Educating NJ First Time Home Buyers about Information on the Internet

Last night I had the privilege of spending a little over half an hour on the phone with a first time home buyer. Initially I wasn't overjoyed at spending time with a client at 7:30 on a Friday night, but the reality was that I ended up having a good time helping a young couple understand the home buying process.

There are various programs available (which can be confusing even to someone in the business). Locally in Gloucester County and South Jersey there are several loan programs that first time buyers can take advantage of.

In this particular case this buyer had done a good amount of research on the Internet. And so it makes sense that they came across the same bogus websites that I come across when doing research: The websites that offer programs, incentives, and other options that DON'T EXIST. It is no wonder why many first time buyers are so confused; Even when they do study up and research they are bombarded with misleading, inaccurate, and even blatantly false statements.

Why do some websites and lenders mislead and even lie on their websites?

There are three main reasons I have found these misleading websites exist:

1. To "up-sell" a buyer into something they "qualify for" (As the case in offering SUPER LOW rates)
2. To sell ad space for other businesses (These sites often just get you there in hopes you will click on an ad on their page)
3. To sell a buyer's information to a company that actually is a lender. (A lead generator site)

It is rather simple - they want "the phones to ring" so they can sell people on something. Some websites will pull people in with the right "keywords". Some of these websites will offer just a little information and THEN SELL OFF YOUR NAME AND INFORMATION TO REAL LENDERS, at times without the home buyer having any knowledge of this. Working with these websites is a roll of the dice at best!

Even with the great amount of regulation taking place in the mortgage industry, there are still some screwballs out there. As an experienced lender I can not emphasis the importance of working with a local lender. I will be the first to admit that I have no idea what first time buyer programs are offered in other states (Other than NJ and PA). And I can guaranteeyou that someone outside on New Jersey can not offer you programs that a New Jersey based lender can offer you. (Not even all NJ lenders can offer the same programs, such as the case with many NJ first time home buyer programs.)

When it comes to buying real estate, the phrase often used is location, location, location. Many people don't realize that when it comes to choosing a mortgage company and a loan officer, the phrase location, location, location is just as important.

If you specialize in first time home buyer programs in other states, feel free to contact me. I often meet buyers that I can not help in many other states.

Steve Kappre is a mortgage loan officer in New Jersey. For more info or questions feel free to contact Steve.

• NJ First Time Home Buyer
• NJ Reverse Mortgages
• Purchase, refinance, rehab loans
• Conventional, FHA, USDA, VA, HMFA, First Time Home Buyer, Police and Fire, Live Where You Work, and more

Call direct @ 856-419-3561 | Subscribe to Steve's blog via e-mail

BEWARE: There is a combination that the first time home buyer needs to be aware of. That combination would look something like this ...

The main item of issue here is the short sale or foreclosure. The home buying transaction typically takes 30-60 days. However, when the bank that is holding the seller's mortgage needs to make a decision, on "who, where, when, why" regarding the sale of the home, a buyer can expect to add a few weeks ... or even a few months to the timeline. And that is no exaggeration.

In such situations you could have an attorney for the seller, a negotiator for the short sale, a PMI company evaluating their loss options, a seller that is going crazy and doesn't care anymore ... and the list goes on, with each party adding more time to the equation.

So first time home buyers be prepared. If the home that you are purchasing is a foreclosure or short sale, you may be getting an AWESOME deal on it. And well you can still get an awesome deal, just don't be heart broken or count on the first time home buyer tax credit.

If recieving the first time home buyer tax credit is going to make or break a transaction for you, think long and hard about how things could pan out.

Steve Kappre is a mortgage loan officer in New Jersey. For more info or questions feel free to contact Steve.

• NJ First Time Home Buyer
• NJ Reverse Mortgages
• Purchase, refinance, renovation mortgages
• Conventional, FHA, USDA, VA, HMFA, PHFA, Police and Fire, Live Where You Work, and more

Call direct @ 856-419-3561 | Subscribe to Steve's blog via e-mail

NJ First Time Home Buyers: The Clock is Ticking Again

The real estate industry went through a "buzzer beater" with the first-time home buyer tax credit deadline last November. Title companies were scrambling, this NJ loan officer was working overtime, and attorneys were getting ready to duke-it-out if need be.

