Yet, how can we blame them? After the mortgage crisis only a few years back it became clear that new measures needed to be taken. And, I can assure you, they are satisfactory. From 2007 to 2009, the percent of resold loans went down from 22% to 2%. These numbers have helped secure the current state of our national mortgage rates, but they have also posed a stressful consequence upon potential home mortgage consumers. While we may temporarily be out of the recession-causing threat of our nation’s mortgage dilemma, it has never been more difficult to successfully secure a loan.

The difficulty, as stated above, doesn’t come from obtaining mortgage approval, but instead through the intense, endless amount of documentation which must be processed and evaluated by a careful, experienced team of lenders. However, this process does not have to be as painful for the prepared. In essence, be ready to give them every last aspect and detail of your financial life: every dollar in your checkings, savings, investments, and retirement accounts must be accounted for, as well as every other potential source of income (such as gifts, grants, loans, etc.). And be prepared to cough up the paperwork. Give them everything they ask for. If you don’t, they will only call back asking for more. And when they do, they might be aggravated or stressed, which might heighten your own frustration and so on. All in all, for the smoothest, simplest transitions, give them what is necessary.

It all begins, of course, with the pre-approval process. This will typically consist of a phone call carried out like a kind of telephone interview. There will be plenty of critical questions which you will have to answer on-the-spot. Preparation is key in this stage, and honesty is just as crucial. Be ready to disclose everything. They will ask questions from what you do for a living to whether you’ve owned a house before (if you have, prepare the numbers). You will want to be specific here, and don’t hold anything back.

It might be easy enough to fraud your way through the telephone interview, but under the new measurements required for loan security, it will all come down to the evidence. You will have to prove everything that you say in the phone interview, and if numbers don’t add up appropriately you may find it hard to finish out your approval. But this isn’t where most people find themselves struggling. The true test comes with the processing of documentation. This seemingly endless ritual will undoubtedly become more mundane and unnecessary than you might have ever imagined. But the key is to not get frustrated. Your mortgage lenders are going to ask for every hard-copy financial statement you’ve seen, and possibly then some. Just be ready to do the work.

Eventually, you might begin wondering who goes over all of this paperwork, and how in the world do they manage to look over such quantities of documentation for every loan applicant! But the fact is, they do. They have to. Especially now, in the years immediately following our huge mortgage crisis and financial recession, mortgage lenders are not looking to take the easy way out. Particularly smaller mortgage originators can’t afford the loss, so no one is going to risk making a careless over look or letting a bad loan slip through the ranks. Hence, the rigorous underwriting guidelines and procedures you are required to abide by.

What the originating lender is looking to do is create a loan file that is perfectly consistent with the underwriting guidelines and procedures set aside by their company. The intricate complexity of these guidelines are so severe that, by the end, every aspect of your financial life will have been corroborated and double checked (sometimes even triple) to meet the standards. So, you can imagine if when you send in a summary of your bank-statement instead of all seven pages, they will call you and ask for the whole thing. Avoid the back-and-forth banter that ultimately winds everybody up and raises stress and tension: have your paperwork ready and prepared, and be willing to provide it.

The relieving news out of all of this is that if you are applying for a loan reasonable for your income and state of living and you manage to provide all the paperwork and documentation required in full to your mortgage originators, there is little stopping you from securing your loan. Banks aren’t looking to make obtaining a mortgage for a house entirely impossible: they are only taking the necessary procedures to secure themselves against bad loans and substandard underwriting procedures. In the end this will be a benefit to everyone, but for the time being it is rather a frustrating complication for all those who hoped securing a mortgage would require little busy-work.

Susan Hilton

PS -  Susan Hilton is Bryan College Station, Texas’ real estate specialist in foreclosure sales and real estate agent career building so if you need help – CALL!  979-219-3970

Here are a few suggestions that can be of great help in achieving a successful appeal.

(1) Be punctual and prepared for the hearing.

Before attending your scheduled hearing, check the property information on your tax bill, specifically, the address, lot size, and number of rooms. Take notice of the appraised value of the property. Have with you every information that you might use in your protest.

(2) Adhere to the facts and avoid emotional pleas.

The ARB doesn’t have a control  over the operations  or budget of the appraisal district, its tax rates, or local politics, so it is not advisable to address such topics during  the presentation for it will just waste your time and will not likely help your case.

(3) Study the hearing procedure of ARB.

As soon as you receive the hearing procedures of ARB, take time to  familiarize yourself with the procedures and be prepared to follow them.

(4) Present your  information in a very simple and well-organized manner.

You together with the appraisal district staff  will be exchanging evidence at the hearing. Photographs as well as other documents could be of great help. It is best to take an appropriate number of copies to ensure that each ARB member and  the appraisal district representative  receive one.

