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What to Know About New Credit Report Changes

What to Know About New Credit Report Changes

As part of their plan to improve credit report accuracy, the three consumer credit reporting agencies (Equifax, Experian and TransUnion) announced changes to what delinquent credit will be identified on credit reports.

Credit ReportEffective July 1, 2017, most civil judgments and tax liens will no longer be shown on credit reports. This is because many of these public records do not meet the credit reporting agencies’ new stricter standards for containing all of the personal information the agencies now require (like social security numbers, for example). The new standards are meant to protect consumers by preventing false identity matches and incorrect reporting information.

What does this change mean to potential homebuyers with tax liens and judgments on their reports?

According to research by FICO, about 12 million people will have a tax lien or judgment removed from their credit report. The majority will see a modest lift (20 points or less) in their credit scores as a result.

How does this change impact getting approved for a home loan?

Fannie Mae, a leading source for mortgage financing, responded to the credit report change, noting existing policy will still require those with genuine delinquent credit, including tax liens and civil judgments, to pay these debts at or prior to closing.

However, the new standards will be especially beneficial to thousands of consumers with inaccurate information on their credit reports due to mismatched records. They will no longer experience the frustration of trying to remove erroneous judgments and tax liens from their credit reports before being approved for a home loan.

If you or someone you know has been refused a home loan because of tax liens or judgments on a credit report, please don’t hesitate to call and see if these changes can be of benefit.

On your team,

Eric

P.S. You can help me get this important information in front of people by “Liking” and “Sharing” this post. Who do you know that needs a mortgage and has credit scoring concerns or questions? Please don’t hesitate to contact me directly if there is anything I can do for you or anyone you know.

© 2017 Eric Leigh and Vantage Production, LLC. All rights reserved.




Keep Calm and Carry On

Keep Calm and Carry On

Keep Calm and Carry OnAs we march into spring, it seems that everyone gets busier, more frenetic. Like the birds and the bees, we’re inspired to improve our nests and bring home the nectar to our family hives. As the pace picks up, I’m reminded by this story to keep a calm head:

Once a wise man was walking with a few of his followers. They saw a small lake in the distance, and the wise man said to one of his followers, “I am thirsty. Go get me some water from that lake.”

The follower eagerly ran to the lake. But there were people in it, splashing around, making the water cloudy. The follower shouted that a very important man wanted to drink the water and everyone should get out, but no one listened. Feeling ashamed, he returned to the wise man, complaining “The water is too dirty, and no one will listen to me and get out.” The wise man nodded, but said nothing.

After an hour, the wise man asked the same follower to go back to the lake and get him some water. This time the follower found that everyone had left, and the silt had settled down. The water now looked fit to drink, so he brought some to the wise man.

The wise man looked at the water and said, “See what you did to make the water clean? You let it be. Your life force is like the water. When you are frantic and anxious, your spirit becomes cloudy and distasteful. Just let it be. Things will become clearer. It is effortless.”

All My Best,

 

 

Eric Leigh
Your Mortgage Consultant For Life

P.S. If spring has you wound up, remember to keep calm and carry on! If you need anything from me, reach out to me by email at Eric [at] EricsLoans [dot] com…or Contact Me via this website.




Strength Through Adversity

Strength Through Adversity

As you embrace the start of the New Year, it’s important to give yourself room to grow. It’s also important to remember that growth is not always easy or obvious. I’m reminded of the following story, a valuable metaphor for embracing adversity:

A man found the cocoon of a butterfly. A small opening appeared. The man sat and watched the butterfly for several hours as it struggled to force its body through the little hole. Then it seemed to stop making any progress. It appeared as if it had gotten as far as it could and could go no farther.

The man decided to help, so he took a pair of scissors and snipped off the remaining bit of cocoon. The butterfly then emerged easily. But it had a swollen body and shriveled wings.

The man continued to watch the butterfly because he expected that at any moment the wings would expand and the body would contract to the proper proportion.

Neither happened! In fact, the butterfly spent the rest of its life crawling around. It never was able to fly.

