The Market is Ready for You, Future Homeowners of America!

The Market is Ready for You, Future Homeowners of America!

Our country's economy, like many things, is on a cycle and just like the old adage says, what goes up, must come down. We experienced a boom in real estate in the early 2000s and we are merely seeing the after effects of that boom now. While perhaps you may not be able to purchase a million-dollar oceanfront property this year, or even next; you will still be able to realize your very own version of the American dream.

The Mortgage Bankers Association issued a statement saying "Sales of existing homes will rise 11 percent in 2010, and sales of new homes will climb 21 percent over this year." This is great news for everyone, particularly future homeowners! What this means is that we are entering a part of the real estate cycle where things will start going back up. Just like everything else, you have to practice patience and good judgment when buying a home. Homes in the lower end of the market, also known as "entry level" or "starter" homes are a great place to start. Buying a starter home will not only ease you into the concept of owning a home, but will also familiarize you with the process of actually purchasing it. Additionally, while living in your new home, you will be able to experience the trials, tribulations and joys associated with being a homeowner.

Having a great real estate agent is the first step in this process. You will need someone to guide you through the market, not only in terms of prices and mortgages but also in terms of choosing a home that fits your lifestyle. Remember, your agent has access to multitudes of customers, buyers and sellers and the best way for you to take advantage of everyone else's experience is to work with an agent who is experienced!

DTI - Debt to Income Ratio - What is it and How Does if Affect Buying a Home

It's a buyer's market!! You've read it, you've heard it and you see it everywhere you go. Signs, slogans and ads telling you it's a buyer's market and to get out there and buy a home! But before you log on to your local MLS or start going to open houses in your dream neighborhood, there's one thing you should do to prepare yourself. You need to figure out HOW MUCH of a home you can afford to get out there and buy. There is no worse feeling in my opinion, then taking a tour of a gorgeous house, falling in love with it, mentally moving in and arranging your furniture JUST to find out that you can not afford it after all.

A major factor in owning a home is being able to afford it. Now, I'm not just talking about the expenses that come with home ownership in terms of maintenance, decorating, furnishing and tax. I am talking about the mortgage. Now, unless your rich Uncle Frank is leaving you a hefty inheritance, you are going to need to figure out your total monthly income and something called your DTI. This is your Debt to Income Ratio. This little fraction is going to be a key factor in the bank's decision regarding how much money to loan you to buy your home. Basically, this is going to be a numerical expression of how much of your monthly income is already spent on bills and other expenses.

Now there are two different types of DTI: front and back. Front DTI is basically the amount of your income that is going towards your current housing costs, rent for renters and principal, interest, tax and insurance for homeowners. The other DTI is back which is basically the amount of your income that goes towards expenses like car payments, phone bills, credit cards and other kinds of recurring debt.

In order to get an FHA Loan, your front DTI needs to be about 31% which means that if your monthly income (gross) is $5,000, your payment cannot be more than $1,550. Conventional loans allow for a DTI as high as 33% which would make your payment a maximum of $1,650. Next you will need to determine your back DTI which is also based on your monthly income. Your back DTI reflects your debt and for an FHA loan is about 43% and a conforming is about 45%.

So, on that $5,000 monthly income of yours, you can have $2,150 in monthly payments for an FHA loan and $2,250 for a conventional loan. So if your car payment, student loans, credit cards, phone bill and child support expenses are less than $600 ($2,150 - $1,550), you will effectively qualify for an FHA loan.

This is something you should consider when deciding on buying a home. Although it is a buyer's market, and there are several great deals out there; you want to make sure that a home you buy will be a home you can KEEP and that your home won't turn into someone else's great deal after you realize you can't make your mortgage!

Struggling Homeowners - Help From the President!!!

President Barack Obama has introduced many ideas and programs in efforts to provide guidance and aid to the millions of struggling homeowners in this country. The sub prime mortgage crisis, fueled by the greed and often negligence of the lending industry's major players has left millions of homeowners facing the worrisome prospect of losing their homes. On February 18, 2009, President Obama introduced the nation to his housing plan.

This plan involves several programs which are designed to help over seven million families potentially facing foreclosure to avoid the grief and stress of a foreclosure by giving them options. These options will include either refinancing or modifying their existing mortgages in hopes of ultimately making those mortgages become affordable and bearable once again. Additionally, Obama's program intends to reinforce and revitalize the federal government's commitment to Government Sponsored Entities, Fannie Mae and Freddie Mac, leaders in the secondary mortgage market.

On March 4, 2009, President Obama's administration released news and information that detailed the intricacies of the program and provided guidance on the Making Home Affordable Program.

While there are several characteristics and facets of this program, the main points for homeowners to know are listed below.

