Ruhl & Ruhl REALTORS» 1862 Mortgage

Proper Planning for Your Mortgage Application

ruhlhomes — Tue, 01 May 2012 22:07:07 +0000

With good preparation, most things are easier. That works in mortgages too! Today, I want to give you some ideas that can make your mortgage experience less painful.

Income Items:

Gather your documents. Today, many people will have to produce 2 years’ complete tax returns, including W2′s, 1099′s, K1′s, and all the schedules, as well as a month’s worth of pay stubs.
Be prepared to explain them. Deductions in your returns and your pay stubs may impact the income your lender will use to qualify you which, in turn, has a big impact on the loan you will get.
Have a breakdown of base pay versus overtime for both your pay stubs and 2 years’ W2′s. Lenders treat overtime (and bonus income) differently than your base pay. Be prepared to explain any changes over the last few years because your loan officer will ask you about it.
Start accumulating your bank statements. Lenders look back 3 months from when you sign your contract of sale.
You will have to explain any and all large deposits (which are defined as deposits greater than your regular pay check) because lenders want to make sure you haven’t taken out any new loans that aren’t on your credit report.
Avoid any significant cash deposits. However, if you did have a cash deposit, understand that the lender will have you source it (a bill of sale and DMV receipt for that motorcycle, for example).
If you will be receiving a gift, consult your loan officer on how to document it (from the donor’s ability to how you deposit it).
Ask your loan officer to run your credit and go over it with them. Believe it or not, most credit reports contain errors. Best to identify them and get working on correcting them as early as possible.
Do what you can to pay down your balances to under 30% of available credit to help you get the best score possible.
Do NOT close accounts or pay off collection accounts without discussing it with your loan officer. Either one of these logical moves can actually have a negative impact on your score.

Asset Items:

Start accumulating your bank statements. Lenders look back 3 months from when you sign your contract of sale.
You will have to explain any and all large deposits (which are defined as deposits greater than your regular pay check) because lenders want to make sure you haven’t taken out any new loans that aren’t on your credit report.
Avoid any significant cash deposits. However, if you did have a cash deposit, understand that the lender will have you source it (a bill of sale and DMV receipt for that motorcycle, for example).
If you will be receiving a gift, consult your loan officer on how to document it (from the donor’s ability to how you deposit it).

Credit Items:

Ask your loan officer to run your credit and go over it with them. Believe it or not, most credit reports contain errors. Best to identify them and get working on correcting them as early as possible.
Do what you can to pay down your balances to under 30% of available credit to help you get the best score possible.
Do NOT close accounts or pay off collection accounts without discussing it with your loan officer. Either one of these logical moves can actually have a negative impact on your score.

When buying a home, remember the Boy Scout motto, “Be prepared”. Following these suggestions will make your loan approval easier and less stressful.

Please remember that each mortgage company and application is different so for the most accurate information always talk to your preferred loan officer. To find out more information, contact Jane Schneider at 1862 Mortgage or any 1862 Mortgage Loan Officer for more information at 866.441.1862 or Info@1862Mortgage.com.

1862 Mortgage has partnered with Ruhl&Ruhl REALTORS to offer a convenient one-stop experience for both home buying and home financing needs nationwide. 1862 Mortgage is a DBA (Doing Business As) of Shelter Mortgage, an operating subsidiary of Guaranty Bank. As part of a strong and stable bank, 1862 Mortgage offers the promise of longevity and security along with a commitment to service excellence.

Information provided by: KCM Blog

FHA Mortgage Insurance Changes Coming April 9th

ruhlhomes — Mon, 02 Apr 2012 19:49:14 +0000

Soon it will cost a little more for some mortgage loans.

The Federal Housing Authority (FHA) will have a new premium structure for FHA-insured single-family mortgage loans, increasing the Annual Mortgage Insurance Premium (MIP) it collects by 0.10 percent. These premium changes will impact new loans insured by the FHA, effective April 9, 2012. Loans with amortization terms of 15 years or less, and a loan-to-value ratio of 78% or less, remain exempt from the Annual MIP.

FHA reports that this increase is a part of ongoing efforts to encourage the return of private capital to the housing market and to protect capital reserves, according to a statement.

In addition, the Up Front Mortgage Insurance Premium (UFMIP) will increase from 1 percent to 1.75 percent of the base loan amount, effective April 9, 2012 as well. This increase applies regardless of the amortization term or loan to value ratio. FHA will continue to permit financing of this charge into the mortgage. The FHA estimates that the increase to the upfront premium will cost new borrowers an average of approximately $5 more per month.

