Many of the challenges homeowners and home buyers are confronting today are the result of unscrupulous mortgages extended over the past several years. Help protect yourself during the home buying process with these tips from the American Homeowners Foundation and the American Homeowners Grassroots Alliance, www.AmericanHomeowners.org, or in Canada, with tips found at www.genworth.ca:
1. Deal only with reputable mortgage bankers or mortgage brokers. Get recommendations from neighbors and friends who dealt with them as customers. Check on the mortgagor's record with the local Better Business Bureau and state licensing authority. As a Member of the Top 5 in Real Estate Network®, I can also provide you with many credible mortgage resources.
2. Ask how long they have been in the business, and be wary of working with someone with less than five years experience, no matter how reputable their employer may be.
3. Unlike professional real estate agents like myself, mortgagors owe you no fiduciary duty. While it is in the long-term interest of mortgage lenders and brokers to treat consumers fairly, for many, that doesn't stand in the way of charging higher fees or interest rates. Always get quotes from at least three mortgage lenders and/or brokers, and make sure each one knows you are doing so.
4. Since you'll be providing them the most comprehensive personal financial information you'll ever provide any company, ask the lender to describe their data security policies, both online and offline.
5. To reduce the likelihood of overpaying for a home, make sure that you review recent selling prices similar homes in the same neighborhood before you make an offer. I can provide you with a detailed analysis of the homes in our communities.
6. Set aside some extra money for closing costs. One of the vexations of real estate financing are the differences in estimated settlement costs on the Good Faith Estimate (GFE) forms, and the actual settlement costs, which very often include several hundred additional dollars worth of previously undisclosed and creatively named fees.
7. Pick the right kind of mortgage. Interest rates are higher on 30 year fixed rate loans than on 15 year fixed rate loans. Adjustable rate mortgages are always a gamble. You may well save money over the first few years if interest rates are dropping, but predicting their direction further out is very speculative. Prepayment penalties can more than offset any savings if the rates go up after that and you want to refinance.
8. Get pre-approved for your loan. Even though there is a glut of homes for sale in most areas right now, a mortgage loan pre-approval is essential to many sellers, and gives a big negotiating advantage to buyers in almost all cases.
9. It is important to review loan documents in advance and understand all the terms. Don’t be afraid to ask questions. Try to avoid loans with prepayment penalties if at all possible.
10. Save all the copies of all documents you receive and/or provide mortgage lenders or brokers.
For more advice on how to secure the best mortgage in today’s challenging economic times, please e-mail me directly. I can help you make sense of the current mortgage landscape and the ever-changing credit standards. Also, if this information can be of benefit to your friends and family members, please feel free to forward this email to them.
Sincerely,
Maria A. Gomes
Maria Gomes
EXIT Exclusive Realty
Top 5 in Real Estate Member
MGomes76@hotmail.com
www.ExitExclusiveRealty.com
Friday, July 31, 2009
Friday, July 24, 2009
Top Remodeling Projects for Boosting Your Home's Value
Whether you are thinking about putting your home on the market or you are concerned about increasing your home's equity in a time of depreciating house values, knowing which remodeling projects yields the best return on investment, is critical.
Not all home remodeling projects are equal in terms of ROI, however. Here are the National Association of Home Builder's suggestions for the best ways to add value to your home:
* A Home Office Remodel *
With more and more people telecommuting in today's difficult business climate, home offices are becoming less of a luxury and more of a necessity. Creating a state-of-the-art space for potential teleworkers is a surefire way to increase your home's value.
* Renovate or Add a Family Room *
A family room is an excellent way to make existing homes more like new construction. Take into account what homes in your area are like. People like to purchase homes that blend with other homes around them.
* Replace the Roof *
The roof is one of the first impressions people have of a home. Replace an old roof or change the character of your home by looking into architecturally styled roofing tiles.
* Landscape Your Yard *
Landscaping is also an integral part of your home's first impression. A professionaly landscaped yard adds value to your home and increases your living space.
* Replace Old Windows *
Thirty percent of a home's energy is lost through its windows. Replacing old windows with energy-efficient ones ups the overal quality of the house and saves you money on monthly utility bills.
* Remodel Your Basement *
Do you have space that serves as a black hole of unused items ... like your basement? Remodeled basements make excellent game rooms or guest suites, adding value to your home without adding space.
* Paint, Paint, Paint *
It's been said over and over but can't be emphasized enough. Hire a professional if you need help and keep the colors neutral if you're looking to sell.
* Remodel Your Kitchen *
Kitchens sell a home, and in this case, size does matter. But a kitchen remodel is a long-term investment; you'll see payback 10 years down the road. Sometimes doing it yourself can save money, but always bring in a professional for the big jobs.
* Remodel or Add a Bathroom *
A bathroom remodel can mean making the most of your current space by upgrading fixtures, flooring and lighting. Or add a bathroom and automatically increase the value of your home.
For more information on adding value to your home, visit http://www.nahb.org/remodel, or in Canada, http://www.chba.ca.
As a Member of the Top 5 in Real Estate Network, I am happy to provide specific remodeling suggestions based on your individual needs and home values in your neighborhood. Please e-mail me at mgomes76@hotmail.com for more information or to receive a complimentary copy of Top 5's Home Improvement Q & A Guide. Also, if you feel this article can be of benefit to your family and friends, please feel free to forward this to them.
Sincerely,
Maria A. Gomes
Not all home remodeling projects are equal in terms of ROI, however. Here are the National Association of Home Builder's suggestions for the best ways to add value to your home:
* A Home Office Remodel *
With more and more people telecommuting in today's difficult business climate, home offices are becoming less of a luxury and more of a necessity. Creating a state-of-the-art space for potential teleworkers is a surefire way to increase your home's value.
