Hammonton, NJ

Buying A Home in Hammonton NJ

Quick Tips for Getting Started on Your Home Purchase

Buying a home can be a complex process, but it doesn't have to be. With a little preparation, you can save a lot of time and hassle by having all of your documents ready when your mortgage professional needs them.

To start with, the lender will need personal information to verify employment for you and your co-borrower (if there is one). They will also need information regarding all of your debts and assets.

In order to expedite the paperwork process, start gathering the following items:

• Most recent paystubs for one month.
• W2s from the last two years.
• Signed copies of your last two years' tax returns, including all schedules that were filed.
• If you are self-employed, a year-to-date profit and loss statement.
• Homeowner's insurance company name and number.
• Most recent bank statements for two months.
• Most recent statements from any retirement and investment accounts for two months.

What costs are involved in Buying a home?
Within 3 days of your application, your Loan Officer must provide you with a good faith estimate of closing costs. Along with any down payment, you will have to pay closing costs as well. This is a brief rundown of some of the fees that could be associated with your new mortgage:

• Application/Processing Fee - Charged by the loan officer to process your loan application.
• Appraisal Fee - Charged by the appraiser to determine the current value of the property.
• Closing Fee - Charged by the closing agency (escrow, attorney, title) to ensure the close of your transaction.
• Credit Report Fee - Charged by the credit reporting agency to provide your credit report to your loan officer and/or lender.
• Title Search/Title Insurance Fees - Charged by the title company to ensure the property is free from liens or title defects.
• Origination Fee - Paid to the originator to obtain a lower interest rate. This is usually expressed in the form of points. One point equals 1% of the loan amount.
• Discount Points - Paid to the lender to secure a lower interest rate.
• Miscellaneous Fees - VA and FHA loans may have other fees associated with them. Private Mortgage Insurance (PMI), document preparation, notary, recording and tax service are other fees which may fall under this category.

Let us help you evaluate your personal situation and assist you in finding the loan program that works best to meet your individual goals and needs.

Learn more about the town of Hammonton, New Jersey!

Call me directly for a free consultation.

Karl Peidl
Lincoln Mortgage Company
251 Bellevue Avenue, Suite 102
Hammonton, NJ 08037

609-878-7013

kpeidl@linc-mort.com

Protecting Credit During Divorce

Divorce raises a whole host of complex issues that can be emotionally and financially devastating. During this time of great upheaval, the last thing anyone wants to deal with is a change in the credit status he or she has worked so hard to achieve.

The good news is it doesn't have to be this way. By taking a proactive approach and creating a specific plan to maintain one's credit status, anyone can ensure that "starting over" doesn't have to mean rebuilding credit from scratch.

The first step for anyone going through a divorce is to obtain copies of your credit report from the 3 major agencies: Equifax, Experian®, and TransUnion®. After you've gathered the facts, create a spreadsheet, and list all of the accounts that are currently open, including the creditor's name, contact number, the account number, type of account, status, balance, minimum monthly payment, and who is vested (joint, individual, authorized signer.)

There are two types of credit accounts, and each is handled differently during a divorce. The first type is a secured account, meaning it's attached to an asset. The most common secured accounts are car loans and home mortgages. For these types of accounts, your best option is to sell the asset. This way the loan is paid off and your name is no longer attached.

The next best option is to refinance the loan. In other words, one spouse buys out the other. This only works, however, if the purchasing spouse can qualify for a loan by themselves and can assume payments on their own. If they cannot qualify on their own, suggest that they try to qualify using a co-signer. One 30-day mortgage late can cause a drop in your credit score of up to 80 points or more, regardless of who the judge says is responsible for paying the monthly obligation.

Your last option is to keep your name on the loan. This is the most risky option because if you're not the one making the payment, your credit is truly vulnerable. If you decide to keep your name on the loan, make sure your name is also kept on the title. Imagine being stuck paying for something you do not legally own.

The second type of credit account is an unsecured account, meaning no asset is attached. It's important to know which spouse, if not both, is vested, and it's best to act quickly. If you are merely an authorized signer on the account, have your name removed immediately and request that the three major credit bureaus remove that account from your credit reports. If you are the vested party and your spouse is a signer, have their name removed right away. Any joint accounts (both parties vested) with balances should be frozen from any future charges and accounts that do not carry a balance should be closed immediately.

Remember, a divorce decree does not override any agreement you have with a creditor. Regardless of which spouse is ordered to pay by the judge, not doing so will affect the credit score of both parties.

