The Mortgage Guys

Open lines of credit, balances and how they affect your score

One misconception most people believe is that if you have a credit line, the best thing to do is to pay it off and close the account. That couldn’t be farther from the truth. The fact is, that that exact misconception keeps a credit score down and prevents you from obtaining new credit rather than affect your score positively.

The way bureaus grade you, or the way your score is compiled is by your ability to make payments on a monthly basis. So if you pay off a credit card(s) and close the account, the bureaus will look at your account as a person that may be having problems maintaining current balances. If someone shows a lack of ability to pay it is usually due to loss of employment or something along those lines. So what happens is the score will decrease as months go by that you don’t have any activity or a significant decrease in activity.

Your most advantageous move would be to maintain low balances if possible below $50 balance. If maintaining account balances that low is impossible at the time the next best thing is keeping your balance below half or your limit. If balances are kept up near the limit for multiple months the credit score will begin to decrease since to the credit bureaus this will appear as a desperation to keep afloat and living off of credit to survive. Again, loss of  employment is a common cause someone would use credit for everyday expenses and not pay it off at the end of the month. So in order to show lenders this person is a high risk the score will come down.

For more information regarding credit call or email at 480.344.3678 or email jesus.perez@academy.cc

The tax incentive is over, now what?

If you were eligible for the tax incentive of up to $8,000 for purchasing a home under President Obama’s plan and did not get an accepted offer from a seller by April 30, 2010 then you have missed the incentive but you are not alone. Many people speculate that there might be another type of plan in the future. But for now all it is is just that; pure speculation.

So you missed the tax incentive, things could be a lot worse. The price of homes could be that of what they were in 2005. What I’m saying is that although there is not a tax incentive at this time it is still a GREAT time to buy. We are closing loans for  our borrowers for homes recently puchased for as low as $45,000 or great deals of homes in the $300,000 plus range. So whatever your budget there has not been a better time to buy than now. Down payment for FHA loans are still only 3.5%. There is talk that FHA may raise that to 5% but for now it is still only 3.5%. Rates are remaining low and recently the Feds decided to keep them as they are.

We are seeing some competition out there from the contracts we’ve received from our borrowers. One way we can monitor that is we are having appraisals come in significantly below contract price in some cases and have even had buyers pay over appraised value. That also tells us that there are still great values out there to be had. If a buyer believes he/she has such a great deal that they are willing to pay over the appraised value, well that tells us it was too good of a deal to pass up.                  So although the President’s incentive is gone, there is still an incentive to buy now! That incentive is getting a great deal and a low fixed rate and it lies before you if you are looking to take that step.

Feel free to fill out our online application at www.academy.cc/jesusperez or www.academy.cc/edwinsolis  We will contact you shortly therafter to discuss your options.

Free credit report and monitoring!

With identity theft at an all time high, you can not risk not knowing if someone is running off with your identity only to leave you in a tragic mess.

We believe in superior customer service not only helping you with your mortgage needs. We can provide a free service monitoring. With this free service we will pull your credit from one bureau every 4 months. We will call you to discuss any changes and send you a copy of your report.

In  years of providing service to people with mortgage needs we’ve come across customers with damaged credit due to identity theft, that if  caught early it could have made a world of difference for our prospective customer. We’d like to help prevent this from happening to you.

Call us to see how we can help you keep a close eye on the activity happening on your credit report.

Edwin Solis 480-201-0461 NMLS# 242330

Jesus Perez 480-344-3678 NMLS# 249677

Academy Mortgage  BR BK #0115484 

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5304 E. Southern #101 Mesa, AZ 85206 

Benefit to Those in Financial Distress

Of Potential Benefit to Those in Financial Distress WASHINGTON (Oct.24, 2008) — Veterans with conventional home loans now have new options for refinancing to a Department of Veterans Affairs (VA) guaranteed home loan. These new options are available as a result of the Veterans’ Benefits Improvement Act of 2008, which the President signed into law on October 10, 2008.

“These changes will allow VA to assist a substantial number of veterans with subprime mortgages refinance into a safer, more affordable, VA guaranteed loan,” said Secretary of Veterans Affairs Dr. James B. Peake. “Veterans in financial distress due to high rate subprime mortgages are potentially the greatest beneficiaries.”

VA has never guaranteed subprime loans. However, as a result of the new law VA can now help many more veterans who currently have subprime loans.

The new law makes changes to VA’s home loan refinancing program. Veterans who wish to refinance their subprime or conventional mortgage may now do so for up to 100 percent of the value of the property. These types of loans were previously limited to 90 percent of the value.

Additionally, Congress raised VA’s maximum loan amount for these types of refinancing loans. Previously, these refinancing loans were capped at $144,000. With the new legislation, such loans may be made up to $729,750 depending on where the property is located.

Increasing the loan-to-value ratio and raising the maximum loan amount will allow more qualified veterans to refinance through VA, allowing for savings on interest costs or even potentially avoiding foreclosure.

Originally set to expire at the end of this month, VA’s authority to guaranty Adjustable Rate Mortgages (ARMs) and Hybrid ARMs was also extended under this new law through September 30, 2012. Unlike conventional ARMs and hybrid ARMs, VA limits interest rate increases on these loans from year to year, as well as over the life of the loans.

Since 1944, when home loan guaranties were offered with the original GI Bill, VA has guaranteed more than 18 million home

loans worth over $911 billion. This year, about 180,000 veterans, active duty servicemembers, and survivors received loans valued at about $36 billion.

For more information veterans may call VA at 1-877-827-3702

8 thousand tax credit first time homebuyers

Time is running out. Start now to take advantage of this awesome opportunity!

Property must be purchased by Nov 30, 2009 only 4 months left to do go. Get qualified and start shopping for homes today!

VA Loans

This is a post about VA loans