Cheaper than rent

Are YOU a First Time Home Buyer? We can HELP!

2012-02-08T16:27:00.000-06:00

I want to mention our expertise with First Time Home Buyers. My team accounted for the most THDA loans in the state for 2010. This fiscal year which is almost half done finds us in the lead again. I just want to point out that these loans are not always the easiest, but I think we are serving our community by working on them so diligently.

You may not realize it but in most cases we can structure it so that these buyers do not have to have money to make the purchase. (this is in spite of what you read in the media that 20% is required)The interest rates are great and as a result of this, our borrower often owns a home for less than the rent they were paying.

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

Housing Trends, First Time Homebuyers

2012-02-01T14:46:00.000-06:00

Happy New Year, friends! We start 2012 with a look at first time home buyers. Where would they like to live? The results are in and it's no surprise that 78% said "near shops and services." The top 7 are listed here:

1. Shops and services (78%)

2. Their job (75%)

3. In a very good school district (66%)

4. Parks and other open spaces (61%)

5. Family and/or relatives (61%)

6. Restaurants, nightlife and other activities (51%)

7. Easy access to public transportation (45%)

Take a look at this infograph for more interesting information. Click here for an enlarged version.

~~From Tennessee Title

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

Call on Us First

2012-01-25T16:00:00.000-06:00

Over and over I receive calls from my clients and they start out with I talked to my bank and 1. They won’t return my calls or 2. They say they can’t close for 60 days or 3. They don’t do the kind of loan I want and so on and so on. I guess people call their bank because they think they will give them a better deal.

I can safely say that in most cases we can close much quicker, with a better rate and we do return our calls. In fact when you call us, a human answers and you don’t go into voice mail Hades.

I’m just saying. Call us first and save yourself some aggravation. You can reach us at 615-777-4663 or via email at George.Margrave@migonline.com

Home Sales Show Increase

2012-01-12T08:42:00.000-06:00

Sales in Middle Tennessee grew by more than 20 per cent over 2010. There were 1502 single-family homes sold which is a gain of 21.4%. It was the 6th consecutive month that home sales topped their year-ago levels. People who haven't had confidence are now starting to move forward.

According to the Greater Nashville Association of Realtors single-family homes purchases for the entire year grew 1.5% over 2010 to reach 17,192 properties. It was the first time since 2006 that annual home sales rose for the year.

Williamson County saw an 8.4% increase. Median prices in both counties were slightly lower. The median price for the year was around $167,000 down about 1 per cent. Pending sales were up 23% which is a great sign of future growth

If you have been waiting on the economy, it may be time to get moving. Call George at 615-777-4663.

What's the real cost of the payroll tax cut?

2012-01-04T16:03:00.000-06:00

When you heard that our Federal Government had extended the tax cut and long term unemployment benefits for two months, you were probably glad. If you read on, you discovered that the two months were financed on the back of the Real Estate industry. (For 10 years!) Details are still sketchy, but from what I understand every FHA, Fannie Mae or Freddy Mac loan closed for 10 years will have a 10 basis point surcharge. (That is almost the equivalent of .125% increase in the rate of probably about 90 percent of the loans that will close in that period.) Now I ask you which industry does our country desperately need to turn around? That is right, the real estate industry! So why not raise their cost?

I am honestly wondering if anyone in either party has a clue what they are doing up there.

I'm just saying----.
You can reach me at 615-777-4663 (HOME) or email me at George.Margrave@migonline.com .

Protecting Your Identity

2011-12-28T10:41:00.000-06:00

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!

2011-12-21T14:04:00.000-06:00

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

2011-12-14T10:37:00.000-06:00

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

2011-12-07T12:02:00.001-06:00

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

2011-11-30T15:49:00.001-06:00

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

2011-11-23T10:53:00.001-06:00

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?

2011-11-17T09:08:00.001-06:00

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?

2011-11-09T16:29:00.000-06:00

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?

2011-11-02T13:10:00.000-05:00

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

2011-10-26T16:30:00.000-05:00

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?

2011-10-19T08:00:00.000-05:00

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

2011-10-11T15:00:00.003-05:00

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

2011-09-28T15:54:00.000-05:00

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?

2011-09-20T11:01:00.000-05:00

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?

2011-09-16T15:05:00.001-05:00

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)

2011-09-07T14:51:00.000-05:00

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

2011-08-31T15:00:00.002-05:00

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

2011-08-24T08:00:00.001-05:00

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

2011-08-17T16:40:00.000-05:00

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

2011-08-10T16:49:00.000-05:00

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

2011-07-27T15:37:00.000-05:00

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....

2011-07-20T11:05:00.001-05:00

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

2011-07-13T16:07:00.000-05:00

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

2011-07-06T11:43:00.001-05:00

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?

2011-06-29T11:23:00.000-05:00

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?

2011-06-22T12:32:00.001-05:00

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

2011-06-15T14:47:00.004-05:00

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

2011-06-08T09:30:00.000-05:00

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

2011-06-01T09:26:00.001-05:00

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

2011-05-24T10:26:00.000-05:00

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

2011-05-18T08:00:00.001-05:00

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

2011-05-11T15:59:00.000-05:00

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

2011-04-29T13:49:00.000-05:00

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)

2011-04-27T16:15:00.000-05:00

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!

2011-04-13T14:55:00.000-05:00

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

2011-04-06T17:26:00.000-05:00

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

2011-03-30T16:03:00.000-05:00

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

2011-03-23T16:25:00.000-05:00

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

2011-03-16T10:33:00.000-05:00

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!

2011-03-09T15:56:00.000-06:00

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

2011-03-02T15:07:00.000-06:00

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?)

2011-02-23T15:27:00.000-06:00

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?

2011-02-16T15:40:00.000-06:00

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?

2011-02-09T15:59:00.000-06:00

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

2011-02-02T11:34:00.000-06:00

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

2011-01-26T14:03:00.000-06:00

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?

2011-01-20T12:32:00.000-06:00

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?

2011-01-14T16:26:00.000-06:00

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

2011-01-12T10:07:00.001-06:00

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.

Is Now the Time to Sell?

2011-01-05T11:33:00.000-06:00

Is now the time to sell? I am going to mention mostly financial angles to consider when making this decision. And certainly, these are not the only considerations.

Many of you may have put off a move that you wanted to make. One reason may be that you have no equity in your home or may even be upside down. In that case you might not have a choice. However, if you have some money set aside, you may be able to pull it off.

That means you will have to put some money into the transaction to get to the closing table. We’re seeing this in many cases and are even refinancing some homes where borrowers are having to put some money into the deal to get a great interest rate. A short sale can be considered, but in most cases that means you will not be able to buy again for several years.

Again you have to consider the cash required to buy the new house. You will probably be able to move to the next house at a great price and at a great interest rate. If you are a Veteran or buy in a rural area you may be able to buy with no cash. If you don’t fit one of those categories you may want to go FHA which is 3.5% down. The cost on any of these can be paid by the seller or by the lender. (Ask me how)

If you would like to take a look at some numbers for yourself, give me a call at 615-777-4663 and we can take a look at it for you.

2010-12-23T09:41:00.000-06:00

"All good things must come to an end..." or so the popular saying goes. And right now many people are wondering if this sentiment holds true for the historic low rates we've seen this year. Here's what last week's news suggests: First, it's important to understand that home loan rates are based on Mortgage Backed Securities, which is a type of Bond. Bonds typically help provide some built in "assistance" when the nation is suffering economic headwinds. For example, negative economic news serves to help Bond prices improve and rates decline, including home loan rates. This is helpful to have when the economy is struggling, as buyers of all products - including homes - need the extra incentive of low rates to be encouraged to buy.

But now, the sharply higher expectations for future economic growth has caused rates to climb - particularly including home loan rates, since the Fed announced its second round of "Quantitative Easing" or QE2 on November 3rd. With QE2, the Fed will purchase $600 Billion in Treasury Securities through mid-2011 to keep our economic recovery on track.

But is there any likelihood rates can rebound? Many experts expect that home loan rates will continue to move higher over time because:

At its meeting last week, the Fed left the door open for further QE programs if our economic recovery requires which, like QE2, could hurt Bonds and home loan rates.
Congress passed the $858 Billion Tax Cut Bill, and while this is a good economic stimulus, in the short run it adds to the ever-growing deficit - also bad for Bonds and home loan rates.
Last week's Producer Price Index and Consumer Price Index Reports showed that the Fed appears to be on tract with their goal of stimulating a bit more inflation. Inflation erodes the value of the fixed return provided by a Bond, which causes home loan rates to rise.

It's important to understand that rates don't simply rise in a straight line. In fact, Bonds and home loan rates did have a late-week, and that trend of rates worsening with improving dips here and there like we saw last week may be what's in store for us in the weeks and months ahead. At the end of the day, the ongoing and potential addition of further stimulus from the Fed, combined with the stimulus from the tax cuts, will make it tough for Bonds and home loan rates to return to the levels seen earlier this year.

But the good news is that home loan rates are still extremely attractive right now. If you have been thinking about purchasing or refinancing a home, call or email me now to get started. Or forward this blog on to someone you know who may benefit from today's historically low rates.

