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If you thought you were barred from buying a new house after a foreclosure or a short sale, the rules have changed. FHA has taken a big step toward acknowledging that the economy forced many responsible homeowners into default or bankruptcy.

Boomerang buyers are able to buy again a little sooner after FHA’s recent announcement of the Back to Work – Extenuating Circumstances exception. Homeowners that lost their homes due to a loss in employment or income, now have the ability to buy as soon as 12 months after a bankruptcy, foreclosure, short sale or a deed in lieu.

If you went through a foreclosure, you were put into a penalty box for 3 to 5 years in the past and couldn’t buy another FHA home during that period. Now under certain circumstances, you may be able to get an FHA loan again after just 12 months. The FHA went back and analyzed behaviors and found folks who lost their homes after extended unemployment or a massive drop in income don’t pose as much risk as previously thought.

If that’s your situation and you can show you’ve recovered financially and you agree to attend housing counseling you may have the normal wait of 3 to 5 years waived and you may be able to qualify again.

Meanwhile, with Fannie Mae loans, if you have a foreclosure, you are normally banned for 7 years from buying a new home. However, there was a different rule for short sales. If you cooperated with your lender, took care of your property, and got a short sale done, you were supposed to be banned only for 2 years.

However, here’s what happened. Fannie Mae discovered that the credit bureaus are so inaccurate with their data, that they were posting short sales as foreclosures on your credit report in error! They were putting you in a penalty box for 7 years and devastating your credit. So instead of facing the 2-year penalty…you were unjustly facing 7 years.

That’s why it’s so important that you go to review your credit reporting and see what’s on your reports with each of the credit bureaus.

Fannie Mae’s “fix” is that if you can provide documentation to prove you did a short sale (not a foreclosure), they’ll take you out of the penalty box after 24 months, not 84 months.

Some rebound buyers’ only credit impairment was the foreclosure. These buyers can repair their credit faster than would-be buyers whose credit history contains other issues. Either way, buyers must “get their credit house in order,” paying off or settling old accounts and bank judgments. Your first objective is that since you’re going to have to wait, make sure the rest of your credit is clean. A foreclosure remains on a credit report for seven years, though the negative impact will fade as time passes, according to myFICO.com, a website operated by the FICO credit-scoring company.

An established history of paying other bills on time can help. High current debt relative to income also can be a problem because lenders won’t approve a loan if the borrower’s debt-to-income ratio exceeds their guidelines.

The FHA requires a down payment of at least 3.5 percent of the purchase price. The minimum down payment for a conforming loan without mortgage insurance is 20 percent. The days of 100% loans are over. While you are repairing your credit you need to be saving for a down payment as well.

Filed under: 20 Blogs, Blog by Kim Bregman
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Spring cleaning is a way to demonstrate pride in ownership (or rentership). A home and its contents are investments; money spent on something you really love or really need (ideally both). When you take the time to clean thoroughly and properly, you can maintain and prolong the life of the item or finish for years. Further, it means you live in a cleaner and healthier home; less dust, dust mites, allergens, odors, and dirt.

Always start from the top and work your way down. Think about it like this: dust falls down (like rain or snow) so if you start at the top, you’ll never have to re-clean a surface (which is a time waster). It doesn’t make sense to clean the floors first and then dust the tabletops; you’ll just have to clean the floors again. Use gravity to your benefit and always work from top to bottom. It also helps you not miss anything!

General Spring Cleaning Tasks

These are a list of some of the things that need to be done around the house, and spring is a great time to do them. So often we don’t remember to do them, so let this be your wake-up call!

