pnbsp;/p
pOK. You have created the decision. Yoursquo;re able to purchase a property. nbsp;Great! nbsp;Yoursquo;ve got that dream home pictured inside your head. nbsp;Now all you need to do is find a Realtor, make your provide and move in. nbsp;Right? nbsp;Wrong./p
pnbsp;/p
pYour first step ought to be to locate a trustworthy mortgage expert. Why start using a mortgage skilled? nbsp;Inside a nutshell, this could save cash, time and boost your bargaining power./p
pnbsp;/p
pYour mortgage broker is going to be capable to let you know first in case you can qualify to buy a house at all. nbsp;Second, in case you are in the running for acquiring, she or he can let you know just how much home youll be able to qualify for. nbsp;Think of it. nbsp;Do you as well as your Realtor want to run about for a month or two worth of weekends, finally uncover your dream home, just to find out that you can not afford it?! nbsp;Thatrsquo;s a whole lot of time, and time is funds (or a minimum of a great deal of wasted weekends). nbsp;Wouldnrsquo;t it be far better up front to know what you are able to and cannot buy, zero in on that, and accomplish that superb feeling of success? nbsp;Naturally./p
pnbsp;/p
pNicely, you might have currently believed of all that. nbsp;Even so, did you understand that the seller of ones dream residence could offer you preferential remedy if you are pre-approved? nbsp;The seller features a life and time lines just like the rest of us. nbsp;They want offers which are going to operate. nbsp;They donrsquo;t want their residence beneath contract, simply to possess the deal fall by way of since the buyer can not qualify! nbsp;So, letrsquo;s say you make a bid on a home and another celebration tends to make a bid at the same time for precisely the same amount. nbsp;The other bidder is pre-approved, you are not. nbsp;Which bid must they accept? nbsp;Clear. nbsp;One more scenario, letrsquo;s say you (not pre-approved) make a bid and one more bidder bids slighter reduced but is pre-approved. nbsp;Which bid would you accept?/p
pnbsp;/p
pAnd one last matter to cover, there are different levels of pre-approvals. nbsp;The lowest level may well be known as pre-qualification and this requires the mortgage expert taking your details (revenue, expenditures, and so forth.), putting it all collectively and letting you understand just how much property you can qualify for depending on the numbers you provide. nbsp;Another degree of pre-approval is for the mortgage professional to run the loan via automated underwriting (obtaining far more technical, here) to obtain an approval offered that all of your information may be verified. nbsp;The highest level would be operating the loan by means of a lender and actually performing each of the verifications. nbsp;Naturally, the higher level of pre-approval offers you a lot more to stand on and carries essentially the most weight when bidding on a home. nbsp;In any case, your mortgage specialist need to provide you with a letter stating on what level youre pre-approved./p
pnbsp;/p
pHopefully by now the picture is clear, call that mortgage specialist Just before beginning your home search. nbsp;And maybe, just perhaps, the process may even be entertaining./p
pnbsp;/p
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pa href=http://www.hypoteclending.com/Hypotec Lending/anbsp;helps clients across the country refinance their mortgages. Feel Free to contact us for a free of charge consultation concerning yournbsp;a href=http://mortgage-broker.co/mortgage/anbsp;nbsp;requirements. Our friendlynbsp;a href=http://mortgage-broker.co/mortgage experts/anbsp;are here to assist. Get Started Today!/p
Advice – Don’t drink from that well
This is a little bit more of a personal post. I recently worked with some buyers on the purchase of a vacation property here in North Conway NH and they were eager to ask for advice for service providers in the area. I consider this to be an important part of the services I offer as a real estate professional. The long distance link between the homeowner and the service providers is extremely important for peace of mind and trust in getting an emergency repairs done. Unfortunately, in this case, the buyers didn’t take my advice and shopped by price alone.
To me, this is like being told that you shouldn’t drink from the well out back because it is tainted but you can walk down to the stream to get fresh water. However, you still choose to drink from the tainted well because it is closer.
The case in point is about a heating fuel and system service provider. I am not going to name the company that I think did the wrong thing here but I will point out that I recommended the provider I use: White Mountain Oil and Propane in North Conway. I figure, what better testimony than to say “I live here and can pick from any provider AND I hear plenty of stories from other consumers AND, therefore, I choose to work with White Mountain Oil and Propane for my own home.”
