A generation ago, home equity loans were often made by shady characters to the financially distressed. Today, second mortgages are a legitimate financial tool that can be of benefit to homeowners. They come in all shapes and sizes to meet the needs of various homeowners. Let’s examine their characteristics -- their pros and cons.
Second mortgages are increasingly popular today. Let’s be honest. Almost all of the A-paper borrowers in the country got a really cheap loan in 2002 or 2003, like 4% or 5% loans. If they need money for some good purpose, they are not going to want to refinance at current rates. It’s better to get a second mortgage.
There are two main types of seconds. The first is the Home Equity Loan and the other is the popular Home Equity Line of Credit, aka the HELOC, or “equityline” loan.
The typical home equity loan is distinguished from its popular counterpart, the equityline loan, in that the loan is for a fixed amount and the payment schedule amortizes the loan over a pre-set period of time. For example, if you borrow $50,000 at 7 percent for 15 years, the payment will be $449.41 per month and the loan will be paid off slowly over 15 years. Most lenders also offer a “30 due in 15” where the balance is amortized over 30 years. It has a balloon at the end of 15 years if you haven’t paid it off by then – hence the emphasis “due in 15.”
What makes home equity loans enticing and perhaps the most suitable is when their purpose is to finance a specific project, like re-modeling. These loans are widely available and you can get up to 90 percent of your home’s current value. But they are pricier. If your home is worth $500,000, you can borrow up to $450,000, so if your current mortgage is $300,000, you can borrow another $150,000.
You can also borrow what you need with a home improvement loan, one taken out to finance improvements to the property, like adding a recreation room or swimming pool or modernizing the kitchen. Such improvements add value to a property, so the lender will do an appraisal based upon the value after the improvement is completed and grant a loan on that increased value. I should warn you that the paperwork required on this kind of loan can be horrendous, but if you can’t get the loan amount you need based upon the current value of the home, this may be a good solution.
The negative of a home equity loan is that, once in place, it cannot be increased should some other need arise in the future. Let’s say you have such a loan and another need arises that requires a chunk of money. You can go get another home equity loan -- unless you made the mistake of getting your first one with a prepayment penalty.
A positive is that the loan is guaranteed to disappear over a period of time. Also, you do not have the temptation of drawing on it for some fleeting purpose as you can with an equityline loan.
As with HELOCs, discussed next, the market for these loans is highly competitive and there are precious few differences between them. That means the benefits of being a shrewd shopper are fewer as there are just not enough different options to choose from. The first stop should be to the loan officer or broker who helped you buy your home. All of us have numerous sources for these loans. Local banks are okay too, and existing customers will receive favorable treatment. Credit unions usually charge lower fees but you have to be a member. Finally, there are many Internet sources.
WARNING: Avoid prepayment penalties that lenders love to slip in when you aren’t looking.
While the interest paid on a home equity loan is tax deductible, remember that it is of benefit only to the extent that all of your deductions exceed the standard deduction available to all taxpayers. Also, there are some limits on deductibility of interest on loans over $100,000. Consult your tax advisor to see how the rules apply to you.
WARNING: I would advise against getting one of the heavily advertised 125 percent loans where the lender will lend you more than the equity in your home. Technically, they are not equity loans but “equity-destroying” loans.
http://www.credit.com/credit_information/mortgages/Making-Sense-of-Home-Equity-Loans.jsp
Thursday, November 15, 2007
Home Equity: How to Build it, How to Use it
When homeowners purchase their first home, their equity is small. The only equity may be just the initial down payment, which is perhaps only 5% or 10% of the value. Or it maybe nothing, as is the case with people who bought with “no money down” in the recent days of profligate lending.
During the next 30 or so years, equity increases as a result of appreciation in property value and by slowly paying down the mortgage balance. A worthy goal for many people is to maximize their home equity by the time they retire. In fact, for many people, building equity in their home is a simple and relatively painless way to increase their net worth.
Indeed, for those who have modest retirement benefits, building substantial equity holds the key to a successful retirement. This series will focus on developing strategies to assure, first, that you maximize your equity in the manner most suitable for your situation, and second, to consider how you can use equity to further other purposes you may have.
Building Equity after Buying
Whatever equity you started out with, it is important to build it quickly. At the current date, mid-2007, we have come to the end of a period of spectacular increases in real estate values. Lots of homeowners were beneficiaries of this. Today, you can't count on that and equity may have to be built the old fashioned way -- by paying for it!
At some point in time you may want to sell your home and buy another one. It will be important to be able to take as much equity as you can with you to your new home. This isn't easy when you start out having to pay a 6% real estate commission. Don't assume that you can sell without a broker. You may get lucky, but maybe not!
If you bought your home with no money down, you have to scratch up 6% equity just to get out with no money. With normal amortization on a 30 year loan, the mortgage balance won't have been paid down to 94% of its original value until after 4 years have passed. For those who got the popular Interest-Only loans, they never will get there!
Bottom line: You need to manage your mortgage debt by paying it down so as to meet your objective. I know that all borrowers stretch in making mortgage payments, particularly on their first home, and here I am talking about increasing the monthly payment. But that's reality and you need to deal with it. If you get lucky, we'll see renewed appreciation and you'll get a little help.
There are many calculators on the Internet that can help you figure out a plan to meet your objectives. Try the ones at http://www.mtgprofessor.com/calculators.htm
Building Equity for Retirement
Your Sure Fire Happy Retirement Plan is to pay off your mortgage the month you retire. Your income will drop when you retire, but when you also eliminate the largest expense item in the budget, retirement can be a joy.
However, one of the funny things about time is how quickly it passes. All of a sudden, you're 60 years old and you “forgot” to make those extra principal payments you talked about and you still have a hefty mortgage balance. Owning your home free-and-clear, as the expression goes, sound pretty good. With a plan, you're likely to achieve your goal, so let's talk about goals and planning.
To achieve this goal, you must start years earlier. You've seen the examples that show the advantage of starting to contribute to your 401(k) in your twenties rather than later in your career. The mortgage payoff plan is no different. Ideally, the plan should be implemented when you are just entering your fifties, if not before.
Your income is close to its peak and your expenses are down after launching your kids. You're comfortable with your monthly mortgage payment but you now have more disposable income. That's the time to increase your payment to a level that will have the loan paid off at a specific time in the future. Let's work through an example.
Say you and your spouse are 47 years old and you want to have your mortgage paid off when you are 63 years old, 16 years into the future. Let's assume that you got a 6% $250,000 30-year loan seven years ago. The payment is $1,499 per month. The current balance is $224,088 but if you don't do something different, it wouldn't be paid off until you were 70. By increasing the payment to $1,818 per month, you can reduce the length of the loan to 16 years. In addition, because you've paid the loan down faster, you save a total $64,500 in interest over that 16 year period. All that went to paying down the principal faster.
Sometimes you can hasten this process by refinancing. In the next article in this series, we'll explore the costs and benefits of refinancing and discuss how you can decide if it makes sense for you.
http://www.credit.com/credit_information/mortgages/Home-Equity-How-to-Build-it-How-to-Use-it.jsp
During the next 30 or so years, equity increases as a result of appreciation in property value and by slowly paying down the mortgage balance. A worthy goal for many people is to maximize their home equity by the time they retire. In fact, for many people, building equity in their home is a simple and relatively painless way to increase their net worth.
Indeed, for those who have modest retirement benefits, building substantial equity holds the key to a successful retirement. This series will focus on developing strategies to assure, first, that you maximize your equity in the manner most suitable for your situation, and second, to consider how you can use equity to further other purposes you may have.
Building Equity after Buying
Whatever equity you started out with, it is important to build it quickly. At the current date, mid-2007, we have come to the end of a period of spectacular increases in real estate values. Lots of homeowners were beneficiaries of this. Today, you can't count on that and equity may have to be built the old fashioned way -- by paying for it!
At some point in time you may want to sell your home and buy another one. It will be important to be able to take as much equity as you can with you to your new home. This isn't easy when you start out having to pay a 6% real estate commission. Don't assume that you can sell without a broker. You may get lucky, but maybe not!
If you bought your home with no money down, you have to scratch up 6% equity just to get out with no money. With normal amortization on a 30 year loan, the mortgage balance won't have been paid down to 94% of its original value until after 4 years have passed. For those who got the popular Interest-Only loans, they never will get there!
Bottom line: You need to manage your mortgage debt by paying it down so as to meet your objective. I know that all borrowers stretch in making mortgage payments, particularly on their first home, and here I am talking about increasing the monthly payment. But that's reality and you need to deal with it. If you get lucky, we'll see renewed appreciation and you'll get a little help.
There are many calculators on the Internet that can help you figure out a plan to meet your objectives. Try the ones at http://www.mtgprofessor.com/calculators.htm
Building Equity for Retirement
Your Sure Fire Happy Retirement Plan is to pay off your mortgage the month you retire. Your income will drop when you retire, but when you also eliminate the largest expense item in the budget, retirement can be a joy.
However, one of the funny things about time is how quickly it passes. All of a sudden, you're 60 years old and you “forgot” to make those extra principal payments you talked about and you still have a hefty mortgage balance. Owning your home free-and-clear, as the expression goes, sound pretty good. With a plan, you're likely to achieve your goal, so let's talk about goals and planning.
To achieve this goal, you must start years earlier. You've seen the examples that show the advantage of starting to contribute to your 401(k) in your twenties rather than later in your career. The mortgage payoff plan is no different. Ideally, the plan should be implemented when you are just entering your fifties, if not before.
Your income is close to its peak and your expenses are down after launching your kids. You're comfortable with your monthly mortgage payment but you now have more disposable income. That's the time to increase your payment to a level that will have the loan paid off at a specific time in the future. Let's work through an example.
Say you and your spouse are 47 years old and you want to have your mortgage paid off when you are 63 years old, 16 years into the future. Let's assume that you got a 6% $250,000 30-year loan seven years ago. The payment is $1,499 per month. The current balance is $224,088 but if you don't do something different, it wouldn't be paid off until you were 70. By increasing the payment to $1,818 per month, you can reduce the length of the loan to 16 years. In addition, because you've paid the loan down faster, you save a total $64,500 in interest over that 16 year period. All that went to paying down the principal faster.
Sometimes you can hasten this process by refinancing. In the next article in this series, we'll explore the costs and benefits of refinancing and discuss how you can decide if it makes sense for you.
http://www.credit.com/credit_information/mortgages/Home-Equity-How-to-Build-it-How-to-Use-it.jsp
Home Buying Questions - Am I Ready to Buy?
For obvious reasons, this should be the first home buying question you ask yourself. After all, if you're not ready to buy a home, there's no point in asking all the other home buying questions.
This is a question that only the home buyer (or potential home buyer) can answer. Buying a home is one of the biggest financial decisions you will ever make, so you need to weigh the facts carefully and be honest with yourself.
Helpful Resources
Here are some resources to help you answer this all-important home buying question, "Am I ready to buy a home?"
* Are You Ready to Buy a Home?
* How Much Can You Afford?
* Buying vs. Renting Calculator
* The Buying vs. Renting Decision
http://www.homebuyinginstitute.com/homebuyingtips/labels/Home%20buying%20questions.html
This is a question that only the home buyer (or potential home buyer) can answer. Buying a home is one of the biggest financial decisions you will ever make, so you need to weigh the facts carefully and be honest with yourself.
Helpful Resources
Here are some resources to help you answer this all-important home buying question, "Am I ready to buy a home?"
* Are You Ready to Buy a Home?
* How Much Can You Afford?
* Buying vs. Renting Calculator
* The Buying vs. Renting Decision
http://www.homebuyinginstitute.com/homebuyingtips/labels/Home%20buying%20questions.html
Home Buying Questions - Choosing a Neighborhood
Continuing our series on home buying Q&A, we come to another frequently asked question among home buyers: "How do I choose a neighborhood?"
This is a great home buying question to ask, because it shows you're thinking the right way about real estate. When you buy a home, you are also buying into the neighborhood in which the home resides. You are also buying into the school system, property tax situation, and other factors that affect the value of your home.
There's also the more human aspects of choosing a neighborhood. Obviously, you want to choose a neighborhood that you'll enjoy coming home to every day ... a neighborhood where other home owners care about the appearance of their homes, and the appearance of the neighborhood as a whole.
In other words, you want to choose a neighborhood that complements your home, as opposed to detracting from it.
Here are some resources to help you choose the right neighborhood before buying a home.
* Neighborhood Scout
* Yahoo Neighborhood Reports
* Helpful article on-site (scroll down to "location, location, location")
* Choosing the right neighborhood (About.com)
http://www.homebuyinginstitute.com/homebuyingtips/labels/Home%20buying%20questions.html
This is a great home buying question to ask, because it shows you're thinking the right way about real estate. When you buy a home, you are also buying into the neighborhood in which the home resides. You are also buying into the school system, property tax situation, and other factors that affect the value of your home.
There's also the more human aspects of choosing a neighborhood. Obviously, you want to choose a neighborhood that you'll enjoy coming home to every day ... a neighborhood where other home owners care about the appearance of their homes, and the appearance of the neighborhood as a whole.
In other words, you want to choose a neighborhood that complements your home, as opposed to detracting from it.
Here are some resources to help you choose the right neighborhood before buying a home.
* Neighborhood Scout
* Yahoo Neighborhood Reports
* Helpful article on-site (scroll down to "location, location, location")
* Choosing the right neighborhood (About.com)
http://www.homebuyinginstitute.com/homebuyingtips/labels/Home%20buying%20questions.html
Home Buying Challenges Outlined in Report
Industry Survey Reports on New Challenges Facing Home Buyers
ARLINGTON, Va., Nov. 9 /PRNewswire-USNewswire/ -- Recently media attention has been heavily focused on the difficulties home sellers face with the current glut of inventory and the tightening of the sub-prime mortgage market. However, according to a Fall member survey and report from the National Association of Exclusive Buyer Agents (www.naeba.org), home buyers are also facing new challenges. The report, titled "Under-Reported Home Buying Issues: How home buyers can overcome the latest buying challenges" contains survey results, case histories, and strategies buyers can use to best meet these challenges. The report is available as a free download at the association Web site: http://www.naeba.org/challenges.
The report highlights many important issues for buyers, but the rising use of buyer agent bonuses and difficulties when buying foreclosed homes were two of the most revealing.
"One of the top issues for buyers, in what industry insiders refer to as 'buyer agent bribes,' is when a seller offers a bonus to the buyer agent to put a full price contract together on their home. A buyer's agent should be loyal only to the buyer and sometimes buyers don't find out about these bonuses until the deal is done," reported Jon Boyd, President of the NAEBA.
The report also includes recommendations buyers should keep in mind when considering a foreclosed property including tactics on contract addenda and contract timing. "A challenge that scored high in the survey was the difficulty associated with buying foreclosures. Awareness of the five tips we offer in the report can make the process of evaluating and purchasing a foreclosure a lot less frustrating," Boyd said.
The National Association of Exclusive Buyer Agents was founded in 1995 to help consumers become educated home buyers. NAEBA is a nonprofit organization whose purpose is to be the "champions of real estate buyers' rights and representation." NAEBA offers industry standard certifications, ongoing education, client referral services, technology and information sharing. The NAEBA Code of Ethics pledges undivided loyalty to real estate buyers only. More information about NAEBA can be found at www.naeba.org.
Website: http://www.naeba.org/
Note: One of the areas of difficulty mentioned in this press release was the act of buying a foreclosed home. You can learn more about buying foreclosed homes on our website.
ARLINGTON, Va., Nov. 9 /PRNewswire-USNewswire/ -- Recently media attention has been heavily focused on the difficulties home sellers face with the current glut of inventory and the tightening of the sub-prime mortgage market. However, according to a Fall member survey and report from the National Association of Exclusive Buyer Agents (www.naeba.org), home buyers are also facing new challenges. The report, titled "Under-Reported Home Buying Issues: How home buyers can overcome the latest buying challenges" contains survey results, case histories, and strategies buyers can use to best meet these challenges. The report is available as a free download at the association Web site: http://www.naeba.org/challenges.
The report highlights many important issues for buyers, but the rising use of buyer agent bonuses and difficulties when buying foreclosed homes were two of the most revealing.
"One of the top issues for buyers, in what industry insiders refer to as 'buyer agent bribes,' is when a seller offers a bonus to the buyer agent to put a full price contract together on their home. A buyer's agent should be loyal only to the buyer and sometimes buyers don't find out about these bonuses until the deal is done," reported Jon Boyd, President of the NAEBA.
The report also includes recommendations buyers should keep in mind when considering a foreclosed property including tactics on contract addenda and contract timing. "A challenge that scored high in the survey was the difficulty associated with buying foreclosures. Awareness of the five tips we offer in the report can make the process of evaluating and purchasing a foreclosure a lot less frustrating," Boyd said.
The National Association of Exclusive Buyer Agents was founded in 1995 to help consumers become educated home buyers. NAEBA is a nonprofit organization whose purpose is to be the "champions of real estate buyers' rights and representation." NAEBA offers industry standard certifications, ongoing education, client referral services, technology and information sharing. The NAEBA Code of Ethics pledges undivided loyalty to real estate buyers only. More information about NAEBA can be found at www.naeba.org.
Website: http://www.naeba.org/
Note: One of the areas of difficulty mentioned in this press release was the act of buying a foreclosed home. You can learn more about buying foreclosed homes on our website.
Wednesday, November 14, 2007
Buy with Resale in Mind
What are you thinking about when buying a new home? Are you thinking about the way that you can start your new life there? How about the money that you are going to spend? While there are some things which keep your mind busy when you are shopping for a real estate and there is one thing which you should not forget. Do you know what that may be? Whether you buy real estate with the idea of reselling. Sure, you may live in your home for a long years but you should not forget the resale opportunities.
When buying a home you need to remember that you are not going to live your rest of your life in the same house. This means you want to own the real estate and resell it to somebody else. For most people this is not a difficult, but if you do take this into consideration when buying in the first place you may find yourself in deep conflict. Take this situation for example.
