Homefinding Book

Since most people only buy a house one time in their lives it is understandable that the average person doesn’t have a lot of experience obtaining home financing. You will find commercials and advertisements all over the place encouraging you to get your home financing with this or that mortgage company. So how do you know, which one will have your best interest at heart and give you the financing you need to get you in the home of your dreams today.

Know Where Their Loyalties Lie

The first thing you need to know about mortgage brokers, lenders, and finance companies is that their loyalties are to themselves. They are not interested in your personal situation, the future of your family, or any of the dreams you have for the members of your family. They are interested in getting a commission check. Don’t for one second make the mistake of thinking that they are in business to help you.

Once you have that firmly in mind you can move on to more important information about getting the home financing you need. The bottom line is that these people are in business to make money not to give it away. This is especially true in light of recent upheavals in the mortgage lending industry. New requirements are stricter than in years past but it is still possible to get a home mortgage with a reasonable credit record.

You Better Shop Around

Interest rates are king when it comes to getting a mortgage. Even fractions of percentage points can add up when you are talking about hundreds of thousands of dollars in home loans over the course of 30 plus years. You want the lowest interest rate possible and may need to shop around to get the interest rate that will serve you best. Check out Lending Tree for some of the best rates in the business.

Don’t fall for enticing incentive offers like free vacations or even free flat screen televisions. The price you will end up paying for them when all is said and done will be much greater than their worth if you aren’t getting the lowest interest rate available along with these exciting incentives.

Know the Lingo

It is vital that you understand the basic lingo of loan speak in order to insure that you are not getting a sour deal with your mortgage. You will hear all kinds of new words when you discuss your borrowing options.

You need to know that an ARM loan stands for an adjustable rate mortgage that can end up costing you much more money than you would have ever anticipated. You should also know that an adjustable rate mortgage is almost never beneficial to home owners.

What you need instead is a fixed rate mortgage. A fixed rate mortgage will not change when the interest rate does.

Private mortgage insurance, also referred to as PMI is an insurance that you must purchase unless you make a rather sizable down payment. This protects the lending institutions that extended you credit from the full force of their potential loss and will need to be included in your budget.

Getting the financing you need to buy a new home doesn’t need to be rocket science. Lenders like Lending Tree are names that you can trust in the world of frightening finances. But also taking the time to learn a few basic things about the process though can save you time and money while relieving some of your concerns. Keep these things in mind when checking out options for lenders and find the lender that you feel is going to go to bat for you more than any others.

You will come across many things when buying your first home that will have you scratching your head. Finding the value of your home before you buy shouldn’t be one of those things. Unfortunately, for many buyers this is one of the most difficult things to come across. There are many reasons for this not the least of which is that there really are not set values for a home.

The value of a home is something that can fluctuate from day to day, person to person, and situation to situation. Most people find that the actual appraisal value of their home for the purpose of a mortgage does not reveal the same numbers that are assigned to the value of the property for the purpose of property taxes.

With such wide discrepancies in value, how can you know if you are bidding too little or too much on any given property? Ultimately, the house is worth what you would be able to sell it for if you needed to get out from under the note suddenly. You need to be able to get at least a general idea of the actual worth of the home you are considering before you can place a realistic bid on the house.

Realtors

This is where it pays to have a working relationship with a great Realtor. While it is very unlikely that the Realtor can tell you exactly what a house is worth, he or she can pull comparisons -otherwise known as comps - of similar sized and aged homes in the area. This will give you a good general idea of how much the house is worth and you can use other factors such as condition, upgrades, etc. compared to the other homes to determine whether you feel comfortable offering more or less on the house you are considering.

Appraisers

You can have an appraisal made. It is important to remember that appraisals are generally made so that the banks are confident lending the money so that you can make the purchase. In other words, they are not always the most reliable source for obtaining the actual market value of your home. They are not going to be significantly higher than the actual value of the home in general. There are occasions though when you are purchasing the home for an incredibly low bargain rate that the appraisal will reveal a lower market value for the home than you expect. If this happens, make sure you keep other resources in mind before you decide to pass on the house as a result.

