An important piece of the pie!!!

Thursday, July 26th, 2007 | Money, Real Estate | No Comments

The importance of a good loan officer cannot be more stressed. I have aligned my self with excellent professionals in the lending industry and as always found them to great asset. Lynn Doiron is just that Loan Officer. Hopefully this article will shed some light!

 http://money.cnn.com/2007/07/24/real_estate/salesman_factor.moneymag/index.htm?postversion=2007072609

Phil Putnam Jr 

The Wrap is Back

Friday, July 6th, 2007 | Money, Real Estate | No Comments

Long ago, before many of you will remember, interest rates were so high that solutions had to be found to purchase a home. Back when Carter was President we heard a statistic called the misery index. Interest rates were in the high teens! Inflation was double digit! Unemployment was triple what we see today. It was extremely difficult to purchase a home. The news was reporting that home ownership for the masses was dead. But homes were bought and sold. Home ownership for the masses is at record levels. One of the solutions used in that era was “the mortgage wrap.” Now that the home spike has leveled off it looks like it is time to take “the wrap” off the shelf, dust it off, and put it to work again.

A wrap is a legal way of purchasing a conventional or VA mortgaged home that allows the seller to carry some of the equity and the buyer assumes the mortgage from the seller. The title company or other third party receives the buyer’s payment and distributes it to the mortgage company and the seller without triggering the “due on sale” clause of the mortgage. There are some that believe the “due on sale” may be triggered. I recently attended a seminar by Judy Powell at Chicago Title Branch Manager powellj@cit.com who says that a proper wrap will not trigger the “due on sale” clause.

For more information, read the article at http://realtytimes.com/rtcpages/20040531_wraparoundmtg.htm

Why Buy a Home?

Friday, July 6th, 2007 | Investment, Money, Real Estate, Statistics, The Economy | No Comments

According to a recent study the economic and social benefits of home ownership are enormous. Just one statistic from this report shows the importance of owning your own home. In 2001 the median net wealth of a renter household is $4,800, while the median net wealth of a homeowner household is $171,700. This report is not showing how the rich get richer and the poor get poorer. It shows that home ownership improves both financial and social position of the family that owns its own home.

The main reason that wealth is accumulated with ownership versus renting is that rent goes into the wealth accumulation of the building owner and not the renter. If you are the owner and rent from yourself, you are building your own wealth. If the owner is someone else, you are probably building their wealth. This wealth is built in three ways:

• Appreciation – Real estate in a growing population increases in value over time. Increases from 3 – 7% are normal in a stable, or especially, in a growing population.
• Home Improvements – Homeowners can invest time, money and effort to provide a greater degree of livability while living in a home that can translate to increased property value.
• Mortgage Payoff – Mortgage payments can be structured to pay off the mortgage loan over a set period of time – 15-30 years. Every mortgage payment decreases the mortgage debt and therefore increases the net wealth of the owner.

The economic and social reasons to purchase a home now are impressive. The reasons to wait need to be considered. Let’s list some of the reasons to buy now and not to wait:

Reasons not to buy:

• Credit problems
• No down payment
• Higher monthly payment
• Paying too much and values go down
• Too much work

Reasons to buy

• Begin building wealth
• Secure a low mortgage rate
• Lower risk of crime
• Children doing better in school
• Stable home life
• Something of your own
• A hedge on inflation
• Improve the home as I like
• Get increased wealth on home improvement
• Make a home purchase in a buyer’s market
• Save money on taxes

Looking for a home can be a lot of fun. You can have an enjoyable family outing and your Realtor® will even supply the vehicle and gas! Start by interviewing lenders and Realtors®. The people you choose are critical to the home buying process. Get enough information to know the right questions to ask. Check references. With the help of your two new advisors, start listing what you want and begin the process of finding it. Enjoy the process of looking at what is available at what price. You will soon be able to know what is over priced and what isn’t. When you see a good deal that fits your needs, take it!