2002 Toyota Tacoma Xtra Cab -- Selling My Truck!!

Slight Increase in Sales at the Years End......

There was a slight increase of new single dwelling home sales as the year came to an end in 2010 as reported by the Federal Reserve and Commerce Department. The month of November came in around 280,000 in sales and for the month of December sales increased to 329,000 in sales which is a 17.5% increase. Small but however significantly noticeable. Home prices suffered a decline in the month of November and the trend continued through the end of the year.  While home prices had begun to see an increase in the second half of 2009 and first half of 2010, the change in the direction of prices declining raise a bit of a worry for the seller's market in the months to come. Buyer's however have an added bargaining option due to the decline in pricing trends. New housing contruction fell to its lowest in December of 2010 but the commerce department has reported that there has been an increase in permits for new construction that exceeds the past 8 months and have been steady through the month of December into January which means we could see an increase in new housing availability for the start of the new year in the US Real Estate industry. With the many ups and downs in the Real Estate industry presently some indications suggest that lenders are looking at possibly making changes to the minimum score requirements to improve chances for consumers that are below credit scores of 640 on average. So, now is the time for buyers to begin working at ironing out what ever credit issues they may have as the new year appears to offer more of a buyer's market than that of a seller's market.  Seller's however, do need to concentrate on the best home presentation possible keeping in mind that any improvements to thier home should be measured carefully by the median sale prices in thier area to stay within the price ranges that are successfully being sold. Good luck both to seller's and buyer's this year!! Find your favorite Realtor and meet with your preferred lender to begin your planning.

Buyer's Inspection Seller's Rejection?? Louisiana Disclosure Laws.....

In Louisiana, when a residential sale occurs, the law requires the seller to disclose any defects of their property and where ever posible disclosure of maintenance practices that may be of value to the potential owner to be knowledgable of the property so they may successfully carry on where the seller leaves off in the care of the house they are considering for purchase. Often times a seller feels that this law is the death of the possibility of the sale of their home. Truth be told the law was inacted to protect consumers which includes both the seller & the buyer. 

Majority of the sales of real estate are sold "AS IS" in the state of Louisiana. Once the seller has provided to the best of their knowledge any and all information on the condition of the house they are selling they have fullfilled the requirement of the law required in most sales transactions. Be it something as simple as a $10 item in a department store to a car, or in this case a house, it is only fair the buyer should be afforded the right to be presented with what the product is and the quality thereof to make an educated decision on the value of spending thier money on the item being offered for purchase. Likewise the buyer also has the option to examine the product for themselves or with a family member or friends to get input if they feel they need to. Further, it is always a good idea for the buyer to obtain the services of a "Home Inspection Service" that is licensed & certified in the state of Louisiana. These professionals are trained to evaluate the condition of the property and give the buyer insight on the general condition of the home. Although seller's may see this evaluation as a bit of a threat to the sale of their home it truly is a valuable service that can protect both the seller and the buyer. The buyer for example is usually given a period of time to inspect or evaluate the property usually over a period of 10 days after the accepted purchase agreement. It is at this time the buyer can decide if they wish to continue with the purchase of the offer they have made. On the other hand this period once expired gives the seller the protection of the purchase offer being sealed and secures a sale that is locked in. Simply stated once the allotted time for inspection has expired both parties generally agree to finalizing the terms of the purchase agreement between the two parties.  It is not unusual, and is even encouraged that the seller prior to placing thier home on the market for sale have a "Home Inspection" done so that they can prepare the house for marketing by eliminating any items they may not have been aware of that could be issues, thus insuring a better chance of passing a buyer's inspection upon receiving an offer. So, whether you are buying or selling, talk to your Realtor about "Home Inspections" and direction on some of the local inspection services they may be familiar with to give you several suggestions to choose from!!

Mortgage Rates Show Very Little Changes this Week!

Mortgage rates showed little movement this week, with the benchmark conforming 30-year fixed mortgage rate nosing higher to 4.95 percent according to Bankrate.com's report for our nation.  This small increase may be an indication of what future month's may bring, namely increases in interest rates for home purchases.  Now however, is still a good time for buyers as there are great conditions from the buyer's market standpoint with seller's of residential properties continuosly reflecting lowered and reduced pricing in an attempt to get thier properties sold.  Although there was a small increase of sales in the residential sector this year many home owners seeking to sell are experiencing slow sales in moving thier properties.  Hence if you are looking to buy a home now may be a good time with frustrated seller's willing to negotiate on the selling price of most homes that have been sitting dormant on the market for several months in most cases.

Located at 4037 Ridgemont Dr. B.R. La. this house is an

example of a property that is priced well within the areas

median average pricing at $137,900 that has been completely

updated and has been on the market for several months!!

For more information on the property & the seller's

negotiation on selling price call 225-297-7689.

Are There Any More Lenders that Offer "No Downpayment Loans?"

One of the most common questions I have been asked by folks trying to qualify for a loan is, "What about 100% financing?? Does that option exist for Home Buyers anymore?"

Truth is, our lending trends have changed drastically since the economic difficulties over the past few years with many of the lending institutions. In most cases, the only option readily available is old fashioned conventional lending where a lender determines the amount of money they will lend you based on your credit worthyness in an amount referred to as "LTV" or Loan to Value. Basically a lender may approve you, for example, 95% LTV, which means they will give you 95% of the funds needed towards the value of the home you wish to buy and you will pay the residual percentage of 5% as your out of pocket down payment.  For example, if you want to buy a house that is selling for $100,000 the lender would pay $95,000 in the form of a mortgage note and you would have to come up with $5,000 towards the purchase as downpayment. Of course many people can't come up with both the down payment and thier closing cost thus the need for a 100% financed loan. 

