Next year, housing prices will likely drop 5-10% nationally-finally hitting bottom, according to Altos research, a real estate data company.
That doesn't mean that we're instantly going to bounce out of that trough. Expect local price instability. Early 2011 will bring the usual seasonal bounce in prices, similar to this year's period of price stabilization that occurred before the expiration of the home buyer tax credit.
Altos' latest housing market update projected that an uptick in seasonal demand would start to be visible in the third week of January. But two supply trends will ultimately drive prices lower next year; rising inventory and lower quality of that inventory, mainly because of foreclosures and short sales. Foreclosures are released in bundles, otherwise, the market would be inundated with these homes
We are not going to see improvement until 2012. It will come quicker than you think. So, hang in there. However, if you are struggling to keep your home and need help because you're not sure what to do next, contact me. I am a short sale foreclosure representative. Let me help. If you just want to sell or buy a home, I can help you with that as well. Call me, Lisa Longest at 443-786-4200 or email me at lisalongest@exitgoldrealty.com I specialize in Stevensville MD and surrounding areas.
Wednesday, December 22, 2010
Tuesday, December 21, 2010
How To Rebuild Your Credit After Foreclosure
How To Rebuild Your Credit After Foreclosure
If you’ve been through a foreclosure, you may wonder if there is hope for you to become a homeowner again. The answer is yes, but it will take a while.
A foreclosure is a major hit to your credit history and stays on your credit report for seven years.
Foreclosure is one of the FICO seven deadliest, regardless of the back story— whether it’s a job loss, rate reset, underemployment or other reasons.
So, after a foreclosure, your priority has to be rebuilding your credit. You’ll have some time to do so, because mortgage giants Fannie Mae and Freddie Mac impose strict rules on how long it will take before you’re eligible for another mortgage.
For example, borrowers with a prior foreclosure and extenuating circumstances—such as a job loss, divorce or medical issues—must wait three years before they can qualify for a Fannie Mae-backed loan. For all other borrowers, the waiting period is seven years.
At Freddie Mac, those who can prove extenuating circumstances must wait three years before applying for a new mortgage; everyone else must wait five years. But that will change in February, when the waiting period for those whose foreclosure was caused by their own financial mismanagement will increase to seven years.
Here’s what you need to do to rebuild your credit to qualify again for a mortgage:
Pay your bills on time: Make sure you consistently pay your bills on time. Demonstrated that you are now capable of owning a home and paying the bills, and have recovered from whatever circumstance caused the original foreclosure?
Review your credit report: You’re entitled to a free credit report once every 12 months. You should get a copy and check it for any inaccuracies.
To get your free credit report, go to http://www.annualcreditreport.com. Make sure that debts older than seven years have rotated off your report, as these could be dragging your score down unnecessarily.
Check your mortgage: You want to be sure that you don’t still owe anything on your old mortgage. Sometimes proceeds from a foreclosure sale aren’t enough to cover what’s owed on the mortgage, which would leave you owing the difference.
Make sure there is a zero balance reflected, and if you are responsible for a shortfall, make arrangements to repay the remaining balance.
Many lenders are willing to settle that “deficiency judgment” for less than what’s owed because it’s better than getting no money at all.
Apply for credit: In particular, apply for different varieties of credit. Have some revolving accounts, typically credit cards, and some installment fixed-payment loans. But be careful. Don’t apply for too much credit at once.
Don’t fall prey: Watch out for credit repair companies that promise to clean up your credit report after paying a fee for the service. The truth is, that no one can remove accurate, negative information from your credit report. It’s illegal. Only the passage of time can assure that negative, but accurate, information on your credit report will be removed.
When it comes to repairing your credit, there are no quick fixes, the experts say. What lenders want to see is responsible financial behavior over time.
Know that time is your friend, as the farther you move away from the financial distress, the less negative impact it has. Follow with responsible behavior with your new credit, and you’ll soon have a solid credit file.
If you are upside down or behind in your mortgage, don't worry. I am a default resolution specialist. Just call me, Lisa Longest at Exit Gold Realty and we will will work together through this. Call me at 443-786-4200.
If you’ve been through a foreclosure, you may wonder if there is hope for you to become a homeowner again. The answer is yes, but it will take a while.
A foreclosure is a major hit to your credit history and stays on your credit report for seven years.
Foreclosure is one of the FICO seven deadliest, regardless of the back story— whether it’s a job loss, rate reset, underemployment or other reasons.
So, after a foreclosure, your priority has to be rebuilding your credit. You’ll have some time to do so, because mortgage giants Fannie Mae and Freddie Mac impose strict rules on how long it will take before you’re eligible for another mortgage.
For example, borrowers with a prior foreclosure and extenuating circumstances—such as a job loss, divorce or medical issues—must wait three years before they can qualify for a Fannie Mae-backed loan. For all other borrowers, the waiting period is seven years.
At Freddie Mac, those who can prove extenuating circumstances must wait three years before applying for a new mortgage; everyone else must wait five years. But that will change in February, when the waiting period for those whose foreclosure was caused by their own financial mismanagement will increase to seven years.
