First Time Home Buyers Programs available in Billings MT

If you are thinking about buying your first home or becoming a homeowner again after years of renting you may be eligible for assistance that can help you get into a home with less money down or a lower interest rate. The most important factor in finding the right programs is finding the right lender and a real estate agent who is willing to spend extra time and effort making sure you understand the process and are getting the best deal. It is very important to find a lender and an agent that have knowledge and experience in dealing with first time home buyers.
There are 5 main programs available in the Billings area. Give me a call to explain these programs and help you with them.

Jacque Lorang 690-5277 or email ablahoo@yahoo.com

5 Questions to Consider before Purchasing a Home

1. Why are rates so low?
2. Are rates expected to stay this low?
3. Why do different mortgage surveys come up with different average interest rates?
4. What else does a consumer need to know?
5. So is now the best time to buy a home?

Give us a call to discuss these points. 248-4409

NOW IS THE TIME TO BUY

The average interest rate for a 30-year mortgage dropped to a record low of 4.71 percent this week.
The rates were pushed down by an aggressive government campaign to reduce borrowing costs.
The rate, published Thursday by Freddie Mac, is the lowest since the mortgage finance company began tracking the data in 1971.
Contact Billings Real Estate Professionals to start the process to purchase that new home. 248-4409

Why Should You Buy Now ???

The price of gold is steadily going up and has increased over 20% in the last two months. Why should that concern you, if you're not buying or selling gold ? Because as the price of gold goes up, the value of the dollar goes down. It takes more dollars to buy the same ounce of gold and therefore it makes those dollars worth less. And as the value of the dollar decreases it increases the pressure on inflation. Also all the stimulus dollars floating around the economy is also increasing the pressure on inflation since most the stimulus money is new money created by the government. More money in the money supply makes the existing dollars worth less.
The Federal Reserve Board has historically reacted to control inflation by raising interest rates. Right now interest rates are at an alltime low but after the 4th quarter reports start coming in around the 3rd week of January next year and inflation rears it's ugly head then the fed will almost certainly raise interest rates. You would be amazed at how much just a 1 percent interest rate difference would cost on a fixed rate mortgage of 30 years,literally thousands of dollars. And if they raise the rate, who knows when and where it will reach it's ceiling. So if there was ever an ideal time to buy, it's NOW, while interest rates are low and all the tax incentives like $8000 for 1st time homebuyers and $6500 for present homeowners to upgrade and $2500 to upgrade your home's energy efficiency are still in effect.
Call Larry or Jo Ann Thomas at 628-2903 or 545-9249 today and let us find your next home tomorrow.

Tips for buyers

Interested in buying a home and claiming the home-buyer tax credit? Here are five tips:
1. Don't procrastinate. Start searching for a home now.
2. Don't count on another extension.
3. Mind the interest rates. Mortgage interest rates are low
right now, but could rise next year. Higher rates will
affect your monthly mortgage payments.
4. Communicate with your lender.
5. Don't take shortcuts. Don't forgo any of the steps you would
normally take just to make the tax credit deadline. Skipping
steps could cost you in the long run.

Give us a call to help you start looking for your new home.
248-4409

BASICS OF A VA LOAN

A VA loan is not a loan from the VA, in actuality, the VA only insures the loan from a VA approved lender. This allows the lender to loan up to 100% of the appraised value of the home.
The lender will determine how much home you can afford by looking at your debt, income, credit scores and other criteria.
You will not have to come up with a down payment however, there are certain closing costs and a funding fee associated with a buying a home, however you can negotiate with the seller to pay these costs.
The VA will only provide the loan for your primary residence; therefore you may be able to buy up to a triplex as long as you plan on living in one of the units.
You may only have one VA loan at a time; however you may use your VA loan more than once. You must pay off each loan before obtaining the next.
The home you choose will have to pass meet certain criteria in order to get the loan, the standards for a VA loan are higher than a standard conventional loan. Items such as peeling paint or an outlet in the wrong place may disqualify a home. Also, mobile homes not on a VA approved foundation will not be approved.
Getting a VA loan is not much different then obtaining any financing except that you will need a COE--Certificate of Eligibility--from the veteran affairs office more info at va.gov. Once you obtain your COE take it into a lender along with all the information they request, the will pre-approve you at a certain price range.
Once you know how much home you can afford you can start working with a Realtor. Make sure that your Realtor is familiar with VA requirements for a home and understands the process.
A VA loan is not always the best option just because you are eligible, make sure you lender explains the benefits and negatives of each type of loan you are eligible for so you can decide what works best for you.
Call Jacque Lorang 690-5277 or e-mail ablahoo@yahoo.com

