Oct. 1, 2008 - Find your FICO score-free

Equifax offers free report

It has become more important than ever to know your FICO score as well as checking your credit reports with the three major agencies: Equifax, Experian and TransUnion. 

According to the site, Equifax is offering a free FICO report to the first 10,000 applicants*.  FICO scores are used by lenders to make fast credit risk decisions of how likely consumers will pay their credit obligations.  Generally the higher the score, the less risk the person represents. 

With the tightening credit market, borrowers will likely need a score of 700 and above for a home mortgage loan.  The lender will make the final decision considering additional factors such as your employment history, salary and debt-to income ratio. 

Again, the offer is free, without obligation.  However, you may opt for upgrades for various monthly fees.  I obtained mine, choosing to accept only the free offer.  Regardless, no credit card is required.  Get your free FICO score here.

Go to https://www.annualcreditreport.com to get your free credit report.  You may choose to receive all three annual reports together or apply for each separately at 4-month intervals.  The later option will allow you to monitor your credit for unusual activity over the course of the year.

* Per the site, 10,000 applicants have been reached and the free offer is no longer available -10/4.

Sep. 12, 2008 - You can ask, but I can't tell

Megan's Law

Yesterday, I attended a conference where the guest speaker was a prominent local New Jersey real estate attorney.  One of the topics covered was Megan's Law. 

Megan's Law is the result of Megan Kanka's 1994 rape and murder by a convicted sex offender who moved across the street from the Kanka family.   The law is divided into two parts; registration of sex offenders and the notification to the community.  Here, I am dealing with the notification component.

In New Jersey, it was explained that the law prohibits the use of information about the registration of sex offenders, such as for the purpose for obtaining or denying any housing or accommodations. It was further said, "the county prosecutor determines whether and how to provide notice of the presence of convicted sex offenders in an area.  In their professional capacity, real estate licensees are not entitled to notification by the county prosecutor under Megan's Law and are unable to obtain such information for you." 

In addition, the New Jersey Real Estate Commission specifically prohibits real estate licensees from making any inquiry or providing any information about registered sex offenders.  Real estate agents are directed to inform the person making the inquiry that information concerning sex offenders is maintained by the county prosecutor.

It was made clear that real estate licensees are prohibited from providing any information about a possible sex offender living in the immediate community.  You can ask, but even if I have personal knowledge, I can't tell.  It's the law.

For more information contact the Office of the Somerset County Prosecutor, located at: 40 North Bridge Street, Somerville, N.J. 08876 Telephone: (908) 575-3300.

Sep. 7, 2008 - Paulson pulls the big bazooka

The first reactions are positive

Today, CNN reported that the Federal Government has seized control of Freddy Mac and Fannie Mae to help shore up the damaged housing market that could cost taxpayers $200 billion.  It is anticipated the bailout should result in lower mortgage costs and make credit more available.  Rates could drop by 1 per cent. Higher lending standards will remain tight and risky borrowers wills till pay extra fees.

Two months ago Secretary of Treasury Hank Paulson said that Congress had given him a bazooka by granting him power to intervene to support Fannie Mae and Freddie Mac. That comment might have very well exasperated the money problems, resulting in today's announcement. 

However, the first reactions are positive.  Both presidential candidates agree on the takeover.  CNN reports, "Sen. Charles Schumer, D-N.Y., a member of the Senate Banking Committee, said that Paulson had "threaded the needle just right" with the plan, noting that it will likely be met with praise from other lawmakers. At first blush, Wall Street seemed encouraged by the news, although the true test will come when financial markets around the globe open Monday. Pimco's Bill Gross, a widely followed bond fund manager, said that the Freddie-Fannie plan was the right move. This is a significant step and almost exactly what we had hoped for,"  

Here is the statement made by Paulson today on the takeover. 

Aug. 21, 2008 - Study shows first time buyers’ wants are in conflict

Buyers search for low price and move-in condition

Reported by MarketWatch today, first time home buyers still consider affordability as the top priority.  However, 81% also regard the move in condition to be highly important.  In short, they want it all.

