Erica's Blog

100% financing STILL available

Erica Wright (Platinum Real Estate Associates of RE/MAX Southern Realty) — Fri, 07 Aug 2009 21:21:31 -0700

There are only two 100% financing options still available, one is Rural Housing and the other is VA. Rural Housing has certain areas that are eligible and has income limits depending on the amount of people in the household. Every county is different as well as every state.

You can check the property eligibility here http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Income limits are here http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=pageLoad&requestInfo=GuaranteedIncomeLimits&NavKey=incomelimit@12

Here is an article I found about Rural Housing and what a great program it is. They have helped 50,000 American become homeowners so far this year. This is by far one of my favorite programs! Please read the article below:

AGRICULTURE DEPUTY SECRETARY MERRIGAN ANNOUNCES USDA HAS HELPED 50,000 AMERICANS BECOME HOMEOWNERS

WASHINGTON, August 5, 2009 - Agriculture Deputy Secretary Kathleen Merrigan today announced that 50,000 rural families have attained the dream of becoming homeowners with the help of funding provided by the American Recovery and Reinvestment Act. These funds have been made available through a variety of programs administered by USDA Rural Development as part of President Obama's aggressive efforts to strengthen rural communities.

"Revitalizing rural America is one of President Obama's top priorities, and this investment is not only helping families to become homeowners, but it's also building rural communities by putting money back into the local economy," Merrigan said. "Home ownership is critical to increasing economic opportunity and building a rural America that will succeed in a 21st century."

In communities across the nation, the American Recovery and Reinvestment Act funding is having positive effects for individuals, families, communities and local economies. USDA Rural Development offers guaranteed and direct single-family home loans to eligible rural residents who are unable to secure a conventional loan. In contrast to conventional loans made by lenders such as banks and credit unions, Rural Development loans are made by USDA directly to the borrower. Down payments are not required, and payments are based on the borrower's income.

One of the beneficiaries of the Recovery Act funding is Mallory Sanford Horn, a Mississippi elementary school teacher who received a USDA Rural Development guaranteed loan to buy a home in New Albany, Miss. Without Recovery Act funds, Horn, who had only limited cash reserves for a down payment and was unable to secure a conventional loan, would not have been able to buy this new home.

Meanwhile, in Chipley, Fla., Ranna Shelley, a single mother of two, obtained a USDA rural Development single family housing loan under Recovery Act funding to purchase her home. As a new homeowner, she will now be able to provide her family the security, stability, comfort and sense of community that homeownership affords.

Merrigan also highlighted a homeowner in Safford, Ariz., who was not only one of the 50,000 families using Recovery Act funds to buy a home, but also earned the distinction as the loan beneficiary who pushed USDA Rural Development's Single Family Housing loan obligations beyond the record-setting $10 billion mark. Ramona Fasol used Recovery Act funds to become a first-time homeowner in June. Since 1949, USDA has made more than 2.7 million homeownership opportunities available to rural citizens.

President Obama signed Recovery Act into law on Feb. 17, 2009. It is designed to jumpstart the nation's economy, create or save millions of jobs and put a down payment on addressing long-neglected challenges so our country can thrive in the 21st century. The Act includes measures to modernize our nation's infrastructure, enhance energy independence, expand educational opportunities, preserve and improve affordable health care, provide tax relief and protect those in greatest need.

More information about USDA's Recovery Act efforts is available at www.usda.gov/recovery.

More information about the Federal government's efforts on the Recovery Act is available at www.recovery.gov.

USDA Rural Development's mission is to increase economic opportunity and improve the quality of life for rural residents. Rural Development fosters growth in homeownership, finances business development, and supports the creation of critical community and technology infrastructure.

Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA Rural Development's web site at www.rurdev.usda.gov.

Buying vs. Renting

Erica Wright (Platinum Real Estate Associates of RE/MAX Southern Realty) — Sun, 26 Jul 2009 08:26:11 -0700

I found this article in the news paper today. What a great article for us Lenders and Realtors to let the market know buying is the better deal!

Buying vs. renting

For more people, scales tip toward buying a home

By ALEX VEIGA
AP Real Estate Writer

    For Aaron Carter, a musician who was struggling to fit a drum set, a piano and three guitars into his 600-square-foot apartment in Phoenix, the math on owning a home finally began to work in his favor.
    Rent for the apartment he shared with his wife: $615. Mortgage payment for a home with twice the space: $760. And the interest on a mortgage is tax-deductible. So they jumped at the chance to buy some elbow room.
    "We figured that everything together, getting more space, getting out of the apartment life and also just the prices right now, it just was the perfect time for us as a couple" to buy, said Carter, 20.
    For Americans debating whether to buy or rent their homes, the scales are tipping toward ownership. Because of the slide in home prices, low interest rates and tax incentives, renters are realizing they could handle a mortgage for a just little more money.
    An Associated Press analysis of 45 metro areas finds the gap between the monthly mortgage payment on a median-priced home and the median rent has shrunk from $777 a month to just $221 in the past three years.
    It could mean a quicker end to the housing-market doldrums, as renters buy up unsold homes languishing on the market.
    In some metro areas, including Cleveland, Atlanta, Indianapolis and St. Louis, the gap was less than $100 a month. And home prices are expected to fall faster than rents this year, which means the gap should get even smaller.
    In once-inflated markets like Phoenix, Las Vegas and inland swaths of California and Florida, where prices have tumbled more than 40 percent, sales are rising because first-time homebuyers are snapping up bargain-priced homes.
    They are getting help from a federal tax credit that covers 10 percent of the home price or up to $8,000 for first-time buyers who earn up to $75,000 a year, or $150,000 for a couple. The credit expires at the end of November.
    Cheap foreclosures in some of those markets are now drawing multiple bids. As supply and demand even out, home prices will eventually begin to rise. But for now buyers are having little trouble finding bargains.
    Jere Ross, an Air Force vehicle operator, and his wife recently bought a fourbedroom, 1½-bath house in Zephyrhills, Fla., a Tampa suburb, for $86,500 rather than jump into another yearlong apartment lease.
    Ross, 23, used a Veterans Administration loan, which doesn't require a down payment, and got a 30-year mortgage at a fixed rate of 5.5 percent. His monthly payment comes to $700 a month, including property taxes and insurance - $110 less than he paid to rent an apartment nearly half the size.
    "It just came to a point where we were just throwing our money away on rent," Ross said. "When it came to find out that we could own this house for, less than what we're paying in rent, it was a ‘no duh!' kind of moment."
    The study, conducted for the AP by Marcus & Millichap Real Estate Investment Services, used prices for the first three months of this year.
    It calculated mortgage payments by assuming a 10 percent down payment, a 30-year fixed loan at 5.15 percent, and taxes and insurance that added up to 1.5 percent of the purchase price. It assumed borrowers used private mortgage insurance.
    While the analysis found the gap between what it costs to own and rent is shrinking, it's still too wide for millions who live paycheck to paycheck.
    Renters with jobs in the education, retail and transportation industries don't earn enough to rent the average two-bedroom apartment in many of these major cities, let alone buy, according to a recent study of 200 metro areas by the Center for Housing Policy.
    Renters who want to become homeowners also face the obstacles of scraping together a down payment and qualifying for the loan. And renters with a record of paying bills late will have a hard time getting a low interest rate.
    "There's still those buyers that are having trouble getting financed," says Brad Snyder, an agent with ZipRealty in Las Vegas. "A lot of them are still just looking for that easy way in, and it's just not there."
    Homeowners also have to shoulder many costs renters don't face - association fees, insurance, some utilities. And there are still cities, among them San Francisco and Los Angeles, where it's usually still more affordable to rent - even though home prices have fallen more than 30 percent.
    Mike Sigal, a longtime renter in San Francisco, has looked at buying a home for the past couple of years. But buying one comparable to the two-bedroom, two-bath apartment he has now would cost more than $600,000, meaning the mortgage would far exceed his $1,800 rent.
    "The math doesn't come out," said Sigal, 42, who runs an information services company. "I've got extreme value for my rent."
    Nevertheless, homes in some parts of country are more affordable than they've been in decades.

