Mortgage Advice

Call me to discuss your specific needs and we'll find the program that's right for you.
We have a variety of low down payment and no down payment programs available

Lower your interest rate.

Securing a lower interest rate is one of the top reasons for  refinancing. This can make a big difference in your monthly out-of-pocket costs for housing and save money on financing fees.

Build equity faster.

If you are in a position to make higher monthly payments due to an increase in salary or other good fortune, you may want to switch from a 30-year loan program into a 15-or 20-year loan structure. This enables you to build equity faster and save a tremendous amount of money on financing fees.

Change your loan program.

Some homeowners who start out in an Adjustable Rate Mortgage (ARM) find that they would like to switch to the stability of a Fixed ate mortgage at some point. An ARM may have been the most attractive rate and loan package when you first financed your home, but we can provide you with loan comparison charts to find out if you can save money with another type of loan program that might work better for you right now.

Credit score has improved.

If your credit score has improved as a result of making your mortgage payments on time and in full, you may be in a position to take advantage of your improved credit standing. We can review your current credit score, the terms of your existing mortgage, and review options for other loan programs that could not only reduce your monthly payment, but also save you money on interest fees paid over the life of the loan.

Use the equity you have established.

A cash-out refinance allows you to tap into the equity you have built up in your home. You may want to pay off revolving credit card accounts, send a child to college, or use the money for home improvements or personal expenses.

Regardless of your reasons for wanting to refinance your existing mortgage, my team and I are interested in helping you make a decision that works best for you.  We continually monitor rates and alert our clients of interest rate changes in order to inform them of the best time to refinance.

We will also review the terms of your existing mortgage program. It is important to consider whether or not you have a pre-payment penalty written into your existing loan, and what the purpose of the refinance is. It is also important for us to know how long you plan to stay in the home. This helps us to determine whether or not it is beneficial for you to pay points up front to secure a lower interest rate on your new financing. The lender will want to know what the current property value is, how much equity you have built up, and what your current credit score is.

Call me directly for a free consultation. 614-610-4245

            Do You Have $1000
          To Simply Throw Away?

I know this may sound like a very silly question but that is exactly what happens every day to unsuspecting buyers who do not get pre-approved for a loan BEFORE they go house hunting.

Let me explain with a typical scenario…

You have read online that we are in a perfect buyer’s real estate market. Mortgage rates are at all time lows, housing prices are depressed because of the financial crises and there are a lot of houses for sale. You decide it is time to buy your dream home.  So you call Aunt Mildred, who is a  realtor and you start looking for a home.

After many, many hours of  on-line searches, 3 or 4 weekends of going to open houses, and several meetings with Aunt Mildred where you feel she is getting a little bit frustrated with your indecisiveness,  you find the perfect bank owned home. Aunt Mildred says it is a steal and you should make an offer, maybe because she is tired.  So, you are ready to make your first real estate offer.

Because it is bank owned the paperwork is staggering and it goes to some place across the country for approval. It turns out you didn’t fill it out correctly, so you make the corrections and resubmit.

Then you apply for your loan. The lender requests a credit card for the appraisal. It is also a very good idea to have your home inspected. This is another fee that you will be required to pay up front when the service is rendered.

So, approximately 7 to 10 days after your contract was
accepted by the seller you will have spent $1000.00 or more.

Whether Your Loan Is Approved Or Denied These Funds Are
Not Refunded!

And then 2-3 weeks later, you get the fateful email that says, regrettably because you did not have a  preapproval from a mortgage company attached to your offer, another contract has been accepted instead of yours. You are devastated! Your dream home gone. You blame Aunt Mildred, but she has gone back into retirement. Your dreams are dashed.  Your checkbook has taken a hit and your dream house is gone. Here’s what you should have done.

You  should have met with a lender long before you started looking. We talk to people everyday in the scenario above, who are so disappointed.  It is never too early to make sure you can get a loan. Preapprovals are usually free. However, be sure you go to a mortgage person that knows what the are doing. There is nothing more embarrassing than to think you are preapproved and find out too late that  you are not!  

In this pre-approval meeting we can establish what your comfort level is for monthly payments as well as the amount of funds you can comfortably use for the transaction and we can then use these figures to recommend the
appropriate mortgage program. We will pull your credit report and analyze it to make sure you are eligible for a mortgage.

Sellers require preapproval letters. Aunt Mildred should have known that. Sellers won’t entertain offers without them, particularly bank owned and short sale homes.

So, don’t make the $1000 mistake. The first step when buying a home is to get  preapproved.

If you would like to be preapproved for a mortgage call 614-610-4245 or click here to fill out a mortgage application.

In this current real estate environment , don't be afraid of a home that is in rough condition. You can pick out new carpet, get new appliances, put in beautiful kitchen cabinets, upgrade the bathrooms and still only put 3.5% down! Buy it at a low price and fix it up the way you want it.  With our government backed Home Improvement Mortgage you can finance up to $35000  in repairs into your mortgage to improve or upgrade your existing home or make repairs on a rough home you want to buy. That's right, if you find a bank owned house that needs updated, you can finance those repairs into your mortgage and still have a downpayment of only 3.5%.

With this "Fixer Upper" mortgage you can:

*Add a deck or porch     *Replace the furnace   *Remodel the bathroom

* Purchase appliances    *Paint inside and out    *Replace roof 

*New siding all around   *Update kitchen            *Install new windows 

*Refinish floors              *Install carpet              *And much more...

