6 Untrue Things People Say About FHA Mortgages; FHA Mortgage Rates

• FHA MORTGAGES

The FHA loan is one of the misunderstood products in the market. For years, the FHA advertised its products as loans for people "on the margins". FHA loans remain among the most flexible and rewarding products available to today's U.S. home buyers.

There are 6 common misconceptions about the FHA mortgage, though, and these falsehoods could be standing between you and a bona fide FHA loan approval. Read more below.

Click to get today's live FHA mortgage rates now.

MYTH 1 : THE FHA IS A MORTGAGE LENDER

Fact : The FHA is not a mortgage lender. It's a mortgage insurer.

The acronym "FHA" stands for Federal Housing Administration, a government agency within the U.S. Department of Housing and Urban Development. The FHA doesn't make mortgage loans to home buyers or refinancing households. Rather, the FHA provide mortgage insurance to banks, credit unions, and other lenders which make loans meeting FHA insurance standards.

The FHA reimburses lenders for a portion of incurred losses in the event that their FHA-insured loans default, or go to short sale or foreclosure.

MYTH 2 : FHA LOANS ARE FOR FIRST-TIME BUYERS ONLY

Fact : FHA loans are not for first-time buyers only. FHA loans can be used by first-time buyers and repeat buyers alike.

The FHA loan is often marketed as a product for "first-time buyers" because of its low downpayment requirements. However, last decade, many U.S. homeowners have lost home equity in the housing market downturn. These repeat buyers may have little money for downpayment -- even after the sale of their former home.

The FHA will insure mortgages for any primary residence. You don't need to be a first-time buyer.

However, if you are a first-time buyer, the FHA may reduce your mortgage insurance premiums for you. Agree to attend homeownership education classes and make your payments on-time and, via the FHA HAWK, program the agency will reduce your upfront and annual MIP.

Click for today's live FHA mortgage rates now.

MYTH 3 : FHA LOANS REQUIRE 20 PERCENT DOWNPAYMENT

Fact : FHA loans do not require a 20 percent downpayment.

For home buyers, FHA mortgages require a 3.5 percent downpayment with the fewest "strings" attached. This makes the FHA mortgage one of the most lenient mortgage types available nationwide.

There are very few credit restrictions with the FHA loan and the agency allows your 3.5% downpayment to comes as a gift from a family member, employer, charitable organization or government home-buyer program.

Other low-downpayment mortgage programs have eligibility requirements. The VA loan, for example, allows for 100% financing but you must be an eligible military borrower to use it.

The USDA Rural Development loan also allows 100% financing but the USDA program requires that your home be in a less-developed census tract; and that your household income is within certain limits.

Fannie Mae's former 3% downpayment program -- the Conventional 97 -- required higher credit scores than an FHA loan, and loan sizes were limited to $417,000. In 2014, FHA loans are available for loans of up to $729,750 for streamlined refinance.

In 2014, FHA loan limits drop.

MYTH 4 : FHA LOANS REQUIRE HIGH CREDIT SCORES

Fact : Lenders can approve FHA loans with no credit score whatsoever.

FHA loans feature some of the flexible and forgiving credit standards of any available loan type. With an FHA-backed loan, perfect credit is not required, and mortgage lenders are expressly instructed to consider a borrower's complete credit history --  not just isolated instances of late payments here and there.

You can get an FHA loan if you've recently experienced a short sale, foreclosure or bankruptcy via the FHA Back to Work program. Sometimes, a waiting period is required, but not always. Depending on your personal circumstances, you may be eligible to purchase another home using FHA financing right away.

Since 2011, FHA mortgage rates have been lower than comparable conventional products.

Note that not everyone will qualify for an FHA home loan. Borrowers with a "banged-up" history, though, have a much better chance of getting loan approval via the FHA than other government agencies.

Even if you've been turned down for other types of credit, such as an auto loan, credit card or other home loan programs, an FHA-backed loan may open the door to homeownership for you.

Click to get pre-approved for an FHA loan.

