Foreclosure sales on the courthouse steps may be a thing of the past. Effective September 1, 2007, special rules were added to the steps required for Texas foreclosures. The new law gives the commissioner's court greater latitude in selecting a place for the foreclosure sale.

Previously, the trustee or trustees were required to conduct the sale at or near the courthouse. Now, commissioners may designate another location as long as it is public, reasonably near the courthouse, and easily accessible. New sales may not occur at the designated location until 90 days after the notice of sale is recorded.

The complete six page revised special repot, "A Homeowner's Rights Under Foreclosure" is available at:
http://www.christinawhipple.com/AHomeownersRightsUnderForeclosure.pdf

Christina Whipple

www.ChristinaWhipple.com

Christina@ChristinaWhipple.com

In a reaction to the mortgage credit cruch, as of January, 2008, Fannie Mae and Freddie Mac are changing their pricing models for high LTV (loan to value) loans. Any loan with a loan to value over 70% will be impacted by these changes. The amount of the price increase is dependent upon the borrower's credit score:

No credit score - add 2.00 discount points
Less than 620 - add 2.00 discount points
620-639 - add 1.75 discount points
640-659 - add 1.25 discount points
660-679 - add 0.75 discount point

This applies to all loans with terms greater than 15 years. In other words, lenders won't be able to quote a rate until they have an application with a credit report.

Another big change, all of the private mortgage insurance companies have announced that they will no longer insure loans above 95% loan to value if the credit score is below 620. This means that a large segment of the borrower population that has previously been able to obtain 100% finance loans will now be ineligible. Anyone with a credit score between 585 and 620 will now have to pay a minimum of 5% down payment. Keep in mind that for most conventional programs, the first 5% down must come from the borrower's own funds (no gifts). The My Community and Home Possible loans will still allow for gift funds.

Also, all PMI rates for LTVs over 95% have gone up, increasing the borrower's monthly payment. This is another disincentive to put less than 5% down.

FHA has not yet implemented these changes but Keep in mind that FHA also has big changes coming right around the corner. The proposed rule is due to go into effect January 1st. With it we will have credit scoring and tiered mortgage insurance premiums that are tied to the credit score.

Christina Whipple
www.ChristinaWhipple.com

With rising foreclosure rates comes a new scam that targets homebuyers looking for relief from financial woes. Some predatory lenders now offer what they call 'rescue loans,' but homebuyers are neither rescued nor do they actually receive loans." Homebuyers who purchased homes with subprime loans are especially vulnerable and predatory lenders are targeting subprime borrowers who have some equity built up in a home but who are having difficulty meeting monthly mortgage payments.

Homebuyers with impaired or nonexistent credit histories often turn to subprime loans and ARMS (adjustable rate mortgages) despite the higher interest rates and rising rate risks that comes with them. Once in financial trouble, it is difficult for these borrowers to refinance their mortgages to an affordable rate fixed mortgage.

Here is how the scam works. The homebuyer gets behind on mortgage payments. The predatory lender offers a "loan to get caught up" on the delinquent mortgage payments. In exchange for the rescue, the homeowner signs over the title to the predator, who promises that the homebuyer may remain in the home while paying rent.
The predator then sells the house to someone else, and the original homeowner gets an eviction notice and no longer owns the home. About a dozen states have passed laws designed to deter rescue loan fraud, but Texas is not one of them.
The scam is called a loan, but it is not. It really is a buy-out with a leaseback.

Charm pricing is very prevalent in our society.  A product is advertised at $9.99 rather than $10 or $97.50 rather than $100. When sellers back off the rounded number by a few cents or few dollars to make something look less expensive, it's referred to as "charm" pricing.

Such pricing make sense for items sold at retail for a set price. But what about real estate pricing? Does a seller gain anything by setting the listing price to seem lower than it actually is, such as $149,900 instead of $150,000?

Marcus Allen of Florida Atlantic University and William Dare of Oklahoma State University did the research. They studied a large sample of home sales and discovered that when charm pricing was used, homes tended to sell closer to the listing price than those offered at a rounded price.

They concluded that when sellers use charm pricing, buyer perceive that the listing price is close to their reserve price (the lowest amount they will accept). Sellers appear to indicate the price is fixed, and they will accept a minimum amount of bargaining.

