It wasn't THAT long ago that we Baby Boomers worried a lot about our kids.
You know, those irrepressible Generation Y kids who were on the Internet at age 4 and who grew up clicking (my son says I grew up turning dials and that is why his generation is different).
Sitting on our own fat bubble- enhanced, low taxed properties, we watched prices spiral out of control here in the San Francisco Bay Area. We believed our children would either:
Never be able to afford a house
Move away forever
Move back in with us (eek!)
But post meltdown, all of that has changed. And in the wake of economic disaster lies a once in a lifetime opportunity to get junior into his very own house or condo.
This is the year to help your kid become a first time buyer. You snooze, you lose.
No, I cannot promise son will become a handyman or daughter will turn into Martha Stewart. But I can promise you that everyone in the family will look back someday (sooner than you think) and thank their lucky stars you took advantage of a 24 karat golden real estate opportunity to give your child financial stability.
Why this year? Here are 3 reasons that point directly to the stars being lined up perfectly:
1. Cheap properties (prices being driven down by foreclosures)
2. Low fixed rates on old fashioned 30 year mortgages
3. FHA financing finally has limits high enough to buy in California
As if that isn't ENOUGH, here is your amazing limited time BONUS OFFER: First Time Homebuyer Tax Credit of $8000 is good through the end of the year.
The strategy:
1. GIFT your child the down minimum payment (3.5% of selling price)
2. ASK the seller to pay the closing costs in your offer, so your kid needs NO cash at all.
3. SNAG a cheap property in the best location your kid can afford
Be prepared for this:
1. MULTIPLE OFFERS on lender foreclosed properties for sale
2. SELLERS insisting on an approval with a LENDER (not just a letter from the mortgage person)
3. A LONGER time line than you are expecting
10 things not to worry about:
1.Rates will go lower. FHA loans have the ability to be easily re-written if rates drop (streamline refinance
2. Real estate will be cheaper. So what? Think long term.
3. Your kid isn't "ready". Most first time buyers do not have the perspective to understand the benefit of the tax credit, or the silver lining of economic downturns. Come to think of it, you probably weren't "ready" when he was born.
4. Going on the loan with your kid. If your kid has no job now, or just can't afford to buy, you can co-sign.
5. Finding the "perfect" house/condo. It is a starter house, for crying out loud. Do not expect lender foreclosures to be pretty
6. FHA closing costs are "too high". Yep, FHA will have slightly higher closing costs than conventional. Seller may not pay closing costs. You can gift your kid closing costs, too.
7. What if my kid loses his job? "What if's" are the biggest reason for missed opportunities!
8. The real estate market is just too confusing! That is why you should find a great real estate agent
9.Getting a loan is a big hassle! Get preapproved first with a great mortgage person
10. Where will I get the cash to help my kid? How about an equity line or retirement account? Maybe Grandma has the money?
Get your kid set and maybe you could move in with him someday. (double eek!)
Maybe not.
This article was written by: Janet Guilbault, Mortgage Banker/Broker Based Out of the San Francisco Bay Area and was posted on Active Rain
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Wednesday, April 29, 2009
Monday, April 27, 2009
Seller's Home Appeal for Today's Market
After years of hearing from successful sellers that they didn't have to do a thing to sell, they now need to understand how they can stand out from their competition. Here is a handy list to help sellers determine if some features in their home might need some attention.
- Test all door and cabinet knobs. Replace mismatched or inexpensive hardware for a quick update. Buyers rarely can get beyond a knob that comes off in their hand as they attempt to use a door.
- Take the time to paint walls, trim and ceilings. Keep adjoining rooms in one color palette, which will make your home appear larger. Clean up spills from messy painters. Hire professionals to paint mullions on windows and staircase spindles.
- Slipcover mismatched furniture in a room that requires visual unification.
Discover ways to organize day-to-day room needs. Substantial wicker baskets or square stainless steel or brass containers can organize magazines, remote controls and toys. Books provide a good look, but vary them by laying some down and standing some up. - Wallpaper is considered fill-in-the-blank decorating. No two people have the same taste in this instant decorator wannabee. If it's more than three years old, take it down and paint in a neutral color. And wallpaper borders are out.
- Simple furniture rearrangement can bring new life to a tired space. Float sofas and coffee tables away from walls for a designer look. Use area rugs to anchor furniture groupings on bare tile and wood floors. Place groupings of candles and clear glass bowls filled with natural potpourri, fresh fruit or glass crystals on side and coffee tables.
- Make sure there is balanced lighting in every room for dusk and evening showings. Dimmers help set the right tone.
- Polish and wax hardwood floors to brighten and blend an old finish.
- Clean every surface until it shimmers and shines. Clean can seal a deal. Don't forget the windows.
- Purchase the best quality carpet pad which can make any new carpeting "cushy," and home buyers love cushy. Stay away from shag styles; buyers know it won't be around long in style cycles.
- Streamline window fashions. Heavy drapes are in the minority. Think "let the light shine in" when placing blinds and shades. Light and bright can overcome other issues with a home.
- Freshen-up closets with closet organizers to maximize storage space and paint a neutral, washable color. Make sure buyers can see the back of all closets and cupboards. Lighting is an often overlooked feature in closets, but buyers will always turn on lights when viewing a closet, big or small. Thinning closets, cabinets, basements, attics and garages will also help your storage spaces look larger. If you can't part with items, rent a storage locker to hold items for decision making later.
- Don't forget the basement; dark, dirty and musty basements are a turn-off to buyers. Add extra lighting, paint the floor and vacuum out all the cobwebs. Organize storage areas and take the time to clean the washing machine and dryer. To spruce up the hot water heater and furnace, wipe down with a strong cleaner. Scrub the laundry tub and sweep left-over leaves out of exterior stairs and window wells. Run a dehumidifier to reduce basement moisture.
- Take a good look from the street or road at the front of your home. Look for shrubs that are overgrown or dead and remove and replace them with shrubs or plants that are to scaled to your home. Small inexpensive bushes send the wrong message.
- Limit yard ornaments to a favored few. Excess ornaments can make yards look busy and buyers might want them included in a purchase contract.
- Paint and refresh yard lights, flagpoles, mailboxes, window boxes, fences and trellis. Don't forget the swing set or play equipment.
- Replace broken bricks on terraces, cracked concrete patios and steps.
- Restore screens on porches and lanai's. Dirty, rusty and ripped screens limit functionality to homebuyers.
- Don't leave pets unattended for property showings, especially if you think they could be aggressive or territorial around strangers.
- Have carpets and area rugs cleaned before showing your home to potential buyers. Those allergic to animal dander and hair, even if they can't see your pet will know when their eyes and nose start to alert them to an allergic reaction. Many will not purchase a home that poses strong allergy issues.
- A barking dog or overly-friendly cats can kill a showing. Be pro-active and take your pets off site for showings. Hire a dog walker to occupy pets if you can't be home.
Written by: Mark Nash / Realty Times
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Friday, April 24, 2009
Home Buying!