Finances, Insurance and You

Any loan not guaranteed or subsidized by the government or it's agencies is called a conventional loan. With a conventional loan the lenders use as a standard an 80% loan to value which after the buyers good credit has been established is considered a safe loan. Many times the buyer is not able to pay 20% of the purchase price as a down payment and the lender will consider, usually at a higher interest rate, a 90% or higher LTV. In this event the lender will require private mortgage insurance ( PMI ). This insurance will cover the lender for the difference over the 80% LTV, in the event of the purchaser's default on the loan. The initial PMI preminum is paid at closing and the renewal preminum is added to the interest rate of the mortgage, usually around one half a percent or more. This PMI is only required for the amount over the 80% LTV. As the mortgage matures and the principal amount has been substantially reduced or the home owner has made some big improvements to add to the value of the home, the LTV may fall below the 80%. In this event the homeowner may request an evaluation to establish the home's current value, called a certificate of value. The lender will request an appraisal or a brokers price opinon to establish current value, usually paid by the homeowner. Once the value has been established and if the principal amount of the mortgage is below the 80% LTV, the homeowner may request that the PMI be cancelled and unless the homeowner has been more than 30 days late on their payments or their creditworthiness has changed drastically, the lender will cancel the PMI and the mortgage payments will be reduced by the amount of the renewal preminum. It is very important that the homeowner keep track of the principal amount of their mortgage as the mortgage matures because the cancellation of the PMI could amount to a substantial savings and some lenders will not notify you and continue to collect preminums that are not needed. Any questions or clarification call or e-mail Larry or Jo Ann Thomas at 628-2903 or 545-9249 larrythomasbrep@msn.com

Buying versus Renting

There are many advantages to buying a home versus renting one. View these advantages in the Buy vs. Rent Comparison Chart:
http://www.ginniemae.gov/rent_vs_buy/rent_vs_buy_calc.asp?section=YPTH,
or view a financial comparison of buying versus renting in the Buy vs. Rent Calculator:
http://www.ginniemae.gov/rent_vs_buy/rent_vs_buy_calc.asp?section=YPTH.

Your income, savings, and monthly expenses play an important role in determining how large a mortgage you can afford. To figure out the amount you can afford, please check ffordability:
http://www.ginniemae.gov/2_prequal/intro_questions.asp?section=YPTH.

If you are interested in buying a home in the Billings area or any of the surrounding areas, please call us at 248-4409.

$8,000 for first-time homebuyer

For first-time homebuyers--and you are a first-time homebuyer if you haven't owned a home in the last three years--you can get $8,000 if you purchase a home before 11/30/2009. You can even get part of this money up front in order to help with your downpayment and closing costs. Contact us for information and to have an agent help you with this.

Pricing your property--THE ABC OF MARKET VALUE

Pricing a property based on the current market is the key to maximum exposure, a quick and trouble-free sale.
The value of any property is the price and terms where a buyer and a seller meet.
Truths- These factors truly determine the value of a home.
o Buyers determine by demand how valuable items such as location, design, amenities and condition are.
o Other sellers effect home values by providing competition
o The economy effects home values though interest rates and providing outlook.
Myths - These factors have little or no effect on the current value of a home:
o The price you originally paid for your property
o The amount you’re hoping to receive from the sell of this property
o The amount spent on improvements
Determining the market value:
By looking at the latest market activity we can determine an impartial estimate of a home’s current value. This estimate is called a Comparative Market Analysis, or CMA. In a CMA we look at properties that:
Have sold in the recent past – This shows us what current buyers have been willing to pay for similar properties.
Are currently on the market - These are considered competition. These are the properties that buyers will compare to and eventually choose between.
Failed to sell – These are the properties that were priced to high, we want to avoid ending up in this category, which is why the right price is so important.
For a free Comparative Market Analysis to determine how much your home is worth on today’s market call me, Jacque Lorang at 690-5277 or email ablahoo@yahoo.com

