Posts
Now that you've made the decision to buy your first home, the process of buying a home can be confusing, and complicated. Where should you start?
Find out how much you can afford. To get started with the process, consider getting pre-approved with a lender prior to making an appointment to view homes with a Realtor®. This will give you more leverage when you are ready to make an offer once you've found the house you'd like to call home.
In my blog Common Mistakes Smart People Make When Buying Their First Home , I explain how important it is to decide which lender you would like to work with. Multiple credit inquiries may affect your credit rating and have a negative impact on loan amount, interest rate, etc. Avoid giving your Social Security Number out to several different mortgage companies while shopping for rates.
The Department of Housing and Urban Development offers these free links to calculators that can assist you, but remember, it will be best to visit with your lender to find out for sure.
How much home can you afford?
Buying Vs. Renting
To gain a better understanding of the home buying process, contact me or log-on to my First-Time Home Buyer website http://www.newberghome.com/ for information that will explain the home buying process in simple terms, and show you how I can help make the process of buying your first home a much smoother one.
It's a great day to buy!
Teresa Kolb
http://www.newberghome.com/
e: TeresaKolb@NewbergHome.com
t: www.twitter.com/MyTurn2Own
f: www.facebook.com/TeresaKolb
Monday, August 10, 2009
Monday, August 3, 2009
First-Time Home Buyers | 8 Ways to Improve Your Credit Score
Credit scores, along with your overall income and debt, are a big factor in determining if you'll qualify for a loan and what the loan terms will be.
1. Check your credit annually! Check for and correct errors in your credit report. Mistakes happen, and you don't want to be paying for someone else's poor financial management.
2. Make loan payments on time every month!
3. Reduce your debt! Pay down credit card bills. If possible, pay off the entire balance every month. CAUTION: Transferring credit card debt from one card to another could lower your score. Use credit cards wisely, and only apply for the credit you really need.
4. Don't charge your credit cards to the maximum limit! This will show lenders that you have spending control.
5. Wait 12 months after credit difficulties to apply for a mortgage. You're penalized less for problems after a year.
6. Do NOT purchase big-ticket items for your new home on credit cards until after your home is closed. In addition, don’t apply for a new car loan either! The amounts will add to your debt-income ratio.
7. Don't open new credit card accounts before applying for a mortgage. Even if you don’t have a balance, having too much available credit can lower your score.
8. Shop for mortgage rates all at once. Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time.
For more information go to Knowing and Understanding Your Credit/Fannie Mae Foundation
It's a great day to buy!
Teresa Kolb
http://www.newberghome.com/
e: TeresaKolb@NewbergHome.com
t: www.twitter.com/MyTurn2Own
f: www.facebook.com/TeresaKolb
1. Check your credit annually! Check for and correct errors in your credit report. Mistakes happen, and you don't want to be paying for someone else's poor financial management.
2. Make loan payments on time every month!
3. Reduce your debt! Pay down credit card bills. If possible, pay off the entire balance every month. CAUTION: Transferring credit card debt from one card to another could lower your score. Use credit cards wisely, and only apply for the credit you really need.
4. Don't charge your credit cards to the maximum limit! This will show lenders that you have spending control.
5. Wait 12 months after credit difficulties to apply for a mortgage. You're penalized less for problems after a year.
6. Do NOT purchase big-ticket items for your new home on credit cards until after your home is closed. In addition, don’t apply for a new car loan either! The amounts will add to your debt-income ratio.
7. Don't open new credit card accounts before applying for a mortgage. Even if you don’t have a balance, having too much available credit can lower your score.
8. Shop for mortgage rates all at once. Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time.
For more information go to Knowing and Understanding Your Credit/Fannie Mae Foundation
It's a great day to buy!
Teresa Kolb
http://www.newberghome.com/
e: TeresaKolb@NewbergHome.com
t: www.twitter.com/MyTurn2Own
f: www.facebook.com/TeresaKolb
Monday, July 27, 2009
First-Time Home Buyers | Common Mistakes Smart People Make When Buying Their First Home
From research and experience with First-Time Home Buyers, I have compiled a list of some common mistakes smart people make when buying their first home. This is not an exhaustive list, but I hope it will help you avoid making a few mistakes yourself.
