Posts Tagged ‘5 tips’

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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Coming out of a coma…

Posted on: March 25th, 2013 by admin

I don’t know, I just kind of gave up last fall. When someone told me it was hard to keep a blog up and have a fresh ideas day after day, I knew it was hard but I didn’t think I would go into brain freeze almost permanently. Well I did. I thought to myself I have to become more aggressive  and try to get some reaction from folks who read this stuff. Well that didn’t happen and I thought I might as well get on to bigger and better things.  I really don’t know what that means either.

In the final analysis I guess I had to ask myself the question; was I doing  a blog for you or for me. For me, because at one time I thought I actually enjoyed writing . For you because I hope I could drum up some business while giving you some helpful information.

At this point I’ll just try to write about some things I am passionate about, which is cathartic for me. Maybe you will join in and let me know how you feel, but if you don’t that’s okay too. Because now I don’t feel the pressure to perform for anybody else but me.

So here goes….. Since I last wrote we have had the reelection of the President, the murder of 26 folks, 20 of whom were kids, a Pope resigned, avoided a Fiscal Cliff, did not avoid a Sequester,  watched the rebound of the housing market begin, (which by the way I still don’t trust), QE infinity courtesy of the Fed and saw the Unemployment rate drop to 7.9%

Maybe its the Jesuit training in me but its smoke and mirrors to me. How the heck can we have an almost $17 trillion dollar deficit and growing each day, printing money like its drug to an addict and 1-2% Interest rates set for the next several years, and listen to all of those folks in Washington saying things are getting better. Who is going to pay for all of this insanity? You and me folks and our kids and grandchildren. That’s because the boys and girls in DC can’t get along. The cost of servicing that debt will eventually eclipse the total GDP of the entire country.

One thing is for sure. Regardless of your feeling of the housing market, the freaking mortgage rates are at an all time low. A $100,000 mortgage at 3.5% not including taxes and bank fees will cost  $449 a month. Try renting for that kind of monthly payment.

Foreclosures are down, that’s good. Short sales are up, that stinks. No matter what the banks tell you, they still take months   and I have had more than one buying client walk away. Because foreclosures are down and short sales take a while, we have a decrease in available housing. So Buyers beware, the sellers that are not underwater are going to start raising their prices. It’s already happening. And if Uncle Ben ever stops buying bonds and mortgages,  rates will go through the roof.

Anyway, I feel better, that was a good start. It’s like when I talk to myself in the shower. It’s probably the most creative time for me.
I just need someone to  turn up the temperature of the water.

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5 tips to consider if you are facing a Short Sale

Posted on: January 4th, 2012 by admin No Comments

Jan 1. Its spring time as far as I am concerned. The Spring Real Estate Market, that is. It was 20 degrees when I walked out the door, but I could hear the Robins singing. I know a lot of you are thinking “Can I sell my house? Whats the market like? What’s my house worth?  Time to do a little research. First of all if you want to talk to someone about it, give me a call. Glad to listen first and then I’ll ask you some questions. But here thanks to the National Association of Realtors are some useful tips in getting started in thinking about this Short Sale Business. Also listen to the podcast on this subject if you are considering buying a Short Sale property. Email me with any questions at: samruta@yahoo.com[audio:http://www.rutaramblings.com/wp-content/uploads/2012/01/Foreclosures-and-Short-Sales11.mp3|titles=Foreclosures and Short Sales]

What to do if You’re Facing a Short Sale

 

If you’re thinking of selling your home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale. A short sale is one where the net proceeds from the sale won’t cover your total mortgage obligation and closing costs, and you don’t have other sources of money to cover the deficiency. A short sale is different from a foreclosure, which is when your lender takes title of your home through a lengthy legal process and then sells it.

 

1. Consider loan modification first. If you are thinking of selling your home because of financial difficulties and you anticipate a short sale, first contact your lender to see if it has any programs to help you stay in your home. Your lender may agree to a modification such as: Refinancing your loan at a lower interest rate; providing a different payment plan to help you get caught up; or providing a forbearance period if your situation is temporary. When a loan modification still isn’t enough to relieve your financial problems, a short sale could be your best option if:

  • Your property is worth less than the total mortgage you owe on it.
  • You have a financial hardship, such as a job loss or major medical bills.
  • You have contacted your lender and it is willing to entertain a short sale.

 

2. Hire a qualified team. The first step to a short sale is to hire a qualified real estate professional and a real estate attorney who specialize in short sales. Interview at least three candidates for each and look for prior short-sale experience. Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed a lot of short sales. You want to work with those who demonstrate a thorough working knowledge of the short-sale process and who won’t try to take advantage of your situation or pressure you to do something that isn’t in your best interest. A qualified real estate professional can:

  • Provide you with a comparative market analysis (CMA) or broker price opinion (BPO).
  • Help you set an appropriate listing price for your home, market the home, and get it sold.
  • Put special language in the MLS that indicates your home is a short sale and that lender approval is needed (all MLSs permit, and some now require, that the short-sale status be disclosed to potential buyers).
  • Ease the process of working with your lender or lenders.
  • Negotiate the contract with the buyers.
  • Help you put together the short-sale package to send to your lender (or lenders, if you have more than one mortgage) for approval. You can’t sell your home without your lender and any other lien holders agreeing to the sale and releasing the lien so that the buyers can get clear title.

 

3. Begin gathering documentation before any offers come in. Your lender will give you a list of documents it requires to consider a short sale. The short-sale “package” that accompanies any offer typically must include:

  • A hardship letter detailing your financial situation and why you need the short sale
  • A copy of the purchase contract and listing agreement
  • Proof of your income and assets
  • Copies of your federal income tax returns for the past two years

 

4. Prepare buyers for a lengthy waiting period. Even if you’re well organized and have all the documents in place, be prepared for a long process. Waiting for your lender’s review of the short-sale package can take several weeks to months. Some experts say:

  • If you have only one mortgage, the review can take about two months.
  • With a first and second mortgage with the same lender, the review can take about three months.
  • With two or more mortgages with different lenders, it can take four months or longer.

When the bank does respond, it can approve the short sale, make a counteroffer, or deny the short sale. The last two actions can lengthen the process or put you back at square one. (Your real estate attorney and real estate professional, with your authorization, can work your lender’s loss mitigation department on your behalf to prepare the proper documentation and speed the process along.)

 

5. Don’t expect a short sale to solve your financial problems. Even if your lender does approve the short sale, it may not be the end of all your financial woes. Here are some things to keep in mind:

  • You may be asked by your lender to sign a promissory note agreeing to pay back the amount of your loan not paid off by the short sale. If your financial hardship is permanent and you can’t pay back the balance, talk with your real estate attorney about your options.
  • Any amount of your mortgage that is forgiven by your lender is typically considered income, and you may have to pay taxes on that amount. Under a temporary measure passed in 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act, homeowners can exclude debt forgiveness on their federal tax returns from income for loans discharged in calendar years 2007 through 2012. Be sure to consult your real estate attorney and your accountant to see whether you qualify.
  • Having a portion of your debt forgiven may have an adverse effect on your credit score. However, a short sale will impact your credit score less than foreclosure and bankruptcy.

Reprinted from REALTOR® Magazine (RealtorMag.Realtor.org) with permission of the NATIONAL ASSOCIATION OF REALTORS®.

Copyright 2008. All rights reserved

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