Low Down Payment Options

Your down payment is the core of your mortgage. It affects:

* The lender's decision
* Your loan amount and your closing costs
* Mortgage type
* The size of your monthly payments
* Your mortgage interest rate
* Your amount of available cash
* Whether you'll pay mortgage insurance

The more you put down (the bigger your down payment), the less you'll have to borrow. That means lower monthly payments and lower overall mortgage costs. You'll start out with more equity in your home and have an easier time convincing a lender that you're a good risk.
A smaller down payment can cost you substantially more in the long run, but it will increase your current cash flow. If you don't have much money saved but expect to increase your future earning power, it might be the best way to go.
The benefits of putting down less
In today's market, there are a variety of mortgage options available for those who:

* Have strong current income but not a lot of savings
* Are first-time homebuyers whose high rents have left them strapped for cash
* Have low-to-moderate incomes and few cash reserves
* Are "move-up" buyers looking to buy a larger home without large cash reserves

Even if you already have a nest egg, there are many sound reasons why choosing a no or low down payment makes sense. A no/low down payment:

* Keeps your assets where they are - in higher-yielding investments or current lifestyle expenses (day care, tuition payments, recreational activities)
* Potentially gives you a larger tax deduction (Consult your tax advisor for details)
* Lets you buy right away and start turning rent payments into future equity in a home
* Frees up cash for other home buying expenses such as furniture, moving and closing costs

Recommended loans
Wells Fargo Home Mortgage offers several mortgages with low or no down payment. Click on the links below to go to our mortgage site, or use our Home Loan Workbench® to get home financing packages, estimated closing costs, and much more in an easy-to-understand itemized fashion.

* FHA Mortgage - Allows all qualified buyers to take advantage of a low down payment with flexible qualifying guidelines.
* VA Mortgage - Permits qualified veterans, reservists, and active servicemen and women to secure a loan up to a specified amount with no down payment and flexible qualifying guidelines.


https://www.wellsfargo.com/home_center/buying/articles/cis_hc_atcl_financinglowdown.jhtml

Covering The Bases: Home Buying

Buying a home is an exhilarating feeling. It can be one of life's biggest rewards. It has the potential to serve not only as your home for many years, but as the basis of your financial portfolio. as such you should never jump into a home purchase. It simply makes sense to take your time and ensure that you are getting what you are paying for. A home is a complicated conglomeration of systems that are all subject to stress, wear, and deterioration and due to this fact there are a few things that should be examined closely before purchasing any property new or old.

Homes inspections are the best way to ensure that the home you are considering buying is sound. Be careful of sellers who want to have the inspection process skipped. In skipping this process you could be buying a huge problem. There are a few things in particular that you should have the home inspector check for.

* Mold & Mildew - In previous years this never seemed to be a huge issue. However in recent times it has become a hot button issue with many due to the health concerns concerned with mold. Mold is fairly insidious and can thrive in the most unlikely of places. All mold really needs is organic material like wood and a source of moisture. This is usually attributed to a leak or a crack in the home.

* Plumbing - With pipes and water running through almost every wall in a home it is essential to ensure the proper working of the home's plumbing. Faulty plumbing can be costly to fix and can lead to problems with rotting, mold and other unsafe living conditions. Leaky pipes can also lead to extensive home repairs and some sellers will try to cover up water damage with new paint so be sure to have the plumbing checked.

* Electrical - This is a problem that has two different sides. Older homes can have wiring that is outdated, worn or is not sufficient to handle the high power draw of modern appliances. Conversely, new home sometimes have slipshod wiring that has shorts and faults. These can all be large fire hazards and quite detrimental to a home's safety.

Always be careful when purchasing a home. After all it is the safety of you and your family that is concerned here. Have a complete home inspection done on any property you are considering and have professionals check through the various systems if necessary.


http://www.amazines.com/Advice/article_detail.cfm/256091?articleid=256091

Tips To Help You Sell A Vacant House

The ad looks too good to be true -- a home with all the prerequisites you want is on the market in a fabulous neighborhood. The community is near work, the schools are great, there are lots of activities nearby -- and the asking price is competitive.

When the prospective buyers approach the newly listed home, hopes plummet -- the place is vacant. Unfortunately, a home which is merely "lived-in" when furnished and occupied may look bare and blemished when empty. But the good news is that selling a vacant home isn't an impossible task, especially if you follow these pointers:

Remember first impressions. Regardless of whether your home is vacant or not, its appeal from the street is crucial in making a positive impact with potential buyers.

