Mortgage Interest Rates hit historical lows !!!!

I am sure many have been hearing that mortgage interest rates are historically low in the last few days. It seems like in the last few years we have heard this and in many cases, it was just a marketing ploy to get the phones to ring.  Well, as of this week, they have hit their lowest peak since interest rates have been tracked as far back as 1971.

So why are interest rates so low?  Some investors on Wall Street fear a double dip recession approaching. And these investors will seek more stability in buying bonds, such as the MBS's, Mortgage Backed Securities.    Just today, the consumer confidence index dropped from 62.7 in May to 52.9 in June.  As many of us know, usually when the Stock Market drops (loses points), interest rates tend to get better, and vice verse. Another reason for the interest rates being much lower is because of the European market and the Chinese market growing slowly which affects the U.S. Markets.

Here some economic data reports that are due out this week : These reports could very well affect rates this week. I think the most important report would be the Jobs Report on Friday.

Monday, June 28: Personal Spending, Personal Consumption and Expenditures and Core PCE, Personal Income.

Tuesday, June 29: Consumer Confidence

Wednesday, June 30: ADP National Employment Report, Chicago PMI and Crude Inventories. LAST DAY FOR TRANSACTIONS TO CLOSE TO QUALIFY FOR THE HOME BUYER TAX CREDIT.

Thursday, July 1: Initial Jobless Claims, ISM Index and Pending Home Sales

Friday, July 2: The Jobs Report

                                                                   Mortgage Interest Rate Outlook

Mortgage Interest Rates have gained some momentum yesterday and today, which is why we have seen the lowest interest rates in such a very long time. My fear is that I think they have edged themselves to the top per se, and have been holding strong, but that we are due for a slight correction. We have seen this take place several times in the last 6 to 12 months, just when interest rates seem to be going lower, they will creep up a few ticks or so.

Overall, I would float cautiously in the next 3 to 5 days, but for the long term, I would think rates still hold steady. Meaning that they will continue to be low in the next 30 days, but could be a tad higher than what we are experiencing now.

Word to the WISE :

Depending on your credit scores and LTV (loan-to-value), interest rates are any where from 4.25% to 4.75% for a 30 year fixed rate. If you see individuals and or mortgage companies offering mortgage interest rates at 4% or lower, there could be many points and or lender fees involved.  What is being sold off on Wall Street right now are the 4.0% coupons.  Just be careful in what someone might tell you or promise you.

Interest rates are low... don't play with the market and try and get 4% or lower. If you can, lock in now.

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- FHA Loans - USDA Loans - VA Loans -

- Energy Efficient Mortgages - 

- Conventional Loans - 203 k loans -

- FHA Home Loans - Mortgages -

Experience & Knowledge at its BEST !!!

Follow me on:

_____________________________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors

Copyright © 2010 by Jeff Belonger of Infinity Home Mortgage Company, Inc

In Part 1, I provided some background info on what happens with most mortgages after the close of escrow and in Part 2, I explained what depository lenders were and some of the pros and cons of those types of lenders.  In Part 3, I want to continue with explaining the different types of lenders.  At this time, I would like to explain the types of lenders that only engage in mortgage lending. 

While there are advantages and disadvantages of using any type of lender, working with lenders that focus on nothing but mortgage loans can be much more beneficial to you as both a homebuyer and/or homeowner.  The two most common types of these organizations are mortgage bankers and mortgage brokers. 

For starters, mortgage bankers and brokers tend to be smaller, privately owned companies that are more attuned to their local market.  Mortgage bankers and brokers may also have direct relationships and reputations with a variety of local companies and agencies that the big, behemoth, national, retail banks don't have. 

These relationships and reputations can sometimes be the one thing that many prospective homeowners, especially first time buyers, are often in need of and are looking for in their lender. 

So what's the difference between mortgage bankers and mortgage brokers? 

Mortgage Banker:  A mortgage banker is not regulated as a federal or state bank and does not take deposits from consumers.  Mortgage bankers will often have many different sources of loan options, in addition to their own small suite of loan products, in which they can offer their borrowers.  Mortgage bankers will often fund some of their loans through their own warehouse line of credit. 

Like most lenders, mortgage bankers will also sell their loans off to the secondary market after the close of escrow.  Mortgage bankers also employ their own underwriters in order to maintain control over some of their loan transactions.  However, because mortgage bankers are selling their loans off to the secondary market after the close of escrow, their loans must adhere and be underwritten in accordance to the rules, regulations and guidelines for the loan program as well as the government sponsored enterprises (GSE). 

When selling loans on the secondary market, mortgage bankers will earn a servicing release premium (SRP) for allowing the secondary market investor to service the loan.  This SRP rate is not disclosed to the borrower. 

