Aug
14
Weekend Highlights
Filed Under denver, mortgage, real estate | Leave a Comment
Al Lewis of the Denver Post discusses the glut of condos in Colorado:
“Colorado’s inventory of unsold condos is at an all-time high,” said Gary Bauer, an independent real-estate analyst in Denver. According to Bauer’s analysis:
* Condo sales have slipped 1 percent year-to-date, compared with a year ago.
* The average price of sold condos year-to-date is down 1.5 percent to $185,000, compared with a year ago.
* Condo owners are increasingly renting their pads instead of selling them in a depreciating market.
Great article in Sunday’s Denver Post entitled Man’s dream house wasn’t dream project. The home was based on Frank Lloyd Wright design principles and carries a $1.4 million price tag. Includes a do’s and don’ts of home building.
DON’T
Be your own contractor. “People often think they can save 15 percent on a house by being their own contractor,” said Formissano. “What they don’t understand is the time and frustration involved. Besides, subcontractors rarely give their best bids to homeowner/contractors.”
Make a decision based on price-per-square-foot costs. “It’s an inaccurate way to decide what you can afford,” said Formissano, “because it doesn’t factor in all the project costs, like landscaping, driveway, septic system, etc.”
Get caught in the trap of multiple “small” upgrades. People tend to drive the budget up with “a little change here, a little change there,” because they rationalize that this is their one shot at building a dream house. “Most budgets are broken by $100 changes,” said Formissano, “not $1,000 changes.”
Pick a floor plan that has lots of angles or a complicated roof design. You can have an interesting house by aligning spaces on an axis, but as LeChevalier learned, the more complex the design, the higher the costs. And ultimately, construction complexity doesn’t add to resale value.
DO
Carefully select a builder. You want someone who listens to you and explains things to your satisfaction. Ask for references and check them out.
Make sure you have 5 percent to 10 percent of the project costs set aside for contingencies or extras. “If you’re building a $500,000 house, make sure you have $25,000-$50,000 set aside for an upgrade you really want or a problem that hikes the cost up,” said Formissano.
Make sure the floor plan works for you. Is the kitchen so far from the garage that carrying groceries will be like a marathon? Is the only way to access your closet through the steamy master bath?
Make decisions in a timely manner. As the house gets closer to completion, homeowners are asked to make more decisions in a shorter amount of time. Since time is money, dragging out a choice - for fear that a better one will appear tomorrow - will drive the budget skyward.
Mar
18
My least favorite email signature quotes
Filed Under mortgage | Leave a Comment
Email signatures typically have your name, position, company name, phone, cell, fax, url and maybe a quote. Some quotes are more annonying than others. Here are quotes used within the mortgage/real estate industry that get the nod as some of the worst:
- “The Greatest Compliment I can ever Receive is a Personal Referral”
- “Your Lender for life”
- “Helping you finance your dreams.”
- “Building my business, one referral at a time”
- “You’ve got a friend in the real estate/mortgage business.”
Here is the one quote I’d really like to see:
- “Refer me to your friends and family like you said you would.”
Jan
1
First time home buyer
Filed Under real estate | Leave a Comment
Editors Note: Due to the mortgage and credit crunch, First time home buyer mortgages may be harder to obtain. If you’re in need of a Denver FHA Mortgage contact us to discuss your mortgage options.
Many people dream of owning a home but the home loan process can be confusing for many first time home buyers. Mortgage lenders offer first time buyers with many home loan options and assist the buyer in finding the best home loan for them. First time home buyer programs can offer lower interest rates, low down payments, or reduced taxes.
If you’re a first time home buyer and need help paying closing costs, consider a loan that allows you to roll your closing costs into the loan amount. 103% - allows 3% of the purchase price to be rolled into the loan. 107% - allows 7% of the purchase price to be rolled into the loan.
Many lenders and insurance companies offer a First Time Home Buyers Education course that is free. Some first time home owner loan programs require you to take this course. The company that offers the course will often issue a certificate once the course has been completed.
Be sure to get pre-qualified by your mortgage professional so that you will know how much you can afford to spend on a home. There are many different first home buyer loan programs available. It’s important to consider all aspects of the program, not just the amount of the down payment, to ensure that it will be the best one for you both initially and over the next several years.
