VA Loan Home Purchase Tips For Vets is a post from: Chandler AZ Mortgage

There is a lot of advice out there, on the Internet and other places, about the best way for Vets to get a home loan. And though it’s been said before, it’s worth repeating: if you are a Veteran or other eligible person and you do not have the 20% most mortgages require for a down payment to avoid paying PMI, a home purchase using a VA fixed rate mortgage or a VA hybrid Arm, loan is the way to go.

In addition to the low down payment, there are other advantages to this type of loan. First, you will not have to pay mortgage insurance no matter how small your down payment is. Also, you can get 100% financing, with no down payment at all, and the seller can pay most or all of the closing costs. VA loans also offer very competitive interest rates and limit the fees that a lender can charge.

In deciding on which of the many loan offers and programs to choose from, here are four tips to keep in mind.

Stay in contact with your loan officer. Loan officers have many customers, so if you don’t hear from them, make sure you contact them. If you are sitting around waiting for a phone call you might miss getting qualified or even getting the best interest rate.

Just because you qualify for a house doesn’t mean you should buy it. If you qualify for a higher amount than you are comfortable with, remember, you do not have buy a home for that amount of money. Your underwriter can help you downsize the loan to an amount you feel you can deal with. You don’t want to get in a situation where your mortgage payments are too high just because you qualified for that amount.

On the other hand, if the bank qualifies you for less than you wanted, you have to remember that the bank is trying to protect itself from a potentially problematic loan, and in a way it is better for you not to get into too much debt. It’s better to stay safe with a loan you can afford.

Talk to a variety of lenders. It’s always a good idea to get loan offers from a minimum of three different mortgage lenders. Even if you have a lender that you prefer, getting another two offers for loan costs and your qualifying amount gives you the opportunity to get the best deal.

Ask a lot of questions. There are no bad questions, only the ones you don’t ask. You don’t want to start asking questions at closing. Having all your questions answered ahead of time will give you peace of mind and make your bung experience better.

Chandler real estate professionals advise potential homeowners on loan approvals is a post from: Chandler AZ Mortgage

Getting the home loan you need, can be accomplished if you follow these tips your Chandler real estate professional wants you to know. When searching for Chandler homes, your financial life is going to be scrutinized by the bank so be responsible. Make sure you pay your current mortgage or rent on time or be a little early. Don’t move to a new place.

Pay all your bills on time. Your payment history on your cable bill is as important as your cell phone and credit cards. Your financial patterns are going influence whether or not you get a mortgage.

Keep working for your current employer. A stable job is more important than a couple dollars more a month. If the new job is going to substantially increase your income, talk with your Chandler real estate expert and let them advise you.

Stay with your current insurance company. Wait until after you’ve purchased the home to make changes in your financial picture. You’re trying to show stability.

This isn’t the time to make major purchases such as a new car or boat or jewelry. Spending sprees are not considered responsible. Don’t apply for new credit.

Don’t change banks, open or close accounts or even pay off collections or consolidate loans. If you have a question about your financial situation, ask before you act.

It’s also important not to max out your credit cards trying to do home improvements. The bank wants to see that all your credit including the new mortgage will be below 30% of income.

Don’t join a fitness club, finance a medical procedure or open a new cellular account without talking to your loan officer or your Chandler real estate professional. Keep these things in mind and the process will go smoothly.

4 Simple Tips to Buying a Home is a post from: Chandler AZ Mortgage

Except for the constant changing world of residential mortgage underwriting guidelines, getting a first mortgage doesn’t have to be the ordeal you may have heard about. It can be a smooth process, if you keep in mind a few simple steps.

Know how much you can borrow versus how much you want to borrow. This guideline is the same no matter whether you’re using a VA loan to purchase a home or a FHA or Conventional mortgage. Lenders have their rules for how much you can borrow based on the facts of your mortgage like your financial situation. But and here’s the big BUT – you don’t have to borrow what you qualify for if you don’t want to. If you can find a house that fits your needs that falls under the payment level that you are qualified for, then you are golden. (an insider tip here: tell your real estate agent the price range that you want to shop for if it is lower than the price of home that you are approved for)

Make a large down payment. Although you can purchase a home with nothing down if you are using a VA loan or 3.5% down for an FHA mortgage, the larger your down payment the less you have to borrow. It will also be easier to qualify for a loan. If you can put 20% or more down, you can get out of having to buy mortgage insurance.

