Ruth's Blog: March 2010

I can't help but pout. I have been noticing all the pictures everyone is posting with blossoms budding out on the trees, and tulips and daffodils bursting colors of the rainbow. And here I sit looking out my window wondering if we will ever see the signs of spring? Even the fish are getting tired of hibernating and ready for some warmer weather!

Yes, I'm definately having a serious case of cabin fever right now. I know that in about two months, I'll be tired of fighting the weeds, mowing the lawn, and keeping the pond clear of algae. ***sighs*** But right now, I'm getting pretty sick of the snow! Looks like the kids will be hunting eggs in doors again this year.

I am certain that when all this snow melts, we'll see green! FINALLY!

Be preapproved to buy a home in Castle Rock, Colorado

Castle Rock is a rather small, sleepy little community located just off I-25 between Denver and Colorado Springs. The butte located on the east side of the interstate is what gave inspiration to the name, Castle Rock.

It's just as important to be preapproved to buy a home in this little town as it is when making an offer for a home in the city. In a previous post I explained the difference between being prequalifed and being preapproved to buy a home. The focus of this post is WHY you'll want to be preapproved to buy a home!

When you have been preapproved for a home loan it allows you to shop with confidence. But more importantly the seller of a property will look at your offer more seriously than an offer from a buyer who has only been prequalified. Many times a seller will take a lower offer from a buyer who has taken the time to be preapproved to buy a home as there is less risk of taking their home off the market only to find out weeks, sometimes months later that the prequalified buyer can't actually get approved for their loan!

Another advantage of completing the steps to be preapproved to buy a home is that many lenders can offer an interest rate lock even if you haven't found your actual home yet! This is especially comforting in a market where there is concern about interest rates going up. A higher interest rate means a smaller. less expensive home when you're targeting a maximum monthly house payment. This type of lock usually allows you 30 days to find your home and an additional 30 days to close on the property.

For more information on how to be preapproved to buy a home call me today!

Mortgage Rate Indicators for Denver

Today's market was a little rough with cost of financing jumping up a bit. Temporary blip or a sign of what's coming just around the corner? No crystal ball is giving a certain answer to that question. Just stay in close communication with a lender who is keeping a close eye on the mortgage rate indicators!

Market Comment - Week of March 22nd, 2010 Mortgage bond prices rose last week helping mortgage interest rates improve slightly. We started the week on a positive note with rates falling amid tame inflation readings. The producer price index fell 0.6% and the core rose 0.1%. The headline figure was the lowest since July 2009. Weekly jobless claims showed the employment situation remained poor. Unfortunately we saw the market fall a bit pushing rates higher Thursday afternoon following the announcement of the size of the upcoming Treasury auctions and amid fear of future rate hikes. Rates fell about 1/8 of a discount point for the week. The durable goods and gross domestic product data will be the most important releases this week. Supply concerns will continue to weigh heavily upon the bond market with the continued record Treasury auctions. If foreign demand falters mortgage interest rates could be pressured higher. Economic Factors Economic Indicator Release Date Time Consensus Estimate Analysis Existing Home Sales Tuesday, March 23, 2010 Down 0.9% Low importance. An indication of mortgage credit demand. A significant decrease may lead to lower rates. 2-year Treasury Note Auction Tuesday, March 23, 2010 None Important. $44 billion of notes will be auctioned. Strong demand may lead to lower mortgage rates. Durable Goods Orders Wednesday, March 24, 2010 Up 0.5% Important. An indication of the demand for "big ticket" items. Weakness may lead to lower rates. New Home Sales Wednesday, March 24, 2010 Up 1.5% Important. An indication of economic strength and credit demand. Weakness may lead to lower rates. 5-year Treasury Note Auction Wednesday, March 24, 2010 None Important. $42 billion of notes will be auctioned. Strong demand may lead to lower mortgage rates. 7-year Treasury Note Auction Thursday, March 25, 2010 None Important. $32 billion of notes will be auctioned. Strong demand may lead to lower mortgage rates. Q4 GDP third estimate Friday, March 26, 2010 Up 5.8% Important. The aggregate measure of US economic production. Weakness may lead to lower rates. U of Michigan Consumer Sentiment Friday, March 26, 2010 71 Important. An indication of consumers' willingness to spend. Weakness may lead to lower mortgage rates. Gross Domestic Product The Gross Domestic Product (GDP) is one the most important reports during any given quarter. GDP is a measure of US economic output and spending. The report is significant in that it provides investors, analysts, traders, and economists with a comprehensive report of the direction of the economy. In addition, it also influences the decisions of Federal Reserve policy makers, Congressional budget employees, and corporate financial planners. GDP is the sum total of goods and services produced by the United States. The initial report is often based on incomplete data. Therefore, additional revisions are released over the following two months. There are often substantial differences between the initial release and the revisions. The mortgage-backed security market generally responds favorably to weaker GDP growth. While revisions generally don't move the market like the original release, they still have the potential to cause market volatility if vastly different from the prior releases. Be cautious heading into the data this week.

