My New Blog

 A lot of my friends in the real estate business come to me with this question: "Where can my buyers go to find the lowest interest rate?" 

 Considering that I spent more than a decade working as a loan originator, and years before that in real estate sales, you’d think I could give them a clear-cut answer. Maybe I would have, a few years ago.

 But today, I tell these friends they’re asking the wrong question. Their prime concern should not be getting the lowest interest rate but rather finding a lender who’ll approve their customer’s loan.

 A short time ago, a borrower with almost any credit profile could go into almost any mortgage broker and find a loan. All he or she needed was the motivation to buy. Clearly, this is not the case now. The current mortgage market and its guidelines are quite fluid.

 That’s why you need to know the differences between the three basic types of mortgage origination companies: banks, brokers, and correspondents. Even with the creation of an overarching consumer financial protection bureau, each type of lender follows different laws about what must be disclosed and each is overseen by a different regulatory agency. 

 To help your customers get approved for a loan, you have to know the best place for them to go.

 Banks. Though there are exceptions, these institutions typically have underwriters on staff and close loans with their own money and in their own name. Their employees receive a base salary, which can make for less pressure and aggressiveness. 

 But since they work banker’s hours, they might not be available if clients need something at 3 p.m. on Sunday. Banks don’t have to disclose yield (the additional profit created by hiking the interest on a loan above market rate). Banks often have niche products for borrowers with a unique purchase—for example, manufactured homes or home construction. Every bank will have its own minimum credit score requirement.

 Brokers. These guys get a bad rap, but their business is very transparent in this market and they’re highly regulated. Under the recent Wall Street reform, the law pertaining to brokers is even more consumer-friendly. With respect to compensation, they can collect yield or an origination fee, but not both. They work on commission and make a little more than the bankers. 

 Brokers will compile your file and present it to a bank or other investor, and this can take more time since they’re shipping the file to a third party. They charge more fees and often have higher credit score requirements than banks due to a concept called "layering"—typically, a bank’s minimum credit score will be 20 or 40 points lower than that of the brokers who wholesale to them. 

So if your customer’s credit score is below 620, he or she shouldn’t start shopping at a broker.

 Correspondents. The company structure of correspondent lenders is almost a secret; even the brightest of people have a hard time knowing if they’re dealing with a correspondent. Rather than using their own money to extend mortgages, as banks do, correspondent lenders draw from their credit lines (often called warehouse lines). 

 Within days of closing, sometimes hours, they sell the mortgage. Their ability to lend is subject to their credit line limits. If they have more loans to close than they have funds, loans can be delayed or declined for no apparent reason to the borrower. Correspondents don’t have to disclose yield, but because layering is in effect, credit score requirements may be higher than at banks.

 I’ll be the first to admit that it’s not easy to understand these differences. But that knowledge is crucial. If you or your clients don’t know if a lender is a bank, broker, or correspondent, just ask. And if the loan is declined, find out why. Know your customer’s financial profile and transaction needs, and learn about the lenders that are in your market.

 Holly Alred is a former mortgage broker and real estate practitioner based in Salem, Ore., Alred is author of the self-published book The Mortgage Coach: A Consumer’s Guide to Finding the Right Mortgage.

Size does matter when it comes to the perception of space in a home. That’s why it’s important to make sure you show off every square foot of your listing so that buyers can visualize enough room for all of their belongings.

However, home owners often crowd spaces with oversized furniture, bulky accessories, and piles of clutter that wind up making a room look much smaller than what it really is, says staging pro Jennie Norris, president of the International Association of Home Staging Professionals.

So how can you show off that space in your listings? Besides the obvious of removing clutter, try these simple ideas from Norris.

1. Scale down the furniture: By having too many large pieces of furniture in a small room, a space can feel more cramped, Norris says. Select smaller-scale furniture over large, chunky options. A good choice: furniture with wooden legs or unskirted chairs, so that you can see through the furniture to the floor underneath to open up a room.

2. Beware of overly busy patterns: Too many bold patterns in a room with fabrics and accent pieces can make a room feel smaller, Norris says. Big prints, bold plaids, and large floral patterns can be too busy for a small space. Stick to solids and use texture in fabrics to add interest.

3. Lighten Up: Dark colors absorb the light making small rooms look even smaller. “The general color rule for small spaces is lighter is better,” Norris says. Lighter colors on walls — such as creams, light blues, light greens, tan, and soft yellows — help expand the room. Plus, softer, cooler tones are soothing and relaxing, she adds. 

