NathanSoliday.com

Unless you are living a mortgage-free life… you have probably considering purchasing a home or refinancing a home over the past several months.  Interest rates have been great, but there are a few things you want to consider when searching for the right loan for you.

Keep these Red Flags in mind when mortgage shopping…

1.)    Application Fees: Most reputable lenders today have stopped charging application fee’s before issuing an approval - but there are still a few mortgage brokers that will charge upwards of $500 to begin processing your loan.

Take it as a red flag if your broker tries to make you pay this. It is unnecessary, and usually non-refundable. So, it could be possible that a loan approval is not possible and broker is looking to make a quick $500 as a backup. 

2.)    Pre-Approvals “willy nilly”:  Keep in mind that the current mortgage market and guidelines are changing every day.  If your mortgage broker is issuing you a pre-approval letter without reviewing your information, or at least asking a LOT of questions, take it as a red flag. 

There are some brokers that try to get you “in the door” and then work on your loan from there.  This is a backwards way of doing things and will cost you a lot of time in your mortgage process. 

Consider it a “green flag” if your broker or loan officer is asking for your W2’s, Paystubs, and Asset Information.  This information will give the loan officer a better picture of your current financial situation.

3.)    DO NOT COMMIT LOAN FRAUD!: This one may seem like a no-brainer and you would probably never do something like this.  But, keep in mind… loan fraud is stating that you will live in a house that you plan to rent out. Mortgage loan fraud can also be committed by fudging your income numbers, etc.

Mortgage oversight is much stricter than it used to be, and most brokers don’t have the guts to do things like this… but there are a few that are rolling the dice.

Consider it a HUGE RED FLAG if something like this is suggested, then… find a new lender.

4.)    Pushy Loan Officer: Be leery of any broker that is trying to get you to sign right now.  If the broker seems overly aggressive don’t let them push you into something that you are not interested in. 

It is true that interest rates are bouncing around a lot these days, and in a few cases in may be in your best interest to lock quickly. If this is the case, do your homework a little quicker by checking around with other lenders.  But, if your loan officer is making you uncomfortable or not working at your pace then beware.

5.)    Teaser Rates:  The biggest thing to watch for when searching for a mortgage is something called a Teaser Rate.  Some brokers will try to lure you into their mortgage pipeline by promising you a rate that doesn’t exist. 

Be sure to ask for a Good Faith Estimate and compare to some other lenders that are in the market.  If you compare a couple of GFE’s and one of them is way out of whack from the others… beware. 

Sometimes a low rate will be offset by higher fee’s… so when you are comparing rates, be sure to keep in mind that the key indicator of the cost of your loan… or the true cost of the money you are borrowing is shown by the Annual Percentage Rate or APR. 

You can get the APR from your Truth In Lending Statement and should be sent along with your GFE at the time of your initial quote.

When shopping for a mortgage, it is always a great idea to shop around… one convenient way to do this is by checking out LendingTree.  This is a fantastic way of getting several quotes in a short period of time.

Best of luck!

Nathan

Fill out a LendingTree Application Here…

Just wanted to add a quick RSS feed from some of my favorite mortgage and personal finance sites. These articles will be updated daily, so you are sure to find something that will help your financial situation…

Enjoy!

Nate
Do You Qualify For A Mortgage?

For my regular readers you know that I usually focus my blog on items related to Mortgage and Real Estate issues in the past, but I had a thought this morning that I wanted to write about… so please hang with me.

We have written about President Obama’s takeover of the banking industry, and you have undoubtedly read all of the news about the seizing of the auto industry by the President.

So, you may be wondering like me… what is next?

We know that when President Obama gets back to town that his new focus will be on nationalizing our health care system.

I think we all agree that our Health Care system could use some adjustments, but is letting the government take it over really the best thing for all of us?

Has anyone been to a VA hospital lately?

That should answer the question real quickly.

Nevertheless if Obama is going to control our hospitals, doctors, pharmacists, surgeons, etc… in an effort to lower the cost of medical treatments to keep Medicare and Medicaid afloat, what else will need to happen?

Hmmm… he is going to be sure that as Americans we start getting healthier and we start and eating better, right?

Sure, we all need to eat better and live a healthier lifestyle… but now it will be mandated!

How can it be mandated you ask?

Simple… Barack will strong arm the fast food industries… and if they don’t heed his “suggestions”, then they know that their businesses will be in the same kind of danger as the GM’s and Chryslers of the world.

I can see it now…

You will walk into a McDonalds, and instead of Ray Kroc’s picture hanging above the door we will have the smiling Messiah holding a bag of his low fat fries, and his new creation the “Soy Big Mac”.

