This lovely farmhouse has all the upgrades that you will ever need. This 3 bedroom, 3 full bath home is all ready to move into. Enjoy the peaceful country nights on the large deck, or enjoy a nice movie in the finished basement. The open concept kitchen and living room are perfect for entertaining.
New stucco outside completes the look. With 5 acres and 2 barns you have enough room for horses or your toys.
5 acre with barns, all ready for horses
Relax after work on the large deck
Historic brick barn
Large eat in kitchen
Living room with cathedral ceilings
Dining room with custom plaster finish
Lower level walkout family room
Main floor laundry
Master bath with shower
For a personal tour please call us at 262-719-7393
Man what a week (or three) in the real estate market.
To summarize:
Rates are up big (more on that later)
What's the deal with this tax credit??
Well as with anything the government gets involved in - confusion is sure to follow - as I have found in talking to some of you.
Everyone has heard that the $8000 tax credit can be used for the down payment.
Here are the facts as of now:
1. You can amend your return to claim the $8000 shortly after buying. Have your clients consult with a tax advisor to make sure this is the best move- you don't want to be thrown into a higher tax bracket as a result.
2. As the $8000 pertains to FHA loans as of now in the state of Wisconsin you cannot use this towards a down payment. See below:
In accordance with ML09-15, here's the deal so far:
Government entities and instrumentalities of government may provide a second mortgage. Currently, as far as we know, 10 state housing finance agencies offer a product buyers can use that will effectively monetize the tax credit for down payment purposes. These states are Colorado, Delaware, Idaho, Kentucky, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, and Tennessee.
Even if you could use as a down pay, the buyer still has to come up with the 3.5% of their own money. (per the same Mortgagee Letter) HUD is NOT going to budge on this because they have determined that buyers that put their own money down the default rate of those buyers declines.
3. The credit ends 12/1 period. There is no talk of extension. Buyers should not be told otherwise. Buyers should be encouraged to act quickly right now. There is plenty of inventory as you know.
Closing dates are going to fill very quickly in November which leaves only 5 months to find, finance and close on their home.
Rates - what the heck is going on and how does this effect buyers?
They have jumped .75-1.00% in the last 2 weeks!
Rates, are historically excellent, but it lowers buyers purchasing power by $5k to 10k or more.
The cause - Increased supply of bonds hitting the market as a result of all the refis that have taken place along with the Fed being unable to keep up with the buying of those bonds. Ironic isn't it.
This increased supply has lowered the price of bonds and driven up the yield. ie rate.
Where do we go from here:
I can't say for sure the worst is behind us. However economic reports due out in the coming weeks are likely to be dismal (which is generally good news for rates) and the Fed is going to be picking up the pace on buying bonds to diminsh the supply which would cause prices to rise and yields/rates to drop.
So if you have clients that are closing in the next 45-60 days and they have not locked a rate yet, I would wait and see what the next several weeks bring. Should the closing be less than that I would recommend locking early next week to avoid any potential increases.
In this market we cannot afford to lose a deal. I have heard many stories of lenders declining tranactions for a variety of reasons - low score, appraisals, lenders even counter offering to different programs the client does not want. It's tough out there and I want to let you know that Fairway and I have been saving those transactions and getting them closed! It may not close when it was originally scheduled but it WILL close and get you paid.
I had a client that was working with another lender and they could not lock a rate for 3 months - lender was too busy. They where referred to me and we locked right away before the rate increases and are closing in less than 30 days.
Call me with any questions and scenarios that are starting to look iffy.
When you fill out a credit appli- cation, we run a credit report for the underwriter. Each lender and each loan program has different guidelines they must follow. You should not do anything that will have an adverse affect on your credit score while your loan is in process. We know it's tempting...If you're moving into a new home, you might be thinking about purchasing new appliances or furniture, but this is really not the right time to go shopping with your credit cards. You'll want to remain in a stable position until the loan closes and give us the opportunity to help you lock in the best interest rate we can possibly get for you.
Here is a handy list of do's and don'ts that you should adhere to after your loan application has been submitted to the lender.*
DON'T APPLY FOR NEW CREDIT OF ANY KIND - If you receive invitations to apply for new lines of credit, don't respond. If you do, that company will pull your credit report and this will have an adverse effect on your credit score. Likewise, don't establish new lines of credit for furniture, appliances, computers, etc.
