In most purchase transactions there may be a slight challenge or two, but most things will go quite smoothly. However, you want to anticipate potential problems so that if something does go wrong, you can cancel the contract without penalty. These are called "contingencies" and you must be sure to include them when you offer to buy a home.
For example, some "move-up" buyers often agree to purchase a home before selling their previous home. Even if the home is already sold, it is probably a "pending sale" and has not closed. Therefore, you should make closing your own sale a condition of your offer. If you do not include this as a contingency, you may find yourself making two mortgage payments instead of one.
There are other common contingencies you should include in your offer. Since you probably need a mortgage to buy the home, a condition of your offer should be that you successfully obtain suitable financing. Another condition should be that the property appraises for at least what you agreed to pay for it. During the escrow period you are likely to require certain inspections, and another contingency should be that it pass those inspections.
Basically, contingencies protect you in case you cannot perform or choose not to perform on a promise to buy a home. If you cancel a contract without having built-in conditions and contingencies, you could find yourself forfeiting your earnest money deposit.
http://www.realestateabc.com/homebuying/contingencies.htm
Wednesday, October 31, 2007
Writing an Offer to Purchase Real Estate
Once you find the home you want to buy, the next step is to write an offer – which is not as easy as it sounds. Your offer is the first step toward negotiating a sales contract with the seller. Since this is just the beginning of negotiations, you should put yourself in the seller’s shoes and imagine his or her reaction to everything you include. Your goal is to get what you want, and imagining the seller’s reactions will help you attain that goal.
The offer is much more complicated than simply coming up with a price and saying, "This is what I’ll pay." Because of the huge dollar amounts involved, especially in today’s litigious society, both you and the seller want to build in protections and contingencies to protect your investment and limit your risk.
In an offer to purchase real estate, you include not only the price you are willing to pay, but other details of the purchase as well. This includes how you intend to finance the home, your down payment, who pays what closing costs, what inspections are performed, timetables, whether personal property is included in the purchase, terms of cancellation, any repairs you want performed, which professional services will be used, when you get physical possession of the property, and how to settle disputes should they occur.
It is certainly more involved than buying a car. And more important.
Buying a home is a major event for both the buyer and seller. It will affect your finances more than any other previous purchase or investment. The seller makes plans based on your offer that affect his finances, too. However, it is more important than just money. In the half-hour it takes to write an offer you are making decisions that affect how you live for the next several years, if not the rest of your life. The seller is going to review your offer carefully, because it also affects how he or she lives the rest of their life.
http://www.realestateabc.com/homebuying/offer.htm
The offer is much more complicated than simply coming up with a price and saying, "This is what I’ll pay." Because of the huge dollar amounts involved, especially in today’s litigious society, both you and the seller want to build in protections and contingencies to protect your investment and limit your risk.
In an offer to purchase real estate, you include not only the price you are willing to pay, but other details of the purchase as well. This includes how you intend to finance the home, your down payment, who pays what closing costs, what inspections are performed, timetables, whether personal property is included in the purchase, terms of cancellation, any repairs you want performed, which professional services will be used, when you get physical possession of the property, and how to settle disputes should they occur.
It is certainly more involved than buying a car. And more important.
Buying a home is a major event for both the buyer and seller. It will affect your finances more than any other previous purchase or investment. The seller makes plans based on your offer that affect his finances, too. However, it is more important than just money. In the half-hour it takes to write an offer you are making decisions that affect how you live for the next several years, if not the rest of your life. The seller is going to review your offer carefully, because it also affects how he or she lives the rest of their life.
http://www.realestateabc.com/homebuying/offer.htm
Writing an Offer - Concerns About the Property
Disclosures
Although you have toured the property, looked at the walls and ceiling, turned on the faucets and played with the light switches, you have not lived in it. The seller has years of knowledge about his or her home and there may be some things you want to find out about as quickly as possible. For this reason, you will require certain disclosures as part of your offer.
Basically, you want the seller to disclose any adverse conditions that may have a substantial impact on your decision to purchase the home. This would include any problems with the house, whether the property is in a flood zone, a noise zone, or any other kind of hazardous area.
If you have an agent representing you, this is almost automatic, but many states do not require individuals selling their own home to provide you with this information. Often they do not require banks selling foreclosed property to provide these disclosures, either. Obtaining these types of disclosures should always be a part of your offer, and time is of the essence.
Condition of the Property
The last thing you want when you assume possession of your new home is to find it in a total mess. Therefore, you should make it clear in your offer that certain minimum standards are required. If you do not, you might find out the seller or neighbors have begun using the back yard as a trash dump, or something worse – and you would not be able to do anything about it.
Some of the requirements you might want to include in your offer are that the roof does not leak, the appliances work, the plumbing does not leak, that there are no broken or cracked windows, the yard has been kept up, and any debris has been cleared away.
Home Inspections
Besides appraisal and the termite inspection, you should also have a professional go through the house and seek out potential problems. Of course, you will have inspected the home, but you are not used to looking at some things that a professional will find. Even if they are not things the seller is expected to repair, at least you will have foreknowledge of any potential problems.
The seller will want this inspection performed quickly, so that you can approve the results and move forward with the purchase. Once you receive the inspection, you will want to allow yourself sufficient time to review and approve the report. If you do not approve the report, you may negotiate with the sellers on which repairs should be performed and who should pay for those repairs. Otherwise, you can cancel the purchase without penalty, provided you have included timetables in your offer.
Allow a maximum of ten to fifteen days to receive the report and five days to review it.
Final Walk-Through Inspection
Before closing, you will want to revisit the property to ensure it is in the condition you have required in your offer, and to inspect that any required repairs have been performed. You should do this no sooner than five days before you intend to close. Make sure this right to do a final inspection is included in your offer to purchase the home.
http://www.realestateabc.com/homebuying/property.htm#Final%20Walk-Through%20Inspection
Although you have toured the property, looked at the walls and ceiling, turned on the faucets and played with the light switches, you have not lived in it. The seller has years of knowledge about his or her home and there may be some things you want to find out about as quickly as possible. For this reason, you will require certain disclosures as part of your offer.
Basically, you want the seller to disclose any adverse conditions that may have a substantial impact on your decision to purchase the home. This would include any problems with the house, whether the property is in a flood zone, a noise zone, or any other kind of hazardous area.
If you have an agent representing you, this is almost automatic, but many states do not require individuals selling their own home to provide you with this information. Often they do not require banks selling foreclosed property to provide these disclosures, either. Obtaining these types of disclosures should always be a part of your offer, and time is of the essence.
Condition of the Property
The last thing you want when you assume possession of your new home is to find it in a total mess. Therefore, you should make it clear in your offer that certain minimum standards are required. If you do not, you might find out the seller or neighbors have begun using the back yard as a trash dump, or something worse – and you would not be able to do anything about it.
Some of the requirements you might want to include in your offer are that the roof does not leak, the appliances work, the plumbing does not leak, that there are no broken or cracked windows, the yard has been kept up, and any debris has been cleared away.
Home Inspections
Besides appraisal and the termite inspection, you should also have a professional go through the house and seek out potential problems. Of course, you will have inspected the home, but you are not used to looking at some things that a professional will find. Even if they are not things the seller is expected to repair, at least you will have foreknowledge of any potential problems.
The seller will want this inspection performed quickly, so that you can approve the results and move forward with the purchase. Once you receive the inspection, you will want to allow yourself sufficient time to review and approve the report. If you do not approve the report, you may negotiate with the sellers on which repairs should be performed and who should pay for those repairs. Otherwise, you can cancel the purchase without penalty, provided you have included timetables in your offer.
Allow a maximum of ten to fifteen days to receive the report and five days to review it.
Final Walk-Through Inspection
Before closing, you will want to revisit the property to ensure it is in the condition you have required in your offer, and to inspect that any required repairs have been performed. You should do this no sooner than five days before you intend to close. Make sure this right to do a final inspection is included in your offer to purchase the home.
http://www.realestateabc.com/homebuying/property.htm#Final%20Walk-Through%20Inspection
Tuesday, October 30, 2007
Understanding Home Equity Credit Lines
Using a credit line to borrow against the equity in your home has become a popular source of consumer credit. And lenders are offering these home equity credit lines in a variety of ways.
You will find most loans come with variable interest rates, some come with attractive low introductory rates, and a few come with fixed rates. You also may find most loans have large one-time upfront fees, others have closing costs, and some have continuing costs, such as annual fees. You can find loans with large balloon payments at the end of the loan, and others with no balloons but with higher monthly payments.
No one loan is right for every homeowner. The challenge, then, is to contact different lenders, compare options, and select the home equity credit line best tailored to your needs.
Be sure to review the home equity contract carefully before you sign it. Do not hesitate to ask questions about the terms and conditions of your financing. To help you do this, you may want to consider the following questions.
Is a home equity credit line for you?
If you need to borrow money, home equity lines may be one useful source of credit. Initially at least, they may provide you with large amounts of cash at relatively low interest rates. And they may provide you with certain tax advantages unavailable with other kinds of loans. (Check with your tax adviser for details.)
At the same time, home equity lines of credit require you to use your home as collateral for the loan. This may put your home at risk if you are late or cannot make your monthly payments. Those loans with a large final (balloon) payment may lead you to borrow more money to pay off this debt, or they may put your home in jeopardy if you cannot qualify for refinancing. And, if you sell your home, most plans require you to pay off your credit line at that time. In addition, because home equity loans give you relatively easy access to cash, you might find you borrow money more freely.
Remember too, there are other ways to borrow money from a lending institution. For example, you may want to explore second mortgage installment loans. Although these plans also place an additional mortgage on your home, second mortgage money usually is loaned in a lump sum, rather than in a series of advances made available by writing checks on an account. Also, second mortgages usually have fixed interest rates and fixed payment amounts.
You also may want to explore borrowing from credit lines that do not use your home as collateral. These are available with your credit cards or with unsecured credit lines that let you write checks as you need the money. In addition, you may want to ask about loans for specific items, such as cars or tuition.
How much money can you borrow on a home equity credit line?
Depending on your creditworthiness (your income, credit rating, etc.) and the amount of your outstanding debt, home equity lenders may let you borrow up to 85% of the appraised value of your home minus the amount you still owe on your first mortgage. Ask the lender about the length of the home equity loan, whether there is a minimum withdrawal requirement when you open your account, and whether there are minimum or maximum withdrawal requirements after your account is opened. Inquire how you gain access to your credit line -- with checks, credit cards, or both.
Also, find out if your home equity plan sets a fixed time -- a draw period -- when you can make withdrawals from your account. Once the draw period expires, you may be able to renew your credit line. If you cannot, you will not be permitted to borrow additional funds. Also, in some plans, you may have to pay your full outstanding balance. In others, you may be able to repay the balance over a fixed time.
What is the interest rate on the home equity loan?
Interest rates for loans differ, so it pays to check with several lenders for the lowest rate. Compare the annual percentage rate (APR), which indicates the cost of credit on a yearly basis. Be aware that the advertised APR for home equity credit lines is based on interest alone. For a true comparison of credit costs, compare other charges, such as points and closing costs, which will add to the cost of your home equity loan. This is especially important if you are comparing a home equity credit line with a traditional installment (or second) mortgage, where the APR includes the total credit costs for the loan.
In addition, ask about the type of interest rates available for the home equity plan. Most home equity credit lines have variable interest rates. These variable rates may offer lower monthly payments at first, but during the rest of the repayment period the payments may change and may be higher. Fixed interest rates, if available, may be slightly higher initially than variable rates, but fixed rates offer stable monthly payments over the life of the credit line.
If you are considering a variable rate, check and compare the terms. Check the periodic cap, which is the limit on interest rate changes at one time. Also, check the lifetime cap, which is the limit on interest rate changes throughout the loan term. Ask the lender which index is used and how much and how often it can change. An index (such as the prime rate) is used by lenders to determine how much to raise or lower interest rates. Also, check the margin, which is an amount added to the index that determines the interest you are charged. In addition, inquire whether you can convert your variable rate loan to a fixed rate at some future time.
Sometimes, lenders offer a temporarily discounted interest rate -- a rate that is unusually low and lasts only for an introductory period, such as six months. During this time, your monthly payments are lower too. After the introductory period ends, however, your rate (and payments) increase to the true market level (the index plus the margin). So, ask if the rate you are offered is "discounted," and if so, find out how the rate will be determined at the end of the discount period and how much larger your payments could be at that time.
What are the upfront closing costs?
When you take out a home equity line of credit, you pay for many of the same expenses as when you financed your original mortgage. These include items such as an application fee, title search, appraisal, attorneys' fees, and points (a percentage of the amount you borrow). These expenses can add substantially to the cost of your loan, especially if you ultimately borrow little from your credit line. You may want to negotiate with lenders to see if they will pay for some of these expenses.
What are the continuing costs?
In addition to upfront closing costs, some lenders require you to pay continuing fees throughout the life of the loan. These may include an annual membership or participation fee, which is due whether or not you use the account, and/or a transaction fee, which is charged each time you borrow money. These fees add to the overall cost of the loan.
What are the repayment terms during the loan?
As you pay back the loan, your payments may change if your credit line has a variable interest rate, even if you do not borrow more money from your account. Find out how often and how much your payments can change. You also will want to know whether you are paying back both principal and interest, or interest only. Even if you are paying back some principal, ask whether your monthly payments will cover the full amount borrowed or whether you will owe an additional payment of principal at the end of the loan. In addition, you may want to ask about penalties for late payments and under what conditions the lender can consider you in default and demand immediate full payment.
What are the repayment terms at the end of the loan?
Ask whether you might owe a large payment at the end of your loan term. If so, and you are not sure you will be able to afford the balloon payment, you may want to renegotiate your repayment terms. When you take out the loan, ask about the conditions for renewal of the plan or for refinancing the unpaid balance. Consider asking the lender to agree ahead of time and in writing to refinance any end-of-loan balance or extend your repayment time, if necessary.
What safeguards are built into the loan?
One of the best protections you have is the Federal Truth in Lending Act, which requires lenders to inform you about the terms and costs of the plan at the time you are given an application. Lenders must disclose the APR and payment terms and must inform you of charges to open or use the account, such as an appraisal, a credit report, or attorneys' fees. Lenders also must tell you about any variable-rate feature and give you a brochure describing the general features of home equity plans.
The Truth in Lending Act also protects you from changes in the terms of the account (other than a variable-rate feature) before the plan is opened. If you decide not to enter into the plan because of a change in terms, all fees you paid earlier must be returned to you.
Because your home is at risk when you open a home equity credit account, you have three days to cancel the transaction, for any reason. To cancel, you must inform the lender in writing. Following that, your credit line must be cancelled and all fees you have paid must be returned.
Once your home equity plan is opened, if you pay as agreed, the lender, in most cases, may not terminate your plan, accelerate payment of your outstanding balance, or change the terms of your account. The lender may halt credit advances on your account during any period in which interest rates exceed the maximum rate cap in your agreement, if your contract permits this practice.
http://www.online-home-mortgage-loans.com/home-equity-credit-lines.htm
You will find most loans come with variable interest rates, some come with attractive low introductory rates, and a few come with fixed rates. You also may find most loans have large one-time upfront fees, others have closing costs, and some have continuing costs, such as annual fees. You can find loans with large balloon payments at the end of the loan, and others with no balloons but with higher monthly payments.
No one loan is right for every homeowner. The challenge, then, is to contact different lenders, compare options, and select the home equity credit line best tailored to your needs.
Be sure to review the home equity contract carefully before you sign it. Do not hesitate to ask questions about the terms and conditions of your financing. To help you do this, you may want to consider the following questions.
Is a home equity credit line for you?
