The Best Real Estate News in 2008 is...

Interest Rates are at the lowest level we have all seen a long time. Purchases and Refinancing is about to become popular again.



Despite all of the recent well reported real estate related woes, I have great news for everybody. RATES ARE DOWN! And truth be told, rates are actually way down. Rates are currently better than anything we have seen in the last 3 years, and by the time you read this, they could be at an all time low for the last 10+ years!

The reason they are so good today is really difficult to pinpoint. There are really dozens of reasons, but my market advisors are saying that these low rates are influenced from the speculation that the Fed will continue to lower prime (which is a good guess).
Here are my rates on Jan 15th. These rates assume that you qualify. Qualifying has never been easier; the streamline process has reduced the documentation and time to refinance.

30 year fixed 5.375%
15 year fixed 4.875%
5 year ARM 5.175%
5 year ARM 4.75%

Please give me a call (or email) to explore if this is a good time to refinance or purcahse. Aside from the many that will refinance during this rate spike, this is a fantastic time to purchase investment property.


Troy Schuricht
7575 E Redfield Rd Suite 235Scottsdale, AZ 85260
480-305-8905 - office
troy@cffinfo.com
http://www.communityfirstfinancial.com/
http://www.yourlendertroy.blogspot.com/
click to: Google Troy Schuricht!

Construction Loans? When And Why To Use Them

Why use a Construction Loan?
Building your dream home, though exciting, may present many challenges. Although you may be familiar with the traditional mortgage process, a construction loan includes additional elements of risk. In a typical construction project, the contractor will request funds when work is completed. Many times a homeowner will build their dream home without the use of financial institution funds. There are various ways to pay your contractor, many people feel they should pay cash, use a home equity line of credit from another property or cash out an investment.
This presents unique challenges for the homeowner. The homeowner must manage the additional responsibility of ensuring all subcontractors and suppliers are paid in a timely fashion. The homeowner must also understand the statutory documentation requirements in their state. If the draw process is not properly managed and the contractor does not pay the subcontractors and suppliers, the homeowner may be subject to mechanics liens. To mitigate your risk throughout the fund control process, consider the benefits of a construction loan and the process. The construction process is a complicated one and the construction draw process will ensure all subcontractors and suppliers are paid so that you don't have to pay the bill twice.
A construction loan is a check and balance of the funds that are dispersed throughout the build of a new home. With the help of the lender(s), inspectors and draw processing staff your funds are reasonable protected.

Understanding the Costs Involved
As you begin the process of building a new home, you'll want to understand the costs associated with your construction and permanent loans. You'll also need to know when the expenses occur so that you can prepare an accurate budget.
• You can begin construction with as little as a 10% down payment or 10% equity in the total cost to acquire your lot and build your new home. If you don't own your lot, the first draw of your construction loan may be used to pay off your lot. There are instances that a borrower will not be required to have any money down.
• The interest rate on your construction loan is typically tied to the Prime Rate. You will be billed monthly for interest only, and your payments will be based on the current balance of it at the current interest rate for the previous 30 days. Borrowers can build in an interest reserve account to pay the interest payment during construction.
• When you finish building your new home, we will modify your construction loan to a permanent loan of your choice. Various options for locking in your rate are available depending on the product selected.

Total Project Costs
This is the cost to complete the home and consists of soft costs, hard costs, land value, closing costs, contingency and interest reserves.
Soft costs: Permit fees, engineering fees, architectural fees and other costs associated with building the home but not directly a part of the actual construction costs. Many times the borrower has already paid some of these costs. To consider these paid items as "equity," the borrower must document the cost with a bill and a canceled check or a paid receipt.
Hard costs: The actual cost of construction covering all materials and labor associated with the building of the home. Typically the borrower will enter into a contract with a contractor to build the property. Like a purchase contract for an existing home, this contract will set forth the work to be done and the costs associated with that work. All contracts must be for a fixed price; "Cost Plus" contracts are not acceptable. To support this cost, we require a signed and dated copy of the contract along with a detailed Line Item Cost Breakdown prepared by the contractor. All contracts and budgets must be reviewed by, and contain terms acceptable, to standard lending guidelines.
Closing Costs: Costs associated with the closing of the loan (e.g., title costs, loan fees, discount fees, inspection fees, appraisals, etc.)
Contingency: In certain circumstances a reserve account will be needed to cover unforeseen cost overruns in the construction of the home. A required 5% of the hard costs will be established in the Contingency Account (Contractors may hold a reserve other than what usually required by the Lender.)
Interest Reserve: At loan closing, an account is established to pay the estimated interest costs during the construction of the home. Since the borrower is only charged interest on the amount of funds disbursed, an estimate of the average disbursed amount is made. Our construction specialists will estimate that, on average, 60% of the loan amount will be disbursed during the term of the construction period. This interest reserve account is paid up front and is held to pay the interest during the time of construction.

