Revere Hill, a lovely sub division in the Hills section of Basking Ridge

By: Adrienne Francis

An impeccable collection of single family homes in The Hills of Basking Ridge is Revere Hill. Built in 1996 Revere Hill homes offer 4 bedrooms, 2 1/2 to 3 1/2 baths. They feature family rooms, dens, master suites with sitting rooms and basements. Some are located on cul-de-sacs overlooking the golf course. Amenities include a pool, clubhouse exercise room, tennis, playground.

Priced from approx. $900,000 – $1,300,000. | Directions: Allen Rd. to Tartan Rd.

If you are looking to buy a home in The Hills of Basking Ridgecall me, Adrienne Francis, I know the different communities quite well and can help you determine the best place for your family to live based on the lifestyle that you’re looking for.

IF YOU ARE ABOUT TO APPLY FOR A MORTGAGE – SOME DO’S AND DONT’S

1. Don’t Apply For New Credit. Every time that you have your credit pulled by a potential creditor or lender, you can lose points from your credit score immediately.

2. Don’t Pay Off Collections or “Charge Offs”. If you want to pay off old accounts, do it through escrow, making sure that the debt is yours. Request a “letter of deletion” from the creditor.

3. Don’t Close Credit Card Accounts. If you close a credit card account, it may appear that your debt ratio has gone up. Closing a card will affect other factors in the score, including credit history.

4. Don’t Max Out or Over Charge Credit Card Accounts. Try to keep your credit card balances below 40 percent of their limit during the loan process. If you pay down balances, do it across the board.

5. Don’t Consolidate Your Debt. When you consolidate all of your debt onto one or two credit cards, it will appear that you are “maxed out” on that card and you will be penalized.

6. Don’t Do Anything That Will Cause A Red Flag To Be Raised By The Scoring System. This includes adding new accounts, co-signing on a loan or changing your name or address with the bureaus.

7. Do Join a Credit Watch Program. Then, you may check your own credit reports regularly (you won’t get dinged for a “hard” inquiry). Plus, if something unexpected does show up, you can address it promptly.

8. Do Stay Current On Existing Accounts. Like your mortgage and car payments, one 30-day late notice can cost you.

9. Do Continue To Use Your Credit As Normal. Red Flags are raised easily with the scoring system. If it appears that you are changing your pattern, it will raise a red flag and your score could go down.

10. Do Call Me. I may be able to connect you with someone that can help to stop any derogatory reporting to the bureaus.

FICO revamps the way it calculates credit scores

By: Adrienne Francis

FICO (Fair Isaac Corporation) announced today that at some point, later in the fall, it will be revamping the way it calculates credit scores.

This is wonderful news for consumers and surely will help to increase credit scores because a low credit score could ultimately cause a consumer to pay a higher interest rate on loans, credit card debt and even a mortgage.

FICO will ignore paid collection accounts under this new system and place less emphasis on medical bills when calculating scores. Consumers whose delinquent accounts are only unpaid medical bills could see their credit scores rise by as much as 25 points, according to FICO.

The decision was hailed by National Association of Realtors President Steve Brown, who said it will increase consumer access to home ownership.

“Realtors welcome today’s announcement from FICO, that it will no longer penalize borrowers for certain debt-collection activities when calculating credit scores,” Brown said. “This move will ultimately make a real difference in lesbian porn the lives of millions of Americans, who have been shut out of the housing market or forced to pay higher mortgage interest rates because of flawed credit scores. Since the housing crash, overly restrictive lending has been the greatest obstacle to homeownership. As always, the NAR will continue to embrace efforts to broaden credit access for all qualified homebuyers.”

Do You Know Someone Who Would Love This Home?

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What bank rejects the most mortgage applications?

This is a very interesting article on which banks reject the most loan applications. And what if you are rejected at one bank, is there still hope for you? Read on…

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The likelihood that a mortgage application will be approved varies widely by bank.

