We.ve seen a solid increase in St. Louis real estate sales this year.   Lawrence Yun, chief economist of the National Association of Realtors is predicting a 20% increase in home sales for the first half of 2010.  We can count on 2.6 million home purhcasers taking advantage of the credit.  Yun admits that his prediction is assuming that we will continue to see historically low interest rates of around 5.0 to 5.5% — for today’s rates contact my mortgage partner Matt Eversgerd of Stifel Bank at 314-620-7227.

Currently, the Fed plans to end its purchase of Mortgage Backed Securities.  We will see rates rise on this action.  But we shouldn’t see rates go through the roof — they will likely land in the high 5s.  The rate change from today’s 4.875 for 30 year fixed rate money to the likely 5.875% we will see in 2010, means that every $100,000 that you borrow will cost you an additional $60 per month.

For example, a $250,000 loan today has a principal and interest payment of $1324. If rates increase a full percentage point, as expected by mid-2010, that same loan amount will cost you $1480.

I’m optimistic about 2010.  Throughout this past year the St. Louis real estate market has had it’s ups and downs, but my sense is that our outlook is better than it was a year ago.

One of the reasons for my optimism…. During 2008 and 2009, while the overall St. Louis transaction volume sank by 30%, mine went up.  I’ve sold 80 homes during the 08/09 decline.  So, Nolting Real Estate is doing something right for St. Louis real estate buyers and sellers.  Check us out.

The Stewarts -- First Time Homebuyers, no credit

Here’s a problem that you don’t think about very often…  Boy meets girl.  Boy and girl fall in love.  Boy and girl find a nice apartment together and pay all of their bills on time.  Happy couple opens no credit cards and pays cash for cars because girl’s Dad told them the horrors of consumer debt.  Happy couple decides it’s time to buy a house.  Sad couple is declined for loan because they have no credit.

No credit is just as bad as bad credit!

So what do you do if you find yourself in this unfortunate predicament?

First step is to open a credit card and buy your gas and groceries on it.  Pay it in full every month.  Maybe get a card with an airlines frequent flier reward program — that way you can rack up a few miles while you use the card.  By doing this, you will begin to build credit — good credit!

Second, you make sure that your Realtor has provided you with a great referral to a competent lender who can help you deal with this strange situation.  I use Matt Eversgerd at First Integrity Mortgage Services.   Matt and I are working a transaction right now with the Stewarts — they want to buy a home in Webster Groves.  We found them a cute house in Tuxedo Park– $199,000.  Upon pulling credit, this young couple has no scores.  Matt is in the process of building a credit score for them.  Because First Integrity Mortgage Services has in-house underwriters, they are able to put together a decision quickly.  If your lender’s underwriting team is located off-site (which is how 95% of mortgage brokers operate), files have to be mailed back and forth for approvals.  Matt will be able to get the Stewarts approved for this house.  He has never failed me.  

Third, you need to have a Realtor who has dealt with these types of problems before.  Not all Realtors are good — in fact, the typical Realtor only sells 2 or 3 houses a year.  They cannot possibly have the experience necessary to deal with problems that pop up — and problems often pop up!

My team of Realtors has decades of experience, we sell a ton of houses, we’re ranked in the top 1% of Realtors in St. Louis.  Call me.  314 267 2636

1. Short sales are impossible and never get approved. It is true that short sales are more difficult but they are not impossible. A Certified Distressed Property Expert has extensive training to help homeowners in distress.
2. Banks Don’t Accept Short Sales. In reality, banks are doing whatever they can to avoid a foreclosure.
3. You must be behind on your mortgage to negotiate a short sale. Many lenders today focus on verifiable hardship, monthly cash flow shortfall and insolvency - not just people in default.
4. Buyers Avoid Short Sales. Many agents report that buyers call them looking for short sales. Short sales are becoming synonymous with a “good deal”, specifically with international buyers.
5. Listing your home as a short sale is embarrassing. Recent estimates state that 1 out of 5 homeowners in the U.S. is in this situation. You are not alone!
6. Banks prefer to foreclose. Banks do NOT want to foreclose. Banks, investors and the federal government have all publicly stated that if a person qualifies for a short sale, then the deal needs to be considered.
7. There is not enough time to negotiate a short sale before my foreclosure. Many lenders today will stall a foreclosure up to the final day of the process, with a legitimate contract.

