84% of the general population believes that owning a home makes more sense than renting.

The Most Important Reasons to Buy a Home

When we talk about homeownership today, it seems that the financial aspects always jump to the front of the discussion. However, the study shows that the four major reasons a person buys a home have nothing to do with money. The top four reasons, in order, are:

1. It means having a good place to raise children and provide them with a good education
2. You have a physical structure where you and your family feel safe
3. It allows you to have more space for your family
4. It gives you control of what you do with your living space (renovations and updates)

The Home as an Investment

Though most people purchase a home for non-financial reasons, everyone realizes there is a money component to homeownership. Here is what they said on this issue:

• 63% of the general population believes that homeownership is a ‘safe’ investment.
• 53% believe that homeownership has more potential as an investment than any other traditional asset class.

Rent vs. Buy

We are always interested in the difference people see in renting vs. owning.

• 64% of renters have aspirations to someday own their own home
• 70% of renters think that owning is superior to renting

Bottom Line

Our belief in the value of homeownership grows each time this survey is released.

Thanks to our friends at KCM blog for this post.

Here is a recent post about why buying a home in Salt Lake City is a great investment.

National Housing Survey 2012 | Utah Mortgage & Real Estate Information Blog

Understand that the VA (Veterans’ Administration) is, in the mortgage world, like HUD is with FHA financing. They are an insurance company, collecting premiums and using the backing of the Federal government to guarantee the payments to lenders. Because of the government’s guarantee, lenders can stretch traditional guidelines and offer very competitive terms (of course, while adhering to the VA’s guidance).

Some of the more attractive features of a VA loan are:

1. 100% Financing on Home Purchases – Veterans, assuming they are in good standing, can buy a home with no money down. In most cases, the maximum VA loan is $417,000.
2. The Ability to Finance Reasonable Closing Costs – On many VA loans, the closing costs are negotiated into the sales price and the seller pays them. This feature can significantly reduce the cash a veteran needs to buy a home.
3. More Understanding with Regards to Credit Challenges – In an effort to help those who served us, lenders are more liberal towards hiccups in credit.
4. Common-Sense Look at Income – Rather than approve loans strictly by income ratios, VA mortgages incorporate what is called Residual Income. There is a form that actually budgets all expenses (not just housing) to account for family size, heating and electrical usage, and more.
5. Financed Insurance Premium – The VA charges what they call a Funding Fee to set up a fund to reimburse lenders, should a default occur. The Funding Fee varies on loan terms and usage (consult your lender for exact costs), but the good news is that it is typically just added to your loan. Instead of paying thousands of dollars up front, you can pay $10-$50 a month in a higher payment.
6. Refinancing Your VA Loan is Easy – Through the I.R.R.L. (Interest Rate Reduction Loan) Program, getting a better rate (if the market has better rates) does not carry with it all the verifications of income, credit, appraisals, and assets of other loans…and closing costs can be added into the loan! The logic is the VA is already “on the hook” and lowering the payment increases the likelihood of continued payments, so why not be as lenient as possible.

For more detailed answers and information, please contact me. With three million veterans returning home in the next couple years, the opportunity of VA financing needs to be publicized.

Thanks to our friends at KCM blogs for this post.

Mortgages and Veterans | Utah Mortgage & Real Estate Information Blog

So you want to make a purchase and you believe in brick and mortar investments. Now comes the tricky part: where to buy that house. To find the best places to invest in a real estate purchase now, Realtor.com created a list which sorted through February housing and jobs data for 146 Metropolitan Areas, looked at listing price data, sales data and inventory trends such as the amount of homes available in each market and number of days on market.

Salt Lake City ranks number six on the list with these promising numbers:

• Prices are down 19.4% from their peak
• Unemployment rate at a mere 5.9%, with a vibrant, growing economy, while the national rate is at 8.2%
• Housing inventory down 31% from last year
• Median time for days on the market at 90
• Median list price of $195,000

The time has never been better to invest in your future by investing in real estate. Give me a call or drop me a line and let’s get going before the summer buying rush is on.

Copyright© 2012 JLM Industries All Rights Reserved

Salt Lake City Ranked 6th in Top 10 Cities to Buy a Home | Utah Mortgage & Real Estate Information Blog

On March 23, Citywide Home Loans hosted Economist Jeff Thredgold’s 2012 Real Estate Forecast at the Market Street Grill Cottonwood. This video highlights Jeff Thredgold’s informative presentation, and the article below emphasizes his important points.

