Termites in Winter?
January 30, 2010
If you live in Oklahoma or any other state in America, you may be concerned about termites in your home. Termites live in your home and outside as well, where there is wood there are termites, period. Yes, even in the cold wintry months there are termites.
Cold weather does slow down termites and during extreme cold, termites will hibernate, but they are still around. The only true way to know if you have termites, living in your home is with a termite inspection. When you purchase a new or even used home, you should talk with your Tulsa real estate agent about your concerns of termites. They can ensure that a termite inspection will be done prior to you purchasing the home. In practically all cases, home inspections do not include termite inspections and will be done separately for an addition cost.
What to Expect
A termite inspection is a visual inspection of all accessible areas of your home or the home you are considering purchasing. This visual inspection will consist of looking for evidence of wood destroying insects and wood destroying organisms. Since this is true, the inspector is not only looking for evidence of termites but also ants, bugs and fungus. The inspector will check all areas of the home including crawlspaces, basements, attics, and the exterior of the home. The inspection normally takes around 30 to 45 minutes according to the size of the home and the accessibility of the areas that need inspected.
The Termite inspector is not actually looking for the insects themselves but for termite pellets or fecal matter. This oblong light gray to very dark brown two to three millimeters long matter can be found on surfaces or even in spider webs that are close by the eaves of the attic.
Treatment for Termites
There are several different treatments available for Subterranean termites, which includes chemical treatment. The chemical treatment is normally a type of barrier that is placed between the termite’s home, which is in the soil, and your home. The chemical is placed in the soil on all sides of the foundation. The technician will create holes around the foundation at around 16 inch intervals. Then the chemical will be placed into the holes and create the barrier.
Another treatment method is known as in-ground baiting systems. This baiting system is made from a wood material in which the worker termites will of course want the rest of the colony to know there is food available at this location. He will leave a scent at the baiting station. The bait station will then be replaced with a chemical inhibitor that will stop the molting process in termites and they will be unable to grow. Of course, the inhibitor will be taken back to the colony so all termites will eventually die.
For more information regarding Tulsa news, articles, and commentary on homes sales, farms, and commercial property in the Tulsa Real Estate market please re-visit or subscribe to our RSS Feed on our Tulsa Real Estate Mall Blog.
Tulsa Home Buyer Tax Credit
January 19, 2010
The Tax Credit Is Extended and Expanded
The federal Tulsa Home Buyer Tax Credit is approaching the April 30th 2010 deadline very quickly. This program is the only thing our current administration has truly done to actually stimulate the economy.
Failed Programs:
- This current administration is the one that has spent the $787,000,000,000. Yes that is $787 Billion with a B to stimulate the economy and they have no idea where it was spent nor exactly what the current balance is and to whom. Please don’t forget that the main intention of this was to keep the unemployment below 8% and now we are well above 10% and that number is very conservative if the truth was to be known.
- This is also the administration that has failed miserably at bailing out the banks by giving them billions with very little accountability or even basic rules that would truly stimulate loans to the people that actually need help and a lot of this bailout money did not even stay in the U.S…
- Another great example of an absolute travesty of a program, this current administration is trying and continually shoving down the Americans throat, is the current Health Care Bill. The back door deals that have been struck and outright bribery to get this so called “reform” through is a national disgrace and comes at a time that we can least afford it. At best the legislation will raise health cost, increase our taxes and reduce the overall quality of health care. Consider that fact that our postal system has been under the control of our government from day one and would close tomorrow without the continued subsidies by the government that it has had for years. Now we are expected to believe that the government can not manage getting a letter across the country efficiently but we can trust them to manage our health and the health of our families? If this bill was to pass this would be just another failed program that would absolutely bankrupt our country. The one thing everyone seems to be forgetting is do you want Washington dictating the level of healthcare you can and can’t have and when you can be treated. If you didn’t know better you would think that this administration was truly trying to destroy our country and the sad part is they are doing a fantastic job of that.
