There are all sorts of folks and businesses who say they can handle your home purchase loan; your credit union, a huge mega bank, a mortgage broker and so on. Gone are the days when most anyone could get a home loan. The underwriting guidelines and meticulous paper trail needed for a loan are incredible. Yes, your lender does need to know what that $150 deposit was into your account last month - even if it was birthday money from your parents. No, don't get pissy about it, these are the lenders who overlooked all that stuff in the past and got stung by it.
There are a huge variety of loan programs, for different down payments amounts, credit scores, interest rates and so on. And all have slightly different underwriting requirements. A good loan officer knows these specifics and stays on top of changes to programs. A not so good loan officer looses track.
So why does that matter? It can be the difference between you getting your loan or not, or missing the close date or not and being at the grace of the seller to extend the close date. It can cost your more money in fees and points. It can be the difference in you being able to buy your house, or not.
Here are a few examples of the kinds of issues we see come up in the lending on real estate purchases.
I had a buyer client withdrawing money from an IRA and receiving gift funds for her down payment and closing costs. She and I both asked the loan officer ahead of time if there was any special way the money needed to be handled. No, no special anything. This was communicated in writing an d by phone. So imagine our dismay when THE DAY BEFORE SHE WAS TO HAVE CLOSED ON HER NEW HOME, we were told underwriting didn't like how the funds had been co-mingled. She needed to withdraw even more money from the IRA and handle it a certain way. Thankfully she had the additional money, and thankfully the seller was willing to delay closing by the two necessary weeks, at no charge to the buyer. It could easily have happened that a seller would demand an increase in the sale price to extend closing, or the buyer could have lost the lock on an interest rate, forcing a higher interest rate, or the seller could have refuse to grant the extension; losing the buyer the house and the money she had spent on inspections and appraisal. The loan officer, in this case, either should have known there was a special way the funds needed to be handled, or should have known to ask. I knew to ask, and even my asking should have prompted her to check with the underwriters before answering our query back at the beginning of the transaction.
A few years ago, my husband, yes, my husband, refinanced our house through Wells Fargo. Their refinance office was in Florida, and the whole thing was done primarily by email. The folks in Florida, a state littered with subdivisions, kept asking for the C, C & R's for the subdivision in which we live. There's no such thing at SE 26th and Clinton. In the absence of C, C & R's, they then required a survey of the property, because, if we didn't live in a subdivision, then clearly we must be out in the country. Round and round we went, convincing them neither case applied. This, in the day and age of google earth and all.
The whole loan process is a series of data requests and performance requirements. This we know. And if those requirements and requests are timely, that is, well in advance of closing, they are reasonable and a part of the process. Arriving in the eleventh hour, and delaying closing can be what makes them seem unreasonable. Many lenders collect all the data, and only submit the file to underwriting at the end of the transaction, in advance of preparing the loan documents for closing. The files of a loan officer inexperienced and unknowledgeable about the idiosyncrasies of particular loan products are often kicked out of underwriting, right before closing, with a myriad of requests that can take days, or even weeks to fulfill.
A "good" lender is one who is familiar with our local properties and customs (see above about subdivisions), who knows the different loan programs and stays on top of changes, and who communicates well, and promptly. While I prefer loan officers who don't work for the large banks as they tend to be a bit more nimble and less encumbered by a behemoth process, I have seen a few very good lenders from large, national banks. But 1-800- get-loan, or some such, scares me. All parties in the transaction need to be able to talk to a specific person, who's job it is to work on your loan. A loan number, and a phone or email answered by a general staff person at the institution doesn't bode well for getting your loan done on time, and to the terms to which you think you have agreed.
I'm glad to give suggestions for lenders, whether you are purchasing or even just re-financing. Get in touch: leslievjones@gmail.com or 503-312-8038
Friday, October 16, 2015
Friday, September 18, 2015
Fast and Decisive
Last year, we were quite busy, and having a banner year. Somehow, this year, we put 23.8% more transactions together in August 2015 than in 2014. How did we do that? Primarily, I think with more decisive buyers and sellers.
More decisive buyers and sellers also contributed to our still low inventory (1.9 months as compared to 3.0 months in August 2014) and to our quicker market time; 41 days as compared to 63 days in August 2014.
Though not a scientific sample, the great majority of my buyer clients this year, actually looked at fewer than ten houses before making their purchase. And some as few as four. But...before you jump to conclusions, they all did TONS of online research in advance of and during our in person shopping. So that is the other part of what has changed...technology and research.
And, of course, prices are up. The year to date median price is $305,000, compared with $285,000 year to date in August 2014.
