Seth Jacobs

Gain a better understanding of the factors that determine your eligibility for a loan.

The importance of financial responsibility is oftentimes overlooked in a materialistic nation comprised of excessive credit card offers, stretched lines of credit and the weakening dollar. In order to boost financial responsibility and provide more accurate information to credit bureaus, the company that calculates FICO scores has introduced a revamped credit scoring system. Many consumers will benefit, but others may face higher interest rates which may affect their monthly mortgage payments. Become one step closer to financial confidence by gaining a true understanding of the factors that influence your credit score.

Determining Your Credit Score
The restructured FICO credit scoring system, created by the Fair Isaac Corporation, is reported to go a bit easier on consumers who make an occasional mistake, yet really crack down on those who have multiple late payments and delinquencies. The weight put on certain factors, like late payments, have changed, while the benefit of authorized-user status has been dropped from the scoring system altogether. These changes may strengthen or slump your score by 20 or more points. Get to know the other factors that impact your credit score by reviewing the details below.

Length of Credit History
The longer your credit history, the better. Lenders like to see that you can manage your credit accounts responsibly over time. Now that credit scoring model ignores authorized-user accounts, it is important for those “piggybacking” to establish their own credit on a new and separate account. The omission of authorized-user accounts from future FICO credit reports will enable credit bureaus to protect lenders from those trying to misrepresent their credit risk.

Payment History
Payment history is one of the most influential factors in determining your credit score. As mentioned earlier, future FICO credit reports will forgive a few late payments, but if your account shows multiple late mortgage payments and delinquencies you may see your FICO score drop.

Contact Lakewood Capital Inc. at 888-516-7555 to discuss affordable mortgage products that will enable you to maintain excellent credit and payment histories.

Amount Owed
Another significant factor that is reviewed by the credit bureau is the amount owed on your credit accounts. Having a mortgage and several credit cards will not classify you as a high risk borrower, but owing a lot of money on several accounts will. Make an effort to keep all credit balances low so credit bureaus and lenders do not assume you've overextended your financial capacity.

New Credit
Opening several credit accounts over a short period of time may present you as a risk to lenders. This is especially so for those who do not have a long, established credit history. Try to keep new credit accounts to a minimum.

Credit in Use
Be aware of the types of credit accounts you use. This includes credit cards, financial accounts, retail credit accounts, installment loans and mortgage loans. The FICO scoring program analyzes all active credit profiles when determining your financial responsibility.

Remember, higher credit scores are the most desirable to lenders; but if yours takes a dip, no need to fret, you may still qualify for certain loans and mortgage products. Review your finances and work with Lakewood Capital Inc. so that you may better understand the role your credit score plays in your pursuit of an affordable mortgage product.

Keeping You Informed
Our mortgage professionals are dedicated to keeping you informed of the latest market trends and mortgage options. Visit us online at www.lakewoodcapitalinc.com, or call 888-516-7555 today, to learn more about the best loan options for your specific financial situation. Together we can obtain your ownership and financing goals.

Going Once… Going Twice…
Home Auctions Quickly Get Foreclosed Homes Off the Market

Any seasoned salesperson can tell you that waiting for a buyer to make the first move is an ineffective marketing tactic, especially when pertaining to the real estate industry. Instead of sitting back and waiting for a sale to come their way, homeowners are utilizing alternative property marketing methods.

Over the last few years, real estate auctions have become a popular way to market everything from newly constructed condominiums in an over-built market, to single family homes that have been on the market for several months and are in danger of foreclosure. Real auctions not only produce plenty of buyer interest and traffic, they also attract serious buyers. Due to the connotation of the word “auction”, buyers rightfully assume they will find significantly discounted homes and great homebuyer bargains.

Before the Real Estate Auction Tips
Before you raise that auction paddle or settle on placing your property on the auction block, it is important know home auction basics. Below are a few auction tips and financial factors to consider when discerning whether or not home auctions are the solution to your buying and/or selling needs.

