Ask Val

April 4, 2011

Three Major Credit Reporting Bureaus

When applying for a mortgage whether it be for purchase or refinance a tri-merge credit report is pulled for an evaluation of the clients current and past credit history.

The three bureaus are Equifax, Experian and TransUnion.

Depending on the creditor they many report to one or all bureaus.  Credit scores can vary between agencies so to qualify for financing I will work off your middle credit score to determine your rate.

It is a great idea to get a credit analysis at least once a year.  In doing so you can keep on top of your credit report and quickly take care of any discrepancies.

The bureau information is as follows:

Experian Consumer Relations, 888-397-3742,  P O Box 2002, Allen, TX  75013  www.experian.com

Equifax Consumer Relations, 800-685-1111, P O Box 740241, Atlanta, GA  30374-0193 www.equifax.com

TransUnion Consumer Relations, 800-888-4213, P O Box 1000, Chester, PA  19022 www.transunion.com

The above addresses would be where disputes are mailed to the individual bureau.  I suggest dispute be sent certified mail return receipt requested.  Credit bureau has 30 days to investigate and then derogatory is either confirmed or removed.

If you need a free credit analysis in the Birmingham, AL area, please contact Valerie Springer .  I would be honored to help you with your financing needs.

Yours to Count On,

Valerie Springer

September 10, 2010

Inducements to Purchase

In the real estate world today there are many inducements to purchase a home.  Recently I read where a builder in Downtown Birmingham, AL  will give you free tuition if you purchase a loft condominium. 

Sounds like a great reason to purchase one of these properties if you are young and working toward your education.  BUT…

Guidelines on personal property inducements state the following:

IF  the personal property is a car, boat, riding lawn mower, furniture, television etc…THEN the value of the item(s) must be deducted from the sales price of the property value before applying the loan to value factor.

HOWEVER a range, refrigerator, dishwasher, washer, dryer, carpeting, window treatment or other items determined appropriate by the Homeownership Center (HOC) may be considered customary and affect the value of the property before applying the loan to value factor.

The exception is replacement of existing equipment or other realty items by the seller before closing, such as “flooring”, air conditioners, appliances does not require a value adjustment provided a cash allowance is NOT given to the borrower.

Depending on local custom or law, certain items may be considered part of the real estate transaction with no adjustment to the sales price or appraised value. 

A seller can offer anything to close the deal but whether the lender will allow is may all together be a different story! 

Yours to Count On,

Valerie Springer

August 17, 2010

Appraisals and Housing Valuation Code of Conduct (HVCC)

Housing Valuation Code of Conduct

 

Sometimes I wonder what our government was thinking when a group of lawmakers, (NY) decided it was in the best interest of consumers to have a third party requesting the most important piece of the puzzle in a refinance or purchase.   

An appraisal is an opinion of a property’s value.  Just like in any profession there are good and bad.  To utilize the best opinions it needs to be an appraiser who is familiar with the area and transactions taking place.   

In today’s market, we order an appraisal with a company who then gets in touch with the  appraiser.    

As a loan officer we do not have knowledge of the appraiser until we receive the finished product.  If there are any questions they are filtered back through the appraisal management company.   

For purchases, not so much negative, but for refinances it is a toss up as to the amount of work appraiser puts in to get the true value of the home.  I have been told sometimes can vary as much as $30k depending on comparables used.   

Thankfully, I have only had one appraisal that was disasterous and that appraiser has been removed from the the appraisal management company’s list.   While most appraisers take great pride in their work there are always those bad apples floating around in the barrel.   

I hope this trial will be one that is deemed unreasonable for all parties involved.  Ask the appraiser how they would rather work???   

If you have a comment or opinion, please share.   

Yours to Count On,   

Valerie Springer

August 9, 2010

FHA Mortgage, What is the attraction?

Many times I am asked why is a FHA mortgage better than conventional?  In fact, there are many  advantages to FHA financing.

FHA insures the mortgage which reduces the risk a lender has to assume in the event a borrower defaults on the mortgage payments.  Insurance  allows lenders a little more willingness to loan to those with not so perfect or less depth in their credit history.  This helps  individuals qualify for financing.

FHA’s underwriting standards are less strict than those of conventional loans.  This allows individuals who have had credit issues, bankruptcy, foreclosure or inconsistent payment records the opportunity to qualify for financing.

Also, FHA will allow a minimum down payment to be as low as 3.5%.  These funds can come from the borrower, co-borrower, or in the form of gift funds.  Gift funds may be given from a parent, grandparent, fiance’, sibling or god-parent.

In today’s market if you are purchasing a home below $271,000.00 and putting less than a 20% down-payment, it may be in your best interest to have a FHA loan.  Rates are low and FHA may be assumed if qualified and monthly mortgage insurance is generally much lower on an FHA mortgage.

If you have questions or would like to be pre-approved to purchase a new home or refinance your existing, please visit my website www.vshomeloans.com or call me at 205-995-7283 x 304.  I would love to help with one of the largest financial decisions you will ever make.

Yours to Count On,

Valerie Springer    NMLS 198479

July 30, 2010

American Red Cross Shelby County Alabama

Valerie Springer appointed to Shelby County Red Cross Board of Directors 2011.

If you are interested in donation to the Shelby County Alabama Red Cross please contact Valerie Springer .

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