We are though, seeing some seasonal slowing, and even priced reductions. Some of the sales with prices driven high by emotional multiple offers are now closing. I'm not sure those houses would have sold at those high prices, had we actually priced them there to begin with.
So for fall, the market will continue at a fast pace, with more decisive buyers and sellers (fall is NOT a time for looky loos). While interest rate increases may occur, I doubt we'll see anything drastic. Remember, we had a boom market with interest rates at five and six percent.
Let me know if you have questions, or are feeling decisive :) leslievjones@gmail.com 503-312-8038
See the full RMLS report
More decisive buyers and sellers also contributed to our still low inventory (1.9 months as compared to 3.0 months in August 2014) and to our quicker market time; 41 days as compared to 63 days in August 2014.
Though not a scientific sample, the great majority of my buyer clients this year, actually looked at fewer than ten houses before making their purchase. And some as few as four. But...before you jump to conclusions, they all did TONS of online research in advance of and during our in person shopping. So that is the other part of what has changed...technology and research.
And, of course, prices are up. The year to date median price is $305,000, compared with $285,000 year to date in August 2014.
We are though, seeing some seasonal slowing, and even priced reductions. Some of the sales with prices driven high by emotional multiple offers are now closing. I'm not sure those houses would have sold at those high prices, had we actually priced them there to begin with.
So for fall, the market will continue at a fast pace, with more decisive buyers and sellers (fall is NOT a time for looky loos). While interest rate increases may occur, I doubt we'll see anything drastic. Remember, we had a boom market with interest rates at five and six percent.
Let me know if you have questions, or are feeling decisive :) leslievjones@gmail.com 503-312-8038
See the full RMLS report
Wednesday, September 9, 2015
Songwriting with Soldiers
Not a real estate post. I'm just back from a great trip with Roots on the Rails. Sort of a moving concert to amazing places with a bunch of best friends you've never met before.
As always, there were incredible musicians on this trip. One musician, in particular, has been working on a project that really grabbed me. Mary Gauthier, along with several other noted song writers, has been working with soldiers, talking with them about their experiences and putting their word into song.
The Songwriting with Soldiers website's description of the project, " The words of our participants, put to melody and rhyme, tell of combat, loss, joy and pride. The songs convey a deep sense of what it means to serve, and the struggles our veterans face upon returning home. The soldiers talk, The songwriters listen. Together they create the songs."
Mary Gauthier played a few of these songs on the trip, and shared the stories of the soldiers with whom she had written. The songs and stories were beyond touching, and had the group of us wiping away our tears.
I'm hoping you'll check out Songwriting for Soldiers, and consider supporting their work.
As always, there were incredible musicians on this trip. One musician, in particular, has been working on a project that really grabbed me. Mary Gauthier, along with several other noted song writers, has been working with soldiers, talking with them about their experiences and putting their word into song.
The Songwriting with Soldiers website's description of the project, " The words of our participants, put to melody and rhyme, tell of combat, loss, joy and pride. The songs convey a deep sense of what it means to serve, and the struggles our veterans face upon returning home. The soldiers talk, The songwriters listen. Together they create the songs."
Mary Gauthier played a few of these songs on the trip, and shared the stories of the soldiers with whom she had written. The songs and stories were beyond touching, and had the group of us wiping away our tears.
I'm hoping you'll check out Songwriting for Soldiers, and consider supporting their work.
Tuesday, September 1, 2015
Is Fall the time to buy (and sell)?
Many think spring is the "best" time to transact real estate. And while spring isn't a bad time, I favor fall for a variety of reasons. First off, I love an under dog. Poor maligned fall :)
Both buyers and sellers in the fall market are ready to get down to business,and get it done. Fall is not a looky loo, real estate as entertainment time of the year. Fall is about efficiency. Owner occupants or investors; most everyone wants to get it done by the holidays, or the end of the calendar year.
Sellers who did not get their property sold in the busier spring, are often ready to get down to business and may make repairs and concessions they might not have agreed to earlier in the year.
There tend to be fewer buyers in the fall market as many are busy with back to school activities, and even schooling of their own. So buyers can have more choices in the fall.
Our listing inventory bumped up in the late summer, and I expect we'll see that true for September and October.
AND, interest rates remain reasonable low, even though the financial markets are acting as if the Fed has already raised them sky high.
So, ready and willing sellers, fewer buyers, more houses, and lower interest rates. What's not to like?
And sellers, don't worry that you missed the mythical busy season. You don't need, or want 21 offers on your property. You'll probably still get a few offers, keeping things competitive. And really, you only need one good offer.
