Alot of changes have happened in the mortgage industry over the last few weeks and we have been watching them move at a blistering pace.
To give you an example: I was working on an deal with our local rep from a lender that we use frequently. As I was explaning the scenario and the program I wanted to use, he informed me that I should get that locked in asap because they were doing away with those programs. We began to move forward in doing just that when he received a message on his blackberry that, effective immediately, they would no longer be offering these types of loans.
We simply moved the customer to another lender and made the deal work. As a broker, we have the flexibility to do that. Where others would have given up, we just keep plugging away until we have a solution that works.
While many brokers are closing shop, we are still helping loads of home buyers and owners with less than perfect credit to purchase homes and refinance out those adjustable rate mortgages. We have programs that many other lenders don't have access to. Credit scores in the 500's, 100% loans with no PMI, and great rates. We are also taking people out of high interest/adjustable rate mortgages and getting them prime rates. People are literally saving hundreds of dollars of month!
The market may be changing, but we are not. We are still offering great solutions to a large number of people that are not able to be helped by other banks and lenders. And we are doing it with a smile! Give us a call today and see what we can do for you!
Thursday, August 16, 2007
Monday, July 9, 2007
Did you know that if you opt-out from receiving credit offers through the mail that it could increase your credit score 20 points? Check it out here. Realistically, all most any family needs is a 2-3 various types of credit cards. Anything more than that and you are asking to get deeper in debt. Most people are savvy enough to shop the internet for credit offers when they need more credit, so why not save yourself the aggravation of receiving multiple credit offers each week via mail?
Tuesday, June 26, 2007
4th of July in Harrisburg, NC
Harrisburg, North Carolina is gearing up for their annual July 4th celebration. Get ready for three days of family fun! If you are in the area, this is one celebration you don't want to miss!
Here's the schedule of events:
Monday July 2nd, 2007 - Harrisburg Town Center
6:00pm - 9:00pm
Miss July 4th Pageant
Here's the schedule of events:
Monday July 2nd, 2007 - Harrisburg Town Center
6:00pm - 9:00pm
Miss July 4th Pageant
Tuesday July 3rd, 2007 - Harrisburg Park
4:00pm
Park Opens
5:00pm - 8:00pm
Battle of the Quartets
6:00pm - 9:30pm
Amusements Open
8:00pm - 10:00pm
Music by Too MUCH Sylvia
9:30pm
Amusements Close
10:00pm
Fireworks
10:30pm - 11:00pm
Music by Too MUCH Sylvia
11:00pm
Park Closes
Wednesday July 4th, 2007 - Harrisburg Park
9am
Parade begins
10:00am
Park Opens
11:00am - 3:00pm
Amusements Open
11:00am - Noon
Battle of the Bands
Noon
Prayer, National Anthem, Pledge
12:15pm
Mayor's Pro-Am Invitational Cow Milking Contest
12:30pm - 5:00pm
Battle of the Bands Continues
5:00pm - 9:30pm
Amusements Open
5:30pm - 7:30pm
Music by Deja Vu
8:00pm - 10:00pm
Music by SuperGlide
9:30pm
Amusements Close
10:00pm
Fireworks
10:30pm - 11:00pm
Music by SuperGlide
11:00pm
Celebration Ends
This is a great event that is fun for the whole family. If you decide you want to live in this great town, give us a call and let us help you get ready to begin your search!
Wednesday, June 20, 2007
Understanding Your Credit Score
There are a lot of fallacies out there when it comes to understanding your credit and what the variables are which cause your scores to fluctuate up and down. I bet if you ask 10 different people about this very mystifying topic, you’ll more than likely receive up to 10 different responses! So what’s the deal? Is figuring out your credit really THAT complicated?! The answer to that very legitimate question is both yes and no. Though the advance math algorithms used to compute your scores may be difficult to explain, truth is, when it comes right down to it, the primary philosophy has always remained the same, ‘don’t be late, and don’t borrow more than you need!’
