Weekly Segments

Jim Bigelow & John Bucanan on Roof Insurance [Video]

In this video Jim Bigelow & John Bucanan talk about the importance of roof replacement Insurance. Check back every week for more real estate and insurance insight from Jim Bigelow & John Bucanan.

First Time Homebuyer Program thru Community Action Project

First Time Homebuyer Program thru Community Action Project

Community Action Program (CAP) has executed a contract with the City. This means that eligible buyers are able to utilize CAP funds for down payment assistance and closing cost up to 5% of the contract sales price not to exceed $5000.00.

To qualify for the down payment assistance/closing cost the homebuyer must complete the Homebuyer Education Class which covers budgeting and money management. This seminar is held on specifically schedule Saturdays.

For More information please contact me direct!

Heather Jobe 918-698-8938
hjobe@firstmortgageco.com
Eligibility Requirements

To qualify for down payment/closing cost assistance up to 5% of the contract sales price up to $5000.

• Complete CAP’s Homebuyer Education Program
• Purchase a home in Tulsa, Creek, Wagoner (Broken Arrow side) or Osage county as your primary residence
• Qualify for bank financing to purchase your new home
• Have a total annual household income that does not exceed the following guidelines:

Are You Paying Too Much for Insurance?

John and I discuss the importance of talking with your insurance agent to discuss your coverage once a year. Your insurance agent should be someone who you get along with and can easily communicate with. We want you to get the most for your money. If you have any questions email me at jim@jimbigelow.com or John at john.buchanan@countryfinacial.com.

Tips To Avoid Mishaps on a Mortgage Application

Tip 1: Try not to move cash around.

During the loan application process, your First Home Mortgage loan experts will have to verify all the income and assets listed as part of your application. Moving these assets around can create a paper trail nightmare. The best advice is to leave everything where it is and discuss any changes you wish to make with First Home Mortgage Loan Officer.

Tip 2: Document large deposits.

Your First Home Mortgage Loan Officer will have to verify all sources of funds for the transaction. We’ll be looking at any large deposits into your asset accounts (checking, savings, money market, etc.). You should be prepared to document all sources — perhaps a copy of a paycheck, bonus check, money from the sale of an asset, etc.

Tip 3: Selling something?

If you’re selling a large asset, such as a car, antique, baseball card collection to come up with the cash for closing, please document the sale. Keep everything, including the check the buyer gives you, car title or a bill of sale. Sometimes you’ll even need to get a certified appraisal of the item. Talk to your First Home Mortgage Loan Officer if you have questions.

Tip 4: Document gifts appropriately

Large cash gifts from relatives are very common when purchasing a home. If you are anticipating receiving a cash gift from a relative toward the purchase of your home, please notify your First Home Mortgage Loan Officer. Also refer to the Gift Letter form found in the First Home Mortgage document library.

Tip 5: Save everything!

Become a paper hound. Keep all of your bank statements, pay stubs, tax returns, along with any W-2s, 1099s or K-1s and any other financial papers from the past two years in a handy place. If you sold a home in the past two years, have your (HUD-1) Settlement Sheet handy. Try to create a file where you can consolidate all of your financial paperwork for easy access. When in doubt, just pop it in the folder. You never know when you may have to produce an item that you did not expect.

Tip 6: Avoid new lines of credit

It is a good idea to avoid any new sources of credit as it will materially change your credit report. Additionally, if you’re planning to pay off major credit debt before closing, hold off until you’ve spoken to your First Home Mortgage Loan Officer. We may be able to pay off those debts at closing without affecting the application process.

Tip 7: Review your credit report

The best way to get a jump start on your mortgage application process is to know what your creditors are saying about you. Request a free credit review with your First Home Mortgage loan officer.

Tip 8: Tell us about a new job

Making a career move? Make sure your First Home Mortgage Loan Officer knows about it as soon as possible so that we can ensure all appropriate changes are made to the loan application.

Credit Scores & Credit Reports- Things That Hurt and Things That Help

Ever wondered exactly how the credit reports and credit scores could effect you? Here is a simplified breakdown of what can help you and hurt you regarding your credit.

Credit Score Model
• Scores are Somewhat Counter Intuitive
• 30% of your score is based on Balance to Limits
-Individually & Cumulatively
-Balances normally reported at month End.
• Closing Accounts could hurt credit scores
• Recent Negative Information could be Damaging
-Paying off 5 year old charge off becomes recent and could damage credit rating.

What Can Consumers Do?
• Keep balances low to credit limits
• Some credit issuers don’t issue limits
-Dispute all bureaus to get issuer to report
• Monthly accounts like American Express will demonstrate high balance over time
• Review person credit reports regularly

Annual Credit Reports
• New Federal law provides for annual credit reports
-www.annualcreditreports.com
-Available Annually, Quarterly

Rapid Re-Score
• Independent Credit Re-sellers can provide updated scores based on corrected information
• Most re-sellers part of NCRA or National Credit Reporting Association www.ncra.org
• Potential increases 20-100 points
• Cost ranges from $75 to several hundred dollars based on trade lines involved

Identity Theft
• Identity Theft is the fastest growing While Color Crime
• Can drive scores from 700+ to 580
• It is time consuming to resolve
• Cost incurred can be extensive
• Check your credit report regularly
• Be aware of inquires from Out of the Area
• Dispute with Grantor immediately and file a fraud alert , police report or fraud affidavit
• You may have to file suit to get the identify theft resolved

What about Inquiries
• You can shop for 45 days with a hard inquiry, Mortgage, Auto, etc
• Inquiries pulled from consumer do not count against you

Who else wants to know your Score?
• Employers view credit reports as inexpensive background checks
• Insurance Industry- if under financial stress you may be more prone to cause loss for insurance company- increase rates
• Mortgage Insurance Premiums can be impacted by scores, positively or negatively

Does it Still Make Sense to Buy versus Rent?

