DOES MOVING UP MAKE SENSE????

These questions will help you decide whether you’re ready for a home that’s larger or in a more desirable location. If you answer yes to most of the questions, it’s a sign that you may be ready to move.

1. Have you built substantial equity in your current home? Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of your mortgage, as monthly payments are mostly interest, but if you’ve owned your home for five or more years, you may have significant, unrealized gains.

2. Has your income or financial situation improved? If you’re making more money, you may be able to afford higher mortgage payments and cover the costs of moving.

3. Have you outgrown your neighborhood? The neighborhood you pick for your first home might not be the same neighborhood you want to settle down in for good. For example, you may have realized that you’d like to be closer to your job or live in a better school district.

4. Are there reasons why you can’t remodel or add on? Sometimes you can create a bigger home by adding a new room or building up. But if your property isn’t large enough, your municipality doesn’t allow it, or you’re simply not interested in remodeling, then moving to a bigger home may be your best option.

5. Are you comfortable moving in the current housing market? If your market is hot, your home may sell quickly and for top dollar, but the home you buy also will be more expensive. If your market is slow, finding a buyer may take longer, but you’ll have more selection and better pricing as you seek your new home.

6. Are interest rates attractive? A low rate not only helps you buy a larger home, but also makes it easier to find a buyer.

5 Property Tax Questions You Need to Ask

1. What is the assessed value of the property?   Note that assessed value is generally less than market value. Ask to see a recent copy of the seller’s tax bill to help you determine this information.

2. How often are properties reassessed, and when was the last reassessment done?   In general, taxes jump most significantly when a property is reassessed.

3. Will the sale of the property trigger a tax increase?   The assessed value of the property may increase based on the amount you pay for the property.   And in some areas, such as California, taxes may be frozen until resale.

4. Is the amount of taxes paid comparable to other properties in the area?  If not, it might be possible to appeal the tax assessment and lower the rate.

5. Does the current tax bill reflect any special exemptions that I might not qualify for?   For example, many tax districts offer reductions to those 65 or over.

5 Feng Shui Concepts to Help a Home Sell

To put the best face on a listing and appeal to buyers who follow feng shui principles, keep these tips in mind.

1. Pay special attention to the front door, which is considered the “mouth of chi” (chi is the “life force” of all things) and one of the most powerful aspects of the entire property. Abundance, blessings, opportunities, and good fortune enter through the front door. It’s also the first impression buyers have of how well the sellers have taken care of the rest of the property. Make sure the area around the front door is swept clean, free of cobwebs and clutter. Make sure all lighting is straight and properly hung. Better yet, light the path leading up to the front door to create an inviting atmosphere.

2. Chi energy can be flushed away wherever there are drains in the home. To keep the good forces of a home in, always keep the toilet seats down and close the doors to bathrooms.

3. The master bed should be in a place of honor, power, and protection, which is farthest from and facing toward the entryway of the room. It’s even better if you can place the bed diagonally in the farthest corner. Paint the room in colors that promote serenity, relaxation, and romance, such as soft tones of green, blue, and lavender.

4. The dining room symbolizes the energy and power of family togetherness. Make sure the table is clear and uncluttered during showings. Use an attractive tablecloth to enhance the look of the table while also softening sharp corners.

5. The windows are considered to be the eyes of the home. Getting the windows professionally cleaned will make the home sparkle and ensure that the view will be optimally displayed.

Source: Sell Your Home Faster With Feng Shui by Holly Ziegler (Dragon Chi Publications, 2001)

Tips for Lowering Homeowner’s Insurance Costs

1. Review the Comprehensive Loss Underwriting Exchange (CLUE) report on the property you’re interested in buying. CLUE reports detail the property’s claims history for the most recent five years, which insurers may use to deny coverage. Make the sale contingent on a home inspection to ensure that problems identified in the CLUE report have been repaired.

2. Seek insurance coverage as soon as your offer is approved. You must obtain insurance to buy. And you don’t want to be told at closing that the insurer has denied your coverage.

3. Maintain good credit. Insurers often use credit-based insurance scores to determine premiums.

4. Buy your home owners and auto policies from the same company and you’ll usually qualify for savings. But make sure the discount really yields the lowest price.