Loan Programs & Guideline updates

Erica Wright (Platinum Real Estate Associates of RE/MAX Southern Realty) — Wed, 03 Jun 2009 12:25:10 -0700

It's a brand new week and we have some programs to help get your clients into that dream home!!!

Loan Program & Guideline Updates

FHA

3.5% down (can be a gift from relative)

Minimum 530 credit score

Upfront Mortgage Insurance required

Monthly Mortgage Insurance required

PRIMARY RESIDENCE ONLY

100% financing

NO PMI

NO Monthly Mortgage Insurance

Minimum 620 credit score required

2.15% Funding fee for first time use

3.30% Funding fee for subsequent use

PRIMARY RESIDENCE ONLY

Rural Housing

102% financing

Minimum 620 Credit score required

2% Guarantee Fee (funding fee)

NO PMI

Call for income limits in your area!

Conventional

Primary Residence---10% down

2^nd home & Investment-20-25% down

Must have Mortgage Insurance with less than 20% down

We can finance CONDOTELS!!!!

710 Minimum Credit Score

Primary & 2^nd home----25% down

Investment----35% down

Can do Arms & fixed rates

Call for details!

5 Big Credit Mistakes

Erica Wright (Platinum Real Estate Associates of RE/MAX Southern Realty) — Wed, 03 Jun 2009 12:22:50 -0700

It's surprising how many consumers make the same credit scoring mistakes over and over again. In an effort to educate consumers on credit and credit scoring, we've compiled 5 common credit scoring mistakes into a list that defines each mistake and explains why they are bad and how to avoid them:

Credit Mistake #1: Closing Credit Cards Accounts

This is probably THE biggest credit mistake that consumers make. What you may find surprising is that closing credit card accounts can hurt your credit score almost as badly as missing a payment.

Not only is this the number one on the top five credit scoring mistakes, it's also number one on the list of credit myths.

Ironically, most consumers make this mistake based on poor advice from a mortgage lender as a strategy for improving their credit scores. A word of advice people, when you're dealing with something as sensitive as your credit and credit scores, make sure you do your homework before trusting some of these so called 'industry experts' before following through with their advice.

There are two important reasons why you should not close credit card accounts:

1. Eventually, the accounts will fall off of your credit reports - The information in your credit reports are subject to certain rules in regards to how long it can remain in the report. In most cases, credit information will remain in your credit reports for seven years from the account's DLA (date of last activity).

When an account is open, the DLA will continue to update each month and the open account will never reach that seven-year mark.

If you close the account, the DLA will stop updating and the clock will start ticking. Eventually the account will be completely removed from your credit reports.

Why would this be a bad thing?

It's simple - you never want to get rid of old, positive information in your credit reports. This information actually helps your credit scores.

Credit scores want to see this positive account information. They want to see your long, perfect history of making your payments on time because this information significantly helps your credit scores.

This information significantly helps your credit scores so why would you ever want that history to disappear? You wouldn't! Here's an analogy for

you: let's say you made straight A's in high school. What if the record of that perfect scholastic accomplishment were permanently deleted seven years after you graduated? Would you ever want that history deleted? Of course you wouldn't. The same is true for the credit reporting environment.

So, what should you do with old credit cards that you don't use any longer?

What you don't want to do is to let the account become inactive. When this happens, the credit card companies aren't generating any revenue for your account.

Eventually they'll close the unused account because you're more of a liability than an asset. You can prevent this from happening by using the card every few months for low dollar purchases like dinner or a tank of gas.

When the bill comes in, just pay it in full. If you do this, it will ensure that the account will never be closed and you'll always get credit for your good payment history.

2. You could cause a spike in your revolving utilization and tank your scores - The percentage of your available credit in comparison to the debt you owe is a very important factor in calculating your credit scores.

This is often called "revolving utilization," or your debt-to-limit ratio.

For example, if you have an open credit card with a $1,000 credit limit and a $500 balance then you are using 50% of your available credit. This means that you are 50% utilized on this particular credit card.

Now lets add a second credit card to the mix.

Let's say you have another open, but unused credit card account with a $1,000 limit and a $0 balance. This would put your total revolving utilization at 25% because you have $2,000 in available credit limits and $500 in total balances.

If you divide your total balances by your total credit limits, you'll get your total aggregate revolving utilization: $500 divided by $2000 equals .25 or 25%.