Nearly a full third of households are still renting. If you’re one of them, you could be paying a hefty price.
Before talking about purchasing a house, it’s important to note two things. First—and this is extremely important—the housing market is actually localized. So the outlook in your hometown may be different than another city across the state or on the other side of the country. Second, home prices are tied to employment. For example, if someone feels like their job is in jeopardy, it might be enough to stop them from making a move. So, if your local job market is feeling a pinch, the home prices in your area may be down as well.

But with all those factors under consideration, it still makes sense to buy instead of rent. In fact, renting may be costing you a bundle.

Let’s look at an example…

If you are paying rent at $1,500 per month and your landlord increases your payment by a modest 5% each year, you would wind up paying just about $100,000 over a 5-year period! Worse yet, after forking over $100,000, you still would have nothing to show for it.

And speaking of having nothing to show for it, how about any improvements you might make to a rental property? It’s not uncommon for renters to freshen up the paint, install new light fixtures or plant some nice flowers outside. But guess what… all your efforts, labor and the benefit of that improvement belong to the landlord, not to you.

With convenient down payment options still available for qualified buyers, affordable home prices and low interest rates, the very same money could have been used towards home ownership.

Even using a standard 30-year fixed program, a mortgage of $300,000 could be obtained with a total monthly mortgage payment—including property taxes and insurance—of around $2,200. Assuming a 25% tax bracket, this would be equivalent to the average amount spent on rent during the same period after your tax benefit.

And the benefits of home ownership are quite considerable. Because the mortgage is being paid down each month, equity is being built. After 5-years, the $300,000 mortgage could be reduced to $279,000, adding $21,000 to your net worth!

Visit www.irs.gov and use the IRS withholding calculator. This very handy tool can quickly show you the impact that a change in withholding will do to your net paycheck. Remember to balance this with the expected refund and it is always a good idea to check with your tax advisor.

Should I buy down my Mortgage Rate?

Interest rates are constantly in flux. In fact, the interest rates will likely change between the time you start your mortgage application and the time you are approved.

Locking the interest rate does not become in effect until you have property and contract.
First you need to understand how mortgage rates are priced.

1. The longer out you lock a rate the higher the rate. You will have a higher rate if you lock for 45 days out vs. 30 days out. Make sure if you lock on a 30 day you can close by that time otherwise the rate will have to be extended and additional fees apply.

2. Most buyers should be asking what current rates are WITHOUT any points. This means you don’t want to pay anything to get that rate and you are not buying down the rate. It is also known as PAR pricing.

3. You may decide to buy down the rate to get a lower rate. Have your lender run a good faith estimate for you both ways (buying the rate down and not buying the rate down). Although a lower rate always sounds more appealing it is not always the best option.

4. You need to decide how long you plan to stay in the new residence. For example, if you plan to stay in the new property a maximum of 5 years then it may not be worth buying the interest rate lower. You may not recoup the expense of buying the rate lower.

5. Ask if you lender has a float down option. This means you can lock and if rates go lower do you have an option to get a lower rate prior to closing. Most of these options require an charge up front and some are refundable and some are not. Ask questions.

What is the Mortgage Application Process???

Before applying for a loan, you should check the current interest rates, you may want to review your credit report for accuracy, and begin shopping for a lender. When, comparing Mortgage Lenders, consider such factors as lock-in policies, fees and loan options.

Comparing Interest Rates:

Interest rates are constantly in flux. In fact, the interest rates will likely change between the time you start your mortgage application and the time you are approved. Even so, it’s wise to compare the rates offered by different lenders before you apply for your mortgage.

Filling Out the Mortgage Application:

After you’ve chosen a mortgage lender or mortgage broker, you’ll fill out the mortgage application. Be sure to complete the application honestly and completely. If you inadvertently (or intentionally) put false information on your mortgage application, it could seriously hurt your chances of getting approved.
Take your time when filling out the paperwork, and be sure to get all your questions answered by the mortgage lender.

Providing Mortgage Documents:

During the mortgage loan application process, you will be asked to provide a variety of documents to the mortgage lender. Always ask the lender whether or not they need the original document. If they need the original, be sure to copy each document for your own records when you apply for a mortgage.

Mortgage Approval With Conditions:

In most cases, mortgage approval comes with certain conditions. These conditions may include a satisfactory appraisal, termite inspection, etc. Ask your lender what conditions and requirements you need to meet, and be aggressive about completing them on time.

Making Changes to Your Application:

If anything significant changes during your mortgage application process (changing jobs, marital status, etc.), tell your lender as soon as possible. On closing day, you will be certifying that no significant changes have occurred, so it’s important to address changes as they arise.

Conclusion:

Keep in mind that everyone wants you to be approved for the mortgage loan as much as you do. It’s in everyone’s interest to see the process through to successful completion. Be honest and helpful, and things will work out in the end.

Should I Lock or Float My Mortgage Interest Rate?

