Buying a Home
Step 10: What's Next?
Sponsored By
10 Steps to Home Ownership
You've done it. You've looked at properties, made an offer, obtained financing and gone to closing. The home is yours. Is there any more to the home buying process?
Whether you're a first-time buyer or a repeat buyer, there are several more steps you'll want to take.
Those papers you received at settlement are extremely valuable, so hold on to them! In the short-term they can help establish tax deductions for the year in which the property was purchased. In the future, such papers will be important for tax purposes when the property is sold, and in some cases, for calculating estate taxes.
Also at closing, determine the status of the utilities required by the home, items such as water, sewage, gas, electric and oil service. You want utility bills to be paid in full by owners as of closing and you also want services transferred to your name for billing. Usually such transfers can be done without turning off utilities. REALTORS® can provide contact numbers and related information.
About two weeks after closing, contact your local property records office and confirm that your deed has been officially recorded. Such records are public notices that show your interest in the property.
Moving in
It is generally understood that sellers will leave homes "broom clean" when moving out. This expression does not mean "vacuumed" or "spotless." Broom clean makes sense because it means the house is ready to be painted and cleaned.
Your home, your money
For most owners a home is the largest single asset they hold, so it makes sense to protect that asset.
Many owners make a photo or video record of the home and their possessions for insurance purposes and then keep the records in a safety deposit box. Your insurance provider can recommend what to photograph and how to secure it.
You want to maintain fire, theft and liability insurance. As the value of your property increases such coverage should also rise. Again, speak with your insurance professional for details.
Lastly, enjoy your home. Owning real estate involves contracts, loans, and taxes, but ultimately what's most important is that home ownership should be a wonderful experience. Enjoy!
Posted at 10:51AM Mar 19, 2012 by Kathy Cramer in General | Comments[0]
One of the Best Places to Live is Delaware!
One of the Best Places to Live is Delaware!
Several reasons to move to Delaware, but Best One…It’s a good value. Compared to other states, Delaware is for those who watch numbers and for those who want a quality lifestyle.
To begin, our housing prices here compare favorably with those neighboring states. According to Zillow Home Value Index, median price of DE home $191K compared to that of VA at $227K, DC at $363k, MD at $234K and PA at $143K. Clearly, Delaware has value plus the ocean.
Other compelling news, are low property taxes and a generally lower cost of living; and, as I mentioned, we have the Atlantic Ocean as one big swimming pool and the water is warm in the summer.
Another benefit for buying is location. Those who work outside the state realize that our neighboring states enjoy an easy commute. No more than 3 hours with the right wind!
Many of these advantages translate to immediate and long term saving. Don’t forget the quality of life. People enjoy living here because of the peace and quiet of the natural attractions. We have many beaches, and state parks as well as fishing, boating and sailing. We have wildlife refuges, numerous golf courses, performing arts, museums, historic sites and NASCAR raceway. We even have horse racing, casinos and outlets with no sales tax!
Posted at 01:01PM Mar 14, 2012 by Kathy Cramer in General | Comments[0]
Step 9 to Buying a Home
Step 9: Closing
Sponsored By
10 Steps to Home Ownership
Go to any local courthouse and you can find property records detailing real estate ownership in your community -- sometimes records that date back hundreds of years.
These records are important because they provide today's owners with proof that they have good, marketable and insurable title to the property they are selling. Equally important, such records enable buyers to provide proof of ownership when they sell.
The closing process, which in different parts of the country is also known as "settlement" or "escrow," is increasingly computerized and automated. In many cases, buyers and sellers don't need to attend a specific event; signed paperwork can be sent to the closing agent via overnight delivery.
In practice, closings bring together a variety of parties who are part of the "transaction" process. For example, while the history of property ownership has been checked, it's possible that the records contain errors, unrecorded claims or flaws in the review itself, thus title insurance is necessary. At closing, transfer taxes must be paid and other claims must also be settled (including closing costs, legal fees and adjustments). In most transactions, the closing agent also completes the paperwork needed to record the loan.
What to expect
Settlement is a brief process where all of the necessary paperwork needed to complete the transaction is signed. Closing is typically held in an office setting, sometimes with both buyer and seller at the same table, sometimes with each party completing their papers separately.
