RH Funding Co. is still doing FHA loans down to 620 score! If you believe your credit score to be between 620 and 640, now is the time to apply, before these guidelines change forever.

Courtesy of RH Funding Co Orlando – www.LendingFL.com

The average 30 year fixed mortgage rate of 4.57% remains unchanged from a week earlier.  Last year this time, the average 30 year fixed rate was 5.14%.   15-year mortgages were lower of course, at 4.06%,  down from 4.63% a year ago.

These mortgages came with an average required payment of just shy of three quarters of a point (ex. .7 point on a $200k loan=$1,400).

Depending on individual’s situations, it may make sense to buy down your rate (pay points) or it may make sense not to.

Courtesy of RH Funding Co. Orlando ~ www.LendingFL.com

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Law Enforcement – Police, Sheriff, Parole, and Correctional Officers

Fire Rescue – Firefighters, EMS, EMT, and Paramedics (volunteer also)

Medical – Nurses, Laboratory Technicians, Pharmacists, Therapists, Social Workers, Chiropractors, Medical Administrators, Dental Hygienists, Chaplains

Teachers – Teachers, Special Education Teachers, Guidance Counselors, Librarians, Instructors, Tutors, Athletic Directors, Coaches and School Nurses

Military – Army, Navy, Marine Corp, Air Force, Homeland Security, U.S. Coast Guard, U.S. Merchant Marines, the Army and Air National Guard, and Veterans

Government – Federal Agency, State Agency, County and Municipality Workers, Departments of Agriculture, Community Affairs, Environmental Protection, Health and Senior Services, Human Services, Labor, Law and Public Safety, Military and Veterans Affairs, Parks & Forestry, Homeland Security, Lottery, the Library, the Public Defender, and Travel and Tourism

Apply Online www.LendingFL.com

#1 Pay your bills in a timely fashion

Approximately 35% of your credit score is directly related to your ability to make payments on time.  This is very heavily weighed, especially when applying for mortgage financing.  The bank wants to know you will pay your mortgage on time every month.   They are lending you a lot of money in hopes that you pay it back, with interest.  If you don’t typically pay your current debts on time, chances are you may not qualify for a mortgage at all, let alone one with a competitive interest rate.  The more recent the delinquent account, the greater the impact it will have on your score, and ultimately your loan approval decision.

#2 Pay down your credit card debt.

Approximately 30% of your credit score is derived from your proportion of available credit in relation to the total amount of available credit.

Say you owe $3,000 on a card with a $5,000 credit limit, this would be viewed as negative on your credit report and reduce your overall credit standing/score.  If you were to pay this card to below half  (50%) of your available credit limit, you could have an immediate positive impact on your credit score.

# 3 Don’t apply for new credit or loans.

Every unnecessary inquiry (when you have your credit checked by a bank, employer, insurance company, etc.) has the possibility of lowering your credit score as much as 10 points or more.  Be careful who you give your social security number to and try to avoid applying for a mortgage on one of those sites that lenders compete on.  These are just lead portals and they sell your information to random mortgage companies that could possibly pull your credit report and lower your score dramatically.

# 4 Skip the lines at the bank.Often times, consumers go directly to the bank that they have their chacking and savings account with.  These are what is referred to as retail operations and the consumer usually pays a higher interest rate to pay for the higher overhead that banks like this incur.  Don’t rule out your local broker or mortgage lender, they may have access to rates tha aren’t even on the open market.  Pick someone you trust and allow them to do their job, it’s that simple.  Make your decision in the beginning of the process and do all of your homework at the start to avoid last minute surprises.

Rates are the lowest in history right now and they won’t be there for long.  Take advantage and get locked in to a low mortgage rate for the rest of your life, now is the time!  If you follow these simple steps, you can rest assured that the banks will be knocking down your door to finance your home.

Source: Jason L. Gonzalez – RH Funding Co. – Apply online at www.LendingFL.com

On Wednesday, The Mortgage Bankers Association said that mortgage applications are up 9% from just a week ago.  Refinance transactions alone rose 13 percent, the highest level since over a year ago.

Freddie Mac states that the average rate for a 30-year fixed loan dropped to 4.69 percent last week, the lowest average rate since they began tracking rates in 1971.

