Blake Roussel

12 Mortgage tips for 2012

As YourExitRealtor, I am always trying to put helpful information out there so you can make those critical decisions on whether to go ahead and purchase, or try to get a good deal and find a larger house. Here are some very helpful tips from BANKRATE.COM that I read this morning. With Interest rates staying low through this year, and the deals are out there. Why Not Take Advantage of the Current Real Estate Market?

Getting a mortgage loan has become challenging in recent years. Don't expect that to change anytime soon.

Lending standards will remain tight in 2012, but that doesn't mean you won't be able to snag a mortgage with an attractive rate. Savvy borrowers who understand the rules and prepare will improve their chances of success.

These tips will help you stay on top of your game as you try to secure a mortgage in 2012.

Study your credit

Good credit is the key to snagging a mortgage in this tight lending environment. Get copies of your credit scores and credit history from the three main credit-reporting bureaus. Study the reports carefully to make sure there are no errors or issues to resolve before applying.

Most lenders require a minimum credit score of 680 to comply with Fannie Mae and Freddie Mac’s guidelines. Federal Housing Administration loans — which are guaranteed by the FHA — allow for lower scores, but most lenders want to stay away from scores lower than 620.

Prepare before you start

Every lender requests certain basic documents when you apply for a mortgage. Don't wait for them to ask.

Have these documents ready when you walk into the lender's office: your last two pay stubs, W-2s, income-tax returns and bank statements.

Save these documents and any additional ones the lender requests in an electronic format, so you can easily resend them if anything gets lost.

Know how much you can afford

Don't rely on your lender to tell you how much mortgage you qualify for and then borrow the maximum amount. Plan your budget, and leave room for unexpected expenses. That's especially the case when you are buying a house.

Bankrate's calculators can help you determine how much house you can afford and estimate your monthly mortgage payments.

Shop around

Shopping around for a mortgage should go beyond comparing interest rates. Rates are important, but would-be borrowers must consider points, closing costs and different types of loans. Get estimates from three banks and three mortgage brokers before you decide which combination works for you.

Time is of the essence

Once you submit your mortgage application to the lender, the clock starts ticking. Make sure you quickly send in any documents requested during the approval process.

For buyers, a delay in closing the loan could kill the purchase and cost them their deposits. When refinancing, a delay could mean losing the interest rate the borrower originally locked in. Ask for an expected closing date, and follow up with the lender periodically until the loan closes. Keep in mind, some lenders close more quickly than others.

Mortgage approved? Your credit must stay put until closing

After the lender pulls your credit and says you've been approved, don't assume you've won the battle. Most lenders will pull your credit again before the loan closes.

It's wise to avoid any moves that may affect your credit. Don't apply for new credit cards or credit lines. Pay your bills on time. Don't close any accounts. Don't finance a new car. Stay put until closing.

Consider refinancing with no closing costs

You don't always have to spend money to save money when refinancing. Many lenders offer mortgages with no closing costs. No, it's not a free ride. Lenders usually make up for those costs by charging the borrower a slightly higher interest rate. Sometimes the slight increase translates into a few extra dollars in the monthly payment, and the borrower can save thousands in closing costs.

Consider a shorter-term loan

Because interest rates have been at or near rock bottom, short-term loans have become more affordable for many borrowers.

Those who have a 30-year mortgage with an interest rate of 6% or higher may be able to refinance into a 20-year or 15-year loan while keeping their monthly mortgage payments close to what they pay now. Consider this option even when the short-term loan means slightly higher monthly payments. This is your chance to pay off your mortgage more quickly.

Receive a gift? Be ready to explain it

Did your parents or in-laws give you a few thousand dollars as a gift to help out with the down payment? If so, congratulations -- but make sure you can document and explain where you got the money.

FHA loans allow borrowers to receive their down payment as a gift from a relative. For conventional loans, borrowers may receive gifts, but at least a 5% percent down payment must come from their own funds.

Borrowers receiving a gift are required to present a gift letter signed by the donor, and they will need a paper trail of the money transfer. Be ready to present statements to show where the money came from when it was deposited into your account.

