My New Blog

We discussed shopping for a home, how to pick a real estate professional and the pre-approval process.  Today, we are going to speak about the loan process and why it could take a full 30 days for you to own your home.

Let's assume you have an agreement of sale signed and dated.  The next thing you need to do is contact the loan officer at Allied Mortgage Group.   We will ask you to update all your information that you provided us for the pre-approval. Besides the updatd information, we will need a copy of the canceled checks (front & back) you gave for the earnest funds (deposit) when you signed the agreement of sale.  We will update the information on the application and meet with you in person to sign the loan application and all the disclosures.   The processor at Allied Mortgage Group will order the appraisal for the property and inform the title company we are the mortgage lender handling the financing.  Once we have all the documents in the file that is needed, the file is sent electronically to the underwriting department.  The head underwriter assigns the file to a underwriter.  The underwriter is responsible to make sure the loan abides by the laws and guidelines issued by several entities.  These entities are Fannie Mae and Freddie Mac, VA, Federal Housing Agency (HUD), and the wall street investors. 

The underwriter gives a conditional approval and issues the mortgage commitment letter.  On the mortgage commitment letter the underwriter issues additional conditions of what you, the borrower, is 1. either missing or 2. needs additional information in order to fully approve the loan. The conditions are, what we call, the laundry list of items.  Once you obtain everything that is asked for it can take anywhere from 24-48 hrs for the underwriter to approve the conditions.  Sometimes, the underwriter sees conditions and it may evoke more conditions or questions concerning what he or she has in front of them.  Many times it is a simple explanation, whereas, it can wreak havoc on the entire loan process and the mortgage denied.  In this case scenario we are perfect.  The underwriter likes the loan and approves it. 

The loan now approved is sent to the closing department.  The closing department issues the closing documents which is given to the title company.  The title company must send to the closing department a preliminary HUD 1 or Settlement statement.  This statement breaks down the entire charges for both seller and buyer.  Of course we are merely interested in the buyers side of the transaction.  Once the preliminary HUD is approved the closing department sends the closing instructions and documents to the title company.  The closing department electronically sends the funds to the title companies bank account. 

Now we are at the table and all papers are signed and the title clerk says "Congratulations". You are given the keys to the house.  Your Allied Mortgage Loan Officer congratulates you and puts all your mortgage papers in nice folder. 

I hope this answers all your questions. Visit our web site www.loansbyallied.com

Yesterday, we discussed credit and the reasons why you should contact a mortgage lender such as Allied Mortgage Group before contacting a real estate professional or realtor.  Today, we are going to discuss how to choose a realtor. 

Once you are pre-approved for a mortgage now it is time to call a Realtor and make an appointment. At this appointment you will interview them as if they had just applied for a job with you.  Why should you do this? Great question.  The reason to interview a realtor is to make sure they are a good fit for you. Not every realtor is a good fit and will have your best interest.  You want to ask questions such as "What areas are they most familiar with?", "Are they mostly a listing agent versus a buyers agent?", "Will you email me listings instead of calling", "How many houses should I look at before making a decision?", "What designations do you have and what associations do you belong to?" 

The reason why you want to know the type of designations has to do with their continuing education.  The more educated a Realtor is the better they can serve you.  Not every Realtor is a member of the National Association of Realtors.  This association is an important credential.  They have their own certifications and every member must abide by the code of ethics.  You can call the associations they belong to and research the prospective real estate professional to see if there are any complaints against them, ask how many homes they have sold or listed.  Once you are satisfied with their answers and their professionalism then you and the realtor can begin the relationship. This is where you hand them your pre-approval letter from Allied Mortgage Group. 

During the home search process I recommend for you to carry a small notepad around to make notes on every house the realtor shows you.  This way you do not get confused. Also, on a separate sheet make 2 columns.  The first column should be titled "What I Like About the House", and the 2nd column should be titled "what I do not like about the House".  This will help you to assist the realtor to know what in each home what you liked the best and what you want to stay away from.  This narrows down the amount of houses to see.

