The Bay Area is one of the greatest places in the world to call home. There are many things to do, places to see, a wide range of cultures and many job and business opportunities. There is also a great demand for housing with only 15% of the population being able to afford homes. With the most recent events that have taken place in the mortgage finance sector, It has become much more difficult to enter the market place for first time buyers. The days of anyone being able to qualify for a loan are long gone and the mortgage fraud cases are stacking up. There have been more than 120 lenders that have closed their doors in the last two weeks and more are on the horizon. Why is this happening? What does this mean?
The investors who buy loans in the secondary market are reluctant to purchase these loans because of the risks involved. Interest rates for jumbo loans ( loans over $417,000 ) have significantly gone up making mortgage money much less affordable. Investors are weary to purchase loans that don’t fit into Fannie Mae or Freddy Mac standards because of the amount of foreclosures stemming from bad loans to begin with. To sum it all up: Investors are asking for higher interest, more documentation, higher credit scores and many are not doing stated income at all. This means that there will be less qualified buyers and a massive amount of inventory on the market. The good news is that now is a great time to buy and it’s looking like it will stay that way for a while. The Bay Area has historically been a stable investment over time and the market will rebound in time.
There are still some ways to get the right financing. The best things to do are to have a down payment, pay off as much debt as possible and find new ways to increase income. All of these things will prove favorable in the eyes of the underwriters and make it easier to get approved for a loan. Make sure who you are working with and that the lender has the ability to fund and close the loan. This has happened many times recently with lenders not being able to fund after all the documents have been signed. There are also many ways to clean up credit issues and boost credit scores up to where they need to be by doing some very simple things. Most of us don’t look at our credit all the time and have no idea what it says on the report. It is probably a good idea to pay attention to credit reports once in a while to avoid any potential surprises. Lenders are also doing away with alternate credit and so this is a very important step in the buying process. Contact us for more tips about purchasing a home or qualifying for a loan.
Article Source: http://EzineArticles.com/?expert=Matthew_Larsen
Thursday, August 30, 2007
Spice Up Your Stay In Costa Blanca Property
If you are planning to buy Costa Blanca property to stay there, then be prepared for a wonderful place that beckons millions of travellers each year. Every Costa Blanca property is like hot piece of cake. This is not only because Costa Blanca properties are very luxurious, but also because the area is very beautiful and has a lot to offer.
Costa Blanca belongs to the Province of Alicante in Spain. It is spread over two hundred kilometres of coastline and extends from the town of Denia in the north to Torrevieja in the south. It is one of the most famous tourist destinations of earth because of its scenic beauty and architecture.
The Weather of Costa Blanca
World Health Organisation has labelled the climate of Costa Blanca as one of the healthiest climates in the world. The weather of this region is dry as there is little rainfall and a good warm sunshine can be expected for more than three hundred days in a year.
The Festivities of Costa Blanca
Costa Blanca, like every other region of Spain, has a number of fiestas and festivals lined up for the year. If you live here, life is never without celebrations and jubilations. The most important Catholic tradition of the year is Easter Week. Apart from that there is Moors and Christians, San Juan Bonfires, San Vicente Ferrer, Fire festival, May fiesta, Patron Saints' Day and many small and big ones that are celebrated here.
Entertainment does not end with fiestas. There are many other things that you can enjoy here if you stay in a Costa Blanca property. You can enjoy sports activities like bull fighting, golf, etc. You can take part in the water sports or simply stroll in the golden sands of the coast.
You can enjoy yourself thoroughly when you are here. So book your Costa Blanca property today and enjoy a life of fun and frolic.
About The Author:
Brittney Jackeline is a well known professional writer. She has won appreciation especially for good writing about Spanish Real Estate topic like properties in Spain
Costa Blanca belongs to the Province of Alicante in Spain. It is spread over two hundred kilometres of coastline and extends from the town of Denia in the north to Torrevieja in the south. It is one of the most famous tourist destinations of earth because of its scenic beauty and architecture.
The Weather of Costa Blanca
World Health Organisation has labelled the climate of Costa Blanca as one of the healthiest climates in the world. The weather of this region is dry as there is little rainfall and a good warm sunshine can be expected for more than three hundred days in a year.
The Festivities of Costa Blanca
Costa Blanca, like every other region of Spain, has a number of fiestas and festivals lined up for the year. If you live here, life is never without celebrations and jubilations. The most important Catholic tradition of the year is Easter Week. Apart from that there is Moors and Christians, San Juan Bonfires, San Vicente Ferrer, Fire festival, May fiesta, Patron Saints' Day and many small and big ones that are celebrated here.
Entertainment does not end with fiestas. There are many other things that you can enjoy here if you stay in a Costa Blanca property. You can enjoy sports activities like bull fighting, golf, etc. You can take part in the water sports or simply stroll in the golden sands of the coast.
You can enjoy yourself thoroughly when you are here. So book your Costa Blanca property today and enjoy a life of fun and frolic.
About The Author:
Brittney Jackeline is a well known professional writer. She has won appreciation especially for good writing about Spanish Real Estate topic like properties in Spain
House Hunters Question 1, How Does The Home Buyer End Up Finding And Selecting An Agent?
With all of the recent focus on real estate, one show that has stood out is House Hunters, where Suzzane Whang takes you behind the scenes of the process of a buyer or a couple buying a townhouse who are attended around to 3 homes by a real estate professional. After seeing the three homes and a strategically placed commercial break the buyer comes to the real estate professional office or works with the agent on the hood of the agents car to fill out a one page contract form.
After another strategically placed commercial, viola, the buyer has the home and we get the opportunity to drop in on them 1-2 months after they have moved into the property they selected. All of this half hour, made for TV house hunting got me to thinking, How does House Hunters compare to the real home search and buying process?
Over the course of the next few days I will be reviewing and comparing the House Hunter process with the Actual home buying process while showing some of the glaring and subtle differences along with providing some food for thought for potential home buyers.
Part One of a Nine Part Series
House Hunters Question #1, How does the home buyer end up finding and selecting an agent?
When we are introduced to the home buyer in the show, they are usually describing how there current living conditions are not working out and what they don't like about their current home. The ideal, overused "plot" is the husband or wife that has a hobby or painting or writing or music and how they are currently forced to use part of the living room as there studio.
Next scene shows the family with the real estate section of the newspaper spread out in front of them or they are sitting in front of an internet browser randomly selecting properties. While both of these activities do occur, the show eliminates some of the steps that will ultimately end up saving the home buyer lots of time and stress.
How it works in the real world, removed from TV Land. In todays internet age, it have been reported in multiple surveys that anywhere from 70-80% of potential home buyers begin their home search online. The next step that they take is selecting an agent to actually show them homes. This brings up two very important factors that home buyers need to consider.
1.) Is the agent that they are contacting for a particular proprty already under contract to represent the best interest of the Seller of the home?
2.) Is the agent that they are contacting familiar with the home or area that they are interested in and are they an active agent or are they not very busy and therefore they are just sitting around waiting and hoping that a buyer will call in on an office listing. You see, the average agent in the US sells 2-3 homes per year. That's right, 2-3. If you take the total number of homes sold divided by the total number of licensed agents, you get a number between 2 and 3. This means that alot of agent are not selling any homes. What does that mean to you? You might end up getting stuck with an agent that will be doing on the job training at your time and expense, vs working with a top producing real estate team.
Next, in HGTV House Hunters, we never see the real estate agent that has been selected taking the time to meet with the home buyers in the the agents office to determine exactly what the home buyers are looking for and taking the time to explain the whole buying process. It is assumed that the agent knows what the buyers are looking for, but my experience has shown that the buyers translate this into a myth that every agent will just run out to the property and show them the property without taking the time to explain the entire process and finding out exactly what they are looking for. This meeting also serves as an interview of the agent by the buyers. This is glossed over because all of the step that are required are not shown, therefore the role of the agent is minimized.
How it really works: Most prospective home buyers take the time to consult with an agent or agents. The agent will take the time to question the home buyers to find out exactly what they are looking for, explain to them the entire home buying process and provide for the home buyers the required local, state, and federal disclosures, especially in the area of Megan's Law and the like. While glossed over in the show, this step is vital to setting up a good foundation for the rest of the Northern Virginia home buying process.
The Earl of Real Estate - Robert Earl is a Top Producing Real Estate Agent & Real Estate Coach working with Northern Virginia Condos, Real Estate & Homes for Sale Marketplace. Robert has compiled a list of The 77 Most Expensive Luxury Single Family Homes for Sale in Northern Virginia as a free service to Northern Virginia Real Estate Buyers & Seller.
Article Source: http://EzineArticles.com/?expert=R._Earl
After another strategically placed commercial, viola, the buyer has the home and we get the opportunity to drop in on them 1-2 months after they have moved into the property they selected. All of this half hour, made for TV house hunting got me to thinking, How does House Hunters compare to the real home search and buying process?
Over the course of the next few days I will be reviewing and comparing the House Hunter process with the Actual home buying process while showing some of the glaring and subtle differences along with providing some food for thought for potential home buyers.
Part One of a Nine Part Series
House Hunters Question #1, How does the home buyer end up finding and selecting an agent?
When we are introduced to the home buyer in the show, they are usually describing how there current living conditions are not working out and what they don't like about their current home. The ideal, overused "plot" is the husband or wife that has a hobby or painting or writing or music and how they are currently forced to use part of the living room as there studio.
Next scene shows the family with the real estate section of the newspaper spread out in front of them or they are sitting in front of an internet browser randomly selecting properties. While both of these activities do occur, the show eliminates some of the steps that will ultimately end up saving the home buyer lots of time and stress.
How it works in the real world, removed from TV Land. In todays internet age, it have been reported in multiple surveys that anywhere from 70-80% of potential home buyers begin their home search online. The next step that they take is selecting an agent to actually show them homes. This brings up two very important factors that home buyers need to consider.
1.) Is the agent that they are contacting for a particular proprty already under contract to represent the best interest of the Seller of the home?
2.) Is the agent that they are contacting familiar with the home or area that they are interested in and are they an active agent or are they not very busy and therefore they are just sitting around waiting and hoping that a buyer will call in on an office listing. You see, the average agent in the US sells 2-3 homes per year. That's right, 2-3. If you take the total number of homes sold divided by the total number of licensed agents, you get a number between 2 and 3. This means that alot of agent are not selling any homes. What does that mean to you? You might end up getting stuck with an agent that will be doing on the job training at your time and expense, vs working with a top producing real estate team.
Next, in HGTV House Hunters, we never see the real estate agent that has been selected taking the time to meet with the home buyers in the the agents office to determine exactly what the home buyers are looking for and taking the time to explain the whole buying process. It is assumed that the agent knows what the buyers are looking for, but my experience has shown that the buyers translate this into a myth that every agent will just run out to the property and show them the property without taking the time to explain the entire process and finding out exactly what they are looking for. This meeting also serves as an interview of the agent by the buyers. This is glossed over because all of the step that are required are not shown, therefore the role of the agent is minimized.
How it really works: Most prospective home buyers take the time to consult with an agent or agents. The agent will take the time to question the home buyers to find out exactly what they are looking for, explain to them the entire home buying process and provide for the home buyers the required local, state, and federal disclosures, especially in the area of Megan's Law and the like. While glossed over in the show, this step is vital to setting up a good foundation for the rest of the Northern Virginia home buying process.
The Earl of Real Estate - Robert Earl is a Top Producing Real Estate Agent & Real Estate Coach working with Northern Virginia Condos, Real Estate & Homes for Sale Marketplace. Robert has compiled a list of The 77 Most Expensive Luxury Single Family Homes for Sale in Northern Virginia as a free service to Northern Virginia Real Estate Buyers & Seller.
Article Source: http://EzineArticles.com/?expert=R._Earl
Understanding The Debt-To-Income Ratio
The debt-to-income, commonly know as the DTI ratio is a formula that helps lenders estimate the amount of money they are willing to lend. This figure is based on the amount of long-term or reoccurring debt a borrower has accrued. Although the DTI ratio is not as well known as say, a credit score, lenders evaluate the DTI number just as heavily. However, keep in mind these lending rules of thumb were much more stringent before the subprime meltdown, now regulation seems to have tightened up once again. Now, back the subject at hand, the 28/36 rule is a formula that calculates the debt to income ratio.
Deconstructing the 28/36 rule
The 28 figure represents the [maximum] percentage of your monthly income allotted for housing expenses. Housing expenses include principal, interest, taxes, and insurance, or PITI. In other words, the aforementioned expenses should not exceed 28% of your monthly income. The 36 figure represents the [maximum] percentage of your monthly income allotted for housing expenses and long-term debt. Long-term or recurring debt includes car payments, average credit card payments, school loans, etc.
The 28/36 rule applied
Income: $45,000 annually/ $3750 monthly
28%= $1,050 monthly for housing expenses
36%= $1,350 monthly for housing expenses plus debt
Result: $1,350 - $1,050 = $300 allotted for monthly, recurring debt.
If your actual amount of debt is larger or smaller than this figure, your mortgage will be adjusted accordingly. Keep in mind this number fluctuates between lenders. With the boom of the housing market lenders were allowing up to 50% of income to be allowed for housing and debt. Now foreclosures are on the rise. Better to borrow safe than to be sorry in the end.
The information above is based on a conventional loan pre-subprime and post-subprime bust.
Florida Foreclosure Listings provides a complete guide to distressed properties throughout the state including the latest Florida real estate and foreclosure news.
Article Source: http://EzineArticles.com/?expert=Luanne_Pazos
Deconstructing the 28/36 rule
The 28 figure represents the [maximum] percentage of your monthly income allotted for housing expenses. Housing expenses include principal, interest, taxes, and insurance, or PITI. In other words, the aforementioned expenses should not exceed 28% of your monthly income. The 36 figure represents the [maximum] percentage of your monthly income allotted for housing expenses and long-term debt. Long-term or recurring debt includes car payments, average credit card payments, school loans, etc.
The 28/36 rule applied
Income: $45,000 annually/ $3750 monthly
28%= $1,050 monthly for housing expenses
36%= $1,350 monthly for housing expenses plus debt
Result: $1,350 - $1,050 = $300 allotted for monthly, recurring debt.
If your actual amount of debt is larger or smaller than this figure, your mortgage will be adjusted accordingly. Keep in mind this number fluctuates between lenders. With the boom of the housing market lenders were allowing up to 50% of income to be allowed for housing and debt. Now foreclosures are on the rise. Better to borrow safe than to be sorry in the end.
The information above is based on a conventional loan pre-subprime and post-subprime bust.
Florida Foreclosure Listings provides a complete guide to distressed properties throughout the state including the latest Florida real estate and foreclosure news.
Article Source: http://EzineArticles.com/?expert=Luanne_Pazos
Some Great Choices When Purchasing New Construction Homes
If you are like many people across the State of Florida, you may have found yourself very interested in purchasing Tampa Florida new construction real estate. In point of fact, when it comes to new homes in Tampa Bay there are a number of different options for you – depending upon what your own housing goals and needs are at this point in time.
Naturally, one of the most common trends associated with new construction involves gated communities. Many real estate experts actually consider the State of Florida to be the birthplace of the gated community. True or not, in looking at new homes in Tampa Bay, there are numerous newborn gated communities sprouting up in and around this metropolitan area.
When it comes to new homes, there are many individual gated community concepts that are available to people like you who are seeking an appropriate residential community. For example, there are gated communities that have been developed specifically for men and women who are in what might best be described as “The Golden Years.” Similarly, there are other types of gated communities that cater to the needs of other categories of individuals from different walks of life.
When considering new construction in Tampa Bay, “residences with a view” remain highly sought after. And, the view that people want more often than not are properties with a water view. As was the case in years now gone by, development along waterfronts continues to a notable element of the overall new home construction in the region. Because of the prime nature of this real estate, more often than not such properties do come with a noticeable price tag. With the dip in the real estate market at the present time, there are some instances in which a home buyer can get his or her hands on new homes in the Tampa Bay area for a less than anticipated purchase price.
Another notable trend in regard to Tampa real estate involves residential developments with families in mind. When it comes to this type of new homes, the focus is on three primary factors: schools, safety and green space. These developments all include access to well regarded schools, have lower crime rates and have incorporated parks and other types of green space in their overall design and construction.
Of course, if you are interested in the purchase of new homes in, you will want to engage the services of a qualified and professional Tampa real estate agent. Such a professional can assist you in identifying the most appropriate new property or development that will best meet your own goals and housing objectives.
