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

This might be odd since I am posting this in a blog, but I received this e-mail today from a consumer.  I tried e-mailing her, but the e-mail bounced back.  If you sent me this e-mail, please call me.

Subject: Help Me Please!!

Hi Jeff! I've been reading your blog and website and I'm hoping you can help me. I'm a single working mom living in NJ. When I look at the rents vs mortgage, it doesn't seem to make much sense to rent. I found a nice townhome in Jackson, NJ that my 13yr old daughter and I love. They development uses  XXXXXXX  mortgage. The development is not involved with FHA. I'm very new at all of this and very much on my own. I'm terrified of being taken advantage of. I don't have the best credit (but have been working on it). I have access to approximately $10K to put down so far. Should I look into a program like Ameridream or Nehamiah? Thank you for any help or advice you could provide.

Debbie ......if you are reading this, I could not reach you by e-mail. Your e-mail bounced back and said that it was not correct. And you didn't leave me a phone number.  So if you are reading this, please call me at 609-440-5133.  You can reach me from 8 am until 8 pm tomorrow.  I would be glad to answer any of your questions and see if I can help you.

Thank you,

jeff 

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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

Copyright © 2008 by Jeff Belonger

Welcome class..... After reading many blogs and advertising on the internet that talk about "best rates", "no closing costs", "little closing costs", "7 day closings", "hard to close loans", etc, etc..., I decided to give a brief and basic list of what you should be asking. These are also things that I hear from the average consumer on a weekly basis.

No matter if you are applying for a FHA mortgage or a Conventional mortgage, all basic questions should be the same. Don't let anyone tell you differently or confuse you. No matter how you came across this particular lender or loan officer, not only should you answer their questions, but you should make sure that you ask a few of your own. Especially if they don't touch the ones that I am about to mention. (Can there be more that we could argue about? Yes... but I feel that these are the most important.) Shoppers that shop themselves right out of the market……

• RATE : This always seems to be most on everyone's mind. How come though, when I have asked a few people in the past what rate they were quoted, that they didn't know the exact rate that was given to them over the phone. But all they can tell me is that they got a great rate.
  

• Payment : This in all honesty should be your first concern, not the rate. I mentioned rate first, because this is what most clients ask first. And keep in mind, anyone can quote a rate, but it's usually based on you qualifying for the mortgage first. When you shop for a car, do you walk out of the dealership not knowing what your monthly payment is? And your payment is what you should be comfortable with, a reality, not a fantasy.

• Loan Amount : I have heard some clients tell me that the loan officer didn't really tell them what their new loan amount is. This would happen more in regards to refinances more than anything. On a purchase, if you know your down payment, it's easy to figure out your loan amount. Why do some loan officers not disclose your new loan amount on a refinance? Because if you new the loan amount, you could typically figure out what it's costing you, because the costs would be wrapped up into the new mortgage amount.

• Fees : This can sometimes be very deceiving and misleading. Don't ask what your total is, because the loan officer will include all fees that are associated with the mortgage. Just ask for the lender's fees. All other fees are 3rd party and are just that, an estimate. No Closing Cost Loans VS Closing Cost Loans

• GFE aka Good Faith Estimate : This is probably my favorite. By law, once you do an application and / or sign a good faith estimate, you are suppose to get a copy of the Good Faith Estimate (GFE) within 3 business days. In reality, there is no reason not to have a copy the same day. If you are shopping for a mortgage, if the loan officer doesn't offer to send you a good faith estimate, this could possibly be a semi red flag. If you ask for a good faith estimate and it takes more than 48 hours to obtain one, major red flag. Good Faith Estimate -- What to look for when shopping......

Lastly, in most cases, for your loan officer to help you properly, they should be asking what your goals are. Short-term goals and long-terms goals. Possibly asking if you have kids, if they are going to college soon, and anything else pertaining to your life style. Why should they get personal? In my opinion, it because easier for me to advise you on certain parts of your home financing. Example, if you told me that you were going to move in 2 years no matter what, they you shouldn't be paying points to lower the rate.

Here is a must read : Consumers need to be aware of these Red Flags !!!!!

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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

Copyright © 2008 by Jeff Belonger

Has the real estate market been your wheel of misfortune? Have you been made promises after promises? Have you bought into the hype of what one company or person might promise you, but at the very end, it's not even close to what they promised?

• Does a realtor promise you a high listing price, higher than anyone else did in recent months?
• Did a loan officer from a mortgage company promise you a great rate with low to no fees?

Currently we are in a credit crunch, no matter how you look at it. Credit card companies are losing hundred's of thousands of dollars. Mortgage companies and investors are losing the same. Are some of these individuals that you speak to, are they in the same boat personally, that they need to cling onto each and every client so they can make a living?

Trust...... ouch, such a powerful word, but one that is abused often. How can we trust? How can we take that risk and believe someone that we have never met before. Do we take one person's word over another? 

In mortgages and real estate, it can be easy to put your trust in the hands of a realtor or a loan officer. But what I don't understand is if you get a gut feeling that something might not be right, then why do you proceed with that person?

I spoke to a client recently that was going to go with another lender. I asked her to give me some details about her rate and costs. She really didn't know. When I asked about her rate, she said that the loan officer said, "about/around 7%".  And she said that she wasn't 100% comfortable in some of his answers. My question to the general public, why would you even go through with this then?  Even if your back is up against the wall, that you are in desperation, why?  Do you know that this will usually backfire and put you in a worse situation?

The same goes for in real estate. Why listen to a realtor that says they can guarantee a higher price than most? We all like to think that we have a crystal ball. But what about truth and honesty? Realtors have access to what homes have sold in recent months. This is how they determine a possible price for your home. A very good realtor is going to point out to you the market conditions in your area. They will show you homes just as yours and what they sold for. You can't always use a current home on the market, because it might be over-priced. Sure, condition of the property makes a word of difference also.

