Archive for the ‘Spring Hill Lender’ Category

postheadericon Home Buyer's Guide To Purchasing A Home- Part 2

As promised, here is part 2 of the Home Financing Guide for borrowers looking to purchase a home in Spring Hill Florida and the surrounding Tampa Bay Real Estate Market. In this section, we will be looking at different aspects of the appraisal process. A Real Estate Appraisal is an important part of the lending process and can determine the outcome of your transaction beyond a borrowers own qualification. In addition to any borrower requirements, the property iteself has to also qualify in order to meet the lenders requirements. Different loan programshave some different requirements with regard to how the property is appraised and the condition of the home is assesed. As always, if you have any questions regarding this process, please feel free to contact me at any time.

Beyond the Borrower’s qualification for obtaining a loan (credit, ability to pay, etc.) the value and condition of the home is the next important consideration. The home is the collateral for the mortgage loan which means that if there is a loan default, then the property is taken and typically sold to cover the unpaid balance of the home loan. Therefore the home property needs to have sufficient value and be in good enough condition so that if default occurs, the lender can sell and recoup the loan money.
There seems to be a lot of confusion between the difference of a County Assessment and an Appraised Value. These are two different thins yet many people associate Assessment with Appraisals. A County Assessment is a method of declaring property value so that a county or other government entity can levy a tax on that property. It is not a true market assessment of what the home could sell for nor is it based on market data. When property values were appreciating rapidly the rule of thumb was that Assessed Value was lower than what one could actually sell the home for so it was understated. But when property values dropped and government entities were short of funds then Assessed Values became higher than what the home could sell for. This makes the use of Assessed Values an unreliable indicator of true market value.

What is A Real Estate Appraisal? An Appraisal is considered to be a process that provides an accurate figure of what the home could actually sell for in the current market.A licensed, professional Appraiser will typically conduct a walkthrough of the home and property, take measurements and pictures and assess the condition of the home. They will then find similar homes (size, features, etc) that have recently sold in the area using county records and determine the subject home’s value based on the actual sales price and features of the similar homes. This is what the term “Comps” (comparables) come from. Armed with many other details including zoning, surrounding neighborhoods, and average time to sell a similar home, the Appraiser will determine the market value of the home that the lender will use as the collateral for the home loan.
If the borrower is applying for an FHA, or VA loan then that Appraiser must be approved by those agencies. The appraisal requirements for those kinds of loans are a bit more stringent and may require repairs that need to be completed and re-inspected prior to the loan being approved and funded. Buying a new home under construction requires additional work on the Appraisers part including a review of the materials list, the blue prints and the builder contract to predict the value of the home after it has been constructed.

Due to past abuses in the Lending and Appraisal communities many regulations and restrictions have been put in place to prevent Appraisers from being coerced into provided inflated values.The Home Valuation Code of Conduct (HVCC) and new regulations from HUD have the set the tone for the independence and separation of Appraisers to individuals (such as Loan Officers and Borrowers) who are directly involved in the loan origination process. The Appraiser cannot be told what the target appraisal value needs to be (although they will have a copy of the sales contract). The Loan Officer is not allowed to have direct contact with the Appraiser and in fact are not allowed to even select the Appraiser for the loan. The Appraisal Management Company makes the Appraiser selection and conducts all communications with the Appraiser. The Borrower (home owner) cannot try to persuade the Appraiser as to the condition or value of the home and property in any way. This hand-off approach allows true independence and reduces undue influences others may have on the valuation of the home.
Appraisals costcan be anywhere from $400.00 and up depending on the size, location, and use of the property being appraised. It may be important to wait on the appraisal order until one is confident that the loan has a good chance of approval. Otherwise the appraisal may be a sunk cost that cannot be recouped if the loan does not get approved and subsequently funded. We always will hold of on this part of the process until much of the approval process is complete and we are confident that the loan will close, this eliminates wasteful spending of the borrowers own funds and safeguards our clients from having wasted their funds. Generally, by the time the appraisal is complete much of the underwriting is already complete and many of the borrowers conditions have already been satisfied.
Be on the look out for the next series in the Home Financing Guide where we will take in depth look into Interest Rates and go over all the different things that determine rates, including buy downs, paying points and credit. If you have any questions regarding your home purchase in Spring Hill Florida.

