Jul
7
How Does Loan Modification Work?
Filed Under Real Estate | Leave a Comment
Louie Frias asked:
I’ve been a mortgage banker and real estate broker since 1981 in California and Nevada. If I had to put it to numbers, I’d estimate nearly a billion dollars of business has crossed my desk. Meaning, that’s a lot of customers. I can also state that not ONE has EVER lost their home due to being in any sort of toxic mortgage product. That’s not saying no one has ever lost their home; there have been a handful that have. Unfortunately, divorces, business closing, injuries, etc happen in people’s lives.
I’m buried with calls and emails from friends and friends of friends who all ask the same qquaerion: “Can you help me fix my mortgage because my house is worth only half of what it used to be.”
How do you say “No”? I don’t.
For many years I’ve advocated safe mortgage practices and made some enemies along the way while lobbying for stricter mortgage loan officer pre-licensing and training. Seems as long as politicians or regulators are making money, they simply turn their head when it comes to doing the right thing.
I have no objection to someone who strips at night or bartends or landscapes, in trying to better themselves, BUT, I take GREAT offense to all the idiots who caused this problem by getting in without training or licensing, made a bucket of money, then abandoned the industry when it required skill to get business. Those of us still in business are the professionals. The ONLY ones who deserve to be in business.
I will fight harder than ever to assure the public at large never suffers at the hands of illegitimate charlatans. In the meantime, we are here to help those who need it. That, unfortunately means loan modification.
It’s not difficult to perform, but neither is a root canal or a contested divorce – for a professional. You can’t do either yourself; nor should you try. It takes knowing the laws of lending, underwriting and most importantly; the art of negotiating. Having patience, a LOT of time and established contacts is THE key to successfully performing a permanent loan modification that actually helps the homeowner. Only when a lender, servicer or investor challenges us or says “No”, do we send in the attorney. The attorney function is to submit an extremely complicated litigation proposal that permits us to entangle the opposing party for YEARS if necessary. Imagine how the homeowner feels when we get to do that. We have no fear of litigation nor creating bad press for the 800 pound gorillas threatening the consumer.
Phyllis
I’ve been a mortgage banker and real estate broker since 1981 in California and Nevada. If I had to put it to numbers, I’d estimate nearly a billion dollars of business has crossed my desk. Meaning, that’s a lot of customers. I can also state that not ONE has EVER lost their home due to being in any sort of toxic mortgage product. That’s not saying no one has ever lost their home; there have been a handful that have. Unfortunately, divorces, business closing, injuries, etc happen in people’s lives.
I’m buried with calls and emails from friends and friends of friends who all ask the same qquaerion: “Can you help me fix my mortgage because my house is worth only half of what it used to be.”
How do you say “No”? I don’t.
For many years I’ve advocated safe mortgage practices and made some enemies along the way while lobbying for stricter mortgage loan officer pre-licensing and training. Seems as long as politicians or regulators are making money, they simply turn their head when it comes to doing the right thing.
I have no objection to someone who strips at night or bartends or landscapes, in trying to better themselves, BUT, I take GREAT offense to all the idiots who caused this problem by getting in without training or licensing, made a bucket of money, then abandoned the industry when it required skill to get business. Those of us still in business are the professionals. The ONLY ones who deserve to be in business.
I will fight harder than ever to assure the public at large never suffers at the hands of illegitimate charlatans. In the meantime, we are here to help those who need it. That, unfortunately means loan modification.
It’s not difficult to perform, but neither is a root canal or a contested divorce – for a professional. You can’t do either yourself; nor should you try. It takes knowing the laws of lending, underwriting and most importantly; the art of negotiating. Having patience, a LOT of time and established contacts is THE key to successfully performing a permanent loan modification that actually helps the homeowner. Only when a lender, servicer or investor challenges us or says “No”, do we send in the attorney. The attorney function is to submit an extremely complicated litigation proposal that permits us to entangle the opposing party for YEARS if necessary. Imagine how the homeowner feels when we get to do that. We have no fear of litigation nor creating bad press for the 800 pound gorillas threatening the consumer.
Phyllis
Jul
6
Short Sale Second Mortgage – How To Get Out Of Two Mortgages At The Same Time
Filed Under Real Estate | Leave a Comment
Richard Geller asked:
Is a mortgage short sale possible if you have not one mortgage company to deal with, but two?
I am the developer of the Mortgage Relief Formula home study course. In my work I receive hundreds of questions from homeowners who owe more than their house is worth and cannot afford to continue making the payments. They want to avoid foreclosure appearing on their credit and they also want to do the right thing under the circumstances.
A mortgage short sale beats foreclosure both from the homeowner’s viewpoint and from the perspective of a mortgage lender. If you cannot pay on a mortgage, the bank would rather get partial payment of the mortgage, and not get your house back.
They can in fact deal with getting your house back because they are set up for it. But when they get a house back they must add it to their already bulging inventory. They must insure it. They have to fix it up. They have to put it on the market and sell it. They are selling into the same terrible market that you are facing.
But, a mortgage short sale helps the lender get partial payment on your mortgage and avoid getting your house.
Let’s recap what this type of sale is. It’s when you sell your house for less than the mortgage. The lender approves the sale and the lender collects the proceeds from the buyer, whatever is left at closing after paying closing costs and real estate broker commissions and so forth. They mortgage lender releases the mortgage so the transaction can close.
The mortgage company now has a financial loss. They may pursue you for that financial loss, which they can sometimes do through a civil court proceeding. Sometimes they cannot pursue you at all because state law prevents them from doing so. And sometimes you can negotiate with the home loan lender before the sale goes through, and they will agree in writing not to come after you for their financial losses.
But be that as it may, the question we are addressing is how you can do a sale that yields only partial payment of your first mortgage, if you have a second mortgage and not just a first mortgage?
What people forget is that even if they do a sale of their house, the loans go with the house so if they deed their house to someone else, the loans stay in place. A sale of a house does not affect the loans on that house.
The reason a short sale works is that the lender agrees to release their claim on the house at the closing table. So the new buyer can get the house free from your crushing mortgage. But if you have two mortgages such a sale is much more complicated. The buyer will want to be free of both your first and second mortgage.
That makes it twice as complicated.
Because if the first mortgage lender agrees to the sale even though it will not pay off the first mortgage, that isn’t enough. The house will be sold and still have a second mortgage on it.
A foreclosure sale, on the other hand, wipes out all the loans on the property. The lender who forecloses may get the property back through their “credit bid”. That is, if nobody bids higher than the balance on the loan including all delinquent payments and fees, the lender gets the house back. If someone bids higher, they will get the house.
Either way, all the junior loans are extinguished in the foreclosure sale. A foreclosure sale results in a transfer of title through a trustee’s deed or sherriff’s deed. A trustee’s deed or sheriff’s deed transfers title to either the lender, or the high bidder if there is a party that outbids the lender. And with that foreclosure deed, the junior loans are wiped out. So junior loans are not an issue in a foreclosure and in fact a lot of houses go through foreclosure in order to wipe out the junior loans.