Whether you've spent years saving and preparing to buy a home, or you're unsure if you can afford it, the questions surrounding home buying can feel endless.You can find the answers - and peace of mind - by working with Coldwell Banker the industry leader in experience and service.Here are some tips to help you become your own landlord through home buying.
An important first step is selecting a home buying professional to help you find your dream home and fine-tune your financial expectations. Working with a buyer agent is worth consideration because he or she is legally responsible for representing the buyer's interest in a real estate transaction. Before making a decision, however, have a realtor explain the pros and cons of using a buyer agent versus a dual agent. Your Coldwell Banker Associate can guide you through every step of home buying.
Shop for mortgage rates and terms.
A difference of even half a percentage point can mean a considerable savings over the life of a loan. For example, the difference in the monthly payment on a $100,000 mortgage at 8 percent vs. 7.5 percent is about $35 per month. Over 30 years, that's $12,600.
Prequalify for a loan.
Also early on, you'll want to get prequalified for a mortgage loan, which determines how much you can afford. It allows you to move swiftly when you find the right home, especially when there are other interested buyers. It also indicates to the seller that you are serious about home buying and can afford to buy the property.
Outline What You Want.
The next step in home buying is to create a realistic idea of the property you'd like to buy. What features are most important to you? Make two lists: one of the items you can't live without and one of the features you would enjoy. Refine the lists as you house-hunt. It is also helpful to search online to see what is currently available on the market. Your real estate professional can then show you houses that meet your expectations.
Visit properties.
Now you're ready to visit houses. Ask your Coldwell Banker Associate to help in your home buying process by arranging showings. Be sure to keep track of the properties you've seen. Each time you venture out to see more properties, revisit your notes to immediately eliminate any that clearly do not meet your standards.
Know the features that help or hurt resale.
In some areas, a swimming pool actually detracts from a home's value and makes it harder to sell. In neighborhoods with two-car, attached garages, a single-car or detached garage may affect the home buying prospects and future value. Your Coldwell Banker professional can point out features that hurt or help resale value.
Rate the houses you tour.
After touring each home, write down what you liked and didn't like. Develop a rating system that will help narrow the home buying field. For example, pick the house you like best on day one and compare all other houses to it. When you find a better one, use the new favorite as the standard. Avoid trying to track more than four top choices at any given time since this can quickly become overwhelming.
Make an offer.
Once you've pinpointed your dream house, it's time to get serious about the financial and contractual side of the purchase. Let your Coldwell Banker Associate guide you through this sensitive home buying process. Because you and the seller have different goals, rely on your Coldwell Banker agent's experience and expertise to bring order and calm to the process - and help both parties reach a favorable outcome.
Arrange for a home inspection.
After your offer is accepted, set up a home inspection. It's common to find problems, including leaky roofs, cracked walls, insect infestations and foundation problems. Your real estate professional can help find a reputable inspector, and will negotiate to get you the most for your money once the inspector's report is final. If you negotiate repairs as part of the purchase, ask for a "walk through" before finalizing the home buying paperwork. Ask your real estate expert about home protection plans, which may save you money in the near future.
Close.
Before your closing date, make sure you've made all necessary deposits and completed the paperwork - including mortgage, title, homeowner's insurance and any other paperwork required by local or state governments when home buying. Your Coldwell Banker agent will be there to help you complete that closing checklist and avoid any last-minute snags. You deserve to enjoy every moment of the home buying process.
Prepare for life in your new home.
Before rolling out the welcome mat, consider some moving basics: arranging for an alarm company, turning on electricity, water and gas, cleaning or replacing the carpet, and notifying your local post office of your new address. The best time for renovations is often before you move in.
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Wednesday, April 22, 2009
Real Estate Outlook: Promising Numbers
The good news keeps rolling in about the small but important turnaround underway in the home real estate market.
Last week's headliner was the second straight monthly gain in pending home sales -- up nearly 11 percent in the Northeast, 15 percent in the Midwest, and 4.4 percent in the Southern states. Only the Western region saw a decline at 13.5 percent.
On top of that, the ability of consumers to buy a house, as measured by the National Association of Realtors' Affordability Index, hit a record new high last month thanks to declining home prices and record-low mortgage rates.
To put it bluntly: Median priced houses haven't been more affordable to more households in decades!
Mortgage rates continued to drop last week -- even from the record lows the week before, according to the Mortgage Bankers Association. Thirty year rates now average just 4.6 percent and 15-year fixed loans average 4.45 percent with about a point.
Not surprisingly, applications for new mortgages to buy houses and condos jumped again for the third straight week -- up about 1.4 percent for FHA loans and one percent for conventional mortgages.
Lawrence Yun, chief economist for the National Association of Realtors, agreed that the pending home sales and affordability numbers are promising, but he said the market still has a ways to go before it's really at rebound stage.
He also noted reports by realty firms of higher numbers of shoppers visiting open houses, checking online listings and following up with agents. Those "recent increases in shopping activity," he said, "are hopeful indicators that we'll see some additional sales gains" in the weeks ahead.
Meanwhile, there were other positive economic signs popping up like spring daffodils. For example, both the major indexes that measure consumer confidence, which is a key driver of home buying, were up slightly in the last month. The University of Michigan's survey and the Conference Board's index both registered small gains. Both, however, remain at low levels in comparison to non-recession periods in past years.
And consumer spending registered a small increase, up by seven tenths of a percent in the last month. Personal income was up slightly as well.
All in all not a bad set of reports in the middle of an economic recession and financial crisis.
That doesn't mean happy days are here again, but they do point to much better days for real estate as we proceed through the year.
Written by: Kenneth R. Harney / Realty Times
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Last week's headliner was the second straight monthly gain in pending home sales -- up nearly 11 percent in the Northeast, 15 percent in the Midwest, and 4.4 percent in the Southern states. Only the Western region saw a decline at 13.5 percent.
On top of that, the ability of consumers to buy a house, as measured by the National Association of Realtors' Affordability Index, hit a record new high last month thanks to declining home prices and record-low mortgage rates.
To put it bluntly: Median priced houses haven't been more affordable to more households in decades!
Mortgage rates continued to drop last week -- even from the record lows the week before, according to the Mortgage Bankers Association. Thirty year rates now average just 4.6 percent and 15-year fixed loans average 4.45 percent with about a point.
Not surprisingly, applications for new mortgages to buy houses and condos jumped again for the third straight week -- up about 1.4 percent for FHA loans and one percent for conventional mortgages.
Lawrence Yun, chief economist for the National Association of Realtors, agreed that the pending home sales and affordability numbers are promising, but he said the market still has a ways to go before it's really at rebound stage.
He also noted reports by realty firms of higher numbers of shoppers visiting open houses, checking online listings and following up with agents. Those "recent increases in shopping activity," he said, "are hopeful indicators that we'll see some additional sales gains" in the weeks ahead.