So how will closing unused credit cards hurt your credit score? When you close an account, the amount of available credit decreases, which could result in a higher revolving utilization and lower your score.

Let's use the example from above and close the second unused credit card account. When you close the account, you remove it from any utilization calculation and now you're stuck with one open credit card account with a $1,000 limit and a $500 balance.

This caused your utilization to go from 25% to 50%.

Remember, you divide the total balance by the total available limit so $500 divided by $1,000 is .50 or 50%. As this percentage increases, your credit score decreases.

When you're talking about several unused credit cards with high limits, you can just imagine what closing credit card accounts could do. I've seen consumers go from a 10% utilization to almost 100% utilization because they closed all of their credit card accounts except the one they were currently using. Big mistake.

Credit Mistake #2: Missing Payments

It doesn't take a credit scoring expert to tell you that missing payments is a bad thing. The only reason I made missing payments second to Closing Credit Card Accounts is because this one is a no brainer.

It shouldn't take a credit expert to tell you that missing payments is bad. Common sense should tell you that missing payments is bad. Credit scores are designed to predict how likely you are to miss payments in the future.

This means that they look at your credit history to view how you've managed all of your credit obligations.

Missed payments is the most powerful predictor of future late payments.

The FICO score evaluates previous late payments in three different

layers:

How Severe - How severe is the late payment? It doesn't take a statistician to tell you that a 30-day late isn't as bad as a 90-day late. The more severe the late payment, the more damaging it is going to be to your credit scores.

Consumers who have missed payments by a few weeks and then bring their accounts current score much better than consumers that have gone 90+ days past due. In fact, a 90-day past due is the threshold that will wreak havoc on your scores.

If you are unable to avoid a late payment, the next best option is to get those accounts current as quickly as you can.

How Recent - How long ago did the late payment occur?

The last 24 months of your credit history are critical because the FICO score places more emphasis on your recent credit patterns.

This means that a late payment 6 months ago is going to carry much more weight than a late payment from 4 years ago. To recover from late payments it's important that you get current and stay current.

How Frequent - How often have the late payments occurred? Consumers that miss payments frequently are penalized much more severely than those that have missed a payment here or there in their past.

If you have a tendency to make late payments your credit scores will reflect your bad habits. Make your payments on time and you'll never have to worry about losing points in this category.

Credit Mistake #3: Settling Accounts

One of the most common mistakes consumers make is assuming that 'settling' with a lender is a great way to save a little cash.

Unfortunately, they don't realize what that a 'settled' indicator in their credit reports is actually derogatory.

"Settling" is a term used in the consumer credit industry that means accepting less than the amount you owe on an account. For example, if you owe a credit card company $5,000 but you can't pay them the full amount then they will likely make you a deal for less than that full amount. They have "settled" for less than the full amount, which is likely much less than you contractually owe them.

This may seem like a good idea because you save quite a bit of money but as far as the credit scoring models are concerned, this is just as negative as other severe late payments.

The only way to avoid the damage to your credit scores is to arrange a deal with the lender to report the account as 'paid in full' as opposed to 'settled'. If they don't agree then it's in your best interest to figure out how to pay them in full or else be prepared to suffer the damage to your credit for the next 7 years.

It's also important to understand that if the account has already made it to the collection phase, the damage is already severe and settling won't really make a difference. Settling is only an option if the account has already made it to a severe delinquency state.

Credit Mistake #4: High Revolving Utilization on Your Credit Cards

Most consumers believe that making your payments on time is all it takes to have good credit and earn great credit scores.

What they don't realize is that almost a third of your score is determined by how much you owe on your credit card accounts. If you have high balances on your credit card accounts, you're credit scores could be severely impacted by your revolving utilization.

In order to score the most possible points in this category, I advise keeping your revolving utilization at 10% or less.

Don't be fooled when you hear some of these celebrity experts telling you that 50%, 30% or even 25% is best.

While 30% is considerably better than 50%, 10% or less is ideal. The lower the utilization percentage, the better your score will be. (*To read more about revolving utilization and how it's calculated, please read the revolving utilization bullet in Mistake #1.)

Credit Mistake #5: Excessively Applying for Credit

Whenever you apply for credit your application gives the lender permission to access your credit reports. When they pull your credit reports, it automatically posts an inquiry in your credit record. This inquiry is a record of who pulled your credit report and the date it occurred.

Credit scoring models use inquires to determine if and when you shop for credit. Statistics show that consumers who have more inquiries are higher credit risks than those with fewer inquiries.

It is for this reason that the more inquiries you have, the more points you lose in the credit score calculation.

The exact point value of inquiries is a much argued topic and is impossible to give an exact point value because it really depends on all of the other information included in your individual credit file.

The best strategy would be to only apply for credit when you absolutely need to.

This means that you should avoid those in store offers of "10% off" in exchange for applying for a store credit card. This may sound like a great idea but the reality is that while you may save a few bucks on your purchase, those inquiries could end up costing you a lower credit score which could result in higher interest rates on auto or mortgage loans in the future.

There you have it. Now that you know the top 5 credit mistakes, you can avoid making the same mistakes that so many other consumers make.

Little known Air Conditioning FACTS

Erica Wright (Platinum Real Estate Associates of RE/MAX Southern Realty) — Wed, 03 Jun 2009 12:00:29 -0700

I did a little research on Gulf Power's website because my energy bill was OUTRAGEOUS this month! Here are some simple ways to save money and still have that perfectly comfortable temperature inside your home. Here's what I learned:

Q. What is the most efficient thermostat setting for air conditioning?

A. The best setting is the highest temperature at which you are comfortable. The cost of operating your air conditioner increases significantly with each degree the thermostat is lowered. Most people can be comfortable at settings between 75 - 78^oF.

Q. What does the term "tons" mean in the context of air conditioning?

A. A ton is a measure of the size or cooling capacity of an air conditioner. One ton is equivalent to removing 12,000 BTUs of heat per hour. For example, a three ton air conditioner can remove 36,000 BTUs per hour.

Q. When I replace my central air conditioner, would it be more efficient to get a larger unit? Will it make the house more comfortable?

A. It is best to get a properly sized unit. Although a larger unit may run for shorter periods of time, it will use more electricity due to its larger size. It may also fail to properly dehumidify the home. A properly sized unit will control both temperature and humidity, making the home more comfortable.

