Mortgages with Marty Qualls in Utah!

Marty provided exhastive and conclusive refinance analysis-Loan closing 9/30/11

2012-01-30T11:01:00.071-07:00

From the first day that we called you for help with our loan refinance, we knew that Alan Whitman (who referred us to you) was right on the mark when he told me that you were the "go to guy" for help with loan analysis. You gave us exhaustive, conclusive, and very helpful analysis to help us determine which loan product would be best for us.

We are very hard to contact and you were consistently following up with us with phone calls, e-mails and text messages every step of the way. We can’t thank you enough for the GREAT rate and low closing costs you were able to provide for us. It was amazing!

Here's what we would say to our friends and family of what to expect when working with you:

Marty is SUPER friendly :)
Attentive
Good at explaining details
Has great time management skills
Kept things quickly moving and updates with status

Brian and Charlotte Duncan
Mortgage Loan Closing 9/30/11

HARP 2.0 update: It's going to be a great program!

2012-01-26T09:13:00.000-07:00

January 26, 2012: UPDATE on the HARP 2.0 program:

I have learned and was able to review several key items about the HARP 2.0 program during an excellent Webinar I attended and am listing the bullet points below.

I will continue to update my Blog and Facebook Fan page with new information as it becomes available.

Call me at 801-540-5108 if you have any additional questions. :)

Present occupancy is NOT an issue. If the home was originally owner occupied when purchased or refinanced and now it is now non-owner occupied, this is okay with HARP 2.0. I am still waiting for individual guidelines and risk overlays will need to be reviewed before implementation.

Lender Paid Mortgage Insurance on the original loan IS allowed and the loan IS eligible for HARP 2.0 financing. It was pointed out that there could be an extra cost (which can be added into the new loan balance) from the Mortgage Insurance Company who is reissuing mortgage insurance on the new loan.

If the home is presently for sale, there is NO restriction and the home can still be refinanced with the HARP 2.0 loan (FAQ #14, Fannie Mae website). Investor Guidelines to be reviewed when received.

When is the loan available? Correspondent Lenders (Primary Residential Mortgage) will receive the updated guidelines and Fannie Mae Automated Underwriting System somewhere between March 17, 2012 and the end of March.

Who the loan needs to be placed with: New loans do NOT need to be placed with the original servicing lender.

I look forward to helping you with your mortgage questions and needs. :)

From the beginning of the process we felt comfortable-Closing 12/14/11

2012-01-23T11:06:00.009-07:00

This is now the 2^nd and 3^rd loan you have helped us with and each time you and your staff have made us feel comfortable from the beginning of the process.

As we have mentioned to you before, thank you to you and your staff for making the mortgage loan process smooth and enjoyable!

Pat and Clara Lynch

December 14, 2011 closing

I needed someone who would be persistent and patient, and you were both. Closing 12/20/11

2012-01-17T11:15:00.002-07:00

We came to you in 1993 for help with our first home purchase and even when I lost my job in the middle of the loan process, you worked with us until we found a way to get the loan closed. It was amazing and we have always been grateful for what you did for us.

You have kept in touch with me over the years and when it was time to refinance, you contacted me with options. Your help is priceless because I needed someone who would be persistent and patient and you were both.

We will refer you to our friends and family who want mortgage help that will meet their highest expectations. You always help us perfectly. Thank you!

Kirt Gaisford

Loan Closing December 20, 2011

We knew what to expect and there were no surprises! Closing December 28, 2011

2012-01-12T08:56:00.000-07:00

Marty, just a quick note to again thank you for helping us with our mortgage needs! You were helpful and informative and as a first time home buyer, there was a lot to understand.

You not only explained, but re-explained the details of the loan and what we were to expect so that there were no surprises! Because of your patience and communication during the loan process, we were totally confident that our loan was in good hands. Your processing team was great to work with!

We thank you again for helping us to get into our first home and we will not hesitate to refer you to our friends and family! :)

David and Kristin Sanders

Loan Closing December 28, 2011

VA loan limits for 2012

2012-01-10T05:25:00.009-07:00

VA loan limits in Utah: 2010 limits in BLACK, 2011 limits in RED, 2012 limits in GREEN

Davis County $423,750 $417,000 $417,000
Morgan 423,750 417,000 $417,000
Salt Lake 652,500 516,250 $594,550
Summit 652,500 516,250 $594,550
Tooele 652,500 516,250 $594,550
Weber 423,750 417,000 $417,000

The loan process went just like clockwork! Closing on August 26, 2011

2012-01-06T08:36:00.005-07:00

I had such a great loan experience with Marty! He did everything so perfectly in every way! My closing time frame was really tight and he and his staff rushed my processing and closing faster than I thought was possible. As a first time home buyer, by friends told me horror stories, but I never experienced anything they warned me about. The loan process went just like clockwork!

Processing had so much patience, I know, because I called and e-mailed every day to get a status update! lol! Thank you Kelsi!

I made the best decision to go with Marty and Primary Residential Mortgage! Thank you Marty!!!

Britney Breitweiser
Loan Closing August 26, 2011

Personal note from Marty: Britney knows how to have fun! We had a party at closing (lead by Britney of course!). During the party (closing) she counted how many times she signed her name at closing. In this picture-gram we are forming the numbers of the total times she signed! Love you Britney!

"I signed my name 37 times!"

The loan process has truly been painless-Closing December 20, 2011

2012-01-02T10:53:00.009-07:00

Marty, thanks for your help in a great experience again!! You and Rachel at Inwest Title have been and continue to be the best!!

The loan process has truly been painless, not arduous, and as simple as we could have imagined. We have had confidence in the advice you have given us from the moment we met you. Your advice and guidance has always been spot on. Thank you for the great work you do.
Pat and Clara Lynch
Loan Closing December 14, 2011

2012 Arriving Like a Lion!

2011-12-31T07:42:00.002-07:00

Consumer Confidence and Mortgage Rates are on the way up!

I am excited for 2012! I read in the Ogden Standard Examiner yesterday that in a recent GfK Poll (1000 adults with a margin of error of plus or minus of 4%) that 68% of Americans believe 2012 will be a better year than 2011!

In the past, when I begin to hear news of lower unemployment numbers and lower initial unemployment claims (9 weeks in a row!) and THEN I hear a report of strong consumer expectations, we are on the road to see increased real estate activity, SOON!

If low rates and low home prices are what you would like to take advantage of, DO IT NOW! With stronger economic reports, increasing real estate activity, and the European financial crisis out of the headlines, we WILL see HIGHER interest rates and HIGHER home prices in 2012!

Pending Home Sales Are Surging!

2011-12-30T07:38:00.008-07:00

Pending home sale contracts (PHSC) are NOT closed transactions, BUT it is a good leading indicator of the positive momentum we are experiencing in the real estate market.

Buyer's are Buying!

In the West, PHSC's surged to 14.9% higher than a year ago at this same time (November numbers) and led the nation. The fact that contract failure has been unusually high, may result in 1/2 or less of these contracts actually closing, but the higher numbers across the nation has been encouraging. I have previously blogged about the need for a full application, credit report and automated underwriting approval to accompany every submitted offer to stop this increasing problem of contract failure.

The last time PHSC numbers reached this level was in April, 2010 when first time home buyer's were rushing to meet the expiration of the tax credit available to them if they closed before April 30, 2010. What a mad dash it was!

With home affordability at an all time high (lower home prices, higher income levels, and historically low interest rates), coupled with with pent up demand, it is no wonder the November, 2010 PHSC number was the best in 19 months!

Marty is always watching out for me! Closing 12/23/11

2011-12-27T08:51:00.002-07:00

Marty, thanks for always watching out for me! Just 8 months ago we closed on our purchase and as soon as the rates went down enough to make it worth our while, you called us!

Thank you! Even though the process is complicated you always make it simple to understand.

Stacy Marble
Closing December 23, 2011

Has Housing Hit Bottom?

2011-12-21T22:15:00.001-07:00

I watched the Today Show 3 weeks ago and Matt Lauer interviewed Barbara Corcoran (multi-gazillionaire investor in New York City) and was asking her if the housing market has hit bottom yet?

I thought this was an interesting question and kind of chuckled because of course I knew better; "Of course it hasn't!", I yelled at the television screen. Or has it?

Then for the 3 weeks following this interview, positive economic news has come out: 1) more new home buyer traffic in model homes reported by builders (highest volume in 3 years!); 2) 5 weeks in a row of declining initial unemployment claims; and 3) a possible resolution to the European economic crisis announced today.

Because more economic indicators are pointing to the inevitable fact that we MAY have hit bottom (halleluja), I revisited the Matt and Barbara interview online and listened to her answers again.

"Barbara, what do we look for in a neighborhood to let us know that the Housing market has hit bottom and to know that we are buying a house at the right time in the right neighborhood", asks Matt.

5 things that Barbara Corcoran tells us to look for in a neighborhood to know we are buying in the right neighborhood at the right time (housing market has hit bottom):

1) Do you see new cars in the neighborhood-new car stickers in windows of inexpensive cars?
2) Can the neighborhood income afford the average house?
3) Are the cheap houses selling? The recovery always happens from the bottom-up, that is to say the cheapest homes sell first and then works it's way up to the most expensive homes.
4) What's the average price per square foot? This is when you need a Realtor to help, numbers don't lie; this is how you find the best buy!
5) Are there a lot of for sale signs? If so, the bottom hasn't been hit in that area, town or neighborhood.

Use Barbara's list of 5 items to buy the right house in the right neighborhood at the right time!

Your credit monitoring program WORKED! It got us into our home-Closing 9/12/11

2011-12-19T22:09:00.000-07:00

Marty, you began working with us 14 months ago and thank you for introducing us to your credit monitoring program! It worked!

You were persistent, you helped with our abundant questions, you were easy to contact and we loved how responsive you were to our texts and phone calls!

We appreciate how friendly and nice you are! Please thank your processing team for helping us with the Grant Program through Sunset City because that made all the difference in us getting in the home we wanted.

Your processor, Kelsi, is awesome!

Zach and Riley Foster, Closing 9/12/11

It doesn't take 20% down to buy a home!

2011-12-14T11:44:00.000-07:00

Surprisingly, most buyer's I am talking to (8 out of 10 buyer's I speak with are first time home buyer's) think that it will take a MUCH LARGER down payment to buy a home than is actually required. I regularly hear from prospective buyer's that they believe they need a down payment of 20%, or at least 10%, to buy a home.

Minimum down or ZERO down home loans are available!

Regular FHA loan financing: Through a short introduction of financing options which are currently available, I give prospective buyer's the good (GREAT!) news that FHA requires only a 3.5% down payment! For FHA financing you don't have to be a first time home buyer!

The minimum down payment money for FHA financing can come from several sources:

With tax refund time around the corner, sizable refunds are common.
Parents or grandparents can gift the down payment and all that has to be done is to ask (or beg them) for a gift of down payment money.
Maybe 401k money is tucked away and these funds can be accessed through a 401k loan.

FHA ZERO down loans: State Funded Programs allow for ZERO down payment if the first time home buyer has a better credit score than what is required for regular FHA loans. ZERO down loans are only available to first time home buyer's (or to VA eligible buyer's).

FHA minimum down and FHA ZERO down programs are helping buyer's to buy homes that are "on sale" and finance the purchase at all time low interest rates!

HARP 2.0 is here!

2011-12-01T15:32:00.001-07:00

As of December 1, 2011, HARP 2.0 will begin to help the underwater conventional loan homeowner who has not been able to refinance into a lower interest rate because they have little or no equity in their home (relative to their mortgage).

Click here for the HARP 2.0 tutorial on how to get started: HARP 2.0

Call me at 801-540-5108 to begin your HARP 2.0 mortgage application.

HARP 2.0 preparatory steps to take

2011-11-18T10:57:00.001-07:00

HARP 2.0 has waived ALL of the Loan to Value limitations and NO MATTER how upside down you are in your present loan, I can help you with a HARP 2.0 loan!

There are preparatory steps to take to be ready with your application on December 1, 2011 when the program is scheduled to roll out.

For the 5 preparatory steps, see my Blog tab "HARP 2.0" (on the home page of my blog under the picture of the Delicate Arch) or click here HARP 2.0 for the list of items needed to properly prepare for your loan application.

Call me with questions at 801-540-5108 or e-mail: Harp2.0@martyqualls.net.

Get your FULL credit approval first!

2011-11-16T09:40:00.001-07:00

An online "fast application", or a "pre-qualification" without a credit report pulled is causing problems!

Get a FULL credit approval letter before shopping!

At the recent National Association of Realtors (NAR) Convention in California, it was reported that TWICE as many purchase contracts are failing this year as compared to last year!