And, for those have who still like their freedom and their right to choose there will also be an alternative Big Mac option made from processed turkey breast.

Think of how great this will be for the American farmers… they can all switch to soy farming and stop raising those dangerous “Ozone Destroying” Cattle!

Can’t you just envision it… another closed door meeting at The White House?

All of the big players of the fast food industry will be there… Ronald Mcdonald and his sidekick the Hamburglar,Wendy, the Chihuahua from Taco Bell. Even some military brass will be there like Captain D and Colonel Sanders.

All of these great fast food representatives will discuss with the President how much they would like to “see things change.”

In fact, Barack would probably come out of the conference room after the meeting and unveil the plan that they had all “agreed” too and the revelation that Wendy had stated in which she would hire 1,000 new cashiers as soon as the Burger Bailout was passed.

The President would then appoint a brand new Cholesterol Czar to head up the new group to ensure that the changes would be made swiftly and seamlessly.

Unfortunately, house Republicans would be upset about the new Czar as soon as the comments from the Chihuahua were leaked that he was much better qualified to oversee the group compared to a man with white makeup on his face, red nose, red hair, and yellow pants.

But the transition would continue and the benefits to our country will be enormous - not only will our children be healthier, but our farmers will be busier, and our health care costs will drop significantly!

The next time you walk into a McDonalds… take a look around.

You may just see a sign leading back to the new play area called “BarackLand” and right there on the bench will be a porcelain statue of President Obama with his legs crossed so that all of the admiring “healthy” children can climb up on his lap and have their picture taken with him.

Don’t laugh… McDonalds could be next on the list. : )

Disclaimer: Any similarities of this story to any real situation or person is purely coincidental… and totally, unfortunate.

Hey Everyone… do me a favor and email this story to your friends! Pass the word, simply copy the link in the browser and paste it in your email sending it to your 10 best friends.

Thanks!
Nate
www.NathanSoliday.com
Streamline Mortgage

Throughout the difficult economy that Americans are dealing with today, we are all looking for ways to cut costs, save money, and to make life just a little bit easier. When it comes to your mortgage, there could be a simple way to make this happen. FHA currently offers a fantastic mortgage program that very few people are aware of. This program is called the FHA Streamline Refinance and a wonderful program to tap into in this real estate market.

Here is a list of 5 benefits that the FHA Streamline Refinance can offer you:

1.) No Appraisal – The first benefit is certainly the greatest benefit. The FHA Streamline Refinance does not require an appraisal! Think about how important this fact is when you consider the local real estate market. Many people are unable to qualify for a mortgage right now because their homes have dropped in value. Luckily, if you qualify for the Streamline Refinance, this will not be an issue for you.

2.) Low Closing Costs- The second benefit is one of the key factors that any prospective mortgage shopper will want to know. This is closing costs… how much is this loan going to cost me to step into? The FHA Streamline typically has lower closing costs than the other programs on the market out there because they are less work. Simply put, the Streamline Refinance is the easiest loan product on the market today.

3.) Fast Turn Times- The third benefit ties right in with number two in that your lender can close this loan very quickly. Again, the less work a loan involves… the quicker you can wrap it up. No need to sit around and wait on the appraiser to visit your house, or your employment to be verified. Once you have qualified for an FHA loan, those qualifications carry over to the new FHA Streamline Mortgage that you are looking for.

4.) No Income Verification- The fourth benefit of the FHA Streamline Refinance brings about a voice from the past. The “No Income Verification” loan is one that was a buzz word for a few years and has pretty well gone by the wayside. But, this does still exist with the Streamline Refi. Believe it or not, your income does not need to be verified… so if your income has dropped a little like the rest of the employees throughout the country you can still qualify and tap into the low rates that are in the market today.

5.) No Asset Verification – The fifth and final benefit that I want to outline for you today with the FHA Streamline Refinance is that of no asset verification. Not only do you not have to worry about your income being verified, but you will also not be required to provide any assets or month of reserves to qualify for this program as well. As you can tell, these five benefits can mean the difference between you qualifying for the low rates in the marketplace today or not. With incomes falling, home values falling, and interest rates at all time low’s… the FHA Streamline Mortgage is proving to be a significant mortgage lifeline for many borrowers throughout the country. Do not wait around… find out if you qualify NOW!

APPLY HERE…

Even if you aren’t interested right now… be sure to send this to a friend!

Enjoy!

