Real Estate Information

Recently, a homeowner had a burglary and part of the insurance claim was denied because they didn't have proof of purchase or a current inventory of their personal belongings.  This is something that could happen to anyone.  Even if you had an inventory but it was several years old, it could cost you money.

Some homeowners who have placed an insurance claim for losses say that they realized something was missing months after they had filed.  The inventory can actually serve as a guide to make sure you get compensated for all of your loss.

The best proof of purchase is to have a receipt for the item.  The reality of the situation is that most people don't keep receipts.  The next best item is to have an inventory and the more details like pictures, the better.

Contact me for a Home Inventory.  Once you get it completed, put it somewhere safe so you'll have it when you need it.  Saving it in the "Cloud" like  Microsoft Office Live is convenient because you can acess it from any computer with Internet access.

Besides the obvious Federal Income Tax deadline which is April 18th this year, the deadline for individuals who can qualify for the Homebuyers Tax Credit is quickly approaching - April 30, 2011.

The extension was granted for members of the military, Intelligence and Foreign Service who have served outside of the U.S. for at least 90 days between January 1, 2009 and May 1, 2010.  The sales contract must be signed by all parties by April 30, 2011 and closed by June 30, 2011.

Qualifying taxpayers may be eligible for either the first-time credit of $8,000 or the current homeowner credit of $6,500.  To get additional information from IRS.gov, click here.

This is a wonderful opportunity for a person to have a home of their own, to raise their family, share with their friends and feel safe and secure.  We're in a market that is ripe with advantages for buyers who can afford it.  Prices have come down considerably in the last two to three years.  Interest rates are at an almost all-time low but are expected to rise soon.  The selection of homes is good which allows buyers to find the home that meets their needs.

A qualifying veteran with eligibility could get into a home with no down payment, no closing costs if paid by the seller and the tax credit.  These tax credits are refundable which means that any amount that isn't used to offset tax liability will be refunded to the taxpayer in a check.  You're practically being paid to buy a home.

There probably will never be this combination of advantages available for buyers who qualify.  Don't miss this opportunity.  You owe it to yourself and your family to see that it may actually cost you less to own than to rent and what it will take to get into a home

Since 2004, the maximum VA loan is the same as the maximum FNMA mortgage which is currently $417,000.  Occasionally, a Veteran wants a loan in excess of that amount.  If the Veteran will put a 25% down payment on the excess amount, a lender will loan the other 75%.

Example
Sales Price                                                         $475,000
Maximum VA Loan                                              $417,000
Excess Amount                                                   $ 58,000
25% Required Down Payment on Excess              $ 14,500
Adjusted Loan                                                    $460,500

VA loans are eligible for veterans of the military with a certificate of eligibility.  A Veteran can get a 100% loan up to the maximum VA loan amount and the seller can pay their closing costs which would allow a Vet to get into a home with no down payment and no closing costs.  The VA Funding Fee can be rolled into the mortgage or paid by the Seller.

When the Vet sells the home, their VA loan is assumable at the existing interest rates but does require qualification of the new buyer.  The benefits would be a possible lower interest rate and lower closing costs.

There's more to finding the "Right" home than driving around looking at houses.  A Residential Finance Consultant can help you make better decisions to help you understand the tax advantages, financing alternatives and investment aspects of homeownership.

If you haven't heard by now, FHA is increasing the annual Mortgage Insurance Premium again by .25% on April 18, 2011.  Payments will be higher even if the interest rates remain the same.

Buyers who are ready to take action can still lock in the lower MIP.  If they have a contract signed by all parties and get a FHA case number issued prior to 4/18/11, the lower MIP rate will apply.

For a $175,000 home at 5% interest, the new MIP will mean the buyer will pay $35 more to live in the same home.  If you don't have to pay more, why would you?

Another possibility is that if interest rates go up .5% by the same effective date, you could pay $88 more to live in the same home.  What would you spend $88.36 on if you don't have to make a larger payment?

April 18th is a Monday this year, so you'll probably need to get your contract completed by the previous Friday at the latest to give your loan officer an opportunity to order the case number.  If you don't have a loan officer, your real estate professional can recommend a reliable one.  Making good decisions will improve your entire homeowner experience and save you money.

What You Need to Look for in a Real Estate Professional

Let's face it -- in today's challenging economy, every penny you can save matters. That's why some homeowners go it alone when it comes time to sell their home. However, according to a recent survey conducted by the Multiple Listing Service MRIS, the vast majority of consumers say working with a real estate professional is the only way to go ... especially in today's market.

