A recent MSN Money article captions "Why You Might Never Own a Home". It then goes on to write about a couple that earns a little less than $100,000 a year together and how they lament "We can't afford to buy a home". Within the article there are a number of points made that suggests that potential home buyers, like the couple cited in the article, might never be able to own a home.
Reasons like "rising home ownership prices have made ownership impossible for many middle-class families" and "easy credit and the pressure to overreach during the recent housing run-up have left America with a nasty housing-bubble hangover".
While I am sure the writer of this article means well and the intent is to be informative, the article creates more confusion and misinformation about the present home buying situation than it should. There is another side of the story that needs to be told.
The other side that should be told is "Why You Might Never Have a Better Time To Own a Home" The stars for a boom in home buying are all aligned. While the naysayers are prognosticating about the doom and gloom on the housing homefront, savvy home buyers and real estate investors are a signing a Hallelujah chorus that says "happy days are here again".
The DNA of owning one's own land or home is well embedded in the American fabric. The Homestead Act, signed into law in 1862, was the first real and substantial endeavor by the federal government to create homeowership, stability and a sense of belonging . This act provided that any American or legal immigrant could have up to 65 hectares (160 acres) practically free if they just claimed it, staked it off, cleared it and worked it. Only a nominal fee was required to be paid in some instances. This stimulated the economy and helped settle a country that was suffering growing pains, dealing with a war (The Civil War in fact) and having spirited battles between political factions. Sound familiar? Well guesss what it's no different today.
The federal government has made provisions for people to in effect homestead again.
Sure it's tuff to buy in the real estate market now if you don't know how to navigate around the subprime and adjustable rate mortage mess. On the other hand low, moderate and even high income people who feel they may never own a home can do so.
There is an abundance of home buying opportunies. Down payment assistance programs funded by federal, state and local governments. Visit. http://www.hud.gov/buying/localbuying.cfm). Non-profit organizations that have billions of dollars to lend to first time home buyers and virtually guarantee you can qualify if you follow certain guidelines and a host of other options. Check out www.naca.com.
Given that sellers are so motivated to sell and the inventory of available homes so high, this makes the home buying experience even more favorable.
Do yourself a favor. If you truly want to buy a home of your own, stop listening to the news that tells you that you can't. Do some research on what's available to you in your area with housing assistance, free money for down payment and other programs that are just waiting for you to make a move.
You can also contact me. I can help you make your dreams of home owership come true.
If you have a different opinion or take on the home buying scene, I'd like to hear it. Make your comments and tell me how you feel.
Roy Landers, attorney and real estate broker/investor teaches what’s working and making money in the current real estate market with FREE content from The Real Estate Playbook, the place where savvy home buyers, sellers and investors gather information to build a solid financial foundation.
Website: http://www.housingamericans.com
Subscribe- mail to: subscribe@housingamericans.com
Wednesday, February 13, 2008
Monday, February 11, 2008
Fanning The Flames Of The Foreclosure Fire Sale
Well it's a sad situation, but for one I am not surprised. The Foreclosure firestorm has created a wildfire that is getting out of control. Home owners who are stressed and strained with the burden of subprime mortgage debt that's just too much to handle are snapping all over the land. According to the latest reports many are resorting to torching the house rather than lose it to the bank. Detroit, Cincinnati and other major cities are experiencing an abundance of home fires suddenly.
The strange coincidence is that these home fires seem to all have one common denominator. They were all in various stages of the foreclosure process. Looks like homeowners are taking matters into their own hands and literally fanning the flames of the foreclosure housing fire sale.
Is it any wonder? I don't say it's right. Actually it's wrong, but look at the situation. Several thousand people were actually scammed when they purchased these homes in the first place. Despite what the media says, there are thousands of people who just didn't understand what they were getting into and in fact after they signed loan papers thinking they had one deal, they in fact ended up with another. The reason? The documents were changed after many of the home buyers signed the papers. They never even looked at them after the deal closed. They were just happy to have a home.
