Current Interest Rates: August 25, 2009

CONVENTIONAL

30 yr fixed – 5.00% APR5.135% 360 P&I Payments @ $1073.64

15 yr fixed – 4.50% APR4.727% 180 P&I Payments @ $1529.99

- based on $200,000 loan and excellent credit

GOVERNMENT

30 yr FHA/VA fixed – 5.125% APR 5.967% 360 P&I Payments @ $1088.97

- based on $200,000 sales price

THDA

Great Rate – 5.20% APR – 5.762% 360 P&I Payments @ $540.63

Great Advantage – 5.50% APR– 6.075% 360 P&I Payments @ $556.13

Great Start –5.80% APR – 6.390% 360P&I Payments @ $574.71

-based on $100,000 sales price

Rates courtesy of Sarah Suits, for more information & details call or email:

Sarah_Suits@UCBI.com 423-339-5463

How to buy a house in 25 easy steps - Part III

OK, so you've found the house of your dreams, you're pre-approved for a mortgage, you have a good Realtor (like me!) on your side. What's next? 11. Writing the offer. This step really deserves its own post (which it will get one day).

12. Write a check for earnest money. Earnest money is really just a deposit which lets the seller know you are "earnest" about going through with the deal if you eventually come to an agreement. Earnest money can vary from $0 up to 10% of the purchase price or more. For Chattanooga real estate, $500-1000 is typical although cash buyers are often asked for 10% as a sign that they actually have the cash. The amount of the earnest money and who holds it is a part of the offer and is a negotiable point. If you back out of the contract without exercising one of your contingencies, the earnest money goes to the seller. If you get to closing, the earnest money is credited toward the cash you need to bring to close.

12. Negotiating. You think they should leave the pool table, they think you should pay $20,000 more. That's where negotiating comes in. Decide what you are willing to give in on and what you aren't. Counter offers can go back and forth almost indefinitely. Once one of the parties agrees to the last offer/counter offer, the receiving party is notified. The date of that notification is the "binding agreement date" or BAD (how's that for a great acronym?).

13. Congratulations! You have a binding agreement! Now comes the fun part. Your contract will call for certain things to be done within a certain number of days of the BAD. First things, your earnest money will be deposited into the broker's escrow account if it hasn't already but that will go on without your involvement.

14. Next, you will need to make formal application with your lender if you haven't already. You may only have a preliminary approval which requires you to submit additional paperwork or information. If that's the case, get that stuff turned in ASAP. If you miss any of the deadlines in your contract, the seller could choose to terminate it based on a timeline default.

15. Arrange for a home inspection. This isn't a requirement but I always strongly recommend it. Almost all houses will have something wrong with them, even newly built ones, so don't freak out just because your inspector finds a long list of things s/he thinks should be corrected. Take a look at the list and decide which items are total deal breakers, which ones you'd like the seller to repair & which ones you are willing to live with - it's almost entirely up to you. Your contract might specify a pre-agreed repair allowance. The seller has agreed up-front to do a certain dollar amount in repairs. If this is the case, there is no reason NOT to ask for repairs that will cost up to that amount. If you don't have anything in the contract for this, which is usually the case in foreclosures and other distressed sales, you will need to decide whether you want to re-negotiate or walk away from the deal.

How to buy a house in 25 easy steps - Part II

Click here for part I of this series

Done with steps 1-5? Are you ready to actually start looking for your new home? Nope, not yet, false alarm.

6. Start thinking about what type of loan programs you might qualify for. Are you a veteran? First time home buyer? Are you flat busted broke or have you been saving since elementary school? All of these things can influence your next step...

7. Find a lender. Your Realtor can give you some possible connections. Is it necessary to use someone your Realtor refers? Absolutely not, but even if your Realtor pushes you in a certain direction don't assume that there is some nefarious goings on with two people conspiring to drain you of your cash. The reality is that your Realtor and lender are going to have to work closely together and if they already have a good working relationship your purchase may very well go more smoothly and quickly. In addition, your Realtor might be able to steer you toward a lender who has the type of loan program that is best for you (or someone who has the best variety of programs out there).

8. Work with your lender to determine what your budget will be. Now is where we start thinking about the actual dollar amount of your purchase. Be sure to keep in mind how much you are comfortable spending each month, not the maximum for which you qualify. Your loan originator will give you a pre-approval letter that will likely be required when you eventually submit any offers.

9. You have a lender and pre-approval, you have a budget, you have a Realtor, are you ready to look? At long last, yes. If you want to search on your own you can do so but if you come up with too many possibilities a good Realtor (like me!) can do more detailed searches to narrow down your choices and keep things from becoming overwhelming. Try not to be too specific, many buyers find that the home they eventually fall in love with doesn't have everything they originally said they wanted.

10. OK, you've found the house of your dreams - or at least the house at the beginning of your dreams. Now what? It's time to make an offer. The thing that strikes fear in the hearts of prospective home buyers the world over. It's that little piece of paper (or 40) that binds you to the biggest purchase you'll probably ever make. Makes you a little nauseous huh?

Next up, what happens after the offer...

How to buy a Chattanooga house in 25 easy steps - Part I

I work with first time home buyers quite often and most are intimidated (to say the least) by the home buying process. Here's a little secret: it's really not that hard. Do your homework beforehand, choose a Realtor (like me!) and a lender you can trust and then, barring something strange happening, you'll likely go from renter to homeowner with as little stress as possible.

This is part I of my series on how to do just that: Chattanooga Real Estate 101

1. Unless you have the purchase price of a house hidden in your mattress, you are going to need to get your credit in order. Click here for more information about how to do this. Start on this at least 3-4 months before you are going to be looking to buy. You often will find errors on your credit report that can take a while to be corrected. You don't want to be scrambling to fix these things while a mortgage broker is staring you in the eye.

