True Tales of Central Texas Real Estate - CEDAR PARK edition

What affects credit scores? Seven Misconceptions

2011-11-15T13:57:00.002-06:00

If you’re trying to raise your credit score to get a good rate for a refinance, you might be surprised by what affects—or doesn’t affect—your score.

More money improves your credit score.

False. Your level or sources of income don’t affect your credit score, although lenders may look at it when making loan decisions, according to the Fair Isaac Corp., the company that issues the commonly used FICO credit scores.

Ownership of several credit cards can hurt your credit score.

Mostly false. Having many credit lines isn’t necessarily a bad thing. Multiple lines give you a favorable debt-to-available-credit ratio. But use them correctly: It’s best to keep any balances below 10% or 20% of the total credit line. Anything more will affect the ratio of debt-to-available-credit, which can decrease your credit score.

Opening and closing credit lines can hurt your credit score.

True. New credit applications can decrease your credit score, so be careful about applying for new credit cards or personal loans before applying for a second mortgage, automobile loan, or other large line of credit.

Consolidating credit lines will help your credit score.

Mostly false. Although it may seem like a good idea to move all your balances to one card, that can actually hurt your credit score, since your debt-to-available-credit ratio will spike on that card.

Changing jobs can hurt your credit score.

Partly true. Taking a new job or losing your job doesn’t affect your credit score. However, if you have a spotty employment history, lenders may hold that against you in making a loan.

Co-signing for others can hurt your credit score.

Partly true. Simply co-signing on a loan for someone else may not affect your score, but if that person is late on paying the loan, it’s likely to show up on your report. And that’s a nasty surprise if you didn’t know the person was late.

Judgments and liens aren’t considered in your credit score.

False. If you’ve had a judgment or lien filed against you, it’s considered in your payment history, which represents 35% of your score.

Similarly, while most utility companies don’t report payment history to credit bureaus, your account will likely be reported if it is seriously delinquent and referred to a collection agency.

Do you have additional questions? Contact me and we can discuss your specific situation and what can be done to raise your credit to refinance!

Short Sales 101

2011-11-01T13:55:00.001-05:00

A short sale is when the lender accepts a lower mortgage payoff from a seller because the homeowner owes more than the home is currently worth. They’re notoriously complicated to complete (unless you are dealing with a professional), but with more and more Americans underwater on their mortgages, they may be getting a closer look by lenders.

“We’re starting to see that servicers and lenders are viewing short sales as a better alternative than they had in the past,” said Daren Blomquist, spokesman for RealtyTrac, an online marketplace for foreclosures. “Some of that relates to the fact that it’s getting harder to foreclose. There are additional requirements in terms of paperwork and requirements that states and judges are imposing.”

Short sales are gradually rising. This year, short sales are making up about 8% of total home sales, up from 7% in 2010, 5.5% in 2009 and 3% in 2008, said Mark Fleming, chief economist of CoreLogic, a provider of housing market data.

“Short sales are sometimes referred to as a kinder, gentler foreclosure,” Fleming said. “Borrowers never get evicted, you never have the vacancy issue for the home, so it’s good for the market around it.”

Short sales also typically sell at less of a discount than foreclosures, and many say that a short sale is much less damaging to a homeowner’s credit than a foreclosure.

But often a short sale can’t be completed in a snap.

“In general, it is a totally different type of transaction. You’re not only selling a house, you’re negotiating debt. This is why working with an agent that has specific short sale experience is helpful,” said Jeff Osborne, Broker, RE/MAX Capital City.

Selling via short sale

To qualify for a short sale, there has to be some sort of homeowner hardship that makes it impossible to continue making payments, Osborne said. A big misconception is that you can attempt a short sale simply because you’re underwater, he said.

A homeowner interested in this approach should first be in contact with a qualified real estate agent and a real estate attorney, he said. Often, listing the home is the first step, but the bank also should be contacted at the start to request a short sale package, Osborne said.

