If you read the news, the inventory of homes is a little low. That means sellers can be picky when they receive a contract offer. If you present an offer with our letter and another buyer makes an offer without being qualified (all other things equal or maybe not so equal), guess who gets the home?
Yes it is a little trouble, but we don't charge you to take care of this and you can avoid embarrassing surprises. To do this go to www.mignashville.com/app and fill out our online application. It is easy and secure and will get you on the road to that home!
Friday, May 3, 2013
Wednesday, May 1, 2013
In Case you wondered about square footage!
QUESTION: I have a seller that is disputing the manner in which I measured the square footage of their property. What is the correct/legal way to do this?
ANSWER: We do not recommend that agents calculate square footage. Square footage (or gross living area) is difficult to determine and is ripe for a misrepresentation claim.
There are several acceptable ways in which to determine square footage. Additionally, if you have 3 different people determine square footage, you are likely to get three different answers. If the square footage included in the MLS is incorrect, the REALTOR could be liable for negligent misrepresentation depending upon what he or she did to verify the information obtained and when the discrepancy is discovered (i.e. before contract entered into, after closing).
We recommend that square footage be listed as an "approximate" amount and that a disclaimer be included noting that the amount of square footage is not guaranteed. We would also recommend either listing the square footage as what is listed on the tax records or as calculated by an appraiser and indicate the source. The important thing is that the information concerning square footage is disclosed so as to avoid misrepresentation. We would recommend going with either the tax records or from an appraiser's measurements.
[SOURCE: TAR's Legal & Ethics Hot Line Attorneys]
ANSWER: We do not recommend that agents calculate square footage. Square footage (or gross living area) is difficult to determine and is ripe for a misrepresentation claim.
There are several acceptable ways in which to determine square footage. Additionally, if you have 3 different people determine square footage, you are likely to get three different answers. If the square footage included in the MLS is incorrect, the REALTOR could be liable for negligent misrepresentation depending upon what he or she did to verify the information obtained and when the discrepancy is discovered (i.e. before contract entered into, after closing).
We recommend that square footage be listed as an "approximate" amount and that a disclaimer be included noting that the amount of square footage is not guaranteed. We would also recommend either listing the square footage as what is listed on the tax records or as calculated by an appraiser and indicate the source. The important thing is that the information concerning square footage is disclosed so as to avoid misrepresentation. We would recommend going with either the tax records or from an appraiser's measurements.
[SOURCE: TAR's Legal & Ethics Hot Line Attorneys]
Monday, April 22, 2013
Be a Self-Starter
by David H. Sandler
• A race car has a tremendous amount of potential energy but cannot start until someone waves the green flag.
• The powerful engines of a jet cannot lift that plane one-inch off the ground without ample runway and someone activating its controls.
• A locomotive can be held in place by a single block of wood placed under its wheel, yet under power it can go through a brick wall 10 feet thick.
Raw power has only potential. Machines cannot turn themselves on - people can! If you're going to wait to feel "right" about doing something, it may never happen. The self-starter knows that there is never a "right" time to get started.
Too many people sit around waiting to be motivated - as if there were some chemical reaction about to take place. The self-starter acts on his goals, and the motivation to achieve those goals is built into that action.
If you are not feeling "up to it," no amount of concentration, wishful thinking, or smoke screen planning will get you into action. Things in motion tend to stay in motion; things at rest remain at rest. The more you think about becoming motivated, the better the chances are that you won't.
The self-starter knows that regardless of how he feels at any given moment, how he will feel in the next moment is determined by the action he takes.
If you have set worthwhile goals, and have developed a plan of action, set your plan into action anytime of the day or night by acting on it. Don't lose precious time by waiting for the time to be right: Become a self-starter.
It's how you act that determines how you feel, not how you feel that determines how you act.
* * *
Excerpted from Sandler's No Guts, No Gain!® training program. © 2002 Sandler Systems, Inc. All rights reserved.
• A race car has a tremendous amount of potential energy but cannot start until someone waves the green flag.
• The powerful engines of a jet cannot lift that plane one-inch off the ground without ample runway and someone activating its controls.
• A locomotive can be held in place by a single block of wood placed under its wheel, yet under power it can go through a brick wall 10 feet thick.
