1. Isn’t it just easier to rent than to buy?

I get this question a lot. Colorado Springs is very different from other duty stations you may have lived at. The area is large but really still small. That won’t make sense to you now but when you arrive you’ll get what I mean. We have really one county in our area (excluding the mountain communities). Finding a home takes (with a good Realtor of course) no more than a few days tops! The city is pretty spread out but once you decide on a price range and area amenities, we can narrow things down pretty fast. As a rule, I do not show rental properties. Finding a rental takes as long or longer since you have to set up the showings and then meet the owner or agent at each property.  If you are not familiar with the individual areas it could take a while and then you might find yourself in a one year lease in an area that you really do not like.

2. Is it difficult to get financing?

Not as difficult as you might think. The key is to get pre-approved prior to packing up at your current duty station. Bank statements, tax returns etc. are much easier to obtain prior to moving since you have quick and easy access to all of your personal data and records. When you arrive as a pre-approved buyer you will only need to find a property and get the appraisal done in order to close. Very simple!  Loan guidelines are very clear these days. The lender can tell you up front whether or not your credit and income levels meet those guidelines. It takes just a simple conversation with the lender to find this out.

3. Where will we live while we wait to close?

Again, if you have already been pre-approved the closing can happen quickly. In Colorado we do not do “Escrow” closings. We close and fund the transaction on the day of closing and you get the keys to your new home. We can close in a matter of a few weeks. It also may be a possibility that you can move into the property prior to closing and rent from the owner until the transaction is finalized. This won’t be possible if you are buying a bank-owned property but in that case it may be worth waiting for if the price is right! There are many possible places to live in a temporary situation in Colorado Springs. Our community is used to military personnel coming and going so we have extended stay hotels, temporary furnished apartments and of course you can also check out the base TLF or on post Guest House.

4. Do I have to have 20% down payment to buy a home now?

No! Conventional loans require a larger down payment but if you are military you most likely have the option of using your VA loan benefit. This options require ZERO down payment! Also, it is just a myth that you can only use your VA one time. It can be used multiple times with conditions. FHA is also a good option that only requires a down payment of 3.5%. Contact me so I can explain these loan programs in detail.

5. Do I have to make a separate house hunting trip in order to buy?

If time or finances did not permit an advance home buying trip do not despair. The process is just not that difficult. Lots of times we work with people who really thiought they would be renting a home. Once they viewed the selection of rentals in their monthly price range they change their minds and look into buying a home. We can adapt to this situation quickly. The key is to work quickly as far as submitting the loan paperwork. In a pinch you can obtain your LES and W-2 statements along with bank records by going online and printing them. Again, we are used to helping military people settle into their new homes quickly and with a low level of stress!

As you can see, buying a home might just be easier than you thought! Even if you are PCS’ing from overseas, we can help you find a great home! Contact us to get started.

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I contacted the listing agent to ask if there had been any previous testing done on the property. After she had quizzed the seller, the response was “They did not do any testing when they bought the house. Their inspector said that since the home had a walkout basement, there would be no radon issues.” When I got done laughing, I contacted the buyer and he ordered the tests.  Inspector Whitbeck did the test and guess what? The results came in at a level of 14.2 pCi/l. The EPA recommends that the level be no higher than 3.9 pCi/l.  As a result, the buyer requested that the seller install a radon mitigation system to lower the levels and provide safety for the new buyer and his family.

Having a walkout basement does not make any difference in whether or not a home has radon! Common sense and science tell us that if radon comes out of the soil, when a house is built on top of that soil, radon can get into the property through the floors or cracks in the floors. Some migt think that a walkout basement has more ventilation since it has a patio door instead of smaller windows. What difference would that make? None unless you left the door open 24/7.  Duh! Whoever that inspector was that told the seller this should be the one who pays for this new system! This was a costly problem for that seller!

