Top 10 Down Payment Myths

Can you qualify to buy a home now? Many renters actually have the income and credit qualifications to buy a home, and simply need to overcome the down payment hurdle. Too often, myths about home buyer programs can hold you back.

If you’re considering buying a home, you’re probably in deep in research mode right now. In fact, most home buyers do significant online research before engaging a lender or agent. And, if you’re here, you are likely researching about the down payment options for your new home purchase.

Home prices, along with down payments, are increasing, but down payment assistance programs can help make buying a home more affordable. We’re breaking down some of the most common myths about home financing and down payment programs.

MYTH #1 

Down payment assistance programs are only for first-time home buyers.

Nope, not true. First of all, the majority of programs use HUD’s definition of a first-time home buyer: that is, someone who has not owned a home in three years. So, if you are someone who owned before, but are currently renting, you may be a first-timer again!

Not all programs specify that you must be a first-time homebuyer. Make sure you don’t rule yourself out.

One thing that’s true for all programs? They are for owner occupied home buyers, not investors. Most housing agencies will require that the home is occupied as a primary residence in order to qualify.

In addition, homebuyers purchasing a home in a designated target area (typically for revitalization efforts)  may receive special benefits such as higher assistance amounts, more lenient income requirements and the first-time homebuyer requirement may be waived. Veterans are often eligible for a first-time homebuyer waiver, too.

MYTH #2 

Assistance programs are no longer funded.

On the contrary. We found that more than 87 percent of all programs we track have funds available for home buyers. In fact, there are hundreds of millions of dollars in down payment assistance, grants, tax credits and affordable first mortgages available throughout the USA.

Each program has a different funding schedule. Some programs are government-funded and are provided through municipal or quasi-government agencies or non-profits. Others are privately funded, and some are even sponsored by employers. Every state has a collection of programs at the state-level and hundreds of markets around the country offer local assistance as well.

MYTH #3

It’s difficult to qualify for home buyer programs.

Truth: There are many options and opportunities. The only difficult task used to be identifying what programs might be a fit for your situation. The key is doing research early in the home buying process as well as reviewing the application criteria.

To qualify for an assistance program, both the home buyer and the property must meet certain criteria, which vary by program. Standard criteria include property location, type of home, sales price, household income, and home buyer education certifications. There are often additional benefits, or even entirely separate programs, for educators, protectors, healthcare workers, veterans and households with disabled members.

Homebuyers must also demonstrate that they are financially responsible. Assistance programs have credit score thresholds and cash reserve requirements. Most programs will require a little money down from the homebuyer, as well as homebuyer education, especially for first-time homebuyers, to ensure the long-term homeownership success of each new buyer.

MYTH #4

Down payment assistance programs makes home financing more difficult.

Here’s the deal–your home purchase is likely the largest purchase you will ever make in your lifetime. So, you want to get it right and make a wise financial decision, right? When you apply for and use a down payment program, it does require additional paperwork, however the paperwork is similar to what you are already doing when applying for a home loan.

Interview lenders to find someone knowledgeable about the programs in your area and willing to work with you.

Lenders who can offer these programs are called “participating lenders.” They are qualified to write the loans associated with the programs and understand how to incorporate this special financing into the home loan without complicating or prolonging the real estate transaction. This is why it’s important for to seek information about available programs prior to touring homes or even getting pre-qualified. A little homework upfront will ensure a smooth, successful transaction down the road.

MYTH #5

Down payment assistance is only for inexpensive homes.   

Don’t let preconceived ideas about programs throw you off. Down payment programs aren’t just for narrowly defined home buyers and “targeted” neighborhoods of very inexpensive homes. In fact, homes in any neighborhood may be eligible with sales price limits typically ranging from $200,000 to over $700,000 in high-cost markets. In a report we saw from RealtyTrac, we found that 87 percent of homes are eligible for one or more programs.

