Mortgage

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.

Mortgage

Exclusive Offer: Job Loss Protection Program

We at the Jim Bigelow Group realize that times are hard and that many homeowners are facing layoffs. That is why we, with Coldwell Banker Select, are the only company in Oklahoma that are offering a Job Loss Protection Program, that will pay your mortgage for up to six months if you involuntarily lose your job. Below is the official press release that outlines the plan. If you have any questions regarding this program please email me at jim@jimbigelow.com.

August 3, 2009 :: Tulsa, OK- The Jim Bigelow Group, part of Coldwell Banker Select, , is the only company in Oklahoma offering the Rainy Day Foundation’s Homeowner Education and Loan Protection service (HELP), which is designed to assist homeowners with their mortgage in the event that they lose their employment. This mortgage protection program will enable homeowners to have security in an economically turbulent time. Coldwell Banker Select, specifically the Jim Bigelow Group, is the only company in Oklahoma offering this Job Loss Protection Program.

In the current economic environment many Americans are concerned with job stability and how they are going to make their mortgage payments if they lose their job. The unemployment coverage included in the Rainy Day Foundation’s HELP service assists in keeping homeowners current on their mortgage payments each month so homeowners can minimize their financial stress while they are looking for a job. The Mortgage Protection Program is designed to provide up to six months of mortgage payment if the borrower becomes involuntarily unemployed. The enrollment process is easy and can cover up to $1800 per month.

When asked about his enthusiasm for the program, Bigelow stated, “We want to ensure that the homeowners that buy with us are taken care of.”

About the Bigelow Group:
The Jim Bigelow Group is a leading Tulsa real estate group that serves the greater Tulsa metropolitan area. Their marketing ensures maximum exposure to the homes listed. For Tulsa home buyers, they will help you to locate exactly the home that fits all your criteria and needs.

Mortgage

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

Mortgage

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.

Mortgage

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.

Mortgage

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.

Mortgage

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.”

Mortgage

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.

Mortgage

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.

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.

Mortgage

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.

Mortgage

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

Mortgage

New Safety Net for Unemployed Homeowners

New Safety Net for Unemployed Homeowners

Car dealerships everywhere are blaring the incentive of payment protection plans, offering to cover car payments up to an amount for a certain period of time, should a borrower lose his job.

First Mortgage Company has launched a similar initiative on April 28, 2009.

The company will pay homeowners’ monthly loan payments for up to six months if the homeowner becomes unemployed within the first two years of the loan.

The program, Job Loss Payment Protection, covers payments of up to $1,800 per month, if one of the signers on the loan loses his or her job.

“Home prices are affordable, interest rates are the lowest they’ve been in decades, and first-time buyers get an $8,000 tax credit,” says George Akers, executive vice president of First Mortgage Company. Akers says the only reason people may not buy now is fear of losing their jobs — although, most industry insiders say fear of unemployment, albeit an overwhelming concern, is just one cause of hesitation for potential homebuyers in the current economy.

Nonetheless, Job Loss Payment Protection offers a safety net for those whose main drawback to homeownership is the fear of job loss.

The program is available to all new First Mortgage Company customers applying for FHA, VA, and USDA loans. The program covers the monthly loan principal, interest, taxes, and insurance. First Mortgage said it hopes the program serves as a tool for Realtors and builders to help sellers provide added value to their home and buyers feel more secure in their decision to purchase a home.

Job Loss Payment Protection is available at all locations in  greater Colorado Springs, Colorado; Boise, Idaho; Omaha, Nebraska; Tulsa and Oklahoma City, Oklahoma; Amarillo, Dallas-Fort Worth and Eagle Pass, Texas; and Puyallup, Washington.

FOR MORE DETAILS CALL ME TODAY!!!

hjobe@firstmortgageco.com 

918-496-2241 x230

Jim Bigelow    Bigelow Group  Realtors  918-640-4657

www.jimbigelow.com                jim@jimbigelow.com

Coldwell Banker Select

 

 

 

Mortgage

Oklahoma Bond Money is Back!!

