How to Recognize Predatory Mortgage Lenders
From Elizabeth Weintraub

Don't Be a Victim of Shady Lenders

The bulk of mortgage lenders in the marketplace are consumer oriented and comply with state / federal laws. These lenders operate within the scope of real estate law and ethically. However, there are lenders who prey on the naive and uniformed. They take advantage of people who don't know how to tell the honest mortgage lenders from the predatory types.

Just like you wouldn't buy a watch from some character in the street with bulging pockets, for example, you should not respond to unsolicited marketing efforts such as:

• Flyers thrown on your doorstep, stuck to the windshield of your car or tacked to a telephone pole


• Direct mail from companies you've never heard of before


• Telemarketers who try to pressure you over the phone

However, like with any profession that involves huge sums of money, complicated products and unsophisticated consumers, there is a potential for fraud. How can you tell if a lender is a scammer? Here are a few warning signs:

• The representative comes off as a fast-talker and smooth operator. You might get the impression that the discussion is more of a spiel that has been repeated so many times it's now rote and not a conversation.


• The rates and fees appear to be unusually high. Ask to have your FICO score explained to you and compare rates among other lenders.


• The lender is using high pressure tactics with you, urging you to sign NOW. If you are refinancing, you have three days to change your mind. If you are buying a home and obtaining a purchase loan, ask what happens if you do not immediately "lock" your loan rate.


• You are told that "bad credit is no problem" Credit is always an issue. Good credit with high FICO scores means you will get favorable terms on your loan. Bad credit might prevent you from getting any loan. Lenders who specialize in making loans to buyers with bad credit are known as sub-prime lenders and do not offer attractive rates.


• The lender encourages you to lie on your loan application and claims "it is done all the time" Do not sign blank documents and do not make false statements on your loan application. It is against the law to defraud a lender.


• You are pressured to accept a risky sounding loan you do not understand nor want. Most folks have some kind of idea how much they feel comfortable paying per month on a mortgage. Do not agree to make higher payments than you can afford to pay.
  The lender pretends to care about you but you have a funny feeling about the pretense Listen to your intuition. It is asking you to pay attention to this nagging feeling that something is not right. Trust yourself.


• You receive assurances that the loan being offered to you will solve all your financial troubles. Nothing will solve all your financial woes until you stop spending money. There is nothing magical about a mortgage, and nobody is doing you any favors in this business.


• Only one lender is offering you a loan and claims nobody else will lend to you. Talk to other lenders. Obtain a copy of your credit report.


• At the closing table, all your fees and charges are different than what you initially agreed to pay. If this happens to you, pull out your Good Faith Estimate and ask for an explanation. Continue to ask questions until you are satisfied with the answers. If you are still suspicious and do not receive satisfactory answers, get up and leave the closing table. Don't close the transaction until you speak with a lawyer.

Help put these crooks out of business. Report predatory lenders to the Federal Trade Commission and / or your state attorney general.

1st time homebuyers

Before You Buy Your First Home - Tips for First-time Home Buyers
From Elizabeth Weintraub

It's not uncommon for a first-time home buyer to say to me, "Gosh, just last week I called you about buying a home and now I'm in escrow! How did this happen so fast?"

The answer is it didn't. First-time home buyers start the search long before most even realize it.
Here's what you can expect from your home shopping experience.

Figuring Out the Benefits

You should buy a home. That's what you've been hearing from friends and family, right? So, by now you have likely already weighed the benefits and decided that home ownership was the best decision for you. That's a major hurdle now passed. You are focused and certain. Good.

Defining Search Parameters

Almost 80% of all home searches today begin on the Internet. With just a few clicks of the mouse, home buyers can search through hundreds of online listings, view virtual tours, and sort through dozens of photographs and aerial shots of neighborhoods and homes. You've probably defined your goals and have a pretty good idea of the type of home and neighborhood you want. By the time you reach your real estate agent's office, you are halfway to home ownership.


How Long Should It Take to Find What You Want?

In seller's markets, often I show only one home. After all, how many homes does one family need? A few buyers will look for years, but buyers who do that aren't motivated. A motivated buyer will find a home within two weeks. Most of my buyers find a home within two days. Good real estate agents will listen to your wants and needs and arrange to show only those homes that fit your particular parameters. Your agent should preview homes before showing them to you as well.

How Many Homes Will You See?

Studies show that the your memory dramatically improves after consumption of carbs and slows upon consuming sugar. So, layoff the soft drinks and have a hearty meal of carbs before venturing out to tour homes. The average number of homes that I show to a buyer in one day is seven. Any more than that, and the brain is on overload. Therefore, don't expect to see 20 or 30 homes; although it's physically possible to do so, you probably will not remember specific details about any of them.

The "Red Shoes" Experience

Women will relate to this. Say, you need a new pair of red shoes. You go to the mall. At the first shoe store, you find a fabulous pair of red shoes. You try them on. They fit perfectly. They are glamorous. Priced right, too. Do you buy them? Of course not! You go to every other store in the mall trying on red shoes until you are ready to drop from exhaustion. Then you return to the first store and buy those red shoes. Do not shop for a home this way. When you find the perfect home, buy it.

How to Rate Inventory

Bring a digital camera and begin each series of photos with a close-up of the house number to identify where each group of home photos start and end.