WR Starkey Mortgage, LLP - A different kind of company...where people come first!

6025 South Quebec, Suite 110 Englewood, CO 80111      rvogt@wrstarkey.com www.MyLenderOfChoice.com    Ruth Vogt Business Development Manager (LMB100023827) Work: 720-489-0712 Fax: 720-489-0273 Other: http://www.dora.state.co.us/real-estate/index.htm

©2010 Design by WR Starkey Mortgage, LLP NMLSR #2146. This is not a guarantee of financing. All borrowers must meet certain underwriting guidelines and credit criteria. Rules and Regulations may apply.

Be preapproved for a home in Castle Rock, Colorado.

Whether you are renting or just thinking about a new home, the first step is to be preapproved for a home before you ever start looking for the home! First, you need to know what a preapproval means, and then I'll give examples on why you need to be preapproval for a home in my next post.

Many lenders and real estate agents will ask you to at least be prequalified before you start your search for a new home. While that's a good start, it's not enough! A prequalification merely indicates that your credit has been pulled, and your income is sufficient to qualify for a maximum monthly payment based on your verbal disclosure. To be preapproved for a home, however, a formal income analysis can get a little tricky. Not all income is always considered acceptable income for the purpose of obtaining a final loan approval. In order to actually be preapproved for a home, your income will be scrutinized to assure a minimum of a two year history in the same line of work has been established. Also, the income must continue usually for three years. When commissions, bonuses, overtime, etc, is being used, there must be an acceptable history of such. To be preapproved for a home means your source and breakdown of income has been examined by an underwriter.

The next step to be preapproved for a homeis to have your liquid assets reviewed. Even if you are obtaining a no down payment loan such as a CHFA loan, lenders may want to see that you have "reserves" or excess funds remaining after closing to cover unforeseen housing expenses should they arise. Copies of bank statements are usually provided to show you have sufficient liquid assets. Sometimes a review of the bank statement may trigger additional questions by the underwriter. If so, it's wise to provide explanations right then in order to to be preapproved for a home before you go shopping for one.

And even though I mentioned the credit report review, there are so many things on a credit report that one set of eyes might miss when the goal is to be preapproved for a home and not just prequalified. Depending on personal circumstances there may be additional documentation that may be requested to be preapproved for a home that might not be asked when simply being prequalified. Once you get the paper work out of the way, you'll be able to enjoy the hunt for your perfect home!

HOORAY! For those of you that either know me or have been reading my posts, you know that I recently broke my hip while on an out of town business trip to New Orleans. Three weeks ago last Sunday, to be exact. I was told to expect to be using a walker for 6 weeks (yes, I teared up over that one!) BUT today I graduated to crutches. ***cheers*** And I'm pretty sure I'll be using just a cane maybe by the end of the week. We'll see???

And what do I attribute my faster than expected recovery to? YOU! Thank you all for your prayers and words of encouragement.

