What is HO-6 Condo Homeowner’s Insurance & Why Do I Need It?

By PJC on August 19, 2010

Are you buying or refinancing a condo here in Philadelphia, PA? Have you been told that you need to get new HO-6 Homeowner’s Condo Insurance coverage? Are you wondering what it is why you need to get it?

HO6

Let me help answer these questions for you.

The Condominium HO-6 Insurance Policy - A HO-6 policy is like a regular homeowner’s policy, but for a condominium unit, and with a lot more extras. “HO-6″ insurance policies cover the interior of the unit and personal property inside–commonly known as “studs in” or “walls in” coverage.

HO-6 Now Required By Lenders – Under the new Fannie Mae (FNMA) and FHA overhaul of condominium lending guidelines, lenders are now requiring that condominium unit owner borrowers obtain HO-6 policies. Sounds like common sense, but HO-6 policies weren’t previously required by lenders, and many condominium unit owners were under the mistaken impression that the master condominium insurance policy covered all damage to the interior of their unit as well as damage to furniture, appliances, etc. That isn’t so. In most cases, that master insurance policy covers common areas such as the hallways, roof, basement, elevator, boiler, and common walkways, for both liability and physical damage–but not the inside of units. Under the new lending rules, an HO-6 insurance policy must provide coverage for no less than 20% of the condominium unit’s appraised value.

What Does It Cover?

- Coverage for damage to personal property such as furniture, computer equipment and clothing
- Fill in the gaps of the master insurance policy and cover losses under master policy deductibles
- Personal liability coverage
- Interior walls and floor coverings coverage
- Coverage for improvements or upgrades (most master insurance policies only cover the original condition and value of the unit).
- Usually has small deductible and fairly inexpensive

High Deductible Protection – Another benefit of obtaining an HO-6 policy is that in certain situations, it will provide gap coverage caused by the often high deductibles on a master insurance policy. These days, condominium associations have been cutting costs by increasing their deductibles, anywhere from $10,000 to even $50,000. What’s more, condominium documents often provide that the unit owner is responsible for losses falling below the deductible. A well-tailored HO-6 policy will protect you in this situation. Here is a good article about the tug-of-war on deductibles.

Special Assessments – HO-6 policies can also provide coverage for unexpected special assessments. Special assessments are one-time, often hefty, capital expenditures imposed on all unit owners for major repairs or improvements. Think $50,000 roof replacement project. HO-6 policies can also cover lawsuits against the association.

How Much Does It Cost? I see a range of costs for the HO-6 coverage ranging from $350-$450 per year, depending on your specific needs.

Philadelphia Mortgage

If you have any questions about buying or refinancing a condo here in Philadelphia, PA or about HO-6 Homeowner’s Insurance Condo coverage, feel free to reach out to us at 484-302-1514

Posted in , , , | Leave a response

2nd Credit Check Could Impact Potential Homebuyers

By PJC on June 25, 2010

What a relief…you have finally been approved for your home mortgage loan and it is only a few days before the BIG closing day and moving into your new home. It sounds like a great time to head down to Raymour & Flannigan and sign up for 4 years interest free financing  for a house full of furniture. After that, stop by Lowe’s and sign up for their credit card to get 0% financing for 12 months for your new appliances.

Philadelphia Mortgage Rates

NO!!!

STOP!!!

DO NOT DO THIS!!!!!!!!!

As of June 1st, 2010, your mortgage lender will be required to re-pull your credit report prior to closing as one of the final checks. Fannie Mae’s new “Loan Quality Initiative” (LQI) is intended to improve loan quality and eliminate the poor underwriting practices that helped accelerate the housing market meltdown.

Unless we (Loan Officers & Realtors) effectively communicate the importance of managing our client’s credit profiles throughout the entire mortgage process, we will have very painful problems arise at inopportune times. For those unaware, I am speaking of delayed closing dates, higher interest rates and worst case – the decline of your mortgage loan at the 11th hour.

