Protecting Your Identity

We take all the necessary steps to guard your personal information... and so should you. If your holiday plans include purchasing a new home, be sure to include protecting your identity as an item on your "making a list and checking it twice" agenda. The effects of identity theft can damage your credit rating and impair your ability to obtain financing.


While you're trekking through the malls or cruising websites looking for great holiday bargains, it may be difficult to remember that not everyone around you is as caught up in the holiday spirit as you are. Some of your fellow shoppers may actually be identity thieves looking to parlay the season's hustle and bustle into an opportunity to steal your personal information and, ultimately, your money.

According to the FTC.gov website, it is estimated that as many as 9 million Americans have their identities stolen each year. On average, it takes a victim an estimated $500 and 30 hours to resolve each incidence of identity theft. No one wants to lose that kind of money at any time of year, but those time and monetary costs can be even more stressful during the holidays.

"The holidays present a wealth of opportunity for identity thieves," says Heather Battison, TransUnion's senior director responsible for consumer education. "The hectic holiday season can potentially expose our personal information to theft in both high-tech ways like phishing scams, and in traditional ones, such as a stolen wallet or mail theft."

Proactive steps from TransUnion that may help minimize your exposure to identity theft during the holidays:

'Tis the Season...to Protect Your Identity

*Only carry essential documents with you; take your driver's license and the credit card or cards you intend to use that day. Do not carry your Social Security card, birth certificate or passport.

*Keep a close eye on your credit card bills. This is especially important during the holidays, when close attention can help you catch any charges you don't recognize on your statement.

*The holidays mean plenty of extra trash. Shred everything that contains personal, identifying information before throwing it out.

*When shopping online, look for businesses with websites that have some level of security measures in place to protect you. For example: before you provide any personal or payment information, look for a URL that begins with https (not http) and a lock emblem on the page, typically next to the address bar.

*Before you surf the net, consider changing your account passwords and keep a list of them in a secure place. Passwords and PIN numbers should be a random mix of letters, numbers and special characters, which makes it harder for identity thieves to guess.

Preventing identity theft is important year round and especially during the holidays. By taking steps to protect yourself, you can help ensure your holidays remain bright - and secure.

~From Foundation Title

Remember you can always reach me via email at george.margrave@migonline.com or on the phone at 615-777-4663.  Happy New Year!

Give the Gift of Charity this Holiday Season!

It's a Snap with THE GOOD CARD® - a Gift Card for Charity

Network for Good has a fresh angle on gifting this holiday season: The Good Card® - a gift card for charity - is perfect for everyone on your list. Good Cards have a stored value that can be redeemed as a donation to any of more than 1.2 million charities based in the US. Good Cards can be distributed via email or physical mail, or can be private labeled to meet your brand needs. Learn more at Network for Good.

A gift card for charity is an ideal reward for employees or thank you gift for customers and vendors that links their passion for a cause to your company's brand. A new study by researchers from Harvard Business School, the University of British Columbia and the University of Liege that was recently highlighted in the Washington Post confirms that a bonus employees get to spend on others is more motivating than a bonus they get to spend on themselves. A Good Card recipient can redeem their gift card as a donation to any of more than a million nonprofits, an easy way for employees to share their personal rewards with others.

Good Card purchases, including fees, are tax-deductible to your company and are a creative way to spend funds earmarked for philanthropy. In addition, because Good Card purchases are charitable donations, they do not fall under the IRS gift limit or policies around corporate gifts with cash value. Network for Good's charity gift card program is turn-key, customizable and easy to implement - even at the last minute. The program is recommended for any company looking to put a special spin on their gift-giving this year. What's more, the person GIVING the gift (i.e., the card purchaser) gets the benefit of a tax advantage for charitable donations as well.

The Good Card is a creative and constructive way to honor partners and prospects, friends and neighbors during the holiday season and throughout the year. Visit Network for Good for more details.

Remember you can always reach me at 615-777-4663 or via email at george.margrave@migonline.com
 
Thanks for reading and Happy Holidays!

HUD $100 Down Homes

HUD is offering their foreclosed homes for $100 down until October 2012:

 

• Here is the deal
• It is only for HUD foreclosed properties
• You must use a HUD registered real estate broker or agent (If you need a referral we can help)
• You must qualify for and use FHA financing 
• You must be an “owner occupant”
• The $100 down payment program must be on the executed contract (specifically requested)
• HUD will pay up to 3% for closing costs
• 203K loans are eligible
• The homes are sold in “as is” condition

Please contact us if you have more questions George or Stephanie at 777-4663 (HOME) or email at George.Margrave@migonline.com or Stephanie.Holland@migonline.com .

 

New THDA Aquisition Limits

Last week we were notified by THDA (Tennessee Housing Development Agency ) that the acquisition limit for Davidson County MSA has been raised to $275,000. That means the first time buyers (defined as borrowers who have not had a marital interest in a home in three years) can buy a home up to $275,000. With our help the transaction can be structured with little to no cash needed by the borrower. That particular program has rates so low that the mortgage payment will very likely be less than rent. Also, do you know how nice the home that you get for $275,000 might be? Why would you be paying rent?


Just saying. That’s all.

Should you have any qeustions or need help with any of this, please feel free to contact me at my office, 615-777-4663 (HOME), my cell 615-481-4656 (LOAN) or via email at George.Margrave@migonline.com
  

TIPS FOR WORKING FROM HOME

Over 25 million people in the United States work from home and that number is increasing daily as companies and employers strive to decrease costs and increase productivity during these challenging economic times. While working at home is not feasible for every job or personality type, if your company allows it, it can be the perfect fit for some.

Here are five tips to make the most out of working from home:



1. Define your home office space

Make sure it is free from distractions and has a door you can close for privacy. This will also help differentiate between work and home life. Organize your home office as you would in your company's office space and spend a few minutes at the end of each day tidying up in preparation for the next business day.



2. Follow a dress code

Even if you are working from home, you should follow some sort of dress code. You don't have to don your best suit or anything that requires dry cleaning, but neither should you simply roll out of bed, and into your home office, still clad in pajamas or lounging clothes. Studies show that the way you dress affects your attitude and productivity.



3. Don't allow yourself to become "out of sight, out of mind"

Stay in contact with your boss and colleagues via email and phone. Remain accessible, communicate the successes and challenges associated with your projects to your boss, and collaborate with others as needed. Make certain that you stay on the radar and are always an essential contributor to the team.



4. Set regular office hours

Having regular office hours that include breaks and time for lunch will help you stay fresh, focused and allow you to accomplish your daily objectives. Try to resist the urge to go back into your office after your day has ended.



5. Get out and about

It is important to maintain ties with the outside world, so schedule a little time daily for outside activities. To avoid feeling isolated, take a brisk walk around the neighborhood during your break or schedule lunch with a client. This will help boost your energy level and maintain your positive outlook.


There are no hard and fast rules for working at home, as each individual and their situation will vary. Using these simple tips may help your home office become more efficient, effective and enjoyable, providing a win/win situation for both employer and employee!

~~From Foundation Title

PLEASE DON'T KEEP US A SECRET!

Thank you for confidence in our team

The George Margrave Team

Your Personal Mortgage Consultants

1-615-777-HOME (4663)

Fax Number 615-777-FAXX (3299)

www.mignashville.com

The Truth About Closing Credit Cards

If you have read anything about how to get and keep a high credit score, you have probably seen this advice: never close your credit cards. This advice is true and good. Sort of.


The 2 parts of valid reasoning behind the idea of not closing any credit cards are:

1. Closing a credit card will decrease your debt utilization ratio. A whopping 30% of your credit score is calculated from your Amounts Owed. Your debt utilization ratio (your total revolving debt divided by your total credit limit) needs to be as low as possible in order to reap the maximum credit score. Closing a credit card takes away some of your total credit limit, which can raise this ratio, and lower your credit score.

2. Closing a credit card will impact your length of credit history. It's a fact that the credit scoring model looks at how long a person has had credit established; the longer, the better. Closing a credit card you have had for many years may cause your length of credit history to decrease, which can result in a lower score.

So, there are valid reasons to not close your credit cards.


ADVICE: Never close a card that has a balance, your only credit card, or your oldest credit card!


But what if you have a ton of cards, are aiming to streamline your finances, and want to close some of them? Which ones can you close that will have minimal impact to your credit score?


If you have made the decision to close some of your credit cards, choose these (in this order):


Your newest card. The last credit card opened needs to be the first one to go. This card is not helping you very much with your length of credit history, so closing it should not have much impact on your credit score.

Your card with a zero balance. If you never use a particular piece of plastic, it is probably not figured into your credit score (credit lines must be used at least every 6 months in order to be factored into your credit score). Closing a card you never, ever use should have no impact on your credit score.

Your card with the worst terms. Big annual fees, high interest rates, and no perks give you no incentive to keep a card active.