Steve Fingerman
Branch Manager

Allied Home Mortgage
4117 Mariner Blvd.
Spring Hill FL, 34609
Office 352-688-7949
Cell 727-946-0904

Spring Hill Mortgage Lender

postheadericon Home Buyer’s Guide To Purchasing A Home- Part 1

I have been asked lately if I have a guide of some type that would help educate first time buyers with regard to to all the things they should know about buying thier first home. With that in mind here is the first part of what will be a multiple series of blogs designed to tell you everything you need to know about buying and financing a home from A-Z. Since one of the biggest factors in obtaining mortgage financing is credit, let’s dive right in with information you need to know about credit, how credit scoring works and what you can do to correct errors in your credit report.

This Home Financing Guide is designed to provide information so that you can reach your home financing goals while avoiding mistakes along the way that can not only delay the process but can be costly as well. This guide will be broken down in several posts and I will try to keep it as comprehensive as possible. Check back for updates often as this may easily be a 7 or 8 part blog giving you the most comprehensive information you can find about purchasing and financing your new home. If you have any questions while reading the material, please feel free to call me any time.
                                              Steve Fingerman
                                              Branch Manager

Allied Home Mortgage
4117 Mariner Blvd.
Spring Hill FL, 34609

Your credit is one of the key factors in your ability to obtain home financing. You may have heard many companies talk about credit, about how important it is and how you need to know what is on your credit report. They are absolutely right. Your credit not only determines whether you qualify for a home loan, it also determines costs such as interest rate on credit cards, premiums on auto insurance, and in fact it can be used to screen your employment. You credit is definitely important.

Credit is made up of several components all of which become part of your credit report.

  • Applications for credit
  • Number of open accounts credit accounts and account age (credit cards and loans)
  • Accounts Balances
  • Payment history (on-time or late)
  • Collections, foreclosures, repossessions
  • Bankruptcies, liens and other public records
  • Past addresses, employers and names
  • Your calculated credit score (FICO score)
Your credit score (commonly called a FICO score by many) is the most commonly used key indicator of your credit worthiness. Many creditors rely on the credit score since it closely measures the risk that a prospective borrower presents. The lower the credit score the more likely the borrower will default or be late on their payments. Credit scores range from a low of 350 to a high of 850. The average consumer has a credit score in the 680 range. Here is a quick scale of credit scores and how they are rated.

A person that has a credit score below 620 will have a difficult time obtaining a mortgage loan. (There used to be a category of loans called Subprime but given the high risk and abuse that program is all but gone today). A credit score between 620 and 659 may need to select a government sponsored program to qualify. If the credit score is between 660-719 most loan programs become available. But at 720 and above the best interest rates and terms are available to those Borrowers.
Each of the three major credit bureaus will assign a credit score. When it comes to mortgage lending all three credit scores are used in the evaluation of credit with the middle score of the three being the determining factor. For example if a prospective borrower had scores of 719, 728 and 721, the 721 would be the determining score (the middle one). One other important factor to remember is that if you have a co-borrower (e.g. spouse) that the lower of your and all co-borrowers middle credit score will be the score used for loan qualification.

750 and up Excellent
720-749 Good
660-719 Fair
620-659 Marginal
619 and below Poor

Of the various components that affect your credit score the one that has the most impact is payment history (making on-time payments). That is followed by your credit balances (how much you owe), and how long you have had established credit. The chart to the right shows the importance of each of these factors. However, it should be noted that if a person has a recent bankruptcy, foreclosure, or collection account, those kinds of situations will cause the credit score to drop sharply.
It is important that you review your credit report on a periodic basis. Often individuals find that there are errors and inaccuracies that are causing their credit report to look worse that it really should be. Sometimes credit entries are posted to the wrong account. You may also find collection accounts for medical bill that you thought your insurance had covered. There are some estimates that over 40% of all credit reports have one or more errors on them. But if you don’t look at your credit report, you would not know that they were there.
You can obtain your free credit report from This website is sponsored by the big three credit bureaus: TransUnion, Experian and EquiFax. Do not go to other credit advertising websites such as unless you wish to buy additional services. On those websites you may be lulled into a free credit report but in order to receive it you have to sign up for a trial subscription to a service. You are allowed one free report from each of the major credit bureaus each year (up to 3 free reports). Given that it may be a good strategy to obtain a credit report from each credit bureau four (4) months apart and that way you are able to look at the report multiple times each year at no cost to you.
If you do find problems with your credit report, first contact the creditor (card issuer or loan holder) that the problem lies with. If you cannot get a satisfactory resolution with the creditor then contact each of the credit bureaus that shows the reported credit item in question and conduct a formal dispute by writing letters to the credit bureaus stating what the issue(s) is and requesting correction(s) to the credit report. The credit bureaus are pretty helpful when it comes to clearing up issues such as these. You have the right to an accurate credit report under the Fair and Accurate Credit Reporting Act. Anytime you get a positive response from the creditor be sure to ask for the confirmation of correction or removal in writing and keep that document for future reference.
For Additional Information about Credit and The impact it can have on your Mortgage please call me to discuss your needs in detail. I am available any time, and will do my best to give you the best information possible so that you can make sure we are securing the best possible terms on your first home.

