LOUIS VELA

The Critical Questions You Must Ask Any Realtor Before You List or consider hiring a Realtor. Eight questions to ask during an interview process before you hire a real estate agent to list your home.

1. What is your company’s track record and reputation in the market place? It may appear like everywhere you look, Real Estate brokers are boasting about being #1 for this or that or quoting the number of houses they’ve sold. You may be amazed to know that some agents sell fewer than 10 houses a year.

2. What are your marketing plans for my house? - Simply putting a sign on your lawn and featuring open houses will not sell your house. How much money does this agent spend in advertising the homes he or she lists versus other brokers you are interviewing? In what media does this broker advertise?” Look for an agent with a unique marketing plan.

3. Could you send me some information about yourself? - You can often get a good idea of which brokers are the most professional by looking at their marketing materials. If the marketing pieces aren’t professional and they can’t market themselves effectively, how are they going to market your house? Track how long every agent takes to respond to your request and how quickly they follow up. If they don’t reply expeditiously to your listing requests, suppose how they’ll handle potential house buyers

4. What listing price do you recommend and what is it based on? - Pricing is the most critical step to selling your house. Take great care in choosing an agent with the knowledge to price your home effectively. Keep in mind that the selling price should draw prospective buyers to your house, get you top dollar in the current market and reflect the condition of your house. Be realistic and avoid: “Yes agents” who will say ‘yes’ to any request or price. Your house could languish on the market as a result.


5. What is your average duration of time from listed to sold? - Don’t automatically assume the shorter time on the market, the better. That could reflect undervaluing houses and selling them rapidly at “low ball” prices. Look at the original asking price compared to the actual selling price. A Real Estate Agent who sells close to the asking price is effective at setting the right price and assisting clients get it.

6. What Kind of Guarantee Do You Offer? If you sign a listing or purchasing agreement with the broker and later find that you are unhappy with the arrangement, will the agent let you call off the agreement? Will the broker stand behind thier service to you? What is thier company's policy about cancelled agreements?

7. How long is the listing agreement and what are the fees? - Have your broker go over all the particulars. Make sure the beginning and ending dates are on the agreement, a good standard for duration is six months. Know precisely what fees you will be giving, and remember less is not always better. If the broker stands to make very little commission, you can bet it will be reflected in the amount of time and effort that is spent marketing your home. If the agent reduces their commission to get your listing, it may mean they intend to spend very little money advertising your property.

8. Can you refer me to a Reputable Mortgage Broker, Lender or Real Estate Attorney? This question brings out how involved the real estate agent is, and how well associated they are professionally. In the selling process you will need the services of a respected, competent mortgage broker, lender, title company etc. Your real estate broker should be able to give you a few names on the spot if they are committed and diligent with their practice as a professional Realtor.

My hope with this write up has been to educate you and help you avert the pitfalls many home sellers go through. I hope you found the ideas worthwhile and if there is ever any way I can be of service to you or anyone you care about, please visit my website http://www.pmfmtg.com



Respectfully
Louis Vela

 For many people, the ability to refinance your home may shrink daily expenses and actually better credit all at once. Contrary to what you might think, refinancing is still a viable option for many householders. Discover if it's a sound idea to refinance your home with this quick quiz:

   1. Are the current mortgage interest rates at least 1 point less than your existing mortgage interest? If so, refinancing your home mortgage might make sense. If interest rates are lower now by 2 points or more than when you purchased your home, you should emphatically look into refinancing.

   2. Do you presently have an variable rate mortgage, negative amortization or interest only loan that is due to readjust or which isn't building equity? If so, today's historically low mortgage interest rates make it a great time to refinance a home loan and lock in low rates on a standard mortgage refinance loan with a fixed interest rate.

   3. Do you have at least 20 percent or more equity in your home? If so, you might profit from refinancing by reducing or doing away with the Private Mortgage Insurance (PMI) that you are paying every month. PMI is a type of insurance that is necessary in many loans where the purchaser didn't make a down payment of 20% or more. In exchange for less money down, PMI provides supplemental insurance to lenders in the event of a default. But if you now owe 80% or less on your mortgage, you may be able to drop the PMI and that can trim down monthly payments by $50 to $200 or more.

   4. Is your debt to income proportion approaching the maximum? If you refinance your place, you may in reality improve your credit score by freeing up additional income and lowering the minimum monthly payment amounts of your basic bills. By keeping a good credit score and low debt to income ratio, you will often qualify for lower interest rates on everything from credit cards to insurance, making this a strong crucial move toward lowering all of your bills at one time.

