The Credit Crunch

Watched the evening news lately? The mortgage market is crashing due to what is being called a ‘credit crunch.” Less than perfect loans called “sub-prime loans” have default rates too high and most of these loans are held by mutual funds. When these funds post losses, investors pull their money out, causing the funds to have a cash shortage. Well, mutual funds and Wall Street are big mortgage buyers. When a mortgage company makes a loan they pool that loan with many others and sell the loans to investors on Wall Street. These investors, who are taking losses in the mutual funds, are now spooked about buying additional loans from lenders. This, in turn, causes lenders to tighten their guidelines on tough credit borrowers and on those who cannot fully document their income.

Will this credit crunch go away? Yes.
Can you still get a mortgage at a great rate? Yes.

If you’re currently thinking of selling or buying and wondering how this will affect your transaction, contact us for an analysis of what types financing are best for you or your buyers. We’ll help you structure the deal properly to avoid any surprises due to the tightening loan market.

Reid Mitchell Mortgage Banker National City Mortgage Office: 817-337-8505 Cell: 214-957-2783 www.ncmc.com/reidmitchell
13 years experience, 9 years at Nat City

I Don't want to make that mistake again!

Wow! 102 degrees not only feels uncomfortable but can actually be dangerous. Here is the weather advisory from the weather channel.

"PERSONS INVOLVED IN VIGOROUS OUTDOOR ACTIVITIES ARE URGED TO TAKE FREQUENT BREAKS AND DRINK PLENTY OF WATER. WEAR LOOSE FITTING AND LIGHT COLORED CLOTHING. BE SURE TO CHECK ON PERSONS WITH HEALTH PROBLEMS AND THE ELDERLY... AS THEY ARE THE MOST SUSCEPTIBLE TO HEAT EXHAUSTION AND HEAT STROKE. NEVER LEAVE PEOPLE OR PETS IN AN ENCLOSED VEHICLE...EVEN FOR A SHORT TIME...AS TEMPERATURES CAN QUICKLY RISE TO LIFE THREATENING LEVELS."

DRINK PLENTY OF WATER! I can't make that statement enough. It's no fun getting heat exhaustion - I made that mistake once. I don't want to end up packed in ice again because I didn't drink enough water on a 100 degree + day. Most of us know that it gets very hot here in Texas, but for the first half of the summer, we had clouds and rain. Now, welcome to our real Texas summer, heat advisories and all.

If you are selling a home that is vacant, remember to keep your air conditioner on. Potential home buyers need to be concentrating on looking at your home, not on the heat in the house. You might even consider leaving bottled water on ice or in the frig(if it's there) for potential buyers. Be sure to leave a note letting them know it's for them. Let them comfortably cool off, rehydrate, and spend time imagining themselves in the comfort of the house you have for sale

If you're the one looking for a home in these high temperatures, drink plenty of water before, during and after viewing homes. Children and elderly parents are best left at home. Though they may want to go with you, explain that once you narrow your search, they can go back for the second showing. Getting in and out of cars even without the heat can be exhausting. If they want to get an idea of what you are loooking at, show them on our MLS search engine at FreeCustomHomeSearch.Net. Type in the MLS number and they can view available pictures, virtual tours and see descriptions.
Once again, remember to dress in light, loose fitting clothing and DRINK PLENTY OF WATER!

If you are not ready to go out into the heat and still want to search properties from the comfort of your home or office you can save searches and get updates to your email from KerriRichProperties-Search Saver. You will also be updated by email of all new listings that come available that match your search criteria.

Our friends got money back and we didn't?

Here are the rules. Normally borrowers only get money back in a cash out refinance transaction. However, buyers may get money back for a number of factors.

1. They may be getting part of their earnest money back at closing (money they already put up). On the closing HUD, their credits exceed their debits.
2. They may be getting money back that is earmarked for pools, barns, fences, repairs, etc. This is specific to the buyers’ loan and is not always an option. Typically, it will be held by title co. and given to contractor upon completion of repairs, etc.
3. They may be getting seller or lender paid money that must be applied to closing costs. Again, their credits exceed their debits.
4. They may not have an escrow account that pays their taxes. Pro-rated taxes they receive from the seller could seem as cash back. In reality, it is not. That money will be due at end of year.

Technically, home buyers can only legally get money back at closing through these scenario's. Real estate deals are complicated and often times parties may not realize what the monies are for...thus the need for a real estate professional to sort out the details...contact Kerri Tullous or Rich Martinez for rescue! Click here for more real estate news.

Written by Reid Mitchell, Mortgage Banker at National City Mortgage

"Dog House-Pent House" Selling your home with pets.

I write this with no less than 110 lbs. of furry companionship within 3 feet. A Catahoula mix, Macey, and a short-haired bird dog, Ottie, are my constant "work-at -home" companions. This is for you who have compassion and a PASSION for your pets.Moving and having your home on the market is difficult for all involved, including your dogs. The sweetest of K9s may be fearful or protective with strangers in their home, especially with you not present.A few suggestions:

• If your pets can stay with friends, family, etc., GREAT
• Crates are next best solution. If your dogs are prone to bark, warn appointment service.
• If dogs stay outdoors, tell appointment service. Buyer typically will come back for a second showing. At that point, you may need to take pups elsewhere or be there with them through showing.

Bottom line, many people are scared of dogs and many dogs are protective around strangers. Never leave your pups inside alone when your home is being shown. You not only restrict potential buyers but you put your dogs in uncomfortable positions where they may not know how to react, whereas you would be liable. Also read article from TexasRealEstate "What should I do with my pets?"

Get your FREE estimated market analysis on your home at: Fort Worth, Dallas , Texas House Values.

Am I Ready to Buy a Home?

Thinking about or in the process of purchasing a home? Remember credit score is critical! Watch what you purchase! Anything that changes your debt/income ratio or any type of credit you take on while trying to get a home loan: car, boat, furniture, ect…that you finance will affect your credit score. Do not make any big purchases before or during the process!
Find out what your credit score is. The higher your score,the better. Low scores unfortunately will hurt your buying power and affect your the interest rate.
You can get copies of your credit report free from all three credit bureaus once a year. Check them make sure they are correct and that you have not been a victim of identity theft. You can dispute discrepancies in these reports. Do whatever it takes to improve those credit scores to get the best possible interest rates, ultimately saving thousands of dollars throughout the loan.

For more information on home loans and improving your credit score contact us or our partner at National City Mortgage, Reid Mitchell. http://kerririchproperties.net/