Clarksville TN Is Growning!

For Information on The City of Clarksville, visit www.clarksvillehomeconnection.com. Contains information on the new Marina, Renovations, Hemlock Plant, and more! Find out why this is a great place to live!

Best of Clarksville Nomination

Crye-Leike, Realtors has been nominated! Come out and Vote for Crye-Leike, Realtors as The Best Real Estate Company in Middle Tennessee!

Interest Rates Market in Review

MARKET COMMENT
Mortgage bond prices fell last week pushing mortgage interest rates higher. Inflation data remained bond friendly with the Producer Price Index data coming in lower than expected across the board. Rates seesawed with stocks. Severe stock weakness last Monday helped mortgage bonds start the week on a positive note. Unfortunately, a stock rebound Tuesday erased Monday's gains and this pattern continued throughout the week. Fortunately, the Fed continued to purchase billions of dollars of mortgage-backed securities in an effort to keep rates relatively low. For the week, interest rates rose about 1/8 of a discount point.
The Treasury auctions will once again take center stage as record debt issuance continues. If signs of foreign demand falter, rates will likely suffer. Consumer confidence data may also move the market. Look for stocks to play a role as well.

LOOKING AHEAD
Economic, Indicator, Release, Date and Time, Consensus, Estimate,
Analysis
Consumer Confidence, Tuesday,Aug. 25,8:30 am, et 48.0

Important: An indication of consumers' willingness to spend. Weakness may lead to lower mortgage rates.
2-year Treasury Note Auction Tuesday,Aug. 25, 1:30 pm, et None
Important: 42-billion of notes will be auctioned. Strong demand may lead to lower mortgage rates.
Durable Goods Orders Wednesday,Aug 26, 8:30 am, et Up 3.2%
Important: An indication of the demand for “big ticket” items. Weakness may lead to lower rates.
New Home Sales Wednesday, Aug 26, 10:00 am, et 390k
Important: An indication of economic strength and credit demand. A decrease may lead to lower rates.
5-year Treasury Note Auction Wednesday, Aug 26, 1:00 pm, et None
Important: 39-billion of notes will be auctioned. Strong demand may lead to lower mortgage rates.
7-year Treasury Note Auction Thursday, Aug 27, 1:00 pm, et
None Important: 28-billion of notes will be auctioned. Strong demand may lead to lower mortgage rates.
Personal Income and Outlays Friday, Aug. 28, 8:30 am, et 0.1% , 0.2% Important: A measure of consumers' ability to spend. Weakness may lead to lower mortgage rates.
U of Michigan Consumer Sentiment Friday, Aug. 28, 10:00 am, et 64.8
Important: An indication of consumers' willingness to spend. Weakness may lead to lower mortgage rates.

DURABLE GOODS ORDERS:
Durable goods orders are generally believed to be a precursor of activity in the manufacturing sector because manufacturing must have an order before considering an increase in production. Conversely, a decrease in orders eventually causes production to be scaled back; otherwise the manufacturer accumulates inventories, which must be financed.
Unfortunately, durable goods orders data has many drawbacks. The first problem with the orders data is that they are extremely volatile. The volatility of the data usually is attributed to the civilian aircraft and defense components of the figure. For example, if Boeing has a big order for one of its jumbo jets, the civilian aircraft category can change by $3-4 billion. The same scenario is evident when an aircraft carrier is ordered, surges in the defense category result. The second problem with the data is that orders are continuously being revised. There are many times in the past when the advance report on durables showed an increase while a revision a week later showed a decrease. The revised data is found in the report on manufacturing orders, shipments, and inventories. Since the data is very volatile and difficult to forecast, there is quite often a huge disparity between the actual release and the initial projections. Be cautious heading into this release.

5 Mortgage Tips

1. Know what you can afford.

Review your monthly spending plan to estimate
what you can afford to pay for a home, including the
mortgage, property taxes, insurance, and monthly
maintenance and utilities. A worksheet for developing
your monthly spending plan can be found at www.
federalreserve.gov/pubs/mortgage/MORBRO_2.
HTM#Worksheet1.

Make sure you save for emergencies.
Plan ahead to be sure you will be able to afford
your monthly payments for several years. Check your
credit report to make sure that the information in it
is accurate. A higher credit score may help you get a
lower interest rate on your mortgage. Find information
on getting a copy of your credit report at www.ftc.
gov/bcp/edu/pubs/consumer/credit/cre34.shtm .

