Believe it or not, amid the rigid lending standards and the number of lenders on the “up and up” there are still vultures preying on the borrower’s vulnerabilities. In this case, it’s a “safe” scam but one that may get your hopes up only to realize how easy it is to still fall victim to the old “drive by” mortgages that flowed freely a few years ago.

This “safe” scam site is called Esteemed Lending Services, offering plenty of loan services for those with poor credit. In fact, if you look closely, the site is riddled with typos which should tip off any leery borrower.

Click on one of the tabs to the left and the site is revealed as an imposter. Esteemed Lending Services is actually a site created by the Federal Trade Commission (FTC) to demonstrate how easy it is to fall victim to online lending scams. Each tab contains the warning message from the FTC, “If you responded to an offer like this one, you could have been scammed!” The copy goes on to tell the reader that Esteemed Lending Services is not a real site, but one developed by the FTC to warn consumers of predatory lenders.

The FTC offers tips backed by your hometown lender, AmeriFirst:

• Red Flag #1: a lender who is not interested in your credit history is often a scam.
• Red Flag #2: fees that aren’t disclosed or readily available are definitely a problem.
• Red Flag #3: offering a loan by phone is a scam and definitely illegal.
• Red Flag #4: the lender is not registered in Michigan (or your state)—lenders and loan brokers are required to register in the state they do business.

Better yet, instead of scanning the web, contact the loan professionals at AmeriFirst. We work closely with you to develop a personalized action plan for success. Our seasoned lenders can offer tips on how to improve your credit rating and save money for a down payment, so you can be prepared to apply for a mortgage when you are ready.

For more information about AmeriFirst or our loan programs, contact us today at 800-466-5626 today.

Reference Links:

• http://realtytimes.com/rtpages/20100722_sitetosee.htm
• http://www.wemarket4u.net/esteemed/index.html

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Remember when being in the mortgage business was considered to be a “creative” industry? Only a few years ago some lenders were getting kooky with their interest-only loans and option ARMs. At the time, borrowers thought doing business this way was “smart” but were of course proven wrong during subsequent years.

So now what? Back to the cookie cutter mortgages where you have a few small options and if your situation doesn’t gel with the establishment; too bad? Not so fast. Sure lenders, such as AmeriFirst are being (and have been ) extremely conservative and careful about mortgage loans, however having options doesn’t mean that we’re going rogue and will start providing crazy products either.

For example, the June issue of Money Magazine details specific situations where the borrower needs a loan, but doesn’t necessarily understand how to achieve his or her goals with the traditional product.

• Those who want to build equity. In the first instance, the borrower wants to build equity faster. Money Magazine experts suggest looking into a 15-year fixed-rate mortgage. Jim Pair, president of the National Association of Mortgage Brokers, says that you will accrue equity faster with a 15 year product versus a 30 year. Plus you’ll save a tremendous amount of money in interest payments over the life of the loan. The only “stick” to this theory is that you’ll pay a little more every month than with a 30 year product. If you can swing it, it might be the best deal.
   
• Borrowers on the move. Another situation relates to those who believe they will move in five years or less. Money Magazine experts believe that a five-year hybrid adjustable-rate mortgage might be your best bet. Currently the five year fixed 5/1 ARM is the perfect solution for those who don’t plan to stay in one place very long, says Rick Allen, product manager with Mortgage Marvel. The drawback with this strategy is that you can’t sell before the five-year term is up because then your rate could increase. It’s a good idea to have a nest egg of cash just in case.
   
• Wanting to buy a home without having 20% for a down payment. Finally, what if you don’t have 20% to use for a down payment on the home? The solution—the FHA loan. Because of stringent lending guidelines, it’s difficult to obtain a loan without a 20% down payment. However, with an FHA loan you can put down as little as 3.5%. It’s important to remember when you go through the FHA there is a fee of 2.25% of the loan up front, plus 0.5% a year for the first five years or until you have 22% equity in your home.

As you can see, one size does not fit all, but you can leverage traditional mortgage products to your advantage and customize them to your specific situation. At AmeriFirst, we’ll help you every step of the way and advise you on which product is most advantageous for your borrowing needs. For more information about our programs or about AmeriFirst call us at 800-466-5626.

Reference: Max, Sarah. “Find a Mortgage Tailor-Made for You.” Money Magazine. 2010 June.

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If only we had magical powers and a crystal ball to foresee the future of the housing market, but unfortunately no one does. However, we can rely upon highly skilled experts to make educated assumptions and guesses about when we are going to see the light at the end of this long, dark housing market tunnel.

Recently, Stan Humpries, chief economist at Zillow.com addressed some of the biggest housing myths, or rumors swirling around the Internet and the local water hole:

1. Hip, hip hooray, the housing recession is over! Well…not so fast, Humpries cautions. He urges Americans to look around their neighborhood and assess what is selling, what isn’t selling and how much neighbors are receiving their properties. He adds that prices are going to have to bottom out before we are going to see recovery, which he expects to occur around third quarter of 2010.
2. My home will go back to pre-recession values once the market stabilizes. Another myth that simply won’t happen. Humpries says that for at least three to four years, home values will be long and flat. He likens the recovery as being more “L” shaped than “V” shaped. He says that on the positive side, values won’t continue to free fall.
3. The worst part of the foreclosure crisis is history. Once again, poor Stan Humpries is coming out looking like the grim reaper. Nope, he says. Until the job market gets it preverbal “color back in its cheeks” the foreclosure market will remain the same. Can’t have foreclosures recede with people continuing to be out of work.
4. We can all thank tax credits for saving the housing market. While Humpries agrees that the tax credits rearranged homebuyer’s psychology and approach to home buying, in reality historically low prices coupled with a 50-year low interest rate structure is what’s keeping the housing market afloat. Also, add in FHA increasing its role and you have more eligible buyers today than you’ve had in previous years.

