Homes built before 1978 may have traces of lead base paint in the homes.  High levels of lead was used in paint before 1978.  That’s why most people do not worry about lead in homes built after 1978.  However, you never know if a homeowner had old paint laying around and used it after 1978.  Lead also comes from toys, drinking water, furniture, crystal, pottery and you could be bringing it home from your job.  To learn more, click here.

The way to control is mold is to control moisture. There are different kinds of mold or often referred to as “mildew”. Mold is a living organisms that produce “spores” tiny particles that float in the air. Mold does not affect everyone but some people made have flu like symptoms. To learn more see the attached brochure.  Click here.

In January 2007 Trendmls reported that there were 135 closed settlements with an average sales price of $238,000 and the average sales price to offer price was 96.73%. In January 2008 there were 74 settlements with an average sales price of $235,00 and average sales price to offer price was 94.78%. In January 2009 there were 54 closed settlements with an average sales price of $212,000 and average sales price to offer price prices was 91.63%. To learn more about about these market stats, click here.

Real Estate is leverage. Leverage is what the wealthy use to build more wealth. Despite the downward trend in the economy real estate is still leverage. The abnormal increase in real estate values between 2004-2006 were a fad. On average property values increase between 3-7 % a year. If we did not have the boom in 2004-2006 we would be exactly where we are suppose to be it the market got the normal increase of 3-7% year. The shift in the market was just a realignment to put us back on track. The wealthy built their wealth with normal increases in property value.

Increase rates are the lowest they have been in 0ver 30 years and home prices down.  There isn’t a better time to invest.  Just like stocks you want to buy will the stock is down, well real estate is the same way.  So, real estate is still the best place to invest.

WHY YOU NEED A REALTOR®
A licensed real estate professional provides much more than the service of helping you find your ideal home.
Realtors® are expert negotiators with other agents, seasoned financial advisors with customers, and superb navigators
around the local neighborhood. They are members of the National Association of Realtors® (NAR) and must abide by
a Code of Ethics and Standards of Practice enforced by the NAR. A professional Realtor is your best resource when
buying your home.
LET A REALTOR BE YOUR GUIDE
• A knowledgeable Realtor can save you endless amounts of time, money, and frustration.
• A knowledgeable Realtor knows the housing market inside and out and can help you avoid the “wild goose
chase.”
• A knowledgeable Realtor can help you with any home, even if it is listed elsewhere or if it is being sold
directly by the owner.
• A knowledgeable Realtor knows the best lenders in the area and can help you understand the importance of
being preapproved for a mortgage. He or she can also discuss down payments, closing costs, and monthly
payment options that suit you.
• A knowledgeable Realtor is an excellent source for both general and specific information about the community
such as schools, churches, shopping, and transportation—plus tips on home inspections and pricing.
• A knowledgeable Realtor is experienced at presenting your offer to the seller and can help you through the
process of negotiating the best price. By bring objectivity to the buying transaction, he or she can point out the
advantages and the disadvantages of a particular property.
And the best thing about your Realtor is that all this help normally won’t cost you a cent. Generally speaking, the
seller pays the commission to the Realtor (but this may vary from province to province and state to state).

Fannie Mae wants to continue to provide financing for high-credit quality (minimum of 720 credit score) investors because experienced investors bring stability, liquidity and affordability to the housing system. Which in turn plays a key role in helping the housing market recover.

Fannie Mae is making changes again to their policy about multiple mortgages to the same borrower. Before the housing boom, borrowers could have 10 (ten) financed properties which they held individual or joint ownership interest and the mortgage was delivered and backed by Fannie Mae.   In 2008 this was changed to 4 (four) financed properties.  The new modifications will allow investors and second home borrowers to own five to ten financed properties if they meet certain eligibility and underwriting and delivery requirements.

Underwriting guidelines for the borrower:
1. No history of bankruptcy or foreclosure within the last seven years.
2. No delinquencies (30-day or greater) within the last 12 months on any mortgage loans.
3. Rental income on the subject investment property must be fully documented.
4. Rental income from other properties owned must be supported by two years’ federal income tax returns.
5. Complete and sign Form 4506  Request for Copy of Tax Return or 4506-T Request for Transcript of Tax Return.  This allows the lender permission to request copies of federal income tax returns directly from the IRS.   The lender then must validate the accuracy of those tax returns provided by the borrower prior to the loan closing.
6. Reserves on hand varies depending on whether the subject property is a second home or investment property, and on the number of other financed properties the borrower currently
a. When the borrower will own one to four financed properties (including the subject property) the reserve requirements are:
 Two months of reserves on the subject property if it is a second home,
 Six months of reserves on the subject property if it is an investment property, and
 Two months of reserves on each other financed second home or investment property.
b. When the borrower will own five to ten financed properties (including the subject property) the reserve requirements are:
 Two months of reserves on the subject property if it is a second home,
 Six months of reserves on the subject property if it is an investment property, and
 Six months of reserves on each other financed second home or investment properties

Reserves are those liquid or near liquid assets that are available to a borrower after the mortgage loan closes. Reserves are most often measured by the number of months of principal, interest, taxes, and insurance (PITI) that a borrower could pay using his or her financial assets.
Fannie Mae is expanding the definition of reserves to include all components of the monthly housing expense (PITIA), including:
• principal and interest,
• hazard, flood, and mortgage insurance premiums (as applicable),
• real estate taxes,
• ground rent,
• special assessments,
• any owners’ association dues (excluding any utility charges that apply to the individual
unit),
• any monthly cooperative corporation fee (less the pro rata share of the master utility charges
for servicing individual units that is attributable to the borrower’s unit), and
• any subordinate financing payments on mortgages secured by the subject property.

Pull your credit at www.annualcreditreport.com and you can dispute them online. Or write a letter to all three credit bureaus explaining the discrepancies. Attach any documents you may have to verify the dispute. Contact the company that the dispute is with to see if it was an over sight on their part. Maybe, you could work something out with them.

1. Have a plan and write it down. Ask yourself where you would like to be in five years. Have an idea of where you money is going. Write down everything you spend and what you save.

2. Maximize your 401k plan.

3. Check on your Social Security benefits at www.ssa.gov

4. Power down your debt. Eliminate credit cards, car payments, personal loans. Start with paying off the highest interest rates first.

5. Find out what is on your credit report. Take your name off of the list that generates the pre-approved credit card offer. Contact each of the credit bureaus: www.equifax.com, www.experian.com, www.transunion.com

6. Compound your interest and watch it grow! If you put just $2,000 a year into a Roth IRA or a 401k from the age of 21, you can expect to retire at 65 with almost TWO MILLION dollars in the bank! If you are over 50, you can play “catch up” by contributing at least $3,000 a year. It is never too late to start a retirement plan! Take advantage of tax deferred college savings programs as well. And make sure you are aware of changes in the tax laws.

7. Diversify! Have three to six months of your living expenses readily available by investing in mutal funds or a money market account.