CREDIT DISPUTES

How many of us have ever gotten a credit report online?  Have you ever seen something on your credit report that you didn’t like and, just because you wanted to see what happens, you hit the ‘Dispute’ button?  Well, the world is changing and that small button can have a BIG impact on an applicant for a mortgage.  Disputed accounts on a credit report can signify a few things.  One may be a reduction of a negative credit item’s weight on a FICO score or it could mean that a borrower is trying to mask a real problem by portraying it as a mistake. Either way, Fannie Mae and HUD don’t like credit disputes.

In the past few months, it has been communicated that any credit report with a dispute listed must have the dispute removed and the borrower re-scored to make sure that their FICO score is an accurate reflection of their situation.

Here are some of the challenges:

a.  A borrower willing to remove the dispute(s)

b.  A creditor that is willing to remove the dispute and report it to the credit agencies and

c.  That creditor must be provide proof of the dispute being removed

According to a top loan originator with Innovative Mortgage Concepts, Jason Klaskin, this process can take 30 days or more per account.  “Imagine if you have a borrower approved for a loan today, they put in an offer and then everything is put on hold for 30+ days because credit was pulled just prior to closing and a newly disputed account pops up on their credit report.”

What can you do?

Again, working with a lender that knows about these changes and their potential impact – and proactively manages their applications and approvals- can save you headaches with your transactions.  It is also important for you to hold off on any disputes until after the loan process is complete.  If you can get approved with your current credit situation then there is no need to dispute anything while the loan is in process.

As one of Florida’s Top Mortgage Brokers, Chris actively serves the Miami and Miami Beach real estate markets.  For mortgage advice, contact Chris directly via email Chris [at] MortgageChiliBlog [dot] com or by calling 800.227.9944

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For quite some time, the only way to borrow more than 80% on a Miami Real estate purchase was to go FHA.  Now, FHA has restrictions that have made some home buyers frustrated and unable to enter the market.  Well

- good news.

There are a  few lenders [shocker - of which we are one] that now have 95% conventional financing available to Miami home loan seekers.  These loans are not ‘right’ for everyone, however, because it is credit score based.  However, if you have demonstrated fiscal responsibility and have a score above 720 – this loan very well could be the magic bullet you are looking for.

As one of Florida’s Top Mortgage Brokers, Chris actively serves the Miami and Miami Beach real estate markets.  For mortgage advice, contact Chris directly via email Chris [at] MortgageChiliBlog [dot] com or by calling 321-696-9696

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I know, I know – you have heard it, so have I.  In fact it seems that I – along with seekers of Miami homes for sale - am becoming almost immune to the statement, “Historically Low Rates”.  This may be the current financial version of The Boy Who Cried Wolf. 

Well, if you remember the story – the boy eventually DID encounter the wolf but no one listened… our parallel continues because low Miami home loan rates are lower than they have been since the early 1970s and it is having a modest blip on the radar of home buyers entering the market.  Those that followthe croud will certainly miss out, but those that are prudent will take advantage of this anomly of market conditions are surely benefit for the next 30 years.

Freddie Mac – the ONLY place where you can get reliable rate information online, quoted last week that rates could be found below 4.70% with .7 in points.  TRANSLATION: Miami home for sale are more affordable than most people in the market have ever experienced.  Ever.  When you combine the fact that real estate prices are back to where they were close to 10 years ago, and rates are close to where they were  40 years ago, market conditions demand action. 

Don’t take my word for it – check out Freddie Mac for yourself regarding the rates, and check with your Miami Realtor to get the scoop on where prices are relative to recent history.

As one of Florida’s Top Mortgage Brokers, I actively serve the Miami and Miami Beach real estate markets.  For mortgage advice, contact me directly via email Chris [at] MortgageChiliBlog [dot] com or by calling 407 377 0500 x 210

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There are many home buyers that feel they are in a squeeze play right about now.  The previous tax credit had t0 deadlines associated with it that allowed Miami First Time Home Buyers to realize the $8000 Tax Credit.

