If you’re lucky enough to receive a monetary gift to use as a down payment on your new home, you need to know the right way to deposit it and document it.  We recommend choosing a lender to guide you through the rules and regulations to make sure that you can use the gift to purchase your new home without any issues.  To get you started, we asked our official lender, Mortgage Consultant Drew Stacey of First Place Bank, a few questions to get the basics down. Q: Who can gift money for a down payment on a house? A: Fannie Mae guidelines say that it must be a relative   Q: Does the timing... [more...]

The FHA Commissioner cautioned against further increases of the down payment requirement at a subcommittee meeting earlier this month. There is already a list of proposed changes to the FHA loans, designed to shore up the agency’s cash reserves, but some were pushing for an increase of the minimum down payment from the current 3.5% to 5%. Rep. Scott Garrett (R-NJ) introduced a bill to raise this down payment last October. The bill would have to be sent to the floor and voted on before this increase would happen. Commissioner David H. Stevens stated that this would eliminate 300,000 new buyers... [more...]

If you are preparing to, or just bought, a new home, you’re probably working toward managing your finances. There are so many places online that offer to help, but it’s good to get advice from the experts before trying them out. We heard about some great financial websites from Mellody Hobson, financial contributer for ABC news. So we went to check them out for ourselves. Mint.com This site has been named best online personal finance tool by Money Magazine, and the best budgeting site by Kiplinger’s Magazine. First of all, it’s totally safe and secure — no different... [more...]

There’s new talk about what is currently known about the $8,000 new home-buyer tax credit. Some lawmakers and industries want to extend the credit into next year and modify its terms. New ideas include extending the credit to all homebuyers and increasing it to $15,000. What’s important to remember is that these are just initial plans. The same terms were originally included the first time the housing bill went through congress and were stricken. Here’s USA Today’s list of new proposals currently being discussed:  Read More →

Some new regulations have and will go into effect that can affect your closing if you are buying or selling a home. The regulations are as follows: Home Valuation Code of Conduct rules (HVCC): As of May 1, lenders and third parties are prohibited from influencing an appraisal report — this means that there can be no attempt by lenders to speed-up (and thus influence) an appraisal. Borrowers are also required to have access to a copy of the appraisal within three days prior to the closing of their loan (although borrower may waive this right.) So, these rules are already in affect. Housing... [more...]

Consumers should be aware that credit card rules are changing. The bill passed the Senate and House by an overwhelming majority. There are both Senate and House versions. The goal of the new bill to regulate credit cards is to protect consumers. Some say they may have unintended consequences, we’ll have to wait and see what happens after the bill takes effect. There are several important parts to the bill that will effect you. The bill addresses retroactive rate increases, which happens when you get behind on your payments — the credit card company can raise your rate on your balance... [more...]

The markets went up Thursday before the holiday due to an announcement of expected first quarter earnings from Wells Fargo Bank. Wells Fargo expects to report a net income of $3 billion, or 55 cents per share. Wells Fargo reported the following in a news release on April 9: “‘Our business momentum is strong, and we expect our operating margins to remain at the top of our peer group,’ said Chief Executive Officer John Stumpf. Expected results include: Total revenue of $20 billion, including another quarter of double-digit revenue growth at legacy Wells Fargo, up an estimated 16 percent. Strong... [more...]

Dan Green, the author of the Mortgage Reports Blog makes some OUTSTANDING comments on his blog article today. I highly encourage anyone considering buying this summer to take a read ASAP before an opportunity passes you by, as it has so many others. Just one year ago, sellers were assisting buyers in their down payment on their homes, that is gone today, and in a few months, things will tighten up again for buyers. Bottom line, get out there and buy if you are planning on it, because lending is tightening up again. A few key points that Dan makes are worth repeating here in a succinct form: “It... [more...]

If you are thinking of getting a home loan, you should know your credit score. In this market, it’s important to keep a good credit score if you can. If you’re a first-time buyer thinking of entering the market you will need a good credit score to get your loan. What’s a great score? 750 or higher. The Federal Reserve defines 5 questions, for which the answers will determine your score: Do you pay your bills on time? What is your outstanding debt? How long is your credit history? Have you applied for new credit recently? How many and what types of credit do you have? I recently chatted... [more...]

There is so much more involved to getting a mortgage than getting the “Lowest Rate” Here are a few things I do for my valued clients, proving that its about the service provided and the whole package and not only about the rate… 1. I personally like to evaluate a client’s full financial picture. Maybe they should finance 100% and eliminate all of their debt or bits and pieces of it. 2. Should they do one loan at 100% or two loans such as 80/20, pay PMI (Private Mortgage Insurance) or have a higher interest rate and no PMI. 3. Each loan is custom tailored to fit the client’s... [more...]