Archive for the ‘Home Buying’ Category

In this segment from Mark “First-Time” Boyer’s interview with Carol Dorsey of Prudential SourceOne Realty, Carol talks about the home-buying process, touching on home tours, inspections, offers, counter-offers, and attorney reviews.

This mini video series brought to you by www.bestmortgagerates4u.ca shows the process of buying a home. Thinking of Buying a Home? Step 7 : What professionals are needed in the home buying process? Stay tuned for the other steps. This step by step advice was compiled by a seasoned mortgage…

Escrow is a term that will undoubtedly be discussed during the process of purchasing a house. Putting a down payment on a home initiates the buying process. As there are several steps necessary to complete the process, it is important to protect this down payment. Hence the reason for escrow, which is a bank account created and maintained by an impartial third party, which is not connected to the buyer or seller in any way. An escrow agent can be recommended by a broker, but the decision as to who is hired should be a mutual choice made by both the buyer and the seller.

You are not required to use an escrow agent in real estate, but you will have a hard time finding a bank or lending institution that does not require escrow. This is due to the size of funds which is changing hands in the transaction. Escrow acts as a protection against either party not honoring the terms of the transaction.

When escrow proceedings begin, make sure to have your photo identification available, as well as the contact information of your home insurance providers. Closing usually occurs within one to two months, and the creation of the account provides guarantee that the money placed in escrow will not actually be disbursed until all terms have been met.

Purchasing a home can be a hectic and nerve-wracking time. You will need to obtain homeowner’s insurance and have your new home inspected and assessed for financing. It is important that you keep in touch with your escrow agent. Do not hesitate to call him or her with any questions, that is their job. An escrow agent can explain all escrow-related matters so that you will be able to execute any deadlines. If there are obligations the seller has agreed to, you must inform the agent if you are not satisfied. Make sure to inspect each document for correctness, and inform your agent any changes that need be made for accuracy. Just like closing fees, escrow costs can vary depending upon where the contract is being executed and the company handling it.

Escrow is not limited to real estate. Almost any type of valuable property may use escrow to ensure the transaction goes according to plan. Business sales can also use escrow accounts, as do expensive websites and occasionally the source code of popular software. Beware of escrow fraud, however. A number of online escrow agents are fraudulent, so make sure you are dealing with a real company. Find out the company’s address and telephone number to make sure it is located in the United States. Call to talk to an actual agent, and question him about his experience. You may also want to check with the Better Business Bureau to make sure the escrow agent is a member.

Once the transaction has gone through, you will receive a closing statement. This statement will show the funds you paid into the account, the escrow agent’s fee, the price of the property, and any other claims on the property, such as liens. In some cases, you may also receive a refund check. Once you have received the closing statement, do not lose it. You will need to provide it to your accountant, to ensure accuracy on your tax returns. Also, the Internal Revenue Service may want to see your closing statement to prove that you paid the funds you state for the property.

If you are looking to buy in the San Diego area, consider affordable South Bay homes for sale or even Solana Beach real estate. For more information about San Diego communities, visit our blog: California Community Guide,

Many people for a variety of reasons have a second property that is empty and potentially losing money.

Whether you’re moving in with your partner, have an unused second home or former buy to let property, surplus properties continue to cost you money but often prove difficult to sell.

This is where a house buying company can help you. They specialise in helping people who need to act quickly. Using our service, you quickly and easily sell your vacant property, quickly releasing the equity and saving you additional on-going costs.

How can a house buyer help?

The house buyer will purchase your house for cash, quickly – often within 7 days.

Its often a good idea to use one of the larger national professional buyers of property, so wherever you are currently located in the UK, the would be able to help.

How does it work?

It’s simple.

The house buyer will arrange for 3 agents to value your property.
They will then be able to make an offer to you based on these valuations.
On accepting our offer, they will agree a suitable date for exchange of contracts and completion.

There is usually no cost or obligation in receiving an offer.

What are the benefits of using Quick Move Now?

You release the equity in your house, quickly
You guarantee the cash sale of your home
We can complete quickly and to suit your timescales.
You can pay off your mortgage and stop your vacant house being a financial drain.

The Golden State of California is the most populated state in America. At the same time, one of my other favorite places to reside at is Arlington Heights in Illinois. Though these two places are located far apart, there are similarities between them.

Many of the homes in the state of California and in the city of Arlington Heights are the most coveted, though not necessarily the most expensive. Unless you are extremely wealthy, you will undoubtedly require a mortgage in order to buy a home. Shopping around for a mortgage can be confusing, with a host of terms that are unfamiliar to you. Here is a 3 step guide to buying a home in California, Illinois or anywhere else, along with some terms that will help you along the way.