Both Buyers & Sellers Should Know the Rules
Is the auction you are overseeing or attending an Absolute Auction, Minimum Bid Auction or a Reserve Auction? It is important to know auction details and rules so you can be prepared to make an educated bid or a quick home sale.

Absolute Auctions are the most buyer-friendly. The absolute auction seller agrees to sell the home to the buyer with the highest bid, regardless of the final price. Since a sale is guaranteed, absolute auctions generate the most buyer excitement and participation.

Minimum Bid Auctions involve the seller agreeing to a minimum selling price, which is normally advertised before the auction. This not only reduces the sellers' risk, but also provides more control over who is permitted to bid at the auction.

Unlike Absolute and Minimum Bid Auctions, Reserve Auctions do not result in an immediate sale. Instead, the seller has the right to accept or decline any bid within a specified period of time. Reserve Auctions are commonly used with court-ordered sales where a price must be sanctioned before closing.

Buyers, Get Pre-Qualified
Avoid buyer's remorse by ensuring you are capable of taking on the financial responsibilities of a new home. We are dedicated to providing you with practical mortgage product information and loan financing tools to guide your search for a loan program that is appropriate for your situation.

Visit http://lakewoodcapitalinc.com to learn more about the additional costs and monthly mortgage payments that will accompany your new purchase; or contact us today at 888-516-7555 to get pre-qualified for a loan that will fit your unique situation.

Buyers, Schedule a Post-Auction Meeting with Your Broker
Most auctions require you to gain approval for a loan within a specified escrow time-frame. Failure to get approved for a loan in a timely fashion can result in liquidated damages. Be sure you contact us to meet after the auction so that you can obtain your loan within the seller's brief time frame.

Working closely with Lakewood Capital Inc. will not only expedite your home buying and selling process, but it will also result in custom financial solutions designed to fit your unique lending needs.

Keeping you informed…
Keeping you up to date on the latest housing market news and making sure you receive the best mortgage options and rates is our commitment to you. Visit us online at http://lakewoodcapitalinc.com, or call today at 888-516-7555, to obtain custom loan options that will fit your current financial situation and help you obtain your ownership goals.

Mortgage Terminology to Know Before Locking into a Loan

Whether you are a new home buyer or looking to refinance a loan that you are already locked into, consumers agree that mortgage and loan terminology can often be confusing and sometimes overwhelming. Along with having to shop for a lender, consumers also have to shop and compare the total cost of the loan, including the interest rate, fees, points, prepayment penalties, the loan term and more. When making one of the most important financial decisions of your life, knowledge is key.

Below are a few mortgage terms and term details to know before locking into a loan.

Interest Rates
One of the first and most obvious terms to consider is the loan's interest rate. The interest rate is used to calculate your monthly payments and will determine how much you'll pay over the life of the loan. When comparing your mortgage options, take a close look at the annual percentage rate (APR). This figure combines the yearly interest costs and other fees charged by a lender over the life of the loan. Contact Lakewood Capital Inc. today at 888-516-7555 for an itemized list of what is included in each APR calculation for your new loan scenarios so that we can help you make a fair mortgage program comparison.

Points
Points are a type of pre-paid interest issued by the lender as an alternative to charging higher interest rates on the loan. One point is equal to one percent of the loan principal (the actual amount of your loan). If you opt to finance your home at a lower interest rate, the discount points are often paid at the time of closing. Consumers looking to live in their home for 10 to 20 years or longer may find that having more points with a lower interest rate will pay off over time whereas consumers who only plan to live in their home for 5 to 7 years may find a loan with a higher interest rate and fewer points the better option. Contact Lakewood Capital Inc. today to discuss different loan options available depending on the future plans for your new home or visit us online at http://lakewoodcapitalinc.com to view our current loan programs.

Closing Costs
Processing a mortgage application can be time consuming and costly. Typically this process takes anywhere from two to eight weeks. Avoid any mortgage closing delays by paying off unnecessary debt and checking your own credit file a few months before shopping for your mortgage.