I always recommend that my clients educate themselves on radon and it’s dangers. While there are many arguments on radon and if it is really a problem, the fact is that if you have it in your home and decide to sell, you may have to pay the cost (around $1000-1500) to install a mitigation system. Better to test and ask the home seller to foot the bill than to not test and have to pay later!

Worried about radon or other home inspection issues? Call me at 719-264-7777 so we can address all of your questions.

As of September 30,2011 the new FHA loan limits will be going down. Please remember though that this means the loan limit and not the sales price. FHA requires at least a 3.5% down payment on every loan. For a single family home in El Paso county, the new FHA loan limit will be $271,050 instead of the current $325000. I personally do not see this as a problem in the Colorado Springs area.

 FHA is meant to be a program to assist first time buyers get into a home with a minimal down payment. In our market you can find nice homes under 275K.  We also are an area where a larger percentage of the first time buyers are using their VA mortgage benefit. There are many more FHA mortgages being written these days but I do not expect the new changes to have a big impact.

If you are thinking about buying a home in the near future, contact me so we can talk about your options. The FHA rate today is hovering around 3.75% depending on credit score and a few other factors. This is a great rate! VA rates are in a simlar range. We are at the point now where buying a home is becoming less expensive than renting one. This might just be the time to take the plunge and become a home owner!

During the processing of your loan there are certain things to keep in mind that may impact your loan transaction. During the loan approval process, your credit history, income and assets are verified for the initial approval and oftentimes just before your loan closing.  So, to help ensure closing, you may want to consider the following:

 “Do”

1. Tell your loan officer of all debts or liabilities

2. Keep credit accounts current such as existing mortgages, car payments and credit cards

3.Contact your loan officer before changing jobs, quitting yourjob, or becoming self-employed

4. Retain copies of all paycheck stubs and any statements onbills being paid off during the loan process

“Don’t”

1. Authorize any inquires into your credit–that is, don’t applyfor any financing including charge cards, furniture,appliances, vehicles, boats, cell phones, cable, alarmcompanies, charge a large amount on existing credit cards, orstart any home improvements which require you to opencredit.

2. Incur any additional debts, including increases in credit card balances

3.Close any open accounts

4.Co-sign a loan for anyone

5. Sign up with any credit repair or “consolidation” company

6. Spend money you have set aside for closing

7.Make large account deposits outside of payroll or gift funds

Guest blogger: Rose M. Kelly
Mortgage ConsultantNMLSR ID10326
Professional Mortgage Associates, LLC | 1740 Chapel Hills Drive | Colorado Springs, CO 80920
MAC M1449-011
Phone 719.388.2412| Cell 719.650.8228

By Guest Blogger Rose Kelly

 If you are in a place where you want to buy a home, now may be the right time to start thinking about it. The banks and government are simply overwhelmed with homes that have been repossessed, and it looks like there might be as many as 2 million more homes to come onto the market. Prices in many areas are going to continue to fall, and if you can get credit, mortgage rates are quite low.  You want to meet agents or bankers who are in the “deal flow.” The anecdotal stories of people getting homes for what seem like very good prices, in this depressed market, are all over the internet. There are homes that are certainly below replacement costs in some areas (and not just in the US but in certain parts of Europe as well). While I think home prices should go somewhat lower, we are out of bubble territory. There are starting to be values in the housing market for savvy shoppers. Which of course is what help creates a bottom which I have been writing for many years should happen in 2012-13. So you can be patient, but if you want a home, put in a bid that will make you smile if you get it accepted. No rush. And there are certainly deals for people who can use a little leverage and buy rental property.

Call or email me if you are ready to start the process! I can offer you a free assessment of your mortgage loan options, rates and qualifying options. I look forward to talking with you soon. The market waters are fine-let’s go for a swim!

Rose Kelly

Mortgage Consultant

Professional Mortgage Associates, LLC | 1740 Chapel Hills Drive | Colorado Springs, CO 80920
MAC M1449-011
Phone 719.388.2412| Cell 719.650.8228

rose.m.kelly@promtgassoc.com

1. Consult with a Realtor to talk about the process

Call or email me to talk about the home buying process. From there we will make a plan to decide where you want to live, how much you want to spend and when you want to move into your new home. There are many things to consider such as commute times, schools, loan options etc. I can help you sort through all of these things.

