The MORTGAGE Factor: Getting back to the basics

QUICK FACT #1:

What our parents told us was true

At the height of the housing boom, many borrowers had to stretch to afford a house. In some cases agreeing to spend half their monthly earnings on their home and getting into the mortgage with 100% financing. We all know how that turned out. Now, reducing monthly payments to 31 percent is the goal that many financial advisors say is optimal and the amount that is being targeted in the new housing plan to help people who are in mortgage “trouble”. But is that a reasonable goal? And where did that number come from? Its roots may go back more than a century to company towns, where employers would collect a week’s wages for a month’s rent. In the 1920s, as homeownership became an option for more middle-class families, lenders adopted a similar standard: spend a quarter of a month’s income on housing. Though the number has inched up through the years, that general rule of thumb has stuck. I remember my dad advising me early in my college years that my housing costs could not exceed 25% of my pay….thanks dad, I should have listened to you!

Check out all the info at DallasRealEstate411.com!

QUICK FACT #2:
The 28/36 Rule

Financial planners agree that a figure around 30 percent is not a bad place to start. That usually leaves enough to pay for life’s many other costs. Given that the current economic crisis has turned a lot of financial assumptions on their head, it is probably wise to rethink how much of your income should go toward servicing the large debt that is truly homeownership. Here is where the old standard known as the “28/36 rule” comes in to play. Using that rule, households should spend no more than 28 percent of their gross income on housing costs — including mortgage payments, property taxes and insurance — and less than 36 percent on all debt. The total includes obligations like car payments, student loans, credit cards and medical debt.

QUICK FACT #3:
Now is the right time to revisit some of the lessons our parents and grandparents learned long ago.

HOW MUCH CAN I AFFORD? Your housing budget depends on your situation and priorities. One exercise I remember from school involves simple math and planning. Write down all of your expenses. Break them down into expenses that are fixed (utilities, groceries, auto expenses, insurance, etc.) and variable (everything else). Now, look at the variable costs…what am I willing to give up that could be reallocated toward housing?

DO THE MATH Before you start hitting open houses, sketch out a rough budget based on the 28 percent rule of thumb, using a simple mortgage calculator.

DOWN PAYMENT Currently, many consumers have no choice but to make a sizable down payment. If you do not, or cannot, it will cost you dearly in the form of a higher interest rate or fees. FHA is a great option and many times offers lower interest rates and lower down payment options for homes under $271,000.

TAXES Consider the tax savings associated with buying a home, but do not use it as an excuse to buy more than you can afford. Property taxes and mortgage interest are generally tax-deductible, but only if you itemize your deductions. Itemizing makes sense when your individual deductions exceed the standard deduction, which is $11,400 for married people filing jointly in 2009.

RESERVES Ideally, homeowners should have six months of net pay in the bank. But if you halve that figure and save three months of your take-home pay that generally translates into eight months of payments. That does not account for food and other necessities, but it does provide some cushion.

For more information on how to get started with your new mortgage, call CENTURY 21 Judge Fite Company at 800-451-8055, or visit C21JFC.com.

2-Minute 411 Video

Jim Fite, President of CENTURY 21 Judge Fite Company, talks about the mortgage factor in buying a home, and remembering the 28/36 rule.

Real Estate 411: 2-Minute Video with Jim Fite

CREDIT for Home Buyers and Home Sellers.

Jim Fite, President of CENTURY 21 Judge Fite Company shares his thoughts on CREDIT and ideas on how to help you get in the Driver's Seat!

How can I better manage my Credit Score so I can get a new home?

CREDIT for Home Buyers and Home Sellers

Real Estate 411 – FACTS

QUICK FACT #1: 1956 was a year for credit

QUICK FACT #2: So, what's the BIG deal?

QUICK FACT #3: 5 factors determine your score

Want the details on these QUICK FACTS? CLICK HERE!

Real Estate 411 – TIPS

It's a CREDIT driven society we live in, but don't let credit drive YOU

QUICK TIP #1: It's NOT error free

QUICK TIP #2: Get in the driver's seat!

QUICK TIP #3: Talk their language

Want the details on these QUICK TIPS? CLICK HERE!

2-Minute 411 with Jim Fite

Managing CREDIT: Old-school wisdom

Getting into major debt can mean BIG trouble and prevent you from being able to buy the home of your dreams. The task is learning how to effectively . . . CLICK HERE to read complete article.

To find a real estate professional or mortgage counselor who can help you address your credit issues, contact CENTURY 21 Judge Fite Company at 800-451-8055 or email 411@judgefite.com.

