Real Estate and Beyond Blog: January 2010

LUKE AIR FORCE BASE REAL ESTATE VA LOANS WITH CREDIT CHALLENGES

APPLY FOR A VA LOAN RIGHT NOW

Many Americans today are facing some sort of credit challenges and the banks are looking at peoples FICO scores more closely. They want to know your credit history in more detail. They want you to explain late payments along with other negative items on the credit report. VA will review a borrower's past credit performance in determining the loan for approval. They are looking for borrowers who have made payments on time for the last twelve months. That is the magic number. This shows that this person is worthy of having a mortgage to pay future debts. However, people with negative credit such as judgments, liens and charge offs is not a great candidate for a VA loan. 

Here is a list of areas on one's credit report: 

I HAVE LATE MORTGAGE PAYMENTS

My parents instilled in me to pay my bills on time with no questions asked. So, I pay my bills on time. I am teaching my children to do the same. I never miss a mortgage payment. There are no exceptions on this payments. A person showing great mortgage payments is a great mortgage candidate in great standing. However, an underwrite will look over the file in more details when there has been a mortgage late payment. However, the underwriter is looking for twelve consecutive payments after the deragatory date. We all have periods of our life when we have credit challenges. I believe it is called life and the underwriter understands at times if explained the correct way.

I HAVE A CHAPTER 7 BANKRUPTCY

A borrower is elegible for a VA loan after two years of the discharge date and not the filing date. We had a borrower call the VA loan with this same scenario. He will be fully approved after 3/12/2010 under these guidelines. The borrower will have to explain in detail about the bankruptcy. 

I HAVE NO CREDIT SCORE 

A borrower will need to provide payment history on rent, utilities, cell phone bills etc. The underwriter wants a history of on time payments to show credit worthiness to repay back the loan. 

I HAVE A CHAPTER 7 BANKRUPTCY

The VA guidelines state that a minimum of two years must elapse since the discharge date of the borrower and / or spouse's Chapter 7 bankruptcy, not the filing date. A full explanation of the bankruptcy will be required. The borrower must also have re-established good credit, qualify financially and have good job stability.

I HAVE A CHAPTER 13 BANKRUPTCY

Yes, one can still obtain a VA loan as long as the borrower is still paying on time for one year or more. One cannot be late with payments. Yes, you will have to explain the bankruptcy at this time. Plus, the borrower must have establised trade lines to obtain approval. 

I HAVE A FORECLOSURE

One must wait two years before they purchase a primary residence under the VA loan.

I HAVE COLLECTIONS AND  JUDGMENTS

This is up to the underwrite when it comes to this section. Some collections and judgements must be paid off.

APPLY FOR A VA LOAN RIGHT NOW

We have formed a strategic partnership with Praxis Credit Consulting to assist people in restoring their credit score to be in position to obtain conventional financing. Yes, one can do it yourself. However, there are times when it is best to hire a professional. Just tell them Harry sent you and they will take care of you. They are people that want you to be successful. Real estate is a team sport.

PLEASE VISIT OUR WEB SITED WHEN IT COMES TO LUKE AIR FORCE BASE REAL ESTATE AT WWW.LUKEAFBREALESTATE.COM

SEARCH FOR HOMES NEAR LUKE AIR FORCE BASE

LUKE AIR FORCE BASE REAL ESTATE VA LOANS AVAILABLE NOW FOR VETERANS AND ACTIVE MILITARY

This year the VA Home Loan program will receive over $6 Billion in funding this year. This funding creates one of the only options left for a $0 down payment home loan, which is why each month, thousands of families take advantage of their VA Home Loan Benefits.

The VA loan is a great benefit for those who have served, or still serve, in the U.S. Military. Veterans and current military members, and their surviving spouses, may be eligible for the security and benefits of the VA loan. Qualifying for a VA loan is a right you've earned as a veteran or service member. The Lending Company, using our state-of-the-art technology - coupled with our award-winning customer service, will help you cut through the red tape to get your VA loan quickly and easily.

PLEASE VISIT OUR WEB SITED WHEN IT COMES TO LUKE AIR FORCE BASE REAL ESTATE AT WWW.LUKEAFBREALESTATE.COM

SEARCH FOR HOMES NEAR LUKE AIR FORCE BASE

The Lending Company offers 15- and 30-year fixed-rate VA loans.

