The number one complaint I hear from listing agents is the lack of communication coming from the lender.  They often feel left in the dark and out of the loop when it comes to dates and deadlines being met.

I feel its imperative now more than ever to over communicate the details and ensure that everyone works together to meet our target deadlines and most importantly; the closing date.  A system I’ve implemented and refined over the years is my initial introduction phone call to the listing agent.  It’s not only an opportunity for the two of us to get to know each other, but also for me to identify if there are any potential problems that could cause delays.

There are many important details that should be asked on the front end so we can prepare (and avoid) any possible issues.  If you’re the listing agent on a transaction and haven’t heard from the Loan Officer yet, you might want to give them a call and answer these questions:

• Is this a seller mail out?
• Will the seller be using a POA?
• Will we be closing somewhere other than the title company? i.e. your office
• How would you like us to communicate with you? Email, phone, or text.
• Do you have a team that you would like included on the communication?
• Is there a pending short sale approval?
• How many business days are required for the bank to have figures in advance?
• Is there an HOA? If yes who is the contact.
• Is any personal property listed on the contract?  If so, it will need to be addressed.
• Do we have a fully executed contract including the counter?

As we all know, there are a multitude of glitches that we can run into during the course of a transaction.  Any number of these could quickly take us from smooth sailing to choppy waters.  Communicating key points of the purchase from the get-go allows us to discuss the details and convey any concerns, fears and/or reservations we might have.

Purchasing a home is an enormous decision for our clients and the process can be overwhelming.  It’s our job to take the “overwhelm” out of the equation.  The only way to do this is for the agent and Loan Officer to work together, communicating frequently. 

The goal is that through our combined efforts we have both happy buyers and sellers sitting at the closing table — on time and without last minute heart wrenching complications!

Many of you have been asking me for the radio interview I did with Marc Davison from 1000Watt  Consulting. Here it is in all of it’s glory.

It was a great interview with a bunch of good pieces of wisdom throughout. Below are some time stamps of different topics we got into. Let me know what you think in the comments below!

Marc Davison interview

1:23 – The inspector killed the deal. How Marc got into the real estate vertical.

7:21 – How the real estate industry is being affected by technology/web 2.0/social media

12:28 – Social Media is not new. Don’t dabble.

15:26 – Is real estate a loved brand?

19:23 – The struggle of the real estate industry marketing it’s value proposition.

20:40 – The secret to becoming #1.

28:13 – Transparency and core values

31:38 – Redfin and online ratings

40:25 – Should realtors and brokerages outsource their social media?

45:25 – Title industry: a thought onbeing more innovative

With the cost of FHA mortgages increasing next month, the Fannie Mae Flex mortgage is an excellent alternative to FHA financing and possibly an even better overall solution for some homebuyers given the increased monthly mortgage insurance premium on FHA.

The Fannie Mae Flex program with its minimum down payment of 3% and flexible guidelines is a great replacement to FHA financing and in all honesty a better option for many buyers when you compare the two side by side.

Benefits of the Fannie Mae Flex Mortgage:

• NOT limited to first time homebuyers
• NO income or sales price limits (loan limits do still apply)
• 97% loan to value maximum including any financed mortgage insurance
• 105% total loan to value allowed with eligible Community Second mortgages
• Gift or grants can be used for a down payment
• Seller concessions are limited to 3% of purchase price
• Single family primary residences only (including eligible condos)
• Flexible mortgage insurance options include standard monthly payments or a financed option which allow for the mortgage insurance to be paid through a slightly higher interest rate or paid at closing.
• No homebuyer counseling required.

Surprisingly, most lenders I speak to are not even aware that this option is still available.  Granted, with the loss of so many mortgage programs, it is tough to keep up these days!

The good news is that there are financing choices even in our restricted lending environment.  If you have clients entertaining an FHA loan, make sure they look into the Flex 97.  I’ve included a handy marketing flyer on the advantages of the Fannie Mae Flex 97 that you can swipe and add your information to.  It’s a great way to educate your clients on the details of this alternative to FHA.

Example #1:

Example #2:

A Note on the Statute of Frauds

So how does this work?  It’s simple!  The rent for a multiple unit property where your buyer intends to live in one or more units and charges rent to tenants of other units may be used for qualifying purposes.

There are two circumstances where projected rent for the tenant-occupied units may be considered. 

1. We can use the gross rental income only after deducting the FHA’s vacancy and maintenance factor (ask your lender for these figures or check HUD’s website: FHA Vacancy Factor)
2. Your client is able to pass the Self-Sufficiency Test.  The test states that the buyer may not gross up rental income to directly offset the mortgage payment. 

Multi Unit Properties – Additional Criteria

The multi unit family home must be “self-sufficient” as determined by the following test calculation:

Total monthly mortgage payment ÷ projected rent (as determined by the appraiser) for ALL units (including the owner-occupied unit) minus the FHA vacancy and maintenance factor (or the appraiser-determined vacancy factor if higher) = 100% or less.

Here’s an example of what a scenario might look like:

Your client is interested in purchasing a 4-unit property with total rents received in the amount of $4,000 ($1,000 per unit) – $600 (15% vacancy and maintenance factor) = $3,400

The total projected monthly mortgage payment on your buyer’s new mortgage is $3,350 (PITI plus HOA dues)

$3,350 ÷ $3,400 = 98.5% – Self-sufficiency test passed!

