Real Estate News » Buying

Common Questions to Getting That Home Loan

Patrick Warholic — Fri, 05 Oct 2007 04:04:00 +0000

What steps can I take to improve my chances of getting a loan?

Today many lenders are more flexible and allow a greater percentage of monthly income to go toward mortgage payments. But they are more stringent on credit card balances. Lenders often count 5% of the balance as a borrower’s monthly payment, instead of the credit card’s minimum payment. If you are planning to pay off some debts before you apply for a loan, consider the ones with the largest monthly payment. Many lenders, for example, prefer to have a car loan paid off, because borrowers are not likely to go out and buy a new car right away. On the other hand, if credit cards are paid off, a borrower might start charging again.

Should I wait until interest rates drop?

Time is money. Can you afford to wait? Of course home buyers want to buy when interest rates are at their lowest. When interest rates are at near-record lows, potential buyers or homeowners looking to move up are asking themselves if the time is right to act. But no one can predict with certainty where rates are headed at any particular time. Waiting for a bottoming out may instead provide time for rates to rise.

What’s the debt-to-income ratio lenders use to qualify borrowers?

Many lenders use two ratios when they decide whether to approve a mortgage. If, for example, the ratios are 28/36, the “front” ratio of 28% means the lender will allow a mortgage payment (including principal, interest, taxes and insurance) of up to 28% of the borrower’s monthly pre-tax income. The “back” ratio of 36% means all loan and credit payments cannot exceed 36% of the borrower’s monthly income.

For more information visit the California Home Network, your:
Folsom Luxury Homes and Land Specialist

Our motto is to always “Do the Right Thing”, starting with providing premier executive real estate service to buyers and sellers of Folsom, Granite Bay, and El Dorado Hills luxury homes and land.

For more information from California Home Network visit Patrick Warholic, The Internet Home Marketing Specialist for free, no registration required, MLS home and property searches with amazing home search results at your fingertips, along with its ease of use, no registration required advanced home search features that will simply astound you. You can even search by using the new Google Map search, and even do a home search for energy saving features. Are you looking for great real estate deals, short sales, or bank owned properties? With this powerful home search engine that information is right at your fingertips now.

California Home Network also provides free real estate reports, information for sellers, information for buyers, and find out exactly what your home is worth with a free home valuation, with current up-to-date market information provided for you.

Learn how how you can be mortgage free in 8 to 11 years without re-financing. Ask for your free House Payment Free analysis.

Contact Patrick Warholic, Realtor, CCRA, SRES, ASP, and e-PRO certified.

Happy Buyers consider All the Angles

Patrick Warholic — Tue, 03 Jul 2007 03:41:00 +0000

Real estate professionals see it all the time.

Jittery buyers bolt before they sign on the dotted line. Others walk away after an offer is made. The National Association of Realtors reports more than 10 percent of real estate transactions fail and buyer’s remorse is often a factor when deals fall through. For some, it boils down to money. most buyers often “feel guilty about wanting things” and they feel guilty about spending the money on things like a house, also it may be money they really don’t have or more than they spent before. The consequences of buyer’s remorse aren’t just emotional. When buyers walk away from transactions after a formal offer is made, they may lose earnest monies or expose themselves to lawsuits.

Homeowners can avoid second-guessing themselves if they are diligent and patient in their search for housing.

1. Don’t jump at the first thing, your Realtor will advise you to look at the comparatives.

2. Your agent might also counsel you to consider not only aesthetics and financing, but also length of commute, tolerance for yard work and area amenities.

Other tips:

1. Hire an interior designer to help you adapt your sense of style to your new space.

2. Jot down impressions of homes you may consider buying, making a list of pros and cons.

3. Take the initiative to meet your new neighbors. Offer a welcome gift in
reverse such as a bouquet of flowers from your new garden.

4. Say the proper goodbye to your former home. Remind yourself what was good about living there — and why you’re moving.

5. Get to know the neighborhood. Visit the shops and stores nearest your new home, and say hello to the owners.

Your Realtor will have other ideas to help you consider All the Angles.
Folsom Luxury Homes and Land Specialist

Our motto is to always “Do the Right Thing”, starting with providing premier executive real estate service to buyers and sellers of Folsom, Granite Bay, and El Dorado Hills luxury homes and land. Find your dream home today.

For more information from California Home Network visit Patrick Warholic, The Internet Home Marketing Specialist for free, no registration required, MLS home and property searches with amazing home search results at your fingertips, along with its ease of use, no registration required advanced home search features that will simply amaze you. You can even perform a home search by using the new Google Map home search feature, with advanced community search parameters, and even do an advanced home search for energy saving features too. Maybe you are searching for a new home investment property or a great deal on a second home. Well, now you can find great real estate deals with REO bank owned properties and short sale homes listed in the MLS directory. This real estate information is right at your fingertips, and once again, no registration is required.

Learn how how you can be mortgage free in 8 to 11 years without re-financing. Ask for your free House Payment Free analysis.

