On The Road Home

How Does the New Appraisal Law Affect You?

noreply@blogger.com (Robert and Jani) — Thu, 11 Jun 2009 20:19:00 +0000

New Home Valuation Code of Conduct (HVCC) regulations went into effect on May 1, 2009 and they are having an impact on all parties involved in a real estate transaction, including refinances.

The intent of the new regulations were to enhance the integrity of the appraisal process, and it begins with the ordering of an appraisal. Lenders can no longer choose an appraiser from their pool of appraisers. The appraisal must now be ordered through a third party appraisal management company (AMC) who will randomly select an appraiser. As a result, borrowers can expect a new "norm":

Appraisals now cost more due to the fact that they are handled by a management company. Expect to pay around $425 or more - they used to be $350. You might also experience additional fees that were never charged before such as fees for no-shows, or a higher fee for a more expensive home.

Expect to pay for the appraisal when it gets ordered instead of at the closing table. And you might also be required to pre-pay an amount in anticipation of a no-show.

If your loan application gets rejected, a new lender could require a new appraisal.

Because the appraisal process takes much longer going through a management company, be sure you allow enough time in your contract to allow for the new requirements. Rush files are going to be difficult at best.

Getting Your Home Ready to Sell

noreply@blogger.com (Robert and Jani) — Wed, 20 May 2009 21:45:00 +0000

When it comes time to sell your home, most sellers have a list of things they want to take care of before putting their home on the market. It's that nagging little "to-do" list" that you've been meaning to get to.

A good rule of thumb - if it's broken fix it. If you are capable of making a professional repair, then by all means go ahead, otherwise, call in a professional. You will get it repaired correctly and be less apt for the buyer to mention it later during their inspection.

Beyond that, focus on things that make the rooms look bigger, brighter and more spacious. Start by going through each room in your home and de-cluttering, boxing up and storing items that aren't being used. Clearing off counter-tops will give the appearance of having ample storage

Specifically, repair all the electrical and plumbing issues. Replace old carpet or at least have them cleaned - especially if you have pets. Applying a fresh coat of paint will make the home sparkle. And you might consider neutralizing rooms that have strong paint colors - buyers like a neutral palette they can make their own. And don't forget the outside - spend a little time in the yard cleaning up the landscaping and make sure the entrance to your home is clean and tidy.

With some homes taking longer to sell, homeowners will want to do every thing they can to get the best price in the shortest amount of time.

How Your FICO Score is Determined

noreply@blogger.com (Robert and Jani) — Mon, 20 Apr 2009 19:20:00 +0000

Here is how your FICO (credit) score is determined. The percentages below show how each area is weighted in your total score.

Payment history (ontime versus late): 35 percent

Dollar amounts owed (total amount owed on credit): 30 percent

Length of credit history (how long you have had a charge/payment history): 15 percent

New lines of credit: 10 percent

Types of credit used (credit cards, loans etc): 10 percent

Help is Here - Obama's Home Affordability Initiatives

noreply@blogger.com (Robert and Jani) — Mon, 09 Mar 2009 16:05:00 +0000

The Treasury Department along with the White House have released the details on the new "Home Affordable " initiatives.

The refinancing program will allow an estimated 4-5 million borrowers with Fannie Mae or Freddie Mac loans to refinance into new 30-year loans at the current market rates. First, homeowners will need to verify that either Fannie Mae or Freddie Mac actually holds the mortgage, by calling their mortgage servicer.

Beginning immediately, Fannie Mae and Freddie Mac can provide:

Refinancing without requiring new mortgage insurance - normally mandatory for loans with less than 20 percent equity.
Maximum loan-to-value ratios up to 105 percent.
Maximum mortgage amounts as high as $730,000.

The second program, called "Home Affordable Modification" is provided to restructure 3-4 million seriously delinquent mortgages - those loans which would go to foreclosure this year and which meet the following criteria:

Loans that closed prior to January 1, 2009.
Homeowners must agree to work with their servicer to make on-time payments at a reduced rate.
Under this program, loan servicers who help troubled homeowners, by reducing payments to no more than 38% of their monthly income, will receive matching government funds to reduce payments even further to 31% of monthly household income. To accomplish this, interest rates on some loans could go to as low as 2%, length of the loans extended to as long as 40 years, and loan balances could be reduced as well.