You card with the lowest limit. A low limit credit card is probably having little effect on your debt utilization ratio. Closing low limit plastic can help limit your number of cards without great danger of credit score damage.

Closing credit cards doesn’t have to kill your credit score, just make sure you are choosing wisely.

Other points to remember are:

Always look at your debt utilization ratio before closing a credit card. If your ratio is going to be over 30%, don’t do it.

Always keep at least one credit card open and active, and pay the bill on time. This will give you points for managing credit wisely.

Always keep your oldest credit card open and active.

Take these tips to heart to ensure that whittling down your lines of credit has minimal impact on your credit score.

~~Susan McCullah is the Product Development Director for Data Facts, a 22 year old Memphis-based company that provides mortgage product and banking solutions to lenders nationwide

If you would like to speak with me about this or need any help, would like a copy of your credit report, please give me a call at 615-777-4663 or email me at george.margrave@migonline.com

Happy Thanksgiving!

Cash On Hand?

Today's topic is cash and miscellaneous deposits to your bank account. When processing a loan, it is an issue.


And you say how can that be a problem? When an underwriter looks at a bank statement and sees deposits that are not payroll they have to find out where it came from. They worry that it is unreported income which is a problem on loans with income limits such as THDA, or they worry that there is an unreported obligation, so you can save yourself a lot of aggravation if you have cash and can't document it by not putting it in your account. If you are going to need it to make your down payment, we need to address it. Call me for insight.

Should you have any questions or need help with any of this, please feel free to contact me at my office at 615-777-4663, my cell phone at 615-481-5626 or via email at George.margrave@migonline.com .

What is the rate today?

Every day we get these calls that start out with “what is the rate”? After discussing the situation it becomes apparent that they have found something like 2.875% interest on the internet somewhere. But no one told them how much the points and closing cost would be. If you pay enough you can buy almost anything. And if they get a little further in the process, they are asked to send their personal information to “who knows where”. The company may not even have a retail address. So when something goes wrong who can they talk to?


Or which person suddenly has all that personal information? ID Theft anyone?

I’m just sayin…………..

Remember you can always reach me via email at George.Margrave@migonline.com via telephone at 615-777-4663 or visit my website at http://www.mignashville.com/ I am more than happy to speak with you.

THDA Tax Penalty?

If you or someone you know had a THDA loan (for first time home buyers), there may be an assumption that the home cannot be sold for 9 years.  Or if it is sold, many think there is a big penalty. These misconceptions come from the signing of a form that explains the recapture tax.  Since the bonds that fund these loans are tax free, the government decided to put this tax in place.  In reality, very few people are affected by it.  It is based on selling the home for a handsome profit and having a large increase in income.  In fact if this happened to you, it would probably be the best thing that could happen.

If you want to talk more or find out what we can do for you, please contact me at 615-777-4663 or via email at george.margrave@migonline.com I would love to chat with you and see what it is that I can offer you.  Thanks for your time!

HARP 2.0

HARP 2.0

You may have noticed in the news that the administration has announced a new program to help people who are under water on their mortgages refinance to today’s lower rates. The details will not be out until 11-15 with implementation to happen around December 1. But even then there will probably be more time lag to get systems in place to handle it. The benefit will only be for folks that have Fannie Mae or Freddie Mac loans. You can look up your property and see if your loan might be one that benefits by going to the following web sites.

http://www.fanniemae.com/loanlookup/

https://ww3.freddiemac.com/corporate/

If you have any questions or want to discuss your options, please contact me at 615-777-4663 or via email at George.Margrave@migonline.com .

Thin Credit?

As you have probably heard, the credit guidelines have continued to get tighter. As a result, a first time homebuyer is able to get a loan without a credit score. However, all other buyers must have at least one credit score. We teach clients with no scores to get a secured credit card. This helps to build your credit and get that much needed score. Call me and I can refer you to a company with good secure credit cards. ( one with reasonable fees)



When you get the credit card you should use it every month, but do not charge it up more than 30% of the credit limit. When the bill comes, pay the balance down to $10 immediately. Do this each month for six months for optimum scores. You can do two accounts like this. In fact you can do an installment loan in a secured manor as well.


Once you have credit scores we can move forward as long as your middle score is at the acceptable minimum standard. We will also require that you have at least three active trade lines with a 12 month history. If they do not exist, we will verify that the last 12 months of rent are paid on time. Rent needs to have been paid by check and we will require copies of the cancelled checks. Other trade lines can be utilities (phone, electric, gas, water), cell phone, car insurance, anything that is paid on a monthly basis and can be verified.


I hope this helps you understand what it is we need, how you can bring up your score or even get scores and what you can do to make it happen. Should you have any questions or need help with any of this, please feel free to contact me at my office at 615-777-4663, my cell phone at 615-481-5626 or via email at George.margrave@migonline.com . Don’t forget, this is for folks with no credit scores or limited credit.

Triggering

Mortgage Triggering is a frustrating, pull-your-hair out phenomenon that rears its ugly head frequently during a refinance boom. If you are a mortgage lender and haven't experienced it yet, lucky you.


Mortgage triggering is the process that some lenders use to gain customers.


Basically, lenders purchase these 'trigger leads' from the bureaus or other companies. The leads are consumers who have recently had their credit pulled in order to qualify to buy a home. Once purchased, the lenders call these consumers, (who could be YOUR customers) and extend them a firm offer of credit.


This process is covered by the FCRA as a legal practice. (FCRA, 15 U.S.C 1681). The wording of the language is: 'to obtain a consumer's private information an institution must have consent OR present a firm offer of credit in their solicitation'. So, when lenders buy these leads, they must call, email, or mail a firm offer of credit to the consumer.


The argument for triggering is that is gives consumers a choice. Triggering offers consumers more than one option for a mortgage loan.


The argument against triggering is that unscrupulous loan officers may make 'too good to be true' statements, or run a bait and switch scheme using the consumers' information.


Through the years, Data Facts has answered this question many times. Customers are confused and frustrated by the sometimes multiple phone calls they receive from competing lenders. They feel their private information has been sold. And it has.


How customers are triggered: lenders set up their criteria based on the credit score, LTV ratio of the loan, and even the geographic area of consumers they wish to target. Once set up, the consumers that fit these criteria are monitored by the triggering company. When a consumer that is on this list has their credit pulled for a mortgage loan, this triggers in the system. The lender then receives this information, and calls the consumer with an offer.

From DataFacts

This is very frustrating for us and our customers. I think (and I hope you do to) that it should not be allowed. Tell your congress person.  You can reach me at 615-777-4663 or via email at george.margrave@migonline.com

Building Credit After a Bankruptcy

In 2010, over 1.5 million people filed bankruptcy, and 2011 is expected to bring much of the same. Filing bankruptcy is one of the most damaging things to a credit score, potentially dropping your score by 150 points or more, reducing your credit creditworthiness and costing you more in increased finance charges and interest rates. Though bankruptcy remains on your credit report for 7 to 10 years, there are steps you can take to start turning your credit around in 12-18 months.


Check your credit report: This is probably the last thing you want to do, but it's important to know exactly your current credit status, while also confirming all information is correct. The longer incorrect information stays on your credit report the longer it could possibly negatively affect your credit score.


Go to www.annualcreditreport.com and pull your credit report. This free report will not contain a credit score, but you just want to make sure everything that should have been discharged in your bankruptcy shows a zero balance. If it doesn't, contact those creditors and the credit bureau to make sure the information gets updated.


Make on-time payments to remaining debts: Many people mistakenly believe that a bankruptcy will wipe out all debts, but some, such as student loans, child support and, in many cases, mortgages will not be discharged. By keeping on top of payments on those remaining loans, you'll receive a credit boost for paying your bills over time.


Get a Secured Credit Card: Secured credit cards let you take baby steps back into the credit game. To offset the card issuer's risk, secured cards require a deposit that serves as your credit line, so if you put down $1,000, you'll have $1,000 in credit available. Apply for a secured credit card through a local bank or credit union, but make sure you do your research first. Many secured credit cards have extremely high fees, and not all report to the bureaus. Make sure the card you are using has the lowest APR, low fees and most importantly reports to the credit bureaus.


Obtain a small loan with your bank or credit union: Many banks and credit unions will allow you to take out a personal installment loan based on the money in your savings account. FICO likes to see a "healthy mix" of credit lines, such as both revolving and installment. Getting an installment loan that is secured by your savings will allow you to start building credit through another resource other than the secured credit card. Remember to ask your bank or credit union if this loan will be reported to all 3 bureaus. The key is to build credit and increase your credit score. If the hard work you are doing is not being reported, you will not see any of the benefit.


And lastly, after several months of responsibly using your secured credit card, (paying on time, keeping balances low, etc) and making your monthly installments on your secured loan on time, you should be able to get approved for an unsecured credit card. Apply for a small gas card, or a department store card, as these are typically easier to obtain.