Why is this happening? Investors are reacting to the debt crisis in Europe and are putting their money into treasury bonds, a lower risk investment vehicle.   Since there are more investors, the yield on those bonds is lower which forces mortgage rates lower as well.

The bottom line – Refinance or Buy a Home Now, there may be no better time in history.

Looking for more great info?  Check out www.LendingFL.com.  Questions?  Give RH Funding Co. Orlando, a mortgage lender, a call at 888-648-0005.

The RH Funding Co. Customer Experience

 A Step by Step Breakdown of The Mortgage Application and Approval Process

• Visit our secure website www.LendingFL.com and Apply Online.

• Once your application is completed, you will receive an email confirming the receipt of your application.

• If the application is complete, you will receive an email with a pre-qualification letter.

• You will receive a phone call from your personal Mortgage Consultant explaining your loan options and answering any questions that you may have.

• Your Realtor will then submit the Contract for Purchase along with our pre-approval letter.

•  Once the offer is accepted and the Contract for Purchase is executed, you will receive an email with instructions regarding “E-disclosures”

• Complete the “E-disclosures” package and upload any necessary, outstanding documents.

• You will receive a phone call from your personal Loan Processor to notify you that an appraisal company will be calling soon to collect payment for the appraisal.

• You will then receive a call from the appraisal company anywhere between 24 and 48 hours later to collect the payment information.

• You will then receive a call from your personal Mortgage Consultant to go over your loan options and “lock” in your interest rate.

• You and your Realtor will receive an e-mail stating that your loan has been sent to the Underwriting Department.

• You will then be able to track the progress of your loan online 24/7!

• The file is underwritten anywhere from 24-48 hours after submission and you will receive a “Conditional Loan Approval.”

• You may need to provide your personal loan processor with some additional documentation.

• Once the Conditional Loan Approval is received, you must secure a Homeowner’s Insurance policy for the new property and pay one year’s premium in full.

• When your personal Loan Processor collects all the remaining documentation along with the Homeowner’s Insurance policy binder and “paid in full” receipt, the file will be sent back to the Underwriting Department.

• You will receive a phone call from your personal Mortgage Consultant 24-48 hours later letting you know that your loan is “clear to close” and the closing date/time may be scheduled.

• Anywhere from 24-48 hours later you will receive an approved HUD-1 Settlement Statement from your personal Mortgage Consultant; this document will have all of the final closing figures for your mortgage.

• CLOSING DAY! Make sure to bring a cashier’s check (unless the funds are to be wired) as well as your photo ID and enjoy your new home!

FHA plans to cut maximum “seller concessions” from 6% of the sales price to 3%. Seller concessions typically can generally be applied to reoccuring and non-reoccuring closing costs, i.e loan origination, transfer taxes, appraisals, inspections, closing and escrow costs among others — though not the down payment.

When FHA officials comment on the current 6% maximum “exposes the FHA to excess risk by creating incentives to inflate appraised value.”  This is an undeniable fact.  Basically, they are insuring loans with “inflated values”.  A home is worth as much as someone is willing to pay for it.

Jose Fleming of Five Star Realty Group in Orlando, FL – “The reduction of the maximum seller contribution would be detrimental to this already sensitive real estate market.  I can understand that FHA needs to hedge their bets so to speak, but the overall effect this will have on the housing market is inevitable.”

They are looking into the possibility of a sliding scale approach.  This, to me, seems more realistic because the people that will suffer most with these changes would be those buying lower priced homes.  The reasoning behind this is that the smaller the loan amount, typically the higher the percentage the closing costs will be.  While it is realistic to expect a 3% seller concession to cover the costs of a $300,000 home purchase, it would barely cover junk fees at the local bank on a $60,000 property.

Our solution here at RH Funding Co. Orlando is to waive the fees altogether, thereby decreasing the amount of money paid out of pocket by a homebuyer.  We have special no bank closing cost loan programs geared towards the changing market.  Visit us online today at www.LendingFL.com and find out more!