So then, exactly who is it that determines your ability to borrow money, and just how are these mystifying credit scores calculated? I would like to first point out that the “who” who needs identifying here is YOU! Although privately owned reporting agencies are responsible for collecting and disseminating information on you (there are literally hundreds of credit reporting agencies throughout the land, all of which report to at least one of the three major credit bureaus), you are ultimately the one who controls your ability to borrow in the future. As most of you know, your credit worthiness is expressed as a 3-digit numeric score, ranging anywhere from 350 to 850. The closer your score is to 850, the more likely you are to have credit extended to you. In addition, the total amount of money accessible to you, as well as the cost of borrowing it (interest rate) will be more favorable if your score is higher. With those incentives laid before you, it’s very important to know what the factors are that boost or reduce your scores. There are 5 primary categories that determine a borrower’s credit “worthiness,” and each of them carries a different weight, 1) Payment History (35%), 2) Outstanding Balances (30%), 3) Length of Credit History (15%), 4) New Credit Established (10%), 5) Types of Credit Used (10%). Knowing how you’re being evaluated gives you a “heads up” on where you should devote more of your attention on your credit profile. In a follow-up blog, I will debunk some common credit myths, as well as offer some practical tips that will prove to be useful in improving and maintaining your credit scores...Remember to check back!
So then, exactly who is it that determines your ability to borrow money, and just how are these mystifying credit scores calculated? I would like to first point out that the “who” who needs identifying here is YOU! Although privately owned reporting agencies are responsible for collecting and disseminating information on you (there are literally hundreds of credit reporting agencies throughout the land, all of which report to at least one of the three major credit bureaus), you are ultimately the one who controls your ability to borrow in the future. As most of you know, your credit worthiness is expressed as a 3-digit numeric score, ranging anywhere from 350 to 850. The closer your score is to 850, the more likely you are to have credit extended to you. In addition, the total amount of money accessible to you, as well as the cost of borrowing it (interest rate) will be more favorable if your score is higher. With those incentives laid before you, it’s very important to know what the factors are that boost or reduce your scores. There are 5 primary categories that determine a borrower’s credit “worthiness,” and each of them carries a different weight, 1) Payment History (35%), 2) Outstanding Balances (30%), 3) Length of Credit History (15%), 4) New Credit Established (10%), 5) Types of Credit Used (10%). Knowing how you’re being evaluated gives you a “heads up” on where you should devote more of your attention on your credit profile. In a follow-up blog, I will debunk some common credit myths, as well as offer some practical tips that will prove to be useful in improving and maintaining your credit scores...Remember to check back!
Adjusting to Higher Mortgage Payments
In a recent online article, Yahoo Finance's David Bach writes,
"More than a trillion dollars in adjustable rate mortgages are scheduled to reset this year. As a result, experts predict that foreclosures could double in 2007, and reach an even higher level in 2008. With all this negative news, you have to wonder if you'll be affected. What are you doing right now to protect yourself? Are you simply waiting for something to happen? I hope not, because you need to be proactive if you have an adjustable rate mortgage.
For instance, have you called your lender to determine what your new monthly payment will be and when it will take effect? Do you have a mortgage that's currently 4.75 percent and headed to 7.5 percent when it adjusts? Do you have a clue as to when that adjustment will occur?" Read More
If you are one of the millions of Americans that have an ajustable rate mortgage set to adjust in the near future, give us a call today. We will discuss your options and help you come up with a plan that will keep you from experiencing that dreaded payment shock. You may be able to pay off some bills and even lower your monthly payments!
"More than a trillion dollars in adjustable rate mortgages are scheduled to reset this year. As a result, experts predict that foreclosures could double in 2007, and reach an even higher level in 2008. With all this negative news, you have to wonder if you'll be affected. What are you doing right now to protect yourself? Are you simply waiting for something to happen? I hope not, because you need to be proactive if you have an adjustable rate mortgage.
For instance, have you called your lender to determine what your new monthly payment will be and when it will take effect? Do you have a mortgage that's currently 4.75 percent and headed to 7.5 percent when it adjusts? Do you have a clue as to when that adjustment will occur?" Read More
If you are one of the millions of Americans that have an ajustable rate mortgage set to adjust in the near future, give us a call today. We will discuss your options and help you come up with a plan that will keep you from experiencing that dreaded payment shock. You may be able to pay off some bills and even lower your monthly payments!