Some home buyer programs can have income limits of up to 120 percent of the area’s median income (AMI) and higher, which can amount to well over six-figure incomes in countless markets across the country. In addition, some may offer tiered assistance dollars at varying income levels so higher incomes might yield lower assistance amounts, but higher income isn’t an automatic disqualifier. Income limits are almost always based on household size, so limits for a family of five are significantly higher than for a single person.

MYTH #6 

Down payment assistance is only compatible with FHA loans.

While FHA loans are the most common to use with down payment assistance, it doesn’t mean other loan products are off the table. FHA has more flexible down payment requirements than some other loans so it may be a good fit. Many down payment assistance programs are also compatible with VA, USDA and conventional loans.

How do you know what’s the best fit? It really comes down to purchase price and assistance amount. For example, if you have $5,000 in down payment assistance on a $150,000 house, that’s just under FHA’s down payment requirement of 3.5 percent, so you would need to come up with a little extra to complete the down payment requirement.

However, if you have $10,000 in assistance on the same $150,000 house that brings you to more than 6 percent down and may open the doors for conventional financing, helping you reduce your mortgage insurance and fees. Keep in mind there are many other factors, including veterans who don’t have a down payment requirement and buyers in rural areas who can use USDA loans.

MYTH #7 

Down payment assistance programs require longer closing timelines.

It’s true that some of these programs may take a little longer than a typical loan to underwrite, approve, reserve funds, and deliver closing documents. However, the closing timeline must be measured from the date the full down payment assistance application is submitted, not when the opportunity is first discovered. That’s where the misconception lies.

So, do yourself a favor and research these programs early. By completing homebuyer education courses and other requirements upfront, you are shaving off that time. Bottom line: you’re trading a little extra legwork to gain immediate equity and retain some of your savings.

Housing agencies who provide these programs should be considered partners and subject matter experts. Ask your agent agent or lender to keep you informed during the process so you meet your timeline expectations.

MYTH #8

Down payment assistance dollars are never forgiven.

Every market in the country has some type of down payment help. There are a variety of programs available, including some that defer payments or interest and others that offer grants or forgivable loans.

First, it’s important to understand how programs work. Nearly every down payment assistance program creates a lien on the financed property, just like the first mortgage. Homebuyer programs take a subordinate second or even third lien position.

But, not all programs have to be repaid. Grants are typically structured as gifts that do not have to be repaid. The grant funds are delivered to you at closing. Grants that do have to be repaid will typically waive the interest and defer payments. This provides a unique upfront buying power and opportunity for homebuyers.

With deferred loans, payments are often postponed for the life of the loan or grant, with 0% interest, and then the loan is forgiven after a certain number of years as long as you live in the property. Other programs may defer all payments and interest, or never charge or accrue interest, and use proceeds from a sale or refinance to “pay off” the lien.

Some programs do require the loan to be paid back upon sale of the home. These programs still give you an opportunity to get into a home that may not have been affordable or possible otherwise. That’s especially important in markets where rents are quickly on the rise.

MYTH #9 

Sellers won’t accept layered financing.

Are you worried the seller will balk at a contract with financing beyond a typical first mortgage? While that might happen, we also know sellers also want to sell their home…for the best price. The real issue at hand is the fear of longer closing times or complicated closings. Sellers may have heard cash offers are better because they’re quick and will cost them less.

But, is cash really better?

Consider that buyers with down payment assistance are actually coming to the table to extra funds (and more to bargain with), allowing them to compete with other buyers on price and seller-paid costs. It also means the seller doesn’t have to take a lower offer to sell faster to a more aggressive (and less common) cash buyer. In fact, down payment assistance may cover items like closing costs and other seller-paid costs, allowing the seller to gain even more. When agents and sellers open their minds to buyers taking advantage of home buyer programs, it can help all parties involved.

In order to improve the timeline and reduce any seller fears, you should complete home buyer education early, submit loan documents to the lender promptly and do you part to expedite the process from the beginning.

MYTH #10 

It’s advantageous for buyers to put down more of their own money for a bigger down payment.

