It's not everyday you go looking for a mortgage.
It's not a trip to the mall.
It's a methodical, step-by-step process requiring planning, time, effort and attention to details.
Here are some guidelines for beginners, especially first-time home buyers -- assuming you've already laid the groundwork by inspecting your credit report.
• Inspecting your credit report and getting it in the best shape possible is your first step to the best mortgage. In today's tight money world it behooves you to take the time necessary to carefully scrutinize your credit report and credit score to be prepared to explain to creditors any dings you can't fix.
• Shop around for a mortgage from a variety of sources to determine what's available. Shop mortgage brokers, mortgage lenders, banks and credit unions. Don't forget to examine your local and state mortgage programs as well as community service and housing agency mortgages and mortgage assistance programs.
• Obtain all loan cost information, not just the monthly mortgage payment and annual percentage rate (APR). Check the cost of points (in dollar amounts, not just number of points), broker fees, origination fees, underwriting fees, administrative costs, mortgage insurance, yield spread premiums, commissions, escrow and closing costs -- each and every cost associated with your mortgage. You need these numbers to make a fair comparison.
• Get an explanation for every fee you don't understand. Use the Federal Deposit Insurance Corporation's (FDIC) "Mortgage Shopping Worksheet" to help keep your costs in check.
• Check the loan terms for a variety of loans. Know what down payment you'll need, the term of the loan, whether the loan is a fixed rate mortgage (FRM) or an adjustable rate mortgage (ARM) and the specific terms of each. For ARMs, ask for the beginning rate, when and how often adjustments occur, how much adjustments could cost, and the ARM's ceiling rate.
• Be aggressive. Prepare to negotiate with the information you've gathered on the mortgage worksheet. The more information you have about each loan the move negotiating leverage you'll have. A pristine credit record can also give you an edge. Look particularly to quibble over points, yield spread premiums and other broker's fees or commissions. Don't be afraid to ask the lender or broker to waive or reduce one or more of its fees or to agree to a lower rate or fewer points. Make sure the lender or broker isn't just lowering one fee to raise another or lowering the rate to raise points. There's also no harm in asking lenders or brokers if they can give better terms than the original ones they quoted to you, especially if you've found better terms elsewhere.
• Once you are satisfied with the terms you have negotiated, consider a written lock-in from the lender or broker. The lock-in should include the rate that you have agreed upon, the period the lock-in lasts, the number of points to be paid and a lock on as many other costs and terms as possible.
• Also seek a written loan commitment that guarantees you the terms and costs you've locked. A loan commitment puts you ahead of the pack in the eyes of the home seller who wants to sell quickly.
Article published in Realty Times
Written by Broderick Perkins
March 25, 2010
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
Wednesday, March 31, 2010
Monday, March 29, 2010
Stunning Home in Gated Community in Lake Tahoe!
Great News for Buyers! If you are looking for a beautiful home in a private, gated community in Lake Tahoe...
We have the perfect property for you!
Enjoy the privacy of this stunning home, located in the prestigious Country Club Estates. One of seven custom homes, it offers beautifully landscaped grounds on a 1.11 acre parcel in a gorgeous park-like setting. The main level includes an impressive foyer, living room with a striking floor to ceiling river rock gas fireplace, wet bar and French doors opening to the lush backyard. The luxurious master suite boasts a lovely marble surrounded gas fireplace (which can also be enjoyed from the spa tub in the master bath), a private patio and master bath with steam shower, spa tub and a spacious walk-in closet. There are two additional bedroom suites on this level. On the upper level you will find a formal dining room, a beautiful bright gourmet kitchen featuring top-of-the-line appliances, granite countertops, Kitchen Island with cook top, breakfast nook, walk-in pantry and a wine room. The lower level includes a spacious media/family room with wet bar, a private patio, another bedroom suite and a convenient dumbwaiter off the garage. This grand residence has it all and is just minutes from the Hyatt, beaches, shopping, restaurants and all recreational facilities!
Call Us For Details!
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Friday, March 26, 2010
Moving In, Not Out: Multi-Generational Housing Growing
In some cultures it's very popular to have mothers-in-laws, grandparents, and even children and their children all living under the same roof. But in America an attitude of independence has prevailed and living in multi-generational households has just not been as popular.
Today, times are changing and multi-generational households are a burgeoning trend which is changing what buyers are looking for in a house. "There are a lot of people doubling up," says Barry Goggin, owner of Ronkonkoma.
According to a January poll by Coldwell Banker, 37 percent of its 2,360 agents polled noted increases in buyers who want to purchase homes that can accommodate multi-generational families. The poll also found that financial concerns were the primary reason for the 39 percent of buyers or sellers who were moving into multi-generational homes. That was followed by 29 percent who said the reason was health care issues, and 6 percent expressed tight family bonds as the motivator to combine households.
"There are times when there are young families moving back into a home because they can't afford their own home and the owners of the home will adapt [their home]," says Goggin.
He says that owners used to build an apartment on top of the home for the younger couple. But he says, these days, homeowners are going beyond the common conversion such as finishing a basement or converting the garage. "It seems to be more elaborate, but always keeping in mind what will be sellable in the future—not just to throw an apartment on the house which usually is a negative point when you try to sell a house (because of local regulations about two family homes), explains Goggin.
He recommends that if you're considering a home for multi-generational living purposes be sure to look for these four things.
1. Space. Obviously, the more people in the home, the more space is needed. Goggin says, if the home isn't the square-footage that you need, buyers should just make sure that there is a way to expand on the property so that the home still retains its value upon resale.
2. No Stairs. Sometimes finding a home that's a single story can be very difficult, especially in densely populated areas. However, fewer stairs is a big plus for multi-generational families. Even homes that have sunken living rooms are often remodeled for not just the aging-in-place generation but also the very young (crawling babies and barely-walking toddlers).
3. Full bedroom and bath on first floor. If you can't find a single-story home that you like, at least having a full bedroom and bath on the first floor is essential. These types of homes are also highly sought after because of the fact that they have multi-purpose rooms—used for everything from an elderly family member, a nanny, or an office. With many people out of work and starting their own business, home office space is a high priority in housing.
4. Communication. People living together can be in a very blissful harmony but, often, issues occur if they are not stated and agreed upon beforehand. Looking for a home together can be challenging depending on mobility issues or, if small children are involved, it can lengthen the housing-hunt process. That doesn't mean their needs shouldn't be addressed.