Realtors are taking phoney credit approvals from mortgage lenders who aren't doing their due diligence with their borrowers and then later the same lenders are finding that, OOPS, the borrowers credit, income, assets, or whatever caused the train to come off the track after the COMPLETE application information DIDN'T check out. :(

My credit approvals are always backed up by a credit report AND an Automated Underwriting System (AUS) approval. When my credit approval accompanies a purchase contract, all that needs to happen is the offer needs to get accepted, appraisal and title report received and close the loan!

Don't take a chance on a failed purchase offer because of the failure of the lender to do a FULL credit approval for the borrower. :)

The VA loan is the BEST loan out there! And it should be! Thank you Veteran's!

2011-11-11T11:04:00.002-07:00

I want to thank my Dad, Mel Qualls, for his Military service!

Is the American taxpayer footing the bill for HARP 2.0?

2011-11-11T10:35:00.000-07:00

As I read an article written in the Financial Times this morning it became clear to me that the Home Affordable Program enhancement that is to be released 12/1/11 has some far reaching American tax payer ramifications.

Underwater mortgage refinancing: Who's bailing out who?

Because mortgage loans greater than 125% loan to value cannot be included in regular Collateralized Mortgage Obligations (CMO's), the mortgages created in HARP 2.0 (this program targets homeowners who are REALLY upside down in their mortgages) are ultimately, created, insured and owned by Fannie and Freddie and can't be sold in a "regular" bond issue. These loans will need to stay on Freddie and Fannie's balance sheets for now.

So what's the rub and why can't they stay with Fannie and Freddie?

For now, holding onto the HARP 2.0 loans is not a problem. But because the Economic Recovery Act enacted 2 years ago (American Recovery and Reinvestment Act of 2009) mandates that Freddie and Fannie reduce their mortgage holdings by 10% per year, it seems unlikely that they will be able to hold onto these mortgages for the long run. So the questions becomes, "What do you do with a 300% loan to value mortgage loan?".

If in the future Freddie and Fannie would need to sell mortgages created by HARP 2.0, they would need to create a "special" class of mortgage backed securities which would be riskier (over 125% LTV) and would require a higher return in the secondary market (sorry, just a quick Economics 101 moment here: to sell mortgage bonds with higher risk you would need to pay investors a higher return on their investment in order for them to be enticing to investors and sell in the secondary market).

If the bond yield to sell them is higher, who pays for the higher yield payments to these investors (for up to 30 years because the mortgage backing the securities have a 30 year maturity)?

The answer is simple: Because Freddie and Fannie are under the conservator ship of the Government which IS the American taxpayer, WE get to pay the higher cost and yield on these HARP 2.0 loans to investors IF they need to be sold off of Fannie and Freddie's balance sheets.

Sorry, it appears that HARP 2.0 is just another burden the Government is putting on the American taxpayer.

VA loans up to $417,000

2011-11-09T12:46:00.001-07:00

I continue to be amazed that if a Veteran would like to purchase a home, VA will allow up to a $322,700 (inclusive of the VA funding fee) loan amount with a ZERO down payment! Higher loan amounts up to $417,000 are also available with a down payment.

VA financing for eligible Veterans and National Guard

The VA purchase program can't be beat for maximizing your return on dollars that don't need to be paid at closing for a down payment. Additionally, there is no mortgage insurance to be paid monthly, which, for a ZERO down loan is an unbelievable benefit!

Cash out refinancing with a VA loan can consolidate bills or get money to remodel your home and the loan to value goes up to 90%, which is 10% higher in loan to value than Conventional financing and 5% higher in loan to value than FHA (and FHA requires monthly mortgage insurance, VA does NOT!).

Eligible Veterans and National Guard have a great loan to take advantage of with the VA loan!

5 steps to avoid buying a money pit

2011-11-08T11:15:00.000-07:00

I read a great blog post today and wanted to share some ideas to help buyer's avoid buying a home that is going to cost them a lot of money later.

I have always encouraged home buyers to hire a professional inspector who goes through the home carefully and professionally BEFORE ordering the appraisal or at least before closing.

With a professional inspector by your side you can discuss the finer details of the report they have prepared, and you can benefit from their experience and ask questions about the following items.

Hire a professional to inspect your home before you close your home purchase!

How to avoid buying a money pit:

Attend inspections-when possible always walk through the home with the inspector, the additional insight, comments and "watch for this in the future" points they will bring out during the inspection walk through are priceless. THIS is my #1 best to do suggestion of the 5 points!
READ the report and the seller disclosures carefully- when in doubt, ask questions!
Get multiple repair bids-2-3 is really the minimum and caution and research here will save many repair cost surprises later. At this point, you have already paid the inspector for their knowledge, ask them questions about what the probable cost of a repair item might be. When out of the inspectors area of expertise, hire a licensed professional for more information (roofer, HVAC, electrician, plumber, structural engineer).
Stop overconfidence in its tracks! Even the easiest repair jobs will cost more and take more time than you think. I can remember clearly the time I replaced my toilet wax seal when I tiled my bathroom. It ALL takes longer than you think!
Prioritize price reductions and credits OVER seller repairs-to be in control of WHO does the repair and WHEN the repair is done, take a price reduction or a seller paid closing cost credit INSTEAD of having the seller do the repair before closing.

You did good Orrin Hatch! Freddie and Fannie did a bad one!

2011-11-07T15:00:00.000-07:00

Full article "$13M in Fannie and Freddie bonuses is an out rage!"

I am so happy that Orrin Hatch is my Senator! The full article is linked here if you would like to read it. I have been following this as I became aware of, and angered by, the news that Fannie and Freddie executives received bonuses from US taxpayers who are keeping the two agencies afloat.

Hatch, along with 58 other Senators, are demanding tighter oversight of funds paid to these two entities. Way to go Orrin and other concerned Senators! We DO need to send a message to our fiscal leaders and demand that these things don't happen again!

What are Treasury Securities?

2011-11-07T09:32:00.000-07:00

With $72B worth of Treasuries to be auctioned off during this Holiday shortened week, I thought it would be a good time to review what Treasury Securities are. Each type of securities and their auctions effect Bond prices and Bond yields.

Remember, the higher the bond price when they are sold at auction is usually good for Mortgage rates as Bond prices and yields move in opposite directions. The higher the bond price and the success of the auction will usually result in better mortgage rates. :)

Here's a quick overview of Treasury securities:

Treasury Bills, or T-Bills, are sold in terms ranging from a few days to 52 weeks. Bills are typically sold at a discount from the par amount (also called face value). For instance, you may pay $990 for a $1,000 bill. When the Bill matures, you would be paid $1,000.
Treasury Bonds pay a fixed rate of interest every six months until they mature. They are issued in terms of 30 years.
Treasury Notes, sometimes called T-Notes, earn a fixed rate of interest every six months until maturity. Notes are issued in terms of 2,3,5, 7 and 10 years.

Leno's "Video Metaphor" for the Federal Mortgage Relief Plan

2011-11-05T20:37:00.001-06:00

It's complicated. Call me for details. If your mortgage loan balance is higher than the value of your home, I can help with details on November 15th of the HARP 2.0 program coming out December 1, 2011.

Leno's "video metaphor"

Newly built home sales see gradual improvment

2011-10-31T21:35:00.001-06:00

Sales of newly built, single-family homes rose 5.7 percent to a seasonally adjusted annual rate of 313,000 units in September, according to newly released data from the U.S. Commerce Department. This marks the fastest pace of new-home sales in the past five months.

"Today's report highlights the gradual improvement in housing market conditions that is becoming evident in certain pockets of the country, as consumers who can surmount very restrictive lending standards to qualify for a favorable mortgage rate seize on this opportunity to buy," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev.

"The latest numbers also reveal that first-time buyers are driving the new-homes market right now, as evidenced by the volume of lower-priced, entry-level homes under contract. It's worth noting that these consumers are very dependent upon federal policies and programs that support homeownership, such as the mortgage interest deduction and low-downpayment mortgage options that have been threatened by recent government proposals."

Property Inspection Top 5 for Buyer's

2011-10-29T11:41:00.002-06:00

When purchasing a home, the buyer should be aware of and make special note of these top 5 items as they go through a home inspection with their hired professional company or if they do the inspection themselves.

These are tough things to catch, I see them either missed or overlooked when a buyer does the inspection themselves, and are EXPENSIVE to fix. Catch the problems BEFORE you become the new owner (I always recommend hiring a professional inspector) and the expense and responsibility to repair the items becomes the sellers-NOT YOURS!

Foundation-walls in basement shows past water leaking, water seal paint has been applied but is flaking off, foundation is heaving out into the room, check for window well leaks.
Roof-curled shingles, leaks in the attic, check for shingle flexibility by putting a ladder up onto to the roof and actually bending the shingles. If there is or has been a swamp cooler, check around the swamp cooler area very carefully outside on the roof and in the attic for past leaking.
Electrical-needs to be at least 100 Amp system, be wary of screw in fuse systems which can be checked off and acceptable in an inspection, but may still want a licensed electrician to inspect.
Plumbing problems-check for leaks under the sinks, around toilets, around washing machine
Heating and A/C-these need to be matched to the house size. Once the furnace and air conditioning unit brand is found, Google the manufacturer and it will tell you the size of home the unit was designed for

Housing sales stronger in September, 2011

2011-10-26T11:12:00.000-06:00

Click Here for My Featured Chart

Stronger housing sales, increased employment numbers, positive news out of Europe; all of these things could lead to higher interest rates. I can review your refinance or purchase options with "One Quall, that's all!" before these historically low rates vanish. :)

What does a Bond Chart tell you?

2011-10-11T21:56:00.001-06:00

The beautiful thing about a Bond Chart is that it tells you where Bond prices have been and where Mortgage rates have been. Can they tell the future? Sometimes. Here's how.

I study the bond charts all day long and I understand there are economic data or world news that negatively or positively influences the prices of bonds. If bond prices go up, rates go down. And vice versa, if bonds go down, rates go up.

So back to "how can the bond charts tell the future"? The answer is simply this: History repeats itself. You either love or hate history and it's the same with watching bond charts. You either love it or you hate it and I love bond charts!

Because I watch Bonds all day long, I get familiar with floors of support and ceilings of resistance and can advise with a learned level of confidence a direction a client might consider and whether they should float or lock their interest rate.

Divorce and splitting equity in a home with a mortgage loan

2011-08-10T10:59:00.002-06:00

Many times divorce requires one or the other of the ex-spouses to refinance the home mortgage. The refinance accomplishes two things: 1) removes the other ex-spouse from the mortgage and the warranty deed and, 2) creates funds to pay out a portion of the home's equity to the ex-spouse signing off their interest in the home.

There are MANY options for refinancing to accomplish divorce decree requirements and finding the right one for the individual situation requires a broad product mix to be available.

My lending experience has uncovered the complex rules regarding the length of child support receipts, the amount of child support which can be counted when looking at the divorce decree and age of the children, and how much of the income can be be counted as a percentage of the total household income.

I also rely on my trusted CPA Professionals to advise my clients on tax issues and questions when they arise. A few examples of tax implication questions I have come across in the past: 1) divorce and property division, 2) 1031 exchanges and what benefit would be served by considering it, 3) equity division through home refinancing and future purchase of another property, and 4) future rental home purchase with equity coming from a divorce settlement.

I enjoy helping with divorce and equity division loans and will share my knowledge and expertise to make sure all parties are happy with the results.

Top 3 Mortgage Application Hot Spots

2011-07-21T19:01:00.001-06:00

As I thought through the past 6 months of loan applications I realized how important it has been to remind my mortgage loan clients of 3 things. These 3 things speed up the processing of their loan application, prevent delays in processing, and document their file with critical information in advance of when it is needed (at final underwriting, which is just before closing, and can hold up closing). These 3 items of special importance are worthy of their own Blog Post!

The importance of borrowers NOT applying for credit (going to RC Willey's to shop for furniture and applying for credit), or allowing a creditor to access a credit report (a harmless test drive at the car dealership?) cannot be overemphasized! With new credit inquiries the file may need to go back to underwriting, after a new credit score is calculated, and what if the credit score drops? The mortgage rate may now be higher or what if the score is on the cusp of approval, drops 3 points and now is DENIED? Don't shop for credit, don't allow credit pulls. Don't!

Don't change employment! This one is self explanatory. Even with warnings, I have had borrowers do it. What if the new job has a mandatory probationary period? Don't change jobs!

The last item is a "heads up", we need this as soon as it happens. As soon as the Earnest Money Check clears the checking, savings, money market, stock account; PROVIDE proof that the check has cleared the account (front and back of the check, withdrawal of the cashiers check with a copy of the check face, bank statement showing check has cleared the account). This allows a CREDIT of the earnest money to be given at closing. IMPORTANT!

IRA withdrawal for down payment for first time home purchase

2011-07-20T18:46:00.001-06:00

If you have been saving money in your tax deferred IRA and now want to buy your first home, how can you get your hands on the money locked up in your IRA without a penalty? WITHDRAW IT! Here is an excellent article to explain the details..and call me if you would like to review your mortgage options.