Buying a home with a VA loan APPLY FOR A VA LOAN RIGHT NOW

• No down payment required
• Qualify for up to $417,000 with our VA loans
• Less than perfect credit not a problem
• Seller can pay your closing costs
• No monthly PMI (private mortgage insurance)
• Funding fee can be rolled into your loan
• Lower Rates
• Easier to sell a home when you want to move because the loan is assumable.

Refinancing with the VA loan  APPLY FOR A VA LOAN RIGHT NOW

• Refinance up to 90% of the value of your home
• Cash-out refinance also available
• Funding fee can be rolled into the refinance
• An existing VA Loan can be refinanced with an Interest Rate Reduction Refinance Loan (IRRRL) without an appraisal and no credit qualifying in most cases

Ask about our increased Maximum Guaranty Amount for veteran home loans to as much as $729,750. That's great news for VA Jumbo Loan borrowers!

SCHOOLS NEAR LUKE AIR FORCE BASE

APPLY FOR A VA LOAN RIGHT NOW

LUKE AIR FORCE BASE REAL ESTATE ARIZONA FREQUENTLY ASKED QUESTIONS

Luke Air Force Base has many people relocating to Arizona because it is one of the finest Air Force Base in the World. So, we have provided www.lukeafbrealestate.com to be a great resource for people relocating to Arizona. We know how challenging it can be to move at a moments notice. Please visit our web site for further information.

We have put together Frequently Asked Questions for your convenience. Please read on.......

What is the definition of an escrow?
The definition of an escrow can be defined as in the keeping of a third person for delivery to a given party upon the fulfillment of some condition. Escrow acts as a third party between a seller and a buyer during the entire process. Escrow is opened after an executed contract between a seller and buyer to purchase a home. The title escrow officer acts as the third party to ensure both sides are treated equally. Furthermore, the title escrow officer brings all the documents together to be signed by both parties to have a successful closing.

What are the mechanics of the escrow process?All monies, instructions and documents necessary to close the transaction flow through escrow. These funds do include escrow monies, down payment, closing costs and any other necessary monies to have a successful transaction. The escrow officer enforces the terms of the purchase contract and lender's requirements at escrow. Other duties at escrow include title insurance, hazard insurance, and grant deed from seller to buyer. All parties involved in the transaction must sign ALL necessary documents along with proper funding to have a successful closed and funded transaction.

How does one open an escrow?
The real estate agent opens escrow for the buyer. Personally, I obtain a check from my buyer to open escrow within 24 hours of an executed contract to show the seller that we are serious. It is vital to have a seasoned title escrow officer on your Team. Finally, I obtain a receipt to show proof to the seller and buyer that escrow has been opened.  

What information will one have to provide?
The title escrow officer will ask for one's driver's license or passport for as personal identification. This is called a statement of identity. The escrow officer acts as a Notary during this transaction to confirm all documents have been legally executed by both parties. This is a normal process in all transaction.

PLEASE VISIT OUR WEB SITED WHEN IT COMES TO LUKE AIR FORCE BASE REAL ESTATE AT WWW.LUKEAFBREALESTATE.COM

SEARCH FOR HOMES NEAR LUKE AIR FORCE BASE

How long does it take to complete the escrow process?
The average number of days is between 30 to 45 days. Currently, the banks are taking longer in underwriting because there is a refinance and purchase boom going on at the current moment. That means it is taking longer to process the loan in underwriting. Both sides must be patient and know that the transaction will close in due time.

Steps to applying for a mortgage.
A buyer obtains a preapproval letter from a mortgage professional showing the amount one can spend on a home. This allows a real estate agent to start shopping for a home and put in offers on behalf of the buyer. Once an offer has been accepted by both sides, then escrow is opened. Now, the buyer must go through underwriting to obtain the official approval with no conditions when it comes to a mortgage.

APPLY FOR A VA LOAN RIGHT NOW

What documentation do I need when applying for a mortgage?                 
Currently, all lenders are requiring all buyers to be full documents in order to show that they can afford the mortgage. The mortgage professional will ask for the following information from a buyer:·       Last 2 years of Tax Retuns·       Last 2 months of bank statements·       Last 2 pay stubs·       Copy of Driver's license and Social Security CardAll this documentation is packaged to be submitted to the underwriter for further investigation. They must verify all information before granting a mortgage. The lender will require one to obtain hazard insurance.        

When and where do I sign loan docs?
The real estate agent representing the buyer will notify his/her client that loan docs are prepared for signing. An appointment is made that is convenient for the buyer and escrow title officer. The escrow title officer will notify the buyer if funds are needed to close the transaction. A cashier's check from one's bank is always preferred. Otherwise, the title company must wait until the check clears to close and fund. The loan docs are sent back to the financial institution funding the loan. Then, the rest of the funds are sent to title by the lender.   

