Quite often people may know their credit isn’t ‘stellar’, but when thinking about buying a home, they would like to know ahead of time just how bad it is. . . and often to their surprise, they find it isn’t quite as bad as they thought it was.

So, are the “FREE” credit score sites really free?

The answer is ‘YES’  . . .and ‘NO’.

‘NO’ if you thought  that with your credit score, you would also get a copy of your credit REPORT.

The simple truth is that the advertisers of the “free credit score” sites give you only that. A free credit score.

What does it mean? How was it derived? What is the bad stuff that made it so low? That information is not free. For a copy of your report, they want you to pay a monthly fee for their services.

For example, FreeCreditScore.com will give you your Experian score for free but you must first provide them a credit card number  –  your credit score is free only if you call them within 7 days to cancel their automatic subscription. Otherwise, you’ll be billed $14.95/month. And trust me…. you will get a hard sell when trying to cancel.

By the way – Are you aware that there are three credit reporting bureaus? Equifax, Experian, and TransUnion. Not all three evaluate credit in exactly the same way, so the score from one, is not likely to be the exact same as the other two.

In researching on-line “FREE” credit score sites, I found only one that will provide you a truly Free Credit SCORE and a Free Credit REPORT.

https://www.Quizzle.com/

From Quizzle you will get a detailed credit report (TransUnion)  showing what has been reported by each creditor, plus an analysis of your credit and what you can do to improve your score. Now that is useful information!

The other thing I liked about Quizzle is they do not ask you for your social security number. They verify that you are who you say you are by asking you questions from your credit file that only you would know the answers to.

Please feel free to contact me for names of lenders who’ve provided my buyers great service in the past.

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I think we all know by now that our laptops can access the internet from ‘hotspots’ such as Starbucks, McDonalds, all the hotels, and even Hooters!  But none of those servers offer security and would be terribly inconvenient for conducting business.

Checking the internet, it seems the most common choice is to buy a monthly subscription from your cell phone provider that will let you ‘tether’ your phone to your laptop. Your phone now acts as the internet server for your laptop. Subscription costs run anywhere from $20-$50 a month. Terribly expensive!!

But I found two other choices, both very reasonable. One is a downloadable software called PdaNet marketed by June Fabrics. http://www.junefabrics.com/index.php There is a free version, but it will not access secure sites (https) – to use it for E-Edge you’ll need to buy the pro version for $29.95.

I tried using the free version of PdaNet, but since this program is an ‘app’ installed on my cell phone, Sprint has managed to block it. I could not get to the internet. I then found another program called Easy Tether Lite. https://market.android.com/details?id=com.mstream.et

This program is not an ‘app’. It is simply an internet connection from your phone. So if you are already paying for unlimited internet data on your cell phone (emails, texting, navigation, etc.) this is perfect.

It took me awhile to figure out how to install the program… I was trying to make it harder than it was. Basically, the program files are downloaded to the disk on your cell phone. Then you’ll need to transfer the files to your laptop. (Side note: I created a folder on my C drive called Easy Tether and moved the files from my phone’s disk drive to this folder.)

The main thing is, follow the directions that have been downloaded to your phone. After you’ve moved the files to a folder on your C drive, open the folder. You’ll see a sub-folder called “Download”. (How obvious is that!!)  Here you will see a ‘file type’ called ‘Windows Installer Package’. Click on that. Within minutes the program will be installing onto your laptop.

I bought the Pro version, one time cost of $9.99, so I would have access to secure sites. E-Edge is a secured site. To test it, I disconnected my laptop from my home server, tethered my phone via my USB cord, and clicked ‘connect’ on the Easy Tether icon. Voila!!! I was on the internet, and was able to access my loops on E-Edge. How sweet is that!!

FYI:  If your USB cord is long and clumsy, I found a 6” USB cord on Tiger Direct for $5. http://www.tigerdirect.com/ 

Happy tethering!!

NO ‘mysterious’ deposits to your bank accounts –

Borrowing money for a down payment to buy a home is an absolute ‘no-no’ in the world of mortgage lending.

If there is a chance you may not have enough for the down payment plus closing costs, we can sometimes ask the seller to help cover closing costs.  Oe you can even accept a gift from a close relative to help with the down payment.  But borrowing for the down payment or closing cost money is totally forbidden!

