2015 Real Estate Tip: Watch the rates!

Lower interest rates equal higher affordability, plain and simple. Experts predict a raise in rates by mid-2015, the 1st increase by the Federal Reserve since 2006.

Rates have been historically low for almost a decade, though I urge people not to take them for granted per below...

While home loans are predicted to remain below a super healthy 5%, this could drastically affect those who soon plan to purchase a car or who currently hold credit card balances.

Knowledge is power, folks. Financially plan your 2015 accordingly!

Read more here: http://goo.gl/AdKMch

Buyer Tip: Basic 2014 Loan Document Requirements for Home Buyers

 

The Spring real estate market has finally arrived, and Buyers who have been on the sidelines all winter long are beginning to act fast!

While presenting a contract to a Seller only requires a basic loan preapproval, a lender requires extensive documentation from a Buyer to actually process a new home loan upon contract acceptance.  Want to get ahead of the game?  Begin to compile these documents at the beginning of your house hunt! 

As inventory is currently at a historic low in St. Louis, often times a Buyer has to write a contract on the very same day it is listed or it is gone within hours!  This process doesn't leave Buyers with a lot of time to think or act.  Beginning to compile the documents required for verification of employment and income prior to writing a contract will save you a lot of time and headache.  You will be thankful that you did so after you find "the one", when focus is needed on important inspections and move-day details.

 
Below is a basic overview of the documents required of a 2014 Buyer per Andy House of PHH Mortgage (formerly Coldwell Banker Mortgage).  Depending on the complexity of the transaction, additional documents could be required.

Last 2 years W-2’s: 
If using college education as an alternative, a copy of the diploma and official transcript is necessary.
 
Last 2 months bank statements: 
All pages are required-  if the statement says 1 of 5, all 5 pages in required.
 
Last 2 months/quarterly investment account statement: 
Same as above.
 
If paid income by Social Security:  
Must provide the most recent award letter and proof of 2 months of income received on the bank statements.
 
If paid a pension or retirement:
Must provide a copy of the pension award letter and must have 3 years of continuation of the pension in order to count it.
 
 If self-employed:  
Must provide the last 2 years of tax returns.  All pages and schedules are required and must be signed and dated. 

 

There is a new ReStore location, St. Louis!

Exciting, exciting news for West County homeowners and investors!  Habitat for Humanity has opened a new ReStore location in Des Peres. A peek at my recent visit...

What is the ReStore?  Learn more HERE in  my past post! 

 

Steve and I popped in to check out the new store this week and left with 6 new stamped stepping stones for $3 TOTAL as compared to the normal $7/stone.  Wonderful deal, fabulous cause!

 

Reduce, reuse, recycle, and restore baby.

 

NITTY GRITTY:

 

ReStore Des Peres

2117 Sams Drive

Des Peres, MO 63131- behind the Sam's club on Manchester just west of 270.

314-678-4596

 

WEB: http://www.habitatstl.org/supportus/restore/ 

Refinance- a Realtor's Opinion & 5 Things Preventing You From Getting a Mortgage Refinance

Rates are still record low.  I have had numerous inquiries from friends and past clients in 2013 about the current condition of the lending industry and whether a refinance is possible or even worth the hassle.  A common misconception among those folks NOT in an industry that deals directly with lending institutions is that the system is broken.  That is so FAR from the case!

Money is flowing, the market is moving swiftly, and people are CASHING IN on the low interest rates.  That being said, WHO you choose to work with and your current financial status dramatically influences how successful you will be in the pursuit of a lower interest rate! 

There are many factors to consider: will the property appraise, do you have equity, due to lower value will you be forced to pay PMI, will you be in the property long enough OR is the rate LOW enough from your current rate to actually offset the closing costs.

My Best Advice: Please contact a Realtor before you begin the refi process and have all of your "ducks in a row" when you apply. First things first- what is your property worth?  A Realtor can provide you with concrete data.   At least in St. Louis, we can easily access your private and extensive tax records including your mortgage information.  Paired with your full neighborhood sales data, including which sales within your radius were distressed or foreclosures, an approximate amount of property equity is easily determined. THIS STEP IS VITAL to ensure whether an attempt at refi is "worth it" and most reputable agents do not mind assisting their friends, family, and clients with this information. 

My lender stories over the past 3 years is an entirely different blog post. Frankly, there are 2-3 banks that I will STRONGLY urge my clients not to use- and yes, they are names that you will recognize- as their backlog makes a timely & successful closing nearly impossible. The fact is: Realtors (and the Title Companies that we work hand-in-hand with) deal with lenders on a daily basis and know who is getting these loans pushed through and who is not. Period.   Trust me, we can save you many headaches!

