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.
Wednesday, December 31, 2008
SAVING TIME AND MONEY IN REAL ESTATE
by Kristine Glover
Finding the perfect home is a lot more costly when you have to spend a large chunk of cash on gas in order to search for potential homes. Visit with your real estate agent about very specific and important details regarding your next home it will save you a lot of time and in return save you money in the end.
Have your agent preview properties ahead of time, weeding out the properties that may have cost you time and money to drive and view. List the important facts about your new home to your agent .A location close to work, shopping, schools and more will save you time, and money when you consider the travel time from home to these destinations.
Ask your agent to include a public transportation directory to take advantage of public transportation saving you money and helping the environment.
Dispite the current condition of our economy It is still a wonderful idea to to invest in a new home or property. Be smart, Be choosy, Be happy!
Give me a call to help you find your perfect home. Kristine Glover 425-8282
by Kristine Glover
Finding the perfect home is a lot more costly when you have to spend a large chunk of cash on gas in order to search for potential homes. Visit with your real estate agent about very specific and important details regarding your next home it will save you a lot of time and in return save you money in the end.
Have your agent preview properties ahead of time, weeding out the properties that may have cost you time and money to drive and view. List the important facts about your new home to your agent .A location close to work, shopping, schools and more will save you time, and money when you consider the travel time from home to these destinations.
Ask your agent to include a public transportation directory to take advantage of public transportation saving you money and helping the environment.
Dispite the current condition of our economy It is still a wonderful idea to to invest in a new home or property. Be smart, Be choosy, Be happy!
Give me a call to help you find your perfect home. Kristine Glover 425-8282
Wednesday, December 17, 2008
First Time Home Buyers Programs available in Billings MT
By Jacque Lorang
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.
In this blog I will list and explain the basics of the 5 main programs available in the Billings area:
1. Home$tart- Provide $5000 to use for down payment and closing costs.
2. City of Billings- Provide assistance of $5,000 or $10,000 depending on the borrower’s income.
· http://ci.billings.mt.us/index.asp?nid=114
3. Neighborhood Housing Services- Provide $5,000 for down payment and closing costs.
4. Montana Board of Housing- This program provides loans at a lower interest rate.
· http://housing.mt.gov/Hous_BOH_SF.asp
5. $7,500 tax credit- Provide up to $7,500 on your next year’s tax refund.
a. http://www.federalhousingtaxcredit.com/index.html
These are just a few of the programs available and just the tip of the iceberg as far as details on each program. If you are thinking about buying your first home give me a call(Jacque Lorang 690-5277) I would be more than happy to help you take the 1st steps and provide you with a packet full of useful information you can use to help on your journey.
For more details on each program mentioned above see the next post in our archives section
*always consult your accountant as to the best program for you.
By Jacque Lorang
If you are thinking about buying your first home or becoming a homeowner again after years of renting you may be eligible for assistance that can help you get into a home with less money down or a lower interest rate. The most important factor in finding the right programs is finding the right lender and a real estate agent who is willing to spend extra time and effort making sure you understand the process and are getting the best deal. It is very important to find a lender and an agent that have knowledge and experience in dealing with first time home buyers.
In this blog I will list and explain the basics of the 5 main programs available in the Billings area:
1. Home$tart- Provide $5000 to use for down payment and closing costs.
2. City of Billings- Provide assistance of $5,000 or $10,000 depending on the borrower’s income.
· http://ci.billings.mt.us/index.asp?nid=114
3. Neighborhood Housing Services- Provide $5,000 for down payment and closing costs.
4. Montana Board of Housing- This program provides loans at a lower interest rate.
· http://housing.mt.gov/Hous_BOH_SF.asp
5. $7,500 tax credit- Provide up to $7,500 on your next year’s tax refund.
a. http://www.federalhousingtaxcredit.com/index.html
These are just a few of the programs available and just the tip of the iceberg as far as details on each program. If you are thinking about buying your first home give me a call(Jacque Lorang 690-5277) I would be more than happy to help you take the 1st steps and provide you with a packet full of useful information you can use to help on your journey.
For more details on each program mentioned above see the next post in our archives section
*always consult your accountant as to the best program for you.
First Time Home Buyers Programs available in Billings MT
By Jacque Lorang
If you are thinking about buying your first home or becoming a homeowner again after years of renting you may be eligible for assistance that can help you get into a home with less money down or a lower interest rate. The most important factor in finding the right programs is finding the right lender and a real estate agent who is willing to spend extra time and effort making sure you understand the process and are getting the best deal. It is very important to find a lender and an agent that have knowledge and experience in dealing with first time home buyers.
In this blog I will list and explain the basics of the 5 main programs available in the Billings area:
1. Home$tart- These kind folks will match you $3 for every $1 your family saves. The borrower can have up to $1667 to which Home$tart will provide $5000 to use for down payment and closing costs. A pro-rata share of the grant must be repaid if the home is sold within 5 years after the purchase, other than that there are no repayment obligations. The Home$tart program is open for first time home buyers and those who have not owned a home in the last 3 years that earn up to 80% of the area’s median income. In addition to being eligible by income, home buyers must complete a home buyer’s education class and qualify for financing with their lender. This program helps first time home buyers by keeping the initial expense of getting into a home down.