You definitely want to enlist the help of a real estate agent who deals with short sales on a regular basis, since they’ll have more experience in dealing with lenders through the process. At RE/MAX Capital City many of the agents are experienced in dealing with short sales and also carry the CDPE (Certified Distressed Property Expert) designation.

Then prepare for a process that could take awhile.

However, others that have gone through the short sale process with a RE/MAX Capital City agent say it’s worth it. Your credit score may take a hit, but rebuilding it without a foreclosure will be much easier.

If you know someone that may be contemplating a short sale, do them a favor and put them in contact with me, a professional real estate agent that knows how to navigate the complexities of a short

Austin Home Prices Projected to rise 0.9%

2011-09-15T10:39:00.002-05:00

Austin home prices are projected to grow 0.9 percent next year, according to the latest Fiserv Case-Shiller Home Price Index.

These same projections show Austin home prices rising 0.9 percent by spring 2012 and another 0.3 percent from first quarter 2012 to first quarter 2013.

Zero Down Loan Programs

2011-09-01T10:31:00.003-05:00

A lot of people are under the impression that the days of a $0 Down Loan are over. Well, I’m here to tell you they are not!

$0 Down Loans can be a great option for many people. What you need to do is consider the Pros and Cons for each type of loan or program and determine if it makes sense for you and your specific situation. If you would like to get additional information or just discuss your options, contact me and I can put you in touch with a reputable loan officer who can explain these loans/programs in greater detail.

Let’s break down some of those Pros and Cons of a few different types of $0 Down Loans and Programs!

USDA Loans

Pros:

· $0 Down payment

· No monthly Mortgage Insurance (MI) – however this is changing October 1, 2011

· Credit Scores down to 620

· Ratios as high as 54% (this is on a case by case basis)

· Easy to qualify for

· DO NOT have to be a first time buyer!!

Cons:

· There is an upfront funding fee (currently at 3.6%)

· Geographically restrictive (wondering if a home is in a USDA location? Call or email and I can look it up!)

· There are income limits – this can be tricky because everyone who lives at the property (parents, adult children, etc.), their income is included in this

VA Loans – Returning Service Men and Women from Overseas

Pros:

· $0 Down payment

· No monthly MI

· Credit Scores down to 620

· Ratios as high as 56% (this is on a case by case basis)

· Easy to qualify for

· DO NOT have to be a first time buyer

· NOT geographically restrictive

· NO income limits

· Max loan amount $417K

Cons:

· There is an upfront funding fee

· Must be VA Eligible

MCC – Mortgage Credit Certificate (Bond Program)

Pros:

· You can use this with FHA, Conventional, and VA loans

· Can help in qualifying for a loan

· Reduces Federal Income Tax liability yearly based on amount paid in interest on mortgage loan

Cons:

· There are income limits

· Cannot be used in conjunction with other Bond programs (ex. the Bond 77 program)

· Does not reduce mortgage payment

· You may be subject to a Recapture tax

NOTE: this is not a tax credit

Bond 77

Pros:

· There are no geographic restrictions

· DO NOT have to be a first time buyer (targeted areas only, check in with me to see if an area qualifies)

· Provides down payment assistance

· You can use this program with FHA, Conventional, VA, and USDA loans

Cons:

· There are sales price limits

· There are income limits – this can be tricky because everyone who lives at the property (parents, adult children, etc.), their income is included in this

· You may be subject to a Recapture tax

· You must complete a pre-purchase homebuyer education course

J.D. Power Ranks RE/MAX #1 in Customer Satisfaction for Buyers and Sellers

2011-08-29T10:39:00.000-05:00

Results from the J.D. Power and Associates 2011 Home Buyer/Seller StudySM, recognize RE/MAX for providing the highest overall consumer satisfaction for both home buyers and home sellers. In last year’s study, two different companies ranked the highest in each category, but this year home buyers and sellers both rated RE/MAX the highest.

“It all comes down to professionalism and a commitment to a premier level of customer service,” said RE/MAX Chairman and Co-Founder Dave Liniger. “Because RE/MAX agents average more experience and training than other agents, they are better prepared to deal with home buyers and sellers in any kind of market. And, consumer preferences tell the story . . . nobody sells more real estate than
RE/MAX.”

