Monday, December 6, 2010

Why you should work with a realtor

Why You Should Work With a REALTOR® when you are buying or selling a home

Not all real estate practitioners are REALTORS®. The term REALTOR® is a registered trademark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION of REALTORS® and subscribes to its strict Code of Ethics. Here are five reasons why it pays to work with a REALTOR®.

1. You’ll have an expert to guide you through the process. Buying or selling a home usually requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multi-page settlement statements. A knowledgeable expert will help you prepare the best deal, and avoid delays or costly mistakes.

2. Get objective information and opinions. REALTORS® can provide local community information on utilities, zoning, schools, and more. They’ll also be able to provide objective information about each property. A professional will be able to help you answer these two important questions: Will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?

3. Find the best property out there. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your REALTOR® to find all available properties. In fact most of the homes you find on line will have incorrect pricing or sold months ago.

4. Benefit from their negotiating experience. There are many negotiating factors, including but not limited to price, financing, terms, date of possession, and inclusion or exclusion of repairs, furnishings, or equipment. In addition, the purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.

5. Property marketing power. Real estate doesn’t sell due to advertising alone. In fact, a large share of real estate sales comes as the result of a practitioner’s contacts through previous clients, referrals, friends, and family. When a property is marketed with the help of a REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.

6. Real estate has its own language. If you don’t know a CMA from a PUD, you can understand why it’s important to work with a professional who is immersed in the industry and knows the real estate language.

7. Experience. REALTORS® have done it before. Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase. And even if you’ve done it before, laws and regulations change. REALTORS®, on the other hand, handle hundreds of real estate transactions over the course of their career. Having an expert on your side is critical.

8. Buying and selling is emotional. A home often symbolizes family, rest, and security — it’s not just four walls and a roof. Because of this, home buying and selling can be an emotional undertaking. And for most people, a home is the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you stay focused on both the emotional and financial issues most important to you.

Saturday, April 3, 2010

FHA Changes effective April 5, 2010

When buyers are approved for FHA home loans, they are required to carry mortgage insurance. That includes both a Mortgage Insurance Premium (MIP) and an Up Front Mortgage Insurance Payment (UFMIP). The Upfront Mortgage Insurance Premium payments go into an escrow account set up by the U.S. Treasury Department and the funds are used to protect the government in case the borrower defaults on the FHA loan.

In the past the UFMIP on some FHA loans was as low as 1.5 percent, but effective April 5, 2010, the FHA has new amounts for Up Front Mortgage Insurance Premiums on many traditional and refinance loans from the FHA.

If you do not have a case number on your loan by April 5, 2010, FHA will collect an upfront mortgage insurance premium of 2.25%. This change means an increase in premiums for those looking for purchase money loans, plus existing FHA mortgage holders interested in refinancing. The increase affects FHA-to-FHA and “non-credit qualifying” refinancing.

HUD Home For Sale: 4BR/2+1BA Single Family House in Canal Winchester, OH, $128,000

For Sale: 4BR/2+1BA Single Family House in Canal Winchester, OH, $128,000

HUD Home For Sale: 4BR/1+1BA Single Family House in Canal Winchester, OH, $92,000

For Sale: 4BR/1+1BA Single Family House in Canal Winchester, OH, $92,000

HUD Home For Sale: 3BR/2BA Single Family House in Blacklick, OH, $112,000

For Sale: 3BR/2BA Single Family House in Blacklick, OH, $112,000

HUD Home For Sale in Worthington Schools: 3BR/2BA Single Family House in Columbus, OH, $126,000

For Sale: 3BR/2BA Single Family House in Columbus, OH, $126,000

Wednesday, January 20, 2010

FHA announces significant policy changes

This is important news for first time home buyers or other buyers who will be using FHA to finance their next home!! Listen up and read this.....

The Federal Housing Administration (FHA) insures about 30 percent of new loans, and its health is vital for the housing market. But as foreclosures have risen, the government agency has seen its losses rise and its reserves sink below the minimum level required by Congress. According to the Mortgage Bankers Association (MBA) more than 18 percent of FHA borrowers are at least one payment behind or in foreclosure, compared with 14 percent for all loans. In addition, some unscrupulous operators have shifted their business to the FHA after the subprime business went bust. Last week, the FHA served subpoenas on 15 mortgage companies with suspiciously high default rates for FHA loans, part of a broad crackdown on dubious lenders. To address the problems, the FHA announced policy changes designed to more revenue into the agency, while at the same time keeping loans available. The changes include: 1) homebuyers will Pay an upfront mortgage insurance premium of 2.25 percent of the
total loan amount, up from the current level of 1.75 percent. FHA officials also plan to ask Congress to increase the maximum annual premium that FHA can charge. Borrowers will still be able to wrap these fees into the total amount borrowed. 2) homebuyers will need a credit score of at least 580 to qualify. Borrowers with a score lower than 580 will need a down payment of at least 10 percent. There is also talk that the down payment guidelines maybe changing! As of today a buyer needs 3.5% down. A new bill was just introduced changing this to 5% down!!

It is time to get off the fence before it is to late. This will people a lot of potential buyers out of the market completely!!