Whatever the case, the result is that title to the property is transferred from seller to buyer. The buyer receives the keys and the seller receives payment for the home. From the amount credited to the seller, the closing agent subtracts money to pay off the existing mortgage and other transaction costs. Deeds, loan papers, and other documents are prepared, signed and filed with local property record offices.
What you need to do
One of the best parts of settlement is that buyers and sellers need to do very little.
Before closing, buyers typically have a final opportunity to walk through the property to assure that its condition has not materially changed since the sale agreement was signed. At closing itself, all papers have been prepared by closing agents, title companies, lenders and lawyers. This paperwork reflects the sale agreement and allows all parties to the transaction to verify their interests. For instance, buyers get the title to the property, lenders have their loans recorded in the public records and state governments collect their transfer taxes.
Posted at 10:51AM Mar 07, 2012 by Kathy Cramer in General | Comments[0]
Step 8 For Buying a Home!
Step 8: Get Insurance
Sponsored By
10 Steps to Home Ownership
No one would drive a car without insurance, so it figures that no homeowner should be without insurance.
The essential idea behind various forms of real estate insurance is to protect owners in the event of catastrophe. If something goes wrong, insurance can be the bargain of a lifetime.
What kind and how much?
There are various forms of insurance associated with home ownership, including these major types:
Title insurance: Purchased with a one-time fee at closing, title insurance protects owners in the event that title to the property is found to be invalid. Coverage includes "lenders" policies, which protect buyers up to the mortgage value of the property, and "owners" coverage, which protects owners up to the purchase price. In other words, "owners" coverage protects both the mortgage amount and the value of the down payment.
Homeowners' insurance: Homeowner's insurance provides fire, theft and liability coverage. Homeowners' policies are required by lenders and often cover a surprising number of items, including in some cases such property as wedding rings, furniture and home office equipment.
Flood insurance: Generally required in high-risk flood-prone areas, this insurance is issued by the federal government and provides as much as $250,000 in coverage for a single-family home plus $100,000 for contents. Local REALTORS® can explain which locations require such coverage.
Home warranties: With new homes, buyers want assurance that if something goes wrong after completion the builder will be there to make repairs. But what if the builder refuses to do the work or goes out of business?
Home warranties bought from third parties by home builders are generally designed to provide several forms of protection: workmanship for the first year, mechanical problems such as plumbing and wiring for the first two years, and structural defects for up to 10 years.
Home warranties for existing homes are typically one-year service agreements purchased by sellers. In the event of a covered defect or breakdown, the warranty firm will step in and make the repair or cover its cost.
Insurance policies and warranties have limitations and individual programs have different levels of coverage, deductibles and costs. For details, speak with REALTORS®, insurance brokers and home builders.
Where to look.
REALTORS® often provide home insurance and such policies are also available from insurance brokers.
How do you get insurance?
The time to obtain insurance and warranty coverage is at closing, so speak with a REALTOR® or insurance broker prior to closing. Be sure to ask about limitations, costs, deductibles and "endorsements" (additional forms of coverage that may be available)
Posted at 11:31AM Feb 29, 2012 by Kathy Cramer in General | Comments[0]
Did you Know?
Did you know?
According to leaders in digital measurement, Coldwell Banker websites have the highest number of unique visitors among all National Real Estate Brands for 2011.
17.5 million Visitors
28% higher than closest competitor
List your Home with Kathy Cramer at Coldwell Banker.
Source: Nielson
Posted at 10:15AM Feb 27, 2012 by Kathy Cramer in General | Comments[0]
Real Estate's Prestigious 203K Specialist Designation!
Real Estate’s Prestigious 203k Specialist™ Designation
Coldwell Banker is proud to announce that Kathy Cramer has comple
“The FHA 203k Renovation Loan offers tremendous opportunities for many Americans to enjoy great prices on homes today,” explains
REbuildUSA was established with the mission of creating more awareness of the opportunities offered by the FHA 203k program, while at the same time, simplifying the process for all involved. As REbuildUSA’s home improvement partner, Lowe’s assists in identifying the scope of work and relative costs and then coordinates the actual renovation activities through its nationwide network of licensed installers.