The Program That Worked – Time is Running Out
The government lost sight of what started this recession in the first place, the housing sector. They spent billions on ineffective and failed programs to stimulate the economy. The only effective program they have initiated to revive the economy is the Tax Credit but time is running out.
With that being said the first-time homebuyer tax credit being extended and expanded to include move-up buyers, prospective Tulsa home purchasers now have an unprecedented opportunity right now. There has never been another time in our nation in which…
- Tulsa Home prices are down significantly as in most areas of the country over the past three to four years. Plus the glut of Tulsa foreclosures makes for a particularly excellent buying opportunity.
- Mortgage Rates are at historic lows. Never before could purchaser purchase homes at such affordable rates as we have seen in the past 12 months.
- The government is literally subsidizing the purchase with a credit up to $6,500 for move-up buyers and up to $8,000 for first-time buyers. This is a dollar-for-dollar tax credit in addition to the deduction of interest and taxes paid.
Put these facts together and this means housing is the most affordable it has been in a generation. Despite frigid temperatures and unbearable winter so far in Oklahoma, our Tulsa area Realtors are gearing up for an early spring.
This Tulsa area Home buyer opportunity is not without challenges, including tighter qualification standards and low appraisals. From low scores to valuation challenges, every deal seems to have obstacles and takes longer to close. If the bank owns the home, the time it takes to get a contract approved may be excruciating but can be fruitful.
This administration truly needs to concentrate its efforts on continuing this first time home buying program and others like it. As we know this administration has a track record of making poor decisions. If our administration, would design more programs like the first-time homebuyer tax credit, that really stimulates the economy and provides jobs then their ratings might actually start to climb and our country might actually recover.
Tax Credit Nearing the End
January 4, 2010
The looming end of the tax credit that has helped so many Tulsa area buyers is a bit scary especially if you look at mortgage applications and the Tulsa housing market. The Mortgage Bankers Association released a report that stated mortgage applications are at a six-month low and rising rates are also cutting into the good news in the refinance market. Rates on the 30-year fixed mortgage hit 5.18% for the week ended January 1, 2010, which is the highest level seen since August 2009.
This along with the expiration of the homebuyer tax credit in just a few months is sure to weaken profits for Bank of America, Wells Fargo, and other lenders across the board.
As the tax credit is due to expire in the spring home buyers may jump back in the market to get a piece of this credit, however, home sales were falling at the end of the year.
NAR chief economist Lawrence Yun stated, “The fact that pending home sales are comfortably above year-ago levels shows the market has gained sufficient momentum on its own,” and went on to say “We expect another surge in the spring as more home buyers take advantage of affordable housing conditions before the tax credit expires.”
Paul Dales, an economist with Capital Economics stated, “Sales are likely to steadily increase again as the contract-signing deadline for the new extended and expanded tax credit as the end of April approaches,” … “That said, the prospect of a flood of bank-held properties hitting the market at some point will remain a lingering concern for some time.”
Some individuals have bought homes and are excited about the tax credit while others that jumped in during the first tax credit in 2008 are not as pleased as they must repay their credit. The tax credit at the end of 2008 was deemed a loan from the government to aid the economy. Shortly after this “loan”, another save the economy “tax credit” occurred in the same amount of $8,000.
We hope this information about the Tulsa home buyers Federal Tax Credit was helpful. For this and addition news or updates on the Tulsa housing market please subscribe to our Tulsa Real Estate Mall Blog RSS Feed.
Tulsa Real Estate Market Conditions
January 3, 2010
If you compare the third quarter of 2009 with the fourth quarter of 2009, you will notice that average Tulsa home sales price remained stable at around $156,400, which was five percent more than, if you compare it to fourth quarter Tulsa home sales price in 2008. Sales volume was down a full three percent when compared to the third quarter of 2009 with 1170 sales. This on the other hand was an increase of seventeen percent when compared to the fourth quarter of 2008. The days homes stayed on the market increased by four percent when compared to third quarter but dropped a huge nine percent when compared to the same time period in 2008.