If you need to borrow money, home equity lines may be one useful source of credit. Initially at least, they may provide you with large amounts of cash at relatively low interest rates. And they may provide you with certain tax advantages unavailable with other kinds of loans. (Check with your tax adviser for details.)
At the same time, home equity lines of credit require you to use your home as collateral for the loan. This may put your home at risk if you are late or cannot make your monthly payments. Those loans with a large final (balloon) payment may lead you to borrow more money to pay off this debt, or they may put your home in jeopardy if you cannot qualify for refinancing. And, if you sell your home, most plans require you to pay off your credit line at that time. In addition, because home equity loans give you relatively easy access to cash, you might find you borrow money more freely.
Remember too, there are other ways to borrow money from a lending institution. For example, you may want to explore second mortgage installment loans. Although these plans also place an additional mortgage on your home, second mortgage money usually is loaned in a lump sum, rather than in a series of advances made available by writing checks on an account. Also, second mortgages usually have fixed interest rates and fixed payment amounts.
You also may want to explore borrowing from credit lines that do not use your home as collateral. These are available with your credit cards or with unsecured credit lines that let you write checks as you need the money. In addition, you may want to ask about loans for specific items, such as cars or tuition.
How much money can you borrow on a home equity credit line?
Depending on your creditworthiness (your income, credit rating, etc.) and the amount of your outstanding debt, home equity lenders may let you borrow up to 85% of the appraised value of your home minus the amount you still owe on your first mortgage. Ask the lender about the length of the home equity loan, whether there is a minimum withdrawal requirement when you open your account, and whether there are minimum or maximum withdrawal requirements after your account is opened. Inquire how you gain access to your credit line -- with checks, credit cards, or both.
Also, find out if your home equity plan sets a fixed time -- a draw period -- when you can make withdrawals from your account. Once the draw period expires, you may be able to renew your credit line. If you cannot, you will not be permitted to borrow additional funds. Also, in some plans, you may have to pay your full outstanding balance. In others, you may be able to repay the balance over a fixed time.
What is the interest rate on the home equity loan?
Interest rates for loans differ, so it pays to check with several lenders for the lowest rate. Compare the annual percentage rate (APR), which indicates the cost of credit on a yearly basis. Be aware that the advertised APR for home equity credit lines is based on interest alone. For a true comparison of credit costs, compare other charges, such as points and closing costs, which will add to the cost of your home equity loan. This is especially important if you are comparing a home equity credit line with a traditional installment (or second) mortgage, where the APR includes the total credit costs for the loan.
In addition, ask about the type of interest rates available for the home equity plan. Most home equity credit lines have variable interest rates. These variable rates may offer lower monthly payments at first, but during the rest of the repayment period the payments may change and may be higher. Fixed interest rates, if available, may be slightly higher initially than variable rates, but fixed rates offer stable monthly payments over the life of the credit line.
If you are considering a variable rate, check and compare the terms. Check the periodic cap, which is the limit on interest rate changes at one time. Also, check the lifetime cap, which is the limit on interest rate changes throughout the loan term. Ask the lender which index is used and how much and how often it can change. An index (such as the prime rate) is used by lenders to determine how much to raise or lower interest rates. Also, check the margin, which is an amount added to the index that determines the interest you are charged. In addition, inquire whether you can convert your variable rate loan to a fixed rate at some future time.
Sometimes, lenders offer a temporarily discounted interest rate -- a rate that is unusually low and lasts only for an introductory period, such as six months. During this time, your monthly payments are lower too. After the introductory period ends, however, your rate (and payments) increase to the true market level (the index plus the margin). So, ask if the rate you are offered is "discounted," and if so, find out how the rate will be determined at the end of the discount period and how much larger your payments could be at that time.
What are the upfront closing costs?
When you take out a home equity line of credit, you pay for many of the same expenses as when you financed your original mortgage. These include items such as an application fee, title search, appraisal, attorneys' fees, and points (a percentage of the amount you borrow). These expenses can add substantially to the cost of your loan, especially if you ultimately borrow little from your credit line. You may want to negotiate with lenders to see if they will pay for some of these expenses.
What are the continuing costs?
In addition to upfront closing costs, some lenders require you to pay continuing fees throughout the life of the loan. These may include an annual membership or participation fee, which is due whether or not you use the account, and/or a transaction fee, which is charged each time you borrow money. These fees add to the overall cost of the loan.
What are the repayment terms during the loan?
As you pay back the loan, your payments may change if your credit line has a variable interest rate, even if you do not borrow more money from your account. Find out how often and how much your payments can change. You also will want to know whether you are paying back both principal and interest, or interest only. Even if you are paying back some principal, ask whether your monthly payments will cover the full amount borrowed or whether you will owe an additional payment of principal at the end of the loan. In addition, you may want to ask about penalties for late payments and under what conditions the lender can consider you in default and demand immediate full payment.
What are the repayment terms at the end of the loan?
Ask whether you might owe a large payment at the end of your loan term. If so, and you are not sure you will be able to afford the balloon payment, you may want to renegotiate your repayment terms. When you take out the loan, ask about the conditions for renewal of the plan or for refinancing the unpaid balance. Consider asking the lender to agree ahead of time and in writing to refinance any end-of-loan balance or extend your repayment time, if necessary.
What safeguards are built into the loan?
One of the best protections you have is the Federal Truth in Lending Act, which requires lenders to inform you about the terms and costs of the plan at the time you are given an application. Lenders must disclose the APR and payment terms and must inform you of charges to open or use the account, such as an appraisal, a credit report, or attorneys' fees. Lenders also must tell you about any variable-rate feature and give you a brochure describing the general features of home equity plans.
The Truth in Lending Act also protects you from changes in the terms of the account (other than a variable-rate feature) before the plan is opened. If you decide not to enter into the plan because of a change in terms, all fees you paid earlier must be returned to you.
Because your home is at risk when you open a home equity credit account, you have three days to cancel the transaction, for any reason. To cancel, you must inform the lender in writing. Following that, your credit line must be cancelled and all fees you have paid must be returned.
Once your home equity plan is opened, if you pay as agreed, the lender, in most cases, may not terminate your plan, accelerate payment of your outstanding balance, or change the terms of your account. The lender may halt credit advances on your account during any period in which interest rates exceed the maximum rate cap in your agreement, if your contract permits this practice.
http://www.online-home-mortgage-loans.com/home-equity-credit-lines.htm
Understanding Mortgage Financing
If you are thinking about buying a house, especially your first one, you may have some basic questions about the home-financing process. The following answers may help. You also may want to obtain some of the free or low-cost information listed at the end of this brochure.
How large a mortgage will you be able to get?
A general rule is that you usually can qualify for a mortgage loan of two to two and one-half times your household's income. For example, if your family has an income of $30,000 a year, you can usually qualify for a mortgage of $60,000 to $75,000.
Lenders use many other factors to determine how large a mortgage they will give you. For example, lenders generally prefer that your housing expenses (including mortgage payments, insurance, taxes, and special assessments) not exceed 25 to 28 percent of your gross monthly income. Other long-term debt (monthly payments extending more than 10 months) added to your housing expenses should not exceed 33 to 36 percent of your gross monthly income. Federal Housing Administration (FHA) and Department of Veteran Affairs (VA) mortgage loan percentages may vary.
In addition, lenders want to know about your employment and credit history. This includes finding out about your job and income and how well you handled and repaid loans in the past.
Legal safeguards exist to ensure this information is used fairly. For example, the Fair Credit Reporting Act states that lenders must certify to the credit bureau the purpose for which this information is sought and that it will be used for no other purpose. The Equal Credit Opportunity Act prohibits discrimination in lending based on sex, marital status, race, national origin, religion, age, or because someone receives public assistance.
How much money will you need for a down payment and closing costs?
Lenders usually expect you to be able to make a down payment of between 10 and 20 percent of the house's price and to pay closing costs, often three to six percent of the loan amount. If you make a down payment of as little as five percent but less than 20 percent, the lender will require you to pay for private mortgage insurance. (Requirements for VA or FHA loans may differ.) Under the federal Real Estate Settlement Procedures Act, the lender must provide you with information on known and estimated closing costs.
How do you shop for mortgage loans?
Mortgage packages vary widely, and it is important to investigate several options to find the one best for you. If, for example, you are using a real estate agent or broker to shop for a home, you may want to consider their suggestions about lenders and mortgage packages. Check real estate or business newspaper sections, which may include brief tables on mortgage availability. Look in the Yellow Pages under "Mortgages" for a list of mortgage lenders in your area. Call several lenders for rates and terms on the type of mortgage you want. In addition, consider trying a commercial "computerized mortgage shopping service," although such a list may reflect only a selection of lenders and you may be charged a fee.
Compare the mortgages offered by several lenders before you apply for a loan. Most lenders require you to pay a fee when you file your loan application. The amount of this fee varies, but it can be $100 to $300. Some lenders do not refund this fee if you are not approved for the loan, or if you decide not to accept the loan terms offered. Before you apply, ask the lender whether they charge an application fee, how much it is, and under what circumstances and to what extent it is refundable.
What kind of mortgage should you select?
There are two major types of mortgage loans -- those with fixed interest rates and monthly payments and those with changing rates and payments. However, there are many variations of these plans on the market, and you should shop carefully for the mortgage that best suits your needs.
Common fixed-rate mortgages include 30-year, 15-year, and bi-weekly mortgages. The 30-year mortgage usually offers the lowest monthly payments of fixed-rate loans, with a fixed monthly payment schedule.
The 15-year fixed-rate mortgage enables you to own your home in half the time and for less than half the total interest costs of a 30-year loan. These loans, however, often require higher monthly payments.
The bi-weekly mortgage shortens the loan term from 30 years to 18 to 19 years by requiring a payment for half the monthly amount every two weeks. While you pay about 8 percent more a year towards the loan's principal than you would with the 30-year, one-payment-per-month loan, you pay substantially less interest over the life of the loan. Keep in mind, however, that with shorter-term loans, you trade lower total costs for smaller mortgage interest deductions on your income tax.
Mortgages with changing interest rates and/or monthly payments exist in many forms. The adjustable rate mortgage (ARM) is probably the most common, and there are many types of ARM loans available. The ARM usually offers interest rates and monthly payments that are initially lower than fixed-rate mortgages. But these rates and payments can fluctuate, often annually, according to changes in a pre-determined "index" -- commonly the rate of return on U.S. Government Treasury bills.
Some adjustable loans, for a fee, contain a provision permitting you to convert later to a fixed-rate loan. Another type of mortgage loan carries a fixed-interest rate for a number of years, often seven, before adjusting to a new interest rate for the remainder of the loan. A "buydown" or "discounted mortgage" is another type of loan with an initially reduced interest rate which increases to a higher fixed rate or to an adjustable rate usually within one to three years. For example, in a "lender buydown," the lender offers lower monthly payments during the first few years of the loan.
What features should you compare with different mortgage loan packages?
Probably the single most important factor to look for when shopping for a home mortgage is the annual percentage rate, or the "APR." The APR includes all the costs of credit, including such items as interest, "points" (fees often charged when a mortgage is closed), and mortgage insurance (when included in the loan). Lenders must disclose the APR under the Truth in Lending Act. The lower the APR, generally the lower the cost of your loan. Advertisements that state other rates such as "simple" interest rates, do not include all the costs of the loan.
If you shop for a mortgage loan with interest rates or payments that change, be sure to compare:
* initial interest rates;
* the "cap" -- or how much the interest rate can increase/decrease over the life of the loan, and how much the rate can change at each adjustment;
* how often the interest rate can change;
* how much and how often the monthly payments and term of the loan can change;
* what index is used to determine the rate changes;
* what "margin" is used -- or how much additional a lender can add to the adjusted interest rate;
* the limits, if any, on "negative amortization" -- the loss of equity in your home when low monthly payments do not cover fully the interest rate charges agreed upon in the mortgage contract; and
* any "balloon" payments -- a large payment at the end of your loan term, often after a series of low monthly payments.
http://www.online-home-mortgage-loans.com/mortgage-financing.htm
How large a mortgage will you be able to get?
A general rule is that you usually can qualify for a mortgage loan of two to two and one-half times your household's income. For example, if your family has an income of $30,000 a year, you can usually qualify for a mortgage of $60,000 to $75,000.
Lenders use many other factors to determine how large a mortgage they will give you. For example, lenders generally prefer that your housing expenses (including mortgage payments, insurance, taxes, and special assessments) not exceed 25 to 28 percent of your gross monthly income. Other long-term debt (monthly payments extending more than 10 months) added to your housing expenses should not exceed 33 to 36 percent of your gross monthly income. Federal Housing Administration (FHA) and Department of Veteran Affairs (VA) mortgage loan percentages may vary.
In addition, lenders want to know about your employment and credit history. This includes finding out about your job and income and how well you handled and repaid loans in the past.
Legal safeguards exist to ensure this information is used fairly. For example, the Fair Credit Reporting Act states that lenders must certify to the credit bureau the purpose for which this information is sought and that it will be used for no other purpose. The Equal Credit Opportunity Act prohibits discrimination in lending based on sex, marital status, race, national origin, religion, age, or because someone receives public assistance.
How much money will you need for a down payment and closing costs?
Lenders usually expect you to be able to make a down payment of between 10 and 20 percent of the house's price and to pay closing costs, often three to six percent of the loan amount. If you make a down payment of as little as five percent but less than 20 percent, the lender will require you to pay for private mortgage insurance. (Requirements for VA or FHA loans may differ.) Under the federal Real Estate Settlement Procedures Act, the lender must provide you with information on known and estimated closing costs.
How do you shop for mortgage loans?
Mortgage packages vary widely, and it is important to investigate several options to find the one best for you. If, for example, you are using a real estate agent or broker to shop for a home, you may want to consider their suggestions about lenders and mortgage packages. Check real estate or business newspaper sections, which may include brief tables on mortgage availability. Look in the Yellow Pages under "Mortgages" for a list of mortgage lenders in your area. Call several lenders for rates and terms on the type of mortgage you want. In addition, consider trying a commercial "computerized mortgage shopping service," although such a list may reflect only a selection of lenders and you may be charged a fee.
Compare the mortgages offered by several lenders before you apply for a loan. Most lenders require you to pay a fee when you file your loan application. The amount of this fee varies, but it can be $100 to $300. Some lenders do not refund this fee if you are not approved for the loan, or if you decide not to accept the loan terms offered. Before you apply, ask the lender whether they charge an application fee, how much it is, and under what circumstances and to what extent it is refundable.
What kind of mortgage should you select?
There are two major types of mortgage loans -- those with fixed interest rates and monthly payments and those with changing rates and payments. However, there are many variations of these plans on the market, and you should shop carefully for the mortgage that best suits your needs.
Common fixed-rate mortgages include 30-year, 15-year, and bi-weekly mortgages. The 30-year mortgage usually offers the lowest monthly payments of fixed-rate loans, with a fixed monthly payment schedule.
The 15-year fixed-rate mortgage enables you to own your home in half the time and for less than half the total interest costs of a 30-year loan. These loans, however, often require higher monthly payments.
The bi-weekly mortgage shortens the loan term from 30 years to 18 to 19 years by requiring a payment for half the monthly amount every two weeks. While you pay about 8 percent more a year towards the loan's principal than you would with the 30-year, one-payment-per-month loan, you pay substantially less interest over the life of the loan. Keep in mind, however, that with shorter-term loans, you trade lower total costs for smaller mortgage interest deductions on your income tax.
Mortgages with changing interest rates and/or monthly payments exist in many forms. The adjustable rate mortgage (ARM) is probably the most common, and there are many types of ARM loans available. The ARM usually offers interest rates and monthly payments that are initially lower than fixed-rate mortgages. But these rates and payments can fluctuate, often annually, according to changes in a pre-determined "index" -- commonly the rate of return on U.S. Government Treasury bills.
