Real Estate Information Archive

Ashton’s

1^st Time Home Buyer

Stimulus Plan

Buy a home with Ashton and get these discounts!!!

1) Hamilton Bryan

10% off one-time appliance purchase of Whirlpool, Maytag, and Kitchen Aid products.

20% off one-time furniture or bedding purchase.

25% off one-time accessory purchase.

Discounts can only be applied to regularly price items. (Excludes sale prices, contract pricing, and discontinued items) Only allowed on Discounts cannot be used in combination with special finance offers.  (Finance charges will be added to total ticket.)

Offer expires 5/31/2010. (Tickets must be written no later than 5/31/2010.)

2) Texas Carpet Outlet

10% off any service: carpet, flooring, or counter tops.

3) Harris Nursery

20% off any tree, shrub, flower, or plant purchase at one visit.

4) Perm-O-Green

$10 off first lawn treatment.

*One must use Ashton Gustafson as a Buyer's Agent and Must Close By December 1, 2009 to qualify

the $8,000 tax credit

This is from Jeff McClatchy @ Fidelity Bank - for more information - contact Jeff directly @ 940.763.2100

INDUSTRY UPDATE

New Regulation Z Rules Effective July 30, 20O9

The Federal Reserve has approved new rules concerning Regulation Z / Truth in Lending (TIL)

disclosures which go into effect on July 30, 2009 for ALL loan applications. The rules apply to

all mortgage lenders including brokers, bankers, wholesalers, federal or state banks and

credit unions.

In summary:

• Prior to issuance of the three-day disclosures, ONLY a credit report fee can be collected up

front. No other fees may be collected until AFTER the initial disclosures are issued.

• A new statement will be added to both the initial and final disclosure that states, "You are

not required to complete this agreement merely because you have received these disclosures or

signed a loan application."

• There is a MANDATORY seven business day (all days except Sunday and holidays)

waiting period from the time the initial TIL is issued to the time of closing. For example,

if the loan application is taken on Monday and the disclosures aren't issued to the borrower until

Wednesday, the loan cannot close until the following Thursday. The option to transfer a loan from

another lender one day and close it the next day has been prohibited.

• If the final TIL changes from the initial TIL (primarily meaning the APR changes by 1/8% up or

down), there is a MANDATORY three business day waiting period from the time the new

TIL is received by the borrower to when the loan can close. If the new TIL is mailed, then it

is a MANDATORY six business day waiting period.

• The new rules apply to owner-occupied purchases, refinances, second homes and

home equity loans. They do not apply to non-owner-occupied properties or home equity lines

of credit (HELOC).

Lenders must allow adequate time for locks; and ensure fees are accurate at the beginning of the

loan application; and items which impact the APR (i.e., fees, loan amount, interest rates) do not

change during the loan transaction. Additionally, short close contracts (less than seven days)

cannot be written.

Fines and penalties for violating the regulations include:

• Civil liability (lawsuits)

• Criminal liability ($5,000 and up to one year in jail)

• Administration actions (cease and desist orders)

• Possible forgiveness of the debt to the borrower

To review the regulations, visit:

www.federalreserve.gov/newsevents/press/bcreg/20090508a.htm

It simply cannot get better than this! You name it, and it has been updated. Home updates include: gourmet kitchen with maple cabinets and granite counter tops, refurbished original hardwood floors, updated bathrooms, blown-in insulation, new HVAC - and the list goes on.

This home has 2 living areas and an upstairs bonus room.

Located on a corner lot, this home is just minutes from anywhere you need to be in Wichita Falls. There is a side carport with a new door opening system, and a 2 car carport in the backyard with rear access. The workshop in the back has power run to it and a floor drain system.

This is the perfect first time home for anyone in the market.

Act now, and this home can be yours. And if you're a first time home buyer, you would receive the $8,000 tax credit, but you have to close by December 1, 2009.

Call or email Ashton today for your private showing - 940.224.0881 or ashton@bishoprealtor.scom

All votes count - cast yours for Ashton today.

http://www.realtor.org/RMOsales_and_marketing/Articles/2009/30Under30_Vote

Many people cannot fathom buying a home in today's economy.
    But, some in the home buying business say now is the perfect time to do so... and it's all thanks to a tax credit the federal government is offering to those who have not owned a principal home in the past three years.
 