1) In a surging home market, it is a challenge to decide on the kind of house and size that you can afford. The first thing you need to do is find out how much of a mortgage you can afford. This will be a determining factor when you get approved. There are many mortgage calculators on the Internet that you can use to find out how much you can handle.

2) Your next aim should be to find the best mortgage that meets your specific needs. Right now, loans and mortgage companies will compete for your business, so shop around for what suits your needs and lifestyle.

3) Once you have done that, you need to rate shop for mortgages. California and Illinois offer a wide variety of mortgage directories on the Internet where you can find the lowest possible rates published from hundreds of mortgage brokers and companies that are updated every day. After you have found the rate that meets your home loan needs, get in touch with the company.

Useful Terms

Fixed Rate: This means your interest rate will not change for the length of the loan. Given today’s economic volatility, this may be a good way to go for you. Fixed rates protect you from rate increases, but if interest rates fall you will be stuck.

Term: This is the length or life of your loan. Thirty years is the industry standard, but many 15 and 20 year terms are available. The shorter the term, the more your monthly payments will be.

Rate Reduction: This will happen if you go for a shorter-term loan. A small rate and a short term will ensure you pay less for your loan than if you borrowed just as much over a longer period.

ARM: An adjustable rate mortgage. Your interest rate will flux with the economy and will be lower than a fixed rate. It may also help you qualify for larger loans or have lower payments. You will generally see a rate cap in your terminology here as well. This means your interest rate cannot exceed a certain amount, and you are safe from extreme market changes.

With the flux of the market place, buying a home is not an easy task, and you should take every aspect into consideration. Knowing these terms in advance will help you a great deal.

This is a short video on how to find and buy the best home deals in any market. Find out how “everybody else” gets the great home! BEAT OTHER BUYERS TO THE HOT NEW LISTINGS! “Receive FREE Lists of Homes with Pictures-by daily email” Receive Priority Access To ALL New Listings That Match Your Home Buying Criteria Visit: www.NashvilleHomeHQ.com/FindAHome!

Vow2Save is a unique wedding registry where engaged couples can register for a down payment and receive cash donations to buy a home.

You may be finding it hard to sell your old home. This could be due to different reasons including slackened property market. Therefore you can’t have funds in hands, by selling old home, to buy a new dream home that you located a few days back. Now you fear that lack of funds may result in you loosing the new property. It is in urgency like this that usually bridging loans are opted for. One can say that these loans are designed to instantly provide you financial support for buying new property. In other words you are able to raise finance to bridge gap between buying new home and sale of old home.

Before you apply for a bridging loan, you must note that the lender will first see if you have already made sale exchanges on old property or you are yet to find a suitable buyer. A bridging loan will be decided accordingly. You would be thus going for either closed or open bridge.

If your existing property is already exchanged on sale then it is a closed bridge and is considered as safe for the loan lender as chances of sales falling through are less. But if you are yet to find a buyer then it is an open bridge which is a little risky for the lender as sales may not materialize at all in a given period of the loan.

Bridging Loans are associated with higher rate of interest. The rate is usually kept higher than base rate of central bank. High interest rate is because of risks involved in the loan and also because of short duration. These loans have usually of 12 months duration for repaying. But a closed ended bridging loan, being less risky, will attract lower interest rate as compared to the open ended loan.

So, it is very important for bridging loan lender to first see that your existing property is being actively marketed for sale. The lender would also like to have a good look at your source of income to see whether or not you can meet the interest payments on the loan.

The loan amount is determined on the value of a property that you have to pledge as collateral. The lender would approve an amount that is a certain percentage of value of property, 60-70 percent for instance.

High street lenders and banks charge very high rate of interest on bridging loans. So you should opt for competitive rate offers from online lenders. Compare these lenders for a suitable deal.

By Mike Manosky

Getting a good deal on a home is often more about timing than purchase price. Because most homes are financed through at least a 15-year mortgage (usually 20- or 30-year), the amount paid in interest has an enormous impact on what the home will ultimately cost. The contract price may be $150,000. By the time interest is calculated over 30 years, however, you could easily pay twice or even three times that amount, depending on what the interest rate is on the day you lock into a mortgage rate.

Lower interest rates make it possible to finance the same amount of money for a lower payment, or finance more money without increasing the payment. How so? Let’s look at financing $150,000 for 30 years at 6.50%.

