Archive for the ‘Home Buying’ Category

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For some people, finding a perfect property to buy is challenging. Throw the current economic hardship into the equation, and the process gets even tougher. Fortunately, many people are in the same situation. Here’s a rundown of tips from some of Denver’s leading real estate experts.

1.Choose the wrong mortgage: With the advent of instant refinancing, home loans are no longer the lifetime obligations they used to be. Still, you don’t want to be saddled for even a short period of time with the wrong one. Investigate all your options, then lay your choices side-by-side and do the math, making sure to compare worst-case scenarios. Be sure to look at initial interest rates, future interest rates and payments (if different), and the possibility of prepayment penalties.

2. Confuse “pre-approved” and “pre-qualified” with a loan commitment: These are debatable terms in real estate because not all lenders apply the same definition to each expression. In fact, one leading real estate dictionary contains neither expression because their definitions are uncertain. According to one school of thought, however, when you are “pre-qualified,” the lender is making an educated guess about how much you can borrow based on information you’ve provided. When you are “pre-approved,” the lender has verified everything you have told him or her and is offering to lend you up to a given amount at current interest rates — under certain conditions. Whether pre-qualified or pre-approved, final clearance and a check at closing — a loan commitment — are subject to an appraisal satisfactory to the lender, good title, a last-minute credit check, and other verifications. When meeting with lenders, always ask how they define each term and what additional steps will be required to obtain a loan.

3. Have too much credit: Excessive credit is almost as bad as no credit or even bad credit. Even if you pay your bills on time, lenders tend to focus just as much on how much credit you have available to you as they do on timeliness. So being up to your ears in car loans and credit cards is a sure way to be turned down for a mortgage. Postpone any big ticket purchases until after you buy your house.

4. Lie on your loan application: Exaggerating your income on a mortgage application or putting down other untruths can be a federal offense. Lenders rarely prosecute liars. But if they find out later, they can call your loan due and payable. Don’t ever sign your name to a loan application that is not completely filled out, either. Loan officers have been known to stretch the truth to get a client approved, but it’s the borrower who ends up paying the price, often in the form of monthly loan payments he can’t afford.

5. Hide if you can’t make your payments: The worst thing you can do is ignore phone calls and letters from your lender when you are behind on your payments. Lenders have many options at their disposal to help keep borrowers from losing their homes to foreclosure. But they can’t do anything for you unless they can talk to you about your difficulties. Lenders are the enemy only if you give them no other choice.

6. Skip a home inspection: Failing to make your purchase contingent on a satisfactory home inspection could be a costly mistake. Independent home inspectors examine houses from stem to stern. They’ll be able to tell you whether the roof and/or basement leaks, whether the mechanical systems are in good shape and how long the appliances should last. They can’t report on things they can’t see, but at least their trained eyes are better than yours. So don’t pass just to save $300-$400; that’s money well spent.

7. Hire just any agent to sell your house: All real estate agents are not the same. You want to look for those who specialize in your neighborhood and are top producers. Ask your candidates how they plan to market your house, what you can do to make the place more attractive to prospects and how much you should ask. If you don’t like any of the answers, looks elsewhere. And above all, stay away from relatives. Unless Aunt Bessie or Nephew Nick fit the description above, keep looking.

8. Fail to check out a remodeler: Never, ever hire a contractor who knocks on your door or says his prices are good for only a few days. Reputable remodelers don’t solicit door-to-door, and they don’t cut prices just because they happen to be in your neighborhood. Check out a potential contractor thoroughly by calling several of his past clients, your local better business bureau, his bankers and suppliers, and your local consumer affairs agency.

9. Pay too much upfront: If a contractor asks for more than a third of the contract price as a downpayment, chances are something’s wrong. At worst, he’s a scam artist who has no intention of returning after he cashes your check. At best, he’s undercapitalized and can’t afford to purchase materials on his own. Or, in between, he could be using your money to pay workers on another job. Never give a contractor cash, either.

10. Burn your mortgage: It’s a wonderful feeling when you make your last house payment. After all, the place is now yours, all yours. Many people celebrate by holding a mortgage burning party. But they torch the original document. Don’t. Make a copy and burn that instead. Keep all your loan docs in a safe place.

With that advice in hand, home buyers can rest assured that they will make wise investments at the right time.

