Home Values to Drop by $1.7 Trillion in 2010

Home Values to Drop by $1.7 Trillion in 2010
2010 December 9

U.S. homes are expected to be worth $1.7 trillion less in 2010 than they were worth last year, amid rising foreclosures and the expiration of homebuyer tax credits, said Zillow.

“With foreclosures near an all-time high in late 2010 and high rates of negative equity persisting, it does not appear that the first part of 2011 will bring much relief,” said Stan Humphries, Zillow’s chief economist.

The drop in home values pushed more buyers underwater. In the third quarter of 2010, 23.2% of single family homeowners with mortgages owed more on their mortgage than their home was worth, up from 21.8% in 2009.

About $9 trillion in value has been lost since the market peaked in June 2006. “Despite a strong start to 2010, by the end of the year, homes lost more of their value in 2010 than they did in 2009,” said Humphries.

“Government interventions like the home-buyer tax credit helped buoy the market during the second half of 2009 and the first half of 2010, but we saw a renewed downturn in the last half of this year.”

“It’s a testament to the nearly irresistible force of the overall market correction that government incentives can only temporarily hold back the tide, and that the market will ultimately find its natural equilibrium of supply and demand.”

Only 24% of the 129 markets tracked by Zillow increased in total home value this year. Home values increased $10.8 billion in the Boston metropolitan statistical area, and $10.2 billion in San Diego.

The regions suffering the biggest drops in home prices include New York City, which lost $103.7 billion in value and Los Angeles, where home values fell $38.6 billion.


Household Worth Rose by $1.2 Trillion, Debts Reduce

How to Reduce Homeowners Insurance Costs

How to Reduce Homeowners Insurance Costs: "

Homeowners insurance, also called hazard insurance or home insurance is an insurance policy that combines various personal insurance protections, which can include losses occurring to one’s home, its contents, loss of its use, or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home.

Homeowners insurance is a very important protective measure you can take to secure and protect from perils and losses. Getting the most expensive coverage may be unnecessary, as lower insurance cost will cover you just as well. Now is a good time to examine your policy and look for ways to save money.

The cost of homeowners insurance depends on what it would cost to replace the house and which additional items are attached to the policy. Typically, claims due to floods, earthquakes, or war are excluded. Special insurance can be purchased for these possibilities, including flood insurance.

If you are like most homeowners purchase your home with a mortgage, your lender will require insurance on the property to protect their collateral. In the loan contract, the collateral is your pledge, as a borrower, of the property to your lender, to secure repayment of a loan. It’s best you buy home insurance on your own. If you let your lender buy it on your behalf, the insurance costs will be very high.

Here are some steps you can take to reduce your home insurance costs.

Shop for the best deal. Get more quotes, the better. In addition to the low prices, evaluate which companies provide the best customer service.

Raise your deductible. The higher your deductible, the less premium you’ll have to pay.

Buy your home and automobile policies from the same insurer. Ask for discounts.

Make your home more resistant to disasters. Adding storm shutters and shatter-proof glass or reinforcing your roof. Upgrade your heating, plumbing and electrical systems to reduce the risks of water and fire damage.

Secure your home. Install smoke detectors, burglar alarms and dead-bolt locks.

If you are 55 or older, ask your insurer for discounts.

Review your policy and the value of your possessions. May be you don’t need so much coverage on your personal property.

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Making an Offer on a House

Making an Offer on a House: "

How to make an offer on a house you want to buy.

You have found the house you want and you’re working towards making it your home. Making an offer on a home involves a written offer to buy it, including setting the price and adding contingencies.

Details and planning are important. Know what you would like to pay but also think about the most you’re willing to pay and the total pre-approved loan amount. Be specific, and put everything in writing.

Information contain in your offer should include property address, the amount of money you are offering, target closing date, terms of payment (all cash or mortgage loan), amount of earnest money deposit accompanying the offer, target date for closing, and contingencies.

Negotiate a sales price. Negotiating is a standard practice in real estate, and something that your real estate agent will do on your behalf. The advertised price of a house is just a starting point. It’s up to you to decide how much the house is really worth.

Earnest money is a deposit that you give when making an offer on a house. A cash deposit shows good faith by the buyer to the seller on a written offer. The earnest money will become part of your down payment.

The seller will either accept your offer, make a counteroffer with one or more changes, or reject it outright.

Real estate offers almost always contain contingencies in events that must happen within a certain amount of time or else the deal won’t become final. Your offer contingencies should say “this offer is contingent upon a certain event.” Two common contingencies contained in a buy offer: ability for buyer to obtaining mortgage and a satisfactory report by a home inspector.

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How Reverse Mortgage Help Seniors

How Reverse Mortgage Help Seniors: "

Seniors looking to cash out their equity in their homes should look into getting a reverse mortgage program. A reverse mortgage enables you to withdraw some of the equity in your home.

What is a reverse mortgage?

A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash. The equity that built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence.

Reverse mortgage or lifetime mortgage is used to tap the home equity in the property as one lump sum or multiple payments. The homeowner’s obligation to repay the loan is deferred until the owner dies, the home is sold, or the owner leaves.

In a reverse mortgage, the home owner makes no payments and all interest is added to the lien on the property. If the owner receives monthly payments, or a bulk payment of the available equity percentage for their age, then the debt on the property increases each month.

Difference between a reverse mortgage and a bank home equity loan

With a traditional second mortgage, or a home equity line of credit, you must have sufficient income versus debt ratio to qualify for the loan, and you are required to make monthly mortgage payments.

The reverse mortgage is different in that it pays you, and is available regardless of your current income. The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow.

You don’t make payments, because the loan is not due as long as the house is your principal residence. With a reverse mortgage, you cannot be foreclosed or forced to vacate your house. Like all homeowners, you still are required to pay your real estate taxes, homeowner’s insurance and other conventional payments like utilities.

You do not need to repay the loan as long as you or one of the borrowers continues to live in the house and keeps the taxes and insurance current. You can never owe more than the value of your home at the time you or your heirs sell the home.

To qualify for a reverse mortgage, the borrower must be at least 62 years of age. There are no minimum income or credit requirements, but there are other requirements and homeowners should make sure that they qualify for the loan.

How to receive cash payments

You can receive the reverse mortgage loan funds in different ways.

• Tenure equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.


• Term equal monthly payments for a fixed period of months selected.


• Line of Credit unscheduled payments or installments, at times and in amounts of your choosing until the line of credit is exhausted.


• Modified Tenure combination of line of credit with monthly payments for as long as you remain in the home.


• Modified Term combination of line of credit plus monthly payments for a fixed period of months selected by the borrower.

Reverse Mortgages you can apply for

There are a variety of reverse mortgage products available in the market, such as the FHA-insured Home Equity Conversion Mortgage (HECM) and Home Keeper Mortgage offered by Fannie Mae approved lenders.

To be eligible for a FHA HECM, the FHA requires that you be a homeowner 62 years of age or older, own your home outright, or have a low mortgage balance that can be paid off at closing with proceeds from the reverse loan, and you must live in the home.

You can contact the Housing Counseling Clearinghouse on (800) 569-4287 for a HUD-approved counseling agency and a list of FHA-approved lenders within your area.

