Rockland County New York Real Estate » Mortgage & Finance

Mortgage & Finance

admin — Tue, 07 Feb 2012 01:05:32 +0000

1) Today’s Interest Rates .

There are so many wonderful tools on the web today to help buyers and sellers navigate the challenging process of home buying and selling. Click on the graphic to the right for an update on interest rates. What a great time to buy.

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What not to do before Buying a Home

admin — Sat, 09 Apr 2011 17:16:35 +0000

What NOT to do before buying a home
Published by James Troia on Friday February 18, 2011 10:44 AM
For buyers who have the intention of purchasing within the next six months, it’s important to get the finances in order and set a reasonable plan to make your purchase achievable. However, there are also a few things one should not do when preparing to enter the buying process. To ensure a smooth process, you’ll want to avoid the following:

Stay away from making any other large purchase of any kind — especially a new car. Even if you have accumulated the savings to cover it responsibly, control the desire to spend. “A large purchase, a car or otherwise, can affect your mortgage terms when the time comes to seek financing,” says Matthew Rand, Managing Partner of Better Homes and Gardens Rand Realty. After applications are submitted and the numbers are crunched, your extra loan payment will affect the terms you wind up receiving when all is said and done. “The less complicated your finances appear to the loan officer, the better off you will be.”

Avoid any unnecessary moving around of money as well. When a lender reviews your finances for approval, one of the major concerns will be the source of your down payment, closing costs, etc. You’ll also need to provide statements for the last two or three months on any assets. “If you have moved money around recently, there may be large deposits and withdrawals on your accounts, which will make it difficult for the lender to properly document,” says Rand. “Try to leave your money where it is until after you speak with a loan officer; this includes not changing banks either.”

If you can prevent it, don’t voluntarily change jobs while trying to purchase or close on a house. Again, the source of your income is extremely important to a lender. If there is any question about where your money will be coming from, it could put your deal in jeopardy and increase your level of risk to the lender. Although sometimes a change in jobs is unforeseen and unpreventable, try to close your deal before making a professional move. “You need the lender to be confident in your ability to pay back the loan. Showing a long history of steady income is crucial to your success as a buyer,” says Rand.

By appropriately planning and making smart financial decisions throughout the buying process, you will experience less hurdles and a much more efficient transaction.

Reposted from The Rand Blog

Pre-qualify or Pre-approval

admin — Tue, 29 Jun 2010 12:30:50 +0000

What is the difference between pre-qualifying and pre-approval?

Given the current state of mortgage lending, knowing where you stand credit wise is even more important now than ever.

A pre-qualification is normally issued by a loan officer, who, after interviewing you, determines the dollar value of a loan you can be approved for. No credit checks are done, no employment history taken, nothing is submitted to an underwriter. However, loan officers do not make the final approval, so a pre-qualification is not a commitment to lend. After the loan officer determines that you pre-qualify, he/she then issues you a pre-qualification letter. In times past, before houses were selling very quickly (between 1997-2005) we used pre-qualification letters. However during the peak seller’s market pre-approvals (explained in the next paragraph) became the standard in the Greater Hudson Valley Region.

It is important to note that in truth anyone can be “pre-qualified”. Your realtor can do it for you, they simply have to know the lending guidelines.

The better course of action if you are a serious buyer is to utilize the Pre-Approval Letter. This can only be secured through a lender. Given the buyers market we have now, the pre-approval letter is still all-important. Everyone has heard of the high foreclosure rates, short sales and, frankly, all of us are suffering at the gas pump. This makes a pre-approval letter an absolute must in these times.

No self respecting (and sane) agent should put any prospective buyer in their car unless they are fairly certain they are ready, willing and ABLE to purchase. And no self-respecting prospective buyer should expect any realtor to act as a taxi driver. It is also important to use a LOCAL LENDER, preferably a senior officer and one with whom the agency has had successful past dealings. All these preparations are very key to a successful transaction.

Pre-approval is a step above pre-qualification. Pre-approval involves verifying your credit, down payment, employment history, etc. Your loan application is submitted to an underwriter and a decision is made regarding your loan application. If your loan is pre-approved, you are then issued a pre-approval certificate. Getting your loan pre-approved allows you to close very quickly when you do find a house. A pre-approval may help you negotiate a better price and/or terms with the seller, because they know that the buyer is serious enough to have answered the hard questions with a lender. Often having a pre-approval at the ready can give you a leg-up if you are up against another buyer who did not come to the table so well prepared.

Home Buyer Tax Credit Extended

admin — Thu, 17 Jun 2010 13:51:51 +0000

The Original deadline for the credit Expired on April 30, 2010, however the expiry date has been amended to September 30, 2010.

Due to the home buyer tax credit extension, expect delays when applying for mortgages these days. Between this tax credit and all the refinances taking place processing time can be as long as 4-5 months, rather than the normal 6-8 weeks.

Plan ahead and bring a complete package to your lender for their underwriting department.

(up to) $8,000 tax credit – time is running out

admin — Sat, 27 Feb 2010 19:24:17 +0000

HomeBuyer Tax Credit – Extended and Expanded

admin — Thu, 19 Nov 2009 21:57:51 +0000

Updated: November 19, 2009 – Summary (with full details below)

Here is the latest: Effective Nov. 6, 2009 the changes to the home buyers tax credit program include the following:

Homes have to be purchased between November 6, 2009 and June 30, 2010
(in full contract by April 30).

Closing documentation now required.

Existing home owners are now eligible if they have owned a principal residence for 5 consecutive years out of the 8 years preceeding the purchase of a new home.

