Volatile Rates

If you monitor rates on our website you will notice today that rates spiked! Rates are extremely volatile right now and today was brutal. Good news came out today that job losses were 247,000 in July. Why is this good? Well it really isn't, but it sure beats the 443,000 they were expecting. This news caused MBS prices to plummet! MBS prices as most of you know influence mortgage rates and thus here we are. We are at the highest rates we have seen for a long time. With that being said, 5.75% is still great, but everyone wants the high 4's or low 5's that have been the norm for awhile. Be sure to contact one of our loan officers for a more tailored quote for your situation. Your quote will be specific to you and there are some things you can do if you want your rate lower. Don't panic because next week were surely are poised for a rebound. Rates actually got worse everyday this week, so something is bound to happen for us soon. If you haven't locked yet and you close pretty soon, get on the horn with your loan officer and decide how to act. If you have some time, then I would relax and just keep in good contact with your loan officer so you are on the same page. When we do rebound you can take advantage and this little spike will not have hurt you.

On a side note you I wanted to comment briefly on your blog and website. We have been swamped lately and we are still working through numerous kinks on our new website design. Once these are done and everything goes live, it is our hope to keep the blog, newsletter, etc more frequent. With the new site our newsletter may not be as necessary and we may shift away from it since the new site will do a much better job at keeping everyone in tune with the market.

Have a great weekend!
Flat Branch Home Loans, Inc.

Good Article " The Market is showing signs of life"

I read a good article today that appeared in The Columbia Tribune. It is titled "The Market is showing signs of life!" This is music to all of our ears after a few tough years. Notice it says "signs" which means we are not out of the woods yet by any means. However, it sure beats the constant negativity that the media portrays. We all know times have been tough, but Columbia has stayed strong for the most part. We have had our share of struggles like most communities, but Columbia is tough. Follow the link below to read the story

http://www.columbiatribune.com/news/2009/jul/14/market-is-showing-signs-of-life/

Local realtor Sean Moore is featured and some good points are brought up by him and Carol Van Corp , CEO of the Columbia Board of Realtors.

We have had a great year as well and I know we are all working hard to keep the momentum going. Congrats to everyone and please keep it up!

Brought to you by:
Flat Branch Home Loans, Inc.

HVCC News!

We have all no doubt already run into flaws with the HVCC Legislation already in place. I know I have. I could go on and on about my views, but I wanted to report that some new legislation has been introduced. Now this isn't in effect yet, but there has been enough fight by the NAMB and NAR that people are starting to take notice. Representatives Childers (D-MS) and Miller (R-CA) introduced legislation requesting an 18 month moratorium. This will be great and hopefully this will allow enough time for either the kinks to be worked out or the HVCC in its original form scrapped altogether. The HVCC was put into place for good reason. However, the problem is that it was rushed and the full ramifications were not thought out. NAMB President Marc Savitt was quoted as follows

"In the period of time since its implementation, the HVCC has increased costs to consumers and decreased the quality of appraisals and has provided a lever of uncertainty in an ailing housing market. Tens of thousands of consumers have already been robbed of their opportunity to enjoy historically low rates by Attorney General Andrew Cuomo's rule."

You can view the full NAMB press release here.
Everyone keep your fingers crossed and hopefully this will get done!

Brought to you by:
Flat Branch Home Loans, Inc.

Comparing Closing Costs

As most of you are aware, interest rates have taken a beating lately. This has left numerous people that are already in the purchase or refinance process a bit frustrated. Most people I encounter have found us through a referral source that was based on our reputation for providing our borrowers with competitive prices to go along with great service. With this being the case the borrowers seem to be less concerned about rate and fees because we have come highly recommended. Now don't get me wrong, there are still many shoppers out there and there is nothing wrong with it. This type of volatile environment naturally breeds more shoppers as well. When rates are stable the shopping process for a borrower is a bit easier. When rates are super volatile it can be quite a headache. I have dealt with several rate and fee shoppers this week and I sense their pain. They talk to a lender and get a quote, talk to a few others, and then by the time they make their decision rates have changed again. Therefore the subject of this quick post is meant to help shoppers compare lenders costs. Every lender has different fees and they all seem to disclose them a bit differently. When providing a Good Faith Estimate a loan officer should itemize ALL fees associated with the transaction. What I have found is that some of our competitors only list their fees. I suppose their thought process is that escrows, prepaids, title, etc. will be the same no matter who the lender is so why list them and confuse the borrower? The reason they should be itemized is because they WILL be there and the borrower needs to be aware now and not surprised at closing! So when you are out shopping around make sure all these fees are itemized and find out which ones go to the lender and which ones are 3rd party fees. This will make the comparisons much easier. When it comes to rate just be patient and ask questions. Find out if there are points associated with your rate quote. Find out if the rate could be locked that day? If you have a property address and they can't lock that day then you know they are sugar coating the rate. Some loan officers do this so that their rate sounds good and then they rely on the market to improve to lock you in at the quote. A very risky game to play! If someone start dancing around your questions then they either are hiding something or simply are not experienced enough. If you shop this way you will be able to tell who the experienced and professional loan officers are.

Happy Shopping!

Brought to you by:
Flat Branch Home Loans Inc.

Home Inspections

Buying a new home is an exciting time. I love seeing the joy on clients faces when that new home or dream home is finally theirs! However, I wanted to take this time to talk briefly about one aspect of the home buying process. This is the Home Inspection. This is one area that we as a lender do not handle. As a buyer it is your choice if you want one or not and once you enter into a contract it is the next step. Just don't get so excited to get to the closing table that you skip this step or get scared away by the cost. This is a very important aspect in the process. Nobody wants to close on the home and then find out all new plumbing is necessary or foundation problems arise. These are just a couple things that can be uncovered in a home inspection. I am sometimes surprised how a couple can get so emotionally attached to a home that they are willing to overlook certain issues. If you have ever owned a home you realize that unexpected things will come up from time to time and having the money to address them is key. (This is where that $8000 Tax Credit can really come in handy) Wouldn't you like to do your due diligence ahead of time to fight off as many future problems as necessary? So get with your realtor and have an inspection done. They will know of some good inspectors and we as a lender do as well. Just ask. The small cost of the inspection is nothing compared to the money it could save you if you catch a problem now instead of after its too late! Almost everyone asks for seller paid closing costs anyway so this is just another item that that money can be used for. It is a great time to buy a home, just don't rush it and things will work out just fine!

Brought to you by:
Flat Branch Mortgage Inc.

Wacky Week

If you receive our weekly newsletter you already get feedback on the MBS market and what rates are doing from week to week. However, the process of monitoring rates on our end is a day by day and sometimes minute by minute process. We have to be on our toes at all times in order to properly serve our borrowers. When borrowers are quoted a rate, they expect us to deliver. We do this by watching the market like a hawk. By doing this we don't put ourselves in the position of quoting a rate off the cuff and not knowing what really is going on. This week was truly wacky. It was a short week due to the holiday and then Wednesday and Thursday were absolutely atrocious for mortgage rates. We have experienced a nice rebound so far today. We of course hope this continues on into next week so we can gain everything we lost. Currently all programs sit about .50% higher than they were to start the week. Not a good sign if you were floating your rate. I for one got all of my people locked prior to, but I am sure not every borrower out there with our company or others were as lucky. The good news is that rates should rebound again and everything will work out, but this is not always the case. Therefore the borrower and the loan officer must be smart when evaluating what is right for the client. Most of the time it is not worth it to risk floating if any nervousness is present.

When I say we monitor rates like a hawk, here is a small snippet of what I am talking about.
Shawn Von Talge does our company analysis of the MBS market and we are notified numerous times a day what is going on. The snippet below is an example:

You will notice my posts coming out a little later from this point forward. Why? Because with spreads this wide volatility as REALLY picked up so I want to get a sense of the DOW and other factors before sending out information. Yesterday marked a VERY up and down day and today (cross our fingers) has really been one directional since open (7am)…………..up! We currently just busted the 100-07 (STAGE 1) and are on our way to 100-10. This is 18 ticks higher from going out levels seen yesterday or (50% additional in yield). Again some other "great" signs to note are the fact that the 4.5%, 4.0%, and 3.5% coupons are all the vintages of choice with the 4% up 23 ticks and the 3.5% up 25 ticks. Again the plan remains the same………stay patient and look for the us to reach and surpass each stage little by little. Again just so you know what stages I am referring to I have outlined them below.

