Posts Tagged 'Purchase Money'

Mumbo Jumbo Money Game! Where is the money?

I am trying to buy a home for 1.2 million. I have great credit and I make awesome money. I can put 20% down and I will need a loan for 960K. Can anyone out there help me?

Buyers in the mumbo jumbo arena are finding it very difficult to get financing. There are a few lenders out there that are willing to give out the money but there are a ton of strings attached. The losses that the investors have taken over the last few years has everyone gun shy. An investor does not want to tie up a million dollars in an economy where job loss, dividend cuts, and bonuses are being stripped.

Check this out directly from one of our sources today regarding what they will do for the Jumbo Market:

Max LTV is now 70% for Purchase or Cash Out.

Minimum score is now 680 to 700 depending on loan amount.

Reserves required are now from 6-12 months depending on DTI. Max DTI is 45%.

This is only for loans to 1 million. Imagine those that are trying to buy over this. Inman News posted a great article on how Bank of America is trying to buy the jumbo market. Check out the article: http://www.inman.com/news/2009/03/20/bofa-out-make-jumbo-loans  

There criteria is no different than the rest but they do not have to have Fannie Mae or Freddie Mac buy their loans. They have the ability to keep the loan in their portfolio and service the debt. The ability to service the debt as well as keep it in the portfolio gives Bank of America the option to pick and choose who they do business with and whether or not they feel comfortable with the risk.

Another Great article tackling this issue is from the Washington Post check it out:  http://www.washingtonpost.com/wp-dyn/content/article/2009/03/20/AR2009032001447.html

One may ask why are you showing information that limits your ability to do Jumbo loans? The reason is simple I specialize in Purchase money for buyers in the market to purchase a home. As you will start to see as soon as I launch Cahomestrategies.com in the middle of April, I am all about educating my buyers. To be a great educator you have to have a limited number of subjects that you know well. I know Government Purchase money and I know conventional purchase money up to the Revised temporary loan limits. I do not know Jumbo but I can point you in the right direction. The goal is to make sure that you get the highest level of service and that you end up with the right mortgage. 

Your mortgage success is my commitment!

As Always thank you for reading, 

freeman_signature 

 

House Hunting! 6 survival tips to help avoid house hunting blues.

Early this morning I got up just like I do every day and went through the morning routine. Coffee, reading, breakfast with the kids etc. You know the routine. Then I left to go to work for the day. While I was leaving the house the wierdest thhing happen to me. As I walked to the car my neigh bor was walking back to his house from the mailbox. I don’t talk to this neighbor very often. He is an older retired guy. As I was getting in the car he said to me: “Go Get Em! Don’t Stop Now.” Many of you may be asking the following question; What does this have to do with House Hunting?

Survival Tips

1) Accept the support around you – Talking only to your spouse or your colleagues about the frustrations of the offer righting stagge of the game can lead to more frustration. Talk to your professionals and ask them to explain to you why responses are so slow. Why the bank does not seem to care that you are trying to do the right thing by only submitting one offer at a time. Ask your professional to explain what may be an effective offer and why is it so hard to get in contract if it is a buyers market. Your professional should be able to help you at least understand the why of the above which will releive some of the frustration.

2) – Enjoy the Hunt – Make the house hunt a game. Enjoy the process of the whole thing. Write down items that you like from each of the houses on paper. Write down the qualities you must have and the items that you would like. Talk to your partner about how to work on the projects together and what colors you would do etc. It could very well be a long hunt. You have waited 20 plus years in most cases so dont get so excited that you forget to enjoy the process.

3) – Plan for It – If you have a written plan for the process that you fit into your normal calender then it does not disrupt ytour life so much. Schedule a time that you have specifically set aside for the viewing of homes. Schedule it like you schedule the gym or work or playdates for the kids. By doing this you avoid the feeling that the hunt has taken over your life. It helps to keep you from having the feeling that your life is off track and you are unorganized.

4) Know that you will be rejected – One of the hardest things to cope with is the rejection of an offer that you thought was a winning offer and the house was “EXACTLY” what you were looking for. Just like finding your life partner it will take work. It will take practice. It will take time. You have to lose some to learn what you don’t want and what you do want. When you do find the right partner or house in this case it is a constant work in progress. There will always be something that you would like to change or work on. You have to grow with the house and as you change you will want some things to change about the house. Don’t get discouraged by rejection get Encouraged. You are one step closer to your goal.

5) – Do not be in a hurry – You cannot rush such a major decision. You will be setting yourself up for disappointment. Just think about how often you hear a person say that they rushed into marriage and it was the wrong choice so they got divorced. Divorce is painful and can change someones life. Same with your house choice. Do not rush to get a tax credit or the interest rate that you have to have. All that will be there when the house you find comes around. whether you are 30 or 50 you did not miss the boat.

