Entries from February 2008
Celebrate the anniversary of the founding of Fort Collins, Colorado from March 1 through March 14 with the Great Plates of Downtown event. The City of Fort Collins was founded in 1868 and over 20 participating restaurants will offer dining specials at the price of $18.68 but does not include tax or tip.
Print a full menu of the specials from the participating restaurants.
For more information, call 970-484-6500 or visit www.downtownfortcollins.com.
Also, a food drive to benefit the Food Bank of Larimer County will be held March 7 through March 14 in Old Town near the corner of College and Mountain Avenues. For a donation of 3 canned food items or $5 cash, you will be entered to win one of five $100 downtown shopping sprees.
Categories: Northern Colorado General
Tagged: Fort Collins, Great Plates of Downtown, Larimer County Food Bank
As a homeowner or home buyer, would you be interested in receiving up to the minute graphical reports to answer questions such as these?
- What is the supply of unsold homes in my neighborhood?
- How fast are homes selling right now?
- How do actual selling prices compare to listing prices in my area?
- What are the schools like in a particular part of Fort Collins, Loveland, Windsor or Colorado in general?
- Where can I find community information on cities and towns of Northern Colorado?
- How do I get more for the money in a changing market?
These are all important questions for home buyers and home sellers. There is a great need for current, up to the minute real estate information and here it is at your fingertips.
If you live in Colorado, especially Northern Colorado and my primary service areas of Fort Collins, Loveland, Windsor and Greeley, and are interested in keeping an eye on the real estate market, even if you don’t plan on moving, then click on www.MyHomeMarketSnapshot.com to get your free, personalized Market Snapshot.
There is no obligation nor hassle just lots of important and relevant information to keep abreast of our changing real estate market. Feel free to pass this blog and Market Snapshot information along to friends or family who may be considering learning more about the Colorado real estate market.
If you are considering selling your Northern Colorado home then take a look at my marketing strategy to get any home sold in our real estate market.
Categories: Northern Colorado Real Estate
Tagged: buyers, community info, Fort Collins, Greeley, Loveland, market snapshot, Northern Colorado, real estate market, school info, sellers, Windsor, www.MyHomeMarketSnapshot.com
Categories: Northern Colorado Real Estate
Tagged: Colorado, Northern Colorado, Fort Collins, Real Estate, Fort Collins realtor, Loveland, Windsor, 10 steps to homeownership, www.SearchFortCollinsMLS.com, Mike@MikeMalvey.com, real estate team
What’s Next?
You’ve done it. You’ve looked at properties, made an offer, obtained financing and gone to closing. The home is yours. Is there any more to the homebuying process?
Whether you’re a first-time buyer or a repeat buyer, there are several more steps you’ll want to take.
Those papers you received at settlement are extremely valuable, so hold on to them! In the short-term they can help establish tax deductions for the year in which the property was purchased. In the future, such papers will be important for tax purposes when the property is sold, and in some cases, for calculating estate taxes.
Also at closing, determine the status of the utilities required by the home, items such as water, sewage, gas, electric and oil service. You want utility bills to be paid in full by owners as of closing and you also want services transferred to your name for billing. Usually such transfers can be done without turning off utilities. REALTORS® can provide contact numbers and related information.
About two weeks after closing, contact your local property records office and confirm that your deed has been officially recorded. Such records are public notices that show your interest in the property.
Moving in
It is generally understood that sellers will leave homes “broom clean” when moving out. This expression does not mean “vacuumed” or “spotless.” Broom clean makes sense because it means the house is ready to be painted and cleaned.
Your home, your money
For most owners a home is the largest single asset they hold, so it makes sense to protect that asset.
Many owners make a photo or video record of the home and their possessions for insurance purposes and then keep the records in a safety deposit box. Your insurance provider can recommend what to photograph and how to secure it.
You want to maintain fire, theft and liability insurance. As the value of your property increases such coverage should also rise. Again, speak with your insurance professional for details.
Lastly, enjoy your home. Owning real estate involves contracts, loans, and taxes, but ultimately what’s most important is that homeownership should be a wonderful experience. Enjoy!
Categories: Northern Colorado Real Estate
Tagged: homeowner, owning real estate
The Closing Of Escrow!
