Not to be confused with the Forces of Darkness or The Force–though the definition may not be as far off as you might think–to “Countervail” is, according to Mr. Webster, “to exert force against an opposing and often bad or harmful force or influence”.

The Countervailing Forces I’m referring to are the interest rates of homes for sale. Specifically, we want to look at the quite low interest rates currently in play and the opposing force of “just slightly increased interest rates, like something as slight as 1/2 a percent”.

I know what some of you are thinking. Aren’t opposing forces supposed to be opposites? Extreme opposites, especially? Not necessarily.

Let me show you why even a small percentage is enough to separate the good, from the bad and the ugly.

On one side of the ledger are those who argue that home prices are going up. It’s true. I mean, I see how prices seem to be going up. What I don’t see is where inventory is coming into the market. What about Shadow Inventory, you say? There is no Shadow Inventory.

And anything that is added to the inventory of homes for sale is on the edges of town, out where home builders are going in. The point here is that these new homes are not in the sub-burbs.

On the other side of the ledger are those who stress that we don’t know how long interest rates will stay as low as they are right now.

Those are the two groups of people on either side of the fence. This is where the countervailing forces of interest rates–the rates now vs. the slightly increased rates of the future–comes in.

When the interest rate goes up even one-half of one percent, you lose a noteworthy amount of your home’s buying power. If you decide to wait and sell your house later, when the interest rates go up, the risk is that buyers will not be able to get the rate they are getting today.

Here’s a practical example of what I’m talking about:

•  Take a $200,000 home
• Bought with 4.5% interest
• With principal and interestThat’s $962/month in mortgage.

• That same home
• At 5% interest Is $1020/month.

Look at those two numbers. Imagine you’re the one looking to buy that home. See how the difference is significant in it’s impact on a buyer’s ability to buy your home?

If you’re the seller and that happens it may be harder to sell your home.

So when you see interest rates separated by 1/2 % and think, “Big deal.  I’d rather sell my home for even a half % more.  I’ll wait to sell”, remember this example of the countervailing forces.

Don’t fall for the bad and the ugly.
Be good and be smart.

Please spread the word. We have two open houses this weekend.

Saturday from noon until 3pm – 4729 N 76th Pl. in Scottsdale
This is a great single level home in Villa Monterey. Corner unit with rare side access gate to backyard. 2 bedrooms plus bonus den area. Updated kitchen with granite counter tops, built-in oven, smooth cook top, and eating area. Expansive living room huge window overlooking private yard. Huge master suite with updated bath. Private backyard with covered patio and mature citrus trees.

Drop by and say hello to Michelle Conley, the newest Get Your PHX team member.

Sunday from 11am to 2pm – 140 E Coronado Rd.

Villa del Coronado is one of the most sought after and unique co-op communities in Phoenix, steps away from museums, light rail, health clubs and restaurants. This 2 bedroom, 1.75 bath home has seen numerous improvements over recent years: opening up the living and dining rooms, UV protecting on the windows, renovating the kitchen a installing a beautiful master bathroom. Don’t miss the huge 5′ x 24′ living room balcony and the 5′ x 14′ off the master bedroom. Located in an elevator building, this unit is one of the few with a permitted full size washer and dryer and a detached garage! Cash buyers or seller may carry. All utilities and property taxes are included in the monthly HOA fee. This is perfect for refined downtown living.

Thank you to Wayne Rainey of monOrchid for hosting the June Get Your PHX. Special thanks to Michael Popescu of MojoTree for bringing the Pichuberries and to Dwayne Allen and Danielle Leoni of Rum Bar for contributing their brand new recipe for the Pichuberry Punch. Many folks walked out of this last event wondering where they could get that drink again. (I know I did.) Drop by and try this new drink at Rum Bar.

Thank you also to Jonathan and Erin Carroll of the Song Bird Tea and Coffee House for contributing to the food, the prizes and sharing their new space with us and to Troy Benjamin for his food creations using Pichuberries. Troy, I think you have a new calling.

This July 19th we are celebrating 180° Degree Automotive, which just celebrated its grand opening a brand new shop at 545 W Mariposa.

See the Facebook invite page here.