You can receive free information about reverse mortgages by calling AARP toll free at (800) 209-8085.

"

How to Avoid Home Buying Mistakes

How to Avoid Home Buying Mistakes: "

There are mistakes which many home buyers make when purchasing a house, but they can be very easily avoided with a little of research and planning. If you arm yourself with these tips to get the most out of your purchase and avoid making costly mistakes that you won’t have to be stuck with the consequences.

Refusing to Confide in Trusted Advisors

Advisors could be your realtor, real estate lawyer, real estate agent. Home buyers withhold information from advisors can be a costly mistake. Buyers do it for fear of how they will be perceived, have a belief they have all the answers, and/or don’t feel it is important enough. Your advisors are representing your best interests and have a fiduciary responsibility to do so.

Find a good buyer’s agent. Buyers should rely heavily on knowledgeable agents to help them in home buying process and can provide valuable resources. Buyer’s agents have a fiduciary responsibility to the buyer exclusively and should be looking out for their best interests. It might not work in your best interest if you are dealing with a seller’s agent without your own.

Not Knowing How Much House You Can Afford

Many first time home buyers spend a lot of time researching homes, but very little time spend on their finances. What you think you can afford and what the bank is willing to lend you may not match up, so make sure to get preapproved for a mortgage loan before house shopping.

You want to talk to a qualified lender and get preapproved for a mortgage. Figuring out how much house you can afford is the first step that prepares you for buying a home.

Never underestimate the costs involved in buying real estate property. Remember to budget for home inspection fees, appraisal fees, loan application fees, credit reports, title insurance, and other costs.

Underestimating the Costs of Owning a Home

When you finance a home purchase with a mortgage loan, the costs of owning a home is more than the monthly mortgage payment. Do not forgetting to include property taxes, maintenance costs, and home insurance into your calculation of housing costs.

When considering how much your budget is for your new home, you must consider your borrowing capacity — your ability to make regular payments on your possible home loan.

Maintenance Costs. Many home buyers don’t anticipate the additional costs for repair and maintenance, or for an increase in utility costs. Consider the age of your new home. Be prepared to set aside a small budget annually for repairs and upkeep.

Property Taxes. You should know how property taxes will have to pay and factored it into your home buying budget. Call the local county tax assessor’s office or ask your agent or the seller.

Home Insurance. Homeowner’s insurance is a requirement by your lender since they want to protect their collateral from perils. Get recommends from your agent and shop around for the best deal. Don’t pay too much for over coverage.

No Home Purchase Contract Contingencies

Finally, you want to include a contingency clause in the contract. A mortgage financing contingency clause protects you. A contingency would let buyers back out of a purchase contract. That is, to cancel a contract without penalty, meaning buyers would get back the money deposit used to secure the property. Without the clause, a buyer can lose that money and still be obligated to buy the house.

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YouTube - Carmel Mission

Nice video of the Carmel Mission from You Tube


"Host Beth Fisher takes you to one of California's famous missions.

Fixed-Rate Mortgages Rise, 30-Year Fixed Above 5%

Fixed-Rate Mortgages Rise, 30-Year Fixed Above 5%: "

Mortgage rates climbed for the first time in three weeks, increasing borrowing costs as new home sales slumped to the lowest level on record, according to Freddie Mac’s weekly survey of conforming mortgage rates.

Mortgage rates are widely seen to be on an upward trajectory this year. Rising mortgage rates do not bode well for the housing market, which remains highly vulnerable.

Rates on the 30-year fixed-rate mortgage averaged 5.05% for the week ending February 25, 2010, up from 4.93% last week, and 5.07% a year ago.

15-year fixed-rate mortgage averaged 4.40%, up from 4.33% last week, and 4.68% a year ago.

5-year Treasury-indexed hybrid adjustable-rate mortgages (ARM) averaged 4.16%, up from 4.12% last week; they averaged 5.06% a year ago.

1-year Treasury-indexed adjustable-rate mortgages (ARM) averaged 4.15%, down from 4.23% last week, and 4.81% a year ago.

To obtain the rates, the fixed-rate mortgages required payment of an average 0.7 point and the adjustable-rate mortgages required an average 0.6 point. A point is 1% of the mortgage amount, charged as prepaid interest.

“Interest rates for 30-year fixed mortgages followed long-term bond yields higher and rose above 5% this week amid a mixed set of economic data reports” said Frank Nothaft, Freddie Mac vice president and chief economist.

Mortgage rates are linked to yields on Treasuries and mortgage-backed securities.

“For instance, the January producer price index jumped well above the market consensus, but the consumer price index remained subdued and consumer confidence declined to the lowest level since April 2009, according to the Conference Board.” Nothaft said.

Mortgage rates may rise further when the Federal Reserve ends its’ program to purchase as much as $1.25 trillion in mortgage-backed securities next month. The mortgage purchase program is credited with helping reduce mortgage rates.

Lower mortgage rates and the home buyer tax credits weren’t enough to boost new home sales in January 2010. Sales of new homes in the fell to the lowest level on record, slumping 11% to an annual pace of 309,000 units, the Commerce Department reported.

Median sales price declined 2.4% to $203,500 and the supply of unsold homes increased to 9.1 months worth at the current sales rate.

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Sunset At Moss Landing on Flickr - Photo Sharing! Nice Photo I found on the internet.

Sunset At Moss Landing on Flickr - Photo Sharing!: "Sunset At Moss Landing. ... Click this icon to see all public photos and videos tagged with moss landing moss landing. Show machine tags (0) Hide machine ...
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How to Get Free Credit Report

How to Get Free Credit Report: "

When financing for a home purchase or mortgage refinance, you’ll need to know your credit. Lenders will look into your credit report to determine your creditworthiness, the interest rate to give you and the loan amount.

The Fair Credit Reporting Act is an United States federal law (codified at 15 U.S.C. § 1681 et seq.) that regulates the collection, dissemination, and use of consumer information, including consumer credit information.

The Fair Credit Reporting Act allows you to receive a free copy of your credit report from the top three credit reporting bureaus. This report is provided at no cost to you and can be requested every 12 months.

Annualcreditreport.com is a website jointly operated by the three major U.S. credit reporting agencies Equifax, Experian, and TransUnion. Annualcreditreport.com was created in order to comply with their obligations under the Fair and Accurate Credit Transactions Act (FACTA) to provide a mechanism for American consumers to receive a free annual credit report.

To obtain a free credit report, consumers register with the website and provide their basic identification information, such as name, address and social security number. You are not required to give their credit card.

Consumers are then sent to the website of the individual credit reporting agency they select, where they are asked additional security questions to confirm their identity before getting their report.

A consumer can request reports from all three agencies at the same time or stagger the requests throughout the twelve month period as a way to self-monitor their credit data.

Credit inquiry does not affect credit score. Using this service does not lower the consumer’s credit score, as it counts as a soft credit pull. However, hard credit pulls made by lenders, such as applying for a loan, directly affect the borrower’s credit score.

Mailing address:

Annual Credit Report Request Service

P.O. Box 105281

Atlanta, GA 30348-5281

1-877-322-8228

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List of Title Insurance Companies

List of Title Insurance Companies: "

Title Insurance is indemnity insurance against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage liens.