Oklahoma Bond Money is Back!!
Owning a home is a goal for most families. More often families face the obstacle of lack of funds for down payment and closing costs. Oklahoma Bond Money is available statewide and offers down payment and closing cost assistance. The state has Targeted Areas and Non-Targeted Areas designated by the U.S. Department of Treasury in Washington, D.C. using census statistics. Mortgage loans made in Non-Targeted Areas require the borrower be a first-time homebuyer. A first-time homebuyer cannot have any home ownership interest in his primary residence for the last three years. Mortgage loans made in Targeted Areas do not have first-time homebuyer requirements.
Oklahoma Bond is issuing funds starting 4/28/09 at 10:00 A.M. Oklahoma Bond works in conjunction with the following type of mortgages, FHA, VA, Rural Development and HUD-184.
Oklahoma Bond money offers up to 3.5% of down payment/ closing cost assistance. This could mean first time homebuyers could walk in with little money down and have the dream of homeownership.
$31,000,000 has been issued to the state of Oklahoma and it can be used in ANY county in the state of Oklahoma.
There are a few requirements for bond money:
1. You must be a first time homebuyer. (A first time homebuyer is someone who has not owned property in the last 3 years) Your lender will require last 3 years of tax returns to prove you have not owned property.
2. Minimum credit score must be 620 or above.
3. There are income restrictions. A borrower must not exceed $57,600 for 1-2 person family and $66,240 for 3 + family. Income is calculated off gross income vs. net income.
4. Interest rate is set by the Oklahoma Bond and has been issued at 5.83%. This rate is 30 year fixed mortgage and it cannot be bought down lower.
5. You must work with a lender who is approved to work with Bond Money.
6. Maximum sales price for new construction or an existing home is $189,682.
You must occupy the purchased home as a primary residence. You must purchase a home no later than 8/14/09. Funds are limited so they could run out of funds prior to 8/14/09. If you have been thinking about buying a home…. now is the time. This program is allowed to be used and get up to $8,000 tax credit.
For more information you can visit www.ohfa.org or contact Heather Jobe at First Mortgage Company at 496-2241 x 230.

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

Mortgage

American Recovery/Reinvestment Act of 2008

American Recovery/Reinvestment Act of 2008

First time home buyers purchasing any kind of home, new or resale are eligible for the tax credit. To qualify a home purchase must occur on or after January 1, 2009 and December 2009. The purchase date is when closing occurs, and the title to the property transfers to the new home owner.

For married tax payers, this law test the home ownership of the buyer and his/her spouse. For example: if you have not owned a home in the last three years, but your spouse owned a principal residence, neither you or your spouse qualifies for the tax credit.

However, unmarried joint purchasers can allocate the credit amount to any buyer who qualifies as a first time home buyer.

Ownership of a vacation home or rental property does not qualify as a first time home buyer.

The tax credit is equal to 10 percent of the purchase price up to a maximum of $8,000 dollars.

The income limits for single tax payers is $75,000 and the limit for married tax payers is $150,000 filing a joint return.

This tax credit does not have to be repaid. You claim the tax credit on your Federal Income Tax return. Home buyers should complete IRS Form 5405 to determine their tax credit amount, and claim this amount on line 69 of their 1040 income tax return. No other forms or applications are required, and no approval is necessary.

Any home that will be used as a principal residence will qualify for the credit. The tax credit is refundable, which involves the government sending the tax payer a check for a portion or maybe all of the refundable tax credit.

For qualified veterans 100 percent financing is available through VA Guaranteed Loan Program. Veterans with 100 percent disabilities, certified by the Veterans Administration as service connected are eligible for property exempt status in the State of Oklahoma.