Home-buyer rejection rates ranged from 11% to 34% in 2012 at the 10 largest mortgage lenders, according to data released this month by the Federal Financial Institutions Examination Council. Those who applied for a mortgage at SunTrust STI +2.05%   faced the lowest rejection rate—3,831 out of 34,749 applications were denied—while those at Chase encountered the highest rejection rate, with 26,894 out of 80,036 (a third) not passing muster. Despite the fact that large lenders sell most of their mortgages to government agencies, many require applicants to clear hurdles that surpass federal guidelines, and they do so in degrees that vary by institution, resulting in confusion for applicants. Home buyers who get rejected for a mortgage at one large bank could get approved at its competitor—assuming they know not to give up the search. “It absolutely makes a difference where you go,” says Stu Feldstein, president at SMR Research, a mortgage-research firm.

Don’t bank on getting that mortgage approved
Number of 2012 home buyers rejected by the top 10 mortgage lenders
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Since the housing downturn, most banks have been selling the mortgages that they originate to government-backed agencies. These groups, including Fannie Mae FNMA -0.31%  and Freddie Mac FMCC -0.65%  , set the minimum guidelines—including credit score, down payment, and debt-to-income ratio requirements—which lenders must follow when determining whether to approve a mortgage applicant. Housing experts say if large lenders stuck to that rubric, they would all have similar rejection rates. They vary widely, however, in part because most lenders add an extra layer of requirements on top of the federal guidelines, says Feldstein.

Banks’ additional requirements stem from the housing downturn when government agencies returned mortgages that banks had sold to them after borrowers defaulted. This was done on the grounds that the loans were poorly underwritten or because of other violations. Referred to as mortgage buybacks, they fell to their lowest level in four years during the second quarter of this year, according to Inside Mortgage Finance, a trade publication. But experts say many banks are sticking to their additional requirements to avoid new losses. “[They’ve made] decisions about whether they want to skate right on the edge of those guidelines or be in a comfort zone,” says Stuart Gabriel, director of the Ziman Center for Real Estate at the University of California, Los Angeles.

Of course, mortgage-rejection rates have come down significantly since the recession, when lenders pulled back on mortgage originations in the face of rising foreclosures. In 2009, rejection rates among most of the lenders on this list ranged from 13% to 70%. Two lenders—SunTrust and PHH Mortgage—had lower denial rates than in 2012. That disparity was not surprising then since lenders sold most of their mortgages to private investors who collectively accepted a wide range of underwriting standards.

To be sure, housing experts say recent rejection rates could vary greatly among the banks because of the types of mortgage applicants they’re receiving. For instance, lenders who receive a greater share of borrowers with lower credit scores or income, or higher debt, are more likely to have high rejection rates. In some cases, the banks’ existing customers could be contributing to higher rejection rates. Chase and Bank of America, which had the highest rejection rates in 2012, have subprime borrowers that they acquired when they bought Washington Mutual and Countrywide, respectively. If those borrowers tried to buy another home, it’s likely that they turned to these banks since they already had a relationship with them and were denied because of their poor credit, says Feldstein. A spokesman for Bank of America says the bank’s denial rates have been consistent over several years, ranging from 20% to 25%, including prior to the Countrywide merger. Chase did not respond by press time.

In many cases, however, borrowers face rejection rates that are even higher than the numbers on this table show. Home buyers typically have to answer a laundry list of questions about their finances before they even make it to the actual mortgage application. Many would-be applicants are denied before they even sign an application, says Guy Cecala, publisher of Inside Mortgage Finance. Some lenders will deny a large chunk of home buyers in the preapproval process. For instance, excluding preapprovals, Wells Fargo WFC +2.12%  denied roughly 12% of applications; with preapprovals, the rejection rate jumps to about 21%.

Separately, a large number of applicants never get approved or denied. More than 71,000 applications or 8.6% of all applications among the top 10 lenders in 2012 were either withdrawn or closed because they were incomplete, according to the FFIEC data. These cases include borrowers who couldn’t produce income documentation or meet some other requirement that awaited them and walked away from the mortgage request.

For home buyers, the findings underscore the importance of casting a wide net when shopping for a mortgage. In addition to contacting individual lenders, consider speaking with mortgage brokers who work with a variety of lenders and can give would-be borrowers an idea upfront of whether they can get approved. And just because buyers are denied, that doesn’t mean they should stop the search.

