Waiting for rates to drop to buy? How about 0% for 12 months?

Free Interest For 12 Months On A Condo

Is this an April Fool's Joke? I thought so at first too, but it's not. The awesome people selling the condos over in The Madison at Village Green almost seem like the fools. Their new special financing program offers 0% for 12 months on a new condo!! Yes zero percent for 12 months on the purchase of a condo with only 3.5% down. This could save buyers thousands over the first year of the loan. More information and an example of the savings are at CCVHomes.com/Deals.

Top 10 list from Home Building industry

Great Stuff! Thanks Dale!

The Top 10 encouraging statements

regarding the home building industry today


Thanks to depreciation in housing prices and record low mortgage rates, housing at this point is more affordable than it has been in at least a generation.

Frank Anton – Hanley Wood CEO, April 2009


The latest encouraging signs came Wednesday, with the government reporting that orders for machinery and equipment posted surprising gains last month and that more buyers, lured by low prices, returned to the housing market.

Annya Shin and Renae Merle, LA Times, March 2009


Since we began tracking the data for the major MSA’s in 1981, there has never been a better time to buy a home.

John Burns – John Burns Real Estate Consulting, March 2009


There are some pieces of information that reconfirm that we are very near the bottom.

David Crowe – NAHB Chief Economist, March 2009


The upside is inventory slipped 31 percent year to year even with meager sales because construction is almost nonexistent. Smaller inventory is necessary for a correction.

Eugene James – Metrostudy Atlanta Division Director, February 2009


The number of newly issued residential building permits, ticked up 3% in February from January. Government data showed that sales of new single-family homes increased 4.7%, the first increase in the market in seven months.

Annya Shin and Renae Merle, LA Times, March 2009


I think we’re at a bottom now. A housing market turnaround should begin in June or July, led by existing homes because prices have plummeted. The new-home recovery will follow.

Steve Palm – President of SmartNumbers (Marietta) February 2009


. . . the signs that we’re reaching the bottom are clearly there. Prices for homes have gotten into a realm that is starting to make sense. You are starting to see the beginning of an increase in sales. You’re starting to see the basic signs that assets are getting back to a level that makes sense. When you add this all up, we’re moving through this.

Christopher Thornberg – UCLA’s Anderson Forecast economist, March 2009


Mortgage rates continue to fall, reaching their lowest level in nearly 40 years. The Fed’s overnight lending target rate remains at a range of 0.00% to 0.25%, which is the lowest level on record . . .

John Burns – John Burns Real Estate Consulting, March 2009


You Can Do It !

Dale Peek, Architect – Peek Design Group, March 2009

OK folks, it is going to take all of us encouraging one another if we are going to make an impact. I have talked with many of you and know you have some great ideas and insightful things to say – so don’t be shy - make a comment right here so we all can share in your positivity. This blog provides you a tremendous platform from which to share your wonderful wit and wisdom with hundreds of others who you would otherwise never be able to reach – so wow us with your good sense and your success stories so we can all be encouraged and enlightened and entertained (e3).

Dale Peek

President – Peek Design Group


8 Things You Absolutely Shouldn't Do Now That Your Mortgage Application Is In-Process

8 Things You Absolutely Shouldn't Do Now That Your Mortgage Application Is In-Process

8 things you should absolutely not do while your home loan is in processWith mortgage rates are hovering near all-time lows, lots of Americans are taking advantage of refinance and home buying opportunities.

The downside of today's unexpectedly-low rates, though, is that mortgage lenders are ill-equipped for the rush of new business.

As a result, the process of underwriting and approving new mortgage applications is taking some conforming lenders as long as 2 months to complete.

This is double the time needed as recently as six months ago.

Because there may be 60 days between the application date and the closing date, it's important for applicants to remember that mortgage approvals can be revoked at any time prior to funding.

As mortgage applicants, there are many events that are out of our control -- job security and health matters, for example. But there are also events that are within our control.

Knowing that mortgage approvals can be fragile, here are 8 things you should absolutely not do while your home loan is in process. It may be the difference between being approved by the bank, and being turned down.

  1. Don't buy a new car or trade-up to a bigger lease.
  2. Don't quit your job to change industries
  3. Don't switch from a salaried job to a heavily-commissioned job
  4. Don't transfer large sums of money between bank accounts
  5. Don't forget to pay your bills -- even the ones in dispute
  6. Don't open new credit cards -- even if you're getting 20% off
  7. Don't accept a cash gift without filing the proper "gift" paperwork
  8. Don't make random, undocumented deposits into your bank account

Now, avoiding these items may not be practical for everyone. For example, if your car lease is expiring and you need a larger vehicle, it doesn't mean you can't buy the car -- just check with your loan officer first to be sure the new payments won't "break" your approval.

The same goes for accepting cash gifts from parents. There's a right way and a wrong way to accept gifts and doing it the wrong way may prevent you from using the gift as a source of downpayment.

Mortgage lending is full of "gotchas" and with underwriting times stretching to 60 days, it's a lot more likely that a mortgage applicant will trip into one. Following these 8 rules, though, is a good start.


Watch out for Mortgage Rates when Gas Prices Rise

Watch Out For Mortgage Rates When Gas Prices Rise

Oil prices are climbingDon't look now but oil prices are climbing.

This should worry today's home buyers and would-be refinancers because some of the same forces that helped to push crude past $50 for the first time in 4 months also cause mortgage rates to rise.

March 18, the Federal Reserve committed an additional $1.15 trillion to support the economy.

Since the announcement, investors have questioned whether the Fed is purposefully spurring inflation. The Fed's total debt purchases now total $1.75 trillion.

And to finance its purchases, the Federal Reserve is printing new money, devaluing the U.S. dollar along the way. This then leads to inflation which, all things equal, causes oil prices to rise, gas prices to rise, and mortgage rates to go with them.

As we've seen the last few summers, oil prices and mortgages seem to touch their yearly high points while the weather is warmest.

(Image courtesy: The Wall Street Journal)