1. The Home Affordable Refinance Program. Under this program, eligible borrowers may refinance loans that Fannie Mae or Freddie Mac (the government sponsored enterprises, or GSEs) own or guarantee. The program can help homeowner-occupants who are current in making loan payments and have loan-to-value ratios (LTVs) above 80 percent but not more than 105 percent. Cash out refinancings are not permitted. The program ends in June 2010.

2. The Home Affordable Modification Program. This is a $75 billion program with lender, servicer, investor, and borrower incentives to make it work. The program is limited to homeowner-occupants who are at risk of default or already in default and who have loans at or below the maximum GSE conforming loan limit of $729,750 (or higher for 2-, 3-, and 4-unit properties). Loan modifications under the program may be made until December 31, 2012.

3. More Support for the GSEs. President Obama also announced more support for the GSEs, including doubling of potential Treasury investment from $100 billion to $200 billion for each GSE, to maintain their positive net worth. The plan also raises the cap on mortgages that the GSEs may hold in their portfolios by $50 billion to $900 billion.

Ultimately, this program intends to set this country back on the path to growth, profitability and success. Hopefully, with the government's continued support and diligence on the part of homeowners, we, as a nation, will begin to see the signs of recovery soon.

Mitra Karimi, President Crestico Realty http://www.crestico.com

Should I Buy A Home in This Market?

Is It A Good Time To Buy A Home? The simple answer is YES! It is still a good time to buy a home. With the help of the right agent, you can make this "good time" into a "great time" for you and your family. The news is full of stories about the housing crisis, homeowners losing their homes, and the overall bad state of the economy. Not all of this news, however, has to translate into dissuading you from buying a home. In fact, right now is a very good time, especially for some, to jump in and achieve the American dream of home ownership. As of late, the housing market is starting to look better. Read on for more information about why it is still a good time to buy a home.

First, the government is looking to help you. If you are a first time buyer (which, to the government, is defined as anyone who has not owned a home in the last three years), you are entitled to a maximum $8,000 tax credit. Additionally, interest rates are at all-time lows and the Federal government is taking steps to insure and make these loans available to more and more people.

Leverage. Leverage is defined basically as borrowing money to supplement existing funds for
investment. Imagine if you invested ten thousand dollars in stocks and those stocks earned ten percent, you would have earned one thousand dollars. But investing ten thousand dollars on a home, and having that home's value increase ten percent; effectively, you would have earned ten thousand dollars. Which sounds like a better investment to you?

Next, you have to live somewhere. And so does everyone else. According to nationwide statistics, approximately 800,000 new households are created each year in the United States alone. Each of these households will need housing, regardless of the state of the economy. This fact alone ENSURES the recovery of the housing market.

Cycles. The economy is a cycle, and like a cycle, what goes down must come back up. Once this happens, it will create INSTANT equity for you. That means you will have earned FREE money just by living in your home, which you are going to do regardless of where you live. Why not buy a home and earn free money in the process?

Mortgages. Many people think a mortgage is just like paying rent, right? WRONG! With the right fixed-rate mortgage, you are basically ensuring the same payment for thirty years. If you try to rent an apartment for thirty years, odds are that every year or so, your rent will be increased. That does not happen with mortgages.

Ownership. Owning a home is a GREAT accomplishment and it allows you to express yourself in the best way possible. You can decorate it any way you want, furnish it, paint it, and improve it and all the while you will be increasing its value and the value of your investment. Ownership also gives you and your family a sense of stability and a place to lay your roots.

These are only a FEW of the reasons why right now is a good time to buy a home. A qualified agent will be able to answer any questions you may have and also give you more reasons to consider investing in your next home!

Mitra Karimi, President Crestico Realty http://www.crestico.com

Real Estate Agent Interview Checklist - How to Interview & Choose the Best Real Estate Agent For You

Many people contact me to ask me how to choose the best Real Estate Agent. Choosing the correct Agent can be a daunting task, especially in this economy. With so many foreclosures, short sales, REOs and distressed properties in the market, it makes a potential home buyer's head spin! I have compiled a "checklist" of sorts and put it here for you, Mr. or Ms. Future Homeowner, to use when trying to decide on a Real Estate Agent.

Here is a list of questions and topics you should definitely discuss with an agent you are considering using:
As my Agent, what are the services you will provide me?

This question is meant to be open ended. That Agent sitting across from you is going to make a commission of the sale/purchase of your next home. You will want to know exactly what he or she has to offer. From a sales plan, if you are a seller to a detailed report of the area you are looking to buy in, if you are a Buyer; your Agent should be able to anticipate and address each and every one of your needs and concerns.

What is your plan of action with regard to locating a home for me to purchase?

As a Buyer, you know basically what you want.. but you do not what you do not know. That means your Agent should fill in those blanks. Your Agent should be ready and capable of doing research for you. Do you have children? Your Agent should be prepared with information on the appropriate schools in the area. Are you a jogger? Your Agent should be prepared to show you points of interest that will be in your neighborhood.

