.

"Please continue to pray for my son Jamie. He is in vanderbilt trauma unit. He is Intubated and needs to wake up. Bad car wreck. He has no movement at all now. When he arrived at trauma was awake. Then crashed. They brought him back and Intubated him. He has had no sedation since 2:00 but is not waking up. We are praying for a miracle."

Update from Matthew Caulk of about 24 hours ago - "The latest update is Jamie had a catastrophic stroke caused by a very rare chain of events including the way he was born. At this point we need a miracle or Jamie is going to progress and be brain dead rather quickly. Love everyone so much for all the prayer and support now. God can, has and will heal Jamie, my personal belief is Jamie and Jesus are working out those details this very moment in the Kingdom."

Matthew, Jamie's brother, had shared the song below on FB.... and about 30 minutes ago, I heard this song, the one that I mentioned above, on Pandora. And it kind of sounded like Jamie's song at first... so I ended up listeing to the whole song. Very touching.... as I listened to the song above, it reminded me on how we have many roads ahead of us, that are unknown. In this case, we want Jamie to come back on one of these roads, leading back to his family. And I just wanted to put this out there, asking for your thoughts and prayers for Jamie and the Caulk family... That Jamie comes back to us.... Please dig deep down, because I have always felt AR as a family in one way or another. Thanks

ps.. sorry if this might have been a litle jumpy, just lost for words. And for those that might not know, Christa Caulk Stewart here on AR is her daughter, who is married to our own Bob Stewart... who I have gotten to meet on several occasions. Just awesome people....

Jamie Caulk's Song

"Holding On"

Here is a quick story from the local paper - Jamie Caulk seriously hurt in crash

10/17/11 - 10:00 pm - I followed up with Bob and just got a text from Bob.... The doctors will be doing a test in the morning to determine if Jaime has any blood flowing to his brain. The doctors say he will need a miracle to survive... thanks

10/18/11 - 12:15 am - Matthew Caulk just gave me a quick e-mail update... Not wanting to give negative news, but apoparently the doctors are pushing them to make a decision.. the doctors will be meeting in the morning to see if Jamie is getting any blood to the brain. Matthew is just thankful for all the support that you all are showing, which has given them hope, more hope, in staying strong... thanks everyone....

Here is Jamie who is the anchor for the Univeristy's school news.

Miracles can happen - Keeping the faith (Zach Dunlap - story from 2008)

Visit msnbc.com for breaking news, world news, and news about the economy

Missy had shared this about 45 minutes ago.

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Halloween in Philadelphia - Spooky attractions & events in Philadelphia

2011-10-16T12:23:09Z

Halloween in Philadelphia - Spooky attractions & events in Philadelphia

Halloween in Philadelphia is fun, yet can be a frightening times. The history in Philadelphia is intriguing enough, but did you know all the spooky and scary stories that involve Philadelphia's history? I found it very interesting when researching that information.The Spirits of '76 Ghost Tour tells you such scary stories surrounding the Liberty Bell and Independence Hall. You also have the Ghost Tour of Philadelphia that not only takes you on ghostly tours throughout the City of Philadelphia, but which explores several graveyards with some Philly history.

With so many different attractions and events surrounding Halloween in Philadelphia, it can be hard to choose from. So many attractions such as Terror Behind the Walls at the Eastern State Penitentiary, to the Fright Factory, or even the Bates Motel that has one of the scariest hayrides in America.

Do you dare?

~ Halloween in Philadelphia ~

Click for Philly Halloween Events

MyPhillyAlive

For information on Philadelphia

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How many know your history about The Liberty Bell in Philadelphia, PA

2011-09-18T10:53:16Z

The Liberty Bell – Philadelphia, PA

The History of Philadelphia can be so amazing and intriguing. Learning about the Liberty Bell in Philadelphia, Pennsylvania can be an eye opener, because stories can get twisted as they are passed through generations. As I have gotten older, I really enjoy learning about American History and anything to do with or surrounding World War II. Living near the city of Philadelphia, and able to go see such sites as the Liberty Bell, which has been the symbol for American Independence for centuries, can be exciting.

History of the Liberty Bell

The original Bell was founded by William Penn. The city’s bell was used to alert the public to proclamations or civic danger ever since Philadelphia was founded in 1682. As the bell tower was being built in 1751, civic authorities wanted a better bell of quality, so it could be heard from a further distance as the city of Philadelphia grew. So they had the bell built in England and it was delivered in Philadelphia by August of 1752. The bell needed to be tested so .............

Do you know the actual stories of how the bell was cracked? Take a guess. You can find your answers here with some quick facts.

~ How was the Liberty Bell cracked & some quick Facts ~

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It's all about Philadelphia baby - Change of pace

2011-09-05T22:20:40Z

Active Rain has changed so much since I first started in October of 2006. I remember the membership to be around 6,000 or so. Now it's up over 213,000 people. Many of you might not know who I am because my blogging has slowed down considerably in 2011 and so has my overall participation. Several reasons... I have been writing for 4 1/2 years. My first 2 years, I was writing like 30 blog posts a month. And as many of you know, it can be time consuming when writing, reading, and commenting. Also, I love mortgages, helping those with questions, and to educate them. But mortgages in general are just boring. I just hit my 19 year anniversary 3 weeks ago. I love comments like the next one, but I have to be on here like 24/7, paying it forward, writing good stuff, and so much more. I just got burnt out.

Just the other day, I had a consumer call me from California who found me online and said, "you write some very good stuff. I have been reading your posts on The FHA Expert and a few on Active Rain." He then asks me a question and told me that 3 other lenders said it can't be done. I said that they are wrong, that it's allowed by HUD/FHA. Hey, I just always prided myself in putting good quality content out there that is easy to understand. But I just haven't done as well in recent years for several reasons.

Good news though.... I can take what I have learned in blogging, thanks partially to Active Rain and several of its members, and put it too good use. I have been working on a project for myself, a web site all About Philadelphia.

The general description :

At MyPhillyAlive, I want to share the excitement that the City of Philadelphia resonates. Sharing the passion within, from the people of Philadelphia. At MyPhillyAlive, I'll be talking about restaurants, fun bars & the city night life, the history of Philadelphia, Philly attractions & events, the arts, sports, and much more. I want people to add their experiences regarding Philadelphia, even if they are from out of town.

On top of it all, I will also be doing social media. Teaching those the basics, about blogging, the major social media platforms, how to engage, some tools, and reviewing the business's or individual's social media plan. I will also be doing this for my current company regarding mortgages. And I will still help regarding mortgages, but I am excited about keeping my passion going in blog posts when it comes to Philadelphia, especially the history of Philadelphia.

So... this is where I have been, since I haven't been on Active Rain in the last 3 months or so. Here is a link to my facebook fan page : MyPhillyAlive - My web site will be live in about a week.You can also find me on Twitter @MyPhillyAlive .

Thanks, Jeff

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Realtors should know basics about Mortgages in New Jersey – Especially FHA Mortgages

2011-09-02T09:26:28Z

Realtors should know basics about Mortgages in New Jersey– Especially FHA Mortgages

When it comes to realtors giving in depth advice about mortgages, it does crawl under my skin. Some of you know this, and some of you disagree with me. Some realtors think a realtor should go as far as to pre-qualify a buyer. One reason from a realtor was that he could do it better than many of the loan officers. Sure, there are bad loan officers and good loan officers. I can make the same statement in regards to realtors, and in most other professions. But lets put all of that aside, because that is not what this post is about.

So why do I bring this up then? I will say that a realtor needs to know the basics when it comes to mortgages. They are suppose to be knowledgeable when showing homes, right? How does one usually buy a home? Usually with a mortgage. And in today’s mortgage arena, there are really only four types of mortgages.

Conventional Loans – easiest of all appraisals and what is required.

FHA Loans – appraisal issues are not as strict as the rumors that say FHA is harsh. Maybe back in the day, prior to 2002. The VC sheet was even dropped from the appraisal almost a decade ago. Broken doors, cracked windows, cracks in the foundation, chipping and pealing paint, and mold are usually the biggies.

USDA Loans – people need to be aware that not only does the lender underwrite the appraisal, but that the USDA needs to review the appraisal.

VA Loans – in between conventional and FHA requirements.

Each mortgage is different, and some are more lenient than others when it comes to appraisals. But here is the part that a realtor should focus on. Many sellers and listing agents want at least a pre-qualification letter from the buyers mortgage company. It makes total sense and is not unreasonable. The pre-qual letter should state what kind of mortgage it is, right? Well, if my pre-qualification letter says that the buyer has been pre-qualified up to x,y,z; with a FHA mortgage, then that means that buyer is getting a FHA mortgage.

