Real Estate Financing...

Let's first define "First-Time Homebuyer".  Actually, let's define what the heck I'm addressing in the first place.  It's the First-Time Homebuyer Tax Credit.  I trust you've at least heard about it and if not... no biggie... I will give you some of the talking points and the direct address to the site momentarily.

The whole concept of "First-Time Homebuyer" can be a tad misleading for some of you.  You are considered a first-time homebuyer (under this tax credit) if you have not owned another home at any point in time during the three years prior to the date of purchase. 

So what is this Tax Credit all about?

• It acts like an interest free loan because it must be repaid over a 15-year time frame.  If you die, don't worry about it as long as you filed your taxes individually.  If you filed a joint return, it's up to wifey or hubby to pay this interest free loan.  Death, like life & love, can cost money:)
• This only applies to primary residences in the United States of America.  Sorry, the vacation house in Greenwich, Connecticut doesn't qualify.  As far as that Villa in Italy, count that out as well.  Feel free to drop me a bottle of Chianti in the mail, though.  It's got to be your home... the very roof over your head.  On a personal note, I do believe we'd be better off if when buying a home... we'd consider it more than an "investment".  It's where you live folks!  Investments, for most of us, happen over time.  I ain't (love that word) no day trader or speculator.  And I never will be. 
• What's the time frame?  You buy the home after April 8th, 2008 and before July 1st, 2009.  Let's face it, we have low interest rates and a large inventory and considering it is a buyers market in a lot of areas... it may be a damn good time to go ahead and buy that home.  Historians may look back to this period of time and wonder what the fuss was with not wanting to committ, waiting for a more opportune time.  There may be NO more opportune time than now.  Of note, the preceding is a sales pitch delivered by folks to increase business and consumer confidence.   The same can be written about all the bad news flying around.  Don't think that news organizations aren't rolling in dollars about how much "bad news" is being reported.
• How much is the credit?  Quite simply, 10% of the purchase of the home, a maximum available credit of $7500.00 worth of dead presidents.
• How will the IRS know if someone sells their residence before the 15 years are up?  I gotta laugh at this question, though it isn't a stupid one.  In my mind, the only stupid question is one not asked.  To answer this, the website says the following: "Through both self reporting and third-party information."  Right, how ripe.  Without imposing political beliefs upon the masses, they will know.  While I believe in conspiracies, this isn't one in my book.  This is intelligence, the right kind.  I know folks who blatantly took advantage of the system, good for you.  Just don't bitch because we are all in a bundle.  YOU were just as responsible...
• It's repaid, but how?  After the second year of claiming the credit, you must repay that interest free loan.  From what I've read, you will be repaying as an additional tax on your returns for the next 15 years.... $500.00 a pop.

One more thing, before I present the second thing which will end up "lastly".  Real Estate Investors have been stifled because of all these happenings in the Mortgage World.  Personally, I think that is a mistake.  They say you can only own so many properties and your credit score has to be this and your mother has to a direct decendent of Henry the freaking 8th?   Some folks invest in Real Estate for a living, don't ignore them.  Keep that in mind PMI Companies and Credit Scoring Agencies, because I bet ya that you won't be running this industry much longer.

Lastly, and my English Teacher hated starting a sentence like that which is one of the reasons I just did... it's a buyer's market.  That doesn't mean it is right for you, yet it is most certainly something to explore.  In a few years, if you didn't pounce on this, you may just be making someone else a lot of money... who owns your home. 

Direct website @ http://www.irs.gov/newsroom/article/0,,id=186831,00.html

Have some fun @ http://www.youtube.com/watch?v=tfBoMV-HIP4

 

Sardi

 

January 1930 - There are two great dangers to the continuance of prosperity.  The first is the false idea that business is still governed by a cycle of boom and depression, and the second is that the leaders of business will think that the country is broke because some of their friends are.  And also there is the danger that many executives who have been playing the market instead of working will not know how to get back to real work.

       Samuel Crowther, The World's Work

The following news is old, a bit antique in the "live feed" internet world we live in.  Yet, it's vital for the loan du jour these days in a very different lending atmosphere. 

