Real Estate Information Archive

In the days where 100% financing is virtually gone few know about USDA Mortgages, their qualifiction guidelines and where they are applicable.  Set up to provide loans for residences for individuals with low income in rural areas this program can be helpful to your purchase plan when looking for the funds for down payment on a home are scarce.  Some residential areas in St. Charles qualify as a USDA area.  If you are curious if you would qualify for a USDA Loan contact our Certified Mortgage Planner at Preferred Home Lending Chris Simms at 314-229-4242.  You can apply on-line at

http://csimms-ph-lendinglo.mortgagewebcenter.com/Default.asp?bhcp=1. 

For more information on where USDA Loans may apply contact us by e-mail mikeandpat@Trails2OpenSpaces.com or call 314-749-0921.

In the days where 100% financing is virtually gone few know about USDA Mortgages, their qualifiction guidelines and where they are applicable.  Set up to provide loans for residences for individuals with low income in rural areas this program can be helpful to your purchase plan when looking for the funds for down payment on a home are scarce.  Some residential areas in St. Charles qualify as a USDA area.  If you are curious if you would qualify for a USDA Loan contact our Certified Mortgage Planner at Preferred Home Lending Chris Simms at 314-229-4242.  You can apply on-line at

http://csimms-ph-lendinglo.mortgagewebcenter.com/Default.asp?bhcp=1. 

For more information on where USDA Loans may apply contact us by e-mail mikeandpat@Trails2OpenSpaces.com or call 314-749-0921.

Every now and then there is that house, the one that at Christmas just touches the hearts of a lot of people.  This is one of those houses and we wanted to feature it because when the winter winds blow away and jack frost has gone to sleep there are many more things to do here in this great community known as one of the best 10 places to live: 

You'll be home for Christmas . . .

Santa will love this entry . . . . .

Watch the fire and the lake . . . . .

All wrapped up for her for Christmas . . . . . . . . .

Call 314-749-0921 for a personal tour.

http://money.cnn.com/magazines/moneymag/bplive/2009/snapshots/PL2940043.html

If you would like to reach Chris is number is 314-229-4242 or e-mail csimms@psphomes.com.  Call or e-mail us to assist in searching for a home at 314-749-9862 or 314-749-0921.  We look forward to hearing from you.

When comparing the homes on the market in July 2008 to the homes on the market in July 2009 there were 18% less homes on the market this year than last year.  This is means more buyers are competing for the same homes.  Feeling the noose tightening even more are First Time Home Buyers who are often looking for nice homes in lower price brackets.  Last week we ran a search of homes $100,000 to $135,000 3 bedroom 1.5 bath and found that there were 94 listings.  This week that number had dwindled to 78 for the same search.  If you are planning to use the $8,000 Tax Credit you want to be looking now and if you find the right home don't wait too long to make an offer, it could be gone.  How do you begin looking?  Register on Total Access by clicking on "Search Listings" on our Trails2OpenSpaces.com website. You may also register what you are looking for at www.St.CharlesHomeHunter.com.  We will set up a search to e-mail you when new properties come available on the market.  You can also see all of the current homes on the market.   Can't find what you are looking for?  E-mail us at MikeandPat@Trails2OpenSpaces.com and we will search for you.

Condominiums have recently taken quite a hit with the housing decline.  As a result it has been harder and harder to secure a loan on a condominium through a lender.  In response to the increased number of condominiums going to short-sale or foreclosure, investors who purchase the loans from lenders are again responding with MORE RULES.  These rules go into effect October 1, 2009 and may affect your ability to obtain a loan depending on the complex you plan to purchase your condo from.  These new rules include:

• If 15% of the Condominium's Association's dues are in areers - there will be no loan.
• If there is pending litigation in the complex - no loan
• If the lender is unable to purchase Mortgage Insurance - No loan
• 50% of the complex must be occupied with owners not rentals
• Conventional loan requirements will be 10% downpayment up 5%.
• FHA is no longer requiring the condominimum to be approved, however, individual investors will be permitted to make up their own guidelines.
• Resale certificates and Condominium Questionnaires will be required

If you are contemplating the purchase of a condominium you will want to be sure your realtor and your mortgage person are in tune with these new requirements and understand the impact on your purchase.  For more information give us a call at 314-749-0921 or contact our Team partner Chris Simms, Certified Mortgage Planner at Pulaski Bank, 314-229-4242 or csimms@pulaskibankstl.com.