Avoid These Common Mistakes Smart People Make When Buying Their First Home
Mistake #1 Not knowing how much they can afford before they make an offer.
The easiest way to avoid this mistake is to get pre-approved for a mortgage so you know in advance exactly how much you can afford.
Mistake #2 Not realizing in advance whom the real estate broker represents.
When you call the broker on the sign in the yard, that broker is most likely working for the seller (the one paying the commission). So be aware that any information you give that broker may be used against you in negotiations with the seller. The best way to avoid this conflict is to find a broker willing to work with you as a Buyer's Representative. Ask about our Exclusive Buyers Service Agreement and remember this agreement is a binding contract. Always read through a contract carefully and ask questions until you understand every part of the agreement before signing.
Mistake #3 Not discovering hidden defects before they buy a home.
One of the most expensive mistakes is also one of the easiest to avoid, by having a professional do a whole home inspection before buying the home. Even if the home is new construction, we recommend full home inspections to avoid any problems in the future. Be informed. Know what you are buying, from the crawlspace to the roof.
Mistake #4 Giving a Social Security Number out to several different mortgage companies while shopping for rates.
Before you give out your personal information, decide which lender you would like to work with. Credit inquiries may affect your credit rating and have a negative impact on loan amount, interest rate, etc. There is a short window in which you can shop for loans without it damaging your credit rating. Check with your lender concerning this matter. To avoid these mistakes and others, visit my website at http://www.newberghome.com/ for additional First-Time Home Buyer tips and information. I can explain the home buying process in simple terms, and show you how I can help make the process of buying your first home much smoother and less stressful.
Anyone can sell you a house. I’ll teach you how to buy your first home.
-Teresa Kolb
http://www.newberghome.com/
e: TeresaKolb@NewbergHome.com
t: www.twitter.com/MyTurn2Own
f: www.facebook.com/TeresaKolb
Avoid These Common Mistakes Smart People Make When Buying Their First Home
Mistake #1 Not knowing how much they can afford before they make an offer.
The easiest way to avoid this mistake is to get pre-approved for a mortgage so you know in advance exactly how much you can afford.
Mistake #2 Not realizing in advance whom the real estate broker represents.
When you call the broker on the sign in the yard, that broker is most likely working for the seller (the one paying the commission). So be aware that any information you give that broker may be used against you in negotiations with the seller. The best way to avoid this conflict is to find a broker willing to work with you as a Buyer's Representative. Ask about our Exclusive Buyers Service Agreement and remember this agreement is a binding contract. Always read through a contract carefully and ask questions until you understand every part of the agreement before signing.
Mistake #3 Not discovering hidden defects before they buy a home.
One of the most expensive mistakes is also one of the easiest to avoid, by having a professional do a whole home inspection before buying the home. Even if the home is new construction, we recommend full home inspections to avoid any problems in the future. Be informed. Know what you are buying, from the crawlspace to the roof.
Mistake #4 Giving a Social Security Number out to several different mortgage companies while shopping for rates.
Before you give out your personal information, decide which lender you would like to work with. Credit inquiries may affect your credit rating and have a negative impact on loan amount, interest rate, etc. There is a short window in which you can shop for loans without it damaging your credit rating. Check with your lender concerning this matter. To avoid these mistakes and others, visit my website at http://www.newberghome.com/ for additional First-Time Home Buyer tips and information. I can explain the home buying process in simple terms, and show you how I can help make the process of buying your first home much smoother and less stressful.
Anyone can sell you a house. I’ll teach you how to buy your first home.
-Teresa Kolb
http://www.newberghome.com/
e: TeresaKolb@NewbergHome.com
t: www.twitter.com/MyTurn2Own
f: www.facebook.com/TeresaKolb
Wednesday, July 22, 2009
First-Time Home Buyers | 6 Reasons You Should Buy Now
If you are considering buying your first home, you’re probably like most property virgins who have reservations about whether buying and owning a home is right for you.
The more you know about buying your first home, the easier the entire process will be for you.
