tag:blogger.com,1999:blog-28423259165607591842024-02-21T00:42:31.802-08:00The Property SourceAndrea Bolderhttp://www.blogger.com/profile/03456015475456641883noreply@blogger.comBlogger24125tag:blogger.com,1999:blog-2842325916560759184.post-52307552935337463012009-08-02T13:44:00.000-07:002009-08-02T15:03:03.702-07:00Buyers Shouldn't Wait on Falling Prices<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjHU81aYImG2Ro7W63nwncTqSPQSQTBNeLo8JNIgeAHyMzF598SBlECOc5IUrzzWD4yovFvBA1l7CdPwYDNEH-jpbIjPYeFNG1hXd3kRhWsPguSsLoQQq6peMsLAXgipQYY4Bz45Ilg4mLN/s1600-h/Spanish_Revival_on_Ocean_boulevard_Long_Beach.JPG"><img style="float:right; margin:0 0 10px 10px;cursor:pointer; cursor:hand;width: 320px; height: 276px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjHU81aYImG2Ro7W63nwncTqSPQSQTBNeLo8JNIgeAHyMzF598SBlECOc5IUrzzWD4yovFvBA1l7CdPwYDNEH-jpbIjPYeFNG1hXd3kRhWsPguSsLoQQq6peMsLAXgipQYY4Bz45Ilg4mLN/s320/Spanish_Revival_on_Ocean_boulevard_Long_Beach.JPG" border="0" alt="" id="BLOGGER_PHOTO_ID_5365490332301743426" /></a><br />Fear of overpaying for property is common in <span class="blsp-spelling-corrected" id="SPELLING_ERROR_0">today's</span> economic environment, especially in places like California where prices continue to be unstable.<div><br /></div><div>If you find yourself on the fence, afraid to pull the trigger, or just down-right scared about jumping into <span class="blsp-spelling-corrected" id="SPELLING_ERROR_1">today's</span> real estate market, because you're concerned you'll pay too much, here are some factors to consider:</div><div><br /></div><div><span class="Apple-tab-span" style="white-space:pre"> </span>Waiting for the right time can be expensive. Some buyers would have more equity today, <span class="Apple-tab-span" style="white-space:pre"> </span>despite falling prices, if they had bought when they were first considering it, instead of <span class="Apple-tab-span" style="white-space:pre"> </span>continuing to pay rent.</div><div><br /></div><div><span class="Apple-tab-span" style="white-space:pre"> </span>Financing is fickle. Some people who were highly qualified last year are unable to find <span class="Apple-tab-span" style="white-space:pre"> </span>financing this year because the credit market has tightened or their personal financial <span class="Apple-tab-span" style="white-space:pre"> </span>situation now makes them an undesirable borrower.</div><div><br /></div><div><span class="Apple-tab-span" style="white-space:pre"> </span>Interest rates are headed up. If prices decline by another 10 percent, but interest rates <span class="Apple-tab-span" style="white-space:pre"> </span>increase by 1 percentage point, the monthly payment will be the same.</div><div><br /></div><div>Don't be the last person on the bus. Educate yourself about your buying power and what options are available to you. With prices at an all time low, you don't want to find yourself chasing the market because you weren't prepared to play the game!</div><div><br /></div><div><b><span class="Apple-style-span" style="color:#FF9900;">For a free Home Buyer's Information Packet, feel free to contact me anytime. Email all requests to thepropertysource@gmail.com. </span></b></div>Andrea Bolderhttp://www.blogger.com/profile/03456015475456641883noreply@blogger.com2tag:blogger.com,1999:blog-2842325916560759184.post-17955502495130351472009-06-26T10:44:00.001-07:002009-06-26T10:44:55.764-07:00Today's News -Home Buyer Tax Credit Could Expand<span class="Apple-style-span" style="font-family: Times; font-size: medium; "><span class="article_title" style="font-family: arial, helvetica, sans-serif; font-size: 16.5px; line-height: 40px; font-weight: bold; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; ">Home Buyer Tax Credit Could Expand</span><br /><span style="font-family:Arial;font-size:85%;">A first-time home buyer tax credit of up to $8,000 has helped to move housing inventory during an otherwise sluggish real estate cycle. Now both legislators and the business community are hoping to build on the incentive's success by expanding it. </span><br /><br /><span style="font-family:Arial;font-size:85%;">A number of bills have been introduced in the House and the Senate that lobby for an expansion of the measure. Among the proposed changes: </span><br /><ul><li type="disc"><span style="font-family:Arial;font-size:85%;">Setting a new cap of $15,000.</span></li></ul><ul><li type="disc"><span style="font-family:Arial;font-size:85%;">Extending the tax break into mid-2010.</span></li></ul><ul><li type="disc"><span style="font-family:Arial;font-size:85%;">Making the benefit available to all home buyers, not just first-timers.</span></li></ul><ul><li type="disc"><span style="font-family:Arial;font-size:85%;">Offering a separate tax credit to $3,000 for borrowers who refinance.</span></li></ul><br /><i><span style="font-family:Arial;font-size:85%;">USA Today, Stephanie Armour </span></i><i><span style="font-family:Arial;font-size:85%;">(06/22/09)</span></i></span>Andrea Bolderhttp://www.blogger.com/profile/03456015475456641883noreply@blogger.com2tag:blogger.com,1999:blog-2842325916560759184.post-65269720443774816332009-06-22T11:18:00.000-07:002009-06-22T12:06:03.931-07:00Be Patient, Make a ProfitWe've all watched the late night infomercials and the reality shows about flipping property to make a quick buck. Some of us have even attended seminars and read the books on getting rich by flipping houses.<div>For ages, investment property has been looked at as the ticket to long-term growth and financial independence. But does investing in income property still make sense in <span class="blsp-spelling-corrected" id="SPELLING_ERROR_0">today's</span> market?</div><div>I would say yep, absolutely. Income property can be looked at like a bond that pays you interest. As long as the property is pulling in enough rents to cover mortgage, taxes, insurance, repairs and other operating expenses, and bringing a decent return on investment, you are good to go no matter how much the property fluctuates. As long as your goal is to hold the property for the long term, you won't get caught up in the risky business of flipping, hoping you'll make a profit, such as those speculators who got burned when the market went from hot to extra frosty in a matter of months.</div><div>Ask yourself this question...are you investing in real estate to create long-term wealth or make a short-term profit? You can not and should not treat real estate like a game you play with the stock-market. </div><div>The key to successfully making money in real estate is to do a thorough analysis of the property expenses and cash flow to make sure you are purchasing at the right price. You must also consider how much up-front cash (down-payment, closing cost, repairs) you can afford to put in to the property. Location is also paramount, as well as the property type. First-time investors tend to make the mistake of purchasing a single family residence or condo, in the hopes they can rent it out and make a profit, while building long-term equity. The price of residential properties rely heavily on "comps" (the selling price of similar homes in the area) and not on cash flow. Because of this, you will more than likely end up paying much more for a house and if the local market takes a dive, the value of your property will more-than-likely plunge as well.</div><div>That's why the fastest and easiest way to make a profit in income property is not to purchase a home, fix and flip it, but to find a multi-unit complex or apartment building who's seller has owned the property for many years and is charging below-market rents. As the new landlord you can come in, raise the rents, find new tenants and increase the value of the property by boosting its income stream. Now there is a risk in this. You must be able to cover any vacancies until you get them occupied. Another option is to leave the current tenants in place, but sign them to shorter lease terms. One year, versus long-term leases of five to ten years. This way you can eventually replace them with tenants willing to pay more, ensuring a higher stream of cash flow.</div><div>Apartment buildings, off-campus housing (near community colleges and major universities), and multi-unit complexes, are all opportunities smart investors should be taking advantage of, especially in the depressed California market place, where you are able to find distressed owners willing to give up the property for much less. There are opportunities and possibilities in every market. Do you homework and you'll find your reward!</div><div><br /></div><div><br /></div>Andrea Bolderhttp://www.blogger.com/profile/03456015475456641883noreply@blogger.com0tag:blogger.com,1999:blog-2842325916560759184.post-85642628393987895562009-06-12T08:33:00.000-07:002009-06-12T08:44:19.724-07:00Update on the $8000 Homebuyers Tax-Credit-How to Use the Loan for Your Downpayment<span class="Apple-style-span" style="font-family: Arial; font-size: 13px; "><div class="headline" style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; outline-style: none; outline-width: initial; outline-color: initial; font-family: Arial, Helvetica, sans-serif; font-size: 160%; line-height: 125%; ">How to Use the Tax Credit for Downpayments</div><br /><div class="deck" style="margin-top: 0px; margin-right: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; outline-style: none; outline-width: initial; outline-color: initial; font-family: Arial, Helvetica, sans-serif; font-size: 120%; color: rgb(115, 115, 115); line-height: 120%; margin-bottom: 16px; ">Potential first-time buyers have yet another reason to consider purchasing a home: the monetization of the tax credit. Here are four ways your clients can get access to those funds for upfront costs.</div><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; ">Short-term bridge loans are now available from a variety of lenders so that buyers can tap the benefits of the $8,000 Federal Housing Tax Credit for First-Time Home Buyers upfront. If your clients are eligible for the tax credit, these bridge loans will enable them to use the money for their down payment and closing costs with the credit as collateral. Consumers will have to pay the money back after they’ve filed their tax return and received a refund.</p><p align="left" style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; "> </p><p align="left" style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; ">There are essentially four sources for this type of financing, and their terms can vary considerably.</p><p align="left" style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; "> </p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; "><strong style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; ">1. State HFA Bridge Loans</strong></p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; "><br /></p><p align="left" style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; ">As of early June 2009, 10 state Housing Finance Agencies offered tax-credit bridge loans, and more were planning to do so. The easiest way to learn whether one is offered in your state is to get your HFA’s phone number through a<a href="http://www.ncsha.org/section.cfm/4/39/187" target="_blank" style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; text-decoration: none; color: rgb(0, 51, 102); ">Housing Finance Agency list</a> maintained by the National Council of State Housing Agencies (NCSHA). NCSHA also maintains a <a href="http://www.ncsha.org/section.cfm/3/34/2920" target="_blank" style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; text-decoration: none; color: rgb(0, 51, 102); ">list of HFAs</a> that already offer the bridge loans. The HFAs with loan programs already in place are Colorado, Delaware, Idaho, Kentucky, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, and Tennessee.</p><p align="left" style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; "> </p><p align="left" style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; ">If your state HFA offers the loans, you should be able to get more information about them on the agency’s Web site. Look for “tax credit advance loan” or some variant of that, or else look for information on the HFA’s regular mortgage program, which should include info on the tax-credit advance loan somewhere. Although each state HFA loan differs, here are some typical characteristics:</p><p align="left" style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; "> </p><p align="left" style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; "> </p><ul style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; "><li style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; ">You’ll need to make a minimum downpayment from your own funds, probably around $1,000.</li><li style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; ">You’ll have to go through local lenders approved by the HFA to actually originate the loan, since HFAs are not originators.</li><li style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; ">In some cases, the loans are interest-free; check with the state HFA to find out.</li><li style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; ">The HFAs have set aside a limited amount of funds for the loans, so they tend to be made on a first-come, first-served basis.</li><li style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; ">You’ll be expected to use HFA-backed financing for the mortgage on your home purchase. This financing typically comes with a below-market interest rate and usually requires borrowers to meet eligibility criteria. These criteria will vary greatly, but they often require borrowers to be first-timer buyers and meet income-eligibility requirements. For the bridge loans, there’s a good chance the criteria will be similar to what’s required for the tax credit.</li></ul><p align="left" style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; "> </p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; ">Since the bridge loans are made in tandem with your HFA’s financing products, you apply for the loans when you apply with the HFA-approved lender for your mortgage financing. You should be able to find a list of approved lenders on the HFA’s Web site.</p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; "> </p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; "><strong style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; ">2. Local Government or Nonprofit Loans</strong></p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; "><br />If your state HFA doesn’t offer the loans, you can ask an HFA staff person to direct you to local nonprofits or state or local government agencies that do. If that person can’t help you, a good place to start a search is with a national nonprofit group called NeighborWorks, which maintains a <a href="http://www.nw.org/network/nwdata/NeighborWorksOrganizations.asp" target="_blank" style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; text-decoration: none; color: rgb(0, 51, 102); ">list of more than 200 local affiliates</a> that provide housing assistance. The loan programs for each of these affiliates differ, so you or your client will need to check with them on their underwriting standards and loan terms—and even on whether they make bridge loans repayable with the tax credit.