Once you've shopped, compared and closed on your mortgage, expect to accrue additional lender fees. Closing costs, which may consist of title insurance costs, lender attorney fees, appraisal fees and more, can add thousands of dollars to your borrowing costs. When shopping for your lender, work with Lakewood Capital Inc. to collect good faith estimates (GFE) of lender closing costs and fees. Though lenders aren't required to provide a GFE of settlement charges before the borrower applies for the loan, federal law does require them to provide it three days after. Work closely with Lakewood Capital Inc., and take the time to scrutinize each estimate and define each closing cost fee so that you can make an informed decision.

The Loan Term
When shopping for a mortgage program that will fit your current and anticipated finances it is important to understand the number of years your loan will be active. Typically, mortgages with shorter terms carry higher monthly payments, while mortgages with longer terms spread payments out over the long life of the loan. Consumers who can afford the high monthly payments of a short term loan can save a lot of interest over time. Visit Lakewood Capital Inc. online at http://lakewoodcapitalinc.com or contact us directly at 888-516-7555 to help find the loan terms that will best fit your situation.

Prepayment Penalty
Loans with longer terms may seem affordable now, but what happens when your financial outlook changes and you'd like to refinance before the term is complete? Paying your loan off too early may result in a prepayment penalty or fine. To help determine if your current loan has any prepayment penalties, contact us today at 888-516-7555.

Having a general understanding of the mortgage business and what goes into a home loan will ensure that you properly compare your loan options. Working with an experienced mortgage broker enables you to shop thoroughly and determine the best mortgage program for your specific financial needs.

Keeping You Informed...
As a borrower, it is important to watch the market and stay in touch with Lakewood Capital Inc. who 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 that will fit your current situation and help you obtain your ownership goals.

Home prices have dropped and mortgage rates are the lowest in decades, but is it the best time for you to purchase a home?

Lower home prices, due in part to the declining median price of homes, are motivating many potential home buyers to take action. According to the National Association of Realtors, the median home price for an existing home in the United States during December 2008 was $175,400 a decrease of 15.3 percent from $207,000 a year ago.

Given the current recession, median home prices are likely to continue to fall in 2009 in most markets. If you're one of the many potential homebuyers planning to take advantage of the plunging home prices, make sure you're financially prepared to acquire a mortgage and ready to take on the responsibilities of home ownership.

Financial Preparation
As you may know, the proverbial bar has risen when it comes to credit and it has become a bit tougher to qualify for a mortgage. Before you set your hopes on a home, make sure you will qualify for a loan by having good credit (typically a score of at least 620) and a good-sized down payment in the bank of at least 10 percent. In Maine, a popular loan is the USDA loan. This is a true 100% financed loan and many Maine people qualify. Obtain a full list of loan qualifications by meeting with a Lakewood Capital Inc. mortgage professional. We will not only help you review your current finances, but also suggest a mortgage program that best fits your situation.

Mortgage Rates
Low rates, combined with falling home prices, are making homes affordable for those who qualify. Call 888-516-7555 today to discuss purchasing qualifications for your area and whether homeownership is right for you.

Home buyers aren't the only ones benefiting from these new, low mortgage rates. Many homeowners, who have been financially responsible and have equity in their homes, are taking notice of the falling rates and opting to refinance their homes at a better rate. Contact us online at http://lakewoodcapitalinc.com to learn if your credit score and current home equity is enough to qualify for a refinance without the hefty fees.

Plant Roots
The economy is bound to be a bit bumpy the over next few years, make sure you are financially equipped and mentally prepared to see home prices drop even more after your purchase. Though home prices will fluctuate, stay put and plan to live in your home for five or more years so that you can witness your home appreciate in value.

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.

