How We Helped Tracy with Her Mortgage by Always Being Helpful

How We Helped Tracy with Her Mortgage by Always Being Helpful

"The overall mortgage went smoothly. I sold my home, and everything went great. I primarily dealt with his assistant Megan. If I had a question or anything, she would always respond to my emails. She was very helpful!"

- Tracy McKee

Check Out Our Latest Testimonials

Jay Moderski Reviews Cateria
How we helped Cateria with her mortgage needs by making sure to walk her through the process

"They were very thorough. I didn’t have a negative or nerve wracking experience because they made sure to walk me through so it wasn’t as crazy. They did a nice job for us!"


Jay Moderski Reviews Jose De La Mota Peynado
How we helped Jose acquire a loan that was better than he expected by keeping in constant communication with him

"They worked really well with us and it was a positive experience. They were very accommodating and tried to find us what we were looking for. They were clear with everything and communication was great guiding us through the whole process. Even when it was a little delayed, they just kept looking and actually ended up finding us something better than what we were expecting!"

Jay Moderski Reviews Leila Karlsen

How we helped Lelia get her mortgage by always being accessible to her

"We got the mortgage which is what we wanted. It met our needs and it was a pretty smooth process so we were very happy. Everyone was really accessible that was the good thing. I worked closely with Megan and she was always accessible by phone or email and they would always call back if I had questions or anything. I’ve already referred the Jay Moderski team to a close friend of mine!"

- Leila Karlsen

My Latest Testimonial - "You need to use Jay"

Jay Moderski Reviews Steve Lattanzio 
"Jay Moderski was recommended to me by my Realtor and I am so glad for the recommendation! Everything was as anticipated. There were no surprises and everything went really well! Megan, Jay’s assistant, worked with me from day one. She was very upfront and forthright with me throughout the entire process. Anytime I had a question, she’d get back to me within 24 hours. They were both very professional and I really appreciated that! We had an issue with flood insurance and they really stepped up to solve the problem. My Realtor had told me that I didn’t need flood insurance and Megan stepped in and took a look into it. Megan found out based off of the appraisal that we did need flood insurance. We got the insurance and later on found out from the township that we were required to have flood insurance. They really helped us in that aspect and throughout the whole process. They are both efficient in what they do and if you’re looking for a lending company that is upfront with you and willing to walk you through the process, you need to use Jay and Megan. They get the job done efficiently and proficiently. I would highly recommend them!"

My Latest Testimonial - "Jay definitely got it done without issues!"

Jay Moderski Reviews Rachel Hatton 
"I had gone through a couple mortgage brokers and they were all terrible. They were unresponsive and I had horrid experiences with them so my Realtor suggested that I work with Jay Moderski. I got in contact with him and everything worked out the way we thought it would! Jay was very responsive and he kept me updated on the progress of everything and made sure to explain everything to me. He didn’t sugar coat anything and he actually let me know what was going on. We got to closing very quickly and the settlement was extremely easy! Jay definitely got it done without issues! I’d highly recommend him!"

All You Need to Know About Credit: Part 2

Do you have a friend or family member who is thinking about buying a home, or refinancing their current home? I build my business by referral, so if you know of someone who could use the expert advise of a mortgage lender or finance officer please don't hesitate to give me call. I'd be more than happy to provide a FREE Consultation.
 

Understanding Credit and How it Affects You: Part 2

 

Last time you saw this blog, Dave Wheeler and I were talking about credit, and we're going to be answering some more of your questions about this important topic.

Is there a magic number for how often my credit can be pulled?

It's not that there is a magic number, it's that we have to break out a number of reasons why your credit is being pulled, and some of them might have an impact, and some might not. If you're trying to spend someone else's money, which we call a hard inquiry, it may have an impact. When you're not trying to spend another person's money and following up on your credit report, or a company you do business with is pulling it up for accounts receivable, you're not trying to do anything there so you will not see this coming up on your reports. These things will have no impact and are referred to as soft inquiries.

However, when you're trying to spend somebody else's money we break them down into two different ways. We have ones that we call rate shopping: mortgages, autos, or student loans. There is also non-rate shopping which we just lump together and call it consumer credit.

For rate shopping, it's not that every time someone pulls your credit report you're getting a new house or a new car. Multiple people have to pull your credit report to make sure the loan you have is the right one for you. So, what we're concerned with as score developers is that we look at it and determine when your behavior really changed, or what would be indicative of you paying late in the future. What we're really concerned with is the first time your credit report is pulled for that reason. Every other time after that, as long as it's in a certain block of time, we're only going to be concerned with that first pull that alarmed us. It's when you start, and then freak out and stop, then let time pass and restart in the future, that it looks like you're buying two homes. You can actually do people a favor and extend the amount of time they have to shop just by pulling your credit.