STAGE 1: 100-00
STAGE 2: 101-00
STAGE 3: 101-14
STAGE 4: 101-20
STAGE 5: 101-25
STAGE 6: 102-00

Could we have retracement………..yes we could and probably will but remember what I stated on my previous posts. When we hit levels like this before 11 out of the next 13 days saw higher prices and hence lower rates. So trust in the technicals, be patient and don't panic and these should work out. I personally want to see us gain back a little at a time. Why? Because lenders are more likely to transfer spreads and yields to us if we gain little by little rather than having just a monster day and gain it all back. If that happens they will most certainly hold significant yields back to gauge retracement risks and help with capacity issues. All of today's gains is coming in the wake of a DOW rally……………….a REALLY good sign.

So as you can see this stuff can get pretty technical and most of this means nothing to you, but if you deal with it everyday it makes sense. I wanted to illustrate this to you so you realize what goes into evaluating the market and what steps we take to protect our clients. It can never be 100% right, but it becomes absolutely critical information to a mortgage originator in today's market!

Brought to you by:
Flat Branch Mortgage, Inc.

Don't Get Too Excited About Tax Credit Bridge Loan.

Surely by now we have all heard about the $8000 Tax Credit being offered to first time home buyers. If you haven't just look back in our Blog archives and you will find some good educational content regarding this exciting credit. Shortly after the credit became available MHDC started offering a "bridge loan" that allowed people to tap into the credit early. They would advance the borrower the majority of the $8000 so it could be used for a down payment etc. Then when the borrower receives the actual credit, the bridge loan would be paid off. Now the government is stepping in and getting the word out on some FHA changes that will allow lenders to do the same thing. This news has generated more buzz as the word spreads. Just don't get too excited about this, because the details are sketchy at this point and lenders are doing their due diligence to see if it is something feasible to offer. The way I see it, this is a very risky thing for a lender to take on. The lender is fronting the money and hoping it gets paid back. I don't see too many lenders jumping on board. I know we cannot offer this at the present time. That isn't to say we won't evaluate this again in the near future as more details come out. The MHDC program comes with a higher rate than FHA so most people are not even bothering with it. FHA only wants 3.5% down so most borrowers have that anyway and they just sit back and wait for the $8000 perk later. Another way to look at it is this. With everything going on in today's economy, I would recommend stashing that money away in liquid savings or investing it rather than plopping it down on your home. That amount of money will not make a huge difference in your payment or avoid monthly mortgage insurance. Most first time home buyers don't think about the expenses that can come up in owning vs. renting. When that furnace goes out, it is on you. Do you have reserves to cover such an issue? When that money is not in your savings and is in your home equity, tapping into you equity is next to impossible in today's lending environment. Just some food for thought. We will definitely keep you posted as more details come available!



Brought to you by:

Flat Branch Home Loans, Inc.

Flat Branch County Fair!

Thursday May 14th from 3pm-11pm Flat Branch Mortgage is hosting the "Flat Branch County Fair"! Most of you have probably heard something about this already, but please join us for a night full of fun. This party is being held for several reasons. To kick off the buying season, say thank you to our referral partners and cusomers, and to celebrate our rapid growth. Even during the down economy Flat Branch Mortgage has been able to expand. This has included bringing on board the former Professional Mortgage Group team and their website, as well as Dorothy Sapp from Countrywide. We are now a banker that underwrites and funds our own loans in house and to signify this change we are changing our name to Flat Branch Home Loans.

Last week we posted the link to a recent story on us in the Columbia Business Times. This past Saturday the Columbia Tribune reported on our name change in Street Talk. Check out this story here.

Thanks again to everyone. It couldn't have been done without you!

Hope to see you at the "Fair"!

Flat Branch Home Loans, Inc. / Flat Branch Mortgage, Inc.

Flat Branch Mortgage In The News

Flat Branch Mortgage was recently featured in 2 different news stories.

First, The Columbia Business Times featured us in a piece that reports on our rapid growth this year. In an industry that is reeling, we are moving straight ahead. Click here to read the full story.

Second, is the Scotsman Guide. This is a national mortgage publication and one of our loan officers was the featured author! Shawn Von Talge sits on the board of MAMB and is extremely active in the mortgage indusry. Shawn speaks on how we as mortgage professionals can fight for our rights. Click here to read more.

We are extremely thankful to be featured and even more excited about what the remainder of 2009 will bring! It should be a great year and it couldn't be done without the help of our loyal referral partners and customers.

Thanks again!
Flat Branch Mortgage, Inc.

It's Application Time....Be Prepared!

What should you be doing in order to prepare yourself for what lies ahead when applying for a mortgage loan? The following points will hopefully make the process easier to understand and help you index the items that you will need to consider.

1) Know your credit score and what's on your credit: This should be the first item you look into when considering to apply for a mortgage loan. For the most part I am sure the majority of you are on top of your credit and you know exactly where you stand. If you are nervous to find out what your credit is like, you probably have a reason. Plan ahead and make sure you are aware of your situation so you can tackle these issues prior to getting too involved in the home loan/purchase process.Are there any reporting errors or collection accounts that need to be resolved? Is there any derogatory information negatively impacting your score? You would be amazed how many reports have medical collections that individuals didn't even know were there! We can help advise you on minor issues or basic items. If your issues are more complex there are also reputable credit repair companies that for a fee will help you address and tackle the issue of repairing or erasing derogatory and/or erroneous information on your credit report. If you do have some items that need to be addressed these things can take time so you want to be on top of it.

2) Locate and organize your financial documents: You will need to have the following documentation readily available: Social Security Card, two year's W2's, 30 days of pay stubs, 2 months bank statements, and a quarterly statement for any investment/retirement accounts. You may be asked to provide a divorce decree, bankruptcy documents, Social Security Award Letters and Pension Statements as well. The bottom line here is stay organized and have this information where you can readily find it without difficulty. Should you be missing anything I would suggest you contact the necessary party (i.e. Accountant, Bank, Social Security Office, Employer, etc.) to get a copy of what you are missing.

3) Disclose Everything: I can't stress how important this one is. The loan process is very thorough and there are countless checks and balances. Always relate all pertinent information to your loan officer. You may think "Oh good he didn't ask me aboutmy large deposit in my checking account etc!" This doesn't mean it won't come up later. Very little ever slips by. Just be up front. Let your loan officer mention what may or may not be a problem. If you stay quiet it very easily could cause a bigger problem later and then you will be that much farther into the loan process. You could even find out the deal is dead and that is definitely something you would have wanted to know at the beginning. Most of the time what you may think is a problem, isn't. There are many loan programs and we usually have options for you. I just recently had a deal where a client came to me after working with another lender. A purchase contract was already in place, but I had to work with them on fixing a few credit glitches before we could get started. They failed to tell me they already had an inspection done on the property. Several weeks went by while we were working on their credit items before the inspection was mentioned. I took a look and knew right away that FHA would not accept the property. These buyers could have been looking for another home instead of just assuming everything was fine. Better communication and disclosure can save time and unnecessary headaches!

4) Get a Good Faith Estimate and work with a reputable lender: The most important thing to remember here is knowing what's involved in the mortgage process. Who are you dealing with and what are they charging you? This sounds simple, but it is very important. Be sure to look at the entire package your lender has to offer.(i.e. interest rate, APR, fees, ethical background, testimonials, and knowledge of the market). If you are only focused on interest rate you could miss something! The lowest rate lender in town may not always be the best option for you. Especially if they don't know what they are doing! Some choose to sugarcoat things or lowball their quotes to get prospective customers in the door. Just be on your toes and ask the right questions and make sure you are comfortable. Remember no question is a stupid question!These are four important items when it comes to applying for home financing. The process will be much easier and more pleasant if you are prepared.

Brought to you by:
Flat Branch Mortgage, Inc.

New USDA Income Limits!

One of the best loan programs available just got a little better! USDA loans have become so popular because of the extremely competitive rate (Today 5.25% is the max rate), there is no down payment required, repairs can be financed in, and there is NO monthly Mortgage Insurance! USDA loans are available to all that qualify. You must have a 620 credit score, the property must be USDA eligible, and your family must be able to income qualify. While nothing has changed in the property eligibility areas, the income limits are being relaxed. As of April 20th the following changes will go into effect.