Ratios count. The formulas that lenders use to qualify you for a mortgage are called “debt-to-income ratios”. There are two that are traditionally used. The “front-end” ratio says that your house payment should be less than approximately 28% of your monthly income. The “back-end” ratio says your house payment plus the minimum payments on other debts should not be more than around 36% of your monthly income. Often, you can exceed the front end ratio if your back-end is less which means you may want to consider getting rid of the Escalade (give you less of a monthly gas bill too).

Finally, know what your closing costs will be. Mortgages involve costs other than just the monthly payment. Expenses to be aware of include an appraisal, a home inspection, and prepaid interest and title insurance, for starters. You will need to have money set aside for these expenses because if you don’t you could experience some delay in getting your mortgage either approved or closed. Your loan officer can assist you in finding out what your closing costs and other expenses will be.

With these steps in mind hopefully you’ll have smooth sailing as you seek out a mortgage to buy a home.

FHA 203k Loans in Chandler, Arizona: Popular For Rehabs is a post from: Chandler AZ Mortgage

Chandler AZ FHA 203k Highlights

The FHA 203k mortgage loan has become well-known for people shopping for Chandler homes with the recession in the housing market. When a property is owned by the financial institution, chances are that the property may be in need of a little work and the FHA 203k mortgage is a great option. Some of the frequently asked questions we see about the FHA 203k mortgage loan include:

What is an FHA 203k loan?
The FHA 203k mortgage loan is a rehab loan that works much like a development loan. The one who is buying the home is able to purchase a home that is in need of repairs and is able to mortgage the repair work in the mortgage to repair items in the house. The FHA 203k mortgage consists of the purchase price of the home plus the construction costs for the work to be performed after close.

Example:

$100,000 purchase price of home
$20,000 Repairs Needed (see a list of the most common FHA 203k repairs)
$120,000 Total Loan Amount

The FHA 203k loan: How much do I write the sales contract for?
The offer is the purchase price of the dwelling only. Be sure not to include the cost of repairs anywhere in the sales contract or offer. In the above example, the purchase price on the sales contract or offer would be $100,000.

Is the FHA 203k loan harder to qualify for than a traditional FHA loan?
Getting an FHA 203k loan is roughly the same as getting a regular FHA loan. What does it take to qualify for an FHA loan? Generally speaking, a credit score above 620, a good job and a down payment of 3.5%. Of course there are more details to being qualified, but those are the basic requirements.

How do I go about finding the right contractor here in Chandler for the work?
It is really useful that you work with a general contractor that can perform all whatever repair work is needed. Your loan officer can easily help recommend one here in Chandler they should know at least one good contractor. It is also important that the contractor be experienced in FHA guidelines so that they can include any FHA required items in their contract.

Which is Better? Short Sale or Foreclosure? is a post from: Chandler AZ Mortgage

Chandler AZ USDA Loans is a post from: Chandler AZ Mortgage

Is it possible to get a USDA loan in Chandler? Maybe not. But – there are plenty of areas that are close to Chandler where you can get a USDA loan with 100% financing and no mortgage insurance. When FHA loans no longer allowed 3rd party down payment assistance, the USDA Loan program exploded in popularity.

Here, Steve Ortiz from Academy Mortgage talks about the USDA loan program and why many people here in Arizona like to finance their home with a USDA loan.

What Sets Mortgage Rates is a post from: Chandler AZ Mortgage

Mortgage rates are largely decided by the Secondary Market, not simply set by lenders.

The secondary market is comprised of investors who purchase the loans made by banks, brokers, lenders, etc. and then either hold them for their earnings, or bundle them and sell them to other investors. When the secondary market sells the bundles of mortgages, there are end investors who are willing to pay a certain price for those loans. That market price of those Mortgage Backed Securities (MBS) is what impacts mortgage rates.

