Ira's Blog

Mortgage Points: Why Pay For Them?

Ira Freireich, Exclusive Buyer's Agent (Best Buyer's Broker Realty) — Mon, 11 Aug 2008 11:31:02 -0500

If you are in the market for a home or considering refinancing your current mortgage, you probably have heard your mortgage professional talking about points. They may advise you to buy points or they may advise you not to, depending on your situation. The question is, do you really understand points and when it makes sense to buy points?

A point is 1% of the loan amount. So, one point on a $100,000 mortgage costs $1,000. Points can be purchased in increments down to an eight of a point. It's not any more complicated than that. When should you buy mortgage points?

The pros of doing this are really pretty easy to understand. By pre-paying your interest, you get a lower rate and therefore a lower payment for the life of your loan. The cons of buying points are that you must stay in the home for a certain period before you "break even" on the transaction.

For example, if you have a $200,000 mortgage and you buy two points, you will pay $4,000 for those points at closing. If buying the points lowers your payment $250 a month, you'll need to stay in your house at least 16 months to break even (16 × 250 = 4000). In this example, after 16 months you'll start making money. After several years, you'll save a lot of money.

One other thing to keep in mind about buying points up front: Points may be tax deductible, so there is an added benefit if you qualify for the tax deduction. Check with your tax advisor before you deduct points on your taxes.

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.

We don’t take any seller listings (yet we have more homes for you to see than most agents) and never have any potential conflict of interest like other agents who also represent sellers. We represent buyers only, 100% of the time. We can show you more homes for sale because we have access to MLS, FSBOs, Exclusives (homes that agents try to keep secret), foreclosures and homes not on the market that may be of interest to you.

We are not your traditional real estate agent. Our goal is to advise and protect home buyers and help them obtain the lowest price and best terms on their dream home. Call us at 516-887-6901 to see how we can help you save time and money. Or visit our sites at http://bestbuyersbroker.com or http://bestbuyerbroker.com.

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Sale / Rent Back Schemes: Not Always What They Seem

Ira Freireich, Exclusive Buyer's Agent (Best Buyer's Broker Realty) — Mon, 11 Aug 2008 11:24:33 -0500

As the slumping economy and ensuing credit crunch takes hold, and more and more people are struggling with their mortgage repayments, a number of companies are springing-up who offer a "sell / rentback" scheme. This type of proposal involves the homeowner having their house bought from them, for a percentage of its market value, then offered the chance to be a tenant, negating the need to have to vacate the premises.

For some, it seems like the perfect opportunity to get rid of a mortgage problem and not have to deal with the hassle of moving. However there are some critics who state that the schemes may not be all they appear to be and might actually be more trouble than they’re worth.

Some homeowners have reported receiving only half the market value of their house, with others stating the rental agreement was not upheld. There is also the risk that the company to whom the house is sold may not be able to maintain the mortgage repayments, and you, as former owner turned tenant, will ultimately face eviction anyway.

Although the general idea behind a sale and rent back is sound, the way it is handled and put in place is not, and homeowners aren’t as protected as they might think they are. As soon as they have sold their house to one of these schemes, then they have very little control over and above what is written in their contract. This forms the basis of one of the main arguments against sell and rent back companies – that the landlord can set the purchase price, rent and terms of the lease, and is very likely to be abused.

There are a lot of calls for this industry to be more highly regulated, in order to give customers the protection they deserve, and if complaints about various companies continue to rise, then the government and Office of Fair Trading will have to step in at some point and put down some ground-rules.

Do you know anyone who has sold, or may be thinking about selling, their home on one of these "Sale Rent Back" schemes?

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.

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Reappraising Appraisers

Ira Freireich, Exclusive Buyer's Agent (Best Buyer's Broker Realty) — Mon, 04 Aug 2008 12:03:48 -0500

While our nation's real estate downturn is still unfolding, there's been lots of talk about how to prevent a repeat in the future.

Part of the fix to the problem involves better regulation of appraisers. Money Editor Stacy Johnson looks at some of the changes that are in the works. Video runs 1:25…

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.