Here are six great reasons why you should buy a home right now:
Pride of Home Ownership:
This may seem cliché, but pride is the #1 reason people want to own a home. You have the freedom to make the choices you want, whether it is landscaping, wall color, or choosing home décor. Plus, owning a home gives a sense of security, and stability. You are investing in your future, instead of your landlord’s future.
If down payment is a concern for you, there are down payment assistance programs that you might qualify for. Click here for a link to Oregon’s First-Time Home Buyer’s Down Payment Assistance Programs
$8,000 Cash in YOUR Pocket!
Seriously! First time buyers who buy before December, 2009 will receive a lump sum of $8,000 in the form of a tax credit (this could be money in your pocket). For more on the First Time Buyers Tax Credit, click here.
Property Appreciation:
Although the real estate market has been hit hard the last few years, real estate moves in cycles, sometimes up, sometimes down. But even though the value of property fluctuates, historically real estate increases in value over time, and many who purchase their home consider their investment as a hedge against inflation. Buying now, at the low end of the market, virtually guarantees that your home will appreciate over the next few years.
Build Equity:
Each month, part of your monthly payment is applied directly to the principal balance of your loan, which reduces your obligation. Every payment that you make reduces the interest on your loan, and increases the amount that is paid toward your principal balance. As the amount of your interest decreases, and the amount you pay toward principal increases, the amount of equity you have in your home builds. Over time, you will build significant equity (and wealth) just by making your house payment.
Home Owners Are Wealthier Than Renters
Simply put, those who own their own homes build more wealth than those who rent. See what the Federal Reserve Board says. You may be able to own a home for about the same amount you now spend on rent. To see homes you can buy at your current monthly rent, click here.
Tax Deductions:
Real Estate property taxes paid for a first home are fully deductible for income tax purposes. Additionally, many of the costs associated with buying the home are deductible. Mortgage interest is also fully deductible on your tax return, as long as the balance on your mortgage is smaller than the price you paid for your home. Read what the IRS has published regarding tax information for first-time home buyers.
It's a great day to buy!
Teresa Kolb
http://www.newberghome.com/
e: TeresaKolb@NewbergHome.com
t: www.twitter.com/MyTurn2Own
f: www.facebook.com/TeresaKolb
The more you know about buying your first home, the easier the entire process will be for you.
Here are six great reasons why you should buy a home right now:
Pride of Home Ownership:
This may seem cliché, but pride is the #1 reason people want to own a home. You have the freedom to make the choices you want, whether it is landscaping, wall color, or choosing home décor. Plus, owning a home gives a sense of security, and stability. You are investing in your future, instead of your landlord’s future.
If down payment is a concern for you, there are down payment assistance programs that you might qualify for. Click here for a link to Oregon’s First-Time Home Buyer’s Down Payment Assistance Programs
$8,000 Cash in YOUR Pocket!
Seriously! First time buyers who buy before December, 2009 will receive a lump sum of $8,000 in the form of a tax credit (this could be money in your pocket). For more on the First Time Buyers Tax Credit, click here.
Property Appreciation:
Although the real estate market has been hit hard the last few years, real estate moves in cycles, sometimes up, sometimes down. But even though the value of property fluctuates, historically real estate increases in value over time, and many who purchase their home consider their investment as a hedge against inflation. Buying now, at the low end of the market, virtually guarantees that your home will appreciate over the next few years.
Build Equity:
Each month, part of your monthly payment is applied directly to the principal balance of your loan, which reduces your obligation. Every payment that you make reduces the interest on your loan, and increases the amount that is paid toward your principal balance. As the amount of your interest decreases, and the amount you pay toward principal increases, the amount of equity you have in your home builds. Over time, you will build significant equity (and wealth) just by making your house payment.
Home Owners Are Wealthier Than Renters
Simply put, those who own their own homes build more wealth than those who rent. See what the Federal Reserve Board says. You may be able to own a home for about the same amount you now spend on rent. To see homes you can buy at your current monthly rent, click here.
