Posted by
admin on Mar 5, 2010 in
Buying,
Real Estate by Brandon Cornett
Beginning a home search can be a somewhat disconcerting task. Perhaps the biggest question many first time homebuyers have is where to begin the process. Some people begin by looking at real estate magazines or websites, while others call real estate agents right off the bat. The process varies.
So, what is the best way to begin your quest for a new home? In truth, any way you begin the process is a good way, because the most important thing is to get started. After all, you will learn a lot as you go. But there are some things to keep in mind:
Do the Proper Research
Buying real estate can be an overwhelming experience for the first-time buyer. But you can make the process much easier simply by understanding it. Start with the lingo. By learning the terminology associated with home buying and mortgage, you will make smarter decisions along the way.
Set Your Budget
The best way to begin looking for a home is to first sit down with a mortgage lender to determine how a high a mortgage you can afford and be approved for. Remember, there is a difference between the loan amount you can be approved for and the amount you can actually afford. So in the end, only you can determine your home buying budget — not a mortgage lender.
When dealing with a mortgage lender you will want to provide him or her with an understanding of what mortgage payment you are comfortable making so they can give you a sense of the size of the mortgage that equates to, based on your credit, income and other factors.
Taking this step first will help “frame” your home search so you are only looking at homes within your budget range. Many first time homebuyers fail to take this step and therefore waste time and energy looking at homes that are well above their budget.
You can find plenty of websites that offer mortgage calculators, and these tools are a good place to start when determining your budget. Just keep in mind that the one variable you can never predict in advance is the interest rate. Only by speaking to a lender can you get a full mortgage quote that includes the interest rate (based on your credit history).
Get Pre-Approved for a Mortgage
Another reason you may wish to start with speaking to a mortgage lender is so you can be prepared to show a pre-approval letter to the seller. This gives them the confidence that you can buy their home, which is especially important for homes where more than one buyer makes an offer (i.e. a seller’s market). Do not confuse pre-qualification with pre-approval. Pre-qual is an informal process in which the lender tells you how much of a mortgage you might qualify for. Pre-approval, on the other hand, is a more formal review of your finances and is likely to reflect the actual loan amount the lenders extends to you. In other words, the person selling the home will pay more attention to the pre-approval letter.
Though there is no wrong way to begin a search for a new home, meeting with a mortgage lender first may be the best way to begin your search and find your dream home. Just remember to always keep an open mind when visiting each property and envision the possibilities. You must also stay realistic about your finances and do your best not to over-extend yourself by purchasing a home beyond your means.
© 2009, Cornett Communications.
About the Author: Brandon Cornett is a consumer advocate and publisher of the Home Buying Institute. You may visit the author’s website at www.HomeBuyingInstitute.com to learn more about this topic.
Tags: begining the home buying process, beginning a home search, buying a home, first time home buyers, home buying process
Posted by
admin on Mar 5, 2010 in
Finances by Brandon Cornett
If you’re planning to buy a home in the near future, you should know your FICO credit score. In fact, your credit score is one of the three most important factors considered by mortgage lenders (along with your debt and income levels). If your score is high, you’ll have a much better chance of getting approved for a loan. You’ll also qualify for a better interest rate, which could save you thousands of dollars over the life of the loan.
It’s important to check your FICO score early on in the home-buying process, because it takes time to improve a low score. While you’re entitled to a free credit report per year, you’ll have to pay a small fee for the credit score. They are two different things. You can purchase your score from MyFICO.com — this is the company that actually designed the FICO scoring model.
But what if you check your score and find out that it’s low? You could qualify for certain types of loans with a score in 600 range, but you’ll be much better off in the mid- to upper-700 range. The question now becomes: How do I Improve my score? And that brings us to the purpose of this article.
5 Good Sources of Credit Information
Here are five websites worth visiting, if you want to learn more about your credit reports and scores:
- www.myfico.com — We touched on this website earlier. This site is owned by the Fair Isaac Corporation, the company that created the credit-scoring model used by most lenders. They have plenty of educational articles, as well as a forum where you can post questions. It’s well worth a visit.
- www.homebuyinginstitute.com/credit.php — On this page, you’ll find a collection of more than 100 articles relating to consumer credit. This collection was compiled over a two-year period, as readers sent in their questions. If you have a question about credit reports and scores, you’ll find the answer on this site.
