Questions You SHOULD Be Asking Your Lender

We have run this post before but want to make sure you still are asking the right questions of your loan officer. Here is a great list from Dean. – The KCM Crew
More and more, consumers are learning that there is much more to getting a mortgage than just the interest rate and points.  A good mortgage planner is more in the advice business than the lowest price business.  With tightening guidelines, often the question first is “Will the loan be approved?”  But moreover, the borrowers’ concerns need to involve some of the answers to these non-price questions:

1. What type of lender should I use?

There are three basic types of lenders.  Mortgage BROKERS promote a broad product menu, competitive pricing, and entrepreneurial approach; however, BROKERS cannot lock, commit, or approve your loan because they are not actual lenders.  Banks and Credit Unions rely on financial strength, direct lending capabilities, and stability; however, the have limited product menus and often a “cover my ass” mentality.  Mortgage BANKERS blend the best of both- direct lending ability, financial strength and stability, wide product offerings, competitive pricing and the entrepreneurial spirit.

2. What loan products should I be considering?

Make sure your lender has multiple types of products (Conventional, FHA, VA, State Mortgage Agency Products, etc.).  While most people today do choose a 30 year fixed, it is not always the wisest choice.  Borrowers need to consider how long they will be staying in the home and any changes in their income during that time period before just accepting the same loan as everyone else.  Additionally, with many properties in need of some renovations or repairs, you need to explore the FHA 203K Program discussed in last week’s blog.

3. Should I lock or float my interest rate?

Most mortgage planners are trained to dodge this question.  I believe you should be hiring an expert who should have an informed opinion about the direction of rates….in the short term and the long term.  Weighing numerous factors ranging from your projected closing date to upcoming economic reports, a good mortgage planner can counsel a client into saving money.  While no one can predict with absolute certainty, you need to reach a comfort level that the lender you choose has the best information and your best interest at heart.

4. What are mortgage rates based on?

There is only one correct answer.  It is the pricing of Mortgage Backed Securities.  (Unfortunately, too many people answer the 10-year Treasury Bill.)  If you get the wrong answer on this basic question, what else don’t they know?

5. How do economic releases impact rates?

How will a Jobs Report, a Fed Board Meeting or Inflation Number affect your home loan?  Your mortgage planner should know, should explain it to you, and keep you informed.

6. Can I improve my chances of approval while keeping costs low?

Sometimes even minor improvements in a credit score, the amount of your down payment, or how you position your assets can make a big difference.  During your counseling sessions, your mortgage planner should be advising you on how the “little things can make a big difference’”
Good advice, whether it’s from your doctor, lawyer, real estate agent or lender, can be invaluable.  Finding a lender who is an expert….who has your goals in mind…and who offers creative solutions is one of the most important factors in a successful real estate transaction.

Do Your Part: Making Windows More Efficient

With all the money we spend this time of year on presents, parties, and everything else — who really can afford to let money fly right out the window? Do Your Part during these chilly months to make your windows more efficient to cut down on your utility bills.

In the winter, drafty windows can account for up to 25 percent of our heating bill.

However, there are some fixes that will make all the difference. Common choices include insulating drapes, interior storm windows, and plastic window insulation kit. Each of these solutions has its own pros and cons, but they all insulate the same way. They create an insulated air buffer between your home and the window surface.

Insulated drapes are considered the most attractive option, but experts stress the importance of proper insulation. Drapes must be flush with the wall to effectively create an air space between the window surface and the curtains. Improperly installed curtains that let air pass through the sides of the drapes can actually pull heat away from the room.

Drapes, of course, can be reused and will help reduce utilities costs in every season.

Interior storm windows can be fitted to your windows and are effective at reducing air infiltration. These units use a fitted pane that often clips into a frame. Pane materials range from the more expensive glass to polycarbonate plastic. The advantage to interior storm windows is that they can be reused for several years. Many favor interior storm windows over exterior varieties because they are easier to install will require less maintenance. According to the U.S. Department of Energy, interior storm windows can reduce heat loss by 25 to 50 percent.

Plastic insulation kits are a very economical choice. Kits include a plastic sheet that is attached to a window frame with adhesive tape and then stretched tight by applying heat with a hair dryer. The plastic film is made of vinyl, polyester or polyethylene and can technically be removed and stored for next winter's use. Most homeowners, however, find these kits to be single season items due to tears in the plastic and the milky appearance created by the aging plastic.