From Mortgage Market Guide

2010-12-16T15:46:00.000-06:00

You may think the following is a strange topic for the Real Estate Corner, but Student loans are a huge obstacle to people wanting to buy a home. Here are some tips.

Student Loans: How Much to Borrow?
by Farnoosh Torabi on 12/06/2010

My recent post on student loan bankruptcy continues to evoke comments from numerous borrowers fighting to make ends meet. Sophia Vackimes writes in that her $250,000 student loan is proving difficult to manage in a stagnant job market, even with her Ph.D. Another reader, Mike, responds that he has more than $80,000 in debt, while earning $30,000 a year.

Those loan figures are above average, but not uncommon in a time where college costs have practically tripled since the 1980s (inflation-adjusted). According to a new report by Pew Research, students who graduated with a bachelor's degree in 2008 borrowed roughly $15,000 (adjusted for inflation), which is a far cry from the numbers above, but still 50 percent more money than what graduating students borrowed in 1996.

What lender in its right mind gives a teenager (figuring you're 18 or 19 when you assume student loans) up to hundreds of thousands of dollars in student loans? And what borrower in his or her right mind accepts?

While we can't exactly control lenders' decisions, we can control what we, as borrowers take on. Just like you wouldn't (or shouldn't) accept a $500,000 mortgage if you're only making $50,000 a year (though banks granted those types of mortgages a few years ago), students should not take on more than they can feasibly carry. The average graduating salary offer for a bachelor's degree student is $47,673, according to NACE's Salary Survey.

For aspiring college students weighing their financing options, consider the following ballpark math for a manageable amount of student loan debt. Consider federal loans first, private loans never.

1. Consider your first year salary. Figure you'll make the average $47,673 the first year you graduate. That's close to $36,000 after taxes, assuming a 25% tax bracket.

2. Consider your budget. If your student loans were to make up 5% to 10% of your monthly budget, which is reasonable, considering you will have rent, car payments, some credit card debt, food and utilities, among other expenses, then you want a loan that requires a payment of no more than $360 a month - maximum. At the federal lending rate of 6.8% and a repayment term of 10 years, that's approximately $60,000 in student loans, which still even sounds a bit high to me. Yes, you will boost your earnings potential and can afford to pay more years down the line, but best to stay conservative here, since, again the banks certainly won't be. And not to be cynical, but who knows if you'll be able to get a job right away? It may take several months to land a job, as many current college graduates will tell you.

Bottom line: There are many ways to obtain an education in this country. Drowning in debt should not be one of them. Financial institutions won't likely tell you this. It's tough to accept the advice, since we all want to go to the best schools and get the best educations and that all comes at a price - far more than $60,000 - but like anything else in this world, if you can't afford it, figure out other ways to make it happen. In the financial world you often need to step in and be your own financial advocate. After all, no one cares more about your money than you.

my email address is george.margrave@migonline.com

What better gift could you give yourself than a new home?

2010-12-02T09:35:00.000-06:00

What better gift could you give yourself than a new home? It may be one of the best times ever for that purchase. The rates are still really really great. You can probably find a home for 25-50% less than you could have 5 years ago.

The prices around the country seem to still be declining a little, but according to the local Realtors Association they have stabilized in middle Tennessee. In fact the median price is increasing.

Call me at 615-777-4663 and let's discuss your possibilities.

July 2, 2010

2010-07-02T16:28:00.000-05:00

The Congress has passed the following:

Tax credit processing extension Updates

The Congress has passed H.R. 5623, the Homebuyer Assistance and Improvement Act, which extends the tax credit closing deadline until September 30th. There will also be no gap between June 30th and the date the President signs the bill into law. The extension only applies to transactions in which the purchase contract was signed by April 30th.

·Flood insurance extension

The Senate has passed H.R. 5569 which extends the National Flood Insurance Program until September 30, 2010. The bill is retroactive from June 1, 2010 to the date the President also signs this bill.

USDA

There is still no decision on the USDA extension. Since the Senate adjoined until July 12th, the House must decide whether to accept the supplemental appropriations bill passed by the Senate or it will be necessary to delay final action on the USDA extension until after the July 4th recess.

Potomac Partners

Friday 25,2010

2010-06-28T08:34:00.000-05:00

It has always been important for our borrowers to make sure that their financial situation does not change while we process their loan. With new rules from Fannie Mae it is even more important. Now we have to make even more of an effort to insure this (even possibly a new credit report just before closing). The problems associated with new debt or possibly lower credit scores are too numerous to spell out here. Of course the worst thing that could happen is that suddenly the loan could not be negated. Talk about disruptions. Especially if there is more than one closing hanging in the balance. So I am asking everyone in the process to push for the result we all desire. An uneventful closing.

Friday, June 11, 2010

2010-06-11T15:30:00.000-05:00

You know, I just received the latest stats on the mortgage licensing situation. Seventy one per cent of the people are now passing the National test. I don’t know about the state test but I thought it was harder. That means that there are going to be fewer competitors’ for me come July 30th. That is unless the banks hire all the people that fail. They can do that you know. Obviously I recommend that you deal with a licensed person who has done the training and has the scores to prove it. My license number is 185895. The web site is http://mortgage.nationwidelicensingsystem.org/ Check out the site and look me up.
On another note congress still has not funded the Rural housing program and the Flood insurance program. You might want to let them know what you think about that. Although the market is better, we don’t need these kinds of impediments.

2010-06-02T16:27:00.001-05:00

As I write this I am in disbelief. I just cannot understand why congress has let the flood program expire again and has still not funded the Rural housing program. I encourage everyone to email their Senators and representatives. Their web sites will give you contact info.
Also Fannie Mae has imposed rules which will require Lenders to re pull credit before funding loans. So a lower credit score or increased debts can kill a transaction at the last minute. So all involved have to make sure our clients know the consequences of more debt or missed payments.
And lastly (this one is more positive), THDA has lowered interest rates. The Great Rate loan is 4.6% and the Great Start is 5.2% (this one provides a 4% grant). If you are not familiar with these call me at 777-HOME (4663) and I will show you how you can increase your sales.

FHA's 203H plan

2010-06-01T15:04:00.001-05:00

We have recently received noticed that First Time Homebuyers whose rental residence was damaged by flood waters (restrictions apply) may now possibly buy a home through FHA's 203H plan. It would be combined with a THDA loan and the benefit to the buyer would be a 100% loan at a great interest rate. Today that would be 4.75%

Also I want to remind you that Veterans have until April 30, 2011 to qualify for the tax credit. So it isn't entirely gone.

Also Veterans can get a THDA loan without being a First Time Homebuyer (they would not get the tax credit though). The first time buyer requirement is currently waived by THDA.

2010-04-07T16:49:00.001-05:00

I read in a recent Mortgage Bankers article that the U.S. lost 1.2 million households during this recession. In a brief analysis, we find the following

1. The likelihoods that a young adult will form an independent household falls by up to 4 % during a recession

2. The home ownership rate dropped from approximately 69% to 67%.

3. The recession caused a dramatic increase in the rate of overcrowding.

4. Children whose parents have a higher income are more likely to remain at home.

5. Household formation will only pick up once the job market stabilizes.

When I think about this, I conclude that the most important item is the need for a fuller employment. March started improving this situation and as we move toward full employment the people crowded into these homes will rapidly start to begin new households. Then the housing crisis will be over. Hopefully sooner rather than later.

With the bargain prices we have now, plus low interest rates, the time is right.
In fact we just received notice that THDA has reduced their interest rate to 4.75% . This is now better then the FHA rate.

And there is only 23 more days to get under contract and get a Federal Tax Credit!

The Pendulum

2010-03-31T11:20:00.000-05:00

Last weekend there may have been a very quiet turning point in the Real Estate and Mortgage situation. I have always said that there is a pendulum that swings both ways. For a while the rules relax until it goes too far. We have seen the latest results of that. Then it goes back the other way. The rules just tighten and tighten. Maybe we got close to the end of that last week. That is when we saw a little relaxing of the PMI rules for loan approval of high LTV loans. We can hope any way.

There is 30 days left before you have to have a contract accepted if you want to qualify for the tax credits. No pressure!

2010-03-24T16:37:00.000-05:00

I am going to keep talking about the tax credits for the next 37 days. That is how long you or one of your friends or relatives has to get a home under contract. It is not just a first time buyer thing ( don't forget a first time buyer is someone who has not owned a principal residence in the last three years). There is also the $6500 credit for the move up buyer. And this person does not have to sell the existing home. I the case of the first time buyer, we can get the buyer in the home for zero cash and then he or she will get the tax credit back in cash to put in savings or to do whatever with. I recommend savings until they get use to owning a home.

