Pennsylvania Real Estate News, Views and Rants : va benefits

Are YOU Ready to Buy in Today's Market??

John Rainville — Fri, 05 Oct 2012 20:55:00 GMT

By using a mortgage-qualifying calculator (mortgage-info.com), find out how much house you can afford. You typically will need a down payment of at least 20 percent, plus another 6 percent for closing costs, lawyers’ fees, etc.

When you put less than 20% down, you have to pay for some kind of insurance to protect the lender from the higher risk that you may default. With FHA loans, mortgage insurance is built into the payment. With conventional mortgages, you will have to buy private mortgage insurance, but some private mortgage insurers are not willing to do business.

With credit issues and foreclosures running rampant, you should maintain a credit score of 760 or more. It is the minimum you need for a mortgage with the best interest rate. For free credit scores, try quizzle.com or creditkarma.com; see your credit report at annualcreditreport.com.

All financial experts agree that the important message for all home-buyers is that “you can’t afford not to save.” If you have nine months of expenses in the bank to protect yourself in case of job loss or disability, then purchasing a home will be worry-free for you and your family.

How long will you be in your home? If you will not have to move in the next five to seven years for work or any other reason, then you are ready to buy. Make sure you think through career change possibilities, whether you will be moving when you are done with school, or whether additions to your household will necessitate an upgrade soon.

If you move too soon, the costs you pay up front could result in a not-worth-it situation. If you are prepared to maintain the house in terms of time, labor, and expense and are able to set aside 1 to 2 percent of its value per year for upkeep, as well as emergency repairs or upgrades, then you are ready for home ownership.

Knowing the loan approval process can take weeks–if not months–to be completed will certainly test your desire to own a home. If you are on a tight deadline or looking to avoid any hang-ups, have all the necessary documents ready and completed. Having all of the paperwork in advance will ensure there are no delays which can be costly.

You should not assume a mortgage broker or lender will find or create the ideal loan for their financial situation. Mortgage brokers and loan officers will typically look at the usual programs available. You need to know what your goals are and all of your financing options with your lender or broker.

Are you prepared for additional costs? Understand all the fees that are included, what will be due at closing, or before closing, and the payment and amortization schedule. Sometimes there are fees that may come as a surprise to you. Lenders are required to provide borrowers with a “Good Faith Estimate” which lists the anticipated costs for the loan.

However, sometimes fees and other costs become an issue and inflate the total loan cost. You should compare costs with several lenders because the processing charge for collecting and packaging the loan information can cost between $500 and $1,000, while the underwriting fee can hit $800 to $1,500. Remember, though, the origination fees, application fees and the underwriting fees can be negotiated.

Do you have a stable budget? Is your income stable enough to make regular mortgage payments? Make sure that you can keep up with your payments, and that the reliable portion income can handle your mortgage. Do a mock budget with home ownership that includes estimated taxes, HOA fees, maintenance costs, utilities, repairs and other expenses on top of your monthly principal and interest payment.

Deciding to Buy or Rent a Home

John Rainville — Tue, 27 Mar 2012 21:16:00 GMT

There are many advantages to purchasing a home, especially in light of the historic low rates that have become available.

Regardless of the fact that these rates dropped considerably as a result of the recent housing and financial crash, more and more people are driven to the path of home ownership versus renting.

There are a number of pros and cons associated with the recent industry crash. Scores of Americans are finally able to purchase a part of the American dream, as desired by so many. And the best part of all? Your money isn’t going straight into the can! This is just one of several benefits of purchasing a home instead of renting.

When you are considering your next move, it would be wise to consider your options carefully. One thing you should consider is the length of time you plan to live in your new home. If you are relocating for a few years for a job it would be wise to consider both purchasing a home as well as other options such as renting.

A number of studies indicate benefits of home ownership for not only the owners, but also for their family, neighbors, and community at large. Below is a brief list of other benefits to owning a home.

Locked In Cost – When you are dealing with a lease, you often have to worry about future rate changes. However when you buy a home with a fixed rate mortgage, your payments will not change, at least for the duration of your loan period. There is a chance you can see your taxes go up, but many homeowners don’t fret about their tax dollars going toward education or other core government tax-based essentials.
Tax Benefits – Another benefit homeowners have over renters is the ability to cash in on savings on their taxes. Homeowners are usually eligible for a significant tax reduction because they can deduct their mortgage payments and any paid property tax when they file their yearly income taxes. Though some may think they may not see a good return on their taxes from their mortgage, you’d be surprised by the savings that can be accrued just by interest rates and property taxes alone.
Debt Consolidation – If necessary, you have the ability to refinance your home’s mortgage in order to merge, or consolidate, other outstanding debt. This is also something you can deduct from you taxes and an opportunity that simply doesn’t exist for renters.
Build Equity – When you are paying rent every month, you are simply handing your money over for the roof over your head, and nothing else in return. However, when you are paying for a mortgage, your payments are going toward your principal [and any added interest]. Every year that you pay toward your home, you are paying toward the principal and are eligible to get the money back when you put your house on the market, later on. It’s basically a long term investment in the form of real property.
Peace of Mind – When you purchase a home, you can make your own decisions on everything from window trim and bathroom paint, to future plans for renovating that upstairs attic. You will be able to call all the shots without being worried that your land lord will be upset. You will have peace of mind knowing that you don’t have to depend on somebody else.

