QualifyBuyersNow Blog

Knowing that gas prices are up, it should not come as a suprise that tons of people are moving to Midland-Odessa.  This long time, oil production based, economy is thriving with the creation of jobs in the area.  What may suprise you is the fact that housing is hard to find in the Midland-Odessa market. 

Builders a building as fast as they can, rental properties are full, and houses are selling at or above the asking prices.  Sometimes, the properties don't even make it to MLS before they are sold by word of mouth alone. 

Experts in the area speculate that as long as oil stays north of $70 per barrel this surging market is likely to stay in tact.

Ron L. Robinson
Sr. Loan Originator

If you are under contract to buy or sell a home, be sure to ask the right questions of your lender or real estate professional.  Here are some quick facts that you need to be aware of:

• All loans require a 4506T.  This is a form that the borrower must sign. It allows the lender to request tax transcripts directly from the IRS.  If the government shuts down, these will not be processed and lenders will not fund transactions.
• FHA Mortgage insurance will be affected
• USDA programs would come to a halt.

After April 18th 2011, the FHA monthly MI premium will change from 90 basis points (bps) to 115bps on loans with less than a 5% down payment.  If your down payment is greater than 5%, the monthly mortgage insurance will change from 85bps to 110bps.  This is a 25bps increase. 

To quantify this change, Let's take a look at a $170,000 FHA loan. 

Currently, monthly mortgage insurance would cost you $123.00.  After April 18th 2011, the same monthly mortgage insurance will cost you $157.00.

The difference is $34.00 per month.

This will make conventional loans look even more attractive to prospective buyers.

Have you looked at your credit report lately?  Many of my customers are shocked to find accounts that they have paid not reporting correctly.  They are also suprised to find old collections reporting like they just happened.  These inconsistancies can be corrected. You just have to know how to make it happen.

To update incorrect information on your report, you should send a certified letter to the credit repositories that are recieving the incorrect information from the creditors.  If possible, include the proof that the account was paid.  This information typically needs to be from the creditor that is reporting the account.  If you do not have proof, but you know that you paid the account or that it is reporting wrong, not all is lost.  You can simply cite the incorrect information and send your letter to the credit repository that is recieving the incorrect information from the creditor. Remember to send the letter certified mail and request confirmation of reciept. Now the creditor has 30 days to either validate/update the information or remove it from your credit. Watch for a series of videos concerning this topic soon.

The TDHCA 90 day program is being discontinued. The TDHCA reported to us yesterday that they are out of funds. The 5 Million that was set aside to help first-time buyers realize the American dream of home ownership has run out.  The last day for new submissions is today by 5 pm so you would have to have overnighted your package yesterday. If you have a client that intends to utilize this program, give me a call so that we can explore other options that may help you complete your purchase.

- Ron L. Robinson

www.qualifybuyersnow.com

Today’s ever changing housing market, currently dominated by first-time homebuyers, is seeing an increase in demand for home warranties also known as residential service contracts. This trend seems to be indirectly attributed to increasingly constrictive lending practices, and higher down payment requirements. More directly, this increase in demand for home warranties is attributed to the fact that many of the homes on the market today are exempt from seller’s disclosure statements because they are bank owned properties that may have been vacant for some time. Homebuyers are wisely seeking protection from unexpected repair costs by purchasing residential service contracts that cover normal wear and tear of home appliances and systems during the first year of ownership. In response to this market trend, banks that hold substantial portfolios of REOs are now recognizing the value of offering home warranties as concessions to prospective buyers. Offering these warranties helps alleviate buyer concern thus allowing the banks to move more homes. As the cost of home appliances increases, and the number of bank owned properties continues to increase, look for the cost of home warranties to increase in the near future.

- Ron L. Robinson

On August 4th 2009, Taylor Bean & Whitaker Mortgage Corporation issued a press release stating that it was being terminated and/or suspended as an approved seller/servicer of mortgage loans.  This news came to my office on August 5th.  Those of you who were making payments on a mortgage to TBW will want to follow the link at the end of this entry for instructions on how to continue making your payments in a timely manner to the appropriate party. 

Bank of America has taken over TBW's entire loan portfolio.  If you got your TBW loan from me, please feel free to shoot me an email or give me a call so that I can direct you to the appropriate department with Bank of America.

Here is the link:

http://www.hud.gov/news/consumer-guidance.pdf