3 Tips For Landing a Mortgage

Posted by Duke Rountree on

What is happening with todays current mortgages and how did we get there?

I can tell you one of my most challenging obstacles is financing. The banks/ lenders went from the “fog the mirror” loans to overly strict lending requirements. What is a “fog the mirror loan? Back in the good old days if you could breath and fog a mirror the bank would just ask how much you earned(which you did not have to verify, by the way) and the lender would qualify the loan based on no income verification or documentation. Simply qualify for the 0% first year months payments and it was yours. Now we have good people, with good jobs, money saved and finding it difficult to get a mortgage. I have even had buyers with enough cash to pay for a property outright to be told by the bank they could make the loan. If you are an entreprenur or private business owner good luck getting a decent mortgage.

What can you do to get a mortgage today?

Hope, Pray, Beg….. No not really but be prepared and shop around.

1.) High Credit Scores Count- surprise the lowest interest rates go to the ones with the highest credit scores of 760 or higher. Make sure you don’t open lines of credit or loans for at least 3 months prior to shopping for a loan. Also, try to pay off loan balances — “One large balance — even if it’s paid off at the end of the month — can ding your score by 20 points or more,” according to the article at Money Magazine.

2.) Gather plenty of quotes. Shop around, it can pay off big! Gather at least 6 quotes from lenders on rates because they can vary between lenders. Request quotes from local, regional and even online vendors like www.quikenloans.com or www.rpfunding.com. MOST IMPORTANTLY! Ask about the closing cost, they can vary from 2-3% of the loan amount.

3.) Lock in the Rate. When you chose the lender make sure to lock in the rate. During this period the lender agrees to not raise the rate within a certain time period. Make sure you check with your REALTOR and lender to verify how long the loan will take to close so you know how long to set the lock in rate for.

Lastly, ask for referrals to local professionals that can help. Ask ME! I have several preferred mortgage folks with different banks to serve your needs.

“Until Next Time”

Source: “For Your Customers:…” REALTOR Mag May 2, 2012 http://realtormag.realtor.org/daily-news/2012/04/30/for-your-customers-3-tips-for-landing-mortgage

Google New Patent Ad

Posted by Duke Rountree on

“Advertising Based on Environmental Conditions”

This is the goal of the newest Google patent that will use data gathered by smartphone sensors to target ads at users, PC World reports. Temperature can be gathered from the smartphone, web browser or search engine located  at the user’s site and obtain information on the environment including temp., humidity, light, sound and air composition.

Why would they care?

Example would be winter season comes and triggers ads for Local Heater & Repair companies and vice versa for warm climate or rainy climate. The patent will also allow Google to analyze background noise. Say you are at a concert and make a phone call, Google could be able to determine your taste and push ads for albums, tickets or musical equipment to the phone.

What Can You Do To Protect Yourself?

Well you don’t have to do anything now, because it is only a patent filed by Google. Google also assures us they will notify users if and when they implement the technology to protect your privacy by opting in or out. If you use Google products now you should always check your user setting to make sure you are not sharing information, you do not wish to share.

Happy Smartphone Surfing or Appling, Whichever You Prefer!

“Until Next Time”

Buy a Home, Get A Date! Or maybe even more….

Posted by Duke Rountree on

Did you ever think your home could be an aphrodisiac?

This is a funny story reported by CNNMoney was conducted with 1,000 single people with more than a third of women and 18% of men saying they would much rather date a homeowner rather than a renter. Only 2% of women and 3% of men preferred to date someone who rents compared to owners of their home.

62% Prefer to Date Singles Who Live Alone w/ No Roomate

What about boomerang kids(these are your adults who went off to college, graduated and then would up back in their old bedrooms.) It’s going to hard to find love, well maybe not from your parents, but less than 5% of all singles surveyed said they would date someone  living with their parents. “Thats a real deal breaker,” said Michael Corbett, of Trulia, “if your still living with your folks, your’re dead-on-arrival for dating.”

What does this ALL mean for you?