</p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; "> </p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; "><strong style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; ">3. Local HFAs</strong></p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; "><br />Another source, if your state HFA can’t help you, might be the <a href="http://www.nalhfa.org/" target="_blank" style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; text-decoration: none; color: rgb(0, 51, 102); ">National Association of Local Housing Finance Agencies</a>. Local HFAs are much like state HFAs but with jurisdictions limited to their locality. To learn whether there’s a local HFA in your area, call NALHFA at 202/367-1197.</p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; "> </p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; "><strong style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; ">4. FHA-approved Lenders</strong></p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; "><br />If you’re unable to identify a state or local HFA or other governmental agency or nonprofit to assist you, you can tap bridge-loan assistance if you work with a lender approved by the U.S. Department of Housing and Urban Development to originate FHA-backed loans. HUD maintains a <a href="http://www.hud.gov/ll/code/llslcrit.cfm" target="_blank" style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; text-decoration: none; color: rgb(0, 51, 102); ">database of FHA lenders</a> on its Web site that’s searchable by a number of criteria including city, state, county, and service area.</p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; "> </p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; ">In a difference with the assistance provided by state and local agencies or nonprofits, the bridge loans provided by private, for-profit FHA-approved lenders must be structured in the form of a personal loan or line of credit collateralized by the tax credit. The bridge loan can’t be structured as a second mortgage.</p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; "> </p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; ">Also, although FHA allows you to use the bridge loan to cover your closing costs or to buy down your interest rate, you can use it for the down payment only after you’ve covered the 3.5 percent minimum that’s required on any FHA loan. Thus, you’ll have to come up with the 3.5 percent minimum down payment yourself or else tap another source of assistance for it. That can include gifts from family. Seller-funded down-payment programs are not permitted. HUD provides complete details in a <a href="http://portal.hud.gov/pls/portal/docs/PAGE/FHA_HOME/LENDERS/MORTGAGEE_LETTERS/2009_MORTGAGEE_LETTERS/09-ML-15%20USING%20FIRST-TIME%20HOMEBUYER%20TAX%20CREDITS.PDF" target="_blank" style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; text-decoration: none; color: rgb(0, 51, 102); ">May 29 Mortgagee Letter on “Using First-Time Homebuyer Tax Credits” (2009-15)</a> that went to its approved lenders.</p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; "> </p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; ">Since it’s the HUD-approved lender and not FHA itself that’s making the bridge loan, actual loan terms will vary. At a minimum, though, the bridge loan must meet certain restrictions, most of them imposed to weed out fraud or ensure borrowers aren’t getting in over their heads. These include:</p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; "> </p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; "> </p><ul style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; "><li style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; ">Loans can’t result in cash back to the borrower.</li><li style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; ">The amount can’t exceed what’s needed for the downpayment, closing costs, and prepaid expenses.</li><li style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; ">If there’s a monthly repayment, it must be included within the qualifying ratios and, when combined with the first mortgage, can’t exceed the borrower’s reasonable ability to pay.</li><li style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; ">Payments must be deferred for at least 36 months to not be included in the qualifying ratios.</li><li style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; ">There can be no balloon payment required before 10 years.</li></ul><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; "> </p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; "><strong style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; ">Start with the Deepest Assistance First</strong></p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; "><br />Since state HFA bridge loans are typically allowed for as much of the downpayment as possible (up to the credit limit of $8,000), your client’s best bet is to start with the state HFA. If it doesn’t have a program in place, learn what you can from it about other state or local programs, including nonprofits. If these sources don’t pan out, your buyer can work with an FHA-approved lender. However, since HUD requires borrowers to put down a minimum of 3.5 percent, they can access bridge-loan assistance only for other upfront expenses such as closing costs, an interest-rate buy-down, or a portion of the downpayment above 3.5 percent.</p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; "><br /></p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; text-decoration: none; font-size: 1em; outline-style: none; outline-width: initial; outline-color: initial; ">Source <span class="Apple-style-span" style="font-size: 11px; font-style: italic; line-height: 11px; ">REALTOR® magazine June 2009 </span></p></span>Andrea Bolderhttp://www.blogger.com/profile/03456015475456641883noreply@blogger.com2tag:blogger.com,1999:blog-2842325916560759184.post-20141902619783085682009-06-03T17:21:00.000-07:002009-06-03T17:26:23.094-07:00What Info Is Needed When Filling Out a Loan Application<!--StartFragment--> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">What information will be needed when Buyer's are applying for a loan</span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Here is a list of the information mortgage lenders will use to consider your loan application.</span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">For all loans</span></p><p class="MsoNormal"><span class="Apple-style-span" style="font-size: 15px;"><br /></span></p><p class="MsoNormal"><span class="Apple-style-span" style=" "><span class="Apple-style-span" style="font-size: medium;">Social Security Number, for borrower and co-borrower if any</span></span></p><p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Employment History<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">For the last two years, employment dates, addresses, salary.<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Current pay stubs or W-2 forms.<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;"><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Check and Savings Accounts and Certificates of Deposit<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Location of bank accounts, account numbers and balances; <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Address of bank if out of town <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Last 3 months' statements<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;"><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Stocks, Bonds, and Investment Accounts<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Broker's name and address, description of stocks, bonds, etc. <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Last 3 months' statements or copies of stock certificates<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;"><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Life Insurance Policies<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Insurance company, policy number, face amount, cash value, if any<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;"><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Retirement Plan<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Approximate vested interest value<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Copy of latest statement<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;"><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Automobiles<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Make and model of automobiles, their resale value<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;"><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Other Assets<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Market value of personal and household property<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;"><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Liabilities and Other Non-Mortgage Debt<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Creditors names, addresses, account numbers<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Monthly payments and balances<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;"><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Other income information you may need<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;"><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">If you're self-employed<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Two years tax returns, profit and loss statements, both company and personal if separate. <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Current balance sheet and profit and loss statement if more than two months into the new fiscal year, signed by CPA.<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;"><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">If you have income from:<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Commission <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Overtime <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Bonus <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Partnership <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Rental Property <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Trust <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Notes Receivable <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Interest/Dividends <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">You'll need two years' personal federal tax returns<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;"><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">If employed in family business<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Personal federal income tax returns and all schedules for the past two years<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;"><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">If divorced or separated<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Complete executed divorce decree and settlement agreement<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Payment history of alimony/child support over the past 12 months, if it is a financial obligation. <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">If you choose to have this be considered as part of your income (you don't have to), be prepared to provide 12 months canceled checks or bank statements reflecting income deposits.<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;"><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">If you own real estate</span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Name and address of all mortgage lenders for the past 24 months, account numbers, monthly payments and balances</span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">If you've sold your home but not closed:<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">A copy of the sales contract</span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">If you've sold your home, closed, and you will use the proceeds for your new down payment:<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">A copy of the HUD-1 Uniform Settlement Statement<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;"><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">If you rent </span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Name, address and phone number of landlords for the past 24 months<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;"><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">If you're buying a home </span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Purchase sales contract or offer to purchase and all addenda<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Furnish contract with original signatures of buyer and seller <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;"><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">If a source of your down payment is a gift:<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Name, address and relationship of donor. <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Gift funds will be verified in both the donor and recipient's accounts. <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Note: Not all loan programs allow gifts to be part of your down payment.<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;"><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">For FHA Financing<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Evidence of Social Security Number and photo identification<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;"><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">For VA Financing<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">DD214 and Certificate of Eligibility<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;"><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">For Construction/Perm Loan<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;">Signed construction with cost breakdown, builder plan and specifications<o:p></o:p></span></p><p class="MsoNormal"><span class="Apple-style-span" style="font-size: 15px;">Happy House Hunting!</span></p> <p class="MsoNormal"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;"><o:p> </o:p></span></p> <p class="MsoNormal" style="text-align: right;"><span style="font-size:11.0pt;mso-bidi- font-family:Georgia;font-size:12.0pt;"><o:p> </o:p></span></p> <!--EndFragment-->Andrea Bolderhttp://www.blogger.com/profile/03456015475456641883noreply@blogger.com0tag:blogger.com,1999:blog-2842325916560759184.post-47060995718941486312009-05-29T11:49:00.000-07:002009-05-29T11:50:27.679-07:00Forecasters Say Recession Nearing End<span><span class="Apple-style-span" style="font-size: medium;"><span class="Apple-style-span" style="color: rgb(153, 153, 153);">More than 90 percent of economists think the recession is nearing its end, but they don't expect the economy to soar anytime soon.</span></span></span><span class="Apple-style-span" style="font-size: medium;"><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><br /><br /></span></span><span><span class="Apple-style-span" style="font-size: medium;"><span class="Apple-style-span" style="color: rgb(153, 153, 153);">Nearly 75 percent of economists, surveyed by the National Association for Business Economics, say that the recession will end in the third quarter. Another 19 percent think the turnaround will come in the fourth quarter. The rest are betting on the first quarter of 2010.