Utah Economic Outlook
Winter 2012

Written by Jeff Thredgold, President, Thredgold Economic Associates
Economic Consultant to Zions Bank

NO ONE HORSE TOWN
Utah economic fortunes continue to improve, with solid performance in a variety of employment sectors. The Utah economy currently ranks third of the 50 states as measured by the growth rate of employment during the past year, trailing only North Dakota and Oklahoma, each significant energy players.

The Utah economy added 32,000 net new jobs during the most recent 12-month period, a 2.6% growth pace. Recent data now suggests the Utah economy has regained roughly half of the jobs lost in late 2008 through early 2010 resulting from the nation’s and Utah’s most serious recessions since the Great Depression.

A favorable development within the Utah economy is the increasing diversification of employment. Five major employment sectors have added at least 5,000 net new jobs during the past 12 months manufacturing; trade, transportation & utilities; professional & business services; education & health services; and leisure & hospitality.

In addition, the Utah natural resources sector added 800 net new jobs, a growth pace of 7.3%. Such diversification bodes well for Utah in coming years to help absorb shocks to any one sector. The state will also benefit in 2012 and 2013 as additional employment activity is recorded in the residential home construction sector, an area where thousands of jobs were lost during the past four years.

JOBLESS DECLINE
The state’s unemployment rate declined to 7.0% in the latest month. Such a rate compares favorably to the 9.0% average U.S. unemployment rate of the past three years, as well as various months early in 2010 where Utah’s rate reached 8.0%. However, the current 7.0% rate pales versus the 2.8% average Utah rate during 2006 and 2007. We do anticipate measurable declines in the Utah unemployment rate during 2012 and 2013.

TOP RANKED BUSINESS
Utah continues to do very well when compared to the 49 other states as an attractive place to live, work, recreate, and raise a family. Forbes magazine ranked Utah #1 in the nation (for the second year in a row) as the best state in the U.S. for doing business and establishing a successful career. “No state can match the consistent performance of Utah,” noted the article.

The survey measured such components as business costs, labor supply, regulatory environment, current economic climate, growth prospects and quality of life. Utah’s moderate overall cost of doing business, including much lower energy costs, contributed to the top ranking. In addition, the state continues to rank at or near the top as being the best managed state in the nation.

TOP RANKED SKIING
Deer Valley Resort was recently named North America’s top ski resort (for the fifth straight year) by readers of Ski magazine. Three other Utah resorts: Park City Mountain Resort, the Canyons, and Snowbird, ranked among the top 20 resorts. When considering the quality of snow, Utah resorts claimed six of the top 10 spots. In addition, Park City Mountain Resort ranked first as a “family vacation” destination.

OTHER STRENGTHS
The state’s oil and natural gas sector has performed well in recent years. For the first time there are more than 10,000 producing oil and gas wells in the state, according to the Utah Division of Oil, Gas and Mining. Utah currently ranks 11th in the nation in crude oil production and ninth in natural gas production.

The Wall Street Journal recently ran a cover story entitled “Where the Action Is.” It reviewed seven communities across the nation where industry hubs are drawing entrepreneurs and investors. The only community mentioned in the Western U.S. was Ogden, Utah. The article reviewed the growth of the outdoor sports gear industry, where “manufacturers are pouring into this small city, lured by easy access to Olympic facilities and pristine terrain for testing products.”

A recent story in The Salt Lake Tribune noted the significant growth that could soon occur in the state’s aerospace and high-tech manufacturing industry. Three companies already doing business in Utah could soon expand their investment and employment substantially to take advantage of solid demand for their products and a business-friendly Utah economy.

UTAH IN 2012
The state’s economy is expected to continue the rebuilding process in place for the past two years. Increasing diversification of Utah employers, combined with high regard for Utah as a place to do business, bodes well for Utah and its residents for years to come.

Copyright© 2012 JLM Industries All Rights Reserved

Jeff Thredgold Event Highlights | Utah Mortgage & Real Estate Information Blog

Today, that quick and easy strategy (for the Loan Officer) is not enough and often results in a last minute decline by an Underwriter, lost money and not closing on your home.  There are literally hundreds of new underwriting rules about length and type of income (bonus, OT, commission, shift differential, etc.), credit (scores, history, seasoning of bankruptcy, foreclosure, short-sales, etc.) And don’t get me started on source of funds for down payment.  It’s RIDICULOUS!