Contact Patrick Warholic, Realtor, CCRA, SRES, ASP, and e-PRO certified.

Downsizing doesn’t have to be a Downer

Patrick Warholic — Tue, 03 Jul 2007 03:37:00 +0000

Many people today are looking to simplify their lifestyle by moving to a smaller, newer home.

Here are some tips on how to make the downsizing process go smoothly:

Buy First. If possible, buy your new home before you sell the old one. It’s better to buy what you’re going to go to first so you can see what kind of space you’re physically getting into. That way, when it’s time to sell your place, there isn’t so much pressure — you have more freedom. If you have the equity, it works well. If you don’t, it’s a harder decision to make.

Take Your Time. Family members have a tendency to pressure downsizers to move more quickly than they want to, Sometimes the process can take a couple of years. Make sure you really like the place you’re moving to, and know what you’re getting yourself into.

Move-In-Ready Properties. If time is short, concentrate in looking for a development that has an inventory of finished units, as well as a furnished model home — that will give you a clear picture of what your home will look like.

Ask Around. Find a broker who is experienced in downsizing transactions by talking to people who have recently been through the process. A Good Realtor will ask you questions about your lifestyle; yard work, stairs, attached garage, community involvement.

Folsom Luxury Homes and Land Specialist

For more information from California Home Network visit Patrick Warholic, The Internet Home Marketing Specialist for free, no registration required, MLS home and property searches with amazing home search results at your fingertips, along with its ease of use, no registration required advanced home search features that will simply amaze you. You can even perform a home search by using the new Google Map home search feature, with advanced community search parameters, and even do an advanced home search for energy saving features too. Maybe you are searching for a new home investment property or a great deal on a second home. Well, now you can find great real estate deals with REO bank owned properties and short sale homes listed in the MLS directory. This real estate information is right at your fingertips, and once again, no registration is required.

Learn how how you can be mortgage free in 8 to 11 years without re-financing. Ask for your free House Payment Free analysis.

Contact Patrick Warholic, Realtor, CCRA, SRES, ASP, and e-PRO certified.

Real-Estate Investors Should Beware of Scams

Patrick Warholic — Sun, 06 May 2007 04:54:00 +0000

Make a million dollars in real estate now! No money down! No-risk offer!

Maybe you’ve heard these come-ons, or similar ones, offering you the chance to learn how to become a real estate investing millionaire? One primary reason that real-estate investments attract newcomers is that debt is an accepted tool for doing business. Thus, you can get into the business with no money down. These high-volume, low-brow pitches are common from promoters of real estate investing seminars.

The first part usually is a goal-setting exercise.

The middle part gives some information about what could be done but not how to do it.

At the end, it all leads to having to take more expensive — $3,000 to $5,000 — seminars and boot camps to receive the actual hands-on experience you need, suggesting that if you didn’t take it, you would fail.

But not all real-estate investing seminars are a bad bet. Indeed, many will help you learn about the business of investing and can be a worthwhile place to start, experts say. How can you tell the good from the bad?

Savvy would-be investors should take their time developing their knowledge of the real estate industry and shouldn’t look to get rich overnight. The number of seminars offered to would-be real estate investors has exploded along with the booming real estate market. Public seminars may be fine for an introduction to investing, but clearly the business of real estate investing can’t be learned in just a few days. The skills it takes to be successful in real estate take years to accumulate, such as the skills of a Professional Realtor.

A hint from the Federal Trade Commission: 1. Take your time. 2. Don’t be rushed into buying anything at a seminar. 3. Avoid high-pressure sales pitches that require you to buy now or risk losing out on the opportunity.

Remember, solid opportunities are not sold through nerve-racking tactics.

Our motto is to always “Do the Right Thing”, starting with providing premier executive real estate service to buyers and sellers of Folsom, Granite Bay, and El Dorado Hills luxury homes and land.

For more information from California Home Network visit Patrick Warholic, The Home Marketing Specialist, and for free, no registration required, MLS home and property searches with amazing home search results at your fingertips, along with its ease of use, no registration required advanced home search features that will simply amaze you. You can even perform a home search by using the new Google Map home search feature, with advanced community search parameters, and even do an advanced home search for energy saving features too. Maybe you are searching for a new home investment property or a great deal on a second home. Well, now you can find great real estate deals with REO bank owned properties and short sale homes listed in the MLS directory. This real estate information is right at your fingertips, and once again, no registration is required.

Learn how how you can be mortgage free in 8 to 11 years without re-financing. Ask for your free House Payment Free analysis.

Contact Patrick Warholic, Realtor, CCRA, SRES, ASP, and e-PRO certified.

Second Home Strategies

Patrick Warholic — Sat, 05 May 2007 05:06:00 +0000

While most people buy second homes using conventional financing, some are taking different approaches. Here are a few options to consider when buying a second home:

Pull equity out of a primary residence to buy a second home. This has become a popular investment diversification strategy in recent years.

Rent your primary home and purchase your second home. This strategy might work well if you are planning to retire to the second home one day.