Lance Mohr is your Tampa real estate expert, with over ten years of experience in real estate sales. He holds a real estate broker license in the state of Florida, and as a member of top relocation firms, such as Cendant Mobility, Prudential, Century 21, and others, has assisted countless individuals and corporations with their relocation needs. Lance has been investing in real estate for over 18 years, and he believes that a person's professional knowledge should continue even after college or vocational training. Lance can be reached at 813-317-4009 or lance@lancemohr.com Don't forget to visit our website http://tampa2enjoy.com and add http://tampa2enjoys.com/blog to your favorites section of your browser.
Article Source: http://EzineArticles.com/?expert=Lance_Mohr
Naturally, one of the most common trends associated with new construction involves gated communities. Many real estate experts actually consider the State of Florida to be the birthplace of the gated community. True or not, in looking at new homes in Tampa Bay, there are numerous newborn gated communities sprouting up in and around this metropolitan area.
When it comes to new homes, there are many individual gated community concepts that are available to people like you who are seeking an appropriate residential community. For example, there are gated communities that have been developed specifically for men and women who are in what might best be described as “The Golden Years.” Similarly, there are other types of gated communities that cater to the needs of other categories of individuals from different walks of life.
When considering new construction in Tampa Bay, “residences with a view” remain highly sought after. And, the view that people want more often than not are properties with a water view. As was the case in years now gone by, development along waterfronts continues to a notable element of the overall new home construction in the region. Because of the prime nature of this real estate, more often than not such properties do come with a noticeable price tag. With the dip in the real estate market at the present time, there are some instances in which a home buyer can get his or her hands on new homes in the Tampa Bay area for a less than anticipated purchase price.
Another notable trend in regard to Tampa real estate involves residential developments with families in mind. When it comes to this type of new homes, the focus is on three primary factors: schools, safety and green space. These developments all include access to well regarded schools, have lower crime rates and have incorporated parks and other types of green space in their overall design and construction.
Of course, if you are interested in the purchase of new homes in, you will want to engage the services of a qualified and professional Tampa real estate agent. Such a professional can assist you in identifying the most appropriate new property or development that will best meet your own goals and housing objectives.
Lance Mohr is your Tampa real estate expert, with over ten years of experience in real estate sales. He holds a real estate broker license in the state of Florida, and as a member of top relocation firms, such as Cendant Mobility, Prudential, Century 21, and others, has assisted countless individuals and corporations with their relocation needs. Lance has been investing in real estate for over 18 years, and he believes that a person's professional knowledge should continue even after college or vocational training. Lance can be reached at 813-317-4009 or lance@lancemohr.com Don't forget to visit our website http://tampa2enjoy.com and add http://tampa2enjoys.com/blog to your favorites section of your browser.
Article Source: http://EzineArticles.com/?expert=Lance_Mohr
Buying a House After the Sub Prime Squeeze
The days of easy lending are clearly over. At this time last year, the money flowed. Predatory lenders signed people up for mortgages without paperwork, gave out loans that covered 100% of the home's value and weighed them down with outrageous payments that exceeded their income. The fallout has been tremendous, leaving the banks scrambling to clean up a mess of foreclosures and defaults in the aftermath.
They've also tightened the purse strings - especially when it comes to the subprime market. Lenders are demanding documentation, downpayments and turning back to more traditional methods of qualifying loans. Those with a long history of paying bills on time won't be affected, but first time buyers or buyers with spotty credit histories need to get their paperwork in order.
The good news is that there's no great trick to it. With a good realtor, lender and a bit of financial diligence you can realize your dream even if you're not a prime borrower. The right home and mortgage are out there for you.
FIVE WAYS TO MAKE YOUR REAL ESTATE DREAMS COME TRUE
1. Find a banker or mortgage broker you can trust
2. Improve your credit rating: even if you're a year or more away from making a purchase, it's never too early to start. Don't kid yourself - anyone can do it
3. Clean up your report: scrub any problems or errors on your credit report clean
4. Educate yourself: learn the terms and take time to build your team
5. Work with a REALTOR: a good realtor will always save you time and money in a real estate transaction
NURTURE YOUR RELATIONSHIP WITH MONEY
There are a wide variety of loan types out there and you should never settle for the first one you see. While interest rates are usually the first consideration, the terms of a loan can be equally important to your long term financial well being. Sorting through the options will be easier and far more effective when you have a strong relationship with a banker or mortgage broker you can trust. That's why it's more important than ever to shop around for this key member of your real estate team. In most cases, this should be the first step in your search for a home.
A loan officer at a bank will be able to provide you with the range of lending options available through their institution. There is no charge for this service, though loan officers often work for commission. Banks often have a local advantage and a better understanding of the property you are interested in purchasing.
A mortgage broker on the other hand, is not limited to products from a single institution. The broker works for a fee, most often taken They will shop around to find a loan that suits your needs and will work with the chosen lender until the deal closes. Brokers can often find a lender for a loan that most banks would refuse.
WORK WITH A REALTOR
Your realtor knows the local market and who plays in it. Remove some of the guesswork from your search by taking advantage of their expertise and connections. They may be able to recommend a reputable financier, give you additional information on areas or properties you're interested in, or even help you find an interior designer when the deal is done.
Buying a home will probably be the single biggest financial investment you'll ever make but it doesn't have to be your biggest risk. With the right real estate agent, financing, information, and financial management, you will be the path to a brighter future of home ownership.
Scott Baxter is a licensed real estate agent specializing in Northern Arizona real estate. Scott owns and operates Realty 2000 Town and Country in Prescott, Arizona. If you're interested in purchasing a home in Arizona, contact Scott for personalized, incisive, and economically sound advice.
Article Source: http://EzineArticles.com/?expert=Scott_Baxter
They've also tightened the purse strings - especially when it comes to the subprime market. Lenders are demanding documentation, downpayments and turning back to more traditional methods of qualifying loans. Those with a long history of paying bills on time won't be affected, but first time buyers or buyers with spotty credit histories need to get their paperwork in order.
The good news is that there's no great trick to it. With a good realtor, lender and a bit of financial diligence you can realize your dream even if you're not a prime borrower. The right home and mortgage are out there for you.
FIVE WAYS TO MAKE YOUR REAL ESTATE DREAMS COME TRUE
1. Find a banker or mortgage broker you can trust
2. Improve your credit rating: even if you're a year or more away from making a purchase, it's never too early to start. Don't kid yourself - anyone can do it
3. Clean up your report: scrub any problems or errors on your credit report clean
4. Educate yourself: learn the terms and take time to build your team
5. Work with a REALTOR: a good realtor will always save you time and money in a real estate transaction
NURTURE YOUR RELATIONSHIP WITH MONEY
There are a wide variety of loan types out there and you should never settle for the first one you see. While interest rates are usually the first consideration, the terms of a loan can be equally important to your long term financial well being. Sorting through the options will be easier and far more effective when you have a strong relationship with a banker or mortgage broker you can trust. That's why it's more important than ever to shop around for this key member of your real estate team. In most cases, this should be the first step in your search for a home.
A loan officer at a bank will be able to provide you with the range of lending options available through their institution. There is no charge for this service, though loan officers often work for commission. Banks often have a local advantage and a better understanding of the property you are interested in purchasing.
A mortgage broker on the other hand, is not limited to products from a single institution. The broker works for a fee, most often taken They will shop around to find a loan that suits your needs and will work with the chosen lender until the deal closes. Brokers can often find a lender for a loan that most banks would refuse.
WORK WITH A REALTOR
Your realtor knows the local market and who plays in it. Remove some of the guesswork from your search by taking advantage of their expertise and connections. They may be able to recommend a reputable financier, give you additional information on areas or properties you're interested in, or even help you find an interior designer when the deal is done.
Buying a home will probably be the single biggest financial investment you'll ever make but it doesn't have to be your biggest risk. With the right real estate agent, financing, information, and financial management, you will be the path to a brighter future of home ownership.
Scott Baxter is a licensed real estate agent specializing in Northern Arizona real estate. Scott owns and operates Realty 2000 Town and Country in Prescott, Arizona. If you're interested in purchasing a home in Arizona, contact Scott for personalized, incisive, and economically sound advice.
Article Source: http://EzineArticles.com/?expert=Scott_Baxter
First Time Home Buyers In The Chicago Area Can Do Well With FHA Financing
If you are looking to buy a home in Chicago or the collar counties (Cook, Dupage, Will, Lake and McHenry), FHA financing may be a great fit for your needs. The mortgage market has changed recently. Not long ago there were all sorts of programs for buyers with little or no money for a down payment, even if their credit history was spotty. Things have changed. Lenders have tightened their guidelines, and most of these programs have disappeared. At one time, FHA was the only option if you wanted to buy but were strapped for cash. History is repeating itself and if you know how it works, FHA can make the difference between buying a house now, and renting for another year.
FHA loans are federally insured mortgages targeted toward increasing home ownership for people with moderate incomes. In the Chicago area you can get a mortgage up to the limit of $275,200 (Higher for a 2-4 flat). Because this is typically a 3% down payment loan, this means a purchase price of around $280,000. This figure changes every year, and many experts expect that the limit will be raised considerably in order to make up for the loss of so many other financing options.
Some of the reasons FHA may be right for you include:
A common sense approach to credit. FHA doesn’t require perfect credit. If you have had problems in your past, they will want to know what happened and what you have done to correct the problems. A few isolated late pays are no problem. If it is something bigger, they usually require a twelve months of good credit history.
Past bankruptcies are OK. If you are looking at conventional loans, they will require that you wait at least 3 years after a bankruptcy was discharged. FHA allows a new loan after 2 years, one year if you can show that the circumstances that led to the bankruptcy were beyond your control (medical problems, loss of job or similar situations). You will have to re-establish credit, and show that you can afford the new payment.
Low and in some cases, no down payment. Conventional loans usually require a minimum of 5% for a down payment. FHA only requires 3%, but this can be structured so you are not using any of your own money at all. One way to do this is through a gift from a family member. Another way is by using a grant program (Nehemiah and AmeriDream are two of the biggest).
Here is how it works. FHA allows a seller concession of up to 6% of the purchase price. When you negotiate the contract with the seller, you would ask for a concession on the price upfront -- the amount will usually be between three and a half to four percent of the price (more if you want to build in closing costs, too). Three percent will go for the down payment; the rest goes to pay for the organization’s administrative costs. The seller agrees to give this negotiated concession to the grant provider at the closing table, and they in turn give a "grant" to you for your down payment. This is all done on paper and no money really changes hands.
These are just a few of the advantages of FHA financing. Whether this is the best option for you depends on your goals and your personal situation. But for many buyers this is the best way to buy a home in today’s market.
Pete Thompson is a long time resident of the Chicago area, and has been a mortgage loan officer specializing in helping first-time home buyers since 1992. Go to http://www.ptmortgage.com for a Free copy of The Real World Home Buyer's Guide – How to save thousands when buying a home and getting a mortgage.
Article Source: http://EzineArticles.com/?expert=Pete_Thompson
FHA loans are federally insured mortgages targeted toward increasing home ownership for people with moderate incomes. In the Chicago area you can get a mortgage up to the limit of $275,200 (Higher for a 2-4 flat). Because this is typically a 3% down payment loan, this means a purchase price of around $280,000. This figure changes every year, and many experts expect that the limit will be raised considerably in order to make up for the loss of so many other financing options.
Some of the reasons FHA may be right for you include:
A common sense approach to credit. FHA doesn’t require perfect credit. If you have had problems in your past, they will want to know what happened and what you have done to correct the problems. A few isolated late pays are no problem. If it is something bigger, they usually require a twelve months of good credit history.
Past bankruptcies are OK. If you are looking at conventional loans, they will require that you wait at least 3 years after a bankruptcy was discharged. FHA allows a new loan after 2 years, one year if you can show that the circumstances that led to the bankruptcy were beyond your control (medical problems, loss of job or similar situations). You will have to re-establish credit, and show that you can afford the new payment.
Low and in some cases, no down payment. Conventional loans usually require a minimum of 5% for a down payment. FHA only requires 3%, but this can be structured so you are not using any of your own money at all. One way to do this is through a gift from a family member. Another way is by using a grant program (Nehemiah and AmeriDream are two of the biggest).
Here is how it works. FHA allows a seller concession of up to 6% of the purchase price. When you negotiate the contract with the seller, you would ask for a concession on the price upfront -- the amount will usually be between three and a half to four percent of the price (more if you want to build in closing costs, too). Three percent will go for the down payment; the rest goes to pay for the organization’s administrative costs. The seller agrees to give this negotiated concession to the grant provider at the closing table, and they in turn give a "grant" to you for your down payment. This is all done on paper and no money really changes hands.
These are just a few of the advantages of FHA financing. Whether this is the best option for you depends on your goals and your personal situation. But for many buyers this is the best way to buy a home in today’s market.
Pete Thompson is a long time resident of the Chicago area, and has been a mortgage loan officer specializing in helping first-time home buyers since 1992. Go to http://www.ptmortgage.com for a Free copy of The Real World Home Buyer's Guide – How to save thousands when buying a home and getting a mortgage.
Article Source: http://EzineArticles.com/?expert=Pete_Thompson
Clerkenwell Flats - Nice, Flashy and Affordable
Fantastically located and beautifully planned, Clerkenwell offers an ultimate destination for fashionable living at the heart of London. The place that was once graced by the greats like Oliver Cromwell, Daniel Defoe, John Bell and others is now perceived as an ideal place for designer living. Clerkenwell flats are nice in look, flashy in design and affordable in price. A plethora of options are there, suitable to all types of prospective tenants and buyers.
Surrounded by St Pancras, Bloomsbury, Holborn, St Luke’s etc, Clerkenwell boasts of being the home to some of the largest and biggest things in London. The Eagle, London’s first gastropub is situated there. It is home to the best restaurant in London, St John. Two of the largest nightclubs in London are also located there. Together with this there are the impeccably furnished Clerkenwell flats. All this contribute to make the area a hot favourite among the wealthy young professionals who work in the City.
The reason why Clerkenwell is able to offer spacious and high standard flat is that most of its properties, now available for sale, are old buildings that have been converted from offices, schools and small factories into large residential dwellings. Moreover, a number of new apartments have also been constructed and developed in the area. This way, new stylish flats are becoming available and the price is getting within the reach of buyers and tenants with tight budget.
From simple one bedroom accommodation to the flashy, spacious ones, Clerkenwell flats have a plethora of options for anybody and everybody. For students looking for plain accommodation, there are one bedroom flats. For high earning corporate, Little Italy (as the place used to be known) has roomy, stylish apartments. Thus, from a modest living to a lavish lifestyle, everything is possible if one resides in Clerkenwell. The availability of Farringdon, the main rail and tube station just works as icing on the cake.
About The Author:
Brooke Theresa has exhaustive knowledge on topics related to Real Estate and Property Investment and has been writing on this subject for a long time now. She is currently using her expertise as a real estate consultant with Hurford Salvi Carr.
Surrounded by St Pancras, Bloomsbury, Holborn, St Luke’s etc, Clerkenwell boasts of being the home to some of the largest and biggest things in London. The Eagle, London’s first gastropub is situated there. It is home to the best restaurant in London, St John. Two of the largest nightclubs in London are also located there. Together with this there are the impeccably furnished Clerkenwell flats. All this contribute to make the area a hot favourite among the wealthy young professionals who work in the City.
The reason why Clerkenwell is able to offer spacious and high standard flat is that most of its properties, now available for sale, are old buildings that have been converted from offices, schools and small factories into large residential dwellings. Moreover, a number of new apartments have also been constructed and developed in the area. This way, new stylish flats are becoming available and the price is getting within the reach of buyers and tenants with tight budget.
From simple one bedroom accommodation to the flashy, spacious ones, Clerkenwell flats have a plethora of options for anybody and everybody. For students looking for plain accommodation, there are one bedroom flats. For high earning corporate, Little Italy (as the place used to be known) has roomy, stylish apartments. Thus, from a modest living to a lavish lifestyle, everything is possible if one resides in Clerkenwell. The availability of Farringdon, the main rail and tube station just works as icing on the cake.
About The Author:
Brooke Theresa has exhaustive knowledge on topics related to Real Estate and Property Investment and has been writing on this subject for a long time now. She is currently using her expertise as a real estate consultant with Hurford Salvi Carr.