During the home search you will be enticed to look at open houses.  Mind you there is nothing wrong with looking at an open house. Take your note pad with you.  When you enter the open house there is a Realtor who will be there showing the home.  When signing in the sign-in book make sure you put your realtors name down to inform the sellers realtor you are represented by a realtor already.  Otherwise, they will call you and try to gain your business to sell that particular home.  Remember, these realtors represent the seller and are looking at their self-interests.  It is hard to be a dual agent. Some states have special contracts for buyers and sellers to sign that state the selling agent is a dual agent representing the buyer. This is why it is best to have another independant realtor represent you. 

Once you have found a house your realtor will help you draft a bid for the home of your dreams. 

Tomorrow we shall discuss what happens from the bid to the loan process. 

Everyone asks the same questions when it comes to buying a home. The tips I am going to provide should help alleviate some of your questions.  If we miss anything just call or email and we be happy to answer your questions more in details.

When looking for a home the first question should be "how good is your credit history". Basically, since you pay the bills you should know if you have been late on bills or have collections and judgements. The way to find out is to apply through annual credit report.com. If you want your credit scores it will cost you. However, you can obtain your credit scores at www.loansbyallied.com/creditscore for only $17.96 single or as a couple $29.36.  If you have any derogatory information that you feel is incorrect you need to dispute the information. Misinformation can hurt your credit scores by at least 30 points if not more.  

The next step is to look at your finances. Look at your savings in all accounts.  These accounts are savings, checking, 401K's, IRA's, personal stock funds.  Do you have at least $10-15,000 saved?  The reason for the larger amount is to have enough money for 2-3 months worth of mortgage payments including your down payment, home inspections, pest inspection, application fees and closing costs.  Once you have calculated your savings and available funds now its time to start looking for a home of your dreams.  Before you contact a realtor or other real estate professional contact a Mortgage Banker such as Allied Mortgage Group.  At Allied Mortgage Group, we can get you pre-approved and not pre-qualified like so many of our competitors hand out.  When meeting with your professional loan officer at Allied Mortgage Group, bring the following items: the last 2-yrs of W-2's from all employers, the last 2-3 months including current bank statements with all the pages (blank ones included), 1 month of current paystubs, and letter of explanation for any derogatory accounts on credit history or excessive credit inquiries.  Being pre-approved is like having your personal banker in your back pocket.   You have buying power! With the pre-approval in hand now you can look for a realtor, who will work for you.

Next we will look at the different types of realtors and how to shop for a home of your dreams.  

Today's blog is from the Wall Street Journal concerning credit cards and the new law.  To learn more about the new credit card law and how it will affect you click on the link below.  To check your credit history go to www.loansbyallied.com/creditscore

http://tinyurl.com/yk92ks5

If you are confused by the recent events contact us at 215-355-5626. We will be more than happy to go over the new law and how it can affect you and your credit score.

The storm of 2010 is causing lots of MOLD

Mold is a more serious problem than most folks realize. Rodents and Insects are attracted to mold, where there is mold there’s water so depending on the extent of the problem, home Mold Removal and Pest Management can be easy or it could be a major overhaul.

A Little Mold On The Tiles

We all get some mold in trouble areas like kitchens and bathrooms. It seems harmless enough, but it’s got to be cleaned up right away. This orange or green mold that grows on surfaces is the easiest to clean up. Try using soap or a simple mold cleaner from the store. This kind of mold is not nearly as harmful as its black cousins, but you should still take care of it as soon as it appears.

Time For Some Deep Cleaning

For the black mold type, you have to do a more serious cleaning. Black mold is highly toxic, so you should always wear a face mask and gloves, and seal off the area where the mold is growing.
Try scrubbing with soap and water first. Keep the mold from drying out so that the spores don’t become airborne. If it won’t come off with soap and water, try something heavier. For some surfaces, bleach is good, but be careful around carpets and other fabrics. Bleach is toxic to inhale, so you can try vinegar or hydrogen peroxide if you want something gentler.
The best places to buy mold removal products are janitorial supply stores. They will have heavy duty stuff that is tough but also safe to use.

