Michigan First Time Home Buyer: An Overall Guide

Michigan First Time Home Buyer: An Overall Guide

 For a first time buyer, there is so much to worry about and so many levels of details to address, that I just want to provide a good general guide to how to start the process. You can refer to my other blogs for more detail, but I think this is a great overview.

 

Purchasing anything, will cost you money. A home is the biggest purchase you will ever make, but most people expect to spend less than when getting an apartment. Any decent complex will want first, last, and possibly a security deposit. That’s at the very least $1000. Have this much at the very least before you consider buying a home, otherwise you really are setting yourself up for failure.

 

Now, Before you do anything else, find a loan officer.  Before you contact a Realtor, before you look at homes, you have to qualify. In today’s market there are so many intricacies to qualifying that the first thing you need is to get approved. Approved, not pre-approved like so many tell you. Finding a good loan officer is finding someone that doesn’t talk about pre-approval. Find one that runs Underwriting and approves you upfront. And do I really have to warn you about using 800 numbers in California or New York to get a loan? FIND HELP AT LEAST FROM THE SAME STATE!

 

Ok, now you can get excited and look for homes.  Get a good Realtor, find what you want, and don’t be afraid to pull the trigger. At the same time, don’t over look the structural integrity of the home, just remember that you will ALWAYS have to paint a room or two to make it yours. Get a home inspection and listen.

 

Getting your loan will take time. Depending on your situation it can be anywhere from 20-40 days. Anything longer is too much, and you should start to ask serious questions around the 35^th day.

 

Don’t be afraid to ask questions. Simple but rarely used. Just ask any question at any time and if your loan officer or realtor seem to never be available, ditch them. Ditch Them! Don’t feel imposed upon or that you aren’t being taken care of, a lot of sales people are taught to show you how complex everything is to sell you on themselves. Really their job, THEIR RESPONSIBILITY, is to simplify things for you.

 

Closing will never be simple. Hopefully you have a good loan officer that will explain this to you upfront, but be patient and let those doing the work have time to do the work. If it was simple, you could do it yourself.

 

The final word: work hard to find people you can have complete face to face confidence in and have confidence in them. This is the most important part of anything you do. Assemble a good team of professionals that can put everything into perspective for you and will have YOUR best interests at heart.

 

For more information Call Today or visit our website:

810-953-4266 or www.iconmortgagelending.com

First Time Home Buyer: Conforming at a glance

First Time Home Buyer: Conforming at a glance

 

The following was a general overview of the Conforming loan programs such as those offered by Fannie Mae or Freddie Mac and a guide to figure out if this is the loan program for you.

 

Availability: Available in all areas.

 

Type of Homes they finance: Single Family Properties and Multi-Family Properties will qualify. Site Condos are viewed the same as Attached Condominium Properties and are acceptable if they are approved condominium projects. You can search approved projects here: ******. Manufactured properties, Modular, Stick-Built, or BOCA-code properties are acceptable in some circumstances but not likely to be accepted. Working Farms, unique properties, and dome-homes will not qualify.

 

Down Payment Required: 10% or greater in conjunction with Private Mortgage Insurance. 20% to meet conforming loan standards. In general, funds for down payment can be a gift from family.

 

Private Mortgage Insurance: Emphasis on the “Private” since it is obtained through a private asset insurance company such as MGIC, PMI, RMIC, or RADIAN. Generally 1% is billed monthly, though some discounts can apply. No PMI is required with 20% down.

 

Interest Rates: Vary greatly between lenders. Careful shopping will be required in obtaining the best interest rates. With a 20% down payment, rates are generally lower than FHA or RD financing.

 

Maximum Loan Amount: $417,000.

 

Income Limits: No income limits apply.

 

Credit Requirement: Varies from lender to lender. In general, a 720 FICO and 3 credit references at least 24 months old with no late payments is required, though a lower FICO is required with a down payment of 20% or greater. 36 months from Bankruptcy or Foreclosure with 3 credit references established after the discretion.

 

Reserves: Varies between lenders, but in general, 2 months or greater of mortgage payments are required. Can come from retirement savings, checking or savings account.