FHA Purchase & Renovation Program 203K

FHA has a little known program that was primarily associated with HUD homes but is also available for 1-4 family dwellings. This program can be used to finance the initial purchase and repair or improve the property in one loan. It's called the FHA 203K loan program and it can be used to repair property that you are interested in purchasing all in 1 loan providing that you will use credentialed contractors, it can even include cosmetic improvements as well as major renovation. There is a minimum of $5000 in repairs or improvements and can be used for mixed use residential/commercial properties if eligible. Even a burnt out shell, incomplete shell or empty foundation may be eligible for 203K financing provided it is over a year old.
FHA will lend up to 98.15% of the future value of the dwelling after all completed repairs as long as you do not exceed the maximum FHA loan limit for the area of the properties location.
With this program you can purchase that home you looked at but were discouraged in buying because it needed too much TLC and you couldn't afford the cost of repair out of pocket, or the seller couldn't or wouldn't fix the problems. With this program those problems can be fixed and financed all in 1 loan.
Call or e-mail Larry or Jo Ann Thomas and ask about this fantastic program at 628-2903 or 545-9249 or
larrythomasbrep@msn.com

!!! BILLINGS IS NUMBER 1 IN THE NATION !!!

BILLINGS now is ranked Number 1 in the Entire Country for expected Real Estate Price Appreciation !
Several months ago I commented that Billings was ranked no. 3 from Housing Predictor.com ( a web site that forecasts the real estate market nationally). Now they have increased Billings ranking up to Number 1 ! This is number 1 from 250 cities surveyed across the entire country ! The survey researches 20 different factors to arrive at their conclusions. Billings strong job market and overall good economic outlook were major factors in their predictions.
With the recent mortgage rate announcement from Freddie Mac, that 30 year mortgage rates are the lowest they have been since they started keeping records in 1971, can anyone question that NOW is the time, and the Billings market is the place to Buy or Sell Real Estate. Add to this, the new $8000.00 tax credit for 1st time homebuyers and you have many reasons to Buy or Sell NOW.
So if you have been sitting on the fence, wondering if this is the right time, wonder no more!
The time to BUY or SELL is NOW.
Call or e-mail Larry or Jo Ann Thomas today, to get your real estate transaction moving forward NOW.
Call...(406)628-2903 or (406)545-9249
E-mail... larrythomasbrep@msn.com or JoAThomasBREP@q.com

$8,000 First-Time Homebuyers Tax Rebate

What is a first-time homebuyer? A person who hasn't owned a home within the last 3 years or wants to purchase a home and owns a mobile on a rented lot.

If you do not have the downpayment and closing costs, contact us on how to use the $8,000 tax credit toward these costs.

Roger Johnston, Broker/Owner Billings Real Estate Professionals 248-4409

The Selling Process
OFFER AGREEMENT SELL!
By Jacque Lorang

When you list a home for sale, you are hoping to get an offer, here is a breakdown of the home selling process after you accept an offer:
Present you the offer:
v Go though the buy/sell agreement.
v Explain your options.
v Explain to you what will be expected.
v Negotiate with the buyers.
Getting to the closing table:
v Explain in detail all the steps that will take us to closing.
v Make sure that the transaction moves forward and all dates are met.
v Accommodate the inspection and home appraisal for the buyer.
v Preparing for the closing.
v Maintain communication.
The Closing:
v You, I and a closing agent will meet at the title company on the closing date.
v The closing will take about a half hour.
Not done yet:
v Follow-up to make sure all your expectations have been met.
v I will continue to be available to.
v Help you find your next home.

For more information on selling your home, contact me, Jacque Lorang 690-5277 or email ablahoo@yahoo.com
For a more detailed description of the Home Selling Process see the most recent post in our Archives section.