In Tulsa and the surrounding area, interest rates are at the low level of 5.5 percent. Due to this, many realtors and speculators expect to see more buyers taking advantage of these rates as well as the government tax credit that will be expiring in April.
Tulsa has received national recognition and has a reputation for being one of “America’s Most Livable Communities” in 2004 by Partners for Livable Communities, Washington D.C. and in 2006 was ranked #6 on Forbes.com list if “Best Cities for Jobs.”
Tulsa and the surrounding area are home to many wonderful attractions, family activities, and quality schools that are the main reason that families are seeking homes in the area. Just by glancing around Tulsa you will find an array of things to do including the Tulsa Speedway, golf courses, the Tulsa Zoo, Performing Arts Center, Tulsa Ballet, and the Tulsa Opera to name a few. Then as you look at the education opportunities you will find quality schools offering the tools needed for students to achieve success in all grades from pre-kindergarten through twelfth grades and beyond to universities such as the Oklahoma State University and Oral Roberts University, as examples.
Homes, ranches, farms, condominiums, golf homes, and town homes can be found in Tulsa, Broken Arrow, Bixby, Jenks, Claremore, Catoosa, and Inola. To learn more contact a Tulsa Homes Expert by calling RE/MAX for more information at 877-738-8572.
Fannie Mae & Freddie Mac’s Appraisal Rules
August 26, 2009
Congress is taking a break until after Labor Day, but things are boiling over the Fannie Mae and Freddie Mac’s appraisal rules. The rules of course are very controversial or we would not be talking about Capital Hill.
If it were up to Bipartisan legislation, the Home Valuation Code of Conduct would be put on a shelf and left for 18 months and this idea is actually getting new sponsors, which is not at 54.
The National Association of Realtors is pushing for the Home Valuation Code of Conduct bill in the key congressional representatives’ home district during the recess. The National Association of Realtors is very critical of the Home Valuation Code of Conduct rules with their side stating the rules “produce deal-killing lowball appraisals, encourage the use of low-paid appraisers unfamiliar with local conditions, and have raised the cost of valuations for consumers.”
Along with the National Association of Realtors, appraisers, mortgage brokers, and home builders are also against the rules. The Home Valuation Code of Conduct took effect on May 1.
David Stevens the FHA commissioner recently presented the first public comment from HUD, which was, the FHA account for close to 1/3 of mortgage market volume and does not have any plans to adopt the Home Valuation Code of Conduct. He went on to explain that FHA has its own guidelines and standards that cover appraisers and appraisals. A few weeks later, Stevens did comment that some of the core principles of the guideline were good.
Stevens stated, “We do like the HVCC’s separation of influence in ordering the appraisal from those who financially benefit from the outcome.” He did say that FHA will not use the Home Valuation Code of Conduct but may incorporate some of the principles.
The goal of FHA as stated by Stevens “is to get changes into the marketplace in the near future.” This is a hint that FHA may soon be presently new guidelines on home valuations, which will of course affect realty agents, appraisers, consumers, and lending companies. No details of any of the changes are available at this time.
Labor Day is fast approaching and Capital Hill will be a buzz before long. The bill only has 54 supporters and with all the discord among the politicians, REALTORS, home owners, and lending companies, I doubt if we will see any changes yet, as they will more than likely more on to more pressing issues such as health care.
Rural Development Loans
May 30, 2009
Loans for the Tulsa County & Surrounding County
Even though this program for Rural Development Loans has been around since March 27, 2009, many people still do not know that the United States Department of Agriculture (USDA) has Home Purchase Programs available. The Oklahoma USDA rural mortgage program is a government sponsored home buying program, just like Oklahoma FHA and Oklahoma VA, the USDA does not originate the loan, you will need to apply for a mortgage loan through a lender.