The above increases will impact all newly originated FHA mortgages for purchase and refinances, unless the homeowner qualifies for the new reduced mortgage insurance rates with an FHA streamlined refinance. The changes to mortgage insurance do not apply to FHA’s reverse mortgages.

FHA Streamlined Refinances will have reduced FHA mortgage insurance premiums IF the FHA loan being refinanced was endorsed on or before May 31, 2009, effective on case numbers issued on or after June 11, 2012. Upfront mortgage insurance premiums will be reduced from 1% to 0.01% of the base loan amount and the annual mortgage insurance will be reduced to 0.55% of the loan amount. Borrowers must be current on their existing FHA insured mortgage.

If your FHA loan being refinanced was endorsed June 1, 2009 or later, then the reduced rate does not apply.

To find out more information, contact Jane Schneider at 1862 Mortgage or any 1862 Mortgage Loan Officer for more information at 866.441.1862 or Info@1862Mortgage.com.

A family-owned company since 1862, Ruhl&Ruhl REALTORS annually sells nearly 3,800 homes in eastern Iowa, western Illinois and southwestern Wisconsin and is the largest privately-owned real estate company in Iowa. Headquartered in Davenport, Iowa, the company has 280 sales associates and 50 employees based in 11 sales. In addition to residential sales, Ruhl&Ruhl REALTORS offers services in relocation, new home sales, farm and land sales, senior services, real estate investment, mortgage services through 1862 Mortgage and insurance services through the Nelson Brothers Agency. For more information on Ruhl&Ruhl REALTORS, visit their website at www.RuhlHomes.com

1862 Mortgage Offers Home Affordable Refinance Program

ruhlhomes — Wed, 29 Feb 2012 21:04:06 +0000

A new financing package is being offered to help homeowners who have been unable to get traditional refinancing because the value of their home has declined.

The new Home Affordable Refinance Program (HARP) assists homeowners who have a higher loan balance than the current value of their home, yet allows refinancing into lower mortgage interest rates.

“This is a great opportunity for homeowners who have not been able to refinance and take advantage of current low rates,” said Jane Schneider, President of 1862 Mortgage, a participating lender. “I encourage those individuals to see if they qualify for this great new product.”

The loan must be owned or guaranteed by FreddieMac or FannieMae and the homeowner must have a good credit history. At this time, the new mortgage balance may not exceed 125% of the home’s current value.

To see if you qualify, contact Jane Schneider at 1862 Mortgage or any 1862 Mortgage Loan Officer for more information at 866.441.1862 or Info@1862Mortgage.com.

Funds Available for Military Homebuyers in Illinois

ruhlhomes — Wed, 18 Jan 2012 14:54:41 +0000

A new financing package is being offered to help all qualified Illinois veterans, active military personnel, reservists and Illinois National Guard Members with the purchase of a home.

The financing package, Welcome Home Heroes, through the Illinois Housing Development Authority provides qualified veterans or active reservists a $10,000 forgivable loan over two years for down payment and closing cost assistance, 30-year fixed rate mortgage that has an affordable interest rate and an optional mortgage credit certificate to reduce federal income tax liability.

“This is a great program that all service personnel should take advantage of,” said Jane Schneider, President of 1862 Mortgage, an IHDA approved lender offering the package. “Time is of the essence, as only $10 Million total is available.”

The Welcome Home Heroes financing package is designed to assist qualified Illinois veterans, who do not need to be first time homebuyers, and active military personnel, reservists and Illinois National Guard members, who must be first time homebuyers. All buyers must qualify based on income and purchase price limits, and the home must be purchased as their primary residence within the state of Illinois.

Interested buyers please contact 1862 Mortgage loan officer, McKenzie Mathews, for additional information at 309.743.8060 or McKenzie.Mathews@1862Mortgage.com.

“As A Home Seller, Why Should You Care About Involving A LENDER In The Home Selling Equation?”

ruhlhomes — Fri, 16 Dec 2011 22:08:28 +0000

One thing many real estate agents have learned is the importance of having a team of professionals to facilitate a smooth transaction. Having a lending expert on the team, can make available the following services to you…all for FREE:

They stand ready to screen all potential buyers. Today’s lending landscape is a rapidly changing environment. Programs and requirements are changing regularly. A good loan officer should have a reputation for being on top of current guidelines and finding the best solutions for prospective clients. You need to know that when you accept an offer, the buyer can actually close.
Financing is an important component to getting a home sold. Whether it’s marketing flyers, carrying costs, unique mortgage strategies (such as buy-downs and Sales Concessions) or even loan programs to differentiate your home (ex. loans that can incorporate monies for the purchase and renovation of a home), the best loan officers take pride in their ability to help increase the number of people for whom your home could be a fit. More prospects equals higher sales prices.
In so far as a professional loan officer is seen as an educator, they would want to offer you the chance to tune into some of their online seminars (called webinars) and videos. As an example, some lenders have webinars with topics ranging from “How Lenders Look At A Mortgage Application” to “Renovation Lending” to “Getting Your Optimal Credit Score”, as well as videos that can fully explain your Good Faith Estimate. They are constantly striving to be a resource for everyone they come in contact with.
Lastly, your loan officer knows that most home sellers become home buyers. Not only will they run your credit and analyze your income and assets, but they will also pre-approve you for your next mortgage, typically free of charge.

Did you know that Ruhl&Ruhl is partnered with 1862 Mortgage to make the buying and selling process of your home as seemless as possible. There are many other advantages of choosing a Ruhl&Ruhl agent. Check them out on RuhlHomes.com.

Provided by: KCM Blog

What If I Don’t Currently Qualify For a New Mortgage?

ruhlhomes — Fri, 04 Nov 2011 16:35:02 +0000

Ruhl&Ruhl realizes that when the idea or dream of purchasing a home starts to circle around in your mind, majority of the time the title above does not accompany that thought. And while this type of situation is unbelievably frustrating, keep in mind that you do have options. Ruhl&Ruhl Realtors along with 1862 Mortgage is here to help.

Let’s start from the beginning, say you have begun your home search and you meet with a Lender. That Lender will review your credit along with income and assets to determine if you qualify for a new loan. What happens when you find out you do not qualify?

First, find out what steps you will need to take to get qualified. These may vary and include a credit improvement plan, a savings plan to accumulate your down payment and closing costs and/or a plan for how long you must be on your job or earning variable income.

These are steps that you can work on to become a preferred buyer. They may take a few months or a few years, if you have had a more serious credit event such as a recent foreclosure or bankruptcy. However isn’t it important to get and work on a plan if you truly want to purchase a home?

An important thing to keep in mind is that you will want to find and work with a lender that has the time to assist you in making these steps a reality. You do need to know there is no “Magic Bullet” and that it will take work and discipline on your part.

Mortgage qualification guidelines are still constantly changing and in most cases tightening. It may not get easier for anyone to qualify for a mortgage loan in the short term. We at Ruhl&Ruhl Realtors partnered with 1862 Mortgage will always be here to help you achieve that next step. The pre-approval process is completely free. Our 1862 Mortgage Loan Officers are trained to help you improve and plan so you can work towards the goal of homeownership.

Please call 563-441-1776 or visit RuhlHomes.com/Mortgages to get pre-approved or to speak with a loan officer today.

some infomration provided from Allen Tate Blog.

Top 10 Tips for First-Time Homebuyers

ruhlhomes — Tue, 01 Nov 2011 20:22:45 +0000

There is a popular saying that exists and while the latter half of the saying varies depending on time, date and season, it always begins with “It’s hard to imagine …”

For instance, you could be driving along, staring at the snow-covered landscape and someone will chirp up and say, “It’s hard to imagine that in six months time these trees will be covered in leaves.” Being inspired by a client tutorial many first time home buyers will say “It’s hard to imagine that just a little over a month ago I was starting the process of buying my first home”.

Ruhl&Ruhl has taken the topic of buying a home for the first time and broken it down into top 10 tips that we think will be the most beneficial for all who take on this adventure.

Talk with a Realtor®. They know the ins and outs of real estate and can give you all of the facts to help make the best decision for yourself.
Keep an open mind. As a first-time homebuyer, it’s important to understand that you won’t be living in the same home forever. It’s your first home so you will have to compromise.
Check your credit score. Imagine navigating a new area without a map. Well, that would be like searching for homes without knowing what home you can afford. Your credit score gives you an indication of your price point so be sure to get this in order before you start.
Do the white glove test. Buying a home is one of the biggest purchase decisions you will ever make so inspect the property thoroughly, white gloves and all.
Location affects price. The closer you get to a popular area, the more you’ll spend. In a less trendy location, you’ll find a larger house for the same money. This falls under compromising.
Check out the area. You should visit the area at several times during the day: in the morning afternoon and evening. This may help you determine what the area is like as far as traffic during the work commute and for safety at night.
Get pre-qualified. This way, going into the home search process you will be prepared for exactly what you can afford.
Better safe than sorry. If you aren’t the Bob Vila type, look into getting a home warranty. A home warranty can help cover major repairs like a leaky roof, a heating or air conditioning system, appliance breakdowns and electrical problems, just to name a few. As a new homeowner, you don’t need surprise expenses.
Insurance isn’t one-size-fits-all. If you want coverage that is personalized to suit your needs and budget, go with an independent insurance agent, who works with many carriers and can offer more options.
Offer is more than price. An offer is much more than a price you put forth to a seller. It involves warranties and fees and due diligence and everything in between.