Paint or fix up the front entrance as required.

If you have a lawn, keep it mowed. Hire a neighborhood teen or local landscape service to keep it maintained. If you have an automated irrigation or sprinkler system, you'll want to leave it on, or ask a neighbor to water for you. This is especially crucial in regions with scorching summers.

If your house is on the market in fall, be sure you or someone you hire keeps leaves cleaned up. Likewise, if it's winter and you live in a snowy area, be sure driveways and entrances are cleared.

Spruce up landscaping before you leave. Plant some new shrubs, lay down some fresh ground cover, or brighten it up with some colorful annuals.

Go through every room of your house, paintbrush in hand, and touch up any walls that have been scuffed or marked up. After moving furniture out, you're sure to find a slew of such marks.

Walls painted in bold, bright colors are wonderful attention-getters when complemented by furniture, rugs, and accessories. However, in an empty room, these bold colors may put buyers off. You may want to consider painting neutral colors throughout the house before you sell.

Get carpets professionally cleaned once everything is moved out. If the floors aren't taken care of, the prospective home buyer may wonder what else isn't?

Clean your house thoroughly in every nook and cranny -- including windows and fireplaces -- before you let potential buyers look at it.

If at all possible, try to leave some furniture in the house. This will give prospective buyers a sense of size and proportion -- and a place to sit down. Empty rooms tend to look smaller than they actually are.

Don't set your deserted house up for potential break-ins. You may want to invest in exterior sensor lights that automatically turn on when it gets dark and turn off at sunrise. Make sure you cancel your newspaper subscription and forward your mail.

If you have a security alarm, use it -- just be sure you leave your entrance code with your real estate broker.

Be sure you review the provisions of your homeowners insurance. Many companies have a cap on how long coverage will last while the property is vacant.

As you prepare a vacant home for sale, also consider this idea: Some buyers like the flexibility that comes with buying a vacant house. They can move in as soon or as late as they'd like, and they don't have to worry about floors getting soiled and walls getting banged up when you move out.

http://realtytimes.com/nl/nlpages101/6vacant.htm?open&id=jesselimon

The Home Buying Process - In a Nutshell

The Loan Pre-Approval Process

Obtaining pre-approval for a home loan cannot be stressed enough. Not only does it assure you that you are looking in the correct price range, it also assures the seller that you are a legitimate buyer. If you need a recommendation of a lender, I can provide you with several contact names. Searching for a home can definitely start in advance of the loan pre-approval, but it is best to be pre-approved before submitting an offer to a seller.

Let's Make an Offer

When you find the right home, the next step is to write an offer on the property. Keep in mind that if you like it, chances are you are not alone. Acting quickly can make the difference between living there and telling your friends about the house that got away. Writing up an offer generally takes about an hour. Once the offer is completed I will call the listing agent and let them know that I have a buyer for their listing. I will need to include a pre-approval letter from your lender and if there are multiple offers it can often work in your favor to include a personal letter talking about the house and why you want to purchase it.

How Firm is my Foundation? The Inspection...

Most offers to purchase are written subject to the buyer approving of a home inspection. I strongly advise doing this. The cost (around $400) is paid for by you, but it is cheap insurance if it keeps you from buying a money pit. The inspection will cover items such as the roof, gutters, wiring, plumbing, foundation, framing and insulation. It is a good idea to accompany the inspector that you hire so that you can learn the good features about the home as well as the areas that need attention. Should there be other areas of concern (heater, oil tank, foundation issues, etc.) you may want to hire a specialist in those areas. Sewer scopes are also common in the home inspection phase. I will be there during any inspections. If some items come up during the inspection that are not satisfactory to you, it is possible to negotiate with the seller to make the necessary repairs. The seller is not obligated to agree to do this, so if they don't, you are not obligated to complete the purchase.

Once you have approved the home inspection, the only hurdle left is financing. Since you have taken care of most of this by getting pre-approved, completing the process only takes about two weeks. The two main items needed are: an appraisal on the home and a preliminary title policy showing that the property is free of liens or other clouds on the title.