180° Automotive is a unique venture, started in another location in the Melrose District in 2009 by Bogi Lateiner, a former law student – turned celebrity mechanic. Bogi garnered a lot of attention in recent years because she is a female mechanic, business owner and all-around great lady. She has also managed to fit in time to co-star in the Velocity Channel’s auto-repair “MacGyver-like” problem-solving show “All Girls Garage.”

But as if that were not enough, we are dedicating this event to celebrate four other inspiring women business owners in CenPho. Why are we celebrating these five women? Because each and every one of them not only inspires us, but has also grown their respective businesses during the recession.

Heidi Abrahamson — Heidi is a recognized jewelry designer who has shown all over the United States and in Europe. Her jewelry is, as she says, “modern architecture for the body.” Heidi and her husband, Doug, own Phoenix Metro Retro just off 7th Ave and Hazelwood. Heidi recently got nation-wide attention for the cat hair jewelry that she created with Kate Benjamin.

Kate Benjamin — Kate is best known for Modern Cat Design, a newsletter, website and source for chique accessories and furniture for the modern cat and their people. In 2009, Kate launched Moderncat Studio, a line of modern cat products that includes handcrafted toys, beds and scratchers that are all carefully tested by Kate’s nine felines at their Phoenix, Ariz., home. Some of Kate’s chic creations were recently featured in an annual design episode of CBS Sunday Morning.

Christine Cassano — Christine is an artist and designer, who has taken the medium of concrete to a new level (come see the front counter at 180° Automotive). We know Christine because she is the inspiration behind the Phoenistivus Market publicity designs. Christine has taken up residence next to the 180° “compound”, where her work can be seen. Christine is one of those behind-the-scenes champions who helps drive the energy and connections in the business community in CenPho.

Tracy Perkins — Of Strawberry Hedgehog has proven that you CAN make vegan, plant-based bath products, which are attractive to men and women, alike. Further, Tracy has proven that these products are attractive to national retailers, such as Whole Foods.  Tracy also works out of the 180° Automotive neighborhood, where she makes her soaps in small batches by hand.

July 2012 Get Your PHX
Thursday, July 19th at 5:30
180° Automotive
545 W Mariposa St.,
Phoenix AZ 85013  Map it

Energize Phoenix (not to be confused with the ever creative Ignite Phoenix) and Phoenix Mayor Greg Stanton will unveil “Go Green Like Your Grocer“, a community energy efficiency showcase at AJ’s Fine Foods on Central Avenue and Camelback Road from 11 a.m. to 1 p.m.  this Saturday, June 30.

Why should you attend the Go Green Like Your Grocer event?

Other than hearing the Mayor’s announcement that rebates are doubled, up to $3,000, for the rest of the program?

“We are thrilled to showcase AJ’s commitment to energy efficiency and officially name them an Energize Phoenix Energy Saving Superhero,” said Mayor Stanton.  “Our goal is to encourage residents within the Energize Phoenix Corridor to complete a free home energy check-up so they can save money by saving energy and contribute to a sustainable community.”

What is Energize Phoenix?

“The city of Phoenix was awarded a $25 million federal grant from the U.S. Department of Energy Better Buildings Program and the American Recovery and Reinvestment Act (ARRA) to launch, in partnership with Arizona State University and Arizona Public Service, “Energize Phoenix,” a project that will save energy, create jobs and transform a diverse array of neighborhoods along a 10-mile stretch of the light rail line.” ~ energizephoenix.com

In addition to being a visible support of our great Phoenix community, applauding the energy saving efforts of Mayor Stanton, Energize Phoenix, and fine examples like AJ’s, you’ll be energizing your own awareness of the cool savings to be had this  monsoon season and through the year.

“Did I mention APS will be on-site giving away a free CFL bulb to attendees, as long as supplies last? Or that in a lot of cases double rebates will pay for 100% percent of energy efficiency project costs?” ~ Ken Clark 

(If you can quote yourself, you know you’re onto something good, right? 🙂

Energize Phoenix offers cash incentives and financing to help pay for energy saving projects for homes and businesses located within the Energize Phoenix Corridor, a 10-mile stretch (PDF) along the light rail line.

Get the full skinny in the Energize Phoenix Press Release.

Many of you know the role that monOrchid played in the establishment of First Fridays over 13 years ago, back when people still hosted raves and Clinton was still President.

You could not do First Friday without stopping first at monOrchid.