Buying a home is one of the most important decisions someone will make in their life. However, it is important to understand that owning a home comes with added responsibilities. For example, if you are used to renting a home, you probably never think about the landscaping work. You may not realize that your rental fees are helping pay a contractor to mow your lawn.

It is important that you evaluate all the facets of real estate before jumping in head first and buying property. Buying a home is a life-long decision. If you think you are prepared to buy a home or are simply sick of throwing away your hard earned money on rent, contact a real estate professional to help answer any questions you may have and to get you on the right track of home ownership.

Buying Homes in a Falling Market

John Rainville — Tue, 06 Mar 2012 14:27:00 GMT

Real estate markets across the United States have been south bound for over 3 years now. Fewer markets have experienced an occasional spurt in prices without sustainable momentum.

So far the beginning of 2012 appears too early to predict a reversal of the current trend and the numbers that are put out by several research agencies point out that a large number of homes remain unsold across the nation.

With mortgage lenders likely to add a significantly larger number of homes to the foreclosure list, the best that can be expected is some stability at the current levels. Serious buyers, though they are fewer, are also facing difficulties in obtaining fresh mortgage loans because the lenders have made substantial changes to their lending plans.

A 20% down payment has now become the rule with many lenders. Your credit history over a long period of time and not just the immediate credit scores also add to the list of hurdles to be crossed before you can get a mortgage loan. Put, together, if you have decided to buy a home, let us examine how you can get the best out of the current situation.

Though the chips are down across the nation and most prominent markets around the globe, real estate is driven more by local factors than the global or national indicators. Therefore, if you are buying into a neighborhood where prices have shown a steady rise in the last couple of years (after hitting the bottom in early 2009), your investment has better chances of appreciation in the immediate as well as long term.

In markets which have an inherent strength, the cause of the dip is only a reflection of the sentiments across the broader national spectrum. In these markets, you will be guided by the general economic conditions prevailing in the neighborhood, employment statistics, and the overall growth prospects.

In early 2009 most markets reacted sharply to the economic down turn taking real estate prices down. However, in some markets with potential buoyancy, the reaction was short lived and priced started moving up in a short space of time. One way you can amplify this picture is by looking at the price graph between 2009 and the current times. In markets where the prices have moved up continuously, you have minimal concerns because of the inherent value in these markets.

Buying homes in a depressed market is sharply different from buying homes in a strong market. The first step in such markets would be to examine the price movement to gauge whether the market has bottomed out or the trends holds further potential to go down. When the price graph shows up and down waves, there is an element of inherent strength in the market.

These markets have a strong potential to consolidate and move up when the national economy offer even small consolations and exhibits signs of improvement. Your task becomes tougher when your chosen location falls in a market that is perpetually moving south. Buying homes in these markets call for in-depth analysis and understanding of multiple factors that influence the price movements.

Your best bet to buy homes in a depressed market is to identify a reliable agent conversant with the neighborhood in which you propose to buy your home. With long years of experience in a specific neighborhood your agent is in a better position to guide you through an informed investment decision and help you get the best of homes, at a price point that is advantageous to you.

How Do I Find the Bargain Priced Homes?

John Rainville — Tue, 28 Feb 2012 14:55:00 GMT

Every buyer wants to find the best buy out there; but where do you start looking for homes that bargain priced?

First start working with a Buyer’s Agent. Buyer’s Agents usually are the first to know when there’s a bargain home out there.

They also can pull up listings that will have homes that are considered “Fixer-Uppers” which are generally sold for well less than their value if they should be free of any updates and fixes needed. Buyer’s Agents have a direct line to the real estate industry and open lines of communication with other agents who may have homes that they know must sell and can sell at a real bargain price. The only problem with all of this is that this is how almost everyone operates when it comes to finding the bargain homes. There is another way.

Ask your agent if they can access the inside investor market. Most Realtors don’t even know this market exists. The inside investor market is where the homes hit that are 40-50% off their actual value and hit this market before they’re even listed on the MLS market. If they make it that far, which is rare, then they’re usually not as hugely discounted as they could have been or they’re not as wonderful of a deal as you really want; otherwise they would have been scooped off the inside investor market. You may find that you can’t find an agent that is involved in the inside investor market in your area; should this be the case then you may have to go with a typical Buyer’s Agent who utilizes MLS listings to find their “bargain homes” but that’s not exactly a horrible thing. You have to work with what you have.

Short Sales are going to offer a home for less than what the owner owes on the home. This may or may not put the home in a highly discounted position because it’s based upon what’s owed on the home by the current home owner. With the market changing as much as it has lately many people own much more than their home will ever be worth so make sure your Buyer’s Agent pulls the CMA which gives you a marketing analysis on other homes in the area so you can compare the cost of the Short Sale home to the values of other homes in the area.

Foreclosures are generally offered at discounts but once again it’s not always the case. You need to be sure to utilize the skills of the Buyer’s Agent so you know what the houses in the area are going for and if this foreclosure is really worth it. Sometimes houses that are foreclosed on will go up for Sheriff Sale and be auctioned instead of listed. In these cases you need to be sure that the home hasn’t been vandalized and abused while it’s sat empty.

