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Buying From For Sale By Owners.

06-12-07
David Kosmecki
David Kosmecki: Loan Officer in Maple Grove, MN
  • view my blog
  • Office: (763) 519-1100
  • Mobile: (763) 519-1100

In my short video, I explain why FSBOs may not be the "best deal". I think they need to be considered, especially if they are underpriced but more times than not, they are overpriced. Typically the buyers lack negoitiating power when it comes to For Sale By Owners. This video is cumulation of my twenty-seven years of experiance in the real estate, new home constuction and mortgage industries.

David Kosmecki - Guaranteed Rate, Inc.

website: http://www.homeloansmidwest.com/

youtube channel: http://www.youtube.com/midwesthomeloans

blog: http://www.homeloansmidwestblog.com/

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Rate Locks!

06-12-07
David Kosmecki
David Kosmecki: Loan Officer in Maple Grove, MN
  • view my blog
  • Office: (763) 519-1100
  • Mobile: (763) 519-1100

Here is my next video in the series. It is all about rate locks. In the video I explain the difference between "Hard" locks and "Float Down" locks. I discuss the you need to get a written confirmation.

Rate Locks vary in length and of course, the long the term of the lock the more expensive it is. That cost can be charged as a fee or burried in the rate charged.

Dave Kosmecki - Guaranteed Rate, Inc.

website: http://www.homeloansmidwest.com/

youtube channel: http://www.youtube.com/midwesthomeloans

blog: http://www.homeloansmidwestblog.com/

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Study Wetland Flora and Fauna.

06-11-07
David Kosmecki
David Kosmecki: Loan Officer in Maple Grove, MN
  • view my blog
  • Office: (763) 519-1100
  • Mobile: (763) 519-1100

Volunteers Help Preserve our Past, Present and Future:

Study Wetland Flora and Fauna.

Have you ever really experienced the living wonder of a wetland? Come explore and monitor our local wetlands. Last summer over 50 adult volunteers in Hennepin County did by participating in the Wetland Health Evaluation Program (WHEP). These volunteers spent up to 50 hours wading through wetlands to collect and identify dragonflies, cattails, sedges and more. The presence or absence of these plants and animals tells us a lot about the health of a wetland ecosystem. Volunteers do not need a science background or any previous monitoring experience to participate. Necessary training, equipment, and leadership are provided; the volunteers bring the enthusiasm!

Join others in your community to learn wetland flora and fauna, as well as the many vital roles wetlands play in preserving the quality of our waters.

The WHEP provides a great learning opportunity for those involved as well as strong data for our many partners to use in water management plans, wetland protection, and water quality improvements. Teams are forming throughout Hennepin County. For more information or to become a volunteer call Tony Brough at Hennepin County (612) 348-4378 or visit www.mnwhep.org.

Calling all GardenersVolunteers are needed to assist Colleen Hazen, Gardener for the City of Maple Grove, at the Banquet Garden/Community Center and the Arbor Lakes Garden. Volunteers will weed a garden and trim fading flowers at their own convenience. Training is provided and garden tools are available. For more information or to volunteer, please call Colleen at (763) 494-9655.

Maple Grove Historical Preservation SocietyHelp discover, preserve and spread the story of Maple Grove. Join the Historical Preservation Society at 7 p.m. the third Thursday of the month at the Government Center.

Everyone is welcome! Call (763) 494-5983 for more information.

Calling all GardenersVolunteers are needed to assist Colleen Hazen, Gardener for the City of Maple Grove, at the Banquet Garden/Community Center and the Arbor Lakes Garden. Volunteers will weed a garden and trim fading flowers at their own convenience. Training is provided and garden tools are available. For more information or to volunteer, please call Colleen at (763) 494-9655.

Maple Grove Historical Preservation SocietyHelp discover, preserve and spread the story of Maple Grove. Join the Historical Preservation Society at 7 p.m. the third Thursday of the month at the Government Center.

Everyone is welcome! Call (763) 494-5983 for more information.