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Housing: Where Do Obama and McCain Stand?

Ira Freireich, Exclusive Buyer's Agent (Best Buyer's Broker Realty) — Mon, 04 Aug 2008 11:58:22 -0500

Wondering where Barack Obama and John McCain stand on the controversial housing meltdown issues?

Obama wants the government to step in to help homeowners facing foreclosure. McCain has gradually broadened his position to support government intervention, but wants stricter requirements for borrowers seeking aid.

Obama supports:

Allowing troubled homeowners to refinance to a loan insured by the Federal Housing Administration.
Allowing subprime borrowers to challenge foreclosure proceedings if they've been subjected to abusive lending practices.
Creating a 10% tax credit for homeowners who do not itemize their taxes.
Creating a $10 billion fund to help victims of predatory loans.
Creating a separate $10 billion fund to help state and local governments maintain critical infrastructure.
Authorizing bankruptcy judges to reduce mortgage principal.

McCain supports:

Giving homeowners the chance to have their loan modified, provided they meet certain criteria.
Offering of financial assistance to borrowers contingent upon lending reform.
Providing more funding for community development groups so they can expand their home rescue efforts.

Both candidates say they want to go after predatory lenders. Obama introduced the STOP FRAUD Act in the Senate and now it's a part of his platform. McCain called for creating a task force to investigate criminal wrongdoing in the mortgage lending and securitization industry.

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.

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The New Housing Stimulus Package

Ira Freireich, Exclusive Buyer's Agent (Best Buyer's Broker Realty) — Wed, 23 Jul 2008 17:42:55 -0500

Even with Presidential veto threats looming, the housing stimulus package has taken another necessary step to being implemented – it has taken on another round of changes, passed the Senate, and is on its merry way to the White House again.

The package is much larger than our aforementioned Foreclosure Prevention Act – it goes by a few different aliases, all hoping to do the same thing – give the US economy the kick in the pants it needs.

Here are the highlights of the new package:

We all know conventional and FHA loan limits have been raised through 2008. Currently set to expire on New Year’s Eve, the housing stimulus package includes plans to keep them higher than they were in years past – it’s likely to be somewhere around the $700,000 mark. This means lower rates on bigger loans.
Tax credits for “first-time home buyers” – it’s in quotes for a reason. This group is defined to include actual first-time home buyers and buyers who have not owned a home for at least three years. The tax credit for those buyers can be up to $8,000.
A property tax reduction for American homeowners—$500 for single filers and $1,000 for joint filers—for the 25+ million homeowners who pay property taxes, but choose not to itemize their deductions.
What about homeowners already in distress? They’re covered, too – the FHA is working on programs, including FHA Secure, to assist homeowners currently behind on their mortgage and for those who currently owe more than their home is worth. It could help up to 400,000 homeowners potentially facing foreclosure.
And for the lenders? Better disclosure with regards to the potential changes in mortgage payments during the loan’s lifetime. The information will need to be provided at least seven days before closing.

Those are just the high points of the housing stimulus package. While controversial, Congress has taken ample time to discuss, re-write and re-discuss the bill. It’s coming to the point of fruition – will President Bush sign or not? If he doesn’t, the fact remains that Congress could be so united in the housing stimulus package that they will override him.

What do you think will happen?

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.

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Houses Trading Like Stocks?

Ira Freireich, Exclusive Buyer's Agent (Best Buyer's Broker Realty) — Mon, 14 Jul 2008 09:54:19 -0500

In some parts of the country, the housing market is every bit as risky as the stock market. Seems appropriate then that you can trade houses just like you do stocks. Never heard of the concept? Money Editor Stacy Johnson, explains… (Video runs 1:44)

Any comments about this "House Trading" ? Tell us what you think.

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.

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Free Credit Scores, Not Just a Credit Report

Ira Freireich, Exclusive Buyer's Agent (Best Buyer's Broker Realty) — Mon, 14 Jul 2008 09:48:22 -0500

If you're thinking about buying a home or refinancing - even if you've got excellent credit - you may want to avail yourself of a forthcoming free service that could help you get a better mortgage rate.