- www.annualcreditreport.com — This website is jointly owned by the three credit-reporting companies (TransUnion, Equifax and Experian). This is where you should go to request your free reports. This is the only site that is regulated by the Federal Trade Commission.
- www.ftc.gov/freereports — Why do so many people offer “free” credit reports, and then try to charge you for stuff? It’s a marketing strategy referred to as bundling, and you can learn the truth about it on this website.
- www.bankrate.com — This site is a treasure trove of helpful advice. In addition to credit tips, it explains the mortgage process in great detail. Start with a keyword search, or click on the “news and advice” link.
Research is the first step to home-buying success. The five resources listed above will help you get started on the right foot.
© 2009, Cornett Communications.
About the Author: Brandon Cornett is a consumer advocate and publisher of the Home Buying Institute. You may visit the author’s website at www.HomeBuyingInstitute.com to learn more about this topic.
Tags: buying a home, credit score, free credit report, free credit score, home buyers, mortgage qualifications
In today’s current market many real estate agents have to look to other areas to help them earn revenue to augment their home marketing income. Some agents have spouses that earn a steady income that helps pay the bills during the time that listings are waiting for acceptable offers or a market campaign brings fruition with new home buyers. For myself, the decision was based on trying to find soemthing that was complimentary to my main business focus, real estate. To that End I ended up with doing Broker Price Opinions (BPOs). BPOs are very similar to Comparative Market Analysis (CMAs) except that BPOs are more detailed and are done for a fee, while CMAs are at no-cost for a home owner and prospective home seller.
After spending a considerable amount of time doing these BPOs I have come to the conclusion that they are a two-edged sword. On one hand, if you do enough of them for the right price, they are a good source of extra income. However, on the flip side, they are very time consuming and not very cost-effective to do if one does not set some initial ground rules in doing them. But the key question is – are they worth doing? Before I can answer the question, I should go into a bit more detail in what is the process of getting and completing BPOs.
BPOs can be a steady source of additional revenue if you can be assured of getting them each and every month. This may not always be the case due to many factors. One of the biggest factors is the lending institutions. I tend to work with third party servicing companies that go out and solicit business from these lenders. If they are successful, then the service company has quite a lot of orders to fullfill, which they need real estate agents (known as Field Agents) to complete for them. Basically, lenders hire these service companies to give them financial marketing information on a specific property. I can’t go into what details/services the service provides them, but one of the components is the details market analysis of the property, known as a BPO. The Field Agent (FA) is assigned an order to complete a report on. The report is very similar to doing a CMA for a home owner except there is more detail in writing. The FA must go out and take pictures of the property, view the property and the neighborhood. It is of tremendous help if the FA also knows the market area extemely well. This may sound like a no brainer, but there are real estate agents that will only focus on the money (fee paid for order), take the order, and then try to put together whatever they can to get the report accepted. So, now you have a basic understanding of the the BPO process with third party service.
So, to answer the question of are BPOs worth doing, my answer is Yes and No.
For Yes, it is as long as you can be assured of getting a relatively large number per month. Because of this uncertainty, I have relationships with many different service companies that assign BPO orders. This way I can track my revenue from BPOs each month and see how well I am doing. If one servicer is low in assigned orders for me, I can then accept orders from other service companies. Now, one of the rules that I have established for myself in completing BPOs is that I do not accept any drive-by order (referred to as Exterior Orders) for anything less the $50. Anything less is not cost effective for me to take; I have to contend with wear and tear on my car and my time in conducting the research. In that the BPO will not end with me getting a home to list, the fee is the only benefit I can expect to get from them.
The other advantage for me in doing BPOs is more of a non-monetary issue. And that is that BPOs allow me to learn, on almost an on-going basis, what the market is doing in any specific area. If I get a BPO order to complete on a luxury home in a specific development, my research gives me knowledge about what is going on within that specific market segment. This gives me an advantage over other agents in the area who rely only on doing CMAs for home owners. For one thing, the agents need a willing home owner who is interested in the agent’s CMA. Without that home owner, why would the agent do a CMA? I, on thr other hand, always have a willing recipient of my detailed market analysis with the mortgage lenders and banks.