It's a good idea to have several conversations to discuss the needs, chores, obligations, and expectations of all those who will be living in the multi-generational living home. Having this clarity ahead of time will allow you to shop for the most appropriate home as well as have a peaceful living arrangement beyond the purchase of the house.
This article was published in Realty Times
Written by: Phoebe Chongchua, March 26, 2010
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Today, times are changing and multi-generational households are a burgeoning trend which is changing what buyers are looking for in a house. "There are a lot of people doubling up," says Barry Goggin, owner of Ronkonkoma.
According to a January poll by Coldwell Banker, 37 percent of its 2,360 agents polled noted increases in buyers who want to purchase homes that can accommodate multi-generational families. The poll also found that financial concerns were the primary reason for the 39 percent of buyers or sellers who were moving into multi-generational homes. That was followed by 29 percent who said the reason was health care issues, and 6 percent expressed tight family bonds as the motivator to combine households.
"There are times when there are young families moving back into a home because they can't afford their own home and the owners of the home will adapt [their home]," says Goggin.
He says that owners used to build an apartment on top of the home for the younger couple. But he says, these days, homeowners are going beyond the common conversion such as finishing a basement or converting the garage. "It seems to be more elaborate, but always keeping in mind what will be sellable in the future—not just to throw an apartment on the house which usually is a negative point when you try to sell a house (because of local regulations about two family homes), explains Goggin.
He recommends that if you're considering a home for multi-generational living purposes be sure to look for these four things.
1. Space. Obviously, the more people in the home, the more space is needed. Goggin says, if the home isn't the square-footage that you need, buyers should just make sure that there is a way to expand on the property so that the home still retains its value upon resale.
2. No Stairs. Sometimes finding a home that's a single story can be very difficult, especially in densely populated areas. However, fewer stairs is a big plus for multi-generational families. Even homes that have sunken living rooms are often remodeled for not just the aging-in-place generation but also the very young (crawling babies and barely-walking toddlers).
3. Full bedroom and bath on first floor. If you can't find a single-story home that you like, at least having a full bedroom and bath on the first floor is essential. These types of homes are also highly sought after because of the fact that they have multi-purpose rooms—used for everything from an elderly family member, a nanny, or an office. With many people out of work and starting their own business, home office space is a high priority in housing.
4. Communication. People living together can be in a very blissful harmony but, often, issues occur if they are not stated and agreed upon beforehand. Looking for a home together can be challenging depending on mobility issues or, if small children are involved, it can lengthen the housing-hunt process. That doesn't mean their needs shouldn't be addressed.
It's a good idea to have several conversations to discuss the needs, chores, obligations, and expectations of all those who will be living in the multi-generational living home. Having this clarity ahead of time will allow you to shop for the most appropriate home as well as have a peaceful living arrangement beyond the purchase of the house.
This article was published in Realty Times
Written by: Phoebe Chongchua, March 26, 2010
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Wednesday, March 24, 2010
Are You Looking For Property In Lake Tahoe?
Great News for Buyers!If you are looking for property in Lake Tahoe...We have the perfect solution for you!
Fantastic and close to the 11th Fairway of the Championship Golf Course, this great condo offers two bedrooms, two baths, and a spacious sleeper loft! Cathedral beamed ceilings, sky lighting and large windows create an open and bright feeling on the upper level. A generous deck off of the living room highlights Incline’s tasteful views as the conforming wood stove located inside sets the stage for a welcoming mountain ambiance. The guest master, located on the entry level, also includes an enclosed seating area for a timely retreat. With a finished basement and spacious two car garage this condo offers all the convenience of a home. Close to golfing, beaches, shopping and much more, all this could be yours because the price is certainly right!
Call Us For Details!
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Monday, March 22, 2010
Pre-Qualifying for a Mortgage
One of the first steps to take as a potential home buyer is to get pre-qualified for a loan. This step helps both you and your lender learn just how much home you can afford. And you should begin this process before you even start looking for a home.
According to the Federal Housing Administration (FHA), their pre-qualification essentials include:
*Having a steady employment history, at least two years with the same employer.
*Consistent or increasing income over the past two years.
*Credit report should be in good standing with less than two thirty day late payments in the two years.
*Any bankruptcy on record must be at least two years old with good credit for the two consecutive years.
*Any foreclosure must be at least three years old with good credit for the past three years.
*Mortgage payment qualified for must be approximately 30 percent of your total monthly gross income.
Other lenders' ideas regarding pre-qualification are all similar to those outlined above. A mortgage lender will look at your credit report, earnings, debts, and savings in order to see how much home you really can afford.
Why is this important? In recent years there has been a “mortgage crisis,” where the industry was rampant with fraud and with loans that put homeowners into situations they could not afford. As payments rose, homeowners found themselves unable to meet their monthly obligations. According to Realtytrac.com and their U.S. Foreclosure Market Report, in January 2010, one in every 409 households in the country had received a foreclosure filing.
Since pre-qualification for a home loan typically costs you nothing, but gives you both a goal of what homes are in your affordability range, as well as how much money you should look to have saved for a downpayment, you can hardly wait to take this step.
What if the home you want is out of your reach? Experts recommend reducing your debt and saving up a larger amount for your down payment. Let's say your dream home is $225,000, but you only qualify for a $180,000 loan. If you have a downpayment of $45,000, then you are ready to make a move!
During the pre-qualification process, you will be expected to provide the following information:
*your gross monthly income
*your total monthly payments (car payments, credit cards minimums, child support payments, student loan payments, any other monthly debts)
The lender will be looking to see that your debt to income is below about 40 percent, and the lower the better. So, if you are looking to buy in the near future, be sure to talk to your lender soon!
Published on Realty Times
Written by Carla L. Davis
March 8, 2010
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
According to the Federal Housing Administration (FHA), their pre-qualification essentials include:
*Having a steady employment history, at least two years with the same employer.
*Consistent or increasing income over the past two years.
*Credit report should be in good standing with less than two thirty day late payments in the two years.
*Any bankruptcy on record must be at least two years old with good credit for the two consecutive years.
*Any foreclosure must be at least three years old with good credit for the past three years.
*Mortgage payment qualified for must be approximately 30 percent of your total monthly gross income.
Other lenders' ideas regarding pre-qualification are all similar to those outlined above. A mortgage lender will look at your credit report, earnings, debts, and savings in order to see how much home you really can afford.
Why is this important? In recent years there has been a “mortgage crisis,” where the industry was rampant with fraud and with loans that put homeowners into situations they could not afford. As payments rose, homeowners found themselves unable to meet their monthly obligations. According to Realtytrac.com and their U.S. Foreclosure Market Report, in January 2010, one in every 409 households in the country had received a foreclosure filing.