The Simms Team

Time is running out on the First Time Home Buyer $8,000 Tax credit.  If you haven't had an opportunity to find out about this program to help you buy your first home you need to contact a Mortgage person today.  The progam ends November 30, 2008 and all homes must be closed by  that date.  However, some buyers have not taken into consideration that  November 30 is the day after Thanksgiving and most Title companies will be closed.  When planning your purchase be sure to plan to close well before Thanksgiving to avoid the rush and ensure your home will close on time.  Don't forget that closings are further complicated by the new HERA rules which require re-disclosure  and an additional 3 - 7 days on disclosure before properties may close depending on the situation.  For more information and clarifcation on these rules contact your Mortage person or call:

Chris Simms - Certified Mortgage Planner

Preferred Home Lending

Powered by Pulaski Banks

314-229-4242 or 314-579-7762

You  don't want to miss out on  this program that may help you  purchasee your next home.  To search for homes register at www.StCharlesHomeHunter.com with the details of our search and we will set up a hunt for your new home in the greater St. Louis area.

Call Mike - 314-849-0921 direct or Pat 314-749-986 direct or email to MikeandPat@Trails2OpenSpaces.com  We look forward to hearing from you.

There is a lot of buz going on regarding a possible increase to the Tax Credit.  We asked Christ Simms, Certified Mortgage Planner with Pulaski Bank what he knows -

We talked with team member and Certified Mortgage Planner Chris Simms on where rates are and how buyers are being affected.  With such low rates he is extremely busy refinancing clients but he took a minute to tell us this:

According averages 5ates are sitting at 5% - 5.125% for a 30 day lock on a 30 year fixed.  Assuming excellent credit and low loan to value.  Rates are still at 4.875% and 4.7% for 15 years but we are seeing huge differences on credit scores and loan to values.  For example one client may have a $240K loan on $315K purchase with a great credit score and his rate is at 4.875%.  Where as another individual on a loan of $250K on a purchase of $500 is at 4.75%.  The break appears to be at 200k loan amounts with 60% or less loan to value. 

Market wise the Fed finished up its regular two day meeting determining to keep interest rates low.  They plan to continue investing in Mortgage Backed Securities (MBS) and to invest in 10 year Treasuries (10 year notes, 2 year notes etc.).  This is good news.  This means they are going to do whatever it takes to keep rates down.  If jobs get in order we will have a great housing market.

Purchases are picking up.  Let your friends and family know how cheap rates are.  It's a great time to consider buying. 

If  you have questions for Chris he can be reached at 314-229-4242 or via e-mail at csimms@pulaskibankstl.com

Each year our Mortgage Partner and Certified Mortgage Planner with Pulaski Bank of St. Louis, Chris Simms, provides his predictions for us agents.  We just happen to be Mom and Dad so we can sit on him a bit if they waiver too much but we figured you would appreciate some of his thoughts in his Crystal Ball for 2009.

Chris wrote:

I hope you all had great Christmas and a Happpy New Year!

Ok, it's that time again for my annual Crystal Ball.  It's long and it's lengthy but its all good so please read up.

Last Year - I didn't do too bad - Ok, I missed rates not getting back to 5.25% in February after the little hit in January but they did get there by the end of November.  The realestate market slowed as we expected and lending got even tighter and harder to place loans.  Self employed and stated income loans are non existent.  If you can't prove you make money then you can't get a loan and in some cases even if you can prove you make money then you can't get a loan.  Lending has gone back to good jobs, ood income, good debt management, grat credit, and you need a down payment.  In all honesty it needed to get back to the basics.  So what lies ahead?