This myth is largely the result of the poorly documented, subprime loans of the past being incorrectly compared to down payment assistance programs. Today’s programs come with prime loans and required home buyer education. We know the biggest hurdle to homeownership is the down payment — it can sideline buyers who have the income and credit to buy a home. Maybe that’s you. Instead of waiting it out and crossing your fingers for a low interest rate and favorable home prices in the future, these programs can get you in a home much sooner.

Sustainable down payment assistance programs give you a chance to retain some of your savings for long-term homeownership success. These programs also help current homeowners because it aids in neighborhood revitalization. Plus, during the application process, you learn about the responsibilities and expenses of homeownership, including appliance repair, yard upkeep, heating and air checkups, home budgeting and much more.

With down payment programs, you don’t have to leave to put every last penny towards a down payment, leaving you “house poor.” Instead, you can move in with a financial cushion in place, some skin the game, and critical homebuyer education under your belt.

In fact, that’s why delinquency rates on these loans are actually lower than that of the general market. Studies from the Government Accountability Office (GAO) and Harvard’s Joint Center for Housing Studies indicate the delinquency rate on loans using down payment assistance programs is far below subprime delinquency rates, and even lower than market standard FHA delinquencies.

And, in a new analysis, the Urban Institute concluded that state HFA down payment assistance loans are net present value positive, not negative, to the FHA insurance fund.

That wraps up our top 10 down payment assistance myths. Compliments of down payment resource.

Contact us and we can see which program you are eligible for. 

Fed Raises Rates - Don't Panic

AND, as predicted...The fed did raise interest rates this week. So what does this mean for you? If you have an adjustable rate mortgage or a HELOC, your rates are going up. Please budget accordingly. It is predicted that the Fed will raise rates again this year. So if this causes you any anxiety, it might be time to get a fixed rate mortgage or combine your first and second so your payments do not rise in the future. Reach out if you would like to run numbers. Have a great day!
#vegaslender #thebeachgrecoteam #homeloansfromtheheart

I wrote this book and I know it can help you. Would you like a copy? Click the link to get your copy www.27BuyerMistakes.infowebsite.org and start working with a lender who can make a difference.#HelpMoreFamiliesBuy #vegaslender #thebeachgrecoteam 

Check this out!!! Last month, I had a client who I will call "John". John wanted buy a bigger home for his growing family in a better school district, but through no fault of his own his credit score was too low. We hooked him up with our expert credit repair folks that helped him out and today he closed on his completely brand new home in the neighborhood of his dreams. I LOVE helping people!
I'd love to help you too!

#vegaslender #thebeachgrecoteam
Aundrea
702-326-7866
www.iLendLasVegas.com

THREE REASONS WHY PMI COULD BE YOUR FRIEND

THREE REASONS WHY PMI COULD BE YOUR FRIEND

Many mortgage loan programs today allow homebuyers to use less than a 20% down payment when buying a house.  When you do this, you are often required to pay Private Mortgage Insurance (PMI).  This increases your mortgage payment slightly.  Here are three reasons why PMI is actually a huge benefit to you:

1 – PMI Allows You to Buy Now Instead of WaitingFor example, assume houses in your market are going up in value by 3% per year.  If you buy a $200,000 house now, you save $6,000 vs. waiting a year. Plus, that $6,000 in house price appreciation becomes extra wealth that you’ve just created for yourself.  PMI allows you to buy now and benefit from future house price increases.

2 – PMI Frees up Funds to Pay off Higher Interest Rate DebtFor example, if you have credit card debt at 9% and mortgage rates are 4.5%, you may be better off putting less than 20% down.  Instead, you could use a portion of your down payment funds to pay off the credit card debt. PMI allows you to do this.

3 – PMI Frees up Funds to Invest at a Higher RateWhen you use money for a large down payment, you are missing out on the opportunity to earn a rate of return on that cash. Is your rate of return on investments greater than the cost of a mortgage with PMI? If so, it may make sense for you to put less than 20% down, use a higher balance mortgage with PMI, and keep your funds invested.