 

Repair Escrow: Acceptable with certain programs, but good luck finding a lender that accepts them.

 

General Overview: For borrowers with great credit history and available down payment sources. Interest Rates will blow away government financing if you have the means to qualify.

First Time Home Buyer: FHA at a glance

First Time Home Buyer: FHA at a glance

 

The following was a general overview of the FHA loan program and a guide to figure out if this is the loan program for you.

 

Availability: Available in all areas.

 

Type of Homes they finance: Most property types. Single Family Properties and Multi-Family Properties will qualify. Site Condos are viewed the same as Attached Condominium Properties and are acceptable if they are approved condominium projects. You can search approved projects here: ******. Manufactured properties are acceptable if they meet individual lender requirements. Modular, Stick-Built, or BOCA-code properties are acceptable. Working Farms, unique properties, and dome-homes will not qualify.

 

Down Payment Required: 3.5%. Can be a gift from family, friend, or employer. Down payment assistance is only available from grant programs.

 

Mortgage Insurance: 1.75% financed into your loan and and .55% is billed monthly.

 

Interest Rates: Vary greatly because of the great variance between lenders offering FHA financing and the Yields paid to those making the loan for you. Careful shopping will be required in obtaining the best interest rates.

 

Maximum Loan Amount: Varies by county. Most counties in Michigan fall at $278,000 or lower.

 

Income Limits: No income limits apply.

 

Credit Requirement: Varies from lender to lender. In general, a 620 FICO and 2 credit references at least 12 months old with no late payments is required. 36 months from Bankruptcy or Foreclosure.

 

Reserves: Varies between lenders, but in general, 2 months of mortgage payments are required. Can come from retirement savings, checking or savings account, or as a gift.

 

Repair Escrow: Available on HUD-owned properties with no contingency plan.

 

General Overview: Available to all borrowers meeting credit standards, emphasis on credit requirements in regards to payment history within 12 months, credit discretions explainable to underwriter are acceptable, easy qualifying with acceptable credit references.

First Time Home Buyer: Rural Development at a glance

First Time Home Buyer: Rural Development at a glance

The following was a general overview of the Rural Development loan program and a guide to figure out if this is the loan program for you.

Availability: Available outside of high-density urban areas. For a more detailed area of qualification contact your lender or view our website: www.iconmortgagelending.com

Type of Homes they finance: Most property types. Single Family Properties, Site Condos, Multi-Family Properties, Modular, Stick-Built, BOCA-Code, large parcels, and some unique properties will qualify. Attached Condominium Properties are acceptable if they are approved condominium projects, you can contact your lender to check on approved condominiums. Manufactured properties will NOT qualify unless they are newly built and permanently attached to a property. *Properties with in-ground pools will come under added scrutiny.

Down Payment Required: No down payment is required. Any down payment can be a gift from family, friend, or employer.

Mortgage Insurance: 2.04% financed into your loan, no monthly mortgage insurance is required.

Interest Rates: Little variance between lenders, though some shopping may still be required.

Maximum Loan Amount: No maximum loan amount.

Income Limits: Income limits vary by County. You can view income limits for Michigan Counties here: *********.

Credit Requirement: 620 FICO with no minimum credit requirements, though this may vary by lender. 12 months from Bankruptcy or Foreclosure.

Reserves: No reserves required.

Repair Escrow: Available on all properties with contingency plan.

General Overview: For moderate income borrowers, easy qualifying with 620 FICO score, $0 down, Repairs can be included.

First Time Home Buyer Tax Credit as Down Payment or: Dirty Deeds Done Dirt Cheap

First Time Home Buyer Tax Credit as Down Payment or: Dirty Deeds Done Dirt Cheap

I think this is an important discussion to have so I am going to post this blog a few days in a row to make sure it gets out. There is a lot of confusion concerning the First Time Home Buyer Tax Credit especially now that FHA has approved the funds to be used towards down payment and I am looking to simplify things for you like I have been trying to do with all of my blogs.

