THE IMPORTANT KNOWLEDGE IN REAL PROPERTY OR ESTATE PURCHASING

The purchasing of real estate is a serious step in everybody`s life. It will be necessary for you to know special rules. First of all that you should to do is to determine your needs. The most important thing before buying a real property, you should have a clear idea of apartment or house you are looking for. Take into account your needs according to your capabilities. Think attentively for what period of time you want to buy a real property. Do you need another real property in the future? Define your proper criteria such as - location, area, number of rooms, apartment in new building or in the secondary market, condition, etc. You must set correctly assess your financial capabilities. Once you have decided what type of real property you want to buy. In this case you need to find out how much. You need money to buy it and determine how much you can afford to pay from their savings.
 

In order to determine how much mortgage you can count the purchase of certain real estate, to meet with a mortgage specialist at a Bank or turn to realtors who conduct bargains with mortgage lending, which will not only help with the selection of the Bank and mortgage programs. They will also help you find the right property and register it in the real property. After receiving the approval of the Bank, you can safely proceed to the real property search, knowing exactly that you can afford. Find a real property with needful characteristics. Introduce an apartment or house of your dreams before buying, the purchase of real estate, in order to really find it within your budget. You have to understand that sometimes it can be very different things! As a rule, before to buy something, you need to do some research and purchase real estate before you make a purchase. For comparison it is necessary to examine several objects. But you also need remember - if you examine the 10 - 20 options before finding the one that suits you previously viewed sentences that are more or less might not be like you. You should also be realistic when looking for a property. Think about what is truly important to you, because buying a property is often a variety of compromises between the expectations and realities: - Small square, but in a great location property or a larger area somewhere else in the area that you like less. Spacious apartment, facing the railroad tracks or a busy highway, smaller house a few blocks away. Inconvenient layout, but the owner is willing to reduce the price. But don't worry - the home of your dreams, one that feels just right - it's there. The legality of the bargain is also significant. It is very important the legal side of the bargain. So, if you do not have the necessary knowledge and experience in conducting real estate transactions, it is best to hire a professional who specializes in real estate transactions. This especially applies to the purchase of real estate mortgage is an experienced Realtor will help you choose an apartment or a house that will appeal not only to you but to the Bank outstanding under the real property loan. This will significantly reduce the time of searching for real estate. As a rule, bidding always happens between the seller and the buyer trade on the value of the real property. The seller accepts or rejects the proposals of the buyer for the price of his real property. Bargaining on the price of property should be subject. You can negotiate with the seller on the marketplace, for example, if you want to resolve any technical malfunction or property need major repairs, etc. Involvement in the negotiation process, an experienced specialist can help to significantly reduce the price of the purchased property.

If the bargain is a mortgage, it will include review and approval of the mortgage loan by the Bank, the real property search, testing Bank found property, final approval of the Bank deal with found property, clearance and settlement of the bargains with real estate too. The completion of the bargain in purchasing of real estate is obtaining a registered certificate of title, final payment in the deal and the handover of the property by the seller to the buyer. From properly designed and conducted bargains depends on the further tranquility of the new owner. Therefore it is necessary to think in advance about engaging in this process with the specialist. When you bay a real property don`t forget to check all the documents. So, study all the seller documents and collect all data relative to the host dwelling and the house or apartment. Worth checking out house-book, if it is a private house - all former residents should be issued. In turn, you need to know, does the host relatives, which after the transaction will qualify for their share of the property. Special attention should be paid to minor children, persons who are currently in prison and ex-spouses. It is possible that some pretender categories accurate information. You can provide only to a private investigator. And remember that the beginning your application process will be possible only after obtaining the consent from all potential owners. As the owner of the apartment or house, you will be able to give next door neighbors. And here the help of the ubiquitous babushkas on the benches will become your invaluable discovery.

Source: The Realty Times 06/24/2016

What Do You Actually Need to Get a Mortgage?