Tests and replacements:

Test smoke alarm

Test carbon monoxide alarm

Check flashlight batteries

Check fire extinguishers

Change air filters

Check all window screens for tears and repair or replace as required

Check every light switch plate, socket cover and door knob in the house (while you are at it, clean off all dirt and prints)

Other considerations:

Consider stripping, buffing or waxing floors (depending on the type of floor you have)

Consider having your outside windows professional cleaned (if a condo does not take care of this)

Consider having your ducts cleaned, should be done once every 5 years

Consider cleaning your BBQ and patio furniture to prepare for the upcoming warmer weather

Overall Spring Cleaning Chores:

Dust crown molding and baseboards and clean scuff marks

Dust ceiling corners

Dust/wash light fixtures and lamps

Dust ceiling fans

Wipe down doors and walls (Swiffer works great for removing all the dust)

Touch up paint

Vacuum or wash/dry clean window curtains and bedding

Wash or dust window blinds

Wash windows and screens inside and out

Dust books and bookcases

Polish wood furniture

Wipe down and vacuum furniture (clean the base and under cushions)

Condition leather furniture

Remove stains from upholstered furniture

Vacuum and wash lampshades

Deep clean hardwood, tile, linoleum, and carpet flooring

Shampoo carpet (DIY or schedule a professional)

Remove area rugs to shake out, then vacuum, then clean under them

Clean air vents

Dust around and BEHIND mirrors, picture frames, and wall hangings

Schedule chimney sweep

Schedule termite or pest control maintenance

Spring Clean Outside:

Sweep deck

Power wash deck

Stain deck

Power spray siding

Touch up paint trim, wood, doors, and shutters

Oil hurricane shutters

Power wash garage door and eaves of house

Clean outside door frames

Wipe away cobwebs

Shake out entry mat

Clean grill

Clean and repair gutters

Replace broken bricks, wood, or stone

Clean outdoor light fixtures

Clean outside patio furniture

Trim trees, bushes and shrubbery

Check and repair sprinklers

Inspect roof shingles

Clean outdoor and indoor trash cans

Clean out garage and sweep

Get the Spring Cleaning App at Google Store

Filed under: Blog by Kim Bregman
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When you initially set out to purchase a property, the real estate agent(s) and home seller will want to know you can actually afford to purchase the property. After all, if you can’t afford to buy it, you’ll be wasting everyone’s time. Aside from affordability concerns, you may find other issues that disqualify you from obtaining a mortgage. For these reasons, most real estate agents will require that you get pre-approved, at a minimum, before they even begin showing you prospective properties. Most agents have a mortgage contact they’ll likely refer to you to get the ball rolling. Once you are under contract you should shop around to find the best mortgage product that meets your needs.

What Is a Pre-Qualification?

If you choose to finance the home purchase with a mortgage, you’ll need to get pre-qualified first. A “pre-qualification” isn’t as robust as a pre-approval, but it’s a good first step to ensure you can purchase the home you desire. A pre-qualification is a pretty straightforward, simple check to see what you can afford based on your income/debt level, assets, down payment, employment history, perceived credit score, and so on. You can get pre-qualified very quickly and easily with a bank or mortgage broker.

A pre-qualification is simply supplying estimates without any verification of the information you provided and without a look at your credit score. That said, a pre-qualification, or pre-qual, is just a determination of what you’d likely qualify for if you made an offer and applied for a home loan. Most contracts will require that you get a loan approval within a designated time frame before the contract can be considered binding.

What Is a Pre-Approval?

A pre-approval, on the other hand, actually has legs. It’s a written, conditional commitment from a bank or mortgage lender that says you are pre-approved for the mortgage financing in question. It comes only after filling out a loan application, supplying verified income, asset, and employment documentation( if not retired), running credit, and underwriting the loan file. Acquiring a pre-approval shows the interested parties (sellers, agents) that you’re a committed buyer, increasing your chances of sealing the deal at the price you want. It will also show you how much house you can afford, not just an estimate. You need to be prepared to produce bank statements, pay stubs, tax returns and authorization to run a credit check as part of the pre-approval process. Once you provide all the required documentation and get the pre-approval letter from a bank or lender, it is typically valid for 60-90 days. Just note that things can change during that time, such as your credit score, so it’s not 100% guaranteed.

One of the key factors in either a pre-qualification or pre-approval is your “debit to income” ratio.

The “debt-to-income ratio“, or “DTI ratio” as it’s known in the industry, is the way a bank or lender determines what you can afford in the way of a mortgage payment. By dividing all of your monthly liabilities by your gross monthly income, they come up with a percentage. This figure is known as your DTI, and must fall under a certain percent in order to qualify for a mortgage.