Under the terms of a national class-action settlement, you may qualify for six or nine months of daily monitoring of your credit file plus unrestricted access to your credit report and score. To be eligible, you need to have had any form of open credit account - a charge card, student loan, auto loan or a mortgage - at any time between Jan. 1, 1987, and May 28, 2008.

An estimated 160 million American consumers can meet that criterion, though eligibility expires Sept. 24.

The free monitoring services could prove especially useful for home buyers who need to keep a sharp eye on their credit reports in the months immediately preceding their loan applications. Any significant glitch, inaccurate negative information or missing positive information in their files could depress their credit scores dramatically.

That, in turn, could make it tougher for them to obtain the best rates in today's market - where lenders are demanding higher credit scores for their standard rates, and often won't touch applicants who have low scores. For home buyers with minimal down payments, there's a double whammy: Mortgage insurers have imposed strict new minimum credit scores for applicants with less than 20 percent down payment cash.

Under the terms of a settlement agreed to by TransUnion - one of the three dominant credit repositories - you can visit the Web site www.listclassaction.com or call (866) 416-3470 to register a claim.

The settlement sets up a tiered menu of remedies for you to choose from, including:

• Nine months of free credit file monitoring services if you agree not to file an individual lawsuit against TransUnion seeking damages. In addition to monitoring - where the bureau alerts you by e-mail within 24 hours of any significant change in your credit data - you can also lock your entire file so that lenders, insurance companies and others cannot access your TransUnion report without your permission. On top of this, you can receive "unlimited daily access" to your credit report and TransUnion credit score, plus a "suite of insurance scores and a mortgage simulator service" to help you qualify for a better home loan rate. TransUnion estimates the current retail value of this option at $115.50.

• Six months of free credit monitoring, credit lock privileges and unlimited access to your credit report and score. This option, valued at $59.75, allows you to receive a possible cash payment out of the $75 million fund if any money is left over after paying lawyers' fees, notification costs, and priority payouts to named plaintiffs.

• Even if you opt to file an individual lawsuit against the company, you are still eligible to receive six months of free credit monitoring.

Think of this settlement this way: It's free and it's educational at the very least. If you're serious about getting a mortgage in the months ahead, it's a rare slam-dunk.

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.

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Jumbo Loans for Larger Home Loans

Ira Freireich, Exclusive Buyer's Agent (Best Buyer's Broker Realty) — Mon, 07 Jul 2008 13:13:43 -0500

In some real estate markets, a house in the $400,000 range may be considered a starter home. So the million dollar question is, "Why is it that a home loan in the mid $400's is considered a Jumbo Mortgage Loan?"

While most of us see the term "jumbo" as relative, Fannie Mae and Freddie Mac, two government sponsored mortgage entities, have their own opinions. Each year, a new "conforming loan limit" is published by these organizations.

The conforming loan limit is the maximum loan size eligible for purchase by either Fannie Mae or Freddie Mac, who purchase the underlying securities from mortgage originators. Those funds are then reinvested in new mortgages, and the flow-of-funds cycle continues.

The conforming loan limit, or "Jumbo Loan amount" is set every January. The current conforming loan limit is $417,000.

When a loan amount is higher than the conforming limit, it becomes a Jumbo Loan, or non-conforming loan, with slightly higher interest rates.

Jumbo Loans, compared with historically low mortgage rates, can bring greater flexibility for some home buyers to purchase the house they want and make the payment they want.

With interest rates so low, consumer interest in Jumbo Loans is very high. If you are looking at homes that wouild cause you to secure one of these "jumbo loans", talk to a mortgage expert to see if you qualify to get your jumbo loan with a low or no down payment. There are more options out there than most people understand, so it's important to talk with a professional in the industry before you start your home search.

If you have questions about jumbo loans, or any area pertaining to home loans, mortgages, or home buying, contact us. If we don't have the answers you're looking for, we'll find them for you, guaranteed.