Tax Deductions:
Real Estate property taxes paid for a first home are fully deductible for income tax purposes. Additionally, many of the costs associated with buying the home are deductible. Mortgage interest is also fully deductible on your tax return, as long as the balance on your mortgage is smaller than the price you paid for your home. Read what the IRS has published regarding tax information for first-time home buyers.
It's a great day to buy!
Teresa Kolb
http://www.newberghome.com/
e: TeresaKolb@NewbergHome.com
t: www.twitter.com/MyTurn2Own
f: www.facebook.com/TeresaKolb
Wednesday, July 8, 2009
See Homes You Can Buy at Your Current Monthly Rent
You may be able to own a home for about the same amount you now spend on rent. Simply enter your current monthly payment and the location you want to search. You'll see a list of all the properties in that area that fit within your monthly budget. Homeownership could be just a search away.*Based on a 6% 30 year fixed rate loan with a 20% down payment. Does not include taxes, insurance, utilities and other expenses. Listed only as an estimate.
For the Free Calculator, go to my Website: http://newberghome.com/ and click on the link in the middle of the home page "Click Here to See Homes You Can Buy..."
And as always, I'm here to answer any questions you might have about buying your first home! Email me: TeresaKolb@NewbergHome.com
For the Free Calculator, go to my Website: http://newberghome.com/ and click on the link in the middle of the home page "Click Here to See Homes You Can Buy..."
And as always, I'm here to answer any questions you might have about buying your first home! Email me: TeresaKolb@NewbergHome.com
Sunday, June 28, 2009
Help for First-Time Home Buyers
Housing center helps first-timers
Sunday, June 28, 2009
The Oregonian
The Portland Housing Center steers first-time homebuyers toward a variety of down payments, closing costs and mortgage assistance programs. Most are available to potential homeowners earning up to 100 percent of the metro area's median income ($49,000 for individuals, $70,000 for a family of four).
FHA loans require 3.5 percent down from qualified buyers, compared to the 20 percent usually required for conventional loans. PHC works directly with lenders to offer a variety of low-cost, fixed-rate mortgage products to first-time buyers.
Mortgage Assistance Programs provide low-interest loans of up to $50,000 for down payment and closing costs by qualified buyers in Multnomah and Washington counties.
The Matched Savings Program helps first-time buyers save for a down payment and closing costs by matching up to $3 for every $1 saved up to $9,000.
The Home Purchase Assistance Program gives first-time buyers a zero-interest loan of up to $1,500 toward down payment and closing costs, repayable when the property is sold or refinanced.
Down Payment Assistance Loans, available for select urban renewal areas through the Portland Development Commission, are essentially "silent second mortgages" that reduce monthly payments. DPAL loans must be repaid when the home is sold.
Home Buying 101: PHC offers a free HUD-certified class to prepare and educate first-time homebuyers. The PHC's free homebuying orientations, held three times a month, familiarize participants with the center's services and first-time homebuyer resources. Orientations are held from 6-7 p.m. the first three Wednesdays of the month at the housing center at 3233 N.E. Sandy Blvd.
For information, call the Portland Housing Center at 503-282-7744 or visit http://www.portlandhousingcenter.org/.
-- Jeff Kuechle
Sunday, June 28, 2009
The Oregonian
The Portland Housing Center steers first-time homebuyers toward a variety of down payments, closing costs and mortgage assistance programs. Most are available to potential homeowners earning up to 100 percent of the metro area's median income ($49,000 for individuals, $70,000 for a family of four).
FHA loans require 3.5 percent down from qualified buyers, compared to the 20 percent usually required for conventional loans. PHC works directly with lenders to offer a variety of low-cost, fixed-rate mortgage products to first-time buyers.
Mortgage Assistance Programs provide low-interest loans of up to $50,000 for down payment and closing costs by qualified buyers in Multnomah and Washington counties.
The Matched Savings Program helps first-time buyers save for a down payment and closing costs by matching up to $3 for every $1 saved up to $9,000.
The Home Purchase Assistance Program gives first-time buyers a zero-interest loan of up to $1,500 toward down payment and closing costs, repayable when the property is sold or refinanced.