This is a link that will answer a lot of questions. Let me know if I can help.

http://www.federalhousingtaxcredit.com/

2010-03-17T15:55:00.001-05:00

I ranted on the new licensing system last week, but today I can point out some positives. Actually I believe I and my company were innocent of most of the sub-prime problems that our nation is enduring. We have traditionally recommended and closed conforming conventional loans and government loans for years. Not to say that we never closed a sub-prime loan. We did a few but I can safely say my clients knew what they were getting. Since we have passed the test I learned that the consumer will be able to look up mortgage originators and see if they have complaints against them. The database is just starting, but it will be good when the data rolls in. At least it is good for those with a clean bill of health. I have been advertising my license number on the videos. Turns out that is the state not federal number. But you can look me up easily by just typing in the name.

The web site is;

http://mortgage.nationwidelicensingsystem.org/profreq/testing/Pages/default.aspx

Now with all that said. You or someone you know needs to buy a house. Folks that get an FHA loan will find the mortgage insurance higher if we have not ordered an appraisal by April 5th. It is significant (a thousand bucks added to the loan on a $200,0000 loan. So the time is now.

Check the video out for a chance at a free gift card to O'Charleys'.

2010-03-11T08:09:00.001-06:00

Starting Sunday afternoon Carolyn, Daniel and I spent 20 hours in class preparing for our Safe Exam. That is a test that our great leaders in Washington have devised for mortgage originators. It sound good and we covered a lot of good material (although it was mostly review for us). There are a lot of people that really need it. Unfortunately there is a giant flaw in the program. The originators that work for the banks (that's the guys with all the lobbying money and clout ) are exempted from the whole thing. So if you want a loan from someone who has not had the training and maybe went to work at a place specifically so he could avoid the testing, call your local bank originator.

2010-03-05T11:47:00.000-06:00

I know you guys think I am a broken record.......but the tax credits expire in about 8 weeks. You have to have a completed contract in place by April 30 and it must be closed by June 30.

If you remember there is a $6500 credit for a move up buyer. This buyer has to have lived in their present home for 5 years. He does not have to sell it
The first time buyer is defined as someone who hasn't owned a home in 3 years.
Here is a web site to answer questions or feel free to call or e mail me by hitting the reply button.

http://www.federalhousingtaxcredit.com

When is the best time to buy a home?

2010-02-24T16:13:00.001-06:00

I truly believe that now is an unbelievable time to buy a home. First I will address a first home (defined as the first in three years).

1. The Federal Government is going to send you a check for up to $8,000.

2. THDA will give you a grant for up to $8876,

3. The Realtor can usually get the seller to pay up to $7239. This leaves you with zero out of pocket.

4. Interest rates are at historic lows.

5. Real Estate is on sale. Prices are often as low as they were five years ago.

Now for an existing home owner (defined as having lived in your present home for 5 years).

1. The Federal Government is going to send you a check for up to $6,500.

2. The Realtor can usually get the seller to pay up to $8152 ( on an example of a $226,000 home).

3. Interest rates are at historic lows.

4. Real Estate is on sale. Prices are often as low as they were five years ago.

5. If you have to take a loss on your present home, you should be able to more than make it up with the bargain you get on the new one.

Call me at 777-HOME (4663) or e-mail me for details by hitting the reply button.

The Credit CARD Act of 2009

2010-02-18T13:38:00.000-06:00

On May 22, 2009, President Obama signed the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009, marking a turning point for American consumers and ending the days of unfair rate hikes and hidden fees. Every year, Americans pay around $15 billion in penalty fees. Nearly 80 percent of American families have a credit card, and 44 percent of families carry a balance on their credit cards.

Key Elements of the Credit CARD Act of 2009

Bans Unfair Rate Increases: Financial institutions will no longer raise rates unfairly, and consumers will have confidence that the interest rates on their existing balances will not be hiked.

Bans Retroactive Rate Increases: Bans rate increases on existing balances due to "any time, any reason" or "universal default" and severely restricts retroactive rate increases due to late payment.

First Year Protection: Contract terms must be clearly spelled out and stable for the entirety of the first year. Firms may continue to offer promotional rates with new accounts or during the life of an account, but these rates must be clearly disclosed and last at least 6 months.

Bans Unfair Fee Traps:

Ends Late Fee Traps: Institutions will have to give card holders a reasonable time to pay the monthly bill at least 21 calendar days from time of mailing. The act also ends late fee traps such as weekend deadlines, due dates that change each month, and deadlines that fall in the middle of the day.

Enforces Fair Interest Calculation: Credit card companies will be required to apply excess payments to the highest interest balance first, as consumers expect them to do. The act also ends the confusing and unfair practice by which issuers use the balance in a previous month to calculate interest charges on the current month, so called "double-cycle" billing.

Requires Opt-In to Over-Limit Fees: Consumers will find it easier to avoid over-limit fees because institutions will have to obtain a consumer s permission to process transactions that would place the account over the limit.

Restrains Unfair Sub-Prime Fees: Fees on subprime, low-limit credit cards will be substantially restricted.

Limits Fees on Gift and Stored Value Cards: The act enhances disclosure on fees for gift and stored value cards and restricts inactivity fees unless the card has been inactive for at least 12 months.

Plain Sight /Plain Language Disclosures: Credit card contract terms will be disclosed in language that consumers can see and understand so they can avoid unnecessary costs and manage their finances.

Plain Language in Plain Sight: Creditors will give consumers clear disclosures of account terms before consumers open an account, and clear statements of the activity on consumers accounts afterwards.

Real Information about the Financial Consequences of Decisions: Issuers will be required to show the consequences to consumers of their credit decisions.

Issuers will need to display on periodic statements how long it would take to pay off the existing balance and the total interest cost if the consumer paid only the minimum due.

Issuers will also have to display the payment amount and total interest cost to pay off the existing balance in 36 months.

Accountability: The act will help ensure accountability from both credit card issuers and regulators who are responsible for preventing unfair practices and enforcing protections.

Public posting of credit card contracts: Today credit card contracts are usually available only in hard copy and not in plain language. Now issuers will be required to make contracts available on the Internet in a usable format. Regulators and consumer advocates will be better able to monitor changes in credit card terms and evaluate whether current disclosures and protections are adequate.

Holds regulators accountable to enforce the law: Regulators will be required to report annually to the Congress on their enforcement of credit card protections.

Holds regulators accountable to keep protections current:

Regulators will be required to request public input on trends in the credit card market and potential consumer protection issues on a biennial basis to determine what new regulations or disclosures might be needed.

Regulators will be required either to update the applicable rules, or to publish findings if they deem further regulation unnecessary.

Increases penalties: Card issuers that violate these new restrictions will face significantly higher penalties than under current law, which should make violations less likely in the first place.

Cleans Up Credit Card Practices For Young People at Universities. The act contains new protections for college students and young adults, including a requirement that card issuers and universities disclose agreements with respect to the marketing or distribution of credit cards to students.

http://www.whitehouse.gov/the_press_office /Fact-Sheet-Reforms-to-Protect-American-Credit-Card- Holders/

George says: Too bad these companies got a year to stick everybody before the rules changed.

Sent by Jennifer Hamby

Refinancing...

2010-02-10T16:28:00.000-06:00

A lot of folks that could refinance have not refinanced. The rates are still really good. Many probably wonder if they qualify. If they would call me at 777-home (4663) OR Daniel, we can determine that quickly. There is no embarrassment if it won't work. We just try to give constructive hints. Also some people worry that their home won t appraise and that is true very often. However if someone currently has an FHA loan there is a way that it can be done without an appraisal. There is not always a benefit, but very often it works out well. Just give us a shout or reply to this e-mail and we can take a look.

If you know someone in the market for a new home at the great terms available today please give them my number 777-home (4663) or e-mail george.margrave@migonline.com and we will take care of it.

Endorsements...

2010-02-03T16:56:00.000-06:00

We just wanted to pat ourselves on the back a little. We received a couple of great endorsements this week. Here they are;

"George and Daniel-Just wanted to say thanks for all your efforts with Margaret's loan. I was so proud for her because she has had some hardships the past few years and was excited when you said you could get her qualified because it gave her hope. The closing was smooth and no problems. "

"My son, Jacob Kennedy recently purchased a home in Chapmansboro, TN, and I wanted to let you know how much I appreciate all the work you did to make this an easy process for him. He is a first time buyer and it was important to have someone who would take the time to answer all the questions we had about the process. You surely made the process painless for him. Your firm was recommended to us by friends, and I would recommend anyone who is buying a house in the Nashville area to call you. Again, a BIG THANKS to you and your firm for your help."

This week the rankings came out for the loans closed State wide and MIG finished 4th. Pretty good since all of the other 9 in the top ten were banks. We also finished as THDA s number one lender for the 7th straight year.

If you know someone in the market for a new home at the great terms available today please give them my number 777-home (4663) or e-mail george.margrave@migonline.com and we will take care of it.

2010-01-29T10:19:00.000-06:00

Are you ready for the blizzard of 2010?

I am. But the good thing is if we get sent home early, we are still available for you. My cell number is 481-L OAN (4663). And I know you guys will be out in your 4 wheel drive SUV’s writing contracts. If you need numbers or a quick pre-qual just call me.

