Arizona Homeowner October / 2009
Inventive Home Lending 1400 E. Southern Avenue, Suite 615 Tempe, Arizona 85282 RETURN SERVICE REQUESTED
The financing of your real estate can be a daunting task. You want the best interest rate and you want the pre-approval, application and close of escrow processes to be hassle-free. I understand. I listen. I respond quickly. • I specialize in custom-designing a specific loan for each individual client. With over 400 loan programs at my fingertips, you will get a mortgage that best fits your unique situation. • I use the latest technology in loan underwriting. You’ll receive a loan decision within hours. Don’t wait days to find out if you qualify for the home you really want! • Closing thousands of loans and working with thousands of borrowers assures you that I have the knowledge and expertise to handle any situation. • My impeccable reputation is my best asset. I always strive to exceed your expectations! CALL ME TODAY!
autumn is here!
Happy October! Signs of cooler weather are finally starting to hit the Valley. That should lift all of our spirits. And I am happy to note that the real estate market keeps chugging along. The month of August closed out with just over 8,100 homes sold. Homebuyer demand still remains strong. However, there are some new governmentmandated mortgage regulations that are slowing down the process of getting a home loan. There are two sets of new government regulations that are creating complications for mortgage lenders. The first one implemented about six months ago is the Home Valuation Code of Conduct (HVCC). The government felt that lenders had too much influence over appraisal values in the past resulting, in some cases, of inflated appraisal values. As a result, the government took away a mortgage lender’s ability to choose an appraiser. Every conventional loan now requires a blind appraisal panel to conduct appraisals. The lender now orders the appraisal through a government-approved appraisal management company. Since the appraiser has no contact with the lender, there are no appraisal cost restraints, completion time constraints, or quality constraints. We used to see conventional appraisals getting done in 3-5 business days with an average cost of $325. Now, we are seeing appraisals take 10-14 days at an average cost of $450. And the quality of these appraisals is often poor with conservatively low valuations. In a nutshell, we feel that the HVCC appraisal rule was a decent idea with systematic problems that have not been addressed. It has
caused unnecessary delays in the loan process, created poorly done appraisals, and raised the consumer’s costs. Secondly, the Mortgage Disclosure Improvement Act has been designed to give consumers a better education of what their loan costs are before closing. It requires a lender to prove that they have sent out a new Good Faith Estimate and Truth in Lending statement every time there is a program change or loan cost change of more then a couple hundred dollars. The problem is that there is a mandatory three-day wait to allow a consumer to review each set of disclosures. This has created quite a few delays and in many cases has caused a buyer to be late on their closing date. Many sellers now fine their buyers if they don’t close on time. There are some fees such as appraisal, inspections, and title fees that are not fully known until the end of the process. And as a result, the new mandatory three-day wait for re-disclosure is impacting almost every file at the end of the process. This is another example of a good idea gone bad. We’ve gone from fairly loose regulation of the mortgage industry in the past to overregulation today. Some industry experts are suggesting that the HVCC appraisal and the MDIA disclosure rules have, on average, added three weeks to the mortgage loan process for the consumer and raised loan and appraisal costs. It is important for all consumers buying or refinancing a home to be aware of these new regulations and adjust their closing dates to allow for the extra time. Call me for help and guidance in these matters.
HELP FOR HOMEOWNERS
• Mortgage rates are at a 50-year low. Almost everyone can benefit by either buying a new home or refinancing to a low fixed rate. Call now for a free review of your options. • First-time home buyers are eligible for up to an $8K tax credit for buying and closing on a home by 12/1/09. That’s free money if you buy a home by the deadline! • If you are behind on your mortgage payments the government has offered incentives to lenders to modify your loan so that the interest and payment is lower. (We do not offer loan modifications but would be happy to offer free advice on how you can get help.) • If you have a Fannie Mae, Freddie Mac, FHA or VA loan you may be eligible for refinancing even if your owe more on your loan then your home is worth. (Call us to determine if you are eligible.)
Brady Holland President 480.627.2423 bradyh@ihlending.com www.ihlending.com
Celebrate The Season
Uncle Sam to Slow Housing Improvement?