Mortgage Broker:  Mortgage brokers are organizations that originate loans on behalf of other lenders.  One of the best advantages of a mortgage broker is their ability to shop around for the best loan option for a particular borrower in order to meet a particular mortgage need.  Mortgage brokers typically have dozens and dozens of lending options available to offer their clients.

Mortgage brokers typically deal with wholesale lending institutions (who do not work directly with borrowers) as well as direct lenders and portfolio lenders.  I will explain what wholesale lenders are in an upcoming post.  Consequently, mortgage brokers do not have to employ underwriters but rather work very closely with the underwriters for the wholesale, direct and/or portfolio lenders that they contract with.  Mortgage brokers also do not fund and/or service their loans. 

However, because the loans that mortgage brokers are originating will be sold off to the secondary market after the close of escrow, mortgage brokers loan packages must be originated and processed in accordance to the rules, regulations and guidelines for the loan program as well as the GSE. 

After the close of escrow, before the mortgage is sold off to the secondary market, mortgage brokers will earn a loan origination fee that they must disclose to the borrower, which makes mortgage brokers fees much more transparent than the fees of any other type of lender.  Mortgage brokers do not earn an SRP like other lenders who do not have to disclose this fee to the borrower making the fees of other types of lenders much less transparent to the borrower. 

The mortgage loan originators (MLO) that work for mortgage bankers and mortgage brokers must be licensed in accordance with the Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act. 

This means that MLO's for mortgage bankers and brokers must adhere to any upfront and/or any annual continuing education in order to continue originating loans.  They also must submit to any federal and state testing in order to measure their education, knowledge and/or experience in the mortgage industry. 

MLO's for mortgage bankers and brokers must also be subjected to FBI background checks, they must be finger printed and they also must agree to personal credit checks.  Furthermore, there is a national complaint mechanism for reporting unethical and/or illegal activities on MLO's for mortgage bankers and mortgage brokers. 

MLO's that work for mortgage bankers and mortgage brokers are much more regulated and monitored than the MLO's that work for banks who do not have to be licensed, tested, finger printed and or checked and monitored. 

Stay tuned for Part 4 where I discuss a few other types of lenders in the mortgage industry.

CHOOSING YOUR LENDER: How Do You Know Which Lender is Right for YOU! - Part 1 

CHOOSING YOUR LENDER: How Do You Know Which Lender is Right for YOU! - Part 2

CHOOSING YOUR LENDER: How Do You Know Which Lender is Right for YOU! - Part 4

CHOOSING YOUR LENDER: How Do You Know Which Lender is Right for YOU! - Part 5

CHOOSING YOUR LENDER: How Do You Know Which Lender is Right for YOU! - Part 6

Silverado Ranch May 2010 Real Estate Resale Market Report (Homes For Sale, Pending, Sold):

• Listings (6/15/2010):  161
• Under Contract (6/15/2010):  228
• Sold May 2010:  61

Since last month:  Listings are UP +24, Under Contract DOWN -19, Sales are DOWN -7.  The Silverado Ranch Area is Currently Enjoying a Seller's Market.

Read Last Month's Report Here

Junk fees on a home loan. What an ambiguous term. So many fees are mistakenly classified as home loan junk fees including fees that are bona fide. Mortgage loan fees nationwide amount to roughly 110 billion annually. You may wonder why that figure is so high to do a home loan.

With each loan that funds there are multiple people working to complete the loan transaction whether the loan is from a bank or a broker. Here is a list of the titles of people who are always involved in each and every home loan:

* a loan processor

* loan officer assistant

* escrow officer

* title insurance company

* appraiser

* appraisal management company

* underwriter

* underwriting assistant

* lenders account executive

* funder

* doc drawer

* county recorder

* courier

It amazes me how many banks provide good faith estimates without listing all of the fees associated with a home loan. Little does the consumer know that they make money to cover these fees by giving out higher interest rates. That higher rate can amount to more money spent on a loan than if the borrower would have paid the fees themselves.

If you hear your neighbor brag about how they got a no fee loan remember this: A sucker is born every minute in this country and nobody works for free.

California home loans since 1977

First Priority Financial is licensed by the California Department of Real Estate #00654852 Nevin#01366552

2990 Jamacha Road #136 El Cajon CA 92019

(888) 206-5781

Also licensed in Oregon, Washington & North Carolina

*Certain credit and income restrictions apply. Call us for more details.

This is not a guarantee to lend. Equal housing lender.

Rhodes Ranch Area Resale Market Report (homes for sale, pending and sold):

• Active Listings (6/15/2010): 193
• Under Contract (6/15/2010): 449
• Sold May 2010: 95
• Low:  $60,000 (Apache Hills Condo)
• Median:  $138,000 (Durango Springs)
• High:  $390,000 (Rhodes Ranch)

Rhodes Ranch Area Rental Market Report (homes for rent, contingent, leased)

• Active Listings (6/15/2010):  78
  
• Under Contract (6/15/2010): 29
  
• Leased May 2010:  62
  
• Low:  $700/month (Vistana)
• Median:  $1195/month (Canyon Trail)
• High:  $3850/month (Rhodes Ranch)

How to read my market reports (definitions and terms!)

