“Paper Shuffler”

When buying a home there is a lot of paperwork that is involved and a client can feel a little pressure with being asked to provide personal information as well as duplicate copies of paperwork already sent. 

One of our recent clients sent this letter into the loan processor in response to the request for more documents. Name and addresses have been changed but the humor is all there. 

Hope you enjoy reading it as much as Nancy and I did: 


April 18


To Whom it May Concern:


This letter is to verify the intent of Mr. and Mrs. Smith to reside at the address of 123 W. Main Street as their primary residence, should the purchase be completed on May 21.

Mr. and Mrs. Smith currently reside at 5678 W. Cedar Ave Brighton, CO.The original intent was to place this home on the market as soon as possible to sell, rolling the equity into the Main Street residence.  It has now become clear that Mr. and Mrs. Smith will be spending the rest of their lives doing paperwork for the Lender team, and will in fact never be able to put their home on the market, as they have no time to prepare it for sale.

This, however, is not a problem, as they have been assured through all aforementioned paperwork that they can indeed afford to carry both homes.  There is intent to sell at least one of their children on the black market to help insure that they have adequate funding for the purchase of the home.  Not to worry, proper documentation, in triplicate, including proof of deposit, will be provided for the sale of said child/ren.  Should this be a cash sale, the Smith’s fully intend to get six years worth of financial statements, tax returns, proof of employment, and blood type and sample from the purchasers to insure that they do indeed HAVE the money which they have already handed over.

Should Mr. and Mrs. Smith be unable to sell any of their offspring, a secondary plan is in place to remove the children from school and teach them the lucrative trade of finding, sorting printing, signing, scanning and emailing paperwork to the Lender team.  Should they master this skill, as we have confidence they will, we can then re-initiate the plan of getting the current residence ready for sale.  Not to worry, we will supply adequate documentation to support this plan, to include training manuals, proposed copying/scanning schedules, and soft and hard cost breakdowns, to include cookie breaks and potty breaks.


If there are any questions, please feel free to email me.  Please don’t forget to attach to the email four more requests for further support of financial stability.



David Smith 4/18

Disgruntled paper shuffler

Understanding Credit Ratings

Credit plays a role in everything from buying a home, to signing up for cell phone service or utilities, to getting car insurance. A credit score is a snapshot taken by the three leading credit bureaus, TransUnion, Equifax and Experian, that allows lenders to determine whether or not you will be extended credit, the amount of credit and even the terms (interest rate, loan amount, repayment schedule). 
While I am not a credit counselor, I can give you a little bit of information about credit scores and some basic steps to keep them healthy, which are important for you to know when applying for home financing. 
What is a credit score and how is it calculated? 
A credit score is a number between 300 and 850 that is used to predict how likely you are to pay your bills. Many of the companies with whom you have a loan or a line of credit report back to the three credit bureaus information such as whether you pay on time, your credit amount, etc. Your credit score is calculated from this personal financial information. The higher your credit score, the better the credit terms you will receive. The lower your score, the higher the interest rates you may have to pay. Generally, scores over 700 are considered excellent while scores below 600 are considered poor. 
You are eligible for one free credit report per year from each of the three credit reporting agencies. Take advantage of this opportunity to monitor your credit report and ensure there are no mistakes or surprises with your credit. 
How can I improve my credit score?* 
Although there are no quick fixes when it comes to improving your credit score, you can take steps to rebuild your score over time:

  1. Continue paying your bills on time — your payment history matters.
  2. Don’t max out your cards or even run the balances up high.
  3. Hold off on applying for new credit or cancelling an old card, since length of credit helps.
  4. Pay down high balances, but don’t just transfer debts among several lenders.
  5. Settle any collections or past due accounts that you possibly can.
  6. Dispute and resolve any inaccurate items in your credit report. The last two years of your credit history are the most important.