How to take Title to Home? The escrow title officer will explain to the buyer the different way to take title to the property. One can make this decision at the signing. One must consult with their lawyer and/or tax consultant to ensure accuracy on one's best interest. It is always better to be informed since this is one of the biggest transactions in one's life. The Real Estate and Beyond Network is always available. 

How does an escrow close?This is a great day for both sides because it involves the legal transfer of title from the seller to the buyer. The Grant Deed and Deed of Trust are recorded within one working day of the escrow's receipt of loan funds. This signifies the "close of escrow." The escrow title officer takes care of all the details. The original deed to one's home will be mailed directly to one's new home address. This process can take two to four weeks.

ConclusionPersonally, I have closed hundreds of escrows over my real estate career. The Real Estate and Beyond Network is a complete one stop shop for buyers and sellers when doing real estate in the Greater Phoenix Metropolitan area. Please visit the following web site at www.deliteam.comor listen to the weekly Real Estate and Beyond Radio Show heard each Saturday from 12-2PM Phoenix Time on KKNT 960 AM. Make the Call, Set the Plan and Do the Deal$.

PLEASE VISIT OUR WEB SITED WHEN IT COMES TO LUKE AIR FORCE BASE REAL ESTATE AT WWW.LUKEAFBREALESTATE.COM

SEARCH FOR HOMES NEAR LUKE AIR FORCE BASE

LUKE AIR FORCE BASE REAL ESTATE RELOCATION LOCAL SCHOOLS ARIZONA

Personally, my wife and I have relocated several times over the past twenty years. We know how it is settling into a new area. It is all about connecting with people as fast as you can. It is much different with kids because parents want to ensure that their kids are enrolled into a great school. Here is some information on local schools around Luke Air Force Base.

PLEASE VISIT OUR WEB SITED WHEN IT COMES TO LUKE AIR FORCE BASE REAL ESTATE AT WWW.LUKEAFBREALESTATE.COM

SEARCH FOR HOMES NEAR LUKE AIR FORCE BASE

Glendale Elementary School District #40 is located in downtown Glendale, Arizona. Comprised of sixteen K-8 schools servicing more than 13,000 students, Glendale Elementary School District (GESD) strives to meet the technological challenges of the future. Aiming to achieve educational excellence, we strive to provide the best educational programs for our children. GESD's accomplishments include:

1. Challenger Middle School has twice been named one of five Arizona A+ Schools.
2. Two of our schools were selected as Arizona Literacy Sites.
3. GESD teachers have received national, state, and local recognition including: Arizona's Middle School Educator of the Year: Arizona Hispanic Educator of the Year; Glendale Jaycees' Outstanding Young Educator of the Year, National Bilingual Teacher of the Year runner-up, Director of All-State Band and Chorus, NASA's Christa McAuliffe Fellowship second place winner, Presidential Award for Excellence in Elementary Mathematics, runner-up for National Teachers Training Institute, and many other honors.
4. Awards for excellence in financial reporting, outstanding safety practices and an outstanding public relations program have also been bestowed upon the district.

Some of the special programs and services offered by Computer network; Preschool Programs; Extended Day/Afterschool Care; Summer School; Migrant Student Programs; Special Education, Community Education Programs, and Adult Education.

PLEASE VISIT WWW.GREATSCHOOLS.COM to continue your research on local schools.

For more information, visit the Glendale Schools website or check this site Glendale District Information Site to see what school your child would attend.

PLEASE VISIT OUR WEB SITED WHEN IT COMES TO LUKE AIR FORCE BASE REAL ESTATE AT WWW.LUKEAFBREALESTATE.COM

SEARCH FOR HOMES NEAR LUKE AIR FORCE BASE

Should I Work With A Buyer's Agent? - A Seller's Agent? A Dual Agent?

You should understand from the beginning of your relationship with your real estate agent what type of relationship exists. In most states, real estate agents (both brokers and sales associates alike) are required by law to let consumers know whether they represent the buyer or the seller.

In the past, real estate agents represented the seller exclusively, whether the agent helped a seller to market and sell the home or helped a buyer find and purchase the home. In other words, agents were at one time legally bound to represent the seller in a residential real estate transaction. In that same scenario, the seller paid both the listing agent and the agent who brought the buyer.