MORTGAGE RATES AS OF 9/15/09 Loan Rates for $150K-$417K
30-Year Fixed at 5.000%/5.342% APR 15-Year Fixed at 4.375%/4.657% APR
Loan Rates for $418K-$1.5M
5/1 ARM at 4.125%/4.372% APR 7/1 ARM at 4.500%/4.775% APR
*Note: Quotes assume primary home financing with 720+ fico score on a single family property with 20%-30% equity. All quotes offered at 1% origination fee. Certain restrictions apply.
MB0905347
Produced by Desert Lifestyle Publishing • 480.460.0996
the warmth of wood Custom-Crafted Garage Doors
plan a cozy night in
Remington’s Delicious Sea Bass
Event Calendar
Trees and plants that lose their leaves in autumn are called deciduous. Those that don’t are called evergreen. Evergreen trees do lose their leaves continually, but never all at once, so it’s like they’re green all year around.
October 2009
Phoenix Walk for PKD Market Street at DC Ranch, Oct. 11th 800.753.2873 or pkdcure.org/phoenixwalk Walk to honor those affected with Polycystic Kidney Disease and raise funds to find a cure. PKD is one of the most common lifethreatening genetic diseases and affects 600,000 Americans. Participants can choose between a 1-mile or 5K walk followed by a tented Corporate Expo on The Plaza and live entertainment. Fun for all ages is in store! U2 360o Tour University of Phoenix Stadium, Oct. 20th 623.433.7100 or universityofphoenixstadium.com Promoting their newly released album, No Line on the Horizon, U2 is putting on a show like no other. Just as the tour name implies, the band will be performing on an innovative 360o stage. With such hits as I Still Haven’t Found What I’m Looking For, Vertigo and Bloody Sunday, it’s no wonder U2 is tied for the most Grammys won with 22. The Black Eyed Peas take to the stage first, guaranteeing a great start to the show! Crave Arizona Southbridge Scottsdale Waterfront, Oct. 22nd – 24th 888.946.3277 or cravearizona.com Make your way out to any of the amazing experiences during Crave Arizona’s three-day culinary extravaganza. The event highlights local chefs, artisans, and one-of-a-kind dining experiences found only in Arizona. The schedule includes exquisite dinners, cooking demonstrations, competitions, educational seminars, epicurean adventures and celebrity chef sightings! Our Colorful World Arizona Science Center, Oct. 24th 602.716.2000 or azscience.org You and your child can explore the world of science hands-on at the Saturday Science classes. Our Colorful World explores just that, the world of color. Learn what makes a rainbow, why an apple is red or green and explore the properties of light color. What a great way to make learning fun. Who knows – maybe you will learn something new as well! Trick or Treat: Halloween with the Symphony Phoenix Symphony, Oct. 31st 602.459.1999 or phoenixsymphony.org Bring out your little boys and ghouls dressed in costume for a day of mischief at the Phoenix Symphony. In the spirit of Halloween the orchestra will delight with an exciting performance to include March of the Little Goblins and The Sorcerers’ Apprentice, best known from the Disney hit Fantasia. This fantastic event is in the afternoon, so you will have plenty of time for trick or treating.
When it comes to improving the aesthetics and curb appeal of your home, take into consideration the upgrades that can be made to your garage door. Garage doors are often the focus or spotlight on your home particularly if they front the street. When visitors arrive, your garage doors are perhaps the first thing they see when they pull into your driveway. And for a homeowner, making improvements to your property that you can visually appreciate on a daily basis tends to give you more satisfaction. One of the most popular trends today in garage doors is the conversion from a typical 25-gauge steel door to a custom-designed wood door. Inspired by the heritage of swinging carriage doors, these styles offer a warm and rich look to your home. Wood garage doors are not a new concept. In decades past, garage doors were made exclusively of wood and often swung open to the sides or to the top. Over the years, improvements were made to garage doors including doors set in panels that roll up in sections to the ceiling. The typical steel garage doors that most homebuilders install today have the advantage of being lighter weight with minimal maintenance. However, it seems that the beauty and architectural “wow” of wood garage doors are making a comeback. Today’s wood garage doors offer a custom-crafted look that sets a home apart along with the innovations and functionality developed in recent years. Wood garage doors are now built onto a strong steel door. In fact, the steel door is the foundation and the wood is overlaid on top of the steel. Depending on the design you choose, another layer of wood will be applied to give your door depth and dimension. The doors are created to appear as one flat unit that swings open like in days past. But they are actually built with panels that roll up into your garage when opened, just like the modern garage doors we’ve become accustomed to. Because a wood garage door is much heavier than a 25-gauge steel door, the track and