This is the fourth annual study of home buyer and seller satisfaction with the largest national real estate companies, conducted by J.D. Power and Associates. For the home buying experience, three factors were considered: agent/salesperson, office and a variety of additional services. Four factors were examined for the home-selling experience: agent/salesperson, marketing, office and a variety of additional services.

As a full-time, professional RE/MAX Capital City Agent, I am proud to know that our customers appreciate all we do for them.

If you or someone you know is looking to buy or sell I would love the opportunity to speak with them.

3 ways to save on home costs

2011-08-15T09:34:00.004-05:00

1. Negotiate on repairs and upkeep

Price trend: Contractors, still facing a slumping real estate market, will strike a deal to get your business. In a May survey by consumer review website Angie's List, 81% of contractors say they'd negotiate labor costs; more than a quarter say they'd drop prices by more than 10%. Service providers like house cleaners and landscapers are cutting rates, too.

How to save: Get multiple price quotes. You'll have the most bargaining power if you can be flexible about the timing of your project. If a builder won't drop his price, see whether he'll upgrade you to higher-end fixtures, says Steve Gonzalez, author of "Before You Hire a Contractor: A Construction Guidebook for Consumers."

And don’t forget as your Real Estate Agent I can give you recommendations on great contractors to hire, or point you in the right direction. Just give me a call!

2. Trim the cost of borrowing

Price trend: The average rate on a 30-year mortgage was 4.7% in May, down from 5.1% in February; it's expected to hit 5.8% next year, says the Mortgage Bankers Association. Some borrowers will pay more even sooner when jumbo loan limits expire this fall.

How to save: The recent rate dip has opened up another refinancing window. To save on closing costs, request a good-faith estimate before you apply. You can negotiate any fees the lender charges. You'll have the most wiggle room on adjustable-rate and jumbo mortgages. Need to find a reliable lender? Just give me, your Real Estate Agent, a call and I can recommend someone to you!

3. Get a deal on furniture

Price trend: Higher shipping and materials costs are pushing furniture prices up, says Kimberly Causey, author of "The Furniture Factory Outlet Guide."

How to save: When sales slow in the summer, many mom-and-pop shops will make deals to move inventory, says Causey. Ask for 20% off, and don't settle for less than 10%. Gently used floor models can go for 25% off. Sign up for e-mails from furniture shopping sites like Decorati.com and OneKingsLane.com, where a $2,970 Noir brand sofa recently sold for $1,499

http://money.cnn.com/2011/06/22/pf/home_repair_savings.moneymag/index.htm

Getting Settled In Your New Home

2011-08-05T09:33:00.000-05:00

Relocating to a new community involves a lot of planning and attention to detail. Much attention goes into getting moved out, but getting moved in is just as important. Here are some of the things you’ll want to do once you arrive at your new home:

# 1: Unpack the essentials
With a little planning you can create an “open first” box or two that will have your essentials for the first few days. If you’re not moving everything yourself, plan for the possibility of arriving before your stuff does. Toiletries, medicine, a few changes of clothes, and basic kitchen items (such as a can opener, wooden spoon, cutting knife, one pot and one pan) are good examples of must-have items.

# 2: Help your pets acclimate
A move can leave pets excited and scared. If possible do not leave them unattended in the yard. Staying in their presence will be calming and lessens the chance of runaways.

# 3: Get the kids settled
If your things have arrived, help each child set up their bed and unpack one box of toys. Otherwise, get them excited about “camping” in their new home. Make sure you have a bag with their few favorite toys, or for teens and pre-teens some CD’s and books or magazines.

# 4: Go to the grocery store
Consider eating out the first night, and buy essential groceries on the way home. Focus on easy-to-make foods and quick snack items. Buy any cleaning supplies that you need (most chemicals should not be transported anyway). If you have a pet, buy any food and supplies not already in your “essentials” box.

# 5: Cover the windows
If your home doesn’t yet have the proper window coverings, hang sheets up to add privacy and security.