Raw power has only potential. Machines cannot turn themselves on - people can! If you're going to wait to feel "right" about doing something, it may never happen. The self-starter knows that there is never a "right" time to get started.
Too many people sit around waiting to be motivated - as if there were some chemical reaction about to take place. The self-starter acts on his goals, and the motivation to achieve those goals is built into that action.
If you are not feeling "up to it," no amount of concentration, wishful thinking, or smoke screen planning will get you into action. Things in motion tend to stay in motion; things at rest remain at rest. The more you think about becoming motivated, the better the chances are that you won't.
The self-starter knows that regardless of how he feels at any given moment, how he will feel in the next moment is determined by the action he takes.
If you have set worthwhile goals, and have developed a plan of action, set your plan into action anytime of the day or night by acting on it. Don't lose precious time by waiting for the time to be right: Become a self-starter.
It's how you act that determines how you feel, not how you feel that determines how you act.
* * *
Excerpted from Sandler's No Guts, No Gain!® training program. © 2002 Sandler Systems, Inc. All rights reserved.
Friday, April 12, 2013
No Credit Scores? We can still do it!
Do you know someone that has absolutely no credit? Someone who followed a famous radio host to the no score credit report? Then they try to buy a home and find it to be a big problem. In many cases we can help those folks. We will verify rent, utilities etc. and then get it done. So if you or someone you know has this situation, please let me know. Give me a call at (615) 777-3299. Ask for George!
Friday, April 5, 2013
U.S. Governments April Fool's Joke
By the time you read this, the U.S. Governments April Fool's joke will have taken effect. That is the increase of the FHA MIP. But never fear, they have the next thing all set to take effect in early June. At that time a loan case number pulled after June 3 will carry with it the privilege of paying the MIP for the life of the loan. Presently if you reach the point of 78% of the appraised value or purchase price (whichever is less) the MIP Will drop off. (with a minimum of 5 years). So if you are in the market for a home , and need to use an FHA loan, it would behoove you to go ahead and get it done. Call or email me for details on how to avoid FHA.
Thursday, March 28, 2013
Zillow: Home Values To Grow 22 Percent Through 2017
by Broderick Perkins
Home values will grow incrementally by more than 4 percent a year and cumulatively by 22 percent over the next five years.
That's if growth rates exceed home value growth rates in the 12 years preceding the onset of the housing bubble that culminated in the Great Recession.
It sounds like happy days are here again in the residential real estate market, according to the Zillow Home Price Expectations Survey (ZHPES).
Zillow's panel of more than 100 professional forecasters foresee the 4.1 percent next-five-year annual home value appreciation rate exceeding the pre-housing bubble's (1987-1999) average annual appreciation rate of 3.6 percent.
The finding is the first time the predicted average annual growth rate for the next five years has surpassed pre-bubble levels since the survey's inception by Zillow three years ago.
But don't party like it's 1999 just yet.
"That said, their expectations are a bit shy of the home value gains of 5.5 percent that we saw in 2012, implying some moderation in the pace of gains. The panel expectations are consistent with continued strong home value growth this year fueled by tighter-than-normal inventory of for-sale homes and robust demand attributable to high affordability and a stronger general economy," said Zillow Chief Economist Dr. Stan Humphries.
Bring more homes to market from sellers and banks' "shadow inventory," raise mortgage interest rates, push home values too high, trip up the economy and all bets are off.
Anything can happen
It's true. A cascade of study after study points to real recovery, but anemic economic growth, creeping employment and salary gains and still tight mortgage lending could put a crimp in any forecast.
Year-by-year, Zillow says expect to see home values rise 4.6 percent this year, 4.2 percent in 2014 and then level off between 3.6 percent and 3.8 percent from 2015 to 2017.
For the five-year period, expectations for home value increases ranged from a whopping 34.2 percent, among the most optimistic quartile, to only 11.7 percent among the most pessimistic, Zillow reports.
Even at the average annual home value rate growth forecast by the most pessimistic of Zillow's forecasters, about 2.4 percent, the growth rate would not be far below the pre-bubble average of 3.6 percent.