When shopping for a mortgage, what is the best time to float your rate and when should you lock it in? The answer to this question depends on two things:

1. Your objective – if you are buying a home, would your chances to qualify for the loan be jeopardized if interest rates rose? If you are refinancing, will the current interest rate save you a significant sum of money?

2. Your tolerance for risk – floating an interest rate can benefit a client in two ways. First, if rates were to fall, the client could lock a lower rate. Second, if a client chooses to wait until just before the closing date to lock the rate, often times the loan officer can give the client a small break on costs because the mortgage company doesn’t have to take on the risk of managing the lock. So, if you’re willing to risk the possibility of interest rates rising, it may pay off via a lower rate or lower costs. If you don’t like the idea of taking that risk – lock the rate.

What is a Rate Lock?

A rate lock is a pledge between lender and client that guarantees the loan at a specified interest rate. The lender and client have a window of time, usually 15, 30,45, or 60 days, to close the loan. The shorter the lock period, the better things look from a financial point of view. Locking a rate means the lender now has taken on the risk.

However, don’t confuse a rate quote with a rate lock. Just because a lender gives you a rate quote doesn’t mean you’ve locked in at that rate. This is a common mistake many prospective borrowers make. Make sure you are crystal clear as to whether you’re locked or not and, if you are locked, what the rate and terms are. Get it in writing.

What Does It Mean to Float?

Floating means you are willing to take the risk that interest rates will either not go up or that they will fall. If rates have been dropping, then you might want to take a chance that rates will be lower by the time you close your loan than they are today.

Here’s some practical wisdom from Bob Walters, chief economist, “Far too many people, who couldn’t have cared less about interest rates before, become obsessed with rates while they are in process with a mortgage company. The reality is that, while we’d all love to time the market perfectly, it’s extraordinarily difficult to do. If the loan, at the quoted rate, makes sense – lock it in. Leave the rate prognostication to the bond traders.”

Short Term Loans Now Available to First Time Borrowers

WASHINGTON (MarketWatch) — Federal Housing Administration-approved lenders can now provide short-term loans to first-time borrowers eligible for the $8,000 home buyer tax credit.

But under guidance issued by the Department of Housing and Urban Development late last week, the loans must be on top of — not instead of — the minimum 3.5% down payment normally required on FHA-insured loans.

Buyers can still receive down-payment assistance from their parents, employers, nonprofit groups and certain government entities. But other than that, the down payment must come from their own funds.
Thus, FHA borrowers relying on the lender to finance the tax credit will have to come up with their own money for the 3.5% down payment. But after that, they can use the proceeds from the short-term loans to increase their down payments, cover their closing costs or buy-down their mortgage rate.

HUD did not estimate how many FHA buyers would benefit from tax-credit advances, which cannot result in cash back to the borrowers, cannot exceed the total amount needed for the down payment and closing costs and may not be for more than the anticipated tax credit due the borrowers.

To prevent third-party down-payment assistance outfits from “buying” the tax credit refunds from borrowers, the rules state that the buyer’s down payment may not consist of any funds provided by the mortgagee, the seller or any other person that financially benefits from the transaction. That prohibition specifically includes third-party entities that are reimbursed, directly or indirectly, by anyone benefiting from the deal.

HUD didn’t want to do anything that would allow “these seller-funded schemes back in,” a senior HUD official said at a briefing on the program. The department also plans to monitor the purchase of tax-credit transactions closely, warning that missteps would result in referral to HUD’s Mortgage Review Board, the Federal Trade Commission or the appropriate state attorney general’s office for disciplinary action.

Lending for Foreclosed Properties

Many buyers contact me who are pre-approved and want to buy a foreclosed property so that they can get a great deal. Foreclosed properties range in condition. Some just need some updating while others need structural, sheet rock, floor and other repairs. These homes are usually sold “as is” which means the owner/bank who now owns the property will not make repairs. This is where we get into a catch 22. Conventional, VA, FHA and Rural Development lending require that if there are repairs indicated by the appraiser, structural, termite & EMP report that those repairs be done prior to closing. I have had borrowers want to work on the home and do the repairs themselves prior to closing. This creates several problems. First of all you are trying to make repairs on a property that you do not own. There is a liability issue for the current owner/bank to have someone making repairs on a home they do not own. You can try and find a mortgage lender that offers a FHA 203b mortgage. If you find a lender that still does FHA 203b mortgages then you can buy a home “as is” and finance in repairs depending on appraisal. Be warned this type of mortgages take a lot of time to process and close and involve a lot of paper work. Make sure you give yourself a lengthy contract period to assure closing. The only other option is to obtain a construction mortgage through a banking institution. Construction lending will have their own guidelines for lending but most banks are requiring 20% down. (This will vary for each banking institution.) If you get a construction loan you will have a time frame to make the purchase of the home and make repairs. After repairs are done you could then refinance the home into a permanent 15, 20 or 30 year mortgage.

Why did rates jump so high???

Consumers have gotten so used to hearing about rates below 5% that it is shocking how they could jump from 4.75% on a 30 year fixed rate mortgage up to 5.75%. It seems to have happened overnight!!
Since May 21st the move has been pushing home rates to the highest level since December. Fears of future inflation and added supply have been the culprits behind the recent sell off of mortgage backed securities.