Meanwhile, there were other positive economic signs popping up like spring daffodils. For example, both the major indexes that measure consumer confidence, which is a key driver of home buying, were up slightly in the last month. The University of Michigan's survey and the Conference Board's index both registered small gains. Both, however, remain at low levels in comparison to non-recession periods in past years.
And consumer spending registered a small increase, up by seven tenths of a percent in the last month. Personal income was up slightly as well.
All in all not a bad set of reports in the middle of an economic recession and financial crisis.
That doesn't mean happy days are here again, but they do point to much better days for real estate as we proceed through the year.
Written by: Kenneth R. Harney / Realty Times
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Monday, April 20, 2009
Investor Report: Refinancings
Small-scale real estate investors got a pleasant surprise last week when Fannie Mae and Freddie Mac said they'd refinance potentially thousands of mortgages on rental and second homes as part of the Obama administration's massive housing relief effort.
The White House had announced last month that its refinancing effort would be for owner-occupied principal residences whose loans are either owned or have been guaranteed by Fannie or Freddie in mortgage-backed securities.
But when the two companies sent details of their upcoming programs to lenders last week, investor loans and mortgages on second homes WERE included among those eligible for refinancings.
A Freddie Mac spokesman, Brad German, explained that investors loans were included because refinancings can “help reduce renter evictions by putting landlords in a (more affordable) refi that improves their chance of success.”
That's excellent news for some investors, but it won't help out everybody.
Here's a quick overview of who's eligible and how to apply:
First, your investment property or second home loan must be owned or guaranteed by either Fannie or Freddie. Ask your loan servicer. Or you can go to websites set up by the companies to speed the process - Fannie Mae or FreddieMac.
If your mortgage is in some other institution's portfolio ... or in a private mortgage security, this program isn't for you.
Next, make a rough estimate of your current loan to value ratio on the property. If your mortgage balance does not exceed your property value by more than five percent, you're eligible.
Say you bought a rental duplex a few years back for $500,000 with a first mortgage of $400,000 at seven and a half percent that was acquired by Fannie Mae. You'd love to refinance that to today's much lower rates in the fives or sixes to increase your cash flow.
Because of local property value declines, say your duplex is now worth about the amount of your loan balance. That precludes you from refinancing from most sources, but under Fannie's special program, you'll be eligible … PROVIDED your loan balance does not exceed the property value by five percent.
There's another hoop to jump through: Your payment history on the mortgage needs to be just about flawless -- no thirty day late payments during the past 12 months -- or you won't get a refi.
Two additional, positive details to be aware of: Your credit score WON'T be a problem because Fannie and Freddie have agreed to waive their usual minimums, and you WON'T have to pay for new mortgage insurance.
Written by: Kenneth R. Harney / Realty Times
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
The White House had announced last month that its refinancing effort would be for owner-occupied principal residences whose loans are either owned or have been guaranteed by Fannie or Freddie in mortgage-backed securities.
But when the two companies sent details of their upcoming programs to lenders last week, investor loans and mortgages on second homes WERE included among those eligible for refinancings.
A Freddie Mac spokesman, Brad German, explained that investors loans were included because refinancings can “help reduce renter evictions by putting landlords in a (more affordable) refi that improves their chance of success.”
That's excellent news for some investors, but it won't help out everybody.
Here's a quick overview of who's eligible and how to apply:
First, your investment property or second home loan must be owned or guaranteed by either Fannie or Freddie. Ask your loan servicer. Or you can go to websites set up by the companies to speed the process - Fannie Mae or FreddieMac.
If your mortgage is in some other institution's portfolio ... or in a private mortgage security, this program isn't for you.
Next, make a rough estimate of your current loan to value ratio on the property. If your mortgage balance does not exceed your property value by more than five percent, you're eligible.
Say you bought a rental duplex a few years back for $500,000 with a first mortgage of $400,000 at seven and a half percent that was acquired by Fannie Mae. You'd love to refinance that to today's much lower rates in the fives or sixes to increase your cash flow.
Because of local property value declines, say your duplex is now worth about the amount of your loan balance. That precludes you from refinancing from most sources, but under Fannie's special program, you'll be eligible … PROVIDED your loan balance does not exceed the property value by five percent.
There's another hoop to jump through: Your payment history on the mortgage needs to be just about flawless -- no thirty day late payments during the past 12 months -- or you won't get a refi.
Two additional, positive details to be aware of: Your credit score WON'T be a problem because Fannie and Freddie have agreed to waive their usual minimums, and you WON'T have to pay for new mortgage insurance.
Written by: Kenneth R. Harney / Realty Times
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Friday, April 17, 2009
Choose your realtor wisely!
More than 2 million people in the United States have earned real estate licenses.
However, real estate is a tough business with a steep dropout rate, and the result is that only a small percentage of those with licenses actively help buyers and sellers.
However, real estate is a tough business with a steep dropout rate, and the result is that only a small percentage of those with licenses actively help buyers and sellers.
The National Association of realtor (NAR) includes 1 million brokers and salespeople, individuals bound together with a strong Code of Ethics, extensive training opportunities and a wealth of community information. NAR members are routinely active in PTAs, local government committees and a variety of neighborhood organizations. Being actively involved in community affairs provides realtor with a better understanding of the area in which they are selling.
Why?
Why?
Buying and selling real estate is a complex matter. At first it might seem that by checking local picture books or online sites you could quickly find the right home at the right price.
But a basic rule in real estate is that all properties are unique. No two properties -- even two identical models on the same street -- are precisely and exactly alike. Homes differ and so do contract terms, financing options, inspection requirements and closing costs. Also, no two transactions are alike.
In this maze of forms, financing, inspections, marketing, pricing and negotiating, it makes sense to work with professionals who know the community and much more. Those professionals are the local realtors who serve your area.
How do you choose?
But a basic rule in real estate is that all properties are unique. No two properties -- even two identical models on the same street -- are precisely and exactly alike. Homes differ and so do contract terms, financing options, inspection requirements and closing costs. Also, no two transactions are alike.
In this maze of forms, financing, inspections, marketing, pricing and negotiating, it makes sense to work with professionals who know the community and much more. Those professionals are the local realtors who serve your area.
How do you choose?
In every community you're likely to find a number of realty brokerages. Because there is heated competition, local realtor must fight hard to succeed in your community.
The best place to find a local realtor is right at you doorstep, at Coldwell Banker, with their extensive listing of community professionals and properties nationwide, there’s an agent for everyone! Other sources include open houses, local advertising, Web sites, referrals from other realtor recommendations from neighbors and suggestions from lenders, attorneys, financial planners and CPAs. The experiences and recommendations of past clients can be invaluable.
In many cases buyers will interview several realtors before selecting one professional with whom to work. These interviews represent a good opportunity to consider such issues as training, experience, representation and professional certifications.
What should you expect when you work with a realtor?
The best place to find a local realtor is right at you doorstep, at Coldwell Banker, with their extensive listing of community professionals and properties nationwide, there’s an agent for everyone! Other sources include open houses, local advertising, Web sites, referrals from other realtor recommendations from neighbors and suggestions from lenders, attorneys, financial planners and CPAs. The experiences and recommendations of past clients can be invaluable.