Wayne Pharries / V.P. Mortgage Lending, First National Bank
"This is called a refundable tax credit .... in that... whether you owe taxes or not... you're going to get this money.  So, if you didn't owe any taxes at all, you would get the full amount that you qualify for... up to $8,000."
   
    This tax credit differs from a $7,5000 tax credit offered last year, which actually had to be repaid to the government over a 15 year period.

Mechell Dixon / mechell@kfdx.com:
"There is at least one exception to the no pay back rule. If you sell your house within threes of buying it and taking advantage of that tax credit... then.. the government will expect you to repay them $8,000."

    But, one local realtor says... remaining in a house for three years is well worth the free money you could receive.
    And, he can't wait for word to spread about the new tax law.

Ashton Gustafson / The Bishop Realtor Group:
"Haven't seen it yet catch on.  I think it will. I think once people realize, essentially, what this tax credit is, they'll understand at that time it's a great opportunity."

    There is an income limit on the tax rule.
    But, provided you qualify and you have the money for a down payment... you can take advantage of this deal that the government believes is one of the first steps to strengthening the economy.

Short Sales offer the homeowner many more benefits than going through a Foreclosure.  In the case of a short sale, the benefits to the homeowner are:

• Only late payments on the mortgage show on a credit report and after the sale of the home, the mortgage will be reported as paid or negotiated.  This could lower a homeowner’s credit score by as little as 50 points if all other payments have been made.  The affect of a short sale can be as brief as 12 to 18 months.
• A Short Sale is not reported on a credit history.  There is no specific reporting item for ‘short sale.’  The loan is typically reported as ‘paid in full, settled.’ 
• A Short Sale on its own does not challenge most security clearances whereas a foreclosure does.
• A Short Sale is not reported on a credit report and is therefore does not present a challenge to employment.
• In some successful short sales it is possible to convince the lender to give up the right to pursue a deficiency judgment against the homeowner, (i.e., payment of the shortfall or the difference between what was owed and what the bank received.)
• Under the Mortgage Forgiveness Debt Relief Act of 2007, if a deficiency is forgiven or cancelled, the home is a principal residence, and it is worth less than $2 million, the tax on the deficiency will be forgiven.  This benefit applies to homes that are the subject of a Short Sale and a Foreclosure.

Click the links below for more details about The Mortgage Forgiveness Debt Relief Act of 2007

• A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed mortgage after only 2 yrs.

• An Investor who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed investment mortgage after only 2 years.

If you feel you are near foreclosure, please contact me, Ashton Gustafson of The Bishop Group.  I can help you decide what your options are and explain what is in your best interest.

Having good credit and a steady job just does not seem to be good enough in today’s credit world when it comes to getting your home loan approved.  You need to make an impression.  Below are some great tips I would like to share with you. 

Today’s lenders are a picky bunch when it comes to the loan approval.  Even well-qualified borrowers are expected to jump through some pretty high hoops to qualify for financing.

Have no fear. The tips below and suggestions can help you make the best possible impression on the lender of your choice.

Just as job hunters may wonder what top employers want to see on a resume, prospective borrowers may be curious about what lenders look for on a loan application.

The four C's  - The answer may be summed up with a mnemonic called "The four C's,"

•    Capacity, which refers to the adequacy of the borrower's income to cover the interest and principal due on the loan, plus property taxes and homeowners insurance.
•    Character, which refers to the borrower's track record of paying debts, as evidenced by his or her credit history and credit score.
•    Capital, which refers to the borrower's down payment (or equity) as a percentage of the current value of the home.
•    Collateral, which refers to the safety and soundness of the home and the value of the home as determined by an appraisal relative to the agreed-upon purchase price.

Today’s mortgage broker might use a quadrant with "income," "credit," "assets" and "property" in the four corners, but his point is the same as that of the four C's:  What lenders like to see is strength and stability in all four areas.

Maybe your credit score has some dings or you need a stated-income loan.  Borrowers who are qualified but whose down payment will be less than 20% of the purchase price of the home must withstand a second level of scrutiny. That's because mortgage insurers also have to approve such loans, and they have "completely different qualification ratios”. Borrowers in this situation should discuss their options with a loan officer who is familiar with lenders' and insurers' guidelines.

