Over the past couple of days, we’ve discussed the warning signs, as well as some common problems associated with “predatory lending”. When you’re shopping for a low-cost loan, it’s extremely important to know the right questions to ask of any lender, so that you can choose the loan that best suits your needs. Working with a REALTOR® like myself will arm you with the knowledge to protect you and your family and get you into the home of your dreams.
Of course you want to find the lowest mortgage rate possible and get the best deal. However, it’s also important to work with a lender who is ethical and who will work with your best interests in mind, rather than his or her own.
Ask these important questions:
What is my credit score? Can I have a copy of my credit report?
What is the best interest rate today? Do I qualify?
Nearly all predatory lending occurs in the “subprime market,” where loans are sold to people with less than ideal credit histories. Subprime loans have played an important role in helping millions of consumers achieve homeownership, but, unfortunately, some lenders abuse their role and take unfair advantage of vulnerable borrowers. Here are some common problems with predatory loans:
High interest rates and fees: Predatory lenders often charge extremely high interest and fees that are added into the total amount of the loan the borrower must repay. These lenders charge what they can get away with, not a fair amount based on the credit history of the borrower.
Broken promises & bait and switch: Sometimes hosme buyers are offered a new loan or a refinance of an existing loan that seems to meet all of their needs–only to find that interest rates and fees have changed when they get to the closing table. Agreeing to last-minute changes can cost thousands of dollars and result in a loan they just can’t afford.
For most families, buying a home is the biggest and smartest purchase they ever make. Unfortunately, not all loans are in their best interests.
When loans hurt instead of help, they can quickly lead to foreclosure and even bankruptcy. It’s important to learn the warning signs and common problems associated with predatory lending, and to ask the right questions when shopping for low cost loans.
The term “predatory lending” covers a wide range of abusive practices. Some may be predatory for one borrower but not for another, because everyone’s circumstances are different. Predatory lenders often take advantage of first-time homebuyers and others who may be vulnerable to high-pressure sales tactics, so it pays to know how to protect yourself and who can help.
Possible warning signs of a predatory loan:
It sounds too easy: “Guaranteed approval” or “no income verification” sometimes indicate that the lender doesn’t care whether you can afford to make the payments over the long haul.
When you’re on the Internet, you don’t have time to waste on endless searches for useful real estate information. You want to get things done quickly and without hassle. So chances are you’d like a real estate agent who …
Answers e-mail promptly and professionally. Respects your online privacy. Offers home listings and other Internet tools to help you find or market a home
Enter the e-PRO.
An e-PRO is a REALTOR® who has successfully completed the e-PRO training program for real estate professionals. Endorsed by the National Association of REALTORS®, the e-PRO course teaches professionals the nuts and bolts of working with real estate on-line: Web sites, e-mail, on-line tools, and most of all, what today’s consumer really wants.
What does all this mean to you? There are several benefits of working with a certified Internet professional.
More Privacy Are you reluctant to give out contact information through the Web for fear of being pestered or spammed? e-PROs understand. They’ve learned the Web isn’t just a place to do business; you need information from someone you can trust.
That’s why e-PROs respect your privacy. They respond quickly to your questions, but don’t send you unwanted communication. And they protect your personal information.
Less Hassle Tired of struggling to find information? e-PROs are more likely to have access to the latest Internet utilities, making your life easier. These tools may include:
Online Virtual Tours Instant access to comprehensive neighborhood data Extensive property listings Immediate e-mail notification of just-listed homes meeting your criteria Referral networks and on-line forums, where e-PROs can quickly find information—even potential buyers—from other e-PROs Newsletters on current real estate conditions in your area Electronic faxes sent to you by e-mail Advanced software, PDAs, and laptops to find you answers on the spot
The result: you get more information, more easily. With electronic files, you have less paperwork to deal with. And since your agent uses e-mail, you can even eliminate phone tag. The e-PRO streamlines your entire transaction, from showing to closing.
Less Expense An e-PRO’s access to advanced technology can save you considerable expense. You have more tools to find or market your home, so you’re likely to get a better price. With on-line home tours, you reduce in-person showings—and the costs involved. And by using e-mail, you save money on long-distance calls and fax charges.