Income limits have been raised.

FULL DETAILS BELOW

The full $8,000 Tax Credit is for first-time-home buyers (either spouse if filing jointly) who have NOT owned a principle residence during the three-year period prior to the purchase. Ownership of vacation property or rental property does not disqualify home buyers from this program.

The maximum credit is $8,000 or 10% of the home purchase, whichever is less.

The credit is available for homes purchased on or after November 6, 2009 and before June 30, 2010. However contracts must be fully ratified before May 1, 2010.

To qualify for the full tax credit, married couples’ modified adjusted gross income (MAGI) should be under $225,000 (up from $150,000) and single filers’ MAGI should be less than $125,000 (up from $75,000). Partial tax credits may be available for married couples with MAGI incomes of over $225,000 but under $245,000 and single filers with incomes over $125,000 but under $145,000. If married couples who qualify for the first-time tax credit file separately, they would both claim 5% of the home purchase or $4,000 each (whichever is less) on their tax returns.

There is no recapture or repayment clause IF the home is owned for at least 36 months.

Current Homeowner: An individual (and, if married, an individual’s spouse) who has owned and used the same residence as a principal residence for any 5-consecutive-year period during the 8 year period ending on the date of the purchase of a new principal home will be eligible for a $6,500 tax credit ($3,250 married filing separate).

The full amount of the eligible tax credit is refunded to the buyer, regardless of whether the buyer has paid an equivalent amount in taxes.

Home purchase cap of $800,000 (no cap in previous version).

Special exemptions and extensions for military, members of the Foreign Service of the United States, and employees of the intelligence community: If such individual serves on official extended duty outside of the United States for at least 90 days between December 31, 2008 and May 1, 2010 the deadline for entering into a binding contract to purchase a home will be extended to April 30, 2011. Closing must be before July 1, 2011.

Credit is only available to purchasers who are at least 18 years old.

This version now requires that the home purchaser attach a properly executed copy of the settlement statement used to complete the purchase to the tax return.If you purchased a home between January 1, 2009 and November 6, 2009 you will fall under the original tax credit guidelines.
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Please consult your tax adviser / accountant to determine whether you are eligible for this tax credit before making any decisions or changes to your tax status. This website is for information only and should be verified by a tax professional.

Long Term Rates Fall to Lowest Level in Five Weeks

admin — Fri, 13 Nov 2009 16:56:11 +0000

UPDATE: Nov. 13, 2009

LONG-TERM RATES FALL TO LOWEST LEVEL IN FIVE WEEKS.
30-Year FRM Below 5 Percent For Five Of The Last Seven Weeks
.

“Mortgage rates eased further over the week, helping to promote an affordable home-purchase market and stimulate refinance,” said Frank Nothaft, Freddie Mac vice president and chief economist. “This comes at a time when house price declines are moderating and consumer demand for prime mortgages at commercial banks has picked up.“The National Association of Realtors® reported that national median sales price of existing homes
fell 11.2 percent in the third quarter relative to the same period last year,. Moreover, almost 20 percent of the top metropolitan areas experienced

First Time Homebuyer Tax Credit Expands

admin — Fri, 31 Jul 2009 23:13:31 +0000

MLP Mortgage Calculator

* American Recovery and Reinvestment Act of 2009
* The Housing Recovery Act and First Time Home Buyers

First-Time Homebuyer Credit Expands.

Homebuyers who purchase in 2009 can get
a credit of up to $8,000 with no payback requirement.

Overview

First-time homebuyers may be able to take advantage of a tax credit for homes purchased in 2008 or 2009. The credit:

Applies to purchases that close after April 8, 2008, and before Dec. 1, 2009.
Applies only to homes used as a taxpayer’s principal residence.
Reduces a taxpayer’s tax bill or increases his or her refund, dollar for dollar.
Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

The credit is claimed using Form 5405.

Updated January 13, 2010

Terrific refi rates on your Rockland Real Estate

admin — Tue, 05 May 2009 14:56:00 +0000

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Qualify

admin — Thu, 11 Dec 2008 21:05:19 +0000

Mortgage rates drop to a fifty year low

"Even with amazingly low interest
rates, lower home prices and the
first-time homebuyer tax credit,
it is unlikely that we will see
an increase in overall home sales
until we see some stabilization of
employment.

Preparing For Home Ownership

Rent vs. Buy
Understand the financial differences between renting and owning.
Tax Savings
Learn about the potential tax savings with homeownership.
How Much Can You Afford?
Research how much house works within your budget.
How Much Can You Borrow?
Learn how much money you might be able to borrow.

The Quick/Easy Mortgage Calculator

All About Mortgages(Source Freddie Mac)

Fixed or Adjustable-Rate?
Understand the financial differences between the fixed- and adjustable-rate mortgage.
Adjustable-Rate Mortgages
Find out how much monthly mortgage payments might be with an adjustable-rate mortgage.
Fixed-Rate Mortgages
Find out how much monthly mortgage payments might be with a fixed-rate mortgage.
15-year or 30-year Term?
Learn how a different term affects your mortgage payment and overall cost of the loan.
Down Payments
Research how much of a down payment you should consider.
Closing Costs
Estimate what your closing costs might be.
Extra Payments
Learn how advantageous extra monthly mortgage payments might be.
Paying Points
Find out how paying extra points might lower your mortgage rate.
Mortgage Insurance
Understand how to possibly reduce mortgage insurance.

Purchasing A Home, and Avoiding Foreclosure

Refinancing Costs
Understand what your refinancing costs might be.

*Used with Permission from Freddie Mac