The market volatility is very high and conditions may change rapidly during the day. Remember the market can change daily even hourly. This may make shopping for that perfect rate a little challenging. While lenders may quote a rate in the morning it can change by afternoon depending on market and economic reports and conditions.

With rates going up is it still a good time to buy??? YES! Most consumers have conditioned their mind to think of rates at 4.75% or lower and 5.75% seems unbelievable but remember we are still in historic times for home mortgage rates.

Only 15 years ago in January 1993, the average rate for a 30 year fixed mortgage was 8.12% and 20 years ago in January 1988, 10.55%. Even those rates seem low though when considering the average interest rate for a 30 year fixed mortgage in January 1983 came in at a whopping 13.40%.

There hasn’t been a better time to buy a home or a first time homebuyer with the $8,000 tax credit that is now offered.

How Will my Mortgage Lender Calculate my Income???

When you shop for a mortgage or other loan, one of the key factors a lender will take into consideration before granting approval is your debt-to-income ratio. This is the ratio between how much you owe each month on personal debt and how much you earn. This ratio calculates the percentage of debt you are carrying in relation to how much money you are making and gives lenders a good indication of how much additional debt you’ll be able to handle.

What documentation do I need to present to my lender when pre-qualifying for a home?

If you are a W-2 Wage earner you will need 30 days worth of pay stubs that will show YTD income and last 2 years W-2’s.

If you earn overtime at your current job then you must have consistently been receiving overtime for the past 2 years in order for a lender to count this into your gross monthly income. Overtime must continue. An average of the last 2 years W-2’s and current YTD income will be used to calculate income and overtime.

If you are self employed you need to be self employed for the past 2 years and provide the lender with last 2 years complete tax returns (all pages) If you have an s-corp., c-corp. or partnership then the last 2 years complete tax returns will be required to calculate income. Mortgage lenders look at adjusted gross income plus a few other line items to determine your actual monthly income. Mortgage lending does not go off gross receipts of a business but focus on the amount you actually pay taxes on for calculating gross monthly income.

If you receive child support, you must provide your filed divorce decree. 3 more years of receiving this income must remain for an underwriter to count this income as part as your monthly income. You must also provide 12 months canceled checks to prove that you have been receiving child support income.

If you are a 1099 employee then you are technically self employed because taxes are not taken out of your income. Therefore, just like a self employed individual you must provide last 2 years tax returns.

If you have a job gap over 30 days the your lender may require a letter of explanation be added to the file and if you are starting a new job then at least 30 days of paystubs are required OR your employer must provide an irrevocable contract for the underwriter to review and determine income.

Since income is a big factor in loan approval then I suggest having this information up front at the time of application so you know exactly how much income will be allowed or calculated for your mortgage loan.

Private Mortgage Insurance is Tax Deductible

Congress has extended tax deductions for homeowners paying private mortgage insurance through 2010.
But to qualify for the deduction you must have bought or refinanced your home since Jan. 1, 2007.
Families with adjusted gross incomes of up to $100,000 can deduct 100% of their insurance premiums, much the same as they deduct property taxes. The deduction is then phased out up to an adjusted gross income of $110,000

Mortgage insurance guarantees lenders will be repaid if the borrowers default. It’s almost always required if you hold less than 20% of the equity in your home. Your equity is the difference between your home’s market value and what you owe on your mortgage (and home equity loan, if you have one). The annual premiums run about 0.5% to 0.75% of the outstanding balance, $500 to $750 a year for every $100,000 you owe.

9 Steps to Cancel PMI (Private Mortgage Insurance)

1. Are you qualified? Most people can cancel PMI once equity in their home reaches 20 percent. Some types of loans, such as government insured FHA and VA loans, require PMI for the life of the loan. If in doubt, call your loan servicer to find out your options.
2. Do you have enough equity?
3. Has your home risen in value? If home values in your area are rising quickly, your equity will reach 80 percent more quickly. Mortgage servicers are not required to consider your homes current value but may do so.
4. Have you made extra payments? The other way to add equity is to make extra payments. Have you made any additional payments and applied them to principal?
5. Do the math Estimated value minus mortgage balance = equity.
Equity divided by estimated value = percentage of equity.
If you come up with a figure of 0.20 (20 percent) or greater, and your estimate is accurate, there’s a good chance you can drop PMI and save.
6. Call your lender Talk to someone at your lender’s customer service department to inquire about procedures for PMI removal. The formal request will likely have to be in writing, but calling first might save you some false steps later.
7. Write your lender When you make your written request, ask your lender to provide, in writing, the minimum amount the property will have to be valued at to qualify to have the PMI dropped.
8. Get an appraisal Most lenders require a formal appraisal of property — at your expense — before they will approve a request to drop PMI. Ask your lender if it has any specific requirements for the appraisal or appraiser that must be met. The company, rather than you, might have to order the work, for example, even though you’ll have to pay the tab of approximately $200 to $350.
9. Final precautions Make sure your loan is up-to-date before making the formal written inquiry to your lender. The lender will consider your payment history when deciding whether to drop PMI. Also, if the property has been converted into rental use, higher percentages of equity are required

Using First-Time Homebuyer Tax Credits for the Downpayment

The American Recovery and Reinvestment Act of 2009 (Recovery Act) provides for as much as an
$8000 tax credit to qualified first-time homebuyers. FHA supports this important Administration
initiative to promote homeownership. This mortgagee letter provides:

• Basic information on the first-time homebuyer credit obtained from the Internal Revenue Service (IRS) website. Complete information on how the first time homebuyer tax credit works, including the eligibility requirements for the tax credit, the amount of the tax credit that a first-time homebuyer may be eligible to receive, and how a homebuyer may claim the tax credit is available on the IRS website.

