Suprime Mortgage Dampen Your American Dreams?

Has the Subprime Mortgage got you a little down on your American Dream? The dream of owning your own home? What has the media done recently? The stock market is like a roller coaster – One day it is up and another day, the sky seems like it is falling. News splashes everywhere talking about foreclosures at an all time high, more houses on the market now than ever before…..

What is Subprime Mortgage?
A sub-prime lender is one who lends to borrowers who do not qualify for loans from mainstream lenders. Some are independent, but many big-time mortgage companies have set up sub-prime departments to take part in this lucurative market.

What is a Subprime Borrower?
A subprime borrower is one who cannot qualify for prime financing terms but can qualify for subprime financing terms. The primary disqualification for mainstream loans is primarily due to weak credit scores.

What could be the Subprime Lending Terms?
With the higher risks of borrowers defaulting, subprime terms are normally at a higher interest rate, some with early pre-payment penalties, etc.

So, what does this really mean to you – if you have not achieve your American Dream?

The fall of the Subprime Mortgage is a good thing. What???? What do I mean? No doubt, I am in the business of assisting people achieve their American Dream. Let me get this straight – I AM ALL FOR THE AMERICAN DREAM. After all, I came to this country in search of the American Dream. But before I go further, let me describe to you what “my version” of the American Dream is about.

My American Dream goes far beyond owning a piece of real estate. Coming from a third-world country and a minority in my very own country where minorities fight to be the fittest to survive, I call America – the greatest Land of Opportunity. In this place, regardless of my race, color, nationality or sex, if I put my mind into anything I want, the great blue sky is my limit. If I can dream it, I can achieve it!!!

So again, what does this mean to you? The Fall of the Subprime Mortgage? You might have just fall onto the “disqualified” category and did I say it is a good thing? There is always a reason why you were disqualified. It is most likely your weak credit history. Evaluate to see where you stand financially in the past three years. Have you ever been late on payments? Are you close to maximizing the credit cards you have? Do you have debts? Are you not saving money each month?

These are some painful questions to ponder on. If your answer could be Yes to one of these questions, reflect to see if you really are ready for homeownership. Your home should be a blessing to you. It should not be something you work, work and work just to make the payments. Worry one day, if you would be foreclosed on because you barely made the cut into qualifying for the loan.

Build your financial strength prior to achieving the American Dream. That means no debts of any kind and a good stash of savings to sit on (3-6 months of monthly expenses). Then your American Dream is a blessing for you and your family.

With the covers of news media splashing foreclosures every day, how sweet is the American Dream now to those who are going through this stress? I am not looking down on those who are in foreclosures today. There could be many, many unforeseen reasons. But if you could build your foundation on solid rock (no debts and savings), should you give yourself and your family that advantage of building the American Dream?

The Power of Focus superceed the Power of Math

Are you getting ready to purchase your first piece of real estate? I remembered what that feels like. It feels both exciting and scary…… Are you not sure you are doing the right thing? Got some debt strap you down for a while?

My advice for saving for homeownership is not typical. I know that. But I do know if you follow these steps, you walk on solid grounds for sure. There is nothing better than knowing every step you take sets up foot firmly in the ground.

My advice: Pay off consumer debts first, then build a good savings prior to buying your first home. Why? Debt can take a toll and joy out of homeownership. Even if you purchase a fairly new home, who is to say that things do not break? Or better yet, what guarantees you to not be in car wreck? I do not claim to be a devil’s advocate but for those whom I had advised and worked with several months prior to purchasing the house ends up feeling at peace when they move it.

How Do You Do It?
Lay out all your debts on paper. List from smallest amount to largest (regardless of interest rates or payment size). Stop your 401K/ investments. That frees up additional cash you can now put towards the smallest debt. Attack it first. Then after you pay off that debt, take that amount you were using, attack the next largest debt.