Your approximate principal and interest payment would be about $948 monthly. Another option would be to finance $158,000 with a monthly payment of roughly $947. This option would allow you to borrow an additional $8,000 without hardly changing the payment. If the interest rate dropped to 6.00%, however, the payment would decrease to approximately $899 per month. Whether you’re looking to buy your first home, or thinking about upgrading to a bigger one, lower rates open the opportunity to find a great buy. The other vital element is location. The award-winning city of Huntsville, Alabama has much to offer.

The Value of Huntsville

No one wants to buy a home that won’t resell well. So, where do you look to ensure you get value? In a June 30, 2007 survey, the Office of Federal Housing Enterprise Oversight (OFHEO) reports, “Of 287 metro areas, 131 recorded decreases in house prices during the quarter.” The Huntsville real estate market, however, was ranked 36 out of 287 in price appreciation, and came in above average with a second quarter increase of 1.76%. Plainly stated, while houses in many areas are losing value, Huntsville, Alabama is still an affordable and wise housing choice.

What Does Huntsville Have To Offer?

Huntsville is widely recognized as being one of the country’s best places to work, live and go to school. The September 2007 issue of U.S. News & World Report says, “The University of Alabama in Huntsville ranks among the top ten percent of business schools in the county.” Check with MSN/Sperling’s Best Places and you will find that Huntsville is named one of the country’s top ten cities for job growth and affordability. So, what makes this southern town such a remarkable place to live? Huntsville offers a thriving job market, lower than average cost of living, plenty of options for entertainment and a climate that enjoys the best of all four seasons.

If you’re considering buying a home, now may be a good time to do so if you’re looking in the Huntsville real estate market. And with all it has to offer, Huntsville could easily be just what you’ve been waiting for.

Check out this Free home Negotiation Guide. It will help you save money and get a lower sales price. Keep your Realtor and Seller honest with this free guide.

Buying a first home or unit as an investment could be a better financial proposition than buying a house to live in, particularly if you and/or your partner pay income tax at a relatively high marginal rate.

As an investor, you will be able to take full advantage of the negative gearing provisions of the tax law. Negative gearing involves claiming a tax deduction against taxable income for the interest and other expenses which exceed the income from a rental real estate investment.

As an investor, you will have to rent a house or unit to live in while buying an investment home. But the combined exercise of buying an investment house or unit while you rent, or live free of rent at home, can be a more attractive financial proposition than buying an owner/occupied home.

Much depends on the rent you have to pay because – as with any owner/occupied house mortgage – it comes from after-tax income. A good rule of thumb is to consider negatively gearing an investment house only when the cost of servicing the home mortgage and associated home ownership costs (insurance, rates, repairs etc) exceeds the rent you are paying by a substantial margin.

Consider an example of a young couple both earning $25,000 a year currently renting for $200 a week. The couple has a $30,000 deposit to put on a unit costing $130,000 (including fees and charges).

Buying the unit involves borrowing $100,000 to fund the purchase. Taking the worst-case scenario, the couple will have to pay 14 per cent interest on an investment loan. As owner/occupiers, they could obtain an owner-occupied loan at an interest rate of 12.5 per cent.

Owner/occupation would involve costs of about $300 a week made up of about $250 a week interest costs on the loan at the 12.5 per cent rate and another $50 a week expenses of owner/occupation.

Continuing to rent while buying an investment unit means paying $200 a week in rent plus the negative gearing loss. Assuming that the unit bought can also be rented out at $200 a week, the negatively geared unit would involve total costs of about $330 a week (allowing for the higher 14 per cent interest rate on the investment loan) and provide a weekly income of $200 a week.

The loss on the investment for tax purposes would be $130 a week. The couple pays tax at a marginal rate of 39.25 per cent (for all income above $20,000) so the tax loss would generate a tax refund of 39.25 per cent.

The after-tax cost of buying an investment while still renting would be $79 a week (a $130 loss minus a $51 tax saving). This is $21 a week lower than the $100 a week additional costs involved with owner-occupation.

The financial advantage of negative gearing increases with the taxpayer’s marginal tax rate. For example, taxpayers with a taxable income above $36,000 a year receive a tax deduction at a 47.25 per cent rate compared with the 39.25 per cent rate used in this example.

Somewhat paradoxically, negatively gearing a house or unit involves less financial risk than buying one to occupy. This is because of the tax deduction available for any recurrent losses from the investment.

Buying a home in Illinois can be confusing at best, and maddeningly exasperating at worst for the inexperienced home buyer. There are so many neighborhoods catering to completely different lifestyles, from metropolitan big city Chicago, to small rural farm towns and everything in between. It can be difficult to know what you want out of an Illinois home, let alone where you want it.