How much time will you give me?

We, as Real Estate Agents, LOVE TO TALK. More than talking, we love to talk about ourselves and what we can do. Make sure that when you are having this conversation with your prospective Agent, he/she can talk about what he/she can do FOR YOU and not what he/she has done in the PAST. You do not need to know how he/she did last year, you want to know what he/she is doing this month and how much time he/she has to devote to your needs. An Agent with 20 listings and 10 prospective buyers may not be able to give you the same level of service that an Agent with 2 listings and 2 buyers will be able to give you. Remember, you are looking for a HOME not a pair of shoes...you don't need to scrape the bottom of the bargain bin on this one!

What is the price range you propose for me?

Now this may sound odd to you. Why would you ask your Agent about price ranges when he/she has no idea about your financials. This is where the benefit of working with an Agent that is affiliated with a Broker who has a standing relationship, and in some cases even a dedicated representative, at a Direct Lender comes in handy. When you work with Agents that have outstanding working relationships with Lenders, you get the best of everything in one shot. Your Agent will be able to work with his/her representative at the Lender to make sure your pre-approval letter is ready to go when making offers. When you know how much loan you can get, you know how much home you can buy!

As a Buyer, you will not be paying your Agent, because Buyer's Agents' commissions come from the Seller's proceeds. Even so, you will still need an Agent who will be able to represent your needs accurately and efficiently, while providing you with EXCELLENT customer service. If you encounter an Agent that is not treating you well, GET RID OF HIM/HER - there are too many Agents out there who will be MORE than happy to serve you to the best of their abilities.

Mitra Karimi, President Crestico Realty http://www.crestico.com

Hope For Homeowners

The Hope for Homeowners program is what is being broadcast as the last hope for America's Homeowners. Do you have a question about it? Read on for more information!

As of November 19th, 2008 many changes have been made to the lending system in this country. Primarily, the loan to value ratio (LTV) has been increased from 90% to 96.50% for borrowers whose monthly mortgage payments are no more than 31 percent of their monthly gross income. Next, the process to remove subordinate liens has been simplified. Payments made up front are now allowed to motivate lien holders to give their consent and release the liens; thereby making more borrowers eligible for the program. Also, the terms of financing have been expanded and now incorporate 30 and 40 year amortization schedules, thereby reducing payments amounts.

The "HOPE for Homeowners Act of 2008" creates a new Federal Housing Administration program that will back FHA-insured mortgages to borrowers that are facing problems and stress as a result of their housing situation. New mortgages that will be offered by FHA-approved lenders will encourage and implement the refinancing of abusive, unfair and malicious loans to dramatically improved terms that will allow distressed homeowners who are having difficulty making their mortgage payments some breathing room and enable them to keep their homes and families intact.

If you or anyone you know is facing difficulties when it comes to making their monthly mortgage payments, NOW is the time to act. If you have any questions regarding how this program could work for you, contact your local real estate agent who can help you start saving your future today!

Mitra Karimi, President Crestico Realty http://www.crestico.com

Fannie Mae and Freddie Mac - Who Are They and Why Do We Need Them?

The National Association of Realtors has a message it would like to get across and that message is that "America needs Fannie and Freddie." Who are these people that we have been hearing a lot about in the news lately? They are Fannie Mae and Freddie Mac.

According to Realtor Frances Martinez who was the speaker representative at a House Financial Services Subcommittee hearing on June 3, 2009, "Fannie Mae and Freddie Mac serve an important role in expanding homeownership and providing a solid foundation for our nation's housing financial system...Unlike private secondary market investors, Fannie and Freddie remain active in housing markets during downturns, using their federal ties to facilitate mortgage finance and support homeownership opportunities for all qualified borrowers."

Fannie and Freddie are government sponsored organizations that basically insure the success of our nation's housing system, the cornerstone of our economy. Fannie and Freddie work to make sure that all Americans have and will continue to have access to the fair and affordable mortgages. Just think, without Fannie and Freddie, when the market crashed, there would have been no alternative and all housing sales would have essentially come to a dead stop and this would have thrown our country into a deeper economic crisis.

All in all, Fannie and Freddie basically guarantee that there will be a secondary mortgage markets where people can safely and securely buy their homes and achieve the American dream. Getting a mortgage can be a scary thing. Thankfully, we have a country, a government and a system in place to make sure that the days of predatory lending and fraudulent behaviors in the lending industry are behind us.

Mitra Karimi, President Crestico Realty http://www.crestico.com

Short Sale Real Estate Agents - A Tall Order

The state of today's housing market leaves us all with something to be desired... but what we crave most is a GOOD DEAL. Whether you are a current homeowner, a former homeowner or a future homeowner; knowing what a short sale is and how you can make it work for you can help you save and make tons of money!