But what if you want to avoid foreclosure through a short sale process, in order to help your credit and the lender? And what if you have junior loans?
There is a way to do it. Actually three ways.
Is the second mortgage a piggyback loan? Sometimes the lenders who made the first mortgage also made the second. Maybe they can allocate the short sale proceeds to release both loans.
Or, you may be able to buy out the second. They are in a position where they will get nothing at this point. If you can offer them a nickel on the dollar of debt, or a dime, maybe they will take it. That assumes you have a bit of cash. But it may not take much. After all they are already prepared to be wiped out. If you do a deal like this, make sure you get the arrangement in writing including how they will report to the credit bureaus (you want to avoid foreclosure appearing there) and also that they will not go after you any more — this is full payment of the second mortgage and forever wipes clean that debt.
And there is a third option for most folks who do not have cash to buy out the second mortgage.
This third option is doing a deal with the second mortgage holder: They will release the second mortgage in order to allow the short sale to go through. In return, you will sign a note for a percentage of that loan.
Such a note is a personal loan, an unsecured loan, and would be dischargeable in bankruptcy. But if you can manage the payments this is a good outcome for all concerned compared to the alternatives. Remember that if they get wiped out, the second mortgage holder can still come after you in civil court but by signing a note you make it cheaper for them and either way, something is better than nothing.
These three options are the best ones to consider if you want to do a short sale and avoid foreclosure, but have a second mortgage on the property. I would always recommend you consult a good lawyer to help you and best of luck.
Angela
Is a mortgage short sale possible if you have not one mortgage company to deal with, but two?
I am the developer of the Mortgage Relief Formula home study course. In my work I receive hundreds of questions from homeowners who owe more than their house is worth and cannot afford to continue making the payments. They want to avoid foreclosure appearing on their credit and they also want to do the right thing under the circumstances.
A mortgage short sale beats foreclosure both from the homeowner’s viewpoint and from the perspective of a mortgage lender. If you cannot pay on a mortgage, the bank would rather get partial payment of the mortgage, and not get your house back.
They can in fact deal with getting your house back because they are set up for it. But when they get a house back they must add it to their already bulging inventory. They must insure it. They have to fix it up. They have to put it on the market and sell it. They are selling into the same terrible market that you are facing.
But, a mortgage short sale helps the lender get partial payment on your mortgage and avoid getting your house.
Let’s recap what this type of sale is. It’s when you sell your house for less than the mortgage. The lender approves the sale and the lender collects the proceeds from the buyer, whatever is left at closing after paying closing costs and real estate broker commissions and so forth. They mortgage lender releases the mortgage so the transaction can close.
The mortgage company now has a financial loss. They may pursue you for that financial loss, which they can sometimes do through a civil court proceeding. Sometimes they cannot pursue you at all because state law prevents them from doing so. And sometimes you can negotiate with the home loan lender before the sale goes through, and they will agree in writing not to come after you for their financial losses.
But be that as it may, the question we are addressing is how you can do a sale that yields only partial payment of your first mortgage, if you have a second mortgage and not just a first mortgage?
What people forget is that even if they do a sale of their house, the loans go with the house so if they deed their house to someone else, the loans stay in place. A sale of a house does not affect the loans on that house.
The reason a short sale works is that the lender agrees to release their claim on the house at the closing table. So the new buyer can get the house free from your crushing mortgage. But if you have two mortgages such a sale is much more complicated. The buyer will want to be free of both your first and second mortgage.
That makes it twice as complicated.
Because if the first mortgage lender agrees to the sale even though it will not pay off the first mortgage, that isn’t enough. The house will be sold and still have a second mortgage on it.
A foreclosure sale, on the other hand, wipes out all the loans on the property. The lender who forecloses may get the property back through their “credit bid”. That is, if nobody bids higher than the balance on the loan including all delinquent payments and fees, the lender gets the house back. If someone bids higher, they will get the house.
Either way, all the junior loans are extinguished in the foreclosure sale. A foreclosure sale results in a transfer of title through a trustee’s deed or sherriff’s deed. A trustee’s deed or sheriff’s deed transfers title to either the lender, or the high bidder if there is a party that outbids the lender. And with that foreclosure deed, the junior loans are wiped out. So junior loans are not an issue in a foreclosure and in fact a lot of houses go through foreclosure in order to wipe out the junior loans.
But what if you want to avoid foreclosure through a short sale process, in order to help your credit and the lender? And what if you have junior loans?
There is a way to do it. Actually three ways.
Is the second mortgage a piggyback loan? Sometimes the lenders who made the first mortgage also made the second. Maybe they can allocate the short sale proceeds to release both loans.
Or, you may be able to buy out the second. They are in a position where they will get nothing at this point. If you can offer them a nickel on the dollar of debt, or a dime, maybe they will take it. That assumes you have a bit of cash. But it may not take much. After all they are already prepared to be wiped out. If you do a deal like this, make sure you get the arrangement in writing including how they will report to the credit bureaus (you want to avoid foreclosure appearing there) and also that they will not go after you any more — this is full payment of the second mortgage and forever wipes clean that debt.
And there is a third option for most folks who do not have cash to buy out the second mortgage.
This third option is doing a deal with the second mortgage holder: They will release the second mortgage in order to allow the short sale to go through. In return, you will sign a note for a percentage of that loan.
Such a note is a personal loan, an unsecured loan, and would be dischargeable in bankruptcy. But if you can manage the payments this is a good outcome for all concerned compared to the alternatives. Remember that if they get wiped out, the second mortgage holder can still come after you in civil court but by signing a note you make it cheaper for them and either way, something is better than nothing.
These three options are the best ones to consider if you want to do a short sale and avoid foreclosure, but have a second mortgage on the property. I would always recommend you consult a good lawyer to help you and best of luck.
Angela
Jun
5
Terry Edwards asked:
In this article we will discuss and answer different frequently asked questions as they apply to reverse mortgages. Treat this article as your own personal reverse mortgage FAQs.
What is a reverse mortgage?
It is a loan against the equity of your home and is given to a senior homeowner who is 62 years of age or older.
Are there any other qualifications?
Only that your home has equity, and little or no debt. Other than that, you do not have to earn a specific amount of yearly income, have a certain credit score, or possess any other assets to be used as collateral for the loan.
How can I receive my loan?
There are three different options. You can receive it all in one lump sum, receive it in monthly installments, or choose to take out a line of credit to be used against the loan.
How is the loan paid back?
The mortgage is required to be paid back when the homeowner dies, moves out of the home, or sells it. Then, the proceeds of the sale go to the lending institution. If, the proceeds from selling the home exceed the loan amount, then the owner of the home is awarded the difference. If the owner has died, then the difference goes to the owner’s heirs. When the proceeds are not enough to pay the loan off, then the lending institution itself absorbs the difference.
How is a reverse loan calculated?