PLEASE NOTE: This article is provided for illustrative purposes only. It is not an offer or commitment to lend you money, and it is not an advertisement for a specific mortgage or a specific interest rate. 

Contact me to run the numbers for your situation.

TWO WAYS TO BENEFIT FROM RISING HOUSE PRICES

TWO WAYS TO BENEFIT FROM RISING HOUSE PRICES

House prices have gone up in many markets across the country. The chart below illustrates what this could mean for you based on your home value and the rate of appreciation in your neighborhood.



Here are two ways you may be able to benefit if your home has gone up in value:

1 – Cash-out Mortgage RefinanceYou may be able to access some of your newly created home equity by refinancing your mortgage into a higher-balance loan. Cash-out proceeds may be used for:

• Debt consolidation – pay off other debts with higher interest rates
• Home improvements – make new indoor or outdoor improvements to your home
• Any other purpose including other large upcoming expenses

2 – Sell Your Home with Tax-Free Capital GainsIf you’ve lived in your house as your primary residence for two out of the past five years, you may be able to sell it at a profit without having to pay any capital gains taxes.  The limitations on this are $500,000 of tax-free gains for married couples filing a joint tax return and $250,000 of tax-free gains for individuals or married couples filing separate tax returns.  For more details, see my article titled, How to Get the Primary Residence Capital Gains Tax Exclusion.

PLEASE NOTE: This article is provided for illustrative purposes only. It is not an offer or commitment to lend you money, and it is not an advertisement for a specific mortgage or a specific interest rate. 

Contact me to run the numbers for your situation.

Why Veterans aren't buying homes with no money down?

Misconceptions and Lack of Knowledge have kept soldiers from buying a home using their VA benefit.

Why Use Your VA Benefit?

The VA guarantee provides you with more favorable terms, including:

• No downpayment unless required by the lender or the purchase price is more than the reasonable value of the property
• No private mortgage insurance premium requirement
• VA rules limit the amount you can be charged for closing costs
• Closing costs may be paid by the seller
• The lender can't charge you a penalty fee if you pay the loan off early
• VA may be able to provide you some assistance if you run into difficulty making payments

You should also know that:

• You don't have to be a first-time home buyer
• You can reuse the benefit
• VA-backed loans are assumable, as long as the person assuming the loan qualifies

FHA mortgage insurance cut as of 1-27-17

After 2 years, FHA announces the reduction of MIP as of January 27, 2017. They are wanting to expand home ownership and help existing borrowers. 

What that means for you?

The MIP is still for the life of the loan BUT....

Lower mortgage payments if you refinance into a new FHA loan.  

Lower mortgage payments if you haven't purchased yet and are using FHA financing. 

Contact us and we can run the numbers to see if it makes sense for you to refinance and what your new payment looks like. 

FHA ANNOUNCES CHANGE TO ANNUAL PREMIUM

Summary:  FHA is reducing its annual mortgage insurance premium (MIP) by 25 basis points for most new mortgages with a closing/disbursement date on or after January 27, 2017.  See below for the full schedule of the new premium rates announced and refer to FHA’s mortgagee letter.

References/Links: 

·         HUD Announcement: https://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2017/HUDNo_17-003

·         Mortgagee Letter:  https://portal.hud.gov/hudportal/documents/huddoc?id=17-01ml.pdf

The Fed raised rates... How does that affect you and home loan interest rates?

The Federal Reserve ended its zero-interest rate policy in December 14, 2016, raising rates by 25 basis points (0.25%) for the first time in more than a decade.

However, the Fed move did not lead to an increase in consumer mortgage rates. 

U.S. mortgage rates aren't set or established by the Federal Reserve or any of its members. Rather, mortgage rates are determined by the price of mortgage-backed securities (MBS), a security sold via Wall Street.