2. City of Billings- The City of Billings has a program where if the home buyer comes up with a minimum of $1000 they will provide assistance of $5,000 or $10,000 depending on the borrower’s income. There is an obligation to repay if the home is sold or refinanced prior to the 30 year term of the loan. Again, this program helps first time home buyers get into a home with less money down.
a. http://ci.billings.mt.us/index.asp?nid=114
3. Neighborhood Housing Services- A minimum investment of $500 to obtain the maximum loan amount of $5,000. Loans are paid back along with the borrower’s Montana Board of Housing mortgage payment over a 30 year term. This program is also in place to keep the initial costs of buying a home down.
4. Montana Board of Housing- This program provides loans at a lower interest rate. Currently they offer 30 year mortgages at 5.5%-6% interest rate. A lower interest rate means lower monthly payments. Again, the household must make less than 80% the area median income.
a. http://housing.mt.gov/Hous_BOH_SF.asp
5. $7,500 tax credit- If you buy a house between now and July 1, 2009 you are eligible to receive a tax credit up to $7,500 on your next year’s tax refund. This tax credit is actually more like an interest free loan. 2 years after you receive the credit you must start repaying it at a rate of $500 each year. The 1st year in a home can be very financially taxing, usually it takes most of your savings to come up with a down payment and closing costs, then there seems to be an endless list of things you need once you get into your new home. Hoses, lawnmowers, and a personal washing machine are something that most renters don’t think much about, but as a homeowner they become necessities and something the tax credit could help you acquire.
a. http://www.federalhousingtaxcredit.com/index.html
These are just a few of the programs available and just the tip of the iceberg as far as details on each program. If you are thinking about buying your first home give me a call(Jacque Lorang 690-5277) I would be more than happy to help you take the 1st steps and provide you with a packet full of useful information you can use to help on your journey.
*always consult your accountant as to the best program for you.
By Jacque Lorang
If you are thinking about buying your first home or becoming a homeowner again after years of renting you may be eligible for assistance that can help you get into a home with less money down or a lower interest rate. The most important factor in finding the right programs is finding the right lender and a real estate agent who is willing to spend extra time and effort making sure you understand the process and are getting the best deal. It is very important to find a lender and an agent that have knowledge and experience in dealing with first time home buyers.
In this blog I will list and explain the basics of the 5 main programs available in the Billings area:
1. Home$tart- These kind folks will match you $3 for every $1 your family saves. The borrower can have up to $1667 to which Home$tart will provide $5000 to use for down payment and closing costs. A pro-rata share of the grant must be repaid if the home is sold within 5 years after the purchase, other than that there are no repayment obligations. The Home$tart program is open for first time home buyers and those who have not owned a home in the last 3 years that earn up to 80% of the area’s median income. In addition to being eligible by income, home buyers must complete a home buyer’s education class and qualify for financing with their lender. This program helps first time home buyers by keeping the initial expense of getting into a home down.
2. City of Billings- The City of Billings has a program where if the home buyer comes up with a minimum of $1000 they will provide assistance of $5,000 or $10,000 depending on the borrower’s income. There is an obligation to repay if the home is sold or refinanced prior to the 30 year term of the loan. Again, this program helps first time home buyers get into a home with less money down.
a. http://ci.billings.mt.us/index.asp?nid=114
3. Neighborhood Housing Services- A minimum investment of $500 to obtain the maximum loan amount of $5,000. Loans are paid back along with the borrower’s Montana Board of Housing mortgage payment over a 30 year term. This program is also in place to keep the initial costs of buying a home down.
4. Montana Board of Housing- This program provides loans at a lower interest rate. Currently they offer 30 year mortgages at 5.5%-6% interest rate. A lower interest rate means lower monthly payments. Again, the household must make less than 80% the area median income.
a. http://housing.mt.gov/Hous_BOH_SF.asp
5. $7,500 tax credit- If you buy a house between now and July 1, 2009 you are eligible to receive a tax credit up to $7,500 on your next year’s tax refund. This tax credit is actually more like an interest free loan. 2 years after you receive the credit you must start repaying it at a rate of $500 each year. The 1st year in a home can be very financially taxing, usually it takes most of your savings to come up with a down payment and closing costs, then there seems to be an endless list of things you need once you get into your new home. Hoses, lawnmowers, and a personal washing machine are something that most renters don’t think much about, but as a homeowner they become necessities and something the tax credit could help you acquire.
a. http://www.federalhousingtaxcredit.com/index.html
These are just a few of the programs available and just the tip of the iceberg as far as details on each program. If you are thinking about buying your first home give me a call(Jacque Lorang 690-5277) I would be more than happy to help you take the 1st steps and provide you with a packet full of useful information you can use to help on your journey.
*always consult your accountant as to the best program for you.
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