Your loan will primarily be determined by the appraisal on your property. Other factors include the interest rate, and your age. The older you are, the more amount of money you will receive on your loan. Also, depending upon how you decide to receive the money and the location of your property determined how it is calculated.
What can I spend my loan on?
If you have a mortgage currently on your home, then you’re required to first pay that off. However, once it is paid off, or if you have no mortgage currently on your home, then you can spend your loan on whatever you desire.
There you have it — a simple, straightforward reverse mortgage FAQ. Hopefully your questions have been answered by this article. If not, I urge you to consult with more resources, and do further research as it applies to these types of loans. This is a wonderful option available to the senior who is looking for a loan to help them with retirement.
Terry
In this article we will discuss and answer different frequently asked questions as they apply to reverse mortgages. Treat this article as your own personal reverse mortgage FAQs.
What is a reverse mortgage?
It is a loan against the equity of your home and is given to a senior homeowner who is 62 years of age or older.
Are there any other qualifications?
Only that your home has equity, and little or no debt. Other than that, you do not have to earn a specific amount of yearly income, have a certain credit score, or possess any other assets to be used as collateral for the loan.
How can I receive my loan?
There are three different options. You can receive it all in one lump sum, receive it in monthly installments, or choose to take out a line of credit to be used against the loan.
How is the loan paid back?
The mortgage is required to be paid back when the homeowner dies, moves out of the home, or sells it. Then, the proceeds of the sale go to the lending institution. If, the proceeds from selling the home exceed the loan amount, then the owner of the home is awarded the difference. If the owner has died, then the difference goes to the owner’s heirs. When the proceeds are not enough to pay the loan off, then the lending institution itself absorbs the difference.
How is a reverse loan calculated?
Your loan will primarily be determined by the appraisal on your property. Other factors include the interest rate, and your age. The older you are, the more amount of money you will receive on your loan. Also, depending upon how you decide to receive the money and the location of your property determined how it is calculated.
What can I spend my loan on?
If you have a mortgage currently on your home, then you’re required to first pay that off. However, once it is paid off, or if you have no mortgage currently on your home, then you can spend your loan on whatever you desire.
There you have it — a simple, straightforward reverse mortgage FAQ. Hopefully your questions have been answered by this article. If not, I urge you to consult with more resources, and do further research as it applies to these types of loans. This is a wonderful option available to the senior who is looking for a loan to help them with retirement.
Terry
May
18
Cash-Out Refinancing FAQs
Filed Under Real Estate | Leave a Comment
Max Bellamy asked:
Frequently Asked Questions or FAQ is an online document that includes a series of common questions and answers on cash out refinancing. Frequently asked questions about cash-out refinancing helps interested people understand the concept of cash out refinancing, and understand issues that may not have crossed their mind. The information can be vital in a person’s decision to go for a cash-out loan or try to find another means to handle their credit issues. Sensitive information regarding cash-out refinancing or mortgages are some of the topics that are discussed. Many websites dealing with loans provide information to questions you may have regarding procedures that are followed, mortgages that are available and what cash-out refinancing is all about.
For complete information, individuals can also find reliable lending institutions that can be consulted. Visiting such sites may clarify doubts in the minds of people with regard to investing in a cash-out refinance plan or other loan plans.
Apart from general inquiries, topics related to mortgage refinancing, modes of repayment, home equity refinancing, various aspects of cash based refinancing are explained at length. Individuals may be able to choose a viable option by putting forth several hypothetical situations for future references through such services provided online.
People may search for accurate information on any hidden costs relating to cash-out refinancing that are legally recommended by lending institutions. Most facts about policies relating to borrowing and reduced interest rates may be available online at websites where bidding can be done for the best possible rates.
Most websites respond to queries of customers only after thorough research is conducted, taking several parameters into consideration. These sites enable individuals to get answers to general topics as well as technical issues.
Dennis
Frequently Asked Questions or FAQ is an online document that includes a series of common questions and answers on cash out refinancing. Frequently asked questions about cash-out refinancing helps interested people understand the concept of cash out refinancing, and understand issues that may not have crossed their mind. The information can be vital in a person’s decision to go for a cash-out loan or try to find another means to handle their credit issues. Sensitive information regarding cash-out refinancing or mortgages are some of the topics that are discussed. Many websites dealing with loans provide information to questions you may have regarding procedures that are followed, mortgages that are available and what cash-out refinancing is all about.
For complete information, individuals can also find reliable lending institutions that can be consulted. Visiting such sites may clarify doubts in the minds of people with regard to investing in a cash-out refinance plan or other loan plans.
Apart from general inquiries, topics related to mortgage refinancing, modes of repayment, home equity refinancing, various aspects of cash based refinancing are explained at length. Individuals may be able to choose a viable option by putting forth several hypothetical situations for future references through such services provided online.
People may search for accurate information on any hidden costs relating to cash-out refinancing that are legally recommended by lending institutions. Most facts about policies relating to borrowing and reduced interest rates may be available online at websites where bidding can be done for the best possible rates.
Most websites respond to queries of customers only after thorough research is conducted, taking several parameters into consideration. These sites enable individuals to get answers to general topics as well as technical issues.
Dennis
May
13
George R Stone asked:
Unfortunately, hundreds of thousands if not millions of homeowners are realizing this fact in today’s depressed housing market. It is mostly a result of either a “no money down” home purchase or tapping that ‘ever-growing’ equity with some form of 100% home financing. The worst scenarios for home owners are those situations where there is a looming ARM adjustment in a year to three years where the homeowner had planned to refi or sell before mortgage interest rates adjust higher. Have you ever noticed Adjustable Rate Mortgages NEVER go down? It’s SO painful!
For some that have a fixed rate, it’s just a matter of waiting until home values go up. In many, if not most homes this has historically been the case. If you stay in one house long enough the value will eventually go back up. The exceptions to this waiting strategy occur in very localized areas where the economy has gone down the toilet giving homeowners a double whammy.
So what’s a homeowner to do? Actually there are a number of things that can be done. We will cover them in two parts. Part 1 is related to financing and Part 2 is related to the home itself.
1. Financing related actions:
a. If you acquired a sub-prime mortgage due to credit issues, begin a full court press on raising your credit scores. This is too broad a subject to cover here but you must start TODAY! Go to our website in the upper part of the page above my toll free number and click on the link for guaranteed help. b. If you had to get a stated income sub-prime or “Alt A” mortgage due to income that is difficult to document, you need to talk with your CPA or accountant. If you are using aggressive tax tactics to shelter some earned income you may need to need reconsider, especially if the benefit was a one-time tax reduction. Remember, you are paying a higher interest rate for as much as 40 years. You could even file an amended return for the prior year or two. Work with both your accountant and mortgage professional to analyze the situation. Your goal is to have enough documentable income to qualify for a conforming mortgage, which will have a lower interest rate throughout the life of the loan. c. Another thing you could do is to sell a car to get rid of a car payment. If you have to replace it, buy a much cheaper car or let a non-borrowing spouse finance it so it doesn’t hit your DTI.
