Darrell Walters

Forbes.com recently announced its Best And Worst Cities To Buy A Home Now and it's list may surprise you.

The list is based primarily on a city's capitalization rate. The capitalization rate or "cap rate" is the ratio between net operating income from annual rent and its cost of property taxes and insurance.

The list to buy includes:

• Atlanta, GA. With a cap rate of 4.6% and home prices that have fallen 22 percent, purchasing in Atlanta could be a good deal.
• Nashville, TN. Rents in Nashville remain high while home prices have fallen by only 3 percent.
• Philadelphia, PA. Housing prices have declined only 4 percent and rents have remained relatively high.
• Phoenix, AZ. Hit hard by the downturn in the housing market, homes are relatively affordable.
• Chicago, IL. Rent in Chicago is fairly expressive while buying can be a bargain.

For more information about your local market, contact me for a real estate agent referral.

With unemployment high, many homeowners facing foreclosure are looking to loan modifications for assistance.

But with increase interest comes loan modification scams and the FTC and the Treasury Department's Financial Crimes Enforcement Network are going after scam artists like never before. Treasury Secretary Timothy Geithner vowed,"we will shut down fraudulent companies more quickly than before..."

To avoid becoming part of a loan modification scheme and to better prepare for your loan modification, check out these tips:

1. Don't pay upfront. Don't give money in advance of services provided. Only pay once the service has been provided.
2. Check out the company. Do a background check on the loan modification company. Contact the Better Business Bureau, FTC, and your local state regulators. For Georgia, contact the GA Dept of Banking and Finance.
3. Pay your lender. If a company suggests that you should pay them and they will pay your lender, keep your wallet in your pocket. More than likely they will pocket the money and your payment will not be made.
4. Don't hire a company pretending to be part of the government. If you need to contact a government agency for your loan modification visit HopeNow.com.
5. Beware of false advertising. If it sounds too good to be true, it probably is. The FTC recently sent warning letters to loan modification companies claiming 97% success rates.

There are programs for legitimate loan modifications such as the Home Affordable Modification Program. Also, free loan modification advice is available online at HUD's website and the Hope Now Alliance. Hope Now is an alliance of mortgage industry professionals that provides free foreclosure prevention assistance.

As mortgage rates are at historical lows, people are taking full advantage of the opportunity to refinance or purchase a home.

Because of this, the amount of time between the application and the closing is getting longer. One way to help make sure the process runs smoothly is to make sure that you have the following documents ready to go:

1. The most recent month's worth of paystubs. The stub should include your social security number and your year to date income.
2. Proof of income received, if any, from a secondary source such as alimony or VA benefits.
3. The previous two years W-2s and federal tax returns with all schedules and attachments.
4. The most recent retirement or investment account statements, including any real estate owned.
5. Explanation of any recent credit inquiries and statements if any new credit was received from those inquiries.

Depending on underwriting requirements, all of these items may not be necessary but having them available will help save time during the process.

For your free mortgage consultation and to determine what items you will need for your loan approval, email me or call 678.648.5626.

Are we seeing more good news that the economy is starting the recovery process?

The monthly report on the jobs market showed that over 500,000 jobs were lost, but the rate of loss is slowing down. The amount of jobs lost was the lowest number since last October.

Combine this with the fact that home sales are increasing and consumer confidence is up, economists are saying that we may be turning the corner to economic recovery.
Consumer spending increased 2.2 percent as retail sales have picked up with home buyers purchase new appliances and furnishings for their home.

John Ryding, chief economist at RDQ Economics, states, "The evidence is growing that the recession may be bottoming out in the second quarter."

As Wall Street adjusts their expectations on the economy, mortgage rates remain unsteady. Typically when the stock market is improving, mortgage rates increase to attract more buyers to mortgage bonds. However, with continued government intervention with the purchase of mortgage backed securities, there was actually a slight decline in mortgage rates late Friday.

For an up to date look at mortgage rates and your free consultation, email me or call 678.648.5626.

Source:
More light pokes through economic clouds
MSNBC
Image Source: The Wall Street Journal Online

The latest Bankrate.com Mortgage Trend Index has been released the analysts saying that mortgage rates will probably stay where they are -- or they might climb.

Here are the predictions for mortgage rates in the next 30 days:

· 55% predict mortgage rates will increase
· 09% predict mortgage rates will decrease
· 36% predict mortgage rates will remain unchanged

Chris Sipe of Mason Dixon Funding states, "Mortgage bonds are a good "flight to safety" investment during times of financial and geo-political uncertainty. However, as the economy reverses, stocks will pull investment dollars away from bonds sending rates higher. There is now talk of the recession reversing by year's end, and whether right or wrong, just the notion could lead to rates rising."

With the rise in gas prices, the stock market gaining, and Summer just around the corner, mortgage rates should increase. The Fed's continued purchase of mortgage backed securities has helped rates stay in a tight range around 4.750 and 5.250 percent.

Remember this mortgage trend index is for conforming rates only. For your free mortgage consultation and information regarding current mortgage rates email me or call 678.648.5626.

Source: Bankrate.com