Tag Archives: Rent. vs. Buy

Proof That Buying a Home is Smarter Than Renting

Home buying

If you rent a home in Las Vegas, you probably located that home through the usual methods. Checking online ads, driving neighborhoods, scanning through Zillow, Trulia, and other similar sites to find one that works for you. Or perhaps just to find one at all – since rental homes in Las Vegas are in high competition, and each one usually has multiple applicants.

“During that process, you probably couldn’t help but notice (especially on the real estate sites) the estimated value of those homes, or how much they last sold for,” explains Rick Piette of Premier Mortgage Lending. “Those well-placed ‘home financing’ ads caught your eye, and somewhere along the line you started thinking, “Jeez – the mortgage payment would be less than the rent!”

“And therein lies the point. In fact, we’re not telling you anything you don’t already know – because it’s no secret that owning a home is infinitely better than renting, for many reasons. Not only stability and security for your family, but financial benefits, equity building, and more, Piette continues. “Keep in mind, too, landlords wouldn’t be very smart if they rented their properties for less than their mortgage payments, would they?

“So, what is it that stops most people from home buying – when all indications are that it’s the smarter decision? In almost every case, it’s fear,” explains Piette. “Fear that they don’t have the down payment saved up, fear that they won’t qualify for a mortgage loan – or both. But as a FDR once reminded us, “We have nothing to fear but fear itself.” And that’s true- especially when it comes to getting a mortgage loan.”

“That’s why I’m excited to share the news about Premier Mortgage Lending’s new 1% Down Loan Program. This loan is helping many people who shared those fears leave the uncertainty and high cost of renting behind to step into a home of their own – and it’s simply life-changing,” Piette reveals.

How does this new “Conventional One Percent Down with Equity Boost” loan work?

• Requires only 1% of the purchase price as a down payment.
• No savings? No problem. This 1% down payment can be in the form of a gift from a family member.
• The Lender adds another 2% down on your home on your behalf. (You’ll instantly have 3% equity in your home at closing.)
• It falls under our true “No Fees” program.
• 30-year, fixed rate loan.

“To be honest, even I wasn’t sure if this loan was as good as it seemed – until I started helping our borrowers use it to buy a home. And I can confirm that it’s every bit what it promises,” adds Piette. “Our 1% Down Loan is really having an impact for Las Vegas homebuyers – making the expensive (and non-recoupable) costs of renting a thing of their past.

“If saving up for a 5, 10, or 20% down payment has been your biggest hurdle to buying a home – then we need to talk. Because you have the power to change your life and start building financial freedom, and Premier Mortgage is here to help make that happen,” Piette assures.

To find out more about how Premier Mortgage may just be the best thing to happen to homebuyers in years – visit www.1percentloan.com for more details and see if you may qualify for our true 1% Down Loan Program. Then call us to find out more at 702.485.6600.

Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas, Henderson, and Boulder City Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.

3 Things That Can Stop You From Getting A Mortgage Loan – And How To Change Them

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The American Dream of owning a home is alive and well. And while it’s true that some of the rules for getting a mortgage loan have recently changed, every month thousands of families enjoy the excitement and extraordinary pride of becoming a homeowner – whether again or for the first time.

And you just might be one of them – if you play your cards right. (Your “credit cards,” that is.) Because homebuyers who plan ahead can take steps to improve the odds that their application receives the coveted “Your Loan Is Approved!” stamp. (Instead of that nasty alternative.)

Of course, lenders will still be looking at your finances to reach that final determination. But by making changes today in your spending behavior, you can make a huge impact on your future home-buying opportunities. It might not happen as quickly as tomorrow, but continually making small improvements and heading in the right direction with your credit and debt will make a difference to your lender.

According to Rick Piette, owner of Premier Mortgage Lending in Las Vegas, Nevada, “There are three key areas that those planning to buy a home in the near future should concentrate on immediately. These are: your credit history, how you handle your debt, and making the effort to educate yourself about mortgage loans.”

Having a Poor Credit Score and Credit History

Getting your credit in order is vital – because poor credit can mean you’ll pay more for that mortgage you get. Or worse yet – your application could be denied because your credit score is too low.

There’s no doubt about it, in this day and age, good credit makes the rules. In fact, it’s been calculated that over a lifetime, a person with poor credit could end up paying nearly $200,000 more for the same purchases over someone with good credit – simply due to the differences in costs and interest charges.

But even if life has thrown you some curve balls (such as, oh, maybe a Great Recession) – if you take calculated steps to get back on track with your money, it will begin to show up on your credit report and score with steady improvement. These include:

• If you have any collections or judgments against you, paying them off as quickly as possible.