It is believed this group’s expectations stem from growing up in the lifestyle of their parents; with only 7% considering the option of purchasing a fixer-upper.  The expectations may be too high for buying power of a first time buyer.

In not considering a home needing a little tender lovin' care (TLC), buyers could miss the chance to move into an area otherwise that would be out of reach.  Buyers could gain greater room for price negotiation.  And they might be able to finance the cost of the home and renovation costs over the life of the mortgage loan.

Other findings show that compared with ten years ago, first time buyers are looking for larger homes, proximity to the job is paramount, they see a home purchase as an investment and first time buyers look at five to ten homes before buying,

For the complete article, go to:  MarketWatch.com

Jul. 26, 2008 - Craigs List Scams

Beware of Real Estate Scams

CraigsList is a popular online classified service that includes real estate for sale and/or rent. The majority of postings appaer to be legit.  In fact, I've posted pending Open House dates there myself.

New York State Attorney General Andrew M. Cuomo announced last Thursday that an undercover investigation found a New York City company acting as an apartment broker used bait-and-switch schemes on Craigslist to bilk 4,000 New Yorkers out of nearly $1 million dollars.

The basic scam was the demand for paid up-front frees for credit report checks, etc.  Then it was alledgd that the website was not updated and recycled properties were emailed to clients.  If it happened there, it could happen anywhere.

Read the entire story on Amy Le's Blog on Homespace.com

Jun. 6, 2008 - What matters more?

Location, location, location

Yeah...we've all heard the line before. However, what is a great location for me might not be the best location for you.  Maybe what is important to you is proximity to work, nightlife, places of worship or recreation.  A good location could be one that is surburban or urban.  Location is a very subjective thing.

What truely defines a good location is the ability to attract and appeal to the greatest number of potential buyers resulting in the highest resale price at the time of sale.  A good location, in terms of resale value, offers well maintained properties, a diverse and thriving economy, low crime rates, easy access to transportation and/or highways and close proximity to essential services and shops; to name a few.

Whether or not you have children in school, a good perceived location is one that's associated with quality schools.  Areas in and around Somerset offers choices between urban areas, such as New Brunswick with its variety of restuarants and night life or Franklin Township's varied surburban sections such as Quailbrook, Franklin Park or Wildflower Ridge. 

Jun. 2, 2008 - More mortgage news

Rules change June 6th

Matthew Zimmerman, C-21 Mortgage has shared the following information, affecting significant changes with Fannie Mae and the Mortgage Insurance (PMI) providers that become effective June 6^th, 2008.  

v     Fannie Mae has suspended/eliminated the need for an additional 5% down payment on properties located in areas the determined to be “declining markets”, therefore, conventional financing is now available up to a LTV of 97%. 

Matthew continues to say, "However, for every action, there is an opposite reaction, but in this case not necessarily an equal reaction": 

v     The Mortgage Insurance providers have updated their guidelines and have set a minimum credit score of 660, for any primary home purchase, and 680 for any 2-unit primary, second home or investment property purchase.

For "well qualified" buyers, Matthew says this is a positive.  It allows the buyer to purchase a home again without an 8% to 10% down payment.  For those buyers who have sub 660 credit, there is still an option of utilizing the FHA for their financing needs."

It is strongly suggested that buyers obtain a pre-approval letter based upon these new guidelines.  Matthew is available all this week, and next weekend as well, to offer free no obligation updated pre-approvals for qualified buyers. Need to know more? Call Matthew at 732-267-8527 and tell him Mike Adams sent you.

Jun. 1, 2008 - Mortgage rates on the move...up

Is now the time to lock?

Several days ago I received an email from one of my mortgage contacts with the following messsage, "...over the last 4+ months where 30 year fixed rates were consistently below 6%. With the recent movement today, rates have drifted up to 6.00% (at a slight cost of .25 points) and are sitting at 6.125 (no points) for a 30 year fixed (mortgage).  These same rates were as low as 5.75% to 5.875% for the better part of the last 4 months and as recently as a week ago."