Since pre-qualification for a home loan typically costs you nothing, but gives you both a goal of what homes are in your affordability range, as well as how much money you should look to have saved for a downpayment, you can hardly wait to take this step.
What if the home you want is out of your reach? Experts recommend reducing your debt and saving up a larger amount for your down payment. Let's say your dream home is $225,000, but you only qualify for a $180,000 loan. If you have a downpayment of $45,000, then you are ready to make a move!
During the pre-qualification process, you will be expected to provide the following information:
*your gross monthly income
*your total monthly payments (car payments, credit cards minimums, child support payments, student loan payments, any other monthly debts)
The lender will be looking to see that your debt to income is below about 40 percent, and the lower the better. So, if you are looking to buy in the near future, be sure to talk to your lender soon!
Published on Realty Times
Written by Carla L. Davis
March 8, 2010
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
Friday, March 19, 2010
Are You Looking For Property In Lake Tahoe?
Great News for Buyers! If you are looking for a fantastic opportunity in Lake Tahoe...We have the perfect solution for you!
This could be the perfect opportunity you are looking for! On the entry level there is a commercial space approximately 800 sq. ft. which includes a half bath. The condo upstairs is approximately 1,288 sq. ft. with living room, kitchen, dining area, two bedrooms, two baths, utility closet with stack washer and dryer, and a large loft area. The kitchen and bathrooms have been remodeled and there are designer touches both top and bottom. The living room features a wood burning stone fireplace and opens to a large deck overlooking the courtyard. Live upstairs and walk downstairs to your business, or you may wish to use one and rent the other. Its perfect location is situated one block from Lake Tahoe, across from the Hyatt and surrounded by restaurants. This is a fantastic opportunity with many options!
Call Us For Details!
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Wednesday, March 17, 2010
Have an Eco-Friendly Home? Make Sure Buyers Know It
In tight real estate markets one sure thing is that sellers have to highlight the finest qualities of their homes. Yet, sometimes the very benefits buyers might be interested in are overlooked.
Sometimes sellers forget to mention important upgrades and other times the listing services used make it difficult for buyers to search for green properties. While statistics show that buyers won't necessarily chose an eco-friendly home over a standard one simply because it's green, they can be influenced to purchase the former if the home will save them money. There are a few areas of a home that can really help save money, but the sources of the savings are hidden in the walls and roof. "Insulation is relatively inexpensive for the return on investment. You will save the most money by doing a lot of insulation in your house," says Steven Mark Design Consultant at Marrokal Design & Remodeling.
The San Diego-based remodeling company uses green materials like recycled blue jeans that are turned into insulation as well as special roofing to help lower the energy costs by allowing heating and air conditioning systems to work less to keep the home comfortable.
"On our roof sheathing we're using a special plywood that has a little layer of metal in it that reflects the UV rays before they go into your attic," says Mark. He says by using this special radiant barrier plywood the attic will be considerably cooler. "The attic is going to be 20 or 30 degrees cooler in the summertime which then means the insulation and air conditioner and everything else you need to get your living space to a comfortable temperature is now reduced," says Mark.
Of course, buyers should be told about all those energy-saving appliances that you might have installed over the years. For instance, say there are two decades-old homes on the market, but the first houses old appliances and the second features new energy-saving appliances. The upgrades in the second home are a distinct advantage that should be made very clear to buyers. While this seems obvious, sometimes sellers neglect to mention all the perks.
Remember, the things that aren't always visible can save a surprising amount. Tankless water heaters, for example, are becoming more in demand. That's probably because you can have as much as 30 percent savings of a normal utility bill using a tankless water heater according to Dennis Hargraves of El Cajon Heating & Plumbing Supply. Additionally, consumers can get big rebates.
"Tankless water heaters … they can get up to 60 percent of their installation and cost of the heater it could be up to $1,500 in rebates or tax credits," says Hargraves.
Special water-saving shower fixtures and low-flush toilets can also be enticing to buyers. If you haven't already installed them, consider replacing an old toilet with a more efficient one. Also, don't worry about the low-flush not being effective, Hargraves says the functionality has greatly improved; no need for double flushing. Plus, there's incentive to install them.
"There are vouchers available so a customer can receive up to $50 to $100 per toilet by going to the 1.28 flushes versus the others," says Hargraves.
It's a good idea to keep a three-ring binder to help you remember all the upgrades and eco-friendly additions when it comes time to sell your home. Be sure to include the sales receipts, product warranties, operating instructions, and any other pertinent notes into the binder. Don't forget to review the material in your binder so that you're prepared to highlight your green improvements when you meet with your real estate agent.
Published on Realty Times
Written by Phoebe Chongchua
March 12, 2010
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Sometimes sellers forget to mention important upgrades and other times the listing services used make it difficult for buyers to search for green properties. While statistics show that buyers won't necessarily chose an eco-friendly home over a standard one simply because it's green, they can be influenced to purchase the former if the home will save them money. There are a few areas of a home that can really help save money, but the sources of the savings are hidden in the walls and roof. "Insulation is relatively inexpensive for the return on investment. You will save the most money by doing a lot of insulation in your house," says Steven Mark Design Consultant at Marrokal Design & Remodeling.
The San Diego-based remodeling company uses green materials like recycled blue jeans that are turned into insulation as well as special roofing to help lower the energy costs by allowing heating and air conditioning systems to work less to keep the home comfortable.
"On our roof sheathing we're using a special plywood that has a little layer of metal in it that reflects the UV rays before they go into your attic," says Mark. He says by using this special radiant barrier plywood the attic will be considerably cooler. "The attic is going to be 20 or 30 degrees cooler in the summertime which then means the insulation and air conditioner and everything else you need to get your living space to a comfortable temperature is now reduced," says Mark.
Of course, buyers should be told about all those energy-saving appliances that you might have installed over the years. For instance, say there are two decades-old homes on the market, but the first houses old appliances and the second features new energy-saving appliances. The upgrades in the second home are a distinct advantage that should be made very clear to buyers. While this seems obvious, sometimes sellers neglect to mention all the perks.
Remember, the things that aren't always visible can save a surprising amount. Tankless water heaters, for example, are becoming more in demand. That's probably because you can have as much as 30 percent savings of a normal utility bill using a tankless water heater according to Dennis Hargraves of El Cajon Heating & Plumbing Supply. Additionally, consumers can get big rebates.
