Why is having a close relationship with your client's lender important? - 03/31/10 05:07 PM
In this new market, many new regulations and guidelines are in place to protect the client in the lending world. The biggest point here is full disclosure. The new Good Faith Estimates have to be very accurate, and in some cases, once things have been disclosed, there is no room to make changes. Any re-disclosing, for any reason, has to have enough time to be reviewed and approved and have documents re-drawn. This eliminates surprises at the closing table. To me, a close relationship is defined by clear communication, from email to phone calls, on the side of both the lender … (3 comments)

Case-Shiller Shows Home Price Improvement In A Majority Of Cities Nationwide - 03/31/10 03:21 PM

Standard & Poors released its Case-Shiller Index Wednesday. The report shows that, on a seasonally-adjusted basis, between December and January, home prices rose in more than half of the index's tracked markets.
The strength of this month's Case-Shiller report, however, should be put in context.
For one, the report is on a 2-month delay; it's showing data from January, before the start of the Spring Buying Season and before the rush to beat the tax credit. Anecdotally, buyer interest has been strong since, leading to the types of multiple offer situations that drive home prices northward.
In other words, home … (0 comments)

Get Your FHA Mortgage Application Started -- Fees Increase 1/2 Percent Starting Monday, April 5, 2010 - 03/30/10 12:53 PM
Starting Monday, April 5, 2010, getting an FHA mortgage will be more expensive for borrowers.
In new guidelines set forth earlier this year, the FHA announced plans to raise additional revenue and reduce the overall risk of its mortgage portfolio. 
The changes include the following:
Increase Upfront Mortgage Insurance Premiums from 1.75% to 2.25% for everyone A plan to reduce seller concessions from 6 percent to 3 percent An increase in minimum downpayment for FICOs 580 or lower For your own loan, to avoid being subject to higher loan costs, make sure to have your FHA Case Number assigned prior to … (0 comments)

The Difference between Homeowners and Landlord Insurance - 03/29/10 06:22 PM
For the average Homeowner, who is moving out of their home and wants to maintain ownership, at first blush there may not seem like a big difference in what kind of Property Insurance you need. But Homeowners Insurance is priced on, and includes coverage’s for, the owner of that residence. This can be quite different from the protections a Landlord will need when renting out the residence to others. The assumptions, and in most cases requirements, of the insurance carrier is that the homeowner will exhibit a pride of ownership, and will maintain the property in the condition they would want … (0 comments)

What's Ahead For Mortgage Rates This Week : March 29, 2010 - 03/29/10 12:54 PM
Mortgage markets tanked last week, raising rates to their highest levels in a month. 
Most of the losses occurred Wednesday in what was the worst 1-day mortgage market performance in more than 6 months. Even Friday's rally could barely dent the losses. Most of the movement was tied to geopolitical concerns and worries of a ballooning federal debt load. 
The best time to lock a conventional or FHA mortgage rate last week was Tuesday morning.
This week, markets should remain volatile. There's a large set of economic data due for release, plus trading volume will thin as the week goes on … (0 comments)

For Your Next Renovation Project, Visit one of our Local Salvage Showrooms! - 03/26/10 06:39 PM
Are you looking for something unique for your next house project? Then think about visiting one of several great, local salvage shops. If you’re on the Peninsula, pay a visit to Whole House Building Supply. They have salvaged finds at their showroom ranging from windows & doors to vintage sinks & light fixtures. If you’re feeling adventurous, sign up to receive their emails for upcoming salvage sales where you can visit Peninsula properties that are either being torn down or remodeled down to the studs. You then get to remove from site anything from plants to light fixtures to door knobs … (0 comments)

The Home Price Index Shows Home Values Lower Broadly, But Not Specifically - 03/26/10 11:28 AM

Home values fell again in January, according to the Federal Home Finance Agency's Home Price Index. Values were reported down 0.6 percent, on average.
We say "on average" because the Home Price Index is a national report. It doesn't capture the essence of a local market , or even a city market.
The most granular that the monthly Home Price Index gets is regional and January's report shows that:
Values in the Mountain states rose 2.0% Values in the Pacific states were flat Values in the East North Central states fell 1.8% It's hardly helpful for home buyers entering the … (0 comments)

How Can I Prepare My Financials for Buying a Home? - 03/25/10 04:07 PM
The state of your financials is an important part of applying for a loan. Nowadays we are back to the basics of full disclosure of all income and assets. Stated income or overstating your income are not going to work and will not pass underwriting. This is actually a positive move in the right direction as recently there were too many people on all sides of transactions that did not disclose material facts, and because of this many people have lost or are losing their homes. So, what do we need? Just remember the “two's.” Most lenders will need the last … (2 comments)

