United States/NY/Melville

In a turbulent time in the mortgage industry, Somerset Mortgage Lenders stays ahead of its competition by lending a helping hand to senior borrowers. Along with saving seniors a lot of money with a reverse mortgage, many Somerset employees have gone the extra mile to make sure they remain friends with their borrowers by offering to lend a hand with home improvements.

One example of this is when a recent customer was going to pay $450 to paint a fence on her property and her Senior Lending Specialist, Sean Miller, offered to do it for free on his day off. "It feels good to help people in their time of need, not only by creating financial freedom that will save them thousands but also to help by lending a hand in other ways", Sean stated.  The borrower Inez Richardson remarked "Sean has given me my financial independence and a brighter look on the future. He has given so much for so little in return".

"You have never stood so tall until you kneel to help a senior citizen" Sean said.

Sean Miller is not the only an example of a Somerset Senior Specialist lending a helping hand. Because their product deals with people in times of need, our loan officers often encounter unfortunate situations. Another example of this is Vince Navarro, a team leader and Reverse Mortgage Specialist, recently helping a senior with no working bathroom living with basically an out-house accommodation, gain her bathroom facilities and her dignity back. "What’s great," Vince said, "is that we can remedy a situation not only for now but for the long term. Fixing the bathroom was my pleasure".

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SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

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This weblog is sponsored by Somerset Mortgage Lenders.

"Twitter, Facebook and our blog have changed the way we do business," said Robert Haufler, director of marketing for Somerset Investors Corp., (www.somersetmortgagelenders.com) a mortgage-banking firm in New York, New Jersey and Pennsylvania. "People can get mortgage rates on a daily basis. We talk about new programs or updates on existing programs. Cutting-edge people come to us, and they´re the ones with good ideas." The audience is a combination of homeowners and realtors.

In recent months Twitter and video blogs and posts have produced better results than Facebook, Robert said. As a result, Somerset has shifted its emphasis accordingly.

"Using social media has moved us up in the search engines and gives us a better page rank," he added. "Every tweet or posting gives us more exposure. We were spending $20,000 a month on pay-per-click advertising. We recently cut this in half because of the exposure we are getting on youtube, MySpace, Twitter and Facebook.

"When we do press releases, we tweet about them. About six publications have done stories on our use of social media. That, in turn, increases our page rankings. When we tweet about the stories, we get even more exposure.

"For example," Robert said, "go to Google and type in ´divorce buyout.´ The first organic (nonpaid) listing is ours." (Editor´s note: Robert made this comment several weeks ago; Somerset still came up at the top of the page when we repeated the search a few days ago.)

Somerset has two employees devoted exclusively to social media at an annual cost of about $100,000. One has a public relations background and previously worked with Internet media in the medical field. The other was a nightclub promoter.

"We moved to social media because we realized the world was changing," Robert added. "Everybody is busy. People don´t watch much television and they fast forward through the commercials. We weren´t getting the responses we used to. But when people type ´divorce buyout´ or ´mortgage rates´ into a computer, you know they want to hear your message."

As a result of these efforts, page hits have increased 148 percent since July.

Robert´s wife, an assistant to a member of the $1 million life insurance roundtable, has started moving away from ads in smaller, local newspapers to Twitter and Facebook.

In addition to the "Big Three" social media -- Facebook, LinkedIn and Twitter, Somerset uses AOL´s BBO, Google´s orkut, Digg, Deli.ci.ious and Yahoo! Buzz. Somerset submits information to more than 1,200 Web sites, working with 50 to 100 of them each day.

Robert finds LinkedIn to be the most useful for researching business contacts.

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This weblog is sponsored by Somerset Mortgage Lenders.

I was speaking to a friend over the weekend – she and her husband have been thinking of refinancing their existing home mortgage and they have been shopping around the web doing a research.

Their situation is not uncommon - many homeowners today do their home financing research on the internet. My friends asked that I not use their names, so let’s call them Harriet and Henry Homeowner to protect their privacy.

Harriet and Henry have owned their home for five years. When they purchased the home it was their first, and the realtor introduced them to the broker who provided the financing. They were confused by many of the forms sent to them during the application process, and were constantly told, “Don’t worry. Let us take care of the details. You have to get ready to move and that part of the purchase process is our job – relax!” NO ONE ASKED ABOUT THEIR PLANS OR FINANCIAL EXPECTATIONS, AND NO ONCE CARED ABOUT ANYTHING EXCEPT THEIR COMMISSION.

It turned out that all the relaxing resulted in shock therapy at the closing table. The closing costs, finally spelled out in agonizing detail the day before the closing, were almost 20% higher than Henry and Harriet expected them to be. To make matters worse, the margin on their hybrid adjustable rate mortgage loan was higher than they expected. Faced with no place to live as of the following Monday, and overwhelmed by the excitement of owning their first home, the Homeowner family went peacefully through the process as many first time homebuyers do.

With the fixed period of their hybrid adjustable about to expire in four months, Harriet and Henry decided that now is the time to refinance. They also plan to take about $75,000 of their equity out of their home to dormer the second floor of their home to make more room for their growing family. Having been rushed and hustled through the process the first time, this time they have vowed to think of and demand answers to ALL of their questions before they commit to a lender or a program. They are doing things the right way this time, but they are having some interesting experiences I wanted to share.

Harriet and Henry entered their information on a web site promising to have four lenders contact them with hours with offers specifically tailored to their needs. One form – one click – and suddenly the whole financial world was going to compete for their loan.

The first call came the next day. The loan officer was not interested in listening to what the Homeowners had to say about their plan for this new loan. All he wanted them to do was “Trust me – I AM a professional and MY expertise is all that you need to know. I will TELL you the best program and structure for your new loan!” After five minutes of this high pressure nonsense, my friends politely said good bye and chalked it up to the learning process. They wisely decided that anyone who was not interested in their needs and goals was not going to get their business!

The second call came that evening. This lender’s representative only wanted to push his company’s hottest product – a six month arm loan that was interest only for the first five years that came with a three year prepayment penalty as a bonus of dubious value. While he offered to send out paperwork immediately to them, he became hard of hearing when asked about other mortgage programs and products. They hung up on him with a curt request to please lose their phone number and never call back. Five minutes later a supervisor from this same national lender was on the phone, trying a more sophisticated and high level form of high pressure sale. The supervisor answered none of their questions as he tried to force them to say yes.

The third lender’s loan officer left a wrong number to call back – not confidence inspiring, and an easy decision for Harriet and Henry to cross off their list.