At present in Louisiana there is an option that may provide the possibility of 100% financing or nearly that by way of the USDA Rural Development progam. However there are a few catches!  Below are a few of them explained:

Applicants for loans may have an income of up to 115% of the median income for the area. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. In addition, applicants must have reasonable credit histories. Next, you have to select a lender that is an approved lender by the USDA Rural Development program. If you wish to use the program you may ask your Realtor (if you are working with one) to help you with information on the local lenders and they should be able to help you locate one from being inoved in the Real Estate industry on a daily basis. Another catch is you can only buy houses in certain areas to use the lending assistance program. Again, if you are working with a Realtor they should be able to help you with learning of areas that qualify. (or go to the USDA Website to search the parish or county yourself) Loans are for a term of 30 years.  For an over view of all the requirements and general information on the "USDA Rural Development Program" you may click HERE to be taken to thier site.

5 Tips for Energy Efficiency At Home

Heat lost through windows

Check windows and doors.

and doors represents a significant chunk of most

heating bills. Some sources estimate that loss through

windows alone could account for up to 35 percent

of heating bills. If you are tired of watching your hard

earned money slip through the cracks, there are things

that you can do:

Check around windows and doors with a candle or a light

piece of thread on a windy day to determine where drafts are.

This will reveal problem areas in need of immediate attention.

Remove and replace damaged caulk and weather-stripping.

Self-stick foam and rolled rubber weather-stripping are

easy to install, and can contribute greatly to your home’s

efficiency.

An inexpensive method of weatherizing windows involves attaching

thin, clear plastic film to the window trim inside of the

house using two-sided tape. The film is then stretched taut

using heat from a blow dryer to remove wrinkles and creases.

Decorate your windows with efficiency — closed shutters,

window shades, blinds, curtains and lined draperies. All contribute

to energy savings by helping to insulate windows.

For a long-range solution, consider installing efficient replacement

windows, or storm windows and doors.

Conserve with ENERGY STAR.

STAR for every application in your home, you can save

up to 20 percent or about $400 per year on your energy

bills. Appliances account for about 20 percent of your

household’s energy consumption, with the refrigerator

and clothes dryer being the biggest culprits. A typical

household does nearly 400 loads of laundry per year,

using about 40 gallons of water per full load with a conventional

washer. An ENERGY STAR qualified clothes

washer uses 18-25 gallons per load, saving you 7,000

gallons of water! An ENERGY STAR refrigerator uses

less energy than a 75-watt bulb, saving you between

$30-$70 a year.

See the light.

most energy-efficient of all light bulbs. They use 67 percent

less energy than standard incandescent bulbs and

last longer: They cost more, but last up to sixteen times

longer than incandescent bulbs.

Programmable thermostats

by lowering energy use during those times when you do

not need it. A programmable thermostat can tell your

home’s heating system to gear up for your arrival after

work, or to knock off a bit until an hour or so before you

get up in the morning.

Turn down your water heater to 120° F

to 50 percent of a household’s hot water costs. Electric

heaters benefit most from this approach to saving energy.

Timers are also available which allow you to make the water

heater conform to your water usage schedule. They

prevent the water heater from trying to maintain hot water

during periods when it is never used.and save uphelp reduce energy costsCompact fluorescent bulbs (CFL) are the® By choosing ENERGY

Confused About Mortgage Approvals and what lenders require?

So you've decided to start planning to buy your first home but you have no clue as to what a lender will be looking at to decide whether or not to lend you money to buy a home. This is most certainly a common question with an answer that isn't so simple. However, to give you an idea here is what most lenders examine when processing a pre-approval for credit worthiness:

• Credit Scores
• Length of time on Job
• Debt Ratio
• Household income

These are the primary items examined but far from the only items examined. Further, each lending institution has varying additional items they consider. Of the things I have found that most buyers frequently don't understand is the meaning and calculation of what is know as Debt - Ratio. 

Basically, Debt Ratios are the relationship between ones income and ones expenses. Ratios are generally expressed as two numbers like 29 over 41 or 29/41. This is an example of FHA acceptable ratios. The first number, the 29, represent the relationship between the borrowers income and his new housing expense of principal, interest, taxes, insurance and homeowner dues. A borrower who makes $3,000 per month and has a housing expense of $870 would have a 29% top end ratio. The other number of 41% represents the total monthly debt, including the housing expense and all other debt such as credit cards, loans, child support, etc. Thus in the example of the borrower that makes $3,000 per month and had a total expense of $1,230, would have a 41% bottom ratio.

So when you meet with a mortgage lender and they mention thier debt / ratio expectations you will have an idea of what they are speaking about. Let's take it a little further!! Why not calculate your debt / ratio yourself so that you personally can more accurately estimate when you have reached the expected range for your debt/ratio. 

With most lenders thier guideline is that your total payment, including principal, interest, and escrow payments, should not be more than 28% of your gross (pre-tax) monthly salary. To calculate this for yourself, take your annual salary and multiply it by .28, then divide it by 12. This number is your maximum total mortgage payment per month. Banks also check how much of your gross income is required to pay all of your debts combined. This is called your back-end ratio and includes the mortgage as well as car payments, credit card payments, student loans, and child support and alimony payments. Their guideline for this ratio is that your total debt payments should not be more than 36% of your gross income. To calculate this for yourself, take your annual salary and multiply it by .36, then divide it by 12. This is the maximum allowable amount of your total monthly debt payments.

Go ahead try it out! Are you supprised at what your maximum mortgage note can be from the standpoint of your average lender's guidelines?? Now you have one of the key items examined by lenders understood so work at getting in the right "debt/ratio" range to be more appealing to potential lenders to extend credit to you!! Hopefully this information is helpful in your endeavors.