reinforcements required to lift and support the door will need to be modified. Three-inch tracks with three-inch rollers may be necessary as will heavy duty, commercial-grade hardware. The lighter steel doors typically require two springs in the lifting mechanism where as these heavier wood doors may require four. Because the track and door will be larger than what you may have, you’ll need to confirm that your garage has enough headroom (the distance from the support lumber running across the top of the garage door opening to the ceiling). It is possible that you will need to replace your automatic garage-door opener as well, especially for larger, two-car garage doors. These doors may require a 3/4 horsepower chain-drive operator that is specifically designed to lift doors of this weight. Let’s talk maintenance. These wood beauties will need regular upkeep to protect them from the elements. Our harsh Arizona sun can cause fading and cracking of the wood, so these doors should be resealed at least once a year. With all that goes into installing and maintaining a wood garage door, one might ask if it’s worth the trouble. That’s where personal opinion comes in. If you are searching for a way to make your home really stand out, then the benefits and aesthetics may far outweigh these issues. You can custom-create garage doors with choices of styles, hardware, paint and stain colors. This is an excellent opportunity to enhance the architectural design of your home while creating an entrance that makes your homecomings just a little sweeter!
Your Home
Now that the hot summer months are finally coming to a close, Arizona residents can now look forward to the cool fall weather that’s just around the corner. It may seem crazy to think about breaking out the long-forgotten sweater hiding in your bottom drawer, especially after surviving the over 100 degree temperatures during the last few months. But here are some creative and “fallthemed” ideas to get you in the spirit of autumn. Although our desert environment may not conjure up the same images of autumn as in other parts of the country, there are still plenty of ways of enjoying this special time of year! One of the most common things you hear from residents who have moved from the Midwest or the East Coast is that they miss the variety of seasons, especially the changing of the leaves. You can find this wonderful feature of nature in different places throughout Arizona. If you are interested in seeing the shimmering golds and brilliant reds of changing leaves, then the area in and around Flagstaff has a lot to offer. Begin with a visit to the Arboretum and a gorgeous two-hour drive along Hart Prairie Road to take in the majestic beauty of the aspen groves. Or better yet, enjoy a scenic sky ride on the ski lift at the Arizona Snowbowl. Here you’ll journey to the top of the peaks with the glorious fall leaves blanketing the landscape below you. If haunted hotels, houses and other ghostly hotspots are up your alley, there is a plethora of historic places located throughout Arizona to get you into the Halloween mood. From the haunted Jerome Grand Hotel in Jerome to The Velasco House in Tucson, there are plenty of ways to get “spooked”! If things-that-go-bump-in-the-night are not exactly what you crave, perhaps a jaunt through a local farmers’ market will put you in the spirit. Gather fresh vegetables and fruit and prepare a special
meal with all of your “finds.” Look for harvestseason food such as corn, squash, apples and turnips. Or pick out that perfect pumpkin at a nearby pumpkin patch. Many of the local farms have special activities in celebration of fall such as hayrides, corn mazes and apple pie bake-offs. Decorating the house can be simple and fun too. If you have a fireplace, adorn your mantle with fall foliage, pine cones, dried corn, mini pumpkins and gourds surrounded by deliciously-scented candles. Add accent pillows and an inviting throw to your living areas using heavier fabrics such as velvet and chenille and in autumn colors such as mustard yellow, terracotta orange, chocolate brown or brick red. Change your front-door wreath to one with fall colors and place pumpkins of varying size around your entry and porch as a warm welcome to guests. While Halloween tends to grab the spotlight, a wonderful holiday in the Mexican tradition is Dia de los Muertos or “Day of the Dead.” Families and friends come together during this special holiday to honor their deceased. It is a day of celebration rather than a day of sadness. Search out local Dia de los Muertos festivals and incorporate this tradition into your family’s calendar this year. If you are looking for a quiet night at home, then curl up by the fire and enjoy a delicious mug of steaming, homemade apple cider or hot cocoa while watching a fall-themed movie. Some suggestions include the romance Autumn in New York with Richard Gere and Winona Ryder, Brian’s Song (what better way to feel the essence of fall but with a heartwarming football film), Legends of the Fall with Anthony Hopkins and Brad Pitt or of course, the original 1978 Halloween starring Jamie Lee Curtis. Enjoy!