You can withdraw up to $10,000 for qualified acquisition costs of your first home and not pay a 10-percent, early withdrawal penalty on that amount. A 10-percent, early withdrawal penalty is imposed on IRA withdrawals before age 59½, unless an exception such as first-time home purchase applies.

To qualify for treatment as a first-time home buyer distribution, the distribution must meet all the following requirements.

It must be used to pay qualified acquisition costs within 120 days after the day you received it.
It must be used to pay qualified acquisition costs for the main home of a first-time home buyer such as you, your spouse, children, grandchildren or ancestors.
You have not withdrawn $10,000 previously for a first-time home purchase.

If both you and your spouse are first-time home buyers, each of you can receive distributions of up to $10,000 for a first home without having to pay the 10-percent additional tax. But this would have to come from separate IRAs (i.e., yours and hers). Since the $18,000 came from your IRA and your maximum exclusion is $10,000, you are subject to the 10-percent penalty on the excess: $8,000.

Qualified acquisition costs include the following items.

Costs of buying (such as your down payment), building or rebuilding a home.
Any usual or reasonable settlement, financing or other closing costs.

If you and your spouse have not had a home for more than two years, this will be considered a first home.

Why Buyer's Should Get Off The Fence

2011-07-08T07:12:00.003-06:00

In this article, why should I start with interest rates as to why potential buyer's should get off the fence? Strong economic factors are weighing in on interest rates daily and when the recovery gets feet underneath it, rates will move up quickly and not look back to the levels we have today. Rates today are the best we have seen since December 13, 2010 and we have had 8 consecutive weeks of dropping mortgage rates.

Housing prices are officially in double dip territory and prices are allowing buyer's to see dreams come true with homes prices and low interest rates giving them a payment that fits into their budgets. Considering the home mortgage interest tax deductibility safe for now in our tax code, the advantage of interest and private mortgage interest tax breaks figures favorably into future homeowners benefit balance sheet.

And add mortgage financing into the mix of reasons and this may be the biggest factor of all to consider buying a home now. FHA has recently been talking about increasing the down payment from 3.50% to 5% and conventional lenders are consistently sending a message of higher return (higher interest rates) for higher risk borrowers (lower credit scores and higher debt to incomes).

A strengthening economy inevitably pushing rates higher, the highest affordability index since 1963 (home price, household income and low interest rate measure), and looking at potentially a more difficult loan qualification situation in the future are the 3 reasons I believe buyer's should get off the fence. Read more here about why buyer's whould get off the fence. When you have mortgage questions, call me for a personal consultation regarding your financing options.

How are the summers of 2003 and 2011 the same?

2011-07-07T07:19:00.001-06:00

According to a S&P/CaseShiller Home Price Index report just released, home values in the United States in April 2011 have returned to an average level of value which was last seen in the summer of 2003.

Excellent purchase opportunities continue for first time home buyer's and for investor property purchasers. With the home affordability index at the best level seen since 1963, call me if you would like to review your purchase options.

Why loans are now FULL Documentation with NO exceptions

2011-07-06T08:01:00.002-06:00

"I have NEVER been under the microscope in ANY of my other mortgage loan applications like I have been this time!", said my "perfect" (they really were a perfect borrower) investment property borrowers after visiting with them about some underwriting conditions in my office the other day.

Many things have changed in the mortgage lending world over the past 3 years; some occurred subtly and other suddenly.

Why are ALL loans now so accurately and completely documented? This is the subject of my Blog post today.

EVEN PERFECT borrowers with walking on water credit scores, several retirements worth of reserve income on deposit, and no obvious reason for concern regarding their ability to repay the mortgage debt are paying the price of Mortgage regulation.

WHY all the scrutiny?

Why do loans need to be FULLY Documented with NO Exceptions?

Here's the short list?

Initial Loan Application Accuracy

If the initial loan application isn't complete and if there are too many changes from the initial application to the final application the loan is UNSALABLE in the secondary market. Banks have the lowest deposit to loan ratio in 16 years. Do they want to service a loan for 30 years or sell it on the secondary market? They want to sell it! COMPLETE loan application information with ALL the blanks filled in with correct, accurate, verified information is necessary!

NEW Mortgage Lending Laws since 2008

What if the loan successfully closes and is delivered to the secondary market BUT because we have new laws over the past 3 years that govern everything from the application to the appraisal, otherwise know collectively as GFE / TIL / MDIA / DODD-FRANK the loan could potentially be unsalable in the secondary market. Auditing refinements and additional technology support will make these rules and regulations even more fundamental to the definition of file quality. More regulations are to come. Savvy attorneys will make the financial risks of file error greater than ever; downstream investors will not want to hold this risk - which means faulty files will be pushed back as repurchases without question.

EASE of information gathering (in quality control from Underwriting to pre-investor purchase to post investor purchase) NOW requires the information to be as accurate as ever!

Documentation requirements have clearly gone overboard, but I don't suspect we will return to days of old.

Need for appraisal quality

The upcoming appraisal changes are the next step on the continuum of technological advances in our business. I have 3 files in process which required-for different reasons-a 2nd appraisal, which in turn necessitated more processing time, more expense to the lender (the cost of the additional appraisal can't be charged to the borrower if not disclosed on the initial Good Faith Estimate), and delayed closing times. The present appraisal rules are just another beginning to more changes.

Counseling IS an effective tool to PREVENT Forclosure!

2011-07-05T07:39:00.002-06:00

The probability of staying in your home (if you are in financial difficulty) can be increased dramatically (in certain cases, up to 200% improvement in your chances) if you receive financial counseling!

The latest report from the Homeownership Preservation Foundation (HPF) makes a compelling argument for continuing support of Home Owner Counseling opportunities be made available to struggling homeowners.

During my loan application process I have a form that which says (and this is how I explain it, in layman's terms): "The mortgage company doesn't want your home back. If you get in trouble, they will offer counseling and will help you stay in your home."

Until I read this article, I wondered if the mortgage servicing companies really had success with their customers who went through counseling. Here is the article which tells me that we are successful in helping homeowners stay in their homes: Counseling is an effective tool to prevent foreclosure

Happy 4th of July!

2011-07-01T14:45:00.000-06:00

On July 4th we celebrate our country's birthday, the freedoms we enjoy, and the American way of life! We hope you have a happy Independence Day. Thank you for choosing us for all of your mortgage needs. Marty

VA Loans are Excellent for Active duty, Retired and Reservists

2011-07-01T07:31:00.000-06:00

VA doesn't guarantee you will qualify (#1 wrong assumption I have heard over the years from Veterans I have helped), but the VA loan is awesome! ZERO down and NO monthly private mortgage insurance!

Benefits and Q & A about why VA loans are awesome! I am ready to help with your VA questions. Contact me at 801-540-5108.

The American Dream and Government Intervention

2011-06-30T09:03:00.000-06:00

A poll taken a week ago by The New York Times and CBS News indicates that 9 out of 10 respondents think buying a home is a good investment and worth the up and down value ride they experience. 45% say the Government should do more to help the Mortgage market problems and 53% want Government to give direct financial benefits to borrowers in financial trouble. Almost none of the respondents want the tax deduction for mortgage interest to go away (this has been included in several Government budget balancing scenarios). Read the entire American Dream article here.

Be Smart About YOUR Closing Date and get a better interest rate!

2011-06-30T08:19:00.001-06:00

When you are negotiating a closing date and you can get to a closing date that is WITHIN 30 days, DO IT! This is the surest way to make sure that your rate is the best rate you will be able to get.

If the closing is within 45 days and you WANT to lock your interest rate, the rate will be approximately .125% higher (about $15/month higher in payment than a 30 day lock).

Here is a great article about why it pays to be smart about your closing date.

Epic Refinance Opportunity is HERE, TODAY!

2011-06-29T09:36:00.002-06:00

There's a Refi Boom Starting. Don't Watch It Pass.

Mortgage rates look like they'll fall some more, but don't sit by and wait for something better.
History has shown that mortgage rates can -- and do! -- change quickly. And because rates are unnaturally low to begin with, once they start to worsen, they should worsen in a hurry.
Exploit today's market while you still can. Call me at 801-540-5108 and I can go over no
cost refinance options with you.

What's keeping a lid on home prices?

2011-06-29T07:53:00.001-06:00

Anticipating and predicting a change of direction in home prices is difficult at best. Many factors play into our market and are keeping a lid on home prices today.

Because home prices are now at levels not seen since 2003, home buyer's have anxiety (read the article here) and additionally I am seeing softer prices because there is a lack of acceptable inventory with fewer buyer's making their way into the market.

With a smaller inventory in relation to buyer's entering the market, how does the general home buying population find a home that meets their needs in this market? In this article I want to talk about the FHA 203k loan as a possible catalyst to provide a larger inventory of acceptable homes to buyer's.

Since the first of the year, I am beginning to hear more requests for information on the FHA 203k loan than at any other time in my mortgage career which began in 1991 and I think it is because it allows buyer's to purchase the "wrong home in the right neighborhood" (read more about the FHA203k loan here) which could help more buyer's find the right home for them. The 203k loan will help stabilize home values quicker than any other options available to the Government today. Additionally, more that 100 million homes in the US were built before 1990 and almost every one of these homes would benefit from some amount of renovation and modernization.

While we wait for a different inventory and more plentiful inventory to appear in the Real Estate Market, maybe the 203k loan is worth looking into. Call me if I can help.

Here comes the refi boom of 2011

2011-06-28T09:39:00.002-06:00

We're on the brink of something big. A wave of uncertainty about Greece and its debt, plus weaker-than-expected economic data at home, has dropped conforming 30-year fixed rate mortgage rates to levels not seen since December 2, 2010.
Here comes the refi boom of 2011!

It's been 8 straight weeks that mortgage rates have dropped. 8 weeks. Not even last year's historic Refi Boom produced a winning streak of 8 weeks. This year's streak is historic. Call me at 801-540-5108 to review your no cost, low cost or full cost refinance options.

9 week Mortgage Rate Forecast

2011-06-28T07:45:00.001-06:00

Forecast
Interest rates have moved downward this late spring on increasingly poor economic news and inflationary leveling, so much so that the idea of a QE3 (Quantitative Easing 3) has gotten some play. We never say "never", but we're comfortable in saying that it's not going to happen during this forecast period. The downshift in growth probably has a number of facets, including but not limited to interruptions caused to the Japan disaster and our near-historic Mississippi river floods. The next few weeks will probably bring more of an accumulation of poor economic data, but the four or five weeks after that may bring new glimmers of economic life. As such, we should start low and probably end somewhat higher in terms of rates.

For the next nine-week period, we think that the overall average for 30-year fixed-rate mortgages will run in a channel from 4.70% to about 5.10%. For Hybrid 5/1 ARMs, low funding costs and some increased appetite by portfolio lenders will probably serve to move those rates between 3.30% and 3.75%, and for conforming 30-year fixed rates, we see a range of 4.50% to 4.90%

Shocking how much good landscaping improves your home's value

2011-06-27T17:44:00.003-06:00

A Virginia Tech study from 2009 suggested that landscaping and pristine lawns help increase property values by an average of 7.5%. A home valued at $150,000 with no landscaping could be worth up to from $8,000 to $19,000 more with a sophisticated landscape with color and large plants, the study said: "Relatively large landscape expenditures significantly increase perceived home value and will result in a higher selling price than homes with a minimal landscape."

I read this article AFTER tearing out landscaping in our back yard and my wife and I are going to get busy sooner than later and get things going (growing) again! :) The saddest part of taking down the trees has been that I don't hear the birds outside my window singing me awake in the morning!

Paying off your mortgage is a different kind of investment

2011-05-19T07:22:00.001-06:00

As I read this article I thought of how many of my clients pay extra toward their mortgage each month in hopes of getting their mortgage paid off sooner rather than later. 8 out of 10 of my clients have regularly paid extra principal payments for most of their mortgage term.

I also thought of my fellow Business Network International friends who state in their biographies of what their #1 goal is. The majority say that their burning desire is "to be debt free!".

Considering the real desire of those I help and what my friends and family tell me, I found the following article interesting because it brings a great argument to the table about, "Why should we (or why should we NOT) payoff our mortgage.

I share formulas for early mortgage payoff. They are simple and my clients like to hear how to payoff their mortgages early, They like the idea. I like telling them how to make it happen. It makes me happy that I told them about how to do it and they really like the idea of paying off their mortgage early. Best of all? Paying off your mortgage early is easy, it just takes discipline.

BUT here I beg the question, "Why should a mortgagee payoff their mortgage early?" When you have a mortgage, there are tax benefits and tax savings. Returns on a well diversified stock portfolio have a historical return of 9-12%. Why pay off early when your interest rate is sub 6%? Lots to think about before jumping into an accelerated Mortgage payoff schedule.

Here is the article to continue the argument for holding onto your mortgage as a GOOD (if not GREAT Investment): Should I payoff my mortgage early?