• Bringing your over-the-limit and past-due accounts up-to-date.

• Paying all your bills on time.

• Reducing your credit card debt to 25% or less of your credit line on each card.

• Not opening new lines of credit.

• Not closing any credit card accounts, because then you’ll be using a higher percentage of your overall credit limit.

If your credit has hit some bumps, it’s always wise to speak with a mortgage lender about your situation before shopping for a home. A reputable firm will be happy to recommend specific actions you can take with regard to your personal credit status – such as which cards to pay off if you can, and in what order to tackle your debt reduction. They can also help you understand the different type of loan programs available to you and what credit scores you will need to achieve for them.

In short – if buying a home is on your list of Things-To-Do now or in the future, get your credit checked, speak with a lender, and then take the right action to start improving it now.

Carrying Too Much Monthly Debt

Your Income + Too Much Debt = No Home For You.

Debt-to-Income Ratio – that’s an important thing to know about when you’re planning to buy a home. (That’s your monthly income divided by your monthly debt payments.) And if those percentages aren’t right, your loan can be denied.

How to fix it?

“Obviously, you want to reduce your debt,” confirms Rick Piette. “Unless you’ve hit the lottery, this probably isn’t going to happen overnight. But by formulating a plan of how to attack your debt- in ways that will make the most difference to your ratios – you can begin to turn these figures around.”

“However, as Michael F. Kay explains in his recent Forbes column, Digging Yourself Out of Debt – without changing how you think of debt, the odds are you’re not going to change your spending habits. (The old maxim really does apply here: If nothing changes, nothing changes.)

In many cases, that mindset can be altered simply by changing what you focus on before making a purchase. Instead of concentrating on momentary gratification (as in, “The Super Bowl is going to look great on this 55-inch television!”) – think about how you’re going to feel when the bill arrives. In truth, it really can be as simple as that. When it comes to money, many people need to shift their perceptions about how society has conditioned us to behave.

“Kay goes on to offer several other techniques that help to re-train our thoughts on how we spend money,” adds Piette. “Reminding yourself of the long-term goals you’ve set and asking whether an expenditure will help or hinder your ability to achieve them is one. Kay recommends ‘visualizing’ where you want to be (in a home of your own and building wealth) vs. where you don’t want to be (renting an apartment and paying huge credit card bills each month).

You’re Not Asking The Right People The Right Questions

“You don’t know if you’re able to qualify for a mortgage, so keep that to yourself and don’t make any inquiries.”

WRONG!

If you have dreams of owning a home someday, then take your questions to a professional – whether it’s a Realtor, mortgage lender, or another industry expert. Even if you’ve never bought a home before, or you’ve lost your home to foreclosure or short sale – don’t simply assume that you’re not qualified to get a mortgage. Remember: Every person’s financial situation is unique, and because of differing circumstances – what was a complication for one person may not affect someone else.

“This is one of the most common problems we run into, and it’s really a shame,” reports Piette. “Because more people are qualified now to get a mortgage loan than they realize. As we’ve mentioned in a previous article, studies show that over half the people who want to buy a home never even ask if they’ll qualify for a loan simply out of fear the answer will be “no. ” And a large percentage of those people actually are able to qualify.

“What’s important to remember, though, is that even if the answer is “no” right now – by taking an active role to improve your credit and financial stability, you’ll have the opportunity to change that to a “yes,” – and in many cases, not too far down the road.

“At Premier Mortgage, we believe it’s so important for people to know the right questions to ask about getting a mortgage loan, we created an educational series known as “Home Loans 101” to help take the mystery out of mortgages. It helps buyers understand what to ask, and gives them the chance to compare lenders equally.

“A common misconception we run into is that people often think the cost of getting a mortgage loan is the same with any lender – and that is not at all true. There’s a difference between Banks, Mortgage Bankers, and Mortgage Lenders – and unless buyers shop around for the best deal, they can end up paying thousands of dollars too much for their mortgage loan. Those costs alone can make the difference in receiving a loan approval – or a loan denial.

“That’s why buyers need to discover the facts for themselves. Just as different people have different financial circumstances, different lenders will have different loan programs. Some of those programs can price you out of being able to buy a home,” Piette confirms. “But at Premier Mortgage – home of the true “No Fee” loan – we’re making it possible every day for Las Vegans to get into a home of their own. That could include you, too. What do you have to lose by asking?”

Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas and Boulder City Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.

Is Now The Right Time To Buy?

