Oregon is the best

I am so fortunate to live in the Willamette Valley, Oregon has everything!

New year, back to the basics

As we start a new year with new goals and determination let's remember the basics.  Honest communication and the best long term results for our clients. Those two goals will make a successful 2013.

Rates January 22, 2013

This morning’s Conventional FIXED  rate quotes are:

30 Year 3.75% (3.909% APR)

15 Year 3.0% (3.279% APR)

*These rates are available for an 80% LTV purchase or rate/term refinance transaction with a 740+ FICO

score and loan amount between $125,000 - $417,000 based upon a 1% Origination Fee and 45 day lock using approved lenders and subject to loan approval.


This morning’s Government FIXED rate quotes are:

FHA 30 Year 3.25% (4.275% APR)

VA 30 Year 3.25% (3.596% APR)

USDA 30 Year 3.25% (3.587% APR)

*These rates are available with a 660 minimum fico score, based on a 1% Origination fee and 45 day lock using approved lenders and subject to loan approval

Housing Market Heating Up

Check out the article in Oregon Live.  I have seen quite a change recently with multiple offers in the Quad County (Multnomah, Washington, Clackamas and Yamhill) area.  Is this the beginning of a rebound?

Portland-area home prices are rising- good news for the housing market! http://www.oregonlive.com/front-porch/index.ssf/2012/07/portland_home_prices_up_33_per.html


Portland home prices up 3.3% in June, Clear Capital says

www.oregonlive.com

Of the month's sales in the metro area, 18.3 percent were bank-owned properties...

Three year olds

I just spent a week with my great nephew Jeremiah and I realized that he is much smarter than me.  He can use his mothers phone to watch cartoons, he can turn her IPAD on and off, find Netflix and watch Oscar - whatever that is.  He can turn on the charm to keep out of trouble and I watched cartoons each morning, so obviously he is in control as well.  It is unbelieveable to me what he knows as far as  the tech world.  I cannot imagine what he will know when he hits the work place.

MULTIPLE OFFERS - MAKE YOUR BEST OFFER

First I just want to say that I am not trying to push anyone, however, I have had 5  borrowers who have been up against multiple offers - and they lost that house.  So my recomendation is to make your best offer if you really want that particular house.  Use your professional realtors expertise and make an offer that makes sense.  With rates this low you will be getting a terrific longterm investment and more important a home that will be filled with memories.

Camping in Oregon

We have the best camping in the world - ok nation.  We have county parks, state parks and national parks.  My favorite is the State parks with hot showers, electricity at the sites and indoor plumbing.

Starting May 1st, they are launching a new service for online customers that can help you get the camping trip you want. You can set up a special alert that will email you when a park, campground loop, or individual site becomes available. It won't hold the site for you, but it will save you the time & inconvenience of repeatedly going online to check to see what's open.

Here's how it works: A "Create Availability Notification" Link will be displayed above the campsite search results when no matching sites are available for your dates. You may create as many notifications as you need and can manage them through your account on Reserve America’s website.

If you any questions about this added service, please contact Reservations Northwest at 1-800-452-5687, Monday through Friday from 8am to 5pm.

LIFE AFTER SHORT SALES

We have all been wondering what happens after a short sale.  How long do we need to wait to purchase a new home? 

My disclaimer would be that each case will be different and until we see the credit report and other documentation we cannot know if the borrower qualifies.

FHA GUIDELINES – as of January 2012

Short sales:

Short sale (mortgage was current at the time of recording/closing on a short sale):

No seasoning is required, if all payments on the mortgage and all other installment debt

were made within the month due for the 12 months preceding the short sale.  

Regardless of the type of short sale, the borrower is ineligible for financing if the short sale occurred so that the borrower could:

• take advantage of declining market conditions, and

• purchase, at a reduced price, a similar or superior property within a reasonable

commuting distance

Short sale (mortgage was in default):

The short sale must have been completed at least 36 months prior to the application date.

An exception may be available if default was due to extenuating circumstances beyond

the borrower's control.  Case by case – manual underwriter decision

• If the loan that was paid off was FHA-insured, the completion date is the date the

claim was paid to the short sale lender.

FHA loans require 3.5% down.  Down payment can be gift funds from a relative.  Seller may pay up to 6% of the sale price towards closing costs and pre-paid fees.

RUMORS

RUMOR – The only loans available are 80% LTV with a credit score of 720 and above. There has been some talk over the past couple of years that this is where we were headed, but the head of Freddie Mac said recently that the loans that are coming in now are very good quality and this is helping their portfolio.

FACT
CONVENTIONAL FINANCING is actually loosening up a little. We have 95% Conventional loans with mortgage insurance – of course. If the home is a HomePath home (www.homepath.com) your buyer can get in at 97% LTV, with no appraisal fee and seller contributing to the closing costs.

GOVERNMENT LOANS - 100% financing is available through USDA (available in any town 25,000 or less) and VA and FHA is going strong with 3.5% down.

It is true we are asking for documentation for all income and assets but we should have been asking for that all along. And I am conservative. I will not get you into a loan that is not good for you in the long term. We are underwriting by the 4 C’s – Credit – Are the borrower’s credit worthy? Capacity - Can they afford the payment? Capitol – Do they have any money to work with? Collateral – Is the property worth what we require?

As simple as 1 - 2 - 3

I really do not know what to say.  I believe that our property values are stabilizing, the rates are at a historic low - at least in my 30 years of being in this business.  And, there are some amazing deals out there for any buyer in any price range.  And, there are a lot of different loan programs for owner occupied, second homes and investment properties.  Really it is not as hard as you think.

If you are wondering is you can afford a home or can come up with the downpayment, there are some simple, fast ways to figure this out.

#1 - Call me.  It is free.  We will work up the numbers and find out if you can afford the new house payment.  A credit report does cost a little but only after we look at the new house payments, etc.,

#2 - Start saving the difference between your new house payment and your current rent/house payment.  If your current rent is $750 and your new house payment will be $1100 then you need to save the difference to see how that feels.  Can you do without your Dutch Brothers coffee each month - or whatever your luxury item is - and make up that difference?  Worse case, you will decide home ownership is not for you yet and you will have some money to pay off a bill or go on a little vacay.

#3 - Let me get you pre-approved.  Yes, this costs $25.00 for the credit report but it is worth it.  And then you contact a real estate agent who knows the area you are looking in and go out there and purchase that new home.

It is as simple as 1, 2, 3