Top Ten Reasons You Should Professionally Stage Your Home

1. $$$$- Statistics show staged homes sell for more money than their unstaged counterparts..
2. Sell Faster- Less time on the market means fewer double mortgage payments and less stress.
3. Recoup your costs and then some!
4. Help those with no imagination. Staging helps people visualize their lives in the home.
5. Don’t guess what works, let a professional use tried and true methods.
6. Only 10% of home buyers can visualize the potential of a home.
7. The longer a home is on the market, the less it typically sales for. STAGE FIRST!
8. Tax Benefits- The money you make may be tax-free. The money you spend is tax deductible.
9. Leaving your house in “as is” condition will help sell the competition.
10. You can relax.
For more info on selling your home and the use of professional staging call me, Jacque Lorang 690-5277 or email ablahoo@yahoo.com

THE FSBO MYTH

In today's society of instant communication such as the internet, many homeowners assume they can save money by selling their home without a real estate agent. This for sale by owner is called a FSBO. Two questions with this assumption need serious thought.
1. Are you up to the task ? Do you have the time,knowledge and expertise to accomplish your goal, if so great?
However,most the population,about 85% are not familiar with real estate transactions and prefer to have a professional handle it for them. Most buyers are uncomfortable dealing directly with sellers because of the " BUYER BEWARE " syndrome.
So from the beginning you are limiting your potential buyers to only 15%. If you decide to expand your potential buyers to the 85% who will be using a professional by offering a buyers agent commission, that will solve the problem, right. Not really, because Realtors will ignore FSBOs unless their client requests to take a look at this home, because it complicates their procedure for only 1 home, when they could show 3 homes in the time involved through the MLS system they know and trust.
So essentially we are back to the 15% of potential buyers. Who are these people? Most of the buyers seeking FSBOs are BARGAIN HUNTERS,they are searching out homes that they feel can be purchased for less than market value and they are in no hurry. They can afford to wait until the FSBO becomes frustrated and hope to take advantage of their possible lack of knowledge and inexperience in the real estate market. In many cases they will make lowball or unreasonable offers.
2. Are you really going to save money?
A few statistical facts from The National Association of Realtors,82% of FSBOs ultimately list their home. NAR stats also tell us that FSBOs that do sell, sell for 15.4% less than Realtor assisted homes. So, you will do all the work,pay for all the advertising and still may end up selling for less than a Realtor.
Call Larry or Jo Ann Thomas at 628-2903 or 545-9249 and get the price and exposure your home needs.

1st Time Home Buyers

By Jacque Lorang

1. Sit down and look over your financial situation and your goals.
2. Call a trusted lender, or ask friends and family for a reference of a good lender.
3. Gather the documents they requested and be on time to your appointment with the lender.
4. Now you know how much home you can afford, call a trusted Realtor, or again, ask friends and family for a reference.
5. At this point your Realtor should provide you with several homes that meet your price range and criteria for you to go look at.
6. When you find a home you like it’s time to write up the Buy/sell and negotiate with the sellers.
7. Once you have a buy/sell signed by both you and the sellers get your lender back in the picture.
8. While you are working with lenders, your real estate agent should be helping you schedule a home inspection.
9. Once the Home Inspection is done, your lender should help you schedule a Home Appraisal to make sure the home is worth the purchase price or more.
10. Finally you are ready to close on the home and transfer the deed from their name to yours.
11. Congratulations, the agent hands you the keys and you are now homeowners.
For more information on buying your 1st home or for a free 1st time home buyers packet to help you get started contact Jacque Lorang at 690-5277 or ablahoo@yahoo.com

!!! BILLINGS IS NUMBER 1 IN THE NATION !!!
BILLINGS now is ranked Number 1 in the Entire Country for expected Real Estate Price Appreciation !
Several months ago I commented that Billings was ranked no. 3 from Housing Predictor.com ( a web site that forecasts the real estate market nationally). Now they have increased Billings ranking up to Number 1 ! This is number 1 from 250 cities surveyed across the entire country ! The survey researches 20 different factors to arrive at their conclusions. Billings strong job market and overall good economic outlook were major factors in their predictions.
With the recent mortgage rate announcement from Freddie Mac, that 30 year mortgage rates are the lowest they have been since they started keeping records in 1971, can anyone question that NOW is the time, and the Billings market is the place to Buy or Sell Real Estate. Add to this, the new $8000.00 tax credit for 1st time homebuyers and you have many reasons to Buy or Sell NOW. So if you have been sitting on the fence, wondering if this is the right time, wonder no more! The time to BUY or SELL is NOW.
Call or e-mail Larry or Jo Ann Thomas today, to get your real estate transaction oving forward NOW. Call...(406)628-2903 or (406)545-9249
E-mail... larrythomasbrep@msn.com or JoAThomasBREP@q.com

Six reasons why you should work with a Realtor.