Go to any local courthouse and you can find property records detailing real estate ownership in your community — sometimes records that date back hundreds of years.
These records are important because they provide today’s owners with proof that they have good, marketable and insurable title to the property they are selling. Equally important, such records enable buyers to provide proof of ownership when they sell.
The closing process, which in different parts of the country is also known as “settlement” or “escrow,” is increasingly computerized and automated. In many cases, buyers and sellers don’t need to attend a specific event; signed paperwork can be sent to the closing agent via overnight delivery.
In practice, closings bring together a variety of parties who are part of the “transaction” process. For example, while the history of property ownership has been checked, it’s possible that the records contain errors, unrecorded claims or flaws in the review itself, thus title insurance is necessary. At closing, transfer taxes must be paid and other claims must also be settled (including closing costs, legal fees and adjustments). In most transactions, the closing agent also completes the paperwork needed to record the loan.
What to expect.
Settlement is a brief process where all of the necessary paperwork needed to complete the transaction is signed. Closing is typically held in an office setting, sometimes with both buyer and seller at the same table, sometimes with each party completing their papers separately.
Whatever the case, the result is that title to the property is transferred from seller to buyer. The buyer receives the keys and the seller receives payment for the home. From the amount credited to the seller, the closing agent subtracts money to pay off the existing mortgage and other transaction costs. Deeds, loan papers, and other documents are prepared, signed and filed with local property record offices.
What you need to do.
One of the best parts of settlement is that buyers and sellers need to do very little.
Before closing, buyers typically have a final opportunity to walk through the property to assure that its condition has not materially changed since the sale agreement was signed. At closing itself, all papers have been prepared by closing agents, title companies, lenders and lawyers. This paperwork reflects the sale agreement and allows all parties to the transaction to verify their interests. For instance, buyers get the title to the property, lenders have their loans recorded in the public records and state governments collect their transfer taxes.
You are now a homeowner…Congratulations!
Categories: Northern Colorado Real Estate
Tagged: close of escrow, closing, escrow, homeowner
Get Insured!
No one would drive a car without insurance (or at least no one should!), so it figures that no homeowner should be without insurance.
The essential idea behind various forms of real estate insurance is to protect owners in the event of catastrophe. If something goes wrong, insurance can be the bargain of a lifetime.
What kind and how much?
There are various forms of insurance associated with home ownership, including these major types:
Title insurance: Purchased with a one-time fee at closing, title insurance protects owners in the event that title to the property is found to be invalid. Coverage includes “lenders” policies, which protect buyers up to the mortgage value of the property, and “owners” coverage, which protects owners up to the purchase price. In other words, “owners” coverage protects both the mortgage amount and the value of the down payment.
Homeowners’ insurance provides fire, theft and liability coverage. Homeowners’ policies are required by lenders and often cover a surprising number of items, including in some cases such property as wedding rings, furniture and home office equipment.
Flood insurance: Generally required in high-risk flood-prone areas, this insurance is issued by the federal government and provides as much as $250,000 in coverage for a single-family home plus $100,000 for contents. Local REALTORS® can explain which locations require such coverage.
Home warranties With new homes, buyers want assurance that if something goes wrong after completion the builder will be there to make repairs. But what if the builder refuses to do the work or goes out of business?
Home warranties bought from third parties by home builders are generally designed to provide several forms of protection: workmanship for the first year, mechanical problems such as plumbing and wiring for the first two years, and structural defects for up to 10 years.
Home warranties for existing homes are typically one-year service agreements purchased by sellers. In the event of a covered defect or breakdown, the warranty firm will step in and make the repair or cover its cost.
Insurance policies and warranties have limitations and individual programs have different levels of coverage, deductibles and costs. For details, speak with REALTORS®, insurance brokers and home builders.
Where to look.
Such policies are available from insurance brokers.
How do you get insurance?
The time to obtain insurance and warranty coverage is at closing, so speak with a REALTOR® or insurance broker prior to closing. Be sure to ask about limitations, costs, deductibles and “endorsements” (additional forms of coverage that may be available).
Be sure to have the appropriate insurance lined up before the close of escrow so there is not a lag.
Categories: Northern Colorado Real Estate
Tagged: flood insurance, home insurance, home warranties, title insurance
Make An Offer!