MYTH 5 : FHA LOANS ARE EXPENSIVE

Fact : FHA loans can be more expensive, or less expensive, than other loan types. The long-term cost of an FHA loan depends on your loan size, your downpayment, and your location.

The biggest cost of an FHA home loan is usually not its mortgage rate -- FHA mortgage rates are often less than comparable conventional mortgage rates via Fannie Mae and Freddie Mac. The biggest cost is FHA mortgage insurance.

FHA mortgage insurance premiums (MIP) are payments made to the FHA to insure your loan against default. MIP is how the FHA collects "dues" to keep its program available to U.S homeowners at no cost to taxpayers.

MIP is paid in two parts. The first part is paid at closing and is known as Upfront MIP. Upfront MIP is automatically added to your loan balance by the FHA so no payment is required at settlement. Upfront MIP ranges from 0.35% of your loan size to 1.5% of your loan size. Your loan traits determine your MIP cost.

The same is true for annual mortgage insurance premiums, which are paid in monthly installments along with your mortgage payment.

Annual MIP can range as high as 1.55% in high-cost areas such as Orange County, California; Potomac, Maryland; and, New York City, New York. For most borrowers, MIP is between 0.45% and 1.35% annually.

As compared to conventional loans with less than 20% downpayment, FHA MIP is sometimes more costly and sometimes less so. Your loan officer can help you compare choices.

MYTH 6 : ALL FHA LOANS ARE THE SAME

Fact : All FHA loans are not the same. There are many "types" of FHA loans, and mortgage rates vary by lender.

As an agency, the FHA publishes and maintains minimum eligibility requirements all of the loans it insures. However, FHA lenders enforce additional requirements on FHA loans, known as "investor overlays."

A sample of investor overlays includes raising the minimum FHA mortgage score requirement; or, requiring additional time since a bankruptcy, short sale, or foreclosure; or requiring employment verification for an FHA Streamline Refinance transaction.

Because of overlays, when you've been turned down for an FHA mortgage by Lender A, you should always try to apply with Lender B which may approve your FHA loan request. Plus, mortgage rates can be very different from bank-to-bank.

In addition, the FHA offers special refinance loans, home construction loans, and various benefits to eligible applicants.

CHECK YOUR FHA ELIGIBILITY TODAY

The FHA insures home loans in all 50 states, in the District of Columbia, and in many U.S. territories including Puerto Rico, Guam and the U.S. Virgin Islands. Whether you're a first-time buyer or an experienced one, an FHA-insured mortgage may be your best home financing option.

See today's FHA mortgage rates to see how FHA loans can help you. Getting rates online is fast and free and no social security number is required.

Click to get today's live FHA mortgage rates now.

Contact The Mortgage Mark with any questions!!

www.themortgagemark.com   mark@themortgagemark.com  

7 Things You Still Don’t Know About HARP 2.0, Plus How To Apply For The Mortgage

• HARP MORTGAGES

The Home Affordable Refinance Program (HARP) has reached more than 3 million households in its first 4 years. However, the program has not reached as many U.S. homeowners as it should.

The limited reach of HARP has two potential causes. The first is that the program may be too restrictive; too few people qualify. The second is that too few people choose to apply.

There are millions of HARP-eligible households nationwide which have yet to refinance.

See today's live HARP mortgage rates.

THE BASICS OF HARP 2.0

In 2009, the government launched its Home Affordable Refinance Program (HARP) as part of that year's economic stimulus program. HARP was meant to give homeowners access to a refinance despite having little or no home equity.

The eligibility test for HARP was basic.

In order to qualify for HARP, homeowners had to show their current mortgage was backed by Fannie Mae or Freddie Mac on, or prior to May 31, 2009; that their mortgage payment history was strong; and that their home's loan-to-value was 125% or lower.

Between 2009-2011, HARP reached close to one million households. It would have reached more than one million households, it was determined, if not for the 125% loan-to-value restriction, and for a specific HARP clause which increased a mortgage lender's typical mortgage liabilities.

So, to reach more households, HARP 2.0 was released.

