My New Blog

We've all heard of the "Short Sale" but how many of you out there have heard of the "Short Refinance?"  I'm sure not many......at least, not yet! 

Due to the deteriorating housing market (and rising, adjustable interest rates) many homeowners in Las Vegas are faced with daunting options.....either short sell their house or face foreclosure.  But what if you want to keep your home?  Most think that there is no way of keeping their current home in Las Vegas due to gross declination of home values i.e. there is absolutely no equity (or they're upside down in their mortgage) in their home therefore they cannot refinance into a lower, fixed rate with a more affordable payment.  I'm here to tell you that THERE IS A WAY TO KEEP YOUR HOME AND REFINANCE INTO A LOWER, FIXED RATE!  That way is called the "Short Refinance". 

Much like the "Short Sale", the existing lender accepts a lower payoff than what the current homeowner's balance is and releases the lien to a new lender.  All closing costs are included in the new loan AND the new loan will be 97% of the CURRENT MARKET VALUE OF THE HOME!  For example, if you owe $350,000 on your home and the current market value is $230,00, your new short refinance loan balance would max out at $223,100!  That is $126,900 LESS that you owe on the home!  AND (as if that wasn't enough) you will have a low, fixed rate mortgage!   In most cases, especially in Las Vegas, the existing lender even reports the "settled for less" situation AS A PAID IN FULL on credit!  Thereby avoiding that dreaded "settled for less" statement on your credit report! 

The short refinance WILL become prevalent until the market recovers.  Of course, you must qualify under the new guidelines but, rest assured, the guidelines for qualifying for a short refinance are a lot more lenient than traditional mortgage loans.  You can even be up to 90 days late on your mortgage and still qualify for the loan!  Credit scores do not determine eligibility either!

For more information on the short refinance OR if you want to get pre-approved for a short refinance, please call me direct at 702-234-7766 or you can email me at loansbytami@yahoo.com.

It's been a ROUGH 2008 for the economy and, especially, for the real estate and mortgage market.  Every day that passes, it seems that lenders are getting more strict and imposing more guidelines for people who want to purchase a home via obtaining a home loan!  Gone are the days of 100% financing.  If anyone wants to buy a home, you now have to come up with at least 3% in down payment (depending on the purchase price of the prospective home).  Or do you????

Not any longer!  For those looking to purchase a home in Clark County, rescue has come in the form of a GRANT!  A TRUE GRANT!  No repayment, no seller assistance, nothing!  The name of the organization offering this grant is the HUGS Foundation, based right here in Las Vegas! 

How does it work? 

Simple.  Requirement #1........You must be a first time homebuyer (not have owned a home in the past 3 years).

Requirement #2......You must make under a certain amount.  Trust me, the income restrictions on this program are a LOT easier to qualify under than your typical restrictions.

Requirement #3.......Your mortgage professional (or loan officer) and your realtor MUST be members of HUGS.  Nope, you can't use your friend's husband's sister who might be a realtor if they aren't a HUGS member. 

Requirement #4.......You must attend a HUGS seminar that basically teaches you the ABC's of homeowneship and responsibility.

Requirement #5.......You must have LESS THAN $15,000 in liquid assets.  (If you had more than that, you really should be putting down some money!).

Requirement #6.....You must invest at least 1% of your own money into the transaction.  In most cases, your earnest money will cover that!  The rest of the required down payment will be paid for you by HUGS!

Easy, right?  Heck yeah, it's easy!  This is as close to 100% financing you can get in Las Vegas!  I'm extremely excited about this program and am happy and honored to say that I am a member of HUGS!  There IS some light in this "gloomy" environment!  And my goal of helping as many people as possible in attaining the American dream of homeownership moves significantly forward with the introduction of this invaluable program!

Any questions?  Or just want to get qualified?  Give me a call and I'll answer any questions you may have!  Hey, maybe a couple of your friends and family might benefit from just a program! 

Well, the news was surprising and no one expected it but the government has officially taken over mortgage giants Fannie Mae and Freddie Mac effective yesterday.  The news gave mortgage backed securities a BIG lift today which translated into much better rates!  We haven't seen such a drop in rates (and hike in investor confidence) since early 2005! 

