FHA Mortgage Expert - Tri-State Area - New Jersey/PA/Delaware

 
Nehemiah, AmeriDream, and any other down payment assistance program(s) could be ending by the end of March. March 28th to be exact. Does this mean time is running out? It certainly looks like it. If you are in the process with a lender now, you better be on top of them, that they have your loan approved.  Better yet, make sure that they have your money registered with the Nehemiah program or the AmeriDream program.

Is there any daylight showing in regards to what Judge Friedman ruled back in October 2007? Latest on HUD Rule  --  Insert from the link -- Judge Friedman heard final arguments in another downpayment assistance company’s suit against HUD. The judge has taken the case under advisement and will have a decision by February 29, 2008.

For more information on Nehemiah --  http://www.getdownpayment.com/ 

The American Dream.....  it's attainable with the right resources and with the right loan officer. It is harder for the average person to save money in today's economy, which makes programs like Nehemiah and AmeriDream, very important to many homebuyers.

The Nehemiah program is the most used of all the down payment assistance programs.  Nehemiah loans have been a big reason why over 200,000 families have been able to obtain their Dream Home. Stand up and let congress and others know that they should not take this away from the average consumer.

Overall, I would be glad to assist anyone looking to buy a home under the Nehemiah program or the AmeriDream program. We'll at least know if it will be continued soon. But if you are actually serious about buying and had been planning to use the Nehemiah program to assist you in getting into your dream home, don't let it stop you now. There is still time, that's if you actually found a house or if you are making an offer. My guess?  I think the judge will allow such companies as Nehemiah and AmeriDream to keep operating after March 28, 2008. Don't be the one that ran out of time or missed the boat.

For more information, I wrote a more detailed blog on Nehemiah and how to get into a house with little or no monies.  You can use FHA Nehemiah and these other down payment assistance programs for both FHA mortgages and conventional loans.  Do you truly think that FHA/HUD would want to see these programs disappear?  No...

• Creative FHA financing -- No money out of pocket from the buyer!!! -- Part 1

• HUD / Down Payment Assistance programs -- DPA & Nehemiah -- Alive for a while....

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For more information on FHA loans, please go to this link. The FHA Expert

For more information on how you can obtain your dream home, please click here : Mortgage Financing Options

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!

 
Copyright © 2008  by Jeff Belonger

The mortgage process, whether you are applying for a FHA mortgage or a convnetional mortgage, the process should not be as difficult as it appears more times than none. After over 15 1/2 years in the mortgage industry, I just don't understand why some loan officers just don't learn the basics, instead of trying to sell rate and fees. They get so caught up in this, oversell the rate and undercut fees, that they lose sight of the service part of the mortgage process. And the basics of knowing what questions to ask. 

As I mentioned in Part 1, the Purchase CHECKLIST is so critical. This is why it's so important to talk to a loan officer before you even set out to purchase a home. I can't tell you how many consumers that I have talked to in the last 6 months that started to look, fell in love with a home, and then seeked a lender. The problem with this is that some of these loan officers that you speak to are so inexperienced, and when they hear that you have already found your dream home, they are more worried about getting you into their door than asking the basic questions.

What should be one important question that every loan officer should ask you in the first several minutes?  What kind of mortgage payment can you afford and not what you can qualify for. The second most important question should be asking what your short term and long term goals are. Do you have kids?  Want kids?  Kids going to college?  And so much more. Then they should get into your credit and assets. The problem here is that the first question that so many ask is, "how's your credit". As I mentioned, this should not be the first question. Now, this is just my opinion, but this is based on over 15 years of experience and knowledge in the mortgage industry.

Overall, if your loan officer tries to take you from point A to point C without truly covering what I mentioned above, then you will either be placed into a mortgage that is not right for you and/or that your settlement/closing on your new home or that refinance will be a very bad experience. That's if you are even lucky to have a closing. I have seen many mortgages that were killed or denied the day of, because the loan officer didn't do their job. And in regards to this statement, don't let anyone fool you. Deals aren't killed or denied the day of settlement. This is usually known a few weeks into the process, that's if they got the required documentation upfront and that their processor is on top of their game. Yes, the mortgage process is based on a team concept, starting with your loan officer as the General. The one that if they know what they are doing, can decide at that time if you could even get a mortgage. And if they are unsure, they can go right to their underwriter to go over your scenario with that person. Communication is so critical.

For more information to know about as you shop for a lender or a real estate agent, please read this post, What kind of red flags should your be aware of ????  And the chart above just gives you a basic idea of how your process should start and end. 

The Mortgage Process Series :

• Mortgage Process - Purchase CHECKLIST prior to purchasing a home - Part 1 of 3
  

• Good Faith Estimate - Pre-Approved or Pre-Qualified -- The Mortgage Process - Part 2 of 3

• FHA or Convnetional loans -- The Mortgage Process - Part 3 of 3

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For more information on FHA loans, please go to this link. The FHA Expert

For more information on how you can obtain your dream home, please click here : Mortgage Financing Options

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!