Here’s what you need to do to rebuild your credit to qualify again for a mortgage:
Pay your bills on time: Make sure you consistently pay your bills on time. Demonstrated that you are now capable of owning a home and paying the bills, and have recovered from whatever circumstance caused the original foreclosure?
Review your credit report: You’re entitled to a free credit report once every 12 months. You should get a copy and check it for any inaccuracies.
To get your free credit report, go to http://www.annualcreditreport.com. Make sure that debts older than seven years have rotated off your report, as these could be dragging your score down unnecessarily.
Check your mortgage: You want to be sure that you don’t still owe anything on your old mortgage. Sometimes proceeds from a foreclosure sale aren’t enough to cover what’s owed on the mortgage, which would leave you owing the difference.
Make sure there is a zero balance reflected, and if you are responsible for a shortfall, make arrangements to repay the remaining balance.
Many lenders are willing to settle that “deficiency judgment” for less than what’s owed because it’s better than getting no money at all.
Apply for credit: In particular, apply for different varieties of credit. Have some revolving accounts, typically credit cards, and some installment fixed-payment loans. But be careful. Don’t apply for too much credit at once.
Don’t fall prey: Watch out for credit repair companies that promise to clean up your credit report after paying a fee for the service. The truth is, that no one can remove accurate, negative information from your credit report. It’s illegal. Only the passage of time can assure that negative, but accurate, information on your credit report will be removed.
When it comes to repairing your credit, there are no quick fixes, the experts say. What lenders want to see is responsible financial behavior over time.
Know that time is your friend, as the farther you move away from the financial distress, the less negative impact it has. Follow with responsible behavior with your new credit, and you’ll soon have a solid credit file.
If you are upside down or behind in your mortgage, don't worry. I am a default resolution specialist. Just call me, Lisa Longest at Exit Gold Realty and we will will work together through this. Call me at 443-786-4200.
Smart To Buy A Vacation Home Now
Lately, you've been thinking alot about investing strategies. You have a small nest egg that needs to grow, but frankly, you don't trust the stock market. And while real estate has been somewhat a rocky road in recent years, it's still a solid long-term investment strategy-and clearly we are in a buyer's market. But you aren't interested in being a landlord. So what can you do?
Purchase a vacation home and rent it out to travelers! Vacation homes are almost always a good investment. Why? Vacation properties have the ability to pay for themselves, and owners often earn a profit in rental income. Also, the investment comes with the desirable perk of having a place at the beach or in the mountains to call your own.
Here is why there's never been a better time to go vacation house hunting:
1. There's never been so many properties on the market. Once you have pinpointed the vacation rental market that is right for you-the coast, the mountains, ski resort area- you will likely have a lot of properties to choose from.
2. Prices aren't going to get much better. In fact, they're the lowest they've been in five to ten years.
3. Interest rates are very favorable for purchasing. Take advantage of them while they last.
4. You have access to the best real estate professionals. Anyone connected to the housing market who managed to survive the housing crash had to be at the top of his or her game. That means the agents left standing are possibly the best of the best.
5. It's never been easier to rent your vacation home. More and more consumers are choosing to stay in cozy condos, cabins,and chalets instead of cramped, impersonal hotel rooms when they travel.
6. If you buy now, you can be ready for the 2011 peak season. Experienced vacation homeowners often find that the rental fees generated during the twelve weeks between Memorial Day and Labor Day pay their mortgages for an entire year-and most inquiries come between January and March.
So, if you're ready to make the move on buying a vacation home, give me a call, Lisa Longest, with Exit Gold Realty to start the search. Call me at 443-786-4200 or my office at 410-643-4111
Purchase a vacation home and rent it out to travelers! Vacation homes are almost always a good investment. Why? Vacation properties have the ability to pay for themselves, and owners often earn a profit in rental income. Also, the investment comes with the desirable perk of having a place at the beach or in the mountains to call your own.
Here is why there's never been a better time to go vacation house hunting:
1. There's never been so many properties on the market. Once you have pinpointed the vacation rental market that is right for you-the coast, the mountains, ski resort area- you will likely have a lot of properties to choose from.
2. Prices aren't going to get much better. In fact, they're the lowest they've been in five to ten years.
3. Interest rates are very favorable for purchasing. Take advantage of them while they last.
4. You have access to the best real estate professionals. Anyone connected to the housing market who managed to survive the housing crash had to be at the top of his or her game. That means the agents left standing are possibly the best of the best.
5. It's never been easier to rent your vacation home. More and more consumers are choosing to stay in cozy condos, cabins,and chalets instead of cramped, impersonal hotel rooms when they travel.
6. If you buy now, you can be ready for the 2011 peak season. Experienced vacation homeowners often find that the rental fees generated during the twelve weeks between Memorial Day and Labor Day pay their mortgages for an entire year-and most inquiries come between January and March.
So, if you're ready to make the move on buying a vacation home, give me a call, Lisa Longest, with Exit Gold Realty to start the search. Call me at 443-786-4200 or my office at 410-643-4111
Pro's and Con's Of Open Houses
This has always been a dilemma. Do we or don't we hold an open house?
