This afternoon, I had a great conversation about the Estes Park real estate market with Rich Flanery of Cherry Creek Mortgages (a local Estes Park Mortgage Broker who calls himself a “loan consultant” – I like that). In our conversation we talked a lot about where mortgage rates are, where they’ve been and where they are headed in the near future. Rich had so many good things to say, that I asked him to send it to me in writing so I could share it with all of you!

Life is all about second chances. If you are in the market for a new home it appears you may have been given a second chance. Just a few weeks ago, mortgage rates were at historical lows. However, in just two short weeks, mortgage rates have shot up dramatically. The main reason for this is the prospect of future inflation because of all the money the Federal Government is printing in the form of Treasury bills, notes and bonds. But I anticipate that we will see a reversal in this rate trend and will watch rates move lower. A word of caution, it is unlikely that we will see rates moves to the levels we were at just a few weeks ago.

Currently homes have never been more affordable, first time homebuyers are eligible for an $8,000 tax credit and rates should begin to slide back down again. If you are in the market than you have a second chance at very affordable housing. This window won’t last long as current economic indicators reflect that rates could start moving higher as we move towards the end of the year. Rich Flanery CMPS® Certified Mortgage Planner

Feel free to contact Rich with mortgage questions about Estes Park. I am sure he would be happy to help. Unfortunately, he tells me he really doesn’t have a crystal ball, though.

If you ARE interested in pursuing Estes Park real estate, now is the time to do it. Give me a call or email and we can formulate a plan for you to take advantage of one of the best real estate buying environments in a long time.

There was an article in the Estes Park Trail Gazette today by Juley Harvey explaining all the benefits available to first time home buyers in Estes Park. I thought it was a great article explaining the many benefits available to first time home buyers and low income home buyers for our local area.

Some of the Highlights include

• First time home buyers (anyone who hasn’t owned a home in the last 3 years) can get a $8,000 tax credit if they buy a home now through the end of November. That’s $8,000 cash in your pocket next spring when you do your taxes.
• A Down Payment assistance program is available for a loan of up to $10,000 at 2% interest for 10 years through the Estes Park housing authority.
• There are two properties in Estes Park that have a mortgage assistance program for qualifying applicants. This program does not exclude you from the down payment assistance or the $8,000 tax credit. One property contains 1 bedroom condos and the other contains 2 and 3 bedroom condos.

For more information or questions about any of these programs, contact me or contact Rita Kuralja at the Estes Park Housing Authority and let her know I sent you.

Here are the 5 Myths:

1. Sellers today are desperate
2. Don’t buy before prices have bottomed
3. You can’t buy a home unless you have 20% down
4. Now’s the absolute worst time to sell
5. Before you refinance, shop around

Does this apply to real estate in Estes Park?

I am definitely seeing these myths permeating the attitudes of buyers and sellers the local Estes Park real estate market.

1. The majority of sellers in Estes Park are not desperate. In the video, Barbara Corcoran mentions the ratio that 1 in 10 Sellers are “desperate.” However, I would venture to say the ratio is more like 1 in 20 (or more) Sellers in Estes Park because of the large presence of 2nd home and vacation home owners. These people are usually financially capable of waiting for their price. Of course, there are properties available that are more desperate than others. (As a side note, I do keep a running list of distressed homes for sale. Contact me for more details.)
2. Prices in Estes Park are not declining as you can see in my market statistics commentary on this blog. In Estes Park, we are seeing a decrease in demand because people are fearful of prices dropping due to all the negative hype in other markets. I believe there is a lot of pent up demand waiting to buy property. As soon as demand starts to pick up again, I think we are going to see a huge jump in the number of homes sold in the next couple of years.
3. This is also true for Estes Park. While you may get the most favorable terms with 20% down, having less to put down does not eliminate you from buying a home. My recommendation is to talk to a mortgage broker and/or your bank about what programs you may qualify for before ruling out a home purchase.
4. While it may be difficult to sell a property in Estes Park right now, it is not impossible. Buyers are still buying property but they are only looking at property where they know they are “getting a good deal.” The most important thing in this market is to be a better value than your competition. In other words, price your property correctly or you may be waiting a very long time to sell. You need to be the most attractive home at the best price to get any attention from buyers.
5. My opinion is to go ahead and shop around but don’t forget about your current bank when considering a refinance. Be sure to weigh all costs involved including closing costs and other fees. Also be careful about how many inquiries you make that may count against your credit score.

Thanks to Ines Hegedus-Garcia of Miamism.com and Agent Genius Fame for the video. See her original post here.

