What To Expect In Closing Costs On A Home Purchase
October 22, 2007
Many are taking advantage of this year’s low mortgage rates to purchase a home. Pent up with excitement, many families, who have scrimped and saved for a down-payment, jump for joy when the mortgage lender finally approves their application. But, they should realize that there’s a whole new set of expenses that must be covered before actually closing on the sale.
New homeowners are often taken aback by up-front closing costs such as mortgage and title insurance, attorney fees, recording fees and loan points, which can run into the thousands of dollars. But there is no need to be afraid of these charges. With a little background on their purpose and shrewd financial foresight, closings can be a breeze.
A lender’s charge for processing the loan can be determined at the beginning of your buying process. Referred to as "points," these charges are expressed as a percentage of the total loan. For instance, three points are equal to 3 percent of the borrowed amount. "Points" can also become a tool for negotiation with the lender and seller. In a buyer’s market, home sellers will often agree to pay mortgage fees in order to close a deal.
Conditions Are Right For Buying The Higher Priced Home You?Ve Always Wanted
October 22, 2007
Higher interest rates and home prices in the past have kept home owners from purchasing larger homes. The current real estate market conditions, however, are encouraging for many home owners who want to "buy up" to higher priced homes with more to offer.
If you are considering trading up for a larger and more expensive home, conditions for doing so couldn’t get much better. Interest rates are the lowest they’ve been in two decades, and home prices in many regions are the most affordable they’ve been in years.
You should consider a few factors before reaching a decision to trade up:
- Can you afford higher mortgage payments and property taxes?
- Is your credit record solid enough to qualify for the probable higher monthly mortgage payments?
- Do you plan to stay in your new home long enough to recoup your investment?
Obviously, you’ll need to sell your current home before getting serious about trading up to a new one. A healthy real estate market indicates that you’ll have little trouble selling your existing home. The national Association of Realtors reported in August that sales of existing single-family homes are rising steadily, especially among first-time buyers. Affordable home prices and low interest rates could make the starter home you purchase several years ago particularly attractive.
How to Prepare Yourself for Owning a Dual Purpose Second Home
October 21, 2007
If you are thinking about buying a second home, you are not alone. A 1995 survey by the American Resort Development Association found that 60 percent of households surveyed feel they have a likely chance of purchasing a recreational property in the next ten years, a figure that rose 30% from the survey in 1990. The average age for the majority of vacation home buyers ranges from 40-50 years old. Qualifying as the baby boomer generation, this group of second home buyers consists of 80.5 million people out of the U.S. population of more than 260 million. Demand for vacation homes is rising as a result of consumers’ increasing desire to capitalize on low interest rates, low unemployment rates and a strong real estate market offering many viable second home options.
When purchasing a second home, many baby boomers seek properties that offer access to recreational areas as well as amenities ideal for retirement living. Finding a fully functional dual purpose second home requires meeting a number of physical and emotional characteristics. A trained real estate professional can help you identify your short and long term needs as well as a home that provides the qualities you require.
Finding A Capable Agent To Meet Your Real Estate Needs
October 20, 2007
Whether you’re a first-time buyer, selling your current home or relocating to a different part of the country, the support of a qualified, knowledgeable real estate agent can alleviate many of your concerns and ensure a smooth transaction. A professional agent can market your present residence, help you locate the home of your dreams and assist in making your transfer to an unfamiliar area easier.
To find a trained sales associate or broker, you may need to look no further than your own neighborhood or home town. If a well-established brokerage is involved in many listings and sale, this is a god sign. Speak with some of the agent’s past customers about the quality and integrity of service and performance. Successful real estate agents rely heavily on customer referrals and will therefore strive to provide the very best in customer service and satisfaction.
Set up appointments to "interview" agents and brokers much like an employer world interview a prospective employee. Inquire about their training, marketing programs and specific service policies. Also determine how many years of experience they have, the number of listings they have had, and the number of homes they have sold within the past few years. More importantly, find out how well they know the area. Ask for references, and check them out.
What Homeowners Should Know to Stop Foreclosure- Speaking Your Lenders Language
October 19, 2007
Financial literacy is the means of empowering consumers to make informed financial decisions through exposure to accurate and timely information. In no other area is the void of accurate information more evident that in the area of foreclosure.
The national foreclosure rate is at the highest level since the Great Depression. Families fall behind on the mortgage payments because of illness, job layoffs, business failure, divorce and marital problems, and bad money management decisions. Foreclosure and the loss of the home is the usual result. Foreclosure is financially and psychologically devastating to the stability of the household.
This article provides information to expose homeowners to the financial principles of loss mitigation. Loss mitigation is essential to asset protection because it provides the borrower with information necessary to make good decisions. Learning the programs or “tools” available as an alternative to foreclosure is the key to preserving home ownership.