Q. What does the "EER" or "SEER" rating on an air conditioner mean?

A. Both EER (Energy Efficiency Ratio) and SEER (Seasonal Energy Efficiency Ratio) are indicators of how efficient the unit is. The higher the number, the more efficient the unit and the lower the operating cost. SEER is used with central air conditioners, while EER is used with room air conditioners. For new central systems, SEERs of 13 or higher are generally considered high-efficiency units. For room units, EERs of 11 or higher are considered high-efficiency.

Q. What is the recommended SEER rating for a central air conditioner?

A. The current minimum requirement is 13 SEER. This is significantly more efficient than older units. Ratings of 13 to 15 are common, and will have lower operating costs, and units with SEERs as high as 18 are available. The more you use your central air conditioning, the more you will benefit from higher SEER ratings, and the more likely that the additional cost will be offset by energy savings.

Q. I have one room in my home that is always too hot in the summer - what can I do to make that room more comfortable?

A. If the room has a large area of exposed glass, keep curtains or blinds closed during daylight hours, particularly at times when the sun would shine directly in. You might also ask your air conditioning contractor to check whether you are getting enough air in that room - there may be a problem with your duct system.

Q. I have my air conditioning system checked every year, and it always seems to need "recharging" with refrigerant - is this normal?

A. Refrigerant does not shrink or disappear - a need for regular recharging indicates a refrigerant leak. The solution is to fix the leak, not to keep recharging the system.

Q. Will ceiling fans help cool my home in summer, and should I run them constantly, even when my air conditioning is running?

A. Ceiling fans can help make the home more comfortable, either alone or in combination with your air conditioner, by creating more air movement, which makes the air feel cooler. But remember that they do not actually cool the air, so there is no point in running them in unoccupied rooms or when no one is at home.

Q. Should I remove window air conditioners in the winter?

A. Window air conditioners should either be removed or sealed in winter to prevent cold air from entering the home and warm air escaping. Insulated covers are available which can be effective in reducing this air leakage if it is not feasible to remove the units. Sealing the inside and outside of the units with plastic sheeting can also be effective.

Q. What is a "whole house fan" and is it a good option for cooling my home?

A. A whole house fan is a large ventilating fan, typically mounted in a ceiling between the living space and attic. The fan draws air out of the living space and exhausts it to the attic, and then out through the attic vents. For the most effective ventilation, a window or windows in the lower part of the house should be partially opened, to bring cooler air into the home. These fans can be an effective supplement to air conditioning, but unlike an air conditioning system, they do nothing to reduce indoor humidity
.

Ways to lower your Electric Bill

Erica Wright (Platinum Real Estate Associates of RE/MAX Southern Realty) — Wed, 03 Jun 2009 11:41:41 -0700

Regardless if you are feeling the pinch from the worldwide economic downturn, we could all use some genuine and easy to implement energy saving ideas. We all know to lower the thermostat when we sleep at night and to install low flow shower heads, but we may not realize just how much the following steps can lead to a lower electric bill.

First, if you live in an area where air conditioning is mandatory, it is important to remember to change your air filters. The air filters installed in air conditioning units filter out harmful dust and bacteria from the air, but they only work for so long. In general, an air filter should be replaced once every month, but check with your manufacturer to find out what they recommend. An efficiently running air conditioner unit can lead to a lower electric bill in no time flat.

If you enjoy cooking from home, you can help keep cooking times down to a minimum by always remembering to use lids on all of the pans you cook with. By keeping that energy closer to the food you are preparing, you can significantly reduce cooking time and, in turn, reduce the amount of time you have to have your stove on in the first place. Even if the recipe you are preparing doesn't ask for a lid to be used, you likely aren't hurting anything by trying to save energy.

Almost every home in the world has at least one faucet that drips on occasion. When most of us think about home improvement, we don't think about replacing washers and tightening faucet heads, but the reality is that, with every drip, you are wasting water, and wasting energy, too. By making faucet maintenance part of your regular home cleaning duties, you can nip any significant energy loss in the bud and that will lead to a lower electric bill.

For some people, only doing full loads of laundry and dishes in your dishwasher is common sense, but for others, a reminder may be needed. No other single appliance uses more resources than your washing machine, so if you can limit the number of loads you do, you can save yourself significant cash. Even better, upgrade to a new, energy efficient washing machine and reduce your energy use even further. Check for the official Energy Star rating sticker on new appliances for your home.

Every day in the home, there are appliances, electronics and other items that are plugged in, but not in use. Normally, these items don't use any measurable amount of electricity, but if your coffee maker, DVD player or microwave has a clock, it is slowly sucking down the juice, a little bit at a time. Keeping these items unplugged or only having one plugged in instead of six can lead to a lower electric bill before you know it.

Rural Housing Benefits

Erica Wright (Platinum Real Estate Associates of RE/MAX Southern Realty) — Thu, 09 Apr 2009 22:11:17 -0700

What are the benefits of RURAL HOUSING?

102% Financing

NO Mortgage Insurance

30-Year FIXED rate

NO loan limits

Closing costs can be financed

UNLIMITED SELLER CONTRIBUTIONS!

NO Reserves required!

CAN get up to their EMD money back at closing

What about repairs?

Repairs can be financed but must be escrowed 1.5 times the amount of repairs.

Must be completed before they issue the Guarantee

Energy Efficient Mortgage Q&A

Erica Wright (Platinum Real Estate Associates of RE/MAX Southern Realty) — Thu, 09 Apr 2009 22:04:23 -0700

Here are a few Q&A's about the Energy Efficient Mortgage. I just finished the NAR GREEN Designation class. I took even though I am not a REALTOR, I sure learned alot!

Q: How does the EEM benefit the borrower?

A: The EEM benefits the borrower in several ways. First, the estimated energy savings are added to the borrower's income to allow the home buyer to qualify for a larger total mortgage amount. Second, by increasing borrowing power, the EEM allows borrowers to include the costs of energy improvements into the total mortgage amount. 100% of the energy improvements, typically up to 15% of the value of the home, can be financed and paid for over the life of the mortgage, reserving the borrower's cash for more immediate, move-in costs. Third, the value of the home is adjusted by the value of the energy efficient improvements.
Q: How does a home qualify for the EEM?
A: Existing homes must have a RESNET accredited rating report to evaluate the home's energy efficiency in its current state or to identify opportunities for cost-efficient energy efficient upgrades.