VA Loans

Why a VA Loan? Apply Online The more you know about our home loan program, the more you will realize how little "red tape" there really is in getting a VA loan. These loans are often made without any down payment at all, and frequently offer lower interest rates than ordinarily available with other kinds of loans. Aside from the veteran's certificate of eligibility and the VA-assigned appraisal, the application process is not much different than any other type of mortgage loan. And if the lender is approved for automatic processing, as more and more lenders are now, a buyer's loan can be processed and closed by the lender without waiting for VA's approval of the credit application. Additionally, if the lender is approved under VA's Lender Appraisal Processing Program (LAPP), the lender may review the appraisal completed by a VA-assigned appraiser and close the loan on the basis of that review. The LAPP process can further speed the time to loan closing.

What is a VA Guarenteed Loan? Apply Online These loans are made by a lender, such as a mortgage company, savings and loan or bank. VA's guaranty on the loan protects the lender against loss if the payments are not made, and is intended to encourage lenders to offer veterans loans with more favorable terms. The amount of guaranty on the loan depends on the loan amount and whether the veteran used some entitlement previously. With the current maximum guaranty, a veteran who hasn't previously used the benefit may be able to obtain a VA loan up to $240,000 depending on the borrower's income level and the appraised value of the property. The local VA office can provide more details on guaranty and entitlement amounts.

Who is Eligible? Apply Online Veterans who served on active duty and were discharged under conditions other than dishonorable, during World War II and later periods are eligible for VA loan benefits. World War II (September 16, 1940 to July 25, 1947), Korean conflict (June 27, 1950 to January 31, 1955), and Vietnam era (August 5, 1964 to May 7, 1975) veterans must have at least 90 days' service. Veterans with service only during peacetime periods and active duty military personnel must have had more than 180 days' active service. Veterans of enlisted service which began after September 7, 1980, or officers with service beginning after October 16, 1981, must in most cases have served at least 2 years. VA regional office personnel may assist with additional eligibility questions

VA Loan Applications Apply Online The application process for VA financing is no different from any other type of loan. In fact, the VA application form is the same as that used for HUD/FHA and conventional loans. The mortgage lender verifies the applicant's income and assets, and obtains a credit report to see that other obligations are being paid on time. If all is well and the appraised value of the property is enough to cover the loan needed, the lender, in most instances, can then close the loan under VA's automatic procedure. Only about 10 percent of VA loan applications have to be submitted to a VA office for approval before closing.

VA Loan Uses Apply Online You may use VA-guaranteed financing: To buy a home. To buy a townhouse or condominium unit in a project that has been approved by VA. To build a home. To repair, alter, or improve a home. To simultaneously purchase and improve a home. To improve a home through installment of a solar heating and/or cooling system or other energy efficient improvements. To refinance an existing home loan. To refinance an existing VA loan to reduce the interest rate and add energy efficiency improvements. To buy a manufactured (mobile) home and/or lot. To buy and improve a lot on which to place a manufactured home which you already own and occupy. To refinance a manufactured home loan in order to acquire a lot.

VA Loan Costs Apply Online A basic funding fee of 2.0 percent must be paid to VA by all but certain exempt veterans. A down payment of 5 percent or more will reduce the fee to 1.5 percent and a 10 percent down payment will reduce it to 1.25 percent. A funding fee of 2.75 percent must be paid by all eligible Reserve/National Guard individuals. A down payment of 5 percent or more will reduce the fee to 2.25 percent and a 10 percent down payment will reduce it to 2.0 percent. The funding fee for loans to refinance an existing VA home loan with a new VA home loan to lower the existing interest rate is 0.5 percent. Veterans who are using entitlement for a second or subsequent time who do not make a down payment of at least 5 percent are charged a funding fee of 3 percent.

Maine FHA and VA Home Loans Apply Online Lakewood Capital Inc. can help you with your Maine FHA and Maine VA home loans. Maine FHA home loans can help Maine borrowers obtain a Maine mortgage more easily. Maine VA home loans can help Maine Veterans secure Maine home loans to purchase their dream home. Contact Lakewood Capital Inc. for help with your Maine FHA and VA home loans.