I’ve had several buyers over the years who have run into problems, not because they didn’t have enough money, or because they borrowed money, but because they couldn’t prove their money wasn’t borrowed. And if a buyer can’t document the source of a deposit, the loan underewriters will almost always assume he made a private loan.

In one case, my client was a policeman. Like so many policemen, he had worked a ‘detail’. But when he deposited the check from the merchant, he didn’t think to make a copy of it. Wouldn’t you know, when they looked at his bank statement, the underwriters assumed he had made a loan, and he couldn’t prove otherwise. It became such an issue, that in order to close on his house, he had to get a ‘gift letter’ from his sister in the amount of the deposit. Isn’t that crazy??

Another buyer simply deposited cash from a garage sale. Since they were downsizing, they started cleaning out in preparation for their upcoming move. She emptied the attic of all the baby furniture (crib, stroller, and tons of baby stuff), along with furniture and they didn’t want to move to their new home. Seems natural enough – but how do you document the source of cash to a lender?

My third buyers used wedding gift money for their down payment. Again – how do you document the source of cash and a bunch of checks received as wedding gifts?

In all three cases, problems could have easily been avoided had my buyers planned ahead. All the policeman had to do was to make a photo copy of his check before depositing it. How’s that for proof?

In the second case, I would have simply advised my buyer not to deposit the cash. Had she simply elected to use her garage sale cash to buy gas and groceries over the next couple of weeks, all problems would have been avoided.

And for the just-married couple, the ideal solution would have been to give all the wedding gift cash to one ot their parents. Then the parent could have written one single check along with a gift-letter. Simple, legal, and so much easier than trying to prove the source of a dozen different gifts.

Remember the ‘Golden Rule’. He who has the Gold makes the Rules. In real estate, it will always be the lender who is funding the home purchase. So with just a little better understanding of the process, hopefully you can avoid a couple of the pitfalls.

Should you have other questions about the buying process, please feel free to contact me. If I can’t answer them, I have lenders I’ve worked with that I would feel comfortable referring you to.  [contact-form] 

The first item on your house note will be the Principle and Interest calculation for the original amount of your loan. Using a good Mortgage Calculator, simply plug in the current interest rate and the number of years.

The Mortgage Calculator on my website not only provides you the monthly amount of principle and interest, it will also give you a printout of the accumulated principle and interest over the term of the loan.

Most mortgages are written using 30 yrs. However, if you plug in 15 years, you can see the difference in the amount of the payment. If you feel comfortable with a higher monthly payment, you will be able to pay down the principle much sooner and save a considerable amount of interest.

PMI– What’s That?

If you a financing with less than a 20% down payment, the lender will add onto the loan PMI. That’s Private Mortgage Insurance and it will be collected until at least 20% of the principle has been paid.

Have you heard of Fannie Mae or Freddie Mac? These are companies that insure mortgages so that if a borrower defaults, the bank (your lender) will have part of their loan insured. It lessens the lender’s risk since they have considerably more money invested in the home than the borrower. That’s one of the reasons you hear them mentioned on the news so much these days. With all the foreclosures and ‘short sales’, these large home loan insurers are taking a heavy hit.

Anyway, point is, the lender will add PMI to your monthly payment. The rate varies, but it is a fairly nominal amount – less than a half of a percent.

Insurance – Homeowners and Flood

As long as you have a mortgage, your lender has a vested interest in knowing your home is fully insured in the event of a fire, flood, or hurricane. After all, he probably has more money invested in your new home than you do. Right?

Insurance premiums are always paid in advance. So at the Act of Sale, you will pre-pay the first year of insurance premiums. (Part of your closing costs.) Then the lender will collect two months of premiums to start your Escrow Account.

Thereafter, for the life of your mortgage, the lender will continue to collect escrow in order to pay your premiums each year upon renewal. Depending on what next year’s premium might be, you will no doubt receive a letter from your lender once a year detailing your escrow account and how much, if any, the monthly escrow deposit needs to be adjusted.