Down Payment Assistance Loans, available for select urban renewal areas through the Portland Development Commission, are essentially "silent second mortgages" that reduce monthly payments. DPAL loans must be repaid when the home is sold.
Home Buying 101: PHC offers a free HUD-certified class to prepare and educate first-time homebuyers. The PHC's free homebuying orientations, held three times a month, familiarize participants with the center's services and first-time homebuyer resources. Orientations are held from 6-7 p.m. the first three Wednesdays of the month at the housing center at 3233 N.E. Sandy Blvd.
For information, call the Portland Housing Center at 503-282-7744 or visit http://www.portlandhousingcenter.org/.
-- Jeff Kuechle
Monday, June 22, 2009
REALTOR® Magazine-Daily News-Home Buyer Tax Credit Could Expand
A first-time home buyer tax credit of up to $8,000 has helped to move housing inventory during an otherwise sluggish real estate cycle. Now both legislators and the business community are hoping to build on the incentive's success by expanding it. A number of bills have been introduced in the House and the Senate that lobby for an expansion of the measure. Among the proposed changes:
Setting a new cap of $15,000.
Extending the tax break into mid-2010.
Making the benefit available to all home buyers, not just first-timers.
Offering a separate tax credit to $3,000 for borrowers who refinance.
USA Today, Stephanie Armour (06/22/09)© Copyright 2009 Information Inc.
REALTOR® Magazine-Daily News-Home Buyer Tax Credit Could Expand
Setting a new cap of $15,000.
Extending the tax break into mid-2010.
Making the benefit available to all home buyers, not just first-timers.
Offering a separate tax credit to $3,000 for borrowers who refinance.
USA Today, Stephanie Armour (06/22/09)© Copyright 2009 Information Inc.
REALTOR® Magazine-Daily News-Home Buyer Tax Credit Could Expand
Thursday, June 18, 2009
The Case Against Waiting to Buy
Consider a typical home that sells for $300,000. You put down 20% and get a 30 year fixed rate mortgage at today’s rate of 5.25%. Monthly principle and interest come to $1306.77. Let’s say that 12 months from now the same house goes for 10% less, or $270,000. But by then recession is history and the Fed is jacking up rates to stem inflation. If mortgage costs rise just one point, to 6.25%, your monthly payment would be $1312.44 and you’d have saved NOTHING. Meanwhile home prices might steady and seller might become less willing to negotiate. To boot, you have spent a year living someplace you’d rather not be. - by Amanda Jensen and Claire Zickuhr, Mortgage Consultants, Columbia Mortgage, LLC
Friday, June 5, 2009
Tax Credit Can Be Used on Closing Costs
FHA-approved lenders received the go-ahead to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront, according to eagerly awaited guidance from the U.S. Department of Housing and Urban Development on so-called home buyer tax credit loans that was released today.
Under the guidance, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.
The loans can’t be used to cover the minimum 3.5 percent, senior HUD officials told reporters on a conference call Friday morning.
Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly but would still have to come up with the minimum 3.5 percent down payment.
There remain many sources of assistance for buyers needing help with the 3.5 percent down payment, including many state and local government instrumentalities and nonprofit lenders.
In addition, some state housing finance agencies have developed their own tax credit bridge loan programs, so buyers in states whose HFAs offer such programs can monetize the tax credit upfront to cover all or part of their down payment. These programs are separate from what HUD announced today.
The first-time homebuyer tax credit was enacted last year–and improved upon earlier this year–to help encourage households to enter the housing market while interest rates are low and affordability is high. The credit is worth up to $8,000 and is available to households that haven’t owned a home in at least three years. The credit does not have to be repaid, and is fully reimbursable, so households can get their credit returned to them in the form of a payment.
Learn more about the credit, including how to apply for it this year even if you’ve already filed your taxes, at REALTOR.org.
Source: Robert Freedman, REALTOR® Magazine Online
HUD: Tax Credit Can Be Used on Closing Costs
Under the guidance, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.
The loans can’t be used to cover the minimum 3.5 percent, senior HUD officials told reporters on a conference call Friday morning.
Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly but would still have to come up with the minimum 3.5 percent down payment.
