This program is designed to assist low to moderate income 1st time homebuyers with little down through a partnership through our Bank.
- Program is open to all 1st time buyers or anyone that does not own other property
- No geographic restrictions
- Underwritten to FHA standards
- Maximum income level of $73,380
- 6% typically needed for closing cost contribution
Don't let your 1st time homebuyers be discouraged and don't trust your buyers to less experienced Loan Officers. Call or email today for more information! Please give me a call if you have any financial questions or if you need a second opinion on a loan scenario. If you are calling after hours or on weekends, please call 480-225-2987 for immediate pre-qualifications.
Jon Tobias Loan Officer
http://www.askthelendingadvisor.com/
http://us.mc655.mail.yahoo.com/mc/compose?to=jont@novahomeloans.com
Wednesday, October 29, 2008
Fed cuts rates again
Fed cuts benchmark rate by a half-point as it continues to fight the ongoing crisis in the credit markets.
NEW YORK (CNNMoney.com) -- The Federal Reserve cut a key short-term interest rate by a half-percentage point Wednesday and expressed continued worries about the damage being done to the economy by the ongoing crisis in the financial and credit markets.
The rate cut put the central bank's federal funds rate at 1%. That matched the lowest level for this overnight bank lending rate ever -- the last time it was at 1% was from June 2003 to June 2004.
Investors had been expecting a half-point cut and some were betting that the Fed would even cut rates by three-quarters of a point to 0.75%.
The Dow Jones industrial average, which had been higher ahead of the Fed's decision, turned lower shortly after the announcement.
The fed funds rate is used to set rates for a wide variety of consumer loans, including home equity lines and credit cards, as well as for many business loans. The lower the rate, the more the Fed hopes to spur economic activity.
The Fed said in a statement that it was concerned about the drop-off in consumer and business spending due disruptions in the credit markets and warned that the economic slowdown is likely to get worse.
"The intensification of financial market turmoil is likely to exert additional restraint on spending, partly by further reducing the ability of households and businesses to obtain credit," the central bank said in its statement.
This is the ninth time that the central bank has lowered rates since September 2007 in an effort to deal with the problems in the U.S. economy and credit markets. The Fed also lowered its discount rate by a half-percentage point to 1.25%. That is the rate at which it lends directly to banks and Wall Street firms.
The Fed's last cut was an emergency half-point reduction on Oct. 8. Six other central banks around the globe also lowered rates that day in a coordinated move. The European Central Bank and the Bank of England are scheduled to meet next on Nov. 6.
While rate cuts are traditionally the key tool the Fed uses to stimulate the U.S. economy, it has had to take other steps to address the current credit crisis.
The Fed has loaned hundreds of billions of dollars to banks through a new lending facility and is starting to loan money directly to major businesses by purchasing commercial paper, which is what some banks and businesses use as their primary method to fund day to day operations.
In its statement, the Fed also appeared to concede that these actions would not lead to an immediate return of economic growth. The Fed projected improved credit markets and a return of moderate growth "over time." And it warned that "downside risks to growth remain."
NEW YORK (CNNMoney.com) -- The Federal Reserve cut a key short-term interest rate by a half-percentage point Wednesday and expressed continued worries about the damage being done to the economy by the ongoing crisis in the financial and credit markets.
The rate cut put the central bank's federal funds rate at 1%. That matched the lowest level for this overnight bank lending rate ever -- the last time it was at 1% was from June 2003 to June 2004.
Investors had been expecting a half-point cut and some were betting that the Fed would even cut rates by three-quarters of a point to 0.75%.
The Dow Jones industrial average, which had been higher ahead of the Fed's decision, turned lower shortly after the announcement.
The fed funds rate is used to set rates for a wide variety of consumer loans, including home equity lines and credit cards, as well as for many business loans. The lower the rate, the more the Fed hopes to spur economic activity.
The Fed said in a statement that it was concerned about the drop-off in consumer and business spending due disruptions in the credit markets and warned that the economic slowdown is likely to get worse.
"The intensification of financial market turmoil is likely to exert additional restraint on spending, partly by further reducing the ability of households and businesses to obtain credit," the central bank said in its statement.
This is the ninth time that the central bank has lowered rates since September 2007 in an effort to deal with the problems in the U.S. economy and credit markets. The Fed also lowered its discount rate by a half-percentage point to 1.25%. That is the rate at which it lends directly to banks and Wall Street firms.
The Fed's last cut was an emergency half-point reduction on Oct. 8. Six other central banks around the globe also lowered rates that day in a coordinated move. The European Central Bank and the Bank of England are scheduled to meet next on Nov. 6.
While rate cuts are traditionally the key tool the Fed uses to stimulate the U.S. economy, it has had to take other steps to address the current credit crisis.
The Fed has loaned hundreds of billions of dollars to banks through a new lending facility and is starting to loan money directly to major businesses by purchasing commercial paper, which is what some banks and businesses use as their primary method to fund day to day operations.
