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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By now you are more pumped than a Detroit Lions fan on a day when the team actually won one. You know why refinancing your loan could be advantageous, how equity in your home can make your life easier and that the time is right to refinance.

However, do you know what you need to make that refinance happen? AmeriFirst has a handy dandy refinance checklist available online that can help you gather what you need.

Gathering this paperwork and submitting it along with your application will expedite the refinance process and get you on your way. Don’t forget about items such as:

• A copy of your title and insurance
• Paycheck stubs
• Proof of income letter from your social security office
• Paperwork regarding bankruptcy, divorce and child support

Review the complete list online and call us if you have any questions at 800-466-5626. If you’d like to submit your questions online, simply visit our Contact Us page and complete the quick and easy online form. Don’t forget to tell us how you’d like us to respond—phone or e-mail.

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In prior posts we threw out a few reasons why refinancing now might be a good idea and how a home improvement cash out loan can make life a little sunnier. But in this blog post, we are taking a more serious tone. A few posts back, we touched on the fact that rates are at historical lows. These lows are so low, the next time you will see them again may be when the blue moon shows up next time on New Year’s Eve.

Seriously folks, we don’t want to you miss this train in hopes they may eek down a little further. Carpe diem—call one of our loan professionals TODAY to learn more about how refinancing your mortgage can lock you in at one of the lowest rates ever AND save you a bundle of money each month.

While rates continue to hover around 5%, they may start to increase, but we don’t know when! Time to have a heart to heart talk with one of our loan experts to see how refinancing can save you money.

Contact AmeriFirst today at 800-466-5626 to discuss how refinancing your loan can save you money or contact us using our easy online mortgage application.

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How does that hideous kitchen have a connection to mortgage refinance? If those unrestrained orange and “baby poop” brown kitchen cabinets aren’t doing it for you anymore, the best way to eradicate the nightmare is to cash in on your home’s value and REPLACE them!

A home improvement cash out refinance is one of the best ways to accomplish a myriad of tasks:

• General home improvement
• Pay down high credit card bills
• Finance college or a wedding
• Get rid of the clunker and buy a new car

A mentioned in the previous blog post, a cash out refinance can also be tax deductible—always a nice bonus around April 15th!

You can do a quick calculation of how much cash you can extract from your home by determining your loan’s current balance compared to your home’s value. We apply a percentage amount to determine your exact loan amount.

So if you are ready to exorcise those disco-era decoration demons, we have the right program for you! Start your mortgage application online now or call us today at 800-466-5626!

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With rates continuing to be at historic lows, there’s absolutely no reason NOT to refinance. Take advantage of these incredible rates—we may not see them again anytime soon!

We created a quick list of five good reasons why you should refinance your mortgage:

1. Decrease your monthly payment. More money in your pocket each month is vital during this aggressive recession. The easiest way to pay yourself more money is to lower your monthly payment by refinancing at a lower rate.
2. “Fix” your mortgage rate. Still on the adjustable bandwagon from years ago? You may want to consider locking in at one of the lowest rates ever right now, before rates begin to rise. Talk to one of our loan officers about changing your adjustable rate to a fixed rate today.
3. Don’t be a “balloon boy.” Just like the balloon boy’s father, Richard Heene, you don’t want to get into trouble because of a balloon. Balloon programs on your mortgage work well when you want to artificially lower your rate (and payments), however if you still own the property by the end of the term the entire balance of the loan is still due to the lender.
4. Kick PMI to the curb. Although PMI may sound like the latest text message code the kids are using to throw off parents, PMI is actually Private Mortgage Insurance. PMI is something homeowners have to obtain if their cash down payment is less than the standard 20%. This insurance protects the lender in case of loan default. However, as your loan balance lowers and your home value increases, you may be able to remove the insurance by refinancing, which can save you money every month.
5. Increase your home’s value using its equity. If you want to increase your home’s appeal for a future sale or if you’ve had it with the mossy green carpet in the rec room, cash in on your home’s equity and make changes. Ask about a tax deductable cash-out mortgage refinance transaction to get started!

We make refinancing simple at AmeriFirst! Click here to begin the mortgage application process or contact one of our loan professionals who can answer your refinance questions at 800-466-5626 today!

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The journey to home ownership is 10% financial and 90% emotional. Once you’ve found your dream home you want to hurry through the financial process so you can move in and begin your life as a homeowner.

What some potential homeowners forget during this emotional process is to include property taxes and insurance calculations in their financial monthly payment. All too often homeowners see the bottom line number for their mortgage, think they can squeak by with that payment and then find themselves in financial turmoil when the total bill comes due during the first month.

A good lender (like AmeriFirst) always secures your possible tax and insurance rates and includes them in the final payment number before you purchase the home. In fact, you should know this number before you begin the house hunt. This will help you avoid falling in love with a home that is financially out of reach.