HARP 20 was an improvement upon HARP 1.0. It removed the 125% loan-to-value restriction which helped homeowners in hard-hit states such as Florida, Nevada and California get access to the HARP program. It also removed the lender liability clause which had slowed HARP's adoption.

Program changes were a hit. HARP 2.0 closed as many loans in its first 12 months as the original HARP 1.0 closed in its first three years.

However, even today, HARP is closing fewer loans than it should. HARP misconceptions are limiting the program's reach.

Click here to get HARP mortgage rates.

WHAT YOU DON'T KNOW ABOUT HARP 2.0

The government is going on the offensive.

Fannie Mae and Freddie Mac recently launched a HARP public relations campaign meant to educate U.S. homeowner about the HARP program's benefits. The agencies believe that the majority of HARP-eligible homeowners are either unaware that the program exists, don't know about the program benefits, or both.

This website receives a lot of emails from homeowners wondering about HARP and whether they're eligible to refinance. Here are some of the common HARP misconceptions.

I can't refinance with HARP if I have a second mortgage.

Yes, you can refinance with HARP if you have a second mortgage. However, in accordance with HARP guidelines, you cannot combine your two mortgages in a cash-out refinance.

To refinance your first mortgage via HARP, but leave your second mortgage unchanged, your second mortgage lender will agree to subordinate its mortgage, which is a fancy way of saying that second mortgage lender will give permission for you to replace the existing first lien on title. 

I have no equity in my home so I can't refinance with HARP.

Yes, you can refinance your home via HARP if you have no equity. That's exactly the premise of the program! Via HARP 2.0, homeowners can refinance no matter how far underwater they are with their mortgage. This is among the reasons why the HARP refinance has been so popular in Las Vegas, Nevada; Phoenix, Arizona; and other hard-hit areas. HARP is the "underwater mortgage program" -- of course you can use it when you have no home equity. 

I was already turned down for HARP. I won't get approved if I apply for HARP again.

Even if you've been turned down for HARP in the past, it can make sense to apply for HARP again. This is because HARP-approved lenders often use in-house variations of the official, government-issued HARP guidelines. These variations differ from bank-to-bank. If you were turned down by Wells Fargo, for example, you may be able to get approved by Quicken. If at first you don't succeed, apply, apply again.

I can't refinance my home via HARP because it's not my primary residence.

HARP 2.0 can be used to refinance homes of any occupancy type. Investment properties can be refinanced via HARP, and so can second homes and vacation properties. HARP can be used in all 50 states, the District of Columbia, and all U.S. territories. 

I can't use HARP because my lender doesn't offer it.

Not all lenders offer The Home Affordable Refinance Program; this is true. However, U.S. homeowners are free to refinance with any HARP-approved lender. This freedom was among the improvements of HARP 2.0. There are thousands of lenders making HARP 2.0 mortgages. You can get mortgage rates for a HARP loan here.

I can't use HARP because I am not behind on my mortgage payments.

The HARP refinance program is not meant for homeowners who are behind or delinquent with their mortgage payments. HARP can only be used for homeowners who are current. The HARP program is not meant to save a person's home from foreclosure. Homeowners facing difficulty with payment should contact their loan servicer immediately.

I can't use HARP because my loan has mortgage insurance.

You can use HARP 2.0 for loans with existing private mortgage insurance (PMI). This is a change from HARP 1.0 and applies to loans with both borrower-paid mortgage insurance (BPMI) and lender-paid mortgage insurance (LPMI).  However, it can be difficult to find banks to offer a PMI program. If you try to refinance your loan with PMI and you are turned down by a lender, apply again somewhere else. You may get a better outcome.

ARE YOU HARP 2.0-ELIGIBLE BUT DON'T KNOW IT?

There are an estimated remaining 4-plus million households nationwide who could refinance via HARP, but haven't. Some of these 4 million households are unaware that HARP 2.0 exists. Others are unaware that they'd qualify.

Check whether you'd qualify for HARP 2.0 and see today's mortgages. Get started online. It's fast, and free, and there's no obligation.

Click here to get started with HARP.