Now, if you're a homeowner facing foreclosure, this may be a great way for you to save yourself from the pain and drama of going through a foreclosure. If you're a buyer - you're in luck! Buying a short sale may save you tens of thousands of dollars on your dream home! If you're a current homeowner, not facing foreclosure, buying a short sale may just be that second home (and extra income) you can use to help you retire sooner!

To get started, you will need an agent. But not just ANY agent will do. You will need a specialist. Not just any agent can be a short sale specialist, although many will call themselves just that. You need an agent who is an EXPERT negotiator to deal with a short sale.

First, let's explain what exactly, this type of transaction is. Basically imagine a homeowner owes $500,000 on his home but can no longer make the payments and foreclosure is around the corner. You, as a buyer, can make an offer to the Lender that owns the bank for $400,000 and if you get approved, you've save the homeowner from foreclosure and pocketed a nice $100,000 savings! Extending yourself to distressed homeowners is a great way to be most successful at securing an approval. We have found that homeowners who are more than three payments behind on their mortgages are generally more amenable to such a transaction (and so are their lenders!).

Your agent will be KEY in getting an approval from the bank for you, which is why you must pick the right one! The agent handles negotiations with the bank and make sure that you are truly getting your money's worth.

For more information on how to find the best agent for you, click on the link below!

Mitra Karimi, President Crestico Realty http://www.crestico.com

Making Home Affordable: Obama’s New Program To Help Distressed Homeowners Facing Foreclosure

Making Home Affordable: Obama's New Program To Help Homeowners

President Barack Obama has introduced many ideas and programs in efforts to provide guidance and aid to the millions of struggling homeowners in this country. The sub prime mortgage crisis, fueled by the greed and often negligence of the lending industry's major players has left millions of homeowners facing the worrisome prospect of losing their homes.

On February 18, 2009, President Obama introduced the nation to his housing plan. This plan involves several programs which are designed to help over seven million families potentially facing foreclosure to avoid the grief and stress of a foreclosure by giving them options. These options will include either refinancing or modifying their existing mortgages in hopes of ultimately making those mortgages become affordable and bearable once again. Additionally, Obama's program intends to reinforce and revitalize the federal government's commitment to Government Sponsored Entities, Fannie Mae and Freddie Mac, leaders in the secondary mortgage market.

On March 4, 2009, President Obama's administration released news and information that detailed the intricacies of the program and provided guidance on the Making Home Affordable Program.

While there are several characteristics and facets of this program, the main points for homeowners to know are listed below.

1. The Home Affordable Refinance Program. Under this program, eligible borrowers may refinance loans that Fannie Mae or Freddie Mac (the government sponsored enterprises, or GSEs) own or guarantee. The program can help homeowner-occupants who are current in making loan payments and have loan-to-value ratios (LTVs) above 80 percent but not more than 105 percent. Cash out refinancings are not permitted. The program ends in June 2010.

2. The Home Affordable Modification Program. This is a $75 billion program with lender, servicer, investor, and borrower incentives to make it work. The program is limited to homeowner-occupants who are at risk of default or already in default and who have loans at or below the maximum GSE conforming loan limit of $729,750 (or higher for 2-, 3-, and 4-unit properties). Loan modifications under the program may be made until December 31, 2012.

3. More Support for the GSEs. President Obama also announced more support for the GSEs, including doubling of potential Treasury investment from $100 billion to $200 billion for each GSE, to maintain their positive net worth. The plan also raises the cap on mortgages that the GSEs may hold in their portfolios by $50 billion to $900 billion.

Ultimately, this program intends to set this country back on the path to growth, profitability and success. Hopefully, with the government's continued support and diligence on the part of homeowners, we, as a nation, will begin to see the signs of recovery soon.

The Mortgage Crisis: Who Fannie and Freddie Are and Why We Need Them to Help Us With Our Mortgages

The National Association of Realtors has a message it would like to get across and that message is that "America needs Fannie and Freddie." Who are these people that we have been hearing a lot about in the news lately? They are Fannie Mae and Freddie Mac.

According to Realtor Frances Martinez who was the speaker representative at a House Financial Services Subcommittee hearing on June 3, 2009, "Fannie Mae and Freddie Mac serve an important role in expanding homeownership and providing a solid foundation for our nation's housing financial system...Unlike private secondary market investors, Fannie and Freddie remain active in housing markets during downturns, using their federal ties to facilitate mortgage finance and support homeownership opportunities for all qualified borrowers."
Fannie and Freddie are government sponsored organizations that basically insure the success of our nation's housing system, the cornerstone of our economy. Fannie and Freddie work to make sure that all Americans have and will continue to have access to the fair and affordable mortgages. Just think, without Fannie and Freddie, when the market crashed, there would have been no alternative and all housing sales would have essentially come to a dead stop and this would have thrown our country into a deeper economic crisis.