Think I'm blowing smoke. Think again. According to a recent USA Today report, the FBI opened 1,210 mortgage fraud cases in fiscal year 2007, nearly triple the number of new cases in 2003. Convictions total more than 260 in 2007. Within that article FBI financial crimes section chief Sharon Ormsby states "We expect that number to increase in 2008"
It's clear that mortgage lenders and banks are the primary culprits in this mortgage mess. Now that they are going down in flames they cry foul and want the federal government and the consuming public to bail them out. I don't think they deserve any symphathy. How about cutting the bogus mortgages in half and allowing the people to keep their homes. That seems like a reasonable solution to me.
Even then we will never recover from all the money that was stolen from the unsuspecting consumers who are caught up in this perfect fire storm.
I personally know of one young Hispanic female who was duped into signing papers to get a home and ended up with fraudulent papers being submitted in her name and on her credit, which was in the mid 700's. She works in a hotel cleaning rooms for a living. When she realized what had happened two loans had been obtained in her name and she owned two propertys. She couldn't afford to make the payments. The homes were foreclosed on, she lost her good credit, reputation and now suffers other personal and financial problems as a result of this.
Her fault? I don't think so. I looked at the papers myself and from an attorney's stand point it was clear fraud. I don't feel sorry for the banking industry.
What's your take on it?
Roy Landers, attorney and real estate broker/investor teaches what’s working and making money in the current real estate market with FREE content from The Real Estate Playbook, the place where savvy home buyers, sellers and investors gather information to build a solid financial foundation.
Website: http://www.housingamericans.com/
Subscribe- mail to: subscribe@housingamericans.com
The strange coincidence is that these home fires seem to all have one common denominator. They were all in various stages of the foreclosure process. Looks like homeowners are taking matters into their own hands and literally fanning the flames of the foreclosure housing fire sale.
Is it any wonder? I don't say it's right. Actually it's wrong, but look at the situation. Several thousand people were actually scammed when they purchased these homes in the first place. Despite what the media says, there are thousands of people who just didn't understand what they were getting into and in fact after they signed loan papers thinking they had one deal, they in fact ended up with another. The reason? The documents were changed after many of the home buyers signed the papers. They never even looked at them after the deal closed. They were just happy to have a home.
Think I'm blowing smoke. Think again. According to a recent USA Today report, the FBI opened 1,210 mortgage fraud cases in fiscal year 2007, nearly triple the number of new cases in 2003. Convictions total more than 260 in 2007. Within that article FBI financial crimes section chief Sharon Ormsby states "We expect that number to increase in 2008"
It's clear that mortgage lenders and banks are the primary culprits in this mortgage mess. Now that they are going down in flames they cry foul and want the federal government and the consuming public to bail them out. I don't think they deserve any symphathy. How about cutting the bogus mortgages in half and allowing the people to keep their homes. That seems like a reasonable solution to me.
Even then we will never recover from all the money that was stolen from the unsuspecting consumers who are caught up in this perfect fire storm.
I personally know of one young Hispanic female who was duped into signing papers to get a home and ended up with fraudulent papers being submitted in her name and on her credit, which was in the mid 700's. She works in a hotel cleaning rooms for a living. When she realized what had happened two loans had been obtained in her name and she owned two propertys. She couldn't afford to make the payments. The homes were foreclosed on, she lost her good credit, reputation and now suffers other personal and financial problems as a result of this.
Her fault? I don't think so. I looked at the papers myself and from an attorney's stand point it was clear fraud. I don't feel sorry for the banking industry.
What's your take on it?
Roy Landers, attorney and real estate broker/investor teaches what’s working and making money in the current real estate market with FREE content from The Real Estate Playbook, the place where savvy home buyers, sellers and investors gather information to build a solid financial foundation.
