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Buying a Home in Todays Market

Mortgage Maven — Tue, 02 Nov 2010 13:39:05 +0000

If you have ever been interested in buying your own home, then now is the best time. The current housing market that we are in is considered to be the best buyers market in recent history by many. This is because there are so many people who are trying to sell and far fewer ready and able buyers. That means you will get the best price on a house possible.

There are still not many who have the means or the will to buy a home at this moment. This means that the interest rates being offered by the mortgage lenders are better than ever. They have to try to do whatever they can to try to draw in more lenders after all. Lower interest rates on your mortgage means less money out of your pocket in the long run.

This is not the only part of determining if you are getting a good deal on the home of your dreams. The other main part that you are going to have to think about is how much your mortgage rate is going to go up over time and how that is going to affect the amount that you pay. The easiest way to quickly figure out what these numbers are is to use something known as a mortgage rate calculator.

This tool is something that you can find online use for free. It allows you to plug in the rates that you are getting on your mortgage in order to see how the future of this loan will play out.

Many mortgages increase the amount of interest that you pay over time. This means that as time goes on you are going to owe more and more each month. Naturally, the lenders do not usually proudly display this fact. Therefore you are going to have to carefully look over the terms and conditions that you are getting on your mortgage in order to plug in the necessary numbers into this calculator. Just plug those numbers in and then it will spit out how much you will be paying for the lifetime of the loan.

All of this is a nice way to find out if you are getting a great deal on your mortgage.

Single Mother Home Loan Resources

Mortgage Maven — Mon, 01 Nov 2010 14:03:03 +0000

When you are wanting to buy a home, it can be a challenge to most couples, let alone a single mom. In order to qualify for the loan, a single mother has to depend strictly upon her own income, not the income of two people. Of course you could get a co-signer, but not many people are wanting to cosign on a mortgage, let alone smaller loans also.

However, there are some options for home loans for single moms that can help you without breaking your budget. Traditionally, most single moms can’t afford the restrictive qualifications for a conventional mortgage, so one place you can look is at an FHA loan. The FHA loans help those with lower incomes and lower credit scores apply and receive home loans.

The FHA loans are a great way to get into your own home rather inexpensively, with around a 3% down requirement. You can even ask the seller to pay for the closing costs and down payment if necessary, but usually this can raise your sales price. You need to be careful to make sure that it doesn’t affect your appraisal value or put your monthly payment out of range when you do this.

Another great option for the single mom is with Fannie Mae. With this program, Fannie Mae offers foreclosures through local realtors and also they have even better terms available than the FHA programs. The main type of program is called the HomePath program and you can even borrow the 3% down that they ask for. Another great aspect of this program is that there is usually no appraisal fee or PMI that applies to the loan.

Sometimes with the HomePath program, you can even have part, if not all of your closing costs paid for by the lender. The one downside potentially is that since these are foreclosures, the property might require some work. Sometimes it can be as simple as cleaning and new paint, or the home might need more major work. There are several other places and factors that can affect single mother loans for homes that you should know about. Knowing all you can before you buy can, and often will, save you money in the long run.

Home Buyers Guide In Today’s Market.

Mortgage Maven — Thu, 28 Oct 2010 12:22:03 +0000

As property prices continued to slide, many for some homeowners are looking to purchase their first property. But how to you find a home with great value? And what if property prices keep falling? Well, here are some tips on getting the best value on your first home, as well as hedging against falling prices home prices.

Finances

Even though house prices are currently low, home buyers will be wise to check their finances before attaching to purchase a property. Mortgage rates are at record lows, but lenders are not approving mortgages as enthusiastically as they should. Expect to jump through many difficult hoops before being able to obtain financing. Home buyers should be able to put down at least 35% of the purchase price to obtain financing with reasonable terms. If possible, get your mortgage fully underwritten before looking for a property. (This is not the same a pre-approved)

Choosing properties

Properties on the market right now, fall into three categories.

A pristine remodeled home at above market value
An average home needing minor repairs at market value
A distressed home needing major repairs at below market value

At first look, the pristine remodeled home looks like a good deal. After all, it is new, clean, beautiful and move-in ready. However, this is not very good choice in terms of value. As soon as you signing the mortgage documents, you will be over leveraged and it will be many years before the home prices will bounce back again.
The average home at market value is a good choice. It’s less likely to be effected by decreasing prices than the over priced remodeled home, and repairs are usually minor. But current economic climate suggest that home prices will continue to fall for some time. So if you purchase the average home at market value you may soon find it to be upside down on your mortgage too. We do not recommend this unless you’re absolutely positive you will be remaining in the home for at least five or more years.
The distressed home below market value is the best choice to maximize the homeowners buying power. Most distressed homes require significant amount of repairs, but do not let this discourage you. The seller will most likely be susceptible to a much lower purchase price if the property is distressed. It is recommended that homebuyers hired an experienced inspector to thoroughly examine the property to maximize your leverage in negotiations. As you’ll be spending a lot of time and effort on this property, make sure you find your distressed home in the right area. One of the good things about economic downturns is that home building activities decrease, making contractors and materials significantly less expensive. Also, there is an added benefit of having your new home remodeled to your exact tastes and specification. Remember to plan in advance; including the time you will not be able to occupy the property during construction.