Here’s the good news…if you are a first time homebuyer or an investor, the time to buy is now. You’ll never stumble across a market quite like this, where the property prices and interest rates are extremely low.

Humpries says that inventory is constantly increasing providing buyers with once in a lifetime opportunity. Take these facts into consideration:

• There are currently seven to eight million homes on the verge of foreclosure
• 5.3 homeowners are waiting and ready to jump into the market
• Twice as many homes were added to the market as were sold in April
• The housing inventory numbers are the same as they were last year

One of the best ways to get in the game is to get pre-approved for a mortgage with AmeriFirst. Our expert loan officers will work closely with you so you can house hunt with that pre-approval in hand; which mean buying power for you! For more information about our mortgage programs, call us today at 800-466-5626.

Information Source: CBS MoneyWatch

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Feeling a little down in the dumps due to backed up credit card bills or a late mortgage payment? At least you aren’t a star on one of Bravo TV’s multi-million dollar franchise, “The Real Housewives.”

The show started as a spin off from the wildly popular fictional show, “Desperate Housewives” back in 2005 with “The Real Housewives of Orange County.” For months, camera crews followed the lives of overly privileged women and their lavish appetite for spending money.

The initial show’s success created a national franchise with Housewives of Atlanta, and New York City and New Jersey. The running theme throughout the shows was the same—lots of money and lots of bling.

However, how much “bling” and money do these women really have? Does art (if you want to call reality TV art) truly imitate life?

According to Zillow, many of these “housewives” have gotten into a financial pickle and are having their spending habits curbed by outside sources—such as lenders and the government.

For example, one New Jersey housewife, who travels with a rather large wad of cash in her pocketbook, is now facing bankruptcy and foreclosure on two of her three properties. On a “reported” $79,000 salary, her family debt looks like this:

• Credit card debt — $104,000
• Car payment — $1,280/month for their Cadillac Escalade
• Fertility clinic — $12,000
• Real estate — $2.6 million for eight mortgages on three homes (two were taken by lenders)
• Business investments — $5.8 million
• Phone bill — $2,300
• Home repairs — $85,600

The grand total is approximately $11 million! How did this happen? So many Americans got caught up in the whirl of living the high life several years ago and never stopped. According to a recent MSNBC article, household debt by the end of 2007 reached a record 133.7% of disposable income. The average household is nearly $10,700 in credit card debt.

Jeff Yeager, author of “The Ultimate Cheapskate” discussed with Today Show’s Matt Lauer how to avoid becoming a “Real Housewife” and live happily ever after.

The basis of his book is to live below your means instead of above—an unfortunate new American trend. He says that everyone should spend less than what their take-home pay is and save whatever they can for emergencies. Sounds simple, but is quite the opposite of what people are doing—as illustrated with reality TV shows.

He believes that Americans should spend and save money they way they did back in the early 1980’s; where homeowners would only purchase a new household item to replace one that has been worn out beyond repair. Instead, today most people simply purchase a new model or item simply because; “it’s better” or they “want it.”

Unfortunately fueling the fire of “I want” were subprime lenders. Only a few years ago, subprime lenders roamed the markets telling borrowers who clearly couldn’t afford to make monthly payments on their mortgage that they should purchase that multi-million dollar home. Today those lenders are few and far between but homeowners who bought their cheesy pick up line are now stuck with a home, most likely, in foreclosure.

AmeriFirst customers aren’t in that predicament. We’ve never been part of the underworld of subprime lending and are always honest and up front with our customers about what they can (or cannot) afford. We know that your lifestyle is more than just your home—its being able to take a family vacation, establish a nest egg and having the ability to provide the best education possible for your children. We take every aspect into consideration when it comes to mortgages so that you can live the American dream—not the American nightmare.

Sources:
Zillow: http://www.zillow.com/blog/real-housewife-of-njs-teresa-giudice-in-foreclosure/2010/06/07/

Today Show: http://today.msnbc.msn.com/id/38034916/ns/today-books/

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Buying a home can be a precarious and emotionally draining process. From the legal mumbo-jumbo to dealing with multiple personalities, buying a home for even a seasoned professional can be challenging.

However, if this is the first time you’ve purchased a home, you may be facing a few additional challenges. Since you’ve never been down this path before, you may not be prepared for the possible twists and turns. Sure, you’ve done your homework and know the “process” but do you know and understand some of the pitfalls and possible surprises?