Take copious notes of unusual features, colors and design elements.

Pay attention to the home's surroundings. What is next door? Do 2-story homes tower over your single story?

Do you like the location? Is it near a park or a power plant?

Immediately after leaving, rate each home on a scale of 1 to 10, with 10 being the highest.

View Top Choices a Second Time

After touring homes for a few days, you will probably instinctively know which one or two homes you would like to buy. Ask to see them again. You will see them with different eyes and notice elements that were overlooked the first go-around. At this point, your agent should call the listing agents to find out more about the sellers' motivation and to double-check that an offer hasn't come in, making sure these homes are still available to purchase.

Making the Selection

I'll let you in on a little secret. I generally know which home a buyer is going to choose, and I suspect most other agents operate the same way. It's an intuition. But I make it a practice not to steer buyers, and I insist that buyers choose the home without interference from me. It's not my choice to make.Real estate agents are required, however, to point out defects and should help buyers feel confident that the home selected meets the buyer's search parameters.

Curb appeal

How to Improve Curb Appeal

by Janet Wickell

Home Selling Advice to Help You Attract Potential Buyers

A large percentage of home buyers decide whether or not to look inside a house or take it seriously based on its curb appeal—the view they see when they drive by or arrive for a showing. You can help make sure they want to come inside your house by spending some time working on the its exterior appearance.

It's difficult to look at our own house in the same way that potential home buyers do, because when we become accustomed to the way something looks and functions, we can't see its faults. Decide right now to stop thinking of the property as a home. It's a house—a commodity you want to sell for the highest dollar possible.

Curb Appeal ExerciseThe next time you come home, stop across the street or far enough down the driveway to get a good view of the house and its surroundings.

What is your first impression of the house and yard area?

What are the best exterior features of the house or lot? How can you enhance them?
What are the worst exterior features of the house or lot? How can you minimize or improve them?

Park where a potential buyer would and walk towards the house, looking around you as if it were your first visit. Is the approach clean and tidy? What could you do to make it more attractive?

Take photos of the home's exterior. If you have a digital camera, view the color versions first, then remove the color and look at it in black and white, because it's easier to see problems when color isn't around to affect our senses.

Make a list of the problem areas you discovered. Tackle clean up and repair chores first, then put some time into projects that make the grounds more attractive.

Kill mold and mildew on the house, sidewalks, roof, or driveway.

Stow away unnecessary garden implements and tools.

Clean windows and gutters.

Pressure wash dirty siding and dingy decks.

Edge sidewalks and remove vegetation growing between concrete or bricks.

Mow the lawn. Get rid of weeds.

Rake and dispose of leaves, even if your lot is wooded.

Trim tree limbs that are near or touching the home's roof.

Don't Forget the Rear View

Buyers doing a drive by will try their best to see your back yard. If it's visible from another street or from someone's driveway, include it in your curb appeal efforts.

Evening Curb Appeal

Do your curb appeal exercise again at dusk, because it isn't unusual for potential buyers to drive by houses in the evening.

One quick way to improve evening curb appeal is with lighting:

String low voltage lighting along your driveway, sidewalks, and near important landscaping elements.

Add a decorative street lamp or an attractive light fixture to a front porch.

Make sure lighting that's visible through front doors and windows enhances the home's appearance.

Landscaping Decisions

There are times that adding elements to your landscaping can improve curb appeal, but there are other times when removing something is even more effective.

For example, we had a listing for a large brick house with large white columns. Tall evergreens, planted in front of each column, had grown taller than the roof. They obscured the columns and windows and made it difficult to see the front of the house.

We suggested that the owner remove them. She trimmed them back, but it didn't do the trick—they were unattractive and still kept potential buyers from seeing the true character of the house.

I sold the house to a couple who could see past the trees. One of their first tasks after closing was to yank them out of the ground, instantly boosting the home's curb appeal.

Most buyers cannot visualize changes, and often won't take a second look at a house if the first look doesn't appeal to them. Home buyers who can visualize changes, and are prepared to make them, expect you to reduce the price of the house to compensate for the work they plan to do.

A Few Curb Appeal Tips

If you can budget it, a fresh paint job does wonders for a dingy house. Drive around your town to find color schemes that are appealing.

Install a more attractive front door, maybe something with leaded glass inserts.
If you can't justify the cost of a new door, consider replacing plain doorknob hardware with something more attractive.

If new hardware is beyond your budget, repaint or stain the door and polish the hardware?
If you brainstorm, you'll find that there's a solution to most problems—one that lets you stay within your budget. The trick is to find the areas where improvements are needed, then work on them as best you can.

Buyer Representation in New Home Construction

Why Should You Have Representation When Buying A Brand New Home?

From time to time, we hear a buyer utter the question:

"Why do I need my own agent? Why shouldn't I just use the agent that is selling in the community?"

We asked one of our team members, to review this question and offer her response:

When I hear a buyer ask, "Why do I need an agent?" I think back to when my parents bought their 2nd house. They dove right in and made a lot of bad decisions because they didn't think they needed help, and thought they'd save some money.

In the 80's, you didn't have the option of Buyer Representation. They muddled through the whole process, negotiating on their own and taking the advice of anyone who offered. After the closing, and after having quite a lot of trouble with getting the house to appraise, my parents did some follow-up work and found that the bank appraiser had fudged to match house price to contract price. They were livid!

