Deborah Winters Chaney, ABR, CRS, eAgentC, SRES

Everybody can now participate in purchasing a new home! Right now...we are probably in the best buying time in the history of the real estate market. Properties and interest rates continue to be at all-time lows...AND don't forget the $8000 First-Time Homebuyers Tax Credit you'll receive, if you have a signed contract by April 30, 2010! This tax credit is also available to people who haven't owned a home for three or more years, and now there's an additional $6500 Tax Credit for people who have owned their current home for 5 or more years!

Why should you use a Realtor? If you are in the Houston or Galveston County, Texas areas...why should you email or call me at all? Because I will save you huge amounts of time and aggravation, which will save you money in the long run. I will set up a very specific home search, with exactly the criteria you give me, that will be emailed directly to you every time a new listing is put into the MLS System! I will also represent YOU in all real estate transactions. I won't be representing the Seller! If you don't have a Realtor working for and representing you...it's like going to court without an attorney...not very wise. And remember: A Buyer does not pay the Realtor's fee...Sellers do.

So please...don't hesitate to contact me with any real estate questions you may have. I am available for hire!

This is forwarded from the PTA president at Westbrook but has to do with Clear Lake Intermediate.

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All,

Yesterday (Sunday) around 4:45 pm our worst fear as a parent was nearly realized. I was putting away groceries and preparing dinner while Craig was working on the computer. The kids had been playing outside on our street when Phillip rushed to tell us that "a man tried to take Allison and he saw him." Allison was in shock when she came into the house but was able to tell us what happened. The man pulled up in a white Chevrolet truck and approached Allison from behind as she was pushing Phillip's big wheel home. He told her to "stay still." Thank God she did not listen and instead fought back with a 36 in. toy shovel she had been holding. She hit him several times knocking him off balance. He fell backward to the ground, which gave Allison the opportunity to get away. We called the police and reassured her that she absolutely did the right thing to defend herself and get away. Craig rallied the neighbors to gather information and notify others in our subdivision. Allison was able to give the police a description of his vehicle, clothing, hair, face, etc. The officer confirmed Allison's description which matched an earlier report on Friday near Clear Lake Intermediate school. A person matching the same description with the same vehicle tried to abduct another child in the area. That child ran all the way to Whitcombe Elementary School to report what had happened. The officer believes that this person chose this time when schools would not be able to get a letter out to parents. We have encouraged Allison to be empowered to help others rather than be fearful. She is helping Craig to inform others and will testify. We pray that this person is caught before he succeeds. We are shaken but not destroyed, and will cope by prayer, keeping our routine, and talking about it often. I may be a little out of it today, but I thought you should know what we are dealing with. This can happen in any neighborhood at any time at the most benign moment. We thought we were vigilant parents, but it takes only the opportunity of one unguarded moment for evil to strike.

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I just received a description of the man who has attempted to kidnap two children near CLIS. Please be on the lookout for this man and call the police if you see him.

Gina Rico

WIS PTA President

He is 5'7", white, has short dark hair and was of "regular" build (not too thin or heavyset). He was wearing a yellow jacket and jeans. He was driving a white, newer model Chevy truck (could have been a pickup or it could have been something like a Tahoe). He matches the description of another attempted abduction on Friday morning at Clear Lake Intermediate. The police feel that he will try again.

As we all know the Lending business has gone through quite a lot this past year. I have come across an article written by one Lender I have done business with and trust. I thought it would be worth sharing his article with you:

Chances are you have seen the mortgage meltdown within the past year on various forms on news. Who hasn't? Whether you were watching the evening news, reading the newspaper, have heard various stories from friends and family members, or are involved in it yourself.

Here are some of the problems that occur in the mortgage industry and some insight on what to watch out for:

1) Stated income loans - These are loans for people who say they make x number of dollars however they cannot prove it. In turn, the loan officer qualifies them at this usually higher than realistic income and they get into the home. When a financial problem arises, they are unable to make their mortgage payments. If you cannot afford the payment with the income you make right now it is not a good idea to get into the loan. You might want to consider looking for something more affordable.