The Financing Process

Appraisers know the purchase price when they do their appraisal, so it is rare for an appraisal to come in above or below the agreed upon price. The main concern with appraisals has to do with the work orders. Quite often, appraisers set a value on a home conditioned upon certain repairs being made. If the repairs are not completed, the appraisal is not acceptable to the lender and the financing is not approved. This can be a problem if your desire is to get a good buy on a home that needs work, with the intention of fixing it up yourself later. I have met many appraisers on site and have a very good idea of what will and what will not get called out. I will council you during the offer preparation as to how to deal with these issues.

A Clear title is usually not difficult to obtain. Rarely do transactions fail due to unmarketable title. You will have an opportunity to review the preliminary title policy prior to signing the closing papers.

When loan approval is obtained, closing documents are drawn up and sent to escrow. The escrow agent's function is to facilitate an orderly transfer of ownership from seller to buyer. Taxes need to be prorated, any underlying liens on the property must be paid off, and many documents will be reviewed, signed and notarized. Utility transfers may possibly be handled by escrow, or you and the seller may agree to handle these on your own.

The Escrow Process - The Sale Closes. Time to Move In!

The signing of documents does not constitute closing. Closing occurs without you being present, when the documents are recorded and the proceeds check is available for the seller. If any questions or concerns arise after closing I will be there to help you.



http://localism.com/article/50242/The-Home-Buying-Process-In-a

Home Prices Are Falling

U.S. home prices in major cities are falling at the fastest rate in 16 years, Standard & Poor's reported Tuesday.

For 10 major cities, home prices fell 0.6% in July and are down 4.5% in the past year, the fastest decline since 1991, according to the Case-Shiller home price index released by S&P. For 20 major cities, prices fell 0.4% in July and are down 3.9% in the past year, the largest decline in the seven-year history of the index.

The Case-Shiller index, which tracks multiple sales of the same homes, is considered by many observers to be the best gauge of national and metro real-estate values.

Falling prices make it more difficult for homeowners to tap their home equity or refinance their mortgages. Millions of homeowners who took out adjustable-rate loans in 2005 and 2006 face sharply higher mortgage payments this year and next, with foreclosures having already soared as a result of payment resets.

The last time prices fell so much, it took more than eight years for home prices to return to their peak level.

In a separate report, the National Association of Realtors said sales of existing homes fell to a five-year low of 5.50 million units annualized in August, while inventories of unsold homes rose to an 18-year high. See full story.

"The housing outlook remains grim as home sales decline and inventory remains elevated," wrote Michelle Meyer, an economist for Lehman Bros. She expects a cumulative 15% decline from the peak in the quarterly national Case-Shiller index.

Economists at Goldman Sachs said the latest data are on track to meet its forecast for 7% declines in home prices this year and next.

There's no end in sight, but it's not a disaster for most people, said Robert Shiller, chief economist for MacroMarkets LLC.

"The big effects are likely to come next year," Shiller told MarketWatch. "We might see a decline in consumer spending and a decline in confidence that could lead to a recession." Listen to an interview with economist Robert Shiller.

Prices are lower in 15 of the 20 cities compared with a year ago, according to Case-Shiller. The biggest declines are the Rust Belt and in the formerly boom towns along the coasts. Prices are holding up in the Pacific Northwest and in areas of the South.

Here are the 20 cities covered by the Case-Shiller index, ranked from worst to best:


http://www.realestatejournal.com/buysell/markettrends/20070927-nutting.html

Be credit-wise. Tips for credit cards in Australia.

These days, life without a credit card would be hard to imagine. We have become so used to the convenience of "plastic", we don't leave home without it. (Sound familiar?) While you can't dispute the ease and convenience of not having to pay in cash at the supermarket, petrol pump or pub, here are some handy credit card reminders.

1) Say no to cash advances

Some people just don't get it, but the bank does. The Interest-free periods offered on credit card accounts never apply to cash advances. In the majority of cases, you will pay interest on the cash right from the second you withdraw it from the ATM or over the counter. The dollar penalty can really add up, so it's best not to do it. Ever.

2) Watch out for Store Cards. Loyalty can cost you

How often have you been at the cash register and asked if you would like to apply for a store card? Probably plenty of times. Department stores such as David Jones and Myer may offer you the benefits of customer discounts, added warranties and extended credit, but they aren't cheap. Although you don't pay an annual fee, the interest rate can be considerably higher (sometimes several percent) than alternative credit cards. It's fine to use them for store specials and loyalty benefits, but pay the balance in full by the due date. In this way you avoid being whacked with huge interest charges.

