Archive for April, 2010

What’s Your Credo?

April 26, 2010

“The only way that I’ll become wealthy… is by making others rich.”

That’s my Credo, my statement of belief. Your credo (which is Latin for “I Believe”) defines how you act and react every day. I’ve been living my credo for the past three years.

In business, the credo is better known as the Mission Statement. In fact, this is one of the most important factors in the success of any company, especially a new company.

It starts with what you believe your company can do better than the competition. Many entrepreneurs skip this step, mistakenly thinking the “credo” is so self-evident (TRUISM) that it is not needed. Wrong. The belief system is vital to the success of everything that follows.

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Tax Credits Expire on April 30 (No Extension)

April 19, 2010

Many will miss the Federal Tax Credits because they believe they will be extended again!

As of today Congress has made no mention of proposing another extension of these homebuyer tax credits. In fact, many decision makers in Washington believe that the tax credits have been available long enough to produce the maximum results possible. They also feel it’s time to redirect these tax dollars toward other programs that could stimulate the economy and help with unemployment. Many of the current tax credit bills involve offering tax incentive dollars for the creation of new jobs.

The Homebuyer’s Tax Credits are due to expire on April 30, 2010.  If you haves friends, family members, neighbors or colleagues who are not aware of these tax credits, this could be their last chance to take advantage of this unique opportunity.

Yes there is still time to get a home under contract by the April 30, 2010 deadline and then close on it by June 30, 2010.

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“Chutes and Ladders” with Mortgages

April 12, 2010

Wow!  New Good Faith Estimate(GFE) rules from HUD, new HUD-1 Settlement Statements for use with the new GFE’s, new appraisal rules for Conventional loans, new HERA (Housing and Economic Recovery Act) rules affecting most loans and designed to give consumers time to rethink mortgage scenarios…..it’s mind boggling. 

OK, so the lender can’t order my appraisal (or collect the money to pay for it) until four business days after I apply for the loan, but they MUST issue me a binding GFE within three business days of my application….I get that. 

But what if something changes along the way? What if I decide to add some upgrades to my house and the price increases? Or I decide to try for a 15-year loan instead of a 30-year loan? Or what if we can’t close within my loan lock-in period and interest rates change? What if I win the lottery and decide to make a larger down payment? 

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Do You Have a “CLUE” When Buying a Home?

April 5, 2010

Comprehensive Loss Underwriting ExperienceAre you in the process of buying a home? If you wait until the last minute before closing to obtain a property insurance policy, you might not arrive at the closing table with a policy in hand. Many times it’s because you don’t have a CLUE (Comprehensive Loss Underwriting Experience)! While property insurance is often put on the back burner, it’s actually one of the very first items you should address, especially in today’s market.

Insurance companies require a CLUE report to be obtained on both the person trying to obtain insurance (the buyer) and the property to be insured (the asset). When a person files a claim on an insurance policy, that record is submitted to CLUE, and is usually on record a minimum of 5 years. This report is one of the tools used by insurance companies to determine whether or not they want to write a policy on a risk. The risk includes both the individual and the property being purchased. The number and type of claim(s) within the 5 year period greatly affects the number of insurance companies willing to assume the risk as well as the price of the policy.

The types of losses or prior claims that cause insurance companies concern on the property being purchased are:

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