mortgage: Short Sale vs. Foreclosure What Every Homeowner Needs to Know - 03/23/12 08:54 AM
Take a minute and imagine you are one of the millions of Americans who has lost their job and is way behind on their mortgage payments with no chance of getting back above water. You have drained your savings account and the next step is to dip in that retirement fund you have sacrificed so much for. You never thought you would ever be in this position but you are. Do you let your home go into foreclosure? OR do you head down the road of a short-sale? What is the Real Truth behind your options?
A short-sale is often explained … (5 comments)

mortgage: Use the Calendar to Save Your Clients Thousands - 02/24/12 06:43 PM
Owning a home is like having a forced savings account for your money. You are constantly making your monthly mortgage payments and depending on the current market conditions you are building equity,  and financial security. What you may not have realized, is that there is an easy way to speed up this process of increasing your equity and subsequent net worth, while still making the same monthly mortgage payment that you have been making all along. Yes that's right, you can pay down your mortgage more efficiently by utilizing a bi-weekly payment schedule for your monthly mortgage bill. A bi-weekly payment involves … (5 comments)

mortgage: Choosing the Right Mortgage Company - 01/13/12 03:04 PM
The post Great Recession mortgage industry is a very different than it was seven or eight years ago. Increased lending restrictions and licensing regulations have for the most part, eliminated the chop shop mortgage broker from the equation. And although the mortgage industry is a safer place for the consumer, it doesn't mean that finding the right mortgage professional for your needs is any easier. You will never feel so important as you do when you go to apply for a mortgage, and trying to figure out who is telling the truth and who the best liar is can be an … (1 comments)

mortgage: 4 Steps to Prepare for Your Purchase Pre-Approval - 12/27/11 08:56 PM
Prepare for Success
Making the jump from renter to home owner can seem a bit intimidating, and like any big step in life, being prepared is the key to a successful transition. Whether you have been living at home with parents, shacking up at a friends house or making a check out to a landlord every month, understanding the steps to a successful pre-approval require attention to detail, and self education. That’s why I have designed this 4 step Mortgage Buddy checklist for the 1st time home buyer to help turn uncertainty into confidence.The following list will help to pre-screen your … (3 comments)

mortgage: Can't Save Money? Buy a Home - 12/18/11 02:10 PM
The last few years have if nothing else has given us a greater appreciation for the value of saving money. A challenging real estate market, weak employment picture, and a lack of good ideas from our elected officials has put some financial pressure on all of us. The stock market volatility and lack of regualtion over the past few years has left little confidence in our retirement fund. Saving money for a child's education, retirement or just that bucket list adventure, can place anxiety on Americans of any age or income demographic. But, what if I told you buying a home … (45 comments)

mortgage: The Zero Down-Payment Loan That Makes Sense - 12/12/11 04:23 PM

 
For many prospective home owners, the challenges of the recent economic down turn has made it difficult to put aside money for a down-payment. It seems as though more and more of our paycheck is going towards the rising costs of food and rent and less into our savings account. With all the negative commentary on the news we are that banks aren't lending, underwriting is impossible, and the lenders are requiring larger down payments. The dream of owning a home for many can seem far fetched. What if I told you this isn't the full story and that … (2 comments)

mortgage: Realtors & Loan Officers Need to be Appreciated - 06/23/11 04:49 PM
Realtors & Loan Officers Need to be Appreciated
I first off want to sincerley thank Michelle Wesson of Keller Williamsfor a successful purchase closing this week. This was just one of those transactions that had many obstacles to over come, but through team work and perseverance we were able to help this family find a very nice home for their growing family. Michelle went above and beyond her traditional role numerous times to make certain her client was happy.
As most of us know sometimes a loan can be very challenging and require a lot more paperwork from the client than … (9 comments)