</span></span></span><span class="Apple-style-span" style="font-size: medium;"><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><br /><br /></span></span><span><span class="Apple-style-span" style="font-size: medium;"><span class="Apple-style-span" style="color: rgb(153, 153, 153);">Americans seem to believe that things are getting better too. The Conference Board's Consumer Confidence Index rose 14.1 points in May to 54.9, the second month in a row in which there have been an increase.</span></span></span><span class="Apple-style-span" style="font-size: medium;"><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><br /><br /></span></span><span><span class="Apple-style-span" style="font-size: medium;"><span class="Apple-style-span" style="color: rgb(153, 153, 153);">Forecasters say that home sales will bottom out in the second quarter, an important stabilizing factor.</span></span></span><span class="Apple-style-span" style="font-size: medium;"><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><br /><br /></span></span><i><span><span class="Apple-style-span" style="font-size: medium;"><span class="Apple-style-span" style="color: rgb(153, 153, 153);">Source: The Associated Press, Jeannine Aversa (05/27/2009)</span></span></span></i>Andrea Bolderhttp://www.blogger.com/profile/03456015475456641883noreply@blogger.com0tag:blogger.com,1999:blog-2842325916560759184.post-13197528462200000972009-05-26T08:45:00.000-07:002009-05-26T08:46:20.844-07:00SINGLE FAMILY RESIDENCE VS. TOWNHOUSE VS. CONDO - PART I<span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">When I am working with first time homebuyers, most want to know the advantages and disadvantages of different house types. The decision to buy a condo, townhouse or a traditional single family house is one that takes much consideration. Each brings its own set of advantages and disadvantages. One type may be better suited to your budget and lifestyle than another. Also, depending on your location, you may find more choices of one particular type of home than others.</span></span><div><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;"><br /></span></span></div><div><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">1.</span></span><span class="Apple-tab-span" style="white-space:pre"><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;"> </span></span></span><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">Single Family Homes</span></span></span></div><div><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;"><br /></span></span></div><div><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">By far the most common form of housing, the most important distinguishing factors that determine a single family residence are that it sits on its own piece of land and it is not attached to anyone else's residence. Restrictions about what you can do with your property are primarily dictated by the city in which you live, but for the most part you can do with it as you wish. You will probably have a yard of some sort-from very small up to multiple acres-and your ownership will include all of it. </span></span></div><div><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;"><br /></span></span></div><div><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">Advantages of a SFR</span></span></span></div><div><ul><li><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">You can modify or improve it as you wish<br /></span></span></li><li><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">Re-sale value is generally the highest on a single family home</span></span></li><li><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">You can add on to the existing home if more room is needed</span></span></li><li><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">Generally there are no property management fees as there are in condo and many townhouses </span></span></li></ul></div><div><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">Disadvantages of a SFR</span></span></span></div><div><ul><li><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">All maintenance and repair costs are your responsibility including electricity, gas, water, sewer and trash removal</span></span></li><li><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">Lack of amenities (for example, community pools, gym, playgrounds, etc.) that you may find in a condo or townhouse</span></span></li><li><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">You are responsible for upkeep and landscaping</span></span></li><li><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">In most areas, SFRs are more expensive</span></span></li></ul></div><div><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">Is a Single Family Residence the Right Fit for You?</span></span></span></div><div><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;"><br /></span></span></div><div><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">You like your own "space"</span></span></div><div><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">You like modifying your home, making it your own-changing the color, the appearance, the size.</span></span></div><div><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">You like the idea of maintaining your own lawn, and the home's surroundings</span></span></div><div><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">You like the idea of being able to build your house</span></span></div><div><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;"><br /></span></span></div><div><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">2.</span></span><span class="Apple-tab-span" style="white-space:pre"><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;"> </span></span></span><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">Townhouses</span></span></span></div><div><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;"><br /></span></span></div><div><span class="Apple-style-span" style="-webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; "><span><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">A townhouse is a home that is attached to one or more other houses, but which sits directly on a parcel of land that you also own (if you don't own the land, it is a condominium</span></span></span><span><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">). Townhouses can ranges from duplexes and triplexes all the way through huge townhouse communities consisting of hundreds of similar homes. Townhouses to some degree offer attributes of both SFRs and condominiums. </span></span></span></span></div><div><span class="Apple-style-span" style="-webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; "><span><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;"><br />There is a good degree of variance in the way townhouse communities are structured. It may be a simple agreement (as is often the case of duplexes and triplexes) that each parcel of land and the home that sits on it is separately owned. In the case of larger townhouse communities, you will generally have an additional shared ownership in the common areas of the complex as well as any amenities such as swimming pools, park areas, etc. This ownership you will share jointly with all other townhouse owners in the complex. <br /><br />In any townhouse purchase that involves an Homeowners' Association</span></span></span><span><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">, it is critically important to get as much information as you can, since the association can have a considerable impact on your ownership experience! (<span class="Apple-style-span" style="font-style: italic;">we'll explore Homeowners' Associations in a later post</span>)</span></span></span></span><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;"><br /></span></span></div><div><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;"><br /></span></span></div><div><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">Advantages of a Townhouse</span></span></span></div><div><ul><li><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">Less exterior maintenance and repairs</span></span></li><li><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">There may be amenities in the community such as pools, tennis courts, playground, etc.</span></span></li><li><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">Sharing common walls with neighbors may bring a greater sense of security</span></span></li></ul><div><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">Disadvantages of a Townhouse</span></span></span></div><div><ul><li><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">You are responsible for Home Owner's Association fees (which cover common areas and other "perks" of community living)</span></span></li><li><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">Your options for changing the exterior look of your house will be limited</span></span></li><li><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">Sharing common walls with your neighbors, you give up privacy as compared to SFRs</span></span></li></ul><div><div><span class="Apple-style-span" style="font-weight: bold; "><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">Is a Townhouse the Right Fit for You?</span></span></span></div><div><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;"><br /></span></span></div><div><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">You like your own "space" but not having to deal with all of the exterior maintenance</span></span></div><div><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">You don't mind having neighbors close to you.</span></span></div><div><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">You like the idea of a small yard </span></span></div><div><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;"><br /></span></span></div><div><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">3.</span></span><span class="Apple-tab-span" style="white-space:pre"><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;"> </span></span></span><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;">Condominiums<span class="Apple-style-span" style="color: rgb(0, 0, 0); font-weight: normal; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; font-family:Times;"><span><span class="Apple-style-span" style="color: rgb(153, 153, 153); "><span class="Apple-style-span" style=" ;font-family:georgia;"><span class="Apple-style-span" style="font-size:medium;"></span></span></span></span></span></span></span></span></div><div><span class="Apple-style-span" style="color: rgb(153, 153, 153); -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;"><br /></span></div><div><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-size:medium;"><span class="Apple-style-span" style="color: rgb(0, 0, 0); font-weight: normal; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; font-family:Times;"><span><span class="Apple-style-span" style="color: rgb(153, 153, 153); "><span class="Apple-style-span" style=" ;font-family:georgia;"><span class="Apple-style-span" style="font-size:medium;">Condominium ownership is basically an apartment you own (in fact, many condominiums are apartments that have been converted over the years). Your ownership extends </span></span></span></span><i><span><span class="Apple-style-span" style="color: rgb(153, 153, 153); "><span class="Apple-style-span" style=" ;font-family:georgia;"><span class="Apple-style-span" style="font-size:medium;">inward</span></span></span></span></i><span><span class="Apple-style-span" style="color: rgb(153, 153, 153); "><span class="Apple-style-span" style=" ;font-family:georgia;"><span class="Apple-style-span" style="font-size:medium;"> from your interior walls, floors and ceilings. In addition, you are a partner, with all of the other owners in the complex, of the exterior structure (the foundation, exterior walls and roof) as well as any common areas and amenities (for example, swimming pools, clubhouses, tennis courts, play areas, etc.) </span><span class="Apple-style-span" style="color: rgb(0, 0, 0); font-family:Times;"><span><span class="Apple-style-span" style="color: rgb(153, 153, 153); "><span class="Apple-style-span" style=" ;font-family:georgia;"><span class="Apple-style-span" style="font-size:medium;">One of the requirements of condominium ownership is the payment of a monthly condo fee, which covers general repairs and maintenance to the common areas of the complex as well as (hopefully) build up a cash reserve for future needs. In general, all exterior maintenance and repairs are the responsibility of the condominium association</span></span></span></span><span><span class="Apple-style-span" style="color: rgb(153, 153, 153); "><span class="Apple-style-span" style=" ;font-family:georgia;"><span class="Apple-style-span" style="font-size:medium;">, although you will be charged for them, either through your association dues or a special assessment (a one time charge assessed to all owners for, as an example, a new roof). The normal day-to-day maintenance of the grounds (some examples are cutting the grass and maintaining the pool) are also the responsibility of the association. Interior maintenance and repairs (for example, replacing a dishwasher) are the responsibility of the individual owner. </span></span></span></span></span></span></span></span></span></span></span></span></div><div><span class="Apple-style-span" style="color: rgb(153, 153, 153); -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; "><span class="Apple-style-span" style="font-size:medium;"><br /></span></span></div><div><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="color: rgb(0, 0, 0); font-weight: normal; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; font-family:Times;"><span><span class="Apple-style-span" style="color: rgb(153, 153, 153); "><span class="Apple-style-span" style=" ;font-family:georgia;"><span class="Apple-style-span" style="color: rgb(0, 0, 0); font-family:Times;"><span><span class="Apple-style-span" style="color: rgb(153, 153, 153); "><span class="Apple-style-span" style=" ;font-family:georgia;"><span class="Apple-style-span" style="font-size:medium;">In some areas, a condominium may be the only consideration that fits within your budget. The reason for this is simple. In general, the same square footage will cost less in a condo setting than it will in a single family home or townhouse, due mainly to land cost--you can build many more condos than you can single family homes on the same amount of land. </span></span></span></span></span></span></span></span></span></span></span></div><div><span class="Apple-style-span" style="color: rgb(153, 153, 153); font-weight: bold; "><span class="Apple-style-span" style="font-size:medium;"><br /></span></span></div><div><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="color: rgb(0, 0, 0); font-weight: normal; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; font-family:Times;"><span><span class="Apple-style-span" style="color: rgb(153, 153, 153); "><span class="Apple-style-span" style=" ;font-family:georgia;"><span class="Apple-style-span" style="color: rgb(0, 0, 0); font-family:Times;"><span><span class="Apple-style-span" style="color: rgb(153, 153, 153); "><span class="Apple-style-span" style=" ;font-family:georgia;"><span class="Apple-style-span" style=" font-weight: bold; -webkit-border-horizontal-spacing: 0px; -webkit-border-vertical-spacing: 0px; font-family:Georgia;"><span class="Apple-style-span" style="font-size:medium;">Advantages of a Condominium</span></span></span></span></span></span></span></span></span></span></span></span></div><div><ul><li><span class="Apple-style-span" style="color: rgb(153, 153, 153); "><span class="Apple-style-span" style="font-size:medium;">Little or no exterior maintenance or repairs</span></span></li><li><span class="Apple-style-span" style="color: rgb(153, 153, 153); "><span class="Apple-style-span" style="font-size:medium;">Many condo communities offer amenities such as pools, tennis courts, playground, etc. </span></span></li><li><span class="Apple-style-span" style="color: rgb(153, 153, 153); "><span class="Apple-style-span" style="font-size:medium;">Condos are often more reasonably priced and are good entry level homes for first-time homebuyers or excellent for empty-nesters looking to downsize </span></span></li></ul><div><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><span class="Apple-style-span" style="font-weight: bold;">D</span><span class="Apple-style-span" style="font-size:medium;"><span class="Apple-style-span" style="font-weight: bold;">isadvantages of a Condominium</span></span></span></div><ul><li><span class="Apple-style-span" style="color: rgb(153, 153, 153); "><span class="Apple-style-span" style="font-weight: bold; "><span class="Apple-style-span" style="font-weight: normal; "><span class="Apple-style-span" style="font-size:medium;">You are responsible for Home Owner's Association fees Less privacy</span></span></span></span></li><li><span class="Apple-style-span" style="color: rgb(153, 153, 153); "><span class="Apple-style-span" style="font-weight: bold; "><span class="Apple-style-span" style="font-weight: normal; "><span class="Apple-style-span" style="font-size:medium;">Resale of a condo is harder and often takes longer to sell </span></span></span></span></li></ul><span class="Apple-style-span" style="color: rgb(153, 153, 153); font-weight: bold; "><span class="Apple-style-span" style="font-size:medium;">Is a Condominium the Right Fit for You?</span></span><span class="Apple-style-span" style="font-size:medium;"></span></div><div><span class="Apple-style-span" style="font-size:medium;"><span class="Apple-style-span" style="color: rgb(153, 153, 153); font-weight: bold;"><br /></span></span><span class="Apple-style-span" style="color: rgb(153, 153, 153); "><span class="Apple-style-span" style="font-size:medium;">You do not want to do any exterior maintenance or repairs</span></span></div><div><span class="Apple-style-span" style="color: rgb(153, 153, 153); "><span class="Apple-style-span" style="font-size:medium;">You like the idea of amenities</span></span></div><div><span class="Apple-style-span" style="color: rgb(153, 153, 153); "><span class="Apple-style-span" style="font-size:medium;">You don't mind having neighbors close to you.</span></span></div><div><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><br /></span></div><div><span class="Apple-style-span" style="color: rgb(153, 153, 153); "><span class="Apple-style-span" style="font-size:medium;">All three forms of ownership are good options...it's a matter of finding the best fit for you. A house gives you more independence, but also greater responsibility. A condo or townhouse has the security of more regular expenses and freedom from maintenance and repairs.</span></span><br /></div><div><span class="Apple-style-span" style="color: rgb(153, 153, 153);"><br /></span></div><div><span class="Apple-style-span" style="color: rgb(153, 153, 153);">Happy House Hunting!</span></div><div><span class="Apple-style-span" style=" -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; font-family:Times;font-size:19px;"><center><span class="Apple-style-span" style=" -webkit-border-horizontal-spacing: 0px; -webkit-border-vertical-spacing: 0px; font-family:Georgia;font-size:16px;"><div><div><div><div style="text-align: left;"><br /></div><div style="text-align: left;"><br /></div></div></div></div></span></center><center style="text-align: left;"><br /></center></span></div></div></div></div>Andrea Bolderhttp://www.blogger.com/profile/03456015475456641883noreply@blogger.com14tag:blogger.com,1999:blog-2842325916560759184.post-5893601270533819642009-05-18T19:58:00.000-07:002009-05-18T21:06:41.800-07:00So What's the Deal with those REOs?<span class="Apple-style-span" style=" line-height: 20px; font-family:Verdana;font-size:14px;"><h2 style="margin-top: 1em; margin-bottom: 0.2em; line-height: 1.15em; font-size:1.25em;"><span class="Apple-style-span" style=" font-weight: normal; font-family:georgia;font-size:14px;">Although most buyers are excited about the opportunities REOs (REO stands for Real Estate Owned by the beneficiary/lender that foreclosed) present in today’s real estate market, I find that many are also concerned about purchasing a home that can have many unseen problems which may not show up until long after escrow closes. This post is dedicated to addressing some of those concerns. </span><br /></h2><div class="entry" style="margin-top: 1em; "><p><strong><span class="Apple-style-span" style="font-family:georgia;">How Does a Home become an REO</span></strong></p><p><span class="Apple-style-span" style="font-family:georgia;">An REO is a foreclosed property. In California, when you buy a home, unless you pay cash for it, chances are you will have to finance the purchase. A home is financed in much the same way a car is financed - you sign legal documents called “a note” for a loan. The lender gives you the money which you agree to pay back with interest over a term of (usually) 30 years. If you default on the loan, the lender can then take the home back and sell it to someone else. The legal process of taking the home back for default on a note is called foreclosure. Although the process in California includes a trustee (a neutral third party-typically a title or escrow company) who is given the note and who is notified by the lender to begin foreclosure proceedings in the event of non-payment the basic idea remains the same: don't pay the mortgage (or property taxes or Homeowner's assessments) and lose the home.</span></p><p><span class="Apple-style-span" style="font-family:georgia;">In order to begin the foreclosure process, the lender is required by law to send a homebuyer who has defaulted on the loan a Notice of Default. The lender notifies the trustee in writing that the trustor (borrower) is in default, and instructs the trustee to initiate foreclosure proceedings. This notice is recorded at the county clerk recorder’s office in the county where the property is located and is a document of public record. This means that anyone with an interest in the property may see it. The notice states when the lender is planning on foreclosing, ie. the date of the trustee’s sale and the outstanding amount the homeowner can pay to cure the default and stop the trustee’s sale.</span></p><p><span class="Apple-style-span" style="font-family:georgia;">More often than not, the default is not cured and the trustee auctions the property to anyone who will buy it. If there are no buyers at the trustee’s sale, the house becomes a foreclosed property and is referred to as an REO - real estate owned by the lender.</span></p><p><strong><span class="Apple-style-span" style="font-family:georgia;">What you should know about an REO as a Homebuyer</span></strong></p><p><span class="Apple-style-span" style="font-family:georgia;">Most lenders are not in the business of real estate; they are in the business of finance. And so, the house acquired by a bank through a foreclosure is usually put back on the open market. To come up for a sales price for the property, the bank hires a Realtor® and asks for a BPO - a Broker Price Opinion. The Realtor® appraises the property based on similar properties also known as “comps” and offers to list it. Since most foreclosures are fixers, they are usually placed on the market for a substantially discounted price.</span></p><p><span class="Apple-style-span" style="font-family:georgia;">As a home buyer of a bank owned home, your concerns are justified. An REO is usually a fixer. The most obvious reason for this being the family that was foreclosed upon was low on finances. If they didn’t have enough to make their mortgage payments, chances are there are quite a few things about the house that went unrepaired. This is also called deferred maintenance. Deferred maintenance can be a small problem, like a leaky faucet, or can hide bigger problems, like a leaky faucet that rotted the bathroom sub-floor.</span></p><p><span class="Apple-style-span" style="font-family:georgia;">You should also be aware that as a purchaser of an REO, you don’t receive full disclosure about the house. The bank is not required to provide you with a Transfer Disclosure Statement, partially because the lenders have never been in the home and are unaware of what exactly is wrong with it. <span class="Apple-style-span" style="font-weight: bold; "></span></span></p><p><span class="Apple-style-span" style="font-family:georgia;"><span class="Apple-style-span" style="font-weight: bold; ">Resolve your Concerns</span></span></p><p><span class="Apple-style-span" style="font-family:georgia;">So is purchasing a foreclosure the best bet? Sure, the price is deeply discounted, but does that make up for everything else? While that's a question only you can answer, the one thing I stress to take the pain out of any future problems: Always, always, always get a physical inspection!</span></p><p><span class="Apple-style-span" style="font-family:georgia;">Brokers recommend a variety of inspections, including pest, roof, septic system and a complete home inspection. Disregarding any of these inspections can be a big mistake on the part of a homebuyer. While most banks will not repair any items listed as potential or real problems during these inspections, you can get an idea of how much work is involved in making the home as habitable as you want it and decide if the asking price is worth the risk and work involved. The price you pay for the inspections is well worth its weight in gold.</span></p><p><strong><span class="Apple-style-span" style="font-family:georgia;">You, The Homebuyer</span></strong></p><p><span class="Apple-style-span" style=" ;font-family:georgia;">With so many bargains out there in short sales, REOs and pre-foreclosures, if you are serious about buying a home at a deeply discounted price, chances are you will find what you are looking for. Do yourself a favor and get all the facts, look hard and long and don’t be scared to make an offer when you find the right one!</span><br /></p></div></span>Andrea Bolderhttp://www.blogger.com/profile/03456015475456641883noreply@blogger.com1tag:blogger.com,1999:blog-2842325916560759184.post-32228006127384427392009-05-15T14:38:00.000-07:002009-05-15T14:46:29.665-07:00<span class="Apple-style-span" style="font-family:'trebuchet ms';"><span class="Apple-style-span" style="font-size: small;">The Property Source is now supported by the Anderson Realty Team. </span></span><div><div><!--StartFragment--> <p class="MsoNormal" style="text-align:justify"><b style="mso-bidi-font-weight: normal"><span style=""><span class="Apple-style-span" style="font-family:'trebuchet ms';"><span class="Apple-style-span" style="font-size: small;">Meet the Team</span></span></span></b></p> <p class="MsoNormal" style="text-align:justify"><!--[if supportFields]><b style="'mso-bidi-font-weight:normal'"><span style="'font-family:"><span style="'mso-element:field-begin'"></span><span style="mso-spacerun: yes"> </span>CONTACT _Con-3A0847A716 <span style="'mso-element:field-separator'"></span></span></b><![endif]--><b style="mso-bidi-font-weight:normal"><span style=""><span style="mso-no-proof:yes"><span class="Apple-style-span" style="font-family:'trebuchet ms';"><span class="Apple-style-span" style="font-size: small;">Maurice Anderson</span></span></span></span></b><!--[if supportFields]><b style="'mso-bidi-font-weight:normal'"><span style="'font-family:"><span style="'mso-element:field-end'"></span></span></b><![endif]--><b style="mso-bidi-font-weight:normal"><span style=""><span class="Apple-style-span" style="font-family:'trebuchet ms';"><span class="Apple-style-span" style="font-size: small;">-Broker, REALTOR, GRI</span></span></span></b></p> <p class="MsoNormal" style="text-align:justify"><span style=""><span class="Apple-style-span" style="font-family:'trebuchet ms';"><span class="Apple-style-span" style="font-size: small;">Sharing his father’s passion for helping people realize their real estate objectives Maurice Anderson obtained his Brokers license and joined the company in 1976 after graduating from the University of Oregon with a BA degree in Finance and Business Economics.</span></span></span></p> <p class="MsoNormal" style="text-align:justify;tab-stops:409.5pt"><span style=""><span class="Apple-style-span" style="font-family:'trebuchet ms';"><span class="Apple-style-span" style="font-size: small;">Maurice is an expert in the southern california real estate market. Always willing to share his experiences and knowledge, he has taught courses at the local community colleges helping others realize their potential in becoming real estate agents.</span></span></span></p> <p class="MsoNormal" style="text-align:justify"><span style=""><span class="Apple-style-span" style="font-family:'trebuchet ms';"><span class="Apple-style-span" style="font-size: small;">His professional goal is to serve the client first.</span></span></span><span style=""><span class="Apple-style-span" style="font-family:'trebuchet ms';"><span class="Apple-style-span" style="font-size: small;"> </span></span></span><span style=""><span class="Apple-style-span" style="font-family:'trebuchet ms';"><span class="Apple-style-span" style="font-size: small;">Clients who are seeking to purchase a home appreciate the dedication and commitment he shows in partnering with them to view and understand what the current market offers. He takes the time needed to help clients realize their dreams, and works diligently to attain the highest price and best terms for his sellers and the best deal possible for his buyers by providing unique negotiating strategies that have proven successful on homes in every price range.</span></span></span><span style=""><span class="Apple-style-span" style="font-family:'trebuchet ms';"><span class="Apple-style-span" style="font-size: small;"><o:p></o:p></span></span></span></p> <p class="MsoNormal" style="text-align:justify"><!--[if supportFields]><b style="'mso-bidi-font-weight:normal'"><span style="'font-family:"><span style="'mso-element:field-begin'"></span><span style="mso-spacerun: yes"> </span>CONTACT _Con-3A0847A717 <span style="'mso-element:field-separator'"></span></span></b><![endif]--><b style="mso-bidi-font-weight:normal"><span style=""><span style="mso-no-proof:yes"><span class="Apple-style-span" style="font-family:'trebuchet ms';"><span class="Apple-style-span" style="font-size: small;">Susan Anderson</span></span></span></span></b><!