Well there is another hammer about to fall on the long term lending business. FHA is requiring that there appraisal be handled in a method similar to (do I dare say it) HVCC. And you know what a nightmare that has been. It Starts Feb 8.
Not to worry. We have the answer. You know these types of things tend to punish the good guys (that is us). The crooks don’t abide by the rules anyway. But we know how to avoid the punishment and protect you. We have set up an FHA rotation that only includes good FHA appraisers that we trust. So no matter who it gets assigned to it will be quick and efficient. So there ”take that HUD”.

RESPA

2010-01-21T07:31:00.001-06:00

My team just closed our first loan under the new RESPA laws and it went great. At least it was great for my clients and the Realtor. And to toot our own horn we closed it in 10 days from application. People say that can't be done anymore, but we just did it. Of course, it is probably easier if you (or your friend that hopefully you will refer to us) go to www.mignashville.com so that we can get the pre- approval done first.

If you know someone in the market for a new home at the great terms available today please give them my number 777-home (4663) or e-mail george.margrave@migonline.com and we will take care of it.

Interest Rates

2010-01-15T14:26:00.000-06:00

Do you (or someone you would refer to me) want to deal with a person who does not realize how the whole mortgage interest rate thing works? I don't want anyone to think I know what the rate tomorrow will be. But in the short termI would like to be able to advise you if it is it a good time to lock in a loan. I would first tell you that I can probably only give insight for what might happen in the next few hours. Things are even more complicated since the Federal Government is trying to manipulate the market with their purchases of MBS (that is mortgage backed securities). I would first think back on the economic news of the day. If it was upbeat, that would be an indication that rates would increase. If people are buying stocks they are usually selling bonds and vice versa. Then I would check my sources for the movement of the MBS. Most people are told that long term rates follow the 10 year bond. That is not the best indicator but with this and a lot of other info, at the end of the day, it is anyone's guess. I almost always tell someone that if they are happy with their numbers let us lock the rate. I have seen transactions totally slip away and people not able to get their dream home because rates can be so volatile sometimes.

Financial Tips for 2010

2010-01-06T16:27:00.000-06:00

"Resolve" to Stop Wasting Money

The New Year is the perfect time to take a look at your spending habits and "resolve" to avoid wasting money where you don't have to. Here are some main areas that many of us waste money unnecessarily...and some simple steps to ensure a bright financial 2010.

Meals at the Workplace

Working Americans spend an average of $6 when they buy their lunch at work. The average cost drops to $2 when we bring our lunch from home. That's a difference of $4 a day, or $20 a week, or over $1,000 a year. Consider adding this savings to your savings account, and after just a few months you'll really see the difference add up.

Utilize the Public Library

By obtaining a library card, you can save on books, magazines, and especially DVD rentals. If you average 3 DVD rentals a month, you're spending approximately $144 a year. That's $144 that could be deposited into your bank account. For every book you check out, find out what it would have cost if you'd bought it. Deposit that amount into your account, too.

Don't be Afraid to Ask for Discounts

If you're paying bills or buying items such as airline tickets based solely on the price you're quoted, you could be wasting money. Many companies provide discounts on goods and services but only for those customers who request them. It never hurts to ask so start asking.

Save Gas

Consult the owner's manual of your car and learn about the manufacturer's recommendations for optimal gas mileage. Put the suggestions into action and see what happens. After a month, you should be able to see if you're spending less on fuel. Take the savings and stash it away.

Sell Your Junk

Come Springtime, go through your closets, garage, and CD collection. Figure out which items you no longer use. You can either hold a garage sale or locate stores which buy and sell used merchandise, and sell the items to them.

Do Away with Disposable

From razors and batteries to paper towels and plastic bags, your home is filled with products which are meant to be thrown away. Most of these disposable items have either a permanent or semi-disposable counterpart. Switching over to these more durable items can yield a savings of $4 a week or $200 a year.

Get the Most Out of Your Utilities

Many of us are overspending on our utility bills for no other reason than our own apathy. If you haven't already switched over to low-flow shower heads and toilets it's probably time to do so. Also, get into the habit of turning off lights when not in use. Did you know that most utility companies offer a free online energy audit? This way you can see exactly where you're wasting money.

Here's to a bright financial future in 2010!

From Mortgage Market Guide

2010-01-04T16:19:00.000-06:00

Although I did not put this together, it is a good thing to keep. It came from Mortgage Market Guide and Kiplinger.

Your 2010 Money Calendar

Key dates to bookmark for the year ahead. By Jessica L. Anderson, Associate Editor of Kiplinger's Personal Finance magazine.

JANUARY
1 - Parents of college-bound high school seniors: Fill out Free Application for Federal Student Aid (FAFSA).
4 - First trading day of 2010.
7 - Set financial goals, update your budget and resolve to pay off holiday debt (see "Four Ways to Trim Your Spending").
8 - Convert traditional IRA to a Roth; income limits for conversions are gone.
15 - Estimated federal taxes for the fourth quarter of 2009 are due.
20 - Consult with a financial planner: Your Money Bus stops in Greensboro, N.C.
21 - Seniors: If you're over 70½, talk to your IRA administrators about resuming regular required minimum distribution payments.
26 - Federal Open Market Committee meets to review interest rates.

FEBRUARY
2 - Think taxes: Your 1098, 1099 and W-2 statements should arrive by today. Finish gathering tax documents and put them in a folder for later.
4 - Your Money Bus stops in Charleston, S.C.
7 - Billions of dollars in bets will be riding on Super Bowl XLIV.
12 - Investors: Standard & Poor's 500-stock index has gone down 15 of the past 18 years on the day before Presidents Day weekend. You could pick up some cheap shares.
15 - Presidents Day. Before you hit the sales, take our quiz to find out what kind of spender you are.22 - New credit-card rules go into effect.
22 - Your Money Bus stops in Palm Beach, Fla.

MARCH
1 - Shoulder season starts today and runs through May. Look for bargains on travel.
3 - Keep an eye out for proxy forms. They'll let you vote on shareholder issues without being present at the annual meeting.
6 - Think taxes: Assign value to stuff you donated to charity if you itemize deductions.
9 - Your Money Bus stops in Birmingham, Ala.
14 - Daylight Savings Time begins. Spring forward.
15 - Deadline to empty your 2009 health-care flexible spending account (if your plan allows the 2½-month grace period).
16 - Federal Open Market Committee meets to review interest rates.
19 - Triple Witching Day for the stock market: Contracts for stock-index futures, stock-index options and stock options all expire together. Brace for volatile trading.

APRIL
1 - It's Financial Literacy Month. Take the Kiplinger quiz on your financial know-how.
1 - Seniors: Deadline for taking your first required minimum distribution from IRAs and other retirement accounts.
2 - Your Money Bus stops in Cleveland.
3 - Prepare your income-tax return this weekend.
12 - First-quarter earnings announcements for the Dow Jones industrials begin with Alcoa.
15 - File your tax return or request an extension. Estimated federal taxes for the first quarter are due.
16 - Expect a big tax refund? Adjust your withholding.
22 - Earth Day. Save money and the planet by switching to compact fluorescent bulbs.
27 - Federal Open Market Committee meets to review interest rates.

MAY
1 - Berkshire Hathaway annual shareholders meeting, in Omaha. Treasury announces semiannual I-bond rates.
2 - Mother's Day is May 9. Find a gift deal at www.dodtracker.com.
6 - Your Money Bus stops in Fort Worth.
11 - Celebrate the 100th anniversary of Glacier National Park. A visit to one of the 58 national parks is a great idea for an inexpensive summer getaway.
12 - Book a tune-up for your air-conditioning or sprinkler system before summer sets in.
19 - Start planning your summer vacation (use a booking site such as Kayak.com).
27 - College-bound high school grads: Complete student-loan applications, including those for federal Stafford loans and federal PLUS loans for parents.
30 - Use your tax refund to pay down credit-card balances or seed an emergency fund.

JUNE
1 - Investors: The stock market historically dips the week after Memorial Day. Look for cheap buys.
3 - Your Money Bus stops in San Diego.
7 - Recent college grads: Consolidate student loans. Make a money-smart plan for what to do with your graduation cash (start an IRA, create an emergency fund).
12 - Shop for Father's Day on June 20.
15 - Estimated federal taxes for the second quarter are due.
17 - Your Money Bus stops in Portland, Ore.
21 - Investors: Dow down 17 of the past 19 years-don't sell this week.
22 - Federal Open Market Committee meets to review interest rates.

JULY
2 - Midyear financial checkup: Update the goals you set in January and rebalance your portfolio, if necessary.
4 - Independence Day. Break free from debt by tallying up what you owe and making a plan to pay it off.
7 - Your Money Bus stops in Colorado Springs.
12 - Second-quarter earnings announcements for the Dow Jones industrials begin with Alcoa.
21 - Reshop your auto insurance (www.insweb.com), homeowners coverage (www.accucoverage.com) and life insurance (www.accuquote.com).
26 - If you're over 50, find out about long-term-care insurance: Take our quiz to learn more.

