Turn Around Puts Rates at 70 Year Lows

Today it was announced that with the economy still firmly in a recession, the Fed wants to make sure that we do not see a rapid rise in rates that would further hinder any economic recovery. That said, we now see quite a turn around since news of rates rising back at the end of the year. We now have rates that we have not seen in about 70 years according to the report.

With the housing market currently stable and prices back to around 2002 levels, now is a great time to consider buying a home. Yes, the funny types of loans are gone and people now need to show that they can make the payment, but really, isn't that a safety for the home owner in planning properly. Who wants to get a loan that heads them towards foreclosure?

The key to successful loan approval starts with getting with an experienced loan office and getting a pre-approval. Credit scores and the way you have handled your budget and financing is important as it will get you the better rates.  Start the process early to allow time to correct any mistakes on your credit report and you will reap the benefits of low home prices and fantastic rates!

Rates on the Rise as Ecomony Improves

I hope you are not one of those buyers waiting for a further reduction in housing prices to make your move. If so, you may be in for a little shock. Rates for 30 year mortgages have been rising rapidly for over a month, now approaching a level over 5%. Just a little while ago, rates were in the low 4% range.
A 1% rise in the rate equates to a 10% reduction in buying power. House prices are not falling that fast so buyers are essentially losing ground if they are waiting for those lower prices. Many buyers are now finding that they are no longer approved for the same amount with this increase in rates. Get with your mortgage person and ask for an update and how these higher rates affect your buying power. There is still going to be a lot of regulatory changes as we head into the new year and I will keep you informed. Have a wonderful Holiday Season!

Some Have Another Year to Find a Home & Get Tax Credit!

Question - Does the tax credit end for everyone that has not signed an offer to purchase by April 30?

Answer - NO!! Any member of the military, Foreign Service, or intelligence community that has been assigned on extended duty outside of the U.S. for a period of at least 90 days from January 1, 2009 to April 30, 2010, can still take advantage of the tax credit until April 30, 2011. Qualified official extended duty is any period of extended duty while serving at a place of duty at least 50 miles away from the taxpayer’s principal residence (whether inside or outside the U.S.) or while residing under government orders in government quarters. Extended duty is defined as any period of duty pursuant to a call or order to such duty for a period in excess of 90 days or for an indefinite period.
 
Complete details and IRS forms are available at http://www.giveme8000.info/.

Mortgage Costs Are Going Up

When the Fed pulls out of buying Mortgage Backed Securities later this month, analysts are predicting an increase in mortgage interest rates of anywhere from .25 - .50%. On April 5th, any new buyer seeking a FHA mortgage will see closing costs increase also. The Up Front Mortgage Insurance Premium (UFMIP) will go up to 2.25%, up from 1.75%. The first time and move up buyer tax credit goes away on April 30th. If you are planning to purchase a home, now is the time so you can keep your costs down.

WARNING: 2010 Census Cautions from the Better Business Bureau

Be Cautious About Giving Info to Census Workers

With the U.S. Census process beginning, the Better Business Bureau (BBB) advises people to be cooperative, but cautious, so as not to become a victim of fraud or identity theft . The first phase of the 2010 U.S. Census is under way as workers have begun verifying the addresses of households across the country. Eventually, more than 140,000 U.S. Census workers will count every person in the United States and will gather information about every person living at each address including name, age, gender, race, and other relevant data.
The big question is - how do you tell the difference between a U.S. Census worker and a con artist? BBB offers the following advice:

**If a U.S. Census worker knocks on your door, they will have a badge, a handheld device, a Census Bureau canvas bag, and a confidentiality notice . Ask to see their identification and their badge before answering their questions. However, you should never invite anyone you don't know into your home.

** Census workers are currently only knocking on doors to verify address information. Do not give your Social Security number, credit card or banking information to anyone, even if they claim they need it for the U.S. Census.

While the Census Bureau might ask for basic financial information, such as a salary range, the Census Bureau will not ask for Social Security, bank account, or credit card numbers nor will employees solicit donations.

Eventually, Census workers may contact you by telephone, mail, or in person at home. However, the Census Bureau will not contact you by Email, so be on the lookout for Email scams impersonating the Census..

Never click on a link or open any attachments in an Email that are supposedly from the U.S. Census Bureau.

For more advice on avoiding identity theft and fraud, visit http://www.bbb.org/ .

SHARE THIS INFO WITH FAMILY AND FRIENDS.

Time Running Out on First Time Buyer Tax Credit

If you are a first time buyer and want to take advantage of the $8000 tax credit, you should plan on finding and getting your new home under contract by about the first week of October if you want to make sure your home closes on time. With new disclosure regulations, loan processing will all lenders is now taking about 45 days. Don't miss out on this money just by waiting to try to find that HOT deal. The waiting time is over! It is time to secure your future!

New Appraisal Rules Slow Home Buying

May 1 brought about a new set of rules for ordering appraisals that apparently slowed the loan process and caused mass confusion throughout the industry.
On all conventional loans originated after May 1, your friendly loan officer will no longer be able to order your appraisal from an appraiser they may have used in the past. Instead, the loan officer now has to order the appraisal from the lender they plan on using and they in turn order it from a nationwide appraisal company (some of which are owned by the banks themselves). The process has already caused delays and additional costs for borrowers. Borrowers will now have to pay for their appraisal upfront via a credit card or check.
Although this is not in effect for government loans, many lenders are already taking the opportunity to use these systems on all loans.
Here is what you need to know about how this will affect you: Make sure that if you lock your loan, that you allow extra time for increased processing times and be ready to pay for that appraisal. Be sure that you have chosen your lender because lenders are going to be less likely to transfer appraisals now and we are being told that if you go with another lender midstream, plan on doing the appraisal again.
A wild changing mortgage world! I'm just glad I have so many lenders to use for my clients so I can wade through all the nonsense and get the job done!