First, If you are single, Call, Text, Email or visit the www.OcalaRealtyOnline.com  to search for your next home. In today’s market, many times, it less expensive to own a home than to rent.

Second, a few benefits of homeownership; same monthly payment for life of loan(no more increased rent/lease), IRS mortgage interest deductions on your taxes, customize the home to your likings, not your landlords, and more likely to land a second date or possibly even more.

Third, call, text, or email me to find out about USDA(0% Down), FHA (3.5% Down), or if your a veteran apply for your VA(0% Down) benefits. We can help find you a loan to fit your needs and many times for less than first, last, and security. Don’t Wait the market is gaining steam and there are many choices between $50-$100k.

“Until Next Time”

 

By Les Christie @CNNMoney February 14, 2012: 5:30 AM ET

Why Are Foreclosures Dropping?

Posted by Duke Rountree on

Is Foreclosure Crisis Finally Fading?

According to research by CoreLogic foreclosures decreased by 8.4% or 130,000 in 2011. Mark Fleming, chief economist with CoreLogic, says “This is the first time in a year that REO sales (those bank-owned properties) have outpaced completed foreclosures.” There were 103 sales of bank owned homes for every 100 homes in foreclosure inventory in December 2011. Compared to November 2010 when there were 94 REO sales for every 100 in the foreclosure process.

Banks are also doing more loan modifications to prevent the foreclosure process. Banks are also encouraging the use of short sales to try and help reduce the number of foreclosure. Another reason could be banks are stricter with credit conditions and choosier about approving loan applicants, reserving approvals for mostly low-risk borrowers with low chance of default and foreclosure.

Does This Mean the End to High Foreclosure Rates?

In my opinion only time will tell. If you drive around any neighborhood in Ocala, Marion County there are still many many vacant homes unkept and due to hit the market in the future. The banks are taking their time in processing these foreclosures and we should see a steady dose of them to come for any years. There are simply to many homes vacant to say we are even close to seeing a huge drop in foreclosures.

However! Any Drop in Foreclosure Numbers is a GOOD Thing for Owners, Sellers and Neighborhoods.

The negative effects from foreclosures is far reaching and I believe the banks will soon realize it is better to work with existing struggling homeowners to refinance and reduce the principal amount owed, to qualifying homeowners, rather than short sale or foreclose. How does it make sense to remove homeowners, who are willing to stay and pay their mortgage. ONLY, to sell the property for less money to a new buyer. Can we not figure out a better way, for folks who can qualify and afford the home now at a much reduced value. Common sense is gone in today’s business world. I’M just Sayin!

“Until Next time”

 

 

Source: “Homes in Foreclosure Decline by 130,000,” CNNMoney (Feb. 8, 2012)

© Copyright 2012 INFORMATION, INC. Bethesda, MD (301) 215-4688

Your Cell Phone can Save Your Life? Huh?

Posted by Duke Rountree on

It’s an app that could possibly keep you safe or maybe even save your life! What would you do if you were walking alone at night and see someone following you. If you dial 911, it can take up to 6 minutes for the police to track your location because they MUST get permission. That 6 minutes could make a huge difference in the safety of your well being.

StreetSafe was invented eliminate the time it takes for 911 services to respond. it uses GPS tracking and relays your position to the authorities, and transmits your identification information to the authorities age, physical description, etc.

How Does it work?

If you slide the red button, StreetSafe silently contacts your local 911. If your in danger, keep your finger on the red alarm button and tuck it in your pocket, if you slide the green button, your immediately connected to a call center staffed by trained safety advisors and off-duty police officers. This “green” button feature sets them apart because it allows users to talk with experts on safety tips before things get too serious.

What About Privacy?

Creator Tom Rissman of StreetSafe says the app is not a tracking device others can use against you. “Our information is kept solely to us and shared with the police and ONLY the police” in case of emergency, he said.

Cost?

Either $19.99 per month or save a few bucks and go for the one year subscription for $149.99 and includes the security service. visit www.streetsafe.com for more details.