Prepare all  the collected documentation. Organize it in a manner that allows you to present the most important details first. The time given to you to present your case likely will likely be limited.

As soon as the ARB is done with your protest,  a written order will be delivered to you by certified mail. Now, in case you are not satisfied with the ARB’s findings, you have the right to appeal the decision. You may appeal to the state district court in the county in which your property  is located, depending on the facts and type of property, and the appeal must be filed no later than 60 days after receiving the final ARB order.

Susan Hilton

Property taxes are determined by a percentage of your property value. Majority of people pay their Brazos County property taxes annually without having a second thought as to how the amount due was decided. And most people pay it through their mortgage company in their monthly mortgage payments.  Your property value is decided through the local tax assessor’s office so GET INVOLVED!

When you find yourself dissatisfied with the appraised value assigned to your property, you can make an appeal to your appraisal district regarding the remedies available to you. It is the task of the Texas Comptroller of Public Accounts to publish an explanation of the remedies available to taxpayers and procedures that must be followed in seeking remedial action. The Comptroller should also include guidance on preparing and presenting a protest.

Futhermore, the legislature furnishes copies of this document and are made readily available to taxpayers free of charge. The chief appraiser of an appraisal district may give a copy of the Notice of Appraised Value mailed to property owners explaining the time and procedures used in protesting the value of their property. The chief appraiser must provide another copy to property owners that initiate protests.

In the event that the appraisal district appraises your property at a higher amount in comparison to the prior year, state law requires the appraisal district to send a notice by May 1, or by April 1 if your property is a residential homestead. The notice of protest is  said to be sufficient if this identifies (1) the protesting individual claiming an ownership interest in the property, (2) the property that is the subject of the protest, and (3) dissatisfaction with the decision of the appraisal district.

The value of your property could be protested in accordance with the following:

• your property is unequally appraised;

• the appraisal district placed a value that is too high value on your property;

• the appraisal district denied a special appraisal, for instance, open-space land, or your exemption application was incorrectly denied;

• the required notice was not presented to you by the appraisal district

In the event that the appraiser does not reduce your taxes to what you feel is fair, you can make an appeal regarding the decision to the next level. It’s very important, however, that you preserve your right to protest to the ARB by filing your Notice of Protest before the deadline, even though you expect to resolve your concerns at the informal meeting with the appraisal district. The ARB is an independent, impartial group of citizens authorized to resolve disputes between taxpayers and the appraisal district. Although, in most counties, the ARB is appointed by the appraisal district board of directors, it is not controlled by the appraisal district.

You should file your Notice of Protest with the ARB no later than 30 days after the appraisal district mailed the Notice of Appraised Value. You may request an evening or weekend hearing, depending on your preference. The ARB will notify you at least 15 days in advance of the date, time, and place of your hearing.

Bringing a protest before the ARB is often a formal process. Start and end dates vary depending on the  appraisal district. At least 14 days before your protest hearing, the appraisal district will mail a copy of this pamphlet, a copy of the ARB procedures, and a statement that you might inspect and obtain a copy of the data, schedules, formulas, and any other information the chief appraiser plans to introduce upon your hearing.

Susan Hilton

Qualified Buyers

• Owner Occupants, purchasing their primary residence
• Public Entities = City, county, or municipality buyer (ex. City of College Station)
• Other Entities using Public Funds = Non-profit or for-profit partner organizations (ex. Habitat for Humanity)

How do you know if the foreclosure you are interested in qualifies for the First Look Program? Well of course you can call me, (I have a lot of experience with foreclosures in Bryan College Station!) but you can also go online to HomePath.com. This is the primary website showing properties within the First Look Marketing Period. The site also has a countdown clock showing how many more days are left in the marketing period for Qualified Buyers.

Many of these homes also qualify for Homepath financing. Homepath financing is a little better than most financing options.

HomePath® Mortgage Financing benefits include -

• Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
• You may qualify even if your credit is less than perfect
• Available to both owner occupiers and investors
• Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
• No mortgage insurance*
• No appraisal fees

If you find a foreclosure that needs a little TLC, it might qualify for the HomePath® Renovation Mortgage Financing.  This special financing is available only on homes that will be your primary residence and the loan offers -

• Financing to fund both your purchase and light renovation
• Low down payment and flexible mortgage terms (fixed-rate or adjustable-rate)
• Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit, state or local government, or employer
• No mortgage insurance*

So, when you are ready to purchase a home and possibly even a foreclosure, call me and I’ll put you in touch with a lender that can help you find the best loan.

Susan Hilton

Century 21 Beal, Inc.

979-764-2100

What is a Credit Score?