mortgage: Good Time of the Year Time To Review the Business Plan-Share Your Ideas - 06/03/11 05:15 PM
It's crazy to think that we are almost half way through the year already. Up here in New England the first couple of months were a blur from the crazy amount of snow we had, and before I knew it the Spring Market was in full bloom. I spent some down time over the Memorial Day weekend to pull out my business plan for the year and take a look at where I stand and where I want to be in December. I'm not a business coach by any means but I know what works for me and that's writing down … (5 comments)

mortgage: Rate Outlook for the Week Beginning May 2nd - 05/02/11 10:52 AM
 

Today is a great day for Americans. We have proven our resiliency to track down evil and dispose of it. The world markets have responded with a positive open for the day but this week's economic focus for the US is going to be the unemployment report on Friday.
We have been seeing a nice trend over the past few months with the unemployment rates starting to creep back down slowly. The unfortunate part of this report is that hours worked did not edge up last month and we have seen an increase in continuing claims over the past few weeks. … (1 comments)

mortgage: FHA 203k Purchase Refresher-What's Eligible? What Isn't? - 04/06/11 02:45 PM
I just wanted to do a quick blast for everyone so they have a refresher of the fantastic FHA 203k Streamline loan.
This is a great opportunity to but a owner occupied fixer upper and use the bank's money. When evaluating the property it's crucial to keep in mind what is an eligible improvement and what isn't.
Examples of Eligible Repairs:
Repair/Replacement of roofs, gutters, and downspouts Repair/Replacement/Upgrade of existing heating, ventilation, and air conditioning systems Repair/Replacement of plumbing and electrical systems Repair/Replacement of flooring, however the repair of sub-floors is not because it is considered structural Minor remodeling such as … (4 comments)

mortgage: Understanding What FHA Compensating Factors Are Will Help You Close More Transactions - 04/01/11 01:46 PM
Most us of are familiar with what DTI stands for, for those who don't it's Debt to Income Ratio. In a simple explanation it's your monthly debt as it compares to your monthly income.
A Standard FHA DTI recommendation is 31/43%. to have a higher debt to income ration does not disqualify you from a loan it just requires we demonstrate "Compensation Factors". There is no specific number of compensating factors that must be used, but the factors must support the approval of the loan. Any "compensating factor" used to justify mortgage approval must be supported by documentation.
The Following is … (1 comments)

mortgage: HARP Program Gets Extended for Another Year - 03/14/11 05:45 PM

The Home Affordability Refinance Program known as (HARP) for short is going to be extended for another year. The program was set to expire at the end of June 2011 but will now be extended until June 30 2012. The HARP program was set up to assist home owner's refinance who have high Loan To Values (LTV). It allows people to take advantage of today's low interest rate environment without being subject to the usual conforming loan to value underwriting guideline limits.
This program is open to people who have loans that were purchased by Fannie Mae or Freddie … (1 comments)

mortgage: The ARM Program Refresher - 03/10/11 01:43 PM
The ARM- Adjustable Rate Mortgage This was the forbidden fruit of the 2003 to 2007 that home owner's couldn't get enough of. Let's buy too much house or roll in our debt and just assume the values will continue to go up. Well we know how that turned out. Although ARMs have a Scarlet Letter about them they do have advantages for the right client and with the right fiscal discipline. The low initial cost of adjustable-rate mortgages (ARMs) can be very tempting to home buyers, yet they carry a great deal of uncertainty. Fixed-rate mortgages (FRM) offer rate and payment … (4 comments)

mortgage: A Fannie Mae HomePath Refresher - 03/10/11 10:21 AM


 
 
The Fannie HomePath loan is a great opportunity to get into a new home at a low price, less underwriting and no appraisal. I have outlined some program highlights and underwriting guidlines.
- No Mortgage Insurance - No Appraisal - Available to owners and investors - Less than perfect credit - 3% down sometimes less  This program is aimed at lightening up the inventory of homes that Fannie Mae owns. This particular program can only be used for Fannie Mae owned homes.
Below is a guidline over view to help you understand what can be done … (2 comments)

mortgage: A Refresher on the USDA Mortgage Program - 03/09/11 01:30 PM

 
Advantages of USDA
-Up to 102% LTV based on the lower of the sales price or the appraised value
-First time home buyers are eligible
-No monthly mortgage insurance
-Up to 10 acres (100 acres at 80%LTV)
-Unrestricted Gifts