In his kindness and haste, the man had not understood something. A restricting cocoon and the struggle for the butterfly to get through the tiny opening were nature’s way of forcing fluid from the body of the butterfly into its wings so that it would be ready for flight once it achieved its freedom.

Sometimes struggles are exactly what we need to become stronger in character and determination. If nature allowed us to go through life without any obstacles, we would not learn how to be resilient and powerful. We might never fly!

Kind Regards,

 

 

Eric
Your Mortgage Consultant For Life

P.S. Let me know if you have any great stories to share about resilience. Email me at Eric [at] EricsLoans [dot] com, or Contact Me via this website.




FHA Insurance Premiums Drop

FHA Insurance Premiums Drop

FHA Insurance Rate Cut Helps Offset Some Recent Interest Rate Hikes

FHA’s annual mortgage insurance premiums are being reduced by .25% for most new borrowers who are closing on their FHA insured loan on or after January 27, 2017. This reduction will offset some of the recent interest rate increases that we have seen happening since November of 2016.

The savings from the lower FHA mortgage insurance premiums are very good. Here is a chart illustrating approximately how much FHA borrowers will save if they choose an FHA loan of >= 20 years in length:

Loan Amt Down Payment Previous MIP New MIP Estimated Savings per $100K
< $625,000 < 5% .85% .60% $250
< $625,000 > 5% .80% .55% $250
< $625,000 < 5% 1.05% .60% $450
< $625,000 > 5% 1.00% .55% $450

FHA homeowners with an FHA loan already would have to refinance to take advantage of these cuts in the cost of the mortgage insurance.

The reason we are seeing this reduction is because of the strong, U.S. housing market. Home prices have been moving higher for about five years now, which is part of why cuts like this are possible.

Also worth noting is that additional cuts to the FHA upfront insurance premium (currently at 1.75%) could be on the horizon. The upfront premium was as low as 1.00% in 2010 and 2011, so future cuts are possible. Our country’s continued economic recovery and strength in the housing market will play a big part in determining if this happens.

Should you have any questions regarding a new FHA loan, or if you’re just looking for trusted mortgage advice regarding your next home loan, CONTACT US directly for a complimentary consultation. We’re here to help!

On your team,

Eric

P.S. You can help me get this important information in front of people by “Liking” and “Sharing” this post. Who do you know that needs a mortgage and has home buying questions? Please don’t hesitate to contact me directly if there is anything I can do for you or anyone you know.

© 2017 Eric Leigh. All rights reserved.




New Conforming Loan Limits in 2017

New Conforming Loan Limits in 2017

The Federal Housing Finance Agency (FHFA) announced new maximum loan limits for conforming loans acquired by Fannie Mae and Freddie Mac. This is the first increase since 2006.

Effective January 1, 2017, the maximum loan limit for one-unit properties in much of the country will be $424,100, up from $417,000. Higher loan limits will be in effect in higher-cost areas. New loan limits, however, will not take effect in 87 counties around the country.

What prompted this change?

The baseline loan limit of $417,000 was established by the Housing and Economic Recovery Act of 2008 (HERA). The law requires that this loan limit be adjusted each year to reflect changes in the national average home price.

FHFA’s most recent third quarter Home Price Index report showed average home prices have risen about 1.7 percent above where they were in the third quarter of 2007, prompting an equivalent increase in loan limits.

With home prices on the rise, the conforming loan limit increase opens up opportunities and helps keep home loans more affordable for more Americans.

If you’d like to learn more about these new loan limits or other loan products, please get in touch with me today. I’m happy to help!

On your team,

Eric

P.S. You can help me get this important information in front of people by “Liking” and “Sharing” this post. Who do you know that needs a mortgage and has home buying questions? Please don’t hesitate to contact me directly if there is anything I can do for you or anyone you know.

© 2016 Eric Leigh and Vantage Production, LLC. All rights reserved.




Solid Home Price Gains Seen in September

Solid Home Price Gains Seen in September

CoreLogic reported that home prices, including distressed sales, rose 6.3 percent from September 2015 to September 2016 and were up 1.1 percent from August to September. Looking ahead, CoreLogic forecasts a 5.2 percent increase from September 2016 to September 2017. A spokesperson for CoreLogic said that due to the recovery in home prices in the last five years, home-equity wealth has doubled during this time to $13 trillion.

