Choosing the Right Denver Real Estate Agent

Choosing the right person to represent you in negotiating your home is a major decision. Whenever you see the designation of Realtor® (with a registered trademark) you can rest assured that person is a member of the National Association of Realtors® (NAR), and has a commitment to meeting the standards of the organization. My team and I have a network of professionals that have done a great job for our clients in the past, and we can provide you with a referral to a qualified representative, and pre-approval to shop as a cash buyer.

How will you know which Realtor® is right for you?

Seek to work with an experienced Denver professional that works with buyers on a regular basis. A real pro will go the extra mile to show you that they will look out for your best interest and gain your respect. Sincerity is a key word here. This type of Real Estate Agent will act promptly to get you information about their team and their methods of doing business, along with quotes and references from past clients.

Once you set an appointment to meet with a Agent and his/her team, they should be rolling out the red carpet for you. You should have a personal introduction to each person you are expected to have contact with throughout the buying process. They should go out of their way to establish a long-term relationship with you, rather than thinking of you as a one-time transaction.

An experienced buyer’s representative will ask many questions regarding your goals rather than tell you what they think you want to hear. He/she will also take your finances into consideration so that they can help you make the you qualify for. They will seek to exceed your expectations in every way by having a system in place that provides complete customer satisfaction.

What can an experienced Realtor® do for you?

An experienced professional will have access to the computerized Multiple Listing Service (MLS), which changes daily. He or she can provide you with new listings to consider as they become available, and will also include important demographics and market value information on the area you are seeking to buy a home. This person will serve as a strong negotiator on your behalf and provide guidance every step of the way. In the long run, using a trained professional will save you time and money. It is important to let your Agent know what your goals are so he/she can eliminate the listings that do not meet your criteria.

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Cycling for a good cause

The 12th Annual Road Ramble is a bike riding event that benefits the Griffiths Centers for Children. I rode the 34 mile course on a mountain bike — bad idea. Climbing uphill roads on a mountain bike was brutal and the course had many hills to climb.

Live Strong!

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Mile High Sports Magazine

Good news for those that follow the sports scene, there’s a magazine just for you! It’s called Mile High Sports Magazine. Produced by Haas Rock Publications, Mile High Sports Magazine provides in depth coverage of the following professional teams:

- Broncos (Football)
- Nuggets (Basketball)
- Rockies (Baseball)
- Rapids (Soccer)
- Crush (Indoor Football)
- Mammoth (Indoor Lacrosse)

The local college (the University of Colorado, State University, Air Force Academy, University) and local prep scene is covered too!

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Real Estate Will Continue to Boom Despite Naysayer Claims

In recent years, it’s impossible to turn on the television or read the headlines without seeing a warning of impending doom. The media claims that the housing bubble is growing too big, and it’s about to burst! This pessimism has sold a lot of news stories, but it has also created many false concerns for first-time and move-up home buyers as well as investors. We keep hearing about this horrible catastrophe, yet the market continues to boom. Why is that? Because the media neglected to consider one very important factor that is driving our current economic recovery: demographics.

The boom began when interest rates fell into the single digits, making housing much more affordable. While this certainly contributed to home sales, there are additional causes we can isolate. Dr. David Lereah is a best-selling author and the Chief Economist for the National Association of REALTORS® (NAR). In a recent interview, Dr. Lereah revealed, “The biggest factor that affects today, and has made it immune to some cyclical changes in the economy, has been demographics.”

The most significant and frequently mentioned demographic is the “Baby Boom” generation, which refers to children born in the years following World War II. Economic forecasting expert and author, Harry Dent, has written extensively about how buying habits occur in a predictable fashion as a generation ages. From needing an apartment in college, to buying a starter home and eventually trading up to something larger, it is all cyclical. Since the Baby Boom generation is the largest so far, their impact has been far greater than the generations that proceeded them.

Now that Boomers have moved into their top earning years, they continue to push the housing market to new levels. They are purchasing larger primary residences as well as vacation homes and investment properties. The statistics for 2004 reflect this trend, with 36% of home sales going toward second homes and 23% of sales going toward investment properties.

Demographic trends don’t end there:

  • Immigration - There has been a large influx of immigrants over the past three decades. According to Lereah, it typically takes at least a generation for immigrants to become fully active in the home buying market.
  • Children of Baby Boomers - This generation is now in their twenties and looking to their first homes.
  • Retirees - While the demand for housing is expanding, the supply is decreasing. With advancements in medicine and treatments of disease, retirees are living longer. This means that they are occupying their homes for more years, which decreases the supply of homes available for .

In addition to the demographic factors listed above, has been a rewarding investment. Stocks and bonds have not performed as well as investors were used to, while real estate has exceeded expectations. In an uncertain world, people are more comfortable their money in which will appreciate.