Is it time to downsize?

2011-05-03T07:46:00.001-06:00

After reading this article Downsizing Boomers I thought of my Dad who turns 82 this September and my friends who are 12 years older than me and turning 65 this year. I realized that when it comes to downsizing your home, what do you do with all your stuff that you have accumulated over the past 30 years?

And, what do you do with your house that is too big which you want to sell so you can downsize? I can help with a referral to a Real Estate Professional to help sort through all the details and information you have and need.

And, what about all the STUFF in the house? THAT is overwhelming. Maybe not so overwhelming for someone my age, or someone 65, but for an 82 year old, yes, overwhelming! I can suggest names of auctioneer professionals who specialize in profitably disposing of 30 years of accumulation.

I can also offer assistance to downsizing Boomers to analyze mortgage options (Reverse Mortgages now can be used to PURCHASE a home!) and get you in the right mortgage for your retirement years!

How Foreclosure Affects Your Credit Score

2011-04-28T10:48:00.001-06:00

Foreclosures--and how you handle them--may have long-term credit score implications.
Payment history makes up the largest portion--35%--of your FICO score. And the higher your credit score, the harder you will be hit by a foreclosure, or by whatever alternate route you take because becoming delinquent on your debts had not been a regular occurrence. That is, if you've been good until now, one late payment has a disproportionate effect.

The biggest negative hit comes with your first late payment. If you have a credit score of 780, your first late payment could reduce your score by 90 to 110 points. And if your score is 680, it could fall by 60 to 80 points, according to Barry Paperno, consumer operations manager for myFICO. With a second late payment, your score could be hit by another 50 or so points.

If the loan goes to foreclosure, still another 50 points could be knocked off your score. If your lender doesn't immediately report your late payment to the credit bureaus, the delay could make an even greater hit when it finally is reported.

Proper management of delinquency

However, with the first late payment on your mortgage, you can consider alternatives that may prevent you from going all the way to foreclosure, an event that probably will prevent you from buying another home with a mortgage for at least three to five years because of how lenders view a foreclosure and because your score will be so low.

A loan modification commonly is reported to the credit bureaus as "partial payments being accepted," which in terms of credit damage, is scarcely different from a 30-day late home. But you have a better chance of keeping your home and limiting damage to your credit score if you can get a trial modification under the federal government's Home Affordable Modification Program (HAMP).
You should know that lenders use codes from the Consumer Data Industry Association (CDIA) when reporting loans to credit bureaus, where they ultimately influence FICO scores. At first, the loan ends up generating an AC code, which indicates that partial payments are being made--not much help.

However, when that three-month trial period is successfully completed and the trial modification is converted to a permanent modification, the loan gets the CN code, which indicates the loan was modified under a federal government plan. This new CN code, which lenders are free to use or not use, does not currently affect the score because FICO has yet to assess its strength as a risk predictor, according to myFICO's Paperno.

Other loan modifications, such as those done under a lender's own program, may be or may not be reported as partial payments without violating the Fair Credit Reporting Act. In general, get some understanding of how the bank is going to be reporting any potential resolution, advises Paperno.

And as you live up to the terms of your new permanent modification, those late payments keep moving further into the past and the size of the dings on your credit score keep shrinking. At the same time, as you make your new, reduced payments on time, your score will begin rising. And because your new monthly payment is lower, your monthly debt obligation is lower as well, again helping raise your credit score.

Other choices and implications

As an alternative, a forbearance agreement requires you to make reduced "good faith" payments for two to six months to re-establish a positive payment history, after which you may have to resume your original monthly payments or continue reduced payments under a loan modification and sometimes immediately pay off the missed amounts. A forbearance agreement, as a partial payment program, would have the same impact on your credit score as a trial modification.

Other options include a deed-in-lieu of foreclosure, under which you turn ownership of your home to your lender, or a short sale, which is a sale for less than you owe but that is accepted by your lender as full payment. There are advantages to each, but Fair Isaac, developer of the FICO score, stresses that contrary to popular belief, foreclosure, short sale and deed-in-lieu will all have a similar impact on the your FICO score.

Other factors can affect credit scores and their ability to bounce back after any event, and please check with me about for the details in your particular situation.

State law also can affect your credit status. If, with a short sale, the proceeds are less than the amount of principal still owed, it could be treated as a charge-off and, in states that allow deficiency judgments, you could be on the hook for the difference.
If you are in the Home Affordable Foreclosure Alternatives (HAFA) program, the lender must agree not to come after you for the deficiency judgment. However, even in states where lenders can't come after you, the rules can be complex, so be sure to have a lawyer review your paperwork.

If a deed-in-lieu or short sale is reported as a charge-off, a "settled" debt, a "debt satisfied for less than the full amount" or as "not paid as agreed," the impact to your score could be the same as that caused by that first late payment. Ideally, you want your debt reported as "paid in full," "paid satisfactorily" or as a "total satisfaction of debt."

Generally, a deed-in-lieu, a short sale or a foreclosure, including those that occur after walking away from your home, are all reported the same. Once reported that's the end of it, except for the steps you will have to take to start rebuilding your credit score, and finding another place to live, which will have to be a rental property: You won't be able to get another mortgage for at least two years, and then only after getting your credit score up to at least 640 for an FHA-insured mortgage and 680 for a conventional mortgage.

Meanwhile, managers of large rental properties, who use credit reports and credit scores to determine whether potential renters are credit worthy, may hesitate to rent to you. So you should explore all your options in managing a mortgage delinquency.

Jerry DeMuth has written about mortgages and other financial issues for more than two decades for trade publications, major newspapers, and consumer magazines. His writing has received four awards and has been included in eight non-fiction books.

Rick Vigeant says, "thanks for lock-in with a great rate"

2011-04-27T05:30:00.001-06:00

Marty,

As always, it has been a pleasure working with you to refinance my home. I really appreciate you letting me know that mortgage insurance rates would be going up and allowing me to lock-in with a great rate prior to that happening! I will certainly recommend you in the future and have already given your business card to several friends so hopefully they will be contacting you soon if they haven’t already.

Thanks again,

Rick

Rick Vigeant

Home Staging Do's and Don'ts

2011-04-26T11:09:00.000-06:00

It's not easy to look at your own home with fresh eyes. You see a house full of memories and treasured possessions, but all potential buyers see is someone else's stuff. That's why we consulted several experienced home stagers to find out their top home staging dos and don'ts.

Karen Otto of Home Star Staging in Plano, Texas has had homeowners cry and walk out of the room when she tells them to remove sentimental pieces and photos from their home in order to stage it for sale. "I totally get it, but I tell them they're taking [the items] with them. We're not erasing their family from this home, we're allowing buyers to start seeing their experiences, dreams and memories in the home you hope they'll buy."

Home staging pros agree that an objective eye is a must. "Whether your Realtor, stager or neighbor comes by to offer it, take their advice," Otto says.

Read on to discover Home Staging Do's and Don'ts! :)

We asked three expert stagers--Otto; online home stager Kelly Fallis; and Colorado home stager Jamie DeBartolomeis--for their top home staging do's and don'ts. Here's their advice:

Home Staging "Dos"

1. Clean, clean, clean!

2. Focus on curb appeal. Clear the outside of the house, especially the front yard and front entrance.

3. Get rid of garbage bins in the front. "Most people focus on the inside of the house but that's totally wrong," says Fallis. "You have to absolutely pay attention to the entrance of the house."

4. Whatever you think de-cluttering is, de-clutter times two.

5. Start your packing early. Take out everything that's going to the new house and move it off site into a storage space. "People are not signing up to live with you, so get rid of your stuff," says Fallis.

6. Do emotionally detach. Look as your home as a product on the market for sale.

7. Depersonalize. Remove family photos and heirlooms.

8. Remove unnecessary furniture and belongings.

9. Remove magnets and other mementos from the refrigerator.

10. Get pets out of the house when it's being shown.

Home Staging "Don'ts"

1. Don't do nothing!

2. Don't assume potential buyers will be able to look past your clutter and sloppiness.

3. Don't make people walk around obstacles like front walks littered with bikes and scooters.

4. Don't display your beer bottle or hat collections; box them up.

5. Don't display toiletries and hygiene items in the bathroom.

6. Don't bake cookies or set the table. "They're not going for cookies, they're not going for dinner," says Fallis. "It's distracting."

7. Don't burn candles. If you have odors in the house, get the vents and carpets cleaned. The house should have the smell of fresh flowers, and that's it.

8. Don't neglect the outside of the house, even in the winter. Shovel the walks and driveway. Trim overgrown bushes and low-hanging tree limbs.

9. Don't get upset about having to stage your home to get it ready for sale. "It's a price war and a beauty pageant out there, as one of my favorite Realtors likes to say," says Otto. "Win the contest against your competition!"

10. Don't forget the small stuff. Make sure to do all the little things like touching up chipped baseboards, repairing damaged walls, replacing outdated faucets and removing carpet stains.

Want more home staging tips and techniques? These AOL Real Estate guides can help:

FHA 203k loan can be used to renovate a home which is already owned!

2011-04-22T17:55:00.001-06:00

The FHA 203k renovation loan allows an existing homeowner to finance up to $35,000 in improvements into their new FHA 203k loan which avoids the need to carry a higher interest rate 2nd mortgage, having two payments, and be subject to future rate increases of a Home Equity Line of Credit.

FHA to the rescue! Call me for more details and to answer your questions!

Marty Qualls, your FHA 203k Expert!

Click here for 203k existing homeowner question and answer

Emilee Lake says "Your team is AWESOME!!"

2011-04-21T17:48:00.000-06:00

Hey Marty,

Thank you and your team for all your hard work on getting my loan!! Buying your own home is such a huge step in life and I'm sooo happy to finally make it!! You guys made the process so quick and easy, I couldn't believe it. I was expecting months and months of a loan process and you guys got it done in about 2 weeks. Your team is AWESOME!!

Thanks again,

Emilee Lake

April 19, 2011 Closing

Recipe's-Asking what Olive Oil can do for you?

2011-04-21T12:29:00.001-06:00

Olive oil can be a complicated subject. Like wine, it is produced in many different countries, each lending their own indigenous characteristics to the oil. Also like wine, many olive oils are intended for specific uses, even specific foods.

That being said, my plan is to proceed logically and judiciously. Instead of looking at the subject as a whole, I'll focus on the olive oils from a country that produces some of the world's finest: Italy.

Click here for the complete article and wonderful recipe's which utilize Olive Oil's magic touch to make food taste great:
Olive Oil The Culinary World's Most Important Commodity

For more great recipe's each month, delivered to your favorite e-mail, click here to sign up for YOU Magazine: Yes, I want great Recipe's every month!

Hope for Underwater Homeowners: Big Bank Servicing Companies are finally catching on!

2011-04-19T06:03:00.000-06:00

Until recently, it took a rare combination of extreme bad luck and poor judgment for a homeowner to end up under water on his mortgage – that is, owing more than the house is worth. Today, nearly one out of four homeowners is facing exactly that situation. In response, banks and the government are rolling out new programs they say will help – that is, for homeowners who qualify.

After banks' initial resistance to loan modification programs and refinancing designed to help struggling borrowers, many are now embracing programs for homeowners in trouble. Both GMAC Mortgage and Wells Fargo have started either reducing some mortgage balances, deferring payments or offering subsidized refinancing. Chase says it will open another 30 dedicated "help centers" this year where homeowners can apply for loan modifications. This month, the government also stepped in, extending the period for underwater borrowers to refinance their mortgages at lower rates, which was not possible through standard refinance programs. "All of a sudden, everyone is aware of this growing problem," says Stu Feldstein, president at SMR Research, which tracks the mortgage market.

About a year ago, it seemed the number of underwater homeowners was declining as home prices were rising. But housing analysts say that trend is now reversing. Approximately 23% of homeowners with a mortgage are underwater -- near an all-time high -- according to fourth quarter 2010 data from CoreLogic, a mortgage-data firm. That figure rose for the first time in a year, and it's up from 22.5% in the previous quarter. Meanwhile, another 2.4 million homeowners are teetering on the brink, with less than 5% equity in their home. If home prices drop another 10% -- which is likely over the next year – many of those owners could end up with negative equity, says Cameron Findlay, chief economist at LendingTree.com.

While this has been an obvious problem since 2008, "large banks have been extraordinarily slow to move to adopt these programs," says Paul Leonard, a director at the Center for Responsible Lending. But now lenders are increasingly stepping in, eager to avoid foreclosures, which can cost the bank far more than a reduced payment plan or loan modification ever would. Lenders are also hoping to keep discouraged homeowners from intentionally walking away from their home: Half of homeowners who owe 50% or more on their home than it's worth and who default do so strictly because of negative equity, according to a 2010 Federal Reserve Board study.

