After months of criticism that it hasn’t done enough to prevent foreclosures, the Obama administration announced on Friday a plan to reduce the amount some troubled borrowers owe on their home loans.  This plan will not apply to the investors or the vacation homes properties.  To get the full story read Gov’t Unveils $14B Plan to Help Troubled Homeowners. 

If you have any questions regarding your mortgage or selling your home contact Team Decell.

 Here we go again with additional changes in the already trouble world of Mortgage.  It seems that the only thing that is certain is that the mortgage industry is going to continue to change.  If you are considering the sale and purchase of a home it is crucial to speak with a LOCAL Lender that can walk you thru this very complicated process. 

I say LOCAL because many consumers have used mortgage institutions over the internet only to find that the loan does not close or the fees have drastically changed.  Work with your Realtor because they will usually have a recomendation of someone that they already have a relationship with.

TEAM DECELL is your neighborhood experts.  We assist clients in buying or selling their home in Frisco, Plano, McKinney, Allen and the Surrounding Area. We also have relationships with Lenders that have a proven track record and can get the job done in a painless and timely manner.  Don’t let the inexperience of others spoil your Home Purchase.  We have a team of experts that will take care of your needs.  Below are the upcoming changes.

1. Mortgage insurance premium (MIP)  increased to build up capital reserves and bring back private lending.
   1. FHA will raise the up-front MIP to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge.
   2. If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP.
   3. This will allow for capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing
   4. The initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.

1. Update the combination of FICO scores and down payments for new borrowers.
   1. New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA’s 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.
   2. This allows FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.
   3. This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.

1. Reduce allowable seller concessions from 6% to 3%
   1. The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.
   2. This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.

1. Increase enforcement on FHA lenders
   1. Publicly report lender performance rankings to complement currently available Neighborhood Watch data – Will be available on the HUD website on February 1.
   2. Enhance monitoring of lender performance and compliance with FHA guidelines and standards.
   3. Implement statutory authority through regulation of section 256 of the National Housing Act to enforce indemnification provisions for lenders using delegated insuring process
   4. HUD is pursuing legislative authority to increase enforcement on FHA lenders.

1.  Not doing your homework

 
You’ve probably heard the old maxim: “Knowledge is power.” Nowhere is this truer than in real estate whether you’re buying a home or selling a home.  With a price tag that’s two or three times your annual salary, if ever a purchase demanded preparation its home buying. 

It can be overwhelming when you think about all the factors that can affect a home’s value: its location, the school district, deed restrictions, taxes, amenities. That’s why it’s imperative that you do your homework before you start. With all of the information available today on the Internet, from Realtors and in housing guides, there’s really no excuse for entering the market ill-prepared.

2. Trying to make a shrewd investment 

It’s easy to think we are all financial geniuses. No doubt some of you are. So, Mr. Gates and Mr. Buffet, you have my permission to move on to the third biggest mistake in home buying. As for the rest of you, forget everything they told you in that late-night infomercial. While real estate investing can make a great career, it’s no place for amateurs. 

As simple as it may sound, when it comes to buying a home, your best bet is to choose one that appeals to you. The chances are very good that if you like it others will, too.  But also use an expert, that’s what realtors are for.  Our job is to know the market and to assist you in making the right decision.

Am I suggesting that you throw caution to the wind? Lead with your heart and not with your head? Absolutely not, but if you choose a neighborhood where you and others like you want to live and a home that’s attractive and structurally sound, then you probably won’t go wrong. If you want to be known as a shrewd real estate investor, then wait at least three to five years before selling and you can tell everybody that you outguessed the market.

3. Choosing a poor location 

OK – you’ve found the perfect home. It’s in a good school district, it’s got great curb appeal, a terrific floor plan that fits your family and the price is right. The only drawback is the bowling alley that backs up to it. Walk away. 