All in all, Fannie and Freddie basically guarantee that there will be a secondary mortgage markets where people can safely and securely buy their homes and achieve the American dream. Getting a mortgage can be a scary thing. Thankfully, we have a country, a government and a system in place to make sure that the days of predatory lending and fraudulent behaviors in the lending industry are behind us.

How To Start The Home Buying Process

Starting the Home Buying process

Choose a professional who specializes in residential real estate. She or he should have specific knowledge of the local real estate and mortgage markets.

Consider references carefully. An experienced, confident Agent can provide you with names of recent buyers in your market with whom he or she has worked.

Select a professional who will listen to you. Your Agent should be interested enough in you to find out about you and your housing needs and preferences.

Select a professional who puts service first. Strong customer service is key in today's real estate business. For Crestico Real Estate Agents, this service goes above and beyond giving buyers only what they expect and need. Your Crestico Real Estate Agent can show you any house that's for sale in your market - not just the homes listed by our company. If you see a house for sale that you like, arrange a viewing through us.

Listing Your Home in Today's Market Requires the Help of the Best Agent to Get You THE BEST PRICE

To sell your home, you'll need more than yard signs and advertisements. You need a Crestico Agent who will work as your full-service advisor and negotiator to get you exactly what you need to sell your home more quickly and easily by:

1. Helping you set the right price on your home to attract the right buyers and the sales professionals who work with these buyers.
2. Gathering data that will present your house and neighborhood in the best light.
3. Targeting the market where the most likely buyers will be.
4. Qualifying calls from people who may be more curious than serious about buying
5. Showing your home to the best prospects
6. Skillfully representing you during the offer process
7. Doing the necessary paperwork and legwork in a timely manner.
8. Guiding you through settlement.

To sell your home, you'll need more than ads and signs. When you work with a Crestico Agent, you'll receive top-notch, priority service, in addition to ads and signs. When working with you to sell your home, the goals of our Real Estate Agents are:

• To obtain the best possible price for your home
• Negotiate the most favorable terms
• Secure a buyer in the shortest period of time
• Relieve you of the stress and inconvenience that can occur when selling a home

If you are thinking of selling a home, or want to talk with an expert Real Estate Agent, please work with a Crestico Agent. An agent at one of our local offices will be glad to talk with you, and help you in all of your Real Estate needs.

Hope For Homeowners Program - How Can It Help You?

The Hope for Homeowners program is what is being broadcast as the last hope for America's Homeowners. Do you have a question about it? Read on for more information and feel free to use the contact information below, to get PERSONALIZED answers to any questions you may have!

As of November 19th, 2008. many changes have been made to the lending system in this country. Primarily, the loan to value ratio (LTV) has been increased from 90% to 96.50% for borrowers whose monthly mortgage payments are no more than 31 percent of their monthly gross income. Next, the process to remove subordinate liens has been simplified. Payments made up front are now allowed to motivate lienholders to give their consent and release the liens; thereby making more borrowers eligible for the program. Also, the terms of financing have been expanded and now incorporate 30 and 40 year amortization schedules, thereby reducing payments amounts.

The "HOPE for Homeowners Act of 2008" creates a new Federal Housing Administration program that will back FHA-insured mortgages to borrowers that are facing problems and stress as a result of their housing situation. New mortgages that will be offered by FHA-approved lenders will encourage and implement the refinancing of abusive, unfair and malicious loans to dramatically improved terms that will allow distressed homeowners who are having difficulty making their mortgage payments some breathing room and enable them to keep their homes and families intact.

If you or anyone you know is facing difficulties when it comes to making their monthly mortgage payments, NOW is the time to act. If you have any questions regarding how this program could work for you, contact us and we will help you starting saving your future today!

Is Right Now A Good Time To Be In The Market To Buy A Home?

Is It A Good Time To Buy A Home?

The simple answer is YES! It is still a good time to buy a home. With the help of the right agent, you can make this "good time" into a "great time" for you and your family. The news is full of stories about the housing crisis, homeowners losing their homes, and the overall bad state of the economy. Not all of this news, however, has to translate into dissuading you from buying a home. In fact, right now is a very good time, especially for some, to jump in and achieve the American dream of home ownership. As of late, the housing market is starting to look better. Read on for more information about why it is still a good time to buy a home.

First, the government is looking to help you. If you are a first time buyer (which, to the government, is defined as anyone who has not owned a home in the last three years), you are entitled to a maximum $8,000 tax credit. Additionally, interest rates are at all-time lows and the Federal government is taking steps to insure and make these loans available to more and more people.

Leverage. Leverage is defined basically as borrowing money to supplement existing funds for investment. Imagine if you invested ten thousand dollars in stocks and those stocks earned ten percent, you would have earned one thousand dollars. But investing ten thousand dollars on a home, and having that home's value increase ten percent; effectively, you would have earned ten thousand dollars. Which sounds like a better investment to you?