2. Home related actions:
a. Get an accurate appraisal even if you must have a new one done. Pay close attention to negative adjustments between your home and the comparables. It should give you a starting point on what modifications you can make. Yes you may have to put more money in your home to significantly increase the value but you will do it on the absolute cheap (cheap price not cheap quality). Don’t hesitate to pick up the phone and ask your appraiser what should be done. A good example would be to finish a basement or eliminate some condition items noted by the appraiser. b. The most important single item most homeowners overlook is STREET APPEAL! At resale, it’s everything. Cute houses resell better and faster in ALL markets. c. Much of the work must and should be done by the homeowner. If you use contractors, only use them for critical building code items like electrical, structural and some plumbing, otherwise you could make your situation worse. d. Consult a realtor about what buyers want and don’t over improve for your neighborhood. It’s hard to get your money from $10,000 dollars worth of granite countertops in many locations much less make money. e. If you must sell or want to sell, clean and depersonalize your structure. Nothing on the floor and empty looking closets, personal photos gone to storage, no wild colored paint or special paint treatment (There IS a reason relocation companies favor ivory.), and no broken ANYTHING!
There you have it. So stop being depressed and start taking action. A planned set of actions is the best cure for many anxieties. Good Luck!
Vivian
Unfortunately, hundreds of thousands if not millions of homeowners are realizing this fact in today’s depressed housing market. It is mostly a result of either a “no money down” home purchase or tapping that ‘ever-growing’ equity with some form of 100% home financing. The worst scenarios for home owners are those situations where there is a looming ARM adjustment in a year to three years where the homeowner had planned to refi or sell before mortgage interest rates adjust higher. Have you ever noticed Adjustable Rate Mortgages NEVER go down? It’s SO painful!
For some that have a fixed rate, it’s just a matter of waiting until home values go up. In many, if not most homes this has historically been the case. If you stay in one house long enough the value will eventually go back up. The exceptions to this waiting strategy occur in very localized areas where the economy has gone down the toilet giving homeowners a double whammy.
So what’s a homeowner to do? Actually there are a number of things that can be done. We will cover them in two parts. Part 1 is related to financing and Part 2 is related to the home itself.
1. Financing related actions:
a. If you acquired a sub-prime mortgage due to credit issues, begin a full court press on raising your credit scores. This is too broad a subject to cover here but you must start TODAY! Go to our website in the upper part of the page above my toll free number and click on the link for guaranteed help. b. If you had to get a stated income sub-prime or “Alt A” mortgage due to income that is difficult to document, you need to talk with your CPA or accountant. If you are using aggressive tax tactics to shelter some earned income you may need to need reconsider, especially if the benefit was a one-time tax reduction. Remember, you are paying a higher interest rate for as much as 40 years. You could even file an amended return for the prior year or two. Work with both your accountant and mortgage professional to analyze the situation. Your goal is to have enough documentable income to qualify for a conforming mortgage, which will have a lower interest rate throughout the life of the loan. c. Another thing you could do is to sell a car to get rid of a car payment. If you have to replace it, buy a much cheaper car or let a non-borrowing spouse finance it so it doesn’t hit your DTI.
2. Home related actions:
a. Get an accurate appraisal even if you must have a new one done. Pay close attention to negative adjustments between your home and the comparables. It should give you a starting point on what modifications you can make. Yes you may have to put more money in your home to significantly increase the value but you will do it on the absolute cheap (cheap price not cheap quality). Don’t hesitate to pick up the phone and ask your appraiser what should be done. A good example would be to finish a basement or eliminate some condition items noted by the appraiser. b. The most important single item most homeowners overlook is STREET APPEAL! At resale, it’s everything. Cute houses resell better and faster in ALL markets. c. Much of the work must and should be done by the homeowner. If you use contractors, only use them for critical building code items like electrical, structural and some plumbing, otherwise you could make your situation worse. d. Consult a realtor about what buyers want and don’t over improve for your neighborhood. It’s hard to get your money from $10,000 dollars worth of granite countertops in many locations much less make money. e. If you must sell or want to sell, clean and depersonalize your structure. Nothing on the floor and empty looking closets, personal photos gone to storage, no wild colored paint or special paint treatment (There IS a reason relocation companies favor ivory.), and no broken ANYTHING!
There you have it. So stop being depressed and start taking action. A planned set of actions is the best cure for many anxieties. Good Luck!
Vivian
Apr
23
Is it the Right Time for Me to Buy a Home? (renting Vs. Buying.)
Filed Under Real Estate | Leave a Comment
David Donhoff asked:
Is it the right time FOR ME to buy? (renting vs. buying.)
They say that “Timing is Everything”… but how can we know when it’s really the best time FOR YOU to make the leap into becoming a home-OWNER instead of a renter?
Well, the answer is partly financial, and partly personal/emotional.
Financially; As soon as you can afford the minimum payments to become an owner, you are best advised to GET ON THE BOAT, because the economic advantages of owning your own home are generally more than renting over the long run, and the longer you wait the less of the long run advantages you get to accumulate. EVERYONE has to pay for the housing privileges they consume, whether you rent or own…. so once you can afford the minimum payments you qualify for, it usually makes good sense to take the leap and own your own home.
Personally/Emotionally; Once you’ve ’settled’ into a neighborhood and decided you’re comfortable staying there for at least 3-5 years or longer, many people ‘feel’ more stable and grounded when they see themselves as an owner within their community. Newlyweds often tell us they feel like they have “arrived” as a married family when they finally acquire their very first home… even when it is a first-timer’s ‘Starter-Home.’ As parents, we tend to think that owning versus renting is beyond our kids concerns… but among their social playmates, children are VERY aware of when their family is anchored as “owners” versus renters.
When is it NOT the time to buy a home? When you fully expect to have to move, completely, in less than 3 years… OR, if you simply cannot afford the payments of the financing required to buy the minimum home acceptable to you and the rental of such a home is cheap enough that you can pay it instead (even without getting the benefits.)
If you have additional questions or concerns, you are invited to the No Bull Financial FAQ, where you can post any question, any time, and you will get answers from Dave himself!
–Dave
www.NoBullFinancial.com
Info@NoBullFinancial.com
EDWARD
Is it the right time FOR ME to buy? (renting vs. buying.)
They say that “Timing is Everything”… but how can we know when it’s really the best time FOR YOU to make the leap into becoming a home-OWNER instead of a renter?
Well, the answer is partly financial, and partly personal/emotional.
Financially; As soon as you can afford the minimum payments to become an owner, you are best advised to GET ON THE BOAT, because the economic advantages of owning your own home are generally more than renting over the long run, and the longer you wait the less of the long run advantages you get to accumulate. EVERYONE has to pay for the housing privileges they consume, whether you rent or own…. so once you can afford the minimum payments you qualify for, it usually makes good sense to take the leap and own your own home.