As always, we are here to support your real estate needs and happy to help you in any way that we can....just a phone call away!

First-Time Homebuyer Tax Credit

noreply@blogger.com (Robert and Jani) — Tue, 17 Feb 2009 17:39:00 +0000

Included in the new stimulus package that President Obama signed on Tuesday, was a revision and continuation of the First-Time Homebuyer Tax Credit. The revised law is in effective for purchases made on or after January 1, 2009 and before December 1, 2009.

If you purchased on or before April 9, 2008 and December 31st, 2009 - please contact us or your Lender for the features of the law that were in effect at that time.

Effective from January 1, 2009 -December 1, 2009, here are the current rules:

The tax credit is for 10% of the purchase price up to $8,000, instead of the original $7,500.

The effective date has been extended to December 1, 2009, from July 1, 2009.

The new tax credit does not have to be repaid if you keep the house for 3 years.

The income maximums where the credit starts to phase out is $75,000 for individuals and $150,000 for couples.

The new law allows a buyer to borrower the down payment from a relative and repay it when they receive the tax credit. In an example, the down payment for an FHA loan is 3.5%. This would cover a purchase price of upto $228,500.

Please contact us for all your real estate questions or needs - we are happy to assist you!

Watch The Video on 10 Mistakes Sellers Make

noreply@blogger.com (Robert and Jani) — Wed, 07 Jan 2009 21:44:00 +0000

Upside to a Down Market

noreply@blogger.com (Robert and Jani) — Wed, 07 Jan 2009 18:51:00 +0000

I know we've written several blogs on what a great real estate market is hidden in this down economy, but if the timing is right for you, you won't want to miss out on this opportunity!

Government intervention has caused the mortgage rates to slip below 5% and they could dip even lower. Talk to your Lender now and if you need a reliable recommendation, we are happy to give you several names from which to choose.

We've all heard that no one is lending money and that is simply not true! Here's your best bet...1) stay with conforming loans - those guaranteed by government enterprises such as Fannie Mae and Freddie Mac 2) protect your credit score - you need a score of 680 to get the best rates 3) equity is King - those with the most equity will get the best rates and 4) refinance only if there is a benefit to you. To determine how many months it will take to pay for the costs of refinancing, divide the closing cost amount by the monthly savings. For example, if the closing costs are $2500 and the monthly payment difference is $150, it will take 16.67 months to recoup the cost of refinancing. It only makes sensce if you plan to be in the home that long.

If you need someone to walk through the different scenerios, we are always happy to help you!

Remodeling & Updating Will Protect Your Investment

noreply@blogger.com (Robert and Jani) — Tue, 16 Dec 2008 18:34:00 +0000

Here are some interesting statistics shared by the NATIONAL ASSOCIATION OF REALTORS. While home prices have fallen by 7% nationally over the past year, on average a homeowner's investment in remodeling projects has only declined by 3.86%, from 2007-2008. Based upon a national average, a homeowner can expect to recoup approximately 67.3% of their remodeling investment - provided the improvement it is done with the same integrity as the rest of the house. In other words, if you are about to finish an unfinished basement, it needs to be done with the same quality of workmanship as the current living area and remodeling should be done with upgraded or "present time" finishing materials.

Remodeling projects that increase curb appeal seem to lead the way, followed by kitchen remodels. Here are the top 10 based on the approximate percentages recouped:

1. (86.7%) Upscale fiber cement siding

2. (81.8%) Mid-range wood deck

3. (80.7%) Mid-range vinyl siding

4. (80.4%) Upscale foam-backed siding

5. (79.5%) Mid-range minor kitchen remodel

6. (79.2%) Upscale vinyl window replacement

7. (77.7%) Mid-range wood window replacement

8. (77.2%) Mid-range vinyl window replacement

9. (76.5%) Upscale wood window replacem,ent

10.(76.0%) Mid-range major kitchen remodel

Cities Poised for a Comeback!

noreply@blogger.com (Robert and Jani) — Tue, 18 Nov 2008 20:29:00 +0000

A publication by SmartMoney on November 2, 2008, cited 7 cities that are poised for a comeback in the real estate market and Denver is one of them! Who are the others?

Seattle, Raleigh, Des Moines, Philidelphia, Birmingham (Al), and Salt Lake City.