Nothing spoils life and resale value like a poor location. If it bothers you now, don’t think you will learn to live with it. The flood lights from that office building across the way will only get brighter with time. The planes on final approach to the airport will only get louder and more frequent.  This is where your realtor can assist you.  The builder or the seller is not going to tell you what is in the vacant area in the field right behind the house.  Your realtor can look up in the city plans to find out what that area is zoned for in the future. 

The best looking home, the most extravagant landscaping, tall fences, and insulated windows will never overcome a home site near a pig farm (no offense to pig farmers).

 
4. Overlooking an inferior floor plan for an attractive exterior 

I don’t mean to downplay the importance of curb appeal. A home that turns your head as you drive down the street can be a real asset. Resale will be a lot easier if you don’t have to stand on the curb shouting, “No, wait! I know it looks bad, but this home’s got great personality!” If the romance doesn’t continue when you open the door, then you’ve got a problem that will be difficult to unload. 
   
You want a home that makes your heart beat faster when you first open the door. It’s got to have a layout that makes people feel comfortable, one that responds to the way we live today. Open. Friendly. Functional. 

I’ve seen it happen a hundred times. Buyers approach a home with an exterior they’re not crazy about, then they discover a fantastic floor plan, and when they come back out, the exterior seems to have magically improved. 

If I had to choose between a good-looking exterior or a knockout interior – and I couldn’t have both – I’d choose the great interior any time. After all, that’s where you live every day.

5. Not considering how your family wants to live

 
We all carry around a mental picture of the perfect home. If you’re a child of the 60’s your ideal home probably looks like the Cleaver’s house. Younger shoppers may be searching for the Brady’s or the Cosby’s home, or maybe even the Taylor’s home from Home Improvement. These images seldom fit the way we really live. 

It’s also not about finding a home your parents would like (unless they’re helping with the down payment). It’s not choosing a home your best friends would want. 

This home only needs to fit one family – yours. Your comfort and happiness depends on how well you can judge that fit. 

Start by thinking of how you live now. Try not to be influenced by those fantasies of how life would be if only you had the right home. If your idea of fun is watching reruns of Jeopardy in your pajamas, then look for a TV room that accommodates your favorite naugahyde reclining lounger. If you like to have friends and family over for informal get-togethers, then look for a large kitchen that’s open to the Family Room. How many rooms do you need? How should they be arranged? Master up or down? Will you have use for a home office? 

Don’t overlook how your family lives outside, as well. Will you use a pool or would a hot tub suffice? Do you like to garden and work in the yard, or would you rather have less maintenance? 

If you’re buying a used home, you’ll have to look beyond the current owner’s décor and furnishings. If it’s a builder’s furnished, new model home, the toughest part will be facing the fact that the decorator and furniture don’t come with it. If you’re honest with yourself, you can find a home that will fit your family and feel like…well, home.

6. When buying a resale and new construction, not having the home properly inspected 

I can’t emphasize this one enough. When you find your dream home, it’s love at first sight. As with all love affairs, you begin to lose your objectivity and see only what you want to see. “OK, so the foundation is cracked. But, isn’t this the cutest little window you’ve ever seen?” Now is a good time to seek professional help. 

They’re called structural and mechanical inspectors. Good ones are worth every penny you pay them. A good one is licensed by the state (ask to see his or her certificate) and has no personal relationship with you, the seller, or the Builder. This is someone you pay for a professional, unbiased opinion about the structural integrity and mechanical performance of the home you’re planning to buy. They will inspect every major component of the house from the foundation to the rafters, including the central air, furnace, water heaters, plumbing and electrical. You will also want to have the home inspected for termites. As much as it may hurt to hear something negative about the one you love, this is when you want the ugly truth. 

Many resale homes were built when energy codes were more lenient or nonexistent. Independent third-party performance verification inspections that test for energy-efficiency can make a big difference in the performance of your home and its effect on your pocketbook. 

You and the seller will be given a written report with a list of items that must be repaired before you close the deal. Usually the contract spells out limits on what the seller is obligated to pay for repairs. If the cost of recommended repairs exceeds this amount and the seller is unwilling to pay for them or to adjust the sales price, DO NOT proceed. (You may elect to pay the difference if the overall deal is still a good one.) This could be the toughest decision of your life, but ignore the engineer’s warning and you will live to regret it.

