A bankruptcy filing delivers a devastating blow to your credit and FICO score, but it doesn't mean you have to wait 10 years before you can qualify for a mortgage. Many consumers who have filed for bankruptcy have been able to obtain a mortgage, although it is often at a higher rate than someone qualifying for a prime or "A-paper" loan.
Give explanations
Demonstrate good money habits now
Dispute any credit report errors
Save your money
Live within your means
Selling your home is an exciting time, but it can also be quite challenging. The following tips can help:
Do not over price your home. Based on an emotional assessment, it is easy to think your home is worth more than the current market may support. It is essential for sellers to determine the value of their home based on an objective analysis. Ask for sales statistics from your Best Realty Realtor to be sure that your home is properly priced. The market can change quickly, so it is important to keep updated with the current market, especially recent sales.
Keep home in good condition. Take a good, objective look at the condition of your home. Clean, well-kept homes with an updated appearance always have an advantage. A little decorating appeal can go a long way. Model homes have had thousand of dollars spent to create a mood, ambiance and sales appeal that make potential buyers "fall in love." Keep in mind, buyers are looking for a lifestyle as well as shelter. Most new buyers are probably going to be happiest moving into a home in near-perfect condition. If they have to fix the roof, a broken file floor, etc., they may hesitate in buying. At the least, it may lower the value of the home in the buyer's mind. A model-perfect home is going to attract the highest price.
Remove any items that do not remain before putting the home on the market. To avoid problems, sellers need to remove chandeliers, antique mirrors, etc., that they plan to leave with the home and replace them with quality items that match the quality of the home. Generally, anything fixed to the house is a "chattel" or asset (improvement) that stays with the home after the sale. Be specific about any items that are not included in the sales price of the home.
Getting the most from the sale of your home takes effort, but it is easier to achieve when sellers are educated and with the help of Best Realty. The equity gained and the opportunities for future investment, when selling your home, are just a few of the many benefits of the American dream of ownership.
Our goal is to educate the consumer on one of the largest purchases they will ever make. Please feel free to submit all Real Estate related questions and we promise to respond within 48 hours.
Strong and consistent evidence indicates that homeowners are more likely to: a) be satisfied with their homes and neighborhoods; b) participate in voluntary and political activities; and c) stay in their homes longer, contributing to neighborhood stability.
Homeownership is often thought to be an essential ingredient of the "American Dream." Living in a single-family, owner-occupied dwelling unit is central to the American conception of a secure and successful life. Study after study has found that a large proportion of Americans would rather own than rent a home.
In a recent national survey, for example, 86 percent of all respondents felt that people are better off owning than renting a home, and 74 percent believe that people should purchase a home as soon as they can afford it, regardless of their marital status or whether they had children in the household. Of the renters surveyed, 67 percent said they rent because they are unable to afford to own, while 26 percent said it was a matter of choice.
Moreover, a full 68 percent of renters said that buying a home is a very important priority in their lives.
In my experience I've seen how homeownership is key to strengthening families and good citizenship.
Homeownership also enables people to have greater control and exercise more responsibility over their living environment.
Homeownership helps stabilize neighborhoods and strengthen communities. It creates important local and individual incentives for maintaining and improving private property and public spaces.
Start the process today to securing your future for tomorrow!
My goal is to educate and empower the consumer on one of the largest purchases they will ever make!
Depending on the type of loan you are applying for, you may need to bring in additional documentation in order for your loan to close. Below I've listed some of the documents required to close a "FULL DOC" loan. You will only need to provide those documents which pertain to your individual situation. Keep in mind this is a general list only, and you may be required to provide additional documentation before your loan can fund, and you may not need some of the items listed below.
You will only need to provide items from the list below that pertain to your specific situation:
If self-employed you will also need:
Are you ready to buy a home? What do you do first?
Have you been thinking of buying a home? Are you ready to begin the process of buying a home as a first time home buyer? You may need a local real estate agent to show you homes in your area. You may also want to make an appointment with a mortgage lender. It will take some time working with a real estate agent to find the right home in the price range that you can afford. It will also take time to apply for the mortgage, have the lender evaluate your application, and have your loan approved. Still more time is required to do all the necessary paperwork and close on your first time home buyer mortgage loan. But in the end, you will have a home for you and your family, and you will have achieved an important part of the American dream.