In many cases buyers will interview several realtors before selecting one professional with whom to work. These interviews represent a good opportunity to consider such issues as training, experience, representation and professional certifications.
What should you expect when you work with a realtor?
Once you select a realtor you will want to establish a proper business relationship. You likely know that some realtor represent sellers while others represent buyers. Each realtor will explain the options available, describe how he or she typically works with individuals and provide you with complete agency disclosures (the ins and outs of your relationship with the agent) as required in your state.
Once hired for the job, the realtor will provide you with information detailing current market conditions, financing options and negotiating issues that might apply to a given situation. Remember: Because market conditions can change and the strategies that apply in one negotiation may be inappropriate in another, this information should not be set in stone. During your time in the marketplace Alvin Steinberg will keep you updated and alert you to each step in the transaction process.
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Wednesday, April 15, 2009
Are You Really Ready To Buy A Home?
The news is all good, interest rates are lower than ever. Housing prices are down. The first time home buyers $8,000 tax credit is a great incentive to purchase a home this year. What to do first?
- Find a reputable lender. Find out how much you are qualified for, make sure that you look at what your mortgage payment will be per month, include your real estate taxes in this computation. You want to know this first, before even looking at homes. I insist on this with my buyers. Looking at homes with a price range you think will work often leads to heartache.
- Ask about first time home buyer programs. There are many good programs available to you, make sure you investigate all the options.
- Find a reputable Realtor. Remember, you will be spending time with this person, looking to them for advice, putting your trust in them to assist you with the largest purchase you will make in a long time. This is not a car, this is your home!
- Be ready to make changes. You should have a wants and needs list. But be prepared to make adjustments in these lists as you visit more homes. Perhaps the homes in your price range will not have that extra half bath you thought you couldn't live without. Maybe the home will not have a granite countertop. Be flexible and realistic.
- Be honest with yourself. If you fall in love with the idea of a particular home, but for instance it will require too much work that you are not capable of doing or paying for, move on.
- Don't assume that all homes are overpriced. Putting in low ball offers can really become problematic. Let's say you find the home of your dreams, you really want this home and put in an offer. Because you have read somewhere that all homes are overpriced by at least 25% you base your offer on that premise. The seller does not have to sell, and never responds to you. You may anger them so much they may not look at any other offer you make as serious. Ask your Realtor to do a buyers market analysis for you. Trust your Realtor to do their job! A good Realtor will tell you if the house is priced correctly or not.
- If you want that bargain priced home, look at foreclosures. Even short sales have to be approved by the bank, and they are not so willing to let it go for the price it might fetch when it has been foreclosed on and left vacant for a year. This is a reality of todays market.
- Be patient. It could take time, especially in the lower price range.
This article was written by: Andrea Swiedler and posted on Active Rain
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Monday, April 13, 2009
Buying a House During a Recession
Yes, it is a buyers market these days, but a recession can make finding a home and getting a loan a little trickier. Home inventories are down, but so are prices and mortgage rates. Navigating the perks and pitfalls of buying a home in these financially uncertain times can take a little finesse.
While nationwide the median home price is down 16 percent over the last year, that is certainly not the case in Austin. Prices are down a few percentage points from where they were a year ago and houses do sit a little longer on the market. Historically low mortgage rates and other incentives, like the $8,000 tax credit for first-time home buyers, make this an optimal time to buy a home.
A good place to start is to get your financial house in order, so to speak. How much house can you afford? To be more direct: How much of a monthly mortgage payment can you reasonably afford on your current household income? Determining the price range of a house needs to include how much money you have available for a down payment. An applicant with good credit and cash available for a down payment can get an excellent mortgage rate. It is important to shop around for mortgage rates and lenders. Getting pre-approval for a home loan means a prospective buyer can start the house hunt with knowledge of their limits and confidence about getting a mortgage.
Now it's time to make a list of requirements for a new home. Two stories or one? How many bedrooms? Is a new kitchen important or is a certain school area a must? It's important to have list of basic requirements for a new home. Knowing the price range and having a general area of interest helps to narrow the focus when searching for a new home.
A good place to start the house hunt is looking on the computer. Using the Yahoo! real estate section or realtors.com can help you figure out what's on the market in your price range, and it can also be a preliminary step in finding a realtor. Computer research is a terrific tool for house hunting, but keep in mind seeing a house in person might be a different experience.
The next step is finding a real estate agent. Asking friends and family for recommendations is a good place to start. Doing research on the computer and looking at newspaper real estate ads are also good sources to begin with. Don't be afraid to ask questions and don't feel pressured to settle on the first agent you meet. It is important that you feel comfortable with your real estate agent and feel that he or she is really going to listen to you.
A recession means there are fewer homes on the market, but it also means that sellers are serious about making a sale. Choosing an experienced real estate agent will help you make the most out of your search. Be prepared to spend some time and don't get discouraged if the house of your dreams doesn't materialize on your first day of looking. Keep a notebook handy to jot down notes, keep your list of requirements in mind and be willing to be flexible. But most of all, be assured that you are buying a house at a great time.
This article was written by: Ki Gray and posted on Active Rain
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
While nationwide the median home price is down 16 percent over the last year, that is certainly not the case in Austin. Prices are down a few percentage points from where they were a year ago and houses do sit a little longer on the market. Historically low mortgage rates and other incentives, like the $8,000 tax credit for first-time home buyers, make this an optimal time to buy a home.
A good place to start is to get your financial house in order, so to speak. How much house can you afford? To be more direct: How much of a monthly mortgage payment can you reasonably afford on your current household income? Determining the price range of a house needs to include how much money you have available for a down payment. An applicant with good credit and cash available for a down payment can get an excellent mortgage rate. It is important to shop around for mortgage rates and lenders. Getting pre-approval for a home loan means a prospective buyer can start the house hunt with knowledge of their limits and confidence about getting a mortgage.
Now it's time to make a list of requirements for a new home. Two stories or one? How many bedrooms? Is a new kitchen important or is a certain school area a must? It's important to have list of basic requirements for a new home. Knowing the price range and having a general area of interest helps to narrow the focus when searching for a new home.
A good place to start the house hunt is looking on the computer. Using the Yahoo! real estate section or realtors.com can help you figure out what's on the market in your price range, and it can also be a preliminary step in finding a realtor. Computer research is a terrific tool for house hunting, but keep in mind seeing a house in person might be a different experience.
The next step is finding a real estate agent. Asking friends and family for recommendations is a good place to start. Doing research on the computer and looking at newspaper real estate ads are also good sources to begin with. Don't be afraid to ask questions and don't feel pressured to settle on the first agent you meet. It is important that you feel comfortable with your real estate agent and feel that he or she is really going to listen to you.
A recession means there are fewer homes on the market, but it also means that sellers are serious about making a sale. Choosing an experienced real estate agent will help you make the most out of your search. Be prepared to spend some time and don't get discouraged if the house of your dreams doesn't materialize on your first day of looking. Keep a notebook handy to jot down notes, keep your list of requirements in mind and be willing to be flexible. But most of all, be assured that you are buying a house at a great time.