Steve Fingerman
Branch Manager
Allied Home Mortgage

Office 352-688-7949
Cell 727-946-0904

postheadericon Mortgage Brokers Are Dead, Is The Finacial Crisis Over?

BROKERS ARE DEAD? Really? I must have missed the bulletin on that one. It still amazes me how the entire regulatory community along with the Big Banks that are Too Big To Fail continue to spin the financial meltdown as something that was entirely the fault of Mortgage Brokers. It’s interesting to point out that there has never been a single Mortgage Broker who made any type of lending or underwriting decision what so ever. Yet somehow it has been the focal point of all regulatory reform, and the single biggest item that keeps getting pointed to as the reason for the entire housing mess.
While it’s true there may have been bad brokers during the housing boom, the uglier truth that no media or regulator wants to cover is that brokers had absolutely no lending authority what so ever! None! So if someone has no authority to make any relevant decisions then one has to ask; Who Did Have The Decision Making Authority? Well that one is simple, that would be the Bank. The same Too Big Too Fail Bank who would have you believe that none of this has been there fault or doing. Too Big Too Fail Banks along with other Bankers and Wall Street Banking Firms created all kinds of Sub Prime loans and then pushed them onto Brokers as their pawns to sell the products they created. Brokers never had the power to make the final decisions on funding. To make matters worse, many of the products they created were designed to fail and they knew exactly when the defaults would more than likely occur. This allowed Wall Street to simultaneously place bets against the very mortgages they were designing as sort of an insurance policy for when they finally blew up in everyone face.

Case in point, I give you Goldman Sachs who did exactly that.

The Truth is we need financial reform, but not in the form that we have seen thus far. HVCC killed the appraisers and made appraisals more expensive and lower in quality than we ever saw before, while at the same time allowing the Big Banks to own and operate some of the largest appraisal management companies in the country. Wasn’t the point of HVCC appraisal Independence? Now Loan Officer Compensation regs are doing to the originators what HVCC did to appraisers. Yet we still have not seen much reform with regard to the real culprits, the Too Big To Fail Banks who created, and pushed the products while telling consumers, regulators, and brokers alike that they were all safe. They did this while knowing the opposite was true, but somehow it seems the entire media and congress wants to sweep this ugly truth under the rug. Watch the video below, then let me know what you think? You opinion, views, and input matter and should be shared with all your State and Federal Regulators, and Representatives. After all, they do all work for you don’t they? Perhaps they need a prod and reminder of that, because the ones that seem to be represented best are not “The People” they are Too Big Too Fail Banks.

Branch Manager
4117 Mariner Blvd
Spring Hill FL, 34609
Office 352-688-7949 Cell 727-946-0904

postheadericon Purchasing a Foreclosure in Spring Hill FL? Some Unexpected Expectations To Watch Out For

Buying a Distressed Property?
Here is the skinny on what you need to know to protect yourself in today’s Real Estate Market.
With all the distressed properties out there, and all the short sales there are a number of things that buyers need to be aware when shopping for a home. Buyers today should be extra cautious, as the saying goes: “It’s Buyer Beware”. That has never been more true than it is today, so here are the basics you should be aware of.

