What’s The Real Estate Market Doing?

Do you ever wonder how our real estate market is here in Des Moines? Unfortunately, we spend a lot of time listening to how rough things are in other cities around the country, but too often we don’t really consider what our real estate climate is like.

I’m a fan of having as much information available before I take action on any big decisions. I don’t know about you, but I think buying or selling a home is a pretty big deal.

As a blogger and mortgage professional, when I receive good information - I pass it on. Home listings and sales are an interesting set of information most of us don’t have super easy access to. Thankfully, I have a Realtor that hammers me with e-mails (Just kidding, I don’t mind them) on market updates and her opinion on where things are at.

Why Should You Care?

Whether you’re looking to purchase, sell or refinance a home - this stuff matters. These statistics are compiled from the Multiple Listing Service and cover the Des Moines, Iowa residential real estate market.

With her permission, I post the facts here so you can come up with your very own market opinion. Here’s this week’s market commentary:

“Well it has been a very busy week and I thank all of you for your support in my move over to Remax Real Estate Concepts.  I will continue to provide everyone with my wonderful Des Moines Market Watch because I know how you all love it so much!

Last week we saw a HUGE amount of price reductions!! 393 which is the highest I have seen as long as I have been putting this report together.  I think that can be related to people getting really serious in selling their home before fall sets in and the real estate market slows even further.  If you are a buyer, now is the time to take action while rates are low, selection is high, and sellers are motivated!!”
- Heather Barglof, Remax Real Estate Concepts

(Click to Hugisize)

What Does This Report Cover?

I really enjoy this chart because it gives a breakdown of:

• Days on the Market
• Price Per Square Foot
• Number of New Listings
• Number of Expired Listings
• Number of Price Reductions
• Pending Home Sales (by price)
• New Home Sales (by price)
• All Active Home Sales (by price)
• Best of all, it compares this week vs. last week and last year!

This is a great chart.  I’m not a Realtor and would never try to take the place of one.  If you’re looking for statistics in your specific neighborhood (because your neighborhood is the only one that matters when you’re selling), I can help connect you with the right Realtor for the job!

We Love Great Information and Love to Give Great Information!

If you’re a super cool person and have any market statistics you think our readers would find valuable, please feel free to contact me. If it’s relevant, It’ll show up here!

If you’re looking for my professional opinion or looking for a comment (press related), please contact me here.

Is It Really Worth Your Time?

Let’s face it, short sales aren’t the easiest transactions to deal with.  Realtors often spend valuable time fumbling though paperwork and websites trying to find the right phone number to get in touch with a decision maker.  Then sorting through the necessary paperwork to put together a thick file basically dis-qualifying the client from the loan they were given.

Are You a Do-It-Yourselfer?

Dealing with loss mitigation representatives can be a daunting task.  Often times, representatives are sitting on 200 files and each file gets the same attention (very little).  You will spend a great amount of time leaving countless voice mails that you can never re-connect with (because you’re busy with other business).

Concentrate on What You Could Accomplish If You Were Working on NEW Business
You’re not a Realtor because you’re great at pushing paperwork.  You’re a Realtor because your a people person, someone that creates and fosters relationships.  Don’t put your valuable time to waste working on getting a response from a loss mitigation department.

Honestly speaking, there are a lot of Americans that have been left with no other option but a short sale.  The question is if you can put out your hand and help these folks and do it efficiently and successfully.  We’d like to be a part of your team in doing this.  You can consider us exactly that, a team member!

What Does It Cost?

Remember when I mentioned what your time is worth?… Specifically on an hourly basis?  We think you’ll find our services extremely fair at $450 per transaction we process.  This is a fee that is collected at closing.  If for some reason the deal doesn’t happen, we will have a wash agreement in place (unless it is taken advantage of, then we reserve the right to change that policy with individuals).  So, as long as the paperwork is filled out completely once it gets transferred to us, we’re in great shape!  We’ll get a check at closing just like you do!