Who knows where rates will go next?  The news media sights inflation fears for reason for last week's rise in rates.  If you find a reasonable deal now, could it be worth risking a deposit to lock it in for a month or two, if you can?  Only you can determine that.  You should know that as a rule of thumb, for each $100,000 you borrow, an additional tenth of a percentage point on your mortgage rate will add about $2,300 to the total amount of interest you will pay over the life of the loan.

Check current rates at: Bankrate.com, Century21Mortgage.com, WellsFargo.com or Zillow Marketplace.com

Let me introduce you to a choice of several mortgage advisors to discuss your borrowing needs without obligation.  Contact me at mjadams@century21.com today.

May. 16, 2008 - Fare play from Fannie Mae

Down payments are equalized across the country

Fannie Mae today announced a new, national policy on down payment requirements for conventional, conforming mortgages the company will purchase or guarantee.  A conventional mortgage is one which the interest rate does not change during the entire term of the loan.  A conforming loan is one which meets the standards of the lender.  

Starting June 1, 2008, Fannie Mae will accept up to 97 percent loan-to-value ratios for conventional and conforming mortgages processed through its Desktop Underwriter^® automated underwriting system, and 95 percent loan-to-value ratios for loans underwritten outside of Desktop Underwriter, in all geographic locations in the United States.

The new national down payment policy will supersede the policy the company adopted in December 2007 that required higher down payments in markets where home prices are declining. 

The stimulus package passed and signed by the President in February raises the conforming loan limit to $729,750 through 2008 from $417,000.  Read more about this.

Apr. 30, 2008 - Checking homeowners insurance

Following a disaster, many homeowners are stunned to discover their insurance doesn’t cover everything they lost – and sometimes doesn’t cover any of their losses. We offer these tips to fine-tune your coverage. Do so before a disaster strikes, because many changes don’t take effect until after a 30-day waiting period.

Standard homeowner policies do not cover flood damage from rising water, whether it’s coastal flooding from a hurricane’s wind-whipped storm surge or inland flooding from heavy rains. Check to see if you live in a flood-prone area. If so, ask your insurance agent about the need for flood insurance. Some homeowners may qualify for the National Flood Insurance Program, depending on their home’s location.

Not all policies cover damage caused by wind or hail. If you wish to have that coverage, call your insurance agent.

If your home and possessions have increased in value or you’ve made improvements to your property in recent years, check your coverage limits. Consider increasing your coverage if the policy doesn’t cover the current value of your home and its contents.

Standard policies usually limit payments on valuables such as jewelry, silverware, antiques, boats, guns, and computers.

If you live in a condominium, find out what coverage your condominium association provides. You may need your own homeowner’s or renter’s policy to cover any damage that may occur to your unit and its contents. Pay attention to your deductible or out-of-pocket expenses. Most policies have a higher deductible for hurricane damage.

Does your policy cover the replacement cost or depreciated value of your possessions? Most policies cover the “actual cash value,” or depreciated value, of personal belongings, which means you won’t get what you paid for your furniture, electronics and clothing if they’re ruined. It costs more to insure them for their replacement value, but you’ll have an easier time getting back on your feet.

Make an itemized inventory of your belongings, including costs, purchase dates and serial numbers. attach receipts to the inventory sheet. Your insurance company may require proof of the cost of any item for which you make a claim. Dated photos or videos of your possessions are also a good idea

Keep a copy of insurance records in a safe deposit box or with a relative or friend. These records should include your insurance policy, inventory records and the phone numbers for your agent or insurance company for reporting claims. Upon receiving an evacuation notice, you should take insurance records stored at home with you, or store duplicates in a safe deposit box.

Last but not least, you might want to check about an umbrella policy.  What is umbrella insurance?   Umbrella insurance is supplemental insurance that increases the limits of your liability for a given risk. Who needs umbrella insurance?  Anyone whose total assets significantly exceed the limits of liability of existing base insurance policies.  Premiums are generally reasonable for the coverage provided.