Finding the right Illinois Realtor can make the experience go much smoother for you than if you were venturing the wilds of Illinois real estate alone. Here are a few tips to making your Illinois home purchase blessedly simple and as stress free as possible.

First, understand that there is more than one kind of Illinois Realtor. Selling Agents work for the best interest of their clients, the person selling property. They typically only share information about a particular property with potential buyers that the seller wants them to share. Any information that may be disadvantageous to the seller remains confidential. However, having a buyer’s agent as your Illinois Realtor means your Realtor is working for your best interest, and will disclose any and all information on Illinois real estate.

Get to know the local communities and the lifestyle they offer. You should have already determined how much you can afford to pay for your new Illinois home. Your Illinois Realtor can help you narrow your search to neighborhoods that meet your financial framework, and offer the lifestyle you want. Find out about local places of interest; parks, schools if you have children, shopping, theater, churches, recent criminal activity and anything else that may be of importance to you while making your decision on where to buy a home.

Be flexible. Of course there are some things that are important to you and you shouldn’t compromise. If you’ve always wanted to plant and tend a flower garden, don’t allow yourself to be talked into buying a home without a yard. However, if you have too many specifications on your list for your Illinois Realtor to look for in a home, you may be disappointed. Be willing to consider many different options as far as architectural style or age of the home are concerned. Remember, improving and updating your home is a fast way to increase its value, and may be worth the investment.

Be prepared to do some researching into the history of any Illinois real estate you are interested in. It’s a good idea to have your Illinois Realtor help you order a home inspection. Find out when the house was built, how long it has been on the market and why, what the damage and repair history of the house includes, and any changes and improvements have been made since the house was originally built. Ordering a thorough home inspection can prevent you from buying a home that requires costly repairs after you move in, or at least keep you from ignorantly taking on such a home.

When it comes to making the huge decisions involved in buying real estate, a good Illinois Realtor is your best friend. He or she can help you not only find your perfect dream home, but save you thousands doing it.

The newest tax credit applies to more home buyers than ever before! First-time buyers are still eligible. Move-up buyers are also eligible. Income limits have been raised! This tax credit only applies to properties that are in contract by April 30, 2010, so if youre thinking about buying a home, its important to act quickly1. Please visit www.ZipRealty.com/taxcredit2010 for more details. 1 This communication is neither tax nor legal advice, and is solely intended as a brief summary of some provisions the Unemployment Compensation Extension Act of 2009. Because this new legislation contains various restrictions and limitations, you should consult with your attorney, tax, and/ or accounting advisor(s) for specific advice and counsel on how the new law may apply to you. ZipRealty, of course, is here to help with all of your real estate service needs. Details and important limitations on ZipRealtys rebate are available at www.ziprealty.com.

This is the 4th stage of the home buying process.

Bad credit mortgage loans are available to individuals with bankruptcies, foreclosures, repo’s, low credit ratings, etc. Unfortunately, having a negative credit rating means a higher mortgage rate and a limited choice of lenders. Still, there are numerous home loans to choose between. Thus, homebuyers with bad credit can easily qualify for a mortgage.

Who are Mortgage Brokers?

If buying a home with bad credit, a mortgage broker is your best friend. Without using a broker, selecting the right mortgage loan is time consuming. This would entail contacting several private lenders, and inquiring about their mortgage loan requirements. Because a large number of traditional lenders favor home buyers with down payments and high credit scores, persons with bad credit will not be eligible for most bank or credit union loan.

A better use of time would involve contacting a broker once the decision has been made to buy a home. Mortgage brokers have associations with several types of lenders, including an extensive selection of sub prime or bad credit mortgage lenders. Consequently, brokers are capable of quickly matching homebuyers with suitable loan programs.

How to Apply for Mortgage Loans

Homebuyers have the choice of using a local mortgage broker or an online broker. Both will have access to a large database of mortgage loans. However, applying online is much easier and convenient.

Online broker sites offer no-obligation mortgage quotes. Based on the information included, such as credit rating, income, desired loan amount, and debts, the broker will sort through various mortgage lenders, and remit a quote. On average, homebuyers will receive at least three quotes from different lenders.

Increase Chances of Getting a Better Rate

Homebuyers with a low credit rating should not expect the best mortgage rate. Of course, there are ways to improve your odds of obtaining a low rate mortgage. At least twelve months before applying for a mortgage loan, make an effort to boost your credit rating.

Most of the time, this can be accomplished by simply paying bills on time and reducing debts. Other approaches to raising credit score involves keeping credit accounts opened, limiting the number of credit inquires, and paying off high interest credit cards.