The recession slowed business for a while, but owner Wayne Rainey powered through with a rag tag fleet of artists, architects, designers and the like. Now he is announcing new additions and new incentives to his “creative  co-lab.”

First, for the uninitiated, a creative co-lab is a space where you can have office space at a great price and access to other folks in your industry. While you don’t necessarily need to be an award winning photographer, for instance (I’m not and I’m in here!), being here gives you access to folks with whom you can collaborate, market and create new ideas.

You also have free access to the conference room, wireless and a kitchen. Soon to come is a media room where you can print, cut, copy and touch-up. You can also have access to the industry standard cyclorama and event space.

The folks over at Co-Hoots have proven recently that there is a huge market demand for this and we all share the same vision for a creative hub in downtown.

So, what is new? First, the Songbird Coffee and Teahouse plans to open by July 9th, which will greatly increase foot traffic and give you the much-needed caffeine to get through your busy day.

Second, a bunch of us are moving in to help make this dream a reality: Get Your PHX, Stacey Champion and Cesar Chaves Design are the most recent.

Third, the massive loft spaces, which can be broken up in to affordable creative stalls, are available with a new price structure.

Finally, if you sign a contract between now and August 30th, you will get 25% off event space and studio rental for a year.

This is your chance to get inexpensive bricks and mortar in a reinvigorated downtown establishment.

See this link for floor plans, availability and prices.

Please call me at 602-456-9388 or ken@getyourphx.com for more information.

According to our friend Jeannie Bolger, Sr. Loan Officer for Nova Home Loans:

Back in April the Federal Housing Administration announced they were going to change the requirements for all FHA buyers with $1000 or more in collections–anyone with unsettled, unpaid, or unresolved disputes–must be paid in full.  The requirement was scheduled to start this Sunday, July 1st. But as of HUD’s June 15 Mortgagee Letter, they have rescinded the requirement.

What was the new July 1 requirement going to mean to home buyers who plan to use low-down-payment FHA financing, other than making it more difficult for everyone to get FHA loans? For one, it was going to complicate the process of qualifying for an FHA loan. (As if borrowers did already have enough problems with approval delays!). It would have likely reduced the qualifying amounts.

Unfortunately, many lenders wrongly pre-approve borrowers because the loan officer wasn’t paying close enough attention to things like these new, often overlooked collections requirements. This leads to borrowers getting denied on purchasing a home while they are still in escrow. Which means their earnest money is in danger of being lost.

All because of something most people are unaware  of that’s tucked away in their national credit bureau files: Medical bills, old student loans, retail purchases, any debts reported as unpaid. It wouldn’t have mattered if these debts were incorrectly reported to collection agencies, or if the borrower had currently high credit scores and income.

“Fortunately, these new collections requirements have been rescinded. The current guidelines are as follows”,  said Jennie Bolger.

Collections:

Manually Underwritten Loans

Collections indicate a borrower’s regard for credit obligations, and must be considered in the creditworthiness analysis. The lender must document reasons for approving a mortgage when the borrower has collection accounts. The borrower must explain, in writing, all collections. FHA does not require that collection accounts be paid off as a condition of mortgage approval.

TOTAL Scorecard Accept/Approve Recommendation

Collection accounts trigger neither an explanation requirement nor a hypothetical monthly payment to be used in qualifying borrowers. The presence of collection accounts in the borrower’s credit history already result in lowering the credit bureau scores used in TOTAL and, thus, no further information need be provided by the borrower.

Disputed Accounts:

TOTAL Scorecard Accept/Approve Recommendation

If the credit report reveals that the borrower is disputing any credit accounts or public records, the loan must be downgraded to a manual underwriting review by a DE underwriter–

–unless any of the following circumstances apply to the disputed account:

o It has a zero balance

o It’s marked as “paid in full” or “resolved”

o It’s less than $500 and more than 24-months old

Nova Home Loans has a Credit Services Department that can—for free–assist you with any Collection, Charge-off, Disputed Account and Judgment questions; and help you get your FHA/HUD loan approved.

Please call Jeannie Bolger, Sr. Loan Officer for assistance. 

Jeannie Bolger, Sr. Loan Officer

Licensed Mortgage Consultant #194387
Nova Home Loans
2850 E. Camelback Road, #270
Phoenix, AZ 85016
602-550-8674  Mobile
602-385-4812  Office
602-464-7322  Direct Fax
jeannie.bolger@novahomeloans.com

You heard the scoop here first: on June 14, 2012, nine days from today, Changing Hands Bookstore may officially be confirmed as a tenant of the former Beef Eaters Restaurant on 3rd Ave. and Camelback!

