Brenda Kinsey

I really wish I would have known who John R. Talbott was in 2007 when I purchased my last home (prior to being a licensed agent); at this time, I was one of the millions of people who had buried their head in the sand and didn't even think about the housing bubble and how it would eventually burst. I wish I would have read his book Sell Now! The End of the Housing Bubble, which came out only months before my husband and I purchased our home (which is now worth $30,000 less than we paid).

Mr. Talbott recently wrote an article "Homes - Buy Now"; his opening paragraph is simple and to the point, "I have been waiting for more than five years to offer this advice. It is now time in most cities across the country to buy a new home or refinance your existing home with thirty-year fixed rate mortgage debt". He goes on to state several reasons to support this claim but the one that stuck out to me is the fact that according to the S&P Case Shiller price index, residential real estate values are equal to 2003 first quarter prices. Wow! Now factor in the current mortgage rates and it becomes very clear why buying a home today makes perfect sense.

Here is a sample to stew over (taken from www.keepingcurrentmatters.com):

Date	Loan Amount	Interest Rate	Monthly Payment (P&I)
2003	$250,000	5.88%	$1478.84
Today	$250,000	4.00%	$1193.54
Difference In Payments			$285.30

This equated to a $285.30 a month savings, $3,423.60 a year and $102,708 over the life of a 30 year mortgage!

A recent report by JP Morgan explains another great reason why now is a great time to buy a home. One measure of housing values is the ratio of personal income to home prices. The report explains where we are today:

"Since 1966, the median price of an existing single family home in the U.S. has varied between 150% and 251% of personal income per household. However, roughly three quarters of the time it has been in a relatively narrow band between 185% and 230%".

Today the ratio is just 153% implying that to get back to an average price to income ratio, home prices would have to rise by about 27%.

Mr. Talbott closes his article with the following: "So, run, do not walk to your neighborhood banker and either finance a new home purchase or take out the maximum amount of money he or she will lend you on a home equity loan and buy hard assets, not financial securities, with the money. When inflation comes roaring back the only perfect hedge is to be a borrower, not a lender or investor. Shakespeare said "Neither a borrower nor a lender be," but they didn't have huge government deficits and the risk of future inflation back in the Bard's time."

The Kinsey Group is excited to announce our Buyer Advantage Program to help our clients save money. You can view homes and get started today by visiting our website.

Everyday as agents we help people move from one house into another house. As we know, moving is one of the highest causes of stress. The very thought of moving can fill people with dread – and experts say that as the most expensive and life-changing financial transaction most people ever undertake, it’s probably also one of the most stressful. Well, we can attest that changing Brokers is stressful as well. The decision wasn't easy to leave one of the most successful brokerages in the country, but it felt like the right thing to do for my growing team. We interviewed several companies and decided on joining Halo Group Realty located in Allen, Texas. Our team is excited about the opportunity to get started on the ground floor and grow with Halo.

We have heard about it, seen the signs and all the ads for this at one time or another, and even googled it, "Land For Sale in Texas". What drives people to search for land? Is there a different type of mindset when comparing someone who wants to buy a home compared to someone who wants to build a home on a piece of land? I have the luxury of having my office situated on an epic piece of land with a 24 acre lake in the backyard that is home to Canadian Geese, Deer, Wild Turkeys, Wild Pigs, Egrets, and various ducks and small furry creatures. Out the front window is a view of our Equestrian Center where boarded horses play under the Huge Texas Sky, it's a very "Legends of the Fall" kind of scenery that we have here at The Bridges at Preston Crossing in Gunter, Tx. But there is soo much more! I can jump in my car, drive two minutes down the road, (I say drive because this place is huge, 1,600 acres of rolling hills, trees, Utter Greatness, and if I walked it would take forever...because I would die before I got there) and I hit our 18 Hole Fred Couples Signature Golf Course and Superb Clubhouse with a menu to die for. This is my job! I get to come to this place 40 hours a week!! I believe the article I read on CNN.com said it best:

" Whether you're looking to strike it rich or simply put space between yourself and your neighbors, the idea of owning land stirs the imagination. Walking the edges of a two-acre country lot may be today's equivalent of heading west in a wagon 150 years ago."