The maximum debt-to-income ratio will vary by mortgage lender, loan program, and investor, but the number generally ranges between 40-50%.

A basic example of debt-to-income ratio:

$120,000 annual gross income as reported on your tax returns/pay stubs

Monthly liabilities: $3,500

Monthly income: $10,000

35% debt-to-income ratio

In this example, your debt-to-income ratio would be 35%. However, the debt-to-income ratio goes into greater detail and comes up with two separate percentages, one for all of your monthly liabilities versus income (back-end DTI ratio), and one for just your monthly housing payment (including taxes and insurance) versus income (front-end DTI ratio).

Front-End and Back-End Debt-to-Income Ratios

So in the above example, if your monthly housing payment makes up $2,000 of your $3,500 in monthly liabilities, your front-end DTI ratio would be 20%, and your back-end DTI ratio would be 35%. Many banks and lenders require both numbers to fall under a certain percentage, though the back-end DTI ratio is more important.You may see a debt-to-income requirement of say 30/45. Using the example from above, your front-end DTI ratio of 20% would be 10% below the 30% limit, and your back-end DTI ratio of 35% would also have 10% clearance, allowing you to qualify for the loan program, at least as far as income is concerned.

Max DTI Ratio for FHA and VA Loans

The max DTI for FHA loans that are manually underwritten is 31/43. However, for borrowers who qualify under the FHA’s Energy Efficient Homes (EEH), “stretch ratios” of 33/45 are used. These limits can be even higher if the borrower has compensating factors, such as a large down payment, accumulated savings, solid credit history, potential for increased earnings, and so on.

For VA loans, the maximum debt-to-income ratio is 41% (back-end). Again, as with FHA loans, if you have compensating factors and the lender allows it, you can exceed the 41% threshold.

How to Figure Out Your DTI Ratio

If you’d like to figure out your debt-to-income ratio, simply take your average gross annual income based on your last two tax returns and divide it by 12. Then add up all your monthly liabilities and divide that total by your monthly income and voila. Keep in mind that you’ll need a free credit report to accurately see what all your monthly payments are.

The credit report will show you what your minimum or monthly payment is for each trade line, which makes it simple to add them up. Some banks and lenders allow installment credit cards such as those issued by American Express to be excluded from the debt-to-income ratio as they often account for thousands of dollars a month, and likely get paid off in full monthly.

The debt-to-income ratio is a great way to find out how much house you can afford, as well as the maximum mortgage payment you qualify for. Simply add up all your liabilities and your proposed mortgage payment plus taxes and insurance to see what type of loan you can take out.

Filed under: 20 Blogs, Blog by Kim Bregman
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Below are the numbers for Luxury Properties priced above one million dollars for the past 30 days in the Boca Raton, Florida area. The single family home luxury market continues to move fast with multiple properties changing hands.

Luxury Single Family Homes

Total Properties Available 376

Price Range $1,025,000Â $25,000,000

Total Properties Pending 4

Total Properties Sold 17

Price Range $1,035,000Â – $4,831,450

Average Days on Market 145

Luxury Condominiums

Total Properties Available 60

Price Range $1,025,000 $13,950,000

Total Properties Pending 4

Total Properties Sold 4

Price Range $1,075,000 – $1,975,000

Average Days on Market 137

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Below are the numbers for Luxury Properties priced above one million dollars for the past 30 days in the Boca Raton, Florida area. The single family home luxury market is booming with several properties changing hands. Luxury condos are moving a little slower this month.

Luxury Single Family Homes

Total Properties Available 364

Price Range $1,022,819 $25,000,000

Total Properties Pending 29

Total Properties Sold 11

Price Range $1,100,000 $3,550,000

Average Days on Market 297

Luxury Condominiums

Total Properties Available 58

Price Range $1,025,000 $13,950,000

Total Properties Pending 4

Total Properties Sold 0

Filed under: Blog by Kim Bregman
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As 2013 draws to a close, it’s fairly clear that the real estate market has gained strength: home sales are up, prices have firmed, foreclosures are down and mortgage rates remain close to record lows.