So if the current boom can primarily be explained by the factors we just discussed, how do we know whether it will continue?

Dr. Lereah says, “We are in the Golden Age of .” Even if the economy should slow and interest rates increase slightly in the coming years, the demand for houses is still strong. The biggest impact that such a change would have is to decrease the of price appreciation. While this may sound ominous, it really isn’t.

The media likes to refer to the boom in terms of bubbles and balloons. In keeping with that analogy, Lereah indicates that local markets may react to higher interest rates by letting some air out of the balloon. The double digit price appreciation we’ve been experiencing could decrease over the next year or two to a more typical 4-6% range. This is still a higher of return than found in the stock market, all things considered.

So if you are looking to a second home or investment , where might be a good location to focus your attention? Ideally, where the Baby Boomers are planning to retire. The demand for housing in these areas continues to grow. Over the past year, some of the highest price appreciation took place in the resort areas of Florida.

The next time you turn on the television or read the headlines, be secure in the knowledge that the sky is not falling.

Additional Resources:
Are You Missing the Real Estate Boom?: Why Home Values and Other Investments Will Climb Through The End of The Decade - And How to Profit From Them - by Dr. David Lereah

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Product of the month: Reverse Mortgage

Until recently, seniors 62 years of age and older have not had the best choices when it came to getting cash from their homes. Traditional home loans only offered the option of either selling one’s house or borrowing against its equity.

With reverse mortgages coming on the scene, seniors now have some additional cash-flow alternatives. This type of loan allows mature borrowers to convert their into tax-free income without leaving their current home or making payments - and they do not need an existing income to qualify.

How a Reverse Works
Reverse mortgages are probably best understood when compared side-by-side with traditional home mortgages, otherwise known as “forward” mortgages. The following table shows the differences between the two:

FORWARD REVERSE
Uses income to pay Uses to get cash or credit
Monthly payments No payments; is due when the borrower(s) pass away or relocate.
Falling , rising equity Rising , falling equity

Both loans incur against your home, and both affect equity, but they do so in different ways. Traditional home mortgages require making monthly payments to a lender. With a Reverse , payments are made to you.

What a Reverse Involves

Here are some important points to know when considering a reverse :

Eligibility: To qualify for a , you must be at least 62 years of age. All owners who are on the title deed must meet this age requirement. You must also have paid off all, or most, of your home . Lastly, the home you reside in must remain your principal place of residence.

Mandatory Counsel: To receive a reverse , federal law requires that you first undergo counseling to understand how these mortgages work. This ensures you will make the right decision when it comes to choosing a plan. Also, the counseling service must be provided free of charge.

Tax-Free Income: One of the advantages of a reverse is that the money you receive will not be taxed. The amount you’ll obtain depends on several factors including the plan you select, the type of cash advances you choose, your age, and the value of your home. Typically, the older you are the larger the loan, as you will have more equity in the house.

Cost: The cost of a reverse varies considerably from one type to the next. However, you can typically use the money you receive to offset the loan fees. The costs will be added to the loan balance and must be repaid with interest once the loan terminates.

Repayment: Reverse mortgages do not require any payment as long as the borrower(s) remain in the home. Should the borrower(s) pass away, sell the home, or permanently relocate, then the loan would be due in full, along with interest and additional costs. If two borrowers are on the loan and one dies, the loan would not be due since one of them still occupies the home.

Home Equity Conversion - The Federally Insured Loan

The most common type of is the Conversion Mortgage, otherwise known as a HECM mortgage. This is the only program that’s federally insured and backed by the U. S. Department of Housing and Urban Development (HUD). This type of reverse is popular for a few reasons:

  • Ability to choose your own interest . You can select one that changes annually or one that changes every month.
  • You have several payment options. You may receive monthly loan advances for a fixed term or for as long as you live in the home. You may also choose to receive a line of credit or combine monthly loan advances with a line of credit.
  • The loan can be used for any purpose. With a HECM, you don’t have to designate the loan to a specific use; you can apply the funds to anything you choose.
  • Protection. This is one of the most attractive features of a HECM. This plan protects you by guaranteeing continued loan advances even if your lender defaults.

Sell or Stay?

The main reason people choose a is to gain financial independence and maintain an adequate standard of living without leaving their current home. The best way to decide if a reverse is right for you is to it to the other option of selling your house. To do this, ask yourself these three questions:

  1. How much cash can I get by selling my home?
  2. How much will it cost to buy or rent a new place?
  3. Is it worth my moving now, or do I prefer to do something else with the money?

Perhaps you’ll confirm what you knew all along, where you now live is the best place to be.

Contact me today if you have any questions.

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Want your site to be gangsta?