Relocating? An e-PRO is ideal for you. With the tools to do your research electronically, you can make a decision on a home the first day you’re in town—or without traveling at all. You and your family save on travel costs. And after you’ve decided to buy, monitoring the sale by e-mail saves you even more.
Should you use an e-PRO? Yes! Especially if you’re an Internet user. In this fast-paced age, technology has become a necessity. An e-PRO is someone who has recognized and responded to the needs of the new consumer. If you choose an e-PRO, it’s a safe bet you’ll get the kind of service you want, need and deserve.
Melissa DelGaudio is a REALTOR®, e-Pro, ABR and an expert in Real Estate Sales in Annapolis, Anne Arundel County and the Chesapeake Bay Region of Maryland.
I think Active Rain may have misplaced thier own logo file. I noticed on my website that the localism logo shows a broken link
Its the one that has this accompanying text:
You can find great local Maryland real estate information on Localism.com Melissa DelGaudio is a proud member of the ActiveRain Real Estate Network, a free online community to help real estate professionals grow their business.
I used this link on my own blog -- clearly because it was worth the most points, but I think But the image has been missing all day. This unique to me?
My word, has it really been 20 years. Adams, the Place for Ribs has been a Severna Park landmark for years. The tell-tale blue smoke, and wonderful scent of cooking ribs often permeates downtown Severna Park, right out side the Champion Realty Severna Park office, where I can often be found.
Adams is a real neighborhood spot, and after 20 years you'll still find a line both at the carry out side, and the seating side as families clamor for thier ribs and brisket.
In fact, Adams help sustain all of my husbands brothers, each of them worked at Adams though high school and summers during college. In fact, one brother helped open Adams, when it was a simple carry-out counter, when Dawsons was still a country store. Stores have come and gone from Severna Park, but Adams has become a steady landmark for food and fun in the Park.
Now they are celebrating their 20th year at their Severna Park location. The Annapolis Capital has the details.
"Adam's is celebrating its 20th year with an island-themed anniversary party on May 19. To enhance the menu, which includes roast pig, jerk chicken and other island dishes and drinks, the Old Mill Steel Drum Band will provide the entertainment and will receive all of the proceeds. "
I stopped into Adams last night for thier signature pulled pork and coleslaw, and picked up a flyer with details on the celebration:
Saturday, May 19, 2007
4:30 to 7:30 pm, in the Adams Ribs parking lot.
$40.00 adults, $10.00 students
Limited tickets available, 100% of ticket price benefits the Old Mill High School Steel Drum Band, who will provide entertainment.
Menu: Roasted Pig, Jerk Chicken. and other island dishes.
Round Bay is one of Severna Park’s oldest communities. It enjoys a glorious view of the Round Bay section of the Severn River — where the river widens just up river from Annapolis, and before the river narrows dramatically at Linstead on the Severn. Because of this feature of the River, the water is often calm and residents enjoy watching — or better yet participating — in sailboat races, board sailing, water skiing and jet skiiing. From Round Bay you are also just minutes from downtown Annapolis by boat.
Where is Round Bay?
Round Bay Tidbit: Local high school athletes use Round Bay as a training ground. Askweton Road — known as Askewton Hill is a steep uphill run loved by coaches for as a way to increase strength and endurance in their athletes.
Real estate Market in Round Bay Currently there are seven homes for sale in Round Bay. They range in price from $650,000 to a shade under $2,000,000. The average list price, at the moment, is $1,350,000.
Here are the listings: 600 OLD COUNTY RD See the Full Information on this house. Listed for $1,150,000.00 Featuring 4 Bedrooms and 3 Full baths. fantastic new construction by converse builders, seasonal waterview, over 3700 sqft, master sitting room, over size walkins, luxurious garden bath with separate showers and dual vanities. 2 lots avaible in this desirable community Courtesy of Champion Realty, Inc.