2) Borrower showing up for closing and the rate and closing costs on the paperwork are different from disclosed. Loan officer says they are getting 6% fixed and at the time of closing, the rate is 8% and is adjustable. This happens all the time. It happens more with people applying with a mortgage company advertised online or on commercials. The problem is that you do not get to know the people you are doing business with. They may be in another state. Sometimes you have no other choice but to sign and then you get into trouble. A way to prevent this is by looking for testimonials from people that your loan officer has helped.

3) Application fees - Mortgage companies charging application fees. Some mortgage companies require an application fee of $465.00 or more. The reasons these fees are charged are to prevent a borrower from shopping around. It is hard to walk away from a deal when you know you are throwing $465.00 away by leaving.

4) Builder affiliated mortgage companies - This is a huge one. The builder who owns part of the mortgage company says that if you use xyz Mortgage Company (builder preferred), you will receive the upgrades at no cost. If you decide to use your own mortgage company, you will not receive the upgrades. This is a violation of RESPA, and should be reported to HUD. Builders receive fines of thousands of dollars for this practice. For example, this is the story with James and Jennifer. They have great income and good credit. They have jobs that they have been in for a while. They bought a home and used the builders preferred mortgage lender. They are in a 2-year adjustable rate mortgage (goes up after 2 years) at 8.6%, with a pre-payment penalty of 3 years (mortgage lender charges a fee for paying off early). Their second rate is 12% fixed. The first rate is adjusting to 10.6 this January. By refinancing to a fixed rate mortgage of 6.5%, they are saving $312.00 per month.

5) No fee refinances - Loan officers make money in two ways. One is in the closing costs you see. The other is in the interest rate charged. The higher the interest rate the more money the mortgage banker-broker makes. A television commercial was offering a $395.00 flat fee refinance. Given the scenario, of a 700+credit score, proven income and looking to refinance a $200,000 loan, switching it from a 30-year to a 15-year and no cash out, they would qualify the buyer for a 7.5% interest rate. Someone with this can easily receive around 6% fixed with closing costs. Based on the commercial offering the buyer would pay an additional $124 per month for the no cost refinance. Over 15 years that is $22,320 extra in payments. Make sure that the person you are dealing with tells you about how the mortgage company makes money. Closing costs and yield spread and, remember that mortgage brokers are required to disclose the amount of money made where mortgage bankers are not.

6) Retail lenders vs. mortgage broker - The myth is that you can receive better pricing by going directly to the bank to secure the financing vs. using a mortgage broker. I recently had a client I will call Greg. He is in the financial advising business. I called and gave him the deal that I could get and gave him the name of the bank I was using. He called the bank directly and to his amazement, my rate was .5 cheaper than he could get at the same bank. We closed him at 6% and the best the bank could do was 6.5%. Their answer was that from the bank was that the mortgage broker must have WHOLESALE RATES!

Here are some tips to make sure you are getting a good mortgage deal:

1) Do not be pressured in any way.

2) Check references.

3) Look for testimonials.

4) Get expert advice.

5) Have an attorney review the paperwork.

6) Do not pay application fees.

7) Do not borrow more than you can pay back. If someone offers you a stated loan, leave the office.

8) Find out how long the loan officer has been in business. Have they furthered their education by taking fraud prevention courses?

9) Deal with someone local. It is easier to resolve problems with someone you can meet face-to-face vs. talking with someone in another state. Avoid dealing with online advertisements or commercials.

10) Make sure that they are telling you how much they are making on the loan. Make sure they discuss how they are paid. If they are a broker, they will have to disclose closing costs and yield spread premium.

11) Find out if they are licensed. Mortgage brokers and loan officers that work for mortgage brokers require a license. Mortgage bankers that work for banks or credit unions do not require a license.

12) Find out what percentage of clients are from repeat/referral business. This will give you a good idea on who you are dealing with. See if they will give you the name and number of a closed client.