Anyhoo, I stumbled upon this article a couple of days ago and felt compelled to share as it is SPOT ON.   Great advice via AOL Real Estate...

5 Things Preventing You From Getting a Mortgage Refinance

By Chris Birk on AOL Real Estate

Mortgage rates are beginning to creep up, but they're still well within the kind of range that makes longtime homeowners shake their heads in disbelief.  The average interest rate on a 30-year fixed-rate mortgage hit 3.63 percent for the week of March 10, marking the highest point since last summer.

So while a seller's market may be taking shape, it's still a great time to shop for a mortgage, especially a refinance. That's why it's so frustrating for homeowners who can't get on the bus.

So what's keeping you from getting a refinance loan right now? Here's a look at five of the most common culprits:

So-So Credit

Same as it ever was when it comes to mortgage lending -- you're going to need to meet a lender's qualifying credit score for a refinance, which in many cases will be higher than what you'd need for a purchase loan. For conventional refinancing, you're likely looking for at least a 740 score to really capitalize on current rates. The bar won't be quite so high if you're going after a government-backed option like an FHA or VA loan. Make no mistake: A loan program may not have a credit score requirement, but the lenders who actually issue loans certainly will. Right now, for example, VA lenders are generally looking for at least a 620 score. But you'll more than likely need at least a 640 to start the refinance conversation.

Your Home Is Underwater

Values are starting to rebound in some parts of the country, but a lower-than-anticipated appraisal remains a common refi-killer. Consumers who owe more than their home is worth know this all too well. Pursuing a traditional refinance is all but impossible for underwater homeowners -- and that explains why the government's special refinance program for distressed borrowers is absolutely booming. Refinances through the Home Affordable Refinance Program (HARP) topped 1 million in 2012, more than double the year prior. The HARP program helps underwater homeowners with Fannie Mae- and Freddie Mac-backed loans. It's possible for some lenders to process refinance applications without an appraisal (the VA's Streamline program is one example). But today that's a rare exception.

Not Enough Income

All indications are the economy is on the upswing. While that's good news for the nation, continued recovery doesn't suddenly put more money in your pocket. Many homeowners lost jobs or took pay cuts in the wake of the economic crisis. One missed mortgage payment can stymie a refinance application. Lenders will typically want to see 12 consecutive months of on-time payments. Diminished income can also make it tough to actually pay for the refinance, which like any mortgage loan comes with costs and fees. Self-employed homeowners will need at least 2 years of tax returns.

You Bought Big

Jumbo loans can present a unique set of refinance difficulties. These non-conforming loans typically require sterling credit and significant skin in the game to acquire. It can be especially tough when your $625,000 home has lost a third of its value. Jumbo homeowners may have to come to the closing table with cash in order to secure that lower rate.

Mortgage Insurance

Paying mortgage insurance can complicate your ability to secure a refinance. That's especially true for lender-paid mortgage insurance. Either form presents problems for the federal HARP program as well, although some lenders have loosened restrictions a bit in the last two years. If this is currently an obstacle, keep searching for a lender that will work with you.

CLOSED: 14308 Conway Meadows, #108 in Chesterfield

Congrats to my client, Phyllis, on this fantastic 2,300+ sq ft Fannie Mae-owned West County condo with 2 huge storage areas and TWO underground parking spaces!  

More information about the property can be found HERE.

Overall, positive news for the Missouri Real Estate Market...

Bankrate.com just released second quarter comparisons between 2011 and 2012 of median existing single-family home values.  We are seeing a rise in the bulk of the US which is fantastic news.

Here is how Missouri fared...

To check out how your hometown is holding up, click HERE.

Unique Property: The Junk Castle

I saw this story on CNN Money and found it fascinating! Look at what a high school art teacher managed to make from scraps and imagination...

Now THAT is repurposing!  It reminded me of the City Museum...

Hidden Gem: Elder's on Cherokee

I realized last night that it has been awhile since my last Hidden Gem post.  I love antique shops.  I love antiques.  Over the years, I have picked up some interesting items.  I honestly should do a post some day with a few of our unique finds (like the vintage steel "R" and "P" that I recently picked up from a local antique mall for the boys' rooms for $5 each )...  it would be fun.  Regardless, knowing my affinity towards these items, several clients/friends/city newcomers have asked my advice for the best local resource for antique furniture over the years . 

As I have said before on numerous occasions on the blog, I love old things. While my house is NOT a dusty old antique store by any means,  I like a mix of old and new.  