In this exercise, the Power of Focus superceeds the power of math. While most “mathematical intellects” choose to pay off the highest interest rates, you must realize that when dealing with financials, you are dealing with “emotions” more than you are dealing with “mathematics”. After all, it was emotions that got you into the debt in the first place. What we try to do here is to generate a huge intensity to eliminate debt.

If you have a huge mountain of debt to pay off, you might loose focus after a while because you feel it is going no where. If you attacked the smallest first, you gather more and more intensity about paying the debts off one-at-a-time (smallest-to-largest).

Try it. You will be glad you did. Good luck!

When you ask "How Are You" – Do You Mean It?

When my husband and I came to the US, we found that alot of “Americans” were very “fast” people – I guess we came from a different culture and a different way of doing things… You can say that at the tender age of 21 and 23, we were very naive. We really thought – what we thought were “friends” really asked, “How are you?” and they meant it…. Nope…. It’s just an American way of greeting. Right after that, they do not care for an answer and soon we learnt to be “fast” ourselves….. Never really cared for an answer. “Great….. How about you?” We learnt that that’s the right response. For years, my dear husband and I never really had “real, honest” friends who cared about people as people.

This is not a bashful post. It is not intended to be this way. But read on….
Until we found Hope – our home church….. It’s very amazing, isnt it? Hope Fellowship is our church – we were new believers 4 years ago. Hope is our home and Hope is where we saw people really caring for one another…

To the congregation of Hope Fellowship of Frisco, Texas:

Thanks for being the people we can count on. I know that I feel it’s an honor when people tell me that they can see the love of Jesus shines through me… Now, I am passing the honor over to you. I can feel the love of Jesus out-pouring over you….. Make it a great day for our Lord, my friends!!!

If you are church-shopping, do stop at Hope. Come by the Coffee Bar area to say “Hi”…. I am there most of the time. We have 4 services (from Saturday evenings at 6:00pm and Sunday services from 8:30am, 10:00am and 11:30am). Youth activities and Adult classes on Wednesday nights too…..

Hope Fellowship
9950 Rolater Road
Frisco TX 75035
(Between Preston Road and Hillcrest off of Rolater)

Senior Pastor:
John McKinzie

John is such a cool pastor. He started Hope Fellowship in 2001. John is married to Melissa and has 4 beautiful children. When you look into his eyes, you see that he really cares. I have never seen such real caring eyes

Hope Fellowship is a non-denominational church and our worship service rocks!!! At Hope, we believe that worship is more than a song. It is the way we live and the way we treat people. Because people are very important to God, it becomes important to us too….

Prepare For Rain

Even though this is a real estate blog, there are some topics I am very passionate about. So, I share them on my personal space… This is about motivation.
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This is the story about 2 farmers who needed rain. Both prayed for rain. But only one of them went out to prepare his fields to receive it.

Which one do you think trusted God to send the Rain?

The answer: The one who prepared his fields.

Big Question: Which one are you?

God will send the rain when He is ready. All you do is to prepare your fields to receive it.
We serve a God that opens doors no one can shut. He shuts doors where no one can open. In Revelations 3, God said, “I have placed for you an open door that no one can shut. I know you dont have much strength yet you have kept my word and did not deny My name. Keep a tight grip with what you have so no one can distract you and steal your crown. I will keep you safe in the time of testing.”

God is not through with you. Until He is to move you, you are to bloom where He planted you. Prepare for Rain!!!!

As for me, my heart’s desire are to measure up to God’s plan for my business and my life and to serve God’s purpose in my generation….

What To Do In This Declining Market?

We are hearing the Chicken Little cry all over again. This time is it with real estate. “The sky is falling, the sky is falling”…..