Once you've shown your ability to pay on time and your credit score has raised accordingly, ask the card issuer to lower your rate, or apply for a card with better terms. There's no one-size-fits-all approach to rebuilding credit after bankruptcy, but with consistent financial discipline and a little patience, you will get easier access to credit again.

From Data Facts

You can reach me at 615-777-4663 or via email at George.Margrave@MIGonline.com

What about the scams and teasers?

It is no accident that many computers put any message about mortgages in the spam filter. That is because there are an unbelievable number of bogus emails sent out with outright lies as well as rates way below what can be delivered. Have you seen the one about 2% fixed rates? Well as low as the rates are, there is always someone willing to lie about how low they can quote you. But they don’t tell you what kind of loan cost is involved. As always when something seems too good to be true, it probably is. Many times they call an ARM that is fixed for three years fixed. That is the kind of stuff that caused some of the problems the country now is going through.

You don’t even have to read your e-mail. The internet is full of schemes to separate you from your money. And even snail mail still delivers its share of problems. I think my personal favorite is the “no brainer” ad on the radio. Oh well I am always willing to give you an honest opinion, any time you want to check something.

I can be reached at 615-777-4663 or via email at George.Margrave@migonline.com.

Which buyers can benefit from today's record low interest rates?

All of them-- that is who. Since this country started keeping records these are the lowest interest rates that we in the housing industry have ever seen. Yes it is a little hassle to get qualified, but if the buyer will work with us, we can usually get it done. And you don't have to have a lot of money contrary to what you read. With a little info we can give most anyone a quick analysis of what size home they can buy. Yes you can wait until the economy is better. But if your job is secure now is the time. The price and the payment will never be better in my opinion.

I can be reached at 615-777-4663 or via email at George.Margrave@migonline.com .

Lowest Rates Ever! (No really)

If you have been keeping up you know we have the lowest rates since I can remember (I think they are the lowest since the records were kept.) You have been hearing radio ads about this for the last two or three years, but now it is really true. How can it benefit someone who wants to refinance?


If you have an FHA loan at about 5.75% or higher, it would probably benefit you to lower your rate on another 30 year loan in the 3’s or low 4’s. For a little more we can pay your closing cost. If you can go to 15 year, it will probably still increase your payment but can make a huge difference in your future equity position. The kicker with FHA is the MIP payments eat up some of your interest savings. If you don’t have equity, we can do a streamline loan with no appraisal, but you have to pay the closing cost out of pocket, or we as lender might be able to pay it for you. Call me for details.

If you have a conventional loan, we are most likely going to have to have an appraisal. There will have to be enough equity to finance closing cost or you could pay them or once again we as lender may be able to do it. Once again call or email your questions. Just click on reply.

The bigger the loan the more savings you get. Also once again don’t forget the 10 or 15 year loans if you can handle the bigger payment.

I can be reached at 615-777-4663 or via email at George.Margrave@migonline.com .

5 Questions to Ask Yourself Before Buying a Home

In most parts of the country, the housing market is good (or great!) for buyers right
now - interest rates are bizarrely low, lots of inventory means lots to choose from, and the cost of renting has increased in a lot of markets. But just because the market’s good doesn’t mean it’s the right time for everyone to buy. The decision whether to buy a home is a very personal one; you need to carefully examine your own situation to determine whether it’s right for you.

So, what are the questions you need to answer in deciding whether you’re ready to buy? Here are some of the big ones:

1. Do I have enough money for a down payment?

And how much, exactly, is “enough?” Today’s minimum down payment requirements range from 3.5 percent on an FHA loan to 10 or even 20 percent for conventional loans. That means coming up with anywhere from $7,000 to $40,000 on a typical $200,000 house. While there are still programs that can give you a down payment assist (see last week’s post, 5 Insider Secrets for Coming Up With Cash for Down Payment), much of the heavy lifting here will need to come from you - in the form of saving up your hard earned cash. And keep in mind there are also closing costs you’ll probably have to pay in cash, which can run as high as 3-4% of your total purchase price.

Talk with a real estate pro and a mortgage broker in your areas to start wrapping your head around how much “cash to close” (i.e., down payment + closing costs) will run, approximately, on a local property that would meet your needs. Can your savings cover this? If not, where will you get the money - what’s your plan for coming up with it? Putting down as much as you can a) makes you more attractive to lenders, so you might qualify you for better loan terms and b) gives you additional purchasing power, either decreasing your monthly mortgage payment or increasing your purchase price limit for a home.

2. Can I handle the not-so-glamorous aspects of homeownership?

If you can’t even fathom the prospect of having a home maintenance crisis without having a landlord to call to fix it, you might want to reconsider homeownership - or at the very least, buy a lower maintenance condo or townhome in great condition, and make sure you get a home warranty! As a home owner, after all, you essentially are your own landlord. Pipe bursts in the middle of the night? Guess who’ll be up fixing it or calling (and paying) the plumber? (Hint: you.)

There are also some less-than-glamorous bills you’ll have to deal with in your new role as a homeowner that you never laid eyes on as a renter: property taxes and hazard insurance, to name two. When you go from renter to owner, you also need to account for the cost of appliances and maintaining the property’s roof, windows, and landscaping, among other things.

3. How long do I intend to stay in the house?

If you think you might move out of the area next year, then you really shouldn’t be thinking about buying a house (unless of course, you want to play landlord and rent it out after you leave - a prospect which requires its own risk/rewards analysis). For your home purchase to pencil out as a good deal, financially, you’ll shouldn’t buy unless you’re comfortable staying in the house at least 5-7 years - even longer, if you’re buying a home in a foreclosure hot spot or an area with a sluggish job market.. This gives you some time to build up equity and make up for the costs of buying, selling and moving.

4. Are my job and finances stable?

Maybe you just went through a major career change and are in the process of working your way back up from the top. Or maybe you work in a field that has been hit really hard by layoffs and cutbacks. The worst case scenario is to find yourself in a spot with mortgage payment you have no way to make, when you could have avoided that by seeing the writing on the wall. If you feel like there’s a real chance you could lose your job or income tomorrow, you may want to hold off on buying a house - that has the added bonus of giving you the geographic freedom to move, if needed, to get a new job.

Is there really such a thing as 100 percent job security in today’s economy? Probably not. But the best practice is to be confident that your finances could handle a temporary loss of income and still make your mortgage payments, before you buy. One way to do this is to have enough money in the bank to cover 4-6 months’ worth of living expenses, calculating them to include your mortgage payment - before you deem yourself ready to buy. That way, even if you lose your job with no warning at all, you’ll at least have a reasonable window of time to find a new one without digging yourself into a hole - or worse, losing your home altogether.

5. What are my real reasons for buying?

Buying a home is a long-term commitment that will have massive impacts on your lifestyle, your family and your finances. In other words, don’t do it unless you’re really sure you want to and are ready for the lifestyle change - don’t let someone else talk you into it. Worthy reasons renters with homeowning readiness give for their decision to buy include some or all of the following:

• You want to build equity instead of paying a landlord. Fact is, if you get a fixed rate mortgage and make the payments for the full term of the loan, you'll eventually pay it off. That's not possible when you're renting.

• You want a place to call your own, where you can paint a wall purple, add a pottery spinning studio or build your dogs an obstacle course (oops - that's my reason for homeownership!), because it's your prerogative.

• You want the tax advantages of homeownership.

• You want a stable place you and your family can live for as long as you'd like.

Ask yourself these questions, and be honest with your answers. If you really want to buy, but your answers to these questions today don’t weigh in that direction, it doesn’t mean you’ll never own a home. It’s usually just a matter of strategically timing your purchase out a year or two when your savings, your career and your lifestyle are in alignment with the implications of ownership - consider working closely with a real estate broker and a mortgage professional to get an action plan in place and start working that plan.

Trulia

You can reach me at 615-777-4663 or via email at George.Margrave@migonline.com ; I would love to hear from you or help you in any way I can.  Give me a call and let's talk.

Media Myths Explained

I want to address some of the myths that the media is promoting.


First and probably foremost, they want you to believe that someone has to have 20% down to buy a home. That is far from true. There are several ways (especially if you are a Veteran, a first time buyer or buying in a rural area) to actually buy with zero cash.  Just talk to me about it. Even if none of those situations fit you, an FHA loan requires only 3.5% down and that can be a gift.

They also want you to think you can buy with only the best credit score. That isn't true either. While the credit requirements are higher than they have been, we can often make a score of 620 to 640 work. Once again a little consulting from me can make the difference. Often we can tweak a couple of things and rescue a situation that won't work today and make it work in a couple of months.