Some years offer better fall colors than others. If it has been a particularly dry year, the leaf colors will not turn as vibrant because parched leaves can not produce enough sugar to make anthocyanin the presence of which causes leaves to turn red. The peak period for popcorn sales for home consumption is in the fall. Popcorn enjoyment varies throughout the world. While Germany, Belgium, Luxembourg and Switzerland love sweet popcorn, the rest of Europe prefers the salted version. Americans add melted butter and the Japanese often enjoy seaweed or shrimp-flavored popcorn. Ever bobbed for apples? Fresh apples float on water because nearly 25% of their volume is air. Pumpkins are ready to harvest approximately four months after planting.
Sea Bass
Local Flavor!
Garden Party 2009 | Hemingway: Cuba to Paris Phoenix Art Museum, Oct. 9th 602.257.1222 or phxart.org This outdoor fiesta is in honor of the great author Ernest Hemingway and the influence Cuba and Spain had on his writings. George Wolfe, renowned expert on Mexican and Latin American art, has mounted his newest production which brings to life the dramatic adventures of Hemingway. Afterwards guests can enjoy Latin-inspired cuisine and music. Proceeds will benefit the Latin American Art Alliance.
Ingredients: 6 oz. sea bass 1 cup soy sauce 1/2 cup white sugar salt and pepper to taste
1 cup julienne vegetable of your choice 1 Tbs. butter 1 clove fresh minced garlic
Preparation: In a small pan over medium-high heat, add soy sauce and sugar and reduce by half. Lightly season the sea bass and sear both sides in a hot sauté pan. (About one minute on each side.) Place in oven at 375 degrees for 8 to 10 minutes. Sauté vegetables in a hot pan with butter and garlic. Place sauce on plate with sea bass and vegetable. As an option, garnish dish with black and white sesame seeds. Serves one.
Featuring Remington’s at the Scottsdale Plaza Resort 7200 N. Scottsdale Rd. • Scottsdale 480.951.5101 or www.scottsdaleplaza.com
Event Calendar
Trees and plants that lose their leaves in autumn are called deciduous. Those that don’t are called evergreen. Evergreen trees do lose their leaves continually, but never all at once, so it’s like they’re green all year around.
October 2009
Phoenix Walk for PKD Market Street at DC Ranch, Oct. 11th 800.753.2873 or pkdcure.org/phoenixwalk Walk to honor those affected with Polycystic Kidney Disease and raise funds to find a cure. PKD is one of the most common lifethreatening genetic diseases and affects 600,000 Americans. Participants can choose between a 1-mile or 5K walk followed by a tented Corporate Expo on The Plaza and live entertainment. Fun for all ages is in store! U2 360o Tour University of Phoenix Stadium, Oct. 20th 623.433.7100 or universityofphoenixstadium.com Promoting their newly released album, No Line on the Horizon, U2 is putting on a show like no other. Just as the tour name implies, the band will be performing on an innovative 360o stage. With such hits as I Still Haven’t Found What I’m Looking For, Vertigo and Bloody Sunday, it’s no wonder U2 is tied for the most Grammys won with 22. The Black Eyed Peas take to the stage first, guaranteeing a great start to the show! Crave Arizona Southbridge Scottsdale Waterfront, Oct. 22nd – 24th 888.946.3277 or cravearizona.com Make your way out to any of the amazing experiences during Crave Arizona’s three-day culinary extravaganza. The event highlights local chefs, artisans, and one-of-a-kind dining experiences found only in Arizona. The schedule includes exquisite dinners, cooking demonstrations, competitions, educational seminars, epicurean adventures and celebrity chef sightings! Our Colorful World Arizona Science Center, Oct. 24th 602.716.2000 or azscience.org You and your child can explore the world of science hands-on at the Saturday Science classes. Our Colorful World explores just that, the world of color. Learn what makes a rainbow, why an apple is red or green and explore the properties of light color. What a great way to make learning fun. Who knows – maybe you will learn something new as well! Trick or Treat: Halloween with the Symphony Phoenix Symphony, Oct. 31st 602.459.1999 or phoenixsymphony.org Bring out your little boys and ghouls dressed in costume for a day of mischief at the Phoenix Symphony. In the spirit of Halloween the orchestra will delight with an exciting performance to include March of the Little Goblins and The Sorcerers’ Apprentice, best known from the Disney hit Fantasia. This fantastic event is in the afternoon, so you will have plenty of time for trick or treating.
