It's safe to say that all real estate is national, but not all-national real estate is local. What do I mean by that? It simply means that yes, our local neighborhoods and markets make up the total national real estate picture, but the national real estate picture may not be a fair representation of our local market. I hear buyers and sellers all the time talking about the Case-Shiller Index. I hear them quoting national real estate statistics like they apply to Denver and the neighborhood where they are interested in buying. So, you may be asking yourself, "Why don't all the national real estate reports matter or apply to Denver?" The reason is that real estate is, and has always been a local event. What is happening on the ground, in say, a neighborhood like Washington Park, cannot possibly be represented accurately in a national index or a report in the Wall Street Journal.
I remember back in 2008 and 2009 when it seemed liked everyone in the country was in the middle of the real estate crash. I would call and speak with my fellow Realtors in Dallas, Austin, or the Carolina's and they would tell me how great their market was doing in the midst of the storm. I used to pull my hair out and could not fathom how they were doing well in the middle of the worst real estate crash in the country's history. They would go on to explain how their unemployment rate was low and how people were moving from hard hit areas to their cities. They would tell me why people still wanted to live in Dallas, Austin, Charleston, and Durham. These cities had a lot to offer and people were flocking there to improve their situations. This is a perfect example of local markets doing well when the whole national picture told quite a different story. I could go on for another two pages with example after example of cities, towns, and neighborhoods that are bucking the national trends.
The take home point here is yes, it is important to understand what is happening nationally with the economy and real estate, but understand that it may not apply to your local market. When Realtors tell you "this isn't Florida, Nevada, or California," they are most likely right and speaking from a position of knowledge and experience.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
Tuesday, June 28, 2011
Thursday, June 23, 2011
Read my latest blog post titled "Unle...
Read my latest blog post titled "Unless you are yokel, borrow local" at http://ow.ly/5oO50
Read my latest blog post titled "Unle...
Read my latest blog post titled "Unless you are yokel, borrow local" at http://ow.ly/5oO50
Read my latest blog post titled "Unle...
Read my latest blog post titled "Unless you are yokel, borrow local" at http://ow.ly/5oO50
Unless you are yokel, borrow local
Unless you are a yokel, borrow local. Near the end of the last century, I was at a mortgage conference in Spokane, Washington. The conference had mortgage professionals from across the nation and was a great opportunity to see what was going on in the industry. The industry was changing and a topic of much discussion (and fear) was the impact of internet lenders and the big national banks. Supposedly they were going to use economies of scale, centralized processing, and underwriting to dominate the market. Unbeatable rates, great customer service, and quick closings. While not directly mentioned, I wondered if this would also not reduce global warming and promote world peace. One small problem. As my friends in the military say, "Brilliant idea, sir. I just do not think it is tactically executable".
One of the company's top mortgage originators was serene throughout the discussions. I asked her why she was not the least bit concerned. Turns out she had been doing some "secret shopping". She lived in a western state and a lot of her clients and realtors were excited about the prospect of the whole world competing for the borrower's loan. She had a first time buyer come into her office with a number of realistic questions and wanted a quote. She answered all of his questions and gave the borrower a written Good Faith Estimate. The borrower asked if she could compete with the giant nationwide banks. Sly old fox that she is, she invited the client to call and talk to the big national bank from her office on speakerphone. The borrower asked the same questions and noticed the loan officer either did not know the answer or gave incorrect answers. These were simple questions that any first time buyer might ask. Why do I need an inspection when the property is being appraised? Will the mortgage insurance make my payments if I loose my job? Would an FHA or VA loan be better when you consider my circumstances?
The bank loan officer kept talking about how low their rates were. The borrower at this point was smart enough to know the rate on the mortgage is only half the equation. The rate AND closing costs are what matters when comparing mortgages with similar features such as the term of loan. When the Good Faith Estimate arrived the borrower said he felt like he just missed being run over by a stagecoach. He noticed that while the rate was a little lower, the closing costs were much higher. Before considering the time value of money, etc, it would take the borrower almost 14 years to break even. He noted that the product knowledge and analytical skills of the bank loan officer were limited and seemed more interested in writing a loan up quickly, rather than seeing what was best for the borrower. He wisely went local and got a great rate, service, the right mortgage, AND closed on time.
I see the same thing today with internet lenders and big banks. When refinancing a mortgage it is inconvenient for the borrower, and much worse on a purchase transaction. Sometimes borrowers are required to use a bank's mortgage company when the property is owned by a bank. The last deal I saw like this was typical. Underwriting and processing were out of state and customer service was pathetic. Fortunately the loan options for the borrower were limited, so the bank did not have the opportunity to select the wrong mortgage. In this instance the real estate agent and buyer got lucky and the deal actually closed on time. One of the more amusing comments from the out of state lender, after they finally returned a phone call to the listing agent, was that they were sure that if the wire did not arrive in time for the closing, it would not be more than three days late.
I have seen other loans that sat for weeks or months and never closed. A prominent real estate agent told me that he would not accept any purchase offer from a nationally known lender that supposedly specialized in VA loans because of their performance on the last three deals. The first two deals never closed, and the third deal closed only after the contract was extended for three weeks. The loan had been in process for 6 weeks with the out of state lender who suddenly discovered they could not do the loan because of a minor problem with the borrower's credit report. Three weeks after the deal was transferred to a local lender, me, it closed.
There is an old saying that the best friend you can have is an incompetent enemy. That is why I love to compete against the internet lenders and big banks, that have their mortgage operations centralized and out of state.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
One of the company's top mortgage originators was serene throughout the discussions. I asked her why she was not the least bit concerned. Turns out she had been doing some "secret shopping". She lived in a western state and a lot of her clients and realtors were excited about the prospect of the whole world competing for the borrower's loan. She had a first time buyer come into her office with a number of realistic questions and wanted a quote. She answered all of his questions and gave the borrower a written Good Faith Estimate. The borrower asked if she could compete with the giant nationwide banks. Sly old fox that she is, she invited the client to call and talk to the big national bank from her office on speakerphone. The borrower asked the same questions and noticed the loan officer either did not know the answer or gave incorrect answers. These were simple questions that any first time buyer might ask. Why do I need an inspection when the property is being appraised? Will the mortgage insurance make my payments if I loose my job? Would an FHA or VA loan be better when you consider my circumstances?
The bank loan officer kept talking about how low their rates were. The borrower at this point was smart enough to know the rate on the mortgage is only half the equation. The rate AND closing costs are what matters when comparing mortgages with similar features such as the term of loan. When the Good Faith Estimate arrived the borrower said he felt like he just missed being run over by a stagecoach. He noticed that while the rate was a little lower, the closing costs were much higher. Before considering the time value of money, etc, it would take the borrower almost 14 years to break even. He noted that the product knowledge and analytical skills of the bank loan officer were limited and seemed more interested in writing a loan up quickly, rather than seeing what was best for the borrower. He wisely went local and got a great rate, service, the right mortgage, AND closed on time.
I see the same thing today with internet lenders and big banks. When refinancing a mortgage it is inconvenient for the borrower, and much worse on a purchase transaction. Sometimes borrowers are required to use a bank's mortgage company when the property is owned by a bank. The last deal I saw like this was typical. Underwriting and processing were out of state and customer service was pathetic. Fortunately the loan options for the borrower were limited, so the bank did not have the opportunity to select the wrong mortgage. In this instance the real estate agent and buyer got lucky and the deal actually closed on time. One of the more amusing comments from the out of state lender, after they finally returned a phone call to the listing agent, was that they were sure that if the wire did not arrive in time for the closing, it would not be more than three days late.
I have seen other loans that sat for weeks or months and never closed. A prominent real estate agent told me that he would not accept any purchase offer from a nationally known lender that supposedly specialized in VA loans because of their performance on the last three deals. The first two deals never closed, and the third deal closed only after the contract was extended for three weeks. The loan had been in process for 6 weeks with the out of state lender who suddenly discovered they could not do the loan because of a minor problem with the borrower's credit report. Three weeks after the deal was transferred to a local lender, me, it closed.
There is an old saying that the best friend you can have is an incompetent enemy. That is why I love to compete against the internet lenders and big banks, that have their mortgage operations centralized and out of state.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
Wednesday, June 22, 2011
Check out Denver Weekly Real Estate M...
Check out Denver Weekly Real Estate Market Update titled "Don't Expect Many More Homes On The Market" at http://ow.ly/5nWn3
Check out Denver Weekly Real Estate M...
Check out Denver Weekly Real Estate Market Update titled "Don't Expect Many More Homes On The Market" at http://ow.ly/5nWn3
Check out Denver Weekly Real Estate M...
Check out Denver Weekly Real Estate Market Update titled "Don't Expect Many More Homes On The Market" at http://ow.ly/5nWn3
Tuesday, June 21, 2011
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Time Is Running Out" at http://ow.ly/5mMVo
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Time Is Running Out" at http://ow.ly/5mMVo
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Time Is Running Out" at http://ow.ly/5mMVo
Time Is Running Out. By Dan Polimino.
Can you believe that it's already the end of June? The big 4th of July weekend is next week, and then we really only have one more good month left in the selling season here in Colorado for real estate. I know what you're thinking, "What about August, it's still warm in August." Yes, that is correct, we still have the month of August, but traditionally, August is a slow month in real estate. You see, families are taking last minute vacations and parents are starting to think about getting their kids ready for school. If families were moving to a new school district, then chances are, they did this back in June or July to make sure that they were enrolled in time. While August and the beginning of September may again be slow this year, there is the fall to look forward to. I think that the second best selling season in Colorado is from mid-September to mid-November. So if you have not put your home on the market yet, don't panic; gear up for September.
If your home is still on the market and you are worried that time is running out, let's talk about what we can do to garner some interest.
1) Is it priced right? I find that most people are only about 3-5% off from having the right price. Sometimes, all that it takes is making a 4% adjustment to the price, and some people go from having no offers to multiple offers.
2) What has the feedback been saying about your home? Does it sparkle, and does it look its best? Maybe you need to replace the carpet, instead of giving people a carpet allowance. People can't see allowances for items that need to be replaced or repaired, but they do notice when you say that new carpet has been installed. It's all theater of the mind; make sure that your home has the WOW factor.
3) Put on a big marketing push for the final 30 days and pull out all the stops. This may require you adding some marketing dollars to help your realtor buy some over and above advertising.
Good luck and make the most of this last month.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
If your home is still on the market and you are worried that time is running out, let's talk about what we can do to garner some interest.
1) Is it priced right? I find that most people are only about 3-5% off from having the right price. Sometimes, all that it takes is making a 4% adjustment to the price, and some people go from having no offers to multiple offers.
2) What has the feedback been saying about your home? Does it sparkle, and does it look its best? Maybe you need to replace the carpet, instead of giving people a carpet allowance. People can't see allowances for items that need to be replaced or repaired, but they do notice when you say that new carpet has been installed. It's all theater of the mind; make sure that your home has the WOW factor.
3) Put on a big marketing push for the final 30 days and pull out all the stops. This may require you adding some marketing dollars to help your realtor buy some over and above advertising.
Good luck and make the most of this last month.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
Wednesday, June 15, 2011
Check out Denver Weekly Real Estate M...
Check out Denver Weekly Real Estate Market Update titled "You Will Have Inspection Items" at http://ow.ly/5iuPY
Check out Denver Weekly Real Estate M...
Check out Denver Weekly Real Estate Market Update titled "You Will Have Inspection Items" at http://ow.ly/5iuPY
Check out Denver Weekly Real Estate M...
Check out Denver Weekly Real Estate Market Update titled "You Will Have Inspection Items" at http://ow.ly/5iuPY
Tuesday, June 14, 2011
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Less Inventory" at http://ow.ly/5hori
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Less Inventory" at http://ow.ly/5hori
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Less Inventory" at http://ow.ly/5hori
Less Inventory. By Dan Polimino.
It's not your job to pay attention to MLS statistics, but it is mine. In May, there were still an incredibly low amount of homes on the market. In fact, according to Metrolist, there were only 17,000+ single family homes and condominiums on the market. Again, it's worth repeating how low that is for this time of year. If this were February, that would not surprise me, but since it is June, I am shocked. We should see around 22 or 23 thousand single-family homes and condos on the market about now. So, what's going on? What does this mean for buyers?
1) In most cases, I believe those people that had to sell already have. The rest have decided to stay off the market until conditions improve (BTW conditions have improved).
2) We have not seen the massive influx of foreclosures come on the market that everyone had been predicting. One can speculate that the whole foreclosure paperwork debacle at the end of last year may have held up properties from coming on the market.
3) Some people are getting mortgage relief and are figuring outways to stay in their homes or their personal situation has gotten better and maybe, they can afford to stay there now.