"Tankless water heaters … they can get up to 60 percent of their installation and cost of the heater it could be up to $1,500 in rebates or tax credits," says Hargraves.
Special water-saving shower fixtures and low-flush toilets can also be enticing to buyers. If you haven't already installed them, consider replacing an old toilet with a more efficient one. Also, don't worry about the low-flush not being effective, Hargraves says the functionality has greatly improved; no need for double flushing. Plus, there's incentive to install them.
"There are vouchers available so a customer can receive up to $50 to $100 per toilet by going to the 1.28 flushes versus the others," says Hargraves.
It's a good idea to keep a three-ring binder to help you remember all the upgrades and eco-friendly additions when it comes time to sell your home. Be sure to include the sales receipts, product warranties, operating instructions, and any other pertinent notes into the binder. Don't forget to review the material in your binder so that you're prepared to highlight your green improvements when you meet with your real estate agent.
Published on Realty Times
Written by Phoebe Chongchua
March 12, 2010
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Monday, March 15, 2010
Moving Advice: Moving with Pets
Experts agree that pets thrive on routine. But how can that routine be maintained during a move? There are some simple steps that you can take to make the transition from old home to new home easy on you and your pet.
The first step is to visit your current veterinarian. If you are moving out of the area, be sure to request your pet's medical files, this way your new vet will know of any conditions your pet has been treated for and when they'll be due for their next vaccinations. Be sure that if your pet is on any medications, that you'll have enough of the needed prescriptions to last until you visit your new vet.
While you're at the vet, consider microchipping your pet. A microchip is a small transponder, as small as a grain of rice, that is implanted just under the pet's skin. The Humane Society says, “Microchips provide an extra level of protection in case your pet loses his collar and tags.” The cost is relatively inexpensive, especially when you consider that one chip can last up to 25 years. Along these same lines, update your pets ID tags with your new address or phone number if necessary.
When you are beginning the actual process of moving boxes and transferring your belongings to your new residence, consider first prepping, a pet friendly area in your current home, and then in your new home. You can designate one room that will be out of the way of movers. Fill the room with the pet's favorite toys and bedding, as well as their food, water, and if applicable, litter box. Your home is your pet's sanctuary, and for the time being, this room will be their connection to this.
Once you're living in your new home with your pet, the best thing you can do is maintain your routine. If you usually walk your pet in the mornings, make the time to continue this tradition. If you come home at lunches to let your dog out, be sure that either you or a reliable pet walker are there for your dog. This is also not a time to change your animal's eating habits. Keep with the same brand and type of food as before the move.
And finally, you'll need to search out your new hot spots. This means pet supply stores, veterinary offices, dog parks, and pet sitter and walker servicers.
If you are new to your area, feel free to ask your real estate agent for recommendations for a new vet, as well as where the aforementioned local hot spots might be, such as local establishments that are pet friendly.
This article was published in Realty Times
Written by: Carla L. Davis, March 15, 2010
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
The first step is to visit your current veterinarian. If you are moving out of the area, be sure to request your pet's medical files, this way your new vet will know of any conditions your pet has been treated for and when they'll be due for their next vaccinations. Be sure that if your pet is on any medications, that you'll have enough of the needed prescriptions to last until you visit your new vet.
While you're at the vet, consider microchipping your pet. A microchip is a small transponder, as small as a grain of rice, that is implanted just under the pet's skin. The Humane Society says, “Microchips provide an extra level of protection in case your pet loses his collar and tags.” The cost is relatively inexpensive, especially when you consider that one chip can last up to 25 years. Along these same lines, update your pets ID tags with your new address or phone number if necessary.
When you are beginning the actual process of moving boxes and transferring your belongings to your new residence, consider first prepping, a pet friendly area in your current home, and then in your new home. You can designate one room that will be out of the way of movers. Fill the room with the pet's favorite toys and bedding, as well as their food, water, and if applicable, litter box. Your home is your pet's sanctuary, and for the time being, this room will be their connection to this.
Once you're living in your new home with your pet, the best thing you can do is maintain your routine. If you usually walk your pet in the mornings, make the time to continue this tradition. If you come home at lunches to let your dog out, be sure that either you or a reliable pet walker are there for your dog. This is also not a time to change your animal's eating habits. Keep with the same brand and type of food as before the move.
And finally, you'll need to search out your new hot spots. This means pet supply stores, veterinary offices, dog parks, and pet sitter and walker servicers.
If you are new to your area, feel free to ask your real estate agent for recommendations for a new vet, as well as where the aforementioned local hot spots might be, such as local establishments that are pet friendly.
This article was published in Realty Times
Written by: Carla L. Davis, March 15, 2010
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Friday, March 12, 2010
Mortgage Rates Drop Slightly in Freddie Mac Weekly Survey
McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 4.95 percent with an average 0.7 point for the week ending March 11, 2010, down from last week when it averaged 4.97 percent. Last year at this time, the 30-year FRM averaged 5.03 percent.
The 15-year FRM this week averaged 4.32 percent with an average 0.7 point, down from last week when it averaged 4.33 percent. A year ago at this time, the 15-year FRM averaged 4.64 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.05 percent this week, with an average 0.6 point, down from last week when it averaged 4.11 percent. A year ago, the 5-year ARM averaged 4.99 percent.
The 1-year Treasury-indexed ARM averaged 4.22 percent this week with an average 0.6 point, down from last week when it averaged 4.27 percent. At this time last year, the 1-year ARM averaged 4.80 percent.
"During a light week of mixed economic reports, mortgage rates eased somewhat," said Frank Nothaft, Freddie Mac vice president and chief economist. "Pending existing home sales fell 7.6 percent in January, well below the market consensus of a 1 percent gain. Meanwhile, the economy lost only 36,000 jobs in February, fewer than market forecasts, and the unemployment rate held steady at 9.7 percent. In addition, revisions added a net 35,000 workers to January and December combined."
This article was published in Realty Times, March 12, 2010
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
The 15-year FRM this week averaged 4.32 percent with an average 0.7 point, down from last week when it averaged 4.33 percent. A year ago at this time, the 15-year FRM averaged 4.64 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.05 percent this week, with an average 0.6 point, down from last week when it averaged 4.11 percent. A year ago, the 5-year ARM averaged 4.99 percent.
The 1-year Treasury-indexed ARM averaged 4.22 percent this week with an average 0.6 point, down from last week when it averaged 4.27 percent. At this time last year, the 1-year ARM averaged 4.80 percent.