Sold Home For Sale Sign in Front of New Houses

Deciding when the right time is to buy a home is a tricky thing. Or sometimes not. In truth, for many people the timing is determined by their current life situation. Let’s face it, if you just had new twins join your household, that 1-bedroom apartment simply isn’t going to cut it any longer.

But for most people, listening to all the chatter out there about when you should try to sell your existing home to buy a new one that’s better suited to your needs can be confusing at best. At worst, it feels a bit like trying to follow advice about investing in the stock market: All the so-called “experts” seem to have polar opposite opinions about how and when it should be done. When the truth is, no one has come up with a ‘sure-thing’ (or we wouldn’t be here writing this article, would we?).

“The fact is, there’s no single answer that’s right for everyone,” points out Rick Piette, owner of Premier Mortgage Lending. “Every situation is different, everyone has their own set of circumstances to consider. But there are a few checkpoints to keep in mind on the way to your decision, and we’d like to point out three of them to help you determine when is the right time for you to make the leap into buying a home.”

What If You’ve Had A Short Sale or Foreclosure?

“This is perhaps one of the most important questions we hear, especially these days,” reports Piette. “So many experienced financial hardships when the recession hit that losing a home to a foreclosure or short sale became much more common than it had been in the past.

“What many people don’t realize is that although there are enforced waiting periods of several years to get another government-insured mortgage loan – there are other options available that can help you get back into a home of your own as early as 1 day after those events. Here in Las Vegas, we created Another Chance Nevada just for that purpose – because we saw a need to help families get back into their own homes, and we wanted to help. With several loan programs and private money financing available, we’ve helped hundreds of locals become homeowners again. Plus, with our Another Chance Nevada loans, there are no pre-payment penalties – so when credit has been restored, owners are able to refinance to a more traditional mortgage loan to save even more.

Do I Buy When The Market is Hot, Cold, or Holding?

“The good news is that across the country, the housing market has made gains since the crisis and has pretty much returned to a stable footing,” states Piette. “As always, some markets are ‘hotter’ than others – often simply due to supply and demand. Others see rising job opportunities and populations that increase competition and prices. And if you should find yourself in a transition to a new area, it’s often wise to rent first to make sure you find the neighborhood that appeals to you most.

“But for those who know their city and plan to stay put for 5 years or more, buying a home is almost always going to be the best option. Here in Las Vegas especially – where rents are nearly twice the cost of a mortgage payment for the same property – it just makes more sense to invest in yourself, rather than your landlord.

“Real estate in Las Vegas has pretty much returned to normal, which is a great thing,” Piette continues.” There’s now the typical ebb and flow of values that naturally occur over time, and no indication of another ‘bubble’ on the horizon. In fact, prices that have been steadily climbing over the past 3-4 years are cooling slightly, showing that the cost of homes is leveling off. Right now, it’s neither a Seller’s nor a Buyer’s market – which pretty much puts everyone on a level playing field.

What About My Credit and Finances?

“There’s no doubt about it – the state of your credit score and finances are critical when it comes to buying a home,” states Piette. “It can be the difference between loan approval and denial, and also affect how much that new home is going to cost you over time. Simply put, someone with a good credit history will pay less for a home over the 30-year term of a loan because of a more favorable interest rate, than one with a poor credit score. By as much as $100,000 or more.

The good news? Interest rates are still at historic lows – although there’s reason to believe with recent jobs data reports that the Fed may begin raising those rates soon. Plus, the upcoming Presidential election may also play a role in interest rate fluctuation.

“Surprisingly, surveys have shown that almost 50% of potential buyers simply assume they won’t qualify for a traditional mortgage loan, so they don’t even apply. But the truth is, many of them will (at Premier Mortgage, we make it happen all the time.) But even if a traditional loan isn’t available to them right now, getting a non-traditional loan at a slightly higher interest rate helps build their credit back up so they can refinance to qualify for a lower rate in the near future.

“One other thing that many buyers aren’t aware of is that the regulatory changes in the mortgage industry have been made in favor of the consumer. More transparency, clearer disclosures are two of them. And buyers are learning that shopping around for the right mortgage is one of the easiest ways to save money – a lot of it. For example, as a mortgage broker, Premier Mortgage Lending is able to offer clients a true No Fee loan. That means no loan origination, document fees, or other junk costs that banks and mortgage bankers will often add onto your Loan Estimate. It can be a savings of literally thousands of dollars – and one that can tip the scales in your favor so you receive that “Great news! Your loan is approved!” phone call. (Visit our KnowBeforeYouOweNevada.com website to learn more.)

