10 Best-Kept Secrets for Buying a Home

10 Best-Kept Secrets for Buying a Home

Get the most out of your money with these handy home-buying tips.

Buying secret #10: Keep your money where it is

It's not wise to make any huge purchase or move your money around three to six months before buying a new home.  You don't want to take any chances with your credit profile.  Lenders need to see that you're reliable and they want a complete paper trail so that they can get you the best loan.

Buying secret #9: Get pre-approved for your home loan

There's a big difference between a buyer being pre-qualified and a buyer who has a pre-approved mortgage.  Anybody can get pre-qualified for a loan.  getting pre-approved means a lender has looked at all of your financial information and they've let you know how much you can afford and how much they will lend you.

Buying secret #8: Avoid a border dispute

It's absolutely essential to get a survey done on your property so you know exactly what you're buying.  Knowing precisely where your property lines are may save you from a potential dispute with your neighbors.  Also, your property tax is likely based on how much property you have, so it is best to have an accurate drawn up.

Buying secret #7: Don't try to time the market

Don't obsess with trying to time the market and figure out when is the best time to buy.  Trying to anticipate the housing market is impossible.  The best time to buy is when you find your perfect house and you can afford it.

Buying secret #6: Bigger isn't always better

Everyone's drawn to the biggest, most beautiful house on the block.  But bigger is usually not better when it comes to houses.  There's an old adage in real estate that says don't buy the biggest, best house on the block.  The large house only appeals to a very small audience and you never want to limit potential buyers when you go to re-sell.

Buying secret #5: Avoid sleeper costs

The difference between renting and home ownership is the sleeper costs.  Most people just focus on their mortgage payment, but they also need to be aware of the other expenses such as property taxes, utilities and homeowner -associations dues.

Buying secret #4: You're buying a house - not dating it

Buying a house based on emotions is just going to break your heart.  If you fall in love with something, you might end up making some pretty bad financial decisions.  There's a big difference between your emotions and your instincts.  Going with your instincts means that you recognize that you're getting a great house for a good value.

Buying secret #3: Give your house a physical

Would you buy a car without checking under the hood?  Of course you wouldn't.  Hire a home inspector.  It'll cost about $400 but could end up saving you thousands.  A home inspector's sole responsibility is to provide you with information on the homes overall structure, codes and potential areas not seen by the untrained eye.

Buying secret #2: The secret science of bidding

Your opening bid should be based on two things: what you can afford (because you don't want to outbid yourself), and what you really believe the property is worth. your Realtor can help you with this decision.  Make your opening bid something that's fair and reasonable and isn't going to totally offend the seller.  You need to look at what other homes have gone for in that neighborhood and you want to get an average price per square foot.  Sizing up a house on a price-per-square-foot basis is a great equalizer.

Buying secret #1: Stalk the neighborhood

Before you buy, get the lay of the land - drop by morning noon and night.  Many homebuyers have become completely distraught because they thought they found the perfect home, only to find out the neighborhood wasn't for them.  Find out how far it is to the nearest grocery store and other services.  Even if you don't have kids, research the schools because it affects the value of your home in a very big way.

source: www.hgtv.com

Springmill Crossing

Uncle Jay explains Congress!!!!!!!!!!

Protect your home from foreclosure

Protect Your Home From Foreclosure!

What is a foreclosure? A judicial foreclosure is when a creditor, typically a bank or morgage company, files a lawsuit after you fail to pay part of the debt and a sheriff sale occurs which allows the creditor to take the title to your property.

What do you do if you receive a letter about foreclosure?

• Do NOT ignore the letter. You should call or write to your lender and explain your current financial situation. The lender may be able to offer you some help if they know your current situation.
• Stay in you home for the time being. You might be able to qualify for certain kinds of assistance if you leave the property. As long as a court has not ordered you to leave, you can stay.
• Contact a HUD-approved housing counseling agency. These organizations can give you information about programs and services. Their services are usually free. Be cooperative; these agiences are here to help you try and stay in your home. Go to http://www.hud.gov/ or call (800) 569-4287.
• Be aware of foreclosure recovery scams. Don't sign anything you don't understand without getting professional advise from an attorney, trusted real estate professional or a HUD-approved housing counselor.

Additional Resources;

• www.hud.gov/foreclosure - if you are worred about foreclosure, get help NOW!.
• http://www.877gethope.org/ - Visit the Indiana Foreclosure Prevention Network's website or call 1-877-GET-HOPE.
• http://nopawsleftbehind.org/ - If you or someone you know has a pet that has been displaced due to foreclosure, go to No Paws Left Behind.

Source: http://www.indianajustice.org/

Housing Crisis Demystified?!

This video is perhaps the best and most simple explanation of the housing and credit crisis that we are currently facing. It starts at the very beginning and takes us through all of the steps that have led to our current situation in the housing/credit/banking industry. Well worth the 10 plus minutes of watching! The only negative is that it stopped at the crisis point - wish they had gone to tell the world where to go from here - they seem to have their finger on the entire situation!

http://www.crisisofcredit.com


Jane Wells

Forget the V8 Give me the $8,000

The recent stimilus package passed by Congress give first time buyers an $8,000 credit on their home puchase. They are even allowing these buyers to use the money for their down payment. While it's not as good as the $15,000 we all wanted for all buyers, this is a step in the right direction.

This new tax credit that runs through the calendar year 2009. This credit applies to any first time buyers who purchase a home during this period. The $8,000 is a significant step in helping thouse first time buyers with their down payment. Many Americans have found it difficult to save minimum of 3.5% required by FHA.

For further details, check out the website: http://www.federalhousingtaxcredit.com/2009/faq.php

SHOW ME THE MONEY!!!!!!!!

This famous phrase from the move Jerry McGuire starring Tom Cruise and Cuba Gooding has become a common phrase in board rooms, business negotiations and now real estate. Little did we know this phrase would be even more relevant today than a few months ago.

Within the last year most Americans have watched their housing prices tumble; their 401K programs dwindle and their stock portfolio's shrink. Who would have known by the end of 2008 the market would turn upside down. Where are we to go from here?

There is one positive note towards first time home buyers. As Cuba Gooding Jr. tells Tom Cruise to "Show me the money", first time home buyers can tell the government to " GIVE Me My $7,500 CREDIT". This program is not well known and not well promoted in the media and is slipping by many Americans.

First time home owners (or anyone who has not owned a home for three years) who purchase a house after April 9, 2008 and before July 1, 2009 are eligible for this program. This is a great opportunity for these buyers to take advantage of this unique one time credit from the government. Who couldn't use an extra $7,500 credit after making an investment in a home?

The credit is calculated based upon the purchase price of the home. Buyer(s) are entitled to up to 10% of the purchase price with a maximum of $7,500, married filing jointly. Those unmarried can claim up to $3,750 on their tax return.

This opportunity is not only for existing homes, but new construction applies too. As long as the home owner has closed on the property on or before July 1, 2009. The tax credit does require repayment over a 20 year period. New home owners can delay up to two years after owning the home before paying on the loan. The amount is added to your yearly tax. How often does the government offer us a interest free loan?