But the banks' programs aren't designed simply for people disappointed by falling prices. To qualify, in most cases, borrowers have to prove they're having trouble making their payments and for a good reason. They'll often have to provide documentation for a job loss, a pay cut, large medical expenses or other unanticipated losses. If approved, they could be offered a lower interest rate – by up to 2%lower when a bank is participating in the government's Home Affordable Modification Program. Or they may also receive a longer repayment period – extending a mortgage up to 40 years from the date of origination -- which makes monthly payments smaller, says Leonard.

With some lenders, borrowers who are past due and whose home values have suffered large losses (and appear unlikely to recover in the near term) could qualify for a principal deferment, where a chunk of the mortgage is set aside to be paid later, or out-and-out forgiveness of part of the loan. In general, borrowers will have to meet some income limitations. Modifications typically occur when a borrower's monthly mortgage payment is more than 31% of their monthly household pre-tax income and when the principal balance is no more than $729,750 on a single-family home. The amount forgiven is often small in the grand scheme of things, and it varies depending on the lender and the borrower's circumstances. Wells Fargo, for example, says it eliminated $51,000 in principal, on average, for more than 73,000 borrowers from 2009 through 2010.

Some government programs offer help, through refinancing, to underwater borrowers who are capable of making payments. But applicants will need to meet a long list of qualifications. For underwater borrowers, these programs are among the very few options available for them to refinance. Homeowners who owe up 125% of their home's current market value should contact their lender or mortgage servicer to find out if they're participating in the government's Home Affordable Refinance Program (HARP), which was just extended through June 2012. Borrowers must have a mortgage that's guaranteed by Fannie Mae or Freddie Mac -- to find out, contact these agencies or your mortgage company -- be current on their payments, and not be more than a month late making a payment over the past year.

There's also an option for borrowers who are even further underwater where participating lenders must agree to write off at least 10% of their unpaid principal balance on their primary mortgage. Since September, the government's Federal Housing Administration has been offering some underwater borrowers in areas with large declines in home values -- like Miami and Las Vegas -- a chance to refinance. But that's assuming that their lender agrees to write off a portion of the unpaid principal and that the borrower doesn't have an FHA mortgage but can now qualify for one. So far, just 24 lenders are participating, and only 99 loans have been approved, according to an FHA spokesman. A GMAC spokeswoman says the company will open up this program to some of its borrowers in the next few weeks.

In spite of the recent flurry of activity, consumer advocates say homeowners shouldn't expect much – at least not yet. As it is, some government programs have already fallen short of expectations. HAMP, for example, has helped around 600,000 people permanently modify their mortgages since 2009 -- so far, a far cry from the up to four million it was projected to help. And banks have been slow to act as well, especially when it comes to borrowers who are currently making payments. Among lenders "there is some concern that by offering [principal reduction] qualified borrowers will storm the gate and demand a reduction," Leonard says. So far, that hasn't been the case. From 2009 through 2010, Chase says it helped around 500,000 borrowers avoid foreclosure. During that period, about two million foreclosures occurred, according to RealtyTrac.com. And critics say even the loan modifications that have been in place haven't helped that much: Many of those borrowers fell behind on payments again afterwards.

Of course, there are other options for desperate homeowners. They can try a short sale, assuming the bank allows them to sell the home for less than what's owed on the mortgage. More lenders are now open to this, says Stuart Gabriel, director at UCLA's Ziman Center for Real Estate, because they're likely to lose less money in a short sale than they would in a foreclosure. Or, if they can make the payments, they can decide to ride it out. Contrary to popular belief, homeowners who have seen their homes lose 25% or more in value but can afford to keep paying the mortgage might be better off staying there and waiting for prices to stabilize, says Findlay. But if a borrower is able to refinance into a lower rate through a government program, that might be the better move, he says.

Call me to review refinance or purchase options.

Mortgages with Marty Qualls in Utah

801-540-5108

Seth and Andrea's Testimonial: We appreciate that you were always available

2011-04-17T17:54:00.002-06:00

Thank you for all of your help! We appreciate that you were always available to answer questions. Even when we emailed you in the middle of the night you were quick to respond! You made our first home buying experience painless!

Thank you so much!

Andrea & Seth Gabbitas

Jake Rackham's Testimonial: Marty's ambitious and caring

2011-04-14T22:34:00.002-06:00

“Marty's ambitious and caring. His experience shows because of the excellent way he took care of my Mortgage needs. I'm very satisfied with my loan, he got me a great rate!

I would refer Marty to my friends and family without hesitation. Call Marty when you have Mortgage questions, he’s awesome at getting the job done!”

Jake Rackham

10 Mistakes Smart Buyer's and Seller's Make and how to Avoid Them

2011-04-14T09:34:00.002-06:00

Buyers

Mistakes	Prevented By
1. Not knowing how much they can afford to pay for a house before they make an offer.	Obtaining pre-approval for a mortgage from a Lender, so you know in advance exactly how much you can afford.
2. Not finding out in advance whom the real estate agent represents.	Asking your Realtor. Most people think their agent is working for them. But unless the agent is working as your buyer representative, he/she represents the seller.
3. Not realizing that the wrong mortgage can cost thousands of dollars in unnecessary interest and taxes.	Consulting with a mortgage consultant, accountant, and/or financial planner before making a final decision on which mortgage to choose. CPAs can tell you the long-term effects on your income.
4. Not discovering hidden defects before buying a home.	Hiring a professional to conduct a pre-purchase home inspection.
5. Not knowing how debt can affect their ability to buy or refinance a home.	Asking your mortgage professional to help you review and repair your credit file in advance.

Sellers

Mistakes	Prevented By
6. Setting their asking price too high because of personal need or emotion rather than fair market value.	Consulting with a professional real estate agent. He/she can assist you in pricing your home correctly.
7. Failing to 'showcase' their home by highlighting the best features.	Thoroughly cleaning, repairing, and readying your home for showing before you put it on the market.
8. Signing a listing contract with no way out.	Asking your real estate agent if you can cancel your listing agreement at any time, no questions asked, prior to signing the contract or agreement.
9. Choosing an agent for the wrong reasons. (For example, listing a home with the agent who works for the most popular company.)	Selecting a listing agent with the best marketing plan and track record.
10. Not knowing their legal rights and obligations.	Consulting a knowledgeable, trustworthy professional who understands the technical and legal aspects of a real estate transaction. Contracts are legally binding. Neglected details can wind up costing sellers thousands of dollars.

I would like to Thank Connie and Terry Dorsey for this excellent article~

Connie & Terry Dorsey
The Franklin Group Real Estate
69 E 200 N
Kaysville UT 84037

Terry:
801-809-1890
Terry@DorseyUtahHomes.com

Connie:
801-755-5535
Connie@DorseyUtahHomes.com

How a cancelled credit card effects your credit score

2011-04-12T04:55:00.000-06:00

QUESTION: I've had an American Express charge card since 1999, which costs $95 a year to maintain. If I cancel it, what will this do to my credit score?
--Fred Cohen, Weston, Fla.

Ditching annual fees is often a smart play, although in this case $95 might not be much for what amounts to an open line of credit with no preset spending limit. Since you're closing a charge card (which doesn't let you run a balance) instead of a credit card (which does), your credit score probably won't take a hit, at least for now.

Credit-scoring firm FICO currently figures scores—the calculation most creditors use—without including charge cards in the all-important "credit-utilization ratio," which divides the total of all your credit limits by your total balances. (The lower the ratio, the better.)

Still, there's a longer-term risk to cutting up the card, says John Ulzheimer, president of consumer education at SmartCredit.com: Ten years after you cancel, the card's history will be wiped from your credit report, potentially shortening your credit history and lowering your score.

IRS Audit Red Flags: 12 hot spots to raise scrutiny from the IRS

2011-04-11T11:34:00.003-06:00

#1 and #12. Yep, I raised IRS scrutiny on my 2003 taxes because of mistake #1 (I didn't receive an interest statement in the mail for $146 of interest income on one of my old employer managed 401k's) and #12 (I took higher than normal deductions for charitable contributions which resulted in me needing to get cancelled checks to PROVE that I really gave the donations-which I did, by the way). :)

My advice is to take your time and gather ALL your information together before you get ready to prepare your taxes, whether you do it yourself or have a professional do it for you. THEN, since you have done such a great job of gathering, do a great job of storing your information, just in case you get a mail audit (more common every year) or a full blown audit (there's where a professionally prepared tax return pays dividends!).

Here is a list of 12 IRS Audit Red Flags to help keep you out of hot water: The IRS Dirty Dozen

More great articles like the IRS Dirty Dozen can be delivered to you each month by signing up for YOU Magazine. Click to sign up for YOU Magazine

Are Tax Credits Still Available for First Time Home Buyer's in 2011?

2011-04-11T10:27:00.000-06:00

Income Tax credits are only available to qualifying military personnel. Here is a link to the Home Buyer Tax Credit Review article.

Because of the many different tax credits, times covered by the offering, and what tax credits needed to be repaid and which ones didn't, here is a quick review:

Summary of the First-Time Homebuyer Credit by Year

For 2008: up to $7,500, the credit is paid back over 15 years. For Jan - Nov 2009: up to $8,000, the credit does not need to be paid back.
For Dec 2009 - April 2010: up to $8,000 for first-time buyers, the credit does not need to be paid back.
For Nov 7, 2009 - April 2010: up to $6,500 for "long-term residents" buying a new home, the credit does not need to be paid back.
Until April 30, 2011: homebuyer credit continues to be available for qualified members of the U.S. uniformed services.

The Real Deal: End of a mortgage era

2011-04-05T08:06:00.001-06:00

End of a mortgage era

Fixed 30-year mortgage rates in the 5 percent range? Minimum down payments below 5 percent? Jumbo-size home loans for high-cost markets at regular interest rates? Kiss them good-bye -- possibly sooner than you might guess.

Take a snapshot of today's mortgage market conditions and frame it. It's highly likely you'll never see anything like these favorable combinations of rates and terms again. That's the inescapable conclusion emerging from the Obama administration's "white paper" on optional remedies for the two ailing giants of housing finance -- Fannie Mae and Freddie Mac -- along with events already under way in the national economy.

The administration's long-delayed housing report, released Feb. 11, drew a mix of catcalls and mild applause. Apartment developers praised the report's emphasis on expanding opportunities for people to rent their housing, as opposed to the idea that homeownership is something for everybody.

Big banks and their allies in Congress welcomed the prospect that Fannie Mae and Freddie Mac -- who together account for about 60 percent of the mortgage market but have cost taxpayers a net $150 billion in bailout money in the past three years -- will be heading into oblivion. Consumer and real estate industry groups lamented the phase-out of Fannie and Freddie, both of whom -- despite their recent crashes -- supplied steady streams of mortgage money for decades.

The report offered not only options for Congress to consider in winding down the two companies, but also recommendations on more immediate "transition" measures to achieve a smaller federal footprint in the mortgage market. Some of these transitional steps require no congressional approval, and therefore are likely to impact borrowers and home-buyers in the months immediately ahead. Factor these changes into the timing for any loan application or purchase being contemplated this year:

• Higher insurance fees on FHA mortgages -- another quarter of a percentage point on annual premiums. That's vitally important to consumers with moderate incomes and assets, especially in the African-American and Hispanic communities, where FHA loans are the dominant route to homeownership. The report also hints at a possible increase in minimum down payments for FHA -- currently just 3.5 percent -- but provides no specifics. Congressional approval would be required for any change.

• Significant reductions in maximum loan amounts later this year for both FHA and conventional loans eligible for purchase by Fannie or Freddie, unless Congress votes to retain the current statutory $729,750 limit for high-cost areas before its expiration on Oct. 1. Loans above each local market's limit -- whatever the reduced ceiling turns out to be -- will be considered jumbos, and come with higher interest rates from private lenders.

• Raising the fees Fannie Mae and Freddie Mac charge lenders to guarantee pools of their mortgages for resale to bond investors. Lenders will automatically pass those on to borrowers as a cost of doing business. The report also calls for raising down-payment requirements at Fannie Mae and Freddie Mac to 10 percent.

• Retaining the controversial and costly add-on fees now charged by Fannie Mae and Freddie Mac that can increase the expense of obtaining even a moderate-size mortgage by thousands of dollars. These add-ons now extend to applicants with FICO credit scores of 800 and above who are making substantial down payments. The white paper actually applauded the imposition of these fees, calling them one of several "first steps" on the path to weaning consumers off reliance on Fannie and Freddie for mortgage money.

The administration not only wants to wind down the two companies over the coming several years, but also wants to severely reduce the size of FHA's role -- cutting its market share from around 30 percent today to as low as 10 percent. Where will the buyers who depend upon FHA today for affordable financing turn when that sharp cut has been accomplished? That's not clear.

