Fannie Mae’s HomePath Program – An Opportunity!

I want to make sure you know about a great program that’s available to homebuyers around the country. When foreclosures occur on Fannie Mae-owned properties, Fannie Mae hopes to sell those properties quickly so the community isn’t impacted too greatly. These properties are known as HomePath properties, and there are some great incentives in purchasing them. Highlights include:

• 97% conventional financing
• 3% down payment can be gifted/grant funds
• No appraisal (sale price = value)
• No PMI
• 6% seller concession allowable over 90%
• Investment property allows for higher LTVs

• 90% – 1 unit
• 80% – 2 unit
• 75% – 3-4 unit OR if financing properties 5-10

• Renovation program allows for same flexibility as standard purchase program

The bottom line is that HomePath properties offer flexibility and opportunities to save some money. So, it may be worth your time to take a look at them.

Buying a home is a big decision, but even in today’s markets great opportunities are available. If you want to learn more about HomePath opportunities in your area, call or email me anytime. I’m always happy to answer any questions you may have.

Are Your Property Taxes Too High?

Income Tax Isn’t the Only Important Tax This Time of Year

 

We may be in the middle of income tax season, but hoping you’ll be getting a refund isn’t the only thing you should be thinking about this time of year…especially if you’re a homeowner. That’s because the National Taxpayers Union (a nonprofit citizen group) estimates that between 30 and 60 percent of properties are assessed for too high of a value, resulting in an incorrectly larger property tax bill.                                                                                                                   

Taking the time to review your property tax bill could save you a nice chunk of change. And the good news is that it’s easy.

First, contact your local tax assessor’s office and ask for someone in the reassessment area. Find out when appeals are heard, and how the process for submitting a property tax appeal works. Additionally, ask for a copy of your property card. Review the card and confirm that the basic information about your property is correct. For example, is the square footage and number of rooms for your home accurate? If the number is incorrect, the county may change the assessment without a formal appeal.

If everything on the property card is correct but the assessed value still seems too high, your next step is to gather the following documentation to support an appeal. And don’t be surprised if the assessed value is lower than what you think the market value for your home is–many counties use a formula which uses a percentage of market value to determine assessed value. Ask what the formula is, because an assessment which is less than market value still might be too high.

If you have a current appraisal that supports the value being lower using recent market-value information, many counties will accept a copy of the appraisal with the appeal. If the appraisal is outdated, you can order a new one. You can also visit the local assessor’s office or search online, and look through the public records for other homes that have similar features to yours, but have lower assessments. Additionally, contact me to get in touch with a great Realtor who knows your area. This Realtor will be able to give you current market information for your neighborhood, and help you see how your market value and assessed value stacks up against your neighbors.

Submitting an appeal is generally a fairly simple process, but make sure to take the time to fill out all forms in advance and be prepared with your documentation if there is an in-person hearing that needs to take place.

Taking the time to review the accuracy of a tax bill could easily save you hundreds of dollars per year, adding up to thousands of dollars during the time you own your home. In addition, the National Taxpayers Union offers a checklist to help you appeal your assessment.

If you have any questions about your property tax bill or your mortgage, Please contact me!

What’s Labor Got to Do with It?

The Impact of the Job Market on the Housing Market

Being unemployed, under-employed, or afraid of losing a job is never easy. One of the first things many people do in these situations is batten down the hatches and minimize their spending. Certainly, the last thing on their minds is making a major purchase like a house. It’s just not a commitment that most people are willing to make when they lack confidence in their financial stability.

Although such decisions are made based on an individual’s job prospects, they have a ripple effect that impacts the broader economy, including the housing industry. Here are three key points that shed light on specific ways that the labor market influences the housing market.

Home Prices: A more secure employment market can help home prices stabilize, as fewer people are at risk of losing their homes to foreclosure. In addition, improvements in the labor market often open the door for more first-time homebuyers to join the ranks of homeowners. This can eventually help home prices improve.

Home Size: If you are running a business and need to hire someone, during a good healthy labor market you may need to entice your top pick. How will you do that? Perhaps by paying them a competitive salary. And when someone is paid a good salary, one of the things they often think about doing is purchasing a larger home.

Home Location: When the labor market is thriving, an employer may even have to lure in people who live outside the local area to take a job. This is one of the reasons housing markets are so localized. One state, city, or community might have a much better job market than a neighboring one. That’s why it’s very important to understand the labor
situation in your own state and city in order to really get a feel for the health of the housing market there.

The bottom line to remember in 2012 is that all real estate markets are local…and that means that there can be enormous variations across the country. In areas where employment is struggling, the housing market may continue to struggle as well. But employment is improving in many parts of the country, which also means the housing market in those areas will follow suit.