Call, email or text with questions about the fall market. 503-312-8038 leslievjones@gmail.com
Both buyers and sellers in the fall market are ready to get down to business,and get it done. Fall is not a looky loo, real estate as entertainment time of the year. Fall is about efficiency. Owner occupants or investors; most everyone wants to get it done by the holidays, or the end of the calendar year.
Sellers who did not get their property sold in the busier spring, are often ready to get down to business and may make repairs and concessions they might not have agreed to earlier in the year.
There tend to be fewer buyers in the fall market as many are busy with back to school activities, and even schooling of their own. So buyers can have more choices in the fall.
Our listing inventory bumped up in the late summer, and I expect we'll see that true for September and October.
AND, interest rates remain reasonable low, even though the financial markets are acting as if the Fed has already raised them sky high.
So, ready and willing sellers, fewer buyers, more houses, and lower interest rates. What's not to like?
And sellers, don't worry that you missed the mythical busy season. You don't need, or want 21 offers on your property. You'll probably still get a few offers, keeping things competitive. And really, you only need one good offer.
Call, email or text with questions about the fall market. 503-312-8038 leslievjones@gmail.com
Wednesday, August 26, 2015
Cat Houses - for felines, that is
I've written in the past about catios, those enclosed areas giving cats some outside space, safe from predators, cars and the like.
Catios come in many shapes and sizes. many are owner designed and built. Some contractors have gotten in the game, identifying a niche. A custom catio can be quite expensive.
An enterprising builder out of Petaluma, California has put together a series of kits and accessories for catios These kits are designed to attach to your house, with the cats accessing through a window. Free standing units are also available.
My friend, client and pet sitter/dog walker extraordinaire, Renee Stilson, just got one for her cats. Lucky cats, they are. Here are a few pictures of a catio in action.
While I'm sure there are no statistics yet, I'd think, if properly built and situated, a catio could even add value to your home. Hmm.
If you are in need of a fabulous pet sitter, Renee, though her company, Home Sweet Home Pet Sitting provides professional, caring and compassionate pet sitting and dog walking.
I've got plenty more pictures and resources about catios, and would be glad to answer questions. leslievjones@gmail.com, 503-312-8038.
Catios come in many shapes and sizes. many are owner designed and built. Some contractors have gotten in the game, identifying a niche. A custom catio can be quite expensive.
An enterprising builder out of Petaluma, California has put together a series of kits and accessories for catios These kits are designed to attach to your house, with the cats accessing through a window. Free standing units are also available.
My friend, client and pet sitter/dog walker extraordinaire, Renee Stilson, just got one for her cats. Lucky cats, they are. Here are a few pictures of a catio in action.
 |
| the kit |
 |
| work in progress |
 |
| the finished product |
 |
| catio access |
While I'm sure there are no statistics yet, I'd think, if properly built and situated, a catio could even add value to your home. Hmm.
If you are in need of a fabulous pet sitter, Renee, though her company, Home Sweet Home Pet Sitting provides professional, caring and compassionate pet sitting and dog walking.
I've got plenty more pictures and resources about catios, and would be glad to answer questions. leslievjones@gmail.com, 503-312-8038.
Tuesday, August 18, 2015
Portland Market Stats
The Regional Multiple Listing Service released the numbers for July 2015 last week. There are a few items to note.
Inventory remains quite low. At our current rate of sales, it would only take us 1.7 months to sell all the homes currently on the market. This is for the whole Portland metro area. In Portland's close-in neighborhoods, inventory continues to be a real challenge. In the 97214 zip code, there are currently 19 houses on the market, ranging from $389,900 to $825,000, with a median price of $660,000. And in the 97232 zip code, there are currently 11 houses on the market, ranging from $349,000 to $849,000, at a median price of $669,950.
With short inventory comes shorter market times. In July, houses that closed had been on the market an average of 45 days, compared to 57 days in 2014. In Portland's east side neighborhoods we are seeing market times of 23 days in North Portland, 25 days in NE Portland and 32 days in SE Portland. These market times are from the time a listing becomes active in RMLS, until an offer is accepted and the listing status becomes pending.
We're doing a pretty large volume of business. July 2015 had the most closings of any July on record, with 3452 closings, up 28% from July 2014. Wow.
We're still seeing plenty of buyers entering the market as we head toward fall, and usually see a flurry of activity as the holidays draw near. If you've been thinking of buying or selling, there is still time to get it done before the end of the year. Get in touch and I'd be glad to outline first steps. leslievjones@gmail.com 503-312-8038
Read the full Portland report.
