Sharon's Blog

Know What You Want In a Home

Property Management — Fri, 13 Jun 2008 20:42:29 -0500

Know What You Want In a Home

This evening my friends and I are hanging out in my family room. As I'm sprawled across a chair, enjoying the camraderie, I remember the importance I placed on a family room while I was home shopping. I wanted a home that was comfortable, welcoming. For me, this included a family room just the right size to enjoy with friends and family.

When looking for a home, my realtor and I spent time discussing what was important to me. As we shopped, I used this criteria to compare homes. I planned to live in this home for a very long time (at least 10 years), so I stayed with the plan. It's been 15 years, and I still love my home. My friends, both old and new, continue to enjoy my family room.

Photos courtesy of stock.xchng.com

Mid Hudson Valley - It's Time to Buy!

Property Management — Wed, 11 Jun 2008 17:49:52 -0500

Mid Hudson Valley - It's Time to Buy

Despite what you may hear in the media, now is a good time to buy a home. Mortgage rates remain in the historically low range. Sellers are more willing to negotiate. Inventory is stabilizing, as is the number of days a house is on the market. The Mid Hudson Valley, though susceptible to market influences and the downward of the real estate industry, has faired better than other areas of the country. Take a look at the 2007/2008 median home price comparison.

May, 2007 Median Home Price May, 2008 Median Home Price

Orange County $319,900 $307,713

Ulster County $247,000 $245,000

I bet the change in price is much smaller than you expected. If you take into account the potential tax advantages of home ownership, the difference in price can be insignificant.

Mortgages rates remain in the historically low range. Sellers are more willing to negotiate. Now is the time to buy!

Picture courtesy of stock.xchng.com Source of Statistics: RecordOnLine.com

Am I ready to buy a home - A home buyer's strategy

Property Management — Mon, 09 Jun 2008 18:08:51 -0500

Many first time home buyers are hesitant to take on the responsibility of home ownership. Most of us who own homes understand the concern, because we experienced it ourselves. Choosing a home was fun. The real work began with the mortgage process. Here are some guidelines to help you decide if your are ready to buy a home:

Do I have a steady income?

Have I been continuously employed for the past 2 years?

Do I pay my bills on time?

Am I able to cover my bills and other debt?

Do I have the ability to pay my mortgage ( principal, interest, taxes and insurance), maintain a home, AND pay all other bills (including such things as gas, electric, cable, water, car note, credit cards, student loans)?

Do I have money saved for a down payment and closing costs?

If you answer yes to these questions, you might be ready to buy a home. If you answer no to any of them, concentrate on strengthening those areas

Am I Ready to Start Looking? - A home Buyer's Stragegy

Property Management — Mon, 09 Jun 2008 18:07:25 -0500

Do I have a steady income?

Have I been continuously employed for the past 2 years?

Do I pay my bills on time?

Am I able to cover my bills and other debt?

Do I have money saved for a down payment and closing costs?

If you answer yes to these questions, you might be ready to buy a home. If you answer no to any of them, concentrate on strengthening those areas

100% Financing AND No Mortgage Insurance: A Home Buying Strategy

Property Management — Tue, 29 Apr 2008 13:13:01 -0500

100% Financing AND No Mortgage Insurance: A Home Buying Strategy

No down payment, 100% financing, no money down - these phrases are not often heard in today's mortgage environment. Most mortgage professional are now touting FHA ,or 3% down. There are two mortgage products that allow 100% financing and also eliminate the need for mortgage insurance. One of my clients recently informed me that his attorney advised him that this was an impossibility. Well, I'm here to tell you it is very possible, here's how.

VA Loans - 100% financing and No Mortgage Insurance

A VA loan is a mortgage loan on approved property made to a qualified veteran. It is backed by the U.S. Department of Veterans Affairs under its Home Loan Guaranty Program. These loans have features that can make it easier for qualified veterans to get a mortgage. For example, no cash reserves are required for loan amounts less than or equal to $417,000. Greater than $417,000 only a 2 month cash reserve is required. Mobile homes are acceptable. This loan helps borrowers who have imperfect credit and low cash.

USDA Rural Development Guaranteed Loans - 100% Financing and No Mortgage Insurance

Rural Housing loans are one of the best kept secrets in home finacing. These loans offer low interest rates for those who buy homes in what is considered "rural" areas. They are 30 year, fixed rate loans. Home buyers must be US citizens or legal aliens with permanent status. There are income limits and homes must be located in a rural area. I provided links to a website that can help you determine if income and home location meet the guidelines. One of the great features of this loan is that improvement costs can be included in the loan amount.