You may find a great home that suits your every need, including your budget. The only issue is that the home is in a part of town that has been on the deterioration in recent years. If you really want the home you may end up buying it, and hoping that everything works out; and it may work for you. But what happens if the neighborhood continues to rapidly decline?
Very soon you will be living in your dream home in an unsafe area. In turn,it may be complicated when you go to resell this real estate . This will lead to losing money on the deal in the long run. And anytime that you lose money on real estate you should not be happy with yourself.
There are sufficient of lands that you can buy which will increase in value over time. Overall, you need to buy real estate with the idea that you may have to sell it sooner or later. Anyhow this should not be the only thing that you consider, but it is definitely something that should be ingrained in the back of your mind.
http://www.realestatearticledirectory.com/articles/home-buying/article230.html
When buying a home you need to remember that you are not going to live your rest of your life in the same house. This means you want to own the real estate and resell it to somebody else. For most people this is not a difficult, but if you do take this into consideration when buying in the first place you may find yourself in deep conflict. Take this situation for example.
You may find a great home that suits your every need, including your budget. The only issue is that the home is in a part of town that has been on the deterioration in recent years. If you really want the home you may end up buying it, and hoping that everything works out; and it may work for you. But what happens if the neighborhood continues to rapidly decline?
Very soon you will be living in your dream home in an unsafe area. In turn,it may be complicated when you go to resell this real estate . This will lead to losing money on the deal in the long run. And anytime that you lose money on real estate you should not be happy with yourself.
There are sufficient of lands that you can buy which will increase in value over time. Overall, you need to buy real estate with the idea that you may have to sell it sooner or later. Anyhow this should not be the only thing that you consider, but it is definitely something that should be ingrained in the back of your mind.
http://www.realestatearticledirectory.com/articles/home-buying/article230.html
Budget your Money before you buy
If you are going to buy a new house there are several details that you should refer before getting started .One of the highly imperative is your budget. It will be complicated if you don't know how much you are going to afford and how much you are left with .
Your budget plays a major role in buying a home and how you are going to move further. There are two different things that go into your budget. First, you need to look at your monthly income .If you are getting a steady paycheck then it is easy to move forward . On the other side if you are self employed it will be little bit complicated.
Just make sure that when you are looking at these things that you write down information. If you mess up this process you could end up in a bad situation. Now you know your monthly income , the next step is to consider your expenses. This includes everything from utilities to loans to money that you need for fun. When you know all of your expenses, you can then decrease that number from the money that you make each month.
This will give you a very good idea as to how much money you have left over on a monthly basis. From there, you can probably guess how much you can afford to a home. As you can see, a budget is very important if you are going to be buying a new home. Not only it will help you to prepare for the buying procedure, but it will also help you when you own your home . Sure, you may be able to get away without planning your budget but this is not a risk that you should be willing to take. Instead, take a few minutes and plan out an exact budget that you can follow during the entire buying process.If you are going to buy a new house there are several details that you should refer before getting started .One of the highly imperative is your budget. It will be complicated if you don't know how much you are going to afford and how much you are left with .
Your budget plays a major role in buying a home and how you are going to move further. There are two different things that go into your budget. First, you need to look at your monthly income .If you are getting a steady paycheck then it is easy to move forward . On the other side if you are self employed it will be little bit complicated.
Just make sure that when you are looking at these things that you write down information. If you mess up this process you could end up in a bad situation. Now you know your monthly income , the next step is to consider your expenses. This includes everything from utilities to loans to money that you need for fun. When you know all of your expenses, you can then decrease that number from the money that you make each month.
This will give you a very good idea as to how much money you have left over on a monthly basis. From there, you can probably guess how much you can afford to a home. As you can see, a budget is very important if you are going to be buying a new home. Not only it will help you to prepare for the buying procedure, but it will also help you when you own your home . Sure, you may be able to get away without planning your budget but this is not a risk that you should be willing to take. Instead, take a few minutes and plan out an exact budget that you can follow during the entire buying process.
http://www.realestatearticledirectory.com/articles/home-buying/article228.html
Your budget plays a major role in buying a home and how you are going to move further. There are two different things that go into your budget. First, you need to look at your monthly income .If you are getting a steady paycheck then it is easy to move forward . On the other side if you are self employed it will be little bit complicated.
Just make sure that when you are looking at these things that you write down information. If you mess up this process you could end up in a bad situation. Now you know your monthly income , the next step is to consider your expenses. This includes everything from utilities to loans to money that you need for fun. When you know all of your expenses, you can then decrease that number from the money that you make each month.
This will give you a very good idea as to how much money you have left over on a monthly basis. From there, you can probably guess how much you can afford to a home. As you can see, a budget is very important if you are going to be buying a new home. Not only it will help you to prepare for the buying procedure, but it will also help you when you own your home . Sure, you may be able to get away without planning your budget but this is not a risk that you should be willing to take. Instead, take a few minutes and plan out an exact budget that you can follow during the entire buying process.If you are going to buy a new house there are several details that you should refer before getting started .One of the highly imperative is your budget. It will be complicated if you don't know how much you are going to afford and how much you are left with .
Your budget plays a major role in buying a home and how you are going to move further. There are two different things that go into your budget. First, you need to look at your monthly income .If you are getting a steady paycheck then it is easy to move forward . On the other side if you are self employed it will be little bit complicated.
Just make sure that when you are looking at these things that you write down information. If you mess up this process you could end up in a bad situation. Now you know your monthly income , the next step is to consider your expenses. This includes everything from utilities to loans to money that you need for fun. When you know all of your expenses, you can then decrease that number from the money that you make each month.
This will give you a very good idea as to how much money you have left over on a monthly basis. From there, you can probably guess how much you can afford to a home. As you can see, a budget is very important if you are going to be buying a new home. Not only it will help you to prepare for the buying procedure, but it will also help you when you own your home . Sure, you may be able to get away without planning your budget but this is not a risk that you should be willing to take. Instead, take a few minutes and plan out an exact budget that you can follow during the entire buying process.
http://www.realestatearticledirectory.com/articles/home-buying/article228.html
How to buy a house - a step by step guide for first time buyers (UK)
Buying a house can be quite a confusing process especially if you haven't done so before. To help make it easier to understand the process of buying a property we have created a helpful list.
Take a good hard look at your lifestyle and decide which type of property is the most suitable for the way you live. Do you need a house with a garden or an apartment which is not on the ground floor? Where do you want to live? How many bedrooms do you need? Do you need a garage or parking space?
For most people, the cost of their home depends on how much they earn and therefore how big a mortgage they can secure. As a rough guide, most lenders will allow you up to two and a half times your salary, some more than this. Based on this calculation you should be able to find out how much you have to spend. It may be that at this point your dreams of a country mansion transform into a two bedroom city flat. Be realistic about the amount of money you have to spend. Save up as much deposit as you can - aim for at least 10% of the property value if possible.
Arrange a mortgage in principle with a lender - this will help you when you start viewing properties as you will taken more seriously by the estate agents and vendors.
Make contact with a solicitor who will be able to take charge of all the legal aspects of buying a property. A good starting point is to ask friends and family if they know of any good solicitors who they can recommend to you. You can speak to several and ask for an estimate of what their services will cost you before choosing which one to stick with.
Now that you have decided on the type of property you would like to buy, have your finances agreed in principle and have found a suitable solicitor you can contact/register with estate agents and start viewing suitable property.
Once you have found a property that you like you can make an offer via the estate agent. If you feel that the property is correctly priced and do not want to miss out on your ideal home you may wish to offer the full or near asking price.
If your offer is accepted it is a good idea to ask for the property to be taken off the market which will help deter other offers on the property.
At this point your solicitor should be asked to start work on the legal process of buying a house.
A survey will need to be undertaken on the property. You may like to conduct a full survey to be sure that the property is in good condition and that you will not have any nasty/costly surprises in the future.
Once the survey is completed and as long as there are no problems with the property the lender will agree to lend you the money.
The survey report will be sent to the solicitor to check. Your legal team will carry out a local search to make sure there are no plans for anything which will affect the value of your property. The contract is then finalised and they will then confirm with the lender the mortgage.
The deposit for the property should now be given to the solicitor who will hold it for you.
Contracts are exchanged between the solicitors of both parties concerned (the seller/vendor and you the buyer), deposit is given over to the seller and a date for completion is agreed.
Transfer deeds are prepared by the solicitor to be signed.
The mortgage money is transferred into the seller's account via your solicitor. You will then receive the transfer deeds, land registry certificate and keys to your new home.
On completion you can now move in to your new home which you now legally own.
Your solicitor should pay stamp duty, have the deeds stamped and pass title deeds to the mortgage lender. You will only receive the title deeds once your mortgage is completely paid back.
You will have to pay your solicitor for the work he has carried out on your behalf.
http://www.realestatearticledirectory.com/articles/home-buying/article18.html
Take a good hard look at your lifestyle and decide which type of property is the most suitable for the way you live. Do you need a house with a garden or an apartment which is not on the ground floor? Where do you want to live? How many bedrooms do you need? Do you need a garage or parking space?
For most people, the cost of their home depends on how much they earn and therefore how big a mortgage they can secure. As a rough guide, most lenders will allow you up to two and a half times your salary, some more than this. Based on this calculation you should be able to find out how much you have to spend. It may be that at this point your dreams of a country mansion transform into a two bedroom city flat. Be realistic about the amount of money you have to spend. Save up as much deposit as you can - aim for at least 10% of the property value if possible.
Arrange a mortgage in principle with a lender - this will help you when you start viewing properties as you will taken more seriously by the estate agents and vendors.
Make contact with a solicitor who will be able to take charge of all the legal aspects of buying a property. A good starting point is to ask friends and family if they know of any good solicitors who they can recommend to you. You can speak to several and ask for an estimate of what their services will cost you before choosing which one to stick with.
Now that you have decided on the type of property you would like to buy, have your finances agreed in principle and have found a suitable solicitor you can contact/register with estate agents and start viewing suitable property.
Once you have found a property that you like you can make an offer via the estate agent. If you feel that the property is correctly priced and do not want to miss out on your ideal home you may wish to offer the full or near asking price.
If your offer is accepted it is a good idea to ask for the property to be taken off the market which will help deter other offers on the property.
At this point your solicitor should be asked to start work on the legal process of buying a house.
A survey will need to be undertaken on the property. You may like to conduct a full survey to be sure that the property is in good condition and that you will not have any nasty/costly surprises in the future.
Once the survey is completed and as long as there are no problems with the property the lender will agree to lend you the money.
The survey report will be sent to the solicitor to check. Your legal team will carry out a local search to make sure there are no plans for anything which will affect the value of your property. The contract is then finalised and they will then confirm with the lender the mortgage.
The deposit for the property should now be given to the solicitor who will hold it for you.
Contracts are exchanged between the solicitors of both parties concerned (the seller/vendor and you the buyer), deposit is given over to the seller and a date for completion is agreed.
Transfer deeds are prepared by the solicitor to be signed.
The mortgage money is transferred into the seller's account via your solicitor. You will then receive the transfer deeds, land registry certificate and keys to your new home.
On completion you can now move in to your new home which you now legally own.
Your solicitor should pay stamp duty, have the deeds stamped and pass title deeds to the mortgage lender. You will only receive the title deeds once your mortgage is completely paid back.
You will have to pay your solicitor for the work he has carried out on your behalf.
http://www.realestatearticledirectory.com/articles/home-buying/article18.html
Re-Financing with an Interest Only Mortgage
Interest only mortgages are a relatively new phenomenon in the re-financing industry as well as the home buying industry. While the appeal of an interest only mortgage is typically a greater monthly cash flow, this increased cash flow can come with a hefty price tag. In exchange for more cash flow each month, the homeowner may be sacrificing the ability to obtain a fixed rate mortgage as well as the ability to build equity.
Greater Monthly Cash Flow - The one main advantage for many homeowners in an interest only mortgage is the ability to increase monthly cash flow. Homeowners who re-finance by utilizing an interest only mortgage will likely have more money available each month because they will only be paying interest on their mortgage initially.
While interest only loans may not be ideal, they can be beneficial in the situation where the homeowner is having a great deal fulfilling his monthly obligations. In this case, the homeowner may be willing to sacrifice an overall financial loss for the ability to continue to pay monthly bills in a timely fashion.
Unknown Risks of an ARM - Interest only re-finance loans are typically offered with an adjustable rate mortgage (ARM) this means the interest rate is not fixed and may fluctuate with the rise and fall of the prime index. This risk can be quite costly for the homeowner if the interest rate rises significantly. There is usually a cap placed on the amount, in terms of percentage, the interest rate can rise in a certain period but this can still be a very costly mistake for the homeowners.
An ARM re-finance option with an interest only component may be worthwhile in some situations. For example if the homeowner has a hybrid mortgage which features a fixed interest rate during the interest only portion and an ARM during the principal and interest portion of the loan they might benefit from this situation if they do not plan to stay in the home for longer than the interest only period. This period may vary depending on the lender and the circumstances.
No Equity in the Home - Another disadvantage to the interest only re-finance loans is they do not allow the homeowner to build equity in the home during the initial period where only the interest on the loan is repaid. This can be a problem for homeowners who are looking to profit through the sale of their home. These homeowners may find the participation in an interest only re-finance has had a damaging effect on the profit they are able to generate from the resale of their home.
http://www.realestatearticledirectory.com/articles/home-buying/article252.html
Greater Monthly Cash Flow - The one main advantage for many homeowners in an interest only mortgage is the ability to increase monthly cash flow. Homeowners who re-finance by utilizing an interest only mortgage will likely have more money available each month because they will only be paying interest on their mortgage initially.
While interest only loans may not be ideal, they can be beneficial in the situation where the homeowner is having a great deal fulfilling his monthly obligations. In this case, the homeowner may be willing to sacrifice an overall financial loss for the ability to continue to pay monthly bills in a timely fashion.
Unknown Risks of an ARM - Interest only re-finance loans are typically offered with an adjustable rate mortgage (ARM) this means the interest rate is not fixed and may fluctuate with the rise and fall of the prime index. This risk can be quite costly for the homeowner if the interest rate rises significantly. There is usually a cap placed on the amount, in terms of percentage, the interest rate can rise in a certain period but this can still be a very costly mistake for the homeowners.
An ARM re-finance option with an interest only component may be worthwhile in some situations. For example if the homeowner has a hybrid mortgage which features a fixed interest rate during the interest only portion and an ARM during the principal and interest portion of the loan they might benefit from this situation if they do not plan to stay in the home for longer than the interest only period. This period may vary depending on the lender and the circumstances.
No Equity in the Home - Another disadvantage to the interest only re-finance loans is they do not allow the homeowner to build equity in the home during the initial period where only the interest on the loan is repaid. This can be a problem for homeowners who are looking to profit through the sale of their home. These homeowners may find the participation in an interest only re-finance has had a damaging effect on the profit they are able to generate from the resale of their home.
http://www.realestatearticledirectory.com/articles/home-buying/article252.html
Home Buying 101 - How To Avoid "The One" Syndrome
When you're shopping for your first home -- of any home for that matter -- it's easy to get caught up in the excitement. And that's only natural.
Buying a new home should excite you. But you also need to be analytical and realistic about the home buying process. After all, there's a lot of money on the line.
Truth is, many buyers err on the side of emotion. In their excitement, they overlook aspects of a home or neighborhood that would normally turn them away. Next thing they know, there's a contract on the table and earnest money in the bank. In short, they succumb to "The One" Syndrome.
What is this syndrome, and how do you know if you're a victim? Here's a test:
If, during your home buying experience, you've ever pulled up to a house and blurted "This is the one!" before even getting out of the car . you've been a victim of "The One" syndrome.
There's nothing wrong with feeling good about a house based on a first impression. Truth is, first impressions say a lot about a house, so they should be part of your decision-making criteria. But you must remain objective in spite of your excitement. Here's why:
Emotion has a way of playing with our heads. A strong emotional reaction can blind you to other realities that would normally be crystal clear. In home buying terms, this means you might overlook serious flaws or disadvantages about a house as a result of your excitement.
Here are some tips to help you balance emotion with logic for a safer home buying experience.
1. Pretend you're screening the house for a friend, not for yourself. This will help you remain cool-headed and business-like throughout your visit.
2. Another take on the friend approach is to bring a friend along with you. A friend can give you an objective viewpoint and might help you remember things about a house you wouldn't otherwise recall.
3. Have a checklist before visiting each house. The list should include all the things you're looking for in a house, arranged by most to least important. Having them on paper will remind you to check the house for them -- even in a state of, shall we say, heightened emotion.
4. When you find a house you like, visit it more than once. You'll be amazed at the things you notice the second time around, after your initial excitement has worn off.
Of course, if you're in a seller's market where houses sell quickly, you'll have less time for the tactics listed above. But it still pays to be objective.
Home buying brings out all kinds of emotions. That's only natural. But for something that affects your life so dramatically -- and so financially -- it pays to keep a cool head. And don't worry, you'll find "the one" soon enough.
http://www.getitdone101.com/articles-database/Home-Buying-101---How-To-Avoid--The-One--Syndrome.html
Buying a new home should excite you. But you also need to be analytical and realistic about the home buying process. After all, there's a lot of money on the line.
Truth is, many buyers err on the side of emotion. In their excitement, they overlook aspects of a home or neighborhood that would normally turn them away. Next thing they know, there's a contract on the table and earnest money in the bank. In short, they succumb to "The One" Syndrome.
What is this syndrome, and how do you know if you're a victim? Here's a test:
If, during your home buying experience, you've ever pulled up to a house and blurted "This is the one!" before even getting out of the car . you've been a victim of "The One" syndrome.
There's nothing wrong with feeling good about a house based on a first impression. Truth is, first impressions say a lot about a house, so they should be part of your decision-making criteria. But you must remain objective in spite of your excitement. Here's why:
Emotion has a way of playing with our heads. A strong emotional reaction can blind you to other realities that would normally be crystal clear. In home buying terms, this means you might overlook serious flaws or disadvantages about a house as a result of your excitement.