Typically, investors are willing to accept a lower return on mortgage backed securities because of their relative safety compared to other investments. In contrast, other investments are considered more of a gamble, specifically stocks which are based on earnings and profit vs real property.  The movement between the two investment vehicles often dictates mortgage rates.

Rates are expected to go up when the economy is flourishing or is expected to flourish, because then stocks will likely become the more favored investment. When investors buy more stocks, they purchase fewer MBS, which decreases the price. When the price of the MBS is lower, the yield increases. Since mortgage rates are based on the yield of the 30 Year MBS, you would expect rates to increase in this environment.

Rates are expected to go down when the economy appears to be dropping or is doing poorly, investors typically move their money out of the stock market and into the safety of the MBS. This drives the price of these investments higher, which results in a lower yield. Since mortgage rates are based on the yield of the 30 Year MBS, you would expect rates to decrease in this environment.

Understanding how rates move is not as important as having a loan officer that is equipped with the technology and professional services to track and stay watchful of the exact moment rates make a move for the better or worse.

How To Save Money on Your Mortgage in 2010 In 5 Easy Steps is a post from: Chandler AZ Mortgage

Most things really worth doing need more than one step to accomplish. Anything at all complicated requires preparation, know-how and perseverance through several steps during a period of time. All that is also true about anything, like deciding on your lender. Choosing to save money on your mortgage in 2010 is not any different. Here’s how you can save money on your mortgage in 2010 in 5 easy steps.

Step 1. Be a credit expert. This is very important because lenders look at your credit score to help assign an interest rate to your mortgage. Youre at a serious disadvantage if youre one of four people whose credit report is erroneous. Inaccuracies may block you from getting a mortgage, and will make your interest rate soar. Youre responsible for meticulously picking apart your credit report. If you find mistakes, document them clearly so you can make a case to the credit agency. Should you decide not do this step, you will let inaccuracies ruin your credit score and mortgage terms.

Step 2. Choose a loan type that suits you. This can be a crucial step that will require your full attention. Do it this way: Buyers who saved money for a down payment may be better off going for a conventional mortgage. Nevertheless, theres no harm in finding out for which government-backed programs you qualify. The reason why is most conventional mortgages require down payments of up to 20 percent. Paying that 20 percent up front likely means you wont have to pay private mortgage insurance einsuranceh.

However, a few government loans eliminate hefty down payments and PMI. Qualifying veterans and active-duty military members have access to the VA home loan program, which greatly reduces or removes down payments. The Department of Veterans Affairs insures these loans that are loaded with financial benefits. USDA loans serve mostly rural homebuyers, but like VA loans they often feature no money down.

Step 3. Find a favorable loan length. What we are doing here is to go for the shortest mortgage life that you can afford. First-time homebuyers spend years paying off the interest before they get a chance to chip away at the principal. You can get 15- or 30-year fixed-rate mortgages, while most adjustable rate mortgages run 5-1 and 7-1. Additionally, it depends on how much money you have now and how much youll be making. Regardless, always shoot for the shortest mortgage. It will save you money in the long run. For example, financing $80,000 with 7 percent interest costs $42,000 less with a 20-year mortgage than with a 30-year one..

Step 4. Pay in advance. To elaborate on that a little bit, make an effort to put an extra $100 each month toward your monthly payment. No matter what these little extras save thousands in the long run, but might cost you in the short run assuming your mortgage has prepayment penalties.

Making these payments shorten the life of the mortgage and save you money. The savings for a 20-year, $100,000 mortgage with 7 percent interest are considerable. Youd save $20,000 and trim the mortgage by four years. When you send the extra payment, tell the mortgage holder that it goes toward the loan principal..

Step 5. Befriend your lender. Additionally, do not settle for a lender who fails to work with you or doesnt do everything to save you money. Be suspect of lenders who ignore your questions. It seems like common sense, but some prospective homebuyers get stuck with questionable lenders.