2. Get a Mortgage Pre-Approval

It is necessary to speak with a qualified mortgage specialist to understand what type of loan might work best for you. There are great programs available with FHA, VA and Convention. FHA requires a very small down payment of only 3.5% and VA requires zero down! Conventional loans have larger down payments. Interest rates and terms are great right now. We recommend Susan Hodges-Hill of Wells Fargo Home Mortgage. Click here to contact her for a free consultation in person, via phone or email.

3. Begin your home search

Search the listings available on the eSaleHomes.com site.  Our site shows every residential listing available in the MLS and is updated with real time data. This means that you have the power of the MLS behind you. Choose your favorites and we will spend time previewing the homes in person. If you are too busy or out of town, I am happy to preview the homes and email video or digital photos of the homes to you. Typically it will take two to three full days of viewing homes to find one that meets your needs. The internet has allowed our clients to get a good idea of what they like and don’t like prior to meeting us. We are highly skilled at using technology to help make your search an easy one!

4. Make an Offer

Once you have found “the one” we can sit down and discuss the price and terms that you want to submit to the seller in your offer. You will need to have a pre-qualification letter from your lender to send to the seller with the offer. Terms that you will negotiate include: price, inspection dates, closing costs paid by seller and closing date. It takes a day or two to finalize the offer details and then you have a contract.

5. Get a Home Inspection

We strongly recommend that you hire a professional home inspector to evaluate the property. There are issues to consider such as structural, systems and radon. A qualified home inspector will be the best one to inspect the home and make any recommendations for repairs.

6. Apply for the Mortgage

When the contract has been accepted, you will need to begin submitting your documentation to the lender. This will include things like W-2 employment forms, tax returns, financial statements etc. The lender will give you a checklist to follow that makes it very easy to know what you need to gather from home and then submit.

7. Review All Disclosures

The seller of the home will provide several disclosures to you at the time of the contract. These will include the Seller’s Property Disclosure, Square Footage Disclosure and others. I will assist you with the interpretation of each of the disclosures so that you know exactly what you need to know about the property.

8. Order the Appraisal

The appraisal is ordered by the lender on behalf of the buyer. The appraiser will visit the property, make their measurements and take photos. They then return to their office to review the data that will determine the appraised value. An FHA or VA appraiser will make a quick overview of the property but they do not perform a full inspection. This is a common misconception that buyers have. The appraiser does NOT inspect! They really are just making sure that the home meets certain lender guidelines as far as condition is concerned.

9. Obtain Final Loan Approval

Once everything had been submitted to the lender, they will send your file to the underwriter for final approval. The underwriter makes sure that all of the documents are in place and will then approve the loan. Once this is done you are ready for the final step!

10. Closing!!

When the loan has been approved you are ready to close on the property. In Colorado the closings are signed and funded all in the same day. We do not have an escrow period. We will receive notification of how much money (if any) that you need to bring to closing hopefully at leasdt a day or so prior to the closing date. You will need to obtain a certified check from your bank or send funds via wire transfer to the title company account in order to close the transaction. The signing will take approxamately one hour and then you will be given the keys to your new home!

It Can Be Easy If You Have The Right Agent!

Buying a home should be a fun process! Your home is usually your biggest investment. I have over 20 years of experience in helping people buy their first home. I have seen nearly every situation that you can imagine. I have sharp negotiating skills that will help you get the best price and terms in the contract. I also have the tools needed to get you through the sometimes stressful loan process. It pays to have an advocate to walk you through every step of the way. The key is to contact me so that we can get started!

Buyers may receive a “gift” for their down payment from anyone. This one is tricky since the lender requires that the gift funds be verified though bank statements or other official means. If you have someone who is planning to give you a gift, it is a good idea to wait until you start the loan process to accept it. This way the trail is much easier to follow.