Credit scores affect your life — beyond just mortgage interest rates. 
Credit scores are often used in determining prices for auto and homeowners insurance. Employers have also begun using the scores as part of background checks when making hiring decisions. The practice of using credit scores in nontraditional ways is expanding. It’s more important than ever to educate yourself about credit.




Kathleen O’Brien
Loan Officer
W.J. Bradley Mortgage Capital, LLC
Office: 303-320-4015


Based Based
On Properties On Properties This report summarizes the sales of
Under Contract Closed residential real estate units during the
reported-on period. Please note:
This Month 4,431 2,953
Last Month 3,090 3,400 1) The reported units have been
Percentage Change + 43.4% – 13.1% adjusted for the calendar month
(as defined by MLS cut-off dates each
This Month, Last Year 3,486 2,470 month) in order to put such periods on
Percentage Change, + 27.1% + 19.6% a comparable basis.
Compared To This Year
2) Under Contract units reflect
Year to Date, This Year 4,431 2,953 those properties reported as “under
Year to Date, Last Year 3,486 2,470 contract” during the period – i.e., a
Percentage Change + 27.1% + 19.6% binding contract was executed
between buyer and seller.
3) Closed units reflect the passing
of title. The close date generally lags
30-90 days behind the under contract
UNSOLD HOMES ON THE MARKET: date and is often distorted by many
outside factors unrelated to the extent
This Month 7,094 of real estate activity.
This Month, Last Year 10,443
Percentage Change – 32.1%
This representation is based in whole or in part
This Month 7,094 on data supplied by Metrolist, Inc. Neither the
Last Month 7,706 member Boards of Realtors nor their MLS
Percentage Change – 7.9% guarantees or is in any way responsible for its
accuracy. Data maintained by the Boards or
WEEKLY SALES RATE: their MLS may not reflect all real estate activity
in the market.
This Month 14.43%
This Month, Last Year 7.71%
Family Condos Residential
This Month $274,754 $170,769 $301,827
Last Month $289,926 $186,877 $315,451
This Month, Last Year $248,037 $146,544 $272,328
Year to Date Average, This Year $274,754 $170,769 $301,827
Year to Date Average, Last Year $248,037 $146,544 $272,328
Condos Residential
This Month $140,050 $250,000
Last Month $142,000 $255,000
This Month, Last Year $113,000 $218,855
Year to Date Median, This Year $140,050 $250,000
Year to Date Median, Last Year $113,000 $218,855
The above representation may or may not reflect all real estate activity in the market.
© 2013 Garold D Bauer, All Rights Reserved, Information Deemed Reliable But Not GuaranteedMETROPOLITAN DENVER REAL ESTATE STATISTICS
AS OF JANUARY 31, 2013
Snapshot Prior Prior
Jan, ’13 Month Year Ago Month Year Ago
Single Family (Residential + Condo)
Active 7,094 7,706 10,443 -7.94% -32.07%
Pending 1,489 1,464 1,680 1.71% -11.37%
Under Contract 4,431 3,090 3,486 43.40% 27.11%
Sold 2,953 3,400 2,470 -13.15% 19.55%
Avg DOM 78 73 104 6.85% -25.00%
Avg Sold Price $274,754 $289,926 $248,037 -5.23% 10.77%
Active 5,834 6,366 8,356 -8.36% -30.18%
Pending 1,180 1,168 1,341 1.03% -12.01%
Under Contract 3,535 2,442 2,838 44.76% 24.56%
Sold 2,343 2,725 1,993 -14.02% 17.56%
Avg DOM 80 75 103 6.67% -22.33%
Median Sold Price $250,000 $255,000 $218,855 -1.96% 14.23%
Avg Sold Price $301,827 $315,451 $272,328 -4.32% 10.83%
Active 1,260 1,340 2,087 -5.97% -39.63%
Pending 309 296 339 4.39% -8.85%
Under Contract 896 648 648 38.27% 38.27%
Sold 610 675 477 -9.63% 27.88%
Avg DOM 70 67 108 4.48% -35.19%
Median Sold Price $140,050 $142,000 $113,000 -1.37% 23.94%
Avg Sold Price $170,769 $186,877 $146,544 -8.62% 16.53%
Active, Pending, Under Contract, and Sold presented as # of units.
Pending are those listings that are awaiting contract approval from a financial institution.
Avg DOM = Average Days on Market
This representation may or may not reflect all real estate activity in the market.
Source: Metrolist, Inc.
© 2013 Garold D Bauer, All Rights Reserved, Information Deemed Reliable But Not GuaranteedMETROPOLITAN DENVER REAL ESTATE STATISTICS
AS OF JANUARY 31, 2013
% %
Snapshot – YTD Change Change
YTD 2013 YTD 2012 YTD 2011 12 vs ’11 12 vs ’10
Single Family (Residential + Condo)
Active 7,094 10,443 17,890 -32.07% -60.35%
Under Contract 4,431 3,486 3,147 27.11% 40.80%
Sold 2,953 2,470 2,156 19.55% 36.97%
Avg DOM 78 104 121 -25.00% -35.54%
Avg Sold Price $274,754 $248,037 $252,307 10.77% 8.90%
Active 5,834 8,356 13,714 -30.18% -57.46%
Under Contract 3,535 2,838 2,514 24.56% 40.61%
Sold 2,343 1,993 1,724 17.56% 35.90%
Avg DOM 80 103 120 -22.33% -33.33%
Median Sold Price $250,000 $218,855 $225,000 14.23% 11.11%
Avg Sold Price $301,827 $272,328 $277,922 10.83% 8.60%
Active 1,260 2,087 4,176 -39.63% -69.83%
Under Contract 896 648 633 38.27% 41.55%
Sold 610 477 432 27.88% 41.20%
Avg DOM 70 108 123 -35.19% -43.09%
Median Sold Price $140,050 $113,000 $124,995 23.94% 12.04%
Avg Sold Price $170,769 $146,544 $150,085 16.53% 13.78%
Active, Under Contract, and Sold presented as # of units.
Avg DOM = Average Days on Market
This representation may or may not reflect all real estate activity in the market.
Source: Metrolist, Inc.
© 2013 Garold D Bauer, All Rights Reserved, Information Deemed Reliable But Not Guaranteed

