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.

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.

Common Question

Can you rent out a home that has a VA mortgage on it? Yes, with certain conditions. VA loans are given only to Veterans who plan to occupy the home as their principle residence. This means that you cannot use your VA loan benefit to buy a home to fix and flip or to rent out as an investment property in the first place.  As a side note, I have never known how VA will monitor this but you don’t want to be the guy doing it on the day they implement their nationwide occupancy check program! I suspect that they may do spot checks using utility records, insurance policy checks or other methods. Again though, keep in mind that VA is a goverment agency so all bets are off where compliance is concerned.

If you find yourself in a situation where you have been living in your home for a while and get PCS orders, you may want to consider finding a renter for your home. Lots of military people who own homes in Colorado Springs choose to do this. They may be planning to come back here for retirement or simply want to keep the property as an investment. I had an Air Force client a few years ago who bought a property at each of his duty stations, to include England, and then rented them out when he PCS’d. Owning an investment property has certain tax consequences (good and potentially bad) so you need to seek out the advice of a qualified tax professional on this subject, primarily before selling a property that you have been renting out for a while.

Lots of people do not buy a home when they move to Colorado Springs for many different reasons. Maybe they already own a home in another location. Possibly they have a few dings on their credit that will prevent them from buying but they are well able to pay their rent each month. Maybe they are here with the Canadian military and they can’t buy but their government pays the rent. They make excellent tenants. I have several clients who rent their homes out to other military personnel and they have success without even hiring a property manager. This is easier in certain price ranges than others. It all depends on the kind of property you have to rent out.

Bottom line here: the answer is yes, you can rent out a home with a VA loan! Just be sure to do it for the right reasons and you will be fine. For more info on this subject, contact me. I can assist you with buying a home or planning to rent one out. You may also need to evaluate your potential rent amount which might help make the decision in the first place. I am here to help-just call me at 719-264-7777.

When a security freeze is added to your credit report, all third parties whose access is not exempt under law will not be able to access your credit report without your consent. If you have been a victim of identity theft this service is highly recommended.This is a free service in all states if you have been a victim of identity theft. Inother states the cost is $10-$15. There is not charge in Colorado to initiallyfreeze your file for victims and non-victims of identity theft. Once you have ordered a security freeze there are still some agencies that can have access to your credit file:

• Companies you have a current financial relationship with.

• State, local law enforcement agencies, child support agencies.

• Governmental agencies

• Uses falling under the FCRA-disclosure to the FBI for counterintelligence.

• Credit monitoring services that the consumer has subscribed to.

Please note: Placing a security freeze on your credit file can delay the processing/acceptance of credit applications for a mortgage, auto, credit card, etc. as the freeze will have to be lifted in order for your credit to be pulled. Please plan accordingly if you are planning on submitting an application for credit so that your credit file can be accessed. Each bureau has different criteria for requesting a security freeze.

For Equifax:

Equifax Security Freeze

PO Box 105788

Atlanta, GA 30348

www.equifax.com or

https://www.freeze.equifax.com/Freeze/jsp/SFF_PersonalIDInfo.jsp

You can put a freeze on your file with Equifax either by mail or online through the above link. If you choose to request by mail you must include your name, address, date of birth, social security number, and proof of current address such as a utility bill. Once they receive the request they will mail you a confirmation with a 10 digit security freeze confirmation number. You must have this number to request a lift of the freeze. If you are a victim of identity theft you much also include a copy of the police report or identity theft report. Lifting a freeze from Equifax must also be done by mail.

For Experian:

Experian

PO Box 9554

Allen, TX 75013

www.experian.com or

https://www.experian.com/consumer/cac/InvalidateSession.do?code=FREEZEC

ENTER

You can put a freeze on your file with Experian either by mail or online through the above link. If you choose to request by mail you must include your full name with middle initial and any generation (Jr., Sr, etc), Social Security number, date of birth,current address and previous address (if less than 2 years). You must also enclose one copy of a government issued ID and proof of address (utility bill, bank or insurance statement). They will mail you a confirmation and an access code to lift your freeze. You can order a temporary or permanent lift either by mail or on line.