This article was written by: Ki Gray and posted on Active Rain
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Friday, April 10, 2009
Are you an investor that is looking to buy a home in the Lake Tahoe area? They come in all shapes, sizes and conditions!
Even if you are beginning to trek that path and looking to become a small investor of a few properties in 2009, then now is a great time to take on the investor dream!
If you are paying cash, fantastic! If you are looking to finance, then perhaps it's your lucky day! There is a new Fannie Mae loan program available for those looking to purchase a Fannie Mae foreclosed property that needs renovation!
It works like this:
Fannie Mae has a great loan program designed just for this situation that is a close cousin to the Fannie Mae HomePath mortgage program but designed just for investors.
It is called the Fannie Mae HomeStyle Renovation Mortgage program.
The HomeStyle Renovation mortgage program allows borrowers to combine the cost of the home with the costs for renovation or remodeling.
At closing, all funds for renovation will be escrowed in an interest-bearing account. After all renovation work is complete, any remaining funds in the escrow account will be used to pay down the principal balance of the mortgage.
Fannie Mae HomeStyle Renovation Mortgage Highlights:
Up to 95% LTV
*Renovation funds escrowed in an interest bearing account
*Soft costs (architectural services, engineering, permit fees, etc.) may be financed
*Loans are underwritten to FNMA guidelines
HomeStyle Renovation Mortgage: More Information
Borrowers can basically do any repairs / renovation to the home that they want as long as the appraisal supports the value, the improvements are common for the area (pools, for example), the repairs can be completed within six months, and the repairs do not exceed 50% of the after improved appraised value.
The only types of repair that I would not recommend under the HomeStyle Renovation mortgage program are water damage, mold, and any structural repairs to the foundation and/or load bearing walls. These types of repairs have a tendency to escalate into much larger projects once the builder does the demo and determines what the actual repairs are needed to fix the damage to the property.
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
Wednesday, April 8, 2009
Top 10 Home Buying Tips For Short Sales – A Guide To Understanding Short Sale Foreclosure Real Estate
Modern homebuyers will inevitably come across one or more properties currently classified as a short sale. A short sale is an attempt by the current owner to sell a home in lieu of the bank taking it back through foreclosure proceedings, thus partially salvaging their credit rating and lifting the burden of heavy mortgage debt. The entire short sale process hinges on the hope that the bank will take a loss now, approve the sale, and eliminate the costly process of foreclosing, clearing, and reselling a home. Obviously, this is a big hope on behalf of prospective homebuyers as well and they need to understand some things in order to lessen the chance for disappointment of unapproved short sales. This is what they should know:
1. Price is usually set by the agent & seller, not bank: The agent and seller often create a very low asking price in order to attract buyers. The bank is normally unaware of the asking price; however, the bank has the final say in what an acceptable offer will be. Since the bank has the power to ultimately accept or deny offers, their lack of price awareness often leads to the process taking longer than anticipated. The bottom line is that the buyer needs to remain positive and patient throughout the entire process, sometimes even for months.
2. Loans owned by 1 bank usually better than 2: If the seller has loans owned by two different banks it is a lot more difficult to approve the short sale. This is something the agent or the buyer cannot control; it simply depends on the willingness of the bank or banks involved. While the reasons are beyond the scope of this guide, buyers should know that when the seller only has loan(s) with one bank the short sale often becomes more buyer-friendly. A savvy Realtor can let you know this type of information.
3. Lowball offers get slow or no response: Remember that the bank is typically unaware of the pricing during a short sale. When lowball offers stream into the bank they are often scoffed at and rejected, giving the prospected buyers little or no feedback. Surprisingly, it may also take painstakingly long to hear back even on good offers due to the high volume of transactions lenders are inundated with these days.
4. Agent must check comparables before submitting offer: The agent must be sure to check recent home sales in the area to give buyers a better idea of the properties that are selling. This will give the agent and the seller appropriate grounds for an asking price that will be more likely to be approved by the bank. Checking comparables will also give the buyer a better knowledge of what price homes in the neighborhood are selling for and ultimately make them a more informed homebuyer.
5. Don’t hang your hat on the property: Short sales aren’t necessarily "short." It can sometimes be a very long process. Don’t get your hopes up for just one property, keep your options open and continue to actively look at multiple properties. Buyers must remain optimistic, the right property will come along. In most areas it is completely legal and risk-free to have multiple offers out at any given time with the proper contingencies.
6. Sellers with other properties or too strong of financials may not qualify for short sale and/or may be asked to pay the difference: Sellers that own more than a handful of properties or have an extremely large net worth will probably not be eligible for short sale. In some cases the seller will be asked to pay the difference of the sale. The seller might even need to sign a promisary note stating that they will pay back all or most of the debt. This has virtually no effect on the buyer as long as the seller cooperates.
7. "Approved" prices are quickest: It is important to remember that short sales are not always timely; however, making an offer on an "approved short sale" can be a quicker process. An "approved short sale" has a price that has already been given the green light by the bank. This could be due to the fact that another interested buyer made an offer that was approved, but didn’t end up buying the property. These types of short sales are some of the most highly desirable.
8. Some banks look want strongest buyers, some want strongest offers: The bank has all the power in approving short sales. The bank can pick the most appealing buyer, which may mean different things to different banks. Some banks may prefer the buyers with large down payments while others just want the highest price regardless of down payment. Many buyers want to know if they will get a deeper discount for an all cash offer. This is very hard to predict and one will never really know until they make an offer. As long as the buyer is surrounded by a good team we would advise them to do just that.
9. Repairs are seldom done, credit is more frequent: If there are improvements that need to be made on a home, even if they are necessary to get a loan, it is often unlikely that they will be done. Typically there is some sort of credit issued and the buyer must take the responsibility of fixing anything that is broken.
10. When you get approval, must close on time: During a short sale there is no leniency with the closing escrow date as there often is in a traditional sale. During a short sale, exceptions are rarely made and the buyer must close on time. Because of this, it is important to take care of all loan paperwork immediately after opening escrow. We’d advise buyers to be extra prepared and try to have the loan finalized a few days in advance of the closing date. If there is going to be an issue that will prevent closing on time, a request for an extension will need to be made immediately. If the request is made early enough, many banks will grant an extension but don’t just assume it will happen.
Short sales can be a great opportunity to find your new home at a competitive price. A Short sale could also be a major headache that lasts for months. It is important to have a good understanding of the factors that lead to a successful short sale to make it an enjoyable and profitable experience. We hope that these tips will help you to remain positive and optimistic throughout the process.
Written by: Todd Foust and Jennifer McNamara / Realty Times
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
1. Price is usually set by the agent & seller, not bank: The agent and seller often create a very low asking price in order to attract buyers. The bank is normally unaware of the asking price; however, the bank has the final say in what an acceptable offer will be. Since the bank has the power to ultimately accept or deny offers, their lack of price awareness often leads to the process taking longer than anticipated. The bottom line is that the buyer needs to remain positive and patient throughout the entire process, sometimes even for months.
