Real Estate Information

Though you may be willing to spend a certain amount, the real determination of how much house you can afford is driven by how much a lender calculates you can afford. So before you begin to search for the perfect house, it is very important to begin the home buying process by getting pre-approved. Getting pre-approved for a home mortgage loan will provide you with a preliminary statement on the size of loan for which you can qualify. Knowing this, you can then focus your home search.

In general, lenders allow your total monthly housing costs to go as high as but not more than 30 percent of your gross monthly income. The second requirement is that not more than 36 percent of your gross monthly income can be tied up in the total monthly house payment and payments on long-term debt.

Lenders use slightly different formulas for determining the "total monthly house payment.” These costs generally include the mortgage principal and interest payment, property taxes as a monthly sum, and hazard insurance as a monthly sum. These four items are referred to as PITI (principal, interest, taxes and insurance). Other costs may be included in this calculation if your down payment is less than 20 percent or if you are responsible for homeowner’s association dues. The calculations may vary from lender to lender, but will provide you with a gauge.
The Pre-approval Letter

Your friends and family may know you to be reliable, dependable and someone who pays bills on time, but all others in a real estate transaction will require you to prove it. That’s where preapproval comes in. A preapproval letter is more reliable than a pre-qualification letter. In the preapproval process, a lender will examine your finances and will make a preliminary statement on the size of the loan for which you’ll qualify.

Preapproval is an involved process. The lender will take all pertinent information regarding your finances and perform an extensive check on your current financial status. This procedure will ultimately give you the exact loan amount that you will be eligible for (depending on what type of loan you decide to select.) Being preapproved lets the seller know that you have gone through an extensive financial evaluation and there should be no unexpected obstacles to buying the home. It makes your offer much more powerful.

Preapproval gives you a very good indication of:

• How much down payment you’ll need

• Your closing costs

• Your monthly payment (including PITI: principal, interest, taxes and insurance)

• The type of loan for which you qualify and which best suits your needs; and,

• Special programs for which you may be qualified, including those for veterans, first-time buyers, teachers, etc.

• To become pre-approved you will need to provide a lender with the following:

• Your employment and income history (including recent pay stubs)

• Your monthly debts

• The amount and source of cash available for the down payment and closing costs

Pre-approval letters are not binding on the lender, they are subject to an appraisal of the home you want to purchase and are time sensitive. If your financial situation changes, interest rates rise or a pre-determined date passes, the lender will review your situation and recalculate your maximum mortgage amount accordingly. You can research lenders yourself and ask them to pre-approve you.

Your boss has just given you the career opportunity of a lifetime, but the job is in another state.

Soon you discover that moving your family to another city may be one of life’s hardest tasks. The thought of leaving behind old friends and schools for a strange town can be frightening. The biggest challenge of all, however, it to preserve the equity in your housing investment so you will be able to purchase a similar home in the new location.

Not to worry. Even in these uncertain times homeowners can sell at very satisfactory prices in a reasonable period of time. The secret? Pay attention to details, utilize marketing savvy and price the home to sell quickly.

The following tips can help you get that “sold” sign up fast.

OFFER THE RIGHT PRICE. Start with a price that is reasonable for your neighborhood and the size of your home. Comparing the price of your home with similar nearby listings is an easy way to be sure you are offering the right price. Comparing the opinions of two independent appraisers will also help you avoid over-pricing.

PAY PART OF THE CLOSING COSTS…usually 3 to 5 percent of the loan amount. This will attract those first-time buyers who are short on cash for down-payment and closing costs. Offering to turn over personal property such as washing machines and dryers, refrigerators and flower boxes can also attract buyers looking for the best deal.

ACCEPT CONTINGENCY AGREEMENTS. Make your sale contingent upon the sale of the buyer’s home. This takes away buyers’ fears of juggling two properties and mortgages at the same time.