Divorce can be difficult for everyone involved. However, by taking these steps, you can ensure that your credit remains intact.

If you or someone you know is struggling with these issues, do not hesitate to call. We are experienced mortgage professionals who can help you meet your financial goals and credit needs.

Stay tuned for more great credit tips!

Karl Peidl
Lincoln Mortgage Company
251 Bellevue Avenue, Suite 102
Hammonton, NJ 08037

609-878-7013

kpeidl@linc-mort.com

www.facebook.com/newjerseymortgages

Mortgage Rate Update & How Adjustable Rate Mortgages Work

During the last decade, Adjustable Rate Mortgages (ARMs) have increased in popularity among consumers. These days, few homeowners (especially first-time buyers) remain in their homes for more than seven years. In this case, it often makes sense to get an adjustable rate mortgage with a lower rate, especially one with a 5-year or 7-year fixed portion, since they won't have the loan long enough to be concerned about rate fluctuation.

Adjustable Rate Mortgages have three main features: Margin, Index, and Caps. The Margin is the fixed portion of the adjustable rate. It remains the same for the duration of the loan. The Index is the variable portion. This is what makes an ARM adjustable. Margin + Index = Interest Rate.

It's important to understand that there are many different indices: The 11th District Cost of Funds (COFI), the Monthly Treasury Average (MTA), The One Year Treasury Bill, the Six Month Libor, etc. Each index has its own strengths and weaknesses; some are slow moving, others are more aggressive.

The third and final component of Adjustable Rate Mortgages is Caps. Caps limit how much the rate can fluctuate over time. Annual Caps limit changes to the annual rate, whereas Life Caps provide a worst case scenario over the life of the loan.

Mortgage Interest Rates*

Rates as of Thursday, 27th August, 2009:

*Rates are subject to change due to market fluctuations and borrower's eligibility.

Karl Peidl
Lincoln Mortgage Company
251 Bellevue Avenue, Suite 102
Hammonton, NJ 08037

609-878-7013

kpeidl@linc-mort.com

www.facebook.com/newjerseymortgages

Home News
Lower Your Property-Tax Bill
By Pat Mertz, Kiplinger's Personal Finance, www.kiplinger.com

If you anticipate a silver lining in the black cloud of declining home prices - in the form of lower property-tax bills - you may be disappointed. The National Taxpayers Union figures that as much as 60% of taxable property in the U.S. is over-assessed, largely because assessment cycles haven't caught up with the decline in home values.

In California, for example, a home's assessed value is based on its purchase price, plus increases of up to 2% annually. The house isn't revalued until it's sold again. To capture the price plunge of the past few years, homeowners must file an appeal and prove that their home's assessed value exceeds its market value. In San Diego County, the assessor's office processed 80,000 appeals in 2008; the average reduction in assessed value so far is $110,000, equivalent to a tax cut of $1,200.

Many jurisdictions calculate a home's assessed value as a fraction of its market value, so do the math to make sure your home is priced fairly. Also verify that you have received any breaks you're entitled to, such as a homestead exemption or a reduction for seniors or veterans.

How to appeal. Go to the assessor's Web site or office to double-check the "property card" and any working papers for your home. Are the figures for square footage and number of bedrooms and bathrooms correct? Has the assessor accounted for any features that could detract from your home's value, such as an irregularly sized lot or a carport instead of a garage? Pull the property cards for five or ten neighboring homes that are similar in terms of age, style and features. If the assessments on similar properties are a lot lower - 10% or more - you have a good case based on uniformity.

Otherwise, if you believe your home's assessed value exceeds its market value, you'll have to provide sales-price data for several comparable homes. You can get that information from a real estate agent, or check the local public library or your county assessor's or county clerk's office. Ask the assessor whether a recent appraisal for, say, a refinancing is acceptable proof of your home's market value.

Two chances. Read your assessment letter for details on how to appeal. You'll probably have two windows of opportunity: During the first, you may request a reduction in the assessed value of your home for the forthcoming tax bill. During the second, you may appeal for a retroactive reduction and refund.

Until your appeal is resolved, pay your tax bill in full to avoid incurring penalties and a lien against your home. As a last resort, you could go to court, but that's an expensive process usually best suited for commercial property owners with more at stake.

You may see advertisements for companies that will help you appeal your assessment, often in exchange for about half of any savings on your tax bill. But with the right preparation, you can probably do just as well yourself using a guide such as How to Fight Property Taxes ($6.95), from the National Taxpayers Union. The NTU's Web site also has links to state and local taxpayer associations that may offer further insight into the appeals process.