I grew up in a household loaded with old mahogany furniture, neat artifacts, and family heirlooms. I grew up the daughter of parents who loved auctions and old things, as well.  I appreciate classic craftsmanship.  I am drawn to handsome quality wood.  I prefer traditional design and lines. I boast a classic style, with an eclectic twist.

We have a decent mix of antiques in our house. Some things that we inherited, others that we have accumulated over the years.  I am a firm believer in that items just come into your life, often times when you are not looking for them.  Particularly with antiques, it seems when you seek... you rarely find.  Regardless, in a city of wonderful treasures including an entire neighborhood dedicated to the goodies of yesteryear...  I DO have a local favorite for furniture.

At the corner of Missouri and Cherokee, in the center of the infamous Antique Row...

Sits Elder's...

The nitty-gritty...

It is 3 full floors of antique goodness...

While they do offer collectibles and the occasional architectural artifact...

Elder's is unique among other antique stores, particularly on the Row, as they have an emphasis on furniture and boast an ENORMOUS amount of square footage to maintain a sizable inventory...

In fact, their inventory is HUGE and constantly changing. 

Elder's has an incredible price point range and while items are not as affordable as you would find at an estate sale or on Craigslist, they are still priced reasonably to sell quickly...

Simply, I can't resist a pop into Elder's when downtown.

On this particular trip, I sought unique bedside tables. While I didn't find what I was looking for on this trip, I look forward to returning soon to give it another try...

Closed: 4060 Ramona in St. Charles

Huge congrats to my client, Cliff!

On a sidenote: Cliff managed to lock a 30 yr fixed loan at 3.95% with Coldwell Banker Mortgage! 

Wow.  Outstanding. 

Hence, if looking to refi or purchase, the time to lock in your rate is NOW!  The deals are unprecedented, the rates are historically low.  Fantastic investment opportunities out there, particularly for first-time Buyers.  My advice: don't delay if contemplating a move.  Low rates typically provide a fairly small window.

2 MAJOR Tax Changes for 2012, Homeowners...

Primary Mortgage Insurance premiums for those with less than 20% equity in their property (PMI) and energy efficiency upgrades will no longer be considered tax deductible.

More information can be found HERE on the National Association of Realtors HouseLogic website.

2012 Homeowner Tax Deductions

Yep, it is that time again... tax time!  We can all agree- necessary evil.  That being said, the news is not all bad. 

Homeowners, particularly you first-timers-  the deductions now available to you as a homeowner will likely reduce your tax bill substantially. Particularly if you have been claiming the standard deduction up until now...  the extra write-offs as a result of owning a home will almost certainly make you an itemizer. Suddenly, the state taxes you pay and your charitable gifts will earn tax-saving deductions as well, which equals money back in your pocket.  *cha-ching*

Below are the most common real estate tax deductions. For more information about these tax incentives and to determine which ones you may qualify for, please consult  your tax advisor

Mortgage interest:

For most people, the biggest tax break from owning a home comes from deducting mortgage interest. Your lender will send you Form 1098 in January listing the mortgage interest you paid during the previous year. That is the amount you deduct on the Schedule A tax form. Be sure the 1098 includes any interest you paid from the date you closed on the home to the end of that month. This amount is listed on your settlement sheet for the home purchase. You can deduct it even if the lender does not include it on the Form 1098.

Mortgage Points:

When you buy a house, you may have had to pay "points" to the lender to obtain your mortgage or buy down your rate. This charge is usually expressed as a percentage of the loan amount. And, believe it or not, you may get to deduct the points even if the seller paid them for you as part of the deal. The deductible amount should also be shown on your 1098 form.

Real-estate property taxes:
You can also deduct the local property taxes you pay each year. In the year you purchase your residence, you likely reimbursed the seller for real estate taxes he or she had prepaid for time you actually owned the home. If so, that amount will be shown on your Hud-1 settlement sheet. Include this amount in your real-estate tax deduction. You can't deduct payments into your escrow account as real-estate taxes, as these deposits are simply money put aside to cover future tax payments. You can deduct only the actual real-estate tax payments made from the account by your lender.

Private mortgage insurance premiums:
For mortgage loans with a down payment of less than 20% of a home's cost usually include a premium for private mortgage insurance (PMI), an extra fee that protects the lender if the borrower fails to repay the loan. PMI premiums can be deducted by home buyers. This write-off phases out as income increases above $50,000 on married filing separate returns and above $100,000 on all other returns.

Home improvements:
Save receipts and records for all improvements you make to your home, such as landscaping, storm windows, fences, a new energy-efficient furnace and any additions. When you sell your home, the cost of the improvements is added to the purchase price of your home to determine the cost basis in your home for tax purposes.

