It was quite an honor to be selected as the Fort Collins Board of Realtors Rookie of the Year for 2008.  It was very humbling to be selected.  It was also great to have friends and coworkers there to share this event with me.  Mike Jensen, Matt Evans and Laurie Dubose were three of the people who really helped mentor me and I am so thankful that they were there to share the evening with me.  There were also several other members of the KW team there as well. I was told that my GRI completion was the deciding factor in a very close contest.  I believe that the time I spent Studying and earning the GRI designation not only helped for this award, but it has gone a long way in preparing me to better serve my clients now and in the future.  I completed my first two transactions before I bega... 12/12/2008

The Fort Collins Board of REALTOR's has selected David Timm as Rookie of the Year for 2008!   It was a great celebration!   The Rookie of the year is decided by looking not only at sales, but on the Realtor's community involvement, Board involvement and a commitment to continuing education.  This years winner Completed several transactions but as importantly has served his community through church, Habitat For Humanity, and the Cause Kids Count Foundation.  www.causekidscount.org David also earned his GRI designation in his first year as a Realtor. The Fort Collins Keller Williams team Came out in force to support our rookie candidates.  From Left: Rick Kness, Matt Evans, David Timm, Mike Jensen and JoAnn Johnston. David is commited to serving Northern Colorado as a real estaste service... 12/12/2008

Colorado Mortgage Broker Licensing In response to the troubled national real estate market and Colorado’s high volume of home foreclosures, efforts have increased to make higher caliber professionals involved in real estate. Licensing, rules and regulations have become more stringent for agents, appraisers, title companies and mortgage brokers.  In regards to mortgage brokers, the below items are mandatory.  No longer can someone open up the Yellow Pages, claim to be a mortgage broker and then be compensated for placing a loan --- what a novel concept.  Before committing to a mortgage broker, please make sure that they are licensed in Colorado by searching for them on the following link:  http://eservices.psiexams.com/crec/search.jsp ·       Licensing All mortgage brokers conducting bus... 12/09/2008

Loan Considerations for Buy and Hold Investors As far as investment loans, little or no money down loans are impossible.  However, lenders do permit the use of Home Equity Lines of Credit or second mortgages from other properties owned by the borrower as a source of down payment.  Or, self-employed borrowers are using funds from business lines of credit to fund down payments or renovations (please note: there are asset seasoning guidelines for doing so and the debt incurred by accessing other credit lines must be accounted for against the borrower’s debt-to-income ratio). Thus, we have clients leveraging themselves with other homes they own in order to get in with little or nothing down.  There are exceptions, but practically every lender requires Full Income Documentation on any invest... 12/09/2008

Loan Considerations for Fix & Flip / Short-Term Investors Securing conventional financing on a fix & flip or short-term loan is not recommended.  Most conventional lenders sell off their mortgages to investors on the secondary market.  If the loan is paid off early (before six payments are made), the investor has not recovered their initial investment.  The investor will attempt to recover their loss from the lender, who will ultimately come after the loan originator.  The loan originator would then be obligated to pay back any premium paid out by the lender.  If such activity becomes habitual with the loan officer, the lender can cease doing business with them and their firm.   Furthermore, conventional loans require conventional appraisals.  The lender will require that the home is a)... 12/09/2008

Loan Considerations for Jumbo Mortgages   For the Greater Metro Denver area, any loan amount greater than $417,000 is considered a jumbo loan.  Fannie Mae and Freddie Mac assign different thresholds for various regions across the country.  For instance, $417,000 is not considered a jumbo loan in a high cost city like San Francisco, yet there will still be higher rates for going above $417K.    Due to the size of jumbo loans, they are considered greater risk for lenders, resulting in higher rates.  Rates have fluctuated greatly over the past few years on jumbos.  As of today, a 30 year fixed could range from 7% - 8%; a full point higher than the prime rate below a loan amount of $417,000.  Five year ARMs are popular on jumbo loans, as they typically price out a half point lower than fixe... 12/09/2008