Website: http://www.housingamericans.com/
Subscribe- mail to: subscribe@housingamericans.com
Saturday, February 2, 2008
A Silver Lining In The Cloudy Mortgage Mess
It's a cloudy and murky storm brewing over the once clear skies of the real estate market. Foreclosures increased more than 75% in 2007 with over 2.2 million foreclosure filings nationwide.
More home owners are feeling desparate and discouraged. Some are so angry and frustrated they have started to set fire to their homes in plots to obtain insurance money to stop foreclosure and get some monetary release. Some are abandoning homes but before they leave they leave the water running and destroy portions of the structure.
The Mayor of Baltimore has sued Wells Fargo Bank claiming they have caused big damage to minority home mortage borrowers by lending them subprime adjustable rate loans the bank knew or had reason to known they could never pay.
Is this a stormy situation or what? Yes, indeed its cloudy, but like they say there's a silver lining in every cloud. I think there is one in the real estate storm that a lot of people are missing.
Here's the weather report........
More home owners are feeling desparate and discouraged. Some are so angry and frustrated they have started to set fire to their homes in plots to obtain insurance money to stop foreclosure and get some monetary release. Some are abandoning homes but before they leave they leave the water running and destroy portions of the structure.
The Mayor of Baltimore has sued Wells Fargo Bank claiming they have caused big damage to minority home mortage borrowers by lending them subprime adjustable rate loans the bank knew or had reason to known they could never pay.
Is this a stormy situation or what? Yes, indeed its cloudy, but like they say there's a silver lining in every cloud. I think there is one in the real estate storm that a lot of people are missing.
Here's the weather report........
- Interest rates on federal funds dropped to 3% on January 30, 2008
- Mortgage interest rates are starting to fall even lower. This prompts refinancing and helps many homeowers that can still refinance troublesome adjustable rate loans into 30-40 year affordable fixed rate loans thus avoiding the likelihood of future foreclosure
- Congress is contemplating and most assuredly will increase the loan maximum for FHA insured loans from the current amount of $417,000 to some where in the $600,000 to $700,000 maximum loan range. Democrats and Republicans agree it should be raised so its just a matter of how much. Its pretty much a done deal. Stay tuned it's coming
- Home prices are down and new home sales are at a record low.
- Home sellers are very motivated and willing to assist buyers with financing.
Thats the weather report. What's it all mean......IT'S A BUYERS' MARKET. That's the silver lining. Home buyers, especially first timers, will be a huge factor in making sure the economy weathers the present storm and getting out of the mortgage mess.
The winds of change are upon us. History will repeat itself. Out of the ruins of the real estate market the proverbial Phoenix will rise.
What's your opinion?
Monday, January 28, 2008
What's Your Opinion On The Economic Stimulus Package
Well looks like Congress is getting the message and seriously getting ready to do something about the looming economic down turn. The Democrats and Republicans have found something they can agree on for once - a need for economic relief, especially in the housing market where states like California and Florida have suffered 20-30 percent declines in home values and home owners are losing their proverbial shirts.
Unfortunately what they haven't agreed on is how to provide the relief. The Democrats want to increase the loans limits available for insurance backing of FHA and HUD supported homes from a maximum of $417,000 to over $700,000. The Republicans want to have the limits raised also but somewhere in the neighborhood of $600,000. This is all part of the economic stimulus package that is being considered right now by Congress. Rest assure there will likely be an increase in the maximum amount of the home loan size for insured purposes that will be backed by the government but how much should it be?
I think it should be $700,000 or more. That way more people will be able to obtain loans that are insured by the feds and housing markets in California, Arizona etc. will be stimulated and the down slide can ultimately be stopped and the housing market stabalized. It will also provide an opportunity for more first time home buyers to have access to loans for homes that otherwise would not even be considered part of the housing inventory because of the current low loan approval amount of $417,000.
The housing industry is the main key to recovery in this current economic spin. I say increase the loan limits to the $700,000 amount or more.
