During these seemingly tumultuous times, very few people have defaulted on their home loans.  Ninety eight percent of homes in the nation are not going to foreclosure.  And most of the other 2 percent of homeowners purchased homes in Denver or elsewhere that they could not afford. 

We must remember that when we crunch the numbers over 45 years, homes have appreciated an average of 5.98 percent.  A house purchased seven years ago for $200,000 was worth $360,000 within five years.  So, if the average price fell by 10 percent each year for the next two years, the home was still worth $291,600.  For a $40,000 down payment, this home increased $91,600 in value—a pretty good return on investment.  And since tax law benefits homeownership, these profits are tax free.

Some say that home prices have risen at a higher rate than incomes have increased.  However, over the past 45 years, disposable income has increased 6.5 percent, paralleling the average increase in home prices at 6.47 percent.  Since 1963, home prices have remained at about 5.44 times the average individual income. 

If people took out loans based on 80 percent of the median income, their payments averaged 41.44 percent of their incomes during the past 45 years.  In 2007, however, people were paying only 33 percent of their individual incomes in house payments.  The national median price is about $208, 600 right now.  If the 41.44 percent figure is applied, today’s income could even support a median home price of $256,061. 

According to Brian T. Larrabee, Founder of Estate of Mind, Inc., “The notions that homes are unaffordable and prices have outpaced income are neither true, nor responsible journalism.” 

Larrabee cajoles people into buying homes.  “Think of it this way:  Food, Shelter, Clothing—these are the basic necessities of life.  Housing is right in the middle.  It is the foundation of survival—and prosperity….The inevitable down cycles should be seen as springboards of opportunity.”

Indeed, in contrast to the interest rates that approached 20 percent during the early 1980s, we are seeing interest rates near 5 percent and homes for sale offering the buyer great values in today’s market.

For more information about homes, farms, horse properties, and real estate in the Mile High City, call Michael Paul of Realty Oasis at (303) 268-6052.

May we suggest enlisting the help of a Mortgage Planner before anything else?  A professional planner is like a GPS system that navigates the trek ahead, preparing buyers for preapproval for their Denver home loans.  Preapproval saves time, money, and disappointment. 

Even before contacting the Planner, buyers should opt out of trigger lists that sell personal information and credit scores.  The Planner reviews the buyer’s credit, helping to repair any potholes before the loan application is submitted. 

People journeying to homeownership should keep credit account balances low.  That means avoiding buying anything on credit that cannot be paid off in full each month, including vehicles. 

Potential buyers also need to be building reserves of savings and investments, saving up down-payment monies and closing costs along with three to six months of expenses.  Low reserves do not look stable to loan officers.  According to Dave Muti in Strategic Homeowner Magazine, “While most lenders will permit this amount to be held in retirement accounts, my recommendation is for this to be held in non qualified liquid assets without incurring any penalties.”

It is best to stay on the road, of course.  Some people have the habit of moving money around between accounts.  This makes it harder to document the source of the funds and could raise red flags about the applicant.  If buyers must change banks, lenders will require documentation including copies of statements from old banks, check, and deposit slips to cross reference.

Additionally, a steady employment history is best.  Lenders like tenure, longevity, and stability.  Anyone wanting to change jobs should consult with his/her Mortgage Planner.  The rule of thumb is that any job moves should come with more income or greater responsibility.  Lateral moves should be in the same industry and must be carefully considered.

Homeowners should sell their homes before buying the next homes.  It is better to rent for a while than to stress out over unforeseen problems that could come up while trying to carry two mortgages.

Starting early consulting with reputable Mortgage Planners helps buyers to analyze their goals, dreams, and finances.  When the time is right, the Mortgage Planners assist buyers to connect with the right real estate agents.  From then on, the ride should be smooth all the way to the destination.

For more information about homes, farms, horse properties, and real estate in the Mile High City, call Michael Paul of Realty Oasis at (303) 268-6052.

Denver CO homes and businesses are located in a growing region in the South Platte River Valley on the High Plains just east of the Front Range and recreational adventures in the Southern Rocky Mountains. The Denver downtown district is approximately 15 miles east of the foothills of the Rocky Mountains.  In 2007, almost 600,000 people resided in the City and County of Denver, 2.5 million in the Denver-Aurora Metropolitan Statistical Area, 3 million in the 12-county Denver-Aurora-Boulder Combined Statistical Area, and almost 5 million in the 18-county Front Range Urban Corridor.