Energy credits:
Some energy-saving home improvements to your principal residence can earn you an additional tax break in the form of an energy tax credit. To learn more visit: www.energytaxincentives.org

Tax-free profit on sale:
Another major benefit of owning a home is that the tax law allows you to shelter a large amount of profit from being taxed if certain conditions are met. If you are single and lived in the house for at least two of the five years before the sale, then up to $250,000 of profit is tax free. If you're married and file a joint return, up to $500,000 of the profit is tax free if you lived in the house as a primary home for two of the five years before the sale.

Just for Fun: Presidential Hopeful Homes

Yes, it is an election year and the political media bombardment has already begun. 

I saw this story on the Today show this AM and HAD to share! This is an insider's sneaky peek at the homes of some of the Presidential hopefuls. Very telling and an interesting subject matter, particularly in the midst of an economy where the housing market is also at the top of the daily headlines. Fascinating! 

I apologize in advance for the (annoying) advertisement at the beginning of this video...

Visit msnbc.com for breaking news, world news, and news about the economy

Yes, you read this correctly...

If you donate a vehicle to the Goodwill before the 1st of the year, you will receive 1 year of free movies, compliments of Wehrenberg Movie Theaters in addition to the standard tax deduction!  Vehicle donations benefit the St. Louis community by providing vocational rehabilitation services and job placement programs for those with barriers to employment.

More information about this donation program can be found HERE.

SOS: Bethlehem Lutheran Church in North St. Louis City

The continued decay and depopulation of North St. Louis City has been of the utmost concern here locally for some time, and is well-documented on popular local blogs like Built St. Louis. That being said, it is difficult to understand the extent of the problem until you actually hit the streets yourself and witness the amount of decrepit and abandoned historical buildings that abound.

Every time I pass by this church, the gothic Bethlehem Lutheran Church at Salisbury and North Florissant, it just screams out to me for help. Built in 1895 and just blocks from the rebounding Hyde Park neighborhood and a stone's throw from the Arch, it is just one of the many architectural treasures in danger of being lost…

Unique Property: Camp Eagle Island

As the economy remains fragile, the nation witnesses more and more interesting properties hitting the market. Thanks to one of my favorite websites, Curbed, for bringing this one to my attention...

That's right dear readers, bust out your camp songs and prepare for spooky ghost stories around the campfire, as this is your chance to own a late 1800's Adirondack style Girl Scout camp in upstate New York!

So fun.

According to the Curbed site:

Camp Eagle Island boasts a stone and timber main house with 10 bedrooms, 14 bathrooms, nine fireplaces, and 47,153 square feet—designed by noted Adirondack architect William L. Coulter. The private 31-acre island property sits on scenic Upper Saranac Lake in upstate New York.

The property was donated to the Girl Scout Council in 1938, where they operated the camp until 2009, when they were forced to close the doors. They are currently offering the property for sale for $3.75 million dollars. Recently, a committee has been formed named Friends of Eagle Island, who are attempting to raise enough money to save the memory-filled property.

Family Lives in 320-Square-Foot 'Shotgun Shack'

I love featuring unique properties on the blog! I stumbled upon this article and had to share, particularly as an interesting follow-up to my previous article regarding Generations Y's affinity towards smaller, more practical/green spaces.

2 years ago, Debra and her family lived in a 2,000sq ft home on over an acre of land. After her husband lost his job, they opted for an extreme choice, by purchasing a 320-square-foot shack for $15,000 cash

Early in their marriage, the couple had spent 9 years living abroad in very condensed spaces in South America. Recalling that living small hadn't felt like a sacrifice then, but rather a way to stay focused on what is important... they decided they wanted to get back to that simplicity.

Their custom-built "shotgun shack" includes a walk-in closet, conventional-sized appliances, and even a lofted bedroom for their son that, the family boasts, is big enough to host sleepovers. Amazing how far a little ingenuity can take you...

Free St. Louis Concert Calendar for 2011

It is that season again, St. Louis! Summer concert series have begun. They are free, family-friendly, and a wonderful way to enjoy good music under the stars. Every summer, the local Bikesafe's Blog is kind enough to compile a list of free Summer concerts by date in the St. Louis area. While it may not include every free local concert, it comes pretty darn close!

Hence, if you find your evening free... grab the kiddies, a blanket, a bottle of wine, and enjoy!

My friend, Karen Goodman over at Arch City Homes, also creates a phenomenal list every summer. She sections them out by location. Check her list out HERE. Fantastic resources for free family fun all summer long!