Auctions can happen to homes for various reasons. One of the most frequent reasons for a home going up for auction is unpaid taxes. These often end up being auctioned without the ability to go into the home and doing nothing more than a drive-by; basically sight unseen.

Another reason for a home to be put up for auction is to settle an estate quickly as opposed to waiting for the house to be put on the market. In either case you do have a chance to grab a house at a bargain price. The problem with auctions is that you don’t know who you’re going to go up against and you have to know the CMA for the area the auction is in so you know how high to bid. Another thing to keep in mind with auctions is that you will be bidding up against people from every walk of life; contractors, professional house flippers, first time home buyers looking for an cheap way to buy a house, and more.

Bank Owned sales often result in the bank taking almost any realistic offer on the home because simply put, they don’t want to own a home, they want the money. Again, your Buyer’s Agent can help you negotiate a good deal here.

Fixer-Uppers are a great way to purchase a home for a fraction of their value but you have to take into account what the value of the home in that area is worth and know how much it’s going to take to flip the house so you can resell it as quickly as possible. Obviously if you’re not the handy-man type this is probably not the kind of home you want to buy because when you add in the cost of labor to the costs of fixing up a house, that’s when the money starts going out. Be prepared to make a list of items that need to be done before the house is in the condition it needs to be in either to sell it for a profit or move in to. This is where it’s going to pay to have a crew whom you can trust to give you quick and accurate estimates on the work that needs to be done. Start with the obvious and architectural problems that if they aren’t addressed will have the capability to cause more harm to the house. For example a leaking roof should take priority over indoor plumbing which can be shut off until it’s time to work on it.

When you’re buying bargain homes there is a bigger sense of urgency to move on the home before someone else finds it. You are going to have to have complete trust in your Buyer’s Agent and listen to them as to whether or not this house is worthy of jumping on; otherwise someone else with the knowledge to know the difference between a bargain and a bad house that’s just priced right for its condition is going to beat you to the punch. So there is a definite urgency needed when you’re out looking for that super bargain deal when buying a home.

When is the Right Time to Buy a Home?

John Rainville — Mon, 27 Feb 2012 21:32:00 GMT

If you’ve been looking to buy a home for some time now, chances are you know that 2012 is sure to be the year of the buyer’s market.

Many experts expect the economy to rebound and have a respective effect on the housing industry.

That’s why so many real estate agents say now is a great time to buy a home, if you have the money or are looking to invest at a great price, while the market is down.

While it’s obviously important to keep your finances and budget in focus and know what is affordable and attainable for you in the moment while considering your options, it’s also important to consider what you truly want, depending on who else is involved.

What can you compromise on? Where you do want to live – the city or the suburbs? Is there any possibility of you moving again in the future, or owning more than one home? Do you have children, or are there potential children coming in the future? What kind of amenities do you want to be located near?

It’s essential to determine what’s important to you, and anyone who may be affected by your decision, so that you can come to a decision that pleases all parties involved. While it may sound like it could require soul-searching, often the answers become quite clear after some discussions.

Once you’ve figured out what it is you truly desire in a home, you need to be realistic with your budget and what you can afford at the time. Your budget helps you narrow down what area you can live in, what kind of mortgage payments you’re comfortable with, and what interest rate you can live with. There are a lot of things you need to consider before making this kind of investment, and one financial mistake can lead to something you could end up paying for the rest of your life.

You’ll also want to devote time to researching various communities you have your eyes on – this way, you can price shop and see what some homes are currently selling for, what kind of public services you’ll be taxed for, and more. You can also see what schools, public transit systems, and other amenities are in these neighborhoods, and compare them to others nearby.

When you’re looking to find the perfect home or piece of property, whether it’s an investment or a home you intend to make a life for you and your family in, there’s no step more crucial than choosing the ideal real estate agent for your budget and situation. A great real estate agent can help you every step of the way to find and secure your dream home at a price you’re sure to love, while keeping your budget in mind.

A real estate agent is sure to make things dramatically easier and a great deal less stressful for you during the entire process – that’s what they’re there for. Buying a home is a life-changing decision, and you want to make a calculated, educated decision about the home you’ll be living in with your family.

Selling YOUR Home in ANY Season!