Avoid using credit cards for your home improvements. Keep your cash for furniture and decorating. Homes in Columbus, Franklin County, Hilliard, Galloway, and all Ohio are eligible. This Handyman mortgage can be used for owner occupied 1-4 family dwellings, town houses,row homes,HUD repos,condos or planned unit developments. Closing takes place before the repairs are done, the rehab money is placed in escrow. 

Follow this link to a report that explains how it works. http://www.box.net/shared/eferu7uk

In a housing market where tighter lending requirements have made FHA financing the only option for some buyers, this 90-day policy has prevented the quick resale of foreclosed properties, which affects the ability of communities to stabilize and rebuild. Research has shown that investors can buy, fix and resell foreclosed properties in less than 90 days. This waiver could help get things moving again!

The temporary waiver starts 2-1-2010 and will be effective for one year, unless extended or withdrawn by FHA. To read the waiver in it's entirety go to this link: 

                                             HUD Flipping Rule Waiver   
 

This is an excellent time to contact investor clients who have recently purchased a foreclosed property and those who may be on the fence about purchasing a forclosed and those who got out of the market because of the flipping rule. Add the first time homebuyer tax credit and it is a great opportunity for an early spring sales rally.

The waiver is limited to sales meeting the following conditions to insure FHA borrowers are protected: 

• All transactions must be arms-length; no identity of interest between buyer, seller or third parties.
• Sales w/ 20% increase over seller's acquisition cost will only be permitted if the lender provides documentation or 2nd appraisal which substantiates increased value.
• Waiver is limited to forward mortgages (no reverse mortgages) and cannot be used for HECM

"FHA borrowers, because of restrictions we are now lifting, have often been shut out from buying affordable properties", said FHA Commissioner David H Stevens. "This action will enable our borrowers, especially first time buyers, to take advantage of this opportunity." 

It looks like FHA has listened to all of us...for a change and has pushed the condo rule changes out until 12-7-09. In the letter we received from FHA, which follows, if you read between the lines, it also sounds like they are going to revise some of the earlier changes. The most severe change was only allowing 30% FHA loans in any one condo development. I am sure we will all be waiting on pins and needles the next 2 weeks for these changes, particularly those of you who have condo listings. Following is the letter we received from FHA. I will keep you posted of any updates.


"FHA notice on delay in FHA condominium changes:

Implementation of FHA's new policy guidance for condominium project approval and condo unit financing will be delayed until December 7^th  2009.  The new guidance, to be issued within the next two weeks, will:  1) offer additional leniencies to address the difficult market conditions and 2) augment some portions of FHA Mortgagee Letter 2009-19, providing additional information and clarification.   

Until the new guidance takes effect on December 7^th, 2009 lenders may continue to use the Spot Loan Approval guidance issued in Mortgagee Letter 1996-41.  Further, the site condo and manufactured housing condo project changes that have already been implemented are not affected by this delay. 

To read FHA Mortgagee Letters 1996-41 and 2009-19 please visit: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/ 

Buy that Rough Bank Owned Property and Change it into Your Dream Home

In this current real estate environment , don't be afraid of a home that is in rough condition. You can pick out new carpet, get new appliances, put in beautiful kitchen cabinets, upgrade the bathrooms and still only put 3.5% down! Buy it at a low price and fix it up the way you want it.  With the FHA, government backed Streamline 203k Mortgage you can finance up to $35000  in repairs into your mortgage to improve or upgrade your existing home or make repairs on a rough home you want to buy. That's right, if you find a bank owned house  that needs updated, you can finance those repairs into your mortgage and still have a downpayment of only 3.5%.

But, this is really wild, you can use this remodeling mortgage on the HUD $100 down mortgage, too. That's right, for example, buy a home for $90000 let's say, put $15000 in rehab into it and still only have a $100 down payment! Of course it would have to appraise for $105000, which isn't always easy to accomplish, but if it did, what a deal for you. And... if you are first time buyers, you can get an $8000 tax credit. What a country.

Avoid using credit cards for your home improvements. Keep your cash for furniture and decorating. Homes in all of Ohio are eligible. This Handyman mortgage can be used for owner occupied 1-4 family dwellings, town houses,row homes,HUD repos,condos or planned unit developments. Closing takes place before the repairs are done and the rehab money is placed in escrow.

Do not be afraid of those dumps out there, they may be diamonds in the rough. Keep this mortgage in the back of your mind. You could have all new carpet, new cabinets, new appliances, new everything and end up with the home of your dreams.

HUD is still offering homes in Ohio for $100 down and they will pay $2500 toward closing costs. They are listed by zip code, county, mls number,etc on a website (link below). Granted some of them are rough, but we also offer a rehab loan that allows you to finance repairs back into the mortgage and still only put $100 down. What an opportunity for a firsttime homebuyer. Buy a house for 100 bucks, make it like new with a remodeling, and get a tax credit for $8000! What a country.

I imagine that competition for these homes will increase the closer we get to November 30th, the deadline for the tax credit. We are marketing heavily to potential buyers and I imagine realtors are to. This is a real program, buyers have to have a preapproval and the realtor has to be HUD approved to submit an offer. This certainly is a great opportunity. Call the office at 614-975-5894.

Click here to connect to the website that lists the properties that are available for $100 down