• Guidance on how Federal, state, and local government agencies, nonprofits instrumentalities of government and FHA-approved nonprofits may assist homebuyers that are eligible for the tax credit.

About the First-Time Homebuyer Tax Credit
(Please check the IRS website to ensure you have up-to-date information)
Amount of the tax credit:

Generally, the credit is the smaller of:

• .. $8000 or
• .. 10% of the purchase price of the home

A phase-out of the credit begins when the taxpayer’s modified adjusted income exceeds
$75,000 or $150,000 if married filing jointly, and is eliminated completely at $95,000 or
$170,000 if married filing jointly.
As a “refundable” tax credit, taxes owed by or refunds due to the taxpayer are factored
into the calculation.
Claiming the tax credit:

Filing form IRS 5405 , “First-Time Homebuyer Credit” along with filing:

• The 2008 tax return (if not yet filed)
• An amended 2008 tax return (if already filed)
• The 2009 tax return

Eligibility for the tax credit

• First-time homebuyers, defined by IRS as those not having had any ownership, including that with a spouse if married, during the three-year period ending on the date of purchase.
• Owner-occupants who purchase a principal residence and close on the mortgage before December 1, 2009.
• First-time homebuyers must purchase the property from a source unrelated to them, i.e., they cannot purchase the house from a spouse, parent, grandparent, child, or acquire the property by gift or inheritance and obtain the tax credit.

FHA Guidance
The Tax Credit: Secondary Financing:
Entities that can offer tax credit advances with second liens.

• Federal, state, and local governmental agencies and nonprofit instrumentalities of government.
• FHA-approved nonprofits.

Additional information about these entities:

• Government agencies and instrumentalities of government are described in handbook HUD- 4155.1 REV-5, paragraphs 1-13 A and B.
• FHA-approved nonprofits can be found, per each Homeownership Center jurisdiction, at: http://www.hud.gov/offices/hsg/sfh/np/np_hoc.cfm

How the secondary financing works:

• The tax credit advance, when combined with the FHA-insured first mortgage may not result in cash back to the borrower. The second lien may not exceed the total needed for the down payment, closing costs and prepaid expenses.
• The tax credit advance must provide that if the borrower does not repay the amount borrowed by the designated deadline, that principal and interest payments begin automatically.
• If payments on the tax credit advance are required, they must be included in qualifying the borrower and, when combined with the first mortgage, cannot exceed the borrower’s reasonable ability to pay.
• If payments on the tax credit are deferred, the deferment must be for a minimum of 36 months in order for the payment to not be included in the qualifying ratios.
• The tax credit advance second mortgage must not provide for a balloon payment before ten years.

Entities that can offer the tax credit advance with short-term loans:

• Federal, state, and local governmental agencies and nonprofit instrumentalities of government, FHA-approved nonprofits, and FHA-approved mortgagees may provide short term or “bridge loans” secured only by the anticipated tax credit due the homebuyer as collateral.

How the short-term tax credit advance loan works:

• The amount that may be borrowed in this manner may not exceed the anticipated tax credit due the homebuyer based on the computations of form IRS 5405.
• Fees and charges for the tax credit advance loan are not to exceed a nominal amount necessary for preparing and administering the loan.

If you have any questions regarding this mortgagee letter, please call FHA’s Resource Center at
1-800-CALL-FHA (1-800-225-5342). Persons with hearing or speech impairments may access this
number via TDD/TTY by calling 1-877-TDD-2HUD (1-877-833-2483).

Recession Job Hunt

Recession Job Hunt

Competition for Jobs in a Slow Economy

Veterans discharging from the Armed Services meet new challenges. Job Fair lines are getting longer as unemployment rates climb. Don’t panic/plan to adapt and succeed.

Be versatile, mobile, and plan to go where the jobs are. It’s likely you have full or partial paid move coming, courtesy of Uncle Sam. If you are willing to relocate, and a prospective employer does not have to pay moving expenses; you have become a hot commodity.

Read the papers and explore companies own websites. Focus on new contracts or a company product. This gives you an in, while others are on their way out. Take part time work if it is available, seasonable or temporary. Any of these can help you pay the bills, and possibly get you an audience with the decision makers once the economy revives.

To succeed at a Job Fair, prepare before hand on the position you want. Be prepared to tell a prospective employer how you will mesh with his organization and what skills you will bring to a position.

Research the company for specific openings the employer is looking to fill. Don’t waste time handing out resumes that don’t relate your skills for the job. The goal of job hunting is to get a second interview.

Follow up, get a business card and don’t call, a hand written thank you note, referring to the Job Fair makes you more noticeable. Send a fresh resume on nice paper, and always send a cover letter with every resume.

Companies who are hiring include: Banfield, Farmers Insurance, Gentiva Health Services, ITT Corp, M.A.R.S. International, Pricewaters, Service Master, 7-11, and Quik-Trip. Pick the positions you want, and refine your efforts accordingly, or find a company that looks like the right fit, learning all you can, and fine tuning your approach.

As a military retiree, dedicated to the military personnel and their families, I urge you to contact Coleman White@Jimbigelow.com for all your real estate needs.