# 6: Set a finish line
Make a list specifying the order in which you will unpack and complete other moving-in tasks. Creating a time frame in advance will help keep you from feeling overwhelmed.

# 7: Get the lay of the land
Walk through your new home to check the heating, air conditioning, and electricity, as well as all appliances. Take your family on a walk through the neighborhood to learn your surroundings, and if possible meet your neighbors.

Need help navigating your new neighborhood? As your Real Estate Agent I can help you find all the essentials you need, just call, email, or text!

A Great Day for Texas Real Estate!

2011-02-24T08:00:00.001-06:00

Why, you ask? Well, today there are a host of events taking place to support TREPAC. That is the Texas Real Estate political action committee. Now, many of you are probably either rolling your eyes or considering deleting this post. I don't blame you....with the current events in Wisconsin, Ohio, and other states with political rallies, the idea of supporting a PAC can be a sour subject. However, think of this. Which state is fairing the best in the real estate industry today? TEXAS. Why? TREPAC and the Realtor Party actions. We work closely with state legislators and the Governor to ensure that our industry is protected from unfair regulation and taxation.

Want to learn more? If you are a member of the Fort Hood Area Association of REALTORS, come to your luncheon today. I'll be there speaking! If you are a member of the Williamson County Association of REALTORS, come to Mel's in Georgetown today at 2pm for a fun afternoon of bowling, silent auction, and education. If you a member of the Austin Board of REALTORS, come to the annual Chili Cook Off tonight! Lots of great opportunities to learn more about TREPAC and invest....TREPAC is a small insurance policy to protect your business every year.

Gotta run.....

Changes coming to FHA Loans!!

2011-02-16T08:54:00.002-06:00

Thought you might want a heads up on some changes announced today by HUD. Effective on all HUD case numbers pulled after April 18th, 2011 they are increasing their monthly MI factor by 25basis points. That equates to a $45 increase per month on a purchase price of 225k.

Last week the Obama Administration released their plan on the future of housing finance. They are uncomfortable with the current levels of government backed financing and want to reduce their exposure in the market in the future (5-8 years). Currently their market share is about 95% of all residential loans financed. ( I am including FNMA in on this as they are basically “owned” by the fed now )

This HUD decision is in my opinion one of the first of many that will serve to disincentives borrowers from doing FHA loans with government backed MI and incentives them to use conventional financing with private mortgage insurance by making the private mortgage insurance companies more affordable.

Source: John McClellan, Branch Manager, Supreme Lending Austin

So impressed with Cedar Park schools!

2011-02-16T08:51:00.000-06:00

The majority of my clients need information on Cedar Park area (Leander ISD) schools. There are great resources to find information on schools, ratings, test scores, demographics, etc., and I provide those information sources to clients. However, my children attended a local Catholic school until last year. We had a wonderful experience with our Catholic school, but we decided to transition to Cypress Elementary and Cedar Park Middle School. What a WONDERFUL decision! Last night we attended the 8th grade portfolio event where our son shared information about his classes and identified areas where he could self-reflect and improve. I was so impressed with the process, the feedback and interaction with the teachers, friendly staff, and great classroom resources. Yep, just another reason (in case you needed one) to live in CEDAR PARK! Enjoy the day!

Cedar Park! Cedar Park!

2011-02-10T21:02:00.000-06:00

Why all the excitement? Cedar Park was recently named one of the state's top "safe cities"...quite an honor. Big thanks to our fantastic Cedar Park Police Department. As a REALTOR, I see them all the time (luckily not in the immediate rear-view mirror!) and the officers are always friendly and professional. As a former peace officer myself, visibility is the key and CPPD has that covered! The observation is just another reason, in case we need another, to call Cedar Park Texas HOME. Want to learn more? Visit cgliving.net and start your home search today....I'm here to help!

I'm baacckk!