If the home was newly constructed, the home can have a rating report. After completion, the home is evaluated with a home energy rating.
Q: What is a home energy rating?
A: The home energy rating is a standard measurement of the home's energy efficiency. An energy rating allows a home buyer to easily compare the energy costs for the homes being considered.

Home energy ratings involve an on-site inspection by a residential energy efficiency professional - a home energy rater. Home energy raters are trained and certified by a RESNET accredited home energy rating system.

The home energy rater inspects the home and measures its energy characteristics, such as insulation levels, window efficiency, wall-to-window ratios, the heating and cooling system efficiency, and the solar orientation of the home. Performance testing, such as a blower door test measuring door and duct leakage may be used. The home receives a point score between 1 and 100, depending on its relative efficiency. An estimate of the home's energy costs is also provided. A homeowner who wants to upgrade the energy efficiency can use the energy rating to evaluate and pinpoint specific, cost-effective improvements.

What Shade of Green are YOU?

Erica Wright (Platinum Real Estate Associates of RE/MAX Southern Realty) — Thu, 26 Feb 2009 18:47:45 -0800

Has anyone ever asked you the question, "What Shade of GREEN are you?"" If they did, do you know what you would say? That all depends on what you are trying to achieve. Are you recycling, not littering, planting trees, driving an "smart car", or upgrading your home to be more energy efficient? If you are doing any of the above.....your are helping the environment! Go ahead, give yourself a pat on the back!

Did you know that according to the National Association of Home Builders, the market demand for green homes is continuously rising. In fact, they say by 2010, 40-50 percent of new homes are expected to be green. So get on the band wagon now and start sharing the benefits of going GREEN!

We have a program that will allow you to upgrade your current home whether you are adding solar panels, new flooring, new roof, or energy efficient appliances to name a few. It is the 203K program. It requires a 3% down payment and you get to choose up to 4 licensed contractors to do the repairs. You can finance up to $35,000 in repairs! What a great program to help you go GREEN and save you money from month to month. You will see the savings add up! You would be happy to know that there are several advantages to upgrading your home. You have tax advantages, monthly energy bill savings, and that warm fuzzy feeling knowing you are doing something good for the environment!

Some of the tax advantages for 2009 are a $500 Home Tax Credit for Energy Efficiency , a $2,000 Tax credit for Geothermal Energy, or another $2,000 Tax credit for installing Solar Panels. These tax credits are only good for 2009. If any of these were installed in 2008, the tax credits are much lower.

Going Green is a commitment I have made for my clients as well as in my personal life. I have found not only is this great for our communities, but it can also be cost effective if done the right way and with the right mortgage advisor. I am the right mortgage advisor that will provide you with the best service and expertise in Green Mortgages!

Mortgage Rates Fall

Erica Wright (Platinum Real Estate Associates of RE/MAX Southern Realty) — Fri, 19 Dec 2008 11:04:27 -0800

Are you looking to refinance? What about purchasing that new home you have had your eye on? If so, it is the perfect time to take advantage of the all time low rates!

The article below was in today's paper the Northwest Florida Daily News. Call me if you have any questions!

Mortgage rates fall

WASHINGTON (AP) Mortgage rates are falling as this week's dramatic action by the Federal Reserve provides a boost to the dismal housing market, but the nationâ€^TMs unemployment rolls are stuck at historically high levels amid a deepening recession.
Mortgage giant Freddie Mac on Thursday reported that rates had fallen to the lowest level on records dating back to 1971. Average rates on 30-year fixedrate mortgages dropped to 5.19 percent, down from the years previous low of 5.47 percent, set last week.
Jobs data from the government, while better than expected, was still sobering. The Labor Department on Thursday said its tally of initial jobless benefit claims fell to a seasonally adjusted 554,000 from an upwardly revised figure of 575,000 the previous week. The new tally was slightly below economistsâ€^TM expectations of 558,000 claims.
Another slight improvement was seen in the number of people who continue to receive jobless benefits, which declined to 4.38 million from 4.43 million the previous week. Economists expected a slight increase to 4.45 million.
Still, claims remain near the highest level since 1982, although the labor force has grown by about half since then.
And the cuts continue.
Water treatment and storage systems maker Pentair Inc. said Thursday that it will cut more than 10 percent of its work force, or about 1,600 jobs, because of a faster-than-expected drop-off in demand and consumer spending.
One day earlier, hard drive maker Western Digital Corp., managed-care company Aetna Inc., and Newell Rubbermaid Inc., maker of products including Rubbermaid storage containers and Sharpie pens, announced mass job cuts.
The Federal Reserve, aiming to free up lending and jolt the economy back to life, on Tuesday cut the federal funds rate from 1 percent to a target range of zero to 0.25 percent and pledged to keep funneling money into the market for mortgage investments.
On Wednesday, some mortgage brokers were quoting mortgage rates of close to 4.5 percent for people with strong credit and hefty down payments.

Erica Knapp

Senior Loan Officer

NorthStar Mortgage Group

The Landmark Office Center

217 Miracle Strip Parkway S.E.

Suite 13

Fort Walton Beach, FL 32548

850-420-3883 Cell

850-436-8761 Fax

www.EricaKnapp.com

GO GREEN!!!!

Erica Wright (Platinum Real Estate Associates of RE/MAX Southern Realty) — Mon, 15 Dec 2008 14:18:53 -0800

With the new year approaching its time to GO GREEN! Many of you were at the ECAR Installation Banquet and the theme for this year is "Let's Go Green." You are probably wondering, how am I going to implement that into selling real estate. The answer is Green Mortgages. Sunshine Mortgage has several financing programs available to help you and your clients get the most for their money. As Anita Williams said, "There are different shades of green." How green are you willing to go depends on several factors. Are you installing solar panels, different water heaters, or going all out and building a new green home? No matter what the situation, Sunshine Mortgage is your answer. Call me for details on how you and your clients can save money with a Green Mortgage!