Next, you have to live somewhere. And so does everyone else. According to nationwide statistics, approximately 800,000 new households are created each year in the United States alone. Each of these households will need housing, regardless of the state of the economy. This fact alone ENSURES the recovery of the housing market.

Cycles. The economy is a cycle, and like a cycle, what goes down must come back up. Once this happens, it will create INSTANT equity for you. That means you will have earned FREE money just by living in your home, which you are going to do regardless of where you live. Why not buy a home and earn free money in the process?

Mortgages. Many people think a mortgage is just like paying rent, right? WRONG! With the right fixed-rate mortgage, you are basically ensuring the same payment for thirty years. If you try to rent an apartment for thirty years, odds are that every year or so, your rent will be increased. That does not happen with mortgages.

Ownership. Owning a home is a GREAT accomplishment and it allows you to express yourself in the best way possible. You can decorate it any way you want, furnish it, paint it, and improve it and all the while you will be increasing its value and the value of your investment. Ownership also gives you and your family a sense of stability and a place to lay your roots.

These are only a FEW of the reasons why right now is a good time to buy a home. A qualified agent will be able to answer any questions you may have and also give you more reasons to consider investing in your next home!

Questions To Ask When You Are Interviewing And Choosing a Real Estate Agent

Many people contact me to ask me how to choose the best Real Estate Agent. Choosing the correct Agent can be a daunting task, especially in this economy. With so many foreclosures, short sales, REOs and distressed properties in the market, it makes a potential home buyer's head spin! I have compiled a "checklist" of sorts and put it here for you, Mr. or Ms. Future Homeowner, to use when trying to decide on a Real Estate Agent.

Here is a list of questions and topics you should definitely discuss with an agent you are considering using:

As my Agent, what are the services you will provide me?

This question is meant to be open ended. That Agent sitting across from you is going to make a commission of the sale/purchase of your next home. You will want to know exactly what he or she has to offer. From a sales plan, if you are a seller to a detailed report of the area you are looking to buy in, if you are a Buyer; your Agent should be able to anticipate and address each and every one of your needs and concerns.

What is your plan of action with regard to locating a home for me to purchase?

As a Buyer, you know basically what you want.. but you do not what you do not know. That means your Agent should fill in those blanks. Your Agent should be ready and capable of doing research for you. Do you have children? Your Agent should be prepared with information on the appropriate schools in the area. Are you a jogger? Your Agent should be prepared to show you points of interest that will be in your neighborhood.

How much time will you give me?

We, as Real Estate Agents, LOVE TO TALK. More than talking, we love to talk about ourselves and what we can do. Make sure that when you are having this conversation with your prospective Agent, he/she can talk about what he/she can do FOR YOU and not what he/she has done in the PAST. You do not need to know how he/she did last year, you want to know what he/she is doing this month and how much time he/she has to devote to your needs. An Agent with 20 listings and 10 prospective buyers may not be able to give you the same level of service that an Agent with 2 listings and 2 buyers will be able to give you. Remember, you are looking for a HOME not a pair of shoes…you don't need to scrape the bottom of the bargain bin on this one!

What is the price range you propose for me?

Now this may sound odd to you. Why would you ask your Agent about price ranges when he/she has no idea about your financials. This is where the benefit of working with an Agent that is affiliated with a Broker who has a standing relationship, and in some cases even a dedicated representative, at a Direct Lender comes in handy. When you work with Agents that have outstanding working relationships with Lenders, you get the best of everything in one shot. Your Agent will be able to work with his/her representative at the Lender to make sure your pre-approval letter is ready to go when making offers. When you know how much loan you can get, you know how much home you can buy!

As a Buyer, you will not be paying your Agent, because Buyer's Agents' commissions come from the Seller's proceeds. Even so, you will still need an Agent who will be able to represent your needs accurately and efficiently, while providing you with EXCELLENT customer service. If you encounter an Agent that is not treating you well, GET RID OF HIM/HER – there are too many Agents out there who will be MORE than happy to serve you to the best of their abilities.

Will a Loan Modification Help you Lower Your Mortgage Payments and Avoid Foreclosure?

Will a Loan Modification Work for you?

The term "Loan Modification" is one that is being used often and repeatedly in the news and society today. In spite of its prevalent use, many people are not sure of what a loan modification is exactly. Sure, it is a "modification" of a "loan," but beyond that, how can you tell if a Loan Mod, as it is often called, is right for you?

First, you have to know what it is. A Loan Mod is basically an alteration of the existing terms of a loan. These terms can include the amount/due date of monthly payments, the interest rate, term or duration of payments on the loan. Any alteration that does take place, however, can only be done with the approval of the Lender. This process of working with the lender to alter the terms of the loan usually comes about when a person can no longer afford to timely make the payments on the loan. Often, engaging in and completing a loan modification can save a borrower from defaulting on a loan.