When the adventure is done and you are finally settled into your new home, something that you purchased and worked so hard to achieve, Ruhl&Ruhl hopes that for every client they sit back and think, “It’s hard to imagine not being a homeowner”.

For all real estate, mortgage or insurance needs please visit RuhlHomes.com.

Fixed-rate Mortgages Fall to 6-Month Lows

ruhlhomes — Mon, 13 Jun 2011 20:05:32 +0000

Local lenders saw rates on 30-year and 15-year, fixed-rate mortgages move to a six-month low this past week, an important factor in the housing market recovery.

Jane Schneider, President of 1862 Mortgage, said rates have slipped again presenting a great opportunity for buyers, as well as those ready to refinance. The average 30-year fixed-rate mortgage, with no points, fell to 4.5%, while the 15-year fixed rate mortgage, with no points, fell to 3.875%. A 5/1 Portfolio ARM (adjustable rate mortgage) fell to 3.625%.

“Whether you are interested in buying a new home, investing in real estate or refinancing your current home, now is the time,” Schneider said. “Borrowers would be wise to lock in rates, as things can change quickly and rates have been very unpredictable in this market.”

National analysts say the drop and the lack of ability of borrowers to qualify and take advantage of these rates due to new regulations, could severely limit who qualifies for a loan, further impacting the housing market. Locally, though, these low rates should only positively influence our markets, said Caroline Ruhl, President of Ruhl&Ruhl REALTORS.

“Our markets have been sheltered from the major ups and downs and the number of foreclosures has remained low compared to the rest of the country,” Ruhl said. “These historically low rates just improve our markets and show consumers that now, more than ever, is a great time to purchase a home.”

Consumers should also understand the importance of loan pre-approval with new government standards, Schneider added. In light of the radically different requirements for getting a loan now, compared to several years ago, Ruhl also advises all sellers to get preapproved for a loan before putting their property on the market.

“We’ve had many deals fall apart after receiving accepted offers because the sellers discovered they could no longer qualify for a loan to purchase a new home,” Ruhl said. “Many sellers who qualified under the old lending requirements when they purchased their home no longer qualify under the new lending requirements.”

1862 Mortgage is a DBA (Doing Business As) of Shelter Mortgage, an operating subsidiary of Guaranty Bank. Guaranty Bank is a federally chartered bank that was founded in 1923 and has over 170 branch locations nationwide. For more information on 1862 Mortgage or to get pre-approved, visit their website at www.1862Mortgage.com.

A family-owned company since 1862, Ruhl&Ruhl REALTORS annually sells nearly 3,800 homes in eastern Iowa, western Illinois and southwestern Wisconsin and is the largest privately-owned real estate company in Iowa. Headquartered in Davenport, Iowa, the company has 284 sales associates and 50 employees based in sales offices located in Bellevue, Bettendorf, Cedar Rapids, Clinton, Coralville, Davenport, DeWitt, Dubuque, Maquoketa, and Muscatine, in Iowa, and in Moline, Illinois. In addition to residential sales, Ruhl&Ruhl offers services in relocation, new home sales, farm and land sales, senior services, real estate investment, mortgage services through 1862 Mortgage and insurance services through the Nelson Ruhl Agency. For more information on Ruhl&Ruhl, visit their website at www.RuhlHomes.com.

If you are intersted in getting a free pre-approval please call toll free, 866.441.1776 or visit RuhlHomes.com/1862 Mortgage.

Mortgage Insurance Cancellation: The Myths and Realities

ruhlhomes — Fri, 10 Jun 2011 16:41:30 +0000

When it comes to private mortgage insurance (MI), there are several myths that exist that make buyers reluctant to consider a conventional loan with MI as an option when purchasing a home. One of the more common misconceptions is that cancelling MI is a difficult—not to mention time-consuming—process.

The irony is that the majority of buyers don’t harbor those same beliefs or reservations about an FHA insured loan when, in reality, FHA coverage may be less easily cancelled, or take longer to cancel, than MI.