“When you put these elements together – a level real estate market, current low interest rates that are projected to rise, and the cost of owning being considerably less than renting – it’s a pretty safe bet that Las Vegas is currently a prime market to buy into right now,” Piette reveals. “Our company is proud to be playing a big role in helping Nevadans get back into a home of their own. It’s about time, don’t you agree?”

Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas and Boulder City Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.

With Home Sales On The Rise – Are You Prepared?

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It’s news you’re hearing a lot these days. Home sales are starting to heat up across the country. From the Wall Street Journal to Bloomberg – and from many other sources who track the condition of the housing market in the U.S. Home sales, prices and demand has risen sharply in the past couple of months.

If you’ve been postponing your decision to buy a home until “the time is right,” these latest statistics indicate it could be exactly that moment. With the price of homes inching upwards – along with projected interest rate increases – waiting too long can mean a difference of tens of thousands of dollars. And that is money that we know you’d rather keep in your own pocket. Whether you’re a first-time homebuyer, moving up, down, or returning to homeownership again – the answer to the following questions will help you start to determine if you’re prepared to make the leap.

Have You Chatted Up You Credit Lately?

Seems like you can’t change the TV channel anymore without hearing about all the free credit scores that are out there just for the taking. The truth is, of course, “free” is a relative term. (Some of those free credit scores may not cost you cash out of pocket, but they often make up for that by requesting you give up your privacy. Information is money these days, after all.)

The better way to get a free score – if you’re seriously in the market to buy a home – is to apply for a pre-qualification with a mortgage lender. Then be sure to ask them to give you a copy of your entire credit report. There may be errors in there that affect your credit score, and if so, now’s the time to fix them. Such corrections can save you a lot of money in interest expense not only on a mortgage loan, but for many other purchases you make. (It’s been estimated that upwards of 25% of credit reports include errors – so it’s worth checking out.)

But regardless of where you get your credit score, you need to know what that magic number is. It will help you determine if you’re eligible for a mortgage loan – and if so, what type and at what interest rate. Keep in mind though, a pre-qualification letter from a lender is not a commitment to make your loan. It simply indicates based on the information you provide, and under those circumstances, you should be able to qualify for one. Just remember that if your credit score is on your side, you’ll still want to shop around for the best and most affordable loan option.

How Much Home Can You Afford?

Just won MegaBucks? Congrats! You can buy whatever home you choose, cash on the barrel. But if you’re like most people, you’re going to need a mortgage loan. The good news is that rates are still low, which makes qualifying for a loan more affordable and budget-friendly. And it can also mean the difference between buying a home you like, and living in the neighborhood you love. (For example, at 4% interest – a mortgage loan for $250,000 costs less than $250/month more than a loan for $200,000.)

The most important thing is to determine your mortgage limits before you start shopping for a home. That way, you’re less likely to overextend your finances because you fall in love with a home that’s not right for your finances. Getting a pre-qualification letter from a mortgage lender is a start – but rates, fees and costs can vary tremendously from one lender to another and can easily swing the final answer from “denied” to “approved.”

Also, due to changes to lending regulations, you may be better off working with a mortgage broker (who can shop around for the best deal with multiple lenders) – rather than going straight to your bank (who normally offers only their own loan products). (FYI-Premier Mortgage Lending is a mortgage broker, and even better, we specialize in No Fee Loans. )

What’s Your Five-Year Plan?

It might seem like a no-brainer to own a home if the mortgage payment would be substantially less than your rent amount. But when you buy a home, you should know that you’re going to live there for at least the next five years. Why? Because the own-vs.-rent cost comparison doesn’t take into account the other costs of homeownership, such as maintenance, repairs, and mortgage-related fees. (Spoiler Alert: Premier Mortgage’s No-Fee Loans actually tip those scales in your favor.) But if your employment is secure and you’re looking to put down roots, then add this to your “+” column as a good reason to own.

Of course, the answers to these three questions are just the start. If all indicators point towards “Let’s find our new home, honey!” – there will be many more to follow. Just remember you don’t have to do it alone. Your Realtor and mortgage lender are there to help you navigate your way from “We love it!” to “We own it!” Happy home shopping!

Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas and Boulder City Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.

Trends Converge Illustrating Home Ownership Is On The Rise

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It’s not uncommon to find conflicting stories about current trends in the U.S. that pertain to the status quo of home ownership. Since the housing market collapse in 2008, it’s as if everyone suddenly acquired their own ‘crystal ball’ – claiming to know when, or how or where to make your next move into real estate.

