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.
Thursday, May 17, 2012
The Real Stuff: Bank of America offers relo assistance to short-sellers
Bank of America offers relo assistance to short-sellers
Bank of America says it will provide up to $30,000 in relocation assistance to delinquent borrowers who work with the bank to obtain a preapproved short-sale price. Short sales must be initiated by the end of this year, and payments may range from $2,500 to $30,000. This program is available in Arkansas.
If you are experiencing difficulty in making your house payments, or feel that you can’t sell your home for what you paid for it, or enough to cover the outstanding mortgage debt, call me about a possible short sale option. Do not think that a foreclosure is your only option! With a short sale, I can get the bank to forgive your debt and the lender will pay all of your real estate and closing fees. It is possible that you have no out of pocket expenses, and you get relocation money! Short sales create a win-win situation for the homeowner and the lender. They are becoming more popular than a foreclosure, and lenders are shorting their decision times to within a month.
Regardless of who your lender is, a short sale is a better option for you and the lender!
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 11, 2012
The Real Stuff: 2012 2013 Forecast is UP!
2012 2013 Forecast is UP! Based upon the estimated numbers from the National Association of REALTORS, 2012 and 2013 will experience increase in home sales. We will also see home prices go up by 2% each year, and interest rates pushing 5% by 2013. This is wonderful news for our industry. But, if you are thinking of buying a home, now is better than later. Higher prices and higher interest rates mean less house or higher payments in the future. If you are thinking of selling, now is the time since prices have seen slight increases and buyer demand is high. Plus the lower interest rates help keep the cost down for you on your next home.
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.
Wednesday, May 9, 2012
The Real Stuff: Home Prices Rising #2
Home Prices Rising #2. Even nationwide, prices are up. Look at the swing since December 2011 on the attached chart! What does it mean? For buyers, you probably missed the bottom, but now is still a great time to purchase since increases may continue. For sellers, prices up means higher demand. Good time to sell!
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: Home Prices Rising
Home Prices Rising in March 2012! Up almost 5% compared to a year ago, statewide.
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.
Tuesday, May 8, 2012
The Real Stuff: Another Happy Buyer....& Seller
Congratulations to Mather and Samantha! They are the proud owners of a new home for their family.
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: Bank of America Writing Off HomeOwner's Mortgage Debt
BofA Starts Writing Off Borrowers’ Mortgage Debt
More than 200,000 underwater home owners with mortgages through Bank of America may be eligible to have a reduction in the amount they owe on their loan, which could possibly trim their monthly payments by up to 35 percent. Bank of America has sent letters to home owners who may be eligible to take part in a program to write-off a portion of underwater home owners’ mortgage principal, reducing it by, on average, $150,000 each.
Home owners eligible for the principal write-offs must be “underwater” (owing more on their mortgage than their property is currently worth), have a loan owned or serviced by Bank of America, and be at least 60 days behind on their mortgage payments as of the end of January. In order for the mortgage reductions to be made permanent, home owners must make at least three on-time payments.
Wow, this is huge news. As one of the largest lenders in the country, BofA is ‘eliminating’ on average, $150,000 per loan. If you received a letter, this may be a great option for keeping your home. If you are too far gone, and can’t make up the payments, and participate in the program, remember there is another option beside foreclosures. Bank of America is a large participant in short sales, which save your credit score and cost the bank less out of pocket expenses than foreclosure. I will be glad to discuss the process and advantages of a short sale. Short sales are a win-win position for you and the lender. Foreclosure is a lose-lose for both!
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 4, 2012
The Real Stuff: Home Buying Gets Another Boost in Affordability
Home Buying Gets Another Boost in Affordability
Borrowing costs for home ownership just got a little cheaper as mortgage rates took another dip to new all-time record lows this week, Freddie Mac reports in its weekly mortgage market survey. 30-year fixed-rate mortgages averaged 3.84 percent reaching a new historical low. A year ago at this time, rates averaged 4.71 percent.
We know that all good things must come to an end, and interest rates will begin to increase, especially as we get news of the economy rebounding slightly. If you are thinking of purchasing a home, now is the time to get the best interest rates of all time which means it will cost you less. If you are thinking of selling, these rates help you as well because it will increase buyer demand and traffic.
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.
Thursday, May 3, 2012
The Real Stuff: Arkansas First Quarter Home Sales Up 6%, Average Price Up 3%
Arkansas First Quarter Home Sales Up 6%, Average Price Up 3%
March 2012 Prices Up 5% Over 2011
Yeah! It’s looking better! The number of homes sold in Arkansas in the first quarter rose by 6 percent over a year ago. The average price of those homes sold rose by 3%. For the month of March the number of homes sold increased 1 percent and the average price for the month increased by 4 percent over March 2011.Why? Great interest rates, that have started to tick upwards. Good inventory levels, affordability is great, and buyer confidence is improving.