Finally, assuming you have kept to the program and followed the tips well, you’ll have succeeded and may now have fun with the fruits of that success! You can pat yourself on the back and congratulate yourself for having achieved it! You set out to “Climb this mountain”, and today you have done it! Revel a bit in your accomplishment. Now take advantage of the fruits from your accomplishment!

Learn how to save money on your mortgage at chandler-az-mortgage.com.

Are We in a Double Dip Market? is a post from: Chandler AZ Mortgage

Housingwire reports that Toronto-based Capital Economics says that a double dip in the United States housing market is now materializing. Additionally, their report shows that for every current home for the market, there are two more homes waiting on a sale.

While this research clearly shows the beginning of a downturn, there are many conflicting opinions over whether or not a double dip will occur. The Federal Reserve Bank of Cleveland, for one reports that there are still pockets of strength.

Dales report, “Double Dip Begins,” argues that the first time homebuyer tax credit created a surge in home sales that quickly plummeted in May.

“The expiration of the homebuyer tax credit at the end of April has triggered a double-dip in the housing market, with new home sales falling particularly sharply in May,” he writes. “The only reason why existing home sales did not fall significantly is because they are measured at the contract closing, rather than signing stage.”

The tax credit closing extension should then allow home sales to fall more gradually.

Foreclosure numbers were also on the rise in the first quarter. The inventory rose from 4.5% to 4.6% and the delinquency rate increased from 9.5% to 10.1%. Delinquency rates measure proportions of borrowers that have missed at least one mortgage payment.

“That means the potential supply, or “shadow inventory”, rose from 7.6m homes to 7.8m,” Dales said. “That dwarfs the 3.9m homes already on the market.”

Dales cites several sources for his study: Bloomberg, CoreLogic, FHFA, Thomson Datastream, Case-Schiller, MBA, NAR, and NAHB.

The report does show pockets of strength:

“While the decrease in net exports will likely lop off a few tenths off of real GDP growth in the second quarter, the sharp increase in nonpetroleum imports suggests that domestic spending is continuing to recover,” states the report. “The strengthening of the dollar has not hindered US exports yet, as exports climbed 2.4% in May.”

VA Refinance – Two Types to Consider is a post from: Chandler AZ Mortgage

Chances are, if you already have a VA mortgage it is likely that you have thought about a VA refinance mortgage as well. The VA loan can be refinanced through two different programs: a straight up refinance and a streamline refinance.

With either program you will still realize the top benefits of a VA loan which include:

• No PMI – this means a cheaper mortgage payment as compared to the same loan with Fannie Mae, Freddie Mac or FHA
• No Prepayment Penalty – you can pay your mortgage down or off without any restrictions
• Assumable Mortgage – you can transfer your VA loan to an eligible qualified individual without them having to get a whole new loan

Two VA Refinance Types

Regular VA Refinance – to qualify for this loan program you will basically go through the same process you went through to get your VA loan in the first place. You don’t have to have a VA loan first to get this mortgage. You can refinance your conventional mortgage into a VA loan. To get this mortgage, you will have to provide documentation on your income and assets. You will also have to get a VA appraisal. If you home has gone down in value since you first got your home to where the value is less than your mortgage balance, you may have a problem getting this mortgage approved. If this is the case, you may want to opt for the VA streamline mortgage.

Streamline VA Refinance – this loan program is a great deal for those who already have a VA loan as it does not require you to fully qualify all over again like the regular refinance mortgage. The VA only requires that you have been making your mortgage payments on time in the prior 12 months to getting your refinance. In some cases some mortgage lenders are requiring you to get an appraisal and prove that you are employed and making money.

If you are going to seek a VA refinance of your current mortgage make sure you work with a mortgage company that specializes in VA loans. Not all mortgage companies to VA mortgages. Shop around for at least 3 companies so you can get quotes to compare and keep everyone honest. Also, make sure you ask what is required to get the loan with the mortgage company you decide to work with – each lender may have a slightly different list of requirements so be careful.