doom & gloom of mortgage…here’s the facts!
I took a little time over Holidays to spend time with family, friends and to regroup and sit back to see clearly what the year 2009 meant in many ways. Then I began to think about what it meant for the mortgage industry, changes and transitions…good and bad. This is what I came up with.
There has been much talk about the horrible loans and what happened to good hard working families, the crash of the stock market, 401K’s disappearing, retirement funds reduced in many cases by more than 50%, job losses, homes lost. Ugh! Could it be grimmer? Well, the clean-up that was needed has begun, for those who over bought whether they did not fully understand their loan or didn’t fully understand what living on borrowed prosperity meant down the road would truly cost. The end result is clean-up, was not only going to happen but desperately needed. If you feel you may not be able to keep your home I may have some suggestions for you. Please call before you walk away!
The good news on the lending side of this is:
“In today’s lending environment and the many reforms that have taken place in the industry, I couldn’t give you a bad loan if I even wanted to!”
In today’s lending there is no reason to be afraid of the loans that are being offered, yes, you have to qualify, yes you have to have a job, yes, you have to have a down payment. No you cannot buy more than you can afford, no there are no stated income loans, no there is no 100% financing. It is clean and basic. Requires lots of documentation and a good amount of work.
Here are the reasons mortgages are safe and to your advantage:
• You have a choice of Plain, Plain and Plain. I wrote a few weeks back the types. Mortgage Programs today are pretty straight forward – 30 Year Fixed, 15 Year Fixed and a few other terms in between (very few). There are still a few ARM Programs hanging around but they’re definitely not the creative type programs of the previous years and are actually a bit tougher to qualify for in some cases.
• Interest Rates are still at all time lows. Interest rates are still very low. How long will they last for? I do not know how long (No crystal ball to look in) However, take advantage of them while they’re here!
• Disclosing to Consumers NEW FORMAT. With the new disclosures and rules implemented with them, there are no more surprises at closing (and if there are you will know about it and you will have time to think about it). Whatever amount the fees are disclosed to you up front (from the very beginning), that amount has to stay the same or if it is different you will be given up to 7 days to think about it! Redisclosed!
• Tax Credit for Homebuyers – Extended. The media has done a good job informing everyone of this, the tax credit for homebuyers has been extended – just in time for tax season! Through April must be closed by June 30th. (Military has the exception) Today’s homebuyers will not only enjoy the benefits of buying a home at a very low price, low rates, enjoy tax benefits of being a homeowner but also have an additional tax credit of $8,000, too! This is for those who are not first time buyers as well, there is a tax credit of up to $6500.00. Check with your tax adviser for clarification of your tax situation.
• Investor and Lender Overlays = Stable, New Generation of Homeowners and Mortgage Industry. Though this can be extremely annoying to the customer and everyone involved in the transaction, the good news in the midst of all the mayhem and scrutiny is that it does 2 things: (1) minimize risk for the lenders and investors which keeps the flow of lending, credit and cash throughout the whole system and (2) If you’re able to get through all the scrutiny of underwriting, approvals, re-approvals and hoops required to jump through to obtain a loan – you deserve to have that loan. It shows you are an ideal customer. This has been a start to what we all know will be a stable, new generation of homeowners in America. A chance for the next generation of homeowners to have the opportunity to afford and maintain the long standing American dream of Home ownership.
As a mortgage banker, I bring many years of financing experience including prior real estate sales to my position. A skilled negotiator with a proven track record of service and loyalty to my clients, I have and continue to help people with their dream of becoming a home owner. I offer my clients a wealth of experience from purchasing to refinancing, home equity lines of credit, including construction and commercial mortgage financing. I understand that every financial situation is unique and that quality information and timely communication are the key to my clients’ high level of satisfaction.
As a mortgage banker, Marcy brings many years of financing experience including prior real estate sales to the industry. She offers her clients a wealth of experience from purchasing to refinancing, home equity lines of credit, including construction and commercial mortgage financing. As a preferred lender with CalSTRS (a program available to teachers), as well as an expert FHA/VA lender, she has and will continue to help people with their dream of becoming a home owner. Marcy is a skilled negotiator with a proven track record of service and loyalty to her clients. She understand’s that every financial situation is unique and that quality information and timely communication are the key to her clients’ high level of satisfaction. If you have any needs give her a call @ 661-755-4883.
Contact for Marcy:
www.marcyjames.net
mjames@gemcorp.com