Appraisals can Kill Your Deal.
With the implementation of HVCC which is basically supposed to provide appraiser Independence, lenders don’t have the same control over appraisals that they used to. HVCC requires that a 3rd Part Management Company be used in ordering and procuring appraisals. The problem with that? Well many times a management company will “farm out” the appraisal to the lowest bidding appraiser rather the most experienced or familiar with the area. The end result, a poor quality appraisal that may not necessarily reflect the true local market value of the property. It’s funny that this is even happening since the end result is the exact opposite of what the rule was intended to do, but none the less, this is the reality of it. According to the National Association of Realtors about 10% of transactions nationally die each month due to issues with Appraisal Values coming in lower.

What can you do to guard against that? For starters, carefully interview your lender. Find out details regarding their appraisal process and who the management company is. For example here at Allied Home Mortgage, Yellow Sign is the only management company we use to order appraisals and they are also an affiliated business. Although they operate independently, their policy is to only hire and approve appraisers with a minimum amount of local experience and also a proven track record of quality work. To further ensure appraisal quality, Yellow sign limits the range of how far they will go for an appraiser to within the subject property area. This ensures that only local professionals who know the local market are going to be used. You can also further protect yourself by making sure you use a knowledgeable local Realtor who has experience in the local market and knows the pricing trends and current market activity. Your Real Estate Professionalshould be able to provide a detailed Comparative Market Analysis also known as a CMA on the property you are interested in buying. A proper CMA will help you and your Real Estate Professional determine what to offer and will make sure your offer and final accepted contract are in line with where the property will actually appraise at.
Undisclosed Problems With The Property
Unfortunately, if you are buying a home from a Bankthat has been foreclosed on the Bank is under no obligation to disclose anything to you about the property. These sales are truly buyer beware and it’s crucial that you and your Real Estate Professional implement a carefully thought out Due Diligence Process. In our local are of Hernando and Pasco County sink holes are a prevalent force of nature and should be thoroughly investigated prior to commencement of any Foreclosure Purchase. Un-repaired Sink Holes will devalue your property faster than setting it on fire and watching it burn down. Your Real Estate Professionalshould check with all local building and zoning departments to ensure no prior permits were pulled for both Sink Hole Repairs and all other alterations. An open permit that has never been closed out can lead to numerous other issues. At best case, there may be a fine you have to pay in order to get the permit closed out and final-ed. A not so best case scenario may be the County asking you to tear out anything that was previously done and bring it to code, that’s something that can easily add up to thousands of unexpected expenses after you close if it was unknown at the time of purchase. At the very worse case scenario, you may find out that there was prior Sink Hole Activity that was not repaired. If this is the case, you should RUN fast and far from the property, additionally if discovered by your lender it will not be something they would be willing to finance anyway. Some prior Sink Holes may have been repaired by the previous owner prior to the bank taking possession and often times the building department will have all the necessary documents to verify the completion of the repair the scope of the work and even the engineering reports. These cases may offer a huge negotiating opportunity, assuming of course you are comfortable with a repaired Sink Hole. In any case, you and your Realtor’s due diligence will go a long way in protecting you from a financially devastating mistake. For information about Sink Holes and the Stigma that goes with them, Jeanne Gavish at Keller Williams in Spring Hill Fl wrote an excellent piece on Sink Holes and The Stigma of a Sink Hole.

Your Lender Demands Repairs
Your Contract may be an AS IS Contract, and you may very well have agreed to purchase the property with all it’s inherent minor defects knowing that you can easily deal with the repairs later, but do not expect your lender to look at it the same way. In today’s market, banks don’t really want another distressed property, especially on a newly originated loan. Things like cracked windows, missing A/C systems or damaged dry wall will more than likely be red flagged by your lender. When looking at homes that need extensive or significant work the Loan Type that you are trying to procure can be the difference between a successful closing or a bout of frustration that will leave you pulling the hair out of your head. FHA has a great program called a 203K. It’s essentially a loan that is designed to let you acquire a property which may need repairs and then fund those repairs into your loan. There are 2 types of 203K loans, a streamline 203K and a full blown 203K. The difference is the streamline 203K Loan will limit the dollar amount of the repairs to no more than $35,000.00 and will generally limit the number of items to be repaired to only 2 items. Although Allied will allow more than 2 items on a streamline 203K to repaired many other lenders will not, and although we may allow for more than 2, it’s not going to a blank check to repair more than a few different repair types. If it needs extensive work, opt for a full 203K. Expect the time-line of your closing to stretch a little further on a full 203K loansince it will require a HUD Counselor work with you and your selected contractor. Typical closing time for these is about 45 days. You should also retain the services of a reputable and properly trained Home Inspector like Jim Calleri at Affirmative Home Inspection in Spring Hill. A good home inspection will save you from unexpected surprises down the road and will save you from potential financial disaster later.
Title/ Deed Problems With Property