Title insurance exists in the United States in great part because of a comparative deficiency in the U.S. land records laws.

Title insurance is meant to protect an owner’s or a lender’s financial interest in real property against loss due to title defects, liens or other matters.

Humans are involved in recording deed transfers and plotting land parcels, so title insurance will protect you against defects and human error.

It will defend against a lawsuit attacking the title as it is insured, or reimburse the insured for the actual monetary loss incurred, up to the dollar amount of insurance provided by the policy.

Title insurance premiums are paid once and the fee is due when you buy. You will never pay it again. Typically, the buyer pays for the lender’s coverage.

Five U.S. national families of title insurers:

First American Corporation

Fidelity National Financial

LandAmerica

Stewart

Old Republic International

Owner’s Title Policy Coverage

The owner’s policy assures a purchaser that the title to the property is vested in that purchaser and that it is free from all defects, liens and encumbrances except those which are listed as exceptions in the policy or are excluded from the scope of the policy’s coverage. It also covers losses and damages suffered if the title is unmarketable. The policy also provides coverage for loss if there is no right of access to the land.

Lender’s Title Policy Coverage or Loan Policy

Loan policy it is issued only to mortgage lenders. It follows the assignment of the mortgage loan. The title insurance benefits the purchaser of the loan if the loan is sold. These policies greatly facilitate the sale of mortgages into the secondary market, such as purchasers like Fannie Mae and Freddie Mac.

Title Policy Coverage: Mechanic’s liens and unrecorded liens, Unrecorded easements and access rights, Defects and other unrecorded documents

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List of Mortgage Insurance Companies

List of Mortgage Insurance Companies: "

Mortgage Insurance or mortgage guaranty is an insurance policy which compensates lenders or investors for losses due to the default of a mortgage loan. Mortgage insurance can be either public or private depending upon the insurer.

Private mortgage insurance is typically required when down payments are below 20%. Rates can range from 1.5% to 6% of the principal of the loan per year based upon loan factors such as the percent of the loan insured, loan-to-value, fixed or variable, and credit score.

List of Mortgage Insurance Companies

Commonwealth Mortgage Insurance Company

Home Guaranty Insurance Corporation

Investors Mortgage Insurance Company

PMI Mortgage Insurance Company

Triad Guaranty Insurance Corporation

U.S. Mortgage Insurance Corporation

GE Capital Mortgage Insurance

Integon Mortgage Guaranty Corporation

MGIC Mortgage Guaranty Insurance Corporation

Republic Mortgage Insurance Company

United Guaranty Corporation

Radian Group

Verex Assurance

Genworth Financial

CMG Mortgage Insurance Company

Mortgage Insurance Companies of America

PrivateMI.com from the Mortgage Insurance Companies of America helps consumers understand private mortgage insurance and how they can make it work for them. The Mortgage Insurance Companies of America represents the private mortgage insurance industry.

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Seaside California

Seaside California: "

	Seaside California City Seaside the state of California / CA ........................................................................................................... www.fantasticplanet.tv ....................................................................................... http ....................................................................................... www.jazeboo.com	From: fantasticplanettvus2 Views: 262 0 ratings
	Time: 04:14	More in Education

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What is an Escrow Account

What is an Escrow Account: "

Escrow Account is used to collect and hold funds to pay for property taxes homeowners insurance premiums or other charges when they become due.

Escrow account is established for you by your mortgage lender and you make payments monthly along with your mortgage payment.

Escrow payment is an amount over and above the principal and interest portion of a mortgage payment. The sum total of all elements is referred to as PITI, for “Principal, Interest, Tax, and Insurance”.

Some mortgage lenders require borrowers to maintain an escrow account that pays the property taxes and homeowners insurance. While, other lenders offer it as an option for borrowers.

Borrowers without an escrow account typically pay property tax once a year (can be paid in two installments) and homeowners insurance in one payment (monthly installments is available).

FHA loans require the lender to maintain an escrow account for the life of the loan.

Calculating Payment for Escrow Account

The amount of your monthly mortgage payment, plus property taxes and homeowners insurance is collected by your mortgage company. The escrow funds can be used only to pay property taxes and home insurance on your behalf.

Your mortgage company pays the taxes and insurance bills for you when they are due. Your mortgage company may make adjustment to escrow payment when there are changes in your property tax and home insurance costs.

Example of how escrow payments are calculated:

Annual property taxes: $2,400 / 12 months = $200 per month

Annual homeowners insurance: $660 / 12 months = $55 per month

Total monthly taxes and insurance: $255

If your mortgage payment is $1,500, then your total monthly payment or PITI (Principal, Interest, Tax, and Insurance) is $1,755.

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Obama Updates Rule for Homeowners in Foreclosure Avoidance Program

Obama Updates Rule for Homeowners in Foreclosure Avoidance Program: "

Documentation Collection Process and Releases Guidance to Expedite Permanent Loan Modifications

Homeowners seeking to ease their mortgage terms must now document their finances before a trial modification will be granted, the Obama administration says.

As part of the Administration’s ongoing housing market stabilization plan, the U.S. Department of the Treasury and the Department of Housing and Urban Development (HUD) released updated guidance for mortgage servicers participating in the Administration’s mortgage modification program.

This guidance refines the documentation requirements in order to expedite conversions of current trial modifications to permanent ones. Mortgage servicers must adopt the policy by June 1, 2010.

The new procedure would require three documents upfront: a formal application including a description of the hardship; proof of income with at least two pay stubs or profit and loss statement for self-employed borrowers; and a form authorizing the Internal Revenue Service to release tax data to the mortgage servicer.

Effective for all trial period plans with effective dates on or after June 1, 2010, a mortgage servicer may evaluate a borrower for Home Affordable Modification Program (HAMP) only after the servicer receives the following documents, subsequently referred to as the Initial Package.

The Initial Package includes: Request for Modification and Affidavit (RMA) Form, IRS Form 4506-T or 4506T-EZ, and Evidence of Income.

HAMP, launched last spring, was designed to provide billions of dollars in subsidies to encourage lenders to forestall foreclosures by reducing mortgage payments to 31% of the borrowers’ household income. The goal was to offer loan modifications to 3 million borrowers, of the 902,620 trial loan modifications offered since the program started last spring, only 112,521 have been made permanent.

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Fixed Rate Mortgage vs Adjustable Rate Mortgage Loans

Fixed Rate Mortgage vs Adjustable Rate Mortgage Loans: "

When you shop for a mortgage loan to finance your new home purchase, commonly there are two basic types: fixed rate mortgage and adjustable rate mortgage.

There is no single right loan, since every home buyers circumstance and risk factor differ.

Fixed Rate Mortgage

Fixed Rate Mortgage is a mortgage loan where the interest rate on the note remains the same through the term of the loan.

The calculation of the monthly payment, or loan amortization, is computed from the interest rate, compounding frequency, loan amount, and term of the mortgage.

This monthly payment amount is independent of the additional costs on a home sometimes handled in escrow, such as property tax and home insurance.

Consequently, total costs to borrowers may change over time with the changing escrow amount, but the payments handling the principal and interest on the loan will remain the same.

