Minneapolis, MN: One of the biggest reasons people don’t buy a home is the lack of down payment money.
We get it. Saving is hard. Tax refunds therefore are popular tools for first time home buyers.
Big refunds or small refunds may be just enough to get you into your own home this year. Don’t assume you won’t have enough even with your refund. Down payment requirements may be smaller than you think, and down payment assistance is also available to those who qualify.
Everyone knows it is smart to get lender Pre-Approved before starting to look for a home, yet many people are actively looking at homes thinking they are Pre-Approved, when in reality, they are only Pre-Qualified.
Pre-Approved or Pre-Qualified? So what is the difference?
As a Loan Officer for over 20-years, I can tell you story after story of people who thought they were Pre-Approved, signed a purchase agreement, gave notice on their apartment, only to be told a week before closing that they were denied. The vast majority of these people, calling me to see if I can magically help them had two big items in common:
They applied at a bank or credit union
They NEVER supplied the lender with all (or even any) basic supporting documents up front.
Simply put, if you didn’t supply current pay stubs, bank statements, W2’s, and Tax returns, YOU ARE NOT PRE-APPROVED – No matter what they tell you!
First Time Home buyer? Down payment and closing cost assistance is available in Minnesota
Lack of down payment money is the biggest problem for most people wanting to buy a house. Mortgages Unlimited has an amazing program to help most modest income families achieve the dream.
1) Be a first time home buyer (or not owned a home in the past three years)
2) Have a 640 or higher credit score
3) For a family of one or two, make less than $82,900 a year in the metro area
For a family of three or more, make less than $95,335 a year in the metro area
4) Buy a home under $310,000 in the metro area
5) Put “at least” $1,000 of your own money into the transaction.
Of course you still have to meet basic conventional, FHA, or VA loan guidelines.
Loans available for up to 5% of purchase price for down payment and closing costs.
Story from KARE TV in Minneapolis / St Paul, MN. Story touches on it lightly, but misses the major issue that new mortgage lender / appraiser rules put into place in 2009, known as HVCC (Home Value Code of Conduct), now simply known as the Appraiser Independence rules, are the real problem. Appraisers are the holders of the countries equity, and the new rules have caused trillions of dollars in lost equity.
St Paul, MN: The much anticipated revised HARP Refinance Program (HARP 2) is now in effect, making it much easier for underwater home owner to refinance their mortgage into today’s low mortgage rates.
The two biggest guideline changes to the HARP 2 program include the POSSIBILITY of unlimited Loan-to-Value and the POSSIBILITY to refinance even if you have Private Mortgage Insurance (PMI). This opens up financing opportunities for seriously upside home owners who have kept up with their current mortgage obligations.
There is a LOT of misinformation out there... The reality is NO LENDER ANYWHERE can promise you a HARP 2 refinance approval WITHOUT having a full application and submitting that application through either Fannie Mae or Freddie Macs automated underwriting computers (AUS).
All home mortgage interest rates are about to go up due to new hidden tax congress buried into all new mortgage loans.
As part of the deal to extend a temporary reduction in payroll taxes, Congress last month approved a permanent increase in the fees borrowers pay on mortgages backed by Fannie Mae, Freddie Mac and the FHA.
The increase is an annual charge of at least 10 basis points – equal to one-tenth of one percent of the loan amount. That’s equal to an additional $300 a year on a $300,000 mortgage, or an additional $25 a month. The increase is proportional, so a borrower with a $150,000 mortgage would pay another $150 a year, one with a $400,000 loan would pay an additional $400, etc. LOCK NOW
Watch the video from Frank and Brian to learn more, and be sure to COMPLAIN to Washington. Of course this is also a great time to mention the importance of who you select to be President… DO YOUR HOMEWORK!
Shopping for a mortgage loan? DON’T worry about inquiries on your credit report
We’ve all heard it before. Having someone pull your credit will reduce your credit score. Sadly, many people end up making some poor decisions based on half truths, and bad information.
The fear of reduced credit scores with the occasional pull from a creditor is the most annoying, misleading, and misunderstood thing I hear every week in the mortgage business. If you are worried about “inquiries on your report”, this isn’t the concern most people think it is.
What to know about mortgage rate shopping. Looking for a mortgage, auto or student loan may cause multiple lenders to request your credit report, even though you are only looking for one loan. To compensate for this, the score ignores mortgage, auto, and student loan inquiries made in the 30 days prior to scoring. So, if you find a loan within 30 days, the inquiries won’t affect your score while you’re rate shopping. In addition, the score looks on your credit report for mortgage, auto, and student loan inquiries older than 30 days. If it finds some, it counts those inquiries that fall in a typical shopping period as just one inquiry when determining your score. For FICO scores calculated from older versions of the scoring formula, this shopping period was any 14 day span. For FICO scores calculated from the newest versions of the scoring formula, this shopping period is any 45 day span.
Furthermore, inquiries, even under the worst of situations, could only account for 10% of your overall score. Most people should have absolutely NO CONCERN whatsoever about inquiries on your credit report unless you have applied with 10, 15, or even 20 lenders in the past 90-days.
Visit MyFico.com to find out the truth about inquiries and your credit score, and STOP WORRYING!