Doug Hersom

While shopping for a home is rattled with decisions and can seem overwhelming there but only a few simple questions that really need to be asked among them are.

Do I qualify?

Is home ownership affordable?

Where can I find the right home for me?

These are all questions that we should ask ourselves while pondering the purchase of our home and advancing toward the American dream.

Qualifying is an easy process, for this you will need a professional regardless of how you believe your credit, circumstances or situation. The best way to choose the lender that is right for you is to "interview" them, by this I mean have conversations. Express your goals and whatever other information you find pertinent. Before you do this I would recommend getting a copy of your credit report from any one or all of the credit agencies or online if you have the ability to order one. (You are entitled to at least one free report per year by going to the agencies though you may not get your credit score) I recommend www.freecreditreport.com . The reason you need to get your report is so that you know what your credit score is prior to your interviewing a lender, this is because they are going to want to "pull" your credit and if you can provide your credit score and payments along with you "liabilities" they will have enough information to give you an of what you qualify for though this will not be accurate until they in fact order their own credit report for you. The company I work for will provide you a merged report reflecting each score and all your liabilities along with a list and contact information for all of your reporting creditors once we begin the pre approval process for you at no cost to you.

Some lenders, banks and brokers will charge you an application fee DO NOT PAY THIS; it is in no way a guarantee of pre approval and in my opinion is a sales tactic used to get you to spend unnecessary monies to get you commuted to doing business with them. You can and will find a firm like mine that will not charge you any application fee. The fees that are incurred by the lender for pre approval should be absorbed by their business as the cost of doing business.

Affordability and qualifying go hand in hand as the lender will use the liabilities from your credit report or what you have provided them to calculate your DTI or debt to income ratio. This number should not exceed 50% which should reflect the amount of your income in comparison to your reporting credit obligations and housing expense. Once the lender has qualified you, you need to consider what payment range you would like to have after all this is what will make your new home affordable to you. If you can afford a payment of $1500.00 but your DTI is 50% you may decide that you really don't have much money left at the end of the month as these numbers doesn't consider anything that does not show up on your credit report.

Only you know what the right home is and you should interview realtors in a similar fashion, I recommend getting referrals from friends or family when considering lenders and realtors but you may find that searching the internet will provide you with all the information you need. For example you could visit www.realtor.com, www.zillow.com, or any number of other web sites that realtors and agencies use to list or advertise homes. One of the most effective ways to fine an affordable home is to search the lenders REO list which are properties the lender actually own usually by means of foreclosure.

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Fannie Mae and Freddie Mac Rescue and What It Means for You

Fannie Mae and Freddie Mac Rescue and What It Means for You

Over the recent weeks the government has placed both Fannie Mae and Freddie Mac into a conservatorship, taken on full agency responsibility and started addressing the debt and internal management and accounting delinquencies of both companies. The government's backing served as an economic life jacket benefiting not only Fannie Mae and Freddie Mac, but the nation as a whole.

According to the United States Secretary of Treasury Henry Paulson, the three objectives of the government take-over include, market stability, mortgage availability and taxpayer protection. Although the objectives are clear, many consumers are unsure what to expect over the next few months as the Fannie Mae and Freddie Mac conservatorship and financial bailout plan unfold. Below is a brief overview of the impact of the Fannie and Freddie take-over and what it means for you, the consumer.

Fannie and Freddie
Federal National Mortgage Association, better known as Fannie Mae, and the Federal Home Mortgage Corporation, known as Freddie Mac, have been privately owned and operated since 1968 as government sponsored enterprises (GSEs). Both Fannie Mae and Freddie Mac have purchased mortgages from banks, savings and loans and other lenders to generate cash for the mortgage brokers and encourage more home loans. With the implicit support of the Federal Government, Fannie Mae and Freddie Mac have financed most of the home loans being made in America. Now that this government support is widely known and in effect, consumer faith in both agencies has sustained.

Borrower security is of the utmost importance during this time of financial uncertainty. In order to uphold the mortgage and housing industry and provide affordable home loans to consumers, James B. Lockhart, director of the Federal Housing Finance Agency (FHFA), has taken control of Fannie and Freddie which, in turn, will facilitate the following:

• Lower mortgage rates
  Mortgage rates are expected to fall as the United States Treasury purchases mortgage-backed securities (MBS) and bad assets from both Fannie Mae and Freddie Mac. Now that the Treasury will buy the mortgage backed securities, their prices should rise, as demand increases, and MBS yields drop. As yields drop, so do mortgage rates, thus making home ownership attainable and affordable.
  
  Both Fannie Mae and Freddie Mac announced the cancellation of their planned 0.25 percent charge increase to bank's adverse market delivery fees in hopes that lenders would pass along savings to borrowers who have not yet closed on their mortgage loan. Call Lakewood Capital Inc. at 888-516-7555 to learn more about our mortgage programs and competitive interest rates.
  
  
• Potential modification of delinquent mortgage programs
  In order to encourage more affordable lending programs for those borrowers who are delinquent in their mortgage payments, Fannie Mae and Freddie Mac have initiated additional financial incentives for lenders that modify their troubled client's loan programs.
  
  A Lakewood Capital Inc. mortgage specialist will help you assess your current financial situation to determine if you qualify for a new, low fixed rate loan. Call 888-516-7555 today to schedule a meeting.
  
  
• New mortgage rules
  With the presidential elections just around the corner, government officials are holding off on determining any new lender requirements, yet many are speculating that borrower credit score requirements, loan-size-to-home-value ratios and down payment requirements could come up for review.
  