The truth is, the underwriting process has become insanely anal, but griping about the current guidelines won’t do you or me any good.  What we can do is PREPARE well in advance, review and analyze your income like an Underwriter will, and work through potential challenges early in the process of finding a home.

If you want an UNEVENTFUL loan and closing on your new home, we suggest clients complete a full Credit and Income Approval.  This is where we gather and review all documents as well as run Automated Underwriting for FHA, Conventional, USDA or VA loans.  When our team is done with your Credit and Income Approval, it’s like a blank check.  You find a home and we’ve got the cash ready for you.

Here are the steps to the Credit and Income Approval process:

1. Complete a quick online or verbal application.
2. We will request a list of documents from you that are specific to your situation and decided loan program.
3. We then verify employment, credit, income, child support, alimony, credit related documents, source of down payment funds (the list goes on and on).
4. We underwrite and issue a written Credit and Income Approval (blank check).

Is this more work for you?  Not really, you are going to be asked to supply all these documents eventually and once we have them we won’t ask you for them again.  And trust me, gathering these items before you’ve boxed up the house is a lot easier than the last minute panic search for your Social Security card.

How long does this all take?  Well, that really depends on your history. If you have had multiple jobs, marriages, or credit blemishes, the process can take up to a week to gather and review everything.  If you are in need of a quick pre-approval letter so you can make an offer, we will try to accommodate you, but we suggest you keep moving forward towards the full Credit and Income Approval.

Like most things in life, a little extra effort in the beginning leads to a more desirable outcome in the end and that is why we recommend the full Credit and Income Approval process.

It would be our pleasure to answer any questions and help you into your new home!

Copyright© 2012 JLM Industries. All Rights Reserved

Why Mortgage Pre-approval Is NOT Enough… | Utah Mortgage & Real Estate Information Blog

But as I began to ascend the corporate ladder, I discovered that the key to success began to shift. It became less and less about having the right answers and more and more about having the right questions.

In the age of Google, answers are the easy part. You can look up virtually anything and have the answer almost instantaneously. But this only happens if you know how to ask the right questions.

If you are going to be a successful leader, you are going to have to learn how to ask good questions. Here are seven tips for taking this skill to the next level.

1.  Ask open-ended questions. Questions that can be answered “yes” or “no” are closed-ended questions. They don’t generate discussion and they rarely yield any insight. By asking open-ended questions, you get far more interesting insights. For example, instead of asking, “Are you happy with your results?” you might ask, “Why do you think you got the results you did?” The first question can only be answered “yes” or “no.” The second question invites reflection and starts a discussion.

2.  Get behind the assumptions. Every business decision is based on assumptions. If you don’t understand these assumptions, you may, in fact, make a bad decision. It’s often helpful to ask yourself first—and then your colleagues—“What are we assuming in this scenario?” Then you need to keep peeling the layers off the onion until you get comfortable with the assumptions. This is where people often make mistakes. The logic may be impeccable, but if it’s built on faulty assumptions, you’ll end up with a faulty conclusion.

3.  Get both sides of the story. It is so easy to hear one side of the story, act on the information, and then be embarrassed when you find out that you only had half the facts. I have done this hundreds of times, I’m sure. I think I am getting better at getting both sides of the story, but I still consider myself “in recovery.” I have to constantly remind myself, There are at least two sides to every story.

4.  Ask follow-up questions. Avoid the temptation to comment on every question. Sometimes I like to see how many questions I can ask in a row without commenting. It’s amazing what you can learn when you do this. And it makes your comments or decisions much more informed. Often you don’t get to the real meat of an issue until you’ve gone several questions deep.

5.  Get comfortable with “dead air.” Most people get uncomfortable when things get quiet. They feel the obligation to fill the space with chatter. You can let this work to your advantage by just keeping your lips locked and your ears open. When you do, you will often find that people volunteer amazing amounts of information that you would have never obtained any other way.

6.  Help people discover their own insights. One of the best ways to mentor others is to ask rather than tell. Yes, you can pontificate to your subordinates, but your insights will not be as meaningful to them as they are to you. You can accomplish far more by leading them with good questions. One of my favorite, especially in the wake of a mistake or disappointment, is this: “What can we learn from this experience that might be useful to us in the future?”