The advantage of the fixed rate mortgage is that the payment is the same each month, thus reduces your risk with payments fluctuating. The disadvantage is that the interest is generally a little higher than an adjustable rate or interest only loan.

Adjustable Rate Mortgage

Adjustable Rate Mortgage (ARM) is a mortgage loan where the interest rate on the note is periodically adjusted based on a variety of indices.

Adjustable rate mortgages are characterized by their index and limitations on charges or caps.

The advantage of an adjustable rate mortgage is that the rate and monthly payments are usually lower than a fixed rate mortgage. The disadvantage is that borrowers take risk of interest rate moving up, thus suddenly increasing monthly payment.

Basic features of Adjustable Rate Mortgage loans are:

• Initial interest rate. This is the beginning interest rate on an Adjustable Rate Mortgage.


• Adjustment period. This is the length of time that the interest rate or loan period on an Adjustable Rate Mortgage is scheduled to remain unchanged.


• Index rate. Lenders base ARM rates on a variety of indices, the most common being rates on 1-, 3-, or 5-year Treasury securities, national or regional average cost of funds to savings and loans.


• Margin. This is the percentage points that lenders add to the index rate to determine the ARM’s interest rate.


• Interest rate caps. These are the limits on how much the interest rate or the monthly payment can be changed at the end of each adjustment period or over the life of the loan.


• Initial discounts. These are interest rate concessions, often used as promotional aids, offered the first year or more of a loan.


• Conversion. The agreement with the lender may have a clause that allows the buyer to convert the ARM to a fixed-rate mortgage at designated times.

Adjustable Rate Mortgage types

Hybrid Adjustable Rate Mortgage Hybrid ARM features an interest rate that is fixed for an initial period of time, then adjusts thereafter. The hybrid refers to the ARM’s blend of fixed-rate and adjustable-rate characteristics. Hybrid ARMs are referred to by their initial fixed-rate and adjustable-rate periods, for example 5/1 ARM with a 5-year fixed interest-rate period and subsequent 1-year interest-rate adjustment periods.

Option Adjustable Rate Mortgage Option ARM is typically a 30-year ARM that initially offers the borrower four monthly payment options: a specified minimum payment, an interest-only payment, a 15-year fully amortizing payment, and a 30-year fully amortizing payment. These types of loans are also called pick-a-payment or pay-option ARMs.

Cash Flow Adjustable Rate Mortgage Cash flow ARM is a minimum payment option mortgage loan and allows a borrower to choose their monthly payment from several options. These payment options usually include the option to pay at the 30 year level, 15 year level, interest only level, and a minimum payment level.

The minimum payment level is usually lower than the interest only payment. This type of loan can result in negative amortization. The option to make a minimum payment is usually available only for the first several years of the loan.

Prepayment of Mortgage Loan

Adjustable rate mortgages, fixed rate mortgages, and other types of mortgages usually allow the borrower to prepay principal early without penalty.

Early payments of part of the principal will reduce the total cost of the loan or interest paid.

With a fixed rate mortgage, early payments will shorten the amount of time needed to pay off the loan.

With an adjustable rate mortgage, early payments will not shorten the amount of time needed to pay off the loan. Upon each recasting, the new fully indexed interest rate is applied to the remaining principal to end within the remaining term schedule.

Ask lenders about prepayment penalties. Prepayment terms are negotiable.

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Mortgage Difference Between Interest Rate and APR

Mortgage Difference Between Interest Rate and APR: "

When shopping for a mortgage, comparing loan offers can be confusing. Often lenders advertise low interest rates to attract borrowers. The interest rate is used to calculate the monthly payment (note rate) is only one part of the overall mortgage costs.

Annual Percentage Rate (APR) is a much better indicator than just the interest rate of the actual cost of a mortgage loan, as it estimates what you’ll pay over the course of an entire year. The federal Truth in Lending Act requires mortgage lenders to list the APR of loans.

APR is calculated from interest rate, origination fees, points, mortgage insurance premiums, inspections, prepaid interest and other lender fees may also be required to obtain a mortgage.

When comparing home loans, that is why it’s better to look at the APR. Although it’s not perfect, there are other costs which is not included, such as title insurance. However, APR gives borrowers a nice standard for comparing the percentage costs of mortgage loans.

When you apply for a mortgage the Federal Truth in Lending Disclosure form will be sent, which includes the Note Rate (the interest rate used to calculate your monthly payments) and the Annual Percentage Rate (APR).

The Annual Percentage Rate will be higher than the Note Rate, because the APR includes other borrowing costs associated with obtaining a mortgage loan.

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Dispute Your Property Tax, Lower Your Tax Bill

Dispute Your Property Tax, Lower Your Tax Bill: "

When your real estate market and house values in your area are falling, it time to appeal for a reassessment on your property from your local tax assessor. Nationwide, over half of all homes are over assessed when it comes to calculating property taxes. It’s not fair for you to be paying more than your tax obligation.

You may need to follow tax grievance procedures to cause your local tax assessor office to lower your home assessed value.

Research local housing markets. Find out the sale price of recently sold houses in your neighborhood. Get an appraisal. Appraised value is an objective evaluation of fair-market value. This will be a great indication of whether your house is over assessed.

For tax purposes, assessed values are often lower than fair market value and should never be higher than that.

Each year, your County Tax Collection or Assessor’s office send out real property tax statement. If your a new homeowner or didn’t get a statement, many counties now have this information available online through their websites. You’ll probably have to take a trip down to the tax assessor’s office and you can ask for a copy there.

Grieve your taxes by filling out the appropriate forms from the local designated office. If you recently purchased the house, have your HUD-1 Settlement Statement from your closing and the bank-ordered appraisal. Ask tax assessor office print-outs of nearby comparable houses that are assessed lower than yours. Provide your real estate agent’s comparative analysis report of recently sold houses that support your case.

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Artichokes, sanddabs, and other Monterey County foods

Artichokes, sanddabs, and other Monterey County foods: "

	Artichokes, sanddabs, and other Monterey County foods See a demonstration of how to eat an artichoke at 1:00. Get tips on how to eat an artichoke, what a sanddab is, and all about other Monterey County special foods. Learn more about area food at www.seemonterey.com	From: SeeMonterey Views: 129 0 ratings
	Time: 01:55	More in Travel & Events

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Why Use A Real Estate Agent or Broker

Why Use A Real Estate Agent or Broker: "

REAL ESTATE AGENTS and REAL ESTATE BROKERS

For most people, real estate transactions are the biggest investment they will make in their life. It’s only wise to invest a bit of money on the services of proven professionals.

Structuring transactions, arranging financing and finding the right buyers are some of the keys to success. There are few entities that know as much about the trends in today’s market as your local real estate agent or broker.

Selling or buying a home can be one of the most important financial transactions in your life. That’s why it pays to work with a real estate professional who specializes in this field. Hiring a licensed real estate agent or broker will save you from costly mistakes and provides you access to resources you otherwise don’t have.

Becoming a licensed agent or broker requires thorough training and examination. Several states require continuing education in real estate for license renewal. These specialists are compensated on their ability to sell properties quickly and cost-efficiently — and their expert abilities are chargeable only when a transaction is complete.