There is also the option to have an independent appraisal made. This will not be at the behest of the bank and may give you are more unbiased value. The problem with an independent appraisal is that it can be quite costly. However, if you are preparing to make improvements to the home or feel as though you need an absolute value this is a way to get an honest estimate for the home’s value.

Internet Resources

There are websites that will compare your home to others that have recently sold in your neighborhood and give an estimated market value for your home as well. One of the best in the business for delivering accurate results is the free estimator at Homegain. These websites use a number of formulas to determine this market value and are fairly accurate, all things considered.

The drawbacks to these types of services is that markets trend up and down quite regularly making the data a little bit dated in some cases. Another drawback is that these websites are limited in the areas they service to larger cities and may not work in the city you are buying a home just yet.

It always comes down to the value you place on a home more than anything else. Chances are that if you really want a particular home you will do everything in your power in order to make that home work for you -as long as you can get the financing you need to buy the home. If you are purchasing a foreclosure they will rarely be sold for more than their current market value unless you live in an artificially inflated market or are facing tremendous competition for limited housing options. Be sure you always check your estimates against the numbers at Homegain  though before you decide a home is or is not worth the investment.

If you are considering buying property today it’s unlikely that you haven’t heard a great amount about buying foreclosures. News about this type of home purchase seems to be all the rage these days. The only problem is, no one really bothers to explain what a foreclosed property really is or where to find them.

When you consider foreclosures for your next property investment or the place you and your family will call home there are some things that are important to know. The first thing you need to know is that there are some places that are better than others for finding great foreclosures almost anywhere. Three of the best are: Bargain.com, Foreclosure.com, and RealtyTrac.com . Be sure to check them out today for some amazing prices on stunning homes in your area.

Make Banks Take Your Bid Seriously

When it comes down to it, banks prefer to make foreclosure sales as quick and painless as possible. There is often a great amount of interest in exceptional bargains so you need to have every edge you can manage in order to stand out among the other offers without paying extra for the privilege. The goal, after all, is to buy a home for a bargain rate.

How do you get noticed? The first step would be to have either cash in hand and a statement saying as much when you make the offer or a letter of pre approval from a lending institution.  Banks tend to lend more weight to offers they are confident have the financial means to deliver. The reason for this is simple. The closing process can take months with inspections, repairs, and appraisals.

Every month that the house is owned by the lending institution is a month that they are paying expenses on that property. In other words, it is costing them money that can’t be recovered so the quicker the property sales the better. Those who have guaranteed funding are less likely to have delays for the purpose of financing making them better candidates. Even better, in some instances, than those who offer a higher price without preapproved loans to go along with their offer.

Look for the Other Shoe

The other thing you need to know when buying a foreclosed property is that there is no such thing as a guaranteed deal. It is up to you to do a little research on the area, the value of the property, the structural integrity of the property, and whether or not you are getting a good deal. Only you can decide if you are willing to pay the asking price. In addition to that no one other than you can determine if the estimated cost of repairs is going to be significant enough to make you think twice.

It is always best to enter into negotiations with both eyes wide open. Make sure that you have a proper inspection and appraisal so that there are no rude surprises when you are trying to move in and so that you have a good idea of what lies ahead as far as construction projects.

Prepare to Walk Away

Perhaps the most difficult thing about bidding on foreclosures is the necessity of being willing to walk away if the deal goes south. Chances are you are making an offer on a house that you feel some sort of emotional attachment to. No one wants to call a house home if there isn’t some sort of connection in place.

This is where so many would be buyers get locked into bad deals. Don’t become a victim of a deal gone wrong and pay more than you should for a foreclosed property. Be willing to walk away if you aren’t getting the deal you need to in order to be comfortable and confident about your purchase.