3. Choose a card that matches your lifestyle.

Think about your spending habits and patterns. For example: if you use a card for extended credit and don't pay off the full balance each month, just a basic payment, choose a card with a lower rate. It may not offer any interest-free period, but the lower interest rate should save you more dollars over time.

If you use your card for everyday groceries or filling up the car, go for credit card with maximum interest-free days. Make sure you pay it off in full each month. This way you get the benefit of up to 55 interest-free days on purchases, as well as rewards, discounts and frequent flyer points. But watch the annual fees on rewards cards.

4. Interest-free periods are void unless you pay in full

Don't let your credit card get out of control. To avoid paying interest on your purchases, you must pay the full balance -- that figure in black and white on your statement (not just the minimum payment required) by the due date. If you don't, be warned. You will be charged interest right back to the date of purchase on each item. In effect, you forfeit the interest-free period on those purchases.

5. Search beyond the local banks

These days, there's a lot more choice out there - not just the usual local banks. Look at credit unions, building societies, community banks, boutique and online banks. Chances are you may get offered better interest rates or lower fees than the big banks because these new providers are anxious to win business or they are non-profit organisations. We put this theory to the test. We tried HSBC and came up with 5 different types of credit card.

6. Do you qualify for a "relationship discount"?

If you consolidate your banking business and finances with one lender or bank, you can qualify for a special treatment. Loyalty does have its rewards. You can enjoy home and personal loan interest rate discounts, term deposit bonuses, savings account fee waivers and of course, credit card annual fee waivers.

7. Do you qualify for annual fee waivers?

If you spend enough on your credit card on an annual basis, some institutions offer to waive the annual fee. For instance: If your card spend is more than $5000-$10,000 a year, you could choose a card with all the benefits you want and avoid the annual fee. However, make sure you use your card to make purchases you were going to make anyway. Spending up big for the sake of reducing fees or earning rewards points is false economy.

8. Sweet deals? Don't be distracted by them.

Introductory discount rates, fabulous reward programmes and special insurance offers. Some lenders offer enticements on credit cards that can make a big impression on first glance. Be practical. Look at the overall, ongoing cost of credit of any card option. Compare the standard interest rate, interest-free period and annual fees - and weigh these up against the real value (if any) of the added extras.

Credit cards are great. But remember that you are the one in control and responsible for your debt. If you can't resist a bargain or a shopping centre blitz, leave the card at home. Pay cash.



http://www.ideamarketers.com/?Be_credit-wise__Tips_for_credit_cards_in_Australia&articleid=220693&from=PROFILE

Los Altos real estate

The city of Los Altos, California, home to over 27,000 residents, is located in Santa Clara County, at the south end of the San Francisco Peninsula. This peaceful suburb stretches seven miles and is nestled in between San Jose and San Francisco. Los Altos preserves its small town charm by housing a few well placed shopping centers and office properties along the Foothill Expressway and El Camino Real. The Los Altos real estate scene mostly consists of charming single family homes for sale along tree-lined streets, as well as upscale town houses, condominiums and even estate size homes on large lots.

Los Altos, California is well catered to families with its excellent schools, a safe community and recreational opportunities. The Los Altos School District and the Mountain View-Los Altos Union High School District provide area children with a real well-respected education. Los Altos home owners are very active in the community, ensuring that it maintains a high quality of life. Home owners can enjoy the ideal climate playing sports, picnicking, swimming and golfing at local and nearby parks such as Hillview Community Center and Park and Los Altos Golf & Country Club. There is also a large equestrian presence in Los Altos, and many residents are even able to house horses on their estates.

Living in Silicon Valley provides many employment opportunities. The area is home to some of the largest technology businesses such as Cisco, Adobe, eBay and so many more. Los Altos is conveniently positioned with freeways 101, 280 and 82 providing access to San Jose, San Francisco and the other various bay towns. The Santa Clara Transit Authority and Bay Area Rapid Transit (BART) provide public transportation, connecting Los Altos to the towns in the surrounding communities in the Santa Clara Valley. For getting around the rest of California, the nation and the world, the San Jose International Airport is just 20 miles to the south and San Francisco International Airport is just 27 miles north of most homes.



http://www.realestatearticledirectory.com/articles/california-real-estate/article124.html