Last Month's Market Report

Includes: Apache Hills, Apache Springs (The Falls), Astoria Homes at Rhodes Ranch
(Independence), Canyon Trail, Huntington, Liberty @ Warm Springs, Maplewood, Rhodes
Ranch, Richmond@ Rhodes Ranch, Sierra Madre, Venezia, Vistana.

For More information & most current market report on the Rhodes Ranch Area:  http://www.livingatrhodesranch.com/

View Rhodes Ranch Area in a larger map

Here is what buyers received in seller paid concessions on April 2010 Las Vegas Area (Henderson - N Las Vegas - Las Vegas) Closes:

• Less than $500:  66% ($500 only buys you a home warranty or (no and) an appraisal)
• Between $501-4000:  19%
• Over $4001:  15%

This pretty much means that sellers aren't giving up much of anything since Las Vegas is a Seller's Market and in dire need of sellable inventory!  Inventory levels are rising just slightly and we are seeing some movement/improvement in this sector which is good news, especially for buyers who want/need closing costs!

Last Month's Concession Stand

Potential sellers wonder often if they should list their home with a big nationally recognized franchise or a top producer real estate agent.  This is their choice.  Big brands may tell you that your home will be found on their big brand site that (insert impressive number) of buyers search on there every month.  Truth being told, those are IDX (Internet Data Exchange) sites.  No matter who you list with (small independent or big brand), as long as you agree to IDX on your listing agreement, you will end up on all big brands' sites for (insert impressive number) of buyers to search on!

When you list your home, with most agents, you will also be entering a "cooperating agreement" to cooperate and allow other brokerages to show sell your home.  Odds are a listing agent is NOT going to sell your home, a cooperating (aka buyer or selling) agent is going to sell your home!  Your basic strategy knowing this now, is going to be to find the agent most competent to showcase your home in the best light to net you top dollar!

Do not automatically throw out the small independent brokerage agents because you may be throwing out the baby with the bath water!

Here are some important interview elements and ALL should be included with each individual's listing packet that you interview with:

What is your negotiating experience?  I have been self employed since the age of twenty.  This means that I have had to negotiate half my life.  I have fine tuned communication skills and I am aggressive but not nasty or mean.  I do use an assistant but my assitant does not get near my contracts or negotiations.

What is my bottom line?  I have an interactive net sheet which includes all closing costs uploaded into google docs for your scenario.  I put in what you can realistically expect to net from the sale of your home and you can play with it any which way you would like and add or subtract closing costs, potential sale prices, etc.  This way there are no surprises in the end.  You receive the netsheet in the beginning and for every offer that is received, as each scenario is different.

What are trends with homes selling in my city and subdivision?  I will show you absorption trends (inventory trends) for your city all the way down to your subdivision.  It includes something called "absorption rate" (which will show inventory trends if inventory is rising or shrinking.)  This should be used also in conjunction with pricing.

What should I list my home for?  I provide a comprehensive CMA (Comparative Market Analysis) should be included during that interview.  I go over this along with the home sales trends.  If you interview SEVERAL agents do not give the job directly to the highest bidder, spend several days looking at all the numbers and go with the price that make the most sense.  I have performed over 1000 BPOs since 2007.  BPOs are "Broker Price Opinions" and help banks determine list pricing.  I pride myself with this experience to get the home "priced right the first time".  I will also never take a listing that is priced too high because I know it will NOT sell and I have just wasted my time!

What is your marketing plan?  A marketing plan is an outline on what a Realtor does and what exposure you receive for listing your home with them.  If they say they list it on social networks such as Active Rain, Twitter or Facebook - ask how many friends or followers they have for that exposure!  Here is a snapshot of my marketing plan:

• Active Rain Network:  Over 730 subscribers that are real estate professionals around the country, syndicated to well over 50 syndication sources which includes blogburst - I have had listings published through Reuters and the Sun-Times Network through blogburst!
• Twitter:  Over 500 Followers
• Facebook:  Almost 1300 Friends
• Real Estate Shows:  This not only provides a platform for a virtual tour but it is also search engine friendly and syndicates to:  google base, oodle, trulia, zillow, vast, hotpads, geebo and dothomes.  I also take a couple extra minutes to upload your virtual slideshow to youtube & craigslist through this resource.
• Vflyer:  I have a paid subscription with Vflyer (many agents use the free area).  This gives me a great widget that I use on my website (scroll to the bottom of every page), my blog (look on the sidebar) and facebook that showcases my listings for all visitors at those sites.  Vflyer also syndicates to:  yahoo, hotpads, trulia, zillow, kijiji, backpage and front door.  Again, I take a couple of extra minutes to add your listing to craigslist.
• Point2Agent:  Another portal for listing syndication!  This one has over 30 syndication sources plus a search engine for buyers! 
  