HPA Makes Cancellation Clearer
When it went into effect as a new federal law, the Homeowners Protection Act (HPA) of 1998—which applies to both FHA and MI insured loans—required lenders and servicers to provide disclosures regarding MI for residential loans obtained on or after July 29, 1999. Prior to this, consumers were responsible for requesting MI cancellation if they met two factors: one, their loan balance was paid down to 80 percent of the property; and two, they had a good payment history.

While many lenders obliged consumer requests to drop MI coverage, consumers had sole responsibility for keeping track of their loan balance.

The HPA established three different times when a lender or servicer must notify consumers of their rights.

At loan closing, lenders must disclose:
• The right to request MI cancellation and the date on which the request can be made
• The requirement that MI be automatically terminated and the date on which this will occur
• Any exemptions to the right to cancellation or automatic termination
• A written initial amortization schedule for fixed-rate loans only

Each year, loan servicers must send borrowers a written statement that discloses:
• The right to cancel or terminate MI
• An address and telephone number to contact the loan servicer for determining when MI may be cancelled

When MI coverage is cancelled or terminated, lenders must send a notification to borrowers stating:
• MI has been terminated, and the borrower no longer has MI coverage
• No further MI premiums are due

Termination of Coverage
Under the terms of the HPA, mortgage lenders or servicers must automatically cancel borrower-paid MI coverage when the mortgage has amortized to 78 percent of the original property value, with all unearned premiums returned to the borrower within 45 days of the cancellation or termination date. This provision also requires that the borrower be current on mortgage payments required by the terms of the loan, and if the loan is delinquent on the date of automatic termination, a lender must terminate the coverage as soon as the loan becomes current.

Cancellation of Coverage
Also under the HPA, a homeowner has the right to request MI cancellation when the mortgage balance reaches 80 percent of the original property value. All payments must be current, meaning a homeowner must not be 30 days late on a mortgage payment within one year of their request, or 60 days late within two years.

However, a borrower can only initiate a cancellation request for FHA based on their prepayment of the loan, and even then, it can only be requested beginning five years after the loan origination date.

With MI, homeowners can request cancellation based on prepayment of the loan, as well as an appraisal. Despite falling property values, it’s possible for homeowners to gain enough equity in their home to request cancellation in less than five years based on a home appraisal.

Keep checking RuhlHomes.com for more information on the housing market.

Provided by: RisMedia

Fannie Mae Announces 3.5% Buyer Assistance on REO Properties

ruhlhomes — Wed, 13 Apr 2011 15:26:54 +0000

Fannie Mae announced Monday that borrowers purchasing a Fannie Mae-owned property through HomePath, the GSE’s REO disposition operation, will receive up to 3.5 percent in closing cost assistance.

The initial offer must be submitted on or after April 11, 2011, and the sale must close on or before June 30, 2011 to be eligible for the incentive. Fannie Mae said it can give no assurance on the time required to close, but initial offers submitted after May 15, 2011 are particularly questionable for closing by the incentive deadline of June 30.

To qualify, buyers must reside in the home as their primary residence; sales to investors are excluded.

“Attracting qualified buyers to the market and reducing the inventory of vacant homes remains essential to stabilizing neighborhoods and helping the market recover,” said Terry Edwards, EVP of credit portfolio management at Fannie Mae.

“Since interest rates remain low, the incentive will go a long way toward helping even more families buy a new home so this is a great time for Fannie Mae to offer some assistance,” Edwards added.

In Arizona and Texas, there will be a $500 bonus available for selling agents whose buyers purchase and close on a HomePath property by June 30, 2011, and meet the terms and conditions of the closing cost incentive.

Retail and public entities are also eligible for the special buyer-assistance offer; however pool and auction sales are not eligible.

The D.C.-based government-backed mortgage firm rolled out a 3.5 percent subsidy for REO buyers in January of last year. Fannie Mae says it has seen considerable success with the program and as a result, has extended or restarted the temporary buyer assistance incentive several times – a strategy aimed at helping the GSE unload a bloated supply of repossessed homes.

The company acquired 262,078 single-family REO properties through foreclosure in 2010, compared with 145,617 in 2009. As of December 31, 2010, the company’s inventory of single-family REO properties was 162,489. Fannie says the carrying value of the company’s single-family REO was $15 billion as of the end of last year.

All Fannie Mae-owned REOs are listed on HomePath.com and most listings include detailed property descriptions, photographs, and community and school information.

Many Fannie Mae-owned properties are also eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing, which offers homebuyers an opportunity to purchase with as little as 3 percent down.

Keep checking RuhlHomes.com for the most up to date information on the housing market.