There remain many sources of assistance for buyers needing help with the 3.5 percent down payment, including many state and local government instrumentalities and nonprofit lenders.
In addition, some state housing finance agencies have developed their own tax credit bridge loan programs, so buyers in states whose HFAs offer such programs can monetize the tax credit upfront to cover all or part of their down payment. These programs are separate from what HUD announced today.
The first-time homebuyer tax credit was enacted last year–and improved upon earlier this year–to help encourage households to enter the housing market while interest rates are low and affordability is high. The credit is worth up to $8,000 and is available to households that haven’t owned a home in at least three years. The credit does not have to be repaid, and is fully reimbursable, so households can get their credit returned to them in the form of a payment.
Learn more about the credit, including how to apply for it this year even if you’ve already filed your taxes, at REALTOR.org.
Source: Robert Freedman, REALTOR® Magazine Online
HUD: Tax Credit Can Be Used on Closing Costs
Saturday, May 30, 2009
Market Tracker
Want a great FREE tool to help you analyze the market in which you live or are looking to purchase property?
The Market Tracker gives you a broad look at the local real estate market via an email that you can cancel anytime you want.
~Track and compare up to ten zip codes.
~View stats not provided by typical Internet and MLS reports.
~Automated monthly reports provide quick snapshots of market activity.
~Follow appreciation rates in your favorite areas.
~Market research made easy with Market Tracker
If you want to know what the real estate market is doing in your area, all I need is your email and the zipcodes you are interested in.
Stay informed. Keeping up on your local market is just an email away. teresakolb@newberghome.com
The Market Tracker gives you a broad look at the local real estate market via an email that you can cancel anytime you want.
~Track and compare up to ten zip codes.
~View stats not provided by typical Internet and MLS reports.
~Automated monthly reports provide quick snapshots of market activity.
~Follow appreciation rates in your favorite areas.
~Market research made easy with Market Tracker
If you want to know what the real estate market is doing in your area, all I need is your email and the zipcodes you are interested in.
Stay informed. Keeping up on your local market is just an email away. teresakolb@newberghome.com
Wednesday, May 20, 2009
First Time Buyer Tips
If you are currently in the market for your first home, you probably have lots of questions. You are about to be making an important decision for your future, a great investment of both money and time. I have a wealth of experience helping first time buyers like you make sound, informed decisions. Here are some tips that can help make your home buying process successful:
Tip #1: Do Your Homework
The perfect home won’t find you by itself. The key step in buying a home is doing the proper research. Educate yourself on local schools, neighborhoods, and the kinds of homes available. By reading available materials and talking with experts, you can start to put together your idea of the perfect home.
Tip #2: Start Planning
Most decisions benefit greatly from proper planning, and home buying is certainly no exception. Start a filing system with sections such as home buying, home financing, and service providers. By forming a home buying plan you can more easily focus on the most important factors and help give structure to the entire process. My website, NewbergHome.com is a great resource for property information.
Tip #3: Get PreQualified
Getting prequalified for a loan normally only requires a short phone conversation with a lender, and can greatly help your home search. Prequalification does not guarantee you a loan, but it does provide you with an estimated monthly payment and a price range to use as a guide when shopping for homes. Being prequalified can also often indicate to sellers that you are a serious, prepared buyer.
Tip #4: Look for Value
When shopping for homes, it’s important to consider potential value. Even if you’re not planning to sell the home some time down the line, it’s a good idea to consider the future value of the home. Protect yourself against things like falling prices and gradual shifts in the nature of the neighborhood. You may not think of a new home as a means to make money, but it’s an important investment that requires caution.
Tip #5: Decide What You’re Looking For
Settle on the home features that are important to you (covered parking, hardwood floors, architectural style, etc.) and make an ordered list. Having well established guidelines will help narrow down your search and will prevent you from being shown properties that lack your key amenities. It can help you make the decision not to buy an attractive property that doesn't really fit your needs. My website has a search feature that allows you to filter thousands of listings based on attributes that you select. If you know you want a brick house with gas heat and a garage, you can get the results you’re looking for.