   5. Do you require to pay for a large one-time out of pocket expense like major medical bills or college tuition fee? If so, it is oftentimes more affordable to take out money when you refinance your place instead than securing additional loans. Just keep in mind, you could be refinancing for up to 30 years so the total cost may be substantially more in the long run. Take time to calculate the cost versus savings for yourself before making a final decision.

      If you answered "yes" to several of the above questions then you might benefit from speaking to a mortgage broker or lender to refinance your home. It could easily save hundreds of dollars per month. Contact Louis Vela if you are considering refinancing to go over your mortgage financing options. Louis Vela is a  Local Mortgage Expert in the Chicago land Area. Six Insider Secrets Banks Don't want you to learn

Owning vs. Renting – The Big Debate

There comes a time in everyone’s life where they have to make the ultimate decision and decide whether to buy and own their own home or continue to rent. It’s a huge decision as both have notable benefits and disadvantages and it is not one to be taken lightly. So lets have a look at these advantages and disadvantages to see which option is really the best option for you.

Owning your own home is the traditional dream that practically everyone has, especially when it comes to starting a family. It gives you a feeling that you have accomplished one of your goals and that you are both financially and emotionally secure as well as giving you a great sense of community. But is it the right decision for you? Lets have a quick look at the advantages and disadvantage of buying and owning your own home.

Advantages:

You set your own rules

You have a sense security

You have made a great investment

You have a sense of freedom

You get various sorts of tax rebates and deductions

Your repayment is usually the same or sometimes even lower than it would cost to rent

Your repayments aren’t wasted like rent – they are going into owning your own home

You have the freedom to do what you like in terms of renovating and decorating your home and gardens

You build equity in your home over time

You have a better credit rating if you ever needed a loan again

Disadvantages:

You are liable for any accidents and injuries on your property

You are liable for any damage that is caused to you neighbors property if it stemmed from yours. For example if you have a tree that has a branch hanging over the neighbor’s yard and it breaks off, it can cause damage to their house which you are responsible for.

You are responsible for any maintenance in, on, or around your home

You haven’t the ease to just pack up and move when ever you want

You have a huge loan that needs paying off even if you are having financial hardships

You are responsible for all the insurance on your home and land

Varying equity rates

You will need to pay out a large down payment up front

You have property taxes to pay

Renting is something most of us start out doing and many people are comfortable doing it all their lives. There are many advantages to renting a home but there are also a few disadvantages. Let’s have a look at them.

Advantages:

You can up and leave as soon as your lease is up

If you hit financial hardship you can again move

You have little or no responsibility for maintenance

Sometimes utilities are included in the rent

Sometimes you have free use of amenities such as laundry, pool and other sorts of actualities

Disadvantages:

You have little or no freedom in what you can do with the place

You may face increasing rent

You have limited space for your money

You are not eligible to get any tax deductions

You are at risk of being evicted

The house could be sold and you can be asked to leave

You could have restrictions on certain things like noise and pets

You could have a restriction on how many people can live with you

Your rent isn’t going into a productive investment for you

As you can see clearly there are many advantages and disadvantages to owning your own home and renting. Some have advantages and disadvantages the other doesn’t have, but both can be a comfortable way to live. When it really comes down to it you have to choose the one that suits you’re financial, emotional and lifestyle needs at this time. You have to take your future into account as well, will you want to be tied down and take responsibility for a huge investment or will you prefer the freeness of being able to move whenever you please? It can be quite a hard decision to make and it is one that needs a lot of time and thought before you proceed to take any further steps.

For more information or for a free pre-approval, please call Louis at 708-243-1915. Email LVELA@PMFMTG.COM

More people who are renters now qualify to become a homeowner. Don't let fear or ignorance stand in your way. Our job is to educate and advise you. Call us today to take one step closer toward realizing your dream of one day becoming a homeowner.

Sincerely,

Louis Vela

1. Getting Your Mortgage Loan from the Internet May Cost You.

It could be a costly mistake if you get a loan online from a mortgagre company in different parts of the country. There are different rules and guidelines for different states, cities, and even counties. It can be risky to obtain a mortgage loan from a company across the country if they are not familiar with the rules that govern the area where the property is located.

Typically local companies will be more concerned about their reputation and doing a good job for the customer. I operate from referrals so it is very important that I meet my customer's expectations. Getting a loan online can also take longer because they will not have service companies (title companies, appraisers and others) to do the job in a timely manner.

Mortgage loans are complex and may not make sense to purchase online. This is especially true if the borrower is looking for maximum service and care.