• Go under contract on a home by April 30, 2010
• Close on that home purchase by June 30, 2010

With those guidelines in place, many home buyers are finding themselves coming up against the wire.  They went under contract by April 30th, but – for whatever reason… likely a short sale home – they find themselves with no control as to whether they close on time.  This puts many of them in a serious predicament since they began buying the home knowing the $8000 was coming their way.

Well – it still may be.  Last week several Senators offered a bill amendment that would allow them to close anytime before September 30, 2010.  Now, this does not open the door to new home buyers, but allows the ones “in process” to likely benefit from the tax credit that was offered to them.

As one of Florida’s Top Mortgage Brokers, Chris actively serves the Miami and Miami Beach real estate markets.  For mortgage advice, contact Chris directly via email Chris [at] MortgageChiliBlog [dot] com or by calling 407 377 0500 x 210

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LOW MIAMI MORTGAGE RATE UPDATE:

Okay, nothing is more fun for me than being right, but ironically, nothing is more fun for Miamism readers as when I am wrong.  I am glad we can laugh about that together!

How do you capitalize on my “egg in the face”?  Well, stick it to the bank – get a Miami Beach Home with lower rates than we even thought was possible.

Why?  Well, international markets continue to astound me as their effects on Miami Home Loan Interest Rates.  Rates are experiencing all time lows because of lack of harmony and peace in Spain, Greece and North Korea. No, this is not salesy jargon – rates are really that low.  I am seeing many refinances and Miami home purchase loans in the mid 4.00% range.  If you missed the refinance boom of late 2009 – you are super-lucky.

If you really want some amazing tips on getting low Miami interest rates check out NBC’s 3-minute video answering the question “Should I refinance my mortgage?”  It also covers things like:

1.)  ”Why were mortgage experts wrong on examining the rates moving higher?”

2.)  ”How much money can I save with a  lower interest rate?”

3.)  ” With rates this low, should I be thinking about buying a bigger house”?

Don’t take my word for it – check out the video.  Make sure to take note, however, at how quickly this trend could reverse.  Unless you feel THAT lucky, of course.  If you are serious about refinancing then talk to your loan officer as early as possible.

As one of Florida’s Top Mortgage Brokers, Chris actively serves the Miami and Miami Beach real estate markets.  For mortgage advice, contact Chris directly via email Chris [at] MortgageChiliBlog [dot] com or by calling 407 377 0500 x 210

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Long has been the time that it has appeared interest rates would be rising, and I gotta tell you, the longer they are this low – the longer I am surprised.  What is most interesting is that it does not seem to be due to one single cause, but a chain of events, that when all placed end to end, seem to have the effect of a single event. Lucky us.

We have all heard the expression, “never look a gift horse in the mouth“, and maybe I should be a bit more willing to accept the miracle without asking why it exists… but I am just not wired that way.  I entered the mortgage business because I am mathematically minded and when the numbers don’t seem to add up, it makes my scratch  my head and dig in to understand why.

IMHO - Miami mortgage rates are low because of the turmoil going on in Europe.  Sure, there are other reasons, but it seems to me that the main reason right now IS Europe.  When there is turmoil, investors look for safe places to put their money with the best return.  From an investor standpoint, are mortgage backed securities a safe place to put money?  That is debatable, but the question is not “are they safe” but, “what is their relative safety compared to other investment alternatives.”  In other words… mortgage backed securities might be the most appetizing item on an un-appetizing menu.  Not saying much – I know but hey – didn’t we already talk about looking a gift horse in the mouth?

The Bottom Line:  Rates still remain low and amazingly affordable for Miami Beach Real Estate.  Combine that with rolled-back values and the loosening [yes I said it - loosening] of underwriting guidelines and we find ourselves int he perfect storm for home affordability.  Woo Hoo!

As one of Florida’s Top Mortgage Brokers, Chris actively serves the Miami and Miami Beach real estate markets.  For mortgage advice, contact Chris directly via email Chris [at] Miamism [dot] com or by calling 407 377 0500 x 210

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As we have discussed in previous posts, the FED meets about 8 times per year of which the most recent was last week.  The market fully expected rates to remain unchanged, and with a vote of 9-1 - they did.  The Fed Funds Rate is currently in a target range of 0.00-0.25%. 