5. Raise your deductible. If you can afford to pay more toward a loss that occurs, your premiums will be lower. Avoid making claims under $1,000.

6. Ask about other discounts. For example, retirees who tend to be home more than full-time workers may qualify for a discount on theft insurance. You also may be able to obtain discounts for having smoke detectors, a burglar alarm, or dead-bolt locks.

7. Seek group discounts. If you belong to any groups, such as associations or alumni organizations, they may have deals on insurance coverage.

8. Review your policy limits and the value of your home and possessions annually. Some items depreciate and may not need as much coverage.

9. Investigate a government-backed insurance plan. In some high-risk areas, federal or state government may back plans to lower rates. Ask your agent.

10. Be sure you insure your house for the correct amount. Remember, you’re covering replacement cost, not market value.

How To get Your Finances In Order

Budget Basics Worksheet

The first step in getting yourself in financial shape to buy a home is to know exactly how much money comes in and how much goes out. Use this worksheet to list your income and expenses below.

INCOME
Take Home Pay (all family members)
Child Support/Alimony
Pension/Social Security
Disability/Other Insurance
Interest/Dividends
Other
Total Income

 

EXPENSES
Rent/Mortgage (include taxes, principal, and insurance)
Life Insurance
Health/Disability Insurance
Vehicle Insurance
Homeowner’s or Other Insurance
Car Payments
Other Loan Payments
Savings/Pension Contribution
Utilities (gas, water, electric, phone)
Credit Card Payments
Car Upkeep (gas, maintenance, etc.)
Clothing
Personal Care Products (shampoo, cologne, etc.)
Groceries
Food Outside the Home (restaurant meals and carryout)
Medical/Dental/Prescriptions
Household Goods (hardware, lawn, and garden)
Recreation/Entertainment
Child Care
Education (continuing education, classes, etc.)
Charitable Donations
Miscellaneous
Total Expenses
Remaining Income After Expenses (Subtract Total Income from Total Expenses)

10 Ways to Prepare for Homeownership

 

1. Decide what you can afford.   Generally, you can afford a home equal in value to between two and three times your gross income.

2. Develop your home wish list.   Then, prioritize the features on your list.

3. Select where you want to live.   Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.

4. Start saving.   Do you have enough money saved to qualify for a mortgage and cover your down payment?  Ideally, you should have 20 percent of the purchase price saved as a down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 7 percent of the home price.

5. Get your credit in order.   Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.
6. Determine your mortgage qualifications.   How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.

7. Get preapproved.   Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.

8. Weigh other sources of help with a down payment.   Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal.

9. Calculate the costs of homeownership.   This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.

10. Contact a REALTOR®.   Find an experienced REALTOR® who can help guide you through the process.

What You Can Do To Improve Your Credit

 
Credit scores, along with your overall income and debt, are big factors in determining whether you’ll qualify for a loan and what your loan terms will be. So, keep your credit score high by doing the following:

1. Check for and correct any errors in your credit report. Mistakes happen, and you could be paying for someone else’s poor financial management.

2. Pay down credit card bills. If possible, pay off the entire balance every month. Transferring credit card debt from one card to another could lower your score.

3. Don’t charge your credit cards to the maximum limit.

4. Wait 12 months after credit difficulties to apply for a mortgage. You’re penalized less for problems after a year.

5. Don’t order items for your new home on credit — such as appliances and furniture — until after the loan is approved. The amounts will add to your debt.

6. Don’t open new credit card accounts before applying for a mortgage. Too much available credit can lower your score.

7. Shop for mortgage rates all at once. Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time.

8. Avoid finance companies. Even if you pay the loan on time, the interest is high and it will probably be considered a sign of poor credit management.

This information is copyrighted by the Fannie Mae Foundation and is used with permission of the Fannie Mae Foundation. To obtain a complete copy of the publication, Knowing and Understanding Your Credit, visit www.homebuyingguide.org.

Is a HAFA Short Sale For You?

  

 

  

It Could Save You! (and Your Credit Score) From Foreclosure 

  

At the end of last year, the Treasury Department introduced the HAFA (Home 

Affordable Foreclosure Alternatives) program for homeowners not able to keep 

  

their homes through the existing Home Affordable Modification Program (HAMP).  

