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.