Rosemary West

7 Ways to Qualify for a Mortgage

A few years ago, home buyers were qualifying for mortgages who normally wouldn't qualify for a mortgage. It was easy to get a mortgage because homes were flying off the market before they were even listed for sale. Lenders saw dollar signs, so they found a way to help buyers get a mortgage while throwing lending principles out of the window.

It's a different story in today's housing market. Qualifying for a mortgage is harder than it was a few years ago, but it's not impossible. As a Member of the Top 5 in Real Estate NetworkR, I advise many clients on how they can qualify for a mortgage in today's market. Here are some helpful tips:

1. Inspect all three of your credit reports. Pull your credit reports from Equifax, Experian and Transunion. Make sure that all of the information is accurate. If you find an account that doesn't belong to you, submit the necessary form to all three credit reporting agencies to dispute the account.

2. Improve your FICO score. Unfortunately, mortgage lenders heavily weight your lending eligibility based on a score that doesn't accurately measure your financial stability. The FICO score only measures your ability to repay a loan. Improve your score by paying down debt, paying all of your credit accounts on time, and keeping open accounts with a zero balance.

3. Save for a bigger down payment. Buying a house with a 10% or more down payment shows you are serious about becoming a homeowner. If you're looking for a Federal Housing Administration loan, you'll need at least a 3% down payment.

4. Increase your household income. That's a tall order in today's job market, but mortgage lenders want you bringing in enough money to realistically pay for the loan. Two-income families qualify easier than one-income families. Pick up a second job, become a two-income family, or start a home-based business.

5. Choose a realistic budget. The rule of thumb is a mortgage payment that is 25% of your monthly household income. Choose a price range that fits this criteria. If you make $4,000 a month, then choose a price range that gives you a mortgage payment of $1,250. The term "house poor" comes from people that spend the majority of their income on a mortgage payment.

6. Stick with one employer. Mortgage lenders like stability, especially in today's market. If you can manage to stay with the same employer for more than two years, that will weigh in your favor.

7. Negotiate a price lower than the appraised value. If you negotiated a purchase price that is lower than the appraised value, you can consider it instant equity in the eyes of the mortgage lender. Follow the advice of your real estate agent on how to make the right offer.

Now is the time to buy, but lenders will no longer hand out loans to just anyone. Don't let this discourage you. Take this time as an opportunity to fine tune your personal finances. For more information on how to qualify for a mortgage, please e-mail me <mailto:rosemarywest5@comcast.net?subject=Top 5 RE Social Networking System Inquiry>. Also, please forward this email to any of your family or friends who might also be in the market for a mortgage.

Sincerely,

Rosemary

Rosemary West

RE/MAX of Joliet

Rosemary's Assistant

rosemarywest5@comcast.net

<http:RosemaryWestTeam.com//>

What You Need to Know About Buying an Urban Property

Whether it's a waterfront condo or a downtown brownstone, multi-family dwellings like condos and lofts are gaining appeal for those considering downsizing, buying a second or vacation home, or desiring a shorter commute to work. As a Member of the Top 5 in Real Estate Network®, I am often asked for my advice on the best way to go about choosing and buying an urban home. Here are some great tips I'd like to share from Frontdoor.com:

1. Consider co-ops.

In many high-priced cities, like New York and Chicago, cooperatives (co-ops) are the easiest way to break into homeownership. About 80% of the housing stock in Manhattan, for example, is cooperatives (co-ops). Co-ops, however, all have different financial standards. It's important to be upfront with your real estate agent so they know what you're qualified to buy.

If you don't have the cash to make a 20 - 25% down payment, some co-ops will allow you to use gift money, while others will not.

Also, some co-ops require that you have a certain amount of cash reserves after the purchase-sometimes equal to the purchase price. Putting all your financial information on the table can help your agent find a co-op that's perfect for you.

2. Explore emerging neighborhoods.

You might be able to get a deal on an urban property in an up-and-coming area, but make sure the area is well on the upswing before you buy. An emerging neighborhood can take several years to redevelop. To make sure it's a good time to buy, investigate the area-see what stores, restaurants or cultural establishments have recently opened or are planning to open in the area. These are always good indicators of neighborhoods on the rise.

3. Investigate a potential building's financial condition.

When you buy a condo, loft or co-op, you're not just buying a property-you're also buying into the building or community. HOAs govern condo communities, collecting dues and maintaining the common areas. A board of directors takes care of these tasks in a cooperative.

Hire an attorney to research the association's financial stability and its rules before you sign on the dotted line. Your attorney should look at the corporation's yearly financial statements to see how much money it has on hand.