There’s a site called www.gizooggle.com that translates any website into ghetto colloquialism. Here’s an example take from my site:

EXPECT MORE FROM YOUR PROFESSIONAL

Whether you’re looking to build your dream home, a home, or you should expect more from your mortgage professional. I work as a mortage broker and banker. As a mortgage broker, we have access to a vast array of loan programs so we’ll find the right one for you. As a mortgage banker, we have control over the process and fund your loan with our own money.

was converted to:

EXPECT MORE FROM Yo PROFESSIONAL

Whetha you’re look’n ta build yo dream home, a home, or you should expect more fizzle yo mortgage professizzle. I wizzay as a mortage drug deala n playa with the gangsta shit that keeps ya hangin. As a mortgage playa , we hizzle access ta a viznast array of loan programs so we’ll find tha right one fo` you. As a mortgage wanna be gangsta , we have control over tha lend’n process n fund yo loan wit our own money.

All right, i’ll admit there’s nothing gangsta about the business. However, I do my best to represent and keep it real! Fa shizzle!

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I’m for Phil

Yesterday Phil Mickelson won the 2005 PGA Championship at Baltusrol, a golf course located in Springfield, New Jersey. For some reason the New York/New Jersey area roots harder for Mr. Mickelson than any other professional golfer or athlete. It’s rare to see the good guys win in sports. Phil Mickelson’s a good guy and that’s why I’m for Phil!

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Got FICO?

I haven’t posted anything related to mortgages in a while so this week I decided to talk about the credit scoring model. First and foremost, FICO is the Fair Issac Corporation model. It’s used exclusively by Experian. The are five main categories of information that the FICO score evaluates:

Credit Payment History: 35%
At 35% Credit Payment History weighs the most. While events such as a bankruptcy, or tax liens will have the greatest negative impact on your score, multiple and/or recent late payments have a tremendous impact as well.

Credit Balances: 30%
What is your credit balance to your credit limit? The Outstanding Credit Balance ratio has the second highest weight on your . High balances on your credit cards can be viewed as a red flag since it’s an indication that you may be overextended. If you have multiple credit cards, you may want to spread the wealth to keep the credit balances to credit limit ratio low.

Credit History: 15%
Credit History is a reflection the length of time that you’ve had accounts open. You’re rewarded for keeping long term . Older credit accounts that have been used more frequently will have more weight than those that are newly opened or used with less frequency.

Credit Inquiries: 10%
Opening a new credit account doesn’t harm your dramatically especially after you make the first payment. However, credit inquiries can negatively impact your score. Generating many credit inquiries exudes that you are trying to secure a large amount of credit or you are being turned down by lenders and have to apply elsewhere.

Credit Types: 10%
This percentage of your FICO score is based on your mix of credit. Do you have a good mix of credit cards, retail accounts, installment loans, finance company accounts or loans? It looks at the whole picture and totals how much of each type of account that you have.

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Georgetown to Idaho Springs

On August 13th, the annual Georgetown to Idaho Springs half-marathon took place. Consider this:

  • it’s practically downhill
  • it benefits the Clear Creek School system
  • you get great views of G-town, Idaho Springs, and all points in between
  • $25 entry fee (super cheap)
  • the watermelon afterwards was unbelievable

Runners of all abilities ran the Georgetown to Idaho Springs half-marathon. I was amazed at the turnout. Idaho Springs is about 45 minutes from so there were a lot of people who woke up really early in the morning.

Training for this marathon was interesting. I started in June by doing nothing. By mid June I got my bike fixed so I went on a couple of bike rides. In July I started running again. Nothing crazy just a couple of 3 mile runs on my treadmill. Occasionally I would play pickup basketball after work and on Sunday I’d go for a bike ride. August rolled around and I went on two long runs. The first long run was three times around City Park by the Zoo. It’s about three miles around so I ran 9 miles total. The second long run was four times around Washington Park. It’s about 2.5 miles around so I ran 10 miles total.

My main goal was just to run and complete the race. I’ve been suffering from shin splints all summer long so my running schedule was severely compromised. I really don’t recommend this training schedule especially if you’ve never run a half-marathon before. Proper training will ensure a pain free experience.

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Deuce is on the loose

I’ll be the first to admit that Rob Schneider movies are totally insane! I’ll also be the first to admit that his movies are some of my favorites!

“Deuce Bigalow, Male Gigolo” gave us the term “man-whore.” It’s also a pretty funny flick. Now Rob Schneider is back at it with “Deuce Bigalow, European Gigolo” his second installment of Deuce. Will I watch it? Yes. At the movies? No. I can wait til late 2005 or early 2006 to rent the DVD.

If you watch Rob Schneider’s movies closely, his Filipino mom always makes a cameo appearance.

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