Approved Advisor

It has been over 1 year now since the market for Jumbo Mortgages has dried up making it almost impossible for qualified applicants to get a reasonable deal for any type of loan about the traditional Conforming Loan Limits of $417,000.

One step by the Federal Reserve was the ability for Fannie, Freddie and FHA to purchase loans over the conforming limits with certain restrictions. Another option available has been through relationships with national and local banks and investors. Approved Funding is pleased to offer both options to our clients and referral sources with exceptional rates and terms for qualified applicants.

IN ADDITION TO WHICH>>>>

For a limited time only

Approved Funding is offering our clients

ABSOLUTELY NO BANK CLOSING COSTS

FOR ALL JUMBO MORTGAGES.

Qualifying Criteria

• Loans over $417,000 – $2,000,000
  
• North Jersey and Rockland County properties only
  
• Primary Residence only
  
• Full Documentation (Limited income by exception basis)
  
• Appraisal fee to be paid by borrower and refunded at closing
  
• Must mention special code “JUMBO09″ to get no cost option
  

 

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FHA Announces New Mortgage Insurance Premiums – August 28, 2008

In response to the passing of HR 3221, this update announces FHA’s new Mortgage Insurance Premiums for the period of October 1st, 2008 through September 30th, 2009. FHA’s Risk Based Premiums that went into effect on July 14th, 2008 will be on hold till October 1st, 2009.

Here are the 6 things you need to know about these changes…

1. Upfront Mortgage Insurance Premiums: 

• Purchase Money Mortgages and Full-Credit Qualifying Refinances = 1.75 %
  
• Streamline Refinances (all types) = 1.50 %
  
• FHASecure (Delinquent Mortgagors) = 3.00 %
  

2. Monthly Mortgage Insurance Premiums:

• For 30 year loans with LTV > 95 %, monthly will be .55%
  
• For 30 year loans with LTV < 95%, monthly will be .50%
  
• For 15 year loans with LTV > 90%, monthly will be .25%
  
• For 15 year loans with LTV < 90%, monthly will not be required
  
• For FHA Secure loans with LTV > 95%, monthly will be .55%
  
• For FHA Secure loans with LTV < 95%, monthly will be .50%
  

3. Mortgages with FHA case number assignments made on July 14, 2008, through and including September 30, 2008, shall maintain the risk-based premium structure for the life of the mortgage.

4. FHA will issue another notice that will formally advise when the moratorium is concluded and the premium pricing structure that should be followed once the moratorium ends.

5. Credit Scores

• Borrowers with credit scores below 500 will require an LTV of 90% or less
  
• Borrowers with 3 scores, the middle score is used
  
• Borrowers with 2 scores, the lowest score is used
  

6. These premium changes apply to the following FHA loan programs: 203b (standard 1-4 unit property), 203k (rehab loan), and 234c (condominiums) and do not apply to FHA reverse mortgages

 

We are still awaiting more changes in response to HR 3221 so watch for future updates.

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Starting Oct. 1, the Federal Housing Administration says it will charge homebuyers a 1.75% upfront mortgage insurance premium on single-family loans and a 3% upfront premium on FHA Secure loans for delinquent borrowers. Borrowers with loan-to-value ratios above 95% will pay a 55-basis-point annual premium. Borrowers with LTVs of 95% or less will pay a 50-bp annual premium.

A recently passed housing bill requires the FHA to abandon risk-based pricing for 12 months. So the agency has notified lenders that it is temporarily returning to standard pricing. Before July 14, the FHA charged a 1.5% upfront premium and a 50-bp annual premium on all single-family loans. The agency is raising the premiums to reflect higher loss rates and higher risks of refinancing delinquent borrowers. The upfront premium for existing FHA borrowers to refinance will remain at 1.5%.

Also see related story in Wall Street Journal

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Do your homework before you move so you don’t get bilked

With more than 40 million moves occurring every year, according to the U.S. Department of Transportation, it’s a wonder most of them go smoothly.

Fortunately, the majority of moves are made without incident but the number of complaints against moving companies has increased steadily over the past decade, so it’s in your best interest to find out some of the ways you can be scammed by a disreputable company.

