Please join me for an open house this Sunday, June 28 at 10 Granite Road, New Milford CT. The open house will be from 12 noon until 2:00 pm. This home is truly a magnificent find, listed for $644,900.
Saturday, June 27, 2009
Thursday, June 18, 2009
FHA Origination Fees or Origination Fees - FHA Fees - FHA loans - What does it all mean?
Another must read mortgage post from Jeff Belonger of Infinity Home Mortgage Company, Inc.
It's time to have a quick class on FHA loans, the fees for FHA mortgages, and just a basic understanding on how all of this works. This is truly frustration on my part from some loan officers blatantly lying to borrowers, just to justify their fees and such. It's total BS and it needs to be talked about.
Just today, I spoke to a borrower that is having a concern with their 2nd lender, after the first lender failed them miserably. This lender is charging them 6.00% with 1 1/2 points as an origination fee. His credit scores are above 670 and the purchase price is $272,000 with the minimum down. And they are being charged a $495 commitment fee. With this scenario, they should be getting at least a 5.50% interest rate.
Here is what they are being told.....
So here is the story of one borrower after speaking to their current loan officer. They were told that they are getting 6.00% and not 5.75%, because of his credit score of 670. Well, I don't know one investor as of 6/13/09 that would charge you 1/4% percent, let alone, a 1/4 point, for credit scores above 670. He was told it was because he didn't have a credit score of 700.
Secondly, he was told that out of the 1 1/2 points of the FHA origination fee, that a 1/2 a point goes to FHA and the other 1 pt goes to the lender that they are selling this too. Even if the other lender was collecting something, FHA or HUD doesn't collect origination fees. Sadly, this is the 3rd time just this year that I have heard a loan officer tell a borrower that part of the origination fee goes to FHA. Rut Row... see Pinocchio's nose on the loan officer? His nose should be much longer, because this is one of the biggest lies that I have heard. The commitment fee being charged? Very average in most cases.
So, let's define FHA origination fee or just origination fee. It is explained to be a fee charged for the processing of the loan application. This is even the same definition in the HUD buying handbook. The fee is often expressed as a percentage of the loan amount, which does vary among lenders. The basics behind this, no matter who gives what definition? It is a point to pay for your rate. Either the lender is buying your rate down, or using it for extra profit. In my example above, it is being used for a larger profit.
So, what does HUD/FHA collect on all FHA loans? Just the Upfront Mortgage Insurance Premium (MIP) and the monthly mortgage insurance MMI. The lender gets all other lender related closing costs. I hate saying this, but if a loan officer tells you that part of the origination fee goes to FHA, don't walk, run very quickly and far away. This is not my opinion, but a real cold hard fact.
- FHA Loans - USDA Loans - VA Loans -
- Energy Efficient Mortgages -
- Conventional Loans - 203 k loans -
- Mortgages -
Experience & Knowledge at its BEST !!!
For more information on FHA loans, please go to this link. The FHA Expert
For more information about the 2009 Tax Credit for First Time Homebuyers : 2009 Tax Credit
For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!
Copyright © 2009 by Jeff Belonger
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Wednesday, June 17, 2009
Pet Friendly Real Estate
Technorati Tags: pet friendly real estate,selling your home with pets,moving with pets,new milford ct real estate
Having pets when your home is on the market can be a very sensitive subject. Often because of the circumstances I have made myself available, or made arrangements with others in my office if I can't be available, for each showing. Sometimes it just is not possible to put your dog in a crate all day.
Recently I represented buyers in the purchase of a home. The sellers had a dog named Rocket. Poor dog, he was more like the first Sputnik, not a rocket! He is 17 years old, very deaf, probably not seeing as well as he used to, and to be honest, has a bladder control problem. The homeowners left Rocket loose in the house during the day, so if you had clients that were leery of dogs this might have been a problem. That is, if Rocket had been a bit younger.
While doing inspections, poor Rocket had an accident right in front of us on the rug. My clients were very understanding, Mrs. went under the sink to find something to spray on the carpet, and I searched for a leash to take the dog outside with. I didn't find his leash, but remembered I had a leash in my jeep. So, off we went, Rocket and I, for a saunter around the yard. He did all his business, and to be honest, looked quite relieved! I had called the listing agent and asked if she knew where his leash was, and she said no. I think she must have passed on poor Rocket's story to his owner, because the next time I came, the leash was on the front stairs.
