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Here are current mortgage rates for the Denver Metropolitan area. These rates change constantly, so they are subject to change. I will post new rate information if these figures increase, or decrease dramatically.

Conventional 30 year fixed: 6.25% up from 5.875% last week

FHA/VA 30 year fixed: 6.125 up from 5.875% last week

5 year interest only ARM: 5.5% up from 5.375% last week

Jumbo 30 year Fixed: 8.125% (OUCH!)

We actually have some news this week. Mortgage Bonds have made a decisive cross below the 200 day moving average, which is a STRONG indication of rising rates. Barring a quick reversal of the bond markets, we will most certainly continue to see a rise in mortgage rates. Stay Tuned!

If you have any questions about mortgages, or how to lock in a rate, please contact us at any time.

photo credit: kevindooley

photo credit: cioproject

I’m witnessing an interesting trend. Investment property opportunities are much tougher to come by than only a couple months ago!

Earlier this year, we were finding 2-3 properties per week that would meet our “Great Deal” or “Wholesale” criteria. That is, a property available for purchase at a price that was at least 20% below pre-2005 values.

Its been over 3 weeks since one of these deals has surfaced. Additionally, HUD owned home are tougher to find. For example, there are only 2 HUD homes in all of Douglas County. Only 4 months ago, there was 15-20.

The take away is, as an investor or first time buyer, all new “Wholesale” deals will be scooped up quickly. As the market continues to improve, these deals will become more scarce, and you will likely face competition to be the high bidder.

We will continue to comb the market for extraordinary deals for our clients, but if you are thinking of about this kind of purchase, be prepared. Only the most qualified, and quickest to act will win!

The National Association of Realtors (NAR) and the Department of Justice (DOJ) have just settled a drawn out and expensive legal battle.  The result isn’t what’s news worthy.  The reason being is that is was pretty much a big waste of money.

The lawsuit brought by the DOJ was initially done so to force the NAR to allow greater access of listing content on the internet.  They somehow thought the NAR was limiting competition by withholding listing data from “Online” brokers.  Well as things have it, competition and technology kind of worked out the problems before the court system and the litigators could get their arms around this baby.

The bottom line is what was being fought for by the DOJ would have been accomplished without the pricey litigation.  Their premise of needing more competition in Real Estate is faulty.  It is certainly one of the more competitive industries, trust me I know!

On the other side, the NAR, of which I’m a member, isn’t always the most forward thinking, and should probably be monitored a bit.  They have in the past tried to keep information under lock and key (ie MLS systems) but now that information is widely available to the everyone.  The reason isn’t because of forced litigation, but rather the members of the NAR have demanded it for the benefit of their clients.  The market place is a very efficient in the real estate world!   

Anyway, the lawsuit is over, the attorney fees have stopped (I hope) and I’ll continue with business as usual.

Here are some great comments about this issue if you would like to read some other points of view.  Make sure and read the comments as that is where the real value lies.   http://agentgenius.com/?p=2005

Preparing your home to sell can certainly be a daunting task, and most sellers don’t know where to start. I suggest you start where your buyers will start, with a first impression. It’s difficult to be objective about your own home, but there are some tricks you can try.

Jump in your car, and drive to an entrance to your neighborhood. Try to imagine that you are buyers considering purchasing a home there. Drive through the neighborhood, and take note of the conditions of all the homes, not just the ones that are for sale. What are the features of the homes you find most attractive? What makes some of the homes less appealing?

After you have figured out the components of good curb appeal, drive by your own home, and continue down the street. Then, drive by it from the other direction. How does your home compare? Are there changes that could be made to improve that “first impression?” Perhaps there is too much overgrown landscaping, or the yard is too bare? Is the exterior color attractive, and does the home look well-maintained?

I had a staging client who was instructed to change the mint green exterior of their home. They weren’t sure what color to paint it, and it’s so difficult to choose from a small color swatch. I suggested they tour areas of similarly priced homes, and decide what colors they found to be the most popular and the most attractive. The result, when they painted their home, was dramatic!