Mold Has Colonized The House

When there is a serious mold infestation in your walls, floors or ceilings, major work will have to be done. All moldy materials will have to be removed and wrapped in double trash bags. The whole area will have to be disinfected. For this type of mold removal, you might want to call the experts.
Home mold removal sometimes needs to be done, but you can prevent further problems by keeping your home well ventilated and free of moisture.
Some types of mold are relatively harmless, while others can cause serious health problems for you and your family. Mold identification is the first step in deciding whether you’ve got a serious mold problem or not.

Common Household Mold

The most common household mold is aspergillus. It can come in about any color of the rainbow, and can grow nearly anywhere. For people with weak immune systems, this mold can be dangerous. For most people, it causes minor irritation like coughing, sneezing or other cold-like symptoms.

Black Mold

This is the mold you really want to be careful with. Black mold, or stachybotrys mold, is highly toxic. This is the stuff that causes cold-like symptoms, allergic reactions, fatigue and headaches. If small kids are exposed to it over time, it can cause lifelong asthma problems. For older people and others with weak immune systems it can be deadly.
Because black mold is dangerous, it should be cleaned and removed immediately. You can do it yourself but it’s a big job and most people prefer to call a professional.

Cladosporium

This mold comes in lots of different colors, but is usually grey, brown, blue or black. It can grow just about anywhere. It isn’t as dangerous as aspergillus. Indoor cladosporium causes allergic reactions like sneezing, runny nose and coughing. It rarely causes anything worse than that partly because it is usually found in low concentrations.

Food Molds

Penicillium is the mold you most often find on food. It’s the blue or green mold on bread, cheese, and other stuff that’s been in the back of the fridge for centuries. All moldy food should be thrown away immediately, and you should check other food around it for penicillium as well.
Some foods, especially cheeses, are prone to developing mycotoxic molds. These molds are very dangerous and should not be eaten. It takes a laboratory to identify this type of mold, so it is best to simply dispose of all moldy foods.
Whether toxic or not, all mold should be cleaned up and removed quickly. Mold identification is just the first step.
The good news is that most mold infestations in your home or office can be prevented with routine maintenance and moisture control. Here are a few suggestions:

1. Make sure that your Heating, Ventilation, and Air-Conditioning (HVAC) system's filter stays clean and use a filter with a MERV 6 rating or greater. This helps to cut down on the particulates flowing through your HVAC system; thereby reducing the likelihood that this system will be a source of poor indoor air quality.

2. Check to make sure there are no leaks in the ductwork a part of your HVAC system. Leaks can reduce air flow and pressure, having an effect on the ventilation of your home or office. Ventilation is a key way to control humidity and air pollution such as Carbon Dioxide.
3. Check frequently for leaks in plumbing (under sinks, around the toilet, around the bathtub and showers, and look for staining in ceiling or wall areas, attics and crawl spaces).

4. Make sure that gutters stay clean and are routed away from the structure so that there is no pooling of water around the foundation. The grading of the ground around your home or office should be frequently checked to eliminate pooling around the foundation as well.

5. Use a vacuum cleaner with a HEPA (High Efficiency Particulate Air) filter. This will allow you to clean without the exhaust of the vacuum cleaner aerosolizing particles such as mold, bacteria, and some other allergens into the air.

6. If you have the unfortunate experience of having water damage in your home or office, make sure to process the damage quickly and completely. Water damaged environments can be impacted by mold and other microbes (like bacteria), in some cases, as quickly as 24 - 72 hours. That doesn't necessarily mean you will see mold growth that soon, but the indoor air quality could be compromised by mold or bacterial activity. 

About the author of today's blog.