1. Help with a sometimes complicated process.
Buying or selling a home requires confusing forms, inspection reports, policies, mortgage documents, contracts, and a lot more. An expert with knowledge will help prepare you with the best deal and help avoid lengthy delays or costly mistakes.

2. Important info.
Realtors can provide needed information about the surrounding areas and the community. A Realtor should be able to answer questions or concerns you may have on the buying or selling process. If they do not have an immediate answer, they should know where to go or who to call to find out the information you need.

3. Finding the right property.
An agent will be able to build you a search based on your wishes and wants that you desire in your first home or your dream home.

4. Negotiations.
An agent will be able to help in negotiating in areas such as, inspections, price, terms, and much more.

5. Marketing.
Marketing is key in selling your home. Different areas of marketing include but are not limited to; Online, different newspapers, and agent yard signs. Open houses are important in showing the public your home. When you work with a Realtor, they can put your home in the system so that many other agents can see your home and then in turn show it to their clients.

6. Experience and Knowledge.
We as Realtors have a wealth of knowledge in the business, but we also should have brokers behind us 100% who have been in the industry for many years and here at Billings Real Estate Professionals, we do!

"When Team Work Matters"
Call us today to see what we can do for you.
Michelle Anderson 208-7128
Alicia Mader 690-8687

First Time Homebuyers $ 8000.00 Tax Credit Available NOW !!!

First time homebuyers may be eligible for a tax credit for 10% of purchase price up to $8000.00. Meaning of course, if you purchase a home with over $80,000.00 purchase price, you could be eligible for the full $8000.00.
What constitutes a 1st time homebuyer? Generally, a buyer who has not owned a home within 3 years prior to purchase.
Does the credit have to be repaid? No, if the home is purchased between Jan 1 2009 and before Dec 2009 and not sold for 3 years.
Are there income limits to determine who is eligible ? Yes, up to $75,000 modified adjusted gross income for single and $150,000 for joint taxpayers.
What types of homes qualify? Any home purchased by an eligible 1st time homebuyer and used as a principal residence. The home may be a manufactured home, a modular and be real or personal property.
Can this credit be used for a down payment or closing costs? Yes, several mortgage brokers and lenders have developed a system to make this possible.
MORE QUESTIONS: Call Larry or Jo Ann Thomas today at 628-2903 or 545-9249. We are here to "HELP YOU TODAY FOR YOUR TOMORROWS"

7 Reasons to Own Your Own Home
By Jacque Lorang


1. Tax breaks.
2. appreciation
3. Equity.
4. Savings.
5. Predictability.
6. Freedom.
7. Stability
For more information on each of these advantages check out the next post in our archives section.

To calculate whether renting or buying is the best financial option for you, use this online calculator courtesy of Ginnie Mae

7 Reasons to Own Your Own Home
By Jacque Lorang


1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, property taxes you pay, as well as some of the costs involved in buying your home.

2. Gains. Over last five years (1998-2002) national home prices have increased at an average of 5.4 percent annually. And while there’s no guarantee of appreciation, a 2001 study by the National Association of REALTORS® found that the typical homeowner has approximately $50,000 of unrealized gain in a home.

3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.

4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.

5. Predictability. Unlike rent, your mortgage payments don’t go up over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will rise.

6. Freedom. The home is yours. You can decorate any way you want and be able to benefit from your investment for as long as you own the home.

7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

To calculate whether renting or buying is the best financial option for you, use this online calculator courtesy of Ginnie Mae.