The Federal Reserve can affect today's mortgage rates, but it cannot set them.  The Fed does more than just set the Fed Funds Rate. It also gives economic guidance to markets.

For rate shoppers, one of the key messages for which to listen is the one the Fed spreads on inflation. Inflation is the enemy of mortgage bonds and, in general, when inflation pressures are growing, mortgage rates are rising.

Mortgage rates are based on the price of mortgage-backed securities (MBS) and mortgage-backed securities are U.S. dollar-denominated. This means that a devaluation in the U.S. dollar will result in the devaluation of U.S. mortgage-backed securities as well.

When inflation is present in the economy, then, the value of a mortgage bond drops, which leads to higher mortgage rates.

This is why the Fed's comments on inflation are closely watched by Wall Street. The more inflationary pressures the Fed fingers in the economy, the more likely it is that mortgage rates will rise.

Thirty-year fixed mortgage rates rose more than half a percentage point in the four weeks after the election of Donald Trump. Rates are solidly over 4% for the first time this year. On a 30-year fixed-rate mortgage for $300,000, each half-point increase adds close to $100 a month to your payment.

So that’s already happened.

With additional Fed rate hikes expected next year, mortgage rates may have as much as another half a percentage point to go. That would put home loan interest rates just under 5% by the end of 2017. 

If you’re all set to buy, don’t let moderately higher mortgage rates worry you. Proceed according to your plan. Although the long-term outlook seems to indicate steadily rising interest rates, we’re building on very low ground. You know that whole “historically low mortgage rates” thing you’ve heard for the last few years? Yeah, we’re still there.

It will take a long climb higher before mortgage rates are back to their 44-year historical average of 8%. In the meantime, you’ll be in the money with a 4% or 5% home loan. Even a 6% mortgage is a significant discount to the average.

Yes, your buying power can be affected by higher interest rates, but that can also be offset by the better wages and greater employment opportunities of an improving economy.

Take a look at today's real mortgage rates now in your area. Your social security number is not required to get started!

Mortgage Insurance for FHA Insured Loans

Updated 9/16/16 

Mortgage insurance is a policy that protects lenders against losses that result from defaults on home mortgages. FHA requirements include mortgage insurance for all borrowers.

Current Up-Front Mortgage Insurance Premium 

The UPMIP is currently at 1.75% of the base loan amount. This applies regardless of the amortization term or LTV ratio.

Current Up-Front MIP on Certain Streamline FHA Refinances

Streamline refinance transactions that are refinancing FHA loans endorsed on or before May 31, 2009, the UFMIP is currently 0.01 percent of the base loan amount.

Current Annual MIP on Certain Streamline FHA Refinances

Streamline refinance transactions that are refinancing FHA loans endorsed on or before May 31, 2009, the Annual MIP will be 55 basis points, regardless of the base loan amount and takes effect on or after June 11th, 2012.

*Revision to the Annual MIP Premium – as per Mortgagee Letter 2015-01

There will be no change in Annual Mortgage Insurance Premiums for all case numbers assigned on or after January 26th, 2015 for the following:

1. On loans with a Loan to Value of less than or equal to 78% and with terms up to 15 years. The annual MIP for these loans will remain at 45 basis points.
2. On terms <= 15 years and loan amounts <=$625,500 - If the loan to value is <= 90%, the Annual Premium remains the same at 45 basis points (bps). If the loan to value is >90%, the Annual Premium remains the same at 70 basis points (bps).
3. On terms <= 15 years and loan amounts >$625,500 - If the loan to value is 78.01% - 90.00%, the Annual Premium remains the same at 70 basis points (bps). If the loan to value is >90%, the Annual Premium remains the same at 95 basis points (bps).