When it comes to buying the home-sites that we have here, I have the pleasure in talking to a great number of people, and because of this have noticed trends in the people who I have spoken with.
The One Thing

Jack's Character in the movie "City Slickers" was right on the money when he said that the secret to life was just one thing. That's what we have here at The Bridges. Whatever your one thing is, it can be found here. Want to get away from it all, and still have access to civilization? It's here. Want to be able to play 18 Holes before relaxing on the patio? It's here. Want to Ride your horse on wooded trails? It's here. Want a home on a cul-de-sac with exemplary rated schools for the kids? That's here too. The people that decide to come out here, after searching "Land for Sale in Texas" by whatever means, find that thing that they have looked for. But the knowing what that thing is, is the common trend I see between them all. Once you have discovered your one thing, you will discover that The Bridges is the place for you and your family.
Inner Joy

I have yet to meet a rude person who wanted to buy a home site. The landscape here is pure serenity, and it has this wonderful effect on everyone who steps foot here. We are located about 20 miles north of Frisco, Tx on 289/Preston Rd. When people get here they have been in a car for some time depending on where they are traveling from, and despite this fact, they are completely rejuvenated When they step out of the car, take a deep breath, and survey the land. That seems to be a requirement that is written somewhere, although I have yet to find the sign. Step Out of The Car, Take a Deep Breath, and Take a Look Around. They all do it, and when they do, after the stretch, comes the smile. It's a great thing to watch. The Home-sites here range from $50,000 - $160,000 and beyond depending on what they are looking for, and we always find the perfect piece of land to match their needs. This isn't a quick process, but it is a fun process! These clients get great joy in imagining their home on a hill, in the woods, with a tree line on the back, with a great view of the 9th hole, you name it.
Worn Shoes

I'm not saying that these customers I see are in dire need to hit up a shoe store, but it's a phrase I like to use to describe that individual that is using the road "less traveled by". My customers are not coming here to buy land so that they can camp out under the stars every night, as cool as that might be, they are still going to build a home and live in it. What these "Worn Shoes" have in common is the desire to have a home-built on their terms, using a licensed builder, with the features they want and need to make the house a home. This goes way beyond the "Pick from "X" number of models, or "X" number of floor-plans, but to choose every detail of your home. That is an amazing thing to see. I have walked through some of these homes and it is a wonderful tour. The homeowners talk as though they, themselves, put up every piece of drywall, laid every piece of travertine, and planted every shrub. To know your home on such a level can only be accomplished by those who have the ability to know what they want and go for it. So, the next time you search 'Land for sale in Texas", save your self the endless clicking and zooming in on the countless pictures of nothing. Come out the The Bridges and Preston Crossing, and see for yourself what I have talked about. This is something you need to see and feel. No virtual tour will ever to this place justice. Come see The Bridges, I'll be waiting.

Let's talk about credit or "Credick" as a friend of mine likes to call it in the Bayou. It goes hand in hand when you decide to buy a house, but how? When The Kinsey Group meets a new client we like to get the "credit talk" done first. Why? It helps the buyers and sellers (Yes, Sellers need the talk as well, but more on that later). Let's get some basic questions out-of-the-way first. According to About.com: What is a credit score? A credit score is a number that lenders use to estimate risk. Experience has shown them that borrowers with higher credit scores are less likely to default on a loan. How are credit scores calculated? Credit scores are generated by plugging the data from your credit report into software that analyzes it and cranks out a number. The three major credit reporting agencies don't necessarily use the same scoring software, so don't be surprised if you discover that the credit scores they generate for you are different. Why are credit scores sometimes called FICO scores? The software used to calculate a great number of credit scores was created by Fair Isaac Corporation--FICO. Which parts of a credit history are most important? Use these percentages as a guide: 35% - Your Payment History 30% - Amounts You Owe 15% - Length of Your Credit History 10% - Types of Credit Used 10% - New Credit Educating our clients is always the most important to us. The Buying and Selling of a home is a Stressful time as it is, and when you add a dash of uncertainty, it can be really, really, really stressful. We all have credit, need credit, use credit, want better credit, and so on and so on. But do we understand it? Ah ha! And there it is. This is nothing new, but this is how we like to make sure that when searching for a home for sale our clients know what to expect. Let's attack this in two parts: What do you need to qualify for a Loan and how do I get the Best rates? You need a loan, unless you just plan on laying down a few hundred Gs, for your home. So let's get some expert advice on the subject, shall we.