Another simple fact, most Internet sites are not run by mortgage brokers or lenders. They are run by “Lead Companies”

As an example, there is one well known Internet lead company. I bet you know who they are. You've seen the commercial a dozen loan officers all dressed alike lined up the stairs, all waiting to court the arrogant young couple for their loan. Well, this company is not a mortgage lender or broker, they are information brokers. They are in the business of selling information to “up to four lenders”

You see what happens is that mortgage companies around the country pay a fee to the Internet company for the right to see your information. The mortgage company reviews your information, and then decides if they want your business. If they do the mortgage company will respond to your request and send you a quote.

Keep in mind three things:

1. 1. Your personal financial information, credit information and Social Security number are floating around on the Internet, being sent to several companies for anyone in their offices to see.
   2. Whatever rate quote you get is only going to be as good as the information you input on the computer screen. The lenders “approval” is subject to review of all of your information.
   3. You receive no personal attention. No warm body to help you, just a cold click of a mouse.

Dealing with a reputable broker or lender right here in town, gives you local accountability, and frankly, there is very little or nothing a company in Denver, Los Angeles, and Las Vegas can do that a local company can't.

© 2006 – 2009 Louis Vela All rights reserved. Do not reprint or redistribute.

Email Louis Vela at LVELA@PMFMTG.COM or call Louis Vela at (708) 243 - 1915

At least two dozen times a week we had people call me and ask,"What's your rate on a 30 year fixed rate?" Most times when I try and get additional information from the potential borrower. Unfortunately, for both the caller, and me they don't want to tell me anything. "I already know what I want, just give me a rate," is the usual response.

Now, I'm not encouraging you not to shop around for the best rate.

But, asking for a rate without giving more information is a bad idea. Why? Because frankly, anybody can give you any rates quote they want over the phone, there is no way you can hold them to that rate. You see, there are two kinds of mortgage companies out there, those that are only interested in you as a loan customer and those that look at you as a client for life.

Those companies that want a fast buck no they can quote you anything they want just get you in the door, then they can use whatever excuse to "convert" you to a different loan with a different rate.

Those companies that want you as a client for life, will take the time to ask for is a much information as possible, upfront, so they can not only give you the best rate possible, but they can also quote you the best loan program for your situation.

Additionally, far too many people think they already know what loan program is best for them.

You may think you're ready and know what you want, but unless you know all of the options in the marketplace you may miss an opportunity for a better loan program or situation that you didn't know existed.

Let me ask you, have you ever gone into a store to buy a specific product, but came out with something entirely different? If you did it was probably because you didn't know the new product even existed or a knowledgeable person in the store gave you new information that helped you make a better informed decision.

The job of a competent loan officer is to use their years of expertise to help you select the best option for your situation.

Please, don't assume you know what's best for you.

Now, I'm not saying that you shouldn't make the final decision. After all, it is your money, your home and your financial future. However, there is no harm at all and letting a competent, well trained mortgage professional give you several options, then you select which you believe is best for you.

2a. Finding the lowest mortgage interest rate is not always the best deal.

(This is so closely related to number two don't count it as a separate issue.)

Some loans have very attractive interest rates (also known as teaser rates) but you may be hit with higher up front charges. Points and or origination fees are the most common ways to lower the rates and charge upfront cost. When searching for a mortgage, ask the lender if they are charging points or origination fees. Points and origination fees are calculated as a percentage of the loan amount. See example below.

$220,000 Mortgage

1 Point = 1% of the loan amount $2,200 paid at closing

2 Points = 2% of the loan amount $4,400 paid at closing

Beware of most adjustable rate mortgages (ARM'S) and Balloon Mortgages.

Arm rates adjust differently depending on the loan program. The ARM rates may adjust as often as every six months but in most cases they adjust after 1,2,3, and 5 years. With interest rates at the historic lows, interest rates on ARMS are far more likely to go up when they adjust. The Balloon Mortgage requires the borrower to pay the loan off when it matures.

There are many lending tactics to sell the borrower on a low rate and then charge outrageous fees and costs. Don't fall into the "bait and switch" lending ploy.

That being said, there are several excellent adjustable rate loans that are perfect for the right situation. Keep in mind, I don't try to force everyone into the same mold or in this case the same loan program. With over 1,000 loan programs available, I can almost always custom tailor a loan to fit most clients' wants and needs.

Visit http://www.pmfmtg.com/ for a copy of a Free Report: Six Insider Secrets Mortgage Lenders don't want you to know. There is a vualt of information I have available for consumers by vistiing my website.

Respectfully,

Louis Vela

© 2005 - 2009 Louis Vela All rights reserved. Do not reprint or redistribute.

Email Louis Vela at LVELA@PMFMTG.COM or call Louis at (708) 243 - 1915