The next 2 times I went to the home I took him out for a little walk. He really was happy. He even stood in front of a cabinet, nudging me, for his treats, which I found as soon as I opened the cabinet door.
Selling a home is hard enough on the human family, but animals suffer too. I know many times dogs are left to roam the home during the day. Sometimes they are caged, or removed for showings, but there are enough times I have seen dogs loose in the house. This can and will cost you a sale! Make provisions ahead of time, do not wait until the last minute. Also make sure your house does not smell like dog!
If you have cats, make sure you keep the litter box clean clean clean. Many buyers are very sensitive to the smell of animals, especially cats. For urine smells, try Natures Miracle or something similar. Do not try to mask the smell with air fresheners. You may want to consider hiring a professional if you are unable to remove the smell.
I am a pet friendly REALTOR. I have attended showings of my listings to take the dogs out of the house when my clients are at work. I make signs up and post on the doors if there are cats in the home that do not go outside.
Remember, pets are family members too! Make provisions for them when selling/showing a home.
I have bonded with Rocket. I wish him well in his new home. I have made yet one more 4 legged friend, and am proud of it.
If you are thinking of buying or selling a home in the greater New Milford area, please give me a call at 203.460.1775. I would be happy to discuss your options. If you prefer, send me an email, andrea@andreaswiedler.com.
I am a pet friendly REALTOR!
For information on moving with pets try these online articles:
Moving with Your Dog, by Kathy Diamond Davis
Moving Preparations for the Dog Owner
Your Cat and the Move, Soothing Post-Moving Stress by Gina Spadafori
Tuesday, June 9, 2009
New Milford CT Weekly Market Update, June 6, 09
Are you looking to buy or sell in the greater New Milford area? Give me a call at 203.460.1775, sign up for a listingbook account to search the area MLS, or send me an email to andrea@andreaswiedler.com. I would be happy to discuss your options.
| SINGLE FAMILY | ||
| W/E 6/6/09 | W/E 5/30/09 | |
| Active inc. under deposit | 303 | 299 |
| Lowest $ | $89,900 | $99,900 |
| Highest $ | $6,500,000 | $6,500,000 |
| Average $ | $484,155 | $480,640 |
| Av. Days on Market | 122 | 121 |
| Under Deposit | 18 | 21 |
| Lowest $ | $172,430 | $229,000 |
| Highest $ | $499,000 | $529,900 |
| Average LP $ | $337,086 | $364,814 |
| Av. Days on Market | 110 | 103 |
| Pending | 18 | 16 |
| Lowest $ | $149,900 | $100,000 |
| Highest $ | $550,000 | $550,000 |
| Average $ | $372,872 | $334,287 |
| Av. Days on Market | 117 | 151 |
| Sold | 3 | 3 |
| Lowest $ | $308,000 | $240,000 |
| Highest $ | $325,000 | $345,000 |
| Average $ | $334,900 | $309,967 |
| Av. Days on Market | 212 | 83 |
Technorati Tags: New Milford CT market watch,real estate in new milford ct
Single Family Sales, May 08 compared to May 09
| May-08 | May-09 | ||
| SOLD | 17 | 16 | -5% |
| AV LIST PRICE | $344,235 | $271,503 | -21% |
| AV SALE PRICE | $332,676 | $253,338 | -24% |
| AV DOM | 109 | 77 | -29% |
| CONDOMINIUMS | ||
| W/E 6/6/09 | W/E 5/30/09 | |
| Active inc. under deposit | 83 | 80 |
| Lowest $ | $59,900 | $69,900 |
| Highest $ | $539,900 | $539,900 |
| Average $ | $204,177 | $208,705 |
| Av. Days on Market | 170 | 176 |
| Under Deposit | 5 | 4 |
| Lowest $ | $79,900 | $99,900 |
| Highest $ | $189,000 | $169,900 |
| Average LP $ | $139,740 | $140,950 |
| Av. Days on Market | 105 | 96 |
| Pending | 13 | 15 |
| Lowest $ | $62,900 | $62,900 |
| Highest $ | $400,000 | $400,000 |
| Average $ | $163,554 | $160,940 |
| Av. Days on Market | 110 | 114 |
| Sold | 0 | 1 |
| Lowest $ | $154,900 | |
| Highest $ | $154,900 | |
| Average $ | $154,900 | |
| Av. Days on Market | 48 |
Condo Sales, May 08 compared to May 09
| May-08 | May-09 | ||
| SOLD | 5 | 3 | -40% |
| AV LIST PRICE | $176,890 | $117,833 | -33% |
| AV SALE PRICE | $172,800 | $115,300 | -33% |
| AV DOM | 113 | 34 | -70% |
The information provided is only as good as the agents who list the properties. If the information is not entered into the multiple listing service in a timely manner, or incorrectly this will skew the data. However, I do believe it to be a fairly accurate assessment of the current real estate market in New Milford.
