Breaking it up in Layman's terms

Rates, Mortgage Backed Securities.... what to do? Are you in the process of buying a house. If so, then I am sure you have heard these terms. The government is finally pulling out of mortgage backed securities at the end of the first quarter. The first quarter ends tomorrow, March 31st. The government bought mortgage backed securities in January 2009. This was something that had not been done in the past. They were due to pull out in May 2009 and then December 2009 so I believe the end is in sight. I don't believe that they are going to extend it again. In fact I heard that they might be selling them instead of being an investor. I don't see another large investor signing up anytime soon to keep our rates down.
If you do speak with your lender in the morning then you might want to weigh out the extended locks option if you are building a house or need a lock for 90-180 days. You have to ask your lender how long it would take to break even. Extended locks usually cost extra money depending on the lock terms. I don't believe that rates would climb higher than 5.5% but I do think they will start climbing up quickly.  I don't see the rates climbing even close to as high as they were in the 80's. Today is your day to take advantage.

Breaking it up in Layman's terms

Want a new appliance?

Calling all NC residents… Have you heard what is happening April 22nd –April 25th? It is the Cash for Clunkers

The NC Energy Star Appliance Replacement and Rebate Program has put millions of dollars to help stimulate the economy, cut energy and reduce greenhouse gas emissions. You will get a 15 percent rebate on top of the manufacturers offer on energy star rated appliances. You will be able to purchase different appliances but just not multiple appliances. The article states that a new Energy Star rated refrigerator uses half the electricity that the same refrigerator built before 1995 uses. That is a lot of money in your pocket too!

Check out the website http://www.energystar.gov/index.cfm?fuseaction=rebate.appliance_rebate&state=NC

Want a new appliance?

Swiss Cheese is the only item you buy holey

I want to start by saying that Swiss Cheese is the only item that is acceptable holey. Nobody wants holes in the ground, new house, shoes, groceries, tires or the home buying process. I have talked about the initial interview process for you and the lender but never about a complete application. As a lender it is important to roll up the sleeves and get all the personal information. The lender has one of the most important roles because if there is a hole in your application/ story then underwriting could decline it. It is sometimes all about the proposal. Everyday buyers get frustrated for us digging into their personal life but if we don't upfront then the file might not succeed. You have to remember that all information will have to be documented even if you have told your lender. There are a wide range of people that will pick up your file especially if your loan is sold. If the whole company missed a detail then it might not be able to be sold. Keep this in mind when you get that initial interview because ALL the details are very important.

A good example of the above situation would be if you have a house to sell, living at a temporary residence or aren't moving down at the same time as your spouse and are the main source of income. These details really do matter.

Swiss Cheese is the only item you buy holey

What does Value mean to you?

What does value mean to you? Have you ever thought about how value is communicated to you as a buyer? customer? friend? I read an article the other day that spoke about consumers being resource rich and time poor. I cannot think of a more true statement. If you watched the super bowl then you saw the Google commercial. I mean you can search anything. It is the first place to turn. In fact with an iphone you can now turn the lights off or turn it into a universal remote. Both of these examples are how companies are portraying resource rich and time poor. There are thousands of companies that are beginning to really catch on to this philosophy. If you have decided to buy a house or even thought about financing then I am sure you have already used your resources. It doesn’t mean that you have more time on your hands even if it is the biggest financial investment. I believe that a buyer should look at the value that a lender or agent can offer you. Value can mean different things to people but a company can truly give you value by offering choices and convenience.

If you didn't see the Google Ad then check it out http://bit.ly/b5RXZL

What does Value mean to you?

Listening to the professionals

Have you ever been told that everything is negotiable? I want you to think about this the next time you are in a real estate transaction. When we negotiate it is usually because we think it costs too much or need to save a penny. In real estate there are a lot of people with services that require payment. This list could include the seller, listing agent, buyer's agent, broker in charge fee, buyers, mortgage lenders, appraisers, attorney, all type of inspection consultants, and banks. All of these people have one thing in common with you and that is to support their family and pay their bills. All of these industries also have more involvement than any one buyer or even another part of the transaction can understand. We have to trust in this transaction that we are getting the best deal and you have hired the hardest workers to support you. In negotiated with people you don't always get their best work. You might get some money shaved off the top but you might also go to the bottom of their list. This in turn could cost you more money in the long run because it takes extra days to sell. If you are in a contingency offer and are locked in with your mortgage lender then it might cost extra money to extend your lock. Realtors and mortgage professionals devote hours of time to you. In today's market that takes some really awesome people that are worth every penny. I advise that you ask for clear communication and listen to what professionals can do for you rather than trying to get the best deal.

Listening to the professionals