"Fannie Mae recently increased their minimum credit score requirement from 580 to 620. So if mortgage lenders want to sell their loans into the secondary mortgage market (through Fannie Mae), they'll expect buyers to have a score of 620 or higher. Of course, that's just what is needed to get approved. You'll need a much higher score to get the best rates, probably north of 760."

(Source: HomeBuyingInstitute.com, January 2010)

"Cecala says that borrowers will need a FICO score of at least 730 to get the best mortgage rates."

(Source: USNews.com, December 2010)

"To qualify for a loan, first time home buyers need a credit score of at least 660 unless they try for an FHA loan."

(Source: ThinkGllink.com, January 2009)

"About two years ago, you could have had a score of about 620 or so to get a lender's best rate on something. Now, lenders are really looking at a rate of 760 at the least, said Kelli Grant with SmartMoney.com."

(Source: komonews.com, January 2009)

"The top notch credit score needed for the best rate in today's world is 740, Wickert said. It's possible for borrowers with weaker scores to get the good rates, but they pay a risk premium that can be financed into the new loan. For instance, Wickert said, someone with a credit score between 680 and 699 could get the same rate as the person with a 740 score by paying 1.3% of the loan balance up front."

(Source: JSonline.com, December 2008)

"Borrowers need a credit score of at least 750 to get the best deals. Keeping credit-card balances below 35 percent of their credit line is very important, but 20 percent is the maximum allowed for a top score."

(Source: RealtyTimes.com, November 2008)

"In the latest example, Mortgage Guaranty Insurance recently boosted the minimum credit score needed for someone to buy a house in a restricted market. In August, the minimum score was 680. As of October, the minimum score is 700."

(Source: MoneyCentral.MSN.com, October 2008)

"To qualify for the best interest rates on a mortgage loan, you'll need a credit score of at least 760; a score below 620 places you in subprime territory."

(Source: Kiplinger.com, October 2008) So getting the loan is half the puzzle, and the interest rate for that loan is the other half. And when it comes to interest rate, it's more a matter of comfort than anything. It's the monthly payment that is the focus, or at least, should be. For our Buyers, Getting pre-qualified is crucial, before letting the excitement take root. Why? Well, since you asked I will tell you. You are able to jump out and be ahead of the buyers that go it alone, and look at a house they may not qualify for. Everything has changed, this has been emblazoned in the news and everywhere else we turn, and with that change, People who are looking to Sell their Home are not going to take you seriously or your offer unless it has been "blessed" by the bank/lender. Our clients get to go out before the weekend folks, and when they find that house, you know the one I'm talking about, right? The house of their dreams? They get to put in an offer right then and there. How is that for a piece of Fried Gold? What? The Fried Gold thing? We Fry everything else to make it better. why not gold? For our Sellers, I told you we would get to you, they have the comfort in knowing that when we list their house, utilizing all of our Keller Williams, Social Media Goodness, they can freely look and also make offers on their next home. I wish there was more, but Sellers become buyers in the fraction of a second, seriously. So, BAM, there you have it, a small view of how credit fits into the big picture of the home buying process. If you have more questions, please,PLEASE, find out from the people that deal with it daily, The Kinsey Group at 469-248-7653. You are also more than welcome to email your questions to TheRook@thekinseygroup.net. For more information about how The Kinsey Group can help you or someone you know buy or sell a home, feel free to Search for and Follow "The Kinsey Group" Facebook, Twitter, YouTube, or WordPress.