So what does this mean for buyers? First, it means less selection. Less selection means prices either remain stable or go up. Second, it means that buyers cannot delay in making decisions. Over the past three years there was absolutely no hurry to buy because chances are, the buyer's favorite house wasn't going to sell anytime soon. That has changed and we are seeing less and less days on market in most neighborhoods.
In summary, buyers need to be prepared this summer and in many cases, if they find the house they like, they need to pull the trigger right away. I have been involved in more than my fair share of bidding wars this summer. In fact, my buyers have had to compete for listings more this year than anytime in the last four.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
1) In most cases, I believe those people that had to sell already have. The rest have decided to stay off the market until conditions improve (BTW conditions have improved).
2) We have not seen the massive influx of foreclosures come on the market that everyone had been predicting. One can speculate that the whole foreclosure paperwork debacle at the end of last year may have held up properties from coming on the market.
3) Some people are getting mortgage relief and are figuring outways to stay in their homes or their personal situation has gotten better and maybe, they can afford to stay there now.
So what does this mean for buyers? First, it means less selection. Less selection means prices either remain stable or go up. Second, it means that buyers cannot delay in making decisions. Over the past three years there was absolutely no hurry to buy because chances are, the buyer's favorite house wasn't going to sell anytime soon. That has changed and we are seeing less and less days on market in most neighborhoods.
In summary, buyers need to be prepared this summer and in many cases, if they find the house they like, they need to pull the trigger right away. I have been involved in more than my fair share of bidding wars this summer. In fact, my buyers have had to compete for listings more this year than anytime in the last four.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
Friday, June 10, 2011
Thursday, June 9, 2011
Read my latest blog post titled "Will...
Read my latest blog post titled "Will the real FICO score please raise their hand!" at http://ow.ly/5e3lI
Read my latest blog post titled "Will...
Read my latest blog post titled "Will the real FICO score please raise their hand!" at http://ow.ly/5e3lI
Read my latest blog post titled "Will...
Read my latest blog post titled "Will the real FICO score please raise their hand!" at http://ow.ly/5e3lI
Will the real FICO score please raise their hand!
This is the best explanation I have seen on why credit scores vary so widely. Whether a consumer, real estate agent or mortgage professional, this information from Mindy Leisure, Director of Product Development, at Advantage Credit will help you understand why credit scores vary widely. Your questions and comments are always welcome.
Every year you do your due diligence and order copies of your credit reports so you can be sure that everything is in order and you've not been a victim of identity theft. Just for the heck of it you order your scores too. So far, so good - scores in the 700's. Now you're going to apply for a mortgage and the loan officer pulls your credit and your scores are in the 600's?! What happened? Possibly nothing...
Every industry has its own scoring models or scoring method. If you apply for a car, a credit card, a mortgage, even insurance - all use different scoring models and will have different scores, based on different parameters. Personal scores or those you get when you request your own credit report or scores, will almost always be the highest, but they are not used by any industry for any reason. I prefer to call them the "warm and fuzzy scores" to make us feel good about ourselves.
There are some scores that are not even true FICO (Fair Isaac Company) scores. One place you can get your FICO scores, short of a lender requesting it, is through www.myfico.com. But again, you receive personal FICO scores that are not industry driven.
What about www.annualcreditreport.com? This takes you to each individual bureaus website to obtain your credit. Those are FICO scores - right? Not necessarily. When you pull credit though Experian and order your scores you receive a Plus Score which is a score based on an in-house model developed by Experian not by FICO. The same is true for TransUnion; you are receiving an in-house model called a TransRisk score. If you want a FICO score from Trans Union you have to order it through their sister sight which is www.transunioncs.com. Equifax does provide a FICO score; however, they are still personal scores. The only way to obtain your mortgage scores is when you apply for a mortgage loan through a lender, bank, credit union, etc. They are set up with special codes that are used to pull your credit through the mortgage scoring models.
There are many websites that offer "credit scores". Be careful since they are usually not true FICO scores but rather in-house score models, otherwise known as FAKO scores.
We've all seen the rather annoying guitar playing, table waiting gentleman on television who's been a victim of identity theft and is touting "freecreditreport.com". This is an Experian based website and you will receive the Experian Plus score, which is not a FICO score. In addition, it's not free! You have to sign up and pay for their credit monitoring service to receive your "free" credit report. The TransRisk score is provided at "TrueCredit.com" and "PrivacyMatters.com". Both may offer valuable services, but again, they are not true FICO scores.
Be careful of "bankcard scores". Washington Mutual/Providian will send you your score on your monthly statement. This is a true FICO score, however, it is a revolving score which will be different from a mortgage score and they are usually 30 days old by the time the cardholder receives the statement. Scores can change daily so they may not be very accurate. Why so many scores and why even bother to look at your score if they're all going to be different? Each score model has factors that carry different weight depending on what they support. For example, when you apply for a credit card it will look primarily at past credit card history and balances, whereas a mortgage FICO score will lean towards previous or existing mortgage history.
When you sign up for a credit card or through some credit monitoring services you may receive a Vantage Score. This score was developed by the credit repositories (Experian, Equifax and TransUnion) and the score range is from 501-990. However, it is not accepted by Fannie and Freddie or used when applying for a mortgage loan.
Just remember, the most important scores are your FICO scores. If you decide to order your credit scores from any entity, if it just says "credit scores" and it doesn't say FICO you're not getting the real deal.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
Every year you do your due diligence and order copies of your credit reports so you can be sure that everything is in order and you've not been a victim of identity theft. Just for the heck of it you order your scores too. So far, so good - scores in the 700's. Now you're going to apply for a mortgage and the loan officer pulls your credit and your scores are in the 600's?! What happened? Possibly nothing...
Every industry has its own scoring models or scoring method. If you apply for a car, a credit card, a mortgage, even insurance - all use different scoring models and will have different scores, based on different parameters. Personal scores or those you get when you request your own credit report or scores, will almost always be the highest, but they are not used by any industry for any reason. I prefer to call them the "warm and fuzzy scores" to make us feel good about ourselves.
There are some scores that are not even true FICO (Fair Isaac Company) scores. One place you can get your FICO scores, short of a lender requesting it, is through www.myfico.com. But again, you receive personal FICO scores that are not industry driven.
What about www.annualcreditreport.com? This takes you to each individual bureaus website to obtain your credit. Those are FICO scores - right? Not necessarily. When you pull credit though Experian and order your scores you receive a Plus Score which is a score based on an in-house model developed by Experian not by FICO. The same is true for TransUnion; you are receiving an in-house model called a TransRisk score. If you want a FICO score from Trans Union you have to order it through their sister sight which is www.transunioncs.com. Equifax does provide a FICO score; however, they are still personal scores. The only way to obtain your mortgage scores is when you apply for a mortgage loan through a lender, bank, credit union, etc. They are set up with special codes that are used to pull your credit through the mortgage scoring models.
There are many websites that offer "credit scores". Be careful since they are usually not true FICO scores but rather in-house score models, otherwise known as FAKO scores.
We've all seen the rather annoying guitar playing, table waiting gentleman on television who's been a victim of identity theft and is touting "freecreditreport.com". This is an Experian based website and you will receive the Experian Plus score, which is not a FICO score. In addition, it's not free! You have to sign up and pay for their credit monitoring service to receive your "free" credit report. The TransRisk score is provided at "TrueCredit.com" and "PrivacyMatters.com". Both may offer valuable services, but again, they are not true FICO scores.
Be careful of "bankcard scores". Washington Mutual/Providian will send you your score on your monthly statement. This is a true FICO score, however, it is a revolving score which will be different from a mortgage score and they are usually 30 days old by the time the cardholder receives the statement. Scores can change daily so they may not be very accurate. Why so many scores and why even bother to look at your score if they're all going to be different? Each score model has factors that carry different weight depending on what they support. For example, when you apply for a credit card it will look primarily at past credit card history and balances, whereas a mortgage FICO score will lean towards previous or existing mortgage history.
When you sign up for a credit card or through some credit monitoring services you may receive a Vantage Score. This score was developed by the credit repositories (Experian, Equifax and TransUnion) and the score range is from 501-990. However, it is not accepted by Fannie and Freddie or used when applying for a mortgage loan.
Just remember, the most important scores are your FICO scores. If you decide to order your credit scores from any entity, if it just says "credit scores" and it doesn't say FICO you're not getting the real deal.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
Will the real FICO score please raise their hand! Your Voice Blogs Denver YourHub.com http://ping.fm/jMmuV
Wednesday, June 8, 2011
Incredible Tuscan Style Ranch For Sale in Golden, Colorado Your Voice Blogs Golden YourHub.com http://ping.fm/UUbC6
Tuesday, June 7, 2011
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "When Is It Too Much?" at http://ow.ly/5ccfW
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "When Is It Too Much?" at http://ow.ly/5ccfW
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "When Is It Too Much?" at http://ow.ly/5ccfW
When Is It Too Much? By Dan Polimino.
Did you know that in Costa Rica, the contract to buy and sell real estate is just two pages long? In fact, it's not even written by a real estate agent. All contracts in Costa Rica must be written by an attorney and it is quite an easy and painless transaction.
In Australia, the contract to buy and sell real estate is a generally a three-page contract. They don't even do inspections in Australia. They do a walk through, meaning the buyers walk through the house and if it looks good, then they buy it. There is no inspection period, inspection notice, resolution, and the endless stream of paperwork that we have here in the US.
In Colorado, which may be one of the worst states in the country for excessive real estate paperwork, we have a 15-page contract to buy and sell real estate. But that is just the tip of the iceberg. By the time you put a home under contract, including things like disclosures, inspection notices, amendments, addendums and other documents, you could sign well over two to three dozen different documents. Why? What is our problem? Why can't we make this an easy transaction like our foreign friends?
The answer is twofold: 1) We live in an incredibly litigious society (we love to sue each other) and 2) No one trusts anyone. Just last month, I was negotiating an inspection objection when the listing agent said to me, "Why won't your buyers just take our word for it?" I laughed and thought to myself, "Because my buyers don't trust you or anyone else for that matter." I was working with another agent on closing one of my listings and his buyers objected to just about everything you could object to in the real estate contract. They objected to title, to inspection, to CIC's, to survey, and would have objected to due diligence documents had we had any to provide. In fact, I am pretty sure these folks would not be able to go through the Burger King drive through without a team of lawyers and a week of research.
So what is the solution? How we do we make this process better? It seems as though we just keep adding more and more legal documents every year for buyers and sellers to sign. When is it too much? I can't imagine that we can continue to legislate every possible circumstance that COULD go wrong in a real estate contract? I would love to hear your suggestions and I will print the best ideas in my column next.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
In Australia, the contract to buy and sell real estate is a generally a three-page contract. They don't even do inspections in Australia. They do a walk through, meaning the buyers walk through the house and if it looks good, then they buy it. There is no inspection period, inspection notice, resolution, and the endless stream of paperwork that we have here in the US.
In Colorado, which may be one of the worst states in the country for excessive real estate paperwork, we have a 15-page contract to buy and sell real estate. But that is just the tip of the iceberg. By the time you put a home under contract, including things like disclosures, inspection notices, amendments, addendums and other documents, you could sign well over two to three dozen different documents. Why? What is our problem? Why can't we make this an easy transaction like our foreign friends?
The answer is twofold: 1) We live in an incredibly litigious society (we love to sue each other) and 2) No one trusts anyone. Just last month, I was negotiating an inspection objection when the listing agent said to me, "Why won't your buyers just take our word for it?" I laughed and thought to myself, "Because my buyers don't trust you or anyone else for that matter." I was working with another agent on closing one of my listings and his buyers objected to just about everything you could object to in the real estate contract. They objected to title, to inspection, to CIC's, to survey, and would have objected to due diligence documents had we had any to provide. In fact, I am pretty sure these folks would not be able to go through the Burger King drive through without a team of lawyers and a week of research.
So what is the solution? How we do we make this process better? It seems as though we just keep adding more and more legal documents every year for buyers and sellers to sign. When is it too much? I can't imagine that we can continue to legislate every possible circumstance that COULD go wrong in a real estate contract? I would love to hear your suggestions and I will print the best ideas in my column next.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
Wednesday, June 1, 2011
Attractive 35 Acre Colorado Ranch with 25 Acre Ski Lake Your Voice Blogs Denver YourHub.com http://ping.fm/wJi3d
Tuesday, May 31, 2011
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Pre - Inspection" at http://ow.ly/56Da1
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Pre - Inspection" at http://ow.ly/56Da1
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Pre - Inspection" at http://ow.ly/56Da1
Pre - Inspection. By Dan Polimino.