Buying a house is everyone’s dream. But not all of them are able to convert that dream into a reality. So whenever you do want to buy your own home, don’t rush into things. There is a long list of dos and don’ts to consider. Be judicious even when you are taking a tiny decision in this regard, because you are obviously in no mood to sell your house in case anything goes wrong. It is a lifelong decision you have to take.

Consider the following points:

Check your current financial situation. You have waited for years for this day to come; if need be, you can wait for another couple of years. Don’t rush into any lucrative deal that a real estate developer offers you.
Do not invest all your savings in your new house or do not take a big loan, which you cannot afford to repay with your current income. You wouldn’t want to live in your new home with the burden of paying a monthly repayment that leaves you with nothing.
Make visits to the locality in which you will be staying, as it is important for your family to live in a clean and healthy environment in all aspects. Ensure that the building and construction is up to scratch.
When you are ready to invest in your new home, take the time to search for an agent who fulfils all your requirements. Agents with big brand names aren’t always the best ones available. Enquire in your circle. Ask everyone, including your friends, family members and work colleagues. Remember, finding an agent is really important. Do not make a deal with someone who only cares about selling a house to you. He should be prepared to provide you appropriate service—after all, buying a house is an important decision.

An important piece of advice: talk to your attorney before closing any deal. Obviously, you do not want to land into legal hassles—real estate is full of such complexities. So prepare yourself, and don’t land yourself in such situations—there are quite a few unscrupulous real estate developers waiting to trap you in their ‘lucrative’ building/construction deals.

September 22, 2007 Portland Community College

For more information go to www.the-buzzz.com or www.EastBayAreaHomeLoan.com

Finding a lender is one of the hardest or possibly confusing part of the entire process of buying a home, no matter what part of the nation you may be in. The various lending establishments include banks, savings and loan companies, credit unions, state government lenders, and private mortgage companies. No matter what type of loan you are seeking, you should shop around and find the best deal and this goes for your home lending company as well. Each type of lending company will offer different mortgage loans, loan fees, and interest rates.

In order to find a lender that will fit your needs you can talk with your own bank, talk with friends and relatives, search through the telephone book, and talk with your realtor. Realtors have a list of lending companies their clients have used in the past and this may be one of the best and easiest ways to find a lender.

If you are wondering what other costs you will be liable for once, you have purchased a new home that you may not have had to pay while renting; you had better be prepared to pay all kinds of other bills. In some cases, when you rent you may not be responsible for all the utilities that will now be your responsibility. You will have to of course, pay your mortgage payment, along with electric, gas, water, sewage, telephone, and cable. You will also have a yard to care for and will need to keep your lawn up or hire a company to mow your yard.

If you choose a home in a community, in some cases, the homeowners association requires a monthly or yearly fee so certain things they maintain such as the upkeep of the pool, community areas, storage facilities, and lawn care. Not all homeowner association fees are the same so you will need to read your bylaws to understand what your fees are being used for and what you will still be responsible for when it comes to your property.

Other things you will need to pay are property taxes and insurance on the home. Some lending companies include these in your mortgage payment. The majority of times you mortgage payment will cover the amount you borrowed to buy the home, the interest which is the money the lending company is charging you on the money they loaned you to buy the home, insurance for the home and property, and taxes that are paid to the city or county.

When you apply for a mortgage loan with a lending company you will need to provide such things as the social security numbers of yourself and your spouse, information for the last 6 months from your savings or checking accounts, information on all other assets including bonds or stocks, paycheck stubs for proof of income, credit card information, outstanding loan information, two years income tax statements, and references for employment.

Buying a foreclosed house can save a lot of money in home buying. Learn how to buy a foreclosed houseusing the real estate tips in this free video. Expert: Richard Blake Bio: Richard Blake is a licensed real estate agent that has closed more than 20 times the number of transactions per year than that of the average realtor for the last three years. Filmmaker: Christopher Rokosz

If you have been thinking about purchasing or selling a home in Fountain Hills, Arizona you will definitely want to read this. The most important factor when thinking about purchasing or selling property in Fountain Hills, Arizona is to obtain a Real Estate Agent that knows the area, knows the contracts, and knows how to cater to your needs. At any time you may click on the website associated to this article to contact a Realtor that will answer all of your questions in person, on the phone, or in an email. After reading this article, you will know what to do and what not to do when purchasing property in Fountain Hills, Arizona.

