Nevada Real Estate >> Las Vegas Real Estate Specialist: New Jersey: East Brunswick

 

I PROMISE….  I GUARANTEE… I AM THE BEST…. I AM THE CHEAPEST

 

 

Do people still fall for such phrases as the best interest rate? Or guarantees with fine print or misleading titles or misleading fine print? Haven't many of us learned from this or from others that fell for it? How about common sense? Or just the fact that you get what you pay for.

Let's look into this a little further. I will tell you that I will guarantee you the best interest rate. But did I guarantee you that you will close on time or even close? Did I guarantee you or promise you that I can be reached very easily or that I will follow up with you often? This part of the business is called "service" or "customer service".

 

 

TIME IS MONEY

 

People fail to realize that buying a house from a realtor and using a loan officer to help you with your mortgage comes with time. And we aren't talking about a few hours of my time. It's not like buying a tv, that you go to a store and talk to the sales person. The sales person answers some of your questions and gives you some recommendations, then you buy the product and you are out the door. A good loan officer is not done with the borrower until the loan closes.  This could be 3 to 8 weeks. I will tell borrowers that I am not the cheapest, but I will be competitive.  I know what it takes to properly educate a borrower about the whole process, to give them excellent customer service, and to fit them into the proper loan program.

 

 

There could be so much said for integrity. To me, it's being upfront, being honest, and being  sincere in what I state and do for my clients. There is so much misinformation out there and many questions that are answered incorrectly or with the wrong answers. But sometimes you don't know until it's too late.

Just a month ago I had a borrower apply for a USDA loan. I was more than happy to help and because it was the best program for them. Their realtors loan officer told their realtor that they would be best with a FHA loan. First off, these borrowers never spoke to the loan officer. So how would he know?  Maybe because he was most comfortable with FHA loans? What about what's best for the borrower?  Remember the pay option arm, a loan program that gave you 4 payment options. Many loan officers sold this program, stating that it had a fixed rate, and that this was the best loan program out there. It was a good program if used correcly and if it was explained correctly.  But a quick fyi...  this loan paid the most to loan officers, hence why many sold it, even if it wasn't good for that borrower.

Just the other day I had a realtor tell me that their loan officer told them that all lenders had the same FHA rate of 5.0%.  hhhmmm... That is partially correct and that statement alone is very misleading. Yes, all lenders have a 5% rate for FHA loans.  But at what cost to the borrower?  Something that the loan officer failed to explain. What is that phrase? What I don't tell you, you don't know? So if I don't explain all of this in detail to the borrower, will they fully understand?  Normally not.

 

 

 

Summary :  In the world of mortgages, there is a cost for everything. Some will charge you less, some will charge you more, and some will be right in the middle.  I like to think of myself giving borrowers a good deal, because I know what I will be doing for my client. Not the best deal. I know that I will educate them properly, steer them in the right direction, be available more than the average person, and get the deal done. And one very important issue....  if a problem arises, everyone will know about it when I know about it, and not at the end. This is something that many find out at the end. So what did that great rate get you?  People, stop falling for such things as Guarantee 10 day closings, best rates, etc, etc. These are gimmicks and marketing ploys. If I didn't have to be on top of things constantly, know what I am doing, and so much more, I would easily give the best rate all the time. But then again, define best rate?  Ah....  to me the best rate would be something that doesn't cost me anything at all. So how can one say best to begin with?  Just food for thought.

Lastly... when shopping for a mortgage, if you base your decision just because someone was the cheapest on paper, this could be a very bad decision on your part.

 

 

 

My guarantee to you?  I won’t be the cheapest. I won’t be the most expensive. I will be competitive and very fair…. And most of all, if I say yes to your loan, I will close it. (except for things not in my control. Such things as bad appraisals, items on title, etc, etc.)

 

 

 

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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 !!!

 

 

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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!

Important Information about the First Time Homebuyers Tax Credit

 

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

 

FHA Home Loans – Borrower beware of your lender when buying or refinancing 3 Unit & 4 Unit properties

FHA Loan requirements have been changing all across the board in the last 18 months.  When it comes to FHA loans for a borrower trying to purchase or refinance a triplex (3 unit) or a quad (4 unit), there are some important requirements that have changed.

This is based on my 2nd borrower as in many as 10 days that was not given proper information on residential properties that are 3 or 4 units.

 

 

For all maximum mortgage amounts on FHA Loans, regardless of the number of units. - FHA mortgage amount limits - Showing 1 family (single family units), 2 family, 3 family, & 4 family

 

 

Important things to know with multi unit properties with a FHA Loan

 

2 Unit Properties - Duplexes

Buying or refinancing a duplex with a FHA loan follows the same guidelines as it does for a single family dwelling.  The only difference is that one of the units must be your primary residence and you can only use 75% of the rental income to help you qualify for that property.

 

3 Unit & 4 Unit Properties

This property still must be your primary residence, meaning that you must live in one of the units.  The good news is that you still only need 3.5% down on the FHA mortgage.  On a conventional loan, there are LTV restrictions and even pricing hit adjustments for the worse when it's a 2 to 4 unit. Some other restrictions or guidelines for 3 to 4 units with a FHA loan.

 

• Self-Sufficiency Test - The borrower must meet this test for either a purchase or a refinance. The test states this :

Gross rents less the vacancy factor for all units, including the owner-occupied unit, must be => the PITI for the subject property. The Vacancy Factor is explained here : FHA Vacancy Factor

In layman's terms, the total rents must be the same or greater of the total monthly mortgage payment, to include taxes, homeowners insurance, and the mortgage insurance. These rents must be determined by a FHA certified appraiser. Meaning that you can't use rental leases for this specific test. Self-Sufficiency Test info found in HUD 4155.1  2.B.4

 

• Rental Income to qualify - You still need to also qualify with the normal debt-to-income ratios in regards to your income, in which you can use the rental income. But you can only use 75% of the rental income for the purpose of this qualification.  As the primary borrower, you can't use what you would pay for that unit as rent to offset your mortgage. All you are including in order to qualify is your monthly gross income.
  

 

• Reserves - When buying a 3 or 4 unit, you must have 3 months PITI in reserves. These reserves can't come from a gift. HUD 4155.1 Mortgage Credit Analysis - You do not need any reserves for a refinance.

 

 

Summary :  These are normal HUD guidelines for FHA loans.  Keep in mind that some investors and or lenders might have investor overlays, meaning that they can add to these basic guidelines. And what inspired me to write this post today was because of a borrower that contacted me and what she wasn't told. She wasn't aware or told that she needed 3 months in reserves when trying to buy her current property. She needs to close in 30 days, yet she would have needed $9,372 after closing, as reserves. She said that she wouldn't have this for another 4 months or so. So as you can see, this loan would have never closed in the next 30 days with the previous lender because the loan officer didn't know the basics.  Buyer beware.

 

KEY FOOTNOTE - You can't use a FHA mortgage to buy any type of property as an investment property.  And for first time homebuyers, this is a great way to have someone help with your mortgage payment and to help build equity... by buying a 2 to 4 unit property.

 

Important Reminder – It’s cheaper to purchase a 3 unit or a 4 unit with a FHA Mortgage than with a conventional mortgage for several reasons, even if you have 700 + credit scores. Speak to an FHA Expert to find out these differences.

 

 

 

________________________________________________________________________________________________

 

                    

                                                                                           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 !!!

 

 

________________________________________________________________________________________________

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

For more information about the 2009 Tax Credit for First Time Homebuyers : 2009 Tax Credit

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

 

 

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