Thursday, June 14, 2007
Staying Away From Loans That Are Bad For You
A recent article from CNN Money stated that, "Bad loans are contributing to a crisis in home ownership with delinquencies and foreclosures rising steeply this year."
Here at First Family, we believe that it is the loan officer's responsibility to look out for your best interests as the customer and consult with you to find the best loan scenario for you. In the end, we believe that what's best for the customer is ultimately best for us.
The article then went on to outline some practices that are deemed most troublesome. We've outlined them here so that you can know what to look out for and when to ask more questions. Some times these things can be beneficial, but when misapplied they can be abusive.
1. Prepayment penalties: When borrowers seek to pay off expensive loans early they may be hit with a fee of as much as six months of mortgage payments.
2. Failure to require escrows for taxes and insurance: These expenses add to the monthly costs of home ownership but mortgage servicers do not always require borrowers to bank the payments in escrow accounts with them. As a result, the payments may be put off, resulting in tax delinquencies or insurance coverage lapses.
3. Stated income and low-documentation lending: "So-called "liar loans" that encourage borrowers to exaggerate income to qualify for larger mortgages than they can handle.
4. Failure to give adequate consideration to a borrower's ability to repay a loan: Many loan originators have no monetary interest in loans after they the deal is done. That encourages them to approve borrowers they know, or should know, cannot afford to make the payments.
The article then goes on to conclude, "These practices are not, in themselves, abusive. Borrowers may, for example, rightly choose a loan with hefty prepayment penalties if that lowers the interest rates on their loans. The problems arise when loan originators apply these provisions indiscriminately or with predatory intent."
These facts make who you are doing business with on your loan or refinance of utmost importance. Read More Here
Here at First Family, we believe that it is the loan officer's responsibility to look out for your best interests as the customer and consult with you to find the best loan scenario for you. In the end, we believe that what's best for the customer is ultimately best for us.
The article then went on to outline some practices that are deemed most troublesome. We've outlined them here so that you can know what to look out for and when to ask more questions. Some times these things can be beneficial, but when misapplied they can be abusive.
1. Prepayment penalties: When borrowers seek to pay off expensive loans early they may be hit with a fee of as much as six months of mortgage payments.
2. Failure to require escrows for taxes and insurance: These expenses add to the monthly costs of home ownership but mortgage servicers do not always require borrowers to bank the payments in escrow accounts with them. As a result, the payments may be put off, resulting in tax delinquencies or insurance coverage lapses.
3. Stated income and low-documentation lending: "So-called "liar loans" that encourage borrowers to exaggerate income to qualify for larger mortgages than they can handle.
4. Failure to give adequate consideration to a borrower's ability to repay a loan: Many loan originators have no monetary interest in loans after they the deal is done. That encourages them to approve borrowers they know, or should know, cannot afford to make the payments.
The article then goes on to conclude, "These practices are not, in themselves, abusive. Borrowers may, for example, rightly choose a loan with hefty prepayment penalties if that lowers the interest rates on their loans. The problems arise when loan originators apply these provisions indiscriminately or with predatory intent."
These facts make who you are doing business with on your loan or refinance of utmost importance. Read More Here
Wednesday, June 13, 2007
6 Things to Do Before You Start Looking For Your New Home
Taking the time to work through these 6 steps will save you time, money, and headaches. We can help you work through all 6. Give us a call to get started.
1. Check your credit rating. Straighten out any errors before its too late.
2. Determine a comfortable monthly budget for your new purchase, including down payment and monthly payment.
3. Find a loan program that meets your needs and get pre-qualified (preferably pre-approved).
4. Choose a REALTOR® that you trust and who understands your needs. We can help you find a great one!
5. Determine what neighborhood best matches your needs.
6. Identify important features you need your new home to have.
Once you've made it through this list, you are ready to set out to find your dream home!
1. Check your credit rating. Straighten out any errors before its too late.
2. Determine a comfortable monthly budget for your new purchase, including down payment and monthly payment.
3. Find a loan program that meets your needs and get pre-qualified (preferably pre-approved).
4. Choose a REALTOR® that you trust and who understands your needs. We can help you find a great one!
5. Determine what neighborhood best matches your needs.
6. Identify important features you need your new home to have.
Once you've made it through this list, you are ready to set out to find your dream home!
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