Archive for October, 2007
Run Don’t Walk To Magna The Last Affordable Frontier In Salt Lake County
October 30th, 2007 Categories: Magna
Run Don’t Walk To Magna The Last Affordable Frontier In Salt Lake County
Magna is located right off of highway 201 and you can be down town Salt Lake City in 15 minutes and to the airport in 10 minutes easy.
Magna is little town that is different than most Salt Lake City Suburbs. Magna has some really cool old buildings on Main St. It has affordable housing and is home to the Kennecott Copper Mine Smelter.
Magna is going through some changes, it is growing. Main Street is getting some much needed face lifts and new businesses are starting to go there. The Empress Theater is going in full swing with the Mystery Of Edwin Drood, very affordable entertainment.
Magna has Brand New Single Family Homes that you can buy for under $250,000 and yes this is not a misprint there are a few BRAND NEW HOMES UNDER $200,000.
Click to view Magna Homes for Sale
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Rates In Salt Lake City
October 26th, 2007 Categories: Mortgage
Rates have had some improvements over the last week. It is a great time to do buy or refinance your loans now.
Conforming mortgage rates mentioned below are considered with loan amounts up to $417,000 for a single family residence and is owner occupied. It is with proving your income and a “full document borrower”.
|
Program |
Rate |
APR |
| 95% | 6.13 | 6.26 |
| 100% With Mort Insurance | 6.25 | 7.61 |
| 100% No Mort Insurance | 6.75 | 6.89 |
| My Community 100% | 6.75 | 7.52 |
| VA 100% | 6.25 | 6.39 |
| FHA 97% | 6.13 | 6.90 |
The rates quoted are based on a purchase price of $400,000 on a 15-day lock. On these conforming loans, there are no prepayment penalties involved. The above figures are deemed reliable but not guaranteed. This advertisement is being provided for informational purposed only and is not to be construed as a loan commitment of any kind. Actual loan qualifying is subject to verification and approval of income, credit, property, appraisal and other factors. Rates, fees, and programs are subject to change at any time without prior notice. A detailed good faith estimate will be prepared upon your application for a loan.
| Discussion: 1 Comment »
Grant Money For Salt Lake Home Buyers
October 24th, 2007 Categories: FHA, Mortgage
Cindee Stone called me and said that the grants had been funded and there was money to be had. In the hectic day of helping families move around the country, that is a call I don’t mind getting. So I asked her a few specific questions about grants because she is the grant queen.
1) What is a grant?
A down payment assistance grant is not free money. Depending on what city you get the grant from will determine if you have to pay it back at some time or if it is forgiven. For instance, in Taylorsville they have a $5000.00 grant and if you live in that home for 5 years it is forgiven. If you get a grant in Magna for $10,000 it is forgiven after 15 years. But, if you get a grant where there is not a city grant available and we use the federal grant which is up to $10,000, it is never forgiven. But, you will only need to pay it back only if you sell the home, refinance and take cash out or take out a 2nd mortgage. So, they are all different depending on the city.
The grant will go in as a silent 2nd mortgage where no interest will accrue and no payment is due.
2) How much can I get?
The grants start at $5000 and can go up to $15,000. There are restrictions on each one, so you would need to call for more details.
3) What can the money be used for?
The money can only be used for down payment and closing cost only.
4) What restrictions are there?
First, there are restrictions on income. There is a scale that is used and depending on how many people are in your family, will determine how much they will allow you to make.
You have to be a first time homebuyer (this includes people who have not owned a home in the last 3 years) or recently divorced.
You also have to have $500.00 of your own money involved in the transaction.
There are other guidelines, but these are the basics. The other guidelines will apply to which grant you are going for and which city.
5) Is it all of Salt Lake?
We currently have money in all cities and counties in Salt Lake Valley. We even have money in Utah county (expect Provo and American Fork)
6) How do I get it?
Me! I will help you determine how much and if you can qualify. I will also assist you in filling out the application and submitting your paperwork. This is all part of the service that I offer to my borrowers.
| Discussion: 9 Comments »
Salt Lake Tribune Newspaper Or Tabloid
October 22nd, 2007 Categories: Real Estate News
- Is this a silly picture I found or a resume of a Salt Lake Tribune Real Estate Reporter?
With Utah’s unemployment being below 3% for a year and under 4% for two years, the tribune is feeling it too.
- The story’s headline, which said, “Utah’s housing boom now a bust,” was misleading and inaccurate. The story only cited statistics regarding home-building permits; the story did not mention existing home sales or the pockets of new-home construction that are doing well. The headline led Tribune readers to believe that all segments of Utah’s housing market are doing poorly. If such broad generalizations are going to be made in headlines, the Tribune needs to include information about each part of the housing market in the story.
