VA Loan Information Center

Archive for June, 2011

Have you made an application for a mortgage loan recently and all of a sudden your getting mail and/or phone calls about mortgage loans? You are being contacted because of something called a Trigger Lead.

What is a Trigger Lead and how did they get your private information? A Trigger Lead is generated when you apply for a mortgage loan and a credit report is requested by the company you applied with. Your name, telephone number and other information might be sold to other lenders by the credit bureau as part of a "trigger lead" program. This is where the mail and phone calls come from. The lender might call and say they are affiliated with a credit bureau or give some other red-flag reason for calling. Some unscrupulous loan officers have been known to make it sound as if they’re calling about your application in order to lure you into revealing personal information such as your social security number (which the credit bureaus can’t sell.)

Believe it or not there’s no law against the practice of credit bureaus selling your contact information to other lenders. Some even think it encourages competition.

If your like most people you don't want your personal information being sold. So what can you do?

You can opt out form Trigger Leads. Keep in mind if you are going to apply for a mortgage you'll need to opt out 5 days in advance. You can opt out on the web at www.optoutprescreen.com. There are two options on the site. One is to opt out for 5 years. This can be done completely online. The other is to opt out permanently. This is started online and requires you to complete a form and then print and mail it. You can also op out by phone. Per the web site "All Opt-Out requests must be submitted through this website or through our toll-free telephone number, 888-567-8688."

Did you find this information useful or helpful? If you did please comment below.



Your source for VA loan information.


My direct line is 240.813.0614. So let me hear from you! Remember...it doesn't cost a penny to talk...so call right now and I will answer all your questions.


Alan Gross

Senior Mortgage Consultant

PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878

Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com
NMLS#217388

There's an old saying in real estate that it's about Location, Location, Location. This is especially true right now. While the national S&P/Case-Shiller Home Price Indices showed prices fell year-to-year in the latest survey the housing market rebounded in the Washington, DC area showing a 4% increase in the past year.

With interest rates still low but expected to rise as we move forward now is the time to buy to get the best deals and keep the mortgage payment down. Moving forward higher prices and interest rates could make it harder to qualify for a home. Analysts say home prices are at the most affordable level we've seen in a long time.


Robert Shiller, an economics professor at Yale University and co-creator of the S&P/Case-Shiller home-price index, talks about U.S. home prices, and the outlook for the housing market and the economy. To see his recent interview on Bloomberg click on the video below.



PR Newswire posted an article titled "April Seasonal Boost in Home Prices According to the S&P/Case-Shiller Home Price Indices"

The table below summarizes the results for April 2011. The S&P/Case-Shiller Home Price Indices are revised for the 24 prior months, based on the receipt of additional source data. More than 24 years of history for these data series is available, and can be accessed in full by going to www.homeprice.standardandpoors.com



What do you think about the housing market in the Washington, DC area?



Your source for VA loan information.


My direct line is 240.813.0614. So let me hear from you! Remember...it doesn't cost a penny to talk...so call right now and I will answer all your questions.


Alan Gross

Senior Mortgage Consultant

PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878

Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com
NMLS#217388

School may be out for summer but it's not to early to start thinking about the fall and the new school year. Recently I found a blog post on the Military Duty Stations-Blog titled Homework and Schoolwork Website Resources.

The blogger opened the post with "I am an information miner….I could sit for hours and assemble directories with information that could be useful. Today is one of those days, that I want to just show a small collection of all the school and homework resources out there for children and teens. I know I probably haven’t even scratched the surface."

I'm not sure what the definition of small is but I counted over 100 links to sites that could be helpful in educating your children. It may take all summer to go through the links and find the ones that you feel will benefit your kids the most.

To visit the post go to: Homework and Schoolwork Website Resources



Your source for VA loan information.


My direct line is 240.813.0614. So let me hear from you! Remember...it doesn't cost a penny to talk...so call right now and I will answer all your questions.


Alan Gross

Senior Mortgage Consultant

PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878

Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com
NMLS#217388

We all know the economy and the real estate market have been experiencing a tough time over the past several years. But some light is beginning to appear at the end of what some have thought of as a dark tunnel.

In recent weeks major publications including The Wall Street Journal, CBSMoneyWatch.com, Forbes, and NPR.org have published articles that talk about why now is the time to buy a home.