Property Taxes

Just as the lender collects insurance premiums on your behalf, they will also collect property taxes. Although you may receive a re-assessment letter from the Assessor’s Office over the course of your loan, you will never pay your property taxes direct. They will be paid by your lender from your escrow account. This assures the lender that the property will not go into a Sheriff’s sale for failure to pay property taxes.

How to Estimate Your Monthly House Note –

First calculate the principle and interest at today’s prevailing rate. If you are buying with less than 20% down, use an interest rate about a quarter point higher than the current rate to allow for PMI. (Instead of 4%, estimate using 4.25%)

Then add an estimated amount for insurance and tax escrow. Your lender can usually give you a ballpark figure. Or you can call the agent who handles your auto insurance and ask him for a rough estimate. Just understand that the actual premium will depend on exactly where the home is located and how much it is worth.

And of course, the last thing is property tax. In St Tammany Parish, the Assessor has a website where you can check the existing taxes on a property. However, keep in mind, the current tax can change based on a new assessment, homestead exemption, and even the age of the homeowner. (The rate gets locked in for senior citizens.)

For more information about buying or selling a home, call or drop me a note and I will get back in touch with you right away. . .

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I’ve had the privilege to work with some wonderful clients. Included are letters from just a few of them. . . . .

It was a bumpy road, but so worth it!!

My husband and I had been trying to purchase our first home for a very long time. We had worked with several other agents, and not one having our best interest. One day we were referred to Joyce Albert.

She was definitely “Heaven Sent”.  Ms. Joyce listened to our needs and our concerns. We explained to her what we were looking for, and what our budget was. She made sure to not stray away from our needs. She is “really great” at what she does.  We began looking for our home in February 2009. We closed in July 2009. Not for a minute did she give up on us or lose patience with us.

This was a long and tedious journey and we hit a lot of bumps along the way. If Joyce had not been on our side, we would have given up a long time ago. When she didn’t hear from my husband or me, she would make it a point to call or e-mail us with words of encouragement. My husband and I could not do enough to show her how greatly she is appreciated to my family and me. Every day, I praise her to everyone that comes to see our new home. Thanks Ms. Joyce for everything, we love you.

                                Dwayne Sr., Monica, Meghan and Dwayne Jr. (Slidell)

Joyce was our agent when we moved from Missouri to Slidell.

We traveled to Slidell to house hunt before our move. We told her our preferences and price range. Not only did she provide listings that matched our requirements, she made herself available to show us multiple properties in a short time frame. She coached us on the area, told us of local activities, recommended entertainment, and informed us about the southern Louisiana lifestyle. Joyce knows the area well and maintains a positive outlook even in difficult situations. Joyce is a true professional.

PS:  A year later we were transferred to Seattle. Joyce listed our home in Slidell, marketed it aggressively, and had it sold in a month!! Joyce, we love you –

                                      Craig and Carolyn

Need a really good agent?

Joyce is an excellent real estate agent.  She was always available to answer any questions I had.  She even set up my home and termite inspections for me, which saved me lots of money since the same person came out and completed both.  Even though I bought my home several months ago, Joyce keeps in touch by sending coupons and helpful links to websites periodically.  I would definitely recommend Joyce to family and friends.  I would say I’d use her in the future… but I’m very happy in my new home!!

                                SHANNON A – SLIDELL, LA

Our first home. . .

My husband and I are a young couple that got to experience the joy of working with Joyce Albert. At first, I didn’t even think we’d qualify for a home loan. Joyce and her team did the job.

We began looking in early December and were very careful with our budget. Joyce was, as well. She showed us home after home until we found one that suited us. We even went to her residence on Christmas evening to write an offer on a home. She is very dedicated to her work and I would recommend her to anyone that I come across that happens to be looking for a home.

Yes, it is a long, hard process, but we closed on our first home on March 6 and Joyce never gave up on us no matter what the situation was. She surely gets 2 thumbs up from my family and me!!!!

                                Chad & Leslie, Pearl River, LA

I thought that it would be impossible to sell my property. . .

Joyce, in today’s market I thought that it would be impossible to sell my property in Slidell. Well, you made it possible, and I want you to know that I appreciate everything that you have done for me.  You are truly amazing,  and I will recommend you to everyone I know.  Thank You -

                                 Cheri Hebert, Gretna

WHAT EVERY HOME SELLER NEEDS TO KNOW

Have you noticed how many ‘For Sale’ signs there are today? Does it seem like hardly any are getting sold?