--[if supportFields]><b style="'mso-bidi-font-weight:normal'"><span style="'font-family:"><span style="'mso-element:field-end'"></span></span></b><![endif]--><b style="mso-bidi-font-weight:normal"><span style=""><span class="Apple-style-span" style="font-family:'trebuchet ms';"><span class="Apple-style-span" style="font-size: small;">- Office Manager</span></span></span></b></p> <p class="MsoNormal" style="margin-bottom:12.0pt;text-align:justify;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span style=""><span class="Apple-style-span" style="font-family:'trebuchet ms';"><span class="Apple-style-span" style="font-size: small;">As an active member of the Long Beach community, Susan has a deep understanding and appreciation for the areas she serves.</span></span><span class="Apple-style-span" style="font-family:'trebuchet ms';"><span class="Apple-style-span" style="font-size: small;"><o:p></o:p></span></span></span></p> <p class="MsoNormal" style="margin-bottom:12.0pt;text-align:justify;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span style=""><span class="Apple-style-span" style="font-family:'trebuchet ms';"><span class="Apple-style-span" style="font-size: small;">After earning her BS degree in Psychology and a Masters in Public Affairs-Business Management-Curriculum and Instruction at the University of Oregon, Susan moved to the Long Beach area and </span></span></span><span style=""><span class="Apple-style-span" style="font-family:'trebuchet ms';"><span class="Apple-style-span" style="font-size: small;">raised three children here, gaining an even better insight into local communities, entertainment, services and schools.</span></span><span class="Apple-style-span" style="font-family:'trebuchet ms';"><span class="Apple-style-span" style="font-size: small;"><o:p></o:p></span></span></span></p> <p class="MsoNormal" style="margin-bottom:12.0pt;text-align:justify;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span style=""><span class="Apple-style-span" style="font-family:'trebuchet ms';"><span class="Apple-style-span" style="font-size: small;">Since 1979, Susan has been effectively representing both sellers and buyers in purchases of single-family homes and condominiums, as well as investment properties. She loves what she does and enjoys greatly the interaction and relationships with both clients and other real estate professionals. In addition, Susan works as the office manager, helping to guide other associates through their transactions.</span></span><span class="Apple-style-span" style="font-family:'trebuchet ms';"><span class="Apple-style-span" style="font-size: small;"><o:p></o:p></span></span></span></p> <p class="MsoNormal" style="text-align:justify"><b style="mso-bidi-font-weight: normal"><span style=""><o:p><span class="Apple-style-span" style="font-family:'trebuchet ms';"><span class="Apple-style-span" style="font-size: small;"> </span></span></o:p></span></b></p> <p class="MsoNormal" style="text-align:justify"><b style="mso-bidi-font-weight: normal"><span style=""><span class="Apple-style-span" style="font-family:'trebuchet ms';"><span class="Apple-style-span" style="font-size: small;">Andrea Bolder-REALTOR, REO Buyers Agent</span></span></span></b></p> <p class="MsoNormal" style="text-align:justify;mso-pagination:none;mso-layout-grid-align: none;text-autospace:none"><span style=""><span class="Apple-style-span" style="font-family:'trebuchet ms';"><span class="Apple-style-span" style="font-size: small;">Andrea is the newest addition to the Anderson Realty team. </span></span></span><span style=""><span class="Apple-style-span" style="font-family:'trebuchet ms';"><span class="Apple-style-span" style="font-size: small;">A former professional track & field athlete and Olympian, Ms. Bolder has nearly eight years of professional sales experience.</span></span></span></p> <p class="MsoNormal" style="text-align:justify;mso-pagination:none;mso-layout-grid-align: none;text-autospace:none"><span style=""><span class="Apple-style-span" style="font-family:'trebuchet ms';"><span class="Apple-style-span" style="font-size: small;">Andrea holds a BS in Biochemistry from the University of California, Los Angeles where she attended on a full scholarship and was awarded multiple honors, including All-American, three-time Pac-10 Champion and NCAA National Champion. Upon graduation, she traveled the world running professionally for two years before entering the business arena.</span></span></span></p> <p class="MsoNormal" style="text-align:justify;mso-pagination:none;mso-layout-grid-align: none;text-autospace:none"><span style=""><span class="Apple-style-span" style="font-family:'trebuchet ms';"><span class="Apple-style-span" style="font-size: small;">Andrea worked as a sales account manager with a major corporation before committing full time to real estate. The same professionalism and dedication that made her successful in the athletic and corporate world she now brings to her real estate clients and customers.</span></span></span></p> <p class="MsoNormal" style="text-align:justify"><span style=""><span class="Apple-style-span" style="font-family:'trebuchet ms';"><span class="Apple-style-span" style="font-size: small;">Let Anderson Realty be your partner in Real Estate!</span></span><o:p></o:p></span></p> <!--EndFragment--> </div></div>Andrea Bolderhttp://www.blogger.com/profile/03456015475456641883noreply@blogger.com2tag:blogger.com,1999:blog-2842325916560759184.post-65765252565049944642009-04-13T14:17:00.000-07:002009-04-13T14:18:23.426-07:00The First Steps Series-Finding a Realtor<p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 11.0px Times"><!--StartFragment--> </p><p class="MsoNormal"><span style="font-family:"Century Gothic";color:#333333">A Real Estate Agent will help you save time and effort in your search for a new home. They have access to home buying tools and with their experience will guide you through the buying process. An agent will assist in finding a home that suits your needs and price range. They’ll help you:<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:"Century Gothic";color:#333333"><o:p> </o:p></span></p> <p class="MsoNormal" style="margin-left:111.0pt;text-indent:-.25in;mso-list:l0 level1 lfo1; tab-stops:list 111.0pt"><span style="font-family:"Century Gothic"; mso-fareast-font-family:"Century Gothic";mso-bidi-font-family:"Century Gothic"; color:#333333"><span style="mso-list:Ignore">1.<span style="font:7.0pt "Times New Roman""> </span></span></span><span style="font-family:"Century Gothic"; color:#333333">understand the contracts and paperwork <o:p></o:p></span></p> <p class="MsoNormal" style="margin-left:111.0pt;text-indent:-.25in;mso-list:l0 level1 lfo1; tab-stops:list 111.0pt"><span style="font-family:"Century Gothic"; mso-fareast-font-family:"Century Gothic";mso-bidi-font-family:"Century Gothic"; color:#333333"><span style="mso-list:Ignore">2.<span style="font:7.0pt "Times New Roman""> </span></span></span><span style="font-family:"Century Gothic"; color:#333333">find a home that meets your needs<o:p></o:p></span></p> <p class="MsoNormal" style="margin-left:111.0pt;text-indent:-.25in;mso-list:l0 level1 lfo1; tab-stops:list 111.0pt"><span style="font-family:"Century Gothic"; mso-fareast-font-family:"Century Gothic";mso-bidi-font-family:"Century Gothic"; color:#333333"><span style="mso-list:Ignore">3.<span style="font:7.0pt "Times New Roman""> </span></span></span><span style="font-family:"Century Gothic"; color:#333333">search property values in your area<o:p></o:p></span></p> <p class="MsoNormal" style="margin-left:111.0pt;text-indent:-.25in;mso-list:l0 level1 lfo1; tab-stops:list 111.0pt"><span style="font-family:"Century Gothic"; mso-fareast-font-family:"Century Gothic";mso-bidi-font-family:"Century Gothic"; color:#333333"><span style="mso-list:Ignore">4.<span style="font:7.0pt "Times New Roman""> </span></span></span><span style="font-family:"Century Gothic"; color:#333333">negotiate the offer<o:p></o:p></span></p> <p class="MsoNormal" style="margin-left:111.0pt;text-indent:-.25in;mso-list:l0 level1 lfo1; tab-stops:list 111.0pt"><span style="font-family:"Century Gothic"; mso-fareast-font-family:"Century Gothic";mso-bidi-font-family:"Century Gothic"; color:#333333"><span style="mso-list:Ignore">5.<span style="font:7.0pt "Times New Roman""> </span></span></span><span style="font-family:"Century Gothic"; color:#333333">coordinate the closing process<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:"Century Gothic""><br />Buying and selling real estate is a complex process. Every property is unique. No two properties are alike. Homes differ and so do contract terms, financing options, inspection requirements and closing costs. Also, no two transactions are alike. An experienced agent can walk you through the legal forms, financing, inspections, marketing, pricing and negotiating. <o:p></o:p></span></p><p class="MsoNormal"><span class="Apple-style-span" style="font-family: 'Century Gothic';">Talk to family and friends. See what experiences they had with the Realtors that sold them their homes. Ask for referrals but make sure that the agent is right for you. Take the time to interview more than one agent. In the times of where over 80% of both buyers and sellers turn to the internet when they initially decide to buy or sell, it is to your advantage to have a tech savvy REALTOR. Remember, your agent is an extension of you and you want to make sure he/she represents you well.</span></p><p></p>Andrea Bolderhttp://www.blogger.com/profile/03456015475456641883noreply@blogger.com0tag:blogger.com,1999:blog-2842325916560759184.post-30289536696231779962009-03-31T18:09:00.000-07:002009-03-31T18:13:04.098-07:00The First Steps Series-Get Pre-Approved<!--StartFragment--> <h1><span style="Century Gothic";font-family:";font-size:14.0pt;color:#009999;">Get Pre-approved for a Loan<o:p></o:p></span></h1> <p class="MsoNormal"><span style="Century Gothic"font-family:";">Very few people buy a home with cash. According to the National Association of REALTORS® (NAR), nearly nine out of 10 buyers finance their purchase, which means that most all buyers -- especially first-time purchasers -- require a loan.<o:p></o:p></span></p> <p class="MsoNormal"><span style="Century Gothic"font-family:";">When it comes to financing, the real issue is not getting a loan (anyone willing to pay higher interest rates can find a mortgage), but getting the loan that provides a mortgage with the lowest cost and best terms.<o:p></o:p></span></p> <p class="MsoNormal"><span style="Century Gothic"font-family:";">Agents suggest that serious buyers start the mortgage process well before bidding on a home. By meeting with lenders and looking at loan options, you will find which programs best meet your needs and how much you can afford. <o:p></o:p></span></p> <p class="MsoNormal"><span style="Century Gothic"font-family:";">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.<o:p></o:p></span></p> <p class="MsoNormal"><span style="Century Gothic"font-family:";"><br />A pre-approval letter, unlike a pre-qualification letter, involves verification of your financial information. The lender will ask for documentation to confirm your employment, the source of your down payment and other aspects of your financial circumstances. Granted, a pre-approval is more time-consuming (and possibly more stressful) than a pre-qualification. The additional due diligence is exactly why the pre-approval carries more weight and shows your borrowing power. <span style="mso-spacerun: yes"> </span>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.<o:p></o:p></span></p> <p class="MsoNormal"><span style="Century Gothic"font-family:";">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.</span><span class="bold"> </span><span class="bold"><span style="Century Gothic"font-family:";">You'll have more leverage in negotiations with the seller.</span></span><span style="Century Gothic"font-family:";"> Sellers often prefer to negotiate with pre-approved buyers because the sellers know such buyers are financially qualified to obtain the financing they need to close the transaction. A pre-approval letter is an especially favorable point in situation where the seller is presented multiple offers. <o:p></o:p></span></p> <p class="MsoNormal"><span class="bold"><span style="Century Gothic"font-family:";">Keep in mind, pre-approval letters aren't binding on the lender, are subject to an appraisal of the home you want to purchase and are time-sensitive.</span></span><span style="Century Gothic"font-family:";"> If your financial situation changes (e.g., you lose your job, lease a car or run up credit-card bills), interest rates rise or a specified expiration date passes, the lender will review your situation and recalculate your maximum mortgage amount accordingly.<o:p></o:p></span></p> <p class="MsoNormal"><o:p> </o:p></p> <p class="MsoNormal"><span class="subheading"><b style="mso-bidi-font-weight:normal"><span style="Century Gothic"font-family:";">How do you get pre-approval?<o:p></o:p></span></b></span></p> <p class="MsoNormal"><span style="Century Gothic"font-family:";"><br />Real estate financing can be obtained from a number of sources, including banks, savings and loan, credit unions, mortgage companies, various government lenders and in some cases, individual REALTORS® themselves. Talk with several lenders before you decide. Your real estate broker will be familiar with lenders in the area and what they are offering. With their experience they can usually suggest lenders that have a variety of programs and competitive rates.<o:p></o:p></span></p> <p class="MsoNormal"><span style="Century Gothic"font-family:";">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. <o:p></o:p></span></p> <p class="MsoNormal"><span style="Century Gothic"font-family:";">This is also an opportunity to ask your lender about the following programs:<o:p></o:p></span></p> <p class="MsoNormal" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level1 lfo1; tab-stops:list 1.0in"><span style="font-family:Symbol; mso-fareast-font-family:Symbol;mso-bidi-font-family:Symbol;"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman""> </span></span></span><b style="mso-bidi-font-weight:normal"><span style="Century Gothic"font-family:";">Government Loan Programs:</span></b><span style="Century Gothic"font-family:";"> FHA and VA offer loan programs particularly beneficial to low-and moderate-income individuals. <o:p></o:p></span></p> <p class="MsoNormal" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level1 lfo1; tab-stops:list 1.0in"><span style="font-family:Symbol; mso-fareast-font-family:Symbol;mso-bidi-font-family:Symbol;"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman""> </span></span></span><b style="mso-bidi-font-weight:normal"><span style="Century Gothic"font-family:";">State and Local Housing Programs: </span></b><span style="Century Gothic"font-family:";">Potential home buyers can familiarize themselves with a variety of state and local housing programs that offer additional benefits in their local area<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></span></p> <p class="MsoNormal"><span style="Century Gothic"font-family:";"><span style="mso-tab-count:1"> </span><o:p></o:p></span></p> <p class="MsoNormal"><span style="Century Gothic"font-family:";">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.