4. Add height: Bring in anything that is tall to show off the height of the space. Whether it’s a piece of furniture such as a bookcase or an object like a tall tree, the height of the object will draw the eye upwards. Also in a house where you want to show off the height, hang the curtains above the normal window top level, Norris says. To widen the window, tie the curtains back with a rope tieback to show off the windows.

5. Use the reflection: Hang mirrors on walls to help add visual space. “When the room is reflected in the mirror, it can make us feel like there is more space as we see ‘another room’ in the mirror,” Norris says. “Mirrors can also reflect light and views, which will help lighten up the room and make it feel open and airy.”

Three Reasons to Buy a Home Now

Stocks are up 50 percent from the March 2009 bottom. Some commodities have risen dramatically. The only asset class left in the cellar is real estate, says Michael Murphy, editor of the New World Investor stock newsletter.

As a result, Murphy is advising investors to buy now for these three reasons:

• Desperate sellers: Both home owners and lenders are eager to unload a flood of foreclosed and underwater properties. Buyers with the patience to push through these complex deals can save a bundle.

• Little competition. Because most people don’t have what it takes to negotiate their way through short sales and REOs, patient investors are winners.

• Low rates. Mortgage rates are at their lowest level in 40 years. If you believe inflation is inevitable, lock in now.

Source: MarketWatch, Michael Murphy (08/19/2010)

Local REALTOR attends Oklahoma REALTOR Institute

Oklahoma City, Oklahoma REALTOR Stacy Lyons recently attended the REALTOR Institute module held in Oklahoma City.

The REALTOR Institute is a national professional designation program consisting of more than 90 hours of classroom instruction, covering a variety of subjects including: contract law, professional standards, marketing,negotiation skills, finance, technology and risk management.  In addition, students learn the fundamentals of brokerage management, investments and other areas of real estate specialization.

Successful completion of all six modules leads to the "Graduate REALTOR Institute"(GRI) designation for members of the Oklahoma Association of REALTORS.  The program is designed to educate practitioners and about local, state and national real estate practices that affect them, their clients and customers.  The Oklahoma Realtor Institute faculty is comprised of leading real estate professionals from across Oklahoma and the nation bringing the highest quality and most up-to-date information.

The GRI designation sets apart the individuals who attained it from other practitioners because it indicates to the public that the individual has obtained a specialized educational foundation on which to base the services they provide. Currently, only about eight percent of Oklahoma REALTORS have reached this professional distinction.

The slow moving process of short sales have made it impossible for many buyers who had a contract accepted by April 30, 2010 to meet the deadline for closing by the 30th of June to qualify for the government tax-credit.  So it was a relief when a bill was introduced in the Senate in June to extend the closing deadline to September 30, 2010 for contracts that were already accepted.  As many as 180,000 households could benefit now that the bill has passed NAR estimates.  Mean while, members of the military,intelligence agencies, and Foreign Service who spent at least 90 days overseas last year have until the end of April 2011 to get a contract in writing in order to qualify for the tax-credit

So if you were serving overseas for at least 90 day last year you still have time to find a home and get your tax-credit.  Give me a call (405) 361-1006 and I can start helping you today to meet your deadline.

Stacy Lyons

Realtor,CHMS,e-PRO,AHWD,SFR

Ronck Realty

            National Association of Realtors SFR Designation

Stacy Lyons and the NATIONAL ASSOCIATION OF REALTORS (NAR) are pleased to announce the arrival of REALTOR Designation SFR which encourage its members to enhance their knowledge about the short sale process and how to help their clients with the process of Short Sales.

The SFR certification program is offered by the Real Estate Buyer’s Agent Council of NAR. The program includes training on how to manage short-sale, foreclosure, and real-estate owned transactions, and provides resources to help Realtors® stay current on national and state-specific information as the market for these distressed properties

In today’s market, continuing education is your best way to stay ahead of the competition. Now more than ever, successful agents must keep current on issues, involving technology, changing legalities, and many other central components of the business. NAR and its nine Institutes, Societies and Councils offer advanced education designation and certification programs to help members remain up-to-date in such a dynamic environment. Although other designations exist, only these carry an official NAR endorsement. Now thanks to NAR’s Right Tools, Right Now initiative many high-value online education courses are being offered.

“REALTORS^" have access to advanced education designation and certification programs, tailored to virtually every real estate specialty. Beyond building skills, knowledge and productivity, these prestigious programs enhance the professional image of REALTORS and take our members to the next level”, said Stacy Lyons, with Ronck Realty.

The NATIONAL ASSOCIATION OF REALTORS and Stacy Lyons strongly encourage its members to increase their professional image, marketability, productivity, and to provide better service through the pursuance of a designation or certification program.

For a complete list of the official NAR family designations and certifications, visit http://www.realtor.org/education