About White County, IN

After looking at the stats for our area for the 1st qtr, there is good and bad news. The good news is that properties in Monticello city limits saw an increase in average sale price of 8% over this time last year. There were fewer homes sale, but the days on market was less than last year. This might be proof that First Time Home Buyers are realizing this is a great time to buy.

However, Rural Monticello, Lake Shafer and Lake Freeman are still seeing decreases. But 1st quarter stats on lake property can be skewed a bit due to what kind of winter we had. Although, I don't have an explanation for the Rural Monticello market. It will definately be an area to watch going into this next quarter.

Today, I had a gentleman stop in my office that was trying to get people to voice their opinion on Healthcare Issues. His firm then takes all the signatures and sends them to each persons' congressman.

A question he asked was "If your congressman walked in right now and gave you a minute of his time to listen, what would you say to him about health care reform in our country?"

I thought for a moment and replied that I would say that even though healthcare in our country is a very important issue, I want you to drop the party lines and fix the economy. Don't play blame game, don't throw money at particular companies or institutions and hoping that magically fixes it. But at the same time don't sit on your hands and over analyize it either."

There is a fix out there. I don't know what it is. No one person does. But there are a lot of smart people in Washington. They wouldn't be there if they weren't. If they would work together, and leave the party affiliations and the personal agendas at the door, they can fix it.

That's my thoughts.

Now that 2008 is behind us, it is time that we focus on 2009. I don't believe that we have seen the end of the current economic situation, but I do feel that we will see the bottom this year. Meaning that we will eventually be able to put this behind us and move on.

In my next few posts, I will touch on how my local markets, including the Lakes, faired in 2008.

Just to let everyone know, I am no longer with Zook Realty. I decided to change direction and effective Oct 1, I opened Koppelmann Real Estate. I have a small office in downtown Monticello. This gives me the chance to do what I truly love with real estate - work with sellers and buyers. This change will also allow me to better service my clients. I am very excited with this new direction and will hopefully update my blog more often as well.

Organize Your Documents

A properly documented loan application makes your loan process go smoothly. This checklist will help you gather your paperwork.

1. Complete and sign the residential loan application, Form 1003, and the attached loan info sheet, credit authorization and fair lending notice. Page 5 of the application is a continuation page in case you need additional space for your assets or liabilities. If you make a mistake while filling out the application cross it out, and make a change. Do NOT use whiteout.
2. If you are salaried: provide W-2's for the previous two years and one month of pay-stubs. If you are self-employed, provide tax returns for the previous two years, including all schedules, and a YTD profit and loss statement. (Note: provide copies of all requested documents. Do not provide original documents.)
3. If you own rental property, provide recent rental agreements and tax returns for the previous two years, including all schedules.
4. To speed up the approval process, provide bank statements for the most recent three months, and recent statements for stock, mutual funds and IRA/401K accounts.
5. If you are requesting a cash out refinance, provide a letter explaining how you will use the refinance proceeds.
6. If applicable, provide a copy of your divorce decree and settlement agreement.
7. If you are NOT a US citizen, provide a copy of your green card (front & back). If you are NOT a permanent resident provide a copy of your H-1 or L-1 visa.
8. If any borrower has filed bankruptcy, provide the Discharge Notice, Filing and Schedule of Creditors.
9. If you are applying for a home equity line of credit or loan (second loan), also include your first mortgage note. (This should be with your closing loan documents.)

Get Qualified

Getting qualified before you apply for a loan can help you understand how much you can borrow.

When buying a home, you may be pre-qualified or pre-approved. You can be pre-qualified over the phone or on the Internet in a few minutes. Pre-qualification is not as useful as pre-approval. Pre-approval requires a more rigorous process, including verification of your credit, income, assets and liabilities. It is highly recommended that you be pre-approved before you start looking for a home.

Being pre-approved will:

1. Inform you of your maximum affordable home value, and save you from previewing properties outside your price range.
2. Put you in a stronger negotiating position with the seller, because the seller will know your loan is pre-approved.
3. Help you close quickly, since your loan is pre-approved.

Shop Loan Programs and Rates

What loan program is best for your situation? Lenders offer many different loan options:

1. Think about how long you plan to keep the loan. If you plan to sell your home in a few years, you may want to consider an adjustable rate or balloon loan. If you plan to keep your home for a longer time, you may want to consider a fixed rate loan.
2. Understand the relationship between rates and points. Points are considered prepaid interest and may be tax deductible. Each point is equal to 1 percent of the loan. For example 1 point on a $150,000 loan is $1,500. The more points you pay, the lower your rate.
3. Compare different loan programs. With so many programs to choose from, it's hard to figure out which program is best for you. Consult an experienced loan officer who can help you find a loan program that best fits your short- and long-term plans.

Obtain Loan Approval

Once your loan application has been received, we will start the loan approval process immediately. This involves verifying your:

• Credit history
• Employment history
• Assets including your bank accounts, stocks, mutual fund and retirement accounts
• Property value
• Based on your specific situation, additional documents or verifications may be required.

To improve your chances of getting a loan approval:

• Fill out the loan application completely.
• Respond promptly to any requests for additional documents. This is especially critical if your rate is locked or if you plan to close by a certain date.
• Do not make any major purchases. Do not buy a car, furniture or another house till your loan is closed.
• Anything that causes your debts to increase might have an adverse affect on your current application.
• Do not move money into your bank accounts unless it can be traced. If you are receiving money from friends, family or other relatives, please contact us.
• Do not go out of town around the closing date. If you do plan to be out of town when your loan is expected to close, you may sign a power of attorney, to authorize another individual to sign on your behalf.
• Notify your loan officer before applying for any other credit, including credit cards, personal loans or even with another mortgage company. Some loan programs have strict guidelines regarding your credit score. Credit inquiries may lower your credit score and may have an adverse affect on your loan approval.

Close the Loan

After your loan is approved, you will be required to sign the final loan documents. This will normally take place in the presence of a notary public. Be prepared to:

• Bring a cashiers check for your down payment and closing costs if required. Personal checks are normally NOT accepted.
• Review the final loan documents. Make sure that the interest rate and loan terms are what you were promised. Also, verify the accuracy of the name and address on the loan documents.
• Sign the loan documents. The notary will require that you have your picture ID with you. Some lenders also require to see your Social Security card.

Your loan will normally close shortly after you have signed the loan documents. On refinance and home equity loan transactions, federal law requires that you have three days to review the documents before your loan transaction can close. Purchase transactions do not have a three-day rescission period.

Contact me today to find out the right loan program for your needs!

DAVID MENNEN
Mortgage Consultant, Owner

Tippecanoe Mortgage, Inc.
1221 S. Creasy Lane, Suite J
Lafayette, IN 47905
Direct: (765) 448.3200
Fax: (765) 448.6398
Email: dmennen@tippecanoemortgage.com
Website: www.DavidMennen.com

The #1 FHA Lender in Tippecanoe County - Since 2003!

P.S. If you are ready to talk with us right now, call 765-448-3200. If you miss us, please leave your name and number. We will get right back to you.

P.S.S. On my website I offer tons of free consumer reports to help renters, buyers, sellers and homeowners looking to refinance. To get your own FREE copy of these reports, just go to http://www.davidmennen.com/buyer_reports.html!

Local Mortgage services for Greater Lafayette, West Lafayette, Crawfordsville, Monticello, and the rest of Indiana, Purdue, Tippecanoe County, and the surrounding areas. Local Service with internet rates! Free Quotes! Visit my website for great financial information. http://www.davidmennen.com/