<o:p></o:p></span></p> <p class="MsoNormal"><span style="Century Gothic"font-family:";"><o:p> </o:p></span></p> <!--EndFragment-->Andrea Bolderhttp://www.blogger.com/profile/03456015475456641883noreply@blogger.com2tag:blogger.com,1999:blog-2842325916560759184.post-19888367140624521072009-03-27T11:33:00.000-07:002009-03-27T11:34:33.178-07:00The First Steps Series-Credit Scores and Credit Reports-Part 2<strong>What is a Credit Score and Credit Report?</strong><br /><br /><strong>Credit Scores<br /></strong>A credit score is a single number that helps lenders and others decide how likely you are to repay your debts. One kind of credit score is a FICO score (FICO stands for Fair Isaac Corporation Inc., the company that developed a common scoring method). FICO scores range from 300 - 850 points.<br />When you apply for a mortgage, your credit score is evaluated. Your credit score may also be used to determine the mortgage interest rate.<br />Your credit score is based on several types of information contained in your credit report:<br />Your payment history.Late payments will decrease your credit score.<br />The amount of debt you owe.If your credit cards are at their limits, this can lower your credit score - even if the amount you owe isn't large.<br />How long you've used credit.Your credit history is important. If you show a pattern of managing your credit wisely, keeping credit card balances low, and paying your bills on time, your credit score will be positively affected.<br />How often you apply for new credit and take on new debt.If you've applied for several credit cards at the same time, your credit score can go down.<br />The types of credit you currently use.This includes credit cards, retail accounts, installment loans, finance company accounts, and mortgages.<br />Your credit score is only one factor in the credit decision. Mortgage lenders also look at your credit report, employment history, income, debt-to-income ratio, and the value of the home you want to buy.<br /><br /><strong>What the Numbers Mean</strong><br />FICO does not make specific statistics available to the public regarding credit scores. However, they do provide some snapshot numbers that can help you understand how to interpret your credit score:<br />Credit scores ranging from 770 to 850 are considered very good, and the best credit rates are usually available to borrowers within this<br />Credit scores above 700 are considered good, according to FICO, and most borrowers' credit scores are within this range. The median credit score is about 725.<br />When credit scores are below the mid-600s borrowers may experience higher interest rates when looking for a loan.<br />It is important to remember that credit scores are like snapshots of your credit – they show a "picture" of your credit based on current information. By using credit wisely, you can improve your score over time.<br /><br /><br /><strong>Credit and Credit Reports</strong><br />Your credit can have a big influence on whether or not you can get a mortgage, as well as the terms of the loan and the interest rate. If you have good credit, you will have a wider range of options. That is why it is important to understand what affects your credit and to monitor your credit reports regularly.<br />Your credit report should accurately represent your credit history. From the moment you first apply for a loan or a credit card, you likely have a credit history.<br />Credit-related transactions appear on your credit report, including your current debts, paid debts, and payment histories. Your credit report is compiled by three private companies: <a href="http://www.equifax.com/" target="fmDaughter">Equifax</a>, <a href="http://www.experian.com/" target="fmDaughter">Experian</a>, and <a href="http://www.transunion.com/" target="fmDaughter">TransUnion</a>. These companies sell your credit report to banks and other creditors so they can review your past credit history.Your credit report includes:<br />A list of debts and a history of how you've paid them.This can include credit cards, car loans, and student loans.<br />Any bills referred to a collection agency.This can include phone and medical bills.<br />Public record information.This can include tax liens and bankruptcies.<br />Inquiries made about your creditworthiness.An inquiry is made when you apply for credit. Your credit report can also show if you were given credit based on the inquiry.<br />Adverse or derogatory credit information in your credit report is required to be deleted after 7 years (bankruptcy-related information and federal tax liens are required to be deleted after 10 years). Your credit report is continuously updated, which is why you should always know what it looks like.<br />Additionally, regular monitoring of your credit can help you spot and put a stop to identity theft early before your credit is seriously harmed.<br /><p>Happy House Hunting!<br /><br /></p>Andrea Bolderhttp://www.blogger.com/profile/03456015475456641883noreply@blogger.com1tag:blogger.com,1999:blog-2842325916560759184.post-48534793620744746982009-03-23T11:54:00.000-07:002009-03-23T11:54:27.246-07:00The First Steps Series-Establishing Good Credit-Part 1So you're thinking about buying a home? Well one of the most important factors you should be thinking about is your credit. The first step in the <span class="blsp-spelling-error" id="SPELLING_ERROR_0">homebuying</span> process is understanding your credit.<br />When you apply for a mortgage, lenders will review your credit report. Your credit report is a history of how you've managed your finances: it's a record of money you've borrowed, your history of paying it back, and how much open credit is available to you.<br />Your credit report follows you wherever you go and will have a big influence on whether or not you can get a mortgage, the terms of that loan, and the interest rate. If you have good credit, you may have a much wider range of mortgage options with lower rates.<br /><br />So how do you better understand credit?<br /><br />Be aware of how important your credit history is to the process.<br /><ol><li>Building good credit is not difficult, but it does require time and patience. Here are some tips to follow:<br /><strong>Pay your bills on time</strong>. Credit Scores emphasize your most recent payment record. Paying on time raises your credit score. If you've been late, start paying on time!<br />Pay at least the minimum amount required. If you can pay more do so- it's a good idea if you can afford to. But you should never pay less than the minimum.<br /><strong>Keep your credit card balances low</strong>. "Maxing out" your credit cards can lower your credit score.<br /><strong>Don't apply for too many loans or new accounts</strong>. Applying for a lot of credit in a short period of time may concern lenders that you won't manage your debt well. Only apply for credit when you need it.<br /><strong>Keep your debt-to-income ratio at 20%</strong>. Generally, you should not have debt that's more than 20% of your net monthly income.<br /><strong>Establish credit if you don't have any</strong>. Open a free or low-cost checking or savings account and make regular deposits. Only write checks when you have money to pay for things. And apply for one or two credit cards, use them carefully, and pay them off each month.</li></ol><p>Next time we'll talk about Credit Scores and Credit Reports!</p><p>Happy House Hunting!!<br /></p>Andrea Bolderhttp://www.blogger.com/profile/03456015475456641883noreply@blogger.com0tag:blogger.com,1999:blog-2842325916560759184.post-47414131597243164542009-03-19T09:35:00.000-07:002009-03-19T09:35:58.424-07:00The First Steps Series-How Much House Can I Really Afford?As we have been discussing, there are many advantages to buying a home versus renting one. Use this <a href="http://www.freddiemac.com/corporate/buyown/english/calcs_tools/">Rent vs. Buy Calculator</a> to help you to compare the costs of renting to the costs of buying a home. But once you've punched the numbers and decide if buying is right for you, HOW MUCH HOUSE CAN YOU AFFORD?! To figure out the amount you can afford view the <a href="http://www.realtor.com/home-finance/financial-calculators/home-affordability-calculator.aspx">Affordability <span class="blsp-spelling-corrected" id="SPELLING_ERROR_0">Calculator</span> on Realtor.com</a>. Your income, savings, and monthly expenses play an important role in determining just how large a mortgage you can afford.<br /><br />In many cases, the amount of money you'll spend paying rent can be about the same as or less than the amount a you'll spend on a mortgage. With the tax benefit for homeowners, the savings can be significant.<br /><br />Ginnie Mae has a Buy vs. Rent chart that shows a cost comparison for a renter and a homeowner over a seven year period. In their <a href="http://www.ginniemae.gov/rent_vs_buy/rent_vs_buy.asp?section=YPTH">example</a>:<br />The renter starts out paying $800 per month with annual increases of 5%. The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000. After 6 years, the <span class="blsp-spelling-error" id="SPELLING_ERROR_1">homeowner's</span> payment is lower than the renter's monthly payment. With the tax savings of <span class="blsp-spelling-error" id="SPELLING_ERROR_2">homeownership</span>, the <span class="blsp-spelling-error" id="SPELLING_ERROR_3">homeowner's</span> payment is less than the rental payment after 3 years.<br /><br />Keep in mind that when you decide to become a homeowner, you accept all responsibility for paying for the expenses associated with ownership. Be aware that there are many additional costs to your monthly mortgage payment and you should always include these in your budget estimates:<br /><br />Here is a list of those extra expenses you'll need to consider:<br /><strong>Property Taxes and Special Assessments<br />Home/Hazard Insurance<br />Utilities<br />Maintenance<br />Home Owner Association (<span class="blsp-spelling-error" id="SPELLING_ERROR_4">HOA</span>) Fee:</strong> Doesn't apply to all purchases. It pays for trash and snow removal and maintenance of common grounds if applicable. These are common for condos, <span class="blsp-spelling-error" id="SPELLING_ERROR_5">townhomes</span>, new development communities, gated communities.<br /><strong>Membership Fee:</strong> It may pay for recreational facilities (use of a pool or gym) and other services (cable TV).<br /><br />Once you are able to determine how much house is comfortable for you, do a trial run. Save the amount of <span class="blsp-spelling-corrected" id="SPELLING_ERROR_6">your</span> mortgage for at least six months. First, figure out how much buying a home in your estimated price range will cost you each month. DO NOT forget to include an estimate of the extra expenses pointed out earlier. Subtract your current rent (monthly) from the total figure you estimated above. Then on the first day of each month, deposit the difference between your rent and the estimated costs of <span class="blsp-spelling-error" id="SPELLING_ERROR_7">homeownership</span>. If you can do this every month for six months without being late, feeling stressed, or having to compromise your current lifestyle too much, then you may be ready to take on the financial <span class="blsp-spelling-corrected" id="SPELLING_ERROR_8">burden</span> of owning a home!!<br /><br />Happy House Hunting!Andrea Bolderhttp://www.blogger.com/profile/03456015475456641883noreply@blogger.com0tag:blogger.com,1999:blog-2842325916560759184.post-34684027559889391502009-03-17T12:06:00.000-07:002009-03-17T12:47:37.593-07:00Tuesday News<a href="http://money.cnn.com/2009/03/17/real_estate/housing_starts/index.htm?postversion=2009031709">Government report shows construction of new homes jumped 22% in February</a><br /><br />Is the housing market heating back up??<br /><br />Last week, there was an indication that the housing market may be heating back up. New mortgage applications for home purchases and refinances suddenly surged as they hadn't in the last eight months. Applications for FHA loans to buy houses were up by 10.4 percent. And overall home purchase applications jumped by 7.1 percent. Meanwhile mortgage interest rates dropped to their second lowest level in nearly two decades, according to the Mortgage Bankers Association. Thirty year fixed rates averaged 4.96 percent and fifteen year rated dropped to just 4.5 percent.<br />New applications for financing to purchase homes point to rising purchase contracts and closed sales in the months ahead. They also suggest that prices have hit a level in many markets that is attracting once-hesitant buyers off the sidelines.<br />There's still another factor that's likely at work here as well: Congress's recent improvements to the home purchase tax credit -- pushing it to $8,000 from $7,500 and making it non-repayable.<br />A rise in home purchase applications does NOT suggest we've turned the corner in the cycle or have solved the multiple challenges facing markets around the country -- high foreclosure levels, continuing domination in some areas of <span class="blsp-spelling-error" id="SPELLING_ERROR_0">REO</span> and short sales, and continuing increases in the unemployment rate.<br />Even amid these problems, however, there are some hints of possible improvements ahead. More than half of the nation's foreclosures in 2008, researchers found, were concentrated in just 35 counties in 12 states. You can guess where: California, <span class="blsp-spelling-error" id="SPELLING_ERROR_1">Las</span> Vegas, Phoenix and Florida.<br />But the really eye-opening finding: In more than 650 other counties, representing one fifth of all markets in the U.S., foreclosure numbers have actually declined since 2006.<br />Foreclosures are horrible no matter where they occur. But the fact is: Huge portions of the United States have NOT been seeing record foreclosures, short sales or even serious property value declines. They're doing better.Andrea Bolderhttp://www.blogger.com/profile/03456015475456641883noreply@blogger.com0tag:blogger.com,1999:blog-2842325916560759184.post-73690294862503642742009-03-13T14:09:00.000-07:002009-03-13T14:10:47.087-07:00The First Steps Series-Making the Decision to Buy or Rent<div align="justify">Today we are going to talk about making the decision to Rent or Buy and highlight some of the Advantages and Disadvantages of buying a home.</div><div align="justify"><br />One of the first decisions that you need to make if you are considering buying a piece of property, is whether buying a house instead of renting one is the right path for you. Many people assume it's always an advantage to purchase a home, and for most, it is. Buying real estate is one of the smartest financial decisions most people will ever make. However there are some serious factors you must take into consideration first to see how your situation will be affected by choosing to rent or buy. You have to ask yourself: Do I know what I want? Do I have the money? Are my finances in order?</div><br /><div align="justify"></div><div align="justify">I have outlined some of the most important advantages and disadvantages of Renting and Buying below.