Fountain Hills is just east of North Scottsdale. The scenery is stunning, the people are friendly, and the weather is absolutely gorgeous. Many people are attracted to Fountain Hills for several reasons. Several times a day an enormous fountain in the middle of a lake shoots water hundreds of feet high that can be seen for miles around. This is perhaps the main feature of Fountain Hills and the biggest tourist attraction. Around this lake each year there are several festivities, art shows, fire works, and much more. This peaceful community is certainly upscale luxury living.

When purchasing a home in Fountain Hills, it is important to find a Realtor that knows the area well, knows how to negotiate contracts aggressively to save you money, and can find what you are looking for. The difference between a terrible Realtor and a wonderful Realtor could seriously cost you thousands of dollars. An experienced Realtor is a must. Keep in mind, at any time while reading this article you can view all homes for sale in Fountain Hills by clicking on the website associated with this article, then clicking on property search. You can search by city, zip code, price, square footage, and much more. You can view any home for sale in Arizona here.

When selling property in Fountain Hill the same principles apply. You must get a Realtor that can price your home correctly, market your home effectively, and answer all of your questions. If you are moving from Fountain Hills to another area of Arizona, you want to make sure that you Realtor coordinates the two transactions so that you are not left living in a hotel between transactions. This process can be very tricky. Let a professional Realtor handle this for you. You may find such a Realtor by clicking on the link associated with this article.

When buying or selling, it is extremely important that you are properly protected. Did you know that when selling, there are free programs available to put your home under warranty through the duration of the listing? For example, if your air conditioning unit breaks during your listing, this warranty plan will cover you so you do not have to claim such a tragedy on your home owners insurance. Many Realtors do not even know about these types of programs nor do they even offer such programs. Realtors are not allowed by law to give tax advise to clients in Arizona, but we can show you articles written by accountants that show you how to maximize your tax write offs. You would be surprised when moving, what you can and can not write off on your taxes. Many Realtors barely know how to do their own taxes let alone show you the right resources to maximize your savings. There is much you can gain from using an experienced Realtor and an enormous amount of money to be saved.

If you have been thinking about buying or selling a home in Arizona, you are in the right spot. We specialize in communities such as DC Ranch, Silver Leaf, Troon, McCormick Ranch, McDowell Mountain Ranch, Fountain Hills, Grayhawk, Legend Trail, Ancala, Desert Mountain, Desert Ridge and the Scottsdale Kierland area. However, we help people buy and sell homes all over the state of Arizona. If you have any questions regarding buying, selling, or leasing property in Arizona please contact us anytime.

Many people are looking for ways to earn an income either as a part-time gig or to replace their jobs and work full-time as an entrepreneur. One of the hottest and most popular ways of doing this is getting into real estate purchase and resell.

Overview of a Real Estate Investment Business

A very basic type of real estate investment is buying a home and then renting it out in hopes of keeping up with mortgage payments and coming out with a nice profit at the end of each month. This often entails making some repairs to the home you want to rent, as well as giving the home some perks that will raise its value from its original cost.

This is a lucrative business, and people make a nice living from their real estate investments. It takes work, a good understanding of the real estate business and determination. Now take a look at the pros and cons here.

Pros of Real Estate Investments

One way people obtain real estate is through foreclosures. Often these homes are auctioned off for less than they are worth, which is the prime scenario. In this case you may have to fix up the home a bit, and then have the option of renting or selling it. This is an easy way to get started in the real estate investment business.

Another way to obtain real estate is through buying a fixer-upper and making needed repairs. This type of investment makes sense, as you get to see the house before you make a bid to buy it, so you know what types of repairs it needs ahead of time. The key here is to make a bid early and try to get the lowest price for the home. This works especially well with sellers who want to make a quick deal.

Cons of Real Estate Investments

A foreclosure sale is almost always a “buy as is” type of sale, and you have no recourse, if you want to back out of the sale. In the case of a foreclosure, you could find yourself having just purchased a home that has way more damage than you expected, leaving you to have to make major repairs before the house can be put on the market. These repairs can add up quickly and soon you find that you have put out more money than you can recover.

The same goes for buying a fixer-upper home on the market. If you do not pay close attention to the condition of the house you are interested in purchasing, you might be paying for costly repairs that you did not count on. The ideal situation is to buy a home that is in need of little or no repairs, so you can concentrate on additions and other cosmetic changes that will raise its value. You don’t want to sink your money in major repairs caused by a careless previous owner.

