Cindy Bradley Mortgage Team Cheyenne Wyoming

Home Prices Fall

2012-01-31T12:39:00.000-08:00

According to the Case-Shiller Home Price Index, prices in the 20-City Composite fell in 19 of the 20 cities from October to November. Only Phoenix saw an increase, with prices moving up .6% from October to November. Prices were also down 3.7% from November 2010 to November 2011.The Case-Shiller Price Indices are constructed to accurately track the price path of typical single-family homes located in each metropolitan area provided.

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Personal Income Increases

2012-01-30T09:04:00.000-08:00

According to the Bureau of Economic Analysis, personal income for December increased .5%, up from an increase of .1% in November. Disposable personal income also increased in December, up .4% from November.Personal income is an individual's total earnings from wages, passive enterprises, and investment interest and dividends. Disposable income is the amount left over after taxes.

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Fourth Quarter GDP Rises 2.8%

2012-01-27T09:40:00.000-08:00

Fourth quarter GDP rises 2.8%, the fastest growth since Q2 of 2010. Though a large percentage of the increase is a result of a buildup in inventories, consumer spending also saw an increase from the previous 2011 Q3 reading. From Q3 to Q4, consumer spending increased 2.0%, up from 1.7%.Gross Domestic Product is a measure of the total production and consumption of goods and services in the U.S. GDP components like consumer spending, business and residential investment, and price (inflation) indexes illuminate the economy's behavior.

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Wyoming Ranked Best State for Business Tax Climate

2012-01-27T08:41:00.000-08:00

According to a recent study by the Tax Foundation Research Group, Wyoming is the best state for Business Tax Climate.

please visit the full report at this link:
http://www.taxfoundation.org/research/show/22658.html

from the website...

...by comparing the states on 118 different variables in the five important areas of taxation (major business taxes, individual income taxes, sales taxes, unemployment insurance taxes, and property taxes) and then adding the results up to a final, overall ranking. This approach has the advantage of rewarding states on particularly strong aspects of their tax systems (or penalizing them on particularly weak aspects) while also measuring the general competitiveness of their overall tax systems. The result is a score that can be compared to other states’ scores.

Durable-Goods Orders Rose 3%

2012-01-26T13:12:00.000-08:00

Durable-goods orders rose 3.0% in December, marking the third consecutive month of gains. The increase was fueled in large part by an 18.9% increase in nondefense aircraft and parts, though primary metals, machinery, electronics and communications equipment all saw nice gains.Durable-goods orders measures new orders placed with domestic manufacturers for immediate and future delivery of factory hard goods. A durable good is defined as a good which lasts an extended period of time (over three years).

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Unemployment Rate - Latest Readings

2012-01-24T11:37:00.000-08:00

Because Housing and Jobs are so closely related, it is important to watch for changing trends in the Unemployment level. The chart below displays current levels of Unemployment by state. This information will be updated monthly.

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Mortgage Market Guide - Unemployment Rate

Existing Home Sales Increased 5%

2012-01-23T09:18:00.000-08:00

Existing-home sales for December 2011 increased 5% from November. This is the third consecutive month of increases and the second highest reading of 2011. The December level was also 3.6% above December 2010, and as a whole, existing-home sales were up 1.7% from 2010. Total housing inventory dropped 9.2% for December, representing a 6.2-month supply, down from a 7.2-month supply in November.Existing Home Sales is a measure of the selling rate of pre-owned single-family homes, collected by the National Association of Realtors from 650 realtor associations. It includes a geographical breakdown, as well as a measure of prices and house inventory, the number of months it would take to deplete the existing supply of pre-owned houses at the current sales pace.

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11 Housing Trends from 2011

2012-01-17T07:49:00.001-08:00

Housing News: 11 Trends from 2011

The National Association of Realtors® surveys homebuyers and sellers each year to uncover housing trends and monitor changes taking place in the industry. This year's report highlights a number of trends that haven't been seen in years. Here are just 11 highlights from the 2011 report.
1. In 2011, 37% of homebuyers were first-time buyers - which was down from 50% in 2010.
2. Last year, 88% of homebuyers used the Internet to search for a home. That number was down slightly from a high of 90% in 2009.
3. The typical homebuyer searched for 12 weeks and viewed 12 homes.
4. The number of buyers who purchased their home through a real estate agent or broker climbed to 89% - a share that has steadily increased from 69% in 2001.
5. Nearly 1 out of 4 buyers said the application and approval process was "somewhat more difficult" than expected…and 16% reported it was "much more difficult" than expected.
6. About half of home sellers traded up to a larger and more expensive home…and 60% traded up to a new home.
7. The top 3 factors influencing neighborhood choice were: the quality of the neighborhood, the convenience to job, and the overall affordability of homes.
8. The typical seller lived in their home for 9 years. That number has increased from 6 years in 2007.
9. Although 61% of sellers said they reduced their asking price at least once, the average home sold for 95% of the listing price.
10. Only 10% of sellers sold their homes without the assistance of a real estate agent. Of those people, 40% knew the buyer prior to the sale.
11. The typical "for sale by owner" home sold for $150,000 compared to $215,000 for the average agent-assisted home sale.
All Contents ©2012 The National Association of Realtors®.

Near-Term Mortgage Rates Hover at Ceiling of Resistance

2011-12-22T12:33:00.000-08:00

In this chart, the black-dotted line is serving as a tough ceiling of resistance. Outside of the short-term breakout back in the Fall - prices have not been able to get above this ceiling, meaning that in the near-term pricing is about as good as it can get. However - as technical analysis tells us, if prices break above this ceiling, that tough resistance would now become a floor of support. So instead of the horizontal line being about as good as prices can get, it could represent about as bad as prices could get. What event could make that happen? Escalating Eurodrama or another round of Fed MBS buying...QE3.

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Unemployment Rate - Latest Readings

2011-12-21T08:24:00.000-08:00

November Unemployment Rate
Because Housing and Jobs are so closely related, it is important to watch for changing trends in the Unemployment level. The chart below displays current levels of Unemployment by state. This information will be updated monthly.

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Mortgage Market Guide - Unemployment Rate

November Housing Starts Increase

2011-12-20T08:44:00.000-08:00

November Housing Starts Increase
Housing starts for November rose 9.3% to 685,000. The highest annual rate since April 2010. Leading the way was multi-family units, rising 32.2%. Single-family units saw an increase of 2.3%. Over the last year, housing starts are up 24.3%.The Housing Starts report measures the number of residential units on which construction is begun each month. A start in construction is defined as the beginning of excavation of the foundation for the building and is comprised primarily of residential housing. Changes in the rate of housing starts tell us a lot about demand for homes and construction outlook. Furthermore, each time a new home is started, construction employment rises, revenues for the home builder and a myriad of other producers also increase; the economic "ripple effect" can be substantial.