Here is the dilemma or issue at hand. I know of a buyer getting a home with a FHA mortgage and the sales agreement was written as an ”as is” purchase. Which means that the seller will do no repairs. Well, the house is not only a mess, but several things are wrong with it. The main issue is that it has mold, and they knew about this because there was a previous buyer, in which that transaction fell a part. Secondly, there are like eight electrical outlets that needs covering and an electrical box. Anyone with little experience regarding FHA mortgages would know that this would need to be addressed and fixed prior to settlement. Regarding the mold issue, the realtor said FHA doesn’t get worried about mold issues. The other issue is that the buyer is using a friend as their realtor who really only does commercial deals. So you can see why that realtor didn’t even pick up on these “red flags”, even though the house is being sold “as is”.

Here is a picture showing you one of the outlets. You tell me what you think.

As you can see, not only does the box have to be covered, but that the wires are exposed.

Conclusion : Realtors should know the basics about mortgages, especially FHA mortgages, since this is about 40% of all mortgages in today’s real estate transactions. In some areas, FHA mortgages are even 50% or higher in specific markets.

Let’s try to look at this another way. Would a buyer really want to buy the property if it has some major issues? Shouldn’t a realtor be focused on the condition of the property prior to listing it? If the realtor sees some potential “red flags”, and they aren’t sure, wouldn’t it be wise to call a few lenders to find out. As a sales person, shouldn’t that person know his or her product? If selling a home, not only knowing the condition of the home, but understanding the basic appraisal requirements for the basic mortgages? Just some food for thought. Because I have always said, “the stupid question is the question not asked if it has been thought about.”

So in my honest opinion, realtors should know the prime basics of mortgages in New Jersey. The primary focus should be on appraisal issues.

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Your Klout score is irrelevant to selling real estate, but it can be used against you...

2011-07-20T12:16:44Z

I thought Inna Hardison was spot on, regarding regarding Klout and what your number means, especially as a realtor. I see many people focusing on this, especially some realtors... and I share the same opinion as Inna. Besides, if you spend too much time online, socializing with Facebook & Twitter, this is just one main way of increasing your score. It still doesn't mean that you are an expert at real estate. And in my opinion, with most businesses out there. #justsayin

Via Inna Hardison- HaMedia Group Wordpress for Real Estate &Design,Print (ha media group):

Todd Carpenter wrote an interesting post about Klout last week, with the gist of it being that paying attention to Klout score doesn’t necessarily measure anything worth measuring for a real estate professional. The way to get your Klout score up is basically to talk to and be +K’ed or mentioned by other influential people (influential based on their Klout score), so at the end of the day you might be Klout-worthy or influential, just in the wrong circles when it comes to selling real estate in your specific market. Again – my interpretation, read the post, it’s short and quite good.

This post was inspired by a comment to Todd’s blog from Michael J. Maher, a Realtor in Kansas and the author of “(7L) The Seven Levels of Communication: Go from Relationships to Referrals”. He voiced a dissenting opinion, stating that Klout score is not only important to a real estate professional, but he uses Klout during his listing appointments. And I quote, from Michael’s example of how he uses his Klout score to get listings: “One of the questions I want you to ask the other professionals you interview is, what is your Klout score (and that is with a K, K-L-O-U-T dot com)? This is a beautiful question because 1) if they don’t know what it is, you can instantly eliminate them, 2) when they tell you, you can instantly compare influence, and 3) please write this down – mine is 78 and rising steadily. They say 20 means you are out there and over 50 is outstanding. What’s nice is that with one question, you will get a feel for their Internet savviness [sic.], which as you said before is important to selling your home.”

Outside of what I took to be a rather condescending tone of this particular sales pitch, it got me thinking that if I were say a Realtor in Michael’s market who happened to follow him to a listing appointment and a seller indeed asked me about my Klout score, I would quite possibly burst out laughing (after the initial shock and confusion wore off some). I would then have to point out to this seller just how misguided the question is and I would probably feel compelled to explain just how very meaningless Klout score is. I would have to tell them that having a high Klout score (or any, for that matter) would help me sell their house in the same way that being a Mayor of a particular Starbucks would.

But I don’t sell real estate for a living, and I do know what Klout is and what it does. So it made me wonder how many agents, asked that same question would blush, state that they’ve no idea what their score is (or, God forbid, what Klout is for that matter), and walk away feeling like they’d done something wrong. They’d run home and spend an inordinate amount of time getting a Klout score to compete with Michael’s, they’d light up twitter with requests for +K’s and such and do all the things they are now told matter, none of which pertain in any way to the business of helping people buy or sell real estate.

So here is my attempt at saving you some time, should you ever find yourself having to answer the Klout question: First, remember that If you are ever asked what your Kllout score is, chances are, there was an agent there before you who believes Klout score is a meaningful measure of online influence and he used it in his sales pitch. Now, feel free to explain to the seller that unless you are trying to score free movie tickets or lotion baskets, your Klout score is a pretty meaningless number as it pertains to your job. It does not measure your online marketing efforts’ success in selling a home any more than winning at Farmville measures your aptitude as a farmer. And then tell the seller how you will market their home online in all the places where buyers are looking for homes (and Klout isn’t one of those places), and explain the rest of your marketing strategy.

Lastly, feel free to tell the seller that there are two kinds of marketing, one that is all about agent self-promotion and one that is all about actually reaching a goal (in this case the goal of selling the home). In order for you to have a high Klout score you’d have to devote every minute of your time to promoting your own greatness, and that would leave very little time for staging and photographing the property, for writing phenomenal descriptions of it, and for syndicating that property every place meaningful on the Internet. In simple terms – you are a real estate professional and not a kid trying to get laid. Your job demands that you don’t waste your time on gimmicks in the hopes of getting a listing. Klout, Foursquare, Empire Avenue et. al. are games, designed to boost one’s ego, and occasionally engagements in these platforms give one a false sense of doing something important. So do what you do, and either engage in these little games or not, so long as you understand that they are just that, games and distractions, from which you might occasionally land a lead in much the same way you might land a lead from any other chance occurrence, - pleasant when it happens but statistically irrelevant.

For the record, my Klout score is 58, and it means absolutely nothing, I assure you.

Update: Michael and I have since had a surprisingly nice conversation on Twitter. I still disagree with the above, but I am glad to have met him:-)

Originally published on my blog at http://teamhardison.com

Some Recent Related Social Media Marketing Articles:

Unplugging For the Circles that truly matter

Please don't +1 me

All New Gravatars - are you missing out?

New Shiny Objects vs. Great Neighbors
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For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors

Mortgage 101 in New Jersey – Getting to know the borrower

2011-07-13T19:01:34Z

Mortgage 101 in New Jersey – Getting to know the borrower’s wants and needs

In today’s delicate world of mortgages in New Jersey and any where else, getting a mortgage not only takes understanding, but patience. I am still finding many loan officers trying to fit that round peg into that square hole. Let me explain….

I currently have a client whose realtor got him to talk to her loan officer. This loan officer has my borrower pre-qualifed for about $35,000 more than I do. How can there be such a difference?

Before I get into the differences, let’s try and establish a pattern of questions that should be talked about, when a loan officer interviews a borrower.

What mortgage payment in New Jersey would you feel comfortable with, to include your property taxes and homeowners insurance. Please give me an honest and realistic amount that you would not want to exceed.
Secondly, what areas would you prefer to live in. This is very important, because it comes down to the different property tax amounts. Depending on why you would want to live in that town or neighborhood, would help determine your monthly mortgage payment because of the property taxes.
My next question would be the type of property that you would want to purchase. Whether it would be a single family dwelling, a townhouse, a condo, etc. This helps me determine your payment as well, because there could be association dues or PUD fees based on the type of property and location.

In my opinion, I consider these 3 questions to be the most important that should be asked in the beginning, besides their name, credit scores, credit history, and income information. I actually get to those sets of questions next.

So, with that addressed now, let’s get back to my story.

My borrower wants to live in one of two places, because one of his main focuses is to be in a good school system. Keep in mind, they have 1 child at 8, another at 1, and one on the way. How do I know all of this? I got to know my borrower.

Now, the areas that they are interested in, the property taxes run about $6,000 a year on $180,000 properties. This other loan officer has them pre-qualified at $200,000, but using property taxes of $5,200. To be realistic, if buying a $200,000 home, the property taxes average around $7,000 a year. As you can see, this could become a huge issue for the borrower when shopping for a home in their respective areas, to later find out that they don’t qualify based on higher taxes. But it gets better.

In my very first question, I asked what mortgage payment that he would feel comfortable with. If I used the $200,000 property, even at the unrealistic property taxes of $5,200, he would be about $117 over his comfort zone regarding the mortgage payment. With the correct property taxes, not only does he not qualify for a mortgage, but his monthly nut would now be about $267 more than what he would be comfortable with.

Conclusion : In my 18+ years in the mortgage business, even after the government tightening down on loan officers with their licensing requirements since the beginning of 2011, I keep seeing these basics get over-looked more than they should. It shouldn’t be about who can pass a test, even though the test itself is only about 30% mortgages directly. But about asking the proper questions and preparing the borrower.