DON'T PAY OFF COLLECTIONS OR CHARGE-OFFS - Once your loan application has been submitted, don't pay off collections unless the lender specifically asks you to in order to secure the loan. Generally, paying off old collections causes a drop in the credit score. The lender is only looking at the last two years of activity.
DON'T CLOSE CREDIT CARD ACCOUNTS - If you close a credit card account, it can affect your ratio of debt to available credit which has a 30% impact on your credit score. If you really want to close an account, do it after you close your mortgage loan.
DON'T MAX OUT OR OVER CHARGE EXISTING CREDIT CARDS - Running up your credit cards is the fastest way to bring your score down, and it could drop up to 100 points overnight. Once you are engaged in the loan process, try to keep your credit cards below 30% of the available credit limit.
DON'T CONSOLIDATE DEBT TO ONE OR TWO CARDS - Once again, we don't want you to change your ratio of debt to available credit. Likewise, you want to keep beneficial credit history on the books.
DON'T RAISE RED FLAGS TO THE UNDERWRITER - Don't co-sign on another person's loan, or change your name and address. The less activity that occurs while your loan is in process, the better it is for you.
DO JOIN A CREDIT WATCH PROGRAM - Your bank, credit union or credit card company may be able to provide you with a free credit watch program that can alert you to any changes in your credit report. This can be a safeguard to help you intervene before the underwriter sees a problem.
DO STAY CURRENT ON EXISTING ACCOUNTS - Late payments on your existing mortgage, car payment, or anything else that can be reported to a CRA can cost you dearly. One 30-day late payment can cost anywhere from 30 to 75 points on your credit score.
DO CONTINUE TO USE YOUR CREDIT AS YOU NORMALLY WOULD - Red flags are easily raised within the scoring system. If it appears you are diverting from your normal spending patterns, it could cause your score to go down. For example, if you've had a monthly service for Internet access billed to the same credit card for the past three years, there's really no reason to drop it now. Again, make your changes after the loan funds.
DO CALL YOUR LOAN CONSULTANT - If you receive notification from a collection agency or creditor that could potentially have an adverse affect on your credit score, call us so we can try to direct you to the right resources and prevent any derogatory reporting to credit bureaus.
* SOURCE: Based on The Top 10 Credit Do's and Don'ts During the Loan Process, provided by Credit Resource Corp.http://www.creditresourcecorp.com
For more information on your credit call or email
Jason Schiller Waukesha State Bank 262-244-0303 (Business) 414-659-6347 (Mobile) jschiller@waukeshabank.com
Unfortunately, a person with a bad credit score is often in this position because he or she lacks the discipline to pay bills on time. Of course, there are exceptions where unforeseen circumstances come into play, such as health complications, or loss of employment. There are a few things that may be able to bring your score up so that you can secure a better interest rate on your mortgage loan.
Example 1: Distribute debt from revolving credit.
Our borrower, Mr. Jones, has a credit score of 664. He has five credit cards, but his Visa account is almost maxed out. His other four credit cards have relatively low balances. Mr. Jones moves the part of the debt from the Visa account to the other major credit card accounts, thus distributing the debt more evenly over the five cards. This changes the ratio of debt to available credit (which has a 30% impact on the overall credit score), and Mr. Jones successfully raises his credit score by 20 points with very little effort.
Example 2: Transfer outstanding balances to new accounts.
Our borrower, Mr. Smith, has only two credit cards, but both are pushing the limit of available credit. Mr. Smith opens two new credit card accounts, each with a credit limit of $5,000. He transfers part of his existing balances to the new accounts. While he has acquired two new cards that have no established history, the greater impact is the change in the ratio of debt to available credit.
Ultimately, experts say that it is best to have two to five credit cards, and no more than that. You should keep your balances as low as possible. If you have a credit account with a zero balance, do not close the account.
Instead, make a small purchase so the card shows up as an active account on your credit report, and you will be awarded points for your long-term credit history.
These are just a few tips to consider as you seek to obtain mortgage financing. But you should always know that as your loan originator, my job is just beginning when you close your loan with me.
As soon as you begin to make mortgage payments on time and in full, your credit standing will begin to improve. My team and I will continue to monitor rates on your behalf and alert you to the opportunity to refinance into a loan program with a lower interest rate as soon as possible. Our long-term goal is to help you build a strong financial future.
For more information on your credit call or email
Jason Schiller Waukesha State Bank 262-244-0303 (Business) 414-659-6347 (Mobile) jschiller@waukeshabank.com
The Delafield Block Party is slated for Friday and Saturday, June 19-20. This community celebration, sponsored by the Delafield Area Chamber of Commerce, promises two days of family fun and festivities.