Erica Knapp

Senior Loan Officer

Sunshine Mortgage Corporation

The Landmark Office Center

217 Miracle Strip Parkway S.E.

Suite 13

Fort Walton Beach, FL 32548

850-420-3883 Cell

850-436-8761 Fax

Erica.Knapp@SunshineMortgage.com

www.SunshineMortgage.com/Erica.Knapp

5 REASONS TO CONSIDER ERICA KNAPP & NORTHSTAR MORTGAGE

Erica Wright (Platinum Real Estate Associates of RE/MAX Southern Realty) — Fri, 14 Nov 2008 14:22:17 -0800

5 REASONS TO CONSIDER ERICA KNAPP & NORTHSTAR MORTGAGE

•1) VARIETY OF PROGRAMS

We have many programs available such as Conventional, FHA, VA, Rural Housing, 100% Programs, 1st Time Homebuyer, Jumbo, Fixed, ARMS, Interest Only, 203K, and Many, Many more! Best of all, we have "GREEN" Mortages!!!

•2) LOW RATES & CLOSING COSTS

When it comes to rates, very rarely are we not the lowest in the industry!

•3) REPUTATION & EXPERIENCE

Sunshine has been in business since 1981 and is considered one of the leaders in the mortgage industry, having closed over 20 Billion in loans since inception.

•4) CLOSING ASSURANCE

Sunshine process, underwrites, closes, and funds almost all loans in house. This allows for fast and accurate Pre-approvals and provides assurance your loan will close on time. I stay in constant communication throughout the loan process, so you never have to wonder about the status!

•5) TRUST

I always have my client's best interest in mind. I understand that if my clients are not satisfied, it is highly unlikely they would ever refer their family and friends. My goal, as your loan officer, is to make sure you have a pleasurable experience and the loan gets to the closing table!

2009 FHA limits

Erica Wright (Platinum Real Estate Associates of RE/MAX Southern Realty) — Thu, 13 Nov 2008 22:47:03 -0800

Here are the FHA loan limits for Walton County for 2009

One Unit Two Units Three Units Four Units

$325,450 $416,600 $503,600 $625,850

All other counties (Santa Rosa, Okaloosa, Bay, etc) fall under these limits

One Unit Two Units Three Units Four Units

$271,050 $347,000 $419,400 $521,250

VA 100% Cash Out Refinance!!!

Erica Wright (Platinum Real Estate Associates of RE/MAX Southern Realty) — Thu, 13 Nov 2008 22:45:15 -0800

VA will now allow 100% cash out refinances. At Sunshine, we will offer this LTV increase which was previously limited to 90%. This is exciting news! Please call me if you have any questions! 850-420-3883

10 Questions to Ask Potential Buyers

Erica Wright (Platinum Real Estate Associates of RE/MAX Southern Realty) — Thu, 13 Nov 2008 22:27:39 -0800

10 QUESTIONS TO ASK POTENTIAL BUYERS

Have you or your spouse ever been in the Military, Reserves, or National Guard?

(This will let you know if they qualify for VA Benefits)

Are you purchasing a Primary Residence, Second Home, or Investment Property?

(This will help you determine what type of financing is available)

Do you need to rent your current home or sell it in order to buy?

(This will not only give you a time frame for your buyer, but also lets you know they need to have at least 25 - 30%equity if they intend to rent it)

Are you a First Time Homebuyer?

(A first time homebuyer is anyone who has not owned a home in the past 3 years)

Where are you looking to buy and what type of property are you looking for?

(This lets you know what type of financing is available i.e. Rural Housing or if you need Condo financing)

Do you currently rent? If so when is the lease up and how much are you paying?

(This will let you know where they are comfortable making their payments)

What is your credit score?

(This will let you know if you have credit challenges that we will need additional documentation)

Are you Self Employed? If so, how long have you been Self Employed?

(This will tell you if we need full tax returns for the past 2 years and if we can count this as income)

Are you a W-2 employee? Where are you employed and how long have you been at that job?

(If there are any gaps in employment, we will need a letter of explanation)

How much are you looking to put down for your down payment?

(This will help us with choosing the right products and programs)

What do you know about RESPA?

Erica Wright (Platinum Real Estate Associates of RE/MAX Southern Realty) — Wed, 11 Jun 2008 12:03:25 -0700

I wrote this article a while back. I know everyone is tuned into the same radio station (WIIFM) [What's In It For ME]. But a reality check came into place when everyone wants a referral fee or a free dinner etc. I am not losing my job over a RESPA Violation because someone wants a free gift for a referral or a gift card etc. We are here in this business to make a difference in people's lives and make their dreams of home ownership a reality. Please read below about the RESPA Laws that are in effect

What is RESPA?

RESPA is the Real Estate Settlement Procedures Act, a federal law enacted to protect consumers from abusive or excessive fees in real estate transactions. Among the requirements of RESPA are rules regarding cooperative marketing and referral kickbacks.

In short, a loan officer cannot offer anything in exchange for business referrals. In times past, it wasn't uncommon for loan officers and mortgage brokers to give gift certificates or larger-valued items to people who referred them business. Now, anything beyond a simple "Thank You" is a violation of the law, and can be prosecuted.

(Conceivably, this is to keep the loan fees down, as a referral bonus or thank-you gift from the loan officer could mean higher costs for the person getting the loan.)

What it means is that I cannot give you something as simple as free listing flyers that market your home, as that would be perceived as an exchange of something of value for business referrals. .

While the cost of printing flyers may seem too small to worry about, I'm committed to obeying the law both in spirit and to the letter. Any loan officer who isn't heeding the law is putting both himself and YOU, the referral source, at risk of fines up to $10,000 and even up to a year in prison time!

I hope you'll understand that I'm not making any money by charging you the proportional costs of any cooperative marketing efforts we pursue. I'm certainly not trying to be a "cheapskate," penny-pinching to save myself a few dollars.

However, if you are interested, I can still give you my advertising flyers that explain different loan programs, which you can distribute to likely candidates and thus help them to see how they could afford to purchase your home. I can still offer free pre-qualification to those whom you meet. And I can still invite home-shoppers who see me before finding a house to take a tour of your home.

I hope that you'll consider the value of marketing flyers, and that you'll choose to work together. You'll still be saving the substantial costs of a real estate agent's listing fees, and expediting the sale of your home.