Coleman White 918-760-1317

coleman@jimbigelow.com www.jimbigelow.com

Jim Bigelow Bigelow Group Realtors 918-640-4657

www.jimbigelow.com jim@jimbigelow.com

Coldwell Banker Select

What is a Rural Development Mortgage?

What is a Rural Development Mortgage?

Rural Development or also known as USDA Mortgage is a conventional mortgage that offers 100% financing. It can be used for the purchase of a new or existing single-family dwelling. Home must be owner occupied. Mortgage insurance is prohibited. No down payment required. 30 year loan term, fixed interest rate. USDA has a one time 2.0% guarantee fee, which is financed into the mortgage. USDA does not limit seller/builder contributions, however if in excess of 6% they will require an appraisal review.
Eligible Areas:
USDA loans can be made in rural areas, which in clued open country and communities up to 10,000 population, plus communities that are not a part of a Metropolitan Statistical Area with populations up to 20,000. To find out if a property is eligible you can visit http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
Applicant Qualifications:
Minimum 620 credit score. USDA mortgages have household income requirements and cannot exceed the moderate-income level. Contact a local lender to find out the counties median income.
For Example: Tulsa County
1 person = income cannot exceed $40,300
2 person = $46,100
3 person = $51,800
4 person = $57.600
5 person= $62,200

Property Characteristics:
Property must be contiguous to and have direct access to a hard surfaced or all-weather road; gravel is ok. The site value cannot exceed 30% of value. Generally 10 acres is the maximum acreage allowed. If property has an in-ground swimming pool a waiver is required from Rural Development and the swimming pool cannot be included in value of the property.

For more information about Rural Development contact Heather Jobe at First Mortgage 918-496-2241. You can also visit the Rural Development website at www.usda.gov

Heather Jobe / Mortgage Loan Officer
First Mortgage Company 918-496-2241
918-698-8939 hjobe@firstmortgageco.com

Jim Bigelow Bigelow Group Realtors 918-640-4657
www.jimbigelow.com jim@jimbigelow.com
Coldwell Banker Select

What Is Covered – Part C “Medigap” (Supplemental Insurance)

What Is Covered – Part C “Medigap” (Supplemental Insurance)

A Medigap policy is private health insurance sold by private insurance companies specifically designed to supplement the Original Medicare Plan. It Offers:

· Added Coverage – Medigap policies cover certain things that Medicare doesn’t cover.

· Lowers Deductibles & Co-Pays – It helps pay some of the health care costs (”gaps”) that the Original Medicare Plan doesn’t cover.

· Standardized Plans – By law, insurance companies can offer only 12 standardized Medigap benefit packages, referred to as Plans A through L. That means that the only difference in any standardized plan, such as Plan J, from one insurance company to another is the price. The benefits are identical.

· Guaranteed Issue Rights – If you are in your Medigap open enrollment period, insurance companies are required by law to sell or offer you a Medigap policy. In these situations, an insurance company can’t deny you a Medigap policy, or place conditions on a Medigap policy, such as exclusions for or existing conditions, and can’t charge you more for a Medigap policy because of past or present health problems. You may also be able to buy a Medigap policy at other times, but the insurance company is allowed to deny you a Medigap policy based on your health. Also, in some cases it may be illegal for the insurance company to sell you a Medigap policy (such as if you already have Medicaid or a Medicare Advantage Plan).

· Guaranteed Renewable – Your insurance company must automatically renew or continue your Medigap policy, unless you make untrue statements to the insurance company, commit fraud, or don’t pay your premiums.

· Medigap policy only covers one person – If you and your spouse both want Medigap coverage, you each must buy separate Medigap policies.

· Every insurance company must make Medigap Plan A available if they offer any other Medigap policy.

· Not all types of Medigap policies may be available in your state. (e.g Massachussets, Minnesota, or Wisconsin).

· Medigap plans A – J must offer the following basic benefits:
Co-insurance for hospital days 61-90 – ($267/day in 2009) and
– Co-insurance for the 60 lifetime reserve days ($534/day in 2009).
– 100% of the cost of hospital care beyond 150 days covered by Medicare, up to a maximum of 365 lifetime days.
– 20% Co-insurance for Medicare approved charges after the $135 annual Part B Medicare deductible has been met.
– The first 3 pints of blood in each calendar year.
– Plan A has only the basic benefits.

The following Chart recaps Medigap coverage.

· If a check mark appears in the column, this means that the Medigap policy covers 100% of the described benefit.

· If the column lists a percentage, this means the Medigap policy covers that percentage of the described benefit.

· If no percentage appears or if the column is blank, this means the Medigap policy doesn’t cover that benefit.

· The Medigap policy covers coinsurance only after you have paid the deductible (unless the policy also covers the deductible).

Click Here for Medigap Plan A thru L Benefits info

*Medigap Plans F and J also offer a high-deductible option. You must pay the first $2,000 (high-deductible in 2009) in Medigap-covered costs before the Medigap policy pays anything.

** You must also pay a separate deductible for foreign travel emergency ($250 per year).

*** After you meet your out-of-pocket yearly limit and your yearly Part B deductible ($135 in 2008), the plan pays 100% of covered services for the rest of the calendar year.