Is an FHA loan just for a first-time homebuyer?  Absolutely not!!  

As I work with buyers, I’m surprised at how often they tell me that they think FHA loans are only for first-timers.  FHA is a great program for many different buyers:

• Is your credit less than perfect?  FHA is for you!
• Do you only have 3.5% to put down?  FHA is for you!
• Do you need to get the seller to pay your closing costs?  FHA is for you!
• Do you need to use a gift from a family member for your down payment?  FHA is for you!

Is your agent prepared to advise you about the current lending crisis? Has he told you that conventional loans can no longer exceed an 80% loan-to-value ratio on condos (you’ve got to come up with 20%!)? Does he know about the new appraisal guidelines? Does he understand what FHA loans can do for you in this market? 

A good Realtor works hand-in-hand with a good lender. I spend a great deal of time talking to my experienced lender so that I’m prepared to write realistic offers that can get approved by underwriters. 

It’s not hard to get a loan, but you’ve got to work with the right people. 

You need a Realtor with experience — call me today at 314.267.2636.  

I’ve got a couple new websites to tell you about. Want to search the St. Louis MLS without speaking to an agent? Go to http://www.SearchHomesStLouis.com. 

Interested in knowing the value of your St. Louis home in today’s market? Go to http://www.HomePricesStLouis.com. 

At Nolting Real Estate we’re keeping up with the latest technology to better serve our clients. 

–Russell 314.267.2636

I’m not a huge fan of Zillow.com. I feel that the Zestimate’s from Zillow are so often out of line.  I do, however, use Zillow.com to analyze trends.  I find that Zillow’s analysis of increase/decrease in value is usually well done.  The limitation of Zillow, of course, is that it doesn’t have the ability to see the condition of the property.  It can give a range of values — targeting the center of the range as the Zestimate.  But it is unable to determine whether the property has updates and/or luxury appointments.  

Recently, RisMedia wrote an article about how Zillow has noted record-breaking traffic and loan request activity on its site.  

Consumers are interested in refinancing their St. Louis homes.  And consumers are buying homes.  We’ve got tons of traffic on our listings.  For a great lender, please contact Matt Eversgerd at First Integrity Mortgage Services at 314-620-7227.

For more information about lending, please give me a call or visit my St. Louis Home Guide website.  

Russell
314-267-2636 

RISMEDIA, March 4, 2009-Amidst the announcement of President Barack Obama’s housing plan, and with mortgage rates reaching historic lows, real estate website Zillow.com reports record-breaking traffic and loan request activity within its free marketplace for custom mortgage quotes, Zillow(R) Mortgage Marketplace.

Over the past three months, as mortgage rates dropped to their lowest levels in years, consumer interest in refinancing soared. More than 70,000 loan requests were submitted from borrowers on Zillow Mortgage Marketplace in the December through February time period, with the average number of daily loan requests up 142% in this same period versus November 2008. Refinancing requests accounted for more than 60% of all consumer loan requests over this three-month period.

Meanwhile, increased consumer interest in refinancing and dropping home prices resulted in a series of record traffic months for Zillow.com. February traffic reached 7.9 million unique users, which is up 60% year-over-year.

“It’s been fascinating to watch homeowners and potential buyers respond so quickly to these record low mortgage rates and to the economic news of the day. We saw borrowers react quickly when rates dove below 5% in early February; loan requests rose 16% compared to the previous week,” said Lloyd Frink, Zillow president. “Likewise, when President Obama announced his refinancing plan in late February, loan requests rose 56% over the average daily rate and remained at higher levels for several days, even though there was no movement in rates. Clearly, homeowners, and those seeking mortgages, were interested in what this plan could mean for them.”