What is good credit?

Well, we obviously know it's paying your bills on time. However, 65% of your ability to qualify for the best loans has nothing to do with your ability to pay your bills. The rest depends on what types of accounts you have, how you've used what you're allowed to use, how long you've had the accounts, and how much new credit you're looking for. The most well rounded people we know have a revolving account (a credit card or store card), and at least one installment account which is an auto loan, student loan, or mortgage.

We use the 'eating healthy' analogy. In order to be healthy you need your vegetables, grains, and proteins - and the same is true with credit. You need at least one installment and one revolving account. You don't want to load up on one and lack the other. Just take everything on little by little and don't indulge in one over the other.

So, when you have a $3,000 limit on your credit card and you already have $2,800 on the card, do credit viewers see this negatively that you're maxing out your limit?

We do. People often say that they can run their credit card to the max every month, and then pay it off in full. However, we cannot see what you pay, we can only see what you've used each month. So, the only thing that the creditors report to the bureau every month is that you're running your card up to the max. When you're compared to other people, you're being compared with those who are living at or above their means, so the likelihood you might go late on a loan is increased. So, to defeat that, just pay your credit card off early or just don't charge as much. 

If you have any more questions relating to credit and how it might be hurting or helping you, feel free to contact me because I know these things can be intimidating. Credit can sometimes be a complicated issue, but that's what I'm here for.


You can call me at (215) 591-0222 x 1630 or visit www.therightloanforyou.com

Understanding Credit is Key to Having Financial Stability

Do you have a friend or family member who is thinking about buying a home, or refinancing their current home? I build my business by referral, so if you know of someone who could use the expert advise of a mortgage lender or finance officer please don't hesitate to give me call. I'd be more than happy to provide a FREE Consultation.

A lot of people have been asking me about the difference between credit reports and credit scores, so today I have Dave Wheeler from Credit Plus who is my expert on this subject. He's going to clear a few things up for us.

Dave used an analogy to compare a credit report and credit score, saying that a credit report is similar to a movie about your financial picture. A credit report encompasses your whole history, both past and future. A credit score is like a snapshot of your current credit report, and it is always changing from moment to moment. To summarize, I would say that a credit report is the larger picture surrounding your credit score. A credit score is an instant interpretation of your credit report, or a tiny snapshot of your credit picture.

How long does a negative credit report affect you?

Most negative information will stay on your credit report for 7 years, but we know that it's not agreeable to use your past activity as an indicator of how you will behave in the future. As negative reports grow older, they begin to impact you less and less. There is a magic time frame to recover from negative reports starting at 7 months, then 12 months, and then 24 months, etc. The main thing here is not to have multiple negative reportings occur after each other. If you are having trouble keeping good credit, then you should seek professional advice from myself or Dave to point you in the right direction.

Hopefully this information has been helpful to you, and if you have any more questions about credit, please do not hesitate to call me. I can be reached at (215) 591-0222 x 1630 or you can visit my website: www.therightloanforyou.com

Excellent Qualification News for Low FICO Borrowers

Do you have a friend or family member who is thinking about buying a home, or refinancing their current home? I build my business by referral, so if you know of someone who could use the expert advise of a mortgage lender or finance officer please don't hesitate to give me call. I'd be more than happy to provide a FREE Consultation.

Welcome back to my video blog. I have some great news for low FICO borrowers.

Gateway funding has now reduced our minimum FICO requirements for FHA borrowers down to 600 credit scores. There are a few restrictions as it still follows normal guidelines set by the FHA. For FICO scores between 600-619, our maximum debt-to-income ratio is 43% and there can be no mortgage lates in the last 12 months.  Nonetheless, this is a really excellent opportunity to open doors for eligible clients.

You will also need at least 3.5% of your own funds and three month's reserves. For example, whatever your principle in interest payment is, perhaps it's $1,000, we want to see that you have $3,000 in your bank account or in a retirement account after all of your closing costs have been paid.

Overall this is really great news, so if you know anyone that wants to get qualified – be sure to let us know. If you're not sure about your credit, feel free to give us a shout. Call me at (215) 591-0222 x 1630 or visit www.therightloanforyou.com

Hopefully we can get this spring market moving. Thanks for tuning in again!

With Interest Rates at Historic Lows - Learn the Secrets to Simple Refinancing

Do you have a friend or family member who is thinking about buying a home, or refinancing their current home? I build my business by referral, so if you know of someone who could use the expert advise of a mortgage lender or finance officer please don't hesitate to give me call. I'd be more than happy to provide a FREE Consultation.

With interest rates still at historic lows, you might want to consider refinancing your home. However, there are a few factors to consider when making this decision.