Figures from the National Association of Realtors (NAR) show that September home values on average were 11.7 percent higher than a year earlier, the 10th consecutive month of double-digit, year-over-year, increases. NAR also reports that in the third quarter home prices increased in 144 out of 163 metropolitan statistical areas. Fifty-four areas had double-digit increases, and only 19 had price declines.

What we have seen during the past year are signs of a broad national recovery, says Ray Brousseau, executive vice president with Carrington Mortgage Services. Pent-up demand and a growing population are two factors that have contributed to generally increased home prices.

Interest rates
Interest rates also make ownership more attractive. According to Standard & Poors, the 30-year mortgage averaged 6.1 percent between 2002 and 2007. Over the longer term (the last 40 years), the historic average has been 8.6 percent.

In comparison, mortgage rates were near 4.25 percent in October 2013.

Lower rates over the past few years substantially impact affordability. For example, a $175,000 mortgage with an 8.6 percent interest rate has a monthly cost for principal and interest of $1,358 over 30 years. The same loan with a 4.5 percent interest rate has a monthly expense of $861. Though mortgage rates have increased modestly since June this year, rates remain low by historical standards.

Housing costs
While home prices have risen over the past year, they have haven’t reached the peaks seen in 2007. From August 2012 to August 2013, house prices rose 8.5 percent; however, home prices were still 9.4 percent below their April 2007 peak, according to the Federal Housing Finance Agency.

Rental costs
While buying has become more attractive in recent years, rental costs have risen.

Census Bureau data shows that the third-quarter vacancy rate was 8.3 percent down from 11.1 percent in 2009. With fewer vacancies, rental rates are rising, and, at the same time, rental options have become more limited.

When rental units are inexpensive and easily available, leasing can be an attractive choice. But as more people compete for rental units, rates tend to go up.

Home appreciation
When the value of real estate goes up, owners benefit from higher prices and increased equity. Tenants, on the other hand, have no ownership interest in the units they occupy. If values go up, it’s good news for their landlords.

We don’t know that the value of residential real estate will always appreciate, said Brousseau, But we do know that when home prices rise, the benefit goes to owners. We also know that only owners have the ability to reduce mortgage debt through amortization, the gradual reduction of mortgage principal over time. This means that over the long run, it becomes possible to own a home without any underlying debt. Home ownership, in turn, can be a way to save and has been an important source of household wealth for many generations.

Filed under: Blog by Kim Bregman
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Asheville’s all-encompassing music scene combines classical and rock, old and new. It’s one of the most vital pieces of the city’s culture, and one of the many reasons people travel to Asheville.

Here’s a list of some of the best music venues in Asheville, NC:

The Orange Peel Social Aid and Pleasure Club

Named one of the Top 5 Rock Clubs in the Country by Rolling Stone Magazine, the Orange Peel hosts a variety of national musical acts from all genres. It has also been featured in USA Today, Travel and Leisure Magazine, Cosmopolitan, GQ, and more. The smoke-free club features state of the art sound and lighting equipment rarely found in a club of its size. It underwent an expansion in 2009 to bring its capacity to 1,100 standing. The Orange Peel also added a smoking deck on the north side of the venue, and a private 75-person club called PULP on the lower level. Acts appearing at the venue have included the Smashing Pumpkins, Bob Dylan, Ben Harper, Damien Rice, My Morning Jacket, Cyndi Lauper, the Beastie Boys and Modest Mouse.

The U.S. Cellular Center

The Thomas Wolfe Auditorium, ExploreAsheville.com Arena, Exhibit Hall and Banquet Hall make up the U.S. Cellular Center. It has hosted thousands of events since first opening in 1974. Hosting sold-out shows by a variety of artists, the center serves as a major economic engine supporting the region. Western North Carolina’s preeminent multi-purpose event facility is managed by the city of Asheville and will continue to draw people to the area for years to come. The Asheville Symphony Orchestra is among those performing in Thomas Wolfe Auditorium. The Symphony performs seven full orchestra concerts per year. Each concert features a guest artist, old favorites, and recent works.

