Unlike FHA mortgages and Conventional Mortgages, maximum loan limits will remain where they are until at least the end of 2011 for VA loans. FHA and Conventional loan limits are slated to be rolled back to lower amounts as of October 1, 2011. But if you are fortunate to be eligible for a VA loan and you want to take advantage of some super low VA rates you’ll have the opportunity to do so at least until December 31, 2011.

If you are planning on using your VA eligibility to purchase a home, here are some guidelines for you to keep in mind as you prepare for the home buying process.

Check your credit – before you start your home buying journey – do yourself a favor and get your full credit report which means getting one from Trans Union, Equifax, and Experian. Make sure you get your credit scores too. With an advanced look you can head off any problems you may have with errors, poor credit, collections, low scores, and possibly identity theft. Don’t wait to see what’s under your credit hood until you have a mortgage on the line. Often credit fixes can take 6 months or more – so you’ll want to prepare your credit early.

Some some money – if you have some money in the bank, it is always a good idea to have more as you move towards home ownership. While getting a VA loan allows you to get a home with no down payment, you may have a variety of other expenses and closing costs. What money you don’t use for the down payment and closing costs you can use for move in expenses after you take ownership of the home.

Negotiation is key – if you are working with a real estate agent – and you should – make sure you negotiate for some seller assistance. Just about every seller right now in 2011 is offering some sort of seller paid incentive. You may be able to get up to at least 6% of the sales price tossed your way for the right deal. Talk to your real estate agent up front about using your VA loan benefits so they can look for homes where there is the likelihood that you could get a great seller assisted deal.

Get pre-approved first – along with checking your credit, it is a good idea and in many cases essential to get a mortgage pre-approval before you search for homes. Having a pre-approval in hand many times than not will make the difference as to whether you have a sales offer accepted or not. It is simply a bad idea to put an offer on a house in a competitive buyer’s market if you are not pre-approved. You must know what home price you qualify for as well as what kind of mortgage program you can use. This will most definitely save you time and headaches in your home buying process.

With these four tips in mind, keep your eye out for more news on VA loan limits changes if you don’t find a home over the rest of 2011. Changes may be just right around the corner so don’t wait too long if you want to purchase a slightly more expensive home using your VA loan eligibility.

Mortgage Fraud in Alabama: It Isn’t Worth It

In recent months, there has been quite a few headlines in the news regarding mortgage fraud – both right here in Alabama as well as in the national news. Because of the current housing crisis that the country is in, many people point to “mortgage fraud” as being one of the biggest reasons that we are in a crisis in the first place. And as usual, it seems that the regulatory agencies are just a little late to the party — but they have finally arrived.

From A Warning Posted on The FBI Website:

Mortgage Fraud is investigated by the Federal Bureau of Investigation and is punishable by up to 30 years in federal prison or $1,000,000 fine, or both. It is illegal for a person to make any false statement regarding income, assets, debt, or matters of identification, or to willfully overvalue any land or property, in a loan and credit application for the purpose of influencing in any way the action of a financial institution.

Some of the applicable Federal criminal statutes which may be charged in connection with Mortgage Fraud include:

• 18 U.S.C. § 1001 – Statements or entries generally
• 18 U.S.C. § 1010 – HUD and Federal Housing Administration Transactions
• 18 U.S.C. § 1014 – Loan and credit applications generally
• 18 U.S.C. § 1028 – Fraud and related activity in connection with identification documents
• 18 U.S.C. § 1341 – Frauds and swindles by Mail
• 18 U.S.C. § 1342 – Fictitious name or address
• 18 U.S.C. § 1343 – Fraud by wire
• 18 U.S.C. § 1344 – Bank Fraud
• 42 U.S.C. § 408(a) – False Social Security Number

Mortgage Fraud in Alabama: Is It Over?

Some people think that mortgage fraud doesn’t really happen anymore, but it is alive and well. Mortgage fraud is happening right here in Alabama, right now. Do everyone a favor and if you are aware of anything that may be considered mortgage fraud, be sure to let the FBI know.