How to find distress properties
Have your realtor look for properties classified as “Short Sales” or “REOs”.These are properties that are in the process of, or already gone through the foreclosure process. Another good source is to find real estate investors know as “wholesalers”. “Wholesalers” provide distress homes at low prices to construction companies to remodel. There will be happy to sell you a home in the area you specify, as long as the finances of solid. You can find these wholesalers by looking for bandit signs or printed ads with word such as “We buy houses.”

Tips For Buying Land That is Cheap

Mortgage Maven — Thu, 14 Oct 2010 04:01:03 +0000

Today I will be sharing some tips with you for buying land that is cheap. Because the U.S. is in a major financial recession and has been for the last couple of years, the real estate market is truly suffering. There are so many more sellers than there are buyers which makes it good for buyers because sellers must compete aggressively if they want to get your business. This is the essence of a buyer’s market and it forces real estate prices way down. Oftentimes it forces the prices down far below fair market value.

If you are actually in the market for purchasing cheap land, you have the advantage right out of the gate because of the strong buyer’s market that we are in. You can turn the tables in your favor even more if you practice your negotiating skills. Being a good negotiator isn’t something that comes natural. Very few people are naturally good at negotiating. Taking the extra time to learn a few negotiating tips will help you when it comes time to hash out the final deal. A word of caution is to not fall in love with a particular piece of property during a market like this. The reason I say this is that there are so many choices for you that falling in love with a piece of property may influence your decision making process when it comes time to negotiate. Remember, you’re trying to find cheap land and there are plenty of good deals out there. It doesn’t make any sense to buy property that you can’t get at the right price.

It’s not difficult finding land during a buyer’s market like this at great prices. What is difficult is learning to be a great negotiator. You can get good prices during a buyer’s market but you can get amazing prices if you learn to be a better negotiator. Being a good negotiator means knowing exactly what your maximum price is before you ever step up to the negotiating table. Never let a seller convince you to raise your maximum price during the negotiating phase. There are so many great opportunities available right now that there is absolutely no reason to settle on a deal that isn’t a deal of a lifetime. You may not find it on the first or second property that you look at but they are definitely out there. If you’re willing to put in the time and to look for them, you will find them.

Have a Rancho Cucamonga Mortgage Lender Land You a Home

Mortgage Maven — Thu, 30 Sep 2010 16:23:26 +0000

Mortgage is one of the best ways wherein you can own a new house without having the need to actually pay the whole amount of the property you want. The bank will initially finance the payment of your house, so while you are paying it to the company, they will hold an authority to your property though you are already allowed to use it. If in case the client failed to pay the amortization, they can pull out and sell the property and use the money to clear the remaining debt.

If you are planning to move to another place, you can try to look for your dream house on one of the fastest growing cities in San Bernardino County, the Rancho Cucamonga. Look for Rancho Cucamonga mortgage lender with low rates that can fit your budget and you are well on your way to owning your property. Rates are constantly changing almost everyday, so it is good to have somebody who knows the best deal regarding with the interest rates. However, for almost 30 years, the current mortgage rates are on its lowest, so why not take advantage of it?

Different lenders can help you decide in purchasing your house and dealing with investors. But before applying into one of Rancho Cucamonga mortgage lender, you should be knowledgeable on the current rates and how to deal with lenders first. You should also have a good credit report and credit score. These two can greatly affect the approval of your loan. A credit score above 600 can be good, but ideally it should be higher for a faster approval of your loan. Mortgage rates are very important to consider since you will have to pay for it for a very long time. These vary depending on the principal amount of the property and the interest rate. Interest rates are the percentage of the actual money that you borrowed from the lending company.
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20 Percent down: Not for New Home Buyers

Mortgage Maven — Thu, 05 Aug 2010 05:27:03 +0000

Mortgage experts for many years have advised and advertised the essential need to place 20 percent down on a new home purchase. This has been so frequently drilled into most people’s minds that the 20 percent rule is now simply accepted. However, new arguments exist that deter from this strategy beyond future avoidance of damaging perosnal credit and the need for future bad credit loans. The following are some reasons why you may not agree with the 20 percent rule either.