Inventory remains quite low. At our current rate of sales, it would only take us 1.7 months to sell all the homes currently on the market. This is for the whole Portland metro area. In Portland's close-in neighborhoods, inventory continues to be a real challenge. In the 97214 zip code, there are currently 19 houses on the market, ranging from $389,900 to $825,000, with a median price of $660,000. And in the 97232 zip code, there are currently 11 houses on the market, ranging from $349,000 to $849,000, at a median price of $669,950.
With short inventory comes shorter market times. In July, houses that closed had been on the market an average of 45 days, compared to 57 days in 2014. In Portland's east side neighborhoods we are seeing market times of 23 days in North Portland, 25 days in NE Portland and 32 days in SE Portland. These market times are from the time a listing becomes active in RMLS, until an offer is accepted and the listing status becomes pending.
We're doing a pretty large volume of business. July 2015 had the most closings of any July on record, with 3452 closings, up 28% from July 2014. Wow.
We're still seeing plenty of buyers entering the market as we head toward fall, and usually see a flurry of activity as the holidays draw near. If you've been thinking of buying or selling, there is still time to get it done before the end of the year. Get in touch and I'd be glad to outline first steps. leslievjones@gmail.com 503-312-8038
Read the full Portland report.
Friday, July 31, 2015
Legal Marijuana and Real Estate
Oregon's new marijuana laws have created a bit of a legal quagmire, including the real estate industry. Pre-existing medical marijuana laws and regulations, marijuana legalization for personal use and federal marijuana laws ( as in marijuana is considering a schedule I substance along with heroin) make navigating legal liabilities and disclosure responsibilities a mine field.
Meanwhile, on the ground, we in the Portland real estate market are approached daily by folks wanting to purchase or lease space to open a dispensary or develop a grow operation. And, in selling, we often come across properties that have pretty obviously been used as grow operations.
First, and important to know: the federal government's RICO laws and classification of marijuana as a schedule I substance, make properties involved in manufacture or distribution, vulnerable to forfeiture. And forfeiture is one of these situations where one must prove innocence, rather the usual standard of innocent until proven guilty. AND, transfer of title, (selling the property) does not remove the risk of forfeiture. Ack!
Properties that have been used as grow operations can have certain types of damage and contamination of which one should be careful. Excessive watering and humidity can lead to mold, fertilizers and pesticides can have lasting contamination effects and often electrical wiring has been added to and illegally altered. Whether we are representing buyers or sellers, disclosure and discovery of these issues are important. Of course when disclosed, does the property become vulnerable to federal forfeiture as mentioned above?
Now, in general, if folks are making efforts to comply with state marijuana regulations, the risk of federal repercussions is low. But it is important as real estate professionals that we inform our clients of the risks, as a part of their decision making process.
Currently 23 states have some sort of legal marijuana laws and regulations. Is that close to a tipping point where legislation in the remaining states will happen quickly? Or will the upcoming presidential election bring a conservative backlash as recently threatened by Donald Trump?
Though I can answer some questions on this topic, Marjorie Elken, with Zupancic Rathbone Law Group, P.C. (who gave a great presentations at our office recently) has focused an amount of her practice on these some of these marijuana issues.
Meanwhile, on the ground, we in the Portland real estate market are approached daily by folks wanting to purchase or lease space to open a dispensary or develop a grow operation. And, in selling, we often come across properties that have pretty obviously been used as grow operations.
First, and important to know: the federal government's RICO laws and classification of marijuana as a schedule I substance, make properties involved in manufacture or distribution, vulnerable to forfeiture. And forfeiture is one of these situations where one must prove innocence, rather the usual standard of innocent until proven guilty. AND, transfer of title, (selling the property) does not remove the risk of forfeiture. Ack!
Properties that have been used as grow operations can have certain types of damage and contamination of which one should be careful. Excessive watering and humidity can lead to mold, fertilizers and pesticides can have lasting contamination effects and often electrical wiring has been added to and illegally altered. Whether we are representing buyers or sellers, disclosure and discovery of these issues are important. Of course when disclosed, does the property become vulnerable to federal forfeiture as mentioned above?
Now, in general, if folks are making efforts to comply with state marijuana regulations, the risk of federal repercussions is low. But it is important as real estate professionals that we inform our clients of the risks, as a part of their decision making process.
Currently 23 states have some sort of legal marijuana laws and regulations. Is that close to a tipping point where legislation in the remaining states will happen quickly? Or will the upcoming presidential election bring a conservative backlash as recently threatened by Donald Trump?
Though I can answer some questions on this topic, Marjorie Elken, with Zupancic Rathbone Law Group, P.C. (who gave a great presentations at our office recently) has focused an amount of her practice on these some of these marijuana issues.
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