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.

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Is Anywhere Totally Safe from Disasters?

Ira Freireich, Exclusive Buyer's Agent (Best Buyer's Broker Realty) — Mon, 07 Jul 2008 13:08:03 -0500

This is a question worth answering no matter where you live. People in some parts of the country are highly susceptible to hurricanes, while others face virtually no risk from them. Some live with the risk of earthquakes, others do not.

Recent flooding that swamped parts of the Midwest, including Indiana, Wisconsin and Iowa, caught many property owners unprotected. Only 1 percent of all Indiana homeowners have flood insurance. Wisconsin reports even less than that. People generally pass on federally backed flood coverage because they don't realize it falls outside standard home insurance or they underestimate the risk.

Wisconsin Insurance Commissioner Sean Dilweg expects damages from flooding that passed through his state to top $100 million. But of the 2 million households statewide, only about 13,600 had flood insurance policies.

A lack of flood insurance isn't limited to the Midwest. The National Flood Insurance Program estimates that only half the property owners were insured when hurricanes Katrina and Rita tore up the Gulf Coast in 2005. The program paid $15 billion to those who did have coverage during what it deems the costliest storm season on record.

Being in the early stages of the 2008 Hurricane Season, and in the aftermath of the unusual flooding in the midwest, NOW might be a great time for EVERYONE to check their homeowner's coverage. After disaster strikes is too late.

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.

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Short Sales: What Are They?

Ira Freireich, Exclusive Buyer's Agent (Best Buyer's Broker Realty) — Mon, 16 Jun 2008 13:31:37 -0500

We've had people asking us lately, "What is all this talk about Short Sales?… what are they exactly?"

Very briefly, a short sale home is a home where the seller is having to sell because of a looming foreclosure. They have a higher loan on the home than it's worth, so they are what is called upside down in their loan. The sellers can negotiate with their banks and lenders to allow them to sell the house for what it is worth rather than what they owe on the home. The deal is called a short sale because the seller is selling the house for less than he owes. The owner may be liable for the difference or the bank may absorb the difference in hopes of preventing the home from going to foreclosure.

If a home is listed and the listing says offers must meet approval of the owner's bank you can pretty much bet this is a short sale home. Another indicator of a short sale home is a home that has been on the market for a long time and the price has steadily come down from the original asking price. You have to be careful though, because falling prices don't ALWAYS mean this particular sale is a "Short Sale", especially in light of generally falling prices everywhere in recent months.

Please feel free to call us if you still have questions about what a short sale is.

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.

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Mortgages with Bad Credit History

Ira Freireich, Exclusive Buyer's Agent (Best Buyer's Broker Realty) — Mon, 16 Jun 2008 13:24:58 -0500

As home loan guidelines get stiffer and stiffer, more and more people are finding bad credit mortgages as plan A, not plan B as it used to be. But just because you're in the market for a bad credit mortgage loan doesn't mean you shouldn't still look for the best deal possible.

It's best to explore various options when it comes to finding a good rate as these will differ from lender to lender. If you are one with bad credit and looking for a bad credit mortgage loan, know that your rates may depend on your circumstances. This means your flexibility with the mortgage lenders should be at an optimum level. Interest rates may vary according to the circumstances, location, and severity of your bad credit history. Interest rates on bad credit mortgages are likely to be significantly lower than the rates on your existing unsecured debts such as credit cards and personal loans. So this is actually more advantageous than letting such personal debt eat you up.

If you are seeking a bad credit mortgage loan your quest for redemption should start with those mortgage lenders who are more likely to help you. Ideally these lenders should have bad credit mortgage loans within the top tier of their mortgage products. These lenders are happy to help you with a second or third chance. They'll work with you on things such as rate and mortgage insurance.

Above all, do your research. Talk to several lenders. Don't just take one lender's decision as being the only way for you.

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.