The Wall Street Journal's article "Why It Is Time To Buy" states that "But the long-term benefits of homeownership remain very much intact. For now, at least, you can deduct the mortgage interest on your taxes—a big perk for people in higher tax brackets. You get to paint your walls any color you wish, without having to clear it with a landlord. And assuming you can buy a home for about the same price as you can rent one, buying will give you the ability one day to live rent-free. Come retirement time, a paid-off mortgage means your monthly expenses are significantly reduced, and you have a chunk of equity to play with."

The article goes on to say "Rising home prices made renting cheaper than buying in many parts of the country. But that dynamic has begun to change: Housing affordability, as measured by the ratio of median home prices to median household incomes, has fallen below pre-housing bubble levels in just over two-thirds of the country, according to an analysis of more than 380 metro areas by Moody's Analytics."

CBSMoneyWatch.com in its article "Real Estate: Why the Time to Buy Is Now - No, that’s not a joke. With rock-bottom interest rates and desperate sellers, this may be a once in a generation buyer’s market. Here’s what you need to know to take advantage." CBSMoneyWatch goes on to say "The housing market appears to be suffering a double dip, the most recent employment numbers were awful, and Congress is playing chicken with the debt ceiling. Our conclusion? It’s time to buy real estate."

In a related article CBSMoneyWatch gives "7 Reasons Why Now’s a Good Time to Buy a Home." says "Below are seven reasons why anyone who is pondering a home purchase might want to consider making a move sooner than later. Potential first-timers certainly have far easier logistics than current homeowners who need to sell to make a move. If you’re underwater on your loan, trading up might not be feasible. But there are indeed plenty of current homeowners sitting on ample equity. For them, and for potential first timers, here are seven reasons why now just might be a smart time to make your move." To see the seven reasons go to: 7 Reasons Why Now’s a Good Time to Buy a Home

Forbes has "9 Reasons To Buy A House Now." According to Forbes "If you’re planning to buy a house right now, the next few months may be the best time to buy. Waiting for both housing prices and interest rates to fall may not be a good strategy for potential homebuyers since analysts don’t expect any significant declines in these two most important home-buying factors." To see the 9 reasons Forbes feels it's a good time to buy go to: 9 Reasons To Buy A House Now

NPR.org says that "For Many, It's Still A Good Time To Buy A Home." This quote comes from the NPR.org post, "Everyone's re-evaluating more carefully whether they should own a home or not," Zandi says. "But for the vast majority of Americans homeownership is still the right thing." The post continues with "This is why homeownership has been such an important part of the American Dream, because people have used it as a way to save. And it's been a relatively safe way to save," Zandi says. "Now of course, as we know as we have seen, there are ups and downs. But in general it's been a pretty good investment."

If you have been considering buying a home but have had some reservations these articles suggest it may be time to jump off the fence and buy.

I'd be interested in what you think. Please make your comments below.



Your source for VA loan information.


My direct line is 240.813.0614. So let me hear from you! Remember...it doesn't cost a penny to talk...so call right now and I will answer all your questions.


Alan Gross

Senior Mortgage Consultant

PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878

Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com

Fannie Mae announced an extension of the incentives to purchasers of properties in their HomePath program. This is an extension of a program was to run from April 11, 2011 to June 30, 2011.

The new program runs from June 14, 2001 till October 31, 2011. The program offers the buyer up to 3.5% in closing cost assistance for homes currently listed in the HomePath Program.