What's your take on it? Talk back to me and let me hear your side of it. Get involved and talk to your representatives about this too. Now is not the time to be silent.
Give me your comments in the comments section of this blog. Have a good one.
Roy Landers -roylanders@housingamericans.com. http://www.housingamericans.com/
Unfortunately what they haven't agreed on is how to provide the relief. The Democrats want to increase the loans limits available for insurance backing of FHA and HUD supported homes from a maximum of $417,000 to over $700,000. The Republicans want to have the limits raised also but somewhere in the neighborhood of $600,000. This is all part of the economic stimulus package that is being considered right now by Congress. Rest assure there will likely be an increase in the maximum amount of the home loan size for insured purposes that will be backed by the government but how much should it be?
I think it should be $700,000 or more. That way more people will be able to obtain loans that are insured by the feds and housing markets in California, Arizona etc. will be stimulated and the down slide can ultimately be stopped and the housing market stabalized. It will also provide an opportunity for more first time home buyers to have access to loans for homes that otherwise would not even be considered part of the housing inventory because of the current low loan approval amount of $417,000.
The housing industry is the main key to recovery in this current economic spin. I say increase the loan limits to the $700,000 amount or more.
What's your take on it? Talk back to me and let me hear your side of it. Get involved and talk to your representatives about this too. Now is not the time to be silent.
Give me your comments in the comments section of this blog. Have a good one.
Roy Landers -roylanders@housingamericans.com. http://www.housingamericans.com/
Wednesday, January 23, 2008
How To Sell A Home Fast In A Slow Market
Selling a house quickly in the present real estate market has become a very difficult task for home sellers. It is very common now for homes listed for sale to stay on the market for 90 days or more, even after the seller lowers the asking price.
The sub-prime and adjustable rate market has created a domino effect within the housing industry. More homes are being flooded into the pool of available housing inventory with declining values. This gives any prospective home buyer more options to pick and choose what they will buy and more negotiation power to deal with sellers who may not be in the best position to hold out for the price wanted for the house due to an inability to continue to make payments that have adjusted too high or they are in the midst of a foreclosure.
It’s a buyer’s market and any seller wanting to quickly sell a home cannot just rely on the old traditional methods of listing a home for sale and having an open house and buyers then line up to purchase.
So what can a seller do to ensure the best and quickest chance to sell a home and get the best price? Below are some untraditional methods that should be considered and that have been bringing quick results. Note the emphasis is on non-traditional methods of sale. Sellers must get outside the box and do things differently if they want better results. Remember Albert Einstein’s definition of insanity “doing the same thing over and over again and expecting a different result”.
Stage the property. When a home looks like it is occupied and set up with appropriate furniture and etc., it makes the home much more appealing and motivates the prospective buyer to envision how the home would look if they lived there. This makes the setting seem as if they are already in the home. It also encourages an offer. If you can’t stage it yourself there are professional stagers that are readily available and can help you get the most out of the staging experience. The writer of this article has used stagers to assist in selling homes he purchased and sold. The most recent home stager helped him realize a profit of $61,000. Stagers in your area can be found by going to www.stagedhomes.com.
Offer real estate sales agents a commission of 7% if they bring a qualified buyer ready and able to purchase the property at the asking price within a 30 day period. Seven percent may sound like a lot but, if your home moves within 30 days, the commission is more than worth it in this market. The intent is to create motivation for buyer traffic. If an offer comes in less than the asking price you can always negotiate the price as well as the commission since your terms were not met initially. The point is to get offers moving on your property.
Offer seller financing. If your property has substantial equity and you can afford to carry a mortgage on a portion of the property, then assist the buyer to buy the home with seller financing. This can be especially beneficial if, as the seller, you don’t need all the money right now. In addition, it can help with any taxes that would have been paid had you received the money in a lump sum. This can also create an income stream for the in the future. By offering seller financing it expands the buying pool of possible buyers and can move the house much quicker. Of course, one must take precautions to ensure that the buyer is qualified and will be able to make the monthly payments as they come due.