So which is your best choice? Go with a reusable option like interior storm windows or insulating drapes. Homeowners that want to realize long term savings should consider upgrading to Energy Star qualified windows. Energy Star-rated windows will have a substantial upfront cost but are the most efficient way to reduce home heat loss around windows.

Whether you go big or small, do your part to keep the warm air inside your home and more money in your wallet.

Be Wary of Cybercriminals, Even on Facebook

Facebook is the latest hot spot for swindlers in search of new victims.

And the world's most popular social networking website can be a gold mine for such crooks, experts say.

Scams on social media sites are much the same as the ones you may have received as e-mail, said Kevin Johnson, a consultant for Secure Ideas, which does security research.

"The big difference in the (social networking) scams is the level of trust that the users have," he said. "People trust them more than they trust e-mail."

Over time, we've become leery of unusual e-mails with strange links, but many people's ingrained suspicions of e-mail scams have not carried over to Facebook. The social network tries to keep track but isn't responsible for everything on its site.

Cybercriminals on Facebook today come cloaked as real friends sending messages asking you to wire them money in a foreign country or posting a note on your wall with a funny video that's really a dangerous link.

The scammers are smart, sneaky and hoping you fall for their tricks. They do it for various reasons, including stealing your identity or using your personal data to sell to marketers or simply spread malicious software that can destroy your computer.

They lure victims many ways, such as offering fake gift cards or a chance to win gadgets simply by clicking on a link or that oh-so-common Facebook "Like" button. But to win, the con artists say, you have to answer some questions and provide a cell-phone or credit-card number.

"People automatically trust that, if it's on Facebook, then it's probably secure and vetted by Facebook in some way," said Tom Eston, a senior consultant for SecureState, a security-management consulting firm.

But even Facebook admits that keeping its customers safe is difficult.

"Facebook faces a security challenge that few, if any, other companies or even governments have faced — protecting more than 500 million people on a service that is under constant attack," company spokesman Simon Axten said. "The fact that less than 1 percent of Facebook users have ever encountered a security issue on the site is a significant achievement of which we are very proud."

Facebook has created a system to combat identity theft, viruses and suspicious log-in attempts. Its security team looks for strange activity that may mean an account has been compromised. The company can delete fake messages and block links. And it does go after scammers in court.

"Security is a constant arms race, and our teams are always working to identify the next threat and build defenses for it," Axten said.

Other companies try to warn customers if their brands get caught up in a scam.
Back in March, fake gift cards popped up for the Olive Garden. The chain posted a message on its Facebook page, warning customers about the scam.

"Once we're aware, we take steps to inform our guests and work with them if they're inconvenienced in any way," Olive Garden spokeswoman Heidi Schauer said.

It's not always easy to tell the difference between a legitimate offer and a fake one.

Experts suggest that users — before clicking on a link — check out any deals first by going to a company's website, examining its Facebook page closely, seeing how many fans the page has and, of course, using common sense.

Some scams involve con artists who use Facebook to contact potential targets. Several parents, for example, recently filed complaints with the Internet Crime Complaint Center, which partners with the FBI, about a Facebook modeling contest based in Florida.

One mom said she paid $5 to enter her son in the contest, from which the winner was supposed to receive a photo shoot for a clothing line and a paid trip to Miami. She began questioning the offer when the organizer asked for her son's birth certificate, Social Security number and credit-card information, according to the complaint, which is pending.

Earlier this month, authorities nabbed a Key West man and accused him of extorting sorority members and pledges at several universities. He had contacted the women through Facebook and demanded they provide racy photographs and web-camera transmissions of themselves. He threatened them, saying their sorority membership depended on their compliance, officials said.

Law-enforcement agencies throughout the world are battling these issues.

In Thailand, a university student on Dec. 4 was arrested for using another student's name to create a fake Facebook page, connect with other people and swindle them out of some of their money.

It's challenging to track down wrongdoers who could be accessing the web from anywhere in the world. In the Sunshine State, the Florida Department of Law Enforcement, which handles some cybercrime cases, prioritizes its cases and goes after violent offenders first.

"The scams are so widespread and so huge that it's hard for anyone to really tackle it," FDLE Special Agent Supervisor Mike Phillips said.