There will be the following reduction in premiums in Annual Mortgage Insurance Premiums for all case numbers assigned on or after January 26th, 2015 for the following:

1. On terms > 15 years and loan amounts <=$625,500 - If the loan to value is <= 95%, the new Annual Premium is reduced from 130 basis points (bps) to 80 basis points (bps). If the loan to value is >95%, the new Annual Premium is reduced from 135 basis points (bps) to 85 basis points (bps).
2. On terms > 15 years and loan amounts >$625,500 - If the loan to value is <= 95%, the new Annual Premium is reduced from 150 basis points (bps) to 100 basis points (bps). If the loan to value is >95%, the new Annual Premium is reduced from 155 basis points (bps) to 105 basis points (bps).

Term > 15 Years

Base Loan Amount

LTV

Effective

Annual MIP

< = $625,500

< = 95.00%

26-Jan-15

80 bps

< = $625,500

>95.00%

26-Jan-15

85 bps

Above $625,500

< = 95.00%

26-Jan-15

100 bps

Above $625,500

>95.00%

26-Jan-15

105 bps

Term < = 15 Years With LTV Above 78%

Base Loan Amount

LTV

Effective

No Changes to Annual MIP

Any Loan Amount

< =78.00%

3-June-13

45 bps

< = $625,500

< =90.00%

1-April-13

45 bps

< = $625,500

>90.00%

1-April-13

70 bps

Above $625,500

< = 90.00%

1-April-13

70 bps

Above $625,500

>90.00%

1-April-13

95 bps

*No Revision to the time period for Assessing Annual MIP

For loans with FHA case numbers assigned on or after June 3, 2013, FHA will collect the annual MIP, which is the time on which you will pay for FHA Mortgage Insurance Premiums on your FHA loan. They are as follows:

Term

LTV %

Previous

New

< = 15 yrs

< = 78

No Annual MIP

11 years

< = 15 yrs

> 78 - 90.00

Cancelled at 78% LTV

11 years

< = 15 yrs

> 90.00

Cancelled at 78% LTV

Loan Term

> 15 yrs

< = 78

5 years

11 years

> 15 yrs

>= 78 - 90.00

Cancelled at 78% LTV & 5 yrs

11 years

> 15 yrs

> 90.00

Cancelled at 78% LTV & 5 yrs

Loan Term

Have more questions, our team is here to help!

702-326-7866 

www.ilendlasvegas.com

Why Does My Online Credit Score Differ From My Mortgage Lender Credit Score?

Lenders use different credit scoring models to gauge your risk as a borrower. Each lender chooses the one that best suits its needs, and some use scores that are weighted according to their industry. For example, a mortgage lender might use a different scoring model than an auto lender. Other lenders use a blend of the scores that are assigned to you by the three credit reporting agencies (CRAs)...

A credit score calculates your risk level for a lender based on your past performance managing debt. What many consumers do not realize is that they have more than one credit score. Numerous formulas exist for calculating credit scores, and each bureau does so a different way. Because no two formulas are the same, your credit scores will differ depending on the type of credit score you pull. In addition, you have a separate credit score with each of the three credit bureaus. If you pull a different type of credit score than your lender pulls, your numbers and your lender's numbers won't be the same.

The majority of mortgage lenders utilize FICO scoring. FICO scores are based on a proprietary formula owned by the Fair Isaac Corp. When a lender requests your FICO scores, it receives a tthree bureau report that contains your FICO score from each credit bureau. Unfortunately, consumers don't have access to all three of their FICO scores. You can purchase your TransUnion and Equifax FICO scores directly through the Fair Isaac Corp.'s website, myfico.com. You cannot, however, purchase your Experian FICO score. Experian releases FICO scores to lenders, but not to consumers.

Most individuals who decide to pull their credit scores online visit what they believe is the most reliable source for the information – the credit bureaus. The credit bureaus, however, sell you their own proprietary score known as a “Vantage Score.”  FICO scores ranges from 300 to 850, Vantage Scores ranges from 501 to 990. Due to its higher range, your Vantage Score will always be higher than your true FICO score. This can lead to disappointment when you visit a lender armed with what you believe is an excellent credit score only to be told that you aren't as qualified as you thought you were. The only way to ensure that the scores you are purchasing are legitimate FICO scores is to buy them directly from the Fair Isaac Corp.