If a building doesn't have a large reserve, they can charge a special assessment fee to cover a big repair. These fees are typically announced fairly far in advance (a year or more is normal), so your attorney should also read the minutes of corporation meetings to see if any fees have been proposed.

You can also do some of your own investigating. Don't forget to find out about the surrounding buildings and their construction plans as well. You don't want to buy a home overlooking the water, then find out the week you move in that someone is building something taller that blocks your view.

4. Don't plan to buy a co-op as an investment property.

Multi-family homes can be great investment properties, but cooperatives (co-ops) have very restrictive rules about renting. While condos are typically much more lenient about rentals, be sure to check the property's covenants, conditions and restrictions (CC&Rs) to make sure you're allowed to lease it to a tenant.

For many, today's marketplace represents a great opportunity to buy an urban dwelling that may have been out of reach in years past. If you would like more information on purchasing urban properties, please e-mail me-and please feel free to forward these tips to members of your social network who might also find it beneficial.

Sincerely,

Rosemary

Rosemary West
RE/MAX of Joliet
Rosemary's Assistant
rosemarywest5@comcast.net

As a leader in real estate, I am repeatedly asked specific questions about today's market - especially in today's economy. In an effort to provide more information to my community, I am sending you this Top 5 Real Estate Social Networking Systemsm "e-Article," in which I provide useful real estate information to my real estate networks. If you find the enclosed information beneficial to your family and friends, I encourage you to forward it to your "social network" as well.

What Every Buyer Needs to Look for in a Home

Aspiring home buyers can often get carried away by "love at first sight" when they walk into what they believe might be the home of their dreams. After all, it's easy to amplify all the things you love about the place - the sunset views from the back yard, the proximity to your job, the great wraparound porch...

But as a Member of the Top 5 in Real Estate Network, I strongly advise buyers to hunt for the potential flaws in a home as well, which can often be much harder to recognize. No home is perfect and it's important to have a good understanding of both the pros and cons up front.

The American Society of Home Inspectors (ASHI), recommends that from the moment you drive up to a home, ask yourself:

- Is the home well maintained?

- Are the exterior walls straight or out of line?

- What is the condition of the paint, especially on the south and west sides, where sun exposure is greatest?

- Is the ground sloped away from the home for adequate drainage?

- What about the roof? Are composition shingles curling and lifting?

- Check out window and door frames; is the glazing putty dried and shrunken, allowing water and air to seep in? Is the wood decayed?

Once you get inside the home, ask yourself:

- Are there any signs of leaks, such as water stains?

- Are walls and ceilings straight and level?

- Do doors and windows open easily?

- Turn on the upstairs shower and the bathroom sink faucet, then flush the toilet. Does the flow from the shower lessen noticeably?

- Check the oil/gas/electric heating equipment. How old is it and has it been maintained?

- Look for evidence of termites on basement wood structure. Is there wood or paper debris? Do you see termite tubes or tunnels?

Becoming aware of potential flaws right away will save you frustration and money down the road as you can work with the homeowner on how to best resolve these issues. I would be happy to provide you with more insight into what you should look for when buying a home-just e-mail me <mailto:rosemarywest5@comcast.net?subject=Top 5 RE Social Networking System Inquiry> . If you have friends and family members who are considering buying a home, be sure to forward this email to them so that they, too, can be prepared to ask the right questions.

Sincerely,

Rosemary

Rosemary West

RE/MAX of Joliet

Rosemary's Assistant

rosemarywest5@comcast.net

<http:www.RosemaryWestTeam.com//>

Is a Reverse Mortgage a Good Idea? Top 5 Facts You Need to Know

If you or someone you know is over 62 and a homeowner, you have a unique opportunity to get significant, spendable value from your home, even if you still hold an existing mortgage.

Senior homeowners have spent years, often decades, building up equity in their homes. An increasingly common practice of homeowners over the age of 62 is to obtain a reverse mortgage (also known as a HECM, a home equity conversion mortgage), which gives qualified senior homeowners a proven solution to help fund their retirement needs. In addition, and importantly to most independent seniors, a reverse mortgage allows them to live in their home as long as they wish.

As a Member of the Top 5 in Real Estate Network, people often ask me if reverse mortgages are a good option to consider. For some, it can be, but before moving forward, it's important to fully understand how they work.

Here are five facts you need to know about reverse mortgages:

1. Reverse mortgage candidates must be at least 62 years of age, have significant equity in their property and be looking for a reverse mortgage on their primary residence only.