For us to prevent this from happening, here are some “DO’s” and “DO NOT’s” to consider while you are going through the mortgage process, regardless of it being a purchase or refinance:

THE DON’TS

- DON’T allow anyone to check your credit for any reason
- DON’T go buy a new car
- DON’T make any major purchases on your existing credit cards
- DON’T fall for the “12 months interest free” tempting advertisement
- DON’T transfer balances from one credit card to another
- DON’T close any credit card accounts
- DON’T max out or over charge your credit cards
- DON’T consolidate your debt into 1 or 2 cards
- DON’T take out a new loan
- DON’T sign up for a new gym membership
- DON’T open up a new cell phone account
- DON’T pay off any collection accounts without calling your loan officer
- DON’T pay anything late
- DON’T dispute anything on your credit report
- DON’T lose contact with your mortgage and real estate professional

THE DO’S

- DO continue to pay everything on time including your mortgage or rent
- DO stay current on all existing accounts
- DO contact me if you are unsure in the least or have any questions

With all of the volatility in today’s mortgage industry and ever changing guidelines, it has never been more important than now to work with a competent and knowledgeable mortgage professional.

If you are starting or in the midst of the mortgage process of buying or refinancing here in Philadelphia and have questions about credit, feel free to call me at 484-302-1514

Posted in , , , , | Leave a response

New Good Faith Estimate Challenges Consumers and Loan Officers

By PJC on June 21, 2010

Are you shopping for a Mortgage here in the Philadelphia, PA area?  Do you have some questions about the new Good Faith Estimate (GFE 2010) and wonder why it is so confusing?

Rest assured that you are not alone. The requirement for the new 2010 Good Faith Estimate (GFE 2010) is challenging to both Consumers and for the Loan Officers providing this new GFE to their clients.  The structure of the new GFE is a sincere regulatory attempt to provide the consumer with the cost information that they would be charged by their lender and to require lenders to stand by their consumer quote.

GFE 2010 (Good Faith Estimate)

GFE 2010 (Good Faith Estimate)

The outcome has only partially provided the desired result with the new GFE.  The form mixes some costs that are lender costs and some that are not, it also mixes some costs they may or may not actually pay.  What it does NOT cover is the estimated full monthly payment and a comprehensive escrow estimate. This new GFE form has prompted thousands of emails and phone calls to Housing Urban Development (HUD) and a few hundred GFE sessions sponsored by Mortgage Banking Associations and Attorney firms throughout the United States.

All of this effort has still not answered many questions and structural problems on this Federal form.  It is further complicated by inconsistencies between the new GFE and many State Mortgage Banking regulations.

With all this said what should we expect?

-    1st – Loan Officers should take the extra time necessary to assist the consumer in understanding the new form – what it means and where it falls short.

-    2nd – Loan Officers need to work closely with all parties involved in the transaction to assist the consumer in navigating through the loan process from origination to the closing table.

-    3rd – In time, complete and sufficient clarification will be provided for the new GFE form and it will be slightly amended in order to remove the confusion for the consumer.

One way our team helps combat the shortcomings of the new GFE is by using a “Total Cost Analysis” (TCA)  form that lists out up to 4 mortgage options, side by side, including full monthly payments (including taxes and insurance) as well as a “Total Cash Needed to Close Figure.” This Total Cost Analysis is extremely helpful for consumers to supply much needed information to supplement the new GFE and allows them to truly make an informed mortgage financing decision.

If you only do only one thing, be sure it is to work with the BEST. Truly dedicated Mortgage Professionals invest much time and many resources into tools that help their clients make better decisions, such as the Total Cost Analysis.

Anyone can quote a rate over the phone and send a GFE via email, but few Loan Officers take the time to meet in person, discuss all aspects of the mortgage process, and be by your side at the closing table.

If you are here in the Greater Philadelphia Area and have any questions about the new 2010 GFE, feel free to give us a ring at 484-302-1514. We would love the opportunity to sit down in person and answer your questions and help you achieve your short and long term financial goals.

Posted in , | Leave a response

What is Title Insurance?

By PJC on May 19, 2010

Are you purchasing or refinancing a home here in Philadelphia, PA? You are probably wondering “What the hell is title insurance and why the hell do I need it?”

Title Insurance Philadelphia, PA

This is a great question, so let me help explain what it is.