 Walters Exterminating has been in business for over 30 years.  Nolan Walters has been involved in the business since he was in high school.  This is a family business which has grown and thrived.  Walters Exterminating can be reached at 215-947-8818 or via the web site www.bugwalters.com

In the last few years, there has been a dramatic change to the way American businesses are doing business. The government is keeping a close watch on those corporations that have excessive pay structures for their executives. Real estate in the last 2-years has decreased in value. Many people are in foreclosure or will be going into foreclosure. Experts and Congress are blaming the mortgage industry for placing borrowers in risky loans. Allied Mortgage Group is conservative and would never place borrowers in risky loans.  They claim borrowers didn’t know what type of loan they had applied for. Congress said the Good Faith Estimate and settlement paperwork needed to change. The loan package you now get at the settlement table is different. It can take longer to sign the closing documents at the table. The big change is how the Settlement Statement (HUD 1) looks.

The Settlement Statement is now 4 pages instead of 2 pages. The first page of the Settlement Statement is the Summary of Transaction. This page has not changed. The Summary of Transaction shows both the seller and buyer’s total costs and fees. The breakdown of the fees is on the 2^nd page. The 2^nd page is divided into sections by numbers starting with 700 and ending with 1300. These numbered sections correspond to the numbered sections on the Good Faith Estimate that is given to the borrower at the time of the application. Starting with section 800 the origination charge includes origination, discount points, and other fees bundled together unlike the old Settlement Sheet. The new Settlement Sheet cites where you can find the charges on the Good Faith Estimate such as the application fee. The old Settlement sheet list all fees and cost. The 3^rd page of the Settlement Sheet compares the cost listed on the Good Faith Estimate with the Settlement actual costs. Congress wants the lenders, such as Allied Mortgage Group, to be accurate on the Good Faith Estimate. This is confusing to you, the borrower as well as to us. Most loan officers list higher fees on the Good Faith Estimate since fees could change such as the origination and discount fees. At Allied Mortgage Group, our loan officers always try to be accurate and precise with the fees so there are no discrepancies at closing. The bottom portion of the 3^rd page is the loan terms. The 4^th page is the signature page.

The mortgage industry has had many changes in regulations and laws over the years. The New Year has seen more changes than in previous years. At Allied Mortgage Group we keep up with the changes to assist you in understanding the changes. We believe in educating our customers. This is why so many of our clients stay with us.

To get pre-approved click Apply Now.

Purchasing a home is the one big financial decision a person will make in their lives. For some people they will purchase more than 1 home in their lifetime. No matter how many times a person decides to sell and buy a home there is a financial responsibility that goes with owning a home.

Before purchasing a home one must look to see how much cash is in the bank for down payment, closing costs, home inspections, and other costs that may come up after you get the key to the home. I will discuss the finances that are associated with owning a home. The down payment on a home can range from 3.500% to 20% depending on the type of program you and the Allied Mortgage Group mortgage professional decided on which is the best loan program is for you. The realtor will expect you to put money down when you sign the Agreement of Sale and then 14 days after signing the Agreement of Sale the second half of the deposit will be due. This could range from $500-$2,000. The higher amount could be higher if you inform the realtor you want to put more down. The remainder of the down payment will be collected at the closing table. It is recommended to have a home inspection that can cost anywhere from $350-$500. At the closing table a certified check will be due. If you have a seller assist, where the seller is going to pay some of your closing costs, along with the money you had already put down at the time of signing the Agreement of Sale will be deducted from the closing costs. The Good Faith Estimate, which the Allied Mortgage Group mortgage professional provided to you at the time of the application, shows the settlement charges. The Allied Mortgage Group mortgage professional will inform you the exact amount of how much to bring to the table.

As a new home owner you would want to make changes to the home. These changes could range from some minor repairs to major work. These changes could include hanging new drapery or window shades, painting, changing carpets, to replacing the entire kitchen and/ or bathroom. These changes can cost anywhere from $20 to $10,000 or even higher.

Once you have fully settled into your new home you can now relax; Right? Wrong. The upkeep never stops. Here is a sample timeline:

Fall: Rake the leaves and clean up the yard. Drain the pool for the winter.

Winter: Shovel and salt to keep steps and sidewalks clear.

Spring: Plant new shrubbery and plants, or start a garden. Also, you need to clean out the gutters or repair any cement walkways, put a new roof on and other repairs that you may want. Prepare pool for summer.