The fourth lender to call seemed to be more inclined to be helpful. The representative was polite, listened to their needs and faxed over a Good Faith Estimate of closing costs and information about the loan program she was recommending they take. The problem was that she demanded a lock in fee, an application fee, and an appraisal fee the SAME day – otherwise the offer could change. Harriet and Henry asked for a few hours to think things over. The rep promised to call them at 8pm that evening. That was three days ago and they are not holding their breath. Their refusal to fork over a bucketful full of fees seemed to wipe them out of this loan officer’s memory. Harriet and Henry have been regretful about the fees they paid on the original mortgage loan when they purchased their home five years ago; this loan officer’s desperate attempts to talk them into laying out money before they had time to think about the offer was not a mistake they intended to make again.

Frustrated, they went back to their current mortgage lender – after being told it would take about six weeks and still involved a full application process after being an on time customer for five years, they eliminated this option as well.

The web site which Harriet and Henry found promised four offers. Let me offer you four simple rules all consumers shopping for a mortgage loan should follow. Whether you’re a first time homebuyer, or if you are someone refinancing for the fifth time in ten years and consider yourself a veteran of the mortgage wars, these simple common sense rules will save you money and disappointments.

1)TAKE NOTHING FOR GRANTED. HAVE A LIST OF YOUR GOALS AND QUESTIONS IN FRONT OF YOU BEFORE YOU EVEN START TO SHOP! RUN AS FAST AS YOU CAN FROM ANY LENDER TOO BUSY OR UNABLE TO ANSWER YOUR QUESTIONS WITHOUT OBLIGATION.

2)DEMAND WRITTEN COST ESTIMATES AND EXPECT A GOOD LENDER TO CHEERFULLY PROVIDE THEM WITHOUT COMPLAINT THE SAME DAY. NEVER RELY ON ANY VERBAL PROMISES!

3)PAY NO FEES WITHOUT DETAILS! A REPUTABLE LENDER WILL NOT LOOK TO COLLECT FEES BEFORE YOU ARE COMFORTABLE WITH THEIR OFFER AND UNDERSTAND THE COSTS INVOLVED.

4)DO NOT RUSH INTO THE APPLICATION PROCESS. TODAY’S MORTGAGE REALITY ALLOWS CLOSINGS IN LESS THAN TEN DAYS – THERE IS NO REASON ON EARTH TO PROCEED UNTIL YOU ARE CONVINCED THAT YOU HAVE THE BEST SOLUTION POSSIBLE FOR YOUR NEEDS AND FINANCIAL ABILITIES AND ANY FORESEEABLE MAJOR LIFE EVENTS ON THE HORIZON.

A Story by Gregg Marcus.

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This weblog is sponsored by Somerset Mortgage Lenders.

Somerset Mortgage Lenders New Web Destination Pages - Feedback?

We at Somerset Mortgage Lenders strive to give every visitor to our website the same type of personal service that we give to the families and young business people who take advantage of our in home consultations.

It is with that sort of ethos in mind that we are giving our website landing pages a new distinctive look and feel; and we are asking for your feedback in making our site the most time efficient and easiest to navigate site in the mortgage lending field, bar none.

Please take a quick look at a few of our new landing pages:

For New Home Purchases
http://www.somersetmortgagelenders.com/Purchase_Loans.html

For Reverse Borrowers
http://www.somersetmortgagelenders.com/Reverse_Mortgage.html

For Refinance Loans
http://www.somersetmortgagelenders.com/Refinance_Loans.html

For Divorce Buyouts:
http://www.somersetmortgagelenders.com/Divorce_Refinance.html

For Debt Consolidation:
http://www.somersetmortgagelenders.com/Debt_Consolidation.html

For Home Improvements:
http://www.somersetmortgagelenders.com/home_improvement_loans.html

Do you have any ideas on how we can make your mortgage shopping experience online more enjoyable? Let us know at marketing@sicloans.com

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This weblog is sponsored by Somerset Mortgage Lenders.

Gregg Marcus

CREDIT MYTHS AND MAGIC – SECRETS SHARED

Credit is a wonderful and uniquely American concept – live today and pay for today tomorrow. Credit is like a drug addiction – once you try it you can never get enough of it. Credit is like quicksand – avoid it or you may sink underneath it and never be seen again. Credit is like magic –it enables me to manage my finances and allows me to invest profitably with other people’s money.

These four statements about credit reflect four drastically different attitudes and philosophies about budgets and spending habits. Which of the above best describes you and your credit habits and patterns? Have you even stopped enjoying the benefits or crying from the pain of the monthly burden of minimum payments long enough to think about it? If you haven’t, it is time for you to do it – before it is too late!

A credit report is nothing more than a mirror, is similar to a snapshot, and works like a key. The credit report shows your credit history – how much you owe today to whom, what your minimum monthly payments are, how you have paid your creditors, whether or not you have filed for bankruptcy, what type of bankruptcy and when, and any recorded judgments or tax liens you may have. The credit report contains an address history, a list of any and all creditors to whom you applied for credit that have run your report, and also has information about any disputes you have registered with the credit bureaus, as is your legal right to do.

The mirror analogy is the most important if you are trying to analyze what you do with credit – it will show you your spending habits and payment patterns as reported by your creditors to the three credit bureaus – Trans Union, Equifax, and Experian. If you are turned down for credit as a result of your report, the laws require the creditor to send you a notice informing you which bureau or bureaus contained the information that factored into your denial. The same legal notice contains the address you can use to obtain a FREE copy of your report.

If your monthly bills are more than you can afford, causing you to take out more credit to be able to live while paying your existing credit, you need to check yourself into rehab – you cannot get help too soon! A qualified loan officer from a reputable direct lender may be your life preserver – you can refinance, knock out the bills that are choking you, and take back control of your finances. Homebridge loan officers are trained to help, as we have the experience and the loan programs that are necessary, and more than 15 years of success stories to prove it. Grab the rope and pull yourself out of the mess before you hang yourself with it!

Some consumers actually make the credit game work to their advantage. These people understand that the value of credit and a good credit history lies in the opportunity to invest monies when the time is right. Because they use their credit when they are using their disposable income to invest and make money, they are always conscious of the payments and the interest costs associated with their actions, and seldom get into trouble. These consumers see the magic in the credit available to them, and do not lose sight of the dangers.

View your credit as the key to financial well being and fiscal health – it can unlock the cell door of your payment prison. The equity in your home may represent the solution you desperately need to get things back on track. Just remember the golden rule of mortgage refinancing – your home is your family’s castle, and there is no crime worse than encumbering it with a payment you cannot afford!

Article maintained by: Derek Nichlos

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This weblog is sponsored by Somerset Mortgage Lenders.