Why It Pays to Use a Real Estate Professional

• When you use an agent, you’ll get the benefit of professional experience from the moment you consider selling your house. Your agent will help you establish a fair market value from his or her daily dealings in your neighborhood, and arrange financing terms that make it easier to obtain a quick sale in today’s market — helping you receive the equity in your home.


• If you wish to participate in financing the purchase of your property, your agent or broker can structure a workable plan that helps reduce risk from unusual terms — and give you an estimate of the anticipated yield from carrying a property-secured financing plan.


• Real estate agents are professionals at marketing properties — that’s their job. They can choose the media — and the message — that brings interested prospects to your home. They’ll interview and qualify buyers for you. They’ll use their sales skills and negotiating techniques to help you receive the best possible return on your sale.


• Every brokerage office has a steady stream of prospects that no individual can match. National referral networks and multiple listing services also help to reach buyers from out of town — or out of state. Many corporate relocation clients may be working with a broker before a move is made.


• When you work with an agent or broker, they will follow-up with other agents who have shown your property and share their constructive comments on cosmetic repairs, financing arrangements, or re-evaluating your list price.


• An agreement between buyer and seller is just the beginning of a final transaction. From that point on your agent or broker can handle the details and paperwork necessary to make it complete: from building and termite reports to fire insurance and closing arrangements with the escrow company, title company or closing attorney.


• As an expert in real estate, your agent or broker will give you advance estimates of your closing costs and net proceeds from the sale, as well as keeping you informed of the details to assure a smooth and timely closing.

Buying a Home with a Realtor

For most of us, a home is the single biggest purchase in our lives. The enormity of the financial transaction aside, finding the right home to fit our particular needs and wants is no easy undertaking. Just as you wouldn’t buy a car, computer or camcorder without doing some research into various models and prices, you shouldn’t consider purchasing a home without some expert advice and guidance. Though some people may think of using the services of a Realtor only when selling their homes, a Realtor can be invaluable when buying one as well.

A Realtor can help you determine how much home you can afford based on your financial situation, help you get prequalified for a loan, and even inform you about available financing options. A Realtor also is an expert on the neighborhood, and can provide detailed information about schools, transportation, local taxes and community characteristics.

Using a Realtor also means gaining access to homes listed in Multiple Listing Service (MLS), an important marketing tool used by Realtor to inform other Realtor about available properties. That means a Realtor can give you information about a wide range of available homes from which to choose.

When it comes to finding out if you’re paying too much, a Realtor can provide you with market analysis comparing asking and selling prices of homes in the neighborhood. Finally, a Realtor can serve as the liaison between you and the seller, bringing to the table negotiating expertise and knowledge about required disclosures and the housing market.

A Realtor as a Buyer’s Agent gets pay commission from the Seller. So, take advantage of a Realtor’s expertise, resources, and avoid costly mistakes when buying a home.

A Realtor is a member of the National Association of REALTORS®, which adheres to a strict code of ethics.

"

Steps to Buying a Home, Residental Real Estate

Steps to Buying a Home, Residental Real Estate: "

Buying a home can be one of the most important and biggest financial transactions in your life. Residential real estate transaction involves several stages. It’s can be complicated and confusing.

Each individual home buyer situation may vary and it is best to contact a real estate agent or broker. A Buyer’s Agent will work with you buying home process and best of all the Seller pays your agent.

Your real estate agent can help you determine how much home you can afford based on your financial situation, help you get prequalified for a loan, and even inform you about available financing options. Your agent also is an expert on the neighborhood, and can provide detailed information about schools, transportation, shopping centers, local taxes and community characteristics.

Using your agent, you will gain access to homes listed in Multiple Listing Service (MLS), which gives you information about a wide range of available homes from which to choose. Your agent can provide you with market analysis comparing asking and selling prices of homes in the neighborhood.

Finally, your agent serves as the liaison between you and the seller, helping you negotiate, and access to other services, such as home inspection, title insurance, home insurance, appraisals, home loan lenders, mortgage brokers, escrow, and contractors.

Common Steps to Buying a Home

Initial Meeting. Select real estate agent, Determine needs and wants, Determine financial eligibility

Loan Qualification. Discuss finances, Obtain prequalification

House Shopping. Select an affordable property that fits your needs, Discuss offer with agent, Buyer reviews contract with agent, Agent presents offer to selling side

Present and Negotiate Offer. Buyer prepares offer deposit (typically, 1 to 3% of purchase price). Seller accepts offer (Seller can accept your offer, counter your offer, or reject your offer)

Open Escrow. Deposit “earnest money” into escrow, Escrow will order Preliminary Report

Submit Loan Application. Conduct Physical Inspection of property by a qualified inspector, Approve seller’s Transfer Disclosure Statement, Approve Preliminary Report, Conduct property appraisal, Obtain loan approval from lender

Obtain Homeowner’s Insurance. Select insurance company and coverage, Insurance will be in effect at close of escrow

Home Warranty Insurance. Title company receives signed documents

Down Payment. Need cashier’s check or money transfer prior to closing date

Closing the Escrow. Deposit down payment and closing costs to escrow, Lender sends balance of purchase price to title company, Deed is recorded with County Recorder’s office

Get your keys and move in to your new home.

"

Marina State Beach, CA and Ocean Sunset

Marina State Beach, CA and Ocean Sunset: "

	Marina State Beach, CA and Ocean Sunset Watch in HQ please :) In this video, it shows my cousins Gretchen and Steven and I enjoy a late afternoon at Marina State Beach, CA. Record high temps were expected early this week, around in the low 90's inland! So I decided why not go to the beach to relax and escape the heat. So here, the 3 of us chilled and walked around Marina State Beach. It was so refreshing to feel the cold ocean on our feet since it was so unseasonably warm lately. Then when it was around 7:30 or so, we decided to ...	From: 54spiritedwill54 Views: 1349 1 ratings
	Time: 09:54	More in Travel & Events

"

Marina California

Marina California: "

	Marina California City Marina the state of California / CA ........................................................................................................... www.fantasticplanet.tv ....................................................................................... http ....................................................................................... www.jazeboo.com	From: FantasticPlanetTV Views: 339 4 ratings
	Time: 03:58	More in Education

"

Loan Modification – What it Really Takes to Get Yours Through

Loan Modification – What it Really Takes to Get Yours Through: "

Loan modification is still the #1 best alternative to foreclosure. But getting one through requires some little-known information and strategy. You’ve got to know what the banks are looking for, and how to fill out the paperwork so you not only qualify for loan modification, but get in on those unheard of two and three percent interest rates that can make your monthly payment go down by as much as 40 – 50%!

Banks are allowing some pretty unbelievable workouts with unheard of low rates. Has there ever been a time when you got a 2% interest rate! That is happening everyday to some people. Will you ever have this opportunity to lock in these silly low rates again? Probably not, so take your loan modification paperwork VERY seriously and don’t talk yourself out of your own modification.

If you’re one of the millions who make up 1 in 7 homes in foreclosure or default, then what you’re about to learn can stop your foreclosure and substantially reduce your monthly mortgage payment – giving you the financial relief you need to stay afloat and stabilize your life with lower mortgage payments now and over the long run.