Well, you are right. With over 1000 homes on the market at any given time, and fewer than 90 actually closing each month, that’s a lot of inventory!! Add to that all the new listings coming onto the market each month, getting your home sold can be a daunting task.

With so many homes competing for buyers, today’s home seller has to be determined and highly motivated. Following are just some of the issues that must be addressed if you are to be successful. . .  

• PRICE IT RIGHT.  Pricing your home high just to see if you might get a higher offer is a waste of time. Home shoppers are savvy. They browse the internet and know what’s out there at what prices. Pricing it high will only result in buyers passing you by. And you can’t sell a house that no one’s looking at! So. Price it right from day one… get buyers beating a path to your door.
• FIX, REPAIR, PAINT.  We all have those small repairs and projects that we’ve ignored because they just didn’t seem important. Like a faucet that drips. House trim with chipped or mildewed paint. Or a front door that is weather worn. These are the sort of things people notice. What has seemed minor to you up to now, will leave a very negative overall impression on a buyer. Can you afford to lose a buyer over this minor stuff?
• CURB APPEAL.  Pull weeds and freshen up the flower beds. Edge the driveway, sidewalks and curb. You would be surprised how many buyers drive through a neighborhood and check a home off their list just by the way it looks on the outside… and likewise, sometimes they just can’t wait to see the inside because  the house  “…just looks so beautiful.”  This is one time, appearances do matter!!
• STAGE YOUR HOME.  Step back. Take a hard look at your house. Does it look tired and outdated? How about a new bedspread and plush towels in the bath? Should you store that beat up recliner in the garage for now? And for heaven’s sake, remove the shaving cream and toothpaste from the vanity; put out a nice dish of hand soaps instead.
• DE-CLUTTER.  A buyer needs to visualize themselves living in your house. Pack up the ceramics collection. Remove the kids artwork and assortment of vacation magnets covering the refrigerator. Store kitchen appliances not in daily use (blenders, etc).  You’ll be surprised how much better your kitchen looks!
• CLEAN, CLEAN, CLEAN.  More than ever, keep the kitchen and bathrooms spotless. People will look behind the shower curtain and open closets. If the cat’s litter box isn’t cleaned every day, they’ll notice the minute they walk in… and they may just turn and walk right back out!
• And finally, DRESS FOR SUCCESS …your home, that is. While your home is on the market, you need to leave it every morning looking as if you are expecting company that day. If you are lucky, it may get shown, and keep in mind  -  you won’t get a second chance to make a first impression.

So are you feeling a little bit overwhelmed about now? Are you thinking this is going to be a lot of work?

Good. That means you are already a step ahead of your competition  –  those other home sellers who just don’t get it. Selling a home is tough, but you have the advantage once you start looking at your house through the eyes of a buyer.

Last but not least, you need the help of a professional real estate consultant, not just another agent who sticks a sign on the lawn. Or, as we say in the business, practices the “Three P’s” –  Place a sign, Post the listing, and Pray that it sells.

When you list your home with me, I’ll provide you facts and advise you can use. I’ll create a virtual tour of your home that will be marketed on dozens of internet sites. I’ll constantly review and keep you advised of market changes so that your listing stays IN the market, not just ON the market.  And when we find your buyer, I’ll negotiate on your behalf to get you the best price and terms. . . Then monitor your sale to handle any problems that arise, and keep you updated all the way to the closing table.

For add’l information, please visit my website, http://www.StTammanyHomesForSale.com/  

You can also call me at 504-451-8343 for a private consultation about selling your home, or send me an email and I’ll get back in touch with you –  [contact-form]

 If you’re thinking of selling your home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale. A short sale is one where the net proceeds from the sale won’t cover your total mortgage obligation and closing costs, and you don’t have other sources of money to cover the deficiency. A short sale is different from a foreclosure, which is when your lender takes title of your home through a lengthy legal process and then sells it.

1. Consider loan modification first. If you are thinking of selling your home because of financial difficulties and you anticipate a short sale, first contact your lender to see if it has any programs to help you stay in your home. Your lender may agree to a modification such as:

• Refinancing your loan at a lower interest rate
• Providing a different payment plan to help you get caught up
• Providing a forbearance period if your situation is temporary.