We are going to give away a few secrets of buying your first home…tidbits of information that people don’t tell you. Leading real estate network, HGTV reveals some of the 10 best kept home buying secrets:

• Don’t buy a new car (or any big item). Three to six months before purchasing your home, don’t go crazy with the credit cards because it will affect your credit profile which will impact your loan eligibility.
• Get pre-approved for your loan FIRST. Take the extra step and get pre-approved instead of simply being pre-qualified. The difference is that a borrower who is pre-approved is one who has gone through the financial process with the lender and presents himself as a more serious buyer. Should you find your dream house during your search you can swoop in immediately with a solid offer.
• Conduct a property survey. Avoid the common pitfalls of not knowing exactly where your property line is drawn. Remember stories of one neighbor cutting down a tree only to find out it’s on his neighbor’s property? Find out before you buy so you know what you are getting.
• Don’t try to time the market. The best time to buy a house is when you are ready. You’ll lose your mind trying to time the market.
• The nicest house on the block isn’t always the best choice. If you pay considerably more than everyone else your home’s appreciation has little mobility. Dig up some comparables to ensure your home has plenty of financial growing room.
• Consider more than your mortgage payment. Just being able to afford your mortgage payment is one of the most common first time home buyer pitfalls. Budget for property taxes, insurance and homeowner dues before saying “I do” to your new home.
• …and speaking of “I do.” Remember, you aren’t dating your home. Avoid getting overly emotional or “falling in love” with the home during the home buying process. Sometimes the purchase doesn’t work out. You don’t want to be set back from finding your home because you are hung up on another.
• Conduct a property inspection. Know exactly what you are buying—the good, the bad and the ugly. The last thing you want to discover is that your new home is in dire need of a new roof or complete plumbing or electrical system AFTER you’ve signed the paperwork and own the home. Hire a qualified property inspector to determine that you are buying a jewel and not a lemon.
• Take a scientific approach to making your offer. Don’t pull a random number out of a hat, design your bid based on what you can afford and what you believe the property is worth. Check out the neighborhood and see if the neighbors are putting on additions or new landscaping.
• Take everything into consideration. Be sure that this is the community for you and your family. Even if you don’t have children, evaluate the school district—a winning school district boosts home values. Check out your neighborhood during the day and later at night to ensure this is the right place for you

Above all, consult with your lender and real estate professional throughout the process. If you have questions, ask them! That’s why we are here! If you are ready to enter the home buying process, contact AmeriFirst today at 800-466-5626.

Source:
HGTV: 10 Best Kept Secrets for Buying a Home

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With the month of June named “National Homeownership Month,” Rural Development officials want the community to know that they are available for assistance and have money to lend. You too can live the American dream of homeownership!

USDA’s RD 502 Direct Loan program provides loan assistance to low income families. The loan is subsidized by the federal government, which lowers the mortgage payment for the borrower.

Currently, the fixed interest rate is 4.875% for a term of 33 years with a loan limit of $140,600. Monthly payment assistance may be available for those who qualify.

Qualifications include:

• Borrower must be at least 18 years old
• U.S. citizen
• Good credit rating
• Demonstrated ability to repay the loan

In addition to National Homeownership Month, June also marks a high point in tornado season in Michigan. Although the tulips are blossoming and the weather is getting relatively nicer, spring often brings some of the most damaging weather Michigan sees all year. Tornados and hail storms often destroy homes and properties—leaving nothing but piles of memories and destroyed dreams in its path.

When it comes to picking up the pieces, homeowners should remember that the USDA Rural Development (RD) also provides affordable financing to those who have lost their homes or suffered damage due to a natural disaster such as a tornado.

While RD grants may not be your first line for funding, RD grants come in handy when financial assistance expires through other programs. In terms of personal assistance, the Rural Development can make loans of up to $20,000 at 1% interest, repaid over 20 years. Homeowners who are at least 62 years old may also qualify for a grant to cover repairs.

Grants and funding is also available to rebuild communities and repair damage to structures such as libraries, childcare facilities, public buildings and fire and police stations.

Non profit corporations and governmental agencies can also take advantage of funding through Rural Business Enterprise Grants. Funds can also be put to use for clean up, rebuilding and repairing industrial parks or commercial areas.

Want more information about the USDA RD lending program? Contact a helpful lender at AmeriFirst today at 800-466-5626 today.

Additional News Articles:

• Port Clinton News Herald
• Heartland Connection

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The 1970’s are back in terms of Federal Housing Administration (FHA) back loans thanks to the zeal and greed of subprime lending and the bionic lifestyle (faster, stronger, better) of the American people. Faster than Steve Austin can run a marathon, Americans wanted things now and they wanted them big. A few years ago, some lenders were more than happy to feed this addiction until…well, you know the story.

Today we’re seeing the past repeat itself, but this time it’s actually a good thing. After recently speaking with a seasoned homeowner, you could see how what’s old is now new again. The former Michigander says, “When my husband and I bought a home in the late 1960’s, early ‘70’s we were biting our nails, worried about getting a loan. We put half down; had nearly perfect credit and we both drew decent salaries. However, back then you didn’t automatically qualify for a loan and you needed to take the necessary steps to secure one.” She adds that she and her husband received a loan, but it was only after a rigorous process.

And that is the scenario many Americans are dealing with now on the heels of drive-through mortgages. In this stressful environment, Americans may have forgotten an old friend that many depended upon years ago—our old pal the FHA insured mortgage.