<br /></div><br /><div align="justify"><strong>Advantages of Renting:</strong><br /></div><ol><li><div align="justify">Renting does not require a large amount of cash up-front in terms of a deposit or <span class="blsp-spelling-error" id="SPELLING_ERROR_0">downpayment</span>. (we'll cover the costs of purchasing a home in a later Series)</div></li><li><div align="justify">You know exactly how much rent you will be paying each month and it is constant throughout the life of the lease </div></li><li><div align="justify">There is little or no responsibility for maintenance</div></li><li><div align="justify"><span class="blsp-spelling-corrected" id="SPELLING_ERROR_1">It's</span> easier to move-when your lease is up, you just pack up and move on</div></li><li><div align="justify">Even though you are not gaining equity, you're not losing it either</div></li></ol><div align="justify"><strong>Disadvantages of Renting:</strong> </div><ol><li><div align="justify">You will never gain equity</div></li><li><div align="justify">No tax <span class="blsp-spelling-corrected" id="SPELLING_ERROR_2">advantages</span> (those go to the owner of the property!)</div></li><li><div align="justify">Many times you have limited or no ability to personalize your living space. </div></li><li><div align="justify">You have no control over increases in rent</div></li><li><div align="justify">There is always a possibility of eviction (<span class="blsp-spelling-corrected" id="SPELLING_ERROR_3">particularly</span> if the owner decides to sell)</div></li></ol><p align="justify"><strong>Advantages of Buying:</strong><br /></p><ol><li><div align="justify"><strong></strong>Property builds equity over time. </div></li><li><div align="justify">Tax benefits</div></li><li><div align="justify">Sense of community, stability, and security</div></li><li><div align="justify">Free to change decor and landscaping</div></li><li><div align="justify">Not dependent on landlord to maintain property</div></li></ol><p align="justify"><strong>Disadvantages of Buying:</strong> </p><ol><li><div align="justify">You are responsible for maintenance of your property </div></li><li><div align="justify">Must have the money for a down payment and closing costs-larger initial investment</div></li><li><div align="justify">Your responsible for property taxes</div></li><li><div align="justify">There's always the possibility of foreclosure and loss of equity</div></li><li><div align="justify">If you want to move, you generally must sell your home<br /></div></li></ol><p align="justify"><strong>Before buying, you need to consider all the costs of <span class="blsp-spelling-error" id="SPELLING_ERROR_4">homeownership</span></strong></p><p align="justify">On average you need to add another 40-45% to your monthly mortgage in housing costs. You must consider <span class="blsp-spelling-corrected" id="SPELLING_ERROR_5">maintenance</span>, utilities, insurance, property taxes, etc...You also need to consider any immediate costs, which include home improvements (painting, landscaping, fixing cabinets, changing toilets, buying furniture, etc). </p><p align="justify">Happy House Hunting!</p><p align="justify"></p>Andrea Bolderhttp://www.blogger.com/profile/03456015475456641883noreply@blogger.com1tag:blogger.com,1999:blog-2842325916560759184.post-41936177507124722382009-03-11T21:21:00.000-07:002009-03-11T21:21:33.900-07:00What to Do in a Depressed Real Estate Market?<div align="justify">With the economy and real estate market in the pits, many people are wondering, is it the right time to buy a house? Are you confused about what to do in a depressed economy when it comes to purchasing a home? Well you're not the only one! Every where you turn financial experts are providing advice about what to do in the current real estate market. And what's frustrating is that the advice tends to differ depending on whom you talk to or what publication you are reading! Some experts predict recovery is on the horizon, maybe even before the end of 2009, while others hold little hope for an immediate recovery, giving another 5-10 years before things turn around. </div><div align="justify">Well what are we supposed to believe? What's clear to everyone is that the economy is the poorest it has been in decades due to the sub-prime mortgage meltdown - which involves high default rates on the sub-prime and other adjustable rate mortgages, the negative amortization teaser loans resetting - which is causing more homes to be available on the market, home-builders inflating the value of homes, and homebuyers abusing the refinancing system and using their homes as ATMs.<br /></div><br /><div align="justify">So is it the right time to buy? </div><div align="justify">The inventory is huge, flooded with foreclosures, REOs (bank owned properties) and short sales. Many buyers who have adjustable rate mortgages -also known as ARMs, or used 100% financing as a vehicle to purchase a home see their interest rates adjusting and some are beginning to lose their homes with many more to lose theirs in the future. With so many homes on the market, it's a buyers market and sellers (both banks and homeowners) are forced to drastically reduce prices if they want to sell their property. They are fiercely competing against one another for a small pool of qualified home buyers, which allows the potential purchaser to negotiate better pricing for the home. Alot of sellers are even throwing in incentives, to "sweeten the deal" in the hopes they'll be able to get rid of their properties sooner.</div><div align="justify">Also, with interest rates at near historic lows, homebuyers have the opportunity to pay less interest on their next home purchase, which can be a significant reduction in cost. If you wait to buy a home there is a possibility interest rates will go up. </div><div align="justify">People in the best position to buy have researched the current housing market, the areas they want to live in, have good credit and have sufficient savings in the bank.</div><br /><div align="justify"></div><div align="justify">In any market, especially today's market, real estate should be looked at as a long term investment. Property values are not going to increase like we've seen in the past few years. Be realistic. Really consider all of your options. Take your time and find a home that fits your needs and your pocketbook. Compare prices of other homes in the neighborhood, evaluate the amenities, your commute to and from work, the school systems, and other features. Have your credit in tip-top shape, get pre-qualified with a reputable lender, and have cash available in the bank for a down-payment, closing costs and any immediate improvements you may need to make to your new home. Be prepared for the REOs, short sales and foreclosures that will be available. As good deals come on the market you may need to make an offer immediately to ensure you get the property you want. Never think you can wait to make an offer...Good deals usually don't last! Find a local real estate agent you trust and one you feel can do the job of negotiating the best deal for you and your family. Never offer the asking price unless you know for sure there are other offers on the table and this is the house you just have to have. In most situations, I would suggest making an offer under the list price to and see what kind of deal you can get.</div><div align="justify"></div><br /><div align="justify">Regardless of the market conditions, you must be educated and prepared to make a move when the time is right for YOU!</div><br /><div align="justify">Happy House Hunting</div>Andrea Bolderhttp://www.blogger.com/profile/03456015475456641883noreply@blogger.com0tag:blogger.com,1999:blog-2842325916560759184.post-75200309992891072012009-03-10T15:00:00.000-07:002009-03-10T15:01:07.933-07:00Property TransferRecently questions about Property Transfer were asked on The Property Source group discussion board on <a href="http://www.facebook.com/home.php#/group.php?gid=54912929086"><span class="blsp-spelling-error" id="SPELLING_ERROR_0">Facebook</span></a>. Just in case some of you are the few you don't frequent <span class="blsp-spelling-error" id="SPELLING_ERROR_1">Facebook</span>, I am <span class="blsp-spelling-error" id="SPELLING_ERROR_2">reposting</span> the Q&A here.<br /><br /><strong>Questions:</strong><br /><br /><em>I'm interested in transferring property into my company name. I don't have a complete understanding on how that's supposed to work. So here we are, looking for a little direction in this area. The title needs to be transferred into the company’s name. Would a Warranty deed be used for the transfer the property? Or would a quit claim deed be used? Once the transfer is complete, the company will now be listed as the grantee. Right? Would the property taxes, now be sent to the company? Would I be able to deduct any and all repair or upgrade cost as business expenses?Would I still be able to receive the various tax incentives for home ownership or would that be negated due to the home being listed under the company?If not would the company receive these benefits?How many properties can I transfer under the company name?No rush on this, great idea for this board. Always be selling. <span class="blsp-spelling-error" id="SPELLING_ERROR_3">Korrey</span></em><br /><p><strong>Answers:<br /></strong><br />The first thing I’d recommend is consulting a real estate lawyer as well as a tax adviser. They’ll know the laws and can ensure everything is done properly and that title is actually being transferred.<br /><br />Here are some suggestions though.<br /><br /><strong>Quit Claim Deed</strong>-a deed that conveys any interest the <span class="blsp-spelling-error" id="SPELLING_ERROR_4">grantor</span> may have in the property at the time of the execution of the deed, without any warranty of title or interest.<br /><br /><strong>Warranty Deed</strong>-a deed that expressly warrants that the <span class="blsp-spelling-error" id="SPELLING_ERROR_5">grantor</span> has good title; the <span class="blsp-spelling-error" id="SPELLING_ERROR_6">grantor</span> thus agrees to defend the premises against the lawful claims of third persons. The person who transfers the property is called the ‘<span class="blsp-spelling-error" id="SPELLING_ERROR_7">Grantor</span>’. The person/entity the property is transferred to is called the ‘Grantee’.<br /><br />Though some say a quit claim is sufficient, you will probably want to do a warranty deed (vs. a quit claim deed) which will need to be prepared in the company’s name, filed and recorded in the appropriate office located in the jurisdiction in which the property(s) is located. This is usually at the county recorders office. The deed then must be signed by the person or entity transferring the property and will require notarization. You will be named the <span class="blsp-spelling-error" id="SPELLING_ERROR_8">grantor</span>, the company named the grantee.<br /><br /><em>Also, do you have a mortgage on your property?</em> If the loan is not paid in full prior to or at the time of transfer, the deed will only transfer subject to the mortgage. You will need to look at your loan documents to see what conditions, restrictions and limitations it may have on your ability to <span class="blsp-spelling-corrected" id="SPELLING_ERROR_9">transfer</span> the property without having <span class="blsp-spelling-error" id="SPELLING_ERROR_10">to</span> pay the loan off. Almost all mortgages have “due on sale clauses”. Technically moving the property to an <span class="blsp-spelling-error" id="SPELLING_ERROR_11">LLC</span>, corporation, or limited partnership is considered a “sale.” You will need to negotiate with your lender to attempt to transfer the loan and the mortgage to the <span class="blsp-spelling-error" id="SPELLING_ERROR_12">LLC</span>. Sometimes they let this slide if you are the owner of the property and the sole owner of the company, but if not you made be made to refinance or <span class="blsp-spelling-corrected" id="SPELLING_ERROR_13">acquire</span> a new loan. Another thing to consider are the potential taxes you may have to pay. Any profit made on the “sale” of a house is subject to being taxed. Transfer can also trigger a property tax reassessment at the <span class="blsp-spelling-corrected" id="SPELLING_ERROR_14">current</span> market value. Consult your tax guy about this.<br /><br />Now some people just make the title change and don’t tell the bank but there is a possibility that doing so may come back to bite you. The mortgage company will eventually figure out title to the property has been changed because the tax notices are now in the name of your company. You’ll also want to make sure you have your insurance in order. You’ll need to make sure you’re property is insured under the company name. In terms of deductions for any and all repairs/improvement costs as business expenses, and various tax incentives I would advice you to consult a tax adviser. They can provide the details of what you can deduct and how much. One thing to keep in mind that and incentive programs you look into as a personal homebuyer can be looked into under the company as well. The programs will probably have specific guidelines for companies applying for their incentives.</p><p>I believe you can transfer as many properties as you want into the company name. There is a such thing as a Series LLC's which are generally of interest to individuals who have several large assets (such as multiple properties) for which they desire to maintain separate liability protection. I do not think this is allowed in California though.</p><p>Hope this helps...<br /></p>Andrea Bolderhttp://www.blogger.com/profile/03456015475456641883noreply@blogger.com0tag:blogger.com,1999:blog-2842325916560759184.post-33480363829654936962009-03-09T05:35:00.000-07:002009-03-09T11:21:45.923-07:00Homebuyer Incentives<div align="justify">In an earlier post (The First Steps-Plan Ahead-March 5, 2009) I mentioned first time <span class="blsp-spelling-error" id="SPELLING_ERROR_0">homebuyer</span> incentives. I was asked a few questions about how these work and want to answer those questions.</div><br /><div align="justify"></div><p align="justify"><strong>Question: So what are <span class="blsp-spelling-error" id="SPELLING_ERROR_1">Homebuyer</span> Incentives?</strong></p><p align="justify"><span class="blsp-spelling-error" id="SPELLING_ERROR_2">Homebuyer</span> incentives come in many shapes and forms. Incentives that assist potential <span class="blsp-spelling-error" id="SPELLING_ERROR_3">homebuyers</span> can be provided by city, state and federal agencies, the property developer, the lender or even the seller of the home in the form of discounts, credits or renovation allowances, just to name a few. </p><div align="justify">Many times these agencies offer seminars or classes where you pay a small fee to learn about the available programs. They outline the application process, guidelines and requirements needed to qualify for the incentive. If you meet the program requirements, you can utilize the applicable incentives toward the purchase of a new or existing home.</div><br /><div align="justify"></div><div align="justify"><strong>Question: So once you get qualified for the program, is there an expiration? Do you have to purchase a home within a year or certain time period?