Clients often ask me if it's really necessary to hire a real estate professional to represent them on their home purchase.
And the answer is ABSOLUTELY!
You see, there's not a single disadvantage for doing so. First and foremost, it will cost you nothing. The seller is always responsible for paying both the seller's agent and the buyer's agent. It is a free service for you. What do you have to loose?
Choosing the right Realtor is as important in the home buying process as choosing a good mortgage professional. Making sure your Realtor has your best interest in mind and takes the time to find out what's important about buying a home to you will ensure a successful outcome.
Benefits Of Using A Buyer's Agent
A great Realtor will take the time to find out your goals, needs and wants BEFORE showing you property. They will also make sure you've been pre-approved for a home loan so you don't waste time looking at properties that don't fit your financial profile. Once they know what you're looking for, they'll set you up with a Home Finder Service that will provide you with a list of every single property that meets your personal specifications right when they come in the market. Once you identify properties that you'd like to see, the agent will schedule an appointment to get you inside.
Your real estate professional is also responsible for advising you on how to structure an appropriate offer to purchase your selected property and negotiate on your behalf. More importantly, you will get an opinion that is not emotionally involved with the house. It's easy to go out and "fall in love" with some of those properties, loosing sight of what you REALLY need.
If you're looking for a professional, dedicated, caring and trustworthy real estate agent, please let me know. I've been working with some of the best agents in the area and would love to introduce you to one of them.
On Your Team,
Maria
www.MortgageMinutesAndMore.com
Sacramento, CA -I'm sure you have read and seen from the newspapers and mass media about the current state of the real estate market. Buying a home is both complex AND confusing. In an effort to replace confusion with clarity, real estate professionals have teamed up to sponsor a FREE Home Buyer Class. By the time you're done with this class, you'll have a better and deeper understanding of what it takes to buy a home in today's market and be ready to make the rigth choices.
You will learn...
Secrets of foreclosures and short sales *** How to find the hot deals ***
How much can I afford to buy *** Is my credit good enough *** What loan programs are still available
Do I qualify for zero down payment ***Can the seller pay for my closing costs
Please register at www.HomeBuying101Now.com. Seating is Limited!
Date: Thursday, October 22nd, 2009
Time: 6:30pm - 8:30pm (Registration starts at 6:00pm)
Place: 3550 Watt Ave., Suite 140 Sacramento, CA
Sponsored by Executive Mortgage / CaDRELicense#:00654852
Two major economic plans were released that will impact a lot of home owners. Even though most of those plans are still being worked out, let's see how it could impact you.
Let's start with the Economic Stimulus Plan for 2009 - It's a $787 billion stimulus bill made up of tax cuts and spending programs with the goal of reviving the economy. Believe me or no, initially it was a $1 Trillion plan, and even though it was cut down, it is still the largest anti-recession effort in history since World War II. Wow! One of the major benefits of the plan is the update of the First Time Home Buyer Tax Credit. (check my "News On The Home Buyer Tax Credit" post for more information).
No details yet, but we also expect to get some clarity regarding an additional tier for conforming loans limits. Currently conforming loan limit is at $417,000 with "conforming jumbo"being up to $474,950 for our tri-county area and $626,500 for the bay area. "Conforming Jumbo" loan rates are slightly higher than loans up to $417,000. So we'll have to wait and see if the additional tier will really happen.
Now let's go to the Homeowner Affordability and Stability Plan- President Obama's plan is to stabilize and the housing market and keep millions of home owners in their homes. It includes a Refinancing Initiative and a Stability Initiative.
The Refinancing Initiative is open to home owners who owe up to 5% or more of what the house is worth. In order to qualify for the refinance program, their current loan amount has to be under $417,000 (conforming limit) and guaranteed by Fannie Mae or Freddie Mac. "Credit worthy and responsible" borrowers would be able to refinance their mortgages in to a 30 or 15 year fixed loan based on current rates but it can not include prepayment penalties or balloon payments.