The best protection against moving scams is a well-informed consumer who does his homework every step of the way. Moving is arduous, and having someone else do it for you doesn’t mean you can leave all the details in their hands. Here are things to watch out for:

Phoning it in
A mover who doesn’t insist on an on-site inspection of your household goods is giving you a sight-unseen estimate — and those are usually too good to be true. Homeowners typically have considerably more belongings than they think they do, and good estimators aren’t looking at specific items as much as guesstimating their bulk and weight. (A queen-size bed with no headboard or footboard weighs far less than one with an ornate, heavy wood frame.) Moving prices are based not only on mileage, but on the weight of your belongings and the amount of room your goods take up in the truck.

The cursory glance
An “estimator” who does a quick walk-through of your home without opening cabinets and taking note of exactly what you plan to move is going to be way off the mark. A good estimator will ask you questions (“Are you planning to move all the food in your pantry, or will you eat it before you go?” “Are you planning a yard sale to get rid of anything; if so, what?”).

It’s incumbent upon you to give as much information as possible (“We’ll be buying a king-size bed here to take with us, so add on that cost,” or “I’ll be donating these 20 shelves of books to the library, so don’t include those.”) Thousands of people each year have their belongings held hostage by scam artists who low-ball your quote, then refuse to deliver your belongings until you’ve paid them hundreds or thousands of dollars more — in cash.

The requested deposit
Reputable movers will NOT demand cash or any large deposit before moving you. You generally pay upon delivery. If you pay up front, you have zero control over when you’ll see your belongings again. When you do pay, use a credit card that will help you fight any fraudulent activity.

The name change
Some companies get around the Better Business Bureau and other such scam busters by constantly doing business under new names. Be sure the company has a local address and information about licensing and insurance. They should answer the phone with the full name of the business, not just “moving services” or something else generic.

To be safer, ask for three references — not just any references, but three who are from your area and who were moved within the past three months. Actually call those consumers and ask pointed questions about their experience. A good one: What did you like least about your moving experience?

Be sure to get all the names the company “does business as,” as well as their state and federal license numbers. Do an online search to see if you can find any complaints about the company. Call the government’s consumer complaints hotline at 1 (888) 368-7238 to inquire about the company’s history.

If your friends and family don’t have recommendations, get a list of reliable movers from local or national movers association like the American Moving And Storage Association and State Associations of Movers. Also, it’s a good bet your Realtor knows the best moving companies in town.

By federal law, movers are required to give you a booklet called “Your Rights and Responsibilities When You Move” while in the planning stages of your move (not after you’re all packed up). If you weren’t offered one, choose another mover.

Packing costs
The Catch-22 of moving is that if you pack your own belongings, the mover generally isn’t responsible for any damage to them. If you let your mover pack them, you’re forking over inflated prices for boxes and other packing material, not to mention time and labor. Ask about the packers’ experience, if you go the latter route. Most are careful, but others will just toss whatever they can into a box and seal it up – with little regard for whether something will break or bend.

Other extra fees

Live in a two-story house or moving to one? You’ll likely be charged extra. Moving to or from a 10th floor apartment? Ditto. Have a narrow street that won’t fit a moving van? Expect a surcharge for the transfer of your belongings to a smaller truck for delivery.

Insurance and Valuation Protection
All moving companies are required to assume liability for the value of the goods that they transport. However, there are two different levels of liability that apply and you should be aware of the charges that apply and the amount of protection provided by each level. The two different levels of liability that movers are required to provide are explained below and in the Your Rights and Responsibilities When You Move brochure that your mover will provide to you. Be sure to read this information carefully and follow the instructions provided to declare a value on your shipment.

FULL (REPLACEMENT) VALUE PROTECTION
This is the most comprehensive plan available for the protection of your goods. Unless you select the Alternative Level of Liability described below,your shipment will be transported under your mover’s FULL (REPLACEMENT) VALUE level of liability. If any article is lost, destroyed or damaged while in your mover’s custody, your mover will, at its option, either 1) repair the article to the extent necessary to restore it to the same condition as when it was received by your mover, or pay you for the cost of such repairs; or 2) replace the article with an article of like kind and quality, or pay you for the cost of such a replacement. An additional charge applies for this service; to avoid this additional charge, you must select the alternative level of liability described below.