For many people, being able to secure a home with a 20% down payment simply isn’t a reality. They may have decent jobs and “okay” credit, but haven’t saved the kind of money needed to own a home. That’s why the FHA backed loan program is so important. The Federal Housing Administration (FHA) created a loan “insurance” program that supports borrowers in their quest for home ownership.

Certain FHA approved lenders, like AmeriFirst, are qualified to accept, process, underwrite and close loan applications that are supported by FHA insurance. This program is ideal for:

• Borrowers who have a down payment of less than 20%.
• Those who have suffered bankruptcy or foreclosure can apply for an FHA backed loan two to three years later.
• Lower credit score than what is required to qualify for a conventional loan.
• First time home buyers.

For more information about how AmeriFirst can assist you with an FHA mortgage call us today at 800-466-5626 or complete our easy online application form.

FHA Mortgage Limits from About.com

Reasons Homeowners Love FHA Loans from About.com

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Michiganders are tired. Tired of seeing our state fall behind the rest and becoming poor and less competitive. Tired of saying goodbye to friends and neighbors who no longer have opportunities in our state and have to leave. We’re also tired of waiting for “someone” to do something about it.

Today, we’re tired no more. Because we…you and me…are the one’s who are coming to the rescue. Remember a time when Michigan was an economic leader and led the country in job growth, education and industry? Those days weren’t so long ago…we can regain our strength and return our wonderful state back to the economic giant it once was.

We need everyone’s help…it’s not the democrats or republicans…it’s not just the local politicians or school board members…it’s you. You can make the biggest difference to change our state’s direction.

Together, we can become a supporter of the Michigan Turnaround Plan. We have a list of actions you can take that will directly impact our economy and put Michigan back on the list of Top Ten leading economic states.

At AmeriFirst, we are helping our customers lead the charge by posting The Michigan Turnaround Plan’s Five Step Plan. Follow these steps and in a few years you can tell your children or grandchildren that you were part of a progressive movement that helped to revitalize our great state and provide the fruitful economic conditions that are expected in the future.

Today we begin with Step 1:

Changing The Way We Manage Our Finances

The Plan begins by explaining how state legislature has mismanaged finances. “For the past three fiscal years, Michigan has over-projected revenues, in part due to the lack of sufficient input from a broad spectrum of economic advisors, resulting in chronic budget crisis.” Also, state spending has out-paced population growth due to relying on past fixed budget rates.

What Needs To Be Done?

More oversight and innovation should be executed to control spending and develop a new budget. One way is to form an independent council of public and private sector economists to deliver quarterly revenue and spending. An independent council should also conduct a quarterly survey of a cross-section of Michigan businesses to identify sales and hiring trends.

The law should also be changed to adopt a two-year budget, with budget review for subsequent years occurring at the end of the two year period.

Also, no new program should be adopted unless revenues demonstrate proven growth or other outdated programs are eliminated.

What You Can Do!

Perhaps you can’t start an independent council, but you can do your part by managing your personal finances. At AmeriFirst we stand behind our customers and help them make one of the most important financial decisions of their life—home ownership. How we purchase and manage our home finances plays a major part in putting Michigan back on top.

Ask one of our skilled loan officers about our menu of home loans that can help you own a home or refinance your home. We can help you make home ownership more affordable so you can continue to do your part in your community.

Call us today at 800-466-5626 or complete our easy online information request form.

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That’s right folks; real estate agents and sellers throughout the country are jumping for joy because fixed rates have hit the lowest point this year. Freddie Mac released data on Thursday, May 27, 2010, announcing that the 30-year fixed product now hovers at 4.78%, down from (the already low) 4.84%. The 15-year product fell to 4.21% (for current rates through AmeriFirst, be sure to contact one of our mortgage experts).

Why the fall? The European debt crisis and rollercoaster stock market can take most of the credit. According to Bankrate senior financial analyst, Greg McBride, prospective buyers should move in for the kill now because once the market stabilizes rates will creep up once again.

According to industry experts, when (if) the economy starts showing some improvement, rates are likely to start heading back up. But, if you are waiting for the market to bottom-out and time the lowest rate, that’s not always the best strategy. Before you know it, rates could be headed back the other way and you’ve missed the boat.

Another reason now is the best time to buy is that most of your competition has already purchased a house. With the rush of new home applications before the April home buyer tax deadline, the majority of buyers have already purchased a home.

The beauty of lower rates is that although you may have missed the deadline for the tax break, the lower rate probably makes up for what you may have missed.

Before you go racing out the door, consider visiting AmeriFirst before you go house hunting. Our qualified loan experts can help you identify an ideal price range and loan to accommodate your financial needs. Plus our loan officer can pre-qualify you so you can shop with confidence.

Getting pre-qualified is also a good idea because let’s be honest…you won’t be the only buyer in town. If it comes down to your bid versus someone else’s most sellers consider the bid that has “pre-qualified” attached to it.

Call us today at 800-466-5626 or complete our easy online application form.

Sources:
ABC News: Fixed Mortgage Rates Sink to Lowest Point of Year
The Associated Press: Mortgage Rates Are Back Near Record Low

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One thing this recession has done was rip the mask off of artificially inflated wealth and expose the underbelly of what people are really made of. While the average American continues to struggle to put food on the table and lights on at night, even the uber-rich are feeling the squeeze.