Contact The Mortgage Mark with any questions!!!   www.themortgagemark.com  

10 Bona Fide Benefits Of Taking A VA Loan, Plus Today’s VA Mortgage Rates

• VA MORTGAGES

Multiple loan "programs" exist for today's home buyers. Some programs are backed by the U.S. government and some are backed by individual lenders.

And, although each can you meet your specific mortgage loan needs, one loan type stands apart for its combination of low rates, aggressive underwriting and secondary benefits.

That program is the VA loan from the Department of Veterans Affairs. VA loans are a key part of the 2014 housing market.

Click here for VA mortgage rates.

VA LOAN : BETTER THAN FHA AND CONVENTIONAL?

Backed by the U.S. Department of Veterans Affairs, VA loans are designed to help active-duty military personnel, veterans and certain other groups become homeowners at an affordable cost. The VA loan asks for no down payment, requires no mortgage insurance, allows flexible guidelines for qualification among its many other advantages.

Here's an overview of the 10 biggest benefits of a VA home loan.

1. NO DOWNPAYMENT

Most home loan programs require you to make at least a small downpayment to buy a home. The VA home loan is an exception. Rather than paying 5, 10, 20 percent or more of the home's purchase price upfront in cash, with a VA loan you can finance up to 100 percent of the purchase price. The VA loan is a true no-money-down opportunity.

2. NO MORTGAGE INSURANCE

Typically, lenders require you to pay for mortgage insurance if you make a downpayment that's less than 20 percent. This insurance, referred to as private mortgage insurance (PMI) for a conventional loan or a mortgage insurance premium (MIP) for an FHA loan, protects the lender in the event that you default on your loan. But a VA loan neither a no down payment nor mortgage insurance. That makes this a VA-backed mortgage very affordable upfront and over time.

3. U.S. GOVERNMENT GUARANTEE

There's a reason why the VA loan comes with such favorable terms. The federal government guarantees that a portion of the loan will be repaid to the lender even if you're unable to make monthly payments for whatever reason. This guarantee encourages and enables lenders to offer VA loans with exceptionally attractive terms to borrowers that want them.

4. ABILITY TO SHOP AND COMPARE

VA loans are neither originated nor funded by the VA. Furthermore, mortgage rates for VA loans aren't set by the VA itself. Instead, VA loans are offered by U.S. banks, savings-and-loans institutions, credit unions and mortgage lenders -- each of which sets its own VA loan rates and fees. This means you can shop around and compare loan offers and still choose the VA loan that works best for your budget.

5. NO PREPAYMENT PENALTY

A VA loan won't restrict your right to sell your home if you decide you no longer want to own it. There’s no prepayment penalty or early-exit fee no matter within what time frame you decide to sell your home. Furthermore, there are no restrictions regarding a refinance of your VA loan. You can refinance your existing VA loan into another VA loan via the agency's Interest Rate Reduction Refinance Loan (IRRRL) program or switch into a non-VA loan at any time.

6. LOAN OPTIONS

A VA loan can have a fixed rate or an adjustable rate. It can be used to buy a house, condo, new-built home, manufactured home, duplex or other types of properties. Or it can be used to refinance your existing mortgage, make repairs or improvement to your home or even make your home more energy efficient. The choices are yours. A VA-approved lender can help you decide.

7. EASY TO QUALIFY

Like all mortgage types, VA loans require specific documentation, an acceptable credit history and sufficient income to make your monthly payments. But, as compared to other loan programs, VA loan guidelines tend to be more flexible. This is made possible because of the VA loan guaranty. The Department of Veterans Affairs genuinely wants to make it easier for you to buy a home or refinance.

8. LOWER CLOSING COSTS

The VA limits the closing costs lenders can charge to VA loan applicants. This is another way that a VA loan can be more affordable than other types of loans. Money saved can be used for furniture, moving costs, home improvements or anything else.