Buy a vacation home and rent it out when you’re not using it, to help pay for it.

A growing number of people around the West are considering fractional ownership, a fairly new option in which owners purchase fractional shares in a vacation home and use them for a certain number of weeks per year. While it may sound similar to most time-shares, in a fractional ownership program you own a portion of the vacation property and get a deed that appreciates for your share.

Folsom Luxury Homes and Land Specialist

For more information from California Home Network visit Patrick Warholic, The Home Marketing Specialist, and for free, no registration required, MLS home and property searches with amazing home search results at your fingertips, along with its ease of use, no registration required advanced home search features that will simply amaze you. You can even perform a home search by using the new Google Map home search feature, with advanced community search parameters, and even do an advanced home search for energy saving features too. Maybe you are searching for a new home investment property or a great deal on a second home. Well, now you can find great real estate deals with REO bank owned properties and/or short sale homes listed in the MLS directory. This real estate information is right at your fingertips, and once again, no registration is required.

Learn how how you can be mortgage free in 8 to 11 years without re-financing. Ask for your free House Payment Free analysis.

Contact Patrick Warholic, Realtor, CCRA, SRES, ASP, and e-PRO certified.

Tips for House Hunting With Resale in Mind

Patrick Warholic — Tue, 06 Mar 2007 01:39:00 +0000

When looking for a home you probably have a checklist of characteristics that are important to you. However, if you know you are going to be a short-term homeowner here are some special considerations to keep in mind for good resale potential:

House Size – Don’t buy the largest model in the neighborhood. If most of the houses near yours are smaller than your house, they can act as a drag on appreciation. On the other hand, if you buy a small or medium house for the neighborhood, the larger homes can pull up your value.

Prime Neighborhoods – Buying what you need in a more prestigious neighborhood may provide more financial reward that getting what you want in a less desirable neighborhood.

Public Transportation – Even though you many not use them, consider accessibility to public transportation, as well as distance to a major airport.

The Commute – Check the morning and afternoon commute time by driving the major commute routes and to schools and shopping areas.

Schools – Log on to the local school districts website and check out how the schools in the area rank, even if you don’t have school-aged children.

Bedrooms and Bathrooms – three and four bedroom houses are the most popular among home buyers, so if you can stick in that range you will have more potential buyers when it comes time to resell. There should always be at least two bathrooms in a house, or at least the potential
to insert a second one.

Folsom Luxury Homes and Land Specialist

Learn how how you can be mortgage free in 8 to 11 years without re-financing. Ask for your free House Payment Free analysis.

Contact Patrick Warholic, Realtor, CCRA, SRES, ASP, and e-PRO certified.

It’s a Great Time to Buy a Home

Patrick Warholic — Fri, 05 Jan 2007 09:42:00 +0000

Low rates and extraordinary Inventory have created perfect conditions for home buyers.
Take a moment to consider these facts:
You’ve never had more homes to choose from…

There are currently 3.75 million homes for sale. Inventories in recent months have been at record levels, offering consumers the greatest choice in decades.
However, inventory levels are falling, and the selection of homes will become limited once again.
Former Federal Reserve Chair Alan Greenspan recently said that housing prospects are looking up. “Most of the negatives in housing are probably behind us. The fourth quarter should be reasonably good, certainly better than the third quarter.” According to industry estimates, 2006 will be the third-best year on record for home sales.

Interest rates haven’t been this low for nearly 40 years

At 6.4 percent, the average 30-year fixed rate mortgage rate remains near 40-year lows. This is more than an entire percentage point below 2000 levels. For a $250,000 loan, a drop from 7.5 percent to 6.5 percent means an annual savings of $2,000.

Real Estate is a great investment

The average home value increased by 88 percent over the last ten years. In the decade to come, the number of US households is expected to increase by 15 percent, which means housing will stay in high demand.

While conditions for buyers are perfect now, that is likely to change next year as sales pick up, prices gain traction, and conditions improve for sellers. In today’s real estate market, the best time to buy is now.

Folsom Luxury Homes and Land Specialist

Our motto is to always “Do the Right Thing”, starting with providing premier executive real estate service to buyers and sellers of Folsom, Granite Bay, and El Dorado Hills luxury homes and land.

For more information from California Home Network visit Patrick Warholic, The Home Marketing Specialist, and for free, no registration required, MLS home and property searches with amazing home search results at your fingertips, along with its ease of use, no registration required advanced home search features that will simply amaze you. You can even perform a home search by using the new Google Map home search feature, with advanced community search parameters, and even do an advanced home search for energy saving features too. Maybe you are searching for a new home investment property or a great deal on a second home. Well, now you can find great real estate investment deals with REO bank owned properties and short sale homes listed in the MLS directory. This real estate information is right at your fingertips, and once again, no registration is required.

Learn how how you can be mortgage free in 8 to 11 years without re-financing. Ask for your free House Payment Free analysis.

Contact Patrick Warholic, Realtor, CCRA, SRES, ASP, and e-PRO certified.