Some adjustable loans, for a fee, contain a provision permitting you to convert later to a fixed-rate loan. Another type of mortgage loan carries a fixed-interest rate for a number of years, often seven, before adjusting to a new interest rate for the remainder of the loan. A "buydown" or "discounted mortgage" is another type of loan with an initially reduced interest rate which increases to a higher fixed rate or to an adjustable rate usually within one to three years. For example, in a "lender buydown," the lender offers lower monthly payments during the first few years of the loan.
What features should you compare with different mortgage loan packages?
Probably the single most important factor to look for when shopping for a home mortgage is the annual percentage rate, or the "APR." The APR includes all the costs of credit, including such items as interest, "points" (fees often charged when a mortgage is closed), and mortgage insurance (when included in the loan). Lenders must disclose the APR under the Truth in Lending Act. The lower the APR, generally the lower the cost of your loan. Advertisements that state other rates such as "simple" interest rates, do not include all the costs of the loan.
If you shop for a mortgage loan with interest rates or payments that change, be sure to compare:
* initial interest rates;
* the "cap" -- or how much the interest rate can increase/decrease over the life of the loan, and how much the rate can change at each adjustment;
* how often the interest rate can change;
* how much and how often the monthly payments and term of the loan can change;
* what index is used to determine the rate changes;
* what "margin" is used -- or how much additional a lender can add to the adjusted interest rate;
* the limits, if any, on "negative amortization" -- the loss of equity in your home when low monthly payments do not cover fully the interest rate charges agreed upon in the mortgage contract; and
* any "balloon" payments -- a large payment at the end of your loan term, often after a series of low monthly payments.
http://www.online-home-mortgage-loans.com/mortgage-financing.htm
Tips for Buying a Home
Buying a home can be a rewarding life experience, as well as a great investment. But having a successful purchase requires some education and research. For first time homebuyers especially, you'll save yourself a lot of frustration--and maybe even money--if you start with a few simple steps.
Know What You Need
The first step is being honest about your needs versus your wants. For example, you may dream of having a big backyard for gardening. But if you have a busy schedule, a low-maintenance townhouse probably makes more sense. You also have to think about the long term. Will the house still meet your needs--or your family's needs--5 years from now?
Find a Real Estate Agent
A real estate agent can pre-qualify you for a loan, answer questions about neighborhoods, recommend lenders and even coordinate the closing--all while saving you time and money. To find the right agent, look for someone who makes you feel comfortable and listens to your needs. You also want to find a professional who knows the community and current market. Top agents, like those who advertise in Homes & Land Magazine, are great resources for information about their area.
Crunch the Numbers
It's extremely important to have a clear idea of your financial situation before you start looking for a home. Not only will this help you set a budget, but financial records will come in handy when you start shopping for a loan. Make sure to talk with several lenders before making a decision. While interest rates and closing costs are important considerations, you also want to your lender to explain things in a way you can understand and make time for your questions.
Compare Neighborhoods
Focus on areas that meet your needs, budget and personal taste. Factors to pay special attention to include convenient access to transportation, employment, schools and stores. The right neighborhood should also make you feel safe, offer recreational opportunities, and have adequate police and fire protection. To help find your ideal location, consult with your real estate agent and try speaking with residents in the neighborhood to learn more information.
Inspect Houses Carefully
During any house showing, be alert for signs of structural weakness, water damage, pest infestations or other things that just don't "look" right. Conversely, don't overlook an otherwise suitable home just because it has cosmetic problems like outdated carpet or a bad paint job. Most importantly, never purchase a home without first having it thoroughly examined by a professional home inspector.
Negotiation and Contingencies
Don't rely on price as your sole bargaining chip. Contingencies may be written into the contract to specify how certain aspects of the transaction will be handled--everything from standard contingencies like pest inspections, to contingencies for the seller to leave the drapes or pay the buyer's closing costs. Make sure any verbal agreements are written into the contract and that you read ALL the fine print before signing. If you have questions, consult with your real estate agent or real estate attorney.
The Closing
The closing represents the completion of the sale. Be prepared to sign numerous documents as well as pay funds for loan costs, property taxes, insurance and other fees. Try and get a copy of the documents prior to the close so you can contact the settlement agent or escrow officer if any of the information seems wrong or is unclear.
http://barnettrealestate.homesandland.com/Site/Articles/index.cfm?WEBPAGEID=&WEBSITEID=22842&Editorial=EA_Buying
Know What You Need
The first step is being honest about your needs versus your wants. For example, you may dream of having a big backyard for gardening. But if you have a busy schedule, a low-maintenance townhouse probably makes more sense. You also have to think about the long term. Will the house still meet your needs--or your family's needs--5 years from now?
Find a Real Estate Agent
A real estate agent can pre-qualify you for a loan, answer questions about neighborhoods, recommend lenders and even coordinate the closing--all while saving you time and money. To find the right agent, look for someone who makes you feel comfortable and listens to your needs. You also want to find a professional who knows the community and current market. Top agents, like those who advertise in Homes & Land Magazine, are great resources for information about their area.
Crunch the Numbers
It's extremely important to have a clear idea of your financial situation before you start looking for a home. Not only will this help you set a budget, but financial records will come in handy when you start shopping for a loan. Make sure to talk with several lenders before making a decision. While interest rates and closing costs are important considerations, you also want to your lender to explain things in a way you can understand and make time for your questions.
Compare Neighborhoods
Focus on areas that meet your needs, budget and personal taste. Factors to pay special attention to include convenient access to transportation, employment, schools and stores. The right neighborhood should also make you feel safe, offer recreational opportunities, and have adequate police and fire protection. To help find your ideal location, consult with your real estate agent and try speaking with residents in the neighborhood to learn more information.
Inspect Houses Carefully
During any house showing, be alert for signs of structural weakness, water damage, pest infestations or other things that just don't "look" right. Conversely, don't overlook an otherwise suitable home just because it has cosmetic problems like outdated carpet or a bad paint job. Most importantly, never purchase a home without first having it thoroughly examined by a professional home inspector.
Negotiation and Contingencies
Don't rely on price as your sole bargaining chip. Contingencies may be written into the contract to specify how certain aspects of the transaction will be handled--everything from standard contingencies like pest inspections, to contingencies for the seller to leave the drapes or pay the buyer's closing costs. Make sure any verbal agreements are written into the contract and that you read ALL the fine print before signing. If you have questions, consult with your real estate agent or real estate attorney.
The Closing
The closing represents the completion of the sale. Be prepared to sign numerous documents as well as pay funds for loan costs, property taxes, insurance and other fees. Try and get a copy of the documents prior to the close so you can contact the settlement agent or escrow officer if any of the information seems wrong or is unclear.
http://barnettrealestate.homesandland.com/Site/Articles/index.cfm?WEBPAGEID=&WEBSITEID=22842&Editorial=EA_Buying
Monday, October 29, 2007
Mortgage mates, property pals and home buying friends
At some point we've all played the "wouldn't it be nice to live there" game, where we press our noses up to the estate agents window like hungry children eyeing up the cakes in a bakery, wishing we could afford the homes that are way too expensive for us. We all have aspirations far beyond our wallets from time to time, but more and more first time buyers are finding that they simply cannot afford to buy anywhere as property prices in the UK have rocketed to such levels that the first step onto the ladder has begun to look more like an impossible leap.
Now a new breed of buyer has begun to emerge, or maybe I should say ‘evolve’, because that’s what happens when nature finds a way around a problem, who have decided to tackle the issue of affordability head on, they are the co-buyers. If you’ve not been near your TV, radio or favorite newspaper recently you’d be excused for not having heard of this home buying movement. Put simply, co-buying is where two or more people buy a property together to join funds, divide of all the costs, and afford to buy years sooner than they could have done alone. Nothing new there, as friends and family have been doing that for an age now, what is new is the rise in the popularity of searching for your ideal mortgage mate on the internet.
Richard Cohn, Founding Director of Shared Spaces Limited, introduced us to the concept of co-buying with www.SharedSpaces.co.uk, launched in December 2005. He explains, “I flat shared for years before buying, and made some great friends along the way, and it was during this time that I came to the conclusion that was to lead to the creation of SharedSpaces. If you can flat-share with complete strangers with great success, why can’t people take it to the next level and buy together?”
Of course there is more to it than just that because buying is a far bigger financial commitment than renting, but Cohn suggests that with the correct legal framework (a document called a ‘Deed of Trust’ that costs only a few hundred pounds from any solicitor that protects your legal rights and provides a roadmap for the relationship), mortgage payment protection insurance (to protect you and your co-owners from hardship should you loose your jobs or are unable to work due to illness), and time (as much time as you need to get to know your potential co-buyer well enough to call them a friend or a business partner in the process), there is no reason why you cannot have a successful co-buying experience.
SharedSpaces.co.uk has over 2,500 registered members across the UK looking for someone else to buy a property with, joined by a common goal, to fight the affordability gap. Whether you are a key worker or a city high flyer if you’re looking for a mortgage mate, a property pal or a future friend to buy your first home with there seems to be plenty of people to choose from. I don’t know whether co-buying solves the long term problem of property prices rising faster than salaries, but it sure does seem to offer an option for those who have been left behind.
http://www.afroarticles.com/article-dashboard/Article/Mortgage-mates,-property-pals-and-home-buying-friends/3426
Now a new breed of buyer has begun to emerge, or maybe I should say ‘evolve’, because that’s what happens when nature finds a way around a problem, who have decided to tackle the issue of affordability head on, they are the co-buyers. If you’ve not been near your TV, radio or favorite newspaper recently you’d be excused for not having heard of this home buying movement. Put simply, co-buying is where two or more people buy a property together to join funds, divide of all the costs, and afford to buy years sooner than they could have done alone. Nothing new there, as friends and family have been doing that for an age now, what is new is the rise in the popularity of searching for your ideal mortgage mate on the internet.
Richard Cohn, Founding Director of Shared Spaces Limited, introduced us to the concept of co-buying with www.SharedSpaces.co.uk, launched in December 2005. He explains, “I flat shared for years before buying, and made some great friends along the way, and it was during this time that I came to the conclusion that was to lead to the creation of SharedSpaces. If you can flat-share with complete strangers with great success, why can’t people take it to the next level and buy together?”
Of course there is more to it than just that because buying is a far bigger financial commitment than renting, but Cohn suggests that with the correct legal framework (a document called a ‘Deed of Trust’ that costs only a few hundred pounds from any solicitor that protects your legal rights and provides a roadmap for the relationship), mortgage payment protection insurance (to protect you and your co-owners from hardship should you loose your jobs or are unable to work due to illness), and time (as much time as you need to get to know your potential co-buyer well enough to call them a friend or a business partner in the process), there is no reason why you cannot have a successful co-buying experience.
SharedSpaces.co.uk has over 2,500 registered members across the UK looking for someone else to buy a property with, joined by a common goal, to fight the affordability gap. Whether you are a key worker or a city high flyer if you’re looking for a mortgage mate, a property pal or a future friend to buy your first home with there seems to be plenty of people to choose from. I don’t know whether co-buying solves the long term problem of property prices rising faster than salaries, but it sure does seem to offer an option for those who have been left behind.
http://www.afroarticles.com/article-dashboard/Article/Mortgage-mates,-property-pals-and-home-buying-friends/3426
Friday, October 26, 2007
Low Down Payment Options
Your down payment is the core of your mortgage. It affects:
* The lender's decision
* Your loan amount and your closing costs
* Mortgage type
* The size of your monthly payments
* Your mortgage interest rate
* Your amount of available cash
* Whether you'll pay mortgage insurance
The more you put down (the bigger your down payment), the less you'll have to borrow. That means lower monthly payments and lower overall mortgage costs. You'll start out with more equity in your home and have an easier time convincing a lender that you're a good risk.
A smaller down payment can cost you substantially more in the long run, but it will increase your current cash flow. If you don't have much money saved but expect to increase your future earning power, it might be the best way to go.
The benefits of putting down less
In today's market, there are a variety of mortgage options available for those who:
* Have strong current income but not a lot of savings
* Are first-time homebuyers whose high rents have left them strapped for cash
* Have low-to-moderate incomes and few cash reserves
* Are "move-up" buyers looking to buy a larger home without large cash reserves
Even if you already have a nest egg, there are many sound reasons why choosing a no or low down payment makes sense. A no/low down payment:
* Keeps your assets where they are - in higher-yielding investments or current lifestyle expenses (day care, tuition payments, recreational activities)
* Potentially gives you a larger tax deduction (Consult your tax advisor for details)
* Lets you buy right away and start turning rent payments into future equity in a home
* Frees up cash for other home buying expenses such as furniture, moving and closing costs
Recommended loans
Wells Fargo Home Mortgage offers several mortgages with low or no down payment. Click on the links below to go to our mortgage site, or use our Home Loan Workbench® to get home financing packages, estimated closing costs, and much more in an easy-to-understand itemized fashion.
* FHA Mortgage - Allows all qualified buyers to take advantage of a low down payment with flexible qualifying guidelines.
* VA Mortgage - Permits qualified veterans, reservists, and active servicemen and women to secure a loan up to a specified amount with no down payment and flexible qualifying guidelines.
https://www.wellsfargo.com/home_center/buying/articles/cis_hc_atcl_financinglowdown.jhtml
* The lender's decision
* Your loan amount and your closing costs
* Mortgage type
* The size of your monthly payments
* Your mortgage interest rate
* Your amount of available cash
* Whether you'll pay mortgage insurance
The more you put down (the bigger your down payment), the less you'll have to borrow. That means lower monthly payments and lower overall mortgage costs. You'll start out with more equity in your home and have an easier time convincing a lender that you're a good risk.
A smaller down payment can cost you substantially more in the long run, but it will increase your current cash flow. If you don't have much money saved but expect to increase your future earning power, it might be the best way to go.
The benefits of putting down less
In today's market, there are a variety of mortgage options available for those who:
* Have strong current income but not a lot of savings
* Are first-time homebuyers whose high rents have left them strapped for cash
* Have low-to-moderate incomes and few cash reserves
* Are "move-up" buyers looking to buy a larger home without large cash reserves
Even if you already have a nest egg, there are many sound reasons why choosing a no or low down payment makes sense. A no/low down payment:
* Keeps your assets where they are - in higher-yielding investments or current lifestyle expenses (day care, tuition payments, recreational activities)
* Potentially gives you a larger tax deduction (Consult your tax advisor for details)
* Lets you buy right away and start turning rent payments into future equity in a home
* Frees up cash for other home buying expenses such as furniture, moving and closing costs
Recommended loans
Wells Fargo Home Mortgage offers several mortgages with low or no down payment. Click on the links below to go to our mortgage site, or use our Home Loan Workbench® to get home financing packages, estimated closing costs, and much more in an easy-to-understand itemized fashion.
* FHA Mortgage - Allows all qualified buyers to take advantage of a low down payment with flexible qualifying guidelines.
* VA Mortgage - Permits qualified veterans, reservists, and active servicemen and women to secure a loan up to a specified amount with no down payment and flexible qualifying guidelines.
https://www.wellsfargo.com/home_center/buying/articles/cis_hc_atcl_financinglowdown.jhtml
Thursday, October 25, 2007
Covering The Bases: Home Buying
Buying a home is an exhilarating feeling. It can be one of life's biggest rewards. It has the potential to serve not only as your home for many years, but as the basis of your financial portfolio. as such you should never jump into a home purchase. It simply makes sense to take your time and ensure that you are getting what you are paying for. A home is a complicated conglomeration of systems that are all subject to stress, wear, and deterioration and due to this fact there are a few things that should be examined closely before purchasing any property new or old.
