Tag Archives: Idaho Mortgages

Good article from USAA on building credit history from scratch

1146426_house_question_2I get many first time home buyers in my office who have no idea about their credit history much less their credit score.  With a little preparation ahead of time, they could prevent an unpleasant surprise.

If you have an adult child that is just going out into the real world or college, it would be wise to discuss this with them. https://www.usaa.com/inet/pages/advice_building_credit?offerName=logoff_advice_building_credit

You should take advantage of the free reports offered by the bureaus once per year at www.AnnualCreditReport.com.  These reports won’t give you their score-they make you pay for that, but you are looking for any surprises and how any existing creditors are reporting your credit history.

Even if you’re one of those types who says I don’t need credit, you do need a credit history to get the best financing when the day comes to apply for a mortgage.  Contrary to what some like Dave Ramsey say, living without a credit score has many disadvantages.

If you open credit accounts, buy a tank of gas a month on the account and then pay it in full when the bill comes, you’ll build a history of responsible use and avoid finance charges.  This method works well while avoiding debt building up.  After 6 months, you’ll see the positive effect on your credit score.

I would add that if you’ve had a bankruptcy or foreclosure, you really need to make an effort to repair and rebuild your credit history.  You can’t shun credit simply because you had problems.  A good part of your credit score is how you manage your credit.  Avoiding it is not the same as managing it.

With a little advance effort, you can detect any errors, bad credit, and monitor how your existing credit is showing.  It’s common for me to work with borrowers some time in advance to get ready to purchase.  Should you need this help or know someone who might, call me.

 

 

Are you really “pre-approved” for that home loan?

I sometimes get calls from a home buyer who states they are pre-approved at ………. Bank.

In the course of conversation, I ask the usual, necessary questions to provide good information and recommendations and discover that they have not been asked these questions by the other lender. Many times I hear that the other lender hasn’t seen their tax returns or bank statements.

Since lending in 2013 is much more complicated and requires documentation for all aspects of a borrower’s finances, credit, and the property being purchased, I’m very surprised that other lenders didn’t go into these questions.

Bottom line is; if a lender has not asked for and examined your W2s, paystubs, tax returns, bank statements, and ran credit, you don’t have a pre-approval for a home loan, you have at best a pre-qualification.  Pre-approvals are based on actual documentation and pre qualifications are based on whatever the borrower says to you.  We know that some borrowers will not tell you the whole story because they think that its not important.  Some will outright lie about past credit problems, and some simply don’t want to do their part in the home buying process, ie gathering the necessary documents that it take s to get a home mortgage in 2013.

I say that you approach getting a home mortgage the same way you approach a health concern with your doctor.  You tell them everything you are experiencing or are concerned about, you take the pre-appointments blood test or other screenings, you answer honestly the questions your doctor asks and then you can get the best advice and treatment.

If you are a home seller, you should insist that your prospective buyer provide a solid pre-approval letter from a reputable lender.  some home builders in my market, Boise Idaho , have required that any prospective buyer pre-approve with their lender to be sure.  If you are a Realtor, don’t let your buyers put offers on homes without having a solid pre-approval letter.  Yes, they want to go look at houses as that’s the fun part, but it will be well worth the time to make sure they have a solid pre-approval beforehand.

If you need a lender who will do the hard work beforehand, I know of one.

Just finished up my busiest month since May of 2006!

Interest rates moved up around memorial day but my clients who listened to my advice to lock their loans got deals that probably wont come around again.

Right now, if someone was looking for a no cost VA refinance or an FHA streamlined refinance would pay about 1.25% higher than what was available before memorial day.

That doesn’t mean that rates are bad, in fact they are still great, just higher than they were a short time ago.

I keep track of my clients situations and needs and when I see a chance to improve it, I will contact them and let them know what is available. It was those past clients that listened to my advice and had me lock their rates that were successful in getting a no cost refinance in the low 3’s. The clients who didn’t want to lock all thought the rates would drop a little more and missed the opportunity when rates moved up 4 weeks in a row.