How To Make The Most Profit When Buying Property - Always Have An Exit Strategy
The number one mistake new investors make is not having more then one-exit strategy when buying real estate. It is very easy to map out a plan B or another exit strategy. Today we are going to give you some options and different exit strategies when investing.
Exit strategies--Always have a Plan B
While speculators rely on the "greater fool" strategy, flippers tend to have one of two exit plans:
1. Quickly flip the title to another investor, this is assigning the contract to another investor for a small fee.
2. Rehab and sell the property to an end user.
3. Rehab a property and put tenants in there and collect rent.
While the lion's share of the profits go to the retailer, a quick wholesale deal can free up your cash (and energy) for the next deal. But what if neither strategy works? What if the market really crashes and the buyers disappear? Is all lost? Of course not!
For complex economic reasons, the rental property market does not always correlate with the housing market. In fact, they are often counter cyclical. Currently we are in the high rental part of that cycle. Although most flippers are not terribly interested in being landlords, generating rental income from a botched deal is a solid backup plan. A lot of investors will also do a rent to own or lease option on a property they did not sell retail. This is a great way to make even more money when you sell to the people doing a rent to own. You cut out realtor fees when done this way.
To get a free ebook on the basics of doing a short sale just click on the link to the website listed. I have been investing for 10 years in real estate and I hope my knowledge helps. http://www.nobsshortsale.com
Article Source: http://EzineArticles.com/?expert=Derek_C_Carter
Exit strategies--Always have a Plan B
While speculators rely on the "greater fool" strategy, flippers tend to have one of two exit plans:
1. Quickly flip the title to another investor, this is assigning the contract to another investor for a small fee.
2. Rehab and sell the property to an end user.
3. Rehab a property and put tenants in there and collect rent.
While the lion's share of the profits go to the retailer, a quick wholesale deal can free up your cash (and energy) for the next deal. But what if neither strategy works? What if the market really crashes and the buyers disappear? Is all lost? Of course not!
For complex economic reasons, the rental property market does not always correlate with the housing market. In fact, they are often counter cyclical. Currently we are in the high rental part of that cycle. Although most flippers are not terribly interested in being landlords, generating rental income from a botched deal is a solid backup plan. A lot of investors will also do a rent to own or lease option on a property they did not sell retail. This is a great way to make even more money when you sell to the people doing a rent to own. You cut out realtor fees when done this way.
To get a free ebook on the basics of doing a short sale just click on the link to the website listed. I have been investing for 10 years in real estate and I hope my knowledge helps. http://www.nobsshortsale.com
Article Source: http://EzineArticles.com/?expert=Derek_C_Carter
Buying Florida Property - Key Actions For Success
Whether you’re buying Florida property to use for your own holidays or simply as an investment to broaden your portfolio, it can be an exciting experience. If it’s a holiday home you’re looking for, you get a place of your own in the Florida sunshine with the space and comfort that no hotel can offer. If you’re buying as an investment, the choices are widespread and the potential is enormous.
But your chances of success are tremendously increased if you just get the basics right from the beginning.
"Basics"?
Well, there are many ways to approach the buying process but most successful buyers that we’ve talked to and worked with (and that’s a lot) have reported that a focus on the following key points was fundamental to making the right choices:
1. Research is essential
The Internet provides an excellent source of Florida property information, for example:
• A simple Google search using phrases such as “buying Florida property.
• Surfing the sites of local newspapers (e.g. www.orlandosentinel.com) will generate even more data.
• Specialist sites such as www.realtor.com have seemingly countless listings of properties.
One note of caution though: lots of web content is out of date and downright misleading. Take what you read with a pinch of salt and be determined to verify whatever you read. And maintain an open mind until you actually visit the properties you’ve seen on-line. For example, you would never know that the highly-desirable bargain-priced luxury home is overlooked by a motorway flyover unless you saw for yourself – however well-presented the web site is and no matter how convincing the sales person!
2. Understand the process
Terms, conditions and the overall process are very different in Florida, compared to the UK. For example, the legal commitment of exchanging contract takes place at a very early stage in the Florida system, so you need to know what your rights and obligations are before agreeing to buy. And what happens after you’ve “exchanged contracts”?
3. Sort out your financing
If you’re like most buyers and you’ll be raising a part of the purchase price via a loan, consider in advance whether you will raise this in the UK (e.g. through a re-mortgage of your existing UK home) or by taking out a US mortgage. Both options have pros and cons – think carefully about what meets your needs the best and speak to someone who can explain the pros and cons.
4. Get some help
Independence is fine, commendable and very British – but unless you know the local market, the buying process and the pitfalls to avoid, the price of your independence could be high. Cut down on the risks by finding a local Realtor to advise you: under the Florida system, Realtor fees are almost always paid out of the Seller’s funds, even when that Realtor is acting solely on the Buyer’s behalf. It may sound strange to UK buyers, but if the help is free, why not use it? Find a Realtor who you are comfortable working with and who does not pressure or manipulate you into buying.
All of the above is obviously a very brief summary and it only scratches the surface. For more free information and advice, visit our website at http://www.buying-florida-property.co.uk
Colin Stafford is a licensed Florida Realtor working with Perfect Florida Homes LLC. A UK national who has lived in Florida since 1997, his business and accounting background enables him to provide broadly-based advice to UK buyers and, as an investor who has personally or in partnership purchased 20 Florida properties, his advice is backed up by practical and hands-on experience. He can be reached for questions and advice by completing and sending off the Contact Us form at http://www.buying-florida-property.co.uk.
Article Source: http://EzineArticles.com/?expert=Colin_Stafford
But your chances of success are tremendously increased if you just get the basics right from the beginning.
"Basics"?
Well, there are many ways to approach the buying process but most successful buyers that we’ve talked to and worked with (and that’s a lot) have reported that a focus on the following key points was fundamental to making the right choices:
1. Research is essential
The Internet provides an excellent source of Florida property information, for example:
• A simple Google search using phrases such as “buying Florida property.
• Surfing the sites of local newspapers (e.g. www.orlandosentinel.com) will generate even more data.
• Specialist sites such as www.realtor.com have seemingly countless listings of properties.
One note of caution though: lots of web content is out of date and downright misleading. Take what you read with a pinch of salt and be determined to verify whatever you read. And maintain an open mind until you actually visit the properties you’ve seen on-line. For example, you would never know that the highly-desirable bargain-priced luxury home is overlooked by a motorway flyover unless you saw for yourself – however well-presented the web site is and no matter how convincing the sales person!
2. Understand the process
Terms, conditions and the overall process are very different in Florida, compared to the UK. For example, the legal commitment of exchanging contract takes place at a very early stage in the Florida system, so you need to know what your rights and obligations are before agreeing to buy. And what happens after you’ve “exchanged contracts”?
3. Sort out your financing
If you’re like most buyers and you’ll be raising a part of the purchase price via a loan, consider in advance whether you will raise this in the UK (e.g. through a re-mortgage of your existing UK home) or by taking out a US mortgage. Both options have pros and cons – think carefully about what meets your needs the best and speak to someone who can explain the pros and cons.
4. Get some help
Independence is fine, commendable and very British – but unless you know the local market, the buying process and the pitfalls to avoid, the price of your independence could be high. Cut down on the risks by finding a local Realtor to advise you: under the Florida system, Realtor fees are almost always paid out of the Seller’s funds, even when that Realtor is acting solely on the Buyer’s behalf. It may sound strange to UK buyers, but if the help is free, why not use it? Find a Realtor who you are comfortable working with and who does not pressure or manipulate you into buying.
All of the above is obviously a very brief summary and it only scratches the surface. For more free information and advice, visit our website at http://www.buying-florida-property.co.uk
Colin Stafford is a licensed Florida Realtor working with Perfect Florida Homes LLC. A UK national who has lived in Florida since 1997, his business and accounting background enables him to provide broadly-based advice to UK buyers and, as an investor who has personally or in partnership purchased 20 Florida properties, his advice is backed up by practical and hands-on experience. He can be reached for questions and advice by completing and sending off the Contact Us form at http://www.buying-florida-property.co.uk.
Article Source: http://EzineArticles.com/?expert=Colin_Stafford
Home Inspectors are Expensive!
Can't I do it myself?
Let me answer this question this way; How much are you paying for this house? This is likely one of the most expensive items you will ever buy. Do you have the experience and training to evaluate literally hundreds of inspection points in all the houses systems?
Consider but a few examples: Acting as your own home inspector, you must open the electric service panel and determine whether there are any wiring violations. You must walk the roof surfaces to determine the condition of the roofing material, the flashing and drains, noting defective conditions and faulty methods of installation. You must evaluate the plumbing fixtures, water lines, drain lines and gas piping to determine their operational condition and their compliance with accepted building standards. You must review the heating system to determine its functional condition and identify any of a long list of potential safety problems. You must crawl under the building and through the attic, searching for and recognizing a vast number of potential construction defects. A complete list of likely problems could easily fill a book.
My "buddy" is a contractor, he knows about building. Can't he do it for me?
The majority of home inspectors are, in fact, former general contractors. Without exception, these professionals will attest that most of what they know about inspecting homes was learned after they began their home inspection careers, not while they were engaged in building construction. This is not meant to demean the integrity or respectability of the contracting profession, but rather, to point out the essential differences between home construction and home inspection as distinct professional practices.
General building contractors deal primarily with constructing things that are new and applying standards that appertain to what is new. Their daily experience is with construction that is in accordance with accepted codes and established building practices and conducted under the authority and regulation of required building permits. In short, their experiences are with things that are standard, rather than substandard; out-of-the-box, rather than worn and weathered; built and assembled by professionals, rather than by amateurs.
Home inspectors, on the other hand, deal routinely with properties that are new, old, very old and with those that are combinations of all three. They deal with homes that are well maintained, poorly maintained, or totally deteriorated; with buildings that are original or have been altered; with homes that are altered with permits or without them; homes with defects that are readily apparent or cleverly concealed; homes with problems that are commonly recognizable or that require esoteric knowledge. They inspect quality craftsmanship, mediocre workmanship, and substandard handiwork. They inspect homes with major and minor defects; with minor problems that appear major and with major problems that seem minor. In short, home inspectors must recognize and identify defects in every imaginable situation within the realm of modern and not-so-modern housing.
So…the answer is NO!
Even a qualified Home Inspector is not allowed to inspect his OWN home for ethical reasons. Doing your own inspection is a very bad idea. Spending $300-$500 on a proper Home Inspection is "chump change" compared to the thousands of dollars it will cost you for even one "miss" in your DYI home inspection. Mess up buying the wrong car - a few thousand dollars. Mess up buying a new HD TV, a couple of hundred dollars. But....mess up and buy a home with undiscovered defects and you may end up paying many, many thousands of dollars to correct the defects not to mention the years of hassles with lawyers, sellers and contractors to sort it all out.
Hire a qualified Home Inspector and rest easy knowing that he will find those sneaky little defects that could cost you a lot of money or end you up in court fighting with the seller and the Realtors.
http://ezinearticles.com/?Home-Inspectors-are-Expensive!&id=701609
Let me answer this question this way; How much are you paying for this house? This is likely one of the most expensive items you will ever buy. Do you have the experience and training to evaluate literally hundreds of inspection points in all the houses systems?
Consider but a few examples: Acting as your own home inspector, you must open the electric service panel and determine whether there are any wiring violations. You must walk the roof surfaces to determine the condition of the roofing material, the flashing and drains, noting defective conditions and faulty methods of installation. You must evaluate the plumbing fixtures, water lines, drain lines and gas piping to determine their operational condition and their compliance with accepted building standards. You must review the heating system to determine its functional condition and identify any of a long list of potential safety problems. You must crawl under the building and through the attic, searching for and recognizing a vast number of potential construction defects. A complete list of likely problems could easily fill a book.
My "buddy" is a contractor, he knows about building. Can't he do it for me?
The majority of home inspectors are, in fact, former general contractors. Without exception, these professionals will attest that most of what they know about inspecting homes was learned after they began their home inspection careers, not while they were engaged in building construction. This is not meant to demean the integrity or respectability of the contracting profession, but rather, to point out the essential differences between home construction and home inspection as distinct professional practices.
General building contractors deal primarily with constructing things that are new and applying standards that appertain to what is new. Their daily experience is with construction that is in accordance with accepted codes and established building practices and conducted under the authority and regulation of required building permits. In short, their experiences are with things that are standard, rather than substandard; out-of-the-box, rather than worn and weathered; built and assembled by professionals, rather than by amateurs.
Home inspectors, on the other hand, deal routinely with properties that are new, old, very old and with those that are combinations of all three. They deal with homes that are well maintained, poorly maintained, or totally deteriorated; with buildings that are original or have been altered; with homes that are altered with permits or without them; homes with defects that are readily apparent or cleverly concealed; homes with problems that are commonly recognizable or that require esoteric knowledge. They inspect quality craftsmanship, mediocre workmanship, and substandard handiwork. They inspect homes with major and minor defects; with minor problems that appear major and with major problems that seem minor. In short, home inspectors must recognize and identify defects in every imaginable situation within the realm of modern and not-so-modern housing.
So…the answer is NO!
Even a qualified Home Inspector is not allowed to inspect his OWN home for ethical reasons. Doing your own inspection is a very bad idea. Spending $300-$500 on a proper Home Inspection is "chump change" compared to the thousands of dollars it will cost you for even one "miss" in your DYI home inspection. Mess up buying the wrong car - a few thousand dollars. Mess up buying a new HD TV, a couple of hundred dollars. But....mess up and buy a home with undiscovered defects and you may end up paying many, many thousands of dollars to correct the defects not to mention the years of hassles with lawyers, sellers and contractors to sort it all out.
Hire a qualified Home Inspector and rest easy knowing that he will find those sneaky little defects that could cost you a lot of money or end you up in court fighting with the seller and the Realtors.
http://ezinearticles.com/?Home-Inspectors-are-Expensive!&id=701609
Spanish Properties Make Spain More Enjoyable
A long vacation is on the cards, are you wondering where to head off to? Do yourself a world of good by selecting Spain. Spain, the country of diversity and a lot of variety, enjoys the attention of tourists from all parts of the world. It is one of the most popular destinations that people love to visit, especially to make the most out of their vacations.
Most of the people who visit Spain frequently make a smart move by investing in Spanish properties. Investing in Spanish properties is the best investment that you can go ahead with. Spain has a lot to offer to people who come here. There is something for everyone. With beautiful mountains, sprawling golden beaches, fine architecture, a year full of fiestas and festivities, you can never grow bored of this place.
You love to spend time in solitude? You can spend warm, breezy afternoons sitting in the long verandas of plush Spanish properties, drooping, dreaming and waking up from your cosy siesta. Imagine watching the sunset sitting on the sea shore all alone, reflecting on life, as you bid goodbye to the golden sun silently submerging in the water.
If such a recluse is not your cup of tea, and you are game for some fun and frolic, then you can spend your nights in the various pubs, discotheques, and nightclubs and shake a leg or two or simply enjoy yourself the way you to. If you love colourful celebrations, then Spain has numerous fiestas for you to get drowned in. Be a part of the various floats, the dance, and the music and shun away all your blues.
Living in Spanish properties, you have more freedom to enjoy Spain. You are free of worries and also you reduce your costs to a large extent.
About The Author :
Brittney Jackline is a well known professional writer. She has won appreciation especially for good writing about the Spanish Real Estate topic like properties in Spain
Most of the people who visit Spain frequently make a smart move by investing in Spanish properties. Investing in Spanish properties is the best investment that you can go ahead with. Spain has a lot to offer to people who come here. There is something for everyone. With beautiful mountains, sprawling golden beaches, fine architecture, a year full of fiestas and festivities, you can never grow bored of this place.
You love to spend time in solitude? You can spend warm, breezy afternoons sitting in the long verandas of plush Spanish properties, drooping, dreaming and waking up from your cosy siesta. Imagine watching the sunset sitting on the sea shore all alone, reflecting on life, as you bid goodbye to the golden sun silently submerging in the water.
If such a recluse is not your cup of tea, and you are game for some fun and frolic, then you can spend your nights in the various pubs, discotheques, and nightclubs and shake a leg or two or simply enjoy yourself the way you to. If you love colourful celebrations, then Spain has numerous fiestas for you to get drowned in. Be a part of the various floats, the dance, and the music and shun away all your blues.