The city has the 10th largest central business district in the United States including a diversified economy.  As the state capital and one of the largest cities in the western U.S.A., the Mile High City boasts a large government presence with nearby military installations.  And the housing market has remained relatively stable, even during the changing real estate markets.

The commercial real estate market was the last sector to feel the pain of the nation’s real estate slow down and is expected to rebound in the next couple of years.  On a national scale, however, several problems need to be solved including the debt load, the inability to obtain loans or credit, declining property incomes, and fear.  It is forecast that the commercial market will fall 15 to 20 percent from its peak during 2007.  For the rebound to happen nationally and even locally, these issues need solutions.

As the financial industry comes to grips with these and other issues, our promising city is cautiously moving forward.  For more information about farms, horse properties, and real estate in the area, call Michael Paul of Realty Oasis at (303) 268-6052.

Although prices for Denver Colorado real estate are down almost three percent, residents of Denver homes are doing relatively well.  The values of Denver Colorado properties have increased tremendously over the past 20 years so the long-term equation remains stable.  Within Denver, zip codes 80204, 80216, 80239, and 80246 registered price decreases over 20 percent in the last year.  Other parts of Denver CO real estate have registered price increases including zip codes 80210, 80211, 80212, 80220, and 80238.

According to the Loan Performance Home Price Index published by the First American CoreLogic, home prices across the United States looked to have deeper issues.  Prices fell 11.3 percent in the nation.  California, Arizona, Nevada, and Florida continue to see declines in home prices.  Metropolitan areas such as Las Vegas, Nevada at 25 percent, Miami, Florida at 27 percent, Oakland, California and Riverside, California at 28 percent and Los Angeles, California at 29 percent made up for the slight gains in other communities.

Texas, South Dakota, Vermont, and Mississippi actually experienced some price appreciation.  Prices were up in the Austin, Texas area 4 percent, Houston, Texas by 3.8 percent, San Antonio, Texas by 3 percent, and Dallas, Texas by 2 percent.  Texas is seeing a faster recovery than other portions of the country.

Something else is going right in Colorado.  The Mile High City has one of the fastest growing populations in North America.  Visitors return to experience the charm, character, and charisma as well as educational, cultural, sporting, and recreational activities.  Nestled at the base of the Rocky Mountains, the City enjoys relatively mild summer and winter climates.  Homes are located in unique neighborhoods steeped with 150 years of interesting history and interwoven corresponding Historic Districts and people from all walks of life mingle at parks, open spaces, boutiques, and pedestrian malls.

For more information about farms, horse properties, and real estate in the metro area, call Michael Paul of Realty Oasis at (303) 268-6052.

These faithful friends help their handlers to go shopping or to restaurants and to do business.  However, when off duty, they prefer the big outdoors plenty of room to play and graze, a small barn and corral.  Let them mow the lawn, add in crimped oats, free choice salt and trace minerals and they will be healthy.  Throw them people food and they don’t fare so well and can become overweight easily, just like dogs.

In order to serve as guides, the smallest of the miniature horses are recruited.  They must be shorter than 26 inches tall, generally weigh 55 to 100 pounds and pass full physicals and intelligence tests to determine if they are suited for the position.  Legs must be structurally sound and they must demonstrate stamina.  Possessing extraordinary vision, the miniature guide horses are extremely sensitive to motion and often detect potential hazards before their trainers.  However, they are trained to remain calm even in noisy and chaotic situations.  Only mini horses capable of meeting the rigorous physical demands of the program are accepted. 

These loyal animals enjoy being groomed, brushed, rubbed, and scratched.  Easy to care for, they can be trained to stand still outside for bathing and grooming.  During summer their coat is thin, allowing them to be comfortable in hotter weather.  Likewise, they grow a wooly coat in the wintertime that will keep them warm in sub-zero temperatures.  Both coats are shed as the alternate fur grows in.

Playtime is oh so much fun for the younger horses when they are able to romp with other foals.  As mature mini horses, they still enjoy games but lose interest in play.  Have you ever seen a miniature horse bobbing for apples in a toddler’s swimming pool?  Just like dogs, off-duty guide horses are known to follow their owners around seeking affection.

The hearty miniature horse outlives his larger counterpart by a third of a lifespan with smaller varieties living even longer.  The lifespan can be 25-35 years.  Two miniatures born in 1971 are still alive today and one dwarf mini horse lived to over 50 years old. 

For more information about farms, horse properties, and real estate in the metro area, call Michael Paul of Realty Oasis at (303) 268-6052.