Matthew Watts

ABC 12 News' story about how good people get out of bad mortgages. Our clients were happy to do an interview as we were too. It is important for people to know that there are options for them when things tighten and seem to be unsolvable. The worst thing is to wait and not talk to anyone about it.

I know it is hard to understand exactly what your credit score is, how it is calculated, and especially how it affects you when you want to buy a home. Here is a general, and easy to understand guide to your score in reference to obtaining a mortgage.

Below 500: Well I can't sugar coat it, you are in pretty deep. This is where it may be a good option to seek consultation from a good attorney or a non-profit credit repair service (emphasis on non-profit).

501-560: You score is pretty low, but not beyond repair. You will not be able to qualify for a mortgage while your score is in this range. However, if you struggle through some high interest credit cards, maybe a secured card or two, you can bring it up.

561-619: You can probably obtain a mortgage, but it will be a very trying experience. You may be better served by simply waiting a month or two, trying to pay down some credit card balances, whatever you can do to optimize your score.

620-680: It may still seem just average, but in mortgage terms life is much peachier about the 620 mark. There are some things you won't be able to do. You may find it difficult to purchase with no money down. But as long as there isn't something odd about your application keeping you from obtaining a government backed loan, you are golden.

680 and up: Yes I realize that your score can get much higher from a 680, but for mortgage purposes there is really not much difference once you are above a 680. Once you get over 720 you may get a very slight rate discount, but nothing noticeable. Today is November 18, 2008 and this breakdown may change as the lending business tightens even more but for now, that's what it is.

I hope this helps, and good luck on all of your financial endeavors.

For more in-depth answers or help go to our website:

www.iconmortgagelending.com

Bum Bum Buummm. Enter scary music and cold sweats, you just fell in love with a home that has a broken furnace and a big orange stain where a bathtub used to be. Chances are your financing is going to resemble that orange gunk on the tile right?

There are options. With conventional financing, yes you will be sunk. The bank will only want a safe asset to secure. There are some programs that allow flexibility here like HomePossible, but it is very impractical.

The good news is, that with the foreclosure boom, came the need to repair existing homes as production of new homes slowed to a crawl. Government financing fills the void of sensible repair financing. Actually it filled a long time ago before the housing boom started and home construction grew out of control.

With FHA there is a possibility for a repair escrow; however the repairs must be minimal. The better option is the 203k loan that will allow a closing to take place like normal but provide you with money for all sorts of repairs including essential appliances.

If you are lucky enough to find a good loan officer that knows how to work the USDA repair options, they are far superior. You will need to find a property in an eligible area, but it is a very easy process on the borrower.

No matter what, be prepared for a little extra time and effort by both you and your purchase team. Always shop around for your repair quotes and check the reputation of any contractors with resources like the Better Business Bureau before making any decision.

For more in-depth answers or help go to our website:

www.iconmortgagelending.com

ABC 12 News was recently in our office doing a story about the current foreclosure market for their Money Source segment on the 6 o'clock news. It is a somewhat short segment that talks a little about the Hope for Homeowners program put forth to help curb foreclosures. If you need more detailed information on the subject, there are old blogs, up-coming blogs, and as always you can check out our website: www.iconmortgagelending.com www.iconmortgagelending.com

We have talked about a lot of different aspects about buying a foreclosure property. I realize now that I have yet to give you the most important overview people want- a timeline expectation. Let me remedy that now by explaining what needs to be done and what the reasonable expectation should be.

You found your dream home, and you made an offer, now what? Well this is the second hardest time of the entire transaction- waiting to hear from the bank. This can take anywhere from a day to a week or two all depending on what bank owns the property. The best thing to do during this time is to talk to your loan officer as much as possible. Make sure you ask to actually submit your loan to the underwriter, rather than rely on a pre-approval. This is precious time to work on clearing conditions that most loan officers will squander if you let them.

Your offer was accepted, what still needs to be done? Assuming you used a good loan officer, underwriting is mostly done. There are still many things that can't be done until your offer has been accepted. The first thing is to get an inspection by a professional that can assess the structural integrity. This should take about 2-5 days to complete.

Once this is done and you are happy with the results the remainder of tasks should be done during the same period of time: the appraisal, title work, any water tests or pest inspections; and any conditions that come from an underwriter after viewing these items. This should take 10-15 days for a good loan officer, or 16-25 for a mediocre one... anymore than that it might be time to switch.

When can we close, when can we close?!? So, you'll notice that you are about 20-25 days in now and a closing seems nowhere in sight. This is the most difficult part... fighting the anticipation and waiting to close. In fact, after you get a clear to close, there is still much work to be done and it is important to let it be done. You have to get a time slot to close, your lender has to get the title company a closing package with all of the documents, and after they get it, the bank will need two days to review the paperwork. Then your loan officer will need a day or two to get a HUD-1 Settlement Statement and review it. I know, at this point you would think everything would be correct, but I always end up yelling at someone right about this point in the transaction over some silly fee that was not disclosed before and working to get it waived. Be patient and plan on 5-7 days after you are cleared to close before you can close.

Well, at least that is finally it. You are right...almost. It is important to realize that when purchasing a foreclosure, you are dealing not with single person trying to sell the home to you, but with a litany of bank personnel trying to protect what little investment they have left. So even after the closing, the bank will most likely want another day to review the final documents. That means, that you will be closed, pumped and ready to move but until the money has been delivered you won't own the property.

All said and done, a Michigan Foreclosure Purchase can take anywhere from 20-45 days from start to finish. Be willing to roll with the punches and if you are very impatient... make sure you find a great loan officer!

For more in-depth help or answers, go to our website:

www.iconmortgagelending.com