On the other hand, sellers who list homes with a rounded price seem to be indicating there is more room for bargaining.  They expect this price to be a mere starting point for negotiation. They need a round figure only to position the property in the range of comparable properties.

Christina Whipple
www.ChristinaWhipple.com

The 2007 real estate market report from the Texas Real Estate Center is now available on my website. The report covers census data, employment and unemployment, major industries, business climate, education, transportation and infrastructure issues, growth patterns and much more. Click on the link below to download this report.

2007 San Antonio Market Report

Some highlights from this report for the San Antonio area are as follows...

The median price for a San Antonio residential home in 2006 was $140,100. The required income to qualify for this home was $35,324, while the median family income in San Antonio during 2006 was $53,992. This means that a residential home continues to be attainable for the average San Antonio family.

Christina Whipple
www.ChristinaWhipple.com

Subprime loans are high-interest rate loans that are offered to people who do not qualify for market rate mortgages. Often, traditional lenders have turned these borrowers away because of low credit ratings or other factors that suggest to traditional lenders that borrowers could default on their loans.  Since the start of 2007, foreclosures of subprime mortgages has risen rapidly leading to more than 36 subprime mortgage companies failing.

The subprime lending market's woes will impact all home buyers, not just those with "subprime" credit scores.  Underwriting guidelines are tightening and we are seeing decent rates for the 100% stated-income loan disappear. With foreclosures and shortsales increasing it is easy to "Monday morning quarterback" and say this should have been seen coming from a mile away.

However, stated income loans impact how various market segments obtain loans.  For instance, this has a huge impact on tipped income jobs.  The restaurant industry alone is a huge employer and it would be safe to assume that a good portion of these jobs are tipped income jobs.  Also, small business owners and commissioned contractors will be hit hard by these changes as well.

As Realtors, it is more important than ever to ensure that we understand these mortgage loan market changes and that we team up with a lender who has a good knowledge of how these changes will impact loan applicants. We will see more of the "teaser rates" advertised only to have the rug ripped from under the applicant and the rates raised when the loan goes to underwriting.

Also, this will not only impact buyers.  A good Realtor will need to go the extra mile to make sure buyers for our listings are qualified, asking the difficult credit questions, and that the buyer's agent realize the impact of the tightening credit changes.  Every listing offer with loan contingency should be scrutinized before consideration by the sellers!

Christina Whipple
www.ChristinaWhipple.com

Some home buyers will be receiving a bit of a tax break for the 2007 tax year thanks to new legislation that will make mortgage insurance (MI or PMI for private mortgage insurance) tax deductible.

PMI, is a type of insurance that insures the lender in case the buyer defaults on the loan. The lender usually requires PMI when the buyer has a down payment less than 20% of the asking price of the home.

Many homeowners will be eligible to deduct 100% of the PMI they paid in 2007 on thier federal tax returns.  This law applies to all new mortgage transactions between January 1, 2007 and December 31, 2007.  There are some other deductibility stupliations including:

• The tax deduction only applies to mortgages closed in 2007
• There are income limits.  A 100% deduction is applicable for gross incomes of $100,000 or less. 
• No tax deductions are available for gross incomes over $110,000.

Note that this law has only been approved for tax year 2007 and there is no guarantee that it will be renewed, but at least it will be a nice benefit to new homeowners for this year.

Christina Whipple
http://www.christinawhipple.com/

Texas Commissioner of Insurance, Mike Geeslin, ruled that all title insurance premium rates be lowered by 3.2 percent, across the board. Starting Feb. 1, 2007, all Texas title companies must follow the new, lower rates.

The decreasing premium rates are nothing new to Texas title companies. In 2004, the state ruled that premiums should drop by 6.5 percent. And, over the last eight years the rates have been cut by 17 percent, according to numbers from the Texas Department of Insurance.

Jerry Hagins, a spokesman with the Texas Department of Insurance, said the premiums are decreasing simply because of profits. “They’ve been paying out less than what they’re taking in,” Hagins said of the title companies.  The department staff analyzes title companies’ profit targets, expenses and losses when gathering data for each biennial rate hearing, he added.