This one, I feel is of great importance because I hate to be the one to you know: burst the bubble, but as I hear folks industry wide rejoice at the possibilities of borrowers being able to use their tax credit as a down payment for their new home I would like at least make a few points to the contrary.

1. Premature Jubilation: Everyone right now is scrambling to get the info to you that you can now use your tax credit as a down payment for an FHA loan. The thing they don’t realize is that until lenders roll out a program which allows you to use your tax credit in such a way, it makes NO difference whatsoever. So before you get yourself all worked up, we first have to actually have it available for you.

This is most easily show with this example- in July of last year FHA approved funding for the Hope fro Homeowner program in which they were going to refinance people that were having trouble making their mortgage payments. This was the program that was supposed to stabilize our housing market. Instead, no Lender ever even touched the program, and it was ultimately just discontinued in January 2009.

2. There’s a Snake in that Grass. Please also understand that they are not just letting you use your money for your down payment. What they want to do is give you a loan that you can in turn pay back. Now, if that suits you, then fine. But understand that this is not the same as the free stimulus that it is meant to be. Ultimately you allowing someone to give you a loan on that money it is going to benefit you, not them. Just understand that it is NOT in your best interest to take free money and turn it into a loan. DON’T LET THE VULTURES GET TO YOUR MONEY!!!

So, I shouldn’t take it? I am not saying that it can’t help anyone…but use your head, weigh your options, ask more than one person, and always read the fine print. If you don not absolutely NEED to use the money as a down payment…DON’T.

You may not even be thinking about it now, but there are so many good ways to use this money, please do not get ripped off before you even have the chance! Here are just a few examples of what to do:

Pay down the principle balance of your mortgage. In fact, if you get $7500 and put it directly on your principle balance of a $100,000 mortgage, that one payment will cut 4 years and $60,000 in interest payments right off of your mortgage!

Pay down high interest credit cards. Pay that high credit card loan off, use the boost in credit score to get a better credit card at a lower interest rate, let the paid off card sit there open with no balance and enjoy a great credit score for quite some time and save thousand on future mortgages, credit cards, car insurance…you name it.

Invest it. Ok, so maybe the stock market isn’t so hot now, but if you can find something safe that it sure to yield, it is a win-win for you my friend. Heck, even a high yielding savings account or a 2-year CD will make you great money.

Take advantage now, because the tax credit goes away if you close on your new home after December 31st, 2009. Happy Home Hunting to you all!

For more in-depth help, go to our website:
www.iconmortgagelending.com

Michigan Real Estate Purchase: Lending Update

So, regardless all of the jibber-jabber out of Washington lending is continuing to tighten. I figured I would write just a general overview of some of the significant changes or non-changes here in my blog in case any of these issues may affect you.

First Time Home Buyers: Most of the news for you is good. So much is aimed at finding you and inspiring you to help get the economy moving again, that your business is still in demand. The current change is that banks are looking for a little more investment on your part to ensure that they are making a good investment with you. This doesn’t necessarily mean a down payment, but do expect to be accountable for past credit discretions and to able to show paperwork on where you are getting the money to pay for your appraisal, down payment, or other requirements. This can still be a gift from family, but expect to show proof of where you are getting it. More emphasis if being put on the 620 FICO phenomenon on a daily basis. Those borrowers over 620 will succeed on those under will continue to face more and more hardships as time passes. Open new credit…first and foremost. Always continue to strive to a higher FICO by managing current credit properly and you will be fine.

Buying a Home when you already own one: This is where some of the more significant changes have been made over the last year. If you want to move into a new home as your Primary Residence and already own a home, you will come into a lot of restriction. Even if you have a good reason- such as job transfer, more space, or just want better home at a better price. The banks see you as a huge risk of buying a new home and letting the other home go into foreclosure…and rightfully so. This doesn’t mean that it can’t be done; you will just need to meet the extra requirements. You will need to be able to afford to make the payment on both houses and the rest of your bills within the normal guidelines of 41% of your gross income. You will also need to have 6-12 months of both payments in savings (this can include 401k accounts too, so if you have one that hasn’t been raided by AIG or Countrywide you are in a decent position to obtain financing).