If you have not owned a home in 3 years you are considered a first time homebuyer and can be eligible for first time homebuyer programs.
Some of the programs require you to be a true first time home buyer. This means that you have never had any interest in any real property, ever, compared to some other programs that simply require a three year window with no ownership.
Many states and local counties offer down payment assistance programs to First Time Home Buyers. To qualify, most such programs require that the FTHB’s incomes be within a certain limit. There may also be limits on the property locations and project developments. These programs also have measures in place so assistance recipients cannot profit from selling the homes or refinancing the mortgages to cash in the equities built in the homes within a specified period of time.
Fannie Mae and Freddie Mac both have 100% first time home buyer programs. You may have to pay Private Mortgage Insurance (PMI) There are alternatives to paying PMI, ask you mortgage broker for more information.
With an abundance of no and low down payment loan programs along with loan programs that allow seller contributions toward closing costs, the climate as never been easier for the first time home buyer.
If you are a first time home buyer, please speak with a loan officer and your realtor or seller about seller’s concessions which may help cover closing costs in a no money down or 100% financing scenario.
Ask your mortgage broker about what first time home buyer programs that are available to you. You might even qualify for a down payment assistance program. There are several down payment assistance programs that may be able to grant you the money for your down payment. The grant must be agreed upon by both the seller and buyer, and must be in the offer to purchase. The grant money does not need to be paid back, and could help you qualify for your first home!
Some of the first time home buyer programs can be used with multiple down payment assistance programs on the local and state level as well.
There are some differences in Buyer’s Assistance programs though. Some programs will actually put a lien on the property for a certain period of time. As long as you own the home for that time period the lien will be released and won’t have to be paid back. You might want to ask about the program if you are looking at this option to determine if it will fit into your needs.
Many first time home buyers purchase property with no money down.
In 2005 43% of first time home buyers used 100% financing. That’s right! No money down! Those buyers only had to pay their closing costs.
Being a first time homebuyer can be a scary yet exciting time for a family. Along with the freedom and pleasure of owning your own home come many responsibilities. You will now have to pay property taxes, homeowners insurance, maintain the upkeep you your lawn, landscaping and exterior of your house, be prepared for inside home maintenance and take care of old worn out appliances in your home. When you furnace goes in the middle of winter there will be no landlord to call to come over immediately and have it fixed or replaced. However the rewards of owning your own home tremendously overshadow these minor responsibilities. Being a homeowner allows you to have the freedom you have always desired to have with YOUR OWN HOME. This home will belong to you and is yours to do with as you please. No more rules from parents or family members, no more landlord restrictions, no more neighbors that live above you and below you as in the apartment you just moved out of and no more having to be quiet as a mouse so that you will not disturb your neighbors through the paper thin walls in your apartment building. You make your own rules now. Being a homeowner gives you tax advantages during income tax time, it provides you with an investment of your money, and it provides you with a place to grow memories for yourself and your family. A good mortgage professional can help you understand what to expect during your first years of homeownership and will walk you through step by step of the mortgage process so that you understand what is going on throughout the processing of your home loan application. Find a mortgage professional that comes highly recommended from a family member or friend, or make sure you find someone you can TRUST when you are looking to buy your first home. This will truly make a big difference.
There are many programs for purchasing a new home with no money down. Perfect credit is not required and in most cases closing cost up to 6% of the loan amount can be financed into the loan.
Not only can you acquire 100% purchase which entails no down payment money, but a good real estate professional can also get the seller to pay closing cost. Which means no money out of pocket at all.
Find a good loan professional in your area to give you an overview of the process and also get pre approved so that you know what price of home you can purchase.
Using a real estate broker is a very good idea. All the details involved in home buying, particularly the financial ones, can be mind-boggling. A good real estate professional can guide you through the entire process and make the experience much easier. A real estate broker will be well-acquainted with all the important things you’ll want to know about a neighborhood you may be considering…the quality of schools, the number of children in the area, the safety of the neighborhood, traffic volume, and more.
Your mortgage broker can recommend a realtor in your area that specifically works with first time buyers. They will be more sensitive to 1st time buyers needs as well as their constraints.
With the many 100% financing mortgage programs available today you may not need to use a down payment assistance program if you have fair credit. Ask your mortgage broker the pros and cons of each scenario.