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DJIA Average Monthly Returns Chart

2011-12-19T10:38:00.000-08:00

DJIA Average Monthly Returns
Displayed in this chart are the average monthly returns for the Dow Jones Industrial Average since 1929. July tops the list with an average return of 1.5%, while December and January come in second and fourth overall. It's possible stocks could be in for gain before year-end because of something that's become known as the "Santa Claus Rally". The Santa Claus Rally is usually a surge in Stocks in the week between Christmas and New Years. So keep an eye on Stocks in the week ahead.

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Initial Jobless Claims Reach 3-Year Low

2011-12-15T08:53:00.000-08:00

Initial Jobless Claims Reach 3-Year Low
Initial jobless claims dropped 19,000 for the week ending December 10th to 366,000. This marks the lowest level for initial claims since May 2008. Though the weekly claims report can be volatile, 5 of the past 6 weeks have come in below the 400,000 mark. A sign that perhaps the employment sector is improving. The 4-week average for initial claims also fell, dropping 6,500 to 387,750.This report is timely and occasionally moves the market. Although volatile and subject to big revisions, it is considered a good gauge of labor market conditions and an indicator of the employment report.

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Consumer Sentiment Reaches 6-Month High

2011-12-09T09:15:00.000-08:00

Consumer Sentiment Reaches 6-Month High
The comsumer sentiment reading increased for December coming in at 67.7, up from the November reading of 64.1. This is the highest reading since June and the 4th consecutive month of gains since the 2011 low of 55.7 in August.This survey measures the attitudes and expectations concerning both present and future economic conditions of 500 consumers. Just like Consumer Confidence, the level of consumer sentiment is directly related to the strength of consumer spending.

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Initial Jobless Claims Drop

2011-12-08T10:41:00.000-08:00

Initial Jobless Claims Drop
Initial jobless claims fell 23,000 to 381,000 for the week ending December 3rd. This is the lowest level for first time filings since the week ending February 26, 2011. That date also marks the lowest level of 2011. As listed on the chart, the highest level for 2011 was for the week ending April 30.Initial jobless claims measure the number of people (non industry-specific) filing first-time claims for state unemployment insurance. This report provides a timely indicator of the direction of the economy, with changes in claims potentially signaling changes in job growth. Because the weekly data can sometimes be misleading, the four-week average can be used as a more accurate gauge. This also came in lower, falling 3,000 to 393,250.

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Pending Home Sales Surge

2011-11-30T11:29:00.000-08:00

Pending Home Sales Surge
Pending home sales for the month of October climbed 10.4% to 93.3, the highest level of 2011. This also represents a 9.2% increase over October of last year.Pending home sales is a forward looking indicator that measures housing contract activity. It is based on signed real estate contracts for existing single-family homes, condos and co-ops. A signed contract is not counted as a sale until the transaction closes.

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Latest Unemployment Rates by State

2011-11-28T09:31:00.000-08:00

Because Housing and Jobs are so closely related, it is important to watch for changing trends in the Unemployment level. The chart below displays current levels of Unemployment by state. This information will be updated monthly.

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Mortgage Market Guide - Unemployment Rate

Existing Home Sales Increase

2011-11-21T09:10:00.000-08:00

Existing home sales for October rose to 4.97 million, a 1.4% increase from September, and a 13.5% increase from October 2010. An additional positive sign is the decline in the number of homes on the market. Total inventory for October fell 2.2% from September. This represents an 8.0 month supply at the current sales pace, down from 8.3 months in September. Existing Home Sales is a measure of the selling rate of pre-owned single-family homes, collected by the National Association of Realtors from 650 realtor associations. Sales of existing (or pre-owned) houses account for roughly 84% of all houses sold. Sales of new houses account for the other 16%. Simply put, the volume of sales indicates housing demand.

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Building Permits Surge

2011-11-17T09:28:00.000-08:00

Building permits rose to 653,000 in October. A 10.9% increase from September and 17.7% higher than October 2010. This is the largest number of permits for 2011 and represents the most since March 2010. The building permits report is used as a guide to gauge future signs of construction. Housing construction is significant in that builders generally don't start a house unless they are fairly certain it will sell upon its completion, if not before. Increased building permits, and then a subsequent increase in housing starts can tell a lot about home demand and construction outlook.

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Year Over Year CPI Falls

2011-11-16T08:26:00.000-08:00

Year-Over-Year CPI Falls
The Consumer Price Index (CPI) fell 0.1% in October. The 12-month reading of 3.5% comes in lower than September's reading of 3.9%. This chart displays the year-over-year CPI readings for the last 10 months. Generally, as inflation eases, bond prices rise. Higher bond prices can have a beneficial effect on home loan rates as they could potentially push lower.

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Retail Sales Continue to Climb

2011-11-15T14:24:00.000-08:00

Retail Sales Continue to Climb
Retail sales increased .5% to $397,666 million in October. Though the percentage increase was down from 1.1% in September, it marks the second straight month of strong sales and continues an upward trend in consumer spending. The increase in October brings the 2011 level 7.2% above that of October 2010.

This chart shows monthly retail sales since May 2011 in millions.

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USAA & Military.com, 2011 Best Places for Military Retirement

2011-11-14T14:45:00.000-08:00

Cheyenne placed #1 (for Small Metros category with populations of less than 175,000) on this recent ranking of the best places for military retirement.

click on the link below then click on the Additional Rankings Tab and then on Small Metros to see Cheyenne's ranking.

https://www.usaa.com/inet/pages/enterprise_retirement_best_places_landing?adID=VURL_bestplaces

Job Openings Increase

2011-11-09T09:02:00.000-08:00

Job Openings Increase
According to the Job Openings and Labor Turnover report (JOLTS), the number of job openings in September was 3.4 million, up from the August reading of 3.1 million. Although the number of job openings is still below the pre-recession reading of 4.4 million in December 2007, there has been significant improvement since the low in 2009. The September 2011 level was 1.2 million higher than the 2009 low (set in July) and represents a 38% increase since that time.The chart on this page shows the job opening readings for the past two years, starting in October 2009 and going through the most recent reading for September 2011.

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October Job Gains

2011-11-04T09:22:00.000-07:00

October Job Gains
According to the Labor Department, 80,000 jobs were added for the month of October. Though down slightly from expectations, there was good news regarding employment as both the September and August readings saw large revised increases. August was revised up 47,000 to 104,000, while September was revised up 55,000 to 158,000. The revised September data is the largest jobs gain since April.Though jobs are still being created at slow pace, the revised numbers continue a recent trend of faster growth since a slow early part of the summer.