If the property didn’t pass the test, we would be required to reduce the loan amount by whatever number needed to decrease the monthly mortgage payment enough to pass.  These are numbers any Loan officer can estimate and work up before an offer is made.  Granted, the appraiser could skew those figures but it’s doubtful they’ll be terribly different than the ones supplied at the beginning. 

How Does My Buyer Qualify?

Other than the details listed above, qualifications for this loan are very similar to a FHA purchase of a single family home with one remaining MAJOR detail to take note of.  Whenever you have a buyer purchasing a multi unit property, they will need to prove assets to cover their 3.5% down payment PLUS 3 months’ worth of reserves.  Gift funds are not allowed for reserves, but can still be used for the down payment.

And finally, FHA is still an owner occupied only program.  Provided your buyer will be occupying one of the units attached to the multi family home, they could well be on their way to not only homeownership but the cash flow associated with being a real estate investor!

Interested in other FHA programs?  Check out the FHA 203k!

So, if you find prospects saying things to you like: I’ll think it over and get back to you. I need to talk it over with my wife. Call me next week and we’ll set up an appointment. You need to listen and hear what motivates them and determine what it was that motivated them to purchase a home in the first place.

Your job is to uncover and satisfy the Top 3 that are most important to them. Below is my list and a few additional questions you should think about asking.

1) CONVENIENCE: They prefer a home that saves time or simplifies their life. Are they currently commuting and will this shorten their time spent on the road? Or maybe it brings them closer to family and friends they enjoy spending time with.

2) ENTERTAINMENT: They need and want a home that will bring enjoyment or pleasure to them and for their guests. Is a large famiy room or game room important to them or maybe a large kitchen for entertaining?

3) SECURITY: They want to feel secure and free from fear. This would definitely fall under the category of location. Where is that they feel most comfortable and what do those surroundings look like?

4) PRESTIGE: They are looking for success or rank. This is a specific buyer that’s interested in the perception of others.

5) RECREATION: They want to be able to unwind and enjoy. What do they spend their free time doing? hiking, biking, playing football with the kids? What size backyard do they need? How close to the Park do they need to be?

6) VALUE: They are attempting to find a home that will make them money. This is usually a given, especially due to our current market and the belief that there are deals to be found everywhere.

7) ECONOMY: They are looking for a home that will save them money and fit into their budget.

8) HEALTH: They are looking for a home that is free from problems or abnormality.

9) PRIVACY: They want freedom from invasion of others. Are they interested in a gated community or possibly a home on several acres that offers privacy and seclusion?

10) AESTHETICS: They want a home that has style and is environmentally pleasing. Go green!

11) SAFETY: They want to be safe from risk of injury, danger or loss.

And finally…

12) COMFORT: They are looking for a state of ease & satisfaction. Comfort is described as a “state of physical relaxation.” It’s no surprise that the term “comfort food” refers to foods consumed to achieve some level of improved emotional status. It’s the same when your client is considering a purchase. You just need to find your prospects “comfort food” when it comes to a home. What is it that makes them feel and look physically relaxed?

Owning a home has always been the American Dream. Today there are a multitude of reasons why that dream can and should become a reality for many Americans. If you can identify what motivates your clients and help them understand the benefits to homeownership, you’ll be that much closer to helping them purchase a home!

Do you have any motivating factors you could add to the list? I’d love to hear them so please share!

If you’re not familiar with the FHA 203k mortgage, it’s a product that was designed to help FHA borrowers purchase homes that require repairs.  They are able to repair the home after closing and finance the repairs along with their FHA loan under one mortgage.  This differs from a typical FHA loan where the lender will require that the condition and value of the property provide adequate loan security prior to closing.

The FHA 203k has earned the reputation as being difficult to close and time-consuming.  Unfortunately, it’s only difficult if your Loan Officer is inexperienced and fails to set the proper expectations from the onset.  As far as being time-consuming, the process does typically take 45-60 days due to the fact that there are contractors and other third parties involved that require a little extra time.

How Can You Use an FHA 203K Rehabilitation Loan?

FHA 203K renovation loans are used in three different ways:

1. To purchase an existing home (and the land attached to that home) to renovate it.
2. To payoff existing debt on a current residence and renovate it
3. To purchase an existing home with the intent to move it to a new piece of land in a more preferred location.

What Can You Do With an FHA 203k Mortgage?