I have a borrower right now who has a 617 credit score and that their current loan officer is telling them that they need a 620. Once they get that 620, they can close. Settlement was suppose to be June 30th and he keeps saying it will be soon. yet when I reviewed their current credit, it doesn’t mean the credit guidelines. I wrote about this example that happens more than it should. Please read - Your credit score is more than just a number -

Hey, it’s a dog-eat-dog world out there. I know it’s easy to trust someone when they say such words as : “trust me”, “no problem”, I promise”, “I guarantee”, etc. Who do you trust? Get to know your loan officer, listen to how they talk, and how confident they sound. Not just the sales words that one might use. I call these words The Red Flags of mortgages. If you listen close enough, you can sometimes hear someone contradict themselves. Just food for thought.

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Mortgage Closing Costs in New Jersey – Knowing the differences

2011-06-23T09:34:16Z

Mortgage Closing Costs - The Importance of Estimating Closing Costs

Estimating mortgage closing costs in New Jersey should not be a difficult task for most, but for some loan officers, they can be way off the mark. I know this because I get about three e-mails a month from borrowers that had a bad experience. Now I am seeing a trend that is scaring me, and the consumer needs to be aware.

When first shopping for a mortgage in New Jersey, usually the first question that gets asked by the borrower is, “what is your interest rate.” Followed by, “what are your closing costs.”

In my opinion, both of these questions can be very dangerous if the person answering them doesn’t take the time to explain in depth. Any loan officer can give a rate, especially to entice that person, to get them in the door. I have already talked about interest rates and the best methods to shop for interest rates : Today’s interest rate - Please don’t hesitate to read this post and the others mentioned at the end. What I want to talk about today is the importance of understanding the term “closing costs.”

Understanding Closings Costs – I find that there are 4 major sections

Lender Closing Fees – This is a specific section to where all lender fees are listed. Best way to compare apples to apples, because these fees should be set in stone from day one and not change. All of the other fees outside of the lender fees can change, because they are purely just estimates until you are closer to your settlement date or the day of.

Prepaid Costs - This is the section to where your taxes, homeowners insurance, possibly mortgage insurance, and daily interest is listed. My biggest issue is that I have seen many loan officers mislead when it comes to the number of months escrowed for your property taxes. Each state is different and all don’t require the same number of months. Example : State of New Jersey taxes are paid every quarter, which would be 3 months. I always escrow 5 months on paper, because this could be the worst case, depending on when the last property taxes were paid. This could be a huge difference in your bottom line number, if you just shop total costs or cash-to-borrower.

3rd party charges : to include title insurance (and all title fees), recording fees, survey fee (if applicable), transfer fees (if applicable per state) – Title insurance is regulated, but some companies sometimes charge more than they should, because of kick backs to the lender.

Down Payment – I list this, because sometimes this is not discussed properly upfront or listed in the total cash required. The down payment should be listed in your total cash required or cash from borrower. Yes, it’s not considered closing costs, but can be confused when talking about total costs required.

Conclusion : Keep in mind, by law, a lender has 3 business days to give a good faith estimate in New Jersey from the time of application. But a real application doesn’t take place until 7 trigger points have been met. What should you receive when shopping for a mortgage or when speaking to a loan officer that you trust? The new term for most is ‘Itemized Fee Worksheet’, which is a duplicate of the ‘old’ good faith estimate. But just because you get this upfront, doesn’t mean that it’s ‘gold’. And one needs to review and compare each section, not just the total number at the bottom. Understand why one might be more than the other. And don’t shop by using the APR. There are a few reasons why and I don’t suggest shopping by APR. Please read : Understanding APR

Lastly, all of what I talked about is just not for New Jersey, but for every borrower in every state.

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Shopping APR (annual percentage rate) vs Interest Rate in New Jersey

2011-06-22T09:53:02Z

APR vs Interest Rate – Shopping properly

Shopping for interest rates in New Jersey aka shopping for mortgages in New Jersey, can be confusing, especially when shopping for an interest rate and shopping for APR at the same time. The borrower needs to properly know and understand the differences. It can even be more confusing when you hear different opinions from different so-called experts.

What is most common taught or thought of? Shop interest rates. Shop and compare the APR (annual percentage rate). Shop fees. So which is it?

Let’s define both Interest Rate and Apr. – This comes from Wikipedia -

Interest Rate – “is the rate at which interest is paid by a borrower for the use of money that they borrower from a lender.”

APR – “is a finance charge expressed as an annual rate.” In simple terms, it’s the cost of your credit expressed as an annual rate.

The APR rate in New Jersey will usually be higher than your note rate, which is your interest rate. Why is this? Because the APR includes certain fees which are calculated into the actual rate. The problem with this is that so many people tell you to use the APR as your measuring tool when shopping with other lenders. But not every lender calculates APR the same. Each lender by law is required to send you a Truth in Lending disclosure which shows you the APR.

So why can comparing one lender’s APR in New Jersey with another be misleading or incorrect? Because some lenders can leave some fees out that aren’t mandatory. The rules are not clearly defined. Sound confusing? It gets better. Comparing an APR of a conventional loan vs a FHA loan can be very different. The FHA Upfront Mortgage Insurance is also included in the APR as a cost, even though it’s usually added onto the loan amount. And comparing APR’s of fixed rates vs adjustables can be much different also.

So, what fees are included in the APR?

These fees are generally included :

Points – both origination and discount
Underwriting, loan processing, and document prep fees
commitment fee
attorney and or title closing fees
PMI (private mortgage insurance) or MIP for FHA (Mortgage insurance premium) or USDA or VA
Prepaid interest – Interest that is paid from the time that you close to the end of the month. The problem here is that some lenders put 1 day or 5 days down on your good faith estimate. Even if they don’t know your closing date.

Sometimes included :

Application fee
Tax related service fee

Generally not included :

Appraisal fee
Credit report fee
Title fee
Recording fees

Conclusion : What is the overall function of the APR in New Jersey? (this goes for any state) It’s supposed to measure the ‘true cost’ of the loan. Its supposes to create fairness and a level playing field amongst other lenders. In my opinion, it’s why comparing the APR could be a negative thing.

Another issue about the APR is that it’s based on the length of that mortgage. If you are applying for a 30 year mortgage, it will be based on 360 months. Keeping in mind that the average person moves out of their house in 6.7 years and/or would refinance their mortgage in 4 to 7 years. Overall, it’s extremely rare that someone would keep that same mortgage for the full length.

Keep in mind, your note rate is what is used to calculate your monthly mortgage payment, not the APR rate.

My opinion? Use the TIL (Truth in Lending) disclosure as a helpful tool to ask questions as to why it might be higher or lower than another companies’ disclosure. How would do this? By breaking down the lenders’ true costs and compare the interest rate. I would advise learning to shop your interest rate and mortgage properly.

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Regarding the Golfing Buddy Who Wants to Buy Your House

2011-06-14T09:48:44Z

Hey buyers out there.... window shopping is okay in a way, but not when wasting someone's precious time. You are either serious or not, and most people know. You just don't wake up one day and say, "Let's go look at houses". Buying a home should take thoughtful planning and consideration. Phil Faranda does a great job explaining some specifics, especially when it comes to market value. Trying for that good deal is okay, but low balling an offer in my opinion is not a serious buyer for that property. Not if you have a realtor explaining to you that it's priced in the right market. My advice? I wrote, "When is it a good time to buy a home?" -

Via J. Philip Faranda (J. Philip R.E. LLC) Westchester County NY:

There is a real estate axiom I was reminded of recently by Bill Lublin that goes like this: every piece of privately owned property in the country is for sale. It might not be listed, but it's for sale. If you knock on the owner's door and offer them market value plus enough of a premium, you get the keys. It could be a dollar, it could be $4 million. But if you offer someone enough money, they'll sell.

There is a corollary to this, which is, of course, that everyone is a buyer if they can get a good enough deal. I am not currently looking for a beachfront property or a condo in Manhattan, but if you deed one over to me for my pool table and $500, I'll sign today.

There are two kinds of buyers in any market. Those that are looking, and those that aren't. Those buyers who are looking are probably willing to pay market value. Those that aren't looking, well... do I have to tell you?

If you have an acquaintance who expresses interest in your home over golf or cocktails, you should ask yourself first why they are just finding out about it at golf or happy hour. Strange, no? Because someone who is looking would know you are for sale if they have a pulse (especially if you are listed with me). What does this tell us? Your friend will buy your place. And he'll clean your clock. Because the only reason he'll close is if he can get a steal.

If you have a buyer for your property the real work begins in many ways. It isn't all downhill after a meeting of the minds necessarily, because many of these accidental buyers are among the most difficult I have ever dealt with.

They could not be as qualified as they think they are, because they haven't bothered to speak to a lender yet.

They might not be very cooperative, because they think they are doing you a favor. This can create havoc in a transaction, because unresponsive or entitled buyers frankly suck.