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Meteoric Stock Increases

2011-10-28T09:00:00.000-07:00

Meteoric Stock Increases
The Dow Jones Industrial Average and S&P 500 saw historic gains in the month of October. The Dow advanced 13.5%, it's biggest gain since January 1987. The S&P 500 saw an increase of 12%, it's largest gain since October 1974. Optimism surrounding Europe, positive economic data and better than expected earnings reports all helped these indexes to huge monthly gains. How does this affect home loan rates? Home loan rates pushed up in October in large part due to the meteoric rise in stocks. As investors looked to take advantage of favorable stock conditions, money flowed out of bonds. With all the money coming out of bonds, home loan rates took a hit.

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3rd Quarter Gross Domestic Product Nearly Doubles

2011-10-27T08:27:00.000-07:00

Q3 GDP Nearly Doubles
Growth in the U.S. economy picked up during the third quarter as the gross domestic product from July through September increased at a rate of 2.5%. Nearly double the Q2 reading, and well above the reading from Q1. This represents the fastest growth of 2011, and the largest increase in a year. While this is likely good news for stocks, it could have an affect on home loan rates as money moves out of bonds and into stocks.

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New Home Sales Rise

2011-10-26T09:03:00.000-07:00

New Home Sales Rise
According to the U.S. Census Bureau and the Department of Housing and Urban Development, new home sales for September climbed to 313,000. This is up nearly 6% from the revised August rate of 296,000. As you can see from this chart, September comes in just below the 2011 high of 316,000 set in April. The median sales price of a new home sold in September was $204,000 while the average sales prices was $243,900.

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16 of 20 Cities Have Improvement In August

2011-10-25T08:20:00.000-07:00

16 of 20 Cities Have Annual Improvement in August
The Case-Shiller 20-city index rose .2% in August marking the 5th consecutive month of gains. This map displays the city-by-city changes from the July levels. Though only 10 of the cities posted positive changes in August from July, 16 of the 20 cities saw their annual rates improve during the month. These improved annual rates show potential optimism in the still struggling housing market. Los Angeles and Miami had no annual change in August, while Atlanta and Las Vegas saw annual rates fall. The index is down 3.8% year-over-year from August 2010.

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Unemployment Rate - Latest Readings

2011-10-22T09:02:00.000-07:00

Wyoming has the 5th lowest unemployment rate in the country.

Because Housing and Jobs are so closely related, it is important to watch for changing trends in the Unemployment level. The chart below displays current levels of Unemployment by state.

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Philly Fed Has Positive Reading

2011-10-20T09:24:00.000-07:00

Philly Fed Has Positive Reading

The Philadelphia Fed Index rose to 8.7 for the month of October, the first positive reading since July. As you can see in this chart the readings have bounced around in recent months, with very low readings the two months prior.The Philly Fed Index has a high market impact, with a 78% positive correlation with the national ISM index (which monitors employment, production, orders and delivers by manufacturing firms). A positive Philly Fed Index, and a corresponding positive ISM reading generally favor stocks, which can move money out of bonds and affect home loan rates.

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September Housing Starts Rise

2011-10-19T08:40:00.000-07:00

September Housing Starts Rise
Housing starts for September were at a seasonally adjusted rate of 658,000. A 15% increase from the August estimate of 572,000. This 15% increase represents the fastest growth pace in 17 months. Housing starts were led by multi-dwelling units, but does offer a glimmer of hope for the sluggish housing market.As you can see in this chart, September is the current high for 2011, with the low occurring in February with 518,000 housing starts

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Producer Price Index - largest increase since April

2011-10-18T08:24:00.000-07:00

Producer Price Index (PPI) Year Over Year...
The Producer Price Index rose 0.8% in September, the largest increase since April. The PPI measures inflation on a wholesale level. Increases in wholesale costs generally increase the price of consumer goods as companies pass on increased costs to consumers. In this chart, you can see the change in finished goods over the last 12 months. Though September 2011 is down slightly from the 2011 high of 7.2 in July, the change in finished goods is up sharply year over year. Remember, inflation is the archenemy of bonds, so Bond market players will be keeping a close eye on these numbers.

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September Retail Sales...largest increase in 7 months

2011-10-14T07:49:00.000-07:00

September Retail Sales
U.S. retail sales saw it's biggest increase in 7 months with a 1.1% gain in September. This represents a 7.9% increase over September 2010. Sales of automobiles increased 3.6%, with nearly 1.1 million vehicles sold. The biggest auto increase in over a year. When factoring out the large increase in vehicle sales, retail sales still rose .6%, beating expectations -

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Mortgage Rates Plunge Beyond Expectations

2011-10-05T09:39:00.000-07:00

Mortgage rates plunge beyond expectations - Plus, why low rates don’t translate into a spike in home sales
By Amy Hoak, MarketWatch
Last Update: 12:01 AM ET 10/5/11Terrence Horan/MarketWatch

CHICAGO (MarketWatch) — Economists and bankers who follow mortgage rates religiously think that rates don’t have much farther to drop from record lows. They expect that rates can only go up. But they also know they’ve been wrong before.
“It’s hard to imagine how long-term, 30-year fixed-rate mortgages could go lower than they are right now,” said Frank Nothaft, chief economist of Freddie Mac. “These are the cheapest rates we’ve ever seen.” Admittedly, he would have said the same thing six months ago.

That’s because earlier this year, Nothaft and others weren’t expecting such a weak economy. Concerns about European markets have unsettled the market, too. And in September, the Federal Reserve announced its commitment to sell short-term government securities and buy long-term securities, a plan known as Operation Twist. The Fed also pledged to purchase mortgage-backed securities, with the proceeds of securities that mature. Read more: Fed decides on $400 billion bond swap.

All of the above put downward pressure on mortgage rates.

And while mortgage rates move daily, those rates have been at or near record lows: Rates on the 30-year fixed-rate mortgage averaged 4.01% for the week ending Sept. 29, according to Freddie Mac. That’s the lowest rates have been in the survey’s history, which dates back to 1971. Read more: 30-year mortgage rates just barely above 4%.

“My take on this is that certainly interest rates could push lower. We’ve been surprised numerous times,” said Bob Walters, chief economist of Quicken Loans, an online lender.

However, he says there’s more of a risk of a surprise increase in rates than a surprise decrease. That’s because the Fed’s actions are already priced into the market. And with the economy limping along, it’s hard to imagine things could get much worse.

Low mortgage rates are advantageous for buying a home or refinancing the home loan you already have. But, remember, the big reason they’re so low now is because the economy is in such bad shape — and most of us would likely pick job security over an ultra-low mortgage rate.

Still, some borrowers are charmed by the notion of getting a 30-year fixed-rate mortgage at a rate below 4%. In fact, some are paying points to buy down their rate “to say they had a loan below 4%,” said Stephen M. Calk, chief executive of Chicago Bancorp, a privately held retail mortgage bank.