Remember, these tips are only general guidelines. Since each situation is different, contact a professional if you have questions about a specific issue. For your convenience, here is a list of home insurance companies in New Jersey.

Source: Housemaster.com

Apr. 5, 2008 - Online mortgage quotes…anonymously

Zillow.com announces Mortgage Marketplace 

On April 3^rd, Zillow.com launched a new online service allowing shoppers to request mortgage quotes without submitting a name, address, phone number or social security number.  Borrowers reveal their identities only after contacting the lender of their choice.   

It has been reported that Spencer Rascoff, Zillow's CFO and vice-president for marketing said, "This is a huge step forward in terms of putting borrowers in control and giving them access to information."  It appears to be in step with what today's tech saavy home buyer wants.  However, according to Yahoo! News, there is potential harm to borrowers who seek a loan using Mortage Marketplace before getting advice from mortgage professionals regarding the best type of loan to obtain.

Zillow's role in this new service is merely connecting borrowers with lenders.  Zillow is best known for it’s “zestimates” of home values and their “make me move” features.  I commented on Zillow’s local accuracy in our Franklin Township market, in February.  In the end, this new feature seems to be just another lead generator for lenders.

Read more about Mortgage Marketplace here.

Mar. 25, 2008 - Is it the time to buy now?

The answer could be...yes

Well, the super rich certainly think it’s the time to buy real estate!  The Wall Street Journal and Business Week magazine both published articles about business titans, foreigners and celebrities who are buying up luxury properties.  Granted, financing might not be as crucial for them as it is for others.

So, what does this trend mean for mere mortal buyers cautious about making an offer on a home they really like today?  The reality is that serious buyers might not want to wait.  Inventories are high, giving a tremendous choice of homes.  Local home prices have come down and mortgage rates are historically low. 

What are the benefits of not delaying a planned home purchase?  

1. The tax deductions you’re eligible to take for mortgage interest, property taxes and Private Mortgage Insurance (PMI), for those who qualify, greatly increase the financial benefits of homeownership. You will reap these benefits sooner. 
2. Buying sooner gets you away from paying rent and starting to build equity in your home over the long term.  Although real estate moves in cycles, sometimes up, sometimes down, over the years, real estate has consistently appreciated.
3. Waiting could mean the home that you really want went to another buyer. 
4. Waiting for lower home prices might not equate into the overall savings buyers might expect. Recently, Time magazine made the argument that home prices and mortgage rates do not necessarily sync. 

The article explains the purchase of a $218,900 home today with an interest rate of 5.5% ends up with monthly payments less than a dollar apart when compared to purchasing the same home a year from now at $197,010, a decrease of 10% in price, but with an interest rate of 6.0%.  The selling price savings evaporates with the increase in interest rates.

Mar. 10, 2008 - The tech savvy and real estate agents

Do they really need us?

The Wall Street Journal recently asked the question, “Do Young, Tech-Savvy Buyers
Need a Real Estate Agent's Help?” Unfortunately, they never really answered the question. 

I will and my answer is, yes, they do.  Many generation X and Y home buyers don’t need the hand holding their parents wanted but there are tangible benefits provided by the use of a Realtor/real estate agent. Also, in a buyers’ market such as todays, it might seem overwhelming for some buyers to sort through all of the choices. A Realtor/real estate agent can help buyers focus on the homes that best fits their needs and wants.

Buying a home is likely to be the largest purchase you will ever make.  Realtors/real estate agents help you to keep it real.  A good agent will tell you when you are wrong and provide proper guidance.  

A good Realtor/real estate agent is like the conductor of a symphony orchestra. S/he helps to coordinate all the other professionals in de-stressing the home buying process for you; from getting pre-approved for a mortgage loan, to getting physical access to various homes meeting your specific criteria, to negotiating price/terms, to keeping the lawyer on track, to sitting with you at the closing table and the handing over of the keys. 

Regardless of the number of online photos or videos, there is nothing like seeing a property in person to help you visualize living there. Real estate agents provide access to millions of homes across this country.  Websites such as Realtor.com pull information from the local MLS (Multiple Listing Service) and those listings can appear to be "available" until they actually close. A home can show as available even though it could be well into the contract process! Also, many sites can be about a week behind current listings. So a new listing could come up, but might not show on that website until the following week.