Festivities begin at 5 p.m. Friday with Delafield Chamber member restaurants providing a specialty food court on Milwaukee Street, beer tents (including a new specialty beer tent - the HofBräuhaus), and Main Stage entertainment, including the Brandon James Band from 5 to 7:30 p.m. and Chasin' Mason from 7 to 11:45 p.m. The Main Stage is in the city parking lot on the corner of Main and Dopkins. Additional live music will fill the Family Stage at 5:30 p.m. as festivalgoers enjoy dinner.
On Saturday, after the Farmers Market from 7 a.m. to 1 p.m. at the city parking lot there will be free tours of Hawks Inn from 1 to 4 p.m.
From noon to 4:30 p.m. Saturday on the Family Stage are a variety of family and community activities, including a rock-climbing wall, performances by dancers from To The Pointe and Fred Astaire studios and an interactive magic show by Glen Gerard.
The Delafield 5K Run/Walk and Kids' Fun Run will kick off at 3 p.m. at Highway C and Dopkins Street. Rain or shine, the twilight 5K race begins at 5 p.m.
Saturday evening entertainment includes Crazy Man's Basement from 5:30 to 8:30on the Family Stage and The Pink Flamingoes from 4 to 7 p.m. on the Main Stage, followed by the Love Monkeys playing for the street dance from 8 to midnight.
For more information, call the Delafield Chamber of Commerce at (262) 646-8100 or visit delafield.org.
If you are in the process of reviewing your credit reports, the first thing to do is make sure that the information contained within the reports is correct. In June 2004, The U.S. Public Interest Research Group published the results of a survey it conducted involving 200 adults in 30 states to test the validity of credit reporting. Their findings were as follows.
Twenty-five percent (25%) of the credit reports contained errors serious enough to result in the denial of credit;
Seventy-nine percent (79%) of the credit reports contained mistakes of some kind;
Fifty-four percent (54%) of the credit reports contained personal demographic information that was misspelled, long-outdated, belonged to a stranger, or was otherwise incorrect;
Thirty percent (30%) of the credit reports contained credit accounts that had been closed by the consumer but incorrectly remained listed as open.
SOURCE: U.S. Public Interest Group Research; One In Four Credit Reports Contains Errors Serious Enough To Wreak Havoc For Consumers, US PIRG Press release, 06/17/04http://uspirg.org/uspirgnewsroom.asp?id2=13650om
If you find that you have errors on your credit report, follow this procedure to correct those errors.
1. Make a copy of the report and circle the items you are questioning. Keep your original copy for your own records.
2. Prepare a letter to the CRA that provided you with the report in question, and request to have the erroneous item(s) removed. If you have proof of payment for an item in question, include a copy of that documentation.
3. Prepare a letter to the creditor reporting the problem, especially if you feel you are a victim of fraud or identity theft. Inform the creditor that you are disputing an error reported to the CRA, state why the claim is inaccurate, and include any relevant documentation to prove your point.
4. Send your correspondence via certified mail.
You should receive a response from the CRA within 30 to 45 days. If the error has been corrected, they will send you a fresh copy of your credit report at no charge to show you that the item has been removed. They will also send a corrected report to any entity that received a report that contained errors within the last six months. If you cannot have a disputed item removed, you have the right to include your side of the story on the credit report. Your statement should be a concise explanation (100 words or less) as to why you are challenging the item in question. From that point on, this notation will be included in your credit report as long as the item in question remains on your report.
Credit Remediation
If you feel you would prefer to work with a credit repair service rather than try to tackle credit repair issues on your own, please give us a call so we can help you sort through your options. We will do our best to refer you to a reputable credit remediation service and guide you in the right direction once we have the opportunity to review your credit report with you.
The Federal Trade Commission (FTC) regulates credit repair services and provides free information to help consumers spot, stop and avoid doing business with credit repair companies that are not reputable. Their web site is located at http://www.ftc.gov/
You can also write to the FTC to request a copy of their free brochure titled Credit Repair: Self Help May Be Best, which includes information about credit clinics. The address to write to is:
If you have any complaints regarding your credit report or credit remediation services that you wish to report to the FTC, contact them at:
Federal Trade Commission Sixth and Pennsylvania Avenues NW Washington, DC 20004
Federal Trade Commission Consumer Response Center, Room 130 600 Pennsylvania Avenue NW Washington, DC 20580
For more information on your credit call or email
Jason Schiller Waukesha State Bank 262-244-0303 (Business) 414-659-6347 (Mobile) jschiller@waukeshabank.com
How Does a Low Credit Score Affect My Interest Rate?