My fingers have been crossed since 2000 that this would happen (which explains this cramp I get sometimes, when the original Changing Hands on Mill Ave. in Tempe closed (the picture above is from their Mill Ave. bookmark). Ever since that first location closed, the only real estate for the bookstore has been the one on McClintock and Guadalupe, where the original bookstore expanded to back in 1998.

Maybe this time…?

I’m very hopeful. What a great thing Changing Hands would do for Phoenix with a location here! Co-owner/general manager, Cindy Dach, has done a wonderful, extraordinary job with her independent bookstore and was recognized early this year in an article by The Huffington Post  for being one of the main reasons there is such optimism in the Independent Bookstore Industry.

The Beef Eaters building is unique. As the website photos and home page describes it, it’s “Beef Eaters Restaurant in Phoenix Arizona is a rambling Arizona style adobe and heavy timber building with oak paneled walls, pitched beam ceilings, black leather booths, high wing-back chairs and linen table service. Trips to London added rare English art to its decor.

Beef Eaters Restaurant features two connected grand dining rooms and a cocktail-dining lounge. It has 4 private party and banquet rooms serving from 10 to 300, plus a quaint wine cellar table for 10. It has two bars, 4 fireplaces, 3 shaded patios and a large porte cochere drive entrance.

It opened in 1961 at 300 W. Camelback and was closed shortly before the passing of its 88-year-old owner & founder, Jay Newton, in 2006. Although the restaurant closed six years ago, its full website remains, floating like a ghost on the Internet.

In January of this year, Niki D’Andrea wrote about the history of Beef Eaters in an excellent Phoenix Magazine 2-page article called, “Steak. Out.”  Apparently, Jay Newton was a former sheep rancher in Utah who named his restaurant after a common nickname for Yeoman Warders (guards) at the Tower of London.

According to an April 14, 2012 Phoenix New Times article, the current real estate owner of the building had an offer from  Jon Kitchell and Lorenzo Perez of Venue Projects (they also helped develop Windsor and Churn in Phoenix) and both sides have 60 days to make a decision before it’s a done deal.

Is it June 14th, yet?

First, a quote from our resident expert, Sr. Loan Officer of Nova Home Loans, Jeannie Bolger:

Effective June 11, 2012–for  any FHA note that was endorsed by HUD on or before May 31^st, 2009–qualifies for reduced MIP on a Streamline Refinance (No Appraisal).  Upfront MIP goes to .01% and Annual MIP will be .55%. Current upfront MIP is 1.75% and the Annual is 1.25%. HUGE SAVINGS.

What? You don’t speak Klingon or Mortgagease?

This may help.

The Federal Housing Administration (FHA) is a branch of the Department of Housing and Urban Development (HUD). The FHA was developed during the Great Depression as as an effort to stimulate the real estate housing market. The main purpose of the FHA is to encourage home ownership in the United States. To accomplish this, the FHA insures mortgages against the default of borrowers. 

Do you have a current FHA loan (note) that was endorsed (or closed) by HUD prior to May 31, 2009? If so, your FHA loan qualifies for a significant reduction in your upfront Mortgage Insurance Premium (MIP; an insurance policy that compensates lenders/investors for losses in the event of a defaulted mortgage loan) on a Streamline Refinance (No Appraisal).

The current upfront MIP is 1.75%. Let’s say your FHA Streamline Refinance of your home is for a new $100,000 mortgage. The FHA will charge you $1,750 upfront on the mortgage insurance premium (MIP). You pay this at closing and the $1,750 payment  automatically rolls  into your new loan balance.

On June 11, the new upfront MIP will be  .01%  This is a HUGE SAVINGS. Using the $100,000 new mortgage example above, you would only pay $1 !

Also beginning June 11, 2012, the FHA will reduce it’s 1.25% annual MIP ($1,250) to just .55 % for certain FHA borrowers (or $550)–more than a 50% savings!

This is one way that FHA can make a real difference to help homeowners who are doing the right thing, paying their bills on time and want to take advantage of today’s low interest rates. By significantly reducing costs for these borrowers, we can make certain they cut their monthly mortgage burden which will benefit the housing market and the broader economy in the process,” said Federal Housing (FHA) Commissioner, Carol Galante. Read the full HUD Press Release here.

