Brentwood TN Real Estate/Homes - Vanessa Stalets REALTOR®

Brentwood Tn Real Estate

Update on more pricing hits/changes with credit scores. Some lenders rolled out these changes last week, some are rolling them out this week and so on, but it is industry wide in the coming.

Conventional Loans - FNMA/FHMC - higher add ons to rates for credit scores 620 to 699

FHA - Govie Loan - Pricing hits now on govie - below 600 score - cut off for most investors unless you receive an automated approval is now 580. Good news of this change is some pricing improvement on the higher credit score buyers doing FHA financing now.

Investor loans are being hit with higher rate add ons then previously and stated income is tightening even more and cutting LTV's with not offering as many exceptions.

97% conventional is becoming the max on a one loan within the industry due to the Mortgage Insurance changes I mentioned coming back in February.
*Information courtesy Tonya Esquibel, WR Starkey Mortgage, Franklin TN*

So again, just an "industry" update to give you the heads up.

Vanessa Stalets
Brentwood Tn Real Estate

RE/MAX Elite

615-957-6333/615-661-4400

Brentwood TN Real Estate

Maybe- just maybe things are getting better, finally! In the last 2 weeks I have put 2 new listing on the market, have a contract on one and have 2 more coming in this next week! I have 3 buyers who are at various stages in the process, none with contracts yet, but maybe sometime soon. I am getting a lot of traffic on my web site and have been maintaining my page 1 Google search status for Brentwood TN Real Estate, my area search terms. Feast or famine seems to be the way of the business normally but this sure has been a wild ride the last few months!
How are things where you are???
Here's hoping we have a bit of "feast" time coming!

Brentwood TN Real Estate

Brentwood TN Real Estate

Mortgage bond prices fell last week pushing mortgage interest rates considerably higher. Most of the data was bond friendly showing signs the economy continued to struggle. Unfortunately Fed warnings of creating "conditions for sustainable inflation over the long term" rekindled inflation concerns. Inflation erodes the value of fixed income securities and generally leads to higher mortgage interest rates.

For the week, interest rates on government and conventional loans rose by over a full discount point.

The employment report Friday will be the most important event this week. The potential for market volatility is high surrounding the ISM Index and factory orders data.

Economic Factors

Economic Indicator Release Date Time Consensus Estimate Analysis

Construction Spending Tuesday, April 1, 2008 Down 0.9% Low importance. An indication of economic strength. A significant decrease may lead to lower rates.

ISM Index Tuesday, April 1, 2008 48.2 Important. A measure of manufacturer sentiment. A larger decline may lead to lower mortgage rates.

Factory Orders Wednesday, April 2, 2008 Up 0.7% Important. A measure of manufacturing sector strength. A larger decrease may lead to lower rates.

Employment Friday, April 4, 2008 Unemp. @ 5.0%, Payrolls -40k Very important. An increase in unemployment or a large decrease in payrolls may bring lower rates.

Liquidity

In years past a borrower would visit their local savings and loan to obtain a mortgage. The Loan Officer at the bank would approve the mortgage and fund it with cash reserves from the vault. This system worked well until the bank ran out of money to lend. Borrowers came to the S&L looking for a loan and were told to come back when a current mortgage paid off. What the bank needed was a way to sell the loans they made freeing up the capital to lend to new borrowers. This way they could lend the "same" money over and over, earning an income from servicing the loans and assisting the community by offering a near limitless pool of money.

To address this issue, FNMA and GNMA were established. The goal is to provide cheap mortgage money to prospective homeowners and a high quality bond for the investment community. The bond or Mortgage Backed Security (MBS) take mortgages with similar risk characteristics and pool them together. Investors in the MBS's know ahead of time the return they are going to receive, much like a Certificate of Deposit. To ensure the performance of the bond, each mortgage is underwritten to specific guidelines.

During the recent real estate boom underwriting guidelines were relaxed giving way to a whole new menu of mortgage products such as 100% financing. In addition, to streamline the influx of applications, income and asset verification took a back seat to a borrower with strong credit. With housing prices rising rapidly, the property could be sold to cover the note and foreclosure costs if this occurred. This cycle worked well until the price of houses moderated in 2006. Once the housing market began to cool and prices moderated, foreclosed homes were being sold for less than the notes. To add insult to injury, the loans underwritten to the looser guidelines did not perform as hoped. With the value of the collateral in question (falling home prices) and the future performance of the borrowers unknown, investors' appetite for this risk has waned. To attract investors in this environment, rates had to increase.