7.  Understand the difference between facts and speculation. One of my former bosses once told me, “Make sure you tell me what you know and what you think you know, and make sure I know the difference.” People make all kinds of statements that they think are based on the facts. These should immediately cause your radar to go off. Often you will have to ask, “Do you know that to be a fact?” If so, “How do you know?” or “Can you provide me with the source for that statistic or claim?”

Finally, when you are asking questions, take notes. It communicates tremendous respect for the the person you are interviewing. It is also very helpful when things get quiet. You can go back over your notes and discover new questions you haven’t yet thought about or asked.

Thanks to our friend Michael Hyatt of Intentional Leadership for this post.

7 Suggestions For Asking More Powerful Questions | Utah Mortgage & Real Estate Information Blog

Thanks to our friends at KCM blog for this post.

Home Prices Ready to Rebound! | Utah Mortgage & Real Estate Information Blog

Gold, a fixed asset whose supply does anything but fluctuate, has long been used as a hedge against inflation, although real estate will do a better job going forward due to its availability and current pricing.

“The bottom line is I love real estate,” says Trump.

“I like it because I think you are going to have massive inflation at some point, and to me real estate is a much better hedge against inflation than gold, which you can’t touch.”

Inflation fears aside, fundamentally, real estate is a good play, even for the small investor.

“I think it’s a great time to buy a house whether you live in it or rent it out,” Trump says, adding investors should target homes banks own and want to divest.

“You should only buy a house from a bank that owns the house because the bank will give you financing for that one because they want to get rid of it.”

Turning to stocks, a rather new asset class for Trump, Procter & Gamble and Pepsi are good plays.

Previous good bets included Bank of America.

“Now, my timing was better than my knowledge,” Trump says.

Some cautious market observers see the housing market finally bottoming out, including Robert Shiller, who predicted the tech bubble in the stock market in 2000 and the housing bust a few years later.

“It could turn around, you know. It’s been going a long time,” Shiller, a Yale economist and co-founder of the Case/Shiller Housing Index, told CNBC recently.

“We’re seeing some good news now. Starts, permits, confidence,” added Shiller, known for his often bearish views on the sector.

The S&P/Case-Shiller composite index of 20 metropolitan areas dipped 0.5 percent on a seasonally adjusted basis in December after declining 0.7 percent in November.

The 20-city index fell to 136.63, the lowest level since January 2003.

While home prices are still falling, the pace of their decline appears to be slowing, which suggests the sector may finally be hitting bottom, although further declines are still possible.

“After a prior three years of accelerated decline, the past two years has been a story of a housing market that is bottoming out but has not yet stabilized,” says David Blitzer, chairman of the index committee at Standard & Poor’s, according to Reuters.

“The pick-up in the economy has simply not been strong enough to keep home prices stabilized. If anything it looks like we might have reentered a period of decline as we begin 2012.”

Other experts agree that the bottoming out phase will last a while.

“House prices are continuing to be very weak even though we have seen some leveling off on the activity side of the data,” says Sean Incremona, economist at 4Cast Ltd. in New York, Reuters adds.

“It will take some time for that relatively positive activity to filter in to prices, but at the same time we are still looking at foreclosure issues, distressed properties and low absolute levels of activity. It is really a tough market for these prices to make any progress.”

Trump: Real Estate The Best Hedge Against ‘Massive Inflation’ | Utah Mortgage & Real Estate Information Blog

The area was hard hit by the housing crisis and Willow and her mother were able to buy the home which was once valued at $100,000 for just $12,000. Why would a 14 year old even consider buying a property?

She is using her half of the rent they charge ($700) to pay back her mom for the second half of the house and the renovations they put into the house. Willow says she’ll have it all paid off in six years. Then she’ll keep the house as a source of income.

“It was definitely a lot of inspiration from my mom and my grandma,” Tufano said. Her mom is a successful real estate agent who owns several investment properties.

Thanks to our friends and KCM blogs for this post.

Even a 14-Year-Old Knows It’s Time to Buy | Utah Mortgage & Real Estate Information Blog

FHA mortgage insurance is going up on April 9th, costing clients thousands more over the life of the loan. It’s imperative we get the purchase agreement or property address prior to April 8th so we can lock in the current mortgage insurance premiums.

P.S. I have a few more tickets to the Jeff Thredgold event on March 23rd at 8:30 AM at Cottonwood Market Street. Join us for 2012 real estate forecast and breakfast. Phone: 801-747-1210 Email: josh@joshmettle.com

FHA Mortgage Insurance Increases April 9th | Utah Mortgage & Real Estate Information Blog