Unfortunately these buyers didn’t take that advice. They had oil delivered into a nearly empty tank by the un-named provider and the tank should not have passed a safety inspection. It turns out the tank has a bit of a leak from corrosion. The previous owner had moved out of the home months before, during the summer, and there was so little oil (and therefore very little weight of fuel) in the tank that he didn’t notice any leaking. For the same reason, I assume, the home inspector didn’t notice anything wrong with the tank. It looked fine. But once the oil was added the weight of it caused a steady drip.
Of course, the buyers turned to me for some help. I called THEIR fuel provider and was told that a trip out to look at the tank would be $89 for the 1 hr. min. labor. This was just to figure out how the tank problem escaped their safety inspection. I told them to hold off and I called White Mountain Oil and Propane. They sent someone out the same day and I got a call a few hours later explaining the problem and the fact that the tank would not have had fuel added if they had inspected it. I got a quote for the repair work within 24 hours.
The point I really want to make here is this: Why ask for advice if you already think you know better? If you live many hours away from your vacation property and someone gives you pointed and experienced advice about your need for a reliable service provider, why would you try to save a few pennies per gallon? If you call for help from many many miles away wouldn’t you want to know that you can depend on the heating service provider and trust that they will work hard to keep your business?
The bottom line is that White Mountain Oil and Propane has gone above and beyond exceptional AGAIN. I know who I will continue to recommend to my clients and customers. Need their #: 603-356-6386 White Mountain Oil and Propane
How Is National Mortgage Settlement $ Being Spent?
The bank owned real estate sales in the North Conway NH real estate market have slowed a bit as a result of the mortgage companies’ settlement but I see this as another in a series of government created slow downs in the process of listing bank owned real estate. This is not the first time that we have seen a slow down in foreclosures in the Bartlett NH, Jackson NH, and North Conway real estate market area. Every 6 to 9 months since the start of the mortgage backed securities crisis new programs are rolled out that imply that the intent is to make it easier for people to retain their homes that they can’t afford. The end result is usually the same: It controls the market from having a bunch of reo properties putting serious downward pressure on prices. Therefore the dramatic price decreases appear less dramatic. Yet the prices continue to drop.
I have had to tell many sellers that their home is worth less tomorrow than it is today. This is not an easy concept for people to swallow considering that they still are pumping money into the upkeep of their property. Not to mention the fact that this is contradicting the pattern we all have lived in for the last 20 years. However, it is the reality. It no longer makes any sense to set a home’s sale price a little high and “see how it goes”. As the value drops out from under an inflated price the next price reduction barley keeps up. This also forms the impression that the seller is “losing money” based on the idea that they started counting the cash when they listed it at a price above market value. However, this is a natural reaction to the sale process for a homeowner and it is the responsibility of the professional real estate agent to make sure th atthe seller understands that good deals are sitting while great deals are selling in the North Conway NH real estate market. What is really irksome is that many “professionals” are not comfortable with presenting the less than rosy picture and decide that taking a listing at too high of a price is better than having some other agent’s sign go on a property (and they figure they can always let “the market speak” for itself rather than be perceived as the bad guy).
It is CRUCIAL to get the real picture when you are selling your home. For the “Real Deal” call me, Bill Barbin, or email me. My direct # is 603-986-0385.
Should I Rent My House in the North Conway area If I Can’t Sell It?
There has been a lot written about how buying a home is less expensive than renting one in many parts of the country. Rents are skyrocketing and homes are at bargain prices. These two situations are also causing some sellers to consider renting their home instead of selling it. After all, they can get great rental income now and perhaps wait until house values increase in the future before selling.
This logic makes sense in some cases. We at KCM believe strongly that residential real estate is a great investment right now. However, there is a huge difference between deciding you want to become an investor (and landlord) and deciding that renting your primary residence might be ‘easier’ than trying to sell it. As a real estate professional, it is your job to educate the homeowner to the possible challenges that might arise if they rent their home.
Here are some questions every potential landlord should consider:
10 Questions to Ask BEFORE Renting Your Home
1.) How will you respond if your tenant says they can’t afford to pay the rent this month because of more pressing obligations? (This happens most often during holiday season and back-to-school time when families with children have extra expenses).
