Take Five and Stay Alive
A Health Tip with Ingo Logé
The economy. The recession. Our jobs. Our family. War. Inflation. Traffic. Those are just some of the things that can cause stress in our daily lives. But have no fear! When the stress-monster attacks, there's something quick and easy you can do to breathe easier...one nostril at a time.
As Fitness Forever founder Ingo Logé shares in the accompanying video, "Air is invisible food." And when it comes to fitness and nutrition, Logé definitely knows what he is talking about! As a personal training and nutrition expert with over two dozen years of real-life experience, Logé's client list reads like a "Who's-Who" in the United States, Canada and the United Kingdom. Watch the video to learn Logé's five minute breathing exercise...and then watch your stress melt away!
For more great tips from Ingo Logé, and to learn more about his products and services, visit www.myfitness4ever.com.
Monday, July 13, 2009
Thursday, July 9, 2009
July is Air Conditioning Appreciation Month
July is Air Conditioning Appreciation Month
Prepare Your Home for Hot Weather
Setting your air conditioner 5 degrees higher will save up to 20% on cooling costs.
Use fans to make indoor temperatures feel cooler, most ceiling fans use less energy than a light bulb.
Have your A/C unit serviced to cut up to 15% of your cooling cost.
Don't try to cool the great outdoors! Seal cracks, gaps, leaks and add insulation and/or radiant barrier to save up to 20% on home cooling cost.
Investments for Summer Energy Savings
Have your ducts professionally sealed to save up to $190 per year.
Install programmable thermostats and only cool the house when you're home-it can save up to $180 a year!
Replace incandescent light bulbs with CFL's or the new LED's to save on lighting AND cooling bills. 90% of the energy used by old incandescent bulbs produces heat, NOT light.
If your old AC breaks down, consider a high efficiency replacement. Replacing a 10 year old central AC unit with an Energy Star qualified model can cut 20-40% off your cooling costs.
Choose a Programmable Thermostat That's Right for You!
To decide which model is best for you, think about your schedule and how often you are away from home for regular periods of time-work, school, and other activities. Then decide which of the three different models best fits your schedule.
7 day models are best if your daily schedule tends to change, say if children are at home earlier on some days. They give you the most flexibility, and let you set different programs for different days.
5+2 day models use the same schedule every weekday, and another for weekends.
5-1-1 models are best if you tend to keep one schedule Monday through Friday, and another schedule on Saturdays and Sundays.
A/C Filters - The MOST Important Maintenance Task!
The most important maintenance task that will ensure the efficiency of your air conditioner is to routinely replace or clean it's filters. Clogged, dirty filters block normal air flow and reduce a system's efficiency significantly.
Some types of filters are reusable; others must be replaced. They are available in a variety of types and efficiencies. Clean or replace your filters every month or two during the cooling season.
Prepare Your Home for Hot Weather
Setting your air conditioner 5 degrees higher will save up to 20% on cooling costs.
Use fans to make indoor temperatures feel cooler, most ceiling fans use less energy than a light bulb.
Have your A/C unit serviced to cut up to 15% of your cooling cost.
Don't try to cool the great outdoors! Seal cracks, gaps, leaks and add insulation and/or radiant barrier to save up to 20% on home cooling cost.
Investments for Summer Energy Savings
Have your ducts professionally sealed to save up to $190 per year.
Install programmable thermostats and only cool the house when you're home-it can save up to $180 a year!
Replace incandescent light bulbs with CFL's or the new LED's to save on lighting AND cooling bills. 90% of the energy used by old incandescent bulbs produces heat, NOT light.
If your old AC breaks down, consider a high efficiency replacement. Replacing a 10 year old central AC unit with an Energy Star qualified model can cut 20-40% off your cooling costs.
Choose a Programmable Thermostat That's Right for You!
To decide which model is best for you, think about your schedule and how often you are away from home for regular periods of time-work, school, and other activities. Then decide which of the three different models best fits your schedule.
7 day models are best if your daily schedule tends to change, say if children are at home earlier on some days. They give you the most flexibility, and let you set different programs for different days.
5+2 day models use the same schedule every weekday, and another for weekends.
5-1-1 models are best if you tend to keep one schedule Monday through Friday, and another schedule on Saturdays and Sundays.
A/C Filters - The MOST Important Maintenance Task!