The Average Household Will Get $2,800 In Tax Refunds. Will You? - 03/25/10 03:19 PM

April 15 is Tax Day and the IRS estimates that the average U.S. household will receive a $2,800 tax refund this year.  If you're among the Americans expecting a refund, this 4-minute piece from NBC's The Today Show may be helpful. It's a talk about how to receive a refund and what to do with it.
Some of the key points discussed include:
Why state-issued tax refunds may be delayed this year How wage-earning people can claim their "Making Work Pay" tax credit of up to $800 How to direct a tax refund to a 529 college savings plan for … (2 comments)

Existing Home Sales Flatten And Point To A Much Better Spring - 03/24/10 11:38 AM
As expected, Existing Home Sales fell in February, slipping 30,000 units versus January's numbers. It's the 4th straight month in which Existing Home Sales were lower, month-over-month.
An "existing" home is one that is previously owned and lived-in (i.e. not new construction).
Existing Home Sales peaked in November 2009, just as the First-Time Home Buyer Tax Credit was set to expire. Immediately thereafter, according to the National Association of Realtors®, monthly sales plunged 17 percent in December, then another 7 percent in January.
Comparatively, February's dip is a modest 0.6 percent and is more in line with the pre-tax-credit Existing Home … (2 comments)

What types of investments are the most solid and how does my Financial Advisor help me find them? - 03/23/10 08:45 PM
Investing is not a one size fits all endeavor. If anyone can answer the first part of this question without doing a serious and comprehensive financial plan then they are an investment broker, not a financial advisor. Essentially, just as a doctor cannot prescribe the correct treatment without testing and analysis, a Financial Advisor needs the full picture before they start to offer advice and 'treatment' for your financial portfolio. As a Financial Planner-- as it comes to investments--I believe you first need to determine the time frame for which you are investing. There are investments such as CDs that can … (0 comments)

CNNMoney.com Predicts The Best And Worst Real Estate Markets For 2010 - 03/23/10 01:34 PM
CNNMoney.com recently published its 2010 forecast and projections for home prices in the country's largest metro markets. 
Listed as "Top 25" and also comprehensively by state, CNNMoney.com's home price forecasts puts Santa Rosa, California at the top of 2010's home appreciation list and Hanford, California at its bottom.
The 10 cities projected for highest home appreciation in 2010 are:
Santa Rosa, CA : +6.0% Cheyenne, WY : +4.7% Kennewick, WA : +4.6% Merced, CA : +4.4% Bremerton, WA : +4.2% Fairbanks, AK : +4.2% Corvallis, OR : +4.1% Tacoma, WA : +3.9% Anchorage, AK : +3.8% Bend, OR : +3.3% The … (2 comments)

What's Ahead For Mortgage Rates This Week : March 22, 2010 - 03/22/10 12:15 PM
Mortgage markets closed unchanged last week, but that's not say mortgage rates were calm. Monday through Wednesday, rates improved steadily before a swift, late-week sell-off unwound the gains.
Mortgage rates have been very low for a very long time -- against the expectations of most market experts.  The speed of the Thursday-Friday reversal may signal that markets are preparing for change.
One key story from last week was the Federal Open Market Committee's scheduled Tuesday meeting. Upon adjournment, the Fed voted 9-1 to hold the Fed Funds rate in its current target range near 0.000% and reiterated its plan to keep … (0 comments)

For Clues About The Future Of Mortgage Rates, Watch For Inflation - 03/19/10 11:38 AM
Homes are more affordable across the nation as the housing market emerges from a slow winter season with mortgage rates still near 5 percent.
Soft housing and low rates are an excellent combination for home buyers but whereas home values rise with a gradual pace, mortgage rates change in an instant.  It's something worth watching.
Each 0.25% increase to conventional or FHA rates adds approximately $16 per month for each $100,000 borrowed. Mortgage rate volatility can change your household budget.
If you're trying to gauge whether rates will be rising or falling, one keyword for which to listen is "inflation". Mortgage … (0 comments)

The Most Common Defects That Prevent a Home from Passing a Home Inspection. - 03/18/10 06:14 PM
Buyers typically request a home inspection to determine the condition of a property. What is uncovered prior to the closing can often result in needed repairs, which can set off renegotiating the deal with the seller or in extreme cases cause a deal to collapse. The inspectors are not the enemy! They are simply there to report on the condition of the property. The biggest and most common defects that can be avoided are: Improper Electrical Wiring
This is usually done by homeowners or unqualified contractors. Think inadequate overload protection, wires tied together without being housed in a box, etc. All … (0 comments)

