The "Norm" Changes for Mortgage Down-Payments!

Before the housing market crashed a few years ago, the "norm" used to be for buyers to save for years until they had enough money to put a down-payment on a home. Lenders are now taking us back in time as they change the requirements for a loan. If you are thinking about buying a home or are in the search for one, keep these things in mind:

• To receive low-rate mortgages or refinancing, lenders now require 10% down-payment or equity.
• If you can't put down 10% you still have the option for an FHA insured mortgage but you will still need 3.5% down-payment
• For no down-payment loans you need to qualify for a Department of Veterans Affairs Guaranteed Home Loan or a USDA Rural Housing Service Loan.
• A first mortgage of 80%, with a 5-10% down-payment, and the remaining 5-10% on a second-mortgage can, in many cases, be cheaper than getting the home loan with mortgage insurance.

Take advantage of extremely low mortgage rates and buy or sell your Broken Arrow, OK area home today. Contact Kelly Howard of McGraw Realtors at 918-230-6341 or www.kellyhowardhomes.com.

To read the original article in the Tulsa World, "Buyers Forced to Jump Through Hoops", click here.

Mortgage Rules Make it Harder to Qualify!

For some buyers, it will be more difficult to qualify for a loan for their new home. Why? Well, the mortgage market and the housing market have both changed a lot over the last couple of years. These changes have caused the rules for qualifying for a low-interest mortgage much more difficult.

In the past, many homeowners were passing on the fixed-rate mortgage and utilizing an adjustable rate mortgage. Bankrate says that for some homeowners, those not planning to stay in their home longer than 5 years, an adjustable rate mortgage was usually a good fit. For those that did plan on staying in their home for more than 5 years, a fixed rate mortgage was usually the right choice. With the changing economy and more difficult standards, however, things are changing.

Two of the new rules for mortgage qualification include:

• FICO scores must now be at least 740 in order to get the best rates, fees, and points.
• Homeowners using an FHA loan may now only spend 31% of their gross monthly income on their house payment, including principal, insurance, interest, taxes, and association fees.

Want a few tips to help improve your chances? First, check your FICO score regularly. If your score is lower than optimum, you can begin making changes to raise the score. If your score is already high, then you know you are doing the right things. Second, don't focus simply on interest rates when trying to get a loan. Remember that you have the option to pay discount points or change the type of loan. Third, always compare several different loan options to determine what the differences in cost really are. You can compare a loan with a higher interest rate with no points to a loan that is a lower rate but requires points to be paid. You can also compare your options with different companies. Finally, if you refinance your house after 5 years, don't get another 30 year loan. Get your loan amortized for the remaining period of your old loan.

To read the article from the Tulsa World, "Buyers Forced to Jump Through Hoops", visit this link.

To buy or sell your Broken Arrow, OK property, contact Kelly Howard of McGraw Realtors at 918-230-6341 or www.kellyhowardhomes.com.

The Top Questions You Should Ask Your Mortgage Banker!

Most home buyer's have questions about their mortgage and the mortgage process. It is easy to get overwhelmed with the process so keep this list handy to get you started:

• How much down-payment do I need to buy a house? If you are a Veteran or buying in a rural area you can get 100% financing. The seller is also allowed to pay your closing costs. If you are Native American you may be eligible for a Hud 184 loan. This loan requires as low as a 1.25% down-payment, depending on the loan amount. For an FHA loan, you must put down 3.5%, for Conventional a 5% down-payment is required, and Investment loans require a 20% down-payment.
• What are Points/Origination Fees? Points and Origination Fees are additional fees paid at closing to lower your interest rate. 1 point is equal to $1000.
• How do I find out exactly what my closing costs, fees, and other items are when I am comparing mortgage companies and rates? Ask for a Good Faith Estimate. Look at fee lines 800-900. Compare the rate, points/origination fees, and other items within that range.
• What constitutes a rural development loan? A rural development loan is all based on the population of an area. Owasso and Glenpool, for example, are still rural and are eligible for a rural development loan. USDA Rural Development website can give you more information about any areas you are interested in.
• How do Mortgage Bankers get paid? Generally, it is based on a commission calculated from the volume produced. The more produced, the higher percentage.

If you have questions about a mortgage, contact Karen Heston at BOK Mortgage, 918-230-9432 or visit her website.

For real estate questions and all your real estate needs, contact Darryl Baskin, McGraw Realtors at 918-259-2600 or www.darrylbaskin.com.

Buy Now or Wait for Lower Rates?

With memories of home mortgage rates of 16% and 18% in years past, current mortgage interest rates are at some of the lowest points in the last 25 or 30 years. At this time, mortgage interest rates are in the 5% range, depending on the type of loan obtained. For most "First Time Home Buyers," the interest rates have probably never been lower in their lifetime. Even for seasoned home buyers, current interest rates are a real bargain! Waiting for a possible drop of perhaps 1/4% of mortgage rate does not justify waiting to purchase a home when the mortgage interest rate could just as easily go up 1/4% to 1/2%. If a home purchase is a consideration, taking advantage of the current interest rates would be a wise course of action.

To discuss current mortgage rates and information contact Steve Currington of Currington Mortgage at 918-810-0092 or www.curringtonmortgage.com.

To buy a home in the Broken Arrow, Oklahoma area, contact The Baskin Real Estate Specialists at 918-258-2600 or www.darrylbaskin.com.

For a directory of home maintenance professionals visit www.tulsahomemaintenance.com.

Homebuyer's Tax Credit Extended

The $8000 tax credit for first time home buyer's has been extended. Originally, the tax credit was only offered until November 30, 2009. The new tax credit extension enables home buyers under contract by April 30, 2010 to use the tax credit. The extension also allows for a $6500 tax credit for home buyers who have owned a home and lived in it for 5 years. In addition, home buyers have an additional 60 days to close the sale. For more information on the tax credit extension, contact Jeff Sargent at ONB Mortgage at 918-392-6572 or jeff_sargent@onbbank.com.

For your Broken Arrow, OK. real estate needs, contact The Baskin Real Estate Specialists at 918-258-2600 or www.darrylbaskin.com.