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House Trends Leaning to Smaller Homes

Ira Freireich, Exclusive Buyer's Agent (Best Buyer's Broker Realty) — Fri, 06 Jun 2008 13:49:40 -0500

Over the years, many a forecaster has predicted the mass downsizing of the American home. Instead, the average size of newly built houses has continued to rise from just over 1,600 square feet in the late 1970s to nearly 2,300 now.

But a number of trends now suggest Americans really might be leaning towards smaller homes now.

For starters, baby boomers, whose eldest members turned 62 this year, are increasingly becoming empty-nesters; with children gone, they need less space. Between 1970 and 2000, the percentage of nuclear families - married couples with kids - declined from 40% of households to 24%, according to the Census Bureau. And childless families are expected to increase. For them, the supersize house may no longer be the ideal.

In a February survey of potential home buyers by the National Association of Home Builders, 60% said they would rather have a smaller house with more amenities than the other way around.

If the trend toward smaller homes does take root, it could trigger a seismic shift in home values. A recent study by online house-pricing service Zillow.com found that less expensive houses appreciate more than costlier and presumably larger homes. If that continues, the large home may turn out to be the real estate bubble's biggest booby prize.

What are your feelings about this trend? Do you find yourself wanting (or needing) less space than you have now? If you don't own a home now, are you thinking smaller than you once were in looking for that first home?

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.

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Home Energy Audits

Ira Freireich, Exclusive Buyer's Agent (Best Buyer's Broker Realty) — Fri, 06 Jun 2008 13:39:45 -0500

Everyone seems to be looking for ways to cut down on gasoline consumption to save money, but cutting down on energy consumption in your home is critical too. Free energy audits from your utility company are a popular way to save up to 30% on your energy bill... but you can always do it yourself! Stacy Johnson explains in this short video (1:22)...

Have other suggestions for ways to save energy? Post your comment below.

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.

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What is Happening to Mortgage Brokers?

Ira Freireich, Exclusive Buyer's Agent (Best Buyer's Broker Realty) — Thu, 29 May 2008 11:53:22 -0500

What a difference a burst bubble can make. Only two years ago, mortgage brokers originated more than two-thirds of new loans, according to Wholesale Access, a mortgage research firm. Now their share of the mortgage pie has dropped to 45%.

That's a shocking loss of market share when you consider that brokers were supposedly a boon to borrowers. Because they don't work for any one bank, they can (supposedly) shop dozens of lenders on your behalf to get the best loan at the lowest price.

But they seldom did. Instead, many of these mortgage brokers pocketed kickbacks from banks in return for selling borrowers unnecessarily costly loans.

An April study by the Center for Responsible Lending, a nonprofit organization working to eliminate abusive lending practices, found that among borrowers with credit scores of 640 or less, those who used brokers paid an average of $5,222 more in the first four years of their mortgage than those who borrowed directly from a bank. Borrowers with credit scores of 640 to 720 paid $1,316 more.

If shopping for a mortgage, and you want to use a mortgage broker instead of going directly to a bank, demand that your lending middleman set his fee in advance - not just what you will pay but also what he will get from the bank, which affects your rate. His or her total fees should not exceed 2% of the loan.

Have you used a mortgage broker before? Do you feel you were treated fairly? Leave us your comment -- we'd love to hear your experiences.

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.

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Closing Escrow: What Does it Really Mean?

Ira Freireich, Exclusive Buyer's Agent (Best Buyer's Broker Realty) — Thu, 29 May 2008 11:41:39 -0500

Escrow is a written agreement between the seller and buyer of a property. The moment escrow comes into existence, a third party person, known as an escrow holder, comes into existence. An escrow holder is liable for all the activities executed by both the parties for the purpose of closing the escrow within the desired period of time.

An escrow holder acts as an unbiased personal agent for both parties and collects the funds and documents for the smooth transfer of ownership. An escrow holder is trusted by both the parties, and carries out his job faithfully.

For the successful closing of escrow, the escrow holder strictly follows the instructions of the escrow deed. If the conditions of escrow are not fulfilled, the seller can ask the escrow holder not to hand over the documents to the buyer. And, in the same manner, if the buyer's requirements are not fulfilled, he can also ask the escrow holder to not move the funds.