Troy Schuricht

7575 E Redfield Rd Suite 235Scottsdale, AZ 85260

480-305-8905 - office

troy@cffinfo.com

http://www.communityfirstfinancial.com/

http://www.yourlendertroy.blogspot.com/

click to: Google Troy Schuricht!

Log Home Construction Loans

The all inclusive, one-time close, Log Home Construction Loan program will insure that building your log home is a simple and rewarding experience. The log construction loan program will work hand in hand with the Log Home Company of your choice. These programs are specifically designed to provide the funding necessary for your Log Home order to be placed and also for the delivery of your Log Home to your construction site. The one-time close feature of the log construction loan, combines three loans into one, encompassing your land purchase, (if necessary), your log home and construction costs, and your choice of permanent financing, with just one closing.

- Flexible, Up-Front Funding Options. Providing deposits, up-front, to your Log Home Company in order to insure your log order placement is secure. Funding options for the logs upon delivery are also available. - Your permanent mortgage note can be in place before you ever break ground. - 100% financing. No downpayment and low to no out of pocket closing cost programs.- Owner/Builder programs and Stated Income Documentation programs.

Troy Schuricht

7575 E Redfield Rd Suite 235
Scottsdale, AZ 85260
480-305-8905 - office
480-393-8801 - fax
http://www.communityfirstfinancial.com/
http://www.yourlendertroy.blogspot.com/

click to: Google Troy Schuricht!

Why use a construction Loan?

Building your dream home, though exciting, presents many challenges. Although you may be familiar with the traditional mortgage process, a construction loan includes additional elements of risk. In a typical construction project, the contractor will request funds when work is completed.
Many times a homeowner will build their dream home without the use of financial institution funds. There are various ways to pay your contractor, many people feel they should pay cash, use a home equity line of credit from another property or cash out an investment.
This presents unique challenges for the homeowner. The homeowner must manage the additional responsibility of ensuring all subcontractors and suppliers are paid in a timely fashion. The homeowner must also understand the statutory documentation requirements in their state. If the draw process is not properly managed and the contractor does not pay the subcontractors and suppliers, the homeowner may be subject to mechanics liens. To mitigate your risk throughout the fund control process, consider the benefits of a construction loan and the process. The construction process is a complicated one and the construction draw process will ensure all subcontractors and suppliers are paid so that you don't have to pay the bill twice.
Construction loan is a check and balance of the funds that are dispersed throughout the build of a new home. With the help of a lenders, inspectors and draw processing staff your construction loan funds are reasonable protected.

Troy Schuricht
7575 E Redfield Rd Suite 235
Scottsdale, AZ 85260
480-305-8905 - office
480-393-8801 - fax
http://www.communityfirstfinancial.com/
http://www.yourlendertroy.blogspot.com/

click to: Google Troy Schuricht!

How to select a Builder

Choosing the right builder is just as important as choosing the right lender. Your builder needs to be an experienced professional with a proven history of delivering a high-quality product on time and on budget.



Where do you find a builder?

Begin your search with family and friends who know people who have recently built homes. Professional organizations like your local Home Builder Association are also good sources of builders in your area. Ask a local real estate agent familiar with new home construction in your area. Drive around and note the builder's name on a project that appeals to you. Once you narrow down your selection, ask for references and estimates. Just remember that the lowest estimate is not always the best deal. If licensing is required in your state, be sure to select a licensed general contractor.


How do you know who is a custom home builder?