The main problem – and what stands between you and a modified lower monthly payment – has been perfectly summed up in this recent Los Angeles Times article…

“Getting loans through the system to the modification finish line is tough for banks and loan servicers,” says Douglas Potolsky, Chase Home Lending senior vice president. “The main obstacle, he and other banks say, is borrowers who don’t properly complete their paperwork.”

The trick is to know how to fill out the darn paperwork so you don’t talk yourself right out of your own modification!

90% of the loan modification requests are not going through because people fill out their paperwork to their DISADVANTAGE. They either disqualify themselves because they show they make too much, or too little, to afford the NEW modified payment – that’s the lower one that’s based on the 2% to 4% rates that bank can give you in modification, but won’t if your financials and other paperwork pieces qualify for this payment.

90% of the people who fill out the paperwork for loan modification do not know how the banks are looking at their numbers and story. Banks actually have a couple of formulas they work by when calculating your financials in relation to your hardship letter, pay stubs, checking account statements, and past 2 years of income tax returns. You must make all of these pieces jibe together for one consistent financial hardship story.

Basically this is how you want to fill out the main two pieces of paperwork for loan modification – the hardship letter and financial worksheet:

1. Hardship letter: Be consistent and make sure the hardship “story” and the numbers you provide on your financial worksheet make one strong, consistent picture. In about 1 – 1 ½ pages, make sure you give the following information in this sequence:

a. Include your loan number at the top

b. ASK for a loan modification in the first sentence

c. Make it evident that you are capable of earning consistent income, but right now, your hardship is making your mortgage – and life – unaffordable. Tell them you need help

d. Explain – with emotion – all of the reasons you’re in hardship. Banks are especially looking for things like reduced or lost income from one or more household members, increased expenses that were unexpected or unavoidable, a medical problem that left you sick or disabled and from earning income, and/or caused increased expenses, etc.

e. ASK FOR WHAT YOU WANT – ask for a low interest rate (2%-3%) for the first 5 years while you get back on your feet; and then ask that they stretch your loan term out to 40 years; and that the remaining 35 years be at 4% to 5%. Use an amortization calculator (search online) and calculate what your payment would be at 2%, 3%, 4%, and 5%. Tell them that you CAN afford payments based on a 2%, 3% right now, and that later, because of better work projections or opportunities – or whatever reason – that you can later afford a payment based on 4% or 5%. I always ask for 2% for the first 5 years and then 4% to 5% for the rest of a 40 year loan when I help people fill out their paperwork.

f. Close with a sentence or two that tells them you want to keep you and your family in your home (mention of kids if you have them helps) and that you want to avoid foreclosure and further damage to your credit.

2. Financial worksheet/Personal budget: Get this form from your bank. Your modification will go through faster and cleaner is you use the banks form instead of making your own Excel spreadsheet. One of the banks formulas I was telling you about comes into play when they review your financial worksheet. This is where most people blow their chances for getting a modification. The banks are looking to see that you can afford the new, modified payment – the one based on 2% or 3% – with about $200 to $300 left over. This is a fine line between showing that you don’t make too much or too little to afford the modified payment. This is how you get to that balancing point:

a. For now, where you see the line to write in your monthly mortgage expense, do not put in your current payment. Put in the modified payment you’re going after – the one that you calculated with the amortization calculator at 2% (or 3%) or somewhere in between. This is a temporary placeholder for the purpose of getting the sum of this payment plus all your other monthly expenses minus your monthly income to come out to about $200 – $300 left over. Then, before you fax in this worksheet with your other paperwork, make sure you erase that lower mortgage payment that served as a placeholder to make all of your numbers jibe, fill in your actual, current mortgage payment. Or make a copy of the blank worksheet like I do – then it’s clean as a whistle.

b. Write in your income and all of your other expenses. The trick is using some of the categories that are not easily tracked – like your monthly food, gas, and credit card payments – that you can increase or decrease if you need to get your end balance to be at that $200 – $300 left over after Income minus Expenses. Realize that they will be cross-checking the numbers on your financial worksheet with your checking account statements (you submit the past two months checking and savings bank statements). Realize too that if you have a bunch of money (over $2,000 or $3,000 sitting in savings), that the bank will see this as a place you can pull from and pay them.

Most people don’t understand what’s behind the banks strategy and that they are indeed debt collectors! They want to make sure you can pay or they’re not going to give you a new loan (modified loan). People don’t realize what they should ask for, what to say … and what not to say … or how to talk to their bank to get the right story on record. Because they don’t have this critical insight, many are losing out on the best loan modification opportunity of the century.

I help and counsel people through loan modification, and have an eBook that outlines steps to modification and virtually every other option you can take to avoid foreclosure in my book called, “How to Survive Foreclosure or Avoid it Altogether.”

Learn more at www.surviveyourforeclosure.com

Elin Bullmann is the author, instructor, and counselor of “How to Survive Foreclosure or Avoid it Altogether.” She has successfully gotten 100% of the modifications through for people she has helped. Her 200+ page eBook covers every aspect you need to be aware of when facing foreclosure. She worked with dozens of experts and pulled together their best advice on avoiding foreclosure, foreclosure postponement, loan modification, short sale, bankruptcy versus foreclosure, and tax and legal issues.

Article Source: Loan Modification – What it Really Takes to Get Yours Through

"

The Real Estate Short Sale Process

The Real Estate Short Sale Process: "

Real Estate Short Sale is when the lender allows a property to be sold for less than the amount owed on a mortgage and takes a loss.

This is when a borrower cannot pay the mortgage loan on their home, but the lender decides that selling the property at a moderate loss is better than going through a foreclosure process.

Both the borrower and lender agree to the real estate short sale process, because it allows them to avoid foreclosure. A foreclosure involves hefty fees and longer sales process for the bank and poorer credit report for the borrower.

A short sale is the most economical solution to a problem. Banks will incur a smaller financial loss than foreclosure or continued non-payment, nonperforming loan on their books. Borrowers are able to mitigate damage to their credit report and free of the debt. For both parties, a short sale is faster and less expensive than a foreclosure.

Steps for Real Estate Short Sale

Home Valuation for a Real Estate Short Sale

Typically, banks will consider a real estate short sale when the homeowner has an upside-down mortgage loan, wherein the home is worth less than the debt. If there is sufficient home equity, your bank will not consider a short sale.

Real estate short sale presents an opportunity for underwater borrowers who owe more on their mortgage than their property is worth and are having trouble selling the home to avoid foreclosure.

Contact Bank for a Real Estate Short Sale

The borrower must get the bank to approve in writing for a short sale. The first step is call your bank.

Hardship Letter for Real Estate Sale

The bank will want your side of the story in writing. This is where the borrower provides written statements and financial documentation for the bank to determine qualification for real estate short sale. Along with the financial hardship letter, you must prepare detailed set of financial documents to support the claim for a short sale.

Lenders often do loss mitigation that evaluate potential short sale transactions. Most lenders have pre-determined criteria for short sale transactions. They may or may not be open to offers. You must make a compelling case that a real estate short sale is in both parties best interest.

Lenders will typically determine the amount of home equity or lack thereof, by determining the probable selling price from an appraisal, Automated Valuation Model (AVM) or Broker Price Opinion (BPO).