The white paper makes an oblique reference to a major issue bubbling on the back burner that could also push rates up: Regulators are debating what should and shouldn't be a "qualified residential mortgage" under the terms of last year's financial reform legislation. Loans that are not "qualified" -- in terms of down-payment size and other criteria --will require extra investments by lenders when they pool them into bonds; that, in turn, could raise rates for nonqualified mortgages by as much as two to three percentage points.

Among the proposals: Make 20 percent to 30 percent down payments the minimum to meet the "qualified" test. The worst-case scenario: If a buyer only has money for a small down payment, they'll be charged significantly higher rates.

Bottom line: Buyers should get ready to pay more for mortgages, no matter what ultimately happens to Fannie and Freddie.

Property Devastation: Don't Let It Mean Financial Devastation

2011-03-31T22:56:00.002-06:00

One of the most important questions I should probably get from my clients at loan application would be, "How much homeowners insurance should I get on my home?". I don't get this question. As I read the article in my YOU Magazine this month, I wondered why.

It's more than likely that there are other more pressing questions on my clients minds; interest rate, closing costs, what are closing costs, what amount do I need at closing, but how much insurance coverage is not even on their radar.

This article is an excellent discussion of WHY it should be at the top of mind when getting your mortgage loan in order. It's also a great discussion to spur on analysis of how well or how poorly insured we are on other important things: life, auto, disability, health, retirement home, etc.

Enjoy this great article and click here if you would like to receive YOU Magazine for yourself each month:

Click here to sign up for YOU Magazine

Last month, the world watched in horror as another tsunami brought immense devastation, this time to Japan. In light of the tragic earthquake and subsequent tsunami, the editors of YOU Magazine wanted to discuss a topic that's important to all homeowners: homeowners insurance.

Let's start with some important questions:

Do you know what a typical homeowner's insurance policy covers?
If you're currently a homeowner, do you know what your policy does, or more importantly, does not cover?

A study released by the National Association of Insurance Commissioners pointed out that typical property and liability policies do not cover home damage from floods, earthquakes, water line breaks, termites, mold, and several other perils, large and small.

Hurricane Katrina taught us hard lessons about home insurance. One unbelievable story was the loss of home equity experienced by Senator Trent Lott. The Senator's long time insurance company did not cover his home after it was completely destroyed by Katrina.

The reason?

With hurricane insurance you typically have coverage from high winds, but not water damage. The water surge brought onshore by Katrina is what destroyed his home.

Homeowners need to be properly protected. Plan for the worst, hope for the best is prudent advice here. Mortgages and home equity are a big part of every homeowner's financial plan and proactive planning is essential!

If you want to discuss your personal situation, contact the professional who supplied you with this month's issue of YOU Magazine. Don't wait until after a tragedy happens to learn exactly what type of coverage you have. Then, it may be too late to protect yourself, your home, and your financial future.

10 Common Errors Home Owners Make When Filing Taxes

2011-03-31T09:49:00.006-06:00

By: G. M. Filisko
Published: January 25, 2011
Don’t rouse the IRS or pay more taxes than necessary—know the score on each home tax deduction and credit. Here's 10 "sin's" that will rouse the IRS...

Sin #1: Deducting the wrong year for property taxes
You take a tax deduction for property taxes in the year you (or the holder of your escrow account) actually paid them. Some taxing authorities work a year behind—that is, you’re not billed for 2010 property taxes until 2011. But that’s irrelevant to the feds.
Enter on your federal forms whatever amount you actually paid in 2010, no matter what the date is on your tax bill. Dave Hampton, CPA, tax manager at the Cincinnati accounting firm of Burke & Schindler, has seen home owners confuse payments for different years and claim the incorrect amount.

Sin #2: Confusing escrow amount for actual taxes paid
If your lender escrows funds to pay your property taxes, don’t just deduct the amount escrowed, says Bob Meighan, CPA and vice president at TurboTax in San Diego. The regular amount you pay into your escrow account each month to cover property taxes is probably a little more or a little less than your property tax bill. Your lender will adjust the amount every year or so to realign the two.

For example, your tax bill might be $1,200, but your lender may have collected $1,100 or $1,300 in escrow over the year. Deduct only $1,200. Your lender will send you an official statement listing the actual taxes paid. Use that. Don’t just add up 12 months of escrow property tax payments.

Sin #3: Deducting points paid to refinance
Deduct points you paid your lender to secure your mortgage in full for the year you bought your home. However, when you refinance, says Meighan, you must deduct points over the life of your new loan. If you paid $2,000 in points to refinance into a 15-year mortgage, your tax deduction is $133 per year.

Sin #4: Failing to deduct private mortgage insurance
Lenders require home buyers with a downpayment of less than 20% to purchase private mortgage insurance (PMI). Avoid the common mistake of forgetting to deduct your PMI payments. However, note the deduction begins to phase out once your adjusted gross income reaches $100,000 and disappears entirely when your AGI surpasses $109,000.

Sin #5: Misjudging the home office tax deduction
This deduction may not be as good as it seems. It often doesn’t amount to much of a deduction, has to be recaptured if you turn a profit when you sell your home, and can pique the IRS’s interest in your return. Hampton’s advice: Claim it only if it’s worth those drawbacks.

Sin #6: Missing the first-time home buyer tax credit
If you met the midyear 2010 deadlines, don’t forget to take this tax credit into account when filing.

Even if you missed the 2010 deadlines, you still might be in luck: Congress extended the first-time home buyer credit for military families and other government workers on assignment outside the United States. If you meet the criteria, you have until June 30, 2011, to close on your first home and qualify for the tax credit of up to $8,000.

Sin #7: Failing to track home-related expenses
If the IRS comes a-knockin’, don’t be scrambling to compile your records. Many people forget to track home office and home maintenance and repair expenses, says Meighan. File away documents as you go. For example, save each manufacturer's certification statement for energy tax credits, insurance company statements for PMI, and lender or government statements to confirm property taxes paid.

Sin #8: Forgetting to keep track of capital gains
If you sold your main home last year, don’t forget to pay capital gains taxes on any profit. However, you can exclude $250,000 (or $500,000 if you’re a married couple) of any profits from taxes. So if you bought a home for $100,000 and sold it for $400,000, your capital gains are $300,000. If you’re single, you owe taxes on $50,000 of gains. However, there are minimum time limits for holding property to take advantage of the exclusions, and other details. Consult IRS Publication 523.

Sin #9: Filing incorrectly for energy tax credits
If you made any eligible improvement, fill out Form 5695. Part I, which covers the 30%/$1,500 credit for such items as insulation and windows, is fairly straightforward. But Part II, which covers the 30%/no-limit items such as geothermal heat pumps, can be incredibly complex and involves crosschecking with half a dozen other IRS forms. Read the instructions carefully.

Sin #10: Claiming too much for the mortgage interest tax deduction
You can deduct mortgage interest only up to $1 million of mortgage debt, says Meighan. If you have $1.2 million in mortgage debt, for example, deduct only the mortgage interest attributable to the first $1 million.

This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.

G.M. Filisko is an attorney and award-winning writer who was once mortified to receive a letter from the IRS—but relieved to learn the IRS had simply found a math error in her favor. A frequent contributor to many national publications including AARP.org, Bankrate.com, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

Thank you to Diana Holbrook McKee for sharing this article with me! It was definitely "Blog worthy", and I share it here for others to learn from... :)

Diana Holbrook McKee

Holbrook Realty

Serving South Davis County Since 1954

801-390-3982

www.DianaHolbrookMcKee.com

FHA Loans vs. Conventional Loans: Which is better?

2011-03-29T05:53:00.001-06:00

Conventional loans increasingly slipping away

If you want to know the difference between conventional mortgages and Federal Housing Administration (FHA) financing, the first item up for discussion is typically the cost of each loan.
For instance, the Wall Street Journal tells us that “conforming mortgages, or those that can be bought by Fannie Mae or Freddie Mac, commonly require higher down payments than FHA loans require. The catch to an FHA-insured loan is that you’ll pay more in fees.”

Later the Journal explains that “borrowers don’t face those costs on a conforming mortgage with 20% down.”
Well, sure, but how realistic is this comparison for most borrowers?

Apples & apples
Let’s begin with the assumption that you’re a rational borrower seeking the lowest mortgage rates. This means that while these rates are important, so too are the availability of cash and the cost of mortgage insurance — if any.
You can borrow from the FHA with as little as 3.5 percent down, but if you do, you’ll need insurance — 1 percent of the loan amount up front plus an annual mortgage insurance premium (MIP) equal to 1.15 percent of the outstanding loan balance (beginning April 17th, 2010).
Alternatively, if you borrow with 20 percent down and get a conventional loan, there’s no mortgage insurance requirement.
So, for purposes of illustration and easy math, let’s say you can borrow $300,000 at 5 percent. The monthly cost for principal and interest over 30 years will be $1610.46.
If you borrow $300,000 from the FHA, you will have the 1 percent up-front charge ($3,000) plus an annual MIP equal to roughly $3,450 — a total of about $6,450 in the first year.
Get that conventional $300,000 loan with 20 percent down and you pay nothing for mortgage insurance.
So, obviously, the conventional loan is the “better” deal. Or is it?
20 percent down
Although the loan amounts are the same the two deals are radically different. A $300,000 FHA loan equaled the purchase price of the property less 3.5 percent down. The actual cost of the home was $310,881. With a conventional loan, the $300,000 in financing equaled 80 percent of the purchase price, or $375,000.
To make the conventional loan work in our example, you first need $75,000 in cash plus closing costs. This requirement means conventional loans without mortgage insurance (you put 20 percent down) are off limits to most borrowers. Here’s why:
The National Association of Realtors reported in its 2010 survey of buyers and sellers that 75 percent of all homes are bought with less than 20 percent down. The average median home price at the end of 2010 was $170,600. Translation: Most buyers did not have the $34,120 in cash it would take to get a conventional loan without mortgage insurance.
The right comparison
But why not a comparison between conventional and FHA loans that really works?
Compare a conventional mortgage with 5 percent down and an FHA mortgage with 5 percent down. The conventional loan will require private mortgage insurance and the FHA loan will require insurance as well.
Which is better? It depends on the prices and terms at the time the loans are being originated — this is a good reason to speak with me and compare both up-front and monthly costs.
Also, be precise when using that term “better.” FHA loans are insured by the federal government and if you get into financial trouble the FHA will try to work out a settlement of your loan rather than a foreclosure. In fact, HUD boasts that 73% of its delinquent loans were cured and not foreclosed in fiscal 2010, a comforting thought in today’s financial world.
But while FHA loans may be “better” in some cases they’re not always preferred. Conventional loans work just fine for many borrowers. They are, after all, conventional mortgages — meaning there are no gotcha clauses or hidden costs. As always, shop around and defend your interests.

Ten Secrets to Savings: Write down your goals

2011-03-24T09:33:00.002-06:00

Cheap is chic, frugality is in fashion, and Americans have sworn off their spending addiction. In a replay of 2010, their top resolution for 2011 is to save more money, according to the American Express Spending & Saving Tracker. But a funny thing happened on the way to the bank: Americans fell off the wagon. This year, consumers aim to save an average of $2,600, a far cry from their average goal of $14,000 in 2010. The reason: many of them didn't meet their ambitious savings target.

That doesn't surprise me. I've always believed that the trick to saving money is just that – a trick. You don't have to strike it rich on Wall Street, win the lottery or even earn a six-figure salary to build a comfortable savings cushion. You just have to play mental tricks on yourself to stay focused on spending less and keeping more cash.
Tops on my list is to have your boss (or your bank) take money off the top of your salary for retirement or some other goal. Even better than paying yourself first is having someone else do it for you. You don't have to think about it, and the money won't burn a hole in your pocket.

Coming in a close second is to start now. Don't wait till you make more money. The more you make, the more you spend.

Start small. Use our How much will my savings be worth? calculator to see how even $100 per paycheck will add up over time.

Write down your goals, which makes them more real. Be specific. "Saving for the future" is admirable but vague. Pledging to save $2,000 for a vacation to Cancun is likely to get you there.

Set up an account for each goal – education, vacation, car, computer – or for large, recurring expenses, such as insurance premiums.

Deposit your paycheck into your savings account and transfer money as you need it (don't exceed the number of transfers you are permitted per month). My college-student son thought of this one on his own, and he told me it was "painful" to have to withdraw money from savings.

Subtract your credit purchases from checking right away so that you're not surprised when you get the bill. My husband does this religiously; he learned this trick from his brother.

Toss spare change into a glass jar on your desk or dresser and watch your money grow. I once ran into a fellow who told me that he makes a habit of squirreling away spare change and found money (like the quarter he picked up while we were standing in line at Quiznos). His stash adds up to about $1,000 per year.

Give yourself an instant reward. Each time you brown-bag your lunch instead of eating out, toss the savings into your cash jar.

After you pay off a loan or a bill, keep writing the check and send it to a savings or investment account.

Five Mortgage and Foreclosure Myths

2011-03-22T07:32:00.000-06:00

Because of the rapidly changing rules in the mortgage world, call me for up to the minute lending guideline changes.