  Loan Considerations for Loan Amounts Between $200K - $417K   With all the doom and gloom publications that are mostly exaggerated, many potential borrowers believe that home mortgage lending options have dried up.  While underwriters and investors are scrutinizing files more closely, attractive rates and terms still exist for owner occupied purchasers seeking a conforming loan limit (under $417,000).  FHA and VA can still lend up to 100% LTV and conventional permits up to 97% LTV.  There are certain guidelines to meet when going to these high LTVs, but they are not impossible to surmount.   Every home buyer should first ask themselves what payment they feel comfortable in committing to on a monthly basis.  Too many buyers over-extended themselves in recent years o... 12/09/2008

FHA First-Time Buyer Tax Credit   In an effort to boost the sagging real estate market and overall economy, first-time home buyers are being offered a limited time tax credit when purchasing a primary residence.  The highlights of the tax credit are: ·  The tax credit is available for first-time home buyers only. ·  The maximum credit amount is $7,500. ·  The credit is available for homes purchased on or after April 9, 2008 and before July 1, 2009. ·  Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. ·  The tax credit works like an interest-free loan and must be repaid over a 15-year period.   Due to the volume of questions that can be generated with the above, I would recommend clicking on the below link for ans... 12/09/2008

Loan considerations for a first time buyer   Lending guidelines are changing on a daily basis for every type of loan: conventional, FHA, VA & commercial.  Nevertheless, there are still very attractive first-time home buyer options available.   If you are or will be a first-time buyer, it is critical to speak with a loan officer before looking at homes.  It is a crushing feeling to view a home, picture making it your own and then find out that you cannot qualify to purchase it.  A loan officer will pull credit, analyze debt-to-income ratios, review assets and income and determine what you can afford.    Presuming a pre-qualification occurs, the loan officer will then be able to provide an array of loan options.  Presently, FHA loans are the predominant loan for first-time home buyers as ... 12/09/2008

How can you improve your FICO score? To improve one’s credit score, it’s critical to understand the factors influencing a credit score.  The factors that contribute to a FICO score and the weighted percentages for each are as follows: 35% — timeliness of payments 30% — the ratio of used debt to allowable debt for consumer credit 15% — length of credit history (the more credit history and showing proof of consistent timely payment, the better the score) 10% — types of credit used  10% — recent credit inquiries and recent new credit The greatest driver behind a score is making timely payments on all accounts.  Scores will be adversely affected for any payment that is 30 days late or more.  Being late on a mortgage payment will not only crush one’s score, but will also make qualifying for ... 12/09/2008

How does your FICO score impact your interest rate on your loan?   Low credit scores are deemed greater risk for lenders since the likelihood for defaulting on the loan increases.  As such, lower FICO scores translate into higher interest rates.  Mortgage lenders will group credit scores in a range, usually in 20 or 40 point increments, with interest rates progressively getting better for each higher interval.  For example, a borrower with a middle credit score between 660 – 680 will have a higher interest rate (presuming all other variables being equal) compared to one with a 680 – 700 score.  Typically, when a borrower has a 750+ credit, they will be able to secure the best possible rate, assuming their income, assets, collateral and down payment are acceptable.   For qualifying, unde... 12/09/2008

  What is a FICO score? FICO stands for Fair Isaac Corporation, a company that created the most used credit scoring model in the United States.  An individual’s credit score is calculated through a statistical algorithm and is used as a factor in determining the likelihood of a borrower defaulting on a loan.  FICO scores are generally used for obtaining mortgages, car loans or consumer credit.  The scores are provided from the three major credit reporting agencies: Equifax, Experian and Transunion.  Typically, there is a variance amongst the scores since each agency has a slightly different scoring formula.  FICO scores range from 300 – 850, with higher scores being considered less risky.  For mortgage lending purposes, any score over a 680 is considered good and above a 750 is consider... 12/09/2008

Again, IF NOT NOW WHEN! You have decided that the 10,000+ square foot lot is too much work. Maintaining a Four thousand square foot home is more that you want to deal with. The kids have gone off to college and it's time to transition to a new start. The bills for heating and cooling such a large space are out of control. These are only a few of the comment I have heard from buyers and sellers as reasons they say "It's time to downsize! Again with interest rates near historic lows, your current home represents a greater value to current buyers.  In the Fort Collins and Northern Colorado real estate market there are several quality properties that will fit your new change in lifestyle.  Whether you are looking at buying new construction or in an established community, you can find a home... 12/08/2008