In this landmark study examining the home-buying and -selling preferences of consumers in the Mid-Atlantic region, 95% reported that working with a real estate professional is just as important, if not more important, than it was just a few years ago. As a Member of the Top 5 in Real Estate Network®, I know for a fact that this rings true for all areas across the country.

As the MRIS survey reveals, today's consumers recognize this is not the time to complete a real estate transaction on their own, and are placing a stronger emphasis on an agent's professional skills. As such, the following criteria were ranked as the most critical factors in choosing a real estate agent (in order of importance):

• Trustworthiness
• Experience
• Willingness to look out for a client's interest
• Expertise in negotiating contracts
• Responsiveness
• Familiarity with contracts
• Knowledge of the local community

The above requirements are evidence that consumers are seeking more than simple guidance ... they are looking for an expert they can trust to execute a step-by-step process throughout the entire transaction. While most consumers rely on the Internet as the first step in the home-buying and -selling process, a professional, experienced real estate agent -- such as a member of the Top 5 Network -- is critical in helping consumers filter through the copious amounts of information available online in order to make the optimal real estate decision for their specific situation and location.

If you would like more information regarding what to look for in a real estate agent, and specific questions you should ask an agent during an interview, please e-mail me. I encourage you to also forward this to anyone in your social network who may be considering a real estate transaction.

Sincerely,

Eva Loken
Prudential Jack White Vista Eagle River
Office: 907-689-6476
Eva@EvaLoken.com
http://www.evaloken.com/

Mortgage Myths

• "It's impossible to get low down payment loans." - UNTRUE! 
  FHA down payments are only 3.5% and VA is 0%.  In some areas, there may be some 100% USDA loans available.
   
• "It takes perfect credit to get a loan." - UNTRUE! 
  There is a relationship of better rates to better credit but many issues on a credit report may be explained.  The way to know for sure is to speak to a reliable lender.
   
• "If I've had a bankruptcy or foreclosure, I can't qualify." - UNTRUE! 
  Credit history following a short sale or foreclosure is very important and there can be extenuating circumstances.  It only takes a few moments with a reliable lending professional to find out if your individual situation will allow you to qualify.
   
• "Getting pre-approved is expensive." - UNTRUE!
  Usually, the only expense to getting pre-approved is the cost of the credit report which could be around $35.  The advantage is that you will know that you qualify for a particular mortgage amount.
   
• "I should wait to qualify until I find a home." - UNTRUE!  
  The best interest rates are only available for the highest credit scores.  It can take time to qualify for a mortgage especially if there are issues that need to be corrected.  It is to your advantage to start the qualifying process early in your home search.
   
• "All lenders are the same." - UNTRUE!
  Reliable lending professionals will explain the entire process before collecting fees, quote fees up-front, have competitive products, do what is necessary to get the loan approved and close at the locked rate and terms.  Ask for recommendations from recent borrowers.
   
• "Adjustable rate mortgages are more expensive than fixed rate mortgages." - UNTRUE!
  Adjustable rate mortgages can be less expensive than fixed rates if the buyers' circumstances warrant it.  There are many variables and you need to be aware of them before deciding which type of loan to finance your purchase; the ARM may provide the cheapest cost of housing.

Buyers and Sellers need solid information to make good decisions.  The agent who represents you in the sales may be the BEST recommendation for a reliable lender.  The mortgage plays an enormous role in determining the overall cost of housing and you need solid information to make good decisions.

Having trouble viewing this email? Click here to view it as a webpage!

Tips for Rebuilding Your Credit After Foreclosure

Many people have weathered through some tough times over the past few years. But now, as things begin to look a little brighter, it's time to consider starting over the right way and with a plan.

As a member of the Top 5 in Real Estate Network®, I am well versed in credit and lending issues and can offer some great tips and information on taking the steps to once again qualify for a mortgage.

Here are some tips for getting your credit back on track:

Pay your bills on time: The FICO score, the dominant credit score used by lenders, gives the greatest weight to payment history, so make sure you consistently pay your bills on time.

Review your credit report: You're entitled to a free credit report once every 12 months from each of the three national credit bureaus -- Experian, TransUnion and Equifax. You should get a copy and check it for any inaccuracies. To get your free credit report, go to http://www.annualcreditreport.com.

Check your mortgage: You want to be sure that you don't still owe anything on your old mortgage. Sometimes proceeds from a foreclosure sale aren't enough to cover what's owed on the mortgage, which would leave you owing the difference.