2011-02-10T13:39:00.002-06:00

Wow. Life takes over and you suddenly realize that I have so much to say but haven't blogged about in....embarrassing.....months. That flies in the face of everything techies tell you. You must blog every day, maybe more than once, maybe less. The other part they never tell you that "life happens". And for me, life's been really good. Business has been really good. Family is really good. In fact, things in Cedar Park are really good. And that's what I'll be sharing for a while...more true tales of Central Texas real estate with the flavor and spice of my favorite part of Central Texas....CEDAR PARK!

Real Estate professional teams

2010-07-26T13:56:00.002-05:00

In a wild-and-crazy market, the importance of the real estate team that you have work for you is critical. The transaction work goes far beyond your REALTOR. As an example, I have a team of professionals - a full time transaction manager, title company staff, lenders, insurance agents, home warranty professionals, appraisers, surveyors, home inspectors and others who have to be orchestrated to make a deal reach the closing table. Realtors are more than just agents to prepare documents, we are orchestra conductors - making sure that each piece of the complicated real estate puzzle fits together just right. Okay, okay....reality check! Sometimes it's really like herding cats!!! :)

BlogCatalog!!

2010-07-25T18:04:00.003-05:00

What exciting news here at CG Living....we have been accepted at BlogCatalog to reach more and more people. We know that people are hungry for Central Texas real estate market information, but this blog goes beyond that. We share stories....real stories...about experiences in buying and selling real estate that will allow the reader to dabble in the market and then enter as an informed, prepared buyer or seller. Enjoy - feedback is welcomed and encouraged!!!

Delay in blogging = busy month!

2010-07-24T10:00:00.002-05:00

Nearly every day, whether I am at the office, at the pool or out running errands, I am asked, "How's the market?" I always smile and say "GREAT!" but now it is followed up by a another word...."interesting". We are really feeling the affects of the now-gone tax credit on the market. We are seeing homes listed under $150-160K moving much slower. Some properties are not even getting many showings! But higher price points, say $250K and up, seem to be moving quite nicely. That leads me to believe that many first time homebuyers are no longer in the game actively. However, if you are one of those buyers, you are CRAZY not to buy a home now. Did you know that with good credit you can get a loan near 4%?! That's like FREE MONEY!! There are great lending options out there for those with great credit. Even if your credit is not-so-stellar, there is a new program out there called Bond 77. I tell you...historically this is an amazing time to buy. Low rates, great inventory, motivated sellers. Get in the "interestingly great" market now!

True Tales - Everyone's needs are different

2010-07-01T16:01:00.002-05:00

One thing is true in real estate - no two days are alike! I would argue no two days, hours, homes, clients, goals, needs are alike. We have to work effectively, professionally, and ethically with multiple "bosses" if you will. My job is to make YOUR real estate goals and dreams come true. I work hard to listen to each client carefully and make sure my service is meeting those needs. Some days are easier than others.....

True Tales - Still options out there for Home Buyers!

2010-05-22T17:04:00.003-05:00

Thought all was lost after the April 30 deadline for the "first time homebuyer tax credit?" So many people treated the end of that incentive like the Y2K experience of 10 years ago! Well, good news - it is still an awesome time to buy property, especially in TEXAS!! Here is one reason why -

The TDHCA Texas Homeownership Division is pleased to announce the release of $500 million in mortgage loan funds through the Texas First Time Homebuyer Program. It is anticipated this will help to open the door to homeownership for many low to moderate income homebuyers. Interest rates on these 30-year, fixed-rate mortgage loans will vary depending on the type of loan selected by the borrower. Two types of loans will be available under the program; assisted loans (currently 5.74%), which offer down payment and closing cost assistance up to 5% of the mortgage amount in the form of a 30-year repayable second lien; and unassisted loans (currently 4.99%), with no additional funds for down payment and closing cost assistance.

Interested in learning more about the program? Visit the program website www.MyFirstTexasHome.com or contact one of their area participating lenders.

See, the glass is ALWAYS half FULL!!!

True Tales: A Step Beyond

2010-05-20T10:56:00.002-05:00

You never know....I have a dear client who has gone to New York state to care for her elderly mother. Her property is currently listed with me. By the way, the property is a fabulous condo in Twin Creeks....you should check it out on my website, www.cgliving.net. Anyway, she realized she left something important behind and needed my help. Of course! I could not find the item she needed in her house, but I went to a local store, found the item, purchased it, and shipped it to her in New York.