“My 203k Specialist™ designation training positions me to provide professional guidance to those who would like to locate a great home in a great neighborhood to be renovated to meet their needs. These are the homes offered at the most competitive prices. Additionally, as a member of REbuildUSA, I can help my buyers more easily navigate the process of planning, securing loan approval and completing the home improvements.”
203k Specialists are also trained to bring a strong competitive advantage to home sellers by more effectively
“I’m excited to have more of our associates earning this designation and supporting the mission of
REbuildUSA,” explains Coldwell Banker Residential Brokerage of Bethany Beach. “Knowledge is power, and I believe this program really sets our people apart when it comes to helping home buyers and sellers make the most of the excellent opportunities in today’s
Coldwell Banker Residential Brokerage
39682 Sunrise Court
Bethany Beach, DE 19930
www.kathycramer.com
REbuildUSA is based in
Posted at 11:07AM Feb 16, 2012 by Kathy Cramer in General | Comments[0]
Law Tips for Anyone!
Law Tips for Anyone!
Lately, my real estate business has been handling more problems. To keep the stress to a minimum; I decided to take a course offered by Nancy W. Law of Ward and Taylor to find some answers. The course was held at Beacon Hotel in Lewes on
Here is a synopsis:
In dealing with estate sales, know that there is an 8 month claim period and that escrow money can be held until that time. (Sellers may not get their funds right away.)
Heirs are affected by judgments against siblings. (Spend thrift family member.)
Make sure you “direct” your power of attorney if you want them to be able to sell property. (If word “direct” is not used, you cannot sell property.)
Keep original copy of power of attorney. (Anything can happen.)
On a personal note, my request to my parents has always been to take care of legal items when they have there wits about them. (There are four children. I am the Executrix for both.) I have encouraged living wills, wills, power of attorneys and pre-paid funerals. After all, I still want to be friends with my family!
At a time when folks are having trials such as short sales, bankruptcy, and foreclosures it is important to seek legal help and know how it will affect you.
Contact www.wardtaylor.com for more legal advice.
Posted at 11:30AM Feb 13, 2012 by Kathy Cramer in General | Comments[0]
Dream Homes Do Come True!
“Dream homes do come true!”
Has your dream of owning a home become just that – a dream? As a RE-BuildUSA 203k Specialist, I can make your dream a reality.
With a small down payment and less than perfect credit, I’ll help you use the power of the FHA 203k Loan to buy a great home in a great neighborhood at a great price – and renovate it to suit your tastes and lifestyle.
Let me help you make your home ownership dreams come true.
As your 203k Specialist, REbuildUSA and Lowe’s are dedicated to helping more Americans become homeowners, and at the same time, preserving and improving our communities. Through the FHA 203k Renovation Loan program we’ll help you finance the purchase of your home and the cost of improvements in one mortgage.
As your 203k Specialist, working together with REbuildUSA and Lowe’s, can make it much easier for you to buy a great home in a great neighborhood at a great price – and renovate it to meet your needs using the power of the FHA 203k loan program.
To get started, give me a call. We’ll determine your buying power and I’ll help you find the best house to become your Dream Home.
REbuildUSA is dedicated to helping more Americans achieve the dream of homeownership, as we preserve and improve our communities. Your REbuildUSA 203k Specialist will help you finance the purchase of your home and the renovation in one FHA 203k mortgage with as little as 3.5% down – even with less than perfect credit.
Why REbuildUSA?
Now more than ever, there are large numbers of foreclosed properties that need repair and renovation. There are also many wonderful older homes in well-established neighborhoods offered at great prices to reflect their need for updating and repair. REbuildUSA and its partners deliver the support, expertise and systems to allow you to more easily use the power of the FHA 203k to bring your home ownership dream to life.
Your REbuildUSA 203k Specialist™ is trained to provide the expertise and support to help you find a great home at a great price that can be improved through the use of the FHA 203k program and enjoy these benefits:
· Save Time & Money – Use one loan to buy and renovate a great home to meet your needs.
· Get More Home for Your Money – Take advantage of the excellent prices for homes that need repair and remodeling.
· Low Down Payment – Enjoy the benefits of homeownership with as little as 3.5% down.
· Easier Qualification – Less strict FHA qualification requirements benefit those with less than perfect credit.
· Make the Most of Your Investment – rather than paying a premium for changes made by previous owners, invest in improvements that suit your personal tastes and lifestyle.