First Time Home Buyer mortgage loan scenarios...which one is yours?
First Time Home Buyer mortgage loan solution
Grants can pay for closing costs and down payment.
Allow me to customize your very own personalized mortgage analysis. We work with hundreds of Non-profit organizations and Local or state agencies that offer grants, gifts and down payment assistance programs to help with a down payment for your home.
Buying a house covers a lot of ground--including legal, financial and emotional considerations. To not educate yourself and learn from the mistakes of others only sets you up to be at best disappointed and at worst finding yourself living in the wrong house. I have listed some of the most prevalent--and potentially dangerous and expensive--mistakes made by first time home buyers.
Running before walking
This is easy to do once the decision to buy a home has been made. It means rushing off looking at homes, surfing the web or calling on advertisements before doing some up-front preparation. Not spending time doing this preparation, can be a disaster. I get a number of emails from buyers who have contracted to purchase a home and want to know the easiest way of getting out of the purchase. Let it be known loud and clear:
If you contract to purchase a home and "change your mind," the chances of getting released from the contract are almost non-existent. Still we hear "We found another home!" Sorry, too late. Maybe next time. "We are buying too much house!" Okay, maybe you will be able to rent out a room or two. " It's not what we want!" Maybe you can paint the house, or add on to it or replace the carpeting, but you will almost certainly be living in it!
Over-buying the first time
Being "house poor" is a very uncomfortable existence. A large and beautiful home with little or no furniture tends to be empty and cold. A life where almost every dime of your earnings goes to the support of your house wears thin very quickly and is a frequent cause of family stress. Pushing yourself right up to--or beyond--your limits leaves you highly exposed when an emergency arises. Leave yourself some breathing room!
Not comparing mortgages
There are far too many variables--type of mortgage, term, lender and amount of points to mention a few--not to investigate all of your options. Don't simply accept the first plan presented to you, whether it is from a mortgage broker, an Agent or on the recommendation of a friend or relative. Spend time comparing to get the most advantageous plan for your requirements and financial situation.
Not getting mortgage preapproval
In the past it may have been different, but in the year 2006, prequalification and preapprovals are a necessary part of the home buying process. Not only will it give you an exact price range for your purchase, preapproval will add a great deal of strength and credibility to your offer.
Waiting for the "perfect" home
Many first time buyers make the mistake that they will, if they look around long enough, find a home that has a full 100% of their needs and wants. With the thousands of variables available in housing, including location, style, size, amenities and condition, this is almost always an unrealistic goal. There are two potential problems with this strategy. First, these buyers pass by homes that meet 90% or more of their requirements only to eventually give up (often purchasing homes with less of their requirements because they are worn out!) and second, while they are waiting for the "perfect" home, housing market prices (and often mortgage rates) continue to rise, adding expense to their purchase. Instead, it makes sense to determine the most important of your needs and the most desired of your wants and selecting a home that meets the majority of them.
Shortcutting the inspection process
This can involve skipping a whole house inspection completely, in order to save the relatively small amount of money involved, or it may involve using a friend or relative with limited experience to conduct the inspection. In either case, you run the risk of not exposing potentially expensive--or even hazardous--defects in the property. Protect yourself and invest the $200 to $500 for a professional inspection.
Mortgage Regulations Have Changed . . .
Mortgage regulations have changed significantly over the last few years, making your options wider than ever. Subtle changes in the way you approach mortgage shopping, and even small differences in the way you structure your mortgage, can cost or save you literally thousands of dollars and years of expense.
Get the Right Information
Whether you are about to buy your first home, or are planning to make a move to your next home, it is critical that you inform yourself about the factors involved.
Industry research has revealed that there are 6 common mistakes that most homebuyers make in mortgage shopping that can have a significant impact on the outcome of this critical negotiation. If handled correctly, these issues could result in a mortgage that will cost you less over a shorter period of time.
Before you commit your hard earned dollars to monthly mortgage payments, consider these 6 issues. Effective consideration of these important areas can make your payments work much harder for you.