How Do You Know What’s Going On?

Throughout the transaction, you’ll receive carbon copies of each e-mail sent to the lender so you are aware of the progress on your clients negotiation.  If you’ve ever worked with Four Legacies Mortgage on a home loan, you’ll see the same level of service you’ve come accustom to.

How Do You Get Started?

That’s a great question.  I’ve actually attached the forms that must be filled out and faxed in to us to initiate the process.  Talk about easy!

Here’s a short list of what we’ll need with the submission:

• Completed and Signed “Request and Consent to Provide Account Information to Authorized Party” form.
• Copy of Completed Listing Contract.
• MLS Information Sheet of Subject Property (with Days on Market Circled).
• Three Comparable Sales.
• Two Most Recent Years Tax Returns (W2’s if client is an employee, full return if self-employed).
• Two Months of Most Recent Bank Statements.
• Seller Hardship Letter (Signed and Dated!  See letters below for examples).
• Copy of Most Recent Mortgage Payment Coupon or Statement.
• Personal Financial Statement (detailing all monthly income/expenses).  Signed and included.
• Purchase Agreement (if finalized) - fully executed and buyers’ pre-approval letter.

If you have any questions, don’t hesitate to contact the Tyler Osby Team with questions!

Four Legacies Mortgage - Short Sale Registration (From the Tyler Osby Team!) - Get more Business Plans

What Happens After I Fax This In?

Our processor will get in touch with you and confirm that we’ve received your initial package.  If there are any missing documents, we’ll get everything else together.  From there we’ll start the loss mitigation process!  We’ll be carbon copying you on each e-mail to the lender.

It’s a Win-Win

Make it your goal to hold your hand out to the Americans that need your help right now.  You can confidently talk with them and help them sell their home.   It’s a win-win proposition for everyone.

1. Banks avoid a costly and nasty foreclosure process.
2. Homeowners avoid a foreclosure on their credit report and sell their home.
3. Realtors are capable of closing a short sale transaction and not dedicating their entire day to playing phone tag while still helping a client that is in need.

Go Help ‘Em!

Go back to those sellers you shyed away from when they talked about a short sale and get them listed!  Let’s get the process in action and see what we can do to make it a win-win for everyone!

Original Photo Kudos

Mortgage Market and Rate Watch For Week of July 21st, 2008

What To Watch This Week?

On first look, this week may seem like a slow news week.  Truth is, it will play a big part on if we’ll see mortgage rates reverse into a positive motion or if rates will continue to slowly trend upwards.

As always, if I were to pick two big reports or news stories to look at this week, these would be the two I’d pick:

1. Beige Book on Wednesday.  The Beige Book is a Fed survey that is also known as the Survey on Current Economic Conditions.  This report is only released 8 times per year by the Federal Reserve Bank.  This report is released two weeks before a Fed Open Market Committee (FOMC) Meeting.  This report is a combination of interviews with business contacts, economists and market experts.  Some consider this report a ‘lagging indicator’, meaning it’s not very accurate of showing current conditions.  This report is going to have a HIGH effect on the market because it will give traders an opportunity to look into the information the Fed will be using to make their next policy decision.
2. Consumer Sentiment Index on Friday.  This is much like the consumer confidence numbers.  If consumer spending is up, so is the CSI.

You Can Stay Updated!

I’ll be following things as they happen with live bond quotes and do what I can to keep everyone informed through Twitter. My clients always get the advice first, so I’ll try to filter though as quickly as I can.

Here’s this week’s economic calendar:

(Click to Hugisize)

As a Consumer, How Do You Keep Posted on the News?

I’ll do my best to keep you posted throughout the week via Twitter. If you’re interested in finding out more about what effects mortgage rates and which direction they’re headed, feel free to follow me!

