YOUR CREDIT AND YOU

It has been a while since my last post and now that I have had time to digest all the new information available I will be posting on a weekly basis.  Alot has changed in the real estate world and the most important item on the agenda is you and your credit.  I just came across a Borrower we will call Charlie.  Charlie was a middle aged man with a good business and had owned homes prior to our current transaction and had a perfect credit score.... or so he thought.  We went through the application process where Charlie has assured me that his credit would be fine and that he wanted to start looking for a home right away.  Well, Charlie was very shocked to find out that he did not have a good score, in fact, he had NO score.  When Charlie's credit came back his profile indicated an entry of N/A for his credit score.  The reason for this?  Charlie had paid off all his debt.  He had paid his current home off and it was free and clear of any mortgage.  He had paid all of his vehicles off including those he used in his business.  He had paid off all his credit cards and allowed the accounts to close.  You would think through all this that Charlie having paid off his Fannie Mae home loan and a vehicle worth over $50,000.00 would have an excellent score.  This is one of the changes that now exists in the wonderful world of the credit bureaus.  Mystery solved.  Charlie had failed to carry a balance for the last six months leading up to his new home purchase.  With the new guidelines being used by Experian, Trans Union and Equifax you as a consumer, in order to keep a credit score must now KEEP CREDIT!  We were able to remedy Charlie's credit score and brought him back up to a 755 but it took 30 days and alot of effort.  The lesson here is to be prepared.  Prequalification for a mortgage depends on your credit score and there are very few investors out there who will take a borrower without a credit score.  It can be done but it is more expensive and alot of work.  If you are interested in reviewing your situation I am always available.  Call me anytime!  Take a lesson from Charlie and always be prepared and never ever assume anything in this market!

REFINANCE WITHOUT AN APPRAISAL!!!!!

Whether you have an FHA, VA or Conventional loan the time for refinancing is NOW!  New changes to the HARP program allow for any Fannie Mae or Freddie Mac Loan to be refinanced WITHOUT an appraisal.  FHA and VA provide a Streamline Refinance program which allows you to drop your rate without having to qualify the home with an appraisal.  NOW with the help of HARP a Conventional Fannie Mae and Freddie Mac products will operate in the same way.  You will still need to qualify as a borrower ie; credit score, income and assets however there is no loan to value consideration.  These new rules are to be implemented in March.  Please call with any questions and be sure to schedule your appointment today as this is going to create alot of interest and you don't want to get caught missing out!

SUBORDINATION AGREEMENTS AND YOU!!!!!!

Many people come to me with a problem of having a first and second mortgage which is straining their ability to refinance.  There is a solution.  The solution is to subordinate that second mortgage if you do not fit in the 97% loan to value ratio.  Most people do not know this is possible.  Many financial institutions have specific departments called "subordination departments" which approve subordination requests.  If you are in a situation such as this, call me and I will provide all the information needed to get your bank or financial institution on board so that you can refinance your first without disturbing the second.  This could be considered your SECOND chance.!!!  To apply online go to http://www.myhomeloancolorado.com/ or call me at (719)391-9817 office (719)459-2519 cell

OBAMA's New Mortgage Plan

If you are wondering what this new mortgage assistance plan looks like, check out the proposed guidelines on http://www.cnnfn.com/ .  Basically,  if you have been current and only had one thirty day late on your  mortgage in a twelve month period (1 year) and you are over 80% loan to value (what you owe / worth ), you qualify to apply for this loan.  Now going further into the guidelines your loan would have to be a Fannie Mae or a Freddie Mac product which means a conventional loan.  The maximum loan to value ratio has been removed (was 125%) which means you can qualify to merge your first and second loans together.  The exact final guidelines on this new product should be available on or after November 15, 2011.  I will keep you posted..... in the meantime, please call with any questions you might have and lets get your loan done!!!!
Dont forget you can apply online at http://www.myhomeloancolorado.com/

INTEREST RATES HIT 50 YR LOW... AGAIN!!!!!!!

Remember last November when the Federal Reserve enacted QE2 (Quantitative Easing Program)?  The fallout from that was that we had traders of the treasuries turn into "Bond Vigilanties" and they sold off 10 year notes in protest of this aid by the federal grovernment.  Bill Gross at PIMCO in Newport Beach earlier this year divested himself of the 10 Year Treasury Notes and eluded to a more prosperous GDP.  PIMCO was the largest holder of treasury debt in the United States and possibly globally next to China.  This ran the interest rates to higher levels and was seen as the economy getting stronger.  This was a BAD bet.  8 weeks ago the yield on the 10 Year Treasury Bond was 3.10.  Today's close 1.71 was the yield on the same treasury note.  What this means is that the "cat is out of the bag" and we as a global economy are not expected to fair very well over the next year due to recessionary setbacks. This is excellent news for homeowners in that the refinancing of American homes can now begin with real results.  The large banks are not lending on their retail side but the wholesale activity is still booming.  MAC5 Mortgage, Inc. is in the wholesale side of the business and we are lending.  If you cannot qualify with one lender, always try with another as all lenders are not alike.  Call me for more information and to learn more about the economic news and how it effects you visit my "Hot of the Press" links.

HOMEPATH HOMEBUYER PROGRAM

Are you wondering if there are homebuying programs that help with downpayments?  This program allows the seller to contribute 6% of the sales price to your transaction.

Call today to see if this can help you!!!!!

Getting Your Credit Report House In Order!

Alot of times folks just get overwhelmed with the idea of monitoring their credit report.  This is not so important if your consumer years are over or you pay for everything in cash.  For those of you who utilize the credit industry such as mortgage loans, car loans, student loans, unsecurred loans and the like, you need to know what is being put on your credit report.  If you have a common name such as James Anderson, you want to make sure that only your James Anderson accounts are on your credit report.  The site that can help you with one free credit report per year is found at http://www.annualcreditreport.com/.  Check out this site and if I can help you with any of the information or ways in which to get wrong information removed, call me I am here to help and have over 20 years experience in credit repair.