Why is pre-approval important? Do I have to go back to the same lender that originally approved me? - 03/18/10 11:39 AM

Pre-approval is the first step in looking for looking for a home. Yes, even before hiring a real estate agent! The pre-approval letter that you get from your lender shows that the lender has verified your income, pulled your credit, verified your assets to close and for reserves and deemed them all okay for a loan of a particular size. Part of this process should be your lender sitting down with you and talking about your finances and the mortgage payments you would be comfortable with, based on your income and down payment. This conversation will help you determine a … (2 comments)

Single-Family Housing Starts Hold Steady For The 8th Straight Month - 03/18/10 11:35 AM
Single-family Housing Starts idled last month, dropping just 3,000 units from the month prior, or 0.2%.
According to the Commerce Department's report, February marked the 8th straight month in which Housing Starts straddled the half-million marker, dating back to June 2009.
This is a different slant on the Housing Starts story as told by the press.
Most publications are reporting that Housing Starts fell 5.9 percent in February. Technically, this is true.  Housing Starts did fall 5.9 percent last month.  However, the Housing Starts data is comprised of three parts:
Single-Family Housing Starts 2-4 Unit Housing Starts "Apartment Building" Housing Starts … (0 comments)

A Simple Explanation Of The Federal Reserve Statement (March 16, 2010 Edition) - 03/16/10 03:19 PM
Today, the Federal Open Market Committee voted 9-to-1 to leave the Fed Funds Rate unchanged, in its target range of 0.000-0.250 percent.
In its press release, the FOMC noted that the U.S. economy "has continued to strengthen" and that the jobs markets "is stabilizing".  It also said that business spending has "has risen significantly".
This is a slight departure from the Fed's January statement in which housing was not mentioned and business spending was said to be "picking up".
It's also the sixth straight statement from the FOMC in which the Fed described the economy with optimism.  This is a signal … (0 comments)

A Rate-Locking Strategy For Today's Fed Meeting - 03/16/10 12:23 PM
The Federal Open Market Committee adjourns from a scheduled 1-day meeting today, its second of the year. The FOMC has held the Fed Funds Rate in a target range of 0.000-0.250 percent since December 16, 2008, and the voting members of the Fed are expected to vote "no change" again today. However, no change in the Fed Funds Rate doesn't necessarily mean no change in mortgage rates. This is because the Fed Funds Rate is a different interest rate from the rates home buyers get from a loan officer. Fed Funds Rate : Short-term rate at which banks borrow from each … (0 comments)

What's Ahead For Mortgage Rates This Week : March 15, 2010 - 03/15/10 11:51 AM
Mortgage markets worsened last week with little economic news to push markets in either direction. Momentum trading and rebalancing of portfolios drove mortgage rates higher, on average.
FHA and conventional mortgage rates rose last week, marking the first time that's happened this month. 
Mortgage rates have been on impressive run lately and mortgages are priced far better than what most experts predicted.  Weaker-than-expected economic data is one reason why.  Lack of economic data may be another.
This week, however, data returns.
Monday : Industrial Production and Home Builder Index Tuesday : Housing Starts and Building Permits Wednesday: Consumer Confidence Thursday : … (0 comments)

When should I think about discussing my finances with a financial planner? - 03/12/10 03:23 PM
You should consider talking to a Financial Advisor when you are making a life change such as getting married, having children, changing jobs or have some financial questions outside of your personal expertise. Don’t assume that you can find financial answers on the internet. You are about as likely to become an expert in financial planning over the internet as you are to become a brain surgeon. Financial planning takes into account many different aspects of the current marketplace and a strategic financial plan helps those aspects to work together for the greatest reward. This isn't something that a novice to … (1 comments)

How To Refinance When Your Home Is Underwater - 03/12/10 11:38 AM
The Federal Housing Finance Agency has extended the government's Home Affordable Refinance Program by 12 months.
HARP's new end date is June 30, 2011.
Originally known as Making Home Affordable, HARP aims to help homeowners refinance their mortgage who may otherwise be ineligible because of falling home values.
There are 4 basic HARP criteria every borrower must meet:
The existing home loan must be guaranteed by Fannie Mae or Freddie Mac. Your home must be a 1- to 4-unit property You must have a perfect mortgage payment history going back 12 months. No 30-day lates allowed. Your first mortgage balance must … (3 comments)