A Word About Real Estate – Real estate has traditionally been a family’s most valuable asset. It is a form of wealth that is protected by many laws. These laws have been enacted to protect one’s ownership of real estate and the improvements located on the land. The owner, the owner’s family, and the owner’s heirs have rights or claims in and to the property that you are buying. Those who may have an interest in or lien upon the property could be governmental bodies, contractors, lenders, judgment creditors, the Internal Revenue Service, or various other individuals or corporations. The real estate may be sold to you without the knowledge of the party having a right or claim in and to the property. In addition, you may purchase the real estate without having any knowledge of these rights or claims. In either event, these rights or claims remain attached to the title to the property that you are buying until they are extinguished.

The Past Can Determine Your Future – Generally, a person thinks of insurance in terms of the payment of future loss due to the occurrence of some future event. For instance, a party obtains automobile insurance in order to pay for future loss occasioned by a future “fender bender” or for the future theft of the car. Title insurance is a unique form of insurance. It provides coverage for future claims or future losses due to title defects which are created by some past event (i.e., event prior to the acquisition of the property.) These risks are far less obvious than those protected against by automobile insurance, but can be just as devastating. The following information will answer some commonly asked questions about title insurance.

Will You Get Clear Title?
It is of utmost importance that you receive clear title to the property when you purchase real estate. In order to do so, you must first be informed of any existing rights or claims that may, in the future, threaten your title and possession to the property. Title insurance provides you with this twofold protection.

How Do You Find Out What Claims Exist?
In order to determine the status of title, a title or abstract company conducts a diligent search of the public records for those documents associated with the property. They then examine those recorded documents in order to determine if there are any rights or claims that may have an impact upon the title to the property. The title search may reveal the existence of recorded defects, liens or encumbrances upon the title such as unpaid taxes, unsatisfied mortgages, judgments and tax liens against the current or past owners, easements, restrictions and court actions. These recorded defects, liens and encumbrances are reported to you prior to your purchase of the property. Once reported, these matters can be accepted, resolved or extinguished prior to the closing of the transaction. In addition, you are protected against any recorded defects, liens or encumbrances upon the title that are unreported to you and which are within the coverage of the particular policy issued in the transaction. This is the first benefit you receive from title insurance.

What About Undiscovered Claims?
The title to the property that you have purchased could be seriously threatened or lost completely by hazards which are considered “hidden risks.” “Hidden Risks” are those matters, rights or claims that are not shown by the public records and, therefore, are not discoverable by a search and examination of those public records. Matters such as forgery, incompetency or incapacity of the parties, fraudulent impersonation, and unknown errors in the records are examples of “hidden risks” which could provide a basis for a claim after you have purchased the property. In order to protect you against this possibility, the title or abstract company provides insurance coverage for such claims. This is the second benefit you receive from title insurance.

How Does a Title Insurance Policy Protect Against All These Claims?
If a claim is made against your insured title, the title or abstract company protects you by: (1) Defending your title, in court if necessary, at no cost to you, and (2) Bearing the cost of settling the case, if it proves valid, in order to protect your title and maintain your possession of your property.

Title Insurance Protects Your Asset
Title insurance gives you the assurance that possible clouds on title to the property you are purchasing – which can be discovered from the public records – have been called to your attention that such defects can be corrected before you buy. Additionally, it is insurance that if any undiscovered claims covered by your policy arises out of the past to threaten your ownership of real estate, it will be disposed of, or you will be reimbursed exactly as your title insurance policy provides.

Only One Premium
Unlike other forms of insurance, the original premium is your only cost as long as you or your heirs own the property. There are no annual payments to keep your Owner’s Title Insurance Policy in force.

Title Insurance Philadelphia, PA

Not only does title insurance protect your interest in your property, the lender also requires you to obtain it to ensure their interest in your property is not impeded at all.

If you have any questions about title insurance here in Philadelphia, PA, feel free to contact me at 484-302-1514.

Posted in , | Leave a response

6 Easy Steps to Premeditate Your Refinance

By PJC on April 20, 2010

So, you are finally looking to refinance and you, like everyone else, want to get the best rate. Why not? You are the one that has to live with that rate for the next 5, 10, even 30 years! You’ve also heard all the nightmare stories about dishonest loan officers that “over‐promised and under‐delivered”, leaving homeowners throughout the country with surprisingly higher rates and terms than promised when they initiated the loan process. So, what’s the best strategy for getting a great rate on your purchase or refinance?

