1. Buy a Home – while rates are still fairly low, it is a good idea to make your money work for you in qualifying for a home. Since both the amount of the home loan you will need in purchasing your home AND the amount of the new mortgage payment are taken into account when qualifying you, it is a good idea to buy now so that you have a better chance of purchasing more home for your buck and qualifying for the new home payment.
2. Sell Your Home – It is a seller’s market right now, but it won’t last forever. If you have been contemplating selling your home and moving up to a bigger home, now is the time to do it. Home prices may go up, however your buying power may go down. If you sell your home now, you will have a good balance of what you could make off of your home as well as qualifying for more home for your buck.
3. Refi if you haven’t already – rates are still at all time lows, but they are creeping back up. If you have been sitting at a 5% rate or more and waiting for rates to get better, the bad news is, that time has already past. The good news is, you can still a significantly lower rate than you have now and save yourself some money you can put aside for that Porsche you’ve always wanted!

For more information on how any of the above situations could work for you, give us a call at 800-311-6868 today to talk to one of our Mortgage Consultants who can point you in the right direction and answer any questions you might have.

Want to know if you should invest in an investment property or if you should keep your money in your current investments? Click here for a breakdown of you possibilities:  http://mcedge.tv/16fcnm

Recently I had someone ask me what they could expect in closing costs and they had a hard time understanding why certain costs were included and what the costs are exactly. This mostly explains what is itemized on the GFE or HUD-1. Whether you have to come out of pocket for any of these will depend on your specific situation, so keep that in mind while you are reading. In order to help others understand, here is a quick breakdown of what costs you may see on your Good Faith Estimate and Final HUD-1 Settlement Statement:

• Appraisal (up to $450) – This is paid to the appraisal company to confirm the fair market value of the home.
• Credit Report (up to $30) – A Tri-merge credit report is pulled to get your credit history and score.  You cannot supply your consumer pulled report and the scores pulled form the internet from any place other than myfico.com are not real scores nor are they accurate.
• Closing Fee or Escrow Fee (generally calculated a $2.00 per thousand of purchase price plus $250) – This is paid to the title company, escrow company or attorney for conducting the closing. The title company or escrow oversees the closing as an independent party in your home purchase. Some states require a real estate attorney be present at every closing
• Title Company Title Search or Exam Fee (varies greatly) – This fee is paid to the title company for doing a thorough search of the property’s records. The title company researches the deed to your new home, ensuring that no one else has a claim to the property.
• Survey Fee (up to $400) – This fee goes to a survey company to verify all property lines and things like shared fences on the property.  This is not required in all states.
• Flood Determination or Life of Loan Coverage (up to $20) – This is paid to a third party to determine if the property is located in a flood zone. If the property is found to be located within a flood zone, you will need to buy flood insurance. The insurance, of course, is paid separately.
• Courier Fee (up to $30) – This covers the cost of transporting documents to complete the loan transaction as quickly as possible.
• Lender’s Policy Title Insurance (Calulated from the purchase price off a rate table. Varies by company) – This is insurance to assure the lender that you own the home and the lender’s mortgage is a valid lien. Similar to the title search, but sometimes a separate line item.
• Owner’s Policy Title Insurance (Calulated from the purchase price off a rate table. Varies by company) – This is an insurance policy protecting you in the event someone challenges your ownership of the home.
• Natural Hazards Disclosure Report - Required by law in the state of California for the seller to give the buyer.  Reports run between $90 to $150.  May be required by other states
• Homeowners’ Insurance ($300 and up) – This covers possible damages to your home. Your first year’s insurance is often paid at closing.
• Buyer’s Attorney Fee (not required in all states – $400 and up)
• Lender’s Attorney Fee (not required in all states – $150 and up)
• Escrow Deposit for Property Taxes & Mortgage Insurance (varies widely) – Often you are asked to put down two months of property tax and mortgage insurance payments at closing.
• Transfer Taxes (varies widely by state & municipality) – This is the tax paid when the title passes from seller to buyer.
• Recording Fees (varies widely depending on municipality) – A fee charged by your local recording office, usually city or county, for the recording of public land records.
• Processing Fee (up to $1,000) – This goes to your lender. It reimburses the cost to process the information on your loan application.
• Underwriting Fee (up to $795) – This also goes to your lender, covering the cost of researching whether or not to approve you for the loan.
• Loan Discount Points (often zero to two percent of loan amount) – “Points” are prepaid interest. One point is one percent of your loan amount. This is a lump sum payment that lowers your monthly payment for the life of your loan.
• Pre-Paid Interest (varies depending on loan amount, interest rate and time of month you close on your loan) – This is money you pay at closing in order to get the interest paid up through the first of the month.
• Property Tax (usually 6 months of county property tax)
• Wood Destroying Pest Inspection and Allocation of Costs - If required by the lender or buyer, the inspection generally runs up to $125.00.  Repairs can get expensive if eveidence of termites, dryrot or other wood damage is found.  example: Fumigation of a typical 1500 square foot house could run around $2,000.
• Home Owners Association Tranfer Fees - The Seller will pay for this transfer which will show that the dues are paid current, what the dues are, a copy of the association financial statements, minutes and notices.  The buyer should review these documents to determine if the Association has enough reserves inplace to avert future special assesments, check to see if there are special assessments, legal action, or any other items that might be of concern.  Also included will be Association by-laws, rules and regulations and CC & Rs.  The fee for the transfer varies per association ,but generally around $200-$300.