There is no question that inspection is one of those days in the home buying and selling process that is stressful for both parties in the transaction. Buyers are always worried that they are going to find something seriously wrong with the house that they just made an offer on, while sellers are worried that there is something seriously wrong with their house. In most cases, the buyers, sellers, and their respective agents don't breathe a sigh of relief until the inspection period is over and has been resolved.
One way that sellers can relieve their stress ahead of time is by having what I call a pre-inspection done of their home even before they put it on the market. They hire an inspection company to conduct a standard inspection, as if the home was under contract. Then, they take the results and fix all or some of the problems noted in the inspection report. Once done, they can sleep easy that in the event someone makes an offer and their home goes under contract, the inspection period should go smoothly.
In fact, most people can increase the value of their homes by doing a home inspection every two or three years. Let's face it; our homes take a beating inside and out. You may not even be selling your home, but keeping up with the structure every two or three years can halt the damages of nature. I see people all the time scrambling to get their home fixed or in shape just before they sell it. Most people don't even think about maintenance issues until it's time to sell. What if you did it different this time and started working on one or two projects every year, instead of trying to tackle them all at once? It would also help out financially if you spread out the maintenance cost over time instead of being shocked with a big bill right before you need to move.
Many home inspection companies like Home Systems Data will do a home inspection for you, so you can find out which maintenance issues you have now or coming up in the future. They'll look at the roof, the basement for leaks, issues on structural, heating, plumbing, and electrical, and they'll do tests for radon, mold, and termites.
This time around, be prepared, get ahead of the game and increase the value of your home.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
One way that sellers can relieve their stress ahead of time is by having what I call a pre-inspection done of their home even before they put it on the market. They hire an inspection company to conduct a standard inspection, as if the home was under contract. Then, they take the results and fix all or some of the problems noted in the inspection report. Once done, they can sleep easy that in the event someone makes an offer and their home goes under contract, the inspection period should go smoothly.
In fact, most people can increase the value of their homes by doing a home inspection every two or three years. Let's face it; our homes take a beating inside and out. You may not even be selling your home, but keeping up with the structure every two or three years can halt the damages of nature. I see people all the time scrambling to get their home fixed or in shape just before they sell it. Most people don't even think about maintenance issues until it's time to sell. What if you did it different this time and started working on one or two projects every year, instead of trying to tackle them all at once? It would also help out financially if you spread out the maintenance cost over time instead of being shocked with a big bill right before you need to move.
Many home inspection companies like Home Systems Data will do a home inspection for you, so you can find out which maintenance issues you have now or coming up in the future. They'll look at the roof, the basement for leaks, issues on structural, heating, plumbing, and electrical, and they'll do tests for radon, mold, and termites.
This time around, be prepared, get ahead of the game and increase the value of your home.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
Friday, May 27, 2011
Thursday, May 26, 2011
Check out my latest blog entry titled...
Check out my latest blog entry titled "Two FHA mortgages at the same time?" at http://ow.ly/53BMV
Check out my latest blog entry titled...
Check out my latest blog entry titled "Two FHA mortgages at the same time?" at http://ow.ly/53BMV
Check out my latest blog entry titled...
Check out my latest blog entry titled "Two FHA mortgages at the same time?" at http://ow.ly/53BMV
Two FHA mortgages at the same time?
Is it possible to have two FHA mortgages without jumping through a lot of hoops? Maybe. Under the old rules HUD required: the homes to be a primary residence and at least 50 miles apart, an increase in family size, or for medical reasons such as the homeowner was currently living in a two story and needed a ranch style residence because they could not handle the stairs. The reason for this was simple. HUD did not want to see people "empire build" with FHA mortgages.
The new guidelines state that a borrower can purchase an FHA-insured primary residence, then rent out that primary residence and re-establish another primary residence after 12 consecutive months. They can purchase a second primary FHA insured primary residence without meeting the relocation or other tests. Remember that a borrower must occupy a property for at least one year when they utilize an FHA mortgage, unless there are unforeseen circumstances beyond the borrower's control. An example would be some one who takes out a FHA mortgage for purchase or refinance and two months later finds out their employer is relocating out of state.
A perfect example of who this will help is a family who wanted to change school districts and be closer to mass transit. They were "upside down" on their existing home by over $30,000 and did not want to ruin their credit by doing a short sale. They rented out their former home and leased a new one. Their existing residence has a FHA mortgage. Under the old rules they would have had to wait until they could come up with a higher down payment for a conventional mortgage, which would take a long time. Under the new rules, they only need to show they have not occupied the property in the last 12 months. I should mention that the family that rented their house was smart enough to obtain professional advice about leasing out the former home. If you do not have experience or education in property management, you should hire a professional to lease your property. For every success story I hear about amateurs who play landlord, and get lucky, I hear at least four horror stories, often with the property ending up in foreclosure.
This new rule is a good example of common sense that benefits both tenants and owners. The benefit to the tenants is that their landlord does not have to displace them to obtain a new FHA loan. Interested in your thoughts and comments, as always.
Best, Chip
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Colorado Mortgage Broker License # 100019831
NMLS# 378621
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
The new guidelines state that a borrower can purchase an FHA-insured primary residence, then rent out that primary residence and re-establish another primary residence after 12 consecutive months. They can purchase a second primary FHA insured primary residence without meeting the relocation or other tests. Remember that a borrower must occupy a property for at least one year when they utilize an FHA mortgage, unless there are unforeseen circumstances beyond the borrower's control. An example would be some one who takes out a FHA mortgage for purchase or refinance and two months later finds out their employer is relocating out of state.
A perfect example of who this will help is a family who wanted to change school districts and be closer to mass transit. They were "upside down" on their existing home by over $30,000 and did not want to ruin their credit by doing a short sale. They rented out their former home and leased a new one. Their existing residence has a FHA mortgage. Under the old rules they would have had to wait until they could come up with a higher down payment for a conventional mortgage, which would take a long time. Under the new rules, they only need to show they have not occupied the property in the last 12 months. I should mention that the family that rented their house was smart enough to obtain professional advice about leasing out the former home. If you do not have experience or education in property management, you should hire a professional to lease your property. For every success story I hear about amateurs who play landlord, and get lucky, I hear at least four horror stories, often with the property ending up in foreclosure.
This new rule is a good example of common sense that benefits both tenants and owners. The benefit to the tenants is that their landlord does not have to displace them to obtain a new FHA loan. Interested in your thoughts and comments, as always.
Best, Chip
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Colorado Mortgage Broker License # 100019831
NMLS# 378621
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
Wednesday, May 25, 2011
Tuesday, May 24, 2011
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Moving the Meter" at http://ow.ly/51RW2
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Moving the Meter" at http://ow.ly/51RW2
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Moving the Meter" at http://ow.ly/51RW2
Moving the Meter. By Dan Polimino.
"Dan, my house isn't selling and I am not sure what to do for us to get an offer."
I hear this all the time from sellers. There is frustration in their voices, and with good reason. This is a difficult market to sell a home as everyone already knows, so I usually ask them a question back and it is simply this, "What are you doing to move the meter?" Are you making adjustments and changes in order to sell your home, or do you keep on doing the same thing over and over again, expecting a different result? Let's take a look at some things that all sellers should consider to make a difference in selling their home today.
1. Price reductions. I know that every seller hates to hear this and thinks that's all Realtors want to do, but it moves the meter more than anything else. You cannot run away from the fact that this is a price driven market and not much else matters right now. You must be presenting your home as a VALUE and a compelling VALUE. So much so that you are almost daring a buyer to make an offer.
2. How does it show? Have you received any feedback that your home is not showing well? If so, make those corrections if possible. If you are not sure if your home shows well, have some friends, family, or other Realtors walk through and give you an honest critique.
3. Marketing. Sit with your agent and go over all the marketing that has been done up to this point. What has been effective and what has not produced any results? Remember, marketing is supposed to produce showings, and then showings produce offers. You may need to re-budget your marketing, taking money away from endeavors that are not producing fruit and spending it on strategies that are resulting in showings. You may also need to kick in some dollars of your own (out-of-pocket) to help your realtor with marketing costs.
If you have done all of the above and still there are no offers for your home there is a good chance that there are no buyers for your price range and product at this time. At any time if you need more help, ideas, or advice, feel free to contact me at the information below.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
I hear this all the time from sellers. There is frustration in their voices, and with good reason. This is a difficult market to sell a home as everyone already knows, so I usually ask them a question back and it is simply this, "What are you doing to move the meter?" Are you making adjustments and changes in order to sell your home, or do you keep on doing the same thing over and over again, expecting a different result? Let's take a look at some things that all sellers should consider to make a difference in selling their home today.
1. Price reductions. I know that every seller hates to hear this and thinks that's all Realtors want to do, but it moves the meter more than anything else. You cannot run away from the fact that this is a price driven market and not much else matters right now. You must be presenting your home as a VALUE and a compelling VALUE. So much so that you are almost daring a buyer to make an offer.
2. How does it show? Have you received any feedback that your home is not showing well? If so, make those corrections if possible. If you are not sure if your home shows well, have some friends, family, or other Realtors walk through and give you an honest critique.
3. Marketing. Sit with your agent and go over all the marketing that has been done up to this point. What has been effective and what has not produced any results? Remember, marketing is supposed to produce showings, and then showings produce offers. You may need to re-budget your marketing, taking money away from endeavors that are not producing fruit and spending it on strategies that are resulting in showings. You may also need to kick in some dollars of your own (out-of-pocket) to help your realtor with marketing costs.
If you have done all of the above and still there are no offers for your home there is a good chance that there are no buyers for your price range and product at this time. At any time if you need more help, ideas, or advice, feel free to contact me at the information below.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
Sunday, May 22, 2011
What is Selling And Where In Denver Real Estate Your Voice Blogs Denver YourHub.com http://ping.fm/fmVFF
Your Dream Home. By Dan Polimino.
There really are some important factors that everyone should consider if you want to find your dream home. Here is what I think are the top six things to consider when starting your search.
* Neighborhood. This seems obvious, but what I like to tell buyers is that when they first start thinking about moving, drive around some neighborhoods and get a feel of what looks good to you. Then take that knowledge to the internet to find out more.
* Children. If you have kids, how important is it for you to be in a certain school district? If so, that may limit the neighborhoods in which to find a dream home.
* Square feet. Some neighborhoods are known for large homes while some have small bungalow style homes. In recent years, the trend has been to go smaller, not bigger, so make sure that the neighborhood meets your square footage requirement.
* Finishes. They range widely so make sure that you know what you are looking for inside. If you are like us and have allergies, you may want to avoid homes with carpet and only look at ones with hardwood floors.
* Amenities. Remember that you are not only buying the home, but you are also buying the neighborhood. Amenities like a community pool, walking trails, shopping, and entertainment may all be important so make sure that you check it out.
* Landscaping. Some people want a home with a big backyard and plenty of trees. While that can be nice, that can also be expensive and time consuming to maintain. Make sure that you know what you are getting into here.
Finding your dream home should be fun. Don't make it a job; enjoy the journey and explore. I hope that you find your dream home and feel free to contact me with questions or for help.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
* Neighborhood. This seems obvious, but what I like to tell buyers is that when they first start thinking about moving, drive around some neighborhoods and get a feel of what looks good to you. Then take that knowledge to the internet to find out more.
* Children. If you have kids, how important is it for you to be in a certain school district? If so, that may limit the neighborhoods in which to find a dream home.
* Square feet. Some neighborhoods are known for large homes while some have small bungalow style homes. In recent years, the trend has been to go smaller, not bigger, so make sure that the neighborhood meets your square footage requirement.
* Finishes. They range widely so make sure that you know what you are looking for inside. If you are like us and have allergies, you may want to avoid homes with carpet and only look at ones with hardwood floors.
* Amenities. Remember that you are not only buying the home, but you are also buying the neighborhood. Amenities like a community pool, walking trails, shopping, and entertainment may all be important so make sure that you check it out.
* Landscaping. Some people want a home with a big backyard and plenty of trees. While that can be nice, that can also be expensive and time consuming to maintain. Make sure that you know what you are getting into here.
Finding your dream home should be fun. Don't make it a job; enjoy the journey and explore. I hope that you find your dream home and feel free to contact me with questions or for help.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
Thursday, May 12, 2011
With a 5% down payment, is FHA still the best way? http://www.trulia.com/blog/dan_polimino/2011/05/with_a_5_down_payment_is_fha_still_the_best_way
With a 5% down payment, is FHA still the best way?
With a 5% down payment, is FHA still the best way? Maybe. As always, your choice on a mortgage depends on your unique personal situation. I detest rules of thumb and broad generalities when it comes to what type of mortgage is best for a borrower. One size does not fit all. A mortgage should be custom tailored for a borrower like a fine suit.