The most important maintenance task that will ensure the efficiency of your air conditioner is to routinely replace or clean it's filters. Clogged, dirty filters block normal air flow and reduce a system's efficiency significantly.
Some types of filters are reusable; others must be replaced. They are available in a variety of types and efficiencies. Clean or replace your filters every month or two during the cooling season.
Thursday, July 2, 2009
Area Fire Works and Festivities
Area Fire Works and Festivities
Fort Worth
Jul. 4, 2009 - Fort Worth's Fourth
Come celebrate Fort Worth's Fourth, Saturday, July 4, 2009, with an evening of free music and family fun along the Trinity River behind LaGrave Field. Jet Skis, watermelon, trolley rides, water wars and Battle of the Bands hosted by 95.9 The Ranch Radio. Watch the Cats play until fireworks start around 9:30 p.m.. It all starts at 5:30 p.m. Saturday, July 4. For more information visit www.streamsandvalleys.org or call 817 926-0006
Grand Prairie
July 3 & 4, 2009 - Lone Stars & Stripes Fireworks Celebration. Enjoy two full days of exciting live Thoroughbred racing and fun activities for the whole family including pony rides, a petting zoo, bounce houses, games, clowns, and more followed by our 20-minute fireworks spectacular choreographed to music. Plus, enjoy live music by Incognito on Friday, and Maiden Texas on Saturday in our Courtyard of Champions from 5p.m. - 11:30 p.m. Gates open early at 3 p.m. each day and the first live race begins at 5 p.m. Details may be found at www.lonestarpark.com
Bedford
Jul 4, noon-11 p.m. Concert, food, family activities, a parade, and fireworks will be at the Bedford Boys Ranch at 2801 Forest Ridge Drive in Bedford. Bring lawn chairs, blankets, and coolers. No alcohol, please. Admission is free, but there is no parking at the Bedford Boys Ranch, except for those with handicap signs or plates. Park at Pennington Field at 1501 Central Drive in Bedford and catch the shuttle for $3 per person.
North Richland Hills
Jul 4, 9:30 p.m. Twenty minutes of fireworks will take off at the North Richland Hills Village Center, 6351 Boulevard 26 in Richland Hills at the intersection of Highway 26 and Highway 183 inside Loop 820.
Irving
Jul 4, 5 p.m.-10 p.m. The Irving Symphony Orchestra will put on a concert starting at 8:30 p.m. Food and beverages will be available. No coolers or alcohol permitted. Admission is free. The concert and fireworks will be at Williams Square Plaza (5215 North O'Connor Boulevard) in Las Colinas in Irving.
Plano
Jul 4, 9:30 p.m. The city of Plano will have a fireworks show at the Oak Point Park and Nature Preserve at 2801 Spring Creek Parkway. Some food and beverages will be available for purchase. Free parking will be at Collin County Community College and First United Methodist Church of Plano. Radio station KLAK 97.5 will have a simulcast during the fireworks show.
Frisco
Jun 27-28. Pizza Hut Park in Frisco plays host to Celebrate Freedom 2008. For two days, three stages will be full of Christian rock groups and speakers. VeggieTales characters, inflatable rides and slides, jump rope demonstrations, dance teams, and cheerleaders are just some of the entertainment available. Admission is free, but parking is $10-15. Pizza Hut Park is at the intersection of Dallas Tollway and Main Street in Frisco, near the intersection of Dallas Tollway and Eldorado Parkway.
Granbury
Annual 4th of July Celebration - Hometown America
Start Date: July 4, 2009 8:00 am
Location: Granbury Historic Downtown Square
Contact Name: Chamber of Commerce Contact Number: 817-573-1622 Website: www.granburychamber.com
Description: Art & Craft Booths, Hometown Parade, Tom Ward Memorial Decorated Bike Contest, Live Entertainment at the Granbury Square Plaza, rockin' Rods Car Show, Old Fashioned Games at Shanley Park, Bulls and Broncs Rodeo at the Reunion Grounds. Talley Amusements Carnival Rides and Fireworks over Lake Granbury.
