My New Blog

We have all seen the demise of the banking world as it pertains to mortgage lending throughout the entire U.S. Not too long ago borrowers could “state” their income, have zero down payment, and could buy way more than they could afford. It took a while, but that “alternate lending” style and the push for more mortgages, caught up to us all. Now borrowers wonder how will I ever get a new mortgage with all the new restrictions that came about in the recent years. Well, there is hope.

Pride myself in keeping up with current market conditions and mortgage industry guidelines. I will analyze your current mortgage, housing values in your area, along with the cost of reference ensuring it will save you money to do so.

If you have not considered refinancing or have considered refinancing but haven’t chosen to pull the trigger I would say “Don’t hesitate”. These are the lowest rates will ever be and if you miss this opportunity you could be losing hundred, even thousands of dollars. Borrowers who are refinancing tend to be those who need it least.

Good news for Michigan!  Once again we are reporting a decrease in unemployment and an increase in jobs - at least for the West side of the state.  While it's true Michigan manufacturing is on the decline, industries such as service and health care are on the rise.  This is especially true for the greater Grand Rapids area.  We have seen a rise in for the past two quarters in home sales.  That's the good news.  The great news is it is still a buyers market!  If you have been looking for a home and want to do some research on your own before contacting a realtor check out the Home Scouting Report.  It brings your search to you!

While we have experienced the fall out from risked based mortgage lending, survived the scare of the foreclosure market, seen home sales on the rise, we are still experiencing changes in the conforming mortgage loan market.  Here are a few items to keep in mind when deciding to purchase your dream home:

Mortgage rates are not defined by the Prime Lending Rate.  Mortgage rates are driven by the 10 year bond market.  If stock rates drop, investors usually put their monies into a more secured market such as bonds.  This will increase the bond interest rate and consequently increase mortgage rates.  If you see a rise in the stock market, investors will pull their funds from the bond market causing interest rates to drop and therefore, mortgage rates to also drop. 

Rural development allows repair funds to be escrowed.  However, the new rule is not only 1 1/2 times the highest of two bids.  The borrower must now escrow at least the 1/2 while the seller can still escrow (or conceed from the proceeds) the 1.  

FHA is not what it used to be!!  FHA, a government backed mortgage loan, has developed their program to be consistent with conforming mortgage loans.  A borrower must have 3% down payment but can receive this as a down payment assitance from the seller.  Rates are competitive with standard industry rates.  IT'S A GREAT LOAN FOR ANY BUYER! (most lenders require a minimum 580 credit score - but ask for details!!!!)

Conforming mortgage loans are now requiring in most cases a 5% down payment.

Just a few tid bits to keep you in touch with what is happening in the mortgage industry.  Please feel free to email or call me with any questions.  My hope and desire is to educate you in making the best possible decision for your financial future!   

Spring 2008 has finally arrived!  It's a great time to be prequalified for your mortgage dream home!  For me, personally, it's not just a mortgage it's a road map to your future.  I take my clients financial well being very seriously.

My education from working years in a financial insititution approving consumer loans, training in budget counseling, credit counseling, and financial planning together with my desire to help borrowers make the best financial decisions has helped to create a "mother" instinct when working with you, my borrowers.  I take a personal vested interest in making sure you understand the mortgage process from start to finish. 

Today's market, despite what the media may say, is active and growing steadily.  Yes, there may be foreclosures as a result of borrowers not being well informed in their decision processing or taking on larger debt than they should have, but rest assured the mortgage market is climbing.  With mortgage rates still holding steady in the 6% range it is still a great time to look for that perfect dream home you have been waiting for.  (12 year average being around 9%).  It's important to understand that mortgage rates are not driven by the prime lending rate and change on a daily basis - sometimes hourly!  Having a trust mortgage professional such as myself to watch the market for you is essential. 

If you have any questions or want to crunch numbers, please do not hesitate to contact me.  I am more than happy to assist you through the entire mortgage process - and that begins at understanding.

Moving can be a daunting task, and is perhaps the most time-consuming aspect of purchasing a new home. These tips will help your move go as smoothly as possible.

Packing

1.) Give yourself enough time
You should start packing at least three to four weeks before your scheduled move date (longer if you have an above average amount of possessions to move - and don't we all!)  Pinnacle Lending can supply you with color coordinated packing labels to help insure all boxes are labeled properly and make it easier for all those helpers to put the boxes in the right rooms at the new house!

2.) Pack one room a day
Choose a single room to pack first, and pack it slowly and carefully. Do not move on to another room until the first room is finished.

3.) Put all key items in places where they are easily accessible
It’s extremely important to pack all of your necessities (like toiletries, TV remotes, medications, and anything else you’ll want to find quickly) that makes their retrieval as simple as possible. You may even want to consider packing these types of items in their own boxes.