Congratulations on making that decision to become a homeowner; the first step is considering what is most important to you in a home. The process in front of you may seem like a daunting task but once you narrow down exactly what you want in a home this process will be easier.
How Much Home Can I Buy?
Meet with a mortgage lender to find out how much you can afford to buy. By getting pre-qualified through a mortgage lender you will be able to search for homes you can afford. The lender will provide you with a checklist of items to bring for pre-qualification, but typically you have to gather information about your finances: W2 forms, tax forms, recent pay stubs and bank statements. The lender will also secure a copy of your credit report after you sign a standard permission form.
Where Do I Want to Live?
Finding the right neighborhood is just as important as finding the right style home for you. Your options will be vast but a realtor can help you preview different communities that best suit you.
What area do you want to live in?
What kinds of home interest you? A townhome, a single family, or perhaps a condo.
Do you desire a family oriented community or one with a more lively night life?
How Can I Find My Dream Home?
The wisest choice is to select a realtor to help you gain access to all the homes for sale that fits your needs and assist in negotiating a fair price. Additionally, a realtor is aware of incentives and programs that are offered, not to mention market activity and comparable area home values. Once you find your dream home your agent will work with you in putting together an offer to present to the seller.
Do I Qualify for any Home Buying Incentives?
You may be able to put more money toward your down payment or reduce your closing costs fees by getting money through a number of home buying incentive programs. Although some programs are only for first time home buyers there are others that have more flexible qualifications.
Closing the Deal
Once you have a signed sales contract it’s time to sit back and let the loan officer and underwriters take over. They will order an appraisal on the property, approve your loan and send you a commitment letter with terms and conditions of your loan. You should expect between 45 and 60 days between the time you sign your sales contract to the time you close on your home. After attending the closing/settlement meeting to sign all of the paperwork you'll get the keys to your dream home, Congratulations!
Thursday, September 23, 2010
Friday, September 17, 2010
What's Ahead For The Home Market?
For a while it seemed as if the long awaited housing recovery was here. Home prices stopped falling and stayed pretty close to stable. But the pickup was short lived. Economists are predicting home prices to fall again and bottom out by early 2011.
We can place much of the blame on distressed properties; more than 3 million homes are expected to get foreclosure notices this year, as job losses are still straining the market. In addition, one in every four homeowners with a mortgage now owes more on the loan than the house is worth. And a growing number of these owners have made a strategic decision to default. Meanwhile, short sales have spiked to an all time high. There is now a streamlined approval process and a new government program that gives servicers financial incentives to arrange a short sale instead of foreclosing on a troubled property.
Tips on focusing towards bank-owned properties
Sure, there are some real gems in the mix but you've got to be prepared to listen to your realtor's recommendations and be ready to throw muscle int the clean up. These properties sometimes need serious repairs and you don't always have a fair chance to check the property out before bidding starts. You don't have to take on the risk of a distressed property to reap the benefits of bargains. If you're shopping in an area with a growing number of foreclosures, use that fact to get price concessions from anxious owners. Your realtor can insist the homeowner fix anything wrong with the house or provide a discount to you so you can fix it later.
Hoping to sell your home? Don't try to compete with foreclosed properties in your area. Instead, play up your advantages; a home that's in move-in condition and the possibility of a quick deal. And to speed up the deal even more you can reassure buyers with a warranty package that will cost you somewhere around $300-$400.
Which homebuyers are getting the best deals?
Trade-up buyers who want a bigger home are finding the best deals. That same house on the hill that sold for $500,000 can now be purchased for a mere $350,000; even the Mc Mansions that were selling for $750,000 can now be attained for $550,000.
Looking Ahead at Mortgage Rates
The best mortgage rates are now because the consensus is that by year end/early 2011 rates will climb up to 6%...maybe. While many people are in a hold pattern and not sure whether to lock into low rates or wait, consider this - mortgage rates are going to eventually climb and if today's rates are just one point below, you are looking at a decrease of about $300 in mortgage payments. Do you really want to pay more than you have to?
We can place much of the blame on distressed properties; more than 3 million homes are expected to get foreclosure notices this year, as job losses are still straining the market. In addition, one in every four homeowners with a mortgage now owes more on the loan than the house is worth. And a growing number of these owners have made a strategic decision to default. Meanwhile, short sales have spiked to an all time high. There is now a streamlined approval process and a new government program that gives servicers financial incentives to arrange a short sale instead of foreclosing on a troubled property.