AUGUST
1 - Shop early for an end-of-the-model-year car deal. You'll get the best combination of price and selection as dealers clear inventory.
3 - This is the month for statewide sales-tax holidays for back-to-school shopping. Find out whether your state has one.
5 - Your Money Bus stops in Omaha.
9 - Investors: Prepare to hunker down. From 1988 to 2005, August was the worst month for the Dow and the S&P 500.10 - Federal Open Market Committee meets to review interest rates.
24 - Investors: Look for the market to gain strength. The end of the month has been strong for the past five years.
26 - Renegotiate the rate on your credit card.

SEPTEMBER
1 - Fall marks open-enrollment season for employer health-insurance plans. Review your options, even if you can keep the same coverage.
2 - Start scouting for deals for holiday travel. Wednesday is the cheapest day to fly, with the exception of the Wednesday before Thanksgiving.
3 - Investors: Watch for stock-market instability. Triple- digit Dow moves are commonplace leading up to Labor Day.
9 - Your Money Bus stops in Milwaukee.
15 - Estimated tax payments for the third quarter are due. Deadline for submitting corrections to your FAFSA.
21 - Federal Open Market Committee meets to review interest rates.
30 - Your Money Bus stops in Washington, D.C.

OCTOBER
1 - If you're self-employed, deadline to establish a Simple IRA.
2 - Financial Fitness Workshop, in New York City.
7 - Third-quarter earnings announcements for the Dow Jones industrials begin with Alcoa.
8 - If you've lost money on a Roth IRA conversion, you can still recharacterize. Contact your Roth sponsor ASAP.
15 - Deadline to file your tax return if you requested an extension in April.
21 - Get Smart About Credit Day. Buy your FICO scores at www.myfico.com.
22 - Investors: Look for good buys on depressed stocks; October has marked the end of 11 post-World War II bear markets.

NOVEMBER
1 - Treasury announces semiannual I-bond rates. Buy candy on the cheap after Halloween.
2 - Federal Open Market Committee meets to review interest rates.
7 - Daylight Savings Time ends.
8 - New college grads: First student-loan payments are due this month.
15 - Open enrollment begins for Medicare Part D and Medicare Advantage plans, and continues through December 31. (See "Choose the Right Medicare Plan for Your Needs".)
17 - Investors: Time to sell? The Dow has been up 13 of the past 16 years in the week before Thanksgiving.
24 - Log on to www.gottadeal.com to plan your Black Friday/Cyber Monday shopping strategy.
29 - Cyber Monday: Save on sales at most online retailers.

DECEMBER
1 - Investors: Before you buy a mutual fund in a taxable account, check the fund's Web site for its ex-dividend date and purchase shares after that date to avoid a tax bill.
5 - Make year-end donations to a charity or your alma mater and lock in a tax deduction (see "Five Ways to Check a Charity").
13 - End of 2010 is your last chance to make energy- efficient home improvements and get a 30% tax credit up to $1,500 (deadline: December 31).
14 - Federal Open Market Committee meets to review interest rates.
18 - Best time of the year to buy a computer-deals range from 15% to 50% off, or you could score a free printer or software package.
31 - Deadline for taking annual required minimum distributions from your retirement accounts, setting up a solo 401(k) plan and enrolling in a Medicare prescription-drug plan.

Reprinted with permission. All Contents c 2009 The Kiplinger Washington Editors. www.kiplinger.com

New Government regulations alter closing schedules

2009-12-17T08:01:00.000-06:00

Starting January 1, 2010, the Real estate and Mortgage industry is going to find themselves struggling to digest a new good faith estimate and HUD 1 (closing statement) system. There are three pieces of legislation involved.

1. HOEPA --Home Ownership and Equity Protection Act.

2. HERA -Housing and Economic Recovery Act.

3. SAFE--Secure and Fair Enforcement for Mortgage Licensing ActLater I will address in detail some of changes. In the meantime, here are some of the bullet points.

We as mortgage lenders cannot collect any fees other than credit report fees until the borrower has received their initial disclosures. ( We don't collect the credit report fee up front and we will of course do our best to keep this from impeding loan approval)

No borrower may close until seven business days have passed from receipt of those disclosures.

The homebuyer must receive a copy of the appraisal at least three business days prior to closing. (this can be waived)

The homebuyer must receive a revised Truth in Lending disclosure at least three business days before closing.

An increase of more than .125% in the APR can delay the closing. Unlocked rate, change in loan amount, product change, rate re-lock, change in closing date or changes to fees, inclusive of settlement agent fees are items effecting the APR.

Consumers will have easy access to loan originator's history .

This is not all. So you can see that with all these new things to worry about, it is more important than ever to go to reputable lenders like George's team at MIG so that closings are not delayed.

Planning for 2010

2009-12-09T14:40:00.000-06:00

A number of years ago I created and taught a course called "Taking Control of Your Time and Your Life." It was a time management/life management/financial planning/motivational program. I taught one- and two- day versions of the program and often did shorter keynote type addresses to different groups on the content from the course.

I came across this piece recently and it is still great advice, no matter what market conditions exist. Annual business planning should be done in the context of your life plan.

Now is the time to begin the thought process which will lead you through a successful 2010, in both your business and your personal life. It is important to realize that any year is just part of a much bigger picture. Do not short change yourself when it comes to the planning process.

The sooner you begin to think about the process the better, and the less time it will actually take to commit your plans to writing and move into implementation. Give yourself the time you need to plan. Make it a priority. Planning is essential to success. This has been said many ways and two of my favorites are:

"If you don't know where you are going, any road will take you there."

"Not having a plan is planning to fail."

The week between Christmas and New Years Day works well as a planning period for me. Things are usually slow that week and I have time to reflect on the past year while I plan for the New Year.

Planning will give you your best shot at success. Success means different things to different people, so begin your planning process by broadly defining what success means to you and giving thought to your vision of a successful 2010. To some, success will be more income; to others it will be more time spent with family and friends; to others a combination of the two...and to others...well, who knows.

Defining what success is for you and prioritizing your goals requires an examination of your values. How important are the following to you?

· Family
· Charity
· Helping others (Money)
· Helping Others (Deeds)
· Spirituality/Religion
· Wealth and Material Possessions
· Education· Self-improvement
· Security
· Happiness

Planning for the future must be done in the context of the future. You can't effectively plan for the future from the present.

You must first step out "into the future" by developing your vision of the future, and then, "from the future," you will be able to plan your way to THAT future, from the present.

Make sense? Just as we all have 20/20 hindsight and can see the important steps that led to success from our past, those important steps to insure success in the present can be more clearly viewed "from the future."

When considering what you will do each day...as you prioritize your daily tasks, keep in mind that time is a precious commodity, and none of us has enough of it. What you do today must help you achieve what you want to have achieved by the end of the week...and the end of the month...and the end of the year...and each year's accomplishments should contribute to where you want to be in five years, ten years, and ultimately your lifetime.

Your daily decisions should be made with the bigger picture in mind. You need to determine the "long range" as it will have an impact on the choices you make today.

One way we measure our success is by the accomplishment of our goals. Goals give us direction. It is important to set goals. A mistake made by many is setting goals too low. Human beings are capable of great accomplishment; don't sell yourself short. As Bing Crosby sang in the musical A Connecticut Yankee in King Arthur's Court:

"There's nothing to be ashamed of, if you stub your toe on the moon.

" To be effective, goals must be:

1. Written - This will begin the process of making the goal "real." Place your goals in front of you daily.

2. Specific - Specificity will allow you to focus your intent...a key ingredient to success.

3. Measurable - This will help keep the goal "real."

4. Valued - Based on what is important to you, this will allow for the prioritization of your goals.

5. Shared - This will help create the commitment needed to accomplish even the loftiest goal.

Commitment is the secret ingredient. As human beings we are capable of accomplishing whatever we determine is important enough for us to accomplish. Choose your goals and commit to them wisely...because once you truly commit, the accomplishment will follow.

As for your real estate business:

Begin with the dollar amount you wish to earn in 2010. Calculate your average dollar earned per transaction in 2009. Calculate the number of transaction sides required to hit your dollar earned goal for 2010. Based on past experience, determine the number of contacts and calls required to hit your number. Make sure you make that number of contacts, at a minimum, each day.

Think about your goal each day.

It's a grind, but the road to success is usually a grind. Doing what you like to do makes it easier, but there is still a lot of "grunt work" along the way.

By Saul Klein

If you know someone in the market for a new home at the great terms available today please give them my number 777-home (4663) or e-mail george.margrave@migonline.com and we will take care of it.

Thanksgiving thoughts

2009-11-25T13:57:00.000-06:00

As I write this I think back to Thanksgiving 2009. I along with many Americans and I suppose people all around the civilized world was afraid of the future. It was a time when it looked like a good possibility that the financial world would crumble. The markets were in free fall. Almost everyone who had saving and retirement plans had seen them tumble to only a fraction of what they had been previously. My personal income took a major hit. It seems that most of these problems had started with greed.

Now as I look back I can see that God took care of us. I really don't think it had much if anything to do with our Government. Fortunately most people have seen their investments grow back to more reasonable numbers although they are still probably worth less than they were. For many including myself, the dose of reality was very good. I am very thankful that my business has recovered and in fact it has been a very good year thanks to all my good friends and clients. Now there are many people still looking for work ( my brother being one of them). The road back for the unemployed is the most difficult. I think we can all help by watching out for job opportunities for our friends that need one. By the way Ande is looking for a sales position.