Heartfelt gratitude,

Ruth

Stay posted for further stories of success, my friends!

Mortgage Rate Indicators for Denver

Experts will be keeping a close eye on the rates between now and after the end of the month (when the Fed is expected to stop buying mortgage backed securities). If interest rates only go up .25% to .75%, then the belief is that our market is healthy. If rates go up higher, it will be interesting to see what, if anything, the Fed does.

All Mortgage Rate Indicators are saying the same thing: Play it safe, and get your interest rate locked in while they are still low!

Market Comment - Week of March 15th, 2010 Mortgage bond prices fell last week applying slight upward pressure on home loan rates. The market remained very volatile within a narrow range. With the lack of data the first portion of the week, oil prices factored into trading. Oil remained above $80 a barrel, which reignited inflation concerns. The retail sales report released Friday was much stronger than expected, indicating the US economy may be getting stronger. Rates rose about 1/8 of a discount point for the week. The Fed meeting Tuesday afternoon will be the most important event this week. The inflation data from both the consumer and producer sides will also take center stage. Signs of inflation are generally not received well by the mortgage bond market. If inflation remains in check, mortgage bonds could benefit. Economic Factors Economic Indicator Release Date Time Consensus Estimate Analysis Industrial Production Monday, March 15, 2010 Up 0.1% Important. A measure of manufacturing sector strength. Weakness may lead to lower rates. Capacity Utilization Monday, March 15, 2010 72.3% Important. A figure above 85% is viewed as inflationary. A decrease may lead to lower mortgage interest rates. Housing Starts Tuesday, March 16, 2010 Down 0.6% Important. A measure of housing sector strength. A larger than expected decrease may lead to lower rates. Fed Meeting Adjourns Tuesday, March 16, 2010 No change Important. Few expect the Fed to raise rates, but some volatility may surround the adjournment of this meeting. Producer Price Index Wednesday, March 17, 2010 Unchanged, Core up 0.1% Important. An indication of inflationary pressures at the producer level. Decreases may lead to lower rates. Consumer Price Index Thursday, March 18, 2010 Unchanged, Core up 0.1% Important. A measure of inflation at the consumer level. Lower than expected increases may lead to lower rates. Leading Economic Indicators Thursday, March 18, 2010 Up 0.2% Important. An indication of future economic activity. A smaller increase may lead to lower rates. Philadelphia Fed Survey Thursday, March 18, 2010 17.5 Moderately important. A survey of business conditions in the Northeast. Weakness may lead to lower rates. Producer Price Index The producer price index is a measure of prices at the producer level and is important because it is the first inflation report to be released each month. Investors are typically able to gain an initial indication of inflationary pressures from the release. If producer prices are increasing, there is a tendency for producers to pass the increases on to consumers in the form of higher priced goods. It is important to note that the PPI is only a measure of goods, while the consumer price index is a measure of goods and services. It is possible for the price of goods to remain stable, while the price of services increases. In this scenario PPI would do little to warn of a change in inflationary pressures, while the CPI report would provide an indication of the inflationary effects of the service component. This distinction between the two reports shows why most analysts view the CPI as a more accurate indicator of inflation. Nevertheless, market participants still gain valuable insight into potential volatility in the financial markets from the PPI release. Be cautious heading into the inflation data and Fed meeting this week.

WR Starkey Mortgage, LLP - A different kind of company...where people come first!

6025 South Quebec, Suite 110 Englewood, CO 80111      rvogt@wrstarkey.com www.MyLenderOfChoice.com    Ruth Vogt Business Development Manager (LMB100023827) Work: 720-489-0712 Fax: 720-489-0273 Other: http://www.dora.state.co.us/real-estate/index.htm

©2010 Design by WR Starkey Mortgage, LLP NMLSR #2146. This is not a guarantee of financing. All borrowers must meet certain underwriting guidelines and credit criteria. Rules and Regulations may apply.