Summer: Mow lawn and trim hedges. Relax by the pool.

Pay taxes and homeowners insurance on time or it may be included in your monthly mortgage payment. This is your domain and all the hard work is earned that you can say you did it yourself.

Owning a home is priceless.

2009. Wow! What a year it has been.  The housing market in the first half was struggling to get back on its feet.  The stock market was up and down. Mostly down. Terrorist activity still active in various parts of the world.  Pirates still hijacking freighters for ransom. Even under the watchful eye of several naval vessels from various countries.  It is quite embarrassing for the few countries of power to have a few pirates take a ship over when their navy is guarding those ships closely for hijacking activity. 

President Obama ended his first term on a high note. We have seen passage in the Senate and resent to the House of a healthcare bill that will overhaul the current system.  This will give way for those, who cannot afford health insurance and on public assistance.  It will benefit the seniors,and those that are just barely making minimum wage.

Back to the housing industry.  In the last quarter of 2009 housing sales were up compared to a year ago. This is due in part interest rates were historically low and the stimulus plan the Obama administration put in place for first time homebuyers.  The second part of the housing stimulus package will now include current homeowners who are looking to move.  They will be able to claim $6,500 credit on their tax returns in 2011.  First time homebuyers will still be able to get $8,000. 

Foreclosures will be slightly down this year in 2010. Lenders are trying to appease the Obama administration for helping those that are struggling to pay their mortgage with lower payments.  So far these lenders are behind in the goals the Obama administration has set. 

We are going to see an increase in refinances this year.  People's expectations for the new year is on a high note. 

So, instead of just sitting around waiting to see what will happen in 2010, get a pen and paper or go into Word on your computer and write out your goals or resolutions for 2010.  After you have completed writing your goals or resolutions email them to everyone you know. Therefore, those that have your goals or resolutions will help you stay on track.  Let's finish 2011 stronger than 2010 and have a prosperous and successful 2010. 

Next week's blog will be about housing finances. 

In 2010, the mortgage industry, for the first time in 20 or more years there will be a change to the Good Faith Estimate (GFE).  Congress asked the Federal Housing Agency (FHA) to make changes to the Real Estate Settlement Procedures Act known as RESPA. 

 The current economic conditions in the housing industry led to these changes. Everyday on the news we hear how bad the housing market is with homeowners going into foreclosure and the banks are modifying mortgages to save a few homeowners from losing their homes. Some of these borrowers were put into loans considered extremely risky, volatile and with higher payments.  When some adjustable loans adjusted people were forced to refinance. Unfortunately, the property values were much lower leaving people owing more than what the property was actually worth. This left alot of homeowners out in the cold to the point where they could not afford the mortgage.   

The changes that were made to the Good Faith Estimate are noticably drastic.  Allied Mortgage Group will give 2 distinct scenarios with different closing costs showing higher settlement costs or a higher interest rate with lower closing costs. The other change is certain services can be shopped by the borrower.  Your Allied Mortgage Group Loan professional will inform you what services can be shopped around for.  We always think of the customer first and try to save you as much money when it comes to third party charges. 

Understanding your loan is important to us. We strive to make sure that you understand all the terms upfront before you go to settlement whether it is a refinance or purchase.  If you do not understand the terms of the loan or any other part just call us anytime.  Apply Now!  It is fast, simple and secure.  One of our loan professionals will get back to you within minutes after you have finished filling out the application.  We will be able to get you pre-approved.  To find out your credit score before applying click here. 

Have a great holiday and a safe one! 2010 will be a better year for everyone.