Homes inspections are the best way to ensure that the home you are considering buying is sound. Be careful of sellers who want to have the inspection process skipped. In skipping this process you could be buying a huge problem. There are a few things in particular that you should have the home inspector check for.
* Mold & Mildew - In previous years this never seemed to be a huge issue. However in recent times it has become a hot button issue with many due to the health concerns concerned with mold. Mold is fairly insidious and can thrive in the most unlikely of places. All mold really needs is organic material like wood and a source of moisture. This is usually attributed to a leak or a crack in the home.
* Plumbing - With pipes and water running through almost every wall in a home it is essential to ensure the proper working of the home's plumbing. Faulty plumbing can be costly to fix and can lead to problems with rotting, mold and other unsafe living conditions. Leaky pipes can also lead to extensive home repairs and some sellers will try to cover up water damage with new paint so be sure to have the plumbing checked.
* Electrical - This is a problem that has two different sides. Older homes can have wiring that is outdated, worn or is not sufficient to handle the high power draw of modern appliances. Conversely, new home sometimes have slipshod wiring that has shorts and faults. These can all be large fire hazards and quite detrimental to a home's safety.
Always be careful when purchasing a home. After all it is the safety of you and your family that is concerned here. Have a complete home inspection done on any property you are considering and have professionals check through the various systems if necessary.
http://www.amazines.com/Advice/article_detail.cfm/256091?articleid=256091
Homes inspections are the best way to ensure that the home you are considering buying is sound. Be careful of sellers who want to have the inspection process skipped. In skipping this process you could be buying a huge problem. There are a few things in particular that you should have the home inspector check for.
* Mold & Mildew - In previous years this never seemed to be a huge issue. However in recent times it has become a hot button issue with many due to the health concerns concerned with mold. Mold is fairly insidious and can thrive in the most unlikely of places. All mold really needs is organic material like wood and a source of moisture. This is usually attributed to a leak or a crack in the home.
* Plumbing - With pipes and water running through almost every wall in a home it is essential to ensure the proper working of the home's plumbing. Faulty plumbing can be costly to fix and can lead to problems with rotting, mold and other unsafe living conditions. Leaky pipes can also lead to extensive home repairs and some sellers will try to cover up water damage with new paint so be sure to have the plumbing checked.
* Electrical - This is a problem that has two different sides. Older homes can have wiring that is outdated, worn or is not sufficient to handle the high power draw of modern appliances. Conversely, new home sometimes have slipshod wiring that has shorts and faults. These can all be large fire hazards and quite detrimental to a home's safety.
Always be careful when purchasing a home. After all it is the safety of you and your family that is concerned here. Have a complete home inspection done on any property you are considering and have professionals check through the various systems if necessary.
http://www.amazines.com/Advice/article_detail.cfm/256091?articleid=256091
Wednesday, October 24, 2007
Tips To Help You Sell A Vacant House
The ad looks too good to be true -- a home with all the prerequisites you want is on the market in a fabulous neighborhood. The community is near work, the schools are great, there are lots of activities nearby -- and the asking price is competitive. Remember first impressions. Regardless of whether your home is vacant or not, its appeal from the street is crucial in making a positive impact with potential buyers. Paint or fix up the front entrance as required. If you have a lawn, keep it mowed. Hire a neighborhood teen or local landscape service to keep it maintained. If you have an automated irrigation or sprinkler system, you'll want to leave it on, or ask a neighbor to water for you. This is especially crucial in regions with scorching summers. If your house is on the market in fall, be sure you or someone you hire keeps leaves cleaned up. Likewise, if it's winter and you live in a snowy area, be sure driveways and entrances are cleared. Spruce up landscaping before you leave. Plant some new shrubs, lay down some fresh ground cover, or brighten it up with some colorful annuals. Go through every room of your house, paintbrush in hand, and touch up any walls that have been scuffed or marked up. After moving furniture out, you're sure to find a slew of such marks. Walls painted in bold, bright colors are wonderful attention-getters when complemented by furniture, rugs, and accessories. However, in an empty room, these bold colors may put buyers off. You may want to consider painting neutral colors throughout the house before you sell. Get carpets professionally cleaned once everything is moved out. If the floors aren't taken care of, the prospective home buyer may wonder what else isn't? Clean your house thoroughly in every nook and cranny -- including windows and fireplaces -- before you let potential buyers look at it. If at all possible, try to leave some furniture in the house. This will give prospective buyers a sense of size and proportion -- and a place to sit down. Empty rooms tend to look smaller than they actually are. Don't set your deserted house up for potential break-ins. You may want to invest in exterior sensor lights that automatically turn on when it gets dark and turn off at sunrise. Make sure you cancel your newspaper subscription and forward your mail. If you have a security alarm, use it -- just be sure you leave your entrance code with your real estate broker. Be sure you review the provisions of your homeowners insurance. Many companies have a cap on how long coverage will last while the property is vacant.
http://realtytimes.com/nl/nlpages101/6vacant.htm?open&id=jesselimon
When the prospective buyers approach the newly listed home, hopes plummet -- the place is vacant. Unfortunately, a home which is merely "lived-in" when furnished and occupied may look bare and blemished when empty. But the good news is that selling a vacant home isn't an impossible task, especially if you follow these pointers:
As you prepare a vacant home for sale, also consider this idea: Some buyers like the flexibility that comes with buying a vacant house. They can move in as soon or as late as they'd like, and they don't have to worry about floors getting soiled and walls getting banged up when you move out.
http://realtytimes.com/nl/nlpages101/6vacant.htm?open&id=jesselimon
The Home Buying Process - In a Nutshell
The Loan Pre-Approval Process
Obtaining pre-approval for a home loan cannot be stressed enough. Not only does it assure you that you are looking in the correct price range, it also assures the seller that you are a legitimate buyer. If you need a recommendation of a lender, I can provide you with several contact names. Searching for a home can definitely start in advance of the loan pre-approval, but it is best to be pre-approved before submitting an offer to a seller.
Let's Make an Offer
When you find the right home, the next step is to write an offer on the property. Keep in mind that if you like it, chances are you are not alone. Acting quickly can make the difference between living there and telling your friends about the house that got away. Writing up an offer generally takes about an hour. Once the offer is completed I will call the listing agent and let them know that I have a buyer for their listing. I will need to include a pre-approval letter from your lender and if there are multiple offers it can often work in your favor to include a personal letter talking about the house and why you want to purchase it.
How Firm is my Foundation? The Inspection...
Most offers to purchase are written subject to the buyer approving of a home inspection. I strongly advise doing this. The cost (around $400) is paid for by you, but it is cheap insurance if it keeps you from buying a money pit. The inspection will cover items such as the roof, gutters, wiring, plumbing, foundation, framing and insulation. It is a good idea to accompany the inspector that you hire so that you can learn the good features about the home as well as the areas that need attention. Should there be other areas of concern (heater, oil tank, foundation issues, etc.) you may want to hire a specialist in those areas. Sewer scopes are also common in the home inspection phase. I will be there during any inspections. If some items come up during the inspection that are not satisfactory to you, it is possible to negotiate with the seller to make the necessary repairs. The seller is not obligated to agree to do this, so if they don't, you are not obligated to complete the purchase.
Once you have approved the home inspection, the only hurdle left is financing. Since you have taken care of most of this by getting pre-approved, completing the process only takes about two weeks. The two main items needed are: an appraisal on the home and a preliminary title policy showing that the property is free of liens or other clouds on the title.
The Financing Process
Appraisers know the purchase price when they do their appraisal, so it is rare for an appraisal to come in above or below the agreed upon price. The main concern with appraisals has to do with the work orders. Quite often, appraisers set a value on a home conditioned upon certain repairs being made. If the repairs are not completed, the appraisal is not acceptable to the lender and the financing is not approved. This can be a problem if your desire is to get a good buy on a home that needs work, with the intention of fixing it up yourself later. I have met many appraisers on site and have a very good idea of what will and what will not get called out. I will council you during the offer preparation as to how to deal with these issues.
A Clear title is usually not difficult to obtain. Rarely do transactions fail due to unmarketable title. You will have an opportunity to review the preliminary title policy prior to signing the closing papers.
When loan approval is obtained, closing documents are drawn up and sent to escrow. The escrow agent's function is to facilitate an orderly transfer of ownership from seller to buyer. Taxes need to be prorated, any underlying liens on the property must be paid off, and many documents will be reviewed, signed and notarized. Utility transfers may possibly be handled by escrow, or you and the seller may agree to handle these on your own.
The Escrow Process - The Sale Closes. Time to Move In!
The signing of documents does not constitute closing. Closing occurs without you being present, when the documents are recorded and the proceeds check is available for the seller. If any questions or concerns arise after closing I will be there to help you.
http://localism.com/article/50242/The-Home-Buying-Process-In-a
Obtaining pre-approval for a home loan cannot be stressed enough. Not only does it assure you that you are looking in the correct price range, it also assures the seller that you are a legitimate buyer. If you need a recommendation of a lender, I can provide you with several contact names. Searching for a home can definitely start in advance of the loan pre-approval, but it is best to be pre-approved before submitting an offer to a seller.
Let's Make an Offer
When you find the right home, the next step is to write an offer on the property. Keep in mind that if you like it, chances are you are not alone. Acting quickly can make the difference between living there and telling your friends about the house that got away. Writing up an offer generally takes about an hour. Once the offer is completed I will call the listing agent and let them know that I have a buyer for their listing. I will need to include a pre-approval letter from your lender and if there are multiple offers it can often work in your favor to include a personal letter talking about the house and why you want to purchase it.
How Firm is my Foundation? The Inspection...
Most offers to purchase are written subject to the buyer approving of a home inspection. I strongly advise doing this. The cost (around $400) is paid for by you, but it is cheap insurance if it keeps you from buying a money pit. The inspection will cover items such as the roof, gutters, wiring, plumbing, foundation, framing and insulation. It is a good idea to accompany the inspector that you hire so that you can learn the good features about the home as well as the areas that need attention. Should there be other areas of concern (heater, oil tank, foundation issues, etc.) you may want to hire a specialist in those areas. Sewer scopes are also common in the home inspection phase. I will be there during any inspections. If some items come up during the inspection that are not satisfactory to you, it is possible to negotiate with the seller to make the necessary repairs. The seller is not obligated to agree to do this, so if they don't, you are not obligated to complete the purchase.
Once you have approved the home inspection, the only hurdle left is financing. Since you have taken care of most of this by getting pre-approved, completing the process only takes about two weeks. The two main items needed are: an appraisal on the home and a preliminary title policy showing that the property is free of liens or other clouds on the title.
The Financing Process
Appraisers know the purchase price when they do their appraisal, so it is rare for an appraisal to come in above or below the agreed upon price. The main concern with appraisals has to do with the work orders. Quite often, appraisers set a value on a home conditioned upon certain repairs being made. If the repairs are not completed, the appraisal is not acceptable to the lender and the financing is not approved. This can be a problem if your desire is to get a good buy on a home that needs work, with the intention of fixing it up yourself later. I have met many appraisers on site and have a very good idea of what will and what will not get called out. I will council you during the offer preparation as to how to deal with these issues.
A Clear title is usually not difficult to obtain. Rarely do transactions fail due to unmarketable title. You will have an opportunity to review the preliminary title policy prior to signing the closing papers.
When loan approval is obtained, closing documents are drawn up and sent to escrow. The escrow agent's function is to facilitate an orderly transfer of ownership from seller to buyer. Taxes need to be prorated, any underlying liens on the property must be paid off, and many documents will be reviewed, signed and notarized. Utility transfers may possibly be handled by escrow, or you and the seller may agree to handle these on your own.
The Escrow Process - The Sale Closes. Time to Move In!
The signing of documents does not constitute closing. Closing occurs without you being present, when the documents are recorded and the proceeds check is available for the seller. If any questions or concerns arise after closing I will be there to help you.
http://localism.com/article/50242/The-Home-Buying-Process-In-a
Friday, October 19, 2007
Home Prices Are Falling
U.S. home prices in major cities are falling at the fastest rate in 16 years, Standard & Poor's reported Tuesday.
For 10 major cities, home prices fell 0.6% in July and are down 4.5% in the past year, the fastest decline since 1991, according to the Case-Shiller home price index released by S&P. For 20 major cities, prices fell 0.4% in July and are down 3.9% in the past year, the largest decline in the seven-year history of the index.
The Case-Shiller index, which tracks multiple sales of the same homes, is considered by many observers to be the best gauge of national and metro real-estate values.
Falling prices make it more difficult for homeowners to tap their home equity or refinance their mortgages. Millions of homeowners who took out adjustable-rate loans in 2005 and 2006 face sharply higher mortgage payments this year and next, with foreclosures having already soared as a result of payment resets.
The last time prices fell so much, it took more than eight years for home prices to return to their peak level.
In a separate report, the National Association of Realtors said sales of existing homes fell to a five-year low of 5.50 million units annualized in August, while inventories of unsold homes rose to an 18-year high. See full story.
"The housing outlook remains grim as home sales decline and inventory remains elevated," wrote Michelle Meyer, an economist for Lehman Bros. She expects a cumulative 15% decline from the peak in the quarterly national Case-Shiller index.
Economists at Goldman Sachs said the latest data are on track to meet its forecast for 7% declines in home prices this year and next.
There's no end in sight, but it's not a disaster for most people, said Robert Shiller, chief economist for MacroMarkets LLC.
"The big effects are likely to come next year," Shiller told MarketWatch. "We might see a decline in consumer spending and a decline in confidence that could lead to a recession." Listen to an interview with economist Robert Shiller.
Prices are lower in 15 of the 20 cities compared with a year ago, according to Case-Shiller. The biggest declines are the Rust Belt and in the formerly boom towns along the coasts. Prices are holding up in the Pacific Northwest and in areas of the South.
Here are the 20 cities covered by the Case-Shiller index, ranked from worst to best:
http://www.realestatejournal.com/buysell/markettrends/20070927-nutting.html
For 10 major cities, home prices fell 0.6% in July and are down 4.5% in the past year, the fastest decline since 1991, according to the Case-Shiller home price index released by S&P. For 20 major cities, prices fell 0.4% in July and are down 3.9% in the past year, the largest decline in the seven-year history of the index.
The Case-Shiller index, which tracks multiple sales of the same homes, is considered by many observers to be the best gauge of national and metro real-estate values.
Falling prices make it more difficult for homeowners to tap their home equity or refinance their mortgages. Millions of homeowners who took out adjustable-rate loans in 2005 and 2006 face sharply higher mortgage payments this year and next, with foreclosures having already soared as a result of payment resets.
The last time prices fell so much, it took more than eight years for home prices to return to their peak level.
In a separate report, the National Association of Realtors said sales of existing homes fell to a five-year low of 5.50 million units annualized in August, while inventories of unsold homes rose to an 18-year high. See full story.
"The housing outlook remains grim as home sales decline and inventory remains elevated," wrote Michelle Meyer, an economist for Lehman Bros. She expects a cumulative 15% decline from the peak in the quarterly national Case-Shiller index.
Economists at Goldman Sachs said the latest data are on track to meet its forecast for 7% declines in home prices this year and next.
There's no end in sight, but it's not a disaster for most people, said Robert Shiller, chief economist for MacroMarkets LLC.
"The big effects are likely to come next year," Shiller told MarketWatch. "We might see a decline in consumer spending and a decline in confidence that could lead to a recession." Listen to an interview with economist Robert Shiller.
Prices are lower in 15 of the 20 cities compared with a year ago, according to Case-Shiller. The biggest declines are the Rust Belt and in the formerly boom towns along the coasts. Prices are holding up in the Pacific Northwest and in areas of the South.