Buying and Keeping your Current Home as a Rental?

noreply@blogger.com (Robert and Jani) — Thu, 06 Nov 2008 20:20:00 +0000

Here's the latest tip from the mortgage experts at Mortgage Support Services:http://the mortgageexperts.blogspot.com/

Just a reminder that the new rules for buying a primary residence, while retaining a current primary residence as a rental, have gone into affect. Here's how it works.

If someone is planning to retain their current primary residence as a rental, they must have 30% equity in their current primary residence if they need to include any rental income to qualify for the loan. They also need a lease agreement and proof that the security deposit for the rental has been deposited into their account.

If they don't have 30% equity in their current primary residence, they can still buy a new primary residence, but they cannot count any rental income from their current house. In other words, they need to be able to qualify for the loan counting both house payments.

There are also reserve requirements that must be met. Reserves are liquid assets (bank accounts, retirement accounts, etc.) that the borrower will have left over after the closing. The reserves could be as high as 6 times the house payments, but if the loan is run through an automated underwriting system, they are usually lower than 6 months.

For FHA loans, the amount of equity that's needed is 25%, not 30%. The 30% equity requirement is for conventional (non-government) loans.

Call us if you have any deals like this. You don't want to waste any time or money chasing a deal that is never going to happen. We make it our business to know all the rules.

Enjoy Your Colorado Staycation

noreply@blogger.com (Robert and Jani) — Tue, 04 Nov 2008 17:25:00 +0000

A "staycation" is defined by Wikipedia , as "a period of time in which an individual or family stays at home and relaxes at home or takes a day trip from their home to area attractions".

With the rising price of gasoline and increasingly troubled economic times, this has become the new way of enjoying your time off. At first blink it may seem like a let down, but gone are the days when you just jumped on a plane for a quick getaway. We are tending to stay closer to home. However, for those of us lucky enough to live in Colorado, there is plenty to see and do in our own backyards!

Whether you have three hours or all day, you can truly experience Colorado right here in South Metro Denver. The South Metro Denver Events and Visitors Bureau has created "Best Trails" - eight carefully planned itineraries for exploring South and Metro Denver attractions, recreation, entertainment and sporting venues. These are excursions for those living here, visiting, or just passing through. You will also find resources for transportation, hotels and restaurants, along with many special offers.

Identity Theft at Countrywide!

noreply@blogger.com (Robert and Jani) — Sun, 02 Nov 2008 00:42:00 +0000

Your personal information may have been violated by Countrywide! If you have made application for a loan or have a current loan through Countrywide, to learn more please visit: http://www.countrywidelawsuit.net/.

There is a class action law suit that you and your spouse/co-borrower are eligible to join, regardless if you were notified of the breach of confidential information - and especially if you were NOT notified.

If This Is Your Time - It's A Great Time!

noreply@blogger.com (Robert and Jani) — Sat, 25 Oct 2008 22:33:00 +0000

We've all heard how terrible the real estate market is - don't buy now, better wait. Wait for what and how long? I don't disagree, for some it may be the best option and we are happy to help you navigate that decision making process. So, please give us a call and let's chat.

But, if this is your time - it is a great time and you shouldn't wait. If you are comfortable in your job and you have good and adequate credit - this is an opportunity and it's not going to last. Interest rates are still at historical lows and decreased home values can make this an opportune time to buy or make a move. It's like the Big Apple sale at Foley's.

I know you are thinking, "but I've lost value in my home - I can't afford to sell it". Hmmm, or could that be, I can't afford not to sell it? If you are using this opportunity to sell your home and make a move, it's likely that the home you are purchasing, also affected by the market, will be making a price adjustment. So, if you are buying a home at a discount, then your real loss is the difference between what you lost on your home and what you saved on the purchase. Right? Also, when we begin seeing that appreciation again and I think it's coming soon, you will have gained more appreciation on the more expensive home.

As reported in Saturday's business section of the Rocky Mountain News, Lawrence Yun, chief economist for the REALTORS, said there are some glimmers of hope that the bottom may be near. California has experienced a sales turn around and it was beginning to spread to other regions, including Colorado, Kansas, Minnesota, Missouri, and Rhode Island.

