ShareThisHow to Get Mortgage Financing in 2011!
In my last blog post I quoted the Federal Reserve Chairman, Ben Bernanke who stated at the international monetary conference in Atlanta Georgia a few weeks ago that “despite historically affordable home values, many buyers are unable to access financing due to tightened lending standards.†While this statement is true, there are a couple of things you can do to that will help you get financing and make the process a little smoother.
1. Start the home buying process early. If your goal is to purchase a home in 2012 you should start getting prepared now. Get a free copy of your credit report from AnnualCreditReport.com.
2. Contact a lender (loan officer). After you get your report contact a lender and tell him/her that you want to review your credit report so you can become mortgage ready. I have my clients met with lenders up to a year in advance to get prepared for homeownership. When you start the process early this will allow you time to increase your credit scores so you can get the best pricing (better interest rates). Most people wait until their lease is about to expire and then they decide to purchase a home instead of renting, but they are not what we call “mortgage ready.”
3. Follow the game plan. If you follow the game plan your lender and I provide this will help your odds of getting financing with less stress. The market has changed since the so-called boom your loan must make sense to the lender.
If you start early, get your report, meet with a lender and follow the game plan you can make the process a lot easier on yourself and more enjoyable. If you need a good lender to guide you through the steps contact me and I will send you a list.
Now is a Good Time to Buy!
A recent survey backed by the National Association of Home Builders (NAHB) found that Americans see beyond the immediate housing market to the enduring value of homeownership which still remains essential to the American dream. The Chairman of NAHB reported that 75 percent of those polled said owning a home is worth the market fluctuations and 95 percent of homeowners say they are happy with their decision to own.
I assist many first-time home buyers with the purchase of their first home and I can say that 100 percent of my clients were happy with their purchase. I contact my clients after they settle in their new homes to see how they are doing and even in this economy all of them were happy with their purchase. No house is perfect and sometimes things happen unexpectedly, but I have not had a client who said “I wish I had not purchased this house.” This tells me that homeownership is a good thing and still the American dream for many people. Buying a home is not as easy as during the real estate boom and can be challenging as the Federal Reserve Chairman, Ben Bernanke reported last week at the international monetary conference in Atlanta, Georgia. He stated that, “despite historically affordable home values, many buyers are unable to access financing due to tightened lending standards.” This is true so you need to prepare for homeownership. If you are thinking about purchasing a home next year you need to get started now. In my next blog post I will show you how to prepare so getting financing from your lender is not so difficult.
Spring Market Has Arrived!
Spring is here and the real estate market is beginning to heat up! Programs for first-time home buyers are in full bloom. I am beginning to see a few multiple offers on really nice houses. Here is a spring cleaning item you can do to get prepared.
Get preapproved before you go house shopping. On Friday my wife and I were showing a foreclosure property to one of my clients, as we were leaving the house a couple approached us about the property. My client told the couple that he was not interested in the property and he gave them his listing sheet (detailed information about the property). They wanted to take a look at the property and I told them I had one more property to show my client and I could meet them back at the house if they did not have an agent. When I returned to the property one of the first questions I asked ” have you been preapproved?” They said no. After showing them the property I told them I could assist them with getting preapproved and they should do that first before continuing to look at houses. In the spring market getting preapproved before you start looking at houses is essential because you have more active buyers in the market during the spring. You could potentially lose out on a house you like because some one else took the time to get preapproved before touring houses and you didn’t.
If you need help in getting preapproved I can provide a list of good lenders contact me at 410-977-7176.
FHA Extends ‘Anti-Flipping Waiver’ to Speed Sales of REO Homes
The Federal Housing Administration (FHA) announced Friday that it is extending the suspension of it’s ‘anti-flipping rule’ through the remainder of 2011. FHA Commissioner David Stevens says the temporary waiver will accelerate the resale of foreclosed homes in neighborhoods that are overrun with abandoned properties and blight. The move is intended to help stabilize home values and improve conditions in communities experiencing high foreclosure.
FHA regulations typically prohibit insuring a mortgage on a home owned by the seller for less than 90 days, but in February of last year, FHA temporarily waived this regulation through January 31, 2011, noting that in today’s foreclosure-ravaged marketplace, the agency’s research has shown that acquiring, rehabilitating, and reselling distressed properties often takes less than 90 days.
Federal Home Loan Bank (FHLBank) Funds are Available up to $7,500 Towards Down Payment and Closing Costs!
Starting yesterday January 2oth, Federal Home Loan Bank (FHLB) funds became available again. This first-time home buyer program (FHP) provides matching funds to qualified first-time home buyers. The FHP match contribution is 5-to-1. Specifically, for every $1 of contribution the home buyer provides; FHLBank will provide assistance, up to a maximum of $7,500. To receive the maximum contribution a first-time home buyers needs to contribute $1,500. I’ve had many first-time home buyers benefit from this program. In 2010 the Federal Home Loan Bank program did not start until Mid April. This year you can take advantage of this program right after you get your tax refund. So don’t delay!