In some states, attorneys act as the escrow agent or holder.

Closing of Escrow

Closing of escrow can not be completed without the fulfillment of certain conditions. To ensure that both parties are performing according to the guidelines of escrow, the escrow holder inspects the ongoing process on regular intervals. If there is any lack of performances, by any of the parties, the escrow holder will immediately report this matter to the concerned party, and follow the instructions, as given.

All the expenses related with the escrow are paid by both the parties as decided. Payment of title insurance, attorney fees, fees for preparing the documents, notary fees, and loan fees are some of such expenses. The payment details are given in the escrow. All of this is to assure that no disputes arise between the seller and the buyer.

The process of escrow is simple, and can be fulfilled by buyer and seller. But, just because of the nature of activities and involvement of paperwork, keeping an escrow holder is always advisable. Closing of escrow under an escrow holder becomes easy, and all parties involved in the transactions can easily relate their responsibilities with each other to avoid creating extra work, and also to save time.

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.

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Homeowner Mortgage Bailout Poll

Ira Freireich, Exclusive Buyer's Agent (Best Buyer's Broker Realty) — Sun, 25 May 2008 15:53:44 -0500

Americans remain split on whether homeowners about to default on their mortgages should receive special treatment to help them keep their houses, according to a new research poll.

The poll finds 49% of Americans believe such homeowners should receive special treatment, while 48% feel homeowners should not get assistance. Three percent of those polled had no opinion.

Congress also appears split on the issue. The House is debating Democrat-sponsored legislation that would let the government back loans for homeowners facing foreclosure and would reduce the principal owed on those mortgages. Many Republicans oppose the bill, and President Bush has threatened to veto it.

What's your opinion? Do you think homeowners in danger of losing their homes should get government assistance to keep them from losing that home?

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.

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Home Loans Without the Big Down Payment

Ira Freireich, Exclusive Buyer's Agent (Best Buyer's Broker Realty) — Sun, 25 May 2008 15:48:49 -0500

Many people give up on the dream of home ownership before they even get started because they just don’t believe they will ever be able to afford the down payment and closing costs.

A down payment can be as much as 20 percent or more of the purchase price of the house and if you are looking at homes that cost as little as $150,000 you will need to come up with as much as $30,000 just to be approved for the mortgage. Most people don’t have this sort of money sitting in their bank account.

For those thinking these fees would hold them back from home ownership, there is an alternative. There are home loans out there that will help you to get into a home for very little in the way of a down payment and very little in the way of closing costs. Not everyone will qualify for these loan programs, but many people will and many people have been able to buy a home because of them. Why not find out if you qualify?

One of the best home loans for people without a large down payment is an FHA loan. FHA loans are loans provided by a lender but insured by the Federal Housing Administration. These loans allow a lender to provide funding to those who may have less than perfect credit because they are insured against default. These loans are a great option when you don’t have a lot of cash on hand because the down payment can be as little as three percent. When you are buying that same $150,000 home you would be looking at a down payment of $4,500 instead of $30,000. That's a much better deal, and while it still make take some time and effort to come up with the funds, it is much more doable for most people.

In addition to having lower down payment requirements, these loans also have limits as to what can be charged when it comes to closing costs. Many people are not prepared for the cost of closing a loan and they are handed a bill for thousands of dollars and their jaw sort of drops open. It’s hard to come up with these funds and a down payment. When you look at FHA home loans you will find they make closing costs much more affordable. There are also programs out there for you to take advantage of that will help you pay for the closing costs as well as the down payment.

Do your homework when it comes to financing the home of your dreams. You may just find that you can get into that new home for a lot less than you thought.

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.

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Home Appraisals: Changes on the Horizon?

Ira Freireich, Exclusive Buyer's Agent (Best Buyer's Broker Realty) — Mon, 19 May 2008 10:04:53 -0500

A major legal brawl is breaking out over how homes are appraised, at what cost, and by whom. The outcome could directly affect the price you pay for your next piece of real estate, and the amount of mortgage money you can obtain.