Tressa’s Downtown Jazz & Blues

Combine New Orleans elegance with live jazz, blues, soul, R&B, latin, funk, and dance, and youâ’ll have Tressa’s. It’s a nightclub experience unlike any other in the city. Try their single malt scotches, small batch bourbons, estate rums or famous martinis.

The Grey Eagle

Voted by touring musicians as one of the top 25 live music venues in the nation, The Grey Eagle is known for its excellent sound, great beer selection, and attentive audiences. The venue has been singled out by artists like Mason Jennings, Explosions in the Sky and the War on Drugs.

Asheville Music Hall

Asheville Music Hall shares a building with the One Stop Deli & Bar. One of the newest additions to the live music scene, the venue will host national, regional, and local bands.

Diana Wortham Theatre at Pack Place

This intimate, 500-seat theater has convenient off-street parking and numerous downtown restaurants within a block. The venue features live music, theater, and dance throughout the year by nationally recognized acts.

Emerald Lounge

Marketed as the Southeast’s premier intimate live music venue, the Emerald Lounge is located on Lexington Avenue. Here, you’ll have a large music hall experience in a small, local venue. All of the events are 21 and up unless otherwise noted.

Filed under: Blog by Kim Bregman
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Altamont Brewing Company
1042 Haywood Road
Asheville, NC 28806
Known locally as “the bar,” the Altamont offers weekly live music and special events. But that’s not why they’re there. It features a 7bbl brewery and 20 taps, including guest taps, a full liquor bar, wine and comprehensive bottle and can selection. This is not your average bar. Kayaks are stored behind the bar at the Altamont, cyclists can ride right in and dogs lounge around getting pretzel handouts. They are open from 2-2, seven days a week.
828.575.2400

Wedge Brewing Company
125 B. Roberts Street
Asheville, NC 28801
Beer is art at Wedge Brewing Company. They use the best available ingredients to brew the best beer possible. The brewery is located in the lower level of Wedge studios.
828.505.2792

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Moving can be an overwhelming experience; unfortunately it can also create opportunities for identity theft.

Whenever you change addresses, you leave yourself vulnerable to identity theft. However, if you know why you might be vulnerable and how thieves can use your move to their advantage, then you can ensure that these risks are addressed before you move from your home.

As most of us know, identity theft happens when someone gains access to personal information that they can then use to access your bank account, use your credit cards or prepare fake documents in your name. Moving often makes it easier for identity theft to occur: we leave information behind that others can use.

How to Prevent Identity Theft During a Move

1. Make a Change of Address Checklist: One of the easiest ways that someone can obtain your personal identity is through mail theft. Before you move, make sure you take the time to list all companies, institutions and subscriptions that you receive through the postal system. Try to think through every possible scenario and who might contact you through the mail, including your child’s school, former employers, banks, law offices, real estate agents, credit card companies, and magazine and newspaper subscriptions. The people who move into your prior residence will not necessarily steal your identity, but they will not be as careful about shredding your mail and mail just throw it away.

2. Properly Destroy Files and Records: When moving, it’s a good idea to get rid of files and records that you no longer need. However, if you do, make sure you properly shred documents. If you have highly sensitive information, such as credit card applications or bank statements, there are professional shredding companies who’ll dispose of materials properly. You can also purchase a home paper shredder that will shred items such as old credit cards as well.

3. Take Important Documents With You: If you have important documents to move, instead of packing them into the back of the moving truck, it’s a good idea to pack them carefully then take them with you when you travel to your new home. If you’re moving to another city or state by car and need to spend the night in a hotel, make sure you take the documents into the hotel room with you. You might also consider packing CDs or computers with you, especially if they contain sensitive material.

4. Hire Reputable Movers: One of the best ways to ensure that your things arrive at your new home without a problem is to hire reputable movers. After all, you are inviting them into your home and if these movers are going to pack your belongings for you, secure your important documents before their arrival.

5. Take a Thorough Home Inventory: If you know what you’ve packed and what the movers will be moving, then it’s easier to know what might be missing. A home inventory is a good way to keep track of your things and will come in handy if you need to make an insurance claim or to report a mover.