My whole point in regards to both examples?  Pay attention to such words and phrases as "I guarantee", "I promise", "no problem", "110% satisfaction guaranteed", etc, etc.  I have been doing mortgages for over 15 years and I can't make everyone happy. I even had one gentleman report me to the BBB because he was unhappy. He was unhappy because he thought I was getting over on him, when in reality, I was being 110% honest. And luckily I saved my proof of what I went over with him, with his signatures on it. I fought the complaint and one.

You want my honest opinion?  Those in real estate and mortgages that give you a lot of information upfront, before you even ask for it, are the ones that you should be paying close attention to first. 

I just had a client last week tell me that I was the 6th lender that she had spoken to. After 15 minutes of speaking to her, she said that I moved into the number 1 spot. I said, may I ask why? She said, "because I answered most of her questions before she even had a chance to ask them."  Meaning I basically gave her all of the information upfront for her to make an educated decision. I didn't hold anything back nor did I have anything to hide. Or was I afraid to compete with other lender's fees and rates. A solid real estate professional or mortgage professional understands this.  Just keep in mind what I have talked about, because you might come across this, thinking that you will be fine.

The average sales person doesn't like a client that is educated and fully armed with answers. The true professional actually loves it, because it makes his or her job much easier. And because they know that you know all that you need to know, to not only make a solid decision, but because this is how they operate and can sleep at night.

• Consumers need to be aware of these Red Flags !!!!! 
  

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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

Copyright © 2008 by Jeff Belonger

With yesterdays news that the new FHA loan limits were increased, and that Judge Lawrence K. Karlton upheld Nehemiah's motion against all down payment assistance programs to be banned, it's been a very good week in the mortgage industry. 

Here is part of the letter from Scott Syphax (President & CEO of Nehemiah) who states:

Judge Lawrence K Karlton of the United States District Court for the Eastern District of California upheld Nehemiah's motion for summary judgment. The Court Clerk's Office is directed to enter judgment and close the case.

To be clear, the U.S. Department of Housing and Urban Development's (HUD) rule to ban private down payment assistance as proposed in the "Standard's for Mortgagor's Investment in Mortgaged Property" regulation published October1, 2007, is permanently set aside.

Now, what the average consumer needs to understand is that they truly need to work with a mortgage professional that truly knows all programs in and out. Especially with so many recent changes to conventional mortgages in the last several weeks, it is not easy nor may it be your cheapest method in obtaining a mortgage. If you have credit scores under 680 or your credit is less than perfect, you want to make sure that your lender is FHA approved. If they tell you that you aren't approved for a FHA mortgage, but that they can approved you for a conventional mortgage, that should be a major red flag.

Overall, I am not saying that conventional mortgages are bad and that FHA mortgages are great. But the proof is in the pudding when it comes to the bare facts.  You can truly understand my point just on these two examples.

• FHA mortgages vs conventional mortgages -- 3% down comparision

• FHA mortgages vs Conventional mortgages -- 5% down Comparison

• Top 10 reasons FHA is a great way to finance your home....

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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

Well, it's finally here. The new FHA loan limits are officially out, that they have been changed. This will definitely open up the doors to new purchase deals, because the credit guidelines are more relaxed than conventional mortgages. Especially with Fannie Mae and Freddie Mac coming out with new appraisal guidelines in regards to ordering appraisals. Also, on a conventional mortgage, if you have less than a 680 credit score, you are penalized.

Overall, I could be describing more than 8 reasons why FHA mortgages are that much better, no matter how you look at things. Unless you are putting 20% to 30% down and/or you have a credit score above 680, the pricing on a FHA mortgage will be that much better.

For more reasons why FHA mortgages are easier to obtain and less expensive, please read this : Top 10 reasons FHA is a great way to finance your home....

For a very good reason why FHA mortgages are better than conventional mortgages with 10% down or less, please read :

• FHA mortgages vs conventional mortgages -- 3% down comparision

• FHA mortgages vs Conventional mortgages -- 5% down Comparison

• Will Conventional loans be just like the Subprime mess? 10% down comparison

Many of us are waiting for the HUD Mortgagee Letter that tells us that the changes have been made. Also, if there is any risk base pricing that might be applied to these new loan amounts. Many investors are not allowing the lenders to go over a loan amount of $417,000, no matter how high the loan limit in your area. But as it stands, the new FHA loan limits are official and can be found by going to this site. And keep in mind, these new loan limits, as it stands for now, are only good until December 31, 2008.

https://entp.hud.gov/idapp/html/hicostlook.cfm

Here is a preview of the high cost loan limits and it's areas.

**** Word to the wise -- Just because the loan limits are set with maximums, doesn't mean that the lenders or investors will honor these new limits without some sort of penalty. For example : In Burlington County, New Jersey - the new loan limit is $420,000. But we just got a memo from one of our investors that at this moment, they will go up to $417,000 without any penalties or changes to the down payment.

What I am trying to say is....Typically with FHA, you can put the least amount down which is 2.25% as your down payment. Some of these lenders might want you to have the difference down up to a certain loan amount. A lot of this will be cleared up in the next several days as the lenders sort through the pricing criteria.

My advice, pick your loan officer and lender wisely. I had a client that spoke to a lender 3 weeks ago that told her that the new limits were out. That was FALSE, as you can see, because they just came out now. You just can't go off the new changes mentioned in the link that I supplied. We have to wait basically until the dust settles and that we get the particulars from those investors on Wall Street. ****

______________________________________________________________________________________________________________________________________________

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