Top 10 Tax-Friendly Cities
Sunday, March 1, 2009 provided by Kiplingter
Tax rankings are based on 2007 tax return computations for a two-income couple earning $75,000 with one school age child. The real property tax is a function of housing values, real estate tax rates, assessment levels, homeowner exemptions and credits. The auto tax figure assumes the couple owns two cars and is based on the estimated registration fees, state and local gasoline taxes, and personal property taxes, if any.
No. 1 Anchorage, Alaska
No. 2 Manchester, New Hampshire
No. 3 Cheyenne, Wyoming
No. 4 Seattle, Washington
No. 5 Las Vegas, Nevada
No. 6 Jacksonville, Florida
No. 7 Sioux Falls, South Dakota
No. 8 Phoenix, Arizona
No. 9 Billings, Montana
Income tax: $2,559
Property tax: $1,865
Sales tax: $0
Auto tax: $689
STATE & LOCAL TAX BURDEN: 6.8%
Urban Facts: Billings taxpayers with adjusted gross incomes of less than $30,000 can exclude up to $3,600 of their pension income from state taxes.
Dubbed locally as the "Magic City," Billings is supporting growth by dunning its energy, agriculture, and transportation industries.
No. 10 Chicago, Illinois

Selling Your Home

Selling your home can be a very frustrating and emotionally draining process. There are many factors involved but 2 of the key factors are price and exposure. Your home needs to be exposed to the maximum number of people possible in the minimum amount of time, to find those that are qualified and willing to purchase.
If your exposure is limited, your home may require more time to sell. This is self defeating to a degree because the more time your home is on the market, it gradually may become less likely to sell at the best price. A home on the market for long periods of time sometimes creates the impression with potential buyers that there is something wrong with this house and they may avoid it unless the price falls well below the market value. In fact, they may expect a much lower price because of this impression that a lengthy time on the market creates.
Therefore it is essential that your home is priced as near to fair market value as possible and receives the maximum amount of exposure. Selling your home can be very complicated and we have barely touched on only two of the factors involved.
You need a Realtor to find your fair market value and give your home the exposure it deserves. Call or e-mail Larry E. Thomas, and with my wife Jo Ann, we can help you in evaluating your home and selling at the best price in the least amount of time. 628-2903 or 545-9249 e-mail larrythomasbrep@msn.com

First Time Home Home Buyer want tax credit from IRS?
Who is eligible to claim a $7500 tax credit?
Check this out:
1. What's the definition of a first-time home buyer?
The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to this purchase.
2. How do you claim the tax credit?
You claim the tax credit on your Federal income tax return.
3. What type of home will qualify?
Any home purchased as a principle residence by an eligible first-time home buyer. (See Limits for MAGI)partial credits are available for individual taxpayers with a modified adjusted gross income of more than $95,000 and for married taxpayers filing joint returns with MAGI of more than $170,000)
4. What is a tax credit?
A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $7500 in income taxes and who receives a $7500 tax credit would owe nothing to the IRS, in this year.
5. Does the tax credit have to be paid back to the government? If so, what are the payback provisions?
Yes, at this time the tax credit must be repaid. Home buyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit would be due from the profit on the home sale. If there was insufficient profit, the the remaining credit payback would be forgiven.
6. The first -time home buyer program should really be called a ZERO INTEREST Loan! Assuming an interest rate of 7%, that means the home owner saves up to $4200 in interest payments over a 15-year period.

Call me, Anita Wallace 671-4540, to find your dream home and claim your Zero Interest Loan

Billings No. 3 In The Nation!!!
by Larry Thomas

With all the bad real estate news we have all heard lately, it makes one wonder, how bad is it here ? Well, not so bad according to a national online real estate search firm, Housing Predictor. Housing Predictor predicts that 5 montana cities will be among the top 25 cites in the USA in appreciation values percentages. Billings at No. 3 in the nation leads the Montana pack with a forecast of 3.1 % appreciation in home values for 2009, folowed by Bozeman at No. 9 , Great Falls No. 13, Livingston No. 14 and Missoula No. 16. So the forecast for Montana in general and Billings in particular looks pretty good. Just think of the top 25 in the nation, Montana has 5 which is 1/5 of the total in the whole USA !!!
Referring back to an earlier blog " Why Buy Now" that all real estate is local and the national market has very little relation to the local market, it looks like Billings is a good place to sell as well as buy.