2. Loans owned by 1 bank usually better than 2: If the seller has loans owned by two different banks it is a lot more difficult to approve the short sale. This is something the agent or the buyer cannot control; it simply depends on the willingness of the bank or banks involved. While the reasons are beyond the scope of this guide, buyers should know that when the seller only has loan(s) with one bank the short sale often becomes more buyer-friendly. A savvy Realtor can let you know this type of information.
3. Lowball offers get slow or no response: Remember that the bank is typically unaware of the pricing during a short sale. When lowball offers stream into the bank they are often scoffed at and rejected, giving the prospected buyers little or no feedback. Surprisingly, it may also take painstakingly long to hear back even on good offers due to the high volume of transactions lenders are inundated with these days.
4. Agent must check comparables before submitting offer: The agent must be sure to check recent home sales in the area to give buyers a better idea of the properties that are selling. This will give the agent and the seller appropriate grounds for an asking price that will be more likely to be approved by the bank. Checking comparables will also give the buyer a better knowledge of what price homes in the neighborhood are selling for and ultimately make them a more informed homebuyer.
5. Don’t hang your hat on the property: Short sales aren’t necessarily "short." It can sometimes be a very long process. Don’t get your hopes up for just one property, keep your options open and continue to actively look at multiple properties. Buyers must remain optimistic, the right property will come along. In most areas it is completely legal and risk-free to have multiple offers out at any given time with the proper contingencies.
6. Sellers with other properties or too strong of financials may not qualify for short sale and/or may be asked to pay the difference: Sellers that own more than a handful of properties or have an extremely large net worth will probably not be eligible for short sale. In some cases the seller will be asked to pay the difference of the sale. The seller might even need to sign a promisary note stating that they will pay back all or most of the debt. This has virtually no effect on the buyer as long as the seller cooperates.
7. "Approved" prices are quickest: It is important to remember that short sales are not always timely; however, making an offer on an "approved short sale" can be a quicker process. An "approved short sale" has a price that has already been given the green light by the bank. This could be due to the fact that another interested buyer made an offer that was approved, but didn’t end up buying the property. These types of short sales are some of the most highly desirable.
8. Some banks look want strongest buyers, some want strongest offers: The bank has all the power in approving short sales. The bank can pick the most appealing buyer, which may mean different things to different banks. Some banks may prefer the buyers with large down payments while others just want the highest price regardless of down payment. Many buyers want to know if they will get a deeper discount for an all cash offer. This is very hard to predict and one will never really know until they make an offer. As long as the buyer is surrounded by a good team we would advise them to do just that.
9. Repairs are seldom done, credit is more frequent: If there are improvements that need to be made on a home, even if they are necessary to get a loan, it is often unlikely that they will be done. Typically there is some sort of credit issued and the buyer must take the responsibility of fixing anything that is broken.
10. When you get approval, must close on time: During a short sale there is no leniency with the closing escrow date as there often is in a traditional sale. During a short sale, exceptions are rarely made and the buyer must close on time. Because of this, it is important to take care of all loan paperwork immediately after opening escrow. We’d advise buyers to be extra prepared and try to have the loan finalized a few days in advance of the closing date. If there is going to be an issue that will prevent closing on time, a request for an extension will need to be made immediately. If the request is made early enough, many banks will grant an extension but don’t just assume it will happen.
Short sales can be a great opportunity to find your new home at a competitive price. A Short sale could also be a major headache that lasts for months. It is important to have a good understanding of the factors that lead to a successful short sale to make it an enjoyable and profitable experience. We hope that these tips will help you to remain positive and optimistic throughout the process.
Written by: Todd Foust and Jennifer McNamara / Realty Times
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Monday, April 6, 2009
Where Housing is Headed
We received an important indicator of where housing is headed last month, when new mortgage applications for home purchases and refinances suddenly surged as they hadn't in months.
Applications for FHA loans to buy houses were up by 10.4 percent. And overall home purchase applications jumped by 7.1 percent.
Meanwhile mortgage interest rates dropped to their second lowest level in nearly two decades, according to the Mortgage Bankers Association. Thirty year fixed rates averaged 4.96 percent and fifteen year rated dropped to just 4.5 percent.
Why's this important? New financing applications to buy homes obviously point to rising purchase contracts and closed sales in the months ahead. They also suggest that prices have hit a level in many markets that is attracting once-hesitant buyers off the sidelines.
There's still another factor that's likely at work here as well: Congress's recent improvements to the home purchase tax credit -- pushing it to $8,000 from $7,500 and making it non-repayable. George Ratiu, research economist for the National Association of Realtors, says the big jump in loan applications could be tied to the improved credit in the stimulus package signed into law last month.
"Consumers may be responding to the stimulation" effect of the better credit for 2009, he said.
But let's be clear here: A rise in home purchase applications does not suggest we've turned the corner in the cycle or have solved the multiple challenges facing markets around the country -- high foreclosure levels, continuing domination in some areas of REO and short sales, and continuing increases in the unemployment rate.
Even amid these problems, however, there are some hints of possible improvements ahead. For example, a new study by research firm Realty Trac and USA Today found that despite the constant headlines about record levels of foreclosures, the more closely you look, the more you find that those numbers are highly concentrated in a relatively small number of counties.
More than half of the nation's foreclosures in 2008, researchers found, were concentrated in just 35 counties in 12 states. You can guess where: California, Las Vegas, Phoenix and Florida.
But the really eye-opening finding: In more than 650 other counties, representing one fifth of all markets in the U.S., foreclosure numbers have actually declined since 2006.
Foreclosures are horrible no matter where they occur. But the fact is: Huge portions of the United States have NOT been seeing record foreclosures, short sales or even serious property value declines. They're doing better.
Written by: Kenneth R. Harney / Realty Times
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Applications for FHA loans to buy houses were up by 10.4 percent. And overall home purchase applications jumped by 7.1 percent.
Meanwhile mortgage interest rates dropped to their second lowest level in nearly two decades, according to the Mortgage Bankers Association. Thirty year fixed rates averaged 4.96 percent and fifteen year rated dropped to just 4.5 percent.
Why's this important? New financing applications to buy homes obviously point to rising purchase contracts and closed sales in the months ahead. They also suggest that prices have hit a level in many markets that is attracting once-hesitant buyers off the sidelines.
There's still another factor that's likely at work here as well: Congress's recent improvements to the home purchase tax credit -- pushing it to $8,000 from $7,500 and making it non-repayable. George Ratiu, research economist for the National Association of Realtors, says the big jump in loan applications could be tied to the improved credit in the stimulus package signed into law last month.
"Consumers may be responding to the stimulation" effect of the better credit for 2009, he said.
But let's be clear here: A rise in home purchase applications does not suggest we've turned the corner in the cycle or have solved the multiple challenges facing markets around the country -- high foreclosure levels, continuing domination in some areas of REO and short sales, and continuing increases in the unemployment rate.