January 2013 Market Recap

Denver Home Market
January, 2013
General Market Narrative:
WOW, can we repeat January? The Denver area has not seen a January like the one that we just
finished for years and years and years. Inventory of homes available for sale @ 7,094 homes is the
lowest month end on record for the period of January, 1990 through January, 2013. The weekly sales
rate @ 14.43 is the highest on record for the same time period. January is traditionally slower than
December; but in this case, the number of homes placed under contract is up 43% month over month.
Other metrics such as closings and pricing are up month over same month last year and down month
over month. January is traditionally slower than December. It appears that the Denver home market
continues to show its strength. Many brokerages and Realtors® are reporting setting new records in the
month of January.
By the Numbers:
Single Family (defined as Residential plus Condo):
7,094 active listings at month end, 4,383 new listings came onto the market, 4,431 homes went under
contract, 2,953 homes closed, average days on market is 78, average sales price is $274,754, closed
dollar volume is $811 Million, and month’s supply of inventory is 1.82.
Residential: 5,834 active listings at month end, 3,467 new listings came onto the market, 3,535 homes
went under contract, 2,343 homes closed, average days on market is 80, average sales price is $301,827,
median sales price is $250,000, closed dollar volume is $707 Million, and month’s supply of inventory is
Condo: 1,260 active listings at month end, 916 new listings came onto the market, 896 homes went
under contract, 610 homes closed, average days on market is 70, average sales price is $170,769,
median sales price is $140,050, closed dollar volume is $104 Million, and month’s supply of inventory is

Is now the time to buy?

