Archives for May 2008

Found Your Dream Home – What’s Next?

After looking at the comparables for the area a reasonable offer for the home of your dreams is agreed upon and your realtor will submit to the sellers real estate agent. Once submitted, the Sellers agent will come back with an accepted offer, or the negotiations will begin until an agreement is met.  With Foreclosures or Short Sales the time frame will be longer. Foreclosures can take up to 60 days from offer acceptance to closing.

Now that the offer is accepted the contract is sent over by your realtor to the Mortgage Broker or Bank and they will start the loan completion process.  Up until now you as the buyer have a pre-approval letter.  It is your mortgage broker/bankers’ responsiblity to stay on top of getting your loan closed.  There will be various documents needed to complete this process.  Whatever you do, do not go purchase anything on credit that might change your approval status

While this is going on there is an option period that you as a buyer can pay a small fee normally $10 a day for 10days.  This will give you time to have the home inspected to ensure there is no costly damage, such as foundation or roof repairs needed and to ensure no termite damage.

Once the inspection is done and the loan is approval process is completed  the mortgage folks will order an appraisal, and the title company orders the survey,

This process is normally done within a 30 day period unless it is a foreclosure and then it can take longer. Before you go to closing your realtor will receive a HUD statement which breaks down the expenses for closing on the home and will let you know what $$ amount is needed. There are a lot of documents that must be signed so expect the closing to take about 45 minutes.

Heres to wishing you luck on your new home purchase, give me a call I will help you….www.pattimace.com or pattimace@sbcglobal.net (pattimace null@null sbcglobal NULL.net).

Talk again soon,

Patti

What is the process to purchase a Home

Now that you understand where credit scores are derived from the next step in your home purchase is to go to your bank or a mortgage broker and get a pre-approval letter.  This pre-qualification will let you know based on your income and debt ratio what price range your home purchase needs to be at/under.

Realtors do not want to disappoint their clients in anyways so as a realtor when a client comes in the first step is the pre-qualification with a mortgage broker or bank.  This prevents the realtor from showing clients homes that are not within their ratio and ultimately making it more difficult to find them a home that fits their personality.

The next step in your home purchase is knowing where you want to live. Is there a subdivision or rural area that particularly interest you?  If you are new to the area then this could be a difficult decision but ask around your job or friends to see what opinions they have. 

Now that you have the pre-approval and know what area you would like to live in then the next step is to get with your realtor and/or find a realtor if you do not have one yet.  This step is easy if you live in Texas near the Woodlands, Houston, Spring, or surrounding areas you can contact me at pattimace@sbcglobal.net (pattimace null@null sbcglobal NULL.net), if not then I would be glad to assist you in finding someone in your area, or speak with a family member, or friend.

Realtors and clients then work together to find out what type of home you like, traditional, colonial, modern. Then how many bedrooms, bathrooms, and other areas you desire such as a study, or a gameroom. Do you want an older home in a mature area with grown trees or do you like the feel of a new home in an up and coming area.

Once this is all figured out off we will go to look at the inside of the homes to see how well they have been maintained and if the home fulfills your desires.  Most clients like to see 8-10 homes or more before making a decision and will usually narrow down to two and go and look at them again to make their final decision.

See you back here soon to check out my next blog on ….Now that the home has been chosen what is the next step……..

 www.pattimace.com (http://www NULL.pattimace NULL.com)  …. pattimace@sbclgoblal.net (pattimace null@null sbclgoblal NULL.net)

 

 

Interest Rates – How they are derived from your Credit Score

I wanted to touch base on one of the major issues people deal with when trying to make a major purchase such as a home.  The interest rate you are quoted when purchasing a home is based on your credit score that is pulled from the 3 major Credit Reporting agencies. These agencies get this calculated information from different companies who lend credit and if paid on time it gives you a rating, the higher the better!  With help from Wikipedia I want to get the word out to individuals how important it is to try and maintain your credit.

Credit ratings are determined differently in each country, but the factors are similar, and may include:

  • Payment record – a record of bills being overdue will lower the credit rating.
  • Control of debt – Lenders want to see that borrowers are not living beyond their means. Experts estimate that non-mortgage credit payments each month should not exceed more than 15 percent of the borrower’s after tax income.
  • Signs of responsibility and stability – Lenders perceive things such as longevity in the borrower’s home and job (at least two years) as signs of stability. Having a respected profession can improve a credit rating.
  • Credit inquiries – An inquiry is a notation on a credit history file. There are several kinds of notations that may or may not have an adverse effect on the credit score. Soft pulls don’t affect the credit score and are characteristic of the following examples:

A credit bureau may sell a person’s contact information to an advertiser purchasing a list of people with similar characteristics, like homeowners with excellent credit. A creditor can check a person’s credit periodically. Or, a credit counseling agency, with the client’s permission, can obtain a client’s credit report with no adverse action. Each of the preceding examples are commonly referred to as a “soft” credit pull.