But sueing wouldn't have accomplished much even if they'd won, and would have cost them a whole lot of money upfront. Fortunately they stayed in the house long enough that they came out okay but that really stuck with me. So when I decided to become a Realtor, one of the main reasons was to act as a full-time, very serious advocate for my buyers, and to make sure this never happened to them.

On-site agents represent the builder and are obligated to. So, even if they wanted to, they are not there to protect your interests. It's just nice to have someone on your side who's available when and where you need them and can help you with decisions like what colors and materials resell well, what kind of Lender costs are fair and reasonable and which aren't, which building lot is a better investment over another, or any number of a multitude of related issues like this.

Every decision counts in Real Estate and nothing is minor! It's all your money and you, and I, are the only ones who are really going to care the most about making sure you make the right choices and that the Builder lives up to what he/she has promised!

All agents owe both parties to the transaction reasonable skill, care and diligence, but you need more that that. Once you have chosen an agent to represent you exclusively, you will get a committment from someone working to help you find the perfect home, and make sure your interests are served in all parts of the transaction. You'll get more than you even realize you need and learn more than you realized you needed to know. For example, if you aren't sure what the answers are to these questions, it should probably give you pause to be concerned:

Do I negotiate when offering on new construction? The answer might surprise you!

Who pays commission?

What happens after I make an offer to purchase a home?

Do I have to get a pest inspection?

What is the Customary Deposit?

Do I need to have a home inspection? If so who pays for it and when do we do it?

Will I need legal counsel?

What kind of Title should I ask for?

Why do I need a survey and who pays for that?

When do we get the appraisal and does the seller provide it?

What is an origination fee, or points?

How will my property taxes be determined and how are they paid?

Give us a call today if we can further assist you in your real estate transaction. It is one of the biggest investments you will ever make and having a trained and experienced professional on your side will make all the difference!

The Homes Around Nashville Team

Bill and Cynthia Berkley

Jennifer Devine

Realty Executives Fine Homes

615-847-1169

JetBlue cancels all Nashville flights for Monday

By MARCUS FRANKLIN

NEW YORK (AP) -- JetBlue Airways called off almost a quarter of its flights for Monday but hoped that would be the last round of cancellations as it struggles to recover from the snowstorm that saw some travelers sitting on grounded planes for hours.

The airline had scheduled 600 flights for President's Day, more than the 550 to 575 flights it has on a normal Monday, but 139 of them were canceled, JetBlue announced late Saturday.


The latest cancellations were needed to make sure all flight crews had gotten the legally mandated amount of rest before returning to service, JetBlue Airways Corp. spokesman Sebastian White said Sunday.

"Canceling one more day's operations will really help reset our airline," White said Sunday.
All JetBlue flights were canceled in and out of 11 airports: Richmond, Va.; Pittsburgh; Charlotte and Raleigh/Durham, N.C.; Jacksonville, Fla.; Austin and Houston, Texas; Columbus, Ohio; Nashville; Portland, Maine; and Bermuda.

The cancellations followed hundreds of other canceled and delayed flights since Wednesday, when the snow and ice storm that had plowed across the Midwest struck the Northeast, grounding the company's airliners at John F. Kennedy International Airport.

White said JetBlue has been using several methods in efforts to reduce the backlog of passengers stalled by the storm, including charter flights, adding flights in certain regions, rebooking passengers who had some travel flexibility to later dates, and booking seats on other airlines.

He said the airline attempted to warn passengers of the latest cancelations by telephone and e-mail.

The disruptions also meant JetBlue faced mountains of luggage checked by would-be travelers. Some passengers complained that after their flights were canceled no one could find their bags.
White said the airline had teams out in the New York City area on Sunday delivering luggage to customers.

Seniors shop for comfort in new homesState's retirement market huge, says housing expert

By LEE ANN O'NEAL , The Tennessean

When 91-year-old Ernest Backus moved to Tennessee from Ohio in 1994, he sought a home tailor-made for an older resident.

His two-bedroom condo in the southeast Nashville community of Lenox Village has wide door frames to accommodate wheelchairs, electric outlets placed higher on walls, for people with back problems, and a one-floor design.

"That's the big thing," Backus said. "My wife had health problems. Going up and down those steps was too much for her."

The demand for homes with senior-friendly amenities is expected to grow dramatically as the number of Tennessee residents who are 55 and older rapidly grows in the coming decades.
In 2000, 1.2 million Tennessee residents were 55 or older. That number is projected to rise to 2.2 million by 2030, according to U.S. Census Bureau estimates.

If that holds true, the number of 55-and-older residents will grow more than twice as fast as the state's population as a whole.

"The single biggest demographic change that's taking place right in our midst is the retirement market. It's huge," said Edsel Charles, president of the Brentwood-based housing research firm MarketGraphics.

And many older Tennesseans are shunning age-restricted communities, opting instead to live in communities with people of all ages. But often, they want their homes adapted to fit the needs of older residents.

That was the case with Gail and Bobby Connelly.

Last year, they moved to Lenox Village after searching for a home where there would be no yard work and no stairs to climb.

"It just got the best of me, going up and down steps," Gail Connelly said of the basement-area laundry room in their previous home.

They never considered moving to an age-restricted development.