6. Manage Your Technology Inventory Closely: Many households now own multiple computers, cell phone, tablets, and other devices that contain sensitive material. It would be easy for one to be inadvertently misplaces or stolen. Make sure your devices stay with you in an unmarked packaging and that they are locked up at all times.

7. After the Move, Check-up on the Address Changes: Once you’ve moved, go back through your change of address list and contact the places that may pose a security risk, such as banks, credit card companies and previous employers. Ask if they have your new address and if mail has been rerouted.

Filed under: Blog by Kim Bregman
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Buying a home is probably the most important purchase you will ever make… these ten tips will help you better understand what you can expect from contract to closing.

1. Determine Your Needs

The process of purchasing a home can be especially daunting if you don’t take the time to determine your needs. A real estate professional will be able to best assist you if you are willing to answer a few important questions:

• What is your current lifestyle and how will that play into the neighborhood or community you choose? e.g. sports enthusiast that requires hiking trails within the neighborhood
• Size of home including bedrooms, bathrooms, and specialty rooms such as media or pool room.
• Style of home: Ranch vs. Two-Story and Tudor vs. Cape Cod
• Schools, Religious institutions, commute to work all influence the area you choose to focus on

2. Consider the Cost of Home ownership

There are various financial commitments to consider, most importantly how a new home will fit into your budget.

You need to ensure that you can afford the monthly mortgage payment, as well as any expenses including utilities, taxes, insurance, maintenance, and/or possible homeowner’s association fees.

3. Interview an Exclusive Buyer Agent

A Buyer’s Agent will share valuable and essential information with you, if known, such as:

• The seller’s reason for selling and timetable
• Length of time the home has been on the market
• Previous offers and counter offers for the property
• Strengths and weaknesses of the property
• Determining an offer price based on past comparable sales
• Locating suitable property not currently on the market

You owe it to yourself to be the most knowledgeable buyer you can be. You can ask a buyer’s agent for advice and assistance in setting your offering price and structuring the other terms of your offer. What’s more, you’ll have peace of mind knowing an advocate is working on your behalf to help you buy at the best possible terms.

Ask for references and listen to what other people have to say about their experiences with a particular agent. Ultimately, you want to find someone that knows your area, has a good grasp on current market conditions and that you feel comfortable with.

4. Decide if You Will Build or Buy Resale

Are you going to buy an existing home or build something new? There are pros and cons to both, with each a reflection of your lifestyle and needs.

This calls for thorough research to identify which of the above is beneficial to you as an aspiring homeowner.

5. Location, Location, Location

Location is one of the key factors to consider in any home purchase. Make sure that you buy a home in areas where the value of property is set to increase as opposed to those with low prices and high chances of stagnation.

6. Understand Mortgage Options

Speak with a mortgage professional about your options and make sure to share details about your current financial situation, including your monthly budget for a new home. They will be able to offer guidance on which loan program will work best for you.

7. The Benefits of a Home Inspection

A home inspector will inspect the home prior to purchase to examine for structural and safety issues. An inspection is not required, but a wise choice as it will determine if the home is structurally sound and wiring and pluming are up to code.

They will also check for safety hazards, including loose railings, rotted or damaged porch or entryway steps and broken windows.

8. Get Everything in Writing

The best way to protect yourself is to ensure that every part of your transaction is captured in writing. An example of this would be repairs the seller agrees to make prior to closing.

Your real estate professional is there to make certain those repairs are added to an addendum which becomes a part of the purchase agreement. You do not want to have a casual conversation with the seller that could be left to interpretation when it comes to the largest purchase you will probably ever make.

9. Finalize the Purchase

To avoid problems at the closing table, make sure you have a clear understanding of what to expect. Go through your loan details one last time so there are no surprises when it comes to interest rate, loan amount or mortgage term.

There will be a substantial amount of paperwork to sign so give yourself plenty of time to adequately review the details.

10. Home Improvements

Your home is a valuable asset. Once you close, continue to put aside money on a monthly basis for any necessary repairs or maintenance.

It’s also important to note that certain upgrades may contribute to lower insurance premiums. This makes it important for you to stay in touch with your real estate professional. They can provide guidance on value boosting renovations.

Filed under: 20 Blogs, Blog by Kim Bregman
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