April 5, 2007
Non Verification Loans
An acceptable situation for non-verification of income is, per the FNMA and FHLMC guidelines, when the layering of risk is sufficiently low that supporting documentation is not required.
In plain English, if you have:
1. high enough FICO score
2. sufficient reserves
3. sufficient income etc.
Fannie Mae *does not want* the stack of paperwork. The intention is for process simplification and paperwork reduction, not to enable people to get a loan who shouldn’t.
April 4, 2007
FICO Scores
FICO Score–
Excellent credit is a requirement for obtaining conventional home financing, not a compensating factor, and depending on the amount of down payment, someone with a FICO score of 620 will get the exact same rate as someone with a FICO score of 811.
Unfortunately there is far more inaccurate information out there about credit scoring than there should be, and there have been people in the mortgage industry that have used this to their advantage to provide financing at higher rates than necessary(maybe not a whole lot higher - .125% could be all, but that is generally profit for the loan officer.
For an opposite example, I had a client who had a substantial amount of equity but a mid FICO of 590 – below the FNMA threshold of 620, but FHLMC (Freddie Mac) does not have a minimum credit score requirement. He got the same rate as anyone else that would have had an identical financing scenario other than the FICO score.
April 2, 2007
Sell Your House Faster
1. Go for the minimalist look so buyers can picture their own decor.
2. Don’t over-price.
3. Get the best broker around.
4. Market, market, market
5. Offer a 2% “seller contribution” to help a buyer pay for closing costs.
6. Make sure the house will pass inspection with flying colors.
7. Get buyers feedback after a showing or open house.
April 1, 2007
Looking For An Agent? Watch Them In Action
If you are a regular reader of this blog, you’ve gotten sound advice on ways to get a great agent, like research and referals.
Well, Open House season is in full swing, and that means you can see agents in action, while also seeing what’s on the market.
When you see an agent at an open house you know they have experience. You can observe them in real life interaction and determine if they would be a good fit. Take all of their printed material so you get a feeling for their marketing approach.
This is proactive at its best.
March 29, 2007
Jamaica Plain Fun Run
- Run as little as one mile or as much as 18 miles
- Water/ Gatorade support provided for all loops
- Post-run brunch at 70 Montebello Rd. sponsored by Joe Fallon, McCormack and Scanlan Realtors
- $1/ minute Chair Massages by Beth Abelow of Sun Moon Shiatsu
March 29, 2007
Record Breaking Foreclosures Filed
The number of homeowners threatened with foreclosure last month more than double from a year ago. 2,207 Massachusetts homeowners were served foreclosure notices, a one month record.
If you think about it, subprime mortgage lending actually causes a decrease in homeownership.
March 28, 2007
Top 10 Mortgage Mistakes
This list was made by Ted Janusz, a former Mortgage Salesman interested in helping borrowers get a fair deal:
1. Not knowing which mortgage fees the borrower can and cannot negotiate.
2. Choosing and trusting the first loan officer the borrower interviews. Shop around.
3. Using an interest-only or “payment option” adjustable-rate loan primarily to qualify for a more expensive house.
4. Thinking the interest rate is always the main thing.
5. Not comparing the final fees listed on the closing documents to the up-front estimates and good faith estimate to avoid the lender “packing” the loan with added-on fees without the borrower’s knowledge.
6. Not knowing if the mortgage has a pre-payment penalty until it’s too late, like, when the borrower decides to refinance or otherwise pay the mortgage off early.
7. Thinking that renting is always “just throwing money away.” In the short run it can cost thousands less to rent.
8. The borrower does not know if he or she is paying a back-end yield spread or service release premium, fees paid to brokers and loan officers for making loans with higher interest rates.
9. Paying for mortgage life insurance, credit insurance or other expensive but unnecessary lender add-ons.
10. Paying hundreds of dollars to have a company set up a biweekly mortgage payment plan, something the borrower can generally do for herself or himself — at no cost.
March 28, 2007
Bloomframe: Window Turned Balcony
Bloomframe is a window frame that can be transformed into a balcony. The balcony is automatic, with one control. Of course, it is guaranteed collapse safe.
The only issue, and it’s a big one, I can’t figure out where to buy it. The architect’s website above is difficult to navigate, and when you do find the window it’s just a description. If I was really into buying this I wouldn’t waste time searching for a vendor, I would just call the architects directly. Their contact information is easily found on the website.
March 26, 2007
Twin Bucket Recycle Bin
The appliance of the year - for me anyway. I mean, I have kept garbage under the sink and recycling by the back door in a paper bag for so long, always thinking I need a better system, but never taking the time. This is a good idea.
59 bucks
Simple Human
