About Kent County, MI

According to NAR's [National Association of Realtors] latest figures,

Did You Know: November 6, 2009, the increase in single owner households in

on the rise. They attribute it to baby-boomers that are widowed but staying

in their home. There has been an increase in single women purchasing homes,

per NAR's stats, almost one-quarter of first time home buyers were single

females who purchased their first home on a median income of $47,400.

The national average for single occupant households is 28%. This figure

is likely to rise after the results of the 2010 census is revealed in January.

This trend is good news for the small bungalows and ranch homes built

after World War II that are on the market today. We have found that

condos and townhouses have great appeal to the single buyer, too.

It used to be unusual for people to live alone but is much more

accepted as the norm today.

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Roselle Park in Ada Michigan along the Grand River is 247 acre park that is

a dedicated Natural Habitat Refuge. On a rainy Saturday a few weeks

ago, we stopped and took a few photos. It was cold and windy but

the fall colors were great. We walked on one of the trails along the Grand

River. A very peaceful place to visit. Dogs on leashes are welcome.

These silos were left from the previous owner of the property. The one with

the stars on top has been made into a 9 story observation tower.

This stone states that Roselle park is dedicated the people of Ada Township

View from the observation tower toward the Grand River

On the walking trail along the river.

The Grand River, the longest river in Michigan. It starts near Hillsdale MI and

winds it's way north then west, eventually emptying into Lake Michigan.

This spot is just north of the confluence of the Thornapple River at Ada MI.

Roselle Park Nature Preserve on the Grand River

Roselle Park Flood Stage Spring 2009 Video

Roselle Park Photos

It's been pretty common knowledge for the past 18 months that the stated income, no document, no income, and low document loans are gone. However, I think that a lot of great customers with really high credit scores- say 740 and up, don't know that in the past they probably got through the mortgage process easier because of something called alternate doc. I will list below the difference between a truly full document loan and alternate doc. (the norm of two years ago):

Full Document :

• 2 years W2s
• 2 years tax returns if you have any self employment income (even if we aren't using it b/c they want to prove you don't have a loss or anything adversely impacting your income)
• 30 days paystubs, current
• 2 months current bank statements, all pages; if your bank statements are business accounts, you will need the bank or credit union to put in writing that withdrawing the money does not adversely impact your business.
• Most recent retirement statement, all pages
• Full Verifications of Rent/Mortgage (if you do not rent from an apartment complex you will most of the time need to show cancelled checks), Deposits, and Employment. We must prove where the money came from, if gifts, that the gift giver had funds to give, and that you are employed, in writing by the employer- not just pay stubs. A verbal verification of employment will also be done right before closing to prove you did not lose your job between the time your employment was verified and closing date.

Alternate doc (no longer available):

• W2s rather than tax returns
• Paystubs rather than verification of employment
• Bank statements only rather than verification of deposit from bank
• Most often no verification of rent or mortgage per the computer approval

The all pages issue is a pretty big one- often people don't understand that if there is no significant info. on a page, we still need it! If it has a page # on it and if you exclude it because you know there's no info. on it, the underwriter doesn't know this- they will wonder what you're hiding! And you must explain all large deposits. This, too, is a pretty big one that people often don't understand. Even if you don't need the money in your account for your transaction, once it's disclosed we need to source where it came from- i.e.- even an inheritance. The banks want to know that your money is legitimate, that no one is incenting you to buy them a home, etc.

The paystubs need to be the most recent. If they aren't recent, the underwriter will NOT assume that because you're salaried your pay hasn't changed or that you still have your job. These days, good people are getting laid off left and right. They'll want the most recent paystubs, and they'll do a verbal VOE (verification of employment) right before close to make sure you're still working.

So in general, believe us that we share in the frustration. We share this information to help expedite the process as much as possible and to help set expectations from the beginning, keeping in mind that underwriters will often "condition" for information.

We know you are great borrowers, but now we have to prove it!

This morning, my inbox has received several notifications about the formal extension of the Homebuyer Tax Credit which will provide financial assistance to many New Home Buyers and Existing Homeowners who are considering the purchase of their next home. Later in the day, a conversation with a client underscored our need to make sure that as real estate professionals, we provide accurate information from the Federal Government about this tax credit. Here's the question:

Question: If an existing homeowner sells a home and qualifies to utilize the extended Tax Credit, is the date on the contract OR the settlement closing date the one which is used to determine qualifying eligibility?

I spoke with 2 mortgage officers, both of whom were not certain about the answer. Than I visited the Federal Tax Credit information site (which had not yet been updated to reflect the news of the morning 11/06/09) and also read the FAQ from our State Association & the National Association of Realtors. Why was this necessary? Well, the answer in part may be the result of rapid changes which sometimes create a lack of clarity. However, here's the response from the National Association of Realtors (NAR) which was obtained from my local and state Board.

Question: I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?

Answer: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.

This is just on example of the types of questions which consumers will be asking. Do you know where to send them to get accurate information? The Michigan Association of Realtors has been proactive in getting information out about this program. Other detailed questions about the change in the provisions for the Tax Credit can be found here.

Kris Wales recently wrote an excellent blog (Members Only) about the dangers of rushing to provide information which may not be fully accurate and the harm this can do to a consumer. In a rapidly shifting environment, even loan officers are not necessarily getting information prior to the general public or real estate agents. It becomes even more critical for real estate agents to direct clients to reliable sources and to ask their clients to contact the appropriate professionals for additional guidance when appropriate.

I recently learned that the MI congress passed a law stating that home owners who buy an owner occupied home and retain their previous primary residence while they attempt to sell can keep the homestead exemption for up to three years on both properties. This is a huge benefit to move up buyers who are having a tough time selling.