Two encouraging bits of real estate news brightened my morning today.

First, pending home sales, based on contracts signed in August, jumped unexpectedly to the highest level since June 2007. According to Lawrence Yun, chief economist for the National Association of Realtors, this improvement was a result of improved affordability and lower interest rates.

In addition, the Mortgage Bankers Association reported that mortgage applications increased 2.2 percent last week due to lower home loan rates.

More pending home sales and loan applications mean more closed business. Paired with the expectation of freer credit moving forward and the $7,500 buyer tax credit, this is all promising news for the real estate industry.

"It pays to ask" and it also pays to tell. Pick up the phone and share this news with your prospects and clients. Let them know that now is the time to buy.

Let's move this market, 

Credit Update!

Do not believe everything you hear on the NEWS! You are witnessing a POLITICAL tug of war right now.

I have had several of my business partners (Agents) call and ask me if it is getting harder to lend money…here is the bottom-line, you can pass this information off to your clients & prospects if you wish.

FHA is financing 97% of the purchase price. SunTrust is STILL financing 95% second home. The Mortgage Insurance companies have put higher credit score requirements in place, but the biggest challenge would be on 2^nd home and investor properties with most of what I have been seeing for second homes credit scores being over 680…NO PROBLEM… otherwise we FHA for lower scores on primary home, and get a better rate anyway.

THE SKY IS NOT FALLING!

• USDA & VA is lending 100%. For information on Rural Development, feel free to call me. You will be surprised to know how much of our area qualifies for that product.

• Fannie & Freddie…Like I said, we still do 95% financing on both Primary & Second home

• Jumbo Money…Still available and strong.

I saw a report the other day that showed that the national sale price had only dropped 2.2% over the last couple months. (CNBC) That is great news, and shows a potential bottom.

courtesy of ed bucchino

According to Forbes magazine, second-home buyers can pick up a real deal these days. Interest rates are low, prices are affordable and there are plenty of available homes to choose from.

According to the National Association of Realtors (NAR), many consumers are taking advantage of the current buyer's market. In 2007, the combined total of vacation- and investment-home sales accounted for 33 percent of all existing- and new-homes sales. The most commonly cited reason for purchasing a second home was to use the home for vacation or as a family retreat.

Tips from Forbes to maximize your second-home investment include:

·         Consider the surroundings: Bike trails and hiking paths are a big draw for second-home buyers.

·         Look at the taxes: Income tax policies differ from state to state.

• Take distance into account: Second-homes that are within an easy drive can save money spent on gas.

• Look near resorts: Locales that are close to a popular resort area can have similar amenities at a lower price than homes considered part of the resort.

Think local: Parts of the country that are regional rather than national vacation spots can prove to be a bargain.