A conventional mortgage could be a better deal for a borrower than a FHA mortgage if the borrower is making a 5% down payment. If a borrower has or only wants to make the lowest possible down payment, currently FHA is a better choice as it allows a 3.5% down payment. However, this may be changing. Many industry analysts predict that FHA will be raising the down payment to 5% in the near future. This is the result of the Obama administration "white paper" on housing reform that was released in February 2011, that called for higher down payments across the board. Even though VA loans, which require no down payment, have the lowest default rates now, policy makers want to see borrowers have "more skin in the game".
The key is determining if the borrower would qualify for the conventional mortgage with private mortgage insurance. Conventional loans, requiring mortgage insurance, have far more stringent underwriting standards than FHA mortgages. Remember that a high ratio conventional mortgage is approved contingent upon the borrower obtaining private mortgage insurance. Many clients who would easily qualify for FHA will not fit into the private insurer's more stringent underwriting model. These requirements include higher credit scores, lower debt-to-income limits, and higher cash reserves.
Your mortgage consultant should analyze your situation to determine which choices are available for you. If you are one of the fortunate few who may go in either direction, a conventional mortgage with private mortgage insurance may be a cheaper alternative. As always, examine what your options are and then do the numbers.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Colorado Mortgage Broker License # 100019831
NMLS# 378621
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
A conventional mortgage could be a better deal for a borrower than a FHA mortgage if the borrower is making a 5% down payment. If a borrower has or only wants to make the lowest possible down payment, currently FHA is a better choice as it allows a 3.5% down payment. However, this may be changing. Many industry analysts predict that FHA will be raising the down payment to 5% in the near future. This is the result of the Obama administration "white paper" on housing reform that was released in February 2011, that called for higher down payments across the board. Even though VA loans, which require no down payment, have the lowest default rates now, policy makers want to see borrowers have "more skin in the game".
The key is determining if the borrower would qualify for the conventional mortgage with private mortgage insurance. Conventional loans, requiring mortgage insurance, have far more stringent underwriting standards than FHA mortgages. Remember that a high ratio conventional mortgage is approved contingent upon the borrower obtaining private mortgage insurance. Many clients who would easily qualify for FHA will not fit into the private insurer's more stringent underwriting model. These requirements include higher credit scores, lower debt-to-income limits, and higher cash reserves.
Your mortgage consultant should analyze your situation to determine which choices are available for you. If you are one of the fortunate few who may go in either direction, a conventional mortgage with private mortgage insurance may be a cheaper alternative. As always, examine what your options are and then do the numbers.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Colorado Mortgage Broker License # 100019831
NMLS# 378621
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
With a 5% down payment, is FHA still the best way? Your Voice Blogs Denver YourHub.com http://denver.yourhub.com/Denver/Blogs/Your-Voice/Blog~981575.aspx
With a 5% down payment, is FHA still the best way? http://activerain.com/blogsview/2292037/with-a-5-down-payment-is-fha-still-the-best-way-
Tuesday, May 10, 2011
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "M.A.R.S" at http://ow.ly/4RfXg
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "M.A.R.S" at http://ow.ly/4RfXg
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "M.A.R.S" at http://ow.ly/4RfXg
M.A.R.S. By Dan Polimino.
Recently, the Federal Trade Commission came out with the Mortgage Assistance Relief Services Rule, also known as the M.A.R.S rule for real estate agents. The intent of the rule is for more disclosures to sellers involved in a short sale transaction. They now require an additional addendum to be present with the listing agreement on all short sale transactions. This addendum actually supersedes the listing agreement. In short, it tells sellers what the total cost of an agent's services are, that the seller may stop using an agent at any time, that the broker is not associated with the government or their lender, and that their lender may not agree to change the terms of their mortgage. It also goes on to say that the real estate agents are prohibited from receiving ANY upfront compensation from the seller and may ONLY receive compensation when the short sale transaction successfully closes.
While all of this seems like a good idea, on the surface, the FTC has really missed the mark and actually hurt consumers more than they have helped them, and here is why. Since this new addendum supersedes the listing agreement, that means Realtors have no contract with the sellers. Also, according to this addendum, sellers can stop using a realtor's services at any time. Now, why would an agent spend their good time, effort, and money while knowing full well that they could be dropped by the seller at any time? That's the whole reason for a listing agreement: so that agents don't spend a lot of time, money, and effort with no promise of getting paid. This actually will discourage agents from working with short sale sellers.
Next, the question becomes: How many disclosures do we really need for consumers? Right now, we do a short sale addendum for every listing and the buyers of the property must sign it as well. It must be listed in the MLS as a short sale and all advertising must say short sale. Does the FTC really think that yet one more disclosure is going to make a difference? Listen, short sales are hard enough and they are bogged down with excessive paperwork. Let's not make it harder for agents to help consumers. In fact, I see agents all the time say, "I am done with short sales. They are not worth the time and effort." When Realtors stop wanting to do short sales because the process has become too arduous, there is only one person hurt in this equation, and that's the consumer.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
While all of this seems like a good idea, on the surface, the FTC has really missed the mark and actually hurt consumers more than they have helped them, and here is why. Since this new addendum supersedes the listing agreement, that means Realtors have no contract with the sellers. Also, according to this addendum, sellers can stop using a realtor's services at any time. Now, why would an agent spend their good time, effort, and money while knowing full well that they could be dropped by the seller at any time? That's the whole reason for a listing agreement: so that agents don't spend a lot of time, money, and effort with no promise of getting paid. This actually will discourage agents from working with short sale sellers.
Next, the question becomes: How many disclosures do we really need for consumers? Right now, we do a short sale addendum for every listing and the buyers of the property must sign it as well. It must be listed in the MLS as a short sale and all advertising must say short sale. Does the FTC really think that yet one more disclosure is going to make a difference? Listen, short sales are hard enough and they are bogged down with excessive paperwork. Let's not make it harder for agents to help consumers. In fact, I see agents all the time say, "I am done with short sales. They are not worth the time and effort." When Realtors stop wanting to do short sales because the process has become too arduous, there is only one person hurt in this equation, and that's the consumer.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
Thursday, May 5, 2011
Check out my latest blog entry titled...
Check out my latest blog entry titled "Personal Property on the Sales Contract?" at http://ow.ly/4NUfK
Check out my latest blog entry titled...
Check out my latest blog entry titled "Personal Property on the Sales Contract?" at http://ow.ly/4NUfK
Personal Property on the Sales Contract?
Why don't lenders like personal property included in a purchase mortgage? The primary reason is that lenders are lending on the appraised value of the residential real estate. Another reason is because including personal property may also be construed as an inducement to purchase, which is prohibited by underwriting guidelines. Some types of personal property may be included. Examples are ranges, refrigerators, stoves, washer and dryers, and carpet. Examples of personal property that are specifically excluded are furniture, cars, boats, and riding lawnmowers. The value of the prohibited property would need to be deducted from the purchase price before the loan to value is calculated.
I know that some people will criticize underwriters for trying to kill a deal. We have all heard the snarky jokes about mortgage underwriters. What is the difference between an underwriter and a rattlesnake? Compassion. Why are underwriter's hearts in high demand for a transplant? Because they have never been used. Before we criticize the underwriters for overwriting, please consider this: mortgage underwriters are like referees. They implement a set of rules they have no control over. Their personal feelings are irrelevant. If a mortgage does not meet all of the specifications, the mortgage company will have to buy the loan back, which is a nightmare, and could cost the underwriter their job.
Remember, in this day and age, nothing slips by. Creativity is great, as long as it follows the rules.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Colorado Mortgage Broker License # 100019831
NMLS# 378621
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
I know that some people will criticize underwriters for trying to kill a deal. We have all heard the snarky jokes about mortgage underwriters. What is the difference between an underwriter and a rattlesnake? Compassion. Why are underwriter's hearts in high demand for a transplant? Because they have never been used. Before we criticize the underwriters for overwriting, please consider this: mortgage underwriters are like referees. They implement a set of rules they have no control over. Their personal feelings are irrelevant. If a mortgage does not meet all of the specifications, the mortgage company will have to buy the loan back, which is a nightmare, and could cost the underwriter their job.
Remember, in this day and age, nothing slips by. Creativity is great, as long as it follows the rules.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Colorado Mortgage Broker License # 100019831
NMLS# 378621
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
Wednesday, May 4, 2011
Check out Denver Real Estate Market U...
Check out Denver Real Estate Market Update titled "The Denver Real Estate Market Is Hot" at http://ow.ly/4N9oV
Check out Denver Real Estate Market U...
Check out Denver Real Estate Market Update titled "The Denver Real Estate Market Is Hot" at http://ow.ly/4N9oV
Check out Denver Real Estate Market U...
Check out Denver Real Estate Market Update titled "The Denver Real Estate Market Is Hot" at http://ow.ly/4N9oV
Tuesday, May 3, 2011
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Location vs. Price" at http://ow.ly/4Me7H
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Location vs. Price" at http://ow.ly/4Me7H
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Location vs. Price" at http://ow.ly/4Me7H
Location vs. Price. By Dan Polimino.
It has been one of those long standing dilemmas in real estate...do you buy location or do you buy price? In Colorado, you can get some amazing deals on homes that sit on the outskirts of the city. In areas like Parker, Castle Rock, and Centennial, you can buy some big, updated, or newer homes on nice lots for 60, 70, and 80 dollars per finished square foot. Those are some pretty amazing prices even in this market. Since this is a price driven market, this poses a tough decision for a lot of out-of-town buyers. In most cases, they would prefer to be a little closer to town. There is no question that having a better location can be a benefit, but you may also pay more and have a smaller home just to have a better location. So, what do you do in today's economic environment?
First, it's important to fully understand your lifestyle, short and long term plans. If you can't stand being so close to your neighbor that you could hand him a hotdog across the fence from your deck, then maybe buying close in isn't such a great idea. If you need space and wide open views, then buying on the outskirts is a must. This is really all about what type of lifestyle fits our personality.
Second, it's also important to point out that real estate is not a good short term investment at this time. It really doesn't matter if you buy in town or on the outskirts if you are planning on moving in the next 12-24 months plan on taking a loss on the re-sale of the home. If you have even an inkling that you will not be in the house in the next two years, don't buy; rent.
Finally, if we have to answer the debate about price vs. location, I would always lean towards buying location over price. It's been one of the basic tenants of real estate that if you buy a good location, you'll never go wrong. With that said, I also understand that there are a lot more factors that go into the decision making process such as "what a buyer can actually afford." If you do decide on the price route, make sure that you buy a great location in that neighborhood.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
First, it's important to fully understand your lifestyle, short and long term plans. If you can't stand being so close to your neighbor that you could hand him a hotdog across the fence from your deck, then maybe buying close in isn't such a great idea. If you need space and wide open views, then buying on the outskirts is a must. This is really all about what type of lifestyle fits our personality.
Second, it's also important to point out that real estate is not a good short term investment at this time. It really doesn't matter if you buy in town or on the outskirts if you are planning on moving in the next 12-24 months plan on taking a loss on the re-sale of the home. If you have even an inkling that you will not be in the house in the next two years, don't buy; rent.
Finally, if we have to answer the debate about price vs. location, I would always lean towards buying location over price. It's been one of the basic tenants of real estate that if you buy a good location, you'll never go wrong. With that said, I also understand that there are a lot more factors that go into the decision making process such as "what a buyer can actually afford." If you do decide on the price route, make sure that you buy a great location in that neighborhood.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
Wednesday, April 27, 2011
Just In Time For Spring Your Own Colorado Ranch Your Voice Blogs Denver YourHub.com http://ping.fm/SrskI
Tuesday, April 26, 2011
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "5 Deal Killers" at http://ow.ly/4Hf8R
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "5 Deal Killers" at http://ow.ly/4Hf8R
5 Deal Killers. By Dan Polimino.
We just started the selling season four weeks ago and the market has been heating up nicely. Sellers are moving their properties and buyers are getting their deals. Buyers still have the upper hand; so today, I want to talk about five things that can for sure kill an opportunity for you to sell your home.
* The home shows dirty. This is probably the number one deal killer. If the buyer gets the feeling that you don't take good care of the home, forget about selling it anytime soon. In most cases, the buyer will walk out without even finishing the tour. Homes need to be "show ready." That means: freshen up the paint, clean up the marks on the walls, carpets are clean or replaced, everything is put away, lights are on, and it is clean, clean, and clean.
* Bad photos. This could easily be the number one turn off for buyers and may even prevent you from getting a showing. Make sure that you hire professionals to take pictures of the home. Also, make sure that you have taken the time to get the home ready for picture day. A good real estate photographer will know how to get the most out of your home with photos. If the pictures look bad online, there is little chance that anyone will want to make the effort to go out and see your home in person.