Your FICO score is calculated using the information that appears on your credit report with each credit bureau. You don't have to pay to review the information for accuracy. The Fair Credit Reporting Act gives you the right to pull a free credit report from each credit bureau once each year at  www.annualcreditreport.com. It does not, however, give you the right to free FICO scores each year. Advertisements for free credit scores generally require you to sign up for an annual service or don't offer you your actual FICO scores. The bad news is that if you want real FICO scores, you'll have to pay for them. The good news, however, is that with your real FICO scores in hand, you can rest assured that your scores will match your lender's.

Need more information? Need to check your credit report?

www.iLendLasVegas.com

DID YOU PARTICIPATE IN NATIONAL MAKE A WILL MONTH?

August is National Will Month - Do you have a will?

What do you want to leave behind for your loved ones? One thing is for sure: you don’t want to leave behind a disorganized estate with a sizeable debt. Those who fail to plan for the future often end up leaving a financial and emotional burden on the people they love most. The purpose of National Make a Will Month is to encourage people to take the initiative and plan for their futures. If you don’t have a will drafted yet, we can recommend some attorney's for all the guidance you need. This article will point out common pitfalls of estate planning and offer effective tips to make sure you do it right the first time.

What is a will?
Do’s and Don’ts For Making a Will

Your will leaves detailed instructions for the distribution of your belongings and property amongst your family and loved ones. It also details who will assume legal guardianship of your children if they’re minors. If a will is not left behind, state intestacy laws will determine what happens to your belongings. Family heirlooms and items of value are distributed according the law of the land, and the individual appointed by the state to assume guardianship of surviving children may not be the person you would prefer. To ensure your assets are divided fairly and correctly, a valid will must be drafted.

• Don’t: Make a Do-It-Yourself will. These appeal to those who want to leave a will without paying the legal fees for an attorney to draw it up. Those who opt for a self-made will put their assets at risk. Hiring a qualified attorney is well worth the investment. They will make sure the will is instructive and legally sound, ensuring that your beneficiaries won’t have to hire an attorney to interpret it down the line.

• Do: Make sure that beneficiary designations on insurance policies and retirement plans are consistent with the contents of your will. These policies and accounts will take precedence over designations specified in your will.

• Do: Update your will with a comprehensive estate plan review. An update will help you understand issues regarding your assets in other states, how to validate your will when moving to a new state, and how to keep the titles of your properties.

• Don’t: Expect the terms of your will to be private. During the probate process, your friends and family will learn about the distribution of your assets. To keep the transfer of possessions more private, look into setting up a trust. Through a trust, your assets change hands confidentially and can be protected from divorce claims.

• Don’t: Rely on a will to protect your assets from creditor claims. If you leave behind a sizeable debt, a creditor may seize your property regardless of who you have chosen to give it to in your will.

• Do: Contact an attorney to help you plan your estate.

TOP SEVEN most effective marketing tools for Real Estate Agents

Here are the TOP SEVEN, most effective marketing tools I know of for generating more buyer leads for your Realtors' listings...

#1: Fusion Ads. This involves placing a text capture ad in the local Real Estate Weekly newspaper. For best results, withhold the asking price and invite buyers to text the listing code in order to receive more information, including price and financing options, on their cell phone. Each time someone requests more info, you and your Realtor will be instantly notified via email. Then, as an added-value service, you can follow up by phone on behalf of your Realtor to see if the buyers would like to view the property, get pre-approved or hire a buyer's agent.

#2: Just Listed Cards.  What better way to announce a new listing to the neighborhood than to mail out a Just Listed Card to the entire postal code surrounding the new listing. The postcard should have an attention-grabbing headline like, "Just Listed In Your Neighborhood," and should also highlight any unique financing options available, perhaps with a starburst that says, "95% Financing Available!" Of course, it would also include typical features such as the property description, photos, logo, contact info, etc. However, where this card gets unique is in the withholding of the price and integrating text capture, as explained above.