USDA currently allows the following incomes per household:
1 Person = $49,550
2 Person = $56,600
3 Person = $63,700
4 Person = $70,750
5 Person = $79,400
6 Person = $82,050
7 Person = $87,750
8 Person = $93,400

The new limits will be as follows (effective April 20th, 2009):
1-4 Person = $73,600
5-8 Person = $97,150

So from this you can see much more will fit in than before. Also keep in mind that it isn't as simple as taking your income now. Every loan scenario is different, but there are circumstances where 2 or 3 year averages of your income will be used. Daycare and non-reimbursed business expenses are also factored in and these items offset some of the income you make. Bottom line it is worth applying for to see if you qualify. Many people qualified in the past that didn't realize they would and these new income limits will only help.

Happy House Hunting!

Brought to you by:
Flat Branch Mortgage, Inc.

Homeowners Insurance Part II. Lower your premium!

In a post last week we discussed Homeowners Insurance. We focused on the parts of the home insurance policy and how it works. Today's post is part 2 of this segment. As we mentioned last time, you get what you pay for so don't focus solely on price. While this is true, there are ways to keep your premiums as low as possible. Everybody wants to keep their house payment low and if you escrow, your insurance premium plays a part in this. Some people bounce around from company to company searching for the lowest price at their renewal date. I am not a big fan of this. You don't develop any loyalty here and this could come back to haunt you if you have a large claim. Many times there is a reason why 1 company is drastically cheaper than all the others. State Farm, Allstate, etc. have been pricing their business for a very long time and have it figured out. You'll find a company come out with a super low price one year and then they run into financial trouble. You want your insurance company to be financially sound. After all, you are counting on them to be there for you. With this being said it is ok to shop occasionally, especially if you think your price is getting out of hand. This will keep them honest. Now just like last week, let me again mention an important disclaimer. I was an insurance agent for 5 years, but I am no longer licensed. All of this information is solely to help you wrap your mind around this subject and better educate you. Be sure to consult an insurance professional to find out any new details that pertain to their specific company and any industry wide changes that may affect any of the following information. With that being said, here are some tips on keeping your home premiums down:

1. Multi-Policy Discount - Insure your auto, home, and life insurance together. By doing this you will earn a multi-policy discount.

2. Raise your Deductible. - Go with a $1000 deductible. This keeps your premium down. Just make sure you are comfortable with the $1000. Also see what a $500 deductible costs .The larger the home the more difference it makes, therefore a higher deductible may not always make sense. Home claims are fairly rare and usually if something is claimed , it is a high dollar amount. Therefore, the $1000 is small relative to the damage. It also helps fight off your urge to claim something minor that could come back to haunt you down the road.

3. Home security system - By having an alarm you are eligible for a discount. It is best to have a full-reporting alarm to maximize the discount you receive. Keep in mind the cost of the alarm is more than what the discount will save you. If you already want an alarm, just realize this helps justify the price you pay for it.

4. Affinity Marketing Discounts - Ask your insurance company if they offer any Affinity Marketing discounts. Liberty Mutual is the leader in this field as they offer over 8500 different group discounts. In Columbia The University of MO Alumni Association and Missouri Credit Union are big ones. BMW and Onstar are a couple others that used to be in the fold. If your are a member or affiliated with these companies you can get a discount through Liberty Mutual. Met Life is another company that does this and there may be others, just ask. This can save you up to 15% on top of any other discounts you already receive!

5. Loyalty counts - I mentioned loyalty earlier. Some companies offer loyalty discounts or loss forgiveness programs for your years of continued coverage. Ask what programs they have in place. Keep all of these things in mind when looking to improve your premium. These perks can end up saving you more if you ever need to use them.

If you are looking to buy a new home, here are a couple things to be aware of that can potentially cost you money and give you a headache!

1. Location of the nearest fire hydrant and fire station. - If you are in the city limits this won't be an issue. If you are not, then pay attention. If you are over 1000 feet from a hydrant or over 5 miles from a station, you will pay significantly more for home insurance! Some companies won't even insure you!

2.Dogs - If you own a Pit Bull, Doberman, German Shepard, or other dangerous breed you may have some issues obtaining home insurance.

3. Prior claims on the residence - If the home has a history of water problems or claims,you will want to know. In some instances you may need special approval and this can affect your future rates. Insurance companies have different rating policies, so get all the information available to help avoid surprises in this area. Not to mention that if there is past water issues with them home you will want to make sure they are taken care of anyway! Nobody wants these items coming back! Your insurance companies claim search is another way to make sure the seller isn't hiding something.

Hope all of this information helps!

Brought to you by:
Flat Branch Mortgage, Inc.
Posted by: Eric Hemmer

Homeowner's Insurance. What Coverage's are Worth Buying?

I'm sure we all can remember the process we went through to buy our first home. It was an exciting time for me, but I bet we can all agree that securing an insurance policy on our new home was not a memorable occasion! Actually, nothing about insurance is exciting. In a perfect world you buy a good policy, pay over time, and never have to use it. To most people this is a big waste of money! Deep down we really know this isn't the case. Insurance is very critical to your family's financial well-being. We all take for granted that if we lost everything, "the insurance company will pay for it". Just imagine the family that doesn't have this luxury. They just lost a $150,000 home and all of their belongings! What a nightmare! All because they let their policy lapse! The reason that I feel strongly about this is because I was an insurance agent for 5 years. I saw how having or not having insurance affected many people. Please keep in mind that I am no longer a licensed insurance professional. I simply bring up the following items to help anyone looking for information on coverages. I hear from numerous clients that are clueless about their policy. All they know is the price and not what they are paying for! Please consult with your agent to confirm any questions that pertain to their specific policy. All companies offer relatively the same thing, but they do differ slightly.
I have compiled a few tips and coverage explanations to look for when looking for your home insurance policy.

Dwelling with Expanded Replacement Cost-

If every insurance agent and computer property evaluator was perfect, we wouldn't need this endorsement. However, we know this isn't the case. When writing an insurance policy some agents do better than others in estimating how much to insure your home. You do not want to be held to the amount they come up with. Many times people only look at price and not what their home is actually being covered for. Poor agents will also cut coverage in order to make the premium to look good and land a sale. This can really put a customer in a world of hurt. Just look at the fires in California that occur from time to time. $700,000 homes were burnt to the ground and they were only insured for $500,000. That is a $200,000 burden left up to the customer. With expanded replacement cost, the policy will pay up to 120-125% of your homes value. This gives you an extra cushion in the event your home was under insured! (Keep in mind it only pays out if you need it).

Inflation Protection -

Most good policies have this. This adjusts your policy each year for inflation. I am sure you have seen your $150,000 insurance policy jump to $154,500 in its second year. This increase is due to inflation protection. This is needed because it will cost more to re-build your home in the years to come than it will today.

Other Structures -

This is coverage for any detached structures. If you don't have any, it will stay at 10% of your dwelling amount. If you have more detached structures to cover than the 10% allowed, you will want to make sure it is increased.

Personal Property Replacement Cost -

We all know what this is, but believe it or not there are still policies out there that have limited replacement cost or actual cash value! Stay away from these. Full replacement cost is the only way to go! Also look at the amount you are covered for. Some companies cover 75% of your dwelling amount. Others offer less. Just get the most bang for your buck!

Loss of use -

If you are unable to live in your home due to a loss, your policy will pay for the expenses you incur while living elsewhere until your home is repaired. Some policies cap the amount here. Make sure you feel the limit is sufficient. Good policies will state "Actual Loss"

Liability -

The minimum amount is $100,000. This is too low. $300,000 is the minimum you should have in my opinion. You can of course have more. If you have an umbrella policy you can keep your liability at $100,000, but if not make sure it is increased. There are too many sue happy people out there and you want to be protected!

Medical Payments -

This is not like your car insurance med-pay. This is only for others on your property. Not many people go with more than $1000. Just make sure your liability is high and you should be fine. Make people file suit if they are on YOUR property and try to collect money off of your policy! Either way this isn't an expensive part of the policy so if you have more it isn't the end of the world. I just wanted to point out some people's logic on why they don't carry much.

Deductible -

Your deductible is up to you. Go with an amount that makes you feel comfortable. $1000 is most popular today and makes the most sense. This reduces your premium and will also help ward off small piddly claims that will raise your rates. What good is a $500 deductible if you claim something that is $700? You save $200 and your rate goes up $20 a month. Then if you would happen to have a 2nd loss, you would have 2 claims and are in danger of non-renewal or a huge rate hike!

Earthquake Endorsement -

Some people have this and others don't. Make your own decision, but realize that if your home is damaged due to an earthquake or earth movement, you are out of luck! This isn't too expensive so weigh the pros and cons. Earthquake deductibles are typically 10% or so. This equates to $15,000 on a $150,000 home. This may also factor into your decision.