Work With Mortgage Professionals In The Advice Business

It’s important to recognize that advice is extremely valuable when looking for a mortgage. The right advice can literally save you thousands of dollars, while the wrong advice can cost you the same.  Some mortgage professionals really don’t know what mortgage rates are based on, period.  If you want to get the best deal, having a professional that can give you that type of advice is extremely important.

Why Am I Posting A Calendar?

I provide this weekly news update because too often when we’re shopping around, we ask the wrong questions. The first thing you’ve got to have your antenna up on is economic news if you want to have any idea what direction rates are moving.

So You Say, What Are Mortgage Rates Currently?

I get this question all too often. If I’m being fair.. and honest (which is my policy). I would be doing you a huge disservice to just quote a rate.

Truth be told, there are literally 27 different factors that go into a custom rate quote. There are also thousands of programs (constantly changing as well). It’s extremely important that you are educated on what is available and most importantly what is the best mortgage plan for you to personally implement.

It’s natural to have a list of questions. I’d love to help work through them with you and educate you on what you need to know about the mortgage process. I can help with everything from how to pre-qualified to what to do after closing (where I will continue working for you)!

It’s what we do, and it would be my honor to add you to our list of raving fan clients. If you’re currently looking for a mortgage loan or know someone that might have questions about one, please have them contact me. I’d be happy to assist them. It’s literally what I love doing! I promise to take great care.

Original Photo Kudos.

Mortgage Rate and Market Recap for the Week of July 14th-20th, 2008

Riding Roller Coasters and Eating Corn Dogs

Have you ever been on a roller coaster and felt like the ’scary part’ had already passed and then next thing you know you’ve got three spirals that make you wish you wouldn’t have eaten that corn dog?  In a wierd way, that was last week in the mortgage market.

The Good Start To The Week

As I’m sure you haven’t forgotten, on Sunday (last Sunday) the Fed announced they were going to allow Fannie and Freddie to go to the Fed’s Discount Window.  What this meant was that the fear of liquidity (hopefully) wasn’t a fear anymore.  Mortgage backed securities (the ONLY thing mortgage rates are based on) loved the news and had a decent Monday.

Then, The Reminder of What We Ate Kicked In

Remember how I’m always talking about how the Fed cuts would eventually lead to higher inflation?  Well, starting Tuesday economic news reminded us that the Fed cuts have inflation increasing and as we’ve discussed, mortgage backed securities HATE inflation.  Thus, causing interest rates to rise.  Here’s this last week’s breakdown of market moving news:

• Tuesday, the Producer Price Index (PPI) report, which measures prices of goods at the wholesale level, revealed that the year-over-year PPI soared in June, marking the highest year-over-year rate since 1981.
• Also on Tuesday, the Retail Sales report came out. This report measures the total receipts of retail stores.  Tuesday’s report showed that retail sales increased much less than forecast. This may mean that the boost in sales received from the tax rebates may already be fading as consumers are focusing on paying for essentials.
• On Wednesday, the important Consumer Price Index (CPI) report, which measures prices paid by consumers like us. It showed that prices overall are up 5% from a year ago.  This was the largest year-over-year rise since 1991!  Are you surprised?… With the cost of gas and groceries increasing, you really shouldn’t be too surprised.

How Did Things End Up?

Overall, the week was a rough one for mortgage rates.  Depending on the program, mortgage rates worsened between .375%-.50%.    Don’t get upset though, if you can get a mortgage rate in the low to mid 6’s, I’d be super happy!  Your buying power is still extremely strong.  Inflation will only likely get worse until the Fed decides to hike rates, which is an EXTREMELY contreveral subject.

Don’t get too caught up in this week to week news.  It’s always a rollercoaster.  It’s just a matter of your timing, and if you know how many corn dogs the market’s eaten

Stick with me, we’ll get through this.

Here are the statistics (and logic) behind the solution:

• Commuters will travel 20% less.
• Customer service will improve with longer hours.
• Boosts employee morale with a three day weekend.

