In the last few years, the process of buying a home has been altered by the so-called mortgage crisis and the continued evolution of online real estate tools. So in this article, we will take a fresh and modern look at the process of buying a house. More specifically, I will outline the general process in twelve clear steps. If you are ready to take the steps into home-ownership please feel free to contact me www.kyleashworth.com or call my office at 435-789-7555.

1. Check Your Credit

Credit scores have always been important for home buyers, but they are more in the wake of the mortgage meltdown of 2007 - 2008. According to industry experts, home buyers in 2006 needed a credit score of at least 620 to qualify for the best interest rates on a loan. Two years later, borrowers needed a score of 760 or higher to get the best rates. That's a much stricter requirement!

So your first step should be to review your financial situation. Order your credit reports from Experian, Equifax and TransUnion, and check them for errors. Order your credit score (different from your reports) to see how you stack up against the national average. If necessary, focus on improving your score by paying down credit card balances, making all future payments on time, etc.

Click here to visit our loan pre-approval center:  www.kyleashworth.com/tools_financing.html

2. Determine Your Budget

Don't make the mistake of letting a mortgage lender tell you what you can and cannot afford, in terms of a monthly mortgage payment. In reality, the only thing a lender can tell you is the amount you qualify for -- not the amount you can realistically afford. In other words, you should determine your home buying budget for yourself. There are a lot of free mortgage calculators online that can make this process easier for you.

3. Research and Choose a Type of Mortgage

Do you know the difference between a fixed-rate mortgage and an ARM? This is just one of the things you need to understand before applying for a mortgage loan. Because of increased competition in the lending industry, there are more types of home loans today than ten years ago. The key to success when choosing a mortgage is to consider your long-term plans and find a loan that matches those plans. To do this, you must learn the pros and cons of the primary loan types.

4. Get Pre-Approved for a Loan

Pre-approval is a process in which the mortgage lender reviews your financial and credit history to determine your "creditworthiness" ... an industry term that means: "How much of a risk is this person, and how much are we comfortable lending?" When you get pre-approved for a certain loan amount, there's a good chance that you'll receive final approval for that amount as well, when the time comes.

Having a pre-approval letter in hand also shows sellers that you are serious about (and capable of) purchasing their home. This can make a big difference in hotter real estate markets, where the seller may receive multiple offers from competing buyers.

Click here to visit our loan pre-approval center:  www.kyleashworth.com/loanfinancing.html

5. Find a Real Estate Agent (this is the easy part...Kyle Ashworth..hint hint)

If you are buying a home for the first time, or in a new city you're not familiar with, it's wise to hire a professional real estate agent. When you compare the amount of money you'll pay for a new home with the size of the agent's commission, you'll see that it's worthwhile to hire an agent. Choose an agent who specializes in helping buyers, as opposed to sellers.

Feel free to interview me as a Realtor and ask questions regarding your homebuying needs.  You may call me at 435-789-7555, email at kyle@kyleashworth.com or visit my website at www.kyleashworth.com

6. Narrow Your Search

The neighborhood you choose is nearly as important as the house itself, because both have a direct bearing on your quality of life -- not to mention the future resale value. For these reasons and more, it's always best to live in a city for a while before buying a home, even if it means renting an apartment for a while. That way, you can discover which areas you like best before committing to an area.

7. Begin House Hunting

This is where you and I will visit properties in order to find one that matches your needs. Here are some helpful tips. Take a digital camera with you to get pictures of each home. This will help you recall the details later on. Bring a notepad as well, and for the same reason. While you're at it, you might want to bring a friend along for an unbiased opinion of each property -- you know, that outspoken friend who calls it like it is.

8. Evaluate the Asking Price

It's referred to as the "asking price" for a good reason. Just because a property is listed at $250,000 doesn't necessarily mean it's worth that amount. This is another area where it helps to have a real estate agent. Most agents are expert at validating sale prices against recent sales in the area, and that's the best way to find out if the price is realistic or inflated.

9. Make an Offer

Once you've determined that the price is fair and reasonable, you are ready to make an offer on the property. Always make the offer contingent upon the home inspection (see next item). That way, if the inspector uncovers an issue that you consider a deal breaker, you have a way out of the contract. We can also discuss the contingencies within contracts.

10. Get a Home Inspection

Most inspections only cost a few hundred dollars. That's a small price to pay for the peace of mind you get in return. A home inspector will review the structural and mechanical aspects of the house, including (but not limited to) the roof, foundation, electrical, and heating / cooling system.

11. Attend the Closing / Settlement Process

So, you've made it through all of the inspections and the process is still on track. Great! The next step will be the closing / settlement process (it goes by different names in different parts of the country). Actually, you can prepare for this process early on by putting extra money aside. This is when the title to the property is transferred from the seller to the buyer. You'll also be signing a lot of paperwork and paying any other fees that are due.

12. Tie Up Loose Ends

After your move, you'll have a few more things on your task list. Transfer your utilities if you haven't done so already. Complete a change-of-address form with the post office. Get a safe deposit box for your home insurance policy and other important documents. Set up a mortgage payment schedule or an online auto-pay system. And give yourself a pat on the back ... you're now a homeowner!