9. FUNDING FEE FLEXIBILITY

VA loans require a "funding fee", an upfront cost based on your loan amount, your type of eligible service, your down payment size plus other factors. Funding fees don't need to be paid as cash, though. The VA allows it to be financed with the loan, so nothing is due at closing. And not all VA borrowers will pay it. VA funding fees are normally waived for veterans who receive VA disability compensation and for unmarried surviving spouses of veterans who died in service or as a result of a service-connected disability.

10. ASSUMABLE FINANCING

Most VA loans are "assumable," which means you can transfer your VA loan to a future home buyer if that person is also VA-eligible. Assumable loans can be a huge benefit when you sell your home -- especially in a rising mortgage rate environment. If your home loan has today's low rate and market rates rise in the future, the assumption features of your VA become even more valuable.

Click here for VA mortgage rates.

COMPARE VA MORTGAGE RATES 

The eligibility list for a VA loan is long. Classes and classes of servicepersons and their families are eligible.

Whether you're an active-duty serviceperson, a veteran, a member of the National Guard, a Reservist or surviving spouse of a veteran; or if you're a cadet at the U.S. Military, Air Force or Coast Guard Academy, midshipman at the U.S. Naval Academy or officer at the National Oceanic & Atmospheric Administration, you may be eligible for a VA loan -- plus all the benefits that come with it.

See today's VA mortgage rates and compare your VA offers. 

Contact The Mortgage Mark with any questions!!

mark@themortgagemark.com   www.themortgagemark.com 

How To Reduce Your Remaining Mortgage Years Via Refinance To Lower Mortgage Rates

Mortgage rates are at a 12-month low. It's a terrific time to refinance. But what if you don't want to reset your loan to 30 years?

The good news is that you don't have to. With a little bit of savvy, you can take advantage of today's mortgage rates and shorten the number of years remaining on your loan. It all comes down to a financial term known as amortization (ah-mor-ti-ZAY-shun).

Amortization (ah-mor-ti-ZAY-shun) is the schedule by which your loan balance goes to $0 over time; and it can be manipulated for your benefit. You're the homeowner, and you're in control.

Click here to skip to today's mortgage rates.

A 30-Year Mortgage Schedule Favors Your Bank

When a bank sets your monthly principal + interest mortgage payment, it's based on the principles of amortization. With a mortgage, amortization tends to favor the bank -- the early years of a home loan are very heavy on interest payments and very low on principal.

If you've ever looked at your mortgage statement after a few years and thought, "I haven't paid this thing down a bit!", it's because of amortization. This is true for all fixed loan types, too, including the 15-year fixed-rate mortgage; a 20-year fixed-rate mortgage; and, the 30-year fixed-rate mortgage.

For example, look at these numbers on a fixed-rate amortization schedule.

If you were to borrow $300,000 from the bank at a mortgage rate of 4%, after 10 years, here is how much you would still owe given various mortgage products :

• A 15-year mortgage has $123,000 remaining of the original loan balance
• A 20-year mortgage has $180,000 remaining of the original loan balance
• A 30-year mortgage has $237,000 remaining of the original loan balance

With the 15-year home loan, you would have made a significant dent in the original loan balance. With the 30-year mortgage, by contrast, you've barely paid down anything at all.

At 4 percent, it takes 19 years, 4 months to pay a 30-year mortgage to pay down by half. This is decidedly bank-friendly.

It's also one reason why 15-year mortgages are so popular -- homeowners with 15-year loan pay much less mortgage interest over time as compared to homeowners with 30-year loans or 20-year loans.

Click to compare today's live mortgage rates.

You're Not Stuck With A 30-Year Fixed Rate Mortgage

The good news is that you're not "stuck" with a 30-year mortgage and its high costs of interest -- especially with current mortgage rates are as low as they are today.

Your first option to save on mortgage interest is to refinance into a new, shorter loan term.

If your initial mortgage was a 30-year fixed rate mortgage, for example, you can choose to lower your term to, say, 20 years or 15 years. Reducing the number of years in your mortgage "accelerates" your amortization and the loan pays off quicker.

When you switch to a shorter loan term, you also get avoid "starting your mortgage over" for another 30 years. You get a new loan, with a shorter term. You'll save big on your long-term interest costs.