It is important to remember that you may qualify for a lender’s credit to make up for you having to come out of your pocket with any of these costs, but this is determined on a case-by-case basis. To get a free analysis of your specific situation, contact us by calling 800-311-6868.

http://www.acchomeloan.com

800-311-6868

If you have been sitting on the fence about buying a home or refinancing your current one. Now is the time to act.

…Losing Your Home…

This has been a real concern for a lot of people in recent years, so the question is: How can you set yourself up to best prepare to not have to give up the life and security that you have built for yourself and your family?

Here are some preparatory tips to keep you going strong:

1. If you are in an ARM, refi into a fixed rate: Sometimes and adjustable rate scenario can be good for you, but in most cases where you are not wanting to be surprised, it is better to get it fixed. Especially with us seeing the rates in the 3-4% range, this is a great idea right now.
2. Live within your means…drop the credit cards: We grew up living off of the allowance that our parents gave us, then we got jobs and lived off of the money we made. Then, we turned 18 and got those shiny little objects called credit cards and thus began our journey of saying, “I’ll just buy it on credit and then pay it off asap and I’ll be just fine”, not taking into account that next week we will find something else that we “need” and do the same thing again. Stop the cycle before it starts and stay away from the plastic! J
3. Make your payments on time…no excuses: A great man once said that whatever becomes acceptable becomes inevitable (Bob Donnell). This is a true statement. If you accept in your mind that making a late payment here and there is ok, then, chances are, you will eventually make a late payment. Resolve in your mind first that this is unacceptable and do whatever it takes to make the payments that you committed to.
4. Have emergency funds: This will solve the credit card question that I’m sure popped into your head on number 2. Credit cards are NOT for emergencies. Emergency savings’ are for emergencies. Start by saving up $1000 as a reserve for emergencies and you won’t have to dig out a credit card and pay for the emergency AND for the interest on the card.
5. Start smart: it’s not about what you qualify for, but what you can handle. When you are looking to buy a home, don’t just ask what the maximum amount is that you could qualify for. Instead, take a look at your finances and see how much of a house payment you could live comfortably paying, then let your mortgage consultant know. If you come up with that budget first, then you can avoid struggling with number 3 above. J

If  you are looking for advice on refinancing or buying a home, then give us a call at 800-311-6868 and we will be happy to answer your questions for you.

“With Us You’re Never A Loan”