Read Jeannie Bolger’s quote at the top of this post, again, and you’ll be amazed at how much Klingon Mortgagease you speak!

REMEMBER: For home loans endorsed by HUD before May 31, 2009

PLEASE NOTE: Loan application may be started prior to June 11^th, but FHA case # must be ordered after June 11^th, 2012 to qualify for program and reduced MIP.

Call Jeannie Bolger, Sr. Loan Officer Nova Home Loans, for more information:  (602) 550-8674

[Photo: Images_of_Money]

Every so often I like to do a reminder on credit. It’s kinda important, ya know.

So, your credit score, also called a FICO score, is a number based on the information in your credit file that shows how likely you are to pay a loan back on time. You’ll want your number to be higher, rather than lower, because that show’s you’re  less risky (not to be confused with risqué).

Consumers with scores above 700 are usually charged pretty low rates, but those with scores above 760 are charged the lowest rates. So, what should you do if you have less than stellar credit? Jeannie Bolger at Nova Home Loans has come to the rescue with some of her top tips for improving your credit score.

PAY YOUR BILLS ON TIME
According to Jeannie, “The best way to raise your credit score is to develop a positive history of using credit to outweigh the old, bad credit history.”  If you’ve made any late payments, establishing or re-establishing a good track record of making timely payments will raise your score.

KEEP YOUR BALANCES LOW
Jeannie also suggests that you keep your current credit card balance at 30% or less than the maximum credit limit. High outstanding debt can affect your score and maxing out your credit cards could lower your average score by as much as 70 points.

OPT OUT
Visit www.optoutprescreen.com to tell the three major credit bureaus (Experian, Equifax and TransUnion) to stop selling your credit history. You’ll be able to opt of “pre-approved” credit card offers for a period of five years or indefinitely.

GET A SECURED CREDIT CARD
A secured credit card (one that requires you to make a deposit against the card’s credit limit) is a great way to develop a positive credit history. Jeannie cautions that you should not max it out. Instead, maintain a very small balance each month and be sure that the card reports to all three credit bureaus.

GET IT IN WRITING
If you’re paying off an old collection or charge-off, speak to the creditor about removing derogatory information on your credit report in exchange for payment. And don’t forget to get it in writing.

Jeannie Bolger can be reached at Nova Home Loans at jeannieb@novahomeloans.com or (602) 550-8674

Many people think “I’ll make an offer on a home and figure out later how I’ll pay for it.” But if you want your offer to be taken seriously and if you want to avoid complications when you close on the home, you must get pre-qualified before you start looking.”

See the image below of the form, below.

Pre-qualification quick but very important as you get ready to make offers. And in this market, where houses are selling in days, you can’t NOT have that pre-qualification form ready.

Why? Because there are 3 people who will benefit from your preapproval: You, your Agent, and the seller from whom you eventually buy a home.

Prequalification serves two primary purposes:

• It demonstrates to both you (and to sellers) how much house you can afford.
• It gives you the purchasing power to make a legitimate offer. (In fact, many financial institutions will not accept an offer on a house without a pre-qualification letter.)

But the benefits continue.

A mortgage loan prequalification is simply an estimate of how much house you can afford and how much money a lender would be willing to loan you. The best time to get a prequalification is right at the beginning of your home buying process, before you even start looking at houses. Realtors also prefer that you have a prequalification letter before they start showing houses so they know the price range you have qualified for.

And, in the event you’re competing with multiple offers on your dream home, most sellers will consider offers with prequalification letters before those without. In this market, that’s extra handy. Last year at this time there were about 6,000 active properties, today their are only about 2,000.

The Prequalification process involves either sitting down with a lender or talking with one on the phone, and providing information on your income, assets, debts, and a potential down payment amount. The lender would then provide you with a ballpark figure in writing of how much he thinks you could afford to pay for a monthly mortgage. There is no cost involved and there is no commitment on either side. This estimate is just helpful in helping you figure out if buying a home is a viable option, and if so, what your price range would probably be.

So if you’re thinking of buying a home in downtown phoenix, Call Jeannie! She’ll help you with the whole process.

Or call me for more information about the market: 602-456-9388.