When it comes to improving the aesthetics and curb appeal of your home, take into consideration the upgrades that can be made to your garage door. Garage doors are often the focus or spotlight on your home particularly if they front the street. When visitors arrive, your garage doors are perhaps the first thing they see when they pull into your driveway. And for a homeowner, making improvements to your property that you can visually appreciate on a daily basis tends to give you more satisfaction. One of the most popular trends today in garage doors is the conversion from a typical 25-gauge steel door to a custom-designed wood door. Inspired by the heritage of swinging carriage doors, these styles offer a warm and rich look to your home. Wood garage doors are not a new concept. In decades past, garage doors were made exclusively of wood and often swung open to the sides or to the top. Over the years, improvements were made to garage doors including doors set in panels that roll up in sections to the ceiling. The typical steel garage doors that most homebuilders install today have the advantage of being lighter weight with minimal maintenance. However, it seems that the beauty and architectural “wow” of wood garage doors are making a comeback. Today’s wood garage doors offer a custom-crafted look that sets a home apart along with the innovations and functionality developed in recent years. Wood garage doors are now built onto a strong steel door. In fact, the steel door is the foundation and the wood is overlaid on top of the steel. Depending on the design you choose, another layer of wood will be applied to give your door depth and dimension. The doors are created to appear as one flat unit that swings open like in days past. But they are actually built with panels that roll up into your garage when opened, just like the modern garage doors we’ve become accustomed to. Because a wood garage door is much heavier than a 25-gauge steel door, the track and reinforcements required to lift and support the door will need to be modified. Three-inch tracks with three-inch rollers may be necessary as will heavy duty, commercial-grade hardware. The lighter steel doors typically require two springs in the lifting mechanism where as these heavier wood doors may require four. Because the track and door will be larger than what you may have, you’ll need to confirm that your garage has enough headroom (the distance from the support lumber running across the top of the garage door opening to the ceiling). It is possible that you will need to replace your automatic garage-door opener as well, especially for larger, two-car garage doors. These doors may require a 3/4 horsepower chain-drive operator that is specifically designed to lift doors of this weight. Let’s talk maintenance. These wood beauties will need regular upkeep to protect them from the elements. Our harsh Arizona sun can cause fading and cracking of the wood, so these doors should be resealed at least once a year. With all that goes into installing and maintaining a wood garage door, one might ask if it’s worth the trouble. That’s where personal opinion comes in. If you are searching for a way to make your home really stand out, then the benefits and aesthetics may far outweigh these issues. You can custom-create garage doors with choices of styles, hardware, paint and stain colors. This is an excellent opportunity to enhance the architectural design of your home while creating an entrance that makes your homecomings just a little sweeter!
Your Home
Now that the hot summer months are finally coming to a close, Arizona residents can now look forward to the cool fall weather that’s just around the corner. It may seem crazy to think about breaking out the long-forgotten sweater hiding in your bottom drawer, especially after surviving the over 100 degree temperatures during the last few months. But here are some creative and “fallthemed” ideas to get you in the spirit of autumn. Although our desert environment may not conjure up the same images of autumn as in other parts of the country, there are still plenty of ways of enjoying this special time of year! One of the most common things you hear from residents who have moved from the Midwest or the East Coast is that they miss the variety of seasons, especially the changing of the leaves. You can find this wonderful feature of nature in different places throughout Arizona. If you are interested in seeing the shimmering golds and brilliant reds of changing leaves, then the area in and around Flagstaff has a lot to offer. Begin with a visit to the Arboretum and a gorgeous two-hour drive along Hart Prairie Road to take in the majestic beauty of the aspen groves. Or better yet, enjoy a scenic sky ride on the ski lift at the Arizona Snowbowl. Here you’ll journey to the top of the peaks with the glorious fall leaves blanketing the landscape below you. If haunted hotels, houses and other ghostly hotspots are up your alley, there is a plethora of historic places located throughout Arizona to get you into the Halloween mood. From the haunted Jerome Grand Hotel in Jerome to The Velasco House in Tucson, there are plenty of ways to get “spooked”! If things-that-go-bump-in-the-night are not exactly what you crave, perhaps a jaunt through a local farmers’ market will put you in the spirit. Gather fresh vegetables and fruit and prepare a special