Going forward, it remains to be seen whether the range of rejection rates will widen milf porn even more. As banks slowly increase their number of portfolio mortgages—which they keep on their books rather than sell to government agencies—the terms that borrowers have to meet could differ even more from one lender to another. (With portfolio mortgages, lenders set their own terms for the entire approval process.) Separately, now that mortgage rates are rising and refinancing activity is falling, lenders are becoming more eager to generate new mortgages, experts say, and some may approve more applicants than they are currently.

 

If I can help mobile porn you with any additional information regarding this article, or with any of your home buying or selling needs or if you know someone who would like some assistance, please feel free to visit my website to learn more about me www.AdrienneFrancis.com or text or call me at (201) 259-4449 .

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We used to call this “Assuming Someone’s Mortgage”

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Homeowners with a mortgage insured by the Federal Housing Administration or the Department of Veterans Affairs should consider using their loan terms as a marketing tool when it comes time to sell.

Mortgage loans from both government agencies include a little-known feature known as assumability. In other words, the buyer of a home financed with an existing F.H.A. or V.A. loan may be able to take over, or assume, the seller’s loan, under the same terms, rather than take out a new mortgage.

During periods when interest rates are rising, homes offered for sale with an assumable, lower-rate mortgage may have extra appeal for certain buyers.

“You could now have a seller saying, ‘I have a great house to sell you and a great mortgage to go with it, which is better than my neighbor, who only has a great house,’ ” said Marc Israel, an executive vice president of Kensington Vanguard National Land Services and a real estate lawyer. “It’s a very clever idea.”

The savings for buyers assuming a loan extend beyond a lower interest rate. Assuming a loan is cheaper than applying for a new one because there are fewer settlement fees. An appraisal is not required (though a buyer may want to obtain one anyway). And in New York, borrowers assuming a loan do not have to pay the hefty mortgage recording tax a second time, Mr. Israel said.

F.H.A. loans do demand that the borrower pay for mortgage insurance over the life of the loan. But when assuming a loan, borrowers do not have to pay the upfront mortgage insurance premium required on a new loan, according to John Walsh, the president of Total Mortgage Services in Milford, Conn.

And, he noted, because the original mortgage holder would have been paying the loan for a number of years, the buyer assuming the loan will start at a point deeper into the amortization schedule than on a new loan. That means more of the monthly payment will go toward principal.

“In a rising rate environment, assumability is a very attractive option,” said Katie Miller, the vice president of mortgage products for Navy Federal Credit Union. “It ends up making homes that much more affordable.”

She emphasized, however, that loan assumptions are often not a viable option for first-time buyers if the seller has accumulated substantial equity in the home.

Say, for example, that the seller’s loan balance is $150,000, and the sale price for the property is $200,000. The borrower assuming the loan must come up with the $50,000 difference, either in cash or through some type of subordinate financing.

That can be too big a hurdle for first-time buyers. The more attractive option at Navy Federal is the HomeBuyers Choice loan, which offers 100 percent financing. These loans currently account for about a quarter of the credit union’s purchase volume, and 65 percent of those borrowers are first-time buyers, Ms. Miller said.

Borrowers seeking to assume a loan must also prove their creditworthiness as they would for any F.H.A. or V.A. loan.

Under F.H.A. rules, once a new borrower is found to be creditworthy enough to assume a loan, the lender must release the seller from any future liability for payment of that loan.

Borrowers considering loan assumption should weigh the costs against other loan options, paying attention to the principal and interest payment, the amount of cash required upfront, and the private mortgage insurance premium. “At the end of the day,” Mr. Walsh said, “if the prospective buyer can come up with the down payment and qualify for the loan assumption, then it could be a huge benefit.”

If I can help you with any additional information regarding this article, or with any of your home buying or selling needs or if you know someone who would like some assistance, please feel free to visit my website to learn more about me www.AdrienneFrancis.com or text or call me at (201) 259-4449 .

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Home Selling Tips

Easy Ways to Increase the Value of your Home

Sprucing up your home before you sell it has never been more important because today’s buyers have never been more demanding. Luckily, there are a few ways that you can improve your home’s value and increase the likelihood of a quick sale and we all know the sooner that happens, the more money you will receive for your home. Here are a few easy ways to boost your home’s value with these quick and easy projects around your house.