And we can help by spending a little money in the economy to grease the economic wheels. But I think we will all remain a little more frugal and are more likely to live within our means.

There are probably two reason my teams business has done well. The first is that we were well positioned to help First Time Buyers. And with the tax credit extension ( In fact move up buyers can benefit now) that should continue for a while. The other reason is the very low interest rates. If you know anyone who might benefit, please ask them to contact me. A consultation is free.

Thank You to all of my good customers and friends Happy Thanksgiving!

FHA Streamlines

2009-11-19T08:04:00.001-06:00

There has been a lot of issues with appraisals these days. It is keeping many people from refinancing to lower rates. That is because you need a little equity based on a new appraisal to finance closing cost. Of course if someone wishes, they can pay them out of pocket. But that doesn't happen often. The reason I bring this up is that if a person has an FHA loan with a rate of 6.5% or higher, we (MIG) can reduce their rate to 5.5% and pay most of the cost for them. And we can do this without an appraisal. So if you know someone like this, it would help them and us if your referred them to me at 777-HOME (4663).

It's Official: More Homebuyers Qualify for Tax Credit

2009-11-11T14:30:00.000-06:00

On November 6, 2009, President Obama signed an expanded version of the $8,000 first-time home buyer tax credit that was set to expire on November 30, 2009. The new version of the tax credit goes into effect on November 7, 2009 and has the potential to stimulate the housing market even more than the old version. More people will qualify under the new rules. Although the tax credit remains at $8,000 for home buyers who have not owned a primary residence in the last 3 years, it has been expanded to include a $6,500 tax credit for home buyers who have lived in their current primary residence for at least 5 consecutive years out of the past 8 years. Under the old rules, move-up homebuyers did not qualify. Consider these examples:

Example 1:

Jane purchased a home in 2002, lived there for 5 years as her primary home, moved out in 2007, and turned that home into a rental property. If Jane decides to buy a new primary residence today, she would qualify for the $6,500 tax credit because she lived in the same residence as her primary for at least 5 consecutive years out of the past 8.

Example 2:

Harry purchased a home in 2004, and lived there for the past 5 years as his primary home. If Harry decides to buy a new primary residence today, he would qualify for the $6,500 tax credit because he lived in the same residence as his primary home for at least 5 consecutive years out of the past 8.

Example 3:

Nicole purchased a home in 2006, and lived there for the past 3 years as her primary home. If Nicole decides to buy a new primary residence today, she would not qualify for the $6,500 tax credit because she did not live in the same residence as her primary home for at least 5 consecutive years out of the past 8.Example 4:Bob, an existing homeowner, signed a contract on October 22, 2009, to purchase a new home. He has lived in his current home for more than 5 consecutive years and is within the new income limits. He will go to settlement on November 22, 2009. Bob will qualify for the new $6,500 tax credit as there is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.

The tax credit applies to homes that are purchased for less than $800,000 and before May 1, 2010. If you sign a binding contract to purchase a home before May 1st, you would need to close on the transaction before July 1, 2010. This is similar to a gift certificate that can be redeemed for cash. You simply file a form with the IRS right after you buy your home, and the IRS will send you a check for the full amount of your credit.

The income limitation for single tax payers went up from $75,000 under the old rules to $125,000 under the new rules. For married tax payers, the income limitation went up from $150,000 to $225,000. This means that more people will qualify for the credit -- especially in parts of the country with higher costs of living. This should help stimulate parts of the housing market that may not have been impacted by the old versions of the credit. Some of these are feeder markets for the Upper Cumberlands. As these sellers relocate, higher sales in those markets could translate into more sales here.

There are many creative ways of structuring your home purchase transaction. The licensed and certified mortgage professionals at Mortgage Investors Group can help maximize the benefits of the credit. Here are a few examples:

* The credit applies to 1-4 unit homes as long as you live in one of the units as your primary residence. You could live in one unit and rent out the others.

* If 2 unmarried individuals buy a home, and only one of the individuals qualifies for the credit based on their income, or past home ownership status, the individual who qualifies for the credit can claim the full credit. (Note: In the case of married couples, both spouses must qualify for the credit.)

* The credit applies even if you have co-signers on your mortgage loan.Today's good news regarding the expanded home buyer tax credit will have a positive impact on housing nationally. It is vitally important to share this information with our community so that we can benefit here at home as well.

From John Brewington

First Time Home Buyer Tax Credit

2009-11-04T14:29:00.000-06:00

The time is close. Unless the law is extended, the pressure is mounting. We would have no problem getting an FHA, VA or Conventional loan approved and closed before the deadline of Nov 30. But if a first time buyer needs the down payment assistance of THDA, we have less than 2 weeks left to get a loan submitted to THDA before the Nov 16 deadline( they have said they will guarantee underwriting will happen in time to close if they receive it by then. ) so it is not too late. Have your friends or relatives who are interested. Call me at 777-HOME (4663) for priority service.

First Time Home Buyer Tax Credit

2009-10-28T15:59:00.000-05:00

I know everyone is tired of hearing about this, but the fact of this is if you or someone you know is eligible and even considering buying a new home they need to call me at 777-HOME (4663) to learn the details. Don't depend on the government extending it. It might not happen. And it is just too good to pass up. Loan eligibly just might be easier than you think in spite of all the stories you hear.

The bottom line is it is a THREE Way Winner.

1. $8000 cash to the buyer from the US Government.

2. The real estate market is featuring bargain basement prices.

3. The interest rates are great. ( and you do not have to have a down payment to pull this off).

If you know someone in the market for a new home at the great terms available today please give them my number 777-home (4663) or e-mail george.margrave@migonline.com and we will take care of it.

2009-10-21T17:01:00.001-05:00

I went to a function last week where the speaker Theresa Wilson from the Williamson County Association of REALTORS was the speaker. Here is something she said which got my attention. The average Realtor in our area has about six years experience. So until recently the market share for FHA loans in this most recent decade was very small. So most of our Realtors are not familiar with FHA financing. That is where we come in. My team has been financing homes in a big way with FHA since 1985. It is by far the best way for a buyer with minimum funds for closing to buy that new home. (also for refinances where small amounts of equity are problematic) And yours truly is the one to contact. We will make it so easy, the Realtor won't even know it is different from what they are used to. My number is 777- HOME (4663) and e-mail is george.margrave@migonline.com.

Tennessee's a Desirable Place to Live!

2009-10-15T08:00:00.000-05:00

A recently released Harris Interactive poll asked Americans where they would choose to live if they did not live in the state where they are now. 2,498 U.S. adults were surveyed online between August 10 and 18, 2009, and Tennessee made the top 10!

1. California

2. Florida

3. Hawaii

4. Texas

5. Colorado

6. Arizona

7. North Carolina

8. Washington state

9. TENNESSEE

10. Oregon

Of course, we already knew that it's great to be in Tennessee! So let's see. Interest rates are near record lows and prices for homes are rolled back to levels we saw 4 years ago.

Why haven't you called me yet at 777- HOME (4663) .

If you know someone in the market for a new home at the great terms available today please give them my number 777-home (4663) or e-mail george.margrave@migonline.com and we will take care of it.

Spread the Link & Spread the Word!

2009-10-09T10:17:00.000-05:00

http://www.youtube.com/watch? v=PNzq345w6MY

Spread the link! Spread the word!

Time is running out on the First Time Homebuyer Tax Credit! Unless this program is extended by Congress -- and we hope it IS -- a homebuyer is eligible for the tax credit ONLY if the home is "purchased" before December 1, 2009.

That means that buyers have to find a house, complete a contract, satisfy any contingencies, secure financing and go to closing by November 30. Accomplishing those tasks by November 30 will become more difficult with every passing day. In today's market, it generally takes between 45 and 60 days to go from contract to closing.

This is from the Tennessee Association of Realtors and I couldn't say it better myself.

If you know someone in the market for a new home at the great terms available today please give them my number 777-home (4663) or e-mail george.margrave@migonline.com and we will take care of it.

OUR PLEDGE

2009-09-30T16:06:00.000-05:00

George and his team at MIG has been known as a "production oriented, customer first, independent mortgage banker." That is rooted in a company history and philosophy of team work and "doing the right thing". A cornerstone of this philosophy has been timely, informed and constructive communication. This is both internally with fellow employees and externally with clients.

We believe now is the time to re-dedicate ourselves to that cornerstone of our business. We must maintain a level of internal communications between production and operations and our clients that is superior. Much of our competition has gone and the bigger companies will probably never serve you like we can. This is our opportunity to shine and we intend to do just that..If someone asks us to contact them we do so and as promptly as possible. If this is the way you would like to do business, my number is 777-HOME (4663).

If you know someone in the market for a new home at the great terms available today please give them my number 777-home (4663) or e-mail george.margrave@migonline.com and we will take care of it.