David Kosmecki - Guaranteed Rate, Inc.

website: http://www.homeloansmidwest.com/

youtube channel: http://www.youtube.com/midwesthomeloans

blog: http://www.homeloansmidwestblog.com/

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Blog_tag

Option ARM Basics

06-01-07
David Kosmecki
David Kosmecki: Loan Officer in Maple Grove, MN
  • view my blog
  • Office: (763) 519-1100
  • Mobile: (763) 519-1100

An option arm is an adjustable rate mortgage with the added flexibility of being able to choose from a variety of payment options from month to month. Option Arm's go by many different names including 'cash flow option loan', 'pick a payment loan', '1-month MTA', and so forth. The increased flexibility of these programs can help an individual better manage their cash flow. However, there are certain pitfalls that any borrower considering an option arm should be aware of. Don't just get lured in by the promise of a low introductory rate. The best way to know if an option arm is the right program for you is to start with the basics.

What are the Options?
Typically, the borrower can choose from 4 different payment options each representing a different loan program. The borrower will have 2 fully amortized payment choices representing a 30-year and a 15-year loan. These will be the highest monthly payment options and the fastest way for the borrower to build up equity. Making additional payments to the principal will build equity even faster. This will further reduce the amount needed to be paid back over the following years.

The 3rd major payment option will represent an interest-only program. The interest rate will change from month to month based on changes in the ARM index. The borrower will basically be paying just the monthly interest expense without putting any money towards the principal of the loan. This option will be available as long as the interest-only payment is higher than the minimum payment option.

The minimum payment option is always going to be just that, the choice that requires the borrower to pay the least amount of money towards the loan. The minimum payment interest rate will be set for a specified time period (usually 1yr). The payment changes annually after that based on limits placed on how much the interest rate can increase or decrease from year to year. After the initial interest rate period, the minimum payment option may not be enough to cover the monthly interest expense that is being incurred. This will lead to 'deferred interest' or 'negative amortization' and is where the borrower can get into trouble.

Who should use an Option ARM?
Option ARM's are generally used by borrowers who are not planning to own the property for a long period of time and prefer the flexibility of the monthly payment. Most lenders will recommend that the borrower only goes as low as the interest-only payment option. This ensures that the borrower will never be surprised by the deferred interest that is created when choosing the minimum option. Other individuals use these types of loan programs to buy more house than they could otherwise afford. For this reason, Option Arm's are growing in popularity in areas where there is a high cost for housing. The East and West coasts especially. When a borrower uses an Option Arm to buy more house than they can afford they leave themselves at the mercy of interest rates. Rates rise and so do the borrower's monthly payments. If the borrower can only make the minimum payment the unpaid interest gets deferred and added to the principal. This is known as 'negative amortization' and can cause the borrower to end up owing more than he or she borrowed at the end of the loan term. This can come as quite a surprise to a borrower who enters into an Option ARM and is not aware of the pitfalls. That is why the interest only payment option should be the lowest payment the borrower should make unless absolutely necessary. The borrower will not have to worry about negative amortization as long as they pay at least the interest-only option amount or more.

If you enter into an Option ARM you must be able to maintain a high degree of financial discipline. You should also do your research and familiarize yourself with the ins and outs of Option ARM's above and beyond what is included in this article. Your local mortgage broker, Company Name, is a good place to start. An experienced loan officer will be able to provide you more in-depth information based on your credit score. Be sure to ask questions and compare other loan programs to your financing needs. Option Arm's offer a high degree of financial flexibility but also bring with them a high degree of risk if used recklessly. The more you know about the ins and outs of Option ARM's the better position you will be in to make a wise decision.

The minimum payment option is always going to be just that, the choice that requires the borrower to pay the least amount of money towards the loan. The minimum payment interest rate will be set for a specified time period (usually 1yr). The payment changes annually after that based on limits placed on how much the interest rate can increase or decrease from year to year. After the initial interest rate period, the minimum payment option may not be enough to cover the monthly interest expense that is being incurred. This will lead to "deferred interest" or "negative amortization" and is where the borrower can get into trouble.

If you want more information, view my website's at:

Dave Kosmecki - Guaranteed Rate, Inc.

website: http://www.homeloansmidwest.com/

youtube channel: http://www.youtube.com/midwesthomeloans

blog: http://www.homeloansmidwestblog.com/

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Blog_tag

Major Mistakes Buyers Make and How to Avoid Them!