Media headlines are splashing with screaming reports, “Sales of new homes fell in June – largest amount in 5 months and WORST DOWNTURN in 16 years”…. quoted MSNBC. Foreclosure rates are at its highest, it is more difficult to qualify for loans. The National Association of Realtors (NAR) reported recently that the sales of existing homes dropped to its slowest pace since November 2002 and the decline was twice worse than expected. Some economists say that the weakness in housing could linger well into 2008. The rise and fall of the US Stock Market is clearly not helping either. We recently hit the highest point at the Dow Jones at 14,000 points (July 19 2007) but it did not last long. Before we know it, we were riding the roller coaster downhill plunging over 500 points over 2-days by the following week (July 26 and 27). People at Wall Street is calling this a Meltdown.

So, as buyers and sellers in the current real estate market, what should you do in the mean time? Sellers: Should you retract your house on the market, make plans to continue stay where you are at? Is that possible for your plan(s)? Buyers: Is holding off your plans a possibility because interest rates are heading higher? Or would now be a great time because Sellers are more open to offers?

When purchasing a property to house your family, even though there are investment and appreciation factors to consider, what really goes on with the “market” should not be the MAIN deciding factor on whether you want to buy (for buyers) or sell (for sellers). No doubt that it can be much more challenging than ever for Sellers, hence partnering with a local market area expect is key in bringing you the success you are looking for. At the same time, when you purchase a house and plan to make it a home – haven for your family, chances are these relatively “short” term commotions should not affect your major purchase decision.

Be in the Buying or Selling market now to fit your schedule and circumstances now. And not how the market is doing. Since you are making this decision on as long-term decision for your family needs, the short term swings of the real estate and stock markets should not hinder your plans. If you try to make your long-term buying/ selling decision based on short term affects, what you are trying to do is to “time” the market.

Just like participating in buying and selling stocks (even though we know real estate is not as liquid as stocks), market timing known as the attempt to predict the future price of houses, can be a dangerous strategy. It becomes more of a gamble. Is the happiness of your family worth the risks? Hence, sticking to the safer path is like walking on solid grounds.

Purchase or sell a house when you are ready. It is the BEST time to do it. Not when other factors affect you. Worst still, factors beyond your control such as higher interest rates, rising and falling of the stock markets and whether your neighbor is in foreclosure or not.

If you are considering a real estate purchase or sale in the North Texas real estate market, I will be delighted to speak to you. I work in the Frisco, McKinney, Allen, Prosper, Celina, Little Elm, Richardson, Dallas, etc. (Denton, Collin and Dallas counties).

Insights to a Real Estate Agent Checkbook

A consumer said this: “I was really disgusted at the obvious consumer mentality behind the cars both of the realtors I worked with drove – a Lincoln or a BMW. I thought it was disgusting, and I wasn’t sure what they were trying to prove, except to go BuyOwner when we sell, because obviously they make too much in commission”.
The general public do think that real estate agents do make alot of money. Again, we (the real estate people) understand the perceived image of success. Hence, our fancy car, nice suits and definitely big hair-do.

There are more into “real work” to become a resourceful agent. It is definitely more than opening a few doors on a Saturday afternoon and sticking a For Sale sign on a Sunday afternoon. While there are a few who puts in minimal effort, most are hardworking – even much more than a regular 8am-5pm position. Sometimes working over 60-80 hours may not seen uncommon. We eat, sleep and think real estate. We constantly think of better ways to serve our clients whether it is through education, seminars, parties or reading on the internet. Sometimes in the middle of our sleep when a great idea strike, we jump out of bed to write it down. In some extreme cases, this field have cost the high price of our families.

We “invest” in a website, we purchase leads and we pay our real estate dues. We purchase health and disability insurance. Most of the time, these are purchased at a much higher premium than a regular employee – where majority of the insurance costs are beared by the company itself. Like any good planner, we invest in retirement accounts too. We save for our kids’ college education.

In this Internet age, consumers expects us to deliver information immediately. We purchase office supplies and equip our business with high-tech electronics and machines – not just to be cool, but to “wire” ourselves so that we can responsively serve our clients in this instantaneous society.

Advertising and marketing costs are enormous to say the least – even before receiving the wonderful opportunity of serving our clients. Print media can be expensive and internet pay-per-clicks are not cheap either. An agent can spend well over $500/month and yet still may not be as productive.

