Glen Russell Real Estate Professional Collegeville, PA

A wonderful article i read in "The Reading Eagle" sheds some light on Federal Housing Administration Home Loans in terms everyone can understand.

The FHA, created in 1934, does not directly lend money to buyers or set interest rates. It ensures mortgages through the US Department of Housing and Urban Development, making it easier to qualify - since lenders know that if a borrower defaults, they will still receive payment.

Mike White - Senior Vice President at VIST Financial says that now is the time to take advantage of the government insured lending program, which offers perhaps the lowest down payments available.

Though used most often by low-to-moderate income buyers, there are no income limit qualifications. "The Process is virtually identical to what we refer to as a conforming (regular) loan." "The biggest reason for using FHA financing in today's enviroment is that it allows someone to put as little as 3.5% down. So it's a program specifically designed for people who have limited funds for down payment."

Prepayment penalties are never enforced on FHA-insured loans, and borrowers can refinance at any time without penalty.

To qualify for an FHA Loan, buyers are evaluated in 5 areas...

• MUST HAVE A STEADY EMPLOYMENT RECORD; 2 YEARS WITH THE SAME EMPLOYER IS IDEAL.
• INCOME MUST BE SUFFICIENT TO HANDLE ANY OBLIGATIONS.
• ASSETS MUST SHOW THAT BORROWERS HAVE SUFFICIENT FUNDS FOR THE DOWN PAYMENT AND CLOSING COSTS.
• COLLATERAL MUST SHOW THAT THE VALUE AND CONDITION OF THE PROPERTY ARE BOTH ACCEPTABLE.
• A CREDIT REPORT MUST BE "AT A LEVEL THAT SHOWS A WILLINGNESS TO REPAY DEBT, BASED ON HOW YOU'VE HANDELED OBLIGATIONS IN THE PAST.

FHA loans' appeal is two-fold. In addition to offering a low down payment, the program is more lenient on credit standards than conventional financing.

White went on to say - " If you have an average credit score, FHA may be a more attractive way to go. Conventional Financing has gotten into risk based pricing, which means that as your credit score decreases, the cost of your financing goes up. FHA has not gotten into that"

The best way to begin the process of buying a home with an FHA loan is seeking pre-approval. Borrowers will then complete an application with an approved FHA lender, where they will need to provide contact information of employers for the past 2 years, names and account numbers of all assets accounts, and residency addresses for the past two years.

FHA LOAN HOUSE APPRAISAL BASICS

The Dept of Housing and Urban Development requires appraisals for all FHA insured mortgages, meauring value to make sure is worth it's selling price. Appraisals also protect lenders by making sure homes are safe and sanitary. If repairs are required, buyers receive a list from their lender, and the seller is typically responsible for overseeing any necessary work.

Among The FHA's Requirement

1. There must be ventilation in crawl spaces and attics.
2. All windows and doors must have weather stripping.
3. Ceilings and Outward facing walls must be insulated, as must be the air conditioning, heating and ventilation pipes and ducts.
4. All cracks and openings on the interior and exterior of the home must be sealed.
5. Each Bedroom must have a smoke detector.

ANY QUESTIONS / COMMENTS - FEEL FREE TO CALL OF EMAIL ME ANYTIME!!

610.792.3000 - GLEN@GLENRUSSELL.COM

MAKE IT AN AWESOME DAY!!!

GLEN RUSSELL

From the KW Wesite: " RED (Renew, Energize and Donate) Day is a new Keller Williams Realty service initiative dedicated to improving our local communities. We are asking all Keller Williams Realty associates in the US and Canada to donate their time on May 14, 2009 to renewing and energizing aspects of their local communities. Because of her constant commitment to the culture of our company, this day has been dedicated in honor of our Vice Chairman, Mo Anderson. "

Keller Williams in Limerick PA decided to spend their Red Day @ The Meridian Home - an all girls place of retreat for displaced teenagers. The home is run by Baptist Children's Services. Currently there are 10 girls of all ages living there.

The home was in bad shape when we got there, however - it is a much better way of living for some. The Keller Williams team truly stuck together and worked themselves to the bone for a common goal.

When those girls got out of the car and saw what we were doing / had already done - THAT feeling is why we do the things we do. The happiness and gratefulness they showed was humbling. The Glen Russell Team was PRIVILEGED to be involved in such a selfless event.

Some of the things that were done were: CLEANING CLEANING CLEANING, Power Washing the Deck/Porch/Siding, Planting flowers & Landscaping, Donating Curtains, Decorations, Quilts, Toiletries etc, Cutting Hair (She is a Professional!!) - A scrap Booking Station, Lunch & Dinner Provided by: BAIRD'S CATERING, & So Much More!

By the end of the day we were tired, dirty & sore...BUT - The Girls were Happy, The Glen Russell Team was Happy, & Keller Williams as a whole was Happy. All and All - I'd have to say it was a pretty awesome day.

THOUGHT OF THE DAY: You Don't Have to be Part of Keller Williams, To "GIVE WHERE YOU LIVE."

Make it an awesome day!

Glen Russell 610.792.3000

Glen@GlenRussell.com

www.TheGlenRussellTeam.com

For sellers and agents alike - there is nothing worse then getting 1. No feedback or 2. The unhelpful - "Priced Right - Showed Well - No Interest" Feedback.

I came across Elizabeth Weintraub's Blog on www.about.com and the post makes great sense and is extremely helpful. Here are her 7 questions that you can use to get the best and most effective buyer feedback.

