New Financing Options for First Time Home Buyers

October 24th, 2007 Columbus Buyer Info, The Good 5 Comments

Now that the reign of No-Money-Down, Credit-Doesn’t-Matter loans are sinking into the sea, it’s getting a little tougher for first time home buyers and those credit-challenged buyers to get the financing to buy a home.  Here’s a couple of options:

1. Fannie Mae offers an Expanded Approval program– lenders can now say ‘yes’ to borrowers with blemished credit.  You might have a bit higher interest rate, but you’ll also have a stable fixed-rate loan.  Your lender will need to be able to submit your application through the Fannie Mae Desktop Underwriters system.  Some lenders can also offer a bonus Timely Payment Rewards option– this feature rewards the home buyer’s good payment record by reducing the interest rate (when was the last time you had a bank thank you by reducing your interest rate?!?).

2. Fannie Mae also has a program called My Community Mortgage. It’s a flexible mortgage designed for low and moderate income borrowers.  There is no minimum borrower contribution, the mortgage can go up to 40 years, and it’s possible to get 100% financing.

3. Freddie Mac has a similar program called the Home Possible Mortgage, with both fixed rate and adjustable mortgages. The Home Possible mortgage has a unique feature that allows the buyer to own another home.

Search out lenders that offer these programs to fit your needs.  By the way, special kudos to the mortgage blog www.lendingclarity.com– it’s a great source of ‘all the good’ in the mortgage finance industry. Marc Brinitzer is the mortgage broker who writes this blog, and he’s licensed to do business in most of the western US…. so remember that, all you Western-area readers! This blog is a great resource of good information, and I’d trust Marc to handle your needs…..

For Columbus area lenders, feel free to contact Sondra for more information.

Eric Clapton Likes Living in Columbus, Ohio- You Would, Too

October 15th, 2007 Columbus Buyer Info, The Good No Comments

Yes, Eric Clapton has purchased real estate in Columbus, Ohio. While some of the jet-set crowd might wrinkle their noses and giggle at the derogatory nickname of “Cow-lumbus,” suggesting our city is not quite as sophisticated as the glam cities of the world, Eric and others smile and quietly enjoy a comfortable, private, and fulfilling family life.

For those not ‘in the know’…. come see what you’re missing.  We’ve got water views. We’ve got fabulous prices. We’ve even got fun night life! Getting around the city is a snap, our airport runs on time, and international flights zip in and out of the city. Take care of your ‘business’ and come home to a place where your neighbor will simply nod hello and not try to take your picture for the next magazine cover story.

How far will your dollars take you?  For those of the money persuation, this little gem will run you 3.7 million dollars. You’ll get 10 extremely private acres, a private dock, a 9,000+ square foot home with all the amenities, a guest house, and an indoor sports/spa complex that includes a basketball court and a great pool. Compare that to real estate in LA or Washington DC.

For the budget minded, a mere $500,000 will get you nearly 3 acres, a comfortable home with 3,700 square feet, real views of the water, and an indoor pool.

Want to consider living in the Columbus, Ohio area?  Contact Sondra– she’s a CRS Realtor and knows the market well.  There’s many more choices available… we’ve got a strong Buyer’s Market going here.

Columbus real estate is a good investment– central Ohio offers the best of all worlds– big city life, Midwest sensibility, privacy, and easy access.  We’re a well-kept secret you need to discover….

99.2% of Mortgages Are NOT In Foreclosure

October 8th, 2007 Bank-Owned/Short Sale Homes, Columbus Buyer Info, Columbus Seller Info, The Good 4 Comments

That’s a line from a report issued by Gary Watts, a real estate economist and forecaster for the real estate industry in California. There’s been a lot of buzz in the real estate blog world over his report he presented August 2007 in Monterey, CA at a Coldwell Banker retreat titled, “The Real State of Real Estate.”

In addition to the startling fact titled above (due to the fact that real estate drama has been a favorite topic of big media), here’s a couple other pertinent facts that will help put the Big Picture into proper perspective:

1. Sub-Prime loans make up only 5% of all the loans in the US.

2. Media reports of ‘massive delinquencies and huge foreclosures in the sub-prime market’ are not accurate– they are lumping three categories of a delinquent payment, a notice of default, and a foreclosure together.

