State Of America's Housing Market - April 2012
Wednesday, April 4, 2012
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From the FHA: MIP Update
Monday, March 19, 2012
Most people, when told that both good and bad news awaits them, will opt to hear the bad tidings first. Although they dread receiving unpleasant news, their hope is that the ensuing good news will erase, or at least soften, what they heard earlier. In the assumption that owners of Chester County PA real estate share this approach, the FHA has recently announced bad news/good news regarding their mortgage interest premiums (MIP) and fees.
The Bad News: As part of ongoing efforts to encourage the return of private capital in the residential mortgage market and strengthen the Federal Housing Administration’s (FHA) Mutual Mortgage Insurance Fund, a new premium structure for FHA-insured single family mortgage loans on Chester County PA real estate was announced.
- FHA will increase its annual mortgage insurance premium (MIP) by 0.10 percent for loans under $625,500 and by 0.35 percent for loans above that amount.
- Upfront premiums (UFMIP) will also increase by 0.75 percent. This change is effective for case numbers assigned on or after April 1, 2012.
- FHA is also exercising its statutory authority to add an additional 0.25 percent to mortgages exceeding $625,500. This change is effective for case numbers assigned on or after June 1, 2012.
FHA estimates that the increase to the upfront premium will cost new borrowers an average of approximately $5 more per month. These marginal increases are affordable for nearly all homebuyers who would qualify for a new mortgage loan. Borrowers already in an FHA-insured mortgage, Home Equity Conversion Mortgage (HECM), and special loan programs outlined in FHA’s forthcoming Mortgagee Letter will not be impacted by the new pricing changes.
So, if you are FHA qualified and have been sitting on the fence, NOW is the time to become a Chester County PA real estate owner while you can save money!
The Good News: In a bid to make its Streamline Refinance Program more affordable to U.S. homeowners the FHA has introduced a new concept in mortgage insurance premiums. Going forward, the amounts the owner of Chester County PA real estate will pay for FHA mortgage insurance will depend on the age of existing FHA mortgage. The longer you've had your mortgage, the less you're going to pay for MIP. Certainly a reason to smile for many people!
Tips to Improve Your Score
Tuesday, October 18, 2011
Your credit score is a number that helps lenders predict how likely you are to make your payments on time. This score affects your ability to obtain credit and helps determine what you pay for credit cards, auto loans, and mortgages on Chester County PA homes. Even your insurance rate is related to your score. The higher your score, often referred to as a FICO score, the more apt you are to be approved for and pay a lower interest rate on new loans. Scores ranging from 650 and below are considered bad and indicate to the lender that you are a very high risk. Chances are you will be unable to secure a loan, or if you are, it will be at a much higher interest rate and/or require a cosigner.
What If there Are Errors
What to do if you have a low score and do not qualify for a mortgage on a Chester County PA home? Your first action should be to check your credit report for errors. If you find erroneous information, you need to act immediately by contacting both the credit bureau (the three major ones are Equifax, Experian, and Transunion) and the organization that provided that information.
- The credit bureau/agency: Send a certified, return receipt requested letter to the bureau pointing out each inaccuracy and enclose copies of documents which support your claim as well as the report itself (with the misinformation highlighted). Factually explain why you dispute each item and request a deletion or correction for each one.
- The creditor or information provider: Send the same type of letter and enclose the same documents. Request that the provider notify you of action taken (generally within 90 days) so that you can verify the amended information.
If there are no errors on your report, then you should take immediate steps to improve your credit. Ways to do this include the following:
- Stop using your credit cards. Do not continue to accumulate debt.
- Get current on delinquent accounts. Since payment history makes up 35% of your score, this action will have a great impact on your score.
- Keep accounts with balances open, but don’t apply for more credit.
- Call your creditors. Explain your financial situation and ask about possible hardship programs which will temporarily reduce your monthly payments.
- Begin paying off your existing debts, even if you have to sell some belongings to do so. Come up with a get-out-of-debt plan and stick to it.
- Get professional help. There are resources available to help you reestablish a good credit rating. Contact the National Foundation for Credit Counseling for assistance.
- Be patient. Realize that improving your credit score takes time and that there is no quick-fix --and keep in mind your goal of owning a Chester County PA home.
Summer Time Bug Defense
Monday, June 6, 2011
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Ants, Wasps, & Mosquitoes: Do-No-Harm Defense or All-Out War?