As for the flip side of doing BPOs, the No side, is that they are very time consuming. Even though you are getting a fee for completing a BPO you still need to take the time to drive to the property to take photos and to do the detailed research that the lenders/banks require (i.e. number of vacant homes in the neighborhood, how many homes in the neighborhood are bank owned/foreclosed, the potential rental amount, etc.). This all takes time. And if you are doing a large number of BPOs each month, the time needed can add up very quickly.
So, the question remains. Should agents do BPOs or not? There is that trade-off. While an agent is spending time doing those BPOs they are not farming/soliciting new customers. Their client base can possibly dwindle. If they don’t have time to get on the phone to prospect for new homes sellers, their inventory will shrink.
On the other hand, doing BPOs is an ideal way to keep ones fingers on the pulse of the market. To be ahead of the curve as to what is going on with prices. Because as an agent does more and more BPOs they will tend to get orders from lenders/banks for homes in a cluster of areas over a period of time. I, myself, have done numerous BPOs within the same development many times over the course of a month. Don’t you think that I pretty much have the idea of what is going with prices there? I also see what other agents are doing with their marketing of the homes and the mistakes they make. I’m getting pretty good at predicting if an active listing is going to be a candidate for expiration. I also see the trend of what is happening with the short sale market and where it is heading. Not only do I have to complete the research for the market pertaining to the home I am contracted to do an valuation on, but I am expected to give a detailed analysis of that market area and the homes within there.
So, in a nutshell, it does take quite a bit of time to complete a proper BPO but it is well worth it because my experience and insight helps me serve my customers that much better. When I give an opinion of the expected selling price of their home it is because I have done numerous valuations of homes in their area and I have been watching the trends of prices over a longer period of time. Not like many of the other agents who ran a CMA in the last couple of days because they had a listing appointment. I have watched the market for months while the other agents have had to cram the data and make some verbage up so that the prospective seller will be impressed that they use all the right buzz words and have some fancy charts (that the agents really don’t know what they mean).
The whole BPO activity has only added to my level of knowledge along with my years experience in marketing to better serve my clients/customers.
Terry Iwaniw
REALTOR Associate
ReSales & Investment Realty, LLC
Off: 856-795-3111 x263
Cell: 609-417-1086
http://www.sellmysnjhome.com
http://snjrealestate.ning.com
http://www.snewjerseyhomes.com
Connect on Facebook – http://profile.to/terryiwaniw
Tags: bpo, broker price opinions, cma, comparative market analysis, home prices, home sellers, market prices, market trends, marketing research, prices
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Listed At: $116,000
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Listed At: $72,000
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Listed At: $148,500
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Want to find your own HUD owned home bargain? Don’t miss out on another one! Complete the form here or
call us at
609-417-1086.
Terry Iwaniw
============================
REALTOR Associate
ReSales & Investment Realty, LLC
http://www.terryiwaniw.com/
http://www.njhudsales.com/
Direct: 609-417-1086
Office: 856-795-3111 x263
============================
Tags: bargain homes, buying HUD homes, hud homes sold, HUD owned homes, real estate for sale
Posted by
admin on Jan 12, 2010 in
Finances,
Misce4llaneous If you are impacted by the cold wave or saw your air conditioning bill skyrocket last year, now is a good time to think Efficiency.
Recently there has been a lot in the news about the tax credit for first-time homebuyers, but don’t think there is nothing for existing homeowners. Many sources have told consumers not to stop thinking “energy conservation” now that the price of oil is moderating. It’s a great time to make energy efficient improvements in their homes.
For a complete list of Energy related credits such as new heat pumps and Hybrid cars etc, Click Here. In last year’s stimulus package the government provided for a 10% tax credit of the cost of new windows, doors, roofing, insulation, furnaces, air-conditioning systems and heat pumps. The old rules had a lifetime maximum of $500 total credit.
TAX Credits For New Heating and Cooling Systems From: Houselogic.com
Many in the remodeling industry thought the meager 10% credit was not enough reason to undertake major renovations and they were right. There was no discernible increase in improvement activity tied to the tax credit.
CREDIT vs DEDUCTION As you may know, a tax credit lowers your total tax due dollar for dollar. If you owe the IRS $500 and have a $200 credit, that $500 gets lowered to $300. A tax deduction, however means you can reduce the amount of taxable income that you owe taxes on. The real benefit is seen after your apply your tax bracket. Most times when you figure it out, a Credit is better than a Deduction.