While getting the lowest mortgage rate possible may give someone bragging rights, Calk advises against people being too greedy. Walters agrees: If you have a mortgage at 5% and you could refinance at 4.25%, waiting for the rate to fall an additional 25 basis points could cost you.
“The alternative is that if you don’t take 4.25%, you’re at 5% for the rest of your life,” Walters said.

Effect on the housing market
While the low mortgage interest rate environment this year hasn’t translated into a boom in home sales, the low rates have had a subtle — and positive — effect on the housing market, Nothaft said.
“Construction is running about the same low pace as last year. Single family home sales are running at the same low pace as last year, and without rates being as low as they are now, the market would be worse,” Nothaft said. “That’s not insignificant because if you turn back the clock and think about 2010, we had an important stimulant to drive home sales. That was the federal income tax credit.”
The credit of up to $8,000 for buyers enticed some people to make a home purchase last year.
“That [sales are] running at about the same clip is a testament to some of the power of the high degree of affordability, and much of that affordability of late is driven by record low fixed-rate mortgage rates,” Nothaft said.
Even so, many think that even rates below 4% would fail to cause home sales to spike dramatically, given consumer confidence that is still marred by high unemployment and worries about a double-dip recession.
“It takes more than low mortgage rates to get off the dime and buy a house,” said Michael Lea, real estate professor at California State University San Diego.
For younger would-be buyers, the low rates aren’t anything to get too excited over — and certainly no reason to buy right now, said Charlie Young, chief executive of ERA Real Estate.
“To a whole generation of buyers, it’s not new,” Young said. “Any 30-year-old says ‘For the past couple years they’ve been this low, and I wasn’t paying attention before that.’”
Then, there are others worried that prices on homes haven’t bottomed out, Nothaft said, adding that there could be a lot of people with good income and savings who will come into the market once they’re confident that their home won’t lose value shortly after the ink is dry on their closing papers.
Of course, all of this assumes a person is able to get a mortgage to begin with. Households need a credit score of at least 700 these days to qualify for a conventional mortgage, up from 650 during the mid-2000s, according to a report from Capital Economics, an economic research consultancy. The tighter lending standards have locked out 13 million households from getting a mortgage, the firm reported.
But Walters said that for those who can do it, this one of the best times to buy. Read more: Now might be the best time ever to buy a home.
Like the stock market, it’s best to buy low and sell high: “The time to buy stock is when everyone hates them. The time to sell is when everyone at the barbecue is talking about them,” he said.

Private-Sector Payrolls Post Gains-Chart

2011-10-05T08:32:00.000-07:00

Private-sector payrolls increased 91,000 in September. Making modest gains, and up from 89,000 in August. This report provides insight to the U.S. Labor Department jobs report, which will be released on Friday. The largest gains came from small-businesses with employment rising by 60,000. Medium sized businesses saw an employment increase of 36,000 while large business employment had a decline of 5,000.

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ISM Index Increases - Indicates Expansion in Manufacturing

2011-10-03T08:45:00.000-07:00

The ISM Index (Institute for Supply Management) rose to 51.6% for September. This represents a 1% increase from the August reading of 50.6%. In this chart, you can see the 12-month high was reached in February of 2011, while the 12-month low occured last month in August. Readings above 50% indicate expansion in manufacturing. The 1% increase for September beat expectations of an unchanged reading.

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Chart - Initial Jobless Claims Week Ending 9/24/11

2011-09-29T08:24:00.000-07:00

Initial Jobless Claims Week Ending 9/24/11
Initial jobless claims dropped 37,000 for the week ending September 24th to 391,000. This represents the lowest level for jobless claims since April 2, when claims were 385,000. In this chart, you can see since that time, jobless claims have remained steadily at or above the key 400,000 indicator.

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Home Prices Rise in 17 out of 20 Cities

2011-09-27T08:01:00.000-07:00

This map (click below) displays the results of the Case-Shiller home price index for July 2011. Seventeen of the 20 cities in the index say home price increases. Denver remained flat, while Phoenix and Las Vegas has price decreases from June. Overall the 20 cities combined for an increase of .9 from June to July.

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August Housing Starts & Building Permits

2011-09-20T15:21:00.000-07:00

August Housing Starts and Building Permits
Housing starts for August dropped 5% to 571,000 as housing demand remains weak. A potential positive from today's report was building permits which were up 3.2% to 620,000. The highest mark for permits since January. Building permits are a future indicator of demand for new homes.

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Latest Unemployment Rates by State

2011-09-16T11:54:00.000-07:00

Mortgage Market Guide - Unemployment Rate

August Core CPI (Consumer Price Index) rises to 2.0%

2011-09-15T09:19:00.000-07:00

August Core CPI (Consumer Price Index) rises to 2.0%. This increase represents the upper-end of the Fed's threshold. The Consumer Price Index measures changes in the price level of consumer goods and services and provides a hugely important read on consumer inflation. Inflationary signs, as seen here, could put a dent in Bond prices and thus increase mortgage interest rates. Click below for the chart.

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Rates Hover Near Record Lows...

2011-08-04T10:56:00.000-07:00

Home loan rates are near the lowest they have ever been. Please click on the chart to see a larger version.

The State of the Housing Market: Stats & Quotes

2011-05-26T14:11:00.000-07:00

..."Good chance we'll see the bottom in terms of (home) sales and prices in 2011. That said, likely to see a flat line near the bottom for the next couple of years."...

The following stats and quotes were taken from a recent interview with Rick Sharga, one of the country's most frequently quoted experts on foreclosure, mortgage and real estate trends. This interview is provided by Mortgage Market Guide.

Foreclosure Activity:
-40-month low in April
-9% decrease from March
-34% decrease from a year ago
"Not a positive trend, but the result of delays"

Foreclosure Process Taking Longer:
2011: 400 days to execute a foreclosure
2010: 330 days to execute a foreclosure
2007: 150 days to execute a foreclosure
Result: Making the current situation look better than it is and the overhang is a continuing threat to the industry.

How Many Homeowners are Delinquent?
3.7 Million homeowners are 90+ days delinquent.

Reached Saturation Point:
900,000 - 1 Million REOs on bank books
But less than 30% are available for sale
Demand so weak it doesn't make sense to accelerate foreclosure proceedings on more homes when can't sell the properties on the books.

Modifications?
Not much improvement in loan modifications but increase in short sales.