• BNI:  I am a member of Business Network International and your listing will get a full minute of exposure and in front of business owners who may have a client that may be interested in purchasing your home!
• The "Typical":  Of course you get "the typical" stuff that goes with every listing:  MLS input (with IDX syndicating to Realtor dot com, big brand websites, all IDX websites that are a member of Greater Las Vegas Association of Realtors,)  Sign, Color Flyers.
• AND MORE:  Yes there is more but this post is getting out of control already ;)
  

What do you charge?  My fees depend on what price point the home is listed for + a cooperating commission.  You may be surprised how relatively inexpensive it is to list a home with all those goodies described above - especially if the home is over $150K!

What is Your Experience?  I have closed listing experience in the probate/estate, REO (bank owned), standard/fair market sale, HAFA for veterans, divorce.  I do not work short sales HOWEVER you may still contact me for a referral to a competent short sale agent.

Google & Internet:  Print is OUT and Viral & Social Internet Marketing is IN and it WORKS!  I give your home exposure on major social networking sites.  It is important to google the following three elements when you are interviewing an agent:

• Name (Renee Burrows)
• Phone numbers (702-966-2494)
• Email addresses (411@ReneeBurrows.com)

This can help buy you a clue to see who “gets” the new wave of viral & social web marketing and who doesn’t!

Please feel free to contact me with any questions at 702-966-2494 or 411@ReneeBurrows.com if you are thinking about listing your Las Vegas, Henderson or North Las Vegas Area Home for Sale.

In Part 1, I provided some background info on what happens with most mortgages after the close of escrow.  The reason I started with this is because I wanted to show that regardless of what kind of lender you choose to get your loan from or the mortgage loan originator (MLO) you choose to use, almost all loans these days are sold off to the secondary market after the close of escrow. 

Having your loan sold after the close escrow and who actually services your loan really isn't that important - really it's not!  What is important is the origination of the actual loan transaction and the MLO you choose to originate your loan.  However, if where your loan ends up is important to you, you will be limited to pretty much one type lender. 

When it comes to the various types of lenders that a buyer has available there are a few different options and every one of them has their pros and cons.  I'd like to start off with depository lenders, which are lenders that engage in other types of banking and lending operations besides just mortgage lending. 

So what kind of lenders are depository lenders? 

Portfolio Lender:  Local credit unions as well as savings & loan companies are quite often portfolio lenders, as well as some banks.  A portfolio lender will typically use the funds that they have from deposits from their customers to lend to borrowers.  Portfolio lenders generally promote their own small suite of loans that consist of just a few loan products.  They hold their loans in-house and do not sell them off to the secondary market right after the close of escrow.  Many borrowers may find that this is a really nice benefit to using a portfolio lender. 

Furthermore, the decision makers for loan approval, the underwriters, work directly for the portfolio lender, this way the portfolio lender has more control over the loan process.  Additionally, it may also be easier to qualify for a portfolio loan because a portfolio lender is not bound by the rules, regulations and guidelines of government sponsored enterprises (GSE's) or the lender overlays of any other types of private investors. 

However, borrowers using a portfolio lender will most certainly pay a premium rate for these benefits because portfolio lenders are typically not as competitive in rates as other types of lenders who do sell their loans off to the secondary market after the close of escrow. 

Lastly, portfolio lenders may elect to sell their portfolio loans at some later date once a loan has become seasoned.  At this point, they become just like every other loan sold off to the secondary market - they are packaged as mortgage backed securities (MBS) and sold off to either a GSE or a private investor.  In some cases, the portfolio lender may likely retain servicing rights, which means the borrower may still send the mortgage payment to the portfolio lender. 

Direct Lender:  Direct lenders are usually your local community banks or the large, national, retail lenders (BofA, Wells Fargo, Chase, etc...) that are typically promoting their own small suite of loans that consist of just a few loan products.  Direct lenders will fund these loans either through their assets or their customers deposits or through the use of a warehouse line of credit. 

This type of lender is lending directly to the borrower.  However, unlike the portfolio lender, a direct lender typically will sell the loan off to the secondary market after the close of escrow.  By selling their loans off to the secondary market after the close of escrow, direct lenders are able to offer more competitive rates than the portfolio lender who is not selling their loans off to the secondary market. 

The direct lender also employs underwriters who work directly for them so that the lender has more control over the loan process.  However, because direct lenders are selling their loans off to the secondary market after the close of escrow, their loans must adhere and be underwritten in accordance to the rules, regulations and guidelines for the loan program as well as the GSE or any private investor. 