Among single forecasters, the smallest cumulative (through the end of 2017) home value forecast was for an 11 percent depreciation.
The greatest cumulative forecast for the five-year period was for a home price appreciation rate of nearly 78 percent.
Home values will grow incrementally by more than 4 percent a year and cumulatively by 22 percent over the next five years.
That's if growth rates exceed home value growth rates in the 12 years preceding the onset of the housing bubble that culminated in the Great Recession.
It sounds like happy days are here again in the residential real estate market, according to the Zillow Home Price Expectations Survey (ZHPES).
Zillow's panel of more than 100 professional forecasters foresee the 4.1 percent next-five-year annual home value appreciation rate exceeding the pre-housing bubble's (1987-1999) average annual appreciation rate of 3.6 percent.
The finding is the first time the predicted average annual growth rate for the next five years has surpassed pre-bubble levels since the survey's inception by Zillow three years ago.
But don't party like it's 1999 just yet.
"That said, their expectations are a bit shy of the home value gains of 5.5 percent that we saw in 2012, implying some moderation in the pace of gains. The panel expectations are consistent with continued strong home value growth this year fueled by tighter-than-normal inventory of for-sale homes and robust demand attributable to high affordability and a stronger general economy," said Zillow Chief Economist Dr. Stan Humphries.
Bring more homes to market from sellers and banks' "shadow inventory," raise mortgage interest rates, push home values too high, trip up the economy and all bets are off.
Anything can happen
It's true. A cascade of study after study points to real recovery, but anemic economic growth, creeping employment and salary gains and still tight mortgage lending could put a crimp in any forecast.
Year-by-year, Zillow says expect to see home values rise 4.6 percent this year, 4.2 percent in 2014 and then level off between 3.6 percent and 3.8 percent from 2015 to 2017.
For the five-year period, expectations for home value increases ranged from a whopping 34.2 percent, among the most optimistic quartile, to only 11.7 percent among the most pessimistic, Zillow reports.
Even at the average annual home value rate growth forecast by the most pessimistic of Zillow's forecasters, about 2.4 percent, the growth rate would not be far below the pre-bubble average of 3.6 percent.
Among single forecasters, the smallest cumulative (through the end of 2017) home value forecast was for an 11 percent depreciation.
The greatest cumulative forecast for the five-year period was for a home price appreciation rate of nearly 78 percent.
Wednesday, February 27, 2013
Mortgage Investors Group Grabs THDA Top Lender Spot 10th Year in a Row!
From the THDA Newsletter:
NASHVILLE, February 15, 2013 - For the tenth consecutive year, Knoxville-based Mortgage Investors Group is the top originator of Tennessee Housing Development Agency's first-time homebuyer loans.
"It's dedicated partners like MIG who work to introduce the THDA program to buyers," said Ralph Perrey, THDA executive director. "We appreciate how hard they work to research the best program for each consumer."
Established in 1989, Mortgage Investors Group (MIG) has been a key a partner in Tennessee Housing Development Agency's (THDA) goal of providing all Tennesseans with access to safe, sound, affordable housing opportunities. Over the last 10 years, MIG submitted 4,579 applications for a value of $ 446,560,896. The next most-active THDA lender secured 2,283 applications over that same timeframe.
A total of 2,102 loan applications from households of low- to moderate-income were originated by lenders across Tennessee for the 2012 calendar year. MIG's staff submitted 333 applications in 2012 for a total value of $33,429,536. The second most-active lender for 2012 was First Community Mortgage with 195 applications and $23,482,920 in value.
"We are thrilled to be THDA's Top Lender for a record 10th straight year," said Jesse A. Lehn, Executive Vice President, MIG. "Our relationship has grown stronger with each year and will continue into the future. MIG's core focus is putting homebuyers into the right program and there is no better program for first-time homebuyers than THDA."
THDA is a political subdivision of the State of Tennessee, established in 1973. THDA is the State's housing finance agency, responsible for selling tax exempt mortgage revenue bonds to offer affordable mortgage funds to homebuyers of low and moderate incomes through local lenders, and to administer various housing programs targeted to households of very low-, low- and moderate-incomes.