When you are buying foreclosed properties there are many bits and pieces of advice that will be extremely helpful. You need to know the information mentioned above though in order to insure that you get the best possible deal for your efforts.

Whether you use Bargain.com, Foreclosure.com, and RealtyTrac.com you should feel confident that you are working with the best in the business to find foreclosures in your area that are up to date and accurate, fast.

Buying a new home is something that most people do very rarely. One reason is that the price of the average home is somewhat prohibitive to the average budget. With this in mind, it is often helpful to get a little inside advice when it comes to finding great deals or exceptional values so that you can get a great deal on your new home.

Check out Foreclosures

Foreclosures are homes that have been reclaimed by a lending agency. The main reason for this is that the borrower fell significantly behind on payments and was unable to make satisfactory arrangements with the lender to pay the debt. Some states allow foreclosures after one missed payments though most allow some latitude.

Foreclosures are generally sold for the amount that was owed to the bank rather than how much the home was worth. This means that you can find significant bargains by purchasing foreclosures if you find the right home at the right time.

These homes are often good homes in nice neighborhoods that have been well loved and cared for by owners that have fallen upon hard times. They may need minor cosmetic repairs or might possibly require some serious work in order to get in tip top shape. The bottom line though is that the money you save on the home and in interest over the years is well worth a little extra elbow grease to make it pretty.

Where Can You Find Foreclosures?

There are plenty of excellent websites such as: Bargain.com, Foreclosure.com, and RealtyTrac.com that will point you in the right direction when seeking foreclosures in your community. You can also find excellent foreclosures by working hand in hand with a local Realtor. Wherever you turn for direction while looking for bargain homes, it is a good idea to always follow through with the basics of home buying.

If you fail to do so, you may discover all too late that your bargain home isn’t the bargain you believed it to be. Not all foreclosures or homes that are selling below market value are money pits. They are common enough though that it is a good idea to be prepared and rule out the potential ahead of time whenever possible. This means that you should have qualified inspections and appraisals made before making your bid or at the very least make your bid on a foreclosure contingent upon the outcome of any inspections.

Most foreclosed properties are sold as is. Lending agencies want these homes to sell as quickly as possible with as little bargaining as possible. You will need to decide once the inspections have been made whether you are interested in continuing with your original bid or wish to walk away from the house. If you have the skills needed to make the repairs yourself or want to make changes that will compensate for the needed repairs you just might find that they aren’t worth walking over. If you do not know the difference between a drill bit and a drill press it is in your best interest to make sure you budget professionals in you monthly payment plans.

Regardless, of where you find your bargain homes, you should make sure you get your money’s worth from your home in the end. Negotiate the best deal possible on your home with the lending agency and you should have a true bargain to call home sweet home. Before you buy anywhere though it’s a great idea to see what’s available through RealtyTrac.com, Foreclosure.com, and Bargain.com. You never know what gems are waiting for you on these sites or hen you may find the home you’ve been searching for.

Working with a Realtor can be intimidating if you’ve never purchased a home before. It is important to have a qualified Realtor as he or she has vital experience taking the steps and making the contacts that the average home buyer is never likely to have.

You need to know how to work with your Realtor in order to make the relationship a mutually beneficial relationship and to save yourself a few headaches throughout the home buying process. When you make the things below a priority you will enjoy a much more pleasant overall home buying experience.

Establish a Budget

You need to know how much house you can afford. This step goes beyond simply getting preapproval for your home loan but extends to establishing a monthly budget that you are comfortable spending month after month. There are more expenses that go into purchasing a home than principle and interest.

Some of the additional expenses you need to include in your budgeting include private mortgage insurance -unless you have a significant down payment, home owner’s insurance, property taxes, and money set aside to cover emergency repairs that are often needed as well as improvements you’d like to make to the home you purchase.

Your budget needs to also allow a little breathing room when considering other expenses such as medical insurance, auto insurance, automobile payments, groceries, and utilities.