It might not be widely known that in New Jersey a real estate contract or an Agreement of Sale filled in by a licensed Realtor/real estate agent automatically provides the both buyer and seller with three days in which to have an attorney review the document before it becomes legally binding. This is commonly called a "cooling off" period.  The three (3) day attorney review clause only applies to contracts prepared by a Realtor/real estate agent and does not apply to contracts which are privately prepared or prepared by an attorney.

In the end, we Realtors take on the tasks of being consultants and problem solvers who often make the deals happen for our clients…better.  Simply put, represented clients of better Realtors/real estate agents buy better homes at better prices.

Feb. 3, 2008 - The hard sell

The Hard Truth

In yet another report about New Jersey real estate, yesterday's NJ.com blog highlighted James Bednar's blog New Jersey Real Estate Report.  This blog has been tracking accepted lowball real estate offers of at least 20% below the original listing price.  Frankly, these deals only point to unrealistic values home owners had originally placed on their houses that had no correlation to the marketplace. 

Some commentors to NJ.com's article attempt to place the blame for New Jersey's real estate slump on the backs of Realtors. Here is an example, "The realtors and builders are the ones to blame here--they are setting the pricing and none of it adds up. They have created a nightmare and is it fixable without the homeowners taking a loss?"

Let's be honest here. It is the homeowner who ultimately sets the listing price.  Some Realtors will accept a seller's perception of overpriced value simply to get the listing; knowing it will need to be reduced in order to attract a buyer.  I've lost business (aka money) to other Realtors because I have refused to play the "listing game" of telling the seller what s/he wants to hear.  I tell the seller what s/he needs to hear, which is simply the truth.  And...sometimes the truth hurts. 

Your house is not a bank. It was designed to provide shelter for you and your family. Your house may not be worth what you want to be worth and today's value has nothing to do with what you paid for it four years ago, or what you need in profits to move on to your next home.  It's worth is what a willing and able buyer agrees to pay for it.

Star-Ledger writer, Sam Ali, reiterates what was reported last week in the New York Times, "for buyers, however, the next six months could present a rare opportunity, with a combination of low home prices, low interest rates and a wide selection of homes offered by motivated sellers." Jeffrey Otteau, president of East Brunswick-based Otteau Valuation Group supports that premise stating, "We're all likely to look back five years from now and conclude that 2008 was a time when smart buyers took advantage of this unique opportunity by locking in both low prices and low interest rates."

So, buyers...Between now and this coming summer may be your best opportunity to get the home that you really want. 

Checking Just the Stats you will find that since the begining of my reports too you, Franklin Township has consistantly shown sales of homes within 96% to 98% of the listing price for single family residences.  That is not to say that prices aren't falling here too.

If you have specific questions, wish a Comparitive Market Analysis (CMA) or want more information regarding our local and surrounding areas, please, don't hesitate to contact me.  

Jan. 24, 2008 - When the price is right

It's time to get off the fence

Fellow Blogger and NJ Realtor, Jim Flanagan, commented the other day on Sunday's New York Times article, "Buyer's Hear This" by Antionette Martin. Jim is absolutely on target that rather than being buried deep in the pages of the real estate section, this NY Times article should have been front page news. 

The NY Times article highlights the bold statements from such highly regarded analysts as Jeffrey Otteau; who publishes the Otteau Report.  The Otteau Report provides comprehensive market-level data and analysis for all 21 of New Jersey’s markets. Mr. Otteau  was quoted to say, "Spring 2008 will present a unique opportunity that has never before occurred in the housing market, namely lower home prices and low mortgage interest rates,”  Just today, Marketwatch.com reported about the "lowest fixed rate mortgages in nearly four years". That makes it a great time to buy a home.

The article also supports what I reported to you last year, in a posting titled, "Moving up in a buyer's market".  If you plan to remain in the same neighborhood and trade up to a larger home, it is a great time to sell and buy. 