Water or Sewer Backup Endorsement -

This is something many people think is included in a policy and it is not! Water damage is covered, but not sewer! Your can purchase specified amounts of protection. Be sure to look into this and ask your agent.

Identity Theft Endorsement -

This is a newer item, but is gaining in popularity. If someone steals your identity and causes you harm, it can cost some time and money to clean things up. This will pay for it and provide a representative to help facilitate the process!

Scheduling Items -

The most common item to schedule is jewelry. Your policy has low limits for specific items. You will want to schedule valuable or priceless items. This is a quick summary of the parts of a home insurance policy.

Keep all of these points in mind when deciding who you are using and what coverages to include. Just remember you are buying piece of mind and financial security when you pick your coverages. Don't focus solely on price and find an agent that will work hard for you. I hope this helps. Here are a few links to some of the larger insurance companies.

State Farm Insurance - http://www.statefarm.com/
Liberty Mutual Insurance - http://www.libertymutual.com/
Allstate - http://www.allstate.com/
Shelter Insurance - http://www.shelterinsurance.com/
American Family Insurance- http://www.amfam.com/

Brought to you by:
Flat Branch Mortgage Inc.
Posted by: Eric Hemmer

Government Loans!

As many of you already know the mortgage world has shifted greatly toward Government programs. Quite awhile ago Flat Branch Mortgage made a concerted effort to specialize in these very programs. These great products are FHA, VA, and USDA. All are top notch and carry great rates. I will briefly highlight a few items on each program.

FHA

• Low Rates - This program does not carry with it the hefty rate hits that conventional programs do. (5.5% as of today)
• 3.5% Down payment (Gifts allowed)
• Non-Occupant Co-Borrowers Allowed
• Upfront MIP fee is financed into the loan and a reduced monthly MI fee is charged.
• No Pre-Payment Penalty
• Fixed Rate

USDA

• Property Must be USDA Eligible (Click Here to Run an Address)
• Household Income Must be Eligible (Click Here to Run Income)
• NO Down Payment (102% Program)
• Cosmetic Repairs Can Be Built Into The Sales Price (As Long as Home Appraises)
• Low Rates - This program does not carry with it the hefty rate hits that conventional programs do. (5.25% as of today)
• 2% Upfront USDA Funding Fee Is Rolled Into the Loan, but NO monthly MI is charged!
• No Pre-Payment Penalty
• Fixed Rate

VA

• You Must Be An Eligible Veteran
• Low Rates - This program does not carry with it the hefty rate hits that conventional programs do. (5.50% as of today).
• Upfront MIP Fee is charged, but NO monthly MI is charged.
• No Pre-Payment Penalty
• Mortgage can be taken over (or “assumed”) by the buyer when a home is sold.
• Counseling and assistance available to veteran borrowers having financial difficulty or facing default on their loan.

Learn More About VA Loans Here: http://www.yourvahomeloan.com/Home

Flat Branch Mortgage can lend using these products as well as all standard conventional programs. Our Main office is located in Columbia, MO, but we have 2 VA Branches as well as a Branch in Moberly, MO.

Please visit www.flatbranchmortgage.com for more information or to Apply for a loan. You many also call our office (573-442-3850) to speak to one of our Mortgage Professionals!

Brought to you by:

Flat Branch Mortgage, Inc.

Rate Locking and Floating Basics

In today’s interest rate environment the decision of when to lock and when to float is very important. It is also very difficult to monitor the market and make predictions on what will happen. The market is so volatile these days and playing the interest rate game is very risky! I wanted to talk briefly about interest rate locks and some of the different approaches one can take.

First the whole point of a lock is to secure a particular interest rate for a set time period. These range from 7 days and go up from there. The most common lock period is 30 or 45 days. You will receive a pricing hit that increases with the term of the lock. This is why you see some people continue to float to try and incur the smallest hit.

Floating is choosing not to lock in order to try and catch the market on a good day to lock. Most customers like this idea because it is music to their ears that they could possibly get a lower rate. What they don’t like is the possibility that they could get a higher rate if the market goes the other way!

Consumers want the best of both worlds. They want to take advantage of a drop in rates, but they want the security of a lock. This simply cannot be done.

As you begin your loan process there are two approaches you can take.
The first is to shop around and find a lender that you can trust that offers you a fair price. If you are happy with the rate and do not want to mess with it any further, just lock!

Second, after discussing your rate and the current rate environment you can decide to float. If you choose this option you better feel comfortable with who you are dealing with and make sure they know their stuff. Very few lenders have the knowledge or spend the time and money necessary to monitor the market in order to form their own market analysis. .Floating is never perfect and the market can change in the blink of an eye. Your loan officer can have the best intentions and still not get you locked. This is because unforeseen variables can be thrown at us from time to time. Case in point was Mid-December 2008. Rates hit all time lows on December 17th and all of the lenders websites began to crash while everyone tried to lock. The end result was that by the time the sites came back up, rates had already shot back up! Many people missed out! So you can see how difficult this is. Keep this in mind. Give your loan officer your target rate and they can tell you if it is realistic. It is also best to give them the green light to lock at a given rate you would be happy with if rates begin to shoot up. They may not have time to reach you via phone to discuss the situation. Remember the only sure thing is to lock, but this information should help you if you choose to float. A couple other important things to note are as follows.
If you lock with Investor A and rates drop considerably you are not out of options. Worst case scenario we can switch investors, but we are penalized for this. So the investors have put in a few policies to help. Each investor has their own renegotiation process. If the market has moved enough we can possibly renegotiate to that days going rate or close to it. Some lenders are offering more lenient rate extensions as well. Every situation is different, so be sure to ask. The whole point it to get you what you want as long as the current rate environment allows it. We are working for you. Just realize that there is no perfect science and if anyone tells you they are smarter than the market, they are wrong. There is always risk and you must be aware. Most people do not have a large enough loan balance that makes holding out for an extra .125% worth it. The monthly savings difference really isn't that much is most scenarios. However, rates shoot up much faster than they go down so the extra .50% you might end up paying if the market goes the wrong way fast will surely be noticed! Floating isn't always bad, just be aware of how the process works and the pros and cons so you can make your own decision.

Brought to you by:
Flat Branch Mortgage

Credit Repair and its Importance.

Credit Repair has always been out there. During the Mortgage Boom its importance was decreased because there were so many programs that allowed people with past credit problems to get into homes. Since all of these programs went bye bye, it is starting to creep back into the picture. On top of this the programs that remain are continuing to evolve. Recently a new wave of changes came down the pipe and 620 is the new standard minimum score. With this we are now taking apps every single day the fall just below this threshold. Just last month they could qualify, but no longer. With this being the case, all loan officers have to step up their game and their services. Let me state this first, we are NOT credit repair specialists. We just simply deal with credit on a daily basis to know how to help in certain instances. For those of you that fall just below the 620 minimum, there is hope. We can run a credit program that will evaluate your score and detail a plan to raise your score. We only do this if we feel there is a realistic chance of helping you get above the 620 mark. Many times we find there is nothing that can be done. However, there has been numerous times where it does work. We can sometimes find that a borrower needs to address a couple accounts, provide us proof of the action, and then we can submit this documentation to re-score your credit report. This process is fast and it works. This is just one more way we are here to help. For those situations that are more severe and messy I recommend you check around and find a good credit repair company to do the work for you. This can be expensive, but it is worth it since it is so tough to clean up messy credit reports. We do not have the time or resources to tackle such projects, but we can help on more minor issues and put you in a better position to purchase a home!

If you are one of the many people that need to rebuild your credit let me just mention a couple quick tips you can try. When your score is low it is very tough to walk into a bank and ask for a loan to help rebuild your credit. During these tough times they may just laugh at you. Don’t get discouraged. Take a proactive approach and propose something to them.

Tip #1:
Ask the bank if they will allow you to take $500 and purchase a CD at the bank and then take out a $500 loan against that CD using it as collateral. Set it up for 1 year at $50 a month or so. Take the $500 loan proceeds and put it in the bank and use this money to make the monthly payment. What this does is give you an active account on your credit and as you pay it establishes positive pay history for you Once you pay it off, do it again.