The fight centers on an unusual agreement reached in March among Fannie Mae, Freddie Mac, their federal regulator, and New York Attorney General Andrew M. Cuomo. The agreement took the form of an out-of-court settlement under which Cuomo terminated an investigation of the mortgage finance giants' appraisal practices in exchange for their adoption of a far-reaching "home valuation code of conduct" covering all loans they purchase or securitize.

The code, which is scheduled to take effect on Jan. 1, would shake up the entire appraisal system:

• Mortgage brokers, who originate roughly 60 percent of all new loans, no longer would be allowed to select or pay appraisers. That could force some mortgage shoppers to pay for multiple appraisals rather than just one.

• In-house appraisers at banks and mortgage firms no longer would be permitted to do appraisals for loans to be funded by their organizations.

• Lenders would not be able to use appraisals generated by management companies - firms that contract with networks of appraisers nationwide - if they have a significant financial stake in the management company.

Inflated appraisals - often involving either pressure by loan officers or fraudulent collusion by appraisers themselves - played a role in at least some of the mess we're seeing in many housing markets.

Under the (Fannie-Freddie plan), consumers would be financially tied to the first lender they, or their mortgage or real estate professional, submits their application to. Any subsequent application may require a new appraisal, doubling or tripling the cost and time involved.

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.

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Cooling Bills: Cutting Costs This Summer

Ira Freireich, Exclusive Buyer's Agent (Best Buyer's Broker Realty) — Mon, 19 May 2008 09:52:31 -0500

Air conditioning is an expensive way to stay cool, but there are ways to chill your house without burning up your bank account. Money editor Stacy Johnson takes a look at a few ways in this short video (runs 1:41).

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.

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Home Improvements: Prices Improving?

Ira Freireich, Exclusive Buyer's Agent (Best Buyer's Broker Realty) — Mon, 12 May 2008 12:06:56 -0500

When it comes to food and fuel prices, they're going through the roof. But what about the roof itself? There the news might be a little better. Stacy Johnson takes a closer look in this short (1:18) video.

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent that specializes in Long Island real estate (Nassau and Suffolk properties) and its neighboring Queens county.

We don’t take any seller listings (yet we have more homes for you to see than most agents) and never represent sellers. We represent buyers only, 100% of the time. We can show you more homes for sale because we have access to MLS, FSBOs, Exclusives (homes that agents try to keep secret), foreclosures and homes not on the market that may be of interest to you.

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Credit Score: Do Something Before It's Too Late

Ira Freireich, Exclusive Buyer's Agent (Best Buyer's Broker Realty) — Mon, 12 May 2008 11:58:52 -0500

Making sure you have a good credit score is more important today than ever before. Not only is it crucial to helping you get the best interest rates possible when applying for any type of loan, it could mean the difference as to whether you can even find a job, if you're looking for one.

More and more, employers are now pulling your credit report to determine your risk. Typically people with good credit are not going to steal; they seem to have their life in order, etc.

So if you have had some bumps and bruises on your credit report, now is the time to get a recent copy of your free credit report and start working on your credit. Here are some areas you need to focus on to increase your FICO score.

If you have credit cards, make sure they are current. Late or past due credit is a killer on your credit score. And focus on trying to get your available credit limit versus your balances under 60%. If you have a bunch of credit cards and they are all maxed out, your credit score will be low.

If you have any collections on your credit, you must get them paid off. Until you do, your credit score will suffer significantly. Collections will stay on your credit report for 7 years and will not just go away. The quickest way to get your credit score up is by paying off collections.

The banking industry will never be same again because of the amount of mortgage foreclosures. The lending industry is tightening so much currently that families with good credit could have problems getting loans. So make sure it's not too late, if you are getting ready to make a big purchase like a new home, make sure your credit is in line with today's times.

Borrowing money is only going to get tougher. So instead of being told NO when you apply, learn how to get a YES by getting your FICO score as high as you possibly can.