Not feeling a tear well up in your eye? According to a segment feature on The Today Show called, “The Party’s Over,” the “rich” or people who got rich quick from the mortgage boom several years ago are seeing their toys disappear quicker than Augustus Gloop in Willy Wonka’s chocolate river.

The Wall Street Journal profiled several prominent high end repo men in a March 20 article and discussed the massive amount of wealth and gluttony these agents encounter. One repo man claims to have reposed an $18,000 Gulfstream jets and 110 foot yachts anchored in one of the hotbeds of fake wealth—South Florida.

One highly sought repo man says that 70% of the items he has to repossess come from people who lost money as a result from the real estate meltdown. This includes developers, builders, real estate agents and contractors.

Banks seek high end repo services to not only reclaim the property, but also to make repairs and spruce up the item so it is presentable for resale.

The Wall Street Journal interviewed busy repo man, Ken Cage who said that many of his rich targets don’t meet and greet him with the level of violence as he encountered with other targets. He says that jets and yachts are easier to track and obtain thanks to the FAA and marine records. He also relies upon his network of marine captains, dock workers and aircraft pilots to help him obtain toys.

It’s not all “roses and sunshine” in the land of repos, Cage says. He’s been chased with shovels and even in a speedboat. Cage also says that work is extremely depressing.

"Here we were, taking minivans with child seats in the back, or going to someone's job to take their car," he says. "I had a tough time with that."

In the end, these repos are just part of the market correcting itself. Another lesson in money management and not borrowing more than you can afford. Even the rich got caught up in the hype and are seeing their “prizes” dwindle.

AmeriFirst customers don’t have to look over their shoulders for the repo man. That’s because we have always scrutinized every loan and agonized over every detail to ensure that foreclosure or default does not enter the picture. Sure, some of our customers have fallen on hard times as a result of the recession…we’ve all been touched by tough times.

However, we don’t have to keep a repo man in our back pocket to reclaim items that our customers can’t afford. Our lending standards have always, and continue to be solid and we stand by our customers as we navigate our way out of the Great Recession.

Wall Street Journal Article

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If there’s one thing you can take from today’s blog is that now is the time to jump on a myriad of opportunities. When was the last time you saw a housing market like this? The stars, moons, planets and the Fed have aligned to provide investors with ripe opportunities to purchase properties at the lowest rates we’ve seen in years.

Take it from BET (Black Entertainment Television) founder billionaire, Robert L. Johnson. He was recently interviewed in Money Magazine about the best advice he was ever given. Johnson recalls when John Malone (an early BET investor and now chairman of Liberty Media) told him that the best way to run a business was to “keep your revenues up and your costs down.”

How does this relate to home buying? Because Johnson’s advice is to “focus on the opportunities that are going to come to the table—because prices are low, whether it’s in the market, distressed debt, a foreclosed home or a business.”

Johnson is urging investors to “carpe diem!” Grab those opportunities waiting to be tackled and run with them, because costs in the market are low and home values are only going to increase. Sure, it may take some time, but if history is any predictor, values should go back up when the market swings back in the other direction.

If revenues dictate costs, consider the number of short sale or foreclosed properties for sale. Purchasing one of these homes will provide you with a higher return on what you will invest.

Now we aren’t suggesting that you run out and purchase the next distressed property you see. But we are suggesting that you consider the possibilities.

Also, being an educated investor is imperative to making the process productive for you. Meeting with an AmeriFirst mortgage expert will help you understand every aspect of what it takes to purchase a distressed property, along with your financing options.

We can help offer advice on how to strengthen your credit score, should you come up too short to receive a lower rate without points. So stop by for a cup of coffee or sit down for a heart to heart with one of our loan officers to determine how the housing market can work for you.

Contact AmeriFirst today to see how you can “carpe diem” too! Call 800-466-5626 or contact us online and let's get started today.

Source: Braverman, Beth; Fried, Carla; Kelleher, Lauren; Mannes,George. “The Best Advice Now, and Ever.” Money Magazine. April 2010

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Wait…aren’t we experiencing a housing surplus across the country? There’s a foreclosure or short sale on every corner and people are still trying to sell their homes in this difficult market.

According to wacky money man, Jim Cramer of CNBC’s “Mad Money,” the country should prepare for a housing shortage sometime in 2011.  He recently appeared on NBC’s Today Show and announced that America will be doing an about face on what people have become accustomed to seeing over the past five years. 

His reasoning is that with only eight months of housing inventory, buyers will find a smaller list of homes to choose from and the market will experience a housing shortage by 2011.

Backing up Cramer’s claim is an article in Forbes Magazine back in February 2010. According to Brian Wesbury, chief economist at First Trust Advisors, the new home building stall may cause more issues down the road.

In an interview conducted by Steve Forbes, Wesbury said, "We need one and a half million houses per year just to keep up with population growth.  And then if you throw in, you know, fires and tear-downs and just worn-out properties, we need 1.6 million or more per year. Right now, we’re down to about six and a half, seven months’ inventory whether you look at new homes or existing homes."

If a housing shortage isn’t enough to consider, think about what rates may look like in 2011. Economists are saying that the deep lows we are currently experiencing aren’t going to last.

The country is currently at a turning point amid the recession. While we are still experiencing hardships and setbacks as a result from the Great Recession, some portions of the country are seeing relief, prompting many economists to believe that recovery is on the way.