Personally/Emotionally; Once you’ve ’settled’ into a neighborhood and decided you’re comfortable staying there for at least 3-5 years or longer, many people ‘feel’ more stable and grounded when they see themselves as an owner within their community. Newlyweds often tell us they feel like they have “arrived” as a married family when they finally acquire their very first home… even when it is a first-timer’s ‘Starter-Home.’ As parents, we tend to think that owning versus renting is beyond our kids concerns… but among their social playmates, children are VERY aware of when their family is anchored as “owners” versus renters.
When is it NOT the time to buy a home? When you fully expect to have to move, completely, in less than 3 years… OR, if you simply cannot afford the payments of the financing required to buy the minimum home acceptable to you and the rental of such a home is cheap enough that you can pay it instead (even without getting the benefits.)
If you have additional questions or concerns, you are invited to the No Bull Financial FAQ, where you can post any question, any time, and you will get answers from Dave himself!
–Dave
www.NoBullFinancial.com
Info@NoBullFinancial.com
EDWARD
Apr
3
The Secret to Reaching Motivated Sellers as a Real Estate Investor With Advanced Direct Mail Strategies
Filed Under Real Estate | Leave a Comment
Sean Flanagan asked:
If you want to truly succeed as a real estate investor, you need to disregard the majority of the marketing advice being promoted by the “I can teach you to walk on water overnight” guru real estate investor crowd. If you really want to reach the real estate investing Promised Land, you’re going to have to quit worshiping at the altar of the guru investors. They’re very good at marketing themselves and their overpriced, ineffective real estate investing courses, but if you want to really launch your career into the stratosphere you’re going to have to find a better way.
I’m not saying the gurus completely miss the boat; they’re just going about it the wrong way. For instance, some of the guru investors have correctly identified direct mail as a way to reach motivated sellers. Unfortunately, in their quest to profit off of their naïve students, many of them have cut corners and broken a cardinal rule of marketing: Stand out from the crowd.
Imagine for a moment that you’re a distressed homeowner. You’re stuck with a mortgage you can’t afford or you own a home that needs repairs you can’t make. You walk to your mailbox to retrieve your mail and mixed in with a stack of bills, late notices, high rate credit card offers and solicitations from cash advance companies are two small postcards. Here’s what the first one says:
“Behind on your mortgage payment?
We can help!
Call 1-800-555-5555”
Not very inspiring, is it? How likely would you be to give that postcard more than a passing glance before pitching it in the trash? Now look at the second postcard.
“Is your banker offering to swing by your place with his pickup truck this weekend to help you move? If late payments or other problems have you between a rock and a hard place, we can help. And we can do it now. Call 1-800-555-5555 to find out how we can throw you a life jacket and save you from drowning.”
If both of these postcards are fighting for your attention, which one is more likely to grab your attention? That’s right – the second one. Now for the million dollar question: Do you know why the second postcard would be more effective? In short, it’s more interesting, original, and compelling. Thousands of real estate investors are wasting their hard-earned money on marketing strategies that just don’t work. The concept of a postcard is effective, but the message is broken and needs to be replaced with something fresh, compelling, and attention grabbing.
I’m not suggesting that you should necessarily use the exact message that is on this postcard. What I’m saying is that you need to develop your own original message that will cut through the clutter and capture the attention of your prospect. If the message on your postcard is identical to the message on every other postcard that shows up in their mailbox it’s going to be ignored. You’ll be wasting your time and your money.
The same holds true when mailing letters to distressed homeowners. The average real estate investor seems to think that if John Q. Homeowner can’t make his payments and is facing foreclosure, that the instant your letter shows up in his mailbox, he’s going to drop to his knees, raise his hands in the air, and thank God for sending you his way.
Newsflash: That’s simply not going to happen. The average homeowner facing this situation typically handles it the way they do when they begin seeing signs that their marriage is headed south. They pretend there’s nothing wrong while they silently worry. Doing nothing is easier than taking action, and as long as they do nothing there’s a chance that things could miraculously turn around at the last second.
Your letter has to hit him (or her) between the eyes and grab their attention. It can’t be a generic one OF a million letters. Your piece also can’t be all about you, your experience, or how great you (think) you are. What it has to do is get their attention by making an emotional connection and showing them in no uncertain terms that there’s a benefit to them in calling you. In short, your letter is essentially a sales letter, but you can’t make them feel as if they’re being sold.
Can you do this? Can you effectively cut through the clutter and in the span of one or two pages demonstrate your expertise and your willingness to help them while making it worth their while? If you can, you’re ahead of all the other form-letters that fill their mailbox.
If you can’t, you need to find a way.
Either learn how to write an effective letter or postcard or hire someone who can. Your future as a real estate investor is riding on your ability to make a connection and demonstrate the benefits to them of working with you to solve their problems.
Get creative in the way you use direct mail in real estate investing. Otherwise you’ll be just as creatively challenged as the guru real estate investor you’ve been listening to. The only difference will that he or she will have all your money – and you’ll be no closer to closing a real estate deal. Don’t let that happen. Take control of your life and your future or you’ll be the best failed real estate investor at your next REIA meeting.
That would be a tragedy.
DICK
If you want to truly succeed as a real estate investor, you need to disregard the majority of the marketing advice being promoted by the “I can teach you to walk on water overnight” guru real estate investor crowd. If you really want to reach the real estate investing Promised Land, you’re going to have to quit worshiping at the altar of the guru investors. They’re very good at marketing themselves and their overpriced, ineffective real estate investing courses, but if you want to really launch your career into the stratosphere you’re going to have to find a better way.
I’m not saying the gurus completely miss the boat; they’re just going about it the wrong way. For instance, some of the guru investors have correctly identified direct mail as a way to reach motivated sellers. Unfortunately, in their quest to profit off of their naïve students, many of them have cut corners and broken a cardinal rule of marketing: Stand out from the crowd.
Imagine for a moment that you’re a distressed homeowner. You’re stuck with a mortgage you can’t afford or you own a home that needs repairs you can’t make. You walk to your mailbox to retrieve your mail and mixed in with a stack of bills, late notices, high rate credit card offers and solicitations from cash advance companies are two small postcards. Here’s what the first one says:
“Behind on your mortgage payment?
We can help!
Call 1-800-555-5555”
Not very inspiring, is it? How likely would you be to give that postcard more than a passing glance before pitching it in the trash? Now look at the second postcard.
“Is your banker offering to swing by your place with his pickup truck this weekend to help you move? If late payments or other problems have you between a rock and a hard place, we can help. And we can do it now. Call 1-800-555-5555 to find out how we can throw you a life jacket and save you from drowning.”
If both of these postcards are fighting for your attention, which one is more likely to grab your attention? That’s right – the second one. Now for the million dollar question: Do you know why the second postcard would be more effective? In short, it’s more interesting, original, and compelling. Thousands of real estate investors are wasting their hard-earned money on marketing strategies that just don’t work. The concept of a postcard is effective, but the message is broken and needs to be replaced with something fresh, compelling, and attention grabbing.
I’m not suggesting that you should necessarily use the exact message that is on this postcard. What I’m saying is that you need to develop your own original message that will cut through the clutter and capture the attention of your prospect. If the message on your postcard is identical to the message on every other postcard that shows up in their mailbox it’s going to be ignored. You’ll be wasting your time and your money.