* Finding a home that costs less than $200,000 is difficult at best. Even at this unusual price, 20 percent down requires you to have a minimum of $40,000 on hand. This can be an arduous task, and for many, it is simply impossible. The only other alternative for such a significant amount is to borrow it from a retirement fund or other savings vehicle.

* Saving so much money likely will require many years. Throughout that time, your dream home may sell to another buyer or increase in price.

* The money devoted to a huge down payment is probably better served in another manner. Whether this means developing an emergency fund, saving for retirement or conducting crucial repairs to an existing home, those are more valuable alternatives. Saving is most crucial during a person’s early years, and putting money aside for a down payment means other life areas are being neglected.

* The time required for such a down payment may be spent on rent instead of applying it toward home equity. This can further reduce your financial power by negating your tax return deductions through a lack of mortgage interest.

Do Not Become Burdened by the Cost of a Dream Home

A home mortgage can be akin to tying your hands together, but saving for such may be even more detrimental. You must ensure that you do not buy a home that you cannot comfortably afford. Life becomes quite sober when you cannot pay for a small vacation or afford to fix an inoperable furnace.

In short, many reasons exist why you should not provide a 20 percent payment when purchasing a new home. Other investment options may be a smarter choice, and you may save yourself a lot of time in getting into your dream home more quickly. While going into a home without a down payment is risky, not investing your money wisely is also dangerous. Determine how to combine your assets so they work optimally for you. This will help you realize your dream home and other financial goals.

Buying Short, Buying a Foreclosure – Is it worth it?

Mortgage Maven — Fri, 23 Jul 2010 17:23:05 +0000

Are you planning to go for a short sale or a foreclosed property? Have you looked into its benefits and difficulties? Is it really worth your time and money? Is it a good investment? You will get many more questions after listening to the amazing deals on such properties. Local Realtors confirm your fears saying that it is not an easy task. You will need money for purchasing Orlando investment property, for example, but that is alone not enough. You will need a lot of time, smartness, patience and expert advice to go through a successful investment in such property. There are times when this purchase will have great values for the buyer, since there will be less focus on inspection issues but the process tends to be mostly long and frustrating. This will certainly not suit an impatient buyer or those looking for quick occupancy.

The buyer will require lots of money for property investment in Orlando FL (using the above situation) since he/she will also need to fix things up and get it ready for renting or re-listing. Consulting an experienced lawyer to manage such transactions and a licensed real estate agent will help a lot. At times, these transactions can be endless owing to difficulty in closings. Since the bank needs to approve, this process can last for months but later get rejected outright. The lender thus may not own the property, since it is sold to the purchaser and entity has to weigh in.

Bank-owned foreclosures may proceed quickly when the banks need to dispose the property off but others pose difficulty. It is the duty of the agent and the lawyer to deal with such silences and communicate openly with the purchaser if they want the transaction to proceed and end successfully. Thus it is recommended to approach an expert who can help in purchasing foreclosures or other investment opportunities.

Buy to Let Property for a Steady Income

Mortgage Maven — Fri, 23 Jul 2010 13:12:03 +0000

In the current market scenario, investing in property might be a tricky deal which is why you must be careful when you are looking for buy to let property. However, if you are prepared for the initial capital investment, you can turn the proposition into a profitable one. First, you must find yourself a good property in a healthy neighborhood, where there is a fair chance of real estate development in the coming years, like numerous Charlotte investment property areas. You might need to upstage the house a bit before you can find the tenants to your liking and rent to them on your terms. But this will be at an extra cost, so you must be sure such an initial upfront cost is in your budget.

While buying a property for buy to let purposes, you must keep your potential target tenant in mind before you look for the right options. You should also look at a lot of options to find out which is the safest bet, as it must be a house that is attractive and will draw tenants as that is your primary purpose. One example is to take a slightly more expensive yet popular neighborhood in Charlotte. It might cost more for the property, but you might offset that added cost by having more reliable tenants and those willing to pay a premium for the area.

Currently, you are walking in with the assumption that the prices might fall or remain the same for a few years, thus not earning you much profit either way. You must negotiate and for that proper training is required to understand the real estate market. Unless you have a real estate agent who will deal on your behalf, you must certainly be well versed with the entire situation to get the house at a price that is comfortable for you and whose mortgage payments you can manage, even when the property doesn’t have tenants for a couple of months.

Having too much greed when you have a tenant or being over ambitious doesn’t work well when becoming a landlord. You must know the value of your property and hence decide what would be an attractive rent. Too less will mean you stand to lose, while too high would indirectly cause a loss too as tenants wouldn’t turn up instantly. So it has to be the right balance. You have to find tenants who will maintain the house well, so that you don’t have to spend a lot for the maintenance of the house. Secondly, the tenants must be consistent in their monthly payments so that you don’t have issues with the mortgage either. Lastly, you must find tenants who will adhere to your terms and conditions which will be of real help and reduce risk when you own property.