It all boils down to the fact that a careful buyer must take the time to research homes, including their locations, up for sale before making any purchases. Real estate investment should be profitable to you. You should learn the ins and outs of buying homes that will make you money rather than cause you headaches. Be informed, and you should do well.

Thanks to the abundance of foreclosures and short sales that are on the market, chances are that for the next few years anyone looking to buy a house will be buying it from a bank; not a human.  It is now estimated that less than half of all homes purchased are being sold by private owners and this means more than likely, you will be dealing with a bank to purchase your home.  There are three main strategies for buying a home and you should know what you are getting into with each when making the decision on which property to buy. 

The first buying strategy is the typical transaction.  This is how most of us think the process of buying a home will work.  A property is put up for sale by the owners and placed on the market, usually listed in the MLS.  All viewings and offers on the property are arranged and handled by a real estate agent or agents.  The sellers have the option to accept, decline or counter the offer.

One advantage to conventional home purchases is the speed and simplicity of the transaction as a whole.  Both buyer and seller have room to negotiate on all facets of the deal from price of the house to closing costs and what timelines need to be met.  Another advantage is that the homeowner has likely not gone into default and is still living in the home.  It is likely that the home has been maintained and cared for and may be move-in condition. The down side to traditional or typical home purchases is that may end up paying a higher price. Many sellers would rather pull the house off the market than take a lower price.

Another buying strategy is to purchase a home as short sale. The window for short sales is small, but definitely doable.  A short sale is executed when a homeowner has defaulted on their mortgage payment and the bank is in the process of foreclosing on the property.  Between the time that the homeowner defaults and the home goes to the auction block, a homeowner can try to reach a short sale agreement between themselves, the buyers and the lender. 

One advantage to a short sale is that basic upkeep of the property has likely been maintained like electricity, water and heat.  The big win with short sales is the price.  A short sale is almost always purchased below market value and most banks are eager to sell in a short sale than to go through a costly foreclosure.  The down side is that the price may not go as low as you like since the lender has the upper hand and knows what they need to recoup in the property sale.  Another frustrating factor with short sales is the waiting period.  There are many factors that the seller, bank and buyer must agree to and negotiate. The short sale process can take as long as 120 days before finalizing the purchase. During that waiting period problems can occur to the property that the buyer may not be expecting when they close on the deal.

Another way houses are sold is as REO or real estate owned properties.  Bank owned or REO properties are those properties that have been foreclosed on due to delinquent mortgage payments but do not sell during the foreclosure auction.  Ownership of these properties goes back to the lender and they usually market the property through REO agents.  It is best to work with REO agents to purchase bank owned properties as they have the experience and connections to make an REO offer to the lender. 

A huge advantage to REO purchases over short sales is that most REO properties have had liens cleared and major repairs completed.  Another advantage is that the homes are generally cleared of major debris.  In addition, REO properties allow for home inspections.  This is true of some short sale transactions too, but purchasing at foreclosure auctions leaves home inspections out.  REO offers need to be neat and clean and it isn’t always the highest offer that is accepted.  In many cases, it is the cleanest offer that gets accepted because the lender will not have to invest a lot of time in the transaction.  The down side to REO purchases and this is only a matter of opinion is the inability to negotiate.  Most lenders will request your best and final offer to make their determination. 

These are the three most advantageous strategies for buying a home in today’s bank-owned real estate market.  Knowing your options are with each will make decision on which property to buy that much easier. 

Purchasing a home can be a very big decision. There are many things that you need to consider when purchasing a home. Nothing about this process is easy. First you have to decide where you want to be located, and what you want your house to have. A few questions you need to think about are: do we want a garage, how many bedrooms and bathrooms do you want, do you want a basement, and how big of a yard do we want? You will also need to decide which of these items you are willing to compromise on.

If you are serious about purchasing a new house you may also want to start shopping around for a bank where you can get a mortgage that you like. Once you find your house you want to purchase you will not want to waste any time getting moved in.

Many banks offer you the option of pre qualification. With this you will know how much you can spend on a house based on how much your loan can be. Banks take into consideration your income and your debt to determine how much they think you can afford for a house payment. This may be something you want to know before you start getting too excited about a house. You may have a limit to how much you can spend, and this could save you time when looking at houses.

The bank will also run a credit check to see how your credit is. Your credit score is based on how good you are at paying your bills on time. It also allows the bank to see who else you are in debt to and how much you are in debt. This may also affect your loan amount. If you have good credit the bank may be more willing to work with you on a loan amount.