Average Fannie Backed Loan Credit Score:
Today = 760
Prior = 713

Shadow Inventory:
High estimate = 7 million properties hitting market over next 2-3 years
More likely = 3-4 million properties hitting market over next 2-3 years
-600,000-700,000 REOs that will eventually come to market
-1.2 Million homes in foreclosure and less than 20% are currently listed, so that's another 800,000 or so properties that are likely to come to market as distressed properties
-3.7 Million delinquent homeowners
Impact: Keeps home building form taking place, which makes prices more stubbornly weak

Beyond MLS:
Over 80% of the properties listed in RealtyTrac database aren't listed for sale
Even when listed, not always identified as short sale or foreclosure

Need to work with a title company or database like RealtyTrac to check status

Good News?
-Indications that major banks selling portfolios of non-performing assets, rather than putting into foreclosure
-Usually this type of move is seen at or near the bottom of the market
-Indicates that a recovery might be in the offing

When Will We See the Bottom?
-Good chance we'll see the bottom in terms of sales and prices in 2011
-That said, likely to see a flat line near the bottom for the next couple of years

Mortgage Rule Overhaul May Push U.S. Home Loan Rates Above 8%

2011-05-10T09:54:00.000-07:00

I came accross this interesting article from Bloomberg. Currently, interest rates are at the lowest they've been in 2011.

Mortgage Rule Overhaul May Push U.S. Home Loan Rates Above 8%

By Kathleen M. Howley

May 10 (Bloomberg) -- The biggest government overhaul of the mortgage market since the 1930s, intended to prevent another foreclosure crisis, may further postpone a housing recovery by pushing loan rates for some borrowers above 8 percent.

Federal regulators want to create super-safe loans known as qualified residential mortgages, or QRMs, requiring 20 percent down payments, which could be packaged as securities and help revive the private mortgage market. Rates may rise by as much as

3 percentage points for borrowers who don’t qualify for a QRM, according to the Mortgage Bankers Association in Washington.

That would push the rate to 8.8 percent, based on the group’s forecast of a 5.8 percent average rate next year.

The government also plans to shrink the role of mortgage buyers Fannie Mae and Freddie Mac and make it harder for borrowers to get Federal Housing Administration-insured loans.

The combination may scuttle chances for a 2012 housing recovery.

“The marketplace could suffer a major shock if people get pushed into private mortgages that would have to meet the QRM standard,” said Edward Pinto, a resident fellow at the American Enterprise Institute in Washington and the former chief credit officer of Fannie Mae.

The home market, once a driver of economic growth, has been pummeled by foreclosures and job losses. After five years of tumbling prices, most economists expected housing to regain its footing next year, according to a survey by MacroMarkets LLC in Madison, New Jersey. Prices were projected to increase 1.8 percent in 2012, the first gain since 2006, based on the median of 97 estimates in a MacroMarkets poll taken before the proposed regulations were published in the Federal Register on April 29.

Softening Demand

Higher rates and stricter mortgage-lending standards may delay a housing recovery, said Susan Wachter, a professor of real estate and finance at the University of Pennsylvania’s Wharton School in Philadelphia. Even concern among potential buyers about the changes could soften demand, she said.

“Uncertainty impacts the confidence of buyers and drives down home prices,” Wachter said in an interview. “Homes are sold with a view for resale value, and that’s very dependent on the availability of mortgages.”

The new lending rules, proposed by the Federal Reserve, the Federal Deposit Insurance Corp. and four other government regulators, would take effect next year, pending a public comment period open through June 10 and a final vote. Higher down payments will reduce the likelihood of defaults because borrowers have more “skin in the game,” according to the regulators’ proposal.

Dodd-Frank

Regulators hope the new rules will boost demand from private investors for mortgage securities, said Sheila Bair, chairman of the FDIC. While the standards for a QRM are set by the government, lenders are free to design their own criteria for loans, subject to risk retention mandated by last year’s Dodd-Frank Act, which requires bond issuers to keep a 5 percent interest in the non-QRMs they securitize.

“The QRM requirement will not define the entire mortgage market, but only that segment that is exempt from risk retention,” Bair said at the March 29 FDIC board meeting at which the measure was approved. “Lenders can and will find ways to provide credit on more flexible terms.”

Exempting too many mortgages will reduce the number of lenders interested in serving the borrowers who don’t qualify for a QRM, Bair said. QRMs are designed to be a “small slice of the market,” she said.

While Fannie Mae and Freddie Mac, which are government owned and control 47 percent of the $11.4 trillion mortgage market, are exempted in the latest draft of the rules, they would be included if they leave government conservatorship.

About 70 percent of the loans acquired by Fannie Mae and Freddie Mac in 2009 didn’t meet QRM standards, according to the Federal Housing Finance Agency in Washington.

Higher Rates

Fixed rates may be as much as 3 percentage points higher for loans that don’t qualify as a QRM, according to the Mortgage Bankers Association.

The trade group forecasts a fixed mortgage rate of 5.8 percent for 2012, so adding 3 percentage points could push borrowing costs for some homebuyers to 8.8 percent, the highest since 1991 when it was 9.25 percent, according to Freddie Mac data. Home prices were rising in those days, gaining 5.2 percent from the previous year, with the median exceeding $100,000 for the first time, at $101,400.

Even more buyers may have to pay the higher rates because of the government’s plan to shrink Fannie Mae and Freddie Mac.

The companies, seized by regulators in 2008, are under a government mandate to shrink their portfolios by 10 percent a year. The mortgage buyers boosted fees and tightened loan requirements this year.

‘Sucker Punch’

Every 1 percentage point increase in rates excludes 4 million people from the housing market, according to an April 13 report issued jointly by the bankers’ group, the Center for Responsible Lending, the National Association of Realtors, the Community Mortgage Banking Project, the Mortgage Insurance Companies of America and the National Association of Home Builders.

“It’s going to be a sucker punch for home prices because you’re knocking so many people out of the market,” said Mark Goldman, a real estate professor at the University of San Diego in California. “It’s exactly what you don’t want to do.”

The QRM regulations come almost three years after a wave of home-loan defaults toppled Bear Stearns Cos. and Lehman Brothers Holdings Inc. and led to the collapse of banks such as Washington Mutual Inc., then one of the largest mortgage lenders. The U.S. foreclosure rate reached a record high last year, according to the Mortgage Bankers Association.

Debt Limit

Debt restrictions also will shrink the pool of people who can get mortgages, said Keith Gumbinger, vice president of HSH Associates, a loan-data firm in Pompton Plains, New Jersey. To qualify for a QRM, debt can’t exceed 36 percent of income, according to the proposal.

While that ratio was standard three decades ago, Americans have gotten used to carrying higher debt loads, Gumbinger said.

During the real estate boom, Fannie Mae and Freddie Mac allowed debt ratios above 40 percent, he said.

To meet the new limit, families would have to pay off credit cards, auto loans and other obligations while saving for a down payment. That will cut into the consumer spending that accounts for about 70 percent of the U.S. economy.

