Finally.  More and more home  buyers are discovering the benefits of homeownership using a Rehab or Renovation Loan.  Why buy a home that isn’t exactly what you want?  You shouldn’t. Why settle for an outdated kitchen?  You shouldn’t.  If you’re an investor, why use your own funds to repair the problems with the property you are buying?  You shouldn’t.   What if you could replace all of the kitchen appliances, paint the interior, and replace the carpet in your mortgage?  You can. 

There are several types of renovation loans that work with most home purchases.  They all have the same benefit to the buyer.  Finance in repairs, remodeling, and renovation into one loan.  The main three types of renovation loans are 203K, HomePath Renovation, and Homestyle.  They are each different but the end result is the same.  A happy homeowner with a house they are proud to call home.

Another added benefit is that the new home will appraise for more than the purchase price.  This increases home values in neighborhoods which I know all of us appreciate.

If you are an agent or buyer and interested in an easy cheat sheet, email or call me anytime and I’ll send it to you.  This program benefits the homebuyer, the agent, and the community.  A win win for everyone involved.

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

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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)

 

What do real estate agents want and expect from their loan officer? Great question!  I would love some feedback on this because I have heard them all.  I recently dealt with an agent that said not to call, email, text, or send carrier pigeon. Close on time and I’ll see you at closing.  Then there’s another agent that wants an email every morning by 10:00 stating the status of the loan.

My thoughts are simple. What if you were provided a weekly update?  What if you were notified any time something happened?  For instance, the appraisal is in, the title is in, or the file is out of underwriting.  I realize that all agents are different, just like all loan officers

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are different and I don’t have a problem with that.  I believe the agent should be kept up to speed as we move through the process.  I believe that an agent should never have to “wonder” what is going on with the loan.  I believe that if there is a problem the agent should know ASAP.

I know that some agents need more information and some need less.  I would suggest that the first time you speak with your loan officer, you tell them what you expect.  Then if they don’t live up to that, move on until you find one that meets and exceeds your expectations.  Find one that doesn’t like drama.  Find one that loves to communicate.  Find one that is willing to tell you NO when he or she knows a deal will not work.  Find one that you know has your back.  Find one that returns your calls immediately.

I would love to hear your thoughts.

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

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Currently, FHA allows the seller to pay up to 6% in closing costs.  Yes, I have at least one conversation per day saying it is only 3%.  Guess what, it’s 6%, but that is getting ready to change.  FHA has proposed to lower it from 6% to 3% and is currently accepting public comment regarding this change.  What does this mean to you?  If a buyer has very little cash in the bank, this change may kill a few deals and it will definitely force homebuyers to save their money before applying for a mortgage.  The reason behind this change is FHA is cutting back on their risk.  The more money the borrower has in the deal, the more committed they will be.  As more information comes available, I will let you know.  If you are considering making an offer, now is the time to get approved and get the process started.

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.  Bonus: Click to get a free, no obligation preapproval. I love to work with my readers!

 

Beginning April 1, 2012, any buyer using FHA financing will be subject to higher mortgage insurance premiums. This will include first time buyers, repeat buyers, and anyone using the FHA Streamline Refinance program.  Click Here to get preapproved before the increase occurs.

FHA loans are very attractive to potential buyers looking to put very little money down.  Also, if the buyer has some credit issues, FHA is much more lenient.  FHA loans have two parts to the mortgage insurance premium.  First, there is an upfront mortgage insurance premium(UFMIP).  Currently, that is 1% of the loan size and will be increasing to 1.75% of your loan size.  This UFMIP is added into your loan so it is not actual cash brought to closing.  However, you will be paying interest on that money for the next 30 years.  The monthly mortgage insurance premium increase will not be as drastic and will be going from 1.15% to 1.25% for any 30 year term when a buyer chooses to put down 3.5%.

FHA will make the announcement very soon regarding the changes.  If you plan on using FHA for your next home purchase, please click here 

My Mortgage Docs to be Reviewed by an ExpertAbout 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.  Bonus: Click to get a free, no obligation preapproval. I love to work with my readers!

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It has been said that buying a home is the most stressful event in your life. I’m sure it ranks somewhere up there with death and taxes.  Guess what?  It doesn’t have to be stressful at all.  What you need to realize is that if you approach this event as a team, with your loan officer and realtor, and understand you have to fight and fight together, you will be successful and you will not be stressed out.

I deal with all sorts of people from the first time home buyer to the seasoned investor to the self-made millionaire.  Everyone that works with me is told that we are in a fight and we have to work together.  It is not an option.  If the underwriter wants one more paystub, she will have it immediately.  If she wants a letter of explanation regarding a deposit, she will have it immediately.  If she wants to know anything, she will have it immediately.  You must work together.  Mortgages are not the same as they used to be.  Before we are done, I will know everything about you but your blood type.  But, we will get it done and we will get it done together.

The bottom line is this. Prepare to fight.  Prepare to work hard.  Prepare for your new home.  Your loan officer and realtor want nothing more than to make sure you are happy and that you get that new home.  Work hard for them because they work hard for you.

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.  Bonus: Click to get a free, no obligation preapproval. I love to work with my readers!

 

 

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A month or so ago, I discussed the upcoming release of HARP 2.0.  HARP 1.0 is a mortgage program which allows homeowners to refinance up to 125% of their home’s value.  Of course, some lenders do put their own restrictions on the Loan to Value (LTV).  HARP 2.0 is “supposed” to remove the LTV cap for underwater homeowners and provide them with the much needed benefit of a refinance at a lower rate.

Even though this program was released last year, the official launch should be in mid March 2012.  Fannie Mae and Freddie Mac have been updating their systems in order to accomplish the approvals of this new program.

Call to action:  DO NOT wait until mid March to start thinking about doing this.  Go ahead and get your loan officer on the phone and get the process started now.  I’m sure you can imagine the massive influx of new refinance applications that will pour in once this has been released.  Your loan officer will give you a list of items needed in order to process and underwrite your new loan.  Make sure you’re at the top of the stack not the bottom.

To apply immediately, you can call me at 678-725-8076 or go to my website www.ChuckWalden.com and apply there.

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.  Bonus: Click to get a free, no obligation preapproval. I love to work with my readers!