2. Shop around—compare loans from lenders
and brokers.

Shopping takes time and energy, but not shopping
around can cost you thousands of dollars. You can get
a mortgage loan from mortgage lenders or mortgage
brokers. Brokers arrange mortgage loans with a lender
rather than lend money directly; in other words, brokers
sell you a loan from a lender. Neither lenders nor
brokers have to find the best loan for you—to find the
best loan, you have to do the shopping. For more information
on mortgage shopping, see Looking for the
Best Mortgage—Shop, Compare, Negotiate at www.
federalreserve.gov/pubs/mortgage/mortb_1.htm .

3. Understand loan prices and fees.

Many consumers accept the first loan offered and don’t
realize that they may be able to get a better loan. On
any given day, lenders and brokers may offer different
interest rates and fees to different consumers for the
same loan, even when those consumers have the same
loan qualifications. Keep in mind that lenders and brokers
also consider the profit they receive if you agree to
the terms of a loan with higher fees, higher points, or a
higher interest rate. Shopping around is your best way
to avoid more expensive loans.

4. Know the risks and benefits of loan options.

Mortgages have many features—some have fixed
5 Tips for Shopping for a Mortgage
interest rates and some have adjustable rates; some
have payment adjustments; on some you pay only the
interest on the loan for a while and then you pay down
the principal (the loan amount); some charge you a
penalty for paying the loan off early; and some have
a large payment due at the end of the loan (a balloon
payment). Consider all mortgage features, the APR
(annual percentage rate), and the settlement costs.
Ask your lender to calculate how much your monthly
payments could be a year from now, and 5 or 10 years
from now. A mortgage shopping worksheet can help
you identify the features of different loans. A sample
of a mortgage shopping worksheet can be found at
www.federalreserve.gov/pubs/mortgage/worksheet.
pdf . Mortgage calculators can help you compare
payments and the equity you could build with different
mortgage loans. See the Board’s mortgage calculator at
www.federalreserve.gov/apps/mortcalc/.

5. Get advice from trusted sources.

A mortgage loan is one of the most complex, most
expensive financial commitments you will ever
assume—it’s okay to ask for help. Talk with a trusted
housing counselor or a real estate attorney that you
hire to review your documents before you sign them.
You can find a list of counseling resources at NeighborWorks
(www. Nw.org/network/home.asp) and on
the U.S. Department of Housing and Urban Development’s
(HUD) website (www.hud.gov/offices/hsg/
sfh/hcc/hccprof14.cfm)
or by calling (800)569-4287.
The Federal Reserve Board
Visit www.federalreserve.gov/consumerinfo for more information on mortgage and other consumer topics.
0709

What's Going on with Inflation and Interest Rates?

What's Going on with Inflation and Interest Rates?

If you've seen the news lately, you know concerns about inflation are increasing. But what does it really mean to you?
The fact is, inflation is a very serious issue, and it will likely be on the rise as 2009 proceeds...and along with it, home loan rates will rise too.
To help you learn more about this important topic, I want to send you a link to a short video, featuring the nation's foremost mortgage industry expert. In this video, you'll learn how inflation impacts interest rates and what the outlook is for down the road.
Because home loan rates will be on the rise, if you or any of your family, friends, neighbors or co-workers have been considering a purchase or refinance, now's the time to act.
Please contact me today to discuss your specific situation, and feel free to forward this email and video link along to others that you think might benefit from it as well.
Watch the Video
Sincerely,

Presented by:
Kay and Richard Schillo, The Schillo Connection
Danny Story, U.S. Bank Home Mortgage

$8,000 First Time Homebuyer Credit

$8,000 FIRST TIME HOMEBUYER CREDIT

The American Recovery and Reinvestment Act of 2009 features an $8,000 tax
credit for first-time buyers who purchase a home on or after January 1, 2009 and before December 1, 2009.

· The credit is equal to 10% of the cost of the home, up to a maximum credit of $8,000.

· Taxpayers can claim the credit on their 2009 return or they can file an amended 2008 return to receive the credit now.

· The new tax credit does not have to be repaid if the home remains the main home for at last 3 years.

· The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.

· Only first-time homebuyers can take advantage of the tax credit. A first-time homebuyer is defined under the tax credit as an individual who has not owned a home in the last 3 years. For married filing jointly, both people must meet the first-time homebuyer test to that the credit on a joint return.

· Eligible properties include anything that will be used as a single-family residence - including condos, house trailers and townhouses.

Just Listed in Farmington

THE SCHILLO CONNECTION

&

MORRISON CONSTRUCTION

PRESENTS "THE SULLIVAN"

Over 2,700 square feet in highly desireable "Farmington" located on Rossview Road, Exit 8 just past the Industrial Park and across from "Stones Manor". Offered at $295,000. Call the Schillo Connection for more information on this new home.