Tip #2:
Contact a credit card company and do something similar to #1. Ask them if you can open a secured credit card. Send them $500 and they will put it into a savings account and issue you a credit card with a $500 limit. If you default, they just keep the money like they would on the CD. Take this card and make a few minor purchases on it. Say $100 or so (i.e. gas or meals). When you get your first bill pay a portion of the balance and continue this method. Never borrow more than 50% of the credit limit and of course always pay on time. You can’t use it and pay it off in full each time you get the bill or it will not work. Remember you are looking to establish payment history and you have to carry a balance month to month to do this.

I know you probably have a negative view of credit cards or debt for that matter, but you have to do something to re-establish your score. If you have zero debt, it is great in real life but your credit score will just sit where it is until some sort of activity is on your report. If you have any further questions, please do not hesitate to contact us.

Brought to you by:
Flat Branch Mortgage

My Trip To Washington D.C.

Washington D.C., what else can be said about what takes place on Capital Hill these days? Well, from the 21st through the 24th of February I got to experience first hand what our Congressmen and women do on Capital Hill. The experience was priceless. The people I met, spoke with, and bounced ideas off of was unbelievable. Through my four days there a couple of things were made clear to me. First, the economic crisis that we all are experiencing is real and it's far worse than many people anticipated. Second, our state representatives are extremely aware of the issues at hand and are diligently trying to come up with ways to fix the problem(s). Third, even though in order to tackle this mess a bi-partisan approach must be met the feelings are not mutual behind closed doors. Fourth, it was clear to me that our Representatives and Senators are really feeling the heat from their constituents that something must be done and fast! To that affect they passed a huge stimulus bill (almost $900 billion) to try and ease the current economic woes. My consensus was no one thought the package would truly "fix" the economy. By the time the affects of this plan will be felt, the money would already be spent. What if we find it didn't work? Guess what, too late the money is gone!

I received a "crash course" on lobbying and one thing must be said……it's hard work! Our state representatives have their own areas of expertise so when one individuals expertise is defense, another's could be finance. So when an area is discussed that is outside their area of comfortability or expertise they rely heavily on their counterparts for input on the matter. No one individual can be or is an expert in all the areas that are affecting the economy. The biggest problem with this approach is that we have constituents who may or may not like the view point or opinions felt on that particular matter. I did gain new found respect on just how hard our congressmen and women work. It's not all dining and mingling up there! They (Representatives and Senators) are constantly meeting with groups and individuals about their concerns or initiatives. They are constantly in conferences and committee meetings. They are constantly fielding phone calls and moving from place to place. All in all their daily schedule can be pretty taxing. Time will tell whether or not things will change and the moves being made will actually be felt in the "private sector".

Brought to you by: Flat Branch Mortgage
Posted by: Shawn Von Talge

MI Companies Putting The Clamps Down!

Everyone in the mortgage world is feeling the pinch these days. During the past several years 100% programs and other risky products were abundant and we are all feeling the affects. Mortgage Insurance Companies (MI) were right in the middle of this. They are the ones who insured loans over 80% loan to value.! Safe to say business was very good for them. Well not so much anymore and they have of course scaled back. This is what is necessary, but the changes keep coming. Recently a disturbing trend is taking shape. Two major MI companies (PMI and AG) have decided to not insure loans made by mortgage brokers! This is a huge move that will have the broker industry reeling. I know first hand small broker's that are scrambling and re-evaluating their business plans. If all of the MI companies follow suit, many will be forced to shut down. We at Flat Branch Mortgage are lucky that we recently switched over to be mortgage bankers as opposed to brokers. This way the changes will not affect us in the same way. However, if we hadn't made this move we would be in the same boat as all of the other brokers. Not a very fun seat to be in that is for sure! It remains to be seen "if" the others will follow suit and if this is a temporary decision or a permanent one. It seems to me that this is a drastic move and a bit of an over reaction. I feel sorry for the small businesses that do business the right way that are being caught up in this mess. It seems there would be a way to rate the quality of business each broker does. If the quality is poor, then cut them off! A blanket policy is harsh. While it may be good in the short term for us (reduced competition), I feel it is bad for he consumer. We have already seen how well the "BIG BANKS" run their businesses. If all the small brokers are cut off who will be their competition. Who will keep them honest and competitive in the marketplace? This is very important in my eyes. If they are competing against themselves they can continue to take the bailout money, hoard the cash, and set the market themselves. Doesn't seem like a recipe for success to me. This is just one of the many industry changes taking place behind the scenes. Be sure to check back for updates as it will be interesting to see how this plays out.

Brought to you by:
Flat Branch Mortgage

Tips For First-Time Homebuyers. (Guest Post)

By Jody Calvin
Prudential Vision Properties
www.PrudentialVision.com

Home-price adjustments in markets around the country have opened doors of opportunity for many renters. If you are transitioning from renter to homeowner, the prospect of making such a large investment may be exciting, while at the same time overwhelming. But it doesn’t have to be.



Here are six common mistakes to avoid.


1. Not understanding the homebuying process. Educate yourself. Find a homebuyer seminar that you can attend or research online. The U.S. Department of Housing and Urban Development Web site (http://www.hud.gov/) has an entire section devoted to homebuyers with common questions of first-time homebuyers, mortgage and home-buying programs information, downloadable tools such as a wish list and home-shopping checklist, tips on selecting a real estate professional, etc. Likewise, Prudential Real Estate’s popular Web site, prudential.com/realestate, offers consumers brand-new tools for the homebuying process, such as free home environmental reports, Value Range Estimates and Property Profiles, among other resources.


2. Not asking questions. There are many facets and intricacies to the homebuying process, so although you may gain a basic knowledge, you will still have questions. Don’t hesitate to let your real estate professional know that you are new to the process. Make sure you choose a sales professional who is willing to spend time with you and walk you through the entire process. He or she will expect you to have questions at each step—from house hunting, to making an offer to the closing. Remember, this is one of the largest financial transactions of your life, so you want to have a clear understanding of what’s going on.


3. Buying on impulse. Don't feel pressured into making an offer on the first home you see. Buyers, especially first-timers, may be impressed by the first two or three homes they view. Look at a good selection. List the positives and negatives about each home. Narrow the prospects to three or four and then return for a closer look. When you decide to make a bid on a property, work with your real estate professional to get all of your questions answered before making an offer. But don't wait too long to make an offer. The longer you wait, the greater the chance other prospective buyers may place offers, making it harder for you to negotiate a good deal.


4. Looking outside your price range. Before beginning your home search, consider getting pre-qualified to so get an idea of how much you may be able to borrow. Use this information as a starting point in determining your price range. Then take into consideration other factors that will affect your monthly budget once you are a homeowner, such as property taxes, homeowners insurance, utilities, private mortgage insurance (PMI) and maintenance.


5. Not planning ahead. Think about personal changes you are planning in the next five to seven years. For instance, are you starting a family, and if so, is the home large enough and will it continue to be? If this will be a starter home or if you think you’ll be relocating in a few year, you’ll probably want to pay closer attention to appreciation and resale value. If a double-income is necessary to qualify for financing and to make your payments, do your plans foresee an income sufficient to continue making payments?


6. Failure to focus on location. Don’t just focus on the house. Examine the community. Does it suit your lifestyle? Is the area safe, well-maintained, close to work, stores and schools? Find out about zoning and what new construction is planned on vacant land in the immediate area. Also consider the property marketability when it’s time to sell.
Above all, remember knowledge is key. No question is a silly question. Your real estate professional can be an invaluable asset throughout the process. Making smart home buying decisions will make the home-buying process less scary and your first home purchase a rewarding experience.

Jody Calvin can be reached at 573-881-8771. Prudential Vision Properties is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

Mortgage Relief Plan

Today President Obama unveiled his Mortgage Relief Package. This is geared to fight off foreclosures and attempt to stop the mortgage crisis from deepening. This is long overdue for many Americans. Unfortunately it is too late for far too many who already succumbed to foreclosure. It will be interesting to see how the incentives actually will affect the servicers and investors who have been stubborn in the modification process. All of us here in Missouri are well aware of what is taking place across the Country, but we are pretty insulated from the horror stories going on in California and other parts of the Country. Imagine more than half of entire neighborhoods being vacant as a result of this mess. It is a reality for many and we can only hope this initiative will help.

The plan includes:

• Helping borrowers who owe more than 80% of their home's value to refinance and reduce their monthly payments.

• Creating a $75 billion homeowner stability initiative to reduce monthly payments for at-risk borrowers by subsidizing interest rates. The goal would be to bring payments to no more than 31% of a borrower's income.

• Providing multiple incentives to servicers to modify loans and to proactively help at-risk borrowers while they are still current in their payments.