Use government money to sell your home. There is an abundance of free money available for first time home buyers through several federal, state and local government entities for down payment assistance. Check with your city’s local housing administration office. They often have a list or know of a list of buyers who have already been provided with down payment assistance certificates with values up to $50,000 or more. These are used in conjunction with local lenders who provide loans to these home buyers. If you are willing work with the agencies they can provide you with a quick method of possibly selling your home.
Down payment assistance programs can be the only medium needed to sell a home quickly if the seller is willing to cooperate with the government agency or non-profit program providing service. Click www.housingamericans.com/firsttimebuyer for full details.
Roy Landers is real estate attorney and broker with more than twenty years experience. He can be reached at roylanders@housingamericans.com or call 619-296-1393
The sub-prime and adjustable rate market has created a domino effect within the housing industry. More homes are being flooded into the pool of available housing inventory with declining values. This gives any prospective home buyer more options to pick and choose what they will buy and more negotiation power to deal with sellers who may not be in the best position to hold out for the price wanted for the house due to an inability to continue to make payments that have adjusted too high or they are in the midst of a foreclosure.
It’s a buyer’s market and any seller wanting to quickly sell a home cannot just rely on the old traditional methods of listing a home for sale and having an open house and buyers then line up to purchase.
So what can a seller do to ensure the best and quickest chance to sell a home and get the best price? Below are some untraditional methods that should be considered and that have been bringing quick results. Note the emphasis is on non-traditional methods of sale. Sellers must get outside the box and do things differently if they want better results. Remember Albert Einstein’s definition of insanity “doing the same thing over and over again and expecting a different result”.
Stage the property. When a home looks like it is occupied and set up with appropriate furniture and etc., it makes the home much more appealing and motivates the prospective buyer to envision how the home would look if they lived there. This makes the setting seem as if they are already in the home. It also encourages an offer. If you can’t stage it yourself there are professional stagers that are readily available and can help you get the most out of the staging experience. The writer of this article has used stagers to assist in selling homes he purchased and sold. The most recent home stager helped him realize a profit of $61,000. Stagers in your area can be found by going to www.stagedhomes.com.
Offer real estate sales agents a commission of 7% if they bring a qualified buyer ready and able to purchase the property at the asking price within a 30 day period. Seven percent may sound like a lot but, if your home moves within 30 days, the commission is more than worth it in this market. The intent is to create motivation for buyer traffic. If an offer comes in less than the asking price you can always negotiate the price as well as the commission since your terms were not met initially. The point is to get offers moving on your property.
Offer seller financing. If your property has substantial equity and you can afford to carry a mortgage on a portion of the property, then assist the buyer to buy the home with seller financing. This can be especially beneficial if, as the seller, you don’t need all the money right now. In addition, it can help with any taxes that would have been paid had you received the money in a lump sum. This can also create an income stream for the in the future. By offering seller financing it expands the buying pool of possible buyers and can move the house much quicker. Of course, one must take precautions to ensure that the buyer is qualified and will be able to make the monthly payments as they come due.
Use government money to sell your home. There is an abundance of free money available for first time home buyers through several federal, state and local government entities for down payment assistance. Check with your city’s local housing administration office. They often have a list or know of a list of buyers who have already been provided with down payment assistance certificates with values up to $50,000 or more. These are used in conjunction with local lenders who provide loans to these home buyers. If you are willing work with the agencies they can provide you with a quick method of possibly selling your home.
Down payment assistance programs can be the only medium needed to sell a home quickly if the seller is willing to cooperate with the government agency or non-profit program providing service. Click www.housingamericans.com/firsttimebuyer for full details.