"During a light week of mixed economic reports, mortgage rates eased somewhat," said Frank Nothaft, Freddie Mac vice president and chief economist. "Pending existing home sales fell 7.6 percent in January, well below the market consensus of a 1 percent gain. Meanwhile, the economy lost only 36,000 jobs in February, fewer than market forecasts, and the unemployment rate held steady at 9.7 percent. In addition, revisions added a net 35,000 workers to January and December combined."
This article was published in Realty Times, March 12, 2010
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Wednesday, March 10, 2010
The House Hunter's Toolkit
It may not feel like Spring in your town, but for most of the United States, we've turned a corner. The sun is shining, the snow is melting, and the crocuses are poking their heads up through the ground; a brutal winter is winding down.
Beside your tulips, the incipient balmy weather is likely to bring another species out of hibernation—househunticus americanus, commonly known as the North American house hunter. These intrepid souls, no longer trapped indoors by snow banks and freezing rain, will soon begin venturing out in search of new lodging. And like all explorers, North American house hunters must be properly outfitted for their searches.
First and foremost, you house hunters need a means to plan their search. Finding a Realtor you like is key, as Realtors are invaluable guides who will provide you with detailed advice on how to search for and buy houses. After finding a Realtor, you should ask her to show you around Realtor.com, which allows you to search for home listings geographically, as well as by price, type of home and number of bedrooms and bathrooms. Realtor.com also has invaluable information on home financing, links to movers and tips on owning and maintaining your home.
It's also a good idea to buy a map of the city where you're planning your home search. Sites like Google Maps and Mapquest can help you plan your search route, but nothing beats an old-fashioned foldable map for getting a sense of your potential commute and the layout of your future neighborhood. For that authentic explorer vibe, you can even tack it up on the wall and mark the locations of the homes you find listed online.
Once you're actually on your search, always keep a pad of paper and a writing utensil with you. These are useful for jotting down homes you see with For Sale signs on their lawn. By the way, if you find a home for sale by a company other than your Realtor's, pass the address and phone number onto your Realtor so they can dig up the relevant information about the house for you.
You should also keep your pad and pen with you once you actually start touring homes. Take notes of things you like and dislike about the homes you see; this is important because you're likely to look at a lot of homes, and they're likely to start running together in your mind. Taking notes will not only keep you engaged and interested in the homes you're looking at, and will give you a frame of reference when you think back over your search to start narrowing your choices.
Finally, house hunters should always take a digital camera with them on their search. Like your notes, pictures will help you remember, and keep separate in your mind, all the houses you've looked at over the course of your search. You should also use your camera to snap pictures of specific things you like or dislike about a home. Again, these will help you make your final decision after narrowing down the houses you're particularly interested in.
That may seem like a short list—Realtor.com, map, paper and pencil, and camera—but with those tools your home search will be a breeze. Good luck, and happy hunting!
Written by Drew Johnson
March 9, 2010
Beside your tulips, the incipient balmy weather is likely to bring another species out of hibernation—househunticus americanus, commonly known as the North American house hunter. These intrepid souls, no longer trapped indoors by snow banks and freezing rain, will soon begin venturing out in search of new lodging. And like all explorers, North American house hunters must be properly outfitted for their searches.
First and foremost, you house hunters need a means to plan their search. Finding a Realtor you like is key, as Realtors are invaluable guides who will provide you with detailed advice on how to search for and buy houses. After finding a Realtor, you should ask her to show you around Realtor.com, which allows you to search for home listings geographically, as well as by price, type of home and number of bedrooms and bathrooms. Realtor.com also has invaluable information on home financing, links to movers and tips on owning and maintaining your home.
It's also a good idea to buy a map of the city where you're planning your home search. Sites like Google Maps and Mapquest can help you plan your search route, but nothing beats an old-fashioned foldable map for getting a sense of your potential commute and the layout of your future neighborhood. For that authentic explorer vibe, you can even tack it up on the wall and mark the locations of the homes you find listed online.
Once you're actually on your search, always keep a pad of paper and a writing utensil with you. These are useful for jotting down homes you see with For Sale signs on their lawn. By the way, if you find a home for sale by a company other than your Realtor's, pass the address and phone number onto your Realtor so they can dig up the relevant information about the house for you.
You should also keep your pad and pen with you once you actually start touring homes. Take notes of things you like and dislike about the homes you see; this is important because you're likely to look at a lot of homes, and they're likely to start running together in your mind. Taking notes will not only keep you engaged and interested in the homes you're looking at, and will give you a frame of reference when you think back over your search to start narrowing your choices.
Finally, house hunters should always take a digital camera with them on their search. Like your notes, pictures will help you remember, and keep separate in your mind, all the houses you've looked at over the course of your search. You should also use your camera to snap pictures of specific things you like or dislike about a home. Again, these will help you make your final decision after narrowing down the houses you're particularly interested in.
That may seem like a short list—Realtor.com, map, paper and pencil, and camera—but with those tools your home search will be a breeze. Good luck, and happy hunting!
Written by Drew Johnson
March 9, 2010
About the Author: Drew Johnson
is a writer living in Washington, DC.
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
Monday, March 8, 2010
Low Rates Help Make Home Buying More Affordable
McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 4.97 percent with an average 0.7 point for the week ending March 4, 2010, down from last week when it averaged 5.05 percent. Last year at this time, the 30-year FRM averaged 5.15 percent.
The 15-year FRM this week averaged 4.33 percent with an average 0.7 point, down from last week when it averaged 4.40 percent. A year ago at this time, the 15-year FRM averaged 4.72 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.11 percent this week, with an average 0.6 point, down from last week when it averaged 4.16 percent. A year ago, the 5-year ARM averaged 5.08 percent.
The 1-year Treasury-indexed ARM averaged 4.27 percent this week with an average 0.6 point, up from last week when it averaged 4.15 percent. At this time last year, the 1-year ARM averaged 4.86 percent.
"30-year fixed mortgages fell below 5 percent to match levels seen two weeks ago and are helping to maintain affordable home-purchase conditions," said Frank Nothaft, Freddie Mac vice president and chief economist. "In fact, monthly principal and interest mortgage payments for a typical family buying a median-priced home of $163,800 were just $709 in January, the lowest amount since February 1998, according to the National Association of Realtors® . For first-time homebuyers, the fourth quarter of 2009 was the third most affordable quarter since 1981 behind the first and second quarter of 2009."
"The federal tax credit for homebuyers, which expires on April 30th, may make housing even more affordable for some families already in the middle of the home buying process. In fact, the Federal Reserve's March 3rd regional economic review noted that several districts attributed stronger home sales to the homebuyer tax credit."