Here are the 20 cities covered by the Case-Shiller index, ranked from worst to best:
http://www.realestatejournal.com/buysell/markettrends/20070927-nutting.html
Thursday, October 18, 2007
Be credit-wise. Tips for credit cards in Australia.
These days, life without a credit card would be hard to imagine. We have become so used to the convenience of "plastic", we don't leave home without it. (Sound familiar?) While you can't dispute the ease and convenience of not having to pay in cash at the supermarket, petrol pump or pub, here are some handy credit card reminders.
1) Say no to cash advances
Some people just don't get it, but the bank does. The Interest-free periods offered on credit card accounts never apply to cash advances. In the majority of cases, you will pay interest on the cash right from the second you withdraw it from the ATM or over the counter. The dollar penalty can really add up, so it's best not to do it. Ever.
2) Watch out for Store Cards. Loyalty can cost you
How often have you been at the cash register and asked if you would like to apply for a store card? Probably plenty of times. Department stores such as David Jones and Myer may offer you the benefits of customer discounts, added warranties and extended credit, but they aren't cheap. Although you don't pay an annual fee, the interest rate can be considerably higher (sometimes several percent) than alternative credit cards. It's fine to use them for store specials and loyalty benefits, but pay the balance in full by the due date. In this way you avoid being whacked with huge interest charges.
3. Choose a card that matches your lifestyle.
Think about your spending habits and patterns. For example: if you use a card for extended credit and don't pay off the full balance each month, just a basic payment, choose a card with a lower rate. It may not offer any interest-free period, but the lower interest rate should save you more dollars over time.
If you use your card for everyday groceries or filling up the car, go for credit card with maximum interest-free days. Make sure you pay it off in full each month. This way you get the benefit of up to 55 interest-free days on purchases, as well as rewards, discounts and frequent flyer points. But watch the annual fees on rewards cards.
4. Interest-free periods are void unless you pay in full
Don't let your credit card get out of control. To avoid paying interest on your purchases, you must pay the full balance -- that figure in black and white on your statement (not just the minimum payment required) by the due date. If you don't, be warned. You will be charged interest right back to the date of purchase on each item. In effect, you forfeit the interest-free period on those purchases.
5. Search beyond the local banks
These days, there's a lot more choice out there - not just the usual local banks. Look at credit unions, building societies, community banks, boutique and online banks. Chances are you may get offered better interest rates or lower fees than the big banks because these new providers are anxious to win business or they are non-profit organisations. We put this theory to the test. We tried HSBC and came up with 5 different types of credit card.
6. Do you qualify for a "relationship discount"?
If you consolidate your banking business and finances with one lender or bank, you can qualify for a special treatment. Loyalty does have its rewards. You can enjoy home and personal loan interest rate discounts, term deposit bonuses, savings account fee waivers and of course, credit card annual fee waivers.
7. Do you qualify for annual fee waivers?
If you spend enough on your credit card on an annual basis, some institutions offer to waive the annual fee. For instance: If your card spend is more than $5000-$10,000 a year, you could choose a card with all the benefits you want and avoid the annual fee. However, make sure you use your card to make purchases you were going to make anyway. Spending up big for the sake of reducing fees or earning rewards points is false economy.
8. Sweet deals? Don't be distracted by them.
Introductory discount rates, fabulous reward programmes and special insurance offers. Some lenders offer enticements on credit cards that can make a big impression on first glance. Be practical. Look at the overall, ongoing cost of credit of any card option. Compare the standard interest rate, interest-free period and annual fees - and weigh these up against the real value (if any) of the added extras.
Credit cards are great. But remember that you are the one in control and responsible for your debt. If you can't resist a bargain or a shopping centre blitz, leave the card at home. Pay cash.
http://www.ideamarketers.com/?Be_credit-wise__Tips_for_credit_cards_in_Australia&articleid=220693&from=PROFILE
1) Say no to cash advances
Some people just don't get it, but the bank does. The Interest-free periods offered on credit card accounts never apply to cash advances. In the majority of cases, you will pay interest on the cash right from the second you withdraw it from the ATM or over the counter. The dollar penalty can really add up, so it's best not to do it. Ever.
2) Watch out for Store Cards. Loyalty can cost you
How often have you been at the cash register and asked if you would like to apply for a store card? Probably plenty of times. Department stores such as David Jones and Myer may offer you the benefits of customer discounts, added warranties and extended credit, but they aren't cheap. Although you don't pay an annual fee, the interest rate can be considerably higher (sometimes several percent) than alternative credit cards. It's fine to use them for store specials and loyalty benefits, but pay the balance in full by the due date. In this way you avoid being whacked with huge interest charges.
3. Choose a card that matches your lifestyle.
Think about your spending habits and patterns. For example: if you use a card for extended credit and don't pay off the full balance each month, just a basic payment, choose a card with a lower rate. It may not offer any interest-free period, but the lower interest rate should save you more dollars over time.
If you use your card for everyday groceries or filling up the car, go for credit card with maximum interest-free days. Make sure you pay it off in full each month. This way you get the benefit of up to 55 interest-free days on purchases, as well as rewards, discounts and frequent flyer points. But watch the annual fees on rewards cards.
4. Interest-free periods are void unless you pay in full
Don't let your credit card get out of control. To avoid paying interest on your purchases, you must pay the full balance -- that figure in black and white on your statement (not just the minimum payment required) by the due date. If you don't, be warned. You will be charged interest right back to the date of purchase on each item. In effect, you forfeit the interest-free period on those purchases.
5. Search beyond the local banks
These days, there's a lot more choice out there - not just the usual local banks. Look at credit unions, building societies, community banks, boutique and online banks. Chances are you may get offered better interest rates or lower fees than the big banks because these new providers are anxious to win business or they are non-profit organisations. We put this theory to the test. We tried HSBC and came up with 5 different types of credit card.
6. Do you qualify for a "relationship discount"?
If you consolidate your banking business and finances with one lender or bank, you can qualify for a special treatment. Loyalty does have its rewards. You can enjoy home and personal loan interest rate discounts, term deposit bonuses, savings account fee waivers and of course, credit card annual fee waivers.
7. Do you qualify for annual fee waivers?
If you spend enough on your credit card on an annual basis, some institutions offer to waive the annual fee. For instance: If your card spend is more than $5000-$10,000 a year, you could choose a card with all the benefits you want and avoid the annual fee. However, make sure you use your card to make purchases you were going to make anyway. Spending up big for the sake of reducing fees or earning rewards points is false economy.
8. Sweet deals? Don't be distracted by them.
Introductory discount rates, fabulous reward programmes and special insurance offers. Some lenders offer enticements on credit cards that can make a big impression on first glance. Be practical. Look at the overall, ongoing cost of credit of any card option. Compare the standard interest rate, interest-free period and annual fees - and weigh these up against the real value (if any) of the added extras.
Credit cards are great. But remember that you are the one in control and responsible for your debt. If you can't resist a bargain or a shopping centre blitz, leave the card at home. Pay cash.
http://www.ideamarketers.com/?Be_credit-wise__Tips_for_credit_cards_in_Australia&articleid=220693&from=PROFILE
Wednesday, October 17, 2007
Los Altos real estate
The city of Los Altos, California, home to over 27,000 residents, is located in Santa Clara County, at the south end of the San Francisco Peninsula. This peaceful suburb stretches seven miles and is nestled in between San Jose and San Francisco. Los Altos preserves its small town charm by housing a few well placed shopping centers and office properties along the Foothill Expressway and El Camino Real. The Los Altos real estate scene mostly consists of charming single family homes for sale along tree-lined streets, as well as upscale town houses, condominiums and even estate size homes on large lots.
Los Altos, California is well catered to families with its excellent schools, a safe community and recreational opportunities. The Los Altos School District and the Mountain View-Los Altos Union High School District provide area children with a real well-respected education. Los Altos home owners are very active in the community, ensuring that it maintains a high quality of life. Home owners can enjoy the ideal climate playing sports, picnicking, swimming and golfing at local and nearby parks such as Hillview Community Center and Park and Los Altos Golf & Country Club. There is also a large equestrian presence in Los Altos, and many residents are even able to house horses on their estates.
Living in Silicon Valley provides many employment opportunities. The area is home to some of the largest technology businesses such as Cisco, Adobe, eBay and so many more. Los Altos is conveniently positioned with freeways 101, 280 and 82 providing access to San Jose, San Francisco and the other various bay towns. The Santa Clara Transit Authority and Bay Area Rapid Transit (BART) provide public transportation, connecting Los Altos to the towns in the surrounding communities in the Santa Clara Valley. For getting around the rest of California, the nation and the world, the San Jose International Airport is just 20 miles to the south and San Francisco International Airport is just 27 miles north of most homes.
http://www.realestatearticledirectory.com/articles/california-real-estate/article124.html
Los Altos, California is well catered to families with its excellent schools, a safe community and recreational opportunities. The Los Altos School District and the Mountain View-Los Altos Union High School District provide area children with a real well-respected education. Los Altos home owners are very active in the community, ensuring that it maintains a high quality of life. Home owners can enjoy the ideal climate playing sports, picnicking, swimming and golfing at local and nearby parks such as Hillview Community Center and Park and Los Altos Golf & Country Club. There is also a large equestrian presence in Los Altos, and many residents are even able to house horses on their estates.
Living in Silicon Valley provides many employment opportunities. The area is home to some of the largest technology businesses such as Cisco, Adobe, eBay and so many more. Los Altos is conveniently positioned with freeways 101, 280 and 82 providing access to San Jose, San Francisco and the other various bay towns. The Santa Clara Transit Authority and Bay Area Rapid Transit (BART) provide public transportation, connecting Los Altos to the towns in the surrounding communities in the Santa Clara Valley. For getting around the rest of California, the nation and the world, the San Jose International Airport is just 20 miles to the south and San Francisco International Airport is just 27 miles north of most homes.
http://www.realestatearticledirectory.com/articles/california-real-estate/article124.html
Tuesday, October 16, 2007
Choosing the Right Floor Plan
What describes a great house? It looks good and makes you feel good when you're inside it. It is energy efficient and comfortable. And it facilitates frequent casual interactions among family members.
This last qualification may seem to be such a statement of the obvious it's not worth making. But as our houses have become bigger with more rooms in the shared public area and more bedrooms and bathrooms in the private area, family life has changed. The daily familial interactions that characterized American family life in a smaller house in which everyone was within talking distance of each other are no longer the rule.
Why does this matter? Frequent interactions are the essence of family life. They make us feel good and help maintain household cohesion. Even more important, through the thousands of interactions that we have with our children from infancy to adulthood, they learn a crucial life skill—how to get along with other people.
When children are young, family members will have plenty of contact with one another, whatever kind of house they live in. Very young children require constant supervision. Somewhat older children can play by themselves, but most still want to hang around their parents or caretakers. As the kids approach adolescence, however, they begin to want more independence and most will fan out into the rest of the house. Once those hormones kick in, they can become famously uncommunicative, often reclusive, and many prefer to stay in their own rooms. You can't force them to talk or to spend more time with you.
Points of contact. But the odds are in your favor if you have built "points of contact" into the design of your house so casual interaction and the occasional longer conversation are embedded in the fabric of your family life. When such interactions are a part of the daily routine, they are more easily carried over into your children's teenaged years when you are eager to stay in their loop and they give every indication of wanting to keep you out of it.
For example, instead of placing the stairs in an entry foyer that no one uses—nearly universal in two-story houses—move the stairs to a place where everyone congregates such as the kitchen. Every time your teens pass through you have a chance to catch their ear.
Locating all the bedrooms on the same floor provides another opportunity for casual conversation between parents and teens. The parents, with an eye to their own aging and perhaps a desire for peace and quiet and more privacy, may want their bedroom on the first floor. But if you do this, you may be regarded as an interloper every time you climb the stairs and approach your teenagers' bedroom area. If they spend most of their time there, you will be out of the loop.
The space that connects the bedrooms can also be a point of contact. Instead of a three-foot wide hall that funnels the household in and out of bedrooms, create a larger area onto which all the bedrooms open. When the kids are young, it may become a favorite play area because it's in the middle of everything. When they're older, it can become a spot for endless extended telephone conversations or reading and provide yet another opportunity for a casual encounter between a parent and a teen.
Even the use of a bedroom as a home office will increase familial interactions. If you choose the bedroom closest to the kids' bathroom and leave your door open, you'll have an opportunity to talk every time your teens pass by, as I serendipitously discovered in my own house.
Limiting the number of rooms in the public part of the house increases the likelihood that the family members will congregate in the same spot. If you have only one television and you put it where you want the household to come together, the likelihood of the family actually congregating there increases exponentially.
Some families find the television intrusive and purposely want to keep it out of a family room area. For such households, a separate television room adjacent to the kitchen/family room puts the family in the same part of the house, if not in the same room.
Tension busters. While families need to spend time together, each member also needs to a place for solitude, where he or she can shut the door and tune out the hubbub. The private sanctuary can be an actual room or a designated spot—"my corner of the bedroom," "my closet" or even "my space under the bed." The most important aspect is that it be recognized and respected by the other family members.
In the public area where the household congregates, clutter will inevitably accumulate, but it can be kept to a tolerable level if there is adequate storage. For example, some combination of a closet, base cabinets and book cases in the family room can accommodate all the different items your kids will bring in as they pass through various stages from blocks to Barbies to board games, books, CDs and blankets and pillows for watching television in maximum comfort.
Comings and goings. Every house should have a place for the sendoff and the return. If the architect is inspired, this area might be uplifting and energizing for family members as they sally forth for work or school at the beginning of the day, then at the end of the day, change tacks to become a nurturing and embracing space through which everyone passes as they reenter the refuge of home.
But at the very least, the early-bird launching pad that becomes the evening landing pad should have plenty of storage for seasonal outerwear, sports equipment and a place for the incoming mail. More often than not, however, new houses have a sizeable formal front hall that lacks adequate storage and is in the wrong place for daily use. Most families routinely enter from their garage, often passing through a laundry room and kitchen before they finally reach the front hall. In many cases, their path through the house is marked by a trail of coats, backpacks and mail. To help alleviate this situation, when budget and space allow, many architects and home builders have added a second foyer at the garage entry.
A simpler solution would be to merge the two entries into one so that whether you enter through the garage or the front door, you end up in the same spot, which should have sufficient storage to hold all the outerwear, sports equipment and whatever else a family routinely brings into the house and needs to stash in the entry. A bench would be handy and a cleverly concealed recycling bin for the unwanted junk mail would be a big hit. Should visitors see an errant boot or glove or two, it will convey the message that real people live there.
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Monday, October 15, 2007
Finding the perfect neighborhood for your perfect home
Heart of the city or suburbia? Where are you going to live? When buying a home, we have a general idea of the location we want to live in corresponding with our needs. But no matter where you choose to live, opt for a neighborhood that suits your personality and requirements.
Far from researching every nook and cranny of the area that surrounds your house, just check out if the neighborhood can fulfill your basic wishes. Some common factors that are a priority with most home buyers include:
Facilities:
Every neighborhood should provide these basic facilities or at the very least must be situated close to them. A supermarket, school, green areas (like parks), restaurants, post office, transport links, healthcare services should be easily accessible.
Social Attributes:
Apart from facilities, you should watch out for the crime rate and the safety of the locality. Usually, a residents’ association like a Neighborhood Watch is a good sign. An association like this could also represent the spirit of the community itself. Friendly people are always welcome whether you are looking to make new friends or just need someone to occasionally watch over your pet.
Environmental Qualities:
Not very high on the priority list but a quick run through can help. This basically includes the way a neighborhood looks, quality of the streetlamps, noisiness in the locality etc.