CoreLogic Home Price Index Report (September 2016)

CoreLogic Home Price Index Report (September 2016)

The next time you talk to a person who you know would benefit from my help, call or email me immediately.

On your team,

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Eric

Infographic (c) 2016, courtesy of Vantage Production, LLC. Shared with permission.



Fall In Love With Your Home!

Fall In Love With Your Home!

Purchasing a Home In the FallHere’s a quick note to let you know how I can help you—or anyone you feel comfortable introducing me to.

If you or someone you care about had been thinking about buying or selling a home in the spring or summer and decided to wait, there is a subtle yet important shift to moving in the fall that deserves consideration.

Summer moves are often triggered by family needs, while fall and winter moves are frequently influenced by external factors such as work. Whether you are buying or selling, here are critical seasonal influencers which affect the value of a home.

Spring/Summer Move:

  • More houses on the market
  • Families have more free-time
  • People want to move

Fall/Winter Move:

  • Fewer homes on market
  • More serious buyers searching
  • People need to move

The next time you notice a person who is falling into an autumn or winter move or refinance, and you know they’d benefit from my help, call or email me immediately. I promise they’ll be delighted you introduced us.

Always on your team,

eric_signature

 

 

Eric




July Is Family Vacation Month

July Is Family Vacation Month

Here’s a quick note to let you know how I can help you—or anyone you feel comfortable introducing me to.

Family VacationOutside of traveling for Thanksgiving, more families celebrate reunions in July than any other season. The availability of outdoor locations and activities is a popular choice, because the weather is so nice. And since the kids are out of school, summer is generally an easier time to travel for most.

If family is visiting you this summer and conversations turn to the possibility of a move that brings them closer, feel comfortable giving my time and expertise to them. I can help them weigh the options of getting a condo for the summer and holiday travel, or the best options for a permanent relocation. Also, at this time, loan programs for second properties and new purchases are outrageously favorable.

Wouldn’t it be great if you could pick your next neighbor and it is someone you would love to have nearby? Call or text me and let me know how I can help make this a reality!

Always on your team,

eric_signature

 

 

Eric




Toddlers and Teenagers Move Differently

Toddlers and Teenagers Move Differently

Here’s a quick note to let you know how I can help you—or anyone you feel comfortable introducing me to.

ToddlersandTeensNot only is summer the time for vacations, it is also the time you’ll notice friends, family and neighbors moving. The reason more people move in the summer is simple; school is out. Rather than being “the-new-kid-in-school” most families choose to move during summer break so the kids can become acclimated before school starts.

But moving is rarely easy and kids, teens especially, tend to experience strong emotions associated with moving. For that reason, I’ve put together a quick article called, Making the Move Easy on the Kids, that offers great advice on how to involve teenagers differently than toddlers. Contact me for a copy.

And the next time you notice a person who is preparing to move to away or you hear of someone moving in, call or text me and we’ll both make the move easy for the whole family.

Always on your team,

eric_signature

 

 

Eric




Is Age 60 The New 40?

Is Age 60 The New 40?

baby-boomers-640x300Here’s a quick note to let you know how I can help you—or anyone you feel comfortable introducing me to.

It seems like every day you hear a story on the news about how people are living longer. And as people get older, many are staying active, working well into retirement, eating healthier, exercising, traveling, and generally not “acting their age”. In fact, many people consider age 60 as “The New 40”.

Another thing this age group has in common is rediscovering themselves. For the first time in decades, empty-nesters no longer need to consider square footage and school districts as a driving force to be in the right place to live. One of the rewards of living a long, healthy life is being able to afford life on your terms.

The next time you’re talking with a friend, family member or neighbor and they mention a move to accommodate a lifestyle change, stop, take out your cell phone, look up my number and immediately call or text me. Together we will make sure they get advice that keeps them financially healthy for many years.

Always on your team,

eric_signature

 

 

Eric