Information obtained from the Greater Fairfield County CMLS. All information deemed to be reliable but not necessarily accurate.
Friday, June 5, 2009
USDA LOANS – THE RURAL HOUSING LOAN – THE BASICS
Another wonderful post for the first time home buyer from Jeff Belonger, Infinity Home Mortgage Company, Inc. This is a great product which can be used in New Milford, CT! If you are in the market for a new home, or are thinking about selling your property in the greater New Milford area, please give me a call at 203.460.1775. And if you want to find out about the USDA loan, don’t forget to contact Jeff! His information is at the bottom of his post.
I bet you thought USDA was just for your milk and beef. Read on!
Jeff, thank you again for a wonderful post!
USDA loans in many areas are becoming more popular, yet many loan officers still don't know much about them, hence why they still aren't talked about much. Just as FHA loans weren't used as much as they should have from 2000 - 2006, because subprime and some conventional loans were easier for the loan officer to give to the consumer, even though it might not have been the best loan for them. I am sure in some cases, FHA loans are given before the USDA loan because of the lack of education on the loan officers part.... just my .02.
Some great benefits that USDA loans offer -
- It's one of only two types of mortgages that offer real 100% financing, with no money down on the property. The other would be VA loans.
- Just because it says rural development doesn't mean farm land or properties that are miles apart from each other. Ask your loan officer if your property that you are looking to purchase might fit into the property location guidelines.
- There is no monthly mortgage insurance, even with zero down payment. The only other mortgage like this, again, VA loans.
- There is no seller contribution limit, just as in FHA loans, to where the seller can contribute up to 6%. It's look upon as reasonable closing costs. And keep in mind, each state has their own limits to what a lender can make anyhow, usually falling under section 32.
- 100% of the closing costs can be gifted.
- The loan amount can include closing costs and repairs up to the appraised value. (call me or e-mail me for more of an explanation)
- Credit scores of 580 and below are highly scrutinized by USDA. There are many things that need to be looked upon. Scores from 620 and above meet the normal credit standards and get an automatic credit waiver on such things as explaining derogatory credit and rental verifications.
- Normal qualifying income ratios are 29%/41%. You can exceed these ratios if you have scores above 660 and you don't have to apply for a debt-to-income waiver. Those below 660, you have to have compensating factors and apply for an income ratio waiver.
- There are income restrictions, yet as of April 20th, 2009, there will be new income limits for the better. Basically the 4 person income limits will now be for 1 person income limits.
- One important thing to remember, you can't have an in-ground swimming pool if you are using USDA that came from the 2009 stimulus bill. If it's the normal USDA monies allocated yearly, then it's okay, but you need to check on this with your lender.
IMPORTANT - These are USDA's guidelines, yet lenders can after overlays, to where they might be more critical on credit scores or debt-to-income ratios. Please keep this in mind.
- FHA Loans - USDA Loans - VA Loans -
- Energy Efficient Mortgages -
- Conventional Loans - 203 k loans -
- Mortgages -
Experience & Knowledge at its BEST !!!
_________________________________________________________________________________________
For more information on FHA loans, please go to this link. The FHA Expert
For more information about the 2009 Tax Credit for First Time Homebuyers : 2009 Tax Credit
For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!
Copyright © 2009 by Jeff Belonger
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