First Time Home Buyers: Listen UP! May 6, 2008
Posted by JeannieBautista in : Financing, Real Estate , add a comment
My name is Jeannie Bautista and I specialize in residential real estate sales. In my experience, I have found that first time home buyers have a lot of questions and feel lost about where to start in their search for a home. Here are some simple steps to follow:
#1. Talk to a lender and get pre-approved.
- This will help you determine what price range is right for you.
- Give you the time and opportunity to shop for the best interest rate.
- Ensure you know the amount of cash needed at closing.
- Sellers will know you are serious able buyer.
#2. Choose a real estate agent.
- This will benefit you because you will have representation throughout the transaction.
- You can feel confident that your agent is looking out for your best interest.
- Working with you, your agent will negotiate the details on your behalf.
- Your agent will ensure that deadlines are met so that the transaction proceeds smoothly.
Buying a home is major investment and you want to be sure to make wise decisions and get the most for your money. If you’re ready take that step, please call me today so we can make it a reality.
Jeannie Bautista
325-763-8616
How Mortgage Interest Rates Are Set May 3, 2008
Posted by GregChaffin in : Financing, Real Estate , add a comment
Mortgage interest rates are not set by the Federal Reserve, nor are they set by the yields of US Treasury bills, bonds or notes. Despite what you hear in the Media, mortgage interest rates are actually set by lending institutions and are based solely on mortgage backed securities.
For many years, the media and inexperienced loan officers everywhere have suggested that the 10 year Treasury Note, a government backed security is directly tied to mortgage interest rates, that the two are separated by a specific interval – which is simply not true. The Federal Reserve cut interest rate 6 times from September 07 thru March 08, yet mortgage interest rates actually rose during that time frame.
Stop being misled, if someone you know is thinking about purchasing a new home, or refinancing their existing one, give me a call. I’ll give you the facts you need to make a truly informed decision.
Greg Chaffin
Mortgage Advisor
(432) 528-3192 - Cell
greg.chaffin@mortgagefamily.com
Don’t Sell Yourself Short, Avoid Foreclosure With A Short Sale. April 25, 2008
Posted by ScottAlexander in : Financing, Real Estate , add a comment
What is a “short sale?” Well, it’s certainly not something that is fun to talk about. Simply defined, a “short sale” is a situation where the market value of the property is less than the amount the seller owes his/her lender. For a short sale, the lender must agree to accept less than the full amount due. Why would a lender do that?
There are several reasons. First of all, the lender really doesn’t want to own houses. It is a huge headache for them to repossess, list and sell homes. It is a costly, time-consuming process. The reality is that often it better for the lender to “cut its losses” and allow the owner/borrower to sell short.
This is cold business driven calculus, not motivated by “feel good” sentimentalism. I can’t blame lenders for the problem. Here is why I bring it up. We might see some of these situations in San Angelo in the coming months. If you are someone who has a problem, the last thing that you want to occur is repossession. So talk to your lender. See if you can work something out. Then you might want to talk to them about a “short sale.”
Scott Alexander
(325) 450-5099
scott.alexander1@coldwellbanker.com
http://www.scottalexanderhomes.com
What Happened to 100% Financing?! April 9, 2008
Posted by GregChaffin in : Financing, Market Reports, Real Estate , add a commentThe days of 100% financing are over for the time being. The exception is VA loans for our veterans. FHA is fast becoming the financing of choice for numerous borrowers for various reasons. FHA loans offer a low down payment and provide the security of a fixed payment. FHA is used when borrowers have limited funds to close requiring a minimum investment of only 3%.
There is a saying in the mortgage industry “No credit is good credit”. FHA is not a credit score driven program. Borrowers who are faced with credit limitations on conventional financing may find a solid alternative through FHA. Borrowers who have no credit established are able to obtain alternative credit sources for creditors who don’t report to the 3 major credit bureaus. This method makes it possible to “build” a credit file for potential borrowers.
Major benefits for borrowers seeking FHA financing are; New debt-to-income ratios of 31/43%. No reserves are required, Sellers in the transaction can contribute 6% towards the buyers closing cost, Borrowers down payment can be in the form of a gift letter from another person, or a gift swap program. What makes a gift swap program different, the seller contributes the down payment funds to a non profit organization that in turn make the funds available to the buyer for their down payment.
Ameridream, Nehemiah and Genisis are the organizations who make this possible for buyers.
The new loan limits for the West Texas area are $271,050.00. This means single family homes with a sales price of $279,181.00 will qualify for FHA financing. Singlewide and Doublewide manufactured homes are acceptable for FHA financing. Some restrictions apply see your lender for details.
Grag Chaffin, Coldwell Banker Mortgage Specialist
(432) 528-3192
http://gregchaffin.coldwellbankermortgage.com
Greg.Chaffin@mortgagefamily.com
Posted by GregChaffin in : Financing, Real Estate