“People are in a pay-down-their-debt mode now, as a result of the recession,” Gumbinger said. “But it’s going to take a lot more reduction and a lot more savings to qualify for a QRM.”

Using the median household income and the current U.S.

savings rate, as measured by the Bureau of Economic Analysis, it would take the average saver about 16 years to accumulate a 20 percent down payment for a median-priced house, according to Bloomberg calculations.

'Stronger Market’

Cutting debt limits and requiring bigger down payments would make the economy more stable and reduce the likelihood of another housing meltdown, said Steven East, chief economist at Height Analytics, a Washington-based research firm. Credit that was “too cheap and too easy” led to the defaults that sent home prices tumbling, he said.

“In the short term, it would take the housing market longer to recover, but in the long term, we would have a much stronger market,” East said in an interview.

The remaking of the mortgage system comes on the heels of the government spending more than $1 trillion in the last two years to boost housing demand. The Federal Reserve bought $1.25 trillion of mortgage bonds in an effort to lift demand for properties by driving down fixed mortgage rates. Four months after the program’s conclusion in March 2010, home sales fell to an all-time low of 3.86 million at an annual pace, according to the National Association of Realtors.

Tax Credit

A homebuyer tax credit of up to $8,000 that began in January 2009 boosted sales by 4.9 percent that year, the only annual increase since the housing meltdown began. Last year, home sales dropped by 4.8 percent, the Chicago-based Realtors group said. The tax credit, which expired in April 2010, cost the government $16.2 billion in lost revenue, according to the Government Accountability Office.

“The economy is so tied to housing and to all the ancillary purchases that come from it, it doesn’t make any sense to roadblock people who want to get in and buy a house,” said David Shamansky, owner and loan broker at US Mortgages in Highlands Ranch, Colorado. “Especially when we spent so much money trying to encourage sales.”

For Related News and Information:

Stories on the U.S. housing market: STNI HOUSINGMKT Stories on mortgage delinquencies: STNI MORDEL Today’s top Bloomberg News real estate stories: TOPR Bloomberg housing and construction data: HSST Existing home prices: ETSLTOTL GP

--Editors: Christine Maurus, Rob Urban
To contact the reporter on this story:
Kathleen M. Howley in Boston at +1-617-210-4623 or kmhowley@bloomberg.net
To contact the editor responsible for this story:
Kara Wetzel at +1-212-617-5735 or
kwetzel@bloomberg.net

March Cheyenne Real Estate Sales Data

2011-04-25T10:18:00.000-07:00

Sales of homes in Cheyenne saw an increase in March 2011 compared to March 2010. Sales of city residential, rural homes and condos/townhomes increased from 117 total units in 2010 to 128 total units in 2011. The statistics also show that the inventory of homes currently on the market for sale is 391 and the average sales price for March was $181,633 (up from March 2010 of $166,649). This data was originally posted on 4/18/11 at the link below.

Please click here to visit the Cheyenne Board of Realtors to see the statistical report.

Is Your Home Equity Line Hurting Your Credit?

2011-03-21T08:43:00.000-07:00

This very interesting article is contained in this weeks MMG Weekly Update - to view the entire update click the MMG Weekly box on the right hand side of the blog or click here.

Home Equity Lines of Credit and Your Credit Score

What You Need to Know and Do

Credit reports have always been important, but they’ve grown even more important in recent years. Now more than ever, you need to make sure you understand what’s on your credit report - and you need to know what steps you can take to improve your score.

For example, did you know that a Home Equity Line of Credit (HELOC) can impact your credit score quite dramatically... and sometimes unfairly... depending on how it is reported?

Here’s What You Need to Know... and Do!

First, you need to know that HELOC’s are commonly reported by the three credit bureaus as revolving accounts. In reality however, they do not fall under the typical revolving terms, even though they are set up in the same way as a revolving account. That’s because HELOC’s are secured by an asset.

Here’s the Good News...

The Fair Credit Reporting act requires reporting agencies to report true and accurate information. So when a HELOC is reported as a revolving account, you can actually send a letter to the three credit bureaus asking them to change the type of account from "Revolving" to "Line of Credit" or "Other."

This way, the account will not be rated by the scoring system using the "Balance to Limit" ratio scenario - which can drop a credit score by as much as 75 points if the HELOC is maxed out to the limit of the available credit line.

A Final Word of Advice

If you do decide to send a letter, you should send it as a Certified Letter, along with a copy of the HELOC agreement. You may have to send the letters more than once, but persistence is the key to accomplishing a positive result with the bureaus.

This article was adapted from information provided by national credit expert Linda Ferrari, author of "THE BIG SCORE: Getting It and Keeping It, Buying Power for Life." Learn more and check out her credit resources at http://www.lindaferrari.com/

Wyoming Ranks #2 in U.S. for Well-Being on Recent Gallup Poll

2011-03-09T15:22:00.000-08:00

A recent poll conducted by Gallup ranked the states in terms of the following categories; Life Evaluation, Emotional Health, Physical Health, Work Environment, Heathly Behaviors, and Basic Access. Hawaii ranked #1 overall, Wyoming #2 and North Dakota #3.

Results are based on telephone interviews conducted as part of the Gallup-Healthways Well-Being Index survey Jan. 1-Dec. 31, 2010, with a random sample of 352,840 adults, aged 18 and older, living in all 50 U.S. states and the District of Columbia, selected using random-digit-dial sampling.

To view the entire results please follow this link:
http://www.gallup.com/poll/146288/Hawaii-No-Wellbeing-West-Virginia-Last.aspx?utm_source=tagrss&utm_medium=rss&utm_campaign=syndication&utm_term=Well-Being Index

January Cheyenne Residental Sales Statistics

2011-02-24T15:47:00.000-08:00

Sales of homes in Cheyenne saw an increase in January 2011 compared to January 2010. Sales of city residential, rural homes and condos/townhomes increased from 59 total units in 2010 to 74 total units in 2011. The statistics also show that the inventory of homes currently on the market for sale is 412 and the average sales price for January was $167,186 (up from January 2010 of $159,157).
Please click here to visit the Cheyenne Board of Realtors to see these statistics.

FHA 203k/Spruce Up/WCDA Rehabilitation Financing

2011-02-08T12:49:00.000-08:00

Standard financing requires all repairs to be completed prior to closing (unless outside items are escrowed due to weather related delays, e.g. roof can't be completed). However, Rehabilitation financing allows you to purchase a property and finance repairs into the loan amount. The repairs can then be completed after closing. Please click on the picture to print this fact sheet about this type of financing. We are one of only a few lenders in the state of Wyoming providing this type of financing.