Again, IF NOT NOW WHEN! What are some of the reasons folks would need more space.  A lot of times we call this UPSIZING Starting a Family  It may be time that a baby is on the way or soon to be on the way.  It's time for another child.  Whatever the reason, your old home, condo or townhome is just not going to cut it.  Now is a great time to transition from your home that is too small, into your next home that gives you room to grow. Teens? Your kids are fast approaching the teens and your thinking Bathrooms, Their private space, YOUR private space.   You want a larger space. Families coming together and blending.  Again you need more space.   How is it that now is the time?  As we discussed in my last post, Rates are quite low!  As new first time buyers come into the market the demand ... 12/07/2008

I think a better question is "If not now, when?" Now Is the time.  Why now if you are a first-time buyer? Intrest rates are at very low levels.  Last week saw rates dip to 5%!  What that means is that with a loan balance of $150,000.00, at 5% interest The PI payment would be $806 per month*  But at 6% the PI due would be $900 per month*.  Check the Mortgage Calculator for yourself. *  Please note this would not include the taxes and insurance.   It would not be uncommon at that value to be +/- $150 a month First time Buyer programs are very favorable right now.  In Northern Colorado there are many down payment assistance options.  The City of Fort Collins, Larimer County and the State of Coloradoeach have separate options to aid in down payment assistance for first time home buyers. Ano... 12/06/2008

I think a better question is "If not now, when?" What are the questions you ask when you think about buying a home?  Whether it is for the first time or transitioning to your next home or looking for a sound long-term investment? This started out as one long article, interwoven topic to topic and I think it would have become grossly confused whereas the one of the main goals is to simplify the information.  In the next several articles We will explore the Upside of various facets of Real Estate investment.  Having said all that, the overall ideas and information will generally be valid in any market.  I will the Fort Collins Real Estate Market and the more widely the Northern Colorado Real Estate Markets to use as examples for our discussion. Now IS the Time. 12/06/2008

A little while ago, before AR I wrote a little blog on Investment Properties in Fort Collins.  Currently we do not have an abundant inventory, but there are some good opportunities out there.  For example, there is a fine home one block south of Colorado State University.  4 bed 2 bath Listed at $220,000 it is a great candidate for a quality investment property.  Plenty of parents would like to have the chance to start there students on the road to growing assets and future financial stability.  Please contact us, we will help you in your search for investment property in Fort Collins and Northern Colorado .    12/01/2008

Working with first time buyers is a passion of mine.  The challenge is getting the first time buyers to talk with you.  Once I do get a chance to talk with them I believe the education is the most important thing I can offer at the beginning.  Most folks just don't know what they are doing. I feel my first step is to educate.  I like to sit down and talk about The steps in the home buying process. I start with have they looked into financing.  depending of the answer we talk about current first time buyer options.  I always have them contact a lender to explore what they can borrow, as well as what they want to afford.  We then talk about what they want, home style.  their lifestyle, work, other factors of their current situation.  I ask about long term goals.  I talk with them about wh... 11/30/2008

Another cool tool to put in your listing presentation or comps for your buyers, is the result of a walkscore. go to www.walkscore.com and type in the address and it will rank the property on its location to other amenities.  You can even ad amenities if it is missing some.  This can really drive home the real estate moto, location, location, location.  I got a 60 out of 100 on my house and a 71 on my office (very walkable) Enjoy 11/20/2008

Fort Collins did it again!  The Choice City has been named the BEST PLACE TO RAISE KIDS IN COLORADO by Business Week Magazine!  The world is taking notice of what we have known for years, that we live, work, raise our kids and retire in the Best City in Colorado!  Check out the article Fort Collins picked as best Colorado city to raise kids by Business Week SEARCH THE MLS LIKE THE EXPERTS DO! SAVE YOUR FAVORITES!The best, no hassle, easy way to SEARCH        for homes in Northern Colorado! Click on the mapDON'T FORGET TO SAVE YOUR SEARCH! 11/18/2008