Monday, March 23, 2009
Obama's Loan Restructuring Policy
Here's the scoop from CNN on the government's program for homeowners who want to renegotiate their home loans to be able to save their homes from foreclosure. Obama's loan restructuring policy begins with home owners contacting their lenders. Lenders just got the program specifics last Wednesday, so will take some time getting up to speed. Be persistant and patient...If you need a current home market valuation, just call me.
The Buying Process
Are you a first time homebuyer wanting to get the tax benefit for purchasing this year? Here's the scoop on the particulars of the first time homebuyer tax benefit. Even vetern homebuyers are finding this market different from past markets. For one thing, the timing is GREAT for buyers-the best we've seen in generations! Interest rates are low, prices are low, inventory is high, and, except for the less expensive investor properties, we have a buyers market! For another change, lenders are back to requiring more money down and more documentation to support each buyer's loan request. The other new thing is how many lenders and banks have been having problems. Here's a link that describes in clear terms what happened to banks in our current credit crunch and mortgage crisis. For a look beyond the morgtage loans themselves, here's a funny BBC version of the international involvement in the credit swaps which involved bundled home mortgage securities.
Home buyers keep reading. Below are the first 3 steps to purchasing a home.
1. Save your money for a downpayment and loan closing costs. The least you need to have saved is about $1300 (this is for a HUD home in specific areas for a person's primary residence to cover the $1000 required earnest money and a suggested home inspection). A standard FHA loan requires 3.5% of the purchase price for downpayment. This is paid in 2 payments. First the earnest money (for an FHA home ranging from $500-$4,000 depending on the cost of the house and the seller). The balance is due from the buyer at closing. Some grant and bond programs will help with all but $1000 of this cost. Next, loan closing costs range from 3% to 5% of the loan value. This amount is determined by the kind and size of loan and by the buyer's FICO scores. So, how can you know these variables? Go to step 2! If you're selling your home and intend to use part of the profit for the downpayment on your next home, go to step 2!
2. Select a Realtor!
If you don't know about loans already, your Realtor will and can guide you. Choose a real estate professional who is committed to more than helping you get the right home. Your realtor should also help you realize your short-term and long-term financial goals. Did you know that for most Americans, their home is their largest single investment? You want to get choose this investment wisely, right? A home is the long-term investment that most of the middle class used to grow wealth in the 1900's. You deserve a buyers agent who can give you insights in the market, loans, service providers (including lenders), things to be aware of throughout the home buying process and beyond. (Coming later will be the Top 7 Questions to Ask When Interviewing a Real Estate Agent.)
3. Contact and choose a Mortgage Lender.
Your mortgage lender will find out what you make, what you have saved, what you owe, and run an infile credit report. Based on your qualifications, your lender will discuss which loan options are best suited to you and your financial goals. Now you will also find out if there are any errors on your credit report and can get them fixed. Ask for a good faith estimate and go over it with the lenders you're interviewing. This will tell you the loan closing costs you can expect. Lenders have expenses and get paid when making loans, so there will be some loan closing costs. Different loans have different loan closing costs, so if you have saved more than the minimum 3.5% downpayment required by FHA and are considering different types of loans, ask for a good faith estimate for each loan! There are still county, city, and state bond programs for borrowers of modest means, fitting the program's criteria. Ask your lender whether or not you qualify and could consider one of these programs. You are welcome to work with any mortgage lender you choose. If you don't know a good lender or want to shop around, we have had great experiences with the several lenders and recommend them. Tell them Beth sent you to them:
Bernie & Deb Zanoni, Briston Capital Mortgage (303-597-1700) dzanoni@bristoncm.com
Pyper Lund, Colorado Mortgage Alliance/Wells Fargo (303-796-1270) pyper.lund@coloradomortgagealliance.com
Scott Wynn & Cindy Howeth, 1st Priority Home Loans (303-523-0786) swynn@1sph1.com
3. Make the decision! How do you want to finance your home?
For your long term financial and emotional well being, it's a good idea to set a budget on your new home purchase. Based on your qualifications and downpayment, the loan options you are considering will have an upper end that you can qualify for. You may want to set the ceiling a little lower on your own. The decision is yours. Set your budget and decide which loan best fits your needs.
Coming later this week, the next 3 steps in buying a home. Go here for Part 2, Part 3, Part 4.
Home buyers keep reading. Below are the first 3 steps to purchasing a home.