Here are a few things to consider:
Pro's: Home sellers who allow their Realtor to hold an open house benefits from greater exposure, and the open house allows agents to bring in clients over a 3 or 4 hour period instead of scheduling an appointment. The seller would rather vacate the premises for a single event, rather than every time the agent schedules a showing.
Con's: Agents could be focused on meeting potential new clients rather than focusing on selling the home. Items could be stolen by unscrupulous visitors, and a large volume of traffic in and out could result in damage or wear and tear on the floors.
So if you are a seller who is willing to hold an open house, you should leave with their pets during the open house time frame, ensure the home is neat and clean, use lighting and temperature to create a comfortable atmosphere, and remove any fragile objects or valuables.
Presented by Lisa Longest, Exit Gold Realty. Specializing in home sales in Stevensville Md and surrounding areas. Contact me at 443-786-4200
Here are a few things to consider:
Pro's: Home sellers who allow their Realtor to hold an open house benefits from greater exposure, and the open house allows agents to bring in clients over a 3 or 4 hour period instead of scheduling an appointment. The seller would rather vacate the premises for a single event, rather than every time the agent schedules a showing.
Con's: Agents could be focused on meeting potential new clients rather than focusing on selling the home. Items could be stolen by unscrupulous visitors, and a large volume of traffic in and out could result in damage or wear and tear on the floors.
So if you are a seller who is willing to hold an open house, you should leave with their pets during the open house time frame, ensure the home is neat and clean, use lighting and temperature to create a comfortable atmosphere, and remove any fragile objects or valuables.
Presented by Lisa Longest, Exit Gold Realty. Specializing in home sales in Stevensville Md and surrounding areas. Contact me at 443-786-4200
Home Staging Tips
Selling a home in any market can be competitive. It's essential that you follow some simple, yet important tips to help you make your home more salable.
A quicker home sale can be reached by keeping in mind the needs of the home's most likely buyer and creating a fresh inspiring look just for them. The difference between a "For Sale" and a "SOLD" sign often boils down to effective staging a home to appeal to either the young singles, families, or empty nesters- the 3 largest customer segments that are likely to make an offer, and, since everyone likes an updated home, here are a few simple refreshes that can and should be done:
For all groups: A technology overhaul. Flat screen TV's, laptop computers, iPods with docking stations, and wireless technology have eliminated the need of large bulky entertainment centers, and massive desks designed to hide wires.
An absolute must is color! Most sellers are instructed to use neutral colors when repainting. However, adding the right color to accent walls can create depth, enhance kitchen cabinets, or bring a dull bathroom to life. Or you use colors in simple accessories, like throw pillows, canisters, or flowers.
However, use caution with your color choices. Be aware of their sensory impact:
RED: Stimulating
ORANGE: Happiness
YELLOW: Uplifting
BLUE: Calming in softer tones; Clarity in deeper tones
GREEN: Fresh and Rejuvenating
PURPLE: Compassion
AQUA: Restful
For Singles: Singles spend alot of time in the bedroom and the living room, which are their sanctuary from the outside world. So there is no need to set up a dining room with such things a s place settings. Instead, focus on the flat screen TV on a simple stand and candles in the bedroom and bathroom.
Families: Include age appropriate bedding, linens, and towels. A bright rug near play areas, and toy chest with an open lid. And don't forget the garage when staging your home for this group of buyers. Organize children's toys and sports equipment to showcase the garage's storage capacity without compromising functionality.
Empty Nesters: Upgrading the bathroom with accessories or decorative hanging lights will make an impact. If the budget allows, upgrade the refrigerator, stove and dishwasher. Lighting is also important to this group of buyer. Living spaces should maximize natural light, or add lamps or ceiling fans with light fixtures.
So experiment and put yourself in the buyer's shoes. Ask a friend or relative to be brutally honest of the before and after you have staged your home. You may be surprised how little changes, with a little budget, can make a huge difference to a buyer.
So, if you are ready to list your home, or buy one, in the Stevensville Md or surrounding areas, contact Lisa Longest, Exit Gold Realty to assist you. Or if you have questions regarding staging your home, feel free to contact me at 443-786-4200.
A quicker home sale can be reached by keeping in mind the needs of the home's most likely buyer and creating a fresh inspiring look just for them. The difference between a "For Sale" and a "SOLD" sign often boils down to effective staging a home to appeal to either the young singles, families, or empty nesters- the 3 largest customer segments that are likely to make an offer, and, since everyone likes an updated home, here are a few simple refreshes that can and should be done:
For all groups: A technology overhaul. Flat screen TV's, laptop computers, iPods with docking stations, and wireless technology have eliminated the need of large bulky entertainment centers, and massive desks designed to hide wires.
An absolute must is color! Most sellers are instructed to use neutral colors when repainting. However, adding the right color to accent walls can create depth, enhance kitchen cabinets, or bring a dull bathroom to life. Or you use colors in simple accessories, like throw pillows, canisters, or flowers.