Wouldn’t it be cool if we all could borrow money at that rate?

Anyway, too many people confuse what the FED does with what happens to long-term mortgage rates.  The FED does not influence Miami mortgage rates through its policies, but more by what it says in its “pulse” on the market.

If you recall from a previous post we talked about what rates may likely do after the FED stopped buying mortgage backed securities… and as expected, they have gone up a bit.  With that in mind it is important to get insight from a trusted lender as to whether today may be the right time to be buying.  With the future of rates being as unstable as ever – buying sooner rather than later may be the best way to secure the absolute lowest payment on a Miami Beach Home.

To be sure, it’s a difficult time to be shopping for Miami real estate – not something that you should do without a rock-solid Realtor that knows your area.

Further complicating matters is Greece’s recent debt downgrade to junk status. I know, I know, “what does Greece have to do with my mortgage?”  Well – we are in a global economy and as money flows from investment to investment on an institutional level, you would be surprised what influences mortgage rates!  Back to Greece - a small contagion fear is growing around the world and as a result the “flight-to-quality” behavior of investors has increased.  In other words – mortgage backed securities have looked attractive and have pressured rates down slightly…but… they could reverse higher at any moment.

All that to say – if you’re actively shopping for Miami real estate, it may be prudent to lock your rate when you find the perfect Miami home.

Rates will go down.  rates will go up – but not necessarily in that order. I digress.   Just know – there’s very little room for rates to fall but there is a lot of room for them to rise.

Call your loan officer to lock your rate.

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So, I was getting ready to post the Part II of III about the Future of Miami Mortgage Rates and two things came to mind.

• The only people that care about [What I alluded to in Part I] how the FED influences long-term mortgage rates are… well… fellow mortgage people and economics professors.
• With the cliff-hanger I left in Part I about the time bomb coming March 31 – I thought it best to let those know that are reading this as fence-sitting Miami Beach home buyers as much time as possible to digest the info and decide what is the best Miami Beach home buying strategy for them.

Okay, so what is The Future of Miami Mortgage Rates Part III, Chris!?  Well – I am glad you asked.  The FED has stated and reiterated in their most recent FOMC minutes that they intend to stop purchasing Mortgage Backed Securities [MBS] at the end of March.  This is important because a primary reason that we enjoy low Miami Mortgage Rates today is because the FED is currently buying those MBSs.  See, no one else is a large consumer of those bonds at this time and when countries [mainly] have a limited appetite for our bonds, we must entice those would-be-investors with, you guessed it, higher rates of return.

Translated – Higher Mortgage Rates in the future.

Now – the FED has not mixed words about this – AT ALL!  They have made it very clear that their buying spree is over 03-31-2010.  Well, the response from the markets has basically been, “Ben – we love you -buttttt, we don’t believe you.”

The markets are pretty smart and here is the point.  The FED has been buying the MBSs for around a year.  If/when they stop, it is likely that all of those dollars spent will have been for nothing. Here is my prediction. The FED is somewhat bracing and somewhat head-faking the markets.  When they stop at the end of March, they are going to watch diligently to see what the markets do.  David Stevens, the new FHA commissioner for HUD stated that a.25 – .75% increase in rates is an acceptable increase in rates  if the market stabilizes there.  If not, there is a good chance that the FED may step back in.  Again – just my opinion.

Translated – Higher Mortgage Rates in the future.

All that to say, now may be a good time to engage with Ines to see if now is the right time to find the perfect Miami Beach home for sale… before the low Miami home loan rates are low-no-’mo!

As one of Florida’s Top Mortgage Brokers, Chris Brown actively serves the Miami and Miami Beach real estate markets.  For mortgage advice, contact Chris directly via email Chris [at] Miamism [dot] com

or by calling 407 377 0500 x 210

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Miami Mortgage Rates Part I

Wow – maybe I bit off more than I can chew here.  Well, lets at least try to dig deep enough to be of value but not too deep that it bores you to tears.  That is one of the main quandaries of being a Miami loan officer – I love this stuff, but most people would rather by playing on Miami Beach or sipping a Mojito than reading about how FED policy influences long term  mortgage rates, am I right?