Tips on focusing towards bank-owned properties
Sure, there are some real gems in the mix but you've got to be prepared to listen to your realtor's recommendations and be ready to throw muscle int the clean up. These properties sometimes need serious repairs and you don't always have a fair chance to check the property out before bidding starts. You don't have to take on the risk of a distressed property to reap the benefits of bargains. If you're shopping in an area with a growing number of foreclosures, use that fact to get price concessions from anxious owners. Your realtor can insist the homeowner fix anything wrong with the house or provide a discount to you so you can fix it later.
Hoping to sell your home? Don't try to compete with foreclosed properties in your area. Instead, play up your advantages; a home that's in move-in condition and the possibility of a quick deal. And to speed up the deal even more you can reassure buyers with a warranty package that will cost you somewhere around $300-$400.
Which homebuyers are getting the best deals?
Trade-up buyers who want a bigger home are finding the best deals. That same house on the hill that sold for $500,000 can now be purchased for a mere $350,000; even the Mc Mansions that were selling for $750,000 can now be attained for $550,000.
Looking Ahead at Mortgage Rates
The best mortgage rates are now because the consensus is that by year end/early 2011 rates will climb up to 6%...maybe. While many people are in a hold pattern and not sure whether to lock into low rates or wait, consider this - mortgage rates are going to eventually climb and if today's rates are just one point below, you are looking at a decrease of about $300 in mortgage payments. Do you really want to pay more than you have to?
Thursday, September 16, 2010
Budget Shopping for a Home
Wondering if you’ll ever reach your long-term goal of home ownership? That seems to be a primary concern today for prospective homebuyers. But even in a recession, the dream of homeownership doesn’t have to be unfeasible. While the reality of owning your own home may seem elusive there are steps you can take to realize this goal.
#1 – Review Your Credit ReportThis is the entry point for all prospective homeowners but many people still step over this important item. If you are not credit worthy then you must start proving yourself unless you can bankroll a hefty deposit to place on a home. Nowadays, credit restrictions are becoming more stringent because of the losses lenders suffered in recent years. Many people fear what their creditors have reported but you may be surprised at how easy it is to clean up your credit report. Either way, homeownership and FICO scores go hand-in-hand, so start reviewing that report sooner than later.
#2 – Not enough money for a down payment?Most people are aware of the acronym FHA but do you know they enable you to get a lower mortgage rate with flexible credit terms? The program is easier than banking guidelines and has less paperwork.
#3 – Consider Purchasing in Rural LocalesDid you know there’s a government program through the U.S. Department of Agriculture that helps you buy land in rural areas? This move may seem disheartening when you’ve had your eye on a urban home but a change in scenery can be beneficial for you in the long run.
#4 – Look into Short Sales and save a bundleWith an abundance of homeowners unable to keep up with their monthly payments it’s almost inevitable not to get an amazing deal.
#5 – Save by Buying a Fixer-Upper(HUD) has a 203(k) program that enables buyers to purchase a fixer-upper or handyman-home and roll the expense of repairs into the loan.As you can see, there are a number of ways to afford homeownership and several are provided by the government making it easier to get approved
#1 – Review Your Credit ReportThis is the entry point for all prospective homeowners but many people still step over this important item. If you are not credit worthy then you must start proving yourself unless you can bankroll a hefty deposit to place on a home. Nowadays, credit restrictions are becoming more stringent because of the losses lenders suffered in recent years. Many people fear what their creditors have reported but you may be surprised at how easy it is to clean up your credit report. Either way, homeownership and FICO scores go hand-in-hand, so start reviewing that report sooner than later.
#2 – Not enough money for a down payment?Most people are aware of the acronym FHA but do you know they enable you to get a lower mortgage rate with flexible credit terms? The program is easier than banking guidelines and has less paperwork.
#3 – Consider Purchasing in Rural LocalesDid you know there’s a government program through the U.S. Department of Agriculture that helps you buy land in rural areas? This move may seem disheartening when you’ve had your eye on a urban home but a change in scenery can be beneficial for you in the long run.
#4 – Look into Short Sales and save a bundleWith an abundance of homeowners unable to keep up with their monthly payments it’s almost inevitable not to get an amazing deal.
#5 – Save by Buying a Fixer-Upper(HUD) has a 203(k) program that enables buyers to purchase a fixer-upper or handyman-home and roll the expense of repairs into the loan.As you can see, there are a number of ways to afford homeownership and several are provided by the government making it easier to get approved
Tuesday, September 14, 2010
Need-to-Know Items For Your Home Repairs And Rehabs
Whether it’s fixing up a kitchen, adding a half bathroom or performing a full-gut rehab there are many things to consider before taking on a renovation project; and no matter how many times you “think you’ve got it covered” nine times out of ten, you’ve got a hole in your plan.