Beware of Road Construction

noreply@blogger.com (Robert and Jani) — Fri, 10 Oct 2008 17:09:00 +0000

Construction will begin at the Intersections of Arapahoe Road and University Boulevard on Monday, October 13th. For more information visit the City of Centennial Website.

The Market is Showing Signs Of Improvement!

noreply@blogger.com (Robert and Jani) — Mon, 06 Oct 2008 22:33:00 +0000

Finally, we are starting to read some positive news articles about the Denver area real-estate market.

As reported in the Rocky Mountain News (9/30): Denver home prices buck national trend: Denver area home values bucked a national trend, according to the closely watched Standard & Poor's/Case-Shiller Home Price Indices released today (9/30). In the 12-month period ending in July, Denver area home prices dropped by 4.7%, compared with an overall 16.3% drop for all of the 20 metropolitan areas in the study.

As Reported in the Denver Post: Denver's stronger real-estate market good news for buyers: Colorado's largest mortgage lender is making it easier for homebuyers to borrow money. Wells Fargo Home Mortgage on 9/13, upgraded the status of the Denver metropolitan area's real-estate market from "distressed" to "stable".

MLS Statistics: Housing inventory down: Listing inventory drops 18.733% in one year! This September shows an active listing inventory of 25,543 units for residential and condominium homes on the market. This is the lowest September inventory since 2004!

FHA Requirementst Are Changing!

noreply@blogger.com (Robert and Jani) — Mon, 22 Sep 2008 15:27:00 +0000

FHA is implementing new guidelines. As of January 1, 2009, all FHA loans will require a 3.5% down payment. The current requirement is 3.0%. So, for instance on a $200,000 loan, the extra .5% down payment would cost you an additional $1,000! Any FHA loan that has had a case number assigned prior to January 1, 2009 will only require the 3% down payment.

Selling Your Home? Stand Out With The PRC Advantage!

noreply@blogger.com (Robert and Jani) — Wed, 10 Sep 2008 19:41:00 +0000

If we want our clients to stand out amongst their competition, then we, as agents, must stand out too! Robert and I have set our standards very high and are committed to providing our clients with the very best service. We pride ourselves in staying abreast with current market conditions, trends and technology. Being chosen, as the first PRC Council Members® in the State of Colorado, is a testament to our success in achieving this higher level of professionalism.

Through our affiliation with Parent Relocation Council® we are able to offer our clients an array of benefits that are available only to consumers working with a PRC Council Member ® .

To learn more about our new marketing advantage, including "The PRC Certified Home"® , call us at : 303-770-1977.

Now Is The Time To Buy!

noreply@blogger.com (Robert and Jani) — Tue, 19 Aug 2008 20:27:00 +0000

Now IS the time to buy - especially if you are a first time buyer! A first time home buyer is defined as " a buyer who has not owned a principal residence during the three-year period prior to the purchase".

The Housing and Economic Recovery Act of 2008, offers up to a $7500 tax credit to first time home buyers. This applies to single family homes, townhouses, condominiums, manufactured homes and houseboats that close between April 9, 2008 and July 1, 2009. You must meet income requirements as well. Please see my last post for additional information.

The tax program is simple. Qualifed individuals claim the tax credit on their federal income tax return. It doesn't require any additional paperwork. If you are certain, absolutely certain that you are making a purchase, you are permitted to reduce your income tax withholding. By reducing your tax witholding (via your W-4 through the employer) the buyer is able to start accumulating cash by increasing the take home pay, and then applying the money towards downpayment and closing costs.

What is important to know about this Act - this is a tax credit - a non interest loan - meaning you must repay the government either over the next 15 years or when you sell the home, if there were sufficient capital gains from the sale.

Please call us with your questions! Let us help you get in to your first home - but hurry, this tax credit is only unavailable until July , 2009!

New Tax Credit Bill

noreply@blogger.com (Robert and Jani) — Thu, 31 Jul 2008 17:49:00 +0000

The new housing bill was signed into law on 7-30-2008. It's 694 pages long and most of it will not directly affect agents or our buyers. The information that follows was provided by Chris Thomas of Mortgage Support Services, located in Westminster, Colorado and Chris can be reached at: 303-345-3683.