John Rainville — Sun, 26 Feb 2012 18:26:00 GMT

There are benefits to selling your home in each season; winter, spring, summer, and fall. There are pluses and minuses in each but most of all there are definitely positive aspects to selling in each season. While many people think selling in the winter time is a bad idea, this isn’t necessarily true. Selling in the winter has many positive aspects like: The holiday season tends to create a time period when you put a little extra effort in cleaning and preparing for holiday visitors so the house is generally clean and tidy. The holiday season also provides for a cozy, warm, family atmosphere that gives an ambience that’s only around during the winter season. In winter people are familiar with certain soothing scents that make them feel reminiscent of days gone by such as cookies baking in the oven, pumpkin pies cooking, fresh Christmas trees wafting in the air, or baked apples and such. All of these scents are easily mimicked by scented candles, sprays, and potpourri available; creating an instant feeling of calm simply by using the buyers’ sense of smell. The warmth of a home is instant when coming from a cold outdoor climate. Mix that with a warm dÃ©cor that makes a person feel welcome and comfy and they can instantly feel themselves curling up on the couch in your home, especially if it’s staged properly to be inviting right at the entrance way. According to LendingTreeÂ® more homes are sold in March and April than any other month. June and July continue with a fair sales amount but the spring time has many reasons for being the #1 season for home sales: People have Spring Fever and are ready to get out of their house to do something. Open houses are a great way to get out of the house without spending any money, still take advantage of the sunshine of the spring day, and yet not have to worry too much about spring showers or cooler temps still being an issue. People who buy in the spring generally have their closings near the summer months. This gives them a better time to move and allows for an easier transition if they have children moving from one school to another without having to leave their old school in the middle of the year. Spring tends to bring color and happy feelings around. Decorating for the spring includes bright colors, freshly washed draperies and curtains and all the basics of spring cleaning. You can take advantage of that need to spring clean as a way to have your home in top shape for buyer’s to view your home. Opening the windows on a fresh and warm spring day allows for the house to air out. Smells trigger a lot of reactions in the human body and the fresh smelling air flowing through the house and perhaps a burning candle scented in lilacs or roses or any fresh floral scent brings good feelings to anyone. Dressing tables and mantles with fresh flowers, daffodils, tulips, lilacs and such brings a feeling of comfort to the home and again, a scent that brings happiness to anyone who smells it. Flowers just simply make you feel relaxed and fresh; who wouldn’t want to buy a home that’s fresh and clean looking and smelling on a bright spring day? Summer sales can be good because buyers can take advantage of everything positive about summer itself; such as: Longer days, allowing for more time to look at more houses in order to find their perfect home. Gardens and lawns can be kept up and become a huge selling point when presented properly. Backyards and patios can be turned into outdoor havens for potential buyers with simple and inexpensive fixes. A small fire pit on a patio with surrounding plants & flowers and nice outdoor furniture brings the home beyond the walls and into the outdoors so they not only fall in love with what’s inside but also with what’s outside. Moving in the summer is much more appealing in certain climates than moving in the winter. The longer days also allow for more time to get the work done on moving day; often getting the entire job finished in a single day with the right crew to help the buyer move. Their summer move can end with a relaxing evening on the front porch, swinging on the swing you just put up and sipping iced teas or cocktails with friends. Fall is one of those seasons that people tend to begin to literally snuggle in for the winter, preparing for the unavoidable cold. It’s also a time when there are certain aspects that appeal to those looking to buy a home. Fall can offer a number of positive effects that enhance the ability to sell your home such as: Bringing the colors of fall indoors gives the home a feeling of nature and indoors blending together as one in a bright and colorful palette. The warmth of the house on a crisp fall day or evening is very inviting; creating an atmosphere where a buyer can easily picture their family nestled in spending quality time together. The sweet smells of fall come in all types of scents; from a home cooked meal in the oven to the scent of fresh apples. While there may not be a good “Pot Roast” scented candle available, the fall scents that are out there such as apple pie or cinnamon bun create an atmosphere that makes the nose tell the heart that this is “home”. You can also cook a roast in the crockpot during an open house or bake some cinnamon buns straight from the fridge before showing your home and that warm cozy fall feeling will hit the buyer where you want it to! Fall weather can offer clear, crisp fall days to move instead of moving in the middle of a heat wave of a hot summer day. Moving in the winter can be a nightmare if you live in climates that get snow or ice and spring can present a lot of mud from rain that can end up being one big mess on your floors and carpets even from the most well-meaning friends. There’s something about ending a day of moving with friends, gathered around a fire pit in the back yard to warm you on a crisp fall night that just finishes off the welcoming feeling of moving into your new house. The best part is that that feeling is shared with friends and family who’ve helped you get moved in, creating an instant “this is home” feeling. Many people like to be moved in before the fall because they have kids. If your home is one that is more appealing to an older couple or younger couple who don’t have to worry about kids they may look at this time of year just because they don’t want the bother of a lot of competition when looking at homes. This means they’re probably more serious buyers who want to get the job done and be moved in before winter comes. As you can tell each season offers a plethora of positive reasons to put your home on the market so don’t be afraid simply because of the time of year it may be. Take advantage of the positive aspects of the season and make your home into an inviting house that grabs the buyer’s the minute they walk in the door.

First Time Home Buyers Checklist!

John Rainville — Fri, 24 Feb 2012 18:34:00 GMT

Time Home Buyers Check List

Many times when the process is complete, first time home buyers look relieved but also amazed.

They wonder how it all seemed to whirl by so quickly and how it ever happened that one moment they were saying “We should buy a house” to hearing “Here are the keys!”

The truth of the matter is most first time home buyers have been looking and buying long before they realized it. Most start by maybe picking up a few free home listing books you see at the grocery store or maybe a search on the internet for some homes in the price range or area you were thinking you wanted to buy in. In reality you’ve been a buyer for quite some time now but maybe you’re just entering the real world market.

How To Go About Looking At Homes

We’ve put together a checklist to go through to make sure you keep things straight in your mind as to what you saw and what you liked or loved. You may never need the list. You may just walk into a home at one point and know that it’s the one. Some people know immediately, while others like to think it out over and over while weighing the good and bad.