Medicare Advantage Plans

These Plans provide all of your Part A (Hospital Insurance) and Part B (Medical Insurance) benefits and must cover at least all of the medically necessary services that the Original Medicare Plan provides. Medicare Advantage Plans, like HMOs and PPOs, are another way to get Medicare benefits. These plans are health plan options approved by Medicare and run by private companies.

Medicare Advantage Plans may offer extra benefits, such as vision, hearing, dental, and/or health and wellness programs, and most include Medicare prescription drug coverage (usually for an extra cost). Medicare Advantage Plans generally have provider networks. This means you probably have to see doctors who belong to the plan or go to certain hospitals to get covered services. You may need a referral to see specialists.

Medicare Advantage plans include:

· Medicare Preferred Provider Organization Plans (PPO)
A PPO is a specific group of doctors and/or hospitals that provides medical services. PPO members pay for services as they are rendered.

Are prescription drugs covered?
In most cases, yes. Ask the plan. If you want drug coverage, you must enroll in a PPO plan that offers prescription drug coverage.

Do I need to choose a primary care doctor?
No.

Can I get my health care from any doctor or hospital?
Yes. PPOs have network doctors and hospitals, but you can also use out-of-network providers for covered services, usually for a higher cost.

Do I have to see a primary care doctor to get a referral to see a specialist?
In most cases, no. What else do I need to know about this type of plan? You may be able to get extra benefits for an additional premium.

· Medicare Health Maintenance Organization Plans (HMO)

HMOs provide medical treatment on a prepaid basis regardless of how much medical care is needed. HMOs provide a wide variety of medical services, from office visits to hospitalization and surgery. With a few exceptions, HMO members must receive their medical treatment from physicians and facilities within the HMO network.

Are prescription drugs covered?
In most cases, yes. Ask the plan. If you want drug coverage, you must enroll in an HMO plan that offers prescription drug coverage.

Do I need to choose a primary care doctor?
Yes. You generally must see a primary care doctor to get a referral before you see any other health care provider.

Can I get my health care from any doctor or hospital?
No. You generally must get your care and services from doctors or hospitals in the plan’s network (except emergency or urgent care). If the plan has a point-of-service option, you can go out-of-network, but it will cost more.

Do I have to see a primary care doctor to get a referral to see a specialist?
In most cases, yes. Exceptions include yearly screening mammograms and in-network Pap tests and pelvic exams (at least every other year), which don’t require a referral.

What else do I need to know about this type of plan?
– If your doctor leaves, your plan will notify you, You can choose another doctor in the plan.
– If you get health care outside the plan’s network, you may have to pay the full cost.
– It’s important that you follow the plan’s rules, like getting prior authorization when needed.
– You may be able to get extra benefits for an extra premium.

· Medicare Private Fee-for-Service Plans (PFFS)

PFFS is a Medicare Advantage health plan offered by a state licensed risk bearing entity, which has a yearly contract with the Centers for Medicare & Medicaid Services to provide beneficiaries with all their Medicare benefits plus any additional benefits the company decides to provide. In most cases, people who join a PFFS are not required to use a network of providers. Beneficiaries can see any provider who is eligible to receive payment from Medicare and agrees to accept payment from the PFFS MAO.

Are prescription drugs covered?
Sometimes. If your PFFS Plan doesn’t offer drug coverage, you can join a Medicare Prescription Drug Plan to get coverage.

Do I need to choose a primary care doctor?
No.

Can I get my health care from any doctor or hospital?
In most cases, yes. You can go to any Medicare-approved doctor or hospital if they agree to the plan’s terms and conditions of payment before treating you. Not all providers will accept the plan’s payment terms or agree to treat you.

Do I have to see a primary care doctor to get a referral to see a specialist?
No.

What else do I need to know about this type of plan?
PFFS Plans aren’t the same as the Original Medicare Plan and they have different rules from other Medicare Advantage Plans.
– PFFS Plans are offered by private companies. The private company, not Medicare, decides how much the plan will pay and how much you pay for services.
– You may be able to get extra benefits for an extra premium.
– Before you join a PFFS Plan, make sure you find doctors, hospitals, and other types of providers willing to contact the plan for payment information and accept the plan’s payment terms.

· Medicare Special Needs Plans (SNP)

SNPs serve certain people with Medicare who are chronically ill with specific diseases or conditions (such as diabetes, congestive heart failure, mental illness, or HIV/AIDS), who live in institutions like nursing homes, or who have other special needs.

Are prescription drugs covered?
Yes. All SNPs must provide Medicare prescription drug coverage. Formularies may be designed to cover the drugs members need most.

Do I need to choose a primary care doctor?
In some cases, yes, or you may need to have a care coordinator help you develop personal care plans and coordinate your care.

Can I get my health care from any doctor or hospital?
You generally must get your care and services from doctors or hospitals in the plan’s network (except emergency or urgent care). Plans typically have specialists for the diseases or conditions that affect their members.

Do I have to see a primary care doctor to get a referral to see a specialist?
In most cases, yes. Yearly screening mammograms and an in-network Pap test and pelvic exam (at least every other year) don’t require a referral.

· Medicare Medical Savings Account Plans (MSA)

MSAs are two-part health insurance programs consisting of a high-deductible health insurance policy and a tax-free investment account set up to fund medical costs not covered by the policy.

Are prescription drugs covered?
No. You can join a Medicare Prescription Drug Plan to get drug coverage.

Do I need to choose a primary care doctor?
No.