Unless the money is being used for the down payment, avoid receiving large cash deposits in your bank account until your mortgage closes. Any large deposits other than your paycheck will have to be explained to comply with federal regulations.

Be persistent

If one lender rejects your mortgage application, that doesn't mean all lenders will. Most lenders follow Fannie Mae and Freddie Mac guidelines. In addition, they have their own internal underwriting guidelines, and some are stricter than others.

Ask why your mortgage was denied. Depending on the reason, you may be able to take some quick steps to improve your credit, or you might just need to try a different lender.

Appraisal isn't enough? Try again

If the home appraisal your lender received isn't enough to back the mortgage loan and you think the appraiser is mistaken, try another lender.

You can't order a second appraisal or pick which appraiser the lender hires, but you can dispute the first appraisal or apply with a different lender.

In a perfect world, the appraised value of a home shouldn't vary drastically from one appraiser to another. But you may find that it does. If you believe the first appraiser is wrong, try a different lender and hope that lender's appraiser does a better job.

Seek help

If you are behind on your mortgage or are struggling to keep up with your mortgage payments, seek counseling.

The Department of Housing and Urban Development has counseling agencies throughout the country. Homeowners can receive free foreclosure-prevention counseling from HUD-approved counselors. To find a housing counseling agency near you call 800-569-4287 or visit the HUD website.

12 mortgage tips for 2012 homebuyers

By Polyana da Costa of Bankrate.com

As YourExitRealtor I believe this is a great article that all potential buyers should read if they are considering a purchase in 2012.

What could you do with an extra $65,000.00?

Buying a house now instead of waiting a few years can Save you BIG…. Interest Rates have no where to go but up in the future.

As YourExitRealtor

I hear all the time about how bad the economy is and that people do not want to buy a house because they don’t want to chance spending the money and making a bad investment. I have also heard that people are waiting for the interest rates to drop even lower…. I say stop waiting…. Rates can go up just as easily as they could go down.

If you have the money and are considering buying a home or upgrading to a bigger one, please really consider making that move now… I will show you want you will pay at the current rates and I will show what you could be paying in a couple of years when interest rates are forced to rise to 6.5% or higher.

CURRENT INTEREST RATES…. Supplied by Lindsey Davenport at Centennial Bank in Conway, AR. If you would like more details about how to get started applying for a mortgage please giver her a call at 501-328-4688.

Conventional Rates:

30-year Fixed 3.625-3.75%

20-year Fixed 3.625%

15-year Fixed 2.875-3.0%

FHA Rates:

30-year Fixed 3.5%

15-year Fixed 2.875%

VA Rates:

30-year Fixed 3.5%

USDA RD Rates:

30-year Fixed 3.5-3.625%

Man these rates are amazing…. USDA RD rates of 3.50% on a 100% financed LOAN…. WOW…

If you are looking to refinance or apply for a new mortgage give Lindsey Davenport at Centennial Bank a call.

In the Future if interest rates go up to 6.500% on a 30 year mortgage you are paying 40%more in interest on a home…. Let me show you what 40% more looks like in a comparison.

JAN 2012 30 Year Fixed FHA loan Future Date 30 year Fixed FHA Loan

Interest Rate 3.500% 6.500%

Loan Amount $100,000.00 $100,000.00

Total Difference in payment = $189.03 Per Month.

X 12 months = $2196.36 a year.

X 30 Years = $65890.80 over life of the loan.

*Principal and Interest payment only. Taxes, Insurance, and PMI not included.

What could you do with an extra $65,000 dollars?

I always provide information to my clients, so they can make a Sound Financial Decision. I am here to educate you the public along with my clients. I don’t want anyone to get taken advantage of or to miss out on some really great deals now. I am here to serve YOU.

MY MOTO FOR 2012

“Better Educated to Better Serve You.”

So if you have any more questions or comments about the above material… Contact

LETS START 2012 OFF WITH A HUGE BANG!

YourExitRealtor would first of all like to thank you for all the referrals and business in 2011….

Now that being said…. Lets get the new year started off on the right foot!

Over the past couple of months I have taken the challenge to become a better trained and educated realtor. To better represent my clients. So here is what I have been training for your benefit! I will not be one of those realtors who can not answer my clients questions. I make a promise to all of my clients and that is 100% CUSTOMER SATISFACTION.

