by Alabama Refinance Expert on October 14, 2009
Now that home prices have leveled in many parts of the country, many first time homebuyers are looking for creative ways to move into the home of their dreams. FHA, the Federal Housing Administration, is making it easier for many to purchase with low down payment requirements.The enabled many to get the ,000 tax credit currently in place for first time home buyers.How does FHA make home buying so attractive?
For starters, you can finance a new home with very little down. 3.5% of the purchase price to be exact.WIth a FHA loan, you can get into your new home with just 3.5% down compared to at least 10% with a conventional loan.5% down, and it doesn’t even have to be your own money.The money can be given to home buyers by a family member. Conventional loans for years have been the staple for purchasing new homes.First time homebuyers took advantage of 100% financing and many utilized 80/20 loans. Now, expect to pay anywhere from 10 to 20 percent down to get a conventional loan, and above 80% is going to require Private Mortgage Insurance.
FHA also allows first time home buyers the opportunity to purchase when conventional lenders issue a denial. Because FHA loans are insured by the Federal Government, the loans are a bit more leniant on credit standards.Most conventional lenders are going to require a 680 middle credit score, in addition to great credit.FHA purchases will require a minimum credit score of 620.Most lenders will require a 620 Fico score for FHA, although a select few will allow scores down to 580.
FHA is a very strong option for purchases. Although 3.3.5% down payment is required, however, 100% of this down payment can be gifted to the home buyer. What this means is that you can have your down payment gifted from a family member, and walk into your home without having to put any of your own money down.
Up to 6% of the purchase price can be in the form a seller concession. Conventional loans limit the seller credit to 3%, while you can go as high as 6% through FHA.This money can be used to cover lender fees, points, and any other closing costs.A great way to take advantage of the seller concession is through the 2-1 buydown.By using this seller concession, buyers can get an interest rate 2% below the normal rate.
You can also expect the appraisal process to be a little smoother with FHA compared to a conventional appraisal.FHA loans do not require that the appraisal be ordered through the newly formed home valuation code of conduct (HVCC) which has slowed the process down significantly.
FHA has been around since 1934, and now represents almost 50% of the purchase market.FHA is growing in popularity among first time home buyers. To find out more about how to qualify for an FHA home loan, visit http://www.timmarose.com
by Alabama Refinance Expert on October 6, 2009
Once your bid for your dream property has been accepted, there is still so much to do before you can call the house trully yours. {In the following article, an experienced Toronto realtor will point out the most important steps of the process.}
Once the offer has been accepted, your legal adviser should explain to you your liabilities under the contract. Your lawyer should help you to understand all the expenses connected to the closing procedures, including Land Transfer Tax, disbursements and legal fees.
UTILITIES
Letters are sent by your lawyer to all municipal or regional utility departments to validate that there are no arrears or outstanding charges, such as gas, water or hydro expenses. The utility departments will also be informed if the equipment on the property is rented or owned, and also about the planned closing date, the name of the new owner and the vendor’s attorney. Details about the billing type and whether the billing is metered, all this is also demanded by these letters.
TAXES
A Tax Certificate is asked by your attorney to confirm the amount of the current year’s taxes and to inquire as to arrears and outstanding charges for taxes for the current year and any previous years.
BUILDING & ZONING
A letter is sent by your attorney to the Building and Zoning Department together with a copy of the survey for the property to disclose the full details of zoning by-laws and restrictions relating to the distance from the street and side and rear lines, type of construction, lot areas and building areas, lot frontage and depth requirements and permitted uses.
TITLE & EXECUTION SEARCH
A Search of title to the property is commenced in the appropriate division of the Land Registry Office to establish whether or not the seller is the owner of the property, whether or not he has the right to convey the property, and that the property is not subject to any encumbrances, encroachments, easements, liens, agreements or mortgages that were not disclosed in the Agreement or Purchase and Sale. It is also necessary to make sure there are no executions against the vendor or previous property owners that would affect your title. This is managed by an execution search in the appropriate Sheriff’s Office.
FINANCING
In the meantime, while your attorney is busy doing all the initial searches, you should arrange all the necessary financing details. You should have decided, before signing the Agreement of Purchase and Sale, the amount of financing you will qualify for and the amount you will require to complete the business. There are a number of expenses that you may not be aware of on the day of closing that relate to mortgage financing. Again, it is a good idea to ask your attorney about these fees, when you get the Mortgage Commitment Letter from the financial institution that you have chosen.
BEFORE THE DAY OF CLOSING
You will also need a certified cheque to confirm the balance of closing funds to your attorney. Bring this with you when you come to sign all the documents needed a few days before the closing.
CLOSING DAY
Your solicitor will agree to meet with the vendor’s attorney at a mutually convenient time at the appropriate Land Registry Office where he will sub-search title and complete final execution searches. Documents, keys and cheques will be exchanged and your attorney will supervise the registration of all necessary documents. Once the documents have been registered the vendor’s attorney may release the funds to his clients and your attorney may release the keys to you.