Mortgage Market in Review July 20, 2009

MORTGAGE MARKET IN REVIEW - JULY 20, 2009

Mortgage bond prices fell pushing rates higher following stronger than expected inflation data last week. The producer price index and consumer price index both came in higher than expected fanning inflation fears. Inflation fears generally cause bond prices to fall and interest rates to rise, which we saw last week. Stronger than expected housing starts, retail sales, and industrial production data piled on to help equities rally at the expense of mortgage bonds. It appeared the Fed tried to step in Thursday to stem the losses. For the week interest rates rose by over a full discount point.

The leading economic indicators data will set the tone for trading this week. With so few data releases expect oil and stocks to factor into trading.
LOOKING AHEAD
EconomicIndicator
ReleaseDate and Time
ConsensusEstimate
Analysis
Leading Economic Indicators Monday, July 20,10:00 am, et Up 0.5%
Important. An indication of future economic activity. A smaller increase may lead to lower rates.
Weekly Jobless Claims Thursday,July 23,8:30 am, et 540k
Moderately important. A measure of employment. A larger increase in claims may bring lower rates.
Existing Home Sales Thursday,July 23,10:00 am, et Up 0.6%
Low importance. An indication of mortgage credit demand. Significant weakness may lead to lower rates.
Revised U of Michigan Consumer Sentiment Friday,July 24,10:00 am, et 64.6
Important. An indication of consumers' willingness to spend. Weakness may lead to lower mortgage rates.

CONSUMER SENTIMENT

In the US the consumer is often seen as the driving force of the economy. A large percentage of the total economic output is for personal use. Analysts attempt to predict the future spending patterns of consumers to gauge economic activity.

The Michigan consumer sentiment index is one piece of data used to measure consumer attitudes. The index is derived from a telephone survey, which gathers information on consumer expectations of the overall economy. The preliminary report is released around the 10th of each month and then is revised throughout the remainder of the month. It is significant in that it provides a precursor into consumers' willingness to spend in the months ahead. However, many analysts point out that willingness to spend does not always convert to actual expenditures.

Despite economic uncertainty, liquidity issues, housing market weakness, and high energy costs, American consumers continue to spend. However, many analysts question whether consumers can continue to buoy the economy. The most recent sentiment data showed continued uncertainty. "Consumers concluded that the economic downturn would last longer and their personal finances would not recover as quickly as they had previously expected," the University of Michigan Survey said in a statement

This week's release will be eagerly anticipated. Look for any variation from estimates to cause mortgage interest rate volatility. Signs of eroding consumer confidence could lead to improvements in mortgage interest rates. However, stronger than expected figures could spike rates higher.

Remember that mortgage interest rates remaining historically favorable and are subject to change on a daily basis. Last week was a prime example of the danger of floating into the economic data. Rates worsened Tuesday and Wednesday with the higher than expected inflation figures. Capitalizing on current levels is wise.RATE LINK is provided by Market Information for Mortgage Professionals. 1-800-938-5193. Copyright 2009. All Rights Reserved. Mortgage Market Information Services, Inc. The information contained herein is believed to be accurate, however no representation or warranties are written or implied.

Improve Your Home's Marketability Prior to Listing

Improve Your Home's Marketability Prior to Listing

Taking care of necessary repairs before putting your house on the market is important for yielding a top price and ensuring a quick, hassle-free sale. The most common areas of concern are the roof, gutters and downspouts. Repair of missing or peeling exterior paint may also be a condition of the loan. The following are some simple repairs that make a huge difference in marketability and sale price: Replace washers in leaking faucets. Fix handrails and repair steps. Replace light bulbs and fixtures where necessary. Make sure windows open and close. Eliminate wood to ground contact around the house. Replace loose or damaged tile or vinyl.

Summer Tips for Saving Energy

Summer Tips for Saving Energy

Home energy costs will rise with the temperature this summer, as air conditioning comes into play and continuing tight natural gas supplies put upward pressure on electricity prices. To help consumers reduce their home energy bills and help the nation reduce overall energy use, the U.S. Department of Energy and the Alliance to Save Energy (ASE) have joined forces on a year-long Powerful Savings campaign and offer consumers tips on smart energy practices and energy-efficiency home improvements. See ASE lists of Smart Energy Practices and Energy-Efficiency Improvements. Also, see ASE's No-Cost Low-Cost Tips for Saving Money & Energy.
________________________________________

Choosing The Right Real Estate Agent!