Zillow Mortgage Marketplace is the new business arm of Zillow that aims to transform the process of obtaining a mortgage and finding the best rates by adding transparency and competition to an area that hasn’t before existed. Borrowers can shop for loans anonymously and get an unlimited number of real customized rates directly from lenders within this open and free marketplace. On average, each consumer loan request receives 14 customized loan quotes from lenders, with the first quote coming within seconds.

Interactive mortgage rate charts show the most current mortgage rates being offered on Zillow Mortgage Marketplace, making it easy for borrowers to see when rates drop and get a sense of a rate they may be able to lock in.

• In this type of transaction there is an additional party involved besides the buyer and the seller; the bank. The bank must approve the sale, and this can make the time to close much longer than usual. Expect it to take anywhere from four to six weeks. And once the bank’s approval is granted, they will expect you to be ready to close as soon as possible.
• You will need to pay for your own inspection, and since the sale is “as-is”, this means that no repairs will be done and there will be no closing cost credits for repairs.  Our favorite St. Louis home inspectors
• You will also need to pay for your own appraisal. The bank will do their own as well, and have been known to reject the sale based on their appraisal. Also, they may ask the buyer to raise their offer before approving the sale.
• These things are obvious risks to the potential buyer, as you could end up out of your inspection costs.
• Deferred maintenance on the home is a potential risk for the buyer. Consider that since the mortgage payments were not being made, it’s highly likely that the homeowner was not able to afford regular home maintenance.

  The first step to consider is to call a professional.  Ryan Nolting, at Wells Fargo, may be your answer for a refinance of your St Louis home mortgage.  He will analyze your unique situation to determine if a refinance is a good idea.  Ryan can be reached at 314-267-4300.  

  Another concern homeowners have is in regards to the value of their home.  Do I have enough equity in a declining market to refinance?  If you'd like a free anaysis of your St. Louis home value, we can help -- just follow this link.

  If you have plans to pay off your mortgage in the next few years it makes no sense for you, as you will not be able to recover the re-financing fees in time. Same thing goes if you are planning to move in the next few years.

  If you are planning to stay in your home for many years and currently have an Adjustable Rate Mortgage, then refinancing to a 30-Year Fixed is a very good option for you. Refinancing may not lower your monthly payments by all that much, but you may sleep better knowing that those payments will never go up.

  Another good reason to refinance is if you are currently paying a very high rate. A very good rule of thumb is to calculate your costs and make sure that you can earn back the roughly $2,000 in fees that you will pay, within two to three years.

  Two other things to consider are that if you are paying less interest over time, you will pay more taxes. Also, money that you pay in refinancing fees could be invested instead. Think of the return on that sum you could earn over thirty years!

  Of course, I'm never too busy to talk to you about your real estate and refinancing needs, just call me at 314.267.2636   Russell

By: Matt Eversgerd of First Integrity Mortgage Services, St. Louis, 314-620-7227

Many people have been asking, “How did we get to this place in the housing market where it’s so hard to get a loan?” My response is simply, “It’s not near as hard as you think.”

There are four main components that go into a lending decision: credit, income, employment, and down payment. If you are in the majority that have managed your credit well, lived within your means, demonstrated an ability to save money, and have at least 5% to put down, you will get a great loan with no hassle.

So what if you have “challenging credit?” What if you have very little money to put down? I have good news…FHA (Federal Housing Administration) is here to save the day. With 3% down, and this can even be a gift from a family member, you can get a 30 year mortgage at a very low rate with which you can buy your St. Louis home. We will require you to have a job. We will require you to buy a home you can afford. We will demand that you have paid most of your creditors on time…sound fair?

The bottom line is this. There are homes to buy; there are loans available. Prices are lower than they were a few years ago and interest rates are still at historically low levels. It’s not hard to get a loan!

Are you prequalified to buy your St. Louis home?