Real Estate myth #2: The loan officer is your agent.

Here's a real estate 101 question for you:  Who does the loan officer work for?

Here's a hint:  it's not you.

Loan officers work for the bank.  Now I know that is kind of obvious, but the real point here is how that fact affects you.  Loan officers have a fiduciary responsiblity to the bank.  Their goal is to maximize the profits of the bank to the best of their ability.  The basic law of supply and demand kicks in here.  They try to borrow money at the lowest rates and lend money at the highest rates possible.  They negotiate their rates of interest on what they borrow.  You should do the same.

When it comes to obtaining a loan, shop around.  You can use the bank that you have always used, the one that mom and dad use, the one that has the prettiest building or advertising....but how do you know that their rates and terms are the best you can get?  The answer is by taking your potential business to at least three of them.  Compare apples to apples and see who gets you the best deal.  The really cool thing?  That comparison shopping is about to get even easier.

Beginning in 2010, all lenders will be required by federal law to use a standardized Good Faith Estimate form.  This form will outline the estimates for interest rates, origination charges, escrow information, settlement charges, and more.  The new GFE will tell you what charges can not change and what charges can change and by how much.  Some lenders are already using this form.

Most of the loan officers I know are upstanding, honest, and friendly.  You could trust them with your children, your house keys, and your money.  This is not a slam on any of them.  You just need to know that the loan officer is not there to represent you or to be your agent.  Only you can shop loans to find the best deal for you.  Don't rely on regulation to guard against ignorance.  Educate yourself and be prepared.

Holiday Festival of Light and other illuminated joy

I don't know about you, but I seem to be finding fewer Christmas lights glowing from rooftops this year. Folks might be trying to save some money by not plugging in the electronic cheer. That makes driving the neighborhoods less rewarding for those of us who like to load up in the front-wheel-drive sleigh, listen to Christmas music, and enjoy the wonderment that comes from exterior illumination.
**Special thanks to National Lampoon's Christmas Vacation for the allusions.

What we need is a strategy for finding the best Christmas light displays in and around Conway. I have a suggestion for your first stop. The "Holiday Festival of Light" that is in its fourth year at the Centennial Bank Soccer Park located about a mile west of Walmart on Dave Ward Dr. From six until nine nightly, you will find a mile of Christmas lights, music, and food. Santa is available for pictures with the kiddos, and there is a huge model train display sponsored by the Conway Model Railroad Club. The cost is $5 per carload, but you can get a season pass for $25 and $60 makes you a member and gets you all kinds of extra goodies.

I invite you to comment below with recommendations of neighborhoods, streets, or individual houses that have decorated themselves up right for the season. Please give a description of what we will find and directions on how to get there.

Rural Development to the rescue!

Been trying to figure out how to take advantage of the tax credit for new home buyers but having trouble coming up with the down payment?  A Rural Development loan may be your answer.  The USDA/RD describes RD loans this way,

"Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities."

Here are some of the details that you will need to know about RD loans (also known as Section 502 loans).  First, there is no down payment required with an RD loan.  However, there are income restrictions based upon the area where you wish to live.  You can see those income limits for Arkansas here.  You must also have a "reasonable" credit history.

Second, your lender must be approved by the USDA to process RD loans.

The following is taken from the USDA website:
    Approved lenders under the Single Family Housing Guaranteed Loan program include:

• Any State housing agency
• Lenders approved by:
• HUD for submission of applications for Federal Housing Mortgage Insurance or as an issuer of Ginnie Mae mortgage backed securities
• the U.S. Veterans Administration as a qualified mortgagee
• Fannie Mae for participation in family mortgage loans
• Freddie Mac for participation in family mortgage loans
• Any FCS (Farm Credit System) institution with direct lending authority 
• Any lender participating in other USDA Rural Development and/or Farm Service Agency guaranteed loan programs.

In addition, there are restrictions on the property you buy.  Here is a quote from the USDA website regarding approved properties:

"Under the Section 502 program, housing must be modest in size, design, and cost. Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. New Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards. Existing manufactured housing will not be guaranteed unless it is already financed with an HCFP direct or guaranteed loan or it is Real Estate Owned (REO) formerly secured by an HCFP direct or guaranteed loan."

For more information on RD loans or to view properties that may qualify for this type of loan, give me a call at 501.514.2319 or send email to Rodney@RodneyGetsResults.com

He giveth and taketh away

By now you probably know that the economy is not in the greatest shape. Some places in the country are completely upended while others are doing quite well. Here in Conway, we seem to have a mixed bag.

There are quite a few businesses that have shut their doors here, but, on the bright side, there are a few that have decided to hang their shingles in Conway. Of the ones that have recently closed, there are:

• Mickie's Bluefish Grill
• IC Corp
• San Francisco Bread Co

I'm sure the employees and patrons of these businesses will sorely miss them.