Choosing The Right Real Estate Agent!

There's a common saying in the real estate industry regarding the vast number of agents in the business: "If you don't have any friends who are agents, then you probably don't have any friends at all."

With so many agent out there, how can you make an intelligent decision? Do you choose a friend, neighbor or coworker? Should you work with an agent at a large firm, a small firm, a franchise or an independent?

While there's an exception to every rule, and every marketplace has its own nuances, here are some solid rules to apply when you want the best representation to protect your interests.

Demand Experience :
The real estate profession is plagued by high turnover. This creates a workforce that is made up of many newcomers. While there are brand new agents with good intentions, why trust one of the largest investment you'll ever buy or sell to someone without experience?

Always look for an agent with at least two years of experience. Anyone still in the business after two years has probably learned at least the fundamentals of real estate.

Look for Commitment:
Another problem we have in the industry is a large number of part time and recreational salespeople. These folks have either retired from some other career, work in real estate seasonally or are earning a second income for the family and honestly don't need to work full time.

No matter how long they have been in real estate, their lack of full-time commitment makes it impossible for them to keep up with the vast changes in law, marketing and business practices that are occurring in the profession today.

If an agent isn't working at least thirty hours a week, fifty weeks a year, look for someone else.

Consider Education:
In the majority of states, the requirements for real estate licensing are substantially less than those for cutting hair. In Michigan, for example, all that is required is a forty-hour class and a multiple choice test. You cannot rely on licensing to indicate competence. And, unfortunately, many agent's real estate education ends with their pre-license education.

While there are numerous advanced real estate education courses available, the only technical and competence based program available nationwide is the Graduate, REALTORS® Institute (GRI) series, which is administered under the direction of the National Association of REALTORS®.

A REALTOR® who completes the fifteen eight-hour modules, and passes examinations, may then use the designation of GRI. While only 15%-20% of agents have earned this accreditation, it should not be too difficult finding a GRI in your marketplace as they will commonly print the designation behind their name in advertising as well as on letterhead and business cards.

Conduct Interviews :
Before you hire an agent to help you buy or sell a home, you should interview at least three agents in person. In order to do this, first get recommendations from friends, family and neighbors. Then look on the web, in homes magazines and the local newspaper to see what kind of marketing the various companies are doing in your area and call a few that impress you.

Then make brief fact-finding calls to determine which of the agents on your list are full time, experienced and either hold the GRI designation or are at least working aggressively toward it. You will probably need to call ten to fifteen agents in order to find three that are worth interviewing.

The interview itself need not be a formal one. It is simply an opportunity for you to meet the candidate and explain your needs; and to determine whether you would be comfortable working with them. Ask whatever questions you like, or simply explain your goals and listen carefully to what they propose to do for you in meeting your needs.

The Decision:
If you follow the suggestions above, you will find that there are excellent agents working for firms both large and small; both franchised and independent. Thus, the real decision must be made based on the competency of the individual agent you will be working with on a day-to-day basis.

WHAT YOU NEED TO KNOW ABOUT BUILDING YOUR HOME: FROM BREAKING GROUND TO WALK THROUGH

From Breaking Ground to Walk Through

Stay on top of these 10 things as your home is built By Diane Benson Harrington

A Consumer Reports investigation discovered that 15 percent of new homes have serious problems, some of which don’t show up until months or years after move-in.
Once your close on your loan, the house is yours — so be sure your expectations and the sales contract specifications have been met, warns the National Association of Home Builders. Here are several things to stay on top of as the home goes from blueprints to reality.

1. Fulfill your (realistic) dreams If you’re building your own home, get it right before ground is ever broken. If you’ve always wanted a house where sun streams in through huge living room windows, then putting your house on a shady forest lot and downgrading to smaller windows to save money isn’t going to meet your expectations. A good architect and builder will help you get as close as possible to your dreams within your budget and the realistic constraints — and will make sure you know when you’re not getting something you wanted. To be safe, make a wish list of all the things you really want in a house — and mark them off as they’re drawn into your new home or cross them off if they don’t make the cut.

2. Site the house properlyYou can do plenty of things to build efficiency and low maintenance into a house – but the way it sits on your lot can play a big role. Lots of south-facing windows can help heat the home in the winter (but be sure you can cover them up in the summer). But those windows won’t help much if that south side is covered with trees that block the light. If you’ve chosen a lot with a lake, is the house designed to truly give you the best views from the right rooms? Is the lot designed properly, with the ground sloping away from the house? If not, expect water damage. Does water slope away and then puddle in particular areas of your yard? Are gutters designed well enough to get water away from the foundation? (Use a hose to check, if necessary.) Even drainage means fewer problems.