2. Anyone who intends to apply for a reverse mortgage is required by law to complete a 45-minute counseling session with a HUD (Housing and Urban Development) approved counselor.

3. The sum from a reverse mortgage can be paid to you in a couple of different ways: all at once in a single lump sum of cash; as a regular monthly loan advance; as a credit line that lets you decide how much cash to use and when to use it; or you may have the option to choose a combination of any of these payment plans.

4. The amount of cash you can get from your home's equity is determined by a number of factors including your age, your home's value and location, and current interest rates.

5. Reverse mortgages may have tax consequences, could affect eligibility for assistance under Federal and State programs, and may have an impact on the estate and heirs of the homeowner.

If you would like to look into a reverse mortgage for yourself, a friend or a loved one, please e-mail me and I can assess your particular situation to see if it is indeed a good option. Please also forward this article to anyone else you know who may benefit from a reverse mortgage.

Copyright© 2009 RISMedia's Top 5 in Real Estate Network, All Rights Reserved. This material may not be republished without permission from RISMedia.

Sincerely,

Rosemary

Rosemary West
RE/MAX of Joliet
Rosemary's Assistant
rosemarywest5@comcast.net

Top 5 Tips for Securing a Loan Modification

Like many Americans, you or someone you know may be behind on your mortgage payments due to a number of possible financial troubles. You're not alone.

As a member of the Top 5 in Real Estate Network, I am often asked if lenders will work with homeowners to modify their mortgage loans. The answer is often yes, but it will take some effort. Here are five tips for working with your lender to expedite a loan modification from top producing broker and real estate consumer advocate Ralph Roberts of Ralph Roberts Realty in Michigan.

1. Come Clean
It can be tempting to bend the truth when you are trying to convince a lender to approve a loan modification. Some homeowners are embarrassed; others try to fudge the numbers. However, only by laying all your cards on the table and disclosing the truth can you begin to attend to the root cause of your financial hardship and then develop and implement solutions that put you back on the path to long-term financial health.

2. Understand Your Lender's Point of View
Regardless of how you ended up in the situation you're in, blaming the lender or the mortgage broker or loan officer who placed you in your current mortgage does little good, unless you can prove your point in court. Usually, you have a better chance of resolving the problem by understanding your lender's point of view, even if you don't agree with it.

Know that for lenders, it all boils down to money. If you can show them that modifying your loan cost them less than a foreclosure would, and they believe you will honor the terms of the loan modification, they are likely to approve it. If not, then they are likely to reject it. Lenders need to protect their own interests and carefully screen out ineligible applicants, which can often make the process much more difficult and frustrating for homeowners who genuinely suffer financial hardship and need a loan modification.

3. Keep a Cool Head
Understandably, homeowners often become frustrated and angry when seeking assistance from their lender. Unfortunately, anger can result in the following:

- "Accidental" disconnects: The customer service rep you're speaking with may put you on hold permanently or hang up "accidentally."
- Lost files: Your file may get "lost" or "misplaced."
- Rejection: Your lender may decide that you are unreasonable and that foreclosing would be less costly overall.
- A bad offer: Your lender may offer a workout solution that is worse than what you would get had you been nice about it.

If you doubt your own ability to remain calm, cool, and collected during the entire process, consider hiring a professional to represent you.

4. Give Them What They Need
Prior to applying for a loan modification, call your lender or visit its website to obtain an application packet or a list of items you need to submit with your application. Find out exactly which forms you need to fill out and which documents your lender needs to process your application. Label everything clearly and legibly with your name and loan number and provide a checklist of all items you're submitting in your application packet. Arrange the items in the order listed by your lender, so whoever is processing your application does not have to search for items. Include a cover page that lists your name and loan number in large print as well as an items-included list.

5. Ask For What You Want
Before discussing the terms of the loan modification with your lender, you should have a fairly clear idea of what you want and need. Answer the following questions for yourself. This will help you field questions from your lender:

- How much do you owe in late or missed payments?
- Can you catch up on the missed payments?
- Do you need additional time to catch up on missed payments?
- How much can you realistically afford to pay each month?
- Do you really want to keep your home or would you prefer to sell if you could walk away not owing anything?

Remember, an affordable loan modification can enable you to catch up on any missed payments, lower your monthly mortgage payment, and keep your house. To find out if you might be eligible for a loan modification, please e-mail me. Please also forward this important information on to any family members and friends who may find it useful.

Sincerely,

Rosemary

Rosemary West
RE/MAX of Joliet
Rosemary's Assistant
rosemarywest5@comcast.net