127 ROUND BAY RD See the Full Information on this house. Listed for $650,000.00 Featuring 3 Bedrooms and 1 Full baths. Original Bungalow built in 1922. A block from the Community beach of Round Bay. An Estate Sale, being sold “AS IS”. Call for other Estate requirements. Courtesy of RE/MAX Allegiance 622 OLD COUNTY RD See the Full Information on this house. Listed for $1,450,000.00 Featuring 4 Bedrooms and 3 Full baths. New home to be built by Dreamcraft Homes, Inc. 4 level home w/winter water views of the Severn River. Open floor plan w/great room w/FP, gourmet kitchen, formal area, & deck. Home will feature an elevator that accesses all 4 levels. 3rd floor master suite w/super bath & 2 walk-in closets. Builder can build their plan or customize your dream home on this Round Bay lot. Call Peggy today. Vol. HOA Courtesy of Long & Foster Real Estate, Inc. 123 ROUND BAY RD See the Full Information on this house. Listed for $1,275,000.00 Featuring 4 Bedrooms and 3 Full baths. Custom 3 level home to be built with waterviews and a short walk to the community beach.This elegant home features an open floorplan,large kitchen w/granite countertops+SS appliances,9′ceilings hardwood floors and great room with fireplace.Master suite offers walkin closets and ceramic super bath with soaking tub.This qualiy home comes with all the features and finishes you would expect! Courtesy of Prudential Carruthers REALTORS 113 SEVERN RIVER RD See the Full Information on this house. Listed for $1,999,500.00 Featuring 5 Bedrooms and 3 Full baths. Beautiful location to build your own home in Round Bay. Conceptual drawings for 4000 + sq ft home to be built. Unobstructed southern views of the Severn River, on a large level lot. Excellent amenities with 2 beaches, marina, ramp, playground, tennis courts and organized children’s activities. Severna Park schools. Courtesy of Coldwell Banker Residential Brokerage 107 TRAILING IVY LN See the Full Information on this house. Listed for $1,895,000.00 Featuring 5 Bedrooms and 4 Full baths. .ROUND BAY WATERFRONT!!!!Fabulous water views from every room in this 5 BR 4 BA waterfront house in the sought after community of Round Bay. Community ammenities include 3 comm. beaches, piers, moorings, slips, swimming beach, tennis courts, picnic areas. Non-riparian. Tiered deck off of D.R. and Fam Rm. New carpet and paint throughout. In-law apt. in basement. Courtesy of Champion Realty, Inc. 5 RIDOUT RD See the Full Information on this house. Listed for $1,039,000.00 Featuring 5 Bedrooms and 3 Full baths. Charming Round Bay home w/ a glimpse of the water and a block from the beach! Enjoy the summer breezes from the brand new screened porch & balcony. Beautiful new front steps & walkway! Newly finished bsmt. w/ full bath, AC, gutters, guards, bath updates. 5 bedrooms/ main BR perfect for office w/ gas FP. Lovely DR & LR w/ FP. Kitchen granite w/breakfast bar, sitting area. Walk to beaches & boats! Courtesy of Coldwell Banker Residential Brokerage
We’ve known for a while that Zillow is now accepting agent listings on their website. As a REALTOR, I now consider Zillow an integral part of my marketing process. I feel — like many others — that it’s in my clients’ best interests to gain the widest exposure for their listing as possible. As I see it, Zillow.com is another wrench to add to my marketing toobox.
And that is where I see Zillow: as a marketing tool for me, other agents and other homesellers. In his post over at Realty Objectives, “zapocolypse now” Russ gives his opinion that this is no doomsday announcement, and I agree.
Zillow is a great marketing vehicle, but I still don’t see it — or any other marketing site — as a replacement for the MLS. There are two simple reasons for this: timeliness and accuracy. As a member of my MLS I agree to, and oblige myself to keep my listing up to date, and accurate in the MLS. That listing is then added to my own IDX site, and to other marketing sites around the area, and around the country, as well. All the other real estate agents in the area agree to the same terms. Up to date, accurate information is the reason the listings in the MLS are so valuable, and why everybody wants that data. There are thousands and thousands of agents who agree to do accurate, timely, data entry that everyone else wants to scrape.