Housing Markets That Will Be Strongest by 2014

2011-02-05T20:23:00.000-08:00

Wyoming ranked #9 in the nation in this Bloomberg article that was published 8/4/2010. Wyoming is forecasted to have a 23.7% four-year home price appreciation which compares to the nationwide overall home price appreciation forecast of 7.2% by 2014. Historically, Wyoming has a very stable housing market in part due to its low unemployment rate. Wyoming is currently (as of 1/25/2011) tied for 7th for the lowest unemployment rate in the nation at 6.4% compared to the national average of 9.4% (http://www.bls.gov/)
http://realestate.yahoo.com/promo/housing-markets-that-will-be-strongest-by-2014.html
By Venessa Wong, Bloomberg Businessweek

Loan Checklist

2011-02-02T11:06:00.000-08:00

Please supply the following items at your initial loan application or as soon as possible in order for us to proceed with your mortgage financing. We do not need original documents. Please fax or email them to us or drop them off at our office. We would be happy to make copies for you at our office.

*Please click the picture to the left for a printable version of the checklist

•Paystub(s) for the most current 30-day period (must show name, company name, current earnings and YTD earnings)

•Past 2 years W-2 forms (all employment for the past 2 years)

•Self-employed: complete personal and business tax returns for the past 2 years (all schedules included, signed)

•WCDA Loan: Complete tax returns for the previous 3 years

•Bank statements and all other assets for the most current 60 days (must contain all pages, name and account number. If obtained at a bank branch, they must be stamped and signed by the teller)

•Landlord(s) name, address and phone number for the last two years, if applicable

•Bankruptcy papers, including discharge papers, if applicable

•Divorce decree(s), if applicable

•Child support order and custody information, if applicable

•Homeowners Insurance company, address and phone number (if known at this time)

•Proof of Service (VA)

•DD214, Statement of Service or Points Statement (VA)

•Photocopy of Driver's License

Cheyenne Real Estate Market Statistics

2010-08-06T10:51:00.000-07:00

The Cheyenne Board of Realtors publishes real estate sales data on a monthly basis. This data is available publicly at http://www.cheyennerealtors.com/boardinfo/statistics.html

Extension of the Homebuyer Tax Credit...

2010-06-22T11:46:00.000-07:00

The US Senate approved an amendment yesterday to extend the closing deadline for the Homebuyer Tax Credit to September 30th for contracts signed by April 30th. The tax credit provision is part of the jobs and tax package that both chambers must still vote on before it becomes law. If passed, it would mean homebuyers in contract by April 30th, will now have until Sept 30th to close, instead of the prior deadline of June 30th.

New Office Location...

2010-05-17T10:20:00.001-07:00

To make room for corporate expansion our mortgage origination operations have moved to a new location. Please visit us anytime! We are on the first floor below the Brookside Dental office (south of Burns Insurance and between the Property Exchange and Jonah Bank buildings)

Wallick & Volk Mortgage Origination
229 Storey Blvd, Suite B
Cheyenne, WY 82009

Phone: 307-635-3130
Fax: 307-638-9312

Map

Even George Washington's Interest Rate Was Higher...200 Year Interest Rate Chart

2010-01-26T08:38:00.000-08:00

Click on the image below to enlarge this great chart tracking interest rates for the past 200 years. As one can see, interest rates are still very low!

False Illusions and What You Need to Know

2009-12-23T08:24:00.000-08:00

Homebuyer Alert…
For prospective homebuyers who are on the fence about making a home purchase, the next few months represent a countdown of sorts for two reasons.

The first of these, the coming expiration of huge tax incentives, may be a bit more obvious to most borrowers. April 30, 2010 is the last day to enter into a home purchase contract and still potentially qualify for a federal income tax credit of up to $8,000 for first-time homebuyers and up to $6,500 for repeat homebuyers. The credit can be claimed only on contracts that close by June 30, 2010.

Secondly, beyond the waning benefit of the Federal income tax incentive, another form of stimulus will soon disappear, as the Federal Reserve winds down a program that has been keeping home loan rates artificially low.

Rate Alert…
The lowest rates of 2009 were driven down to their attractive levels because of the Fed’s Mortgage Backed Securities (MBS) purchase program. Home loan rates have an inverse relationship with the value of MBS. When these securities trade higher on the market, rates move lower and vice-versa. So when the Fed originally agreed to be a big buyer, it helped provide a market for MBS, which helped keep prices high and, as a result, helped push home loan rates low. And while the Fed continues that program through the end of March 2010, the reality is that the Fed‘s “extension” was really more of a rationing intended to prevent home loan rates from spiking as the program is phased out. It’s sort of like weaning the market off of its life-saving treatment instead of forcing it to go cold turkey. Already, some in the media have mistakenly reported the extension of the program through March as good news, telling consumers that rates will continue to decline, and remain low into the spring. This gives a false sense of security that homebuyers and refinancers simply cannot afford.

The problem is…
Those reports do not accurately report what’s going on or where rates are really headed. That can have a very costly impact on consumers who may miss out on historically low rates if they listen to these media outlets. Here’s what’s really going on…In May 2009, the Federal Reserve's purchases of MBS peaked at an average of $25 Billion per week. As of November, the average weekly purchases dropped down to $14 Billion. At the end of November, the Fed had already used over 80% of the allocated funds for MBS, meaning less than 20% remained to be used over four months. Making the problem worse is that the Fed now has less money available to purchase MBS while at the same time, the supply of these securities has increased as a result of refinance and purchase activity that was triggered by lower rates.

Why is that important?
As the Fed now has fewer funds to last through the remaining months of the program, its ability to keep rates low will wane. As the Fed's program winds down and ends, we’ll likely see two things happen. First, we will probably see higher levels of volatility—with rates sometimes shifting dramatically in the middle of the day. That means it is more important than ever for buyers to work with a knowledgeable mortgage professional who has a finger on the pulse of the market at all times and can provide trusted, proven advice. Second, since MBS will have less support from the Fed, rates are likely to rise over time. In short, while rates are still very good, they may not be for long.

What should you do to protect yourself?
First and foremost, work with a knowledgeable mortgage originator who studies and monitors the market. Second, don’t be fooled by media stories that only report the headlines and don’t understand the underlying implications of the Fed’s actions. If you ever hear something in the news but aren’t sure what it means to your situation, feel free to call or email us for in-depth answers and advice. Finally, if you haven't yet explored how the current rate environment might benefit you or someone you know, let’s arrange a time to sit down and discuss your unique situation as well as your short- and long-term goals. Remember, rates are still very good, but they may not be for long.