I've had two concerns with FHA Loans and those have been documented in writing.  Here they are:

      *Picking up so much funding slack (my guess is at record levels) because of conventional Pricing changes and the disappearance of the sub-prime market.  Mistake folks, big mistake.  I give you the "All Eggs..." analogy.

      *Subprime folks who penetrated the FHA product early on.  FHA is NOT subprime and certainly not a viable substitute. 

And to the news...

*  If it is a cash-out refinance over 85% of your home's worth, two appraisals need to be done.  I've seen (in my area) appraisals being done for anywhere from $375.00 to $400.00.  The positive spin on this is that your equity position probably won't be over-inflated.  The reality is that you are going to have to pay for two appraisals.  Make sure you have the cash-flow to do it.

*  Property Condition Issues - Peeling paint is a No-No.  GFCI outlets (those things that you plug stuff into) must be upgraded if they already aren't.  They must have a reset button, which is usually red. (This applies to kitchens and bathrooms or anywhere there is running water)...

*  The down payment has risen to 3.5% since the New Year.

*  620 may be the magic credit score.  Don't count on civilian credit checks to see what you may qualify for.   Of note, scores can be lower than 620... just make sure that right now... you know that credit scores mean a damn along the merry little way and may even mean more down the road.  Ironically, I wrote this post in "draft mode" before this other post came to be.

*  How about those DPA's:)  Down Payment Assistance Programs have received more scrutiny than Mr. T attending a Richard Simmon's Summer Home Pajama Party.   For me, it's another way for a seller to sell their house and the buyer to be able to buy it.  Done legitamately, it is a worthwhile product & amenity to Mortgage Financing.

* 203K loans are one of the only Rehab Loans I know of at this point.   You know, you find a property at a decent price that needs work but you don't have the cash to buy it and do the improvements yourself.  These loans must be owner-occupied (as all FHA loans stipulate) and it's a great example on how you can turn a dive into a palace.  Or, at least better your abode and respective neighborhood.

I've done a few more Conventional and even Hard Money Rehab Loans and most of the banks/lenders backed out of delivering the product. The FHA 203K Loans are alive and swinging.

December 2008 - People, especially Americans, started believing that they can live on other people's money.  And more and more so.  First other people's money in your own country.  And then savings rate comes down, and you start living on other people's money outside.  At first it was the Japanese.  Now the Chinese and the Middle Easterners.

We-the Chinese, the Middle Easterners, the Japanese-we can see too.  Okay, we'd love to support you guys-if it's sustainable.  But if it's not, why should we be doing this?  After we are gone, you cannot just go to the moon to get more money.

     Gao Xizing, president of China Investment

If you've stuck around this long, here's a song...

Consumers, aren't we all?  If you own a home or are thinking about buying one, you just may be familiar with one of the battles going on right now.  That battle involves interest rates.  "Spoiled are we, yes we are," I say in my best Yoda voice. 

  In a world where some houses have stagnated or plain tanked in value, the same world where credit extended to folks in a position of uniqueness may have been stopped, we live in an economic atmosphere where some consider lower interest rates a part of the cure.  (Between me and you and please don't tell a soul... these lower rates have probably been going on WAY too long as an economic stimulus.  Frankly, should of ended long ago, but...)

  Take advantage of them while you can!  Many folks are sitting on the proverbial fence, wanting to know if rates may jump down a 1/4% or 1/8% or even a full freaking point!  Today, interest rates still hover in the high 4% range for prime borrowers on a 30-year fixed rate mortgage. 

  Hesitation may cost or that roll of the dice may save you a buck or two.   There are folks everywhere predicting where interest rates may end up.  I believe in the cycle, the circle.  Heck, I think we need to learn from nostalgia.  More than that, my best advice is the following:

Turn in your mortgage application and supporting documentation right now!  If you aren't ready to jump, at least you can practice that vertical leap when you are ready to lock in.  This way you will have already set the wheels in motion whether you are waiting to buy or refinance or getting on the bandwagon right away.  Here's a brief (albeit not totally extensive) list of what you'll need to get together:

* Last 2 years W-2's and 2 most recent pay-stubs

* If you are a renter, have your Landlord's name, address, and phone number handy. Make sure you have that info for the last 2 years of your rental history.  Assuming you pay your rent by check (and I hope you do) get 12-24 months of cancelled checks.