Living in Spanish properties, you have more freedom to enjoy Spain. You are free of worries and also you reduce your costs to a large extent.
About The Author :
Brittney Jackline is a well known professional writer. She has won appreciation especially for good writing about the Spanish Real Estate topic like properties in Spain
Buying VS Renting Your Home - Which Makes the Most Sense?
Deciding whether to buy or rent your home can appear to be a tricky decision if you have yet to get your feet wet in real estate. In reality, however, the decision involves relatively simple math and logic. The basic rule of thumb is as follows: if you are looking to occupy for the short-term, renting makes the most sense; but if you are in it for the long haul, buying is probably your best option.
Here’s why:
In the long run, real estate tends to appreciate in value. The amount of appreciation varies by area and market timing, but over time, most every home will appreciate in value so long as it is in a desirable area. In good markets, appreciation can exceed 10% per year on an annualized basis over a long time frame. The return on your investment that you actually recognize as a homeowner is much greater because of a concept called leverage.
Leverage explained:
Leverage in this case is simply borrowing money in the form of a mortgage to magnify your return on investment. Say you purchase a home for $200,000. To buy this home you decide to put down 20% of the purchase price ($40,000) and take out a mortgage on the rest ($180,000). For simplicity purposes, let's just assume your property appreciates 10% during the year following your purchase, which would be $20,000 (10% of your purchase price multiplied by $200,000). Expenses and interest payments aside, you just made $20,000 on your $40,000 down payment or 50% on your money. Over a five year period, your gain would equate to $122,102 (a 305% return without taking interest, maintenance, tax, and improvement costs into the equation). The interest payments on your mortgage would be tax deductible so long as this was your primary or secondary residence. Therefore, your interest expenses would not punish your return as much as you might think.
The truth behind buying in the short-run:
In the short-run, however, your gains would not be as substantial as they would appear because of the 5-6% real estate commission you would likely incur to sell the home. Six percent of $220,000 = $13,200. After your other expenses (interest, maintenance, property taxes, and improvements), you would be lucky to break even if you sold after the first year.
In the long-run, however, your leveraged gains should far exceed realtor's commissions and other expenses, so buying makes sense in many scenarios.
Are retirement communities right for you? If you want to learn more about your retirement real estate options, click here or visit http://www.afteriretire.com, a popular resource for retirement planning information.
Article Source: http://EzineArticles.com/?expert=Aj_Yeakel
Here’s why:
In the long run, real estate tends to appreciate in value. The amount of appreciation varies by area and market timing, but over time, most every home will appreciate in value so long as it is in a desirable area. In good markets, appreciation can exceed 10% per year on an annualized basis over a long time frame. The return on your investment that you actually recognize as a homeowner is much greater because of a concept called leverage.
Leverage explained:
Leverage in this case is simply borrowing money in the form of a mortgage to magnify your return on investment. Say you purchase a home for $200,000. To buy this home you decide to put down 20% of the purchase price ($40,000) and take out a mortgage on the rest ($180,000). For simplicity purposes, let's just assume your property appreciates 10% during the year following your purchase, which would be $20,000 (10% of your purchase price multiplied by $200,000). Expenses and interest payments aside, you just made $20,000 on your $40,000 down payment or 50% on your money. Over a five year period, your gain would equate to $122,102 (a 305% return without taking interest, maintenance, tax, and improvement costs into the equation). The interest payments on your mortgage would be tax deductible so long as this was your primary or secondary residence. Therefore, your interest expenses would not punish your return as much as you might think.
The truth behind buying in the short-run:
In the short-run, however, your gains would not be as substantial as they would appear because of the 5-6% real estate commission you would likely incur to sell the home. Six percent of $220,000 = $13,200. After your other expenses (interest, maintenance, property taxes, and improvements), you would be lucky to break even if you sold after the first year.
In the long-run, however, your leveraged gains should far exceed realtor's commissions and other expenses, so buying makes sense in many scenarios.
Are retirement communities right for you? If you want to learn more about your retirement real estate options, click here or visit http://www.afteriretire.com, a popular resource for retirement planning information.
Article Source: http://EzineArticles.com/?expert=Aj_Yeakel
Siesta Key Beach Front Living
Considered to be one of the "Worlds Best Beaches" by the Travel Channel, Siesta Key has long been one of the top tourist attractions for Sarasota. The Travel Channel rated Siesta Key 5 out of 5 for beach sand, child-friendliness and swimming. This barrier island is world famous for its powdery soft, sugar white sand. Unlike most beaches made of crushed coral, this beach consists of 99 quartz that has been pulverized to a fine powder and best of all it stays cool to touch even in the scorching hot sun. Beach lovers can enjoy approximately 8 miles of pristine sand directly on the azure waters of the Gulf of Mexico.
With a population of about 12,000 full time residents, and double that with snow birds and tourists, this island keeps busy though out the year because residents too, like to enjoy this charming, amicable and resplendent beach. Whether you live here year round or just visiting, everyone can indulge in water activities such as parasailing, snorkeling, jet skiing, boating, fishing, kayaking and many more on this 8 miles long Barrier Island stretch. For those who want to shop or eat out, Siesta Key Village offers an eclectic array of possibilities, but with a carefree and laid back atmosphere. The Village features an active nightlife with a variety of cafes, restaurants, bars and shopping.
Siesta Key's popularity has grown so rapidly in the past few years that the island has become a kaleidoscope of opulent and lavish estates and condominiums. It has outgrown its name sleepy key, but it is still peaceful and relaxing as ever.
If you are considering a vacation home, investment property or primary residence on Siesta Key, there are a variety of options. From a simple one bedroom condo to a lavish direct beach front residence, there is something to suit almost every lifestyle and budget. The majority of beach front property is lined with condominiums. However, there are a plenty of gulf front single family home options as well. Real estate prices on Siesta Key start in the $300,000's and go up into the millions.
Siesta Key is a barrier island located between Sarasota Bay and the Gulf of Mexico. With a year round average temperature of 72°F, gorgeous beaches and an array of outdoor activities, it's no wonder so many people are drawn to the area. For those that would like to explore the island before purchasing, there are many vacation rentals available.
John Allen is a Sarasota luxury real estate agent representing buyers and sellers of fine real estate. He specializes in condominiums, waterfront properties and golf course homes.
Article Source: http://EzineArticles.com/?expert=John_C._Allen
With a population of about 12,000 full time residents, and double that with snow birds and tourists, this island keeps busy though out the year because residents too, like to enjoy this charming, amicable and resplendent beach. Whether you live here year round or just visiting, everyone can indulge in water activities such as parasailing, snorkeling, jet skiing, boating, fishing, kayaking and many more on this 8 miles long Barrier Island stretch. For those who want to shop or eat out, Siesta Key Village offers an eclectic array of possibilities, but with a carefree and laid back atmosphere. The Village features an active nightlife with a variety of cafes, restaurants, bars and shopping.
Siesta Key's popularity has grown so rapidly in the past few years that the island has become a kaleidoscope of opulent and lavish estates and condominiums. It has outgrown its name sleepy key, but it is still peaceful and relaxing as ever.
If you are considering a vacation home, investment property or primary residence on Siesta Key, there are a variety of options. From a simple one bedroom condo to a lavish direct beach front residence, there is something to suit almost every lifestyle and budget. The majority of beach front property is lined with condominiums. However, there are a plenty of gulf front single family home options as well. Real estate prices on Siesta Key start in the $300,000's and go up into the millions.
Siesta Key is a barrier island located between Sarasota Bay and the Gulf of Mexico. With a year round average temperature of 72°F, gorgeous beaches and an array of outdoor activities, it's no wonder so many people are drawn to the area. For those that would like to explore the island before purchasing, there are many vacation rentals available.
John Allen is a Sarasota luxury real estate agent representing buyers and sellers of fine real estate. He specializes in condominiums, waterfront properties and golf course homes.
Article Source: http://EzineArticles.com/?expert=John_C._Allen
The Inspection Is Finished, Now What?
You have just finished going over the Home Inspection report with your Inspector. Now what do you do with the information they have provided you? Typically, most buyers sit down with their Realtor® and go over the report again, item by item. It is very important for you to fully read and understand the report you paid for. There are often items that could have a significant financial impact. The Realtor® will work out a "request for repairs" letter to send to the seller's Realtor®, stating what you want repaired or how much "credit" to correct the defects found after the sale.
What do you ask for? How much should you ask the seller to credit you? Should you have them repair or do it your self? When do you want it done?
All tough questions! Of course, if you have a good professional representing you, it will go a little more smoothly.
There are obviously many deciding factors here:
* How "tight" is the market in this area?
* Is there any "wiggle" room for the seller in the deal?
* Do you trust the seller to do proper repairs and not just quickie them?
* Do you even have a clue what the repairs will cost? This is too big a purchase to guess.
* Should the repairs be completed before escrow closes of after?
* How will repairs after escrow be paid for?
I can make a few suggestions that could help. If the deal is tight, consider cutting a deal with the seller and when asking for a repair, offer to split it with them.
Get estimates for repairs from those supplemental inspectors the report probably called for. They are the ones that can tell you what something will cost since they are trying to get the job. Also, having a bid from a professional takes guessing out of the picture and gives credence the amount you are asking in credits.
I council my clients to take a credit and handle the repairs with their own people so they can control the quality better.
Depending on the extent of the repairs being asked for you can accept the bids from the contractors for smaller jobs up to a few thousand in most cases as the amount you ask for.
More extensive repairs often uncover other, concealed defects that will cost more to fix. Large jobs seldom come in on budget due to this issue. If you settled for the bid price, you could end up eating a larger chunk than you had planned on. A good argument for having the seller take responsibility for the repairs.
Most of the escrows I see are 30-60 days. This is often enough time to complete small repairs. Unless your escrow is much longer, I would leave the larger repairs till after escrow and use a contract with the seller to secure the payment for them. Just put the money in an escrow account to guarantee the money will be there when needed.
So, there is a way to intelligently handle these potentially troublesome issues in a straight forward manner. A Realtor® Professional is there to guide you through this. Make them earn their money!
http://ezinearticles.com/?The-Inspection-Is-Finished,-Now-What?&id=704170
What do you ask for? How much should you ask the seller to credit you? Should you have them repair or do it your self? When do you want it done?
All tough questions! Of course, if you have a good professional representing you, it will go a little more smoothly.
There are obviously many deciding factors here:
* How "tight" is the market in this area?
* Is there any "wiggle" room for the seller in the deal?
* Do you trust the seller to do proper repairs and not just quickie them?
* Do you even have a clue what the repairs will cost? This is too big a purchase to guess.
* Should the repairs be completed before escrow closes of after?
* How will repairs after escrow be paid for?
I can make a few suggestions that could help. If the deal is tight, consider cutting a deal with the seller and when asking for a repair, offer to split it with them.
Get estimates for repairs from those supplemental inspectors the report probably called for. They are the ones that can tell you what something will cost since they are trying to get the job. Also, having a bid from a professional takes guessing out of the picture and gives credence the amount you are asking in credits.
I council my clients to take a credit and handle the repairs with their own people so they can control the quality better.
Depending on the extent of the repairs being asked for you can accept the bids from the contractors for smaller jobs up to a few thousand in most cases as the amount you ask for.
More extensive repairs often uncover other, concealed defects that will cost more to fix. Large jobs seldom come in on budget due to this issue. If you settled for the bid price, you could end up eating a larger chunk than you had planned on. A good argument for having the seller take responsibility for the repairs.
Most of the escrows I see are 30-60 days. This is often enough time to complete small repairs. Unless your escrow is much longer, I would leave the larger repairs till after escrow and use a contract with the seller to secure the payment for them. Just put the money in an escrow account to guarantee the money will be there when needed.
So, there is a way to intelligently handle these potentially troublesome issues in a straight forward manner. A Realtor® Professional is there to guide you through this. Make them earn their money!
http://ezinearticles.com/?The-Inspection-Is-Finished,-Now-What?&id=704170
Home Buying
Buying a home is emotional. It is exciting and exhilarating particularly for first time purchasers and the excitement can in fact carry you into a situation fraught with unexpected expenses and burdens if we are carried away by our own excitement rather than having at our fingertips the information we need to make an informed purchase.
The purchase of a prebuilt home will help you to know exactly what you are spending and what its going for.
Many times prebuilt homes can be purchased with minimal down payments, and the contractor who sells you the home will help you to know how to choose a mortgage, inform you in ways to take advantage of government incentives and how to calculate your closing costs and find a home in his prebuilt community that is well within your price range.
Saving you time and money on such things as home inspections, negotiations on price and repairs as well as being your own realty representative are just a few of the things you may take away from your prebuilt fgv home buying experience
Everything about the home buying process may have its pitfalls and difficulties.
Making the purchase as easy as possible is the goal of the home builder who is pre constructing your condo or new home. Helping you to feel comfortable with your purchase by permitting you to ask questions and giving honest answers to them is part of what the contractor and builders are for.
Their task is more than simply selling you a home and letting you stew, hoping that you got the best deal you could. Instead the good contractor will be with you every step of the way, keeping you informed about the state of the house, the conclusion for your particular home as well as the community, and helping to find ways to meet all of your needs in the home purchase.
Viewing the houses being built is a wonderful way to feel part of it and to know that your new home is state of the art and has exactly what you want in a home.
Talking with the contractors and watching the work as it goes on, (from a distance, for safety's sake) makes you feel that sense of excitement as the home grows to its conclusion. It will give you the chance to ask questions and to learn through those who know what the home market is all about.
Please visit First Release Homes
http://ezinearticles.com/?Home-Buying&id=706366
The purchase of a prebuilt home will help you to know exactly what you are spending and what its going for.
Many times prebuilt homes can be purchased with minimal down payments, and the contractor who sells you the home will help you to know how to choose a mortgage, inform you in ways to take advantage of government incentives and how to calculate your closing costs and find a home in his prebuilt community that is well within your price range.
Saving you time and money on such things as home inspections, negotiations on price and repairs as well as being your own realty representative are just a few of the things you may take away from your prebuilt fgv home buying experience
Everything about the home buying process may have its pitfalls and difficulties.
Making the purchase as easy as possible is the goal of the home builder who is pre constructing your condo or new home. Helping you to feel comfortable with your purchase by permitting you to ask questions and giving honest answers to them is part of what the contractor and builders are for.
Their task is more than simply selling you a home and letting you stew, hoping that you got the best deal you could. Instead the good contractor will be with you every step of the way, keeping you informed about the state of the house, the conclusion for your particular home as well as the community, and helping to find ways to meet all of your needs in the home purchase.
Viewing the houses being built is a wonderful way to feel part of it and to know that your new home is state of the art and has exactly what you want in a home.
Talking with the contractors and watching the work as it goes on, (from a distance, for safety's sake) makes you feel that sense of excitement as the home grows to its conclusion. It will give you the chance to ask questions and to learn through those who know what the home market is all about.
Please visit First Release Homes
http://ezinearticles.com/?Home-Buying&id=706366
What Steps to Take to Prepare for Purchasing a Home
The buying of a new home takes a bit of time to accomplish, and is not a decision that can be made on the spur of the moment.
The decision to buy or build is a weighty decision at best, and will be among the more important ones you will ever make.
Decide before you do purchase your home to spend some time looking at multiple houses and homes before you decide which one is right for you.
Don’t choose on the spur of the moment. As the old adage goes, haste makes waste and that is one thing that you don’t have time for when you buy a new place to live.
The investment in money alone requires that you take your time and not rush into the purchase before you ware sure that this is where you want to live.
How Do You plan to purchase... Decide what steps you can take to find the home of your dreams. Searching Realtors online, or for sale by owner advertisements on sites that list homes. Perhaps a friend of neighbor might know of homes for sale in your area., or out of it if that’s what you plan to do.
Check incessantly on line and in the local paper. Peruse real estate agencies.
Choose a prebuilt homes contractor and speak with him to find out what kinds of home communities or prebuilt homes are available in your area.
Check with condo resellers or with retailers of building products you know, who may also be in the know about new homes going up in your area.
Get a buyers agent if you still can’t find what you are searching for. A buyers agent is someone who is willing to look around the Realtors and the community and find a house for you based on your specifications of price, bedroom space, bathroom numbers and even such things as school system .
She will know if there are community builds going on now that could benefit you, or if a condo is being prebuilt somewhere, or even if there is a gated community in the works in your area. A buyers agent will help to save you vast sums in terms of time and total sheer frustration because they know of methods that we don’t to track down your perfect community and your perfect house.