What Should I Expect from My Lender and My Real Estate Agent's Relationship? - 03/11/10 11:22 AM
The relationship between your lender and agent is extremely important when purchasing a home. The new market environment has many more regulations, hoops and sharp turns and everything relating to your home purchase should be correct and accurate up front. The lender doesn't want any surprises, like a seller credit the day before the lender is supposed to draw loan documentation, since surprises can cause delays which can prevent meeting important deadlines. Not meeting these deadlines can have consequences for the buyer, from losing your deposit to not being able to purchase the home at all! Having an agent and a … (0 comments)

7 Weeks Remain To Find A Home, Claim Up To $8,000 In Tax Credits - 03/11/10 11:20 AM
In November, Congress extended and expanded the First-Time Home Buyer Tax Credit program to include a subset of "move-up" buyers -- homeowners that have owned and lived in their home for 5 of the last 8 years.
The credit ranges up to $8,000 per buyer. There's now just 7 weeks left to take advantage.
To be eligible, home buyers must be under contract for a new home no later than April 30, 2010, and must be closed no later than June 30, 2010.
In addition to meeting the deadline dates, there's a basic set of requirements to be tax credit-eligible:
You can't … (1 comments)

A Note on the New FHA Rules - by Justine Ford - 03/11/10 11:18 AM
The Federal Housing Administration has announced major changes to its program. The agency will increase the amount of upfront cash paid by new borrowers and require higher down payments from those with the poorest credit. Upfront insurance premiums paid at the closing table will increase to 2.25% of the loan value, but buyers will be able to finance the premiums. Borrowers with credit scores below 580 will be required to put at least 10% down. Home buyers with higher scores will still be allowed to put down as little as 3.5%. FHA also plans to reduce seller concessions from 6 to … (1 comments)

About This Weeks Mortgage Rates: March 8, 2010-March14, 2010 - 03/11/10 11:17 AM
Mortgage markets improved last week in low-volume trading.
Between Monday to Thursday, Wall Street focused on the upcoming jobs reports and mortgage markets gained while traders jockeyed for position. Mortgage rates drifted lower through Thursday afternoon. But, then, after a better-than-expected Non-Farm Payrolls report Friday morning, mortgage markets -- and mortgage rates -- reversed.
Overall, mortgage rates dropped last week, but only by a small margin. Rates were best Thursday afternoon.
It was the second consecutive week in which mortgage rates fell.
Last week was also interesting in that both stock markets and bond markets improved, proving that rates don't always … (1 comments)

Why do I need a Financial Planner? - 03/05/10 01:47 PM
A Financial Planner can play an important part in how you achieve your financial goals. They look at your full financial situation then help to create a plan and strategy to achieve your goals faster and more efficiently. Financial planners are knowledgeable in areas of investment, risk management, estate and trust work, tax reduction strategies and more. Using this knowledge they can make sure that all of these areas are working together effectively to help protect all that you have worked so hard to achieve. A Financial Planner doesn’t just do investments, but they can help you to invest your money … (0 comments)

Tying Friday's Jobs Report To Rising Mortgage Rates - 03/04/10 11:16 AM
Conforming and FHA mortgage rates have improved over the last 10 days, but that could all change this Friday with the release of February's Non-Farm Payrolls report.
Non-Farm Payrolls is the official name of the government's monthly jobs report and, given the fragile state of the U.S. economy, Wall Street will be watching it closely.
Mortgage rates could spike come Friday morning.
Jobs are an important part of the nation's recovery. Among other concerns, unemployed Americans don't spend as much money on goods and services, and are more likely to default on a mortgage. This retards economic growth and increases the … (0 comments)

How Does My Credit Score and Report Affect the Loan I Can Take Out? - 03/03/10 03:21 PM

Where your credit stands is a very important thing to understand when you start the home buying process*. When your credit is run by a lender, they are looking to see how much of a risk lending money to you may be. Many other factors come into that, including your debt-to-income ratio, other investments you have and other financial information, but understanding your credit score and what your credit report says is immensely important. Your credit score, also known as a FICO score, is extremely important because it directly relates to your credit history and impacts the rate that you … (0 comments)

Buying Distressed Homes: A few tips. - 03/03/10 03:19 PM

According to the the National Association of Realtors®, "distressed homes" represented nearly 2 of every fifth home sold in January 2010.  Clearly, real estate investors are taking advantage of good deals on cheap property.  But there's risk involved.
This NBC Today Show interview first ran in March 2009, featuring real estate expert Barbara Corcoran. Despite its age, the message remains relevant. Today may be a terrific time to buy a bank-owned home -- just make sure you do your research first.  There's plenty of ways for investors to get burned.
Some of the tips in the video include:
Buy in … (0 comments)