Short Sale and Foreclosure Resource Certification Completed

REBUILD USA FHA 203k Specialist Certification Completed

And I have currently started my Residential Construction Certification, Certified Residential Specialist, and my E-PRO certification.

My Short Sale and Foreclosure Certification allows me to help my clients navigate the ever changing world of short sale and foreclosures. I love to see my clients get a great deal on a home and that is why I truly believe that buying a short sale or foreclosure can be a very smart decision if you have a REALTOR who knows what they are doing. If you are interested in some of these Great Deals go to www.arkansasforeclosurelist.info a website of mine that you can feel out exactly what you are looking for in a home, and I will set you up on an automatic email update whenever a new short sale or foreclosure is listed. Don’t miss out on some really good deals.

My FHA 203K Specialist Certification will help all buyers that are interested in buying a foreclosure property and doing a little remodel work on it. In fact you don’t have to buy a foreclosure to qualify for this loan. If you qualify for a basic FHA mortgage then you qualify for the little known FHA 203K loan. Which give buyers the ability to purchase an older home and do a little bit of a facelift on the property. Best thing is the remodel cost can be financed into the mortgage!! If you would like more information on how the FHA 203K Loan works please go to www.rebuildusa.com or email me from my website www.yourexitrealtor.com

I make it a point to be one of the most educated Realtors in my market place. Here is what one of my last clients said about my services.

“Blake was very knowledgeable in both the sale of our home and the purchase of our new home. He was always very quick to respond to any questions we had and kept us informed at all times. I am not sure what he could have done better to serve us.”

Todd & Sarah

I am here to answer any questions you might have about buying or selling a home in Central Arkansas.

I look forward to serving you.

What is your home’s value?

Looking for a Great Deal on a Foreclosure or Short Sale?

Having Trouble Making your Mortgage Payment? Need Options?

Your Exit Realtor of Central Arkansas- Blake Roussel Realtor

Buying and Selling a home is a huge Financial decision, Blake Roussel with Exit Natural State Realty is your Real Estate Professional for Conway, Little Rock, Maumelle, Benton, Bryant, Jacksonville, Cabot, and Searcy, Arkansas. My goal is to walk you through each step of the buying or selling of your home, so that we have a smooth transaction. Call Us today 501-230-6082. Customer Satisfaction is our #1 GOAL, we are here to serve you throughout this process. Check out what my past clients have said about our Customer Service. We look forward to hearing from you.

“Then Difference between FOR SALE and SOLD”

FORECLOSURE IS NOT YOUR ONLY OPTION…

· 1 out of 8 homeowners is facing a hardship.

· 4.5 million Homeowners owe more than their home is worth.

· 10 million homeowners will fall into default in the next 36 months.

These are some sobering facts. If you are a homeowner and you feel you might be falling behind contact me at www.yourexitrealtor.com.

As YourExitRealtor I want to stay on top of ways to greater serve my clients and help the general public in buying and selling real estate.

2 months ago I receive my Short Sales and Foreclosure Resource certification from the National Association of Realtors. I believe this will help me better serve people who might not be in foreclosure but have missed payments, and have the potential to fall further behind on their mortgage.

Let me explain what a Short Sale is. A short sale is where you list the house, and sell the home for below what the balance of the mortgage is. For more details please go to my website www.yourexitrealtor.com .

People who aSHORT SALE can help…

· People 30, 60, or 90 days late on their mortgage payments.

· People who owe more on their house than what it is worth.

· People who have suffered a hardship (divorce, death of a spouse, loss of job, health problems, etc.)

Who benefits from aSHORT SALE?

· Homeowner- saves them from a foreclosure.

· Lender- gets better price for the home.

· Neighbors- No collateral damage. Low home values.

Foreclosure Timeline

Judicial Foreclosure

1^st – 3^rd missed payments- Lender calls the home owner to ask why no payments have been made.

4^th missed payment- lender hires an attorney.

5^th missed payment- notice of default is filed

6^th missed payment- auction date will be set.

