| by Arley Kirby | No comments

Buying Foreclosed Homes

Before you can even consider making an offer on any foreclosed properties, you must ensure that you are working with a real estate agent that is able deal with banks and other institutions that would own such properties.

Remember that you will be purchasing the property from an institution, rather than an individual, so it is important to work with somebody who has experience in the area. If you don’t you may find that you end up having to wait a lot longer to make the purchase, even if you already have the money to pay for the property.

Financial institutions are looking to sell off their foreclosed homes, but at the same time they want to be able to ensure that the new owners of the property will be able to make the relevant payments. Being able to offer a healthy down payment is a good start, but showing that you have been able to secure a loan beforehand shows that a lender holds you in good stead, which means you have more chance of making a successful offer on a property,

Of course, all of that is advice on what you should do to identify and be prepared …

Read More
| by Arley Kirby | No comments

Economic Considerations For Buying A Home

  1. Tax deductions: Although, for many, especially, those in, so – called, high SALT states/ regions, the tax deductions, associated with home ownership, are less than they have traditionally been, there is still an, up – to $10,000 tax deduction, on one’s federal tax return, for the state and local taxes, we pay, Therefore, when we consider, whether, there are advantages, to buying, instead of renting, this must be factored in. If the net – numbers, of renting, versus, owning, are compared, and if they are close, home ownership often becomes more economically, advantageous, because of the appreciation, and equity, involved, in owning.
  2. Mortgage/ mortgage interest: Mortgage interest, up to that paid, on a $1 million mortgage, is still, tax – deductible, so, when one considers, if it makes sense, for him to purchase, this must also be considered. In addition, a wise consumer considers, whether his monthly costs, are within their personal comfort zone, and strengthens, their enjoyment, etc.
  3. Local real estate market: While there is, often, much discussion, about the overall, real estate market, every local area, is different, and certain ones, appreciate more, and/ or, depreciate, less, than other areas/ regions/ neighborhoods! One should, carefully, consider, whether, the
Read More
| by Arley Kirby | No comments

Banks Are Approving Buyers, But Not Houses

This is a new trend I’ve been seeing in my deals and hearing about from colleagues and bankers in the business.

These days, when the banks send in their evaluators, they don’t just assess value. They also report back about any cracks in foundations, or major up-keep issues. This raises red flags on the file and the loan officer will likely ask to see the building inspection report.

Inspection report can bring up more problems than expected

The state of a property tells a story. Overdue maintenance on brickwork, cracks in the foundation, a deteriorating leaking roof will all significantly lower the value of a property.

When a property is flagged and the loans officer requests the inspection report, you must oblige, even if you put in an offer that was not conditional upon an inspection.

You must go back to the vendors and explain that the bank is insisting on a report.

Of course, this usually happens near the end of your timeline to get the mortgage approval.

If the inspection wasn’t part of the initial deal, the vendors can refuse to let you do an inspection.

This happens quite often because reports often bring up more problems than …

Read More
| by Arley Kirby | No comments

Essentials When Buying Property

Location

One of the most important factors to consider when buying a home is the location. The location is as important as the price of the property. Believe it or not, the location affects how you live later on.

Imagine buying property away fro civilization, how would you suppose to find a good commute to work? Unlike buying aroperty that has good security system, you would surely live at peace and feeling safe every single day.

When buying property, first determine where the location should be that would best fit your needs.

Neighborhood

As important as location is the neighborhood. When you visit the location, try to know the status of the neighborhood and make sure they are friendly and nonviolent. It is important that you are comfortable living with your neighbors. Otherwise, it would be a regret in the end.

You can perhaps talk to the neighbors during your visit and ask them about the people living in the location. Perhaps they can give you better insights about the place and the people living nearby. They can even tell you how safe and convenient the location is.

Price

When it comes to buying aroperty, you can never go wrong …

Read More
| by Arley Kirby | No comments

Buy a Home With Bad Credit

Rent To Buy

Rent to buy is an excellent route into property ownership for many people with bad credit. The rental period will prove that you are able to handle the monthly payments for a year or more, which will make it much easier to secure a mortgage on the house when you are ready to buy.

Furthermore, every rent payment becomes equity in the property, which means that you essentially pay your deposit while living in the home. Only having to deal with the current homeowner in many cases is also an added bonus, as they can treat you like a tenant rather than a homeowner.

Research Federal Mortgage Programs

Many people actually qualify for federal assistance in securing a mortgage and may not even realise it. Speak to a qualified real estate agent and they will be able to let you know if your current situation means that you are able to take part in a federal mortgage program like the ones offered by the Veteran’s Administration or the Federal Housing Administration.