Iowa’s not the only state considering following Utah’s strategy.  With gas prices pushing $4 a gallon (I seriously wish I could get money each time I see that phrase)… Americans are looking for ways to cut costs.  Apparently going to a 4 day workweek is the leading solution right now.

Do you think that means the mortgage guy will get Friday’s off?…. Doubtful, huh?

It will be interesting to see this topic progress.  I think it would be interesting to see other non-government businesses changing over to a four day workweek.

Original Source: Jennifer Jacobs Article @ The Des Moines Register

Every once in a while I find something so random that I just have to put it out here.  In short, not mortgage related at all.  

THIS, falls into THAT category.

I’m a guy that loves random shirts, videos and quotes from cult classic movies.  Watch long enough and you’ll see what really makes me crack up.

So, here are my questions for this video:

1. How Do They Do This So Fast With Their Feet? 
2. Are They Really Moving Their Feet That Fast… Or Is It In Fast Forward!!?
3. Do People Really Go To Large Rooms And ‘Dance Off’?
4. Is this like the new West Side Story waiting to happen?
    

In Iowa, unemployment increased slightly to 4% in June.  Compare this to 3.8% in June of 2007.  

With the economic slowdown, employment has been effected.  It’s also fair to say that flooding has played it’s part in Iowa’s rise of unemployment.

Here’s the breakdown for June’s employment numbers:

Jobs Lost:

• Government: 3,200 jobs.
• Trade, Transportation, and Utilities: 1,500 jobs.
• Manufacturing: 1,300 jobs.
• Professional and Business Services: 900 jobs.
• Information: 200 jobs.

For a few years, just about anyone could get 100% financing on a home (assuming you could document something….). Well, times have changed and so have the popular loan programs. I’m not here to throw down a bunch of ‘Mortgage Talk’, but I want to let you know that there is Down Payment Assistance (a.k.a. DPA) available in Iowa! This is program that will allow you to receive the down payment that ALL loan programs now require from a non-profit program.

Interested? Read on!

What Is Down Payment Assistance?

Down payment assistance is a program that is offered by many non-profit companies. I personally work with a few, so if you need to connect with one - just let me know. With that said, down payment assistance effectively considered a ‘Gift Source’ by the FHA (FHA is one of the top lenders for low down-payment loans). The down payment assistance is given to the buyer at closing. Also at closing, the seller reimburses the non-profit organization from the profit of their home.

Confused? Don’t be.

If you understand how this program works (which I can help you ‘Get It’), you can use down payment assistance to purchase a home with no repayment of those gift funds.

Cool, huh?

How Much Money Can You Get?

Don’t get greedy here. Ok, if you wanted to, you can get up to 6% of the purchase price from the non-profit.

This could apply towards (or completely cover):

• Down Payment
• Closing Costs
• Pre-paid Items (taxes, insurance, etc.)

What’s It Take To Qualify?

1. You must qualify for an eligible loan product that allows charitable organizations to provide gift funds.
2. There are no reserve requirements (you don’t have to have a bunch of cash in the bank).
3. There are no minimum credit score requirements.

Where Do You Sign Up?

This is the painless pitch. I’d like to consider myself an expert on the subject. Each client is different, so advice will vary. Feel free to get in touch with me or you can stalk me.

What Do You Absolutely Need To Know?

• In order to qualify for down payment assistance, you’re lender has to make sure the program you’re using works.
• Your Realtor needs to know how to properly write an offer to request the down payment assistance (again, I can coach ‘em)
• You HAVE to know the breakdown of all of the numbers. To the penny. You don’t want to end up at closing unable to write a check or even worse, ask for more Down Payment Assistance than you can actually use.

How Long Will Down Payment Assistance Be Available?

No one knows for sure. The mortgage business has been changing A LOT in the past year. If you’re on the fence, you should talk with a mortgage professional to determine what makes most sense for you. We’re not sure what the future holds, but I have a pretty strong opinion and I’m honest when it comes to measuring risk vs. reward.