It usually takes 5-7 months to complete.

NON-Judicial Foreclosure

1^st – 3^rd missed payments- Lender calls and sends late payment notices.

4^th missed payment- Lender demands a Cure to the behind mortgage, and files a notice of default.

After the notice of default there is usually a 14 day lead time to the auction.

Short Sale Offer Timeline

A short sale is not a cut and dry offer and acceptance like a normal real estate transaction. To close a short sale property it takes 3-4 months.

First you submit the offer to the seller who in turn submits it to the Lender.

The lender will then review the offer (could take up to 60 days)

Once the lender has countered the offer or accepted the offer, the buyer generally has about 30-45 days to close the transaction.

Make sure to note that the bank will not do any repairs of the property since they don’t own it technically.

Why People don’t ask for Help

The main reasons people don’t ask a realtor for help selling a house that is going into foreclosure is….

1. They are embarrassed.

2. They are ashamed at what they let happen.

3. They are in denial

4. They don’t want to appear desperate.

Every person is different and will have a different reason why they didn’t ask for help. Most people believe that once you miss several payments there is no other option beyond letting the house go into foreclosure. That is why I am here to say that there are more options. Please don’t be too proud to ask for help. If you have the ability to short sale your home you can limit the damage to your credit score, and save some face by selling the property rather than giving it back to the lender.

I am here to help. If anybody reading this has experienced a hardship, and is having trouble making your mortgage payments please ask for help. By making an effort the bank will be more apt to let the small things slide.

www.yourexitrealtor.com for more information on how to get help when you are facing foreclosure.

What does this down turn in the economy mean for the local housing market?

So as I sit at home every evening and watch the news saying that the country is possibly heading for a second recession, one thought goes through my head “Here we go again”.

For the past 3 years our local market has a roller coaster of activity up, down, down, down, up, down! The Little Rock Metropolitan area which includes: Benton, Bryant, Little Rock, North Little Rock, Maumelle, Mayflower, Conway, Cabot, Jacksonville.

What is going on currently…. Well in talking with my trusted lenders 3 weeks ago they had files stacked high on their desk and were happy as can be with all the refinances and new loans coming into the banks. As of last week when I stopped by to say hello to them, I could actually see their desk. I was told that the flow of people wanting to refinance and get a new mortgage slowed to a trickle.

As YourExitRealtor I ask myself what is stopping people from buying homes. That is one of the easiest things to answer. In fact I have multiple answers.

1. Lack of Job security.

2. What is the market going to do in the future.

3. Lack of credit.

4. Banks have tightened their lending requirements.

5. FEAR!

And these are all very legitimate issues. In fact many Realtors in our area are probably feeling the same thing when it comes to Job Security! I know I have watched my business drop a little. I will be the first to admit that the future of the Real Estate business is a scary thought if I just concentrate on next year, but I am here for the BIG Picture.

And in the BIG PICTURE here is the Reason I think people that can afford to buy a home should highly consider it.

1. Interest Rates are BELOW 4%

2. Sellers are more negotiable on price.

3. There is plenty of inventory out there. (BUYERS MARKET)

4. IT IS CHEAPER TO BUY THAN TO RENT…. (Email me I will show you)

So there it is. YourExitRealtor’s assessment of the local real estate market. Some may agree or even disagree, but I can tell you one thing for certain. The National News does not completely reflect the Local Trends.

Here are some STATISTICS for the Past 3 years for the Little Rock Metropolitan Real Estate Market.

Year 2009 2010 2011

YTD Sales (Jan 1 – Sept 23) 4448 4400 3955

Avg List Price $162,000 163,000 166,000

Avg Price Sold $156,000 158,000 159,000

Avg. Days on Market 77 69 90

If you have any questions about buying or selling a home please don’t hesitate to go to www.yourexitrealtor.com and email me. I am here to help you in any way possible.

It is my belief that the market will turn around in the future. The only question is how long? My gut feeling is 2 years we will start seeing an improvement across the board. But if you can afford to buy a home, you will get an amazing interest rate and a great deal on a home in this current market. Investors are buying houses left and right, because they know they are getting good deals. Don't let all the great deals and interest rates pass you by.