However, in today's real estate market, you may find that you can choose between a wide variety of options for representation. If you want to sell a home, you can work with a "seller's agent". If you are purchasing a home, you can work with a subagent of the seller's agent and, in many areas, you can engage an exclusive "buyer's agent".

LUKE AIR FORCE BASE REAL ESTATE BLOG

An additional situation in some states is dual agency. This type of agency exists when the buyer decides to have the seller's agent prepare the offer on the buyer's behalf. A buyer who elects this situation, and all additional parties to a transaction, should receive full disclosure of representation. In some states, dual agency also affects the real estate professional's fiduciary responsibilities to the seller.

Keep in mind that real estate laws differ from state to state and even from locale to locale. And within this framework of variety, laws can change. For more in-depth answers for your specific situation, talk with a knowledgeable real estate professional and ask about local practices. Be sure that you understand and are comfortable with the options involved when you engage the services of a real estate agent.

PLEASE VISIT OUR WEB SITED WHEN IT COMES TO LUKE AIR FORCE BASE REAL ESTATE AT WWW.LUKEAFBREALESTATE.COM

SEARCH FOR HOMES NEAR LUKE AIR FORCE BASE

LUKE AIR FORCE BASE REAL ESTATE LITCHFIELD PARK, ARIZONA RELOCATION HOUSING

Harry knows how difficult it can be when you get new orders and have to pick up and move (again?) to a totally new state. You need the support of an expert who can advise you on every nuance of your relocation. Remember, your home is one of the most important investments and decisions you'll ever need to make. But don't worry, you needn't feel either lost or confused, as long as you have the right team of real estate professionals on your side.

PLEASE VISIT OUR WEB SITED WHEN IT COMES TO LUKE AIR FORCE BASE REAL ESTATE AT WWW.LUKEAFBREALESTATE.COM

SEARCH FOR HOMES NEAR LUKE AIR FORCE BASE

With a truly skilled and knowledgeable real estate agent, such as Harry D'Elia, you'll be able to decide what is really important to you and what doesn't matter so much, to let you maximize the potential of your available finances. Remember, all Realtors aren't created equal, so you need to make absolutely certain you've chosen the right one - or your mistake could end up costing you thousands of dollars.

So what exactly should you look for in a new home? Well, that's completely up to you, but Harry will know the right questions to help you narrow it down to a reality you can afford. These questions include:

• What is more important-building or the property?
• Do you want to live close to the base?
• Do you want a single family home or condo?
• Do you want a big or small backyard?
• Do you want a pool?
• Do you need a garage or not?

APPLY FOR A VA LOAN NOW

You may not be able to have absolutely everything you've ever dreamed of, but with the help of the Real Estate and Beyond Team, you'll be able to obtain as much as today's market will allow.

Keep in mind that as a buyer, you'll always be in competition with all of the other buyers who are also looking for your perfect home. In the end, it all comes down to the quality of the Realtor you have, to find out who will end up with the advantage in the end.

Of course, you can only make an offer on your house if you see it before the competition gets there. That's why Harry makes certain that each member of the team knows the market inside out, saving you valuable time by showing you only the homes that fit your own specific needs.

When you're working with Harry and his professional real estate team, you'll have highly trained specialists on your side, who will dedicate themselves to making certain that your dream home is yours, and at your price. He'll move mountains to make your transition a smooth one.

SEARCH FOR HOMES NEAR LUKE AIR FORCE BASE

HOW DID YOU OBTAIN MY CONTACT INFORMATION? I READ YOUR BLOG.

I was just reflecting on this past year on my blogging experiences. I started my blogging venture last April. It is hard to believe where I am at today because of my ActiveRain Blog. Yes, people really do read your blog. I wrote another blog on NOBDODY WILL READ MY BLOG. I WAS WRONG. One must be dedicated to blogging on a daily basis in order to achieve results. It is not about the points for me at this time. It is about writing about imortant real estate topics that will generate higher results in the Google Search engines.

Why do you participate in all of the AR contests? I enter into the AR contests to show support and to lead by example for other bloggers. Bob has some awesome contests that we can all learn from one another. The last contest on Internet lead conversion was excellent. I was able to read ALL of the posts on this particular subject to improve my processes and procedures. It is a give and take when you are a blogger. One must give more than take when blogging online. Agree?