</strong></div><div align="justify"></div><br /><div align="justify">Well that depends on the program. Programs vary as do the requirements and qualifying guidelines. There can be time restrictions or programs based on availability. For example a <a href="http://www.federalhousingtaxcredit.com/">Federal Housing Tax credit </a>of up to $8,000 is now available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. </div><br /><div align="justify"><strong>Question: Are those incentive programs only good for those particular areas or can the classes be transferred to another program/area?</strong></div><br /><div align="justify"></div><div align="justify">Most incentive programs have very specific areas in which you must purchase your home, and though the transfer of incentives to other areas is limited by the guidelines of each program, many time you are able to use one program in <span class="blsp-spelling-corrected" id="SPELLING_ERROR_4">conjunction</span> with other programs you qualify for. </div><br /><div align="justify"></div><div align="justify">If you are a law enforcement officer, teacher or firefighters/emergency medical technician you can take advantage of <a href="http://www.hud.gov/offices/hsg/sfh/reo/goodn/gnndabot.cfm"><span class="blsp-spelling-error" id="SPELLING_ERROR_5">HUD's</span> Good Neighbor Next Door Sales Program</a>. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. Now there is a catch! In return you must commit to live in the property for 36 months as your sole residence and many of the homes available are in communities that the city is trying to redevelop or revitalize. If you don't like any of the homes in the revitalization areas then you can't apply the incentive to non-HUD homes! </div><br /><div align="justify"></div><div align="justify">In another example, <a href="http://www.lbhdc.org/homebuyprogram.html">The Long Beach Housing Development Company</a>, offers a second mortgage program for low to moderate-income <span class="blsp-spelling-error" id="SPELLING_ERROR_6">homebuyers</span>, but the homes for sale are in 4 distinct redevelopment areas. You <em><strong>are</strong></em> able to use <span class="blsp-spelling-error" id="SPELLING_ERROR_7">CalHFA</span> low interest rate programs with the <span class="blsp-spelling-error" id="SPELLING_ERROR_8">LBHDC</span> Home Buying Programs. </div><div align="justify"></div><br /><div align="justify">Every month the <span class="blsp-spelling-error" id="SPELLING_ERROR_9">LBHDC</span> provides <a id="greyheader" href="http://www.lbhdc.org/homeowneredu.html">Home Ownership Education</a> seminars that will provide information on all the first-time home buying programs in the City of Long Beach. These seminars also educate you on how to select a home, find a realtor, choose a lender, and understand the financial issues involved with securing an affordable mortgage. The seminar is <strong>required</strong> in order to take advantage of the <span class="blsp-spelling-error" id="SPELLING_ERROR_10">homebuyer</span> incentives. It's worth the nominal fee (~$25) to learn about how these programs can be used by you to get into your first home!</div><br /><p align="justify">There are many first time <span class="blsp-spelling-error" id="SPELLING_ERROR_11">homebuyer</span> incentives out there. It just takes a little time and effort to learn about and research which ones may be right for you. I have provided a list of key agencies you can research below.(I'll also list these in the sidebar under Reference <span class="blsp-spelling-corrected" id="SPELLING_ERROR_12">Websites</span> for Young <span class="blsp-spelling-error" id="SPELLING_ERROR_13">Homebuyers</span>) Find out about the available programs and what <span class="blsp-spelling-corrected" id="SPELLING_ERROR_14">steps</span> need to be taken to <span class="blsp-spelling-corrected" id="SPELLING_ERROR_15">qualify</span> for them. Understand the rules and <span class="blsp-spelling-corrected" id="SPELLING_ERROR_16">guidelines</span>...some programs require repayment of the initial incentive amount or a portion of the profits from the sell of the home. </p><p align="justify">California Housing Finance Agency (<a href="http://www.calhfa.ca.gov/homebuyer/"><span class="blsp-spelling-error" id="SPELLING_ERROR_17">CalHFA</span></a>)-<br />Offers low interest rate first mortgage programs and a variety of down payment assistance programs to eligible first-time <span class="blsp-spelling-error" id="SPELLING_ERROR_18">homebuyers</span>. <span class="blsp-spelling-error" id="SPELLING_ERROR_19">CalHFA</span> programs can be used with <span class="blsp-spelling-error" id="SPELLING_ERROR_20">LBHDC</span> Home Buying Programs. </p><ul><li><div align="justify">U.S. Department of Housing and Urban Development (<a href="http://www.hud.gov/">HUD</a>)</div></li><li><div align="justify">The Federal Housing Administration (<a href="http://www.hud.gov/buying/loans.cfm">FHA)</a> – which is part of HUD – insures the loan, so your lender can offer you a better deal.</div></li><li><div align="justify"><a href="http://www.homeloans.va.gov/" target="_blank">Veteran’s Administration (VA) Home Loan Program</a>-Low interest Home Loans for <span class="blsp-spelling-corrected" id="SPELLING_ERROR_21">eligible</span> Veterans.</div></li><li><div align="justify"><a href="http://www.lacdc.org/CDCWebsite/HDP/linkit.aspx?id=1220">Housing Development and Preservation (Mortgage Credit Certificate)</a></div></li></ul><p align="justify">Hope this answers some of your questions. Feel free to post comments or additional questions if anything is unclear!<br /></p>Andrea Bolderhttp://www.blogger.com/profile/03456015475456641883noreply@blogger.com0tag:blogger.com,1999:blog-2842325916560759184.post-36837343265124534092009-03-06T17:06:00.000-08:002009-03-06T17:06:07.026-08:00Feature Friday-Yogurtland<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhPfoV9Xoj5VTBXGvTEa13gqVWZceJD2bXeIJrKxm0cyXxvm9CV1F8SENvmPiKiKpD-XVoeCL62_4tC2-Y5VgQANbWBOaXzISBFjHncJrOVIp5tO6495j19e0dqbxPv0nnCgMtS4ZpNJmly/s1600-h/YO1JACARK292ZCAH2JJMBCAZAL6N8CAIV7BU8CARZ3GB2CA8OVCKFCA2I2HYBCALF9S0WCA08HKLXCAJSPFUVCAD6Z0SOCAN9K0CXCA5DUJSHCAG7U212CAYRV10CCAHT9J61CA091TPPCALYE99XCAPGF6TR.jpg"><img id="BLOGGER_PHOTO_ID_5310245112431448498" style="FLOAT: left; MARGIN: 0px 10px 10px 0px; WIDTH: 124px; CURSOR: hand; HEIGHT: 89px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhPfoV9Xoj5VTBXGvTEa13gqVWZceJD2bXeIJrKxm0cyXxvm9CV1F8SENvmPiKiKpD-XVoeCL62_4tC2-Y5VgQANbWBOaXzISBFjHncJrOVIp5tO6495j19e0dqbxPv0nnCgMtS4ZpNJmly/s320/YO1JACARK292ZCAH2JJMBCAZAL6N8CAIV7BU8CARZ3GB2CA8OVCKFCA2I2HYBCALF9S0WCA08HKLXCAJSPFUVCAD6Z0SOCAN9K0CXCA5DUJSHCAG7U212CAYRV10CCAHT9J61CA091TPPCALYE99XCAPGF6TR.jpg" border="0" /></a><br /><br /><div>Today I met with a couple of my girlfriends for a rare outing since I had Baby Joe . We decided to go to 2nd Street in Belmont Shore, a beach town region of Long Beach. After much debate we ended up at BJs Pizzaria, but that is not why I am writing this post. It's the yummy aftermath that has put a smile on my face and in my tummy!</div><div></div><br /><div>During our lunch one of the ladies suggested we have an after lunch treat at <a href="http://www.yogurt-land.com/">Yogurtland</a>. I am not a huge fan of frozen yogurt. I think I've been to Golden Spoon a handful of times and never had any interest in the much raved about Pinkberry. I prefer good ole creamy ice cream. Mint Chocolate Chip and Pralines and Cream please! </div><br /><div></div><div>As we entered Yogurtland the first thing that struck me was the cute, trendy decor and the no cameras icon on the front door. HUH!!</div><br /><div>It's a self-serve froyo place with 16 distinct flavors and 30+ toppings to choose from (almost too many choices). Besides the traditional Vanilla and Strawberry, there was Cheesecake, Taro, Mango Tart, and Green Tea. After staring at the many flavors, I just had to make a decision, so I chose a few. Cheesecake, a mix of Irish Mint and Chocolate, Green Tea and Bananas Foster. What can I say!! </div><br /><div></div><div>You pay by the ounce, 0.30 cents, and it was much cheaper than Cold Stone Creamery or even Baskin Robbins. It was surprisingly creaming and rich, not icy or bland. I was in love!</div><div></div><br /><div>So the next time you are in the mood for a little sugar on the tongue and you want a cold, creamy treat that is not high in calories, try Yogurtland. It made me believe in frozen yogurt again!!</div>Andrea Bolderhttp://www.blogger.com/profile/03456015475456641883noreply@blogger.com1tag:blogger.com,1999:blog-2842325916560759184.post-74503537006220527112009-03-05T17:35:00.000-08:002009-03-05T18:12:36.623-08:00Questions and AnswersA suggestion was made to create a section where as readers you would be able to keep track of your questions and my responses. Since alot of people have the same questions, this will be a quick reference tool that will minimize the need to search through archived post. I will continually update the most common questions along with my responses on the blog's sidebar.<br /><br />You can click on FAQs-Frequently asked Questions in the Labels Section or Questions and Answers under the Blog Archive section.Andrea Bolderhttp://www.blogger.com/profile/03456015475456641883noreply@blogger.com0tag:blogger.com,1999:blog-2842325916560759184.post-26167434991787721732009-03-05T14:07:00.000-08:002009-03-05T17:03:27.336-08:00The First Steps Series-Plan AheadIn college, my friends and I did not spend a whole lot of time thinking about buying our first home. We were preoccupied with academics, athletics, parties, dating and future career possibilities. However, with my parents being in real estate, I learned young, that there are a number of good reasons to start learning early about what it takes to buy a home and the responsibilities of homeownership.<br /><br />Here are five recommendations for young people who want to position themselves for homeownership:<br /><br />1. Establish good credit habits and a favorable credit history. The higher your <a href="http://en.wikipedia.org/wiki/Fico_score">FICO score</a>, the lower the interest rate you will be offered on a home loan. Get a credit card and use it responsibly. Make sure you make your payments on time every month. Keep track of your credit report. Under a new Federal law, you have the right to receive a free copy of your credit report once every 12 months from each of the three nationwide consumer reporting companies. To request your free annual report under that law, you must go to <a title="www.annualcreditreport.com" onclick="javascript:exitvariable=" href="http://www.annualcreditreport.com/" target="_blank" rel="nofollow">http://www.annualcreditreport.com/</a>.<br />If you're already struggling with credit card debt or have large student loans, take a free workshop from the non-profit <a href="http://www.cccsatl.org/">Consumer Credit Counseling Service</a>.<br /><br />2. Start saving for a down payment and <a href="http://en.wikipedia.org/wiki/Closing_costs">closing costs</a> early. Open up a savings account and set up automatic deposits with a bank that offers high rates with no fees and no minimums, such as <a href="http://home.ingdirect.com/">ING Direct</a>. In years past, it was fairly easy to purchase a home without having a significant amount of money saved. With the current mortgage crisis, lenders have become more strict and requiring 5, 10 and even 20% down payments. The days of no-money down financing are no more. Saving early can be beneficial because you'll get the advantage of compounding interest and have a longer period of time to grow your investments.<br /><br />3. Educate yourself on the home buying process. Read, Read, Read! There a thousands of books out there about buying a home. Make a financial plan for yourself. You can learn a lot about real estate, budgeting and credit on the Internet. One of my favorites is <a href="http://www.realtor.com/basics/index.asp">REALTOR.com® </a>.<br /><br />4. Research the areas you'd like to live. Do you want to stay in the city you grew up in or do you see yourself living in another city or even another state. Know if you can afford the areas you like. Also find out if those towns offer first time homebuyer incentives?<br /><br />5. Do you know anyone in real estate that can provide reliable information about the cost of homes in the areas you want to live? Parents, cousins, friends? Don't be afraid to ask questions, you might just get the answers you're looking for!Andrea Bolderhttp://www.blogger.com/profile/03456015475456641883noreply@blogger.com0tag:blogger.com,1999:blog-2842325916560759184.post-1369201147939702472009-03-04T05:33:00.000-08:002009-03-04T06:49:06.889-08:00The First Steps Series<span style="color:#339999;">Over the next few weeks I will be doing a "First Steps Series" that will outline and detail in depth what you need to do to prepare yourself for home ownership. I will provide checklists, links to useful resources and define many of the real estate terms along the way.</span><br /><span style="color:#339999;"></span><br /><span style="color:#339999;">Enjoy your the path to Ownership...</span>Andrea Bolderhttp://www.blogger.com/profile/03456015475456641883noreply@blogger.com1tag:blogger.com,1999:blog-2842325916560759184.post-73628287821071374212009-03-04T03:44:00.000-08:002009-03-04T06:01:53.391-08:00Welcome to The Property Source<div align="justify">As young adults, there are many important decisions that you must make everyday that impact how successful your future will be. On this blog I will write about the benefits-<em>and challenges</em>-of home ownership, how to achieve your real estate goals, while mixing in topics on home improvement and design, city living, and tips for living green, just to name a few.<br /><br />Though home ownership should not be taken lightly, as it is a huge step, it is not as far fetched as it may seem. Owning a home is not only a great investment, but a great achievement and I believe everyone can and should own their own piece (or pieces) of property.<br /><br />This blog will be a source of general information for young adults who have a dream of owning real estate. My hope is that this blog will be a sharing experience and I encourage your comments, thoughts, and questions. Now by no means am I the know-all, end-all when it comes to real estate (there is alot I am still learning as well) and I encourage you to understand fully any advice you get, including from this blog, before making any kind of major financial decision. Everyone's goals, circumstances and financial well-being are different, so always evaluate how the application of any advice or information will affect you first, but if I can help you, in even a small way, get one step closer to home ownership, then this blog will be well worth the time and effort!<br /><br /><br /><a title="Nelson Mandela" href="http://en.wikipedia.org/wiki/Nelson_Mandela">Nelson Mandela</a> once said "I learned that courage was not the absence of fear, but the triumph over it. The brave man is not he who does not feel afraid, but he who conquers that fear."- Don't be afraid to go after things that seem far-reaching, but have the courage to gain the knowledge that will help you change your circumstances and find happiness in obtaining your goals!!<br /><br />Happy House Hunting!!</div>Andrea Bolderhttp://www.blogger.com/profile/03456015475456641883noreply@blogger.com0