Fannie Mae recently released their “What do consumers know about the Mortgage Qualification Criteria?” Study. The study revealed that Americans are misinformed about what is required to qualify for a mortgage when purchasing a home. Here are three takeaways:

• 59% of Americans either don’t know (54%) or are misinformed (5%) about what FICO score is necessary
• 86% of Americans either don’t know (59%) or are misinformed (25%) about what an appropriate Back End Debt-to-Income (DTI) ratios is
• 76% of Americans either don’t know (40%) or are misinformed (36%) about the minimum down payment required

To help correct these misunderstandings, let’s take a look at the latest Ellie MaeOrigination Insight Report, which focuses on recently closed (approved) loans.

FICO SCORES

BACK END DTI

DOWN PAYMENTS

Bottom Line

Whether buying your first home or moving up to your dream home, knowing your options will definitely make the mortgage process easier. Your dream home may already be within your reach.

Source: Keeping Current Matters / The KCM Crew / 01212016

The Most Appealing Aspects of Homeownership

The National Association of Realtors (NAR) just released their first issue of the Housing Opportunities & Market Experience Survey (HOME). In the report, NAR revealed what Americans believe to be the most appealing aspects of homeownership.

Here is a graph showing the results:

It is interesting to see that the two most appealing aspects had nothing to do with money, but instead, addressed the non-financial benefits of homeownership.

Source: Keeping Current Matters / The KCM Crew / 01142016

Thinking of Buying a Home? 3 Questions Every Buyer Should Answer First

If you are debating purchasing a home right now, you are probably getting a lot of advice. Though your friends and family will have your best interest at heart, they may not be fully aware of your needs and what is currently happening in the real estate market. Answering the following 3 questions will help you determine if now is actually a good time for you to buy in today’s market.

1. Why am I buying a home in the first place?

This truly is the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with money. A study by the Joint Center for Housing Studies at Harvard University reveals that the four major reasons people buy a home have nothing to do with money. They are:

• A good place to raise children and for them to get a good education
• A place where you and your family feel safe
• More space for you and your family
• Control of that space

What does owning a home mean to you? What non-financial benefits will you and your family gain from owning a home? The answer to that question should be the biggest reason you decide to purchase or not.

2. Where are home values headed?

According to the latest Home Price Index from CoreLogic, home values are projected to increase by 5.3% over the next 12 months. What does that mean to you? Simply put, if you are planning on buying a home that costs $250,000 today, that same home will cost you an additional $13,250 if you wait till next year. Your down payment will need to be higher as well to account for the higher home price.

3. Where are mortgage interest rates headed?

A buyer must be concerned about more than just prices. The ‘long term cost’ of a home can be dramatically impacted by even a small increase in mortgage rates. The Mortgage Bankers Association (MBA), the National Association of Realtors and Freddie Mac have all projected that mortgage interest rates will increase by approximately three-quarters of a percent over the next twelve months as you can see in the chart below:

Bottom Line

Only you and your family will know for certain if now is the right time to purchase a home. Answering these questions will help you make that decision.

Source: Keeping Current Matters/The KCM Crew/01112016

READY TO SELL YOUR FIRST HOUSE?

However long you have lived in your house, your choice to put it up for sale in the marketplace often comes with a ton of questions and of course, pressure. This is particularly true if it's your very first time through the sale process. Think about the next few points before getting going on the selling of your first house. Determine to Sell Before you'll be able to sell your house you should be completely prepared for all that it entails. Understand the marketplace as much as you can. You'll have to find qualified people who can help you list your home, and you need to be prepared to part with your house. Thinking of your property as only a house - without the sentimental connection - is going to generally allow you to to be realistic in regards to the value and total state of your property. With potential buyers utilizing the web increasingly to study future houses, you just get one opportunity to show them your house before they decide if they'd like to come see it and possibly buy it. Be up front about everything involved in your property, including cost. Plan Ahead A house can be sold quite fast, therefore it saves time and stress when you know where you are going to go once your house sells. Find Trustworthy Realtors to Work With The particular person or team you select will be someone(s) you are in direct contact with often. This means that ensuring that you find someone reputable and that you get along with is a vital element of selling your house.  They are going to be your resource if you have questions in regards to the marketplace & prospective buyers. Plus they'll assist you with making a decision as to what price you need to list your house at in today's marketplace. It is necessary to seek out an agent that has a successful record of selling houses locally in your area that you can also trust. Selling your first house becomes more and more easy when you're able to possess a strategy of where you are going to sell, a target of where you would like to be, and when you have someone working with you that you can trust. Make sure you're not unwilling to do what it will take to make your home as appealing and presentable as possible, and make sure you price it to sell.  