If lenders see the possibility of recouping more of their funds from real estate short sale, they will approve it. Since, the short sale process will be less costly, and a sale will be completed sooner than a foreclosure.

Lenders may accept short sale offers or requests even if a Notice of Default has not been issued or recorded.

Real Estate Short Sale Agreement

A short sale does not extinguish the remaining balance of the loan, unless settlement is clearly indicated on the acceptance of offer by the bank. You might want to hire a real estate agent or real estate attorney that specialized in real estate short sale to help you through the process and protect your interest.

"

Home ready for quake? 10 tips

Home ready for quake? 10 tips: "Might it be time to rethink your own earthquake prep for your home? Here’s 10 tips from the Insurance Information Network of California."

Proving the Value of a Buyer’s Agent

Proving the Value of a Buyer’s Agent: "

It seems that the world is at our fingertips, literally now, thanks to the Internet. Almost anything you could possibly want to know about is just a couple clicks away. This is certainly true when it comes to the real estate industry. New sites pop up all the time showing potential homebuyers exactly what a property looks like, inside and out, whether it be with photos or video. Now, many househunters may wonder why they need to enlist the services of a buyer’s agent at all.

Josh Aberson blogs about the importance of proving to your clients, and potential clients, the true value of a buyer’s agent.

“There are many industries and businesses in this world that offer free services. I can think of a few right away that you always hear of: free consultations with attorneys for legal matters or free quotes from service providers like contractors and electricians.

Thinking about this is what ultimately led me to this conclusion: there is no better value than the services provided by a buyer’s agent representative! Just to name a few, let’s take a second to really see, as a buyer, what services you’re all receiving for free.

1. Representation

This is by far and away the most important example. There is no more important asset in real estate, than having a professional represent you. In most cases, purchasing a home is one of the biggest investments you’ll ever make. Would it not then be a good idea to have a qualified and competent professional assisting you in the process? As with many other industries, real estate is often complicated, requiring creativity and experience to realize a positive outcome. You certainly won’t receive any services being listed here if you’re not actually being represented.

2. Knowledge

In most markets, there are thousands of homes listed for sale at any given point in time. Each home having a different set of reasons why it is or isn’t priced a certain way. Knowledge of the market is one of the most difficult things to acquire as an agent, simply because it takes so much time. I know you’ve spent 4 hours a day for 6 weeks looking at homes online, but that probably doesn’t qualify you to accurately access market values.”

Many potential homebuyers, and perhaps in particular, first-time home buyers who may not be aware of all the details and intricacies of the home-buying process, may not feel the need to enlist the services of a buyer’s agent, but they contribute to making the experience an easier and smoother one.

Click through now to read Josh Aberson’s blog about proving the true value of a buyer’s agent.

Sign up for a free Featured Blog on Realtor.com today.

"

FHA Home Loan

FHA Home Loan: "

FHA Loan is a federal assistance mortgage loan insured by the Federal Housing Administration. FHA is a United States government agency created as part of the National Housing Act of 1934. The creation of the Federal Housing Administration successfully increased the size of the housing market.

FHA is not a mortgage lender, but instead guarantees mortgage loans, making the borrower much more likely to get approved for the loan through a lender. FHA guarantees mortgage loans for borrowers who may not be able to get approved for a loan otherwise because of low income, low down payment or poor credit score.

An FHA guarantee means that lenders will receive funds from FHA if the borrower defaults on the loan and the home is foreclosed. This makes the borrower more appealing to lenders who normally might not approve the borrower for a loan.

How to obtain a FHA loan

The first step in obtaining an FHA loan is to contact several lenders or mortgage brokers and ask them if they originate FHA loans. Not every mortgage lender accepts FHA loans. As each lender sets its own rates and terms, so shop around. Borrowers must apply for mortgage loans and meet the credit and income qualifications set forth by the lender for FHA loans.

Second, the potential lender assesses the prospective home buyer for risk. Factors, such as your debt-to-income ratio, monthly income and expenses, and payment history on other debts, are used by lender to make decisions regarding eligibility and terms for a loan.

Finally after receiving FHA and lender approvals, the borrower closes on the mortgage loan and owns the home. FHA loans can be refinanced, also you can refinance a traditional mortgage into FHA loan.

FHA Down Payment

A borrower’s down payment may come from a number of sources. The 3.5% requirement can be satisfied with the borrower using their own cash or receiving a gift from a family member, their employer, labor union, non-profit or government entity.

FHA Mortgage Insurance

The FHA insures only a limited range of mortgages provided by FHA-approved lenders. PMI insurers service mortgages of the conventional market. PMI is required if a homebuyer borrows more than 80% of the property’s purchase price in one loan; the FHA insurance is required for any FHA mortgage, irrespective of the size of the down payment provided.

FHA’s mortgage insurance programs help low and moderate-income families become homeowners by lowering some of the costs of their mortgage loans. FHA mortgage insurance also encourages lenders to make loans to otherwise credit-worthy borrowers and projects that might not be able to meet conventional underwriting requirements.

Required Documentation For FHA Loan

• A two year history of employment. W-2, 1099 or tax returns


• Credit Scores normally need to be above 620 for conventional financing


• State Driver’s License or ID along with a copy of your Social Security card required


• Debt Ratios should be below 40% housing and 45% total


• Chapter 7 Bankruptcy discharged greater than 24 months or Chapter 13 twelve months with perfect pay history

"

Mortgage Pre-Approval

Mortgage Pre-Approval: "

After getting pre-qualified from a lender, the next step is to get pre-approved for a mortgage loan. Pre-approval takes a borrower one step further toward getting a mortgage loan.

Obtaining pre-approval on a mortgage loan means that a lender has confidently confirmed a borrower’s income, credit score and real estate check - your creditworthiness to repaid the loan plus interest. With pre-approval, the borrower rarely needs to provide any further documentation.

To get a mortgage pre-approval, requires all information to be verified.

Borrower’s Documentation

A home purchase or mortgage refinance requires the borrower to provide documentation that confirms the information provided on the loan application.

Borrower’s Income: Federal tax returns, W-2 forms for the past two years, recent paycheck stubs, name and address of the employer, documents that support additional income (1099 forms and leases), VA and retirement benefits, any overtime bonus.

Borrower’s Assets: A list of bank accounts, statements of the checking and savings account for the previous 2 to 3 months; record of investments, mutual fund statements, real estate licenses and stock certificates, or titles of cars.

Borrower’s Credit History: A lender is required to verify borrower’s credit score with an underwriter. Knowing that you will qualify for certain rates and programs will help your lender get you pre-approved. Gather a list of creditors: credit card bills and proofs of monthly payments towards consumer debts such as car loans, student loans, and other personal loans.

Information on the Home Purchase and Appraisal: Home sales contract showing the purchase price, in case a borrower has selected the house before getting the loan. Some lenders require an unverified, estimated market value of a real estate property.

"

Strategies for Home Buyers

Strategies for Home Buyers: "

Strategies for Home Buyers

Negotiate

In a buyer’s market with a glut of homes, you have negotiation power to command a lower price. A huge inventory of unsold homes means more competition to attract buyers with low prices. Sellers are fixing up their houses and everything to get the deal. You can negotiate for everything in a real estate transaction.