What’s the best plan of attack if you are considering purchasing a new home within the coming months?  Obviously check your credit score and take the necessary steps to become fiscally fit.

Next, get pre-approved for a loan. Loan pre-approval will act as your road map to home ownership—not only will you know exactly how much you can afford, but you will also have the confidence knowing that once you’ve found your dream home, you can act quickly.

At AmeriFirst, we make getting pre-approved easy for you.  You can stop by AmeriFirst, call us at (800) 466-5626 or complete an online application.

Investopedia
http://stocks.investopedia.com/stock-analysis/jimcramer/CramersMadMoneyRecapTheHuntforProfitsUpdate3.aspx

Forbes: Housing Shortage Coming in 2011
http://www.forbes.com/2010/02/13/wesbury-housing-starts-intelligent-investing-real-estate.html?boxes=Homepagelighttop

Link (deep lows): Current Rates
http://www.bankrate.com/
 

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You never know where the next nugget of inventive, genius financial advice will emerge. Most people have relied upon their financial advisors, corporate executives, educators and parents to glean the most heady financial advice, however in today’s market keeping your ears and eyes open can be beneficial.

For example, take the guy from the Papa John’s commercials. Recently Money Magazine* interviewed some of the most influential, subjects of success stories in the nation and John Schnatter, Founder and CEO of Papa John’s Pizza was one of the chosen few.

So what does the pizza guy have to say about financial security and staying afloat during these uncertain times? Plenty. His advice is to “live below your means and be frugal.” Sounds pretty old school and something your dad would have told you, right?

Schnatter says that it was his grandfather; he affectionately referred to as “Papa” who pointed him in the direction of being frugal and fiscally conservative, which ultimately helped him to launch the multi-million dollar empire he’s at the helm of today.

He cites the example of when he used to go to the hardware store with his Papa, and noticed that his grandfather would always charge his purchases. The young Schnatter asked his grandfather why he always charged items when in fact he had the money in the bank to pay.

His grandfather’s response was, “I have money, but my credit is good.” Schnatter admits that at the time he had no idea what Papa was talking about until later in life when reflected upon the situation.

Schnatter says this lesson wasn’t that it was good to borrow money, but rather if you borrow money, you should pay it back promptly in order to maintain good credit. Pretty astute advice from one of America’s favorite pizza guys.

And what’s the point of having good credit? Good credit is the gateway to obtaining the American dream. With today’s stringent lending standards, it’s impossible to obtain a traditional mortgage with bad credit. Plus, rates are at historical lows and home prices continue to drop…now is the best time to purchase a home and fulfill the American dream.

If your credit is less than stellar, there are a few things you can do to revive it:

• Check your credit report for inaccuracies—even the smallest error can drop your score several points. Yes, you can do this for free online.
• Pay your bills on time, starting with your mortgage. If you are having trouble meeting invoice deadlines, contact your creditor to work out a plan. It’s better to be proactive and communicate than ignore a possible problem.
• Reduce the number of credit cards you have—many people have several cards that they don’t use. Get rid of them…they are only dragging you down.
• Avoid companies that tell you they’ll fix your credit for a fee. Credit repair companies may have good intentions, but in many cases if you are charged a fee you need to be careful that you are not being taken advantage of.

Above all, ask for help when in doubt. The reason why so many of your friends and neighbors turn to the professionals at AmeriFirst is because we work with clients just like you on the whole picture. Credit score a little eschew? Our loan experts can offer advice and an action plan to put you back on track so you can achieve the American dream of home ownership.

Come by for a review of your financial situation…heck, we can even order pizza. Call us today at 800-466-5626 today.

* Schnatter, John. Money Magazine. Pg. 31. April 2010

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Steve Cartwright’s introduction to the home market was with a hammer and two-by-fours at a construction site. Cartwright spent a good amount of his career building homes from the ground up, until four years ago when he turned his attention to the financial side of the business. “My wife works for AmeriFirst and told me that there was great opportunity to help people at this company.”

When Cartwright joined AmeriFirst he quickly found his niche as one of its first-time homebuyer “experts.” “Having a background in building and development, I have insight into every aspect of what’s needed to build a home.”

“I apply my previous experience in the building industry to working with first time homebuyers especially. It’s a difficult situation when you’ve never purchased a home. You can do all the research and educate yourself but at the end of the day, you still don’t know what it’s like to go through the financial and emotional process of purchasing your first home.”

Cartwright explains that he acts as both loan officer and confidant to first time homebuyers. “I act as their tour guide through the process. When they come to me, I go beyond helping them obtain a loan for the best possible rate; I educate the buyer line item by line item about ways they can improve their credit score and what to look for when searching for the perfect home.”

For example, Cartwright says that he digs deeply into his experience as a builder to point out some of the potential pitfalls of home ownership. “If you’ve never been a homeowner there are plenty of things you may not consider happening, such as what to do if you have a plumbing leak.” Other issues such as roofing, heating and cooling, electrical headaches and structural issues are also discussed and how as homeowners this is a financial responsibility that needs to be budgeted for.

He adds that he and his clients also take a sharp look at the homebuyer’s credit report. “This may also be the first experience the borrower has with examining their credit report. I take great pains to detail each aspect and item on the report, even if their credit is fine.”