Weekend Happening: St. Louis Book Fair

The time for the St. Louis Book Fair has rolled back around! Woot! Woot

The Greater St. Louis Book Fair is one of the nation's oldest, largest, and most popular charity book sales, offering hundreds of thousands of books for sale. For over 60 years, book lovers and collectors have enjoyed bargain prices on a diverse and quality selection of new, gently-used and rare books.

Fair proceeds benefit local non-profit education and literacy programs.

If you have never attended this event, it is the ULTIMATE. Our family never misses it, as we are huge readers. The prices are ridiculously low and the selection is phenomenal.

Last year, we left with TWO FULL BOXES of maybe-read-once-as-mint hardbacks and novels for both me and the kids for a total of $25.00. Yes, the price of ONE new book. Amazing deals, environmentally friendly, and a wonderful cause.

NITTY GRITTY:

Where:

West County Mall
80 West County Center
St. Louis MO 63131
Lower Level of Macy's East Parking Garage

Schedule:

Thursday, 4/28: 4:00 pm - 9:30 pm
Auction Preview: 6:30 pm - 7:30 pm
Auction: 7:30 pm

Friday, 4/29: 10:00 am - 9:30 pm

Shopping for Persons with Disabilities 9:00 am - 10:00 am
10:00 am - 9:00 pm

Sunday, 5/1: 11:00 am - 6:00 pm***
Half-Price Day

Monday, 5/3: Non-Profit Day - Closed to Public 07:30 am - 10:00 am

Cost:

$10 admission for Opening Night / Auction

***********FREE ADMISSION all other days****************

Non-Profit Day is closed to the public and limited to pre-registered 501(c)(3) organizations.

DEAL ALERT: 20-40% off at 3 local Borders Bookstores

There is no doubt that consumers become more tight and resourceful during economic downturn, and that retailers feel the pinch as a result! The latest local casualty happened when Borders Bookstore announced that they were closing 200+ stores nationally as part of a Chapter 11 restructure.... Let's face it: in the day of the Internet and e-readers like Kindles... print media is a dying breed. Period. Add into the equation the HUGE savings at your fingertips found on online retail powerhouses like Amazon and Half.com. It is no wonder that the overhead of a huge retail store would be too high to continue operation?!

Sadly, 3 of the 9 local Borders locations including Chesterfield Mall, Mid Rivers Mall, and Manchester Road in West County were victims of the downsizing. As a result, they are clearing house. We took advantage of the major discounts over the weekend, up to 40% on some items, but are not happy as a Borders-loyal family...In my opinion, no online deal beats a visit to the bookstore to wander and explore the shelves. Though it looks like those days are soon over. If you have your eye on a book... the time to hit Borders is now. The deals are unparalleled.

Retail Tip: Shoes for the sole AND soul

Crocs...
No, they aren't fashionista footwear. Regardless, particularly if you have kids... you probably have a few pairs laying around the house. For all practical purposes, Crocs are great and tend to get a bad rap. Whether hitting the sand, dirt, grass, or water... Crocs keep your feet protected. They prevent slipping, they float in case you lose one in the water, AND they can be hosed off or put in the dishwasher when they get filthy. In that respect, despite their less fashionable appearance, they are fantastic and super comfortable! I have a pair for gardening and swear by them.

After the typical summer frenzy (and growth spurts), it is time for new Crocs. I always go to the Croc Outlet in the St. Louis Mills, as unlike the teeny Croc kiosks in most malls... they have every style and color. They also carry boots, Jibbitz, and other accessories. In my opinion, it is worth the extra drive. Tonight I made a discovery, however, that must be paid forward: Recycled Crocs!

Recycled Crocs, for get this, $5.00.

Yes, I said FIVE DOLLARS!

For those of you unaware, the normal retail price for a pair of Crocs is $30.00. I have no clue if the recycled Crocs ALWAYS sell for $5.00, though tonight at the St. Louis Mills... they are. More exciting than the price, however, is the program. Brilliant.

Program Details:
So, not only are these recycled Crocs good for the environment and pocket book... they are helping someone in need.

Win, win, WIN!

Note: SolesUnited is now known as Crocs Cares, and you can find more info HERE about how over 2.5 million pairs of shoes have been distributed via this program since 2007 to those in need in impoverished areas and disaster areas like Haiti. You can also find them on Facebook HERE.

My son's old full-retail Crocs (with a ton of miles on them)...

... and his new recycled pair:
This weekend I plan to gather all of the worn and outgrown Crocs in the house and deliver them BACK to the Crocs Outlet in the Mills, as they are a recycle collection store, as well. Love it.

NOTE: Just like any outlet store- colors and sizes are limited. Inventory changes constantly, as do prices. I found this deal this evening, so hurry if interested.