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

Mortgage

what type of mortgage works best for you

Step 1: Figure out what type of mortgage works best for you

I have forever advised sticking with a 30-year fixed-rate mortgage, and paying extra on the principal every month to pay it down more quickly. Yes, the rate will be slightly higher than a 15-year mortgage.

A 15-year mortgage comes with lower rates and slightly higher monthly payments that will save you a fortune in interest if you plan to stay in your home. But if you want flexibility, you can get the same advantage by making extra principal payments on a 30-year loan.

Step 2: Understand fees, costs

While most people focus on the interest rate, your true cost must include all fees and charges. When comparing deals, you’ll need to make sure you’re comparing all the costs. Some brokers proclaim there are “no closing costs.” But you can be sure they’re not working for nothing!

Instead, they’ve rolled these costs — appraisals, title search and legal fees — into the interest rate you’re paying. So a loan with a 6.25 percent fixed rate and no closing costs might not be as attractive as a loan at a lower rate with modest closing costs. A lender should give you a “good-faith” estimate of all costs.

You can pay “points” upfront to lower the interest rate. Each point is equal to 1 percent of the loan amount. So on a $100,000 loan, one point is equivalent to $1,000. If you pay “points” to get a discount on your interest rate, that amount may be tax deductible. Given today’s volatile mortgage market, it’s probably not advisable to pay points to reduce your rate. If you decide to refinance at a lower rate in the future, you’ll have “wasted” the money you paid for the points on your old loan.

Step 3. Start your search

The radio advertisements are coming back — promising easy deals, no costs and low rates. But how will you know you’re getting a good deal if you don’t do some comparison shopping? That’s easier than ever today with online tools.

Just remember that every Web site makes money in some way by getting credit for your business. Some want you to register so mortgage brokers can contact you. Others are a source of “leads” for just one mortgage company. You’ll probably have to give some personal information to get a quote. But don’t give out your Social Security number until you are ready to make a deal.

Beware of online mortgage rates and services.  When making one of the biggest investments in your life you want to consider a local lender where you can meet them face to face.

Step 4: Get it in writing!

You should get  a “good-faith” estimate of all costs and fees. It’s a little late to reiterate this advice, but if you’re thinking of getting an adjustable rate mortgage, ask for a written example of how high the monthly payment could go, and when, if interest rates escalate in the future! If you have any questions, get the answers in writing. And if you’re doing a re-fi, check the wording of your original loan to make sure you are not subject to penalties for prepayment. As always, if you’re in doubt, consult an attorney who specializes in real estate law.

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

Mortgage

VA Home Loans/No Money Down

VA Home Loans/No Money Down

Implosion of nations housing market has put countless distressed properties on the market for far less than they were worth several years ago. Military retires searching for a place to launch a second career are uniquely positioned to take advantage of this attractive buyers market through The Department of Veterans Affairs Home Loan Program.

Last year approximately 135,000 veterans, active duty, and survivors received loans at nearly 24 billions dollars.

Home loans are more affordable for veterans, active duty members, and some surviving spouses by protecting lenders from loss if the borrower defaults on their home loan. The VA’s guarantee takes the place of a down payment, and allows the buyer to purchase the home with no down payment.

The latest statistics show that more than 29 million veterans and service personnel are eligible for VA financing. The current loan limit for home purchase under the program is $417,000 (up to 625,000 in Alaska, Hawaii, Guam, and Virgin Islands).

VA does not secure loans, the buyer has to find a lender, bank or mortgage company that is willing to do that. Once the loan is arranged the VA can step in with its guarantee.

You must apply to the VA to be certified as eligible for the program. Contact the VA Service Officers, who are trained professionals, but remember they are not realtors or mortgage loan officers.

If you are looking to purchase a home: The current market situation makes this time ideal to use your VA home loan eligibility and it’s your right as a veteran.

Always remember our motto: “Think Freedom” “Thank a Vet”.