Unfortunately the liquidity issues associated with Alt A and subprime loans carried over to more secure AAA GNMA and FNMA loans. Sellers of AAA MBS's are finding it more difficult to find buyers. Many analysts believe the reaction has been too severe. Sanity will eventually return to the markets and AAA pricing will come in line with risk characteristics. Unfortunately it may take some time for this to occur. Be cautious during these times of extreme market volatility.* Info. courtesy Tonya Esquibel, WR Starkey Mortgage, Franklin TN*

Vanessa Stalets
Brentwood TN Real Estate

RE/MAX Elite

615-957-6333/615-661-4400

Brentwood TN Real Estate

For most people, the prospect of landscaping fills them with dread as they contemplate the work/effort associated with taking care of plants, gardens and trees without spending a lot of money to have someone else do it. There are people who enjoy working on their landscapes for hours (and this is commendable), and there are those who wish to have as little trouble, and spend as little money as possible in their home's yard. This is also fine. Luckily, for those who want to have a beautifully appointed home, it is possible to do so with low-maintenance landscaping. By carefully choosing plants that need little care, it is possible to have a great looking home and yard while still saving time, money and attention to its upkeep. The keys are good plant selection and the proper establishment of those plants.

The first thing to do is choose plants that require very little maintenance. For those who dislike raking leaves or pine needles, trees that frequently shed are not for you. Plants like spruce and Alberta pine are moderate growers, and they do not drop leaves or needles as often as other trees. Avoid fruit-bearing plants that make a mess. Crabapple trees with resistance to apple scab hold their fruit well (even against birds) and are not prone to summer defoliation. Flowers such as rhododendrons, pansies, tulips, and wildflowers do not need much care. Most bulb flowers (Irises, Tulips, Crocuses, etc.) are fairly self-sufficient, as they store up nutrients in their bulbs. Choose perennial flowers that bloom every year rather than annuals that last one season, die, and then require the purchase of more. Shrubs and low bushes (like Mugo pine and Juniper) are also hardy varieties that do not require much attention and make very little mess. Holly is also a great low maintenance pick for the Brentwood TN area!

When you choose plants, search out quality plants. Find reputable nurseries and suppliers. This saves money in the long run, as you will not have to buy new plants when the first ones do not survive their plantings. Planting is a stressful time for any plant, and if is already weakened by disease, environmental issues, or pest problems, then it may not recover. Choose plants that look vigorous and healthy, and check them closely before purchase for things like pest problems and disease. Some home improvement warehouses, like Home Depot and Lowe's, actually offer guarantees on their plants, as do many nurseries: these warranties last anywhere from 6 months to 1 year. Purchase from a store or nursery that offers these guarantees at no extra cost, and then if you encounter a problem down the road, your place of purchase will replace the ailing plant for free.

One of the best things that you can do to keep your landscaping costs down and your involvement in it minimal is to choose plants adapted to the growing conditions in your area. A visit (usually for free) to the local master gardener for Williamson county and Brentwood (http://www.wcmga.net/) will allow you to find out which plants grow best in your area. Keeping up your landscape is much easier when you are not fighting nature to ensure the survival of your plants. Choose native plants, or choose plants that are native to a climate similar to the one in which you live. Ornamental grasses, trees, and shrubs that grow well in your climate and with the conditions of the soil in your yard make excellent choices for low-maintenance landscaping.

Finally, it is imperative that you follow sound planting practices when you begin your landscaping project. Any initial landscaping will take a certain amount of work, but once you complete the proper installation of plants, you will find that, if you have chosen wisely, they need very little of your attention. When planting, it is best to make the hole shallow and wide. Do not plant your flowers, trees or shrubs in holes deeper than the planting container. If the soil is of a harder variety, you should dig the hole deeper than you want (the hole should be two or three times as wide as you need it in any case) and then fill in with a planting mix or loosened soil to the desired depth. This will make it easier for your new plants to take root. It is important to remember that you will need to ensure adequate water at first, until the root system is fully developed.

Having a gorgeous yard can be done without as much stress and fuss as you may think!

Look around, find a good nursery and go get your hands dirty! You just might find out you love it!

Vanessa Stalets
Brentwood TN Real Estate

RE/MAX Elite
615-957-6333/615-661-4400

Brentwood TN Real Estate

So President Bush gives some money out, not much, but some.
The FHA limit is raised, and tax breaks are implemented for PMI.
And then what? PMI companies have decided not to underwrite over 97% loan to value and the PMI payments are like a car payment.
100% mortgages are nearly impossible to find and credit scores under 680 make you Persona non Grata for a loan. And exactly where is the help I keep hearing about? Have I missed it by blinking? Did it rush past me when I turned my head? Maybe so. This problem is deeper and wider than the band aid being applied to a arterial laceration. In layman's terms, "she's going to blow Captain!"

The buyers seem to be trying to come in and sellers are getting a little of a clue, now show us the money y'all! The FED rate does squat for my buyers, it looks fabulous in the newspaper though. We need help yesterday, will we get it tomorrow or still be digging out 2 yrs from now?
Stay tuned and see~

Vanessa Stalets

Brentwood TN Real Estate

RE/MAX Elite

615-957-6333/615-661-4400