By now we have all heard of Robo Signing, and the foreclosure fraudthat may have occurred on thousands of Foreclosure cases across the country on the part of Attorney’s working to speed up the foreclosure process for the Banks. Well we are starting to see the effect of that coming out into the market place. Title issues will derail your deal faster than you can blink an eye and often times they wont surface until you are well into the transaction and are vested both financially and emotionally. Buyers today who are considering purchasing a foreclosed home should consider finding a local title companythat they are comfortable with. Although you may end up being required to use the Bank’s choice of title company when it’s time to get a deal completed, a local title company can help you with the due diligence process. Local Title Companies can perform a Title Searchfor about $75.00, the may be money well spent considering that finding out about a Title Issue after the Appraisal and Inspections are will cost you between $600-$700 out of your pocket that you may not recover. Recently we had a transaction where we discovered to late into it that there was an issue with the Foreclosure Process and it required the seller( A Bank) to go back and amend the Foreclosure Summary Judgment. This created a cloud on Title and thus the seller could not deliver clear title. The propertyhas subsequently been temporarily taken off the market and the contract has been put on hold while the buyers are forced to wait for the court proceedings to take place and correct the Foreclosure Summary Judgment so that a revised Certificate of Title can be recorded. With out this, the seller or Bank does not have the legal right to sell the property. What’s the buyer’s recourse? They can move on to a different property. Although they will get their escrow deposit back, the money spent on inspections, appraisals etc is lost forever. Luckily the buyer is in the position to wait it out but many buyers wont be in that position and the delays can be costly especially when you are planning a move from a rental to your new home since you may have to extend your lease a potentially pay a higher rent for the extended time.
For more information on how to better protect yourself in your purchase of Real Estate in Spring Hill Fland the surrounding areas feel free to contact me and I will do my best to make sure you have all your bases covered. You can reach me anytime on the Cell at 727-946-0904. Buying a home is an exciting process, a little careful planning will go a long way to make the experience stays positive and is something you will remember as one of the best times in your life. You can count on the staff at Allied Home Mortgage in Spring Hill to make sure your Real Estate deal goes as smooth as possible. We are here to serve and protect you, our customer for life!

Branch Manager
4117 Mariner Blvd
Spring Hill FL, 34609
Office 352-688-7949 Cell 727-946-0904

postheadericon Why Some Real Estate Deals Dont Close On Time

Ok so I understand that we all have time lines in this business, and of course I know that purchase contracts are time sensitive. That being said, the ugly truth is that there are going to be times that extending closing is just not avoidable. I was going to write this as a RANT, probably out of frustration or anger at being treated like an animal for the past few hours by someone who clearly doesn’t understand the process, nor the state of the current lending environment. But as I am writing this, I decided not to do that, instead I think its better to go through and break down the entire process for everyone in hopes that the little crash course benefits those who want to learn the inner workings of what happens on a deal and what a typical lending process might entail. Thinking about this clearer, it’s occuring to me that stooping down to the level of ranting is no better than someone doing the same to me. It also doesn’t help our industry any, other than proving some brief comic relief, and that’s assuming anyone actually finds me funny which may be a big stretch in and of itself! So here is the skinny of what typically goes on, and what we as a lender might go through in order to get your deal to a closing

Buyer calls for pre-approval, all looks well, pre-approval is issued and the loan is disclosed. The buyer starts shopping with their favorite agent, but doesn’t find something immediately.
A month and a half has gone by now, and we finally recieve a contract. Buyer was approved for $100,000.00, but the contract is at $108,000.00. Debt ratio is tight, but it looks like after juggling some numbers we can make it work, so with that we proceed.