If you take a look at these graphs you can notice a trend between the 30 Year fixed Finance and the Refinance Index. For the most part, when one is up the other trends down. In 2014, as the 30 Year fixed finance trends upward, you'll notice that refinancing has steadily lowered itself to a rate around 3.75%

This then begs the question: Is it time for you to refinance? Well, the answer is not so simple as 'yes' or 'no'.

Some crucial factors in deciding this are your current interest rate, and whether or not you have mortgage insurance, and also if there is a program for you to get rid of your current mortgage insurance.

If you're unsure about what to do, feel free to contact me, because interest rates are still very low right now. I am more than happy to help assess your situation and see if you should take action or not.

I'm more than happy to help you make this important decision. Please contact me at (215) 591-0222 x 1630 or at www.therightloanforyou.com

What Are the New FHA Loan Limits?

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Welcome back! You may have heard there are some new changes to FHA loan limits. Prior to this week, the loan limit was $417,000 in Philadelphia and the surrounding counties; that number has been slashed. The new limit varies by county and if you want to find out what your limit is, you can check it out here: https://entp.hud.gov/idapp/html/hicostlook.cfm

It's some disappointing news, but it was inevitable. If you have any questions, please give me a call today!

The Don'ts of Credit

The loan process can be agonizing. It seems like you are always asked a million questions and have to file so much paperwork. Unfortunately, I can't change that for you, but what I can do is help you avoid a damaging situation with your credit.

If you are in the closing period of your home but have not officially closed, DO NOT open new credit. The new rules of our industry require us to do a soft pull of your credit. That means we will need to check to see if you have acquired any new debt prior to closing. If you do, it could ultimately make you ineligible for the loan.

So please do not lease a new car, buy furniture on credit, etc. Wait until after your home has officially closed.

If you have any questions, please give me a call. Even if I'm not your official lender, call me with any questions you may have.

Happy Thanksgiving!

Happy Thanksgiving! It’s the season of giving and thankfulness and I couldn’t help but reflect on this past year. Our team has had such an incredible year and it’s all because of you and I just wanted to take this time to thank you. Have a wonderful and safe Thanksgiving! Please let me know if there is anyway I can help you!

Federal Reserve Scaling Back on Bond Purchasing

Welcome back to my video blog. Interest rates have been phenomenal for the past year. You may have heard that they are beginning to creep up, though. Why is that?

Right now the Federal Reserve is purchasing bonds, giving investors more confidence. This in turns creates steady and low interest rates. However, as the market begins to improve, the Federal Reserve will eventually scale back on its bond purchasing. This will cause interest rates to rise.

Although, we don’t know exactly when this will happen, we know it will happen. The Federal Reserve meets Dec.17th and we should find out more information about whether they will scale back on their bond purchasing.

If you are considering making a real estate move, it’s important to keep an eye on this topic. If you have any questions, please give me a call! Thanks for watching!

How Does Federal Bond Purchasing Affect the Market?

Welcome back to my video blog. Today I wanted to take the time to answer a couple of questions I’ve been getting asked about a lot lately.

What are interest rates doing?

As many of you know interest rates have been fluctuating lately. Why is that? There will always be fluctuation when there is uncertainty in the market. The good news, though, is because the Federal Reserve is not pulling back on its bond purchasing, investors feel more comfortable. This in turn causes interest rates to remain low.

Is it a good time to refinance?

With low interest rates, now is a good time to see if you qualify. Take advantage of the market and see what programs are out there that can benefit you.

If you have any questions, please give me a call. Thank you for watching!

The Pre-Approval Process

Thanks for joining me today! We have a competitive market. Homes are getting multiple bids; so how do you make your offer stand out?

The most important factor when you place your bid is to be preapproved. Keep in mind this is different from a prequalification. Preapproval means a lender has verified your employment history, income, credit and assets. Your preapproval will determine how much you can spend on a home and will speed-up your application process when you have found the home of your dreams.

There are three main elements a lender will look at during the loan process. They will first check your confirm your employment to verify a stable history and likelihood of continuance. They also want to know what kind of down payment you can make and where the funds will be coming from. Thirdly, they’ll check your credit. Do you pay your bills on time?

It today’s market, it is essential to stand out from other potential buyers. The best way to stand out is with a strong offer backed by a mortgage preapproval. Before you make an offer on any property, get preapproved. Sellers will not take you seriously otherwise and you may lose the home.
If you have any questions, please give me a call!

How are the interest rates in the current real estate market?

Hey, everyone! Thanks for joining me today!

I’m sure you’ve all heard about the increasing interest rates and there is a lot of confusion as to what drives the rates. A lot of people have been asking me why the recent spike.

