are you still on the fence with real estate? uh, really?

March 8th, 2010

on the fence

Still on the fence?

It is understandable that some individuals or couples have put off buying their first home because they are smart, responsible people  and have strived to make the best financial plans for their future. Maybe they had been waiting on Real Estate prices to be in their favor, maybe they were looking for great rates. Prior to say – right now – this made a lot of sense. Right now, there are no excuses. Period.  With low rates and incredible property prices, now more than ever is the time to get off of the fence and take advantage of this opportunity for your potential First Time Home Buyers $8,000, $6500 Tax Credits*.

Pack up. It’s time to move.

We all crave our own space, good neighbors to share a back yard barbecue with, a place for the kids, some flowers and a few tomato plants. Many first time home buyers can’t wait to say goodbye to property managers that enforce restraints where they live, and decorate their own homes in their favorite colors to express their personal style.

As the responsible, financially savvy people you are, investing instead of throwing money away on rent, makes so much sense to you. Home ownership has historically outperformed the stock market in investment return for years. Interest rates are at historic lows, home prices are down, and sellers are motivated! Looking for great Realtors? Just ask. We partner with the best Realtors and provide you with HD Video tours of local real estate listings. Check it out here: http://youtube.com/user/empowerhomeloans

Your best days are truly ahead.

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Want to know more about your credit, and the mortgage process? Just ask. We have some great tools to help you – and it’s all free. If you would like a copy of our Client Information Pack (CIP) filled with lots of helpful advice about your credit, lending, and mortgage guidelines, simply navigate to the contact page, send an email, or complete the online application for more helpful information.

To claim your copy, simply click here:

Get your copy now

or visit the Empower Home Loans website by clicking here:

Empower Home Loans Website

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Posted in Credit Facts, FHA, First Time Home Buyer, Home Loans, Mortgage, Mortgage Tips, Personal Finance, Refinance, VA | No Comments »

life after foreclosure or bankruptcy – your best days are ahead

February 22nd, 2010
broken piggy bank

In short, buying a home after foreclosure and bankruptcy is possible. There are a few more hoops to jump through, but again, it is possible. Think of your next purchase as a new beginning. You want to do things differently this time – maybe you want to make sure you can save more each month to build up your savings and reserves. Maybe now you have paid off other debt or have created a better budget to get debt behind you once and for all.
The question isn’t ‘Will banks lend to me?’ The question is ‘What will banks be requiring of me now?’ and ‘What can I be doing now to be ready?’ As with most financial things, it is always a numbers game. Banks want to see reserves in the bank (a few months worth in addition to a down payment of sorts) and a way to demonstrate that you are back on your feet and have been making payments on time. Often times, for FHA and VA loans, this is at least a year. For conventional, it can be closer to two years plus.
However – there are creative ways to secure financing on a property. Typically called hard money loans, a borrower can arrange financing much faster by leveraging said properties equity, or other asset value. Interest rates are usually higher, but as a temporary resolve, this can work out very well. There is also owner financing. If structured correctly, you can then apply for a refinance loan as opposed to a new home purchase mortgage which may have better advantages in some cases. If you would like more information on these types of loan scenarios, visit: http://empowerhomeloans.com for more information.

empty pockets

what can I do now?

  1. Rebuild your credit:
    Getting mortgage months after foreclosure may not be impossible but you should be prepared to accept higher rates of interest. So, what you need doing is to rebuild your credit before you apply again.

    Make sure you are making on-time payments on bills, credit cards etc. If possible, negotiate to lower the interest rate on your credit cards as that will help you save more money each month. Also check your credit report for any inaccurate information being reported to the bureaus. This can improve your credit fast.

    Try to open new accounts – even pre-paid Visa cards – just make sure that they report to the bureaus. Make consistent payments – this is what lenders will be concerned about when they are reviewing your mortgage scenario.