Tip #6: Relax
You don’t have to make an offer on the first home you see. Make sure to look at other listings in the area to get a feel for the marketplace. When you decide to make an offer on a house, consult with your real estate professional so that all of your questions are answered.
Tip #7: Shop Around for Your Mortgage
Deciding on the financing for your home can be as important as choosing a home itself. The first step is deciding what kind of loan best fits you: a fixed rate mortgage, or an Adjustable Rate Mortgage (ARM). There are benefits to each form of loan, and your real estate professional can provide you with more information. Next you’ll want to begin to shop around for different lenders.
Tip #8: Protect Yourself
Be careful when signing a contract on a home that allows you to find financing, have the home inspected, and work through any problem areas that may arise. Paying for a quality home inspection is absolutely crucial! You can save yourself thousands in repair costs by being sure of what you’re getting into.
Tip #1: Do Your Homework
The perfect home won’t find you by itself. The key step in buying a home is doing the proper research. Educate yourself on local schools, neighborhoods, and the kinds of homes available. By reading available materials and talking with experts, you can start to put together your idea of the perfect home.
Tip #2: Start Planning
Most decisions benefit greatly from proper planning, and home buying is certainly no exception. Start a filing system with sections such as home buying, home financing, and service providers. By forming a home buying plan you can more easily focus on the most important factors and help give structure to the entire process. My website, NewbergHome.com is a great resource for property information.
Tip #3: Get PreQualified
Getting prequalified for a loan normally only requires a short phone conversation with a lender, and can greatly help your home search. Prequalification does not guarantee you a loan, but it does provide you with an estimated monthly payment and a price range to use as a guide when shopping for homes. Being prequalified can also often indicate to sellers that you are a serious, prepared buyer.
Tip #4: Look for Value
When shopping for homes, it’s important to consider potential value. Even if you’re not planning to sell the home some time down the line, it’s a good idea to consider the future value of the home. Protect yourself against things like falling prices and gradual shifts in the nature of the neighborhood. You may not think of a new home as a means to make money, but it’s an important investment that requires caution.
Tip #5: Decide What You’re Looking For
Settle on the home features that are important to you (covered parking, hardwood floors, architectural style, etc.) and make an ordered list. Having well established guidelines will help narrow down your search and will prevent you from being shown properties that lack your key amenities. It can help you make the decision not to buy an attractive property that doesn't really fit your needs. My website has a search feature that allows you to filter thousands of listings based on attributes that you select. If you know you want a brick house with gas heat and a garage, you can get the results you’re looking for.
Tip #6: Relax
You don’t have to make an offer on the first home you see. Make sure to look at other listings in the area to get a feel for the marketplace. When you decide to make an offer on a house, consult with your real estate professional so that all of your questions are answered.
Tip #7: Shop Around for Your Mortgage
Deciding on the financing for your home can be as important as choosing a home itself. The first step is deciding what kind of loan best fits you: a fixed rate mortgage, or an Adjustable Rate Mortgage (ARM). There are benefits to each form of loan, and your real estate professional can provide you with more information. Next you’ll want to begin to shop around for different lenders.
Tip #8: Protect Yourself
Be careful when signing a contract on a home that allows you to find financing, have the home inspected, and work through any problem areas that may arise. Paying for a quality home inspection is absolutely crucial! You can save yourself thousands in repair costs by being sure of what you’re getting into.
Friday, May 8, 2009
Where to Start?
How to get started buying a home?
Step 1 - What can you afford? This is the first thing you need to find out. To get the answer, you need to begin by speaking with a loan/mortgage professional to get a Good Faith Estimate. Basically, a Good Faith Estimate gives you the details of the products and services a lender can provide you. It will give you down payment amounts, closing costs, monthly payments and different types of loans with varying interest rates. The lender should not pull your credit score to give you this information about what they can do for you. I recommend you always get 3 opinions.