ENTER 2010: In order to both increase economic activity (remodeling) and expand energy efficiency, the new stimulus package raises the tax credit to 30% of the cost. It also tripled the lifetime maximum to $1,500. It is retroactive from Jan 1, of last year and expires at the end of 2010.
For specific information on new Windows and Doors click HERE
Complete Resources here on Energy.gov
The new provisions also apply to newly added systems such as solar-energy panels, water heaters and geothermal heat pumps.
A lot of what is included in the above actions are considered “Energy Star” approved. You can get a better picture of what is and is not covered at
http://www.energystar.gov/index.cfm?c=products.pr_tax_credits
Tags: energy savings, energystar, tax credits
Posted by
admin on Jan 12, 2010 in
Listing,
Marketplace,
Real Estate,
for sale Take Advantage While You Can – 61 Tailor Ln, Sicklerville – Ref#: IE5640776. If ownership is your plan, then come see this 2024-SF HUD owned townhouse on 0.04 acres in Wilton’s Corner. Has 3 bedrooms, 2.5 bathrooms, dining room, casual living room with carpeting, family room, sunny kitchen with laminate countertops, sliding glass doors, deck, patio, front porch, 1-car garage. All properties are sold in ‘As Is’. Please call Terry for more information.
[Click Here for Details]
Moving On Up – 1100 Beechwood Dr, Atco – Ref#: IE5630276. Make the next big step in this 2-story 4-bedroom/2.5-bath HUD owned home on 0.46 acres in Atco. This comfortable floor plan delivers a traditional dining room, relaxing family room, casual living room with carpeting, fireplace for winter days, laundry with w/d included, kitchen with dishwasher, electric range, refrigerator, pool, deck, porch, 1-car garage, fenced yard, patio.All properties are sold in ‘As Is’. Please call Terry for more information.
[Click Here for Details]
No Place Like Home – 933 Ladner Ave, Gibbstown – Ref#: UI5622846. Enjoy a comfortable lifestyle in this 5-bedroom/1.5-bath HUD owned Colonial home on 0.44 acres in Gibbstown. Great features include a casual living room with carpeting, dining room, sunny kitchen with laminate countertops, double sinks, basement laundry, in-ground pool, 1-car garage. This 1,965 sq ft home is only a short drive to I-295. All properties are sold in ‘As Is’. Please call Terry for more information.
[Click Here for Details]
Get Out Of That Lease – 12 Pritchard Ln, Sicklerville – Ref#: UI5637726. And into your own 4-bedroom/2-bath vinyl-siding home in Sicklerville. This convenient floor plan delivers an inviting family room with stone fireplace, master suite with separate shower, gracious dining room, engaging living room with carpeting, captivating kitchen with dishwasher, laminate countertops, gas range, second-floor laundry, fenced back yard for energic toddlers, 2-car garage. All properties are sold in ‘As Is’. All information deemeded and should be independently verified. Please call Terry for more information.
Call For Details or Schedule to View
[Click Here For Details]
The American Dream – 35 Colgate Rd, Atco – Ref#: UI5622828. Starts with homeownership. Come see this 2-story HUD owned Colonial home in Ivystone Farms. Features include 4 bedrooms, 1.5 bathrooms, warm family room, casual living room with carpeting, traditional dining room, sunny kitchen with laminate countertops, dishwasher, first-floor laundry, 1-car garage. Only a short drive to Route 73 or WHP (Route 30). All properties are sold in ‘As Is’. Please call Terry for more information.
[Click Here for Details]
Request your own copy of this home’s Property Condition Report by clicking here.
Get instant updates to listings and real estate news, follow us on Twitter – Click Here or Updates Here
Terry Iwaniw
============================
REALTOR Associates
ReSales & Investment Realty, LLC
http://www.sellmysnjhome.com
http://www.terryiwaniw.com/
http://snjrealestate.ning.com/
Cell: 609-417-1086
Office: 856-795-3111 x263
============================
Tags: homes for sale, HUD owned homes, hud owned homes for sale, real estate for sale
Posted by
terryriw on Dec 27, 2009 in
Buying,
Real Estate If you are thinking about the home you want in the coming year, this is a good time to compile your wish list, whether you’re looking to Santa or not.
After writing your dreams and wishes, your list of must-haves comes next.
