Posts Tagged ‘18045’

Ten Incredibly easy steps for buying that first home.

Posted on: April 20th, 2016 by admin No Comments

realty-1151243__180Really you don’t have to be afraid. Like they say “It isn’t rocket science”. If you answer yes to any of these questions, its time to go out an get your piece of the American Dream.

  1. Are you throwing rent money out the window every month?
  2. Are you turning green with envy every time one of your buddies talks about their palace in the burbs or the city for that matter?
  3. Have you been to at least one seminar on how not to invest your money in the stock market?
  4. Have you looked at your income tax return and said to yourself ” How come I don’t have any more write offs?
  5. And finally, has your spouse threaten to leave you unless you find a way out of that dump you live in?

Okay, I’m known for being a wise guy. But seriously isn’t it time to get out and get your own? It really isn’t that hard to get started.

  1. Go find a real estate agent that you like and trust. Talk to your friends about who they used. There is nothing better than a referral. If you don’t have any friends, look around you and go on the internet and see who has a lot of listings. These agents are probably very active in the market. There are agents who specialize as buyers agents but they are not readily identifiable as the listing agents. Be sure to go to the agents websites and look for endorsements from past clients. That will tell you how good they are, regardless if they are a listing or selling specialist.
  2. Once you pick the agent, go get pre-qualified for a mortgage. What does that mean? It means a possible lender will check your credit, your basic income and give you an idea of what you can borrow. Your real estate agent will give you some recommendations on who to go to. There is no charge for this service. But when you find a house, you will have to go through a formal mortgage application.
  3. Go find houses on line and screen them for what you want. Stick to the main websites;  The Multiple Listing Service, your agent’s website or Zillow. If you don’t know what Zillow is, believe me you will learn quickly.
  4. Go drive by the houses first. Pictures and video are great but you have to scope out the neighborhood.
  5. Pick some and go look at them with your agent.
  6. Like one, well go ahead scaredy – cat make an offer. The worse that will happen is that the seller will say no, but maybe if you are lucky you can negotiate the price and other conditions. You know, like removal of the Lama Haired rug or replacing the 40 year old furnace. But its like the lottery…. You can’t win if you don’t play.
  7. Everybody agrees? Okay, do your stuff; inspections, mortgage app, title search(the agent will help you with this for another recommendation).
  8. Go to settlement, sign papers.
  9. Get the keys
  10. Move in

Now was that so bad? Okay… Like I said I am a wise guy.  But it really isn’t that bad. Give me a call and we shall venture the journey together. It can be a lot of fun and maybe by this time next year Uncle Sam will send you a big fat check. Who knows?

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Buying a home…or should I stay in the basement?

Posted on: March 23rd, 2016 by admin No Comments

family outside home

 

 

 

 

 

Well I’ve been a member of the National Association of Realtors for over 37 years. I think I have heard almost every way possible way to help new buyers toward their First purchase. This one has to be one of the best and innovative. I’m probably guilty of just being a guy too. Let me know what you think. This is part One.

 

Click here

 

 

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First Time Home Buyers

Posted on: April 27th, 2015 by admin No Comments

Business Handshake I Came across a new program for first time home buyers.  To be considered a first time home buyer, you can’t have owned a home for at least 5 years. The qualifications for the program are as follows.

1. 97% financing available
2. Primary residence only.
3. No PMI required.
4. Up to 6% seller assistance allowed.
5. Can be used in conjunction with other closing cost and down payment assistance programs.
6. Limited credit history may be acceptable.
7. Home ownership counseling is required.
8. $O Origination fee.

Contact me for details:

Salvatore(Sam) Ruta
610-737-2310
salvatoreruta13@gmail.com

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3 programs to help you buy a house if you can’t get a mortgage.

Posted on: May 30th, 2014 by admin

Sold Home For Sale Sign in Front of New HouseI think that there are still challenges in today’s real estate market in either buying or selling a house. Suffice it to say that there are  a lot of folks who owe more than what their home is worth (“underwater”).  There are enough people who have credit problems because of the recession that started in 2007.  Lots of recent  college graduates are strapped with student debt and no jobs and living at home. The economic “recovery” has begun but it is taking forever. And certainly the banks and mortgage companies have not eased up that much on underwriting criteria for buyers. An average credit score to get a conventional mortgage is still almost in the mid 700s. FHA  and VA  are still options but I think we  need to do a better job in spreading the word on those programs and how they work. Plus there are concerns regarding FHA continuous funding. FHA mortgage insurance premium is the highest of any program and never goes away until you finally sell.

I would speculate that with the uncertainty of the economy, that customers are just reluctant to take the risk in owning.

I’ll offer a few alternatives that you might consider in getting  into the housing market. I mean you have to live somewhere. Might as well be a place of your own. Here are three for your consideration.

1. Rent with an option to buy. Probably the most well-known and popular. However it can be the most misunderstood program. An “option” is exactly that. You enter into a  lease to rent a home and you agree with the owner that at some point in time you will, or will not, exercise the option to buy the house at an agreed upon price. You may or may not have put up any money toward that option at the lease signing. You and the landlord may have decided that a portion of the rent goes toward the purchase price or the option. Just remember if you don’t exercise the option, you just remain a tenant and have no ownership rights. Whether you get any money back is determined  by the terms of the option agreement.