 Many of you know that I am pretty active on Arizona Trustee Sales. I teach people how to fix and flip homes in the Phoenix, Arizona market. Am I the only one doing it? No! However, I am the only one consistently blogging about my experience in order to gain more Internet exposure. Here is an example of a call that I received on Monday

Caller: Hi, I am looking for Harry. I am interested in purchasing from the Arizona Trustee Sales

Me: Fantastic! I am very excited to assist you in your venture. How did you get my contact information?

Caller: I was searching on Google that led me to your web site. I had to contact you right away.

Me: Great! When are you available to meet so we can create a game plan?

Caller:I can meet this Wedensday

Me: OK-Looking forward to meeting up with you. Thanks for the call.

I was trying to recruit another agent to my Real Estate and Beyond Team. I was sharing this example on how I obtain my clients. He was in disbelief. So, he did not see the light. Grandma would always say "proof is in the pudding." I am eating my pudding up each day.

Please share your success stories with us today!

Here are 5 Reason to host an open house:

1. Spirits - hosting an open house keeps you active in real estate and can lift spirits when in a slump. 
2. Relationship - kindle the relationship your building with your seller.
3. Experience - you won't learn if you stay cooped up in your own home. 
4. Leads - generate buyers leads.
5. Knowledge- spending time at the house will give you more knowledge about the property and enable to you better sell it over the phone, or in writing, through detailed description.

Here is a check list to use when conducting an open house:

1. Clean and Photograph Home
2. Advertise Open house the weekend before and weekend of
3. Create a "home summery" sheet to hand out to those who come to your open house. 
4. Create a sign in form for prospective buyers.  Idealy you want name, phone number, e-mail address, and mailing address.
5. Lock up any and all valuables in the house.
6. Request home owners to be away from home during open house.
7. Bring blank purchase agreements.
8. Bring a comp analysis to justify your sales price.
9. Arrive at house 2 hours prior to open house.
10. Locate a dollar store near home for any last minute supplies, cleaning items, candles, ect...
11. Put up directional signs on major intersections and in the neighborhood.
12. Create a follow up form to collect feed back from those who toured the home.

I AM UPSIDE DOWN IN MY RENTAL HOUSE. I HAVE PERFECT CREDIT. WHAT DO I DO?

Hi! We had a caller into our Real Estate and Beyond Radio Show here in Phoenix, AZ, a month ago. He had an ethical question regarding his rental. He was about $50K upside down in his rental. However, he just finished remodeling the rental with a great tenant. However, he did not like being upside down on his rental. He was seeking advice from two guys on the radio show. We have been doing the radio show for the past four years to be the source for people to call for real answers.

We asked him the following questions

1. Do you like your rental home? He answered YES
2. Are you behind in your payments? He answered NO
3. Are you in a financial hardship? He answered NO
4. Are you open to solutions? He answered YES

We love receiving this type of phone calls because it challenges all of us. So, here was his scenario. His primary home was paid off. The value of his primary house was about $310,000. His rental house was worth about $100,000 and he owed $150,000 on the current mortgage. My mortgage partner did a cash out refinance to pay off the entire mortgage on his rental. Currently, he has a $150,000 mortgage on his primary house to receive a tax deduction the interest payments. Plus, the money he receives from his rental pays his primary house payment. The client was totally happy. Now, he is ready to fix and flip in the Phoenix real estate market.

We are here to serve the community.

BERNANKE IN OR OUT? TERM END JANUARY 31ST, 2010

It seems that Ben Bernanke has a big week this week. Three weeks ago the press stated that Mr. Bernanke was a sure win for a second term for his post. Then, news broke out that many Senators will not be voting him in for a second term. I am telling you that news sells. President Obama is confident that he will have enough votes to be voted in for a second term. Many people feel that he should of saw the recession coming. Does he have a magic crystal ball that we do not know about? Do we blame the 9/11 attack on the World Trade Towers in New York City on President Bush. This is not the time to play politics at this time. We have to show the world that we are confident in our financial decisions and we are moving in the right direction.

"The Federal Reserve will benefit from a fresh start," Cornyn told "Fox News Sunday." "I'm not saying Bernanke didn't do a good job, but I think he should have seen (the recession) coming." Fox News source

Politics is all about pointing the finger of blame. However, there are three fingers pointing right back at that person. We need to stand united and get through this time as Americans. It is best to leave him at his post until we get over this hump.

Many Republicans are blaming him for the following things:

• Not quick enough to respond to financial crisis
• Too generous to Wall Street when it came to the Federal bailouts
• Not enough regulations on banks during this time

DO YOU THINK BEN DESERVES A SECOND TERM?