Even amid these problems, however, there are some hints of possible improvements ahead. For example, a new study by research firm Realty Trac and USA Today found that despite the constant headlines about record levels of foreclosures, the more closely you look, the more you find that those numbers are highly concentrated in a relatively small number of counties.
More than half of the nation's foreclosures in 2008, researchers found, were concentrated in just 35 counties in 12 states. You can guess where: California, Las Vegas, Phoenix and Florida.
But the really eye-opening finding: In more than 650 other counties, representing one fifth of all markets in the U.S., foreclosure numbers have actually declined since 2006.
Foreclosures are horrible no matter where they occur. But the fact is: Huge portions of the United States have NOT been seeing record foreclosures, short sales or even serious property value declines. They're doing better.
Written by: Kenneth R. Harney / Realty Times
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Friday, April 3, 2009
Who has a great advantage in today's Real Estate Market?
Sellers? Buyers? Investors? Realtors? Lenders?
The correct answer, in my opinion is clearly: First Time Home Buyers. (Therapists might take a good second place!)
Qualified and prepared first time home buyer 's have some wonderful perk$!
If you are considering purchasing your first home, this could be your historical golden opportunity! Here are some concrete reasons why you have an advantage, and also why- as first time home buyers, you are key for helping the market continue to move forward.
Mainly- you don't have a home to sell . A back up of inventory is partially responsible for the big slow down. If you as a first time home buyer can get over your fear and confusion about what " the market" is doing, you not only will help yourself by purchasing a home, but you will be part of the overall solution to help correct this market.
This is a true buyers market - the best in many years! Sellers are often ready and willing to " make a deal" and in many cases, help pay for costs and concessions. This translates to out of pocket money you might not save in a different market. You can ask sellers to pay things like closing costs, buy down your already great interest rate, and get creative in contract inclusions such as appliances and inspection improvements.
The best home selection 15 years! Wowza! This amazing home selection requires that you are carefully pre-approved for just the right price range so you don't waste your time being overwhelmed by the choices. Do your homework first, with a good realtor. Decide on area, and must have amenities before looking at homes. This will save you from becoming exasperated by the experience. I offer a great service that e-mails all of the homes directly to buyers that fit their personalized search criteria. This service truly saves the buyer from driving all over the place, wasting precious gas, and educates you about the current Spokane WA real estate market inventory.
***HUGE TAX CREDIT*** and advantages! If you buy before July 2009, you are eligible for a 7500$ tax credit! If you buy before Dec. 31st 2008 YOU will get that back with your 2008 return! You also have the ongoing tax benefit of home ownership. (changes in the works for an 8000 credit and an extension date)
Follow your Dreams, not the market! Ask yourself, if I don't buy my first home in this market, will I regret waiting? Am I comfortable buying later in a potentially rising market? My professional advice is to do what is best for you and your family. Don't try to second guess the market. Create your own economy by enjoying the incredible ongoing benefits, pride and enjoyment of home ownership. It's the American dream . Realize the dream by owning your first home. It's truly your market!
Tip's for First time Home Buyers:
CHOOSE your Realtor and Lender wisely. Ask trusted parents and friends who did a great job for them. You should interview a Realtor to see if they are knowledgeable and a good personal fit for you.
PLAN ahead financially . Find out about loan costs, down payments, and fees prior to looking at homes. Create your wish list in a home. This will help guide you and keep you positive.
EXPECT this to be a very worthwhile, but sometimes challenging process. There is a considerable amount of time, energy, and emotion that goes into buying your first home.
RESERVE time to deal with these precious resources!
PACE yourself. Our culture seems to think we need everything NOW. Be patient and wise in your purchases of furniture and accessories for your new home. We can truly reduce stress by simplifying!
HAVE FUN! Buying your first home will be a memorable, life changing experience. Keep your sense of humor!
If you are considering buying your first home in Spokane WA. I would love to meet with you in person.
(written by BethAnn Long, Realtor,)
Published on ActiveRain.com
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
The correct answer, in my opinion is clearly: First Time Home Buyers. (Therapists might take a good second place!)
Qualified and prepared first time home buyer 's have some wonderful perk$!
If you are considering purchasing your first home, this could be your historical golden opportunity! Here are some concrete reasons why you have an advantage, and also why- as first time home buyers, you are key for helping the market continue to move forward.
Mainly- you don't have a home to sell . A back up of inventory is partially responsible for the big slow down. If you as a first time home buyer can get over your fear and confusion about what " the market" is doing, you not only will help yourself by purchasing a home, but you will be part of the overall solution to help correct this market.
This is a true buyers market - the best in many years! Sellers are often ready and willing to " make a deal" and in many cases, help pay for costs and concessions. This translates to out of pocket money you might not save in a different market. You can ask sellers to pay things like closing costs, buy down your already great interest rate, and get creative in contract inclusions such as appliances and inspection improvements.
The best home selection 15 years! Wowza! This amazing home selection requires that you are carefully pre-approved for just the right price range so you don't waste your time being overwhelmed by the choices. Do your homework first, with a good realtor. Decide on area, and must have amenities before looking at homes. This will save you from becoming exasperated by the experience. I offer a great service that e-mails all of the homes directly to buyers that fit their personalized search criteria. This service truly saves the buyer from driving all over the place, wasting precious gas, and educates you about the current Spokane WA real estate market inventory.
***HUGE TAX CREDIT*** and advantages! If you buy before July 2009, you are eligible for a 7500$ tax credit! If you buy before Dec. 31st 2008 YOU will get that back with your 2008 return! You also have the ongoing tax benefit of home ownership. (changes in the works for an 8000 credit and an extension date)
Follow your Dreams, not the market! Ask yourself, if I don't buy my first home in this market, will I regret waiting? Am I comfortable buying later in a potentially rising market? My professional advice is to do what is best for you and your family. Don't try to second guess the market. Create your own economy by enjoying the incredible ongoing benefits, pride and enjoyment of home ownership. It's the American dream . Realize the dream by owning your first home. It's truly your market!
Tip's for First time Home Buyers:
CHOOSE your Realtor and Lender wisely. Ask trusted parents and friends who did a great job for them. You should interview a Realtor to see if they are knowledgeable and a good personal fit for you.
PLAN ahead financially . Find out about loan costs, down payments, and fees prior to looking at homes. Create your wish list in a home. This will help guide you and keep you positive.
EXPECT this to be a very worthwhile, but sometimes challenging process. There is a considerable amount of time, energy, and emotion that goes into buying your first home.
RESERVE time to deal with these precious resources!
PACE yourself. Our culture seems to think we need everything NOW. Be patient and wise in your purchases of furniture and accessories for your new home. We can truly reduce stress by simplifying!
HAVE FUN! Buying your first home will be a memorable, life changing experience. Keep your sense of humor!
If you are considering buying your first home in Spokane WA. I would love to meet with you in person.
