See the Top 10 Home Improvement Myths on Deaton’s Blog at www.DeatonGroupRealty.com
As always, my family relies on referrals! I appreciate the opportunity to show others what level of service a true real estate professional can provide.
Monday, June 18, 2012
Friday, June 15, 2012
The Real Stuff: 8 scenarios that hurt mortgage qualification
8 scenarios that hurt mortgage qualification
Here are 8 scenarios that may, or may not, affect your ability to get a mortgage.
(1) Changing jobs before the loan closes? Yes. The underwriter approved your application based on your documented income covering two years or longer, from one source. At closing you must certify that all the information in your application continues to be true, which short of committing perjury you won't be able to do if you switch jobs. Your revised job history will be numbered in days rather than years, which could cause a rejection. In today's market underwriter discretion has been markedly reduced, and the likelihood of rejection is uncomfortably high. The prudent thing to do is to defer the job change until after the loan closes. Nobody will care what you do then.
(2) Will the rental income I receive from renting out my house during part of the year help me qualify for the mortgage I need to buy that house? No, anticipated rental income cannot be counted as qualifying income unless it is documented in the owner's tax return for at least two years. Further, only income net of expenses would be counted, and that number would be very small or zero if you expense everything you can in order to avoid taxes.
(3) Can I qualify using my income and my spouse's credit? No. Good credit without the means to pay is of little value to lenders, and good income without the willingness to pay is not much better. Lenders require both capacity to pay and willingness to pay in the same person. Before the financial crisis, married couples who had one spouse with the required income and the other with good credit often took "stated income" loans. Stated income was not verified by the lender. These loans were taken in the name of the spouse with good credit, who stated that the income of the other spouse was theirs. But stated-income loans no longer exist.
(4) Have preapprovals become more useful to homebuyers since qualification requirements became more restrictive? Yes and no. The main purpose of preapprovals is to establish the bona fides of potential homebuyers to home sellers and their agents, who don't want to waste time dealing with wannabe buyers who can't qualify for a mortgage. With an increasing number of potential homebuyers unable to qualify, the value of reliable preapprovals has increased. However, the same factors that make it more difficult to qualify for a mortgage today also make preapprovals less reliable. This is especially the case with self-employed buyers, who may be rejected despite having been preapproved. Preapprovals are always subject to conditions, the most important of which is a minimum appraised value. If an appraisal comes in below the minimum, the preapproval dies.
(5) As a "nonpermanent resident alien," can I qualify for a mortgage? Yes, but the terms are a little stiffer because of the risk that you might be obliged to leave the country. Lenders will require a larger down payment and/or a higher interest rate. In contrast, a "permanent resident alien" suffers no penalty.
(6) Can an excess in appraised value over the purchase price be used to meet a minimum down payment requirement? No, the down payment requirement is based on the lower of purchase price and appraised value. Any excess appraised value is ignored.
(7) Will sizable student debt prevent my qualifying for a mortgage? It may if you must begin repaying the debt within the first year of the mortgage, and if the amount is large relative to income. If the payments are deferred more than a year, it is a judgment call by the underwriter who will consider the size of the student debt, your credit and perhaps other factors.
(8) As a divorced spouse who remains liable on an existing mortgage, can I qualify for a new mortgage? Yes, if your income is large enough to afford the payment on two mortgages. If you can afford a new mortgage but not two mortgages, you must induce your ex-spouse to refinance the mortgage in her own name. Such a provision should have been part of a separation agreement. The only other possibility is to convince the new lender that the ex-spouse remaining in the house is sufficiently creditworthy that there is negligible risk of your having to meet two payments. That will require documentation that your ex has been making the payments on her own for at least a year.
By Jack Guttentag
Inman News®
As always, my family relies on referrals! I appreciate the opportunity to show others what level of service a true real estate professional can provide.
The Real Stuff: Mortgage Rates Going Up
Mortgage Rates Going Up
After six consecutive weeks of reaching all-time record lows, fixed-rate mortgages reversed course this week, starting to inch upwards, Freddie Mac reports in its weekly mortgage market survey. Even with the slight upward spike, interest rates are at historic lows, and home buyer affordability high, providing a strong incentive for those looking to buy a home.
30-year fixed-rate mortgages: averaged 3.71 percent
15-year fixed-rate mortgages: averaged 2.98 percent
Daily Real Estate News | Friday, June 15, 2012
As always, my family relies on referrals! I appreciate the opportunity to show others what level of service a true real estate professional can provide.
Friday, May 25, 2012
The Real Stuff: Arkansas Home Sales in April a Mixed Bag of News
Arkansas Home Sales in April a Mixed Bag of News
Sales Down 10 percent, Prices Up 10 percent
The number of homes sold in Arkansas decreased by 10 percent over a year ago while the average price of those homes sold rose by 10 percent. The average price of the homes sold in the 43 county area surveyed by the Association increased from $138,642 in April 2011 to $150,153 in April 2012.