But now, enough time has passed to allow us to view things in perspective. Actual data replaces “best guesses” and reveals real economic, geographic, and demographic statistics as they affect (and reflect) the state of the U.S. housing market. Plus, studies conducted by industry leaders have been implemented and tracked over time to help us determine how best to serve the homebuyers of the future.

Right now, there are several trends that indicate our industry is on the verge of a new upswing, for several different reasons.

Home Sales in 2015 Expected To Be At Highest Point Since 2006 This growth projection by the National Association of Realtors is driven by the combination of strong job growth, low interest rates and a gradual loosening of lending standards. Early results this year indicate that buyers who have been kept out of the market by those restrictions are beginning to return, and it is anticipated that 2015 will be the first time since 2008 that single-family home starts will exceed apartment starts.

Did you know? In most markets, the cost of renting is roughly twice the cost of owning a home. In reality – people have to live somewhere – whether they own their residence or not. And many are now realizing that it just makes more financial sense to buy than to keep renting.

The Future Plans For Most Millennials Include Home Ownership. Millennials, or “Generation Y” – whatever the popular term you use to describe them (maybe it’s even “son” or “daughter” in your case), they’re big numbers in our society. Approximately 80 million in the U.S. alone meet this demographic description, generally acknowledged to be those between 19-36 years of age today. And according to a recent study by the Urban Land Institute, this group is poised to begin moving into the home buyer’s market in droves – an estimated 70% are planning to do so within the next 5 years. And that’s a whole bunch of first-time homebuyers entering the marketplace.

Department of Commerce data shows that in 2014, more millennials moved from the city to the suburbs, a significant change for a trend that has historically operated in reverse. And this is a generation that faced a host of new challenges: mounting student debt, stricter mortgage qualification standards, and until the past year, weak job and wage growth. It’s becoming clear that these hurdles may delay the step, but ultimately, they want to own homes of their own for reasons that will sound very familiar: marriage, starting families of their own, or even simply this: “I want a yard.”

Financial Regulations Continue To Evolve In Favor of Consumers. As we have reported before, the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act has brought sweeping changes to the home mortgage industry – and additional regulations continue to go into effect as the calendar progresses. In addition to laws that now limit the fees able to be collected from buyers by mortgage brokers (although the same does not apply to banks or mortgage bankers) – this fall is scheduled to see new rules go into in effect with regard to documentation, Good Faith Estimates, and advance disclosures prior to close of escrow regarding your mortgage loan’s terms (translation: No more surprises for consumers.)

Buyers Have More – and More Affordable Options – For Home Mortgages. Gone are the days when banks and mortgage bankers held all the cards for buyers when it came to obtaining a home loan. In the lending industry – as in every other area of consumer spending today – buyers are more in control of their mortgage destiny than ever before. Shopping for the best interest rates and the lowest costs for a new loan can yield tremendous savings for home buyers that still comes as a shock to many (the ones that are used to ‘the old ways’). One example: Premier Mortgage’s clients literally save thousands of dollars in cash-out-of-pocket at close of escrow using our popular “No Fee Loans.” “The ability for consumers to close a home loan and pay absolutely no lender fees is a huge plus for homebuyers,” says Rick Piette, owner of Premier Mortgage Lending.

These are just a few of the recent reports hitting the newsstands these days, and taken collectively, it all points to the fact that for consumers, the “home buying playing field” is finally leveling off. That just might make now the best time in a long time to plan on moving into a home of your own.

Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas and Boulder City Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.

Time Is On The Side Of Home Ownership

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If there is only one maxim that is true for virtually every business, it’s that “Time Marches On.” For industry, that means planning ahead – whether it’s for the ‘next big thing’ or the needs of the next generation. For the U.S. home market, the passage of time actually provides a two-fold benefit.

First, it will ultimately bring the 20-somethings of today into the realm of renter, and then potential future homeowner. Second, it is giving previous homeowners the opportunity to rebuild their credit and finances, then re-enter the housing market.

According to 1st quarter 2015 Commerce Department statistics, the growth of total renting households in the U.S. is rising significantly – up by 1.8 million in the past year. And while homeownership has actually dropped in that same period by 386,000 – those figures still represent societal upheavals in residential living arrangements.

In short, the teens of the 2007/2008 housing market crash are now grown up and entering new life phases. With their educations completed, this generation will, in many ways, follow the natural course of events: career, marriage, and family. As their household needs continue to grow, the availability of suitable rental properties will shrink, even as the cost for those rentals will rise. (A trend that’s already occurring.) Ultimately, these facts, combined with low mortgage interest rates and recovering job markets, will make the prospect of home ownership not only emotionally appealing, but a wise financial move, as well. (According to a recent Zillow report, renting is now twice as expensive as buying.)