At today's mortgage rates, homeowners using a 15-year mortgage will pay 65% less interest than homeowners using a thirty.

However, payments on a 15-year mortgage can be substantially higher as compared to longer-lengthed loans. This is because you're compressing the repayment period into a lesser number of years.

With a 15-year mortgage, your monthly mortgage obligation may jump as much as forty percent. For many U.S. households, that kind of increase can be too much to stomach. This is why some homeowners skip the refinance and opt to "prepay" their mortgage instead.

To prepay your mortgage means to send "extra" payments to your lender each month, chipping away at the amount you owe faster than your amortization schedule prescribes.

For example, if your mortgage payment is $1,750 per month, and you send $2,000 to your lender, you've reduced your amount owed by $250. 

Prepaying a mortgage shorten your loan term because the loan's balance will get to zero more quickly. The more you prepay, the more money you'll save.

Also, you can prepay nearly all mortgages with penalty. Government-backed mortgages -- which includes all FHA loans, VA loans, USDA loans and conventional loans -- come with no prepayment penalty ever.  

Click for today's live mortgage rates.

"Refinance-To-Prepay" On Your Mortgage

There's a third way to reduce your mortgage interest paid. It's called "refinance-to-prepay".

Refinance-to-prepay is exactly what it sounds like -- you refinance to a lower rate and prepay on your loan. It's a plan that can give the best of both options -- access to today's low mortgage rates, plus a quicker amortization schedule.

Here's how to refinance-to-prepay, and save in interest costs :

1. Refinance to a lower rate on your same mortgage program (e.g. 30-year fixed)
2. Take your monthly savings and apply it to your new loan monthly as "extra payment"
3. Stay on plan until your loan is paid in full

The refinance-to-prepay system works because, although your mortgage rate is lower, you're making the same payment to the bank each month. There's less interest being paid at the same time that you're "accelerating" your loan payback.

With refinance-to-prepay, you can "restart" your loan to 30 years but then pay it off faster than if you had never refinanced at all. It's a trick of math that plays on bank amortization schedules.

Here's a real life example of how refinance-to-prepay can work.

Say your current loan balance is $400,000 and you're refinancing from the 4.75% mortgage rate you took two years ago to a zero-closing cost 4.00% mortgage rate available today. With the refinance, your payment drops $246 per month so you take that $246 and send it to your lender along with your "regular" payment.

By prepaying your mortgage principal in this way, your "new" 30-year loan will pay off in full in just 24 years --  four years faster than if you hadn't refinanced at all. Those four years of "no payments" save $90,000.

Now, this example assumed a zero-closing cost mortgage at 4.00 percent. Even with closing costs, the maths works out. You're spending a little, and saving a lot.

Refinance Without "Losing Years"

With mortgage rates at 12-month lows, it's a good time to refinance. There are hundreds of billions of outstanding U.S. mortgages with rates over 5%. Opportunities are big today -- and you can refinance without "losing years" on your mortgage.

Compare today's low rates to your existing mortgage. See how many years -- and how much interest -- you can save off your mortgage. Rates are available online at no cost, with no obligation to proceed, and with no social security number required to get started.

Click to get today's live rates. 

Contact The Mortgage Mark with any questions!!   www.themortgagemark.com  

mark@themortgagemark.com  

THE 10 COMMANDMENTS WHEN APPLYING FOR A MORTGAGE LOAN

Standard

Many individuals do not realize that even the slightest change in your financial situation after you apply for a mortgage can delay or ultimately jeopardize the approval of your loan.

In my experience as a loan officer, I have seen each and every one of these commandments broken.  Unfortunately, some of those had the judge (I mean the underwriter) come down upon them, resulting in their loan being denied.

If you’re going through (or about to start) the mortgage application process, please take each of these ten commandments to heart.