What is "Staging" anyway?

Click here to watch the video.

"Staging" is the latest buzzword in real estate, but it simply means to present your home in its best and most appealing light. If you are preparing your home to sell, it is to setup your home to appeal to prospective buyers and showcase the property in a way that makes buyers eager to purchase! In theory, "staging" isn't hard or costly, but in reality, many homeowners find it difficult because it's often hard to see something objectively when we love it. An easy way to see effectively "staged" homes is to visit decorated models. Decorating a model is expensive, but builders are willing to invest the cost because they understand just how well a "staged" home sells.

What Are the Benefits of Home Staging?

>> A staged home sells faster and for more money in most markets
>> Inspectors view a staged home as a home that has been well cared for
>> Appraisers are more likely to appraise a staged home at full value
>> You can't sell what is covered up in clutter
>> Homes that are staged, clean, and free of clutter have an immediate advantage in any market

WHAT IS THE ULTIMATE GOAL OF STAGING?
To sell your home faster at top dollar!

BASIC STAGING RULES
Clean - put the sparkle back!
Fix – anything broken, cracked or dripping
De-Clutter – get rid of 50%
Go Neutral – Neutral colors sell
De-Personalize – Remove objects your buyer can’t identify with

For more on Staging Your Home for Sale….visit http://www.century21judgefite.com/ or click here to download the “10 Easy Steps to Staging…” printable PDF.

2-Minute Video: How to Avoid Foreclosure

Real Estate 411: How to Avoid Foreclosure

We are spreading the word that “Real Estate is GREAT! at CENTURY 21 Judge Fite Company”. There is real estate to be bought and sold in the Dallas/Fort Worth Metroplex and we are doing it! Join us in spreading the word that real estate really is GREAT here in our market.

Each month we will deliver a new Real Estate 411 that will give you INFORMATION you need to know. REAL ESTATE 411 will deliver GOOD NEWS about what is happening here at CENTURY 21 Judge Fite Company and in our local real estate market....

For January we are looking at How to Avoid Foreclosure. If you have questions you would like to address to a real estate or mortgage professional, please call 800-451-8055, or visit
http://www.c21judgefite.com/.

Real Estate 411 - FACTS - Good news for families facing tough financial times

“Before foreclosures started going off the charts, substantive help in advance would have been almost inconceivable. Now it is part of servicers’ marching orders!”

QUICK FACT #1: Fannie Mae offers more flexibilityFannie Mae gives servicers more flexibility to help borrowers avoid foreclosure. On December 8, 2008, Fannie Mae announced it was giving mortgages servicers more flexibility and more loss mitigation options to minimize foreclosures. The changes will allow...click to read more QUICK FACTS.

Real Estate 411 - TIPS - Help is available now more than ever!

QUICK TIP #1: Communicate with your lender - Many people lose their homes because they are too ashamed to act, or they go into denial about the seriousness of the problem. To prevent foreclosure, be decisive and explore all solutions. Contact your lender at the number on your statement at the first sign of trouble—even if you have not missed a payment but you think you might have to in future. Your lender will make notes about your phone call in your account file. Reputable lenders and loan servicers should view your contact as an indication that you are committed to fixing the problem rather than avoiding it. The lender may begin discussing...click to read more QUICK TIPS.

2-Minute 411 with Jim Fite - Click here to watch the 2-minute 411 video!
Proactive tips that may save your home from foreclosure

1. Don't ignore the problem, don’t run, contact and talk to your lender. The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.
2. Contact your lender as soon as you realize that you have a problem. Lenders do not want your house. Today there are options to help borrowers through difficult financial times.
3. Open and respond to all mail from your lender. The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include important notice of pending legal action. Your failure to ...click to read complete article.

To find a real estate professional that can help you understand your mortgage options, contact:
CENTURY 21 Judge Fite Company800-451-8055 or email 411@judgefite.com.

2-Minute Video with Jim Fite: Real Estate 2010 and Beyond

Jim Fite, President of CENTURY 21 Judge Fite Company in Dallas/Fort Worth, talks about the real estate market today and where it's headed in 2010 and beyond.

For more information on Real Estate 2010 and Beyond, visit www.CENTURY21JudgeFite.com or call 800-451-8055 to find a professional real estate agent.