However, use caution with your color choices. Be aware of their sensory impact:
RED: Stimulating
ORANGE: Happiness
YELLOW: Uplifting
BLUE: Calming in softer tones; Clarity in deeper tones
GREEN: Fresh and Rejuvenating
PURPLE: Compassion
AQUA: Restful
For Singles: Singles spend alot of time in the bedroom and the living room, which are their sanctuary from the outside world. So there is no need to set up a dining room with such things a s place settings. Instead, focus on the flat screen TV on a simple stand and candles in the bedroom and bathroom.
Families: Include age appropriate bedding, linens, and towels. A bright rug near play areas, and toy chest with an open lid. And don't forget the garage when staging your home for this group of buyers. Organize children's toys and sports equipment to showcase the garage's storage capacity without compromising functionality.
Empty Nesters: Upgrading the bathroom with accessories or decorative hanging lights will make an impact. If the budget allows, upgrade the refrigerator, stove and dishwasher. Lighting is also important to this group of buyer. Living spaces should maximize natural light, or add lamps or ceiling fans with light fixtures.
So experiment and put yourself in the buyer's shoes. Ask a friend or relative to be brutally honest of the before and after you have staged your home. You may be surprised how little changes, with a little budget, can make a huge difference to a buyer.
So, if you are ready to list your home, or buy one, in the Stevensville Md or surrounding areas, contact Lisa Longest, Exit Gold Realty to assist you. Or if you have questions regarding staging your home, feel free to contact me at 443-786-4200.
Home Staging Tips
Selling a home in any market can be competitive. It's essential that you follow some simple, yet important tips to help you make your home more salable.
A quicker home sale can be reached by keeping in mind the needs of the home's most likely buyer and creating a fresh inspiring look just for them. The difference between a "For Sale" and a "SOLD" sign often boils down to effective staging a home to appeal to either the young singles, families, or empty nesters- the 3 largest customer segments that are likely to make an offer, and, since everyone likes an updated home, here are a few simple refreshes that can and should be done:
For all groups: A technology overhaul. Flat screen TV's, laptop computers, iPods with docking stations, and wireless technology have eliminated the need of large bulky entertainment centers, and massive desks designed to hide wires.
An absolute must is color! Most sellers are instructed to use neutral colors when repainting. However, adding the right color to accent walls can create depth, enhance kitchen cabinets, or bring a dull bathroom to life. Or you use colors in simple accessories, like throw pillows, canisters, or flowers.
However, use caution with your color choices. Be aware of their sensory impact:
RED: Stimulating
ORANGE: Happiness
YELLOW: Uplifting
BLUE: Calming in softer tones; Clarity in deeper tones
GREEN: Fresh and Rejuvenating
PURPLE: Compassion
AQUA: Restful
For Singles: Singles spend alot of time in the bedroom and the living room, which are their sanctuary from the outside world. So there is no need to set up a dining room with such things a s place settings. Instead, focus on the flat screen TV on a simple stand and candles in the bedroom and bathroom.
Families: Include age appropriate bedding, linens, and towels. A bright rug near play areas, and toy chest with an open lid. And don't forget the garage when staging your home for this group of buyers. Organize children's toys and sports equipment to showcase the garage's storage capacity without compromising functionality.
Empty Nesters: Upgrading the bathroom with accessories or decorative hanging lights will make an impact. If the budget allows, upgrade the refrigerator, stove and dishwasher. Lighting is also important to this group of buyer. Living spaces should maximize natural light, or add lamps or ceiling fans with light fixtures.
So experiment and put yourself in the buyer's shoes. Ask a friend or relative to be brutally honest of the before and after you have staged your home. You may be surprised how little changes, with a little budget, can make a huge difference to a buyer.
So, if you are ready to list your home, or buy one, in the Stevensville Md or surrounding areas, contact me, Lisa Longest at Exit Gold Realty to assist you. Or if you have questions regarding staging your home, feel free to contact me at 443-786-4200.
A quicker home sale can be reached by keeping in mind the needs of the home's most likely buyer and creating a fresh inspiring look just for them. The difference between a "For Sale" and a "SOLD" sign often boils down to effective staging a home to appeal to either the young singles, families, or empty nesters- the 3 largest customer segments that are likely to make an offer, and, since everyone likes an updated home, here are a few simple refreshes that can and should be done:
For all groups: A technology overhaul. Flat screen TV's, laptop computers, iPods with docking stations, and wireless technology have eliminated the need of large bulky entertainment centers, and massive desks designed to hide wires.
An absolute must is color! Most sellers are instructed to use neutral colors when repainting. However, adding the right color to accent walls can create depth, enhance kitchen cabinets, or bring a dull bathroom to life. Or you use colors in simple accessories, like throw pillows, canisters, or flowers.
However, use caution with your color choices. Be aware of their sensory impact:
RED: Stimulating
ORANGE: Happiness
YELLOW: Uplifting
BLUE: Calming in softer tones; Clarity in deeper tones
GREEN: Fresh and Rejuvenating
PURPLE: Compassion
AQUA: Restful
For Singles: Singles spend alot of time in the bedroom and the living room, which are their sanctuary from the outside world. So there is no need to set up a dining room with such things a s place settings. Instead, focus on the flat screen TV on a simple stand and candles in the bedroom and bathroom.
