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
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 Apr 17, 2009 in
Buying,
Finances,
Housing,
Real Estate In the past few months we have written a lot about the different home loans available to the home buyers, specifically, FHA loans and the different benefits of this mortgage product. But we have also written about the tightening of requirements in the mortgage industry, especially with the Freddie/ Fannie Conventional loans.
We have previously highlighted another type of conventional loan that requires NO down payment, NO monthly PMI, where the seller is allowed to pay all reasonable closing cost and prepaids, and NO hit to the rate for the zero down, it is NOT a first time home buyer program and no reserves needed.
But did you know that this particular mortgage also has a unique feature that all reasonable closing cost and prepaids can be rolled into the mortgage without the seller actually having to “pay” the cost (as long as the house appraises for the increased loan amount)? Why is this a good thing? We have had buyers who have submitted offers for homes that included seller concessions for the home sellers to help with the closing costs, only to have those offers rejected. Now buyers have another option and are not at the mercy of the homes eller. It is a conventional loan that has these great options and it is government backed loan (like FHA loans) but is backed by the USDA.
The downside of this loan is that tt is area-specific and income-limited, so it is important that you work with a lender who is very knowledgeable with these loan guidelines. If you are interested to find out which areas are eligoible for USDA loans, click here.
If you need help in finding a knowledgable lender or to better understand how this loan can be of benefit to you, or just give you some assistance with your home search and loan pre-qualification steps, simply call us at 609-417-1084 or email us at info@i-teamhomes.com
.
Tags: government backed loans, mortgages, no downpayment loans, usda, usda rural loans
Posted by
admin on Mar 3, 2009 in
Buying 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.
Congress is also planning some incentives for new home buyers. It appears first-time home buyers will get a tax credit of 10 percent of the purchase price of a home up to $8,000. That means in the year you purchase a new home, your tax bill could be reduced up to $8,000. Homeowners will not qualify for the credit if they sell the home in the first year and must live in the house for at least three years, or they will be obligated to pay back the credit.
To be classified as a first-time homeowner, you must not have owned a home in three years
Tags: first time home buyers, home buyers, home buying, homes for sale in camden county, homes for sale in gloucester county
Posted by
admin on Feb 15, 2009 in
Buying 
You’ve found a house you like, but want to offer a little less than the asking price. What is the best way to do it?
How an offer is made has a lot to do with the outcome:
* Sellers are more comfortable with an offer if they know the buyer is qualified and eager to close.
* A buyer’s agent can help. When the agent presents the offer in person, the seller can ask questions that could lead to a favorable decision.
* A real estate agent essentially does the same. Though a real estate agent is working for the seller, the sale is still a primary goal.
* Always present your offer to the seller in person. Don’t fax.
* Some sellers don’t want personal contact with buyers. If you use a buyer’s agent, be sure the offer is presented in person to the listing real estate agent.
* When a real estate agent requests that offers be presented in a sealed envelope, ask the real estate agent to prepare a summary to accompany the offer. The summary should tell something about you and highlight positive aspects of your offer, such as an early closing date.
* However your offer is presented, your chances of acceptance are improved by including a copy of a preapproval letter from a mortgage company.
* When multiple offers are involved, some buyers write a letter to the seller to personalize their offer. It won’t help if you aren’t qualified or if the offer is too low.
Tags: buyers, buying a home, first time home buyers, home buying
Posted by
admin on Feb 13, 2009 in
Buying,
Finances,
legislation The $790 billion stimulus package hammered out by House and Senate conferees late yesterday increases the home buyer tax credit to $8,000, from $7,500, and drops the repayment feature for buyers who hold on to their property for at least three years.
The NATIONAL ASSOCIATION OF REALTORS ® has sought removal of the repayment requirement because it discourages buyers from taking advantage of the tax credit. The three-year minimum holding period is a safeguard against speculators’ use of the credit.
The legislation also extends the effective date of the credit to December 1 from June 30, and extends eligibility to borrowers who buy their home with the help of state or local financial assistance that comes from the proceeds of tax-exempt mortgage revenue bonds.
The credit remains open only to first-time buyers (those who haven’t owned in at least three years) and some income eligibility restrictions apply, but those are unchanged from the existing program.
Other provisions reportedly in the bill that could help housing markets and communities include:
- FHA and conforming loan limits.
Specifics have not been released but reports indicate that the 2008 limits have been reinstated for 2009 except in those communities where the 2009 limits are higher. Additional increases in individual communities may also be available at the discretion of the secretary of the U.S. Department of Housing and Urban Development.
- Foreclosure mitigation and neighborhood stabilization.
Funding for states and localities to be used for neighborhood stabilization activities for the redevelopment of abandoned and foreclosed homes are authorized. Some news reports put the funding level at $2 billion.
- Rental assistance.
Up to $1.5 billion to provide short-term rental assistance and other aid for families during the economic crisis.
- Transportation infrastructure.
Up to $29 billion for highway construction projects, $8 billion for rail projects, and $5 billion to weatherize low-income homes.
- Rural housing development.
Increased funding for the Rural Housing Service direct and guaranteed loan programs.
- Low-income housing grants.
Allow states to trade in a portion of their 2009 low-income housing tax credits for Treasury grants to finance the construction or acquisition and rehabilitation of low-income housing, including those with or without tax credit allocations
- Tax-exempt housing bonds.
Tax-exempt interest earned on specified state and local bonds issued during 2009 and 2010 will not be subject to the Alternative Minimum Tax (AMT). In addition, financial institutions will have greater capacity to purchase tax-exempt state and local bonds
- Energy efficient housing.