  2. Save for down payment:
    To get the best loan program, you’ll have to put down 15-20% of the home purchase price as the down payment. The more you put down, the less you need to borrow and the less you need to pay. See also: Gifting – complete article can be found by searching this blog ;-)
  3. Prepare a budget:
    You probably have – and good for you – if you haven’t – do it! . Make sure you save a lot and most importantly, make sure you stick to it. A budget will help you maximize your savings.
  4. Check your affordability:
    Go for a house that is affordable. Also, calculate the monthly payments (including property taxes and insurance premiums) on your new loan and see if it’s well within your reach. You can find a great, easy to use calculator on the Empower Home Loans home page or within the Mortgage Education Center: http://empowerhomeloans.com/
  5. Check the housing market:
    It is a good idea to have a Realtor that you can trust. Have them walk you through the local housing market.  If you’re in a declining market, be careful when you buy. A good Realtor will gladly show you local trends and where the best deals are. More equity will help your purchase power.

First thing is first – get your lender relationship built – find a company and representative you trust and stick with them – next, get a referral for a great Realtor, and when the timing is perfect, everything will fall into place.

Your best days are truly ahead – make them happen!

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Want to know more about your credit, and the mortgage process? Just ask. We have some great tools to help you – and it’s all free. If you would like a copy of our Client Information Pack (CIP) filled with lots of helpful advice about your credit, lending, and mortgage guidelines, simply navigate to the contact page, send an email, or complete the online application for more helpful information.

To claim your copy, simply click here:

Get your copy now

or visit the Empower Home Loans website by clicking here:

Empower Home Loans Website

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Posted in Credit Facts, FHA, Home Loans, Mortgage, Mortgage News, Mortgage Tips, Personal Finance, VA | No Comments »

Should I Rent or Buy?

February 15th, 2010

buying our first home

Typically with financial decisions it is always a numbers game. Whatever makes the most sense financially will be blatantly obvious by looking at the numbers. With home ownership, the same is true – but there are added benefits to consider.

pride of ownership

Pride of ownership is the number one reason why people yearn to own their home. It means you can paint the walls any color you desire, turn up the volume on your home theater system, attach permanent fixtures and decorate your home according to your own taste. Home ownership gives you and your family a sense of stability and security. Not to mention establishing your green thumb and starting your own garden – or enjoying your own privacy by building a custom fence in your backyard. The opportunities are endless. It’s making an investment in your future. Not to mention watching Transformers 2 on that custom home theater system will be amazing!

my home theater!

appreciation

We’re not talking about just ‘appreciating’ your home for the fact that it is your home. We’re talking real money here. Although real estate moves in cycles, sometimes up, sometimes down, over the years, real estate is always consistently appreciating in value. With average annual appreciation of 6%, building equity in a property is rewarding to say the least. Making $50,000 in equity in your home can be easier than you may think.

For instance: take a home valued at 250k.

1st year: 250k + 6% = $265,000

2nd year: 265k + 6% = $280,900

3rd year: 280,900 + 6% = $297,754

4th year: 297,754 + 6% = $315,619

mortgage reduction builds equity

Each month, part of your monthly payment is applied to the principal balance of your loan, which reduces your obligation. The way amortization works, the principal portion of your principal and interest payment increases slightly every month. It is lowest on your first payment and highest on your last payment.

rates are insane

In fact, rates are so well below historic averages that it should make all current and prospective homeowners take notice of this once-in-a-lifetime opportunity. Your looking at special products and rates that can be below 5% APR! Couple that with incredibly low home prices? Just look at a Rent VS Buy calculator. The rent vs. buy calculator will allow you to consider the other payments that you are going to have to make if you own a property. These types of fees include taxes, insurance, and other homeowner fees to see if owning a home is the right financial decision for you. One of the best calculators we’ve seen is offered by the New York Times and can be found by clicking here: http://www.nytimes.com/2007/04/10/business/2007_BUYRENT_GRAPHIC.html The time to move is now!

Your best days are ahead.

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Get started right now – it’s easier than you think!

Want to know more about your credit, and the mortgage process? Just ask. We have some great tools to help you – and it’s all free. If you would like a copy of our Client Information Pack (CIP) filled with lots of helpful advice about your credit, lending, and mortgage guidelines, simply navigate to the contact page, send an email, or complete the online application for more helpful information.