As the nation draws closer to selecting the next president, consumers throughout the nation prepare for economic change, yet the economy's financial situation is not something that can be fixed over night. Working with a reliable mortgage specialist and practicing responsible borrowing is the key to staying on the upside of the economic downturn.

Keeping You Informed
Lakewood Capital Inc. is dedicated to keeping you informed of the latest market trends and mortgage options. Visit us online at http://lakewoodcapitalinc.com, or call 888-516-7555 today to obtain custom loan options designed to fit your needs and help you obtain your ownership goals.

Mortgages Are Still Available, Despite the Credit Crunch

The recent months have been marked with great chaos and disruption as the financial crisis took its toll on the mortgage, investment and lending markets. Our nation, as well as the rest of the world, has feared for a total collapse until the financial problems were one-by-one resolved and the gravity of its effects countered. Presently, despite the fact that a credit crunch still exists, current homeowners and prospective home buyers still have much to look forward to.

Government Bailout and Interest Rate Cuts
Credit may be tight, but it is not frozen! Thanks to the government's recent bailout, individuals throughout the nation are still able to find conforming and FHA-insured mortgages. With the United States Department of Housing and Urban Development (HUD) and the government's help, 400,000 families have been able to keep their homes by refinancing their mortgages with HUD's affordable mortgage insurance program.

Modified Mortgages
Several banks have already begun to provide modified and more affordable mortgages to borrowers. IndyMac and Bank of America Corporation, which recently acquired Countrywide Financial Corporation, are just a few of the banks that are modifying borrower mortgages in hopes of making home ownership more feasible and affordable.

Contact Lakewood Capital Inc. today at 888-516-7555 to make sure your current loan is well within your financial means or to see if you may qualify for a mortgage loan modification.

Borrower Qualifications
All loan programs require that the borrower meet several income, employment and credit guidelines. Though these loan restrictions have gotten tighter, Lakewood Capital Inc. has the latest interest rates and mortgage application guidelines at hand so that you can be sure you do not stretch your financial limits.

With the exception of Jumbo loans, there is almost no difference in the availability of money this year compared to last year. The only difference is now borrowers must provide documentation, including W-2's, bank statements and tax returns. Before applying for a loan, be sure to discuss your program options and application qualifications with Lakewood Capital Inc..

Learn more about the current borrower qualifications by calling us at 888-516-7555 or visit us online at http://lakewoodcapitalinc.com.

Keeping You Informed
Lakewood Capital Inc. is dedicated to keeping you informed of the latest market trends and mortgage options. Visit us online at http://lakewoodcapitalinc.com, or call today at 888-516-7555, to obtain custom loan options designed to fit your needs and help you obtain your ownership goals.

Increase the Value of Your Home on the Cheap

Ensure your home retains its value as the housing crisis eases. Seek out inexpensive projects that will not only brighten up your place, but put a little extra cash in your pocket should you decide to sell. By tending to details that have a positive impact on home value, sellers can significantly increase their chance of attracting qualified buyers willing to pay a reasonable asking price.
According to the National Association of Realtors, median existing home prices are down 7.1 percent from last year -- and aren't expected to recover until well into 2009. Make the most of your hard earned dollars and focus your remodeling efforts on renovations that will boost the home's value and your bottom line. Below are a few tips and projects that will help you achieve your value goals:

Condition
Is your plumbing in good condition? Is the dishwasher in working order? Condition affects value. Buyers will often bargain down your asking price if your home isn't in tip-top shape. Before performing aesthetic upgrades, be sure to tend to your home's basic maintenance projects.

A smart and inexpensive way to ensure your home holds its value is to hire a home inspector. A simple home inspection will help you prioritize your projects and determine which areas would be the most problematic if your home were on the market. Discuss the most cost effective home improvement projects with Lakewood Capital Inc. by calling 888-516-7555 and determine whether a home loan may help you achieve your home value goals.

Cosmetics
Creating a positive first impression is crucial. By focusing on what the buyer sees, you increase both your home's value and your asking price. Spend time evaluating the areas that have the biggest buyer impact, like the kitchen and bathrooms. On average, a kitchen and/or bathroom remodel will yield a return on investment of eighty percent or more. Consider updating your home's look with the following quick and inexpensive projects:

• Paint - Give your home an instant facelift with a fresh coat of neutral color paint. Paint, along with a little sanding and caulking, will eliminate any imperfections caused by daily wear and tear.

• Energy Efficient Appliances - Replace your old, clunky washer and refrigerator with energy efficient appliances. This simple fix not only improves the overall look of your kitchen, but also helps cut your energy bill by quite a bit. The best of both worlds!

• New Fixtures - New hardware can freshen-up a dated home. New, modern door knobs, drawer handles and faucets can inexpensively and quickly transform a kitchen or bathroom.

Clutter
A free and easy way to spruce up your surroundings is to get rid of clutter. Remove any unused appliances and tools from counter tops and eliminate any plant overgrowth or junk in the front and backyard. Everything should have a storage place. If not, have some helpful neighbors keep your things for the time being.

These simple improvements help you bypass the gloomy home trends and gain a competitive edge in the market. Contact Lakewood Capital Inc. online at http://lakewoodcapitalinc.com to learn more about beneficial home improvement projects or to discuss a home improvement loan that best fits your financial situation.
Keeping You Informed
Lakewood Capital Inc. is dedicated to keeping you informed of the latest market trends and mortgage options. Visit us online at http://lakewoodcapitalinc.com or call today at 888-516-7555, to obtain custom loan options designed to fit your needs and help you obtain your home goals.