Buying and Investment Property: Ah the Catch 22. Affordable prices driving investors to the market and tightening credit restriction driving them away. Well, let’s face it, if you do not have some cash to work with you are not in a position to invest anyways. The good news is that prices have gotten so low that putting 25% down on a $30,000 property only means about $10,000 out of pocket including closing costs. If you have taken care of your credit over the years you can borrow most of that from sources outside of the mortgage and still leverage the majority of your investment as long as you can show your invest as liquid for two months prior to the purchase- meaning you can get a loan but have to deposit the cash for a few weeks before you find your property. I understand that Michigan is a down economy but I can’t express to you how much I hate seeing Californians being the ones gobbling up our properties when buying the home next door is so much better of an investment for our own neighbors that have the means. Maybe it’s time to weigh how much you are losing in your 401k or stock investments against how much risk you are willing to take…think about it people, you are losing cash hand over fist where it is now.

Buying a Second Home: Well, chances are if you are buying a Vacation Home, you have the resources to do so. You will certainly find that it takes a little extra down payment now, but any changes will not be significant enough to dissuade you.

Overall: Things are continuing to tighten, and they will follow this trend for a while. Don’t believe everything you hear on CNN, it will not serve you well. Most serious buyers will not feel the crunch anymore than has been happening over the last two years, but those that are getting into the market with timid steps will not succeed. You need to have money down, proof of your benefactors, and as always a steady income. Borrowers that do have the means to repay will continue to qualify.

For more in-depth information call or visit our website today
810-953-4266 or www.iconmortgagelending.com

(First Time) Home Buyer’s Frequently Asked Questions

I will be adding to this list as I go along, but I wanted to start a nice comprehensive FAQ for homebuyers. I put “first time” in parenthesis because really this can apply to anyone buying a home, but this will apply mainly to the questions I get from first time homebuyers.

Q: Why buy instead of rent?
A: Well, pride of ownership and having something that is yours to do with what you want. A home is also a long-term investment for your future. Don’t let all of the exploding market talk scare you. Real Estate prices go up and down, but just like investing in stocks, you buy low and sell high based on when you enter the market. If you put yourself in a position where you have to sell within a very short period of time you had better make a sound investment or you will fail as many are now failing because they relied on an implied return without realizing preparing for a long-term goal. In addition to the equity investment, a home is also a valuable tax incentive. You can deduct your mortgage costs and property tax costs from your income taxes that you file each year whereas your rent is simply paid and gone forever rather than reinvested.

Q: What documents will I need when applying for a mortgage?
A: You can follow our guidelines laid out here: Documents for any documents needed to apply for a loan. A quick synopsis would be: 2 years w2s, 1 month of pay stubs, 2 months of banks statements, 401k/Retirement savings statements, driver’s license, and social security card.

Q: What is my interest rate going to be?
A: A loan officer should never quote you an interest rate before they take all of your pertinent information. Beware of loan officers that do this, because they have no reason to keep their promise and all the reasons in the world to change it before closing. For more info read this blog: Deciphering Interest Rates.
Once you have given all of your information, and a loan program can be chosen, you should then demand some type of rate lock agreement. Even if it is in your best interest to float at the time of application, it is something that should be discussed with your loan officer as to when you will be locked in.

Q: What are the closing costs?
A: Any loan officer worth their salt and offering the truth to you, will offer a Good Faith Estimate of all closing costs. In fact they are legally required to, but the oversight of such practices is pretty light so many just don’t even bother. For more info on what the GFE should look like, check out this blog: Closing Costs

Q: Once I am pre-approved will something go wrong?
A: There will always be the possibility of something going wrong after a pre-approval. If you are smart you will ask to be approved through AU before you actually make an offer on a property. AU or Automated Underwriting will render a pretty solid decision on your loan, and will give you added security but most loan officers will not offer this service to you because of the cost to them. If you have a less than perfect situation, it will be worth your time to find a loan officer that will offer you an AU decision before you get too far into the process only to be let down. AU is not the end all though because it will not be able to make any decisions about the property such as the title situation, the value of the home, or the validity of the collateral at all; but AU will ask all of the questions needed to close your loan in regards to your credit and ability to qualify for the loan.