You could ruin your friendship. Ever do business with a friend?

Someone who expresses casual interest in your home in an unconventional setting does not make things easier for you or your agent. We still have to navigate contracts, inspections, financing, title and code compliance, the foibles of humans in a high dollar transaction and plenty of other pitfall-laden territory. For these and many other reasons they aren't an automatic exclusion or reduction with your broker, and they may not end up being "the one." But an expensive distraction? I've had plenty of those.

In New York virtually all listing agreements stipulate that sellers will refer all interested parties to the broker. If there is a sale there, I'll make it. And if there is a headache or distraction to avoid, I'll weed it out. There is fools gold in any industry, and in ours it often comes from casual interest from acquaintances who were never looking to begin with, but would pause a brief moment for a steal at your expense.

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Fannie Mae HomePath Loans – Another great method of financing

2011-06-13T12:29:47Z

Fannie Mae HomePath Loan Program – Another great method of financing

With so many types of financing options, not all are discussed by loan officers. Many loan officers don't know much about such programs as USDA, The Fannie Mae HomePath, or My Community. The HomePath program is not known by many and is underutilized. Not only does it allow you to put 3 percent down with no MI, monthly mortgage insurance, but that you can get very good homes at discounted prices.

Highlights of the Home Path Program

Minimum of 3 percent down
Down payment can come from borrowers own funds, gift, grant, special loan programs from local or state government, loan from a non-profit, or employer
No appraisal is required – Property sold ”As Is” – I personally suggest a home inspection
No monthly mortgage insurance
Maximum of 6 percent seller help on primary residences. Sometimes Fannie Mae will list a home with a 3.5 percent seller help incentive if closed by a certain date.
Primary, Second, and Investment homes allowed under this program. Down payment requirements can change.
Eligible Properties – 1 to 4 unit, PUDs, site condos (low rise condo or building type of detached – Doc #6122) – The property must be designated by Fannie Mae on their web site : HomePath
Minimum credit score of 660 for 3 percent down. 620 scores allowed if putting 20 percent down or for 2 unit purchases.
Maximum Loan Amounts – High balance loans allowed based on the Fannie Mae high balance product (Doc#5346)
HomePath has a renovation program. The property must be designated with a renovation logo on Fannie Mae’s HomePath site to be eligible.
Title Services – Not required to use Fannie Mae’s title services – Subject to the terms of the contract

Summary – The major highlight of this program is that you can put down as little as 3 percent and have no monthly mortgage insurance. One needs to keep in mind that Fannie Mae doesn’t fix all the properties up, that they are sold “As Is”. And I would recommend getting a home inspection.

One thing that does need to be recognized is that these home prices are not negotiable. The reason being is that Fannie Mae has already discounted these homes, some of which are being sold for much less. The main reason is that these are homes that have foreclosed upon that Fannie Mae is holding on their books, and want to get rid of them as quickly as possible. Lastly, these homes can be found on Fannie Mae’s web site, Fannie Mae HomePath homes

Find a Fannie Mae home now – Click HomePath homes

Realtors can sell Fannie Mae REOs. Become a FNMA approved listing agent – Click here

Realtors Resource page for selling/buying – Click here

Realtors... would love to hear your opinions if you have had a buyer use this program.... and how did commissions work for you? Listing agent? Selling agent?

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“Today’s Interest rate” – How to Shop for Interest Rates Smartly

2011-06-10T10:35:44Z

Shopping for Mortgages & Shopping for Interest Rates Smartly

You now want to buy a home and need a mortgage. You would think it would be easy to call around to mortgage companies and ask, “What is today’s interest rate”. Sounds simple, right? Au contraire mon frere…. On the contrary.

There are a few misconceptions that many have when shopping for interest rates.

That all lenders have one basic rate to offer

That big lenders or big banks have better rates than smaller lenders and can give discounts

That referrals will get you a better interest rate

All lenders have many different types of interest rates, which is dependent on many different factors. The end result, all rates should be relatively close, as long as you aren’t being deceived or that your rate will be baited and switched. Why should interest rates be the same or very close? Because we all get the rates from basically the same place, which are dictated by investors on Wall Street.

Larger Banks/lenders vs smaller lenders – I just heard from a potential client shopping for a mortgage that her realtor told her that BofA can give her discounts on the rates. First off, this coming from a realtor that is speculating. This is a blanket statement, because again, way too many factors involved when determining interest rates. Food for thought… Just because a bank or lender might be servicing your loan from the get go, doesn’t mean that is how they can offer lower rates. In reality, even that bank or lender that is servicing your loan, has sold bits and pieces of it to other investors. Big Bank A might own 70 percent of your loan, even though they are servicing it, yet two other investors might own the rest of the loan. Hence why some foreclosures were becoming difficult at times, trying to determine who owned how much of the primary mortgage.

When it comes to getting a referral from a friend, co-worker, realtor, etc; one just can’t assume that all will go well and that you will get the best deal. I have three new stories just from the last several weeks that would make you cringe. Story A – My sister referred me to a friend of hers after hearing of her most recent mortgage story. Back in December, this couple tried refinancing and was promised an interest rate of 4.5 percent. After about 2 months, they finally found out that this loan officer never locked in their interest rate. And this was a referral from a friend. Just recently, they got another referral from someone at their church. I happened to get the call 3 days later and after reviewing the different cost sheets, I was about $5,500 more in total costs. But wait, the other loan officer was very misleading in what they estimated. This person didn’t calculate their 30 days of interest in the pay off, was $100 lower per month on the property taxes, only escrowed 3 months worth of taxes when I estimated 5 months, and two other items. All of these items aren’t lender related, but 3rd party estimates. After it was all said and done, I was about $48 off. Yet this person had an interest rate that was 1/8 percent lower in me. And guess what, there was one important question that wasn’t asked by the other loan officer, in which carried a pricing penalty from any lender/bank for this particular loan.

Many different factors involved when shopping for a mortgage or shopping for an interest rate

Goals – What are your goals, for the next 3, 5, 7, and 10 years. This could help a good loan officer determine if you should pay points or not, or what mortgage program to put you into.

Credit scores- Your credit scores are a huge factor when it comes to determining your interest rate and or the penalties because of your credit scores, aka fico scores. – Understanding credit scores – Read the series at the bottom

Interest Rate Lock-In Period- Such an important detail that is usually not mentioned to borrowers when shopping for that all almighty interest rate. How long is my interest rate good for and when can I lock it in should be talked about. I once lost a deal to another loan officer who was beating me out by 1/8% and $500, but found out that he couldn’t lock his rate in until the appraisal came back. This could be a difference of 3 to 7 days, and interest rates could get worse. Besides, the loan officer in a few days could just raise the rate an 1/8% and say that rates got worse, but did they? Key Point – You need to shop on the same day, because rates change daily, sometimes twice in one day.

Loan Amount – Believe it or not, the size of the loan amount will have some impact on your interest rate. All lenders have a basic profit margin that needs to be met on each loan. The lower the loan amount, the more points it may require or a higher rate that pays more premium back to the lender.

Size of down payment – This holds more true for conventional loans, because Fannie Mae and Freddie Mac have pricing hits depending on how much you put down and what your credit scores are. Please read : Conventional pricing hits

Conclusion – One size does not fit all. It might seem simple, like when buying a new television, as long as you know the model that you want. Then all you have to do is pick the 3 nearest stores and see who has the lowest price. As you can see, when shopping for an interest rate, there is a lot more involved. Something that I have witnessed 3 times in the last 2 weeks are borrowers that weren’t locked into their rate and then rates changed on them. The moral to this story is that any loan officer can bait you with a little better rate at first, if they aren’t going to lock you in at time of shopping or mortgage application.

Lastly, just because one has advertised a low rate, doesn’t mean it’s true. All of the factors that I mentioned above need to be found out before offering any such rate.

On another note, I have included some very important articles below that should help you better understand the mortgage shopping process.

For more info regarding shopping for interest rates and shopping for mortgages, please read :

I want the same interest rate my friend got

Locking in interest rates – Knowing the facts

Low interest rates published on the internet

All Mortgages should cost the same – by : Ken Cook

Finding the best interest rate

Mortgage Advertising can be very deceptive

The myths about Zero point mortgages vs paying points

Shopping for mortgages

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Mortgage Market Report - Mortgage Interest Rates hit historic low for 2011

2011-06-03T10:23:04Z

Mortgage Market Report - Interest Rates hit historic low for 2011

As of yesterday, mortgage interest rates were hitting historic lows for 2011. Today was the key focal point if rates were to continue to go lower based on non-farm payrolls and on unemployment. As of this morning, the news is reporting that non-farm payrolls only increased by 54,000 in May, significantly less than 150,000 increase that the economists had been expecting. Regarding the private sector, private employers only added 83,000, instead of the 180,000 that was anticipated. And unemployment rose from 9.0% to 9.1% the month prior.