* Misleading information. If there is information about your home that is being circulated on the internet or ads that are incorrect or misleading, it could be a big deal killer. People need to feel like they can trust you, and if you are putting out incorrect or bad information, it raises a red flag and scares buyers away.
* Seller has too high expectations. There is no question that we, as home owners, all have a high opinion of our homes. We also need to weigh that against good sales data which should not be ignored. An unrealistic purchase price will ensure that your property stays on the market for a good long time. Sellers also need to be realistic with their expectations once the home goes under contract. It would be foolish to think that you are going to come away unscathed during the inspection process.
* Horrendous home improvements. You'll notice that I did not say "bad home improvements" because "bad" would be ok and is generally fixable. I see horrendous home improvements all the time that fall into the category of "what were they thinking," like a total concrete back yard. These can be really quick deal killers because some buyers can't see past the problem and visualize a better result.
Of course, the list is not limited to just five deal killers, but those are and should be the top five. I am sure that you can come up with a few on your own and I would love to hear them.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
* The home shows dirty. This is probably the number one deal killer. If the buyer gets the feeling that you don't take good care of the home, forget about selling it anytime soon. In most cases, the buyer will walk out without even finishing the tour. Homes need to be "show ready." That means: freshen up the paint, clean up the marks on the walls, carpets are clean or replaced, everything is put away, lights are on, and it is clean, clean, and clean.
* Bad photos. This could easily be the number one turn off for buyers and may even prevent you from getting a showing. Make sure that you hire professionals to take pictures of the home. Also, make sure that you have taken the time to get the home ready for picture day. A good real estate photographer will know how to get the most out of your home with photos. If the pictures look bad online, there is little chance that anyone will want to make the effort to go out and see your home in person.
* Misleading information. If there is information about your home that is being circulated on the internet or ads that are incorrect or misleading, it could be a big deal killer. People need to feel like they can trust you, and if you are putting out incorrect or bad information, it raises a red flag and scares buyers away.
* Seller has too high expectations. There is no question that we, as home owners, all have a high opinion of our homes. We also need to weigh that against good sales data which should not be ignored. An unrealistic purchase price will ensure that your property stays on the market for a good long time. Sellers also need to be realistic with their expectations once the home goes under contract. It would be foolish to think that you are going to come away unscathed during the inspection process.
* Horrendous home improvements. You'll notice that I did not say "bad home improvements" because "bad" would be ok and is generally fixable. I see horrendous home improvements all the time that fall into the category of "what were they thinking," like a total concrete back yard. These can be really quick deal killers because some buyers can't see past the problem and visualize a better result.
Of course, the list is not limited to just five deal killers, but those are and should be the top five. I am sure that you can come up with a few on your own and I would love to hear them.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
Thursday, April 21, 2011
Easier to buy than rent?
Is it easier to buy than to rent? Maybe. I know that some people who would not qualify for a mortgage have no choice except to rent. Recently I was surprised to discover that some people who could qualify to buy a home were having difficulty renting. The reason is simple. Vacancy rates in the Denver metro are approaching record lows, and some landlords are setting very high standards for renters.
A real estate agent I know told me about renting a single family home in South Jefferson County last week. Nice home, fairly priced, but nothing exceptional about it. She was inundated with qualified applicants. One of the first prospective renters was a couple who had a medical bankruptcy that was discharged over five years ago. They had re-established their credit, had excellent references from previous landlords, good job history, and cash in the bank. The owner of the property decided that in this landlord's market he wanted perfection. Based upon what I was told, the couple would qualify for a FHA mortgage.
The owner of a prominent property management firm mentioned last week that his firm was receiving three hundred to six hundred calls a day. Vacancy rates are tightening up for a variety of reasons. New construction has slowed dramatically, people are moving into the Denver Metro area, and we all know about the foreclosure mess. What people do not consider is that when a house is foreclosed on, the former occupants need a place to live right now. A foreclosed property may sit vacant for months or years before it is back on the market for either owner occupants or renters. Both renters and landlords are reporting double digit increases in rent. Down the road, I see landlords selling their properties when the market turns around. This will only tighten the rental market further.
If you going to be in a property for less than three years, you are probably better off renting. Longer than that, you should consider buying now. Landlords are not known for their generosity. When prices go back up the fact that you were a wonderful tenant will not matter when compared to how much the landlord can raise the rent or cash out by selling.
Let me know if you need a referral for a good: contractor or tradesmen, attorney, accountant, property manager, etc. I have been blessed to know a lot of great people who do quality work for a fair price. I sometimes know who to avoid, like the glass company that improperly installed a shower enclosure at one of my properties. They forgot to install an expansion channel and then told me how tempered glass implodes all the time. They graciously offered to fix the problem for $725. A reputable company replaced the enclosure for $417. We live and learn, and give a dog only one bite.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Colorado Mortgage Broker License # 100019831
NMLS# 378621
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
A real estate agent I know told me about renting a single family home in South Jefferson County last week. Nice home, fairly priced, but nothing exceptional about it. She was inundated with qualified applicants. One of the first prospective renters was a couple who had a medical bankruptcy that was discharged over five years ago. They had re-established their credit, had excellent references from previous landlords, good job history, and cash in the bank. The owner of the property decided that in this landlord's market he wanted perfection. Based upon what I was told, the couple would qualify for a FHA mortgage.
The owner of a prominent property management firm mentioned last week that his firm was receiving three hundred to six hundred calls a day. Vacancy rates are tightening up for a variety of reasons. New construction has slowed dramatically, people are moving into the Denver Metro area, and we all know about the foreclosure mess. What people do not consider is that when a house is foreclosed on, the former occupants need a place to live right now. A foreclosed property may sit vacant for months or years before it is back on the market for either owner occupants or renters. Both renters and landlords are reporting double digit increases in rent. Down the road, I see landlords selling their properties when the market turns around. This will only tighten the rental market further.
If you going to be in a property for less than three years, you are probably better off renting. Longer than that, you should consider buying now. Landlords are not known for their generosity. When prices go back up the fact that you were a wonderful tenant will not matter when compared to how much the landlord can raise the rent or cash out by selling.
Let me know if you need a referral for a good: contractor or tradesmen, attorney, accountant, property manager, etc. I have been blessed to know a lot of great people who do quality work for a fair price. I sometimes know who to avoid, like the glass company that improperly installed a shower enclosure at one of my properties. They forgot to install an expansion channel and then told me how tempered glass implodes all the time. They graciously offered to fix the problem for $725. A reputable company replaced the enclosure for $417. We live and learn, and give a dog only one bite.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Colorado Mortgage Broker License # 100019831
NMLS# 378621
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
Water Skiing Property for Sale at Larkspur, CO Your Voice Blogs Denver YourHub.com http://ping.fm/oo4wY
Hot Trends In Bathroom Remodeling. By Dan Polimino. Your Voice Blogs Denver YourHub.com http://ping.fm/Tv0Ui
Tuesday, April 19, 2011
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Hot Trends In Bathroom Remodeling" at http://ow.ly/4Dly4
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Hot Trends In Bathroom Remodeling" at http://ow.ly/4Dly4
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Hot Trends In Bathroom Remodeling" at http://ow.ly/4Dly4
Hot Trends In Bathroom Remodeling. By Dan Polimino.
http://ping.fm/Zl9Jd So, what is it that people want when it comes to bathroom remodeling? Here is a short list that I complied while visiting some home and garden shows this past spring:
* A spa-like atmosphere. In tough economic times, fewer people have the opportunity to visit a spa, but if you made your master bathroom into a spa-like atmosphere, that would create some value in the home. Some surveys show that this is a high priority on a buyer's wish list. After all, if you can't go to the spa, it would be nice to have the spa in your own home.
* Heated Floors. This rated high on what people want in a bathroom. Since it's not very expensive to install, why go another day walking on a cold floor?
* Luxury tile. Spare no expense here! What is on the floor matters - like travertine, marble, granite, or other solid surfaces. A great looking tile floor will catch everyone's attention.
* Neutral colors. Colors change and different trends in shades come and go, but the latest, most popular colors that people want to see are neutral taupes and grays.
* More hot water, not less. Some people swear by tankless water heaters while others still like the good old fashioned hot water tank. Whatever products you choose, just make sure that there is plenty of hot water to go around. Don't get a hot water tank that will just get you by, and if you go tankless, make sure it can handle a large load.
* Plenty of space. Pedestal sinks are nice and can be attractive, but people want space and more space. So think about having a large vanity with plenty of storage space and drawers underneath.
* A linen closet. This seems to be a must because it fits in the same category as space and more space. People want a closet in their bathroom to store the towels, linens and other items. Moreover, they want it separate from their clothes closet.
* Nice accessories. Like flat panel TV's, heated towel racks, designer light fixtures, mirrors, jetted tubs. All these little things can add up and really make your master bath look like a "retreat" rather than just a bath.
Finally, it looks as though granite may start being pushed to the sideline. I have had more than one designer tell me that granite is out and less porous surfaces like quartz and soapstone are in. It seems that it's getting harder and harder to stay up-to-date with the changes.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
* A spa-like atmosphere. In tough economic times, fewer people have the opportunity to visit a spa, but if you made your master bathroom into a spa-like atmosphere, that would create some value in the home. Some surveys show that this is a high priority on a buyer's wish list. After all, if you can't go to the spa, it would be nice to have the spa in your own home.
* Heated Floors. This rated high on what people want in a bathroom. Since it's not very expensive to install, why go another day walking on a cold floor?
* Luxury tile. Spare no expense here! What is on the floor matters - like travertine, marble, granite, or other solid surfaces. A great looking tile floor will catch everyone's attention.
* Neutral colors. Colors change and different trends in shades come and go, but the latest, most popular colors that people want to see are neutral taupes and grays.
* More hot water, not less. Some people swear by tankless water heaters while others still like the good old fashioned hot water tank. Whatever products you choose, just make sure that there is plenty of hot water to go around. Don't get a hot water tank that will just get you by, and if you go tankless, make sure it can handle a large load.
* Plenty of space. Pedestal sinks are nice and can be attractive, but people want space and more space. So think about having a large vanity with plenty of storage space and drawers underneath.
* A linen closet. This seems to be a must because it fits in the same category as space and more space. People want a closet in their bathroom to store the towels, linens and other items. Moreover, they want it separate from their clothes closet.
* Nice accessories. Like flat panel TV's, heated towel racks, designer light fixtures, mirrors, jetted tubs. All these little things can add up and really make your master bath look like a "retreat" rather than just a bath.
Finally, it looks as though granite may start being pushed to the sideline. I have had more than one designer tell me that granite is out and less porous surfaces like quartz and soapstone are in. It seems that it's getting harder and harder to stay up-to-date with the changes.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
Wednesday, April 13, 2011
Now Dropped by 50%. Over A 2 million In Price Reductions. Your Voice Blogs Castle Rock YourHub.com http://denver.yourhub.com/CastleRock/Blogs/Your-Voice/Blog~970381.aspx
Now Dropped by 50%. Over A 2 million In Price Reductions. http://www.trulia.com/blog/dan_polimino/2011/04/now_dropped_by_50_over_a_2_million_in_price_reductions
Now Dropped by 50%. Over A 2 million In Price Reductions. http://activerain.com/blogsview/2243073/now-dropped-by-50-over-a-2-million-in-price-reductions-
Tuesday, April 12, 2011
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "You Cannot Fool Today's Buyers" at http://ow.ly/4ysXh
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "You Cannot Fool Today's Buyers" at http://ow.ly/4ysXh
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "You Cannot Fool Today's Buyers" at http://ow.ly/4ysXh
You Cannot Fool Today's Buyers. By Dan Polimino.
Story #1
A friend was telling me a story about buying a used car from a dealer. The car had the Inspected and Certified Used Car sticker on it, and the dealership represented that the car was in good working order. Nonetheless, the buyers wanted to have it checked out by their mechanic before putting down the money and driving it off the lot. Upon inspection, the mechanic told these would-be buyers that the car needed a new fuel pump as well as a new timing belt.
The buyers went back to the dealership and told them what the mechanic found, but the dealership was not cooperative. They disagreed with the mechanic's assessment and they refused to replace the items before selling the car. Obviously, the buyers did not go through with the purchase.
Story #2
Some friends wanted to go on a vacation and they planned to book it online. The pictures and reviews of the hotel were fantastic, but since they had never been to this area before, they wanted to do a little extra checking. They decided to use Oyster.com which is like the "travel police." They check out all the claims that a resort may be making, they look at potentially fraudulent reviews, and they go to the resorts and take real pictures of the rooms. Then you can compare the real pictures from Oyster to the pictures that the resort is advertising on their website. Good thing that they did their homework because the real pictures did not look anything like the website's advertised photos.