The American dream of homeownership is stronger than ever today. And in our income tax structure, the difference in retained income, or take home pay, is drastic when we compare the family that rents to the family that owns their home. Owning a home is perhaps the single most effective income tax shelter left available for the middle class. While 401k and other retirement savings plans do allow pre-tax contributions and the opportunity to earn interest on these funds that our employers do not take taxes out of, you cannot live in a retirement account, nor do they come with backyards for the kids. Many renters are paying so much in rent to the landlord each month that the tax benefits of owning their own home make the costs identical.

Owning a home means that your monthly housing expense is similar to a savings plan, while renters only support the savings plans of their landlords. Homes appreciate in value over time; just as your retirement accounts earn interest on monies BEFORE the taxes come out, so does real estate, and so will your home. Houses come in many shapes and varieties, as do people who rent them or those smarter people who own them. Owning the space you live in is the key to capturing this benefit. Whether you choose to buy a single family residence, or a multi family home that allows you to rent out part of the house, or a condo or a coop, getting out of the renter group and into the owner group makes financial sense.

You may think that this all sounds great, but you are wondering how the magical increase in your take home pay comes about. Well, when you took your job your employer had you complete an IRS form which set the number of dependents upon which taxes would be withdrawn from your paycheck. Your account can assist you in calculating just how many extra dependents you can claim to receive the income tax savings benefit each week instead of waiting until the end of the year for a refund. By this simple act of completing a form with the assistance of your accountant, you can see the tax savings benefit of your new home purchase immediately, from the very first paycheck you receive after the closing.

There is another pleasant surprise you get when you buy a home – the closing costs that you pay when purchasing your home also have tax savings benefits. You have to have an answer for the friend or relative who tells you all about the joys of getting that big refund check when you file your taxes. Just remind them that the IRS does not pay interest on your money when you overpay your taxes every week and get a refund in the beginning of the next year when you file your taxes. After all, it is YOUR money to begin with, so why should the government get to hold and use your money for free all year?

Today you can buy a home without any down payment, and you can finance your home in hundreds of ways. Find a reputable lender to open your eyes to the possibilities, check with your tax advisor about the advantages and potential savings, and take that first step in living the American Dream !

Maintained by Derek Nichlos

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This weblog is sponsored by Somerset Mortgage Lenders.

For Immediate Release:
Profile: A Conversation with Somerset Mortgage Lenders’ Executive Director Gregg Marcus

Melville/New York/USA

Gregg Marcus‘professional accomplishments are numerous, having run one of the top direct lending mortgage lenders for the better part of this decade being at the forefront of his success.  However, if you scratch beneath the surface, you will find that so, too, are his many charitable activities. Gregg is not only a proven executive, but at his core he is a philanthropist and a humanitarian who cares about his community and about causes that are important to us all. Mr. Marcus has earned accolades for his savvy as an entrepreneur, and now he’s earning the same kind of honors for his financial and personal donations to charitable causes. He has dedicated a significant part of his time, talents and financial resources throughout his career to organizations in New York and beyond. 

"Success in business is one thing; helping to change the conditions of others is quite another" he said; and after listening to him speak, I can say that Gregg Marcus is very successful at both.  He knows that one is not complete without the other.

There are many organizations and non-profit groups where Gregg Marcus could donate his time, but he prefers to donate his time and resources to organizations that he believes in. It’s what led him to become a founding member of the Jericho Jayhawks Boosters Association. And it’s why he donates his time to organizations such as the Young Presidents Organization, the Hineni Heritage Center, the Long Island Children’s Museum and the Sunrise Day Camp for Children.  Health is also important, and it’s why he’s an active member of the National Kidney Foundation.  Additionally, he received the Interfaith Committee of Remembrance Humanitarian Award for his charitable efforts to organizations in the New York area and beyond.

"Business accomplishments are great, but what are you doing to help the community?" Gregg Marcus asked in our conversation.  It was a refreshing insight to hear from someone in the notoriously rigid financial sector. This is a man who tirelessly supports organizations he believes in; not just with a check every now and then, but with a time commitment. 

"Not to sound cliche" Mr. Marcus said, "But we can complain about challenges in our society, or we can just go and try to do something about them".  After spending enough time with him,  it seems that this is a man who believes in more than just talking - he believes in action.  It’s why he spends countless hours and dedicates significant financial resources to organizations with causes he believes in.

Gregg Marcus knows how important personal commitment is.  He believes that successful people should give back by supporting organizations with their time, leadership and financial resources.  We all have opinions about news items, but very few people have enough knowledge to be quoted by the New York Post. In December of 2007, the Post quoted Gregg Marcus as he gave kudos to the Senate for passing an FHA modernization measure.  Gregg Marcus is one of those people who actually knows what affects the average person, and is not simply concerned with what affects corporations.  He operates as though we were all in this together, because we are.

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SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

Somerset Investors Corp. is a mortgage banking firm that prides itself on attaining the highest ethical and moral standards and is dedicated to providing quality mortgage products at value pricing to our customer. Somerset has a long-standing history of servicing its local community as a reliable mortgage company. Our goal is to establish a successful partnership with our customers, staff, investors, and markets that respect the interest and goals of each party. Somerset Investors Corp. has been built on the belief that to be successful in mortgage banking it must first begin by molding itself as a customer service firm that provides quality service to the public.

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This weblog is sponsored by Somerset Mortgage Lenders.

The following are the primary factors taken into consideration when determining whether to approve or deny a potential homebuyer’s application for a mortgage!

Property Value: An appraisal conducted by a licensed professional and based upon the both the current condition of the home and the relative selling price of comparable homes in the area tells the lender the value of the property you want to purchase. The lender uses this information to determine whether the home is actually worth the price you’ve offered to pay for it.

Credit: This includes your credit history and your current overall debt situation. Lenders like to see that those applying to borrow money from them already have a consistent record of paying bills and other debts on time. Late payments and defaults on previous loans (ie. credit cards, car loans, student loans, alimony, child support, etc.) present a potential borrower as less-than-creditworthy and make lenders reluctant to give them new loans. If your credit history shows difficulties as recently as the past two years you can still write an explanation of the circumstances that caused the difficulties and lenders will take it into account when making their decision.

Income and Employment Factors: This includes both your current income and your employment history. Typically, lenders like to see your current monthly expenses totaling no more than a third of your gross monthly income. Gross income, or all of the money that you’ve earned before taxes are taken out, may include alimony and child support received, and an average of your monthly commissions and overtime pay should you desire to have those factors considered.

Lenders also like to see applicants having a consistent work history in the same or similar occupation with a trend of steadily growing income over the several years leading up to the submission of the loan application. They will almost certainly verify your employment (except in the cases of certain type’s loans - i.e. (No-Income-Verification, Stated Income, and No-Doc loans).

If you are self-employed, have held your current job for under two years, get paid on a commission basis, there’s a good chance you’ll be asked to provide further information about your prior work history.

