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
Monday, January 26, 2009
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
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
Saturday, January 17, 2009
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
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
Sunday, January 4, 2009
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.
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.
Subscribe to:
Posts (Atom)