Lori Lewis

In the past, when home buyers were financing the purchase of their home through a lender, or refinancing their home, an appraiser was selected by either the loan officer, Realtor or borrower. That choice is no longer available to those utilizing home financing and for a reason.

On December 23, 2008, the FHFA, (Federal Housing Finance Agency which regulates Fannie mae, Freddie Mac and 12 Federal Home Loan Banks), announced the 'Home Valuation Code of Conduct'. This code will help assure that borrowers and secondary mortgage market investors receive a fair and independent property valuation. Additionally, this code will be used to conduct fewer review appraisals and to create broker protection against appraisal misrepresentation. This code will officially be implemented as of May 1, 2009, however conforming and non-conforming lenders have slowly begun implementing this process since December of 2008. You will notice a vast majority beginning to place this into effect next month.

For future, the loan officer will request an appraisal to be performed directly through the lender. The appraiser will now be chosen by the lender out of their list devised of selected certified appraisers. Most lenders are managing this process through their own in-house Appraisal Management Service.

Please know that should your home purchase be a cash transaction, obviously the choice of appraisers is still yours.

Overall I agree with this implemented code of conduct. I'm putting my faith in those appraisers chosen by the lender that they will indeed perform a fair valuation of every home. With this code of conduct implemented, there should be less stress, fewer arguments, and less chance of manipulation of the system. More importantly, this should benefit and provide fair valuation to the prospected borrowers and mortgage market investors. When a future appraisal is preformed, THE VALUE IS THE VALUE AND THAT'S THAT!

For more information, please view the following two links:

Link of the announcement: http://www.fhfa.gov/webfiles/277/HVCC122308.pdf?elqIsAgent=True

Home Valuation Code of Conduct: http://www.ofheo.gov/media/news%20releases/HVCCFinalCODE122308.pdf

Pre-Qualification vs. Pre-approval:

Believe it or not, they are not one in the same.

Pre-Qualificationis determining the amount of mortgage payment you can afford. It is at this time your information is obtained and it is here where your goals and needs are understood to coincide with your ideal monthly payment. The information obtained here will not be verified until the pre-approval process. This process is simply to create an idea of what you are looking for in a mortgage.

The Pre-Approval process is defined as a more firm commitment on behalf of your mortgage company. This is a formal process which includes obtaining documents that include identification, employment, and financial information. A few examples of such documents include, but are not limited to: state photo ID, social security card, W2's (or full tax returns if self-employed), bank statements, investment accounts, and employer pay stubs. At this time a credit report will be pulled and employment will be verified. A credit report will allow me to see what outstanding debt you incur, if timely payments have been made and will you be able to afford the monthly payment you desire. A credit report in fact determine now might not be the right time to take on a mortgage and maybe some repairs need to be made on your credit report or money needs to be saved.

After all documents are obtained, a formal approval is provided by your mortgage company, otherwise known to you and your realtors as a Pre-Approval Letter. A Pre-Approval letter is required to submit with your bid in insure sellers you have gone through the appropriate channels for financing that particular home. Please note, this process does not include an appraisal or title search.

Neither the pre-qualification process or the pre-approval process guarantee you a mortgage as confirming the property appraises in value, you remain employed, your credit does not deteriorate, and your information does not change will all play a factor in your approval.

A home is a life-long commitment. In order to protect your financial well being, I strongly suggest this be your first step when considering buying a home.

The picture is an example of the reaction I just received from my clients after notifying them of how much money they will save per month. FHA Streamline refinancing makes you want to jump! Interest rates are very appealing whether refinancing or purchasing a home.

Find out how much you could save. Pre-qualification is free! Be the next one to jump around, contact me today!

May I have your attention please, I am requesting those of you who have FHA loans with interest rates over 6% to please step forward and immediatley contact me. That's right, drop whatever you are doing and contact me now!

The interest rates are giving me that warm fuzzy feeling again, especially that they are nicely below 6%. With this interest rate drop, there is a calling for FHA Streamline refinances. They are THE easiest refinances, with little documentation, no appraisal and little or no closing costs. Why pass this by? Save yourself thousands of dollars a year and act promptly.

Don't waste time, save yourself on monthly payment and/or shorten the term of your loan! Contact me immediatley.

*****This has been an important service announcement delivered by your local mortgage consultant :)******

This applies to everyone as we all know someone over the age of 62. It was reported in March of this year that there are 5 million seniors going hungry every day. Did you know that 28% of home loans are in default for individuals over the age of 50? Why? The cost to maintain their home, make repairs to their home, medicine, food, fuel prices, health care all dwindle away the savings of a senior. It's unfortunate that those individuals were not introduced to a loan program that has existed since 1988.

The mortgage program that could enhance ones quality of life is a Reverse Mortgage. A "reverse" mortgage is a loan against your home, using the equity of your home, that you do not have to pay back for as long as you live there. You turn the value of your home into cash with having to move or to repay a loan each month.

You can put down the "defensive" wall, this loan is government backed and is strictly structured around the best interest of the senior. What I love about this program is that spouses, family, attorneys, financial advisers are invited to review the paperwork. This program is designed to make all involved aware and comfortable. Benefits of this mortgage include but are not limited to:

•1. Money for Health Care

•2. Travel or second home

•3. Supplemental retirement income

•4. Remain in the Home

•5. Age in place

•6. Modify or repair the home

•7. In home health care

•8. Eliminate monthly payments

•9. Increase disposable income

•10. Increase money for food and medicines

•11. Purchase a smaller home

•12. Relocate

Unlike a forward mortgages there are:

•1. No Income or Credit Qualifications

•2. No Monthly Repayments

•3. Borrowers Retain Title

•4. Non-Recourse loan

•5. No Debt Left to Heirs

•6. Does not have to be repaid as long as they live in the home.

How is the loan repaid? If the borrower(s) should permanently move out of the home, decease , or sell the property, the loan will come due. How do I qualify? You must be 62 years of age, must be legal citizen, (non-permanent residents are eligible if they have a Social Security number), must be their primary residence, and 1 borrower must continue to occupy the residence as their primary residence. Single family, 2-4 units, condo's PUD's and manufactured homes are eligible. The home must meet FHA standards. Each borrower must receive certified counseling through a third party. If by chance there is a non-borrowing spouse, we also recommend they attend.

As far as distribution of funds, there are several options which include receiving monthly payments, lump sums, line of credit and a combination of options. There are three interest rate options, a monthly ARM, annual ARM, and fixed rate. There is a maximum loan amount which is based on state, (recently notified these limits increased).

If you would like more information on reverse mortgages, explanation of options, etc., please contact me today!