Apply for credit: In particular, apply for different varieties of credit. Credit-scoring models value having different types of credit, so apply for everything from a credit card to a car loan but don't apply for too much credit at one time. Too many inquiries on your credit report will look poor.

Don't fall prey: Watch out for credit repair companies that promise to clean up your credit report so you can get a car loan, a home mortgage, insurance, or even a job -- after paying a fee for the service. "The truth is, that no one can remove accurate, negative information from your credit report," according to the Federal Trade Commission. "It’s illegal." Only the passage of time can assure that negative, but accurate, information on your credit report will be removed.

Unfortunately, there are no quick credit fixes; however, with a little education and patience, you can begin to walk the road back to homeownership. If you would like more information on this topic, please contact me. Also, please pass this information along to anyone you feel may benefit from it.

Sincerely,

Eva Loken
Prudential Jack White Vista Eagle River
Office: 907-689-6476
Mobile: 1
Eva@EvaLoken.com
http://www.evaloken.com/

This email was sent by RISMedia, Inc. on behalf of Eva Loken.
If you wish to edit your subscription or unsubscribe, please click here.

Mortgage Loans and Lenders to Avoid

In many cases, the seller and the buyer are actually represented by their real estate agent.  In those situations, there is a fiduciary relationship created that requires the agent put the client's interests above their own.

There is generally no such relationship between buyers and lenders.  Some of the housing crisis issues may have been avoided had the lenders been more concerned for the buyer's best interests.

The following are a few warning signs that should cause a buyer to do much closer investigation:

1. Claims that bad credit is not an issue
2. Prepayment penalty
3. Larger than normal loan charges
4. Rate gouging by brokers - yield-spread premium
5. Loans without escrow accounts for taxes and insurance
6. ARM loans that only go up and not down
7. Initial loan to secure property with plan to replace it later

As a real estate professional, I can recommend a lender who is experienced in your market and has a history of providing good service.  A real estate professional can be a good intermediary between you and the lender.

4 Tips to Avoid Foreclosure Scams
More home owners are falling prey to scams that promise to “stop the foreclosure” and “save your home.”

The Federal Trade Commission has released a report to help borrowers avoid falling victim to such scams, here are a few of its tips:

1. Watch for outlandish claims. "Eliminate your debt!" and "We guarantee to stop the auction" are too good to be true. If it sounds like an easy way out, don’t believe it, the FTC warns.

2. Don't pay up-front costs. Consumer investigator Dale Cardwell warns home owners to beware of any deal that requires you to pay up-front fees. Cardwell says you shouldn’t pay any business or person who promises to modify your loan because only your lender can do that.

3. Beware of those imitating government agencies. Watch out for scammers who may capture logos, names, photos, and Web sites to make it look like they are part of a government agency.

4. Make payments only to your lender, no one else. Never write a check to someone else instead of your lender for your mortgage. Scammers may present an official looking reinstatement package and tell you to pay everything to them. Send payments only to your loan servicer, experts recommend.

Source: “In Saving Home, Steer Clear of Scams,” The Atlanta Journal-Constitution (Feb. 13, 2011)

Really?

Home prices have come down 20, 30, 40% or more in the last three years and mortgage rates are lower than they've been in 50 years and you still haven't bought a home.  Really?

Housing affordability is over 180, an all-time high when 100 is considered good and you're still renting.  Really?  Are you waiting for it to get  to 200?  Do you think prices and rates are going to get lower?  Really? 

You know it's costing you more every month to rent than to own.  Tax savings, appreciation and principal reduction lower the monthly cost of housing and yet you'd rather let your landlord benefit...Really?  Have you heard that the average homeowner has 41 times greater net worth than a renter?  Do you think it's a coincidence?  Really?

And have you heard that most people want a place of their own; a place to raise their family; to share with their friends; to feel safe and secure.  So, you'd rather go home after working hard all day to your landlord's home.  You'd prefer to invite some friends over to your landlord's home for dinner next weekend.  Really?

You haven't checked out whether you can actually take advantage of the best buyer's market ever.  You haven't invested thirty minutes to find out the facts as they apply to you and your situation.  Really?  You're basing a decision on national news, chat rooms and Facebook.  Really?

Every market is different.  Every buyer is unique.  If you want a home; if you have a down payment; if you have good credit, you owe it to yourself and your family to explore the possibilities...but with a real estate professional; someone who can really show you the reasons and really give you options.