Jim Valentine

Buyers Can Help Themselves During The Course Of Escrow

Congratulations to you Buyers that are in escrow. Great price and great interest - it is a great time to be a Buyer. To make sure your buying experience is smooth and successful there are some ways you can help yourself through the course of your escrow. It isn't automatic that escrows close, and it is important that you help yourself along the way to make sure that yours does.

One area that causes delays, and frustration, in escrow is not having all the documents signed, or signed in a timely manner. There are many, many documents to sign during the course of negotiation, escrow, loan, and closing. If you are asked to sign something, something you agree with, make a point to sign and return it in a timely manner. If you have questions, ask them right away and get your answers. Don't delay your performance because you are not happy with, or are questioning, something.

If you are getting a new loan, don't make any purchases without talking to your lender. We've seen a simple new $1,500 credit line at a department store blow a Buyer's ratios and almost cause the Buyers to lose their new home. Without a private money swing loan they would not have been able to buy their home ... this news coming in while the Sellers are actually loading the moving van anticipating closing the next day. Credit will be rechecked before funding. If you get a new credit card, buy a new car, etc. you can jeopardize your loan.

When you get your inspection reports - read them and make your repair requests immediately. Repairs must be ordered, tradesmen scheduled, re-inspections made. A delay of a couple of days can cause you grief at the closing end.

How is your communication with your lender? Are you talking about locking your interest rate? Do you know your rate ... for sure? A shocking higher rate when you are ready to close, even if you can qualify and make the payment, is not a pleasant experience - especially if it could have been avoided. Are there pre-doc conditions? Pre-funding conditions? If so, get them handled as quickly as possible as things will be delayed until you do.

Be available to your agent, be responsive to your agent, talk to your lender, stay active. You don't have to be alert 24/7, but don't go underground. If you travel stay in touch. With email and faxes it is easy to get documentation to you most anywhere on the planet in a timely manner.

Our advice: Delays in your actions can lead to a delay in the close of escrow. These days there are new potential delay factors that we must deal with. The appraisal may be reviewed. The underwriter may initiate an unexpected and unexplainable hurdle that must be dealt with. You can't control those items, but you can control your actions. Be timely, pay attention, keep smiling, take action. Be sure to bring certified funds to close the escrow, i.e.- cashier's check or have the funds wired, no personal checks.

Remember to set up your utilities for the close of escrow. If the Seller schedules them to be turned off you might be without power, gas or water for a few days. It's the details of the transaction that will help you maintain your peace of mind as you move towards home ownership ... pay attention to them for your own sake. When it comes to choosing professionals to assist you with your real estate needs... Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781-5472. carsonvalleyland@hotmail.com, www.carsonvalleyland.com

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Lisa Wetzel and Jim Valentine are the authors of this blog. Lisa, Jim and Jessie are experts in Carson Valley, Carson City and the tri-county area of Douglas County, Carson City and Lyon County. Call our team anytime at 775-781-5472 or 775-781-3704. To Search for Homes go to: www.findhomesincarsoncity.com of visit our website at www.CarsonValleyLand.com

Truth In Lending Changes Take Effect July 30, 2009

Predatory lending practices played a large role in the recent global economic collapse. Those practices included funding loans with falsified information, hidden costs and charges. They also packaged subprime loans as prime loans and resold them to international investors. The resulting negative ramifications have been felt globally as the investments proved to be not what they appeared to be ... for the investor and the borrower. That has resulted in an assortment of laws and/or guidelines, Federal and State, intended to protect the consumer and the investor the latest of which takes effect on July 30th.

The new Truth in Lending Regulation (Reg Z) changes take effect for loan applications filed on, or after July 30, 2009. The new requirements apply to all mortgages secured by a primary or second home. Investor loans are exempt. Two main changes are the requirement of the lender to give a good faith estimate of loan costs within 3 business days after the loan application (early disclosure), and the lender may not now collect any fees before the disclosure is provided, except for a reasonable credit report fee.

More Reg Z changes: a) The escrow may not close until after a 7 day waiting period following the consumer's receipt of the early disclosure., b) If the annual percentage rate (APR) increases by more than 0.125 percent from the early disclosure amount, the lender must provide a corrected disclosure and wait an additional 3 business days before closing the loan. It is important to understand that the APR not only includes the interest rate on the loan, but certain other settlement costs. c) The consumer may modify or waive both waiting periods for a documented personal financial emergency, with some restrictions.

It is important to understand that the APR can be affected by something seemingly innocuous, but with the potential for major consequences. These can include an unlocked interest rate, a change in the loan amount, a product change (the loan product), rate re-lock due to market improvement, change in closing date, and changes to fees including settlement fees. Each of these items can occur innocently enough during the course of an escrow and, if too close to the scheduled closing date, can wreck havoc with the closing timing. Sample simple problem- if you put a home equity loan on during the transaction the initial disclosure period starts all over. With a home equity line of credit there is no impact.