Need a mortgage? Consider an FHA loan

2009-09-23T14:30:00.000-05:00

Government-insured Federal Housing Administration loans now make up about 25% of the mortgage market. Here are five things you need to know;

1. Chances are good that you'll come across one. During the heyday of no-money- down lending, you were unlikely to have a buyer using a government-insured Federal Housing Administration (FHA) loan, which lets borrowers purchase a home with a down payment of as little as 3.5%. Now FHAs are the only game in town for anyone who can't put down the minimum 10% many banks require to get a conventional loan. About a third of buyers have 10% or less saved for a down payment, according to a recent Zillow.com survey. No wonder FHA loans have skyrocketed from 3% to 25% of the market. While you may not need to take out an FHA mortgage to purchase your next home, there's a good chance you'll be selling to someone who does.

2. Borrowers can qualify with any income. Historically FHA loans have gone mostly to low-income borrowers. But, in fact, there's no cap on what someone can earn. "The overriding factor that we look at is the ability to make payments," says Lemar Wooley of the Department of Housing and Urban Development. Borrowing limits may be higher than you think too: Though the max is $271,050 in areas where real estate is cheap, buyers can take up to $729,750 in high-priced markets like California or New York.

3. Expect a tough appraisal. The home will need a clean bill of health from a government-approved appraiser, and the seller must fix any issues before a buyer can close on the loan. A few years ago the FHA eased up on repair requirements for minor problems like missing handrails or cracked windows. But it still won't budge on leaky roofs or mold damage. If you're selling, know that an FHA appraisal stays on record for six months, even if the deal goes kaput or the buyer switches lenders. "Get one low FHA appraisal and you're stuck with it," says Dallas realtor Bruce Lynn.

4. These loans are pricier than they seem. Nominal rates on FHA mortgages are comparable to those on conventional loans. But hefty fees on the FHA variety up the cost. There's a 1.75% upfront charge as well as a 0.5% annual insurance premium for five years and until the principal balance hits 78% of the sales price or the home's appraised value. If you're buying, ask if the seller will pick up some of the insurance costs as part of the deal, says Manchester, N.H., realtor Scott Godzyk. According to FHA rules, sellers can pay closing costs up to 6% of the home price.

5. They've gotten easier to obtain. FHAs once had a well-deserved rep for onerous paperwork and a longer, more difficult closing than conventional loans. But thanks to a new automatic underwriting system and the looser repair requirements, FHA mortgages take only a few days longer than conventional loans to close, says Bill Banfield, a vice president at Quicken Loans. FHA loans still require written documentation of income, including pay stubs and tax returns. But stricter underwriting across the board means that you will probably need such paperwork no matter what type of loan you get.

By Beth Braverman, Money Magazine staff reporter

My take on this is that really if you don't have 20% for a down payment, FHA is usually by far the best for the borrower. Number 4 item makes it seem too expensive, but the fact of the matter is that if you don''t have the before mentioned 20%, you will most likely have mortgage insurance and FHA is better than most.As for the appraisal issues mentioned, any appraisal is now going to be closely scrutinized. We have a little more control over FHA appraisals until Jan 1, 20010, and then who knows?

Looking Back

2009-09-16T16:28:00.000-05:00

This September is the one year anniversary of when many of the financial institutions started going down and the government stepped in to manage the process. I certainly never dreamed that we would see Fannie Mae, Freddie Mac, and a host of other large financial institutions go away almost overnight. We then saw the economy "freeze up" and everyone's business reflected that consumer fear. Then beginning in November and December, we saw business take off and the 2009 refinance tsunami came ashore. We went from a fear of "too little" business in October to "too much" business in May and now the tide has returned to a more normal level. We have also had to communicate and absorb an overwhelming number of guideline changes and new refulations put in place "to fix" the situation. The immediate impact of which further increased the work load and uncertainty as to "what is an approvable and saleable loan, today?". We have been in a reactive mode for the last year and while there are still changes to come, I believe it is time to look forward. We believe the healing process has began and we are happy to have survived so that we may continue to serve you.

Slightly altered comments from Steve Smith, MIG.

Reducing Junk Mail

2009-09-09T16:35:00.000-05:00

If you are tired of getting "pre-qualified" insurance and credit card offers in the mail, there IS a way to reduce the flow! Go to: https://www.optoutprescreen.com This website works like the National Do Not Call Registry for your credit report! By opting out, you are telling the Credit Bureaus that you do not wish them to sell your credit information for credit and insurance "Pre-qualified" offers. The home page explains the pros and cons to Opting Out.

The grapevine report concerning the possibility of the tax credit being extended...

2009-09-02T14:51:00.001-05:00

Our company deals with consultants in Washington in an effort to stay on top of current events. In regards to the possibility of extension of the tax credit, we are told the following. Here are their thoughts:---The trade groups, builders, realtors, are pushing for an extension, dollar increase and opening to all buyers. ---They believe that the economic data coming out between now and November deadline will be key and we will not know until October. Since there is evidence that housing is rebounding, there will be political pressure not to spend any more money. At the same time the current tax credit has played a role in the recovery. There is also pressure not to have the recovery stall by taking away the current tax credit. Bernake's comments will be key as to how the recovery is going. ---Here is how they would estimate, today, the likely outcome; ***1 in 3 chance to continue the tax credit "as is". ***1 in 5 chance to expand the credit to $15,000.***1 in 20 chance to open to a larger group of people, i.e. all buyers of new homes, etc. So with this in mind I would recommend that all interested parties do whatever possible to facilitate a closing by November 30.

HVCC (The Home Valuation Code of Conduct)

2009-08-26T15:35:00.001-05:00

I have been trying to hold my tongue until this new way of doing business with conventional loan appraisers was in place for a bit. I had hoped that somehow the powers that be would work out the kinks. I don't think it is going to happen. All Freddie Mac and Fannie Mac loans are affected which is basically most all of the conventional loan market. This affect's MIG, all banks, brokers and mortgage bankers. So you can't avoid it if you do a conventional loan.In case you don't know about HVCC you are probably fortunate, since it hasn't bit you yet. Here are the details. Neither the loan officer (that is me), my processor, anyone in my office the Realtor or the builder is allowed to know who will do the appraisal, where they work, nor can we ask for any particular value. Supposedly the appraiser is to work only in areas he knows, but from what I have seen that is questionable. We can have no contact whatsoever. The Realtor and home owner can speak to the appraiser, but that is about it. In many cases an appraisal management company will perform this ordering and monitoring service. Guess what that did to the price of the appraisal? And it also guaranteed a longer turn around time. Fortunately MIG didn't go the route of the appraisal management company. I believe that most of the horror stories originate with them. Once the appraisal has been received by the lender it is sent to the borrower. The loan then cannot close for three business days. I can see no benefit in that. Fortunately we just were given authority to waive this in some cases. To avoid the appraisal management company, our home office has set up a blind draw of appraisers who have done business with MIG over the years.It is just like being in middle school. Someone in class misbehaves and the whole class is punished. So the honest real estate practioners are being punished for the sins of those who violated ethical laws. With all this said , this is all the more reason to direct your transaction to someone who knows the ropes (That is George's Team) so that when and if problems arise, we can do our best to make things work out.

Top 2 Bottom Home Inspections owners Larry and Nancy Rollins take up the cause to help recover their grandson from Autism Spectrum Disorder

2009-08-19T13:58:00.000-05:00

"We need your Help!"

At age two "Gunnar Cole" was diagnosed with autism. Autism is a brain development disorder characterized by impaired social skills, communication, and by restricted and repetitive behaviors. While children with autism are remarkably intelligent and capable, they do not learn in the same way that the rest of us do. Traditional childhood training and schooling simply does not work with autistic children. What does work is Applied Behavioral Analysis Therapy (ABA Therapy). ABA Therapy can teach autistic children the skills they need for all aspects of life. Studies show that ABA Therapy works to recover 65% of cases where the child is started by age three and continues at a rate of 30 to 40 hours per week until age five or six. Little Gunnar Cole has been working 30 to 35 hours a week with ABA Therapy since he was two years old. A combination of special ABA therapies at "The Brown Center for Autism" here in Nashville, and private therapists at home have transformed Gunnar from a minimally responsive, non eye contact, two year old who would barely acknowledge anyone's presence to a bright and shiny three year old who loves to play with other children and adults alike. Our family, as well as, "friends of Gunnar", known within the family as "Gunnars Angels" are extremely excited by his progress. He is even starting to talk and is obviously exciting himself by all that language is bringing into his life. His teachers and therapists are telling us that Gunnar is a prime candidate for the 65% group that can be recovered.We can not stop now. To recover little Gunnar we must be prepared to keep this regiment up for three more years. Our problem is that Gunnar Coles schooling, therapies, and medical expenses run $80,000 to $100,000 per year. As a family, we have made it through the first year and are committed to completing this task for Gunnar. We are aware however that we will be coming up short this next school year by about $20,000, even after taking all the normal "in family" financial steps to raise money.Therefore, Nancy and I have decided to expand Top 2 Bottom Home Inspections and we are asking your help in doing so. We are going to raise that $20,000 for Gunnar Cole. Commencing immediately, the proceeds from all our home inspections beyond two per week will go directly towards Gunnars schooling, therapies, and medical expenses. We are asking for your help! Not for a donation of money, but for an opportunity to show you that we can provide a quality home inspection and personal service unmatched anywhere in Tennessee. After all, Gunnar is working almost a 40 hour week at age three, we should be able to do more. The old adage, "It takes an entire village to raise a child", has new meaning for us, and we hope for you as well.We thank all of you who are, will become, or who have been, supporting Gunnar Cole in his fight to beat Autism Spectrum Disorder! Larry and Nancy Rollins, Top 2 Bottom Home Inspections 498-4930. Larry is a good friend and if any of you can help while receiving a great inspection, it would be great.