Mortgage rates are down across the board. While you can find out why on any major financial news portal, you may be a little confused as to what it means to someone trying to buy a home or condo in Estes Park, Colorado.

FREE MONEY! Really?

Well not exactly…but pretty close. You won’t find anyone handing you a suitcase full of cash. However, when you are looking to finance real estate, a 1% change in mortgage rates roughly translates into a 10% change in the amount you can qualify for. As an example, the cost per month of financing $300,000 at 6% interest is roughly the same amount per month as financing $330,000 at 5% interest. Do the math for yourself on any online mortgage calculator or call your local mortgage broker.

This good news is viewed in one of two ways depending on your personality.

1. The spender says “I can qualify for a more expensive home.”
2. The saver says “Now I don’t have to pay as much for the home I want.”

Either way sounds like a great deal to me.

Current Mortgage Rates

While there has been a lot of news lately about the Fed making 4.5% interest rates available to home buyers, interest rates that low are not available…yet. Estes Park mortgage brokers are currently quoting phenomenal rates between 5% and 5.25%.

Lower interest rates are the best thing that can happen to you if you are considering purchasing real estate. It also reinforces what you are hearing every realtor across the nation who says “Now Is a great time to buy real estate.”

Buying a home or condo in Estes Park is no exception. Call or email me today to get started.

I had the privilege of sitting in on a panel discussion featuring practically ALL of the local Estes Park Mortgage Brokers. It was a lively discussion about how Estes Park property buyers are being affected by the national credit market upheaval.

Panelists included Sarah Walsh of First Home Mortgage, Rich Flanery of The Mortgage Center, Harriette Woodard of Estes Park Mortgages, Jose Santana of Blue Diamond Mortgage, Susan Raso of First City Mortgage Group, and Tim Ortiz of Home Financial

Below are some of the general topics covered during the session.

Can I still get a mortgage?

Several of the panelists stressed that money is still available to qualified buyers; however, there are more requirements and higher costs to the buyer in getting a mortgage funded. Recent changes in the way banks are doing business have increased the likelihood that problems are going to arise during the approval process.

Isn’t my credit score good enough?

Having a great credit score is no longer your golden ticket to getting a mortgage, although it does help. Expect to verify assets and income in multiple ways and be sure your credit history is as good as it can be. You may also have to put down more of a down payment in order to get a loan than you needed to in previous years. There are virtually no 100% loans available unless you qualify for a VA loan.

What else do I need to know?

Lenders are also looking much more critically at the property being mortgaged. They are being more strict with appraisals, the overall health of the homeowners associations, and the quality of the house itself depending on the program.

So, what do I do next?

If you are thinking about buying a home with financing, contact me as soon as possible. I’ll get you connected with a local lender who will help you sort out what options are available to you and what your best plan of action will be.  From there, we’ll go out and find you a property with the the best value in your price range. By working together, the three of us will make financing your home purchase as easy as possible.

I stumbled upon this phenomenal article on one of the real estate news sites that I follow and I really think you should take a look. This is by far the BEST commentary on what is going on our financial markets. Its easy to understand and make sense of the issues at hand and how they affect the real estate industry and ultimately the local Estes Park real estate market as well. Enjoy the article compliments of and credit to Jeff Corbett via Agent Genius real estate blog.

If you’ve been anywhere near national news web sites in the last several days, I’m sure you’ve at least seen or heard the names of Fannie and Freddie pop up once or twice. Just do a Google News search for Fannie and Freddie (or click the link since I already did all the hard work for you) and you’ll have plenty of reading material for the rest of the day. You might even learn a thing or two about the national mortgage market and how our mortgage system works.

I’ll spare you the boring details and get to the bottom line of what this means to buying a home in Estes Park. Mortgage rates are extremely low. Local mortgage broker Harriette Woodard of Estes Park Mortgages, is now quoting rates as low as 5.5% for qualified buyers which is big drop from previous weeks.

There is a lot of talk in the mortgage world trying to predict just how long these low rates are going to stick around. The only thing I can say is “there are no guarantees” in the mortgage world these days. If you have had thoughts about purchasing property and were worried about rates, NOW is the time to buy property. Give me a call or email and we can get started on the process of buying you a home today.

Seems like every other week, the mortgage rates are headed one way or another. I just had a conversation with one of my favorite mortgage brokers in town. Supposedly, the consensus in the mortgage industry is that rates will most likely be increasing over the next several months. Predictions are showing that rates may be settling around 7% to 8%. Now may be the time to hop off the fence and make a purchase while the rates are still in the 6% range.

If you didn’t read my previous post, I mentioned several other reasons why I think you should be jumping in the direction of buying property in Estes Park.