Nate

The author Nathan Soliday has been in involved in over $30,000,000 in Real Estate and Mortgage transactions over the past decade. Find out more about his services at www.StreamlineMortgage.org and www.NathanSoliday.com

Wow… what happened today?

The markets took a huge hit today causing interest rates to spike! And when I say spike… I do not mean a slight bump. We saw investors repricing four and five times today for the worse leaving interest rates in some cases over 1% higher than what they were 24 hours ago!

The news is that the panic could continue tomorrow…

The panic began around 1 pm today, just as I was getting back to my office at lunch. My manager and I were discussing rates and how they had really stayed within 3/8ths of a point most of the year.

Then, I walk into the office and bam… rates were shooting up…I guess I spoke way too soon.

There could be a little help from the Fed on Thursday to stop the bleeding.  I think they know as well as the rest of us that a long term spike in rates will slow down any kind of progress that has been seen in the housing market.  The fact is, rates need to stay low to keep the real estate world on somewhat steady ground.

It will be an interesting Thursday… here is an article from CNBC that explains what happened today.

CNBC

Enjoy!

Nathan

Streamline Mortgage

Ok, I had to borrow this report from www.bloomberg.com

This is really unbelievable to me… what is the source of the debt explosion in the last 6 months?

So, is he paving the way to raise taxes even more for Healthcare and everything else they are trying to push through?

Maybe it is just me, but why to we have to rush everything so quickly? There have been some major adjustments to the economy as we know it this year… why not give them a little time to kick in if they are supposed to be so great?  Why do we have to keep pushing, and pushing, and pushing…?

Will someone please call a 30 second timeout!?

Here is the article…

Obama Says U.S. Long-Term Debt Load ‘Unsustainable’ (Update2)

By Roger Runningen and Hans Nichols

May 14 (Bloomberg) — President Barack Obama, calling current deficit spending “unsustainable,” warned of skyrocketing interest rates for consumers if the U.S. continues to finance government by borrowing from other countries.

“We can’t keep on just borrowing from China,” Obama said at a town-hall meeting in Rio Rancho, New Mexico, outside Albuquerque. “We have to pay interest on that debt, and that means we are mortgaging our children’s future with more and more debt.”

Holders of U.S. debt will eventually “get tired” of buying it, causing interest rates on everything from auto loans to home mortgages to increase, Obama said. “It will have a dampening effect on our economy.”

Earlier this week, the Obama administration revised its own budget estimates and raised the projected deficit for this year to a record $1.84 trillion, up 5 percent from the February estimate. The revision for the 2010 fiscal year estimated the deficit at $1.26 trillion, up 7.4 percent from the February figure. The White House Office of Management and Budget also projected next year’s budget will end up at $3.59 trillion, compared with the $3.55 trillion it estimated previously.

Two weeks ago, the president proposed $17 billion in budget cuts, with plans to eliminate or reduce 121 federal programs. Republicans ridiculed the amount, saying that it represented one-half of 1 percent of the entire budget. They noted that Obama is seeking an $81 billion increase in other spending.

Entitlement Programs

In his New Mexico appearance, the president pledged to work with Congress to shore up entitlement programs such as Social Security and Medicare. He also said he was confident that the House and Senate would pass health-care overhaul bills by August.

“Most of what is driving us into debt is health care, so we have to drive down costs,” he said.

Obama prodded Congress to pass restrictions on credit-card issuers, saying consumers need “strong and reliable” protection from unfair practices and hidden fees.

“It’s time for reform that’s built on transparency, accountability, and mutual responsibility, values fundamental to the new foundation we seek to build for our economy,” the president said.

Obama called on Congress to send to him by May 25 a bill that would clamp down on what he says are sudden rate increases, unfair penalties and hidden fees. He also wants the measure to strengthen monitoring of credit-card companies.

House Bill

The U.S. House of Representatives passed the credit-card bill last month after adding a provision requiring banks to apply consumers’ payments to balances with the highest interest rates first. The bill also imposes limits on card interest rates and fees.

The Senate continued debating its version of the bill today. It would require credit-card companies to give 45 days’ notice before increasing an interest rate. It would prohibit retroactive rate increases on existing balances unless a consumer was 60 days late with a payment.

The president said Americans have been hooked on their credit cards and share some blame for the current system. “We have been complicit in these problems,” he said. “We have to change how we operate. These practices have only grown worse in the midst of this recession.”

The American Bankers Association, which represents card issuers, has warned lawmakers and the Obama administration against taking punitive action or setting requirements that are too stringent. Doing so, the lobby group says, would limit consumer credit and worsen a credit crunch.

Obama said that restrictions “shouldn’t diminish consumers’ access to credit.”