Our advice: The changes aren't really burdensome, but they have the potential to delay escrows. It is important that everyone - borrower, Realtor, and lender - all pay attention to the details from the onset of the loan process to the funding. Minor changes can cause several days of delays. Delays can result in missed closing dates which can mean not only not moving on the weekend that you have arranged for with your friends and work, but can also mean a breach of contract that could cause you to lose the property in certain circumstances. All parties must be diligent in their efforts and communication on the loan and escrow process to minimize aggravation.

Getting a new loan? Better plan on at least a 30 day escrow period, and be diligent during the process. The longer the process goes the more opportunity there is for a "stick to meet your spokes". As changes occur during your escrow make sure of their consequence, if any, on your loan process.

When it comes to choosing professionals to assist you with your real estate needs ... Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781-5472. carsonvalleyland@hotmail.com, www.carsonvalleyland.com

Lisa Wetzel and Jim Valentine are the authors of this blog. Lisa, Jim and Jessie are experts in Carson Valley, Carson City and the tri-county area of Douglas County, Carson City and Lyon County. Call our team anytime at 775-781-5472 or 775-781-3704. To Search for Homes go to: www.findhomesincarsoncity.com of visit our website at www.CarsonValleyLand.com

It was trying to storm, the sky was filled with black clouds, and the sun found a way to shine. Shot from our back patio.

Serving the beautiful Carson Valley for 30 years. Gardnerville, Minden, Genoa, Smith Valley, Topaz, Carson City, Dayton.

Jim Valentine/Lisa Wetzel RE/MAX Realty Affiliates, 1320 Highway 395, Gardnerville, NV 89410

775-781-3704 www.carsonvalleyland.com dpwtigers@hotmail.com

Sales Across Northern Nevada Have Picked Up ... Where Are The Prices?

Pricing your home is still a very critical part of the sales process. With the increase in market activity we've seen the pricing freefall slow, but it hasn't stopped yet. Statistically, the market is still declining at about 1.5% per month. It is important to price your home right not only to get a Buyer to look at and buy it, but in order to get it to appraise right.

We have experienced, heard about and read about many appraisal problems lately regarding value. Often these are caused by the new Home Valuation Code of Conduct (HVCC) regulations that became effective on May 1^st, but not all of the problems can be attributed to out of area appraisers. Sometimes we just have to fact the fact that the home won't appraise for what a Buyer is willing to pay for it.

How can that be? Historically, the value of a home was deemed what a willing Buyer would pay and a willing Seller would sell for. If that is the case, how can an appraisal come in 5-10% below what a willing Buyer would pay and say that is the value today? If the numbers indicate the value is the lesser number, and often they do, then one must ask why a Buyer would pay more in this market. The answer is not that complex.

If a Buyer is buying a home for little or nothing down, and their payments are affordable because of the low interest rates and prices, then they are happy to make the deal. They aren't looking for the "steal of a deal", they want to buy their home, get their $8,000 First Time Home Buyer's credit, and move in. They aren't so keen on negotiating to the last dime.

The lender, on the other hand, is taking the risk in making the loan. The appraiser is charged with assessing the value of the home from an objective, third party basis so the lender can evaluate the risk. If an appraisal comes in $10,000 below the sales price the lender's risk is greatly increased so they won't make the loan. If it doesn't appraise you don't get the loan and you don't get the house, or your house doesn't get sold. Appraisals are all important. Yes, they can be challenged or reviewed, but that takes time and may not yield a significant result if there isn't a glaring deficiency in the first appraisal

Our advice: Pricing is critical today. The numbers have to tell the story or it won't matter how many offers you get on your property. Unless somebody is paying cash (and cash Buyers don't usually overpay in today's market) they'll need to get a loan for which they'll need the property to properly appraise. With the HVCC in place we are seeing some of the value factors that local appraisers and agents put emphasis on, i.e. - views, neighborhood amenities, etc., receiving little or no value. Without that additional "value" homes are coming in low. The opposite can also occur such as a reduction for being on a "busy" street not being identified by an out of area appraiser. These are different times and we have to look at things differently to achieve success in our collective efforts - the sale of your home.

Put your blinders and rose tinted glasses away when pricing - its time to get real if you want to get sold. The good news ... you can sell in this market!

When it comes to choosing professionals to assist you with your real estate needs... Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781-5472. carsonvalleyland@hotmail.com, www.carsonvalleyland.com

My wife got me a rescue goat as I've posted before. Buster was left in a home that was foreclosed on, our friend rescued him, and we took him in. We took him blind, hadn't seen or learned much about him before we agreed to take him. What a treasure we found! The family that left him must have been sad as he is very people friendly and dependent - was clearly loved.

Our grandsons came over for Father's Day and ended up swimming in the irrigation ditch as we got water that day. Buster followed them and just wanted to hang out with the boys.

The boys played with Buster, and swam the length of the ditch. They loved it, Buster loved it, and we are happy they can all enjoy the simple pleasures of life. It is the simple pleasures that create the biggest joy and longest lasting memories in life.

Our grandsons swimming in the irrigation ditch ... it is a big part of why we bought our property. And Buster the goat ... he enjoyed getting into the pasture to sample next winter's groceries while he played with the family.