You will also want to include additional utilities in your budgeting that you may not pay when rental. Common utility expense that are covered in rent are water, gas, sewage services, and garbage collection. Be sure that you plan for these or you may find yourself in over your head all too soon.

Know What You Want in a House

When you are working with a Realtor it is a good idea to remember that there time is valuable, as is your own. Know what you want before bringing them into the picture. In addition to a firm budget you need to know what features are absolutely necessary for you and your family as well as those you’d like.

If you are upfront about the non-negotiable things as well as the features that have a little wiggle room you will save yourself and your Realtor a good deal of time looking at houses that will not work for you and your family. There are many things in life that you can be extremely flexible with, your home needs to be a place where you and your family are comfortable and content.

Stick to Your Guns

An honest Realtor will tell you up front if you are going to have difficulty meeting all your wants and needs in your price range. It is one thing for a Realtor to be honest about what is available in the area and trying to convince you that you want something else in order to sell a difficult piece of property. It helps if you educate yourself to some degree about the local market before deciding to buy a home so that you are aware of the price ranges in the area you wish to buy your home.

If you know that you will not be content without two bathrooms and three bedrooms there is no reason at all to look at homes that offer less than either. Be firm when discussing these things with your Realtor and make sure that he or she understands that a two car garage is preferable but not required and that two bathrooms is not up for debate.

Find an excellent Realtor to help you with your home search today by logging on to HomeGain.com. You will find excellent resources for buying your property as well as a listing of qualified Realtors ready to help you find the home your family has been dreaming of in your area today when you visit HomeGain.com.

Retirees today have a lot of living left to do. In the past they have gravitated to areas where they can settle down to enjoy their golden years. Today retirees are looking for places to hang their hats while they get out and about and kick up their heels. There are several things to consider when deciding on a great community for retirement living. Some of the cities listed below are excellent choices or might inspire you to find similar cities that are appealing to you.

Prescott, Arizona

This city isn’t in the middle of the desert. This city is a little above it all, which means it isn’t recommended for every retiree. Those who have lung and/or heart conditions may want to seek lower elevations for their retirement living. The benefits of Prescott are the small town atmosphere, the close community ties, and the access to modern conveniences along with the temperate climate that is enjoyable year round for most residents.

Venice, FL

It would simply be wrong to mention great retirement communities without bringing up the great state of Florida at least once. Venice, FL is a small Florida town on the Gulf of Mexico that hasn’t become lost in high rise condos and new housing developments. While the population is only around 20,000 there are still plenty to do to keep retirees busy. Among the great activities to enjoy in Venice are golf, social clubs, and active community center, weekly jazz concerts, and an impressive community theater.

San Francisco, CA

This is a town that isn’t often thought of as an ideal retirement community and yet it consistently ranks near the top of countless retirement community top 10 lists. Frisco has much to offer those who are enjoying their golden years. The public transportation is excellent, there is a strong arts community, there are community organizations to join throughout the city, and plenty of excellent shopping, cultural activities, and events throughout the year. The mild climate is another joy to many retirees though it may be a little wet for some. You should also keep in mind that there are plenty of world class medical facilities in San Francisco to keep you in good health to match the good spirits you are sure to enjoy living in this amazing city.

Indianapolis, IN

This is another city that isn’t given nearly enough credit but has much to offer retirees that aren’t ready to relegate themselves to the retirement home. There are excellent community groups and organizations for retirees, plenty of volunteer opportunities, an impressive arts community, museums, and sporting events to keep retirees quite active in their retirement. More importantly, Indianapolis promises a taste of all four seasons but hits on the milder side of them all.

Whichever city you decide to call home when you retire is sure to have much to offer. The one thing that is important to remember is that retirement is what you make of it. If you want to spend your golden years deep sea fishing you will never be happy in the middle of a cornfield. If these retirement cities aren’t interesting to you then perhaps they will plant the seeds for a city that is.