2. Make a list of "must-haves," "like-to-haves," & "must-not-haves." Do you have a Great Dane, an Irish Wolfhound, a Husky and a Chocolate Lab? You're probably going to have to have a fenced yard. If, however, Fido is a Pomeranian, that fenced yard might be nice to have but not essential.

3. Think about what areas you might like to live in. Interested in a historic home? Check out some of my blog posts about Chattanooga's historic neighborhoods. Consider where you work, where your kids go to school (or where you'd like them to), what amenities you want close by, what kind of vibe you'd like your new neighborhood to have, etc. Your must-haves & must-not-haves will factor into this. If your main concern is wooded privacy and room to spread out you probably shouldn't be looking in Highland Park. If, on the other hand, you want to be in the middle of Chattanooga's nightlife, a Market Street condo might be the way to go.If you don't know anything about Chattanooga or its real estate market, a good Realtor (like me!) can help you narrow down your search.

4. Think about what your budget should be. In this case, think of it in terms of a monthly payment, not a purchase amount (we'll get to that part later). Don't try to decide the most you want to pay, decide what you are comfortable paying each month. Are you going to be cooking steaks in your new kitchen or throwing ramen noodles in the microwave? You also need to realize that the monthly payment on the loan isn't going to be your only expense. There will also be property taxes, home owner's insurance (sometimes called hazard insurance), mortgage insurance if you aren't putting down a 20% down payment, not to mention potential repairs. Budget tip: Looking outside the city limits can sometimes stretch your dollars because you won't be paying city property taxes.

5. See, this isn't that hard so far! Your next step is to find a Realtor - luckily, if you're in the metro Chattanooga/NW Georgia area you can go ahead and check this one off your list by going here. If you live in Kalamazoo, you've got some looking to do. What should you be looking for? Number one: someone who answers the phone. I know it sounds simple but you would be surprised how hard it can be to get someone to return a call. Number two: someone who knows the area. Number three: someone who isn't the name on the sign sitting in the yard of a house you think you might like. Chances are, unless it is a limited service listing like some of mine, that person is working for the seller. It usually doesn't cost you anything more to have your own agent looking out for your best interests so why not make sure you have your own representation?

Stay tuned for Part II of Chattanooga Real Estate 101...

Focus on Highland Park/Ridgedale: Chattanooga's Historic Neighborhoods

Bounded by Holtzclaw and Willow, McCallie and Main, Highland Park surrounds Tennessee Temple University. Several Temple Alumni and home restorers have been fixing up these houses over the late 1990's and early 2000's. The bulk of the homes on Chamberlain and Duncan have been renovated, nearly as many on Bailey and Union have been restored. These homes command a premium price, particularly those with original historic details. The Highland Park Neighborhood Association sponsors a tour of homes each year. The neighborhoods of Highland Park, Ridgedale, Oak Grove, Orchard Knob & Bushtown are often collectively referred to by Chattanoogans as Highland Park.

Bordered by Willow, Missionary Ridge, McCallie & Main, Ridgedale was originally conceived as an addition to Highland Park but it has now evolved into its own individual neighborhood complete with its own nighborhood association. The residential area between Dodds Avenue, Missionary Ridge, Main & 23rd Streets are also part of Ridgedale.

Tentative plans for a new park at the border between Highland Park & Ridgedale neighborhoods are currently being considered.

Although the Victorian was the most popular design for much of Highland Park's building period, the Four Square and Bungalow designs are the hallmarks of the Highland Park neighborhood. Many homes share a Craftsman or what I call a "transitional Craftsman" style, meaning that there are Craftsman elements without necessarily having all the elements of a true Craftsman home.

The heyday of this area was between its original development in the late 1800's, early 1900's and the 1950's. Urban blight and the demographic move to the suburbs claimed the Highland Park area as a victim. Crime increased and many of the once proud homes were subdivided into multi-family rentals. In the early 1990's, as many Chattanoogans started to become aware of Chattanooga's rich architectural history, several Highland Park residents - most notably Ginnie Tatum - decided to take back their neighborhood and formed a neighborhood watch from which the Highland Park Neighborhood Association was born.

Ginnie Tatum recently passed away and while she may be gone, the work she began is certainly continuing with the addition of more and more renovated historical gems and a thriving neighborhood.

Hamilton County Market Statistics

All of Hamilton County
All active, residential listings as of 7/20/09: 2,838
Pending or contingent listings (under contract) as of 7/20/09: 725
Residential listings closed (sold) during June 2009: 333
Number of months to sell current actives at June's sales pace: 8.5

Hamilton County, under $100,000
Active, residential listings: 620
Pendng or contingent listings: 139
Residential listings closed during June 2009: 85
Number of months to sell current actives at June's sales pace: 7.3

Hamilton County, $100,000-200,000
Active, residential listings: 1,050
Pendng or contingent listings: 195
Residential listings closed during June 2009: 140
Number of months to sell current actives at June's sales pace: 7.5

Hamilton County, $200,000-400,000
Active, residential listings: 769
Pending or contingent listings: 103
Residential listings closed during June 2009: 89
Number of months to sell current actives at June's sales pace: 8.6

Hamilton County, over $400,000
Active, residential listings: 399
Pending or contingent listings: 18
Residential listings closed during June 2009: 19
Number of months to sell current actives at June's sales pace: 21

ArtsMove Chattanooga

For artists considering a change of scenery, take a look at Chattanooga.

ArtsMove is a newly expanded program which provides assistance to artists moving to the Chattanooga urban area from at least 50 miles away.

Click here for more information.

Chattanooga was recently named #2 art destination among mid sized cities by AmericanStyle magazine and the city is committed to encouraging local art and artists