When selling loans on the secondary market, a direct lender will earn a servicing release premium (SRP) for allowing the secondary market investor to service the loan.  This SRP rate is not disclosed to the borrower.

The MLO's that work for depository lenders are not required to be licensed in accordance with the Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act. 

This means that these types of MLO's are not required to adhere to any upfront and/or any annual continuing education in order to continue originating loans.  They also do not have to submit to any federal and state testing in order to measure their education, training, knowledge and/or experience in the mortgage industry. 

MLO's for these types of lenders are also not subjected to FBI background checks, they're not finger printed and they also do not have to agree to personal credit checks.  Furthermore, there is no national complaint mechanism for reporting unethical and/or illegal activities on MLO's for depository institutions as there are for SAFE Act licensed MLO's. 

Stay tuned for Part 3 where I discuss the other types of lenders that are not depository lenders and that engage in only mortgage lending.

CHOOSING YOUR LENDER: How Do You Know Which Lender is Right for YOU! - Part 1

CHOOSING YOUR LENDER: How Do You Know Which Lender is Right for YOU! - Part 3

CHOOSING YOUR LENDER: How Do You Know Which Lender is Right for YOU! - Part 4

CHOOSING YOUR LENDER: How Do You Know Which Lender is Right for YOU! - Part 5

CHOOSING YOUR LENDER: How Do You Know Which Lender is Right for YOU! - Part 6

Welcome Home To GATED NW Las Vegas Community:  Whitehorse Estates!

• 109 Single Family Detached Homes
• Ranging from 2742-4861 Square Feet
• Built from 2005 to *PRESENT* by US Home/Lennar Builders
  

Whitehorse Estates Community Amenities Include:  Gated Community & Greenbelt/Common Area.

Whitehorse Estates homes are large executive style homes.  Some of the homes feature casitas and some of the garages are supersized to fit up to 4 cars.  Lots are extremely large and some are even up to a half an acre!

If you are considering buying or selling in the Whitehorse Estates Community Please Call:  702-966-2494.  We will be happy to give you a full CMA and a list of current listing inventory of homes for sale in the subdivision.

View Whtiehorse Estates in a larger map

"HOUSTON, we have a major problem with all of these homes upside down"  "People need to put more money down!!!"

Just the other day, a borrower asked this question on Trulia.

What is the difference/advantages between other FHA loan lenders and the lenders approved for the NJ First-Time Homebuyer Program ?

Response by a realtor : "it is probably not wise to buy a house with 3% down anyway. In my opinion, putting 3.5% down is akin to no down payment at all, and that is what got the housing market into trouble in the first place, among other things. Putting 3% down in a declining market will leave you upside down in a few months."  

STOP - It's an opinion, but I think it's a horrible opinion.

So Mr. Realtor, you are saying if I put 10% down, then it would have saved many homes from being upside down and possibly many foreclosures?  Or even 20% down? A home buyer then came in and commented. She said :

"That's ridiculous. It’s quite possible for a buyer to have enough resources to handle any major repairs that may arise but still not have enough for a “serious” (I’m assuming you mean 20%) downpayment.

On a $350,000 home a “serious” downpayment would be $70,000.

Even if the buyer had the worst home inspection in the world and had to replace the roof ($20K), the furnace ($6k) and the water heater ($3K) within the first year. The cost of all of those repairs plus the 3.5% downpayment would be around $41,000 which is almost $30K less than the 20% downpayment."

My opinion on the borrowers statements?  There is some truth to this comment.  Read further.

I replied to this realtor and to the home buyer's comment.  Here is what the realtor then said.

My Opinion : I don't have a problem with opinions, but it's the opinions often given in the real estate sector that are just thrown out there because you want to be made as the savior of the end to all real estate crap that has taken place in the last 2 to 3 years.

My Take on this ongoing issue of upside mortgages and adequate down payments when it comes to FHA loans. (please read my two articles below, because they will give you details and good opinions expressed by some very good real estate professionals)

• The real estate mess in the last 2 years was not due to those that used FHA loans and put 3.5% down or even 2.25% down as a down payment.

• Bad economy overall - sorry to sound negative, but many people have lost jobs, it's a fact, and this has caused many of the foreclosures.

• What about those bad loans, such as the stated loans aka liar loans, when not verifying income? Did many of these foreclose?

• Equity position - The argument by this one real estate agent is that if you use a FHA mortgage and put the minimum down, you will be underwater very soon.  Okay, that could be true depending on your appraised value, but let me ask you this.  Why are you buying the home in the first place.  And many people will live in their home for at least 6 years. Food for thought... If you put 10% down and had to sell in 2 years, you will be close to breaking even anyhow, because you normally will be paying a real estate commission of 6%. Again, focus on why you are buying a home.