As an example of cost savings, the title insurance for a $150,000 home under the current rates  would be $1,227 and will be $1,110 starting February 1, 2007 under the new rates.

Christina Whipple
http://www.ChristinaWhipple.com
Christina@ChrisitnaWhipple.com

When people find issues with their credit and try to act to make repairs, they can often make the situation worse by not understanding what variables go into their credit score. 

Although the exact formulas for calculating credit scores are not disclosed to the public, Fair Isaac has disclosed the following components with the approximate weighted contribution of each:

1. 35%,- payment history
2. 30% - the amount of debt, expressed as the ratio of current revolving debt (credit card balances) to total available revolving credit (credit limits)
3. 15% - length of credit history
4. 10% - types of credit used (installment, revolving, consumer finance)
5. 10% - recent credit inquiries and/or amount of credit obtained recently

The following are some of the common mistakes that people make when attempting to repair their credit.

Continue reading "Five Common Credit Repair Mistakes"

When it comes to applying for home loans, buyers now have options other than the traditional 15 and 30 year home mortgages with 40, and in some cases, 50 year home loans being offered.

The 30-year fixed-rate mortgage may still be the most common home loan in the country, but 40 year loans are picking up speed, accounting for 5 percent of all new mortgages in the United States, and 50 year loans are not far behind. But are they the most economical options for homeowners? While extending the period of the loan would seem to benefit the borrower, Dr. Harold Hunt of the Real Estate Center at Texas A&M University said that is not necessarily the case.

“The 40-year and 50-year loans have provided minimal affordability relief to homeowners in markets outside Texas,” Hunt said. “A significant number of these borrowers have originated interest-only loans or ‘exotic’ loans that can actually increase loan balances. These loans offer little advantage to Texas borrowers and should be viewed with skepticism by anyone intending to keep a mortgage ten years or less.”

Known as “hybrid ARM” loans, 40 and 50 year loans begin as fixed rate mortgages but are converted to an adjustable rate mortgage (ARM) after a specified term. For most 50 year loans, this happens five to ten years after the loan is made. In theory, this increase is intended to compensate for the lender’s money being tied up for a longer time, assuming the loan matures. In reality, the mortgage is usually refinanced or paid off when the home is sold, well before loan maturity.

Although the amount of interest paid over ten years or less is not appreciably different, the difference can add up with 40 and 50 year loans, making them substantially less effective than a 30 year loan at reducing an outstanding balance. On top of that, Hunt said they do little to lower monthly mortgage payments. “For a $100,000 loan, the largest reduction in monthly payments would be about $33,” he said.

Hunt said 40 year and 50 year loans make even less sense if a borrower intends to retain the mortgage more than ten years. A 30 year loan’s interest rate is locked in over the whole 30 year term while the 40 and 50 year loans must eventually convert to an ARM. “This exposes the borrower to the risk of future payment increases should interest rates rise above the level they were when the loan was originated,” Hunt said. “Considering today’s historically low interest rates, that risk is not insignificant.”


Source: Texas Real Estate Center - The Real Estate Center has been providing solutions through research for 35 years. Funded primarily by Texas real estate licensee fees, the Center was created by the state legislature to meet the needs of many audiences, including the real estate industry, instructors, researchers and the general public.

Christina Whipple
www.ChristinaWhipple.com

The 2006 real estate market report from the Texas Real Estate Center is now available on my website. The report covers census data, employment and unemployment, major industries, business climate, education, transportation and infrastructure issues, growth patterns and much more. Click on the link below to download this report.

2006 Real Estate Market Report

Some highlights from this report for the San Antonio area are as follows...

Average Home Prices in San AntonioThe median price for a San Antonio residential home in 2005 was $131,100. The required income to qualify for this home is $30,899 while the median family income in San Antonio during 2005 was $50,500. This means that a residential home is still attainable for the average San Antonio family.

Christina Whipple
www.ChristinaWhipple.com

I have some good news to share!

Effective, Monday, July 10, 2006, I joined Keller Williams Realty. Keller Williams Realty is one of the fastest growing real estate companies in North America and has been voted one of the best places to work.