As always, my family relies on referrals! I appreciate the opportunity to show others what level of service a true real estate professional can provide.
Monday, May 21, 2012
The Real Stuff: Are you getting the technology promised?
Are you getting the technology promised?
Apparently not. I read an article about someone amazed by the fact that their local agents didn’t know how to use, what is now, common technology tools for the real estate industry.
After having a big brokerage for 5 years, I have now streamlined by operations and focused on providing my agent teams with the latest technology tools and one on one mentoring, training and coaching. Regardless of what you think, the name of the agency doesn’t improve your personal business at all. I take listings and buyers from the ‘big boys’ every week. Why? Because I show my clients the latest tools and techniques to satisfy their needs….to sell a home and/or buy a home.
The article I read mentioned that all the ‘big boy’s’ websites promoted themselves as being on the cutting edge of technology….yet a majority of their agents don’t use the latest technology tools. Especially the ‘old school’ agents who have been around for awhile. The ads are there, but the substance is not.
A few weeks ago, a local agent was shocked that I didn’t have a fax. Are you kidding me. I told him a fax machine was not needed anymore. He needed to scan the material and email it to me. After he caught his breath, and I held my ground that I was really telling the truth and didn’t have a fax machine, he finally admitted that he had scanning capability, but would have to figure it out. Are you kidding me? The fax machine has been on the obsolete technology list for a few years now. If you have a fax machine, get rid of it. Not needed.
Oh, yeah. This same agent who was shocked that I didn’t have a fax machine also still hand writes his contracts and still gets original signatures, from him, his broker, and his two clients. We now have the capability to complete our contracts online and send them for electronic signatures to our clients, our brokers, and our co-op agents. All without printing one piece of paper. Everything is online and stored in the clouds.
The author of the article stated, “The ability to get a signature from clients quickly and electronically can greatly reduce the amount of time, stress and work that can go into finalizing a contract. Buyers and sellers love to be able to sign electronically because it makes the transaction easier and less stressful for them too.” Don’t we all want something that is easier and less stressful?
I use other technologies like Dropbox to store training material, forms, videos, etc so all my agents have access, remotely, to our agency material. I even use dropbox when sharing large amounts of data and paperwork with other co-op agents. I put the paperwork in my dropbox account and share it with whomever I want….agents, clients, brokers, etc. It is secure and quick. .
Today’s real estate agent and agency is much different than it was even 5 years ago. The clients are online and expect the latest technology tools, and keeping organized is a major benefit to protecting our clients during the largest financial decision they are making for their family.
It is great to see some local agents with a IPAD to present their listing presentation on. But the technology usually stops there. Those same agents using the IPAD still think open houses and newspaper ads will sell the house. Wrong! I sell my client’s homes for more money and in less time than other local agents, yet I have never advertised in the local newspaper. Where does the success come from? From having a true, “cutting edge technology” strategy including online advertising, online communication, and technology management. That is what makes the difference for today’s buyers and sellers.
So what is the point of all this? If you are looking to be a client of mine, buyer or seller, be assured that I have and use the latest technology programs available to satisfy your needs. If you are an agent, looking for success, wouldn’t it sound better to work with someone who is on top of the latest technology that will improve your success and lower your stress, and provide the training you need to use the tools and incorporate them into the current “tried and true” real estate strategies. With today’s technology, I can have a streamlined office atmosphere, less overhead, more efficiency, and pay my agents higher splits.
Buyer, Seller, or agent: Which real estate company has the best technology? Can they prove it? What does it look like? What is it? Just because they say they have it, are the agents using the technology?
As always, my family relies on referrals! I appreciate the opportunity to show others what level of service a true real estate professional can provide.
Friday, May 18, 2012
The Real Stuff: Positive Signs Abound for Housing
Positive Signs Abound for Housing
Just announced: The first quarter of 2012 was the “BEST” first quarter for real estate in five years, and pending contracts suggest that the second quarter of 2012 will be the best second quarter in five years!
And the icing on the cake is that the second half of this year could be even better than the first. Oh, keep it coming! With rental costs increasing and home affordability so good, we are moving forward in the housing industry. Let the flood gates open. Now is the time to buy low, opportunities are still out there, and home prices are starting to surge.
As real estate improves, consumer psychology around home ownership will change. Along with job growth and stock market gains, conditions are right for a sustained housing recovery. Sweet!
As always, my family relies on referrals! I appreciate the opportunity to show others what level of service a true real estate professional can provide.
The Real Stuff: Another house sold. Buyer activity is good
Another house sold. Buyer activity is good
Congratulations to Chad and Patti on the sale of their home! Sold above asking price, in 9 days!
As always, my family relies on referrals! I appreciate the opportunity to show others what level of service a true real estate professional can provide.
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