Here are some things to do or keep in mind while you’re viewing homes. It’s not uncommon to look at up to 7 homes in a day if you’re strong willed and willing. Others may prefer to take their time and view a few homes at a time. Either way you go, you’re going to want to have references to go back and compare. Actually, even if you’re not a first home buyer this checklist could be a great way to make sure you’re not overwhelmed by it all:

First Home Buyers Checklist

Take notes on each home you view, keeping it all in a notebook.
Note special features that catch your eye, unusual architectural features that appeal to you, or special areas that you like.
Note any repairs that you see immediately and put as much information as possible so you can research how much it would cost to repair (for example you notice a cracked window or an entire wall that the plaster is cracked)
Bring a digital camera with you and take pictures from the front of the house, the back and each room inside to remind you of what the house looked like.
Put down ages of important things such as the roof, siding, furnace, air conditioning, hot water tank, appliances that go with the house and so on.
Drive around the area and take notes about the location – do you like that it’s close to shopping areas or is it too close? Are there industries nearby that could cause issues? Are there parks and green areas nearby that you like? Is there a neighborhood just a block or two away that isn’t considered good or safe that would worry you or are the neighborhoods all around you decent and nice?
Question the agent about the zoning area. Although it may be all homes right now, that beautiful wooded area that’s untouched across the street could be turned into a strip mall if the zoning isn’t zoned for housing only. Some areas are zoned for commercial or light commercial but currently have only houses. This leaves room for the house next door turning into a daycare center or small business. You want to be sure you know what you’re moving into as far as zoning. Make note of it in your notebook also.
Notice what surrounds the house immediately – are there high rise buildings that block your views from your window? What are the houses like directly on either side and across the street?
Drive by the area at different times of the day and on weekdays along with weekends to see what the neighborhood activity is like.
Rate the home on a scale of 1 to 10 with 10 being perfect before you even drive away from the curb from your first viewing.

Using a checklist will help you keep track of each home you look at; especially if you end up viewing a few homes each week. You’re going to be able to keep track not only with a listing of notes but pictures to jog your memory of which house that was. You can place stars next to the ones that rate high and maybe do a return viewing of the home if you’re interested. It will help you keep from feeling overwhelmed, even if the home you decide upon buying is one you literally walk through and immediately say this is it!

Understanding a Short Sale

John Rainville — Fri, 24 Feb 2012 02:44:00 GMT

Short sales have become more prominent in the real estate business, in line with the burst in the housing bubble across the United States.

However, it could be a good option for a seller who’s facing bankruptcy or even foreclosure.

In order to understand if this is a reliable option for you, consider speaking with a realtor who can guide you through the process. If you are on the brink of foreclosure or have already filed for bankruptcy, you can talk to your attorney or find a real estate lawyer, who specializes in these types of cases.

During a short sale, the home lender (bank or mortgage company), accepts a payment from the perspective buyer that is lower than the total amount do. However, it is important to understand that not all lenders accept short sales and certain properties don’t qualify. In some cases, it makes more sense to move on with a foreclosure, so a short sale no longer is a viable option.

There is a benefit to the housing market crisis: it has created a good environment for perspective home buyers. Whether you are simply looking to make a change in your life, or you’ve been stashing away funds for that house down the block for more than 20 years, it really is, “a buyer’s market.” However, dealing with a short sale can be stressful for a current home owner, who can’t afford to stay in their home sweet home. If you are on either side of the fence, you should consider the following tips.

The first step you should take is to contact a real estate attorney. They can explain specific short-sale properties and particular tax ramifications. They can also help determine what other home buying options you might have based on your financial situation.

Even though mortgage companies and lenders have a range of requirements, they usually expect the borrower submit a substantial amount of documentation. Below is a small break down of what you can expect.

You might have to make a handful of calls before you actually find the person that is handling the short sale. Keep in mind that you want to go directly to the source. You will want to track down the name of the supervisor. If they are unavailable, leave a voice-message. Do not get bumped around from department to department, as this will only push you away from the person that is responsible for the sale.

Usually, lenders won’t disclose any information unless you produce written consent. If you are working with an attorney or agent, you could streamline the communication process by writing a letter directly to the lender, giving them permission to discuss the extent of the loan. Keep in mind that the letter should incorporate the following information: loan number, property address, your name and both your realtor’s and your lawyer’s contact information

This is a statement that displays the estimated sales price along with costs associated to the sale, unpaid balances on the loan, outstanding payments of late fees, and possible commission. Your realtor or agent should be the one to prepare the document.

You should provide a hardship letter that lays out your personal dilemma. The statement describes what got you into a financial crunch, while also making a plea to see if the specific lender can accept an offer that is lower than the full payment. In some cases, lenders are will understand if you lost your job, were in a serious vehicle collision, or got ill. It would be helpful to be honest and forward about your situation, so the lender can work with you personally.

Be prepared to review your bank statement with the lender. If your statements include substantial cash withdrawals and deposits that are unaccountable, this can serve as a red flag. The lender may also ask you to provide a line by line breakdown of each deposit to determine whether more income will be coming in.

