here is a system to purchasing real estate which can be broken down into six basic steps. Following these steps will simplify a real estate transaction while avoiding common mistakes made by the typical consumer. Secure Loan Preapproval. The most common mistake made by the typical consumer is shop-ping for a home without having their financing pre-arranged. A local, experienced and reputable mortgage professional will help the buyer figure out the amount that the buyer is qualified to borrow and determine any options available to the buyer to increase borrowing power. Consumers need to explore alternative lending programs, such as those backed by the Federal Housing Ad-ministration (FHA), the Veterans Administration (VA), and The Federal National Mortgage Association (Fannie Mae). The preapproval process is much more involved than a simple prequalification process.
Pre-approval converts a buyer from “contingent” to “all cash” improving one’s negotiating position. And these days, an offer will not even be considered or submitted to the seller without first seeing a written mortgage loan pre-approval for the Buyer. Select a Real Estate Buyer’s Agent. Home Buyers need to select the Realtor that best serves their needs, wants, timetable, pace and objectives. The Realtor should be knowledgeable, professional and experienced,
6 Steps to Buying a Home with excellent communication skills, proficiency with MLS computerized searches and unquestioned integrity. Computer and internet savviness, as well as texting and emailing mobility are a must. . Plan the Physical Home Hunting Process with a Buyer’s Agent A common mistake made by many buyers
is that they try to view and tour homes BEFORE they have their financing and mortgage loan pre-approval in place. That’s not good, for a number of reasons, and can be a very frustrating and costly approach. The value and benefit of getting loan pre-approval upfront are numerous, but include things like the home buyers will only be viewing homes they can afford, they can shop with financial confidence, and they’ll be able to act quickly when they find a home that’s perfect. Submit an Offer As soon as a h o m e b u y e r finds the right property, it is now time for the offer and contract negotiations. If you’ve followed this outline in its proper sequence, you’re ahead of the game and you and your Buyer’s Agent will be in a position to move forward comfortably and confidently. Process the Mortgage Loan Once the home is under contract, your
lender will move forward with the obtaining full loan underwriting approval. There are many steps along the way, and many of them need to be constantly supervised and monitored by all parties – you, your Buyer’s Agent and your Loan Officer/ Lender. Close/Record the Transaction. A buyer that does not come to the closing fully prepared may run into unpleasant surprises that could not only delay the closing but could very well cause it to crash and burn. The buyer’s team of professionals (their Buyer’s Agent, Loan Officer (lender) and Escrow Officer (title company) should be able to coach the buyer on what happens throughout the entire escrow and closing process.
Redneck Valentine Day Poem Collards is green, my dog's name is Blue and I'm so lucky to have a sweet thang like you.
Cut from the best cloth like a plaid flannel shirt, you spark up my life more than a fresh load of dirt.
Yore hair is like cornsilk a-flapping in the breeze. Softer than Blue's and without all them fleas.
When you hold me real tight like a padded gunrack, my life is complete; Ain't nuttin' I lack.
You move like the bass, which excite me in May. You ain't got no scales but I luv you anyway. Yo're as satisfy'n as okry jist a-fry'n in the pan. Yo're as fragrant as "snuff" right out of the can. You have some'a yore teeth, for which I am proud; I hold my head high when we're in a crowd. On special occasions, when you shave under yore arms, well, I'm in hawg heaven, and awed by yore charms. Still them fellers at work, they all want to know, what I did to deserve such a purdy, young doe. Like a good roll of duct tape yo're there fer yore man, to patch up life's troubles and fix what you can. Yo're as cute as a junebug a-buzzin' overhead. You ain't mean like those far ants I found in my bed.
Yore complexion, it's perfection, like the best vinyl sidin'. despite all the years, yore age, it keeps hidin'. Me 'n' you's like a Moon Pie with a RC cold drank, we go together like a skunk goes with stank. Some men, they buy chocolate for Valentine's Day; They git it at Wal-Mart, it's romantic that way. Some men git roses on that special day from the cooler at Kroger. "That's impressive," I say. Some men buy fine diamonds from a flea market booth. "Diamonds are forever," they explain, suave and couth. But for this man, honey, these won't do. Cause yore too special, you sweet thang you. I got you a gift, without taste nor odor, more useful than diamonds... IT'S A NEW TROLL'N MOTOR!!