I know there must be something to this, or everyone wouldn't be in such a twitter about it. But I have to admit, I don't get it! I don't get how to build relationships (how many tweets does it take to get to know someone with 140 character limit per tweet??) I don't get how to put a business plan together focused on getting business referrals from it?

I feel like Twitter is similar to standing in the middle of an 8 lane highway with vehicles going 75 MPH and hoping to catch a ride with someone!

So at Denver Rain Camp, I really tried to focus on the info about Twitter, because I KNOW there has to be something very obvious that I'm missing. And like many others, I am on Twitter, I do Tweet occasionally (matter of fact I added my Twitter info in my settings in AR to send all my public blogs to Twitter automatically!). I have followers, I do follow others. But don't that fool you... I still don't "get it".

And if you think you do, use one of the tools given to us at RainCamp! Go to www.Klout.com and find out what your score is! This program ranks your effectiveness on a scale of 1 to 100. My score was a 10 and I'm still pouting about that. But, hey, I admitted I don't get it! Even the people that I thought must have a good handle on Twitter weren't ranking more than a 40!

So, I challenge you: if YOU think you get Twitter, check your score. If you know someone that you think must be good at it, check THEIR score! Klout.com has reassured me that most people out there really don't get Twitter, either! NOTE: part of my scoring ranking me over 1000% on content of tweets, which is a direct reflection on automatically tweeting my AR blogs!

One of the websites that I wrote down from Denver RainCamp to give 900 pieces to help understand Twitter I thought was TheTwitterTools.com. But I wrote it down wrong, as I can't find the site?? If you know what the correct website address is, please let me know!

#, or hash tags, on the other hand is one of the cool things that Twitter has come up with, and is easy to understand. For instance, when you're in in Twitter, go to the search field and put #Raincamp and you can see tweets made on Twitter that included #raincamp in their tweet. Helps to keep you updated on a specific topic.

BUT I don't know where the "library" of hash tags is kept to find other topics I might be interested in?? And how do you get one started? For instance, I know they have "tweet parties" where people gather in cyber cafes and just tweet. I think it might be fun to start a tweeting party during happy hour. We could call it #ToastedTweets!

In the meantime, I'm going to still focus most of my attention on what is working for me: ACTIVE RAIN!

Oh, my! I really over did it yesterday! 8 hours of Raincamp and I'm still exhausted today! Not because of pushing that darn walker around all day, but because my head is still swimming with all the stuff we learned!

Where to start? Just one thing at a time. But for reference, here are my notes that I took:

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Twitter: #raincamp

Use Klout.com to see how much impact you have on twitter.  (5 today. boo-hoo)

Photosynth.com helps you find related photos from all sites. Stitches photos together for tour??

Wiggio.com allows you work in groups

IGetSales.net

GoProSystems.com

Xobni.com check email addresses to pull profile of leads (68% increase if you send a facebook, twitter, or linkedin message vs email)

Tr.im and tinyurl.com do the same except that tr.im gives results of how many clicks and from what  source.

Mailchimp.com does the same for emails.

Goldmail.com allows video emails inside of regular emails.

Awayfind.com is like an auto responder??

99designs.com  competing for design work

Google.com/voice ???

Slydial.com enter in their number, your number, by passes live ring and goes direct to voice mail as a missed call.

74% people online; 16 TV vs 32 on computer. 32% of time online on social platform. 1% of time people on websites.

Help local businesses identify target marketing!

93% of consumers online use search engines. 85% of traffic comes from search engines. 825 of searches come from yahoo, google, msn and 67% from google.

75% won't  go past the first page. You want to get in top 5%.

87% of homebuyers, 94% of 23-44 yrs use internet.

32% found the actual they purchased online. (based on photos: quality and quantity_

90% of sellers have their property marketed on line. (All online marketing is not equal)

Google search sponsored ads, cost to click. 61% users think organic is more relevant.

SEO: Search Engine Optimizer.  Four key areas:

The Long Tail Truth : 20/80 20% Denver Real Estate vs 20% Homes for sale in Cherry Creek.