Give yourself the gift of time to create the lists. You can enjoy that time whenever a new idea comes to you, whether it’s in the middle of the day or in the middle of watching NCIS on television.
Builders of up-scale homes say a state-of-the-art kitchen, walk-in closets and whirlpool tubs rank as the three most-coveted elements Americans over age 25 want in their dream homes. The survey of builders was made by market-research firm GFK Roper.
Your own list will be a lot longer as your customize it according to how your family lives. Fortunately, most of your needs today can be met by an existing home, and many of your wishes can be fulfilled at the same time.
A dream home doesn’t have to be a palace, but with home prices at their current levels, dreamers have the opportunity to buy more than they could in earlier times.
A few things parents may want to include in their list:
* A separate laundry room.
* A mud room with a half bath attached for washing up.
* Extra storage space for toys and sports equipment.
* Large kitchen with space for family dining.
* Fenced yard to keep small kids and big dogs contained.
No home will have them all, but many will have other amenities you will like even better.
If you’re a baby boomer or beyond, that home could be your reward for a lifetime of work service to others.
Terry Iwaniw
REALTOR Associate
ReSales & Investment Realty, LLC
Off: 856-795-3111 x263
Cell: 609-417-1086
http://www.sellmysnjhome.com
http://snjrealestate.ning.com
http://www.snewjerseyhomes.com
Connect on Facebook – http://profile.to/terryiwaniw
Tags: dream home, home buying, selecting the right home
I have prospective buyers asking me if FHA mortgages are a good deal these days, or are they strictly for lower-income home buyers?
In the past, most Federal Housing Administration (FHA) loans were made to lower-income borrowers. In fact, that is why FHA was established. In the 1930s, a working person would have to save 50 percent of the value of a house before being able to get a mortgage. The FHA changed that with programs that guaranteed loans made to people with lower down payments.
FHA itself does not actually lend money or set interest rates. Instead, it guarantees loans, insuring that private lenders are protected against defaults on loans. Today the FHA has a variety of loan guarantee programs for first-time borrowers, reverse mortgages, and refinances. The percentage of FHA loans in the mortgage market is about 25 percent.
In fact, while FHA loans still require smaller down payments and often have low interest rates, not all FHA borrowers are low income. In areas where real estate is expensive, borrowers can take FHA mortgages for as much as $729,750 but the limits vary from place-to-place. I can discuss FHA limits and requirements with you if you think such a loan would be good for you.
There are a lot of reasons people look to FHA loans. Today, if you want to make a down payment of less than 10 percent, you almost certainly will have to do an FHA loan. Borrowers can get a home mortgage for as little as 3.5 percent down.
As a government-insured loan, an FHA mortgage has easier credit qualifying guidelines than most lenders. Today, nearly all lenders require a credit score of 700 or more to qualify for a conventional mortgage. FHA credit score requirements are slightly lower.
Nonetheless, there is no guarantee that an FHA mortgage is a better deal than a conventional one. As always, shop around and deal with a reputable lender.
Tags: mortgage loans, mortgages, mortgages types
Posted by
admin on Dec 27, 2009 in
Marketplace,
Real Estate If you are thinking of buying a home, you might be confused about the many issues in the news from mortgage rates to mortgage bills in Congress.
But the fundamentals of buying a home really haven’t changed and, in fact, there are new incentives on the horizon that should make home buying more attractive than ever.
There are plenty of homes on the market in every price range and if you want one of them, you need only do what generations of people have done. You just have to pay attention to these basics:
First, cultivate good credit by prudent living. Pay your bills and pay them on time. Use credit sparingly. If you do this, you’ll earn a good credit score, which is crucial to getting a good interest rate. Research shows that many consumers believe that they have to have a high income to have a high credit score, but that’s not true. In fact, income is irrelevant to your credit score. Your credit score is a rating based on how well you live up to your obligations, pay your bills and use your credit.
Second, save money for a down payment. In the current climate, most lenders will ask you to bring some cash to the table in a mortgage deal.
Third, find a house you love but can also afford. One path to financial freedom is to buy a modest house and build equity. When you decide to move up, you can sell your house and take a large chunk of the money from the sale and apply it to your new home. Your payment is lower while you live better. It’s the good, always-in-fashion way to live.
Tags: american dream, buying a home, real estate in camden county, real estate in gloucester county, real estate in new jersey, the real story
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