Can I get my health care from any doctor or hospital?
Yes. Some plans may have network doctors and hospitals you could go to for a lower cost.

Do I have to see a primary care doctor to get a referral to see a specialist?
No.

What else do I need to know about this type of plan?
– if the year is added to your next deposit.
– Medicare MSA Plans have two parts: a high-deductible health plan and a bank account. Medicare gives the plan an amount each year for your health care, and the plan deposits a portion of this money into your account.
–You can use the money in your account to pay your health care costs. When you use account money for Medicare-covered Part A and Part B services, it counts toward your plan’s deductible. After you reach your deductible, your plan will cover your Medicare-covered services.

· If You Join a Medicare Advantage Plan:

You are still in the Medicare Program.You still have Medicare rights and protections, including the right to appeal.

You still get Part A and Part B coverage.

You generally still pay the monthly Part B premium. You also pay the Medicare Advantage Plan’s premium (if they charge one) that includes coverage for Part A and Part B benefits and prescription drug coverage (Part D, if offered), and any extra benefits (if offered).

You may have to use providers who belong to the plan. If you use providers who aren’t in the network, you may have to pay the entire cost of the covered service.

You must follow plan rules, like getting a referral to see a specialist or getting prior authorization for certain procedures. Check with the plan.

You usually will have to pay some other costs (such as copayments, deductibles, or coinsurance) for the services you get. Out-of-pocket costs in these plans cary by the services you get. Check with your plan before you get a service to find out what your costs may be.

You don’t need to (and can’t) buy a Medigap policy . It won’t cover your Medicare Advantage Plan deductibles, copayments, or coinsurance.

If you see a doctor who doesn’t belong to the plan, your services won’t be covered, or your costs could be higher.

The plan will send you an Evidence of Coverage each year. This document gives you details about what benefits the plan will cover, how much you pay, how to file an appeal, and more. Plan benefits may change each year. The plan will send you an Annual Notice of Change each fall. This notice has information about any changes in benefits, costs, or service area that will be effective in January. If the plan covers prescription drugs, the notice will include changes to the formulary. You should review this notice carefully to learn about changes for the upcoming year to decide if you want to look at other plans in your area.

Medicare offers prescription drug coverage for everyone with Medicare. This coverage is called “Part D”.

· To get Medicare drug coverage, you must either join a Medicare drug plan adding on to your Original Medicare Plan, or join a Medicare Advantage Plan that includes Part D.

· Medicare drug plans are run by insurance companies and other private companies approved by Medicare.

· Each plan can vary in cost and drugs covered.

· If you decide not to join a Medicare drug plan when you are first eligible, you may pay a late-enrollment penalty if you choose to join late.

· If you qualify for extra help and don’t choose a plan yourself, Medicare will enroll you in one.

All Medicare drug plans must generally cover at least two drugs in each category of drugs, but plans can choose which specific drugs are covered in each category. Plans are required to cover almost all drugs in six classes that include anti-psychotics, anti-depressants, anti-convulsants, immunosuppressants, cancer, and HIV/AIDS drugs.

There are certain drugs that Medicare drug plans aren’t required to cover, such as benzodiazepines, barbiturates, drugs for weight loss or gain, and drugs for erectile dysfunction. Some plans may choose to cover these drugs as an added benefit. In addition, drug plans generally aren’t allowed to cover over-the-counter drugs. Some states may cover these drugs if you have Medicaid.

Plans may also exclude certain drugs from coverage. Although your Medicare drug plan may not have a certain drug on its list of covered drugs (formulary), a different drug that is safe and effective for the same purpose will be covered. This may be a generic version of the drug, or it may be another brand-name drug that may provide the same benefit as the drug that isn’t on the plan’s formulary. All plans must have a process for you to ask them to pay for a drug you need that isn’t on their formulary. They may or may not agree to cover the drug.

What Is Not Covered

Items and services that Medicare doesn’t cover include, but are not limited to the following:

· Acupuncture,

· Chiropractic services (with some exceptions),

· Cosmetic surgery,

· Custodial care (such as help with bathing or using the bathroom), except when you also get skilled nursing care in a skilled nursing facility, at home, or in a hospice,

· Deductibles, co-insurance, or co-payments when you get certain health care services,

· Dental care and dentures (with only a few exceptions),

· Eye care (routine exam), eye refractions (exam that measures your ability to see at specific distances), and most eyeglasses (with some exceptions),

· Foot care (routine) like cutting corns or calluses (with few exceptions), Hearing aids and exams for the purpose of fitting a hearing aid, Hearing tests that haven’t been ordered by your doctor,

· Laboratory tests for screening purposes (with some exceptions), Long-term care, for example, if you only need custodial care in a nursing home,

· Orthopedic shoes (with few exceptions),

· Physical exams (routine or yearly). Medicare will cover a one-time physical exam within the first 6 months of enrolling in Part B (co-insurance and Part B deductible applies),

· Prescription drugs. Most precription drugs aren’t covered by Part A or Part B, Shots to prevent illness (with some exceptions),

· Syringes or insulin, unless the insulin is used with an insulin pump, but it may be covered by Medicare Prescription Drug Coverage (Part D), and

· Travel (health care while you’re traveling outside the United States… with some exceptions).

Medigap policies don’t cover long-term care (like care in a nursing home),

Jim Bigelow 918-640-4657

www.jimbigelow.com jim@jimbigelow.com

Coldwell Banker Select

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