The same holds true when mailing letters to distressed homeowners. The average real estate investor seems to think that if John Q. Homeowner can’t make his payments and is facing foreclosure, that the instant your letter shows up in his mailbox, he’s going to drop to his knees, raise his hands in the air, and thank God for sending you his way.
Newsflash: That’s simply not going to happen. The average homeowner facing this situation typically handles it the way they do when they begin seeing signs that their marriage is headed south. They pretend there’s nothing wrong while they silently worry. Doing nothing is easier than taking action, and as long as they do nothing there’s a chance that things could miraculously turn around at the last second.
Your letter has to hit him (or her) between the eyes and grab their attention. It can’t be a generic one OF a million letters. Your piece also can’t be all about you, your experience, or how great you (think) you are. What it has to do is get their attention by making an emotional connection and showing them in no uncertain terms that there’s a benefit to them in calling you. In short, your letter is essentially a sales letter, but you can’t make them feel as if they’re being sold.
Can you do this? Can you effectively cut through the clutter and in the span of one or two pages demonstrate your expertise and your willingness to help them while making it worth their while? If you can, you’re ahead of all the other form-letters that fill their mailbox.
If you can’t, you need to find a way.
Either learn how to write an effective letter or postcard or hire someone who can. Your future as a real estate investor is riding on your ability to make a connection and demonstrate the benefits to them of working with you to solve their problems.
Get creative in the way you use direct mail in real estate investing. Otherwise you’ll be just as creatively challenged as the guru real estate investor you’ve been listening to. The only difference will that he or she will have all your money – and you’ll be no closer to closing a real estate deal. Don’t let that happen. Take control of your life and your future or you’ll be the best failed real estate investor at your next REIA meeting.
That would be a tragedy.
DICK
Mar
9
Forclosure Sales: Boom or Bust?
Filed Under Real Estate | Leave a Comment
Scott Baxter asked:
Now that banks are having to repossess homes from delinquent mortgagors, some buyers are asking, “should I buy a bank owned property”? Even with years of real estate experience and knowledge, the best answer here is still: “It depends.” Shopping around and knowing the particulars of each sale are still vital as they can vary widely from one house to the next. Arming yourself with some basic information on these types of transactions should also help to give you an idea of the risks and potential gains involved.
SHOP AROUND
Bank-owned or REO (real estate owned) properties can vary in condition from damaged to excellent, and be priced properly (at market) or be a great value. You just need to shop around. I have some clients that have found absolute gems priced 10% to 20% below market.
Even after you shop around though, there’s still a fair amount of risk involved in buying this kind of property. Most of the homes in this category are sold in “AS-IS” condition. In some cases, you won’t even be able to inspect the house before you buy it. Banks won’t make repairs or be held liable for damages, mold or the like so be prepared to sign lots of addendums exonerating them from any responsibility after the sale. Also the bank tends to place a per diem clause that may cost you $100 per day if you’re late in closing.
If you’re prepared to accept these conditions, I say “Make an offer” and see what happens. Basically, there are three types of foreclosure sales:
AUCTION
This is the riskiest way to purchase bank-owned property, but can also net the greatest financial gain. Some estimates say 25% off the original purchase price is common. If you want to play the auction game, you’ll have to pay cash and you’ll have to forego any kind of inspection. Auctioned homes are truly “AS-IS.” There is also no way to avoid the fact that you are profiting from someone else’s misfortune with this option. People who are losing their homes may refuse to move out or may damage the property in anger
SHORT SALE
This isn’t really a foreclosure sale, but a sale the homeowner makes in order to ward off foreclosure and do some damage control. Also known as pre-foreclosure, this is when you buy from a homeowner before the bank intervenes. You can inspect the house before you buy when you go this route, but be warned – many of these deals are stalled or squashed by the banks before they’re closed.
REO
This is when you buy a foreclosure from a real estate company. REO presents the least risk of all three options. You have clear title, right to inspect and can get your financing in line first. You won’t get as great a deal as you could by buying at an auction but for many buyers, the reduced headache is well worth it.
One thing I can say for certain: banks NEVER want to own these REO properties, they just want to lend money and collect mortgage payments. When a property becomes bank owned, it’s because the borrower has forced the bank to foreclose, that is it. What this usually means for buyers is a clear chance to purchase a home from a very willing seller.
DONOVAN
Now that banks are having to repossess homes from delinquent mortgagors, some buyers are asking, “should I buy a bank owned property”? Even with years of real estate experience and knowledge, the best answer here is still: “It depends.” Shopping around and knowing the particulars of each sale are still vital as they can vary widely from one house to the next. Arming yourself with some basic information on these types of transactions should also help to give you an idea of the risks and potential gains involved.
SHOP AROUND
Bank-owned or REO (real estate owned) properties can vary in condition from damaged to excellent, and be priced properly (at market) or be a great value. You just need to shop around. I have some clients that have found absolute gems priced 10% to 20% below market.
Even after you shop around though, there’s still a fair amount of risk involved in buying this kind of property. Most of the homes in this category are sold in “AS-IS” condition. In some cases, you won’t even be able to inspect the house before you buy it. Banks won’t make repairs or be held liable for damages, mold or the like so be prepared to sign lots of addendums exonerating them from any responsibility after the sale. Also the bank tends to place a per diem clause that may cost you $100 per day if you’re late in closing.
If you’re prepared to accept these conditions, I say “Make an offer” and see what happens. Basically, there are three types of foreclosure sales:
AUCTION
This is the riskiest way to purchase bank-owned property, but can also net the greatest financial gain. Some estimates say 25% off the original purchase price is common. If you want to play the auction game, you’ll have to pay cash and you’ll have to forego any kind of inspection. Auctioned homes are truly “AS-IS.” There is also no way to avoid the fact that you are profiting from someone else’s misfortune with this option. People who are losing their homes may refuse to move out or may damage the property in anger
SHORT SALE
This isn’t really a foreclosure sale, but a sale the homeowner makes in order to ward off foreclosure and do some damage control. Also known as pre-foreclosure, this is when you buy from a homeowner before the bank intervenes. You can inspect the house before you buy when you go this route, but be warned – many of these deals are stalled or squashed by the banks before they’re closed.
REO
This is when you buy a foreclosure from a real estate company. REO presents the least risk of all three options. You have clear title, right to inspect and can get your financing in line first. You won’t get as great a deal as you could by buying at an auction but for many buyers, the reduced headache is well worth it.
One thing I can say for certain: banks NEVER want to own these REO properties, they just want to lend money and collect mortgage payments. When a property becomes bank owned, it’s because the borrower has forced the bank to foreclose, that is it. What this usually means for buyers is a clear chance to purchase a home from a very willing seller.
DONOVAN
Feb
28
Real Estate FAQ
Filed Under Real Estate | Leave a Comment
realestatebase asked:
!!. Serious Genuine Financial Aid Needed.!!?