Staying In The Moment…

I’m not a believer in New Year’s resolutions, because most of the time they fail. I do believe in making lifestyle changes all throughout the year. One change that has been a work in progress for me the last couple of months is to stay present in the moment. It’s not easy, with all the stressors in our world today, but when I make a conscious effort to bring myself back to the present moment, things in general flow more freely and I’m happier.

One way of staying present in the moment is to plan/schedule less. If you’d like live more in a state of becoming, rather than one of rigid routine and unreliable plans:

1. Experiment with changing one routine at a time. Start small. Go a different route to work this week. Don’t watch TV for one evening. Order a different meal at the restaurant. See what happens.

2. Minimize your to-do list. Only aim to do the vital thing that needs to get done. Use the free time to be flexible.

3. If something unexpected interrupts your plan or routine, close your eyes, and consciously focus on a few breaths, in and out. Understand that no amount of anger can change the event. Accept the event, and roll with it.

4. As much as is possible, leave as many decisions about what you will do on any given day until the day itself arrives.

5. Start to embrace uncertainty. Learn to see the uncertainty as part of the adventure of life. Next time you find yourself wondering where your career will go, if you will find love or have kids, take some deep conscious breathes and allow yourself to be comfortable with “I don’t know.”

6. Remember: just because a routine is habit that doesn’t mean there are not better, more fulfilling ways of doing things.

7. Be aware that making plans for the future, is at best, a very rough guess at what will happen.

Of course, plans are necessary to an extent. But…

By focusing on being present in the moment and accepting life as it comes we get in touch with our own becoming.

By being adaptable to change we become peaceful, because change does not disturb us.

Partial contribution by Tiny Buddha.

Reminder: Changes to HARP Program Announced

See If You Can Benefit

Just a note to remind you that in October, President Obama announced plans to open up refinancing
to more homeowners who are underwater. This proposal was a revision to the current Home Affordable Refinance Program (HARP).

So what does this mean to you?

This means that if your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible to refinance your mortgage under the enhanced and expanded provisions of HARP.

You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites:

• http://www.freddiemac.com/mymortgage
• http://www.fanniemae.com/loanlookup/

Fannie Mae and Freddie Mac have recently released details regarding how these changes will be run. If you have any questions at all about what these changes mean or how they could impact you, call or email me anytime. I’m always happy to help.

What Happens To Pets After Foreclosure?

It’s hard to escape it - the economy is in the drain, the job market is not improving and foreclosures have reached an all-time high. Everyone is feeling the pinch, and none more than the multitude of animals that are being affected. Pet foreclosure victims are on the rise and rescue organizations are at their breaking points.  

Recently in the state of Tennessee a dog was found wandering the streets after his owner abandoned him due to home foreclosure.  He had been on his own so long that most of his hair was gone and his skin was infested with fleas.  Apparently, most local people simply wanted him out of the neighborhood and threw rocks and sticks at the poor dog.  Thankfully, the owner of Happy Endings animal rescue found him and after several months of treatment, he is healthy and ready to be adopted.

Fortunately, this former pet was at least turned out; many pets are being found dead or nearly dead locked in foreclosed homes.  No one denies that these are tough economic times for everyone; however leaving a defenseless animal on their own is not only irresponsible it is reprehensible.  Dogs, cats, and exotic pets are being left to fend for themselves in record numbers.  It is sad when people are forced from their homes but the fact remains when we take on responsibility for an animal that responsibility does not end.

People have the unique ability to think and reason, and when a pet owner sees that there is even a remote possibility they will no longer be able to care for their pet they should immediately begin searching for alternate care.  Let us face it foreclosures take time and in that time pet owners must find a way to make arrangements for the most vulnerable members of the household.

There are several steps people can take besides abandoning their pets.  When a person knows they are in trouble here are a few steps they can take:

• Call every friend

• Call all family members

• Place a pet on a waiting list at an animal rescue

• Take out an ad in the paper, these are usually free

• Put an ad online; Craig’s list, online newspapers, rescue organizations

Bottom line, there is no excuse for leaving an animal to fend for itself.  Not only is this cruel but it could create dangerous situations both for the animal and the community at large.

While most people cannot afford to take in every abandoned animal, many people could take in one.  Even if you are not in a position to take a pet into your home the next time you go shopping pick up a bag of pet food for your local animal shelter.  When everyone does a little, we can get a lot done and, right now, the pet foreclosure crisis is at a level that is going to require everyone to help.

5 Negative Things that Agents Say to Clients

I recently read a blog regarding negative statements that we, as sales people, say all the time but don’t realize what a negative effect it has when talking with prospects and clients and what they might be thinking when you utter these words…

“I can honestly say OR If I’m being honest with you…”
This phrase implies that you have not been honest before, but this time you’re being honest. Using these words do not build trust—so don’t EVER use this phrase, ever.

