Sammarusich Blog

For some people, finding a perfect property to buy is challenging. Throw the current economic hardship into the equation, and the process gets even tougher. Fortunately, many people are in the same situation. Here’s a rundown of tips from some of Denver’s leading real estate experts.

1.Choose the wrong mortgage: With the advent of instant refinancing, home loans are no longer the lifetime obligations they used to be. Still, you don’t want to be saddled for even a short period of time with the wrong one. Investigate all your options, then lay your choices side-by-side and do the math, making sure to compare worst-case scenarios. Be sure to look at initial interest rates, future interest rates and payments (if different), and the possibility of prepayment penalties.

2. Confuse “pre-approved” and “pre-qualified” with a loan commitment: These are debatable terms in real estate because not all lenders apply the same definition to each expression. In fact, one leading real estate dictionary contains neither expression because their definitions are uncertain. According to one school of thought, however, when you are “pre-qualified,” the lender is making an educated guess about how much you can borrow based on information you’ve provided. When you are “pre-approved,” the lender has verified everything you have told him or her and is offering to lend you up to a given amount at current interest rates — under certain conditions. Whether pre-qualified or pre-approved, final clearance and a check at closing — a loan commitment — are subject to an appraisal satisfactory to the lender, good title, a last-minute credit check, and other verifications. When meeting with lenders, always ask how they define each term and what additional steps will be required to obtain a loan.

3. Have too much credit: Excessive credit is almost as bad as no credit or even bad credit. Even if you pay your bills on time, lenders tend to focus just as much on how much credit you have available to you as they do on timeliness. So being up to your ears in car loans and credit cards is a sure way to be turned down for a mortgage. Postpone any big ticket purchases until after you buy your house.

4. Lie on your loan application: Exaggerating your income on a mortgage application or putting down other untruths can be a federal offense. Lenders rarely prosecute liars. But if they find out later, they can call your loan due and payable. Don’t ever sign your name to a loan application that is not completely filled out, either. Loan officers have been known to stretch the truth to get a client approved, but it’s the borrower who ends up paying the price, often in the form of monthly loan payments he can’t afford.

5. Hide if you can’t make your payments: The worst thing you can do is ignore phone calls and letters from your lender when you are behind on your payments. Lenders have many options at their disposal to help keep borrowers from losing their homes to foreclosure. But they can’t do anything for you unless they can talk to you about your difficulties. Lenders are the enemy only if you give them no other choice.

6. Skip a home inspection: Failing to make your purchase contingent on a satisfactory home inspection could be a costly mistake. Independent home inspectors examine houses from stem to stern. They’ll be able to tell you whether the roof and/or basement leaks, whether the mechanical systems are in good shape and how long the appliances should last. They can’t report on things they can’t see, but at least their trained eyes are better than yours. So don’t pass just to save $300-$400; that’s money well spent.

7. Hire just any agent to sell your house: All real estate agents are not the same. You want to look for those who specialize in your neighborhood and are top producers. Ask your candidates how they plan to market your house, what you can do to make the place more attractive to prospects and how much you should ask. If you don’t like any of the answers, looks elsewhere. And above all, stay away from relatives. Unless Aunt Bessie or Nephew Nick fit the description above, keep looking.

8. Fail to check out a remodeler: Never, ever hire a contractor who knocks on your door or says his prices are good for only a few days. Reputable remodelers don’t solicit door-to-door, and they don’t cut prices just because they happen to be in your neighborhood. Check out a potential contractor thoroughly by calling several of his past clients, your local better business bureau, his bankers and suppliers, and your local consumer affairs agency.

9. Pay too much upfront: If a contractor asks for more than a third of the contract price as a downpayment, chances are something’s wrong. At worst, he’s a scam artist who has no intention of returning after he cashes your check. At best, he’s undercapitalized and can’t afford to purchase materials on his own. Or, in between, he could be using your money to pay workers on another job. Never give a contractor cash, either.

10. Burn your mortgage: It’s a wonderful feeling when you make your last house payment. After all, the place is now yours, all yours. Many people celebrate by holding a mortgage burning party. But they torch the original document. Don’t. Make a copy and burn that instead. Keep all your loan docs in a safe place.

With that advice in hand, home buyers can rest assured that they will make wise investments at the right time.

Michael Russell writes about a variety of subjects, including real estate, modern architecture and environmentalism. This article discusses real estate strategy in Denver. For more information on Denver Real Estate, visit the Real Estate Book.