It seems like such a simple process until you are faced with the first time purchase of a home. There is much more involved than boy and girl meet house. Boy and girl buy house. Boy and Girl move in. It would be nice if it were always that simple. In truth there are many steps that go on behind the scenes in order to make the sale of a house go smoothly. The problem is that buying a house isn’t something that the average person has the opportunity to practice on before the time arrives. If you follow this guide though you can save yourself a bit of heartache and several really large headaches throughout the home buying experience.

Pre-Qualify for a Loan

Do this before you ever look at a house that you are interested in buying. This helps you avoid looking at homes you can’t get approval for, gives you a guideline to follow as a potential budget, and saves your from finding out after making an offer and paying earnest money that you can’t get approval for a loan. You aren’t married to a company when you get pre approval but sellers will add more weight to your offer if you are pre approved for the amount you offer than if you are not.

Establish a Budget

After you’ve been pre qualified sit down with pen and paper and figure out how much you can really afford to take on each month as far as the total package goes. Keep in mind that there will be private mortgage insurance (assuming you don’t have 20% or more for a down payment), home owner’s insurance, property taxes, maintenance fees, and additional utilities related to home ownership that you aren’t accustomed to paying each month in addition to the principle and interest payments that will be due. Make sure you aren’t setting yourself up for failure and taking on more house than you can really afford. Once you’ve established your budget you have a clear view of the price range you can handle.

Find a Realtor and View Houses

Make sure that the houses you are checking out work within your price range. If your Realtor consistently shows you houses that are outside of your price range or do not match with your requirements (number of bedrooms and bathrooms, special features, etc.) then you may want to find one that will. Once you find a house that you are interested in plan another visit. Never make an offer on the first visit.

Make an Offer

Expect a counter offer but make an offer on the house you are interested in purchasing. Some sellers require earnest money to go along with the offer so be sure you have budget for this possibility. It is important to make your offer contingent upon the results of an appraisal and inspection. You also need to schedule them both as soon as the offer is accepted.

Buying a house is rarely a one step process. These steps are only the beginning. There is a lot of negotiations involved in the typical real estate transaction and there are times when a deal falls through at the last minute. If that happens to you begin the process over again and keep the things you learned during the last transaction in mind for the next one.

Buying a home can be one of the most exhilarating and challenging experiences of a lifetime. Most people do not buy homes often so it is a good idea to seek the help of a few experts along the way before buying a home. In fact, failing to do some things before you buy can cost you a great deal of money and save quite a few headache remedies along the way. Make sure you do the following things in order to avoid big trouble down the road.

1. Establish a budget that is achievable. If you’ve never owned a home before you may not realize some of the expenses that go along with home ownership. You need to budget money each month for your house note, private mortgage insurance, home owner’s insurance, property taxes, and potential repairs and improvements that will need to be made quickly after moving in. You also may be responsible for some utilities that are generally included in the cost of rent when you buy such as water, garbage collection, and sewage services. Many banks will approve buyers for more money than you can realistically afford to repay. You need to be aware of the state of your finances and make sure that you don’t over borrow simply because you can.

2. Inspections. You absolutely need to have a full home inspection before you buy and any offers you make need to be contingent upon the results of the inspection. An inspection is not an absolute guarantee that there will be no problems with the home you are considering but can identify of many potential problems so that you know to adjust your bid on the home accordingly.

3. Appraisal. Most banks won’t lend money on a home until you have a proper appraisal. This generally works in your favor though because an appraisal is designed to insure that you do not pay more than the value of the home. If the home does not appraise at the asking price or the price of your offer you will need to adjust your offer or rethink the offer all together.

4. Estimate for repairs. One other thing you will need before you buy a home is an estimate for the cost of repairs. You can use these estimates to lower the buying price of your home or to secure credit from the seller for the cost of those repairs. Needless to say they can be excellent bargaining tools or they may tip the scales in a manner that makes the house an unfavorable investment. Remember that you need to be able to afford to stay in the house you buy not just get in it.