Families: Include age appropriate bedding, linens, and towels. A bright rug near play areas, and toy chest with an open lid. And don't forget the garage when staging your home for this group of buyers. Organize children's toys and sports equipment to showcase the garage's storage capacity without compromising functionality.
Empty Nesters: Upgrading the bathroom with accessories or decorative hanging lights will make an impact. If the budget allows, upgrade the refrigerator, stove and dishwasher. Lighting is also important to this group of buyer. Living spaces should maximize natural light, or add lamps or ceiling fans with light fixtures.
So experiment and put yourself in the buyer's shoes. Ask a friend or relative to be brutally honest of the before and after you have staged your home. You may be surprised how little changes, with a little budget, can make a huge difference to a buyer.
So, if you are ready to list your home, or buy one, in the Stevensville Md or surrounding areas, contact me, Lisa Longest at Exit Gold Realty to assist you. Or if you have questions regarding staging your home, feel free to contact me at 443-786-4200.
Friday, July 9, 2010
BRAC movers will receive mortgage assistance
July 8, 2010 - Military workers moving to Maryland as part of a Department of Defense relocating effort will be offered mortgage assistance.
After a five year wait, the Base Realignment and Closure process in Maryland is coming to fruition, meaning that thousands of military workers will be moving to the area in the coming months and years. Some of those workers could be eligible to receive state assistance and lower mortgage rates, announced Lieutenant Governor Anthony Brown.
Maryland has set aside $100 million in mortgage assistance funds and will cut the rate on state-provided home loans to 4.5 percent, an all-time low, said Brown.
"With this new initiative, we are rolling out the red carpet to welcome these new families to Maryland by providing access to affordable homeownership opportunities through the state's low-interest, fixed-rate mortgages," he said.
Homes in ten Maryland counties will be eligible for the state assistance, including Anne Arundel, Baltimore, Baltimore City, Carroll, Cecil, Frederick, Harford, Howard, Montgomery and Prince George's. The state's Department of Housing and Community Development expects to provide about 625 mortgages.
The Maryland Mortgage Program has been in existence for 30 years and provides affordable loans through over 50 private lenders across the state, said the DHCD.
So, contact Lisa Longest, Exit Gold Realty to help you find a home that qualifies for this assistance.
After a five year wait, the Base Realignment and Closure process in Maryland is coming to fruition, meaning that thousands of military workers will be moving to the area in the coming months and years. Some of those workers could be eligible to receive state assistance and lower mortgage rates, announced Lieutenant Governor Anthony Brown.
Maryland has set aside $100 million in mortgage assistance funds and will cut the rate on state-provided home loans to 4.5 percent, an all-time low, said Brown.
"With this new initiative, we are rolling out the red carpet to welcome these new families to Maryland by providing access to affordable homeownership opportunities through the state's low-interest, fixed-rate mortgages," he said.
Homes in ten Maryland counties will be eligible for the state assistance, including Anne Arundel, Baltimore, Baltimore City, Carroll, Cecil, Frederick, Harford, Howard, Montgomery and Prince George's. The state's Department of Housing and Community Development expects to provide about 625 mortgages.
The Maryland Mortgage Program has been in existence for 30 years and provides affordable loans through over 50 private lenders across the state, said the DHCD.
So, contact Lisa Longest, Exit Gold Realty to help you find a home that qualifies for this assistance.
Thursday, July 1, 2010
Recent Housing Market Disappointing
The treasury and mortgage markets have been on a steady climb as of late. There continue to be signs that the economic recovery and housing, in particular, have hit some bumps in the road. Home sales in May were very disappointing after big gains were seen in March and April as a result of the home buyer tax credit. Some housing analysts are predicting further dips in home prices ahead. European woes and reported slowing growth in China have added to the strength of the treasury market. If you have any questions or concerns for our local market in Queen Anne County or surrounding counties, feel free to contact me.
Monday, June 28, 2010
Loans at Risk For Some Buyers!
Fannie Mae's new "Loan Quality Initiative" went into effect on June 1, 2010... which means that loans may be at risk for some buyers. Here's what you need to know-and what you need to do- to keep your deals from blowing up right before closing.
Undisclosed debt is a leading cause of mortgage fraud and early payment loan defaults. That's why, as of June 1, lenders who originate mortgages that will be sold to Fannie Mae are being advised to pull a second credit report on many transactions just before the loan closes. By reviewing a second credit report, lenders can find out whether other creditors have recently requested information about the mortgage applicant, or uncover situations in which an applicant might be trying to obtain other loans for things like a new car, home furnishings, etc. If this creates any negative changes to the credit report, the result could be a higher interest rate and/or fees, or, even worse, the loan could be denied altogether!
So, please read below the top 10 credit don'ts during the loan process so you will know exactly what you need to do and not do when in the process of purchasing a home.
Please don't hesitate to contact me if I can answer any questions at all for you about this important news from Fannie Mae.