Depending on your credit scores, the type of mortgage, your down payment, and your loan amount, interest rates yesterday were from 4.375% to 4.875%. As of right now, the FNMA 30 year 4.0% coupon is up 41 bps at $101.22 and the US 10 y T-note is up 59 bps at $101.38.

Summary : What does this all mean for today? That interest rates should be getting even better today. Another reason for the MBS’s and bonds getting better is because it looks more attractive for those countries overseas such as China, who look for good investments.

For those of us that keep track of this information, I had been advising clients to wait until today’s news, even though rates were the best that we had seen for 2011. I will be locking in several borrowers today that will be closing in the next 10 to 30 days. Yes, there are a few indicators that could even drop rates a little more for next week. But in my experience, no matter how one might tend to read the markets and those indicators, just a small hiccup could reverse all of these gains. And what goes down, will go up, but ‘when‘ is the question. Some so-called experts will tell you to float cautiously, but with interest rates literally dropping about 3/8 of a percent just in the last two weeks, it’s my opinion that it would be a huge gamble to lose these excellent gains.

For more news like this, you can always go to the www.fhaloansfhamortgages.com

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Comparing FHA loans and Conventional loans with 5 percent down – What is the best fit?

2011-05-25T09:25:48Z

What is the best fit when comparing FHA loans and conventional loans?

Based on my opinion over the years, the loan officer should focus on your credit scores and down payment that you can afford, when comparing mortgage programs. But keep in mind, the main focus should be what you can afford regarding your monthly mortgage payment. Overall, one needs to understand how mortgage insurance works and the guidelines for mortgage insurance in order to put you into the best mortgage program for your situation.

FHA loans in many areas make up about 35 percent to 50 percent of all mortgages used in the last 12 months for many reasons. And there are still some FHA rumors that state FHA loans are more expensive because of the upfront mortgage insurance or because of the new FHA monthly mortgage insurance changes that just took place April 18th, 2011, hence why I wanted to share this comparison.

No matter what mortgage you choose, you don’t need 700 credit scores or 20 percent down. But you do need to understand the differences for many reason, hence why I want to show this comparison between FHA loans and Conventional loans.

The example below is based on a $250,000 purchase price with 5 percent down. One reason why conventional rates are a little higher and more costly in this scenario as in FHA rates is because Fannie Mae and Freddie Mac have added penalties per se. If you are putting down less than 30% and or your credit score is less than 720, certain fee penalties would apply to you, which would increase your rate and or points. The credit score that I am going to use is 699 and I will still show in this example that FHA loans are cheaper (depending on your goals), even with 5 percent down.

***And keep in mind, some lenders have penalties on FHA mortgages with credit scores under 640 or can’t do them period. And beware of those that promise you a mortgage with scores under 620. It can happen, but they aren’t as easy as advertised and are more expensive.***

Disclaimer : These rates are examples of today’s pricing with the same lender fees, and the spread shown in the example is the same profit margin for both sides. The conventional rate also includes the penalty for the 699 credit score, hence why the interest rate is much higher.

One main fact is that you will be adding $2,375 onto your principal balance if you did the FHA mortgage because of the FHA one-time mortgage insurance premium. But as you can see, in 5 years, the principal balance is only off by $571.

Simple math. You are saving $69 a month and technically put $3,569 into your pocket in the first 5 years.. This is why you need to know your short and long term goals, and to have a budget in mind, prior to buying a home. To learn more about this, please read : How much can I afford.

Another thought? You still need to be approved by the mortgage insurance company regarding your conventional loan. And yes, there are other types of mortgage insurance programs that one could qualify for, but they usually require higher credit scores. Also, if you wanted to put less down on the conventional loan, you would need higher credit scores. With a FHA loan, the guidelines state that you can put 3 1/2 percent down with a credit score of 580. But again, it’s up to the lender and their overlays.

FHA Myth – Some people, including loan officers, without doing the math, will say that FHA loans are more expensive because of the Upfront Mortgage Insurance. Because in this scenario, you are adding $2,375 to the FHA loan and because of the new monthly mortgage insurance change. This kind of mortgage myth needs to be squashed on all levels. It starts with the borrower’s goals.

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Want to be a blogging expert on debating a specific subject??

2011-05-24T10:27:09Z

Want to be a blogging expert on debating a specific subject?

Sooooo do I. The one great thing after writing blog posts for 4 1/2 years is that I am always learning from others and from myself. There are things in the back of my mind that I always try to do and not to do when writing my blog post. One pet peeve of mine is fact vs opinion. I read so many posts that seem like they are factual, yet it's really the authors opinion. And in most cases, the author never tells you, "hey, this is my opinion." I think that phrase alone and by adding some facts, can go a long way in any blog post, especially when debating a topic or voicing your opinion.

Three successful tips when writing a controversial blog post (of my opinion)

1.) Think ahead of those that would read your post and comment before submitting the final piece. Try to think of other questions or angles to my topic that a reader might come up with. And if my topic has several different angles or sub topics, and that I want to keep everyone on topic, to basically state this in the beginning so comments don't get off topic. I just wrote this post the other day and here is an example. Is 20 percent down the solution? Would the real estate market then crumble?

As you can see, I am directing people what to focus on, since another hot topic that is part of the 20 percent down issue is QRM. I still had someone that had to bring up lenders having skin in the game, because they didn't click on my link, which would be about buyers only. So I went and added "for borrowers". Believe it or not though, still a handful of comments still talked about QRM, when I even stated that was not what I wanted to talk about.

2.) When I am debating or arguing my case for a specific subject, even though I am against one side, I usually try to show pros and cons of both sides. I want to show that I thought this out, that I am open-minded about the subject, and to keep the conversation flowing. But at the same time, to be able to make my point, to show why I am on that side, yet trying to keep it fair from all perspectives and angles.

3.) Lastly, as I stated in my opening paragraph, to always put some sort of disclaimer in my post that this is of my opinion. Even if I state facts, all posts are opinionated. The confusion can be when someone gives their opinion with facts, but doesn't separate this. And when doing this, it's easy to read the whole post as a fact, which can be misleading to so many when looking for facts.

Summary : Yes, many facts can be that of opinion or judgment. Or just the facts that the author wants to reveal, to make their point seem legitimate or correct. But I truly think if you look at your topic from both sides of the fence, giving pros and cons to both sides, this can go a long way. Trying to look at the topic from both angles, even if you feel strongly about one side, will hopefully show your readers that you not only took it seriously, but that you tried looking at this as a jury would during a trial. I try this often when debating certain topics and I get many comments that recognize this and it can usually gives my readers a different perspective on the topic at hand.

Ps... this post is based on my opinion, but what I have found successful over the years when writing blog posts.

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For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

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Is 20 Percent Down the Solution? Would the Real Estate Market then Crumble?

2011-05-21T13:39:15Z

Is 20 Percent Down the Solution? Would the Real Estate Market then Crumble?

There has been a lot of talk about QRM, 20 percent down, and much more. For the purpose of this post, let's forget about QRM, politics, what types of mortgages this will affect, and just keep this simple. More skin in the game for borrowers is the issue. Yes or No.

I have been wanting to talk about this for a few months, but I was inspired after reading this post by Bryan Robertson. ~ Why is NAR fighting the 20% rule in QRM? ~ Regarding Bryan's post, the one thing I do agree with is that home ownership is not a right, but a privilege. And that some lending guidelines were too loose.

I am wondering if we can agree on two things. Can we all say that the economy is not as good as it once was prior to 2006? And can we say that the economy is dependent on the real estate market by over 20 percent?

Three of the biggest arguments that have been floating around regarding the mortgage mess and our economy.....

1.) The lenders were too greedy with some of their mortgage programs, such as 100 percent no doc and stated doc loans.

2.) Little skin in the game caused the mortgage meltdown.

3.) Loss of jobs, loss of income.

One main issue that bothers me profusely, the reasons why people choose to walk away from their homes, because they were upside down on their homes, upside down on their mortgages. And so many state the main reason for this was because they should have put more down as a down payment, because home values dropped. Here is a comment that just scares me...

"The more skin in the game, the more likely one will fight extra hard to protect their investment. There's no two ways around it."

Then please explain the hundreds of thousands of strategic defaults that have plagued the foreclosure numbers. I have spoken to a dozen or so myself that had no problem financially in paying their mortgage payments and other debts. But just because they were upside down on their home, they walked away. Can I ask one simple question? Why? What was the main reason for buying that home in the first place? This will be another blog post topic in a few days.

Read : More than 28% of homeowners are underwater

You want shocking input?? Kenneth R. Harney wrote Who's most likely to walk away from their

Jeff Belonger's Opinions Regarding Less Down or More Down

~ Pros of 20 percent down or more ~

Security - More skin in the game makes for a better buyer, homeowner. Me? False hope that it will keep more people in their homes, that they are better buyers.