What does this mean for you as a buyer?  Well, it means to take advantage of this steep drop in rates and lock in if you can.  Now is the time to buy (REALLY!) what with home prices at an all time low due to all the foreclosures and NOW with rates decreasing tremendously!

What does this mean for you as a realtor?  The answer is obvious.  Educate your clients about not only the hugely discounted properties for sale but now the extreme drops in rates.  Normally, rates don't fluctuate much from day to day and rates dropped significantly since Friday.

This won't last forever so "jump on the bandwagon" (as the saying goes) and make the most of your buying dollar! 

Happy hunting and don't forget to LOCK your rate or ensure that you have a trusted mortgage professional who can advise you regarding when locking is prudent!

Went to the Monster Jam in Las Vegas today.  What a fantastic event!  I have never been a real fan of automotive sports but I have to admit, this was a lot of fun!  My son enjoyed it tremendously!  And so did I and my partner! 

We also went to NHRA late last year in Las Vegas and that was a blast, as well!  I am becoming a big fan of both NHRA and Monster Jam!  Next on the list?  NASCAR.

With lots of rhetoric about the economy and the hesitancy of consumers to spend money, lack of spending at these events was not present.  Monster Jam was sold out and people were purchasing merchandise and food like it was going out of style.  It was relieving to see that people were still having a good time and spending money.  Not the "doom and gloom" that we see in the media. 

Housing inventory is also decreasing, which is a great sign for Las Vegas.  With builders slowing down their building and the volume of lower priced homes, we're seeing an increase in homebuyers' applications for home loans.  Vegas is still growing and the strip is still expanding which translates into more jobs and more people looking for homes.  The bottom is in sight and we'll soon see a stabilizing real estate market!  Good news for all of us!

My previous blogs have mysteriously disppeared and I'm having to start ALL over again!  Nuts!  Lol. 

Subprime is all but gone, 100% conventional loans have been temporarily suspended in Las Vegas (until our market is no longer considered a "declining" market) and now we have buyers who more than qualify for a mortgage scratching their heads asking "how can we buy a home without saving for many years for a down payment?".  Two answers.....VA (for those of us eligible for it) and FHA! 

VA still provides 100% financing for their current or former service members and FHA, while it only provides up to 97% financing, can also be utilized to obtain a las vegas mortgage at 100% loan to value!  While VA would be the better choice of the two, largely in part due to the absence of PMI (Private Mortgage Insurance) monthly payments.  But if you aren't in or ever have been in the military, FHA is, no doubt, the way to go! 

How is FHA considered a 100% mortgage loan program when they can only finance up to 97%?  Here's the answer......by utilizing down payment assistance programs, the FHA then becomes a 100% loan.  You can even structure the closing costs to be paid for you and you will virtually move into a home with no money down and no money towards closing costs!

Sound too good to be true?  Especially in these turbulent times?  It's NOT!  I'd love to explain more but I would be on this computer for another hour just trying to do so!  How do you find out more?  Call or email me and I'd love to share!

Have a great night, Las Vegas!

Mortgage Rates are at a Three Year Low!

The state of the economy has many worried about a recession.  Stocks are suffering and there was a major global sell off earlier this week.  The stock market (and economy) was in enough turmoil that the Federal Reserve thought it urgent enough to hold an emergency meeting last Monday night to cut the Federal Funds rate by .75%!  The highest cut in years! 

Because of the decline in the performance of the stock market, mortgage rates (mortgage backed securities or mortgage bonds) have seen record lows.  Generally, when stocks suffer, mortgage rates go down! 

It's been a fantastic run for mortgage rates the past few months and it's a very opportune time to purchase or refinance a home.  Right now, home loan rates for the 30 year fixed are at 5.25%!  The 5 year ARM is in the high 4% range!  We haven't seen rates like that since the refinance boom a few years back!

If I were considering refinancing or purchasing a home, I would seriously consider taking advantage of the current low rates.  But who knows????  Rates may go even lower if the stock market keeps underperforming the way that it has been recently!

Congress is currently debating your ability to obtain mortgage financing in the future.