The exact cost for full value protection may vary by mover and may be further subject to various deductible levels of liability that may reduce your cost. Ask your mover for the details of their specific plan.

Under this option, movers are permitted to limit their liability for loss or damage to articles of extraordinary value, unless you specifically list these articles on the shipping documents. An article of extraordinary value is any item whose value exceeds $100 per pound (for example, jewelry, silverware, china, furs, antiques, oriental rugs and computer software). Ask your mover for a complete explanation of this limitation before your move. It is your responsibility to study this provision carefully and to make the necessary declaration.

ALTERNATIVE LEVEL OF LIABILITY – Released Value of 60 Cents Per Pound Per Article. This is the most economical protection available; however, this no-cost option provides only minimal protection. Under this option, the mover assumes liability for no more than 60 cents per pound, per article. Loss or damage claims are settled based on the pound weight of the article multiplied by 60 cents. For example, if a 10-pound stereo component, valued at $1000 were lost or destroyed, the mover would be liable for no more than $6.00 (10 pounds x 60¢). Obviously, you should think carefully before agreeing to such an arrangement. There is no extra charge for this minimal protection, but you must sign a specific statement on the bill of lading agreeing to it. If you do not select this alternative level of liability, your shipment will be transported at the full (replacement) value level of liability and you will be assessed the applicable valuation charge.

These two levels of liability are not insurance agreements that are governed by state insurance laws, but instead are contractual tariff levels of liability authorized under Released Rates Orders of the Surface Transportation Board of the US Department of Transportation. Some movers may also offer to sell, or procure for you, separate added liability insurance if you release your shipment for transportation at a value of 60 cents per pound per article (the Alternative Level of Liability). This is not valuation coverage governed by Federal law, but optional insurance that is regulated under state law. If you purchase this separate coverage, in the event of loss or damage which is the responsibility of the mover, the mover is liable only for an amount not exceeding 60 cents per pound per article, and the balance of the loss is recoverable from the insurance company up to the amount of insurance purchased. The mover’s representative can advise you of the availability of such liability insurance and the cost. If you purchase this separate liability insurance from or through your mover, be sure to get a copy of the policy or other document at the time of purchase.

The blank contract
This should be common sense rather than a scam — but don’t ever, ever sign a blank contract, no matter how much you like the mover. Get absolutely everything in writing. Your estimate and all extra fees should be right there, as well as your pickup and delivery dates.

Read your contract from top to bottom and make sure that all your belongings are listed. Don’t be satisfied with a box that’s just inventoried as “Office supplies” unless you saw it packed up with just notepads and paperclips. If that laptop computer isn’t labeled on the inventory form you sign before the driver leaves, don’t expect it to be in the box when he arrives. You can’t file a claim for something that doesn’t appear on the inventory list.

The “guaranteed” quote
Federal law requires one of two kinds of moving contracts. A non-binding estimate means the company cannot require payment of more than 10 percent above the original estimate, due within 30 days of delivery. A binding estimate is supposed to be a guaranteed price for the move and all extras and services. If additional services are requested (such as unpacking), the extra fee is due within 30 days of delivery.

Think you’re getting an ironclad, binding, “not to exceed” contract? Read the fine print. It often says it won’t exceed that price unless the weight of your belongings is more than the estimate. You want to be guaranteed in writing that this is THE final price – or feel darn comfortable with the weight estimate you were given.

Three different moving companies may give estimates that are as much as several thousand pounds apart, so in some instances, you may feel safer with the higher estimate. (Movers weigh their trucks empty, then weight again with your belongings on it to figure out how heavy your possessions are.)

The window of opportunity
Show of hands: How many have moved to another state and still had at least a couple boxes still unpacked a year later? Pray that nothing inside is damaged, because you have only nine months — which goes by faster than you think — to report any problems to the moving company and file an insurance claim.