You can take a home that looks like this:

To a home that looks like this:

The eligible improvements allowed on FHA 203K loans are numerous and extensive. About the only thing HUD frowns on are luxury improvements that are not going to be a permanent piece of the property. That means your plans for a hot tub with a 42′ inch plasma TV and a built in beverage cooler are not going to fly past the underwriter most likely. Here are just a few of the common and not so common things FHA 203K borrowers use the versatile loan for:

1. New freestanding appliances
2. Bathroom remodels
3. Master bedroom remodel
4. Upgrading HVAC
5. Adding energy efficient improvements
6. Wells and septic repair and upgrades
7. New siding
8. Interior painting
9. Exterior painting
10. Attic build-outs
11. Waterproofing the basement
12. Creating a media room
13. Adding a 2nd floor
14. Total renovations
15. Finishing the basement
16. Bedroom additions
17. Neck deck / patios
18. New hardwood flooring
19. New doors and windows
20. Upgrading plumbing and electrical
21. Opening up the floorplan
22. New granite countertops
23. Vaulting the ceilings
24. Going GREEN!
25. New fixtures for bathtubs, sinks and kitchens
26. Making a house handicap accessible
27. Getting a condo or house ready for a new college student
28. Solar panels
29. Low flow toilets and shower heads
30. Creating a new master bedroom area
31. Much, much more…

As with anything, the success of this program is only as good as the interest and dedication of the parties involved. And I’m sad to say that in the past, the FHA 203k wasn’t as easy as it should have been for homeowners to complete renovations in a timely and cost effective manner.

But when the players are all performing correctly and working together to create a positive and rewarding experience; the end result is a wonderful and gratifying process to watch unfold.

You may think what I’m about to say will be earth shattering, mind blowing or some other embellishment of reality.

No. It was pretty simple and yet revolutionary in our industry. Here’s what happened:

With no computer, no MLS access around her at the time, she starts (again over the phone) verbally walking the person through the house starting from the front door to the spiral staircase.

She brought them up the stairs to some of the rooms where walls had been removed from a renovation a few years ago and where the new ones currently are. She got down to the nitty gritty detail of the upstairs bathroom window sill being slightly chopped off because they wanted the cabinet drawer to open all the way.

Bottom line: she knew this house like the back of her hand.

Was this just luck that the address being inquired upon was one that she had been in before multiple times? Absolutely not. I know this because this wasn’t the first time this has happened before with this agent.

Intentionality

She lives and breathes in her expertise. She’s passionate about the area. She knows her inventory. She understands her market and her audience. She knows about the random community gardens going on downtown. She knows about the rehabs going on down the street and the little areas that the general contractor may have cut corners.

This agent is legitimately a downtown specialist and focuses her attention on being the best damn agent in the older neighborhoods of Colorado Springs.

Brian from 1000watt talks about this in his article, Online real estate listings: It’s time to clean up our act. In reference the “premier” buyer’s agents suggested on ZIllow for the neighborhood he lives in, he mentions this:

“But then there’s problem #2: None of these agents truly knows this neighborhood.” (for problem #1 go read the article… it’s worth it.) He knows this because it is his neighborhood and he’s “Never seen a for sale sign with their name on it. Never seen their card at an open.”

We need to think of this industry in reference to the people we are serving and treat them like we would like to be treated if we were in their shoes. Let’s not kid ourselves into thinking we are really experts in everything Colorado Springs regarding buying and selling properties because we have access to the MLS data or something.

If you were a person living or looking in downtown, who would you want to work with? The agent who is a generalist “expert” in Colorado Springs, or a person who lives and breathes the type of real estate you’re potentially going to be involved in?

In the words of Brian again: “let me be clear: this has got to stop. These are homes, folks, not sweaters. Having your inventory shit together matters.”

What does this mean for buyers?  Only time will tell as all the details have yet to be ironed out, but it’s easy to see that the ability for buyers to qualify for a mortgage continues to tighten.

In the meantime, reports prove that the housing market isn’t just bad, it’s really bad and only getting worse.  In fact, U.S. housing prices have fallen further during this economic downturn (26 percent), then they did during the Great Depression (25.9 percent).  Ouch!

See the “12 Signs That the Worst Housing Collapse In U.S. History Is Getting Worse” if you’re not depressed enough already for a Monday morning.

So after researching topics for my weekly update and feeling a little blue, I thought we could all use some GOOD news to share with our prospects and clients.  Enough with the doom and gloom, it’s important we talk about the positives (and yes…there are quite a few) within the market right now.

Steve Harney and the crew at Keeping Current Matters put together a terrific article last week titled “The Cost of Waiting for Prices to Fall” that I thought deserved attention. 

According to The National Association of Realtors (NAR) 4th quarter housing research report,  home sales rose 15.4% in the 4th quarter over the 3rd quarter. They also showed that prices remained stable during the year.  Hmmm…not exactly what buyers are hearing on the news now is it?

Couple that with the news from Freddie Mac in their Primary Mortgage Market Survey that the 30 year fixed rate mortgage was at 5.05%, their highest levels since April 2010 and you have the makings of new found buyer motivation.

Now just in case you’re still scratching your head and wondering how this can be a motivator for buyers, here it is:

With prices remaining stable, but interest rates dramatically rising over the last 90 days, let’s take a look at what that means to a buyer looking to purchase a home this year.

$89.44 per month translates into $1073.28 per year or $32,198.40 over the life of their loan!  That figure can put a serious dent in anyone’s budget. 

My take:  Buyers might think they should wait until prices bottom out, but waiting for the best price might actually end up costing them more money.

Based on price plus interest rates (so total cost for that home) they would need prices to drop 5% over the next 90 days to make up for the half point uptick in rates we’ve seen in the last couple of months.  I don’t know about you, but believing prices will drop 5% over the next 90 days is pretty farfetched, even given our current market.

Your Opportunity:  Help buyers understand that even if prices fall but rates continue to rise, the monthly payment and cost of that house is significantly impacted.  