I have had a great 12 year relationship with RE/MAX, but feel this move is right for me, my team, and our clients. With the change of real estate brokerages comes the opportunity to expand the services that I and my team may provide to you, our most valued clients.

Should you have any questions or comments, please don't hesitate to contact me.

Christina Whipple
Alamo Home Team
Keller William Realty

With all the recent debate over what businesses should be allowed on the San Antonio Riverwalk, I thought it might be interesting to review a short history of this San Antonio landmark.

The stream, known to the Payaya Indians as Yanaguana, was variously utilized over the first three centuries by Franciscan missionaries, explorers, soldiers, and even a settlement of Canary Islanders.

Through the late 1800s and early 1900s, San Antonio's increasing population and expanding boundaries experienced an increasing degree of problems brought about by flooding. In fact, if flood control measures had not been taken in the 1920s, later commercial development along the river would have never happened.

Engineers in 1919 struck an ominous chord with a study predicting that heavy flooding of the San Antonio River could damage the city severely. It was a warning that came through with devastating results.

On September 9, 1921, a cloudburst over the Olmos Basin and San Antonio River put 9 feet of water on Houston Street downtown, which resulted in flooding that killed 50 people and caused millions in property damage.

Expedient remedies were called for by many of the frightened residents and businessmen who wanted to ensure that such a tragedy would not reoccur. For three years after the calamity, flood control plans were worked on by city officials and the Army Corps of Engineers, whose plans called for straightening the river in several spots.

By 1926, the commissioners were receptive to the moral story presented to them two years earlier and the final flood control plan was approved. The plan would aid the river bend during periods of heavy rainfall by utilizing a new bypass channel. A floodgate and two dams helped accomplish this goal and the bypass channel was completed in 1929. The major feature of the plan, the building of Olmos Dam, was completed in 1927 north of the downtown area, in Olmos Basin.
In their desire to preserve the natural course of the river and prevent the demolition of historic sites called for in the plans, Miss Emily Edwards and a band of concerned women organized in March 1942 to form the San Antonio Conservation Society.

Since 1962, eight hotels and a major shopping center have been built and currently anchor positions on the River Walk. They opened in the following order: El Tropicano, 1962 (reopening in 1991 as the Holiday inn Riverwalk North); Hilton Palacio del Rio and Hotel La Posada, 1968 (La Posada reopening in 1970 as La Mansion del Rio); Travelodge an the River, 1971: Marriott Riverwalk and the Hyatt Regency San Antonio, 1979; Holiday Inn Riverwalk, 1987; and Marriott Rivercenter and Rivercenter Mall, 1988.

Restaurants of all sizes, shapes and culinary colors abound. More than 50 dining establishments are present along the River Walk. Casa Rio Restaurant was the first, opening in 1946. Every year brings in new prospects. Recently, the Hard Rock Cafe and Planet Hollywood have joined in the success.

Events produced by the Paseo del Rio Association are direct descendants of those envisioned by people who desired to use the waters of the San Antonio River in creative ways. These events periodically lend an additional ambiance to the River Walk.

During the past three years, there has been a global boom in housing prices, sales volume and construction. According to reports in the Wall Street Journal and other media, home prices in Shanghai surged 26 percent last year and 90 percent since 2000. In the past year, prices climbed 19 percent in Hong Kong, 48 percent in Bulgaria and France, 63 percent in Spain and nearly 100 percent in South Africa.

In the United States, the median home price rose nearly 33 percent during the past three years and 13 percent in 2005, according to the Office of Federal Housing Enterprise Oversight (OFHEO). The National Association of Realtors (NAR) reports the number of homes sold increased from 5.6 million in 2002 to an annualized level of nearly 7.1 million in 2005. The number of new single-family dwellings built increased 6.7 percent over the past year, from 1.531 million in 2004 to 1.635 in 2005.

Texas' housing boom reflects an active and growing housing market, but one experiencing a much slower rate of increase than the rest of the country. From 2002 to 2005, the Texas median-priced home increased from $124,500 to an estimated $136,500, a modest 9.6 percent. The average house price grew from $155,600 in 2002 to $174,100 in 2005, an 11.9 percent increase. MLS sales during that period increased from 201,422 to 265,886, a 32 percent increase.