Marty

In a mortgage market that changes as quickly as this one, today’s fact is tomorrow’s fiction. For buyers, misinformation can be the difference between qualifying for a home loan or not.

Sellers and owners, knowledge is foreclosure-preventing, smart decision-making power! Without further ado, let’s correct some common mortgage misconceptions.

1. Myth: Buyers with bad credit can’t qualify for home loans. Obviously, mortgage guidelines have tightened up, big time, since the housing bubble burst, and they seem likely to tighten even further over the long-term. But just this moment, they have relaxed a bit. In the last couple of weeks, two of the nation’s largest lenders of FHA loans announced that they’ve dropped the minimum FICO score guideline from 620 (which allows for some credit imperfections) to 580, which is actually a fairly low score.

At a FICO score of 620, buyers can qualify for FHA loans at many lenders with only 3.5 percent down. With a score of 580, the lenders are looking for more like 5 to 10 percent down – they want to see you put more of your own skin in the game, and the higher down payment lowers the risk that you’ll default. However, if your credit has taken a recessionary hit, like that of so many Americans, this might create a glimmer of hope that you’ll be able to take advantage of low prices and interest rates without needing years of credit repair.

2. Myth: The Mortgage Interest Deduction isn’t long for this world. Homeowners saved over $85 billion in 2008 by deducting their mortgage interest on their income tax returns. A few months ago, the National Commission on Fiscal Responsibility and Reform caused a massive wave of fear to ripple throughout the world of real estate consumers and professionals when they recommended Mortgage Interest Deduction (MID) reform, which would dramatically reduce the size of the deduction.

Fact is, the Commission made a sweeping set of deficit-busting recommendations to Congress, a few of which are likely to be adopted. Fortunately for buyers and sellers, MID reform is not one of them. Very powerful industry groups and economists have been working with Congress to plead the case that MID reform any time in the near future would only handicap the housing recovery. Congress-folk aren’t interested in stopping the stabilization of the real estate market. As such, the MID is nearly universally thought of as safe – even by those who disagree that it should be.

3. Myth: It’s just a matter of time before loan guidelines loosen up. The US Treasury Department recently recommended the elimination of mortgage industry giants Fannie Mae and Freddie Mac. I won’t get into the eye-glazing details of it here, but the long and the short is that (a) this is highly likely to happen, and (b) it will make mortgage loans much harder and costlier to get, for both buyers and homeowners. It’s possible that loans are as easy to get as they’re going to get. So don’t expect that if you hold out, zero-down mortgages will come back into vogue anytime soon. Fortunately, Fannie and Freddie aren't likely to disappear for another 5-7 years, so you have a little time to pull your down payment and credit together. If you want to get into the market, the time to get yourself ready is now!

4. Myth: If you don’t have equity, you can’t refi. Much ado is being made about how stuck so many people are in their bad loans, because they don’t have the equity to refinance their way out of them. If you’re severely upside down (meaning you own much, much more than your home is worth), stuck may be the situation. But there are actually a couple of ways homeowners can refi their underwater home loans. If your loan is held by Fannie or Freddie (which you can find out, here), they will actually refinance it up to 125% of its current value, assuming you otherwise qualify for the loan. That means, if your home is worth $100,000, you could refinance a loan up to $125,000, despite the fact that your home can’t secure the full amount of the loan.

If your loan is not owned by Fannie or Freddie, you might be a candidate for the FHA “Short Refi” program. While most mortgage workout plans are only available to people who are behind on their loans, the Short Refi program is only available to homeowners who are current on their mortgages and need to refinance up to 115 percent of their homes’ value. So, if you owe $250,000 on your home, you can refinance via an FHA Short Refi even if your home’s value is as low as $217,000. If you think you’re a good candidate for a short refi, contact your mortgage broker, stat – there are some in Congress who think that this program is so underutilized (only 245 applications have been submitted since it rolled out in September – no typo!) that its funding should be diverted to other needy programs.

5. Myth: If you’ve lost your job and can’t make your mortgage payment, you might as well mail your keys in. Until recently, this was essentially true – virtually every loan modification and refinancing opportunity required that your economic hardship be over before you could qualify. And documenting income has always been high on the requirements checklist. But there are some new funds available in the states with the hardest hit housing and job markets, which have been designated specifically for out-of-work homeowners.

Home Loan Rates And What Affects Them

2011-03-18T09:21:00.002-06:00

It's a Small World After All
Globalization's Impact on Home Loan Rates

Today we live in a global economy, an interconnected world where goods and capital move freely at lightning speed across countries. The widely accepted view is that globalization not only benefits all countries across the world but lends itself towards the betterment of the economy as a whole.
As we have seen, globalization can also have a negative impact with a domino effect in times of turmoil and unrest. This impact affects the financial markets both in the U.S. and abroad.
Flight to Safety
When there is political unrest, which was sparked recently in Egypt and has spread like wildfire throughout the Middle East, global investors get nervous. Often they shed their risky assets like Stocks and flee to the safe haven of the U.S. Dollar and U.S. Bond market.

This geopolitical unrest can create a buying binge, which helps Bond prices improve. And when Bond prices improve, so do home loan rates. However, there are growing concerns that trump the disturbing news coming from the Middle East, which will be the guiding force of home loan rates in the times ahead. What might that be?
Inflation, Inflation, Inflation
Inflation is the arch enemy of Bonds and home loan rates, even if inflation is across the pond. The increase in global unrest, not just in Egypt but in other parts of the world as well, is mostly attributed to economic factors – primarily runaway inflation in commodities and food.
The People's Bank of China has raised interest rates a couple of times, most recently by 0.25% in an effort to head off a continued rise in consumer prices in China. The culprits? Soaring food prices and higher raw material costs lead the pack.
China has also tightened lending standards by requiring banks to raise their capital reserve requirements. In their latest reporting, China's inflation rose by 4.9% year over year. This was lower than their expectations, however it still marked their highest reading in a couple of years. China may have to tighten their belt some more.
Brazil is appearing on the scene with the hottest rates of inflation in six years. They are attributing this to a rise in food costs and increased bus fares. It is anticipated the Central Bank will raise the benchmark interest rate in March for a second straight time in an effort to contain the spike in inflation.
The British are grappling with inflation as well. Their year over year reading struck a hot 4%, which is twice the rate of the Central Bank's target. The UK has yet to address this with rate hikes because their economy is in such bad shape that any hike would make matters worse.
Inflation is beginning to become a problem in Europe where it has risen to 2.4%. This is super hot and well above the European Central Bank's (ECB) comfort zone of beneath 2%.
With an inflation problem in Europe, the ECB will eventually have to raise rates to fight it. When they do, the Euro will strengthen against the dollar, making European Bonds relatively more attractive than U.S. Bonds. This attraction will likely put a damper on U.S. Bond purchases, and could also cause home loan rates to rise.
Many of these countries within Europe have a high number of union workers. They could very well demand pay increases to offset the higher cost of living resulting from inflation. This would exacerbate matters.
As we see signs of inflation around the world, the U.S. isn't immune. With the second round of Quantitative Easing, known as QE2, the Federal Reserve's stated goal is to boost Stock prices, create inflation, and lower the unemployment rate. These are all unfriendly to Bonds and could also cause home loan rates to move higher. As the old trading saying goes, "Don't Fight the Fed." It's a bit like the Golden Rule, "He with the gold, rules." If the Fed wants to accomplish these goals at the expense of Bonds, they probably will.
Some Good News
Despite inflation rising around the world, the global economy will continue to recover and growth will continue to expand. Consumer confidence has picked up, hitting the highest level since February 2008. With continued confidence as the economy picks up speed, housing may begin to show signs of improvement as well.

These are very interesting times. Historically speaking, rates are still extremely attractive and remain close to the historic lows…but for how long? Overall, as a percentage of total income, the cost of owning a home is less expensive that it's been at any time since 1963. So if you or someone you know has been thinking about purchasing or refinancing a home, now is the time to get started!

Contact me and we can spend some time reviewing your situation today.

Leprechauns give us a personal finance lesson!

2011-03-16T08:03:00.001-06:00

Personal Finance Lessons From Leprechauns

Leprechauns are those small mystical creatures always stylishly attired in green garb and thinking of ways to hide their pot of gold. Or that is the impression I have gotten from Hollywood interpretations and my limited understanding of Irish lore. Apparently, leprechauns can also teach us a lot about personal finance and saving money.

Based on one popularly-quoted leprechaun resource compiled by Colin Chapman, here are some examples of admirable personal finance qualities emulated by leprechauns, as well as examples of what NOT to do.
1.    “[Leprechauns] are incredible skinflints, hoarding material goods and wealth with a fanatical passion, loathe to spend a single penny or cent even when their lives depend on it.”
Lesson: This might be the art of saving (to the extreme). While saving money is good, there are certain things that shouldn’t be skimped on, such as maintaining your health.
Say our leprechaun friend gets bitten by a poisonous snake in the middle of the woods. Sure, he may be lumped with a couple hundred dollars for that 911 emergency response, but it’s better than falling over dead because he refuses to call the doctor. That’s what we call perspective. It may not be fun, but some expenses are part of life and that’s why setting aside an emergency fund is a must. To save smartly, review your health plan regularly and contribute to a flexible spending account to get the biggest bang for your buck.
2.    “[Leprechauns] strongly favour garments of green, but their clothing is never extravagant. Extravagant clothing costs too much.”
Lesson: The road to wealth is lined with self-control towards material goods.
Feel free to fill your wardrobe with items that you cherish and enjoy, but not at the expense of things that you cannot afford. Extravagance not only costs you money today, it might also damage your tomorrow if you pay for such extravagance (a vacation you can’t afford, a house outside of your price range, etc.) on credit or by taking out unsustainable debt. Having a tough time keeping away from the Coach shop? One tip is to avoid the malls, or put away your credit card and only use cash.
3.    “Painfully proud of their skill at cobbling, all Leprechauns possess the best footwear they can make, usually of supple black leather with a polished silver buckle.”
Lesson: If you are particularly gifted as a certain task, why not do-it-yourself and show it off?
A whiz in the kitchen can bake her own wedding cake, a computer savvy person can build a desktop to customization, and a fashionista can take out a tub of dye and give her faded black clothes a renewed lease on life. Lesson #2: buy high-quality and classic shoes that can withstand the test of time (and what can be more classic than black leather shoes with a silver embellishment?). Cheaply-made shoes offer little support and often need to be replaced after just a few wears. I’m partial to this lesson because I used to buy shoes that looked cute but that offered no support for my feet, and fell apart after just a few months. Finally, I realized (to the relief of my aching soles), that it’s better to buy quality. It’s even better to buy quality on sale!
4.    “Generally wealthy (although you wouldn’t know it to look at one), the myth of a Leprechaun’s pot of gold isn’t that far-fetched.”
Lesson: Diversify.
While gold has a place in a well-diversified portfolio, holding 100% of your wealth in gold isn’t quite wise. It would be better for leprechauns to diversify into stocks, bonds, and other commodities, and to construct a portfolio that matches their risk tolerance and goals.
5.    “Some traditional Leprechauns run small cobbling shops, often dingy affairs that attract surprisingly wealthy clientele due to their excellent craftsmanship.”
Lesson: Great quality of work will attract great clients.
Make time to continually invest in your skills. And if you can combine your skills with a career you are interested in, it will be that much easier to devote more time to it and reach professional success. One way to add to your earnings is to develop a side business or do some freelance consulting. These side projects can round out your professional portfolio, widen your network, and lead to more opportunities down the road. Spending for your personal development, whether that means taking a class or practicing your special craftsmanship (be it designing jewelry or cobbling shoes) is usually a worthwhile investment in your future. With some hard work – and maybe some Irish luck – you might leverage that into even more earnings or a new career.

5 Things You Should Know About Buying a Short Sale Home

2011-03-15T12:25:00.001-06:00

Short sales are increasingly seen in the real estate market and some new home buyers may have questions regarding them. Basically if a homeowner has difficulty making mortgage payments, can’t refinance and wants to avoid foreclosure for missed payments they can try to convince their lender to sell the house for less than the mortgage is worth and take the loss. This is a “short sale” because it is short of the amount owed on the mortgage. The seller gets no money but they walk away with their credit relatively intact.The lender loses money but doesn’t have to undergo foreclosure proceedings. It’s not a win-win situation but for both sides it’s not as bad as it could be.