• Down payment monies - You can get monies in the form of gifts from family members and or grants from the state or counties. It's out there.
  

Summary :  Overall, if you are in the market for a home, you feel secure about a specific mortgage payment, and have spoken to a qualified professional loan officer that has gone over your assets and has explained the process to you, then you should be fine. I have a set of questions to ask a borrower, including their goals. One of my main concerns outside of your mortgage payment is to make sure that you have some reserves left over. I would rather have you put less down and keep more money in your pocket, even if you have 10% down. Sorry, but this makes more sense, even when using FHA loans with 3.5% down. Please just don't be scared of comments such as the ones above. Please read :

• Jeff Belonger's top 10 questions.

• Cash is KING - A larger down payment might not always be your best solution.
  

UPDATE : The beginning, after Houston, we have a problem... I am against large down payments for many reasons. This should not be the reason not to buy a home. 3.5% down can work and has in the past.

There is still an underlying value in home ownership that does not involve dollars and cents.

- This is an excellent article by Richard Weisser. It's more than just buying a home.  Thanks Richard..

The Government at one time last year was pushing that all FHA loans have a mandatory 5% down. I wrote a series of articles on this :

• FHA loans to 5% down? No seller concessions allowed? Rumors? - The government at its BEST again !!!!  10-02-09
  

• I WANT your SKIN in this game !!! Give it up !!!   10-07-09
  

_____________________________________________________________________________________________________

                                                                                                           FOLLOW ME ON FACEBOOK

- FHA Loans - USDA Loans - VA Loans -

- Energy Efficient Mortgages - 

- Conventional Loans - 203 k loans -

- FHA Home Loans - Mortgages -

Experience & Knowledge at its BEST !!!

Follow me on:

_____________________________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors

Copyright © 2010 by Jeff Belonger of Infinity Home Mortgage Company, Inc

You've decided to take the leap into the current real estate market and make the move to buy a home.  For many of you, it will be your first home and for others it may be a larger home (after selling your current home).  For some, it may even be a second home where you and your family plan to spend vacations. 

Whatever the need, unless you have a boatload of cash to make your purchase, you already know that the first thing you need to do is talk to a lender and find out how much you can afford to buy. 

So who do you talk to?  For some, you may talk to the mortgage professional who did your last mortgage and if you were happy with the service that you received from that person and you've stayed in touch with each other over the years, that is most certainly a good place to start. 

However many of you will either not have a previous mortgage professional that you have an established relationship with or you were not pleased with the service of the previous mortgage person you worked with.  So what do you do?  You find a new Mortgage Loan Originator (MLO) to talk to but where do you find someone like this?

The best place to find an MLO to talk to is to ask people you know, trust and respect if they know a really good MLO.  Ask your friends, relatives, co-workers, neighbors and especially ask anyone you know who has recently purchased a home.  This folks is one of the best ways to find a good MLO.  I will address the steps to choosing a good MLO in more detail in an upcoming post. 

Once you have done this, you're probably going to get a whole list of people from a variety of different organizations.  Some will work for a direct lender and some will work for a mortgage banker and others a mortgage broker.  While there are pros and cons to working with each one of these types of organizations, the most important part of the equation to remember here is that the actual MLO who will be originating your loan file/package can be the person who can make or break your entire loan transaction.  Once again, I will go into greater detail on this topic in an upcoming post. 

On that note, let's get a little background information out of the way because there are some things that are characteristic of most mortgages these days regardless of where they are originated and who originates them.  First and foremost, virtually most mortgage loans originated today are sold off to the secondary market shortly after the close of escrow.  The only exception here is with portfolio lenders, however, even portfolio lenders can eventually sell their loans to the secondary market.  I will explain this in more detail in an upcoming post

So what does this all mean?  This means that regardless of where you decide to go to get your mortgage loan, the company that you decide to go with will more than likely NOT be the company that will be servicing your loan; the company where you will be sending your monthly payments to. 

Furthermore, depending on what type of loan product you get, the same program guidelines for that loan product will apply to every loan and every borrower regardless of whether they are working with a direct lender, a mortgage banker or a mortgage broker. 

For example, if you are getting a conventional loan, in order for your lender (regardless of what kind of lender they are) to be able to sell your loan to a government sponsored enterprise (GSE) in the secondary market so that it can be packaged as a mortgage backed security (MBS), the loan must adhere to certain guidelines.  The same goes for government loans; in order for the government agency to be able to package the loan into an MBS as well as insure your loan, your loan has to be originated, processed, underwritten and funded in accordance to the government agencies guidelines, regardless of where you go to get the loan. 