TAKE ADVANTAGE OF THE CORPORATE RELOCATION TRADE. Be sure that your broker is connected to a relocation network – one capable of bringing in buyers from distant places. And, of course, try to get your employer to provide you with relocation assistance, too.

MAKE YOUR HOME STAND OUT. Fresh paint and flowers can go a long way in impressing buyers. Tend to such details as moving the lawn, fixing stubborn doorknobs and sliding doors, and straightening up the basement. Remember, your home’s appearance on the day it’s shown can make or break a sale.

The bottom line is that sellers should take the time to make their home as attractive as possible. Compiling helpful tips for the buyer about school districts, utility bills and directions to the nearest shopping mall can go a long way in selling your house quickly.

With a little work and an active real estate agent, chances are good that your house will sell fast in today’s buyer’s market.

In today's market everyone is asking the question - What is my home worth in today's market?  Know you can get the latest quarterly median home price for your market, and its percentage change from the previous quarter by clicking here.

When looking at the value of your home in today's market you need to look to an experienced real estate agent in giving you the true value of your home.  You can know have a Home Value Market Analysis completed and emailed to you by visiting http://www.buyandsellhomes.com

The point of Thanksgiving is to remember the things we have to be grateful for. It's our special time to give thanks... not just for the obvious, like food, but for the thousands of fortunate moments, the multitude of blessings that we receive each year.

That's not always as easy as it sounds. We tend to remember the bad things much more easily than the good. That's where this article comes in. using the tips below, you can make thankfulness an everyday habit. It's a skill that will benefit you throughout the year.

Begin by keeping a gratitude journal. Don't write down negative things; only positive ones. For example, "I'm grateful that I made it through that heavy rush hour traffic safely." "I'm grateful that I got to see a beautiful sunset." "I'm grateful that I have a class at school that I really like."

Think of all the good things that happened because something bad happened first. For example, "If that slow driver hadn't pulled in front of me, I would have gotten a speeding ticket." "If I hadn't tripped on the playground, I would never have met such a nice person." "If I hadn't experienced unemployment, I would never have acquired the skills that got me a more fulfilling job."

Don't focus on what you don't have. Focus on what you do have. For example: "I'm so fortunate to have a warm place to sleep in the winter." "I'm so fortunate to live in a safe neighborhood where I can take walks." "I'm so fortunate to be able to see the beauty around me."

Think about people you've known that have made you thankful for their existence. They can be family, friends or simply people that you've read about or seen on television. Imagine how many other people there are who might be equally as wonderful. You just haven't met them yet.

Think about people who have made life hard for you. Now think about the things you accomplished because of them. Did you finish something because they said that you couldn't? Did you get better at something because they made fun of you when you did it badly? Did their cruel actions make you vow never to treat others that way? Even the negative forces in your life can be hidden blessings, worthy of your gratitude.

Think about the animals that have given you joy: Dogs that love you with every inch of their hearts, cats that think your lap is the best place to nap in the whole world, birds whose songs uplift your spirit, squirrels whose antics put a grin on your face and so on.

Think about the places that make you smile: A favorite hangout, a wooded trail, an exciting city, a great spot from which to view the sky, a hill that you once rolled down. Give thanks for all these things.

Now pass it on. True gratitude involves action. Lend a hand. Pitch in. Make a gift. Give your time. Listen. Give back as often as you can. Even a friendly greeting can make all the difference in the world.

Create your own opportunities for gratitude. Do you know someone who never seems happy? Be ready with a smile and a kind word each time you see them. It may require patience, but eventually, they'll smile first when they see you. Your interactions with them will be much more pleasant. Guess what? You'll have a new reason to be thankful!

Let others know when they've done something that you're thankful for. For example, "I'll never forget how you stuck up for me. It meant a lot." "That email you sent really made my day." "You make shopping here a pleasure." An attitude of gratitude spreads like ripples from a tossed pebble, benefitting all it touches.