A few years ago, this scenario happened all too often and many families turned to the subprime lending market to “make their dream happen.” Unfortunately most of these families are now up to their elbows in debt, collection agencies are calling or worse, had to relinquish their dream home to foreclosure—all because they didn’t consider every aspect of home ownership.

At AmeriFirst we won’t let that happen to you. We will work with you using current tax and insurance rates to assist you before you begin the search, so once you’ve found the perfect home, you will know that you can afford to build a life there.

Talk to us about your home ownership goals. We will run the numbers to arrive at the best home ownership scenario that meets your current and future needs. Our loan professionals are extremely well versed in property tax and insurance requirements and are ready to assist you.

Ready to begin your life as a home owner? Contact AmeriFirst today at 800-466-5646 or contact us online to request additional information about our customizable loan programs.

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From reading previous blog posts you have probably gathered that owning is better than renting and that the customizable loan programs at AmeriFirst can help you on the path to home ownership. We’ve also mentioned the word, “equity” quite a bit and you may be wondering how exactly do you build equity by being a homeowner…and what exactly do we mean when we use the term “equity?”

Simply defined, your home equity is the portion of the home you own. Your equity in the home rises as you make monthly mortgage payments toward completely owning your home. The more payments you make, the closer you get to owning the home outright. In basic terms, your equity is the difference between the property value and any outstanding loan balances.

Building home equity can be compared to having a savings account. You are virtually paying yourself PLUS enjoying the benefits of a homeownership lifestyle such as creating and decorating your space without limitations imposed on you by a landlord.

Benefits of building equity abound for the individual homeowner. Let us review your financial situation to determine how you can get the most equity from your home. Our loan programs are fully customizable to your individual needs so call us today to arrange for a one-on-one consultation.

Call AmeriFirst today at 800-466-5646 or contact us online today!

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We discussed why you should own your own home but sometimes that’s more easily said than done. You need cash to use as a down payment and not everyone has the traditional 20% needed for a down payment in their savings account.

Even if you don’t have a bevy of cash to put towards a mortgage down payment (or a treasure chest full of gold coins in your basement), you can still obtain a loan that works for you. At AmeriFirst we customize loan solutions to fit your needs and our programs aren’t one size fits all.

That being said, we still continue to adhere to strict lending standards. We won’t put you in a loan unless we are completely confident that it meets your financial needs (and is something that you can afford). Even during the mortgage hype when lenders were extending loans to families who clearly couldn’t afford the home, AmeriFirst is proud to be the lender that has never fallen victim to that type of greed and always has our customers’ interests front and center.

Home ownership is only a phone call away! When you call one of our mortgage professionals we will scrutinize your current financial data and your goals to arrive at the perfect loan scenario. If the time isn’t right for you to own a home, we will create a customized plan that will put you on the path to future home ownership.

Contact your home loan partner at 800-466-5626 or click here to send us an e-mail request.

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When I was younger, I remember my dad telling me that it was better to own than rent. “When you rent, you are just throwing your money away,” he’d say with a scowl. “Own your home and you can build equity and credit!”

“Equity? Credit? What’s that and why would I possibly want that?” a younger version of me would ponder. Renting is great because you can just stay in a home without having to deal with the maintenance (in many cases) or commit to that property forever.

Today, the older, wiser, educated “me” will tell you why owning is smarter than renting: When you own your home you are paying yourself and not the mortgage on someone else’s property.

Perhaps if my father simply said it like that, the light bulb would have popped into the “on” position and I would have understood why owning is smarter. Other reasons to consider being a homeowner (that your dad may or may not have told you):

• You can pay virtually the same (and sometimes less) making your mortgage payment less than renting.
• Paying mortgage interest has some tax advantages, which may mean less money paid during tax time (be sure to check with a professional tax advisor for more details).
• You can build security owning your home—you never have to worry about surprise spikes in rent or being evicted at your landlord’s whim.
• Owning a home is investing in you and your family’s future. Your home is considered as part of your savings and investments, making it one of the most valuable assets you can own.

Want more reasons to be a homeowner and stop paying your landlord’s rent? We can give help you weigh your options and determine what it will take to become an owner instead of a renter! Rates are at historical lows and it’s a buyer’s market now, so what are you waiting for?

Contact AmeriFirst today at 800-466-5626 or send us an e-mail and ask about the myriad of home loan programs, that we can customize to fit your life!

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What do you do if your appraisal comes back considerably lower than you thought? Do you have recourse or can you have the appraisal changed? Unfortunately lower than imagined appraisals are common these days. A few years ago your home was worth considerably more and now that you need to sell, you want to make money.

If you believe that the current appraisal is way off base you can order another appraisal. Every now and then an appraiser can get it wrong. However, before you go through the appraisal process again, take a close look at current home prices in your area and the comparables to determine if a new appraisal is in your best interest. Ordering another appraisal will delay the sale or purchase of the home, leaving the door open to the possibilities of falling values (which could be a good or bad thing depending on which side of the game you are playing). Additionally, you will also need to pay full price for the subsequent appraisal.