· Earn Additional Equity – Professional installers do the work, and you can earn “sweat equity” in the process.
· Greater Financial Stability – Rather than experiencing a strain on your budget for major repairs later, you can pay for these improvements over time at a more affordable rate.
· Live in a More Desirable Location – There are many great homes in wonderful established neighborhoods that offer perfect FHA 203k opportunities.
· Invest in Your Future – You can use an FHA 203k loan to purchase a 1 to 4 unit property allowing you to renovate a home that also brings you rental income as an excellent long-term investment.
It's Easy to Get Started
Call Kathy Cramer today!
She is your REbuildUSA 203k Specialist and will:
· Help you determine your buying power and get the process started.
· Help you locate the best home to be renovated for your needs.
· Using the REbuildUSA project portal, schedule your home inspection and introduce you to your personal Lowe’s renovation consultant
· Assist you in packaging your renovation bids and financial documents.
· Help you finalize the purchase to begin renovation of your new home
· Enjoy the support of your RebuildUSA 203k Specialist at NO additional cost to you!
Posted at 11:35AM Feb 10, 2012 by Kathy Cramer in General | Comments[0]
What you need to get a loan!
Underwriting and Processing Loans - written by Paul R. Soule, Senior Financial Representative of Coldwell Banker Mortgage.
Income: a) Application and pre-approval. b) phone app-non self employed vs self employed - 1 non self employed - w-2 employees. Salary, weekly, monthly, bi monthly, etc. Bonus income and overtime 2 years history and probability of continuance. 2) Commissioned employee's we will need tax returns and will use 2 year history as well as ytd-unreimbused expense on 1040's will be deducted. 3) Self employed - 2 years of tax returns are needed for both personal and business, all schedules, signed and dated. and 4) Tax returns are then analyzed, expenses and unreimbursed business expenses are deducted from totals, typically a 24 month average is used. A YTD profit and loss statement will be needed after June.
Assets: Bank statements, investment accounts, CD's, HELOC proceeds 1) 1-2 months bank statements, all pages needed. Same with CD. 2) 1-2 months investment statements. If liqidating stocks, mutual funds, bonds IRA, 401K we must see proof you have them, proof of liquidation and proof it has been deposited into a liquid bank account. We will ask to see 30 days continuous. 3) HELOC proceeds. Same as above except we will need to see terms and conditions of the loan so new payment can be calculated. and 4) Business accounts - cash flow analysis required to make sure these funds will not adversely affect the business.
Credit: Credit report. 1) Median credit score is used. 2) All inquiries in last 90 days will need to be addressed. and 3) Currently no new credit report necessary before closing.
Appraisal. We do not choose appraiser, realtor cannot request specific. 1) usually returned in first week. 2) Similar comps only, recent sales, foreclosures and short sales are the market. 3) appraisal contingencies are encouraged.
Posted at 12:59PM Feb 01, 2012 by Kathy Cramer in General | Comments[0]
Reverse Mortgages!
Some Straight Talk about Reverse Mortgages
A few of my clients have asked about reverse mortgages. I wanted to better understand them so I could give them advice. I personally don’t like them. I hate to think that trusted celebrity pitchmen like Henry Winkler, Robert Wagner and my personal favorite, James Garner are selling or telling older homeowners about the benefits of a reverse mortgage. I am going to tell you the qualifications. Key questions to ask and then offer an alternative to reverse mortgages.
What really comes to mind is that if it sounds too good to be true…it usually is. And those who have all the gold make all the rules. Ouch.
A Reverse Mortgage can provide cash to homeowners who do not want to move but would like to tap the equity in their home by allowing seniors to borrow against the equity. With this mortgage, you typically don’t pay back the loan for as long as you live in the home. Instead, the loan must be repaid in full when the last living borrower dies, sells the home, or moves out of the home for 12 months or more. Repaying the loan in full includes the amount of the original loan plus all interest and any other fees and charges. Most borrowers (or their heirs) repay a reverse mortgage by selling the home.
The qualifications are simple. Homeowners must own their home and be at least 62 years old. The home must be the permanent residence (occupied at least half the year). The programs typically cannot be used by owners of co-ops or mobile homes. And finally, there must be no outstanding debt secured by the home. Easy, right?
