Heather Boos

Volatile VA Loan Rates

Heather Boos — Fri, 15 Feb 2008 04:04:00 GMT

In the past two weeks interest rates have dropped down to 5.35% and risen back up to 6% as of today causing a lot of stress to my clients. My clients don't understand why the mortgage rates are so volatile if the Federal Reserve is reducing their interest rates. To be honest I don't understand it either. Unfortunately many of the area lenders are taking the heat with upset purchasers who were hoping to get a 5.something rate learning that is not going to be the case. I feel for both the lenders who are trying to calm some very upset buyers and the purchasers who had been holding out thinking the rates would drop further only to be slapped inthe face with a raise in rates.

One lender that my clients have had good luck with is US BANK and Cara Latham. The US Bank website shows their updated rates so if you want to keep an eye on the interest rates for VA/FHA/or Conventional try this link:

https://customercare.fnfismd.com/usbank/rates/ratesheet.asp?src=homedropdown

It shows their updated "no point" rate as well as a 1 point buydown rate for many of their programs.

I hope that the rates sill steady themselves just under 6% for the sake of sanity - both for my clients and for my collegues in the mortgage field.

Termite Inspections - When's the best time?

Heather Boos — Tue, 29 Jan 2008 19:07:00 GMT

When I started in Real Estate as the assistant to a Realtor in Killeen, I was instructed that it was best not to spend our client's money until after they know for sure that they're going to buy the house. That means not ordering a new survey, pest inspection, appraisal etc. until after the buyer's option period was over and they were fully committed to purchasing their next home.

I was a party to too many transactions where the termite inspector was sent out to inspect the home a week before closing and found termites. The buyers were upset (mostly because they didn't understand the full implications or advantages of treating for termties) finding out a week before closing that the house they're purchasing has termites. The sellers were upset because there is an additional cost associated with the transaction that they are only finding out about a week before closing.

However, since I've become a Realtor myself I've adopted a new philosophy on the matter. Now - whenever I represent a buyer I STRONGLY advise that they hire a termite inspector during their option period. That way - if termites are a problem for the buyer they have the right to terminate the contract during the option period and not risk their earnest money. Termite inspections are only valid for 30 days so if your closing will take place more than 30 days from your option period, the buyer may have to purchase an additional termite inspection just prior to closing. Buyers need to decide what value they place on having this inspection completed while they have the opportunity to back out of the contract without reprocussions.

In Texas - termites infestation is considered a lender required repair. That means that the lender will require that the termites be treated before they will loan the buyer the money to buy the house. I talked to Steve with Killeen Pest Control the other day and he told me that once a home is treated for termites the chemicals used continue to prevent future termites well into the future. He explained that a home that's never had or been treated for termites may actually be more prone to termites in the future than a home that has been treated for past termites because of the preventative nature of the treating chemical. I didn't realize that. Although a termite treatment will offer prevention from termites for a homebuyer it's still important to evaluate the amount of termite damage if termites are found and decide whether it will need to be repaired to protect the structural integrity of the home in the future.

Warranty - What Warranty?

Heather Boos — Fri, 18 Jan 2008 20:19:00 GMT

I've recently attended a course regarding RSC's (Residential Service Contracts.) These are companies that are regulated by the Texas Real Estate Commission. They provide a warranty-like product to home-buyers. There are MANY different companies in Texas and each offer vastly different coverages. I keep a few different brochures for these companies in my office so that my buyer clients can read over each sample contract and choose the one that fits the items they're concerned about. The majority of these products DO NOT cover any pre-existing conditions. That is why it's very important to hire a property inspector to inspect the home prior to closing. One thing that I learned at this seminar was the importance of having your HVAC unit inspected prior to closing. The HVAC system is probably the most expensive component of your home and by far the component you would most want covered by a RSC. I was shocked to learn that even if a buyer has a property inspection, the RSC company may decline to cover a HVAC repair if the unit was not inspected by a HVAC technician prior to closing. Only an HVAC technician is licensed to open up and examine the evaporator coil and other components. If you have a problem with your HVAC unit after closing and the RSC company finds that the problem was pre-existing, they may not cover that very expensive HVAC repair/replacement. However if you hire a property inspector AND a HVAC technician to conduct inspections, you should be made aware of any repairs that will need to be made in order to provide full coverage from your RSC company. I have begun to make it common practice to suggest my buyer clients ask the sellers to have the HVAC cleaned and serviced and provide a report during the buyer's option period as a part of the contract.

Where to Start?

Heather Boos — Thu, 20 Sep 2007 20:00:00 GMT

I've been contimplating te beginning of a blog for HeatherSOLDit.com for some time now but I couldn't wrap my head around what information I might be able to provide for my current and future clients. Then I realized that there are plenty of real estate topics that I could ramble on about and if nobody reads it - well that's fine too. It will give me an outlet for all of these brewing ideas, thoughts or rants.

One that has been percolating for some time now is the market for affordable high quality new construction. Currently you can buy a 1342 square foot house in Killeen for $99,900. Just under the $100K mark that lenders love to use as a cutoff for folks prequalifying. However that 1342 square foot home is very plain. Vinyl flooring, sod only in the front yard, laminate countertops, no bells and certainly no whistles.

I would like to see a development of townhomes in the area. Smaller duplex-style homes sold individually each with their own yard and fence. A little patio to sit out on and some tile flooring and upgrades. Small yards to take care of and a shared wall but affordable and higher quality housing than what is currently being offered on the market.

I recently represented a builder in the area who had built some FANTASTIC duplexes. Full sprinkler, sod, upgraded floors, large closets, patios, 2 car garage, attic storage. They were small but they were NICE. These are the kind of homes I'm talking about. Those duplexes would sell on the market for around $170-$190K each. Divide that by 2 and you're talking about a NICE little home with lots of upgrades for $85-$95K. I would buy a nice home like that.

Most people in this area don't think well of duplex areas though. For the most part renters in investment duplex areas have no pride of ownership. You don't see renters plant flowers or maintain the yards well. In order to avoid the neighborhood being over-run by rental units and unsavory neighbors a strick set of deed restrictions would need to be in place. No cars on blocks, no wild paint colors (so the other half of your duplex doesn't get painted a crazy color), no investor owners, etc. Development of the deed restrictions would be up to the developer.

I don't have the funds or the resources to develop a project like this but I'm just putting it out there. That's how I'll start this Blog. I'll pop out an idea that's been brewing in my frazzled mind for months and see what happens. I don't mind if some developer steals my idea and runs with it. I can't do it myself and I'd love to se someone else do it so I could sell those cute little houses to my clients.

I welcome any comments or ideas that you may have.