Philadelphia Mortgage Rates Friendly Home Mortgage Paul J Carson

Well, we feel the best practice for consumers is premeditation. I know what you are saying…. Huh? How does that work? It’s simple! There are 6 easy steps that will give you the best shot of securing a great rate on your refinance. Of course, the mortgage industry isn’t perfect and there are always plenty of challenges that can trip up the loan process. That being said, there is NO DOUBT that the below process gives you the best chance of getting a great loan at a great rate and not ending up on a mortgage complaint blog somewhere.

1. Shop For Trust Before Shopping For Rate ‐ Too many people shop for rate blindly on the internet before researching the loan officer who is actually quoting the rate. This is a sure‐fire way to get burned by the old bait‐and‐switch game. Loan officers and lenders who operate in a call‐center, boiler‐room model are very good at playing the rate game. They will tell consumers what they want to hear and what will get them the business, only to guide them down a slippery slope to higher rates and/or terms at the closing table. Don’t believe us. Google “mortgage complaints” and enjoy reading for the next several months.

2. Chose Your Loan Officer – Since this is one of the biggest financial investments of your life, you want to make sure that the loan officer you pick is looking out for your best interests. Of course your unique requirements, such as the type of loan you need and your location, should also influence your choice. Most importantly, you want a loan officer with a “client‐for‐life” mentality that is willing to hold your hand through the tricky mortgage process – from the initial application all the way to the closing table. Again, you are shopping for trust and your priorities are unique to you.

3. Application and Analysis ‐ After filling‐out an application over the phone, online or in person, have your loan officer run a side‐by‐side analysis for you. If there are multiple possible options, this will give you great clarity on which option is the best for your specific scenario. There are several ways to do this, but most of the best loan officers use a tool called Mortgage Coach. This analysis tool shows how each option, including the current one, will impact your net worth over time (5, 10, 20, 30 years).

4. Get the Ball Rolling ‐ Once you see the options and decide which one is best for you, give your loan officer the green light to order the appraisal and get your application submitted to underwriting, even if the rate that you have targeted is still not available. The appraisal, underwriting, title search, and other components of the mortgage process can take place without your rate being locked. You will hear this referred to as “floating” the rate. As long as you are dealing with a loan officer who monitors mortgage bonds on a daily basis and you aretargeting a realistic rate, you will have a good chance of getting the rate you have targeted.

5. Give Your Loan Officer the Go‐Ahead ‐ Once you have determined your ideal rate and have submitted a full application, you and your loan officer are just waiting for the right opportunity to pull the trigger on a rate lock. Often times, with the current market volatility, the windows of opportunity could be very small. There have been many days in the last couple years when those windows are only open for a matter of hours. In fact, there have plenty of volatile days where lenders have changed their rate sheets as many as five times ‐ that’s five times in one day! So, chose the rate and give your trusted loan officer the go‐ahead to pull the trigger on a lock at that rate first and call you to congratulate you second. You will feel great when you get this call!

6. Go to Closing ‐ Once your home has been appraised, the loan has been approved by underwriting and your rate has been locked, you are ready to go to closing. Now is the real reward for using a trusted loan officer because you can rest assured that your loan officer will be at your side to explain all of the documents and deliver the rate and terms as promised. This sounds like a given, but too many people have learned the hard way that many loans do not end so happily. We feel very strongly that, if a loan officer is going to hand‐deliver the loan documents to the closing, he/she is definitely going to deliver the rate and terms that were promised at the beginning of the process.

Do you feel like you need extra help jump‐starting your search for a loan? Then check out Lending180.com, the only place on the internet where you can Shop For Trust. There, you will find certified loan officers with a “client‐for‐life” mentality.

Lending 180

On Lending180.com, you can search profiles of loan officers who have been certified as Local, Trusted and Involved. They have pledged to hold their clients’ hands through the tricky mortgage process all the way to the closing table. Although most loan officers DO NOT attend their closings, ALL Lending 180 loan officers have pledged to be there at their closings to ensure that they deliver exactly what they promise.