And while homeownership has yet to return to pre-recession rates, “time” is also on the side of those homeowners who struggled with foreclosures during that period. Because time, along with financial planning, are what it takes to rebuild credit and accumulate down payment funds. Many former homeowners have used that time wisely to rebuild and recoup, and are now beginning to venture back into the home buying market.

Fortunately for both groups – first-time and returning home buyers – the playing field for mortgage lending has been leveled in the interim by the reform provided through the Dodd-Frank Wall Street Reform and Consumer Protection Act. Which means that the increased availability of mortgage financing is now offering one more helping hand to the U.S. real estate market.

However, it’s important for buyers to remember that no two mortgage loans will cost the same. In fact, if you sought financing through a traditional banking institution or a mortgage banker and were denied, it’s possible that the very costs of obtaining that mortgage may have played a role in having your loan turned down.

As a mortgage broker, Premier Mortgage Lending offers several loan opportunities for home buyers – including “Second Chance” and “No-Fee” mortgages. The first helps those who have been turned down previously with private money lending; while our “No-Fee” mortgage loans literally cost buyers $0. No origination fees, no junk fees – and that translates to less cash out-of-pocket, lower APRs, and more home for your money.

If you’re not sure about your ability to qualify for a mortgage loan, isn’t it better to find out what your options are? For additional information or to schedule an appointment for mortgage prequalification or refinancing, call Premier Mortgage Lending at 702-485-6600 or visit premiermortgagelending.com.

Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas and Boulder City Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.

Association of Realtors pushing for clarification on robosigning

While AB 284 tops the Association of Realtors’ agenda for the legislative session, association officials recently told VEGAS INC that the law has not been nearly as destructive as many people think. They said foreclosures are falling for a number of reasons, including the improved economy and last spring’s $25 billion National Mortgage Settlement between the nation’s five largest mortgage service companies, a coalition of federal agencies and 49 state attorneys general.

According to Vegas Inc., one in every 37 housing units in Nevada received a foreclosure notice last year, down from 2011. The National Mortgage Settlement provides that banks must offer homeowner relief and refinance underwater borrowers. Foreclosures are down because after the Settlement, banks now have little incentive to foreclose due to credits given for short sales and principal reductions, not foreclosures. Read the article here.

Premier Mortgage Lending offers Second Chance financing to Nevada homeowners even to those with a recent history of foreclosure or short sale. Call for details: 702-485-6600

Mortgage Forgiveness Debt Relief Act, Another Chance Nevada assist after short sales

Part of Washington’s bipartisan agreement to avert the “Fiscal Cliff” on Jan. 1 is the extension of a tax break that will make Southern Nevadans who are considering a short sale or foreclosure breathe a little easier — the Mortgage Forgiveness Debt Relief Act.

“Extending the Mortgage Forgiveness Debt Relief Act is so extremely important for Southern Nevadans who need to sell their homes but are underwater on their mortgages, and are either considering a short sale or in the process of one. Because of its extension, qualified homeowners who have to unfortunately leave their homes due to a short sale in 2013 will not have to pay taxes on their misfortunate and can avoid further financial loss,” said longtime Las Vegan and mortgage professional Rick Piette, owner of Premier Mortgage Lending.

First signed into law in 2007 and now scheduled to expire Dec. 31, the act exempts most homeowners who complete a short sale or experience a foreclosure on their principal residence from having to pay federal taxes on the cancelled balance of their mortgages of up to $2 million (or $1 million if filing separately). Borrowers who receive partial loan forgiveness from lenders may also benefit from this exemption. Without the exemption, debt that is forgiven or cancelled by a lender is normally considered income by the Internal Revenue Service and may be taxable.

“This act’s extension is big news for Southern Nevada because there are thousands of homes with delinquent mortgages. As banks move forward on these delinquencies in 2013, homeowners who have been trying to figure out their options may finally decide to move forward with a short sale. In 2012, thousands of Southern Nevadans were able to avoid taxes on the forgiven debt of a short sale and now thousands more will do the same in 2013,” Piette said, citing statistics released last week by the Greater Las Vegas Association of Realtors that showed short sales accounting for a record 45.8 percent of the 2,961 homes sold in December 2012, and foreclosures dropping to 9.5 percent of all sales.