On the flip side, though, we have some big names moving in and to Conway.  The most famous, of course, is HP (set to bring about 1,200 jobs).  There are some other developments in the works, too.  Here are some high points of economic development in the City of Colleges:

• Arkansas Blue Cross and Blue Shield data center
• The Village at Hendrix
• Continued growth and development of retail space
• New restaurants like Logan's Steakhouse, Big John's Subs (located on Meadowlake and Donaghey), TGI Fridays, etc.
• Downtown Conway's continued success
• 501 Life magazine

"Take away my people, but leave my factories, and soon grass will grow on the factory floors. Take away my factories, but leave my people, and soon we will have a new and better factory.” - Andrew Carnegie

Little Rock Zoo info and Happy Thanksgiving!

This will be a short post...got to get ready for the Big Day tomorrow.

Here is some really good news. The Little Rock Zoo is giving a great deal on their membership rates. They will be selling their year-long passes at HALF-PRICE from November 27 through the end of the year!

The most expensive (and biggest) membership package is usually $95. In a couple of days, that rate will be $47.50.  I have my Christmas shopping done!

Here is a link to their website: littlerockzoo.com/ratesbenefits

Happy Thanksgiving to everybody!

Thanks, Rotarians!

I was blessed to be invited to the Conway Rotary Club for their weekly meeting today. Being that I am a full-fledged Kiwanian, I thought it would be fun to see how the other civic clubs handle themselves. I was very impressed by the people I met and how kind and friendly they all are.

Like most civic clubs, they have speakers from the community (who may not have anything to do with the Rotarians normally) come to speak about their fields of expertise. Today, the presentation was a bit different. Twenty years ago this month, women were first allowed to join the Rotarians. The speakers were three former female members who had key roles in the early days of Rotary welcoming women. It was enlightening to hear about the struggles and obstacles they overcame.

Thanks to the Rotarians for welcoming me into their meeting!

Conway 2025 (Conway2025.com)

One of the reasons I became a real estate agent is because I wanted to be a part of taking Conway into the future.  I have lived in this city since 1992 (with a couple of summer breaks during college notwithstanding), and I have never since wanted to live anywhere else.

All of us who call Conway home have been given a chance to voice our opinions about its future.  The Conway Chamber of Commerce has created a project called "Conway 2025" (the web address is Conway2025.com).  The purpose of this site is to bring attention to a survey in which all voting-age adults are invited to participate.  You will be asked your preferences on what the city leaders should focused on during the next 15 years.

This is an opportunity that you should not pass up.  It literally takes less than three minutes and can provide valuable insight to folks who make the "high-level" decisions.

Conway2025.com

Watch how Channel 7 News covered the endeavor:

11 Tiger Trail - NEW LISTING!

Beautiful home built in 2000 and in great condition!  This home will not be on the market long.  Three bed rooms, two full baths, a generously proportioned family room, and large eat-in kitchen.  Enjoy watching the wildlife from the elevated deck in the wooded backyard.

See pictures and all the details at 11tigertrail.rodneygetsresults.com

OK, yes, now....

NOW, the Home Buyers Tax Credit has been extended.  And there is some cool stuff in it.

Not only can new home buyers still get $8000 from Uncle Sam just for buying a house, but those folks who have owned a house in the past should sit up and pay attention, too.  You may be able to join the party.

Here's the skinny:  Everything remains the same for you if you have never owned a primary residence (or haven't in three years).  Just keep on procrastinating like you have been; you have more time.  I recommend you get moving before the end of April, though.  You must now be UNDER CONTRACT by April 30, 2010.  You must also close your sale by June 30, 2010.  That gives you 60 days to close which is double what you had the first go 'round.

OK, here comes the cool part.  People who HAVE owned a primary residence in recent years can get a tax credit of up to $6500 if you meet certain requirements.  The biggie is that you have to have lived in your house for a consecutive five of the last eight years.  Note that this tax break doesn't apply to home sales.  But, what you may consider is that you have closing costs when you sell your home, buyers of your current domicile might ask you to pay their closing costs, and, if you hire a REALTOR, you will have commissions to pay.  $6500 might go a long way to covering those costs.

I really doubt that we will get another hand-up from Congress in 2010.  If you are thinking of buying a house or selling your current residence, now might just be the time.  While I will not suggest that you make such large changes in your life for a simple tax benefit, I will say that you should consider it when thinking about your options.

There are some income limitations, time requirements, and what-not, so read the IRS's take on the whole thing here:
The Worker, Homeownership and Business Assistance Act of 2009

NO NO NO!! Not yet anyway.

The New Homebuyer Tax Credit HAS NOT BEEN EXTENDED!!   yet.

(sorry for shouting)

There was a huge amount of DISinformation disseminated over the weekend about the tax credit being extended.  There are so many people desiring that this happen that many of those people bought into the rumor without any verification at all.  They just believed the hype.

I think the tax incentive will be extended (possibly improved).  There are a few things that kind of need to happen first, though.  A bill needs to be written, get out of committee, voted on, passed and then 'passed' to the other side of Congress, voted on again, passed again, and signed by the President.  Just formalities, right?

Congress is what it is.  Sometimes they get it right and other times, not so much.  I will be sure to post here when the tax credit does incur some changes.  Stay tuned!