Our market is full of uncertainty: is recovery really happening, is unemployment as good as it seems, etc. Numbers can be skewed.

Take for instance how the uncertainty of these numbers can affect the market. The reports of lower unemployment rates each month have been driving interest rates higher. However, when considering the unemployment rate, 70 percent of that statistic is part time. The more uncertain those factors are, the more volatility you will see in interest rates.

Thanks for watching! If you have any questions, please give me a call. I’d love to help!

What's Going on in the FHA Market?

Hi everyone. Thanks for joining me again. I wanted to better explain some of the recent changes to the FHA mortgage program and how the changes to the mortgage insurance factor will affect you monthly and moving forward.

As of June 3, the Federal Housing Administration changed its cancellation policy for the annual mortgage insurance premiums. Any new FHA loan has an increase in the monthly mortgage insurance by about 10 basis points. This means for every $100,000, it’s going to cost you $8 more a month.

The biggest difference now is that if you put 5% down or less, you now have mortgage insurance for the entire life of the loan. It used to be that it was gone after 78% was paid and payment has been made for five years.

So, if you have a $200,000 loan, you’re going to be paying about $13,500 of mortgage insurance over five years. Now, with having it for the full life of the loan you pay $81,000 over those 30 years. If you put 10% or more down, you will have 11 years of monthly insurance which is about $28,600.

While these changes are certainly significant, FHA is still a competitive financing option for homebuyers today. Low down payment options, low credit score requirements and higher limits for gift funds and seller concessions are a few of the main benefits that a FHA loan offers.

A FHA loan is one of many financing options available today – including those with no mortgage insurance at all. If you or any of your clients are in the market to buy or purchase a home – don’t rule out FHA right away. Call me and I would be more than happy to compare program options,  rates, and payments to determine what would best meet your needs.

What's Happening with the Rising Interest Rates?

Welcome back to my video blog!

Everyone is up in arms about the rising interest rates! People want to know how it will affect them and their monthly payment.

Let me just put everyone at ease and explain the effect of rising interest rates.

About 6-7 months ago, interest rates were at an all-time low at about 3.5%. Today, they have spiked to around 4.5%. Now, if you have a $200,000 loan for thirty years your payment went up from $895 a month to $1,009 a month; that’s a $114 difference.

The median household income is $51,400. The increase in rates is a 3% difference to your debt-to-income ratio. Will this affect you? It’s not a huge impact, but it can alter your loan amount and down payment.

The market is still great! As home prices begin to increase, now is the time to buy and sell so give me a call at 215.591.0222 x 1630

Don’t Miss Out on Record-Low Rates

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I've gotten a lot of questions lately about what interest rates will do in 2013.  People want to know if the government will keep rates low.  It really depends.  What happening with the economy, the unemployment rate, how bonds are being sold and purchased on the market, home sales prices, how long homes are on the market, and consumer confidence all go into the equation.  As you can see, there are a lot of moving pieces.

Another factor we look at is jobless claims.  Although jobless claims were down, we should wait until March to analyze this number because it could be skewed due to companies hiring for the holidays.  We really can’t get a feel for where the unemployment rate is until spring.

The real estate market; however, is ticking back up.  From 2011 to 2012, the average home sale price is up 11.5%.  This is a big number.  Of course, different pieces factored into this increase with investors coming in to buy foreclosures, distressed properties and short sales. Since there was more demand for rentals, the cost of rent went up. An investor can buy a rental for $150,000 and rent it for $1,800 a month. Beyond investors, first- and second-time home buyers also came into play to increase home sales, so the bottom line is consumer confidence in the market is up.
 
We had this type of confidence in the market in 2009 due to the homebuyer tax credit but we no longer have this incentive.  Now we have a different incentive—record-low interest rates.  It’s definitely time to take advantage of the low interest rates whether it’s to refinance or purchase a new home because we don’t know how long they’ll be as low as they are.
 
Don’t miss my next blog when I’ll introduce you to a product you can take advantage of to get you into your first or next property.
  
If you have any questions, please contact me at jmoderski@gatewayfunding.com or 215.591.0222 x1630.  I’d be happy to assist.

Happy Holidays and Warm Season’s Greetings!

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To all our friends, neighbors, family and clients – we are so proud to have been able to work with you and be a part of your lives! As we end this year and turn our focus to 2013, we just wanted to take a moment to thank you for all that you bring to our lives.

We have some exciting plans in the coming year and hope to bring more success to all your real estate endeavors. With each transaction that makes it to the closing table in the coming months and years ahead – we know that new and exciting things will continue to follow for all of us.

On behalf of the entire group – Happy Holidays, Season’s Greetings, Peace and Joy!