It is that time of the year-Christmas with the malls buzzing once again, people wrapping gifts, and yes, the smell of a fresh live Christmas tree in the living room of people's houses.  It is also a time for tragedy caused by not properly caring for the Christmas trees. With all the twinkling lights and beautiful decorations on the tree there are more fires every year because someone forgot to properly take care of the tree. Below is instructions on caring for your Christmas Tree by the National Christmas Tree Association:  

When a Christmas tree is cut, over half of its weight is water. With proper care, you can maintain the quality of your displayed trees. Below are a number of tips relating to the care of displayed trees: Displaying trees in water in a traditional reservoir type stand is the most effective way of maintaining their freshness and minimizing needle loss problems. Make a fresh cut to remove about a 1/2-inch thick disk of wood from the base of the trunk before putting the tree in the stand. Make the cut perpendicular to the stem axis. Don't cut the trunk at an angle, or into a v-shape, which makes it far more difficult to hold the tree in the stand and also reduces the amount of water available to the tree. Once home, place the tree in water as soon as possible. Most species can go 6 to 8 hours after cutting the trunk and still take up water. Don't bruise the cut surface or get it dirty. If needed, trees can be temporarily stored for several days in a cool location. Place the freshly cut trunk in a bucket that is kept full of water. To display the trees indoors, use a stand with an adequate water holding capacity for the tree. As a general rule, stands should provide 1 quart of water per inch of stem diameter. Devices are available that help maintain a constant water level in the stand. Use a stand that fits your tree. Avoid whittling the sides of the trunk down to fit a stand. The outer layers of wood are the most efficient in taking up water and should not be removed. Keep displayed trees away from sources of heat (fireplaces, heaters, heat vents, direct sunlight). Lowering the room temperature will slow the drying process, resulting in less water consumption each day. The temperature of the water used to fill the stand is not important and does not affect water uptake. Check the stand daily to make sure that the level of water does not go below the base of the tree. With many stands, there can still be water in the stand even though the base of the tree is no longer submerged in water. Drilling a hole in the base of the trunk does not improve water uptake. Use of lights that produce low heat, such as miniature lights, will reduce drying of the tree. Always inspect light sets prior to placing them on the tree. If worn, replace with a new set. Do not overload electrical circuits. Always turn off the tree lights when leaving the house or when going to bed. Monitor the tree for freshness. After Christmas or if the tree is dry, remove it from the house. Go to www.realchristmastrees.org and type in your ZIP code to find a recycling program near you. Never burn any part of a Christmas tree in a wood stove or fireplace. If you get a tree with roots attached, either in a pot or burlap, please read these suggestions: The adaptability of the species should be considered. Many species are shipped outside of their natural area and may not be adaptable to other areas. Check with a reliable nursery or extension forester. Keep in mind that Living Trees are VERY heavy and bulky. A six foot tall balled and burlapped tree will weigh as much as 250 pounds. The tree should be stored in an unheated, sheltered area such as a garage or porch, out of the wind and sun. Do not expose the tree to freezing temperatures at any time. The tree will need adequate water. The root ball or soil should be kept slightly damp but not flooded. Wrap the root ball of a balled tree in plastic or place in a tub while it is in the house. Live trees may be decorated, but with care. If lights are used, they must not give off any heat. Do not remove the tree directly from a warm house out into freezing temperatures. Instead, move to a sheltered area first for several days. If the ground is unfrozen, the tree may be replanted. The spot to be dug should be mulched to prevent freezing. Plant as soon as possible. Do not remove the burlap and strapping (unless it is plastic). This keeps the root ball solid and secure. In the instance of a plastic cover, cut the cord and roll down the plastic at least half way prior to planting. Tap the tree container of a potted tree and remove prior to planting. Do not attempt to remove soil from the root system. Earth removed from the original hole should be backfilled around the root ball. Mulch heavily over the top of the planted root ball to prevent it from freezing. Water only as needed: a flooded tree may not survive. Stake the trees to prevent wind tipping or damage during the first growing season. Prepared by Dr. Gary Chastagner and Dr. Eric Hinesley Edited by the Scientific Research Committee of the National Christmas Tree Association

Please print this out and give it to your loved ones, who have a real Christmas trees and let's prevent fires on such a joyous holiday. 

 Merry Christmas! Have a wonderful and safe New Year. 

For more information on refinancing go to www.loansbyallied.com or call us at 215-626-3833