Once you’ve got your list ready, how do you check out the neighborhood? Before you go on the ground and start snooping, do some basic research on the internet. Some search engines provide the facility to check out neighborhoods by just punching in the zip code or the name of a town. Also a general search using key words like crime rate, best neighborhoods, schools etc. can be a great place to start.
Finding a decent locality to live in is one of the many aspects of finding the right home. Research shows that neighborhoods have a great affect on people especially on the growth and academic performance of children. So make sure that you do this aspect of house hunting some justice. For when you open your front door every morning, the sight you behold should make you smile.
Article Source:
http://www.choiceofhomes.com/articles/buying-homes-neighborhood.htm
Far from researching every nook and cranny of the area that surrounds your house, just check out if the neighborhood can fulfill your basic wishes. Some common factors that are a priority with most home buyers include:
Facilities:
Every neighborhood should provide these basic facilities or at the very least must be situated close to them. A supermarket, school, green areas (like parks), restaurants, post office, transport links, healthcare services should be easily accessible.
Social Attributes:
Apart from facilities, you should watch out for the crime rate and the safety of the locality. Usually, a residents’ association like a Neighborhood Watch is a good sign. An association like this could also represent the spirit of the community itself. Friendly people are always welcome whether you are looking to make new friends or just need someone to occasionally watch over your pet.
Environmental Qualities:
Not very high on the priority list but a quick run through can help. This basically includes the way a neighborhood looks, quality of the streetlamps, noisiness in the locality etc.
Once you’ve got your list ready, how do you check out the neighborhood? Before you go on the ground and start snooping, do some basic research on the internet. Some search engines provide the facility to check out neighborhoods by just punching in the zip code or the name of a town. Also a general search using key words like crime rate, best neighborhoods, schools etc. can be a great place to start.
Finding a decent locality to live in is one of the many aspects of finding the right home. Research shows that neighborhoods have a great affect on people especially on the growth and academic performance of children. So make sure that you do this aspect of house hunting some justice. For when you open your front door every morning, the sight you behold should make you smile.
Article Source:
http://www.choiceofhomes.com/articles/buying-homes-neighborhood.htm
Saturday, October 13, 2007
Managing Your Home Based Online Business – 5
In this series of articles so far, I have argued the need to use management practices even if you have your own home based online business. The discipline imposed on yourself will eventually make the business stronger and more profitable. I have touched upon the need for good financial and marketing management in the last two articles, and will now discuss another area of management that affects all others: Time Management.
To anybody working in an office or factory, time management may well be something they hope to escape from by having their own business. A highly pressured executive may well feel the same. They could work at home, where they’re the boss, and they decide what to do and when. They could watch tv when they want, sit up in bed with their laptops, or without, and numerous other symbols of freedom from being an employee.
Of course, these things are all possible when you work from home. Of all types of home business, though, working online is probably the most difficult to manage from a time point of view. Perhaps difficult is the wrong word. It’s actually easy. What is difficult is the high level of potential online distraction and having to resist it. Add the online distractions to those around you at home, and you have the ingredients for an awful lot of wasted time.
What Are All These Distractions?
There are many potential distractions online. Millions of them when you consider there are millions of websites, and millions of advertisements advertising those websites in often exaggerated, but tempting, ways. If you are trying to get traffic to your own website by surfing for advertising credits, you are particularly vulnerable to distraction, as you may spend a large part of your day being bombarded by advertising. Once you are drawn off into one tempting website, it can lead to others, then others and so on.
The same can be true of your email inbox. You may be signed up to various newsletters and ezines, you may be spammed, you may belong to safelists that require you to receive the owner’s emails. All or some may cause a distraction from your day’s business activity. You may reach the end of the day and suddenly realize: “Hey, I’ve achieved nothing today.” That can be a demoralizing feeling.
Offline there are many distractions too: you may have children around, your partner may want your company, you may want to laze in the garden as the sun’s come out for the first time in days. There are endless possibilities, depending on your own circumstances, interests and weaknesses. You need to be very much aware of what your own distractions are, and then manage them according to your business, domestic and personal priorities.
How Do You Manage Your Time?
However you manage your time, the first part of the process should be to:
• Decide what the essential elements are for developing and growing your business, steadily and profitably.
• Consider your domestic and personal situation. Now you have your own home business, you have a chance to build into your daily routine activities that will enhance your own happiness and that of your family. This is a great opportunity. Make the most of it.
• Take some quiet time and reflect on the first two items. Let them meld together in your mind and visualize how they can be brought together to make your perfect day/s.
Whatever the outcome of the above three steps, the result is not set in stone. You can change and adapt according to experience, but for now use this as an exercise in getting into a time management frame of mind.
Now that you know what you need to focus on, start to put a bit of pressure on yourself. Not major pressure; that would be counter productive. Start to structure your future, whether one day, one month or one year. Set yourself achievable targets each day, week and month; a list of tasks that you need to do to help your business and you to grow. I use a good old fashioned diary, just to get my eyes away from the screen a while, at the beginning and end of the day, and at intervals as each task is completed. Here are a few tips that I try to stick to:
• Set out a series of tasks to do each day. Make sure they are achievable.
• If you have any regular daily, weekly or monthly tasks (you should have), build them into your diary in advance so they do not get forgotten. For example, I do a daily Blog. That’s there in my diary every day of the week. You will need time set aside to consider finances. Put it in your diary in advance.
• If you have a long task to do, split it over a few days, rather than spend a whole day on the same thing. If it can be split into sub-tasks, all the better. For example, if you’re building a website, you may be able to split it into content headings or pages. Give yourself an achievable amount to do each day, allowing time for other things.
• Try to include one task per day that involves you increasing your knowledge and expertise. For example, if you have a new instructive ebook to read, set aside some time each day for it until finished. When finished, note in your diary to check on your implementation of suggestions you want to adopt. The same goes for new software and other new technology. A steady build up of knowledge can be planned for just by putting these things in your diary and sticking to the plan. Trying to master something new all in one go may cause unnecessary frustration and weariness.
• If you really must surf for advertising credits, do that as your last set task of the day, otherwise you may not achieve as much as you would have.
• If there’s something you can do away from the computer screen, try to plan for it. For example, if you need to plan website content or write an article, you will benefit from at least thinking of the main points by relaxing. If it’s warm, sit in the garden, somewhere to give you a break from the computer.
• If you think you will benefit from so doing, use the same diary to schedule in domestic activities too. Don’t forget, this is your home business. The home and your family are part of it. If you want to take the children to the beach after school, schedule it in. You can do that and still achieve something for your business that day.
• If you find that a task cannot be completed, or its priority should be lessened, don’t try to force yourself to do it the day first scheduled. Reschedule it for another day.
Time management is a very personal thing, especially when you have your own business at home. I am sure you can adopt your own techniques that suit you best. The most important thing to remember, though, is that time needs to be managed. If you’re alone in the business, time is a major limiting factor. It is important you make the most of your time, and for your own moraleArticle Submission, to end each working day feeling you’ve achieved something.
http://www.articlesfactory.com/articles/business/managing-your-home-based-online-business-5.html
To anybody working in an office or factory, time management may well be something they hope to escape from by having their own business. A highly pressured executive may well feel the same. They could work at home, where they’re the boss, and they decide what to do and when. They could watch tv when they want, sit up in bed with their laptops, or without, and numerous other symbols of freedom from being an employee.
Of course, these things are all possible when you work from home. Of all types of home business, though, working online is probably the most difficult to manage from a time point of view. Perhaps difficult is the wrong word. It’s actually easy. What is difficult is the high level of potential online distraction and having to resist it. Add the online distractions to those around you at home, and you have the ingredients for an awful lot of wasted time.
What Are All These Distractions?
There are many potential distractions online. Millions of them when you consider there are millions of websites, and millions of advertisements advertising those websites in often exaggerated, but tempting, ways. If you are trying to get traffic to your own website by surfing for advertising credits, you are particularly vulnerable to distraction, as you may spend a large part of your day being bombarded by advertising. Once you are drawn off into one tempting website, it can lead to others, then others and so on.
The same can be true of your email inbox. You may be signed up to various newsletters and ezines, you may be spammed, you may belong to safelists that require you to receive the owner’s emails. All or some may cause a distraction from your day’s business activity. You may reach the end of the day and suddenly realize: “Hey, I’ve achieved nothing today.” That can be a demoralizing feeling.
Offline there are many distractions too: you may have children around, your partner may want your company, you may want to laze in the garden as the sun’s come out for the first time in days. There are endless possibilities, depending on your own circumstances, interests and weaknesses. You need to be very much aware of what your own distractions are, and then manage them according to your business, domestic and personal priorities.
How Do You Manage Your Time?
However you manage your time, the first part of the process should be to:
• Decide what the essential elements are for developing and growing your business, steadily and profitably.
• Consider your domestic and personal situation. Now you have your own home business, you have a chance to build into your daily routine activities that will enhance your own happiness and that of your family. This is a great opportunity. Make the most of it.
• Take some quiet time and reflect on the first two items. Let them meld together in your mind and visualize how they can be brought together to make your perfect day/s.
Whatever the outcome of the above three steps, the result is not set in stone. You can change and adapt according to experience, but for now use this as an exercise in getting into a time management frame of mind.
Now that you know what you need to focus on, start to put a bit of pressure on yourself. Not major pressure; that would be counter productive. Start to structure your future, whether one day, one month or one year. Set yourself achievable targets each day, week and month; a list of tasks that you need to do to help your business and you to grow. I use a good old fashioned diary, just to get my eyes away from the screen a while, at the beginning and end of the day, and at intervals as each task is completed. Here are a few tips that I try to stick to:
• Set out a series of tasks to do each day. Make sure they are achievable.
• If you have any regular daily, weekly or monthly tasks (you should have), build them into your diary in advance so they do not get forgotten. For example, I do a daily Blog. That’s there in my diary every day of the week. You will need time set aside to consider finances. Put it in your diary in advance.
• If you have a long task to do, split it over a few days, rather than spend a whole day on the same thing. If it can be split into sub-tasks, all the better. For example, if you’re building a website, you may be able to split it into content headings or pages. Give yourself an achievable amount to do each day, allowing time for other things.
• Try to include one task per day that involves you increasing your knowledge and expertise. For example, if you have a new instructive ebook to read, set aside some time each day for it until finished. When finished, note in your diary to check on your implementation of suggestions you want to adopt. The same goes for new software and other new technology. A steady build up of knowledge can be planned for just by putting these things in your diary and sticking to the plan. Trying to master something new all in one go may cause unnecessary frustration and weariness.
• If you really must surf for advertising credits, do that as your last set task of the day, otherwise you may not achieve as much as you would have.
• If there’s something you can do away from the computer screen, try to plan for it. For example, if you need to plan website content or write an article, you will benefit from at least thinking of the main points by relaxing. If it’s warm, sit in the garden, somewhere to give you a break from the computer.
• If you think you will benefit from so doing, use the same diary to schedule in domestic activities too. Don’t forget, this is your home business. The home and your family are part of it. If you want to take the children to the beach after school, schedule it in. You can do that and still achieve something for your business that day.
• If you find that a task cannot be completed, or its priority should be lessened, don’t try to force yourself to do it the day first scheduled. Reschedule it for another day.
Time management is a very personal thing, especially when you have your own business at home. I am sure you can adopt your own techniques that suit you best. The most important thing to remember, though, is that time needs to be managed. If you’re alone in the business, time is a major limiting factor. It is important you make the most of your time, and for your own moraleArticle Submission, to end each working day feeling you’ve achieved something.
http://www.articlesfactory.com/articles/business/managing-your-home-based-online-business-5.html
The Key to Home Buying Satisfaction May Have Less to Do With the Property Than You Think
Three bedrooms versus five, one bathroom versus two - will these things TRULY make you happy when you buy a new home? Not as much as choosing a home to suit your lifestyle will. This article rings to light one of the less discussed, but most important factors in finding the right home for you and your family.
People make their real estate buying decisions based on dozens of factors, and a lot of them are fairly straightforward qualities about the property that help narrow down the choices.
For one buyer, three bedrooms may be enough, four is fine, but five rules a house out. For another, the amount of land determines the acceptable area to enjoy and the desired distance from neighboring houses. For still others, the tax rate in one city or town versus another can hold some serious sway on the final purchase.
But what about a desired lifestyle? Some people consider things that factor into lifestyle – urban vs. suburban vs. rural, for example – but don't consciously consider lifestyle as a deciding factor for selecting a home. And these people might be more satisfied with their home buying decision if they did.
Selecting real estate to fit a lifestyle is a good option, because it'll help you fit in the community, and ensure you feel at home once you get moved in.
It's about finding a community that meets your needs. Of course, there are plenty of different lifestyles, and plenty of communities to suit those lifestyles. So, what's the simplest advice?
Look for a community that you feel comfortable in. It could be one where the neighbors are similar to you and have similar habits and a similar lifestyle. Or if you value diversity within your environment, you'll find comfort in variety.
You can tell a lot about a community just by driving through it. Check out the local shops and stores to give you an idea of the atmosphere. Check out local parks and drive through different neighborhoods. Then get out of the car and start walking around and talking to people. You're bound to meet friendly, open folks who can tell you what it's like to live in the community.
By selecting real estate to fit your lifestyle, you help increase the chances you'll like the home you move into. You'll find it easier to make friends and fit in. You'll have more things to do that you enjoy, the right mix of necessities at hand and room to retreat to.
The truth is, selecting real estate to fit a lifestyle isn't anything new. It may be something you're already doing without even thinking about it. Considering what a huge and life-influencing decision the home-buying process isHealth Fitness Articles, it's worth it to put some outright conscious effort into lifestyle considerations. It may make the difference between simple satisfaction and unfortunate toleration.
ABOUT THE AUTHOR
Alpine Lakes Real Estate has been building long-term relationships in the White Mountains region for more than 20 years. Their extensive real estate expertise is enhanced by their vast knowledge of the entire building process. With offices in Lincoln and Campton, NH, they also offer assistance with IRS 1031 "like-kind" exchanges, and the Design-Build services of their in-house architect. For more information, go to http://www.AlpineLakes.com.
People make their real estate buying decisions based on dozens of factors, and a lot of them are fairly straightforward qualities about the property that help narrow down the choices.
For one buyer, three bedrooms may be enough, four is fine, but five rules a house out. For another, the amount of land determines the acceptable area to enjoy and the desired distance from neighboring houses. For still others, the tax rate in one city or town versus another can hold some serious sway on the final purchase.
But what about a desired lifestyle? Some people consider things that factor into lifestyle – urban vs. suburban vs. rural, for example – but don't consciously consider lifestyle as a deciding factor for selecting a home. And these people might be more satisfied with their home buying decision if they did.
Selecting real estate to fit a lifestyle is a good option, because it'll help you fit in the community, and ensure you feel at home once you get moved in.
It's about finding a community that meets your needs. Of course, there are plenty of different lifestyles, and plenty of communities to suit those lifestyles. So, what's the simplest advice?
Look for a community that you feel comfortable in. It could be one where the neighbors are similar to you and have similar habits and a similar lifestyle. Or if you value diversity within your environment, you'll find comfort in variety.
You can tell a lot about a community just by driving through it. Check out the local shops and stores to give you an idea of the atmosphere. Check out local parks and drive through different neighborhoods. Then get out of the car and start walking around and talking to people. You're bound to meet friendly, open folks who can tell you what it's like to live in the community.
By selecting real estate to fit your lifestyle, you help increase the chances you'll like the home you move into. You'll find it easier to make friends and fit in. You'll have more things to do that you enjoy, the right mix of necessities at hand and room to retreat to.
The truth is, selecting real estate to fit a lifestyle isn't anything new. It may be something you're already doing without even thinking about it. Considering what a huge and life-influencing decision the home-buying process isHealth Fitness Articles, it's worth it to put some outright conscious effort into lifestyle considerations. It may make the difference between simple satisfaction and unfortunate toleration.