What I do is figure out how to makes loans work for you. It is almost like hiring me as your lawyer. It is my job to represent my client and to get you the most desirable loan or I don't get paid. My number is 777-4663 (HOME) or  e-mail me at George.Margrave@MIGonline.com .

The Local Real Estate Market

The media focuses on the national picture. But let’s stop and consider the local picture. The median price (not the average) for existing single family homes has dropped from $196,600 in 2008 to $173,100 in 2010. At the same time the interest rate has dropped from 6.15% to the present low 4's.

If we look at appreciation in Tennessee we see that the 5 year rate is positive at 2.79% and the ten year rate a great 28.06%. So from where I sit it is an unbelievably great time to buy a home in Tennessee. If you already own one, maybe it is time to sell it and move up. Or if not that, maybe to refinance and get a 15 year rate in the low 3's. No you didn’t hear wrong. Give me a call at 777-HOME (4663) or email me at George.Margrave@migonline.com .

REALTOR.COM Traffic Confirms Its Popularity

If anybody doubts the amount of consumer traffic at REALTOR.COM, the June 2011 traffic reports should dispel those doubts:

• 31% more minutes are spent on REALTOR.com than the next closest competitor (Zillow).

• The average visitor spends 18.6 minutes, and viewed 44 pages while searching properties on REALTOR.com.

• More pages were viewed on REALTOR.com than the next 3 competitors combined (Trulia.com, Zillow, Homes.com).

• REALTOR.com received 95% more visits than the next closest competitor (Zillow).

• REALTOR.com has the most average daily visitors, 97% more daily visitors than the next closest competitor (Zillow).

• 170% more pages were viewed on REALTOR.com than the next closest competitor (Trulia.com).

• REALTOR.com real estate search app for iPhone and iPad has been downloaded almost 5.2 million times and growing. An average of 10 listing detail pages are viewed per user per day.

• Android app for REALTOR.com has had over 770,000 downloads and an average of 9 listing detail pages are viewed per user per day.

From Tennessee association of Realtors


You can reach me at 615-777-4663 or via email at george.margrave@migonline.com

The Sky Is Not Falling

This week's post comes from the Cabot Wealth Advisory


July 25, 2011

Salem, Massachusetts
By Timothy Lutts


I don’t know about you, but I’m sick and tired of all this debt ceiling talk … the distortion of facts, the posturing and the brinksmanship. But that’s politics and I expect no less from the elected representatives of our oh-so-diverse country.


What bothers me more than that is the way the media is eating it up—even fanning the flames—by constructing terrible scenarios of what might happen if the debt ceiling isn’t raised.

What’s lacking is a rational voice.


So today I’ll provide it, by looking at this from a perspective most people haven’t considered.


We start back in 1999, when the whole world was preparing for the countdown to the new millennium, or Y2K. The big fear then was that computers that had been programmed to treat years as two digits might think we were back in 1900 when the calendar rolled over. And if those computers belonged to banks, airlines, electric and water utilities, etc., the resulting chaos, dubbed the Y2K crisis, might bring civilization to a standstill … at least until someone rebooted.


John Hamre, United States Deputy Secretary of Defense said, “The Y2K problem is the electronic equivalent of the El Niño and there will be nasty surprises around the globe.”


But nothing happened. There were a lot of parties, and life went on.


On a smaller scale, consider two weekends ago.


Residents of Los Angeles were warned that the Sepulveda Pass Improvement Project, in which 10 miles of normally congested highway were shut down for 53 hours, would result in massive gridlock. The potential nightmare was dubbed Carmegeddon.


Posie Carpenter, chief administrative officer of The UCLA Medical Center, said, “We see this as being a disaster—only it's a planned disaster."


But nothing happened. In fact, the construction project was completed in just 36 hours, 17 hours sooner than expected.


The similarities in both cases should be obvious.


There was a well-publicized threat. There were widespread warnings about the threat. There was wide-scale adaptation to the threat.


And as a result, there was little or no pain.


In fact, thanks to the Y2K threat, a lot of computers were updated, which provided a nice shot in the arm to the tech sector.


And in LA two weekends ago, a lot of folks walked, rode bikes or used public transportation, and if some of them stick with that alternate mode of transportation, everyone will benefit.


Coming back to the debt ceiling crisis, which still lacks a catchy nickname, I think we’ve had ample and widespread warning, and I see little chance that the parties in power won’t come up with a compromise before the time bell rings. But I also see that each party will refuse to compromise for as long as it thinks it can gain political advantage from doing so … which could be right up to the wire.


And what will be the advantage to us from this “avoided disaster?”


Ideally, a smaller deficit, and the start of a true trend toward an improved national balance sheet. I look forward to it.


I can’t avoid sticking this in here.


Concern Yourself Least When Others Fear Most


The corollary, by the way, is this: Trouble comes from where it’s least expected.


So what should you worry about? Well, if you live in Southern California, and are happy to have avoided Carmeggedon, I suggest you think hard about an earthquake. I recently spoke with a seismic geologist who’d recently relocated from Los Angeles to Boston, and he told me he’s very happy to be on solid ground.


I can be reached at 615-777-4663 or via email at George.Margrave@MIGonline.com

A Ray of Sunshine is Coming....

A ray of sunshine is coming. At least I think so if the President and Congress can get the debt limit extended. That will be because the media will start publishing some better figures. And that is because for a long time the reported housing statistics have been compared to the time period when we had the first time homebuyer’s tax credit. July will be the first month that we don’t have that comparison. And just maybe some of the other negatives will die down. I do know you can take advantage of the real estate close out sale to get a great value and finance it with a great interest rate. And contrary to what you hear, you don’t have to pay 20% down. With VA it is zero down, with FHA it is 3.5% down and with conventional it is 5% down.


Also the first time homebuyers don’t have to have any money. Call and ask me how YOU can buy a house.

You can reach me by phone at 615-777-4663 and via email at George.Margrave@MIGonline.com .

Here is some good Real Estate News

Forbes, in a study just completed with Praxis Strategy Group, projects Nashville to be the No. 3 boom town in the coming decade. That is out of the 52 top cities in the US. They looked at recent growth and demographic information like family formation and growth in educated migrants among other things. Forbes also wrote: “The country music capital, with its low housing prices and pro-business environment, has experienced rapid growth in educated migrants, where it ranks an impressive forth in term of percentage growth.”


Now this is the kind of news we need to show our potential homeowners. The values and market of the future may be very strong.



You can reach me via phone at 615-777-4663 or via email at George.Margrave@MIGonline.com

Laptop Safety

This is a little off the subject, but not really, since about all the Real Estate and Mortgage people I know live thru their laptops


Are you tired of having a trusty computer for work and pleasure? Do you relish the anxious insecurity of knowing a creeper somewhere could be browsing all your personal and corporate information? Or are you just tired of things going smoothly at work and want some thin ice to walk on for a bit? Then this post is for you!

There are a lot of ways to make sure your laptop gets stolen and all your files compromised. Not only can you lose your personal documents, applications, pictures and videos, but your company’s confidential, proprietary data and sensitive customer data as well! It’s easier than you would think to completely mess stuff up, lose hundreds of dollars and make things pretty miserable for yourself!

Here is our patented, six-step, surefire way to make sure your laptop gets stolen and all your hard work gets tossed out the window:

1. Leave your computer in your car in plain sight, like the front or back seats

2. Carry your laptop in an obvious “laptop bag”

3. In public places like coffee shops, leave your computer on the table when you get up

4. Don’t have a secure system login password

5. Don’t back up your important files once a week and before going on trips

6. Assume it’s safe and will not get stolen today

Protecting your computer can be a little like convincing yourself to floss. You know what you should do. But do you do it? The answer to that question is the difference between a major disaster and a minor setback.

From Claris networks

You can reach me at 615-777-4663 or via email at George.Margrave@migonline.com

Own, Rent, or Borrow?

The housing market still faces many challenges. High unemployment, foreclosures and other distress sales are keeping negative pressure on prices. This of course is good news if you are looking to buy as low rates and lower prices have brought affordability to record levels.

How Affordable? - Since 1963, it has cost an average of approximately 43% of "per capita" or individual income to finance the cost of a median priced home (20% down payment and prevailing 30 year fixed rate mortgage). Right now, it's only about half of that cost at approximately 22%.



Are you holding off on a purchase for fear that prices might fall further? - Chances are that some sellers might be thinking the same thing. If you're smart about it, you can use that as an advantage to strike the best possible deal on a home today for once a seller believes that prices have bottomed or are going back up, your advantage will be gone.



Don't confuse Price with Payments - Gambling on the expectation of a lower price tomorrow at the risk of higher rates can cost much more in the long run than locking in a sure thing today. Ex. $200,000 30 Yr. fixed loan @ 4.625% = $1028/mo. today vs. $180,000 @ 6.5% = $1137 per month later. In other words, paying less can still cost you more.