Five Tips to Buying a Home

Mortgage Maven — Wed, 26 May 2010 10:41:06 +0000

Are you thinking about buying a home but not quote sure it is the right time? There are many people in the same boat. They want to buy a home but are a bit afraid that home prices will continue to fall. For this reason, most buyers will not purchase unless they feel like they got a deal. Here are five tips to help you locate a good value:

1) Be Realistic

The real estate market is fairly efficient. All information about the market is easily available so most properties sell for close to what they are worth. Sure, as a Realtor I see some places sell for far less or more than true market value but most properties sell for about the right price. Every home buyer wants to find that fantastic steal. However, chances are that if the home you like is worth around $400,000 based on similar homes that have recently sold then you will probably have to pay around $400,000 give or take 5%.

2) Find a Good Realtor

Hiring a good Realtor won’t cost you any more than hiring a bad one. In fact, a bad one might be more expensive. Even though they might represent you, real estate agents are compensated by the seller. This may be your largest transaction ever so hire someone to help you. A Realtor can help educate you on the market by sending you what is for sale, what has sold, and homes that failed to sell.

3) Learn the market

If you have no knowledge of the real estate market how will you determine a good value? I could show you a home well market value but if you don’t know what things are selling for then you won’t recognize the value. Have your real estate agent send you homes that have recently sold in the areas that you like. You stand to get a better chance to find a deal if you are an educated buyer.

4) Preparation is crucial

Don’t wait until after you find a great house to get financing arranged. Make sure everything is prepared prior to looking for a home. Some buyers find a great opportunity but lose it because they just are not ready. You may run into competition with other buyers. Prepared buyers will win. If you are the home seller would you take an offer from Buyer 1 who is pre-approved for a mortgage and willing to close in 3 weeks or Buyer 2 who has not arranged financing and can’t close for 90 days? Lending guidelines have changed over the last few years so get that out of way before looking at home. You may be looking at $300,000 homes when you can really only afford $200,000 homes. Know this ahead of time.

5) Don’t Procrastinate

If a good deal crosses your lap and you are prepared then act on it swiftly. Good deals can be snapped up quickly. Do not let paralysis of analysis get the better of you. If you have market knowledge, are represented by a good Realtor, are prepared and have done your homework then make an offer.

Follow these five tips and you will be stand a great chance of finding a good home value. People who find great values became experts, accepted a dose of reality, hired good help, were prepared and then acted swiftly.

Marc Rasmussen sells Sarasota FL homes for sale and has a Sarasota mortgage blog.

Buying A Home In Missouri

Mortgage Maven — Thu, 20 May 2010 20:22:27 +0000

Buying a home in the post real estate crash environment has been a shock to most people. Lending standards have returned to historical trends in which lenders are looking for large down payments and plenty of reserves. Debt to income ratios must be well within the safe zone and income must be well documented. None of these requirements are extreme; in fact, these requirements have been the norm for decades. They only feel difficult to comply with because in recent years borrowers have been accustomed to loose lending practices.

Home buyers looking to make purchases in the state of Missouri are no different from anywhere else in the country. Despite the fact that Missouri is by no means a prime example of real estate gone awry it is a market that is relatively an average for the country at large. Real estate prices are a bit lower than the national average, at least in many regions of the state, but generally buying a home in Missouri should be standard when compared to the requirements of real estate transactions across the country.

The first thing you need to do to start the process of buying a home is to find a good real estate agent or broker with a localized Missouri real estate license. Above all a salesperson cannot broker out or sale homes in the state without a license native to the state. You also need to make sure your finances are in order before you start the process.

Make sure your down payment is in cash sitting in your account. Make sure that the cash is aged, meaning, make sure it has been sitting in the account untouched for months before applying. Many financing deals fall apart for simple reasons like this. Also make sure to pay off any debts you can a few months ahead of the application. This removes the debts from your credit report and lowers your DTI. Also make sure you have thorough income documentation in place before the application as this is very heavily weighed in the underwriting process.

In selecting the home you choose to buy make sure to not stretch your budget at all. The more wiggle room you have the more likely your purchase transaction will play out without problems. If you find it difficult to find something lower in your budget try searching for FSBO MLS listings. Properties which fall under this category will pay less in fees as the sellers are not using an agent. They may be more willing to split the cost savings with you.

Remember; each real estate market is unique. If you are very familiar with the state of Missouri and especially the local market you may be able to do more of the home buying process yourself. If on the other hand you are new to the home buying process and unfamiliar with the Missouri real estate market then make sure to have a professional by your side guiding you through the process.