Apr
Question:
Is there an interest -only five year loan available?
Answer:
Fannie Mae recently eliminated all interest only programs with an interest only period of less than 10 years. That means that the 5/1 ARM must be interest only for 10 years even though the rate can adjust once a year beginning the 6th year.
Apr
Question:
Can I get a loan if husband’s credit is below 620?
Answer:
Lindsey is correct, most lenders will not allow under 620 on FHA loans at this time. What may be a viable option is have a reputable lender look at your husbands credit report and see what it would take to bump that score a little. It could be as simple as paying down a credit card or two to under 50% of the available credit limit.
I would be wary of loan officers saying they can “absolutely” do an FHA loan under 580 - it would be an exception to get it done.
Apr
Question:
I could lock in a refinance rate today of 4.6 for 30 yr. fixed, but I hear rates are falling lower.?
Answer:
Lynda and Tammy have both offered great advice. It sounds like at 4.65% there are discount points associated with this rate.
The only thing I would add to expand your options is if you plan on being in this loan for 7-10+ years, you may want to have your lender run some ROI numbers on buying the rate down even further.
You should be able to at least reach 4.25%. However, there may be a point where the cost outweighs the benefit.
Apr
Question:
Quick snapshot of our situation: 1st balance of 120K @ 5% fixed. 2nd balance of 32K @7.99%. Auto loan with balance of 13K @ 6%. Credit card balance 13K @ 0% until Jan 2010. Also have some medical bills coming in at the tune of 5-6K and a kiddo starting colege this fall. Combined income of 70-75K. Savings of around 30K. I want to consolidate some debt with a refi, but not sure if that is the smart thing to do. The savings is a great source of comfort to me so I want to leave that alone in case an emergency should arise. We have about 9 years left on our 1st mortgage and 14 left on our 2nd. Any advice would be greatly appreciated.
D
Answer:
Congrats for taking the first step and gathering more information before making a decision. The answer to your question will not come from a lender but from a further analysis of all of the benefits of each scenario you have presented.
Its important to identify all of your goals that you wish to accomplish and then prioritize them. For example, refinancing your first and second mortgage into loan terms longer than what you have remaining will result in cash flow relief that may significantly improve or contribute to the easing of these challenges now, ie… college tutition, credit cards bills. However, by doing so you would need to look into the long term cost by extending your current loan term.
I typically advise that you put the numbers on paper so that you make an accurate analysis of the positives and negativess of any desicion you would make. Weigh that, then against your goals as you have prioritized them and you have the recipe for an educated and informed desicion making process.
Good luck 
Apr
Question:
Hi,
Could you provide me the details you need from me to provide me the GFE ?
Thanks
Answer:
The good faith estimate can be a tricky and sometimes misleading document. It is often times used as an advertising technique featuring too good to be true rates and fees to attract borrowers.
The good faith estimate was created to disclose to potential borrowers the types of costs that may be associated with a loan. There is no requirement that the lender provide accurate or accurate costs on the GFE.
If you truly want an accurate good faith estimate you should first narrow down the lenders you wish to work with and that you trust will be ethical and transparent with the actual costs associated with the loan.
Once you have identified the lenders you will work with, getting a loan approval is the surest way to receive accurate costs.
Typically, a lender will require the following documentation for an approval:
Last 30 days pay stubs for all borrowers
Last 2 years W2’s or tax returns when required
Asset documentation covering the last 60 days
You will also want to complete the loan application as well as perform a credit check as your credit score may affect the cost of the loan as well.
Hope that points you in the right direction
Apr
Home Buyer Question About Home Buying Assistance Programs - Trulia Voices
If you or your spouse/co-buyer are a member of CalPERS, CalSTRS or are employed by a California public school,school district or community college there are home buyer and down payment assistance programs available.
Good luck on your home search
Apr
The June 2009 deadline was for the $7,500 tax credit that was introduced last year. Beginning January 1,2009 this tax credit was increased to $8,000 and now expires on November 30, 2009. Here is a link that will give you some more information as well as a link to the IRS website.