Here are some tips to help you balance emotion with logic for a safer home buying experience.
1. Pretend you're screening the house for a friend, not for yourself. This will help you remain cool-headed and business-like throughout your visit.
2. Another take on the friend approach is to bring a friend along with you. A friend can give you an objective viewpoint and might help you remember things about a house you wouldn't otherwise recall.
3. Have a checklist before visiting each house. The list should include all the things you're looking for in a house, arranged by most to least important. Having them on paper will remind you to check the house for them -- even in a state of, shall we say, heightened emotion.
4. When you find a house you like, visit it more than once. You'll be amazed at the things you notice the second time around, after your initial excitement has worn off.
Of course, if you're in a seller's market where houses sell quickly, you'll have less time for the tactics listed above. But it still pays to be objective.
Home buying brings out all kinds of emotions. That's only natural. But for something that affects your life so dramatically -- and so financially -- it pays to keep a cool head. And don't worry, you'll find "the one" soon enough.
http://www.getitdone101.com/articles-database/Home-Buying-101---How-To-Avoid--The-One--Syndrome.html
Tuesday, November 13, 2007
How to Use a Mortgage Calculator
When buying a home in Austin, it's important to set a financial "comfort zone" for yourself.
Some people think a mortgage lender will do this for you, since they won't lend you more than they think you can afford. This is not the case. You should never let a mortgage lender set your spending limits for you. They will loan you a certain amount based on your risk profile, which comes from your credit score / FICO score. But their maximum amount might be higher than what you're comfortable paying. So you need to set your own maximum loan amount.
Mortgage calculators are a good way to do this. You can use them to determine the approximate monthly payment on a home loan. In this way, mortgage calculators can help you set your "comfort zone" for mortgage payments.
To determine your mortgage comfort zone, you need three things: a budget, a price and a mortgage calculator. For the price, just start with the cost of a house you think you might be interested in buying.
At first, don't worry about whether the price is too high -- you'll find that out soon enough when you run the numbers.
Next, run the home price through a free mortgage calculator at current interest rates and at a 30-year fixes mortgage. (You might choose a different mortgage type later on; but this exercise is just to get a ballpark mortgage payment based on home price, so choose the 30-year fixed option for the sake of simplicity.)
Mortgage loan calculators can easily be found on the Internet. Just type "mortgage calculator" into any major search engine, and you'll find several. We also a variety of free mortgage calculators at the Home Buying Institute.
http://homebuyingtips.statesmanblogs.com/Default.aspx?page=4
Some people think a mortgage lender will do this for you, since they won't lend you more than they think you can afford. This is not the case. You should never let a mortgage lender set your spending limits for you. They will loan you a certain amount based on your risk profile, which comes from your credit score / FICO score. But their maximum amount might be higher than what you're comfortable paying. So you need to set your own maximum loan amount.
Mortgage calculators are a good way to do this. You can use them to determine the approximate monthly payment on a home loan. In this way, mortgage calculators can help you set your "comfort zone" for mortgage payments.
To determine your mortgage comfort zone, you need three things: a budget, a price and a mortgage calculator. For the price, just start with the cost of a house you think you might be interested in buying.
At first, don't worry about whether the price is too high -- you'll find that out soon enough when you run the numbers.
Next, run the home price through a free mortgage calculator at current interest rates and at a 30-year fixes mortgage. (You might choose a different mortgage type later on; but this exercise is just to get a ballpark mortgage payment based on home price, so choose the 30-year fixed option for the sake of simplicity.)
Mortgage loan calculators can easily be found on the Internet. Just type "mortgage calculator" into any major search engine, and you'll find several. We also a variety of free mortgage calculators at the Home Buying Institute.
http://homebuyingtips.statesmanblogs.com/Default.aspx?page=4
Buying a Home With No Money Down - Scam or Legit?
Every time I hear the phrase "buying a home with no money down," I think of those late-night infomercials about get-rich-quick schemes and the like.
But buying a home with no money down is a legitimate concept these days ... and apparently a popular one.
One of my college buddies sells mortgages in the Austin area. He said one of the most common questions he gets is "How can I buy a home with no money down?"
Sure, there are plenty of scams out there targeting unsuspecting home buyers. But there are also quite a few legit programs for home buyers who don't have a lot of cash to put down.
If you'd like to learn more on this subject, I've gathered a few articles from reputable websites (CNN Money, BankRate.com, Home Buying Institute, etc.).
So without further ado, here is your partial education on buying a home with little (or no) money down:
Buying a Home With Little Down
This home buying article on CNN Money offers some insight into buying a home with little money down. An excerpt: "In general, the less you put down, the better your credit needs to be. Also, smaller down payments typically mean slightly higher interest rates, not to mention private mortgage insurance (PMI)."
Buying a Home With Little or No Cash
This Wells Fargo chart shows the kinds of programs you can use to buy a home with no money down (or with a minimal down payment). Note: these programs are specific to Wells Fargo. Other lenders may not offer these same options for no-money-down home buying.
No-Money-Down Home Buying
This article at BankRate.com explains your options for buying a home with no money down. An excerpt: "For many potential buyers, the problem is coming up with a down payment to make this all-important purchase. This should not be the case. It is possible to buy a home with nothing down, meaning no down payment."
Buying a Home with No Money Down
This article throws another variable into the mix. It talks about buying a home with no money down and poor credit.
http://homebuyingtips.statesmanblogs.com/Default.aspx?page=4
But buying a home with no money down is a legitimate concept these days ... and apparently a popular one.
One of my college buddies sells mortgages in the Austin area. He said one of the most common questions he gets is "How can I buy a home with no money down?"
Sure, there are plenty of scams out there targeting unsuspecting home buyers. But there are also quite a few legit programs for home buyers who don't have a lot of cash to put down.
If you'd like to learn more on this subject, I've gathered a few articles from reputable websites (CNN Money, BankRate.com, Home Buying Institute, etc.).
So without further ado, here is your partial education on buying a home with little (or no) money down:
Buying a Home With Little Down
This home buying article on CNN Money offers some insight into buying a home with little money down. An excerpt: "In general, the less you put down, the better your credit needs to be. Also, smaller down payments typically mean slightly higher interest rates, not to mention private mortgage insurance (PMI)."
Buying a Home With Little or No Cash
This Wells Fargo chart shows the kinds of programs you can use to buy a home with no money down (or with a minimal down payment). Note: these programs are specific to Wells Fargo. Other lenders may not offer these same options for no-money-down home buying.
No-Money-Down Home Buying
This article at BankRate.com explains your options for buying a home with no money down. An excerpt: "For many potential buyers, the problem is coming up with a down payment to make this all-important purchase. This should not be the case. It is possible to buy a home with nothing down, meaning no down payment."
Buying a Home with No Money Down
This article throws another variable into the mix. It talks about buying a home with no money down and poor credit.
http://homebuyingtips.statesmanblogs.com/Default.aspx?page=4
Home Buyer's Tooklit - 7 Essential Websites
Whether you're relocating to Austin, Texas from out of state, or just buying a new home here, the Internet can be your best friend.
Here are 7 essential websites to help with your Austin real estate experience:
AnnualCreditReport.com
Before you look at new homes in Austin, you need to look at your credit. Mortgage lenders will analyze your credit, so you should do the same. You can start by requesting copies of your credit report from all three credit-reporting companies: Experian, Equifax and TransUnion. To request your credit report from all three companies at once, visit the website listed below.
www.annualcreditreport.com
Mortgage101.com
If you need to brush up on your mortgage knowledge or use an accurate mortgage calculator, this is the website for you. Mortgage101.com is loaded with helpful tools, information and advice.
www.mortgage101.com
Interest.com
Interest.com provides news, articles tools and calculators -- all pertaining to interest rates.
www.interest.com
Google.com/alerts
With Google Alerts, you can stay on top of the Austin real estate scene with virtually no effort. Just set up alerts for key phrases relevant to your area (like "new homes in Austin" or "Austin, Texas real estate"), and you'll be notified by email whenever Google finds a new page with that phrase. Many of the notifications will come from news stories published online, so you'll stay well-informed about local developments.
www.google.com/alerts
HUD.gov
The Federal Housing Administration (FHA) -- which is part of HUD -- has been helping people become homeowners since 1934. Their website offers home buying advice, links to related resources and (most importantly) an explanation of your legal rights as a home buyer.
www.hud.gov/buying
HomeBuyingInstitute.com
If you're a first-time home buyer, you'll want to research the entire home buying process so you can have an idea of what to expect. There's one website that offers a good overview on every part of the home buying process, and that's the Home Buying Institute. www.homebuyinginstitute.com
NAHI.org
Home inspections are one of the best investments you can make during the home buying process. You'll only pay $300 to $500 for the inspection, but the peace of mind you get in return is priceless. To find a certified home inspector in your area, the best place to start is the official website of the National Association of Home Inspectors.
www.nahi.org
http://homebuyingtips.statesmanblogs.com/Default.aspx?page=7
Here are 7 essential websites to help with your Austin real estate experience:
AnnualCreditReport.com
Before you look at new homes in Austin, you need to look at your credit. Mortgage lenders will analyze your credit, so you should do the same. You can start by requesting copies of your credit report from all three credit-reporting companies: Experian, Equifax and TransUnion. To request your credit report from all three companies at once, visit the website listed below.
www.annualcreditreport.com
Mortgage101.com
If you need to brush up on your mortgage knowledge or use an accurate mortgage calculator, this is the website for you. Mortgage101.com is loaded with helpful tools, information and advice.
www.mortgage101.com
Interest.com
Interest.com provides news, articles tools and calculators -- all pertaining to interest rates.
www.interest.com
Google.com/alerts
With Google Alerts, you can stay on top of the Austin real estate scene with virtually no effort. Just set up alerts for key phrases relevant to your area (like "new homes in Austin" or "Austin, Texas real estate"), and you'll be notified by email whenever Google finds a new page with that phrase. Many of the notifications will come from news stories published online, so you'll stay well-informed about local developments.
www.google.com/alerts
HUD.gov
The Federal Housing Administration (FHA) -- which is part of HUD -- has been helping people become homeowners since 1934. Their website offers home buying advice, links to related resources and (most importantly) an explanation of your legal rights as a home buyer.
www.hud.gov/buying
HomeBuyingInstitute.com
If you're a first-time home buyer, you'll want to research the entire home buying process so you can have an idea of what to expect. There's one website that offers a good overview on every part of the home buying process, and that's the Home Buying Institute. www.homebuyinginstitute.com
NAHI.org
Home inspections are one of the best investments you can make during the home buying process. You'll only pay $300 to $500 for the inspection, but the peace of mind you get in return is priceless. To find a certified home inspector in your area, the best place to start is the official website of the National Association of Home Inspectors.
www.nahi.org
http://homebuyingtips.statesmanblogs.com/Default.aspx?page=7
Buying a Home in Austin: How to Avoid "The One" Syndrome
When shopping for your first home in the Austin area, it's easy to get caught up in the excitement. And that's only natural.
Buying a new home should excite you. But you also need to be analytical and realistic about the home buying process. After all, there's a lot of money on the line.
Truth is, many buyers err on the side of emotion. In their excitement, they overlook aspects of a home or neighborhood that would normally turn them away. Next thing they know, there's a contract on the table and earnest money in the bank. In short, they succumb to "The One" Syndrome.
What is this syndrome, and how do you know if you're a victim? Here's a test:
If, during your home buying experience, you've ever pulled up to a house and blurted "This is the one!" before even getting out of the car … you've been a victim of "The One" syndrome.
There's nothing wrong with feeling good about a house based on a first impression. But you must remain objective in spite of your excitement. Here's why:
Emotion has a way of playing with our heads. A strong emotional reaction can blind you to other realities that would normally be crystal clear. In home buying terms, this means you might overlook serious flaws or disadvantages about a house as a result of your excitement.
Here are some tips to help you balance emotion with logic for a safer home buying experience.
1. Pretend you're screening the house for a friend, not for yourself. This will help you remain cool-headed and business-like throughout your visit.
2. Another take on the friend approach is to bring a friend along with you. A friend can give you an objective viewpoint and might help you remember things about a house you wouldn't otherwise recall.
3. Have a checklist before visiting each house. The list should include all the things you're looking for in a house, arranged by most to least important. Having them on paper will remind you to check the house for them -- even in a state of, shall we say, heightened emotion.
4. When you find a house you like, visit it more than once. You'll be amazed at the things you notice the second time around, after your initial excitement has worn off.
The Austin area is great place to live. And owning your own home makes it even better! So it's only natural to get excited about the idea. But for something that affects your life so dramatically -- and so financially -- it pays to keep a cool head. And don't worry, you'll find "the one" soon enough.
* Copyright 2006, Brandon Cornett. You may republish this article in its entirety, provided you leave the byline, author's note and website hyperlink intact.
Brandon Cornett is the editor of HomeBuyingInstitute.com, one of the Internet's largest and most respected libraries of home buying information -- more than 100 expert articles in 12 different home buying categories! Put this knowledge to use by visiting
http://homebuyingtips.statesmanblogs.com/Default.aspx?page=9
Buying a new home should excite you. But you also need to be analytical and realistic about the home buying process. After all, there's a lot of money on the line.
Truth is, many buyers err on the side of emotion. In their excitement, they overlook aspects of a home or neighborhood that would normally turn them away. Next thing they know, there's a contract on the table and earnest money in the bank. In short, they succumb to "The One" Syndrome.
What is this syndrome, and how do you know if you're a victim? Here's a test:
If, during your home buying experience, you've ever pulled up to a house and blurted "This is the one!" before even getting out of the car … you've been a victim of "The One" syndrome.
There's nothing wrong with feeling good about a house based on a first impression. But you must remain objective in spite of your excitement. Here's why:
Emotion has a way of playing with our heads. A strong emotional reaction can blind you to other realities that would normally be crystal clear. In home buying terms, this means you might overlook serious flaws or disadvantages about a house as a result of your excitement.
Here are some tips to help you balance emotion with logic for a safer home buying experience.
1. Pretend you're screening the house for a friend, not for yourself. This will help you remain cool-headed and business-like throughout your visit.
2. Another take on the friend approach is to bring a friend along with you. A friend can give you an objective viewpoint and might help you remember things about a house you wouldn't otherwise recall.
3. Have a checklist before visiting each house. The list should include all the things you're looking for in a house, arranged by most to least important. Having them on paper will remind you to check the house for them -- even in a state of, shall we say, heightened emotion.
4. When you find a house you like, visit it more than once. You'll be amazed at the things you notice the second time around, after your initial excitement has worn off.
The Austin area is great place to live. And owning your own home makes it even better! So it's only natural to get excited about the idea. But for something that affects your life so dramatically -- and so financially -- it pays to keep a cool head. And don't worry, you'll find "the one" soon enough.
* Copyright 2006, Brandon Cornett. You may republish this article in its entirety, provided you leave the byline, author's note and website hyperlink intact.
Brandon Cornett is the editor of HomeBuyingInstitute.com, one of the Internet's largest and most respected libraries of home buying information -- more than 100 expert articles in 12 different home buying categories! Put this knowledge to use by visiting
http://homebuyingtips.statesmanblogs.com/Default.aspx?page=9
Building a Home in Austin, Texas: 7 Steps to Success
Austin, Texas is becoming one of the nation's most popular places to build a custom home. There's the culture, the lifestyle, the weather, and of course ... the affordability.
When building a custom home in Austin -- or anywhere else, for that matter -- there are no hard and fast rules that apply across the board. The very nature of a custom home means it is different from others, so the building process often varies from home to home.
With that being said, there are certain steps you can follow to ensure your home building process is a smooth one:
1. Determine Your Budget
Having a custom home built may be the biggest financial decision you ever make. So before you start talking to builders or looking at lots, you need to determine your budget.
Start by adding up your monthly expenditures. Leave housing out of the equation for now -- just focus on food, shopping, lifestyle, car payments, insurance, investments, etc. Compare these figures to your monthly income to see how much of a house you might realistically afford. Use an online mortgage calculator to make things easier.
If you currently own a home, this calculation will be much easier. You simply have to ask yourself, "How much more could I comfortably pay each month for a larger mortgage?"
2. Determine Your Location
When choosing a location for your new home, start with the obvious questions. Is it close to work, school and shopping? Are there major roadways, railroads or other noise-producers nearby? What are the taxes like? How are the school systems? (Quality of schools is important whether or not you have children, because it affects your property values.)
Once you've answered the obvious questions, move on to the less-obvious ones: What kind of development is planned for the foreseeable future? Will that beautiful meadow across the street be a parking lot in two years? As of this writing, there's a lot of highway development and expansion happening in Austin, Texas, so be sure you get a long-range picture of your preferred location.
3. Make a List of Builders
Once you've decided what part of town you want to live in, you can begin making a list of builders who work in the area. You might start by using the search engines, or by visiting some of the online directories of home builders, such as Reals.com or BuildingOnline.com.
Once you have a list of some of the top builders in your chosen area, start your fact-finding mission. Request brochures, visit model homes, surf their websites. Do whatever you can to gather information on each builder's reputation, expertise, price range, floor plans and other important criteria.
4. Decide On a Builder
Choosing your custom home builder is a major step. But if you've completed the previous step and conducted some thorough research, you'll have a much easier decision to make.
Once you've established that a builder has a good reputation and a genuine commitment to your happiness, you need to ask the big question: "Does this builder create the kind of home I can see myself in? Does it feel right to me?" Take your time answering these questions and making your ultimate decision.
5. Choose Your Lot
Before you can start looking at floor plans for your new dream home, you need to choose a lot. Floor plans are often dependent on the lot you choose, so the lot usually has to be decided on first.
The reasons for this are sometimes obvious and other times not. Obviously, a longer home will require a longer lot. But there may be other considerations at work. For example, maybe the developer wants to stagger one-story homes and two-story homes throughout the community for overall appeal.
These considerations will vary from builder to builder. For now, just realize that the floor plan will usually depend on the lot you choose. So remember to ask plenty of questions about this along the way.