In some cases, actual facts are written incorrectly on the report. That is why it’s important to scrutinize the report not only for the overall value but also each detail. Review the report immediately and bring any error to the appraiser’s attention. Back up your findings with documentation and facts to remove the element of bias.

The professionals at AmeriFirst are trained experts at helping you with the appraisal process and working with appraisal reporting. Please contact us today with your questions about how to obtain the most accurate appraisal for your property at 800-466-5626. Contact us online - we are here to answer your questions today!

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You have a general idea of how the appraisal process works and how prices today differ from the appraised prices from the past. Today’s post deals with many of the frequently asked questions homebuyers have when it comes to appraisals:

• Do you really need an appraisal? Yes, the appraiser provides an impartial third-party report of the property’s value. The appraiser uses education, training and experience to arrive at a non-biased value that is used by both the client and lender to determine the loan.
• How long will the appraisal take? Depending upon the size and condition of the property, the actual appraisal inspection can last from 15 minutes up to several hours. Post inspection the appraiser analyzes and reviews all inspection findings and will generate a report. The reporting process can take a few weeks to several months depending upon the detail in the inspection.
• What does the appraiser look for during the inspection? A few items that include the home and property’s square footage, permanent fixtures, overall condition property (inside and out) and the quality of the overall construction.
• How can I hasten the appraisal inspection process? One way to help the process is to provide a survey of the house and property, a deed or title, a recent tax bill, copy of the original plans and specifications and a list of personal property you plan to include in the price of the home. These documents will help achieve a more accurate and quicker appraisal inspection.

Need more information? Contact AmeriFirst today at 800-466-5626 or contact us online to send us an e-mail request.

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Remember a few years ago when the real estate bubble inflated the value of everyone’s home? Unfortunately once that bubble burst, so did the value of our homes. According to a recent article in The Maryland Gazette, home prices have plummeted 20% since 2006.

Michigan Realtors say that although home prices have suffered a significant drop, the exact percentage amount varies from county to county. One agent in Northern Michigan contends that home prices have stabilized in the lower priced market and drops of 10% in higher priced homes (over $400,000). However, quite a few Michigan Realtors say that they’ve seen home prices decrease up to 30% since 2006.

Get an idea of where your home’s appraised value right now! Click on Zillow right now to view your home’s current appraised value along with your home’s square footage and year built but also area comparables. You’ll also see an aerial photo of your home along with estimated appraised value of surrounding homes in your neighborhood.

Want to know more about how market conditions influence the rise and fall of appraised home values? We can help! Contact a loan representative at AmeriFirst at 800-466-5626 or visit our Contact Us page to send us your inquiry today.

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You often hear about “waiting for the home appraisal” as being a make or break scenario for obtaining a loan. Why is the appraisal process so important? An appraisal helps the lender determine the loan amount based on the value of the property. The higher the appraised value, the more amount of money the financial institution is willing to lend.

Certified appraisers consider a variety of factors when determining an appraisal. They will examine the property’s interior and exterior, overall home condition, upgrades and extra amenities and square footage. The home is also compared to other similar nearby properties in terms of price and value which may influence the final appraised value.

The appraiser completes a report, along with photographs, that is submitted to the client and or the lender’s underwriting department. The lender will use the report to make a final loan decision which is communicated to the client.

Learn more about the process AmeriFirst takes to determine your loan. We have professional lenders on staff who are ready to assist you and answer any questions about the appraisal process or any aspect of mortgage lending. Contact us today at 800-466-5626 or send us an e-mail request.

Source: eHow.com

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The home buying process can rattle the nerves of even the calmest people.  It’s an emotional rollercoaster tied to a financial and pragmatic process which can turn the dream of owning a home into a nightmare.  

One of the best ways to reduce home buying stress is to get pre-approved for your loan before you begin the house hunt.  Being pre-approved allows you the comfort and luxury to search for the perfect home knowing that when you find it, you’ll be approved for financing. 

There are other benefits of being pre-approved before you house hunt:

• Sellers may give you preferential treatment knowing that you can finance the purchase.  In the event of a bidding war, sellers may look upon your application favorably versus another buyer who hasn’t secured financing.
• During a fluctuating rate environment, you can lock in a lower rate if you are pre-approved ,the moment you have a signed purchase contract, which could save you thousands of dollars during the life of the loan. 
• Being pre-approved reduces credit surprises.  If you wait until the last minute to secure financing and find that you have a few issues that need to be resolved with your credit, you could miss an opportunity to purchase your dream home.  Get pre-approved, deal with any surprises and then look for the perfect home.
• You’ll have a concrete idea of how much you can afford if you are pre-approved.  Once you know exactly how much you can afford, you can search for homes within your price range and not fall in love with a home out of reach. 

We can assist you with every step of the pre-approval process and get you on your way to homeownership.  Contact the mortgage team today at Call us at 800-466-LOAN or send an contact us using our easy online form.

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