He or she has many years at this type of searching and can usually find several homes that they think you might be interested in viewing, so that your time is spent looking at the homes with a view to purchasing one, rather than just wasting your time trying to find something to look at.
http://ezinearticles.com/?What-Steps-to-Take-to-Prepare-for-Purchasing-a-Home&id=706371
The decision to buy or build is a weighty decision at best, and will be among the more important ones you will ever make.
Decide before you do purchase your home to spend some time looking at multiple houses and homes before you decide which one is right for you.
Don’t choose on the spur of the moment. As the old adage goes, haste makes waste and that is one thing that you don’t have time for when you buy a new place to live.
The investment in money alone requires that you take your time and not rush into the purchase before you ware sure that this is where you want to live.
How Do You plan to purchase... Decide what steps you can take to find the home of your dreams. Searching Realtors online, or for sale by owner advertisements on sites that list homes. Perhaps a friend of neighbor might know of homes for sale in your area., or out of it if that’s what you plan to do.
Check incessantly on line and in the local paper. Peruse real estate agencies.
Choose a prebuilt homes contractor and speak with him to find out what kinds of home communities or prebuilt homes are available in your area.
Check with condo resellers or with retailers of building products you know, who may also be in the know about new homes going up in your area.
Get a buyers agent if you still can’t find what you are searching for. A buyers agent is someone who is willing to look around the Realtors and the community and find a house for you based on your specifications of price, bedroom space, bathroom numbers and even such things as school system .
She will know if there are community builds going on now that could benefit you, or if a condo is being prebuilt somewhere, or even if there is a gated community in the works in your area. A buyers agent will help to save you vast sums in terms of time and total sheer frustration because they know of methods that we don’t to track down your perfect community and your perfect house.
He or she has many years at this type of searching and can usually find several homes that they think you might be interested in viewing, so that your time is spent looking at the homes with a view to purchasing one, rather than just wasting your time trying to find something to look at.
http://ezinearticles.com/?What-Steps-to-Take-to-Prepare-for-Purchasing-a-Home&id=706371
New Homes and Builders
There are many reasons to purchase a new home as opposed to a used one, which has been around possibly for nearly a century.
The very least of which will be the ability to find exactly what you want because you will be the one designing it.
There are some wonderful plans on the market that permit you to choose from them, so long as you stay within certain guidelines.
They are purchased predrawn and certain types of homes are built from them.
The home plans come at a nominal cost in comparison to the hiring or an architect to draw custom plans for a new home.
Builders often purchase the rights to certain home plans to build them in numbers prior to selling them .
Communities are built prior to sale or even being ordered by a client, and when the homes are built they are put on the market at the current market value.
Often these homes are not sold in a timely way, and in some cases the homes will go down markedly in price prior to being purchased.
A good method for a new home owner to find a reasonable price for a new home.
Should you choose instead to build a new home using your own plans, hire a competent architect to design what it is that you want and to offer his or her best guess on how long the completion of the building will take.
Builders are plentiful today as the market for homes is on a marked upsurge.
When you look for a builder find others for whom he has built homes and ask them for their experiences with your builder, in order to prevent problems before they occur.
Many builders will be reputable and work well with the prospective home owner but nightmare stories exist of coming in as much as 30 thousand dollars over budget and taking excessive amounts of time to complete the project at hand, which leaves the home owner effectively homeless should their home have been sold in the interim.
When planning a new home purchase, always check the area in which you plan to build to be certain whether there has existed any problems with the water or sewage, or if in fact flooding is a regular occurrence there.
Working now to prevent future problems will pay off in your ability to enjoy your new home.
For further details, please visit First Release Homes
http://ezinearticles.com/?New-Homes-and-Builders&id=707116
The very least of which will be the ability to find exactly what you want because you will be the one designing it.
There are some wonderful plans on the market that permit you to choose from them, so long as you stay within certain guidelines.
They are purchased predrawn and certain types of homes are built from them.
The home plans come at a nominal cost in comparison to the hiring or an architect to draw custom plans for a new home.
Builders often purchase the rights to certain home plans to build them in numbers prior to selling them .
Communities are built prior to sale or even being ordered by a client, and when the homes are built they are put on the market at the current market value.
Often these homes are not sold in a timely way, and in some cases the homes will go down markedly in price prior to being purchased.
A good method for a new home owner to find a reasonable price for a new home.
Should you choose instead to build a new home using your own plans, hire a competent architect to design what it is that you want and to offer his or her best guess on how long the completion of the building will take.
Builders are plentiful today as the market for homes is on a marked upsurge.
When you look for a builder find others for whom he has built homes and ask them for their experiences with your builder, in order to prevent problems before they occur.
Many builders will be reputable and work well with the prospective home owner but nightmare stories exist of coming in as much as 30 thousand dollars over budget and taking excessive amounts of time to complete the project at hand, which leaves the home owner effectively homeless should their home have been sold in the interim.
When planning a new home purchase, always check the area in which you plan to build to be certain whether there has existed any problems with the water or sewage, or if in fact flooding is a regular occurrence there.
Working now to prevent future problems will pay off in your ability to enjoy your new home.
For further details, please visit First Release Homes
http://ezinearticles.com/?New-Homes-and-Builders&id=707116
How to Find the Perfect Home
Your home is so much more than a building of brick and stone. It is a huge investment not only financially but emotionally and time wise as well.
To assure that your purchase is a match to what you have dreamed of, there are certain steps that you can take. Sit down and make a list for yourself of what you are thinking of when you see your home in your minds eye.
Is it a pre-built condo, or a pre existing house that your are thinking of.
Do you want a gated community, where security and other benefits are added for your convenience? Preexisting homes are for sale in community builds all the time.
Know in your mind what your perfect home really is where would it be, and what would it look like. Is it a condominium, or is it a two story farm house.
When you can answer all those questions to yourself then you will know what kind of house you are looking for to call home.
How much is too much?
Another consideration will be how much you can legitimately afford to pay for your new home, and how much can you pay each month to provide that home to your family. If you don’t know for certain what kind of payment. You can afford then speak to an expert at the mortgage lenders agency and find out exactly what they believe you can afford based on your paycheck and those homes which are available in your area.
Make certain that your payments leave you something to come and go on. Living your life on a paycheck to paycheck basis isn’t much fun.
Get all your finances in a row before you begin to shop for a home.
Some of the more upscale communities of pre-built homes will be a bargain for you, because you purchase a new home, at the rock bottom price if you get in on the ground floor.
Make an offer on one of these because if you do, then the price is locked in for your new home and can’t be raised even if the contractor spends a bit more to build the home.
Invest your time wisely and seek out more than one home. Check out the pre-built homes, modular homes and pre-constructed ones.
Some buyers of homes will look at only one or two properties before they make a choice and it sometimes turns out to be the wrong choice.
For further details, please visit First Release Homes
http://ezinearticles.com/?How-to-Find-the-Perfect-Home&id=707139
To assure that your purchase is a match to what you have dreamed of, there are certain steps that you can take. Sit down and make a list for yourself of what you are thinking of when you see your home in your minds eye.
Is it a pre-built condo, or a pre existing house that your are thinking of.
Do you want a gated community, where security and other benefits are added for your convenience? Preexisting homes are for sale in community builds all the time.
Know in your mind what your perfect home really is where would it be, and what would it look like. Is it a condominium, or is it a two story farm house.
When you can answer all those questions to yourself then you will know what kind of house you are looking for to call home.
How much is too much?
Another consideration will be how much you can legitimately afford to pay for your new home, and how much can you pay each month to provide that home to your family. If you don’t know for certain what kind of payment. You can afford then speak to an expert at the mortgage lenders agency and find out exactly what they believe you can afford based on your paycheck and those homes which are available in your area.
Make certain that your payments leave you something to come and go on. Living your life on a paycheck to paycheck basis isn’t much fun.
Get all your finances in a row before you begin to shop for a home.
Some of the more upscale communities of pre-built homes will be a bargain for you, because you purchase a new home, at the rock bottom price if you get in on the ground floor.
Make an offer on one of these because if you do, then the price is locked in for your new home and can’t be raised even if the contractor spends a bit more to build the home.
Invest your time wisely and seek out more than one home. Check out the pre-built homes, modular homes and pre-constructed ones.
Some buyers of homes will look at only one or two properties before they make a choice and it sometimes turns out to be the wrong choice.
For further details, please visit First Release Homes
http://ezinearticles.com/?How-to-Find-the-Perfect-Home&id=707139
New Home Communities
A new home community is a neighborhood where the homes are all pre-built to certain specifications.
Each home is probably built to the same floor-plan, and will cost approximately the same amount to purchase.. The neighborhood consists of all new housing so there is not the concern for the neighbors care of their aging home lowering real estate valuations in the area.
New Home communities ar increasingly popular in the United States as home values continue to rise and homes become harder to find for prospective buyers.
One such company in the US which operates new home communities nationally are Anderson homes. Floor plans in these homes will feature a great deal of open floor space, larger areas to help you in entertaining, and most models will feature full basements which remain unfinished until the purchaser finishes them.
These homes are usually pre inspected prior to being put on the market for sale, however they do not have to be so availing yourself of the services of a building inspector might be worth your while.
While most new home communities are respectable places to live which are well built and well warranted, in some cases contractors have used substandard materials with which to build them. This results in a less than perfect new home, which may have problems in many areas after purchase, among them heating, air conditioning or roofing issues.
Take care no matter what type home you purchase to ask the neighbors in the area of new home communities what their experiences have been with their new home, particularly if they’ve lived in the area for any number of months.
Most will be glad to talk with you about their homes if they have had any issues with them and if they are particularly pleased again, they will be pleased to let you know that.
People enjoy discussing the problems that they have in various areas and if they are happy with the house, they will be only too glad to tell you so and tell you what the reasons are they are pleased. While you are discussing their home, a few questions might be in order.
Ask them about plumbing problems and heating or air conditioning issues specifically as well as water pipes and dampness in the basement.
. Find out if they have had problems and if so, did the contractor stand behind his building and make the repairs for the new home owner.
For further details, please visit First Release Homes
http://ezinearticles.com/?New-Home-Communities&id=707126
Each home is probably built to the same floor-plan, and will cost approximately the same amount to purchase.. The neighborhood consists of all new housing so there is not the concern for the neighbors care of their aging home lowering real estate valuations in the area.
New Home communities ar increasingly popular in the United States as home values continue to rise and homes become harder to find for prospective buyers.
One such company in the US which operates new home communities nationally are Anderson homes. Floor plans in these homes will feature a great deal of open floor space, larger areas to help you in entertaining, and most models will feature full basements which remain unfinished until the purchaser finishes them.
These homes are usually pre inspected prior to being put on the market for sale, however they do not have to be so availing yourself of the services of a building inspector might be worth your while.
While most new home communities are respectable places to live which are well built and well warranted, in some cases contractors have used substandard materials with which to build them. This results in a less than perfect new home, which may have problems in many areas after purchase, among them heating, air conditioning or roofing issues.
Take care no matter what type home you purchase to ask the neighbors in the area of new home communities what their experiences have been with their new home, particularly if they’ve lived in the area for any number of months.
Most will be glad to talk with you about their homes if they have had any issues with them and if they are particularly pleased again, they will be pleased to let you know that.
People enjoy discussing the problems that they have in various areas and if they are happy with the house, they will be only too glad to tell you so and tell you what the reasons are they are pleased. While you are discussing their home, a few questions might be in order.
Ask them about plumbing problems and heating or air conditioning issues specifically as well as water pipes and dampness in the basement.
. Find out if they have had problems and if so, did the contractor stand behind his building and make the repairs for the new home owner.
For further details, please visit First Release Homes
http://ezinearticles.com/?New-Home-Communities&id=707126
Viewing Your Prospective Home
When you plan to purchase a home, whether it be a prebuilt one, or a modular home, you will want to inspect it carefully to be certain it is the right home for you and your family.
In consideration of the importance of the decision that you are about to make, nothing is so important as research when choosing to purchase a new home of any kind.
Condos, to modulars to preconstructed gated communities, the home you purchase is a big investment in your lifestyle and your future.
Going to view the home with the right tools is necessary in order to check it thoroughly prior to making an offer on the home.
Be certain you are armed with the right equipment when you go to view homes.Go to see as many as you possibly can in any given weekend so that you can make an informed choice about what you want from a home.
Take a few things with you. Be sure to wear comfy clothing so that climbing about and measuring and checking certain aspects of your newly built or used home is easier than if you were not dressed casually.
Come with your tool kit in tow. Be certain to bring along with you a flashlight: for lighting up a darkened hallway or closet a digital or instant camera for taking those necessary photos to compare later.
A notebook for jotting down your thoughts on the home, or measurements of windows and doorways, to ascertain whether some of yoru furniture will have problems being put inside.
A level, to be certain that floors and ceilings are level and square, to avoid issues with decorating or furniture placement.
A measuring tape so that you can measure windows, doors, room sizes, and other aspects of the home.
When you view the home be certain to open a few cabinet doors, (with permission if the home owner still lives in the home)
Check every possible nook and cranny to be sure that some damage is not hidden, such as water damage in a closet or attic roof.
When you find a home that seems as if it might be for you, be certain to have a contractor, or other home inspector take a hard look at it for you.
Checking the roof, plumbing fixtures and furnaces as well as ductwork may save you a great deal of money at a time in the future.
Most home owners and contractors are honest people with a high level of integrity, but unfortunately some are not.
It is necessary to protect your own interests with regard to a new home purchase.
For further details, please visit First Release Homes
In consideration of the importance of the decision that you are about to make, nothing is so important as research when choosing to purchase a new home of any kind.
Condos, to modulars to preconstructed gated communities, the home you purchase is a big investment in your lifestyle and your future.
Going to view the home with the right tools is necessary in order to check it thoroughly prior to making an offer on the home.
Be certain you are armed with the right equipment when you go to view homes.Go to see as many as you possibly can in any given weekend so that you can make an informed choice about what you want from a home.
Take a few things with you. Be sure to wear comfy clothing so that climbing about and measuring and checking certain aspects of your newly built or used home is easier than if you were not dressed casually.
Come with your tool kit in tow. Be certain to bring along with you a flashlight: for lighting up a darkened hallway or closet a digital or instant camera for taking those necessary photos to compare later.
A notebook for jotting down your thoughts on the home, or measurements of windows and doorways, to ascertain whether some of yoru furniture will have problems being put inside.
A level, to be certain that floors and ceilings are level and square, to avoid issues with decorating or furniture placement.
A measuring tape so that you can measure windows, doors, room sizes, and other aspects of the home.
When you view the home be certain to open a few cabinet doors, (with permission if the home owner still lives in the home)
Check every possible nook and cranny to be sure that some damage is not hidden, such as water damage in a closet or attic roof.
When you find a home that seems as if it might be for you, be certain to have a contractor, or other home inspector take a hard look at it for you.
Checking the roof, plumbing fixtures and furnaces as well as ductwork may save you a great deal of money at a time in the future.
Most home owners and contractors are honest people with a high level of integrity, but unfortunately some are not.
It is necessary to protect your own interests with regard to a new home purchase.
For further details, please visit First Release Homes
Article Source: http://EzineArticles.com/?expert=Hayi_Mansoor
First Time Buyer - Remember These Things
There are a huge number of concerns when you buy a home. If it is the first time you have purchased a property, much of the process will be pretty confusing. In fact, the process does not really get any less confusing with the ever-changing nature of the real estate industry. This is one of the reasons that it is essential to work with a realtor who stays on top of what is happening in this dynamic industry. Only realtors are constantly educating themselves on the evolving realities of the current real estate market. Sellers and buyers only have so much access to information regarding market trends and changes and indeed this info usually comes from a real estate professional.
One thing that most first time buyers are unsure of is the necessary amount for a down payment. Now, depending on the financing options you are considering down payments can be as little as nothing at all or as high as the entire purchase price of the home. However, the latter is hardly ever the case in a world where homes cost a fair bit. Nothing down! Careful, home financing plans where no down payment is required can be chancy. It's better to to go down with between 5 and 10% of the purchase price. Some lender will accept 3% as well. Remember that the lower your down payment amount, the higher your monthly payments are likely to be.