6. Pick a Floor Plan
One of the great things about a custom home is that it's, well … custom. Sometimes a custom home builder will offer basic floor plans that you can modify as you wish. Other times, the floor plans are created "from scratch" in coordination with an architect. Either way, you have an opportunity to build a home around your present and future needs.
This step of the process will involve many questions. How much space do you need? How many rooms? One story or two? Any special features, like a wraparound deck? This can often be the most exciting part of the home building process, because it involves turning your vision into a reality.
7. Negotiate the Contract
Be sure to get a written contract signed by the builder and the architect / designer (if there's an architect involved). A contract for new home construction should describe the project in detail, and it should include a listing of all the features to be included in the home. Ask for a contract amendment if the project changes later on, and make sure you get all of your questions answered before signing.
Recommended Resource
If you're thinking of buying a custom home in Austin, Texas, take a look at Harrington Custom Homes. They've been building homes in Austin for over 15 years. Visit them online at www.harringtonhomes.com
http://homebuyingtips.statesmanblogs.com/Default.aspx?page=9
When building a custom home in Austin -- or anywhere else, for that matter -- there are no hard and fast rules that apply across the board. The very nature of a custom home means it is different from others, so the building process often varies from home to home.
With that being said, there are certain steps you can follow to ensure your home building process is a smooth one:
1. Determine Your Budget
Having a custom home built may be the biggest financial decision you ever make. So before you start talking to builders or looking at lots, you need to determine your budget.
Start by adding up your monthly expenditures. Leave housing out of the equation for now -- just focus on food, shopping, lifestyle, car payments, insurance, investments, etc. Compare these figures to your monthly income to see how much of a house you might realistically afford. Use an online mortgage calculator to make things easier.
If you currently own a home, this calculation will be much easier. You simply have to ask yourself, "How much more could I comfortably pay each month for a larger mortgage?"
2. Determine Your Location
When choosing a location for your new home, start with the obvious questions. Is it close to work, school and shopping? Are there major roadways, railroads or other noise-producers nearby? What are the taxes like? How are the school systems? (Quality of schools is important whether or not you have children, because it affects your property values.)
Once you've answered the obvious questions, move on to the less-obvious ones: What kind of development is planned for the foreseeable future? Will that beautiful meadow across the street be a parking lot in two years? As of this writing, there's a lot of highway development and expansion happening in Austin, Texas, so be sure you get a long-range picture of your preferred location.
3. Make a List of Builders
Once you've decided what part of town you want to live in, you can begin making a list of builders who work in the area. You might start by using the search engines, or by visiting some of the online directories of home builders, such as Reals.com or BuildingOnline.com.
Once you have a list of some of the top builders in your chosen area, start your fact-finding mission. Request brochures, visit model homes, surf their websites. Do whatever you can to gather information on each builder's reputation, expertise, price range, floor plans and other important criteria.
4. Decide On a Builder
Choosing your custom home builder is a major step. But if you've completed the previous step and conducted some thorough research, you'll have a much easier decision to make.
Once you've established that a builder has a good reputation and a genuine commitment to your happiness, you need to ask the big question: "Does this builder create the kind of home I can see myself in? Does it feel right to me?" Take your time answering these questions and making your ultimate decision.
5. Choose Your Lot
Before you can start looking at floor plans for your new dream home, you need to choose a lot. Floor plans are often dependent on the lot you choose, so the lot usually has to be decided on first.
The reasons for this are sometimes obvious and other times not. Obviously, a longer home will require a longer lot. But there may be other considerations at work. For example, maybe the developer wants to stagger one-story homes and two-story homes throughout the community for overall appeal.
These considerations will vary from builder to builder. For now, just realize that the floor plan will usually depend on the lot you choose. So remember to ask plenty of questions about this along the way.
6. Pick a Floor Plan
One of the great things about a custom home is that it's, well … custom. Sometimes a custom home builder will offer basic floor plans that you can modify as you wish. Other times, the floor plans are created "from scratch" in coordination with an architect. Either way, you have an opportunity to build a home around your present and future needs.
This step of the process will involve many questions. How much space do you need? How many rooms? One story or two? Any special features, like a wraparound deck? This can often be the most exciting part of the home building process, because it involves turning your vision into a reality.
7. Negotiate the Contract
Be sure to get a written contract signed by the builder and the architect / designer (if there's an architect involved). A contract for new home construction should describe the project in detail, and it should include a listing of all the features to be included in the home. Ask for a contract amendment if the project changes later on, and make sure you get all of your questions answered before signing.
Recommended Resource
If you're thinking of buying a custom home in Austin, Texas, take a look at Harrington Custom Homes. They've been building homes in Austin for over 15 years. Visit them online at www.harringtonhomes.com
http://homebuyingtips.statesmanblogs.com/Default.aspx?page=9
Monday, November 12, 2007
Buying a Sarasota Luxury Home: Selecting the Right Real Estate Agent
Luxury home buying is a unique segment of the Sarasota real estate market. It is essential that Sarasota luxury home buyers align themselves with real estate professionals that specialize in the upper-tier marketplace and are familiar with the needs of luxury home buyers. Not all agents can operate effectively in the luxury market.
Below are guidelines for selecting an agent in a Sarasota luxury home purchase.
1. Sarasota Market Expertise – It is critical that the agent selected have knowledge in the Sarasota real estate market and the price range targeted. A luxury home expert should be knowledgeable in all phases of the upper-tier market - amount of inventory, sales, days on the market, etc. The more knowledge an agent has in the Sarasota luxury home market, the bigger the asset they can be to their affluent clientele.
2. Experience – Understanding value in the luxury home market requires experience. A proven track record of closed sales in the high-end marketplace is a strong indicator of market savvy. Although new agents can provide excellent service, high-end buyers are better served enlisting the services of a Sarasota luxury home expert.
3. Education & Designations – Top agents in the luxury field continually expand their knowledge. Designations such as the “Certified Luxury Home Marketing Specialist” are indicators of those agents that provide the type of service luxury home buyers in Sarasota demand.
4. Communication - A good luxury agent will work with buyers to crystallize their goals and understand their needs. By developing a checklist with a clear set of goals and expectations, buyers will not waste their time on properties that do not meet their wants and needs.
5. Negotiation skills - There are many aspects that comprise a successful luxury real estate transaction for a buyer: price, conditions, dates, terms, conditions, etc. A successful luxury real estate agent is seasoned in the art of negotiation.
6. Contacts – Agents that specialize in the upper-tier market have developed relationships with experts in the Sarasota luxury home market. Below is a partial list of resources that luxury home agents can recommend.
Real Estate Attorneys
Jumbo Mortgage Loans
Craftsmen
Interior Designers
Architects
Artists
In summary, luxury market expertise + experience + communication + contacts = a Sarasota Luxury homes agent that can deliver the results luxury home buyers in Sarasota demand and deserve.
John Allen is a Sarasota Florida luxury homes real estate agent and president of Allen Real Estate Services, Inc. He is a member of the Institute for Luxury Home Marketing and Million Dollar Guild. For more information visit his website – www.buysarasota.com .
Article Source: http://EzineArticles.com/?expert=John_C._Allen
Below are guidelines for selecting an agent in a Sarasota luxury home purchase.
1. Sarasota Market Expertise – It is critical that the agent selected have knowledge in the Sarasota real estate market and the price range targeted. A luxury home expert should be knowledgeable in all phases of the upper-tier market - amount of inventory, sales, days on the market, etc. The more knowledge an agent has in the Sarasota luxury home market, the bigger the asset they can be to their affluent clientele.
2. Experience – Understanding value in the luxury home market requires experience. A proven track record of closed sales in the high-end marketplace is a strong indicator of market savvy. Although new agents can provide excellent service, high-end buyers are better served enlisting the services of a Sarasota luxury home expert.
3. Education & Designations – Top agents in the luxury field continually expand their knowledge. Designations such as the “Certified Luxury Home Marketing Specialist” are indicators of those agents that provide the type of service luxury home buyers in Sarasota demand.
4. Communication - A good luxury agent will work with buyers to crystallize their goals and understand their needs. By developing a checklist with a clear set of goals and expectations, buyers will not waste their time on properties that do not meet their wants and needs.
5. Negotiation skills - There are many aspects that comprise a successful luxury real estate transaction for a buyer: price, conditions, dates, terms, conditions, etc. A successful luxury real estate agent is seasoned in the art of negotiation.
6. Contacts – Agents that specialize in the upper-tier market have developed relationships with experts in the Sarasota luxury home market. Below is a partial list of resources that luxury home agents can recommend.
Real Estate Attorneys
Jumbo Mortgage Loans
Craftsmen
Interior Designers
Architects
Artists
In summary, luxury market expertise + experience + communication + contacts = a Sarasota Luxury homes agent that can deliver the results luxury home buyers in Sarasota demand and deserve.
John Allen is a Sarasota Florida luxury homes real estate agent and president of Allen Real Estate Services, Inc. He is a member of the Institute for Luxury Home Marketing and Million Dollar Guild. For more information visit his website – www.buysarasota.com .
Article Source: http://EzineArticles.com/?expert=John_C._Allen
Buying A Home With No Money Down or Bad Credit - PMI Can Make It Easier
Private mortgage insurance is an excellent method for homebuyers who have trouble saving money, are short on money, or have bad credit, to get into a home now. Private mortgage insurance is provided by a third party to protect the lender in the mortgage contract. This allows you to purchase a home with a much smaller down payment and if you have bad credit. You should note that this service does not protect you as the buyer; it protects the lenders such as a mortgage broker or a bank.
Private mortgage insurance is of a great value to those people who can afford the payments on a home but have not been able to save up the usual ten to twenty percent for a down payment. But, using private mortgage insurance you can lower your down payment amount to anywhere between three and five percent. This allows home buyers to move into a home much sooner and save money.
Private mortgage insurance is also very beneficial for people with bad credit who would otherwise be unable to obtain a mortgage. People with bad credit can now obtain mortgages by getting a third party to provide them with private mortgage insurance. By paying a small monthly fee for private mortgage insurance, approximately forty five dollars on a standard $100.000 home, people with bad credit could obtain a mortgage and begin repairing their credit.
After your home equity has been paid down to eighty percent or the appraise value of the home was obtained you are no longer required to keep the private mortgage insurance. You should make sure you cancel your private mortgage insurance as soon as possible; many people do not cancel their private mortgage insurance as soon as they are eligible and end up paying hundred of dollars a year more than they need to be.
To view our list of recommended mortgage lenders visit this page: Recommended Mortgage Lenders
Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans. The site has informative articles and the latest finance news.
Article Source: http://EzineArticles.com/?expert=Carrie_Reeder
Private mortgage insurance is of a great value to those people who can afford the payments on a home but have not been able to save up the usual ten to twenty percent for a down payment. But, using private mortgage insurance you can lower your down payment amount to anywhere between three and five percent. This allows home buyers to move into a home much sooner and save money.
Private mortgage insurance is also very beneficial for people with bad credit who would otherwise be unable to obtain a mortgage. People with bad credit can now obtain mortgages by getting a third party to provide them with private mortgage insurance. By paying a small monthly fee for private mortgage insurance, approximately forty five dollars on a standard $100.000 home, people with bad credit could obtain a mortgage and begin repairing their credit.
After your home equity has been paid down to eighty percent or the appraise value of the home was obtained you are no longer required to keep the private mortgage insurance. You should make sure you cancel your private mortgage insurance as soon as possible; many people do not cancel their private mortgage insurance as soon as they are eligible and end up paying hundred of dollars a year more than they need to be.
To view our list of recommended mortgage lenders visit this page: Recommended Mortgage Lenders
Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans. The site has informative articles and the latest finance news.
Article Source: http://EzineArticles.com/?expert=Carrie_Reeder
Saturday, November 10, 2007
Buy Houses In Dallas In Any Condition
Dallas houses have a great future ahead of them due to the boom times the Dallas economy is facing at the moment. Some say the crime rate in Dallas is pretty high, but that actually depends on where your home might be. If your home were in one of these suburbs of Dallas - Keller, Colleyville, Coppell, Lewisville, South Lake, Las Colinas, Carrollton, The Colony, Highland Park, University Park, Frisco, Allen, and Plano (among many others) - you will find that the crime rate is actually much lower here than the US-wide average.
You may be doubtful anyway and ask: is my home good enough for other people to buy? Well, the answer to that is: it depends what you are asking for it, for the condition it is in right now. There are realtors who are choosy about the Dallas homes they buy but there are also some who will buy Dallas houses that are in any state or condition (meaning, even the most dilapidated ones can be sold nowadays.) But be reasonable - you cannot expect a dilapidated and ugly home to command the same market price as a well-kept and beautifully-designed home. That would be like saying an ugly and run-down car is sold at the same price as top-of-the-line advanced and new car models. It just isn't realistic.
What would be realistic is if you were to take stock of your Dallas home and look into the following factors that may influence its sale price:
1.What was the original price at which you bought your home, or had it constructed for? This gives you a baseline from which you shouldn't budge when given offers by potential buyers - unless, your home is pretty run-down and has been neglected (in which case, you should factor in the depreciation of the market price so that you come up with a fair price to offer buyers.)
2.How well-kept is your home? And the follow-up question to that is: how neglected has it been? If your home is a well-loved piece of property that you constantly attend to (fixing a door hinge on one weekend, painting the walls of a room the next weekend), then the odds are great that you can get a very good price for your home when you sell it. If however your home has peeling paint on its external and internal walls, door hinges have come loose so that the doors are askew, and the wood is warped on certain floors and walls, then the odds of getting a great price go down considerably naturally.
3.How long have you lived in your home? And how old is it? This is also crucial because the older your home is, the more wear and tear it has probably undergone. Wear and tear on real estate is one reason why some landlords refuse to admit couples with young children who are known to write on walls and be rather harsh with using furnishings (like banging doors so that doorknobs are wrecked for instance.) The age of your home can be mitigated though by how well kept the house is at the time you put it on the market.
Having taken these factors into consideration, you are now ready to start canvassing market prices for the area you are in. You can examine the daily paper for news about real estate in your location, or go online and look through industry newsletters and maybe even online forums for that information. The more well-informed you are, the better is your chance of coming up with a competitive price that buyers will be interested in later on.
Dan Heskett is a Expert Author for We Buy Ugly Houses
For more information Regarding selling your houses visit We Buy Houses Quick
Article Source: http://EzineArticles.com/?expert=Dan_V_Heskett
You may be doubtful anyway and ask: is my home good enough for other people to buy? Well, the answer to that is: it depends what you are asking for it, for the condition it is in right now. There are realtors who are choosy about the Dallas homes they buy but there are also some who will buy Dallas houses that are in any state or condition (meaning, even the most dilapidated ones can be sold nowadays.) But be reasonable - you cannot expect a dilapidated and ugly home to command the same market price as a well-kept and beautifully-designed home. That would be like saying an ugly and run-down car is sold at the same price as top-of-the-line advanced and new car models. It just isn't realistic.
What would be realistic is if you were to take stock of your Dallas home and look into the following factors that may influence its sale price:
1.What was the original price at which you bought your home, or had it constructed for? This gives you a baseline from which you shouldn't budge when given offers by potential buyers - unless, your home is pretty run-down and has been neglected (in which case, you should factor in the depreciation of the market price so that you come up with a fair price to offer buyers.)
2.How well-kept is your home? And the follow-up question to that is: how neglected has it been? If your home is a well-loved piece of property that you constantly attend to (fixing a door hinge on one weekend, painting the walls of a room the next weekend), then the odds are great that you can get a very good price for your home when you sell it. If however your home has peeling paint on its external and internal walls, door hinges have come loose so that the doors are askew, and the wood is warped on certain floors and walls, then the odds of getting a great price go down considerably naturally.
3.How long have you lived in your home? And how old is it? This is also crucial because the older your home is, the more wear and tear it has probably undergone. Wear and tear on real estate is one reason why some landlords refuse to admit couples with young children who are known to write on walls and be rather harsh with using furnishings (like banging doors so that doorknobs are wrecked for instance.) The age of your home can be mitigated though by how well kept the house is at the time you put it on the market.
Having taken these factors into consideration, you are now ready to start canvassing market prices for the area you are in. You can examine the daily paper for news about real estate in your location, or go online and look through industry newsletters and maybe even online forums for that information. The more well-informed you are, the better is your chance of coming up with a competitive price that buyers will be interested in later on.
Dan Heskett is a Expert Author for We Buy Ugly Houses
For more information Regarding selling your houses visit We Buy Houses Quick
Article Source: http://EzineArticles.com/?expert=Dan_V_Heskett
How Can A Home Buyer Save Money
Finding the right agent.
Some agents offer a rebate to buyers. You will receive a % of the commission real estate agents are paid by the seller upon a home closing. Rules are different from state to state. But if you can find a good agent willing to share his fortune.
Check out Short Sales
Ask for Closing Costs to by paid.
Common Closing Costs for Buyers
The lender must disclose a good faith estimate of all settlement costs. A check to cover your closing costs will probably have to be a cashier's check. The title company or other entity conducting the closing will tell you the required amount for:
* Downpayment.
* Loan origination fees.
* Points, or loan discount fees you pay to receive a lower interest rate.
* Appraisal fee.
* Credit report.
* Private mortgage insurance premium.
* Insurance escrow for homeowners insurance, if being paid as part of the mortgage.
* Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.
* Deed recording fees.
* Title insurance policy premiums.
* Survey.
* Inspection fees-building inspection, termites, etc.
* Notary fees.
* Prorations for your share of costs such as utility bills and property taxes.
A Note About Prorations. Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance. For example, the gas company usually sends a bill each month for the gas used during the previous month. But assume you buy the home on the 6th of the month. You would owe the gas company for only the days from the 6th to the end for the month. The seller would owe for the first 5 days. The bill would be prorated for the number of days in the month, and then each person would be responsible for the days of his or her ownership.
What to Keep From Your Closing
* The Real Estate Settlement Procedures Act (RESPA) statement. This form, sometimes called a HUD 1 statement, itemizes all the costs associated with the closing. You'll need for income tax purposes and when you sell the home.
