Crayon Post: Interest Rates Matter
August 20th, 2009
Categories:Home Buyer Education
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Top 10 Myths Shared by First Time Homebuyers
August 18th, 2009
Categories:Home Buyer Education
This morning I came across an article listing the top 10 myths shared by first time homebuyers. While I don’t believe all of these are as common as they would have us believe, these are some excellent and very valuable myths to discuss.
Here are the Top 10 Myths:
- All real estate agents are the same
- The agent on the for sale sign will look out for my interest
- I can find all properties for sale on my own
- If i just wait long enough, I’ll find the perfect home
- I’ll improve the odds of finding the house i want if I work with more than one agent
- Buying a house is as simple as agreeing on a price and signing a few papers
- Foreclosures are the best deal
- Getting a mortgage should be quick and easy
- All mortgages are essentially the same
- If something appears on the inspection report the seller has to fix it
Myth #1: All Real Estate Agents Are the Same
I actually feel pretty bad for my friends and family, because they have certainly heard me beat this topic in the ground. I’m very passionate when it comes to changing the standards and expectations for Realtors. Read the rest of this entry »
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Get 22% off Your Next Home! (seriously)
August 3rd, 2009
Categories:Real Estate News
iMortgage has recently released a new loan program for homebuyers. It allows homebuyers to get 22% of their loan for free and do 1% down. FHA, Conventional, VA or USDA it doesn’t matter, this program will work. However, like most good deals the opportunity might not last long!
The program has one small catch, but if you can find a way around it this is an excellent way jump into a home with very little down!
Here’s a quick summary:
- The buyer still needs to come up with 3% down, however 2% of that can be “gifted” from a family member (etc)
- The 22% from ADOH never has to be paid back if the buyer stays in the home for 5-15 years! (depending on the amount) and if they pay it back, its a zero interest loan!
- This applies to bank owned properties only
- The home must sell for 1% below market appraised value (the catch)
Here is what i have so far Read the rest of this entry »
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So Many Types of Loans, How Does One Choose?
July 22nd, 2009
Categories:Home Buyer Education
When talking to a loan officer, you will normally hear about the traditional types of loans. In this market you might only hear about FHA loans because they are becoming so popular and universal.
However, a good loan officer should be able to give you additional financing options to help you make the best decision for your specific needs, wants and goals.
Here is a list of the most common financing techniques:
- Straight Loan
- Interest Only Mortgage
- Balloon Payment Loan
- Amortized Loan
- Adjustable Rate Mortgage
- Growing Equity Mortgage
- Reverse Annuity Mortgage
Straight Loan (aka Term Loan)
With a straight loan, the borrower makes periodic payments on the interest until the end of the term. At the end of the term, the borrow then pays the principal (loan) amount in full.
A straight loan used to be the only type of loan available. However nowadays this type of loan is most commonly seen in Read the rest of this entry »
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Big 3 – Loan Programs
July 8th, 2009
Categories:Home Buyer Education
In the world of lending there are countless factors involved in a securing a loan for a home purchase. Other articles will delve deeper into the intricacies involved with obtaining a loan. This article will give you an overview of the three main loan programs available. When you begin researching loan programs, be sure to contact a mortgage professional for more information and the latest market updates and changes.
FHA-Insured Loans
An FHA loan is a loan insured by the Federal Housing Administration. The FHA was created in 1934 to increase home construction and reduce unemployment through loan insurance, which essentially lowers the risk to the lenders creating the loan.
During tough real estate times, FHA loans step in the spotlight and become more important as they allow homeowners to Read the rest of this entry »
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Fact or Fiction: 1% Down FHA is Back?
July 6th, 2009
Categories:Real Estate News
Believe it or not, it appears the 1% FHA Loans are coming back. Well, more like crawling back.
Last Friday I received a completely random phone call from Robert Spector with The Lending Company. He ran across an post I wrote about 9 months earlier when a private investor offered a 1% down program. The program was immensely successful. However, it didn’t stay on the market long because the investor only had a limited amount of funds to support the program.
It appears The Lending Company is the first lender to have access to a new 1% down program offered by the H.O.M.E. Gift Program. While other lenders say they have similar programs coming, Read the rest of this entry »
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3 Myths vs Realities in the Home Valuation Code of Conduct
July 2nd, 2009
Categories:Real Estate News
The Home Valuation Code of Conduct (HVCC) took affect on May 1st, 2009. Since its implementation lenders, Realtors and appraisers have been making a lot of noise over the new rules and are starting to petition its reversal.
The Appraisal Institute recently published an article attempting to clear up the misunderstandings surrounding the HVCC. They do this by listing the myth they are attempting to bust and then the “Reality” as they see it.
Lets look at some of their explanations in closer detail. Here is the link to download the Myths and Realities pdf.
Here are 3 of the myths they chose to “bust”:
- HVCC Requires Lenders to Use Appraisal Management Companies
- Loan Officers are Prohibited from Communicating with Appraisers
- Licensing of an Appraiser Ensures His or Her Competency
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