Archive for September, 2009
I need Help!!!!!
Posted by linda in Uncategorized on September 22nd, 2009
Yes, it is crazy out there!
Yes, there are a lot of questions!
Yes, I need help and where do I go?
With this ever changing Mortgage Market you need someone you can trust and count on to answer your questions. It is most important when dealing with purchasing a property to have a Realtor and a Mortgage professional that work well as a team. If they don’t know one another, they can do the job, but it could be the difference in closing your deal and not closing your deal. You know that in your own job, you need a good team of either your fellow workers or a combination of you and your clients to make that team. Do not work with anyone you cannot count on! If you are refinancing, you and your Mortgage professional become your team. Make sure it is someone you have been referred to by a friend, work friend or family member. If you trust your friend, you would trust their referral.
Do you qualify for a tax credit?????
Posted by linda in Uncategorized on September 21st, 2009
“I will qualify as a first-time home buyer, and I am currently set to get a small tax refund for 2008. Does that mean if I purchased now that I would get an extra $8,000 added on top of my current refund?”
The short answer? Yes,
To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as “first time” buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit.
Additionally, there are income restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers may receive a partial credit.)
Applying for the credit will be easy – or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.
To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as “first time” buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit.
Additionally, there are income restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers may receive a partial credit.)
Applying for the credit will be easy – or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.
What is this about foreclosures and credit issues…
Posted by linda in Uncategorized on September 20th, 2009
In 2008 there were about 1 million bankruptcy filings. This means that in the US one in three hundred people declared bankruptcy. But a bankruptcy is still, for the most part, considered a last-ditch option for dealing with overwhelming debt. Most of your assets go away, and your credit rating takes a fall (a bankruptcy for ten years, whereas a foreclosure remains on it for seven). Most homeowners will avoid a Chapter 7 bankruptcy and instead file for Chapter 13 if they want to avoid a foreclosure.
A Chapter 7 filing can wipe out unsecured debts, but secured debts are tied to a specific asset, such as a mortgage secured by a home which reverts to the creditor. A Chapter 13 bankruptcy doesn’t actually wipe out the debt but can shield debtors from their creditors for several months during the forbearance period until a court-ordered repayment schedule can be worked out. During this time most homeowners try to work out a loan modification program.
The FICO score helps the creditor understand the borrower’s likelihood to repay a debt. Your FICO score is composed of your payment history and the length of credit history, along with looking to see if are you adding additional credit and what your current credit line limits and type. After having said that, many lenders will look at your credit and when they see that you have used credit counseling, is can throw up a red flag for them. They may not use it against you but could. My advice is always call your credit card companies first on your own and work with them. They would rather work with you instead of a counseling company. You can very often get as much done as they can and that will never affect your credit. It will also save you some money. My two cents…
What is happening in our crazy world of Mortgages???
Posted by linda in Mortgage Updates on September 14th, 2009
Crazy though it may seem, our economy is recovering and in an upswing. I know it is hard to believe with the unemployment numbers being at almost 10% and foreclosures being at an all time high but we are riding it out and slowly but surely we are headed in the right direction. Keep you eye on the Retail numbers that will be out on Tuesday. We believe they will be a bit worse than expected which will affect the Bond Market therefore lowering mortgage rates. We shall see. I will keep you posted.
The Mortgage Industry is continually changing and this is on a daily basis. There are new programs and guidelines that come out almost everday and usually make it a bit more difficult to get loans through. So we make adjustments to allow borrowers to qualify for loans. This usually involves a lot more patience on both the Mortgage Broker and the borrower. It also means that if you are dealing with a purchase, it is more important than ever to have a great team working with you. This means a Realtor and Mortgage professional working with the borrower to be a great team! Loan turnaround times are exceptionally long these days. What was a 30 day loan close is now minimum of 45 days.
The most important part of my job now is to educate my borrower to what is happening in our industry and how it affects them. This is not a bad thing but a good thing. Education is a good thing but will take more patience on all of our parts. We are still refinancing and still buying homes. THIS IS GOOD NEWS!! Let’s all remain positive and work together and we shall overcome!.
Have a great week.