To claim your copy, simply click here:

Get your copy now

or visit the Empower Home Loans website by clicking here:

Empower Home Loans Website

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Posted in Credit Facts, FHA, First Time Home Buyer, Home Loans, Mortgage, Mortgage Tips, Personal Finance, VA | 1 Comment »

down payment gifts – your ticket to home ownership

February 7th, 2010

Gifts for your mortgage purchase

You’re responsible. You’ve got a great job – and have for a while. You having been paying off debt and are working on a savings plan for the unexpected things that life seems to bring. You also know you can afford a house payment and have run the numbers over and over in your head. It all seems to make perfect sense – except for the down payment.

ok…we’re doing it – we’re going to buy a home

If you don’t qualify for FHA/VA loan programs you must go the conventional financing route – and the bottom line is that you need money in the bank – money that has been seasoned, or you need a the down payment in the form of a gifting. Don’t know a family member that would gift you the money? You may be surprised. Those that are fiscally able to assist, would love to help – especially with a sound investment such as Real Estate. Especially in this incredible market (once in a life time prices) You may be surprised. Just ask.

here’s how

If a family member is willing to provide you with funds for the purchase of your house free and clear of any monthly repayment obligation, then you’re in the clear. The important thing is that the bank doesn’t to see any more outgoing cash flow obligation than necessary. Any arrangement you determine between parties is completely up to you. You simply need a gift letter from them stating that this is the case. So how do you write a gift letter? That’s easy.

A gift letter should be general statement of intention: A letter to the lender from the donor stating a gift of money has been made to the buyer in order to purchase specific property. The relationship of the donor and donee is stated, as well as the amount of the gift.

for the giver

You are so generous. Just note that you can give up to $12,000 per giftee tax-free. The remainder of the gift is subject to a gift tax, however, the tax can be applied against the unified tax credit (the most you can give in your lifetime). So, if are giving less than a few hundred thousand dollars, you are covered.

Your best days are ahead.

-Empower

Want to know more about your credit, and the mortgage process? Just ask. We have some great tools to help you – and it’s all free. If you would like a copy of our Client Information Pack (CIP) filled with lots of helpful advice about your credit, lending, and mortgage guidelines, simply navigate to the contact page, send an email, or complete the online application for more helpful information.

To claim your copy, simply click here:

Get your copy now

or visit the Empower Home Loans website by clicking here:

Empower Home Loans Website

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Posted in Credit Facts, FHA, First Time Home Buyer, Home Loans, Mortgage, Mortgage Tips, Personal Finance | 4 Comments »

3 Reasons to Refinance Before it is Too Late

January 28th, 2010

hurry before it's too late

Why should I refinance my home mortgage? The answers are not complex – but simple: there are three major reasons to refinance.

  1. A. Lower Interest Rates - If you can pay less to borrow the same amount of money, this is a no brainer. If the current interest rates are lower than they were when you bought your home, a refinance is a smart financial move. You’ll save money.
  2. B. Real Estate Value - All over the United States, home values have lessened, but are   moving up – and when the full rebound comes – as it always does, it will change very quickly. The bubble will always burst, but it will always comes back, too. This is why many people are taking advantage of this to improve on their home or pay of old debts. Take advantage of your home equity without making a drastic change to your monthly payment – or refinance into a lower rate and lower payment – you’ll be glad you did!
  3. C. Flexibility - Banks today have so many different programs from interest only mortgages, 3 or 5 Year ARM’s and fixed rate mortgages – you will find what you need: a mortgage that fits your lifestyle and budget.

Refinance – Fixed or Adjustable ARM?