Grants for energy retrofits for federally assisted housing (Section 8), funding for energy efficiency and conservation block grants to states, and Increases in the residential tax credit through 2010 for certain energy efficient upgrades.
Tags: Alternative Minimum Tax, AMT, buyers, buying a home, economic stimulus, Energy efficient housing, grants, tax credit, tax credit for buyers
Posted by
admin on Feb 5, 2009 in
Announcements,
Buying,
Housing The housing industry should get a big boost from the latest addition to the stimulus bill that is working its way through the Congress. On Wednesday, Senators approved a proposal that would give home buyers a tax credit of 10% of the value of new or existing residences, up to a $15,000 limit. The current law, that was passed last year, provides for a $7,500 tax break and only for first-time homebuyers.
Sen. Johnny Isakson, (R-Georgia) said “It is time to fix housing first.” Isakson’s office said the proposal would cost the government an estimated $19 billion. In all, the stimulus is now topping an estimated $920 billion.
President Barack Obama, in an op-ed that appears in Thursday’s Washington Post, painted a dire picture if Congress fails to move quickly to pass the stimulus bill. “This recession might linger for years. Our economy will lose 5 million more jobs. Unemployment will approach double digits. Our nation will sink deeper into a crisis that, at some point, we may not be able to reverse,” Obama wrote in the op-ed titled, “The Action Americans Need.“
Tags: attracting buyers, buyer credit, congress, Housing, housing market, obama, stimulus, tax breaks, tax credit
Posted by
admin on Jan 29, 2009 in
Buying,
Editorial Renters, have you any idea of how much money you are throwing away each year?
If you only knew how much money you will MAKE just by buying a home, you’d be foolish not to buy a home through us! Did you know that in addition to the tax deductions you receive as a home owner that you can get tax money BACK from the Federal Government.
Not only is interest that you pay on your mortgage loan tax-deductible, but the US government is providing a tax CREDIT (not simply a deduction) of up to $7500 for most first time homebuyers. In short, the US Government is bending over backwards to help people become homeowners at a time when there already are real estate bargains everywhere! For a limited time, qualified first-time homebuyers may receive a tax credit up to $7,500 as part of the Housing and Economic Recovery Act of 2008.
If you plan to live in the home as your primary residence and have not owned a home during the past three years, you may qualify for the tax credit. This tax credit must be repaid over a 15-year period. Take your first step by calling us for more information and recommend the best mortgage loan advisors on our team that work with first time home buyers. You may be able to buy your first home sooner than you thought possible.
Just how much money can you gain when you own your own home? As an example, the tax deductions you’re eligible to take for mortgage interest and property taxes greatly increase the financial benefits of homeownership. Here’s how it works.
Assume
:
$9,877 = Mortgage interest paid (a loan of $150,000 for 30 years, at 7 percent, using year-five interest)
$2,700 = Property taxes (at 1.5 percent on $180,000 assessed value)
______
$12,577 = Total deduction
Then, multiply your total deduction by your tax rate.
For example, at a 28 percent tax rate: 12,577 x 0.28 = $3,521.56
$3,521.56 = Amount you have lowered your federal income tax (at 28 percent tax rate)
Plus $7,500.00 from the federal government
Equals $11,021.56 in a potential tax refund!
Linda & Terry Iwaniw
============================
REALTOR Associates
ReSales & Investment Realty, LLC
http://www.sjerseyhomes.com/
Cell: 609-417-1084
Office: 856-795-3111 x262
============================
Tags: 1st time buyers, buying a home, first time buyers, first time home buyers, home buyers, home buying, renters
Posted by
admin on Dec 23, 2008 in
Buying,
Real Estate 
The American dream can be yours and you CAN buy a home.
Owning your own home is more than just a matter of pride (but there is a lot of that), it’s also a great first step toward financial and personal security.
If you’ve never owned a home before (or if you haven’t owned one in three years), you can easily start the process of buying a home. There are many programs geared toward First Time Home Buyers.
We can help you with every step toward homeownership.
However, you might want to do some of your own research to begin the process.
1. Decide how much you can afford
The first step is to find out how much you can spend on a home. There are lots of calculators online that can help you. One great resource is ginniemae.gov. Here you can find calculators that will help you to decide whether you should buy or rent and, if you should buy, how much you can spend and how much you need to save.
For first time homeowners or people who have not owned a home in three years, there might be some public programs that will help you become of homeowner for the first time. Many states have home buying programs that help new homeowners with downpayments. We will help you determine if you qualify for a program.
2. Shop for a loan
Just as you shop for a bargain in a store, you should also shop for a good interest rate on a home loan.
Remember the higher your credit score, the lower your interest rate. Getting a high credit score is as simple as paying your bills on time, every time, for a number of months or years. You can see your credit report is once a year at annualcreditreport.com. You might have to pay extra to get your credit score, but the information can tell you a lot about what kind of home loan you qualify for. Scores of 700 or higher are considered the best.
You will have to have some sort of downpayment. The downpayment is usually 3 percent to 10 percent of the purchase price. But it is possible to make a deal without money down. We’ll discuss this with you.
3. Choose a real estate agent
We can help you find all the houses available in your price range and give you tips on how to buy and negotiate for a home. We’ll help you through all the paperwork and tell how to take each step in the process.
Remember YOU can buy a home and we can help you.
Tags: buyers, buying a home, first time buyers, first time home buyers, home buying, mortgage loans
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