2.) Because of the economy, over ten percent of homeowners can no longer make their mortgage payment. What percent of tenants do you think can no longer afford to pay their rent?
3.) Have you interviewed a few experienced eviction attorneys in case a challenge does arise?
4.) Have you talked to your insurance company about a possible increase in premiums as liability is greater in a non-owner occupied home?
5.) Will you allow pets? Cats? Dogs? How big a dog?
6.) How will you actually collect the rent? By mail? In person?
7.) Repairs are part of being a landlord. Who will take tenant calls when necessary repairs arise?
8.) Do you have a list of craftspeople readily available to handle these repairs?
9.) How often will you do a physical inspection of the property?
10.) Will you alert your current neighbors that you are renting the house?
Homeownership: The American Dream
Posted: 18 Jul 2012 04:00 AM PDT
As a real estate professional, it’s important to understand, and remind yourself, that homeownership really is the American Dream and your job is be the guardian and guide to make that dream a reality. This is especially important in a market where some people may be misinformed about the benefits and possibilities of buying a home.
The good news is 96% of homeowners see homeownership as a positive experience and 88% of renters aspire to own a home. This is true in the United States more than any other country. Owning a part of our country has always been the American Dream and as an agent you are instrumental in this dream. It’s your job to help guide people to their ultimate goal of homeownership.
The first thing you must realize is that homeownership is NOT about the money. In fact, if we look at Fannie Mae’s quarterly National Home Survey, as far back as we can go, the top four reasons for buying a home are the same. The top four reasons people buy a home are:
- It means having a good place to raise children and provide them with a good education
- To have a physical structure where their family feels safe
- It allows for more space for their family
- It gives them control over what they do with their living space including renovations and updates.
Homeownership means something more to people and their families than just financial considerations. It’s up to you to be ready to communicate ALL the advantages to homeownership, not just the financial ones.
In tomorrow’s post, we will address more advantages of homeownership.
The Real Value of Homeownership – It’s Not Monetary
The Real Value of Homeownership…It’s Not Monetary
Posted: 27 Jun 2012 04:00 AM PDT
There are numerous media sources reporting the advantages and disadvantages of homeownership. Every expert (from international money managers who have hundreds of billions of dollars of assets under management to local and national real estate experts) has chimed in on the subject. The bottom line is that the percentage of folks that own a home is going down.
This is largely because the amount of Echo-Boomers, adults from the ages of 18-34, are either still living at home or are renting. I write this blog post not for the hopes that those individuals will enter the world of homeownership (I am confident that they will when the time is right), but to give readers a real life experience of the value of homeownership. And it is certainly not monetary.
I grew up in a middle-class family. Both of my parents worked and were lucky enough to have steady employment for most of their careers. My father worked within the same industry for almost 30 years and retired at the age of 62 with my mother doing so as well. They purchased a simple home back in 1972 for about $35,000. At that time, their mortgage payment with taxes and insurance was about 40% of their take home pay. Needless to say, with all other household expenses, they were barely making ends meet. Their decision to buy a home was not made from the expectation of home appreciation and whether or not it was a good investment. No, they did not even remotely think of those points when closing on their home! Instead, their goal was to raise a family in a home which they could call their own. It would be a permanent place that their child could call home…a home in which they could have family gatherings for holidays such as Christmas and Christmas Eve which were always hosted by my mother and father. A home that when my parents came home from a long day at work they could walk into and relax. For a moment, they could feel like a burden was lifted off their shoulders and all the day’s work actually meant something. They were building a foundation of memories!
Childhood
I was born in 1974. I was lucky enough to have parents that had started to build the foundation that was the basis of memories that will last a lifetime. I can remember playing basketball and baseball in the driveway with my father and wrestling with my dogs on the front lawn. I remember waiting and looking out the window anxiously for all of my relatives to show up for the holidays. I remember the aroma of Christmas cookies and pies permeating the house. I remember all of my cousins and neighborhood friends retreating to the basement playroom during holidays where we would spend hours talking and playing with toys. We were establishing memories and friendships that carry on to this day.