Refinancing is very popular right now – rates are low – Today there are several different refinancing options of which you can take advantage. For instance you can choose a fixed rate or an adjustable rate mortgage. A fixed rate mortgage will usually be for a term of 15 or 30 years and the interest rate will stay the same for the duration of the loan. An adjustable rate mortgage (ARM) means that after a term – 3 or 5 years, your interest rate can change (usually upwards). If you don’t plan on staying in your home for the long term, a 5 year ARM or a 3 year ARM can be a great choice for you. You can refinance almost anytime if need be – and the money you save will more than make this worth your while.

Refinancing a Home Loan – Interest Only Option

Have you heard of interest only mortgage options? Some find this program very beneficial and flexible, and depending on your current situation an interest-only refinance might be a solid choice. Best for short term financing with a real estate plan, the program is just as it sounds – you are only required to pay payments towards your interest each month. This usually reduces the payment significantly. You can always put money towards your principle when you want, it just takes a larger payment. Some people have used this option to get into a home that would otherwise be too expensive for their budget. This can be risky, but for some it’s worth the risk for the flexibility. An Empower Mortgage Planner should be able to advise if this kind of plan is right for you. There are pros and cons to every refinance option so make sure you’re educated before choosing.

Your best days are ahead,


Empower Home Loans website

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Bankrate: Mortgage Rates Move Lower.

January 24th, 2010

Mortgage News

NEW YORK, Jan 07, 2010 /PRNewswire via COMTEX/ —-

The average conforming 30-year fixed mortgage decreased this week to 5.26 percent, according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.43 discount and origination points.

The average 15-year fixed mortgage fell to 4.67 percent while the larger jumbo 30-year fixed rate inched lower to 6.14 percent. Adjustable rate mortgages were mixed, with the average 3-year ARM rising to 4.80 percent and the 5-year ARM dropping to 4.74 percent.

Mortgage rates started off 2010 by breaking a streak of five weekly increases. Optimism about the economy was the driving force behind December’s increase in mortgage rates, and heightened demand for the now higher-yielding mortgage-backed and government issued debt helped bring rates lower this week. Mortgage rates are closely related to yields on long-term Treasury securities and mortgage-backed bonds. The risks are clearly tilted toward higher mortgage rates in 2010 as continued improvement in the economy and a return to job growth are both consistent with higher – not lower – mortgage rates.

The last time mortgage rates were above 6 percent was Nov. 2008. At that time, the average rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 5.26 percent, the monthly payment for the same size loan would be $1,105.65, a savings of $136 per month for a homeowner refinancing now.

Look at rates from an objective view over the course of the last 5 years. You will see a trend to follow that makes todays move more important.

Historical Mortgage Rates

30-year fixed: 5.26% — down from 5.33% last week (avg. points: 0.43)

15-year fixed: 4.67% — down from 4.73% last week (avg. points: 0.43)

5/1 ARM: 4.74% — down from 4.77% last week (avg. points: 0.40)

For a full analysis of this week’s move in mortgage rates, go to http://www.empowerhomeloans.com/

To learn more of historical mortgage rates and where they are headed, follow this link.

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Empowering Haiti

January 20th, 2010

On January 12th, 2010, a series of massive earthquakes devastated the country of Haiti. The pain caused by this catastrophe is great…but there is hope.

Together, we can help show Haiti that their best days are ahead.

Empower Home Loans is donating $100.00 from every new purchase and refinance mortgage loan to the Red Cross to help the unfortunate in Haiti. For more ways to help, visit:

Red Cross: www.redcross.org
Stiller Strong: www.stillerstrong.org
UNICEF or CARE: Google Disaster Relief

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Posted in Credit Facts, FHA, First Time Home Buyer, HELOC, Home Equity Lines of Credit, Home Loans, Mortgage, Mortgage News, Mortgage Tips, Personal Finance, Refinance, Uncategorized, VA | No Comments »

the truth about your credit

January 16th, 2010

my credit

how FICO scores work

When you apply for credit – whether for a credit card, a car loan, or a mortgage – lenders want to know what risk they’d take by loaning money to you. FICO scores are the credit scores most lenders use to determine your credit risk. You have three FICO scores, one for each of the three credit bureaus – Experian, TransUnion, and Equifax. Each score is based on information the credit bureau keeps on file about you. As this information changes, your credit scores tend to change as well. Your 3 FICO scores affect both how much and what loan terms (interest rate, etc.) lenders will offer you at any given time. Taking steps to improve your FICO scores can help you qualify for better rates from lenders.

what’s in your credit report

Although each credit reporting agency formats and reports this information differently, all credit reports contain basically the same categories of information, your social security number, date of birth and employment information are used to identify you. These factors are not used in scoring. Updates to this information come from information you supply to lenders.