This article was published in Realty Times, Written by Realty Times Staff, March 5, 2010
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Friday, March 5, 2010
Tax Tips for 2010
As tax time nears, we’re sure you have questions.
Have you heard the rumors of a kinder, gentler, more helpful IRS? THEY MIGHT JUST BE TRUE.
We’ve compiled the best tax tips given by the IRS. EVERY LITTLE BIT HELPS.
Seven Important Facts about Claiming the First-Time Homebuyer Credit If you purchased a home in 2009 or early 2010, you may be eligible to claim the First-Time Homebuyer Credit, whether you are a first-time homebuyer or a long-time resident purchasing a new home. Here are seven things the IRS wants you to know about claiming the credit:
1. You must buy — or enter into a binding contract to buy — a principal residence located in the United States on or before April 30, 2010. If you enter into a binding contract by April 30, 2010, you must close on the home on or before June 30, 2010.
2. To be considered a first-time homebuyer, you and your spouse — if you are married — must not have jointly or separately owned another principal residence during the three years prior to the date of purchase.
3. To be considered a long-time resident homebuyer you and your spouse—if you are married — must have lived in the same principal residence for any consecutive five-year period during the eight-year period that ended on the date the new home is purchased. Additionally, your settlement date must be after November 6, 2009.
4. The maximum credit for a first-time homebuyer is $8,000. The maximum credit for a long-time resident homebuyer is $6,500.
5. You must file a paper return and attach Form 5405, First-Time Homebuyer Credit and Repayment of the Credit with additional documents to verify the purchase. Therefore, if you claim the credit you will not be able to file electronically.
6. New homebuyers must attach a copy of a properly executed settlement statement used to complete such purchase. Buyers of a newly constructed home, where a settlement statement is not available, must attach a copy of the dated certificate of occupancy. Mobile home purchasers who are unable to get a settlement statement must attach a copy of the retail sales contract.
7. If you are a long-time resident claiming the credit, the IRS recommends that you also attach any documentation covering the five-consecutive-year period, including Form 1098, Mortgage Interest Statement or substitute mortgage interest statements, property tax records or homeowner’s insurance records.
This article appeared in the March Edition of the Coldwell Banker Select Real Estate E-Newsletter
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Have you heard the rumors of a kinder, gentler, more helpful IRS? THEY MIGHT JUST BE TRUE.
We’ve compiled the best tax tips given by the IRS. EVERY LITTLE BIT HELPS.
Seven Important Facts about Claiming the First-Time Homebuyer Credit If you purchased a home in 2009 or early 2010, you may be eligible to claim the First-Time Homebuyer Credit, whether you are a first-time homebuyer or a long-time resident purchasing a new home. Here are seven things the IRS wants you to know about claiming the credit:
1. You must buy — or enter into a binding contract to buy — a principal residence located in the United States on or before April 30, 2010. If you enter into a binding contract by April 30, 2010, you must close on the home on or before June 30, 2010.
2. To be considered a first-time homebuyer, you and your spouse — if you are married — must not have jointly or separately owned another principal residence during the three years prior to the date of purchase.
3. To be considered a long-time resident homebuyer you and your spouse—if you are married — must have lived in the same principal residence for any consecutive five-year period during the eight-year period that ended on the date the new home is purchased. Additionally, your settlement date must be after November 6, 2009.
4. The maximum credit for a first-time homebuyer is $8,000. The maximum credit for a long-time resident homebuyer is $6,500.
5. You must file a paper return and attach Form 5405, First-Time Homebuyer Credit and Repayment of the Credit with additional documents to verify the purchase. Therefore, if you claim the credit you will not be able to file electronically.
6. New homebuyers must attach a copy of a properly executed settlement statement used to complete such purchase. Buyers of a newly constructed home, where a settlement statement is not available, must attach a copy of the dated certificate of occupancy. Mobile home purchasers who are unable to get a settlement statement must attach a copy of the retail sales contract.
7. If you are a long-time resident claiming the credit, the IRS recommends that you also attach any documentation covering the five-consecutive-year period, including Form 1098, Mortgage Interest Statement or substitute mortgage interest statements, property tax records or homeowner’s insurance records.
This article appeared in the March Edition of the Coldwell Banker Select Real Estate E-Newsletter
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Wednesday, March 3, 2010
The Offer: There's More to It Than Just The Price
Fixating on price in real estate may cost you the deal:
Sellers who decide that a specific dollar figure will buy their home and won't budge from that bottom line may sell themselves short.
Buyers who drop out of a transaction for a property they love because the seller's counter-offer shocks them may be quitting before they have really started negotiating.
When a buyer makes an offer to purchase a house, condominium unit or commercial property, the purchase price is a prime consideration, but it represents only part of the total value offered to the seller. Problems may arise for both sides of the transaction when this fact is forgotten.
Value Elements in an Offer
The value expressed in a buyer's offer to purchase, or in a seller's offer to sell, involves 5 key elements -- a financial package:
Purchase Price, the stated amount of dollars offered by the buyer, represents a significant contributor to value, but there are other important factors which can reduce the amount the seller receives or which can compromise the transaction. It's not the purchase price, but the net proceeds of the sale that sellers -- and savvy buyers -- should concentrate on.
Closing Date, or the day ownership changes hands and the seller receives the money, can represent cost or value to both parties. Savvy buyers usually attempt to meet the seller's preferred moving date, especially when the seller has committed to purchasing another property or needs the proceeds of the sale on a specific date. For instance, a closing before that date may be expensive because the seller would have to move out and store everything until they could move into their new home. That double move and the inconvenience represent out-of-pocket costs and time lost that make the actual purchase price lower than stated. A closing date later than the seller's preferred date may leave the seller owning two homes - and paying off two mortgages - at once. The seller may incur extra costs in arranging bridge financing to meet legal obligations to close on their new home before they receive proceeds from the sale of their current home. Choice of closing date may represent costs or value to the buyer as well. Balancing this reality for both parties is key in negotiation.
Inclusions and Exclusions to the sale also represent costs and value for both parties. Appliances, heating systems and draperies are common seller inclusions designed to boost value for buyers. If warranties for everything from a new roof or solar panels to new appliances cannot be transferred to a buyer, these items become "second-hand"and will probably represent less value to buyers. Buyers are also free to include excluded seller items, like an antique light fixture, in the offer to purchase. Deals have been lost to disagreements over light fixtures, fireplace accessories and vintage furnishings, so prudent sellers remove contentious items before listing. A buyer may offer less than list price and ask for nothing; a seller could sign back for more money and include items to sweeten the pot. Value is very subjective for these non-real-estate items and that's where negotiations can get heated.
