Friday, September 28, 2007

Open House

This Sunday from 2:00 to 4:00 I am going to be holding an open house that I would like to invite you to. The address is 1040 Afton Road. Look at the link below for more information. I hope to see you there!


http://www.kingthompson.com/property/propertydetail.aspx?property=180e45e0-ddb7-4830-80fc-b4fd448cf1a5

Tuesday, September 25, 2007

FHA reform

The Senate Banking Committee passed legislation last week to reform the restrictions on FHA loans, making it even easier for home buyers to get an FHA loan instead of a riskier alternative. This would increase maximum loan amounts, which helps buyers who are looking in high-cost locations, but may have credit issues that prevent them from getting a conventional loan. The National Association of Realtors has been encouraging Congress to modernize FHA by increasing loan amounts and reducing or eliminating the required 3% down payment. We are now waiting for the House and the Senate to finalize this legislation and are hopeful that it will go into effect by the end of the year.

Wednesday, September 19, 2007

Fed Rate Cut

The Federal Reserve did something a little unexpected yesterday and cut interest rates by half a percentage point. A big problem in many markets was that houses just weren't affordable for the average person. Now, not only have the price of houses come down in many markets, but the payments are also more affordable because of the lower interest rates. This should make a big impact in helping people achieve their goals of home ownership. So, if you've been thinking about buying a home for a while, get out there and take advantage of the great prices and interest rates!

Monday, September 17, 2007

Lenders

The lenders have made mistakes. Some did not disclose to borrowers the full amount of a loan payment once the adjustable rate increased. Others did not verify the income or assets that borrowers stated that they had. This has caused borrowers to default on their loans and it's never a good thing to lose your house. However, the percentage may not be as big as what the media suggests. In an article by Ben Stein in The New York Times, he states, "The percentage of those who have defaulted is still fairly small, possibly 10 percent to 15 percent of subprime loans, and maybe less. (And subprime mortgages are very roughly 10 percent to 15 percent of mortgages.)" That means that there were a lot of less-qualified borrowers who are able to achieve their dream of home ownership because of subprime loans.

Friday, September 14, 2007

Mortgage Lending Implosion

Can you believe that 156 lenders have gone out of business since late 2006? They were funding risky loans that homeowners just couldn't afford to pay back. This emphasizes why you need to work with a reputable lender if you are thinking about buying a home. Make sure you speak with lenders who have been in business for a long time and who your Realtor recommends. All lenders offer very similar rates, so if you are quoted something that seems to be too good to be true, it probably is. To see a watch list where you can see which lenders are at risk of going out of business go to www.ml-implode.com.

Monday, September 10, 2007

first-time homebuyer class

This weekend I went to the first-time homebuyer class at Homes on the Hill (the one I mentioned in my last blog) and it was excellent to see how excited the students were about buying a home. They asked so many good questions and it was amazing. I think that's one of the reasons that I like working with first-time homebuyers so much. I really enjoy helping them through the process, teaching them what to expect along the way. In fact, I think that the real estate market in general changes so often that much of what I do is teaching and coaching my clients.

Thursday, September 6, 2007

Volunteering

Lately I've been thinking about ways that I can volunteer my time to help the community and also use some of my real estate expertise. I came up with the idea to volunteer at Homes on the Hill. They assist low to moderate income English and Spanish-speaking families achieve the dream of home ownership. They offer free first-time home buyer classes where they explain the entire process from start to finish by inviting the people who are involved, like lenders, inspectors, and Realtors to speak about what they do. So, I am going to be teaching there and I'm pretty excited about it!