To be as objective as possible, try to see your home and neighborhood through the eyes of the buyers. You don’t have to have the most attractive home in your neighborhood to get it sold. But, wouldn’t it be nice if buyers pulled up in front of your home, and were excited to see inside?

photo credit: EverySpoon

Here are current mortgage rates for the Denver Metropolitan area. These rates change constantly, so they are subject to change. I will post new rate information if these figures increase, or decrease dramatically.

Conventional 30 year fixed: 5.875%

FHA 30 year fixed: 5.75%

VA 30 year fixed: 5.75%

5 year interest only ARM: 5.375%

Jumbo 30 year fixed:  7.875%

Jumbo 5/1 ARM 5.5%

Rates for Government programs (FHA & VA) have improved slightly over last week.  Conventional and Jumbo products have remained about the same.  There are fears from inflation that may move rates higher (Oil at record highs!)

If you have any questions about mortgages, or how to lock in a rate, please contact us at any time.

The Inspection and Financing

We have a contract! Don’t Panic! Now, what is it REALLY going to cost us and what kind of shape is it REALLY in. This is where we find out how much we REALLY want a new home.

Like any smart home-buyer, we were pre-approved for financing and had a couple of options on how to structure the possible loan. Now that the property & price are identified the real numbers come into play. As a Buyer, comparing GFE’s (Good Faith Estimate) from different Loan Originators feels like I’m standing on a subway platform watching a professional three-card Monte (the bent cards & you have to catch the queen). There are known costs, estimated costs, pre-paid items, escrow accounts, and points all arranged in a very detailed page. The problem for the average buyer is the categories vary between lenders but some how the numbers come out the same at the bottom. Some people are good just looking for the interest rate and monthly payment. Others will create spreadsheets comparing individual costs and categories and lay awake at night thinking about the dollars involved. I like the spreadsheets, for some reason. After a few nights of restless sleep, I have a new found appreciation for my clients and the level of anxiety that accompanies your name to a sizable amount of debt.

What I discovered is at the end of the day you have to make a decision and pick a loan package. If you are working with quality lenders the top 2 options are really very close in costs and it comes down to personal comfort. You can maximize your down payment to lower your monthly payment or minimize the down payment to keep cash available for repairs or other investments. It’s your money, you get to make the call.

The Inspection appointment is one of my favorite events during a contract because new or old, you just never know what you will learn at the end of the day. I am always entertained by homeowner modifications completed over the years. More than once I have heard a client or inspector say “What were they thinking?” It isn’t a perfect world and I’m telling you right now, your house is not perfect. Get over it and get on with it. If the house is solid and there aren’t major health or safety issues involved we will likely find an agreement that works for the Buyer and Seller.

I am convinced the Inspection process does work. It provides the Buyer an opportunity to turn and run, negotiate for work on the house, or sign on as is. Each house and each Buyer is a one of a kind and the inspection process helps the Buyer get acquainted with the investment. Our house is a 1951 frame built structure and there are issues throughout the house. However, they are issues we are willing to deal with on our own terms. We have the knowledge and the resolve to work with the issues during our time in the house. It is go-time and we’re ready to seal the deal!

Here are current mortgage rates for the Denver Metropolitan area. These rates change constantly, so they are subject to change. I will post new rate information if these figures increase, or decrease dramatically.

Conventional 30 year fixed: 5.875%

FHA 30 year fixed: 5.875%

VA 30 year fixed: 5.875%

5 year interest only ARM: 5.375%

Jumbo 5/1 ARM 5.5%

You’ll notice the market is not wanting to play on adjustable rate mortgages, and they are making sure to get a premium for the Jumbo loan programs. But the market is loosening up a bit for this type of money.

If you have any questions about mortgages, or how to lock in a rate, please contact us at any time.
photo credit: woodleywonderworks

The rate of foreclosures seems to be linked to a little bit of Mortgage Fraud. Well, I’ll be darned. Who’d of thunk it?