Hittail.com tracks hits based on keyword searches

Homes in lone tree, parker homes for sale, qualifying for a mortgage,  todays interest rates, when to lock a loan.

Content /keywords: geographically specific (not name) with keyword density.  Pick one page for all most common keywords. (Denver real estate, all Denver, not Denver and Aurora)

Limit the size of page or blog (500 words)

The older the domain name, the easier to rank. MOST domain names doesn't win except for marketing. On the other hand, most pages does win!

????  Size of website: google site:www.domainname.com

Page titles should match the keyword search as well as the density of the page.

Page descriptions should include the page titles.

Links: pay attention to link text.  Click here vs click here to view ABC homes for sale

Limit your size; focus on density; older domain better; more pages better; page title and descriptions match; link (one way NOT two way)

Google analytics tracks traffic. Use on all sites/pages

Google expert: Matt Cutts (you tube) for google tips

Projection: mixed media and multi media (video!) will most likely be impacting. Networking or social graphing will start applying.

5 reasons to have a blog:

•1.       Write articles that people find via internet

•2.       Missed it

•3.       Missed this one too

•4.       Doggone it, this one tooo!

•5.       Blog for referrals

Don't use filler words (and, the) to determine content

Brad Andersohn

Screentoaster.com and screener.com

Slideshare.com/bandersohn

Picnik.com online photo editing

Openoffice.org  free Microsoft programs

Gimp.org adobe photoshop jr. free (mix photos and videos!)

Xtranormal.com text to movie

Clipnabber.com save video to hard drive for offline presentations

Bannerfans.com graphic designs online

Feedmingle.com rss multiple feed widget stored in one place

Steprep.com monitor what people are saying about you

Issuu.com publication library

Box.net online file storage and sharing

Transferbigfiles.com to send larger files!! (up to 1 gig)

Freeconferencecall.com

Text widget (realestatetechnologyonline.com/widget)

Widget.collecta.com works with twitter to sort info or send info based on specific words/ zip, etc

Waslkscore.com get walking distance within a neighborhoods

Thetwittertools.com 900 pieces to assist you with twitter

Conduit.com creating your own toolbar (Active Rain)

Wix.com free flash websites / useful for listing addresses

Feedblitz.com email subscription and newsletter tool

Wisestamp.com create custom social networking signatures on email (including social media)

Tokbox.com free video email

Retaggr.com email signature and profile of all social media and website

Avg.com free anti-virus and anti-spyware

Mozy.com $4.95 online back up!

Socialthebook.com!!!

Ambient Awareness, best way to describe twitter. Lots of little pieces to complete a picture.

Worlde.com check to see what words are most commonly used on sites.

Logotournament.com $250 for designers to compete to get your brand created.

Namechk.com to see if your user name, personal name, are available on other sites.

Facebook.com/username

Geochirp like google alert only local??

Tweetbeep track tweets about you

Facebook Fan Page

•1.       Geographic area (fans post page)

•2.       Ask questions (what's the best... pizza, dry cleaner)

•3.       Then add a FBML (listing service)

•4.       Restaurant Reviews

•5.       REO business

•6.       Office or team page

Join Saveaworm page! (I did!)

Script: Interview one of my competitors before you hire me and I'll take $500 off my competition. Because I want you to know with 100% confidence that no one is going to do more than me to get your home sell.

TWITTER

140 characters is all peple can remember

Demandspot.com predetermined phrases that suggest buyer or seller opportunities; then search!

Geochirp words to follow

Prospecting Facebook searh for words: house, realtor

Get your sphere in gear. 

•1.       Scan through notifications - new job, baby to be lead generation opportunities

•2.       Identify reason to call

•3.       Make contact and use the sphere script

•4.       Set up lists to update to list

•5.       1 email a week: Keep it short, give Item of value

AND DON"T FORGET TO Ask for referrals!

How to rank your business:

Google Maps in business page  in Google/Local

Click on the local business results

Add my business

10 days of pain - work out a 10 day action plan to apply to every internet lead opportunity.