However “hard” credit inquiries are made by lenders. Lenders, when granted a permissible purpose by a borrower for the purposes of extending his credit, can check his credit history. Hard inquiries from lenders directly affect the borrower’s credit score. Keeping credit inquiries to a minimum can help a person’s credit rating. A lender may perceive many inquiries on a person’s report as a signal that the person is looking for loans and will possibly consider that person a poor credit risk.

  • Credit cards that are not used – Although it is believed that having too many credit cards can have an adverse effect on a credit score, closing these lines of credit will not improve your score. The credit rating formula looks at the difference between the amount of credit a person has and the amount being used, so closing one or more accounts will reduce your total available credit. And the lower the percentage of available credit, the more the credit score will drop. The credit formula also factors in the length of time credit accounts have been open, so closing an account with several years of history is another avoidable credit mistake.

Consequences

The information in a credit report is sold by credit agencies to organizations that are considering whether to offer credit to individuals or companies. It is also available to other entities with a “permissible purpose.” The consequence of a negative credit rating is typically a reduction in the likelihood that a lender will approve an application for credit under favorable terms, if at all. Interest rates on loans are significantly affected by credit history—the higher the credit rating, the lower the interest while the lower the credit rating, the higher the interest. The increased interest is used to offset the higher rate of default within the low credit rating group of individuals.

In the United States, in certain cases, insurance, housing, and employment can also be denied based on a negative credit rating.

Note that is not the credit reporting agencies that decide whether a credit history is “adverse.” It is the individual lender or creditor which makes that decision, each lender has its own policy on what scores fall within their guidelines. The specific scores that fall within a lender’s guidelines is most often NOT disclosed to the applicant due to its nature as a trade secret. In the United States, a creditor is required to give a reason for denying credit to an applicant immediately and must also provide the name and address of the credit reporting agency who provided data that was used to make the decision.

Credit Bureaus

Several credit reporting companies: Equifax (http://www NULL.equifax NULL.com/home/), Experian (http://www NULL.experiangroup NULL.com/)TransUnion (http://www NULL.transunion NULL.com/) .

I know that this is a lot of information to take in, but the lower the interest rate the more home you can purchase. I will let you absorb this information and then blog more on the various mortgage notes based on the interest rate.

If you have guestion email me at pattimace@sbcglobal.net (pattimace null@null sbcglobal NULL.net).  Hope to see you subscribe to my blog at www.pattimace.com (http://www NULL.pattimace NULL.com).

Chat again soon,

Patti

5 bedroom with Pool in Spring TX for a great price!

803 Lemm Ct Spring, TX 77373 This home has been well taken care of, great for entertaining and I hear it calling your name. Please give me a call to see this home. Will not last long on the market. www.pattimace.com (http://www NULL.pattimace NULL.com), email pattimace@sbcglobal.net (pattimace null@null sbcglobal NULL.net).

Types of Eco Friendly homes

Hello again,  Last time I blogged about Eco-friendly homes.  This time I would like to touch base on the types of “Green-House” products and its’ value.  One major contributions to homeowners is the reduction in the country’s energy usuage and helping to improve the environment. For instance, adding a more efficient, green heating and cooling system will help lower utility cost which you can easily expect the system to pay for itself over a few years. These heating/cooling systems average an extra $2000 over normal systems but save you the home owner an average of $500.00 per year.

Another item to consider for your “green house” would be Bamboo flooring which is a renewable plant and is not killed during harvesting.  Bamboo unlike Wood is a harder more durable and longer lasting product.

When considering going green the homeowner needs to keep in mind that when they place their Eco-friendly home on the market a new buyer may not consider these amenities a value thus not pay for these extras.

As the world shifts toward different eco-friendly amenities it will also help to establish a value for these products. Are these products considered “Value in use” or Value in Exchange”?  Basically does it make a contribution to the market?

For Appraisers who estimate a homes Value in Exchange only this is based on what consumers are willing to pay for a certain amenity.

For Lenders under the current system accepting Green Homes can be of deep concerns.  Most lenders make money when the loan is put together and then they bundle them up to sell.  Green homes are not widely used yet therefore they are not in conformity with other standard type of home loans.

In time these Green homes will become more familiar to consumers and become more acceptable by builders, lenders, and appraisers.

Talk to you soon and let me know your thoughts at www.pattimace.com (http://www NULL.pattimace NULL.com).

Patti

p.s…another product to look into is Photovoltaic solar electric systems.

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