Story #3
A friend was selling his home and did some fix up work. I asked him if he replaced the roof. He said, "No, if it comes up on inspection and someone really makes a fuss about it, I'll fix it." I told him it would and it did. The buyer requested a new roof and the seller was forced to replace it or lose the deal.
What do all three of these stories have in common? Buyers are smart, they do their homework, they check, and triple check. You will not be able to fool anyone these days. It doesn't matter if you are selling a car, selling a room, or selling a home. Be honest, be up front, do what you need to do to make it right, and you'll not only have a smooth sale, but a good reputation as well.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
A friend was telling me a story about buying a used car from a dealer. The car had the Inspected and Certified Used Car sticker on it, and the dealership represented that the car was in good working order. Nonetheless, the buyers wanted to have it checked out by their mechanic before putting down the money and driving it off the lot. Upon inspection, the mechanic told these would-be buyers that the car needed a new fuel pump as well as a new timing belt.
The buyers went back to the dealership and told them what the mechanic found, but the dealership was not cooperative. They disagreed with the mechanic's assessment and they refused to replace the items before selling the car. Obviously, the buyers did not go through with the purchase.
Story #2
Some friends wanted to go on a vacation and they planned to book it online. The pictures and reviews of the hotel were fantastic, but since they had never been to this area before, they wanted to do a little extra checking. They decided to use Oyster.com which is like the "travel police." They check out all the claims that a resort may be making, they look at potentially fraudulent reviews, and they go to the resorts and take real pictures of the rooms. Then you can compare the real pictures from Oyster to the pictures that the resort is advertising on their website. Good thing that they did their homework because the real pictures did not look anything like the website's advertised photos.
Story #3
A friend was selling his home and did some fix up work. I asked him if he replaced the roof. He said, "No, if it comes up on inspection and someone really makes a fuss about it, I'll fix it." I told him it would and it did. The buyer requested a new roof and the seller was forced to replace it or lose the deal.
What do all three of these stories have in common? Buyers are smart, they do their homework, they check, and triple check. You will not be able to fool anyone these days. It doesn't matter if you are selling a car, selling a room, or selling a home. Be honest, be up front, do what you need to do to make it right, and you'll not only have a smooth sale, but a good reputation as well.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
You Cannot Fool Today's Buyers. By Dan Polimino. Your Voice Blogs Denver YourHub.com http://ping.fm/9VY6M
Thursday, April 7, 2011
Check out my latest blog entry titled...
Check out my latest blog entry titled "For Purchase or a Refi, VA IS THE WAY" at http://ow.ly/4vd6Q
Check out my latest blog entry titled...
Check out my latest blog entry titled "For Purchase or a Refi, VA IS THE WAY" at http://ow.ly/4vd6Q
Check out my latest blog entry titled...
Check out my latest blog entry titled "For Purchase or a Refi, VA IS THE WAY" at http://ow.ly/4vd6Q
For Purchase or a Refi, VA IS THE WAY
In addition to not requiring a down payment, VA mortgages are now a superior choice to FHA mortgages in most cases. The reason is simple. While the upfront costs are usually higher than a FHA loan, there is no monthly mortgage insurance on a VA loan.
Upfront costs, referred to as the mortgage insurance premium (MIP), for FHA mortgages are currently 1% of the loan amount. In addition, there is the annual mortgage insurance premium which is paid monthly. This will be increasing to 1.15% on April 18, 2011. On a FHA mortgage of $200,000, the upfront MIP would be $2,000, bringing the loan amount to $202,000, and the annual mortgage premium would be $191.67 per month.
Upfront costs on a VA mortgage are referred to as the Funding Fee. The funding fee for purchase mortgages are as follows:
* ZERO for a veteran with a service related disability
* 3.3% for a veteran who has used his eligibility before.
* 2.15% for first time buyers who are on Active duty or Veterans.
* 2.4% for reservists and National Guard.
For streamline VA refinances the funding fee ranges from zero to 0.5%. A first time buyer with a funding fee of 2.15% would have $4,300 added to a $200,000 mortgage for a total loan amount of $204,300. While this is $2,430 more than a FHA mortgage, the buyer is not paying the monthly mortgage insurance of $191.67. The buyer is money ahead after 13 months.
I recently did a purchase mortgage for a Vet who could have come up with the down payment for a FHA mortgage. After looking at his options, he wisely choose the VA mortgage. The $10,500 he would have used for his down payment was instead used for home improvements on his new home. His earnest money was $1,500, which he received back at closing. All in all, a win-win deal.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Colorado Mortgage Broker License # 100019831
NMLS # 378621
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
Upfront costs, referred to as the mortgage insurance premium (MIP), for FHA mortgages are currently 1% of the loan amount. In addition, there is the annual mortgage insurance premium which is paid monthly. This will be increasing to 1.15% on April 18, 2011. On a FHA mortgage of $200,000, the upfront MIP would be $2,000, bringing the loan amount to $202,000, and the annual mortgage premium would be $191.67 per month.
Upfront costs on a VA mortgage are referred to as the Funding Fee. The funding fee for purchase mortgages are as follows:
* ZERO for a veteran with a service related disability
* 3.3% for a veteran who has used his eligibility before.
* 2.15% for first time buyers who are on Active duty or Veterans.
* 2.4% for reservists and National Guard.
For streamline VA refinances the funding fee ranges from zero to 0.5%. A first time buyer with a funding fee of 2.15% would have $4,300 added to a $200,000 mortgage for a total loan amount of $204,300. While this is $2,430 more than a FHA mortgage, the buyer is not paying the monthly mortgage insurance of $191.67. The buyer is money ahead after 13 months.
I recently did a purchase mortgage for a Vet who could have come up with the down payment for a FHA mortgage. After looking at his options, he wisely choose the VA mortgage. The $10,500 he would have used for his down payment was instead used for home improvements on his new home. His earnest money was $1,500, which he received back at closing. All in all, a win-win deal.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Colorado Mortgage Broker License # 100019831
NMLS # 378621
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
Wednesday, April 6, 2011
Amazing Mountain Home in Lone Tree, Colorado Your Voice Blogs Lone Tree YourHub.com http://ping.fm/70ti6
Tuesday, April 5, 2011
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Inspections On New Construction" at http://ow.ly/4tzlP
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Inspections On New Construction" at http://ow.ly/4tzlP
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Inspections On New Construction" at http://ow.ly/4tzlP
Inspections On New Construction. By Dan Polimino.
It's one of those frequently asked questions: "Should I get an inspection on a newly constructed home?" Great question and I usually tell my buyers that the answer is yes/no and I'll explain why.
You see, most builders offer a one-year bumper to bumper warranty on the home that they just sold you. Moreover, during the due diligence process, buyers usually get a chance to do two walkthroughs with the warranty and service superintendent. The purpose of the first walkthrough is to point out any defects, problems, or items that you think need to be fixed in the house. The second walkthrough is to make sure that the items have been corrected and to take one more look to see if you missed anything in the first walkthrough. I know a lot of people that get worried if they still missed something after the two walkthrough inspections. I usually tell them not to worry because they have a full year to have the builder's service people come back and fix something that they may have missed.
Then the question comes up about hidden defects that the buyer can't see like structural problems, stucco or siding issues, electrical, plumbing, HVAC, and etc. Buyers say, "Shouldn't we check that the builder isn't hiding any problems by doing a full blown inspection?" Yes, you should, but I think that there is a better way to handle it. Since you have a full one-year warranty, why not wait until 10 months into the warranty and then spend a few hundred dollars for a full blown inspection? By doing so in month 10, you then can come up with a laundry list of items that need to be repaired or replaced, including hidden defects discovered by the inspector. Then, before your warranty is up, you can get a complete checkup and fix up of your home, courtesy of the builder. If you are concerned about closing and moving into a home that has structural problems, don't worry; most builders offer 10-year warranties on structural defects. Everything can be discovered and fixed in the first year.
In my opinion, this is the best of both worlds. You get all the things that need to be fixed, replaced or repaired before you close and move in. Then you "test drive" the home for 10 months and get another list of items fixed, replaced or repaired with no money out of your pocket except the fee for inspection.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
You see, most builders offer a one-year bumper to bumper warranty on the home that they just sold you. Moreover, during the due diligence process, buyers usually get a chance to do two walkthroughs with the warranty and service superintendent. The purpose of the first walkthrough is to point out any defects, problems, or items that you think need to be fixed in the house. The second walkthrough is to make sure that the items have been corrected and to take one more look to see if you missed anything in the first walkthrough. I know a lot of people that get worried if they still missed something after the two walkthrough inspections. I usually tell them not to worry because they have a full year to have the builder's service people come back and fix something that they may have missed.
Then the question comes up about hidden defects that the buyer can't see like structural problems, stucco or siding issues, electrical, plumbing, HVAC, and etc. Buyers say, "Shouldn't we check that the builder isn't hiding any problems by doing a full blown inspection?" Yes, you should, but I think that there is a better way to handle it. Since you have a full one-year warranty, why not wait until 10 months into the warranty and then spend a few hundred dollars for a full blown inspection? By doing so in month 10, you then can come up with a laundry list of items that need to be repaired or replaced, including hidden defects discovered by the inspector. Then, before your warranty is up, you can get a complete checkup and fix up of your home, courtesy of the builder. If you are concerned about closing and moving into a home that has structural problems, don't worry; most builders offer 10-year warranties on structural defects. Everything can be discovered and fixed in the first year.
In my opinion, this is the best of both worlds. You get all the things that need to be fixed, replaced or repaired before you close and move in. Then you "test drive" the home for 10 months and get another list of items fixed, replaced or repaired with no money out of your pocket except the fee for inspection.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
Inspections On New Construction. By Dan Polimino. Your Voice Blogs Denver YourHub.com http://ping.fm/vgx5K
Wednesday, March 30, 2011
Tuesday, March 29, 2011
Check out my new real estate blog ent...
Check out my new real estate blog entry titled "Are You In Cloud?" at http://ow.ly/4oGzM
Check out my new real estate blog ent...
Check out my new real estate blog entry titled "Are You In Cloud?" at http://ow.ly/4oGzM
Check out my new real estate blog ent...
Check out my new real estate blog entry titled "Are You In Cloud?" at http://ow.ly/4oGzM
Are You In Cloud? By Dan Polimino.
Cloud computing is really becoming popular and many people are using cloud computing and don't even know it. For example, if you have used Google's document service to store documents on your Google account, you are using cloud computing. If you have ever added content to a web portal and then retrieved that content from another computer, you are using cloud computing.
More and more applications are being developed so people can use them in the cloud instead of having to purchase and download software to one desktop. In real estate over the last two years, CTM contracts have developed a cloud computing platform where all of our real estate contracts are created and stored. I can write a contract for a client whether I am sitting at my desk or if I am at a Starbucks in San Francisco, California.
Cloud computing has been great for picture sites like Flickr. People can store their photos and other people like grandparents can login and access the latest shots of their grandkids. I use and love using Flickr for real estate because it's a great web sharing platform for my listings. Fixing and editing photos are now all done in the cloud. In real estate, if I have to edit some photos of a house on the fly, I just go to the website Kanubee. It's simple, easy, free, and it's cloud computing.
At first there was concern over the security of storing important files and documents in the cloud. Fear of them being hacked or fears of them being lost to equipment failure were all real concerns. Great strides have been made in the last few years for encryption and security of sensitive files and now the backup systems that store all this data have their own backup systems.
Our office has just implemented a cloud computing platform to better manage and communicate all the real estate transactions for the company. Now all the agents can sign into one web portal, communicate with each other, and schedule multiple processes with just a few clicks of the mouse. In the past, most of these actions took a few phone calls, some emails, and little back and forth. That is now eliminated as technology continues to drive a more efficient machine with one process that is now speaking to another in computer language.
You can even set up a cloud computing platform for yourself and or your small business. I set one up two years ago for me and my business partner Gary so we could better manage our listings and the marketing required by each. It's called Basecamp and they have really affordable plans for everyone.
If you haven't dipped into this new technology, give it try. I promise it won't hurt and might even help you.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
More and more applications are being developed so people can use them in the cloud instead of having to purchase and download software to one desktop. In real estate over the last two years, CTM contracts have developed a cloud computing platform where all of our real estate contracts are created and stored. I can write a contract for a client whether I am sitting at my desk or if I am at a Starbucks in San Francisco, California.
Cloud computing has been great for picture sites like Flickr. People can store their photos and other people like grandparents can login and access the latest shots of their grandkids. I use and love using Flickr for real estate because it's a great web sharing platform for my listings. Fixing and editing photos are now all done in the cloud. In real estate, if I have to edit some photos of a house on the fly, I just go to the website Kanubee. It's simple, easy, free, and it's cloud computing.