Average client averages 10 days on the internet doing research before they make decisions, so shouldn't we do the same?

www.hitwise.com/us/datacenter/main/dashboard-10133.html (rankings of searches)

***********************

These notes may not make sense to anyone else, especially if you didn't attend. If anyone that did attend, picked up anything else that I missed, please add to my list!

Wish me luck! If I check off 2 a day, I MIGHT be ready for Raincamp next year!!!

Mortgage Rate Indicators for Denver.

The next 60 days are going to be interesting to see what rates do. Without getting too technical with the effect of supply and demand on interest rates, let it just suffice to say we are embarking on a time frame where government funding which has been supplementing the mortgage backed securities activity is potentially coming to an end. Times are going to be volitile so be sure to stay in close communication with your lender and discuss the current mortgage rate indicators!

Market Comment - Week of March 8th, 2010 Mortgage bond prices continued to rebound higher last week, which pushed mortgage interest rates lower. Stock gains kept mortgage bonds relatively in check but many of the data releases were very bond friendly. The core PCE inflation reading was unchanged compared to the slight increase expected by analysts. Q4 revised productivity rose 6.9%, much better than expected. Higher productivity means a company can produce more with less input helping to keep prices and thus inflation in check. Rates fell about 1/8 of a discount point for the week. Expect stocks to factor into trading the early portion of the week with very little data on tap. The Treasury auctions will be the focus throughout the middle portion of the week. Strong foreign demand would likely help mortgage bonds also. The jobless figures and retail sales data will be the focus for the end of the week. Economic Factors Economic Indicator Release Date Time Consensus Estimate Analysis 3-year Treasury Note Auction Tuesday, March 9, 2010 None Important. $40 billion of notes will be auctioned. Strong demand may lead to lower mortgage rates. 10-year Treasury Note Auction Wednesday, March 10, 2010 None Important. $21 billion of notes will be auctioned. Strong demand may lead to lower mortgage rates. Weekly Jobless Claims Thursday, March 11, 2010 450k Moderately important. An indication of the employment situation. A large increase may bring lower rates. Trade Data Thursday, March 11, 2010 $40.3 billion deficit Important. Affects the value of the dollar. A falling deficit may strengthen the dollar and lead to lower rates. 30-year Treasury Bond Auction Thursday, March 11, 2010 None Important. $13 billion of bonds will be auctioned. Strong demand may lead to lower mortgage rates. Retail Sales Friday, March, 12, 2010 Up 0.1% Important. A measure of consumer demand. Weakness may lead to lower mortgage rates. U of Michigan Consumer Sentiment Friday, March, 12, 2010 73.6 Important. An indication of consumers' willingness to spend. Weakness may lead to lower mortgage rates. Auctions US Treasury bonds do not directly dictate fixed mortgage interest rate pricing however they do have an indirect impact. Both Treasuries and mortgage bonds often track in the same direction but this is not always the case. There are many times that Treasuries and mortgage bonds move inversely. Despite the overwhelming size of the US economy, foreign investors can still have an effect on moving the financial markets. When foreign economies struggle foreign investors often purchase US based investments including mortgage bonds. This demand usually causes mortgage bond prices to rise and interest rates to fall. This flight to quality buying was one of the factors that helped mortgage interest rates to remain historically low in years past. There is a real threat that continued global economic turmoil might keep foreign investors from purchasing mortgage bonds in the future. The Treasury auctions this week will be important in determining the current appetite of foreign investors for dollar denominated securities. If this week's auctions are poorly bid mortgage bond prices could fall pressuring mortgage interest rates higher.

WR Starkey Mortgage - A different kind of company...where people come first!

6025 South Quebec, Suite 110 Englewood, CO 80111      rvogt@wrstarkey.com www.MyLenderOfChoice.com    Ruth Vogt Business Development Manager (LMB100023827) Work: 720-489-0712 Fax: 720-489-0273 Other: http://www.dora.state.co.us/real-estate/index.htm