1. Save your money for a downpayment and loan closing costs. The least you need to have saved is about $1300 (this is for a HUD home in specific areas for a person's primary residence to cover the $1000 required earnest money and a suggested home inspection). A standard FHA loan requires 3.5% of the purchase price for downpayment. This is paid in 2 payments. First the earnest money (for an FHA home ranging from $500-$4,000 depending on the cost of the house and the seller). The balance is due from the buyer at closing. Some grant and bond programs will help with all but $1000 of this cost. Next, loan closing costs range from 3% to 5% of the loan value. This amount is determined by the kind and size of loan and by the buyer's FICO scores. So, how can you know these variables? Go to step 2! If you're selling your home and intend to use part of the profit for the downpayment on your next home, go to step 2!
2. Select a Realtor!
If you don't know about loans already, your Realtor will and can guide you. Choose a real estate professional who is committed to more than helping you get the right home. Your realtor should also help you realize your short-term and long-term financial goals. Did you know that for most Americans, their home is their largest single investment? You want to get choose this investment wisely, right? A home is the long-term investment that most of the middle class used to grow wealth in the 1900's. You deserve a buyers agent who can give you insights in the market, loans, service providers (including lenders), things to be aware of throughout the home buying process and beyond. (Coming later will be the Top 7 Questions to Ask When Interviewing a Real Estate Agent.)
3. Contact and choose a Mortgage Lender.
Your mortgage lender will find out what you make, what you have saved, what you owe, and run an infile credit report. Based on your qualifications, your lender will discuss which loan options are best suited to you and your financial goals. Now you will also find out if there are any errors on your credit report and can get them fixed. Ask for a good faith estimate and go over it with the lenders you're interviewing. This will tell you the loan closing costs you can expect. Lenders have expenses and get paid when making loans, so there will be some loan closing costs. Different loans have different loan closing costs, so if you have saved more than the minimum 3.5% downpayment required by FHA and are considering different types of loans, ask for a good faith estimate for each loan! There are still county, city, and state bond programs for borrowers of modest means, fitting the program's criteria. Ask your lender whether or not you qualify and could consider one of these programs. You are welcome to work with any mortgage lender you choose. If you don't know a good lender or want to shop around, we have had great experiences with the several lenders and recommend them. Tell them Beth sent you to them:
Bernie & Deb Zanoni, Briston Capital Mortgage (303-597-1700) dzanoni@bristoncm.com
Pyper Lund, Colorado Mortgage Alliance/Wells Fargo (303-796-1270) pyper.lund@coloradomortgagealliance.com
Scott Wynn & Cindy Howeth, 1st Priority Home Loans (303-523-0786) swynn@1sph1.com
3. Make the decision! How do you want to finance your home?
For your long term financial and emotional well being, it's a good idea to set a budget on your new home purchase. Based on your qualifications and downpayment, the loan options you are considering will have an upper end that you can qualify for. You may want to set the ceiling a little lower on your own. The decision is yours. Set your budget and decide which loan best fits your needs.
Coming later this week, the next 3 steps in buying a home. Go here for Part 2, Part 3, Part 4.
Tuesday, March 3, 2009
What Really Happened to Denver Real Estate in 2008?
How does Denver Northeast compare to the Denver Northeast Suburbs, like Green Valley Ranch and Montbello? Is it really a seller's market in Denver Southwest? How has Ken Caryl been affected as a Denver Southwest Suburb? Why does Douglas County show such a loss in average home price? Has Aurora hit the bottom of prices in 2008? How was the upper end of the market being affected? Did parts of Denver Southeast and Denver Northwest Suburbs, like Westminster and Golden, really hold their own and post a modest gain? and other conundrums for Denver real estate watchers....
READY for YOU-our Denver Real Estate Market Study for 2008. Link to this site and then check out the report for your area of town. Be sure to tell us how this data fits your subjective experiences of the market, since each transaction is personal, even though the market it not. When you read do you see where your opportunities lie right now?
We'll be updating the data monthly, so you can follow the trends more closely, if you wish.
Click on this link for the report. It will take a bit to download, since the report with all the graphs and explanations is long.
READY for YOU-our Denver Real Estate Market Study for 2008. Link to this site and then check out the report for your area of town. Be sure to tell us how this data fits your subjective experiences of the market, since each transaction is personal, even though the market it not. When you read do you see where your opportunities lie right now?
We'll be updating the data monthly, so you can follow the trends more closely, if you wish.
Click on this link for the report. It will take a bit to download, since the report with all the graphs and explanations is long.
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