"I saw a house I like. The price is $100,000 less than the other houses for sale in the same neighborhood. How can the price be that much cheaper?" Without even looking up the listing in the Arizona Regional MLS, I would bet $100,000 that I already know the answer. Would you like to venture a guess before I tell you??? Now how exactly does that Jeopardy jingle go? Da Da, Da Da, Da Da Da... Dot, Da Da Da Da Da. Da.. Da... Was that close? :-) Does the term Short Sale ring a bell? Or what about the difference between a Short Sale and a Foreclosure? Okay... I'll quit playing around and get down to business. The listing my client asked about is a Short Sale that has an asking price of at least $100,000 below the nearest comps in the neighborhood. And given the mindset of most folks looking for a deal/steal in this Gilbert Real Estate market, who wouldn't be attracted by this price? So what's the catch?? => On any given Short Sale listing, the asking price is what's called a "phantom" p ri ce . Th e seller and a buyer can agree to the price, and even sign a contract at t h a t price, but unless and until the seller's lender(s) agree and approve of that price, the contract will NOT be honored and the purchase will NOT happen. End of story. How is the asking price of a Short Sale listing determined? It's determined solely by and between the homeowner and their listing agent. Doesn't the asking price have to be reasonable? Or doesn't it have to at least be based on recent comps (comparable sales)? Nope! What are the chances of the lender(s) being willing to accept a payoff amount that is substantially below current market value? Slim to none! Lenders have proven over and over again, by their behavior -- that they would prefer to foreclose! So now that I've dispelled the nefarious truth about Short Sale asking prices, or at least cast reasonable doubts about their efficacy and integrity, where does that leave the serious home buyer or investor? => With your eyes wide open! The next time you encounter a listing that seems too good to be true, trust your instincts and know that it IS most likely too good to be true. And when in doubt, consult with a Buyer's Agent you know and trust, and that speaks the truth from her/ his heart and experience.
What's the difference between a Short Sale, a Bank Owned Home and a Traditional Listing? If ever there was a more confusing real estate question than the title of this blog post, I can't remember it. Here's my attempt at demystifying the three categories of properties that comprise the residential Gilbert Real Estate resale market in Gilbert, Arizona (and the greater Phoenix area for that matter). A Short Sale property listing is one in which the homeowner owes more in mortgage loan(s) than the property's current market value - commonly referred to as being 'upside down' or 'underwater'. If the homeowner/seller finds a buyer that is willing to contract to purchase the home, then the homeowner's lender(s) must be willing to accept LESS than full payoff on their loan(s). Being 'short' of payoff is where the term Short Sale originated. [Please note that a Short Sale is anything but short in processing time, as the vast majority of successful or unsuccessful Short Sale transactions take 6-18 months just to find out whether or not the homeowner's lender(s) are willing to play ball and approve the Short Sale.] A Bank Owned property listing is one in which the former homeowner's lender has already foreclosed and is now the legal owner of the property. With such listings, an asset manager has been assigned to negotiate the sale of the property, and compared to Short Sales, response times to an offer may be expected by a home buyer or buyer's agent considerably sooner than with a Short Sale. (NOTE: The terms Foreclosure, Lender Owned and REO all mean the same thing.) A Traditional Listing is one in which the current homeowner is neither upside down nor in a distressed situation. That can mean it's owned by a classic homeowner, or it can mean the property is owned by an investor who purchased the property at a Trustee's Sale (foreclosure), fixed it up and is now re-selling (flipping) it. Either way, the response time to a prospective buyer's offer is typically quicker than Bank Owned listings. I can already hear a few of you saying, "SO WHAT?!?! A house is a house, so what difference does it make what 'type' of property or listing it is!!" Here's what --> If you're a nonchalant investor who loves the thrill of gambling and has no worries about time or energy invested, then Short Sales should definitely be your game of choice. But if you're a serious investor or home buyer who wants a modicum of predictability, respectability, control and sanity involved with your next purchase, then choose wisely - Bank Owned properties and Traditional Listings may very well hold the opportunities you're seeking. ;-)
FHA Extends 90-Day Anti-Flip Waiver As of today FHA has officially announced that the HUD 90 Day Property Flipping Waiver (a.k.a. – FHA flip rule waiver) has been extended through December 31, 2011!