 
Copyright © 2008  by Jeff Belonger

The good old Good Faith Estimate....  it could sometimes be your worst enemy, depending on the loan officer and how they actually fill it out.

It doesn't matter if you are applying for a FHA mortgage or a conventional mortgage, all good faith estimates should be accurate. I have seen many loan officers low ball their estimates not only on their points, but on the 3rd party charges. This can make shopping for a mortgage frustrating and more difficult.

I just had a client recently compare my good faith estimate with that of another lender. My title charges were about $500 more in costs. But I knew my estimate was alot closer because all title companies basically charge the same amount. The lesson to learn here? Please read below.

It doesn't matter if you are applying for a FHA, conventional, VA, or subprime mortgage. The Good Faith Estimate (GFE) is very critical when shopping for a mortgage. But you have to be careful because more than 75% of this piece of paper is an estimate. Some loan officers will cut corners just to make their total estimate look cheaper.

Three things that you want to look for when you first look at your GFE.

• Look at the loan program and make sure this is the program that you want. If it was an adjustable, it would say differently.  (Yellow highlight --  Upper right hand corner)
  
• Look at the rate. Make sure this is what you discussed when speaking to your loan officer. (Up top, middle of page, yellow highlight)
  
• The 3rd issue are the fees. Everything in section 801 to 815 would be the lenders fees or anything the lender is going to charge you. Don't ever be fooled if one lenders fee is higher than the other. You still need to compare the rate. You also need to speak to your accountant to find out what can be written off. (left hand column with 10 to 15 highlighted items)

(Speak to your tax accountant to make sure what can be written off and what can't. But typically just the points can be written off)

What not to do when comparing good faith estimates.

• Don't compare total fees at bottom of the GFE, which I will explain why below.

• Just don't compare the APR of the loan. (explain below in a link)
  

Conclusion :  Again, don't always shop and ask for total fees. Compare the lender's fees the most. In regards to your escrows, each state is different. Your property taxes are paid either quarterly, twice a year, or once a year. I have seen some loan officers sometimes not show enough for your escrows in regards to the prperty taxes.  It's very easy for a loan officer to say at closing, "these aren't my fees, so all I can do is give an estimate."  Word of advice, yes, it's an estimate. But if they have been doing this for sometime, they should have a good idea of these other fees. Also, if they don't know, they should be asking the title company or someone else. Lastly, just be careful, because some of these figures are not worth the paper that they are written on. It's just that, an estimate based on good faith. Make sure that you always speak with a Mortgage Professional.  Just be careful not to shop yourself right out of the market. 

Lastly, if you have 3 good faith estimates in front of you, always go back to the person that you had the best feeling with, that you are comfortable the most with, and share the other 2 with them. Just don't run to the person with the best rate and or fees. I always like my clients to come back to me no matter what. I might be able to point something out to them. And this topic must be discussed when receiving a GFE, otherwise this GFE doesn't mean squat.  Mortgage Rates -- Locking or Floating -- Part 2 of 2

Reminder : Don't always compare the APR also. APR vs Rate -- Understanding the difference......  And keep in mind, rates change daily. Don't take a week to shop. And if someone takes more than a day to get you a good faith estimate, this might be a red flag. If I am not really busy, it would take me a few hours. If I am really busy, less than 24 hours. If it takes a few days, run, don't walk from this individual. 

Lastly, there is a difference between a Pre-Approval and a Pre-Qualification letter.

The Mortgage Process Series :

• Mortgage Process - Purchase CHECKLIST prior to purchasing a home - Part 1 of 3
  

• Good Faith Estimate - Pre-Approved or Pre-Qualified -- The Mortgage Process - Part 2 of 3

• FHA or Convnetional loans -- The Mortgage Process - Part 3 of 3

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For more information on FHA loans, please go to this link. The FHA Expert

For more information on how you can obtain your dream home, please click here : Mortgage Financing Options

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!

 
Copyright © 2008  by Jeff Belonger

Okay, the stimulus package has been approved.  The President signed the Stimulus Package about a week ago. Part of this bill included HR 5140, which talks about the new FHA loan limits. 

The FHA loan limits are suppose to hit a ceiling of $729,750, but when will this go into effect? There were some rumors that it would not be until around mid-March that this would go into effect. There are some rumors which state that this bill won't go into effect until late July. And two other unconfirmed reports state that it will be permanent and another stating that it will only last until the end of December of 2008. 

Now, I know that they said the new Fannie Mae and Freddie Mac limits were going to expire at the end of 2008, but now the FHA limits? What's worse is that you can't really find the correct information. HUD doesn't even have any posted as of yet, what the real deal is.