• Creating a $10 billion fund to protect investors and servicers against further home price declines.

• Requiring all financial institutions receiving government funds to participate in a standardized loan modification program, while seeking to have all federal agencies that own or guarantee loans also apply the guidelines.

• Allowing judges to modify mortgages during bankruptcy, a measure the financial industry has strongly opposed.

• Providing more Treasury Department backing of Fannie Mae and Freddie Mac and expanding the number of mortgages the agencies back.

More details of this plan will be available as the day and week goes by, but you can view the whole story here or visit CNN Money.com.

Brought to you by:

Flat Branch Mortgage, Inc.

Flat Branch Mortgage In The News!

President Obama is set to sign the new stimulus package today. Part of this package is the often discussed New Home Buyer Tax Credit. Last week KOMU-TV aired a story that featured Flat Branch Mortgage President Jim Yankee and RE/MAX Boone Realty's Dale Davis (The Jacobs Group). Dale just so happens to be this months Featured Realtor on www.flatbranchmortgage.com. Click Here to view the featured story that aired on KOMU-TV.

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Flat Branch Mortgage, Inc.

What Is The Scoop On This Tax Credit????

WOW, have the questions pertaining to the Tax Credit been fast and furious. First let me say that Flat Branch Mortgage and any of our employees are not qualified to give tax advice. Please consult your accountant to find out how the credit can help you! However, I have had several discussions with accountants about how our client's can benefit! The Senate is holding the final vote this evening on the Stimulus package. In it is a revised version of the Tax Credit. Alot of numbers and rumors are flying around as different proposals were being leaked. The latest update is that this is now $8000 and it is for First Time Home Buyers. This is defined as not owning a home the last 3 years. This will not have to be paid back unless you sell the home within 3 years. The credit is also refundable so in basic terms it works like this. Come tax time next year your income and deductions will be calculates as normal. Once your total Tax due is calculated, this amount is reduced by your credits. This is where the Tax Credit comes in. For example, if you end up owing $5000 in tax, this would be reduced to Zero! Then you would get a refund of the remaining credit ($3000) and you would also get back the money you paid in during the year that was withheld from your paycheck! So as you see it is different than getting a check for $8000. You can choose to adjust your withholdings as well, but you get the point. Pretty nice perk. I sure wish I had it when I bought my home! Safe to say it is exciting for First Time Buyers. Contact your accountant to confirm how you can benefit and then contact Flat Branch. We look forward to serving you!
Check back next week. More details will surely be posted.

Brought to you by:
Flat Branch Mortgage, Inc.

5 Tips To Help You Sell Your Home Fast! (Guest Post)

By Jody Calvin
Prudential Vision Properties
www.prudentialvision.com

There is no question that in many parts of the country, houses are currently on the market longer. As a seller, this slow-down means there is more competition for a limited pool of potential buyers. Consider the following five tips to place your home on the fast track to sale:

Price It Right

The first 30 days are the most critical. If your home is priced too high, interested buyers may never even tour your listing. The longer the property is on the market, the fewer the prospects.

Deciding the value of a home isn’t an exact science. Yet, there is data to help you determine a fair asking price that is right on target. You may want to hire a real estate appraiser for an objective, unbiased estimate. Then consult with a real estate professional who can help you determine true market value based on a comparable market analysis, which will include recent home sale transactions as well as homes currently on the market. From your analysis, you may want to price your home conservatively to give it a competitive edge.

Make Your Home Irresistible

Unless they are looking for a fixer-upper, most homesellers are more likely to make a bid on a home that they can enjoy immediately. Therefore, you need to create an environment the buyer can’t resist. In other words, do everything you can to make the home so attractive, charming, cozy, inviting, comfortable and exciting that a buyer will want to buy that lifestyle for himself.

Evaluate the home from a buyer’s point of view. An experienced real estate professional will be able to offer an objective view and will also know what buyers are asking for. Get your home in tip-top shape by making repairs and cosmetic improvements, and removing clutter. This may mean investing in a few upgrades to modernize your home’s look such as installing newer carpet and light fixtures and painting the walls a neutral shade.

Create Traffic

If you want buyers to see your home, you must first find the buyers. Work with your real estate professional to design a marketing plan that is flexible and capitalizes on your property’s most desirable features. Your strategy should include ways to reach buyers online and offline – such as word of mouth, the Internet, yard signs, direct mail, open houses and so on.

Go with a Professional

Selling a home is more than just putting a sign in your yard and having a listing on the Internet. And in a competitive market, you don’t really want to take the chance of making novice mistakes that can slow the selling of your home. By hiring a real estate professional, you get the benefit of an experienced marketer and negotiator who is familiar with real estate issues in your community. A real estate professional can offer worthy advice on pricing and staging your home based on their vast experience.

Plus, there’s the added value of the peer-to-peer networking among real estate professionals, which can bring buyers and sellers together – sometimes even before the property goes on the market.

Offer Incentives

Offering incentives can be just the impetus a potential buyer needs to select your property over others. You may want to consider offering a carpet or paint allowance. Or, pay for a professional home inspection or a home warranty – and, depending on your market and budget, offer to pay some of the closing costs.

Don’t be discouraged if there are competing homes for sale in your neighborhood. With just a few smart moves, you can turn a buyers’ market in your favor.

Jody Calvin can be reached at 573-881-8771. Prudential Vision Properties is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

Go Mizzou!

Today I have decided to take a break from the norm and talk about something fun and positive! By this I mean, the Missouri Tiger Basketball Team. If you are from this area it is hard to not be aware of what took place last night. The first installment of the MU/KU Border War (Basketball Version) was fought out last night at Mizzou Arena. It was a sellout crowd and everyone was treated to a great game! MU capped a furious, hard fought comeback with a late bucket to prevail 62-60! This marks the first time Coach Mike Anderson has beaten KU and shows MU is really headed in the right direction. While the KU game always brings a sellout, it was sure nice to see how we perform with that much energy in the building. I just hope we can continue to support them like that. That means during good and bad times. We will meet up with them again in Lawrence, KS and I am sure it will be another tight one! There are only a few home games left so make sure you get out to show your support! They are really fun to watch and it will sure be nice watching them perform in March!

GO TIGERS!

Brought to you by:
Flat Branch Mortgage, Inc.

$15,000 Tax Credit?

Last night the Senate passed a $15,000 Tax Credit for ANYONE who buys a home. This applies for new or existing homes as long as they are your primary residence. Currently the tax credit is $7,500 and is for First Time Home buyers only. It also must be paid back over 15 yrs (interest free), however legislation is already in the works to remove the payback feature. If this $15,000 version fully passes (part of current stimulus package being voted on), it will be a great boost! It will not be an end all be all or a quick fix, but it will help spark some interest. This is expected to cost $19 Billion. While the cost is steep, it is well worth it. Especially with all the money being thrown at our economies problems that has not worked. Most first time home buyers are not necessarily sitting on the sidelines anyway. They have no ties and if they want a home, they can buy one. Prices are low, rates are low, and tax credits are already available. Now everyone can have a crack at the tax credit! Many still can't take advantage or won't because they have a home to sell or they are locked into a particular situation that keeps them from buying. So the idea that everyone will be out and about buying homes is false. However, if passed this will surely generate some buzz and excitement that was missing from the marketplace. I have had several conversations with Realtors and others about this very subject. Most were wanting this and now it is a possibility. The other major question about this tax credit is how it effects the closing. This is something that will not effect your closing by providing additional funds to put down or help with closing costs. This is a TAX credit that will be factored in when you do your taxes for the year you purchased the home. I spoke with an accountant about this briefly last night and he did bring up one good point. With such a large credit on the table to add to the refund you probably already receive, he offered an idea. Since you know this is on its way you can get with your payroll department and adjust your withholdings. This will allow you to withhold less from your paycheck so you can have more money in your pocket NOW. The whole idea behind withholding is so you don't owe a huge chunk at tax time. The downside is you can't take advantage of your full pay in the meantime. It comes back to you in the form of a tax refund. So by adjusting your withholdings you can access some of your future credit each month by utilizing more of your monthly pay that normally would be taken out. Make sense? I know it isn't as exciting as getting a big fat check, but it is better than nothing and you will still get a hefty tax credit and in turn tax refund come tax time!