Many first time buyers were relieved to hear that the tax credit was extended. Some buyers closed a few days later without an issue. Some closed a few weeks later. And in one situation I was personally involved in, a home buyer was buying a short sale and closed in JANUARY, or two months later.

The current guidelines for the first time home buyer tax credit state that the home buyer has to be under contract by the end of April (April 30th). Buyers also have to settle by the end of June (June 30th).

BUT SOME BUYERS WILL STILL MISS THESE DEADLINES!

And some sellers will miss out as well.

There can be many reasons for this:

• Bad real estate agents
• Bad loan officers
• Unorganized buyers
• Short sales and foreclosure transactions that are mostly dictated by the bank holding the mortgage on the seller's end.

A few months ago, it was cake to close a purchase transaction in 2-3 weeks. These days most contracts are written for 45-60 days, and due to situations outside of a buyers control, they can take significantly longer.

BE PREPARED!! PLAN AHEAD!!

If you have questions feel free to call. Proper planning over the next few weeks may be the difference between a great success and a dreadful let down.

Other NJ First Time Home Buyer links:

Use Your Tax Rebate to Buy a Home

Gloucester County First Time Home Buyer Grant

Use Your Tax Rebate to Buy a Home

New Jersey first time home buyers and home buyers all over listen up! Not only is the government offering incentives for Americans to buy and sell homes, but this Spring you can offer yourself an incentive: Buy a home with your tax rebate money! Some people will go on vacation. And some will buy a new LED flat panel TV.

But the shrewd will utilize this money for something that may just change their life, such as to buy their first home. Here's a quick review of the many first time home buyer "incentives" that are available RIGHT NOW.

• The (up to) $8,000 federal tax credit for buying a home (Must be under contract by April 30th, and settle by end of June)
• Local first time home buyer incentives such as; down payment assistance, reduced down payment requirements, and more. These can be local as in "state" programs, or local as in "county" programs, or even city specific incentive programs. (Contact your local expert for more information).
• Homes are priced lower right now than they have been for years. Most markets are buyers markets.
• Interest rates are still very low. However if history repeats itself, and the government keeps their current stance, mortgage interest rates will not stay this low much longer.

Is Now the Best Time to Buy?

I won't answer that question for you, but now is certainly a great time to buy, and with the option to use your tax rebate to buy a home on top of everything else ...

"We won't know the bottom of the market until it is in the rearview mirror!"

First Time Home Buyer Tax Credit Scenarios

I typically pass off specific tax credit questions to a tax advisor or CPA. So when a Realtor asked me today about a co-signer on an FHA loan, and if the first time buyer still qualified for the tax credit, I thought "yes", but wanted to make sure.

A quick drop by to the IRS site (IRS.gov) and a few clicks and I found my answer. The first time buyer with a co-signer DOES qualify for the tax credit.

For a list of other scenarios that may help buyers understand, check out this link to the First-Time Homebuyer Credit scenarios on the IRS website.

Steve Kappre is a mortgage loan officer in New Jersey with Treasury Mortgage, a subsidiary of Aurora Financial Group. For more info check out:

• NJ First Time Home Buyer, grants, down paymet assistance, and more
• NJ Reverse Mortgages
• Offering all aspects of purchase and refinance mortgages up to and over 100% of the home's value
• Home renovation loans for refinance or purchase mortgages
• Conventional, FHA, USDA, VA, HMFA, PHFA, Police and Fire, Live Where You Work, and more

Contact Steve Kappre directly: 856-419-3561 | Subscribe to Steve's blog via e-mail

Gloucester County First Time Home Buyer Assistance Program: Update

The Gloucester County, NJ first time home buyer grant program is a great option for home buyers looking to purchase in this South Jersey area. More recently, this program has changed. Here is an update on how this great program works;

1. The amount allowed as assistance is $10,000
2. The assistance can be used for closing costs and/or down payment
3. The assistance is provided at closing, not before.
4. UPDATE: A home buyer is now required to receive home buyer counseling, such as that approved by HUD. There are several local areas to obtain this counseling
5. UPDATE: 3%* of the buyers own funds (including gift funds, as in the case of an FHA loan) must be put into the transaction. This means that the 3% can go towards upfront fees, closing costs, or the down payment, or any mix of the three. Be sure to keep all receipts. (*3% of the purchase price)
6. This program is income resricted. The requirements start off at an income cap of $46,000 for a single person, and moves about about $6,000 per household member.