Important Note
SELECT ONLY ONE LENDER/LOAN OFFICER TO GET "PRE-APPROVED" After you decide which lender to use, you'll need to get pre-approved for a loan. If you ask several lenders to pre-approve you and pull your credit, your credit score could be adversely affected by credit checking (points are deducted from your score each time your credit is checked or you apply for credit). A lender or bank that agrees to loan you money looks at you as a "risk". They want to determine their risk in giving you money and your likelihood of paying on time...that is why they look to credit scoring, your open accounts, your banking practices, income, monthly debt(s) and how you have handled them all. One Mortgage Consultant to call is Clare Zickuhr 503-720-324, czickuhr@cmortgage.net. He also has a blog: GoToLoanGuy.com. He is a great place to start since you will be interviewing at least 3 lenders and reviewing their Good Faith Estimates and different loan programs based on your distinct needs and circumstances. The decision ultimately is yours on whom you choose to get a loan with - so interview wisely.
Step 2 - Make a Wish List...Or Hopes List ... Just remember, we all have to start somewhere and sometimes we end up having to compromise something. This list consists of your needs and wants in your new home...and WHY do you need this or want that? It may come from what you have had and liked, or possibly what you have had and didn't like. We ALL want privacy or hope for space. Some have to have 2 acres while others don't even want a patch of grass to mow. Still others wish for a vegetable garden or space for kids or dogs or be near a park or work or school or nearby shopping or or or...
Step 3 - Call a Realtor when Step 1 AND Step 2 are COMPLETED
When you are ready, I can help you understand your loan options and then give you a list of available homes in your price range that meet some of the items on your Wish and Hopes list and together we will find the right home for you. Teresa Kolb 503-550-6438, TeresaKolb@NewbergHome.com
Step 1 - What can you afford? This is the first thing you need to find out. To get the answer, you need to begin by speaking with a loan/mortgage professional to get a Good Faith Estimate. Basically, a Good Faith Estimate gives you the details of the products and services a lender can provide you. It will give you down payment amounts, closing costs, monthly payments and different types of loans with varying interest rates. The lender should not pull your credit score to give you this information about what they can do for you. I recommend you always get 3 opinions.
Important Note
SELECT ONLY ONE LENDER/LOAN OFFICER TO GET "PRE-APPROVED" After you decide which lender to use, you'll need to get pre-approved for a loan. If you ask several lenders to pre-approve you and pull your credit, your credit score could be adversely affected by credit checking (points are deducted from your score each time your credit is checked or you apply for credit). A lender or bank that agrees to loan you money looks at you as a "risk". They want to determine their risk in giving you money and your likelihood of paying on time...that is why they look to credit scoring, your open accounts, your banking practices, income, monthly debt(s) and how you have handled them all. One Mortgage Consultant to call is Clare Zickuhr 503-720-324, czickuhr@cmortgage.net. He also has a blog: GoToLoanGuy.com. He is a great place to start since you will be interviewing at least 3 lenders and reviewing their Good Faith Estimates and different loan programs based on your distinct needs and circumstances. The decision ultimately is yours on whom you choose to get a loan with - so interview wisely.
Step 2 - Make a Wish List...Or Hopes List ... Just remember, we all have to start somewhere and sometimes we end up having to compromise something. This list consists of your needs and wants in your new home...and WHY do you need this or want that? It may come from what you have had and liked, or possibly what you have had and didn't like. We ALL want privacy or hope for space. Some have to have 2 acres while others don't even want a patch of grass to mow. Still others wish for a vegetable garden or space for kids or dogs or be near a park or work or school or nearby shopping or or or...
Step 3 - Call a Realtor when Step 1 AND Step 2 are COMPLETED
When you are ready, I can help you understand your loan options and then give you a list of available homes in your price range that meet some of the items on your Wish and Hopes list and together we will find the right home for you. Teresa Kolb 503-550-6438, TeresaKolb@NewbergHome.com
Friday, May 1, 2009
$8000 First-time buyer tax credit - who qualifies?
A Federal Housing Tax Credit of up to $8,000 is available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.
The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
For more answers about the Federal Housing Tax Credit visit the FAQ page on the following link : http://www.federalhousingtaxcredit.com/2009/glance.php
The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
For more answers about the Federal Housing Tax Credit visit the FAQ page on the following link : http://www.federalhousingtaxcredit.com/2009/glance.php
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