Showing posts from 2007

More than Money: Considerations for Rent vs Buy

While being a homeowner is the quintessential American dream, finding the right time to buy can be a challenge. Owning a home is likely the largest investment a person makes in their lifetime. Performing a "Rent vs Buy" analysis looks at not only the financial factors involved but the overall value of homeownership versus renting. With so many factors going into a home purchase: finances, lifestyle, employment, and personal goals, it's critical to run the necessary due diligence. Every potential homeowner should run a buying versus renting analysis to determine if the time to buy is now, or if renting is a more prudent decision. Here are the factors to consider when running a buy versus rent analysis: Can You Afford It? A Cost Comparison This question is a bit more complex than it might seem. Often, potential buyers stack the mortgage payment alongside the monthly rent and consider the comparison complete. But buyer beware: there are many overlooked costs associa

What Do We Do Now?

Last month’s article wasn’t meant to frighten anyone. It was simply my way of letting you know what the heck is going on in the mortgage industry and what got the market in the situation we’re in these days. Let me set the tone for this article by mentioning a few things from last month’s: “The market is correcting itself.” “It’s just in a slump.” “Guidelines are changing.” “The industry will always find ways to make home-buying affordable.” Many of you probably ask how can there be options. I personally think things will get back to normal sooner than most think because my idea of normal goes back much farther than anyone who has been in the housing market within the past 5 years as a homeowner, realtor, investor or mortgage loan officer. When I got into this business in 1982, 30 year fixed rate mortgage interest rates commonly   were  in the double digits (something we won’t see). You had to put 10–20 percent down, and pulling equity out of your home was   taboo what we see

How to Buy HUD Homes

HUD sells properties at reduced prices that you might want to buy! What is a "HUD Home"? When someone with a HUD-insured mortgage can't meet the payments, the lender forecloses on the home; HUD pays the lender what is owed, and HUD takes ownership of the home। Then sell it at market value as quickly as possible Frequently Asked Questions About HUD Homes Who can buy a HUD home? Answer: Anyone! If you have the cash or can qualify for a mortgage, you can purchase a HUD home. Are HUD Homes meant for people with low incomes? Answer: HUD homes range in price, but most are affordable for low-and moderate-income Americans. Is it true I can get a HUD Home for a dollar?  Answer: No. HUD sells homes at market value - that means that the price is set based on the price of similar homes sold in the area. If the HUD Home needs repairs, will HUD make them? Answer: HUD Homes are sold "as-is," without warranty. That means that HUD will not pay to correct any


In an instance where the real estate transaction is a cash deal (cash closing)। The transaction can be consummated by executing a handful of documents such as a Settlement Statement, Seller’s and Purchaser’s Affidavits, and Transfer Tax Form। However: a transaction which the buyer takes out a mortgage can require execution of many more documents. These documents will be prepared by the closing attorney’s office and Lender. The documents furnished by the Lender will include Federal, State, and a host of others ranging forms including various affidavits to taxes. The following is a list of typical documents found in a loan package at the closing. Keep in mind that that this list is not conclusive. Each loan is unique. So, documents may vary somewhat according to the type of loan a buyer is getting. Pertain to the buyer(s) HUD-1 Settlement Statement:  Developed by the U.S. Department of Housing and Urban Development, this document itemizes the services provided, fees, and c

The Path to Homeownership

When asked what their top ten greatest achievements are, many people say owning their own home is number one. Homeownership represents the American dream to many. It signifies a leave of success, a level of financial security, and independence. For those starting out, however, the path to homeownership can seem like a long journey. The Sale price of their desired home combined with interest rates, taxes, and homeowner’s insurance can make it seem like a dream that may never be achieved. The key to making homeownership a reality is to deal with the numbers at hand. Start with analyzing your finances. This will help you determine how much home you can afford or how much you need to save for the home. Examine your income and all your monthly expenses. Check out your credit score and make initial inquiries into obtaining a mortgage. However: be careful too many repeated requests for your credit score and duplicate loan requests can negatively impact your appeal to creditors ov

Guide to home buying

Buying a home? Step 1: Defining What You WantStart by creating a prioritized list of features you want in your next home and the reasons why. Use it as your search guide, but remember that depending on your funding, you will probably need to make some compromises. In addition, talk to us about where you want to live. Location is a huge part of any move. Your real estate agents are trained to help our clients narrow down their choices by sharing market trends and local information like neighborhood statistics and community links. Step 2: Figuring Out What You Can AffordNow that you know what you want, it's time to see what you can afford. You can start by crunching the numbers yourself using our selection of calculators. When you're ready to move to the next step, you can get pre-approved for a mortgage. This process can often be performed in under an hour and it accomplishes two important goals. First, it will tell you how much house you can afford and what your monthly