The file is checked for regulatory compliance including, Red Flag Rule, TILA, HOEPA, HVCC, MARS, BARSE FARSE, AND SCHMARS. Ok so those last four were made up, but you get the idea. We have a butt load of regs to follow.
We start processing the loan, and everyone is on their way to closing. A week later, we get a verification of employment back, none of the dates match up to the application. We go back, correct the application to match the dates but now there is a gap of employment of 90 days. We ask for clarification, and get a letter of explanation. Additionally, turns out most of the buyers income is not a salary but a commission. There is a guideline requirement of 24 months of earning commission for it to be used, but with the gap buyer is now short of 24 months of being paid this way. We review the deal again, and happy day we are OK to proceed because we find out they had prior history, or an exception was made, or it got dealt with some other way that satisfied the underwriter.

Now the credit report expires, and a new is required. We update credit and find out there is a new account, plus additionaly the SOB’s at the cable company hit the buyer with a collection for something that happened 3 years ago, but it’s only being reported now. With a lower credit score we re-look over the deal and it no longer approves the same way because the debt ratio is still tight. We play Juggle some more numbers, and by cutting here and trimming there the deal gets re-structured and back to an approved status.
At this stage almost 2 weeks has gone by, and the appraisal review comes back. The findings determine a declining market, with most prevalent sales coming from Foreclosed homes. They cant be ignored because there are too many and they are making the market right now. We order a rebuttal, and it comes back several days letter and is forwarded to the appraisal review company. They finally concede, and value is supported. (Hope we are always this lucky)

We carry on, and eventually the underwriter has cleared the file for closing! Yippeeee!
The file gets moved to a final status where the final quality control review is performed so that closing can be set up and closing documents ordered. FNMA requires a LQI, this is just a fancy acronym for saying pull another credit report as a “soft pull”. It doesn’t give back scores, but shows any new activity. Oh no, there is a new debt! We are back to having a debt ratio problem, and the deal is quickly falling apart again. Its back to the underwriter, where it gets reworked again between us and the underwriter. After 2 days of freaking out, light bulb goes off and all parties have figured out a way to lower the debt ratio in order to get the deal to fly again. Once again, the deal is trimmed here, and cut there and pretty soon we have much less profitable loan on our hands, but we made a commitment to all parties including the buyer so we concede in the interest of closing a deal and keeping everyone happy. We end at about 50% of where we started out in terms of revenue, but the deal is closing! Yipppeeee!

The closing department has a gizzilion deals to close, and best they cal do is get docs out within 48 hours. The property is an REO and the title company requires 48 hours for closing as does the seller. We get docs out, but the title company can’t open them because they never used the system and didnt see that they had register for access. Which by the way is clearly marked on every instruction page they recieve. By now most of the day has gone by, and we get a frantic call that they cant open the file. We send clear instructions and an new set of docs, and now at 6:48 PM we get a closing statement. We agree to stay late to approve it, but just as we review it the title company goes home. It’s now 7:30pm and we are still at the office, but cant get revised changes from Title anymore because they are gone. Apparently we are the only ones dumb enough to stick around that late.

Closing was supposed to happen at 10AM, but its now 12. We finally get the revisions we asked for but now closing will be at 4PM.

Closing Time- Yippeeee!…not so fast. Instructions required certain documents be sent to the closing department for review, its a contract closing so there is now way to email the documents to the funder from a remote location. Those don’t get to the funder until the next day. The next day, we issue funding authorization and the deal disburses. By now, everyone wants to pull their hair out of thier head, but is glad it’s over. Buyer got the home, seller sold a home, and all agents have been paid. Repeat, Close, Repeat, Close, and so the cylce continues.

Having the right Team Of Professionals can be the difference between closing and not closing. The Team here at Allied has the expertise to guide you or your buyers through the ever expanding maze that has become the lending market today. I highly recommend you make sure the right Professionals are working for you and that they know how to deal with the day to day challenges that pop up in the most effective way possible.

BTW, There’s a million other things I left out, but those will be for another post at a later time.


Steve Fingerman
Branch Manager
Allied Home Mortgage
4117 Mariner Blvd.
Spring Hill Fl, 34609
352-688-7949 Office
727-946-0904 Cell
Mortgage Calulator
Use Our Quick Calc To Calulate Your Esitmated Mortgage Payments
Return On Investment
Great Calculator For Investors Who Want To Purchase Rental Properties Plug In Your Details and Instantly See ROI __________________________
Short Sale Calc