IMPORTANT POINTS TO REMEMBER: The Seller’s acquisition cost has been defined as the following (if paid for by the seller): closing costs + prepaid’s + commissions + purchase price To be eligible for an FHA flip (90 days or less) the transaction MUST be ARMS length The property CAN NOT show evidence of “multiple” title transfers within the past 12 months – documented with a Title Report The property must have been marketed “fairly” on MLC, at auction, for sale by owner or with developer marketing
WHAT ABOUT DEALS WHER PURCH PRICE EXCEEDS 20% OF THE INVESTOR’S ACQUISITION PRICE? It is very important to remember that while the current extended version of the flip waiver does allow for flips over the 20% threshold, there are not any lenders accepting these types of transactions. What this means is that once lenders decide to accept these types of flips (the one’s where purchase price exceeds 20% of what the investor paid) the groundwork is already laid by FHA to allow these types of transactions to move forward.
Asset Based Loan Program A good alternative for clients with assets and low monthly income
There is an option available for those clients who do not show enough “active” monthly income to qualify for a loan. This solution works great for many retired and self-employed clients. Here’s an example using this program: ASSET BASED EXAMPLE: The borrowers have $0 active income (no wages, no retirement, no social security etc….) The borrowers have $2 million in an investment account (IRA) In this case, the money they have in their investment account can be used to generate a monthly income figure used to qualify them. Here is a simplified version of the mechanics used to derive the monthly income based on their assets. Borrowers Assets = $2.0 Million. Due to the fact that they are in an IRA, the asset total must by reduced by 30%. Net Effective Assets = $1.4 Million ($2.0 Million x’s 70%). We can then divide the net asset figure by 360 to calculate an effective monthly income. In this case that calculation would look like this: $1.4 Million/360 = $3,889 This means that this borrower can get credit for $3,889 in monthly income AND this is the income that they used to qualify for their new home loan. This program can only be used for primary or secondary (“vacation”) home purchases. The buyer also must put at least 30% down. While it may be difficult to qualify this type of a client on a “traditional” loan, many can be fully approved through our asset based program. The borrowers are still utilizing a Conventional 30 year fixed with no strings attached. In fact, it is the identical loan/ term that they would have received if they were trying to qualify using regular income!
BOTTOM LINE: FHA buyers can purchase properties that have been purchased by the seller within the past 90 days as long as the current sales prices does NOT exceed 20% of what the investor/seller paid for it. Please make sure to consider the 3 important points outlined above. If and when lenders (including PrimeLending) start allowing FHA flips where the sales price exceeds 20% of the investors price I will be sure to let you know right away!
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My grandparents were married for over half a century and played their own special game from the time they had met each other. The goal of their game was to write the word "shmily" in a surprise place for the other to find. They took turns leaving "shmily" around the house, and as soon as one of them discovered it, it was their turn to hide it once more. They dragged "shmily" with their fingers through the sugar and flour containers to await whomever was preparing the next meal. They smeared it in the dew on the windows overlooking the patio where my grandma always fed us warm, homemade pudding with blue food coloring. "Shmily" was written in the steam left on the mirror after a hot shower, where it would reappear bath after bath. At one point, my grandmother even unrolled an entire roll of toilet paper to leave "shmily" on the very last sheet. There was no end to the places "shmily" would pop up. Little notes with "shmily" scribbled hurriedly were found on dashboards and car seats, or taped to steering wheels. The notes were stuffed inside shoes and left under pillows. "Shmily" was written in the dust upon the mantel and traced in the ashes of the fireplace. This mysterious word was as much a part of my grandparents’ house as the furniture. It took me a long time before I was able to fully appreciate my grandparents' game. Skepticism has kept me from believing in true love - one that is pure and enduring. However, I never doubted my grandparents' relationship. They had love down pat. It was more than their flirtatious little games; it was a way of life. Their relationship was based on a devotion and passionate affection which not everyone is lucky enough to experience. Grandma and Grandpa held hands every chance they could. They stole kisses as they bumped into
each other in their tiny kitchen. They finished each other's sentences and shared the daily crossword puzzle and word jumble. My grandma whispered to me about how cute my grandpa was, how handsome and old he had grown to be. She claimed that she really knew "how to pick 'em." Before every meal they bowed their heads and gave thanks, marveling at their blessings: a wonderful family, good fortune, and each other. But there was a dark cloud in my grandparents' lives: my grandmother had breast cancer. The disease had first appeared ten years earlier. As always, Grandpa was with her every step of the way. He comforted her in their yellow room, painted that way so that she could always be surrounded by sunshine, even when she was too sick to go outside. Now the cancer was again attacking her body. With the help of a cane and my grandfather's steady hand, they went to church every morning. But my grandmother grew steadily weaker until, finally, she could not leave the house anymore. For a while, Grandpa would go to church alone, praying to God to watch over his wife. Then one day, what we all dreaded finally happened. Grandma was gone. "Shmily." It was scrawled in yellow on the pink ribbons of my Grandmother's funeral bouquet. As the crowd thinned and the last mourners turned to leave, my aunts, uncles, cousins and other family members came forward and gathered around Grandma one last time. Grandpa stepped up to my Grandmother's casket, and taking a shaky breath, he began to sing to her. Through his tears and grief, the song came, a deep and throaty lullaby. Shaking with my own sorrow, I will never forget that moment. For I knew that although I couldn't begin to fathom the depth of their love, I had been privileged to witness its unmatched beauty. S-h-m-i-l-y:
See How Much I Love You.