I am Adam, 27, a Singapore citizen. Does anyone anybody with a good soul here volunteer a personal loan/sponsorship to an individual person? I wanted to set up a small F&B franchise store within Singapore and I needed a capital. I am…
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I think my mortgage co. is giving me the runaround. If I borrow $40,000 my pmt. is $370/mo., if I borrow $60,000 my pmt. is $420/mo. If I get < $50,000 they want me to...
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Failing that, how do i go give or take a few getting a morgage or what ever to buy a place.?
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Douglas Hernberg-Advantage Florida Mortgage would approaching to know how long the feed will preserve rates low?
Douglas Hernberg-Advantage Florida Mortgage would like to know how long the fed will keep hold of rates low?
Good Faith Funds held contained by escrow given put a bet on if no board approval?
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Income Qualifications Apply?
What does it stingy when an apartment complex say that income certificate apply? I assumed for a while that it intended you have to kind ABOVE a particular amount, but I talk to one apartment who required that you fashion BELOW a indubitable amount. …
One Easy Fee loan broker contained by San Diego I have a fruitless experience and believe in attendance are likley to be others.
let me know what happen and maybe I can help out
something more or less that look,when you stare?
Tell me what comes to mind when you here that title? im a poet and merely looking for what comes to a folks mind when they here this.
Sorry No Pets, Smokers Or H/B?
i just saw an advert for a flat and at the bottom it said Sorry No Pets, Smokers Or H/B. what does No H/B mean?
used solely for the erection of single inherited residences propose within a work of restrictions for subdivision lot
Have closely contained by a subdivision and one of the restrictions is lots shall be used solely for the erection of single relations residences does it niggardly you enjoy to build…
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Is nearby a unique month(s) that race tend to purchase homes (actual houses) the most? I could assume but is in attendance some documented information roughly this? Whats your guess?
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(a) Rent a center im renting a sony vaio laptop , but im wanting a untried one ..?
is there any method possible i could turn the sony vaio in, && attain a toshiba, however the amount i have payed on the sony vaio would it be…
(a)Question needed hurried!?
OK I need some simple answers for these questions lol. These are question about millsberry.com Again SIMPLE answers! Also list your mills username! 1. Who wrote the mills gazette articleGROCERY SHOPPING MADE EASY? 2.General Mills market several well-known brands, including…. List at least 3…
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I know it depends on the value of your house, I just want to do some estimation.
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My husband wants us to take out a one rationalization mortgage. He reckons that you put your savings and income contained by there, your mortgage shrinks, say, to 3 years – later your house is completely paid off and…
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More Real Estate Q&A Please visit : Real-Estate-Base.com
GUY
!!. Serious Genuine Financial Aid Needed.!!?
I am Adam, 27, a Singapore citizen. Does anyone anybody with a good soul here volunteer a personal loan/sponsorship to an individual person? I wanted to set up a small F&B franchise store within Singapore and I needed a capital. I am…
$1,000,000 homes not considered luxury anymore?
It seems the flea market in New York and California own homes that only start at $700k (There are cheaper ones, but they’re awful). I penny-pinching, how much would it cost to just mortgage another 300k? If the platform prices start…
$25,000, Business?? What would you do??
If you had 25k saved up and looked-for to start your own business. What kind of things would like to do? What are your planning?
$40,000 or $60,000 mortgage, pmt. one and only change $50/mo., why?
I think my mortgage co. is giving me the runaround. If I borrow $40,000 my pmt. is $370/mo., if I borrow $60,000 my pmt. is $420/mo. If I get < $50,000 they want me to...
What’s it close to to move out on your own? ?
I’m only fourteen years old and this have been worrying me. I only own four more years of being careless surrounded by my living situation. I was wondering what a good plan would be, when do…
How much would i be looking to money to rent a 2/3 bedroom house contained by West London?
Failing that, how do i go give or take a few getting a morgage or what ever to buy a place.?
Ghosts” should landlords / estate agents make clear to you / inform you”?
?should landlords / estate agents ell you / inform you?if people have died contained by the property? Do I have the write to end a contract if I own not been…
ATTENTION PLEASE HELP.IM BUYING A HOUSE..sooo?
can anyone anywhere tell me what make the interest rate go up and down ? presently it is 6.000 i live in virginia..it convoy 9 2008..and will it go up or down contained by the nexy few weeks..im…
Bush to outline aid to mortgage holders.. Can this be true?
Is Bush in actual fact doing something for the american race in our borders? Will he succeed at this latest errand?
Douglas Hernberg-Advantage Florida Mortgage would approaching to know how long the feed will preserve rates low?
Douglas Hernberg-Advantage Florida Mortgage would like to know how long the fed will keep hold of rates low?
Good Faith Funds held contained by escrow given put a bet on if no board approval?
If I have 10% of the final mart price of a co-op held in escrow while I’m waiting for board approval on a co-op purchase, and the board, for doesn`t matter…
GoogleCash-2 is it reliable?
I could use some extra money. How it works? what I have to do? Google should be reliable- what do you say?
how do i riddle out apartment applications?
hi i am looking at the kohner properites apartments how do you fill out at hand aparment applications?
Income Qualifications Apply?
What does it stingy when an apartment complex say that income certificate apply? I assumed for a while that it intended you have to kind ABOVE a particular amount, but I talk to one apartment who required that you fashion BELOW a indubitable amount. …
One Easy Fee loan broker contained by San Diego I have a fruitless experience and believe in attendance are likley to be others.
let me know what happen and maybe I can help out
something more or less that look,when you stare?
Tell me what comes to mind when you here that title? im a poet and merely looking for what comes to a folks mind when they here this.
Sorry No Pets, Smokers Or H/B?
i just saw an advert for a flat and at the bottom it said Sorry No Pets, Smokers Or H/B. what does No H/B mean?
used solely for the erection of single inherited residences propose within a work of restrictions for subdivision lot
Have closely contained by a subdivision and one of the restrictions is lots shall be used solely for the erection of single relations residences does it niggardly you enjoy to build…
When do relations buy homes the most?
Is nearby a unique month(s) that race tend to purchase homes (actual houses) the most? I could assume but is in attendance some documented information roughly this? Whats your guess?
Wilshire Home Design?
Theres a long story behind this, but this house: http://www.newenglandmoves.com/viewDetai… have the term Wilshire Design contained by the description. Does anyone have any hypothesis what this is, or where I could find it?
(a) Rent a center im renting a sony vaio laptop , but im wanting a untried one ..?
is there any method possible i could turn the sony vaio in, && attain a toshiba, however the amount i have payed on the sony vaio would it be…
(a)Question needed hurried!?
OK I need some simple answers for these questions lol. These are question about millsberry.com Again SIMPLE answers! Also list your mills username! 1. Who wrote the mills gazette articleGROCERY SHOPPING MADE EASY? 2.General Mills market several well-known brands, including…. List at least 3…
(electricity bill) Is this gala?