THDA made its first mortgage in 1974. It has provided affordable fixed rate mortgages to over 107,000 households without using state tax dollars. The total contribution of the THDA-related activities to Tennessee's economy in 2011 is estimated at $728.6 million.
THDA issues between $250 and $300 million in mortgage revenue bonds annually for its first-time homebuyer program.
THDA created the Tennessee Housing Trust Fund in 2006, using state, THDA and locally-generated match to support programs for households of very-low income, elderly and special needs populations.
More information about THDA is available on-line at http://www.thda.org
NASHVILLE, February 15, 2013 - For the tenth consecutive year, Knoxville-based Mortgage Investors Group is the top originator of Tennessee Housing Development Agency's first-time homebuyer loans.
"It's dedicated partners like MIG who work to introduce the THDA program to buyers," said Ralph Perrey, THDA executive director. "We appreciate how hard they work to research the best program for each consumer."
Established in 1989, Mortgage Investors Group (MIG) has been a key a partner in Tennessee Housing Development Agency's (THDA) goal of providing all Tennesseans with access to safe, sound, affordable housing opportunities. Over the last 10 years, MIG submitted 4,579 applications for a value of $ 446,560,896. The next most-active THDA lender secured 2,283 applications over that same timeframe.
A total of 2,102 loan applications from households of low- to moderate-income were originated by lenders across Tennessee for the 2012 calendar year. MIG's staff submitted 333 applications in 2012 for a total value of $33,429,536. The second most-active lender for 2012 was First Community Mortgage with 195 applications and $23,482,920 in value.
"We are thrilled to be THDA's Top Lender for a record 10th straight year," said Jesse A. Lehn, Executive Vice President, MIG. "Our relationship has grown stronger with each year and will continue into the future. MIG's core focus is putting homebuyers into the right program and there is no better program for first-time homebuyers than THDA."
THDA is a political subdivision of the State of Tennessee, established in 1973. THDA is the State's housing finance agency, responsible for selling tax exempt mortgage revenue bonds to offer affordable mortgage funds to homebuyers of low and moderate incomes through local lenders, and to administer various housing programs targeted to households of very low-, low- and moderate-incomes.
THDA made its first mortgage in 1974. It has provided affordable fixed rate mortgages to over 107,000 households without using state tax dollars. The total contribution of the THDA-related activities to Tennessee's economy in 2011 is estimated at $728.6 million.
THDA issues between $250 and $300 million in mortgage revenue bonds annually for its first-time homebuyer program.
THDA created the Tennessee Housing Trust Fund in 2006, using state, THDA and locally-generated match to support programs for households of very-low income, elderly and special needs populations.
More information about THDA is available on-line at http://www.thda.org
Wednesday, February 20, 2013
FHA MIP
I mentioned a couple of weeks ago that FHA is raising the mortgage insurance April 1 by 10 basis points. That doesn't sound like much, but it adds up. It is their April Fool's Joke. At the present in most cases when you get 22% equity based on your purchase price it drops off your payment. On June 3 all the new loans will see the MIP become permanent for the life of the loan. So If you can move your time table forward a little, it could save you a lot of money. Call me at (615) 777-4663 to help you with this.
Friday, February 15, 2013
Condo Approvals
I have written about this before, but it continues to rear its ugly head. Many Condominium associations have let their FHA and/or Fannie Mae approvals expire. Basically if both happen there is an extremely good possibility that a unit owner may not be able to sell or refinance with favorable financing and be relegated to non-conforming interest rates. They apparently do not realize that this can and probably will hurt their property values and limit their options down the road.
Monday, February 4, 2013
"Normal" Housing Market may not be what it used to be!
I was reading today that Fannie Mae has looked into their crystal ball. They note that we have the following positive trends:
• Washington seems to be slowly getting their act together. (That is writing fewer checks)
• The Fed is likely to continue to support the economy.
• They expect mortgage rates to remain relatively low over the next few years "rising to no more than 4.2% by the end of 2014.
• They expect growth of about 2% per year.
• Foreclosures are declining.
• Housing starts should rise 23% in 2013
All this doesn't spell boom time, but in my opinion it is a positive environment to buy a home. Call us if we can help at (615) 777-4663.