“What do we have to do to get you on the dotted line today?”
Shades of car salesmen type pressure tactics. Your clients will hesitate, tell you they’ll need to think about it, and never speak to you again. You’re better off asking if they have any additional questions or concerns before moving forward.

“I’ll try to find the answer”
Saying the word “try” does not build client confidence in you. It’s better to say, I’ll find the answer, I will let you know by tomorrow, even if I have not yet found the answer to your questions.

“It’s not my fault”
Even if it isn’t your fault, you are the only person they hired to help them through the maze of buying or selling real estate—and they are blaming you! It’s better to apologize and talk about ways to fix the problem.

“What you need to do is…”
The client is thinking, “Who are YOU telling me what I need to do?” The better approach is to say, here are several options to consider, which one do you think will work for you?

One more thing…pay attention to what people say to you that makes you crazy—because if it upsets you, saying something like this to your clients will turn them off, too.

Your Mortgage Application: What You Should Know!

Lenders evaluate the following when underwriting a mortgage for approval:

1)    INCOME – The ability to repay

2)    CREDIT – The willingness to repay

3)    COLLATERAL – What’s the value and condition of the property being financed

4)    ASSETS – for down payment and reserves after closing

1 – 3 are pretty self-explanatory, assets may be the least discussed and most important factor in loan approval.

What is meant by “assets”?

1)     Monies for down payment

2)     Monies for closing costs – lender and other third-party charges – appraisal, title etc

3)     Monies for pre-paid costs – insurance, property taxes and mortgage interest due

4)     Monies for reserves –this is what’s left over in your ‘liquid’ accounts, meaning it can be w/d immediately and w/o penalty. For any unforeseen emergency, should the need arise.

Why do lenders care about “assets”?

1)     It demonstrates the borrower’s fiscal strength. The ability to save and budget is a significant indicator of future paying habits.

2)     Where did the monies come from? Savings, gift, lottery etc.  Lenders want a clear paper trail.

3)     The borrower may have a few late payments, but have excellent cash reserves. The lender will take this into consideration as a compensating factor.

Common mistakes:

Large Deposits and Cash Deposits – Where did the money come from? Was it from a loan that requires monthly payments not reflected in the debt to income ratios?

Gift monies – While acceptable, borrowers are usually required to have at least 5% of their own monies in the bank, whether they use it or not unless there is a 20% down payment. Will the borrower be able to repay the loan?

Lenders may want to know where the money came from to pay down credit cards in order to qualify.

Big Deposit or Transfer of Funds ~ What You Need to Know If You’re Buying a Home!

You’ve probably heard the saying, “When you fail to plan, you plan to fail.” That is especially true when it comes to buying a home today. Underwriters are following strict guidelines–and that means even things like bank deposits and transfers are under scrutiny.

Here’s some insight on how underwriters analyze bank statements…and what you need to know and do (or not do) during the loan process.

Today, many banks require an explanation and proof of source of funds for any large non-payroll deposits that are listed on a bank statement. What is deemed a large deposit is largely determined by the underwriter and can be as low as a few hundred dollars. The reason for the underwriter’s concern is that an applicant may be borrowing money from individuals, or accepting money from an interested party to the transaction, to help with the settlement costs.

It’s easy to see how this bank requirement can create a lot of frustration, especially for people who are used to moving money between their accounts, which many of us do today. The key thing to remember is that anyone applying for a mortgage should avoid transferring money between accounts or making large non-payroll deposits during the home buying or selling period. While that may feel like an inconvenience, the time and headache you’ll save yourself from having to account for all your deposits will be worth it.

Let me know if you have any questions at all about this or if there’s anything I can do to help you at this time!

ACT NOW TO MAKE SURE YOU QUALIFY!

Over the last few years, the government has funded mortgages as large as $729,750 in high-cost areas throughout the country. Those loan limits were temporarily increased because the economy was struggling and many lenders would have refused to make those loans without the government covering the risk of default.

But now those loan limits are due to expire in just a few short months, on September 30, 2011. Why is this a big deal?

Mortgage rates are typically much lower when they are supplied through Fannie Mae and Freddie Mac. When these loans are no longer allowed under Fannie Mae and Freddie Mac, the loans will be considered non conforming (Jumbo) loans, and these usually have a much higher rate because they will be backed by private investors and not Fannie Mae or Freddie Mac.

The bottom line is this: If you are looking to finance a large loan through the government, you need to act quickly before those loan limits are reduced. Get in now or you could be paying higher rates.

Whether you’re a history buff or you’re interested in buying or refinancing a home, the history of 30 year fixed interest rates over the last several decades will definitely interest you. The 30 year fixed Interest rates are in one of the lowest ranges that we have seen over the past 40 years.

Call or email me if you would like more information. My goal is to create the best and most cost-efficient debt strategy for you and your family. I’m happy to answer any questions you have and do what I can to help you secure the home of your dreams.