1. Don't do anything that will cause a red flag to be raised by the scoring system.
2. Don't apply for new credit of any kind.
3. Don't pay off collections or charge offs during the loan process.
4. Don't max out or over charge on your credit card accounts.
5. Don't consolidate your debt onto 1 or 2 credit cards. It appears your are maxed out.
6. Don't close credit card accounts. It will appear to the FICO that your debt ratio has gone up.
7. Don't pay late!
8. Don't allow any accounts to run past due-even 1 day!
9. Don't dispute anything on your credit report once the loan process has started.
10. Don't lose contact with your mortgage and real estate professionals.
Undisclosed debt is a leading cause of mortgage fraud and early payment loan defaults. That's why, as of June 1, lenders who originate mortgages that will be sold to Fannie Mae are being advised to pull a second credit report on many transactions just before the loan closes. By reviewing a second credit report, lenders can find out whether other creditors have recently requested information about the mortgage applicant, or uncover situations in which an applicant might be trying to obtain other loans for things like a new car, home furnishings, etc. If this creates any negative changes to the credit report, the result could be a higher interest rate and/or fees, or, even worse, the loan could be denied altogether!
So, please read below the top 10 credit don'ts during the loan process so you will know exactly what you need to do and not do when in the process of purchasing a home.
Please don't hesitate to contact me if I can answer any questions at all for you about this important news from Fannie Mae.
1. Don't do anything that will cause a red flag to be raised by the scoring system.
2. Don't apply for new credit of any kind.
3. Don't pay off collections or charge offs during the loan process.
4. Don't max out or over charge on your credit card accounts.
5. Don't consolidate your debt onto 1 or 2 credit cards. It appears your are maxed out.
6. Don't close credit card accounts. It will appear to the FICO that your debt ratio has gone up.
7. Don't pay late!
8. Don't allow any accounts to run past due-even 1 day!
9. Don't dispute anything on your credit report once the loan process has started.
10. Don't lose contact with your mortgage and real estate professionals.
Monday, June 21, 2010
You Can Afford to Buy and Haven't...Are You Crazy?
This may be the best buyer’s market that we’ll see in our lifetimes. There are lots of legitimate reasons why a person should be taking advantage of this market if they are able.
Obviously, if a person doesn’t have the down payment or credit score, they won’t be able to seize this opportunity. If a person is concerned about losing their job, that would be a valid reason for not buying now. If you are planning on relocating in the next year or two, maybe now isn’t the time to buy.
On the other hand, if a person doesn’t own a home, has good credit and job stability, they should seriously consider capitalizing on this unique combination of opportunities. A qualified real estate professional can explain all of the reasons and even suggest some very interesting financing alternatives.
Top Ten Reasons to Buy a Home NOW
1. Interest rates incredibly low – the rates are hovering at near historic lows. Interest rates play a huge part in the cost of housing together with the price and shouldn’t be overlooked. The average mortgage interest rates for the past four decades were: 1970’s 8.9%; 1980’s 12.7%; 1990’s 8.1%; 2000’s 6.3%. Most experts agree that they’re going to rise this year.
2. Lower Prices - Recent price adjustments have made good values that haven’t been available in some situations for years. Current buyers are able to take advantage of the discounted prices.
3. Selection is good – In a seller’s market, buyers sometimes have to accept a home that may not meet their needs completely because of short supply. Inventories in most markets and certain price ranges are higher which allow buyers better choices.
4. Negotiate financing concessions – FHA, VA, and Conventional allow the seller to contribute towards financing concessions for the buyer. The money can be used for buyer’s closing costs, pre-paid items or interest rate buy down.
5. Costs for FHA loan going up – Currently, a seller can pay up to 6% of the sales price in financing concessions but the number will be reduced to 3% later this year; the date has not been announced yet. The annual MIP for FHA loans will also probably be going up this year which will increase the monthly payment. Buyers who get in now will pay the lower fees.
6. Interest and property tax deduction – the U.S. is one of the few countries in the world that allow an interest and property tax deduction for homeowner/taxpayers.
7. Source of funds with deductible interest - a homeowner can borrow up to $100,000 above their acquisition debt and deduct the interest regardless of what purpose the money is used. This is a great opportunity to consolidate debt at a lower interest rate and be able to make the interest deductible that otherwise may not have been.
8. Capital gain exclusion – the U.S. allows qualified homeowners to make a profit on their home without having to pay tax on the gain.
9. Borrowing against equity is non-taxable event – taking money out of the equity in your home does not require recognizing capital gains income.
10. The combination of reasons to buy a home may never be stronger than now.
Interest rates are going up; it is just a matter of when. Inventories are starting to be absorbed by current demand. New home construction is down considerably which could lead to higher prices due to not enough annual housing units to keep up with the population. Prices have started to climb in some markets; others will surely follow.
A basic rule of investing is to buy low and sell high. There will be some buyers who take advantage of the current opportunities and will look back and remark how fortunate they were to act when they did. There will be others who look back on these conditions and say "We should have bought then." Hindsight is always 20/20. Evaluating the present and acting takes equally clear vision. The help of a trusted professional can make the difference.