Real Estate Is Local

Examine recent sales prices of locally comparable houses. This will give you a clearer idea of what sellers are willing to accept for their homes in the area and can help you in bidding.

Don’t Wait for Prices to Drop

Don’t wait for the housing bottom. You can’t count on the housing market sinking any lower. It may reach bottom, but I might have missed a good deal waiting.

Home Resale Potential

Buy homes with nearby schools, shopping centers, growing medical district, growing university or other vibrant employment center, your home with have great resale value.

Buy at off-peak sales seasons

Spring and summer are the busy season for housing market. Fall and winter are the slow season. You can take advantage of sellers. With fewer buyers, sellers may be more motivated to take your low offer.

Ask for contingencies

Make your offer contingent on the home appraising at that sum, on passing the buyer’s inspection and on you obtaining financing. Have an option where you can back out without risking your money should things go sour or you fine another home to want instead.

"

First Time Home Buyer Checklist

First Time Home Buyer Checklist: "

Comparison Shop Lenders

Before you begin looking at homes for sale, find out how much you can afford by getting pre-qualified with a lender. Decide how much you can comfortably pay each month.

Pick your lender carefully. A good lender can save you heartaches and money down the road. Interview a few lenders before deciding upon one. Make sure lenders are familiar with first-time home buyer programs.

Don’t allow every lender to run a credit check. Too many credit checks for loan request will damage your credit score

Check the Title Report and CC&Rs.

Have your real estate agent check for liens with a title report, and also review the covenants, conditions and restrictions common in neighborhoods with homeowners associations. These are rules that can affect your decision to buy and may include restrictions on pets.

Get a Home Inspection

A home inspection will find any problems, including ones the seller might not know about. A report will tell you where repairs will need to be fixed. You, the buyer and seller can then negotiate on the repairs. Home inspection usually cost about $150 to $200.

As a home buyer, you should interview several home inspectors, asking about their qualifications and how long they’ve been in business.

Get a Home Warranty

A home warranty (not the same as homeowner’s insurance) covers problems that could cost thousands of dollars to fix, such as replacing a heating unit. The warranty covers appliances, hot water heaters and plumbing, electrical problems, and heating and cooling systems. Home warranties cost about $350 a year.

Understand the Type of Loans and Choose Carefully

Avoid adjustable-rate mortgages, option ARMs, interest-only loans, balloon mortgages. Typically cases, fixed-rate mortgages are the safest route.

If you do decide an adjustable-rate mortgage, understand the advantages and disadvantages. Ask lenders if you have questions. Have more information will help you in making better decision.

Know about risky side of mortgage loans, such as teaser rates, negative amortization and prepayment penalties. Always read all the paperwork.

"

3 Things NOT to do before you buy a home

3 Things NOT to do before you buy a home: "

You are ready to buy a home, or are you? Most likely you will need a mortgage to purchase your next home and you will need to qualify for that mortgage. There are 3 things you should not do before you buy a home.

These three things will make it eaiser for you to qualify for that mortgage and get the best interest rate you can.

1. Don’t Open any New Lines of Credit

When you apply for a mortgage, the mortgage broker will pull your credit report. They are going to look through it in detail to see how you have handled credit in the past. They will also look at your credit report to see your recent activity. If you have opened up new lines of credit, they may view this as a negative since you are looking for sources of credit. They may see this as your inability to pay for your current expenses and you are using credit to pay your expense.

When you are looking to buy a house, hold off opening up any new lines of credit, regardless of the type, until after you own your home.

2. No Major Purchases of Any Kind

If you have a large purchase in the last couple of months, this could hinder your ability to qualify for a mortgage. If they see that you just purchased a car or a boat, the mortgage broker knows that you have a new monthly payment and you don’t have a history of showing that you can make the payments on that new purchase.

It will also impact your debt-to-income ratio, a very important ratio that determines the amount of the mortgage you can qualify for.

3. Don’t Move around Money

The lenders like to see that you have had the money in your bank account for at least a couple of months. If they see new deposits of a large chunk of cash into your bank account, they will ask you where it came from. If it came from someone else, they will want an explanation from you. If a family member is going to give you the down payment for your new home, that’s OK, the lender just wants to know where it came from. Lenders view money that you receive as income different from money you receive as a gift. Don’t try to hide the source of the money, if they don’t trust you they won’t make you the loan. Just let them know where the money came from and show them the paper trail if they ask for it.

The best thing you can do is be consistent in the months leading up to the purchase of your home. Don’t make any new purchases, open any new lines of credit, or move money around just before buying your home. You want to make sure you qualify for the mortgage first since this is the biggest loan you will be asking for.

After you own the home, then you can go out and buy the new car.

Get your Free Report “How to Buy your Dream Home at Rock Bottom Prices” at http://www.Buy-Discount-Homes.com

Article Source: 3 Things NOT to do before you buy a home

"

Ask These Questions Before You Sign Your Next Lease

Ask These Questions Before You Sign Your Next Lease: "

Are you looking for a new apartment or house? Apartment Therapy has some advice about what questions you should ask before putting your name on a new lease. We're featuring this on Consumerist because there is advice about negotiating extra fees and deposits for cats, a crucial topic for our readership.

Here are some of their tips:

• Color the place in your own image. Ask if you can supply your own paint colors. If the apartment hasn't yet been repainted before you sign the lease, you may be able to choose the colors.


• Find out whether pet fees or deposits are negotiable. You may be able to pay a refundable deposit instead of higher rent if you have a pet.


• Who pays for what? Make sure it is entirely clear which utilities you are responsible for, and which the landlord pays for. Same with outdoor maintenance--are you in charge of caring for the lawn and clearing snow, or finding someone else to do it? Is the landlord going to dump lawn chemicals in your yard come spring that you'd prefer to keep your kids or dog away from?


• Alternate payment methods. Can you pay be electronic transfer or PayPal, eliminating the need for paper checks?

What questions are you always sure to ask when signing a new lease?

10 Questions To Ask Before You Sign A Lease [Apartment Therapy] (via Lifehacker)

"

Fannie Mae Takes on the Condo Market

Fannie Mae Takes on the Condo Market: "

Many feel that Fannie Mae made a mess of things with regards to the condominium market last year with its new, tighter restrictions on financing. Perhaps as a back-pedal, and perhaps due to overwhelming pressure, Fannie Mae has now announced that it will make an attempt to boost the sales in the condominium market in Florida. And with the number of condos lining the sun-drenched coast, that is no small order.

David Welch blogs about the newly proposed condo assistance by Fannie Mae.

“It was nearly a year ago that Fannie, Freddie and FHA essentially created the condo mess here in Florida by making financing virtually impossible. In an already difficult market, the tight restrictions on financing caused condo prices to plummet.

The assistance that Fannie is offering now is a special approval process that will be handled by special teams going around the state reviewing existing condominiums. They have dedicated six people to this project (read with a sarcastic tone). With the special approval, condos will be able to qualify for Fannie Mae financing.”

Will this new attempt salvage the sagging condo market? Could it get any worse? What do REALTORS® who deal with condo sales on a daily basis really think of Fannie’s attempt to fix the broken wheel?

Click through now to read David Welch’s blog.

Sign up for a free Featured Blog on Realtor.com today.

"