3. Only 3.23% of all sub-prime loans (that’s 3.23% of 5% of the market– see #1 above) have gone from the ‘notice of default’ into the foreclosure process.  Only 1.28% of all prime loans have entered the foreclosure process.

4. As of July 2007, there was 1 foreclosure filing for every 693 homes in America.

5. For the 3.23% of sub-prime loans going bad in #3 above, 68% of these people are able to prevent the foreclosure by refinancing or selling their home.

6. In 2006, the US had a combined foreclosure (sub-prime and prime loans) of only 1.09%.

7. For the fore-closures that happened, the top 4 reasons they occurred were: 1. Fraud  2. Unethical lending  3. Loss of job  4. Medical crisis.

Why Big Media LOVES Bad Real Estate News

October 5th, 2007 Bank-Owned/Short Sale Homes, Columbus Buyer Info, Columbus Seller Info, From Professional to Personal 3 Comments

There’s a great article written by Dillon Devereaux of the Triangle News in North Carolina regarding this topic.  It’s one I’ve often wondered about…. I mean, when was the last time you heard Big Media showin’ a little love when it comes to real estate? When real estate is rolling, there’s a lot of muttering or silence. But get a few negative numbers in there, and we are slammed non-stop with stats and bad press.

In a nutshell, Mr. Devereaux believes there are 3 reasons why network television chortles with glee and negativity:

1. Real estate advertising is local.  There are little advertising dollars in the national coffers supporting television’s monthly bills.

2. All major media networks are owned by publicly traded companies. They cover Wall Street and are involved in Wall Street.  There is an interest to point investors towards the stock market… and if the stock market is having a downturn, it’s better to focus on downturns in other areas… like real estate.

3. There’s a lot of misinformation and partial information being presented.  “Consider a report that discusses a 25% decline in home sales…when the news caster fails to disclose that the drop was from an all time record high in sales, it skews the picture of real estate.” Viewers need to work at reading between the lines of what is being presented.

To get a REAL picture of what your local market is doing, talk to a local realtor who is working/living/breathing real estate 24/7… one who will present a true picture, and not give you a ‘song and dance’ from the other end of the pendulum.  (Living in the Columbus, Ohio area?  Call Sondra….) As my grandmother always said… “listen with a grain of salt– and then get the real answers you need”….

Homebuyer Help- Ten Tips to Assure Your Home Loan Approval

October 1st, 2007 Bank-Owned/Short Sale Homes, Columbus Buyer Info, Columbus Seller Info, The Good 1 Comment

Barb Collier of Metrocities Mortgage graciously allowed me to share these important credit tips for all buyers who want to have their loan close:

1. Do NOT apply for new credit– your credit score can lose points each time a creditor or lender pulls your credit report.

2. Do NOT pay off collections or ‘charge offs’– you can pay off old accounts at closing.  Doing so sooner could drop your credit score…

3. Do NOT close credit accounts– it’s possible that your debt ratio will look like it has gone up.  This can also affect other factors in your credit score.

4. Do NOT max out or over charge your credit cards– Try to keep your credit balances below 30% of your credit limit during the loan process.

5. Do NOT consolidate your debt– you can be penalized for this.

6. Do NOT do things that can raise a ‘red flag’ by the credit scoring system– this would include adding new accounts, co-signing on a loan, changing your name or address with the credit bureaus, buying new major purchases (furniture, cars, etc.).

7. DO join a credit watch program– you can monitor your own credit report (you will not get dinged for a ‘hard’ inquiry).

8. DO stay current on existing accounts– one 30–day late notice can cost you.

9. DO continue to use your credit as normal– if it appears that you are changing your pattern, it could raise a red flag.

10. DO call your loan officer– ask your loan officer before doing anything that impacts your finances… a little caution could save your loan.

For more tips and good information on how credit scores are created, go to Credit Score Basics in Real Estate.