The biggest immediate impact will result from the new tax credit that is available for first-time home buyers. First-time home buyers who have purchased a primary residence on or after April 9, 2008 and before July 1, 2009, will get up to a $7500 tax credit when they file their income taxes. It has to be paid back over the next 15 years, but there will be no interest accruing. It's basically a $7500 interest-free loan. Here are the details:

It only applies to first-time home buyers, who are defined as people (including their spouses) who have not held title to a property in the 3 years preceding the purchase date.

The tax credit is a maximum of $7500, which is credited to the buyer when they file their tax return. Depending on their income, the credit may be less. The credit starts getting phased out when the buyer's modified adjusted gross income exceeds $75,000 ($150,000 if a joint return). They should consult an accountant on this issue.

They owe the money back over the next 15 years in equal installments, provided they still own the house. There is no interest on the credit, so if they get the full $7500 credit and keep the house for the 15 years, they would owe an extra $500 each of those 15 years on their taxes.

If they sell the house before the end of the year in which they purchased it, then they do not get the credit.

If they sell the house after they get the credit, but before the 15 year repayment period is up, they owe the rest of the credit back to the IRS, but only to the extent that they show a profit on the property. For example, if they buy a house for 100K and sell it for 105K, they only owe 5K - not the entire $7500.

This is only for primary residences.

The buyer cannot buy the property from a relative and get the credit.
If the property ceases to be their primary residence (or the primary residence of the spouse) before all the money is paid back to the IRS, they owe the IRS for the outstanding balance in that tax year.
If the buyer dies before the credit is paid back, their estate does not owe the money back to the IRS.
If someone buys a property next year before July 1, 2009, they can treat it as if they bought it on December 31, 2008 and claim the credit on their 2008 tax return.
The effective dates for the purchase are on or after April 9, 2008 and before July 1, 2009. This is not a permanent tax credit.
This does not apply to non-resident aliens. Resident aliens (green card holders) can get the credit.

This applies to all houses, not just to houses that are in foreclosure, bank owned or HUD homes.There are other things in the act that will affect your business directly besides the tax credit (especially if your buyers use FHA financing), but this covers the tax credit.

Free Prescription Drug Card for Arapahoe County

noreply@blogger.com (Robert and Jani) — Sun, 20 Jul 2008 18:46:00 +0000

A new "free prescription drug" card for residents of Arapahoe County allows way to save on prescription drugs. With the rising costs of health care and medications, this card should be of help at the pharmacy.

To use the NACo (National Association of Counties) prescription card, simply present it at a participating pharmacy. That's it! No enrollment, no memberhsip fee OR limits on frequency of use. The card can be used by cardholders and family members anytime their prescriptions are not covered by insurance.

The card offers an average savings of 20% off the retail price for commonly prescribed drugs. And is accepted at more than 90% of the county's pharmacies according, according to information from the commissioners. The card also covers discounts on pet medications!

For more information and where to get your card, please the above link to Arapahoe County or call: 1-877-321-2652.

New FHA Rules

noreply@blogger.com (Robert and Jani) — Mon, 14 Jul 2008 19:07:00 +0000

Effective today (7-14-08), FHA will be changing the way it calculates the mortgage insurance premium (PMI). It used to be the same formula (percentage wise) for everyone. Not anymore! Now the mortgage insurance (MIP) rates will vary depending on the borrower's credit score and the loan-to-value ratio. So, knowing your credit score and maintaining good credit will become even more important, when looking to purchase a home with an FHA mortgage. Visit my recent articles on our activerain blog to read more about credit scores (FICO), how to obtain your credit report, where to get your FICO scores, and how to increase your credit score.

This Weeks Housing Report

noreply@blogger.com (Robert and Jani) — Tue, 17 Jun 2008 15:23:00 +0000

Finally, some good news! Us home sales actually showed some unexpected strength last week. April pending home sales rose 6.3%, instead of the expected 1.0% drop. Signed contracts were reported at a level of 88.2, the highest level in 6 months. A reading of 100 equals the average sales activity we experienced in 2001. Experts are saying that the April figures could suggest that home sales have stopped the "free fall" and the market could be poised for a rebound soon.

During Fed Chairman, Ben Bernanke's, speech on Monday, he said that he belives that the economy is out of danger and the Fed would now pay "close attention" to inflation. Experts in the financial sector immediately interpreted this to mean that rate cuts are officially over. With some even thinking a rate hike may come as soon as August and many others consider a 0.25% increase for October will be likely.