Spruce up the Color with a Fresh Paint Job

One of the easiest and most cost-effective ways to increase the value of your house is to repaint. Focus on rooms that are the most “social” rooms of the house (i.e., the family room, dining room, and kitchen). This will give your home an updated and clean look, and remember if you have purple, pink or bright green on your walls, re-paint it. Chances are good that you are the only one who likes those colors.

Replace Appliances with Energy Saving Appliances

Old appliances, especially those that are less energy efficient can end up causing a homebuyer more money each year in utility costs. Make your home more appealing by adding a new vanity with granite top, while very inexpensive to buy and install can transform the look of an older bath.  A ne fixture can make all the difference in the world when it comes to having an “updated” look. Also, consider replacing kitchen appliances with stainless steel models. Windows must be CLEANED and in good working order. When the sun shines in, your home is worth more to a buyer!

Make Household Repairs

Have a loose cabinet door or a light switch that doesn’t function? Making small replacements can be a big difference when it comes to your home’s value – especially when you have an inspector and an appraiser visiting down the road. Have a friend or even better a realtor come in and point out some things you might not notice but stand out to others as offensive. Even new knobs on cabinetry can totally transform the look of a kitchen or bath.

Invest in Landscaping

The outside look of the house is extremely important for a home valuation. It provides the first impression and without a doubt will add to the overall appearance of your home. If it looks meticulous on the outside, a buyer’s expectations have already been satisfied to a certain degree. Don’t think they are not looking up and around when they get to your door. They are scrutinizing everything. More importantly, an overgrown lawn and shrubs, messy yard, spider webs at the corner of your door, toys and old flower pots and hoses strewn everywhere can detract significantly from a home’s value since it makes it appear older and poorly maintained. Add a flower bed, mulch, some shrubs and a couple nice potted plants on your front porch to accent your home’s lovely exterior.

Throw away the junk

And remember to purge and organize closets. Buyers need to see “space” when looking for a home and they will open every door and cabinet to find it. If your closets are crowded, overflowing or piled high with “stuff”, a buyer will perceive a lack of space in your home. You’re moving anyway, so throw out or pack up what you don’t need now and give your home the look of added space. Always keep in mind what you would like to see if you were shopping for a home and create that environment in your home. You will be rewarded handsomely.

New Jersey Buyer Closing Costs

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If I can help you with any additional information regarding this article, or with any of your home buying or selling needs or if you know someone who would like some assistance, please feel free to visit my website to learn more about me www.AdrienneFrancis.com or text or call me at (201) 259-4449 .

Fifty one homes sold Morristown/Morris Township in August!

Click Here to view One Liner Report

 

If I can help you with any additional information regarding this article, or with any of your home buying or selling needs or if you know someone who would like some assistance, please feel free to visit my website to learn more about me www.AdrienneFrancis.com or text or call me at (201) 259-4449 .

Rising interest rates WILL affect affordability

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Even a 10 percent drop in home prices is nullified by a 1 percent increase in interest rates. The figure below illustrates how this works for a $250,000 home purchase and the relative likelihood of each scenario.

To figure out which was a smarter bet–counting on home prices to fall further or interest rates to rise–our research department took the last ten years of monthly home price and mortgage interest rate data and ran the numbers to see which was more likely: an increase in mortgage rates or a further drop in home prices. Here’s what we found:

  1. A one percent increase in mortgage rates is ten times more likely to happen than a ten percent drop in home prices.
  2. A one percent rate increase more than offsets a ten percent reduction in home prices.
  3. When interest rates fall by one percent, the total interest paid is almost three times more than the interest savings from a ten percent drop in home prices.
  4. The probability of both happening at the same time is ridiculously small, and homeowners would still pay 15 percent more in interest over the life of the loan.

Interest rates have dominated the news in recent months as we’ve shattered record low after record low. Potential home buyers need to understand the positive financial impact low interest rates have on the cost of home ownership and the thousands of dollars that can be saved over the life of a typical mortgage loan. For those who can afford to buy, trade up, or invest, our current market presents a lifetime opportunity.

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