The House has flipped and agreed to increase the loan limits for Fannie and Freddie. The increase is to be temporary until the end of the year and got traction because the jumbo loan market continues to be soft with rates for jumbos 50 to 75 basis points higher than conforming limits. As it is being structured, the limits will increase by 125% of the median home price in any market area to a max of $750,000. It was initially reported that the limit would go to $625K across the board. 

According to a report on CNBC, Rep. Barney Frank's Finance Committee will soon release the details. Levels may be set based upon local housing markets. This would make sense considering home prices are much higher in places like California and New York as compared to Michigan or Texas.

Why is this important?  Jumbo loan interest rate have been nearly 1.5% higher in some case than conforming rates.  Your $550,000 could cost $400 a month less after this change. 

The real estate market will bounce back(to normal pre-2003). With rates being very low, seller and buyers expectations becoming more realistic and now conforming limits increasing, this is exactly the lift we all need.

Nick Porter

nick@cffinfo.com

www.lawenforcement1st.com

Community First Financial, LLC

7575 E Redfield Rd, Suite 235

Scottsdale, AZ  85260

480-305-8900  Ext: 308

541-231-3040  Cell

480-718-8802  Fax

Despite all of the recent well reported real estate related woes, I have great news for everybody.  RATES ARE DOWN!  And truth be told, rates are actually way down.  Rates are currently better than anything we have seen in the last 3 years, and by the time you read this, they could be at an all time low for the last 10+ years!

The reason they are so good today is really difficult to pinpoint.  There are really dozens of reasons, but my market advisors are saying that these low rates are influenced from the speculation that the Fed will continue to lower prime (which is a good guess).

Here are my rates on February 4^th.  These rates assume that you qualify.  Qualifying has never been easier; the streamline process has reduced the documentation and time to refinance.

30 year fixed      5.375%

15 year fixed      4.875%

5 year ARM        5.175%

5 year ARM        4.75%

Please give me a call (or email) to explore if this is a good time to refinance.  Aside from the many that will refinance during this rate spike, this is a fantastic time to purchase investment property.

Thank you!

Nick Porter

www.LawEnforcement1st.com

Community First Financial, LLC

7575 E Redfield Rd, Suite 235

Scottsdale, AZ  85260

480-305-8900  Ext: 308

541-231-3040  Cell

480-718-8802  Fax

Law Enforcement 1st is now providing more services and discounts through business partnerships.  I recently teamed up with Jessica Lucas from Hester, Heitel & Associates.  She is a top notch insurance agent who has been working with Phoenix Law Enforcement Association for over a year now.  We have decided to team up and provide Arizona's finest with even more benefits.  Now they can get the best advice from one network including Insurance, Mortgages, Real Estate, Tax Services, and Investing.  I have been developing the Law Enforcement 1st Loan Program which educates the Law Enforcement Personnel whether its buying their first home or multiple investment properties.  The biggest benefit can be provided through collaboration to form a trusted adviser network for the Men and Women serving Arizona.

Please let me know if you have any questions concerning your mortgage or insurance needs.

Thank you!

Nick Porter

Law Enforcement First

Community First Financial

7575 E Redfield Rd, Suite 235

Scottsdale, AZ  85260

480-305-8900  Ext: 308

541-231-3040  Cell

480-718-8802  Fax

WWW.LAWENFORCEMENT1ST.COM

I believe these Officers need a trusted adviser in the Real Estate and Mortgage Industry.  Who looks after their best interests?  I have listed below what PLEA offers it's Phoenix Law Enforcement Personnel.  These services are so important to support our Law Enforcement Community and is why I want to be involved.  PLEA also does a great job of teaming up with Law Enforcement friendly companies to offer a wide array of services and products.  I was excited to see that Jessica Lucas from Hester, Heitel & Associates spends every Tuesday in the office to assist police officers and support staff with insurance.  I have now teamed up with Jessica to combine our services and expertise in order to educate and supply the best information possible.  I specialize in Law Enforcement Home Loans and Jessica has been working with Arizona Law Enforcement for over a year.  This will give Law Enforcement Staff the opportunity to deal with specialists in two fields that hold the highest standards customary with Police Officers.  Number one is TRUST.  We are  here to sit down with you at any time to discuss what we can do for you and your family.  We want Law Enforcement to get the best deal and provide them with the Hub of trusted advisors.

What PLEA Does:

Following is a listing of just some of the duties and responsibilities of the PLEA Board of Trustees and its Member Representatives. Each of the items listed below represent a personal commitment of one or more of PLEA's personell.

REPRESENTATION - Approximately 9,600 individual official administrative investigations since 1976 (based upon a yearly average of 320 files.  An equal number of administration investigations were resolved informally. 

Grievances - Many of the member requests for assistance involve contract or issues of fairness.

Criminal (PORAC/LDF - Legal Defense Fund)

Civil Service (Law Offices of Mike Napier) - generally a rep is assigned to each of these cases.