Have paperwork in order

Lenders rely not on the borrower's say-so but on a pile of paperwork to verify and document the borrower's financial position. At a minimum, most borrowers are required to submit the following:

•    One month of paycheck stubs.
•    Two years of W-2 forms.
•    Three months of bank account statements.

Additional paperwork also may be required:

•    If you're self-employed or earn more than 25% of your income from commissions or bonuses, you'll need to hand over two years of income tax returns.
•    If you're divorced, the lender will want a copy of your settlement to ascertain how much alimony or child support you're obligated to pay or are entitled to receive and the duration of those payments.
•    If you've filed for bankruptcy protection within the past seven years, you'll need to show your bankruptcy papers.
•    If you've deferred repayment of student loans, you should provide your deferral agreement as well.
"If (borrowers) have student loans that are going to be deferred for at least 12 months, that may help them qualify, so they would want to bring the account numbers for those loans.  Student loans are counted as debt, but deferral of repayment may strengthen the borrower's application.

How much home can you really afford? The first step in buying a home is to have a budget and figure out how much you can actually afford. Your agent or lender can help you with this in a couple of ways:

•  Pre-qualifying process This process will give you a general "estimate" of what you will be able to afford.

• Pre-approval process This process will allow your lender to review your finances in more detail in order to determine the amount of money they agree to loan you for your home purchase.

Your lender will review your finances and focus on a few main areas such as:

• Gross monthly income
• Credit history
• Amount of outstanding debts
• Source and amount of money available for down payment and closing costs
• Interest rates, etc.

All these things put together will help your lender determine two important qualifying ratios.

1. Debt-to-Income Ratio Generally the amount of debt you pay each month should not exceed 36 percent of your gross monthly income
2. Housing Expense Ratio Most lenders will not approve your loan if the mortgage payment exceeds 28 to 33 percent of your gross monthly income

These are the first steps in determining how much you can afford when purchasing a new home. For more mortgage and finance information feel free to visit Texoma Home Source

Homeowners facing possible foreclosure are especially vulnerable to the various schemes employed by today’s con artists. Don’t fall prey to their promises. The best first step is to call your lender at once if you think you may miss your mortgage payment.

Here are some scams to watch out for:

"Sign the deed over to me, and I’ll take care of the rest. It’s all about acquiring control of your property in exchange for various promises. The "investor" may promise to make up back payments owed to your lender or to sell your home to pay back the mortgage. He or she may ask you to move out immediately, or may offer you a rental agreement so you can continue living in the home, or may even offer cash for your equity in the home.

Unfortunately, signing over your home’s deed to a third party does not clear your obligation for the mortgage. Once the deed is signed over, the unscrupulous "investor" can start making money with the property--raise your rent payments to unaffordable levels, evict you, rent the property to someone else or set up a rent-to-own agreement that nets the "investor" a tidy amount of deposit money. Meanwhile, the con artist may not make your back payments or may skip town with whatever money was made from the property. You still owe the mortgage and your lender continues the foreclosure process against you.

"Just file for bankruptcy." Filing for bankruptcy typically only postpones the foreclosure rather than stopping it. However, bankruptcy could give you time to reorganize your finances and possibly save your home. If you decide to go this route, make sure you work with a reputable bankruptcy attorney and you understand the process and the likely outcomes, including the impact on your credit.

"We’ll negotiate with your lender to stop foreclosure. Simply pay our one-time fee." You might pay $500, $1,000 or more for a bogus "service" that may not stop foreclosure or that you could have accomplished yourself--for free--with calls to your lender. There are, however, legitimate organizations out there that really can help: contact the US Department of Housing and Urban Development (HUD) at (800) 569-4287 for a list of HUD-approved counseling agencies or search online at www.HUD.gov/offices/hsg/sfh/hcc/hcs.cfm .

We are glad to release www.TexomaListings.com

If you are looking for a second home or a getaway place to retreat on the weekends, see www.TexomaListings.com . Here you can enter exactly what you are looking for and it will be sent to you each time a new home comes on the market within your criteria.

The North Texas ans Wichita Falls areas are a very affordable place to live and purchase a home. If you would like an information packet sent to you, please email me @ ashton@bishoprealtors.com