PatO Homes - the Right Move!

Feds Lower Rates by Rich Hebert of Lending Edge Mortgage

Rich Hebert Vice President Lending Edge Mortgage Phone: 817-485-4155 Fax: 817-849-8849 rich@richhebert.com www.richhebert.com

Fed Lowers Rate by .25 Point – Again 12/11/2007 The Federal Reserve cut its Fed Funds Rate again for the 3rd straight time.  And while this important decision has many implications, there's still some debate among experts about what this means to the economy as a whole. The Federal Reserve has said when it meets again, their bias may be to continue to lower rates and try to hold off any signs of recession.  No one is certain how market volatility and inflation concerns will affect their future policy and decision-making. Bottom line: Take advantage of this opportunity while you still can. Call your customers and let them know that rates are lower so right know is a great time to buy, Rates are at 30 year lows again! If you're looking for a lower interest rate for refinancing or buying a home, this could be your best opportunity.  If you have an Adjustable Rate Mortgage, now is the time to refinance into a fixed-rate loan. If you have a Home Equity Line of Credit (HELOC) or credit cards tied to the Prime Rate, the Fed's cut in the Fed Funds Rate just put a little money in your pocket. Borrowers waiting for a lower fixed-rate mortgage may be waiting for a long time. The chart below clearly shows how Fed Funds Rate cuts do not translate into cuts in fixed-rate mortgages. In January 2001, the Fed Funds Rate was at 6% and 30-year fixed rates averaged 7.03%. By December 2001, following 4.25% in cuts throughout the year, home loan rates were actually up to 7.07%. Yes, we may experience some temporary improvements in rates in the coming weeks, but the markets will remain volatile as long as inflation and recession are a possible threat to the Federal Reserve's long-term economic policies. If you're looking to refinance or buy a new home, call me. I will show you why waiting can cost you a lot of money. Rich Hebert Vice President / Branch Mgr. Lending Edge Mortgage 500 Grapevine Hwy. Suite 402 Hurst, TX 76054 817-485-4155 Office 817-849-8849 Fax 866-536-9299 Toll Free rich@richhebert.com www.richhebert.com

Coordinating buying and moving

One of the hardest things to do when you are leasing and looking to buy a house is to try to figure out when you should start the process. Most places want a 60 day notice and will charge you an extra fee if you do not follow this to a tee.

Let’s say that your lease is up June 30^th and its Jan 1^st.

Usually from the time that you sign a contract and it’s accepted it takes 30 to 45 days to close and take possession. This means that to move at the end of June you should have an executed contract by May 15^th to June 1^st. Also to make it even easier for you the buyer, you get a month reprieve from a house payment sooo if you close on your house in June, your first house payment will be August. So even if you close in May, your first house payment would be July. So let’s add the 30 to 45 days to that and you could sign a deal in late March and not have a double payment.

You need to start checking the area you want to be in Mid January. You should actively start looking at homes mid February. From this time on if you see something that knocks your socks off you could still make an offer.

Stay ahead of the move date and save yourself stress and give yourself time to make a great decision!!

Should I wait to list my house when it’s a Seller’s Market??

Sounds like an easy answer……

Recently I heard a different perspective on this question….

Some people are thinking it’s a buyers market and I am waiting for the market to change before I put my house on the market. It does make sense that as a seller you want the market in your favor so that you can get the most money for your home. Sounds good so far….

The twist comes into play because once you sell your house you enter the buyers market. The buyers market is good when there is a lot of inventory on the scene like the market today. As a buyer you want a deal. A lot of inventory gives the buyers choices and sellers that are willing to deal.

If you have to sell and it’s a sellers market you get more for the sell and as a buyer you pay more for your new house. So the extra money you made on the sell in the sellers market you spend when you become a buyer in the sellers market.

Let’s look at the same scenario in a buyers market. You make less on the sale of your house but when you become a buyer you pay less for your new house.

So…do you sell if it's a buyers or sellers market?? The answer is yes. Both make sense. Also throw in rates are good right now… Don’t wait. It make senses either way!!!!

Is Service Dead??

Customer Service is Dead!!

Service is Dead. Some day soon I will write a book on 10 things I learned in 25 years in the restaurant business. Part of the problem is our doing. A demand for convenience has a restaurant on every corner which is filled with employees and managers and general managers. These people are not trained and mostly fend for themselves. Some learn good customer service...most do not. While we complain about poor service we continue to go back to that establishment for convenience (or because we just love to get rotten service). I was amazed at the number of people that would tell me I am NEVER coming back and I would see them the next day!! The places we frequent do not have to change because we gripe but we go back. They give lip service to customer service but the cost to train in their mind is not worth it.

Here is what I would do...one not is complain to the employee. Complete waste of time. I do complain to the manager which is almost a complete waste because the manager is usually swamped and is barely hanging on. I do complain to the complaint desk or a supervisor. If the issue is not resolved I do not go back no matter how convenient it is. That is the only way to spur change is to hit them in the pocketbook.

The 7-11 in my area recently went to a new franchise owner. Now the employees are forced to say hello to everyone that walks in. Hokey?? I think not. Everyone wants to be acknowledged. Everyone wants to feel wanted. During my 25 years in the restaurant business I did customer service seminars. One question I would ask the group was who gives the best customer service. The answer I always heard from someone in the group was Cicis Pizza. Cici's pizza is a buffet line self serve joint. What they do is when you enter the restaurant someone from somewhere says welcome to CiCi's. You may not see the voice but you always hear a welcome. People want to feel welcomed. Works for Cici's and will work for 7-11. 

Do we really seek convenience or good service. The reality is both are rare.

What do you do when comforted with poor or rude service??