AZPOST Hearings (Offices of Mike Napier)

Industrial Injury Claim appeals and re-openers (Mike Napier or PLEA's Chief Negotiator)

Member Health and Welfare

Member Benefits - including Life and False Arrest Insurance options

Retirement

COMMITTEES - 

PLEA has a representative on a vast number of committees which include:

TAPS

COPS   

Neighborhood Watch Oversight Commission (Chair)   

Departmental:

IBR Steering and Working Committees, Transfer, Uniform, Matrix, DAC, PAS, FTO, Physical Fitness Board, Firearms, Negotiations, Labor-Management, Career Enhancement Point Committee, Vehicle, Workplace Violence, Domestic Violence Issues, Training Needs

City of Phoenix

City of Phoenix Health Care Taskforce

Incident Committee

Development Advisory Board

Honors Board

Block Watch Advisory Board

Neighborhood Watch Oversight Commission (Chair)

911 Memorial Commission

City of Phoenix Public Safety Advisory Committee

State of Arizona:         

Industrial Commission, Deferred Compensation Board, Retirement Board

Please contact me if you need any Mortgage advice. 

Thank You!

Nick Porter

Community First Financial, LLC

7575 E Redfield Rd, Suite 235

Scottsdale, AZ  85260

480-305-8900  Ext: 308

541-231-3040  Cell

480-718-8802  Fax

www.Lawenforcement1st.com

This is one detail that many Police Officers forget to complete when purchasing a new home.  In this line of work you don't want your address or phone number listed in the public directory or on public records.  Given their profession, many Police Officers are too busy to seek out the forms or don't have someone in their corner to point them in the right direction.  I have been thanked many times for reminding my clients to fill out and turn in the necessary forms after closing on the purchase of their home. 

This is what the top of the form looks like and can be obtained from your local precinct.

One thing to recognize is that this not restricted only to Police Officers but support staff as well.  Below is a list which is from the application for whom this is applicable.

as provided in A.R.S. §11-483 (N), §11-484(K), §16-153(K), or §28-454(K).

To obtain the necessary form for Arizona Law Enforcement, you can click on the following link:

http://supreme.state.az.us/selfserv/PIRA/PIRA-PE.pdf 

Continuing support of our local heroes.

Nick Porter

Community First Financial, LLC

7575 E Redfield Rd, Suite 235

Scottsdale, AZ  85260

480-305-8900  Ext: 308

541-231-3040  Cell

480-718-8802  Fax

WWW.LAWENFORCEMENT1ST.COM

Historically Police Officers looking for 100% financing have had to pay higher interest rates and have squeaky-clean credit histories.  The first programs that rolled out required $500 down and we now have these no money down loans with $0 due at closing.  It makes sense to provide these workers nationwide, whose pay scales normally rank in the low-to-moderate range, can get financial help buying a home, much like veterans do.

Benefits of Program

• Higher Debt to income ratios
• Seller can pay first 6 months mortgage payments
• Reserves in bank not required
• Interest only available
• Interest rate can be bought down by buyer or seller
• Allows for Seller or family member to contribute 6% of mortgage amount to closing costs or down payment.

If you are a police officer, police worker or police support staff and require advice or help from an experienced mortgage broker to assist with your police mortgage then please call or email for further advice.

Nick Porter

Community First Financial, LLC

480-305-8900  Ext: 308

541-231-3040  Cell

nick@cffinfo.com

www.communityfirstfinancial.com

7. CLOSE on the property

Closing takes place at a title/escrow company.  As we discussed in step 6 - Loan Analysis, you will need to know how much money to bring to the closing table. 

There are a lot of documents, take the time to make sure you know what you are signing.  If you don't know what a document is for, ask the title agent for clarity.  While all of the documents are important, the HUD 1 is very important to review.  This outlines who (seller, buyer) pays what and who (mortgage broker, Real Estate Agent, Title, etc.) gets paid what.

Take a friend, spouse, therapist, family member to closing with you.  Remember this can be a very emotional experience, so if you need to have some 'support' with you, take it.

Team Members Needed - Title/Escrow Officer

Tools - Sample HUD 1

8. Execute your EXIT
    
Now that you have closed and own the property it is time to execute your exit.  Is your plan to hold the house for a few years and then sell it?  If so, you will want to talk to your CPA to discuss when to sell.  Owning the property for 1 year and a day could be the difference between paying 30ish% tax (taxed as ordinary income) or using a 1031 exchange to roll the profit into another property, tax defered.  If you own and have lived (occupied) in the property for 2 out of the last five years, you could take the profits with no tax hit.  1 day could be the difference between thousands of dollars that you may need to pay in tax.

Maybe your plan is to accelerate your loan pay down?  Your mortgage broker should have tools to help you take what is normally a 30 year payoff to a 10 or 11 year payoff by using a combination of increased monthly payments and utilizing a HELOC (home Equity line of Credit).

Team Members Needed - CPA

9. EXPAND - What's Next
    
No matter where you are starting from, there are tremendous opportunities in real estate to create and make money...even in an up and down market.  It often starts with your first home, and then you build from there.

So what resources are available to you get the education and find the right team members...