“Deciding whether to proceed with a short sale is a very personal decision with many, many considerations. One thing that people need to figure out is where they are going to live next. Many people are surprised to learn that there are private lending programs out there that can help them buy another home as soon as a day after a short sale, including our Another Chance Nevada loan program,” Piette said.

The program connects individuals who have experienced a short sale or foreclosure with private and institutional portfolio lenders who offer 15- or 30-year, fixed-rate loans at interest rates that are typically higher than traditional mortgage rates. Full-documentation guidelines are followed and at least a 20 percent down payment is required. The down payment can come from personal funds or can be obtained as a gift from family members. Borrowers may close within 30 days from the time of loan approval, and may refinance the loan at any time without penalty.

Among the dozens of Realtors whose clients secured a home loan through the program in 2012 is Bret Runion. The owner of Desert Sun Realty said that the program provides residents not only more choices of where to live, but also the opportunity to begin re-building equity.

“Some of these folks who have experienced a short sale or foreclosure think that their futures are sealed and that they must rent, and the Another Chance Nevada program lets these buyers take advantage of today’s great housing prices. We help them get back into the market and to begin to recoup their losses,” Runion said.

In 2012, hundreds of Southern Nevadans purchased a re-sale or new home with an Another Chance loan. The Las Vegas-based lender is currently working with Beazer Homes, D.R. Horton, Dunhill Homes, Harmony Homes, KB Home, Pardee Homes, Pulte Homes and Del Webb, Richmond American Homes, Ryland Homes, and William Lyon Homes.

“Another Chance Nevada is helping stabilize the Southern Nevada real estate market by generating more buyers. We currently have more buyers than sellers. This is why the prices have consistently gone up for the past several months. Another Chance Nevada buyers are also owner-occupants. This helps stabilize the neighborhoods,” Runion said.

“We are very confident that the Las Vegas realty market is moving in the right direction, and in the next five to 10 years we see a tremendous amount of appreciation potential. Tremendous. If you are not able to participate and own real estate, you are not able to take advantage of that.”

According to both Runion and Piette, the first step that individuals interested in buying a home should take is to participate in the mortgage pre-qualification process. As a full-service lender, Premier Mortgage Lending provides clients of Desert Sun Realty, as well as others, complimentary mortgage pre-qualification to help them determine if they may qualify for a traditional mortgage or Another Chance Nevada.

For additional information or to schedule an appointment for mortgage pre-qualification, call Premier Mortgage at 485-6600 or visit www.AnotherChanceNevada.com.

Premier Mortgage Lending (NMLS 393282) is located at 8689 W. Sahara Ave., Suite 100, Las Vegas, 89117 and is a member of the Las Vegas Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.

Should you rent or buy after short sale or foreclosure?

New programs now make it possible to purchase a home immediately after experiencing a foreclosure or short sale. Among those is the Another Chance Nevada program offered by Las Vegas-based Premier Mortgage Lending.

According to Rick Piette of Premier Mortgage Lending, making this decision is highly personal with no one-size-fits-all answer.

“Although most Americans prefer homeownership, it is not for everyone. If you move around frequently, or if you can’t put together the 20 percent down payment that is required for ‘second chance’ financing, you may be better off renting,” Piette said. “However, when you are renting a property, you are waving goodbye to your money each month. Renting a home does not provide the tax advantages to the renter, as any and all tax advantages and potential go to the landlord.”

The Another Chance Nevada program opens up the door to homeownership to those with a recent short sale or foreclosure. Since its introduction last year, the program has garnered the interest of Southern Nevadans who prefer to buy rather than rent after personal financial challenges.

“Even though rates and fees through the program are typically higher than for a traditional loan, the numbers and lifestyle considerations make sense for many,” Piette said.

He encourages potential buyers to do their research and ask themselves two questions:

*Is it financially better to rent or buy?

*Where do I stand in comparing the numbers of my new home to the numbers from my old home?

According to Piette, when evaluating the rent versus buy scenario for homes in different parts of the valley and at various price ranges, he discovered that it can be better off financially to buy a home. For example, he said that one would save over $21,000 in five years in purchasing a $135,000 home in the northern valley instead of renting it, and a similar savings of nearly $20,000 in buying a $210,000 home in the Summerlin area.

“We recently took a look at several of our actual Second Chance buyers to see how their numbers compared to our research. The results were staggering. In just five actual examples, our borrowers moved into similar-sized homes and dropped both the principal owed and mortgage payments in half. With the huge drop in home prices over the last few years, it’s easy to understand how this can happen,” Piette said. “While second chance financing may not work for everyone, it is the right choice for many.”

