NO, IT'S NOT WORTH THE PAPER IT'S WRITTEN ON!

Everyone is familiar with the expression that "it's not worth the paper it's written on!" In the world of real estate, nowhere does that hit home more than with mortgage pre-qualification letters!

In the competitive climate of our current sellers' market, having a strong pre-approval letter by a respected local lender can mean the difference between getting your purchase offer accepted or rejected. Realtors appreciate the importance of a reliable evaluation of the purchaser's ability to fulfill the terms of the offer, and will recommend that sellers favor prospective buyers with credible letters.

Particularly at risk are private sellers (for sale by owners) who lack the experience to evaluate prequalification letters. A recent study conducted by Campbell Communications via a survey of 1,700 real estate industry sales and management personnel yielded alarming results, with 51% of the respondents citing unreliable pre-approval letters as a cause of major concern:

•Internet lenders were the worst offenders, with 39% of their pre-approval letters considered invalid

•Mortgage brokers were second, with 27% of their pre-approval letters considered invalid

•National lenders faired slightly better with 19% of their pre-approval letters considered invalid

•Mortgage companies affiliated with real estate brokerages were the most reliable, with only 9% of their pre-approval letters considered invalid

In order to avoid sellers getting tied up in a contract with a purchaser who does not qualify for financing, experienced Realtors generally follow up by calling the lender who issued the pre-approval letter. Some of the issues that merit confirmation are:

•insure that a 3 depository credit report has actually been reviewed

•confirm that there are no "hidden contingencies" (a house that must be sold or leased in order for the buyer to qualify)

•debt and income ratios are within acceptable guidelines

•sufficient funds are on hand for the down payment and closing costs

•no unusual conditions must be met, such as the settlement of a divorce or estate prior to closing

In order to reduce the number of last minute surprises, I recommend working with a reliable local lender who underwrites their own loans. Although internet lenders may appear to be offering a better deal, if it looks too good to be true, chances are that it is. Any advantage in a lower rate can quickly be offset by unexpected fees and charges at closing, or costly delays in settlement.

Courtesy of Yvette Smith, SRES® REALTOR®
WILLIAMSBURG REAL ESTATE
757-753-7472
5350 Discovery Park Blvd
Williamsburg Virginia 23188
YvetteSmith@lizmoore.com

A BLOG WITH A CAUSE

Hello BLOGGERS & BLOGGERS-TO-BE!! BLOG ACTION DAY is October 15, 2008.

What is a blog?

Wikipedia says...A blog (a contraction of the term "Web log") is a web site, usually maintained by an individual with regular entries of commentary, descriptions of events, or other material such as graphics or video. Entries are commonly displayed in reverse-chronological order. "Blog" can also be used as a verb, meaning to maintain or add content to a blog.Many blogs provide commentary or news on a particular subject; others function as more personal online diaries. A typical blog combines text, images, and links to other blogs, web pages and other media related to its topic. The ability for readers to leave comments in an interactive format is an important part of many blogs. Most blogs are primarily textual, although some focus on art (artlog), photographs (photoblog), sketches (sketchblog), videos (vlog), music (mp3 blog), audio (podcasting), which are part of a wider network of social media. Micro-blogging is another type of blogging, one which consists of blogs with very short posts. As of December 2007, blog search engine Technorati was tracking more than 112 million blogs. With the advent of video blogging, the word blog has taken on an even looser meaning - that of any bit of media wherein the subject expresses his opinion or simply talks about something.

Now that you know what a blog is, here is opportunity to get take action for a great cause. Blog Action Day is an annual nonprofit event that aims to unite the world's bloggers, podcasters and videocasters, to post about the same issue on the same day. The goal is to raise awareness and trigger a global discussion. The purpose of Blog Action Day is to create a discussion. We ask bloggers to take a single day out of their schedule and focus it on an important issue.

What will I write about?

For 2007 Blog Action Day, the topic was THE ENVIRONMENT. This year, 2008, the topic is POVERTY. Poverty is not only a pressing issue, it is a complex one. It's easy to think that there isn't much an individual can do. Fortunately this isn't the case at all. With activities ranging from advocacy and professional contribution to charity and financing, there is in fact many ways that we can act. You can find a range of resources about poverty, about what the average person can do as well as dozens of post suggestions and ideas by visiting www.BLOGACTIONDAY.ORG

So join in the cause and BLOG ON!!

Courtesy of YVETTE SMITH, SRES® REALTOR®
WILLIAMSBURG REAL ESTATE
757-753-7472
5350 Discovery Park Blvd
Williamsburg Virginia 23188
YvetteSmith@lizmoore.com

BEYOND BOOBS

in WILLIAMSBURG VIRGINIA

presents

A PINK CARPET EVENT

To Premier...

A CALENDAR TO LIVE BY 2009

A Very Special Project ot Save the Lives by Increasing Breast Health Awareness

Wednesday October 15th, 2008
6:30 P.M. - 9:00 P.M.

Williamsburg Chrysler Jeep Kia Showroom
3012 Richmond Road
WILLIAMSBURG VIRGINIA

$50 per person - includeds a calendar
(Tax-deductible portion of each ticket is $35)

Visit www.beyondboobsinc.org for more information.

Courtesy of Yvette Smith, SRES® REALTOR®
WILLIAMSBURG REAL ESTATE
757-753-7472
5350 Discovery Park Blvd
Williamsburg Virginia