One of my lenders keeps me informed..and thought I would share this with the buying public.

This is especially important for first time buyers with iffy credit.

Credit Reports: One May Not Be Enough

This summer, Fannie Mae instructed lenders that they should adopt a new policy that would include a second review of an applicant's credit report just prior to closing. Why? The answer is simple: the credit profile of a borrower may have changed between the time of the initial review of the credit report and the time of closing.

How will this impact the home loan?

The potential impact to a borrower who has utilized credit to make significant purchases after the initial credit report could include:

• A delay in closing
• Increase of closing costs and/or interest rate
• A decreased loan amount
• Denial of the loan

That's right, in the worst-case scenario, a change in credit could even result in a loan being denied - even after an original approval had been granted.

SO>>>as you can see....take some careful steps when buying a home.  Call me for more details.  Steve Frody   616.662.9664

I recieved this from a lender...and I am concerned for future FHA buyers.  This may raise their payment 100 bucks a month with PMI insurance.

MBA Applauds Senate Passage of Bills to Help Stabilize FHA Multifamily and Single Family Programs

 WASHINGTON, D.C. (August 5, 2010) -  The Mortgage Bankers Association (MBA) today lauded Senate passage of H.R. 5872, a bill to increase the Federal Housing Administration's (FHA) multifamily commitment authority, and H.R. 5981, which would allow FHA to increase its annual premiums for its single family program.  Both bills passed the Senate last night and will now go to the President for his signature.

 H.R. 5872, which passed the House of Representatives last week, increases FHA's commitment authority for its multifamily insurance programs by $5 billion for the remainder of the fiscal year. Without this increase, FHA would have exhausted its current authority sometime in mid-August and would have been forced to stop issuing any commitments to insure the loans in their current pipeline of applications until the next fiscal year, which begins October 1st.

 "FHA's multifamily programs have been a critical source of funding to build and renovate multifamily and rental housing during the recent credit crunch," said Robert E. Story, Jr., CMB, Chairman of MBA.  "MBA has been working tirelessly with officials at FHA and on Capitol Hill to help keep the program up and running and we are gratified that Congress acted before a shutdown became reality."         

 The other bill, HR 5891, will permit FHA to increase its annual premiums, raising the statutory cap from 0.55 percent to 1.55 percent. The legislation is nearly identical to one of the key provisions of the broader FHA Reform Act, which passed the House in June but has yet to be considered by the Senate.  The House had passed HR 5891 last Friday, July 30.

"While premium increases are never ideal, this bill was necessary to help improve the strength and stability of FHA's single family programs," commented Story.  "We are encouraged that FHA Commissioner Stevens has indicated he may not need to raise premiums to the maximum, and we believe that that a small increase in the annual premium, coupled with a decrease in FHA's upfront premium, will help stabilize FHA while lowering closing costs for many borrowers."

In October, MBA established an executive-level task force, including both single family and multifamily lenders, to help shape policy recommendations to ensure FHA can continue to fulfill its crucial mission in an evolving mortgage marketplace.  MBA's Council on the Future of FHA has spent the last six months looking at the critical issues facing FHA and Ginnie Mae, and will be releasing its recommendations in the near future. 

In the real estate world we live in...there is a big change taking place.  Today...The Grand Rapids board of real estate is merging with the Lakeshore Board.  This will be a great challenge for many agents...but we will be ready for this.  As this is our main tool in the business...we will plow thru and learn and seek greater things with the merger.  It will benefit agents and buyers. 

So...Bring one the Merger...See you on the other side.  Steve Frody

In my real estate career....I am often reminded I need to slow down and see what is happening around me.  I will at times...just take a simple 2 minute break and feed the fish outside my office door in the lake.  I get so hectic in our schedules and sometimes this just helps me stop for a moment and think about how good we really have it.... 

I just recently came back from Haiti...wow.  Its a great country that has really struggled.  We dont struggle here in Michigan.
I just spoke with my neighbor who recently lost his wife whom tragically passed on...>Man did this make me think..>His comment...GO home and hug your wife...

SO..i guess as I write this...I need to keep feeding the fish and count the blessings we do have.

Good night...going to hug my wife.

Today I ventured to the Lead base training...Wow was I surprised.  I think the market is in for an eye opener experience once they find out all the practices in fixing up homes.  From electricians, painters and window installers etc...all the trades you can think of...the market has changed for Lead paint working conditions.  My concern is with so many contractors not going thru the training...and who is policeing this??   Wow..its been an interesting 8 hour training session. 

Its been an interesting ride the last 90 days.  With the push for buyers trying to tie up their homes, we have really enjoyed the process.  Now the big push...(kinda like Christmas time) is over...now its back to the basics.   1.  Clean and organize my desk...DONE.  2.  Maintain client relationships.  3. Followup on leads. 4.  It goes on......5.  We are excited for the summer!!

One exception I did hear about for the tax credit is for our servicemen and women.  They can still qualify for the tax credit....Contact your accountant for more details.

This past week...I was blessed with the opportunity to meet many great people in the country of Haiti.
I was there for 8 days on a trip to help work with the community working with many great kids doing a VBS program, repairing a Latrine wall and roof that was collapsed and helped in a clinic.

Again, the community there has suffered great loss to this region of the world.  Please lets not forget them in still a troubled time of need.  1.3 millions people living in Tents/Tarps?  I am really concerned for the Hurricane season just a few short months away too.

We need to continue to Pray, give and go!  They need us and appreciate us!

Buyers get ready!!!  We only have 100 days from Jan 21 to have an accepted PA to qualify for the tax credit.   Also, we are expected to have an announcement from FHA this week.  FHA is going to raise the up front mortgage insurance premium from 1.75% to 2.25% and reduce the maximum seller paid costs from 6% to 3% (more money out of pocket and higher payments).    FHA is also going to introduce higher down payments for lower credit score buyers.    Lots of changes coming soon.  Why wait...lets go today.  Call us for more details.

Dont Delay....If you borrow 250k...now rather than later...you will be way ahead in the game.
Currently, interest rates are at all time lows and are projected to go up...

See the difference if you borrow 250k and see the payments below.
Also...below on the previous blog is same chart if you borrow 150K.

Call us.  616.662.9664