Credit scores are also an important part of this process as your score will dictate the financing options available to you. It is possible to purchase a home with damaged credit. If this applies to you then you may want to consider seeking out a lender that will help you repair your credit before you arrange the actual financing of the home. As stated before, the higher your score, the better the loan programs that will be available to you. Make sure that you take note of every aspect of your home loan. Be sure that you know every clause and aspect of your loan before you sign it, it is your responsibility to be "in the know" about your home loan.
John Mejia is a real estate agent specializing in Birmingham real estate. If you are looking for a new home in Alabama, contact John today or visit the Mejia Group online at http://www.themejiagroup.com.
Article Source: http://EzineArticles.com/?expert=John_Mejia
One thing that most first time buyers are unsure of is the necessary amount for a down payment. Now, depending on the financing options you are considering down payments can be as little as nothing at all or as high as the entire purchase price of the home. However, the latter is hardly ever the case in a world where homes cost a fair bit. Nothing down! Careful, home financing plans where no down payment is required can be chancy. It's better to to go down with between 5 and 10% of the purchase price. Some lender will accept 3% as well. Remember that the lower your down payment amount, the higher your monthly payments are likely to be.
Credit scores are also an important part of this process as your score will dictate the financing options available to you. It is possible to purchase a home with damaged credit. If this applies to you then you may want to consider seeking out a lender that will help you repair your credit before you arrange the actual financing of the home. As stated before, the higher your score, the better the loan programs that will be available to you. Make sure that you take note of every aspect of your home loan. Be sure that you know every clause and aspect of your loan before you sign it, it is your responsibility to be "in the know" about your home loan.
John Mejia is a real estate agent specializing in Birmingham real estate. If you are looking for a new home in Alabama, contact John today or visit the Mejia Group online at http://www.themejiagroup.com.
Article Source: http://EzineArticles.com/?expert=John_Mejia
House Hunting Tips
So you are thinking about buying a home huh? If you are a first-time home buyer, there are some important issues to take into consideration when beginning the journey of house-hunting. It is very easy to be bamboozled if you are someone that is young and single or even a married couple buying that first home if you don’t have someone that is very knowledgeable of homes and the pitfalls to avoid when buying. All too often people buy into a situation where a home has many problems that were unseen or don’t reveal themselves until well after the home is purchased. Unless maybe you are having a new home built, when you are house hunting, definitely go in with a “buyer beware” attitude with each and every home. If you are using a buyer’s agent, don’t count on them to weed out the pitfall homes for you. Buyer’s agents may appear to be on your side, but all they really want to do is get you to buy a home as quickly as possible so they can get that commission check and move on. About the only thing they are really good for is to use as a mediator between the buyer and seller when making an offer on buying a home. They will draft up the paperwork and do the talking for you. So here are some important suggestions to consider when buying a home:
1. The first thing you want to do is get a mortgage pre-approval letter from a mortgage lender. Find one with a good interest rate that you might use if taking out a mortgage. Just because they provide you with a pre-approval letter doesn’t mean you have to use them as a lender. But what it does mean, is that you are good for that loan amount and they will be ready right away to provide you with at a moments notice. In fact, most realestate agents won’t work with you if you don’t have a mortgage pre-approval. All too many times, people put offers on homes, but in the end are denied a mortgage anyhow. This wastes everyone’s time.
2. Get a buyer’s agent from a reputable realestate company. They are there to search out homes for you and then arrange for you to look at the home. They can arrange for the seller to vacate the home while you look through it. They will also mediate between you and the seller when it comes time to put down an offer. Most likely, the seller will have a seller’s agent.
3. This is a very important thing to remember: If you are buying a home that is not new, then about 85% of the time, the people that are selling it are definitely moving out for a reason. The other 15% are people that are either retirement age that are scaling down, people that have had their jobs relocated, or people who like the house but have come into some money and are simply moving “up”. From what I have found, the usual case is people put their homes up for sale because there is something that they don’t like about the home. The home might back up to a very busy street. I saw lots of those types of homes when I was home shopping. There could be major foundation problems. Heating and cooling problems. A bad home layout. A neighborhood with bad neighbors. Water issues around the foundation. The list goes on and on. It is issues like this that turn house hunting into a 3,4,5, or 6 month journey. You might look at 50 homes before you buy one.
4. Do not ever buy the first home you see. You have definitely got to have your agent show you at least several more homes if the situation arises where the first home you see is the one you want.
5. If you see a home you like that is within your price range, while you are looking through the home, definitely be looking for any problems as well. It is too easy to be distracted away from any problems or potential problems if you are too pre-occupied with looking at the home’s amenities. I will explain what problems to look for further down the page.
6. Because of the issues I mentioned above, such as the “85%” issue, defines a situation that I call a “hot house”. A “hot house” is a house that falls into the “15%” category of home sellers. These are homes that are priced reasonably, are in a good location, have a good layout, have been kept up very well, and are just a great buy. These are the types of homes that are put up on the market on a Friday, and sell by Saturday. Homes like this are not only nice to live in and easy to maintain, but are easy to sell if the time comes where you might want to move into another home one day. Typically, the selling agent of these types of homes already knows it is a “hot house”. Seller’s agent are also “buyer’s agents” as well. Being that they know it is a “hot house”, they will go find their own buyer for it and ignore your own buyer’s agent even if you want to make an offer on the house. They do this because if they can find their own buyer, they get all of the commission on the home. Typically, if a buyer’s agent is mediating with a seller’s agent, the buyer’s agent will get 2%-3% commission and the seller’s agent will get the other 2%-3% commission. The commission is based on the final selling price of the home. A selling agent that finds a buyer on his own will act as both the selling and buying agent. Therefore, he or she will get all of the 4%-7% commission of the home. So there is some conflict of interest when it comes to buying a home. Hopefully, maybe, the buyer’s agent that you hire is a seller’s agent as well. He or she might have a “hot house” they can sell you that you will get “first dibs” on.
7. Now, let’s say you find a home that you like. Check to make sure all the interior doors of the home close without rubbing on the door frames. This is an indication of foundation issues. Sometimes people will get deceptive and “sand down” the top portion of the door that rubs on the frame. So just because doors might close ok, there could still be foundation issues. Definitely go and look in the basement. Look for cracks in the wall. Look for signs of water leakage. Look for major cracking of the basement floor. Any of these issues could mean bad news. If the basement has a “dingey” feel or a moldy smell to it, stay away from the house.
8. Take note if the home’s interior is “up to date” and that the owners keep it cleaned and well maintained. If it appears like the owners have neglected the home’s maintenance, then that always means that they’ve neglected everything in the home. Problems that won’t present themselves until later.
9. Definitely take a look at the home’s exterior. Check to make sure none of the window sills are rotted. Check for any wood rot around the exterior of the home. Also find out how old the roof is.
10. Do not make an offer on a home without a seller’s disclosure. By law, the sellers are to fill out a form called a disclosure to answer questions about the home and leave this in plain view of the buyer when they are looking at the home. Read the disclosure. It will give answers to questions such as how old the roof is, whether or not they have foundation issues, termite issues, rodents, or any other problems with the house that even might affect the home insurance premiums. For instance, a home that I had bought had two layers of roofing on it. The first layer was never removed when the second new roof was put on. It was done this way because it was “cheaper”, but insurance companies will charge a slightly higher premium because it will cost more to replace the roof if the roof is ever damaged. It takes more labor to remove two roof layers than one.
11. Only take seller’s disclosures with a grain of salt. People do lie, or sugar-coat things to try and sell the house. Once you’ve decided to make an offer on the house, have a home inspection done. Make the offer on the house contingent upon that the home inspection comes out clean. You will have to hire a home inspector to do this. They typically charge $250 - $450 for an inspection. Do not ever use an inspector that the realestate agent recommends. These inspectors will be working for the interest of the agent, and not yours. However, that doesn’t mean that the inspector that you found on your own still won’t be working for the interest of the realestate agent anyways. He might want to have that realestate agent use his name for recommendations. Home inspectors are like everyone else. They are in the business to make money and get their name out there.
12. If you are able, walk around with the inspector while he is inspecting the home. He will point things out to you. Do NOT let the realestate agent distract you during this time. The agent will be present also while the inspector is performing the inspection. After the inspection, review the report. If something minor needs fixing, then have a new contract offer written up to have whatever issues were found corrected. If any major issues were found, such as foundation issues, termites, etc., then avoid the house. Better to have paid an inspector $ if it means saving you from buying a money-pit house.
13. Lastly, if you had an inspection, and something major turns up, but you still really really like the house and you don’t want to walk away from it, then just about anything can be fixed these days. Even major foundation issues can be fixed in this day and age. You can re-adjust your offer to include in the price that the seller pay for those issues to be fixed. Or, either reduce your offer drastically and then have extra money escrowed or take out a home equity line of credit and have the issue repaired. Also, upon putting down an offer, ask your realestate agent for a market comp. A market comp is a report of final selling prices of homes in the area that you are buying. You can compare the prices with the home’s price that you are looking at. It will give you an idea if the home is being priced appropriately. And do check out the county’s appraisal of the home as well. If a house is in tip-top shape and has had some remodeling and updating done over the years, then typically it might go for $15K - $20K over county appraisal. All too many times home owners will try and get dollar for dollar return on their improvements. This is a no-no. Home owners should not expect dollar for dollar return on improvements. At most, maybe a 60% return. But usually only about a 25% return. Depends on how hot the market is. The situation you do not want to walk into is to pay full price for a home, (county appraisal and above), and then find out that you have to shell out more $ to make repairs. The most important thing, is to educate yourself on homes or to at least have someone that you know such as a parent, friend, or relative that is knowledgeable about homes go home-shopping with you. You can’t fully count on the realestate agent nor the inspector to ensure that what you buy is within your best interest. I urge everyone to go buy a good book on home buying and read it before buying that first home. Or even second home for that matter. Too much “bamboozling” going on these days.
Visit http://www.IAmSoOverMe.com to read more!
1. The first thing you want to do is get a mortgage pre-approval letter from a mortgage lender. Find one with a good interest rate that you might use if taking out a mortgage. Just because they provide you with a pre-approval letter doesn’t mean you have to use them as a lender. But what it does mean, is that you are good for that loan amount and they will be ready right away to provide you with at a moments notice. In fact, most realestate agents won’t work with you if you don’t have a mortgage pre-approval. All too many times, people put offers on homes, but in the end are denied a mortgage anyhow. This wastes everyone’s time.
2. Get a buyer’s agent from a reputable realestate company. They are there to search out homes for you and then arrange for you to look at the home. They can arrange for the seller to vacate the home while you look through it. They will also mediate between you and the seller when it comes time to put down an offer. Most likely, the seller will have a seller’s agent.
3. This is a very important thing to remember: If you are buying a home that is not new, then about 85% of the time, the people that are selling it are definitely moving out for a reason. The other 15% are people that are either retirement age that are scaling down, people that have had their jobs relocated, or people who like the house but have come into some money and are simply moving “up”. From what I have found, the usual case is people put their homes up for sale because there is something that they don’t like about the home. The home might back up to a very busy street. I saw lots of those types of homes when I was home shopping. There could be major foundation problems. Heating and cooling problems. A bad home layout. A neighborhood with bad neighbors. Water issues around the foundation. The list goes on and on. It is issues like this that turn house hunting into a 3,4,5, or 6 month journey. You might look at 50 homes before you buy one.
4. Do not ever buy the first home you see. You have definitely got to have your agent show you at least several more homes if the situation arises where the first home you see is the one you want.
5. If you see a home you like that is within your price range, while you are looking through the home, definitely be looking for any problems as well. It is too easy to be distracted away from any problems or potential problems if you are too pre-occupied with looking at the home’s amenities. I will explain what problems to look for further down the page.
6. Because of the issues I mentioned above, such as the “85%” issue, defines a situation that I call a “hot house”. A “hot house” is a house that falls into the “15%” category of home sellers. These are homes that are priced reasonably, are in a good location, have a good layout, have been kept up very well, and are just a great buy. These are the types of homes that are put up on the market on a Friday, and sell by Saturday. Homes like this are not only nice to live in and easy to maintain, but are easy to sell if the time comes where you might want to move into another home one day. Typically, the selling agent of these types of homes already knows it is a “hot house”. Seller’s agent are also “buyer’s agents” as well. Being that they know it is a “hot house”, they will go find their own buyer for it and ignore your own buyer’s agent even if you want to make an offer on the house. They do this because if they can find their own buyer, they get all of the commission on the home. Typically, if a buyer’s agent is mediating with a seller’s agent, the buyer’s agent will get 2%-3% commission and the seller’s agent will get the other 2%-3% commission. The commission is based on the final selling price of the home. A selling agent that finds a buyer on his own will act as both the selling and buying agent. Therefore, he or she will get all of the 4%-7% commission of the home. So there is some conflict of interest when it comes to buying a home. Hopefully, maybe, the buyer’s agent that you hire is a seller’s agent as well. He or she might have a “hot house” they can sell you that you will get “first dibs” on.
7. Now, let’s say you find a home that you like. Check to make sure all the interior doors of the home close without rubbing on the door frames. This is an indication of foundation issues. Sometimes people will get deceptive and “sand down” the top portion of the door that rubs on the frame. So just because doors might close ok, there could still be foundation issues. Definitely go and look in the basement. Look for cracks in the wall. Look for signs of water leakage. Look for major cracking of the basement floor. Any of these issues could mean bad news. If the basement has a “dingey” feel or a moldy smell to it, stay away from the house.
8. Take note if the home’s interior is “up to date” and that the owners keep it cleaned and well maintained. If it appears like the owners have neglected the home’s maintenance, then that always means that they’ve neglected everything in the home. Problems that won’t present themselves until later.
9. Definitely take a look at the home’s exterior. Check to make sure none of the window sills are rotted. Check for any wood rot around the exterior of the home. Also find out how old the roof is.
10. Do not make an offer on a home without a seller’s disclosure. By law, the sellers are to fill out a form called a disclosure to answer questions about the home and leave this in plain view of the buyer when they are looking at the home. Read the disclosure. It will give answers to questions such as how old the roof is, whether or not they have foundation issues, termite issues, rodents, or any other problems with the house that even might affect the home insurance premiums. For instance, a home that I had bought had two layers of roofing on it. The first layer was never removed when the second new roof was put on. It was done this way because it was “cheaper”, but insurance companies will charge a slightly higher premium because it will cost more to replace the roof if the roof is ever damaged. It takes more labor to remove two roof layers than one.
11. Only take seller’s disclosures with a grain of salt. People do lie, or sugar-coat things to try and sell the house. Once you’ve decided to make an offer on the house, have a home inspection done. Make the offer on the house contingent upon that the home inspection comes out clean. You will have to hire a home inspector to do this. They typically charge $250 - $450 for an inspection. Do not ever use an inspector that the realestate agent recommends. These inspectors will be working for the interest of the agent, and not yours. However, that doesn’t mean that the inspector that you found on your own still won’t be working for the interest of the realestate agent anyways. He might want to have that realestate agent use his name for recommendations. Home inspectors are like everyone else. They are in the business to make money and get their name out there.
12. If you are able, walk around with the inspector while he is inspecting the home. He will point things out to you. Do NOT let the realestate agent distract you during this time. The agent will be present also while the inspector is performing the inspection. After the inspection, review the report. If something minor needs fixing, then have a new contract offer written up to have whatever issues were found corrected. If any major issues were found, such as foundation issues, termites, etc., then avoid the house. Better to have paid an inspector $ if it means saving you from buying a money-pit house.
13. Lastly, if you had an inspection, and something major turns up, but you still really really like the house and you don’t want to walk away from it, then just about anything can be fixed these days. Even major foundation issues can be fixed in this day and age. You can re-adjust your offer to include in the price that the seller pay for those issues to be fixed. Or, either reduce your offer drastically and then have extra money escrowed or take out a home equity line of credit and have the issue repaired. Also, upon putting down an offer, ask your realestate agent for a market comp. A market comp is a report of final selling prices of homes in the area that you are buying. You can compare the prices with the home’s price that you are looking at. It will give you an idea if the home is being priced appropriately. And do check out the county’s appraisal of the home as well. If a house is in tip-top shape and has had some remodeling and updating done over the years, then typically it might go for $15K - $20K over county appraisal. All too many times home owners will try and get dollar for dollar return on their improvements. This is a no-no. Home owners should not expect dollar for dollar return on improvements. At most, maybe a 60% return. But usually only about a 25% return. Depends on how hot the market is. The situation you do not want to walk into is to pay full price for a home, (county appraisal and above), and then find out that you have to shell out more $ to make repairs. The most important thing, is to educate yourself on homes or to at least have someone that you know such as a parent, friend, or relative that is knowledgeable about homes go home-shopping with you. You can’t fully count on the realestate agent nor the inspector to ensure that what you buy is within your best interest. I urge everyone to go buy a good book on home buying and read it before buying that first home. Or even second home for that matter. Too much “bamboozling” going on these days.