meal with all of your “finds.” Look for harvestseason food such as corn, squash, apples and turnips. Or pick out that perfect pumpkin at a nearby pumpkin patch. Many of the local farms have special activities in celebration of fall such as hayrides, corn mazes and apple pie bake-offs. Decorating the house can be simple and fun too. If you have a fireplace, adorn your mantle with fall foliage, pine cones, dried corn, mini pumpkins and gourds surrounded by deliciously-scented candles. Add accent pillows and an inviting throw to your living areas using heavier fabrics such as velvet and chenille and in autumn colors such as mustard yellow, terracotta orange, chocolate brown or brick red. Change your front-door wreath to one with fall colors and place pumpkins of varying size around your entry and porch as a warm welcome to guests. While Halloween tends to grab the spotlight, a wonderful holiday in the Mexican tradition is Dia de los Muertos or “Day of the Dead.” Families and friends come together during this special holiday to honor their deceased. It is a day of celebration rather than a day of sadness. Search out local Dia de los Muertos festivals and incorporate this tradition into your family’s calendar this year. If you are looking for a quiet night at home, then curl up by the fire and enjoy a delicious mug of steaming, homemade apple cider or hot cocoa while watching a fall-themed movie. Some suggestions include the romance Autumn in New York with Richard Gere and Winona Ryder, Brian’s Song (what better way to feel the essence of fall but with a heartwarming football film), Legends of the Fall with Anthony Hopkins and Brad Pitt or of course, the original 1978 Halloween starring Jamie Lee Curtis. Enjoy!
Some years offer better fall colors than others. If it has been a particularly dry year, the leaf colors will not turn as vibrant because parched leaves can not produce enough sugar to make anthocyanin the presence of which causes leaves to turn red. The peak period for popcorn sales for home consumption is in the fall. Popcorn enjoyment varies throughout the world. While Germany, Belgium, Luxembourg and Switzerland love sweet popcorn, the rest of Europe prefers the salted version. Americans add melted butter and the Japanese often enjoy seaweed or shrimp-flavored popcorn. Ever bobbed for apples? Fresh apples float on water because nearly 25% of their volume is air. Pumpkins are ready to harvest approximately four months after planting.
Sea Bass
Local Flavor!
Garden Party 2009 | Hemingway: Cuba to Paris Phoenix Art Museum, Oct. 9th 602.257.1222 or phxart.org This outdoor fiesta is in honor of the great author Ernest Hemingway and the influence Cuba and Spain had on his writings. George Wolfe, renowned expert on Mexican and Latin American art, has mounted his newest production which brings to life the dramatic adventures of Hemingway. Afterwards guests can enjoy Latin-inspired cuisine and music. Proceeds will benefit the Latin American Art Alliance.
Ingredients: 6 oz. sea bass 1 cup soy sauce 1/2 cup white sugar salt and pepper to taste
1 cup julienne vegetable of your choice 1 Tbs. butter 1 clove fresh minced garlic
Preparation: In a small pan over medium-high heat, add soy sauce and sugar and reduce by half. Lightly season the sea bass and sear both sides in a hot sauté pan. (About one minute on each side.) Place in oven at 375 degrees for 8 to 10 minutes. Sauté vegetables in a hot pan with butter and garlic. Place sauce on plate with sea bass and vegetable. As an option, garnish dish with black and white sesame seeds. Serves one.
Featuring Remington’s at the Scottsdale Plaza Resort 7200 N. Scottsdale Rd. • Scottsdale 480.951.5101 or www.scottsdaleplaza.com
Arizona Homeowner October / 2009
Inventive Home Lending 1400 E. Southern Avenue, Suite 615 Tempe, Arizona 85282 RETURN SERVICE REQUESTED
The financing of your real estate can be a daunting task. You want the best interest rate and you want the pre-approval, application and close of escrow processes to be hassle-free. I understand. I listen. I respond quickly. • I specialize in custom-designing a specific loan for each individual client. With over 400 loan programs at my fingertips, you will get a mortgage that best fits your unique situation. • I use the latest technology in loan underwriting. You’ll receive a loan decision within hours. Don’t wait days to find out if you qualify for the home you really want! • Closing thousands of loans and working with thousands of borrowers assures you that I have the knowledge and expertise to handle any situation. • My impeccable reputation is my best asset. I always strive to exceed your expectations! CALL ME TODAY!
autumn is here!