* The Truth in Lending Statement summarizes the terms of your mortgage loan.
* The mortgage and the note (two pieces of paper) spell out the legal terms of your mortgage obligation and the agreed-upon repayment terms.
* The deed transfers ownership of the property to you.
* Affidavits swearing to various statements by either party. For example, the sellers will often sign an affidavit stating that they have not incurred any liens on the property.
* Riders are amendments to the sales contract that affect your rights. For example, if you buy a condominium, you may have a rider outline the condo association's rules and restrictions.
* Insurance policies provide a record and proof of your coverage.
Some agents offer a rebate to buyers. You will receive a % of the commission real estate agents are paid by the seller upon a home closing. Rules are different from state to state. But if you can find a good agent willing to share his fortune.
Check out Short Sales
Ask for Closing Costs to by paid.
Common Closing Costs for Buyers
The lender must disclose a good faith estimate of all settlement costs. A check to cover your closing costs will probably have to be a cashier's check. The title company or other entity conducting the closing will tell you the required amount for:
* Downpayment.
* Loan origination fees.
* Points, or loan discount fees you pay to receive a lower interest rate.
* Appraisal fee.
* Credit report.
* Private mortgage insurance premium.
* Insurance escrow for homeowners insurance, if being paid as part of the mortgage.
* Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.
* Deed recording fees.
* Title insurance policy premiums.
* Survey.
* Inspection fees-building inspection, termites, etc.
* Notary fees.
* Prorations for your share of costs such as utility bills and property taxes.
A Note About Prorations. Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance. For example, the gas company usually sends a bill each month for the gas used during the previous month. But assume you buy the home on the 6th of the month. You would owe the gas company for only the days from the 6th to the end for the month. The seller would owe for the first 5 days. The bill would be prorated for the number of days in the month, and then each person would be responsible for the days of his or her ownership.
What to Keep From Your Closing
* The Real Estate Settlement Procedures Act (RESPA) statement. This form, sometimes called a HUD 1 statement, itemizes all the costs associated with the closing. You'll need for income tax purposes and when you sell the home.
* The Truth in Lending Statement summarizes the terms of your mortgage loan.
* The mortgage and the note (two pieces of paper) spell out the legal terms of your mortgage obligation and the agreed-upon repayment terms.
* The deed transfers ownership of the property to you.
* Affidavits swearing to various statements by either party. For example, the sellers will often sign an affidavit stating that they have not incurred any liens on the property.
* Riders are amendments to the sales contract that affect your rights. For example, if you buy a condominium, you may have a rider outline the condo association's rules and restrictions.
* Insurance policies provide a record and proof of your coverage.
Article Source: http://EzineArticles.com/?expert=Alex_Greben
Buy Your Retirement Home Now And Beat The Rush!
Scottsdale Arizona aah! Who wouldn't want to retire there?
Beautiful weather, all the golfing you can handle and an up market lifestyle with plenty of culture. There are also endless community education courses and an ever increasing realty market.
You are nodding your head and groaning. The property market is increasing and you can't get your foot on the ladder for another few years. Frustrating!
Well, think again - you can buy a home now and it will be ready for you when you are about to retire. However, you do have to move your thinking slightly sideways to achieve this.
When we think of retirement, we think of the perfect home, unique design, maybe all on one floor, with a great view, perhaps on acreage, or with a double garage or whatever your fancy is.
Yes, well put that picture on hold for a few years, because we are talking about a stepping stone here. But, a stepping stone that should get you an even better retirement home at an even lower cost to you.
Okay, well by now I should have your attention, so let's get down to business.
Realty prices in Scottsdale have more than doubled (almost tripled) between the years 2000 to 2006. However with the baby boomers coming to the golden retirement age of 65 in the year 2011, there will probably be a rush on housing.
The laws of supply and demand suggest that this would add even further to the upward price trend, particularly in the choice retirement area of Scottsdale.
Usually in the housing market, we see a rise or a drop right across the board. So, theoretically, if you bought a modest home for $100,000 in 2000, it will be worth between $200,000 and $300,000 by now.
Houses can still be found in Scottsdale in the $200,000 (or less) price range. If you buy a modest one or two bedroom home now, in a few years it will most likely have increased its value. Guaranteed pensions are taken into account by the bank, so no problem there.
But that is only half the story. If you buy a modest home, you can rent it and let it pay for itself for a few years. You can go through a rental agent for this, this way you do not have to fuss with it, or you can take a holiday in your new property and finalize a rental agreement while you are there.
If the market trend continues to rise in the next few years, you will simply smile and rub your hands together! There is one more advantage to this plan. When you are ready to retire, you can stay in your own Scottsdale home and choose your perfect retirement home at your own leisurely pace.
Written on behalf of Melissa O'Connell. Melissa is familiar with all types of properties in the Scottsdale Arizona Real Estate area and has worked for 15 years as a Scottsdale real estate consultant.
Article Source: http://EzineArticles.com/?expert=Melissa_O'Connell
Beautiful weather, all the golfing you can handle and an up market lifestyle with plenty of culture. There are also endless community education courses and an ever increasing realty market.
You are nodding your head and groaning. The property market is increasing and you can't get your foot on the ladder for another few years. Frustrating!
Well, think again - you can buy a home now and it will be ready for you when you are about to retire. However, you do have to move your thinking slightly sideways to achieve this.
When we think of retirement, we think of the perfect home, unique design, maybe all on one floor, with a great view, perhaps on acreage, or with a double garage or whatever your fancy is.
Yes, well put that picture on hold for a few years, because we are talking about a stepping stone here. But, a stepping stone that should get you an even better retirement home at an even lower cost to you.
Okay, well by now I should have your attention, so let's get down to business.
Realty prices in Scottsdale have more than doubled (almost tripled) between the years 2000 to 2006. However with the baby boomers coming to the golden retirement age of 65 in the year 2011, there will probably be a rush on housing.
The laws of supply and demand suggest that this would add even further to the upward price trend, particularly in the choice retirement area of Scottsdale.
Usually in the housing market, we see a rise or a drop right across the board. So, theoretically, if you bought a modest home for $100,000 in 2000, it will be worth between $200,000 and $300,000 by now.
Houses can still be found in Scottsdale in the $200,000 (or less) price range. If you buy a modest one or two bedroom home now, in a few years it will most likely have increased its value. Guaranteed pensions are taken into account by the bank, so no problem there.
But that is only half the story. If you buy a modest home, you can rent it and let it pay for itself for a few years. You can go through a rental agent for this, this way you do not have to fuss with it, or you can take a holiday in your new property and finalize a rental agreement while you are there.
If the market trend continues to rise in the next few years, you will simply smile and rub your hands together! There is one more advantage to this plan. When you are ready to retire, you can stay in your own Scottsdale home and choose your perfect retirement home at your own leisurely pace.
Written on behalf of Melissa O'Connell. Melissa is familiar with all types of properties in the Scottsdale Arizona Real Estate area and has worked for 15 years as a Scottsdale real estate consultant.
Article Source: http://EzineArticles.com/?expert=Melissa_O'Connell
Now Can Be the Best Time to Buy a New Home
With the housing market crazier than ever, people are wondering if it's the right time to buy a new home. Well, it all depends on what you are looking for and when are you planning on moving into a new home.
Builders are shaving prices to unload inventory. Every time you see an advertisement for a new home or new community opening up, you will see the prices getting lower and lower. What does this mean? Before the market skyrocketed in Arizona 7 years ago, you could find homes for sale as low as $99,000. In today's market you can also find homes that low.
Where are you going to find these homes and builders that are cutting their prices so low? Some still use their local newspaper while most others go to the Internet. With many local newspapers losing the amount of subscribers they have in circulation; advertisers are pulling out. Where are they moving to? I have done some research to find out that most advertising is moving to the Internet. However, Internet advertising is a little different than advertising in the newspaper.
Home builders are advertising with websites that use MLS listings. Many of these websites require you to sign up and then have a Realtor call you about a day later. On these websites you search through homes and communities that meet your needs.
So what about the simple ads that tell you what upgrades builders are offering? Or, what kinds of incentives and deals are these builders willing to offering?
The best time to buy is really anytime. There is always a special offer out in the market every week by one or more home builders. They regularly do seasonal specials such as, Halloween specials or holiday savings.
I have found that you can find these specials at one website that is constantly updating the best deals in the market. There are many online real estate sites but only a select few online really show weekly and monthly specials. On this website I have found newspaper-style ads, showing homes as low as $100,000.
As I said before now is really good time to buy, just go online and find great homes with great prices from one of the many websites in the changing real estate market.
Paul is a principal of NewHomesSection.com. Search New Homes Arizona, Arizona Home Builders and Arizona Real Estate today!
Article Source: http://EzineArticles.com/?expert=Paul_Escobedo
Builders are shaving prices to unload inventory. Every time you see an advertisement for a new home or new community opening up, you will see the prices getting lower and lower. What does this mean? Before the market skyrocketed in Arizona 7 years ago, you could find homes for sale as low as $99,000. In today's market you can also find homes that low.
Where are you going to find these homes and builders that are cutting their prices so low? Some still use their local newspaper while most others go to the Internet. With many local newspapers losing the amount of subscribers they have in circulation; advertisers are pulling out. Where are they moving to? I have done some research to find out that most advertising is moving to the Internet. However, Internet advertising is a little different than advertising in the newspaper.
Home builders are advertising with websites that use MLS listings. Many of these websites require you to sign up and then have a Realtor call you about a day later. On these websites you search through homes and communities that meet your needs.
So what about the simple ads that tell you what upgrades builders are offering? Or, what kinds of incentives and deals are these builders willing to offering?
The best time to buy is really anytime. There is always a special offer out in the market every week by one or more home builders. They regularly do seasonal specials such as, Halloween specials or holiday savings.
I have found that you can find these specials at one website that is constantly updating the best deals in the market. There are many online real estate sites but only a select few online really show weekly and monthly specials. On this website I have found newspaper-style ads, showing homes as low as $100,000.
As I said before now is really good time to buy, just go online and find great homes with great prices from one of the many websites in the changing real estate market.
Paul is a principal of NewHomesSection.com. Search New Homes Arizona, Arizona Home Builders and Arizona Real Estate today!
Article Source: http://EzineArticles.com/?expert=Paul_Escobedo
The Anatomy Of A Home Purchase
The following is a helpful outline of steps involved in a home purchase. It is highly recommended that when purchasing a home, a buyer utilize the services of a professional realtor and a real estate attorney.
The Contract
It is perfectly acceptable to sign the realtor's contract of sale before having it reviewed by an attorney. However, after you sign the contract, it is critical that you immediately deliver it to your attorney. From the date you sign the realtor's contract, there is a three day attorney review period in which changes can be made to the contract by your attorney. The attorney review period commences the next business day. So, if you sign a realtor contract on Saturday or Sunday the attorney review period does not commence until Monday.
The Home Inspection
The buyer is responsible for arranging a home inspection. The buyer should order a general structural home inspection, a radon inspection and a wood boring insect inspection. Often, the realtor will assist the buyer with selecting a home inspector. Most contracts provide that a home inspection must be completed within 10-14 days following completion of attorney review. The buyer should forward a copy of the home inspection report to their attorney. The buyer should then contact their attorney to discuss any issues with the home inspection report so that an appropriate letter can be sent to the seller within the allotted time period. I also strongly recommend that the buyer order an underground oil tank sweep inspection to determine if there are any underground oil tanks on the property. Often, in the contract, the sellers represent that there are no underground oil tanks on the property, when in fact there is a tank that the seller is not aware of. These inspections are for the buyer's protection. It is important to remember that once you close, the seller does not have responsibility for the condition of the home.
Septic and Well
If there is a septic system on the property you should have it inspected. The buyer pays for this inspection. In addition, if there is a well on the property, the parties will have to comply with a newly enacted law the Private Well Testing Act, N.J.S.A. 58:12a-26-37. The law requires that certain tests be performed but it does not specify which party is responsible to pay for those tests. This is left for negotiation. The tests take time to complete so they should be ordered as soon as possible. The test results are valid for one year from sampling, except for coliform results which are valid for six months. At closing both parties will sign a certificate saying that they have received and reviewed the well test results.
Title Search and Survey
The buyer's attorney will order a title search and survey as soon as attorney review is complete. It takes one to two weeks for the title search to be completed. When title is received, the buyer's attorney reviews it for defects and forwards a copy to the buyer's lender. Title insurance costs are regulated by law so that the cost of title insurance does not change from company to company. The survey is similar to a map that shows the placement of the dwelling relative to the perimeter property lines.
The Appraisal
The appraisal is often confused with the survey of the property. The appraisal is ordered by the buyer's lender and sets forth the market value of the property. Generally, the buyer is charged a fee by the lender for the appraisal. The appraisal is usually not available at the time of the closing but must be requested from the lender in writing within 90 days after closing.
The Closing
At the closing, the buyer will need to bring a certified check, bank check or cashier's check. Personal checks cannot generally be used at closing. In addition, you should bring proof that you have obtained homeowner's insurance. If you are married or buying the property with a partner, you must both be in attendance at the closing. Usually a representative from the lender does not attend the closing but instead sends all of the documentation to the buyer's attorney in advance. It is not unusual for the seller to not attend the closing and to send their attorney as their legal representative. A closing takes approximately one to two hours. It is the custom and practice in New Jersey that the closing take place at the office of the buyer's attorney.
Best wishes with the purchase of your new home.
Lauren E. Allu, Esq. is North Jersey's premier attorney. She is sought after by both individuals and companies for all of their legal needs. Lauren E. Allu, Esq. is equally adept at both high profile litigation and headline-making business transactions. She offers straightforward, traditional analysis as well as innovative, custom-tailored strategies. She is a consummate business counselor, responsive service provider and dedicated community leader.
Article Source: http://EzineArticles.com/?expert=Lauren_Allu
The Contract
It is perfectly acceptable to sign the realtor's contract of sale before having it reviewed by an attorney. However, after you sign the contract, it is critical that you immediately deliver it to your attorney. From the date you sign the realtor's contract, there is a three day attorney review period in which changes can be made to the contract by your attorney. The attorney review period commences the next business day. So, if you sign a realtor contract on Saturday or Sunday the attorney review period does not commence until Monday.
The Home Inspection
The buyer is responsible for arranging a home inspection. The buyer should order a general structural home inspection, a radon inspection and a wood boring insect inspection. Often, the realtor will assist the buyer with selecting a home inspector. Most contracts provide that a home inspection must be completed within 10-14 days following completion of attorney review. The buyer should forward a copy of the home inspection report to their attorney. The buyer should then contact their attorney to discuss any issues with the home inspection report so that an appropriate letter can be sent to the seller within the allotted time period. I also strongly recommend that the buyer order an underground oil tank sweep inspection to determine if there are any underground oil tanks on the property. Often, in the contract, the sellers represent that there are no underground oil tanks on the property, when in fact there is a tank that the seller is not aware of. These inspections are for the buyer's protection. It is important to remember that once you close, the seller does not have responsibility for the condition of the home.
Septic and Well
If there is a septic system on the property you should have it inspected. The buyer pays for this inspection. In addition, if there is a well on the property, the parties will have to comply with a newly enacted law the Private Well Testing Act, N.J.S.A. 58:12a-26-37. The law requires that certain tests be performed but it does not specify which party is responsible to pay for those tests. This is left for negotiation. The tests take time to complete so they should be ordered as soon as possible. The test results are valid for one year from sampling, except for coliform results which are valid for six months. At closing both parties will sign a certificate saying that they have received and reviewed the well test results.
Title Search and Survey
The buyer's attorney will order a title search and survey as soon as attorney review is complete. It takes one to two weeks for the title search to be completed. When title is received, the buyer's attorney reviews it for defects and forwards a copy to the buyer's lender. Title insurance costs are regulated by law so that the cost of title insurance does not change from company to company. The survey is similar to a map that shows the placement of the dwelling relative to the perimeter property lines.
The Appraisal
The appraisal is often confused with the survey of the property. The appraisal is ordered by the buyer's lender and sets forth the market value of the property. Generally, the buyer is charged a fee by the lender for the appraisal. The appraisal is usually not available at the time of the closing but must be requested from the lender in writing within 90 days after closing.
The Closing
At the closing, the buyer will need to bring a certified check, bank check or cashier's check. Personal checks cannot generally be used at closing. In addition, you should bring proof that you have obtained homeowner's insurance. If you are married or buying the property with a partner, you must both be in attendance at the closing. Usually a representative from the lender does not attend the closing but instead sends all of the documentation to the buyer's attorney in advance. It is not unusual for the seller to not attend the closing and to send their attorney as their legal representative. A closing takes approximately one to two hours. It is the custom and practice in New Jersey that the closing take place at the office of the buyer's attorney.
Best wishes with the purchase of your new home.
Lauren E. Allu, Esq. is North Jersey's premier attorney. She is sought after by both individuals and companies for all of their legal needs. Lauren E. Allu, Esq. is equally adept at both high profile litigation and headline-making business transactions. She offers straightforward, traditional analysis as well as innovative, custom-tailored strategies. She is a consummate business counselor, responsive service provider and dedicated community leader.
Article Source: http://EzineArticles.com/?expert=Lauren_Allu
Thursday, November 8, 2007
Easing the Transition to Your New Home
Use the right boxes, and pack them carefully
Professional moving companies use only sturdy, reinforced cartons. The boxes you can get at your neighborhood supermarket or liquor store might be free, but they are not nearly as strong or padded, and so can't shield your valuables as well from harm in transit.
Use sheets, blankets, pillows and towels to separate pictures and other fragile objects from each other and the sides of the carton. Pack plates and glass objects vertically, rather than flat and stacked.
Be sure to point out to your mover the boxes in which you've packed fragile items, especially if those items are exceptionally valuable. The mover will advise you whether those valuables need to be repacked in sturdier, more appropriate boxes.
The heavier the item, the smaller the box it should occupy. A good rule of thumb is if you can't lift the carton easily, it's too heavy. Label your boxes, especially the one containing sheets and towels, so you can find everything you need the first night in your new home.