I'm writing to let you know a few things about H.R. 3915 - a newly introduced piece of legislation that has just been passed in the House and will be on the Senate floor in the coming days.

Commonly referred to as the "Mortgage Reform and Anti-Predatory Lending Act of 2007," this Bill is attempting to make sweeping changes to the way the mortgage market operates.

Here's what it would mean for borrowers if the Bill were to pass as currently drafted:

• Refinancing transactions would become more difficult and potentially expensive;
• Discriminate against borrowers who have had poor credit histories from getting loans that they might otherwise deserve to get;
• Complicate the loan process for many borrowers as it would eliminate reduced documentation options such as "Stated Income" or "Low Documentation" loans.

Some of the changes proposed by the Bill are positive and intended to protect consumers. For example, the Bill proposes a licensing program and national registry that would track the activity of every originator, both mortgage broker and direct banker lender, in the country. This would allow for bad loans to be traced back to the originator and corrective action to be taken. Believe it or not, unlike myself, there are MANY loan officers who are not licensed or continuously educated in the mortgage field.

Hello all,

Sorry for the big gap in blog entries but I finally got my new house closed and it's been extremely hectic trying to move and everything that goes along with it! 

Things in the market have been pretty crazy and lenders have been changing their guidelines like crazy!  A major breakthrough this week is that they have gotten rid of the 2 year ARM!  Although the 2 year ARM was a product that can be used very effectively, most people that were put into that product were not properly educated on what they needed to do DURING that two year period to transition into a more stable loan product.....which is why we have so many foreclosures in our market today!  Because of that, all lenders have eradicated the program altogether.  Another piece of good news is that the 3 year ARM now has pricing that the 2 year ARM had....which, of course, is better!

We are in a big transition period now regarding fixed rates.....rates have been moving pretty significantly in the past month and in the past week, we've seen them move downward, slightly.  Depending on how many more foreclosures we see will make a significant impact on where rates go.  Don't fret, rates are still extremely low compared to the 1980's and 1990's! 

It's after midnight in the City of Sin and while the strip is full of young vibrant people tackling the always eventful nightlife, I am tackling the topic of credit report myths! 

The animal known as the credit report has become a major player in life and how we live.  Want car insurance?  Your credit report is checked.  Need a new car?  Credit checked.  Need power to keep you cool at night?  Credit checked again.  Maybe a phone to keep in touch with loved ones?  Credit checked....yet again.  Almost everything we do or plan to do is dictated by what that piece of paper has on you!  Have I mentioned that it's pretty darn important to have good credit to get what you want at a good rate?

After being in this industry for a few years, I've picked up a plethora of information on what affects credit and what doesn't, how to maximize your scores and even some tricks that will raise your scores IMMEDIATELY.  Sometimes life hands you lemons and.......well, here are some of the ingredients to make some lemon juice!

If you're reading this blog you're either really bored or maybe your credit has room for improvement!  Either way, I hope to entertain and inform by the end of the blog....please feel free to let me know whether I've succeeded at either or none!

As long as I pay my bills on time, my credit will be great MYTH.....

Most of us have grown up being taught that as long as we pay our bills on time, great credit will follow.  WRONG!  What....you say????  Let me explain.....the credit bureaus come up with the infamous fico score that determines the "credit worthiness" of a borrower.  These scores are determined and calculated based on many factors.  One of the biggest factors with the biggest weight on scores are credit cards, otherwise known as revolving accounts.  The more available credit one has on their revolving accounts, the higher the score will be.  Here's an example.....Tommy always pays a little over the monthly minimum requirement (about $50) on his $2,000 limit credit card.  He keeps an average monthly balance of $1,600.  Tommy believes that he will have great scores because he pays more than the monthly minimum, every month and on time.  Tommy is wrong!  His scores will be average, but he is not someone the credit bureaus deem as someone who deserves high scores because he keeps such a high balance on this card!  If his balance (when the report was pulled) was zero or close to it, his scores could possibly jump up to 100 points!  Of course, this is assuming that this account is at least 12 months old (length of time an account has been open is also a BIG factor - which will be discussed later).  Ultimately, just paying your bills on time and paying the minimum will NOT maximize the potential score that you could have! 

Once I pay off a credit card, I should close the account MYTH.....