Cartwright says that he explains how each area of the credit report impacts the borrower’s credit score and how the borrower could improve that aspect. For example, if paying bills on time is a problem, the homebuyer will see a drastic drop in score. Cartwright might refer the borrower to a credit counselor or offer suggestions on ways to meet bill paying deadlines each month.

“It’s all about walking them through the entire process that makes a difference to my clients. I care and see everyday ways to make the first time home buying process clearer and a journey filled with education and opportunity.”

If you’re considering a new home purchase, meet with Steve, one of AmeriFirst's top loan professionals. Contact him at (269) 488-9531 or drop him an e-mail at stevecartwright@amerifirst.com.

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It was a dark stormy night and the Collins family was huddled into the deepest recess of the house waiting…hoping it wouldn’t happen, but knowing it was inevitable.

Perhaps next you are anticipating a man with a hockey mask and a chain saw to smash through the finely appointed French doors; however it’s much worse, more dire. It’s….foreclosure.

The horror of foreclosure has befallen our friends, family and neighbors across the country. At least one in five homes is currently experiencing foreclosure and the forecast still isn’t sunny.

According to AmeriFirst mortgage expert, Colleen Marie, it isn’t over until the fat lady sings and she isn’t singing anytime soon. Marie, a 17-plus year industry veteran has seen it all in the home business but this is a first.

“I got into the business when only four loan types were available. You had to have money to back your purchase and a job. Guidelines were incredibly strict, but financial institutions knew that when they made a loan, the borrower could pay.”

“Then came the driver’s license loans, which ultimately contributed to the mess we are currently experiencing. Essentially, everyone got a loan if they had a driver’s license. We began to experience the market fallout so we went from super strict guidelines to the other extreme.”

Marie reflects on what is concerning her—the next round of foreclosures. “What makes the current situation especially depressing is that the next round of foreclosures are homeowners with A credit paper.”

She says that the only way to hit bottom and find a way out is to stop the foreclosures. “The problem is that people can’t make their payments because they’ve lost their job. Instead of working with homeowners and taking a partial payment or allowing the homeowner to rent the home from the financial institution, banks continue to foreclose.”

“Foreclosures are impacting the home value market, which impacts loans. People can’t refinance their homes because their values are lower than what they paid.”

“The market is also being choked because now guidelines are so extreme, so strict that now no one can get a loan.”

Not wanting to sounds like the grim reaper, Marie insists there is a silver lining amid the mess. “Rates are amazing right now and there is a lot of opportunity for those who have solid credit and money to back their purchase.”

She adds that the homebuyer tax credit has also had a positive influence. “People are leveraging that money pay off debts or make improvements.”

Overall, we are going to have to ride this “perfect storm” for a little longer. Marie’s best defense against a falling market is education and learning how to communicate with your financial institution.

So if your hands are clasped firmly over your eyes, move your fingers aside so you can peek out between them. It still may be scary out there, but keep your eye on the prize—the bottom may be right around the corner.

If you'd like to talk further with Colleen, one of AmeriFirst's top loan professionals, contact her at (269) 968-6100 or drop her an e-mail at cmaire@amerifirst.com. You'll be glad you did.
 

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Its tax time again folks, but this year homebuyers are feeling a little more anxious to lay down their cash for a new home. Like Cinderella at the ball, your homebuyer tax credit will go “poof” at the stroke of midnight on April 30th.

Buyers have been lapping up one of the many benefits of purchasing a home. In addition to historically low rates and discounted prices, established buyers have been enjoying a $6,500 tax credit for buying a more expensive home and first time homebuyers have raked in as much as an $8,000 tax credit.

As the deadline nears, the market may become flooded with buyers interested in cashing in before their tax benefit is history, however the experts at Money Magazine say not so fast.

Take into consideration whether home prices have bottomed out in your area.  If you want to buy in a neighborhood that hasn’t bottomed out, you may want to reconsider jumping into anything. A substantial price drop would certainly more than offset what you will receive from Uncle Sam’s tax credit.

Also, if you already own a home and are coming late to the game you may not be able to get out of your current home in time.  It’s certainly not worth it to carry two mortgages just to receive that $6,500 tax credit, especially since the average home sits on the market for approximately 110 days before being sold.

Sure, you can play chicken with the market and hope that with the uptick of buyers wanting homes, yours could be one that sells fast.  But do you want to gamble in hopes that your home sells in harmony with your purchase?   If you want to know how long homes are taking to sell, check out http://www.zillow.com and click on market reports to get the lowdown on what’s selling and how long it’s taking to sell.

But before you do anything, call one of our mortgage professionals at AmeriFirst. Because you need to act fast, you should get pre-approved for a mortgage before you make an offer on a home.  Being pre-approved will not only start the mortgage process faster but will put you in a more positive light in the seller’s eyes. 

We know you are ready to get pre-approved. That’s why we made it so easy!  Click here to complete our online application or we can do this the old fashioned way and you can simply call us at 800-466-5626 today. Either way, we look forward to hearing from you soon!

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To many of us, those “free credit score report.com” commercials are catchy and downright cute. In addition to the memorable jingle, each ad promotes a lesson as to why checking your credit score is important. From only having enough credit to purchase a “sub compact” car to needing to work at a local renaissance fair or seafood restaurant, viewers get the idea that not checking your credit score can result in hardship.