Any contractor you hire must have insurance; must have references; and you need to see proof! You see, trust can be a dangerous thing in home rehab and repair jobs while knowledge is strength. Don't get me wrong...there are some wonderful handymen and contractors out there who basically get a bad name just because the last guy did a terrible job. But should you pay for this problem? No – always get the proof.
· Request references and check them out. Just receiving a list of names and numbers isn’t good enough· Ask your contractor’s to review a copy of his current liability insurance certificate
· Get a contract in writing, with specifics that you’re agreeing to
· You should never be required to pay more than one-third of the contract price as a down payment
· If a building permit is needed, ask to see the permit before the work begins
· Do not make payments unless work is proceeding by contract guidelines
· You should never rush into any renovation or remodeling job. By doing so you are relinquishing control to the contractor. You probably will not have problems with an honest contractor, as he should help you work within your budget.
· Rushing into your project only benefits the corrupt contractor who would probably try to sell you the rehab job with products that make him the most money... and not necessarily in your best interests
Rehab and repair doesn’t have to become an agonizing experience; the key to making sure your project runs smoothly is to do your homework ahead of time.
Any contractor you hire must have insurance; must have references; and you need to see proof! You see, trust can be a dangerous thing in home rehab and repair jobs while knowledge is strength. Don't get me wrong...there are some wonderful handymen and contractors out there who basically get a bad name just because the last guy did a terrible job. But should you pay for this problem? No – always get the proof.
· Request references and check them out. Just receiving a list of names and numbers isn’t good enough· Ask your contractor’s to review a copy of his current liability insurance certificate
· Get a contract in writing, with specifics that you’re agreeing to
· You should never be required to pay more than one-third of the contract price as a down payment
· If a building permit is needed, ask to see the permit before the work begins
· Do not make payments unless work is proceeding by contract guidelines
· You should never rush into any renovation or remodeling job. By doing so you are relinquishing control to the contractor. You probably will not have problems with an honest contractor, as he should help you work within your budget.
· Rushing into your project only benefits the corrupt contractor who would probably try to sell you the rehab job with products that make him the most money... and not necessarily in your best interests
Rehab and repair doesn’t have to become an agonizing experience; the key to making sure your project runs smoothly is to do your homework ahead of time.
Friday, September 10, 2010
JUMBO Loans Making A Comeback
A year ago, even the most creditworthy borrowers struggled to secure home loans of more than $729,750 - the cutoff for conventional conforming loans backed by Fannie Mae and Freddie Mac. But since this spring, the interest-rate spread between conforming and jumbo loans has narrowed and the number of lenders offering the loans has jumped. As of late July, lenders were offering jumbo loans at a typical rate of about 5.5 %, down from almost 7 % a year earlier and not too different from what's available for conforming loans, according to data available on Bankrate.com. NAR Chief Economist Lawrence Yun said in a late-July press conference that sales of existing homes priced at $750,000 and above jumped 30% from mid-2009. Among the big players in the market: Citigroup, which says in a July 10, Wall Street Journal article, that it has seen a 30% rise in jumbo business, and Bank of America also claims a big push in the jumbo arena.
Wednesday, September 8, 2010
The Popularity of LEED Homes
With more people wanting to take an active role in "going green", there is growing interest in the concept of LEED homes.
This nationwide green building program can apply to any structure, from corporate buildings to private residences. There is a very precise certification system that allows a home to qualify as a green structure, and it can be an expensive endeavor. For many, the upfront cost can be a deterrent, but for anyone that cares about the environment and their health; it's a small price to pay.
Understanding the long-term benefits of a LEED home encourages many homeowners to take the plunge and go green. In fact, did you know that going green can solve many allergy problems? With childhood asthma and allergy problems on the rise, parents are readily considering the concept of living green.
It is expected that in the next few years green homes, like hybrid cars, will become more common. As popularity rises, upfront costs to go green will go down, allowing more people to enjoy the benefits of living this way. To achieve certification, a home must meet many criteria and be rated by a professional in the LEED industry. They will ensure that the home will operate under certain guidelines before they can deem it a green home.
Some of the qualities necessary to becoming a LEED home are water efficiency, energy efficiency, indoor environment quality, and innovation in design. It's also important that the home meet certain sustainability standards’, meaning it is built on land that was already developed and doesn't impact the environment in a negative way. Going green is something homeowners all over the country are considering. With so much opportunity for solar energy, it's no wonder homeowners continue to see more people opting to build LEED homes.
The benefits of a green home are numerous. For many people, the fact that they are making a positive impact on the environment is incentive enough, but it's nice to consider the other things that one can enjoy with a LEED home.
Lower energy bills, less risk of certain toxins, and improved resale value are some of the benefits. It's no wonder so many people are trying a cleaner green concept in all areas of their lives. From recycling to living green, you can save money and have a clear conscience at the same time.
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