Thursday, January 24, 2013
CREDIT ALERT!!
If you are a parent of a college student or for that matter a child over 18 living at home, listen up.
Unless you want them to become a renter or to live with you for the foreseeable future, you need to help them build a credit history. I can't tell you how many times the graduate comes in and has no credit. We investigate further and they don't have a rent history. Then we find out the cell phone they are so proud of is in Dads name and his car loan and insurance is too. And so on. You get the picture. No credit and no alternative credit (like insurance, cell phones, utilities etc.).
So ideally, you would help them get a secured credit card (actually two) and an installment loan even if it is secured by savings. They will want a 12 month perfect history on these accounts. In the meantime get some of the above mentioned alternative accts in their name and push them to pay on time. Next week we will address what to do with these accounts when you get them.
Unless you want them to become a renter or to live with you for the foreseeable future, you need to help them build a credit history. I can't tell you how many times the graduate comes in and has no credit. We investigate further and they don't have a rent history. Then we find out the cell phone they are so proud of is in Dads name and his car loan and insurance is too. And so on. You get the picture. No credit and no alternative credit (like insurance, cell phones, utilities etc.).
So ideally, you would help them get a secured credit card (actually two) and an installment loan even if it is secured by savings. They will want a 12 month perfect history on these accounts. In the meantime get some of the above mentioned alternative accts in their name and push them to pay on time. Next week we will address what to do with these accounts when you get them.
Wednesday, January 16, 2013
Good News for Veterans!
Today's news includes an announcement by Wal-Mart that they are pledging to hire 100,000 Veterans with honorable discharges over the next 5 years. I think this is great. I am not really a Wal-Mart fan, but this could make me one. I have seen some numbers that if a veteran who works for Wal-Mart has a spouse who has an average job, that they could qualify for the average home in the U.S. which is $186,000. So selfishly that could be a boost to the housing industry.
And since we at MIG also specialize in VA loans we can participate too. This is a good time to point out that THDA (the first time buyer agency in Tennessee) is offering Vets (and they don't have to be first time buyers) one half per cent off on their mortgage. That would put their starting rate at 3.1%. This is their Homeownership for the Brave program.
So if you know a Vet we can help please email me at george.margrave@migonline.com or call me at (615) 777-3299 and I will help them!
And since we at MIG also specialize in VA loans we can participate too. This is a good time to point out that THDA (the first time buyer agency in Tennessee) is offering Vets (and they don't have to be first time buyers) one half per cent off on their mortgage. That would put their starting rate at 3.1%. This is their Homeownership for the Brave program.
So if you know a Vet we can help please email me at george.margrave@migonline.com or call me at (615) 777-3299 and I will help them!
Wednesday, January 9, 2013
MIG & Team Margrave 2013
We have been getting geared up for 2013. MIG had a record year in 2012 closing about $1.17 Billion in loans. Yes, MIG is the largest independent lender in the State. My teams volume was the second best year we ever had thanks to my loyal clients.
This would be a good time to let you know who my team is. Stephanie Holland is my right arm. My second assistant and Stephanie’s right arm is David Baker. We also have Kim Shumate and Jennifer Hegele as our processors.
Our Manager Darin Anderson gives us great support and we also have two underwriters and Nita our closer right here in the office. So we are all set to handle your referrals!
This would be a good time to let you know who my team is. Stephanie Holland is my right arm. My second assistant and Stephanie’s right arm is David Baker. We also have Kim Shumate and Jennifer Hegele as our processors.
Our Manager Darin Anderson gives us great support and we also have two underwriters and Nita our closer right here in the office. So we are all set to handle your referrals!
Wednesday, January 2, 2013
Is Home Buying a Safe 2013 Investment?
No one knows the future, but it appears to even the most negative advisers that housing has bottomed and is headed toward better days. The last statistics show that homes are now appreciating. Of course Real Estate is local, but we see that here also. The bottom line is that housing markets depend on Jobs and other economic factors.
If you compare buying with renting, buying is winning out in almost every calculation now. It is hard to beat low prices with low interest rates.
And guess what?
We can help you make that purchase. Just email me at George.Margrave@migonline.com or call (615) 777-4663!
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