National media have portrayed the rapid appreciation of housing as a price "bubble" that could suddenly and dramatically burst, leaving homeowners and the market reeling. But here in Texas, is a housing bubble fact or fiction? Could the housing market explode like an overinflated balloon? Probably not.

Several factors indicate that while Texas' housing market is doing well by historical standards, it is not experiencing a price bubble. Important indicators include:

*Texas' home prices have appreciated at rates significantly less than the national rate.
*Texas' current rate of home price increase is about equal to the "normal" rate of the past 15 years.
*Across the country and around the globe, lower mortgage interest rates and easy mortgage credit are primary reasons for home price increases.
*The median-price-to-median-family-income ratio in Texas is not disproportionate to the historical norm.
*Residential construction in the state has maintained a reasonable balance between supply and demand, avoiding a shortage or excess supply situation.
*The inventory of houses for sale is only slightly less than "normal," reflecting relative balance between supply and demand in the marketplace.
*The national housing bubble, to the extent it exists, appears to be localized to several states and specific metropolitan areas with extraordinarily high rates of home appreciation.

Markets continually change and adjust to the primary factors that impact them. Some factors become more important at certain times, and other factors may have surprising effects, either good or bad. The economic outlook for the rest of 2006 includes modestly higher interest rates and continued increases in employment and personal income levels. These factors are among the most important to the housing market and housing prices.

If the rate of new home construction continues at the current pace with small-to-modest cost increases, there is no reason to anticipate a housing shortage that would drive prices up. If mortgage interest rates increase, as is generally regarded as probable, sales volume may decline somewhat, leading to more modest price gains.

As the overheated coastal housing markets begin to cool, Texas may see increased investor enthusiasm as focus shifts to Texas where price appreciation has been more moderate.

Source: Texas Real Estate Center

It is common knowledge that housing in Texas is more affordable than in most other parts of the country. Just how much more affordable is clearer in light of changes to the Real Estate Center's Texas Housing Affordability Index (THAI). The Texas median-income family earns 79 percent more than necessary to acquire the median-priced Texas home at $129,100.

The equation for the affordability index is: Index = Median Family Income (MFI) Required Income to Qualify for a Conventional Purchase Mortgage (RI) Where: RI = Required Monthly Mortgage Payment × 12 Qualifying Ratio (QR)

The qualifying ratio is the lender-stipulated maximum ratio of monthly mortgage payment to gross monthly income allowed for a borrower to qualify for a mortgage loan. The required monthly mortgage payment is the amount the borrower will have to pay on an 80 percent, conventional mortgage at the effective interest rate for the area.

What this all means in generic terms is that it is easier for the average family living in Texas to purchase a home than for the average family living in most other areas of the country.

Over the next ten years, the San Antonio metropolitan statistical area will experience a 3.4 percent increase in employment each year while the population will grow at an average 2.7 percent annual rate over the same period. Personal income will jump 8 percent each year over the same period in the metro area - which encompasses Bexar, Comal, Guadalupe and Wilson counties, according to an Economic Forecast Study conducted by Jon Hockenyos with TXP Inc. in Austin on behalf of the city of San Antonio and Bexar County. Regionally, the population within the Interstate Highway 35 corridor - which stretches from San Antonio to Austin - will grow 2.3 percent annually over the next ten years, jobs will grow at a 2.8 percent annual rate, and personal income will grow at a 7.2 percent annual rate over the same period. TXP's Hockenyos expects economic development in the Alamo City to flourish once the Toyota Motor Manufacturing Texas Inc. plant opens this fall. This will create 2,000 factory jobs and another 2,000 on-site supplier jobs. Fort Sam Houston, because of the latest round of base realignments and closures, expects to gain 13,500 jobs and $800 million in new construction. The San Antonio area also should see the continued strength of the tourism, aerospace, biosciences and financial sectors. The report also notes that the "the total impact of relocation activity will add more than 25,000 jobs to the local economy over the next several years."

Source: San Antonio Business Journal

How does limited service representation affect a property's time on the market and selling price? Research sponsored by the Texas Real Estate Center revealed that limited service representation can indeed have significant impacts.