While I wish everyone had listened to my advice, most did and that made for a lot of work and long hours getting their loans set up, processed and closed. I did have to skip a few trips to the gym or lunch invites, but it was worth it to take care of my clients.

The shady gimickmeisters are coming out again

Its only a matter of time when an industry is growing before the slick gimickmeisters come out and try to get into what is percieved as easy money.

I get calls almost weekly from past clients and friends saying they a got a call or a mailer from a company offering a rate of 2.5% on a loan.

In most every case, the offer has been something they didnt think it was, ie a 10 yr fixed rate at 2.75% or a 2.25% VA loan that actually turns out to be a 3 yr adjustable rate with 1% origination and 1% discount points.  Compare that to a regualr 30 yr fixed rate VA loan in the 3.5% range with zero origination points and zero discount points.

My advice is to deal only with a local, trusted advisor, never someone over the phone.  If you don’t have one, I would love to help you.  I’m in Meridian, Idaho.  I can be reached at 861-7579.

Interest rates have moved up since the Presidential debates began.

Most people realize that a Mitt Romney administration would probably be better for business in this country. In my market, Boise Idaho, its almost assumed that he will be the next president.

The low interest rate environment is a function of many factors including a pessimistic outlook for business under the present administration.

In the mortgage industry, I have seen that a negative outlook on the economy or bad news in general tends to make or keep interest rates low. A strong economy or positive outlook tends to make interest rates increase.

With the recent presidential and vice presidential debates and the strong showing of Mitt Romney and Paul Ryan, their polling numbers have increased. This gives many the reason to think they will win the election and better times are coming. I think that interest rates will continue to increase gradually until the election.

If the President wins reelection, expect the rates to drop suddenly again. Should Romney be victorious, rates will most likely continue to increase.

A better economy will mean more, better quality jobs and that will mean more home purchases will be made.
For those who are sitting on the fence about refinancing their mortgage, this might be your last chance to grab those interest rates in the 3 percent ranges.

Should you be considering refinancing your Idaho mortgage? I would say run to your local, Idaho mortgage professional and apply today. 2 weeks from now you might miss the boat!

Don’t fall for that “too good to be true” interest rate offer!

I have the advantage of being in the industry and can see a misleading offer a mile a way.

Recently, I was shown an offer for a VA refinance at 2.25% (3.94%Apr) and had to dig into it.  Sure enough this national, Internet only, lender was offering a 3 year adjustable rate VA Loan.  Furthermore, it had a 1% origination fee plus at least 1% in discount points.  On a $150,000 loan that would be over $3000 in additional costs borrower would have to pay just to save about $75 a month instead of taking a 30 yr fixed rate in the low 3’s.  In today environment, it just doesn’t pencil out when you run the savings vs the cost and the projections for long term interest rates.

Now to be fair, I do have adjustable rate mortgages available to my Idaho Mortgage seekers, I just don’t think they are the best choice for most borrowers.  If someone just has to have the lowest rate and will tolerate the risk of an adjustable rate mortgage, then I guess I would write the loan for them after much disclosure of how much they are going to pay if the loan adjusts to its maximum over the life of the loan.

Many times online only lender use these advertisements to simply make the phone ring and then switch the borrower to a normal fixed rate loan once they find out that too good to be true rate is for an adjustable rate mortgage.  This is a classic case of “bait and switch.”

 

 

 

How does a VA refinance work?

If you have a Veteran’s Administration Loan, you may qualify for one of the best loan programs in existence today, the VA Interest Rate Reduction Refinance Loan.  This loan is also sometime referred to as a “VA Streamline” or IRRRL  (pronounced Earl.)

The VA IRRRL allows a Veteran or in some cases, the widow of a Veteran to refinance their loan into a lower rate or from an adjustable rate to a fixed rate without getting a new appraisal or providing a lot of new documentation.  The Veteran’s Administration doesn’t care about the present value of your loan, instead they are more concerned that you have been making your payments on time.  Most people in my area, Boise, Idaho have experience a loss of value in the housing crisis that hit us in 2007.  I have been successful in helping my clients get lower rates and payments even though their current market value is probably less than when they originally took out their VA Loan.