For your family's safety and comfort
Teach your children your new address. Let them practice writing it on packed cartons. You can lighten your load and reduce any storage space you need to rent by hosting a garage or yard sale.
Fill two "OPEN ME FIRST" cartons containing snacks, instant coffee or tea bags, soap, toilet paper, toothpaste and brushes, medicine and toiletry items (make sure caps are tightly secured), flashlight, screwdriver, pliers, can opener, paper plates, cups and utensils, a pan or two, paper towels, and any other items your family can't do without. Ask your van foreman to load one of these boxes, so that it will be unloaded at your new home first. Why the second box? In case the movers are delayed getting to your house on the day of the move.
Keep your pets out of packing boxes and away from all the activity on moving day.
Let all your electrical gadgets return to room temperature before plugging them in.
Since you may need to call old neighbors or businesses from your new home, pack your phone book.
Work hand in hand with your mover
Give the mover's foreman your reach numbers and email addresses so you can stay in contact.
Read the inventory form carefully, and ask the mover to explain anything you don't understand. Make a note of your shipment's registration number, and keep your Bill of Lading handy.
If you're moving long distance, be aware that your property might share a truck with that of several other households. For this reason, your mover might have to warehouse your furniture and belongings for several days. Therefore, ask your mover whether your goods will remain on the truck until delivered. If they have to be stored, ask whether you can check the warehouse for security, organization and cleanliness.
http://www.realtyreview.org/articles/disp.cfm?aid=200&typeid=1&winpop=0&nav=1
Professional moving companies use only sturdy, reinforced cartons. The boxes you can get at your neighborhood supermarket or liquor store might be free, but they are not nearly as strong or padded, and so can't shield your valuables as well from harm in transit.
Use sheets, blankets, pillows and towels to separate pictures and other fragile objects from each other and the sides of the carton. Pack plates and glass objects vertically, rather than flat and stacked.
Be sure to point out to your mover the boxes in which you've packed fragile items, especially if those items are exceptionally valuable. The mover will advise you whether those valuables need to be repacked in sturdier, more appropriate boxes.
The heavier the item, the smaller the box it should occupy. A good rule of thumb is if you can't lift the carton easily, it's too heavy. Label your boxes, especially the one containing sheets and towels, so you can find everything you need the first night in your new home.
For your family's safety and comfort
Teach your children your new address. Let them practice writing it on packed cartons. You can lighten your load and reduce any storage space you need to rent by hosting a garage or yard sale.
Fill two "OPEN ME FIRST" cartons containing snacks, instant coffee or tea bags, soap, toilet paper, toothpaste and brushes, medicine and toiletry items (make sure caps are tightly secured), flashlight, screwdriver, pliers, can opener, paper plates, cups and utensils, a pan or two, paper towels, and any other items your family can't do without. Ask your van foreman to load one of these boxes, so that it will be unloaded at your new home first. Why the second box? In case the movers are delayed getting to your house on the day of the move.
Keep your pets out of packing boxes and away from all the activity on moving day.
Let all your electrical gadgets return to room temperature before plugging them in.
Since you may need to call old neighbors or businesses from your new home, pack your phone book.
Work hand in hand with your mover
Give the mover's foreman your reach numbers and email addresses so you can stay in contact.
Read the inventory form carefully, and ask the mover to explain anything you don't understand. Make a note of your shipment's registration number, and keep your Bill of Lading handy.
If you're moving long distance, be aware that your property might share a truck with that of several other households. For this reason, your mover might have to warehouse your furniture and belongings for several days. Therefore, ask your mover whether your goods will remain on the truck until delivered. If they have to be stored, ask whether you can check the warehouse for security, organization and cleanliness.
http://www.realtyreview.org/articles/disp.cfm?aid=200&typeid=1&winpop=0&nav=1
5 Secrets to Buying the Best House for Your Money
1. Get "Pre-Approved" - Not "Pre-Qualified!"
Do you want to get the best property you can for the least amount of money? Then make sure you are in the strongest negotiating position possible. Price is only one element in the negotiations, and not necessarily the most important one. Often other terms, such as the strength of the buyer or the length of escrow, are critical to a seller.
In years past, I always recommended that buyers get "pre-qualified" by a lender. This means that you spend a few minutes on the phone with a lender who asks you a few questions. Based on the answers, the lender pronounces you "pre-qualified" and issues a certificate that you can show to a seller. Sellers are aware that such certificates are WORTHLESS, and here's why! None of the information has been verified!
Many times unknown problems can come to the surface! Some of the problems I've seen include recorded judgments, alimony payments due, glitches on the credit report due to any number of reasons both accurately and inaccurately, down payments that have not been in the clients' bank account long enough, etc.
So the way to make the strongest offer today is to get "pre-approved". This happens AFTER all information has been checked and verified. You are actually APPROVED for the loan and the only loose end is the appraisal on the property. This process takes anywhere from a few days to a few weeks depending on your situation. It's VERY POWERFUL and a weapon I recommend all my clients have in their negotiating arsenal.
2. Sell Your Property First, Then Buy the House
If you have a house to sell, sell it before selecting a house to buy! Contingency sales aren't nearly as strong as one that comes in with a ready, willing and able buyer. Consider this scenario: You've found the perfect house - now you have to go make an offer to the seller. You want the seller to reduce the price and wait until you sell your house. The seller figures that this is a risky deal, since he might pass up a buyer who DOESN'T have to sell a house while he's waiting for you. So he says OK, he'll do the contingency but it has to be a full price offer! You have now paid more for the house than you could have because of the contingency, and you have to sell your existing house in a hurry! Otherwise you lose the house! So to sell quickly you might take an offer that's lower than if you had more time. The bottom line is that buying before selling might cost you THOUSANDS of dollars.
If you're concerned that there is not a house on the market for you, then go on a window-shopping trip. You can identify possible houses and locations without falling in love with a specific house. If you feel confident after that then put your house on the market.
Another tactic is to make the sale ''subject to seller finding suitable housing''. Adding this phrase to the listing means that WHEN YOU DO FIND A BUYER, you will have some time to find the new place. If you don't find anything to your liking, you don't have to sell your present home.
3. Play the Game of Nines
Before house hunting, make a list of things you want in the new place. Then make a list of the things you don't want. You can use this list as a guide to rate each property that you see. The one with the biggest score wins! This helps avoid confusion and keeps things in perspective when you're comparing dozens of homes.
When house hunting, keep in mind the difference between ''STYLE AND SUBSTANCE''. The SUBSTANCE are things that cannot be changed such as the location, view, size of lot, noise in the area, school district, and floor plan. The STYLE represents easily changed surface finishes like carpet, wallpaper, color, and window coverings. Buy the house with good SUBSTANCE, because the STYLE can always be changed to match your tastes. I always recommend that you imagine each house as if it were vacant.
Consider each house on its underlying merits, not the seller's decorating skills.
4. Don't Be Pushed Into Any House
Your agent should show you everything available that meets your requirements. Don't make a decision on a house until you feel that you've seen enough to pick the best one.
A decade ago, homes were selling quickly, usually a few days after listing. In that kind of market, agents advised their clients to make an offer ON THE SPOT if they liked the house. That was good advice at the time. Today there isn't always this urgency, unless a home is drastically underpriced, and you'll know if it is.
Don't forget to check into the SCHOOL DISTRICTS of the area you're considering. Information is available on every school; such as class sizes, % of students that go on to college, SAT scores, etc. You can get this information from this web site.
5. Stop Calling Ads!
Please note - ads are sometimes created to make the phone ring! Many of the homes have some drawback that's not mentioned in the ad, such as traffic noise, power lines, or litigation in the community. What's not mentioned in the ad is usually more important than what is.
For this reason, I want you to be very careful when reading ads. Remember that the person writing the ad is representing the seller and not you! The most important thing you can do is have someone on your side looking out for your best interests. Your own agent will critique the property with an eye towards how well it meets your needs and will point out any drawbacks you should know about. So whether you decide to work with me or not, pick an agent you feel comfortable with and enlist the services of that agent as a buyer's broker. Then you become a client with all the rights, benefits, and privileges created by this agency relationship, and you're no longer just a shopper. Did you know that many homes are sold WITHOUT A SIGN ever going up or an AD EVER BEING PUT IN THE PAPER? These "great deals" go to those people who are committed to working with one agent. When an agent hears of a great buy, who do you think he's going to call? His client, who he has a legal obligation to work hard for you, or someone who just called on the phone and said "keep your eyes open"? So to get the best buy on a property, I always recommend that you hire your own agent and stick with him or her.
http://www.realtyreview.org/articles/disp.cfm?aid=189&typeid=1&winpop=0&nav=1
Do you want to get the best property you can for the least amount of money? Then make sure you are in the strongest negotiating position possible. Price is only one element in the negotiations, and not necessarily the most important one. Often other terms, such as the strength of the buyer or the length of escrow, are critical to a seller.
In years past, I always recommended that buyers get "pre-qualified" by a lender. This means that you spend a few minutes on the phone with a lender who asks you a few questions. Based on the answers, the lender pronounces you "pre-qualified" and issues a certificate that you can show to a seller. Sellers are aware that such certificates are WORTHLESS, and here's why! None of the information has been verified!
Many times unknown problems can come to the surface! Some of the problems I've seen include recorded judgments, alimony payments due, glitches on the credit report due to any number of reasons both accurately and inaccurately, down payments that have not been in the clients' bank account long enough, etc.
So the way to make the strongest offer today is to get "pre-approved". This happens AFTER all information has been checked and verified. You are actually APPROVED for the loan and the only loose end is the appraisal on the property. This process takes anywhere from a few days to a few weeks depending on your situation. It's VERY POWERFUL and a weapon I recommend all my clients have in their negotiating arsenal.
2. Sell Your Property First, Then Buy the House
If you have a house to sell, sell it before selecting a house to buy! Contingency sales aren't nearly as strong as one that comes in with a ready, willing and able buyer. Consider this scenario: You've found the perfect house - now you have to go make an offer to the seller. You want the seller to reduce the price and wait until you sell your house. The seller figures that this is a risky deal, since he might pass up a buyer who DOESN'T have to sell a house while he's waiting for you. So he says OK, he'll do the contingency but it has to be a full price offer! You have now paid more for the house than you could have because of the contingency, and you have to sell your existing house in a hurry! Otherwise you lose the house! So to sell quickly you might take an offer that's lower than if you had more time. The bottom line is that buying before selling might cost you THOUSANDS of dollars.
If you're concerned that there is not a house on the market for you, then go on a window-shopping trip. You can identify possible houses and locations without falling in love with a specific house. If you feel confident after that then put your house on the market.
Another tactic is to make the sale ''subject to seller finding suitable housing''. Adding this phrase to the listing means that WHEN YOU DO FIND A BUYER, you will have some time to find the new place. If you don't find anything to your liking, you don't have to sell your present home.
3. Play the Game of Nines
Before house hunting, make a list of things you want in the new place. Then make a list of the things you don't want. You can use this list as a guide to rate each property that you see. The one with the biggest score wins! This helps avoid confusion and keeps things in perspective when you're comparing dozens of homes.
When house hunting, keep in mind the difference between ''STYLE AND SUBSTANCE''. The SUBSTANCE are things that cannot be changed such as the location, view, size of lot, noise in the area, school district, and floor plan. The STYLE represents easily changed surface finishes like carpet, wallpaper, color, and window coverings. Buy the house with good SUBSTANCE, because the STYLE can always be changed to match your tastes. I always recommend that you imagine each house as if it were vacant.
Consider each house on its underlying merits, not the seller's decorating skills.
4. Don't Be Pushed Into Any House
Your agent should show you everything available that meets your requirements. Don't make a decision on a house until you feel that you've seen enough to pick the best one.
A decade ago, homes were selling quickly, usually a few days after listing. In that kind of market, agents advised their clients to make an offer ON THE SPOT if they liked the house. That was good advice at the time. Today there isn't always this urgency, unless a home is drastically underpriced, and you'll know if it is.
Don't forget to check into the SCHOOL DISTRICTS of the area you're considering. Information is available on every school; such as class sizes, % of students that go on to college, SAT scores, etc. You can get this information from this web site.
5. Stop Calling Ads!
Please note - ads are sometimes created to make the phone ring! Many of the homes have some drawback that's not mentioned in the ad, such as traffic noise, power lines, or litigation in the community. What's not mentioned in the ad is usually more important than what is.
For this reason, I want you to be very careful when reading ads. Remember that the person writing the ad is representing the seller and not you! The most important thing you can do is have someone on your side looking out for your best interests. Your own agent will critique the property with an eye towards how well it meets your needs and will point out any drawbacks you should know about. So whether you decide to work with me or not, pick an agent you feel comfortable with and enlist the services of that agent as a buyer's broker. Then you become a client with all the rights, benefits, and privileges created by this agency relationship, and you're no longer just a shopper. Did you know that many homes are sold WITHOUT A SIGN ever going up or an AD EVER BEING PUT IN THE PAPER? These "great deals" go to those people who are committed to working with one agent. When an agent hears of a great buy, who do you think he's going to call? His client, who he has a legal obligation to work hard for you, or someone who just called on the phone and said "keep your eyes open"? So to get the best buy on a property, I always recommend that you hire your own agent and stick with him or her.
http://www.realtyreview.org/articles/disp.cfm?aid=189&typeid=1&winpop=0&nav=1
Buying Pre-Construction? Here’s Why A Real Estate Professional Should Represent You
It might not seem necessary to involve a real estate professional in a transaction where a buyer can deal directly with a builder. Think again! A real estate professional representing the buyer’s interests, can guide you along the right path, smooth the rough places and help ensure you make a decision you can live with (and in) for many years. Here’s how:
* Just as a real estate professional calls on experience and knowledge of an area to help buyers locate pre-owned homes in a community, he or she can also direct buyers interested in newly built homes to developments and communities that match client specifications.
* An agent can suggest builders based on their reputation for delivering a high-quality product, responding quickly to issues, and being financially sound.
* An agent may be familiar with how a builder prices his products and where there may be room to negotiate price or upgrades.
* Without agent representation, you are one buyer purchasing only one home. But an agent can significantly impact a builder’s bottom line by providing a steady supply of customers. The agent’s leverage may work in your favor at the negotiating table. [Note: The builder may require your agent to accompany you on your first visit to the site. Check with the builder.]
* When relocating to a new area, agents can be particularly valuable resources. In addition to providing local area information regarding schools, day care or elder care services, public transportation, proposed development, and so on, once construction is under way, an agent can periodically stop by the work site, supply you with progress reports, and photograph or videotape phases of the construction.
* An agent can assist you as you face hundreds of design choices and consider which upgrades could potentially add value to the home when it comes time to sell.
* An agent can accompany you at the site while you okay the plumbing and electrical locations prior to drywalling, as well as on the walk-through or builder orientation.
*By now, you should be convinced of a real estate professional’s value as you search for and purchase a newly built home. Still, here’s one more great reason to work with an agent-the builder pays the agent’s commission. You enjoy individual attention and support at no cost to you. What a great way to start life in a new home!
http://www.realtyreview.org/articles/disp.cfm?aid=67&typeid=1&winpop=0&nav=1
* Just as a real estate professional calls on experience and knowledge of an area to help buyers locate pre-owned homes in a community, he or she can also direct buyers interested in newly built homes to developments and communities that match client specifications.
* An agent can suggest builders based on their reputation for delivering a high-quality product, responding quickly to issues, and being financially sound.
* An agent may be familiar with how a builder prices his products and where there may be room to negotiate price or upgrades.
* Without agent representation, you are one buyer purchasing only one home. But an agent can significantly impact a builder’s bottom line by providing a steady supply of customers. The agent’s leverage may work in your favor at the negotiating table. [Note: The builder may require your agent to accompany you on your first visit to the site. Check with the builder.]
* When relocating to a new area, agents can be particularly valuable resources. In addition to providing local area information regarding schools, day care or elder care services, public transportation, proposed development, and so on, once construction is under way, an agent can periodically stop by the work site, supply you with progress reports, and photograph or videotape phases of the construction.
* An agent can assist you as you face hundreds of design choices and consider which upgrades could potentially add value to the home when it comes time to sell.
* An agent can accompany you at the site while you okay the plumbing and electrical locations prior to drywalling, as well as on the walk-through or builder orientation.
*By now, you should be convinced of a real estate professional’s value as you search for and purchase a newly built home. Still, here’s one more great reason to work with an agent-the builder pays the agent’s commission. You enjoy individual attention and support at no cost to you. What a great way to start life in a new home!
http://www.realtyreview.org/articles/disp.cfm?aid=67&typeid=1&winpop=0&nav=1
Wednesday, November 7, 2007
Using A Buyer's Agent - How To Buy A Home The Right Way
If you're looking to buy a home, you should consider investing in a buyer's agent. After buying my first home, I learned that we needed someone to protect and look out for our interests as a buyer, rather than using a real estate agent who was only interested in only the sellers' needs. Here are some things that you can expect if you enlist in the help of a buyer's agent.
• Lender Selection: Choosing the lender requires you finding the best rates, and a buyer's agent can be helpful in this department, particularly if you're a first-time buyer or unfamiliar with the area. It's wise to get pre-qualified for a loan before you begin searching for your ideal property.
• Assistance Choosing Property: A buyer's agent can help you find the best property in your price range, giving you access to properties not listed for sale, for sale by owner properties, lender owned properties, and foreclosure properties. If you search on your own, you typically can't find these closed properties.
• Negotiation: Putting down an offer and negotiating the price is the most important part of the home buying process. A buyer's agent can help with negotiation strategies, protective clauses in purchase offers, and alternative financing arrangements.
• Pre-Closing and After: Here is where you can receive help with issues that arise during the property evaluation, moving, insurance, and other house improvement and repair issues. The buyer's agent can communicate your needs, and ensure that everything is done properly before the closing day.
If you're looking to buy a home, you should enlist the help of a buyer's agent. If you're relocating, buying a home for the first time, downsizing or upgrading, you should consider looking through the detailed listings of Fayetteville Arkansas real estate, one of the fastest growing areas in the country.