Visit http://www.IAmSoOverMe.com to read more!
Article Source: http://EzineArticles.com/?expert=Matthew_Young
So, You Decided to Buy a Home
Congratulations on your decision to become a homeowner. Buying a home for most people is the most important investment decision they will ever make. Having a little knowledge of how the real estate buying process works can give you the confidence you need to make good real estate decisions for you and your family. This short article is intended to give you a brief overview of how to best work with real estate agents and mortgage brokers so you get the best deal possible on your home purchase.
Over 80% of home buyers begin their home search online. The Internet will provide you with just about every home for sale in your area including...
* Homes listed in the local MLS along with multiple property photos and virtual tours
* For Sale By Owners (FSBO's) websites contains homes for sale not listed with a real estate broker
* New home builders in your area with floor plans and models for you to look over
Get online and start searching for homes in your area that match your criteria. Get a solid idea of the market values in the neighborhoods and subdivisions you wish to live. The more familiar you are about market values in your town, the better idea you will have regarding areas you can reasonably afford.
The next step after you get a grip on market values is to locate a Realtor in the local area. Not all Realtors are made equally! Find an agent who seems most qualified and knowledgable about the area of town you plan on buying. Make sure the Realtor you choose is a people person. If you do not get along with your Realtor, most likely no one else in the transaction will either and it could cost you.
Some people are scared to death when it comes to dealing with salespeople. They would rather just talk directly to the seller's Realtor than finding a Realtor to work for them as a buyer's agent.. This is probably one of the most common mistakes home buyers make. When you purchase a home through a listing agent, that agent represents the seller and owes all loyalty to the seller. They can merely work "with" you, not "for" you. The commission paid to the listing agent has already been negotiated by the seller and listing agent. You will not get a discount! Most likely you will end up paying the price the listing agent tells you to pay!
Having a buyer's agent, commonly referred to as buyer representation, costs the home buyer nothing! When the buyer secures buyer representation, the listing agent typically offers half of the negotiated commission, per listing agreement, to buyer's agent. A buyer's agent can offer many services to their "buyer clients" that a listing agent will not offer including:
* Unbiased opinion on market value of property. Most seller's agent will cherry pick the recent comparable sales in order to make the property look much more attractive.
* Historic information about the property including "true" days on market, price changes, etc.
* Advice and opinions about the list price, property condition, and market conditions. A seller's agent can only offer you facts and must disclose any known material defects. They can not offer you opinions or advice!
Real estate finance can be very confusing. With no strict government regulations, the mortgage industry has thousands of lenders quoting prospective borrowers a wide range of interest rates. Two words that you MUST remember when selecting a home loan is: SHOP AROUND!!! You may have heard that pulling your credit report numerous times will hurt your credit scores. While this is true, an exception to the rule is pulling multiple reports while applying for a mortgage loan within a 2 week period will be treated as one inquiry. Talk to a few mortgage brokers, and your bank or credit union. Your goal is to find a mortgage with the best interest rate and best loan terms. Look for low mortgage fees or no mortgage fees. The fees your broker is charging you will show on the Truth-in-Lending disclosures the lender provides, as required by federal law. Fees such as processing fee, underwriting fee, and warehousing fee are also called "junk fees" and are negotiable. Most brokers also charge a 1-2% loan origination fee (also negotiable). Shop around and secure the best financing currently available. Your lender will provide you and your Realtor a pre-approval letter.
*Just because you get a pre-approval letter does not tie you to that lender or broker. You are still free to shop around during the home buying process until you sign your loan papers at closing.
Now you have free buyer's representation, a pre-approval offer on a fantastic loan and are knowledgeable about market values in the area you plan to buy. With all your preparation you are now ready to view homes and make an offer on any great deals you see out there in your marketplace!
Ronnie Bredahl is broker/owner of Austin Referral Realty, Inc. in Austin, Texas. Search homes for sale in Austin and surrounding areas. For more information about Austin Real Estate visit: http://www.austinreferralrealty.com/
Article Source: http://EzineArticles.com/?expert=Ronnie_Bredahl
Over 80% of home buyers begin their home search online. The Internet will provide you with just about every home for sale in your area including...
* Homes listed in the local MLS along with multiple property photos and virtual tours
* For Sale By Owners (FSBO's) websites contains homes for sale not listed with a real estate broker
* New home builders in your area with floor plans and models for you to look over
Get online and start searching for homes in your area that match your criteria. Get a solid idea of the market values in the neighborhoods and subdivisions you wish to live. The more familiar you are about market values in your town, the better idea you will have regarding areas you can reasonably afford.
The next step after you get a grip on market values is to locate a Realtor in the local area. Not all Realtors are made equally! Find an agent who seems most qualified and knowledgable about the area of town you plan on buying. Make sure the Realtor you choose is a people person. If you do not get along with your Realtor, most likely no one else in the transaction will either and it could cost you.
Some people are scared to death when it comes to dealing with salespeople. They would rather just talk directly to the seller's Realtor than finding a Realtor to work for them as a buyer's agent.. This is probably one of the most common mistakes home buyers make. When you purchase a home through a listing agent, that agent represents the seller and owes all loyalty to the seller. They can merely work "with" you, not "for" you. The commission paid to the listing agent has already been negotiated by the seller and listing agent. You will not get a discount! Most likely you will end up paying the price the listing agent tells you to pay!
Having a buyer's agent, commonly referred to as buyer representation, costs the home buyer nothing! When the buyer secures buyer representation, the listing agent typically offers half of the negotiated commission, per listing agreement, to buyer's agent. A buyer's agent can offer many services to their "buyer clients" that a listing agent will not offer including:
* Unbiased opinion on market value of property. Most seller's agent will cherry pick the recent comparable sales in order to make the property look much more attractive.
* Historic information about the property including "true" days on market, price changes, etc.
* Advice and opinions about the list price, property condition, and market conditions. A seller's agent can only offer you facts and must disclose any known material defects. They can not offer you opinions or advice!
Real estate finance can be very confusing. With no strict government regulations, the mortgage industry has thousands of lenders quoting prospective borrowers a wide range of interest rates. Two words that you MUST remember when selecting a home loan is: SHOP AROUND!!! You may have heard that pulling your credit report numerous times will hurt your credit scores. While this is true, an exception to the rule is pulling multiple reports while applying for a mortgage loan within a 2 week period will be treated as one inquiry. Talk to a few mortgage brokers, and your bank or credit union. Your goal is to find a mortgage with the best interest rate and best loan terms. Look for low mortgage fees or no mortgage fees. The fees your broker is charging you will show on the Truth-in-Lending disclosures the lender provides, as required by federal law. Fees such as processing fee, underwriting fee, and warehousing fee are also called "junk fees" and are negotiable. Most brokers also charge a 1-2% loan origination fee (also negotiable). Shop around and secure the best financing currently available. Your lender will provide you and your Realtor a pre-approval letter.
*Just because you get a pre-approval letter does not tie you to that lender or broker. You are still free to shop around during the home buying process until you sign your loan papers at closing.
Now you have free buyer's representation, a pre-approval offer on a fantastic loan and are knowledgeable about market values in the area you plan to buy. With all your preparation you are now ready to view homes and make an offer on any great deals you see out there in your marketplace!
Ronnie Bredahl is broker/owner of Austin Referral Realty, Inc. in Austin, Texas. Search homes for sale in Austin and surrounding areas. For more information about Austin Real Estate visit: http://www.austinreferralrealty.com/
Article Source: http://EzineArticles.com/?expert=Ronnie_Bredahl
Wednesday, August 29, 2007
Home Buying Tip: How to Research Neighborhoods (and Why You Should)
This home buying tip will give you the tools you need to conduct neighborhood research in advance of buying a home.
The Happiness Factor
A home is only as good as the neighborhood it's in. If you find a home that meets most of your other home-buying requirements but resides in a neighborhood you hate, you'll never be truly happy.
The Resale Factor
The same thing applies to the resale value of your home. A nice home in a less-than-desirable neighborhood becomes a less-than-desirable home. In other words, the value of your home is greatly determined by the area that surrounds it.
What Makes a Good Neighborhood?
Here are some of the ingredients that make up a good neighborhood. You'll have to evaluate each item based on your own home-buying priorities:
* Safe
* Close to work, school and shopping
* Closet to good healthcare
* Clean and attractive
* Conducive to your lifestyle and interests
* Aesthetically pleasing
* Well maintained
How to Research Neighborhoods
The Internet is a great tool for conducting neighborhood research. It will help you determine which areas are worth visiting and which ones aren't. Here are some online resources to get you started:
* In the Real Estate section of Yahoo.com, you'll find a variety of neighborhood research tools. This makes a great starting point. Just enter the name of a town (or a zip code), and you'll get back a series of topics for further exploration.
* You'll also find some neighborhood research tools at Realtor.com, BestPlaces.net, and monstermoving.monster.com.
* Lastly, conduct some general searches on the Internet. You can find interesting resources by adding keywords like schools, crime rate, taxes, best neighborhoods, etc.
Make a Neighborhood Checklist
You probably have a home-buying checklist already. But what about the neighborhood? Is it on your checklist? If not, you should it add it, or even create a separate checklist just for neighborhoods.
Some items to include on your list:
* What's your first impression?
* Does it "feel" like a place you'd like to live?
* How are the homes and yards maintained?
* How are the common areas and streets maintained?
* Do people seem friendly?
* How close is it to school and/or work?
* Is it quiet or noisy?
* Access to major roadways?
* Access to shopping, dining, etc.?
Conclusion
A house is part of the neighborhood that surrounds it, and vice versa. So keep this home buying tip in mind: Research neighborhoods as thoroughly as you would research the home itself.
* Copyright 2006, Brandon Cornett. You may republish this article if you keep the byline and author's note, and also leave the hyperlinks active.
Learn more!
This home buying tip was brought to you by HomeBuyingInstitute.com, the Internet's largest library of home buying advice. Increase your home buying intelligence by visiting: http://www.homebuyinginstitute.com!
Article Source: http://EzineArticles.com/?expert=Brandon_Cornett
The Happiness Factor
A home is only as good as the neighborhood it's in. If you find a home that meets most of your other home-buying requirements but resides in a neighborhood you hate, you'll never be truly happy.
The Resale Factor
The same thing applies to the resale value of your home. A nice home in a less-than-desirable neighborhood becomes a less-than-desirable home. In other words, the value of your home is greatly determined by the area that surrounds it.
What Makes a Good Neighborhood?
Here are some of the ingredients that make up a good neighborhood. You'll have to evaluate each item based on your own home-buying priorities:
* Safe
* Close to work, school and shopping
* Closet to good healthcare
* Clean and attractive
* Conducive to your lifestyle and interests
* Aesthetically pleasing
* Well maintained
How to Research Neighborhoods
The Internet is a great tool for conducting neighborhood research. It will help you determine which areas are worth visiting and which ones aren't. Here are some online resources to get you started:
* In the Real Estate section of Yahoo.com, you'll find a variety of neighborhood research tools. This makes a great starting point. Just enter the name of a town (or a zip code), and you'll get back a series of topics for further exploration.
* You'll also find some neighborhood research tools at Realtor.com, BestPlaces.net, and monstermoving.monster.com.
* Lastly, conduct some general searches on the Internet. You can find interesting resources by adding keywords like schools, crime rate, taxes, best neighborhoods, etc.
Make a Neighborhood Checklist
You probably have a home-buying checklist already. But what about the neighborhood? Is it on your checklist? If not, you should it add it, or even create a separate checklist just for neighborhoods.
Some items to include on your list:
* What's your first impression?
* Does it "feel" like a place you'd like to live?
* How are the homes and yards maintained?
* How are the common areas and streets maintained?
* Do people seem friendly?
* How close is it to school and/or work?
* Is it quiet or noisy?
* Access to major roadways?
* Access to shopping, dining, etc.?
Conclusion
A house is part of the neighborhood that surrounds it, and vice versa. So keep this home buying tip in mind: Research neighborhoods as thoroughly as you would research the home itself.
* Copyright 2006, Brandon Cornett. You may republish this article if you keep the byline and author's note, and also leave the hyperlinks active.
Learn more!
This home buying tip was brought to you by HomeBuyingInstitute.com, the Internet's largest library of home buying advice. Increase your home buying intelligence by visiting: http://www.homebuyinginstitute.com!
Article Source: http://EzineArticles.com/?expert=Brandon_Cornett
Basic Home Buying Tips
This is intended to be a bit of a primer for the first-time home buyer. Buying a home is a huge decision and not an easy one to make the first time. The home purchase process can be fraught with pitfalls that a new buyer may never see coming, so proper planning and prep is essential. Let's try breaking this process up into 3 parts; financial, shopping and moving. Let's also look at each in turn and see if we can't figure out a good set of steps to follow that can guide a new buyer to a successful home purchase.
Financial - Financially speaking this is going to be huge. Unlike anything you have ever done actually. Buying a home is something that will directly involve every last aspect of your financial life and is based entirely on your credit score. If you are unsure what yours is then now is the time to find out. There could be things affecting your score that may keep you from getting a mortgage and those will need to be cleared up immediately. Then you will need a fully pre-approved mortgage so that you can begin the second step.
Shopping - This is the fun step as you now get to go out and shop for homes. Yes, you get to be the finicky buyer!Now, be careful in your shopping, remember you will have a set amount of money to be working with and setting your standards too high may result in disappointment. Be reasonable about what you actually need. And don't bet the whole lot on one home. This really is the fun part of the process so if you find something you like, make an offer!
Moving - It' always best to start getting really for this step a long time beforehand as picking up an entire life and moving it any distance is time consuming and stressful and should be done with the utmost of care and planning. You will be fairly exhausted at this point but you may find that you are simply running on excitement, especially as the possession date grows closer. Pack by room and this will make it easier to set things up in the new home.
This list is pretty basic but it is something that you can use as the basis for a strong and informed home purchase. Make any changes to the process that you feel necessary after all this is your life and future that are on the line. As you go you can refine and change the list to suit your needs, just remember that this is a process with aspects that will not change.
Lee Cameron is a professional REALTOR® serving the Orlando real estate market. Lee has consistently proven his talent and knowledge in the real estate business and is known to his flair the business and the care with which he treats his clients. For more info on homes & properties in Orlando contact Lee today.
Article Source: http://EzineArticles.com/?expert=Lee_Cameron
Financial - Financially speaking this is going to be huge. Unlike anything you have ever done actually. Buying a home is something that will directly involve every last aspect of your financial life and is based entirely on your credit score. If you are unsure what yours is then now is the time to find out. There could be things affecting your score that may keep you from getting a mortgage and those will need to be cleared up immediately. Then you will need a fully pre-approved mortgage so that you can begin the second step.
Shopping - This is the fun step as you now get to go out and shop for homes. Yes, you get to be the finicky buyer!Now, be careful in your shopping, remember you will have a set amount of money to be working with and setting your standards too high may result in disappointment. Be reasonable about what you actually need. And don't bet the whole lot on one home. This really is the fun part of the process so if you find something you like, make an offer!
Moving - It' always best to start getting really for this step a long time beforehand as picking up an entire life and moving it any distance is time consuming and stressful and should be done with the utmost of care and planning. You will be fairly exhausted at this point but you may find that you are simply running on excitement, especially as the possession date grows closer. Pack by room and this will make it easier to set things up in the new home.
This list is pretty basic but it is something that you can use as the basis for a strong and informed home purchase. Make any changes to the process that you feel necessary after all this is your life and future that are on the line. As you go you can refine and change the list to suit your needs, just remember that this is a process with aspects that will not change.
Lee Cameron is a professional REALTOR® serving the Orlando real estate market. Lee has consistently proven his talent and knowledge in the real estate business and is known to his flair the business and the care with which he treats his clients. For more info on homes & properties in Orlando contact Lee today.