Quick Rebuttal - Define better buyer. FHA has been around since 1934, allowing for 2% to 3% down payments. You also have VA loans and USDA loans that allow for 100 percent financing. All three of these types of mortgages have been performing well up until 2006, when the whole mortgage meltdown began. One can say that subprime loans had a lot to do with this. Loan officers putting borrowers into loans with higher rates or worse subprime program types, just because it was easier than a FHA loan, making it easier for the loan officer, but worse for the borrower. Sorry people, but this is a fact that I have witnessed first hand and even asked certain loan officers during that borrowers mortgage process.

~ Cons of 20 percent down or more ~

Stripping away Cash, Savings, Reserves - If I had a choice of putting down 3.5 percent or 5 percent over 20 percent, I would do the lesser. Why? Unless I had a million dollars in the bank, it allows me to have access to more cash on hand for emergencies. And I have shown in prior blog posts, the differences with 5% down compared to 20% down. Besides, your house is no longer an ATM. It's much harder to get cash out once you put it down.

Quick Rebuttal - The buyer would just have to save more to have cash left over, having reserves.

Negative Impact of more down - The borrower might have nothing left over for emergencies such as a loss of job, a death in the family, or even to fix important issues regarding the house.

Economy gets even worse - Would more jobs be lost if the housing economy dried up? In my opinion, 110% yes. Anything from new construction, to remodeling homes, to home repair stores, and those that make such materials for everything just mentioned. Kind of like the food chain.

Quick Rebuttal - I honestly can't think of one, can you?

Let's look at some facts.....

How long do you think it would take for someone in today's economy to save 10 percent, or even 20 percent. Here are some figures compiled by specific groups and independent companies. See chart :

Let's see, it could take the average person 9 years just to save 10 percent down. What so many fail to realize, that we are talking about the average person. There are so many different factors that play into the role of saving money.

Does a family only have one household income? How many in that household?

The cost of living is higher than it has been in recent years and decades. Just look at the food prices and or gas prices, which in many cases, out-weigh what one makes on a monthly basis.

Unknown debts that the average person does not always have, such as student loans, taking care of their parents, medical issues, etc, etc.

I have heard and seen most of it regarding these reasons in my 18 years in the mortgage business. It's been stated by several groups and those doing surveys and studies, that "High down payment and equity requirements will not have meaningful impact on default rates."

Let's look at a $250,000 purchase price. If I put 5% down, my mortgage would be $237,500 and if I put 20% down, my mortgage would be $200,000. Do you know what the difference in mortgage payment would be? $201.00 a month. Yes, there will be mortgage insurance, depending on the type of loan program. Mortgage Insurance can be a confusing topic and can also be written off for now. Read : Mortgage Insurance

But let's say your mortgage insurance is an extra $180 a month. If you out 20% down, your total savings is $381.00 a month. But wait, that is an extra $37,500 out of pocket. Ouch... That is about 8 years of saved monies. As you can see, buying a home takes careful planning and consideration. When is it a good time to buy a home?

Conclusion :

We need to compare Apples to Apples - People keep comparing today to the 1970's and 1980's when their parents were able to save and put 20 percent down. Many say that it was just as hard back then as it is now to save. I disagree because of several different factors.

By forcing higher down payments, would this not penalize the responsible borrower? Which would make home ownership more expensive or out of reach to millions?

In my opinion, I consider Cash is king and a necessity to survive in today's economy. Since many are screaming about at least making it 10 percent down, here is an example of 3.5% down vs 10% down.

What are your thoughts and opinions? For those reading this, even though I am strongly against making more down a requirement, I still always try to respectfully dissect both sides with pertinent information so I can make a sound decision.

Adam Cohn wrote this post (I love stats and facts - research):

QRM would have cut out 39% of homebuyers in 2010: CoreLogic

Solutions? Calls to Action?

Understand the facts before screaming for such ludicrous changes that could kill the housing market. I do believe in tweaking some of the mortgage guidelines. Such as :

Stronger debt ratios

Required reserves

Here are some scary facts and not just opinions.

Understand the types of people that would truly walk away from their homes.

Maybe the economy would rebound better if the mortgage servicers improved. Recovery depends on mortgage servicers?

Maybe higher escrows withheld on jumbo loans? Fed rules on jumbo escrow requirements

Call to Action - If you believe in my thought process, print or e-mail this and send it to your Congress person, to other realtors, agencies....

One of my calls to action that I wrote about in June of 2009 :

Call to Action - We must fix the real estate market ourselves !!!

Jeff's cliff notes (remember those? In my opinion, here are 3 excellent comments out of the 240 + from Bryan Robertson's post mentioned above. Keeping in mind that I have only read about 60 of the comments and not in any order)

Karen Hunt - comment # 167 - Unemployment, tax structure, and lax banking guidelines.

Brian Hoffman - comment # 169 - If forced to put 20% down only, economy would crash.

Dave Jerierski - comment #203 - 20% doesn't guarantee loan payments.

I wrote about tougher guidelines about a week ago.

Realtors can't sell!!! - Because of Tight Mortgage Guidelines?

Are mortgage guidelines actually tougher? I don't really think so. I think it begins with the loan officer properly educating both the consumer and realtor, and setting expectations to a certain level before one sets out to buy a home. How many of the loans that didn't closed in the last 12 months were probably do to loan officer errors not understanding credit, credit scores, or their lending guidelines.... and not just because the person didn't qualify, which should have been mentioned previous to the agreement of sale.

"Fight or argue with facts and not just your heart on your sleeve."

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For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

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Understanding Mortgage Insurance – What does it all mean?

2011-05-19T10:39:15Z

Understanding Mortgage Insurance and the different types

The keys to home ownership can be tricky and confusing, unless handled by a true professional loan officer. You’ll sometimes hear loan officers and or realtors talk about one mortgage program over the other, telling you how great it is or that the monthly mortgage insurance is less than the other program. But wait, one main ingredient is still missing in this whole equation. What are the credit scores, aka fico scores. Why is this important?

When comparing a conventional loan to any other type of mortgage loan, many of the MI companies (mortgage insurance) will have certain restrictions when it comes to credit scores, the percentage of the down payment, and area restrictions.

Let’s quickly look at the four major types of mortgages.

Conventional Loans – If you have less than 20 percent down, you are required to have some sort of mortgage insurance. The standard mortgage insurance is called monthly mortgage insurance. There are such programs called LPMI (Lender Paid Mortgage Insurance) and BPMI (Borrower Paid Mortgage Insurance). ps.. Mortgage Insurance doesn't always fall off when you hit 78% LTV (loan-to-value). Specific guidelines must be met still.

FHA loans – You have upfront mortgage insurance and monthly mortgage insurance. No matter if you have 20 percent or more down, you are still required to have monthly mortgage insurance. Depending on your credit scores, even with 20 percent down, a FHA loan still might be your better option. FHA raised it’s mortgage insurance as of April 18th,2011. New FHA mortgage insurance – Reminder – If you do put 20 percent down, the mortgage insurance falls off in 5 years.

USDA Loans – As it stands, there is no monthly mortgage insurance. But this will change come October 1st, 2011. New USDA monthly mortgage insurance.

VA Loans – There is no monthly mortgage insurance.

Summary of mortgage programs : Three of the major types of mortgages mentioned above, FHA loans, USDA loans, and VA loans, all have some sort of upfront mortgage insurance. Each one has a different name for it.

Here is a comment that I just heard the other day.

“The FHA Premium Rate Increase Makes conventional MI a Better Option for Many Borrowers.”

To me, this is a blanket statement, and a huge reason why so many people get put into the wrong types of mortgages. Sometimes the basic reason was because it was just easier for the loan officer and not what was better for the borrower. Mortgage Insurance guidelines change, but as of right now, you typically need a 680 credit score of better when putting 5 percent down. Many MI companies want a 700 credit score. When you hear about these special MI programs such as BPMI, you need a 700 or 720 credit score.

Summary :

When it comes to conventional mortgage insurance, not only do you need specific credit scores that have to be higher, but the loan gets underwritten again by the MI company. When it comes to FHA loans, it’s a one time thing. Again, you need a professional loan officer that understands these differences and who will dissect the different types. It might seem easy to some, but if not done correctly, it can be a long and confusing process.

The bottom line, just be careful of what you hear out on the street. Blanket statements could be expensive.

~ Credit Score Series ~

Do I need 20% down and or 700 credit scores?

Understanding your credit and your credit scores

Your Credit Score is more than just a number

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For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors

Realtors can't sell!!! - Because of Tight Mortgage Guidelines?

2011-05-14T13:08:52Z

Do you feel that today's mortgage gudelines are hurting realtors from selling more homes?

Do you think it could be the buyer not being in a good position?

People, I get the fact that lending guidelines have become more strict over the last 12 months. I think I have seen it all in the 18 + years that I have been in the mortgage business. But in my honest opinion, I think the biggest hurdle has been the credit score requirements. But is it a challenge that can be over come in a short time period? Read more for my answer/opinion on this topic.