FHA loans have no pre-payment penalty. You can pay the loan off at anytime without an extra cost. There is also the ability to finance the mortgage insurance premium (MIP) upfront. The MIP is the insurance premium charged against the possibility of default. This amount can be financed into the mortgage.

The FHA loan limit for homes in El Paso county is $325,000. There are plenty of wonderful properties available in our area that meet the price guideline. If you have been thinking of buying a home but have been unsure about how to begin the process, please contact me. I can refer you to one of our preferred FHA lenders for a conversation about the strong benefits of this financing program. Why wait? Interest rates are still very low. Get started now and enjoy your new home in a few weeks.

The VA loan benefit for military service members is one of the best benefits available! Many people hesitate to use their VA loan benefit thinking that it is difficult or can only be used once in a lifetime. Not true on both accounts! Read on below for details on buying a home with a VA loan.

Purchase with $0 Down

A VA Loan is one of the only loan programs that still allows the borrower to finance 100% of the home’s value and purchase with $0 down. Now more than ever banks are requiring large down payments for conventional loans. In most cases they require a substantial down payment making it difficult for some buyers to get into their first home

Lower Your Monthly Payment

A VA Loan offers several benefits that will help to lower your monthly payment. PMI, or private mortgage insurance is not required on a VA loan. PMI is an added monthly premium (cost) required for conventional loans where the borrower finances more than 80% of the home’s value.

Getting Qualified is Easy!

The qualification guidelines are less stringent for VA Loans. Because the loan is backed by the government, lenders have relaxed the often strict lending rules for VA Loan applicants making them easier to obtain.

It can be re-used

Your VA loan benefit can be used multiple times. The only change will be in the funding fee that is charged by the lender each time that you use the benefit. Keep in mind that you must be planning to occupy the home as your primary residence at the beginning of the loan period. you can certainly rent the home out later if you need to PCS or move to another city but still want to keep the home.

For more loan information, contact me so I can put you in touch with one of our preferred lenders. VA mortgage rates are low right now. It’s a great time to buy a home in Colorado Springs!

The benefit of today’s technology allows buyers to preview homes online. When I started in real estate in 1990, we used the old MLS books that were published every two weeks. If a buyer was relocating into Colorado Springs, I had to cut out the individual listings and place a bunch on the copy machine, make a copy and then mail the sheet to a buyer. The MLS book only showed a photo and a few details about each home for sale. We’ve come a long way since then!

Currently there are more MLS feeds than I can count. The feeds grab home listing info from the local MLS and publish it in the preferred format of the site. Each feed, including the MLS allows an agent to submit a group of interior photos of the home. This is great for buyers looking at basic layout of a home along with the interior condition.

Photo shock happens to buyers who pick out a list of favorite homes from their MLS feed but then view the home in person. I have had clients in the past who have loved a particular home for months prior to their arrival in town only to be greatly disappointed when they see the home. A photo cannot tell you that the house smells like cats! A photo cannot tell you that there is a roar of traffic all day every day. A photo cannot tell you that the carpet is really worn out.

There is a solution to all of this. First, if you plan to be moving to Colorado Springs in the near future, contact me. I will then listen to your list of requirements and set up a FREE personalized web page giving you direct access to all MLS listings that will interest you. You select your favorites and delete the homes you do not like. Before you arrive, I can actually go to the homes you like and preview them. Then I can video the ones that are good and help you delete the ones that have problems. Why would any buyer want to spend their precious time viewing homes that are awful? Let me do the leg work for you. Nothing is worse than staying in the TLF and going out to view an endless list of homes every day. Many real estate agents will make you do just that. When I have time to talk with you prior to your move, I can help you narrow down the list of homes. This will allow you to move in quicker and with less stress during the move!

I’ve spent time in the TLF’s and trust me, it is not a vacation. The units are small and as we all know, you can’t stay long. Every day counts! Contact me today to start your MLS search. I’ll help you have a smoother move than you could ever have imagined!