Fort Worth
Jul. 4, 2009 - Fort Worth's Fourth
Come celebrate Fort Worth's Fourth, Saturday, July 4, 2009, with an evening of free music and family fun along the Trinity River behind LaGrave Field. Jet Skis, watermelon, trolley rides, water wars and Battle of the Bands hosted by 95.9 The Ranch Radio. Watch the Cats play until fireworks start around 9:30 p.m.. It all starts at 5:30 p.m. Saturday, July 4. For more information visit www.streamsandvalleys.org or call 817 926-0006
Grand Prairie
July 3 & 4, 2009 - Lone Stars & Stripes Fireworks Celebration. Enjoy two full days of exciting live Thoroughbred racing and fun activities for the whole family including pony rides, a petting zoo, bounce houses, games, clowns, and more followed by our 20-minute fireworks spectacular choreographed to music. Plus, enjoy live music by Incognito on Friday, and Maiden Texas on Saturday in our Courtyard of Champions from 5p.m. - 11:30 p.m. Gates open early at 3 p.m. each day and the first live race begins at 5 p.m. Details may be found at www.lonestarpark.com
Bedford
Jul 4, noon-11 p.m. Concert, food, family activities, a parade, and fireworks will be at the Bedford Boys Ranch at 2801 Forest Ridge Drive in Bedford. Bring lawn chairs, blankets, and coolers. No alcohol, please. Admission is free, but there is no parking at the Bedford Boys Ranch, except for those with handicap signs or plates. Park at Pennington Field at 1501 Central Drive in Bedford and catch the shuttle for $3 per person.
North Richland Hills
Jul 4, 9:30 p.m. Twenty minutes of fireworks will take off at the North Richland Hills Village Center, 6351 Boulevard 26 in Richland Hills at the intersection of Highway 26 and Highway 183 inside Loop 820.
Irving
Jul 4, 5 p.m.-10 p.m. The Irving Symphony Orchestra will put on a concert starting at 8:30 p.m. Food and beverages will be available. No coolers or alcohol permitted. Admission is free. The concert and fireworks will be at Williams Square Plaza (5215 North O'Connor Boulevard) in Las Colinas in Irving.
Plano
Jul 4, 9:30 p.m. The city of Plano will have a fireworks show at the Oak Point Park and Nature Preserve at 2801 Spring Creek Parkway. Some food and beverages will be available for purchase. Free parking will be at Collin County Community College and First United Methodist Church of Plano. Radio station KLAK 97.5 will have a simulcast during the fireworks show.
Frisco
Jun 27-28. Pizza Hut Park in Frisco plays host to Celebrate Freedom 2008. For two days, three stages will be full of Christian rock groups and speakers. VeggieTales characters, inflatable rides and slides, jump rope demonstrations, dance teams, and cheerleaders are just some of the entertainment available. Admission is free, but parking is $10-15. Pizza Hut Park is at the intersection of Dallas Tollway and Main Street in Frisco, near the intersection of Dallas Tollway and Eldorado Parkway.
Granbury
Annual 4th of July Celebration - Hometown America
Start Date: July 4, 2009 8:00 am
Location: Granbury Historic Downtown Square
Contact Name: Chamber of Commerce Contact Number: 817-573-1622 Website: www.granburychamber.com
Description: Art & Craft Booths, Hometown Parade, Tom Ward Memorial Decorated Bike Contest, Live Entertainment at the Granbury Square Plaza, rockin' Rods Car Show, Old Fashioned Games at Shanley Park, Bulls and Broncs Rodeo at the Reunion Grounds. Talley Amusements Carnival Rides and Fireworks over Lake Granbury.
Monday, June 15, 2009
Going, Going, Gone - The Key to Peace of Mind before Bidding on Properties
Going, Going, Gone - The Key to Peace of Mind before Bidding on Properties
By Paige Tepping
RISMEDIA, June 16, 2009-Buying a home is one of the most significant decisions, as well as one of the biggest investments, a home buyer will ever make. With home prices down around the country, mortgage rates at record-level lows, an $8,000 tax credit for first-time home buyers and a surge in home auctions, buyers must be more educated than ever in going through the home-buying process. Home buyers are looking for peace of mind right now, and Pillar To Post’s home inspections give prospective buyers just that.
According to the Associated Press, home auctions have surged 47% since 2003, which opens the door to homeowners interested in buying a home at a bargain price.
“There is a huge inventory of homes on the market right now, which is great for buyers, but it should still be ‘buyer beware,’” says Trevor Welby-Solomon, Pillar To Post’s vice president, Technical Training, Support and Development. Home buyers must be cautious, because homes sold at auction are sold ‘as is;’ therefore, professional home inspections are a crucial element in the bidding process.