The American Recovery and Reinvestment Act of 2009 have made $10 billion available through the Rural Development Single Family Housing Guaranteed Loan Program known as the SFHGLP.
The USDA has explained that the loan is “subject to receipt of congressionally appropriated funds”. Along with this, all loans must meet specific guidelines especially income. These income limits vary according to the section of the state in which you live and the number of members in your family.
In the Tulsa OK metro area the income limits are:
- Very low income – one person at 20,150 to 8 persons at 38,000
- Low income – one person at 32,250 to 8 persons at 60,850
- Moderate income – one person at 37,750 to 8 persons at 66,350
- 38-year term – one person 20,400 to 8 persons at 38,500
- ADJ. Median Inc. – one person 34,000 to 8 persons at 64,200
The various programs available through the USDA include direct loan program with an estimated loan limit in Tulsa County of $144,500, which became effective march 1, 2009. SFH Guaranteed Loan with income limits of RHS low income for 1 to 4 persons 46,100 and 5 to 8 persons at 60,850 and the RHS Moderate income guaranteed loan income limits at 73,600 for 1 to 4 persons and 97,150 for 5 to 8 persons.
The Mutual Self Help Housing Program is also available for Tulsa County residents with qualified recipients completing 65% of the work themselves to build his or her new home.
To learn more about the various rural development programs that you may be entitled to, you should contact a local real estate agent. He/she will be able to help you find a program to provide you with the help you need to buy a home.
What do you Want in a Home
March 17, 2009
When it comes to purchasing a new Tulsa home for the first time you should prepare a checklist of the items that you know you desire with your new home and things that you can do without but would like to have. If you are purchasing your first new Tulsa home along with a spouse, it would be a great idea for both of you to sit down and prepare the list together to ensure that you both will find the dream home that is perfect for both of you.
Here is a checklist of what you should decide on before searching for a first time new home.
- Where do you wish to live? Do you plan to say in the same area or relocate in another part of the nation?
- What price range can you afford? Set a low and high price.
- Are you concerned about the school system? If you do not have children or do not plan to have any while you are living in this home you can skip this question.
- Do you desire a brand new home or an older home? Specify how old the home can be before being considered if you do have a preference.
- What kind of home do you desire – a one story, two story, condo, mobile home, split foyer, bi-level, or tri-level?
- What style of home do you like – traditional, contemporary, southwestern, and colonial or maybe you do not have a preference at this time.
- Would you be willing to do any type of repairs or remodeling? If so, how much?
- Will you need to live close to public transportation such as a bus line?
- Do you have any type of physical handicap such as using a wheelchair or other family member’s physical needs?
- Do you have a pet, what type of area do you need for them?
- What type of lot do you desire – one acre or larger, less than one acre, fenced yard, garage, carport, patio, pool, extra parking, barns, outdoor spas, view of a lake, etc…?
- How many bedrooms do you want?
- How many bathrooms do you want?
- What square footage do you desire? Set a low and high footage.
- What features do you want – many windows, spa in the master bathroom, no interior steps, work room, fireplace, laundry room, basement, attic, library, family room, great room, formal dining room, formal living room, breakfast nook, ceramic tile, wall to wall carpet, air conditioning, etc…?
- What type of community do you wish to live in?
- What features would you like in the community – public pool, basketball court, tennis court, golf course, clubhouse, gated community?
Any other features that might not be on this list that you wish to add.
We will work hard to be YOUR Tulsa Real Estate Agent! We are the Tulsa Homes experts and will work hard to find the home of your dreams. Call Toll Free Direct at 1 (877) 738-8572 today.
What Can You Afford in a New Home
February 5, 2009
When it comes to purchasing a Tulsa home for the very first time, you may not be ready for everything the lending company has in store for you. Before you rush out and apply with a lending company, you should do your homework.