Roy Landers is real estate attorney and broker with more than twenty years experience. He can be reached at roylanders@housingamericans.com or call 619-296-1393
Tuesday, January 22, 2008
Myths About First Time Home Buying
Rumors, rumors and myths about the current real estate market being a bad time for home buyers are just that. Rumors and myths. If you listen to the media and those who make their money hawking the doom and destruction of the economy based, in large part based on the subprime and adjustable rate failures, you will buy into the opinions that "right now" is a very bad time to buy real estate.
Nothing could be further from the truth. Its a bad time to buy real estate any time if you aren't careful and don't understand the market and don't have a game plan when you buy. If you understand a few things about the market and the psychology of the people who make the real estate market tick - buyers and sellers- you can just about predict and do whatever you want to individually. You do have to know reality from the myths.
Right now is a good time to buy real estate if you are in the market for a single family home. Why? Well lets look at the realities.
Nothing could be further from the truth. Its a bad time to buy real estate any time if you aren't careful and don't understand the market and don't have a game plan when you buy. If you understand a few things about the market and the psychology of the people who make the real estate market tick - buyers and sellers- you can just about predict and do whatever you want to individually. You do have to know reality from the myths.
Right now is a good time to buy real estate if you are in the market for a single family home. Why? Well lets look at the realities.
- Foreclosures are increasing day by day, thus filling the market with an inventory of homes that have declined in value and is forcing banks to sell those properties for pennies on a dollar.
- Several thousand more homes with adjustable rate loans are scheduled to adjust upwards within the next two years flooding the market with even more homes that home owners can't afford to pay the mortgage on and at values less than the money owed on them.
- Large investors that bought hugh mortgage portfolios of subprime loans are losing their shirts, so to speak, and this has an adverse affect on the stock market as well.
Given these facts and others that are too numerous to include in this blog, there is a glut and will be a greater glut of homes on the market for sale. That means more supply. When there is more supply the demanders (home buyers) have more choices about what they are buying and can negotiate for a better deal. What it all boils down to is home buyers are now in control. They can call the shots. That is if they can look beyond the myths that keep so many deserving home buyers from branching out to stick their feet in the waters of the real estate market.
What are these myths?
1. You have to have 15-20% down payment in order to get a home in this market. The truth is there are several options that first time home buyers have that allows them to get into a home with no money down or very little money down - as low as 3% down and that can be gifted from a family member or some other source. There are numerous programs offered through the federal goverment's FHA programs that provide for no down and low down payments and below market interest rates. These can be found at http://www.efanniemae.com/.
2. Without credit you can't buy a home. Of course credit is very important but there are ways to buy a home even without credit. Once again the federal government provides a way if one really wants to buy a home, especially for the first timer. FHA's MyCommunityMortgage provides for 30-40 year fixed rate loans with credit flexibility with up to 100% financing.
3. Down payment help sources are only for low income earners. One more myth. There are several down payment assistance programs that help with down payments for home buyers regardless of their income level. In fact many of these programs don't even require that the home buyer be a first time home buyer (defined as a home buyer who hasn't purchased a home within the last three years). Some non-profit agencies have hundreds of thousands of dollars that they are providing to home buyers to assist them with down payment money. Nonprofit agencies such as the Nehemiah Corporation provide $25,000 or more down payment assistance for home buyers needing assistance. Check them out at http://www.nehemiahcorporation.org/.
Don't let the myths about home buying in the present market discourage you from taking advantage of what in truth is a real estate boom for the home buying market.
Contact us for more information about down payment assistance for the home buyer at http://www.housingamericans.com/ or email roylanders@housingamericans.com with any questions.
Tuesday, January 8, 2008
The Importance of having the right team for the First Time Home Buyer
To all potential home buyers:
This step in our continued series of helping to educate and assist you in your home buying process, suggests the team you should have working for you when getting seriously involved in the home buying process.
Every real estate transaction is like a journey. It starts from where you begin the destination of becoming a homeowner and stops when you have found your dream home and closed the deal and are finally in your own home enjoying the many, many pleasures and benefits that home ownership provides.
Why should you have a team?