Of course, who wouldn’t want cash from someone and not have to repay it? Free is good! But my friends, there are risks. First, the loan amount increases over time. Because you do not pay the lender back over time, the amount you owe increases every month. The younger you are when you take out a reverse mortgage, the more time there will be for the compound interest to grow and the more you will owe. (You remember your teacher asking you the question, “Would you rather have a penny each day for 30 days or have it compounded over 30 days?”) Second, there is less cushion for emergencies. By taking out a reverse mortgage now, you will have less home equity later when you may need it more, for example, to pay future emergencies, health care needs or everyday living expenses. You may need your home equity to pay for future home repairs or move to assisted living. If you are not facing a financial emergency now, postpone as long as you can. And lastly, the costs are more than other loan options. Reverse Mortgages are indeed more expensive than other home loans. They will have tax consequences and may affect your eligibility for assistance from some federal and state programs.
I mentioned cost because it can be elusive. When it is rolled over as in the 100% loans, you tend not to see the costs but they are there and are added to your loan balance. There will be closing cost, reverse mortgage insurance, (charged in two parts, once at closing and each month as a percentage of your outstanding loan balance), interest, and finally, the servicing fee. Oh, the servicing fee and interest is charged each and every month.
I forgot to mention, you must pay your own taxes, homeowners insurance and keep the home is good repair. No problem, right?
It is still your home! And yes, you can lose it! You can lose it if you don’t pay the property taxes. If that happens, the lender can also demand that you repay the loan in full. Remember that statement about the gold? You may have to sell your home to repay the loan. Or, the lender could take your home through foreclosure. Also, if you don’t live in your home for 12 straight months (Maybe you’re in a hospital or nursing home?), that lender could demand that you repay the loan in full and you may have to sell your home to repay the loan.
Are the lending institutions friends or foe? You must figure that out on your own. I can tell you from previous articles that FBI said, Mortgage Fraud Remains Rampant, Met-Life Closes Mortgage-Origination Business and Wells Fargo Stop Reverse Mortgage Loans are all headlines since June of 2011. Perhaps we need to read between the lines.
I did promise to give you some alternatives to a reverse mortgage. No matter how thoroughly you plan for retirement, life can cause expenses to spiral out of control. We have all had it happened these past years. I am no different. I have lost money in the stock
As always, before you sign on the dotted line ask questions. Get good advice from trusted friends. Ask an attorney. It’s your home.
As I write this letter, I, too, am wondering about the future of my family and our country. We have been through a couple of wars, recessions, earthquakes and bombings. I humbly ask that you heed my advice. Keep your funds local. Support your neighbors and friends. Don’t be afraid to ask me for advice.
Kind Regards,
Posted at 11:54AM Jan 16, 2012 by Kathy Cramer in General | Comments[0]
6th Step to Buying a Home
Step 6: Get Funding
Sponsored By
10 Steps to Home Ownership
Often the cost of real estate financing is routinely greater than the original purchase price of a home (after including interest and closing costs). Because financing is so important, buyers should have as much information as possible regarding mortgage options and costs.
Realtor.com® provides consumers with extensive mortgage information as well as a variety of loan calculators. Local REALTORS® can provide mortgage information, discuss financing options and recommend loan sources. In addition, some REALTORS® also originate loans.
What kind of loan?
There are thousands of loans available out there from a variety of lenders, but in general, the mortgage you choose will likely be determined by at least several key factors:
- How much down? Loans with 5 percent down or less are available -- in fact, loans from major lenders with no money down have appeared in recent years.
- If you place less than 20 percent down, lenders will want the mortgage guaranteed by an outside third party such as the Veterans Administration (VA), the Federal Housing Administration (FHA) or a private mortgage insurer (PMI, or private mortgage insurance, is required by lender to protect against any mortgage defaults). Millions of VA, FHA and PMI loans are generated each year.
- How's your credit? The best rates and terms are only available to those with solid credit. To get the best loans, make a point of paying credit cards, installment payments, rent and mortgage bills in full and on time.
- Are you a first-time buyer? It might seem that "first-time buyer" means someone who has never owned property before, but under most state programs, the term refers to those who have not owned property within the past three years. State-backed first-timer programs often feature smaller downpayments and below-market interest rates. For details, speak with your local REALTOR®.
How do you get a loan?