Who decides what your Credit Score is?

How does the score affect YOU with your Home Mortgage?

How do you improve your Credit Score?

Who do You ask for help with your Credit Score if you are wanting to purchase real estate in Bryan College Station?

What is a Credit Score?

Your Credit Score is a number, up to 850 that lenders, insurance companies, banks and employers use to determine your “worthiness”, willingness to pay, past stability and ability to repay a loan. Your Credit Score is one of the most important things in determining whether you are eligible to borrow money to purchase a home as well as your interest rate.  Remember the higher your score, the lower the risk the lender believes they have, therefore the lower your interest rate will probably be. Your Credit Score is also called your FICO score after Fair Isaac & Company.

Who decides what your Credit Score is?

Really the one who determines your Credit Score is YOU.  Now I know you don’t get to write in your own score but what you do affects your score.  Your payment history on the money you borrow is a huge factor in your score. The biggest pieces of your Credit Score are….

• YOUR payment record – Your payment history is the biggest piece of your credit score. Do you pay your credit cards on time EVERY TIME? Do you pay your car payment on time, EVERY month?  What about your student loans?  Have you ever filed bankruptcy?  Have you gone to the doctor or hospital and then not paid the bill?  All these things can have an effect on your Credit Score.  Lenders want to know you pay your bills on time EVERY TIME.  Yes, it seems like the people who don’t need the money are the ones who can get the loans but banks are not in a charity business. They want to make sure that if they loan you money that they can get it back on time with no hassle.
• YOUR credit history – Are you just starting with credit? Do you have any credit cards now? FEW want to be the first one to take the risk that you won’t pay them back. But, how do you establish credit if no one will give you the chance?  Start by borrowing a little money from your bank against money you have in savings and PAY IT BACK ON TIME EVERY MONTH!  After a year or so of paying back the money on time you will have established credit. Most home lenders require you to have several examples of you paying back money your borrowed. You can also use the payments each month for your utilities and your phone to help show you are trust worthy – just be sure to pay these each month!
• YOUR current debt – How much do you currently owe? Do you have credit card debt? Do you have student loans? Do you owe back child support? Do you have a car loan? Have you maxed out your credit cards? How much you owe will affect your score but don’t run out and pay off loans if you are getting ready to purchase a home. Talk with a loan officer who knows about credit BEFORE you use all your available cash paying off loans.
• YOUR credit applications – Do you apply for credit at the store every time they offer? Have you applied for a new Mastercard or Visa because an application came in the mail? Each time you apply for more credit your credit is “Run” and this can reduce your Credit Score. Remember when you are getting ready to borrow money to purchase a home, you don’t want to look like you are out borrowing money or that you “Need It”.
• YOUR current credit companies – Which credit card companies have you applied to? Which credit cards do you have? Some affect your scores more than others. Do you only have car loans or ATM cards? Who would ever think that one credit card company is better or worse than another but they are!

How Much Does Your Credit Score Affect You With Your Home Loan?

It affects it a great deal. Of course the rules and guidelines change all the time regarding what lenders require for Credit Scores but in 2010 your credit score needs to be above 620 to be considered for a Fannie Mae (FNMA) loan and 660 to be considered for an FHA loan. These two loan types will give you the best possible interest rate.

Who do You ask for help with your Credit Score if you are wanting to purchase real estate in Bryan College Station?

Of course I suggest that you contact ME!  I will direct you to one of the lenders we work with on a regular basis helping our Clients make sure they get the best possible loan conditions possible. Remember a 1% difference on a loan can make a big difference in your monthly payment.

Susan Hilton

CENTURY 21 Beal, Inc.

979-764-2100

Yes – someone saw it coming. The New York Times actually reported it coming back on September 30th in 1999. How many years ago is that? Maybe it was while Clinton was President, not George Bush….

In 1999 Steven Holmes from the New York Times wrote that Fannie Mae was under extreme pressure from the Clinton Administration to expand mortgage loans to low and moderate income people. In doing this “Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times…. but may run into trouble in an exonomic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980′s”. 

Do you remember the 80′s when WE bailed out the savings and loan industry? Often times we forget our past, our history and with that we repeat it over and over. Bailout – something new? NO WAY! We do it over and over and over. As much as I disliked my history courses in school and as much as my husband will razz me over saying this….

Maybe we should pay more attention to our past so we do not continue to repeat it but instead make better choices for our future.

Susan Hilton – Realtor & Sales Trainer for Century 21 Beal

Want to Search the Bryan/College Station Real Estate MLS? CLICK HERE!!!

View Susan Hilton’s profile

Debbie Davis

Not only does Debbie host a show on Sunday afternoons in Bryan College Station, Debbie has a show each morning in Dallas!

