Enrique Herbella's Discussions

With prices declining and supply ballooning, now is a great time to buy a home. However, lenders are scrutinizing borrowers much more carefully these days, and even with good credit, gainful employment and cash in the bank for a down payment, applying for a mortgage is more challenging today than it was just a few short months ago. Here are a few ways to position yourself for approval, and for a great mortgage rate to boot!Get a Credit Makeover.Some sins, such as unpaid tax bills, late payments or ?past dues? remain on your credit report for several years, even after you?ve paid them off. But by reducing credit card balances (to 45% or less of the available credit,) paying off any overdue amounts and reducing the number of credit cards, you can improve your score dramatically in a relatively short period of time. Major credit restoration may require the services of a credit repair specialist.Put Up or Shut Up!The more money you put down, the better your chances of securing a loan and the better the rate you will be eligible for. These days if you don't have at least 15 to 20% of the purchase price, you may not even qualify for a loan with many institutions.Show me the money!In the not-so-distant past, most lenders didn?t require you to provide proof of income. Now, you must be prepared to show your W-2 forms and, if you're self-employed, you will need to produce several years? tax returns. Proof of business ownership and asset verification are also part of today?s standard operating procedures.Keep it real!Make sure you have money left over Stay within your budget. When getting pre-approved for your home loan, look for a mortgage specialist that offers options based on how much home you can actually afford.Moral of the story?When setting out to negotiate a mortgage loan in today?s market take advantage of these simple strategies and reap the benefits in the years to come.

If you qualify under Fannie Mae guidelines, you will be able to go up to 80% LTV and still get the lowest fixed interest rates available.

Thank you and all the best for 2008!

Hi :), when I try to add a topic, it does not let me SUBMIT, it tells me "This is a required field." Please help.

The headlines read, Save thousands with no-fee mortgage… Or No closing fees… Or No points charged… You know the ones.Of course being an adult, you realize that nothing in life is free. In the case of the so-called “no-fee mortgage”, even if certain closing costs are waived, these costs are paid for in the higher interest rate settled upon. Over time, this higher rate offsets any short-term savings you might get from a so-called “no-fee” loan.But let’s be real. Closing Costs accompany all mortgage loans. They’re defined as customary costs, above and beyond the sale price of the property. They’re charged to cover the costs of transferring the ownership of the property at the time of closing. There are always items to be paid in connection with the loan. There are always items (such as mortgage insurance) to be paid in advance. There are always funds such as tax and assessment reserves to be deposited with the lender. And there are always title charges including attorney fees and title insurance.Sometimes, however, lenders will claim not to charge “points” for the loan and this tactic is often construed as an advantage in the lenders favor over of engaging the services of a hard working mortgage broker who, invariably, needs to be paid for their services.Let’s say your broker charges 3 points on a $300,000, 30-year mortgage and gets you a rate of 6.0%. That would be $9,000 in fees, right?Let’s further assume that the lender counters with a no-points pitch and offers a rate of 7.0”%. With this offer, you would end up paying $68,882 in extra interest over the course of the loan!So, which would you prefer? $9,000 (3 points) in brokers fees, or $68,882 in extra interest with “no fees”?

Buying a home is one of the most important investments most couples will ever make and one that deserves special attention. Considering that you and your mortgage will be together for many years, shopping for a mortgage is a bit like proposing marriage. It behoves you to put a lot of thought into it before tying the proverbial knot.Let’s revisit the moment you fell in love. The new home had everything you wanted. It was in move-in condition, and, while slightly above your budget, it had all the amenities that you’d stipulated on you “must-have” list. You were fairly tight, and only had 10% to put down (your life savings) but the agent “found a way” and introduced you to a lender who offered you an adjustable-rate mortgage (ARM) allowing you to manage the monthly mortgage payments. As a safety net, you thought you could borrow against the rising value of your house when the new rate kicked in.Three years have gone by and the second phase of the ARM is about to begin. You now face a much higher mortgage payment, higher property taxes and higher insurance premiums. And with house price appreciation slowing, and a baby on the way, you are starting to feel desperate.In any situation, you deserve to be treated like the unique person that you are, with respect, patience and professionalism. Go online and punch in “best fixed rate mortgage specialists” and start the due diligence process. Look for a mortgage broker that gives you choices right from the beginning. If the broker appears pushy or intent on talking you into a particular type of mortgage right from the start, you should probably steer away. Your gut will tell you if the person you are evaluating is someone you want to work with for the next month or two. Ask yourself if this is someone you would feel comfortable referring to your loved ones.

During the past few years, many unsuspecting Americans were victimized by predatory lenders and fraudulent mortgage individuals and put into situations that have become unmanageable. Michael Calhoun of the Center for Responsible Lending says “Families all over the country continue to lose homes in record numbers, stripping families of their wealth and destroying entire neighborhoods”Predatory lending and mortgage fraud typically affects senior citizens, lower income and challenged credit borrowers. It forces borrowers to pay exorbitant loan origination/settlement fees, sub-prime or higher interest rates, and in some cases, unreasonable service fees. In short, these practices often result with the borrower being placed into inappropriate loans which, all too often, lead to defaulting or worse still, foreclosure.There were 1.7 million foreclosures in the US in the first eight months of 2007, and up to 2 million families are expected to lose their homes over the next two years, according to estimates by the Joint Economic Committee.“All around the country, aid agencies report a tidal wave of foreclosure cases”, says Sarah Gerecke, director of New York City’s Neighborhood Housing Services. She now employs six people full-time to provide mortgage debt counseling, and could use another 12. Two years ago, she had one employee.In our research for legal resources to help victims of mortgage fraud and predatory lending, we came across a comprehensive, well put together list of mortgage fraud resources by www.MortgageNewsDaily.com™ that provides information and direct links available nationwide as well as state-by-state.Report Mortgage Fraud and Identity Theft (Powered by www.MortgageNewsDaily.com™)Do you think you have been a victim? Tell us your story and help us fight mortgage fraud.

Good to know! Thank you!

Thanks Clay! Do you have a link?

I see this tool also as a numbers game... So far so good. I beleve that by taking the time to submit an actual quote along with detailed and relevant information, one can expect to do well in the long run.