This is important information to have at your next buyer’s consultation, when you’re making follow up calls today or posting to your blog or social media networks as you work to get the word out that Yes Mr. & Mrs. Buyer, now is a GREAT time to buy and waiting…well that just might cost you more than you were bargaining for!

Frustrating, challenging, overwhelming – a few of the words we could use to describe the mortgage industry. So how can you as an agent keep up and avoid those last minute headaches?

Not only are our clients looking for knowledge and advice, but they’re looking for certainty as well. Certainty comes from properly setting expectations and knowing that our processes can control to some degree our environment and outcome.

I’ve put together the top challenges we’re facing in an effort to help you better understand what our underwriters are looking for when they review a file. The better you understand; the better chance you have of helping your clients recognize the why behind the documentation the lender is asking for.

1. Does the occupancy make sense? We’ve all heard the stories of investors acquiring properties by fraudulently claiming they’d occupy the property as their primary residence. That’s not what I’m talking about in this instance.

In the particular situation, an example might be: Your client has just been transferred from Denver to Colorado Springs. They’ve decided to retain their property in Castle Rock and purchase a new home in Colorado Springs. While their intention is to occupy both properties (husband is still working in Denver) as their primary residence, guidelines are very specific how they must purchase this property. A 2nd or Vacation home is a home that is 50 miles away from your current primary residence. Since the two homes are within 50 miles, this is not an option. The only option would be purchasing the property as a Non-Owner Occupied or Investment Home.

2. Are the seller contributions in line with the loan program/occupancy? Dependent on the loan program, allowable seller contributions can vary from 2 – 6%. It’s always advisable to have this conversation with your Loan Officer prior to making an offer. The last thing any of us want is to leave money on the table.

3. Is the appraisal satisfactory? A minimum of two comparables within 90 days are required or an appraisal review will be required. Are the comparables within the required distance? In suburban, within 1 to 2 miles. In Rural, within 5 miles. Also, at least 1 current listing or pending sale must be provided.

4. Is the borrower/seller the same on the Purchase Contract, title and appraisal? I recently had a situation where 2 weeks into the contract, the seller decided to transfer title. And it wasn’t just transferred once, but three times within a matter of days. Can you imagine the tailspin this set our underwriter into? I set out to determine what the situation was and after much digging, found that it was as “simple” as investor A (our seller of record) transferring title to investor B who had supplied the initial funds to purchase the home. Investor B then transferred title from himself, to him and his wife and then ultimately into his Trust.

The moral of this story: a title transfer of any kind is a BIG deal. Discuss it immediately with your Loan Officer!

5.  Is the client’s income declining? This can be a deal killer and an important issue to watch out for! As companies cut their overhead; so goes overtime, bonuses and even consistent weekly hours. Declining income is a hot button for underwriters and lenders right now so your Loan Officer needs to dig deep when it comes to the last two years of income. This goes for W-2 and Self-Employed borrowers.

While the above doesn’t cover absolutely, positively every circumstance that you’ll ever run into, it provides a general synopsis of the top problems we’re currently encountering.

What complications have you recently dealt with and were you able to overcome them? The more stories we can share, the better equipped we’ll all be at navigating through those waters when the time comes!

For example: There’s no point writing up an offer at midnight for a buyer when this project isn’t on an approved list and the project wouldn’t qualify even if it was submitted for review.

Better to be safe than sorry! Recent changes to the condominium approval/review processes have made it is absolutely imperative that you understand what type of property you are dealing with BEFORE you move forward with listing or selling a property.

Before we discuss what you need to know to differentiate a condo from a townhome, it’s essential to understand the true description of a condo.

The definition of a Condominium: A form of ownership where units are owned by individuals but the land and common areas are owned jointly with all owners.

Sounds a lot like a townhome doesn’t it?  That’s what makes defining a condo so tricky!

So what should you do?

1. Do not accept MLS information or verbal information.  Get a copy of the legal description.

Blindly accepting what you read on the MLS listing or what the current owner says isn’t smart.  Very few agents or owners have actually READ the legal description.

2. Do NOT rely on the project name for determination.

Many projects have misleading names.  The developer names the project “Shady Pines Townhomes” so people assume that because the word “Condominium” isn’t mentioned that it’s not a condo and doesn’t require project approval.  I’ve seen this mistake made time and time again.

3. READ the legal description – Does the legal description of the unit include the lot?

If not, you probably have a condominium form of ownership.  Check the project documents.

NOTE: There is a special exemption from project approval for “Site Condominiums” defined as detached units with no attached/shared garages etc.  Site Condos are typical for only a few states.

While there are many other “hiccups” you can encounter when it comes to condo financing, these initial steps will allow you to clearly define what type of property you’re dealing with.

For a copy of our condo definition checklist, click here to download.

FHA extends suspension of ‘anti-flipping’ rule for another year

Good news for investors and buyers!  FHA has decided to extend its suspension of the anti-flipping rule through the end of this year.  Set to expire at the end of the month, the waiver now goes into effect February 1^st.  Without the extension, many investors would have found their pool of buyers shrink significantly.  With the waiver, investors can now continue to buy and flip a property in less than 90 days and make FHA financing available to potential buyers.