Article Source: http://EzineArticles.com/?expert=Olivia_Hanks
• Lender Selection: Choosing the lender requires you finding the best rates, and a buyer's agent can be helpful in this department, particularly if you're a first-time buyer or unfamiliar with the area. It's wise to get pre-qualified for a loan before you begin searching for your ideal property.
• Assistance Choosing Property: A buyer's agent can help you find the best property in your price range, giving you access to properties not listed for sale, for sale by owner properties, lender owned properties, and foreclosure properties. If you search on your own, you typically can't find these closed properties.
• Negotiation: Putting down an offer and negotiating the price is the most important part of the home buying process. A buyer's agent can help with negotiation strategies, protective clauses in purchase offers, and alternative financing arrangements.
• Pre-Closing and After: Here is where you can receive help with issues that arise during the property evaluation, moving, insurance, and other house improvement and repair issues. The buyer's agent can communicate your needs, and ensure that everything is done properly before the closing day.
If you're looking to buy a home, you should enlist the help of a buyer's agent. If you're relocating, buying a home for the first time, downsizing or upgrading, you should consider looking through the detailed listings of Fayetteville Arkansas real estate, one of the fastest growing areas in the country.
Article Source: http://EzineArticles.com/?expert=Olivia_Hanks
Mortgage Loans 101: The Primary Parts of a Home Mortgage
To understand the home buying process is to understand the mortgage process. So before buying your first home, it pays to brush up on your mortgage knowledge.
Let's start with the basic parts of a mortgage. Understanding these three elements will help you determine your financial comfort zone, because when combined these elements will determine your monthly payment. Also, if you use an online mortgage calculator, these are the three elements they will ask for.
The Primary Parts of a Mortgage Loan:
1. Size of the loan
2. Interest rate on the loan
3. Term (or length) of the loan
Size of the Mortgage Loan
This one is fairly obvious. How much will you borrow? The size of your loan will primarily depend on your budget, your credit, and how much of a down payment you can afford.
Interest Rate
The interest rate is the amount of interest charged on a monthly mortgage payment. It is a percentage of the principal loan amount. To find the current interest rates, you can start by visiting Bankrate.com or Interest.com.
Term / Length of the Loan
Just like there are many types of mortgage loans, there are also a lot of mortgage terms (or lengths). The 30-year fixed-rate mortgage is one of the most common terms. "Fixed rate" means that the interest rate you get upon loan approval is the interest rate you maintain for the life of the loan.
Fixed-rate mortgages also come in the 15-year variety, but you'll generally pay a lower interest rate with the 30-year option.
Variable or adjustable rate mortgages offer shorter initial terms, sometimes as low as three or five years. With these types of loans, you would generally refinance or sell before the initial term expired.
Article Source: http://EzineArticles.com/?expert=Brandon_Cornett
Let's start with the basic parts of a mortgage. Understanding these three elements will help you determine your financial comfort zone, because when combined these elements will determine your monthly payment. Also, if you use an online mortgage calculator, these are the three elements they will ask for.
The Primary Parts of a Mortgage Loan:
1. Size of the loan
2. Interest rate on the loan
3. Term (or length) of the loan
Size of the Mortgage Loan
This one is fairly obvious. How much will you borrow? The size of your loan will primarily depend on your budget, your credit, and how much of a down payment you can afford.
Interest Rate
The interest rate is the amount of interest charged on a monthly mortgage payment. It is a percentage of the principal loan amount. To find the current interest rates, you can start by visiting Bankrate.com or Interest.com.
Term / Length of the Loan
Just like there are many types of mortgage loans, there are also a lot of mortgage terms (or lengths). The 30-year fixed-rate mortgage is one of the most common terms. "Fixed rate" means that the interest rate you get upon loan approval is the interest rate you maintain for the life of the loan.
Fixed-rate mortgages also come in the 15-year variety, but you'll generally pay a lower interest rate with the 30-year option.
Variable or adjustable rate mortgages offer shorter initial terms, sometimes as low as three or five years. With these types of loans, you would generally refinance or sell before the initial term expired.
Article Source: http://EzineArticles.com/?expert=Brandon_Cornett
Austin Real Estate: Buying a Home in the 'Live Music Capital' of America
Thinking of buying real estate in Austin, Texas? If so, sooner would be better than later. Prices in Austin continue to rise, and there’s no sign that they will level off any time soon.
Why is Austin real estate becoming such a hot commodity? Fist, consider the city itself:
Austin, Texas is a great place to buy a home. The weather is relatively mild. There’s plenty of history and culture. A series of highway-improvement projects will soon make commuting a breeze. And, of course, there’s the music -- Austin has been dubbed the "Live Music Capital" of America.
But if you’re thinking of moving to Austin to buy a home -- or if you currently rent in Austin and wish to purchase your first home -- you should move quickly. Prices are rising, and they will likely continue to rise in the foreseeable future.
You can blame it on supply and demand. Sure, a lot of new residential areas are being developed. But the land prices are going up, which means the houses that sit on the land will also increase in price.
On top of that, the influx of new Austinites is outpacing the supply of houses. In a recent article in the Austin Business Journal, John Doyle, director of land acquisitions for KB Homes in Austin, cited the influx factor as a key reason for the steady increase in land prices. Doyle also noted the high volume of Californians flocking to the Austin area.
To find out why so many Californians are moving to Austin, just do the math. Homes are much more affordable in Austin than in most parts of California. A $200,000 home in Round Rock (a suburban city north of Austin) might go for as much as $700,000 in San Diego.
Add in the fact that the climates and cultures are somewhat similar, and you’ve got the makings for a continued immigration of former Californians. The result? Continued increases in land and housing prices.
And that, of course, affects anyone thinking of moving to Austin -- whether they’re coming from San Diego, California or Fargo, North Dakota.
Article Source: http://EzineArticles.com/?expert=Brandon_Cornett
Why is Austin real estate becoming such a hot commodity? Fist, consider the city itself:
Austin, Texas is a great place to buy a home. The weather is relatively mild. There’s plenty of history and culture. A series of highway-improvement projects will soon make commuting a breeze. And, of course, there’s the music -- Austin has been dubbed the "Live Music Capital" of America.
But if you’re thinking of moving to Austin to buy a home -- or if you currently rent in Austin and wish to purchase your first home -- you should move quickly. Prices are rising, and they will likely continue to rise in the foreseeable future.
You can blame it on supply and demand. Sure, a lot of new residential areas are being developed. But the land prices are going up, which means the houses that sit on the land will also increase in price.
On top of that, the influx of new Austinites is outpacing the supply of houses. In a recent article in the Austin Business Journal, John Doyle, director of land acquisitions for KB Homes in Austin, cited the influx factor as a key reason for the steady increase in land prices. Doyle also noted the high volume of Californians flocking to the Austin area.
To find out why so many Californians are moving to Austin, just do the math. Homes are much more affordable in Austin than in most parts of California. A $200,000 home in Round Rock (a suburban city north of Austin) might go for as much as $700,000 in San Diego.
Add in the fact that the climates and cultures are somewhat similar, and you’ve got the makings for a continued immigration of former Californians. The result? Continued increases in land and housing prices.
And that, of course, affects anyone thinking of moving to Austin -- whether they’re coming from San Diego, California or Fargo, North Dakota.
Article Source: http://EzineArticles.com/?expert=Brandon_Cornett
First Home Buyer Mortgages
Buying a home is not an easy task, and it can be daunting at times requiring a lot of effort. You’ll have to do extensive research and planning. You will also need help from experts to get the best deal and the home you’ve been dreaming of for years. Being a first-time homebuyer, it is advisable for you to know the basic aspects involved in buying real estate. If you’re planning to own a home but don’t have enough funds, first homebuyer mortgages may help you.
Nowadays, it is common to buy homes through mortgages. With this process, you don’t have to pay the whole value of your dream home right away. There are lots of consulting firms and lending institutions that offer help in securing your first home. You have to be careful in choosing someone you can trust, because you are spending a large sum of money. Better to get through tiresome processes and succeed in the end
When you buy a home for the first time through a mortgage, you must learn all the basics and gather as much information as you need for a safe transaction. Since it’s your first time, you have to orient yourself to all the traditions and customs of buying property. Don’t rely on anyone’s advice. Instead, visit government offices that can give you advice on buying property.
Get used to the basics of first home buying. Employ the help of any qualified real estate agent and have discuss the pros and cons of obtaining a certain property that you have in mind. Make sure that the person you’re talking to is reliable and is from a reputable office or consulting firm. You may also opt for a bank officer who specializes in loans and mortgages, and a mortgage broker can also be a big help.
Ask questions. If you have thoughts and doubts about first homebuyer mortgages, you must ask questions.
Do a lot of research. Both online research and printed material about mortgages will help you better understand the terms and coverage of first homebuyer mortgages.
First Home Mortgage provides detailed information on First Home Mortgages, First Home Buyer Mortgages, First Home Equity Mortgages, Different Types of First Home Mortgages and more. First Home Mortgage is affiliated with First Residential Mortgage.
Article Source: http://EzineArticles.com/?expert=Seth_Miller
Nowadays, it is common to buy homes through mortgages. With this process, you don’t have to pay the whole value of your dream home right away. There are lots of consulting firms and lending institutions that offer help in securing your first home. You have to be careful in choosing someone you can trust, because you are spending a large sum of money. Better to get through tiresome processes and succeed in the end
When you buy a home for the first time through a mortgage, you must learn all the basics and gather as much information as you need for a safe transaction. Since it’s your first time, you have to orient yourself to all the traditions and customs of buying property. Don’t rely on anyone’s advice. Instead, visit government offices that can give you advice on buying property.
Get used to the basics of first home buying. Employ the help of any qualified real estate agent and have discuss the pros and cons of obtaining a certain property that you have in mind. Make sure that the person you’re talking to is reliable and is from a reputable office or consulting firm. You may also opt for a bank officer who specializes in loans and mortgages, and a mortgage broker can also be a big help.
Ask questions. If you have thoughts and doubts about first homebuyer mortgages, you must ask questions.
Do a lot of research. Both online research and printed material about mortgages will help you better understand the terms and coverage of first homebuyer mortgages.
First Home Mortgage provides detailed information on First Home Mortgages, First Home Buyer Mortgages, First Home Equity Mortgages, Different Types of First Home Mortgages and more. First Home Mortgage is affiliated with First Residential Mortgage.
Article Source: http://EzineArticles.com/?expert=Seth_Miller
Tuesday, November 6, 2007
5 Tips For A Successful Home Buying Seminar
One of the very best ways to bring in qualified real estate leads – whether you’re a mortgage broker, real estate agent or investor – is a home buying seminar. There is on small challenge with putting on a home buying seminar, however! Most people that are in real estate are not in the business of promoting seminars, home buying seminars in particular.
The good news is that with a little planning and marketing, you can hold successful home buying seminars month after month. And the even better news is that most of the country is right in the midst of a “buyer’s” market, so what better time to hold a home buying seminar?
There are 5 tips that will help ensure a successful home buying seminar.
Tip 1 - Target your market! If you’ve heard it once, you’ve heard a thousand times when it comes to real estate. You have to pick your target market! This takes some planning on your part to really decide who you want to attract to your home buying seminar. It’s easy to think to yourself that anyone looking for a home is a likely candidate for a home buying seminar. But… that’s not necessarily true! There are going to be certain “types” of buyers that are most likely to attend your event. A few examples of likely candidates for your home buying seminar are first time home buyers, people in a specific city or zip code, community personnel (doctors, firefighters, nurses, teachers, etc.), etc. You’ll want to make sure that the people you market to can afford the homes you want to sell!
Your target audience is not likely going to be second home buyers or vacationers unless you’re in the timeshare business!
Tip 2 – Select a location to hold your home buying seminar Where are you going to hold your home buying seminar? There are many options and it may depend on who you are attracting to your event. For instance, if you are targeting a certain zip code, consider holding your home buying seminar at the local library. If you’re targeting first time homebuyers throughout the county, consider a centrally located hotel or auditorium. Be conscious of the costs and be sure to know the rules of negotiating with hotels BEFORE you get into any contracts.
Tip 3 – Select the right day and time for your home buying seminar Different days will bring different numbers – and types – of attendees! If you can get the facility for several time slots, consider having an afternoon session and early evening session. This will allow people that work day jobs to attend the home buying seminar after work and it will also allow people that have night jobs or evening obligations to attend your seminar. You may even consider having a “lunch and learn” sponsored by vendors like title companies, home inspection companies, insurance companies, etc.
Tip 4 – Marketing your home buying seminar Marketing is key for any seminar, but even more so for a home buying seminar. You may consider buying a list from a list broker, posting “bandit” signs throughout the community, hanging flyers in local stores, sending out a postcard sequence, a classified ad in the homes section of the newspaper, online advertising, press releases to the media, little league fields, etc. This comes back to your target market! Where do they go and what do they do?
Tip 5 – Present valuable information and provide follow up support The hard part’s over! You’ve got your attendees in the door and now it’s time to present the meat and potatoes of your home buying seminar. If you’re not comfortable with the content, consider inviting professionals to teach the content and you simply serve as the emcee and hold the event together. Things that are important to people attending a home buying seminar are: financing programs, tax benefits of home ownership, what to look for in a home inspection, and how to protect themselves at closing. Here’s a sample schedule for a 90 minute home buying seminar: One of the very best ways to bring in qualified real estate leads – whether you’re a mortgage broker, real estate agent or investor – is a home buying seminar. There is on small challenge with putting on a home buying seminar, however! Most people that are in real estate are not in the business of promoting seminars, home buying seminars in particular.
The good news is that with a little planning and marketing, you can hold successful home buying seminars month after month. And the even better news is that most of the country is right in the midst of a “buyer’s” market, so what better time to hold a home buying seminar?
There are 5 tips that will help ensure a successful home buying seminar.
Tip 1 - Target your market! If you’ve heard it once, you’ve heard a thousand times when it comes to real estate. You have to pick your target market! This takes some planning on your part to really decide who you want to attract to your home buying seminar. It’s easy to think to yourself that anyone looking for a home is a likely candidate for a home buying seminar. But… that’s not necessarily true! There are going to be certain “types” of buyers that are most likely to attend your event. A few examples of likely candidates for your home buying seminar are first time home buyers, people in a specific city or zip code, community personnel (doctors, firefighters, nurses, teachers, etc.), etc. You’ll want to make sure that the people you market to can afford the homes you want to sell!
Your target audience is not likely going to be second home buyers or vacationers unless you’re in the timeshare business!
Tip 2 – Select a location to hold your home buying seminar Where are you going to hold your home buying seminar? There are many options and it may depend on who you are attracting to your event. For instance, if you are targeting a certain zip code, consider holding your home buying seminar at the local library. If you’re targeting first time homebuyers throughout the county, consider a centrally located hotel or auditorium. Be conscious of the costs and be sure to know the rules of negotiating with hotels BEFORE you get into any contracts.
Tip 3 – Select the right day and time for your home buying seminar Different days will bring different numbers – and types – of attendees! If you can get the facility for several time slots, consider having an afternoon session and early evening session. This will allow people that work day jobs to attend the home buying seminar after work and it will also allow people that have night jobs or evening obligations to attend your seminar. You may even consider having a “lunch and learn” sponsored by vendors like title companies, home inspection companies, insurance companies, etc.
Tip 4 – Marketing your home buying seminar Marketing is key for any seminar, but even more so for a home buying seminar. You may consider buying a list from a list broker, posting “bandit” signs throughout the community, hanging flyers in local stores, sending out a postcard sequence, a classified ad in the homes section of the newspaper, online advertising, press releases to the media, little league fields, etc. This comes back to your target market! Where do they go and what do they do?
Tip 5 – Present valuable information and provide follow up support The hard part’s over! You’ve got your attendees in the door and now it’s time to present the meat and potatoes of your home buying seminar. If you’re not comfortable with the content, consider inviting professionals to teach the content and you simply serve as the emcee and hold the event together. Things that are important to people attending a home buying seminar are: financing programs, tax benefits of home ownership, what to look for in a home inspection, and how to protect themselves at closing. Here’s a sample schedule for a 90 minute home buying seminar:
Article Source: http://EzineArticles.com/?expert=Heather_Seitz
The good news is that with a little planning and marketing, you can hold successful home buying seminars month after month. And the even better news is that most of the country is right in the midst of a “buyer’s” market, so what better time to hold a home buying seminar?
There are 5 tips that will help ensure a successful home buying seminar.
Tip 1 - Target your market! If you’ve heard it once, you’ve heard a thousand times when it comes to real estate. You have to pick your target market! This takes some planning on your part to really decide who you want to attract to your home buying seminar. It’s easy to think to yourself that anyone looking for a home is a likely candidate for a home buying seminar. But… that’s not necessarily true! There are going to be certain “types” of buyers that are most likely to attend your event. A few examples of likely candidates for your home buying seminar are first time home buyers, people in a specific city or zip code, community personnel (doctors, firefighters, nurses, teachers, etc.), etc. You’ll want to make sure that the people you market to can afford the homes you want to sell!
Your target audience is not likely going to be second home buyers or vacationers unless you’re in the timeshare business!
Tip 2 – Select a location to hold your home buying seminar Where are you going to hold your home buying seminar? There are many options and it may depend on who you are attracting to your event. For instance, if you are targeting a certain zip code, consider holding your home buying seminar at the local library. If you’re targeting first time homebuyers throughout the county, consider a centrally located hotel or auditorium. Be conscious of the costs and be sure to know the rules of negotiating with hotels BEFORE you get into any contracts.
Tip 3 – Select the right day and time for your home buying seminar Different days will bring different numbers – and types – of attendees! If you can get the facility for several time slots, consider having an afternoon session and early evening session. This will allow people that work day jobs to attend the home buying seminar after work and it will also allow people that have night jobs or evening obligations to attend your seminar. You may even consider having a “lunch and learn” sponsored by vendors like title companies, home inspection companies, insurance companies, etc.
