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
Subscribe to:
Posts (Atom)