When deciding whether buying or renting a home is best for their personal situation, Piette encourages potential home buyers to complete mortgage pre-qualification, a service that Premier Mortgage Lending offers for free.

Through the Another Chance program, private and institutional portfolio lenders offer home loans following full-documentation underwriting guidelines. These 15- or 30-year, fixed-rate loans carry interest rates that are typically higher than traditional mortgage rates, and require at least a 20 percent down payment. Borrowers may close within 30 days from the time of loan approval. Borrowers may refinance the loan at any time without penalty.

The lender is currently working with Beazer Homes, D.R. Horton, Dunhill Homes, Harmony Homes, KB Home, Pardee Homes, Pulte Homes and Del Webb, Richmond American Homes, Ryland Homes, and William Lyon Homes.

As a full-service lender, Premier Mortgage Lending can also connect borrowers to traditional mortgages.

For additional information or for mortgage pre-qualification, call Premier Mortgage at 485-6600 or visit www.AnotherChanceNevada.com.

Premier Mortgage Lending (NMLS 393282) is located at 8689 W. Sahara Ave., Suite 100, Las Vegas, 89117 and is a member of the Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.

Premier Mortgage Lending opens doors of homeownership through second chance financing

The decision as to whether to buy or rent a home is a personal one, entailing both financial and lifestyle considerations. For Southern Nevadans who have experienced a recent short sale or foreclosure, the prospect of homeownership may appear unattainable. However, this is not necessarily the case thanks to private lending programs such as Premier Mortgage Lending’s Another Chance Loan Program.

“For the more than 100,000 prior homeowners who have lost their home due to a foreclosure or short sale, many think that their opportunity to buy a home of their own is closed and that their only option is become a renter. For many, renting is not their only option,” said Rick Piette of Premier Mortgage Lending, a full-service mortgage provider.

“If you are among the growing group of Nevadans who has lost your home from a foreclosure or short sale, you now have a choice to buy instead of rent through Premier Mortgage Lending and our Another Chance Loan Program.”

According to Piette, the Another Chance Loan Program opens the doors to homeownership through private and institutional portfolio lenders who offer home loans following full-documentation underwriting guidelines. These 15- or 30-year, fixed-rate loans carry interest rates that are typically higher than traditional mortgage rates, and require at least a 20 percent down payment Borrowers may close within 30 days from the time of loan approval. Borrowers may refinance the loan at any time without penalty.

“Buying a home is a very personal decision that greatly impacts one’s everyday living. For some who have experienced a short sale or foreclosure, the prospect may seem a little scary, while others look forward to it because of the many advantages,” Piette said.

“Owning your own home offers the sense of community, stability and security. You can decorate and make the home however you want, according to your needs and your style, without needing permission from a landlord. Owning a home offers tax benefits and the opportunity to build equity. You can control your own housing and not worry about your lease not being extended or that the home you’re renting may go into foreclosure,” Piette said. “On the flip side, as a renter it is easier to move and you have little responsibility for home maintenance, which some people prefer.”

Piette stated that purchasing a home at today’s low prices may offer mortgage payments lower than rent.

According to Trulia’s “Rent vs. Buy Index” for December 2011-February 2012, the Las Vegas metropolitan area ranks 11th among metropolitan areas where purchasing is more affordable than renting. Meanwhile, the Greater Las Vegas Association of Realtors (GLVAR) reported the median price of single-family homes at only $127,900 in April, and the median sales price of townhomes and condominiums was $59,900.

“At these prices, it is easy to understand why your mortgage payment may actually be less than renting the same type of home, even for buyers who pay a little higher interest rate through Another Chance,” Piette said.

Piette encourages potential home buyers to meet with a mortgage specialist to become pre-qualified for a mortgage before shopping for a home. During the pre-qualification process, potential borrowers can determine the type of mortgage they may qualify, the monthly mortgage payment in which they feel comfortable paying, and ultimately how much they may spend on a home.

An Another Chance mortgage can also be used on the purchase of a brand-new home. The lender is currently working with many of the valley’s major builders, including Beazer Homes, D.R. Horton, Dunhill Homes, Harmony Homes, KB Home, Pardee Homes, Pulte Homes and Del Webb, Ryland Homes, and William Lyon Homes.

For details about Another Chance Loan Program, mortgage pre-qualification or appointments, call 485-6600 or visit www.premiermortgagelending.com or AnotherChanceNevada.com.

Premier Mortgage Lending (NMLS 393282) is located at 8689 W. Sahara Ave., Suite 100, Las Vegas, 89117 and is a member of the Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.