There are also a number of state-wide and local programs that also offer assistance to those who are trying to get on the property ladder despite …

Read More
| by Arley Kirby | No comments

Most Home Buyers Seek

  1. Price and costs: While most want to live, in the nicest house, they can. and proudly, show – it – off, to their friends and family, what good is buying a home, if it makes your life, more stressful, etc? Objectively, and introspectively, consider, the impact of reducing your other assets, because of the amount of your down – payment. Will this create stress? How much are the monthly carrying charges, and can you, not only afford it, but do so, within your personal comfort zone? Do you have the necessary reserves, for contingencies, including; short – term employment gaps; necessary repairs; desirable renovations and/ or alterations, etc? Don’t become, house – rich, but hurt yourself, in terms of stress, etc!
  2. Size and features: How many rooms do you need, and how does compare with what you want? What are your present needs, in terms of size and number of bedrooms, bathrooms, etc, and what do you anticipate in the short – term, and longer – term future? Are you ready, willing and able to maintain, and care for, whatever house, you purchase? Will you personally do the work, or will you hire someone else to do so, and
Read More
| by Arley Kirby | No comments

Buying an Older Home

Pros

  • Architectural details-in some of the older homes for sale you may be able to find some of the intricate woodwork that was carved out or crafted manually by carpenters as was done decades ago because there were none of the modern tools carpenters use today. This makes the architectural work irreplaceable and unique. There are no two older homes that will be similar in their style and look. Older homes are meant for those that enjoy the artisanship of that time.
  • Cost-effective-the one reason that older homes are relatively cost-effective is that you can get more square footage for a better price that you would pay for a new home with the same amount of square footage.
  • Bigger yards-when older and newer homes for sale you will most often find that the older houses have a bigger yard. This extra space can give you more room for a garden, to put in a swimming pool, and pets and children have more room to move and play. With larger yards, your neighbors are not right next to you as many new homes are.

Cons

  • Cost of refurnishing and repairs-sometimes an old home was not maintained properly by the owner so
Read More
| by Arley Kirby | No comments

Before Purchase New Home

Before you look at your first house, you should review your credit report and check it for inaccuracies. Once per year, you can get a free copy of your credit report at: annualcreditreport.com. Before you contact a bank or mortgage company, review the report and clean up any past issues and make sure there are no inaccuracies or mistakes. To qualify for a mortgage, you will need to meet the minimum credit qualification standards.

If you are a first-time buyer or have had credit issues in the past, it is a good idea to talk to your family and friends and ask them to refer a mortgage professional that they have had a good experience with when they applied for a mortgage. To apply for a mortgage, you will need at a minimum the following documentation: pay stubs, bank statements, tax returns, and other personal information. If possible, try and meet your loan officer face to face. This will give you peace of mind and reduce stress. If you are concerned your mortgage could be denied, be sure that you apply for a fully underwritten mortgage pre-approval. A pre-approval will take longer to complete than a pre-qualification, but it will …

Read More
| by Arley Kirby | No comments

New Home Buyers Beware

As you stroll up to the door of the model home in these communities you are often greeted by one of these cheerful agents who is happy to show you around the home(s) and tell you all about the features. Your first question of this Realtor should be, “Who do you represent, the buyer or the seller?” An easy answer for the agent is, “I can represent both you and the seller” – this is known as dual agency. In other words, the agent will simply fill out the paperwork for the transaction without advising either party as to what may be in his best interest.

As a buyer, you will fare much better in your transaction if you work with a Realtor who is representing ONLY you. This person is a Buyer’s Agent. Your Realtor will be negotiating for you, helping you to make important decisions with your best interest in mind, helping you to find the right home! Many people feel they are quite capable of making decisions without an agent; however, Buyer’s Agents solely represent the buyer and have a fiduciary duty to act in the buyer’s best interest throughout the transaction process. Licensed agents have specialized …

Read More
| by Arley Kirby | No comments

How to Pre-Qualify for a Home

Talk to the Decision Makers

There is nothing more frustrating than repeating yourself twice and investing a lot of time in someone who is not ultimately going to make the decision. However, assuming or implying that there is another party you should be talking to can violate fair housing laws. Simply ask if there will be anyone else involved in making the final decision. If there will be others involved then try to schedule a time to meet when all parties can be present.

Ask Some Basic Questions

Although you can verbally ask questions, you will likely get more out of a paper or online questionnaire. If they fill it out online, you know what to expect ahead of time. If they are filling it out in your office or at a property then leave them alone. If you stand there, they will keep asking questions and never get it filled in or else their answers simply won’t be thorough. A few questions to ask include:

  • When did you begin looking for a home?
  • Do you currently own a home or are you renting?
  • Is your current home already listed with another agent?
  • What lender are you pre-qualified through?
  • When
Read More