Remember that hard times make good times sweeter. Also keep in mind that obstacles and challenges not only make you stronger, but they force you to explore outside of the comfortable routine that you've settled into. Without challenges, there can be no progress. Without obstacles, there can be no achievement. Be thankful for the opportunities that they provide.

In conclusion, giving thanks is a powerful tool that can dramatically improve your life and the lives of those around you. Start by embracing gratitude's special day, then make it a habit!
   

It seems that everything and everyone are 'going green' these days-and that is a good thing! You may not have thought however that you can be environmentally conscious  when you make a move to a new home. Every year over 20 percent of the American population packs and moves each year- generating massive quantities of waste, that ultimately ends up in a landfill. It’s a huge problem but now we have options. There are multiple companies that now market services that will help you do just that.  These companies promote everything from bio-diesel to recycling packing materials.

It seems that everything and everyone are 'going green' these days-and that is a good thing! You may not have thought however that you can be environmentally conscious  when you make a move to a new home. Every year over 20 percent of the American population packs and moves each year- generating massive quantities of waste, that ultimately ends up in a landfill. It’s a huge problem but now we have options. There are multiple companies that now market services that will help you do just that.  These companies promote everything from bio-diesel to recycling packing materials. 

Bio-Diesel is one way you can be assured that the company that is helping you move is doing it with an eye on that carbon footprint.  Bio-Diesel is a renewable resource created by splitting vegetable oils into methyl esters (the chemical name for biodiesel) and glycerin (a valuable by product usually sold to be used in soaps and other products).     Companies like Green Moving promote the advantages to Bio-Diesel and use it exclusively in their trucks.

Aside from Biodiesel, how else can you green your move?  Take Part has suggestions with their Top 10 ways to move greenly. Some of their suggestions include using boxes that stores are throwing away rather than buying new ones.  Using green cleaning products when doing clean up and recycling items rather than discarding the things that aren’t going to move with you.

While boxes can be recycled; what about packing peanuts and the likes?  Wait!  Before you fill your boxes of precious fragile items with Styrofoam peanuts, check out your local Uhaul.  A number of moving companies now carry biodegradable packing supplies.  These foamy-looking puffs are made of cornstarch or other starches that start breaking down when they get good and wet!

There are other things you can do yourself to go green.  Rather than wrapping everything in bubble wrap, try newspaper and then recycle it when you get to your destination.  Use blankets and towels that you are going to be packing anyway, to protect fragile items.  This way they both get packed and still save a tree or two.  Not to mention less plastic in a landfill somewhere.  Good luck on your move and Go Green!
 

Why is it that some homes sit on the market for a year while others sell like hot cakes? Frustrated sellers will blame a bad market, while a good real estate professional will tell you that many times, a slow sale is often attributed to the listing price.

If a home is overpriced, buyers will stay away. But, if the price is competitive with similar homes in the area and “shows” better than the competition, it will have a better chance of being sold quickly.

The secret is perfecting a technique that’s as American as apple pie: comparative shopping.

Although comparing houses with different styles, square-footages and locations is challenging, real estate professionals still feel it’s one of the best methods to use when determining a home’s market value.

A responsible real estate agent will effectively evaluate a home’s worth through a process known as Comparative Market Analysis (CMA). Taking a look at assets, such as a swimming pool, bigger than normal living spaces, a fantastic view, adjacent city parks and other attractions, the agent will begin to compare your home with similar properties, called “comparables,” that have sold in the area within the last six months. Typically, it is a realistic price range that will ensure you top dollar and a reasonably quick sale.

However, factors such as the amount of time needed to sell your home can affect the agent's price recommendation dramatically.

I can determine the typical duration that listings are on the market and can explain that the marketing “norms” vary with prices and properties. Based on this criteria, we will be able to sell your house for a price that both you and the buyer will be happy with. However, if you’re under time constraints because of unexpected job changes or moving agreements you’ve made on another property, this will narrow your chances of selling the home for top dollar in the market.

Assuming you have sufficient time to market the home, here are a few small steps you and your agent can take to finding the right price for your property.