With the economic climate we are experiencing today, it is easy for buyers to say that money is tight and they don’t want to spend the $350-$450 it costs to get a home inspection, but Welby-Solomon says the exact opposite is true.
“Since credit is tight and home values have dropped, it is almost impossible to go back to the lender or bank and further define a line of credit to fix items within the home once you move in,” he says. Home inspections focus on the structural element or systems of the home and look closely at items regarding the health and safety of the occupants. “In addition to checking the major structural items within the home, home inspections also cover more common elements, such as the condition of the roof covering, leaks in the basement and the major mechanical systems (heating, cooling, electrical and plumbing).
“Home inspections take away the emotional aspect of the transaction as well as provide prospective buyers with an objective, third-party opinion of the building,” says Welby-Solomon, and are especially important for buyers looking to purchase a home through an auction.
“Home inspections are used to better educate buyers about their potential purchase and whether the price of the home is actually the final cost,” he says. While it may be appealing for buyers to bid low on a home, it is a good idea to have a sense of what your final expenditure will be once the home is yours.
“Since joining Pillar To Post in 1994, home buyers and sellers’ attitudes toward home inspections have changed completely,” says Welby-Solomon. “There is a much greater awareness of the value of a home inspection, and a lot of this has come about as younger buyers are coming into the marketplace.” As younger buyers are more research- and information-oriented, they are looking for more value and want to be more educated and informed in making decisions, he says.
While there are numerous good deals to be found in today’s market, home inspections give buyers peace of mind before actually buying the property.
“Don’t be afraid to ask if you may bring a third party with you to do a walk-through of the home before the auction starts,” says Welby-Solomon. “Home inspections allow prospective buyers to not walk blindly into a home auction and end up with a money trap that you have to keep throwing money into after purchasing.”
For more information, please visit www.pillartopost.com.
By Paige Tepping
RISMEDIA, June 16, 2009-Buying a home is one of the most significant decisions, as well as one of the biggest investments, a home buyer will ever make. With home prices down around the country, mortgage rates at record-level lows, an $8,000 tax credit for first-time home buyers and a surge in home auctions, buyers must be more educated than ever in going through the home-buying process. Home buyers are looking for peace of mind right now, and Pillar To Post’s home inspections give prospective buyers just that.
According to the Associated Press, home auctions have surged 47% since 2003, which opens the door to homeowners interested in buying a home at a bargain price.
“There is a huge inventory of homes on the market right now, which is great for buyers, but it should still be ‘buyer beware,’” says Trevor Welby-Solomon, Pillar To Post’s vice president, Technical Training, Support and Development. Home buyers must be cautious, because homes sold at auction are sold ‘as is;’ therefore, professional home inspections are a crucial element in the bidding process.
With the economic climate we are experiencing today, it is easy for buyers to say that money is tight and they don’t want to spend the $350-$450 it costs to get a home inspection, but Welby-Solomon says the exact opposite is true.
“Since credit is tight and home values have dropped, it is almost impossible to go back to the lender or bank and further define a line of credit to fix items within the home once you move in,” he says. Home inspections focus on the structural element or systems of the home and look closely at items regarding the health and safety of the occupants. “In addition to checking the major structural items within the home, home inspections also cover more common elements, such as the condition of the roof covering, leaks in the basement and the major mechanical systems (heating, cooling, electrical and plumbing).
“Home inspections take away the emotional aspect of the transaction as well as provide prospective buyers with an objective, third-party opinion of the building,” says Welby-Solomon, and are especially important for buyers looking to purchase a home through an auction.
“Home inspections are used to better educate buyers about their potential purchase and whether the price of the home is actually the final cost,” he says. While it may be appealing for buyers to bid low on a home, it is a good idea to have a sense of what your final expenditure will be once the home is yours.
“Since joining Pillar To Post in 1994, home buyers and sellers’ attitudes toward home inspections have changed completely,” says Welby-Solomon. “There is a much greater awareness of the value of a home inspection, and a lot of this has come about as younger buyers are coming into the marketplace.” As younger buyers are more research- and information-oriented, they are looking for more value and want to be more educated and informed in making decisions, he says.
While there are numerous good deals to be found in today’s market, home inspections give buyers peace of mind before actually buying the property.