7. If buying new, failing to check out the builder’s reputation 

If you’re shopping for a new home, you probably know where you want to live, so you’ll be comparing homebuilders in that area of town. You’ll look for home designs that appeal to you in a price range you can afford. Once you’ve narrowed your search to one or more builders’ homes, your next step should be to take a long hard look at the builders. Here are the most important questions you should answer about any builder before you let them build your home:

· How long have they been in business? 

· How many homes have they sold? 

· What do their Homeowners think of them?

· How many of the Homeowners would buy from the builder again?

· What do other builders say about them?

· What industry recognition have they received?

· What does the Realtor community think of them?

· What kind of warranties do they offer?

· Do they have a department solely dedicated to warranty issues?

· Do they have an energy-efficiency or green building program?

The best way to check out a builder is to ring some doorbells and knock on doors. Visit the neighborhoods where they build and ask Homeowners about their experiences. You should talk to at least three to five neighbors and get a consensus before you make one of the largest investments of your life. 

If you don’t get satisfactory answers to most of these questions, choose another builder. If none of them pass this test, choose another part of town. Beyond all the fancy advertising and hype, builders have only one thing of real value: their reputation. If the one you’re considering doesn’t have a good one, they shouldn’t get your business.

8. Not getting what you want because you’re impatient 

To borrow a phrase from the Rolling Stones, time is on your side. Show me someone in a hurry to buy and I’ll show you someone who pays too much. There are a lot of things you can rush into and recover from later, but this does not include marriage or buying a home. Never, ever, ever, rush into buying a home.  It is the single largest investment most of us ever make. It requires an enormous amount of energy, effort and research. It takes time to do it right. 

You need time to do your homework. You’ve got schools to check, tax rates to compare, mortgage companies to shop, neighborhoods to drive.

If it’s a pre-owned or new home, you need time to negotiate. Seldom should you pay the “asking price” on a pre-owned or new home. The longer you can take, the better the deal you can usually make. If you find yourself in an unavoidable time bind because of a transfer or the impending sale of your home, try to make arrangements to delay the purchase. You can always store your non-essential things and rent in the interim. Sometimes people who purchase your home are willing to lease it back to you on a pro-rated basis if you need extra time. It doesn’t hurt to ask and it could save a lot. Do the math. If patience can save you $5,000 on the purchase price, wouldn’t that be worth it? 

Whatever you do, even if you don’t have time and you must move forward, try not to show it until after the price is set.  This is best accomplished with your realtor.  You can walk away from the table and let the realtor begin talks with the builder or the seller.  The builder’s goal is to sit you at the table and get you to sign when you’re all excited.  Think about it, the seller is always in it to get more money.  The salesman for the builder and the listing agent for the seller both represent the owner and their best interest not yours.

9. Waiting for a better time to buy based on the market and interest rates

 
Buy low. Sell high. It’s a great plan if you’re a fortuneteller, but for the rest of us mere mortals, here is the best advice for when to buy a home: There is no time like the present. You know what houses cost. You know what interest rates are. You know you have a job (If not and you’re not independently wealthy, maybe you should consider putting it off).  

Warren Buffet says, “The rear view mirror is always clearer than the windshield.” Looking back, we can all see when the best time to buy a home would have been –it is hard to find a better time than the present. Who can predict the future? The best we can do is learning from the past. History shows that those who purchased homes and kept them for three to five years or more did better than those who didn’t. How can you argue with that?  

Will interest rates be lower some day? Maybe – then you can refinance. Will home prices ever be significantly lower? Probably not! Will you be making money in the future? We all hope so. Do you have a crystal ball? Stop your waiting. Just do it.

10. And the biggest home buying mistake…drum roll, please…

                                           not buying at all!  

No place to call your own. No control. No tax break. No appreciation. No equity.

No kidding.

Information is provided by TEAM DECELL.