I reason for sharing this brief story is to express that REALTORS, the good ones, do a lot more for our clients that just put a sign and a lockbox at the property, stick it in MLS and hope it sells with no real contact with the owner. The good agents actually CARE for their clients and are ready to help a person in need - no matter what.

True Tales: What Else does your REALTOR do?

2010-05-20T10:53:00.002-05:00

What a busy week - lots happening in Central Texas real estate. One of the things that I enjoy about my profession is the ability to give back to the industry. I serve on the Williamson County (Texas, of course, not Tennessee) Association of REALTORS Board of Directors. I am in my third year of service, and this year I am the Association's Treasurer. WCAOR is a fantastic organization whose mission is to serve agents in our area with education classes, networking opportunities, fun events, and business tools to be successful, ethical and informed REALTORS. Sure this role takes time and earns me no money, but it is so worth it. The partnerships I form make for easy business transactions for my clients! What else does your REALTOR do to give back?

True Tales - Leasing Process

2010-05-15T13:41:00.002-05:00

Okay, so I don't do a lot of leasing, but I do handle lease listings and applications for my dearest clients and referrals. Right now, the leasing market in the Austin area is so HOT is it CRAZY!!! Literally homes are leasing in less than 3 days, sometimes the same day they go active. If there was ever a time to buy INVESTMENT PROPERTIES, this is it!!! Catch a deal on a house, get it ready to lease, price it well, and you'll have income, if you play your cards right. I have a terrific spreadsheet that I use for my clients to see if a home and area meets the right numbers. Want more info? Contact me!!

True Tales - Shopping in the Rain!

2010-05-14T20:13:00.002-05:00

What a day today....great time with a dear client and her best friend from Bryan, TX. We shopped for homes despite sometimes some major downpours of rain. Sellers: remember to offer shoe covers or place signs on the front door to remind everyone to remove their shoes. We took our shoes off at EVERY home where it was really wet outside.

On a lighter note - we visited a home with a charming man inside who is moving out of the country. We were all kinda hungry and he had just cooked lunch. I think we were all thinking...."Humm, wonder if there are any leftovers?" because it smelled GREAT. One of us said, "That curry dish just smells amazing!". To which he said, "I just cooked Italian!". Well, maybe a secret ingredient in his pasta sauce is curry! No offense intended at all....but we really agree that we all smelled yummy curry! No matter what it was, I wish I had the recipe! :)

Second Edition: True Tales of Central Texas Real Estat

2010-05-13T16:03:00.000-05:00

As REALTORS, we have to be the conductor orchestrating sometimes dozens of professionals to make a deal close. This includes the precious client, the hopefully precious lender, title company staff, inspectors, appraisers, insurance agents....the list goes on. Did you know that many transaction management check lists involve nearly 30 steps and checkpoints just to get a contract executed? That is just to cover the basics.... and doesn't include anything that the lender has to do!

So, here is an example. I am working with clients right now to purchase a HUD foreclosure. Believe me, the home is awesome...about three years old, great neighborhood, close to an elementary school, on a culdesac....the list goes on and on. Unfortunately the previous family could not maintain the payments. So, it landed in HUD's lap.

That's where the fun begins....the contract itself was simple enough. But then you can look forward to over 50 pages of closing docs that have layers upon layers of "to do" items. Don't you dare miss a signature, misspell something, or miss a date. You'll go to the bottom of the stack! The client only sees maybe less than 10% of the total paperwork, but we see it all! More to follow.....

First Edition of "True Tales of Central Texas Real Estate"

2010-05-13T16:01:00.001-05:00

Ever wonder what really happens with a real estate transaction? Behind the scenes information and hilarious (well, that may be one way to describe it) stories that makes up a real estate deal? I will share, while keeping identities private and not violating the Code of Ethics, some insight into the behind the scenes action in real estate. It should be fun!