This Week; the sovereign debt concerns in Europe will continue to be the focus; the euro currency is collapsing and we expect more of it this week. A weakening euro, or stated another way, the strengthening dollar, reduces the US export trade as US goods become more costly. Should be another week of high interday and intraday volatility in the US stock and bond markets. Given the uncertainty and fears swirling around Greece and other mid-major European economies, the lack of inflation pressures, investors should look to long term treasuries. The real rate of return when inflation is subtracted is still about 4.00% for a 30 yr treasury. Looking for the stock market to open better on Monday but the rest of the week is questionable. Economic data this week has a few data points and the minutes from the 4/28-29 FOMC meeting on Wednesday. In the present environment most of the US market directions will be led by what the European markets do and what comes from the various ECB and EU officials. Watch the euro currency; as it falls it has a negative implication for the US equity markets and adds some support to treasuries on safety moves. Market volatility will likely remain high.

Bankruptcy becomes a viable option for someone who is “upside down” in terms of cash flow. In other words, when a person has more money going out each month than coming in, bankruptcy should be considered if no reversal of this negative cash flow is within sight. The longer someone waits to explore the various options available, the more serious his or her situation may become.

One of the worst things people can do in this situation is to borrow more money to try and pay off their debts. On paper, this is clearly an unwise financial decision. In the real world, however, it is very common for individuals to pursue this strategy in an attempt to buy time and hold off on filing for bankruptcy. On the surface, this is certainly a noble notion; however it can often compound the problem and serves only to delay the inevitable.

For many homeowners in the midst of this upside down cash flow, speaking to a qualified mortgage professional is a much better option. An experienced loan officer can objectively look at your finances and help you determine if restructuring your mortgage would not only help, but possibly even alleviate any need for bankruptcy.

If bankruptcy is the only option, seek out a reputable bankruptcy attorney and credit counselor. A qualified mortgage specialist can provide references for you as well, as he or she works with these professionals on a regular basis. Reliable references are essential in this case because experienced professionals greatly increase the odds of a successful bankruptcy experience. It’s that simple.

When filing for bankruptcy, be completely honest and accurate regarding every aspect of your financial situation. This includes any changes to your income which may occur throughout the process. Bankruptcy is a federal procedure, adjudicated by real judges, and scrutinized by representatives who coordinate with the Department of Justice, the FBI, and the IRS.

Here are some additional steps you can take to make the bankruptcy process as painless as possible:

• Save all paperwork regarding your bankruptcy, and keep it organized. This will prove beneficial after your bankruptcy as you now have all of the pertinent information in one place. Also, be sure to write down your discharge date. It’s surprising how many people forget to do this.
• Establish a household budget. This can be accomplished in many ways, but there are several inexpensive computer programs available which do an excellent job.
• Throughout the bankruptcy, do your best to not only live below your means, but to save as much cash as possible. You never know what you may need it for once the process is completed.
• Be prepared for a barrage of junk mail. There will be sharks on the loose who are hoping to capitalize on your need for credit.

Tips for Rebuilding Credit:

• If you must buy a car, focus on transportation as opposed to style. Buy an inexpensive, used car, and try to get a loan for it. It’s a good idea to figure out what your budget allows in terms of a dollar amount first. This means obtaining financing prior to looking for a car.
• Get a secured credit card. Secured credit cards allow for the cardholder to deposit a said amount of money into an account, thus establishing the spending limit of the card. Missed payments result in deductions from the account. Some of these cards will reward responsible borrowers by upping the limit without an additional deposit. Some will even convert the account into a traditional credit card. (Be wary of offers of “easy credit” or any card which asks you to call a 900 number. You will be charged for the call.)
• Meet with a credit repair specialist. Not only can they help you clean up the damage to your credit report, they can advise you on specific ways to rebuild the credit you lost as well.

While it does take time, there is definitely life (and credit) after bankruptcy. Some mortgage lenders will even lend to you within a year or so after a bankruptcy. If you’re in serious financial trouble, the trick is to get the help and advice you need from professionals you trust.

For sales occurring after November 6, 2009, the Act establishes income limits of $125,000 for single taxpayers and $225,000 for married couples filing joint returns.

The income limits for sales occurring on or after January 1, 2009 and on or before November 6, 2009, are $75,000 for single taxpayers and $150,000 for married taxpayers filing joint returns.