Real Estate 2010 and Beyond

Real Estate 411 - FACTS

Growing population and greater technology demands shape our FUTURE

FACTS for our FUTURE: The US population increases 1% per year, or 3 million annually¹. With over 164 million in total US employment by 2014², housing will remain a vital need and attaining it will continue to be the American Dream.
FACTS for our FUTURE: An estimated 75% of American Adults (age 18 and above) go online³. Increased dependency on a burgeoning Internet will continue as technologies become even more commonplace...click to read complete article.

Real Estate 411 - TIPS
Navigating into the FUTURE

TIPS: Real Estate investments are a “get-rich-slow” strategy. Using this process, one finds that the creation of wealth is not an event, but a life-long journey. In Real Estate 2010, there will be strong demographics for housing. The market will continue to offer more opportunities for buying and investing in real estate. Remember that the minimum holding time frame is a reasonable 5 to 10 years and should produce wonderful opportunities for the patient investor. Buy quality...click to read complete article.

2-Minute 411 with Jim Fite
Driving factors for the FUTURE

Real Estate will remain a smart investment in 2010 and Beyond. With the population growth expected to double in the United States by 2050, sound real estate investments will remain a wise choice for the savvy investor. Population growth points to a powerful trend and incentive for the accumulation of properties. In the US, our population increases by about 3 million per year. Real estate markets are local in nature. Within the United States there are many regional markets, each with their own unique growth characteristics...click to read complete article.

We are spreading the word that “Real Estate is GREAT! at CENTURY 21 Judge Fite Company”. There is real estate to be bought and sold in the Dallas/Fort Worth Metroplex and we are doing it! Join us in spreading the word that real estate really is GREAT here in our market. Each month we will deliver a new Real Estate 411 that will give you INFORMATION you need to know. REAL ESTATE 411 will deliver GOOD NEWS about what is happening here at CENTURY 21 Judge Fite Company and in our local real estate market. To join our subsriber list and have the Real Estate 411 delivered personally to your inbox, complete the sign-up form on the right and click submit! We promise not to share your information with any other company.

To find a real estate professional that can help you navigate through the masses of online real estate information, contact : CENTURY 21 Judge Fite Company 800-451-8055 or email 411@judgefite.com.

What does legacy mean to you when it comes to buying and selling real estate?

At Judge Fite Company we have been selling real estate since 1937 and over the years we have had the opportunity to provide you with a vast array of services. We have sold your home, facilitated the purchase of your home, insured your home, financed your home, and managed your properties. All this experience we bring to you today in a legacy of service, trust and professionalism that was started many years ago. Here at CENTURY 21 Judge Fite Company, the past really does represent the future!

We are also proud to bring a legacy of service to our industry. The Judge always said “a percentage of your time should be devoted to the up-building of your industry”. He taught and believed that with a passion, and in fact was known as the “Dean of Real Estate”. Judge B. Fite was recognized for his service and contribution to real estate and was awarded the Realtor of the Year award in 1970 by the Dallas Association of Realtors, and in 1987 by the Texas Association of Realtors. He also received the Rural Land Institute of Realtors “Realtor of the Year” award in 1984.

Part of the legacy of experience The Judge Fite Company offers are the prestigious awards that have been given to us, noting our dedication and service to our agents, our customers and our market:

* Realtor of the Year awarded to Jim Fite by the Greater Dallas Association of Realtors in 1987

* Realtor of the Year awarded to Jan Fite Miller by the Greater Dallas Association of Realtors in 1997

* CENTURY 21 Judge Fite Company was named one of the “Best Companies” in Texas by Texas Monthly Magazine in 2006 and 2007

* CENTURY 21 Judge Fite Company was the proud recipient of the coveted Century 21 Art Bartlett 2100 Cup in 2007

Our legacy does not stop here though. We continue to be a ground-breaking company, offering the latest in technology, marketing, training and career opportunities for our associates. We set the standard of real estate to be more than a just a real estate agent, but to be a real estate professional that makes a difference in YOUR life…our Mission Statement says it all: To Serve the Community, Develop People, Have Fun and Achieve Profits!

Call us today with your real estate needs and questions . . . experience the legacy!

800-451-8055 or log on to www.CENTURY21JudgeFite.com to search over 70,000 properties for sale in the North Texas area.

How can I build wealth with Real Estate?

Jim Fite, President of CENTURY 21 Judge Fite Company in Dallas / Fort Worth, shares his easy tips to building wealth through real estate investments in this month's 2-minute video, below. For more information on the Real Estate 411 campaign, click here.

Can Real Estate Help Me Build Wealth?

More millionaires are made through real estate than in any other industry!

FACT: 60% of homeowner’s wealth is from the equity they have built in their home.

FACT: The average homeowner’s net worth is 46 times the net worth of the average renter.