When a loan modification still isn’t enough to relieve your financial problems, a short sale could be your best option if :

• Your property is worth less than the total mortgage you owe on it.
• You have a financial hardship, such as a job loss or major medical bills.
• You have contacted your lender and it is willing to entertain a short sale.

2. Hire a qualified team.The first step to a short sale is to hire a qualified real estate professional* and a real estate attorney who specialize in short sales. Interview at least three candidates for each and look for prior short-sale experience.

Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed a lot of short sales. You want to work with those who demonstrate a thorough working knowledge of the short-sale process and who won’t try to take advantage of your situation or pressure you to do something that isn’t in your best interest. A qualified real estate professional can:

• Provide you with a comparative market analysis (CMA) or broker price opinion (BPO).
• Help you set an appropriate listing price for your home, market the home, and get it sold.
• Put special language in the MLS that indicates your home is a short sale and that lender approval is needed (all MLSs permit, and some now require, that the short-sale status be disclosed to potential buyers).
• Ease the process of working with your lender or lenders.
• Negotiate the contract with the buyers.
• Help you put together the short-sale package to send to your lender (or lenders, if you have more than one mortgage) for approval. You can’t sell your home without your lender and any other lien holders agreeing to the sale and releasing the lien so that the buyers can get clear title.

3. Begin gathering documentation before any offers come in. Your lender will give you a list of documents it requires to consider a short sale. The short-sale “package” that accompanies any offer typically must include -

• A hardship letter detailing your financial situation and why you need the short sale
• A copy of the purchase contract and listing agreement
• Proof of your income and assets
• Copies of your federal income tax returns for the past two years

4. Prepare buyers for a lengthy waiting period. Even if you’re well organized and have all the documents in place, be prepared for a long process. Waiting for your lender’s review of the short-sale package can take several weeks to months. Some experts say:

• If you have only one mortgage, the review can take about two months.
• With a first and second mortgage with the same lender, the review can take about three months.
• With two or more mortgages with different lenders, it can take four months or longer.

When the bank does respond, it can approve the short sale, make a counteroffer, or deny the short sale. The last two actions can lengthen the process or put you back at square one. (Your real estate attorney and real estate professional, with your authorization, can work your lender’s loss mitigation department on your behalf to prepare the proper documentation and speed the process along.)

5. Don’t expect a short sale to solve your financial problems. Even if your lender does approve the short sale, it may not be the end of all your financial woes. Here are some things to keep in mind:

• In rare cases, you could be asked by your lender to sign a promissory note agreeing to pay back part of the deficit not covered by the short sale.
• Any amount of your mortgage that is forgiven by your lender could be considered income, depending on prevailing tax laws. Under a temporary measure passed in 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act, homeowners can exclude the amount of debt forgiveness on their federal tax returns from being treated as ‘income’ for loans discharged in calendar years 2007 through 2012. Be sure to consult your tax preparer for current rules pertaining to your particular circumstance.
• Having a portion of your debt forgiven may have an adverse effect on your credit score. However, a short sale will impact your credit score less than a foreclosure and bankruptcy.

Note: This article provides general information only. It is not intended as advice for a specific situation. Laws vary from state to state. For advice on a specific matter, consult your attorney or CPA. 

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The word ‘loan’ is a bit of a misnomer, since Federal Housing Administration (FHA) loans are not loans at all. What the FHA does is insure loans so that lenders can offer mortgage assistance to people who:

• May have only fair credit
• May only have a low down payment (must have at least 3.5%)
• May have undergone bankruptcy
• May have been foreclosed on

Essentially, the federal government insures loans for FHA-approved lenders so that lenders reduce their risk of loss if they lend to borrowers who could default on their mortgage payments. The FHA program has been in place since the 1930s to help stimulate the housing market by making loans accessible and affordable. Traditionally, FHA loans have helped military families who return from war, the elderly, handicapped, or lower-income families, but really, anyone can get an FHA loan – they are not just for first-time home buyers.

What are the advantages of FHA loans?