Owner-occupied units that are intended as the primary residence of the home buyer are eligible for FHP funding. Eligible units include the following owner-occupied 1-to-4 family properties;
1. Townhouses
2. Condominiums
3. Foreclosed properties
4. Cooperatives
5. Manufactured and mobile housing (manufactured and mobile homes, transportable in one or more sections, which are built on a permanent frame and designed to be used as a dwelling when connected to the required utilities.
6. New construction (new construction requests are eligible when the home is within 30 days or less of the closing date for the loan.
Any first-time home buyer interested in using this program must use a participating (member) lending institution. Contact me to get a list of those members. Also if a first-time home buyer owner-occupy the property for 5 years the grant funds are forgivable. To receive additional information about the program and the guidelines contact me.
Happy New Year! Happy House Hunting!
It’s now 2011! Will this be the year you finally start the process of purchasing your new home? I believe there will be great deals still available in 2011. Don’t wait until interest rates get to 6% before you decide now is the time to buy. My last client that settled on December 29,2010 received an interest rate of 4.50%. I don’t know how long rates will remain so low. As the economy gets better and consumer confidence begin to increase so will interest rates. We still have a lot of short sale and foreclosure properties on the market. I don’t see us having a reduction of distress properties for at least a couple of years. My clients received good deals on short-sales and foreclosures in 2010. Bank are trying to get as many of these properties off of their books as possible. Interest rates are still low, inventory is plentiful, Banks as well as sellers are willing to work with buyers the best they can. This will create good opportunities for buyers again this year.
Baltimore Housing Prices Saw Year-Over-Year Price Declines in Third Quarter
Baltimore was one of the 76 cities that saw year-over-year price declines last quarter, down 1.5%. But Washington, D.C., median home prices in the third quarter were up 4.3 percent from a year earlier, according to NAR (National Association of Realtors). The median price of $338,600 was still down 21 percent from peak prices in 2007.
The National Association of Realtors says despite the nationwide decline, median prices rose in 77 of the nation’s 155 largest cities and were unchanged in two others. In the third quarter of 2009, year-over-year prices were up in only 30 cities.
Read more: Washington home prices up 4.3% | Washington Business Journal
Read more: Washington home prices up 4.3% | Washington Business Journal
Free Home Buyer Seminar at the Pikesville Library October 26th 6:00pm
I am conducting a free home buyer seminar at the Pikesville Library on Tuesday October 26th at 6:00pm with Derek DuBois of Bank of America Home Loans. We will be covering the following topics;
Understanding the Current Real Estate Market: Should I Buy or Sell?
The Different Types of Mortgage Financing Available!
Understanding How to get a Loan in 2010!
Why Most Buyers Lose Thousands of Dollars on Their Home Purchase!
Understanding the Steps: A Key to Successful Homeownership!
How to Successfully Purchase a Short Sale or Foreclosure!
Come learn what you must know to ensure successful homeownership!
To register give me a call at 410-977-7176.
Pikesville Library 1301 Reisterstown Rd. Pikesville, Md. 21208.
Buyers What Are You Waiting For? 30-Year Mortgages Fall to 4.19%!
Can you believe it! 30- year mortgages has fallen to 4.19% The average rate on a 30- year fixed mortgage is now the lowest it has been in six decades. Freddic Mac’s weekly rate report says a 30-year fix fell to an average of 4.19 percent in the week ending October 14, down from 4.27 percent last week, the lowest since at least 1951 based on FHA data back to 1948.
The last time this happen was before my time and I do not believe interest rates will go this low again in my life time. Buyers what are you waiting for? I guarantee you that now is a good time to buy and those who wait will regret they did one day.
Free Home Buyer Seminar at Na’Klectic Natural Hair Gallery and Spa Saturday September 11, 2010!
I will be conducting a free home buyer seminar on Saturday September 11, 2010, from 12-00pm- 2:00pm at Na’Klectic Natural Hair Gallery and Spa. The theme of the seminar is  “How to Buy A Home in the New Economy and Save Thousands of Dollars.” Some of the topics I will cover are 1. Understanding the current real estate market: Should I buy or sell? 2. Why most buyers lose thousands of dollars on their home purchase! 3. Understanding the steps: A key to successful homeownership! 4. Understanding how the changes in the mortgage industry can affect you getting a loan in 2010! 5. How to successfully purchase a short sale or foreclosure!
Don’t miss this presentation it will be fun, educational, and entertaining. I hope to see you there! Na’Klectic Natural Hair Gallery and Spa 36 East 25th Street Baltimore, Md. 21218Â 410-889-0287. Each attendee will receive a free copy of my report “How to Buy a Home in the New Economy and Save Thousands of Dollars.”