* Renovate or Add a Family Room *
A family room is an excellent way to make existing homes more like new construction. Take into account what homes in your area are like. People like to purchase homes that blend with other homes around them.
* Replace the Roof *
The roof is one of the first impressions people have of a home. Replace an old roof or change the character of your home by looking into architecturally styled roofing tiles.
* Landscape Your Yard *
Landscaping is also an integral part of your home's first impression. A professionaly landscaped yard adds value to your home and increases your living space.
* Replace Old Windows *
Thirty percent of a home's energy is lost through its windows. Replacing old windows with energy-efficient ones ups the overal quality of the house and saves you money on monthly utility bills.
* Remodel Your Basement *
Do you have space that serves as a black hole of unused items ... like your basement? Remodeled basements make excellent game rooms or guest suites, adding value to your home without adding space.
* Paint, Paint, Paint *
It's been said over and over but can't be emphasized enough. Hire a professional if you need help and keep the colors neutral if you're looking to sell.
* Remodel Your Kitchen *
Kitchens sell a home, and in this case, size does matter. But a kitchen remodel is a long-term investment; you'll see payback 10 years down the road. Sometimes doing it yourself can save money, but always bring in a professional for the big jobs.
* Remodel or Add a Bathroom *
A bathroom remodel can mean making the most of your current space by upgrading fixtures, flooring and lighting. Or add a bathroom and automatically increase the value of your home.
For more information on adding value to your home, visit http://www.nahb.org/remodel, or in Canada, http://www.chba.ca.
As a Member of the Top 5 in Real Estate Network, I am happy to provide specific remodeling suggestions based on your individual needs and home values in your neighborhood. Please e-mail me at mgomes76@hotmail.com for more information or to receive a complimentary copy of Top 5's Home Improvement Q & A Guide. Also, if you feel this article can be of benefit to your family and friends, please feel free to forward this to them.
Sincerely,
Maria A. Gomes
Friday, July 17, 2009
Do You Qualify for the Expanded Home Refinance Program?
The Home Affordable Refinance Progrram, or HARP, established by the Obama Adminstration, has been expanded, raising the maximum loan-to-value ratio from 105% to 125%. As a Member of the Top 5 in Real Estate Network, many clients are asking me if they qualify for the HARP program. If you can answer "yes" to the following questions, you may be eligible:
- Are you the owner of one - to - four unit home?
- Do you have a loan owned or guaranteed by Fannie Mae or Freddic Mac?
("Current" mean that you haven't been more than 30-days late on your mortgage payment in the last 12 months.)
- Do you believe that the amount you owe on your first mortgage is about the same or less than the current value of your house?
Open to homeowners whose loans are owned or guaranteed by Fannie Mae or Freddie Mac, and covering first mortgags only, the HARP expansion means that na eligible homeowner with a $375,000 mortgage loan may now refinance if the house is worth at least $300,000.
The expansion is aimed at making refinancing available to more people whose homes are now worth less than the amount of their mortgages. As always, the borrower must meet income requirements and be able to afford the loan. Homeowners must also be current on their mortgage payments.
As a homeowner, you may be eligible if:
1. You obtained your mortgage before January 1, 2009.
2. The home is owner occupied.
3. The primary mortgage is less than $729,500.
According to the Federal Housing Financing Agency, the higher loan-to-value refinancing will allow more homeowners to strengthen their finances by taking advantage of lower mortgage rates. HARP borrowers will be able to combine a lower mortgage rate with a faster amortization schedule, which will enable them t o get "above water" on their mortgages more quickly.
The program also provides borrowers with an incentive to reducre the term of their loan from 30 years to a shorter-term, fixed-rate mortgage, enabling them to pay down the principal more quickly and reduce lifetime interest payments.
For more information on the HARP program, visit http://www.makinghomeaffordable.gov or e-mail me @ mgomes76@hotmail.com
Sincerely,
Maria A. Gomes
- Are you the owner of one - to - four unit home?
- Do you have a loan owned or guaranteed by Fannie Mae or Freddic Mac?
("Current" mean that you haven't been more than 30-days late on your mortgage payment in the last 12 months.)
- Do you believe that the amount you owe on your first mortgage is about the same or less than the current value of your house?
Open to homeowners whose loans are owned or guaranteed by Fannie Mae or Freddie Mac, and covering first mortgags only, the HARP expansion means that na eligible homeowner with a $375,000 mortgage loan may now refinance if the house is worth at least $300,000.
The expansion is aimed at making refinancing available to more people whose homes are now worth less than the amount of their mortgages. As always, the borrower must meet income requirements and be able to afford the loan. Homeowners must also be current on their mortgage payments.
As a homeowner, you may be eligible if:
1. You obtained your mortgage before January 1, 2009.
2. The home is owner occupied.
3. The primary mortgage is less than $729,500.
According to the Federal Housing Financing Agency, the higher loan-to-value refinancing will allow more homeowners to strengthen their finances by taking advantage of lower mortgage rates. HARP borrowers will be able to combine a lower mortgage rate with a faster amortization schedule, which will enable them t o get "above water" on their mortgages more quickly.
The program also provides borrowers with an incentive to reducre the term of their loan from 30 years to a shorter-term, fixed-rate mortgage, enabling them to pay down the principal more quickly and reduce lifetime interest payments.
For more information on the HARP program, visit http://www.makinghomeaffordable.gov or e-mail me @ mgomes76@hotmail.com
Sincerely,
Maria A. Gomes
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