Delays in the Home Closing Process

Collier Swecker video blogs about how buyers and sellers in a real estate transaction need to understand that closing delays often happen, whether they are a few days or just a few hours.  Most home closings happen on time or even early, but with so many different people & companies involved delays do happen. We find that most delays are related to the lender / borrower working on clearing up lender’s underwriters conditions.  Very rarely are delays intentional by any party to a transaction, as everyone involved has an incentive to get to closing as soon as possible. We find that many real estate agents are not explaining to their buyers or seller that delays are possible and ensuring that buyers and sellers have contingency plans in place should there be a delay. If you have any questions or comments email me at Collier@MegaAgents.com, visit my website at www.MegaAgents.com.

FHA Loans and VA Loans Cost Home Buyers

Collier Swecker video blogs about how FHA home loans and VA home loan programs for home buyers often sound great because of little or no down payment but what home buyers do not realize is that FHA loans and VA loans have upfront fees and costs that exceed 2% of the total borrowed amount. These upfront costs do not go towards equity and if the buyer spent just a little bit more the entire amount in a conventional loan would go to equity in the property. Also keep in mind that with FHA loans, PMI stays on for the life of the loan. It only takes 5% of the purchase price to get a conventional loan vs. the 3.5% FHA / 0% VA. If you have any questions or comments email me at Collier@MegaAgents.com, visit my blog at www.CollierSwecker.com or my website at www.MegaAgents.com.

 

Mortgage Forgiveness Debt Relief Act Not Extended by Congress

The Mortgage Forgiveness Debt Relief Act has not been extended by our very productive United States Congress and this is going to have a rippling effect on the real estate market and the general economy. This Act has been in place since the beginning of the real estate market’s downward turn in 2007 and has been one vital piece to the turn around of the nation’s real estate market. The Act he made it possible for homeowners facing Foreclosure, Short Sale or Mortgage Modification to exclude the forgiven debt from their calculation of taxable income, saving them thousands, or even tens of thousands of dollars, in taxes that could have been owed. It will be owed at the homeowner / borrowers current tax rate in 2014, unless extended. The idea of extending the Act has bi-partisan support, so the question I have got to ask is why won’t either side bring it to a vote and get this extended. I am not an advocate of governmental intervention in the private affairs / business of the free market but this is one area that they need to intervene. If you have any questions or comments email me at Collier@MegaAgents.com, visit my blog at www.CollierSwecker.com or my website at www.MegaAgents.com.

Will Your Credit Score Be Affected by Applying for a Mortgage

Collier Swecker video blogs about the effect that applying for a mortgage and/or having a mortgage lender pull a homebuyers credit has on their credit score.  It is undisputed that inquiries from potential people seeking to borrow money decreases that persons credit score. One thing that many people do not realize is that people  attempting to get a mortgage (car and student loans too) can shop as many lenders as they wish within a 30 day period and no matter how many inquiries are made, their credit report / score will only be affected as if only one inquiry  was made. Shop away if you want too! Usually the effect on the credit score from a mortgage inquiry is less than 5 points and those points are quickly recovered with time. I would not worry about ever having a lender pull a credit report because even if you have a bad credit score, a good lender can advise you on the best way to get your credit score higher. More important factors that affect your credit score are how timely you pay your bills and your overall debt burden as indicated on your credit report. If you have any questions or comments email me at Collier@MegaAgents.com, visit my blog at www.CollierSwecker.com or my website at www.MegaAgents.com.

Buyers Need to Check Credit Reports Before Applying for a Mortgage

Collier Swecker video blogs about how every person considering buying a home in the next 6 months needs to review their Credit Report prior to visiting a mortgage lender to get pre-approved for a mortgage. Federal Law allows for every person to receive a copy of their credit report once every 12 Months from the “big 3” credit reporting agencies, Experian, Transunion, and Equifax. In order to receive a copy of these credit reports, you simply visit www.AnnualCreditReport.com and request your credit report. It is very important that you don’t confuse www.FreeCreditReport.com with www.AnnualCreditReport.com. AnnualCreditReport.com’s credit report copies are actually free whereas FreeCreditReport.com’s are not free, despite the name. If you see anything that does not appear to be accurate, immediately start the process to fix any issues that you find. It is so much easier to fix credit issues before you start the home loan process.  If you have any questions or comments email me at Collier@MegaAgents.com, visit my blog at www.CollierSwecker.com or my website at www.MegaAgents.com.