A vast majority of borrowers that are currently seeking Loan Mods are borrowers who have ARMs. ARMs are Adjustable Rate Mortgages, meaning that they are mortgages that do not have a fixed interest rate but one that varies. A major difficulty that borrowers often face when they are in ARMs is that because the interest rate is variable, meaning that it changes, the amount of the monthly payments a borrower is required to make, changes as well.

A Loan Mod is a good option for a borrower who: a) does not want to experience any negative tax consequences and b) does not want to have negative marks on his/her credit report. While there are other means of modifying the terms of a mortgage (i.e. forbearance, or short sale), a Loan Mod will enable a borrower to keep his/her home while making a decreased payment. A Loan Mod is an excellent way to avoid foreclosure.

Career Advice for Real Estate Agents

Being a Real Estate Agent is exhilarating. The rush you feel when a deal finally closes and you are waiting for that wire transfer is unparalleled by any other paycheck you will receive. But this rush does not come easy, nor does it come quick. Being a good agent requires a certain level of patience and stamina. Closing a deal is akin to running a marathon, you have to be in it for the long haul; because it’s rarely a sprint. Here is some advice for Real Estate Agents that will help you endure the marathon and finish with flying colors.

Invest in yourself. The investment you make into your career is one that you make into yourself. From time and effort to clothing and personal hygiene, the more you tend to your own needs, the more your clients will feel that you are capable of tending to their needs. As a Real Estate Agent, you will probably work evenings and weekends. While your schedule will remain flexible, remember to address and exceed your customer’s expectations with regard to your time and availability. It will often become necessary to show a home or take a listing appointment in the evening, or a weekend may be the only time you can write up an offer. Regardless of whether you plan to be a full-time or part-time agent, in order to be successful, you will need to make yourself available when your customers are available. If you are committed to success, and are willing compromise your time, to best serve your customers; there is no limit to the benefits you will enjoy as a result of this career choice.

The amount of time you invest in your career will directly impact what you reap. You’ve heard the saying "you reap what you sow" and real estate is no exception. A great way to maximize the benefits you receive as a result of the time you invest, is to educate yourself. Bu "educate" we mean that you should spend time reading, researching and talking to folks. Get a feel for the wants and needs of buyers and sellers; demonstrate your clear understanding of their concerns early on in conversations and you’re sure to grab their attention. Also, stay on top of industry news and market conditions. Doing this will make you seem like an "expert" and generate a sense of trust and reliance between you and your potential clients. Finally, think about new ways to reach potential customers. You can do this by attending events, networking or even joining social networking sites.

Much of the help and training you will receive will come from your employing broker. This is why it’s so important to choose the RIGHT one. Your real estate broker will help you in many ways, matching your efforts and investments by making some of his/her own and supporting your work and providing direction.

Investing in Your Real Estate Career

Investing in Your Real Estate Career

Have you ever thought about doing real estate as a full-time profession? Have you heard the term "buyer's market" and want to know how YOU can capitalize on that? If you're considering a real estate career, or have begun one and are still new to the industry, there are a few things that are important to keep in mind as you travel along this journey.

First, keep in mind that in real estate, as with most things, the rate of your success is directly related to the amount of "investment" you make. Now, you are probably thinking " I have to SPEND money to make money?!" Yes and no. The investment that we are referring to here is mainly made up of time and effort, but you may need to invest some money into your career. Careers are like homes, they may seem perfect but they can always stand a little work. Here are some things you'll need to consider.

Automatic success does not exist. While we believe that almost anyone can be successful at a career in real estate, no one does so automatically. Unless your daddy is a real estate mogul and buys a multitude of million dollar properties every month, you will need to work at it. A very smart real estate agent told me once, about her career, that she loves real estate because "you eat what you kill" and that is so true. You do have to put effort into your work, just like in any career, to become truly successful. This advice will help you to think about what you need to do to better serve your customers, and to grow your real estate career. For more advice and information, feel free to contact me directly.

Selling Your Home: Easy Things You Can Do To Help It Sell Quicker

Once you’ve decided that you want to sell your home, you want to make sure that it does not sit on the market for too long.  Getting a good agent will definitely help you with that, but before you talk to an agent, here are a few pointers regarding things YOU can do that will help you sell your home quickly and efficiently. 

The squeaky back door.  Fix it! While you may find the squeaky door reminds you of holidays past and family gatherings, potential buyers see that as one more thing that “needs work.”  Take a slow, long, deliberate look at every room in your house and address all small repairs that need to be done.  We’re not saying reface the kitchen, we’re saying fix squeaky doors and screens, maybe touch up the paint where it’s been scratched, fix the “little” things that may send a signal to a buyer that maintenance may be an issue.