Q: What is the best loan program for me?
A: Lots of options still exist to this day even though there has been a major credit crunch. The three main options that every loan officer should discuss with you regardless of any other factors are Conforming- though they require more down payment, it may be worth it to get the drastically smaller interest rates; FHA which has lower down payment requirements and greater qualification flexibility and is available in all areas; and RD (Rural Development) which is not available everywhere but requires even less down payment than FHA and has no monthly mortgage insurance. If a loan officer does not offer you all three of these options and describes the differences in detail, they are not the loan officer for you because they are either unaware or uneducated in all loan types available, or are simply steering you away from a loan that they can not offer. ALWAYS beware of a loan officer that says something like, “Oh that isn’t even worth talking about.” That is just a way for them to deflect a question about a loan they are uneducated about. If they say that, THEY aren’t even worth talking about as an option for your financing. You can read more about each loan program here in my blog.

Q: My uncle told me that he got 4%, why am I hearing something different?
A: People love to give advice and share opinions we all know this. Generally when people talk about something that they are not trained in providing, they are only offering opinion and not fact. Once you have found your mortgage professional, it is important to listen carefully to what they tell you and look for some of the warning signs I point out in my various blogs. But once you feel comfortable with that person, you should be aware that many many people will offer random opinions based on their own experiences that may of may not have anything relevant to your situation. Bring these up to your loan officer but I do caution you against taking too seriously what someone that does not work in the business says about your mortgage. Take in into consideration, but listen to professionals that you choose to serve you for the answers. If the answers they give make you feel uncomfortable, then you can make your choice accordingly.

Q: What about this tax credit I heard about?
A: Well there are many situations arising that are less than clear in regards to the tax credit. For the simple questions though, you can check out this website for the answers: www.federalhousingtaxcredit.com

Q: How long does this take?
A: The simple answer is 30 days from the time a signed purchase agreement is delivered to your loan officer. Any longer than that and you are probably doing something wrong, however there are certain situations that will take longer. Discuss this with your loan officer before you apply and if things are taking longer without a decent explanation, it may be time to switch. For a more detailed answer, read this blog: Time Table

Q: What is closing a loan like?
A: Whew, unlike anything you will ever do. Basically it is 30 minutes of signing your name. You will be seated with your loan officer, real estate agent, and a closing agent and going through many important documents. It is a good idea to go through and read each document, and consult your loan officer and real estate agent for any questions you may have.

Q: What if I have trouble paying my mortgage payment?
A: I always tell my clients to contact me directly if this happens so that we may point them to the proper channels, however you may not get that answer from everyone. If not, there is always help available. Some important resources can be found in this blog of mine: Help for Homeowners

For more information you can call or visit our website:

810-953-4266 or www.iconmortgagelending.com

First Time Home Buyer: How to Demand Transparency from your Loan Officer

There are so many ways for a loan officer to fool you and I have heard them all in my time in the business. Now I bring this knowledge to you in how to demand that your loan officer never fools you. I will also cite all of the documents that your loan officer is legally required to show you yet rarely will. I will make you as close to impenetrable as possible.

Interest Rate: Ah the interest rate. As a consumer it is always the first thing on your mind, and always the first tool you use to shop for the best deal possible on a mortgage. Of course, us in the “know” realize that there the interest rate alone rarely dictates a good deal on a mortgage. So how do you decode what your interest rate will be and if it is in fact a good value when a loan officer is so well equipped to talk his or her way around this subject? Well the value part will be covered under the APR heading below, but first let’s talk about how to know what your interest rate is and what it will be at the time you close.

