Chance Gates' Blog

The question that keeps arising when a client approaches me about buying a home is “what information should I have ready for when I apply for a loan?”.

So to help people out who are getting ready to enter the Reno/Sparks real estate market here is a checklist for you.

Your Residence History:

_____  Your previous addressed for the past two years

_____  The length of time you’ve lived in each place

_____  If you currently rent, your landlord’s name and address (12months)

Your Employment History:

_____  The names and addresses of all your employers for the last two years

_____  The dates you worked at each place of employment

_____  If there have been any gaps in your employment and why

All Outstanding Loans and Credit Cards:

_____  The creditor’s name and address

_____  Your account number

_____  The current total balance you owe and months left to pay

_____  The amount of the monthly payment

Savings, Checking or Investments Accounts

_____  The name and address of each financial institution

_____ Your account number

_____  The current balance or value

Real Estate You Currently Own ( For Each Property)

_____The property address

_____  The estimated market value

_____  The outstanding loan balance(s), the name and address of  the                     mortgage company(s) and your account number(s)

_____ The amount of the monthly payment ( including taxes, insurance and                    HOA dues)

_____  The amount of your monthly rental income (if applicable)

Personal Propert You Own:

_____  The net cash value of your life insurance

_____  The make, year, and value of your automobiles

_____ The value of your furniture, jewelry, or other personal property

Read more at http://chancegates.com/tag/mortgage/

RISMEDIA, February 12, 2010—Thirty-year fixed mortgage rates on Zillow Mortgage Marketplace are currently 4.81%, down six basis points from 4.87% at this time last week. The 30-year fixed mortgage rates hovered at or below 4.80% for most of the past weekend and neared 4.75% on Monday.

Zillow’s real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers through the site, and reflect the most recent changes in the market. These are not marketing rates or a weekly survey.

The rate for 15-year fixed home loans is currently 4.27%, while the rate for 5-1 adjustable rate mortgages is 3.70%.

The volume of mortgage requests in the past week fell 9.4% from the prior week. Of last week’s requests, 34.7% were for refinance loans, 63.5% were for purchase loans and 1.9% were for home equity loans. The prior week, 34.5% of requests were for refinance loans, 63.5% were for purchase loans and 2.1% were for home equity loans.

As a Reno/Sparks real estate professional, I encourage all questions or comments on the Reno/Sparks real estate market or any of the articles posted on this blog.  I can be reached by email at:   chance at ballard-company.com or http://www.myspace.com/chancegates

As credit card companies continue to hike rates and continually change the terms and conditions of your account, it is crucial for credit card users to make the most of their credit. The following tips will help you get on track to using your credit card wisely.

1. Pay on time. Paying your credit card account on time helps you avoid late fees as well as penalty interest rates applied to your account, and helps you maintain a good credit record. A good credit record leads to a higher credit score, which helps you qualify for lower interest rates. Know the date your payment is due. If your bill is due at an inconvenient time of the month- for example, if it’s due on the 10th and you get paid on the 15th- contact your credit card company to see if they will change your billing cycle to fit your cash flow.

2. Stay below your credit limit. If you go over your credit limit on your card, your card issuer could charge a fee and increase your interest rate to a higher penalty rate. To avoid this, keep a record of your spending or check your balance online. Also, be aware that some merchants (for example, hotel and car rental companies) put a “hold” on your credit card based on their estimate of the amount you will charge. This can reduce your available credit until the final charge is processed.

3. Avoid unnecessary fees. Credit card companies not only charge late payment and over-the-limit fees, but also fees for cash advances, transferring balances, and having a payment returned. Some companies charge a fee when you pay your bill by phone. Pay attention to the transactions that trigger these fees. If you need a cash advance, withdraw enough so that you don’t have to take a second cash advance and incur a second fee later in the month. Read your credit card agreement to learn more about the fees that your credit card company charges.

4. Pay more than the minimum payment. If you can’t pay your balance in full each month, try to pay as much of the total as you can. Over time, you’ll pay less in interest charges- money that you will be able to spend on other things, and you’ll pay off your balance sooner.

5. Watch for changes in the terms of your account. Credit card companies can change the terms and conditions of your account. They will send you advance notices about changes in fees, interest rates, billing, and other features. By reading these “change in terms” notices, you can decide whether you want to change the way you use the card. For example, if cash advance fees increase, you may decide to use a different card for cash advances. If you have a card with a variable rate or if you have an introductory rate that is ending, be aware that credit card companies are not required to send you a notice about raising your interest rate. Interest rates are listed on your monthly bill. Read your bill carefully and take note of any changes.

For more information, visit www.federalreserve.gov.