What’s The Next Step to Do This?

Talk with a mortgage professional who understands these programs inside and out. Again, if you don’t have the numbers put together correctly - you could have some nasty surprises at closing. With that said, this is a great program if used properly!

Don’t wait, just make the call.

I’m a fan of having as much information available before I take action on any big decisions. I don’t know about you, but I think buying or selling a home is a pretty big deal.

As a blogger and mortgage professional, when I receive good information - I pass it on. Home listings and sales are an interesting set of information most of us don’t have super easy access to. Thankfully, I have a Realtor that hammers me with e-mails (Just kidding, I don’t mind them) on market updates and her opinion on where things are at.

Whether you’re looking to purchase, sell or refinance a home - this stuff matters. These statistics are compiled from the Multiple Listing Service and cover the Des Moines, Iowa residential real estate market.

With her permission, I post the facts here so you can come up with your very own market opinion. Here’s this week’s market commentary:

“Things are still a little slower than what they have been, but I think you can attribute some of that to people vacationing around the 4th of July.  Our active listings remains lower than what is was last year at this time which is promising for sellers.  If you are thinking about putting your house on the market now is a great time to do so because we are still seeing lots of buyers out there this summer.  As we move into fall and the holidays traffic will definitely begin to diminish.  As you are thinking about listing your home keep in mind the number of houses that are listed each week in your price range in comparison to the number of houses in that same price range that are getting offers.  Your house needs to stand out above the rest and if you have any questions about how to do that, please contact me.” - Heather Barglof

Blurry?  Click the photo to make it bigger!

Why Does This Chart Matter?

I really enjoy this chart because it gives a breakdown of:

• Days on the Market
• Price Per Square Foot
• Number of New Listings
• Number of Expired Listings
• Number of Price Reductions
• Pending Home Sales (by price)
• New Home Sales (by price)
• All Active Home Sales (by price)
• Best of all, it compares this week vs. last week and last year!

This is a great chart.  I’m not a Realtor and would never try to take the place of one.  If you’re looking for statistics in your specific neighborhood (because your neighborhood is the only one that matters when you’re selling), I can help connect you with the right Realtor for the job!

Are You Currently Buying or Selling a Home?

If you’re currently in the process of purchasing or selling a home, please don’t hesitate to get in touch with me.  I’d love to give you a quick mortgage review to make sure you’re getting the right advice.

Are We Drinking The Same Kool Aid?

If you’re a super cool person and have any market statistics you think our readers would find valuable, please feel free to contact me. If it’s relevant, It’ll show up here!

I Know Stuff

If you’re looking for my professional opinion or looking for a comment (press related), please contact me here.

Photo Kudos

So, lets say you are looking for a way to connect with Tyler.

You Might:

• Have a Question You Need Answered.
• Have a Concern You Want Addressed.
• Need a Pre-Approval.
• Want a Custom Rate Quote.
• Want a Comment on a Story. (Press)

Great!  We’re super easy; to get to in touch with.  Here’s how YOU can get in touch with US!

1. Office Phone: 515-991-7102 (Answered 7 Days a Week).
2. E-Mail: Tyler@TylerOsbyTeam.com
3. Applying Online (24/7): http://www.applywithtyler.com (handy, huh?)
4. Twitter: @TylerOsby
5. LinkedIn: http://www.linkedin.com/in/tylerosby
6. GTalk: tylerosby@gmail.com
7. MSN: tyler@iowamtg

Yea, we’re sort of everywhere.  Once talking with us, you’ll find that we’re BIG on transparency in the mortgage industry.  Hopefully with so many places for you to find us, you’ll know we’re extremely easy to talk to!

I love to answer questions.  If you have one, please ask it.  There is no such thing as a ‘Dumb Question’.

You only think about home financing a few times during your life - we think about it every single day.  It’s your home and your future.  It’s our profession and our passion.  We’re ready to work for your best interest!