Call me for your help in finding your new home or listing or present home.
Larry Thomas 628-2903

10 Tips for First-Time Homebuyers
By Jacque Lorang


1. Be picky, but do not be unrealistic. There is no perfect home.
2. Do your homework before you start looking.
3. Get your finances in order.
4. Do not wait to get a loan.
5. Do not ask too many people for opinions.
6. Decide when you could move.
7. Think long-term.
8. Do not let your mortgage ruin you.
9. Do not be naive. Insist on a home inspection.
10. Get help. Consider hiring a REALTOR as a buyer's representative.
For more details on each of these topics check out the next post in our archives section. Thanks

For more information on buying your 1st home or for a free 1st time home buyers packet to help you get started call or email Jacque Lorang at 690-5277 or ablahoo@yahoo.com

10 Tips for First-Time Homebuyers
By Jacque Lorang


1. Be picky, but don’t be unrealistic. There is no perfect home.
2. Do your homework before you start looking. Decide specifically what features you want in a home and which are most important to you.
3. Get your finances in order. Review your credit report and be sure you have enough money to cover your down payment and your closing costs
4. Don’t wait to get a loan. Talk to a lender and get prequalified for a mortgage before you start looking.
5. Don’t ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion.
6. Decide when you could move. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area?
7. Think long-term. Are you looking for a starter house with the idea of moving up in a few years or do you hope to stay in this home longer? This decision may dictate what type of home you’ll buy as well as type of mortgage terms that suit you best.
8. Don’t let yourself be house poor. If you max yourself out to buy the biggest home you can afford, you’ll have no money left for maintenance or decoration or to save money for other financial goals.
9. Don’t be naïve. Insist on a home inspection and if possible get a warranty from the seller to cover defects within one year.
10. Get help. Consider hiring a REALTOR® as a buyer’s representative. Unlike a listing agent, whose first duty is to the seller, a buyer’s representative is working only for you. And often, buyer’s reps are paid out of the seller’s commission payment.


For more information on buying your 1st home or for a free 1st time home buyers packet to help you get started call or email Jacque Lorang at 690-5277 or ablahoo@yahoo.com

What are subprime mortgages ?
by Larry Thomas

Most all of us have heard the term subprime mortgages in print media and television. What is it and what effect has it had on our current financial crisis ? The term itself is misleading because sub meaning below would lead one to believe that this type of mortgage is actually below the prime rate. In fact it means just the opposite, above the prime rate. It is a type of loan granted to individuals with poor credit histories( often below 600 ), who as a result of their deficient credit ratings, would not be able to qualify for conventional mortgages. Because subprime borrowers present a higher risk for lenders, subprime mortgages charge interest rates above the prime lending rate.
Many lenders were more liberal in granting these loans from 2004 to 2006 as a result of lower interest rates and high capital liquidity. Lenders sought additional profits through these higher risk loans and they charged interest rates above prime in order to compensate for the additional risk they assumed. Naturally with higher interest rates, one has larger monthly mortgage payments which increased the chances of default and eventual foreclosure, especially with borrowers that have a history of shaky money management. Consequently, once the rate of subprime mortgage foreclosures skyrocketed, many lenders experienced extreme financial difficulties, and even bankruptcy.
Larry Thomas 628-2903

Make Your 2009 New Years Resolution--Own a Home!!

By Jacque Lorang
7 Reasons to Own Your Own Home
1. Tax breaks. Deduct mortgage interest, property taxes and other costs from your 2008 taxes.
2. Gains. Over last five years national home prices have increased at an average of 5.4 percent annually.
3. Equity. Mortgage payments let you build equity ownership interest in your home.
4. Savings. Building equity in your home is a ready-made savings plan.
5. Predictability. Unlike rent, your mortgage payments don’t go up over the years.
6. Freedom. The home is yours.
7. Stability. Remaining in one neighborhood for several years lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.
Call 690-5277 or email (ablahoo@yahoo.com) for a 1st Time Home Buyers Packet and to make your first move toward home ownership.