1. Thou shalt not change jobs, becoming self-employed, or quit your job.This probably goes without saying, but any change in employment can cause a major issue in the approval of your loan.  This can even mean a change in your job position or type of pay at the same employer (i.e. from hourly pay to commission pay).  While it may be an ‘upward’ move with more potential income, it may just derail your loan.
   Hint: Just stay put ’til you’ve completed your closing.
2. Thou shalt not buy a car, truck, van, motorcycle, ATV, or any other vehicle.In most cases, buying a new vehicle involves numerous credit inquiries, a new loan that must have the new terms verified, and if it’s a trade in, sometimes it takes weeks for the old loan to be paid off.  And unless you qualify with both of these payments, then this may just delay your loan closing.
   Hint: Don’t buy a new vehicle, or you may be living in it.
3. Thou shalt not use your credit cards excessively or let ANY of your payments fall behind.
   Current regulations require lenders to not just check your credit at the initial application, but also at closing.  This is done to confirm there have been no major changes in you debts.  If you had a $100 balance with a $10 minimum payment on that Wal-Mart credit card, but now you’ve went out and purchased new patio furniture, some area rugs, and that new 70″ flat screen TV and now you owe $1500 with a $100 minimum payment, that could be enough to cause your file to have to go back to an underwriter for approval, or worse, your file could be denied.
   Hint: Don’t make any changes in the normal use of your credit cards and do NOT forget to make the minimum required payments.
4. Thou shalt not spend the money you have set aside for downpayment or closing costs.I mean, does this really need to be said?  Unfortunately, yes.  I’ve seen it happen.
   Hint: Your assets required for closing will be verified and scrutinized during the approval process.  Be prepared to explain and document large deposits that are not normal paycheck deposits.
5. Thou shalt not buy furniture, appliances, or household items before you buyer your new home.This goes a lot back to #3 and #4.  Sometimes even the slightest change in your assets or debt load could delay or derail your closing.
   Hint: You can do without that new bedroom suit or refrigerator for just a few more days…you’ve made it this long, right?
6. Thou shalt not originate or allow new inquiries on your credit report.As I explained on #3, your lender will likely re-check your credit the day of your closing.  Any and all new inquiries will have to be explained and sometimes even verified by the creditor themselves to prove in fact no new accounts were opened.  Sometimes you’ll need an inquiry to obtain homeowners insurance or possibly set up accounts with a local utility company or satellite provider, but these types are easily explained.  However, any inquiries associated with credit cards, automobiles, and especially mortgage inquires, must be explained.
   Hint: Be very cautious with any inquiries or be very prepared to delay your closing a few days.
7. Thou shalt not make any large OR ‘cash only’ deposits into your bank accounts or transfer money between accounts.I’ll continue that statement by adding “without first consulting your loan officer.”  Honestly, every lender has a different way of handling these types of non-payroll deposits.  Ours rule, for example, is anything over $500 that is not a direct deposit or payroll related must be explained, sourced, and documented.  And depositing cash is a NO-NO!  We will review at least the past 60 days of account history on your bank statements.  Let’s say you need $5000 to close.  But a week before the application, you deposited $800 worth of cash you had stuffed under your mattress at home.  It’s going to basically be impossible to source and verify where that money came from, so while you really have the money in your account, it will be deducted from the “available balance” that we use to approve your loan.  So now, you have to have $5800 in your account to get to the actual amount of $5000 after the $800 is deducted.  Coming up with even more additional money for closing may be tough.
   Hint: Cash is NOT king.
8. Thou shalt not change bank accounts.This is using the “less is more” approach.  Changing bank accounts require additional verification of not only the account the money is now in, but also the previous account the money may have been withdrawn from.  If the amounts to match up exactly from one to the other, it may spell trouble for your approval.
   Hint: This is getting redundant, I know…but just wait!
9. Thou shalt not co-sign for anyone, or allow authorized users to charge on your credit accounts.
   The quickest  thing that can delay or deny your loan approval will be changes in liabilities.  Just imagine, your 16 year old son is fired up about his new truck.  He has a local gas company credit card that he runs up $500 in gas in 2 weeks carting his friends around the city.  This can change your balances, your FICO score, and your minimum payment.
   Hint: Put everyone on notice that all credit cards are temporarily ‘canceled’ until you give them the ‘ok.’
10. Thou shalt not omit any debts or liabilities from your loan application.
    This is a major issue and could be viewed as mortgage fraud.  If convicted, you could face 30 years in prison and up to $1,000,000 in fines.
    Hint: The truth shall set you free.  Trust me, it’s not worth the alternative.