Of course, all of our certified loan officers are great, but we have empowered you to choose the one that is best for you. Choose based on loan specialties, languages spoken, location, ratings or client testimonials… it’s up to you! Again, you are shopping for trust and your priorities are unique to you. Read more about Mortgage Coach in the specialties section of the loan officers’ profiles. Although most loan officers DO NOT attend their closings, ALL Lending 180 loan officers have pledged to be there at their closings to ensure that they deliver exactly what they promise. An easy way to kick‐off the premeditation process is by using Lending180.com to find your local, trusted and involved loan officer.

Feel free to give me a call directly at 484-302-1514 with any questions.

Good luck!

Posted in , , | Leave a response

Why Are Mortgage Interest Rates Going Up?

By PJC on April 9, 2010

You may have noticed that Mortgage rates are ticking upwards over the past 3 weeks. Interest rates for 30-year fixed-rate mortgages increased to 5.31% from 5.04% the previous week, marking the third straight week of rate increases, and the highest rate since August 2009.

There are still a few out there that believe that the recent increase in interest rates (treasuries and mortgages) is a result of the Fed ending its $1.25T MBS (Mortgage Backed Securities) purchases, which concluded on March 31st.

freddie-mac-fannie-mae

This notion is TOTALLY WRONG and suggests a lack of understanding of what drives interest rates, and why rates are increasing now. The increase in rates has nothing special to do with the MBS markets. Rates are on the rise because each day the view on the economic outlook is improving and that the Fed has ended almost all quantative easing; with stated objective of tightening monetary policy after the near collapse of the banking system in 2008.

The only thing that will take rates back lower is a change in sentiment about the future growth of the economy—a double dip. While we do not discount that as a possibility with high unemployment and a housing market that is nowhere near the rebound that many believe, as long as money flows to equities the path for rates is up. How high is the question; our estimate is that the bellwether 10 yr treasury will stay reasonably low and not breach 4.25%-4.30% with mortgage rates on 30 yr fixed holding under 6.00%, more likely 5.75%. It is a moving target, but unless there is a serious increase in the inflation outlook (which we do not expect this year) rates should be reasonably supported.

The proof in the pudding on how much of an impact the Fed’s exit will have on mortgages will be on any significant rallies in treasuries and how mortgage rates will move on a strong rally.

In the meantime, our team subscribes to a service called RateWatch. This allows us to help our clients secure the lowest possible rate at the most opportune time to Lock In. We are able to see what exact the Mortgage Bond markets are doing on a minute by minute basis.

For example, this is what happened this past Wednesday (April 7th, 2010) where Rates improved slightly throughout the day. By anticipating the market improvement, we were able to save people 0.125% in their rate (or 0.25% in points) for their interest rate just during that day.

RW2

We also have the ability to track short and long term strends . This allows us to offer sound advice about what direction the Rate market is expected to head. This powerful tool helps our clients save money and reduce stress.

RW

If you have any questions at all about Mortgage Interest Rates, call us at 484-302-1514.

Posted in | Leave a response

Will Your Mortgage Professional Still Be Employed in 30 days?

By PJC on March 31, 2010

Due to the enactment of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE), we are merely 30 days from the national deadline of 4/30/10 for all Mortgage Loan Originator (MLO) licensees to pass the National and State Components of the SAFE MLO Test.

As it stands today on March 31st, 50% of all MLO’s in the United States have not completed this requirement or have continued to fail their exams. 50%!!! HALF!!!

Your mortgage is the most important financial decision of your lifetime and average Americans obtain 2-3 throughout the course of their entire life. This being said, you shouldn’t entrust this financial decision with just anyone off the street, or internet for that matter.

Who are you working with?

Will they be allowed to originate your loan after April 30th?

Work with someone who is Local, Involved, Trusted, Highly Recommended and most importantly Licensed.

I have been sleeping well since last fall knowing that I passed my Federal, Pennsylvania & New Jersey exams with flying colors. Meanwhile, 10’s of thousands of MLO’s are scrambling to schedule their exam at the last minute or are already looking for new employment.

We MLO’s have known about this looming deadline for well over 1 year.

Whats does it say about your mortgage professional is they have not wrapped this up by now?

