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.

Read below for a list of loan scenarios. It is definitely better to do a short sale than to just let your home go into foreclosure. Even if you have already been notified that the bank is going to foreclose there still may be time to sell your home and avoid the ramifications of a foreclosure on your credit report.

Conventional Fannie Mae: After only 2 years with an 80% LTV ratio (Loan to Home Value), 4 years with 90% LTV ratio and 7 years-LTV per eligibility chart. Foreclosure is a full 7 years from completion.

Conventional Freddie Mac: 4 years from completion of short sale. Again, if you foreclose you will be waiting 7 years!

FHA Loan: 3 years from completion date; however, FHA ML 09-52 states that FHA financing can be obtained in less than 3 years…if you’re lucky! Foreclosure on your credit means you have to wait 3 years!

VA Loan: 2 years from completion date, but if you weren’t late on your mortgage 12 months prior to your short sale you could be eligible sooner.

Jumbo Loans: 2-7 years following a short sale, but 5-7 years with a foreclosure!

If you are unsure of what type of loan you have, please contact me. I can help analyze your loan type and see if a short sale will help you.

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!

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.

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Bank Owned!

Beautiful walk-out rancher is ready for a new owner to enjoy all that it has to offer. This home sits on 2.5 acres in the trees. Private but close to highways for commuting. Over 5000 square feet of living space. Main level features huge master suite with fireplace. Two other bedrooms are also on the main level. Formal dining room and large open kitchen area are perfect for entertaining.

Large open family room has bar area plus big space for TV or gaming tables. Walkout to patio and enjoy the quiet sounds of the pines. This home has three gas fireplaces to take the chill off. The five large bedrooms and four baths will be perfect for those with a family or guests.

For a private showing, click here to contact me. I do not expect this property to last long on the market!

Outwit, Outlast, Outplay

If you are a fan of the TV show Survivor, then you know exactly how the game is played. The most successful contestants first form an alliance of other people to stay in the game. In the real estate game, you need an alliance as well. Step 1 is to assess where you are at in the market. If you are already a home owner, the first person to connect with is me! I am your source for all market information.

 Make a plan

Things change very quickly in the current market! You need a trusted advisor to help you make your game plan. Once we have made your plan we can go forward and invite other players to join our alliance. If you are selling your home, we need to decide what your long term goals are. Are you moving to another city or staying in town? Will you be buying another home or do you need to rent for a while. If you need to sell your house short (AKA short sale) we will need to ally with your current lender to get the transaction completed. If you want to sell your home with or without doing a short sale, we will need to ally with a new buyer. I will make sure that the buyer is qualified before even writing an offer to purchase your home. Lending guidelines are also changing frequently so this is a critical step in the process.

Win the challenges

If you want to win an immunity challenge, you might need skills in puzzle solving. This current market is a huge puzzle! This is where outwitting our opponent comes into play.  If you want to get top value for your home but still sell quickly, there are many things that we will have to do together in order to sell quickly. Your level of motivation for selling is the most critical piece of this puzzle. The game hopefully will end with you getting what you want–your home sold quickly at the highest possible value. Contact me to begin forming your alliance today!