Try to get help from friends when the movers are unloading, and open each box and sift through it to check for obvious damage. Ideally, you should note the problem on the mover’s copy of the bill of lading before signing it. Your mover then has 30 days to acknowledge receipt of your claim. Within 120 days of receiving it, he must deny your claim or make an offer to pay. It’s a lot easier for him to deny it if you don’t have before-and-after proof, or if he didn’t see the damage before he left your new house.

Have you already been bilked? Get in touch with Move Rescue, a consumer advocacy group that helps you when your belongings are being held hostage: 800-832-1773.

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Here’s what you need to ask when selecting a moving company

The challenge is to find the right company to trust with moving your valuables. Here are some good questions that will help you learn more about the companies you’re considering.

• How long has the company been in business?
  
• How long has the salesperson or estimator you’re speaking with been in the industry?
  
• Is your agent certified?
  
• Have any complaints been filed against the company? If so, what were they and what measures have they taken to rectify the situation? Check with the Better Business Bureau.
  
• Does their van line have a formal quality ratings program? If so, what are these scores and can you see them?
  
• Is there a third party service provider that will be involved in moving specialty items like a pool table, piano or grandfather clock? If so, who are they?
  

First impressions really do count. Judge your estimator on their professionalism, attention to detail and responsiveness to your inquiries. Also make sure they give a thorough explanation of their pricing and process. For example, if the estimate is binding or non-binding. These things can tell you a lot about the company philosophy and how comfortable you’ll be in working with them. Source: www.move.com

Referrals:

1. Schulgasser Brothers Moving: Baruch Schulgasser (973) 458-9658
   
2. Duffy Movers: (201) 807-1716
   

Also see: The Top 10 Moving Scams
http://www.approvedadvisor.com/post/124

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NEW YORK, – A new study released by Bankrate, Inc. shows that the cost of getting a mortgage continues to rise despite a soft housing market.

The 2007 average closing cost of $2,736 has gone up to an average of $3,118 in 2008, a 14% increase. In the study’s geographical breakdown, New York City leads the nation at an average fee of $4,016, with Texas, Buffalo, Miami and Oklahoma rounding out the top five. North Carolina is the least expensive area with an average fee of $2650, replacing Indiana (now #45 with an average fee of $2878) at the bottom of the list.

“Often times, consumers forget about the added fees involved in buying a home,” said Holden Lewis, senior reporter with Bankrate.com. “Closing costs can be extremely expensive if not researched thoroughly. Keeping closing costs at a minimum can make a big difference to homebuyers during difficult economic times.”

Bankrate’s Closing Cost study was conducted in June and July of 2008 by obtaining four to nine good faith estimates from the Web sites of online lenders. Researchers picked a ZIP code in some of the largest cities in each state and requested information on the closing costs for at $200,000 loan. They requested fees on a 30-year, fixed-rate mortgage for a borrower with a 20 percent down payment and good credit to buy a single-family house. Bankrate’s survey includes lenders’ origination fees and title and settlement fees, and not taxes or prepaid items.

2008 closing costs averages

                 

2008 2007 closing

rank rank State costs

 

1 1 New York – NYC $4,016

2 2 Texas $3,975

3 NA New York – Buff $3,845

4 3 Florida – Miami $3,683

5 8 Oklahoma $3,558

6 9 New Mexico $3,465

7 7 New Jersey $3,432

8 4 Pennsylvania $3,411

9 16 Alaska $3,409

10 24 Colorado $3,358

11 NA California (SF) $3,321

12 5 Ohio $3,317

13 17 California – LA $3,250

14 35 Kentucky $3,213

15 27 West Virginia $3,201

16 11 Connecticut $3,200

17 25 Michigan $3,191

18 NA California (SAC) $3,179

19 41 Oregon $3,161

20 6 Hawaii $3,134

21* 39 Alabama $3,130

21* 12 Massachusetts $3,130

23 19 Maryland $3,118

24 15 Tennessee $3,117

25 37 South Carolina $3,103

26 10 Delaware $3,098

27 46 Arizona $3,096

28 22 District of Col $3,086

29 33 Idaho $3,064

 

*Indicates tie

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