“Don’t be afraid to ask if you may bring a third party with you to do a walk-through of the home before the auction starts,” says Welby-Solomon. “Home inspections allow prospective buyers to not walk blindly into a home auction and end up with a money trap that you have to keep throwing money into after purchasing.”
For more information, please visit www.pillartopost.com.
Friday, June 5, 2009
We've Moved!
We've Moved!
Texas Sold Team Realty, LLC has moved to a new office in Keller, Texas. Come by and visit us! Keep checking in for our GRAND OPENING RIBBON CUTTING CEREMONY in July.
New Address:
424 Keller Parkway
Keller, Texas 76248
Texas Sold Team Realty, LLC has moved to a new office in Keller, Texas. Come by and visit us! Keep checking in for our GRAND OPENING RIBBON CUTTING CEREMONY in July.
New Address:
424 Keller Parkway
Keller, Texas 76248
Can You Get a Loan Today?
Can You Get a Loan Today?
Changes in the real estate and mortgage markets have prompted many, including many in the media, to wonder, "Can you get a loan today?" For an answer to this important question, YOU Magazine turned to Barry Habib, an expert in the mortgage-backed securities market. Chairman of Mortgage Success Source and founder of Mortgage Market Guide, Mr. Habib has managed a hedge fund, authored a stock advisory newsletter, owned an insurance agency, and has been an avid real estate investor for many years.
Habib says that, yes, you can get a mortgage in today's market, but you have to understand that lenders have returned to a pre-2000 mindset – a kind of "common-sense lending" that seeks long-term success versus short-term profits. There's plenty of money available, says Habib, but your mortgage must make sense in today's terms, not the looser standards permitted by lenders in 2000 and 2001.
How Did We Get Here?
In 2000 and 2001, real estate was hot – make that white hot. According to the S&P/Case-Shiller Home Price Composite 10 Index, an index that follows home prices, values increased 21.5% from the years 1990-1999. During the first two years of this decade alone, home prices increased 23.6% for the same index. This resulted in a period of wildly loose lending guidelines that would ultimately fuel the subprime mortgage collapse in 2008.
In retrospect, it's easy to see, and even understand, the mistakes that were made during this unusual period of growth. Rapidly escalating home prices not only eased economic and personal financial woes, they invited opportunity and risk whose rewards, while hard to resist, couldn't possibly be sustained at such a high level. Nonetheless, increasing equity created flexibility that benefitted buyers and sellers alike – as long as property values continued to ascend.
During this time, borrowers with no jobs, no down payments, and poor credit histories could easily obtain financing. A host of exotic mortgage products flooded the market. And even if a borrower got into trouble, there was a multitude of options to help him or her climb out of the hole, including refinancing or even selling the property. A lot of people made a lot of money during this time.
But, as the real estate market began to turn and the economy began to suffer, home values slowed and then ground to a halt, and the true risk in the market was exposed. No longer supported by skyrocketing home values, borrowers had fewer options, lending guidelines tightened, adjustable rates adjusted, resulting in a crash in the market that is only now just beginning to turn.
What Does This Mean to Borrowers Today?
Simply put, home lending has returned to what insiders call a "full-doc world." This means lenders need proof, documented evidence that a borrower is creditworthy and likely to repay the loan. This creditworthiness is based on the four tenets of lending: the borrower's ability to pay, willingness to pay, equity in the transaction, and the property itself.
Ability to Pay
This is the documentation portion of the equation. In determining one's ability to repay a loan, it is now common for a lender to ask for recent paystubs, W-2s, and possibly tax returns in the case of a salaried employee. For self-employed borrowers and those earning commissions, tax returns for the two most recent years and a profit and loss statement for the current calendar year will likely be required. While certain exceptions may be granted, potential borrowers can further increase their chances of securing a mortgage by keeping their debt-to-income level below 45%.
Willingness to Pay
Repercussions of the credit crisis have made FICO scores more important than ever to lenders. In order to obtain the best interest rate and have a broader selection of loan programs from which to choose, potential borrowers should strive to keep their FICO score above 720.
Borrowers whose scores fall below 720 where the loan will be sold to Fannie Mae and Freddie Mac can expect risk-based pricing, which could result in either higher costs or higher rates. So, while it is possible to get a loan with scores as low as 620, programs other than Fannie Mae or Freddie Mac are probably the best path for a borrower with a lower score to take.