We attend parties and we go to networking meetings. We visit other real estate offices to sell our listings. We certainly do not just put our houses on the Multiple Listing Service for sale and they magically sell. We sit through countless production meetings even when we rather watch TV or spend an extra hour at home. Some of us work with mentors, or join high-quality real estate training. Such classes often cost thousands of dollars and help us get ready to work with clients serving with top-notch knowledge and enthusiasm.

We study our markets, we preview houses after houses even when we dont have a client to work with in the specific market. We read through email alerts of houses that comes on the market. We get up early in the morning, we go down late at night.

We continuously put ourselves through education. Some are used to meet the minimum state requirements for holding our licenses, but most agents carefully select courses (some take additional classes) so that they can acquire knowledge to assist their clients better.

We hire office assistants to handle the volume we serve. We understand that clients expect high-quality, responsive service. These assistants work behind the scenes. They help us keep our transactions rolling smooth, they help us get answers for our clients. Their awesome help relieve us from day-to-day operations so that we have time to return our clients’ phone calls ourselves.

I do hope that this post will let consumers peek into the world of a resourceful real estate professional. There are more examples to think of. I know I am barely scratching the surface. Just like any good ie high-quality gem, you get what you pay for. We perform all these activities and more. Yet we only get paid when a house successfully sells. So, are we worth the 3% we charge?

Why purchase a Lexus, Acura and Tahoe when we can purchase a Sportege, Elantra and Cobalt since all of them takes us to the same place? Why would a consumer choose to eat at a steak restaurant when a fast food chain serve the same purpose of feeding that hungry stomach? Why would a consumer want to work with an ordinary agent when the best of the best in the market is available? Would the best of the best charge not deserve the commission we make?

I proudly serve the real estate needs in the Frisco, Plano, McKinney, Allen, Dallas, Denton, Anna, Prosper, Celina, Richardson, etc. real estate markets. I will be honored to speak to you.

Down To Earth Home Buying Tips

I’m a huge advocate of encouraging friends and family to make our homes a true blessing. Hence, my thoughts and my blogs will reflect that. More than anything, my family do our best to live by it.
There are some very simple guidelines to follow when purchasing a house to call HOME. However, be prepared that these are not easy to achieve because we live in a society that feeds on “I want it NOW” attitude.

1. Be debt-free. This plan includes becoming debt-free of all store accounts, credit card debts, school loans, car loans, medical bills and any kinds of consumer debts. Only when we become debt-free, it relieves us from the vicious cycle of “minimum payments” and continuous fear of never-ending “emergencies”. Credit cards are not our source of “emergency savior” – get out of that rutt, please! I’m sad to say, for some people, lunch may be an emergency.

2. 3-6 months of living expenses saved.Having a good stash of savings prepare us for the “RAINy days”. To start, have a minimum amount of cash stocked away for “emergency preparedness”. That “special” number may differ person to person. For those of us who are more “emergency” prone, maybe begin with $2000. For those of us whose jobs are “more secure”, life has less risks, then perhaps $1000 may be sufficient to tide small emergencies. Beyond that, attack the consumer debts with a vengence. Be willing to change our lifestyles. Most of all, be prepared to make alot of UNHAPPY sacrifices. A quote that I continuously remind myself when I wonder why I do what I do:
Live like no one else, so that later you can live like no one else (Dave Ramsey).
After having all the consumer debts paid off, continue to save 3-6 months worth of living expenses ie the expenses that is needed for survival. Since we are getting ready to purchase a house, be sure to save a sizeable down payment on top of that. Remember, a house should be a blessing. The difference between a blessing and a curse (after Murphy moves in) is the savings.

3. 15-year, fixed mortgage. Get 15-year, fixed mortgage. Be sure that the payment is no more than 1/4 of our take-home pay. Would other numbers work? Sure it would (or maybe)…. Remember that we are discussing Down To Earth Home Buying strategy for the blessed home? We can work all our lives to buy more or “house” more, but do we really want to live in the Merry-Go-Around Chase the House Payment rutt?