1. What Is Your Overall Impression of The Home?

• Buyers will tell you the truth but "pepper" it with compliments they think you want to hear so as no to offend anyone.
• They might use "weak" adjectives such as "It's nice" or "I liked it" - You must probe deeper!
• Whatever the feedback is it is important to not become combative or argue with the buyer. Simply thank them for their input & for viewing the home.

2. How Do You Compare This home With Others You Are Considering?

• This will make the buyer talk about the "type" or home they want to buy in more depth - and how this home stacks up to the "ideal" home they want.
• This may also help you learn facts about other homes currently on the market / Your competition
• You may learn that your home "feels larger" than others similar to it in square footage, or that a pro is that your home has better exposure to the sun... etc

3. What Do You Like Most About This Home?

• The home may have attractive qualities that you have forgotten about or did not think made much difference to a buyer.
• If a buyer seems to rave about a certain aspect that you don't understand- feel free to ask why that is so important to the buyer.
• For example - if a buyer says "The Kitchen was beautiful" Ask why they feel that way about it, you won't learn that the kitchen skylights are a top selling feature, which you can mention to other buyers who might not notice them.

4. What Do You Like Least About This Home?

• The Buyer might mention the color of a room, or maybe the carpeting needs to be replaced. Then you ask the next buyer what they think of the carpet and the walls.
• After you gather enough opinions and hear the same drawback comments over and over, you might want to consider requesting a paint job, or new carpets be put in. Or offering a "decorating allowance" in your marketing materials.

5. What Is Your Opinion On The Price?

• If a buyer says the price is too high, ask if it's in the buyers price range. Sometimes buyers can't afford the price you are asking - but want to look at the home regardless.
• Ask how the price compares to other homes in that price range to determine the basis for the statement that the price is too high.
• Rarely will a buyer tell you that the price is too low. If everyone is saying the price is too high, maybe you need to adjust it.
• Always ask buyers what price they "think" it should be, just to get an idea.

6. How Do You See Yourself Living In This Home?

• If buyers start telling you where they would put the living room sofa, you most likely have an interested purchaser. You can discuss the various ways you have arranged furniture over the years.
• However, if the buyer says " I don't", ask why. It might be a simple answer such as the buyer wants a 3 Bedroom with office space, but you have no extra room for an office.
• You may be able to point out another place in the home where a buyer could set up an office, which may not be readily available to most people.

7. What Would It Take For You To Buy This Home Today?

• When you ask a loaded and bold question like this, your buyers just might disclose their motivation to buy and explain how your home meets or does not meet their intentions.
• You will learn how your can improve the appearance of the home and how to meet buyer's needs.
• A buyer may need to move within 2 weeks and mention that only vacant homes are of interest; if so, you can assure the buyer that you would be able to offer a fast closing in exchange for an offer today.

Make it an awesome day!

Glen Russell 610.792.3000

Glen@GlenRussell.com

www.TheGlenRussellTeam.com

I posted a blog about a week ago informing people of the upcoming - Juvenile Diabetes Research Foundation International - Hope Gala - "Derby For A Cure."

It has now come and gone & I am happy to announce that we raised a wopping $75,000!!!

Again it was held at The Reading Country Club on May 2nd. The Country Club did an amazing job taking care of all the guests. The theme this year was "Derby For A Cure," - so everyone dressed up & most of the women wore their derby hats.

The entire event was a great time. Everyone enjoyed themselves & all the while we were raising money for a wonderful cause. It truly was just one of the many ways Keller Williams gives back.

I am so gracious to be part of a team/company that is so involved in the community & helping all who need it.

Speaking of Helping Out - I am now off to lend a hand in Keller Williams Limerick "Red Day." We will be spending this rainy day at a home for displaced teenagers - planting flowers, cleaning from top to bottom, dontating things like blinds, toiletries, clothes, a stove, & providing hair cuts for all the girls. It should be a fantastic day (despite the weather).

Make it an awesome day!!

Glen Russell

610.792.3000

Glen@GlenRussell.com

www.GlenRussell.com

2533 PERKIOMEN AVENUE - MOUNT PENN, PA - 19606

THIS HOME MUST SELL NOW!!

Currently listed at $94,900 & Move in Ready!!

BRING ALL OFFERS! THIS HOME IS PRICED TO SELL! A Beautiful Brick 2 Bedroom, 2 Bath Townhome with Finished Lower Level or Possible 3rd Bedroom, Dazzling Hardwood Floors in The Large Living & Dining Room, & Updated Kitchen w/ Breakfast Nook. Upstairs offers 2 Fabulous Bedrooms both with Hardwood Floors & Plenty of Storage Space, & a Full Bath w/ Jetted Tub. The Finished Lower Level shows endless possibilities with yet another full bath & Laundry room. Outside features Off Street Parking for 2 Vehicles, & an Oversized Covered Porch. This one Absolutely Will Not last!

For a Free Recorded Message with more Information - Call our Toll Free Information Line at 800.470.2232 and use ID# 5057

For More Pictures - please visit our website at WWW.GlenRussell.com

THE OPEN HOUSE WILL BE HELD ON SUNDAY, MAY 17TH FROM 12:00PM - 2:00PM. ALL ARE WELCOME!!

Hope to see you there!!

For questions, directions, or anything at all - please never hesitate to call!

Make it an awesome day!

Glen Russell 610.792.3000

WWW.GlenRussell.com

Glen@GlenRussell.com