The Tribune article quoted an individual who said, ” ‘People are afraid to purchase’ a home right now,” a misleading statement that could cause buyers to miss out on great appreciation opportunities. It’s a disservice to the Tribune’s readers to suggest that prospective Utah home buyers shouldn’t buy now when the National Association of REALTORS® projects Utah will see home prices increase anywhere between 7 and 10 percent in 2008. That means the buyer of a $200,000 home could miss out on $14,000 worth of appreciation by waiting to buy.
The story suggested that Utah buyers have been unable to obtain loans when in fact financing is readily available and affordable. Mortgage rates are still at historic lows, with interest rates on a 30-year fixed mortgage near 6.38 percent, much more affordable than the double-digit rates seen over the years. For buyers who would have needed subprime loans that are no longer available, safer FHA products will be able to help serve their needs.
Utah has strong market fundamentals – good job growth, population gains and low unemployment, which will keep demand for housing high.
Real estate markets are complex and the Tribune’s readers are not served by misleading generalizations that don’t tell the entire story.
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8 Reasons Why You Should Use An FHA Approved Lender In Salt Lake
October 22nd, 2007 Categories: FHA
8 Reasons Why You Should Use An FHA Approved Lender
- 1. FHA Approved Lender Can Offer You Conventional Products, But A Non FHA Approved Lender Cannot Offer You FHA
- 2. FHA Approved Lender Has To Have A $250,000 Net Worth, 20% Has To Be Liquid
- 3. FHA Approved Lender Has To Have A Written Quality Control Plan.
- 4. FHA Approved Lender Has To Go Through Annual Audits Of Their Files
- 5. FHA Does Not Use FICO Score*
- 6. FHA Allows The Seller To Contribute Up To Six Percent For The Buyer*
- 7. FHA Allows The Down Payment To A Be Gift*
- 8. FHA Allows Co-Signers
I only refer FHA Approved lenders to buyers. FHA is not always the best loan out there. However when it is the right one, conventional won’t touch it. Referring to item number one, a lender that is FHA Approved has all the products of the non FHA lenders, but the non FHA lenders don’t have FHA. That fact alone is enough to only refer FHA approved lenders.
Does that mean those lenders that are not FHA approved are not as good? Absolutely NOT. There are plenty of great non FHA approved lenders, they just have less to offer.
In the recent past the Salt Lake City Real Estate market was very strong (Salt Lake 3rd Quarter Report) and conventional loans were lax, so FHA was not used to often but is coming back read FHA Roaring Back To Life In Salt Lake
*(Restrictions apply)
| Discussion: 5 Comments »
When Buying A Home, Should I Get A Home Warranty?
October 20th, 2007 Categories: Buying
Home Warranty 101
A Home Warranty is an insurance policy against mechanical defects of the home. If a mechanical item breaks down the home owner then calls the Home Warranty Company. The company then sends out a technician to look at the defects. The home owner will pay a $55 deductible and the technician will invoice the Home Warranty Company for all of the covered costs over and above that amount.
The basic cost of a Home Warranty policy can start at about $255 for condos and $275 for single family homes. The basic plan for a home warranty policy will include items such as heating, plumbing, dishwasher, garbage disposal, garage door opener, water heater, plumbing stoppages, attic and exhaust fans, duct-work, electrical system, oven/cook-top/range, trash compactor, built-in microwaves, instant hot water dispensers, circulating pumps, toilets, sump pumps, and jetted tubs. A home owner can pay extra for coverage on refrigerators, washer/dryer, air conditioning, and swimming pools/hot tubs.
If you are buying a home I recommend asking the seller to give a home warranty, if they are not willing to purchase one for you. I recommend you purchase one for yourself.
They are so common that it is a fill in the blanks of the Salt Lake Board Of Realtors Purchase Contract, section 10.3
| Discussion: 6 Comments »
Monopoly, Birthday and Christmas
October 17th, 2007 Categories: Not Real Estate
I have always loved the game monopoly. Being in the Real Estate Industry for some time has brought me to appreciate it more and I like to play with my children. I want them to learn Real Estate from a very early age.
I have always liked the movie A Christmas Story, you know the movie. BB Gun, Leg Lamp, You’ll put your eye out, soap in the mouth, tongue stuck on the pole great classic movie.
So today is my birthday and my wife and kids presented me with Monopoly “A Christmas Story Collector’s Edition”. It is really cool, pieces include, soap with teeth marks, leg lamp, bunny suit, broken glasses. instead of chance it is triple dog dare.
| Discussion: 5 Comments »
3rd Quarter Statistics For Salt Lake and Surrounding Counties
October 17th, 2007 Categories: Real Estate News
Average price is up in all but a few zip codes. Volume is down and days on market are up. We have cooled somewhat but we are actually in a good market.