The best comparisons can be made with similar homes that have been sold within the last 45 days as opposed to the standard six months. Any longer, and other factors, such as the economy, could cloud your view of how much your home is really worth.

Another good benchmark is to review the selling prices of homes that have just been sold and are pending closes. Most MLS services provide information on deals pending that most real estate agents should be able to share with you.

A good rule of thumb before setting a price is to make 20 comparisons of comparable properties within a one-mile radius of your house. Once completed you can feel comfortable that the price you’ve picked is a good gauge of the home’s worth and won’t discourage qualified buyers.

Being open and honest about what you see as the home’s greatest strengths and biggest weaknesses will also help your agent get a better feel for how to best evaluate (or assess) and market your home. Think of your home as if you were the buyer. If your home is listed at the right price, you’re well on your way to a speedy and fruitful sale.

 

If you are ready to buy a home, but the down payment is holding you back there is a program you may be interested in.  It is called The Nehemiah Program.

The Nehemiah Charitable Model uses funds from charitable sources for downpayment assistance for persons who qualify.  You can get more information on this  program at http://www.getdownpayment.com/.  There is a tutorial on how the program works.

Nehemiah is an FHA product in that all loans must comply with FHA/HUD rules, but there are many great points such as.....

• Gift funds up to 6% of the final contract sales towards your downpayment and/or closing costs
  
• Gift funds for both first time and repeat homebuyers
  (Nehemiah charges a nominal processing fee that may be paid by the seller, homebuyer, or lender.)
• Gift funds for both new construction and resale homes
  
• No repayment of gift money
  
• No income or asset limits
  
• No geographical restrictions

If you think you can use this program to purchase a house in our current market, which is a great time to buy, then give me a call.

When it comes time to move you may find youself  in need of a temporary place to store your belongings. The good news is  you have several options, read more below to find one that will work best for your situation.

There are few things you’ll want to consider about your storage options:
• Will you need a large facility or just a small storage space?
• How long will you need storage, long or short term?
• If your items will be stored for an extended time frame, you will need to consider special needs before packing away your items. You may need temperature and moisture controlled facilities.

Different Options
Self Storage Facilities. These consist of mini-storage units where a monthly charge is incurred. Most have a variety of units in different sizes to accommodate your storage needs; if you are not sure of how big a unit you may need, use this estimator to help determine the best size you may need.

Depending on the facility, access can be granted at specific times but some do have 24 hour access. Find a self storage facility near you.

Container Storage or PODS. This option is ideal for long-term, portable storage. Pods can be stored at a storage center, and once you move to your new home, delivered at your doorstep for your convenience. This can be a time and money saving solution because you only have to pack once, you don’t have to move your items to the storage facility and then again to your final destination.

Moving Companies That Offer Storage Facilities. If you are using a moving company, check and see if they offer storage facilities as well. Many offer this service for an additional fee. This may be a convenient option to have the same company who is handling the moving, pick up, store your items and then delivery them to your final destination.

Before You Store Your Items
• It is a good idea to look into insurance for the items you will be storing. Check your homeowners or renters insurance policies to see if they will cover items kept in storage. Don’t assume the storage facility will cover your items if they are damaged or stolen.
• Make an inventory of the items you are storing and keep it in a safe, easy-to-find place. For highly valuable items, it is recommended that you take photos as well.
• Be sure the storage facility offers all that you need. A few things to consider may be location, 24 hour access, security features, climate control, whether you need mobile storage, etc.
• Before signing a contract, be sure to tour the facility so you can view the unit to make sure it is up to your standards and will accommodate your needs.

If you are a first-time home buyer did you know that you are eligble for the $7,500 tax credit enacted by legislation this past April?

This tax credit is only good for those that are first-time home buyers and thhis tax credit expires July 1, 2009. 

For more information on this opportunity, please visit http://www.federalhousingtaxcredit.com/ for more information.

Contact me today to receive the #1 Book for First Time Home Buyers.