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