* Last 2 Months Bank Statements (All Pages) & the most recent statements on all asset accounts (401K, IRA, Mutual Funds, Retirement, Etc.)

* If you are Self-employed, you'll need the last two years tax returns with all schedules and attachments... along with a year-to-date Profit & Loss for your business.

* For purposes of identification, you'll need copies of your social security card and photo I.D. (typically your Driver's License)

* If you are refinancing, you'll need a few of the things above... but will also need your most recent Mortgage Statement & Homeowner's Insurance Dec page (which is the top page of your Homeowner's Insurance). It's also a good idea to get copies of your most recent statements on all other accounts you want to pay off... assuming you want to consolidate high interest debt.

* If you own more than one property, you'll need the most recent Mortgage Statement, Homeowner's Insurance Deck Page, & copy of any leases you have on rentals.

* Any credit issues (late payments, bankruptcies, judgments, etc) must be addressed in a very detailed credit explanation letter and appropriate supporting documentation, if applicable.

* If you aren't currently escrowing your taxes, you will need copies of paid/unpaid tax bills.

* Retirement/Social Security award letters if you are receiving that type of income.

Getting these things together and submitting to the lender will help ensure there are no delays when you want to lock-in to that killer interest rate.

  Think about it... hard and wise.  Speculation got us in trouble.  Don't let it do the same to you.  While you may turn out right in interest rates dropping a slight percentage here and there, it may not be wise to opt for a $300.00 savings if you can get approved for something that will save you $200.00 right now.  What if that $200.00 savings goes away all together?  Roll the dice all you want, my friends... if you can attain (at a relatively decent cost) fixed rates on a mortgage of any kind in the 4% bracket, history will probably be very kind to you.  Expect at least 7% before the Mayan Calender comes into play:)

 

Rate/Term Refinance

Your Credit Report

Should I pay points?

How to help make sure your loan closes as fast as possible.

 

 

 

Cash-flow is a foreign term to many folks these days.  The ability to spend, save, collect and consume aren't where we are used to being.  In fact, I would venture to say a whole lot of people have one mindset in their mind... save money.

There's one issue I have with that.  What some folks are doing, or rather thinking, is that they should save money in the short-term... and reap wealth when the "economy" and "housing industry" comes back.  Let me tell you something about short-term, it seems to translate to those very results as well.

*I should warn you; I like putting quotations around words for no other reasons than it makes me feel special and stupid... all at the same time.*

Let's just say that there's a bunch of individuals out there who aren't feeling (tangibly) the pinch that is going on with others.  Let's just say that they are more than making "ends meat".  They aren't rich and perhaps will never be.  Yet, they are secure in their financial situation.  They bought their house exactly two years ago with a 6% rate attached to their 20% down payment.  That's a 30-year fixed rate, if you are curious:)

Well, now there is today!  If you can get a fixed rate in the mid to high 4% range, keep your mortgage payment similiar or slightly above what it is now... why not shave three years of payments and get into a 25-year term?   You will pay (assuming you do;) a mortgage down faster and own your abode free and outright before you reach diapers... that's the goal, at least.  That's long term wealth, my friends.  If you can afford it, do it.  Especially now.

My guess is that some are and some aren't... in the postion or mindset of long-term wealth.

I think we got too heavy in quick bucks in Real Estate, the Greed Factor.  We also changed a paradigm from thinking a house is a roof over your head into a house is a way to make some coin.  Real Estate allows us to survive, folks.  There is no icing when you aren't eating the cake.

Real Estate makes coin, yet it's a roof.  It's time to cover your head and ignore your ego... coin in any investment has always been up and down depending on when you sell... or if you even do.  Keep when not wanted, sell when it is hot.  If it isn't either, just sit back and review the perception.  The medium considers all odds.

If you are lucky/capable/competent enough to be in the postion to do so, increase your payment another $100.00 or keep it the same to keep your financial lives in order. 