Lenders estimate your ability to pay back money based on your credit score. The risk factor they take on is built-in to your interest rate as a financing fee. Therefore, a low credit score results in a higher interest rate, higher monthly fees, and a higher amount of interest being paid over the total life of the loan.
Referring back to our chart, a borrower with a credit score of 620 would be questionable to an underwriter. While the lender may agree to provide financing, the increased interest rate is factored into the monthly payment. The following chart illustrates the difference in the amount of interest paid over the life of the same loan with three different credit score scenarios.
A borrower who increases his or her credit score from 620 to 720+ can potentially save $601 per month on mortgage payments, $7,214 per year, and approximately $216,432 over the life of the 30-year loan.
30-Year Fixed Rate with a Principal Loan Amount of $250,000
FICO SCORE
APR
MONTHLY PAYMENT
INTEREST PAID
Above 720
5.71%
$1,453
$272,928
620 to 719
5.796% to7.84%
$1,466 to $1,807
$277,845 to$400,381
Below 620
8.452% to 9.234%
$1,914 to $2,054
$438,957 to $489,365
SOURCE: Credit Resource Corp., How Much Does a Low Score Cost You? http://www.creditresourcecorp.com
How Does the Underwriter View My Score?
If you are considering a home purchase, it is in your best interest to make every effort to increase your credit score, especially if you know you have issues you should be dealing with. It is often the case that people are not aware of badmarks on their credit record until they apply for financing for a major purchase, such as a home.
As part of the loan process, we run a credit report for you. But you can take advantage of the opportunity to get a free credit report from each of the three main CRAs: Equifax, Experian and TransUnion. As a sidebar, you can choose to get the free report from all three bureaus at the same time, so you are aware of what information each bureau has collected. Another option is to pull your credit report from one agency, and reserve the right to get your free reports from the other two CRAs as you work on improving your credit standing.
We believe it is best to have the full overview up front. Different CRAs have different methods of calculating these scores, and may also have different information contained within their findings. Consider the adage, "Why jump over nickels to pick up pennies?" If additional reports are needed within a 12-month period from any of the three CRAs, the cost is extremely minimal compared to the potential savings that can be realized by an improved credit score, and if you run a credit report on yourself it will not affect your own score as an inquiry.
The underwriter who is making the decision as to whether or not you should get the loan you are asking for will generally look at the scores generated from all three CRAs. Typically, the score will not be the same from all three reports, and the underwriter will consider the middle score as a barometer.
For more information on your credit call or email
Jason Schiller Waukesha State Bank 262-244-0303 (Business) 414-659-6347 (Mobile) jschiller@waukeshabank.com
In the next few posts We will be addressing the following topics. Disputing Errors On the Credit Report The History of Credit Scoring How Does the Underwriter View My Score? Dealing with Credit Challenges Do's and Don'ts During the Loan Process Credit Remediation
The credit scoring model seeks to quantify the likelihood of a consumer to pay off debt without being more than 90 days late at any time in the future. Credit scores can range between a low score of 350 and a high score of 850. The higher the score, the better it is for the consumer, because a high credit score translates into a low interest rate. This can save literally thousands of dollars in financing fees over the life of the loan.
Only one out of 1,300 people in the United States have a credit score above 800. These are people with a stellar credit rating that get the best interest rates. On the other hand, one out of every eight prospective home buyers is faced with the possibility that they may not qualify for the home loan they want because they have a score falling between 500 and 600.
The following chart illustrates how an underwriter interprets the credit score in terms of risk, and how the interest rate is affected as a result. Mortgage lenders consider a score of 700 or above to be very good.
The Five Factors of Credit Scoring
Credit scores are comprised of five factors. Points are awarded for each component, and a high score is most favorable. The factors are listed below in order of importance.
1. PAYMENT HISTORY - 35% IMPACT
Paying debt on time and in full has the greatest positive impact on your credit score. Late payments, judgments and charge-offs all have a negative impact. Missing a high payment will have a more severe impact than missing a low payment, and delinquencies that have occurred in the last two years carry more weight than older items.