(written by BethAnn Long, Realtor,)
Published on ActiveRain.com
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
Wednesday, April 1, 2009
What You Need to Know to Buy a Home Today
Don't let a sluggish economy get you down. There are reasons to shop for personal items—including a new home.
I recently saw an advertisement for a new car that said you could return the car in the first year if you lose your job. While there may not be that incentive for homes yet, some other perks might give you reason to start your housing search.
If you can afford to buy, consider making homeownership a goal this year, especially if you haven't owned a principal residence in three years prior to buying. The new stimulus package sweetens the deal for homebuyers who purchase a residence on or after January 1, 2009, and before December 1, 2009. The incentive is for first-time homebuyers who remain in their home for at least three years. It provides a credit for 10 percent of the home purchase price, up to an $8,000 limit. The credit can be taken on your 2008 or 2009 tax return.
If you close on a home after the April 15 tax deadline, you can apply for an extension provided that you close on your home before the extension deadline of October 15. If you're extra speedy and have already filed your 2008 return, don't worry — you can file an amendment to claim the credit. You have three years to do that. You'll need IRS Form 1040X to do that.
Taking the credit on your 2009 return or getting the benefit now, before filing your return, by adjusting your income wage withholding are also options.
The full credit applies to those first-time homebuyers whose modified adjusted income is less than $75,000 or $150,000 (filing jointly). The credit amount drops as your income rises. And if your income is over $95,000 or $170,000 (filing jointly) then you're out of luck—the credit is eliminated.
Be sure to speak to experts to ask questions as some other qualifications apply.
Yet another reason, you may want to shop around is to get in on the action while it's still a buyers' market. Others certainly see the U.S. as a stable place to invest. According to the Association of Foreign Investors (AFIRE), a survey released earlier this year showed that more than 53 percent of respondents ranked the "U.S. as the country providing the most stable and secure real estate investments."
Foreigners from China, Thailand, Vietnam, Mexico, Europe, and South America are traveling to the U.S. to see what real estate opportunities exist in the U.S. Areas such as Las Vegas, New York, and Miami have been infiltrated with foreigners who are buying now to take advantage of their stronger currency or the opportunity to stash their cash in a dollar-dominated place. While many are looking for commercial properties, some are vying for residential properties too.
"This is the greatest opportunity we've had in 50 years," says Billy Procida, president of William Procida, Inc., a turnaround management firm for middle market real estate companies. He says even though there is a lot of inventory on the market, certain properties will have less interest and be a better bargain.
"If you buy something that is pristine, painted, clean—brand new—you're going to be competing … . This is truly the time when the folks who are willing to roll up their sleeves [and do some work] will benefit from it," says Procida.
So if you're ready to buy but wondering if you can qualify for a loan, Procida recommends the following:
1. Put as much down on a home that you can afford or don't buy it. He says even if you can get a larger loan, don't risk it. "Buy within your means. Look how we got in this crisis," says Procida. He adds, "There are still people out there doing no income verification loans." Bottom line—buy what you can afford.
2. Check your credit. Procida says one of his family members found out that there was $20,000 of erroneously reported credit debt. "It's absolutely incorrect, but it was on there," says Procida.
3. Clean up your credit. "If you have a delinquency clean it up, says Procida. And he advises that you check your report once it's been cleaned up because sometimes the credit agencies neglect to update your credit report.
4. Be prepared. Get all your financial records such as two years of tax returns in order and have them handy to make the loan process go smoothly.
5. Liquidity is key. Don't go buy a car before you plan to purchase a home (even if you can return it). Having cash helps to show you are qualified to buy at the price point you want.
Written by: Phoebe Chongchua / Realty Times
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
I recently saw an advertisement for a new car that said you could return the car in the first year if you lose your job. While there may not be that incentive for homes yet, some other perks might give you reason to start your housing search.
If you can afford to buy, consider making homeownership a goal this year, especially if you haven't owned a principal residence in three years prior to buying. The new stimulus package sweetens the deal for homebuyers who purchase a residence on or after January 1, 2009, and before December 1, 2009. The incentive is for first-time homebuyers who remain in their home for at least three years. It provides a credit for 10 percent of the home purchase price, up to an $8,000 limit. The credit can be taken on your 2008 or 2009 tax return.
If you close on a home after the April 15 tax deadline, you can apply for an extension provided that you close on your home before the extension deadline of October 15. If you're extra speedy and have already filed your 2008 return, don't worry — you can file an amendment to claim the credit. You have three years to do that. You'll need IRS Form 1040X to do that.
Taking the credit on your 2009 return or getting the benefit now, before filing your return, by adjusting your income wage withholding are also options.
The full credit applies to those first-time homebuyers whose modified adjusted income is less than $75,000 or $150,000 (filing jointly). The credit amount drops as your income rises. And if your income is over $95,000 or $170,000 (filing jointly) then you're out of luck—the credit is eliminated.
Be sure to speak to experts to ask questions as some other qualifications apply.
Yet another reason, you may want to shop around is to get in on the action while it's still a buyers' market. Others certainly see the U.S. as a stable place to invest. According to the Association of Foreign Investors (AFIRE), a survey released earlier this year showed that more than 53 percent of respondents ranked the "U.S. as the country providing the most stable and secure real estate investments."
Foreigners from China, Thailand, Vietnam, Mexico, Europe, and South America are traveling to the U.S. to see what real estate opportunities exist in the U.S. Areas such as Las Vegas, New York, and Miami have been infiltrated with foreigners who are buying now to take advantage of their stronger currency or the opportunity to stash their cash in a dollar-dominated place. While many are looking for commercial properties, some are vying for residential properties too.
"This is the greatest opportunity we've had in 50 years," says Billy Procida, president of William Procida, Inc., a turnaround management firm for middle market real estate companies. He says even though there is a lot of inventory on the market, certain properties will have less interest and be a better bargain.
"If you buy something that is pristine, painted, clean—brand new—you're going to be competing … . This is truly the time when the folks who are willing to roll up their sleeves [and do some work] will benefit from it," says Procida.
So if you're ready to buy but wondering if you can qualify for a loan, Procida recommends the following:
1. Put as much down on a home that you can afford or don't buy it. He says even if you can get a larger loan, don't risk it. "Buy within your means. Look how we got in this crisis," says Procida. He adds, "There are still people out there doing no income verification loans." Bottom line—buy what you can afford.
2. Check your credit. Procida says one of his family members found out that there was $20,000 of erroneously reported credit debt. "It's absolutely incorrect, but it was on there," says Procida.
3. Clean up your credit. "If you have a delinquency clean it up, says Procida. And he advises that you check your report once it's been cleaned up because sometimes the credit agencies neglect to update your credit report.
4. Be prepared. Get all your financial records such as two years of tax returns in order and have them handy to make the loan process go smoothly.
5. Liquidity is key. Don't go buy a car before you plan to purchase a home (even if you can return it). Having cash helps to show you are qualified to buy at the price point you want.
Written by: Phoebe Chongchua / Realty Times
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