Own, Rent, or Borrow - One way or another, a home is something we all need every day. The numbers here tell the story and it's no secret that values have fallen, yet over time, that's not the case. As you can see by the chart, values over the last 10 years in most states show very healthy appreciation. And over the long haul (map), all states have positive appreciation.



We don't get a history lesson in the news because the news is about the moment and the more dramatic the better. That's what sells advertising and that's how they get paid. For the rest of us, taking a rational, longer term view of things makes more sense. This is particularly true when it comes to a home, for this is something we are likely to own for many years rather than just moments.



If you would like to discuss your options or just want to find out more, you can reach me
at 615-777-4663 or via email at george.margrave@migonline.com.

Can you pay 20% down or do you have 20% equity?

You don’t have to meet this requirement today?

But if our Government has its way, that would be the case. It is time to tell your congress person that this is beyond all common sense. Do they want to finish off the housing industry?

Surely saner minds will surface. I have been ignoring it, just knowing they can’t be that dumb. But it keeps coming up.

So just in case if you are not prepared to meet those guidelines let’s get you in a new home or refinanced while we live by rules that we know and have had for many years.

Call me to get started, you can reach me at 615-777-4663 or via email at george.margrave@migonline.com .

Your Home

Don’t let the continuous bad headlines about Real Estate bug you. According to the National Association of Home Builders, owning your home still remains “essential to the American Dream.” 75% of those polled said owning a home is worth the market fluctuations. Plus, a healthy 95% of homeowners say they are happy with their decision to own.

But what about those of you who do not own your home? You probably read that it is impossible to qualify. That is just newsprint gone bad. But that is where I come in. My team's experience level is second to none. Yes, there might be a lot of paperwork. But we are representing you and it is our job to get it done. No we can’t pay your bills for you, but most of the time we are successful in financing a new home for the family that needs one. Call me.

I can be reached via email at george.margrave@migonline.com or via telephone at 615-777-4663.

SEVEN CREDIT SINS

These are the 7 worst things for your score

Late payments. It may not seem like a big deal when you miss a 15 Dollar payment. But it can be a big hit to your score and it will be there for 7 years.

Collections. This is when the credit gets tired of calling you and he turns it over to the collection agency It is 7 years bad luck again.

Charge offs. This is when the creditor gives up. It is there for seven years once again.

Public Records. Bankruptcy, tax liens, judgments and etc. The chapter 7 BK is there for 10 years and the tax liens never go away.

Settlements. This gets mention in the collection area once again seven years

Foreclosures A deed in lieu works the same. They are on the report for seven years again and are a big problem for us mortgage lenders.

Repossessions. The repo man is going to drag your car away with your score following closely.

If you need some advice, you can reach me at 615-777-4663 or via email at George.Margrave@migonline.com

Buy a Home Without the Stress

1. Be prepared. You know you are going to have to supply a box full of documents to your lender. When the thought that you might buy first hits you, start organizing and saving any paperwork anyone could possibly ask for. (I can give you a heads up. Just e-mail me at george.margrave@migonline.com or call 615-777-4663.

2. Plan ahead so that a day or two delay won’t have you paying furniture storage fees and/or living on the street. There are all kinds of things that can cause delays.

3. Pre-approve the other parties at the bargaining table. Is the seller upside down? Does he have the money to close? Does a bank have to approve the short sale? Are there title problems? Will the property meet the guidelines of the lender? And on and on.

Just don’t get caught here.

Five Bad Home Improvement Ideas

Five Bad Home Improvement Ideas


When considering adding value to a home, you consistently hear from the real estate industry that updated bathrooms and quality kitchens stand out in a home sale. Those are proven sale closers. There are certain other improvements you can make to your home that will beautify it or create convenience for your family. When it comes time to selling, however, those improvements may do nothing to increase the value of the property and may even turn off potential homebuyers.

Over-the-Top Renovations

Au contraire mon frère, not all renovations will raise the value of your home. Just `cause it's bigger doesn't mean it will be perceived as better by future homebuyers. Unless your home is located in Beverly Hills or some other very posh neighborhood, don't install the bathroom with the supersized steam shower, imported Italian marble and several different spray heads ... unless you have the money to do it for your own pleasure and enjoyment only. That kind of improvement doesn't typically do anything to increase the value of the average home.

On the other hand, if you updated an old bathroom, you could see an increase of several thousand dollars to your home's bottom line. Real estate professionals suggest that homeowners pour over local home listings to see what amenities are the standard in your area, then upgrade your home to meet it. If you overdo it, however, you may not recoup your investment.

Swimming Pools

If you think installing a swimming pool in the back side of your home will draw hoards of homebuyers clamoring to make offers on your home at sale time, you'd be wrong. Some may consider it a perk, but others may perceive it as a pain with all the maintenance it will require.

Homeowners have even paid to have their swimming pools buried to create more yard space. If you shell out the expense to build one, don't expect your home's value to budge. The only exception to building a swimming pool is if you live in states where they are considered the norm.

Home Office Renovations

Although, a home office is often an amenity appreciated by those shopping for a home, it should be built with frugality in mind. Overhauling an office doesn't pay off when it's time to sell your home. Don't steal usable space from another living area to create a home office. Instead, make sure the space can easily be converted back into a bedroom or other living space if needed. If you decide you just have to have the built-in Curly Maple wood shelves, know that you will only recoup around 50 percent of your cost at sale time.

Unique Builds

Home magazines are always coming up with clever and creative ways to change the look of your living space. Some are exotic and outlandish, but they can pique your interest. Tempted to put a classic disco ball with lights in your bedroom, a constellation ceiling in your family room or a peaceful Koi pond in your back yard? Avoid making outlandish changes to your home or changes that will be perceived as adding work for a future homeowner. Don't be tempted to incorporate these ideas into your own home, unless you don't plan on selling anytime soon. Homebuyers may not share your enthusiasm.

Roof Renovations

If your roof needs repair, don't hesitate to have the work done. It will be one less issue you'll have to deal with when listing your home. If in your pursuit to list your home you think replacing your roof with cedar shakes or clay tiles will increase the value, think again. Although they have the ability to make your home stand out, they probably won't inspire homebuyers to pay more for them. So, unless you have the money to burn, keep it simple when preparing your home to be listed on the real estate market.

Kimbrough Gray -

I can be reached at 615-777-4663 or via email at George.Margrave@MIGonline.com

Rents Expected to Climb in 2011

At long last someone other than your Realtor or Mortgage loan officer is recommending that you should buy rather than rent. According to an author at CNN Money if you can’t afford to buy a home, you may also have a problem renting. A record number of renters are spending more than half their income on housing according to a report released by the Harvard Joint Center for Housing Studies. And more middle-class folks are feeling the pinch.


Rents are expected to climb more than 7% this year where as housing has become very affordable to purchase. Part of the problem is that there is a flood of new renters who have had their homes foreclosed or lost in natural disasters.

If you think you can’t buy, you might be surprised. It is my job to figure out the answer to that puzzle for you.

I can be reached at 615-777-4663 or via email at George.Margrave@migonline.com

Credit Issues

Today we had a meeting with a Credit consulting and restoration company. Low credit scores and incorrect credit reports are becoming a large part of what we deal with every day. Now we are perfectly capable of helping get scores increased, but there are many cases where folks need their hand held. We can only do so much, but it has been successful. We are successfully getting scores increased for probably two families per month. There are just so many more people that need this kind of help. So if you know someone who needs us, please tell them and then let me know their number or e-mail address. If we can’t help we will put them with someone who can.

I can be reached at 615-777-4663 or via email at George.Margrave@migonline.com

Owning=More Affordable Than Ever

Owning a home is more affordable than renting in 39 of the nation's 50 most-populated cities, based on the latest quarterly rent vs. buy index from Trulia. Falling home prices and rising rents make buying cheaper in 78 percent of cities, up from 72 percent in the previous quarter; the price-to-rent ratio fell quarter-to-quarter in most of the 50 cities.


Some signals to pass on to your clients.

1. Mortgage rates are at a point below 5% in most cases, which really helps your numbers

2. Landlords are seeing an opportunity to raise their rates and they are doing it.

3. The career and income of many people is stabilizing, so that there is a comfort level with buying that home.

The signs are there that this is the time. Tell people you talk to that I will run their numbers with no obligation to them.

You can reach me via telephone at 615-777-4663 or via email at George.Margrave@migonline.com you can even follow me on Facebook...check it out.  Thanks for reading!

5 Things Home Buyers Do That Turn Sellers Off (and Kill Deals)

On today’s market, every savvy seller wants to know what turns buyers off, so they can get their homes sold as quickly as possible, for as much as possible. But buyers, take note – there is a minefield of seller turn-offs you can trigger that hold the potential to keep you from getting the home you want at the best price and terms, or to unnecessarily complicate dealings with your home’s seller.

