This could be the time to get re-prequalified

If you were pre-qualified for a mortgage loan in the last few weeks, you should contact your mortgage lender to be sure you still qualify. Daily I am receiving announcements from my investors listing qualifying changes on their loan programs and in some cases the discontinuation of certain loan programs altogether.
If the home you plan to purchase is located in a “declining market” many investors are now requiring an additional 5% down payment. On the purchase of a $200,000 home, the down payment would increase by $10,000 and very few people have this kind of money just setting in the bank. An FHA loan would be a good alternative if should this happen, as they do not require the additional down payment.
Credit scores are now playing an increasing role in the interest rate you will be offered. It is calculated on a sliding scale; the lower your scores the higher your interest rate will be. This could very well affect your debt to income ratio and disqualify you for the loan you were pre-approved for just last week.
With some investors, such programs as a cash-out on an investment properties have been discontinued along with “stated income” for borrowers who are not self-employed. Other programs have stricter guidelines requiring lower debt-to-income ratios, higher credit scores, lower loan-to-value percentages and additional cash reserves.
Make sure your lender is staying on top of these changes in the market place so that you are not caught at the last minute without a loan to purchase your new home or to close on the refinance you applied for.



Denise Wing, C.E.O.
Certified Mortgage Lender
Academy National Mortgage Corporation
303-987-0622

You're 55 and haven't saved a dime

Below are a few tips you might want to try if you are looking at retiring in the next 10 years and have little or no money saved.

Do an inventory of what you have and what you will need.
A useful tool is MSN Money’s Retirement Income and Retirement Expense calculators. These can be found on their website under “finance”. Once you see it in black and white, it could be frightening, but hopefully it will motivate you to make huge changes in your spending and fast.
Place every dollar possible into tax-deductible retirement plans.
Enroll in the retirement plan offered by your employer. Many companies match your contribution by 25%, 50% and at times up to 100%. If you already contribute to a 401K plan at work, check into the maximum percentage they will allow and increase your contribution. If your employer does not offer a retirement plan, open at IRA account as soon as possible.
Make a zero-based budget.
This type of budget starts with the most essential expenses then each additional expense is added on by their importance until you run out of money. Your first priority is your contribution to a retirement account followed by your mortgage payment then other debts. If you run out of money before you reach such items as entertainment or a vacation fund then so be it. Living simpler now and having money for retirement is not only practical, but will give you peace of mind.
Start a small home based business.
Normally you are allowed to contribute up to 25% of your self-employment income to a tax-deductible Keogh plan, even though you are enrolled in another retirement plan.
Plan to sell and down size your home.
Plan to sell your present home and moving into one that is smaller. If you have good equity in your home bank part of the proceeds you make. This would give you an additional financial cushion. If selling is not the way you want to go, look into taking out a reverse mortgage once you have turned 62. This loan can give you additional income as long as you live in your home.
Be realistic with your dreams of retirement.
There is a very good chance you will not be able to retire at 65. The longer you work, the more money you can save and less non-earning years you will need to finance. Once you have calculated what you will have by the time you retire, start planning how you can live in retirement with that amount of income.



Denise Wing, C.E.O.
Certified Mortgage Lender
Academy National Mortgage Corporation
303-987-0622

Foreclosure Scams

At this time the scams being used to victimize homeowners facing foreclosure fall into three main categories.

Phantom help: These self-appointed “rescuers” charge outrageous fees for useless phone calls and light paperwork. This predatory scam costs the homeowners time, money, and hope. They never result in saving the home from foreclosure, but wastes precious time that could have been used seeking qualified help.

The bailout: The homeowners are told if they sell their home to the scammer at or just above the payoff amount of the mortgage they would be able to rent the home and eventually buy it back. It ends up that the terms for the buy-back are so outrageous that it becomes impossible and the homeowner loses possession and the scammer walks away with the equity in the house.

The bait-and-switch: The homeowners are deceived into believing they are signing documents to bring their mortgage payments current, but in fact they are signing over title to the home. In many cases they don’t even know they have been scammed until they receive an eviction notice.

Homeowners facing foreclosure can be very desperate and make decisions that could destroy them financially. Before making any decision based on promises written on a florescent sign tacked to a telephone pole, contact an attorney, credit counselor, or a housing counseling agency. One website is NeighborWorks Center for Foreclosure Solutions. They will make referrals to local agencies that are reputable and truly helpful.


Denise Wing, C.E.O.
Certified Mortgage Lender
Academy National Mortgage
303-987-0622