Get on the phone now!  Let me help you into home-ownership.  Call me today for a no obiligation consultation to discuss the home buying process.  You may call me in my office at 435-789-7555 or log onto www.kyleashworth.com for useful information including a contact form.

Are the Buyers or Sellers running your market?

I currently work in what I believe is the busiest and strongest real estate market in Utah. The Vernal Utah real estate market is booming. What is causing the real estate boom, especially in a small city located almost 200 miles from the nearest mall or food court? Our main drive is Black Gold, Texas Tea. Step aside Clampet family, this boom is for real! And it is making many millionaires each day. I want to give you a quick view of our market before I get too excited telling you about the many wonderful real estate opportunities in Vernal.

I moved to the Vernal area in the summer of 2003. The city was a stereotypical small town, minimal traffic lights, a handful of fast food restaurants and football games underneath the Friday night lights. We were a quaint community. Oil changed our small town almost overnight. Truck after truck slowly moved oil rigs in, and almost overnight we were a boom town. The Vernal area has experienced many boom and bust cycles and the nation rides the waves of the energy economy. We have seen times of fortune and time of famine. In many cycles of boom and bust the old locals remember how the economy was booming on Wednesday and by Sunday the doors were locked and the jobs were gone. Such is life in a boom town.

So what is different? I have asked myself the same question over and over again. My answer, this boom is private. Private companies are supporting the oil and gas industry in our area. Unlike its predecessor of the 80’s, this boom is fueled by private companies supplying the government and the economy with its most prized resource, oil. In the 1980’s the government had spent millions of dollars researching and producing oil from the vast deposits of oil shale in our region. When the nation faced the turmoil of declining oil prices it was faced with two options. Firstly, continue spending millions of dollars researching the production of oil share or secondly, shut it all down. Unfortunately the latter was the case. Black Friday was a dark and gloomy day for Eastern Utah. Because of the rising oil prices, $140 per barrel, private companies feel safe and secure pulling oil out of our dirt. And that safe feeling has caused our real estate market to explode. Literally thousands of people have moved into our little town almost over night and I don’t blame them. With the declining job market nationwide, it is no wonder why even more people haven’t heard of Vernal Utah. I personally have been able to help 17 families find homes in Vernal this year from the state of Michigan alone. It makes me feel happy that I live and work in an area “underneath the umbrella” shielded from the factors that have plummeted other areas of the nation. The Sellers are still dominating my market. They name their price and they will probably get it. If they are smart they price it at or below market and have multiple offers within the first week. Come to Vernal, the weather is still fine!

If you are thinking of relocating to Vernal, or are interested in a high rate of return investment, email me for more information. kyle@kyleashworth.com

You can also log onto my website for a detailed list of all the local homes on the market.  www.kyleashworth.com

Welcome to Spring of 2008! Did you know June is National Homeowners Month? This year's theme is "Back to Basics".

From the HUD.gov website: This year's theme - "Back to Basics" - is designed to underscore the importance of having strong, common-sense fundamentals as a way to maintain a sustainable housing market. Many of those basics were ignored in the lead-up to the housing bubble. HUD's Federal Housing Administration is at the center of the Administration's efforts to help qualified homeowners refinance into safer, more affordable mortgage products.

Despite many news stories that suggest that buyers must put down at least 20% as a down payment in order to buy a home, there are many loan programs that allow a buyer to put a lower down payment, or even to refinance an existing loan with a fairly high loan-to-value ratio.

One of the oldest, most stable loan programs is the FHA loan program. FHA stands for Federal Housing Administration and as you can glean from the name of the program, it is a government-backed loan program, administered by HUD.

You might not realize that the FHA (Federal Housing Administration) has insured over 34 million home mortgages, and has been in existence since 1934.

FHA loans are for ANYBODY -- not just first time buyers. FHA loans can be used on single family houses, certain condominiums, duplexes, 3-plexes and 4-plexes. If duplex, 3-plex or 4-plex, the borrower must live in one of the units, and the loan limits for these kinds of properties are higher than for single family homes.

I have started collecting FHA tips from several lenders I work with. Here are a few that I think many of you may find helpful and interesting.

** The cost for the seller to accept an offer with an FHA loan is now only the tax service fee which is about $85. It previously cost $100 - $200 in years past.

** FHA requires only 3% down. Some of the loans above the standard FHA loan limits (temporary limits by Congress) do require 5%, but some lenders offer a loan program only requiring 3% down for the temporary limits too.

** FHA does allow seller paid closing costs. The minimum contribution for funds to close by the borrower is 3% and the funds can be gifted.

Buyers, or homeowners wanting to refinance, can apply for an FHA loan through a local mortgage lender. Not all mortgage lenders can or will do an FHA loan, so don't hesitate to ask for referrals. Take the time to explore your financing options before you go home hunting, it can well pay off in valuable information.

If you would like to learn more about an FHA loan, or apply for one, simply CLICK HERE to contact me today.

Kyle