#3: Lead Capture Sign Riders. A sign rider is a sign designed to piggyback or "ride" along with the Realtor's normal For Sale Sign. It's designed to give a call to action that generates leads. There are two different types of lead capture rider signs: Call Capture and Text Capture. Implicit in its name, the Call Capture version invites people to call a 24-hour hotline to receive "FREE Recorded Info & Price." When someone calls, they can hear all the details in audio format. The Text Capture version, on the other hand, invites people to send a text using their cell phone to request this information. At the end of the day, they both accomplish the same thing -- attracting leads! However, text capture tends to be an easier sell with Realtors because it's still considered relatively new and "cutting edge."

#4: Open House Feedback Forms. Believe it or not, a lot of Realtors don't even use a guest registry at their open houses, let alone feedback forms. Implementing this powerful tool will allow you and your Realtors to collect valuable feedback about the property so you can see how buyers and their agents perceive it. Not only that, it can also help you identify and qualify hot mortgage prospects.

Here are a few critical components to consider including in your feedback forms:

• Chance to win a prize. Let's face it, most people are hesitant to give away their contact info unless there's a sufficiently compelling reason to do so. That's why I recommend offering a chance to win a prize. For example, you could place a headline at the top of the feedback form that says, "Thank you for coming to our Open House. Please give us your FEEDBACK and ENTER to WIN a $100 Home Depot Gift Certificate!"
• Feedback. Get the prospect to rate various aspects of the property, including its overall condition, landscaping, neighborhood, price, etc. You can also ask what the prospect liked most and what they liked least. This critical feedback will help your Realtor make quick adjustments to help sell the property faster at top dollar.
• Qualifying questions. At the end of the feedback form, be sure to include the following qualifying questions: 1) Do you have a buyers’ agent to help you find your dream home?  2) Are you pre-approved for a mortgage yet? These questions will flag hot prospects for you and your Realtor.

#5: Email Marketing. I'm on several Realtors' email lists and it's amazing how few of them notify me via email when they get a new listing. In fact, now that I think of it, I can't even recall one time when I've received a "Just Listed" email notification. Not even once! That means there is a lot of untapped opportunity here. All the Realtor has to do is blast out an email to their database announcing the new listing with a link to their website for people to get more information. It ain't rocket science.

#6: Facebook Marketing. Once the email has been sent out, the Realtor can simply cut and paste the exact same message as a status update on their personal profile and/or fan page in Facebook. This allows the Realtor's friends and fans to receive the announcement in their newsfeed. If the Realtor is smart, they'll ask the reader to "Share" the announcement with their Facebook network, which increases the chances that the announcement will go viral! And here's the best part: like email, it won't cost you or the Realtor a single penny to do this.

#7: Craigslist Marketing. You can help your Realtors post listing ads in the real estate section of Craigslist and other classified ad websites. To make things easier, I provide my realtor partners with a powerful automation tool that allows you to post these ads instantly -- just three clicks of a mouse and you're good to go! It also allows you to track all your hits and unique visitors. Since many people go to these classified websites to look for properties for sale, this is great way to build exposure.

Another cool feature included with this automation tool is the ability to instantly create single property websites and then publish them to fourteen of the most traveled property search engines on the planet with a click of a button. So it's got a huge syndication effect, allowing your Realtors' listings to get in front of more eyeballs, more often.

So there you have it, I've just given you the eighth and final secret for attracting referrals like crazy.  If you're like most of my realtor partners, you might find this a little overwhelming at first. Relax. It's not as difficult as you might think, especially if you utilize my turnkey templates, tools and technology. If you'll simply take the time to learn and implement the steps I've laid out for you, I guarantee you'll see a marked, dramatic improvement in your ability to attract more referrals.

I've given you everything you need to know to get started. Now it's time to take action. Take massive action and get you'll get massive results! I'm looking forward to hearing your success stories as you go forth and make it happen.