Mortgage Terms: A definitive factor in determining whether or not to approve your application for a mortgage is the amount of your proposed monthly payment factored as a percentage of your current income.

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This weblog is sponsored by Somerset Mortgage Lenders.

Costs of FHA Mortgage Insurance
by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True"
http://www.somersetmortgagelenders.com

Somerset Mortgage Lenders and Gregg Marcus strive to keep the public educated with tips meant to make getting your loan as easy and painless as possible. To this end, they have put together this brief article on the costs of FHA mortgage insurance.

FHA loans carry a higher mortgage interest premium than conventional loan programs, which only demand MIPs as little as .5% (for those homebuyers putting 10% down), with a renewal rate as little as .3% in subsequent years.

It is a widely-known fact that FHA mortgages help a wide variety of Americans who otherwise would not be able to afford a home to buy one. FHA insured loans are not for everyone, however. Though the down payment and therefore up-front costs are lower on FHA mortgages, the monthly payments might possibly be higher.

There is no clear-cut rule to whether a specific FHA loan would cost you more or less than a conventional loan. Just as with conventional mortgages, different FHA mortgages have different interest rates and different loan terms based on numerous factors, not least of which is your credit? With a conventional loan, your credit is considered jointly with your income.

As FHA loans are designed more for low-to-moderate income households, an applicant’s credit is weighted even heavier. The result of this could potentially be higher interest rates and (with the additional cost of monthly mortgage insurance premiums) higher monthly payments than you could get by coming up with a larger down payment and getting a conventional loan.

Of course, that is not always an option for would-be homebuyers. Fortunately, many of the closing costs associated with FHA mortgages can be financed into the loans. The FHA also helps homebuyers by imposing limits on how much money mortgage companies can charge in certain fees, such as loan origination fees which, according to the restrictions placed upon FHA lenders, cannot be higher than 1% of the total loan amount.

The most striking fact about the cost of FHA mortgage insurance however is its cost to taxpayers, that being nil. FHA mortgage is totally self-funded, with the money paid by borrowers in mortgage insurance premiums going directly into an account which pays for the FHA’s expenses. The bottom line of this is that not only do FHA-insured mortgages and FHA mortgage insurance benefit borrowers and lenders alike.

SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

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This weblog is sponsored by Somerset Mortgage Lenders.

What is a Divorce Buyout?
by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True"
http://www.somersetmortgagelenders.com

Somerset Mortgage Lenders and Gregg Marcus strive to keep the public educated with tips meant to make getting your loan as easy and painless as possible. To this end, they have put together this brief article on Divorce Buyouts.

A divorce home buyout (or a divorce buyout, for short) is simply when one party in a break-up buys out the other party’s share in the property that they own and have been residing in together.

Divorce buyouts are generally completed according to the following 3 basic steps:

1.) The parties determine and write into the separation agreement which of them will live in the home and which of them will have their interest in the property bought out.                    

2.) The party buying out their ex-spouse (or soon-to-be-ex), then applies for a refinancing loan to take the place of the original loan, including borrowing enough extra money to compensate the party who is to be selling/losing interest in the property.                             

3.) Two documents - a quitclaim deed and a consideration letter - are signed at the closing and filed in the recorder’s office of the county where the property is located.

It seems simple, yes?

And in many cases, it is. Provided everybody’s on the same page, a divorce buyout could be one of the smoothest processes in the divorce proceedings.

However far too often the divorce buyout is complicated by all that occurs prior to and during the process, The last thing you ever want to do in a divorce is complete the divorce proceedings without ever looking into whether or not you can really afford the court’s determinations and/or the settlement agreed to regarding the terms and conditions of the divorce home buyout arrangement.

If your spouse, for example, defaults on their payments while the divorce is still pending, not only could it severely negatively impact your ability to buy them out, but it can be detrimental to your credit rating as well.

It’s important to note, as well, that any divorce buyout agreement is incomplete without a date by which the buyout must be accomplished. This can cause a whole host of problems if an ex-spouse is reluctant to fulfill his or her end of the agreement, potentially dragging out the divorce buyout process indefinitely. In the worst of cases, you could even have to take them back to court to get it properly resolved, something no one want to have to do.

SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

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This weblog is sponsored by Somerset Mortgage Lenders.

Using Downpayment Gifts for Your FHA Loan
by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True"
http://www.somersetmortgagelenders.com

Somerset Mortgage Lenders and Gregg Marcus strive to keep the public educated with tips meant to make getting your loan as easy and painless as possible. To this end, they have put together this brief article on using downpayment gifts for your FHA loan.

Unlike with most other conventional loans, the Federal Housing Authority (FHA) allows borrowers to pay some or all of their down payment with gift funds. No verification of the source of the down payment money is required. All that needs to be done is for the money to first be deposited into the borrower’s bank account or an escrow account before and until the loan is approved, and for proof of that deposit to be provided.

Greater than half of first-time homebuyers receive gift money from relatives in order to help them pay for their down payment. Besides relatives, other accepted sources of down payment gifts are friends, labor unions, faith-based organizations, and charity organizations. Another valid (and novel) source of down payment assistance is through the Bridal Registry program whereby newlywed couples can get gift money deposited into an account for them to use towards a down payment on an FHA loan.

In 2004, President George Bush announced intentions to convince Congress to eliminate the down payment requirement for FHA loans entirely, but so far nothing has come of that.

Recent attempts in the U.S. Congress to pass legislation that would make it extremely difficult for charitable organizations that provide down payment gift funds to claim tax exempt status, thereby disqualifying them from being able to provide a down payment gift fund for FHA loans at all has fortuitously failed.

Despite the attempted U.S. Department of Housing and Urban Development (HUD) rule to eliminate all down payment assistance programs, the U.S. District Court intervened to protect low-to-moderate income potential homebuyers. The result of this injunction is that organizations like the Home Down Payment Gift Foundation and the Genesis Foundation can still claim tax exempt status and still provide down payment gifts to would-be FHA mortgages, at least until there is some sort of final resolution on the matter.

It is likely that compassionate wisdom and common sense will prevail in this situation as it is plainly obvious that allowing homebuyers to cover the cost of their down payment with down payment gift funds is far preferable to burdening low-to-moderate income households with higher debt.

By paying their down payment with gift funds, homebuyers begin their home ownership experience from Day One with equity in their new home, that home equity being equal to the amount of their down payment (or at least the amount covered by down payment gifts). This also puts these households that much closer to the day they own their homes outright.

SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

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This weblog is sponsored by Somerset Mortgage Lenders.

The Closing Process
by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True"
http://www.somersetmortgagelenders.com

Somerset Mortgage Lenders and Gregg Marcus strive to keep the public educated with tips meant to make getting your loan as easy and painless as possible. To this end, they have put together this brief article on The Closing Process.

