Homeownership and Children: It's a great combination!

Study Concludes Homeownership Tied to Positive Outcomes for Children

Homeownership is associated with lower high school dropout rates and lower teen birth rates, according to a new study by professors Richard K. Green and Gary D. Painter at the University of Southern California and Michelle J. White at the University of San Diego.

The study, "Measuring the Benefits of Homeowning: Effects on Children Redux" found that, after accounting for other factors such as parental education, the dropout rate among children living in owner-occupied homes was 2.6 percentage points lower and the teen birth rate was five percentage points lower than for children living in rentals.

Key findings from the study include:

Why FHA Streamline Refinances are so great

The FHA Streamline Refinance has perks!

The FHA Streamline Refinance is a unique mortgage product, available to homeowners with existing FHA home loans. The program was built to be the fastest, simplest way for an FHA-insured homeowners to refinance their respective mortgages.

The FHA Streamline Refinance's big draw is its leniency.
For homeowners using the FHA Streamline Refinance program  -- according to the FHA rulebook--  income is not verified; employment is not verified; and, credit scores are not verified.

So long as an FHA-backed homeowners makes his mortgage on-time payments for a period of at least 12 months, a mortgage approval is all but guaranteed.  Call or e-mail me if you have an FHA loan that you would like to refinance and I can review your benefits. 


The FHA Streamline Refinance is an excellent program with lots of success stories. It remains the fastest, easiest mortgage refinance program in the country.

 

For portions of my Blog Post I would like to thank Dan Green (NMLS #227607) who is an active loan officer with Waterstone Mortgage and writes excellent daily Blog posts about the Mortgage Industry.  

Benefits of closing your home sale or purchase by year end

Benefits to Buy and Sell by year end!

5 Payoffs of Closing Escrow By Year's End
By Tara-Nicholle Nelson | Broker in San Francisco, CA 
Every intentional human behavior has one or more payoffs. Sometimes they are rewards we’re consciously aware of, like getting our literal paychecks in exchange for the sweat of our brows. Other times, we are much less conscious of the potential payoffs of our behavior, as when someone procrastinates at filing their taxes to avoid the realities of their financial situation (for a while - the tax man always cometh, sooner or later).

Psychologists call these less-obvious payoffs “secondary gains.” According to them, a payoff is a payoff, whether or not you know you’re getting it!

When it comes to putting a firm, year-end deadline on your personal mission to buy or sell your home, there are the obvious payoffs of having 2013 dawn on your new life in your new home, being out from under water or simply being able to move onto a new phase of your life.  But there are loads of secondary gains, as well.

Here is a handful of payoffs, some obvious, some less, which you stand to realize by getting your home purchase or sale closed before the curtain drops on 2012 - and the ball drops on 2013:

Don't Procrastinate.

If you have a home loan call me for refinance analysis!

A post card hit my clients mailboxes today to remind them that rates are at near historic lows and if they have a home loan, they can probably see a significant savings each and every month by refinancing!

I'm encouraging my clients to call now to see how much they can save!

Gas Prices are UP.  Airline Travel is UP. 
Home Mortgage Refinance Rates are DOWN! 

Thank you again for the wonderful experience! - October 16, 2012 closing testimonial

The dream of buying my own home has come true!! 
Amy Livernois

Marty, I wanted to thank you again for the wonderful experience I had in purchasing my first home!

As you know, I went to 3 lenders before I met you and they couldn't figure out how to get the loan done.  YOU FIGURED IT OUT! 

You suggested options, kept working with my situation and were creative enough to enable me to move forward and close my loan!

You were helpful and kept communicating with me from the very first time that Bill Anderson recommended and introduced me to you until closing!  VERY impressive!

Great follow up every step of the way! - October 12, 2012 closing testimonial

Thanks again Marty for the great job you do!

Greg and Amy Frei

Marty, we called you to help with our refinance because you were the one we knew would help us with the analysis we needed to make a good decision!

As you have always done before, you reassured us with your great follow up every step of the way!  
Even in this difficult mortgage environment, you were excellent in resolving any issues to make sure that we could lock in on a rate of a lifetime!

FHA Guideline Change Expected

FHA : "Ignore" Foreclosures, Bankruptcy, Short Sales? 

Major derogatory events include foreclosure, short sale, and Chapter 7 bankruptcy. Current guidelines require a mandatory waiting period of each of the following events, assuming credit has been re-established by the borrower :

• Foreclosure : Waiting period of  3 years since sale date of foreclosure before eligible for FHA-insured financing
• Short Sale : Must wait 3 years from consummation of short sale closing before eligible for FHA-insured financing
• Chapter 7 Bankruptcy : Must wait 2 years from Bankruptcy discharge before eligible for FHA-insured financing

Under the FHA's expected new plan (anticipated within the next 90 days or sooner), these waiting periods will be waived in full.  Soon, FHA-insured loans may be available to home buyers who may have been recently foreclosed upon; for whom a short sale was necessary; or for whom a Chapter 7 bankruptcy was discharged yesterday.

The FHA's new waiver on foreclosures, short sales and bankruptcies would add to the national pool of home buyers, creating buy-side demand for housing and upward pressure for home values nationwide. 

Turn your water off!

Turn your water off before going on vacation!

Do you know where your main water shut off valve is in your house?  Is it accessable?  Have you turned it off lately?  Does it turn off easily or do you need to always go and get tools to get it to move? 