Article Source: http://EzineArticles.com/?expert=Lee_Cameron
Home Buying Tip: How to Automate Google for Easier House Hunting
If you're preparing to buy a home (and especially if you're relocating to a new city), this home buying tip will simplify your research and save you time.
Home Buying Requires Research -- Lots of It
It pays to know as much as possible about the real estate market where you plan to buy a home: market trends, new construction, employment news, zoning and taxes ... you should keep up with these developments and more.
But with so many other steps in the home buying process, how do you find time to sit in front of the computer researching these topics? There just aren't enough hours in the day.
Automate the Process
Here's a way to automate the real estate research process. It's called Google Alerts, and it allows you to send Google's robotic web crawlers on research missions of your choosing.
Using Google Alerts, you can enter a key phrase (like "buying a home in Dallas" or "Dallas real estate news") and then be notified by email whenever Google finds a new page with that phrase. Many of the notifications will be the result of press releases and other news distributed online. So it's an easy way to stay informed about real estate developments in your specified city or town.
To get the most benefit, set Google Alerts as far in advance of your expected buying date as possible. You should also include variations of your key phrase for maximum coverage.
Benefits of Using Google Alerts:
* Saves you time and energy.
* Keeps you informed about real estate developments.
* Costs nothing but a few minutes of your time.
Try it today. Just visit Google's website and click on the "more" link. Next, click on the "Alerts" icon and fill in the information they request. Presto ... you've got your own robotic research buddy!
* Copyright 2006, Brandon Cornett. You may republish this article (unaltered) provided you keep the byline and author's note. Please leave hyperlinks intact.
About the Author
Brandon Cornett is the editor of HomeBuyingInstitute.com, one of the Internet's largest libraries of home buying tips and articles. Put this knowledge to use by visiting http://www.HomeBuyingInstitute.com.
Home Buying Requires Research -- Lots of It
It pays to know as much as possible about the real estate market where you plan to buy a home: market trends, new construction, employment news, zoning and taxes ... you should keep up with these developments and more.
But with so many other steps in the home buying process, how do you find time to sit in front of the computer researching these topics? There just aren't enough hours in the day.
Automate the Process
Here's a way to automate the real estate research process. It's called Google Alerts, and it allows you to send Google's robotic web crawlers on research missions of your choosing.
Using Google Alerts, you can enter a key phrase (like "buying a home in Dallas" or "Dallas real estate news") and then be notified by email whenever Google finds a new page with that phrase. Many of the notifications will be the result of press releases and other news distributed online. So it's an easy way to stay informed about real estate developments in your specified city or town.
To get the most benefit, set Google Alerts as far in advance of your expected buying date as possible. You should also include variations of your key phrase for maximum coverage.
Benefits of Using Google Alerts:
* Saves you time and energy.
* Keeps you informed about real estate developments.
* Costs nothing but a few minutes of your time.
Try it today. Just visit Google's website and click on the "more" link. Next, click on the "Alerts" icon and fill in the information they request. Presto ... you've got your own robotic research buddy!
* Copyright 2006, Brandon Cornett. You may republish this article (unaltered) provided you keep the byline and author's note. Please leave hyperlinks intact.
About the Author
Brandon Cornett is the editor of HomeBuyingInstitute.com, one of the Internet's largest libraries of home buying tips and articles. Put this knowledge to use by visiting http://www.HomeBuyingInstitute.com.
Low-Income Home Buying Programs Explained
A low-income home buying program is any program that helps low-income buyers qualify for a mortgage loan and purchase a home. In other words, it's a program designed to assist home buyers who might not otherwise qualify for a loan.
Most low-income home buying programs are sponsored or insured by the government in some way, such as the programs listed below.
Freddie Mac and Fannie Mae
Freddie Mac and Fannie Mae are private corporations sponsored by the U.S. government. Both organizations indirectly help low- to middle-income families purchase homes, and in similar ways.
Freddie Mac
Freddie Mac is the Federal Home Loan Mortgage Corporation. This organization was chartered by Congress in 1970. Freddie Mac supports the secondary mortgage market by purchasing residential mortgage loans and reselling them to investors on Wall Street. This increases the availability and affordability of home loans for low- and middle-income Americans.
Learn more at www.FreddieMac.com
Fannie Mae
Fannie Mae is short for Federal National Mortgage Association (FNMA). Congress chartered this organization in 1938. According to their website, Fannie Mae "provides financial products and services that make it possible for low-, moderate-, and middle-income families to buy homes of their own."
Learn more at www.FannieMae.com
Federal Housing Authority
The Federal Housing Authority (FHA) also supports low-income home buying in the U.S. The FHA was created as part of The National Housing Act of 1934. The FHA supports the home financing industry by insuring mortgages. This in turn helps low-income home buyers qualify for mortgage loans they might not otherwise qualify for.
Learn more at www.FHA.gov
Veteran's Administration Home Loans
The Veteran's Administration (VA) helps low-income home buyers (and all home buyers, for that matter) by guaranteeing loans made by mortgage lenders. The VA does not actually make direct loans. The VA home loan program is reserved for military veterans and their spouses. Applicants to the program must obtain a Certificate of Eligibility that they will in turn present to their mortgage lender.
Learn more at www.homeloans.va.gov
Rural Housing Authority
The Rural Housing Authority (RHA) is another government organization that can assist low-income home buyers in certain situations. The RHA is part of the United States Department of Agriculture (USDA). Unlike the organizations mentioned previously, the RHA actually makes direct loans to home buyers, among other things. They also guarantee regular commercial loans for home buyers in rural areas.
Learn more at www.rurdev.usda.gov/rhs
State-Sponsored Programs
In addition to federal programs, there are many low-income home buying programs offered by state governments. An example would be the Michigan State Housing Development Authority, which "makes low interest mortgage loans available through [their] network of experienced lenders." Many other states offer similar programs. There are far too many state programs to list in this article, but you can learn more about them by searching online for home buying programs in your state.
* Copyright 2007, Brandon Cornett. You may republish this article online if you keep the author's byline and active hyperlinks below.
Brandon Cornett is the publisher of Mortgage Refinance Advice, an educational website offering articles and advice on the mortgage refinance process. You can learn more by visiting http://www.mortgage-refinance-advice.com
Article Source: http://EzineArticles.com/?expert=Brandon_Cornett
Most low-income home buying programs are sponsored or insured by the government in some way, such as the programs listed below.
Freddie Mac and Fannie Mae
Freddie Mac and Fannie Mae are private corporations sponsored by the U.S. government. Both organizations indirectly help low- to middle-income families purchase homes, and in similar ways.
Freddie Mac
Freddie Mac is the Federal Home Loan Mortgage Corporation. This organization was chartered by Congress in 1970. Freddie Mac supports the secondary mortgage market by purchasing residential mortgage loans and reselling them to investors on Wall Street. This increases the availability and affordability of home loans for low- and middle-income Americans.
Learn more at www.FreddieMac.com
Fannie Mae
Fannie Mae is short for Federal National Mortgage Association (FNMA). Congress chartered this organization in 1938. According to their website, Fannie Mae "provides financial products and services that make it possible for low-, moderate-, and middle-income families to buy homes of their own."
Learn more at www.FannieMae.com
Federal Housing Authority
The Federal Housing Authority (FHA) also supports low-income home buying in the U.S. The FHA was created as part of The National Housing Act of 1934. The FHA supports the home financing industry by insuring mortgages. This in turn helps low-income home buyers qualify for mortgage loans they might not otherwise qualify for.
Learn more at www.FHA.gov
Veteran's Administration Home Loans
The Veteran's Administration (VA) helps low-income home buyers (and all home buyers, for that matter) by guaranteeing loans made by mortgage lenders. The VA does not actually make direct loans. The VA home loan program is reserved for military veterans and their spouses. Applicants to the program must obtain a Certificate of Eligibility that they will in turn present to their mortgage lender.
Learn more at www.homeloans.va.gov
Rural Housing Authority
The Rural Housing Authority (RHA) is another government organization that can assist low-income home buyers in certain situations. The RHA is part of the United States Department of Agriculture (USDA). Unlike the organizations mentioned previously, the RHA actually makes direct loans to home buyers, among other things. They also guarantee regular commercial loans for home buyers in rural areas.
Learn more at www.rurdev.usda.gov/rhs
State-Sponsored Programs
In addition to federal programs, there are many low-income home buying programs offered by state governments. An example would be the Michigan State Housing Development Authority, which "makes low interest mortgage loans available through [their] network of experienced lenders." Many other states offer similar programs. There are far too many state programs to list in this article, but you can learn more about them by searching online for home buying programs in your state.
* Copyright 2007, Brandon Cornett. You may republish this article online if you keep the author's byline and active hyperlinks below.
Brandon Cornett is the publisher of Mortgage Refinance Advice, an educational website offering articles and advice on the mortgage refinance process. You can learn more by visiting http://www.mortgage-refinance-advice.com
Article Source: http://EzineArticles.com/?expert=Brandon_Cornett
Home Buying Process - 5 Most Common Questions Among Home Buyers
Since launching the Home Buying Institute website back in 2005, I've received quite a few home-buying questions by email. As you might imagine, many of these questions came from first-time home buyers who are new to the process of buying a home.
I thought it would be beneficial to home buyers everywhere if I selected five of the most common home-buying questions I receive, and explored them in an article such as this. I've also listed the corresponding areas of HomeBuyingInstitute.com that cover these topics in more detail.
So here we go with five common questions when buying a home:
1. How do I find out my price range?
Determining a price range should be one of your first steps when buying a home. When you know how much you can comfortably afford each month, you'll save time during the house hunting process by only visiting properties within your price range.
To determine your price range, sit down and compare your monthly income to your monthly expenses (savings, credit card payments, car payment, quality of life, etc.). How much is left? Your monthly mortgage should be less than this amount. Now you can use an online mortgage calculator to break each sale price down to a monthly amount, and determine if that amount is inside or outside your comfort zone.
Section of Home Buying Institute: "Self Assessment"
2. Do I need a real estate agent?
Here's the short answer ... yes! If you are buying a first home, you should have a real estate agent. Buying a home is one of the biggest financial transactions you will ever make, so it's always wise to have professional help.
Your agent will help you find homes that match your price range and desired features. He or she will also help you validate the asking process (next item), write up the purchase offer, help you negotiate with the seller, and guide you through the rest of the home buying process.
Section of Home Buying Institute: "Finding an Agent"
3. How do I research the asking price?
The first thing to realize here is that it's called an "asking price" for a reason. The price set by the seller is never set in stone. It's what they are asking for, and you are free to make a counter-offer is you see fit. Your real estate agent will help you validate the asking price by looking at comparable, recent sales in the area. This will tell you if the asking price is reasonable or over-priced, based on current marketing conditions.
Section of Home Buying Institute: "Process Overview" and "What to Avoid"
4. Which type of mortgage loan should I choose?
This question always presents a catch-22 for me. On one hand, I enjoy helping people by answering their home buying questions. On the other hand, I don't dare make a decision like this on behalf of a stranger. It's too important a decision for me to make for somebody else.
With that disclaimer out of the way, here's how you can choose the best type of mortgage loan for your situation. First, do some research on the basic types of home loans -- fixed rate, adjustable rate (ARM), balloon loan, etc. When researching the different mortgage types, pay attention to paragraphs that begin with: "This type of mortgage might be best for you if..." Generally, this type of statement is followed by a series of pros and cons that will explain the type of home buyer who might choose that option.
As a rule of thumb, if you're going to be in the home for quite a while (five years or more), it's probably a good idea to choose a fixed-rate mortgage. On the other hand, if you think you'll only be in the home for two or three years, you might want to choose an adjustable-rate mortgage to save money during your short time of ownership.
Section of Home Buying Institute: "Types of Mortgages"
5. What happens at the real estate closing?
Basically, the real estate closing (also known as a "settlement") is when property ownership transfers from seller to buyer. All remaining fees will be paid as well, and these are known as closing costs. The seller gets their portion of the payment (minus what they still owe on the mortgage), and the deed is transferred to reflect the new owner.
As a home buyer, the best you can do is save more money than you think you'll need at closing, just to be safe. You should also make sure you receive a HUD-1 statement (or "settlement statement") at least one day prior to the closing date. This document gives you an itemized list of the costs you'll be expected to pay at closing. The Real Estate Settlement Procedures Act (RESPA) requires that the closing / escrow agent provide this document at least one day before the real estate closing.
Section of Home Buying Institute: "Closing / Settlement"
* You may republish this article online if you retain the author's byline and the active hyperlinks below. Copyright 2007, Brandon Cornett.
Get More Answers
Brandon Cornett is the publisher of Home Buying Institute, a library of home buying advice and articles. If you have additional questions about buying a home, be sure to visit http://www.homebuyinginstitute.com
Article Source: http://EzineArticles.com/?expert=Brandon_Cornett
I thought it would be beneficial to home buyers everywhere if I selected five of the most common home-buying questions I receive, and explored them in an article such as this. I've also listed the corresponding areas of HomeBuyingInstitute.com that cover these topics in more detail.
So here we go with five common questions when buying a home:
1. How do I find out my price range?
Determining a price range should be one of your first steps when buying a home. When you know how much you can comfortably afford each month, you'll save time during the house hunting process by only visiting properties within your price range.
To determine your price range, sit down and compare your monthly income to your monthly expenses (savings, credit card payments, car payment, quality of life, etc.). How much is left? Your monthly mortgage should be less than this amount. Now you can use an online mortgage calculator to break each sale price down to a monthly amount, and determine if that amount is inside or outside your comfort zone.
Section of Home Buying Institute: "Self Assessment"
2. Do I need a real estate agent?
Here's the short answer ... yes! If you are buying a first home, you should have a real estate agent. Buying a home is one of the biggest financial transactions you will ever make, so it's always wise to have professional help.
Your agent will help you find homes that match your price range and desired features. He or she will also help you validate the asking process (next item), write up the purchase offer, help you negotiate with the seller, and guide you through the rest of the home buying process.
Section of Home Buying Institute: "Finding an Agent"
3. How do I research the asking price?
The first thing to realize here is that it's called an "asking price" for a reason. The price set by the seller is never set in stone. It's what they are asking for, and you are free to make a counter-offer is you see fit. Your real estate agent will help you validate the asking price by looking at comparable, recent sales in the area. This will tell you if the asking price is reasonable or over-priced, based on current marketing conditions.
Section of Home Buying Institute: "Process Overview" and "What to Avoid"
4. Which type of mortgage loan should I choose?
This question always presents a catch-22 for me. On one hand, I enjoy helping people by answering their home buying questions. On the other hand, I don't dare make a decision like this on behalf of a stranger. It's too important a decision for me to make for somebody else.
With that disclaimer out of the way, here's how you can choose the best type of mortgage loan for your situation. First, do some research on the basic types of home loans -- fixed rate, adjustable rate (ARM), balloon loan, etc. When researching the different mortgage types, pay attention to paragraphs that begin with: "This type of mortgage might be best for you if..." Generally, this type of statement is followed by a series of pros and cons that will explain the type of home buyer who might choose that option.
As a rule of thumb, if you're going to be in the home for quite a while (five years or more), it's probably a good idea to choose a fixed-rate mortgage. On the other hand, if you think you'll only be in the home for two or three years, you might want to choose an adjustable-rate mortgage to save money during your short time of ownership.
Section of Home Buying Institute: "Types of Mortgages"
5. What happens at the real estate closing?
Basically, the real estate closing (also known as a "settlement") is when property ownership transfers from seller to buyer. All remaining fees will be paid as well, and these are known as closing costs. The seller gets their portion of the payment (minus what they still owe on the mortgage), and the deed is transferred to reflect the new owner.
As a home buyer, the best you can do is save more money than you think you'll need at closing, just to be safe. You should also make sure you receive a HUD-1 statement (or "settlement statement") at least one day prior to the closing date. This document gives you an itemized list of the costs you'll be expected to pay at closing. The Real Estate Settlement Procedures Act (RESPA) requires that the closing / escrow agent provide this document at least one day before the real estate closing.
Section of Home Buying Institute: "Closing / Settlement"
* You may republish this article online if you retain the author's byline and the active hyperlinks below. Copyright 2007, Brandon Cornett.
Get More Answers
Brandon Cornett is the publisher of Home Buying Institute, a library of home buying advice and articles. If you have additional questions about buying a home, be sure to visit http://www.homebuyinginstitute.com
Article Source: http://EzineArticles.com/?expert=Brandon_Cornett
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