The three major GSE's in today's secondary market are Federal National Mortgage Association (aka Fannie Mae), Federal Home Loan Mortgage Corporation (aka Freddie Mac) and Government National Mortgage Association (aka Ginnie Mae). 

With the exception of Ginnie Mae, GSE's purchase mortgage loans from lenders so that the lenders have additional funds to lend more money to new borrowers.  At this point, I want you to remember one thing about this stage of the process:  "if a lender can't sell it, they won't fund it - period".  Once again, with the exception of some portfolio lenders.

Furthermore, there will also be additional guidelines that are applied to your loan transaction that must be adhered to in order for your lender to be able to sell your loan on the secondary market to a specific investor.  These additional guidelines are called "lender overlays".  Different lenders will often have different overlays depending on the investor that they will be selling your loan to after the close of escrow. 

I know this all sounds confusing, especially since you just wanted to know how to choose a lender.  While this can be confusing to most buyers looking for a lender, it is info that is good to know in order to understand what's important when choosing a lender.  While it may seem like where your loan ends up at is really important and for some it may be, the more important thing to consider is how the lender and MLO you choose is going to benefit you in buying a home? 

Please stay tuned for Part 2 where I will outline some of the various types of lenders and MLO options that buyers have available to them today.

CHOOSING YOUR LENDER: How Do You Know Which Lender is Right for YOU! - Part 2

CHOOSING YOUR LENDER: How Do You Know Which Lender is Right for YOU! - Part 3

CHOOSING YOUR LENDER: How Do You Know Which Lender is Right for YOU! - Part 4

CHOOSING YOUR LENDER: How Do You Know Which Lender is Right for YOU! - Part 5

CHOOSING YOUR LENDER: How Do You Know Which Lender is Right for YOU! - Part 6

Age Restricted (55+) Communities are scattered throughout the valley.  Many offer a variety community amenities for Seniors who enjoy active lifestyles.

Sun City Anthem is located in the Anthem Area of Henderson, NV (zip 89052 and 89044).  There are 7312 Homes in Sun City Anthem ranging from 1080-4567 Square Feet.  Community Amenities Include:  Community Golf, Gym, Pool, Spa, Tennis, Clubhouse and Recroom

Sun City Anthem Market Report:

• Listings (6/15/2010):  124
• Under Contract (6/15/2010):  88
  
• Sold May 2010:  24

Since Last Month's Report:  Listings DOWN -11, Contracted Escrows UP +10, Solds DOWN -16.  Sun City Anthem is currently enjoying a seller to stable market.

Renee Burrows carries the SRES (Senior Real Estate Specialist) Designation and has Probate and Estate experience.  If you need a referral to a Probate or Estate lawyer, please contact me!

Seniors Real Estate Specialists® are REALTORS® qualified to address the needs of home buyers and sellers age 50+. The SRES® Council awards the SRES® Designation to those members who have successfully completed its education program.

By earning the SRES® designation, your REALTOR® has demonstrated necessary knowledge and expertise to counsel clients age 50-plus through major financial and lifestyle transitions involved in relocating, refinancing, or selling the family home. Your REALTOR® has received special training, gets regular updates, and is prepared to offer the options and information needed in making life changing decisions.

For Last Month's Sun City Anthem Market Report Click Here

For Most Current Sun Cities Market Report Click Here

Even though Michelle does not work in the Las Vegas Area:  Information still pertains to the LV Market and is very important for buyers to know!

Comments Disabled, Please go to Michelle's Post to Comment:

As the housing sector kept sucking for more oxygen, Washington announced back in February the Hardest Hit Fund worth $1.5 billion that was designed to help states in serious housing peril and asked them at the time, as a condition to get a slice of the money, to submit creative programs that would lend a hand to homeowners struggling with mortgage payments. The plans from Arizona, California, Florida, Michigan and Nevada have now been okayed by the Treasury and the assigned funds are ready to begin flowing to the states' Housing Finance Agencies, or HFA, tasked to administer their use.

California drew the largest share at $699.6 million, Florida got $418 million, Michigan $154.5 million, Arizona $125.1 million and Nevada $102.8 million. Apparently the split was based largely on population size, which certainly is one way to do it.

A fairer method might have been to look at the current mortgage foreclosure rate in each state, in which case Nevada - with Las Vegas as its much-pummeled real estate meltdown epicenter - would have picked up a bigger portion of the proceeds. Negative equity measure, or being underwater, would be another metric that could have been used here. Again, Nevada would have ranked right up there for more funds than what it now received.

Each state presented its own innovative program for mortgage borrower relief, but a few predictable items appear on everyone's list. The most prevalent one is principal reduction, something that all address in a variety of ways. It clearly is the key in any plan, government or private, to stabilize housing markets from Florida to Nevada and beyond. The Obama Administration is putting increasing emphasis on it, but its actions need more support from mortgage lenders who so far have been reluctant to do much about it.