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent that specializes in Long Island real estate (Nassau and Suffolk properties) and its neighboring Queens county.

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Reverse Mortgages: Pros and Cons

Ira Freireich, Exclusive Buyer's Agent (Best Buyer's Broker Realty) — Sun, 04 May 2008 14:26:32 -0500

One of the most confusing mortgages to much of the general public is the reverse mortgage. Lots of folks aren't sure what a reverse mortgage is, who qualifies, how to apply, and where to go to get information.

These are all great questions, and here is a great article that sums it up and explains it in simple terms.

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent that specializes in Long Island real estate (Nassau and Suffolk properties) and its neighboring Queens county.

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Homeowner's Insurance: When NOT to File a Claim

Ira Freireich, Exclusive Buyer's Agent (Best Buyer's Broker Realty) — Sun, 04 May 2008 14:15:14 -0500

In some cases, filing a claim against your homeowner's insurance is just not worth it. In addition to getting socked with higher premiums, you could find it harder to get coverage later.

The big question is, when should make an insurance claim, and when is best not to?

Unfortunately, there is no cut and dry simple answer to that question, as individual circumstances vary. Things such as; how long have you had your home insured without a claim?= How many claims have you had? What (specifically) were the claims for?

Different answers to those questions present a different answer as to whether you are better off filing a claim, or handling the situation yourself and NOT filing the claim.

Insurers increasingly are using a huge industry database, called the Comprehensive Loss Underwriting Exchange, or CLUE, to drop or deny coverage based on a home's history of claims or damage reports. Insurance companies are terrified of rising losses from water and mold damage. So a single report of water-related problems may be enough for insurers to shun your home.

So far, insurers' increased use of the CLUE database has not caused any serious problems those looking to sell.

Think twice about those water-related claims. This is especially true if you plan to sell within a few years. You might be better off paying to repair the problem yourself rather having your home be branded as high risk.

There are more tips for when to file and when not to online, so our advice is, do your homework.

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent that specializes in Long Island real estate (Nassau and Suffolk properties) and its neighboring Queens county.

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Home Equity vs a Line of Credit

Ira Freireich, Exclusive Buyer's Agent (Best Buyer's Broker Realty) — Fri, 25 Apr 2008 14:37:43 -0500

While the credit crunch has made borrowing for… or against… your home more difficult, home equity loans and lines of credit remain popular for those with equity.

Stacy Johnson explains what these loans do and if you should consider them. (video runs 1:27)

Leave us a comment about this tip.

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent that specializes in Long Island real estate (Nassau and Suffolk properties) and its neighboring Queens county.

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Home Inspections: What Types Are There?

Ira Freireich, Exclusive Buyer's Agent (Best Buyer's Broker Realty) — Sat, 19 Apr 2008 21:42:06 -0500

Professional home inspectors examine existing homes using professional standards as a measure to accurately report their condition to parties involved in a real estate transaction.

There are many types of property inspections offered by home inspectors, depending on your needs. These include:

Pre-Listing Inspections
Pre-Purchase Inspections
New Construction Inspections
HUD/FHA Inspections
Multiunit Inspections
Annual Maintenance Checkup

When purchasing a home, many home buyers have saved literally thousands of dollars through information provided by the home inspector. Home owners who have owned their homes for several years can even benefit from a home inspector's knowledge of maintenance and repairs, and experience to avert potential problems. In many areas where disasters have occurred, homeowners have relied on inspectors to help them identify any damage resulting from storms, earthquakes, etc., some of which could be hidden if you're not trained to look for them.

Talk to us about home inspections. We'll help you decide what type of inspection is right for you, depending on your circumstances.

Have you ever purchased a home without getting the recommended home inspection done prior to buying? Leave us your comment if you've had a good or bad experience concerning home inspections. We'd love to hear from you.

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent that specializes in Long Island real estate (Nassau and Suffolk properties) and its neighboring Queens county.

We are not your traditional real estate agent. Our goal is to advise and protect home buyers and help them obtain the lowest price and best terms on their dream home.

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