Source: Realty Times | Kenneth Johnson | 01082016

Obstacles to Homeownership: Perceived or Real?

Yesterday, we discussed the belief Americans have in homeownership and their desire to partake in this piece of the American Dream. We also discussed some of the obstacles preventing them from attaining that goal. However, studies have shown that that many of the obstacles mentioned are perceived, not real. A recent study by Fannie Mae, What Do Consumers Know About The Mortgage Qualification Criteria?, revealed that many consumers are either unsure or misinformed regarding the minimum requirements necessary to obtain a mortgage. Let’s break down three such challenges.

Down Payment

Perceptions

Many renters have mentioned that the lack of an adequate down payment is preventing them from moving forward with the purchase of a home. According to the Fannie Maereport:

• 40% of all renters don’t know what down payment is required
• 15% think you need at least 20% down
• An additional 4% think you need at least 10% down

The Reality

There are programs offered by Fannie Mae, Freddie Mac and FHA that require as little as 3-3.5% down. VA and USDA loans offer 0% down programs. According to theNational Association of Realtors, the typical down payment for a first time buyer is 6%.

Credit Score

Perceptions

Many renters have mentioned that the lack of an adequate credit score is preventing them from moving forward with the purchase of a home. According to the Fannie Maereport:

• 54% of all renters don’t know what credit score is required
• 5% think you need at least a 740 credit score

The Reality

Many mortgages are granted to purchasers with a credit score of less than 700. According to Ellie Mae, the average credit score on a closed FHA purchase is 687 and the average credit score on all loans is 722.

Back End Debt-to-Income Ratio (DTI)

Perceptions

Many renters have mentioned that they carry too much debt which is preventing them from moving forward with the purchase of a home. According to the Fannie Mae report:

• 59% of all renters don’t know what DTI is acceptable
• 25% think you need at under 25%
• 7% think you need under 39%

The Reality

Lenders like to see a back-end ratio that does not exceed 36%. Fannie Mae’s maximum total DTI ratio is 36% of the borrower’s stable monthly income. The maximum can be exceeded up to 45% based on credit score and other requirements.

Bottom Line

Don't let a lack of knowledge or misinformation keep your family from buying a home this year. Meet with a local real estate professional who can evaluate your ability to buy now!

Source: Keeping Current Matters / The KCM Crew / January 7, 2016

Top Reason to List Your House For Sale Now!

If you are debating listing your house for sale this year, here is the #1 reason not to wait! Buyer Demand Continues to Outpace the Supply of Homes For Sale The National Association of REALTORS’ (NAR) Chief Economist, Lawrence Yun recently commented on the inventory shortage: “While feedback from REALTORS® continues to suggest healthy levels of buyer interest, available listings that are move-in ready and in affordable price ranges remain hard to come by for many would-be buyers.” The latest Existing Home Sales Report shows that there is currently a 5.1-month supply of homes for sale. This remains lower than the 6-month supply necessary for a normal market and well below November 2014 numbers. The chart below details the year-over-year inventory shortages experienced in 2015:

Housing Supply Year-Over-Year | Keeping Current Matters

Anything less than a six-month supply is considered a “Seller’s Market”. Bottom Line Meet with a local real estate professional who can show you the supply conditions in your neighborhood and assist you in gaining access to the buyers who are ready, willing and able to buy now!

Source: Keeping Current Matters, KCM Crew, January 4, 2016