For Trans Union:

Trans Union

Fraud Victim Assistance Department

PO Box 6790

Fullerton, CA 92834

www.transunion.com or

http://www.transunion.com/corporate/personal/fraudIdentityTheft/fraudPrevention/securityFreeze.page

You can freeze your file with Trans Union either by mail, online through the above link, or by phone 888-909-8872. If you choose to request the lift by mail you must provide proof of your current residence such as a copy of a state issued identification card of valid driver’s license.

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

The 2011 CSAP Reading scores have been posted and there was a statewide increase in the number of students who are proficient in their reading. For 2010 the number was 70% and this year it increased to 73%. Good news for many districts but not all of the districts located in the Colorado Springs metro area were able to show the same results.Several districts in our area showed a slight decrease or had the same results as last year. Is this a problem? I don’t think so. In my opinion it is best to review all of the scores on a school by school basis. Then you might want to investigate the demographic makeup of each school. For instance, does the school have a high percentage of students who are fluent in Spanish but not English? This could definitely affect the ability of a child to read well on the CSAP test. To view all of the scores for each district and elementary school click here

Not bad really!

The traffic issues in Colorado Springs are minute as compared to other metro areas across the country! I drive several thousand miles per month in town and in Denver. Believe me, we do not have a traffic problem!

Every morning and afternoon the flow of cars is obviously heavier on I-25 than it is during the rest of the day. Heading south into town from the USAFA area around 630 am takes me about 30 minutes to get to downtown. Sometimes when the roads are a bit snowy or icy it will take a little longer. Typically the traffic seems to be what we in Colorado Springs call “bad” on a Friday afternoon. The slowdowns occur at their worst from the Woodman Road exit on I-25 to the Baptist Road exit heading north. Beyond that, its just not a big problem. Those that have moved here from other parts of the county laugh at the idea of what we call traffic!

Why should we care? We’ll most people don’t give this much thought. It will be very important when you are selecting your home in Colorado Springs. If you work at Fort Carson but want to live in the Powers area (zips 80922, 80923, 80917) you need to know how long it will take to get to work. Lots of people want to live in a certain school district. Again, working at Fort Carson and educating your kids in School District 20 will cost you 40 minutes each way in commuting time.

The biggest traffic issues seem to arise with east-west driving in Colorado Springs. We don’t have a highway going that direction. We do not have a loop off of the highway like many cities have. This means lots of un-timed stop lights and extra driving time. This might come into play if you want to live on the west side of town near hiking and biking trails but work at Peterson AFB or Schriever AFB. Plan on a 30-40 minute drive from the West and Northwest areas (80904,80919) to Peterson AFB.

Lots of people live in Colorado Springs and work to Denver. The drive is not bad at all if you live in the northern part of the city or in Monument (80921,80920,80132). I take classes at University of Denver and commute from 80921 area.  My drive is a total of 50 minutes one way from my house to the college which is located mid-way into the city. Housing can be less expensive and quality of life might be better in Colorado Springs so many people choose to make the drive each day.

If you want to take a look at the local traffic cams, click here. This will give you an idea of what to expect at major routes through the city. If you have questions about where to live, feel free to contact me. I can point you in the right direction when it comes to living and driving in Colorado Springs!

All New Interior!

This upscale remodel will put a smile on your face the minute you enter the front door! Imagine moving into a brand new home. This is the one! Over 1800 square feet. All new carpet, interior paint and upscale lighting. The kitchen is a cooks dream with brand new stainless appliances, slab granite counters and upgraded cabinetry. Euro style faucets and lighting complete the look.

Large living room upstairs plus spacious family room in the lower level allow plenty of room for entertaining and relaxing. Four bedrooms offer plenty of sleeping space. Both bathrooms have all new tile, fixtures and upscale vanities.

Brand new energy efficient furnace and water heater have been installed in the past few weeks. You’ll enjoy lowered utility costs with the exterior vinyl siding and newer vinyl windows.

Outdoor living is a breeze on the covered deck. Enjoy the view from the gazebo while you have a drink and relax! This home is only a short walk to the middle school and shopping. Very short drive to Fort Carson and Peterson AFB. Why wait any longer? For your private showing, contact us today!

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!