REALTOR® groups, working with legal counsel, have developed forms that are appropriate for realty transactions in specific communities. Such documents include numerous sale conditions and their wording should be carefully reviewed to assure that they reflect the terms you want to offer. REALTORS® can explain the general contracting process in your community as well as his or her role.
While much attention is spent on offering prices, a proposal to buy includes both the price and terms. In some cases, terms can represent thousands of dollars in additional value for buyers — or additional costs. Terms are extremely important and should be carefully reviewed.
How much?
You sometimes hear that the amount of your offer should be “x” percent below the seller’s asking price or “y” percent less than you’re really willing to pay. In practice, the offer depends on the basic laws of supply and demand: If many buyers are competing for homes, then sellers will likely get full-price offers and sometimes even more. If demand is weak, then offers below the asking price may be in order.
How do you make an offer?
The process of making offers varies around the country. In a typical situation, you will complete an offer that the REALTOR® will present to the owner and the owner’s representative. The owner, in turn, may accept the offer, reject it or make a counter-offer.
Because counter-offers are common (any change in an offer can be considered a “counter-offer”), it’s important for buyers to remain in close contact with REALTORS® during the negotiation process so that any proposed changes can be quickly reviewed.
How many inspections?
A number of inspections are common in residential realty transactions. They include checks for termites, surveys to determine boundaries, appraisals to determine value for lenders, title reviews and structural inspections.
Structural inspections are particularly important. During these examinations, an inspector comes to the property to determine if there are material physical defects and whether expensive repairs and replacements are likely to be required in the next few years. Such inspections for a single-family home often require two or three hours, and buyers should attend. This is an opportunity to examine the property’s mechanics and structure, ask questions and learn far more about the property than is possible with an informal walk-through.
It is good practice to understand everything about an offer and the contract well before you even make an offer. There are several options for a buyer to cancel the contract prior to specific deadlines such as title, inspection, appraisal and loan commitment deadlines and still get their earnest money back. Be sure your realtor explains all of these options well before you make your offer.
Categories: Northern Colorado Real Estate
Tagged: cancel an offer, contracts, earnest money, how much, making an offer
Get Your Funding!
Often the cost of real estate financing is routinely greater than the original purchase price of a home (after including interest and closing costs). Because financing is so important, buyers should have as much information as possible regarding mortgage options and costs.
Local REALTORS® can provide mortgage information, discuss financing options and recommend loan sources. Personally, I have a few mortgage lenders that I highly recommend and have used them on my own property purchases.
What kind of loan?
There are thousands of loans available out there from a variety of lenders, but in general, the mortgage you choose will likely be determined by at least several key factors:
- How much down? Loans with 5 percent down or less are now widely available — in fact, loans from major lenders with no money down have appeared in recent years.
- If you place less than 20 percent down, lenders will want the mortgage guaranteed by an outside third party such as the Veterans Administration (VA), the Federal Housing Administration (FHA) or a private mortgage insurer (PMI, or private mortgage insurance, is required by lender to protect against any mortgage defaults). More than 2.5 million VA, FHA and PMI loans are generated each year.
- How’s your credit? The best rates and terms are only available to those with solid credit. To get the best loans, make a point of paying credit cards, installment payments, rent and mortgage bills in full and on time.
- Are you a first-time buyer? It might seem that “first-time buyer” means someone who has never owned property before, but under most state programs, the term refers to those who have not owned property within the past three years. State-backed first-timer programs often feature smaller downpayments and below-market interest rates. For details, speak with your local REALTOR®.
How do you get a loan?
To obtain a loan you must complete a written loan application and provide supporting documentation. Specific documents include recent pay stubs, rental checks and tax returns for the past two or three years if you are self-employed. During the prequalification procedure, the loan officer will describe the type of paperwork required.
Where do you get a loan?
Mortgage financing can be obtained from mortgage bankers, mortgage brokers, savings and loan associations, mutual savings banks, commercial banks, credit unions, and insurance companies.
If you would like information on current loan mortgages or would like a referral to a highly qualified mortgage broker or lender in the Fort Collins, Loveland, Windsor, Colorado area then send me an email at: Mike@MikeMalvey.com or visit: www.ISellFortCollinsHomes.com for additional information.