In its statement, the Fed also appeared to concede that these actions would not lead to an immediate return of economic growth. The Fed projected improved credit markets and a return of moderate growth "over time." And it warned that "downside risks to growth remain."
Tuesday, October 28, 2008
Weekly Rates & Market Commentary From Jon Tobias
A Message from Jon Tobias
Well it was another volatile week on Wall Street. Stocks tumbled Friday with the Dow down 312 points, or 3.6%, to 8,379, its lowest close since April 2003. The Dow, S&P 500 and Nasdaq all dropped toward their intraday lows of Oct. 10, their lowest levels of the year. But, the good news is none fell below the 2008 low, a possible signal of support. At the same time, oil prices crumbled, falling 5.4% to $64.15 a barrel in New York, its lowest close since May 2007. This will continue to help us at the pump! The Fed will meet Tuesday and Wednesday and may announce a rate cut at the meeting's close.
Now some goods news, existing-home sales jumped to a 5.18 million annual rate, a 5.5% increase from August's unrevised 4.91 million annual pace. Though the sales levels are still deeply depressed from 2006 highs, the uptick shows that buyers are taking advantage of lower prices in many markets, especially in the West. Based on the sales rate, the inventory of unsold homes dropped to a 9.9-month supply, down from the 10.6-month supply seen in August.
Jon Tobias Loan Officer
Now some goods news, existing-home sales jumped to a 5.18 million annual rate, a 5.5% increase from August's unrevised 4.91 million annual pace. Though the sales levels are still deeply depressed from 2006 highs, the uptick shows that buyers are taking advantage of lower prices in many markets, especially in the West. Based on the sales rate, the inventory of unsold homes dropped to a 9.9-month supply, down from the 10.6-month supply seen in August.
Jon Tobias Loan Officer
Monday, October 27, 2008
The Art of Negotation
Negotiation can be a complex matter and all transactions are unique. Both sides--buyer and seller--want to have a favorable outcome, or at least gain a fair balance of interests. In the usual case there is a bit of bluff, some give-and-take and neither party gets everything they want.
So how do you develop a strong bargaining position, one that will help you get the most from a transaction? Experience shows there are five basic keys that will determine who wins at the negotiating table.
These (5) elements are key to winning the negotiation between buyer and seller.
1. What Does the Market Say?
Know (read, interpret, study, understand) the Market. Why is it a good time to buy or sell?
At various times we're in a "buyers" market, a "sellers" market or a market where supply and demand are roughly equal. If possible, you want to be in the market at a time when it favors your position as a buyer or seller.
Because all properties are unique, it is possible to buck general trends and have more leverage than the marketplace would seem to allow. For instance, if you have a property in a desirable neighborhood with few sales, you may be able to get a better deal than elsewhere. Or if you're a buyer who can quickly close, that might be an important negotiating chip when dealing with an owner who just got a new job 500 miles away.
Knowing the other side’s main reason for buying or selling is a negotiating advantage.
2. Who Has Leverage?
If you're on the front page of the local paper because your business went bust--and the buyer knows it--you have less clout in the bargaining process. Alternatively, if you're among six buyers clamoring for that one special property, forget about dictating an agreement--the owner can sit back and pick the offer that represents the highest price and best terms.
Know the motives (purpose, intention) of both positions. What’s your bargaining power (tool)?
3. What are the Details?
A lot of attention in real estate is paid to transaction prices. This surely makes sense, but the key to a good deal may be more complex.
Consider two identical properties that sell on the same day for $275,000. The houses are the same, the sale prices are the same, but are the deals the same? Maybe not. For instance, one owner may have agreed to paint the property, replace the roof, purchase a new kitchen refrigerator, and pay the first $5,000 of the buyer's closing costs. The second owner made no concessions.
In this example, the first house was actually sold at discount--the $275,000 purchase price less the value of the roof repairs, closing credit and other items. If you're a buyer, this is the deal you want. If you're a seller, you would prefer to be the second owner and give up nothing.
Know the (specifics, particulars of) offer. In addition to price, does the seller offer concessions (allowances or contributions) or financing options?
4. What About Financing?
Real estate transactions involve a trade--houses for money. We know the house is there, but what about financing? There are several factors that impact the money issue.
Has the buyer been pre-qualified or pre-approved by a lender? Meeting with a lender before looking at homes does not usually guarantee that financing is absolutely, unquestionably available--a loan application can be declined because of appraisal problems, title issues, survey findings and other reasons.
But buyers who are "pre-qualified" or "pre-approved" (these terms do not have a standard meaning around the country) at least have some idea of their ability to finance a home and know that they are likely to qualify for certain loan programs.
The result is that pre-qualified buyers represent less risk to owners than a purchaser who has never met with a lender. If the seller accepts an offer from a buyer with unknown financial strength, it's possible that the transaction could fail because the buyer can't get a loan. Meanwhile, the owner may have lost the opportunity to sell to a qualified buyer.
The lower the interest rate, the larger the pool of potential buyers. More buyers equal more potential demand, good news for sellers.
Alternatively, high rates or even rising rates may drive buyers from the marketplace--and that's not good for anyone.