It is the best way to ensure that you have covered all steps and have provided the maximum amount of protection for your home ownership investment process. You can certainly do all things yourself to acquire your home but it often adds more stress than is necessary and since the team is working for you at little or no cost it just doesn’t make sense to go it alone.
There are several members that should be on your home buying team. Certainly, you as the buyer is a given. Maybe, should the circumstances warrant, a Realtor will act as sort of a tour guide, the lender in a sense holds the map, and there are others who will represent landmarks along the way.
It is important that you know the basics of what your team should consist of and their duties and responsibilities along the road to home ownership.
Without question the team members should consist of people who are qualified to assist you and offer the proper leadership when necessary.
Here are the basic team members you should have…………….
A Buyer’s Agent - This person is a real estate agent who specializes in just representing buyers. This agent will be your guide toward each step in finding the kind of home that meets your predetermined guidelines for what you want in a home.
A buyer's agent concentrates on the needs of the buyer only and therefore should never be distracted with attempting to represent a buyer and a seller at the same time. Such team members loyalty and devotion is solely to you the buyer.
A lender/mortgage broker – The lender plays a key role in getting to the final destination of walking into the doorway of your home. There are many trails to choose from here as well. A good lender will shop your loan needs to find the very best financing for you, including making sure that you are not surprised later with uninformed increases in rates of interest and monthly payments. The bottom line is your lender or mortgage broker should only recommend a loan commitment that is right for your needs, not their own motivations for commissions or a sale.
Your Inspectors – A licensed inspector will help the team know what obstacles to overcome near the top. Choosing the right property inspector is very important and helps the rest of your team make good informed decisions to guide you along the way. For instance, if there are repairs that need to be done prior to closing your real estate transaction there may be a need for further negotiation with the seller to make concessions on the purchase price to pay for the repairs directly or other changes.
In some circumstances, an inspection may suggest that you not continue down the road to purchase at all and just not buy the property. Under these circumstances head in another direction and find another property that more aptly fits your needs. This is especially true in situations where the inspector has found things like mold or other serious problems with the prospective property.
Your Title Company- The Title Company plays a vital role in the home buying transaction. The Title Company’s responsibility is to be sure that you are getting what you bargained for – a home that will be free and clear of title problems and can be recorded in your name without any claim against it later from somebody else. The Title Company will run title searches to be sure that all is clear. If there are liens on the property such as IRS taxes, unpaid property taxes or judgments, this will be found by the title company. You need to know these things in order to make a decision whether to continue with the purchase.
Also without a title report clearing the way for you to purchase the property free from other claims, you cannot get clear title and the title company will not issue a title insurance policy to protect you. You never want to purchase real property without a title insurance policy covering your purchase.
Your Homeowner’s Insurance Company – All of your homeowner’s insurance needs must be planned prior to closing the real estate transaction. This policy should insure your home against fire and other hazards and be in place before the closing of escrow on the property.
Some other things that should be covered in the process…….
Home Warranty Policy – A home warranty should be part of the real estate purchase process. A warranty will generally provide coverage for at least the first year after purchasing a home and will cover such things as plumbing, electrical and major appliances such as dishwashers already installed in the home. These warranties are usually provided by the seller as part of the selling process.
Pest Control Inspection – The major pest that should be looked out for when buying a home is termites. Termites are generally present in every wood structure. The question is how bad are they? Always have a pest inspection by a licensed pest control person or company.
Buying your first home should be a joyful experience. However, without the right team on your side it can be a nightmare.
Take your time, get the facts and be sure you ask questions and get straight answers. Its too late after escrow has closed. If you'd like more information about the first time home buyer experience hop on over to our website at http://www.housingamericans.com/.
Check our blog regularly for all your home buying information needs.
Roy
This step in our continued series of helping to educate and assist you in your home buying process, suggests the team you should have working for you when getting seriously involved in the home buying process.
