New jobs & Refinancing... What comes first?

Homeowners considering finding a new job and refinancing a house may be wondering which task to take on first.  According to mortgage experts, homeowners should complete their refinancing before making any major career changes, especially if they are planning to start their own business or become an independent contractor, in which case, income may fluctuate.

Making sense of the story:

• During the refinancing process, homeowners may find that actively looking to leave their current job may impact how the bank views giving them a mortgage.  The search will raise a question mark about their future employment and their ability to pay the mortgage.

• In addition to checking employment at the start of the application process, many lenders will verify such information as late as the last 72 hours before mortgage closing.  If they learn a borrower is starting a new job in the very near future, the mortgage can be delayed or even derailed.  And borrowers who withhold such information could be committing income fraud.  Other lenders, however, say they make loans based on a moment-in-time snapshot of a borrower’s finances.

• An advantage to refinancing first is that the borrowers are freeing up additional cash flow by reducing their monthly payment.

• All that said, however, there are advantages to refinancing later, especially for those who might have to relocate when they change jobs.

• A person may get a new job with more income, which may help him or her qualify for a larger mortgage, or even better terms.
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3 bed, 2 full bath, 1258sqft home 1 block from Montezuma $159,900

VIEWS VIEWS VIEWS!!! 1 block from Montezuma and Bear Creek hiking trail. This is a Standard Sale!!! 12 hour turnaround to all offers. This 3 bed, 2 full bath, 1258sqft home sits on an over sized lot 6096sqft and is located within walking distance to grocery stores, elementary school, Old Town La Quinta, community pool and tennis. Home has been completely remodeled and features beautiful new flooring, stone counter tops, new interior & exterior paint, new ceiling fans, double pane windows, new carpet, new front & back yard desert landscaping (with smart timer installed by CVWD), new door hardware, new stainless steel appliances and more!!! Enjoy completely enclosed back yard with private patio. Take advantage of low utility bill's in Imperial Irrigation District... and best of all, NO HOA DUES!!!

 CLICK HERE for additional pics.

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Mortgage deal could bring billions in relief

On Thursday, federal and state officials announced a $26 billion foreclosure settlement with five of the largest home lenders.  California is expected to receive approximately $12 billion in principal write-downs, including through short sales, over the next three years, according to the state attorney general's office.

Making sense of the story

• The deal settles potential state charges about allegations of improper foreclosures based on robo-signing, seizures made without proper paperwork.
• The settlement sets up a federal monitor to oversee the process and try to prevent the challenges that tripped up many homeowners seeking help in earlier programs designed to address the housing crisis.
• Most of the relief will go to those who are underwater on their homes.  That relief will come over the course of the next three years, with banks having incentives to provide most of the relief in the next 12 months.
• At least $17 billion will go to reducing the principal owed by homeowners who are underwater and behind on their mortgages.
• Up to 750,000 other underwater homeowners who are current on their mortgages will be able to refinance their current loans at lower rates.  They will not receive a reduction in principal, but with mortgage rates near record lows, they could receive substantial savings on their monthly payments.
• Approximately $1.5 billion will go to homeowners who had their homes foreclosed upon between Jan. 1, 2008 and Dec. 31, 2011, and who meet other criteria.  They will receive up to $2,000 each.

The five mortgage servicers that are parties to the settlement include Bank of America, JPMorgan Chase, Citigroup, Wells Fargo, and Ally Financial (formerly GMAC).

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More mortgage relief from the White House – but congressional ok doubtful

In his State of the Union Address, President Obama laid out a plan to help responsible borrowers and support a housing market recovery.  Details of that plan were released yesterday.  However, funding for the proposed program must be approved by Congress, lowering the possibility that it will be implemented quickly. 

Making sense of the story

• Operated by the Federal Housing Administration, the plan would allow underwater homeowners to refinance into cheaper federally insured loans.  Borrowers with good credit who are current on their loan payments are eligible.
• The measure also streamlines the process of refinancing an underwater mortgage, eliminating the need for an appraisal or submitting a new tax return.
• To qualify, borrowers must be current on their mortgage, have a minimum credit score of 580, and must be refinancing a loan on a single-family owner-occupied principal residence.
  
   
• Lenders only need to confirm that the borrower is employed.  Loans that are more than 140 percent of the home value probably would not qualify until banks wrote down part of the balance.
• Congress must approve $5 billion to $10 billion in funding, leading housing experts to praise the plan’s objectives with skepticism of it passing this year. 

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3 Bedroom Pool Home W/ Mountain Views. Completely Remodeled.

Standard Sale!!! 12 hour turnaround to all offers. This 3 bed, 2 bath, 1446 sqft pool home is located within walking distance of hiking trails, grocery stores, elementary school, Old Town La Quinta, community pool and tennis. Home has been completely remodeled and features beautiful new laminate wood flooring in living room & bedroom, new carpet in master bedroom, new granite countertops, new interior & exterior paint, refurbished cabinets, new stainless steel kitchen sink, new faucets throughout home, new ceiling fans, double pane windows, new door hardware, new stainless steel appliances and more!!! Enjoy mountain views from your completely enclosed back yard with private patio and pool. Take advantage of low utility bill's in Imperial Irrigation District and being connected to natural gas... and best of all, NO HOA DUES!!!

To See Additional Photos CLICK HERE.

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Pool Home in La Quinta Cove!!! 3 Bed 2 Bath 1398sf.

Standard Sale!!! 12 hour turnaround to all offers. This 3 bed, 2 bath, 1398sqft pool home is located within walking distance of hiking trails, grocery stores, elementary school, Old Town La Quinta, community pool and tennis. Home has been completely remodeled and features beautiful new tile flooring in common areas, new carpet in bedrooms, new granite countertops, stainless steel kitchen sink, new cabinets, new interior & exterior paint, new tile roof, new ceiling fans, new double pane windows, new landscaping (with smart timer installed by CVWD), new hardware & fixtures, new stainless steel appliances and more!!! Enjoy completely enclosed back yard with private pool. Take advantage of low utility bill's in Imperial Irrigation District... and best of all, NO HOA DUES!!!


CLICK HERE for additional photos.


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