It used to be that downpayments were a major financing hurdle--but not anymore. For those with good credit, loans with 5 percent down or less are now widely available. In fact, 100 percent financing--mortgages with nothing down--are now being made by conventional lenders. Reduced downpayment requirements are good for both buyers and sellers.
Know the financing options available before making or accepting an offer. What options add credibility/assurance to the transaction?
5. Who Has Expertise?
Knowledge is Power. Working with a qualified real estate professional gives you that power.
Imagine you're in a fight. The other guy has black belts in 12 martial arts--and you don't. Who's going to win?
Brokers have long represented sellers, and now buyer brokerage is entirely common. In a transaction where one side has representation and the other does not, who has the advantage at the bargaining table?
Know the market, the advantage of your position, and current financing options and win the negotiation between buyer and seller. When looking for your next home, contact an Accredited Buyer Representative (ABR) to help promote your best interests.
*This articles publisher is unknown, my summaries are listed in bold.
So how do you develop a strong bargaining position, one that will help you get the most from a transaction? Experience shows there are five basic keys that will determine who wins at the negotiating table.
These (5) elements are key to winning the negotiation between buyer and seller.
1. What Does the Market Say?
Know (read, interpret, study, understand) the Market. Why is it a good time to buy or sell?
At various times we're in a "buyers" market, a "sellers" market or a market where supply and demand are roughly equal. If possible, you want to be in the market at a time when it favors your position as a buyer or seller.
Because all properties are unique, it is possible to buck general trends and have more leverage than the marketplace would seem to allow. For instance, if you have a property in a desirable neighborhood with few sales, you may be able to get a better deal than elsewhere. Or if you're a buyer who can quickly close, that might be an important negotiating chip when dealing with an owner who just got a new job 500 miles away.
Knowing the other side’s main reason for buying or selling is a negotiating advantage.
2. Who Has Leverage?
If you're on the front page of the local paper because your business went bust--and the buyer knows it--you have less clout in the bargaining process. Alternatively, if you're among six buyers clamoring for that one special property, forget about dictating an agreement--the owner can sit back and pick the offer that represents the highest price and best terms.
Know the motives (purpose, intention) of both positions. What’s your bargaining power (tool)?
3. What are the Details?
A lot of attention in real estate is paid to transaction prices. This surely makes sense, but the key to a good deal may be more complex.
Consider two identical properties that sell on the same day for $275,000. The houses are the same, the sale prices are the same, but are the deals the same? Maybe not. For instance, one owner may have agreed to paint the property, replace the roof, purchase a new kitchen refrigerator, and pay the first $5,000 of the buyer's closing costs. The second owner made no concessions.
In this example, the first house was actually sold at discount--the $275,000 purchase price less the value of the roof repairs, closing credit and other items. If you're a buyer, this is the deal you want. If you're a seller, you would prefer to be the second owner and give up nothing.
Know the (specifics, particulars of) offer. In addition to price, does the seller offer concessions (allowances or contributions) or financing options?
4. What About Financing?
Real estate transactions involve a trade--houses for money. We know the house is there, but what about financing? There are several factors that impact the money issue.
Has the buyer been pre-qualified or pre-approved by a lender? Meeting with a lender before looking at homes does not usually guarantee that financing is absolutely, unquestionably available--a loan application can be declined because of appraisal problems, title issues, survey findings and other reasons.
But buyers who are "pre-qualified" or "pre-approved" (these terms do not have a standard meaning around the country) at least have some idea of their ability to finance a home and know that they are likely to qualify for certain loan programs.
The result is that pre-qualified buyers represent less risk to owners than a purchaser who has never met with a lender. If the seller accepts an offer from a buyer with unknown financial strength, it's possible that the transaction could fail because the buyer can't get a loan. Meanwhile, the owner may have lost the opportunity to sell to a qualified buyer.
The lower the interest rate, the larger the pool of potential buyers. More buyers equal more potential demand, good news for sellers.
Alternatively, high rates or even rising rates may drive buyers from the marketplace--and that's not good for anyone.
It used to be that downpayments were a major financing hurdle--but not anymore. For those with good credit, loans with 5 percent down or less are now widely available. In fact, 100 percent financing--mortgages with nothing down--are now being made by conventional lenders. Reduced downpayment requirements are good for both buyers and sellers.
Know the financing options available before making or accepting an offer. What options add credibility/assurance to the transaction?
5. Who Has Expertise?
Knowledge is Power. Working with a qualified real estate professional gives you that power.
Imagine you're in a fight. The other guy has black belts in 12 martial arts--and you don't. Who's going to win?
Brokers have long represented sellers, and now buyer brokerage is entirely common. In a transaction where one side has representation and the other does not, who has the advantage at the bargaining table?
Know the market, the advantage of your position, and current financing options and win the negotiation between buyer and seller. When looking for your next home, contact an Accredited Buyer Representative (ABR) to help promote your best interests.
*This articles publisher is unknown, my summaries are listed in bold.
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