I believe in long-term wealth, even/especially when it involes long-term pain.  Wealth ain't "Lincolns" or "Franklins"... it's a smile:)

 

I typically add a song or song(s) to my post.  If you stuck around this long, here it is:)

 

A new beginning

Within the grasp of mortals

Who dare to persist

 

At times, I can be the most cynical guy in the room.  This moment won't be one of those times.

As 2008 nears to an end, there's a lot of stuff screwed up right now.  We live in interesting times.  I dare say that economically, most of us won't see this again in our lifetime.  That's the good news.

The bad news is we have challenges before us.  Sorry, this ain't euphoria.  In challenging times, we can fly or die... I'd like to think there is no in between.  Yet, there is.  Most of us are already there.

I see that "in between" as a spirit of sorts.  It rides upon the survival of one of the more unique species land has held.  That would be us.  You know, that group of imperfect characters chasing acorns in a big & mysterious world... that's us.  We seem to be a pretty persistent part of survival in this world.  At least we'd like to think so:)

I've been doing some heavy thinking recently, which is the second reason smoke is billowing from my humble abode.  While happiness seems to be our divine bottom line, I do wonder about us... about me.  Am I going to be okay?  Are we? 

If you are like me, you've read a lot of facts and figures and watched plenty of the news.  If you aren't like me, you are probably just bombarded by it.  I admire the folks that own no cell phone, have no internet, and haven't payed a cable bill in ten years.  At least they live in reality rather than have the perception of reality thrust upon them by various outlets of the media.

Times are a bit turbulent, ladies and gents.  How's that for my role in playing master of the obvious?  I suppose I should answer the question that this title asks.  My answer is quite simple, "I don't know for a fact but I'm pretty damn sure."  I do know that we are some resilient mother pluckers and we don't sit by to let someone else sort things out.  The blessed part of the answer to the question posed is that we always know.  It's within.

I read somewhere recently that 94% of folks concentrate on the negative which leaves 6% of the people to pick up the optimistic slack.  I'm not sure where that statistic was pulled from but I'm guessing it might not be a far reach from the truth.  Especially in challenging times such as these.  I suppose it is easy to play the part of looking at all the negatives without equally recognizing the layers of light that always accompany them.

Far be it for me to be the rose colored messenger to the masses, but strength in spirit is our greatest gift.  There are signs of it in our history, our present, our outlook to the future.  It may not always be present in the outer workings of this world, leave it not dormant among the shadows of our souls.  There are no shadows without the light.  

So as we bring down the curtain on 2008, let hope, simple kindness, & human spirit lead us into another year on planet earth.  My guess is we will be just fine:)

 

Awakening it

The passion of the longing

For it is right there

It's life.  Smile and Dance.  I do, even if it is just inside:)

 

This post was originally written in May of 2008 but I thought it was not a bad idea to re-post it now.  Amidst the talk of rock-bottom rates, there will be a lot of folks out there shopping for a mortgage.  So, from the synapses of my brain to your eyes... here's my recommendations when shopping for a mortgage:

I'm well aware that most of us fancy ourselves smart shoppers.  Whether we are buying a car, groceries, looking for the next Gas Station, sorting through bids on our next Home Improvement Estimate, shopping cell phone carriers...etc... we want the best deal.  We want it cheap and efficient.

After over 7 years of being in the Mortgage Business and learning from and being trained by folks who have been in the business since Jimmy Carter took office, I've learned two things.  Like any job, this can be frustrating as hell, but I absolutely love what I do.  I've also learned how to shop smart!  I'm only licensed in Pennsylvania and have friends & family outside the confines of where I can lend, they count on me to guide them accordingly.

That written, I want to pass some of my own personal thoughts on how you as a consumer can shop smart to make certain you are getting the best Mortgage for your needs.  I'd ask for a drum roll but realize you have better things to do ... so I'll get to it.

 

 5 Ways of Shopping Smart For A Mortgage:

-  Begin the conversation with any Mortgage Company/Direct Lender/Bank with the following question, "What's your Interest Rate?"  If the person on the other end quotes you a rate, hang up!  Well, don't hang up ... that's kind of rude, just say thank you and you'll get back in touch with them.  If you are being quoted a rate without them knowing anything about your financial situation, credit score and history, short and long-term goals, they aren't doing their job and won't be doing your situation any justice at all.