Homes, here in Franklin Township, that are priced well and show well...do sell and don't linger on the market.  With the aid of a knowledgeable realtor, make the home you plan to sell be the "shiniest penny" in the jar by pricing it to today’s market; being ready to make adjustments as necessary; presenting a fresh, clean appearance and being agreeable to innovative marketing. 

It's too bad that good news about New Jersey real estate isn't concidered sensational enough to make the front page.   

Jan. 20, 2008 - Springime could be a little less taxing

Private Mortgage Insurance becomes deductible

In the wake of the President’s proposal, last week, to give tax payers a rebate this spring and with tax season looming only months away, you should know that Congress has made Private Mortgage Insurance (PMI) tax deductible for some. When less than 20% down payment is provided, PMI protects the lender, guarding against a situation in which a borrower defaults, leaving the lender unable to recover costs after foreclosing on the loan. The Mortgage Forgiveness Debt Relief Act of 2007 extends relief orinally provided by the Tax Relief and Health Care Act of 2006 through 2010 for home buyers meeting certain criteria.

This legislation typically helps first time buyers who fail to reach a down payment of 20% of the purchase price.  It is anticipated that homeowners will save a total of $91 million when they file their tax returns in 2008, according to estimates prepared by the mortgage insurance industry.

Read more about this subject in the Wall Street Journal, Online.

Jan. 17, 2008 - This is all about you

And I get it

Within the conventions of old school sales there are methods of gaining new clients and customers. Some sales agents prospect for "leads".  Others incorporate "drip e-mail campaigns"  Still others follow up with their "contacts" and place warm and cozy images with family; even including the household pooch on their websites.

There are even websites developed to produce leads for salespeople.  What these folks are missing is that no one wants to be "sold" anything.  But, buyers do want to buy.

I came across 1000Watt Blog.com (now, an instant fan) and a particular video there that blew me away.  It is titled, "I am not a lead".

Watch now

Jan. 7, 2008 - Pssst, Secrets...

Lenders don't want you to know

The right or wrong decision when signing your home mortgage can mean thousands of dollars difference in interest paid. There are very important considerations to evaluate before you commit to a 15 or 30 year note. For many of us our mortgage payment is the most important financial decision we'll ever make. Doesn't it make sense to know as much as possible about the financing of our home? Take the time to thoroughly investigate all of your options!

Unbelievably, many of us sign the first mortgage placed in front of us. Typically the excitement of the new home purchase reduces the mortgage to not much more than an afterthought. What you read here could save you hundreds or even thousands of dollars. Your real estate professional has established relationships with the top lenders in your area. By aligning yourself with a professional agent you ensure that all the financial steps are taken care of properly and economically. 