Categories: Northern Colorado Real Estate
Tagged: Colorado, Fort Collins, Loveland, Windsor, realtor, financing a home, funding a home, mortgage broker, Mike Malvey
Choose Your Home!
There’s no doubt that choosing a home is a big decision and you want to do it right.
As a buyer, here’s what actually happens. A home has been placed on the market for which the seller has established an asking price as well as other terms. In effect, this is an offer. At this point, you have three choices: accept the seller’s offer and create a contract; reject it and not make an offer; or suggest different terms and make a counter-offer. If you choose this last option, the seller may accept, reject or make a counter-offer.
No aspect of the homebuying process is more complex, personal or variable than bargaining between buyers and sellers. This is the point where the value of an experienced REALTOR® is clearly evident because he or she knows the community, has seen numerous homes for sale, knows local values and has spent years negotiating realty transactions.
Is it THE house?
A house is shelter, but a home is far more. It’s where you live, relax, entertain friends, raise families, and work. A home is where you spend much of your life, and so choosing a house is an enormous decision.
How do you know if a house is THE one? Probably the best approach is to look at as many homes as possible, something made easy by the Internet, where you can quickly and easily view huge numbers of homes, check prices, take video tours and view extensive neighborhood information. Once your choices have been narrowed, you can then contact a local REALTOR® to find specific information and options.
Can you really afford it?
Remember Step 2 – the preapproval process? Getting preapproved means you have a very good idea of how much you can borrow, what loan programs will most likely work best in your situation and how much home you can afford.
How reliable is a preapproval? While preapproval is not a loan commitment, it’s still necessary for lenders to check such items as appraisals and the latest credit reports. Despite fluctuating interest rates, preapproval nonetheless provides a reasoned, careful analysis of what you can afford. After all, loan officers are routinely paid only when loans are originated. It doesn’t make much sense for loan officers to suggest high loan limits that later can’t be delivered.
Please let me know if you have any questions regarding choosing and making an offer on a house especially in the Fort Collins, Loveland and Windsor, Colorado area.
Categories: Northern Colorado Real Estate
Tagged: choosing a home, Colorado, contract, Fort Collins, home buying, Loveland, Windsor
Finally, homeowners will be able to deduct mortgage insurance from their 2008 tax returns. This can change the benefit of piggyback loans over paying for mortgage insurance.Typically the combined payments on a piggyback mortgage are a little less than the payment on a single loan that carries a monthly mortgage insurance premium. Piggybacks had a decided advantage because the mortgage interest on both loans was tax deductible but mortgage insurance payments were not…until now.But…there are always some buts…and here are the important caveats to evaluate.
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Caveat 1: The tax deduction applies only to mortgages that are closed in 2007. If you have a loan with mortgage insurance in 2006, you won’t be able to deduct the premiums unless you refinance in 2007.
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Caveat 2: There are income limits. You get the full deduction if your adjusted gross income is $100,000 or less. The amount you can deduct phases out rapidly after that, and no mortgage insurance deduction is available if you make more than $110,000.
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Caveat 3: This is a one-year deal and Congress would have to renew the deduction to make it apply for the 2008 tax year and beyond. This may or may not happen.
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Caveat 4: If you take the standard deduction instead of itemizing deductions, the new law makes no difference to you. For this to be worthwhile, your loan should be about $130,000 to even pay enough interest to make it a viable deduction. This deduction is geared towards households with incomes between $50,000 and $100,000.
The good thing about this new law is that it makes it easier to compare loans so everything is equal as far as being tax deductible.The mortgage insurance could be a more attractive option now since it can be canceled typically after a home has appreciated enough to have more than 20% equity. In comparison, a piggyback loan cannot be canceled and you pay it until it is paid off which would include a refinance.
If you would like help assessing the best option for your home buying situation in Fort Collins, Loveland or Windsor, Colorado areas then contact me so we can discuss your goals.
Please discuss your particular tax situation with your tax accountant or tax adviser. This bill was passed by Congress in the early part of December 2007 for only one year and only the 2007 tax year. There is no guarantee that it will be passed again for the 2008 tax year so please consult with your tax person to determine if a loan with mortgage insurance might be better than a piggyback loan.
Categories: Northern Colorado Real Estate
Tagged: mortgage insurance, piggyback loan, pmi, tax deduction