Another source of scams involves the third-party software applications allowed by Facebook. The social network invites developers to create software programs for games, entertainment, businesses and shared interests. So far, there are hundreds of thousands of such "apps" available.

An app may seek permission to access a user's personal data. In most cases, that information stays with the developer, but some of them break the rules and use it for malicious reasons.

So should you stop using Facebook entirely?

"No, it just means we need to use it more carefully," said Johnson, the security consultant. "We need to understand what we are sharing and understand the threat that sharing presents."

(c) 2010, The Orlando Sentinel (Fla.).
Distributed by McClatchy-Tribune Information Services.

Goodbye or Good Riddance 2010? It depends!

As 2010 comes to a close, you can make many observations. Government is the last one into a recession and they are now arriving to this party as late as can be. We are all eating dessert. What I am saying is that the federal, state and local governments are now, and for the next few years, tightening their belts like never before because revenues are down and increasing taxes is not an alternative. Elections in November also proved a point that both sides of the aisle must become more fiscally responsible, like we’ve all had to do at home and at work.

Certain segments of the economy are climbing out, and some have continued to roll. Energy, medical, retail, auto, remodeling, research and technology are all sectors that are bouncing back. Housing in America will continue a slow rebound with more sales units but low sales volume expected in 2011. The short sale and foreclosure inventory will increase and new construction will rebound, assuring that there will still be downward pressure on pricing.
“Sell low, buy low” with predictable interest rates will be the game. If one has equity, it is the time to move because the race to catch the bottom passed in October. Interest rates are expected to rise 2 points and inventory will decrease, so the time to act is now.
Buyers’ confidence and job security will continue to get better with each passing day. Like the stock market, Americans are getting accustomed to the new price point in housing and commercial real estate pricing. The “reset button” is being pushed as we speak. When buyers, sellers, Realtors® and lenders all know what homes and neighborhoods are worth today, we can all move on with our lives and plan accordingly. Just like the stock market, it’s a paper loss in many cases and not an actual loss.
I feel very good about where the Carolinas are heading as well as America. Tough medicine in 2010 but we are resilient and we will be better for it as individuals, families, businesses, communities and government.

Renting v. Buying: The Low Down

The concept of renting vs. buying is becoming an increasingly common theme in our Relocation business.  With major group moves to the area as well as corporate transfers, clients are often finding themselves weighing the advantages and disadvantages of renting or purchasing first when they arrive to the Carolinas. What appears to be a simple question is actually very complex, so be sure to explain your situation to your real estate professional who can help you understand all the benefits and consequences to either choice.
We are seeing a trend where renting is becoming the desired route for some corporate transferees moving to our region.  After counseling transferees, it appears that the following reasons are driving their decision to rent a home/condo/townhouse rather than purchase one:

• Given the current conditions of the economy as well as the real estate market, numerous transferee’s are having a difficult time selling their current home  and either cannot qualify to buy a second home or simply does not want the headache of two mortgages. 
• Another reason for renting first is that they want to get a feel of their destination area before jumping in and buying a home after only a limited time of looking at homes and areas.

Many of our corporate clients understand that their employees do want to rent in the new location, and will pay a fee for rental assistance.  This is a growing trend with corporate relocation.
Whether the relocating person has decided upfront to rent or buy, it is extremely important to find a real estate agent who will understand and meet your wants and needs.  The right agent will have a great knowledge of the real estate market where the client has an interest in and be well-matched in regards to their interests. The agent can assist transferees with their rental search and then stay in communication regarding purchase options when they are ready to buy. The right agent will be the clients real estate expert and can guide them through the rental process, the home buying process, and helping them navigate smoothly through all the complexities of moving to a new city.

Is the Home Building Industry Starting to Rebound?