This is very high level information on these two loans. What is important is that you know these type of programs exist. Contact me if you need specific details.

Photographs courtesy of Stock.xchng.com

Think Twice before Cosigning - A Credit Strategy

Property Management — Mon, 21 Apr 2008 15:38:11 -0500

Think Twice before Cosigning

It is important to understand the ramifications of cosigning a loan. It means more to you than helping out a family member or friend. A cosigner in needed because the primary borrower has insufficient credit. As a cosigner, you promise to pay if this individual does not. The debt is attached to your credit, so you have a major stake in the repayment. If payments are late or missed, your credit score can suffer. If payments get behind, the lender can request tha you bring the account current. When applying for a mortgage, this debt can be counted as a monthly oblibgation and limit the amount you can spend on a home.

Take a look at a informative guide on the FTC's website regarding cosigning.

Photo courtesy of Stock.xchng

Pay More Than the Minimum Payment - A Credit Strategy

Property Management — Sat, 19 Apr 2008 16:58:54 -0500

Minimum Payments Are the Floor, Not the Ceiling

Let's say you're going on a well-deserved cruise, and you want to look your best. So you run to your favorite store, buy a piece of luggage, a couple of great outfits, evening attire and shoes - what wardrobe is complete without them - to die for. All together you spend $1,000 - why not, your worth it, and, besides, everything was on sale. Let's assume you place this on a charge card with 18% interest. If you make the minimum payment of $20 each month, it will take you over 8 years to pay for these items. The interest you pay will be around $1,000. Do you still think this is a sale?

For those who believe clothing is frivilous, substitue the luggage and clothing in this example for your usual purchases- tools, dinner at a restaurants, gasoline. Any way you picture it, 8 years and double the price is mind blowing.

Minimum payments are the least amount a credit card company will accept. Pay as much as you are able.

Pay Your Bills On Time - A Credit Strategy

Property Management — Fri, 11 Apr 2008 18:57:02 -0500

Pay Your Bills On Time, Every Month

This sounds so elementary, but you'd be surprised how many people miss this point. I know of someone who paid his credit card bills quarterly. Since they were paid in full, he believed this was acceptable. Be sure to pay at least the minimum payment due on all your debts each and every month.

Photo courtesy of BigPhoto.com

SONYMA - A Great Tool For First Time Homebuyers

Property Management — Tue, 08 Apr 2008 16:49:04 -0500

The State of New York Mortgage Ageny (SONYMA) loan program is a great tool for first time homebuyers. It allows for a low down payment (3%) and offers closing cost assistance. SONYMA has strict guidelines that leave little room for exceptions. A qualified loan office can determine your eligiblity and navigate you through the paper-intensive process. Below is basic information to get you started:

- The home must be located in New York State.

- You must live in the home you purchase (owner occupied).

- Closing Cost Assistance of $5,000 or 5% of the loan amount (whichever is greater) is available. The closing cost assistance loan (CCAL) is at zero percent interest and does not require monthly payments. CCAL will be forgiven after you live in the home for 10 years. If you live in the home less than 10 years, all or a portion of the CCAL loan may be required to be repaid. Ask your loan officer for additional information.

- There are income and purchase price limits. The links here are for the Mid-Hudson Valley. These limits can be waived if you purchase in a target area.

- You can purchase up to a 4-unit home

- The interest rates are relatively low, rates are set quarterly. 30 year and 40 year pricing is available.

- A lock-in fee equal to 1% of your loan amount is collected at application.

Take a look at SONYMA's Frequently Asked Questions for more basic guideline information.

Property Perspectives Podcasts

Property Management — Mon, 12 Feb 2007 15:51:24 -0600

The Poughkeepsie Journal has an ongoing real estate podcast series. Though the focus is on the Hudson Valley, the topics are relevant to our industry. The topics include the basics: tips for first-time homebuyers, mortgage basics and home inspections. Also included are great non-traditional topics such as staging and negotiating.

I have not had the opportunity to listen to the podcasts. A realtor-friend brought them to my attetion. She has enjoyed them and recommends them highly.

Use this link to view the information on the podcasts. If you listen, I'd like to hear your opinion.