"We would be very bored in an old retirement community," said Gail Connelly, 68. "We like the young people and the middle-aged people. I don't want to see old people all the time."

For others, the shared experience of living near other seniors is comforting.

"There are several in here who are widows," said Frieda Rhodes, who lives in the 55-and-older Reid Hill Commons subdivision in Franklin. "We have a camaraderie, being the same age. We've all had our families."

She likes the quiet of her community. There are no children playing in the backyard and no teenagers driving fast through the neighborhood.

Subdivisions like Reid Hill Commons, with federally permitted age restrictions, are cropping up throughout the Midstate.

There's the 1,069-home Lake Providence development that opened last fall in Mt. Juliet. There's also a 3,000-home development in the planning stages for further east in Wilson County, said Chris Ryan, Tennessee division president for Pulte Homes.

In her one-floor home, Rhodes can walk from her garage to her patio without taking a step up or down. The door handles are lever-style instead of knobs, the hallways are wide and the bathroom has handrails.

"I don't have any knee problems, but that can crop up anytime," Rhodes said.

Bellevue growth and development

Harpeth Village Center is filling up with a variety of services, restaurants

By NICOLE YOUNG

The Tennessean

The new Publix Grocery just off Highway 100 and Temple Road is open, and several other tenants are scheduled to come on board.

Publix anchors the new Harpeth Village Center, which is being developed through a joint venture between the Barclay Group and Kimco.

According to Barclay Group broker Matt Fuller, Harpeth Village Center officials have signed leases with Green Hills Cleaners, Li-en Nails, Kyoto Japanese Steakhouse and Marble Slab Creamery.

“We have leases out for signature with four more potential tenants, including a pet store, Mediterranean restaurant, insurance office, and a game and video store,” Fuller said.“We gave our signed tenants the keys to the space last week. Most of them have submitted their building plans to us already. I expect them to open in about two to three months.”

The center includes a total of 68,000 square feet of shopping space. The new Publix takes up about 45,000 square feet leaving about 23,000 square feet available for lease.Although some negotiations are still taking place, Fuller said he hopes to have the center completely leased out within the next couple of months.

Community continues to grow

“Publix has an excellent reputation,” said Gayla Pugh, Executive Director of the Bellevue Chamber of Commerce. “This community has enough people to support a new grocery store, and all of the ones that are currently in place. I really feel like we needed this new store and the others planned to accompany it. We like good quality additions and this is going to be a beautiful center.”

The new Publix store manager, Stacy Greathouse, has already joined the Bellevue Chamber, Pugh said.Greathouse, who lives in Fairview, joined the new Publix from the store’s Franklin location.“This is a great community and the growth out here is just soaring,” Greathouse said of Bellevue. “The store is already fully staffed and we’re praying for a big turnout with the community. I think a lot of people are excited and I think they’re ready to come shopping.”

Advance Auto Parts signs on
In addition to the shopping space included in the center, the development includes four out parcels ranging in size from 1.32 acres to 0.81 acres.“We have closed on one of our four out parcels with Advance Auto Parts. The other three out parcels are in negotiations with a bank, gas station and drugstore,” Fuller said.

Construction on the Advance Auto Parts store has already begun, officials said.“Once the company purchases the out parcel, they go through an inspection period where they get surveys, legal work and permits lined up. They have to demonstrate that they are not just holding this land, they are going to develop it for income,” said Barclay Group Director of Development Ron Grunwald.

“We oversee the out parcels to make sure the development is going as planned. We want everyone to follow a design plan so that it looks like a nice center. We give the company, in this case, Advance Auto Parts, 30 to 90 days to build.”Grunwald said construction on the center went as planned on schedule.“We had some challenging weather,” he said. “But the development went smoothly. Every project always has something that is challenging.”

Nashville ranks well in job growth
Nashville Business Journal

Nashville 52nd among the 200 largest metropolitan areas in terms of job growth. That's one of the findings of the Milken Institute's annual "Best Performing Cities" report, which identifies where jobs are being created.

The index ranks cities by their ability to create and sustain jobs as well as by salary growth and technology output development.

Nashville ranked 80th in five-year job growth and 73rd in job growth from July of 2004 to July of last year.

Florida cities dominated the economic think tank's index for a second consecutive year, despite the state's recovery from hurricanes that buffeted it in 2004 and 2005. Top of the list was the Palm Bay-Melbourne-Titusville area, followed by the Fort Myers-Cape Coral and the Naples-Marco Island regions.

The report said the cities that ranked highly on the index exhibited strong, growing service sectors; healthy tourism economies; growing populations; and an increase in retirees.
Of the bottom 10 cities, five are in Michigan and four are in Ohio. At the very bottom of the list was Flint, Mich.

Nashville growth

Nashville growth 15th largest over next 20 years

Richard Lawson

By the year 2020, the Nashville metropolitan area could be the 15th-fastest growing metro area in the United States, according to a population study conducted by Nashville Business Journal's parent company.

The findings, published in the July 6 edition of the ACBJ Research Report, project the Nashville area's population to swell from an estimated 1.09 million people in 1995 to 1.5 million people in 2020, a 37.41 percent jump. The Research Report is published by Charlotte-based American City Business Journals.