You will also want to check around to see which bank can get you a better interest rate. Some banks can offer better interest rates than others. Your interest rate may also depend on your credit score. You want to find the bank that will give you the lowest interest rate, as this will also affect your payment. Your interest affects how much you actually end up paying for your house by the time it is paid off. You will also need to decide if you want a fixed interest rate or not. Some banks offer you a lower interest rate to begin with, and then increase the rate later on. You will want to check if this type of interest rate has a limit to how high it can go.

Not all banks can offer you the same types of loans. If you would like a first time homebuyer’s loan you will need to talk to the banks that offer this type of loan. They are loans that are backed by government. Loans that are not backed are called conventional loans.

You can also get loans that require no or low down payments. Closing costs are another expense you need to consider. Some banks charge more than others and some offer no closing costs.

You have many things to consider when choosing a bank for your loan. Make sure you do not limit yourself, shop around before you make your decision. Find a bank that is willing to work with you. You need to keep in mind what kind of loan you want, what kind of interest rate and payment works for you, and how much you have for down payment and closing costs.

The rise of interest rate in May could mean that £16 a month will be added to the bill of a family with a typical £100,000 home loan. When added to the cost the previous three interest rate hikes in August, November 2006 and January 2007, it means mortgage repayments for the average homeowner will have gone up by £63.79. Lenders are expected to announce details of their new mortgage and savings rates over the coming days.

It comes at a time when debt charities are reporting a surge in the number of people seeking advice over debt problems and mortgage arrears. Figures show that the number of households who saw their home repossessed soared last year to 17,000, up 65% on 2005. And amid rising interest rates and affordability concerns, many debt experts believe the number of people falling behind on repayments is set to increase further; a lot of people on low incomes who had taken out expensive mortgages could find their budgets stretched to the absolute limit.

Lenders are being urged to look sympathetically at borrowers who may start to struggle with payments, as fears grow that the latest rate rise could push more and more hard-working families to the brink of repossession and homelessness. Not only could the rate rise add financial burden of thousands of households, it could also make it harder for people to escape money problems through freeing up equity in their property. Analysis’ point out that anyone who has an interest-only mortgage will see payment rise by 22% from the first rate rise in August 2006, with many feel that the housing market is slowly which will make it harder for borrowers in difficulty being able to sell their properties to get out of financial trouble.

New buyers are being advised to check extremely carefully to make sure that they can still afford to get a mortgage.

In today’s economy, it’s difficult to get mortgages let alone getting 100% financing loans. Rural Development Mortgages are available for people who qualify under certain criteria. N

ot a lot of real estate agents or mortgage brokers are aware of this type of mortgage. There are several different types of rural housing loans that you need to know about when searching out your mortgage options.

These rural development mortgages are available to individuals and families that fall into certain income brackets. There are options for moderate and low income families that may not typically qualify for a mortgage at a bank or other financial institutions. Most rural programs will allow first time home buyers, or home buyers who have not owned a home in three years, to gain access to affordable single family homes at a below market fixed mortgage rate, minimum down payment and closing costs.

Rural Development guarantees these loans, eliminating the Private Mortgage Insurance requirement, allowing lower income home buyers access to a wider price range of homes. USDA Rural Development has achieved a new milestone toward full-scale deployment of its Guaranteed Underwriting System (GUS), used by lenders to underwrite USDA Section 502, Single Family Housing Guaranteed loans.

This system was developed by the USDA to automate the manual loan underwriting process. One unique feature of the rural development system is that it uses the borrower’s income and a property’s eligibility for the Single Family Housing Guaranteed Loan program. It also uses a scorecard feature to assess any risk of the loan process.

Rural Development Mortgages deliver programs in a way that will support increasing economic opportunities and improve the quality of life for rural residents. Rural Development has invested more than $72 billion since the beginning of the Bush Administration to provide equity and technical assistance to finance and foster growth in home ownership, business development and critical community and technology infrastructure. This has resulted in more than 1.2 million jobs being saved or created.

In a December, 2008 ruling, a single set of regulations was set to standardize the rural development mortgage process. The ruling is intended to make it easier for eligible individuals or businesses to apply for loan guarantees. This is encouraging as potential applicants review their options as it will benefit lending companies as well as borrowers.

How long can you wait before buying a home after foreclosure? Your home buying questions answered.

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