SAFE MLO Compliance Requirements

If you have any questions about this, call me directly at 484-302-1514.

Posted in , , | Leave a response

Top 5 Reasons Why Loans are Being Denied!

By PJC on March 30, 2010

If it seems like loan approvals are becoming more difficult these days, you would be correct. After talking with several underwriters and loan officers over the past few weeks, I wanted to share with you the Top 5 reasons why loans are being turned down. Almost everyone I spoke with shared the same information and concerns.

So why are the banks getting tougher?

I have heard some people say that the banks don’t have enough money to lend or that there is a lack of liquidity in the markets. That simply is NOT true at all. As you can see below the banks are more than flush with reserves and in fact should be lending a lot more money.

34652_5f00_11-excess-reserves2

Unfortunately as more and more loan losses accumulate and they don’t show any signs of dissipating anytime soon, bank underwriting rules the are getting stricter across the board to prevent future losses on all new loans. It is because of this fear of future losses that all of the underwriters admitted that the pendulum has swung too far the other way. Here are the top 5 reasons why loans are getting turned down, they are in no particular order.

1. Won’t Allow Flipped Properties

“Flipped properties” are homes that were bought in the past 90 days and are to be sold for a reasonable profit, most of the time these are bought by investors. Every underwriter admitted that they have to turn down this type of loan everyday. Each lender has a different set of rules for flipped properties, but unfortunately many of these loans get submitted to a bank that does not accept this type of loan. For example, even though the FHA eliminated their “90 day flip rule” recently, not all FHA lenders have followed suit and many still carry their own rules.

It is important to know which bank allows flipped properties within 90 days if a buyer is purchasing this type of property. Also it is important to note that if the property is being sold for more than a 20% profit, the buyer may have to pay for a second appraisal with some lenders, this may cause a further delay in the transaction.

2. Properties Overpriced and/or Appraisal Values Coming in Much Lower

Properties are going into contract overpriced and over valued and because of this appraisals are coming in under value. Some underwriters are seeing appraisals come in as much as 5-10% or more under contract price. Then because there is such a disparity between the contract price and the appraisal, both the buyer and seller cannot agree on a price or the buyer cannot afford to come in with any more funds and the loan falls apart, as the lender will base their loan to value financing approval for the buyer off the appraised value and not the contract price.

I think this will cease to be a problem soon once the $8k tax credit and low rates go away, as there will be fewer buyers bidding on properties driving values up.

3. Not Adhering to Strict Changes in Condominium Guidelines

Condo guidelines are changing all the time. For example, is there Litigation in the complex and if so what type of litigation? if it is structural litigation it will probably be turned down immediately.

Are there more than 15% of the tenants delinquent with their HOA dues? If so then Fannie and Freddie for example will not lend in this complex. Is the complex FHA approved? Is the complex Fannie Mae approved? All underwriters recommend contacting the HOA initially and asking questions to try and dig up as much info as possible on the subject complex.

As condo’s are the type of property that most first time buyers can only afford, it is very important to do some homework upfront, as addressing all of these questions will ensure your loan will get approved.

4. The Loan File does not Qualify for the Loan Program

In many circumstances the loan file does not get submitted for the right loan program or to the correct lender. A good example is let’s say a husband previously bought a property in his name only before they were married, but now he has a short sale on his credit. When the wife with the clean credit tries to buy a home in her name only and tries and qualify through FHA financing, they will not qualify because the FHA must take into consideration both of their credit reports.

5. No Explanation of the Buyer’s Motivation

This is a subject that is especially annoying to an underwriter, whereby loan files are being submitted without any explanation. It is important to note that underwriters are not giving the benefit of the doubt so they will turn these files down immediately. For example a buyer lives in a 2800 sq feet home on an acre that is worth $550k, but goes into contract on an 1800 sq feet condo worth $325k. An underwriter will turn this down immediately becuase she assumes that this is probably an investment property purchase, (because this is considered buying down and why would they move out of their nicer bigger home).

The correct thing to do here is to provide a letter of explanation written by the buyers advising that they are near retirement age and the upkeep of this bigger house is too much for them. As homes are much more affordable now and they are are preparing for retirement age in 3 years, they want to buy a smaller house that will not have any stairs or a large yard to maintain. This now makes sense to an underwriter and will get approved in most cases.