Breaking any one of these commandments could result in your loan being denied.  A good rule of thumb is to always notify your loan officer immediately if any of these issues come up during your loan application.  They can tell you how each broken commandment needs to be addressed.

Following these 10 Commandments will lead you to the promise land of LOAN APPROVAL!

If you have questions, please leave a comment below.  You can also contact me with any personal questions.

Mark@themortgagemark.com    www.themortgagemark.com 

How to Fight High Property Taxes

 

 

 

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DATE:APRIL 9, 2014 | CATEGORY:TIPS & ADVICE | AUTHOR:MARY BOONE 

Death and taxes. Benjamin Franklin espoused their certainty, but it’s doubtful even he knew how difficult it would be to avoid the latter – especially property taxes.

No matter where you live in the United States, if you own real estate, you must pay property taxes. According to a recent study by Zillow, a U.S. property owner pays an average of around $2,800, or approximately 1.4 percent of their home’s value each year in property taxes. Of course, that “average” figure indicates some homeowners pay more while others pay less. The counties with the highest averages are Westchester County, NY ($14,829 per year); Essex County, NY ($12,051 per year) and Bergen County, NJ ($11,172 per year).

Do you know how much you pay in property taxes? Look up your home on Zillow – the information is there on your home details page.

Deciphering how property tax rates are set is not easy. There is no single formula used by states and counties to calculate property taxes. In fact, more than 13,500 local governments have the authority to assess property taxes; all states allow local governments to set their own tax rates even though many states place limits on their rates.

Still, understanding the process is your first step toward knowing whether or not you’re paying too much in property taxes. Start by visiting your local assessor’s office to find out how they assess properties. Ask how you might go about appealing your assessment. Most municipalities require property owners to lodge their appeal within 60 days of when annual assessments are mailed; check with local authorities for details regarding your city or county and get copies of the forms you’ll need to complete. Homeowners cannot contest their property tax rates, but they may be able to lower the assessed value of their home by filing an appeal.

Once you have a basic understanding of the assessment process, you’ll want to do your due diligence to determine whether you’re being overtaxed:

Fact check

Get your property card from your local assessor’s office; in some municipalities, these documents can be accessed online. Your property card – also known as a property’s “working papers” or “worksheet” – includes factors used to determine your home’s assessed value: square footage, lot size, number of bedrooms and bathrooms, etc. If, for example, the assessor’s office believes your home includes a three-car garage but no such feature exists, it’s likely your assessment is incorrect.

Know your neighborhood

Most cities and counties assess homes on a one- to three-year cycle. It’s natural, then, that a home’s assessed value will fail to keep up with changes in local real estate prices. A local decline in home prices could leave you paying more than your fair share of property taxes.

When determining whether your home has been properly assessed, you’ll need to know the assessment of comparable homes – same size, same location, same amenities. Using information available from your assessor or on Zillow, search for at least five comparable homes that have sold in your neighborhood within the past year. If you discover that your home is valued at least 5 percent to 10 percent higher than comparable properties, you may be able to file a successful appeal.

Present your case

The National Taxpayers Union estimates that up to 60 percent of U.S. properties are overassessed. If you believe yours has been, gather documents that support your case and ask for an informal meeting with a representative from your local assessor’s office. If the assessor won’t agree to a meeting, or if your assessment isn’t adjusted as a result of the meeting, you may want to file a formal appeal.

The appeals process varies greatly, but most municipalities require appeals to be submitted in writing along with evidence that supports the request for a reassessment. Once a formal appeal has been filed, a decision generally is handed down within two to four weeks. If you aren’t successful, you may be able to take your appeal to a state review board. If you’re still not getting the answer you want, you may be able to take your case to court – at which time you need to consider whether court fees outweigh any potential reduction in property taxes.