This week we’ve been helping you make patios and decks more comfortable during hot and humid days. Today, we’re focusing on how to prevent ants (try Cream of Wheat), yellow jackets, and mosquitoes from ruining your outdoor fun this summer. Read
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Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®
Winter Heat or Summer Cooling - It's always good to seal your windows. Here's a LOW COST way of saving money and being more comfortable at the same time.
Friday, May 27, 2011
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Got Leaky Windows? 3 Low-Cost Tips to Fix Them
I used to hang an extra woolly robe in my bathroom because my post-shower route took me past a window so drafty it made me wonder about the etymology of “window.” Turns out it comes from the Anglo-Saxon “vindr” and “auga,” which translates as “wind eye.” How appropriate. Read
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Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®
Getting A Mortgage For Your Chester County Real Estate? Here's How
Monday, April 18, 2011
Although the housing market has been unpredictable in recent months, the existence of a seller’s market and the availability of low interest rates are providing incentives for potential buyers. Obtaining a mortgage, especially one which is attractive to you, is not as easy as it was a few years ago. As a result of the extreme increase in the number of foreclosures, banks have raised their lending standards for all borrowers, and there is little reason to believe that 
these stringent requirements will lessen anytime soon. This tight credit situation affects would-be buyers of Chester County real estate in numerous ways, among them down payments, credit scores, documentation, debt-to-income ratio, and appraisals.
1. Down payments: Requirements will be higher. Generally speaking, to get the best interest rate you need to put down at least 20% of the purchase price of the Chester County real estate. FHA loans are available for a down payment of only 3% to 5% but these loans will include additional costs for insurance and a slightly higher interest rate.
2. Credit scores: You will most likely need a score of 730 for the best rates, whereas the average score for an FHA borrower is about 690. Financial advisors strong urge you to obtain a copy of your credit report six months before loan shopping (you are entitled to one free report from each of the three bureaus annually at www.annualcreditreport.com) and examine it carefully to detect any errors/misinformation.
3. Documentation: Be prepared! Lenders will ask for a great deal of documentation regarding your salary, savings, job stability, debts, and the like. You will need to provide pay stubs for the past 30 days; W-2 forms for the past two years; bank, retirement, and investment account statements; and a listing of debts and monthly expenses. Monthly housing expenses should not exceed 28% of your gross monthly income, and total debt should be less than 37% of that amount. If you are self-employed, you will also have to submit two years of tax returns and possibly a profit-loss statement.
4. Appraisals: Gone are the days of a sure-thing, easy appraisal. Lenders today want a thorough inspection of both the interior and exterior or your Chester County real estate, and the less money put down, the more extensive the scrutiny of the home’s market value. It is wise to include an appraisal contingency in your offer so that your earnest money deposit will be returned to you if the appraisal fails to meet the negotiated price.
How can you find the best rates? Check out available interest rates daily and discloses the best “par rate.” In addition, if you provide contact information, the site will forward that information to the local lender offering the best rate.
If you are considering refinancing your Chester County real estate, take advantage of this calculator to help determine if this is a good financial move for you.
You should also avail yourself of the consumer-friendly good faith estimates (GFE) that lenders are required to give you and with which you can compare offerings. (Search online for “HUD + good faith estimate” for an example.) This form clarifies the type, rate, and features of the loan for which you’re applying. These rates are guaranteed, and if the charges are underestimated, the lender, not you, if responsible for the difference.
Spray Granite for Kitchens and Baths
Tuesday, April 12, 2011
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The Granite Look for Kitchen Countertops Is Just a Spray Away
Updating the kitchen is probably the costliest project on most home owners’ lists. If it’s not in the budget, we hear all about the quick fixes you can do in your kitchen. Read
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Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®
Under-Stairs Storage Stomps Out Clutter
Friday, April 1, 2011
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Under-Stairs Storage Stomps Out Clutter
Sweep out the dust bunnies. Clear away the clutter. Time to put wasted space beneath the staircase to work with customized storage solutions. Read
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Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®
Understanding Real Estate Representation
Wednesday, March 23, 2011
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Understanding Real Estate Representation
Whether you’re buying or selling, it’s important to choose representation that meets your needs in the transaction. Read
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Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®
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Displaying blog entries 151-160 of 175