What You Need to Know About Your Credit Score...

Erica Wright (Platinum Real Estate Associates of RE/MAX Southern Realty) — Wed, 11 Jun 2008 11:54:22 -0700

What You Need to Know About Your Credit (FICO) Score

What You Don't Know About Your FICO Score Can Cost You Money

It's important to obtain copies of your credit report from the three major credit bureaus and review them for accuracy, but if you want to know how a potential lender views you, it's important to know your credit or FICO score. FICO comes from the Fair Isaac Company, which came up with the process of condensing all of your credit information into one three-digit number.

Three quarters of all lenders use FICO scores when considering requests for loans or credit. In addition, credit scores are often reviewed in concurrence with many other activities we shall all experience such as seeking employment or obtaining insurance.

The importance of your FICO score doesn't end there. It's also used in determining your interest rate, the amount of your down payment and the variety of mortgage types available to you if you're buying a house, your ability to get a car loan, the premium on your auto or homeowners insurance, and even your ability to get a job.

If your FICO score is on the low side, you'll pay a higher interest rate on loans and credit cards.

To get the best interest rates, your score should be 720 or above.

What Is the Range of Possible FICO Scores and What Do They Mean?

FICO scores range between 300 and 850. Ratings are as follows:

~ Excellent: Over 750
~ Very Good: 720 or more
~ Acceptable: 660 to 720
~ Uncertain: 620 to 660
~ Risky: less than 620

How Is My FICO Score Calculated?

The formula used to calculate your FICO score includes information based on several factors:

~ 35% on your payment history
~ 30% on the amount you currently owe lenders
~ 15% on the length of your credit history
~ 10% on the number of new credit accounts you've opened or applied for (fewer is better)
~ 10% on the mix of credit accounts you have (mortgages, credit cards, installment loans, etc.)

How Can I Improve My Credit Score?

The best way to improve your credit score is to pay your bills on time and manage your credit wisely. The most important item is your mortgage. Make sure you pay it on time every month. Installment loans, where you borrow a set amount to buy new furniture or appliances, for example, are given more weight than credit cards.

Keep your borrowing well below your credit limits, because your FICO score will be lower if you are maxed out on your credit cards. Don't have more than two or three credit cards because a large number of credit cards can also lower your FICO score. Don't apply for several credit cards at one time; it makes lenders nervous and will lower your FICO score. Other factors also affect your score, such as home ownership, which raises it, and moving frequently, which lowers it.

Do's & Don'ts of the Mortgage Process

Erica Wright (Platinum Real Estate Associates of RE/MAX Southern Realty) — Wed, 11 Jun 2008 11:29:04 -0700

DON'T APPLY FOR NEW CREDIT OF ANY KIND

If you receive invitations to apply for new lines of credit, don't respond. If you do, that company will pull your credit report and this will have an adverse effect on your credit. Likewise, don't establish new lines of credit for furniture, appliances, computers, automobiles, etc.

DON'T PAY OFF COLLECTIONS OR CHARGE-OFFS

Once your loan application has been submitted, don't pay off collections unless the lender specifically asks you to in order to secure the loan. Generally, paying off old collections causes a drop in the credit score. The lender is only looking at the last two years of activity.

DON'T CLOSE CREDIT CARD ACCOUNTS

If you close a credit card account, it can affect your ratio of debt to available credit which has a 30% impact on your credit score. If you really want to close an account, do it after you close your mortgage loan.

DON'T MAX OUT OR OVER CHARGE EXISTING CREDIT CARDS

Running up your credit cards is the fastest way to bring your score down, and it could drop up to 100 points overnight. Once you are engaged in the loan process, try to keep your credit cards below 30% of the available credit limit.

DON'T CONSOLIDATE DEBT TO ONE OR TWO CARDS

Once again, we don't want you to change your ratio of debt to available credit. Likewise, you want to keep beneficial credit history on the books.

DON'T RAISE RED FLAGS TO THE UNDERWRITER

Don't co-sign on another person's loan, or change your name and address. The less activity that occurs while your loan is in process, the bettter it is for you.

DO JOIN A CREDIT WATCH PROGRAM

Your bank, credit union or credit card company may be able to provide you with a free credit watch program that can alert you to any changes in your credit report. This can be a safeguard to help you
intervene before the underwriter sees a problem.

DO STAY CURRENT ON EXISTING ACCOUNTS

Late payments on your existing mortgage, car payment, or anything else that can be reported to a CRA can cost you dearly. One 30-day late payment can cost anywhere from 30 to 75 points.

DO CONTINUE TO USE YOUR CREDIT AS YOU NORMALLY WOULD

Red flags are easily raised within the scoring system. If it appears you are diverting from your normal spending patterns, it could cause your score to go down. For example, if you've had a monthly service for Internet access billed to the same credit card for the past three years, there's
really no reason to drop it now. Again, make your changes after the loan funds.

DO CALL YOUR LOAN CONSULTANT (Erica Knapp)

If you receive notification from a collection agency or creditor that could potentially have an adverse affect on your credit score, call us so we can try to direct you to the right resources and prevent any derogatory reporting to the credit bureaus.

Where Buyers Come From

Erica Wright (Platinum Real Estate Associates of RE/MAX Southern Realty) — Wed, 11 Jun 2008 10:34:20 -0700

What to do when a divorce occurs....

Erica Wright (Platinum Real Estate Associates of RE/MAX Southern Realty) — Wed, 11 Jun 2008 09:49:21 -0700

When a couple decides to divorce, the stress of dealing with financial issues can be overwhelming. As a result, people will often seek expert advice to educate them on their different options. At Sunshine Mortgage, we specialize in helping individuals learn more about what choices they have regarding the issues surrounding their home mortgage.

The Biggest Issues Surround the Home

• How is title to the marital home currently held?

• Will the marital home be sold?

• If not, who will retain possession of the home?

• How will the vacating spouse be compensated?

• How will the equity in the home and compensation be determined?

• If there is equity, how can it be accessed?

• Is refinance necessary?

• What types of loan programs are available?

• What if one spouse has been out of the workforce for an extended period of time?

• What are the tax implications of a new refinance and/or sale?

• Can the vacating spouse qualify to buy another home?

• What other financial needs/issues need to be addressed?