At first there was concern over the security of storing important files and documents in the cloud. Fear of them being hacked or fears of them being lost to equipment failure were all real concerns. Great strides have been made in the last few years for encryption and security of sensitive files and now the backup systems that store all this data have their own backup systems.
Our office has just implemented a cloud computing platform to better manage and communicate all the real estate transactions for the company. Now all the agents can sign into one web portal, communicate with each other, and schedule multiple processes with just a few clicks of the mouse. In the past, most of these actions took a few phone calls, some emails, and little back and forth. That is now eliminated as technology continues to drive a more efficient machine with one process that is now speaking to another in computer language.
You can even set up a cloud computing platform for yourself and or your small business. I set one up two years ago for me and my business partner Gary so we could better manage our listings and the marketing required by each. It's called Basecamp and they have really affordable plans for everyone.
If you haven't dipped into this new technology, give it try. I promise it won't hurt and might even help you.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
Thursday, March 24, 2011
Home Buyer Credit Still Available For Qualifying Vets! Your Voice Blogs Denver YourHub.com http://ping.fm/SJqj8
Wednesday, March 23, 2011
Check out Denver Real Estate Market U...
Check out Denver Real Estate Market Update titled "Yes I Can Help You" at http://ow.ly/4kP67
Check out Denver Real Estate Market U...
Check out Denver Real Estate Market Update titled "Yes I Can Help You" at http://ow.ly/4kP67
Tuesday, March 22, 2011
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Wise Counsel" at http://ow.ly/4jEba
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Wise Counsel" at http://ow.ly/4jEba
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Wise Counsel" at http://ow.ly/4jEba
Wise Counsel. By Dan Polimino.
I am sure that in one capacity or another, you have tried to impart wise counsel on someone in an attempt to help them from making a mistake, or just to make their life a little easier. Parents try to talk to teens all the time, giving them wise counsel that usually has been rooted from their own mistakes or failures. Sometimes, those teens listen, but as many of us have found out, many times, they don't. There is just something about having to learn those lessons yourself the hard way.
The same story can be told, believe it or not, in real estate. I see really smart Realtors giving wise counsel to their clients, and more often than not, I see it fall on deaf ears. It's almost as if the client is saying, "Thank you so much for your experience and sound advice, but I really need to take my lumps and learn this the hard way." Of course, I have never heard a consumer say that, but you get that feeling after a lot of your wise counsel has been ignored. I do want to be clear that I am not making a generalization here, and this does not apply to everyone buying or selling a home. The reason why I bring this topic to light is because I am noticing an increase in the amount of people who are ignoring wise counsel from their real estate agents. Why would this be?
I think the answer is broad and I'll attempt to offer a few theories here. 1) Information is more prevalent than ever before with instant access. Sellers and buyers are doing much more homework, reading and watching more information everyday about buying and selling a home. While educating yourself is great and I am all for it, some people have taken it to an extreme and have become a real estate professional overnight. 2) The economy has put everyone on the edge. Every dollar counts in every price point and as such, we are seeing a level of inflexibility that we have never seen before. This inevitability leads to many more mistakes that could have been easily avoided. 3) The gap between buyer and seller is still great. The advantage is still too heavily weighted in favor of the buyer. As long as the equation is so lopsided, buyers and sellers will continue to ignore wise counsel.
Believe it or not, I do not know a Realtor that really doesn't genuinely care about the best interest of his or her clients. Maybe I am just blessed to be working with a great group of professionals. Consumers need to realize that Realtors REALLY are trying to help them, and 9 times out of 10 don't have ulterior motives. Any wise counsel a Realtor imparts to you, "the client," they are doing so from experience and a REAL desire to see you succeed in this transaction. There is really no need for you to "learn it the hard way." Realtors really can help you navigate a successful transaction without trial and error.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
The same story can be told, believe it or not, in real estate. I see really smart Realtors giving wise counsel to their clients, and more often than not, I see it fall on deaf ears. It's almost as if the client is saying, "Thank you so much for your experience and sound advice, but I really need to take my lumps and learn this the hard way." Of course, I have never heard a consumer say that, but you get that feeling after a lot of your wise counsel has been ignored. I do want to be clear that I am not making a generalization here, and this does not apply to everyone buying or selling a home. The reason why I bring this topic to light is because I am noticing an increase in the amount of people who are ignoring wise counsel from their real estate agents. Why would this be?
I think the answer is broad and I'll attempt to offer a few theories here. 1) Information is more prevalent than ever before with instant access. Sellers and buyers are doing much more homework, reading and watching more information everyday about buying and selling a home. While educating yourself is great and I am all for it, some people have taken it to an extreme and have become a real estate professional overnight. 2) The economy has put everyone on the edge. Every dollar counts in every price point and as such, we are seeing a level of inflexibility that we have never seen before. This inevitability leads to many more mistakes that could have been easily avoided. 3) The gap between buyer and seller is still great. The advantage is still too heavily weighted in favor of the buyer. As long as the equation is so lopsided, buyers and sellers will continue to ignore wise counsel.
Believe it or not, I do not know a Realtor that really doesn't genuinely care about the best interest of his or her clients. Maybe I am just blessed to be working with a great group of professionals. Consumers need to realize that Realtors REALLY are trying to help them, and 9 times out of 10 don't have ulterior motives. Any wise counsel a Realtor imparts to you, "the client," they are doing so from experience and a REAL desire to see you succeed in this transaction. There is really no need for you to "learn it the hard way." Realtors really can help you navigate a successful transaction without trial and error.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
Thursday, March 17, 2011
Check out my latest blog entry titled...
Check out my latest blog entry titled "FHA Down Payment to increase by 286 percent?" at http://ow.ly/4gBDD
Check out my latest blog entry titled...
Check out my latest blog entry titled "FHA Down Payment to increase by 286 percent?" at http://ow.ly/4gBDD
FHA Down Payment to increase by 286 percent? Your Voice Blogs Denver YourHub.com http://ping.fm/ulX8S
Wednesday, March 16, 2011
Check out my latest Real Estate Marke...
Check out my latest Real Estate Market Update titled "You Can't Buy A Home That Meets 100% of Your Needs!" at http://ow.ly/4fJ2J
Check out my latest Real Estate Marke...
Check out my latest Real Estate Market Update titled "You Can't Buy A Home That Meets 100% of Your Needs!" at http://ow.ly/4fJ2J
Check out my latest Real Estate Marke...
Check out my latest Real Estate Market Update titled "You Can't Buy A Home That Meets 100% of Your Needs!" at http://ow.ly/4fJ2J
You Can't Buy A Home That Meets 100% of Your Needs! Your Voice Blogs Denver YourHub.com http://denver.yourhub.com/Denver/Blogs/Your-Voice/Blog~956095.aspx
You Can't Buy A Home That Meets 100% of Your Needs! http://www.trulia.com/blog/dan_polimino/2011/03/you_can_t_buy_a_home_that_meets_100_of_your_needs
Wednesday, March 9, 2011
Full Mountain Views in Lone Tree, Colorado Your Voice Blogs Lone Tree YourHub.com http://ping.fm/VcszW
Tuesday, March 8, 2011
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Your Personality, Your Lifestyle, Your Home" at http://ow.ly/4aaZU
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Your Personality, Your Lifestyle, Your Home" at http://ow.ly/4aaZU
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "Your Personality, Your Lifestyle, Your Home" at http://ow.ly/4aaZU
Your Personality, Your Lifestyle, Your Home. By Dan Polimino.
For many years, the Sotheby's Realty website has had "lifestyle" as one of its main search options to find a home. People could simply click on the lifestyle that they wanted to live and the site would return results with homes that fit that lifestyle choice. Mountain, Beach, Golf, Metropolitan, Cape Cod, Lake Front, and Country Estates are just a few of the lifestyle choices that someone can make. A month ago, Wendy Purvey, Director of Marketing for Sotheby's International Realty, was presenting new information to us for 2011 and she mentioned, believe it or not, that "Mountain" was the most searched-on lifestyle choice. I was stunned! I would have bet my last penny that it would have been "Beach." After all, who doesn't like to be warm with sand in their toes and a cool ocean breeze in their face? I guess more people don't mind the cold after all.
Picking a home really says a lot about the type of lifestyle that you want to lead, and I think that lifestyle is really a reflection of one's personality. Let's take me for example. I love Colorado, I live in Colorado and work here, but truth be told, I am a beach guy through and through. I grew up in Ft. Lauderdale, Florida, and I haven't ever been able to get the sun and sand out of my system. I married a girl from Kona, Hawaii, and since both of us have tropical weather in our blood, we were meant to be together. My personality and DNA tells me every day that I should report to work in nothing more than a T-shirt and shorts. Ok, maybe a Tommy Bahama shirt and shorts just to dress it up a little bit, which means that I probably should take a real estate job in Hawaii. That's just my personality and how I am built. Everyone has a different DNA, a different personality, and that may have a huge impact on lifestyle choice. I know people who feel that they were born to golf, and a home on a course in Hilton Head, South Carolina, would be their "be all end all." If it were me, my "be all end all" would be a 4000-5000 sq. ft., open-air beach house in Waikoloa, Hawaii, right on the Ocean. I would want to walk off my huge lanai into the sand to surf, snorkel, kayak, and play with the kids under the palm trees.
I would like to end this week's column and ask you, the reader, what your personality says about your lifestyle and what does your lifestyle say about your choice of home. What and where is your dream home? Assuming that any and all obstacles were taken away, where do you see yourself living the good life? Be as descriptive as possible and let yourself dream.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
Picking a home really says a lot about the type of lifestyle that you want to lead, and I think that lifestyle is really a reflection of one's personality. Let's take me for example. I love Colorado, I live in Colorado and work here, but truth be told, I am a beach guy through and through. I grew up in Ft. Lauderdale, Florida, and I haven't ever been able to get the sun and sand out of my system. I married a girl from Kona, Hawaii, and since both of us have tropical weather in our blood, we were meant to be together. My personality and DNA tells me every day that I should report to work in nothing more than a T-shirt and shorts. Ok, maybe a Tommy Bahama shirt and shorts just to dress it up a little bit, which means that I probably should take a real estate job in Hawaii. That's just my personality and how I am built. Everyone has a different DNA, a different personality, and that may have a huge impact on lifestyle choice. I know people who feel that they were born to golf, and a home on a course in Hilton Head, South Carolina, would be their "be all end all." If it were me, my "be all end all" would be a 4000-5000 sq. ft., open-air beach house in Waikoloa, Hawaii, right on the Ocean. I would want to walk off my huge lanai into the sand to surf, snorkel, kayak, and play with the kids under the palm trees.
I would like to end this week's column and ask you, the reader, what your personality says about your lifestyle and what does your lifestyle say about your choice of home. What and where is your dream home? Assuming that any and all obstacles were taken away, where do you see yourself living the good life? Be as descriptive as possible and let yourself dream.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
Your Personality, Your Lifestyle, Your Home. By Dan Polimino. Your Voice Blogs Denver YourHub.com http://ping.fm/Y0tGq
Wednesday, March 2, 2011
Check out Denver Real Estate Weekly M...
Check out Denver Real Estate Weekly Market Update titled "A Shock Real Estate Statistic" at http://ow.ly/46o1d
Check out Denver Real Estate Weekly M...
Check out Denver Real Estate Weekly Market Update titled "A Shock Real Estate Statistic" at http://ow.ly/46o1d
Check out Denver Real Estate Weekly M...
Check out Denver Real Estate Weekly Market Update titled "A Shock Real Estate Statistic" at http://ow.ly/46o1d
Tuesday, March 1, 2011
Check out my latest real estate blog ...
Check out my latest real estate blog titled "Hidden Gem" at http://ow.ly/45Ftd
Check out my latest real estate blog ...
Check out my latest real estate blog titled "Hidden Gem" at http://ow.ly/45Ftd
Check out my latest real estate blog ...
Check out my latest real estate blog titled "Hidden Gem" at http://ow.ly/45Ftd
Wednesday, February 23, 2011
Tuesday, February 22, 2011
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "The Train Is Leaving the Station" at http://ow.ly/4132G
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "The Train Is Leaving the Station" at http://ow.ly/4132G
Check out my latest real estate blog ...
Check out my latest real estate blog entry titled "The Train Is Leaving the Station" at http://ow.ly/4132G
The Train Is Leaving the Station. By Dan Polimino.