Your grandpa’s stuffed deer head.  Pack it! Family heirlooms and knick knacks and things that cause clutter must be eliminated.  You’re trying to sell your house to move, so start packing early.  Get rid of things that fill up the living space in the house.  You want to make your potential buyers feel like they are in a big, open, airy home; not YOUR home.  Make it easy for buyer to walk around and see all the beautiful parts of your home.  They don’t need to see your silver Tiffany spoon collection in its display case.  Besides, always hide valuables before an open house!

Along with Grandpa’s deer should go the life-size family portrait from the reunion at Disneyworld!  Everyone has a family, and we’re sure yours is beautiful; but your open house is NOT the place to show off your extended family photos.  When Buyers are viewing your home, they are trying to picture their OWN family photos and artwork on your walls.  Help them see their belongings in your home, by giving them more to work with.  Limit your decorations to isolated and bold objects and let your buyer’s imagination do the rest.

Bust out the gloves and cleaning supplies.  Now that you have taken down some of the art and cleared away the knick knacks, you’ve revealed a lot more of your home’s inner beauty.  And some of it, has been hidden for a while, so it may be dusty! We suggest you get your home as close to immaculately clean as possible.  The cleaner and more fresh-smelling your home, the more pleasant emotions you evoke in your potential buyers.  No buyer wants to buy the “doggy breath” house.  Make sure to pay extra attention to pet-worn areas. Your buyer may not have the same love of canines as you, and that’s ok! So make your home shine!

Don’t forget to look down!  Flooring is one of the first things a potential buyer will notice about your home.  Don’t spend lots of money installing new flooring, but make the best of what you’ve got.  Pack up area rugs and mats, and make sure the floor is definitely clean. 

All the world’s a stage, and your home is NO exception!  Staging has become a key factor in home sales.  Staging allows the best features of each room in your house to stand out.  You can get help from a decorator or try to do it yourself.  Maximize views and play up focal points in each room.

Roll out the red carpet. Your home is going to be listed on a listing service (if your agent is any good) but the first thing potential buyers will see is a picture of your home, from the outside.  So, we suggest you roll out the red carpet, and pay some attention to your landscaping and the exterior appearance of your home.  This is what is going to make a young couple on a weekend house hunt yell “STOP!” to their agent when they drive by; and it’s also what is going to get a person searching the internet and seeing the picture want to make an appointment for a showing.

With this advice, and the help of a good agent, you will surely be able to sell your home faster and easier than you ever thought possible.

 

 

 

Mitra Karimi-Paydar

Crestico Realty

(310) 362 - 0828 (TEL)

(877) 881-2929 (FAX)

mitra.karimi@crestico.com

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Loan Modifications: What Are They and How They Work

What is a Loan Modification?

Loan Modifications are something you have been hearing much about lately.  Often, the people advertising these modifications do not explain the process clearly before they gather your information.  Here is an easy to understand explanation of what a Loan Modification is.  

Basically, a Loan Modification (called Loan Mod, for short) is a process that an attorney or other real estate professional will use to “modify” the terms and conditions of an existing loan.  Currently, most of these modifications are being applied to mortgages, but could potentially be applied to any type of loan.  This modification in terms generally only takes place AFTER the issuer of the loan (the lender) has granted approval to do so.  Approvals are generally based on comprehensive review and consideration of all material factors.

A common reason for the request and subsequent approval of a modification arises from some sort of financial hardship that affects the borrower’s ability to repay the loan.  In the current economy, where layoffs are becoming more prevalent and more and more borrowers are entering the many stages of foreclosure, many borrowers are facing very real and legitimate hardships that severely impact their ability to repay their loan obligations. 

When lenders are considering granting modification approvals, they will often consider the borrower’s payment history and standing with respect to the subject loan.  Most borrowers are diligent and make the appropriate payments in an appropriate manner.  This will often help the lender to choose to allow a modification rather than institute a foreclosure.  The foreclosure process is a timely and expensive method for recovering the property.  Also, it should be considered that in the current market, lenders have many properties that are non-performing, which is to say that they have been foreclosed or abandoned, and modification may be the lender’s only option to keep a borrower paying.

Another factor lenders consider in granting approvals is, should such approval be granted, will the borrower be able to begin and continue making payments in a timely fashion under the new terms.  Generally, to secure a modification, a borrower must be able to demonstrate some ability to overcome the current financial hardship and ensure that he/she will be able to pay back the loan in an acceptable manner.

Modifications may take shape in different forms.  Once a lender has decided to grant approval, this approval may be either to lower the monthly payment amount, thereby making it easier for the borrower to stay current.  In this case, the difference in the amount of the payments will be added to the “back end” of the loan, thereby extending the term of the loan.  Also, a lender may decide to lower the interest rate on the loan, thereby reducing the payment with no addition to the total loan amount, lowering only the amount of interest paid. 

 

 

 

 

Mitra Karimi-Paydar

Crestico Realty

(310) 362 - 0828 (TEL)

(877) 881-2929 (FAX)

mitra.karimi@crestico.com

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