Finding a home and negotiating a price is only half the battle when it comes to home ownership. In fact, it’s probably the easiest part of the whole process, especially for those who are relying on a mortgage to fund their new purchase. Once you have negotiated a price and signed the contracts, you are [...]
If you are pondering whether or not now is a good time to buy a home, there is plenty of assistance out there to help you make a decision. One of the best sites is that provided by the Federal Government’s Department of Housing and Urban Development (HUD). This site has a wealth of information [...]
While home sales are languishing and home sellers are struggling to get people to even look at their home, let alone buy, the rental market is exploding. It is estimated that 10 million home owners will move into the rental market by 2015, and the market is running out of suitable homes to rent. Rents [...]
Buying a home is one of the biggest decisions anyone make in their life. There are a lot of factors that go into making that final decision, many of them financial. If financial issues are important, can your decision be influenced by sweeteners? What are sweeteners? Sellers, and sometimes a seller’s real estate, will offer [...]
One of the major factors affecting the real estate market at present is the number of foreclosed, short sale, and real estate owned (REO) stock available. These properties produce two downward affects on prices – they increase the number of properties available for buyers to choose from and they are generally priced below current market [...]
Home buyers are always trying to push the closing price of a home as far down as possible. What some buyers don’t realize is that some prices have been squeezed as far as possible. This is not because of stubbornness on the seller’s behalf, but because their hands are tied as well. For some home [...]
If you are buying a home and you are financing that home through a mortgage, then you will need to take out lenders title insurance. This is insurance that covers the lender should any problems arise over the homes title. As a buyer, you also have the option of including buyers title insurance, the cost [...]
When buying a home outside Virginia or Maryland, you will need to check with the seller to determine if the home is being sold encumbered with private transfer fees. Many states have banned this practice, including Virginia and Maryland, however, there are twenty states that have not as yet gone down this path, particularly in [...]
Low ball offers are fairly commonplace at present. When looking to buy a home, some buyers are looking at listing age and then making low ball offers on those homes that have been on the market for lengthy periods. Offering 25% below listing price is rarely acceptable – you’re just asking for a refusal. When [...]
There is a new product on the market that may appeal to those about to purchase their next (or first) home. Home equity insurance is designed to protect home owners against any future losses of equity due to a fluctuating real estate market. You can be protected by up to 20% of the homes purchase [...]
First home buyers appear to be over-represented when it comes to mortgage failures and foreclosures. For many couples, the loss of the first home can be a dream-shattering experience, and one that sours them for home ownership for many years. If you are a first home buyer, it is important to look at why you [...]
When looking to buy a home, you have a number of options. You can buy a detached home with plenty of room for lawns, gardens, and a child’s play area; or you can buy a condo, which has little or no ‘green’ space. Other alternatives include townhouses that, when it comes to ‘green space’, sit [...]
We get a lot of readers to this blog and many of them leave comments. I would be interested to hear what your best home buying tip was. Ours is very simple – buy below your means. It may sound too simple, yet we see so many people, especially young first home buyers, who get [...]
The current housing situation is such that banks are becoming over-burdened with foreclosed real estate stock. This leaves those banks in a difficult situation as they are not only looking at losing money on the sale of that real estate, there are ongoing costs associated with keeping it. Banks are also aware that flooding the [...]
If you are considering buying a home within the next six months, take a tip from the wise and experienced – organize your finances first. Trying to organize your finances once you have had an offer accepted is a recipe for disaster. Once an offer is accepted, you are in contract to continue through with the [...]
When looking for a home to buy, the smartest move is to engage a real estate agent to help you through the process. But what is that real estate agent’s role? It’s an important question and one you should ask an agent before engaging them. The one thing a buyers real estate agent shouldn’t be [...]
Buying a home can be one of the most stressful experiences that anyone can go through. It can also be a walk in the park with hardly any stress at all. There are several areas where things can go wrong. The home appraisal may not meet your offer, making a mortgage difficult; the home inspection [...]
Lenders are being extremely cautious in today’s real estate market. Five years ago lenders were offering ridiculous loans to home borrowers, often in the knowledge that a sudden downturn could see those home borrowers in deep trouble. That downturn came and now we have the reverse, well credentialed people struggling to find a mortgage lender. [...]
You would think that, after a few hundred years, land titles and property deeds would be fairly accurate. In most cases, the titles themselves are accurate. It’s we humans who aren’t. I recently read a story about a parcel of land that had been sold. When it came to surveying the land prior to building, [...]
Virginia, Maryland, and Washington DC have not been immune to the recent crisis in our economy. Maryland has experienced both the highs and lows of the boom-bust cycle while Washington DC has taken a hard hit. Renting in Washington DC is now quite difficult and rental prices are high. Of the three, Virginia has continued [...]
There are a lot of couples, particularly young couples, who are currently caught in a rental trap. The cost of renting is such that saving to buy a home is almost impossible, yet a mortgage would most likely cost them no more than their current rental payments. Here are a few tips that may help [...]
Many mortgages today are being resold in the secondary markets. The Federal National Mortgage Association (Fannie Mae) is a government-sponsored organization that purchases mortgages from lenders and sells them to investors. Mortgages that conform to Fannie Mae’s standards may carry lower interest rates or smaller down payments. To qualify, the mortgage borrower needs to meet [...]
Trends come and trends go. But, what do mortgage shoppers need to know about rates as they look into the future? It’s impossible to pinpoint a single factor that causes mortgage rates to move up or down. Still, mortgage experts often have observed that fixed-rate mortgage rates typically follow the direction of long-term Treasury rates. [...]
What? A 40 year mortgage? It’s true. A 40-year mortgage can make your monthly house payment more affordable. But mortgage brokers say such long-term loans generally aren’t the best choice for most borrowers because they typically come with a higher interest rate and cost more in interest over the lifetime of the loan. This trade [...]
There’s a new wrinkle in the way people obtain home mortgages. Many new and creative financing methods are available to help people afford their dream home. But some of them include hidden risks that can make them a potential time bomb for the home owner. And this type of mortgage could be one of them. [...]
What percentage of your income is actually calculated into your mortgage payments? Here’s a rule of thumb that’s grounded in practice. Mortgage lenders have a standard called the “front ratio” that measures your mortgage expense – principal, interest, taxes, and insurance, or PITI – as a percentage of your gross monthly income. It’s typical for [...]
Real estate agents routinely suggest that consumers start their mortgage process well before bidding on a home. By meeting with lenders – either online or face to face – and looking at loan options, you will find which programs best meet your needs and how much you can afford. This process will get you pre-approved [...]
When getting a loan for a mortgage, the person or persons who are actually qualifying for the mortgage must have decent credit scores. However, if your wife’s credit score, for example, is poor and yours is good, do you absolutely need her credit counted towards the mortgage? If you don’t need her income to qualify [...]
If you’re a veteran buying a home, and looking to get a good deal on a mortgage, a VA (Veterans Affairs) mortgage loan may be what you are looking for. The loans, guaranteed by the federal government, are available through local banks and mortgage brokers around the country. To be eligible, you must be an [...]
It may be difficult to repair your credit after a bankruptcy, but there are certainly steps to take to put you in better credit standing. getting yourself debt-free is the first step. The second thing to do is to obtain some type of credit. Department stores, jewelry stores, and secured MasterCard and Visa accounts are [...]