It is also important to keep in mind that property values can fluctuate, depending on the location and world-wide economic state. The term comparative market analysis, also referred to as a CMA, displays the prices of homes that are similar that are either actively being sold on the market or sold within the past 6 months. Obtaining a copy of this analysis can potentially show a lender that you have been directly affected from market conditions. If the lender sees that you are not responsible for your home sitting idle on the market, this can work to your benefit.

Once the two have you have negotiated a fair agreement to finally sell the home to a prospective buyer, the lender or financial institution will request copies of both the offer and listing agreement. You should also be in the position to possibly renegotiate commissions or other payments related to home inspection. Be prepared to provide the lender with your credit report, even if you are worried about your score. Once you complete all these steps you will be ready to walk away from a short sale.

Single Women Buyers in the Market

John Rainville — Mon, 20 Feb 2012 00:41:00 GMT

Times have changed for sure. In a market that used to be mainly married couples purchasing homes we are seeing more and more single women in the market now. The trend seems to be one on the rise so realtors and sellers alike are starting to recognize a whole new marketing area to focus on. Most single women want 2 or more bedroom houses. They are much less likely to go with “new construction” as opposed to older homes or newer homes that have been built in developments. Single women tend to stay in the city areas as opposed to buying in suburban areas. Many prefer condos that are neat, crisp, clean, and come with a homeowner association. Many prefer the safety factor of a gated access or security system entrance area. Single women tend to spend under $200,000 They come to the board with a listing of their desired amenities and don’t usually budge too much on compromising them. Many will accept smaller sized homes in order to get the amenities they prefer. They prefer to be closer to shopping areas, stores, and local gym & fitness places. Single women are very particular about location and will not compromise the quality of the neighborhood to get what they want. Most women come into the buyer’s market very ready and buy within a matter of less than 30 days Oddly enough single women don’t necessarily fall into the category of those never married. Many who are classified under this type of buyer are divorced women, women with children and functioning as a single parent, and some have partners they live with but purchase the home themselves. Many live alone also and often these are the types that are interested in condo situations or areas that provide security. Sellers and agents alike have begun to realize that the single woman buyer is a new and expanding area to lock into and often hold seminars for women buyers. This is no longer a man’s world or a family world of business but has become one where single women make up a nice piece of the market to connect with. Many have a strong desire to move on with their life after a divorce; while others are looking for more security and space to secure a lifestyle they’re ready to begin. Those with children want to provide for their children and often have solid jobs that allow for them to begin saving money for down payments and the ability to make payments without worry. Ages range from early 20′s to late 60′s and everything in between. Some are looking for their final place to retire in while others are looking for their first place to begin. Either way, this is a new and untapped market that is rapidly trending.

When Is It Good To Refinance My Mortgage

John Rainville — Sun, 19 Feb 2012 18:41:00 GMT

People often wonder if they should refinance their mortgages when they start seeing newscasts that talk about the great buyer’s market and the falling mortgage rates.

But does this mean you should immediately jump on the band wagon and refinance your current mortgage?

Not necessarily. Make sure you have all your ducks in a row before jumping into the pond. Refinancing isn’t always an option or the right choice; while at other times it’s also the best choice. Don’t go about the decision blindly and don’t be afraid to find help.

You can contact a realtor to ask for some guidance towards who to ask the right questions to. Make sure you work with an agent you trust. Some can guide you with simply getting you in contact with a finance company they know and work with; while others can even help you through the process with minimal to no fees involved.

Some Requirements

First off in order to refinance your mortgage most mortgage companies require a minimum of 10% equity in your home. If you don’t have the equity in your home you’re going to end up having to pay the difference up front to bring your equity to at least 10%.

This means that often you end up having to come up with more money as an additional down payment as if you’re buying the home all over again. That’s generally not an appealing option for most people; not to mention it kind of defeats the reason for refinancing in general, which is to more money.

Most mortgage companies won’t even consider refinancing if you have any late payments due. Most require that you’ve had no late payments for at least the past 12-15 month period. Your credit score is important. Before you even think about refinancing you will want to pull your credit report and first, see if it’s accurate. Next you’ll want to repair any problems or negative points on your report. If your score is extremely negative you are most probably not going to be approved for a refinance loan.

What to Know

Compare Rates – Always compare the rates of various mortgages but it’s not just that cut and dry. You must take into consideration such things as points you may have to pay in order to refinance, refinancing fees, and other fees that may be placed upon you should you decide to refinance. Be sure you also know up front what you must pay for. You may be surprised to find that the lure of some lower rates also come with surmountable additional expenses that can be very cumbersome to take on.

The 2% Rule – The 2% Rule applies when the refinancing interest rate is 2% lower than your current rate you can make up the difference in any loan costs, assuming you have no plans of moving immediately. With the 2% rule you will save a reasonable amount in interest through the lifetime of the loan, while taking advantage of no-cost or low-cost loan options. The down side to these loans is that they are usually slightly higher in interest rates than the current lowest rates and options are often limited, especially if the current economic situation is unstable. The plus side is that you save on interest rates, enough to make a difference, you aren’t socked with tons of financing fees, points and costs usually associated with refinancing and you’ve lowered your rate by 2%. This 2% rule is actually a fairly “old fashioned” method of refinancing and while it still does apply to many situations, you can actually have situations where, especially with larger loans, you can save a substantial amount of money with as little as a half-percent. No matter which case, you always need to take into consideration if the amount you will save in the long run is worth the cost of refinancing.