Eligible Applicants
-Have the ability to personally occupy the dwelling
-Must not have financing on any other property, even as a co-signer
-Be a citizen of the United States or be admitted for permanent residency
-Non-occupant co-borrowers are not permitted
-Borrowers must sell their existing home
 
Eligibility Requirements
Geographic: Rural areas are defined as open … (1 comments)

mortgage: Will The Price Of Oil De-Rail The Spring Housing Market - 03/06/11 07:29 PM
Will The Price of Oil De-Rail the Spring Housing Market? As tensions, and in some instances revolution have sprung up all over the Middle East, we have seen a dramatic increase in the price of oil. The higher costs are affecting the airliners, the cost to heat our homes, and right in our own daily pockets in the form of higher gas prices. We have not seen oil this high since 2008, and we all remember  the economic down turn that insued shortly after oil peaked out at $147 a barrel. In fact, we are still dealing with it, so is … (6 comments)

mortgage: One Last Push for the FHA Streamline Refinance - 02/27/11 03:18 PM
One Last Push for the FHA Streamline Refinance   As a result of FHA running low on their capital reserve requirements they are going to need to raise their fees so that can replenish their reserve pool, and the home owner is the one footing the bill. The FHA Streamline has been a great product over the last couple of years. On average I have been able to help between 12 and 20 FHA mortgage holders a month refinance their current FHA loans into lower interest rate settings, and it is so frustrating that HUD has make the home owner pay higher fees … (5 comments)

mortgage: Fannie Mae Launches Servicer Accountability Program - 02/24/11 06:27 PM

Today Fannie Mae announced the start of theĀ  Servicer Total Achievement and Rewards Program, also known as the STAR program. This new program is designed to rate and evaluate mortgage servicers' performance in supporting the housing recovery by helping homeowners avoid foreclosure. This will be implemented as a type of report card for mortgage servicers. The hope is that it will guide the servicers to focus on customer service and make sure they are doing everything possible help home owners. If these servicers do well they will receive incentives.
Fannie Mae's scorecard gauges a servicer's effectiveness based on criteria in four … (1 comments)

mortgage: Answering Questions from a Real Estate Seminar One Day at a Time - 02/24/11 12:32 PM
Answering Questions from a Real Estate Seminar One Day at a Time
As I continue to give a blogging recap of the seminar I was a part of I want to touch base on another question that the attendees to the meeting had.
"I hear there are going to be some changes to FHA what does that mean to me as a first time home buyer?"
This question was asked to me last week and I did my best to thoroughly answer it. As many of you may have heard, FHA like many other government agencies is running low on cash … (2 comments)

mortgage: Answering the Questions from a Real Estate Seminar One Day at a Time - 02/21/11 03:20 PM
Answering the questions from a real estate seminare ond day at a time
As I blogged about last week I was on a panel for a local real estate company as they hosted an industry news seminar. It was basically an open forum discussion focusing on the changes and challenges that correspond with today's market. I had a few request to give my point of view in regards to the questions that were asked so everyday this week I will discuss one of the questions.
 
How will the changes with Fannie and Freddie effect me buying a home?
It's tough … (7 comments)

 
John Saari, "The Mortgage Buddy"

John Saari

"The Mortgage Buddy"

Worcester, MA

More about me…

Mobile: (508) 740-7442

Office: (508) 740-7442

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I decided to start writing this blog to be an education resource to my referral partners and my clients. We live in a new world of mortgage lending in which we need to be up to date on the changing underwriting guidlines and mortgage products offered. It's through these updates that we will all be able to provide our clients with the customer service they derserve and expect. It's my belief that this industry insight is what will take our business to the next level. Education = Confidence


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