Limited service representation and discount brokerages in single-family residential markets have been widely scrutinized by the real estate industry. The Internet portal Yahoo! moved from the sixth most visited real estate website to second (behind realtor.com) through its series of partnerships with limited service and discount brokerages. Some of these brokerages offer consumers menu-based pricing, with fees for specific services, such as listing the property on a MLS system, rather than an across-the-board fee for full representation. Others advertise sharply lower commissions while still promising to provide consumers with all of the traditional services.

Limited Service Research Results
Most of the study results were statistically significant, indicating valid relationships exist between limited service representation and marketing performance (time to sale and sales price). The empirical results show that limited service listings sold for 1.7 percent less than typical exclusive-right-to-sell listings and took 17.1 percent longer to sell. Given that the typical discount offered by limited service brokers is approximately 2 percent, there does not appear to be any net gain to sellers using limited service representation.

For example, if the limited service broker charges a total 4 percent commission, then the commission plus the 1.7 percent lower price
is approximately equivalent to a 6 percent commission from the seller's perspective. This would indicate that limited service brokerage offers no dollar advantages to the seller over typical brokerage when using the exclusive right to sell contract.

If "time on maket" is taken into consideration as well, then limited service brokerages could actually COST the seller depending on the fixed costs of carrying the property on the market (mortgage, maintenance, etc...).

But what about agent experience?

Other research has shown that agents with limited service brokerages, either no service or menu-based-pricing, tend to be less experienced than those with traditional brokerages. The Texas Real Estate Center study revealed Sellers using listing agents with less than two years of experience received 1.1 percent less for a house compared with sellers who used agents with two to five years of experience, and the marketing time was 1.9 percent longer. While 1.1 percent may not seem to be a large amount, it represented more than $1,900 for the average property in the study. If the listing agent had more than five years of experience, the seller received 0.8 percent more than sellers who used agents with two to five years of experience, and the property sold 1.5 percent faster.

Source: Texas Real Estate Center

The Texas Homestead Exemption, in addition to providing legal protection regarding your home, can also save you money on your property tax bill. A homestead exemption reduces taxes by lowering a home's taxable value. All school districts offer a $5000 homestead exemption, and some taxing units offer a percentage exemption of up to 20% of a home's assessed value. Homeowners can lower their property taxes by applying for these exemptions for which they are eligible. You must OWN your own home and occupy it as your principal residence on January 1. You can have only ONE principal residence and ONE homestead exemption.

A special form is needed to apply for homestead exemptions. The form must be completed and returned to the appropriate appraisal office not before January 1 but no later than April 30. You can download the application from http://www.window.state.tx.us/taxinfo/taxforms/50-114.pdf, fill out the form, and send it in to your appraisal district.

Don't fall for misleading solicitations to file your homestead exemption. There is no fee to file a property-tax homestead exemption. Shortly after the purchase of a home in Texas, you might receive letters on official-looking stationery offering to file your homestead exemption for you for a fee. Even some people who have lived in Texas their entire lives confuse these letters as a form from a state agency requiring a mandatory fee.

The actual process is both free and easy so take a few minutes to save yourself hundreds of dollars on your tax bill.

In the past, homeowners who protested property-tax values and were unsatisfied with the Appraisal Review Board's (ARB) decision had only one recourse, appeal the ARB's decision to district court. But the cost of filing in district court could be high, with $5,000 being the average cost of filing.

But as of Jan. 1, 2006, a new, less-expensive, way to appeal the decision rendered by the appraisal review board is available: binding arbitration. Binding arbitration may only be used in cases concerning property values and you may not resort to arbitration if you were denied a tax exemption. Also, you may not use binding arbitration if the property is valued at more than one million dollars.

However, if you do go forward with binding arbitration, be aware that once a decision regarding your appraisal is reached the agreement is binding, hence the term, and must be accepted by the appraisal district and the property owner.

The process is farily simple. The property owner is responsible for paying a $500 deposit up front, which covers the cost of arbitration. Then, the two parties, homeowner and appraisal district, must agree on an arbitrator or one will be randomly selected by the Texas comptroller's office, which administers the appointment of arbitrators. The arbitrator will decide only the value of the property, and that decision is final. If the arbitrator's decision is closer to the value the property owner claimed, the property owner's deposit will be returned (less a $50 administrative fee). If the arbitrator decides a value nearer what the appraisal district claimed, then the $50 administrative fee and the arbitrator's fee is paid out of the property owner's deposit, and any remaining funds are then returned to the property owner.