AFTER CLOSING
After closing your legal adviser will prepare a reporting letter to you certifying your title and explaining all details of the transaction. When you move in to your new home check to see that all items in the Agreement of Purchase and Sale indicated as included in the purchase price are left on the property by the seller. In case you find out anything is missing, get in touch with your legal adviser as soon as possible.
by Alabama Refinance Expert on September 28, 2009
Thinking about buying a new home? Here’s an opportunity to save more money. Everyone likes to compare the best value when shopping, and take advantage of special offers in order to save money, why not do the same when you buy a new home?
Home builders may offer what is called a broker co-op, which is a sales commission offered to a real estate agent as an incentive to show clients their new homes. The sales commission may range from 3% to 4% of the sales price.
Many real estate agents are now offering to share their commission with their home buyer clients. Before making an offer to buy a new home, a buyer can make an agreement with an agent to represent them, in exchange for a share of the commission paid by the home builder.
The amount of money that a home buyer can save, depends on the share of the real estate commission, which is negotiable with the agent, and the sales price of the home. For example, buying a new home with a sales price of $500,000, with a 1 1/2% share, would save the buyer $7,500.
The buyer can receive a check at the close of escrow, or the money may be applied to the down payment or closing costs, providing there are no restrictions from the mortgage lender, or state laws that regulate real estate transactions.
Most new home builders don’t usually advertise a broker co-op offering, so the buyer, or the buyer’s agent would have to ask. The home builder may have a requirement for the buyer’s agent to be with them when visiting the office, or signing paperwork to buy a new home, so be sure to clarify the rules. A little time spent on research could mean a lot of money saved on your real estate transaction.
Information on Ditech home loans, refinance loans, also, information on Brookfield new homes in San Diego
by Alabama Refinance Expert on September 27, 2009
Real estate investing probably makes you think of a number of things. You might immediately leap to real estate investing being real estate portfolios and real estate retirement plans or you may think instead of short sales, bulk reo investing and virtual real estate investing. You likely also are wondering how these things factor into real estate investors’ roles in the current economy.
You will need to know a lot about real estate investing. The best way to optimize your real estate investing education is to know the basics ahead of time. You will get the most out of anything to do with short sales, bulk reo sales, virtual real estate and just improving real estate investor abilities by knowing some real estate investing basics. Check out these three real estate investing tenets that many experts do not fully know:
1. You always will get a positive result from investing in real estate investing education. You can create thousands of dollars in potential wealth with each real estate deal. Knowing how to get that wealth is the key to success. Learning about real estate increases your odds of success when you do a real estate deal. Small investments yield big results when you invest in learning and then implement what you learn.
2. You have the ability to succeed in real estate investing in any economy. Many people think that you can only succeed in real estate when the economy is booming. In reality, a bad economic situation is not bad for real estate investors. You can often buy properties at deep discounts. Additionally, you may find deals that would not exist in a booming economy. Poor economies can have the tide turned based on real estate investing. When the economy is not thriving, short sales, bulk reo sales and virtual real estate can all thrive. You will have the option of saving yourself and possibly others from serious financial difficulties if you know about these types of deals.
3. You do not need lots of your own cash to be a successful real estate investor. You can be a success in real estate investing no matter how much money you have on your own. There are lots of deals that you can use other people’s money to do. If you appear to be a solid investment you may be able to use a private lender’s money. A person who is a solid investment knows as much as possible about real estate investing. Then you will represent a good investment to other people who have money for real estate investing but do not know how to use it.
Real estate investing is a great way to generate wealth. You will have the ability to create income in any economy. By using a base of knowledge of real estate investing, short sales, bulk reo sales and virtual real estate you can create success for yourself. Knowing real estate investing basics will help you succeed as a real estate investor.
by Alabama Mortgage Expert on July 27, 2009
For many Veterans who currently have a VA loan and a poor credit score, whether or not they can participate in the Alabama VA streamline refinance is not really all that clear cut. According to VA streamline guidelines from VA, as long as they have a good mortgage payment history, they can still particpate in the VA streamline program no matter what their credit score.
But…
Many lenders across Alabama now require a minimum credit score, which can be a factor – possibly a big factor. You see, VA doesn’t actually lend you the money, they only insure your loan. So if a lender has a credit score requirement for the VA streamline refinance program, then it will apply.
But there is some good news.
Because the requirements as to whether or not there is a minimum credit score requirement on a VA loan is an individual lender decision and requirement, if one lender has the minimum credit score requirement – it doesn’t mean that they all do.
So if you are an Alabama Veteran who has a poor credit score but a good mortgage payment history, be sure to shop around for Alabama lenders who can loan money under the VA streamline program guidelines and don’t require a minimum credit score.
You might be surprised at how easy it is to find one!