You've found the home you want. You’ve made an offer which the seller has accepted. You've applied for a mortgage, and been approved. Move in day is almost here. There's only one more step - the closing.

The word closing in terms of real estate is the process by which the transfer of property from seller to buyer is finalized. Once your mortgage is approved, a date is set for the closing to take place: called a closing date.

Depending on the state in which the transaction is taking place, the closing process is conducted by one of the following representatives of buyer and seller, respectively.

1 An attorney
2 A real estate broker
3 A lender/loan officer
4 A representative of a title insurance company
5 A representative of an escrow company

In order for a closing to take place, several key items must first be prepared and delivered to the lender in advance

1 Title search and title report
2 Title insurance binder
3 Hazard insurance binder
4 Property survey
5 Inspection certificates - for termites, sewer or septic, and well (where relevant)
6 HUD 1 settlement statement - a list of all credits and charges itemized for you and the seller, according to the terms of the contract

At the time of closing, the borrower signs many documents, most significantly a mortgage/deed of trust and a promissory note. These are loan documents granting the lender a lien against the property you’re purchasing as a way of securing your repayment of the loan. The promissory note is the borrower’s legal promise to pay back the loan. The mortgage/deed of trust is the legal instrument recorded in the local office of public records.

SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more

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This weblog is sponsored by Somerset Mortgage Lenders.

New Home Financing
by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True"
http://www.somersetmortgagelenders.com

Somerset Mortgage Lenders and Gregg Marcus strive to keep the public educated with tips meant to make getting your loan as easy and painless as possible. To this end, they have put together this brief article on New Home Financing.

Fixed Rate Loans

Several categories of conventional loans exist, the most common and familiar being the fixed rate mortgage. In the cases of fixed rate mortgages, the borrower will lock in an interest rate, and pay down both the principal and interest on the loan at that interest rate every month until the mortgage is paid off. The most typical term of a fixed rate loan is 30 years, though fixed rate mortgages can also be obtained for much shorter terms, the primary difference being in the size of the monthly mortgage payment.

Conforming Loans

Other conventional loans are known as conforming loans. In these cases, an arrangement is made between borrower and lender that comply with the stipulations of two federally run mortgage trading companies (or Government Sponsored Entities - GSEs) Fannie Mae (FNME) and or Freddie Mac (FHLMC).

Fannie Mae and Freddie Mac does not directly approve or deny loans. They buy and sell home mortgages, working with lenders to make home ownership easier for people to attain. Lenders like to sign up borrowers with conforming loan, because they can then sell these loans to Fannie May or Freddie Mac in order to more quickly receive the funds coming to them, and use those funds to make other investments. Fannie Mae and Freddie Mac, in turn, then repackage these loans to sell to investors as securities.

The current guidelines for a conventional Fannie Mae loan set a maximum purchase price for a single-family home at slightly above $415,000 (though residents of Alaska, Hawaii, or Guam may be able to qualify for an even larger loan).

The interest rate as well as the short- and long-term pricing on a conforming loan is determined primarily by the type of loan applied for. Also taken into consideration will be the amount of funds you already have to contribute to closing costs, your credit rating, credit score, and credit history, your employment history, and the type and location of the home in question.

Jumbo Loans

Other forms of conventional loans are nonconforming loan instruments that do not meet Fannie Mae or Freddie Mac loan qualifications, such as jumbo loans, or loans so large they fall outside the Fannie Mae and Freddie Mac loan limits (or purchase limits). Jumbo loans are provided by private investors and as such ordinarily come with much higher interest rates than conforming loans.

FHA Loans

Government entities from a local to a federal level and private entities alike have worked to Develop loan programs that make home ownership a reality for many people considered Under-qualified for traditional mortgages, these include; loans for first-time homebuyers, people with a low-to-moderate income that are insured by the Department of Housing and Urban Development (HUD) via the Federal Housing Administration (FHA). HUD and the FHA do not make loans directly, rather they insure loans; meaning that the lender still gets paid back - even if you default on the home loan.

New Home Purchase Loans are available from Somerset Investors Corp. in the following states: CA DE IN MT NM RI TX CO FL MA NC NY SC VA CT GA MD NH OR TN VT DC HI ME NJ PA

SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more

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This weblog is sponsored by Somerset Mortgage Lenders.

Why Choose an FHA Mortgage
by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True"
http://www.somersetmortgagelenders.com

Somerset Mortgage Lenders and Gregg Marcus strive to keep the public educated with tips meant to make getting your loan as easy and painless as possible. To this end, they have put together this brief article on reasons why borrowers would choose an FHA Mortgage.

The Federal Housing Authority (FHA) insures loans against default, protecting both lenders and borrowers. It neither makes loans directly nor sets the interest rates on loans it insures. FHA insured loans can be used to purchase new or refinance existing 1-4 family homes, condominiums, or mobile or manufactured homes on a permanent foundation.

Many excellent reasons exist to select an FHA mortgage, particularly if you fit one of more of the following qualifications:

1.)     You are a first-time homebuyer
2.)     You are unable to offer much of a down payment
3.)     You would like to have the lowest possible monthly mortgage payments
4.)     You have concerns regarding monthly mortgage payments increasing at some point
5.)     You have concerns regarding the consequences of falling behind on your monthly mortgage payments
6.)     You have concerns about even being able to qualify for the loan in the first place
7.)     Your credit is less-than-ideal

If any of those factors apply to you, then an FHA mortgage might be just thing for you to apply for. This is because FHA mortgages are insured, offering several protections and benefits otherwise unavailable to you through most other loan packages.

The benefits of an FHA mortgage include, lower rates, since it’s the Federal Government insuring FHA loans for the lenders, FHA mortgages typically offer interest rates considerably lower than the norm. For this reason alone, it is always worth comparing all other loans available at any given point in time against FHA-insured loans.
Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak with a LIVE Loan Officer now.

SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

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This weblog is sponsored by Somerset Mortgage Lenders.

Consolidating Debt
by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True"
http://www.somersetmortgagelenders.com

Somerset Mortgage Lenders and Gregg Marcus strive to keep the public educated with tips meant to make getting your loan as easy and painless as possible. To this end, they have put together this brief article on consolidating your debt.

Debt consolidation was designed to help individuals who are “drowning in debt” to regain control of their financial lives. Consolidating debt gives individuals the chance combine their various monthly payments into a single monthly payment that is usually lower than the sum of the individual monthly payments on the same debt. Payments on consolidated debt are also quite often at a lower interest rate than the rates offered by the individual lenders.