05-30-07
David Kosmecki
David Kosmecki: Loan Officer in Maple Grove, MN
  • view my blog
  • Office: (763) 519-1100
  • Mobile: (763) 519-1100

Failing To Have a Plan: Evaluate your current situation. Why are you planning to sell your house? Are you moving up to a larger house? Do you need the money out of this house to make your move? One thing you need to do is to get a realistic idea of exactly How much cash you will be getting out of this house when it sells. Are you going to move locally? What mortgage amount can you really afford with payments including higher taxes and insurance? Can you afford a house significantly better than the one you already have? Are you moving down to a smaller property? What are you going to do with your furniture and other things that you have collected over the years? Will you be comfortable in a smaller place? Are you retiring? Moving locally or out of state? Are you going into a retirement community? What activities do you expect to be involved in after working days are over? Are you moving out of the area because of employment? How fast do you have to be in your new location? Are housing costs higher there, or lower? Is your employer helping with sales costs, moving costs and costs of temporary housing, etc? How does your family feel about the move? One reluctant teenager can seriously undermine the entire process. Are you the executor of an estate? What is the time schedule for your plan?

Failing To Take a Hard, Serious Look at The Condition of the House: Houses show wear, paint gets dull and shabby, landscaping can become overgrown, and roofs deteriorate. Often times as we live in a house we "live with" minor inconveniences that we intend to fix "some day." It is not unusual not to notice conditions that are glaringly obvious to a buyer. How old is your roof? The average lifespan is 25 yrs. How old is your furnace? The average lifespan is 15 yrs. How old is your hot water heater? The average lifespan is 10 yrs. Is there asbestos insulation covering your heat pipes in the basement? Do you have a septic system? Has it been pumped and fully inspected within the last two years? Is there any obvious water damage from old leaks? Have you had any improvements done to the house without permits and inspections? Are your hardwood floors scuffed and scratched? Are your carpets worn? Real estate law is extensive and complex; the contract or sale and purchase is a legally binding document. An improperly written contract can cause the sale to fall apart or cost you thousands of dollars for repairs, inspections, and remedies for title defects. If there are defects in the title, or if the property is in conflict with local restrictions, you must remedy them. Some States require a "Seller's Disclosure" form to be filled out when the property is offered for sale. An attorney is recommended for all real estate transactions. However, all attorneys are not real estate specialists. Your Realtor should be able to recommend several good attorneys. It is your REALTOR's® job to know the laws governing real estate transactions. They are required to attend ongoing training programs to keep up to date with these laws. You deserve to have an agent who is not only knowledgeable about the transaction but is also willing to educate you throughout the process so you will feel more comfortable.

Pricing the House Incorrectly:Whether a house is priced too high or too l how, it can cost you thousands of dollars. Obviously, a house priced too low will net you less cash at closing. However, a house priced too high will take longer to sell. The homebuyer today is an educated consumer. On average, a buyer will see 18 homes before purchasing. The house that sells today is the best one on the market in the price range. The sale of a house is a competitive enterprise. Ask your Realtor to show you what homes you are competing against. Some people will say, "I can always lower my price later". Both Realtors and buyers are looking for new listings. Rarely do they notice a reduced price. The saddest sign anyone can put on a sign rider is "Price Reduced". That means the house was not priced right in the first place. The buyers will ask, "If the price was wrong, what else is wrong?"

Failing To Obtain A Home Inspection From A Qualified Inspector: The job of a professional home inspector is to look over every major part of a home and write a report that judges the homes quality and condition. A home inspector reports on the structural and mechanical condition of the home. A well-qualified inspector who adhered to federal licensing standards can spot problems that you might not be able to see. Expect problems to be clearly explained, repair expenses closely calculated, maintenance costs estimated, and a written report delivered within a day or two. Most-contracts are contingent upon the outcome of several inspections such as: wood-boring insects, excessive amounts of radon gas, structural soundness, and the condition of the heating, electrical, and plumbing systems. These problems must be corrected or the buyer hasevery right to cancel the contract.Getting an inspectionup front can save money by giving you time to shop for the best repair price instead under pressure.

Failing To Be Pre-Approved for the Mortgage on the Next House: Do not waste hours searching for a home that is not in your price range! Save time and money by pre-qualifying for a loan. Before you go shopping for a home, you need to determine how much you can afford.

Failing To Take a Hard, Serious Look at The Condition of the House!

For more information, visit my website's:

Dave Kosmecki - Guaranteed Rate, Inc.

website: http://www.homeloansmidwest.com/

youtube channel: http://www.youtube.com/midwesthomeloans

blog: http://www.homeloansmidwestblog.com/

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