3. Triple-check the architect and builderDo a Google search, call your local Better Business Bureau, check your local newspaper’s archives, and inquire at your city or county’s planning/building/zoning department. You don’t want to move forward with a builder who has a spotty reputation. Other places to check: Homeowners for Better Building , where dissatisfied individuals exchange information about problems and solutions. Your city’s building inspection department can also help you learn what types of problems typically crop up in your area — whether its mold, problems with a certain type of siding, drainage issues, etc. Be aware that many of these building inspectors are notoriously overworked, and that some builders find ways to get around the required permits and building standards.

4. Ask about materials and construction methodsConsumer Reports discovered that faulty foundations, moisture intrusion, and shoddy framing typically were at the root of new-home complaints. Homeowners discover the problems down the road when huge cracks start appearing, walls start rotting, and windows and doors don’t close right. Tiny cosmetic problems may crop up as a new house settles — but bigger issues like these are not a good sign. Make sure your builder knows you’re aware of potential defects and ask whether he’s using any products that have been the subject of consumer complaints or lawsuits. Be wary of builders who plan to construct your home too quickly. Today’s average is 90 to 120 days. But faster doesn’t always mean better; sometimes it means unfortunate shortcuts or less skilled workers.

5. Key in on construction details. Don’t ever hesitate to walk through your house during the many phases of construction. Workers should pay as much attention to detail on the parts of your house that will be covered with drywall and paint as those that will show once the home is finished. Look for things like expertly seamed drywall (if you can see the drywall tape after the skim coat goes up, you can bet you’ll see it after the paint goes on, too), molding that fits tightly in corners with no gaps, weather-stripping around doors and windows, perfect paint jobs, etc.

6. Be cognizant of change orders. Any time you change something after construction has started, you can expect to cough up more money. Keep an eye on your budget, because while little upgrades here and there are tempting, they add up quickly (not just for products, but many times also for labor). When you’re doing walk-throughs of the house at various stages of completion, be sure these changes have all been taken care of. Items that weren’t in the original plans often can be missed.

7. Embrace quality landscaping. Trees and shrubs can make a huge difference in your energy bills, so make sure a qualified landscape contractor is helping you with decisions. You don’t want tree roots to eventually impede your water lines, nor do you want their limbs to eventually grow into electrical or cable lines. And you don’t want to plant sun-loving flowering shrubs in the shade of a big tree. Will the plants you’ve chosen provide the appropriate screening from neighbors or noisy highways? Don’t just think about how the plants look now. Picture them 20 years down the road. Consider maintenance, too. Will you benefit from an underground sprinkler system? Will a hose and sprinkler reach to that bed of flowers you want to plant near the sidewalk? Do you have hose bibs where you need them — one close enough to wash your car in the driveway, others well placed on the front and back of the house?

8. Check everything Use a small lamp or hair dryer to test every electrical outlet. Turn on every faucet and spigot, flush every toilet. Confirm that all appliances are working properly, including air conditioning and heat. Are carpet and other flooring installed to perfection? Were closets painted? Do all doors and windows open, shut and lock easily? Consider hiring an independent home inspection engineer. It may seem like an unnecessary additional cost — but it could save you thousands of dollars and headaches.

9. Know your warranty The warranty on your home from your builder covers problems with workmanship and materials — but it doesn’t cover issues that crop up because you didn’t do your job as a homeowner. For instance, notes NAHB, if your roof starts leaking six months down the road because of faulty workmanship, your warranty would cover it. But if it’s leaking because water backed up in clogged gutters you never cleaned, the builder is not responsible for repairs. Oven on the fritz? Don’t call the builder; appliances usually have their own warranties.

10. Read those manuals Sure, you’d rather rearrange your furniture than read owner’s manuals, but if you don’t learn precisely how your new appliances and other home gadgets work, you may inadvertently break them. Ideally, your builder will walk you through the operation of every appliance — but read the manuals to be safe.

AN EXPERIENCED REAL ESTATE AGENT WILL WALK YOU THROUGH THE PROCESS FROM BEGINNING TO END! CALL "THE SCHILLO CONNECTION" FOR ALL YOUR HOUSING NEEDS!

For more information, look into the book "Home Building Pitfalls" by Lawrence Thomas and Robert Batcheller. It takes readers from researching the community through the sales process through handling problems after you’ve moved in.