What do you see, nurses, what do you see? What are you thinking when you're looking at me? A crabby old woman, not very wise, Uncertain of habit, with faraway eyes? Who dribbles her food and makes no reply When you say in a loud voice, "I do wish you'd try!" Who seems not to notice the things that you do, And forever is losing a stocking or shoe..... Who, resisting or not, lets you do as you will, With bathing and feeding, the long day to fill.... Is that what you're thinking? Is that what you see? Then open your eyes, nurse; you're not looking at me. I'll tell you who I am as I sit here so still, As I do at your bidding, as I eat at your will. I'm a small child of ten ...with a father and mother, Brothers and sisters, who love one another. A young girl of sixteen, with wings on her feet, Dreaming that soon now a lover she'll meet. A bride soon at twenty -- my heart gives a leap, Remembering the vows that I promised to keep. At twenty-five now, I have young of my own, Who need me to guide and a secure happy home. A woman of thirty, my young now grown fast, Bound to each other with ties that should last. At forty, my young sons have grown and are gone, But my man's beside me to see I don't mourn.
A person who doesn't read has no advan-
tage over the person who can't read. It is better to keep your mouth closed and
let people think you are a fool than to open it and remove all doubt. The difference between the right word and
the almost right word is the difference between lightning and a lightning bug. Age is an issue of mind over matter. If you
don't mind, it doesn't matter. Denial ain't just a river in Egypt. Do the thing you fear most and the death
of fear is certain. If you hold a cat by the tail you learn
things you cannot learn any other way. My mother had a great deal of trouble with
me, but I think she enjoyed it. Mark Twain
At fifty once more, babies play round my knee, Again we know children, my loved one and me. Dark days are upon me, my husband is dead; I look at the future, I shudder with dread. For my young are all rearing young of their own, And I think of the years and the love that I've known. I'm now an old woman ...and nature is cruel; 'Tis jest to make old age look like a fool. The body, it crumbles, grace and vigor depart, There is now a stone where I once had a heart. But inside this old carcass a young girl still dwells, And now and again my battered heart swells. I remember the joys, I remember the pain, And I'm loving and living life over again. I think of the years ....all too few, gone too fast, And accept the stark fact that nothing can last. So open your eyes, nurses, open and see, ..Not a crabby old woman; look closer ...see ME!!
Attitude Check 12 months, 52 weeks, 365 days, 8,760 hours, 525,600 seconds in one year. How many seconds a year do you play? Bills to pay, people to call, houses to show, classes to attend, things to fix, things to clean, so much to do. How many seconds a year do you play? Or is it even really the seconds we spend playing that counts or is it our attitudes? Can I pay the bills with a playful attitude? Challenging as that
may be, I’ll bet it could be done. What if I put a joke in every envelope that I send to pay a bill? Ellen DeGeneres addressed this issue in one of her stand up routines. She said, “What if, when walking down the street, you tagged someone, said you’re it and took off running?” Well, maybe I won’t do that but I am trying to have a more playful attitude. I’m finding that my kids enjoy being around me a lot more. FROM MY HEART
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Randy was absolutely amazing!! My husband and I were buying our first home and Randy made sure that we found our home! Not just a house to live in, but a place we can call home. Every time we walk into our new home, our 2 year old son, Yavin continuously asks "Where's randy?" or he'll yell Randy's name throughout the house hoping he will show up. Any blue truck my son sees is now known as "Randy's truck!" Haha!! Randy's personality was nothing but perfect. The fact that he had such wonderful optimism, even when he was cutting straight to the chase made our experience that much more perfect! You can tell that this is his passion. Helping people find that missing piece and making them feel complete. Janella, Weston & Yavin ~ December 24, 2010
ANSWER
Randy Hooker, M.Ed. Designated Broker Broker@DreamCatcherRealty.com Cindy Hooker, MBA Associate Broker/Editor Newsletter@DreamCatcherRealty.com
Copyright 2011 Jenifer Hooker
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