Noel Crider

Local Auburn, CA Attorney and other professionals will answer your questions FOR FREE

Many homeowners today are struggling to make their mortgage payments. They are losing sleep night after night, wondering what to do: Loan Modification? Short Sale? Foreclosure? Bankruptcy? Because they are uninformed about their options, they may not do anything. Unfortunately, time marches on, and the situation only gets worse. Come join us on Tuesday, December 8th, from 6:00 - 7:30 to learn about real options options. This is a great opportunity to ask questions of professionals who are out there helping homeowners every day.

Click here for more information and to register!

Today's the day! Your offer has been accepted! Now you wonder...what happens next? It's time for the team to get to work. Your lender, title company and realtor is the Dream Team that works to get the job done!

Here are the steps to getting the keys to your new home.

1. Buyer's remorse. Expect it. Everyone gets it. Then get over it! You've wanted to get to this moment through months of looking, writing offers, getting beat out, writing more offers, and on and on. You're where you want to be! Let's get the escrow closed!
2. Contract and Earnest Money to Escrow. Your agent will arrange for the fully executed contract (signed by both buyer and seller) to be delivered to the title company handling the escrow. Your deposit check is deposited with the title company and cashed at this time. Keep in mind that if the contract is cancelled, the escrow officer must receive mutual agreement from both buyer and seller before earnest money can be returned. Your agent is responsible for making sure you stay within the bounds of the contract so that your money is protected.
3. Loan Approval. As soon as possible after agreement, meet with your lender to proceed with loan approval. Loan approval has the longest lead time in the escrow process, so it is important that you get on this as soon as possible to avoid any delays. Your lender will also schedule an appraisal to ensure that the purchase price is supported which is necessary for loan approval.
4. Inspections. Your agent will schedule any desired inspections that you are responsible to pay for. You are free to choose the inspectors, or your agent may have referrals for you. He or she will receive reports of any inspections coordinated and paid for by seller. You are welcome to be present at the inspections, and most inspectors welcome any questions you might have.
5. Disclosures. The seller must deliver to your agent required disclosures about the property such as the Transfer Disclosure Statement (TDS) and Seller Property Questionnaire (SPQ), usually within 7 days of agreement. Through these disclosures, the seller must reveal any material facts that might influence your decision to purchase the property.
6. Negotiate repairs. Should any of the inspections reveal items needing repair, you may ask the seller to address them through a "Request for Repair" form provided by your agent.
7. Contingency Removal. Once the loan is approved, the appraisal comes in at value, and all inspections and disclosures have been reviewed, it is time to remove all contingencies and move to close the escrow. This must be done in writing by your agent and usually occurs at Day 17. At this point your earnest money deposit is now committed to the contract, and the seller has a right to pursue this money should you cancel the contract past this point.
8. Moving to Close. The loan documents are prepared and sent to the title company, and you will be contacted by the title company to set an appointment to sign them. You will also need to bring necessary closing funds in the form of a cashier's check in the amount given to you by the escrow officer The seller will also set a separate appointment to sign their necessary closing documents.
9. Final Walkthrough. Within 3 days before the close of escrow, you and your agent will visit the property one last time to make sure it is in the same condition as when you made the decision to purchase it.
10. Utilities. Make sure to call the appropriate utility companies to schedule your utilities to be transfered over. Your agent will be able to supply you with a list of local companies.
11. Closing. A few days after signing, depending upon the lender and title company and their schedules, your loan will be funded and the deed will be recorded at the County Recorders Office.
12. It's all yours! Your realtor will meet you to hand over the keys to your new home!

Remember that you don't have to do all this alone! Your agent will help you through every step of the way. He or she will keep you on track with the timelines of the contract, and protect your interests throughout the process. Nothing ever goes completely as planned, so your agent and other professionals on the team will help navigate any pitfalls and get the transaction back on track.

Find more homebuying information here!

The tax benefits to homeownership are almost too good to be true!

1. When you purchase a home, in most cases, loan discount points and origination fees are tax deductible to the buyer, regardless of who pays them.
2. You can deduct mortgage interest charged on a loan used to acquire or improve your principal residence in the year that it is paid. In the early years of a loan, most of your monthly payment is interest, so this can really add up.
3. Finally, when you sell the home, as an individual you can earn up to $250,000 and pay no taxes on it, and as a couple, it's $500,000. Learn more.

For more information about buying a home, please contact me.

"If you wait until you see the robin, spring is over." Warren Buffet

You may be sitting on the sidelines waiting for the right time to buy a home. Here are some reasons you shouldn't wait.

1. Interest Rates. Today's record low rates are under 5% for most loan types, with jumbo loans and those for investment properties slightly higher. We haven't seen rates this low since Freddie Mac started tracking them in 1971. The federal government has been injecting $1.25 trillion into mortgage-backed securities to push down mortgage rates, but that money is set to run out next spring, and rates are expected to go up.
2. Home Prices. With median home prices bouncing around all-time lows, there is no reason to wait. Think about this: "even a 10% decrease in home prices is immediately nullified by a mere 1 percent increase in interest rates on a 30-year loan," says Gary Keller.
3. Tax Credits. The government has extended the $8,000 first-time home buyer credit through April 30, 2010, and has added a $6,500 credit for repeat buyers. Read about it here.
4. Tax Benefits. When you purchase a home, in most cases, loan discount points and origination fees are tax deductible to the buyer, regardless of who pays them. In addition, you can deduct mortgage interest charged on a loan used to acquire or improve your principal residence in the year that it is paid. In the early years of a loan, most of your monthly payment is interest, so this can really add up. Finally, when you sell the home, as an individual you can earn up to $250,000 and pay no taxes on it, and as a couple, it's $500,000. Learn more.
5. Timing the Market. It's ironic that when prices were escalating in the seller's market a few years ago, buyers were clammoring to buy! No one can time the market, but statistics show that the worst is over, and we are bouncing around the bottom. The time is now to purchase a great value.

For more information about buying a home in today's market, contact me.

By Scott Cooper

Scott is a regular contributor to my blog.

Credit repair does not have to be complex and can be boiled down two basic ideas: First, positive accounts will counteract the negative accounts. Second, time heals all credit.

1. If you have positive accounts, keep them. Do not close any accounts that have good payment histories as they will help balance the negative. In addition, older, unused accounts with a zero balance may help improve your score.
2. If some of your positive accounts are credit cards, keep the balances below 50% by paying them down, or transfer part of the balance to another card so the balance does not exceed 50% of the limit.
3. If you do not have at least 3 accounts that report to the credit reporting agencies, open up more accounts. With negative credit, opening new accounts may be difficult, so open a "secured" credit card. With a "secured" credit card you will need to send the credit card company a specific amount of money, and then you will receive a credit card in that amount. The new accounts will help you establish a positive credit history.
4. WAIT. While this may not seem like a plan packed with insider secrets, the fact of the matter is...time heals credit. Remember, this is a marathon not a sprint. If you maintain at least 3 accounts with perfect payments, your credit will progressively improve.

So, now you are 2 to 3 years in the future and what is the payoff for sticking to the plan? Your credit will be good enough to buy a home again. Don't let the setback of a short sale or foreclosure make you feel hopeless. You have options, and with the proper course of action, you may become a homeowner again much sooner than you thought possible.

If you need further information, or would like assistance with credit repair, contact me:

Scott Cooper