To obtain a loan you must complete a written loan application and provide supporting documentation. Specific documents include recent pay stubs, rental checks and tax returns for the past two or three years if you are self-employed. During the prequalification procedure, the loan officer will describe the type of paperwork required.
Where do you get a loan?
Mortgage financing can be obtained from mortgage bankers, mortgage brokers, savings and loan associations, mutual savings banks, commercial banks, credit unions, and insurance companies. A growing number of REALTORS
Posted at 11:01AM Jan 11, 2012 by Kathy Cramer in General | Comments[0]
Hate to Miss Out on a Sale?
Do you hate to miss out on a sale? Does it drive you crazy when your friend bought something for ½ of what you paid? Do you think people who always get the good sales are smarter or luckier than you? Let me tell you, they are neither. They are hard workers. If you are thinking of buying at a foreclosure auction, you better do your homework.
Buying your home at a foreclosure auction sounds easy. I have been to many auctions. I have bought items at auction. I still find them intimidating. Truly, bargains can be found. The process is quick. Better be ready for the consequences. We have all heard of someone getting a deal! It reminds me of gamblers. They are always telling you how much they won. Not much is said about their losses.
To find a foreclosure, look in the local newspaper. By law, they must be advertised. The ads will tell you the detailed legal description, the certified dollar deposit needed to procure the property. It will not tell you the condition or the size of the home. And, the home will be sold AS IS. No home, well, septic, radon, lead-base paint or seller’s disclosure available to review. Be brave!
The bank doesn’t own the house yet, so they have no way of getting you in to see the house. The homeowners will be less than friendly as they know that they are losing their home. It’s a touchy subject with everyone. Even the neighbors are angry.
If you are not prepared to pay cash, be prepared to be pre-qualified before you bid on the subject home. Once you are the successful bidder, better be ready to settle in 30 days or less by law. There are big consequences if you do not settle on time. (Better have an attorney.)
This is a full time job. Be prepared to work over 50 hours to determine the value of each home you are interested in pursuing. Be prepared to spend money before you purchase. I would highly recommend you have the title searched by an attorney ahead of time in case of other liens or mortgages. (We wouldn’t want any surprises!) Once you are the successful bidder of the property, it is then recorded and you are the official owner. Can you see how easy it is to buy a foreclosure? Would you still say that they are lucky?
Call me if you are interested in bank owned properties. They are the homes that no one successfully bid on at the auctions. The bank now owns them. You can get in to them but most are sold with no disclosure and AS IS, too.
Written by: Kathy Cramer
Happy Holidays and a Happy Healthy New Year to you and yours!
Posted at 11:03AM Dec 14, 2011 by Kathy Cramer in General | Comments[0]
Real Estate is Having a Sale!
Sales activity remained close to the same as the End of the Summer report. Over the past 90 days, Ocean View had 22 single family homes sold between $108,900-$535,000 and 6 condos/townhomes sold between $227,000-$335,000. Not a noticeable difference, except the single family prices has dropped 8%. The cause of this difference is realistic sellers with savvy buyers. Even with slightly more transactions this 3rd quarter, single family total sales are less due to average sales price going down.
By looking at entire Sussex County Market, average sales price of single family homes have dropped 22% and condos/townhomes have dropped 12%. So Ocean View is doing well in comparison. Whether viewed as good or bad news, the market is self adjusting. Bring on the winter sales! Interest rates are low, prices are at great value to consumers and construction costs are down.
Written by
Numbers from SCAOR MLS
Posted at 11:44AM Dec 05, 2011 by Kathy Cramer in Real Estate | Comments[0]
Step 4 of 10 for Owning a Home
Step 4: Look at Homes
Sponsored By
10 Steps to Home Ownership
Millions of new and existing homes are sold each year. There's no shortage of housing options, but with so many choices the challenge becomes finding the property which best meets your needs.
The housing market is complicated because the stock of homes for sale is always in flux. If it were possible to have a complete list of every home for sale at this very moment in a given community, such a list would become obsolete within seconds as new homes become available and properties now for sale are put under contract.
In effect, buyers are looking at a moving target in a marketplace that is never static. Because of this, it is important to know as much as possible about the choices in preferred markets, and the way to do that is by working closely with a local REALTOR® who has a good lay of the land.