The Rate Lock Agreement: The rate lock agreement sounds like a form that you would have to sign and consent to. In fact most companies will have you sign a rate lock agreement, but this does not have to be a form according to Michigan law (MCMPA). In fact it can also be a verbal agreement between you and your lender. If a loan officer promises you a certain interest rate, it is literally against the law to change it. You can in fact, sue your loan officer if they made a verbal promise to deliver a certain interest rate and then changed it unless you yourself have provided misinformation or request changes to your loan program. Most people don’t realize this. Just always require that your loan officer is honest with you, even if that means they tell you that they don’t know what your rate will be. In most instances, the most honest loan officer will give you a fair range of current rates

Key phrases a loan officer will use in deceiving you about your interest rate:

Well we can’t lock your rate because they change so often. (They change often but a loan officer should still be able to offer you a lock based on when you qualify)
I can get you that rate, for sure, but we need to see if you qualify first (a loan officer should never say for fact they can get you any rate until they know you qualify and if they do they are breaking the law and breaking your trust).
Oh yeah, like 6% (before they even know your name).
And ALWAYS be aware of any advertisements that come with an interest rate printed on them, no matter what the form they use. Any advertisement with an interest rate contains so many opportunities for a loan officer to lie to you that it is NEVER worth it in the end.

APR or Annual Percentage Rate: This is one of the most confusing numbers in all of mortgage lending and is even confusing for the very person that is meant to teach you about it if they are not properly trained. The APR is an expression of the “cost of your credit” as a percentage. In other words it takes in account all of the “cost of your credit” or fees you will pay in connection with getting a loan and breaks it down into a percentage. A lender is legally required to provide you with this figure in accordance to the Truth-in-Lending Act (TILA) within three days of applying for a loan. They come on a form referred to as the T.I.L. that features other important information as well, but the APR is the most prevalent feature.

Key phrases a loan officer will use if they are trying to confuse you when explaining this to you:

Nobody even really understands how this APR thingy works.
It’s an awful government form, you know government, everything they do is stupid.
Don’t worry about that APR it is not your interest rate and doesn’t affect your loan.

In fact the APR is a useful tool in comparing one loan to another. It is certainly not the end all to loan shopping, but it is useful because it breaks down all of the charges that you do not carry from one lender to the next. So things like a credit report fee or an appraisal fee are not used in the calculation because they will be a part of your loan costs no matter what. The APR does use fees like origination charges, broker fees, and. The important things to remember her are: make sure your loan officer offers you a “TIL”, make sure they explain the APR the way I explained it, and make sure they show you the charges that figure it.

The Broker Fee: This is important whether you are being charged one or not. The important thing to remember is that the reason a Mortgage Broker exists in the first place is that a broker does not need the mortgage lender to pay them to sit at a desk all day even when they are not originating loans. The broker does, however, have to pay to advertise or maintain an office of their own in order to get to you in the first place. So the ultimate end game is to compare if the broker fee is cheaper than what the bank will charge you. Again this is not the only factor to consider but it is useful because if your concern is upfront fees as opposed to monthly payment, you will want to compare the broker fee as opposed to the interest rate that your payment is based on. Any broker is required to explain this to you as mandated by the Michigan Consumer Mortgage Protection Act (MCMPA) via the Borrower’s Bill of Rights. You have the right to know what your loan officer is making as a result of originating your loan the same way that your bank is required to give you this document and explain this to you as well. The problems mostly arise by the fact that a bank loan officer is not required to explain exactly how much they are making by originating your loan because they are considered an hourly employee of the bank. Obviously a bank loan officer will always be able to present their origination fee as cheaper than a broker. This is where the APR can be compared to your interest rate and used a tool to distinct which is a better value.

Whether or not you are qualified. This is the tough one to decipher. By law any lender is required to give you a credit decision within 30 days. Obviously, the process gets a bit muddier once the term pre-approval comes into play and even more so when you have a less than perfect credit or employment situation that makes qualifying difficult. The important thing to remember is that if someone is telling you that you qualify before they have seen a credit score, employment information, asset information, or heard your entire story- they are lying. It is impossible for someone to tell you what you qualify for without having taken a full application so be leery of anyone that does.