Obviously, if a person doesn’t have the down payment or credit score, they won’t be able to seize this opportunity. If a person is concerned about losing their job, that would be a valid reason for not buying now. If you are planning on relocating in the next year or two, maybe now isn’t the time to buy.
On the other hand, if a person doesn’t own a home, has good credit and job stability, they should seriously consider capitalizing on this unique combination of opportunities. A qualified real estate professional can explain all of the reasons and even suggest some very interesting financing alternatives.
Top Ten Reasons to Buy a Home NOW
1. Interest rates incredibly low – the rates are hovering at near historic lows. Interest rates play a huge part in the cost of housing together with the price and shouldn’t be overlooked. The average mortgage interest rates for the past four decades were: 1970’s 8.9%; 1980’s 12.7%; 1990’s 8.1%; 2000’s 6.3%. Most experts agree that they’re going to rise this year.
2. Lower Prices - Recent price adjustments have made good values that haven’t been available in some situations for years. Current buyers are able to take advantage of the discounted prices.
3. Selection is good – In a seller’s market, buyers sometimes have to accept a home that may not meet their needs completely because of short supply. Inventories in most markets and certain price ranges are higher which allow buyers better choices.
4. Negotiate financing concessions – FHA, VA, and Conventional allow the seller to contribute towards financing concessions for the buyer. The money can be used for buyer’s closing costs, pre-paid items or interest rate buy down.
5. Costs for FHA loan going up – Currently, a seller can pay up to 6% of the sales price in financing concessions but the number will be reduced to 3% later this year; the date has not been announced yet. The annual MIP for FHA loans will also probably be going up this year which will increase the monthly payment. Buyers who get in now will pay the lower fees.
6. Interest and property tax deduction – the U.S. is one of the few countries in the world that allow an interest and property tax deduction for homeowner/taxpayers.
7. Source of funds with deductible interest - a homeowner can borrow up to $100,000 above their acquisition debt and deduct the interest regardless of what purpose the money is used. This is a great opportunity to consolidate debt at a lower interest rate and be able to make the interest deductible that otherwise may not have been.
8. Capital gain exclusion – the U.S. allows qualified homeowners to make a profit on their home without having to pay tax on the gain.
9. Borrowing against equity is non-taxable event – taking money out of the equity in your home does not require recognizing capital gains income.
10. The combination of reasons to buy a home may never be stronger than now.
Interest rates are going up; it is just a matter of when. Inventories are starting to be absorbed by current demand. New home construction is down considerably which could lead to higher prices due to not enough annual housing units to keep up with the population. Prices have started to climb in some markets; others will surely follow.
A basic rule of investing is to buy low and sell high. There will be some buyers who take advantage of the current opportunities and will look back and remark how fortunate they were to act when they did. There will be others who look back on these conditions and say "We should have bought then." Hindsight is always 20/20. Evaluating the present and acting takes equally clear vision. The help of a trusted professional can make the difference.
Saturday, June 5, 2010
EXIT Realty Educates the Public in Free Webinar June 8: Real Estate After April 30th...What Now?
Company's U.S. President, Tami Bonnell, explains what home buyers, sellers should know now
So you didn't buy a home before the first time homebuyer tax credit expired on April 30th... what now? Are there still good deals to be had? EXIT Realty Corp. International will be hosting a free, live, public webinar designed to help consumers make smart decisions before they buy or sell a home. U.S. home buyers and sellers are encouraged to tune in for the discussion.
Entitled "Real Estate After April 30th - What Now?", the 30-minute webinar will be hosted by real estate expert and President of the US Organization of EXIT Realty Corp. International, Tami Bonnell, and will be held at two times, 4:00 pm ET and 7:00 pm ET on Tuesday, June 8th. This webinar is the second in the popular series hosted by Bonnell.
"There are still many good reasons to jump into the real estate market," says Bonnell, "but you really need to know what to look for. Educated buyers and sellers make the best decisions for their families and that's what we hope to do through this webinar series - educate. No hype, just the facts."
Bonnell will address low mortgage rates, tax deductions, 203k loans and affordability among other topics.
To register, click:
https://www2.gotomeeting.com/register/914090834 for the 4:00 pm ET session or
https://www2.gotomeeting.com/register/543685610 for the 7:00 pm ET session
About Tami Bonnell: Tami Bonnell is a thirty-year veteran of the real estate industry and was instrumental in building three major brands. Among her many achievements, she was recognized by real estate trend-watcher, Stefan Swanepoel, as one of the 100 Most Influential Women in Real Estate.
Ms Bonnell has been a featured speaker at the National Association of REALTORS® convention to the Top 500 Power Brokers, The Women’s Council of REALTORS®, Inman News Connect Conference and she will be speaking at the opening session of RISMedia’s Leadership Conference next week in New York. Along with several other national and local speaking engagements, Ms Bonnell hosts quarterly webinars educating the general public on real estate issues.
She is a wife, mother of three and grandmother of two. In her spare time she is a martial artist, coach, judge and referee.
Ms. Bonnell has been the President of the US Organization of EXIT Realty Corp. International since 2001.