Equity in the Transaction
With the exception of mortgage programs guaranteed by the USDA and VA, no-down-payment loans have pretty much evaporated on a national level. Today it is expected that borrowers put a minimum of 3.5% down for an FHA loan and 5%-10% down for agency loans sold to Fannie Mae or Freddie Mac.
If someone is strapped for cash, however, it is still possible in the purchase contract to negotiate with the seller to pay a percentage of the closing costs, as long as it's within the program's limitations and the property appraises highly enough for this action to be permitted.
With the exception of the President's Home Stability Plan, it is no longer possible to refinance a loan without equity in the property. However, under this plan, millions of homeowners are expected to be able to take advantage of being able to refinance at a loan-to-value of up to 105% of the appraised value.
Cash-out refinancing has also been tightened, compared to just a few years ago. While pulling equity out of a home is still possible, the costs to do so have become more expensive for homes with a higher loan-to-value. Depending on the program, cash-out transactions have generally been limited to a maximum of 85% of the home's appraised value.
The Property
Home appraisals are also being more scrutinized today to ensure the value of the home is both fair and realistic for lender and borrower alike. On May 1st, new legislation (Home Value Code of Conduct or HVCC) placed a barrier between loan originators and appraisers for loans sold to Fannie Mae and Freddie Mac (legislation does not affect mortgages guaranteed by the FHA, USDA or VA.)
For those loans impacted by HVCC, all parties involved should be prepared for potential delays. If value conflicts occur, sellers, buyers, homeowners, and real estate agents must be prepared to provide information where needed.
In locations of the country where property values have been in significant decline, additional documentation may be required by the appraiser to help the lender justify the appraised value.
In Summary
Yes, getting a mortgage may be more difficult than it was a few years ago, but don't assume that you can't get one.
Reports suggest that over $2.7 trillion in loans will be originated in 2009 – that's over $1 trillion more than 2008. Contact the professional who supplied you with your copy of YOU Magazine. With interest rates at or near all time lows, lower home prices, and the $8,000 tax credit for first-time buyers, it's worth the time and effort to find out if you can benefit from common-sense lending in today's real estate market.
Changes in the real estate and mortgage markets have prompted many, including many in the media, to wonder, "Can you get a loan today?" For an answer to this important question, YOU Magazine turned to Barry Habib, an expert in the mortgage-backed securities market. Chairman of Mortgage Success Source and founder of Mortgage Market Guide, Mr. Habib has managed a hedge fund, authored a stock advisory newsletter, owned an insurance agency, and has been an avid real estate investor for many years.
Habib says that, yes, you can get a mortgage in today's market, but you have to understand that lenders have returned to a pre-2000 mindset – a kind of "common-sense lending" that seeks long-term success versus short-term profits. There's plenty of money available, says Habib, but your mortgage must make sense in today's terms, not the looser standards permitted by lenders in 2000 and 2001.
How Did We Get Here?
In 2000 and 2001, real estate was hot – make that white hot. According to the S&P/Case-Shiller Home Price Composite 10 Index, an index that follows home prices, values increased 21.5% from the years 1990-1999. During the first two years of this decade alone, home prices increased 23.6% for the same index. This resulted in a period of wildly loose lending guidelines that would ultimately fuel the subprime mortgage collapse in 2008.
In retrospect, it's easy to see, and even understand, the mistakes that were made during this unusual period of growth. Rapidly escalating home prices not only eased economic and personal financial woes, they invited opportunity and risk whose rewards, while hard to resist, couldn't possibly be sustained at such a high level. Nonetheless, increasing equity created flexibility that benefitted buyers and sellers alike – as long as property values continued to ascend.
During this time, borrowers with no jobs, no down payments, and poor credit histories could easily obtain financing. A host of exotic mortgage products flooded the market. And even if a borrower got into trouble, there was a multitude of options to help him or her climb out of the hole, including refinancing or even selling the property. A lot of people made a lot of money during this time.
But, as the real estate market began to turn and the economy began to suffer, home values slowed and then ground to a halt, and the true risk in the market was exposed. No longer supported by skyrocketing home values, borrowers had fewer options, lending guidelines tightened, adjustable rates adjusted, resulting in a crash in the market that is only now just beginning to turn.
What Does This Mean to Borrowers Today?