4. Furnish room by room. Dont go out to furnish the ENTIRE house all in one go. When we purchase a house, HomeDepot and Lowes are our second home. It’s not a matter of “if” it would happen, it’s more about “how bad” it will be. Do not begin the whole cycle (Step 1) that we have worked so hard to get out only to fall back in. Shop cheaper alternatives: estate sales, goodwill (blog).

5. Not in the 1st Year.For first time buyers, please dont shop for a house until the 1st Year has pass. Why? The first year of marriage is one of the most crucial years of a married couple’s life. Get to know each other first. Learn to live on one-income (even if both husband and wife works). Learn to live less than we make. Learn to live below our means. It’s already stressful, dont add house-shopping to the list.

Will other steps work? Most definitely. But I could almost assure you that a person who had not had a car payment will tell you the wonderful feeling of not having one. A family who wished they had waited to save enough will tell you that they wished their home is a blessing. I know I may be stepping on a few toes about this. But these are just my humble opinions on How to Make our House a blessing. There’s no big secrets to home buying.

Blessed are those who lives in their house filled with happy days.

I proudly serve the North Texas real estate. I work in the Frisco, Plano, Dallas, Little Elm, Prosper, Celina, McKinney, Denton, Anna, etc. markets. Please give me a call for all your real-estate related needs. I’ll be looking forward to hearing from you.

Frisco – Built for Family Fun

I have called Frisco home since early 2000. I saw Frisco in its small town setting with its flat farm corn lands to now, sprouting growths of new commercial and residential developments. 30,000 residents called Frisco home back when I was a new resident and as of September 2006, over 90,000 people live in Frisco. Frisco is neighbored by Little Elm & The Colony on the west side, Plano & Allen on the south, McKinney on the east and Prosper & Celina on the north part of town. Frisco has about 69 square miles of land area – with lots of potential to house even more residents and businesses.
Frisco has done an outstanding job of creating a city filled with family-oriented activies. Frisco is home to the Pizza Hut Soccer Stadium (17 soccer-fields), RoughRiders’ (minor-league baseball) and NHL DreamCenter training/ practice facity. Parks and trails such as the Warren Sports Complex (Eldorado/ North County Road), Frisco Commons (McKinney/ North County Road), Lone Star Ranch Trail, The Trails at West Frisco are high-quality recreational areas for family who enjoys outdoor activities. Frisco also has an indoor natatorium. The new and improved facility combined with recreation center (at Preston/ Wade) is under construction currently and is expected to open in Fall 2007. Frisco is also home to the Superdrome – an Olympic-ready facility for cycling. If you are looking for great dining places in the North Texas area, you would most likely end up in Frisco. We have a large selection of choices: from authentic Asian, Middle Eastern, Italian, western, and yes all the fast-food restaurants too.
In the few short years, Frisco also attracted many businesses. Residents enjoy Strikz (family bowling center), GattiTown (children’s party & family activity center), Canyons of Frisco (climbing gym with state-of-the-art climbing facility for all ages and abilities) and Ice at Stonebriar (public skating, birthday parties, hockey and figure skating lessons) and more in all sorts of family-friendly environment.
The City Council of Frisco did an awesome job in developing and planning for Frisco. They adopt plans that continue to make Frisco – the best place to live! Frisco was the first city in the US to adopt “Energy Star” as minimum standard for new home construction 2001. They equipped themselves with great building inspectors: responsive to residents’ concerns and they actually returned my phone calls! They adopted great building codes amended for this region to ensure favorable building practice.
I am proud to call Frisco home. I cant imagine my family and I living in another city!

If you are thinking about buying or selling in the Frisco, TX area, please feel free to discuss it with me. I love to see if I may be able to provide value to you.

Frisco TX Real Estate