Terms and Conditions are clauses in the offer which cover "what if" risks for one party and the obligations of both parties. These clauses detail what the buyer asks the seller to do for the purchase price. Arrange a survey or include a treasured light fixture? Sellers can create conditions in an offer to sell, but usually conditions are of greater concern to the buyer, particularly if approval of a third partly like a lender or city planning department is involved in determining the property's suitability. Conditions to arrange financing or a home inspection are among the "ifs" that define the offer to purchase. The degree of uncertainty attached to the conditions and the buyer's related ability to close effect the value of an offer. For instance, a buyer who is pre-approved for a mortgage of sufficient size offers less risk to a seller. However, if the purchase price is significantly-above market value, the lender may not approve the mortgage, so a condition for financing is essential to protect all parties. A full-price offer with conditions that will be difficult to meet may hold less value than an under-list-price offer with no conditions. Alternatively, if the conditions are merely formalities, the conditional offer could represent greater value. Would you recognize the difference if you were the seller? That's where the expertise of the real estate professionals involved becomes valuable...
Intent and Sincerity are vital aspects of an offer although difficult to quantify. How determined is the buyer to buy, and why? How determined is the seller to sell? If either party changes their mind after the contract exists and before the closing date, the injured party has remedies in court. These legal steps may not make up for lost time and, perhaps, a missed market. An investor or flipper may decide to cut losses and bail out of the deal if the market drops significantly before closing. A seller may have second thoughts if their plans to move fall through. For both parties, value should lie in the certainty that the other party will close in spite of market shifts.
Yes, price matters, but there's a lot more involved in creating an offer that demands to be accepted. That's why an experienced real estate professional is a valuable contributor to success. Professionals can calculate, or at least estimate, the seller's net proceeds after costs related to the offer and deduction of commission. This information helps the seller accurately evaluate an offer to purchase. Understanding cost and benefit for all elements of an offer helps a buyer intent on ownership to create the best financial package possible.
Tip: Re-read this article when you are ready to make an offer, counter an offer or accept one. This will ensure value is visible to you on all levels before you decide to walk away or sign on the dotted.
This article was published in Realty Times
Written by: PJ Wade
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Sellers who decide that a specific dollar figure will buy their home and won't budge from that bottom line may sell themselves short.
Buyers who drop out of a transaction for a property they love because the seller's counter-offer shocks them may be quitting before they have really started negotiating.
When a buyer makes an offer to purchase a house, condominium unit or commercial property, the purchase price is a prime consideration, but it represents only part of the total value offered to the seller. Problems may arise for both sides of the transaction when this fact is forgotten.
Value Elements in an Offer
The value expressed in a buyer's offer to purchase, or in a seller's offer to sell, involves 5 key elements -- a financial package:
Purchase Price, the stated amount of dollars offered by the buyer, represents a significant contributor to value, but there are other important factors which can reduce the amount the seller receives or which can compromise the transaction. It's not the purchase price, but the net proceeds of the sale that sellers -- and savvy buyers -- should concentrate on.
Closing Date, or the day ownership changes hands and the seller receives the money, can represent cost or value to both parties. Savvy buyers usually attempt to meet the seller's preferred moving date, especially when the seller has committed to purchasing another property or needs the proceeds of the sale on a specific date. For instance, a closing before that date may be expensive because the seller would have to move out and store everything until they could move into their new home. That double move and the inconvenience represent out-of-pocket costs and time lost that make the actual purchase price lower than stated. A closing date later than the seller's preferred date may leave the seller owning two homes - and paying off two mortgages - at once. The seller may incur extra costs in arranging bridge financing to meet legal obligations to close on their new home before they receive proceeds from the sale of their current home. Choice of closing date may represent costs or value to the buyer as well. Balancing this reality for both parties is key in negotiation.
Inclusions and Exclusions to the sale also represent costs and value for both parties. Appliances, heating systems and draperies are common seller inclusions designed to boost value for buyers. If warranties for everything from a new roof or solar panels to new appliances cannot be transferred to a buyer, these items become "second-hand"and will probably represent less value to buyers. Buyers are also free to include excluded seller items, like an antique light fixture, in the offer to purchase. Deals have been lost to disagreements over light fixtures, fireplace accessories and vintage furnishings, so prudent sellers remove contentious items before listing. A buyer may offer less than list price and ask for nothing; a seller could sign back for more money and include items to sweeten the pot. Value is very subjective for these non-real-estate items and that's where negotiations can get heated.
Terms and Conditions are clauses in the offer which cover "what if" risks for one party and the obligations of both parties. These clauses detail what the buyer asks the seller to do for the purchase price. Arrange a survey or include a treasured light fixture? Sellers can create conditions in an offer to sell, but usually conditions are of greater concern to the buyer, particularly if approval of a third partly like a lender or city planning department is involved in determining the property's suitability. Conditions to arrange financing or a home inspection are among the "ifs" that define the offer to purchase. The degree of uncertainty attached to the conditions and the buyer's related ability to close effect the value of an offer. For instance, a buyer who is pre-approved for a mortgage of sufficient size offers less risk to a seller. However, if the purchase price is significantly-above market value, the lender may not approve the mortgage, so a condition for financing is essential to protect all parties. A full-price offer with conditions that will be difficult to meet may hold less value than an under-list-price offer with no conditions. Alternatively, if the conditions are merely formalities, the conditional offer could represent greater value. Would you recognize the difference if you were the seller? That's where the expertise of the real estate professionals involved becomes valuable...
Intent and Sincerity are vital aspects of an offer although difficult to quantify. How determined is the buyer to buy, and why? How determined is the seller to sell? If either party changes their mind after the contract exists and before the closing date, the injured party has remedies in court. These legal steps may not make up for lost time and, perhaps, a missed market. An investor or flipper may decide to cut losses and bail out of the deal if the market drops significantly before closing. A seller may have second thoughts if their plans to move fall through. For both parties, value should lie in the certainty that the other party will close in spite of market shifts.
Yes, price matters, but there's a lot more involved in creating an offer that demands to be accepted. That's why an experienced real estate professional is a valuable contributor to success. Professionals can calculate, or at least estimate, the seller's net proceeds after costs related to the offer and deduction of commission. This information helps the seller accurately evaluate an offer to purchase. Understanding cost and benefit for all elements of an offer helps a buyer intent on ownership to create the best financial package possible.
