Showing posts from May, 2011

Appraisals: Why You Must Now Sell Your House Twice

Banks have become very conservative when lending mortgage money today. With the current foreclosure challenges in the country, we can’t really blame them. The requirements now necessary to qualify for mortgages have gotten much more stringent and it seems will get even more stringent as we move forward. The banks want to make sure the prospective buyer has the ability to repay the loan. However, this does not just involve the borrower buying the property.

The second way a bank can protect their investment in the mortgage is to make sure that the collateral backing that mortgage is secure. That is where the appraisal comes in. The bank wants to make sure that, should the buyer not be able to make their payments, the house they will be forced to take back will sell for an amount at least equal to the balance left on the mortgage. For that reason, the banks seem to be getting more conservative with appraisals also.

This past week, the National Association of Realtors (NAR) released their E…

National Housing Survey: What America Thinks

Each quarter, Fannie Mae releases their National Housing Survey. They survey the American public on a multitude of questions concerning today’s housing market. We like to pull out some of the findings we deem most interesting each time it is released. Here they are for the most recent report:

The Most Important Reasons to Buy a Home

When we talk about homeownership today, it seems that the financial aspects always jump to the front of the discussion. However, the study shows that the four major reasons a person buys a home have nothing to do with money. The top four reasons, in order, are:

1. It means having a good place to raise children and provide them with a good education
2. You have a physical structure where you and your family feel safe
3. It allows you to have more space for your family
4. It gives you control of what you do with your living space (renovations and updates)

The Home as an Investment

Though most people purchase a home for non-financial reasons, everyone realizes their …

Look Past the Headlines

Earlier this week, Trulia and RealtyTrac issued a press release regarding a survey completed for the two companies by Harris Interactive. The press release, American Expectations for Housing Market Recovery Falters , reported:

“As more cities across the nation experience double dips in home prices, more than half (54%) of U.S. adults believe recovery in the housing market will not happen until 2014 or later, according to the survey released today.”

And both organizations that commissioned the survey addressed the reasons Americans may feel this way:

Rick Sharga, SVP of RealtyTrac

“Our survey reflects a growing perception among potential homebuyers that the housing recovery is still a long way off. Demand remains weak, loans are increasingly difficult to qualify for, and the shadow inventory of several million distressed properties is weighing down the market. All of these things need to improve before housing can recover.”

Pete Flint, CEO of Trulia

“Most Americans, as our latest survey reve…

Even the Naysayers Are Saying To Buy Now!

Business School professors Eli Beracha of East Carolina University and Ken H. Johnson of Florida International University have done extensive research on which makes more sense financially: to rent or own a home. They published, Lessons from Over 30 Years of Buy versus Rent Decisions: Is the American Dream Always Wise? In their paper, the professors do not dispute the social benefits of homeownership:

“Home ownership is touted as the “American Dream”. It is credited with enhancing wealth, increasing civic pride, improving self-esteem, crime prevention, child development, and better educational outcomes, among other benefits. This paper does not dispute any of these claims.”

What the professors were proposing is that homeownership is not a better investment strategy than renting. The first of the two major findings was:

“After setting the holding period to the average American’s tenure in a residence, renting (not buying) proves to be the superior investment strategy over most of the stud…

Home For Sale in Colorado Springs

Home For Sale in Colorado Springs * Main Level Living at its Best * Tour This Home Today * Tons of Square Footage for Price * Backs to Walking Trail * Some TLC Needed * Perfect for the First Time Home Buyer or Move Up Buyer * 5 Bedrooms, 3 Bathrooms, 2 Car Garage and Nearly 4,000 Square Feet * Open Floor Plan Perfect for Entertaining * Perfectly Appointed Kitchen with Ample Cabinet & Counter Space and Eating Area * Spacious Great Room with Cozy Fireplace * Main Level Master with 5 PC Bath and Walk Out * Main Level Office * Finished Basement with Large Recreation Area, 3 Bedrooms and Bathroom * Lattice Covered Patio, Easy Access to Powers Corridor and More!

For More Information on this Home For Sale in Colorado Springs, Contact Mike MacGuire Today! If you are considering Relocating to Colorado Springs, Purchasing a Home for Sale in Colorado Springs, considering Selling a Home in Colorado Springs, or want more information on the Colorado Springs Real Estate Market, Contact your Color…

The 4 C's of Mortgage Underwriting

by Dean Hartman

With Spring upon us, and new buyers out looking for houses, I thought today might be a good time to review the basics of what lenders look for as they decide to approve (or deny) mortgage applications. For at least 25 years, I have heard them called “The 4 C’s of Underwriting”- Capacity, Credit, Cash, and Collateral. Guidelines and risk tolerances change, but the core criteria do not.


CAPACITY is the analysis of comparing a borrower’s income to their proposed debt. It considers the borrower’s ability to repay the mortgage. Lenders look at two calculations (we call ratios). The first is your Housing Ratio. It simply is the percentage of your proposed total mortgage payment (principal & interest, real estate taxes, homeowner’s insurance and, if applicable, flood insurance and mortgage insurance – like PMI or the FHA MIP) divided by your monthly, pre-tax income. A solid Housing Ratio (often called the front end ratio) would be 28% or less; although, many times l…

Move In Ready Home for Sale in Monument

Gorgeous Ranch Style Home For Sale in Colorado Springs/Monument Boasting 4 Bedrooms, 4 Bathrooms, 3 Car Garage and over 3,800 Square Feet. Tour This Home Today! Beautiful Hardwood Flooring throughout the main level. Large Office with French Door Access. Spacious Great Room with Surround Sound, Cozy Gas Fireplace, Built-Ins and Walk Out. The Formal Dining Room that is off of the Gourmet Kitchen is Perfect for Entertaining. The Perfectly Appointed Kitchen features Stainless Steel Appliances, Ample Cabinet and Counter Space and Breakfast Bar. There is a large eating area off of the kitchen with walk out to the composite deck. Unwind in the Main Level Master Retreat with Luxurious 5 Piece Bathroom, Walk In Closet and Juliet Balcony. The Finished Basement boasts a Large Family Room with Built-Ins, Surround Sound and Cozy Gas Fireplace. There are also 3 Additional Bedrooms, Full Bathroom and ¾ Bathroom in the basement. The Fully Landscaped Yard Features a Large Composite Deck with Rod Iron …

Beautiful Home For Sale in Monument

Move In Ready Tri-Level Home on Nearly 1 Acre with Upgrades thru-Out. Tour This Home Today! 3 Bedrooms, 2 Bathrooms, 3 Car Garage and 2,300 + Square Feet. Beautiful New Brazilian Teak Floors on Main Level. Spacious Living Room Perfect for entertaining. Stainless Steel Appliances in the Gourmet Kitchen with Granite Countertops and Ample Cabinet and Counter Space. Large Dining Area with Walk out to Expansive Redwood Decks. Unwind in the Upper Level Walk Out Master Bedroom. Remodeled Bathrooms with Black Granite Countertops, Custom Black Vanities and New Cultured Marble Shower in Master Bath. The Lower Level Boasts a Spacious Recreation Area and Wood Burning Stove. Newer Roof, Furnace and Hot Water Heater. Large Backyard with Invisible Fence System, Great Location, Near Santa Fe Trail & more!
For More Information on this Home For Sale in Colorado Springs, Contact Mike MacGuire Today! If you are considering Relocating to Colorado Springs, Purchasing a Home for Sale in Colorado Spring…