The Good Faith Estimate (GFE): This is a breakdown of all the fees involved in acquiring your loan. If you look carefully, you will see on the GFE which fees are used in calculating your APR. This will further your shopping power by realizing what will be charged by anyone and what will only be charged by a bank or what will only be charged by a broker. The big thing I feel is to be aware of things that are conveniently left off of a GFE but will be added later. Specifically those charges that are used to calculate your APR that some loan officers like to leave off of a GFE, or grossly under estimate in order to make the bottom line look better. These include Tax Escrows, Pro-Rated taxes(only on purchases), title insurance, title closing fee, days of interest, and processing fees. These will all always be charged regardless of lender and will always be able to be properly estimated (with reason) at time of application. So if you are comparing GFEs and you notice a large difference between these charges or that one has been omitted, it should immediately send up a red flag that one of your loan officers is not being honest with you.

Basic Legal Forms: There are a few basic forms that you are required by law to receive within 3 days of applying for a mortgage, so be leery of anyone that does not provide them. Good Faith Estimate, Truth-in-Lending, Borrower’s Bill of Rights, Servicing Disclosure, Consumer Caution Disclosure, and the Closing Costs booklet.

If you follow these guidelines and are not afraid to walk away from a loan officer that does not comply with these guidelines, you will make the loan process much simpler for you.

For more information you can call or check out our website:
810-953-4266 or www.iconmortgagelending.com

Rural Development Loans Still Readily Available.

Hello all,

I, and pretty much all of our people at Icon have had many Realtors calling us over the past few days concerning the health of Rural Development loans. Apparently, some lenders are having problems dealing with the lapse in funding at the USDA.

Please be Aware that we are running business as usual with Rural Development loans.

Our main two RD channels are committed to closing and funding loans while new funds are in process of being appropriated for the USDA. There is no back up, there is no hold up, there is no closing issue. If you are having these problems you can always just call me over at Icon 810-953-4266 and I will take a look at whatever you need help with.

Thanks,

Matt

Michigan First Time Home Buyer: An Overall Guide

For a first time buyer, there is so much to worry about and so many levels of details to address, that I just want to provide a good general guide to how to start the process. You can refer to my other blogs for more detail, but I think this is a great overview.

Purchasing anything, will cost you money. A home is the biggest purchase you will ever make, but most people expect to spend less than when getting an apartment. Any decent complex will want first, last, and possibly a security deposit. That’s at the very least $1000. Have this much before you consider buying a home.

Now, Before you do anything else, find a loan officer. Before you contact a Realtor, before you look at homes, you have to qualify. In today’s market there are so many intricacies to qualifying that the first thing you need is to get approved. Approved, not pre-approved like so many tell you. Finding a good loan officer is finding someone that doesn’t talk about pre-approval. Find one that runs Underwriting and approves you upfront. And do I really have to warn you about using 800 numbers in California or New York to get a loan? FIND HELP AT LEAST FROM THE SAME STATE!

Ok, now you can get excited and look for homes. Get a good Realtor, find what you want, and don’t be afraid to pull the trigger. At the same time, don’t over look the structural integrity of the home, just remember that you will ALWAYS have to paint a room or two to make it yours. Get a home inspection and listen.

Getting your loan will take time. Depending on your situation it can be anywhere from 20-40 days. Anything longer is too much, and you should start to ask serious questions around the 35th day.

Don’t be afraid to ask questions. Simple but rarely used. Just ask any question at any time and if your loan officer or realtor seems to never be available, ditch them. Ditch Them! Don’t feel imposed upon or that you aren’t being taken care of, a lot of sales people are taught to show you how complex everything is to sell you on themselves. Really their job, THEIR RESPONSIBILITY, is to simplify things for you.

Closing will never be simple. Hopefully you have a good loan officer that will explain this to you upfront, but be patient and let those doing the work have time to do the work. If it was simple, you could do it yourself.

The final word: work hard to find people you can have complete face to face confidence in and have confidence in them. This is the most important part of anything you do. Assemble a good team of professionals that can put everything into perspective for you and will have YOUR best interests at heart.

For more information Call Today or visit our website:
810-953-4266 or www.iconmortgagelending.com