Second Home
During the Summer, my father’s love for fishing and the ocean brought us to a campground on the shores of Cape Cod. My mother worked in the public school system which afforded her the summers off from work. From the time I was 7 years old, on the last day of the school year, we packed the car and headed off to the trailer for 3 months of beach going, fishing, and camping. My mother and I would stay down the Cape for the summer and my father would make the journey every weekend to join us. Again, I am blessed to have such great parents that allowed this to happen. In 1984, my parents, along with some campsite comrades, decided to purchase land and build a summer home for their respective families. The choice was a tough one. Both families knew it would be financially testing to complete such a task. However, in the long run, they felt it was the right decision. A permanent summer home where their families could congregate, host visitors, and relax from the week-long grind was worth the financial sacrifice. Again, this decision was not made in the hopes of financial gain; it was made for the good of their family.
I remember the construction of the home as if it were yesterday…from the pouring of the foundation, to the framing, to the day my father and I made our first overnight stay. We slept in cots in front of the fireplace that my father and his best friend built. The house was not finished but we were so anxious to stay in the house that we did so without plumbing or light fixtures. We had a blast! Those memories will last me a lifetime.
Fast Forward
Unfortunately, after a battle with cancer my father passed away on April 28, 2010 at the age of 69. A month earlier, my daughter, his first grandchild was born. Tragically, my daughter will never have the privilege to meet my father and my best friend. But while sitting on the Cape house deck in the very chair my father always relaxed in, watching my wife and mother play with Riley in her wading pool, I came to realize something. So many of us look at homeownership through “monetary glasses”. When one is buying a house as a primary or secondary residence and is hoping to stay a while, homeownership is not about the monetary/price appreciation aspect of purchasing the home. It is about building a foundation of memories for you and your loved ones. I count my blessings that my parents thought this way. It is because of their wise decisions, that the foundation they built will be enjoyed for generations to come.
Vacant Homes Pose Risks for Agents by Inman News
Vacant homes pose risks for agents
Squatters — or worse — may be lurking in REOs
By Inman News, Tuesday, June 19, 2012.
Vacant home image via Shutterstock.By DAVID W. MYERS
It was a typical balmy Southern California afternoon when veteran agent Stephanie Janeshak of Tarbell Realtors in Corona stopped by a modest-sized foreclosed home to give it a preview before showing it to one of her clients.
She had toured dozens of vacant properties before and was comfortable with the task — so much so that she brought her 2-year-old toddler with her because a babysitter wasn’t available.
The front of the home was in fairly decent shape, Janeshak recalls, so she retrieved the keys from the lockbox on the door and walked in. The kitchen looked OK, and so did the living room; there were no broken windows or graffiti on the walls, two tell-tale signs that the home might be occupied by squatters or drug dealers.
And then, she opened the door to the bedroom.
http://www.inman.com/news/2012/06/19/vacant-homes-pose-risks-agents
Nearly 16M Homes Are Now Underwater
Posted: 30 May 2012 04:00 AM PDT
Zillow just reported that their data shows nearly 16 million homes in this country are now in a negative equity position where the house is worth less than the mortgages on the home. This number is dramatically higher than the approximate 11 million reported by other entities. Why the huge difference? Zillow professes to take into consideration ALL loans on the property not just the most recent loan (purchase or refinance).
The key findings in the study:
- Nearly one-third (31.4 percent) of U.S. homeowners with mortgages – or 15.7 million – were underwater on their mortgage.
- A slower pace of foreclosures after the robo-signing issues of 2010 contributed to slower progress in working down negative equity. Foreclosures cause homes to come out of negative equity when a bank or third party takes ownership.
- Nine in 10 homeowners continue to make their mortgage and home loan payments on time, with just 10.1 percent of underwater homeowners more than 90 days delinquent.
- Nearly 40 percent of underwater homeowners, or 12.4 percent of all homeowners with a mortgage, owe between 1 and 20 percent more than their home is worth.
- An additional 21 percent of underwater homeowners, or 6.6 percent of all homeowners with a mortgage, owe between 21 and 40 percent more than their home is worth.
- About 2.4 million, or 4.7 percent of all homeowners with mortgages owe more than double what their home is worth.
How can negative equity impact the housing market? In the report, Zillow Chief Economist Stan Humphries explains:
“Not only does negative equity tie many to their homes, by making homeowners unable to move when they may want to, but if economic growth slows and unemployment rises, more homeowners will be unable to make timely mortgage payments, increasing delinquency rates and eventually foreclosures.”