Keep in mind that household income is the factor used for qualifying, therefore if for instance a husband plans to buy a home only in his name, the income of his wife (assuming she lives in the property) will also be factored, and would require that the total household income fit within the guidelines.

The Gloucester County first time home buyer assistance programis one of the best home buying options around. Call Steve Kappre @ 856-419-3561 for more information today.

More information on NJ First Time Home Buyers.

Steve's Fan Page is HOT HOT HOT!!!

Rumor has it that this mortgage guy in New Jersey has one HOT FaceBook business page.

I'm not sold!

Maybe you want to check it out for yourself ...

What,  become a fan ??

I don't know.

Click on the fire and see what all the fuss is about.

It seems no matter how many times you come across this situation as a mortgage lender, and think to yourself, "I can't believe ANYONE would do this" ... there is another person in line ready to make the same foolish mistake! Home buyers, if you think that once you apply for a loan and are approved by a lender that things don't change, and you can do things such as miss payments that need to be made ... you are sorely incorrect.

Consider just a few structured time-lines regarding an approval:

• Credit reports are good for 90 days
• Appraisal (right now) are good for 120 days
• Interest rate locks can be good for 15, 30, 45, or 60 days (typically).
• Items "fixed" on your credit report via supplements may only stick for 30 days. It happens.

And there are a list of other things that can change. Don't forget, buying a home is a big step. Don't tread lightly.

Read on ...

More FEMA Designated Flood Zones - Effective Date 01/20/2010 in my area!

As if we weren't having enough fun already in the industry, FEMA has altered flood zone locations across the country.  Now I don't know about you, but the last transaction I had that required flood insurance nearly blew it out of the water, to the tune of $1,755 a year on top of the $515 the buyers were paying for home owner's insurance. And this was on a home selling for $126,000. $150+ a month is BIG NEWS to buyers at this level, and in their case they didn't know about the flood insurance going into the transaction (that's another story).

Here's chart for my local county. Below is an example of a map from the FEMA site. All pictures are linked to the original, and there is a link at the bottom to go to the FEMA map locater page itself so that you can find your specific area.

Now's the time to start that kayak business you've always wanted to open!

Gloucester County, NJ Listing of Communities Flood Map from FEMA (linked to map menu)

Example Map - Gloucester County NJ - Zoomed In (Linked to main search for Gloucester County, NJ)

Flood Map Locator

---

 

Steve Kappre is a mortgage loan officer in New Jersey with Treasury Mortgage, a subsidiary of Aurora Financial Group. For more info check out:

• NJ First Time Home Buyer Mortgages, grants, down payment assistance, and more
• NJ Reverse Mortgages
• Offering all aspects of purchase and refinance mortgages up to and over 100% of the home's value
• Home renovation loans for refinance or purchase mortgages
• Conventional, FHA, USDA, VA, HMFA, PHFA, Police and Fire, Live Where You Work, and more

Contact Steve Kappre directly: 856-419-3561 | Subscribe to Steve's blog via e-mail

Anybody looking to refinance in Gloucester County to remodel or update their home may find this article interesting and useful. Although our area of Gloucester County and South Jersey may value different upgrades a little differently, this list is nonetheless useful to reference. If you have specific questions regarding upgrades, and are having a hard time deciding, contact your favorite local Realtor. And if you don't have one, let me know. I'll send you to someone that knows your area well.

One other option worthy of mention is the 203k rehab/renovation loan, which allows a home owner/home buyer to finance the purchase/refinance of the mortgage along with the renovation costs.