Unemployed homeowners get help to meet their mortgage obligations while looking for work is another popular feature. As is the assistance to handle the complexities of a second mortgage that may be hindering loan modification or any other real estate transaction, like a short sale.

Hardest Hit Fund will have a second phase later this year, covering the next tier of states lured into the now infamous mortgage and real estate backwater. It will bring some relief to a still festering housing situation, but for a real impact to be achieved the private sector needs to step up to the plate with a hot bat.

Who knows how they will decide who has the ability to pay or not.  This is an interesting twist to events!

Comments Disabled:  Please go to Harry D'Elia's blog to comment:

Mountain's Edge May 2010 Real Estate Resale Market Report:

• Listings (6/15/2010):  189
• Under Contract (6/15/2010):  391
• Sold May 2010:  90

Since Last Month:  Listings are UP +19, Pendings are DOWN -24, Sales are DOWN -2

Last Month's Mountain's Edge Real Estate Market Report

Mountain's Edge is a newer community so many of the listings are short sales or bank owned.

STOP :  Listen clearly... this has only been approved by the House.  The Senate still needs to approve this.

The House has passed another temporary extension for Flood Insurance. Let me repeat, (because of the misleading posts about the Tax Credit from last week ) a temporary extension has been approved by the House, good through September 30th, 2010.  The Senate still needs to vote on this extension.

The program has been suspended since May 31st, 2010. Many of us in the real estate world know how important this is.  But why is the government having such a hard time coming together on this, or at least adding the appropriate provisions in order for this to work. This issue has stopped 1,000's of closings from taking place lately and or putting many in jeopardy that live in flood areas with the hurricane season fast approaching. Not only do we need the Senate to vote on the Flood Insurance extension, but we need some sort of bill in place for a longer period, such as 5 years or so. What se thee?

You can read about it here : House passes the flood insurance extension.

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For more information on FHA loans, please go to this link. The FHA Expert

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors

Copyright © 2010 by Jeff Belonger of Infinity Home Mortgage Company, Inc

Upon doing two BPOs recently that involved some land I must say I am SHOCKED, I mean absolutely SHOCKED on how low prices on homes with land have gone down to!

I don't have many buyers asking for homes on large lots but I will sure be sharing this info with them as I am sure many will be ecstatic to get more bang for your buck on these seemingly IGNORED LISTINGS! 

I wonder if people are automatically assuming they can only afford the tract home on the postage stamp lot (not knocking it, I live in and on one!)  Call us at 702-966-2494 if you would like to be set up on an MLS search for these homes starting at only $117000!!!!!!!!!!!!

Make your dreams a reality and check out this list of FIFTY Las Vegas Area homes for sale on AT LEAST A HALF ACRE LOT in ACTIVE STATUS AND UNDER $300K!

Using this method a thief can make it look as if you were never broken into. They can get in, take what they want and reset the latch when they close the door. 

How many of you leave your car unlocked in the garage? How many of you have a garage that leads into your home?

A garage break in may be more than petty theft. It could be someone wanting to cause you physical harm or wanting to take a child.  It may sound extreme but if someone can get in to a home their reasons for doing so can be varied.

Next time you're in the market for a garage door get one without windows or at least spray window frost on them so a thief can't see the latch.  Most home improvement stores carry this in the paint section.

Lock the door from your garage that leads into your home.

Set your car alarm even though it is parked in the garage.

You can't really stop a motivated thief but you can seriously inconvenience them!

Serving California since 1977

First Priority Financial is licensed by the California Department of Real Estate #00654852 Nevin#01366552

3110 Camino Del Rio #311 San Diego CA 92108

(888) 206-5781

Also licensed in Oregon, Washington & North Carolina

Cash or Credit for Your REO Purchase?

Cash is the obvious dominator with overall Las Vegas Area REO Purchases.  Cash not only dominates but CRUSHES financed purchases under $75000.  The primary reason is the stuff priced under $75000 is unhabitable and ineligible for financing or is condo ineligible for financing. 

Asset managers for REO also may choose cash offers that may be lower than financed simply because financed offers have exceeded their appraised price on the property or because there are less contingencies and they can close quicker (which takes the asset - or liability - off of their books quicker.)

Condo financing is currently a challenge in the Las Vegas Area.  Lenders want to see low investor concentration, low HOA deliquencies and no construction defect or other litigation against HOA or community.  To determine if a condo is eligible for financing, a condo certification may be ordered from the HOA (this does cost money) and have it run by an underwriter.

Whether you are all cash or a financed buyer, you can search Las Vegas Area (Henderson & North Las Vegas too) homes right here for free and no obligation!

View other REO Stats for the Las Vegas Valley!

Last Month's Las Vegas Area REO Financing Profile Report