An FHA loan is the easiest type of real estate mortgage loan to qualify for because it requires a low down payment and you can have less-than-perfect credit. Also, because FHA insures your mortgage, lenders are more willing to provide loans. Another advantage of an FHA loan is it’s assumable, which means if you want to sell your home, the buyer can “assume” the loan you have. FHA loans can be used for a home purchase or a refinance.

For a referral to lenders who have done a good job helping some of my other clients, drop me a note. . .[contact-form]

If you are in the market to buy a home, chances are that you have seen at least one property that is either a short sale or a bank-owned property.

And based on what I have seen, many short sales or properties that are currently owned by the bank are in need of a few repairs before anyone can live in them.

Which is why I get quite a few questions about two of the most popular loan programs designed to help homeowners finance needed repairs on a new home: the FHA 203k loan program and Fannie Mae’s HomePath mortgage program.

One of the more common quick questions I hear when people are learning about these loan programs is:

“Which is better, the HomePath mortgage or the FHA 203k loan?”

The simple answer to this question is “it depends” and before I give you a simple formula that might help you choose between the two programs, here is a quick review of each loan program.

The FHA 203k and FHA Streamline 203k Loans

The FHA 203k loan program can be grouped into two different types of loans: the FHA Streamline 203k loan program and the FHA 203k loan. The FHA 203k streamline is designed to be a limited repair program and has simpler processes and no HUD consultant required like on the full FHA 203k loan. In my experience, the FHA 203k streamline is a more popular option since many of the needed repairs for bank-owned homes can be considered “cosmetic.”

Highlights of the FHA 203k streamline loan include:

• It works very similar to a construction loan – it allows you to purchase a home that wouldn’t qualify for FHA financing due to repair work being needed
• The loan amount is equal to the purchase price of the home plus the amount needed for repairs
• FHA 203k streamline program allows for repairs ranging from $5,000 and $35,000
• Qualifying for FHA 203k loans are the same as regular FHA loans
• Repair work cannot begin until loan closes and the money to pay contractors comes from an escrow account set up when the loan closed
• FHA 203k loans require UFMIP and MIP just like regular FHA loans
• Appraisal required
• Currently available for owner-occupied properties only although I have heard rumors of an “Investor 203k loan” coming soon.

Fannie Mae HomePath Renovation Loan

When the housing downturn began and Fannie Mae started owning more homes than ever before, one of the things Fannie Mae did to help move the homes to new owners was to design the HomePath mortgage program.

The HomePath mortgage program has two different programs within it – the HomePath loan and the HomePath Renovation loan.

For homes that are in need of repairs, the HomePath Renovation loan is the loan program that is often compared to the FHA 203k loan when weighing options.

HomePath Renovation loan highlights include:

• The property must be currently owned by Fannie Mae
• The loan amount is for both the home and the repairs required for the home
• Repairs can be up to 35% of the as-completed value, but not to exceed $35,000.
• Down payment requirements can be as low as 3%
• Fixed or adjustable rates are available
• No mortgage insurance required
• Investment properties or 2nd homes and investment properties are allowed
• No appraisal required
• Lenders can be difficult to find, not every lender is HomePath approved and many HomePath approved lenders do not offer the HomePath Renovation loans

HomePath Renovation Loan or FHA 203k Loan?

When deciding on financing for a home that is in need of repairs, the Fannie Mae HomePath Renovation loan program and the FHA 203k loan program are what most people are going to select.

Is there an easy way to select the “right” loan between the two?

Yes.

Which Loan Program Is Better?

Here is a simple way to choose the right loan program between the two if you are buying the home as your primary residence:

• Is the home owned by Fannie Mae? If yes, it probably makes the most sense to get a HomePath Renovation loan.
• Is the home owned by someone other than Fannie Mae? If so, then your best option is the FHA 203k loan.

While both the FHA 203k loan and the Fannie Mae HomePath Renovation loan programs are similar, I have found that for houses owned by Fannie Mae it usually makes more sense to go with the HomePath Renovation loan.

Which means the first question you may want to ask is:

Is this house owned by Fannie Mae?  . . .And then you will have your answer.

The 401K as a Source of Down Payment Funding

Mortgage Insurance As An Alternative

Second Mortgage As An Alternative