You’ve heard the saying, “liars figure and figures lie.” Well when it comes to the homebuilding industry, no one knows what to believe. It has been stated that we need 1.7 million new homes each year in the U.S. In the past two years we have built about 1.1 million homes which theoretically puts us behind by 2.3 million homes!
When you look at the millions of foreclosures that are occurring in this country every year, you may be asking yourself why do we need more new homes when we have all of these existing homes that are coming on the market? Well, we have a finite supply of homes that were once occupied and now are not. What is going to happen to those homes and where are the people that were displaced going to now live? At some point, the banks will sell these foreclosed homes to investors who will in turn rent them back to the same people who used to live in them. That will absorb a huge portion of the existing housing inventory but not fill the new homes void.
What does that have to do with building more new homes? Well, there is going to be a slight hiccup in the foreclosure process due to the banks having to get their act together. Between banks not foreclosing or selling their properties and buyers being reluctant to purchase a foreclosed property due to title issues, there will be a shortage of houses available. Thus the builders see this as a window of opportunity to build more homes until the banks get it all figured out.
So what’s in store for builders after the banks get it together and foreclosures flood the market again? Well I don’t think anyone really knows, but I have to believe that a positive buyer confidence index will play a huge part in what happens. To cite a recent example, our new homes division has had its best two months in sales in the past two years. There was no logical reason why given that the stats from building permits and housing starts are at an all time low. What I can tell you is that people are feeling more confident and they are getting used to the new “normal.”
Looking ahead, I believe that a variety of factors will influence the rebound of the home building industry. These include the recent foreclosure delays at the banks, increase in job creation and a rise in buyer confidence. In any event if we, as consumers, rely on the statistics as our sole guide on what we should do, remember “figures certainly do lie!”

Lake Wylie Real Estate South Carolina -5 Reasons You Should Sell Today

Dear Homeowner,

5 Reasons You Should Sell Today

Selling your house in today’s market can be extremely difficult. It is for that reason that every seller should take advantage of each and every chance that appears. There is a fantastic opportunity available right now. Meet with me and see whether it is the right time for you and your family to make a move.
Here are five reasons you should consider selling in the first 90 days of 2011.

1. Interest rates have spiked up.

Rates have jumped over 1/2 point in the last several weeks. The short term result of increasing rates is a surge of buyers jumping off the fence to purchase in fear that rates may continue climbing upward. This is a short window of opportunity. If rates fall again, buyers will jump back on the fence. If rates continue to rise, it limits the number of buyers who can qualify at each price point. Now is the best time to sell your house.

2. If you are moving up, you can save thousands.

If your family goal is to sell your current house and take advantage of the fabulous selection of properties currently available to buy the home of your dreams a at bargain basement price, DO IT NOW! Prices will continue to soften in most markets. However, if you are buying, COST should be more important than PRICE. Cost can be dramatically impacted by rising mortgage interest rates. Do the math and decide if now is the time.

3. During the winter months, the buyers are serious.

We all realize that buyers are not quick to pull the trigger on the purchase of a home today. There is no sense of urgency with the supply of eligible properties at all time highs. However, at this time of year, the ‘lookers’ are either staying warm (in the North) or just busy with other priorities. The home buyers left in the market are serious and are more apt to buy. Less showings – but to more motivated purchasers.

4. You beat the rush of inventory that is coming next year.

Every year there is an increase of inventory which comes to market from January through April as homeowners put their houses up for sale in preparation for the spring market. Here is the number of listings available for sale in 2010.

• January – 3,277,000
• February – 3,531,000
• March – 3,626,000
• April – 4,029,000

We believe there is a pent-up selling demand (homeowners who have held off selling over the last year) that will lead to an increase in these numbers this spring. You won’t have to worry about this increasing competition if you sell now.

5. You have less ‘discounted’ inventory with which to compete.

This year, sellers of non-distressed properties have been given an early holiday present. With banks trying to rectify their foreclosure procedures, there has been a large supply of discounted properties removed from competition. No one knows how long it will take banks to return to the normal flow of foreclosed properties to the market. (Word through the grapevine says the banks will release the foreclosed homes to the market this Spring.) However, until they do, every homeowner has a better chance of selling their property.

Bottom Line

If you are looking to sell in 2011, there may not be a more opportune time than this right now. Serious buyers, great move-up deals and less competition from super-motivated sellers and foreclosures creates the perfect selling situation. Don’t miss it! If you are not working with another real estate  broker, then please feel free to call me at 704-913-4754 to come out and list your property. Our team is looking forward to you hiring us as your personal agent.
Sincerely,
Roz Bailey                                                                                                                 

Allen Tate Realtors

Lake Wylie, SC 29710                                                                                                     

Cell-704-913-4754

Office- 803-222-8547

www.RozBailey.com