When applying for a home mortgage it is a requirement that a borrower has at least  3 different forms of  “non-traditional” credit over a minimum of 12 months.

According to the Federal Housing Administration “non-traditional” credit is the credit extended  by a landlord, utility company or a cell phone company.

A mortgage lender will either ask for a “Verification of Rent” from a landlord or need 12 months of canceled checks to prove that rent has been paid on time.  Some lender will request proof beyond the 12 months,  so be prepared.  By the way cash receipts will not work.

The utility companies have a “12-month letter of credit”.  Which is basically a list of payment history including the date and payment amount.  If a homebuyer is obtaining these via the internet it is vital that the name, address and company name are on the statement.

There are other forms on non-traditional credit that are harder to prove.  Please remember that all mortgage lenders sets and terms vary.

Being house broke or house poor which ever you prefer, is when the majority of your income goes toward paying bills.

I talked with a loan modification expert this morning, and learned something new (I like it when that happens).

If you are working and have 75% to 125% of your income going to pay bills, you might qualify for a loan modification. This could reduce your interest down between 2-4% for the next 5 years. If you are upside down in your house (owing more than the house is worth) the loan modification might even be able to reduce your principle. The nice part about it is you don’t even have to be behind in your payments.

As a Reno/Sparks real estate professional, I encourage all questions or comments on the Reno/Sparks real estate market or any of the articles posted.  I can be reached by email at  chance at ballard-company.com or http://www.myspace.com/chancegates

FHA interest rates down to 5%
First time tax credit of $8000

Low FICO score programs
First time home buyer programs
Rural housing 100% loan programs
As a Reno – Sparks real estate consultant I encourage any questions or  comments on the Reno – Sparks real estate market or about any of the articles I post.  You can email me at chance@ballard-company.com

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A person I know has been trying to refinance his house for over 14 months. He needed a lower monthly payment in order not to lose his house. His bank was not cooperating with him so he contacted his senator. Once his senator’s office contacted the bank and identified themselves they were transferred to the president of the company. In efforts to shorten a longs story, the interest was reduced to 4% for 5 years and the principle was reduced by $50,000. The most incredible part is this all happened in less than 2 weeks. Once again please understand, I cut a lot of things he did in order to keep this article short.

As a Reno – Sparks real estate consultant I encourage any questions or  comments on the Reno – Sparks real estate market or about any of the articles I post.  You can email me at chance@ballard-company.com

Mortgage rates across the board fell this week, a welcoming sign to potential buyers and home owners looking to refinance.

The 30-year fixed-rate mortgage averaged 5.04 percent this week, a drop from last week’s 5.16 percent. Last year at this time, the 30-year rate averaged 6.04 percent, Freddie Mac reports.

Freddie Mac reported the following for other rates for the week:

• 15-year mortgage rates: averaged 4.68 percent, down from last week’s 4.81 percent. Last year at this time: 5.64 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 5.04 percent this week, a drop from last week’s 5.23 percent. Last year at this time: 5.37 percent
• 1-year ARMs: averaged 4.8 percent, down from last week’s 4.94 percent. Last year at this time: 4.98 percent

“Mortgage rates followed bond yields lower this week as recent economic reports suggest the economy is still slowing, which reduces the future threat of inflation,” says Frank Nothaft, Freddie Mac’s chief economist.

Source: Freddie Mac(02/19/09)

As a Reno – Sparks real estate consultant I encourage any questions or  comments on the Reno – Sparks real estate market or about any of the articles I post.  You can email me at chance@ballard-company.com

The legislation contains two important housing provisions championed by NAR. The final stimulus bill increases the first-time home buyer tax credit to $8,000 and eliminates the repayment requirement of earlier legislation.  In addition, the credit availability has been extended until December 1.

“These important provisions will help bring first-time home buyers to the market and reduce housing inventory,” said McMillan. NAR estimates that the home buyer tax provisions could stimulate up to 300,000 additional home sales, helping stabilize home values and potentially preventing some homeowners from being “underwater” on their mortgage, which can often lead to foreclosure.

The bill also reinstates the 2008 higher loan limits for FHA, Fannie Mae and Freddie Mac. “These higher loan limits are important to make mortgages affordable regardless of where you live. This will also help reduce inventory and improve liquidity in the overall mortgage market,” McMillan said.

This information was obtained from realtor.org.

As a Reno – Sparks real estate consultant I encourage any questions or  comments on the Reno – Sparks real estate market or about any of the articles I post.  You can email me at chance@ballard-company.com

As a Reno/Sparks real estate consultant I always welcome any comments or questions on the Reno/Sparks real estate or any of the articles I posted.  You can email me directly at  chance at ballard-company.com