However, with Zillow, Base, and all the others, no one has that same obligation. From time to time, they’ll send you a friendly reminder to update. But they have no power of coercion to make me update my listing. Certainly FSBO sellers bear no responsibility to keep their listings up to date. You still need to take everything with a grain of salt — and with marketing sites that grain has to be a lot bigger than what might come from the MLS.
Compare that to the Rules and Regulations [WARNING: PDF LINK] of my MLS. Scroll down to Article XI and see what we as agents agree to, in order to keep the data timely and accurate.
Sec. 2. All listing agreements shall be carefully and accurately completed and signed by the owner. Required listing information shall be entered into the service within 48 hours (excluding weekends and holidays) after all necessary signatures of the sellers have been obtained unless otherwise requested in writing by the sellers. The Subscriber or the Principal Broker Subscriber shall not advertise the listing in any system or venue, public or private such as newspapers, homes magazines, internet sites or internal listing systems, until after the listing has been first entered into the MRIS® database.
Sec. 8. Failure to enter or maintain accurate and complete information relating to the listed property information will result in an additional fine as specified on the MRIS® Schedule of Fees and Charges.
It’s this enforceable contract that helps me, as an agent, be sure that the MLS is the authoritative repository of listing information for my area.
It seems to me that lots of people believe that the MLS information is kept up-to-date and accurate by some bit of magic. A lot of people are building business models on this data, and chastising the MLS for not getting it — when they are the folks who do the hard work of getting all the data, centralizing it and cleaning it up for them.
By contrast, I’m reminded of the state of real estate data on the internet BEFORE there was IDX. If you can remember back that far, the information was hopelessly out-of-date, fractured, inconsistent, and impossible to rely on, because there was no incentive for agents to keep that information up to date. Would it be drastically different today if there was no reason to keep the info up to date?
Is the MLS perfect from an accuracy perspective? Not by a long shot, but it is by far more accurate and up to date than any system where there are no rules, no checks, and no incentives to keep it so.
When it’s time to buy a home you may wonder how much house you can afford with all of you other financial obligations. Among other things, you probably have a car payment, some credit card debt, and maybe a hefty student loan installment to pay each month. Keep in mind that there will be more than the monthly cost of the mortgage to budget for, also allowing for closing costs, home insurance, and possibly private mortgage insurance.
Here is a quick way to figure out how much debt you may want to carry. Keep in mind, however, this a general formula and doesn’t apply to everyone’s situation. In most cases, you should be able to afford a home that costs about 2½ times your annual gross income. Many lending institutions suggest that your monthly mortgage payments, including costs for interest and insurance, equal about 30 percent of your total monthly income. So, for a couple earning a combined $100,000 per year, that amount would be a monthly mortgage of about $2,500. Your total debt load, which includes what you pay monthly for your mortgage, credit card bills, car and student loans, etc., should equal about 38 percent of your monthly gross income.
Melissa DelGaudio specializes in Real Estate in Anne Arundel County and the Chesapeake Bay Region of Maryland.
When conversing with real estate agents, you will often find that when they talk to you about buying real estate, they will refer to your purchase as a “home.” Yet if you are selling property, they will often refer to it as a “house.” There is a reason for this. Buying real estate is often an emotional decision, but when selling real estate you need to remove emotion from the equation.
You need to think of your house as a marketable commodity. Property. Real estate. Your goal is to get others to see it as their potential home, not yours. If you do not consciously make this decision, you can inadvertently create a situation where it takes longer to sell your property.
The first step in getting your home ready to sell is to “de-personalize” it.
When a potential homebuyer sees your family photos hanging on the wall, it puts your own brand on the home and momentarily shatters their illusions about owning the house. Therefore, put away family photos, sports trophies, collectible items, knick-knacks, and souvenirs. Put them in a box. Rent a storage area for a few months and put the box in the storage unit.
Do not just put the box in the attic, basement, garage or a closet. Part of preparing a house for sale is to remove “clutter,” and that is the next step in preparing your house for sale.
What is an e-PRO … and why should you use one?
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