Simply put, home lending has returned to what insiders call a "full-doc world." This means lenders need proof, documented evidence that a borrower is creditworthy and likely to repay the loan. This creditworthiness is based on the four tenets of lending: the borrower's ability to pay, willingness to pay, equity in the transaction, and the property itself.
Ability to Pay
This is the documentation portion of the equation. In determining one's ability to repay a loan, it is now common for a lender to ask for recent paystubs, W-2s, and possibly tax returns in the case of a salaried employee. For self-employed borrowers and those earning commissions, tax returns for the two most recent years and a profit and loss statement for the current calendar year will likely be required. While certain exceptions may be granted, potential borrowers can further increase their chances of securing a mortgage by keeping their debt-to-income level below 45%.
Willingness to Pay
Repercussions of the credit crisis have made FICO scores more important than ever to lenders. In order to obtain the best interest rate and have a broader selection of loan programs from which to choose, potential borrowers should strive to keep their FICO score above 720.
Borrowers whose scores fall below 720 where the loan will be sold to Fannie Mae and Freddie Mac can expect risk-based pricing, which could result in either higher costs or higher rates. So, while it is possible to get a loan with scores as low as 620, programs other than Fannie Mae or Freddie Mac are probably the best path for a borrower with a lower score to take.
Equity in the Transaction
With the exception of mortgage programs guaranteed by the USDA and VA, no-down-payment loans have pretty much evaporated on a national level. Today it is expected that borrowers put a minimum of 3.5% down for an FHA loan and 5%-10% down for agency loans sold to Fannie Mae or Freddie Mac.
If someone is strapped for cash, however, it is still possible in the purchase contract to negotiate with the seller to pay a percentage of the closing costs, as long as it's within the program's limitations and the property appraises highly enough for this action to be permitted.
With the exception of the President's Home Stability Plan, it is no longer possible to refinance a loan without equity in the property. However, under this plan, millions of homeowners are expected to be able to take advantage of being able to refinance at a loan-to-value of up to 105% of the appraised value.
Cash-out refinancing has also been tightened, compared to just a few years ago. While pulling equity out of a home is still possible, the costs to do so have become more expensive for homes with a higher loan-to-value. Depending on the program, cash-out transactions have generally been limited to a maximum of 85% of the home's appraised value.
The Property
Home appraisals are also being more scrutinized today to ensure the value of the home is both fair and realistic for lender and borrower alike. On May 1st, new legislation (Home Value Code of Conduct or HVCC) placed a barrier between loan originators and appraisers for loans sold to Fannie Mae and Freddie Mac (legislation does not affect mortgages guaranteed by the FHA, USDA or VA.)
For those loans impacted by HVCC, all parties involved should be prepared for potential delays. If value conflicts occur, sellers, buyers, homeowners, and real estate agents must be prepared to provide information where needed.
In locations of the country where property values have been in significant decline, additional documentation may be required by the appraiser to help the lender justify the appraised value.
In Summary
Yes, getting a mortgage may be more difficult than it was a few years ago, but don't assume that you can't get one.
Reports suggest that over $2.7 trillion in loans will be originated in 2009 – that's over $1 trillion more than 2008. Contact the professional who supplied you with your copy of YOU Magazine. With interest rates at or near all time lows, lower home prices, and the $8,000 tax credit for first-time buyers, it's worth the time and effort to find out if you can benefit from common-sense lending in today's real estate market.
Thursday, June 4, 2009
Pending Home Sales Up for Three Months in a Row
Pending Home Sales Up for Three Months in a Row
RISMEDIA, June 2, 2009-Record low mortgage interest rates boosted pending home sales for the third consecutive month, with some benefit now from the first-time buyer tax credit, according to the National Association of Realtors®.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in April, rose 6.7% to 90.3 from a reading of 84.6 in March, and is 3.2% above April 2008 when it was 87.5.
Lawrence Yun, NAR chief economist, said buyers are responding to very favorable market conditions. “Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” he said. “Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.”
The Pending Home Sales Index in the Northeast shot up 32.6% to 78.9 in April and is 0.8% above a year ago. In the Midwest the index rose 9.8% to 90.4 and is 11.1% above April 2008. The index in the South slipped 0.2% to 93.0 in April but is 3.5% higher than a year ago. In the West the index rose 1.8% to 94.8 but is 2.9% below April 2008.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said there are numerous buyer assistance programs around the country. “Some states are offering bridge loans that allow first-time buyers to use the tax credit for downpayment and closing costs, but there are many other local government and nonprofit programs available to buyers, depending on location,” he said.