2. OUTSTANDING CREDIT BALANCES -
30% IMPACT
This factor marks the ratio between the outstanding balance and available credit. Ideally, the consumer should make an effort to keep balances as close to zero as possible, and definitely below 30% of the available credit limit when trying to purchase a home.
3. CREDIT HISTORY - 15% IMPACT
This portion of the credit score indicates the length of time since a particular credit line was established. A seasoned borrower will always be stronger in this area.
4. TYPE OF CREDIT - 10% IMPACT
A mix of auto loans, credit cards and mortgages is more positive than a concentration of debt from credit cards only.
5. INQUIRIES - 10% IMPACT
This percentage of the credit score quantifies the number of inquiries made on a consumer's credit within a six-month period. Each hard inquiry can cost from two to 25 points on a credit score, but the maximum number of inquiries that will reduce the score is ten. In other words, 11 or more inquiries within a six-month period will have no further impact on the borrower's credit score. Note that if you run a credit report on yourself, it will have no affect on your score.
Remember that the credit score is a computerized calculation. Personal factors are not taken into consideration when a credit report is generated. It is merely a snapshot of today's credit profile for any given borrower, and it can fluctuate dramatically within the course of a week.
For more information on your credit call or email
Jason Schiller Waukesha State Bank 262-244-0303 (Business) 414-659-6347 (Mobile) jschiller@waukeshabank.com
In my next few posts I will be addressing the following topics.
How Does a Low Credit Score Affect My Interest Rate? Disputing Errors On the Credit Report The History of Credit Scoring How Does the Underwriter View My Score? Dealing with Credit Challenges Do's and Don'ts During the Loan Process Credit Remediation
The subject of credit scoring has become an increasingly hot topic, and for good reason. For many years, the general public only associated the concept of credit scoring with the need to purchase high-ticket items such as a new car or a home. Today, credit scoring goes much further. Your credit score can affect your ability to get a good rate on commodities such as car insurance, cell phones, or even
determine whether or not you get the job that you want. Indeed, the financial snapshot provided by the credit score has also become a gauge for many employers, especially those who seek to place employees in a position of financial responsibility.
The credit score system used today has evolved since the
1960s. It was originally designed to provide lenders with financial profiles on consumers who wished to borrow money. The lenders' biggest concern was whether or not an individual had the ability to repay a loan, and establish what percentage of risk might be involved.
Congress passed the Fair Credit Reporting Act in 1971 to establish guidelines for fair practices in regard to the use of credit scoring. This law was designed to promote accuracy in reporting and protect the privacy of consumers. In light of the increased use of credit scoring and a growing fear of identity theft, recent legislation has been passed to further protect Americans and improve consumer awareness.
The Fair and Accurate Credit Transactions Act of 2003 (sometimes referred to as The FACT ACT or FACTA) was signed by President George W. Bush on December 4, 2003. This amends the Fair Credit Reporting Act, and provides each American the ability to obtain one free credit report every 12 months from each of the three main credit reporting agencies (CRAs); Equifax, Experian and TransUnion. Those bureaus have created a central web site, http://www.annualcreditreport.com/ to accommodate Americans who wish to obtain copies of their credit report. Phase in of access to free credit reports from West Coast to East Coast nationwide will be complete as of September 1, 2005. See http://www.annualcreditreport.com/m for a zoning map.
For more information on your credit call or email
Jason Schiller Waukesha State Bank 262-244-0303 (Business) 414-659-6347 (Mobile) jschiller@waukeshabank.com
In my next few posts I will be addressing the following topics.
Many of you ask us "What is going on in my local housing market?" We will continue to update this on a monthly basis so bookmark this page and visit often...
Below you will find sales data for Waukesha, Jefferson and Dane Counties. These sales are single family homes only. If you would like to see postings on Condos, land or any other county let us know. Compare 2008 vs 2009 notice the Days On Market as well as the average sale price difference. This is a good time to buy your first home or move up in size. If you are curious on the value of your home visit www.YourLocalHomeValue.com
Up to date information on Wisconsin Real Estate. Search for information about Personal Listings of Your Local Home Team and all other homes for sale in Johnson Creek, Jefferson, Fort Atkinson, Cambridge, Lake Mills, Watertown, Oconomowoc, Delafield, Waukesha, Brookfield, Pewaukee and Hartland on our site. Also, we offer information about all southern Wisconsin cities and all Wisconsin schools. We will be adding posts from mortgage and insurance professionals as well as financial advisors on the benefits of home ownership.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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