This new program took effect April 5, 2010, and sunsets December 31, 2012.  

Although HAFA is a complex program – with 43 pages of guidelines and forms – it  

does simplify and streamline the use of foreclosure alternatives (i.e. short sales and  

deeds-in-lieu of foreclosure).  

There is, however, a lot of information to decipher and understand. Most  

homeowners choose to use a HAFA real estate expert to guide them through the  

process so they’re assured the benefit of all the incentives – and a more timely  

closing.  

There are several basic items to understand about the HAFA program: 

  

1. With HAFA, the short sale process has been standardized to produce a quicker 

outcome. 

  

2. Homeowners who qualify for HAFA short sales are fully released from future  

liability for their first mortgage. This means that the lender cannot – at any time –  

come after the homeowner for repayment of their original loan.  

3. A HAFA short sale allows for a $3,000 relocation assistance payment to short  

sale homeowners. Essentially, this is a one-time payment of up to $3,000 to help  

sellers with moving costs, rental security costs, and more.  

4. Homeowners are allowed to choose their own real estate agent to guide and  

advocate for them through the HAFA process. Real estate agents are also resources  

for homeowners to help them determine if they qualify for a HAFA short sale.  

5. Most major lenders are already taking part in this program (including, but not  

limited to, Wells Fargo, Chase, Bank of America, Citibank, Wachovia and more).  

So…are you wondering if you qualify for a HAFA short sale?   

Here are a few of the requirements: 

1.  The distressed property must be your principal residence

  

2.  Your home’s loan must have originated on or before January 1, 2009  

3.  You must be behind on your mortgage payments (or soon will be) 

  

4. The unpaid principal balance on your loan is no more than $729,750 for a single family property.

  

5.  The total monthly payment on your mortgage is more than 31% of your gross income. 

  

If you think HAFA might be a fit for you, or if you’d like further details 

or information, simply e-mail or call:  

  

Glenda@GlendaRedmond.com  

  

or call 417-230-0407 

Don’t waste any more time. Get this taken care of and DONE so you 

  

can move on with your life without worry of future liability.  

 

  

  

 

  

  

What You Need for a Mortgage

Lender Checklist: What You Need for a Mortgage

□         W-2 forms — or business tax return forms if you’re self-employed — for the last two or three years for every

person signing the loan.

□         Copies of at least one pay stub for each person signing the loan.

□         Account numbers of all your credit cards and the amounts for any outstanding balances.

□         Copies of two to four months of bank or credit union statements for both checking and savings

accounts.

□         Lender, loan number, and amount owed on other installment loans, such as student loans and

car loans.

□         Addresses where you’ve lived for the last five to seven years, with names of landlords if

appropriate.

□         Copies of brokerage account statements for two to four months, as well as a list of any other major assets of

value, such as a boat, RV, or stocks or bonds not held in a brokerage account.

□         Copies of your most recent 401(k) or other retirement account statement.

□         Documentation to verify additional income, such as child support or a pension.

□         Copies of personal tax forms for the last two to three years.

 

 

22 + Items To Consider When Shopping For A Neighborhood

 1. Neighborhood build-up__ Over 80%__ 30-80__ Under 30%

 2. Growth rate for area: Fully developed__ Rapid__ Steady__ Slow

 3. Property values:__ Increasing__ Stable__ Slow

 4. Supply/Demand__ Shortage__ Stable __Slow

 5. How long does it take for a home to sell?__ 3 mos.__ 4-6mos. __ 6 mos.+

 6. Present land use: ___%single family___% apts. ___%condos ___%commercial ___%industrial ___% vacant

 7. What is the probability of the land use changing in this area? __Not likely ___Likely ___Very likely (how soon?)

 8. Are most occupants in area: __% homeowner’s ___%tenants ___%vacant

 9. Single Family price range: $______to $________ Predominant Value $___ ____

 10. Single Family home age: ___yrs. To___yrs. Predominant Age__________

 11. Grade the area on the following items: Good Average Fair Poor

 12. Employment Security

 13. Convenience to employment

 14. Convenience to shopping

 15. Convenience to schools

 16. Adequacy of Public Transportation

 17. Recreational Facilities

 18. Adequacy of Utilities

 19. Property Compatibility