What prompted me to write about this was this article by Christine Ricciardi - Real Estate agents want subprime alternative for too-strict underwriting - Here are a few statements from the article.

I wish I could have interviewed all of these real estate agents. My question would be, "How are these down payment requirements too stringent?" "Could you please give me examples."

Let's review some facts. You can still get a FHA loan with 3.5 percent down. You also have USDA loans and VA loans which allow for for 100% financing. Sure, there are restrictions for these two types, but it is available. In regards to conventional loans, you can still do 97 percent financing, but the credit score requirements are extremely higher, which is why FHA would work out for more if it was a down payment issue.

Don't get me wrong, I am not one of these "must have skin in the game" type of advocates. FHA loans have been around since 1934 and for the most part, the down payment requirements were 2.25 percent down. So it's up to 3.5 percent now. Yes, depending on the purchase price, that could be another $1,500 to $4,500. But we aren't talking about $10,000 to $20,000 more. People need to stop writing that now is a great time to buy. And buyers need to stop thinking that this is the best time. It's always a great time to buy, when you are in a good position to buy. Read : When is it a good time to buy a house?

Ouch... I could write a whole book on this statement. "needing a High quality subprime mortgage program" Let's revisit history. In the late 90's, the government forced Fannie Mae and Freddie Mac to make housing more affordable. This is when they came out with 100 percent financing and better yet, when they allowed these same buyers to have back-end ratios of 55 percent. My common sense says that you are just looking for trouble with this equation. We are talking about 55 percent before taxes being taken out. The borrower's gross income. Then the subprime market grew leading into 2000 to 2005, to where these investors would allow 50 to 55 percent one-time ratios, which would be a part of your front-end.

Quick education. Your front-end ratio is your principal & interest, plus taxes and homeowners insurance divided by your gross monthly income. Your back end ratio is the same formula, but adding on all monthly reoccurring debt, such as car payments, credit cards, bank loans, student loans, etc, etc.

The end result was that many investors got greedy and loosened the subprime guidelines. I knew loan officers that would put a decent borrower into a subprime loan because it was easier and quicker than getting them a FHA loan. Yet the FHA loan would have been much cheaper.

My problem with this statement? People making blanket statements, but not offering up solutions. Give me a few good examples of what the "subprime mortgage" should allow. I hated when people were calling FHA loans the new subprime after the demise of the subprime industry. But from what I know after 18 years, you really can't get much better than an FHA loan that still has decent guidelines than what a subprime mortgage would allow with less down. What could be the main argument? Credit scores....

The BAD Credit score argument

I don't want to point the finger at just realtors, because I think many loan officers are just to blame when it comes to credit scores. In my opinion, it's called, "setting your clients expectations to a certain level". We all want to help now. But many mislead or make it sound easy because they might have a 600 credit score program, but don't fully understand it. In my opinion, people should not be waking up one day and say, "I want to buy a house tomorrow". It should take some careful planning and consideration. In reality, people shouldn't be buying a home if their credit and finances are screwed up, especially in the last 12 months. Yes, I understand that things can happen unexpectedly.

Let's take a look at the credit scores. Many lenders want 640 or higher. Some of us can still do down to 620 or even 600. I get that there are some people with 590 credit scores who have decent credit, that would be in the category of 'less than perfect credit', but that they are still a good risk. I just closed on a VA loan in which the borrower had 592 credit scores in December of 2010. When they went to closing, I had their credit scores up to 638. I have another borrower who had a mid score of 598 in January of this year and as of now, their mid score is a 645.

Conclusion : I am hearing many complain that it's nearly impossible to sell homes because the mortgage guideliness are way too strict. Yes, you have issues when it comes to conventional loans that will only allow for a 45 percent back-end ratio if the credit score is a 720 or above. Or a back-end ratio of 41 percent for those with a credit score from 680 to 719. All of this is because of the MI companies, the mortgage insurance companies. And yes, you can do lender paid MI and such. But with a FHA loan, you don't have to worry about all of these differences. But given a few of my examples above, you can easily see that if a buyer speaks to a very qualified loan officer, they should be able to buy in 6 months. Sorry, but the mentality with so many realtors and buyers is that they must buy NOW.... and that is not the case. Waiting 3 to 6 months to get their stuff in order is not going to kill anyone. Besides, as I mentioned, buying a home should not be a split second thought, that you get up and do it now. As a buyer, if you know you don't have the best credit now, get with a true professional to help you get to that point. Articles such as the one I mentioned above, makes it sound like it's nearly impossible and because of it, it's hurting the economy. Yes, the economy needs the housing market. But there are way too many tracks that lead to the main station. One needs to truly understand the ins and outs of mortgages, and not just what they hear from each other, aka, water cooler chit chat. Just think about it...

UPDATE as of 5-14-11 2:15 pm - I just did some more reading and apparently some of us seem to be on the same page or have some of the same thoughts. The bottom line, many people want it now, and not to work for it. Two excellent reads below... please take the time to read these.

George Souto wrote : I want it now!!

Lenn Harley wrote : Mortgage loan denied!!! What??? I have excellent credit!! What's going on?

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Been approved for a mortgage in New Jersey? What not to do... DON'T......

2011-04-23T09:31:08Z

There comes some responsibility and understanding of the mortgage process when buying a new home. Some think that just because you are approved for a mortgage in New Jersey, you can sit back and wait for the closing to happen now. There are many things a buyer must be careful of, even after they have been approved for a mortgage. This isn’t always explained by the loan officer, hence why I wanted to give a list of items.

What not to do after being approved for a mortgage, when you have received your commitment letter. DON’T …..

DON’T change jobs or quit your job. If you change your job in the middle of the process, this could delay your closing.
DON’T keep shopping for a new mortgage. This could effect your credit scores and either cost you more money or deny you for a loan.
DON’T apply for new credit after you have applied for a mortgage. Wait until after you have moved in.
DON’T pay off any collection accounts and or judgments unless told so by the lender. You need to be careful of such advice once in processing, because it could change your credit score for the worse. Understand your credit and what should be done.
DON’T co-sign on any loan for anyone until you have closed on your loan.
DON’T start with a credit counseling agency when starting the mortgage process. If your credit has to be pulled again and this is found out, some mortgage programs don’t allow it in a certain time period.
DON’T spend your money or make any changes from your savings/checking accounts or 401-k plans. No large deposits or they will have to be explained. If taking money from your 401-k plan for the purchase of your house and depositing it into your checking account, make sure you save the paper trail for the lender, showing what you did.
DON’T disconnect or change your home or cell phone number until you have closed on your loan. Lenders need to verify your home number, even if you use your cell number instead.

Summary : Some of the things mentioned above should not be done when even shopping for a mortgage or while even in the mortgage process. Most of all, none of the things mentioned above should be done once you have been officially approved for a mortgage in New Jersey with a commitment letter.

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What are the real truths behind such FHA Rumors & FHA Myths in New Jersey???

2011-04-11T20:53:27Z

FHA loans in New Jersey and in all other states in the last 18 months have become the popular choice when choosing a mortgage for many different reasons. It has been stated that FHA loans now represent about 35 percent of all financing options. And because of the popularity and usage of FHA loans, there seems to be more FHA rumors or myths circulating. Let’s review some of these so-called myths.

Before I begin, just a little quick education when it comes to mortgages. You basically have 4 types of mortgage programs.

FHA loans- This type of loan can be used by anyone and not just first time homebuyers. But only when buying a primary home and not a second home or an investment property. Keep in mind, if you currently have an investment property that does have a FHA mortgage, you can refinance this under the FHA streamline program.

Conventional loans – Can be used by anyone, even if it’s for a second home or an investment property.

USDA loans – This type of loan has income restrictions and is restricted to specific areas. More info on USDA loans, aka Rural Development loans.

VA loans – Veteran loans can only be used by those that have served and or are currently serving in the U.S. military. There are specific requirements when it comes to reserves and or active duty.

.

FHA Rumors and FHA Myths -

FHA loans are more expensive than Conventional loans -

I think this is my most favorite myth of them all. Sure, any mortgage program can change each year, but the basic premise is always the same. In my opinion, the main reason would be because of FHA’s upfront mortgage insurance. Technically it’s considered a closing cost, but you have the option of adding it onto your loan, so you don’t have to pay for it out of pocket. In many cases, this wouldn’t make FHA loans more expensive. You need to look at the end result. And you have to understand that conventional loans have higher penalties when it comes to your credit score and or the percentage of your down payment. You just need a good loan officer that can properly show the difference between a FHA loan and a conventional loan, even with 10 percent down.

FHA Loans take forever -

Some state that FHA loans could take from 2 to 3 months. Keeping in mind that any loan is taking a little longer now because of all the checks and balances when it comes to the mortgage process. It just depends on the loan officer and or lender that you choose.