-  Education is always key.  While I love to know the what's in what I'm shopping for, I demand to know the why's of what is available and at what price.  Look for a teacher, not a preacher.  If they use the two ears they have and listen, what comes out of their mouth becomes all that more important.  Your goals and desires and needs are on the line, seek out an advocate of those very things.

-  There's another question you should ask, "How do you make your money?"  In any 'sales' occupation, this tends to throw some off if the consumer dares to ask that question of the Professional.  Ask that question though, it's relevant.  If they are doing right by you, they are earning every penny.  The price you will be paying for this service will be worth its weight ten times over on one of the biggest financial transactions you will ever partake in.

-  When narrowing down who you want to make application with, my suggestion is to narrow it down to three entities.  Ask a family member, friend or co-worker to refer you someone they had a good experience with.  Go to the bank you hold your depositories (checking & savings accounts) with.  Finally, do your own leg work by making a few calls and Internet inquiries, you'll want to shop with at least one Mortgage Broker.  Use your gut to get a feel for the guy or gal who just clicks with you and your needs. 

-  Service & Availability.  This is a huge one!  Answering emails, returning calls, meeting with you at their office, being there every step of the way and beyond your loan closing ... that's probably the person you'll want to deal with.  Having someone to inform you every step of the way and call just to say, "How the heck are you?" is something special & human.  I don't know about you, but I want to go shopping at a place that is special and quite human.  In the end, those folks tend to treat you the exact same.

Don't ever be a statistic!

 

 

 

Jason Sardi

Mortgage Consultant

First Choice Equity Group Inc.

610-439-2166 ext. 229

Toll Free @ 1-866-262-8720 ext. 229

jsardi@fcegi.com

Licensed with the Pennsylvania Department of Banking

To say your credit history & score is HUGE these days may be a borderline understatement!  For purposes of my experience, I'll concentrate on how credit relates to getting a mortgage to buy a home or trying to refinance the one you currently own.

Talking about credit is about as much fun as chewing broken glass while watching Yanni's latest video on VH1, at least to most.  Even for the most severe masochists or staunchest Yanni advocators, it's probably not a subject full of brim excitement.

So, I'll try to make this concise and simple.  Educating yourself and working with professionals who can guide you along the way, to make sure your credit is worthy of a three course meal at the White House, is crucial.  I'm not just talking about those whose credit is in the crapper.  I'm also writing to folks whose credit may be moderate or maybe you've never made a late payment in your life but your score is low.  The Credit Reporting Industry is wagging the dog, forget about whining... work and know the system.

Here are a few tips & quips:

* Get a copy of your Credit Report.  It may not provide your actual credit score, but at least you can verify the accuracy of the information on your report.  I've included information below that you can utilize to do this.  Quick thing here, credit modules differ within industries.  For example, the credit report a mortgage company pulls may differ from that of the institution giving you a car loan or credit card.  Mortgage folks weigh heavy on student loans and car loans and even heavier on your Mortgage History, provided you have one. 

* Communication is key with your credit.  If you are experiencing rough financial times, call them before they WILL call you.  Let your creditors know what is going on.  It probably won't stop them from reporting you late to the credit agencies, but it probably will provide you one less of a headache.  That's what life's all about... avoiding headaches:-)

* The only thing that may be just as bad or even worse than credit overload, is no credit at all.  Establish yourself in the creditor's eyes.  If you have no credit, get secured credit that reports to all three credit reporting agencies.  This may mean making a deposit at your bank and taking out a loan against it or pre-paying on a credit card.  If you are doing the latter, use that credit card and pay it off it off regularly.

...if you have a bankruptcy or foreclosure in your past, establishing 12-24 months worth of a good credit is absolutely crucial!

* Oh, those credit cards.  I'll put it bluntly, the bigger the differential between what your current balance is and what your available balance is, the better for your Credit Score.  Don't be afraid to call your credit card company and ask them to raise your available balance.  Don't use it, just have it there to improve your credit standing and score.