If your plans are to relocate to a State that honors veterans, and the service they provided to our freedom then Oklahoma is ok for you.

Complete information on eligibility application procedures is online at www.homeloans.va.gov or call toll free at (800) 827-1000.

Please feel free to contact me at ColemanWhite@Jimbigelow.com. “Your Time Realtor” for all your real estate needs. As a loyal, devoted, and honest real estate professional, with group strength in excess of 30 years of real estate experience and over 34 web sites to market and accommodate your real estate needs.

Coleman White 918-760-1317

coleman@jimbigelow.com www.jimbigelow.com

Jim Bigelow 918-640-4657

www.jimbigelow.com jim@jimbigelow.com

Coldwell Banker Select

Mortgage

Mortgage Monday 3/23/2009

MARKET COMMENT

Mortgage bond prices rose last week applying downward pressure on mortgage interest rates. The bond market got a boost from the Fed announcement (read below) to buy more mortgage debt. There was some profit taking in bonds Thursday afternoon following the run-up in prices Wednesday. Higher than expected core readings of the consumer and producer price indices reignited some inflation concerns. The Fed’s continued efforts to pump money into mortgage bonds helped keep mortgage interest rates favorable. For the week, interest rates on government and conventional loans fell by about 1/2 of a discount point.

The Treasury auctions will once again take center stage this week as additional debt supply hits the market. Durable goods orders and consumer sentiment data will be important.

LOOKING AHEAD

Economic Indicator	Release Date and Time	Consensus Estimate	Analysis
Existing Home Sales	Monday, March 23, 10:00 am, et	Down 0.8%	Low importance. An indication of mortgage credit demand. A significant decrease may lead to lower rates.
2-year Treasury Note Auction	Tuesday, March 24, 1:30 pm, et	None	Important. Notes will be auctioned. Strong demand may lead to lower mortgage rates.
Durable Goods Orders	Wednesday, March 25, 8:30 am, et	Down 2.0%	Important. An indication of the demand for “big ticket” items. Weakness may lead to lower rates.
New Home Sales	Wednesday, March 25, 10:00 am, et	Down 2.9%	Important. An indication of economic strength and credit demand. Weakness may lead to lower rates.
5-year Treasury Note Auction	Wednesday, March 25, 1:30 pm, et	None	Important. Notes will be auctioned. Strong demand may lead to lower mortgage rates.
Q4 GDP final revision	Thursday, March 26, 8:30 am, et	Down 6.6%	Important. The aggregate measure of US economic production. Weakness may lead to lower rates.
7-year Treasury Note Auction	Thursday, March 26, 1:30 pm, et	None	Important. Notes will be auctioned. Strong demand may lead to lower mortgage rates.
Personal Income and Outlays	Friday, March 27, 8:30 am, et	Down 0.1%, Outlays up 0.3%	Important. A measure of consumers’ ability to spend. Weakness may lead to lower mortgage rates.
U of Michigan Consumer Sentiment	Friday, March 27, 10:00 am, et	56.0	Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.

ADDITIONAL FED MONEY

Last week the Federal Reserve announced it would pump another $750 billion into purchasing more mortgage-backed securities, the bonds that directly dictate 30 year and 15 year fixed rate Government and Conventional mortgage interest rates. This is in addition to the $500 billion being used between January and June to drive mortgage interest rates lower and help stimulate the economy.

So far the Fed has been able to keep mortgage interest rates relatively low while not destroying the functioning secondary market where investors buy and sell mortgage bonds. The potential negative is that the Fed has become the primary purchaser of these bonds. In the short term take advantage of these advantageous rates. There is uncertainty how things will play out once the Fed begins to unwind those positions in the futures.

Heather Jobe

First Mortgage Company

Office: (918) 496-2241

Cell (918) 698-8938

Jim Bigelow    918-640-4657

www.jimbigelow.com                jim@jimbigelow.com

Coldwell Banker Select

 

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