I live in a house with 3 other family, and when the electricity bill came one of the housemates felt it be unfair for her to pay the full amount, because she have been staying with her boyfriend for days gone by couple…
(If you own a house) How much do you annually repay for your house taxes, insurance and keeping?
I know it depends on the value of your house, I just want to do some estimation.
(In the UK) I never signed an inventory on the flat I rent, when I move out could this basis problems?
When we moved in there be only one item of furniture (a kettle, which apparently counts as ’some white goods’) and the place was contained by good…
(UK) once my landlady have served spot to quit our habitation (she’s selling up)?
Can we leave at any time minus giving her any notice?
(UK) one narrative mortgage – what are the catch??
My husband wants us to take out a one rationalization mortgage. He reckons that you put your savings and income contained by there, your mortgage shrinks, say, to 3 years – later your house is completely paid off and…
(UK) why is my innkeeper asking me for my prospective different landlords details?
surely this is none of her business? She says she needs this within order to return our deposit? I have told her I am not at nouns to supply third party details to…
every tabloid step on in the region of the housing crash but how much enjoy prices fallin within london?
hi all the papers are allways going on about how much the housing souk has crashed but how much has it really crashed by surrounded by london not the…
Eviction In Los Angeles, CA?
My rent for March 2008 is 1289.00 which I paid 1000.00 due to wage garnishment. I placed the money order within a sealed envelope and placed it in the tenant mailbox. Five days later I received the money order wager on from…
More Real Estate Q&A Please visit : Real-Estate-Base.com
GUY
Feb
19
7 Step First Time Home Buyer’s Guide
Filed Under Real Estate | Leave a Comment
Jodi Suguitan asked:
First, Determine exactly how much you can afford. Sit down and evaluate your monthly budget. It is important to know what amount of money you are comfortable spending every month on housing. Consider how much money you can apply towards a down payment, the more the better.
Second, speak with a lender. You may already know someone who is a lender, however I strongly encourage you to “shop rates” and programs. Talk to several lenders and compare what rates and terms they can offer that put you within your predetermined monthly payment range. A realtor can put you in contact with their personal preferred lenders who are able to search multiple mortgage products. Any reputable lender who shops rates for you will not only provide you your estimated monthly loan payment amount but should also attempt to accurately include monthly costs such as taxes and housing association fees, if those apply. You want a complete picture of what you will be paying monthly for housing. In addition lenders should search rates for you free of charge and obligation. Once you make a decision on a lender, request a pre-qualification letter.
Third, find your home. You will need to weigh criteria such as type of home, commute times, school districts, amenities, price, and so much more. Keep in mind that the asking price of a home is almost always negotiable. You have probably already done some searching on the internet which is a great way to get a feel for the market. If a picture is worth a thousand words than actually seeing the home in person is worth so much more. Contact a realtor if you have not done so. An agent who is very familiar with your area can quickly identify homes which fit your criteria. You both will set up a time and place to meet and view as many homes as it takes.
Fourth, negotiate. Your agent should perform a market analysis on the home of interest. Based on that analysis, together you will form a negotiation strategy. During negotiations typically both the seller and buyer counter offer at least once. Negotiations not only include price, but such details as repairs the property may need, closing date, closing costs, and can even cover the appliances. An experienced, assertive, proactive realtor can be invaluable during this step.
Fifth, inspection. You are now considered “under contract”. You have limited time to perform a home inspection. This is vital whenever buying a home. A home is most likely the largest single purchase you will make in your life, you want to be sure there aren’t any surprises awaiting you. A home inspector has knowledge of virtually every facet of the “nuts and bolts” of a house. The inspector will identify any potential problems with your future home. While under contract you have a window of opportunity to make changes to the contract and negotiate with the seller to fix any problems.
Sixth, paperwork. Your agent will be responsible for many documents. However there will be some that you have to fill out and others to review. They will assist you through much of this and by the end you will be familiar with names such as “mortgage application”, “home owners insurance”, “settlement statement”, and others.
Seventh, closing. Once all the “i”s are dotted and “t”s are crossed the sellers, buyers, agents, and occasionally lender will meet at the attorney’s office. During the closing ,and many signatures later, a legal transfer of the property will take place. Congratulations, you are now a home owner!
Jodi Suguitan is a licensed realtor of Solid Source Realty in Atlanta Georgia. Visit her at http://www.atlanta-home-sale.com
DOMINICK
First, Determine exactly how much you can afford. Sit down and evaluate your monthly budget. It is important to know what amount of money you are comfortable spending every month on housing. Consider how much money you can apply towards a down payment, the more the better.
Second, speak with a lender. You may already know someone who is a lender, however I strongly encourage you to “shop rates” and programs. Talk to several lenders and compare what rates and terms they can offer that put you within your predetermined monthly payment range. A realtor can put you in contact with their personal preferred lenders who are able to search multiple mortgage products. Any reputable lender who shops rates for you will not only provide you your estimated monthly loan payment amount but should also attempt to accurately include monthly costs such as taxes and housing association fees, if those apply. You want a complete picture of what you will be paying monthly for housing. In addition lenders should search rates for you free of charge and obligation. Once you make a decision on a lender, request a pre-qualification letter.
Third, find your home. You will need to weigh criteria such as type of home, commute times, school districts, amenities, price, and so much more. Keep in mind that the asking price of a home is almost always negotiable. You have probably already done some searching on the internet which is a great way to get a feel for the market. If a picture is worth a thousand words than actually seeing the home in person is worth so much more. Contact a realtor if you have not done so. An agent who is very familiar with your area can quickly identify homes which fit your criteria. You both will set up a time and place to meet and view as many homes as it takes.
Fourth, negotiate. Your agent should perform a market analysis on the home of interest. Based on that analysis, together you will form a negotiation strategy. During negotiations typically both the seller and buyer counter offer at least once. Negotiations not only include price, but such details as repairs the property may need, closing date, closing costs, and can even cover the appliances. An experienced, assertive, proactive realtor can be invaluable during this step.
Fifth, inspection. You are now considered “under contract”. You have limited time to perform a home inspection. This is vital whenever buying a home. A home is most likely the largest single purchase you will make in your life, you want to be sure there aren’t any surprises awaiting you. A home inspector has knowledge of virtually every facet of the “nuts and bolts” of a house. The inspector will identify any potential problems with your future home. While under contract you have a window of opportunity to make changes to the contract and negotiate with the seller to fix any problems.
Sixth, paperwork. Your agent will be responsible for many documents. However there will be some that you have to fill out and others to review. They will assist you through much of this and by the end you will be familiar with names such as “mortgage application”, “home owners insurance”, “settlement statement”, and others.
Seventh, closing. Once all the “i”s are dotted and “t”s are crossed the sellers, buyers, agents, and occasionally lender will meet at the attorney’s office. During the closing ,and many signatures later, a legal transfer of the property will take place. Congratulations, you are now a home owner!
Jodi Suguitan is a licensed realtor of Solid Source Realty in Atlanta Georgia. Visit her at http://www.atlanta-home-sale.com
DOMINICK