 

What makes Austin Unique

If you are wondering what is so special about Austin, you should take a close look at the people who make up its large population that have dubbed the unofficial motto of the city to be, “Keep Austin weird.” No, you will not find an entire population of people who believe that aliens are real, simply a population of people who value individualistic and eccentric thinking who are willing to give just about everything a try once. All of these reasons are why the innovative corporate offices of Dell, AMD, Google, eBay, and Samsung enjoy functioning next door to a burgeoning music scene.

In fact, Austin is currently enjoying a nice surge of tourists due to its extensive music scene and people who want to find out for themselves why Austin is the next big city in America. Although the music scene is probably one of the most thriving and well known parts of the arts culture in Austin due to the annual South by Southwest festival and the Austin City limits music festival, the reason why music is continually being output in such large quantities is because the art scene embraces and adores its artists.

Independent thinking is shown throughout the city as local and small stores thrive in the Austin area alongside organic and free trade grocery store. People simply enjoy having plenty of choices to eat what they want, think how they wish, and act anyhow they feel within the friendly constricts of the large metropolitan area. This is one of the reasons why the Austin population is ranked second across the nation in terms of interesting personality, which in itself makes the city so unique.

Outside of the spirit of the people who inhabit Austin making it unique, is the many festivals, museums, and other events that take place throughout the city each year. For example, where else can you attend a museum event each year that honors somebody with an award for having the strongest wit (O. Henry Pun-off at the O. Henry museum)? Or head down to Sixth Street to take place in the annual Pecan Street Festival. Of course, you also cannot forget Austin’s renowned Trail of Lights around Christmas time in which the entire Zilker Park is lit up with over 300,000 strings of Christmas lights around props with Christmas and non-Christmas scenes.

These are just a few of the more exciting reason why Austin is so unique, but there are many more practical reasons as well. Although the weather patterns in Austin can be unpredictable, the weather stays generally warm in the area and stays pretty much above freezing. Also, housing in the Austin area is a very affordable, which is hard to find near any large city, especially due to the current economy and housing recession. . . .

 

 

Dena Davis is a Broker and partner at the Davis Company an Austin Texas Real Estate firm. The Davis Team can help you with your South Austin Real Estate.

Dena Davis is a Broker and partner at the Davis Company an Austin Texas Real Estate firm. The Davis Team can help you with your South Austin Real Estate.

All across the United Kingdom, thousands of properties are being sold every year at a property auction. Many first time property investors and seasoned buyers have found their dream investment properties at an auction, usually at a price well below market value. No longer are auctions reserved for the wealthy and the astute. In fact, just about everyone can join in on an auction, and with much preparation and a little bit of luck, you might just walk away with a very good bargain.

Many property investors have found success and profit at a property action. For the novice investor, however, an auction can be quite a daunting experience although it is a very good place to start. The most important thing to keep in mind is that an auction is not a game. Remember that your goal at the auction is not to purchase the property no matter what cost but to come out with a bargain. While the bidding wars can be heady and exciting, do not get too caught up on it that you lose sight of your goal – to purchase the property at a price well below market value.

Here are some expert tips on how to keep your cool and stay on guard as you participate in an auction:

* Observe. If it is your first experience at a property auction, it is advisable to go to one beforehand without actually joining in. Attend an auction as an observer so you can see how the process goes about an how the pros do it. If you have a trusted friend who has had some experience at auction sales, then it would be better if you can bring him or her along. A well-versed person can explain the process to you so that when you embark into the tangled world of auctions by yourself, then you would know what to do.

* Investigate. Research is undeniably the most important part of the whole auction purchase. Since you do not want to end up with a worthless property that nobody wants to take off your hands, then do some research beforehand. Once you have found a property with potential, the first thing you should do is to know all that you can about it. Know the basic facts such as the size of the house, the basic facilities, who the previous homeowner was and the kind of amenities that it includes. Finally, the most important part is to know the properties value. Of course, you have to know if you are indeed scoring a bargain or if it ends up being overpriced. To know if you are getting the value for your money, know the prices of two or three similar properties within the same locality. This will also give you a good idea of the price range that you should bid for come auction day.

* Be financially prepared. Even before going to an auction, make sure that your finances are in order. Auctions generally require a sizeable sum as deposit upon the fall of the hammer on auction day itself. Moreover, you will be required to shell out the balance of the purchase price 28 days after the sale. This requires you to have the money ready even before the actual auction day.

Parmdeep Vadesha is a property investment expert and founder of the largest community of property entrepreneurs on the web who buy below market value properties from distressed homeowners facing repossession, divorce and bankruptcy. He writes a monthly newsletter for over 70,000 property investors worldwide – http://www.Property-System.com

You may not even be aware that you have a credit score, but if you’ve ever applied for a mortgage, a car loan or even had utilities, such as gas or electricity connected to your home, it’s likely that your credit score has been checked.

