Today, we would like to welcome Mary Steinmeyer, Certified Mortgage Lender, from Denver’s Mountain Crest Mortgage. She shares TeamCox Realtors’ positive outlook on the Denver housing market. 

Denver Real Estate Market Commentary

 

I understand why many potential first-time homebuyers are sitting back waiting for some good economic news before buying a home. I also know many home buyers are sitting back waiting for the "bottom". We are definitely in the middle of a historic economic crisis. Just watch the news — reports abound. I’ve heard our current climate compared to the Great Depression. For me from a real estate perspective, it reminds me of the savings and loan crisis of the late 1980s.

 

I purchased my first home during that period in 1990. As a 21-year old professional, I purchased a condo with a 7.5%ish interest rate for $36,000. In five years when the market had recovered, I sold that same property for $78,000 — giving me a down payment on a new house! A house a then sold 5 more years later for more than its asking price because we’d entered a "buyers market." A 10-year cycle that changes my financial situation. 

 

Now can I guarantee the same results today? No. No one can. But do we know that historically all markets cycle? Yes. And we are in a down cycle. The upside is ahead.

 

Now I can also tell you that historically Denver has entered the down cycle before the rest of the nation and also exited it sooner. So while nationally talk of recession abounds, there is good news for Denver.

• Thousands of jobs are being added throughout the state; check www.jobopenings.net for a complete list.
• The Metro Denver Economic Development Corporation is reporting:
• Denver job growth is 1.6% while the national average is 0.2%
• Denver-area employers added 3,800 jobs between July and August
• Education and Health Services are Denver’s fastest growing job sectors
• 32% of Denver area employers plan to hire
• Metro Denver’s foreclosure filings declined dramatically between July and August, down by 35% to 68% by county.

To quote the report "these more positive indicators suggest that the framework for stable housing markets could be in place. Market fundamentals — including home prices, invetory, and job growth — are already stronger in Metro Denver than they are nationwide."

In my opinion, it’s a great time to become a homeowner. Do buyers need to be cautious? Of course. Only work with licensed, reputable real estate agents and lenders who can help you navigate this market. The timing is good for the right purchase.

Mary Steinmeyer
Licensed MB100017382
Certified Mortgage Lender
(720) 339-0526
FAX (303) 583-8832
mary@marysteinmeyer.com
www.marysteinmeyer.com
 
Mountain Crest Mortgage
724 South Pearl Street
Denver, CO  80209
www.mountaincrest.com

Search for Denver Real Estate

If you have an established credit-worthy FICO score, there is definitely money available if you are looking to buy a home in the Denver real estate market. Yes, lending constraints have tightened, but we are confident in the working relationships that we have established with quality Denver lenders. Here is how I see it:

1. It is a fact that liquidity has tightened and some mortgage companies have had difficulties funding their loans. Correspondent lenders’ credit lines are shrinking, and mortgage brokers have less room to maneuver with wholesale lenders. If you are in the market to buy a home, you should work with an experienced real estate agent that has established relationships with well-capitalized lenders. It is essential that your funds will be there when needed at the closing.

2. As a borrower, you should always work with a lender that can accommodate all types of loans, including FHA, VA, Conforming and Non-Conforming loans. With the recent price increases with PMI (private mortgage insurance), FHA has become much more attractive than in years past. With recent MIP (FHA’s mortgage insurance premium) changes, higher credit score FHA buyers, even those with 10% down or more, may benefit by comparing an FHA loan with a similar conforming loan.

3. As a homebuyer you should get preapproved rather than just prequalified. With no assurances of what future mortgage industry changes will look like, many agents are insisting on a fully underwritten preapproval (subject to appraisal) before house hunting and presenting an offer. Likewise, sellers should always demand, before tying up their property for 30 days or more that a “preapproved” offer is being presented. Nobody benefits when a listing is “tied-up” to find out later that a “prequalified’ borrower’s underwriting terms have changed and, as a result, they no longer qualify for a loan.

4. Sellers, if mortgaging your next transaction, you should also get preapproved prior to listing your current home. With recent mortgage changes, you will want to know that you qualify for a new home loan before you sell your current residence.  We certainly would not want the experience of explaining to a home seller that you have to rent rather than buy and your current home is under contract!

If you have any questions concerning buying a home in the Denver metro area, please contact a TeamCox member at 303-400-6060.  We are always happy to answer your inquiries.

Search for Denver Real Estate

Mercury Companies Closes Several Well-Known Title Companies

TeamCox Realtors has learned that some well-known title companies closed on Tuesday, July 29th. The title companies, operating under the parent of Mercury Companies of Colorado, are located in Colorado, California, Arizona, Oregon, Nevada, and Texas. It has been reported that all of the companies, operating outside of Colorado, were closed at the end of the day and their employees were dismissed. Over the years TeamCox has interacted with many of these businesses, but none of our current clients are impacted. If you have a contract pending with any of these companies, it is urgent you contact your closer immediately to confirm that your money is protected. Again, none of the title companies operating in Colorado have closed.

If you are relocating into Colorado and have a closing, refinancing or bridge loan scheduled with one of the identified title companies, you may need to re-open title with a different title company that has not been affected with these closures. If you would like a title company referral, we will be happy to help. 

• American Heritage Title Agency, Inc.

• Arizona Title Agency, Inc.

• Financial Title Company

• First American Heritage Title Company

• Guardian Mortgage Documents, Inc.

• InvestorsTitle Company

• Lender’s First Choice Agency, Inc. (dba Lenders Choice Title Company in California)

• Mercury Exchange, Inc

• Mercury Settlement Services, Inc.

• Mercury Settlement Services of Utah

• Mercury Transaction Services, Inc.

• Security Title

• Guaranty Co.

• Title America, Inc.

• Title Guaranty Agency of Arizona, Inc

• Title Guaranty Agency of Colorado, Inc.

• United Title Company, Inc.

• United Title of Texas

• USA Digital Solutions, Inc

If you have any questions or concerns regarding these closures, please contact a TeamCox member at 303-400-6060. This is not a time to panic, but an opportunity to be diligent and take control of the situation.

Conforming loan limits may be increased at least on a temporary basis

There may be some good news ahead on the housing and mortgage front if certain initiatives remain within the current economic stimulus plan. Conforming loan limits may be increased at least on a temporary basis to as much as 125% of a median housing price or almost $730,000.  This could be a huge benefit for those buyers and refinance candidates looking for loans above the current conforming loan limit of $417,000. 

For more information on conforming loans in the Denver real estate market, please contact TeamCox Realtors.