Debbie continues to expand her market with straight talk about money, politics, real estate and life.  Her conservative politics, belief in personal responsibility and humor makes her show one listeners tune into over and over.

Debbie Davis continues to take loan applications and run Dexter Mortgage while taking care of her two beautiful children, husband, and 2 radio shows. How can she do it? Who knows but she does! And she does it well!

So what are your thoughts about Fishman? Remember WAMU? Alan Fishman worked for WAMU 17 days as the chief executive officer. After working those HARD 17 days WAMU went under and was taken over by the FDIC.  Now, after working 17 days, do you know how much he is to get?

According to Fox News -

According to filings with the Securities and Exchange Commission, WaMu threw a $7.5 million bonus at Fishman when it hired him on Sept. 8, and guaranteed him an immediate cash severence of $11.6 million — both of which he gets to keep.

I WANT THAT JOB!!! I want to get a $7.5 million dollar bonus, work 17 days and then get a severence package of $11.6 million!!!  Now I don’t blame Fishman for taking it but who are the insane people who authorized this? Was it the board of directors? Maybe they should pay this (and the stockholders who lost EVERYTHING) out of their pockets.

So, now that Fishman has his millions, WAMU stockholders have nothing, our rebate checks are returned and we now are all responsible for a $750,000,000,000 debt… any ideas how we are going to pay this back? I don’t know about you but I don’t think I can pay any more taxes.  Wonder how this is going to affect College Station real estate…

Fannie Mae & Freddie Mac (HUGE loan investor groups) are making underwriting changes and private mortgage insurers are adding significant new restrictions. What does this mean to YOU? It means that getting a loan on a condominium (or refinancing one) may be very difficult in the coming months.

“Starting May 1, for example, AIG United Guaranty, a major private mortgage insurer, no longer will write coverage on condominiums in hundreds of ZIP Codes across the country that it designates as having “declining” market conditions, including many areas of Southern California. The ban applies regardless of applicants’ credit scores, assets or equity stakes. Even in the healthiest markets, United Guaranty will require a down payment of at least 10% and will reject applications on units in condo projects where more than 30% of the owners are investors.”

I still want to see the map that lenders seem to be using that decides which area is declining and which is not. The Bryan College Station Real Estate Market is NOT a declining oneyet we have had several lenders over the last few months decline loans because of the “MARKET” not the buyers!

Of course putting more money down (20%) will make it easier to get financing on a condominium but there are still other rules coming that could make it almost impossible. ” Under Fannie Mae’s changes, most of the due-diligence research on condo projects’ key characteristics — their legal documentation, the adequacy of association operating budgets, the percentage of unit owners who are late on association-fee payments, the percentage of space allocated to commercial use and the percentage of units owned by investors — must now be performed upfront by loan officers. Not only is this time-consuming and costly, but under the new procedures, Fannie Mae also expects the lender to warrant the accuracy of its research. Some condo legal documents run to hundreds of pages, yet lenders are supposed to take legal and financial responsibility for their accuracy.”

How many loan officers do you know that are going to want to read all the documentation, make sure the condominium complex has at least 10% of its current operating budget reserved for capital expenditures and deferred maintenance, knows what percentage of owners are paying their association fees late AND are willing to warrant the accuracy of the research? Talk about being more labor and paper intensive for the lender!

So now what? Work with a local lender who knows the market and knows who to contact to get the information you need BEFORE the buyer goes out and spends a lot of money on inspections and appraisal. Remember USE A LOCAL BRYAN COLLEGE STATION LENDER!!!

Closing costs are simply this: the costs of borrowing money, establishing the loan, purchasing title insurance, establishing escrow charges, conducting pest inspections and preparing the necessary documents to finalize the sale. These costs may be significant and are easily overlooked by a first time buyer.

1. The Costs of Borrowing Money. This includes what some lenders call “discount points,” a one-time charge to adjust the yield on the loan to what market conditions demand. Each point equals 1% of the mortgage amount. Two and one-half points on a $100,000 mortgage would cost $2,500.
2. The Costs of Establishing a Loan. These might include the loan origination fee, and cost of credit reports. Premiums for hazard and mortgage insurance are usually paid at closing. Also, pre-paid interest will be collected for the period between closing and the end of the purchase month.
3. The Costs of Document Preparation. Title insurance costs pay for the search of public records to determine if the property you want to purchase is free from any other ownership or liens. Recording and transfer fees cover the legal recording of the deed with the proper governmental agencies as well as the transfer of taxes.

Susan Hilton – Realtor & Sales Trainer for Century 21 Beal

Want to Search the Bryan/College Station MLS? CLICK HERE!!!

View Susan Hilton’s profile