You cannot use the info of the talking heads from national TV. Why? Because real estate is local in nature. There are some markets that are hot and some that are depressed and some that are fairly even, like ours.
What people and agents are experiencing is the comparison felling of the not so long ago market. I like to use the speeding car analogy. When you are going really fast and you get use to the speed and then you slow down to the speed limit it feels a lot slower.
If you would like more detailed information please feel free to post and I will get back to you ASAP.
It is in a PDF format.
Click to see report, It is a PDF format.
Requires Adobe Acrobat Reader Download Free Here
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Property Appraisal
October 13th, 2007 Categories: Buying
The Bank Qualifying The Property
As I mentioned in Things You Need To Know When Buying A Home the Bank qualifies the borrower AND the property. Let’s talk about qualifying the property, for the most part it means an appraisal. When you are borrowing money the bank will require it. If paying cash it is not necessary and sometimes a good set of comparable sales can satisfy the need for an appraisal. How an appraiser does an appraisal.
There are three approaches to appraising a property.
1. The cost depreciation approach.
First the appraiser will establish the value of the land and then what it would cost to build the home today and then minus for depreciation of the building.
2. The income approach.
Take the income of the property minus out expenses and determine a net income and then divide it by the average capitalization rate of the area (look for a post on CAP Rate in the future)
3. The comparable sales approach.
This is the most common used in residential real estate sales. An appraiser will take the recent sales in the area that closest match the subject property and make adjustments to the comps to determine an estimate of value. They are really not trying to establish an exact value such as $218,953.28. They are really trying to determine if the property will work as collateral for the loan.
They also do a basic inspection (NOT to be used instead of a professional home inspection). They will indicate the overall appearance and note if there are utilities and the property appears to be in a normal condition for the area. An appraiser can require that certain items be certified by a licensed professional such as a roof if the roof looks suspect or evidence of electrical malfunctions, then they can ask for an electrical certification.The next thing that the bank looks for in a property is the title work. They want to know if there are any deed restrictions that could affect the value. In residential there are not too many things that will have a real affect.
A good example of a deed restriction. The old Villa Theater on Highland Drive. Well it was bought by Harmon’s grocery store and they put a restriction that if anyone were to buy the land they could not build a grocery store to protect their interest of their store a couple blocks away.So once the borrower and the property finish being qualified then the loan can close and you get the property.
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Things You Need To Know When Buying A Home
October 13th, 2007 Categories: Buying
The Basic Process Of Buying A Home
Well the first one seems to obvious but it starts here. The decision to buy a home.
There are many reasons to buy a home, the two most common.
Investment (read Homeownership As A Savings Plan).
Security Knowing you have a place that is yours and can be passed down.
Once you have made a decision to buy a home, usually (especially first time buyers) people start looking at houses and start dreaming. Which is OK as long as you don’t get your expectations higher than your ability. It is difficult to have seen homes and visualized yourself living there and then have to scale it down. That is why it is so important to get to the money part first.
There are two ways to buy Real Estate, One with Cash, two other peoples Cash or the bank. So if you do not have a couple hundred thousand stashed under the mattress then you need to talk to other people Da bank.
Banks, Mortgage Brokers, Credit Unions… when getting qualified as a buyer (Da banks call you a borrower) they look at a few things. All there digging, prodding, turn your head and cough is to determine the likelihood of you paying them back. Let’s look at some of the things they look at. Da bank qualifies two things in a home purchase, the borrower and the property.
First the borrower
1. Credit-How well do you pay your obligations
a. Typically it Is based on credit bureau rating system known as a FICO Score Except FHA. They like to see at least a 620, 690 is real good 720 and above is great.
2. Income
a. Employment-Where do you work and What do you do
b. Quantity-How much do you make
c. Quality-What’s the likelihood you will make the same amount again. How long have you been at your job?
3. Debt To Income Ratio (DTI)
a. How much will your house payment be Divided by your income (front end ratio)
b. How much, do you have any other debts, combined with a house payment Divided by your income. House+Car+Student Loan+Credit Cards (back end ratio)
4. Loan to Value Ratio (LTV)- How much money do you have
a. $20,000 of your cash on a $200,000 home= 10% down your LTV is 90%
b. The more you have the less questions they ask. If you are borrowing 100% or less than five percent, they start asking a lot of questions. Any Down Payment needs to be verified that it is your money and it is not owed.
All the information needs to be documented. The Two Most Recent Tax Returns, Bank Statements, Pay Stubs, Verification of Employment VOE, The down payment is not borrowed Verification of Deposit VOD, Verification of Rent VOR. If you have been renting from a private owner, you may need to produce twelve canceled checks or some other proof.
Look for qualifying the property
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