2. Lease purchase , land contract or installment contract.  Buyer and Seller enter into an agreement of sale for the purchase of property. The sellers maintain the title to the property during the term of the contract and the buyers have an equitable interest.  A note of caution here to both parties. If the seller has an existing mortgage on the property there may be and probably is a “Due on Sale ” clause in the mortgage documents. This will indicate that if any transfer of equity occurs then the entire loan will become due in full immediately. Depending on the size  of the existing loan, this could cause some major problems for both buyer and seller. Any real estate agent worth their salt will check all recorded documents before proceeding with a proposal. A good real estate attorney needs to be involved for each party. If there is no mortgage , then the owner can act as the bank and transfer title to the buyer . Depending on any down money and credit obligations the equity build up is subject to negotiations at the time of the offer. Again I would recommend a good real estate attorney get involved with any preparation for both buyer and seller.
One nice benefit of this type of transaction is that the buyers can get the tax benefits of home ownership.

3. New program. Just heard about this one. A company buys the home for you and the client enters into an agreement of sale to purchase the property within a certain period of time, i.e 5 years. You put up a down payment of 5 or 10% and pay a 3% admin fee to the company at the time of occupancy. You get the house and its yours to live in as a renter at an agreed upon monthly rent and purchase price. The big difference between this and the rent with option is if you do not get a mortgage by the end of the term you get your down payment back. They keep the 3%. You also agree to a 2-3 % annual rent increase during the term. Again this program is for people who have not been able to qualify for a normal mortgage because of unusual catastrophic circumstances.  Lost a job, unusually high medical bills, and then lost a home through foreclosure or just had some hard times and are trying to work yourself back.  That’s why you agree to a 5+ term. And of course if you can a mortgage sooner, there is no prepayment penalty. There are some additional features. Give me a call and we can discuss some additional details.

A  few “options” to think about. Just leave me a comment. Contact me via Facebook, Linkedin or Twitter or the old fashion ways of email, salvatoreruta13@gmail.com or cell phone 6107372310

 

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And the question is?

Posted on: May 16th, 2014 by admin

MP900390083[1]Haven’t played Jeopardy in a while or watched it on TV. But I always thought that the premise was a good one. Give someone the answer and see if they can come up with the right question.  It occurred to me that I am usually walking around with what I think are  all the right answers to all kinds of questions. I guess  I might now recognize that I am somewhat pretentious in my conclusion.  I guess I need your help. How about I give you some answers and you give me what you think are the right questions. Hopefully, I can learn something with you and become a better agent.

You know, years ago when I first got into the Real Estate business, I had a Broker who told me “Sam, you don’t sell real estate, you solve people’s problems”. That’s stuck with me and I think I have done a pretty good job in asking the right questions to solve those problems. But I think its time to get the customer’s take on this and get you to ask some questions. Anyway, lets see where we go with this and work together. I’ll give you the answer. You let me know what the questions should be. I’ll look at your questions and post them later to get some other folks to chime in if they think you are right wron.  Let me give you an example. 3.5% down payment  is the answer. The question might be,” What is an FHA mortgage ? ” Okay, lets give it a try.

1.  Seller Assist is the answer. What is the question? This is the format which I won’t repeat every time. You’ll get the drift.
2. No down payment required
3. 28%/36%
4. Buyer’s Agent
5. Seller’s Agent
6. Multiple Listing Service
7. Escrow
8. Radon Gas
9. Short Sale
10. Transunion, Experian, Equifax
11. Title Insurance
12.Prepaid Items
13. 2 years worth of tax returns
14. A real estate agent
15. Purchase offer

Okay, that’s enough for now. Give it a shot. Either comment below with your questions or email me if you like. The more I think about it there can be several different questions for the answers. In addition here is  a podcast that will explain how one might go about purchasing a multi family home where you can  live in and collect rent to help pay for your mortgage. If you would like to pursue that let me know. It can be challenging , but it can  be the start of a pretty good investment portfolio.

Contact me at 610-737-2310 or email me at salvatoreruta13@gmail.com. Appreciate it.

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Spring Market brings confidence, I think.

Posted on: April 29th, 2014 by admin

Business HandshakeI’m not one who just takes recent economic news as gospel. But having said that, it does look like we are moving forward with a better housing market. Just take a look at this recent post by Don DeZube of the National Association of Realtors.  Spring Market. You have to admit its pretty positive.  The increases are slight but are running ahead of  last year. The office that I manage is up about 6% over last year. That includes all categories: average sale price, less time on the market, list price of homes, total volume sold and total listing volume.

If there is one problem, it’s that we do not have enough good salable properties on the market. The buyer demand is there and we find ourselves in multiple offer situations. The sellers are happy but the buyers are not. One  cause for the shortage certainly can be attributed in part to  thousands of properties still”underwater”, that is, the owners owe more than the house is worth. Banks are slow in approving possible short sales. Also the Feds have not extended the “debt forgiveness ” provision that allowed sellers to escape the tax consequences of such a sale. There is also some implication  that lenders are holding back millions of stalled foreclosures from the market in the hope that  rising prices will allow the lenders to recoup a larger return of dollars at the “Sheriff Sale”. Who knows…Plus under the new QM rules (Qualified Mortgage), underwriting guidelines are making it  much harder for the average home purchaser to qualify for a mortgage.

Man Scratching HeadLenders are trying to address the above issues by loosing up certain underwriting criteria. Credit scores of 620 and in some cases 550 will get you into a home.  The fact that mortgage applications for all types of  loans are off in some cases 60% from last year might be one reason that lenders are looking for business with less than a truant officer’s mentality. If they don’t lend it, they are not going to make it. Not rocket science.

Here is an explanation to help you better understand the “QM” rules.

One last thing that I have mentioned  several times. If you are in financial trouble, wondering about whether you can stay in your home because you are behind in your mortgage, are considering bankruptcy or in a reverse mortgage and you have any questions, please give me a call. Don’t do anything drastic until you have a chance to talk to a  professional. I can recommend several that can help. Call me at 6107372310. No obligation.

 

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