I want to dispel one myth right away, and that is, Realtors do not utter the sentence "It's a great time to buy" 365 days a year. At least I don't, and the reason why, is simply because I do not want to be the boy that is constantly crying wolf. When I think that there is a real opportunity to buy and my clients should take advantage of it, I want them to REALLY listen to me. If I am always trotting out the old "you really should buy now" mantra, then pretty soon, it will fall on deaf ears. This is one of those times when I am telling my clients and consumers that they should buy now and here's why!
There are too many signs right now that buyers are ready to jump into the market and start buying now.
1. Cash buyers are coming into the market quickly and buying big junks of properties. According to the National Association of Realtors, 28% of all transactions last year were cash and that's double from 14% in 2008. According to Metrolist here in Colorado, 22% of all residential transactions in 2010 were cash compared to just 12% in 2008.
2. Yield on the 10-Year TreasuryNotes has increased substantially in the last several weeks, indicating an increase in mortgage rates. Mortgage Back Securities are telling a similar story. Rates are creeping up and staying under the radar while most people don't even recognize that they are rising. We were hovering around the high 4's to 5% interest rates just back in December. Now, we are at 5.25% to 5.5%. I think it's very conceivable that we could be at 6% by the end of summer. If the interest rates get to 6% by the end of summer, they will NEGATE ANY BIG DISCOUNT YOU GOT ON THE PRICE OF THE HOME. I know we all want to wait for prices to drop further, but you need to weigh that against the interest rates if you are getting a loan.
3. Inventory is at a high but likely to decrease. APRIL 1 STARTS THE BUYING SEASON.
4. Congress is substantially limiting Fannie and Freddie, which will likely decrease mortgage funds and increase rates.
In summary, MOST people miss the train and buy too late. I would say that 95% of people don't get this equation correct. A great example is: "How many of you invested in the stock market at the all-time low of March 2009? Were you able to time the market?" If the answer is: "No, I did not," don't worry. Most people (95%) didn't invest then, either. You need to hit it at just the right time of low price and low interest. By the time you realize that interest rates are rising and not coming down, you are too late. Like Warren Buffet and other great investors do, "buy when there is chaos." Don't buy when things settle down or it will be too late. "Unpredictability" in this case is a good thing, so use it to your advantage.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
There are too many signs right now that buyers are ready to jump into the market and start buying now.
1. Cash buyers are coming into the market quickly and buying big junks of properties. According to the National Association of Realtors, 28% of all transactions last year were cash and that's double from 14% in 2008. According to Metrolist here in Colorado, 22% of all residential transactions in 2010 were cash compared to just 12% in 2008.
2. Yield on the 10-Year TreasuryNotes has increased substantially in the last several weeks, indicating an increase in mortgage rates. Mortgage Back Securities are telling a similar story. Rates are creeping up and staying under the radar while most people don't even recognize that they are rising. We were hovering around the high 4's to 5% interest rates just back in December. Now, we are at 5.25% to 5.5%. I think it's very conceivable that we could be at 6% by the end of summer. If the interest rates get to 6% by the end of summer, they will NEGATE ANY BIG DISCOUNT YOU GOT ON THE PRICE OF THE HOME. I know we all want to wait for prices to drop further, but you need to weigh that against the interest rates if you are getting a loan.
3. Inventory is at a high but likely to decrease. APRIL 1 STARTS THE BUYING SEASON.
4. Congress is substantially limiting Fannie and Freddie, which will likely decrease mortgage funds and increase rates.
In summary, MOST people miss the train and buy too late. I would say that 95% of people don't get this equation correct. A great example is: "How many of you invested in the stock market at the all-time low of March 2009? Were you able to time the market?" If the answer is: "No, I did not," don't worry. Most people (95%) didn't invest then, either. You need to hit it at just the right time of low price and low interest. By the time you realize that interest rates are rising and not coming down, you are too late. Like Warren Buffet and other great investors do, "buy when there is chaos." Don't buy when things settle down or it will be too late. "Unpredictability" in this case is a good thing, so use it to your advantage.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
The Train Is Leaving the Station. By Dan Polimino. Your Voice Blogs Denver YourHub.com http://ping.fm/QqN0E
Friday, February 18, 2011
Check out my latest blog entry titled...
Check out my latest blog entry titled "Not a Vet and want a 100% loan?" at http://ow.ly/3Z08G
Check out my latest blog entry titled...
Check out my latest blog entry titled "Not a Vet and want a 100% loan?" at http://ow.ly/3Z08G
Check out my latest blog entry titled...
Check out my latest blog entry titled "Not a Vet and want a 100% loan?" at http://ow.ly/3Z08G
Not a Vet and want a 100% loan?
The United States Department of Agriculture (USDA) has a wonderful program to help purchase homes, in rural areas that are not farms, with no money down. In fact, program guidelines include purchase of less than 5 acres and no growing crops. Many of the eligible areas are within a reasonable commute to the Denver Metro area. It should be mentioned that 100% loans are not inherently dangerous to either the borrower or taxpayer. Currently VA loans, which have no required down payment, have the lowest default rate of all mortgage products.
The good news about this program is that in addition to stick built homes, modular and manufactured homes may qualify. The program is not limited to first time buyers, however, borrowers may not own any other real estate. Mortgage insurance is NOT required with this program. This program is for owner occupants to purchase a home, and is not available to investors or existing homeowners for a refinance. Buyers are subject to income limitations. This means that a buyer could make too much money to be eligible. While it seems insane that a borrower could make to much money when applying for a loan, the logic is that this program is supposed to help people who do not have other options.
The USDA's website at www.rurdev.usa.gov contains a wealth of information about income limits and property eligibility. Just enter the property address and it will tell you if the property is acceptable. As always, I appreciate your comments and questions.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Colorado Mortgage Broker License # 100019831
NMLS # 378621
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
The good news about this program is that in addition to stick built homes, modular and manufactured homes may qualify. The program is not limited to first time buyers, however, borrowers may not own any other real estate. Mortgage insurance is NOT required with this program. This program is for owner occupants to purchase a home, and is not available to investors or existing homeowners for a refinance. Buyers are subject to income limitations. This means that a buyer could make too much money to be eligible. While it seems insane that a borrower could make to much money when applying for a loan, the logic is that this program is supposed to help people who do not have other options.
The USDA's website at www.rurdev.usa.gov contains a wealth of information about income limits and property eligibility. Just enter the property address and it will tell you if the property is acceptable. As always, I appreciate your comments and questions.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Colorado Mortgage Broker License # 100019831
NMLS # 378621
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
Not a Vet and want a 100% loan? Your Voice Blogs Denver YourHub.com http://denver.yourhub.com/Denver/Blogs/Your-Voice/Blog~940869.aspx
Not a Vet and want a 100% loan? http://www.trulia.com/blog/dan_polimino/2011/02/not_a_vet_and_want_a_100_loan
Not a Vet and want a 100% loan? http://activerain.com/blogsview/2144042/not-a-vet-and-want-a-100-loan-
Thursday, February 17, 2011
Read "Lender Failed! FDIC to sell ass...
Read "Lender Failed! FDIC to sell assets. Call ASAP for details." at http://ow.ly/3YgId
Read "Lender Failed! FDIC to sell ass...
Read "Lender Failed! FDIC to sell assets. Call ASAP for details." at http://ow.ly/3YgId
Read "Lender Failed! FDIC to sell ass...
Read "Lender Failed! FDIC to sell assets. Call ASAP for details." at http://ow.ly/3YgId
LENDER FAILED! FDIC TO SELL ASSETS. CALL ASAP FOR DETAILS.
Hey everyone the bank holding the note on these two amazing custom homes is in bankruptcy. The FDIC is running the bank temporarily and is selling the assets. This is the time for an amazing deal. Have all your potential buyers look at these and get an offer into the FDIC right away. They want them sold ASAP and will look at any and all reasonable offers. Here are the links: http://ow.ly/3XSGL also http://ow.ly/3XSIO. Call Fuller Sotheby's agent Dan Polimino for the details at 303-522-1161.
LENDER FAILED! FDIC TO SELL ASSETS. CALL ASAP FOR DETAILS. Your Voice Blogs Parker YourHub.com http://ping.fm/pDtKM
Wednesday, February 16, 2011
Lender Failed! FDIC To Sell The Assets! Call Me ASAP For Details. Your Voice Blogs Parker YourHub.com http://ping.fm/OHnLv
Tuesday, February 15, 2011
Check out my latest blog entry titled...
Check out my latest blog entry titled "Are We Better Off Than We Were Three Years Ago?" at http://ow.ly/3WOeh
Check out my latest blog entry titled...
Check out my latest blog entry titled "Are We Better Off Than We Were Three Years Ago?" at http://ow.ly/3WOeh
Check out my latest blog entry titled...
Check out my latest blog entry titled "Are We Better Off Than We Were Three Years Ago?" at http://ow.ly/3WOeh
Are We Better Off Than We Were Three Years Ago? By Dan Polimino.
"Are we better off than we were __________?" You hear politicians use this phrase all the time on the campaign trail. I remember when Ronald Reagan used it for the first time so successfully in his bid to be President. We are always asking the question if we are better than __________. Better off than last year, two years ago, before the recession. Are we better off with more money in our pocket, do we have better jobs, more safety and security, and even just more hope? There are a lot of offshoots in which you can discuss the "are we better off question." So I applied this to real estate and in conclusion, I came to the realization that in many ways, we are better off than where we were three years ago.
* The truth is, many of our homes were overpriced and over speculated. It was not realistic to think that we would forever be able to sustain that type of growth and appreciation. Today, I think that we have a much greater handle on the value of homes and whether or not they'll appreciate or depreciate.
* We got rid of a lot of bad eggs. No question that the real estate industry including the lending business had their fair share of unscrupulous people. I am sure that there are still a few around looking to take advantage of people, but by and large, a lot of the bad apples are out of the business.
* The real professionals are still here. There were a lot of people that jumped into real estate at the peak, hoping to make quick cash and capitalize on the market. Those people are working elsewhere now and the (real) real estate professionals are still selling homes. In fact, I think that the tougher times have made these agents and brokers better yielding a higher level of service than ever achieved before.
* People are smarter with their money. Less and less consumers go off half-cocked and make foolish purchases. They are smart about how they use their money, buy smaller homes, reduce debt, and find values.
* Some but not all regulations have been good. People will argue that stricter guidelines in appraisals have helped overall while others will say it hurt the industry. I think that making mortgage lenders get licensed in Colorado has been a good thing because it helps eliminate the fly-by-night operations.
Finally, don't misinterpret this column; there are plenty of ways in which we are not better off than three years ago and many of them have been documented in this column. It is extremely sad how many people have lost their homes and how the economy has torn families apart. I am reminded of another phrase that my mother used to tell me which was, "from pain comes growth." I hope she's right and the politicians can honestly say that "we are better off than we were three years ago" sometime soon.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
* The truth is, many of our homes were overpriced and over speculated. It was not realistic to think that we would forever be able to sustain that type of growth and appreciation. Today, I think that we have a much greater handle on the value of homes and whether or not they'll appreciate or depreciate.
* We got rid of a lot of bad eggs. No question that the real estate industry including the lending business had their fair share of unscrupulous people. I am sure that there are still a few around looking to take advantage of people, but by and large, a lot of the bad apples are out of the business.
* The real professionals are still here. There were a lot of people that jumped into real estate at the peak, hoping to make quick cash and capitalize on the market. Those people are working elsewhere now and the (real) real estate professionals are still selling homes. In fact, I think that the tougher times have made these agents and brokers better yielding a higher level of service than ever achieved before.
* People are smarter with their money. Less and less consumers go off half-cocked and make foolish purchases. They are smart about how they use their money, buy smaller homes, reduce debt, and find values.
* Some but not all regulations have been good. People will argue that stricter guidelines in appraisals have helped overall while others will say it hurt the industry. I think that making mortgage lenders get licensed in Colorado has been a good thing because it helps eliminate the fly-by-night operations.
Finally, don't misinterpret this column; there are plenty of ways in which we are not better off than three years ago and many of them have been documented in this column. It is extremely sad how many people have lost their homes and how the economy has torn families apart. I am reminded of another phrase that my mother used to tell me which was, "from pain comes growth." I hope she's right and the politicians can honestly say that "we are better off than we were three years ago" sometime soon.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
Are We Better Off Than We Were Three Years Ago? By Dan Polimino. Your Voice Blogs Denver YourHub.com http://ping.fm/cxoqG
Friday, February 11, 2011
Read "Critical Information to my Home...
Read "Critical Information to my Home Buyers" at http://ow.ly/3UNzN. Call me with questions.
Read "Critical Information to my Home...
Read "Critical Information to my Home Buyers" at http://ow.ly/3UNzN. Call me with questions.
Read "Critical Information to my Home...
Read "Critical Information to my Home Buyers" at http://ow.ly/3UNzN. Call me with questions.
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