Brought to you by:
Flat Branch Mortgage
Posted by: Eric Hemmer

Resolve to Get Your Home Documents Organized (Guest Post)

By Jody Calvin
Prudential Vision Properties
Office: 573-449-6200
Email: info@PrudentialVision.com
Website: http://www.prudentialvision.com/


As a homeowner, you begin to accumulate all sorts of records and papers the moment you made the offer on your home. Loan documents, inspection reports, title insurance policy, home improvement receipts, appliance warranties are just a few of documents that you may at one time or another need. Would you be readily able to locate these items? Are they filed away or in different junk drawers around the house? Knowing where these items are can save you a lot of time and even money in the long run.
Consider investing in a record-keeping system. It doesn’t have to be expensive. You can purchase an accordion file and label each flap with a different category. Then use the following tips as a guide to get started.

Contracts and Legal Papers
Keep all the papers signed and/or given to you at the closing together in one place, preferably in a safe deposit box. These documents include the deed, settlement statement, appraisal, disclosures, mortgage note, inspections and any other reports, and title insurance policy. You will need these records again if you decide to refinance or sell your home.

Insurance Policies
Keep a copy of all insurance policies relating to your property together. This may include homeowners, flood and earthquake policies. With these documents, keep a list of insurance agents or companies and copies of correspondence related to claims.

Purchase and House Data
It’s also a good idea to keep a copy of the original listing of your house, comparable market analysis, floor plans, blueprints, and historical information. If you own a newly built home, keep a list of contractors and material suppliers as well.

Property Taxes
Keep your tax bills and record of payment for as long as you own the home and possibly even longer. You may need these items if your tax returns are ever audited.

Home Maintenance and Improvements
Records in this category include receipts for repairs or replacement expenses, names of contractors, contracts, and a log of maintenance tasks.

Warranties, Manuals and Receipts
These documents provide you with a proof of purchase date and determine service and parts guaranteed. In addition, the manuals usually provide care information so you can help ensure your household appliances are being properly maintained. You should keep your warranties, manuals and receipts for these items for as long as you own the appliances.

Home Inventory
If you were ever to lose any of your possessions due to fire, burglary, or vandalism, having a home inventory can help you avoid a lot of heartache and make it easier when filing an insurance claim.
Start with a sheet a paper for each room in the house. Go around the room and list every item. Don’t forget the attic, basement or other storage places. For each item, write the original cost, purchase date, replacement cost, model number, brand name, where purchased, and a general description. You can also use a computer software system so that you have an electronic copy.
Besides a written inventory, take photos or video of each room for visual documentation. It is also a good idea to arrange valuable collections, silver, jewelry, etc. and take close up photos.
Keep a copy in your home files and the originals in a fireproof safe or safe deposit box. Make sure you update your home inventory photos and list at least once a year.
Organizing your home files may take a considerable amount of time initially, but it will definitely be time well spent in the event you need the documents later on.

Jody Calvin can be reached at 573-881-8771. Prudential Vision Properties is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

The Market Is Heating Up! (Guest Post)

Today is our first "Guest Post". We are very interested in any professional or referral partner of ours who feel they have valuable content to provide our readers. We constantly talk about what is going on in the mortgage world and current events or feature educational content. However, we want to mix it up at times. In the coming months we are going to make some alterations to our website and our blog. One attempt to do just that is bringing in other experts to let theri voice be heard. Their views will not always echo exactly what Flat Branch Mortgage feels, however I think its benefits far outweigh any drawbacks. Just be patient with us as I am sure we will tinker with this idea until we get it right. Ok, enough of that and lets get to today's post!

The Market is Heating up!
By: Kim Stanley SRES, e-pro, SRS(Re/max Boone Realty

Believe it not , January has become extremely busy for real estate professionals, lenders and title companies, Not only have the number of showings increased, but more homes have been put under contract in the past 2 weeks than in many recent months. The selection is still great, interest rates are still at historic lows, and there is a pent-up demand.BUT IT WON'T STAY THIS WAY. Here are some cautionary predictions shared by many financial gurus:"Although home loan rates are very attractive now, the picture could be quite different as some inflationary factors will likely come to light heading into summer. Oil prices may be on the rise as we approach the summer driving season, some of the economic stimulus might begin to take hold, corporate cost-cutting measures could start to bear fruit, and, perhaps most importantly, the Fed will no longer be a buyer of Mortgage Bonds." (excerpt from MMG Weekly Market Update 1/26/09)Many are advising that if home owners or home buyers want to make a move, they need to do it now to get the best mortgage rates. They also suggest not waiting to lock in rates, hoping they'll go down another percentage of a percentage point. By doing so, you run the risk of a higher rate and possible delayed closing.For those who have been on the sidelines waiting for the right moment to jump into the market, now may be the best time for awhile.

To read more from Kim just click HERE and visit her BLOG.

Kim Stanley, SRES, e-PRO, SRS
Broker/Sales
Remax Boone Realty

Are You A Frustrated Rate Shopper?

With the recent drop in rates we have really seen the phone calls pick up. Shopper's are out in full force calling around for the best deal. Lately I have noticed a slight bit of frustration in some of these people. This stems from the fact that 4.5% rates have been plastered all over the Internet and print media. These callers want this rate and they are finding out that it isn't available! That's right, currently this rate is not available. Actually, for the most part it never was. This rate is what the government set as a goal. By pumping the MBS market with money, they hoped the result would be reduced rates. It did work for a short time and rates dropped in the 4's. Many local or regional banks have taken advantage of this in the short term and some customers found some luck going this route. The problem is that there is a very select few that can obtain the super low rates. They then tell their friends and family and the word spreads! When rates hit their low point in mid December, lenders were flooded with applications. I mean absolutely swamped. In some cases it has taken a full month to just get a loan commitment from them. To help fight off this problem lenders have actually raised rates to deter us from sending loans to them! This will allow them to catch up. This only compounds the problem. Rates never got as low for the masses as people thought they did and now lenders aren't even offering out the good rates they do have. Confused? Wasn't the point to keep rates low? Well these are questions these callers and even people in this profession are asking. Rates will turn around at some point. We hope sooner rather than later. Just remain patient. Also, keep a few things in mind. First, don't get greedy. If you have a $100,000 loan and you are holding out for an extra .125% or .25% lower rate, it is probably a bad idea. This will only save a few extra dollars per month, but you run the risk of rates spiking and you lose the rate you had in your grasp! Second, you should start the application process with a lender you trust. If your file is in underwriting we can lock at a moments notice when the market turns. If you haven't started the process you run the risk of us not being able to lock in time. Not to mention you get a head start on the longer underwriting times. Lastly, consider Flat Branch Mortgage. At Flat Branch we do a couple things far better than our competition. We are unique in that we have a live feed of the bond market and are able to make our own float or lock decisions. We don't rely on some Internet service to tell us when to lock or float. We can save you money this way! We also have in house underwriting. Not every single loan can be underwritten in house, but the majority can. What does this mean for you or for your clients? This means we have total control of the file and we don't have to ship it off and be subject to the ridiculously slow turn times at other lenders! This means faster closings and ultimately in some cases better pricing. How is that possible? This is because we don't have to lock so far out to preserve your rate in order to accommodate the turn times brokering requires right now!
Please remember, rate is important but it is not everything. Especially if you are with a lender that locks you in and has to extend it several times before you close. This ultimately causes you stress and costs money.

So if you are a frustrated shopper, we understand. We are frustrated as well. When you call, we truly want to offer you the best. By this I mean the best rate and the best service. We can do this in the service department, hands down! When it comes to rate we are at the mercy of what the market gives us. If it is possible, we will offer it to you! We want your business and we ask that you give us a shot. We realize we will not be the cheapest every single time, but if you present us a competing offer we will do our best to match or beat it!

Brought to you by:
Flat Branch Mortgage, Inc.
Posted By: Eric Hemmer

Let's Find a Bright Spot......Please!

I have truly been searching for something to hang our hat on moving forward but today did not do us any justice....at least from a recovery standpoint. You see with the economy in a recession and companies sales really falling by the way side we get the following; Sprint laying off 8k, Phillips laying off 6k, Caterpillar cutting 20k, McDonald's (this is McDonald's we are talking about here) is down 24% and Home Depot is eliminating 5k in jobs.

Many are predicting more of the same through the spring. The key to an economic recovery is J.O.B.S. and individuals, couples and families making money, saving money and having money to SPEND. The sticking points in a recession is that it's primary purpose imposes just the opposite thus making it very hard to reverse the trend. To top it off there is such a disconnect between primary rates (the rates offered or trading on Wall Street) and secondary rates (the rates at which consumers can get) that the Fed Purchase Program IS NOT WORKING! I promise to find something "pretty" to read about in the coming weeks but I also must do my part in truly talking about what is fact and not what we "wish" it to be.