“Until Next Time”

1 Million Homeowners May Get Mortgage Write-Downs

Posted by Duke Rountree on

Housing and Urban Development Secretary says about 1 million homeowners would get write-downs in the size of their mortgages under a proposed deal with banks over shady foreclosure practices and it could be reached in a few weeks. Using Donovan’s estimate, the settlement could provide a reduction of about $20k for each of the 1 million borrowers.

Prior efforts to jump-start the housing recovery have fallen short of how they were promoted. “Principal reduction can have a substantial impact on the housing market nationally,” Donovan said.

National decline in values hovers around 30% with Ocala, Marion County closer to 50% reduction in values since the boom times of 2004. Reports also show about 22 percent of U.S. homes have negative equity totaling about $750 billion, according to Core Logic.

Note: Any settlement would not apply to mortgages owned by Fannie Mae or Freddie Mac, which together  own or guarantee most of the U.S. mortgage  market. The reason is the cost to the taxpayers compared to other options. The White House will also lay out plans to convert foreclosure into rentals and start “Project Rebuild”, part of Obama’s American Jobs Act that aims to have construction workers rehab vacant properties. The estimated cost of $15 billion would creat 200,00 jobs and used to renovate thousands of vacant homes and properties nationwide.

Copyright © 2012 washingtonpost.com, Margaret Chadbourn; Aruna Viswanatha

In my opinion this will do little to help the housing arket nationwide but especially here in Marion County. The focus should be on banks and lending institutions to loosen lending practices. I do not think everyone who applies should get a mortgage, as has happened in the past(fog the mirror loans!!LOL) However, the challenges many good homebuyers face with banks is the largest problem. Credit score standards and income are to strict and oversight is needed to make loans more available to good borrowers.

“Until Next Time”

 

Are You Using Online Back-Up or Cloud Computing, Yet?

Posted by Duke Rountree on

If you have not checked out Google Apps, Apples iCloud or Microsofts Cloud it may be time to learn more?

First, What is Cloud Computing?

Cloud computing is the delivery of computing as a service rather than a product, whereby shared resources, software, and information are provided to computers and other devices as a metered service over a network (typically the Internet). This is a Wikipedia answer and a little confusing. It is simply using services, instead of programs(products) installed on your computer for your files, photos, videos, music and anything else you want to store.

Second, Why use Cloud Computing?

It is less expensive than on-line back up companies such as www.mozy.com or www.carbonite.com, which I have used both and they provide good services. These services range from $60 per year to upwards of couple hundred $$ and they only back up your data once a day. With “the Google cloud” it saves in real time as you work and integrates all of your tools(email, docs, pictures, calender, etc.) in one simple place. Plus you can access it from anywhere with an internet connection.

Third, What about Cost?

I recently upgraded my google account to 20GB od storage and it cost me a whooping $5.00. I have now saved 10,000 files, 500 songs, and thousands of pictures to my account. FOR ONLY $5.00

I have been using the free google apps applications for some time and recently decided to switch to google business apps. What does this mean and why does it matter? With Google Business Apps my yearly fee for all services is $50.00 per year and there is no need for any IT personnel. And, when I travel or visit family, I can share or access anything I need, all the time!

It can simplify your life in the computer world!

If I can help or answer any questions, please feel free to send me a text, email, or find me on the web.

“Until Next Time”

 

Shorts Sale and Foreclosure SOLD in 2013 Could Owe Federal Income Taxes

Posted by Duke Rountree on

Are You Thinking About Trying to Sell Your Home via Short Sale or Considering Walking Away?

Uncle Sam is still giving homeowners until Dec. 31st 2012, to go through the short sale or foreclosure without tax consequences-AS LONG AS THE LENDER RELEASES THE DEBT. But on January 1, 2013 the rules change: The amount the lender forgives, for either short sale or foreclosure, on primary residence will be taxable on federal income taxes.