There are other things you will want to do before you buy but if you take care of these things you are much more likely to have a better overall buying experience and be able to manage to keep your home in a market where so many others are losing the homes in which they have placed many of their dreams.

Money Magazine recently published a study that shows Cincinnati is one of six cities where property values are most likely to rise and least likely to decline over the next 12 months. Buying a home today in Greater Cincinnati makes good financial sense. Why? Three key reasons:

1) Great Inventory. Anyone looking for a home today will find a tremendous selection - nearly 16,000 properties are listed in the Cincinnati MLS. Whether you’re looking for a starter home, a high-end custom home or something in between, you’ll find just the home you’re looking for.

2) Low Interest Rates. Mortgage rates determine how much you can afford. With the current low rates, you have significantly more buying power. How low are rates today? Those who bought a home in 1963 were paying roughly the same rate as you’ll pay today. The rates won’t stay this low forever. Buying a home now can save you thousands of dollars in interest.

3) Home Ownership Will Always be a Good Investment. Even if you are on the fence for now, that’s OK. There will be plenty of opportunities to buy a home when you’re ready. Home ownership is a vital engine in the American economy. It creates strong communities and builds wealth for families who buy homes. Home ownership won’t go out of style. Home owners are invested in our communities. They are the joiners, fixer-uppers, and watchdogs that make our nation strong. Nine out of 10 consumers consider home ownership to be a sound financial decision. Purchasing a home is a great way to invest your money. In the past 40 years, real estate has delivered the most consistent positive return over any investment. When you are buying a home, you are building equity and adding to your assets.

Buying a house at any stage in life can be a challenge. If you have questionable credit, buying a house is difficult at best and for some seams nearly impossible. You’ve probably watched countless seminars that tell you it is possible to buy new houses with no money down or terrible credit and while it is possible, recent changes have made it exceedingly difficult. The good news is that there are still options for those who have less than perfect credit.

What are these options?

Credit Repair

This option is often a little more time and effort consuming than most people desperate to move into their first home like to consider but in the long run is the most rewarding. If you make a concentrated effort to repair and/or restore your credit while avoiding further credit problems you should see better results than you will from all other options. The rewards of good credit are many. Not only will you be more likely to qualify for a traditional mortgage but you will also be in a better position to receive an attractive interest rate. The interest rate is what most impacts the final price you will pay for your home and the lower this number is the better for you.

Lease Option

A lease option gives you the opportunity to build up a down payment for your home while living in the home. These arrangements are becoming more common as investors see the benefits of such an arrangement. What this means for you is that you will have a set period of time that is agreed upon in advance (generally no longer than two years) to repair your credit and obtain financing for the home at a specified price. You will live in the house during this time and have various responsibilities for the repair and upkeep of the home according to the contract you both agree on. The benefit of this to you is that a portion of the lease (again it will be an agreed upon amount) you pay each month will be set aside into an escrow fund that will count towards your down payment at the end of the contract period. If you do not manage to get the financing the portion of funds will return to the home owner and you are free to work out an additional contract or seek other options.

Rent to Own

The most attractive to many who are facing financial woes and living with questionable credit is a rent to own situation. These are not often as attractive as they may appear at first glance but do provide benefits if you are willing to pay a hefty price for your slice of the American dream. One thing to keep in mind is that you will often pay either more than the general market value for the home in question or a higher interest rate than is generally charged by lenders. The benefits though are immediate and you can begin working towards home ownership immediately. The terms are generally iron clad though and you must make timely payments every month in order to continue the path to home ownership or face serious consequences and/or setbacks.

It is possible to buy a home for you and your family – even if your credit isn’t the best. It is much better though to sort out your credit issues before purchasing a home because there are invariably new and unexpected expenses that go hand in hand with home ownership.