In this first segment,  I am going to touch on the FED and how they do not have direct control over long-term mortgage rates like for 30-year fixed Miami Beach mortgages.  In Part II,  I will touch on how the FED can influence rates.  And lastly – in the ever awaited Part III, I will address the potential nuclear bomb coming at the end of March.  If you made it this far – that likely got your attention.

Attention A.D.D. readers- may want to call or email me if you are considering one of the following in the near future.

• Getting Prequalified for a Miami Beach mortgage
• Getting a Miami Refinance Loan

Contrary to popular belief, the FED does not dictate long-term mortgage rates directly so lets dispel that out of the gate.  It is not uncommon for me to get multiple calls asking if it makes sense to get a Miami refinance after the FED meets and the public reads “FED Lowers Rates Again” in the Miami Herald.  The FED controls short term lending rates in the form of the Discount Rate [aka the FED Funds Rate] and the PRIME Rate.  This change has much more immediate effects on things like credit card intetest rates, car loans, and lines of credit offered through banks.  The Discount rate is what the FED charges banks to borrow money from the them and the PRIME Rate.  PRIME is what banks use to lend to their commercial clients for things like capital equipment loans.  PRIME is also a common index used as a basis for Home Equity Lines of Credit [HELOCs] for residential real estate.

Stay tuned for Part II coming to your favorite resource for Miami Beach Real Estate Information – MIAMISM.com

As one of Florida’s Top FHA Mortgage Brokers, Chris actively serves the Miami and Miami Beach real estate markets.  For mortgage advice, contact Chris directly via email Chris [at] Miamism [dot] com or by calling 407 377 0500 x 210

Jump  to Part III

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Are you taking the correct steps right from the start?

When looking to buy Miami Beach homes for sale, getting a pre qualification letter has become more than just a good idea – it has become a necessity.  If we have learned anything from recent history, it is that good mortgage advice is, indeed, not around every corner. The point – make the most of each step from the beginning.

Make sure the lender is endorsed by someone in the know… not necessarily someone you just, well… know.  Okay, that is a somewhat of a charged statement, so indulge me a moment to elaborate.  Obviously if you have someone you have used in the past and had momentous success with – by all means… they have earned your business and you should reward that kind of above-and-beyond service.  This Tip is really to warn those that are tempted to use the infamous “sister’s best friend’s cousin half-brother”.  The new world of real estate finance has chewed and spit out 70% of the people in it and now is no time to go soft on this part of the decision to buy.

Here are the top three places to find a rock star mortgage broker.

•    Your Realtor’s preferred loan officer. Typically, the best place to start is with the Miami real estate agent you have chosen.  Since you are employing your Realtor to represent your interests, choosing to stray from players they have experience with forfeits some of the leverage that they bring to the table, potentially thwarting your own efforts.  There is something to be said for synergy.
•    Someone you have personal experience with. Even this one needs to be questioned a bit if it has been quite some time since you have used them.  Mortgage brokers are no different than other people [insert favorite mortgage broker joke here] in that they typically resist change as much as anyone.  With that in mind, if your previous resource has drug their feet or worse – refused to adapt to the new world of real estate – this is a recipe for future frustration for you.  If they are still at the top of their game – stick with them for sure, you have a real solid mortgage adviser.

•    Someone you trust that has a top-notch professional network. The first one that comes to mind [though there are others] would be a financial planner that you entrust with your money.  They likely have a network of super-sharp service providers that are mavens in their field. You still need to do your homework but this can be a distant third for finding the right person to finance your Miami FL house for sale.

The Bottom Line

When you have decided to buy a house please be sure not to over look the most basic of steps.  Please!  I cannot stress that enough.  Why?  Well let me ask you… how many people that are now Miami foreclosure statistics made their mortgage broker choice based on faulty or superficial grounds?  I’m just sayin…

Chris is considered one the Florida’s Top Mortgage Brokers.  He actively serves the Miami and Miami Beach real estate markets.  For mortgage advice, contact Chris directly via email Chris [at] Miamism [dot] com or by calling 407 377 0500 x 210

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