Closing Costs

Property Management — Wed, 31 Jan 2007 17:10:31 -0600

Many potential homebuyers diligently save for thier new home, only to come up short at the closing table. A down payment is only part of the required funds. What else, do you ask, is required? It's those pesky closing fees. of course. The following are some fees that may be included in closing costs. This and additional information can be found on the HUD web page.

Loan Discount: Also often called "points" or "discount points," a loan discount is a one-time charge imposed by the lender or broker to lower the rate at which the lender or broker would otherwise offer the loan to you. Each "point" is equal to one percent of the mortgage amount. For example, if a lender charges two points on a $80,000 loan this amounts to a charge of $1,600.

Appraisal Fee: This charge pays for an appraisal report made by an appraiser. It is usually charged to the buyer.

Items Required by Lender to Be Paid in Advance: You may be required to prepay certain items at the time of settlement, such as accrued interest, mortgage insurance premiums and hazard insurance premiums.

Interest: Lenders usually require borrowers to pay the interest that accrues from the date of settlement to the first monthly payment.

Hazard Insurance Premium: Hazard insurance protects you and the lender against loss due to fire, windstorm, and natural hazards. Lenders often require the borrower to bring to the settlement a paid-up first year's policy or to pay for the first year's premium at settlement.

Flood Insurance: This is required if you home is located in a designated flood zone.

Escrow Account Deposits: The payment of taxes and/or insurance and other items that must be made at settlement to set up an escrow account.

Title Charges: Title charges may cover a variety of services performed by title companies and others.

Abstract of Title Search, Title Examination, Title Insurance Binder: The charges cover the costs of the title search and examination.

Attorney's Fees: You may be required to pay for legal services provided to the lender, such as an examination of the title binder. Occasionally, the seller will agree in the agreement of sale to pay part of this fee.

The Cost of Commuting

Property Management — Sun, 28 Jan 2007 22:09:02 -0600

In the past several years, the Hudson Valley of New York has seen a steady influx of new residents. Most are from the counties and boroughs south, including Westchester, Manhattan and the Bronx. People are drawn to the area for several reasons, including hopes of a better quality of life, lower property taxes and inexpensive housing. In most cases, the move comes with a downside - an increased commute to work.

According to an article today in the Times Herald Record, "Our region has the second-highest percentage of workers in the country - 10 percent - who travel more than 90 minutes to their jobs. Only Staten Island, at 11.8 percent, beats us." One gentleman stated that due to his work schedule, he did not meet his new neighbors for 6 months.

Several questions came to mind after reading the article: What length of a commute is rational? Would I move my family 90 minutes away from what I consider reasonable employment/salaries? What is "inexpensive" housing? What other areas in our country are facing a similar migration?

Tax Lien Certificates - Investment Opportunity?

Property Management — Fri, 26 Jan 2007 13:38:39 -0600

I am working with an investor who wants to invest in tax lien certificates. He plans to start in his home state, NY, and eventually buy them in all states where he owns property. There are 62 counties in New York State. Many of them use a private firm to handle the tax lien sales and auctions. One of my local counties offer a link from their website to the Rogue Real Estate Investor Collection. Are any of you investing in tax lien certificates? Do you know of someone who has tried? Any success stories? Pitballs to avoid? I'd appreciate tips on the tax lien certificate process (for all states) and the Rogue Real Estate Investor Collection.

How Important Is your Credit History?

Property Management — Thu, 18 Jan 2007 11:48:50 -0600

Your credit history can greatly impact your life. It can influence your ability to obtain a mortgage loan and terms of that loan, along with many other aspects of your financial history. Many employers now include credit history as a qualifying tool during the hiring process.

Your credit history is the gateway to your dream home.

One of the initial questions asked by a mortgage professional is, "How's your credit?" Be prepared by knowing what's included in your credit report. Thanks to the Free File Disclosure Rule of the Fair and Accurate Credit Transaction Act (know as the FACT Act), you're entitled to a free copy of your credit report once every 12 months. Visit http://www.annualcreditreport.%20com / , the official website to help you obtain your free credit report. The free report include the same details that are viewed by mortgage professionals and employers. You can also receive your credit scores, though there's a fee associated with this aspect of the report. Credit scores estimate the risk a company incurs by lending money or providing a service to a specific individual. Its basic objective is to determine the likelihood that the person will make payments on time in the next two or three years. The higher the score, the less risk the person represents.