The summer’s trend of rising home prices is ebbing as the traditional home shopping season end, two reports Tuesday showed.

The Standard & Poor’s/Case-Shiller home price index of 20 major cities rose 0.3 percent to 144.96 in September, the fourth monthly increase in a row. The seasonally adjusted index is now up more than 3 percent from its bottom in May, but still 30 percent below its peak in April 2006.

Another reading of home prices by the Federal Housing Finance Agency held steady from August to September.

Homes for sale in Frisco continue to meet or beat market expectations.  Home sales in Frisco have consistently risen for the past 5 months and the days on the market continues to decline.  That is a definite indicator that Frisco Homes Sales is strong and vibrant.  

If you are interested in talking to someone about your options please call us.  If you are interested in homes for sale in Frisco,  Plano,  Allen and  in McKinney area TEAMDECELL is who you need to call.  We also assist our clients with New Construction as well.  We are your home town experts and offer excellent customer service.  214-975-3210

RESPA Reform-Major Changes

Congress enacted the Housing Recovery Act of 2008, which included amendments to TILA, known as the Mortgage Disclosure

Improvement Act (MDIA) of 2008. Effective January 1, 2010, highlights of the RESPA reform include:

·         Revised standardized Good Faith Estimate

·         Revised HUD-1 Settlement Statement

·         Implementation of Good Faith tolerance

·         Elimination of the 1% origination cap on FHA loans

Application means the submission of a borrower’s financial information include: Borrower’s name, borrower’s social security number, gross monthly income, property address, estimated value of property, and loan amount. Upon receipt of these items, it is a requirement to issue the GFE within 3 business days. It is assumed that a GFE cannot be issued without a property. Since a good faith is not to be issued until a property is found, the address should not show TBD.

If a mortgage broker submits a GFE to a lender and the lender accepts the GFE, the lender is tied to the GFE in its entirety, including fees and important dates. However, it is important to note that Premier Lending will be re-disclosing on all loans and will only reference our GFE as the accepted GFE. If the broker purports to have locked in the loan but does not lock the rate and the lender accepts the GFE, the lender is subject to the GFE presented. In other words, they have to honor the interest rate commitment and the settlement costs presented on the accepted GFE.

An accepted Good Faith Estimate can only be reissued under the following:

·         GFE expires after 10 days and the loan is not locked (a loan originator is bound within the tolerances provided to the settlement and terms listed in the GFE) – if the loan is locked, then the GFE cannot be reissued until after the date of the lock expiration.

·         Property use changes

·         Borrower’s credit score has changed negatively

·         Parties are added or removed from title or the property moved in or out of trust

·         The borrower does not proceed to closing in a timely manner after final approval or does not act diligently to provide lender information (in other words, give the borrower a “needs” list with expiration dates).

Changed circumstance exists (changed circumstances are defined as an act of God, war, disaster, or other emergency, or information that was relied upon about the borrower or that the transaction relied on found to be inaccurate after the GFE has been provided. Information may include credit quality of the borrower, the amount of the loan, the estimated value of the property or any other information used to provide the GFE).

This is good news for the public who want to purchase a home.  Lenders can’t do the bait and switch on you at the last minute.  If you have questions regarding Homes for Sale in Frisco, McKinney, Allen, McKinney, Plano, Little Elm and Prosper contact TEAM DECELL.

A benchmark report on the country’s commercial real estate market gives high marks for two Texas cities.  But Dallas gets barely a mention.
The annual Emerging Trends in Real Estate – a survey of the country’s top commercial real estate market players – gives a nod to Austin and Houston and for improving market conditions statewide.
“Texas markets continue to show strength after years languishing in the survey basement,” the Urban Land Institute and PricewaterhouseCoopers, who do the annual report, said Thursday.
But Big D wasn’t in the annual “markets to watch” list, which tells real estate investors where to look for good deals.
The Dallas-Fort Worth area is ranked 13th out of 50 U.S. markets tracked in the report.  Still a mention and being 13th on the top 50 isn’t bad.  Commercial and Residential  Real Estate in Frisco continues to grow.
Investors are expecting some whopper buys as troubled commercial properties hit the market, the survey says.
“Those that are patient, daring and selective could score generational bargains on premium properties from both distressed sellers and banks that are clearing out unwanted bad loan and real estate owned portfolios,” said ULI’s senior resident fellow for real estate finance, Stephen Blank.

