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.

This is a common question that I hear all the time. There is no simple answer. The thing to know first is that if you miss a payment, the bank is not going to foreclose immediately.  Foreclosure is a lengthy process and costs lenders a lot of money so they don’t want to have to foreclose on their borrowers. If you act quickly, you will have time to make an informed decision.

Can I make a partial payment?

No! It’s all or nothing with your monthly payment. Banks will not accept a partial payment and they most likely will send back your check uncashes.

The key is to be proactive in avoiding foreclosure if you think you can’t make your payments. Many people are faced with job losses, illness or family emergencies that cause financial hardship. First of all know that you are not alone.  We specialize in working with home owners who are in a place where making payments is a real problem.

What are the options?

First it is good to sit down with a real estate professional (notice that I said professional ) to discuss your unique situation.  My concern is that there are so many vultures running amok in this market that will take advantage of unsuspecting home owners in distress.  They will offer to buy your home and close immediately. I ran across a couple the other day that told me that they are not about “the money” but really concerned about  “the people”. Really? Real estate is my business. I do not buy homes from owners in distress. I will give you counsel and offer options. That’s all. No weird lease-options, seller buy back or money back (illegal) options. Be very careful! Contact me right away so I can advise you in a professional and discrete manner.

Tomorrow…

Loan Mod or Short Sale?

What is a Deed in Lieu?

When a homeowner is facing true hardship and does not want to go through the entire official foreclosure process, an option called a “Deed in Lieu” is available in some circumstances.  This option may have a lesser impact on your future credit than a full-blown foreclosure. Depending on your situation,  this can be an option.

There are certain criteria that need to be met in order for the lender/bank to approve a Deed in Lieu. We’ve all heard stories of homeowners just mailing the keys back to the bank but I don’t recommend that procdure! Banks don’t just accept the keys and wipe the slate clean. The Deed in Lieu has to be approved by the lender in order to be complete. Mailing the keys back does nothing and who knows who gets the keys and what they do with them.

There are several criteria that might qualify a homeowner for the Deed In Lieu option.

• You are unable to afford your current mortgage
• You are unable to modify your current mortgage to an affordable payment
• You have tried unsuccessfuly to sell your property using a short sale
• You are facing foreclosure and want to minimize the impact on your credit
•  True Hardship-job loss, divorce, medical emergency

Doing a Deed in Lieu will impact your credit and will be reported to the credit bureaus. The reports will show that the loan was in the default stage and that you did the Deed in Lieu of foreclosure.  This will still stigmatize your credit report. This option should only be considered after trying to do a loan modification or a short sale with the latter being the most likely option to resolve your situation.

 How do lenders determine who is approved for a credit card, mortgage, or car loan?  Why are some individuals flooded with credit card offers while others get turned down routinely?  Because creditors keep their evaluation standards secret, it is difficult to know just how to improve your credit rating. It is important, however, to understand the factors and to review your credit report periodically for any irregularities, omissions, or errors. Reviewing your credit report annually can help you protect your credit rating from fraud and ensure its accuracy.

Credit Evaluation Factors

Many factors determine your credit.

Here are some of the major factors considered:

Age

 Residence

“Authorized user”

payment history

 Bankruptcy Charge-offs (Forgiven debt)

 Child support

 Closed accounts and inactive accounts

 Payment history

 Installment loans

 Collection accounts

 Credit limits

Department store accounts

Finance company credit cards

 Mortgages

Major credit cards

Fraud Inquiries

Obtaining Your Credit Reports

Credit reports are records of consumers’ bill-paying habits. Credit reports are also called credit records, credit files, and credit histories and are collected, stored, and sold by three credit bureaus, Experian, Equifax, and TransUnion.Recent changes to the Fair Credit Reporting Act (FCRA) require that each of the three credit bureaus provide you with a free copy of your credit report, at your request, every 12 months. If you have been denied credit or believe you’ve been denied employment or insurance because of your credit report, you can request that the credit bureau involved provide you with a free copy of your credit report – but you must request it within 60 days of receiving the notification.

Disputing Errors in Your Credit File

The Fair Credit Reporting Act (FCRA) protects consumers in the case of inaccurate or incomplete information in credit files. The FCRA requires credit bureaus to investigate and correct any errors in your file.Tip: If you find any incorrect or incomplete information in your file, write to the credit bureau and ask them to investigate the information. Under the FCRA, they have about thirty days to contact the creditor and find out whether the information is correct. If not, it will be deleted.

For more information or to talk with a mortgage lender, contact me here or call 719-264-7777

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FHA and VA financing are offered on this home so buyers can close with minimal or no down payment.  This home just needs a new owner to add personal touches and a bit of TLC to make it perfect. Contact me for your private showing.

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.

Your home is overpriced

Buyers are very tuned into local market conditions. They know all about your competition and based on the many internet data systems that show current home values (correct or not), they know what they need to pay for a home. These buyers now control the market. They determine your home’s value. Realtors can come up with comparable sales to justify a value but that does not mean that buyers will pay that price. You can ask for the moon and set your listing price well above comparable properties in your neighborhood, but at some point it will be up to you, the seller, to accept what the buyer thinks your home is worth. Once the price is set, we need to monitor it closely.

Most real estate agents, and hence most qualified buyers, will see your listing in the first 30 days on the market. If the initial price is too high by as little as 5%, it will be duly noted and interest in your property will fizzle. You likely already priced out buyers who might have qualified for financing at a more reasonable price. Even if you manage to find a buyer at your inflated asking price, the property may not appraise at that figure and the financing will fall apart.

An overpriced house is like an overpriced sweater in a store at the mall. It becomes shopworn if it has been hanging there more than a few weeks. People overlook it and buy the newer inventory. Fresh pricing is a key part of the home selling process!

Staging is a must!

Today’s marketplace is competitive. Imagine that you are a buyer. Do you want to view homes that are dark and cluttered? No way! Buyers will stay much longer in a home that has been professionally staged for showings. Give your home a makeover and do it now! If you want to compete, you have to show an effort. New paint, carpet and a good cleaning can go a long way to help buyers take an interest in the property.

 You’re in a bad location

We all know the phrase “location, location, location.” The fact is that it’s true. Your location can’t be changed. If your home is on a busy street, reduce the price. If your home backs to apartments or a busy shopping area lower the price. If you are in one of the less popular school districts, price will be affected. The point is, location rules in real estate.

If your home’s location is less than desirable, your options are somewhat limited. You certainly can’t change your location but you might be able to do a bit of landscaping to help hide the problem. The key is to do the landscaping early. Trees don’t grow overnight. Plan ahead for best returns. The best way to compensate for a poor location is to reduce your asking price.

You chose the wrong listing agent

Sorry that this happened but it is common. Some agents will take a listing at any price just to have a sign in a yard. Some agents just put the house in the MLS and nothing else.  Again, the rules have changed. You need to make sure that you have a proactive Realtor with a high-tech marketing campaign. Also make sure your agent has a good reputation in the area. I try very hard to establish good relationships with my fellow agents. After all, they are really my biggest customers 

You have no ongoing marketing for your home

In this day and age, most home marketing is done online. We use a variety of channels to market our listings. Our listings are marketed using a combination of many portals such as YouTube, Twitter and Facebook. Our web site shows a page describing your home. Google instantly indexes our site to show all of our listings within minutes of them being posted. We have gotten very creative with ways to get the eyes of buyers on your home.  We can’t afford to just sit back and wait for something to happen!

Take action now! 

If you would like to talk to us about why your home is not selling or if you have not yet listed with an agent and want to make sure that your home does sell, contact us. We would love to help you achieve success!

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

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