FHA Origination Fees -

All FHA loans have origination fees. False. Another rumor is that FHA gets part of the origination fee. False. I actually had a borrower that was told by another loan officer that FHA got part of the origination fee. Please read : Understanding FHA origination fees

6 percent seller concession has been reduced to 3 percent -

FHA has talked about reducing the seller concessions over the last 18 months, but it’s still in it’s talking stages. So you can still get up to 6 percent seller help on FHA mortgages.

FHA appraisals are more harsh than conventional appraisals -

In reality, why would anyone want to purchase a home that might need major repairs that aren’t mentioned in an appraisal. Sure, appraisers are suppose to be a little tougher when it comes to a home requiring a FHA appraisal. In many agreement of sales, there is usually some sort of cost that the seller would pick up. If the house was truly in bad shape, that type of home would be perfect for someone to do a FHA 203-k loan, which would allow you to add the cost of all repairs into the mortgage. The main reason for this rumor is mainly from those realtors that just don’t have much experience with FHA loans or because these were rumors from the 1990′s that still circulate.

Sellers should not accept offers from a buyer that is FHA approved -

There are a few more specifics when it comes to a house being FHA approved and sometimes even sellers should get their house inspected before it goes on the market. Please read : Sellers should get their home approved also

FHA loans are for those with bad credit -

First off, one would need to define bad credit. This is usually a key phrase for those to advertise to people who have bad credit. A good term would be, borrower’s with less than perfect credit. But overall, the base rate for a conventional loan and a FHA loan is pretty close to being the same. It just comes down to how someone sells it to you. As I mentioned above, conventional loans can be much more expensive if you have less than 30% percent down and or credit scores less than 700.

Remember : A FHA loan is not just for first time home buyers.

Summary : Overall, I just want people to be careful of such rumors or myths when shopping for mortgages in New Jersey. Checking the facts is important, because some people are just true sales people and don’t know any better. It just comes down to speaking with a very qualified loan officer who will ask the borrower about their goals and figure out what loan best fits that borrower. Sometimes a loan was done for that borrower because it was easier for the loan officer. And seriously, people need to stop listening to their friends, neighbors, family members, and some realtors that just don’t know any better. Lastly, just because you read about it online, doesn’t make it the truth.

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For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors

Speechless Sundays - The Twins turning 3 years old

2011-04-10T21:24:01Z

We had a few birthdays that were celebrated at my parents house in Medford,New Jersey.

Happy Birthday ... Happy Happy Birthday... what a day. For those that read some of my posts, I talk about my sister and her family. She has 6 kids, 3 boys and 3 girls. Well, the youngest two are twins and tomorrow they turn 3 years old. But we celebrated their birthday today.

As you can see, Ava had her own table with her own cake. We then had to go over to the other table and sing happy birthday to Joey... lol

Here is Joey at his own table... you will see two cakes on the table. My birthday is tax day, so we had a 3rd birthday to celebrate. Of course my cake is on the left, if looking at the picture. Not the Buzz cake... lol And I let the kids blow out my candles....

It was hard to get the kids pictures in the cars, with them driving all over the place. But before Joey sped off to his girlfriend's house, I was able to get a picture.

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Did you hear about a possible Government shutdown - Which could affect FHA loans & USDA loans

2011-04-07T13:09:25Z

Be prepared for the worse !!!!

Not sure if many of you know, but there is a possible government shutdown looming. This would affect FHA loans and possibly other mortgages. There are still talks on Capital Hill between the Democrats and the Republicans, if not solved, could shut down many parts of the government come Friday April 7th. The government funding bill expires on Friday at midnight.

Be aware this could affect the ability to get transcripts for IRS loans as well as more importantly, FHA case numbers. Not only could this delay the lender in obtaining a FHA case number, but FHA is increasing the annual mortgage insurance which goes into effect on April 18th, 2011. ~ FHA monthly mortgage insurance changes April 2011 ~

The ending result is that this could affect thousands of home buyers if this issue is not resolved. Especially because the usage of FHA loans have increased over the years. New mortgage numbers state that 35 percent of all mortgages are FHA loans. Many don’t realize that sometimes a buyer might need a few days before a specific deadline because the FHA case number could go into a “holds tracking” status. There are various reasons why this might happen., but the fact remaining, that file is placed on hold. So if a buyer is applying on April 17th and the result is a “holds tracking” status, and it takes 2 days for the case number to clear, that borrower would miss the deadline for the new change. This would result in a higher mortgage payment.

On another note, some of us are still trying to see if this will affect USDA loans also. From one source, I am told that it would shut down USDA loans, which means the USDA won't be able to underwrite the loans. I am waiting for some USDA officials to get back to me and I will update this post accordingly, unless someone knows otherwise.

Summary : Overall, this could affect so many other types of jobs. It still boggles my mind that the government is doing many things last minute. For a few years we had the national flood insurance issues that would come down to the last minute and so much more. People need to be aware of this, because this could affect thousands of home buyers and or delay closings, especially those applying for FHA loans.

On a side note, did you know that this would affect the military also? What about those military personnel with families in the United States who aren't working, depending on their spouses military checks. Again, why must we always wait until the last minute. Why can't we as a powerful nation, how some sort of emergency back up plan, for those that can't seem to agree on Capital Hill.

Here is an article by Kimberly Schwandt describing what jobs could be effected. ~ Administration paints picture of possible government shutdown ~

Key Reminder : Some lenders might take more risks than others, in what they will originate & close if the government shuts down.

MARK LAPP wrote this post today, 4/8/11 and gave some more details if the government shits down... what it will do to lending...

The affect of a Government shutdown

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For more information on FHA loans, please go to this link. The FHA Expert

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors

Is your home killing the mortgage approval process? How about Pre-Qualified homes

2011-04-03T10:47:26Z

We hear so much talk about buyers being pre-qualified or pre-approved, but what about pre-qualifying the house that is being sold.

I was inspired to write this post after reading a post and its comments that was written by Valerie Osterhoudt. ~ FHA guidelines are making it hard to keep deals together ~ She talks about a home that she is trying to sell and just came across another change to FHA loans because the buyer was qualified with a FHA loan. The key point in this conversation was that "everything was going smoothly until ...." Until the loan was being processed after the appraisal was done. Read the article that Valerie wrote in order to get more details. (ps - The issue mentioned in the article is also an issue for USDA loans - Just food for thought)

What I wanted to bring up is that some of these issues can be addressed prior to a buyer accepting an offer. Not everyone can remember every detail when it comes to what is allowed and not allowed, no matter what type of financing the buyer is obtaining. Let's take a look :

Get an Appraisal done when Listing a New Home

Why can this be such a great idea?

You could get a true expert that would know many of the lending guidelines when it comes to appraisals. If one would suggest an appraisal, I would make sure that appraiser is approved to do FHA appraisals also. And have this person view the home from all angles. Some of you might think about just hiring a home inspector. My advice would be to hire an appraiser.

The second idea would be to list the issues regarding the home being sold and not hide them from prospective buyers. Hey, I have heard many types of stories. My main point, if you know about it, make it known to everyone.

Lastly, get your loan officer involved with the issues. Have them run it by their underwriter. I would suggest all things that aren't ordinary within the surrounding area. Valerie's story is a perfect example, because it was well water. Another is that Erica Ramus just listed a property and asked me if this property would be okay for specific types of financing.

Wait, I know many will harp because it would be another cost to the seller when trying to sell their home. Maybe $375 to $500. How could a realtor explain this cost to the seller?

The listing agent can sell it as the cost of selling the home.

Split the cost with the seller when trying to win that listing or pay for yourself.

Have the buyer pay for the cost within the sales price.

Reminder : Throwing caution to the wind. Some of you will think or sell the idea that the appraisal could be used by the new buyer. I would not recommend this at all. To many new appraisal rules on how appraisal should be ordered and or the time period in which an appraisal is good.

Summary : The ending result, how about being pro active. Market yourself aas the problem solver prior to unexpected problems, and not just keeping the fingers crossed. If you get resistance from the seller, use Valerie's story as an example.

Times have changed. Be ahead of those changes before you find out the hard way. It's easy to criticize after the fact, asking why certain loans are tougher on certain issues. This is another reason why FHA loans sometimes get a bad name. But a few things to keep in mind. As I mentioned, Valerie's issue is also an issue on USDA loans. And do you truly know what is the better loan for that buyer? That a conventional loan could be more expensive than a FHA loan, even with decent credit scores?

Comparing FHA loans & conventional loans with 10% down - 699 credit score - FHA wins

FHA loans vs USDA loans - A true comparision

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- FHA Loans - USDA Loans - VA Loans -

- Energy Efficient Mortgages -

- Conventional Loans - 203 k loans -

- FHA Home Loans - Mortgages -

Experience & Knowledge at its BEST !!!

Follow me on:

______________________________________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors

Mortgage Knowledge at its BEST!!!! (Jeff Belonger)

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Be prepared for the worse !!!!

The affect of a Government shutdown

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Is your home killing the mortgage approval process? How about Pre-Qualified homes

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