...sidenote on credit cards.  Don't be afraid to call your current credit holders and ask them to lower your interest rate.  If the first person you talk to can't or won't, ask to speak with a manager.  If unsuccessful in that endeavor, call back at a later date.  Be persistent & professional in your efforts.  Lowering your rate even the slightest bit can save you some serious money now and down the road.

* Pay your bills on time.  Yeah, I know, this is a no-brainer to most.  Yet, it doesn't report late to the credit bureaus until you fall 30 days late.  Try to make sure you don't get 30 days late on anything.  Sure, you may incur late fees if you are even a day behind on some credit, though Mortgage Companies typically give you a 15-day grace period before you incur any late fees.  From my experience, make sure your mortgage/rent is paid on time first, then student & car loans, then credit cards.  If you are a renter...

...pay your rent by check and keep copies of your canceled checks.  Twelve months worth will do (pay month by month, pre-paid bulk payments won't do you any favors...create a consistent history).  This establishes a housing history.  While it doesn't do anything positive for your credit, it does wonders when you apply to buy a home.

* Settle delinquent accounts for pennies on the dollar.  If you owe the International Bank of Jason Sardi a cool $5,000.00 and your account is charged off, you should call to arrange a settlement once it goes to collections.  Often times, you can come to an agreement for a lump sum of $2,500.00 or less and you may even be able to work out a payment plan.  Either case, make sure you pay that account satisfactory and get the paperwork of the agreement and the final pay-off to prove it.  Paying off delinquent accounts will probably drop your score at first, but will do wonders for your score down the road (provided you keep paying everything else on time).

* Avoid 'Hard' Inquiries.  Your current creditors may check your credit, but that is considered a 'Soft' inquiry and shouldn't affect your credit score.  Yet, if you are applying for credit out the behind, those inquiries can adversely affect your score.  It raises the red flag that you may be on your way to becoming credit dependent.  Psychologically speaking, never give them that drift, make them know that their livelihood depends on you... not the other way around.

* Credit Restoration Companies may be able to help but avoid anything that says, "Consumer Credit Counseling."  CCS is considered a form of bankruptcy in many lenders eyes and their ability to pay your debts at a 'consolidated interest rate & lower payment' is suspect and often times worsens the situation.  On the other hand, I've only witnessed one Credit Restoration Company worth its weight in the seven years I've been traveling this gig.  There may be and probably are more, but I've only witnessed one.  If you want more info, contact me.  Always remember though, you can do everything to make sure your credit is at it's best, yourself... it's a matter of being educated and persistence in your efforts.  That takes time.  Though time is a commodity not all of us have.

Below is info on the reporting agencies that you should contact to get started.  Even if you have an above average credit score, you'll pay more than you should if your credit score is even 20 points lower than the next guy or gal.  Save yourself money, put in the time and seek out the Mortgage Professionals to ensure that time is well spent.  Your credit is crucial... our knowledge of the industry and mechanics involved... can save you money and fulfill your dreams of home-ownership.  If you already are a homeowner, we can help you get on the path to make finances one less worry in this life.

 

Equifax

P.O. Box 740241

Atlanta, GA 30374

1-800-685-1111

www.equifax.com

 

TransUnion

P.O. Box 2000

Chester, PA 19022-2000

1-800-916-8800

www.transunion.com

 

Experian

P.O. Box 2104

Allen, TX 75013

1-888-397-3742

www.experian.com

 

Bear in mind, at this point, you're entitled to one free credit report a year.  Or, and I'd personally recommend this, you can get the whole batch which is simply called the 'Annual Credit Report Request Form.'  That's free as well!  The following sites will lead you in the right direction:

http://ftc.gov/credit

www.annualcreditreport.com

The bottom line in all this, the status of your credit can either cost or save you money.  Which option sounds better to you? 