TEAM DECELL are your local experts.  We will help you find the deal that you’re looking for.

The week began with September Pending Home Sales coming in UP for the eighth month in a row. The National Association of Realtors index was UP 6.1% for the month, and UP 21.2% over September a year ago! The index hit 110.1, with 100 equaling the average level of sales contracts in 2001, the first year measured by the index.

And, yes, the Mortgage Bankers Association once again reported the average contract interest rate for 30-year fixed-rate mortgages dropped. This time it hit 4.97% with points sinking to 1.01 (including the origination fee) for 80% loan-to-value (LTV) ratio loans.

Information Provided By TEAM DECELL 214-975-3210

ARE HOME PRICES IN FRISCO TEXAS FALLING OR NOT?

MSNBC recent reported that housing prices have fallen for the 12^th consecutive month.  MSNBC stated that a recent slide in housing prices has been very moderate, but it’s only just begun — at least according to most widely watched data on both new and existing homes. As recently as the second quarter of this year, home prices were still up 3.2 percent from a year ago nationwide, according to Office of Federal Housing Enterprise Oversight. And after years of double-digit gains in many markets, home prices nationwide are down less than 1 percent, according to the National Association of Realtors. 

Fortunately for Frisco residence that is not the case, we have not seen a decline in housing prices but an increase.  MSNBC is also stating that it’s going to be harder for sellers to get their original asking price.  Frisco homes have been selling for 97% of their asking price and that number has crept up all year.  Frisco’s average home price and the price per foot sold have also been inching up all year.  In august 2009 the average price per foot sold moved up to $91.65.  Additionally our average days on the market is decreasing instead of increasing as is the National number.   Additionally, there is only 5.4 months worth of inventory on the market.  That means that the supply is decreasing which (according to Economics 101) means the demand will increase which (according to Economics 101) price will also increase. 

If you are interested in talking to someone about your options please call us.  If you are interested in refinancing your current home or homes for sale in Frisco, homes for sale in Plano, homes for sale in Allen and homes for sale in McKinney area TEAMDECELL is who you need to call.  TEAMDECELL sells homes in the Frisco, Plano, Allen and McKinney Area primarily.  They are your home town experts and offer excellent customer service.  214-975-3210

Home Sale News - We continued to have encouraging housing news last week, starting with Existing Home Sales up 2.4% for May to a 4.77 million annual rate. This was the third month in a row of increased sales, which are now 6.2% above their January low. And the percent increase for the last two months is the largest since April 2004. The existing homes supply decreased to 9.6 months from April’s 10.1 months. The median price of an existing home INCREASED to $173,000.

Next we saw new home sales at a 342,000 annual rate for May, with the supply dropping to 10.2 months from April’s 10.4 months. New home inventories are now at 292,000, down 49% from their mid-2006 peak and at their lowest level since 2001. Sales were down slightly for the month, but still above their January low. The 111,000 new homes for sale still under construction are at their lowest level since 1970. The 135,000 completed new homes for sale are the lowest level since 2006. The Mortgage Bankers Association reported purchase loan applications UP 7.3%!

Last week we reported the housing market needs to get back to 1.6 million starts a year just to meet knock-downs and population growth. A new Harvard University report heartily agrees. It says there will be millions more echo boomers than there were boomers who first grew the housing market. The report projects household growth between 12.5 and 14.8 million in the next 10 years! The report also notes that price declines and low interest rates have brought affordability to many housing markets.

For more information on the Frisco, West Frisco and surrounding area or Home Foreclosures call TEAM DECELL at 214-957-3210.  TEAM DECELL is here to meet all your real estate needs.