“Just last week, HUD announced that qualifying buyers can use the tax credit for closing costs on FHA loans, to buy down the interest rate or make a larger downpayment. Buyers who are wondering about their options should contact a Realtor®, who can advise consumers on the housing assistance programs and resources available in a given area.”
NAR’s Housing Affordability Index is in record territory. The affordability index rose to 174.8 in April from an upwardly revised 171.9 in March, and was the second highest monthly reading on record after peaking at 176.9 in January of this year. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income; tracking began in 1970.
A median-income family, earning $60,900, could afford a home costing $296,800 in April with a 20% downpayment, assuming 25% of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80% of that amount. The affordable price was well above the median existing single-family home price in April, which was $169,800.
Yun cautions that the reporting sample for pending home sales is smaller than that of existing-home sales, so it is subject to greater variability. “In addition, the relationship between contracts on pending home sales and closings on existing-home sales is taking longer than in the past for several reasons,” he said. “Mortgage processing time has increased, it is taking many months to close on those homes requiring short sales with lender approval, and some sales are falling through at the last moment.”
The total number of existing-home sales is expected to improve but with dramatic local market variation in the timing of recovery. “The market has already bottomed in some areas, but this is an unusual housing cycle with some areas improving rapidly while others languish or decline,” Yun said.
For more information, visit http://www.realtor.org.
Read more: "Pending Home Sales Up for Three Months in a Row | RISMedia" - http://rismedia.com/2009-06-02/pending-home-sales-up-for-three-months-in-a-row/#ixzz0HUUwhaAo&A
RISMEDIA, June 2, 2009-Record low mortgage interest rates boosted pending home sales for the third consecutive month, with some benefit now from the first-time buyer tax credit, according to the National Association of Realtors®.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in April, rose 6.7% to 90.3 from a reading of 84.6 in March, and is 3.2% above April 2008 when it was 87.5.
Lawrence Yun, NAR chief economist, said buyers are responding to very favorable market conditions. “Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” he said. “Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.”
The Pending Home Sales Index in the Northeast shot up 32.6% to 78.9 in April and is 0.8% above a year ago. In the Midwest the index rose 9.8% to 90.4 and is 11.1% above April 2008. The index in the South slipped 0.2% to 93.0 in April but is 3.5% higher than a year ago. In the West the index rose 1.8% to 94.8 but is 2.9% below April 2008.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said there are numerous buyer assistance programs around the country. “Some states are offering bridge loans that allow first-time buyers to use the tax credit for downpayment and closing costs, but there are many other local government and nonprofit programs available to buyers, depending on location,” he said.
“Just last week, HUD announced that qualifying buyers can use the tax credit for closing costs on FHA loans, to buy down the interest rate or make a larger downpayment. Buyers who are wondering about their options should contact a Realtor®, who can advise consumers on the housing assistance programs and resources available in a given area.”
NAR’s Housing Affordability Index is in record territory. The affordability index rose to 174.8 in April from an upwardly revised 171.9 in March, and was the second highest monthly reading on record after peaking at 176.9 in January of this year. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income; tracking began in 1970.
A median-income family, earning $60,900, could afford a home costing $296,800 in April with a 20% downpayment, assuming 25% of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80% of that amount. The affordable price was well above the median existing single-family home price in April, which was $169,800.
Yun cautions that the reporting sample for pending home sales is smaller than that of existing-home sales, so it is subject to greater variability. “In addition, the relationship between contracts on pending home sales and closings on existing-home sales is taking longer than in the past for several reasons,” he said. “Mortgage processing time has increased, it is taking many months to close on those homes requiring short sales with lender approval, and some sales are falling through at the last moment.”
The total number of existing-home sales is expected to improve but with dramatic local market variation in the timing of recovery. “The market has already bottomed in some areas, but this is an unusual housing cycle with some areas improving rapidly while others languish or decline,” Yun said.
For more information, visit http://www.realtor.org.
Read more: "Pending Home Sales Up for Three Months in a Row | RISMedia" - http://rismedia.com/2009-06-02/pending-home-sales-up-for-three-months-in-a-row/#ixzz0HUUwhaAo&A
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