Example: If a house sold $50,000 short of what is owed on the mortgage, then the selling homeowners will owe federal income taxes on that $50,000. Homeowners would owe $12,500 if they’re in the 25 percent bracket; $7,500 if in the 15 percent tax section. Homeowners would be on the hook even if the house sold but the bank had not formally forgiven the loan in a letter: THE BANKS MUST OFFICIALLY SIGN OFF IN WRITING BEFORE DEC. 31, 2012

Homeowners declaring bankruptcy could escape paying income taxes on any cancellation of debt income if the debt is forgiven in the bankruptcy even if the debtor is solvent, said Nick Jovanovich, a board certified tax attorney in Fort Lauderdale, FL..

In Short…

Homeowners should decided sooner than later this year to begin whichever process they chose to avoid the tax law changes coming in 2013. Short sales can takes months to years depending on lender, type of mortgage, market activity and many other variables. Contact a local REALTOR for more information on the services they can provide to assist in your decision.

Some major lenders are offering quicker short sale programs as an alternative to foreclosure. Owners benefit from reduced documentation and smoother processing.

In some cases, owners may be eligible for cash incentives from a couple thousand dollars to upwards of $30,000.

“Until Next Time”

Florida Housing Market Bouncing Back….

Posted by Duke Rountree on

Florida Housing Market Bouncing Back….

Florida’s real estate market is entering 2012 on an upward trend, according to three leading U.S. economists. Florida Realtors Chief Economist Dr. John Tuccillo says, “Our sate is in a mini-recovery” and “sales are trending up, listing inventories have fallen, the supply of lender-related properties has stabalized, and we are seeing multiple offers on home in some local markets.”

In Fact…

Dr. Tuccillo says homes in Florida may be undervalued. “That may sound like a drastic statement,” he said. ” But a buyer who plans to own the home for 5-7 years can get some great bargains today.” Interesting statistic from South Florida I heard yesterday said at one point Miami had 9 years worth of inventory, now with decreased number of homes on the market and high buyer activity has dropped that number to less than one year. The South Florida economy is growing  based on relationships with Latin America and the Carribbean. Dr. Lawrence Yun says, “Don’t be surprised to see a gain in home prices in the Miami and Naples markets in the next 18 months.””From there, the recovery is likely to roll northward to Central Florida and then North Florida.”International buyers are driving the market in South Florida and other areas of the state.”

What about Ocala….

We are seeing positive signs locally including a drop in unemployment and reduced housing inventory. Banks are slowly releasing foreclosed/REO homes on the market and this is creating a negotiating competition between buyers. Many of the more inexpensive homes are only on the market for 1-2 weeks. We are still facing challenges getting buyers qualified for financing, however with the USDA loan programs and FHA there is great opportunity. Another key factor is the high price for rentals and availability. In todays market you can buy a home for the same or lower than you can rent. The benefits of buying to renting can create tax benefits, provide stability because there is no landlord who can ever raise your rent or sell the home without your approval.

If you are interested in receiving a monthly “Market Trend Report” please call, text, or email me anytime.

“Until Next Time”

Mortgage Applications Soar / December 2011

Posted by Duke Rountree on

12.8 % Increase in Mortgage Applications

There is large jump for 2 reasons. The first is consumers are taking advantage of historically low interest rates hovering in the 4% range. Second is the affordability of residential homes in Ocala, Belleview, Dunnellon, Salt Spring, Fort McCoy, Sparr, Anthony, Citra and several other areas.  Mortgage application can be a future gauge of home buying reported by Mortgage Bankers Association report for the week ending Dec. 2. Applications jumped 8. % from a week earlier while refinance soared to 15.3 %.

The reports  states 85.5 % were for fixed-rate 30 year loans.

“Coming out of the Thanksgiving holiday, applications increased significantly as mortgage rates dropped to their lowest levels in about two months,” Michael Fratantoni, MBA vice president of research and economics, said in a statement. “In particular, refinance applications increased sharply, with some lenders seeing refinance volume double. Despite this surge, aggregate refinance activity is still below levels reported two weeks ago. Some lenders indicated they are beginning to see an increase in HARP loans, but that increase is still a small portion of the move this week.”

Source: “Mortgage Applications Jump 12.8% as Refinancing Volume Soars,” HousingWire (Dec. 7, 2011)

“Until Next Time”