Archive for January, 2010

Things not to do when applying for a home loan

January 18, 2010 1 comment

Usually First Time Home Buyers Don’t know all the “rules” of what to do or what not to do during the home buying process.  Here is a short list of “Don’ts” for you to look at when applying for financing for your new home.

THE  DON’Ts!!!  

Don’t deposit CASH into your bank accounts!
Please call your loan officer BEFORE you deposit any funds!

Don’t buy or lease an auto!
Lenders look carefully at your debt-to-income ratio. A large payment such as a car lease or purchase can greatly impact those ratios and prevent you from qualifying for a home loan.

Don’t move assets from one bank account to another!
These transfers show up as new deposits and complicate the application process because you must disclose and document the source of funds for each new account. The lender can verify each account as it currently exists. You can consolidate your accounts later if you need to.

Don’t change Jobs!
A new job may involve a probation period, which must be satisfied before income from the new job can be considered for qualifying purposes.

Don’t buy new furniture or major appliances for your “new home!”
If the new purchases increase the amount of debt you are responsible for on a monthly basis, there is the possibility this may disqualify you from getting the loan, or cut down on the available funds you need to meet closing costs.

Don’t close credit accounts or consolidate bills!
Capacity is King. The more available credit you have,The better your credit score.

Don’t pack or ship information needed for the loan application!
Important paperwork such as W-2 forms, divorce decrees, and tax returns should not be sent with your household goods. Duplicate copies take weeks to obtain, and could stall the closing date on your transaction.

Your Real Estate Agent and Loan Officer may have more things you should not do when looking for your dream home, so give me a call today.


Should I sign a Buyer’s Agency Agreement?

January 9, 2010 Leave a comment
As a First Time Home Buyer, you need a professional Buyer’s Agent working to find and secure your dream home. Just like when you have a doctor for healthcare or an accountant to help with your finances. Your real estate agent will take care of the hassles of everyday real estate transactions for you. Agents exclusively represent your interests as they help you find a home, present your contract offer, negotiate, and close on your home.  You Get a personal specialist who understands your home ownership needs.  In addition, your Buyer’s Agent will listen to your feedback and concerns about each home.
The advantage of signing a Buyer’s Agency Agreement is that you will have a professional agent working to find and secure the ideal home for you. You won’t need to spend endless evenings and weekends driving around looking for homes or trying to search websites .  When you tour homes with your professional Buyer’s Agent, you will already know that the homes meet your criteria and are within your price range.
Entering into a Buyer’s Agency Agreement has countless advantages. When you sign the agreement, you are simply agreeing to “hire” a personal representative who, by law, must represent your best interests to the best of his or her ability. All of this personal service is generally available at absolutely NO COST TO YOU!  In the state of Pennsylvania, the Seller’s Agent is responsible for paying your Buyer’s Agent fee. So, you get a professional agent devoted to protecting your needs and to helping you make one of the most important investment decisions of your life, and usually for free.
Call me today, so that we can start looking for your dream home.

Why Should You Buy A Home?

January 4, 2010 Leave a comment

Here are several great reasons to buy a home:

Quality of life – a home provides stability and security for you and your loved ones.

Pride of home ownership – it’s your personal haven and you’re your own landlord.

Historically low-interest rates – around 5.5 percent in the U.S.

Tax Credit – U.S. government provides a special $8,000 incentive for qualifying first-time buyers.

Appreciation potential – your home investment can grow in value.

Equity buildup and debt pay down – homeowners enjoy an average net worth of approximately $184,000 vs. $4,000 for renters.

Leverage – where else can you buy an investment of this magnitude with 5-10 percent down?

Tax deduction advantages – property tax and mortgage interest write-offs (in Canada, home owners gain a tax benefit upon selling).

Tax exemption – up to $500,000 per couple or $250,000 per person on sale of a primary residence in the United States (no tax upon sale in Canada).

The real cost of renting – at $800 per month, with the average 6 percent rental increase per year, you will pay $126,536 over a 10-year period but have zero ownership of the property.

Mortgage Interest Rates On The Rise

January 3, 2010 Leave a comment

The last  week of  December 2009 ends with mortgage interest rates on the rise.  The average interest rate on a 30-year, fixed-rate mortgage (FRM) rose to 5.14 percent according to Freddie Mac’s weekly Primary Mortgage Market Survey (PMMS).   

The current average 30-year FRM, at 5.14 percent, is up from 5.05 percent last week, and up from 5.10 percent a year ago.  The 15-year FRM this week averaged 4.54 percent with an average 0.7 point, also up from last week when it averaged 4.45 percent, but down from year ago at this time, when the 15-year FRM averaged 4.83 percent.

The 5-year Treasury-indexed hybrid ARM (adjustable rate mortgage) averaged 4.44 percent this week, with an average 0.6 point, nearly unchanged from the 4.40 percent average last week, but more than a full percentage point below 5.57 percent from a year ago.

The week ending Dec. 31, the 1-year Treasury-indexed ARM averaged 4.33 percent, plus an average 0.6 point. Last week the rate was 4.38 percent. Last year, the 1-year ARM averaged 4.85 percent.

Start the New Year off right.  Give me a call today for more information.  Let’s start looking for your dream home.