These are the terms and conditions of the new special offer

• Buyers and/or selling agents (the agent representing the buyer) must request the incentive upon submission of initial offer.
• Initial offer must be submitted on or after June 14, 2011 and close by October 31, 2011. Initial offers made prior to June 14 are not eligible for the June 14 – October 31 incentive.
• Sale must close on or before October 31, 2011. No exceptions will be made to this deadline. (Note: Initial offers submitted after September 15, 2011 may not close by the incentive deadline of October 31, 2011.)
• Buyers must be purchasing a HomePath property to use as their primary residence to receive closing cost assistance. Second homes and investment properties are excluded from the incentive.
• Sales closed via the retail channel are eligible, including those utilizing public funds. Pool and auction sales are ineligible.
• Buyers must sign the Owner Occupant Certification Rider to the Real Estate Purchase Addendum.
• Buyers with total closing costs under 3.5% are not eligible to receive the difference as a credit.
• Properties where Fannie Mae acquired the property in connection with financing under a reverse mortgage are not eligible. Ask the listing agent for details.
• Buyers should consult their lenders for guidance on financing. Lenders and mortgage products may impose their own limitations on the use of the 3.5% incentive. For example, the lender may consider the incentive a Seller Contribution and limit the amount to 3.0%. In those instances, the remaining 0.5% will no longer be available to the buyer.
• Fannie Mae reserves the right to remove any property from promotion or end the promotion at any time. Any dispute over the payment of the incentive shall be resolved by Fannie Mae in its sole discretion.

As reported in HousingWire, in addition Fannie Mae will now offer a cash incentive of $1,200 to agents selling REOs, according to high level staffers at Fannie Mae.

"Beginning [Tuesday] we will continue our current incentive of up to 3.5% off buyer closing cost per property," said a Fannie Mae panelist at the REO Expo conference in Fort Worth, Texas. "And we are adding an additional $1,200 incentive."

This program allows homebuyers to buy a home for a reasonable price with the added benefit of reducing the cash needed for the purchase.

I would like to hear your thoughts on the program. Please comment below.



Your source for VA loan information.


My direct line is 240.813.0614. So let me hear from you! Remember...it doesn't cost a penny to talk...so call right now and I will answer all your questions.


Alan Gross

Senior Mortgage Consultant

PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878

Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com

Federal Reserve Chairman Ben Bernanke spoke at the At the International Monetary Conference, Atlanta, Georgia on Tuesday.

In his speech he said that economic growth had been slower than expected in 2011. He went on to say that the overall economic recovery was continuing at a modest pace.

As for the real estate market Bernanke said "In the residential sector, low home prices and mortgage rates imply that housing is quite affordable by historical standards; yet, with underwriting standards for home mortgages having tightened considerably, many potential homebuyers are unable to qualify for loans. Uncertainties about job prospects and the future course of house prices have also deterred potential buyers."

Bernanke went on to say "The housing sector typically plays an important role in economic recoveries; the depressed state of housing in the United States is a big reason that the current recovery is less vigorous than we would like."

Let's hope that now that the problem that "underwriting standards for home mortgages having tightened considerably" has been recognized something will be done about it. As Bernanke stated "housing in the United States is a big reason that the current recovery is less vigorous than we would like" and having reasonable underwriting standards would go a long way towards moving the economy in a positive direction.

Both home prices and mortgage interest rates are at levels that have created the most affordable housing market seen in many years. If I was to make one guarantee it would be that this housing affordability environment will not be here forever.

I would love to hear your thoughts. Make your comments below.




Your source for VA loan information.


My direct line is 240.813.0614. So let me hear from you! Remember...it doesn't cost a penny to talk...so call right now and I will answer all your questions.


Alan Gross

Senior Mortgage Consultant

PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878

Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com

It Wasn't Supposed To - But It's Happened Again - Mortgage interest rates have been falling for the past 3 weeks. The cause appears to be a slower than expected economy and slower than expected job growth.

Here's a quote from HSH.com "As of last week, HSH.com’s Fixed-Rate Mortgage Indicator –a broad-market tracker of fixed-rate mortgages–found that the overall average rate for 30-year fixed-rate mortgages slipped back by two more basis points, landing at an average of 4.88 percent, yet another fresh 2011 low."

"FHA-backed 30-year fixed-rate mortgages are a huge attraction for first-time homebuyers, and also give low-equity refinancers an option to pursue. Rates for these products also slipped back by two basis points to finish the week at 4.49 percent."

How long the low rates are going to last is hard to tell. The Federal Reserve is about to end it's QE2 program and when it ends expect interest rates to tick up.

What does it mean? I you are considering buying a new home or are looking to refinance your current home it's probably a good time to jump off the fence and get started.

I'm here to answer your questions.



Your source for VA loan information.


My direct line is 240.813.0614. So let me hear from you! Remember...it doesn't cost a penny to talk...so call right now and I will answer all your questions.


Alan Gross

Senior Mortgage Consultant

PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878

Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com