$8000 Tax Credit

2009-11-07T14:00:00.000-08:00

We are very pleased to report to you that the House of Representatives passed legislation to extend and expand the current first-time homebuyer tax credit. The House action follows the Senate's approval on Wednesday (11/4) and President Obama signed the bill this morning (11/6). The bill extends the current $8,000 first time homebuyer tax credit (which was due to expire at the end of November) through April, 2010. It also includes a tax credit of up to $6,500 for qualified move up buyers who have lived in their primary residence for 5 consecutive years during the last 8 years. It also increases the borrower income limits for both credits to $125,000 for individuals and $225,000 for couples. Homebuyers will qualify for the full credit as long as they have entered a binding contract by April 30, 2010 and they close the transaction by June 30, 2010. The tax credit is limited to homes with a purchase price of $800,000 and below.

The bill also includes anti-fraud language that gives the IRS the authority to do greater oversight during the processing of the return. In addition, the legislation waives the recapture provision for members of the armed forces who are called on extended duty. These members of our military and uniformed services, who are out of the country for at least 90 days, will also be eligible to use the tax credit upon their return through April 30, 2011.

The extension and expansion of this tax credit is a major legislative victory for everyone who was working to educate policymakers on the critical role the credit has played in stabilizing the housing and mortgage markets.

Wallick & Volk has a long history of working with first-time homebuyers, making us uniquely qualified to help you with your home purchase. Please contact the Bradley Team should you have any questions about taking advantage of this great tax credit.

The Importance of Homeowners Insurance

2009-10-20T15:54:00.000-07:00

Links to Homeowner's Insurance Companies:
Farmers
Allstate
Farm Bureau

Obtaining homeowners insurance for your home purchase is critical to a successful and smooth mortgage experience. Why? In most cases (95+% of the time and on all FHA, VA, and USDA loan types), homeowners insurance is required to be escrowed as part of your financing. In order for the monthly payment, preliminary and final figures to be developed, an insurance quote/binder are required.

The following steps will help guide you:

Obtain homeowners insurance quotes as soon as possible. When calling, the insurance agent will ask you questions about you, your spouse and the house. Be certain to have the information about the house readily available (square footage, number of rooms, it is a basement or crawl space, the year the home was built, type of roof, does it have a security system etc.) *****Keep in mind that the amount of homeowners insurance coverage that is required for the mortgage may be higher than your sales price. When calling your agent be certain to have your loan amount handy.
Decide what company you will be using and call them to tell them that you will be using their quote. This is an important step in order to take the quote to an actual policy status. In most cases, the agent will need your confirmation that you will be using them before the agent can send us a copy of the binder.
Call us to let us know that you have chosen your agent - please provide us with their name and phone number. This is also a critical step as the agent may not call us immediately. This will enable us to be proactive with obtaining a copy of the binder.

Please let us know if you have any questions or need to be referred to a great insurance agent.
WCDA Clients: Please keep in mind that WCDA allows up to a $1000 deductible on ALL perils. Some major insurance carriers do not allow a $1000 deductible on wind and hail (instead they use a 1% deductible). WCDA will not accept insurance with a 1% deductible so be certain to confirm your deductible when calling for quotes. Many home insurance claims in Wyoming are for wind/hail. Thus, WCDA wants to be certain that the clients of the mortages they service can afford their deductible. Please keep in mind that a $500 is recommended.

Downpayment Gifts

2009-09-24T08:24:00.000-07:00

Gifts from family members, relatives, or close friends with clearly defined and documented interests in the borrower are acceptable in most loan situations. The following items are required in order for the gift to be acceptable:

1) Lender Gift Letter (click the image to the left for a blank copy of the gift letter) - signed by donor and borrower which includes the donor's information and states that no repayment of the gift is expected or implied

2) Borrower Deposit Slip or Bank Statement - documenting the funds going into the borrower's bank account (must include the borrower's name and account number)

3) Donor Bank Statement - documents the funds coming out of the donor's bank account (must include all pages and show the donor's name on the account)

How much can a donor give to a borrower? In general, the maximum gift is 6% of the sales price (e.g. $150,000 sale price = $9,000 maximum gift) for most loan situations.
If your downpayment funds are coming from a gift, it is imperative that you notify us as soon as possible to ensure that it is documented properly. Failure to notify us may result in your closing being delayed. Please call or email should you need a gift letter.
Please note that this information applies to FHA mortgages. Please call to confirm the gift procedures should you be utilizing Conventional, VA, or other financing.

WCDA Homebuyer Education

2009-08-24T15:46:00.000-07:00

If you are utilizing WCDA financing, there are two components of the WCDA homebuyer education requirement to consider.

1. WCDA Class: The class is required prior to closing. The class can be completed online at http://ehomeamerica.org/whn-wcda. The online class requires a fee payable via debit or credit card. Please note that the online class takes between 2-8 hours to complete. If needed, we can arrange for you to use a system at our office to complete the course. Upon completion of the course you will be emailed a certificate of completion along with instructions for the one-on-one course below. Please forward this certificate to us or fax us a copy. Please note that as of 12/30/2009 there is no longer an in-person class available. The online class is the only option available at this time.

2. One-On-One Counseling: The over-the-phone counseling is also required prior to closing. You must register for this phone call by calling 307-472-5843 or 866-652-4946 and you must complete a handbook prior to the counseling session (the handbook is emailed to you upon completion of the online class). Upon completion of the counseling, you will be emailed a certificate of completion. Please forward this second certificate to us or fax us a copy.

More information about homebuyer education can be found on WCDA's website at this link:
http://www.wyomingcda.com/index.php?option=com_content&task=view&id=33&Itemid=50
We recommend that homebuyers complete the WCDA Class and one-on-one counseling as soon as they begin the homebuying process but no later than 10 days prior to closing.

The Don'ts of Mortgage Financing

2009-08-24T14:52:00.000-07:00

Purchasing a home is an extremely complex process that requires the coordination of many different people and processes. In order to ensure a smooth closing, there are certain things that a homebuyer should not do during the mortgage process and prior to closing. By following this list, you can avoid some of the pitfalls that have derailed some closings in the past. Believe me, we aren’t trying to make your life more stressful by adding these restrictions; we are just trying to give you the best possible chance for a smooth mortgage transaction and successful closing. When in doubt, contact us first!

1. Don’t change your employment status or employer prior to closing
2. Don’t make any major purchases such as cars, furniture, home theater, vacations,appliances etc. prior to closing
3. Don’t increase your credit card debt or miss payments prior to closing
4. Don’t change bank accounts or make large deposits other than regularly scheduled paycheck deposits prior to closing
5. Don’t apply for a credit card, co-sign a loan or make a credit inquiry prior to closing
6. Don’t spend money you have set aside for closing prior to closing
7. Don’t delay in providing all requested paperwork as soon as possible
8. Don’t delay in setting up homeowner’s insurance immediately
9. Don’t forget to tell us if you are receiving a gift that will be used for your downpayment or closing costs
10. Don’t forget to attend the WCDA class (if applicable) and provide us a copy of your Certificate of Completion