‣ trade lines:

These are your credit accounts. Lenders report on each account you have established with them. They report the type of account (bankcard, auto loan, mortgage, etc), the date you

opened the account, your credit limit or loan amount, the account balance and your payment history.

‣ inquiries:

When you apply for a loan, you authorize your lender to ask for a copy of your credit report. This is how inquiries appear on your credit report. The inquiries section contains a list of

everyone who accessed your credit report within the last two years. The report you see lists both “voluntary” inquiries, spurred by your own requests for credit, and “involuntary” inquires, such as when lenders order your report so as to make you a pre-approved credit offer in the mail.

‣ public record and collection items:

Credit reporting agencies also collect public record information from state and county courts, and information on overdue debt from collection agencies. Public record information includes bankruptcies, foreclosures, suits, wage attachments, liens and judgments.

Consequently, most borrowers don’t know the simple steps to improve their credit. The truth is, it is not difficult! Typically, borrowers have been given the wrong information. If you would like an free Empower Home Loans Client Information Packet, simply email info@empowerhomeloans.com and get your copy today. You will be on your way to deciphering between the real facts and fallacies of your credit.

The Empower Home Loans CIP (Client Information Packet) is full of helpful information including:

‣ Rate vs. Product
‣ Understanding Your Credit Report
‣ How FICO Scores Work
‣ Establishing Credit
‣ What’s In Your Credit Report
‣ Making Payments
‣ Managing Balances
‣ Applying for New Credit
‣ Closing Credit Accounts
‣ Keeping Your Credit Report Accurate
‣ Credit Facts and Fallacies
‣ The Mortgage Process Timeline
‣ Glossary of Common Mortgage Terms
‣ Streamlined Empower Application
‣ Rate vs. Product
‣ Understanding Your Credit Report
‣ How FICO Scores Work
‣ Establishing Credit
‣ What’s In Your Credit Report
‣ Making Payments
‣ Managing Balances
‣ Applying for New Credit
‣ Closing Credit Accounts
‣ Keeping Your Credit Report Accurate
‣ Credit Facts and Fallacies
‣ The Mortgage Process Timeline
‣ Glossary of Common Mortgage Terms
‣ Streamlined Empower Application

You will find lots of helpful advice about your credit, lending, and mortgage guidelines. Navigate to the contact page, send an email, or complete the online application for more helpful information.

To claim your copy, simply click here:

Get your copy now

or visit the Empower Home Loans website by clicking here:

Empower Home Loans Website

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Posted in Credit Facts, First Time Home Buyer, Mortgage, Mortgage Tips, Personal Finance | 2 Comments »

Simple Steps to Financial Health

January 8th, 2010

managing money

1. control your spending:

If you spend less money you’ll have more money available to pay down debt and save for the future. Simple enough, right? Write down your expenses for a month to see where your money is going. You’ll be surprised by how easy it is to find places to scale down your spending.

2. create a debt re-payment plan:

If you have credit card debt, write down everything you owe and make a plan to pay it off. Make a time frame for this payoff. Start with small items you can act on right away– it will make tackling the bigger debt much easier. Also, try buying with cash only. It’s a sure-fire way to prevent increases in your credit card debt.

3. reduce your interest and payments:

With rates as low as they are now, reducing your mortgage debt by a refinance loan can be an incredibly wise move for your financial budget. By reducing your rate and payments, you can save more, or pay off other debt faster, by spending the same amount as you are now – paying off more of the principle on your home loan.