Whether you are a first-time buyer or you’re looking to move up or downsize, buying a home is still a huge decision that can be rife with uncertainty. But if you’re ready to take the plunge, you should move quickly, before circumstances change and the market takes a turn that is less favorable to buyers.

Why is NOW a good time to buy a home? Here are two reasons you should be considering taking the plunge into homeownership:

Interest rates are still very low. Experts predict they won’t stay this way, though. We’ve already seen them start to trend up. If you can get in now before they bounce back any higher, you can keep your monthly payments low and could even hold down the overall cost of your loan over the long haul.

There is a housing surplus so home prices are also low. With all the foreclosures across the country, plus all the people who would need to move anyway, we’ve got a glut of available housing in most neighborhoods throughout America. This has driven prices down — although, just like with the interest rates, prices could start to rise at any time.

While those are the two biggest factors that should influence your decision, there are other considerations. Owning a home can confer some great tax benefits. The write-off for mortgage insurance means a lot to most households, so consider the available deductions for your mortgage interest and your points.*

If you’ve decided it’s time to move into a bigger or smaller home, those reasons probably won’t change much over time. You’ll still want to make a change in six months, but the market may not be as buyer-centric by then.

Taking the plunge and purchasing a new home can be stressful, confusing and difficult.  For more information contact me.

When can you or should you refinance your home?

Your home’s financing isn’t final. The decisions you made when you bought your home were based on your financial situation at the time. However, your income, the mortgage market and the real estate market can change. This is why you should always assess the applicability of your mortgage to your current situation and future plans to determine if a refinance is in order. There are a variety of reasons why you might want to refinance:

  • Take advantage of a lower interest rate. Rates have been at historic lows, but there is no guarantee how long this will last. If you can get in now before they begin to climb, you can keep your monthly payments low.
  • Opt for a fixed rate over an adjustable-rate mortgage. If your current loan is an ARM that will soon adjust upwards, you might prefer the stability offered by a fixed-rate mortgage.
  • Access needed cash. Cashing out a certain amount at a mortgage’s much lower rate to pay off a debt — say, a credit card — at a much higher rate often makes solid financial sense.
  • Change your loan terms. Opting for a shorter loan term — say, 15 years instead of 30 — will help you pay off your debt sooner and save significant money over the term of the loan. If your income has decreased you may wish to extend the term of the loan.
  • Cancel private mortgage insurance. PMI is required of borrowers who put down less than 20 percent on their home. If you’ve been in the home a while, you may have gained enough equity so that you no longer need the PMI.
  • Consolidate your first and second mortgages. This could mean significant savings for you over the long haul.

Whatever your reasons for wanting to refinance, there are a number of factors you’ll want to consider. For starters, you want to make sure that your current loan does not have a pre-payment penalty for refinancing. 
Another key concern is whether or not the costs of a refinance are recouped by your lower rate. All loans have closing costs associated with them, and you want to make sure that whatever savings your new loan delivers will also be worth the closing costs. Typically, you want to recoup your closing costs within two years. 
As you can see, there is a lot to consider, which is why it makes sense to sit down with a home financing expert and review all the key considerations and do all the necessary calculations to ensure you’re making the smartest financial decision you can.

Taking Tile for Your new Home

There are different options when taking title for a home. Figuring out what one is best for your situation can depend on what you are trying to accomplish as well as how many people are involved. When in doubt you can always seek legal counsel to help understand what is best for your particular situation.

Thinking of Buying or Selling a Condo important information to know

Owner occupancy in a HOA complex can dictate what type of financing can be applied towards a purchase of a condo. Owner occupancy can also affect the ability to obtain mortgage insurance. It is important as a buyer to know this as it could potentially effect your ability to purchase a condo if you are wanting to go FHA or lest than 20% for a loan. As this affects buyers ability to purchase, it affects the demographics for sellers being able to sell their condo.