Brought to you by Flat Branch Mortgage, Inc.
Your Mid-Missouri Mortgage Lender
Posted by: Shawn Von Talge

So Much for Government Intervention

Well, what once was thought to be a good thing is now gone by the way side and actually sputtered some more. What am I talking about? Mortgage interest rates have gone from one extreme to the other. The morning of December 17th saw ALL TIME low mortgage rates for a period of about 60 minutes from that point till today it has been nothing but bad news for mortgage rates and all the time the U.S. government has been doing most of the buying. For instance on 12/17/08 the 4.5% MBS coupon (the bond that affects mortgage rates high price=low rates) was at 103-06 and today we closed (keep in mind this is the same 4.5% MBS coupon) at 101-04!

Simply put the "media frenzie" surrounding mortgage rates is a complete mirage right now. Be advised that we are no longer in a refinance rally and the one that was underway was the shortest I have seen in 11 years! Let's hope we see some rebounding and quickly otherwise there will be a lot of disappointed consumers out there. Although it seems disappointment has been the norm lately.

Brought to you by Flat Branch Mortgage, Inc.
Your Mid-Missouri Mortgage Lender
Posted by: Shawn Von Talge

Our 44th President

Today Barack Obama was sworn in as the 44th President of the United States of America. Whether you are a supporter of his or not, we all know how truly historic today is. Not only is he the youngest president or the first African-American President, he brings hope to millions of Americans at a time it is sorely needed. We are at war and our economy is crumbling around us after a rocky 8 years under President Bush. President Obama inspires many and has some wonderful ideas of how to resurect this nation! Not everything will work and it won't be easy. We also know it isn't going to happen overnight, but I am confident the right guy is in charge. We all have to do our part, but I do think we will get there! It is just going to take some hard work and patience!

Brought to you by:
Flat Branch Mortgage, Inc.
Posted by: Eric Hemmer

Will Things Get Worse?

The above question is something that seems to be on everyones mind lately. I recently (last week) received 4 phone calls from past clients facing some very serious decisions. Two of them had lost their job due to the current economic woes and the other two had seen their salaries cut by 40%! ALL had serious concerns on how they were going to keep their homes. These people weren't victims of financial mismanagement or irresponsible, they have simply felt the wrath of today's economic reality. Things are bad and they could get worse.

Most economists are predicting 2009 to be a replica of 2008. I know this does not come as "things we like to hear" however, this is the reality of where we are at. Why sugar coat times like these? False hope can only lead to disappointment and perhaps even further stress about the "if's". I for one am fairly optimistic about the gentlemen we have taking office tomorrow and the staff he has put together to hopefully change things for the better. This is not a political forum however Mr. Obama has plans for a $775 billion stimulus package, 2.5 million jobs, financial services reform (yes this includes the "asleep at the wheel" SEC) and a wholesale list of other items that need to be addressed asap! Hold your head up high and stay focused and things will work out. We all will be better people from facing these challenges.....perhaps we cannot see it now but "the mark" this economy has left us will hopefully be erased over time.

Brought to you by Flat Branch Mortgage, Inc.
Your Mid-Missouri Mortgage Lender
Posted by: Shawn Von Talge

Absolutely Unreal Times!

I thought I had seen it all but every time I feel things have ran there course another whirlwind hits us. I'm sure it's no surprise but December holiday sales were down 2.7% and excluding auto's were down 3.1% more than double the expectations by most economists of 1.3% and marked the first calendar year decline ever! The DOW is down over 200 points, treasuries are skyrocketing with yields in the low 2's and guess what our friendly and ever rate influencer (known as MBS) have traded "sideways" for 4 consecutive days which means stagnant mortgage rates.

The primary problem we are seeing right now is the banks not translating today's current economic rate environment onto rate sheets and thus customers. For instance, we have two BIG lenders that are so overwhelmed with business that the only way to keep it from coming in is to raise rates! That way bankers and brokers are forced to use other avenues but hey guess what? Almost all banks are doing this to some extent. Simply put the banks are now too busy to handle the volume of business and do not want to "staff up" to cover it because of fear that this refinance rally will be short lived. The general public cannot win for losing and it's getting extremely frustrating to sit on the sidelines and watch this happen. Ben Bernanke stated yesterday (paraphrasing) "If $600 billion of GSE/MBS buying doesn't do the trick, then we'll buy another $600 billion. And if treasury traders even think about donning the vigilante hat of taking market matters into their own hands in a sign of policy protest then we will set up a bear trap of buying term treasuries in size." Bluntly put stopping messing with our market presence or you will pay!

It's nice to see the government take such an active role in trying to influence consumer rates and in particular mortgage rates however, to date the moves have not been doing what was planned as it seems sellers and treasury traders are making their presence felt!

Brought to you by Flat Branch Mortgage, Inc.
Your Mid-Missouri Mortgage Lender
Posted by: Shawn Von Talge

City of Columbia Home Ownership Assistance Program

Today Flat Branch started making the rounds to local real estate offices to inform everyone about the recent changes to the City of Columbia Home Ownership Assistance Program. In the past this program was only available in the central city. Now it has been expanded to include anywhere inside the city limits! This is a wonderful change. This program offers a $5000 grant for Down Payment and Closing Costs. This program is more valuable than ever with the recent back tracking changes to mortgage products. Gone are 100% programs and most are using FHA loans which carry a 3.5% down payment. This is where this money can come in handy! You can still obtain seller paid closing costs to further assist, which almost everybody takes advantage of these days. I believe there are even additional funds available from the city program on a case by case basis.

Below are the qualification criteria:

Qualification 1 : You must be a first time home buyer (defined as someone who has not owned
a home in three years) or be a single parent. (defined as or an individual who
unmarried or legally separated and who has one or more minor children or is
pregnant.

Qualification 2: Make less than the following income limits:
Family Size / Income
1 person / $34,700
2 persons / $39,700
3 persons / $44,650
4 persons / $49,650
5 persons / $53,550
6 persons / $57,550
7 persons / $61,500
8 persons / $65,450
Important Note: If they are a single person who is not disabled or elderly and are buying outside of the old assistance area (central city), the income limit is $26,025

Qualification 3: Complete the Home Buying 101 class ($10 cost)

Qualification 4: Buy a home which passes the inspection. This includes the city inspection and
a structural inspection.

The bottom line is that the City is stepping up in a big way to do their part to help prospective buyers out and I think it is great! Flat Branch will of course do our part as well. With interest rates currently hovering around historic lows, it makes for a good combination.

Brought to you by:

Flat Branch Mortgage, Inc.
Posted by: Eric Hemmer

The Mortgage Rate Myth

We all know that a small refinance boom is taking place and I cannot say enough how thankful I am to be swamped with business. However, I continue to get phone call after phone call with regards to the "media driven" 4.5% mortgage rates. First, let me say that mortgage rates are NOT at 4.5%! Second, today's environment is much different than the past. We now have "risk based pricing"; meaning depending on the borrowers risk (i.e. loan-to-value, credit score, type of home, and loan amount) will very much influence the rate at which the borrower can get.

For instance; a person with a 700 score, putting 10% down on a single family residence will more than likely get a higher rate than someone with a 740 score putting 20% down on a single family residence. Both are great scores however with "risk based pricing" anyone who has a credit score below 740 will take a "hit" to the rate. Let me reiterate so when you hear your friend, co-worker, or family member talk about the 4.875% rate they got; EVERY SINGLE INDIVIDUAL AND MORTGAGE APPLICATION IS DIFFERENT and NOT EVERYONE WILL GET THE SAME RATE.

It simply seems the media has got the general public fooled to think that if they can't get a mortgage rate in the 4's then something is wrong! Nothing could be further from the truth and ever since we started this "refinance rally" rates have not hit 4.5% not ONCE! So keep things in perspective when you are speaking with mortgage professionals. We want to get you the best rate possible but cannot work magic tricks in order to do it. If you qualify for 5.25% on a 30 year fixed that is a darn good rate! Don't be fooled by gimmicks and rates quoted below what the banks and mortgage companies are telling you over the phone. Are there points, broker fees, bank fees, origination fees, are they "portfolioing" the loan, what are closing costs? These are questions that you need to ask and you also need to know your credit score and loan-to-value.

Brought to you by Flat Branch Mortgage, Inc.
Your Mid-Missouri Mortgage Professional!
posted by: Shawn Von Talge