Overall, what I don't understand is that Bill HR 5140 has been in Congress for almost 2 years now. It finally gets signed, but nothing has been put on paper for the investors to start originating these FHA loans with the new limits. You would have though that when they finally agreed on the new ceiling limit of $729,750, that this would have been ready. I know it can take some time within the government. But are we in a stalling period? The FHA reform in my opinion has been a huge disappointment. And we can't forget, that there will be risk base pricing attached to this new bill. There will be different MIP percentages depending on your credit scores and LTV's. 

I had to write about this because I have been getting numerous e-mails and phone calls asking when this was going to take place. I know as much as the President, nothing. In all seriousness, who does know?  What can read into memos handed out?  By HUD?  By the media? So many seem to have answer to this. But until I see the actual investors with the new limits, that's when I know it will be safe to say that we can now help you.

For any other mortgage needs, especially anything to do with FHA mortgages, please never hesitate to contact me. 

______________________________________________________________________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert

For more information on how you can obtain your dream home, please click here : Mortgage Financing Options

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!

 
Copyright © 2008  by Jeff Belonger

Helping people is a passion of mine, but getting a thank you when not asking for it is even better. I received a contact e-mail through Active Rain from a consumer looking for some help in regards to financing on 01/21/08. We finally closed on her loan on 02/15/08. I received an e-mail from her later on that day which read :

Jeff,

I do have to say, I’m not so sure we would have a closing if it were up to another company. You persevered more than anyone else; kept on top of all the requests and details and always kept me informed as to the status. We have had several refinances in the past that were nightmares. We have been overcharged fees as well as promised a closing date in a few weeks. The closing took 10 weeks because the mortgage broker promised things he couldn’t deliver. You got our closing done in approximately 23 days and I know that it was not easy because of our financial situation.

I think in a few more months if we had stayed with our present mortgage company, we would have had serious credit problems and with the adjustable rate increase coming up in August we could have ended up losing our home. It’s so nice to breathe a sigh of relief and know that I once again this summer will have a beautiful garden to relax in. Please feel free to use me as a reference anytime.

Thanks again. Veronica

I love being a part of a team and on the same page. I had a lawyer contact me on 2/3/08 because she saw my profile here on Active Rain. Her and her business partner have a large group of hedge fund investors looking to buy servicing pools from other large lenders. These are typically pools of money ranging from 15 million to 100 million dollars in loans that are going bad, typically behind on their mortgage payments. Basically, they need a lender as ourselves that can come in and review the pools of money to give them an idea of how many can be refinanced prior to them buying the pool. Their goal is to hold onto the least amount of loans after its all said and done. What do we get out of it? A chance to refinance any loan from that pool of mortgages bought from them. After our first conversation on the phone, I received this e-mail from the lawyer.

"Jeff, FANTASTIC TALKING TO YOU!!! Glad to meet someone else who also believes you can make money AND help people. We, at XYZ, are very excited as this could be a win-win for all involved." And at the end of the e-mail, she has this phrase. "Do well, by doing good"

The owner of my company and I met them in NYC last Wednesday for 3 hours and came away with positive thoughts. As we were driving back, I received a call from the lawyer in which she thanked me several times for taking the time in meeting them. They have talked to a handful of lenders and never felt the same vibe that they felt with us. It looks like to be a good business relationship!!!

I had a client actually call me locally because she read some of my blogs here on Active Rain. She needed someone that truly understood the ins and outs of FHA mortgages. They are going through a really bad time which I wrote about here : Good people can finish last......

After hearing her story, I have been on a little crusade to help her no matter what it takes basically on some of the time that I have left. We have been in constant contact each week since she first called me back on 01/25/08.

Well, I received an e-mail from her the other day with a Valentine's card. She is married with 3 kids and it made me realize that people can just wish you a happy valentine's day because they care and are thankful. (don't forget, I am a guy)

Just yesterday, I had a consumer from Maryland e-mail me through Active Rain because she had some questions. Here is how she started her e-mail.

"Hi Jeff, first of all, your blogs have helped me correct many lenders about FHA MIP."

I got the chance to speak to her on the phone yesterday and she told me that she was even working with 2 lenders locally, but after reading my blogs, she had to go back to them to bring up some key points that didn't seem right on their Good Faith Estimate. Both of these loan officers apologized and corrected their good faith estimates. Ouch... I guess this even proves that local lenders can mess up.

But here is the true story behind this. She mentioned that she has been reading my blogs for over a few weeks, which just proves that you never know who is reading your blogs and for how long before they contact you.

Overall.... not only has Active Rain helped with my business, but it has helped with educating consumers and real estate agents across the country. Rich Jacobson wanted to hear these types of success stories. ""Testimonials in the Rain" - What's YOUR Story?"   Lasty, I have made many friends along the way. Please read : Active Rain does work & not only for me -- Success Stories!!!! -- 11/12/07

Friendships because of Active Rain from all over that have finally met........