The idea was to prevent speculators from defrauding the government through quick flips of houses – often involving straw buyers, possible shoddy work and corrupt appraisers – at wildly inflated prices.  The unfortunate result was how many buyers it pushed out of the market and how many homes were left ineligible for FHA financing.

Vicki Bott, deputy assistant secretary for single-family housing at the FHA, confirmed in an interview that the agency expects to continue the policy for another year. Not only have first-time buyers responded overwhelmingly to the opportunity to buy “turnkey” renovated homes with low down payments, she said, but they have performed well on their mortgage obligations.

“Obviously we have concerns about flipping in general,” Bott said, but the FHA has seen none of the fraud problems, defaults and re-foreclosures that cost the agency millions in insurance payouts in earlier years.

Keep in mind, just because FHA is ok with the ruling doesn’t mean your lender is.  It’s always a good idea to have a conversation with your lender before writing an offer on a property meeting these criteria.

Fannie Mae Flex 97 is back?  Not exactly…

There’s been a lot of talk about the Fannie Mae 3% down program known as the “Flex 97” making a comeback.  As of December 13, 2010 Fannie Mae will no longer use the verbiage “flexible mortgages” but the benefits behind the Flex 97 will remain.  Fannie will continue to allow for a smaller down payment that rivals FHA.  They are also allowing for flexible (errr….accommodating) sources of funds for the down payment.  This program is a perfect alternative for buyers with stellar credit that want to avoid the costly up front mortgage insurance included in an FHA loan.

It’s helpful to understand what are acceptable sources of funds for down payment a closing costs when you’re discussing this program with clients.

Acceptable

• Deposit Accounts, Vested Retirement Accounts, Stocks, Bonds, Trust funds
• Gifts (minimum investment requirements)
• Sale of Asset (Home, car, boat – proof required)
• Secured Loans: Vehicle, 401k, Home Equity
• Business Assets: Accounts (with Accountant Letter) or sale of assets
• Rent-to-Own: Credit toward downpayment cannot exceed the difference between Market Rent and the Actual Rent paid for the last 12 months.
• Seller Contributions: 2%, 3%, 6%, or 9% depending upon LTV & Occupancy
• Down Payment Assistance: Grant Funds or Community Loans

Unacceptable

• Undisclosed Interested Party Contributions
• Payment Abatements
• Sweat Equity – This is complicated – sometimes yes & sometimes no
• Funds that have not been vested
• Personal Unsecured Loans

So you can’t borrow money from your sweetie without a gift letter, but who really did that anyway?  We’ve always needed a gift letter to prove source of funds so Fannie adding that to their guidelines really isn’t a change or a surprise.

I’d encourage clients to look into this option and compare the monthly payment and overall cost to an FHA loan.  They might be pleasantly surprised at the savings!

This trend will probably continue.

So, if I was a potential house buyer:

1) I could find the house I want online.

2) I could call the listing agents to let me in the homes I picked out.

3) I could get all of the fully publicly available contracts from the Colorado Real Estate Commission.

4) I could negotiate the price of the house down 3%.

5) I could even pay an attorney some minimal fee to look over the contract to make sure it is all good.

I am not one who completely believes that the buyer’s agent is going out of style, but what do you think? What do you bring to the table as a buyer’s agent other than the MLS?

Loan Fees Rising –

Fannie Mae has followed her brother Freddie Mac and will increase pricing and what translates into interest rates as of April 1, 2011.  Let me explain.

Anyone buying a home with a loan through Fannie Mae or Freddie Mac is subject to what is called “risked based pricing.”  This is similar to auto insurance and simply means that we all start with the same base rate but subject to your current circumstances, your rate could be significantly higher than the great rate your neighbor qualifies for.

The new adjustments will affect anyone utilizing conventional financing.  The break down looks like this:

For homebuyers interested in a 30 Year Fixed Conventional Mortgage with a less than 30% down payment, there will be a 25% increase in the fees associated with their interest rate.  The adjustment to their rate will also be dependent on their FICO score and could very well spell trouble for client’s borderline in their current qualifications.

The IRS could delay your closing!

Delays within the mortgage process seem to be common and typical these days.  So is it any surprise that there’s a new wrinkle within the system?

If you’re working with a self employed client you COULD see a delay.  As you’re aware of by now, all lenders require a copy of the clients tax transcript; a document they receive directly from the IRS through a signed 4506-T.  This allows the lender to verify that what was submitted to them is the same document submitted to the IRS.

Here’s where the problem lies:  The IRS has communicated that they will not process itemized tax returns until the end of February and probably won’t post them until March.  This means that if your client’s lender is requiring 2010 income to qualify, you may not be able to close until that income is posted and the 4606-T can be ordered.

As I said, this isn’t an absolute but it definitely warrants a conversation to determine whether this could create a potential delay.

For a FREE copy of my checklist “How To Prepare For Your Loan Application,” click here.  (and feel free to swipe it and make it your own!)

I agree.

I’m not sure what the hangup is, but I hear many agents struggling to get business and yet there is an incredible opportunity in Colorado Springs to connect with your people, generate trust, build relationships, and ultimately help people make better decisions about their living.