$ Rates - I could go on for days about this but I'm going to try to keep it short  Here is what has happened and what lies ahead.  In november the Fed confirmed that it was going to begin buying Mortgage backed securities 9MBS).  It didn't appear likely util Dec 17 (dooms day for mortgage professionals) when they again confirmed but could not give a time ine but just said "soon".  That drove rates fom 5.5% to 4.75% in a matter of seconds and then the mortgage back security market saidwai a minute they just said "Soon" not tomorrow.  Lock deks around the country froze up and investors stopped buying paper that day.  Since then investorsfizzles, took some profits and ratesjumped back up to 5.25%.  Then today the Fed actually began buying MBSs.  How much, we won't know until Thursday.  The Fed has appointed 6 ifferent companies to manage the purchase of MBS over the next 6 months.  They have 500 billlion at their disosal to do so.  So how is this going to work you ask?  The Fed is going to sloly purchase MBS, hoping investor sentiment will follow suit.  Investors will hopefully buy knowing that the fed is going to buy and driv bond prices on MBS higher (rates lower, inverse relationship).  The Fed is hopig that just a little at the begining will be enough to allow the market to do the rest.  The gol rates between 4.5% to 4%.  There is talk of less than 4% but that is pretty pricy and investors would be paying quite the premium for that price.  The Fed then hopes they can play a larger part of trying to protect th prices by buying when investors are trying to sell.  This will help provide some price stability and keep rates more constant and ot as volatile.  Will that happen, your guss is as good as mine.  Several factors will have to occur for that to happen.   1) economy needs to continue to weaken.  Jobsneed to continue to get worse and stocks need to be a bad bet.  2.)  Mortgage investors need to feel confident that they are goig to get their profits out of this  dal.  3.) the Fed has to control inflation.  As the market continues to weaken and the Fed continues to print money at its own discretion there is a huge potential for inflation.  Note:  Study the Japanese market for the past 15 years.  If inflation begins to be a big worry because the fed has printed to mucvh money and the money isnt worth as mucvh as it was supposed o be, then investors will dup out of bonds and it won't matter how much the fed has because the money won't be worth anything.  (see the dilemma).  We do expect themarket to continue to weaen and jobless claims to continue to rise.  That will hurt the economy but the infrastructure plans that Obamahas proposed is a good idea.  If you create jobs and industry, then people will have money to buy things.  So his plan does make sense and will help the economy if inflation remains under control.  Again if it doesn't then it doesn't matter that you have a job paying $20 an hour because $20 wonn't buy anything.  Stock market rise is possible by year end but not huge and will remain volatile through the second and possibly third quarters.  Following that there could be a good rise for the US economyto see stronger signs sooner.  Several factors will play into that including lower mortgage rates.  Rates will get lower.  I am predicting 4's.  There is a possibility ofhigh 3's but not hugely llikely and probably not for a period of time, but with the volatility we have had and the way this market has been for the past 16 months, I wouldn't put it past the market to try.  So what should you do as far as refinancing?  First, if you just refinanced are are below 5.5, hold off.  Let the market show some benefits before you go to jump iin again.  If you haven't yeet then I would recommend looking to take a 30 year at 4.75% and a 15 at 4.5%.  That should be possible in the next few weeks with the way today occurred.  If rates do go considerably lower then it won't be until the middle to the end of the cycle (May or Jun) by all indications.  By that time you could refinance again if it would make ense paymet wise.  As for covering closing costs, investorshave not been paying a premium for rates.  They are selling at the bare minimum the market will sustain because they are fearful of rates going lower and you refinaning again meaning they loose their money they were epecting to get over 30 years.  If you refinance in 3 months.  That's why we tell you, you an't refinance until 90 - 120 days has passed since your first payment.  They will keep ou from getting lower rates if theycan't make any money (even if the bond market is lower, its about profit).  So being able to cover closing costs has been extremely hard being we aren't getting any to do so with.  So if you haven't refinanced and would like to gurantee 4.75%  give mea call.  If you want to gamble ok.  If you have just refinanced, it is worth the gamble if youa re below 5.5.

Real Estate -  With rates going down we will see some activity  In all honesty with rates where they are, the tax credits, and prices where they are we will actually see a lot of activity.  Will we get to numbers like in 2004 and 2005?  Probably not just because the loans are harder to get and jobs could be an issue.  But those that will qualify will be looking to move.  This will probably be the year of all years to get the real estate deal of a lifetime!  As for selling, with the increased activity and curiosity it will be good for listings.  The difficult part will be the buyers trying to push for the deal of a lifetime.  Remember 98% of the population buys on emotion.  That means if they will probably buy because the paymets will make sense.  This should cause a good pop in values.  Not huge, just good.  With gas being down you could see Warrento, Lincoln, Franklin, and Jefferson counties pick up as well.  i wouldn't hold on to that though.  We do expect gas prices to steadily go back up.  (they have to in order for the oil companies to continue getting richer.  They like that and we can't do anything about it because we won't drill in the ANMAR province or off shore).  Needless to say oil prices towards the summer could begin to get back into the high 2's low 3's.  This will also allow for harder drilling and exploration to be worth while.  Now is the time to buy. Agents I don't plan on sleeping this year, neither should you. 

Everyone have a great year and God Bless

If you would like to contact Chris regarding your mortgage planning he can be reached at 314-2294242 or by e-mail at csimms@pulaskibankstl.com.  For information on selling a home call us at 314-749-0921 or register at www.StCharlesMarketValues.com for an analysis of the value of your home.  Your home does not need to be located in St. Charles just the St. Louis Metropolitan area.  If you are looking for a home you may register a search here on our Trails2OpenSpaces.com website by clicking on New Listing Alerts and completing your registration.