Another idea that's been instilled into our heads is that we should close our accounts once we've paid it off......WRONG!  Another big factor in determining scores is the amount of accounts available to a consumer - which also ties in with "available revolving credit".  The more credit that you have available to you....the higher your scores will rise!!!!  Even if you keep zero balances at all times and never use the card, just the fact that there is available credit that you are not utilizing really does maximize the potential for your credit scores!  So, the next time you go to Best Buy and take advantage of their 18 month no interest promotion to buy that 50" plasma TV - do not, and I stress, DO NOT close the account once you've paid the TV off!  Keep the account open, because it WILL keep your scores at their maximum! 

If I pay my collections off, my scores will rise immediately MYTH......

I know, I know.....one would think that if collections are paid off, scores would rise.  It's the right thing to do, right?  Of course it is!  But, there is, what I believe to be, a flaw in the credit reporting system.  Let's say that Tommy incurred a bill that made it to collections and they started reporting to the bureaus in December of 2004.  In the collection details, there is a "date of last activity" which is usually the date that a payment was last made or when the account was initially reported to the bureaus.  So, in Tommy's case, the date of last activity will read 12/2004.  Tommy decides he needs to do the right thing and pay that collection off this month.  He's happy he's taken care of it, the creditor is definitely happy that they've received payment BUT the very next month, when Tommy applies for a mortgage, his score has dropped!!!  What happened?  Well, here's where the flaw is....when Tommy made that payment in May of 2007, the creditor not only updated the balance owed to zero but ALSO updated the date of last activity to 5/2007!  Any recent update to a derogatory account (whether good or bad) will pull scores down in the immediate future!  Don't get me wrong....Tommy's score will eventually go back up and over what it was when he had a balance on that collection but it will take time.  In credit, time cures all derogatories.  Another flaw to paying collections off????  Well, since Tommy's collection updated their date of last activity to 5/2007 that collection's 7 year clock has been refreshed and now will not fall off his report until 2014!!!!  Fyi....most closed credit accounts or collections only have 7 years to report before they fall off.  Lesson here is.....if you're planning to apply for a mortgage in the very near future, you may not want to pay those collections until after your loan closes just so that you don't jeopardize your scores.  So, if you win the lottery (or Mega Bucks, if you're in Nevada), you may want to think twice about paying off those collections!

Well, it's now well after 1 am in the morning (still early for Las Vegans, but late for me) and I'll end this portion of Credit Report Myths Tackled here.  I have to get up early to take Connor to school and continue plugging away at helping my clients get into the homes they deserve!  Good night, Las Vegas!

I've been in the mortgage industry for just short of 3 years and finally purchasing a home of my own!  I thought I would share my personal experience with those of you that are joining me in "my blog" section!!!

I have always felt a sense of unmatchable satisfaction whenever I help my clients get into a home.  Throughout the whole process, I work extremely hard and treat each deal as if it were my own.  Well, now I get to test that theory and share it with you!

I am in the process of purchasing a home and, of course, I am doing my own loan!  It's ironic, I would think that I would pay much more attention to details when it came to my own loan (this is my first home loan that I'm handling myself)...in reality, I find that I am pushing my loan aside to get my clients loans handled and closed!  Don't get me wrong, everyday, I start working on what I need to do to push my own loan along but I start thinking about my clients loans and stop whatever it is that I'm supposed to do on my own home loan!  There are a lot of steps and details involved in the process of loan processing from the original point of contact all the way to the funding of the loan......I've had to have "stopped" the process of my own loan probably (and this is a guess) about 17 to 25 times in the past 2 weeks!  To make matters worse, the builder has moved up the closing of my house! 

It's strange, although there is an excitement involved in obtaining a new home for myself, it in no way matches the excitement (and sense of urgency) that I get when I'm closing on my clients' home loans.  I guess it may have to do with the notion that there are families out there counting on me to move them into the next phase of their lives.  I take that very seriously and do everything I can to make that transition a smooth and quick one. 

Don't get me wrong, I will be extremely happy when I have moved onto that next phase of my life......but the feeling is not as intense and profound as the one I have when I am congratulating my clients on the closing of their home......strange, I know.