From a blog post from the Geek Estate Blog, 178 million people watched 33.2 billion videos in the month of December alone, with the average user watching 187 videos per month in the U.S. (and these are numbers from 2009). Also, from a really cool Infographic in a Mashable Article entitled, “Are We Too Obsessed With Facebook,” a record breaking 750 Million photos were uploaded to Facebook over New Year’s Weekend.

Do see a trend here? Why are we obsessed with videos and pictures? Because they tell stories. Stories about life, stories about cool kitchens that my wife wants to have, stories about a couple finding a place to call home, stories about the smokin’ deal around the corner.

Kinda like what Donny Coram is doing with video and Foreclosures. Kinda like what Hannah Parsons is doing with pictures and her cool urban clients. Kinda like what Laurie Stahle is doing with Bad MLS Photos on Facebook.

And as 1000watt says, “We have argued before that every real estate brokerage and brand should think of itself as a media company. That’s not easy, of course. But it’s necessary.”

Yes, it is not easy. But yes, it is necessary.

Are you ready to open the door to connecting with your people?

Read the 1000watt article mentioned above. Jot down some ideas on ways to engage with a niche of people. Then, give me a ring and I’ll help you get started with the right platforms and the right tools.

The Week Ahead -

How about some good news for a change–the economy may be improving!  Last Friday’s Jobs Report didn’t meet the expectations set, but the prior month’s readings did show more job growth than previously reported. 

For us in the mortgage and housing world, this is good news on the housing front.  Once people feel better about keeping their job or getting a new job, purchasing activity will rise, and values will follow.  But on the other side of the coin, as the labor market and economy improve, mortgage rates will have to gradually rise as well.

So will interest rates actually improve over the short term?  It appears we might be in for a short ride to lower rates.  As a mortgage professional I strongly advise my clients to lock in their rate as soon as possible unless they enjoy what has become the mega roller coaster ride known as interest rates.

More Good News!

The mortgage insurance tax-deductibility law has been extended through 2011!  This means that mortgage insurance will continue to be a tax deduction for homeowners through the end of this year.  Here are the basic requirements:

• Eligible borrowers with adjusted gross incomes up to $100,000 may be able to deduct 100% of the MI premiums paid in 2011.

• Deductions are phased out in 10% increments for borrowers with adjusted gross incomes between $100,000 and $109,000.

This extension comes as Congress recognized the need to pump as many homebuyers into the market as possible.  The law was set to expire at the end of 2010.  Make sure your buyers consult their tax advisors concerning applicability of this deduction to their circumstances under the Internal Revenue Code and the specifics set above.

Stocks finished 2010 strong, with the S&P 500 gaining 13%, thanks to QE2 and it appears they are starting 2011 where it left off.  With the economic stimulus hitting the economy, there is a sense that economic growth may pick up more than previously expected.  And this growth, over time, will lead to gradually higher rates.  Will mortgage rates move dramatically higher in the near term?  We think not, but at the same time rates probably won’t get that much better either and any improvement may be short lived.

On Friday – we will get the Jobs Report and this one may have a big impact on all the markets.  Expectations are for 135,000 jobs to be created in December.  If this report comes in beneath expectations, Stocks could take a breather from their rise and allow for some bond pricing improvement.  But should the number beat expectations, it is very tough to see Bonds making any meaningful improvement as continued signs of US economic growth will weigh on prices.

We will continue to keep a close eye on the bond market and it’s affect on interest rates.  Always keep in mind that markets can turn on a dime and clients not locked in are subject to qualifying at those higher rates.  We’ve discussed the impact before on your clients buying power and the disappoint that comes with feeling as if they missed the boat on lower rates.  Make sure they understand the consequences of not locking in a rate before the ship permanently sails!

Which one is your favorite?

Leave a comment!

Are you lead-generating or trust-generating?

Here’s our wrap-up of our 12 days of iPhone and Android Apps for Real Estate Agents! You’ll find some different apps in here that will apply to your business… Not your standard mortgage calculator or Zillow apps…

Which ones do you like? Let us know at the end!