Know Your Future Plans – You have to know your future plans. While none of us has a crystal ball that can tell us things like medical emergencies that can change our life or job changes, etc. but we can plan the future and have a general idea of what our plans are going to be. A general rule of thumb is that if you don’t plan on staying in your home for a lengthy period of time, it’s generally not worth refinancing your mortgage. Between the costs involved and the time and effort it takes you will never make back the money you’ll put out unless you plan on keeping your home for a longer period of time. Also, if you’re not going to be able to compensate for the costs of refinancing your mortgage within a reasonable amount of time you’re going to want to say “no” to the idea of refinancing. This is where comparing costs to savings and the end results should confirm what your decision is regarding refinancing.

The Easiest Way to Compare – The easiest way to compare whether it will pay off to refinance your current mortgage or stay where you are is a very basic rule of thumb. Like all financial decisions they should never be taken lightly. You should always seek professional guidance when making a decision as large as refinancing a mortgage.

That being said you can also have a very basic way to help you determine a first plan of action and making the decision if the refinancing is worth it. Take the total cost of refinancing (such as closing costs on a good faith estimate) and divide that by the amount of you will save each month on your payment. This will tell you how long it is going to take you to just break even with the costs of refinancing. After that, any amount after that is money you are truly going to be saving.

Here’s an example: Let’s say your refinancing costs you $4,000 to refinance a loan that is going to lower your monthly payment by $250. This means that 4,000 divided by 250 is 16; telling you it’s going to take 16 months of making payments just to break even on the $4,000 costs to refinance. That’s under 2 years to pay off the costs of refinancing; if you’re considering staying in the home you’re in for over 2 years it definitely would pay off to refinance your loan.

Now let’s look at another scenario. If refinancing is going to cost you $6,500 but only lowers your payment by $100 a month; it’s going to take you 65 months (over 5 years) just to pay off the refinancing charges and break even. As logic would tell you, this is probably not a smart idea. The problem is that many people only see the quick $100 less per month and that impresses them that their mortgage payments become $100 lower. But the reality is, you’re really not getting anywhere when you truly look at the numbers and figure what it’s going to take you to break even.

The Final Decision

The final decision comes down to many factors and is ultimately yours to make. You have to figure out the benefits of the actual refinancing in order to decide if it is worthy. Use the quick, basic figuring we explained of dividing the total cost of refinancing by the amount you are saving each month on your monthly mortgage payment. This will give you a quick look and answer to whether it is even worth taking any more time to consider.

Consult with a financial advisor or lender, but don’t always believe the numbers until you’re sure of what you’re seeing. As we showed you, the lure of a $100 a month less on your mortgage payment may seem wonderful until you realize it’s going to take you 35 years to pay the amount of the refinancing back. It’s always great to see a savings up front but the true savings comes when you figure out how much you are actually saving in the long run.
Don’t be bullied into doing something you’re uncomfortable doing. Go with your own instincts, judgment & gut feelings.

Bouncing Back From The Housing Blues

John Rainville — Fri, 17 Feb 2012 01:08:00 GMT

While we’re emerging into the third year of the housing crisis, there are some signs of recovery. However, selling homes still remains a challenge in widespread areas across the US.

A major challenge for sellers today is that many intending buyers are putting their decision on hold for various reasons.

A steady flow of poor home sales data across the nation only contributes to further dip in prices and promotion of the negative sentiments. Nevertheless, when you have reached the difficult decision to sell your home, you have fewer options and you must sell before you find yourself even deeper in the hole.

You have invested time, money and thoughts to make your home the best place to live for you and your family. But, what is best for you may not be what the prospective buyer is looking for. Take a tour of your home and take an inventory of needed repairs. You’d be surprised to learn that fixing broken window panes, getting that squeaky door changed, or even adding a coat of paint can not only add value, but attract serious buyers. It’s important to focus on both the internal and external appearance of your home, to make it appealing to a perspective buyer.

One way to cash in for your home is by considering a remodeling or expansion project. Adding an extra bathroom or play space can add extra space, and eventually a bigger price tag on your home. However, it takes money to invest in projects of this scope. That’s why it’s advisable to shy away from any value addition right away. Consider pitching the idea to the buyer and work it into the home’s sale price. Similar opportunities may exist in making the home more comfortable and potentially profitable. In addition, it won’t look too bad on your behalf that you’re willing to go the extra mile.

The digital world offers wonderful opportunities in getting your message across to millions of people. Using the social media to your best advantage may however need some degree of expertise. Remember, you are not the only one in your neighborhood that wants to sell their home. When using social media to attract buyers, using multimedia tools such as videos or pictures can be very helpful. This will not only help keep interested buyers on your page, it will also encourage them to contact you, if they are pleased with what they see. With that said, pay attention to how your pictures and videos are presented. A low resolution video could have an adverse effect if your viewers are struggling to watch the video.

If you lack the tech experience, as your real estate agent is he has experience in videography. This is important because your prospect may skip your presentation and look at another home if your video looks unprofessional or is poor quality. Notice how I referred to the videographer as an investment. This is simple because the money that you may spend on videos and other social media, can potentially pay you rich dividends when you find your buyer.

