SONYMA Loans For First Time Home Buyers In Westchester County and NY State

SONYMA, short for State of NY Mortgage Agency has been a saving grace for many cash strapped, first time home buyers in NY State. Some of the benfits of a SONYMA loan are a minimum 3% down payment (with down payment assistance) and the ability to finance closing costs, along with a host of others that your mortgage professional will educate you on.

Many buyers that I have recommended this loan product to were originally considering an FHA loan for a condo purchase. Since the FHA only backs loans in approved condo complexes the SONYMA worlked well because they back all condos.

One gripe some have had is that the SONYMA loan takes a bit longer and has more paperwork. This past spring began working with two of it’s largest lenders to develop SONYMA Express. This program will help improve the processing time and quickly determine the buyers eligibility.

The program will also cut down the amount of paperwork needed by using auto-populated forms that only require a buyer signature. There is so much more availailable to you through this SONYMA program and the others they offer. I’m just making you aware of the option.

Quite often I will talk with buyers that haven’t been educated on all of the loan products that may be available to them if they qualify. The best thing you can do is find a mortgage professional that will answer all of your questions and guide you accordingly. Don’t assume that they will automatically educate you on everything, ask the simple question “Can you please tell me about any and all available programs that I/we may qualify for?

Christopher Pagli - www.WestchesterCountyRealEstateMarket.com

Accredited Buyer Representative

Real Estate Associate Broker

William Raveis Legends Realty Group

914.406.9023

chris@legendsrealtygroup.net

Energy Efficient Mortgages Are On The Rise

Energy efficient mortgages or "green" mortgages as they are also known, have gained momentum and popularity over the last 5 years.  They allow the home owner to finance certain home improvements such as as solar panels, geo-thermal heating, and more efficient air conditioning systems to name a few.  One thing to keep in mind is the cost of the improvements and how long you will live in the home.  You want to make sure you can get back what you have put in as some of these improvements are costly.  

Currently, Fannie Mae FHA, and VA offer loan products that cover energy efficient improvements.  Each will have their own qualifying criteria so have your lender explain them in more detail.  One caveat is the borrower will have higher monthly payments due to these loans and shoul factor that in when deciding what is best.  The flip side to this is the long term benefit and savings to the home owner.  The lender will also have to see the benefit and savings in order to fund the loan.

 Keep in mind that a lender is not only investing in your ability to pay back a loan but also the home you purchase, until it is paid off.  So any improvements that re-enforce the homes value will most likely be ok with them.  Another way to look at is they want to ensure that if you default they can get their money back if the home has to be sold.

Visit this link for more details on these mortgages...http://bit.ly/1fePuOd

Christopher Pagli - www.WestchesterCountyRealEstateMarket.com

Accredited Buyer Representative

Real Estate Associate Broker

William Raveis Legends Realty Group

914.406.9023

chris@LegendsRealtyGroup.net

mrwestchester.blogspot.com

Tips To Maintain and Improve Your Credit Score

Your credit score plays a very important part in the home loan process.  Typically they range between 340-850 and are calculated by three reporting agencies, Transunion, Equifax, & Expirian.  The formulas they use may differ so your scores may vary.  Lenders lend money based on your level of risk, the better your score (700 or better) the more favorable your rate and options.    
They are essentially investing in your ability to pay back a loan.  The term "mortgage" refers to collateral, you are using as collateral to pay back a loan.  Your FICO score is calculated using the following formula; 35% is payment history, 30% amounts owed, 15% length of credit history, 10% new credit, and 10% types of credit used.

Some ways you can make sure you are in a good position are to:

1) Pay your bills on time - one late payment can really have a negative impact on your score.

2) Check your credit report to make sure it accurately reflects your history.  If there are any errors or discrepencies have them cleared up immediately.

3) Keep your existing debt levels at less then 30% of the total credit available to you.  High balances have a negative effect as well.  Remember, the reporting bureau's check on a monthly basis in order to formulate your score.  Think consistency!

4) If you plan to apply with a few different mortgage servicers have them all pull your credit within the same two week period, credit scoring models will most likely recognize that you are shopping for a loan and it won't affect you your score much.  Try to avoid having numerous different types of inquiries.  They say that you should have no more then 3 in an 18 month period, outside mortgage pulls.  If you haven't found a home within the time that the mortgage pre approval letter expires they can usually do a soft pull that doesn't even show up to make sure nothing has changed.

5) If you need to repair your credit seek guidance.  There is a strategy behind credit repair and it takes time, be patient and consistent.

Christopher Pagli - www.WestchesterCountyRealEstateMarket.com
Accredited Buyer Representative
Real Estate Associate Broker
William Raveis Legends Realty group
914.406.9023