iPhone Apps Day 12 | FieldForce December 24, 2010 By Tucker Wannamaker Leave a Comment (Edit) FieldForce is a new app on the market this month and is bringing the ability for team collaboration and syncopation up a notch. Since going live in the app store, it has gotten almost all 5 stars. With this app you can stay organized, share contacts, to-do items, keep in close contact with your … [Read more...] Day 11 | QuickMark December 23, 2010 By Tucker Wannamaker 1 Comment (Edit) Over the past 10 days, all of our posts have been tagged with QR Codes… And they are all the buzz right now. I wrote a little blog about QR codes if you want to check it out. I’ll also be writing a blog about ways Realtors can use QR codes in your real estate business coming up soon.  In the mean … [Read more...] Day 10 | Meebo December 22, 2010 By Tucker Wannamaker Leave a Comment (Edit) Many of us have used IM, or “instant messaging,” before. AIM, Google Talk, Facebook Chat and many others have these capabilities of connecting with people in real time in the online space. Some people use them on websites for a live chat feature (look to your right) to let people browsing your site, … [Read more...] Day 9 | SugarSync December 21, 2010 By Tucker Wannamaker Leave a Comment (Edit) There are quite a few file sharing/storage apps out on the market right now. I’ve tested some of the major ones, Dropbox | Box.net | SugarSync. Personally, I’ve found that SugarSync has more bells and whistles, a better free plan(FYI: scroll down a little and you’ll see the completely free plan as … [Read more...] Day 8 | 3 Radical Photography apps December 20, 2010 By Tucker Wannamaker Leave a Comment (Edit) Here are 3 killer apps to improve your photography skills on your iPhone. 1) Video Panorama – $1.99 Check out this cool app to be able to create excellent horizontal and vertical panoramic pictures of your listings or cool views. Make your own quick virtual tours for your clients to check out … [Read more...] Day 7 | Remember the Milk December 19, 2010 By Tucker Wannamaker Leave a Comment (Edit) Everybody has their way of to-do lists. Some use planners, some use sticky notes, some use Outlook… But my problem is that I remember things I need to do at the most inopportune times. If I could have a to-do system that syncs with everything(except paper) and can be everywhere I go, then sign me … [Read more...] Day 6 | Evernote December 18, 2010 By Tucker Wannamaker Leave a Comment (Edit) A great quote I heard once, “The mind is for creativity, not for storage.” I think Einstein said it, but I’m not sure… Nevertheless, I agree in many ways; I know I can’t remember everything and in fact I try not to. I need some good tools to help me remember so I can use my precious brain power … [Read more...] Day 5 | Tips & Tricks – iPhone Secrets 1&2 December 17, 2010 By Tucker Wannamaker Leave a Comment (Edit) Are we the type of people who would buy something just because of the packaging and sexiness? Definitely not… We (of course) buy technology because of it practical business use… ;) Well, whichever category you fall in, these two apps will have something for you to learn more about your cool, … [Read more...] Day 4 | Pulse December 16, 2010 By Tucker Wannamaker 1 Comment (Edit) How do you read your news and follow your favorite websites? Do you still read the (gasp) paper? Do you have to go and check yourfavorite sites all the time to see if there is anything new and relevant? Why not have the news come to you! 1st > Watch this video about what and how RSS … [Read more...] Day 3 | Gift Plan December 15, 2010 By Tucker Wannamaker Leave a Comment (Edit) 12 Days of iPhone Apps for Realtors: Day 3 | Gift Plan Many of you give gifts to your clients for Christmas, birthdays, anniversaries, etc… I’m not sure about you, but I like to get something as relevant as possible to them, you know… something they may actually like or appreciate. This app … [Read more...] Day 2 | Vlingo & Text’nDrive Lite December 14, 2010 By Tucker Wannamaker 1 Comment (Edit) 12 Days of iPhone Apps for REALTORS: Day 2 | Vlingo & Text’nDrive I’m sure that many of you high energy, mobile people have trouble not succumbing to the urge to text/email while driving… After all, it is illegal in Colorado according to House Bill 1094, (and more importantly dangerous). And … [Read more...] Day 1 | JotNot Scanner Pro December 13, 2010 By Tucker Wannamaker 5 Comments (Edit) JotNot Scanner Pro ($.99 on sale now) – Now, I know you’re probably not the type of person whose receipts and papers are all messy like this. But just in case you are (just like me), you’ll find the JotNot Scanner Pro to be an incredible way to keep your papers and receipts pretty and organized … [Read more...]

Android Apps Day 12 | Jorte December 24, 2010 By John Bunka 1 Comment (Edit) Ideally your smart phone is there to help you get things done, accomplish tasks faster and hopefully help you in one way or another. As a real estate agent we may have tons of different schedules to keep track of, from brokerage meetings, tech classes and showings. Having all this info in your … [Read more...] Day 11 | Android Manager WiFi December 23, 2010 By John Bunka Leave a Comment (Edit) Android Manager WiFi Backup, backup, backup! It can never be said enough, whether its your personal computer, work computer and now your phone backing up is something everyone should do on a regular basis. Google backs up your contacts, emails, calendar etc but what about your pictures of … [Read more...] Day 10 | AppBrain December 22, 2010 By John Bunka Leave a Comment (Edit) The Android Market is a fantastic place to get apps but it’s not always the best when you need to research what apps do and if they will be relevant for your business. Most people turn to word-of-mouth, blogs like this one, or research it on Google itself. This is where AppBrain reigns supreme, … [Read more...] Day 9 | Google Updates Galore December 21, 2010 By John Bunka Leave a Comment (Edit) For Christmas, Google and a few app publishers are releasing fantastic updates for your Android phone. How do I update my Android? Go to the Market Click your ‘menu’ button Click ‘My Apps’ 2.1 Users click each app that has an update 2.2 Users click update all to update everything at … [Read more...] Day 8 | Twitter Must Have’s December 20, 2010 By John Bunka Leave a Comment (Edit) These tools are for more than just tweeting and updating your status! You have to learn to keep up with your social reputation and manage your online presence as well. Thanks to new super phones like the Androids and iPhone you can do so from the palm of your hand while your on-the-go, showing a … [Read more...] Day 7 | Dropbox December 19, 2010 By John Bunka Leave a Comment (Edit) Dropbox is a free application and web service that lets you sync your files, pictures, backups and more instantaneously into the cloud and onto other computers that you may have Dropbox installed on. Dropbox is a must have for any business looking to sync files between computers, locations and even … [Read more...] Day 6 | CamScanner December 18, 2010 By John Bunka Leave a Comment (Edit) Have you ever needed a scanner and all you had was your phone? CamScanner turns your phone into a scanner to scan and manage your paper documents, whiteboard discussions, receipts and anything else you would need to scan easily. The smart image cropping and enhancement algorithm ensures the scanned … [Read more...] Day 5 | Realtor.com December 17, 2010 By John Bunka 3 Comments (Edit) This app is relatively new to the Android market and prior to coming out was the envy of Android users. It brings fully up-to-date listing data directly into the agents hands so that you can provide real time data to your clients while on the road. It will have as many pictures as the listing agent … [Read more...] Day 4 | 5 Must have Utility Apps December 16, 2010 By John Bunka 1 Comment (Edit) 12 Days of Android Apps for Realtors: Day 4 | 5 Must have Utility Apps. Astro File Manager If you use your phone to store everything or use it as a thumb drive you can now use Astro File manager to attach those files to email, your dropbox, save files and manage where they are … [Read more...] Day 3 | WaveSecure December 15, 2010 By John Bunka Leave a Comment (Edit) 12 Days of Android Apps for Realtors: Day 3 | WaveSecure WaveSecure by McAfee lets you backup, restore, locate your phone, track your phone, lock and wipe your phone if it is permanently lost or stolen. WaveSecure has also been voted one of the best Android apps this year as it works just … [Read more...] Day 2 Evernote December 14, 2010 By John Bunka Leave a Comment (Edit) 12 Days of Android Apps for Realtors: Day 2 Evernote Evernote is an extension to your brain and it does just that. Anything that you consider noteworthy can be placed into Evernote, categorized and tagged with keywords so you can easily find it later from any device. Evernote has OCR built in, … [Read more...] Day 1 Chrome To Phone December 13, 2010 By John Bunka Leave a Comment (Edit) 12 Days of Android Apps for Realtors: Day 1 Chrome To Phone Chrome to Phone Have you ever come across something in your browser and wanted it on your phone? This could be everything from directions, links, web pages, facebook postings and more. Chrome To Phone solves this dilema with an easy … [Read more...]