***UPDATE!***

Lori brings up a good point with the following comment:

i Jason,

What a great blog. You gave a lot of valuable information. I envy your writing skills. I have just one comment, be careful on advise towards settlement's. While it may make the consumer feel like they have done the ethical and moral thing, it mayl not help their credit rating. In reality, you can actually hurt it in the long run. That item can now be reported up to another 7 years. Understand that this reporting is fromthe date of last activity. If you are dealing with an item that has been reporting for a while and is about to fall off, by paying the debt it will be re-activated and stay on for up to another 7 years. The bottom line is a negative entry is a negative entry.  Advise on repairing credit should be looked at on a case to case basis. Each credit profile is as individual as a fingerprint. While most of your information is spot on, there are certain things that can't be generalized. I wish I had your writing skills to be able to give out all the information in my head. I am working on that end of my social networking. Again, great post and feel free to call e-mail me with any questions relating credit repair, credit profiles or any credit related issue including identity theft.

Happy Thanksgiving-Lori Isaacson

 

11/25/2008 01:46 PM

by Lori Isaacson (Credit Restoration Consultants)

Delete Report as Spam

 

 

A new member of the Manson Lucchese Gotti Sardi family came aboard yesterday morning at 7:30 AM.  He's a kitten that I won't name just yet because he doesn't want Google to 'pick him up'.  He prefers the underground thing.  Actually, that's my request and not his.  Yet, he is so very friendly and seems to want to write his own little post because he was all over the keyboard the minute I sat down.  Plus, he's a purring madman.  I'll keep him underground for now, though I don't think that will last too long.

This little guy reminded me of a few things that my 'experience' and 'wisdom' helped me to forget.  This pertains to life and Real Estate as I know it:

• He is curious as hell and has no pre-conceived notions.  
• He has no fear.  He is willing to explore this new territory and find his place.  Even if that means confronting a somewhat hostile 'Orange Dude' named Baxter that isn't particularly happy about the new guy's existence.
• All he is looking around for are friends.  He's wide-eyed and destined to make them.
• He's willing to love everybody, even if they don't love him back.
• He just wants to be important to somebody... it doesn't have to be everybody.
• The guy looks out the window to the outside world and wants to be a part of it, though he doesn't realize the dangers.  He wants to exist because he exists.
• He is counting on someone to help him out and he doesn't even know it. (opppppppppppppppppppppppppppp)  that was his first attempt at typing.  Seriously, the guy could be a player.  He types faster than I do and makes more sense.
• All he seems to want to do is learn.  He's new and wants to fit in even if it means fading out. 
• There are no boundaries or limitations.  The young guy doesn't know any rules other than not hurting someone else.
• Folks will comment on how adorable he is and he will take advantage of such by sitting on their laps and purring away.  Innocence is just as frighting as getting along with those who share your existence.

I don't know about you, but 'growing up' sucks and the 'Real World' can kiss my pasty white posterior.  Brilliant notions are nothing but simplicity.  Look your newborn in their eyes, you will find the truth. 

I suppose you can learn a lot from a kitten, even if you don't know its name.

 

 

 

 

 

Baxter & Baby Sardi

Let's get to it...

Should you refinance?  There are some homeowners who are on the fence, perhaps scared, in a jam, or have a ton of equity that isn't doing much for them.  Those folks are the ones who really need to look at their options (pro & con) and make a decision.  This could be a great time to take advantage of a market where interest rates are still pretty low.  If not, it is usually a great time to make a plan for down the road.

Should you buy a home?  If you are qualified, I don't see why not.  It's a buyers market in a lot (if not most) areas.  I'll put it like this; if you have money in the bank after you leave the closing table... it may not be a bad idea.  If you don't, it's a risk that may not be in your favor. 

Should you take out a second mortgage or line of credit?  I don't see them often right now, hardly ever.  Their availability is almost nill.  If you are looking for one, a local bank may be your best bet.  To answer the question, to pay off high interest debt and save you money that you won't in turn spend on something else... YES~!  To do home improvements~ it may not be a bad idea.  To supplement your income... find another job.  No, seriously.

You want to sell your home in the worst way but probably won't get what you want out of it?  Yup, this can be an issue.  In hindsight, you overpaid and are now undervalued.  Consult a trusted Realtor... period.

Is it a good time to invest in Real Estate?  I'll get to that answer at the very end of this post.