A credit score is effectively a ‘risk-assessment’ carried out by a lender to see what the likelihood is of you either paying or defaulting on your bills. It is a mathematical formula that compares your bill-paying history with the histories of millions of other people.

It will compare your debts, your credit history, the length of your credit history, new loans and anything else considered relevant. The resulting figure tells lender whether you have a good or bad credit score. If yours is good, you are likely to be accepted for certain offers on, for example, cars or get good rates of interest on loans.

If, however, you have a poor credit score, you will find it harder to qualify for certain offers and the interest rates you pay are likely to be higher. Basically, the higher your credit score – the more desirable you are as a customer to someone like a mortgage lender.

Roughly 35% of your credit score is determined by your bill-paying history: late payments, bankruptcy, late collections etc, can all give you a low credit rating. It is generally checked over a two-year period and it is the more recent debts that carry the most weight.

Mortgage lenders also take into account your income and your potential earnings in the future.

Someone with a poor credit score may find themselves being refused a mortgage, based on the calculations involved in their credit score or will find themselves paying a higher rate of interest than someone whose history makes them ‘less of a risk’ or a more desirable customer.

Even if you have obtained a mortgage, an adverse credit rating can make it harder to remortgage – especially if your credit score is impaired by defaulted payments to the current lender.

It is possible to improve and even recover a low credit score. Credit scores can be applied for and then it is possible to see where there are problems; for instance a bankruptcy can remain as a factor in a score for up to 10 years and can have a significantly adverse effect.

Yet by managing finances carefully, it is possible to accumulate ‘points’ and change the nature of your rating, making things like a mortgage or a remortgage much more viable options. Simple things, like ensuring that loans or debts payments are met on time can positively affect an impaired credit score.

Even keeping an eye on your credit card can have an effect; mortgage lenders view people who owe smaller amounts on many credit facilities as being in a lower risk bracket than those who owe large amounts on relatively fewer.

Careful credit management, over time, can raise your credit score to a level where potential lenders can view you as a desirable client.

Tom Mead is a qualified mortgage advisor writing bad credit mortgage editorial helping people remortgage with bad credit.

Anyone can purchase a Florida HUD Home as long as you have the cash to purchase the home or you can qualify for an FHA loan. FHA/HUD Homes are sold through a bid process and you will need a Florida FHA/HUD-approved real estate agent to assist you with that bid process. HUD will even pay that real estate agent’s fee.

Florida HUD Homes are sold ”’as-is,”’ without warranty. That means that HUD will not pay to correct any problems. But even if a HUD Home needs fixing up – and not all of them do – it can be a real bargain! For example, HUD’s asking price on the home will reflect the fact that the buyer will have to invest money to make improvements. HUD might offer special incentives such as an allowance to upgrade the property, a moving expense allowance, or a bonus for closing the sale early. And keep in mind that on most sales, the Florida HUD home buyer can request HUD to pay all or a portion of the financing and closing costs. Your real estate agent will have details.

We encourage Florida buyers to get the home professionally inspected before you make an offer so you will know what repairs you may have to make BEFORE you submit your bid.

Start your HUD Home buying process by finding a participating real estate agent. Your Florida real estate agent must submit your bid for you. Normally, HUD Homes are sold in an ”’Offer Period.”’ At the end of the Offer Period, all offers are opened and, basically, the highest reasonable bid is accepted. If the home isn’t sold in the initial Offer Period, you can submit a bid until the home is sold. Bids can be submitted any day of the week, including weekends and holidays. They will be opened the next business day. If your bid is acceptable to FHA/HUD, your Florida real estate agent will be notified, usually within 48 hours. You’ll be given a settlement date, normally within 30-60 days, by which you need to arrange financing and close the sale.

To view listings of Florida HUD Homes or to find Florida HUD-approved real estate agents, please visit the following web site: http://www.hud.gov/homes/homesforsale.cfm. All Florida HUD Homes are sold by private Florida Real estate companies called Marketing and Management Contractors. By accessing the web site above you will be guided to the Marketing and Management contractor for your area. All bidding and closing information will be processed by that FLoirda real estate company.

Apply for FHA 97% Financing down to a 530 FICO at
http://www.fhamortgageprograms.com/mortgage/fha-loan-program.shtml
http://www.fhamortgageprograms.com/faq/fha.shtml
http://www.fhamortgageprograms.com/florida/Boca-Raton/
http://www.fhamortgageprograms.com/florida/Palm-Bay/