There are two types of home builders-custom builders and production builders. Unless you decide to purchase a home in a new housing tract where the homes are built from a single, large volume production builder, you'll want to work with a custom builder.

Custom builders:
Typically build on land you own
Specialize in one-of-a-kind homes from plans designed by an architect or designer
Build single-family homes, both primary residences and second homes
Typically build fewer than 25 homes a year
Tend to build luxury, high end homes

Happy building,
Troy Schuricht
troy@cffinfo.com
480-305-8905
http://www.communityfirstfinancial.com/

Major Home Renovation Loan (Rehab Loan)

Rehab and Renovation
Maybe you like the location, but not the home. Maybe you like the house, but not the kitchen. Maybe you like the home you live in, but want a bigger one. Use of a construction loan can help you build, rebuild, remodel or rehab any home you choose. Most work can be completed cheaper than you would think.
Heres how it works:
The loan is based on the value of your home AFTER the renovations are finished. This gives you the flexibility to make your home into more than you could with just your current home equity. During construction, the loan is a line of credit with interest-only payments due on the outstanding balance. When the renovations are complete, the loan converts to a conventional mortgage. If you need to move out while your home is being renovated, we have a "no-payment option" during the construction period to help you afford the increased housing expense.
Other great features of a Major Renovation Loan include:
A contingency reserve to cover plan changes or unforeseen circumstances. A single loan structure with only one settlement- a feature that could save you hundreds of dollars in settlement costs.










Happy Buildling,
Troy Schuricht
COMMUNITY FIRST FINANCIAL, LLC
7575 E Redfield Rd Suite 235
Scottsdale, AZ 85260
480-305-8900 - office
480-393-8801 - fax
http://www.communityfirstfinancial.com/
http://www.yourlendertroy.blogspot.com/
http://activerain.com/tschuricht

How to Help Your Customer Feel More Comfortable With Construction Loans

What are the reasons people buy resale homes over building thier own custom home?
Tangible product. They can see, smell, touch the new home they wish to buy.
Time line. Most resale homes are available with in 45-60 days.
Inventory. Easier to find an existing home rather than a vacant lot.
Variables. Building requires: Realtor, land, builder, plans, options, time, patients, vision, trust, etc....
Education. Many home customers that build homes invest more time into their "purchase" and at the same time have to educate themselves with land, building and builder.
This list can go on all day long, but the theme of the idea is HOW DO WE HELP OUR CUSTOMER FEEL MORE COMFORTABLE WITH THE CONSTRUCTION PROCESS AND THE CONSTRUCTION LOAN?
This idea is geared towards custom homes. Production builders actually do a fine job at this and custom builders and their customers can learn a lot from their presentation of information. Only if there was time, money and resources to emulate their marketing. So what can you do?
What can be done is education. If you are a builder, developer, or Realtor here are a few ideas:
Make sure that prior homes built can be used as sells tools for your future customers. I own a lot today because I walked in to a spec home that the builder was working on and fell in love with the home. The General Contractor happen to own the lot next door, now I do.
Use the web. Show case every home you have ever built. People love pictures. Remember you have no models to show case like production builders.
Choose the advisers you and your customers use carefully. Make sure your Realtor is a pro with the custom home building process, same with your loan officer, architect, and any other support. The very best advisor's have experience and know how.
Make sure your advisors are web based. Meaning, If I tell a customer AHK Contracting is great. My customer can actually go their website and get some level of comfort with their experience. I will use myself as an example too. I am a construction loan specialist. I can help you be more comfortable with this by my websites: http://www.communityfirstfinancial.com/, http://www.cffinfo.com/, http://www.yourlendertroy.blogspot.com/, http://activerain.com/troyschuricht. These websites share testimonials, credibility and education specifically on construction loans. Everything matters in the technology based society we live in. And people love to research things they do not know, especially things like construction loans.
Referrals, testimonials and past clients. Gather as many other peoples opinions, ideas, and experiences. We all love stories and we should try and share them.
Many custom home customers repeat the process, because they feel comfortable with the process, see the value , and love the feeling of building a vision.
My formula for success: EDUCATION+ADVISOR'S=COMFORT
Happy building,
Troy Schuricht