Uncollectible Debt

Uncollectible credit-card debt rose to 8.82 percent in February, the most in the 20 years that Moody’s Investors Service Inc. has kept records. Lawmakers have said they’re under increasing pressure from constituents to respond to rising interest rates and abrupt changes to consumers’ accounts.

Obama held a White House meeting last month with executives from the credit-card industry, including representatives from Bank of America Corp. and American Express Co. Afterward, he told reporters that credit-card issuers should be prohibited from imposing “unfair” rate increases on consumers and should offer the public credit terms that are easier to understand.

“The days of any time, any increase, anything goes — rate hike, late fees — that must end,” Obama said today at Rio Rancho High School. We’re going to require clarity and transparency from now on.”

He also said the steps he has taken to stimulate the economy and start the debate on overhauling the health-care system are beginning to take effect.

‘Beginning to Turn’

“We’ve got a long way to go before we put this recession behind us,” Obama said. “But we do know that the gears of our economy, our economic engine, are slowly beginning to turn.”

Taking questions from the audience, Obama repeated his stance that he wants legislation to overhaul the health-care system finished before the end of the year, saying it is vital to the economy.

Health-care costs are driving up the nation’s debt and burdening entitlement programs such as Medicare, the government- run insurance program for those 65 and older and the disabled.

The programs’ trustees reported May 13 that the Social Security trust fund will run out of assets in 2037, four years sooner than forecast, and Medicare’s hospital fund will run dry by 2017, two years earlier than predicted a year ago.

To contact the reporters on this story: Roger Runningen in Albuquerque at rrunningen@bloomberg.net; Hans Nichols in Washington at =1871 or hnichols2@bloomberg.net

Press Release: FHA Streamline Mortgage Allows You To Refinance With No Appraisal!

Once again during the difficult times of home buyers, home owners & home sellers… Congress is ready to make it even more difficult for all of us to obtain credit.  What a perfect time to be trying to pass legislation that will make it more difficult for todays borrowers to refinance their homes to take advantage of the low interest rates that are out there today.

HR Bill 1728 is seeking to bring on many more “knee jerk” rules for bankers and brokers to have to muddle through in the midst of a difficult housing market, and the sea of new mortgage rules and guidelines that are continually being cranked out by Fannie Mae, Freddie Mac, and FHA.

This Bill is seeking to license all mortgage lenders… and that is fine, I agree with this. But, most states have put similar laws like this in place over the past 36 months. It was neededd and it has helped weed out some of the “shady” lenders.  HR Bill 1728 also wants to make it law for borrowers to “prove” they can repay the mortgage.

Hmmm, how can that be proved?  Uh… maybe with paystubs, or w2’s, or tax returns, or asset statements, or verification of employments, or verification of deposits, or profit & loss statements from business owners……… ohhhhhh, wait… Lenders already require this!

Why do we have to make a law to say how someone can or can not lend their money. If a bank is a private corporation (yes there are a few left that haven’t been taken over yet)  then they should be able to decide who gets the money.

On the other hand… this was fine and dandy until all of the bailouts started… now the waters are muddied because we as taxpayers don’t want the lenders to go out on a limb anymore in case we have to bail them out again.

So, what needs to happen?  How about elimination of stated loans, elimination of no doc loans, elimination of subprime loans, elimination of limited doc loans…. oh wait, they have been eliminated… over a year ago. And, it didn’t take ANOTHER law to be put on the books to make this happen. 

You know what it took?  It took the banks to realize that these exotic loans were going to cost them a lot of profit, and when capitalism took over and opened the bankers eyes…. these loans disappeared!

Watch the video… the representative makes some good points.

Best of luck!

Nathan

http://www.streamlinemortgage.org

http://www.nathansoliday.com

This is a short clip from financial guru Dave Ramsey. As you know I am a huge fan of Dave (”even though I don’t do as he says” unfortunately)… so much for a huge endorsement. I am sure it will crush him…

Anyway, Dave is speaking of how your spend your time and it doesn’t matter if you are looking to buy a home or take out a mortgage you want to be sure you that you are properly educated before jumping into something.

One of the big problems with the last 4-5 years in our mortgage markets is that customers did not take the time to educate themselves on the money they were borrowing, and therefore it came back to bite many of them in the backside.

Educate your self.  If you are looking for a mortgage… you can start by checking out www.StreamlineMortgage.org to find out more information on FHA mortgage, conventional mortgages, and more great videos from the great Dave Ramsey himself.

Enjoy the video!

Nathan

http://www.streamlinemortgage.org