 6) – Be Emotionless – Yes, I know that this is much easier said than done. A better thing to say may be “don’t have unrealistic expectations.” Many times when you write your first offer you mentally move in. This means that when it is not accepted you have to move out or breakup. The song says “breaking up is hard to do.” If you leave out the emotion of the purchase and keep your furniture in your current residence until the loan is on record the process will feel better. I am not saying to not be excited I am simply saying to control the excitement. Contain to an acceptable level for you to handle. Try not to be too high or too low as each has its drawbacks.

Now that you know what to do in order to stay away from the House Hunting Blues I will leave you with the same words that my neighbor uttered to me this morning in the 36 degree weather “Go get em! Don’t Stop Now.”

Home Purchase:How to Survive your 30 day escrow

The market is phenomenal and the opportunity to buy a home is now. Many of you are taking advantage of the opportunity and that is amazing. Warren Buffet said, “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.  Many of you are listening.

The time-line for an escrow to close is 30 days in most cases. In the thirty calendar day period we need to get our inspections done, appraisals done, have the loan underwritten, satisfy any conditions of the loan and be understanding of the turn-times of the third party services we employ. It is a cooperative group effort. I have given you below a few tips to help you survive the 30 day escrow and sneak out a winner.

Tip #1 – Be responsive to the requests from the professionals you hired- Before you began the process of buying a home you found a few professionals that you felt would best help you through the process. Many times these professionals (Real Estate Agent and Loan Officer) do not make the rules of the game. They are there to facilitate the process. If one of these professionals request documentation or a check for a service be quick to get them what they need. Your process will stop without it.

Tip #2 – Provide the documentation requested – It is imperative to provide all of the documentation requested. Do not try to find a way around it or think that something will be sufficient if that something is not what was requested. If you do not have what was requested get with your affiliate or loan officer and come up with an alternative. Holding back information from professionals that are on your team can cost you in the long run.

Tip #3 – Remember that we are on your side – All too often we forget that we are all on the same team. A victory is represented by a closed transaction. Communication is the key to that transaction. It stems from all parties who all have a lot riding on a transaction. Small details excluded can lead to a disaster that was avoidable upfront. Tell me the property is zoned service commercial and grandfathered in so I may come up with a solution prior to the problem.

Tip #4 – Be Prepared to fight for the home you want – It is not 2003, 04, 05 and obtaining a mortgage is a little more invasive than the past. If you could fog a mirror we gave you money in the past. Now we are asking for Birth Certificates to show the child support will continue for three years. The age on the application is no longer significant. This starts with the investors and trickles down to the buyer. Nothing good comes easy in life. It will pay off to be diligent and fight for the property.

Tip #5 – Everything is time sensitive – The purchase time-line is as follows. You go into contract and the clock starts. Your loan officer orders the appraisal, gets all the signed disclosures for the property, requests the preliminary title report and a copy of the fully executed purchase contract. Our wholesalers want a complete package to look at your file. The appraisal can be anywhere from 3-5 days, preliminary title report depends solely on the title company (I have dealt with companies in Philadelphia), Fully Executed Contract which can take time if the property is bank owned 3-15 days I have waited and all of this prior to submitting the loan to underwriting. Once we have all the documentation we can submit to underwriting which can be 3-9 days to underwrite. Business Days but the weekends count on the escrow. Once the file is approved there are generally a few conditions to meet and to be reviewed once they are obtained can be 2-4 days. When they are cleared and we are able to order your loan documents this is a 2-3 day job. Then we sign and the package is returned to be reviewed for funding. The funding process is 2-3 days. So if you add up the days on the short end a perfect process can take up to 12 business days with no hold up at all. This would include 2-3 weekends at 6days and we close the escrow in 20 calender days. On the long end 34 business days and 4 weekends would be a 42 day escrow.

In summary, it would require a group effort to survive your 30 day escrow. Note that we all have the same goal in mind. Home-ownership for you as the client is our goal and what we do best. I look forward to working with all of you in the years to come.

California follows Fed with Tax Credit of their own.

See Information below and follow the link for more Information.

CALIFORNIA

The California budget bill just signed into law includes a $10K California state tax credit for all NEW homebuyers who purchase a home between March 1, 2009 and March 2010 (or until the $100 million credit allocation is used up).  The credit is in addition to the Federal tax credit and can be used $3,333 per year in 2009, 2010 and 2011 for ANY new home buyer who stays in the home at least 2 years.  This is not available to the resale market and was not even introduced in the legislation until the final vote (Senator Ashburn from Bakersfield) agreed to vote for the budget package only if the credit were included.  More information is available here: http://www.cbia.org/go/cbia/newsroom/cbia-in-the-news/homebuyer-tax-credit-passed-by-legislature/

 


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