1. Utilize a Lender With Established Ties to an Agent - Lenders are much more flexible with the real estate agents who have done business with them previously. This relationship then establishes them as a team. The lender and agent work effectively together, referring each other business. That's why a good agent can make substantial difference in setting up the most economical financing. And the right financing can, literally, save you tens of thousands of dollars over the life of your loan!
2. Don't Attempt Paperwork Alone - All the paperwork required to complete the purchase of a home can be quite intimidating and frustrating for a home buyer. Make sure you have your lenders help you with all the paperwork. Get help from your team, your lender and agent. Their expertise will help alleviate the stress and it will prove to be invaluable before you sign your mortgage.
3. Look at All Your Options - Make sure you see at least 5 loan programs for your mortgage. Lenders have at least 10 programs and should work with you and your agent on deciding what is best for your circumstances. Evaluate all your options. After all it's your money you're spending - not theirs!
4. Demand Service - There is little difference between a bank, savings and loan, or a mortgage broker when it comes to the competitiveness of their loan rates. The difference is in the service they provide. It is their job to serve you! You want to get the loan approved and move into your new home as quickly as possible, but don't overlook the fact that you are the one spending the money and they are the ones who should cater to your needs. Don't let the process become so intimidating that you lose that understanding.
5. Stay in Complete Touch - You should receive a written report from your lender about every step. This will ensure that no details are overlooked and there will be no surprises.
6. Negotiate a Flexible Loan - Don't just accept the terms they lay down in front of you. Lenders are in the business of loaning money and they want your business. Make sure you examine every option available to you. If you negotiate a variable rate loan, many lenders have the ability to move you into a fixed loan if rates start going up. Make sure that you understand whether or not that is an option in the package you are looking at.
7. Don't Give Up on the First No - Initial decisions are not always final decisions. Going to a higher authority can sometimes get you the loan, but do so with the assistance and compliance of your lender and agent. Many times special circumstances when explained properly to the person in charge, will win you the loan.
8. Don't Wait for the Bottom of the Market - The odds of you hitting the bottom of your market are about like the odds of you hitting your state lotto! You will almost never hit the bottom of a market. And trying to time it exactly right is often costly. It usually causes a person or family to miss out on the opportunity to purchase a very nice property. You're better off simply negotiating the best rate and terms you can at the time you find a property. If interest rates go down, you can refinance. This is a much better approach because you won't miss out on the property you've spent so much time locating.
9. Be Honest With Your Lender - Your lender wants to help you with your loan. The only time they get paid is when you get approved. The more information (good or bad) you provide your lender, the easier it will be for them to get an approval. It helps them present the loan in the best light. This in turn helps the loan get the highest approval rating.
10. Become Completely Educated - Pick your lender's brain. Lenders will teach you all about your various options, even if you haven't found the right property yet. They will be very patient with you while you are looking, especially if you have aligned yourself with the right agent. They understand all the up-front work will pay off in future business. Your agent will then continue to refer people to the courteous and service-minded lender on down the line.
11. Get Prequalified - Lenders will provide you with a certificate of pre-qualification. By getting prequalified you know exactly what financial parameters to stay within. Your agent and lender will consult with you and help you get qualified for the loan that best fits your needs. Many times they are able to get you a larger loan than you may have thought possible.
12. Better Yet, Get Pre-Approved - When you are ready to look at potential homes, you become a stronger buyer by having your lend pre-approve your traget loan amount.  Sellers will know you have the financial ability to close the deal.  Apply to get pre-approved, today.

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    The original author is not known. It is not our intention to infringe upon copyrighted material. If you are the original author of any of these articles, please let us know so that we may provide appropriate credit.

Dec. 28, 2007 - Rear view mirrors and crystal balls

A look at 2007 Real Estate Predictions

As the year comes to a close, I thought it might be interesting to revisit some real estate predictions made for this past year.

Nov. 14, 2007 - Buying your first home

Surefire ways to make it happen

Buying and selling real estate is getting back to basics. Here are a few tips for first time home buyers.

Clean up your finances Your credit history will determine the loan terms and mortgage rates you qualify for. You could be offered a smaller loan or charged a higher rate if a lender is concerned you might not be able to repay. Also consider paying down some debt, especially high-interest debt such as credit cards that might flag you as a riskier borrower. For more on this read my other posting, "Your credit history"

Keep it separate Set up a separate account for your down-payment funds, so the money doesn't get intermingled with other savings and so you can keep track of how much you save. This would probably be a taxable account at a bank, credit union or brokerage firm.

Aim for 20 percent down I know this is easier said than done. But, aim to save up 20 percent or more of the price. The risk of putting down too little: If the home falls in value and you sell at a loss, you'll owe more to the lender than you receive from the buyer. In addition, many mortgages require buyers who put down less than 20 percent to get private mortgage insurance, which can add $80 to $100 to your monthly bill. And the less you put down, the higher your loan balance and therefore your monthly payment will be.

Get extra help Few first-time buyers pony up the entire down payment on their own. Nearly 23 percent of first down payments come as gifts from relatives and friends, according to a recent survey by the National Association of Realtors.

When you are ready to take the first leap into home ownership, contact a mortgage advisor and get pre-approved, not just prequalified. For more information, go to Century21 Mortgage

Disclosure - Century 21 Our Town Realty is affiliated with Century 21 Mortgage