Lest you think all of today’s sellers are under the gun and will just put up with whatever behavior buyers dish out, be aware that there are still many multiple offer situations in which buyers have to compete with each other to get a home – buyers who trigger these turnoffs tend to lose in those scenarios. Also, avoiding these seller turnoffs can create a transactional environment of cooperation and avoid things turning adversarial. That, in turn, can empower you to score a better price, get extra items you want thrown into the deal, and even negotiate more flexibility around your escrow and move-in timelines – all perks that can make your life easier and your budget go further.

For sellers, these turnoffs pose the potential of irritating you out of an otherwise good deal – maybe even the only deal you have!

Here’s a few of the most common buyer-perpetuated seller turnoffs, with tips for sellers on how to keep an emotional (and economic) even keel, even if your home’s buyer makes some of these waves:

1. Trash-talking. Trash-talkers are the home buyers who think they’re going to negotiate the list price down by slamming the house, telling the sellers how little it is really worth, how the house across the street sold for nothing, why the school on the corner should make them desperate to give the place away, etc. This strategy never works; in fact, when you attack a seller and their home, you only cause them to be defensive, and think up all the reasons that (a) their home is not what you say it is, and (b) they shouldn’t sell their home to you!

Sometimes this happens with buyers who actually love a house and just walk around it fantasizing about all the ways they would customize it to their tastes while a seller is there. Sellers: avoid being at home while your home is being shown. Buyers: save your commentary for your agent; if you do encounter the seller in person keep your conversation respectful and avoid critiquing the house or the list price.

2. Being unqualified for mortgage financing. When a seller signs a buyer’s offer, most often the seller agrees to effectively pull the home off the market, forgoing other buyers who might be interested. As such, the only thing worse than getting no offers on your home is getting an offer, getting into contract, then having the whole thing fall apart when the buyer’s loan falls through – especially if that could have been predicted or avoided up front.

Sellers: Work with your agent to vet your home’s buyers’ qualifications, including their loan approval, down payment and earnest money deposit – before you sign a contract. It’s not overkill for your agent to call the buyers’ mortgage pro before you sign the contract and get a level of comfort for how robust their qualifications are. Buyers: Get pre-approved. Seriously. And make sure that you don’t buy a car, quit your job, deposit lottery winnings or do any other financial twitchery between the time you get loan approval and the time you close escrow on your home.

3. Making unjustified lowball offers. No one likes to feel like they are being taken advantage of. And sellers generally know the ballpark amount that their home is worth, as well as what they need to sell it for to get their mortgage paid off. Yes – the price you pay for a home should be driven by its fair market value, rather than the seller’s financial needs, and deals are more available in a market like the current one, in which supply so vastly outpaces demand. But just throwing uber-lowball offers out at sellers hoping one will hit the spot is not generally a successful strategy, especially if you really, really want a given property.

Sellers: Don’t get overly emotional about receiving a lowball offer; counter at the price you and your agent decide makes sense based on the total circumstances, including your motivation level, recent comps and the interest/activity level your listing is receiving. Buyers: Work through the similar, nearby homes that have recently sold (a/k/a comparables) before you make an offer to factor the home’s fair market value into your offer price – also factor in how much you want the place, too. Don’t be amazed if you make an offer far below asking, and don’t get a response.

4. Renegotiating mid-stream. Sellers plan their finances, moves and - to some extent – their lives around the purchase price a buyer agrees to pay for their home. If you get into contract to buy a home, find out during inspections that costly repairs need to be made, then propose a lower sale price, repair credit or even actual repairs to the seller, that’s sensible and fair. But if you were aware that the property needed a lot of work before you made an offer on it, then you come back asking for beaucoup bucks’ worth of credit or price reductions midstream, expect the seller to cry foul. And holding the seller up two weeks into the transaction because you caught a case of buyer's remorse? Not cool, and not likely to foster the spirit of cooperation you may need to get your deal closed.

Sellers: avoid mid-stream price renegotiations by having a full set of inspection reports and repair bids at hand when you list your home. Buyers: try to avoid renegotiating the entire deal unless you get some major surprises at your inspections or inflating small repairs to try to justify a major price cut.

5. Misleading or setting the seller up. Remember when we talked about buyer turn-offs? Being misled by listing photos or very fluffy property descriptions was high on the list. The same goes for sellers.Offering way over asking with the plan to hammer the seller for a reduction when the house doesn’t appraise at the purchase price? #LAME Making an as-is offer planning the whole time to come back and ask for every penny ante repair called out by the inspectors? Lame squared.

Sellers: If you get multiple offers and are tempted to take a sky-high one or one that claims to be all cash, consider requesting proof that the buyer has sufficient funds to make up the difference between what you think the home will appraise for and the actual sale price, and statements showing the cash truly exists. Buyers: Don’t be lame. I’m not saying you have to tell the seller exactly what your top dollar is, but making offers with terms designed to intentionally mislead is really, really bad form – and can result in losing the home entirely if and when your bluff gets called.

I can be reached at 615-777-4663 or via email at George.Margrave@migonline.com

Watch Your Inbox!

You may have heard some vague reports about a security breach at a company called Epsilon. But, if you’re like many Americans, the news didn’t strike you as fairly relevant to your life. After all, you probably didn’t recognize the company’s name or didn’t think you had any affiliations with it.

Or do you?

The reality is, the news wasn’t just about the company Epsilon, but instead was about the more than 40 companies - from Walgreens and TiVo to J.P. Morgan Chase and Ameriprise Financial - who have said their customers were among the email addresses stolen. In other words, even if you don’t know the name Epsilon or have anything to do with that company, your email address may be part of this important news story.

The good news... It appears only names and email addresses were stolen as part of the breach. Most of that information is fairly public - and isn’t as sensitive as, say, a social security number.

The bad news... Clever criminals can put together very convincing email scams to steal the rest of your personal information... right from you, rather than the company.

What should you do?

Whether you were informed that your email address was stolen or not, here are some important tips to ALWAYS KEEP IN MIND when dealing with unsolicited emails... even from companies that you do business with regularly.

1. Never email personal information... even if the company or email looks legitimate! Cyber criminals today can create very sophisticated and convincing emails that ask you to reply with your password or social security number. In fact, some criminals may be creating emails that look as if they’re informational emails about the Epsilon breach as a way to seem even more legitimate. So, if you receive an email asking for any personal information - including your password, account number, date of birth, social security number, and so on - do NOT respond. Instead, look up the company’s phone number on a recent bill, receipt, or other paperwork, and call the company about the email. If it’s a scam, they’ll want to know that it’s going on.

2. Be careful which links you click. Today’s cyber criminals often don’t ask you to reply with personal information, but instead build and link you to fake company websites - in the hopes that you’ll let your guard down and enter your information for them there. Don’t be foolish. Legitimate businesses will not ask for your information - they already have it. Moreover, they won’t collect personal data outside of a secure website. So if it’s not the normal website URL that you use, be extremely skeptical and contact the company by phone if you even suspect it may be fake.

3. Don’t download. If an email looks suspicious be very careful about attachments. Email scams can include malicious programs that look harmless, but once downloaded can either infect your computer or steal your personal data without you even really knowing. The best word of advice is simply: Don’t download anything that seems even the slightest bit out of the ordinary.

Those tips are good advice any time of the year, but they are especially pertinent after widespread breaches. So be extra vigilant when it comes to reading, responding, and clicking on your emails in the weeks ahead.

Mortgage Market Guide

I can be reached by phone at 615-777-4663 or via email at george.margrave@migonline.com. 

New FHA Rules Go Into Effect 4/18/2011

Are you intending to buy a home this Spring with a small down payment (FHA Loan)? If you get it under contract before April 18, your payment will be less than it will be if you wait until after that date. The mortgage insurance the Dept of HUD charges goes up .25% then. That doesn't sound like much, but on a $150,000 home that is $31.25 per month. That is a lot of money over the life of the loan.

So if you need something besides low interest rates and prices rolled back to levels seen in the early 2000s, this could be a great reason to move forward. Call me for details. You don't have to close by then. We just have to order the case number.

I can be reached by phone at 615-777-4663 or via email at george.margrave@migonline.com

6 Myths of Buying a Home

Beware these 'truths' if you are in the market for a house.

FOR MANY first-time homebuyers, owning a home is a dream come true. But oftentimes, they come into the process with some unrealistic expectations and high emotions. If you're looking to buy, don't let your heart control your head. When it comes down to it, a real estate purchase is still a business transaction.

Beware of these myths:

1. "The perfect home is out there." Many buyers tend to focus on the one thing that's wrong with a home rather than the nine out of 10 things that are right. But buying a home is essentially an exercise in compromise. Don't expect to get everything on your wish list. Rather, decide which items are true deal-breakers.