By coordinating our efforts with all parties involved, Sunshine Mortgage provides answers to these tough questions and solutions to appease both parties.

Without An Existing Mortgage:

If you currently do not have a mortgage on your home, a quit-claim deed is the easiest way to transfer title from one spouse to another. Your attorney can draw this document for you. Recording costs are nominal.

With An Existing Mortgage:

While a quit-claim deed will transfer ownership, it does not remove the vacating spouse from current or future financial responsibility on the mortgage. Only through satisfaction of the existing mortgage will the vacating spouse be free of this obligation.

Without such satisfaction, the vacating spouse will bear the exposure of the mortgage on their credit record. This will result in the responsibility for any delinquency on the account. Carrying the additional debt may also affect their ability to qualify for future mortgage, auto, and consumer financing.

Refinancing serves as a valuable tool to facilitate removal of the vacating spouse from any and all financial obligations on the marital home.

Compensating the Vacating Spouse

Options for compensation of the vacating spouse will vary depending on available equity in the home as well as borrowing power of the remaining spouse.

If the remaining spouse qualifies for a new mortgage, a “cash-out” refinance will allow them to compensate the vacating spouse by drawing cash out of the equity in the property.

Valuation of the Home

If qualification for “cash-out” is not possible, compensation will need to be arranged through the liquidation and transfer of marital property. The value of the martial home can be determined through an appraiser, who will arrive at the value after a thorough analysis of existing market conditions and recent sales. To avoid disagreements over value, both parties should agree on who will complete the appraisal.

Sale of the Home

If neither party wishes to remain in the marital home, or if neither party can qualify to refinance, sale of the home may be the only option. In this case, Beach Community Mortgage can provide referrals to reputable real estate agents. We can also assist either spouse in qualifying for the purchase of a new home.

Mortgages and Qualification

Qualification for a new mortgage can be a challenge for divorced individuals. Alimony and child support payments often adversely affect one's ability to qualify.

Payment of these items may affect qualification ratios, while receipt of these payments for less than an established period of time often disqualifies their ability to be considered as income.

As a lending professional, I work hard to keep you informed at all times, and I believe in straight talk and simple communications. To learn how you can get the special attention you deserve, call today!

Presented by:

Erica Knapp

Mortgage Loan Consultant

Sunshine Mortgage Corporation

Erica.Knapp@SunshineMortgage.com

www.SunshineMortgage.com

What is your best rate?

Erica Wright (Platinum Real Estate Associates of RE/MAX Southern Realty) — Wed, 11 Jun 2008 09:43:10 -0700

“What is your best rate?”

This is the most common question I hear. Most consumers believe that is you get the absolute lowest rate; they have automatically gotten the best possible deal. This is not always the case.

There are a couple of things that go through my mind when I hear people tell me that I found another company that is willing to give a rate that is a half a point lower that the market rate. First, I wonder why this particular lender has to go below market rate to get people in the door. Is it because they cannot get business in the door so they have to undercut the rest of the market to get a body in front of them? Is it a clever gimmick to get you in the door to pull the old bait and switch on you? This conversation ends in, “you could have gotten that rate at 5:27 AM this morning if you are right handed and have 4 toes on your left foot.” However this is what we can do for you…. This conversation usually ends with a very different rate than you thought you would get. The second issue goes like this: You gave me a rate of 6.50% 0 points and 0 origination fees, but this other mortgage company says they can give me 6.25% 0 points and 0 origination fees. I ask them to get a good faith estimate and truth-in-lending disclosure to see if what is advertised is really what you are getting. Upon further review (this happens frequently and I have a collection of good faith estimates that validate this theory), we find that the “lowest rate” lender has hit the customer with a $2000 fee somewhere else that essentially turns the 0/0 rate into something closer to 0/2%. Whether it is called points, discount, or something else - it is still money that comes out of your checkbook. A $2000 discount is the same as paying an extra $2000 on a tax impound. $2000 is $2000 where I come from. Ironically enough, for an extra 2 points, we could have gotten a lower rate than the people who try to take advantage of consumers who are not aware of the bigger picture.

The bottom line is the best rate is not always the best deal. When you are looking for a lender, you must be assured you are picking somebody with a high degree of integrity that is dedicated to keeping you, the customer, informed of the perils of the lending business. The fortunate thing is that 90% of the people in this business are good honest people. The unfortunate thing is the other 10% are here to take advantage of a situation. Be sure you have looked for the lender that will take good care of you, not take advantage of your situation.

For a free good faith comparison to find the best deal possible, please give me a call.

Niceville Chamber of Commerce

Erica Wright (Platinum Real Estate Associates of RE/MAX Southern Realty) — Mon, 07 Apr 2008 11:29:39 -0700

The Niceville Chamber of Commerce is one of the best ways to get involved in the community, especially if you have a small business. We are dedicated to growing our community by the people who get involved. Whether you just moved here or have been here for a while, get involved. There are several committees to get you started. When I first became a member, I started with the Ambassador's Committee which is the face of the chamber. I also got involved with the Buy the Bayou Auction, the Mid-Bay Bridge Run, and the Membership committee. Check out their website for more information! www.nicevillechamber.org

Changing Mortgage Market

Erica Wright (Platinum Real Estate Associates of RE/MAX Southern Realty) — Wed, 15 Aug 2007 10:53:40 -0700

With all the changes in the Mortgage Industry, there is definitely a need to know the basics, which is exactly what I specialize in. From FHA, VA, Rural Housing, and Bond programs, there is a loan program suited for everyone's individual needs. FHA is a 97% LTV programs that is not credit score driven. There are so many Down Payment Assistance programs out there to help with the 3% down payment. This program is a wonderful First-Time Homebuyer program. Also available is VA financing. This is a 100% financing program for anyone who has served in the armed forces. There is a funding fee associated with it depending on if you have used your VA entitlement before or not. The next program of choice is definitely Rural Housing. This program is 102% financing that allows you to roll in all closing costs as long as the property appraises. There are income limits with this program. Just simply ask me for details! Finally comes the Bond Program. We use the Florida Bond program which has many different programs to choose from. We can add this on to most of the programs to help with closing costs and down payment assistance. This has income limits as well. Please feel free to contact me with any questions regarding these or any financing questions!