What are you looking for?
A home is more than just a collection of bedrooms and bathrooms. Several properties -- each with four bedrooms, three baths, and the same price -- may well represent radically different designs, commuting distances, lot sizes, tax costs, interior dimensions, and exterior finishes.
Each of us is different and so it's important to list the features and benefits you want in a home. Consider such things as pricing, location, size, amenities (extras such as a pool or extra-large kitchen) and design (one floor or two, colonial or modern, etc.).
Next, it's important to consider your priorities. If you can't get a home at your price with all the features you want, then what features are most important? For instance, would you trade fewer bedrooms for a larger kitchen? A longer commute for a bigger lot and lower cost?
Lastly, consider your needs in several years. If you'll need a larger home, maybe now is the time to buy a bigger house rather than moving or expanding in the future. If you expect your income to increase, perhaps you should consider a more expensive home financed with a loan program where monthly payments increase in the future.
Where should you look?
All neighborhoods and communities have a special nature that gives them identity and value. One community may be well known for historic homes while another offers both suburban living as well as easy access to downtown office areas.
REALTOR.com® offers millions of homes online. By any standard, it's the largest source for property information, online or off. You can look at homes to contact listing brokers, and you can also search Realtor.com® to find brokers who offer buyer representation services.
How do you find a house?
Some buyers like to search REALTOR.com® by looking at listings on the basis of location or price; others prefer to have local REALTORS® suggest properties; and many buyers prefer both approaches.
Posted at 11:39AM Nov 14, 2011 by Kathy Cramer in General | Comments[0]
Step 3 to Buying Home!
Step 3: Get Loan Pre approval
Sponsored By
10 Steps to Home Ownership
Few people can buy a home for cash. According to the National Association of REALTORS® (NAR), nearly nine out of 10 buyers finance their purchase, which means that virtually all buyers -- especially first-time purchasers -- required a loan.
The real issue with real estate financing is not getting a loan (virtually anyone willing to pay lofty interest rates can find a mortgage). Instead, the idea is to get the loan that's right for you -- the mortgage with the lowest cost and best terms.
REALTORS® routinely suggest that consumers start the mortgage process well before bidding on a home. Many lenders (the sources of money) and programs, for example, are available right here in the finance section of Realtor.com as well as through recommendations from local REALTORS®. By meeting with lenders -- either online or face to face -- and looking at loan options, you will find which programs best meet your needs and how much you can afford.
REALTORS® also recommend pre approvals for another reason: Purchase forms often require buyers to apply for financing within a given time period, in many cases, seven to 10 days. By meeting with loan officers in advance and identifying mortgage programs, it won't be necessary to quickly find a lender, check credit, and rush into a financing decision that may not be the best option.
What is it?
"Pre-approval" means you have met with a loan officer, your credit files have been reviewed and the loan officer believes you can readily qualify for a given loan amount with one or more specific mortgage programs. Based on this information, the lender will provide a pre approval letter, which shows your borrowing power. You can visit as many lenders as you like and get several pre-approvals, but keep in mind that each one carries with it a new credit check, which will show up on future credit reports.
Although not a final loan commitment, the pre approval letter can be shown to listing brokers when bidding on a home. It demonstrates your financial strength and shows that you have the ability to go through with a purchase. This information is important to owners since they do not want to accept an offer that is likely to fail because financing cannot be obtained.
How do you get pre-approval?
Real estate financing is available from numerous sources, including lenders here in the finance section of Realtor.com, mortgage companies that have worked with local REALTORS® and in some cases, individual REALTORS® themselves. Based on his or her experience, the REALTOR® may suggest one or more lenders with a history of offering competitive programs and delivering promised rates and terms.
The loan officer will carefully review your financial situation, including your credit report and other information. The lender will then suggest programs which most-closely meet your needs. For instance, a first-time buyer may qualify for state-backed mortgage programs with little money down and low interest rates, while a repeat purchaser (someone who has bought a home before) with more equity (money invested in the home) might want to get a 15-year loan and the lower overall interest costs it represents. Typically, first-time buyers opt for the traditional 30-year loan, with either a floating interest rate or a fixed rate of interest over the life of the loan.
Posted at 10:36AM Oct 12, 2011 by Kathy Cramer in Real Estate | Comments[0]