Do your homework before you buy a property!

I hope these 5 reasons provide an insight into what the underwriters are looking for on transactions. Remember sometimes it is taking almost two weeks for an underwriter to decision a loan, so if the loan is not worked up correctly at the beginning you can find yourself in the middle of escrow with a loan application that just got denied. This is why it is so important that you work with a mortgage professional that understands the market and will take the time to answer all these difficult questions that will arise.

If you are looking to get pre-approved for a home loan or are running into difficulties with your current loan application because of one of the aforementioned reasons above, please feel free to call me at 484-302-1514.

Posted in , | Leave a response

Paul J. Carson becomes 1st CMPS Institute Certified Mortgage Coach serving the Greater Philadelphia, PA Area

By PJC on March 18, 2010

I am VERY excited to announce that I am the 1st Certified Mortgage Coach to serve the Greater Philadelphia, PA area. I was part of the inaugural class of 100 selected Loan Officers across the country to complete the course offered through the CMPS (Certified Mortgage Planning Specialist) Institute along with Mortgage Coach Community.

certifiedmortgatecoach

You are probably wondering what that means?!? Good question!!!

A Certified Mortgage Coach understands that for most Americans, the mortgage decision of their home is the single biggest financial planning decision they will ever make.  We do everything possible to help ensure that clients make the most informed decision possible, one that will help them achieve their long-term financial goals and security. In short, a Certified Mortgage Coach works to:

1.     Save money
2.     Reduce stress
3.     Increase wealth

How a Certified Mortgage Coach delivers on the promise to…

Save Money
•         By analyzing the total cost of different mortgage strategies over time
•         By analyzing and recommending various debt reduction strategies
•         By using RateWatch to ensure improved rate lock execution

Reduce Stress
•         Is a byproduct of truly informed decision making
•         When options are clearly documented and analyzed
•         By making complex concepts simple

Increase Wealth
•         By always considering the long view
•         By making smart decisions
•         By reducing debt over time

How We Help Our Partners:

  • For Our Realtor Partners: We educate your clients about the process to ensure that your buyers are given the proper education, which helps you focus more time listing and showing properties.  We also have strategies to help you get more qualified buyers into your properties and to help sell your listings quicker.
  • For Our Financial Planner & CPA Partners: We work within the framework that you and your client have already established to make a wise, educated purchase or refinance decision. Our focus is to work in tandem with you and your clients to implement both short and long terms financial goals. Often times, the mortgage is overlooked as a key part of this strategy.

If you have any questions about this program and how it helps our clients and partners, feel free to give us a call at 215-874-0125

CertifiedMortgageCoachCircle

Posted in , , | 1 Response

USDA Rural Development Out of Money by April 2010?

By PJC on March 10, 2010

Serious homebuyers here in the Philadelphia, PA suburbs may have more than the First Time Homebuyer Tax Credit motivating them to buy a home before April 2010!  I just read an e-mail announcement from the United States Department of Agricultural announcing that it is very likely that the USDA will have exhausted all funds available for single family home loans by the end of April, 2010.The USDA Mortgage Loan Program allows for $0 down payment and has no monthly mortgage insurance for qualifying properties in more rural settings. This announcement creates additional urgency for homebuyers to get a home under contract and closed before these funds for these loans run out.

According to USDA they have stated that “Once funding is exhausted, the Agency will not issue Conditional Commitments subject to receipt of appropriate funds. This is because it is not certain when additional funding will be available.”  What this means to many homeowners is that if they wait until the last minute to take advantage of the First Time Homebuyer Tax Credit and they intend to use the USDA loan program there is a VERY good chance there will not be money available to fund the loans.  The bottom line is that you could likely lose out on this super affordable loan program AND you will lose out on the opportunity to take advantage of the tax credit and the potential of getting your $8,000.

The solution is to act fast and get your new home under firm contract as quick as possible and get your loan application started.  If you wait to get a home under contract towards the end of the first time homebuyer tax credit you will likely miss out entirely.  If you would like us to get your home purchase on the fast track, send us an e-mail right away or give us a call at (215) 874-0125.

Posted in , , , | Leave a response

Next Page »