ABOUT THE AUTHOR
Alpine Lakes Real Estate has been building long-term relationships in the White Mountains region for more than 20 years. Their extensive real estate expertise is enhanced by their vast knowledge of the entire building process. With offices in Lincoln and Campton, NH, they also offer assistance with IRS 1031 "like-kind" exchanges, and the Design-Build services of their in-house architect. For more information, go to http://www.AlpineLakes.com.
Home Loans
Buying a home remains the great American dream. Home ownership rates have been exploding in recent years, spurred on by the historically low interest rates in the home mortgage market.
Home prices have been rising at far faster than inflation, especially in major urban areas such as San Francisco, San Diego and Chicago. This means that not only can that home you’ve always wanted put a roof over your head, but it can provide you with a great investment as well. For people new to the mortgage market, buying their first home starts with finding the best home loans.
All potential homeowners should take some time to research home loans before calling their local realtor. There are a dazzling array of choices available when it comes to home loans, and finding the right mortgage for your needs can be difficult. Approach your upcoming home purchase with the same seriousness you apply to other major purchases. Your home will most likely be the biggest single investment you ever make. Take the time at the beginning to educate yourself about home loans. It will be time well spent.
Home loans are available from a wide variety of sources. These sources include banks, savings and loan associations, credit unions and mortgage brokers. Shop around at all of these sources to find the home loans with the lowest interest rate and lowest costs.
You will also have to decide between fixed rate home loans and variable rate home loans. Variable rate home loans are often advertised with extremely low “teaser rates”. These rates are used by lenders to get your attention and lure you in.
Before signing up for a variable rate mortgage, make sure you find out what the interest rate cap is. Variable rate home loans are usually based on an underlying interest rate, like the prime rate. The interest rate you pay will typically be the prime rate plus or minus a certain percentage. The variable rate mortgage will have a cap above which the interest rate cannot rise. Find out what that cap is, then use a mortgage payment calculator to see what your monthly mortgage payment will be at that rate. If you cannot afford the monthly payments at the maximum interest rate, you may not want to take the mortgage loan. While it is unlikely that interest rates will rise sufficiently to make the maximum interest rate kick in, it is always a possibility.
Variable rate home loans can be a good choice if you believe interest rates are likely to fall. In an environment where interest rates are steady or rising, they may not be so good a choice. You may also want to consider a variable rate mortgage if you do not plan to stay in your home more than five years. For instance, if your job transfers you every couple of years, you could probably get away with a variable rate mortgage and take advantage of the lower interest rate. When you move and sell your home, you will probably realize a gain due to rising home prices.
On the other hand, fixed rate home loans have a set interest rate for a set period of time, generally either 15 or 30 years. The interest rate does not change, therefore you will always know what your monthly mortgage payment will be. You are protected from rising interest rates with a fixed rate mortgage. If rates fall significantly, you can always refinance your mortgage loan to take advantage of the lower rates.
If you can afford the payments, 15-year home loans can substantially lower the amount of money you will ultimately pay for your home. When you run the numbers on a 15-year versus a 30-year home mortgage loan, you may be surprised at how affordable the 15-year home loan can be. Your mortgage payment will not double if you go with a 15-year mortgage versus a 30-year. This has to do with the affect of compound interest. You are paying far less interest in the long run on a 15-year mortgage.
Whatever type of home loan you decide on, the most important thing is to take that step which transforms you from a mere renter to a home owner and builder of equity. There are a great many home loans out there, but once you find the right oneComputer Technology Articles, you will find the rewards of home ownership well worth the time and effort put forth.
http://www.articlesfactory.com/articles/finance/home-loans.html
Home prices have been rising at far faster than inflation, especially in major urban areas such as San Francisco, San Diego and Chicago. This means that not only can that home you’ve always wanted put a roof over your head, but it can provide you with a great investment as well. For people new to the mortgage market, buying their first home starts with finding the best home loans.
All potential homeowners should take some time to research home loans before calling their local realtor. There are a dazzling array of choices available when it comes to home loans, and finding the right mortgage for your needs can be difficult. Approach your upcoming home purchase with the same seriousness you apply to other major purchases. Your home will most likely be the biggest single investment you ever make. Take the time at the beginning to educate yourself about home loans. It will be time well spent.
Home loans are available from a wide variety of sources. These sources include banks, savings and loan associations, credit unions and mortgage brokers. Shop around at all of these sources to find the home loans with the lowest interest rate and lowest costs.
You will also have to decide between fixed rate home loans and variable rate home loans. Variable rate home loans are often advertised with extremely low “teaser rates”. These rates are used by lenders to get your attention and lure you in.
Before signing up for a variable rate mortgage, make sure you find out what the interest rate cap is. Variable rate home loans are usually based on an underlying interest rate, like the prime rate. The interest rate you pay will typically be the prime rate plus or minus a certain percentage. The variable rate mortgage will have a cap above which the interest rate cannot rise. Find out what that cap is, then use a mortgage payment calculator to see what your monthly mortgage payment will be at that rate. If you cannot afford the monthly payments at the maximum interest rate, you may not want to take the mortgage loan. While it is unlikely that interest rates will rise sufficiently to make the maximum interest rate kick in, it is always a possibility.
Variable rate home loans can be a good choice if you believe interest rates are likely to fall. In an environment where interest rates are steady or rising, they may not be so good a choice. You may also want to consider a variable rate mortgage if you do not plan to stay in your home more than five years. For instance, if your job transfers you every couple of years, you could probably get away with a variable rate mortgage and take advantage of the lower interest rate. When you move and sell your home, you will probably realize a gain due to rising home prices.
On the other hand, fixed rate home loans have a set interest rate for a set period of time, generally either 15 or 30 years. The interest rate does not change, therefore you will always know what your monthly mortgage payment will be. You are protected from rising interest rates with a fixed rate mortgage. If rates fall significantly, you can always refinance your mortgage loan to take advantage of the lower rates.
If you can afford the payments, 15-year home loans can substantially lower the amount of money you will ultimately pay for your home. When you run the numbers on a 15-year versus a 30-year home mortgage loan, you may be surprised at how affordable the 15-year home loan can be. Your mortgage payment will not double if you go with a 15-year mortgage versus a 30-year. This has to do with the affect of compound interest. You are paying far less interest in the long run on a 15-year mortgage.
Whatever type of home loan you decide on, the most important thing is to take that step which transforms you from a mere renter to a home owner and builder of equity. There are a great many home loans out there, but once you find the right oneComputer Technology Articles, you will find the rewards of home ownership well worth the time and effort put forth.
http://www.articlesfactory.com/articles/finance/home-loans.html
Guide to Buying a Home
Before you rush out to purchase a home, there a few tips that might help you get a great deal on the home of your dreams.
First, before anything else, it would be in your best interests to talk with a lending company and receive a pre-qualification letter. This letter will let you know exactly what your maximum mortgage amount can be.
Many times, the lending company will ask that you put up a “good faith” payment that will be put in an escrow account; this money shows the home seller that you are serious about purchasing their home.
Next, you should have a home inspector to go to the home that you wish to purchase. Even if the home seller and the real estate agent already has one for you to see, you should invest the money into getting a home inspector of your own. The inspector will note any problems that he sees with the home in the way of repairs and you should look over this very carefully before signing any contracts. You do not want any surprises like a bad foundation or a leaky roof.
Look for a location that fits your lifestyle, such as proximity to schools, the beach, work, or any other activities that you enjoy. You may wish to find a home close to the elementary school, near a shopping centre, or even away from all the noise of the big city. Visit the neighborhood at different times during the day and in the evening and night to see what goes on in the neighborhood before you purchase. Do not take anyone’s word on how quiet the neighborhood really is. You can also find out the crime statistics in the area to ensure you are seeking a home in a safe area.
You can talk with a realtor and learn what homes are going for in the same neighborhood with similar amenities to make sure the home you wish to buy is not overpriced or under priced. If the property is way under market value, you should try to learn why before signing any type of contract. If the property is overpricedFeature Articles, you can always try to negotiate with the seller to try to get them to lower the price to a more reasonable price.
http://www.articlesfactory.com/articles/finance/guide-to-buying-a-home.html
First, before anything else, it would be in your best interests to talk with a lending company and receive a pre-qualification letter. This letter will let you know exactly what your maximum mortgage amount can be.
Many times, the lending company will ask that you put up a “good faith” payment that will be put in an escrow account; this money shows the home seller that you are serious about purchasing their home.
Next, you should have a home inspector to go to the home that you wish to purchase. Even if the home seller and the real estate agent already has one for you to see, you should invest the money into getting a home inspector of your own. The inspector will note any problems that he sees with the home in the way of repairs and you should look over this very carefully before signing any contracts. You do not want any surprises like a bad foundation or a leaky roof.
Look for a location that fits your lifestyle, such as proximity to schools, the beach, work, or any other activities that you enjoy. You may wish to find a home close to the elementary school, near a shopping centre, or even away from all the noise of the big city. Visit the neighborhood at different times during the day and in the evening and night to see what goes on in the neighborhood before you purchase. Do not take anyone’s word on how quiet the neighborhood really is. You can also find out the crime statistics in the area to ensure you are seeking a home in a safe area.
You can talk with a realtor and learn what homes are going for in the same neighborhood with similar amenities to make sure the home you wish to buy is not overpriced or under priced. If the property is way under market value, you should try to learn why before signing any type of contract. If the property is overpricedFeature Articles, you can always try to negotiate with the seller to try to get them to lower the price to a more reasonable price.
http://www.articlesfactory.com/articles/finance/guide-to-buying-a-home.html
Save yourself from homebuying disasters.
Buying a house will most likely be the most important purchase you make in your life. The lenders and agents are counting on you to walk blindly into your home purchase. Make them work for you. Take the extra time, arm yourself with the knowledge of home buying and lending practices in order to make informed, sound judgments and decisions.
Whether you are a first time home buyer or a happy home owner who wants to refinance an existing home loan, there are some cardinal “dos” and “don’ts” to follow. For many, home ownership is the biggest investment in their lives and that could be the reason why some people act irrationally, as if they purposely want to sabotage the deal. Follow these simple rules and you will be sure to make your experience difficult and unpleasant, if not a complete disaster.
Don't get pre-approved or pre-qualified for a loan; lose your dream home to someone else.
Being pre-qualified shows some commitment on your part to both the mortgage broker and the seller. Being pre-approved is an even better step to take. The lender knows your financial standing and is able to present you with the loan deal. If you are neither pre-approved nor pre-qualified, a real estate agent representing the seller will not treat you seriously, and the property you want will most likely sell to someone else during the time you waste securing a home loan. Go ahead and procrastinate, you didn't want that house anyway.
Make verbal contracts only. Talk is not cheap.
Since they are not enforceable in most states, make sure that the details of the deal regarding who pays certain costs or necessary repairs are agreed on verbally, and only verbally. Similarly, when the lender tells you that your rate is locked in, don’t ask for written evidence. You might be in for a big surprise at the closing appointment, but who doesn't like surprises?
No need to be discriminating. Choose a lender by using only one criteria.
A favorite criteria of most people is to go with a bank that offers the lowest interest rate, without any consideration of the true cost of the loan. Even if you know how to calculate it, you'll probably choose the lowest rate loan. The chances are that the lowest rate bank is charging a lot more in fees and points than others, but who has time to shop around? Life is busy. Others, usually more cautious people, go with the bank where they have their checking account. After all, your bank loves you and would not wish any financial harm, right?
Pay more than you should. Choose the seller’s real estate agent to represent you.
It is truly the best option. Rather than asking friends or colleagues for referrals, picking up the yellow pages or searching online for your own agent, simply go with someone whose job it is to get the best deal for the seller. Who cares about conflict of interest. Be house poor.
No need for tedious professional home inspections.
After all, what could go wrong? Leaky roofs, plumbing problems, termites, asbestos; all a minor nuisance. If electrical problems happen to start a fire… well, that’s what smoke detectors are for.
Don't bother reading important contracts. Just sign all documents.
They are long, difficult to read and understand and are very time consuming. Rather than familiarize yourself with them ahead of time, just wait and sign everything at your closing appointment. Besides, what you've signed may open the door to a world of surprising homeowner adventures you could never have imagined. More surprises for you to enjoy!
Buying a house will most likely be the most important purchase you make in your life. Don't mess it up!
There are countless websites, magazines, books etc with which you can empower yourself in this daunting task. Don't let yourself be taken advantage of; learn all that there is when it comes to buying a home. If you want to fail, just follow the preceding steps. But, success at negotiating the best price and the best loan rates can be achieved by simply avoiding these foolish and costly mistakes. The lenders and agents are counting on you to walk blindly into your home purchase. For them, the bottom line is getting the commission. They are hoping for as quick a sale as possible, and they would like you to be a typical uninformed client who makes decisions with their hearts only and not their heads. Make the agents work for you. Take the extra time, arm yourself with the knowledge of home buying and lending practices in order to make informed, sound judgments and decisions. You've worked very hard to get to the point of buying a house, so be smart about it and don't mess up!
Find more about home loans, insuranceFree Reprint Articles, and money saving tips at: How Much?
http://www.howmuchanswers.com/
ABOUT THE AUTHOR
Simon Fox is a senior staff member with How Much? - Comparing financial products.
Whether you are a first time home buyer or a happy home owner who wants to refinance an existing home loan, there are some cardinal “dos” and “don’ts” to follow. For many, home ownership is the biggest investment in their lives and that could be the reason why some people act irrationally, as if they purposely want to sabotage the deal. Follow these simple rules and you will be sure to make your experience difficult and unpleasant, if not a complete disaster.
Don't get pre-approved or pre-qualified for a loan; lose your dream home to someone else.
Being pre-qualified shows some commitment on your part to both the mortgage broker and the seller. Being pre-approved is an even better step to take. The lender knows your financial standing and is able to present you with the loan deal. If you are neither pre-approved nor pre-qualified, a real estate agent representing the seller will not treat you seriously, and the property you want will most likely sell to someone else during the time you waste securing a home loan. Go ahead and procrastinate, you didn't want that house anyway.
Make verbal contracts only. Talk is not cheap.
Since they are not enforceable in most states, make sure that the details of the deal regarding who pays certain costs or necessary repairs are agreed on verbally, and only verbally. Similarly, when the lender tells you that your rate is locked in, don’t ask for written evidence. You might be in for a big surprise at the closing appointment, but who doesn't like surprises?
No need to be discriminating. Choose a lender by using only one criteria.
A favorite criteria of most people is to go with a bank that offers the lowest interest rate, without any consideration of the true cost of the loan. Even if you know how to calculate it, you'll probably choose the lowest rate loan. The chances are that the lowest rate bank is charging a lot more in fees and points than others, but who has time to shop around? Life is busy. Others, usually more cautious people, go with the bank where they have their checking account. After all, your bank loves you and would not wish any financial harm, right?
Pay more than you should. Choose the seller’s real estate agent to represent you.
It is truly the best option. Rather than asking friends or colleagues for referrals, picking up the yellow pages or searching online for your own agent, simply go with someone whose job it is to get the best deal for the seller. Who cares about conflict of interest. Be house poor.
No need for tedious professional home inspections.
After all, what could go wrong? Leaky roofs, plumbing problems, termites, asbestos; all a minor nuisance. If electrical problems happen to start a fire… well, that’s what smoke detectors are for.
Don't bother reading important contracts. Just sign all documents.
They are long, difficult to read and understand and are very time consuming. Rather than familiarize yourself with them ahead of time, just wait and sign everything at your closing appointment. Besides, what you've signed may open the door to a world of surprising homeowner adventures you could never have imagined. More surprises for you to enjoy!