No matter how much personal value you may find in your home, the buyer will just see it as another house on the market. With that in mind, keep up with your competition. Do some research by finding the asking price online and consider going to a competitor’s open house. This is the most realistic way to see things from a buyer’s perspective. You will also see what sales tactics their using to lure buyers, which can eventually help you in the long run.

The Real Estate Players---Understanding Who to Work With

John Rainville — Mon, 13 Feb 2012 20:09:00 GMT

The Real Estate Players: Understanding Who to Work With

Considering making a move out of your tiny apartment? It’s a buyers market, with historic record low rates. It’s no wonder you’re seeing a market filled with new or first time home buyers.

However, it is important to understand that a purchase goes beyond financing options and a signature to seal the deal.

Purchasing a home is a long term investment, which you can gain promising returns in if you execute the right steps. However, it is important that you hire the right people, to help you throughout your home buying journey.

Finding the Right Market

If you are really looking for a return on investment, talk to your real estate agent about long term options. Since agent performance is often based on the economy, they will help guide you in the right direction. Find out what communities are in demand. You will often find that prices for homes that are in demand may be more pricey initially, but give you a more promising return once it’s time to sell. That is why every home buyer should understand the climate of the real estate market, before making an rash decisions.

First Step in Home Buying

The first thing you will want to do is simply start researching the properties you are interested in. It is helpful to find out how much property owners are paying for the particular property every month, before you even begin to look at homes, make sure that you conduct your own investigation. This will mean that you should find the going rates, how much other owners are paying every month and how this fits into your budget. After you find some properties that you are interested in, you will have to find someone to work with you throughout the process.

Hiring an Agent

Finding a resourceful real estate agents is one of the most important decisions you will make in this process. They will help you find the right deal, based on your budget. They can also guide you in the right direction, in terms of your mortgage options. One of the most important decisions that you can make is to find the right real estate agent.

Finding a Lender

Finding a reliable lender with a good track record is another important step when purchasing your first home. A good lender will provide you with loan options that fits within your personal or family budget.

Your lender is one person that can make or break you with finances towards your home. Before you become involved with anyone that will involve your money, you need to make sure that they are going to offer you the best. Once you know some basic concepts, you can begin to find a lender that will fit your needs. However, there are other costs associated with the purchase, besides the loan itself. Ask the lender if there are rate locks or pre-payment penalties, to ensure you know what your money is really going toward.

Understand how the lender will personally benefit your situation. In some cases, the lender will incorporate discount points to your loan and lender guarantees. In the long run this can help you gain credit a lower the rate of your home loan. It is best to understand the terms of your agreement and make sure you are truly getting what you pay for.

Whether your trying to refinance your loan or you are moving into a new home, it is always important that you streamline an effective communication process with your lender. Meet with them face to face and give them an opportunity to walk you through your options. Developing a good relationship with your lender can help you in the long run. Always be prepared to ask questions, so the lender can explain options that will suit your situation.

Last Few Days to Get Phones in for "Cell Phones for Soldiers"

John Rainville — Thu, 07 Apr 2011 09:45:00 GMT

Tyler Piatt-Rainville's Boy Scout Eagle Leadership Project is in it's final few days.

Please let Tyler know if you have any old, broken or used cell phones you can donate.

It is a great project as it helps our Troops be able to call home from duty stations around the world where the cost to call home can be as high as $8 a minute!

Soldiers can get pre-paid phone cards or even cell phones to stay in touch with loved ones.

Tyler's # is 717-943-8856 or tylerapiatt@gmail.com.

The Collection drive ends Saturday morning so the phones can be shipped out to the "Cell Phones for Soldiers" charity.

Thank you for supporting our troops and the environment by recyling your old phones,

PLEASE HELP! Collecting Cell Phones For Soldiers!

John Rainville — Thu, 24 Mar 2011 11:48:00 GMT

My son Tyler Piatt-Rainville a Life Scoout with Boy Scout Troop 284 from Lewisberry, PA is doing his Eagle Leadership Project now.

He is setting up 40+ collection sites in our area to collect used, old, broken, cell phones to be reclaimed or recyled by the "Cell Phones for Soldiers" Charity. The proceeds are used to buy our soldiers, and sailors pre-paid phone cards or cell phones so they can stay in touch with their familes.

This is a great cause. We all know how much our troops an their families sacrafice for us.

Most of us have old or broken cell phones we have thrown in junk drawers. PLEASE dig them out and get them to one of the collection centers BEFORE April 8th. Tyler is working hard to get 1000 phones.

Any questions or if you want a collection box, flyers, or more info call Tyler at (717) 943-8856.

His Facebook Page is http://www.facebook.com/pages/Cell-Phones-for-Soliders/123136271092575?v=app_112078882147346

AWESOME HUD HOME! 911 Nixon Dr in Monroe Township

John Rainville — Fri, 19 Nov 2010 17:16:00 GMT

Monroe Township, Mechanicsburg - Announcing a NEW HUD Acquired home! 911 Nixon Dr, a 2,285 sq. ft., 2 bath, 5 bdrm single story. Now MLS® $135,500 - .

Property information