JIM'S SOAP BOX
Real Estate Newsletter June 2009
Real Estate Newsletter June 2009
SUMMER IS HERE!!
I really thought we would all be cooked by early June, but the Phoenix weather has been outstanding. It must be the reason for the record number of sales in May. I will admit that I have been a housing optimist over the past couple years, and some accuse me of howling at the moon. However, in this edition of the soapbox, I actually have some statistics to maybe get excited about.
Also, I would like to welcome all of my Facebook contacts that I have recently included to the Soap Box mailing list. My thought is that if I can see what you've had for breakfast - you can read about my industry once a month. (facebook joke). Enjoy!!
The goal of my newsletter is to provide educational material mixed with Jim's unsolicited yet fascinating opinion on the Arizona housing market and real estate ownership in general. If you would like me to address a specific topic in the future, please email it to me and I will respond in the following newsletter.
How Did Wall Street Go Bust?
As a mortgage professional and educator, I have read countless pages on how the credit crisis evolved. Frankly, most of the things I read were position pieces that pointed the finger of blame at a specific industry or political party. Had I seen the following 10 minute video sooner, it would have saved weeks of reading.
So - if you don't have a full grasp on what happened to mortgage financing, and why Wall Street banks went bust - this is about the simplest explanation ever! ENJOY!!
What's Your Rate, Dude?
Here is a pet peeve of mine that I need to share with you in regards to interest rates. On occasion, I will have a potential client call me, and in their first breath of air, ask me what my rates are today. When I begin to explain that I need to know more about their situation before I can even begin to quote rates, they sometimes get a little frisky, and accuse me of not disclosing my rates upfront. Then the conversation spins into a dissartation by me on the dozens of factors that effect interest rates, and the potential client who now has tunnel vision on the rate I eventually quote him. This is not a desired scenario for a first contact with a new client.
These people are called rate shoppers and they usually make uninformed decisions on who their lender should be. Truth be told, there are dozens of factors that can effect your interest rate and they need to be explored before anyone can start quoting rates.
Look at the list below of 26 different criteria that affect your mortgage rate. How can anyone quote you an interest rate you can trust without a thorough knowledge of your unique financial situation?
1. Loan Amount 2. LTV 3. CLTV 4. Credit Score 5. Credit History 6. Escrow Preference 7. Closing Date 8. Loan Type 9. Property Type 10. Occupancy Type 11. Residency 12. Available Assets 13. Asset Seasoning 14. Co-borrowers 15. Debt Ratio 16. Housing Ratio 17. Improvements Needed 18. Employment Type 19. Employment History 20. Documentation Type 21. Paying Points 22. Length of Loan 23. Relocation 24. Seller Contributions 25. Gifts 26. Cash-out
My friends, please beware of anyone who quotes you an interest rate over the phone or the Internet without asking anything about you, your family, your finances or your lifestyle.
May Residential Sales - Highest Number Since August 2005!
May residential sales for Greater Phoenix were 9,290. The last time there were more residential sales was 45 months ago in August 2005 when sales were 10,031. I am pretty sure it was Mark Twain who said " there are lies..., there are damn lies..., & then there are statistics." As much as I agree with this philosophy, these numbers are pretty impressive. Even though 76% of the homes purchased in May 09 were either bank owned or short-sales, we are reducing our inventory at a record pace.
I really thought we would all be cooked by early June, but the Phoenix weather has been outstanding. It must be the reason for the record number of sales in May. I will admit that I have been a housing optimist over the past couple years, and some accuse me of howling at the moon. However, in this edition of the soapbox, I actually have some statistics to maybe get excited about.
Also, I would like to welcome all of my Facebook contacts that I have recently included to the Soap Box mailing list. My thought is that if I can see what you've had for breakfast - you can read about my industry once a month. (facebook joke). Enjoy!!
The goal of my newsletter is to provide educational material mixed with Jim's unsolicited yet fascinating opinion on the Arizona housing market and real estate ownership in general. If you would like me to address a specific topic in the future, please email it to me and I will respond in the following newsletter.
How Did Wall Street Go Bust?
As a mortgage professional and educator, I have read countless pages on how the credit crisis evolved. Frankly, most of the things I read were position pieces that pointed the finger of blame at a specific industry or political party. Had I seen the following 10 minute video sooner, it would have saved weeks of reading.
So - if you don't have a full grasp on what happened to mortgage financing, and why Wall Street banks went bust - this is about the simplest explanation ever! ENJOY!!
What's Your Rate, Dude?
Here is a pet peeve of mine that I need to share with you in regards to interest rates. On occasion, I will have a potential client call me, and in their first breath of air, ask me what my rates are today. When I begin to explain that I need to know more about their situation before I can even begin to quote rates, they sometimes get a little frisky, and accuse me of not disclosing my rates upfront. Then the conversation spins into a dissartation by me on the dozens of factors that effect interest rates, and the potential client who now has tunnel vision on the rate I eventually quote him. This is not a desired scenario for a first contact with a new client.
These people are called rate shoppers and they usually make uninformed decisions on who their lender should be. Truth be told, there are dozens of factors that can effect your interest rate and they need to be explored before anyone can start quoting rates.
Look at the list below of 26 different criteria that affect your mortgage rate. How can anyone quote you an interest rate you can trust without a thorough knowledge of your unique financial situation?
1. Loan Amount 2. LTV 3. CLTV 4. Credit Score 5. Credit History 6. Escrow Preference 7. Closing Date 8. Loan Type 9. Property Type 10. Occupancy Type 11. Residency 12. Available Assets 13. Asset Seasoning 14. Co-borrowers 15. Debt Ratio 16. Housing Ratio 17. Improvements Needed 18. Employment Type 19. Employment History 20. Documentation Type 21. Paying Points 22. Length of Loan 23. Relocation 24. Seller Contributions 25. Gifts 26. Cash-out
My friends, please beware of anyone who quotes you an interest rate over the phone or the Internet without asking anything about you, your family, your finances or your lifestyle.
May Residential Sales - Highest Number Since August 2005!
May residential sales for Greater Phoenix were 9,290. The last time there were more residential sales was 45 months ago in August 2005 when sales were 10,031. I am pretty sure it was Mark Twain who said " there are lies..., there are damn lies..., & then there are statistics." As much as I agree with this philosophy, these numbers are pretty impressive. Even though 76% of the homes purchased in May 09 were either bank owned or short-sales, we are reducing our inventory at a record pace.
Feel free to contact me by phone or email for any purchase, refinance, or general mortgage advice.
Jim Cunningham
Sr. Loan Officer
NOVA Home Loans
8800 E Raintree Dr. #180
Scottsdale, AZ 85260
480 614-6413 office
602 434-8261 cell
jim@novahomeloans.com