1. You can, and should, get pre-approved for a mortgage before you go looking for a home
Pre-approval is easy, and can give you complete peace-of-mind when shopping for your home. Your local lending institution can provide you with written pre-approval for you at no cost and no obligation, and it can all be done quite easily over-the-phone. More than just a verbal approval from your lending institution, a written pre-approval is as good as money in the bank. It entails a completed credit application, and a certificate which guarantees you a mortgage to the specified level when you find the home you’re looking for.
2. Know what monthly dollar amount you feel comfortable committing to
When you discuss mortgage pre-approval with your lending institution, find out what level you qualify for, but also pre-assess for yourself what monthly dollar amount you feel comfortable committing to. Your situation may give you a pre-approval amount that is higher (or lower) than the amount of money you would want to pay out each month. By working back and forth with your lending institution to determine what this monthly amount is, and what value of home this translates into at today’s rates, you won’t waste time looking at homes that are not in your price range.
3. You should be thinking about your long term goals, and expected situation, to determine the type of mortgage that will best suit your needs
There are a number of questions you should be asking yourself before you commit to a certain type of mortgage. How long do you think you will own this home? What direction are interest rates going in, and how quickly? Is your income expected to change (up or down) in the near term, impacting how much money you can afford to pay to your mortgage? The answers to these and other questions will help you determine the most appropriate mortgage you should be seeking.
4. Make sure you understand what prepayment privileges and payment frequency options are available to you
More frequent payments (for example weekly or biweekly) can literally shave years off your mortgage. Simply by structuring your payments so that they come out more frequently, will significantly lessen the amount of interest that you will be charged over the term.
For the same reason, authorized pre-payment of a certain percentage of your mortgage, or an increase in the amount you pay monthly, will have a major impact on the number of years you will have to pay and could shorten your payment term considerably.
These two payment options can cut years off your mortgage, and save you thousands of dollars in interest. However, not every mortgage has these prepayment privileges built in, so make sure you ask the proper questions.
5. Ask if your mortgage is both portable and/or assumable
A portable mortgage, where available, is one that you can carry with you when you buy your next home and avoid paying any discharge penalties. This means that you will not have to go through the entire mort-gage process again unless you are making a move up to a much more expensive home.
An assumable mortgage is one that the buyer for your home can take over when you move to your next home. This can be a very powerful tool at the negotiating table making it much easier and more desirable for a buyer to buy your home, and again saves you any discharge penalties.
6.You should seriously consider dealing with a Mortgage Expert
Consider dealing only with a professional who specializes in mortgages. Enlisting their services can make a significant difference in the cost and effectiveness of the mortgage you obtain. For example they can make the process faster thereby avoiding costly delays. Typically there is no cost or obligation to enquire.
Home buyers and sellers often ask "What is the difference between a real estate agent and a REALTOR®?" There are a number of important reasons why using a REALTOR® is important for receiving the professional, ethical and responsible service you desire in a real estate transaction.
Many people incorrectly use the term REALTOR® in a generic way to refer to all real estate agents. However, all agents are not REALTORS®. REALTOR® is a trademarked word and should only be used when referring to a member of the local, state and national real estate professional associations. The term "real estate agent" is a generic term and refers to a sales agent who is responsible to a real estate broker and who is licensed by his or her state real estate commission to assist the broker in the business of buying, selling, exchanging, appraising, and managing property. A REALTOR® is an real estate agent who meets all these requirements, and more.
A REALTOR® is a real estate professional who subscribes to a strict Code of Ethics and high professional standards. The Code of Ethics contains rules of fairness and honesty that govern conduct and provide access to arbitration and dispute resolution. It provides a guide for long-term business success by helping to operate a real estate business smoothly and without obstacles.
Many REALTORS® seek additional professional development through education and earn the right to use REALTOR® designations. These designations are important when clients seek to find a REALTOR® who has specific training and certification in areas such as: residential properties, property management, real estate brokerage, and land consulting. Designations include "ABR" (Accredited Buyer Representative), "CRS" (Certified Residential Specialist), GRI (Graduate REALTOR® Institute) and others.
Choosing the Right REALTOR®
Consulting a professional REALTOR® in the buying and selling of your most important investment is a wise decision. Spend quality time interviewing several REALTORS® at various firms. The following guidelines may help you to find a REALTOR® who best meets your needs.
Your destiny is not your decision...it's your discovery....you've found the best, allow us to do the rest!
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