2. "The House has to speak to you." Buyers often get caught up in how the home "feels" or "speaks" to them. But remember, real estate agents and stagers are paid to prepare the home so it evokes pleasant emotions from house hunters. Unless you're buying the furniture that's there, imagine your own belongings and look at the house with a critical eye.

3. "The listing information is always accurate." When it comes to listing sheets and real estate agents, don't take their work for it. If you're looking for specific square footage, bring a tape measure. Count the number of closets, cabinets and electrical outlets in your current home and compare it to homes you are looking at. If the show sheet says "finished basement," verify that it is truly finished.

4. "You should buy as much house as you can get." In real estates heyday, it was normal to see two people living in a 4,000-square-foot, five bedroom home. These days, it doesn't make financial sense. Buy a home based on what you need so you can live comfortably, not excessively.

5. "If your offer was accepted right away, it was too much." Buyer's remorse is common, especially in an uncertain market. But if you were comfortable with the offer you made before you saw the seller's reaction, then there's no point in second-guessing yourself. In any business deal, the goal is to make everyone feel like a winner.

6. "The value of the home will increase." If we learned anything from the housing crisis, it's that homes are not cash cows. Unless you're an experienced flipper, don't expect that $200,000 condo to be worth $300,000 in two years.

ANNALISA BURGOS, senior editor of HGTV's FrontDoor.com; USA WEEKEND, March 18-20, 2011

You can reach me via telephone at 615-777-4663 or email at George.Margrave@MIGOnline.com

The Keep My Tennessee Home Program

The Tennessee Housing Development Agency (THDA) has advised us of "a new program available statewide to assist unemployed and underemployed homeowners cover their mortgage payments while they work to increase their income."
The Keep My Tennessee Home Program is administered by THDA through trained foreclosure prevention counselors. The preliminary eligibility assessment is made at: http://www.keepmytnhome.org/

If an applicant is deemed eligible, the applicant is paired with a foreclosure prevention counselor to continue the loan application. Keep My Tennessee Home will provide 0%, deferred, forgivable loans to homeowners to pay their mortgage and mortgage-related expenses. The payments are sent directly to the servicer. THDA is aware that the program will not help everyone, but they anticipate helping 11,000 Tennesseans over the next four years!

For more information, go to: http://www.keepmytnhome.org/

[SOURCE: THDA]

If you have a friend or loved one, in danger of losing their home this could help.  You can reach me via telephone at 615-777-4663 or via email at George.Margrave@MIGOnline.com

Reverse Mortgages

Do you know what kind of loan you can get with horrible credit or no credit?

It is a reverse mortgage. They can be a life saver. Basically you need to be over 62 years old and have a good amount of equity and you might be in position to never have a house payment again. 80% of people with a Reverse Mortgage would recommend one to a friend. 56% of people with a Reverse Mortgage said they couldn’t afford basic monthly expenses without the loan. 44% of those folks said they would have had to leave their homes without a Reverse Mortgage.

Now is the time to look into it with no rise in Social Security for the 2nd time since 1975, now more than ever this could be a financial tool to help plan your finances and to let you live your life to its fullest. The industry has changed. If you looked at it before and found it too expensive, too confusing or too whatever, let’s look again. There is no charge to find out the answer to your questions. You might even be eligible to receive a monthly check or lump sum of cash as well as no house payment. And by the way, you can buy a new home this way (with a substantial down payment). Call for details.

If you are not in the group that can benefit, give your friend that might my number. They may love you forever.

I can be reached at 615-777-4663 or via email at George.Margrave@MIGonline.com

Congrats!

I am going to take the opportunity to pat myself on the back.  On Feb. 24^th the Nashville Mortgage Bankers gave out their annual awards to the originators in middle Tennessee. For the second straight year I was the only person there getting two awards.   I received the Platinum award for volume ( I have received the gold or platinum for 8 straight years) and the community service awards for my work with first time homebuyers.  My team and I were very honored.

I can be reached at 615-777-4663 or via email at George.Margrave@MIGonline.com

Your FHA Deadline...April 18th

Well, I mentioned last week that FHA is raising the mortgage insurance premium again on April 18^th.  That doesn’t mean you have to close by then.  It means we have to order the case number (appraisal ) from HUD by then.  So this is a new deadline.  Anyone who wants to buy or refinance between now and then should consider this in their decision making. On a $150,000 home this makes a difference of $36 per month.  That is some serious money over the years.  So no pressure from here.  We just want to save you all the money we can.

I can be reached at 615-777-4663 or via email at George.Margrave@migonline.com

What are our leaders thinking? (Or are they thinking?)

Since last October, we have seen FHA increase the mortgage insurance premiums twice (Yes, April 18th they are going up again to 1.15%). Fannie Mae started charging all kinds of extra fees for low credit scores (if you think a 800 score is low) and high loan to values and now we see two new trial balloons floating out there. They are talking about eliminating the mortgage deduction and raising the minimum down payment for a conventional mortgage to 10%.

Now I think all would agree that housing needs to return to some semblance of normalcy for the U.S. economy to start creating jobs in quantities needed to get back close to full employment. Lost in these changes is the fact that loans for the last couple of years have been performing well. Also I have learned that the VA model (that is 100% loans) has also performed much better than expected.

So why can’t the people responsible for these types of policy changes do their homework and do the right things?

As for me and MIG, we have been doing well. That is mostly because of a great client base, longevity and the knowledge needed to survive in this market. Many others are not so lucky.

I can be reached by phone at 615-777-4663 or via email at george.margrave@migonline.com

FHA Increasing MIP Again?

We are hearing rumors that FHA is increasing the MIP (monthly mortgage insurance) sometime in April. They just had a big increase last Fall.

We just get snippets of information from politicians trying to slam more cost on the real estate buyer. I cannot imagine that the last increase has had time to solve the situation it was designed for. So why doesn’t the government just throw some more money at the issues?

The fund is for problem loans and the loans of the last couple of years have to be sound.

You can reach me at 615-777-4663 or via email at George.Margrave@MIGonline.com

Why is This The Best Time in American History to buy a House?

First, mortgage rates (although they are now rising are still very near historic lows.) A five per cent loan has long been unheard of. The only time since 1900 that they were this low was just after World War II. And what happened? The Greatest postwar boom in housing prices-by far.

And we have another thing in our favor. Homes are more affordable than ever. Based on the 40 year history of the Housing Affordability Index, houses are more affordable than they have ever been.

“Affordability” takes three factors into account: home prices, your income and mortgage rates

Home prices have crashed. And mortgage rates are very low. But incomes haven’t fallen nearly as much. So there you have it.

Based on these facts alone, now may be one of the best times in American history-even the very best time to buy a home

So what are you waiting for-- The guy at the water cooler is just a fear monger.

You can reach me at 615.777.4663 or via email at George.Margrave@MIGonline.com

Check It Out

It seems almost negligent these days to go meet with a prospective employer, set your kid up on a sleep-over or even add an old friend on Facebook without first running the company's name, your kid's pal's parents or your old college chum through Google -- just to see. But it's nowhere near as common (yet) to Google or otherwise do an internet search for your home's address.

There are at least six compelling reasons it makes sense to do so, though -- especially if it's an address you're thinking of renting, buying or selling. Smart homeowners would do well to search for their addresses, too, and here's why:

#1. To See If Megan's Law Registrants Live Nearby
Safety first, folks. Megan's law requires law-enforcement authorities to make information available to the public regarding registered sex offenders in their neighborhoods. Nearly every state that has a Megan's law-type sex offender registry has an online version that serves up the names, addresses, sex-offense history, and even photos in many cases, of convicted sex offenders who are registered as living at a certain address. Googling your address and "Megan's law" -- or even your city or zip code and "Megan's law" -- will turn up a quick list of nearby registrants. Alarmism is not a good look -- ever, but many homebuyers with young children highly value this information, especially while they are still in their contingency or objection period, before their home purchase is finalized.

#2. To Find Crime Reports and Data for Your Home and Environs
Cities, counties and state law enforcement agencies all post crime data online, but a Google search for your address or city and "crime reports" is most likely to turn up your local police or sheriff's office's crime map. Or, you can check out the crime stats around a specific property on Trulia’s Map & Nearby tab on the detailed page for your home's address. In my town, for example, you can see a crime map of recent incident reports for the whole city, by zip code, by neighborhood or by address. You can zoom in and out, and the map is in color and letter-coded with little icons representing different types of crimes: red is for violent, blue is for drug crimes, green is for property crimes; and the most common specific offenses reported get their own two-letter code. Whether you own or rent your home, if you hear a siren and wonder what happened, Google might be a good place to look.