For example, If I told you that the mortgage servicing industry reports average loss of $20,000 to $30,000 per foreclosure, then you may be inclined to believe that foreclosure is not an efficient and cost effective means of collections for the lender. According to Vic Draper, President of Universal Default Services, “33% of all mortgage defaults that go to REO never made contact with the borrower!” The lender does not want your home and will work out a financial alternative if you speak their language.
Dont Overpay for a House, Even in Todays Market
October 18, 2007
If there’s one thing American investors love, it’s an over-inflated market. Which is why they keep buying houses and new ones keep coming onto the market. According to the latest data, housing starts rose an annualized 3.4% in September, matching a 17-year high. Whoo-ha! Go, baby go.
I wonder if the people buying these houses, for ever-rising prices, are the same people who couldn’t get enough Amazon.com stock at $100 or Lucent shares for $75? Having been burned in the stock market, I guess they decided to re-invest what was left in their homes. Are we in a housing bubble? I don’t know, but I suspect that we are, at least in some areas of the country.
Don’t misunderstand me, now. I own a home, and I think home ownership is one of the great freedoms we enjoy in this country. I get nervous about the people who are pulling all the equity out of their homes with new mortgages. I suspect that most of these people are spending the equity, not investing it. What they’re left with is a larger mortgage, and a bunch of worthless Chinese made goods.
Free Tips That Will Dramatically Increase the Selling Value Of Your House (Part 1)
October 17, 2007
Did you know that it’s a proven fact that a properly maintained home sells substantially higher then a home that is dirty, depressed looking and clearly not maintained very well? When it comes to selling your house the statement "first impressions are the selling impression" couldn’t be any more accurate. This article will highlight some quick tips that will increase the amount of money you can ask for you home when you’re ready to sell it.
These tips won’t consist of insisting that you perform a major renovation or complete overhaul of your home. Instead they will focus on what you can do outside around your house in order to increase your property value. These quick fixes can include things such as cleaning, painting, refinishing, and other such efforts. These are the projects that don’t require all that much capital, and yet they make an immeasurable improvement to the overall look of your home.
Remembering what we said earlier about first impression prompts my first and number 1 tip. Always take the necessary time to tidy up around the outside of your home. This would include all debris, refuse or garbage waste as well as tools, children’s toys and yard care tools such as lawnmowers and weed eaters.
Termite and Moisture Damage Not Reported
October 17, 2007
I have done so many appraisals where I saw obvious damage that was not reported by the other inspectors. The first couple of times I thought it was just carelessness. I came to realize it was the same agents who had found what I call pocket contractors or repeat business. Most buyers are not aware of this problem but believe me it is a big one.
I remember one very nice fairly new house and I saw what appeared to be moisture damage as soon as I pulled up to the curb. It was on the first and second floor window frames. Also there was a paladium window that leaked on the second floor of the foyer. When I got done with the appraisal, I made the report “subject to” the specific itemized repairs and termite and moisture inspection. The loan processor immediately called me and said they had a clear letter from the termite and moisture inspection and nothing was mentioned in the home inspection with regards to those problems. I didn’t change anything. A few days later the mortgage company called and said the repairs had been completed and to do a final inspection. I returned to the house. The first thing I noticed was the second floor fascia and sills looked exactly the same. Everything had been done on the first floor. We got the huge heavy ladder out which infuriated me, as I don’t like heights and that someone would try to fool me by doing the obvious, clearly visible repairs.
How to Research and Purchase a Good Investment Property
October 16, 2007
How much do you really know about investment property? Accurate research and professional expertise applied to the purchase of an investment property builds a solid foundation for financial success. You may want to work with a REALTOR who can help to identify the great opportunities in investment properties in the area of your choice. Or, you may choose to do the work on your own. A REALTOR can provide the inside line on properties with potential in the geographic area where you are looking for property. If you do choose to work with a REALTOR, you will save time, and you may have more choices and opportunities.
Research the Property’s Past and Present
Some essential information must be obtained about the property’s past. For example, do you know the history of the property, or even how old it is? What sort of upgrades have been made to the home? Is the roof waterproof, and is the plumbing and electrical in working order?
What’s the Neighborhood Like?
10 Tips for Investing in Distressed or Foreclosed Properties
October 15, 2007
1. Search on the world wide web for distressed or foreclosed properties as a starting point. Use a professional REALTOR to identify great foreclosure deals for you. You may be successful at searching the web on your own, but keep in mind some of the information is outdated, some may be incorrect, and some of the available properties are not even listed. A REALTOR subscribes to updated MLS listings and can offer you the most current information available.
2. If you search yourself for distressed properties and purchase from the selling agent, you are paying a commission to someone with a vested interest. Obtain objectivity in the sale by working with your own REALTOR. You won’t pay any more. Technically, everyone works for the seller, since they pay the commission.
3. With distressed or foreclosed properties, time is of the essence. Purchasers must close on the date specified by the agency, and cannot close after this without penalties of $25-200 per day.