So you didn't buy a home before the first time homebuyer tax credit expired on April 30th... what now? Are there still good deals to be had? EXIT Realty Corp. International will be hosting a free, live, public webinar designed to help consumers make smart decisions before they buy or sell a home. U.S. home buyers and sellers are encouraged to tune in for the discussion.
Entitled "Real Estate After April 30th - What Now?", the 30-minute webinar will be hosted by real estate expert and President of the US Organization of EXIT Realty Corp. International, Tami Bonnell, and will be held at two times, 4:00 pm ET and 7:00 pm ET on Tuesday, June 8th. This webinar is the second in the popular series hosted by Bonnell.
"There are still many good reasons to jump into the real estate market," says Bonnell, "but you really need to know what to look for. Educated buyers and sellers make the best decisions for their families and that's what we hope to do through this webinar series - educate. No hype, just the facts."
Bonnell will address low mortgage rates, tax deductions, 203k loans and affordability among other topics.
To register, click:
https://www2.gotomeeting.com/register/914090834 for the 4:00 pm ET session or
https://www2.gotomeeting.com/register/543685610 for the 7:00 pm ET session
About Tami Bonnell: Tami Bonnell is a thirty-year veteran of the real estate industry and was instrumental in building three major brands. Among her many achievements, she was recognized by real estate trend-watcher, Stefan Swanepoel, as one of the 100 Most Influential Women in Real Estate.
Ms Bonnell has been a featured speaker at the National Association of REALTORS® convention to the Top 500 Power Brokers, The Women’s Council of REALTORS®, Inman News Connect Conference and she will be speaking at the opening session of RISMedia’s Leadership Conference next week in New York. Along with several other national and local speaking engagements, Ms Bonnell hosts quarterly webinars educating the general public on real estate issues.
She is a wife, mother of three and grandmother of two. In her spare time she is a martial artist, coach, judge and referee.
Ms. Bonnell has been the President of the US Organization of EXIT Realty Corp. International since 2001.
Saturday, March 13, 2010
Mid-Shore Maryland Sees 812 Foreclosures in 2009
For homeowners, the thought of losing their home and all the hard work they have put into maintaining it can be paralyzing. But residents should know that there are programs available to help them keep there home, and that early action is the best prevention against foreclosure.
In 2009, there were 812 foreclosures filed in circuit court on the Mid-Shore- 219 in Queen Anne's County, 192 in kent, 154 in caroline, 146 in Talbot and 101 in Dorchester, according to Sandy Brown, executive director of Mid-Shore Pro Bono. (Mid-Shore Pro Bono is a new non-profit organization that provides free legal assistance to low-income families).
As soon as a homeowner sees they are going to be unable to make payments on their mortgage, contact me or Exit Gold Realty to speak to a Default Resolution Specialist. You don't have to lose your home.
In 2009, there were 812 foreclosures filed in circuit court on the Mid-Shore- 219 in Queen Anne's County, 192 in kent, 154 in caroline, 146 in Talbot and 101 in Dorchester, according to Sandy Brown, executive director of Mid-Shore Pro Bono. (Mid-Shore Pro Bono is a new non-profit organization that provides free legal assistance to low-income families).
As soon as a homeowner sees they are going to be unable to make payments on their mortgage, contact me or Exit Gold Realty to speak to a Default Resolution Specialist. You don't have to lose your home.
CASA-What is this?
CASA of Queen Anne's & kent Counties screens, trains, and supervises volunteers to advocate in the best interests of abused, neglected, and abandoned children with the goal of ensuring they are placed in safe, permanent homes. Once trained, the volunteers are sworn in as officers of the court and become Court Appointed Special Advocates (CASA). CASA is part of a nationwide organization that was started in 1977. Since that time, more than 2 million children in the foster care system throughout the United States have been helped by the organization.
What does a CASA do?
A CASA serves as an officer of the court and acts as the eyes and ears of the judge.
Forms a unique relationship with the child and meets with all those who are involved in the child's life.
Provides information to assist the judge in making well-informed decisions.
Helps to ensure that the child receives appropriate services and feels safe, comfortable,and secure.
Is sometimes the only consistent supporting person in a foster child's life.
I just recently heard of this organization and had an opportunity to hear some of the children describe their plight of abuse and neglect, and how, with the aid of CASA now have loving supportive families. I was truly moved, not only by the children, but of the volunteers who act as voices for the children. I plan on becoming a part of this organization because I want to make a difference, not only in the real estate world, but to make a difference in the life of a local child...our future.
What does a CASA do?
A CASA serves as an officer of the court and acts as the eyes and ears of the judge.
Forms a unique relationship with the child and meets with all those who are involved in the child's life.
Provides information to assist the judge in making well-informed decisions.
Helps to ensure that the child receives appropriate services and feels safe, comfortable,and secure.
Is sometimes the only consistent supporting person in a foster child's life.
I just recently heard of this organization and had an opportunity to hear some of the children describe their plight of abuse and neglect, and how, with the aid of CASA now have loving supportive families. I was truly moved, not only by the children, but of the volunteers who act as voices for the children. I plan on becoming a part of this organization because I want to make a difference, not only in the real estate world, but to make a difference in the life of a local child...our future.
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