Buying a home can be very exciting! It’s part of the "dream" we all have for ourselves, the marriage, the family, the pet, the white picket fence – all of these things are dependent on having a home. Having means owning, not renting; to those of us wishing to make the most of our hard-earned money. But making the most of your money is not always easy – it takes a little bit of savvy and a lot of consideration.
Consideration means research, research and some more research. You need to know the facts. Not just about the home you are buying, but also the city, community, history and future projections, to help you determine whether this investment is right for you. While buying a home is not permanent – it is long term and you need to make sure the home you select matches your long-term lifestyle choices.
Budgeting – this is key! You do not want to get yourself into a home you cannot comfortably afford, or you will end up working and never being home to enjoy it; or unfortunately even potentially risking losing it or other valuable items in your life.
•Get familiar with home buying terminology. Know the difference between the types of loans, insurance, interest rates and programs available to you.
•Figure out your budget. Work with your loan consultant to determine what you can actually afford to pay on a monthly basis. Remember, a mortgage payment is not just principal and interest, there are taxes and insurance that will need to be paid. Also, the community you select a home in may have a homeowner’s association that charges a monthly fee. These are all in addition to the increased utilities, maintenance and potentially security costs that go along with owning a home. Remember, there no "super" to call when that toilet gets clogged!
•Get rid of your old bills! You’ll have lots of new bills to replace those! Try to pay off all your existing credit card bills. The less debt you have, the better loan you will qualify for.
• Read your paper work. HUD has a handy booklet on its site called "Buying Your Home: Settlement Costs and Helpful Information." It describes the home buying and settlement process and explains most of the expenses you will encounter. Although your lender will give you a copy, it’s a good idea to read it before you even consider applying for a loan.
• Ask questions. Make sure your loan and real estate consultants are the kind of people who take the time to explain every single step of the process and answer each of your questions. They are there to serve YOU! Buying a home is a serious decision and the people helping you should appreciate the opportunity to serve you. The service you receive should be attentive, respectful and consistent!
For more information, please visit www.crestico.com.
Monday, August 1, 2011
Helpful Tips To Guide You In Buying Your First Home
The American Dream: Home Ownership
The National Association of Home Builders ("NAHB") recently reported that Americans still believe in home ownership.
Americans still believe that a strong housing industry means more jobs and more money to keep local economies growing, and that the government should continue to promote homeownership through tax incentives.
A new survey found that nearly three out of four American voters—73 percent—believe that it is reasonable and appropriate for the federal government to provide tax incentives to promote homeownership.
And 81 percent of voters are convinced we should do more to improve the housing finance system because we need policies that encourage homeownership if we want to rebuild the middle class.
"Every new single-family home built creates three full-time jobs and increases the property tax base that supports local schools," said National Association of Home Builders (NAHB) Chairman Bob Nielsen, a home builder from Reno, Nev. "The American public recognizes that to restore the health of the economy, we need policies that support opportunities for homeownership."
The poll, which was conducted on behalf of NAHB, also found that an overwhelming majority of respondents oppose eliminating the mortgage interest deduction and would be less likely to support a candidate for Congress who wants to do away with this vital tax incentive.
"Despite the current housing downturn, Americans still see homeownership as a key building block of being in the middle class and creating strong jobs in their communities," said Celinda Lake, president of Lake Research Partners, which conducted the survey along with Public Opinion Strategies.
Other key survey findings include:
•75 percent of voters say that owning a home is the best long term investment they can make.
•73 percent of voters who do not now own a home say that it is a goal of theirs to eventually buy a home.
•Among voters who are aware of proposals under consideration by Washington policymakers to raise the down payment requirements for a home loan, 92 percent believe it will make it more difficult to buy a home.
Neil Newhouse, partner and co-founder of Public Opinion Strategies, said, "The administration and some in Congress are floating plans to curtail or even abolish the mortgage interest deduction and impose changes that would make it much more difficult and expensive to get a home loan. This is in direct opposition to the views of most Americans, who want the government to encourage growth in the housing market and to maintain tax incentives to keep housing affordable."
For more information, please visit www.crestico.com.
Thursday, July 21, 2011
Should I Buy A Home?
The question that I get asked most often from client is "Is it a good time to buy a house?" Well, the answer to this question almost always depends on who is asking and what his/her reasons for buying a home are. Often people fall into the traps of wanting to buy a home so badly that they overlook many of the dangers and potentially stressful things that could happen down the line.
Many of my short sale clients have made themselves "house poor" (as the Department of Housing and Urban Development calls it). This is something I often warn my clients about. Being "House Poor" means that "… by putting too much emphasis (and income) into your housing expense, you may be forced to cut other expenditures, whether it be for travel, entertainment or some more important needs, such as education expenses or retirement funding."
By making inappropriate housing decisions, many have exposed themselves to a great deal of financial exposure. By pushing themselves to their financial limits, they find themselves unable to meet their mortgage payment obligations as that payment takes a higher percentage of their income. When funds get short, other loans and obligations (and credit ratings) can and will suffer.
Additionally by not completely understanding the economic state of the nation, often homebuyers ignore housing values. Economic downturns are often accompanied by, at the very least, stagnation in housing values. And, even though it sounds crazy in markets that have seen double-digit annual appreciation in recent years, occasionally housing values will decline (as they have in recent years). Worse than a situation where it is difficult to pay the mortgage is one where there is the prospect of losing a home--or trying to sell it in a distressed market.