Of the eight counties in the Nashville Metropolitan Statistical Area, Rutherford County is projected to post the largest percentage increase in population from 1995 to 2020, jumping 55.45 percent from 148,041 people to 230,127 people, according to the study.

Williamson County comes in second with 50 percent projected population growth. Its population is projected to climb from 102,061 people in 1995 to 153,013 people in 2020.

Davidson County finished seventh in the MSA with a projected population growth of nearly 32 percent from 1995 to 2020. But its population is projected to grow from 530,796 people to 699,564.

Robertson County had the lowest projected growth at 23 percent. Its population is projected to grow from 38,740 people in 1995 to 58,881 in 2020.

In comparison, the Memphis metropolitan area ranked 23rd in the study with projected population growth of 30.88 percent. That area's population is projected to grow from 1.07 million in 1995 to about 1.4 million by 2020.

Nashville Area Chamber of Commerce officials hope to ensure the Nashville area does post some strong population growth numbers in the coming years. As in many cities across the country facing a tight labor market, the Chamber is trying to attract people to the area to match job growth.

"We're working to keep the numbers up on the job creation front," says Janet Miller, director of economic development for the Chamber. "You'll see not just a campaign to bring targeted businesses here but campaigns to bring targeted people here."

The "targeted" people she speaks of are college graduates. Chamber officials are actively recruiting on college campuses in a six-state area, hoping college grads make Nashville their destination for employment.

A study released last September by Nashville-based Perdue Research Group showed that job opportunity was the No. 1 reason people were moving to Nashville.

In addition, that study showed the Nashville area was attracting a good demographic.

"People who move to Nashville are most likely to be 25 to 34 years old, have no children, are well-educated and come from the South," the Perdue Research report stated.

"It's really the reason we are targeting the South," says Kathleen Feighny, manager of work force development for the Chamber.

She adds the Chamber is trying to attract even younger people and that emphasis on youth is part of the reason for going after college grads.

ACBJ's study used 32 variables to generate projections for 841 metropolitan counties. Local growth rates since 1980, county-by-county racial patterns and the U.S. Census Bureau's state-by-state population projections were among the factors researchers considered.

The Sacramento, Calif., metro area topped the list with a projected growth rate of 72.62 percent, growing from 1.6 million in 1995 to nearly 2.8 million in 2020.

Types of Mortgages and Loans

Types of Mortgages and Loans

When considering a mortgage, there are a lot of different types of loans to consider. Here’s a rundown:

Federal Housing Administration Loans: The Federal Housing Administration (FHA) is a federal agency within the US Department of Housing and Urban Development (HUD). FHA's primary objective is to assist in providing housing opportunities for low- to moderate-income families. FHA has both single-family (one to four units) and multifamily (five or more units) mortgage-lending programs. The agency does not generally provide the funds for the mortgages but rather insures home mortgage loans made by private-industry lenders such as mortgage bankers, banks and savings and loans.

Homeowners with FHA loans usually have to make only a small down payment (about 3 percent of the value of the home). They also enjoy a lower interest rate -- between 0.5 percent and 1 percent below the interest rates on other mortgages. The downside is that they do indeed have to purchase private mortgage insurance, or as it's called under these loans, mortgage insurance premium (MIP).

Rural Homebuyers: Special loans also exist for people choosing to locate in a rural area. These loans are given to encourage economic development in depressed regions. The specifics of the program are similar to the FHA loan program but may not be as stringent with the income qualifications.

But you'd be surprised at what's considered a "depressed region." You can sometimes find these loans available in very nice areas that for one reason or another have managed to qualify. Be sure to ask if such a program exists in your area.

No matter what kind of loan you end up getting, though, there will be tax implications -- generally positive ones.

Fixed-Rate Mortgage: This is the plain-vanilla loan most people think of when considering a mortgage. You will owe a certain percentage of the loan as interest to the lender. This amount never changes, and your monthly payment will remain the same over the life of your loan. Loans for homes are usually 15 or 30 years.

Adjustable-Rate Mortgage: With an adjustable-rate mortgage (ARM), the interest rate changes to reflect changes in the credit market out in the great, wide world. The first-year rate (otherwise known as the teaser rate) is generally a couple of percentage points below the market rate. There are also upward limits above which the interest rate isn't allowed to go -- this is called the cap. If your teaser rate is 4 percent and you have a five-point cap, then the highest that your interest rate could go would be 9 percent.

What's more, the amount that the interest rate can rise each year is limited, usually to one or two percentage points per year. The frequency at which the rate adjusts may vary; make sure you know these features.

If you're considering an ARM, think about the worst-case scenario. What if interest rates go up and your ARM adjusts to its maximum? What will that maximum be, and when will it kick in? Will you be able to afford the payments?

Cost of Funds Index: One type of ARM is a cost of funds index (COFI) loan. This loan doesn't have any caps and adjusts monthly. It is, in a sense, the most adjustable ARM, since it isn't fixed for a certain time. But the index it’s tied to is the most stable index of them all: The rate banks have to pay their depositors to keep their money (e.g., checking accounts, savings accounts, certificates of deposit). It tends to be a slow-moving index. The COFI loan has certain advantages in that you can vary the amount of your payments as you wish (paying off more or less each month).

Hybrid Loan: Typically, a hybrid loan is fixed for one, three, five, seven or 10 years and then converts to an ARM. This means you get stability for a given amount of time, and then your fate is cast to the winds of the prevailing interest rates.