Most everyone can be approved for a Tulsa home loan, no matter what their credit rating is however affording the monthly payments is another story. Of course, when you apply, the lending company or realtor is going to tell you they can get you approved for the loan. If you have a house in mind already, this could be a huge mistake. Let’s say the home is $130,000. You talk with the realtor and explain that you have a few bad things on your credit report and they reply do not worry, our lending company can get you in this home. Now, you proceed with all the paperwork and wait to hear what your monthly payments will be.
If you are like others looking to purchase your first home, you will think that you are going to get 8% interest which would bring the total of your home to $140,400 along with other fees. Now, divide that up by 30 years and your base payment would be per year $4,680. However, nothing is, as it seems. In some cases, the interest is compounded monthly or in other various ways. This changes the payment and if you do have any problems on your credit report you will be looking at a much higher interest rate up to 21% which would raise the price of the home at least $27,300 according to how they add the interest. In addition, if your credit is not perfect they will not give you a loan for 30 years you may be looking at only 20 years. All of a sudden now, your low monthly payment has reached near $2,000 per month all because of the interest rate.
You may still be able to get the loan however, your mortgage payments may be very hard for you to achieve each and every month. This can become a major problem down the road if you go ahead and purchase the home if you do not believe you can afford the payment.
The best thing to do before finding the home of dreams is to get pre-qualified for a home loan that you know you can afford. To learn what you can afford, sit down, make a list of all of your total income per month, all of your payments including credit cards, etc, and then see what you have left. Now, out of this amount what can you comfortably afford to pay to own a home? When you talk with a lending company stick to your guns – have a low and high figure for your monthly mortgage payment and do not go over what you know you can afford. If you do, you may default on the loan and not only lose your home but any good credit that you now have on your credit report.
We will work hard to be YOUR Tulsa Real Estate Agent! We are the Tulsa Homes experts and will work hard to find the home of your dreams. Call Toll Free Direct at 1 (877) 738-8572 today.
Understanding Mortgage Rates
December 7, 2008
So, you are thinking about purchasing a Tulsa home and need some information on a mortgage. Let’s define a mortgage. Usually a mortgage means a long term loan which the borrower (that’s you) acquires by completing an application offered by a bank, online mortgage broker , wholesale mortgage company, independent mortgage broker, lender or sometimes the seller of real estate. Finance mortgage companies hold a claim to property until debt is paid off. These loans are usually typed in the way of a contract.
How do you know what the mortgage rates will be?
Mortgage rates are figured by dividing the amount of interest by the amount of money borrowed. An example would be: If the lending company charges $60 per year for you to borrow $1,000, the mortgage rate would be 6%. You will find mortgage rates posted at most lending companies.
What types of things determine what mortgage rates will be?
- Inflation affects mortgage rates. When inflation rises so does mortgage rates. This happens because lending companies will lose money that will be paid back to them in the future.
- How much credit people are seeking and how much is available.
- The rate that other institutions charge each other for their short-term loans. (Federal funds rate)
Are mortgage rates different for different types of loans?
Yes, the higher the credit risks of the loan, the higher the mortgage rate. Loans that are determined to be high risks are ones that the lending company believes will probably not be repaid.
Therefore, mortgage rates can be a big factor when you are looking for a loan. This may not be a big difference but when you are talking about several thousand dollars, it does become an important deciding factor. Mortgage rates vary from state to state and from lending companies to lending companies. They can also very according to the length of the loan and the amount of money borrowed.
There are many companies online today that can give you the current mortgage rates for the city and state that you live in. Without even leaving home you will be able to check the current rates and find lending companies in your area that have the lowest mortgage rates available. You can even find companies online where you can apply for loans when you find a good mortgage rate.
Do not apply with a company just because their mortgage rates are lower than the last one you checked out. Be sure you check every option in every loan package to insure that you are in fact getting the best type of loan with the options that you need.