]]> http://springsrealestatenetwork.com/2010/12/29/wrap-up-of-12-days-of-android-and-iphone-apps-for-realtors/feed/ 0 http://springsrealestatenetwork.com/2010/12/29/wrap-up-of-12-days-of-android-and-iphone-apps-for-realtors/ http://feedproxy.google.com/~r/Springsrealestatenetworkcom/~3/TX3Q0ufSagY/ http://springsrealestatenetwork.com/2010/12/27/important-fannie-mae-updates-for-2011/#comments Mon, 27 Dec 2010 17:16:52 +0000 Rebekah Radice http://springsrealestatenetwork.com/?p=2453 Fannie Mae has made four major updates to their guidelines and all except one go into effect in 2011.  There have been a considerable amount of changes this year and these are no less important.  In fact, this update is so massive, Fannie Mae has issued answers to your Frequently Asked Questions. Here are the top four you need to know about:

Project Litigation – Effective Immediately

Currently, mortgage loans in projects with litigation are ineligible for delivery to Fannie. Recognizing that various types of litigation will have differing impact on a project, the current policies related to litigation are revised as follows:

• Any project (condo, co-op, PUD) for which the Homeowners’ Association or Corporation is named or for which the Sponsor or Developer is named as a party to pending litigation that relates to the safety, structural soundness, habitability or functional use of the project remains ineligible
• Minor matters are not considered ineligible for projects, provided the lender concludes that the pending litigation has no impact on the safety, structural soundness, habitability, or functional use of the project. The following are defined as minor matters:
  • Non-monetary litigation involving neighbor disputes or rights of quiet enjoyment
  • Litigation for which the claimed amount is known, the insurance carrier has agreed to provide the defense, and the amount is covered by the insurance
  • The Association or Corporation is named as the plaintiff in a foreclosure action, or as a plaintiff in an action for past due HOA dues

If a lender is aware of pending litigation and is unable to determine whether the matter is minor, the lender may contact Fannie Mae’s Project Standards team to determine eligibility.

Unit Square Footage – Effective for loan applications on or after March 1, 2011

As of March, 2011 Fannie Mae is requiring that new condo projects that contain one or more units with less than 400 square feet of space be submitted to Fannie Mae’s Project Eligibility Review Service to determine eligibility.  More than likely this will result in condos less than 400 square feet ineligible for Fannie Mae financing.

Income Documentation – Effective for loan applications dated on or after December 13, 2010

For manually underwritten loans (these are loans that are ineligible through the Fannie MaeDesktop Underwriting system), the paystub must be dated no earlier than 30 days prior to the initial application date.  In addition, the paystub must include sufficient information to appropriately calculate income – otherwise, additional documentation must be obtained.

Foreclosure Waiting Periods – Effective on or after March 1, 2011

On February 1st the waiting period for a consumer to purchase a home after foreclosure increases from 5 years to 7 years.  This means clients have less than 2 months to take advantage of current guidelines.  However, there are exceptions to this rule, see my guide on how Derogatory Events will affect your clients here.

The bottom line, there are major changes coming in 2011 and your clients need to be aware of how they will be affected.  As an agent…if you know the rules, you’ll rule the real estate market in 2011!