Beware of internet lenders

I just closed a transaction for a buyer who had a major problem with his lender that I have also ran into in the past. When I first meet with a buyer, I provide them with a list of lenders that I have done business with in the past and have proven themselves to give good service and competitive interest rates and closing costs. It is a common mistake for home buyers to search the Internet for their loan source to purchase one of the most important investments they will make in their lives. This particular buyer found a lender who actually is a very recognized bank. I will call them BPA for the purposes of this blog. I actually recommend BPA to my buyer's through a local loan officer that I have experience with in Dallas. This buyer through the Internet ended up with a loan officer in South Carolina. During the processing of this loan he informed me that he had taken the loan application and would no longer be involved in the closing of the loan. He told me to deal with the loan processor from that point forward. We were under a deadline to close as is the case with most home sales since the principals have to make plans by taking off work, schedule movers, schedule utilities, and many times are purchasing a home after their sale. It is a very hectic time for all the parties. The loan processor took her vacation during the middle of this loan and it was turned over to another party to process. The other processor had her own clients to close so our deal was put on the back burner. The loan officer as promised was no help at all. We got to the closing date and the seller required that the buyer pay them $50.00 per day until it closed. The buyer agreed to this as he wanted the house and had spent over $750.00 prior to this in appraisal and inspection fees. Plus he had to move from where he was living. We ended up closing 13 days late which cost the buyer $650.00 extra. The processor a who was actually in a different state than the loan officer let us know through her actions that she frankly did not care about the buyer or seller's problems. By this time it is too late to change loan company's as it would delay the closing even further. We also found out the underwriter who would be approving the loan is on the West Coast which even further delayed the deal. AND the person who would approve the funding was on the East coast! This nightmare could have been avoided if the buyer would have used the person I recommended here in Dallas, who ironically was with the same company. She has a relationship with me and will take care of my customers as she knows she has to give good service to continue our relationship. The out of town BPA branch knew they would get no further business from either me or the borrower, so their priority was to take care of their local people. I get no monetary compensation from any mortgage company. I just get the satisfaction that my client's will be taken care of fairly and very rarely will there be a delay in closing, due to the lenders incompetence.

Millionaires and their homes

Millionaires live in the most expensive homes, right? You might be surprised. Certainly, many people with large incomes and high levels of accumulated wealth own pricey homes, but large numbers of wealthy individuals live in more modest dwellings. Here are some interesting numbers from Stop Acting Rich...And start living like a real Millionaire by Thomas J. Stanley, Ph.D.

403,211 1,138,070
Number of millionaires who Number of millionaires who live
live in homes valued at in homes valued at $300,000 or less.
$1 million or more.

90% 67,000
Percentage of millionaires Number of millionaires who
who live in homes valued live in mobile homes.
at $1 million or less.

41% 27%
Percentage of homes valued Percentage of homes valued
at $1 million or higher owned $1 million
by people with $200,000 or higher owned by millionaires.
or higher annual income.

$8,000 tax credit to be extended

Lawmakers in Washington agreed on Wednesday to extend the $8,000 tax credit due to expire at the end of November until March 30, 2010. In addition to that they are proposing a tax credit of $6,500 to repeat buyers who have been in their homes for at least 5 years. This will be an important step in continuing the gradual improvement of the real estate market.

If you are thinking of investing in a home in the White Rock Lake area of Dallas, call Mike Schmitt, "Your White Rock Lake Specialist" to find your dream home and make sure you receive this important tax credit. 214-676-4326 or toll free at 866-987-5253. Visit Mike's web site at www.whiterocklakeproperties.com

Upcoming real estate propositions for Nov 3rd ballot

This blog is specifically about propositions 2, 3, 5, & 11 regarding Texas real estate that will be coming up for a vote on November 3, 2009. It has been falsely claimed that proposition 2 will allow the state of Texas to levy property taxes on it's citizens. Proposition 2 is strictly a rule that will only allow the taxing entities to appraise your homestead property based upon it's current use. In other words if your property is located next to or close to a property that has commercial zoning, the tax appraiser could conclude that the highest and best use of your property would be commercial and appraise you as a commercial property conceivably raising your property value and thereby your taxes. If you own an investment property next to commercial zoning such as a rent house, you could still be appraised as a commercial property. This proposition only applies to your homestead.



Proposition 3 will insure that tax appraisal standards are applied uniformly throughout the state. Currently appraisal methods differ in appraisal districts and there is no over site of methodology or consistency.



Proposition 5 allows smaller adjoining appraisal districts in the state to pool their appraisal review boards together to make sure the smaller counties have enough qualified people to serve on the boards. The lack of qualified people to serve on boards for smaller districts is big problem at this time.



Proposition 11 puts more teeth in the Eminent domain laws that allow the state to condemn your property and buy it from you at "Fair market value" for public use. It should not allow private entities such as the Cowboys to have property condemned for economic development or enhancement of tax revenue purposes, and limits the legislature's authority to grant the power of eminent domain to an entity. Many comments have been made that this proposition does not go far enough to protect Texas property owners.

The National Association of Realtors testified before the U.S. Small business committee of congress on Wednesday that in order to sustain the current housing rebound it is absolutely critical for congress to extend the $8,000 first time home buyer credit through 2010. Before the credit was enacted there was 9.1 months of inventory of homes on the market. Since the credit has been offered there is now 8.2 months of inventory which is getting closer to the normal level of 6.2 months of housing inventory. NAR says that the purchase of one home pumps $67,000 into the economy through the various ancillary businesses that benefit from your home purchase. Call Mike Schmitt "Your White Rock Lake Specialist" to take advantage of the $8,000 credit and invest in your first home. 214-676-4326.

This is a shot of White Rock Lake. I live, play, and work in this neighborhood. It is a wonderful place to call home. Home prices run from $150,000 to $4,000,000. The average home price is $238,041. If you would like a great neighborhood to live in where your friends are your neighbors and your neighbors are your friends visit my web site at http://www.whiterocklakeproperties.com/ and then call me. No one will work harder to find you a home you will love. Over 78% of my business comes from repeat/referral customers.

A Home Buyer's Guide: 10 steps to a successful closing

As your Realtor, it is my job to assist you with your home purchase. If you hire me you will have the benefit of 28 years of experience helping over 1,000 people with the sale or purchase of their home. Many steps are involved in making your home purchasing experience successful and as stress free as possible. Here are recommendations and a brief chronology of the events as they "normally" occur.

1. It is to your benefit to make your loan application before house hunting. If you are approved on your mortgage this makes you essentially a cash buyer when you make your offer. This puts you at an advantage, especially when you may be competing with other buyers for the same house. It also eliminates any last minute problems that may occur because of erroneous information on your credit report. There are several mortgage lenders I recommend who have consistently provided excellent service and low interest rates to me over the years. I get no monetary compensation from them for my recommendation and will be happy to put you in touch with them.

For the other 9 steps to purchasing your home send me an email at michael.schmitt@sbcglobal.net and I will be glad to forward that to you.