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!

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!

Give me $8000 Please!

First time home buyers (those that do not occupy a home that they own) can now get $8000 from the federal government just for buying a home. What a deal! Even better is the fact that the IRS will allow you to amend your 2008 return to get the money now or wait until you file your 2009 return, your choice. They will treat your purchase as if you bought it on Dec.31 of 2008. This tax credit does NOT have to be paid back as long as you live in the home for the next 3 years. For the full credit, you must make no more than $75,000 annually ($150,000 = married couple) and the home purchase must close between January 1 and Novemebr 30, 2009.
You need to do a couple of things:
1) Get Preapproved for a new mortgage: START HERE
2) Buy your new home.
3) Apply for the tax credit. Here's the form: IRS FORM

Additional information can be found at http://www.giveme8000.info/