National median existing-home price - $163,800 in March, up 2.5 percent from March 2011.In the South, existing-home sales slipped 1.1 percent in March but are 3.6 percent higher than a year ago. The median price in the South was $146,500, up 6.2 percent from March 2011.
Monday, April 30, 2012
The Real Stuff: 5 reasons it's smarter to buy than rent #5
5 reasons it's smarter to buy than rent #5
Build your wealth, not your landlord's: There are two other reasons why it can be smarter to purchase than to rent. When you purchase, you lock in a payment at today's interest rate. Assuming that there is inflation at the average rate of 2.54 percent per year (the U.S. average), 10 years from now your monthly payment will be the equivalent of 75 cents on the dollar. In other words, a $2,000 payment 10 years from now would be the equivalent of $1,500 in today's dollars. In 20 years, it would be the equivalent of $1,000 in today's dollars. In contrast, renters may continue to receive rent increases.
An additional benefit of homeownership: each month you pay your mortgage, you accumulate equity. In contrast, renters are paying down their landlord's mortgage, allowing the landlord to accumulate the wealth rather than them. Thus, in the long term, for some individuals it's almost always smarter to buy rather than rent.
Friday, April 27, 2012
The Real Stuff: 6 Reasons to Reduce Your Home Price
6 Reasons to Reduce Your Home Price
While you'd like to get the best price for your home, consider our six reasons to reduce your home price. These six signs may be telling you it’s time to lower your price.
1. You’re drawing few lookers
You get the most interest in your home right after you put it on the market because buyers want to catch a great new home before anybody else takes it. If your real estate agent reports there have been fewer buyers calling about and asking to tour your home than there have been for other homes in your area, that may be a sign buyers think it’s overpriced and are waiting for the price to fall before viewing it.
2. You’re drawing lots of lookers but have no offers
If you’ve had 30 sets of potential buyers come through your home and not a single one has made an offer, something is off. What are other agents telling your agent about your home? An overly high price may be discouraging buyers from making an offer.
3. Your home’s been on the market longer than similar homes
Ask your real estate agent about the average number of days it takes to sell a home in your market. If the answer is 30 and you’re pushing 45, your price may be affecting buyer interest. When a home sits on the market, buyers can begin to wonder if there’s something wrong with it, which can delay a sale even further. At least consider lowering your asking price.
4. You have a deadline
If you’ve got to sell soon because of a job transfer or you’ve already purchased another home, it may be necessary to generate buyer interest by dropping your price so your home is a little lower priced than comparable homes in your area. Remember: It’s not how much money you need that determines the sale price of your home, it’s how much money a buyer is willing to spend.
5. You can’t make upgrades
Maybe you’re plum out of cash and don’t have the funds to put fresh paint on the walls, clean the carpets, and add curb appeal. But the feedback your agent is reporting from buyers is that your home isn’t as well-appointed as similarly priced homes. When your home has been on the market longer than comparable homes in better condition, it’s time to accept that buyers expect to pay less for a home that doesn’t show as well as others.
6. The competition has changed
If weeks go by with no offers, continue to check out the competition. What have comparable homes sold for and what's still on the market? What new listings have been added since you listed your home for sale? If comparable home sales or new listings show your price is too steep, consider a price reduction.
Thursday, April 26, 2012
Can you believe it!
via myhzm.com
Yep, a home in Chenal Valley for under $260,000! And it's NICE! 19 Bouresse, Little Rock, for only $254,900.
The Real Stuff: Short Sales Speed Up
The Real Stuff: Short Sales Speed Up
“Short Sales take too long”. This is the typical response from potential sellers, buyers and real estate agents who could benefit from a short sale vs a foreclosure. Because of this one response, many people are losing their home to foreclosure, when there is another alternative that could save their credit, and their future home purchase ability. New laws will be put in place in June, that require lenders to respond within 30 days to a short sale offer. I am currently working on a short sale that begin in December of 2011. We still have not heard from the lender. This new law will speed up the entire process and be a great benefit to the local real estate market. Sellers will be able to get rid of a home they can no longer afford, buyers will be able to get a home with instant equity, and lenders will get bad debt off their books. Short sales are a win, win, win for all parties.
If you, or someone you know, are thinking foreclosure is your only option, please know there is another alternative. Short Sale. I am a short sale expert, and here to help. The process will get much easier soon.
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