Archives

March 2008

Helping Junior Buy

Posted at 3:25 AM, Mar. 28, 2008

Parents, if you really want to give your kid a head start, help them buy a home. 

It's funny, so often this is considering a rite of passage with marriage, or a sign of growing up, but some markets are making it more difficult to buy a first home especially if you are newly graduated from college and carrying debt. 

A recent real estate article offers many tips on how parents can assist their children with jumping over that first-time-buying hurdle.

Romancing The Buyer

Posted at 3:09 AM, Mar. 26, 2008

  Why is staging more critical then ever?  Here is why.  A buyer will make an initial reaction whether or not they like your  home in less than a minute.  They will spend the remaining time touring your home confirming that decision and on few occasions, rescinding it. 

Psychology experts have proven that it is human nature to react based on emotion and then seek logic to support that feeling.  You will not get a second chance to make that first impression. 

I have heard sellers say that they would much rather test the market first before having to invest any time or God forbid, money into creating an appealing product.  After all, they're moving, that is the buyer's department.  It is only after the unsuccessful showing after showing (if they are so lucky), that then they realize that perhaps they should have taken that extra step.  Unfortunately, you have already lost those buyers. 

Never, never underestimate the power of emotions when it comes to the decision process of buying a home.  The silly truth is most consumers believe they are quite practical in this regard when in reality, how the home makes you feel is really the deciding factor.  We have seen proof of that in our personal lives with choosing people to date or marry.  More often than not we pick the one that makes us catch our breath, or intrigue us.  So should a home. 

Staging today can make the difference whether or not your house is shown, and certainly if it sells.  It really doesn't require the moon to court a buyer, just a little effort.

What Mistakes Not To Make

Posted at 4:15 AM, Mar. 24, 2008

If you are shopping for a mortgage loan, take head and not make these mistakes that could halt approval from a lender.

1.  Disregarding Your Credit Reports.  This is critical.  Find out your FICO score and make any and all necessary repairs to improve it.  You will pay dearly if you overlook this component.

2.  Overborrowing.  Just because a creditor will give you a limit of $25,000 doesn't mean you should take it.  This is a credit card example, but frankly, applies to your home loan as well.  Don't take buying a new home as an opportunity to furniture shop as well, namely if you are doing it on credit.

3.  Changing Your Job.  This is not the time to find your passion in life.

4.  Cutting Down on Credit Cards.  Paying down your credit card debt is important, but closing accounts when you are establishing mortgage worthiness is a no-no, especially if it is cards that have a long history with you.

5.  Moving Your Money.  While you are shopping for a loan, don't decide you are unhappy with your current bank.  Keep your money seasoned and in place until after you have closed on your new home.

Mortgage Deadbeats

Posted at 3:53 AM, Mar. 21, 2008

This is not to sound like an attack on serious people in default, but I came across an article from the Wall Street Journal that stated the willingness of borrowers to "walk away" from mortgage debt has contributed to extraordinary high levels of early default reported by analysts at Fitch Ratings*.

Their reports to investors have indicated that such behavior is not willful fraud, but clearly shows that American homebuyers are not the victims of their lenders as previously perceived.  In fact, they are perfect capable of making rational decisions without political intervention.

What appears even worse with this report, is that borrowers who are, in theory, able to afford their homes, are opting to ditch once they become cognizant that what they owed is more than what comparable houses in the surrounding areas where selling for and would be unable to make their return on investment anytime in the near future.

Is this the new bankcruptcy trend?

The upside, is that those willing to take such bold moves will suffer a hit on their credit.  Until people are willing to change their behavior, the market will not change. 

*RealEsateJournal.com,Commentary:The Rise Of the Mortgage Walkers, Nicole Gelinas, February, 11, 2008.

20 Ways to Plug Financial Leaks

Posted at 3:45 AM, Mar. 19, 2008

WHERE TO TURN FOR MORTGAGE HELP

Posted at 3:32 AM, Mar. 17, 2008

Illinois Foreclosure Hotline
Illinois Foreclosure Prevention Network: Call 1-888-995-HOPE(4673) for mortgage help.

• The statewide Network provides FREE mortgage counseling and assistance for homeowners facing increasing mortgage payments and possible foreclosure.

• Foreclosure counselors are trained to negotiate with lenders and servicers on behalf of homeowners. All counselors are trained to HUD guidelines. 

• Homeowners can receive information about the alternatives to foreclosure and the different resources available.

• Click below for more info and to see a list of all Illinois Foreclosure Prevention Network participants.

Click here for more information.

COURTESY OF THE CHICAGO ASSOCIATION OF REALTORS

Is Money The Cause of Most Breakups?

Posted at 4:37 AM, Mar. 14, 2008

THE NEW FHA LOAN LIMITS

Posted at 4:28 AM, Mar. 12, 2008