However, for savvy buyers with steady incomes, good credit and supple savings – this is a great time to buy a home. Firstly, mortgage interest rates are at their lowest levels years, meaning lower payments and the ability to devote less income to housing expenses. However, buyers should be warned against buying more house than they need simply because they can afford the payment.
Because less people are getting qualified for loans, there is less competition. As the market softens, less buyers will be in the market, meaning that negotiating position will be enhanced--and, it is unlikely that buyers will have to pay thousands of dollars over the listing price in order to get the home they want. More negotiating power usually means lower prices and lower monthly payments.
All in all, it can be a good and a bad time to buy a home depending on who you are and your financial health.
For more information, please visit www.crestico.com.
Should I Buy A Home?
The question that I get asked most often from client is "Is it a good time to buy a house?" Well, the answer to this question almost always depends on who is asking and what his/her reasons for buying a home are. Often people fall into the traps of wanting to buy a home so badly that they overlook many of the dangers and potentially stressful things that could happen down the line.
Many of my short sale clients have made themselves "house poor" (as the Department of Housing and Urban Development calls it). This is something I often warn my clients about. Being "House Poor" means that "… by putting too much emphasis (and income) into your housing expense, you may be forced to cut other expenditures, whether it be for travel, entertainment or some more important needs, such as education expenses or retirement funding."
By making inappropriate housing decisions, many have exposed themselves to a great deal of financial exposure. By pushing themselves to their financial limits, they find themselves unable to meet their mortgage payment obligations as that payment takes a higher percentage of their income. When funds get short, other loans and obligations (and credit ratings) can and will suffer.
Additionally by not completely understanding the economic state of the nation, often homebuyers ignore housing values. Economic downturns are often accompanied by, at the very least, stagnation in housing values. And, even though it sounds crazy in markets that have seen double-digit annual appreciation in recent years, occasionally housing values will decline (as they have in recent years). Worse than a situation where it is difficult to pay the mortgage is one where there is the prospect of losing a home--or trying to sell it in a distressed market.
However, for savvy buyers with steady incomes, good credit and supple savings – this is a great time to buy a home. Firstly, mortgage interest rates are at their lowest levels years, meaning lower payments and the ability to devote less income to housing expenses. However, buyers should be warned against buying more house than they need simply because they can afford the payment.
Because less people are getting qualified for loans, there is less competition. As the market softens, less buyers will be in the market, meaning that negotiating position will be enhanced--and, it is unlikely that buyers will have to pay thousands of dollars over the listing price in order to get the home they want. More negotiating power usually means lower prices and lower monthly payments.
All in all, it can be a good and a bad time to buy a home depending on who you are and your financial health.
For more information, please visit www.crestico.com.
Financial Health
Did you know that the average credit score required nowadays to get approved for a loan is 140 points HIGHER today than it was just a few years ago? That’s a lot when you consider that credit only ranges from 100 to 850.
One of the most important factors in getting a loan to buy a home has been credit, and it remains to be quite significant when filling out applications for loans. This is in large part, due to the economy. The mortgage crisis we have been witnessing over the past 4 years had major impacts on the lending industry and institutions became less willing to extend credit, even to those who are well-qualified.
Financial responsibility is key! Those with poor credit are faced with less and less options, making it harder and harder to realize the American dream of owning your own home.
Qualifying for a loan isn’t the end of the story.. it’s just the beginning. Just because you qualify doesn’t mean you are getting a good rate. The difference that just 0.25% can make on a $500,000 loan is over $1000 a year, multiplied by 30 years, that’s $30,000 that could have been saved over the life of the loan. What could you do with an extra $30,000?
Financial Health
Did you know that the average credit score required nowadays to get approved for a loan is 140 points HIGHER today than it was just a few years ago? That’s a lot when you consider that credit only ranges from 100 to 850.
One of the most important factors in getting a loan to buy a home has been credit, and it remains to be quite significant when filling out applications for loans. This is in large part, due to the economy. The mortgage crisis we have been witnessing over the past 4 years had major impacts on the lending industry and institutions became less willing to extend credit, even to those who are well-qualified.
Financial responsibility is key! Those with poor credit are faced with less and less options, making it harder and harder to realize the American dream of owning your own home.
Qualifying for a loan isn’t the end of the story.. it’s just the beginning. Just because you qualify doesn’t mean you are getting a good rate. The difference that just 0.25% can make on a $500,000 loan is over $1000 a year, multiplied by 30 years, that’s $30,000 that could have been saved over the life of the loan. What could you do with an extra $30,000?
Wednesday, July 20, 2011
How to get the lowest home mortgage refinance rates?
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How to get the lowest home mortgage refinance rates?
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Are you struggling with your monthly mortgage payments? If answered yes, you must try your best to refinance your home loan as this is the best way to get back on your current monthly mortgage payments. Most mortgage loans carry high interest rates and with the unemployment rate touching a record level, an increasingly large number of homeowners are not being able to cope up with their monthly mortgage installments. Refinancing is just taking out yet another home loan with favorable interest rates and terms so that you can repay the previous loan with ease. While there are many homeowners who want to refinance their home loans, they all love to know the ways in which they can get the best refinance rates in the market. Have a look at the ways in which you may secure low rates on the refinance loan.