Tip: Re-read this article when you are ready to make an offer, counter an offer or accept one. This will ensure value is visible to you on all levels before you decide to walk away or sign on the dotted.
This article was published in Realty Times
Written by: PJ Wade
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Monday, March 1, 2010
Are You Pre-Qualified For Your Home Loan?
The Importance of Being Pre-Qualified
Why is it so important for Buyers to be pre-qualified BEFORE you start looking for your next home? It could cost you your dream home if you're not.
When it comes to purchasing a home, many people will start looking at real estate ads, driving around neighborhoods, peeking in windows of vacant homes, and dreaming about finding the perfect home to move into. It's magical, exciting and kind of scary since they have no clear idea where to start. They just want to pick out a home and buy it. Sounds simple enough. Right?
Buying a home in today’s market can be a challenge. With many short-sales and foreclosures up for sale and many buyers wanting to take advantage of low rates and great prices, it is a mad, mad world in real estate right now. Just getting an accepted offer is tough these days. So you really do want to improve your chances by presenting a strong case. What makes a strong offer? An approved buyer. You will be best served by getting yourself aligned with some savvy real estate professional (like the one who sent you this article), who can guide you through the process from the beginning and help you arrive at the finish line – a closed escrow, and keys to your new home.
Strengthen your buying power by getting pre-approved for a home mortgage. Pre-approval and pre-qualified are not the same thing. Getting pre-qualified is easy and will get you started in the home-buying process. Before you start looking at homes, your mortgage advisor will need to know your monthly income, length of time on a job and how much of your monthly income goes towards paying debts. This is called the debt to income ratio. There is a standard rule of a maximum top and bottom number which is just as important as your fico score on your credit report. The debt to income ratio varies with the type of loan product you will be getting. For example for a conventional loan the standard ratio is 28/36. It may be slightly higher for FHA or VA loans.
The first number is the maximum percentage of your gross monthly income that the lender will allow for housing expenses. The total includes payments on the mortgage loan, mortgage insurance, fire insurance, property taxes, and homeowner’s association dues. The second number includes your housing expense plus any recurring debts such as credit card payments, auto loans, child support or any other long term obligations.
Next, your mortgage advisor will need to determine your loan to value ratio. They need to know how much cash is available to cover any down payment, closing costs or prepaid items such as taxes and insurance and how much cash reserves will remain in your accounts after your purchase. This will also help you determine the kind of loan program that is best for you. Some loan programs allow the seller to pay a percentage of the closing costs and there are also home buyer assistance programs available.
Now, with the guidance of your mortgage advisor, you are ready to decide what type of loan you will be getting, such as FHA, VA, Conventional; your interest rate, down payment, and how much cash you will be bringing to the closing table.
Your mortgage advisor will issue a pre-qualification letter for you to give to your real estate agent. This will let the real estate agent know that not only are you serious about buying a home but that you qualify and you are able to close the escrow. It will also help your real estate agent when they present an offer to purchase a property on your behalf.
The seller may have more than one offer on a particular property and when this happens the seller will look at each offer and consider the down payment amount and the type of financing that the buyer is getting. The seller is usually most interested in choosing a buyer who can close the transaction. Presenting a buyer with and approved loan will help seal the deal and put you on the path to being a happy homeowner.
This article appeared in the March Edition of the Coldwell Banker Select Real Estate E-Newsletter
Provided by: Chrystina Tovani at Stanford Mortgage
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Why is it so important for Buyers to be pre-qualified BEFORE you start looking for your next home? It could cost you your dream home if you're not.
When it comes to purchasing a home, many people will start looking at real estate ads, driving around neighborhoods, peeking in windows of vacant homes, and dreaming about finding the perfect home to move into. It's magical, exciting and kind of scary since they have no clear idea where to start. They just want to pick out a home and buy it. Sounds simple enough. Right?
Buying a home in today’s market can be a challenge. With many short-sales and foreclosures up for sale and many buyers wanting to take advantage of low rates and great prices, it is a mad, mad world in real estate right now. Just getting an accepted offer is tough these days. So you really do want to improve your chances by presenting a strong case. What makes a strong offer? An approved buyer. You will be best served by getting yourself aligned with some savvy real estate professional (like the one who sent you this article), who can guide you through the process from the beginning and help you arrive at the finish line – a closed escrow, and keys to your new home.
Strengthen your buying power by getting pre-approved for a home mortgage. Pre-approval and pre-qualified are not the same thing. Getting pre-qualified is easy and will get you started in the home-buying process. Before you start looking at homes, your mortgage advisor will need to know your monthly income, length of time on a job and how much of your monthly income goes towards paying debts. This is called the debt to income ratio. There is a standard rule of a maximum top and bottom number which is just as important as your fico score on your credit report. The debt to income ratio varies with the type of loan product you will be getting. For example for a conventional loan the standard ratio is 28/36. It may be slightly higher for FHA or VA loans.
The first number is the maximum percentage of your gross monthly income that the lender will allow for housing expenses. The total includes payments on the mortgage loan, mortgage insurance, fire insurance, property taxes, and homeowner’s association dues. The second number includes your housing expense plus any recurring debts such as credit card payments, auto loans, child support or any other long term obligations.
Next, your mortgage advisor will need to determine your loan to value ratio. They need to know how much cash is available to cover any down payment, closing costs or prepaid items such as taxes and insurance and how much cash reserves will remain in your accounts after your purchase. This will also help you determine the kind of loan program that is best for you. Some loan programs allow the seller to pay a percentage of the closing costs and there are also home buyer assistance programs available.
Now, with the guidance of your mortgage advisor, you are ready to decide what type of loan you will be getting, such as FHA, VA, Conventional; your interest rate, down payment, and how much cash you will be bringing to the closing table.
Your mortgage advisor will issue a pre-qualification letter for you to give to your real estate agent. This will let the real estate agent know that not only are you serious about buying a home but that you qualify and you are able to close the escrow. It will also help your real estate agent when they present an offer to purchase a property on your behalf.
The seller may have more than one offer on a particular property and when this happens the seller will look at each offer and consider the down payment amount and the type of financing that the buyer is getting. The seller is usually most interested in choosing a buyer who can close the transaction. Presenting a buyer with and approved loan will help seal the deal and put you on the path to being a happy homeowner.
This article appeared in the March Edition of the Coldwell Banker Select Real Estate E-Newsletter
Provided by: Chrystina Tovani at Stanford Mortgage
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
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