The First Time Homebuyer Phenomenon

2009-08-12T17:14:00.000-05:00

Overall real estate is still down some from last year. But the segment of first time buyers is booming. The tax credit of $8,000 combined with the incentives of THDA (Tennessee Housing Development Agency) which could be as much as another $9,000 in grants. You combine this with interest rates in the 5's and home prices that sound like 2005 prices and it is almost too good to pass up. Now I am hearing Realtors saying they are starting to see the inventory of homes in these price ranges start to be a little wanting. So I recommend that if you know someone that would be interested in this, they need to get with it.

My number is 777-Home (4663) and my e-mail address is george.margrave@migonline.com And the sellers of these homes have to go somewhere. So that should feed through the whole market. So for the ones of us who have jobs, things do look better.

You Need Higher Credit Scores than Ever

2009-08-05T13:59:00.000-05:00

Three years ago, a credit score of 580 was good enough for you to earn approval for a wide range of attractive mortgages and other loans. Today, borrowers need scores well into the 700s (out of 850) to obtain similar terms. (George says that 620 will often work for a government loan. With Conventional loans the higher scores are more important).

Achieving these top-tier credit scores is tough enough when the system is fair. Often it isn't. Harmful practices by retailers and credit-reporting agencies can keep you from earning your rightful credit score. How to protect your score.

Decline all offers from stores that say, "No payments until."

Reason: Retailers typically team up with third-party finance companies to make these offers. They are the same finance companies that make high-interest-rate loans to high-risk borrowers. If one of these lenders is listed on your credit report, the scoring models that calculate your credit score might lower your score -- even if all you did was accept an offer to delay payments on a flat-screen television or a coffee table.

Do not apply for more than two or three credit cards, including store cards, within any 12-month span.

Reason: Each credit card you apply for, including store cards, posts a credit "inquiry" on your credit report. Make more than a few inquiries within a few months -- which often happens around the holidays when consumers take advantage of special card offers -- and your credit score might fall. These inquiries will continue to affect your credit score for 12 months.

Before you agree to become a customer, ask small lenders, cellular service providers and utilities whether they report on-time payment of bills to credit bureaus. If you have a choice of which company or lender to use, lean toward those that do report, so your responsible use of this credit counts in your favor.

Reason: With many credit card issuers, even when you act responsibly, you are not rewarded -- yet when you make even a small mistake, you are punished. Because many utility companies, cell phone service providers and small lenders, such as credit unions, don't bother to report on-time payments to any of the credit bureaus, they deprive their customers of an opportunity to improve their credit scores. But, if these customers default or their bills are turned over to a collection agency, that is reported, generally through the collection agency assigned to recover the debt.

Check your credit report for mistakes six months before applying for an important loan.

Reason: If you find an error on your credit report that is lowering your score, you can contact the credit bureau and correct the problem in time. If you don't check, when you apply for the loan, you may discover that your credit score is unfairly low.

No matter the mistake, it takes up to 30 days for credit bureaus to update credit reports. Best: Check your credit report with all three credit-reporting bureaus -- free -- once every 12 months at www.annualcreditreport.com. You can also purchase your credit score for $7.95 when you get your free report.

When a customer service rep agrees that a late or missed payment notice was in error, ask to be sent confirmation to this effect on company letterhead. This statement should note your name, account number and the date of the bill in question. If the erroneous late or missed payment later appears on your credit report, you can send copies of this statement directly to the credit bureaus.

Reason: Even when a lender agrees that it was wrong to accuse you of a late or missed payment, the lender may still report the problem to a credit-reporting agency. The customer service reps who correct the billing mistakes might lack access to the automated system that reports late and missed payments to credit bureaus.

DON'T FORGET THESE BASIC WAYS TO PROTECT YOUR SCORE

Use only a small amount of your available credit. Your credit score will suffer if you use more than 10% of your available credit on a particular account or among all your accounts.

Vary your credit. It's important to your score that you have many different types of credit, including several of the following: Credit card, retail store card, gas card, auto loan, home loan, student loan and personal loan.

Do not close old accounts. The older your credit card accounts, the better for your credit score.

John Ulzheimer / Credit.com

New Rules for College Credit Cards

2009-07-29T14:05:00.000-05:00

The credit-card bill signed into law by President Obama addresses some, but not all, of the industry's most controversial campus practices.The landmark credit-card legislation that President Barack Obama signed into law on May 22 offers a bevy of protections for card holders. It outlaws some of the industry's most contentious billing practices. Card companies, for instance, will no longer be able to raise interest rates on card holders' existing balances until the borrower is 60 days behind in payments. And it forces the companies to give customers ample notice-45 days-before jacking up rates. The bill also addresses some of the worst abuses of credit-card use on campuses. Without a co-signer, full- time college students under 21 will be confined to what amounts to credit-card training wheels, with credit restricted to 20% of a student's income. The presence of a co-signer protects college students from sudden rate increases; under the new law, a student's co-signer has to approve any such hikes. But the sweeping law, which takes effect in seven months, doesn't address every college credit-card controversy. Most notably it does little to address affinity-card contracts, which encourage colleges and universities to sell students' contact information to credit-card companies. These often confidential contracts bond hundreds of schools across the country with credit-card companies eager to sign up undergraduates. In some cases the school's financial reward increases handsomely when students frequently swipe their cards. Should Colleges Encourage Borrowing?Students at the University of Michigan, for example, probably aren't aware that their e-mail addresses and contact information are worth a whopping $25.5 million. That's how much Bank of America (BAC) is paying the Michigan Alumni Assn. over an 11-year affinity-card contract to market school-branded plastic to students, alums, and sports fans. The Michigan Alumni Assn., which forged the deal, gets 0.5% of total purchases racked up on the school-branded cards. And the University of Michigan is hardly alone in inking a contract that rewards it for turning over students' personal information-precious leads in the hunt for new customers. Such financial alliances, in which participating schools have an incentive to encourage credit-card use, raise questions about the role colleges should play in the credit-card debate. Should schools be entering into these agreements, encouraging students to amass often high-cost debt at a time when tuition costs have ballooned and growing numbers of students struggle to make ends meet? Roughly half of the nation's college students carry at least four cards in their wallets, shouldering an average of $3,173 in debt, according to Sallie Mae (SLM), the student lender that monitors college-debt levels. College students aren't just swiping their cards to pick up pizza tabs or buy school-spirited sweatshirts. They are increasingly using them for such big-ticket items as college tuition. Just five years ago, 24% of students charged a portion of tuition to a credit card-a number that has grown to about 30%, according to Sallie Mae.Online Payment Fees Will Be BannedAt the bill-signing ceremony, President Obama emphasized that the new law was aimed at upholding basic standards of fairness and accountability. He said that credit cards can be a valuable tool for consumers while he decried unfair billing practices that can transform credit cards from a "lifeline" to an "anchor." The bill is the first significant piece of legislation passed to rein in the credit-card industry in the past decade. Under the law, banks won't be able to raise rates on outstanding balances until a card holder is 60 days late with a payment. Even if consumers pay late and become subject to a rate increase, there's an escape hatch: If they pay on time for the next six months, the card company must immediately restore the lower rate. The bill also eliminates fees for paying balances online. More flexibility is built into the law as well. Credit-card companies now have to apply payments to that part of a consumer's debts that carries the highest interest rates.

http://www.businessweek.com/bwdaily/dnflash/cont ent/may2009/db20090522_377377.htm? campaign_id=yahoo

2009-07-22T14:08:00.001-05:00

A few days ago I sat down with a friend. His is a little older and is still working. He was wanting to pull cash out of his home on a refinance to pay some bills. But alas the numbers didn't work. But then I told him about our reverse mortgages. We are going to be able to pay off his current balance and pay off about a hundred thousand dollars in debt and he will only have to pay his taxes, insurance and upkeep on the home. Unbelievable but it is true. This will leave him in position where he can retire if he wants to. There is no credit check (although in this case the credit was great). There has to be substantial equity in the home and you have to be over 62. If you know someone this would help please let me know.

Today's market

2009-07-16T07:09:00.000-05:00

On the financial scene the stock market had a big day. In fact it seems to have started back up. That could also mean the rates are going to follow. That is the way the past few days have looked. It is good for the 401k, But it makes the refinancing numbers look less attractive. Home sales as seen from my office have definitely improved. We are busy ( but not too busy to give you or a friend great service. If you or someone you know is interested in refinancing give me or my associate Daniel a call at 777-HOME (4663) before the opportunity gets away. It seems the economy is doing better and then it seems it isn't. No one knows what the future holds.