1 Warning Signs

If one or more of the following applies to you, debt consolidation may be in order

a You pay for normal living expenses with credit
b You transfer balances around from one credit card to another
c You can only afford the minimum monthly payments on your credit cards, and no more
d You have maxed out one or more credit cards
e You find yourself spending more than half your income to pay your monthly credit card payments
f You’re looking to open yet another line of credit in order to better manage your current debt, expenses, and lifestyle

The following is a breakdown of some of the best and most common ways to consolidate debt

2 Debt Consolidation Loans

The traditional way to consolidate debt is to take out a debt consolidation loan. This is a personal loan that is unsecured, and therefore considered riskier other types of loans. Lenders therefore will usually charge higher interest rates for these loans, the advantage to getting such a loan being the single (and hopefully smaller) monthly payment. People with lots of debt may find they have difficulty getting a lender to give them a debt consolidation loan, however, and may need to look further to find a viable debt consolidation solution.

3 Debt Settlement

Debt settlement agencies help you resolve debt by becoming the intermediary between you and your creditors, You stop paying your various creditors and instead make a single payment to the debt settlement agency.

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak with a LIVE Loan Officer now.

SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

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This weblog is sponsored by Somerset Mortgage Lenders.

Downpayment Assistance
by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True"
http://www.somersetmortgagelenders.com

Somerset Mortgage Lenders and Gregg Marcus strive to keep the public educated with tips meant to make getting your loan as easy and painless as possible. To this end, they have put together this brief how to guide on downpayment assistance.

Potential home buyers often discover that while they’ll have no trouble making their monthly mortgage payments, they nonetheless can’t buy a home because they lack the funds to make the necessary down payment and closing costs. Fortunately, a number of solutions to this problem exist, one of the most common being: down payment assistance programs.

While sellers are forbidden from giving gifts of down payment funds to their potential homebuyers directly, these down payment assistance programs guarantee that funds to financially-challenged potential homebuyers are delivered at closing to cover all or a portion of the down payment and closing costs.

Only certain sellers will participate in these programs, and it can often take a great deal of work, mandatory classes, and extra paperwork to accomplish. The upside is that not only can people afford homes who otherwise couldn’t, but they might even get a lower interest rate on their loan.

First the seller would enroll the home in a relevant program, contributing funds equal to the amount of down payment assistance the buyer is to receive at the time closing, plus a fee of around 0.75% of the purchase price of the home. Then, upon closing, the down payment is then wired from the program to the agent handling the closing, keeping the seller removed from the process of transferring those funds.

Sellers can also help reduce the cost burden on buyers by offering to pay all or portions of the closing costs involved in the sale of the home. They do this by simply giving back to a part of their proceeds to the buyer at the time of closing. There are limits, however, on how much assistance a seller may provide, depending on the kind of loan the buyer is obtaining.

And though down payment assistance may seem undesirable to sellers considering whether or not to accept someone’s offer to buy their home, it could actually be to the seller’s advantage every bit as much as the buyer‘s. This is because a buyer able to afford the closing costs on a home can more easily get away with making a lower offer (and having it accepted), whereas a buyer requiring down payment assistance is more likely to make an offer closer to the seller’s asking price in order to compensate for their need for down payment assistance.

Realtors and lenders both are qualified to aid would-be homebuyers in finding and selecting the right down payment assistance program. Realtors and lenders alike are generally more than glad to explain how an offer to purchase property should be phrased in order to.

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak with a LIVE Loan Officer now.

SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

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This weblog is sponsored by Somerset Mortgage Lenders.

Another Humbling Testimonial Proves That Somerset Mortgage Lenders Truly Helps Make Owning a Home a Reality For Borrowers
by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True"
http://www.somersetmortgagelenders.com

Somerset Mortgage Lenders and Gregg Marcus work hard every day to make the experience of getting your loan as easy and enjoyable as possible. So it's even more rewarding when a satisfied consumer comes forth with a heartfelt letter of recognition, a thank you for a job done right.

Here is a yet another letter on this subject, recently submitted to our offices at 290 Broadhollow Rd in Melville, NY 11747

"To Gregg Marcus,

Hello Gregg,

I just wanted to take this time to write a letter expressing how happy I am to have worked with the Somerset Investors Team. Especially, Nancy Grana, and Catherine Belle. For the past year, my wife and I have struggled with making our mortgage payments. I was very concerned that we might lose our house. And since my mother lives with us and she depends on her disability check, it would have been extra hard for her to find somewhere else to live. And I did not want to fail my family at all. 

Although I was a little skeptical with working with any loan investor, I took a chance with Somerset. I didn’t believe that anything would go through due to our credit history. But I really had no choice and after Nancy starting working with me, she demonstrated how committed she was to try to make this work. And she did just that. I was a little upset when I turned over to someone new, but Catherine Belle filled in just fine. She worked with me to finish the job. Both were very concerned about their customer.

I think that the Somerset staff has proved that even in this struggling economy, there is still hope for those of us that are hard working people to make it through. But without the encouragement, not many will be able to follow through. I want to thank Nancy Grana and Catherine Belle for their diligence to see this through. My mind and heart are more at ease than before. I can’t thank them enough for what they have done. I will be sure to refer Somerset to anyone that I speak with. God Bless

Best regards,
Marcus"

We would like to thank Marcus as well for allowing us to serve as their loan partner - helping all their dreams get closer to becoming reality!

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak with a LIVE Loan Officer now.

SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, home improvement, mortgages, refinancing, reverse mortgages, FHA loans & more get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

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This weblog is sponsored by Somerset Mortgage Lenders.

Find The Right Home Loan Program
by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True"
http://www.somersetmortgagelenders.com

Somerset Mortgage Lenders and Gregg Marcus strive to keep the public educated with tips meant to make getting your loan as easy and painless as possible. To this end, they have put together this brief how to guide on finding the right home loan program.

Whether it’s to purchase a new home or refinance your current home, there are an assortment of loan programs you have to chose from, based on a combination of your objectives and your eligibility.

Conventional Loans: Conforming Loans and Jumbo Loans

The conventional loan is the most common kind of loan, available to most people who have at least 3% of the requested loan amount available to pay as a down payment. The two most common types of conventional loan are conforming loans and jumbo loans.

Conforming loans are a type of conventional loan that are secured by Freddie Mac (FHLMC), Fannie Mae (FNMA)  and other GSEs, or Government Sponsored Entities. These GSEs do not directly lend the money to borrowers but rather work with various lenders country-wide to provide loans that meet the average homebuyer’s needs. These entities also buy mortgage loans from lenders in order to re-package them as securities available for sale to investors on the secondary market.

For loan amounts that are higher than the loan limits set each year by the GSEs, private investors offer jumbo loans. The trade-off of going to a private investor to borrow a larger amount of money is that the interest rate on such loans is also usually higher.