Two-Step Loans: These loans attempt to have the best of both worlds: The stability of a fixed loan with the lower rates of an ARM.

They appear in their most common forms as 5/25 or 7/23 loans. Math buffs among you will note that the numbers straddling those slashes add up to 30, as in a 30-year loan. This means your interest rate will be fixed for the first five or seven years, then the loan adjusts in one of two ways: It will either become an ARM, adjusting annually, or a fixed-rate loan. The beginning interest rate for these loans is generally lower than that of a standard 30-year fixed loan.

Balloon Loans: These tend to be short-term loans. You borrow money for, say, three or seven years, and the loan is amortized as though it were a 30-year loan. At the end of the three- or seven-year period, you owe the remaining principal in one lump sum. Again, these loans tend to have lower interest rates than the standard 30-year mortgage. If you're not planning to stay too long in your house, you might be interested in such a loan. The reason: You pay less in interest -- saving potentially thousands of dollars -- over the course of the loan than you would with a 30-year fixed. So you're less out-of-pocket when it comes time to sell.

Keep in mind that if your plans change and you want to stay in the house, you're going to have to pay off the loan in full -- by getting another loan, at the prevailing interest rates, and with the attendant costs of getting that new loan. So it isn't for the faint of heart or irresolute of mind.

Veterans Administration Loans: The more you know about loan programs, the more you will realize how little red tape there is in getting a Veterans Administration (VA) loan. These loans are often made without any down payment and frequently offer lower interest rates than what’s ordinarily available. Aside from the veteran's certificate of eligibility and the VA-assigned appraisal, the application process is not much different from any other type of mortgage loan.

What's more, if the lender is approved for automatic processing, as more and more lenders are, a buyer's loan can be processed and closed by the lender without waiting for the VA's approval of the credit application.

Analyzing Your Debt to Income Ratio


The ratio affects your buying power...

Your debt to income ratio is a simple way of showing what percentage of your income is available for a mortgage payment after all other continuing obligations are met. The ratio is one of the many things a lender considers before approving your home loan.

You may see conventional loan debt limits referred to as the 28/36 qualifying ratio. Those numbers refer to two percentages that are used to examine two aspects of your debt load.

The First Number, 28%

This number indicates the maximum percentage of your monthly gross income that the lender allows for housing expenses. The total includes payments on the loan principal and interest, private mortgage insurance, hazard insurance, property taxes, and homeowner's association dues. (Often referred to by the acronym PITI.)

The Second Number, 36%

This number refers to the maximum percentage of your monthly gross income that the lender allows for housing expenses plus recurring debt.
Recurring debt includes credit card payments, child support, car loans, and other obligations that will not be paid off within a relatively short period of time (6-10 months).

Debt to Income Example

Yearly Gross Income = $45,000 / Divided by 12 = $3,750 per month income
$3,750 Monthly Income x .28 = $1,050 allowed for housing expense
$3,750 Monthly Income x .36 = $1,350 allowed for housing expense plus recurring debt.

Not All Loans Are the Same

FHA loan ratios are typically 29/41, allowing a higher debt load for both housing expenses and recurring debt.

For the above example, FHA would allow $1087 for housing and $1538 for housing plus recurring debt.

For a VA loan, the debt to income ratio should not exceed 41% of your monthly gross income.

Get Pre-Approved

Staying within the lender's debt to income ratio limits is only one part of qualifying for a home loan. If the overall picture looks good, a lender may allow you to carry more debt. It's always best to be pre-approved before you begin home shopping, so that you'll know exactly what price range (and loan payment) fits your budget.

Article by Janet Wickell

Moving

Step 7: Moving
7 Steps to House Selling Success!


Even the smallest home contains a lot of furniture, clothes, kitchen equipment, pictures and other items. For a short move, it may be worthwhile to transport small goods by yourself, but larger items will likely require a professional mover.

Homestore.com's moving center provides calculators as well as information on moving options, storage, truck rentals and related topics. This information, plus assistance and advice from your REALTOR®, can ease the moving process.

It's ideally best to get rid of excess furniture and other goods by having a sale before you move. This will reduce the volume of goods to be moved and thus lower moving costs. Unwanted furniture which cannot be sold can often be donated to charitable groups, many of which will come to your home to pick up donations. All other unwanted items should be taken to a landfill. You should provide the U.S. Postal Service with a forwarding address, and utility companies should be advised when to end service. Check with utility companies to see if there is deposit money which should be returned.

How do you plan a move? The time to plan your move begins once you've decided to sell your home. Some of the activities required to sell the home can actually help with the moving process. For example, cleaning out closets, basements and attics means there will be less to do once the home is under contract.

Your planning will be guided by a number of things:

Are you moving a long distance? If yes, you'll likely require an interstate mover and the use of a large van.

Moving internationally. Contact the embassy in Washington, D.C., for information. Be aware that items which may be entirely common in the United States can be prohibited in foreign countries. Ask about customs protocols, duties and taxes.

Moving locally? If yes, will you move yourself? You'll need to consider packing boxes, peanuts, blankets or padding and a van rental.

Planning is key. Stock up on boxes, packing materials, tape and markers. Always mark boxes so that movers will know where goods should be placed.