The Stability Initiative is being designed for homeowners who are struggling to pay their mortgages but can't sell their homes because of lack of equity. The goal is to reduce their monthly payment to an amount they can afford. Lenders will be encouraged to lower borrowers' mortgage payment to 31% of their income by lowering their interest rates significantly or extending the term of the loan (i.e. 30 year to 40 year). Lender could also lower the principal balances in order to make it work with the Treasure sharing the cost. Home owners do not have to be behind on their mortgages. Other incentives are also being considered including a $1,000/yr "reward" for home owners who keep their mortgages current all year for the first 5 years.
For you investors...Sorry to tell you but investment properties won't qualify for neither of the plans.
On Your Team,
Maria
www.HomeBuying101Now.com - FOR FREE FIRST TIME HOME BUYER CLASS
If you've been following the news, you know that, in an effort to help the current real estate market come out of the whole, the Fed has started their program of purchasing Mortgage Backed Securities and has mentioned it will continue as needed. We also know that the media will (actually...already is) of course offer their own interpretation and most likely say "Great news...rates will go even lower because the Feds said they will continue their purchasing program...and rates will remain lower in the summer...".
Here's the deal...
The Fed is indeed buying Mortgage Bonds. What they've been purchasing is lots of Fannie Mae 30-yr 5.5% and 5.0% Bonds, which won't have much impact on our current home loan rates (go to http://www.newyorkfed.org/markets/mbs/index.html to check on the Feds Mortgage Bonds purchases). Buying those kinds of bonds is a very smart move. Why? Because 5.5% bonds actually represent outstanding mortgages with rates of 6 - 6.5%, which are the loans being refinanced at today's great interest rates.
Come On... Keep On Reading...
Because rates are still at historic lows, many of those FNMA 5.5% mortgages the Fed is buying will most likely be refinanced, thus giving the Fed a quick recoup of some of their investment. Pretty good move! AND this is likely the reason the Fed said they will continue with the program beyond June, if needed.
Bottom Line...
The Fed buying these higher rates coupons won't necessary help rates to move lower. It doesn't really impact the loans being generated in today's low rates market. Aha!
How Does It Affect You?
Some consumers are in a situation where it really does make sense to refinance right now and save, for example, $200.00 per month. But the media keeps insinuating that lower rates could be right ahead and consumers hold off the $200.00 saving now in the hopes they'll be saving another $25.00 - $35.00 in additional savings if they get a lower rate than the one currently being offered. We all know that rates could turn higher and in this volatile market, window of opportunities could pass by and very quickly.
Think About It...
EVEN IF rates go down and you can time the market perfectly, how much would they have lost by waiting? Just do the math. While they delayed, they lost the savings they could have gained by taking action soon. How long will it take for them to break even? At a $30.00/month pace it could take years to make up for what they lost waiting for months before the rate decrease (well...if that really happens). Besides if they refinance now and rates go down...they can always refinance later.
On Your Team,
Maria Marriott
www.HomeBuying101Now.com FOR OUR UPCOMING FREE FIRST TIME HOME BUYER CLASS.
We’ve all been excited about the possibility of the government increasing the current $7,500 tax credit for first time home buyers to $15,000. Well, things have changed a little...
Congress has just passed the American Recovery and Reinvestment Act of 2009, known as the new Stimulus Bill, with some modifications to the original proposal and the president is expected to sign it into law on President’s Day.
The tax credit in the Stimulus bill has been scaled down to $8,000 from it’s previous levels of $15,000 or 10% of the value of the home for any first time home buyer who purchases homes from January 1, 2009 until the end of November. Unfortunately, only first time buyers will be eligible. It starts fazing out for couples with incomes over $150,000 and single filers with income over $75,000. Buyers won’t have to repay the credit UNLESS selling the property within the first three years. Not Bad, considering that most first time buyers will live in their property for 5 – 7 years before moving.
On Your Team,
Maria
www.MortgageMinutesAndMore.com
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