Colorado has ranked in the Top 10 (or bottom 10, depending on your level of cynacism) for foreclosures during many of the past 5 years. Not coincidentally, the Centennial State has been in the Top 10 for Mortgage Fraud, over much of the same time.

Why is this? Maybe Colorado is full of dishonest people, home of the swindler? No, the real truth lies in the fact that Colorado was only one of two states (Alaska being the other) that had ZERO regulation over the mortgage industry.

Recently, this has changed. Mortgage Broker’s now need to be licensed by the state, and there are several new laws, enacted by the Legislature, targeting mortgage fraud and deceptive lending practices. By January of 2009, all mortgage brokers are required to complete educational requirements and pass a state exam, to continue in the business.

A good start, and with the tightening of underwriting guidelines, the “Wild West” that was, will be a bit more tame!

We are happy to refer you to LICENSED mortgage broker’s with whom we are comfortable putting our reputation behind. Please let us know if you would like the names of a couple honest and ethical mortgage professionals!
photo credit: adactio

Click here to view Part 1

We have found the property! After months (years?) of looking at properties and neighborhoods we have identified a nice little home that fits the bill for our current real estate needs. Like most young couples we have approached the purchase of a home as a long term decision because “we are going to live here a very long time.” The Realtor® in me knows we are likely to move, and purchase, again within the next few years, along with the rest of the country. This piece of information, and knowing we do not need to buy on a tight timeline, allows us to approach a contract offer from a more relaxed position.

One of the biggest lessons I have learned as a Buyer’s Agent in real estate transactions is to determine your goal, or target, and “choose your battle.” For most Buyer’s and Seller’s the most important battle is the Price, and at the end of the day it is the “Net Purchase Price” that matters. If a Buyer truly wants a house, and the house meets the real requirements, then bring a real offer based on the market education provided by your Realtor®. Presenting a simple and serious offer will always get a better response from a Seller than an offer full of concessions (Seller paid costs and buy downs). Some Buyers will load up an offer with numerous negotiation items thinking they can give up most as negotiating tactics with the Sellers. The problem becomes when the offer has too many concessions and the Seller’s reject the offer outright and you never get the chance to sit at the negotiation table.

Negotiations and Counterproposals are an opportunity! I always enjoy the opportunity to work towards an agreement between the Seller and the Buyer. It is interesting to me that everyone involved in a real estate transaction want the same thing, a satisfying transaction. Far too many Buyers and Sellers will get emotional, find an offer “insulting,” and simply shut down the deal. Using a Realtor® allows the principle parties to step back and consider advice before making a decision. The professional real estate agent is a 3^rd party that can work a deal through the emotional baggage and stress that arises due to both the financial and emotional investments the Buyers and Sellers bring to the table.

After presenting the initial offer, and a couple of rounds of “opportunity” back and forth, we have a fully executed contract to purchase a house in the location we want. Now we begin the due diligence on the property and getting the real numbers for financing the deal.

Stay tuned for the rest of the story!

There are a number of key factors to consider when investing in Real Estate.  One of the most important for the long term thinkers, those who are buying with the intent to hold for a few years (3-5 minimum) is vacancy rates.  Vacancy rate is the percentage of units that are empty.

No one wants the cash flow pimp of an empty unit!  Cash flow is king,  and if the market is saturated with available units, it means the owner/investor will have to eat a monthly payment, or reduce the rent charged to gain a tenant.  Both of these options kill cash flow!

These statistics just published by the Rocky Mountain News, continue to show that the vacancy rate in Denver is a positive sign for the Real Estate Investor.

Apartment vacancy rates in the Denver metro area fell to 5.9 percent during the first quarter of 2008, falling from 7.1 percent during the first quarter of last year.

To go along with the tremendous value opportunities in our market, this is a great time for the investor, or wanna-be investor to get into the game!

Please contact us to get more information, as well as, access to our exclusive list of “Wholesale” properties we find for our clients!