Who should you use? The decision of who to use can begin with a visit to REALTOR.com's® moving center and discussions with the REALTOR® who is marketing your home.

There are a number of factors to consider. Money is one issue: You'll want to spend as little as possible, but choosing only on the basis of cost can be a mistake. Movers must have the right equipment, training and experience to do a good job. A mover, no matter how large or small, should be able to provide recent references for homesellers with a similar volume of goods to transport.

Get mover estimates in writing. Be aware that it's possible to get discounts through membership organizations and, sometimes, on the basis of your profession: Clergy, for example, sometimes qualify for a discount.

Always confirm mover credentials. Movers should be licensed and bonded as required in your state, and employees should have workman's comp insurance.

Get a checklist. Moving is a big job and checklists can make it more organized and easier. Here are some of the major items to consider:

Money. If you're moving more than a few miles then you should have enough cash or credit to cover travel, food, transportation and lodging.

Medicine. Keep medicines and related prescriptions in a place where they will be available during the move.

Number boxes so that all items can be counted on arrival. Make a list of boxes by number and indicate their contents.

If moving with children, make sure that each has a favorite toy or toys, blankets, games, music and other goods.

Moving historic, breakable or valued items? Such goods routinely require special handling and packaging.

Have address books readily available in case you need help.

If you have a laptop computer with a modem, make it accessible during your trip to pick up business and personal e-mail.

credit history

Guarding Your Credit History
You are the first-and best-line of defense in maintaining
an error-free credit report
By Warren Lutz
Homestore.com

It's one thing to have late payments or delinquencies on your credit report. Everybody has forgotten a payment or two. But it's quite different when somebody else's mistakes cause "dings" on your report.

Fixing such errors is important because unfavorable information on your credit report-accurate or not-affects your ability to borrow money.

The three major credit bureaus-Equifax, Experian, and Trans Union-compile information about you into a report that businesses use to evaluate whether you'd make a good borrower or, in some cases, a good employee. Credit reports tell people where you live, how you pay your bills, whether you've filed for bankruptcy and if you've been arrested.

Let's say you made your monthly payment on your department store credit card on time, but for some reason it is reported as a late payment on your credit report. According to the Fair Credit Reporting Act, both the credit bureau and the department store are responsible for correcting mistakes or incomplete information on your report. But you have to let them know.


Step By Step

To correct an error, write a letter to the credit bureau that produced the erroneous report. Be sure to:

• Provide your complete name and address, stating each item in your credit report that you believe is a mistake and why. Stick to the facts and request that errors be corrected or deleted.

• Include copies-not the originals-of documents that back your claim such as a canceled check or a receipt of payment. Enclose a copy of the credit report and circle items in question.

Next, write a letter to the company or lender where the mistake came from, informing them of your dispute. Remember, include copies of documents that back your claim.

Send both letters by certified mail, return receipt requested, and keep copies for your records. This way you have proof both parties received notice of your dispute.

Credit Bureau Response
The credit bureau must investigate items in question within 30 days (unless they find your dispute is frivolous). They will also forward your dispute to the department store, which must investigate your claim and report back to the credit provider.

If the department store or any other creditor agree there is a mistake, they must notify the other credit bureaus so they can correct the information in their files. If the disputed item cannot be verified, it must be deleted from your files.

When the investigation is done, the credit bureau must give you its results in writing as well as a free copy of your credit report. You can also request that correction notices be sent to anyone having received your report in the prior six months.

Statement of Dispute
If the credit bureau does not resolve your dispute, you can ask them to include a statement (up to 100 words) in your file that says you disputed information in your report. The statement will show up in future credit reports.

If you're not satisfied with how the credit bureau handled your dispute, you can file a complaint with the Federal Trade Commission's Consumer Response Center by phone (877-FTC-HELP) or on the Web.

Rooting out mistakes in your credit report takes time and diligence. But your efforts could make the difference when it's time for you to get the loan terms you want.

Rates

Overnight real estate rates calm
30-year fixed rate at 5.84%; 10-year Treasury yield at 4.82%


Long-term mortgage interest rates were mostly flat Friday, and the benchmark 10-year Treasury bond yield sank to 4.82 percent.

The 30-year fixed-rate average sank to 5.84 percent, and the 15-year fixed rate held at 5.61 percent. The 1-year adjustable dipped to 5.4 percent.

The 30-year Treasury bond yield decreased to 4.92 percent.

Rates are current as of 7:15 p.m. Eastern Standard Time.

Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5.

In other economic news, the Dow Jones Industrial Average lost 20.19 points, or 0.16 percent, finishing at 12,653.49. The Nasdaq was up 7.5 points, or 0.3 percent, closing at 2,475.88.


Article provided by Inman News

Home Staging

HOME STAGING TIPS

Here are 10 quick fixes that make a house more likely to be snagged up by buyers, according to home stager Lori Matzke, founder and president of Centerstagehome.com in Minneapolis:

1. Paint the trim, columns, front door, and the light fixture.

2. Replace the storm door with a full-view one.

3. Clean all the window screens.

4. Add new mulch and a potted plant by the front door.

5. Remove mirrors from over the fireplace so buyers focus on the fireplace.

6. Move furniture 1 1/2 to 2 feet away from the walls to create the illusion of more space.

7. Get rid of any movable storage pieces in the kitchen and take all the clutter off the refrigerator.

8. Clean and regrout the bathroom floor tile.

9. Replace dated bathroom vanities with trendy (and economical) pedestal sinks.

10. Put colorful bedding and matching window treatments in all the bedrooms.

real estate rates

Overnight real estate rates drop
30-year fixed rate at 5.85%; 10-year Treasury yield at 4.84%

Long-term mortgage interest rates fell Thursday, and the benchmark 10-year Treasury bond yield gained to 4.84 percent.