Tip 4 – Marketing your home buying seminar Marketing is key for any seminar, but even more so for a home buying seminar. You may consider buying a list from a list broker, posting “bandit” signs throughout the community, hanging flyers in local stores, sending out a postcard sequence, a classified ad in the homes section of the newspaper, online advertising, press releases to the media, little league fields, etc. This comes back to your target market! Where do they go and what do they do?
Tip 5 – Present valuable information and provide follow up support The hard part’s over! You’ve got your attendees in the door and now it’s time to present the meat and potatoes of your home buying seminar. If you’re not comfortable with the content, consider inviting professionals to teach the content and you simply serve as the emcee and hold the event together. Things that are important to people attending a home buying seminar are: financing programs, tax benefits of home ownership, what to look for in a home inspection, and how to protect themselves at closing. Here’s a sample schedule for a 90 minute home buying seminar: One of the very best ways to bring in qualified real estate leads – whether you’re a mortgage broker, real estate agent or investor – is a home buying seminar. There is on small challenge with putting on a home buying seminar, however! Most people that are in real estate are not in the business of promoting seminars, home buying seminars in particular.
The good news is that with a little planning and marketing, you can hold successful home buying seminars month after month. And the even better news is that most of the country is right in the midst of a “buyer’s” market, so what better time to hold a home buying seminar?
There are 5 tips that will help ensure a successful home buying seminar.
Tip 1 - Target your market! If you’ve heard it once, you’ve heard a thousand times when it comes to real estate. You have to pick your target market! This takes some planning on your part to really decide who you want to attract to your home buying seminar. It’s easy to think to yourself that anyone looking for a home is a likely candidate for a home buying seminar. But… that’s not necessarily true! There are going to be certain “types” of buyers that are most likely to attend your event. A few examples of likely candidates for your home buying seminar are first time home buyers, people in a specific city or zip code, community personnel (doctors, firefighters, nurses, teachers, etc.), etc. You’ll want to make sure that the people you market to can afford the homes you want to sell!
Your target audience is not likely going to be second home buyers or vacationers unless you’re in the timeshare business!
Tip 2 – Select a location to hold your home buying seminar Where are you going to hold your home buying seminar? There are many options and it may depend on who you are attracting to your event. For instance, if you are targeting a certain zip code, consider holding your home buying seminar at the local library. If you’re targeting first time homebuyers throughout the county, consider a centrally located hotel or auditorium. Be conscious of the costs and be sure to know the rules of negotiating with hotels BEFORE you get into any contracts.
Tip 3 – Select the right day and time for your home buying seminar Different days will bring different numbers – and types – of attendees! If you can get the facility for several time slots, consider having an afternoon session and early evening session. This will allow people that work day jobs to attend the home buying seminar after work and it will also allow people that have night jobs or evening obligations to attend your seminar. You may even consider having a “lunch and learn” sponsored by vendors like title companies, home inspection companies, insurance companies, etc.
Tip 4 – Marketing your home buying seminar Marketing is key for any seminar, but even more so for a home buying seminar. You may consider buying a list from a list broker, posting “bandit” signs throughout the community, hanging flyers in local stores, sending out a postcard sequence, a classified ad in the homes section of the newspaper, online advertising, press releases to the media, little league fields, etc. This comes back to your target market! Where do they go and what do they do?
Tip 5 – Present valuable information and provide follow up support The hard part’s over! You’ve got your attendees in the door and now it’s time to present the meat and potatoes of your home buying seminar. If you’re not comfortable with the content, consider inviting professionals to teach the content and you simply serve as the emcee and hold the event together. Things that are important to people attending a home buying seminar are: financing programs, tax benefits of home ownership, what to look for in a home inspection, and how to protect themselves at closing. Here’s a sample schedule for a 90 minute home buying seminar:
Article Source: http://EzineArticles.com/?expert=Heather_Seitz
Home Buying Wisdom - Avoid the Bad Credit Blues
Applying for a mortgage loan only to find out you have bad credit is a surefire recipe for the home buying blues. After all, bad credit will reduce the chance of getting a good interest rate, or maybe even prevent you from getting a loan altogether. What could be worse than that?
But it doesn't have to be this way. You can avoid the home buying blues by knowing your credit situation, and (if necessary) working to improve your credit score ... before trying to buy a home.
The thing to realize is that credit score improvements take time. It doesn't happen overnight, not by any means. So as soon as possible, you should (A) find out what your credit score is, and (B) work on improving it if necessary.
Here are the steps needed to do just that:
1. Request your credit report.
2. Check your credit report for errors.
3. Request your credit score.
4. Find out where you stand.
5. Work to improve your credit score, if necessary.
1. Request your credit report.
The first step in this process it to get copies of your credit report. I say "copies," plural, because you'll want to request a copy of your credit report from Experian, Equifax and TransUnion, the three companies that maintain credit reports. You can request all three credit reports at once by visiting www.AnnualCreditReport.com. This website is maintained by all three credit-reporting agencies.
2. Check your credit report for errors.
That last thing you want is an error in your credit report that actually lowers your credit score. So review your credit reports closely for errors. Check the name and other admin info. Also be on the lookout for any loans or other lines of credit that aren't yours, as this could be a sign of credit fraud. If you find an error, go to the website of the company with the erroneous report and submit a request to have it corrected.
3. Request your credit score.
When you order your credit reports (previous step), they won't come with a score. You have to request that separately, and the best place to do that is through www.MyFICO.com. This website also has a lot of helpful information about credit scores, credit reports and related topics.
4. Find out where you stand.
Now that you have your credit score, you can determine where you fall on the credit scale -- great, good, average, below average, or bad. Credit scores range from 300 - 850, with 850 being the best and 300 being the worst. If your score is between 800 and 850, count your lucky stars! The average credit score in the U.S. is around 723. So anything higher than that, and you're also in good shape. Lower than 720, and you may want to work on improving your credit score. You won't necessarily have trouble obtaining a loan with a score of 650 - 720, but you won't get the best rate either. If your score is at or below 600, you have some work to do! That's our next item.
5. Work to improve your credit score.
The better your credit score, the better your chances of getting a good interest rate on your mortgage loan. With a lower score, you will have to pay more interest, which translates to a larger monthly payment each month. Nobody wants that!
So if you've determined that you're on the "south" end of the credit score, you'll want to work on improving your credit. Here are some tips to help you do that:
* Pay down your bills. By paying down credit card balances and other signs of debt, you are improving your debt-to-income ratio. Mortgage lenders prefer your total debt to be no more than 20% of your net monthly income. If your overall debt is more than 20% of your income, try to pay it down as quickly as possible.
* Pay all your bills on time. Paying bills on time will raise your credit score. But the opposite is also true -- a history of late payments will hurt your score.
* Pay minimum balances, at least. When you get a credit card bill, always pay at least the minimum amount that's due. Pay more than the minimum, if you can afford to. This will reduce your balance quicker and give you a more favorable debt-to-income ratio.
* Don't apply for too many loans. When you apply for credit too often, you send the signal that you can't manage your finances properly.
Taking charge of your credit will make for a more enjoyable home buying experience. When you have good credit, you can qualify for a mortgage loan more easily, and you'll likely have a better interest rate as well. But the opposite is also true -- bad credit makes the whole process more difficult, and often results in the home buying blues.
So check your credit score, find out where you stand, and proceed accordingly to improve your credit score. Don't delay ... start today!
* You may republish this article online if you retain the author's byline and the active hyperlinks below. Copyright 2007, Brandon Cornett.Applying for a mortgage loan only to find out you have bad credit is a surefire recipe for the home buying blues. After all, bad credit will reduce the chance of getting a good interest rate, or maybe even prevent you from getting a loan altogether. What could be worse than that?
But it doesn't have to be this way. You can avoid the home buying blues by knowing your credit situation, and (if necessary) working to improve your credit score ... before trying to buy a home.
The thing to realize is that credit score improvements take time. It doesn't happen overnight, not by any means. So as soon as possible, you should (A) find out what your credit score is, and (B) work on improving it if necessary.
Here are the steps needed to do just that:
1. Request your credit report.
2. Check your credit report for errors.
3. Request your credit score.
4. Find out where you stand.
5. Work to improve your credit score, if necessary.
1. Request your credit report.
The first step in this process it to get copies of your credit report. I say "copies," plural, because you'll want to request a copy of your credit report from Experian, Equifax and TransUnion, the three companies that maintain credit reports. You can request all three credit reports at once by visiting www.AnnualCreditReport.com. This website is maintained by all three credit-reporting agencies.
2. Check your credit report for errors.
That last thing you want is an error in your credit report that actually lowers your credit score. So review your credit reports closely for errors. Check the name and other admin info. Also be on the lookout for any loans or other lines of credit that aren't yours, as this could be a sign of credit fraud. If you find an error, go to the website of the company with the erroneous report and submit a request to have it corrected.
3. Request your credit score.
When you order your credit reports (previous step), they won't come with a score. You have to request that separately, and the best place to do that is through www.MyFICO.com. This website also has a lot of helpful information about credit scores, credit reports and related topics.
4. Find out where you stand.
Now that you have your credit score, you can determine where you fall on the credit scale -- great, good, average, below average, or bad. Credit scores range from 300 - 850, with 850 being the best and 300 being the worst. If your score is between 800 and 850, count your lucky stars! The average credit score in the U.S. is around 723. So anything higher than that, and you're also in good shape. Lower than 720, and you may want to work on improving your credit score. You won't necessarily have trouble obtaining a loan with a score of 650 - 720, but you won't get the best rate either. If your score is at or below 600, you have some work to do! That's our next item.
5. Work to improve your credit score.
The better your credit score, the better your chances of getting a good interest rate on your mortgage loan. With a lower score, you will have to pay more interest, which translates to a larger monthly payment each month. Nobody wants that!
So if you've determined that you're on the "south" end of the credit score, you'll want to work on improving your credit. Here are some tips to help you do that:
* Pay down your bills. By paying down credit card balances and other signs of debt, you are improving your debt-to-income ratio. Mortgage lenders prefer your total debt to be no more than 20% of your net monthly income. If your overall debt is more than 20% of your income, try to pay it down as quickly as possible.
* Pay all your bills on time. Paying bills on time will raise your credit score. But the opposite is also true -- a history of late payments will hurt your score.
* Pay minimum balances, at least. When you get a credit card bill, always pay at least the minimum amount that's due. Pay more than the minimum, if you can afford to. This will reduce your balance quicker and give you a more favorable debt-to-income ratio.
* Don't apply for too many loans. When you apply for credit too often, you send the signal that you can't manage your finances properly.
Taking charge of your credit will make for a more enjoyable home buying experience. When you have good credit, you can qualify for a mortgage loan more easily, and you'll likely have a better interest rate as well. But the opposite is also true -- bad credit makes the whole process more difficult, and often results in the home buying blues.
So check your credit score, find out where you stand, and proceed accordingly to improve your credit score. Don't delay ... start today!
* You may republish this article online if you retain the author's byline and the active hyperlinks below. Copyright 2007, Brandon Cornett.
Article Source: http://EzineArticles.com/?expert=Brandon_Cornett
But it doesn't have to be this way. You can avoid the home buying blues by knowing your credit situation, and (if necessary) working to improve your credit score ... before trying to buy a home.
The thing to realize is that credit score improvements take time. It doesn't happen overnight, not by any means. So as soon as possible, you should (A) find out what your credit score is, and (B) work on improving it if necessary.
Here are the steps needed to do just that:
1. Request your credit report.
2. Check your credit report for errors.
3. Request your credit score.
4. Find out where you stand.
5. Work to improve your credit score, if necessary.
1. Request your credit report.
The first step in this process it to get copies of your credit report. I say "copies," plural, because you'll want to request a copy of your credit report from Experian, Equifax and TransUnion, the three companies that maintain credit reports. You can request all three credit reports at once by visiting www.AnnualCreditReport.com. This website is maintained by all three credit-reporting agencies.
2. Check your credit report for errors.
That last thing you want is an error in your credit report that actually lowers your credit score. So review your credit reports closely for errors. Check the name and other admin info. Also be on the lookout for any loans or other lines of credit that aren't yours, as this could be a sign of credit fraud. If you find an error, go to the website of the company with the erroneous report and submit a request to have it corrected.
3. Request your credit score.
When you order your credit reports (previous step), they won't come with a score. You have to request that separately, and the best place to do that is through www.MyFICO.com. This website also has a lot of helpful information about credit scores, credit reports and related topics.
4. Find out where you stand.
Now that you have your credit score, you can determine where you fall on the credit scale -- great, good, average, below average, or bad. Credit scores range from 300 - 850, with 850 being the best and 300 being the worst. If your score is between 800 and 850, count your lucky stars! The average credit score in the U.S. is around 723. So anything higher than that, and you're also in good shape. Lower than 720, and you may want to work on improving your credit score. You won't necessarily have trouble obtaining a loan with a score of 650 - 720, but you won't get the best rate either. If your score is at or below 600, you have some work to do! That's our next item.
5. Work to improve your credit score.
The better your credit score, the better your chances of getting a good interest rate on your mortgage loan. With a lower score, you will have to pay more interest, which translates to a larger monthly payment each month. Nobody wants that!
So if you've determined that you're on the "south" end of the credit score, you'll want to work on improving your credit. Here are some tips to help you do that:
* Pay down your bills. By paying down credit card balances and other signs of debt, you are improving your debt-to-income ratio. Mortgage lenders prefer your total debt to be no more than 20% of your net monthly income. If your overall debt is more than 20% of your income, try to pay it down as quickly as possible.
* Pay all your bills on time. Paying bills on time will raise your credit score. But the opposite is also true -- a history of late payments will hurt your score.
* Pay minimum balances, at least. When you get a credit card bill, always pay at least the minimum amount that's due. Pay more than the minimum, if you can afford to. This will reduce your balance quicker and give you a more favorable debt-to-income ratio.
* Don't apply for too many loans. When you apply for credit too often, you send the signal that you can't manage your finances properly.
Taking charge of your credit will make for a more enjoyable home buying experience. When you have good credit, you can qualify for a mortgage loan more easily, and you'll likely have a better interest rate as well. But the opposite is also true -- bad credit makes the whole process more difficult, and often results in the home buying blues.
So check your credit score, find out where you stand, and proceed accordingly to improve your credit score. Don't delay ... start today!
* You may republish this article online if you retain the author's byline and the active hyperlinks below. Copyright 2007, Brandon Cornett.Applying for a mortgage loan only to find out you have bad credit is a surefire recipe for the home buying blues. After all, bad credit will reduce the chance of getting a good interest rate, or maybe even prevent you from getting a loan altogether. What could be worse than that?
But it doesn't have to be this way. You can avoid the home buying blues by knowing your credit situation, and (if necessary) working to improve your credit score ... before trying to buy a home.
The thing to realize is that credit score improvements take time. It doesn't happen overnight, not by any means. So as soon as possible, you should (A) find out what your credit score is, and (B) work on improving it if necessary.
Here are the steps needed to do just that:
1. Request your credit report.
2. Check your credit report for errors.
3. Request your credit score.
4. Find out where you stand.
5. Work to improve your credit score, if necessary.
1. Request your credit report.
The first step in this process it to get copies of your credit report. I say "copies," plural, because you'll want to request a copy of your credit report from Experian, Equifax and TransUnion, the three companies that maintain credit reports. You can request all three credit reports at once by visiting www.AnnualCreditReport.com. This website is maintained by all three credit-reporting agencies.
2. Check your credit report for errors.
That last thing you want is an error in your credit report that actually lowers your credit score. So review your credit reports closely for errors. Check the name and other admin info. Also be on the lookout for any loans or other lines of credit that aren't yours, as this could be a sign of credit fraud. If you find an error, go to the website of the company with the erroneous report and submit a request to have it corrected.
3. Request your credit score.
When you order your credit reports (previous step), they won't come with a score. You have to request that separately, and the best place to do that is through www.MyFICO.com. This website also has a lot of helpful information about credit scores, credit reports and related topics.
4. Find out where you stand.
Now that you have your credit score, you can determine where you fall on the credit scale -- great, good, average, below average, or bad. Credit scores range from 300 - 850, with 850 being the best and 300 being the worst. If your score is between 800 and 850, count your lucky stars! The average credit score in the U.S. is around 723. So anything higher than that, and you're also in good shape. Lower than 720, and you may want to work on improving your credit score. You won't necessarily have trouble obtaining a loan with a score of 650 - 720, but you won't get the best rate either. If your score is at or below 600, you have some work to do! That's our next item.
5. Work to improve your credit score.
The better your credit score, the better your chances of getting a good interest rate on your mortgage loan. With a lower score, you will have to pay more interest, which translates to a larger monthly payment each month. Nobody wants that!
So if you've determined that you're on the "south" end of the credit score, you'll want to work on improving your credit. Here are some tips to help you do that:
* Pay down your bills. By paying down credit card balances and other signs of debt, you are improving your debt-to-income ratio. Mortgage lenders prefer your total debt to be no more than 20% of your net monthly income. If your overall debt is more than 20% of your income, try to pay it down as quickly as possible.
* Pay all your bills on time. Paying bills on time will raise your credit score. But the opposite is also true -- a history of late payments will hurt your score.
* Pay minimum balances, at least. When you get a credit card bill, always pay at least the minimum amount that's due. Pay more than the minimum, if you can afford to. This will reduce your balance quicker and give you a more favorable debt-to-income ratio.
* Don't apply for too many loans. When you apply for credit too often, you send the signal that you can't manage your finances properly.
Taking charge of your credit will make for a more enjoyable home buying experience. When you have good credit, you can qualify for a mortgage loan more easily, and you'll likely have a better interest rate as well. But the opposite is also true -- bad credit makes the whole process more difficult, and often results in the home buying blues.
So check your credit score, find out where you stand, and proceed accordingly to improve your credit score. Don't delay ... start today!
* You may republish this article online if you retain the author's byline and the active hyperlinks below. Copyright 2007, Brandon Cornett.
Article Source: http://EzineArticles.com/?expert=Brandon_Cornett
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