Special Circumstances: Loans for First-Time Homebuyers, Low-Income Households, and People with Poor Credit

Government entities from a local to a federal level and private entities alike have worked to develop loan programs that make home ownership a reality for many people considered under-qualified for traditional mortgages. These include loans for first-time homebuyers and people with a low-to-moderate income that are insured by the Department of Housing and Urban Development (HUD) via the Federal Housing Administration (FHA).

HUD and the FHA do not make loans directly, rather they insure loans, meaning that the lender still gets paid back even if you default on the home loan. Often, FHA insured loans are available with down payments lower than 3% of the total loan amount. There is a limit to how high of a loan the FHA will insure, but the limit is at least high enough to allow people in qualifying circumstances to buy reasonably.

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak with a LIVE Loan Officer now.

SOMERSET MORTGAGE LENDERS
specializing in: purchases, debt consolidation, divorce buyouts, home improvement, mortgages, refinancing, reverse mortgages, FHA loans & more get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

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This weblog is sponsored by Somerset Mortgage Lenders.

A Testimonial and A Thank You
by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True"
http://www.somersetmortgagelenders.com

Somerset Mortgage Lenders and Gregg Marcus work hard every day to make the experience of getting your loan as easy and enjoyable as possible. So it's even more rewarding when a satisfied consumer comes forth with a heartfelt letter of recognition, a thank you for a job done right.

Here is one such letter, recently submitted to our offices at 290 Broadhollow Rd in Melville, NY 11747

"From:
Mark & Anna
Dayton, Texas

June 15, 2009

To:
Somerset Mortgage Lenders

Dear Somerset:

Although this may be an overlooked task, we feel that we must bring to your attention the exceptional service that we received from you and the entire Somerset Mortgage Lenders organization.

We are, of course, very delighted to have had the pleasure of working with you during the loan acquisition. Your professional and courteous attitude, expert knowledge, and patience in handling our specific issues were very important to our complete customer satisfaction.
In the past, I felt that loan service providers were not sensitive to our needs and provided the quickest and most convenient solution to my problems from their perspective. But not in this case. You and the entire Somerset Mortgage Lenders organization handled our issues as if they were their own, and we are completely satisfied. We again thank you for the exceptional and professional service and look forward to patronizing your organization.
Please forward this letter to the entire organization as we appreciate their hard work, professionalism and understanding in completing this transaction.

Sincerely,

Mark & Anna"

We would like to thank Mark & Anna as well for allowing us to serve as their loan partner - helping their dreams get closer to becoming reality!

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak with a LIVE Loan Officer now.

SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, home improvement, mortgages, refinancing, reverse mortgages, FHA loans & more get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

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This weblog is sponsored by Somerset Mortgage Lenders.

Understanding Your Credit
by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True"
http://www.somersetmortgagelenders.com

Somerset Mortgage Lenders and Gregg Marcus strive to keep the public educated with tips meant to make getting your loan as easy and painless as possible. To this end, they have put together this brief how to guide to understanding your credit.

Credit is the borrowing of money with the intention of repaying the lender at some later point in time. Examples of credit include: credit cards, home mortgages, student loans, and car loans.

There are 3 primary agencies that compile information on an individual’s credit history and produces a report which lenders use to help determine whether or not to approve a request for credit. These 3 main credit reporting agencies are: Experian, Equifax, and Trans-Union.

A credit report includes an individual’s name, address, social security number, current employer and employment history, and previous credit history. A person’s credit history includes various types of accounts (ie. bank accounts, credit card accounts, student loans), the respective balances remaining, the payment status (ie. whether or not payments were made on time), and any collection information. A person’s credit report contains information on that person’s credit history going back 7-10 years.

A credit report will also identify how often, when, and by whom an inquiry was made into the individual’s credit. This is valuable information to lenders as it shows them how frequently a person is applying for additional credit. And a credit report will identify any legal actions taken against an individual for the purposes of reclaiming money owed.

In instances where a person’s credit history is lacking, lenders may take other proof of credit into account, such as rental payment receipts and utility bills. It is difficult to obtain credit without proof of some sort of existing credit history, however short or small.

When a consumer applies for a loan or other form of credit, the lender will contact one of these credit bureaus to review the applicant’s credit report. Although most of the information collected by each of the agencies is the same, slight differences may exist in an individual’s credit report from each agency. In addition, errors will often exist on credit reports.

Different lenders will pull different agency’s credit reports on their applicants, making it essential for every consumer to make sure all 3 of their credit reports are accurate. Fortunately, every American is entitled to receive one free copy of their own credit report per year from each credit reporting agency. But even if you’ve already received your free credit report from each agency for a given year, you can still purchase an additional copy at any point in time you like for a small fee.

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak with a LIVE Loan Officer now.

SOMERSET MORTGAGE LENDERS
specializing in: purchases, debt consolidation, divorce buyouts, home improvement, mortgages, refinancing, reverse mortgages, FHA loans & more get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

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This weblog is sponsored by Somerset Mortgage Lenders.

How Much Should I Put Down On My Mortgage?
by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True"

Somerset Mortgage Lenders and Gregg Marcus strive to keep the public educated with tips meant to make getting your loan as easy and painless as possible. To this end, they have put together this brief explanation of how much you should expect to put down on your mortgage.

In an ideal scenario, you would buy your home with a 20% down payment, have closing costs that come to around 3-5% of your home’s purchase price, and have enough money remaining in your bank account to cover 2-3 months of housing expenses.

The peace-of-mind this gives lenders usually translates into a nicer deal for you. And as a bonus, you start out owning your home with a sizable amount of equity already in it.

Of course, it’s not all that easy to meet those qualifications, meaning that most home loan scenarios are somewhat less than ideal. First-time homebuyers, for example, may have great difficulty in coming up with that 20% down. That amounts to $40k down on a $150k mortgage or $70k down on $250k.

Fortunately, over the past several years, lenders have started showing an increasing willingness to finance the majority of home’s purchase price - in some cases as much as 97%. That amounts $4,500 down on a $150k mortgage or $7,500 on $250k.

This is because lenders are now able to sell loans with as much as 97% financing to the Federal National Mortgage Association (Fannie Mae) to be bundled as securities sold to investors on the secondary market, thereby taking the risk of making the loan off of themselves.

The allure of down payments as low as 3-5%, however, is deceptive and should be weighed against the “costs”, namely that you would start out owning your home with very little in home equity, and with less than 20% down, your mortgage insurance rates could run quite high.

Though mortgage insurance rates for fixed rate loans given to people with decent credit are generally standard across the board, if you have poor credit or are considering an adjustable rate loan, you may want to consider putting up more of a down payment or risk paying exorbitant insurance rates monthly.