Apr
Congrats on taking advantage of this forum and taking the approach of educating yourself about the home buying process so that you can make informed decisions along the way. Your very first statement about understanding the process beginning to end will give you alot more confidence about making the right decisions about whom to work with.
When it comes to interest rates that is one of the final steps in home buying process. It was common in the past for mortgage lenders to lure home buyers and home owners by advertising low interest rates. This tactic is often misleading and can be deceiving.
For the most part any honest and ethical lender will educate you on the process and explain to you how to determine what rates are available to you depending on what program you qualify for and the terms of your approval. Interest rates generally do not vary greatly from one ethical lender to the next. More important than shopping for a rate is interviewing a lender and finding someone who makes you comfortable and educates you on the process and one that you trust.
As far as locking the interest rate you would not be able to lock in a rate until you have a purchase offer accepted and property addressed to associate with the loan. Your loan officer would be able to advise you about the current state of the market at that time and could advise you to lock or float.
The very first step in educating yourself in the home buying process is to understand the finance options and getting approved for the purchase of a home. I recommend you interviewing several loan officers at different lenders.
I would propose your opening sentence to this question “I am a first time home buyer. I have questions and need help in understanding the loan process from start to end”as your question to prospective loan officers and sit back and listen to which one who seems like they are looking out for your best interest and taking the time to educate you on the process.
Anyone who boasts about their experience ,interest rates, or market conditions will stand out to those in contrast to those who truly have your best interest in mind.
Hope this helps
Apr
California Association of Realtors CAR - Housing Affordability Fund Mortgage Protection Plan
Mortgage Protection Program for First Time Home Buyers
YouTube VIDEO
POWER POINT PRESENTATION
On Thursday, April 2, 2009 the Housing Affordability Fund has launched a new program designed to provide peace of mind to first-time buyers who are hesitant to enter the housing market due to concerns about potential job loss, and subsequently being unable to meet their monthly mortgage obligations.
To qualify for the Mortgage Protection Program, applicants must:
- Be a first-time home buyer – someone who has not owned a home in the last three years.
- Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009
- Use a California REALTOR® in the transaction
- Purchase the property in California
- Be a W-2 employee (cannot be self-employed)
- Must be submitted by an active California REALTOR® to apply
CLICK HERE - For Frequently Asked Questions
CLICK HERE - For a copy of the Mortgage Protection Plan Application
CLICK HERE - To see schedule of upcoming free homebuyer education web-classes
CLICK HERE - For “Dream Home Finder” and California Association of REALTORS® Agent Referral
CLICK HERE - To get more information about getting Pre-Approved for a home purchases loan
CLICK HERE - For more information about the $8,000 & $10,000 Federal and State Tax Credits
Mar
Did you “Hire” A Real Estate Agent - Or did you just end up with one?
Because the home buyer typically is not responsible for paying the Buyer’s Agent, it is difficult for most buyers to feel comfortable demanding a high level of expertise and performance from the agent.
Many buyers feel a sense of loyalty because the Agent drives them around and shows homes, or sends emails of homes for sale, and are not comfortable demanding a high level of expertise and professionalism beyond this.
This results in a default “hiring” out of guilt (they did something for you and it cost you nothing) and it is difficult to fire an Agent that is not doing a good enough job.
An inexperienced or unprofessional Agent can still write an offer and maybe even get one accepted - but it will be a much more difficult and challenging experience than you deserve.
Finding the right Agent to work with is just as important as finding the right lender, sometimes even more important. It many times means the difference in getting your offers accepted or not. This can cost you greatly in both time and money.
Don’t know what to look for in an Agent? You can start by attending our “Hiring a Real Estate Agent” class. We pull no punches in laying out the responsibilities and fiduciary duties owed you in an Agency relationship with a Real Estate “Professional”.
Do NOT leave “Hiring an Agent” to chance or circumstance - Educate and Empower yourself in the home buying process by making sound and informed decisions about who to work with.
Don’t know where to start? Let me introduce you to an agent we work with, know and trust.
Click Here: Real Estate blueBird Agent Referral
Don’t take our word for it though….interview prospective Agents, call their references (recent buyers) - Do your homework! Then make an informed decision.
Hope this helps! Happy house hunting