The 30-year fixed-rate average sank to 5.85 percent, and the 15-year fixed rate declined to 5.61 percent. The 1-year adjustable remained at 5.41 percent.

The 30-year Treasury bond yield increased to 4.93 percent.

Rates are current as of 7:15 p.m. Eastern Standard Time.

Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5.

In other economic news, the Dow Jones Industrial Average gained 51.99 points, or 0.41 percent, finishing at 12,673.68. The Nasdaq was up 4.45 points, or 0.18 percent, closing at 2,468.38.

Stock and bond figures are current as of 7:30 p.m. Eastern Standard Time.

Article provided by Inman News

Fed Leaves Key Short-Term Rate at 5.25 Percent
Elaine Barr, Financial News Editor


WASHINGTON –- In a much expected move, the Federal Open Market Committee decided today to keep its target for the federal funds rate at 5.25 percent.

That makes the fifth consecutive meeting the Fed has left the rate unchanged.

[Editor's Note: Protect yourself from rising inflation. The Fed won`t do it for you!]

The widely expected decision keeps the overnight federal funds rate target at the level it was set last June after 17 straight quarter-percentage point increases.

Voting for the FOMC monetary policy action were: Ben Bernanke, chairman; Timothy Geithner, vice chairman; Susan Bies; Thomas Hoenig; Donald Kohn; Randall Kroszner; Cathy Minehan; Frederic Mishkin; Michael Moskow; William Poole; and Kevin Warsh.

Despite the agency's decision to keep the rate unchanged, the Fed indicated it continues to focus on inflation risks.

In a release, the Fed stated that, "Recent indicators have suggested somewhat firmer economic growth and some tentative signs of stabilization have appeared in the housing market. Overall the economy seems likely to expand at a moderate pace over coming quarters.

"Readings on core inflation have improved modestly in recent months, and inflation pressures seem likely to moderate over time. However, the high level of resource utilization has the potential to sustain inflation pressures," the release continued.

It further stated that, "The Committee judges that some inflation risks remain. The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information."

© 2007 NewsMax Media, Inc. All Rights Reserved.

Steps to obtaining a mortgage

The Loan Process - Seven Steps To A Mortgage


Pre-qualification

"Pre-qualification" occurs before the loan process actually begins, and is usually the first step after initial contact is made. In a pre-qualification, the lender gathers information about the income and debts of the borrower and makes a financial determination about how much house the borrower may be able to afford. Different loan programs may lead to different values, depending on whether you are qualified for them, so be sure to get a pre-qualification for each type of program you are suited for.

Application

The "application" is actually the beginning of the loan process and usually occurs between days one and five of the loan. The buyer, now referred to as a "borrower", completes a mortgage application with the loan officer and supplies all of the required documentation for processing. Various fees and down payments are discussed at this time and the borrower will receive a Good Faith Estimate (GFE) and a Truth-In-Lending statement (TIL) within three days which itemizes the rates and associated costs for obtaining the loan.

Opening The File

This occurs between days 3 and 10. At this time the lender orders a property appraisal, property survey and credit reports, mails out requests for verifications, if necessary, for employment (VOE) and bank deposits (VOD) and any other documents needed for processing of the loan. All information supplied by the borrower is reviewed at this time and a list of items not yet received is compiled.

Processing

Processing occurs between days 5 and 25 of the loan. The "processor" reviews the credit reports and verifies the borrower's debts and payment histories as the VODs and VOEs are returned. If there are unacceptable late payments, collections for judgment, etc., a written explanation is required from the borrower. The processor also reviews the appraisal and survey and checks for property issues that may require further discernment. The processor's job is to put together an entire package that may be underwritten by the lender.

Underwriting

"Lender underwriting" occurs between days 15 and 25. The underwriter is responsible for determining whether the combined package passed over by the processor is deemed as an acceptable loan. If more information is needed, the loan is put into "suspense" and the borrower is contacted to supply more documentation.

"Mortgage insurance underwriting" occurs when the borrower has less than 20% of the loan amount to put towards a down payment. At this time, the loan is submitted to a private mortgage guaranty insurer, who provides extra insurance to the lender in case of default. As above, if more information is needed the loan goes into suspense. Otherwise it is usually returned back to the mortgage company within 48 hours.

Pre-Closing

"Pre-Closing" occurs between days 20 and 30. During this time the title insurance is ordered, all approval contingencies, if any, are met, and a closing time is scheduled for the loan.


Closing

Closing usually occurs between days 30 and 45 of the loan. At the closing, the lender "funds" the loan with a cashier's check, draft or wire to the selling party in exchange for the title to the property. This is the point at which the borrower finishes the loan process and actually buys the house.

Closings occur at different places in different states. For instance, some states require that the closing take place at a closing attorney's office while others use a title or escrow company.