If you have been sitting on the sidelines, waiting for rates to fall further, now might be the time to get in the market and make sure you don't get caught as rates climb back up, and the market begins its recovery.

Parent Relocation Council Chose Us!

noreply@blogger.com (Robert and Jani) — Fri, 06 Jun 2008 17:40:00 +0000

Robert and I are proud to announce that we have been selected by the Parent Relocation Council (PRC)® as the Regional Directors for the State of Colorado. http://www.parentrelocationcouncil.org/

PRC is commited to providing exemplary services and relocation benefits to consumers who otherwise would not have the benefit of a corporate transfer. Regardless of whether your move is across the street or across the nation, PRC believes that you should be entitled to those very same benefits.

PRC requires all of their selected REALTORS® to undergo and pass an extensive background check before being accepted as a Council Member. In order to retain Council Membership with PRC, a REALTOR® will be subject to random and recurring background checks and must maintain a consistant Customer Satisfaction Index (CSI). This ongoing customer survey system will assure consumers that a high standard of service is maintained.

We would love to share with more about our affiliation with PRC. Call or drop us an e-mail anytime!

The Housing Market Isn't All Bad

noreply@blogger.com (Robert and Jani) — Tue, 27 May 2008 16:53:00 +0000

The housing market has been making front page news since 2006. Most of it being bad news, due to the high number of foreclosures and the mortgage industry. Admitedly, there were many cases of wrong doing where the consumer has been harmed. I strongly believe this needs to be reported and the public should be made aware of these situations, and the bad guys should have to face the penalities.

However, many other consumers being hurt as well. All of us, who are repeatedly subjected to only the "negative news". I have been reminded many times over these last couple of years, that "bad news is what sells".

My point here, is that while terrible things have happended to many people and foreclosures are in abundance, it's still not a bad real estate market. There are many homes on the market to choose from and the interest rates are still historically low. Has your home decreased in value? Possibly. But, most likely, so has the home you want to purchase. Is it a good time to buy? Absolutely, unless you are going to need to move in a year and then probably not. Keep in mind, real estate is normally a long-term investment - not unlike the stock market. These past two years have been rough for the housing market, but what is easy to forget, is this decline was proceeded by approximately 10 years of appreciation. Home values and the stock market should be viewed as long-term investments because they run in multi-year cycles, with years of appreciation, followed by a correction. The good news, is that the years of appreciation are typically stronger and longer than the years of depreciation.

So, if you are thinking about buying or selling, talk with us first. Don't let the media determine your next move!

South Glenn Mall Is Gone!

noreply@blogger.com (Robert and Jani) — Thu, 15 May 2008 21:39:00 +0000

In the Spring of 2009, The Streets at SouthGlenn http://www.newsouthglenn.com/ will open nearly 1 million square feet of retail space to create a distinctive shopping experience unlike any other in metro Denver. Both Whole Foods and Barnes & Noble stores will build their Denver flagship locations at SouthGlenn.

The Town Center at the The Streets at SouthGlenn will also include a 16-screen high definition movie theater, more than 20 restaurants and sidewalk cafes, many of the premier national and local retailers, as well as 200 for-rent, luxury apartment homes and 140,000 square feet of Class A office space. The Streets at SouthGlenn's unique mix of retail, restaurants, entertainment, working environments and residential units will help create an up-market, community-based destination.

The Streets at SouthGlenn will also provide exceptional amenities to its shoppers and those who work and live there. Shoppers will enjoy free parking throughout the project, free valet service in two locations and property-wide wireless Internet connectivity. Visitors can also drop off their cars to be washed while at The Streets at SouthGlenn.

First Retailers Will Open in the Fall of 2008!
Construction is well underway on The Streets at SouthGlenn. The center's first retailers - Best Buy, Dick's Sporting Goods, Staples and the new Macy's Home Store - are under construction. All four retailers will open in the fall of 2008.

In addition, construction of the parking structure, which will be located on the western perimeter of the project, will begin before the year ends. Once complete, the parking structure will accommodate 1,755 cars and be home to the center's valet parking pick-up and drop-off as well as a car wash.

The reprint of this infomation was authorized by Kerry Anderson, Director of Marketing and Public Relations for Alberta Developement Partners, LLC