Finally, we come to the popularly-sought “Zero-Down Loan“. City and state organizations have programs benefiting potential homebuyers with low-to-moderate incomes and those looking to buy in urban areas. These programs offer loans that are below-market rates with little-to-no down payment necessary.

The enticing proposition of 100% financing is available!

SOMERSET MORTGAGE LENDERS
specializing in: purchases, debt consolidation, divorce buyouts, home improvement, mortgages, refinancing, reverse mortgages, FHA loans & more

get a free quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783

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This weblog is sponsored by Somerset Mortgage Lenders.

Mortgage Financing Costs & Fees
by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True"

Somerset Mortgage Lenders and Gregg Marcus strive to keep the public educated with tips meant to make getting your loan as easy and painless as possible. To this end, they have put together this brief explanation of mortgage financing costs & fees.

The following is an overview of the fees and other costs associated with getting a home mortgage

Down payment: Your down payment is the money you pay out of pocket towards the total purchase price of your home. When borrowing money to buy a home, you can expect to pay a percentage of the purchase price with your own money, rather than the lender‘s. Different mortgages and loan packages require you make different down payments (i.e. 5% or 20%).

Monthly payment: The money you pay each month in mortgage payment can be applied to your loan in a number of ways. The payment is usually divided amongst loan principal (the remaining balance on the actual amount borrowed) and interest. However, a wise choice (and sometimes a loan requirement) would be to pay an additional amount each month to go into an escrow account to pay for taxes and insurance.

Mortgage insurance: In the case of mortgages for less than 20% of the purchase price of the home, a borrower is usually required to pay some sort of mortgage insurance. Insured home loans enable people to buy homes with smaller down payments than would otherwise be required. The cost of mortgage insurance varies greatly, generally depending on both the down payment amount and the type of loan chosen.

The Veterans Administration (VA) and the Federal Housing Administration (FHA) are two federal government institutions that insure different types of home loans. Borrowers can also turn to sundry private organizations to acquire mortgage insurance.

Closing costs: At the time of closing - when you officially, legally take title of the home - certain costs are due, many of which you will be responsible for paying. In general, you can plan to pay an extra 5% on top of your purchase price towards closing costs. Whenever you apply for a loan, the lender is required by law to provide you with an estimate of the closing costs associated with that loan. Items on that estimate may include, *Origination fees - the loans processing costs of processing your loan (such as: appraisal and property) *Title insurance - often an optional but highly recommended expense that insures you against problems with the title (i.e. property liens) undisclosed to you prior to the time of purchase.

SOMERSET MORTGAGE LENDERS
specializing in: purchases, debt consolidation, divorce buyouts, home improvement, mortgages, refinancing, reverse mortgages, FHA loans & more

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This weblog is sponsored by Somerset Mortgage Lenders.

The Underwriting Process
by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True"

Somerset Mortgage Lenders and Gregg Marcus strive to keep the public educated with tips and tricks meant to make getting your loan as easy as possible. To this end, they have put together this brief explanation of the underwriting process

In terms of real estate, the underwriter is the representative of a lender who reviews a home buyer’s loan application and associated documentation. It is in the underwriting process that the determination is made whether to approve or deny a request for a loan.

In the underwriting process, the underwriter analyzes and evaluates;

Your ability to pay back the loan - by looking at your current income and obligations.
Your willingness to pay back the loan - by looking your credit.
The collateral you’re offering for the loan - by looking at the appraised value of the property in question in relationship to the size of the loan requested, or what is known as the Loan-to-Value ratio.

The underwriter examines your loan application to answer relevant questions such as;

Your source of income and its consistency and reliability.
The adequacy of your income to cover the costs of your new mortgage.
The overall amount of long-term debt you have already.

A key factor in determining whether or not to approve your loan application is your credit history. It is well worth every loan applicant’s while to review their own credit first, prior to applying for a loan. By checking your own credit before the underwriter ever sees it, you have the opportunity to identify and fix any errors and make reparations on old unpaid debts if at all possible, thereby improving your credit rating and the likelihood of being approved for the loan.

When a borrower doesn’t have an extensive enough credit history for an underwriter to make an informed decision about the borrower’s creditworthiness, underwriters will often accept other payment records for consideration, such as utility bills and rental payment receipts.

Whether an applicant has a provable and adequately lengthy credit history or not, an underwriter may require the applicant also produce a complete paper trail of recent banking account activity (ie. checking and savings). This may include deposit and withdrawal receipts, monthly statements, cancelled checks, etc.

SOMERSET MORTGAGE LENDERS
specializing in: debt consolidation, divorce buyouts, home improvement, mortgages, purchase, refinance, reverse mortgages, FHA loans & more

get a free quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783

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This weblog is sponsored by Somerset Mortgage Lenders.

How to Prequalify for a Home Loan
by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True"

Somerset Mortgage Lenders and Gregg Marcus strive to keep the public educated with tips and tricks meant to make getting your loan as easy as possible. To this end, they have put together this brief explanation of the steps you must take to be prequalified for a loan.

To be pre-qualified for a loan means that a lender has done a preliminary review of your basic information and, without confirming any of it for validity nor checking to see if there’s any significant information you’ve withheld that could further affect your creditworthiness, has determined that, based on their standards, you would qualify for a loan up to a specific dollar amount should you apply with them.

Being pre-qualified does not mean that you are pre-approved. Pre-approval is a commitment to approve you for that loan, should all the information you’ve provided be accurate and complete, whereas pre-qualification just means that, according to their standards, you look to qualify for said loan amount.

Getting pre-qualified has several advantages, read the following:

1.) Pre-qualification lets you know how much you can actually afford on a home, which helps tremendously in focusing what could otherwise be an overwhelming house-hunting experience.

2.) Pre-qualification demonstrates to sellers that you are serious buyer who is ready, willing, and able to follow through on an offer.
                                                                           
3.) pre-qualification helps the whole mortgage application process to go through much faster, as a great deal of the information you need to provide is already in the lender’s possession.

Another advantage of pre-qualification is that pre-qualified borrowers can usually lock-in their interest rate, a huge benefit when you consider how much interest rates can rise between the time you start your search for a home, the time you complete your loan application process, and the time you close on the house. There may be a lock-in fee, but if it’s reasonable, it’s usually worth it. Locked-in rates are usually valid for 30-90 days, depending on the lender.

When trying to lock-in an interest rate, ask whether the lender has a "float down" feature. This allows you to lower your interest rate once, if prevailing rates go down during your lock-in period, preventing you from getting stuck with a higher interest rate than if you hadn’t locked it down at all.

SOMERSET MORTGAGE LENDERS
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