How do I shop for a mortgage?  It sounds somewhat odd, but how do you pick out your favorite vegetable?  It's somewhat difficult and owns many variables.  Folks want a low interest rate, no surprises, accountability, trust, and something that will benefit them now and down that road.  That's just a guess; I have no hardened proof.  Getting someone referred to you from family, friends, Realtors, attorneys, etc is a good place to start.  But you want to know my other piece of advice which you can do on your own... read the blogosphere about mortgages.  Not only will you get some insight on Mortgages, you'll get insight on the person.  The latter is as important as the former.

I can't qualify to refinance, what now?  - That depends on what you are looking to accomplish.  If you wanted cash-out, to pay off your mortgage faster, lower your rate... most likely you can't refinance because you lack the equity or your credit doesn't qualify.  If it is the former, you have little control in that area.  If it is the latter, working with a Mortgage Professional who understands credit is a must.  They should be able to lead you in the right direction.  But, if your rate is going to adjust soon and you can't qualify to refinance, it's time to modify your loan.  I will be writing a post about that upcoming.  If you have immediate questions, contact me at my information below.

Are there any out of pocket fees if I refinance?  Yes!  A one-time non-negotiable and non-refundable fee to yours truly in the amount of one million dollars.  Of course I'm kidding.  All applicable closing costs can be rolled into the loan amount, providing you have the equity to do just that.  The only out of pocket fee is the appraisal fee, a third party fee.  On a single family home in Pennsylvania, I've seen that fee range from $300.00 to $400.00.

I want to buy a home, what's the first step?  Find a Buyer's Realtor.  They will represent you and you don't pay them a dime out of your pocket.  The very next step will be to get pre-approved with a lender.  Do some shopping on your own and maybe talk to a few lenders your Realtor suggests and has maybe worked with.

One final note that I'd like to point out.  I've heard a lot of yells hype whispers from folks waiting to do anything (buy a home or refinancing) until the market 'comes back'.  Ponder the following:

The best time to buy something is when nobody else wants it.

 

 

Other articles that may answer some Mortgage-Related questions:

Should I pay points?

How to help make sure your loan closes as fast as possible.

Simple but important tips regarding your Credit & Credit Score.

Buying a home in Pennsylvania.

Rehab Loans.

There is the 'norm' and 'not so norm' in lending.  Most folks know about refinancing, at least the general aspects of it.  Perhaps you want to consolidate debt, shorten your term, lower your rate, turn equity into cash, or some other reason.  You probably (whether you are a homeowner or not) have heard about refinancing before.  You do a quick search, you'll be able to find a boat load of information on refinancing and a Mortgage Professional who can help you out.

Then there are loans to buy a home (maybe even for the first-time) or purchase an investment property.  Those are talked about quite often as well.  You do a quick search, you'll probably be able to find the information and a Mortgage Professional to help you out.

In fact, the majority of my business comes from helping people buy or refinance a home.  However, there are other products out there that fit the needs that don't seem to be as commonly addressed.

I received a phone call yesterday from a gentlemen who expressed a hint of frustration.  Apparently, the guy had a heck of a time finding a source that will do Land Loans.  He had searched high and low before he finally found me.  That reminded me that there are still some holes in lending that need to be filled, so I'd like to take a brief moment to address some of the loans we offer that fill those very holes.

We are still doing Construction Loans & Rehab Loans throughout the State of Pennsylvania!

Our Land Loans (to buy vacant land) are a specialty that many have already taken advantage of and here's a brief look at them:

* 70% Loan-to-Value

* 25 year term.

* Adjustable Interest Rate that adjusts annually,  6% Lifetime Cap.  The start rate yesterday was 6.625%!  There is no balloon so you could keep this loan for the duration if you chose too.

* Will even allow for up to 6% seller assist with closing costs!

 

And here's a few more features and niches that you may not hear about too often:

 

Easy Approvals

 

Self-Contracting with Approved Credentials (Looking to Rehab a property and want to do the contractoring work yourself?  This is allowed based upon credentials.  It is best to get this process started immediately in the loan process as not to delay closing.)

 

Rehab Loans

 

Manufactured/Modular

 

Interest Only During Construction

 

Owner Occupied and Non-Owner

 

Log Homes

Feel free to email me or give me a call if you have any questions on the above products or to run your particular scenario by me.