Why is our credit score important and what exactly does it mean? Generally, your credit score tells lenders what you’ve been doing financially for an extended period of time. A few components include recent credit activity, if you are delinquent on loans and own or have owned property. The credit bureau assigns you a score that tells the lender your likelihood of paying back a loan. An excellent credit score hover around 800 whereas a terrible score rock bottoms anywhere below 600.

Many Americans fall somewhere in between those scores and there are steps you can take to remedy a failing score. However, do you know which components make up your score?

Stay tuned to our next blog where we’ll discuss those components. Or call one of our AmeriFirst loan professionals to review what you need for a good or excellent credit score at 800-466-5626 or visit our contact us page to send us your information online.

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Back “in the day” completing a loan application meant that a lot of trees lost their life at the hands of the local lumberjack. It was one of the necessary evils of doing business—humans needed to make deals but unfortunately trees had to die.

At AmeriFirst we can’t continue watching the needless slaughter of innocent trees and are doing something about it. In fact, there is a rumor going around on the Internet that killing trees has something to do with global warming…something to ponder.

Your lender is doing our part to save the trees by offering you an electronic application. We offer three ways you can apply for a loan from the comfort of your easy chair:

1. Complete a secure online application form—saves plenty of trees and we’ll follow up with you regarding the additional necessary documentation.
2. Download and print our application—not as nature friendly but just as easy to complete. In fact, we offer you an application that allows you to complete it on your computer, print and deliver to us. No hand writing involved!
3. Online application request form—if you want to chat before completing an application, we want to talk to you! Complete a short electronic information request form and we’ll get right back to you and zip an application over to you ASAP.

Ask us about electronically submitting some of your necessary forms along with your application too. Together we can save the trees. Contact your tree loving friends at AmeriFirst today at 800-466-5626. Or, save another tree by using our online information request form by clicking here.

HUD: http://www.hud.gov/buying/comq.cfm

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At this point you are thinking, “O.K. wise guy, you’ve told me what I need but where am I going to find all of this stuff? I don’t save every piece of paper under the sun and just thinking about how and where I need to get every piece of documentation makes my head feel like it’s going explode.”

Calm down and breathe. We wouldn’t leave you high and dry with a list of marching orders. We’re going to TELL you where you need to go to obtain your information so stop wringing your hands and read:

• Social security numbers for both you and your co-borrower—include this number on your application. For more information about how to obtain a new card: Visit SSA Online
• Copies of your checking and savings statements from the last six months—contact AmeriFirst at 800-466-5626 for account statements or contact your financial institution directly for copies
• Documentation of any bonds or stock holdings—your investment or securities officer will furnish these if you ask
• Recent paycheck stub—obtain from your employer
• A list of credit cards, along with outstanding balances—if you are unsure about the number of cards you have (you may have forgotten about a card and never canceled it), obtain a list from the Federal Trade Commission at Helpful Information from the FTC
• A list of account numbers and outstanding balances (such as an auto loan)—your monthly statement is ample proof
• Copy of the last two years’ income tax statements—don’t have copies of your return? Contact the IRS (Visit the IRS Website) to request a copy. Note, the IRS charges a nominal fee, plus it can take up to 60 days for your copy to arrive
• The name and address of someone who can verify your employment (possibly your employer).

Still not sure? No worries, we are here to help with any aspect of the loan process! Contact one of the professional, friendly officers at AmeriFirst and we’ll walk you through the process. Contact us at 800-466-5626 or, if you are more of an online request kind of person, click here and visit our contact us page today.

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We know you are over it…seems like no matter where you turn these days there is a request for more paperwork. Ever get one of those unreasonable requests to remember the last time you paid a bill in 1979 (maybe that is exaggerating it a bit), but we get it. Let’s be honest, when you are looking for a new home you have to work to find the house, then work to finance the house.

It can all seem like such a hassle, and with recent tightening in the credit markets paperwork is even more important today than ever - there’s no denying it. HOWEVER, we don’t make the process detail centric because we are sadists. Actually, we want the details to PROTECT you and your loan.

How does asking for things such as detailed copies of your income tax statements and outstanding loan balances protect you? Think back three to five years ago when a new crop of “lenders” joined the mortgage scene.

These “medicine men” peddled some magical loans that didn’t require a lot of due diligence and just about anyone qualified for a mortgage – even when some really should have continued renting. It was easy (or so they thought)! No more having to provide proof of employment or other loan balances to obtain a mortgage—you want it, you got it!

Well…flash forward to today and the majority of those “get a loan quick and easy” borrowers are in foreclosure. Their “lender” didn’t protect their best interests by not asking for necessary documentation, analyzing their situation and making recommendations for the best loan to make their needs. It’s not that we like saying “no” to borrowers, but we don’t want to put you in a loan you cannot afford – that’s not good for either of us long-term.

So while you are fishing out paperwork and perhaps cursing our name under your breath, keep in mind we do this to keep you safe and in your home. We want both of us to look back at this transaction a year or two down the road and make sure that we’re both still happy we did it.

Want to know more about what we do to keep you and your loan safe? Call us at 800-466-5626 or you can contact AmeriFirst online. Either way, we look forward to hearing from you soon.

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