One thing to note about the VA IRRRL, it doesn’t let you obtain any extra cash out of your loan nor does it allow you to payoff a 2nd mortgage or Home Equity Line of Credit (HELOC.)  A Veteran home owner could take their extra mortgage payment savings and apply that to any second mortgage and accelerate the payoff.

It also requires a process called a subordination of the second mortgage where the second mortgage lender agrees to allow the new first mortgage.  Many times there is a fee from the second mortgage holder to do the agreement and it takes a week or two to get it done.  It is something we do as part of our service.  I advise my clients when seeking to refinance their Idaho VA Mortgage if they have a second mortgage that needs subordinating.

Currently in my market, Boise Idaho, we are refinancing VA Mortgages into new, lower rate loans in the 3’s.  We also have a No Cost VA Loan where for a slight increase in the mortgage rate, we obtain a large mortgage credit for our clients to offset their closings costs.  those No Cost Va Loans in Idaho are also in the 3’s for 30 yr fixed rate loans.

It is common for many of my past clients to call me up and have me run their numbers and see if another No Cost VA IRRRL is available.  If someone saves even $50 per month and they are not increasing their loan balance, it is like getting a free $50 or more per month.

There is not enough space here to go into all the details of getting a VA refinance in the Boise, Idaho.  should you have any questions or want me to look at your situation, call me at 208-861-7579 or simply shoot me an email and I can get your custom mortgage quote for you.

 

Rates just keep dropping!

This morning I logged on checked rates, they are lower than when I left on Friday.

What this means is that someone could buy a $190,000 home in the Boise, Idaho market and have a payment under $900 per month.  I based this on a Idaho Housing Fannie Mae 30 yr fixed rate with 20 % down.  For someone without a large down payment,  they can get into that house for $5600 down and a payment of $1050 per month with taxes and insurance in the Boise, Idaho market.

 

Now rates will go up in the future, so if you are thinking of buying;now if the time.  You’ll be kicking yourself next year.

Check this out to see what bargains are out there in the Boise, Idaho market.

http://www.homepath.com/search.html?q=boise%2C+Idaho&pi=&pa=&bdi=&bhi=&x=0&y=0

 

 

Don’t make your loan tougher than it needs to be

I just closed an Idaho Mortgage loan in about 30 days that I could have had finished a week earlier.  Why did it take a week longer?  Easy, the borrower didn’t supply me with a document I had asked for multiple times.  I had to go find it from a third party and it didn’t get to me very fast.

When I start working on your loan, I will tell you what we will need to proceed and even give you a written list. 

I had asked for this document for at least 4 times while the borrower was looking at homes.  I even nudged the realtor to help me get this.  Even when the borrower got their offer accepted with a short contract closing date, they still had not gotten me that document.

When you’re getting ready to move, and have started packing up, that is not the time to start  looking.  I had to have a third party try to locate the missing document.  It was uncertain if I could even obtain that document or how long it would take.  It had the potential of killing the deal at the last moment.

In this case, the Title and Escrow company was able to get me that document in about 10 days.  It still took a lot of effort to get final underwriting approval and get the loan documents to closing before the expiration date.  This was an stressful situation that didn’t need to happen.

The bottom line is that borrowers need to get everything in to their loan officers asap.  I can work miracles, but don’t walk on water nor do I have a “magic loan wand” that can make underwriters waive loan requirements. 

As I said earlier, one of my goals as your Idaho Mortgage Guy, is to reduce the stress involved to a minimum.  Buying a home and moving is stressful enough.  Don’t bring extra stress upon yourself.

Need to get your loan done quickly, I just closed one in 20 days. Start to funding!

This was a VA refinance, so it takes 4 days from signing to funding due to the right to recind period of 3 days. 

It helped that the client was prepared and got anything I needed right away.  The Title Company, Pioneer Title of Ada County, worked the signing into the clients work schedule.  It was the smoothest loan I have had in a while.

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