Be sure when you talk with different lending companies concerning mortgage rates, be sure you have all of your information together and that you know what you want. You will be able to check out the mortgage rates and other loan options from different loan companies. Be sure you shop around as each loan company may be different in the options or their mortgage rate charges they have available.
Remember that mortgage rates can change from day to day, be prepared to apply for a loan when the mortgage rate is where you want it to be. Check the mortgage rates often by visiting the sites online that keep accurate records or have an updated feed available with the current prices of mortgage rates in your area. Be sure you are up to date on what mortgage rates are when you talk with a lending company. If they seem to be a lot higher than you expected then ask them why they are in fact higher than you found on the internet. If they cannot give you a good explanation, find another lending company.
We will work hard to be YOUR Tulsa Real Estate Agent! We are the Tulsa Homes experts and will work hard to find the home of your dreams. Call Toll Free Direct at 1 (877) 738-8572 today.
Types of Mortgage Lenders
November 2, 2008
Okay you have decided to buy a new Tulsa home and you are wondering where to start. The first place to start is to understand the different types of mortgage lenders available. There are many different types of mortgage lenders.
Mortgage Bankers
A mortgage banker is a mortgage lender that is big enough to sell loans to places like Fannie Mae, Ginny Mae, Freddie Mac, and other loan companies. Some will in fact service the loans that originate while others may not. These mortgage bankers have wholesale lending divisions to mortgage bankers.
Mortgage Brokers
Mortgage brokers are mortgage lenders that originate loans to sell them to wholesale lending companies. The mortgage broker has been doing business with these wholesale companies for a while. Mortgage brokers do not do any underwriting or funding. They also only work with wholesale lending companies that have a wholesale loan department within their company structure.
Wholesale Lenders
Wholesale lenders are a type of mortgage lenders that may not have their own retail branch; they may only work with mortgage brokers. Wholesale lenders offer their loans to mortgage brokers at a lower cost that is available at the retail branch to the general public. The mortgage broker can then add his own fee. To you that would mean that you are paying around the same that you would if you went to the retail branch of the wholesale mortgage lender.
Portfolio Lenders
This mortgage lender is lending money and originating loans on their own behalf. They do not sell them on the secondary market quickly. Because of this, they do not have to go by the guidelines set forth in the Fannie May or Freddie May guidelines. A portfolio lender can determine their own rules for their loans based on your credit. Most of the time portfolio lenders are large banks and savings & loan companies. If you pay your payments on time for a year it becomes known as seasoned, after it becomes seasoned it is then marketable even if your loan does not meet the guidelines set forth by Fannie Mae. When the portfolio lender sells your seasoned loan it then frees up their money so they can make more loans.
Direct Lenders
Direct lenders are mortgage lenders that fund their own money. This can be large or small lending companies. They usually have a credit line where they can draw money to fund all of these loans. Most of the time direct lenders draw up the loan in their own company name.
Correspondents
Correspondents are mortgage lenders that do their own loans and instead of selling them into pools, they sell these loans to a sponsor, which is a larger lending company. The sponsor then sells these loans like they were a mortgage banker to companies like Ginny Mae, Fannie Mae, or Freddie Mac. Sometimes, correspondents fund the loan themselves or the funding may come from a larger lending company.
Banks and Savings & Loans
These mortgage lenders are similar to portfolio lenders
Credit Unions
Credit Unions are similar in operation to correspondents, although a large one could act as a portfolio lender or a mortgage banker.
Now you understand what mortgage lenders are and how they work, you may be able to understand where to find a mortgage loan. Be sure to check with all kinds of lending companies before you make a choice for your mortgage loan.
Enjoy shopping for your new home and finding a mortgage lender that will help your dreams of owning a new home become a reality.
We will work hard to be YOUR Tulsa Real Estate Agent! We are the Tulsa Homes experts and will work hard to find the home of your dreams. Call Toll Free Direct at 1 (877) 738-8572 today.