1.  Join a real Estate Investors Club National REIA Website
2.  Attend seminars in your area - you can find these in your local newspaper.
3. Attend the Community First Financial monthly book study Click here for details

 Nick Porter

Community First Financial, LLC

7575 E Redfield Rd, Suite 235

Scottsdale, AZ  85260

480-305-8900  Ext: 308

541-231-3040  Cell

480-718-8802  Fax

www.lawenforcement1st.com

4. CONTRACT

When in doubt, tie up the property by getting the property 'under contract' and just ensure that your escape clauses are in place.  Earnest money...it is important to know 'how much' earnest you need to put down.  Truth is, all that you need to put down is $1 to $100, whatever amount is required by your title/escrow company to open an escrow account.  Real Estate Agents will tell you they like 1% or some other amount because it show that you are a 'serious' buyer.  Point is...earnest money is negotiable.  Everything is negotiable. 

Quick Contract tips..if you want something, be specific.  If you want an 'escape' be broad.  Two examples, I want the Viking Refrigerator so in my contract I am going to add the serial number and photograph..or; This deal is subject to my partners approval.  You may not want that Viking to be replaced by a GE (no offense GE) and for the other example I never said that my partner was my dog and the property didn't pass the sniff test.

Real Estate Agent...getting into serious contracts, use a Real Estate Attorney.
Tools - Your real estate agent will have a standard purchase agreement.  In case of you are looking for other legal forms click here.

5. ANALYSIS of the Property 
    
There are 2 areas of property analysis to consider: Property condition and property value.   

Property Condition- Do you know if you are buying a dog?  Do you want to buy a dog?  (Believe it or not some people do as they love the concept of fixing a property up.)  The point is do you know what needs to be 'fixed' or 'updated' on the home prior to purchasing.   A good home inspector will identify issues or problem areas throughout the entire home.  If your home inspector does identify issues, then you will want to bring in specialists to quote the work and evaluate what it will take to handle the work.
 
Property Value - When buying a home there is one primary number that you want to be aware of...The Appraised Value of the property.   You will get this from an appraiser, but one tip...ask for (and review) a copy of the appraisal before you close.

Real Estate Agent, Appraiser, Home Inspector, any other specialists required.
Tools -  Sample Appraisal
 

6. LOAN Analysis

Below is a quick checklist of items that you will want to know concerning your loan.  You will want to compare this information to your current financial situation and your exit strategy to ensure that this loan fits your needs. It is always recommended that you talk to at least 3 mortgage brokers about your deal, as every mortgage broker may have access to a different loan program.

Here is the hit list of what should be included in a Good Faith Estimate:
    -Interest Rate
    -Monthly Payments
    -Taxes and Insurance
    -Loan Amount
    -Pre-payment Penalties
    -Fixed or Variable Rate
    -Term (Length)
    -Amount of money needed to close (your check to bring to closing)

 Tools - Possible Loan Options

Nick Porter

www.LawEnforcement1st.com

7575 E Redfield Rd, Suite 235

Scottsdale, AZ  85260

480-305-8900  Ext: 308

541-231-3040  Cell

480-718-8802  Fax

1. Build your TEAM

If there was one thing that will make a difference between a good experience/deal or a bad experience/deal...it is your team.  Your team could consist of a Real Estate Agent, Mortgage Broker, Title/Escrow Agent, Insurance agent, Home Inspector, General Contractor, Real Estate Attorney, and the list can go on.  We are going to start with the most important...and that is your Real Estate Agent and Mortgage Broker. 

So how do you know the difference between a good team member and a bad one...we recommend the book Rich Dad's Real Estate Advantages (Buy Book)...in chapter 5 it covers some of the questions to ask and what to look out for.  

2. Your Exit STRATEGY (& Credit) = Loan Options
    
Most mortgage brokers focus on your credit as the key factor in placing you into a certain type of loan.  While your credit is important...It is your intended exit of your property that will define your loan options.  If you are looking to hold this property  for the long term then you may be looking for a 30 year fixed loan that is paid off within the 30 years or sooner.  If you intend to only keep this home a few years, then an interest only loan may make the most sense.  Why, because it will keep your monthly payment low.  

No matter what your exit is, there is a loan program for everyone.  The problem, most people look for the 'best deal' instead of the loan program that is the 'best fit'.

Tools - Mortgage Calculators , Online Mortgage Application 

3. FIND a Home
    
So here comes the step of going out and finding a home.  One of the most important parts of this process is managing your emotions.  Yes, the purchase of a home is an emotional decision...lets just be aware of that.  To give you a different perspective though, it is important to understand the difference between a consumer and investor.  Consumers make decisions based on emotions while an investor makes decisions solely by the numbers. 

My recommendation is be both a consumer and an investor, get what you want (emotions) yet make sure it makes financial sense.

Real Estate Agent Tools - Real Estate Listings

Nick Porter

7575 E Redfield Rd, Suite 235

Scottsdale, AZ  85260

480-305-8900  Ext: 308

541-231-3040  Cell

480-718-8802  Fax

WWW.LAWENFORCEMENT1ST.COM