All of these questions are warming up to, "why it is important to know where our main water shut off valve is in our home?".  Knowing and doing the following can prevent what happened in the photo to the left when this cute family went on vacation!


Summer time is vacation time! And so is water damage caused by not taking some precautions before going on vacation.  The top insurance claims relate to water damage and the top 3 are:

1. Washing machine valves and hose failure (I learned my lesson to ALWAYS do this in 1986 when we went on vacation and I didn't shut my washing machine valves-above the washing machine-off.  The hot water hose burst and when we came in the front door after our wonderful week away from home, the home humidity felt like a sauna!)
2. Reverse Osmosis drinking water system-older lines break 
3. Sink or toilet valves breaking or leaking

Before you go on vacation this year, turn your main water valve off, it's usually located in your home.  If you can't find the valve or don't want to turn the main water off, in order to avoid a "sauna surprise", turn your washer hot and cold hoses off and turn your gas water heater thermostat down.

When you get back from vacation and you are all rested up, check your sink or toilet valves and make sure they aren't leaking or are corroded. Nothing worse than water damage and having to make an insurance claim!  :(

Tips for homebuyers in a changing market

The real estate market is changing!  Home sales are rising, properties are selling faster and home prices are going up!

I read and appreciated Shawn Janke's (President of Northern Wasatch Association of Realtors) article in today's Standard Examiner Homefinder section. In his article, Shawn provides tips for homebuyers to follow so that they will have success in today's real estate market.

I have taken the 5 Tips in the article and added my own personal experience and comments to help homebuyer's be successful in today's market.  :)

Tip 1: Get Pre-Approved for a mortgage-I have written many blog posts that tells of the value of a FULL credit approval letter.  A FULL credit approval is backed by a full application, credit report and an automated underwriting decision (AUS).  I provide a FULL credit approval letter to my clients at NO CHARGE and this puts their real estate offer at a significant advantage when submitting an offer!

Tip 2: Do your research-With market knowledge and the competitiveness of the buyer's for the home you want, the homebuyer can then gauge how quickly they will need to move on a listed property.  Budgeting for future payments, types of loan programs available to meet financing needs and payment size are things that I review in detail with all of my clients.

Tip 3: Be ready to compete with other buyers-I see larger earnest money deposits recommended by Realtors I work with because it gives the seller and the listing agent a loud and clear message: "I am a serious buyer!".  I have even seen NONREFUNDABLE earnest money offers drive down the sales price too.  Gutsy to put in a non refundable earnest money offer, but it works to get a lower price in some competitive situations!

Tip 4: Be ready to act quickly-as mentioned in Tip #2, as your do your research and work with a professional Realtor, you will recognize "this is a good deal".  When you know it is a good deal, be ready to make and offer right away!  Make sure that your Realtor knows your search criteria and when they notify you of a home coming on the market that meets your criteria, look at it immediately and if the home meets your needs, make the offer!

Tip 5: Try finding homes before they're listed-make sure you mention to your Realtor to let you know if they know of any homes that are about to come on the market.  Sometimes, Realtors get tips from other Realtors they network with or who are in their Real Estate office/company and this can turn out to be a great way to find your perfect home!

Today's Real Estate market is a wonderful opportunity!  With great mortgage rates, depressed prices (which are now beginning to climb) and motivated sellers, working with your homebuyer tool kit (the 5 tips!) will give you the best chance of success!  I look forward to helping you with your mortgage questions and needs.  :)

Automatic Mortgage Relief for VA borrowers!

The Federal Housing Finance Agency announced that members of the military who face transfer and are underwater on their mortgage-meaning they owe more than the market value of their home-will automatically be approved for short sales.

In addition, the loan guaranteed by Fannie Mae or Freddie Mac (a requirement for the short sale relief) will not pursue any balance on the loan that's left over after the short sale.

"It is in everyone's interest for the men and women serving in our armed forces to focus on the important job they are doing defending our country, rather than worry about the maintenance and leasing of a property in another jurisdiction," said Edward J DeMarco, acting director for the FHFA.

How to win a bidding war

How to win in a bidding war!

The latest Board of Realtors report released yesterday shows a 12.8% year over year increase in homes put under contract and a 4.1% month over month increase for the largest monthly gain since 2006.

As home buyer's enter the real estate market and find tight inventory in their price range, multiple offers are the norm for the past 30 days of activity in my experience.  The current multiple offer environment we are in is not creating extra revenue or profits for the seller's, but it is creating disappointment for buyer's who are not able to get the home they are bidding on.

Tips for buyer's to win in a bidding war are:

1. Make sure as a buyer you are well prepared-a FULL credit approval letter (backed by an application with your lender, a credit report and credit analysis, and an automated underwriting approval) in hand, is a must.  I am receiving phone calls from 80% of listing agents asking if the letter of approval is backed by these things. 
2. What does the Comparative Market Analysis (CMA) tell you?  A Realtor Professional will provide guidance to the buyer on how the home price stacks up against similar homes in the general area the home is located.  Fight off emotions until the offer is accepted.  During negotiation, keep your negotiations on an investment level, emotionally.  Facts and guidance from your Realtor will help you keep your offers realistic.  
3. Don't be afraid to win the bidding war!  After you have successfully won the offer, your next step is to get the home checked out by a professional home inspector.  I am finding that 90% of home purchasers are paying the small price ($250-$500) of a professional home inspection to make sure this is the home they REALLY want.  There are financing and appraisal dates in the accepted contract that allow the buyer to exit the contract if they find the home isn't really what they wanted.