If you are going to boogie, learn to dance.
As many of you know, the Mortgage Market is changing faster than Tom Welling's Superman character into his "get-up" in the television show, Smallville. It's truly a jungle out there and you'll need a Machete, Cargo Field Pants, and the proper Guide to navigate you through the ever growing foliage. As a guide in the jungle that is the Mortgage Industry, I wanted to give some simple bits of information to arm you on your journey.
In no particular order, please take note of the following as they may be pertinent along your travels:
- As of April 1st, 2009, FHA will reduce the LTV's (loan amount compared to the value of your home) on cash-out transactions. It currently is 95% but that will be cut back to 85% real soon. To ensure you can get in before the guideline changes, an appraisal case number must be assigned to your home before said date.
- 100% Financing is still available! Yet, the only two products currently sporting this popular product are VA & USDA Loans. For more information and shameless self-promotion on the latter, click here. Might I add that if you are going to utilize 100% Financing, try to ensure you have money in the bank after the fact. Being a homeowner bears certain responsibilities. God forbid something goes wrong and you don't have Lenny The Landlord to fix the issue. You don't when you own a home. The responsibility falls on you.
- Know your Credit Score. I can't stress how important that is these days. I got word from one investor today who has changed their minimum credit score on ALL Mortgage Products to 660. Most are at 620. A few still may go below that but proceed with caution. Know the rules and learn to use them to your advantage. For more extensive insight on Credit, grab that mouse and left click right here.
- Pay close attention to what homes like yours are selling for (not just being listed for) in your area. That's a good indicator of what your home is currently worth in this market.
- While the media may give you the heads up in the drop in interest rates, contact your Mortgage Professional to get the real scoop. Taking the anchor of CNN's advice on where Mortgage Rates are at are akin to asking me what the weather will be like tomorrow. By the way, you can expect a balmy day with hints of fog glazing the ides of morning... turning into a slightly breezy, overcast, but generally nice day. High will be 99 Degrees. Low will be -20. But don't quote me on that.
- If you are considering buying a home in the least bit, be aware of the First-Time Homebuyer Tax Credit. It could prove to be another incentive (in addition to low interest rates and a large amount of inventory) to take that next step in owning your own home. It isn't a reason in of itself, yet it is icing on what could be a very delicious piece of cake.
I will be writing about five more useful tips very soon. I wanted to keep this short and sweet, like Ryan Seacrest:) Besides, you only have so much time on your hands while you sift your way through this jungle.
And if you aren't already a homeowner, you may want to take that leap. If you have the right Guide, you aren't just drawing on faith when you are in mid-air.
About The Author: Jason Sardi has been on the lending side of the Real Estate Business for over eight years. His passion for helping people and general disdain for con-artist blowhards has kept him trying to do right by as many people as possible along the merry way. You can reach this happy chap by email @ jsardi@ihmci.com or by phone @ 610-439-2166 ext. 229. He's a survivor in that jungle out there and has the scars to prove it:)
