Good News!!!

The Veteran's Administration is lowering the VA funding fee October 1st 2011.

Effective Change Date: VA Loans Funded after September 30, 2011
Loan Type	Veteran Type	Down Payment	First Time Use		Subsequent Use
			Current	New	Current	New
Purchase	Regular Military	None 5% (up to 10%) 10% or more	2.15% 1.50% 1.25%	1.40% 0.75% 0.50%	3.30% 1.50% 1.25%	2.80% 0.75% 0.50%
Purchase	Reserves/ National Guard	None 5% (up to 10%) 10% or more	2.40% 1.75% 1.50%	1.65% 1.00% 0.75%	3.30% 1.75% 1.50%	2.80% 1.00% 0.75%
Cash-Out Refinance	Regular Military	Not Applicable	2.15%	1.40%	3.30%	2.80%
Cash-Out Refinance	Reserves/ National Guard	Not Applicable	2.40%	1.65%	3.30%	2.80%

Jumping into the real estate market

People ask, "When should I buy my first home?" Anytime is a good time to purchase your first home, if you have the services of a great Realtor! A good Realtor knows the market and what homes are the best values. You  have to have a place to live which is an expense whether you rent or own a home.
There are tax advantages to owning a home and as long as it is within your budget and you plan to live there for at least 7 years it is a safe bet you will have made a wise investment.

Contest

The first person to correctly identify this picture will win a gift card.

The news of the week

Business is picking up in the Triangle.

Spring is here and buyers are coming out to look at properties. The best agents have their buyers come into the office and meet with them to discuss their wants and needs in a home as well as in an agent. Some of the other questions Realtors ask is what is your timeframe for purchasing? Have you been pre approved?

Even if you have a new client who has been pre approved elsewhere it doesn't hurt to get a second opinion from a mortgage banker like Towne Mortgage. In many cases we can save your client money and provide exceptional service. The most successful Realtors in this business direct and manage their clients and are rewarded for it with referrals and repeat business.

Home Path Special Financing

There is a special loan program available for Fannie Mae foreclosure homes. You can find these homes on the Fannie website, http://www.fanniemae.com/ . There are hundreds of homes listed on the site. Towne Mortgage of the Carolinas handles the HomePath financing without the rehabilitation loan. The highlight of this loan program is there is only  3% down required and there is no mortgage insurance required. There is also an investor program that allows for 15% down and no mortgage insurance for investors. No appraisal is required either. This isn't for everyone but it might fit your buyer.

The First Question You Should Ask Your Listing Agent

What is the most important thing a seller should look for when hiring a real estate agent to sell their house? We are often asked this question. Is it the size of the company they are licensed with? Is it their marketing program? Their years experience in the business? Should you choose the agent who suggests the highest listing price?
There are many things that should be taken into consideration when hiring someone and giving them the responsibility for selling your home. In our opinion, the most important question you can ask a potential listing agent is a simple one:

Do you truly believe that now is a good time to buy a home?

Why should this matter when hiring someone to SELL your home? Buyers are nervous about purchasing right now. They want to know they are making an intelligent choice. We believe, especially in today’s market, you need to hire someone who realizes that this is one of the best times in American real estate history to buy. If an agent doesn’t believe that, how will they be able to convince a potential buyer to buy your home?
When interviewing a real estate professional, ask them to explain why purchasing a home makes sense today. They should be able to explain it simply and effectively. See how many of the following facts (which should be shared with every potential purchaser) the agent knows:
The Wall Street Journal last week stated:
“With home sales starting to improve, and with prices now possibly forming a bottom, real estate could well be the asset class that represents the best low-risk buying opportunity out there today.”
Donald Trump was just quoted saying:
“I’m pretty sure this is a great time to go out and buy a house. And if you do, in 10 years you’re going to look back and say, ‘You know, I‘m glad I listened to Donald Trump’.”
John Paulson, a multibillionaire hedge fund operator and the investment genius who made a killing betting against housing a few years ago, is now bullish on residential real estate market. He recently said:
“If you don’t own a home, buy one. If you own one home, buy another one. If you own two homes, buy a third. And, lend your relatives the money to buy a home.”
A recent Gallup Poll showed that 67% of American’s think that now is a ‘good time’ to buy a home. The Gallup Organization went on to say:
“Overall, there is good reason for most Americans to think now is a good time to buy a house. Interest rates remain near historic lows. Home prices are down sharply, providing many incredible buys.”
The iconic financial paper in this country, the country’s most famous real estate investor, the most successful prognosticator of the housing market and 2/3 of all Americans say now is the time to buy a home. Shouldn’t your agent agree?

Bottom Line

Selling is nothing more than the transference of conviction. How can agents transfer that conviction if they themselves are not convinced? Find a listing agent who truly believes that someone should buy your home – TODAY! This is the single most important thing you should look for in a potential listing agent.

Be prepared

Just like the Boy Scouts you need to be a prepared  Buyers today must start with the pre approval process before they look at a home. I know that we have said this for years but with the new contracts this is a must.
The more work we do upfront the smoother the process for everyone.
I am happy to meet with your prosective clients in the very beginning of the home purchase process. I wil have them bring all of the documentation that will be needed for a mortgage. I can input all of the information and get a determination from Fannie Mae while the buyers are waiting. Depending on that information we can then take it a step further and have an underwriter review the documents also.
With gas prices climbing wouldn't you rather have me do the leg work upfront before you drive someone around?