This is also a good strategy for home buyers to leverage. In fact, when new homeowners Robert Quigley and Jennifer Friberg started developing headaches and other strange physical symptoms after moving into their first home, a neighbor dropped the informational bomb that the home's previous resident had been cooking methamphetamine in the home. In a panicky effort to suss out the truth, they Googled their address and - yikes! - found it listed on the Drug Enforcement Administration's database of meth labs! If you're considering buying a home, or moving to a neighborhood with which you are not completely familiar, doing a quick address search on Trulia or Google holds the potential to reveal some disturbing or comforting crime activity information.

#3. To Detect Scammers Trying to Rent or Sell Your House. In one of those if-only-they-would-use-their-powers-for-good-not-evil scenarios, Internet scammers have taken to ripping off home information and putting together fake listings offering other people's homes for rent or, often, lease-to-own. They often list the home on extremely cheap and easy terms, then ask the would-be-buyer or tenant to please wire or send the deposit money overseas, where the faux-seller can get it while they're traveling in -- you guessed it -- Nigeria. (And, BTW, I have friends from Nigeria who even distrust emails they get purporting to be from Nigeria!)

These scams come to light, most often, only after the homeowner or current resident notices all the bargain-hunting wanna-be tenants start peering in the windows and tramping through the backyard, checking the place out. If you are getting an inordinate amount of street or foot traffic to your home, or someone knocks on the door asking if they can see the place, you may want to Google your address. If you find a fraudulent listing, contact us, identify yourself as the home's rightful resident and ask us to take the scam posting down - stat!

# 4. To See What Your Neighbor's Place Sold for and Possibly Lower Your Property Taxes. In real estate, the value of your home is largely driven by what similar, nearby homes have recently sold for ("comparable sales," or "comps" for short). That gives every homeowner a valid reason for wanting to know what the neighbor's place sold for (on top of your purely voyeuristic need to know). If you search your address, Trulia will first surface some sort of image of your home, a map, the basic property details from the public records (see No. 5, below), and recent sales data for your own home before listing out the comps -- homes with similar numbers of bedrooms, bathrooms and square feet as yours, near yours, and what they recently sold for. Googling your address, in this instance, does double duty -- letting you satisfy your cat-killing curiosity to know what your new neighbor paid for their place, and track the value of your own home at the same time!

And as an added bonus, if you see a pattern of homes selling for lower than your home's assessed value, you can use those comps to petition your County to lower your own property taxes!

Three birds, one stone - you get the picture.

#5. To See Your Home's Property Records. It's a story as old as homes -- well, at least as old as websites that display home records and listings. Your home's records online are populated from the public records about your home, which are either so old they don't include the upgrades and additions that have been done over time, or they're just flat out wrong for a number of reasons. My last home, while large, certainly did not have the 25 bedrooms one site listed it as having. On the other hand, it also was not a boarding house, which is what that site listed as the property's County-designated use. If you Google your address, or search for it on Trulia, and find that your home's description is riddled with errors, contact us or your County public record agency to correct them; this is particularly important if you're planning to sell your home anytime soon.

#6. To See Your Home's Google Street Views. When you're selling your home, it's especially critical to see everything that prospective home buyers will see. That means checking out how your home's listing looks on all the online real estate sites (yes, even on Trulia), checking out the flier - even stopping by to check out any staging your broker or agent did if you've already moved out. One thing even most savvy sellers don't check out is the way Google Maps Street Views depicts your home. If you're unfamiliar, Google actually hitches up cameras to cars and sends them up and down public streets worldwide, so that Google Maps users can go from an overhead view of a street via satellite to seeing panoramic pics from the street from curb level with one click.

Trust me, home buyers know this, and do this. They often use Street Views as a shortcut for seeing whether a home's photos are just fuzzy, or whether it's next door to the local hoarder's house. Here's the problem: Sometimes, the street views can be outdated. I did a major remodel on my home a few years ago, and the photo was clearly taken mid-construction: with dumpster in front, unpainted siding and all. If you're about to sell your home, and you notice that the street view is outdated, mention it to your agent, and ask them to make a note of that fact in the listing information.

Was posted on walletpop.com

You can reach me via email at George.Margrave@migonline.com or via telephone at 615-777-4663.

Homes Get Smaller, More Energy Efficient

What features do buyers want today and in the future? The answer: smaller, more energy efficient homes.

The average size of a new single-family home in 2010 was 2,377 square feet, down from 2,438 square feet in 2009 and down from the peak of 2,520 square feet in 2007 and 2008, according to U.S. Census Bureau data presented by Rose Quint, assistant vice president of survey research for NAHB at the International Builders' Show in Orlando Thursday, Jan. 13.

And the trend will only continue, Quint said, with the 2015 new home size currently projected at 2,150 square feet with fewer bathrooms and smaller garages.

It's hard to say whether home sizes will decline to 1970 levels of 1,500 square feet. But Quint says she believes smaller sizes are here to stay based on demographics.

The U.S. population was 310 million as of April 2010. That's expected to rise to 322 million in 2015 and continue to climb up to 422 million by 2050. The population is also getting older and more diverse. In 2010, 25 percent were over the age of 55, which is expected to grow to 31 percent by 3050.

This rising segment of older home owners will not want to care for huge spaces, Quint said. Then you have Generation Y buyers who are very energy conscious. "People are coming to realize, 'Let's buy what we need,'" said Quint.

The Census Bureau data is congruent with NAHB's findings that builders expect to build smaller homes with more green features in the next five years. Low energy windows, water efficient features, engineered wood beams, joints, or trusses, and energy star ratings are expected to be more revenant.

Builders also expect an increase in living room size as well as more planning for universal design features with homes more easily adaptable for future improvements, said Quint.

Jill Waage, executive editor with Better Homes and Gardens, also presented her magazine's 2011 consumer preferences survey, which was taken the first week of December. According to Waage, the top three improvement priorities for home owners are a laundry room, additional storage, and a home office. "The connection to outdoor living space is also really important," Waage said.

Other trends included in the Better Homes and Gardens study: built-ins, media space for flat screen TVs and gaming systems, and areas of the home wired for technology. Buyers also want combined kitchen, family room, and living room open space. Universal design features, she said, will be incorporated in much more subtle ways.

- Erica Christoffer, REALTOR®Magazine

You can reach me at 615-777-4663 or via email at George.Margrave@MIGOnline.com

Grown Children Still at Home?

I heard today that there are more men and women ages 25 to 34 living at home with their parents than at any time since 1981. This number is now 30% of that age group and the number is historically at 28%. So that means that I have a bunch of readers who are affected by this situation. I know it is nice to be with the family, but I also know this can be very awkward. We at MIG can help. Our first time buyer program gives us the ability to get these potential homeowners into a new home or condo in many cases with no cash out of pocket required. And the payment is usually cheaper than renting a comparable place since the interest rates are so low. And if this plan doesn't work, we could put you parents on the loan with the younger person and get them packing their bags. Please call (615-777-4663) or e-mail me for details, email address is george.margrave@migonline.com  

Have You Heard?

You probably haven't heard, but Fannie Mae and Freddie Mac have done it again. The are making it way more expensive for 75% of your clients and mine to buy or refinance with conventional loans. They have taken risk based pricing to new lows. For example if your client has an 800 score and has a higher loan to value than 75% they will pay a quarter point more (that doesn't sound like much by it adds up to a thousand dollars on a $400,000 loan). If they have a 679 score and a 79% LTV it is 2.75 points. I have trouble even counting that high.


These agencies are bleeding red ink with all the foreclosures, but guess what, if you don't have income you will never reverse the losses. And the loans of the last couple of years have to be performing well. The whole idea of risk based pricing is supposed to charge those with the higher risk more and reward those with low risk. It is not supposed to penalize almost everyone. Almost every conventional loan with a loan to value over 70% had the hit go up, some as much as a half point.


At a time when our industries need all the help we can get we get this. It just delayed our recovery some more. It is bound to push some folks into renting instead of buying. I say lets look at FHA every time we can, because these hits combined with the higher PMI rates are not pretty. Let me help you with the best loan type for your client. Also, contact your represenatives. They have said they want to get the government out of mortgage financing, but their actions are pushing us in the wrong direction.


You can reach me at 615-777-4663 or text me at 615-481-5626 or via email at George.Margrave@MIGonline.com

What Is The Rate Today?

People call every day and say “what is the rate”? They just don’t realize what they are asking. Here are a few of the things I need to know before I can quote it.

1. Price or value if a refinance
2. Length of time to lock the rate in
3. Borrowers middle credit score
4. How much down payment (or equity if a refinance)
5. Type of property (such as condo, PUD, Manufactured home, single family or duplex)
6. Term desired
7. Loan type such as VA, FHA, THDA, Rural Housing or conventional.

And this isn’t all. When I have this info, I will probably say let me call you back in a few minutes. Just thought you might want to know why you need to deal with someone you trust.

Give me a call at 615-777-4663 or shoot me an email at George.Margrave@migonline.com if I can be of any help or if you have questions.