Happy October! Signs of cooler weather are finally starting to hit the Valley. That should lift all of our spirits. And I am happy to note that the real estate market keeps chugging along. The month of August closed out with just over 8,100 homes sold. Homebuyer demand still remains strong. However, there are some new governmentmandated mortgage regulations that are slowing down the process of getting a home loan. There are two sets of new government regulations that are creating complications for mortgage lenders. The first one implemented about six months ago is the Home Valuation Code of Conduct (HVCC). The government felt that lenders had too much influence over appraisal values in the past resulting, in some cases, of inflated appraisal values. As a result, the government took away a mortgage lender’s ability to choose an appraiser. Every conventional loan now requires a blind appraisal panel to conduct appraisals. The lender now orders the appraisal through a government-approved appraisal management company. Since the appraiser has no contact with the lender, there are no appraisal cost restraints, completion time constraints, or quality constraints. We used to see conventional appraisals getting done in 3-5 business days with an average cost of $325. Now, we are seeing appraisals take 10-14 days at an average cost of $450. And the quality of these appraisals is often poor with conservatively low valuations. In a nutshell, we feel that the HVCC appraisal rule was a decent idea with systematic problems that have not been addressed. It has
caused unnecessary delays in the loan process, created poorly done appraisals, and raised the consumer’s costs. Secondly, the Mortgage Disclosure Improvement Act has been designed to give consumers a better education of what their loan costs are before closing. It requires a lender to prove that they have sent out a new Good Faith Estimate and Truth in Lending statement every time there is a program change or loan cost change of more then a couple hundred dollars. The problem is that there is a mandatory three-day wait to allow a consumer to review each set of disclosures. This has created quite a few delays and in many cases has caused a buyer to be late on their closing date. Many sellers now fine their buyers if they don’t close on time. There are some fees such as appraisal, inspections, and title fees that are not fully known until the end of the process. And as a result, the new mandatory three-day wait for re-disclosure is impacting almost every file at the end of the process. This is another example of a good idea gone bad. We’ve gone from fairly loose regulation of the mortgage industry in the past to overregulation today. Some industry experts are suggesting that the HVCC appraisal and the MDIA disclosure rules have, on average, added three weeks to the mortgage loan process for the consumer and raised loan and appraisal costs. It is important for all consumers buying or refinancing a home to be aware of these new regulations and adjust their closing dates to allow for the extra time. Call me for help and guidance in these matters.
HELP FOR HOMEOWNERS
• Mortgage rates are at a 50-year low. Almost everyone can benefit by either buying a new home or refinancing to a low fixed rate. Call now for a free review of your options. • First-time home buyers are eligible for up to an $8K tax credit for buying and closing on a home by 12/1/09. That’s free money if you buy a home by the deadline! • If you are behind on your mortgage payments the government has offered incentives to lenders to modify your loan so that the interest and payment is lower. (We do not offer loan modifications but would be happy to offer free advice on how you can get help.) • If you have a Fannie Mae, Freddie Mac, FHA or VA loan you may be eligible for refinancing even if your owe more on your loan then your home is worth. (Call us to determine if you are eligible.)
Brady Holland President 480.627.2423 bradyh@ihlending.com www.ihlending.com
Celebrate The Season
Uncle Sam to Slow Housing Improvement?
MORTGAGE RATES AS OF 9/15/09 Loan Rates for $150K-$417K
30-Year Fixed at 5.000%/5.342% APR 15-Year Fixed at 4.375%/4.657% APR
Loan Rates for $418K-$1.5M
5/1 ARM at 4.125%/4.372% APR 7/1 ARM at 4.500%/4.775% APR
*Note: Quotes assume primary home financing with 720+ fico score on a single family property with 20%-30% equity. All quotes offered at 1% origination fee. Certain restrictions apply.
MB0905347
Produced by Desert Lifestyle Publishing • 480.460.0996
the warmth of wood Custom-Crafted Garage Doors
plan a cozy night in
Remington’s Delicious Sea Bass