Buying a house will most likely be the most important purchase you make in your life. Don't mess it up!
There are countless websites, magazines, books etc with which you can empower yourself in this daunting task. Don't let yourself be taken advantage of; learn all that there is when it comes to buying a home. If you want to fail, just follow the preceding steps. But, success at negotiating the best price and the best loan rates can be achieved by simply avoiding these foolish and costly mistakes. The lenders and agents are counting on you to walk blindly into your home purchase. For them, the bottom line is getting the commission. They are hoping for as quick a sale as possible, and they would like you to be a typical uninformed client who makes decisions with their hearts only and not their heads. Make the agents work for you. Take the extra time, arm yourself with the knowledge of home buying and lending practices in order to make informed, sound judgments and decisions. You've worked very hard to get to the point of buying a house, so be smart about it and don't mess up!
Find more about home loans, insuranceFree Reprint Articles, and money saving tips at: How Much?
http://www.howmuchanswers.com/
ABOUT THE AUTHOR
Simon Fox is a senior staff member with How Much? - Comparing financial products.
Home Protection: Protecting Your Castle
In this articles you will find tips on how to protect your Family,Home,property.
Information on home protection products that makes your home a lot safer.
Tips on walking around the outside of your home, and looking carefully with “thief eyes” you should be able to identify any exploitable areas.
Your home is your castle. It contains your most valuable possessions, not the least of which is your family. It is an unfortunate reality that criminals will exploit any gaps in your home protection system in order to invade your private domain. This can result in the loss of cash, jewelry, electronics and your sense of security. Or, even worse, it can result in the loss of a life; yours or a loved one’s. Citizens are understandably becoming more and more aware of the dangers that face them, and are looking for solutions.
Home owners need complete security plans that will protect their residence and everything in it, both while they are at home and while they are away. Home protection is a top priority. The first step in home protection is to complete a comprehensive evaluation of your home’s “weak zones’. These are the aspects of your home that leave it open to attacks. By walking around the outside of your home, and looking carefully with “thief eyes” you should be able to identify any exploitable areas. For example, windows provide an easy avenue to enter your home, especially when they are on ground level. You may also notice ways in which higher windows can be accessed either via trees or other buildings on your property. After completing a survey of your property, it’s time to obtain the self defense and home protection tools that will keep you, your family, and your cherished belongings safe.
Here are some easily overlooked weak points that most homes offer to criminals, and the effective tools that will deter them. Many of us believe that the lock on our door will be enough to keep a burglar out; if we feel that we need extra security we simply add more locks. What we do not consider is how easy conventional locks are to pick. By adding more you may slow the burglar down a bit, but not enough to deter them. The solution is to install an unpickable lock. Advancements in technology have essentially made keys obsolete; it’s time for you to get up to date with a fingerprint door lock.
These locks will only allow you and your family to unlock the doors which means no keys to lose and no locks to pick. Within your home you likely keep valuable such as jewelry, cash, and important documents. Protect your assets by keeping them safely secured in a safe. There are several models of safes on the market. The most advanced systems combine sturdy construction with fingerprint recognition access. When searching for a merchant that carries home protection equipment it is important that you seek one who is reputable and knowledgeable. A great place to look is at http://bljsselfdefense.com/home_protection.html. This company offers a wide variety of items, includingfingerprint locks and safes, and provides consumers with education on self defense. In addition to the online resourcesHealth Fitness Articles, BLJ's Enterprises supplies its customers with personal attention to help ensure that they develop a home protection strategy that is right for them.
http://www.articlesfactory.com/articles/family/home-protection-protecting-your-castle.html
Information on home protection products that makes your home a lot safer.
Tips on walking around the outside of your home, and looking carefully with “thief eyes” you should be able to identify any exploitable areas.
Your home is your castle. It contains your most valuable possessions, not the least of which is your family. It is an unfortunate reality that criminals will exploit any gaps in your home protection system in order to invade your private domain. This can result in the loss of cash, jewelry, electronics and your sense of security. Or, even worse, it can result in the loss of a life; yours or a loved one’s. Citizens are understandably becoming more and more aware of the dangers that face them, and are looking for solutions.
Home owners need complete security plans that will protect their residence and everything in it, both while they are at home and while they are away. Home protection is a top priority. The first step in home protection is to complete a comprehensive evaluation of your home’s “weak zones’. These are the aspects of your home that leave it open to attacks. By walking around the outside of your home, and looking carefully with “thief eyes” you should be able to identify any exploitable areas. For example, windows provide an easy avenue to enter your home, especially when they are on ground level. You may also notice ways in which higher windows can be accessed either via trees or other buildings on your property. After completing a survey of your property, it’s time to obtain the self defense and home protection tools that will keep you, your family, and your cherished belongings safe.
Here are some easily overlooked weak points that most homes offer to criminals, and the effective tools that will deter them. Many of us believe that the lock on our door will be enough to keep a burglar out; if we feel that we need extra security we simply add more locks. What we do not consider is how easy conventional locks are to pick. By adding more you may slow the burglar down a bit, but not enough to deter them. The solution is to install an unpickable lock. Advancements in technology have essentially made keys obsolete; it’s time for you to get up to date with a fingerprint door lock.
These locks will only allow you and your family to unlock the doors which means no keys to lose and no locks to pick. Within your home you likely keep valuable such as jewelry, cash, and important documents. Protect your assets by keeping them safely secured in a safe. There are several models of safes on the market. The most advanced systems combine sturdy construction with fingerprint recognition access. When searching for a merchant that carries home protection equipment it is important that you seek one who is reputable and knowledgeable. A great place to look is at http://bljsselfdefense.com/home_protection.html. This company offers a wide variety of items, includingfingerprint locks and safes, and provides consumers with education on self defense. In addition to the online resourcesHealth Fitness Articles, BLJ's Enterprises supplies its customers with personal attention to help ensure that they develop a home protection strategy that is right for them.
http://www.articlesfactory.com/articles/family/home-protection-protecting-your-castle.html
Buying Your First Home - Watch Out!
If you are buying your first home, watch out! There are people who will help you get into all sorts of trouble.
If you are buying your first home, there are people who will help you get into all types of trouble. Well, mostly it is one type of trouble: financial. Here are some examples.
Watch Out For Real Estate Agents
You might think that real estate agents would love first-time home buyers, since they can influence them and make a sale more easily. In reality, though, many people are very hesitant to make a decision when they buy their first home. It will be the single biggest purchase they have made in their lives, after all, so they want to take their time and see a lot of houses. Meanwhile, the agent just wants a sale.
Don't be pushed to make a fast decision. It may be true that a particular house is "not going to last long," or it may just be something an agent says. Either way, their are other homes, and you need time to get a feel for what is available and at what prices. This education is crucial, and comes primarily from looking at a lot of homes.
The agent is not necessarily looking out for your best interest, by the way. Unless you hired him to represent you, he works for the seller and is even obligated to pass on any relevant comments you make, like "we can go higher on the offer if necessary." Keep quiet, and remember that the agent is a sales person, whose primary concern is to sell something.
Watch Out For Mortgage Lenders
When you are buying you first home, you are also buying your first mortgage loan. Lenders will be so helpful. For example, they will help you afford a loan that is too large by offering you a variable-rate loan with a low teaser rate. Of course they won't help the hundreds of thousands of families that are now facing foreclosure because those payments went up when the teaser rate period was over.
Variable rate, interest only, and even reverse-amortization loans (where you owe more each year) have all been "helpfully" pushed on first-time buyers who are trying to buy more than they can afford. You are told that buying a home is the best thing you can do. Sometimes this is true, but it never is if you can't hold onto that home. If you really can't afford a home, a smaller home with a smaller mortgage loan is better - and if you can't afford that, renting is actually the best thing you can do.
Look at the worst-case scenario when considering a loan. For example, if you are considering a variable rate loan, ask what the payment will be if interest rates go up 5% years later. Will you be able to comfortably afford that? The banker may helpfully point out that the rate is capped at a 2% rise per year, but that just means the day of reckoning is postponed a little. In three years you could be paying almost $6,000 more per year on that $200,000 loan.
Watch Out For Family And Friends
The best intentions of friends and family can get you into trouble. When you are buying your first home you will get advice. Sometimes it will be good advice. Other times it will be a friend trying to get you to move to his neighborhood - the one you can't afford. Family too can push you to buy before you are ready, or spend too much. They don't always know what is best for you, so do your own thinking, buy what YOU needFree Articles, and buy a home you can afford.
ABOUT THE AUTHOR
Copyright Steve Gillman. For a Free Real Estate Investing Course, visit: http://www.housesunderfiftythousand.com/
If you are buying your first home, there are people who will help you get into all types of trouble. Well, mostly it is one type of trouble: financial. Here are some examples.
Watch Out For Real Estate Agents
You might think that real estate agents would love first-time home buyers, since they can influence them and make a sale more easily. In reality, though, many people are very hesitant to make a decision when they buy their first home. It will be the single biggest purchase they have made in their lives, after all, so they want to take their time and see a lot of houses. Meanwhile, the agent just wants a sale.
Don't be pushed to make a fast decision. It may be true that a particular house is "not going to last long," or it may just be something an agent says. Either way, their are other homes, and you need time to get a feel for what is available and at what prices. This education is crucial, and comes primarily from looking at a lot of homes.
The agent is not necessarily looking out for your best interest, by the way. Unless you hired him to represent you, he works for the seller and is even obligated to pass on any relevant comments you make, like "we can go higher on the offer if necessary." Keep quiet, and remember that the agent is a sales person, whose primary concern is to sell something.
Watch Out For Mortgage Lenders
When you are buying you first home, you are also buying your first mortgage loan. Lenders will be so helpful. For example, they will help you afford a loan that is too large by offering you a variable-rate loan with a low teaser rate. Of course they won't help the hundreds of thousands of families that are now facing foreclosure because those payments went up when the teaser rate period was over.
Variable rate, interest only, and even reverse-amortization loans (where you owe more each year) have all been "helpfully" pushed on first-time buyers who are trying to buy more than they can afford. You are told that buying a home is the best thing you can do. Sometimes this is true, but it never is if you can't hold onto that home. If you really can't afford a home, a smaller home with a smaller mortgage loan is better - and if you can't afford that, renting is actually the best thing you can do.
Look at the worst-case scenario when considering a loan. For example, if you are considering a variable rate loan, ask what the payment will be if interest rates go up 5% years later. Will you be able to comfortably afford that? The banker may helpfully point out that the rate is capped at a 2% rise per year, but that just means the day of reckoning is postponed a little. In three years you could be paying almost $6,000 more per year on that $200,000 loan.
Watch Out For Family And Friends
The best intentions of friends and family can get you into trouble. When you are buying your first home you will get advice. Sometimes it will be good advice. Other times it will be a friend trying to get you to move to his neighborhood - the one you can't afford. Family too can push you to buy before you are ready, or spend too much. They don't always know what is best for you, so do your own thinking, buy what YOU needFree Articles, and buy a home you can afford.
ABOUT THE AUTHOR
Copyright Steve Gillman. For a Free Real Estate Investing Course, visit: http://www.housesunderfiftythousand.com/
Home Buying Grants - The Secrets Of Successful Applications!
Home buying grants are waiting... for those select few who know how to get them. This article provides any new grant seeker with solid foundations for securing the free grant money available for housing grants.
Owning a home in America today, instead of becoming a luxury it can actually become a reality, with the help of the home buying grants. If you are interested in saying “stop” to your monthly rent, then they might be the perfect solution for you. A grant is an excellent possibility that saves you a lot of stress and troubles. It can be the optimum solution for you, in case you do not have great sums of money at your disposal, to use and to invest as you please.
The first thing you are going to face when you want to apply for one of the home buying grants is the wide range of eligibility criteria. For sure, your financial status matters, as well as your occupation, family members, location and so on. But as long as you are informed well enough and as long as you opt for the programs that suit you best, you have all the chances to get the desired aid. The fact is that in the US today, you can find various lending programs that offer very low rates – and who doesn’t want that? So, in order to get the best offers, you should start your search with the help of the Internet. You can find various directories of home buying grants, offered by numerous organizations and banks. But when you do your search, make sure that you are only considering the ones that promote a serious and reputable image.
In addition to the above, you should know that the process implied by the home buying grants might take a lot of your time. In addition, you might need to wait for some months or even a year in order to obtain the money. Actually, this might be considered one of the main flaws of the home buying grants process. Still, as long as you keep contact with the provider, as long as you provide the requested information in time and as long as you collaborate optimally, thus offering all the details that are needed, you have all the chances to wait less and to get your grant sooner.
The home buying grants sound like an ideal solutions for all those who can not pay cash when purchasing a home. And that is why they appeal to so many people. Even more, the popularity of the home buying grants has increased in the past years, as a result of the real estate boom. Individuals are actually aware of the fact that we are dealing with a business opportunity here, and not just with a simple necessity. Nowadays, people are interested in buying more than one residence, since the real estate business has become the safest and the most profitable of all. And when you think about it, you can actually gain profit with the help of these home buying grants.
More and more individuals are interested in applying for home buying grants, this is a current fact. And if we think about it, these programs come with many advantages. Besides saving us the troubles of dealing with monthly rent, they can offer security, thus providing us the necessary funds for purchasing a house. And we all know that owning a home is an essential factor of our feeling of safety and well being. Considering all these factsArticle Search, it is no wonder that the popularity of the home buying grants is constantly increasing.
http://www.articlesfactory.com/articles/finance/home-buying-grants-the-secrets-of-successful-applications.html
Owning a home in America today, instead of becoming a luxury it can actually become a reality, with the help of the home buying grants. If you are interested in saying “stop” to your monthly rent, then they might be the perfect solution for you. A grant is an excellent possibility that saves you a lot of stress and troubles. It can be the optimum solution for you, in case you do not have great sums of money at your disposal, to use and to invest as you please.
The first thing you are going to face when you want to apply for one of the home buying grants is the wide range of eligibility criteria. For sure, your financial status matters, as well as your occupation, family members, location and so on. But as long as you are informed well enough and as long as you opt for the programs that suit you best, you have all the chances to get the desired aid. The fact is that in the US today, you can find various lending programs that offer very low rates – and who doesn’t want that? So, in order to get the best offers, you should start your search with the help of the Internet. You can find various directories of home buying grants, offered by numerous organizations and banks. But when you do your search, make sure that you are only considering the ones that promote a serious and reputable image.
In addition to the above, you should know that the process implied by the home buying grants might take a lot of your time. In addition, you might need to wait for some months or even a year in order to obtain the money. Actually, this might be considered one of the main flaws of the home buying grants process. Still, as long as you keep contact with the provider, as long as you provide the requested information in time and as long as you collaborate optimally, thus offering all the details that are needed, you have all the chances to wait less and to get your grant sooner.
The home buying grants sound like an ideal solutions for all those who can not pay cash when purchasing a home. And that is why they appeal to so many people. Even more, the popularity of the home buying grants has increased in the past years, as a result of the real estate boom. Individuals are actually aware of the fact that we are dealing with a business opportunity here, and not just with a simple necessity. Nowadays, people are interested in buying more than one residence, since the real estate business has become the safest and the most profitable of all. And when you think about it, you can actually gain profit with the help of these home buying grants.
More and more individuals are interested in applying for home buying grants, this is a current fact. And if we think about it, these programs come with many advantages. Besides saving us the troubles of dealing with monthly rent, they can offer security, thus providing us the necessary funds for purchasing a house. And we all know that owning a home is an essential factor of our feeling of safety and well being. Considering all these factsArticle Search, it is no wonder that the popularity of the home buying grants is constantly increasing.
http://www.articlesfactory.com/articles/finance/home-buying-grants-the-secrets-of-successful-applications.html
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