FACT: During the last three decades, home values have increased an average of more than 6.0% per year.

FACT: There have been more millionaires made through real estate than through any other wealth building medium anywhere in the world!

A wealth of housing data clearly demonstrates that housing is a good long-term investment. According to a study by the U.S. Department of Housing and Urban Development, 60 percent of a homeowner’s wealth is from the equity they have built in their home. A Federal Reserve study has shown that the average homeowner’s net worth is 46 times the net worth of the average renter.

You might be wondering if buying a home right now is a smart financial decision. The fact is, homeownership is key to building long-term wealth, no matter when someone buys. Studies show that, over time, most homeowners will steadily build equity. For example, during the past three decades, home values have increased an average of more than 6.0% per year*.

If you’re one of the five million people who list their home for sale this year, it has been shown that when it comes to selling a home, you’re better off using a real estate professional. Someone who can get the job done in half the time and can sell it for more than if you sold it on your own. That’s because CENTURY 21 Judge Fite Real Estate Associates are experts—they have extensive experience staging the home, marketing it, showing it and attracting qualified buyers to view it. They can explain options in your area that best fit your situation. Every market is different, contact a real estate professional before you embark on buying or selling real estate.

To find a real estate professional call us at 800-451-8055 or email 411@judgefite.com.

To search over 70,000 North Texas properties, or find out how you can start a career in real estate, log on to www.CENTURY21JudgeFite.com.

*Source: NAR existing home sales historic series.

How Can Technology Help in the Real Estate Process?

With 84% of home buyers searching online for homes, it is important - now more than ever - that real estate agents offer more than just a nice car and a mapsco! The new tech-savvy real estate agent understands all the new technology and can help you the consumer understand how it all works together to give you a better real estate experience. Finding the right agent is the key. When looking for a high-tech real estate professional, do your homework, contact several successful agents and prepare a list of questions to ask. Some of the questions should concern how involved the real estate agent is in the high-tech aspects of real estate.

1. A high-tech REAL ESTATE AGENT uses Email to keep in touch with their clients.

If you want to communicate with your agent via e-mail about houses for sale, purchase negotiations and the status of your real estate transaction, you obviously need an agent who not only is equipped to send and receive e-mail messages, but also actually uses e-mail. Even better would be an agent with a laptop computer and an e-mail system faster than dial-up.

2. A high-tech REAL ESTATE AGENT has great access to information.
It's no secret that the Web contains massive amounts of pertinent, informative and helpful information about real property and the business of real estate. A high-tech agent can not only help you understand all that info but also has access to neighborhood profiles, mortgage qualifying calculators, real estate news, markets trends reports and much more with a few mouse clicks.

3. A high-tech REAL ESTATE AGENT can show you educational Web sites.
First-time homebuyers, in particular, need to educate themselves about the wide world of home-buying and homeownership. A high-tech agent can recommend Web resources that explain everything from how to shop for a mortgage and why you need title insurance to how to pack and move your belongings.

4. A high-tech REAL ESTATE AGENT can help you house-hunt on the Web and by e-mail.
The days of squinting at tiny blurry pictures in a proprietary MLS book, then driving around for hours in the agent's car are fast coming to an end. A high-tech agent can point you to the best and biggest house-hunting Web sites and uses e-mail to zap new listings that meet your criteria directly to you. By working with a high-tech agent, you will be up to date on homes on the market.

5. A high-tech REAL ESTATE AGENT networks online with other high-tech agents.
E-mail is becoming a popular means of communication for real estate agents, which use it to promote their listings to one another and keep in touch with market developments. A high tech agent uses the web and its capabilities to keep you the buyer up to date and informed. Ever wonder why certain agents always seem one step ahead. The advantage is the web.

6. A high-tech REAL ESTATE AGENT will market your home on the web.
A high-tech real estate agent will market your home not on one website, but many. Through advertising partnerships in the cyberspace world, your real estate agent may have as many as 2, 4, 10, 15, 20 to 40 websites that show their listings! Mastering the process and keeping up with it all is what makes a high-tech REAL ESTATE AGENT so valuable. The results that good web marketing gets are what make this type of agent the better choice in most markets today.

If you need help finding the right agent, contact CENTURY 21 Judge Fite Company and let us help you find YOUR high-tech, high-touch real estate agent...for the RESULTS you deserve

800-451-8055, or log on to our website at http://www.c21judgefite.com/.

What are the REAL facts on the DFW real estate market?