For someone looking to snap up a property here are five things to keep in mind when buying a short sale.
1. Short sales are subject to lender approval so don’t plan on getting an incredible deal. The lower the offer the more the lender will lose and the more likely they are to reject it. Lenders may also try to get the seller to stay in the home by refinancing the existing mortgage thereby avoiding all the paperwork involved in a short sale. If there is more than one mortgage on the house then things become complicated as the secondary and maybe tertiary lender need to approve the sale as well. If you can find out how much is owed on the mortgage this will help you in determining what your offer should be.
2. Short sales draw lots of offers so expect some competition. The more offers there are the closer the home price gets to the market value. This is another reason to not expect a great deal. If you can find out how many offers have been put in you can use that to gauge what your offer should be.
3. While a normal home sale can be closed in a matter of weeks short sales take much longer. This is a consequence of the internal regulations lending institutions often have so there is no way around it. Be prepared to wait two or three months until closing if not longer.
4. The value of having agents with experience in short sales can not be overstated. Make sure your own agent has this experience but also find out the track record of the listing agent. Do they have short sale experience? Have they ever closed on a short sale? If not you may want to pass on the property.
5. Get pre-approved. Mortgage approval will help speed you through the already long process of a short sale as will a sizable down payment. Consult a mortgage broker to find out what mortgage loans are available to you.
One final piece of advice. Short sales are often sold “as-is” so make sure to have a qualified home inspector look over the property and know that you will be responsible for any necessary repairs.

Procrastination Remedies

2011-03-14T06:15:00.002-06:00

The Little Book of Procrastination Remedies

Post written by Leo Babauta.

Procrastination is one of those topics that, it seems, I can’t write enough about. There isn’t a person among us who doesn’t procrastinate, and that’s a fact of life.
It’s deep within us. We think we’re going to do something later, or read that classic novel later, or learn French later. But we always overestimate how much we can do later, and we overestimate the ability of our later selves to beat procrastination.
If our current self can’t beat procrastination, why will our future self do it?
I thought I should cover some of the best procrastination-beating strategies, in light of my recent book, focus. People seem to want ways to beat procrastination, so they can actually get down to focusing.
Here’s a quick guide.

Why We Procrastinate

Let’s take a quick look at what makes us procrastinate. There are several reasons, which are related in various ways:
1. We want instant gratification. Resting on the couch is thought of as nicer, right now, than going on a run. Reading blogs is easier, right now, than reading a classic novel. Checking email or Facebook is easier, now, than doing that project you’ve been putting off. Eating chocolate cake is tastier, right now, than eating veggies.
2. We fear/dread something. We might not write that chapter in our book because there are problems with the writing that we haven’t figured out (often because we haven’t thought it through). Or we might be afraid we’re going to fail, or look ignorant or stupid. We’re most often afraid of the unknown, which has more power because we don’t examine this fear — it just lurks in the back of our minds. Dreading or fearing something makes us want to put it off, to postpone even thinking about it, and to do something easy and safe instead.
3. It’s easy – no negative consequences right now. When we were in school and had a teacher looking over our shoulders and scolding us if we didn’t do our work, we tended to do the work (until some of us learned that we could tune out the scolding, that is). But when we got home, sometimes no one would be looking over our shoulders … so there wasn’t any immediate negative consequence to watching TV or playing games instead. Sure, we’d get a bad grade tomorrow, but that’s not right now. The same is true of using the Internet or doing other kinds of procrastination tasks — we’ll pay for it later, but right now, no one is getting mad at us.
4. We overestimate our future self. We often have a long list of things we plan to do, because we think we can do a lot in the future. The reality is usually a little worse than we expected, but that doesn’t stop us from thinking the future will be different yet again. For the same reason, we think it’s OK to procrastinate, because we’re going to do it later, for sure. Our future self will be incredibly productive and focused! Except, our future self is also lazy, and doesn’t do it either. Damn future self.

Four Powerful Solutions

Now that we know the problems, the solutions aren’t that hard to figure out. Just don’t put them off, OK?
1. Stop and think. When we allow the above thoughts to go on without really being conscious of them, we procrastinate. When we actually pause and think about those thoughts, we can rationally see that they’re wrong. Instant gratification in the form of goofing off or eating junk food can lead to problems later. Fears are overblown and shouldn’t stand in our way. Not having negative consequences now doesn’t mean there won’t be consequences later. Our future self isn’t as bad-ass as we like to think. So think about what you’re doing, and start to do the more rational thing. Use the strategies below as well, but thinking is the start.
2. Enjoy the process. When we dread something, we put it off — but instead, if we can learn to enjoy it, it won’t be as hard or dreadful. Put yourself in the moment, and enjoy every action. For example, if you want to go out to run, don’t think about the hard run ahead, but about putting on your shoes — enjoy the simplicity of that action. Then focus on getting out the door — that’s not hard. Then focus on warming up with a fast walk or light jog — that can be nice and enjoyable. Then feel your legs warm up as you start running a little faster, and enjoy the beautiful outdoors. This process can be done with anything, from washing dishes to reading to writing. Enjoy yourself in the moment, without thinking of future things you dread, and the activity can be very pleasant and even fun. And if it is, you won’t put it off.
3. Set up accountability. If no one is looking over our shoulder, we tend to let ourselves slack off. So set up a procrastination-proof environment — find people to hold you accountable. I joined an online fitness challenge this month, for example, so that I’d report my workouts to the forum. I’ve done the same thing for running, quitting smoking, writing a novel. You can even just use your friends and family on Facebook or email.
4. Block your future self. Your future self is just as likely to put things off. So block that sucker. Use a program like Freedom to block your Internet access for a predetermined amount of time, so your future self has to actually focus instead of reading blogs. Turn off your cable TV, get rid of the junk food in your house, cut up your credit cards … do whatever it takes to make it really hard for your future self to procrastinate or give in to temptation, or at least force your future self to pause and think before he does anything dumb.

A Different Mindset

Three other things that must be said about procrastination:
1. Do what excites you. If you do what you’re excited about most of the time, you’ll be less likely to put it off. Focus on why it excites you, rather than the dreaded aspects of the activity. I do this and my procrastination is lower than ever.
2. Productively procrastinate. If you’re going to procrastinate, do other productive things instead. So if you don’t want to do your project, at least get some smaller tasks done. Read more.
3. Sometimes, procrastination is OK. I’m not anti-procrastination, at all. This guide is for those who want to beat it, but in my book, lazing around can be a beautiful thing. Reading stuff on the Internet that I’m interested in isn’t a bad thing. Sometimes, give in to procrastination. But other times, you might want to get off that lazy butt and actually accomplish something. :) (Smiley face is from Marty)

Refinance Demand Dips as Mortgage Rates Reach 10-Month High

2011-03-10T13:51:00.002-07:00

	Mortgage News Daily
Message from Marty: If you have questions about refinancing your current mortgage, call me sooner than later because this is only one of dozens of articles I saw this week extolling news of things to come in the mortgage rate world. Call me at 801-540-5108

Refinance Demand Dips as Mortgage Rates Reach 10-Month High

The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending February 4th, 2011.
The MBA's loan application survey covers over 50% of all U.S. residential mortgage loan applications taken by mortgage bankers, commercial banks, and thrifts. The data gives economists a snapshot view of consumer demand for mortgage loans.

In a falling mortgage rate environment, a trend of increasing refinance applications implies consumers are seeking out lower monthly payments. If consumers are able to reduce their monthly mortgage payment and increase disposable income through refinancing, it can be a positive for the economy as a whole (may boost consumer spending. Also allows debtors to pay down personal liabilities faster). A trend of declining purchase applications implies home buyer demand is shrinking.
Excerpts from the Release...
The Market Composite Index, a measure of mortgage loan application volume, decreased 5.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 3.9 percent compared with the previous week.
The Refinance Index decreased 7.7 percent from the previous week. The four week moving average is down 1.5 percent. The refinance share of mortgage activity decreased to 66.6 percent of total applications from 69.3 percent the previous week.
This is the lowest refinance share observed in the survey since the week ending May 14, 2010.
[Image or graph removed from email.
The seasonally adjusted Purchase Index decreased 1.4 percent from one week earlier. The unadjusted Purchase Index increased 4.8 percent compared with the previous week and was 16.6 percent lower than the same week one year ago. The four week moving average is down 0.8 percent.
[Image or graph removed from email.
The average contract interest rate for 30-year fixed-rate mortgages increased to 5.13 percent from 4.81 percent, with points decreasing to 0.84 from 1.02 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. This is the highest contract 30-year rate recorded in the survey since the week ending April 9, 2010. The 32 basis point jump is the largest rate increase since June 2009. The effective rate also increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 4.29 percent from 4.13 percent, with points increasing to 1.02 from 1.01 (including the origination fee) for 80 percent LTV loans. This is the highest contract 15-year rate recorded in the survey since the week ending May 7, 2010. The effective rate also increased from last week.

"Mortgage rates increased last week as many incoming economic indicators continue to show stronger growth than had been anticipated. Refinance volume continues to be low, as fewer homeowners with equity have any incentive to refinance," said Michael Fratantoni, MBA's Vice President of Research and Economics. "We are at the beginning of the spring buying season, but purchase volume remains weak on a seasonally adjusted basis."

7 Tax Tips for Your 2010 Return

2011-03-09T07:05:00.001-07:00

7 Tax Tips for Your 2010 Return

3/2/2011 11:13:00 AM

These breaks could boost your refund -- or reduce what you owe. ...Read the rest of the story

Coming to a Lender Near You: 20% Down Mortgages (that's how you get the best rate and terms!)

2011-03-07T09:15:00.001-07:00

20% Down Payment Required? WHY?

The days of the NO money down mortgage are long behind us, folks.
After the housing boom and subsequent crash, statistics revealed that those with little or no "skin in the game" were much more likely to default on their home loans.

At the same time, banks and mortgage lenders were selling off the bulk of their mortgages to investors, so neither homeowner nor lender was really retaining any risk. As a result, politicians came up with risk retention requirements under the Dodd-Frank Act, which are set to take effect soon.

The requirement will force banks to hold onto five percent of the mortgages they sell to investors, unless of course, borrowers come up with 20% down payments.

If they do, the mortgage will be considered a Qualified Residential Mortgage, and the whole thing will be able to be re-sold to investors.
These types of home loans will be cheaper because of their marketability, meaning mortgage rates may be significantly lower if you're able to put 20% down.
And if you're not, you might be stuck with a higher rate and monthly mortgage payment to boot.
Banks and mortgage lenders have already been getting back to basics by requiring full income and asset documentation, along with more significant down payments.
So expect underwriting requirements to get tougher and tougher moving forward.
If you know you won't be able to come up with 20% down, there are still alternatives, such as FHA Loans, which only require 3.5% down, though those loans are subject to mortgage insurance premiums, which have risen lately.
Either way, expect mortgages to get more expensive, unless you're the most squeaky-clean borrower out there!

Choosing the right Realtor: How can you be sure?

2011-03-04T22:01:00.002-07:00

I work with great Preferred Realtors who I recommend without hesitation. Call, text or e-mail me so that I can refer you to someone who will represent your needs perfectly! :)

Signs You May Have the Wrong Realtor

Selecting the best agent to represent you in purchasing is one of the more fundamental priorities a buyer ought to have when getting started.

When selecting an agent you should start by doing an internet search of the type of agent that seems to be the best suited to help you in a particular neighborhood or community type. If an agent puts themselves out there as being an expert in a particular niche, then they likely are.

Working with the wrong agent can cost you precious time and even money.

Here are some signs you may have the wrong agent:

Only showing their listings – This is a big red flag. As an agent, we always want to showcase our listings. However, limiting a potential buyer to a small pool of properties that include only their listings or the listings in their office is flat out ignorant. Be sure that you are seeing everything in the MLS.
No email alerts – In today’s world timing is everything. As new properties get listed you need to know right away. Do not rely on your agent to see a new listing and to think of letting you know. The technology is now in place to get email alerts as new homes get listed that match your specific criteria. This is a must and if your agent is unfamiliar with this technology then find another one quickly.
Limited agency – If your agent doesn't ask to work with you exclusively. Ask the agent how they will be representing you. You would want to enter into a buyer-broker agreement so that your agent is representing your interests fully.

To find out exactly how active a prospective agent has been simply ask them. Don’t take their word for it. Request a printout of all the sales they have had over the last 12 months. Make sure their closed sales match what you are looking for. Be sure the agent you choose will be an advocate for your Real Estate purchase.

Wrong House in the right neighborhood? FHA 203k Loans Part 2

2011-03-04T09:47:00.001-07:00

Click on the link below for an excellent video about how great the FHA 203k loan is if you would like to buy a home needing repairs. Call me and I can go over the program in detail.

I have a support team who does 203k loans ALL DAY LONG!

My processing, underwriting, and closing team are experts at what they do. THIS is the formula and secret to having a GREAT 203k loan experience!

Marty Qualls, your 203k loan expert!

http://tbwsdailyshow.com/2011/03/02/203k-home-improvement-loans-part-2-of-2/

Another Reason to Buy or Refinance Your Home Soon

2011-03-03T00:12:00.002-07:00

Another Reason to Buy or Refinance Your Home Soon

April 18th, 2011 is an FHA deadline for another increase of Mortgage insurance; this time Up Front Mortgage Insurance.