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This week mortgage rates have risen .25% – .375% in rate.  This is largely due to an improving economy.  If Wall Street is happy with the economy then rates rise.  Retail sales have grown and a majority of the retail sectors are showing signs of growth.

The sad part of this news is that rates have risen just before HARP 2.0 takes effect.  This program is going to allow underwater homeowners who have been making their payments the opportunity to refinance into a lower interest rate regardless of the appraised value.

If you are in the market to purchase, now is the time to buy. You will be able to afford a much larger house at a lower interest rate.  If you are planning on using HARP 2.0, you need to act now.  As mentioned in previous blog posts, higher demand means higher rates.  You need to get your paperwork in place so when HARP 2.0 is released, you will be ready..  Call for a free quote or complete an online preapproval at www.chuckwalden.com .

About the Author:  Chuck Walden (NMLS #148160) is a loan officer with Prospect Mortgage.  Email Chuck at chuck.walden@prospectmtg.com or call 678-725-8076. Website is www.ChuckWalden.com

Interest Rates

Interest Rates (Photo credit: 401K)

 

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Українська: 80/20 Принцип Парето.

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January 3, 2012.  The first “official” work day of the year.  Millions of people have proclaimed that this year is going to be the year.  This year, things are going to be different.  This year, I’m going to get in shape.  This year, I am going to make a difference.  What is it about this day that makes it so special?  Is it that people love fresh starts and new beginnings?  Why is it that January is the busiest month at every gym and then in February, it’s back to normal?

I think it’s because people love a challenge.  Then as the “newness” wears off, they go back to normal.  Here’s my challenge for you.  Everyone has heard of the 80-20 rule. If you haven’t, this is where 20% of the people create 80% of the business.  My challenge is to be part of the 20%.  Don’t be the person that just gets by.  Don’t be the person that is sooo busy that they can’t possibly take on any more business. Be a leader.  Bring home the income you need.  Don’t be lazy.  Challenge yourself.  Post your goals where you can see them every day.  Adjust them as needed and make a difference.

I am part of the 20%.  I will not be lazy. I will and I can be better at what I do.  Are you an 80 or are you a 20?

Merry Christmas

Posted: December 23, 2011 in Uncategorized
MERRY CHRISTMAS!

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Merry Christmas!!!

Mortgage debt

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I’ve discovered over the last twelve months, that potential buyers fall into one of two categories.  The first category is the “experienced” buyer.  This person, or couple, has purchased a home before and are either moving up to a larger house, downsizing due to retirement, or buying a second home or investment property.  Odds are, the last time they purchased a home, they provided their loan officer a bank statement and a pay stub and they were good to go.  Or, if their credit was good enough, they may not have had to show or prove their income at all.  The second category is the first time home buyer.  This person, or couple, has never purchased a home before and are ready due to a marriage, starting a family, or just plain tired of renting.  They have no clue what is going to be required other than what their friends and family have told them.

In case you’re wondering where this is going, let me explain.  Obtaining a mortgage is different.  Obtaining a mortgage requires hard work.  Obtaining a mortgage requires immediate responses when asked for more documentation.  Obtaining a mortgage is difficult.  Obtaining a mortgage is not what it used to be.

In order to make an offer on a home, whether you are a first time home buyer or a seasoned veteran, you need to arm yourself with a preapproval letter.  An experienced loan officer will ask for may things in order to give you a legitimate one.  Once your offer is accepted, the fun begins.  The best way I can explain this is that you and your loan officer are working as a team to put a puzzle together.  You both are trying to create a picture of your credit worthiness to an underwriter who has never seen you or spoken to you.  All the underwriter sees is the information placed in front of them. 

Items you may need are pay stubs, bank statements, tax returns, retirement account statements, a letter of explanation regarding why you would like to purchase the home, letters of explanation and proof of any large deposit that was not payroll related, divorce decrees, Human Resource department contact info, a letter explaining why you were late on a credit card payment three years ago, etc etc etc.  You have got to be organized and patient.  You must understand that the loan officer is working for you and not against you. 

This is the way it is and the way it will be for the foreseeable future.  Of course, every situation is different.  That’s why it is extremely important to contact a loan officer before you even begin looking for your new home.  He or she can guide you through the mine field one step at a time.

VA to Decrease Funding Fee

Posted: November 8, 2011 in Uncategorized
 
Arlington National Cemetery Graves (Burial Cri...

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In case you didn’t know, the US Department of Veteran’s Affairs (VA) is going to reduce the funding fee on VA loans from 2.15% to 1.4%.  This will greatly reduce the upfront costs to veterans considering using VA to purchase their next home.  If you are a veteran, active duty, reservist, or surviving spouse now is a great time to take advantage of the reduced costs.  We are an approved VA lender and have the necessary experience to guide you through the VA process.

Some advantages of using your VA entitlement are no down payment, no mortgage insurance, and the VA funding fee may be financed into the loan.  This is an awesome program for awesome people!

Happy Halloween

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Is now a scary time to sell your home? (Excuse the pun and Happy Halloween).  No it’s not and let me tell you why.  Now is the time that you will get the most face time with potential buyers.  I held 18 open houses during the month of October and the number of open house attendees has dramatically improved over this time last year.  Also, as you know, the number of potential buyers searching for homes online is increasing every day.  What if we were in an increasing interest rate environment?  Would fewer people qualify?  Would more people be looking to buy before rates get too high?  We are….yes….and YES.   Due to the daily changing environment of the mortgage world, now is the best time to sell.  With increasing interest rates, fewer people qualify and the ones that can afford it may get “scared” away with a much higher payment.

It’s almost impossible to time the market.  All you can do is deal with the facts.  Whether you are looking to buy or sell, I would say that now is the time.  There are too many market indicators pointing us in that direction.

For decades, grandparents have passed on the knowledge that the best investment you can make is homeownership.  You will have a fixed payment for 20 to 30 years.  At the end of that term, you can live without a house payment. If you need the money, sell your home and rent.

Even though the housing market started to crash in 2006, I believe that our grandparents were right.  Let me give you some examples.  Home prices have gained 42% since 2000.  The market has lost 4%.  According to Trulia, it is cheaper to purchase a new home in 72% of America’s cities than to rent.  In case you haven’t heard, interest rates are at all times lows.  With low rates and low values, you are getting more bang for your buck and keep dollarsin your pocket.  One thing is sure.  Rates and values will start to rise.

I wanted to talk about this today because I know a lot of people are on the fence and are trying to time the market.  Now is the time.  Don’t hesitate … make a decision.  Homeownership is an American dream that we shouldn’t take for granted.  But, just like our grandparents once told us, it is the best investment that you can make.