There is a flurry of information out there about the real estate market, but most of the "BAD" news is coming from areas far far away from Dallas/Fort Worth. So what is really going on in the DFW market? Here is a look at the REAL FACTS:

#1 The DFW Economy is Strong
Fact: DFW & Houston Rank As The Most Affordable Housing Markets of the 20 Largest U.S. Cities - Housing affordability means that most families in North Texas can afford a bigger, nicer house. A household income near $60,000 likely is able to afford the median priced new home in DFW.
Fact: Texas Leads The U.S. In Job Growth - Job growth is the most important market driver in creating housing demand. Texas created 218,600 jobs in 2007.
Fact: DFW Ranks As the #2 Job Growth Market in the US - DFW’s diverse and strong economy produced 65,800 new jobs in 2007.
Fact: Job Growth Is Steady In DFW - DFW has maintained a steady production of new jobs.
Fact: Unemployment Is Low In DFW - The unemployment rate has steadily declined in DFW this decade. At year end 2007, the unemployment rate for DFW was a very low 4.2%.
Fact: DFW Is Now the 4th Largest Metropolitan Area In the United States - The DFW area adds 370 residents every day. The Dallas/Fort Worth area has been consistently growing for decades because of its central location, outstanding airport, low cost of living, housing affordability, pro-business environment and temperate climate. The Metroplex is the largest metro area in Texas and ranked #4 largest MSA in the nation at over 6 million in population
Fact: DFW Population Growth is soaring - Economy.com ranks DFW as the #1 growth market in the U.S. for 2006-2011 with over 630,000 estimated population growth.

#2 The Housing Market is Strong
Fact: DFW Is A Low Risk Market - This listing of the U.S. real estate markets ranks each on the likelihood for future price devaluation. DFW’s strong local economy, continued employment growth, housing affordability, stable home prices and steadily increasing home appreciation make it a very low risk real estate market.
Fact: Supply vs. Demand: Housing Market Returning to Balance Levels - Builders slowed new home starts (supply) by 36% in 2007. Closings (demand) fell by only 17% in 2007. Builders are now closing about 7,500 more houses per year than they are starting. With the slowdown in new construction, the supply of new homes will tighten in the months ahead. PEOPLE ARE TAKING ADVANTAGE OF DEALS!
Fact: No Housing Bubble In DFW - Unlike many other markets in the U.S., DFW has not experienced the massive appreciation and then depreciation of housing values. Housing appreciation has been slow and steady in DFW
Fact: DFW is Not Experiencing Price Declines Seen In Many Coastal Markets - The 20 City Composite Index fell 8.9% for the 12-month period ended December, 2007. DFW displayed more stable house prices with a year-over-year change of -2.4%
Fact: Texas Has Moderate Price Appreciation - Texas has maintained steady 6.3% house price appreciation while coastal markets have lost double digit percentages of their home’s value.
Fact: DFW Median New Home Price Continues to Escalate - Despite competitive market conditions, the base price of new homes continues to increase in DFW, now over $200,000.
Fact: DFW Still Affordable - Average Price of a 2,200 sf house with 4 bedrooms, 2.5 baths, family room, 2-car garage, DFW housing remains affordable compared to the rest of the U.S.

For more information on the local real estate market and to view all North Texas properties for sale, log on to www.CENTURY21JudgeFite.com.

Also, watch the 2-Minute 411 video with Jim Fite, President of CENTURY 21 Judge Fite Company in Dallas, where he talks about "Buying and Selling in Today's Economy". Click here to watch!

How do I get ready for a loan?

Real Estate 411 - TIPS on applying for a mortgage

- First and foremost get your credit in order! Most lenders require at least a 580 credit score. Go online and check your credit score at www.freecreditreport.com.

- Be prepared to make a down payment: Minimum of 3% for FHA loans and minimum of 5% for conventional loans...and remember, if you don't have the funds for a down payment there are options. Ask your real estate agent or mortgage loan officer to give you more information on down payment assistance.

2-Minute 411 with Jim Fite

Jim Fite shares his thoughts on MISSION POSSIBLE: Loans are happening!

"Think outside the box". When it comes to getting financing, you must think outside the box. Owner-financed is an often overlooked yet viable option for financing. There can be situations when it is financially advantageous to the seller to finance the home (age, retirement, tax consequences). When the owner is financing, they can finance the full amount or just the down payment.

"Just remember, there are many ways to finance a home: FHA, VA, Bridge Loan, Bank Financed Loan, Cash, Conventional loans, and owner-financed. See your real estate agent or your mortgage loan officer to find out what best suits your situation."