"Credit Score Truths and Myths"

Your credit score is the single biggest factor in getting a new home loa! If your score is above 720, you can possibly qualify for a $1 million home with very little money down. If your score is below 500 and you have $1 million in the bank, you may have trouble qualifying for this exact same home. Your interest rate will certainly be different.

Credit scores are central to the loan process. Nearly every lender uses them.?The better your credit, the lower the risk to the bank, the lower your interest rate.

Most lenders use your FICO score to determine whether or not you qualify for a home. It's such an important issue that you and your clients?should understand the basics of the credit reporting system and the many myths surrounding it.

Credit scores give lenders a fast, objective and impartial snapshot of a person's credit risk based on their credit history.

That's why lenders use FICO credit scores when making credit decisions. The higher the individual's score, the lower the risk to lenders when extending new credit to that person. Its fast, easy, and, usually, effective.

Continue reading "Credit Score Truths and Myths"

�Over the past several months, I have been writing about the investment oportunities in the San Antonio residential real estate market. Statistics indicate that the next several years will see continued growth in this market segment as a result of population expansion. Today, I noticed that CNN Money has listed San Antonio as first for projected growth in the next two years.

CNN Money Article

For the next 2 years, the San Antonio market is projected to grow at between 7% and 8% annually. Please contact me if you are an investor looking for residential purchases in the San Antonio area.

Christina Whipple
www.ChristinaWhipple.com

The NSA has announced last April plans to establish a campus on the Far West Side of San Antonio with an estimated 1,500 new employees. Now, the campus in San Antonio eventually could accommodate 5,200 employees, expanding from its current 2,200. The NSA is spending $100 million to improve the old Sony plant at West Military Drive and Loop 410 and short term plans are to employ more than 3000 by the end of this year.

Ramiro Cavazos, the city's economic development director, said the NSA will be hiring or relocating up to 3,000 new employees on top of the ones it has here. Last year, the NSA began an aggressive national recruiting campaign, with the goal of hiring about 1,500 new employees a year through 2008.

Anyone looking for a rapidly growing real estate market need look no farther than San Antonio, Texas. As the nation's eighth largest city, San Antonio, is poised to move even higher in the rankings. The Alamo City had a 2004 population of more than 1.2 million, a four-year jump of 8 percent. The only other big city nationwide to gain more than 5 percent was Phoenix (Pop. 1.4 million). If San Antonio keeps growing at its current pace, it will pass San Diego, Calif., to become the seventh largest city by 2010.

All this population growth means that the real estate market continues to grow at a steady pace as well.� And, with the population predicted to double by 2020, real estate investments should continue to appreciate.

As of January 1, 2006, loan limits have changed for conventional, FHA, and VA mortgage loans in Bexar County (San Antoino) and the surrounding counties of� Kendall, Comal, and Guadalupe.

The new loan limits for Conventional loans are:

• Single Family - $417,000
• Two Family - $533,850
• Three Family - $645,300
• Four Family - $801,950

The VA limit has changed to $417,000.

FHA limits have changed as follows:

• Single Family - $200,160
• Two Family - $256,248
• Three Family - $309,744
• Four Family - $384,936

This should allow buyers more access to properties in and around San Antonio.

Starting in mid-2005, Texans became able to receive free credit reports from the three national credit reporting agencies, Equifax, Experian and TransUnion, along with ChoicePoint Inc., a provider of insurance data. The reports are part of a 2003 law passed by Congress to help consumers curb identity theft and errors affecting their credit score.

Before the Fair and Accurate Credit Transactions Act, consumers had to pay in order to receive a copy of their credit report. Consumers can now receive a free copy of their credit report from the agencies every 12 months.

Information contained on a credit report can impact both a mortgage loan decision as well as the mortgage loan rates and fees.

Credit reports can be viewed at www.annualcreditreport.com or by calling 877-322-8228. Free annual credit reports are also available by mail at: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. To receive an insurance report, go to www.choicetrust.com or call 866-312-8076.