4. set up an auto-savings plans:

Arrange with your bank or mortgage broker/professional to have a set amount deducted from your checking account to a savings account each pay period. Of the Americans who have been able to contribute to emergency savings funds, automatic withdrawal is the most popular method, according to the Consumer Federation of America. Imagine the peace of mind it brings knowing you have money set aside for emergencies!

5. boost your retirement savings:

If your employer offers a 401(k) plan, increase your contributions. If you don’t have an employer plan, open an Individual Retirement Account (IRA) and arrange for contributions to be made automatically from your checking or savings account. You can contact an Empower representative for more information.

6. create a long-term plan:

“If you fail to plan, you plan to fail.” This is surprisingly true. Write a list of your long-term goals, such as buying a home or saving for college or retirement. If you plan carefully, your plans will come true!

7. protect yourself – save:

Be prepared for the unexpected by making sure you, your family, your assets and investments are insured and fully covered. This means adequate insurance coverage, and a dedicated savings account for the ‘what ifs’ of life. If you do not have a will, make 2010 the year you establish a life plan.

8. find a financial buddy:

Accountability and great ideas come from like minded people. Share your financial resolutions with a friend, colleague, or family member – you’ll be more likely to keep them. Find someone else who wants to turn around their debt or cut their spending, and establish a mutual support system.

Your best days are ahead,

Empower.

For more information, visit http://empowerhomeloans.com or http://empoweryourbest.com

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Did your Mortgage Broker pass their test?

January 3rd, 2010

Proficient Mortgage Lending

competent confidence

IN recent months, loan officers around the country have begun taking federally mandated licensing exams, which many in the industry consider beneficial for borrowers in the long run. The exams are largely a response to the mortgage industry collapse, which according to some critics was a result of poorly qualified and unregulated loan officers’ providing loans to borrowers who had little chance of paying them off. According to the Conference of State Banking Supervisors, which oversees the testing, 31 percent of the roughly 10,000 people who took the national test from July 30 to Nov. 30 failed it, and about 27 percent did not pass the state-specific component. Test questions came in part from a pool of hundreds provided by industry executives and regulators. The four sections cover federal laws, general mortgage knowledge, the loan-origination process and ethics.

pass, or else

If nearly one in three loan officers can’t pass the exam, how can borrowers enter the mortgage process with confidence? “I’d say this is a good thing for consumers in that it requires a level of proficiency.” said Bill Matthews, the president of the State Regulatory Registry, a subsidiary of the Conference of State Banking Supervisors. Applicants who fail the test must wait 30 days before they can try again. If they don’t pass the test by the state-imposed deadline, they cannot lend in the state. Licenses are renewed yearly. While loan offices need only pass the exams once, they must keep up with various continuing education requirements.

crushing the ‘easy-out’ loophole

The exam is not required of everyone — only those who work for mortgage brokerages. Employees of conventional banks like Bank of America, JPMorgan Chase, or Empower Home Loans need only register with the National Mortgage Licensing System, which is administered by the state banking supervisors. However, Empower Home Loans is taking a different approach to this banking ‘easy out’ licensing. As a mortgage banker and mortgage broker lending source, Empower Home Loans has required that all of their Loan Consultants be licensed in the state in which they originate loans, in addition to the NMLS licensing.

best platform + competent consultants = best choice

“General proficiency and competence is crucial as we face this new era of mortgage lending. Creating new ways of executing mortgage lending and financial services is the primary reason the Empower network was created. Education must be the main constituent – from the sales professional to the end consumer.” said a co-regional manager of the new Financial Services division at Empower. They added that Empower has taken the reigns in, “Doing business in a new way – showing the client all of their options and guiding them step by step to meet their goals.” when responded to a question of Empower’s new approach to financial services.

Your best days are ahead.

Empower.

To learn more of Empower, visit:

www.empowerhomeloans.com

www.empoweryourbest.com

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Posted in Credit Facts, First Time Home Buyer, Home Loans, Mortgage, Mortgage News, Mortgage Tips, Personal Finance, Refinance, Uncategorized | 8 Comments »

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