Every real estate transaction is like a journey. It starts from where you begin the destination of becoming a homeowner and stops when you have found your dream home and closed the deal and are finally in your own home enjoying the many, many pleasures and benefits that home ownership provides.
Why should you have a team?
It is the best way to ensure that you have covered all steps and have provided the maximum amount of protection for your home ownership investment process. You can certainly do all things yourself to acquire your home but it often adds more stress than is necessary and since the team is working for you at little or no cost it just doesn’t make sense to go it alone.
There are several members that should be on your home buying team. Certainly, you as the buyer is a given. Maybe, should the circumstances warrant, a Realtor will act as sort of a tour guide, the lender in a sense holds the map, and there are others who will represent landmarks along the way.
It is important that you know the basics of what your team should consist of and their duties and responsibilities along the road to home ownership.
Without question the team members should consist of people who are qualified to assist you and offer the proper leadership when necessary.
Here are the basic team members you should have…………….
A Buyer’s Agent - This person is a real estate agent who specializes in just representing buyers. This agent will be your guide toward each step in finding the kind of home that meets your predetermined guidelines for what you want in a home.
A buyer's agent concentrates on the needs of the buyer only and therefore should never be distracted with attempting to represent a buyer and a seller at the same time. Such team members loyalty and devotion is solely to you the buyer.
A lender/mortgage broker – The lender plays a key role in getting to the final destination of walking into the doorway of your home. There are many trails to choose from here as well. A good lender will shop your loan needs to find the very best financing for you, including making sure that you are not surprised later with uninformed increases in rates of interest and monthly payments. The bottom line is your lender or mortgage broker should only recommend a loan commitment that is right for your needs, not their own motivations for commissions or a sale.
Your Inspectors – A licensed inspector will help the team know what obstacles to overcome near the top. Choosing the right property inspector is very important and helps the rest of your team make good informed decisions to guide you along the way. For instance, if there are repairs that need to be done prior to closing your real estate transaction there may be a need for further negotiation with the seller to make concessions on the purchase price to pay for the repairs directly or other changes.
In some circumstances, an inspection may suggest that you not continue down the road to purchase at all and just not buy the property. Under these circumstances head in another direction and find another property that more aptly fits your needs. This is especially true in situations where the inspector has found things like mold or other serious problems with the prospective property.
Your Title Company- The Title Company plays a vital role in the home buying transaction. The Title Company’s responsibility is to be sure that you are getting what you bargained for – a home that will be free and clear of title problems and can be recorded in your name without any claim against it later from somebody else. The Title Company will run title searches to be sure that all is clear. If there are liens on the property such as IRS taxes, unpaid property taxes or judgments, this will be found by the title company. You need to know these things in order to make a decision whether to continue with the purchase.
Also without a title report clearing the way for you to purchase the property free from other claims, you cannot get clear title and the title company will not issue a title insurance policy to protect you. You never want to purchase real property without a title insurance policy covering your purchase.
Your Homeowner’s Insurance Company – All of your homeowner’s insurance needs must be planned prior to closing the real estate transaction. This policy should insure your home against fire and other hazards and be in place before the closing of escrow on the property.
Some other things that should be covered in the process…….
Home Warranty Policy – A home warranty should be part of the real estate purchase process. A warranty will generally provide coverage for at least the first year after purchasing a home and will cover such things as plumbing, electrical and major appliances such as dishwashers already installed in the home. These warranties are usually provided by the seller as part of the selling process.
Pest Control Inspection – The major pest that should be looked out for when buying a home is termites. Termites are generally present in every wood structure. The question is how bad are they? Always have a pest inspection by a licensed pest control person or company.
Buying your first home should be a joyful experience. However, without the right team on your side it can be a nightmare.
Take your time, get the facts and be sure you ask questions and get straight answers. Its too late after escrow has closed. If you'd like more information about the first time home buyer experience hop on over to our website at http://www.housingamericans.com/.
Check our blog regularly for all your home buying information needs.
Roy
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