The Property Place Dickson Tennessee

Tips for Buying Real Estate

FHA Program Gives Fixer-Uppers a Boost	FHA is allowing buyers to roll the costs of minor repairs on a property into their mortgage. The "limited repair" loan, known as Streamlined K, is a version of the agency's 203(k) renovation loan program. Its goal is to get properties with relatively minor problems into the hands of creditworthy buyers. Streamlined K is part of the U.S. Department of Housing and Urban Development's effort to make FHA relevant after finding its market share crimped by private lenders reaching out to borrowers who years before would have had trouble getting loans at a rate that made sense. The Streamlined K program is designed to overcome the reluctance of many real estate professionals to accept contracts that called for FHA-insured loans because appraisers were requiring sellers to make what they considered to be nit-picking repairs or majors fixes they didn't want to make. A maximum of $35,000 in repair costs can be rolled into the mortgage, up to 110 percent of the appraised value of the property. Repair items eligible under the program are: 1) Repair or replacing roofs, gutters, downspouts, heating and air conditioning systems, plumbing and electrical systems, windows and doors, flooring, septic systems, wells, decks, patios, and porches. 2) Minor remodeling that does not involve structural repairs. 3) Exterior and interior painting. 4) Weatherization, including storm windows and doors, insulation and weather-stripping. 5) New appliances, including microwave ovens, washing machines, and clothes dryers. 6) Accessibility improvements for handicapped people. 7) Lead-based paint stabilization or abatement. 8) Basement remodeling or finishing that does not involve structural changes. 9) Re-siding. 10) Basement waterproofing. Source: Lew Sichelman, United Feature Syndicate (01/30/06) from an article published by Realtor Magazine Online. 10 Questions for Ask Your Lender 1. What are the most popular mortgage loans you make? Why? 2. Which type of mortgage plan do you think would best for us? Why? 3. Are your rates, terms, fees, and closing costs negotiable? 4. Will I have to buy private mortgage insurance? If so how much will it cost and how long will it be required? Note: Private mortgage insurance is usually required if you make less than a 20% downpayment, but most lenders will let you discontinue the policy when you've acquired a certain amount of equity by paying down the loan. 5. Who will service the loan? Your bank or another company? 6. What escrow requirements do you have? 7. How long is your loan lock-in period (the time that the quoted interest rate will be honored)? Will I be able to obtain a lower rate if they drop during this period? 8. How long will the loan approval process take? 9. How long will it take to close the loan? 10. Are there any charges or penalties for prepaying the loan? Source: Realtor Magazine Online, January 2007 What Your Home Inspection Should Cover Siding- Look for dents or buckling Foundations- Look for cracks or water seepage Exterior Brick- Look for cracked bricks or mortar pulling away from bricks Insulation- Look for condition, adequate rating for climate (the higher the R value, the more effective the insulation is) Doors and Windows- Look for loose or tight fits, condition of locks, condition of weatherstripping Roof- Look for age, conditions of flashing, pooling water, buckled shingles, or loose gutters and downspouts Ceilings, Walls, and Moldings- Look for loose pieces, dry wall that is pulling away Porch/Deck- Loose railings or steps, rot Electrical- Look for condition of fuse box/curcuit breakers, number of outlets in each room Plumbing- Look for poor water pressure, banging pipes, rust spots or corrosion that indicate leaks, sufficient insulation Water Heater- Look for age, size adequate for house, speed of recovery, energy rating Furnace/Air Conditioning- Look for age, energy rating. Furnaces are rated by annual fuel utilization efficiency; the higher the rating, the lower your fuel costs. However, the other factors such as payback period and other operating costs, such as electricity to operate motors. Garage- Look for exterior in good repair; condition of floor-cracks, stains, etc.; condition of door mechanism Basement- Look for water leakage, musty smells Attic- Look for adequate ventilation, water leaks from roof Septic Tanks (if applicable)- Adequate absorption field capacity for the percolation rate in your area and the size of your family Driveways/Sidewalks- Look for cracks, heaving pavement, crumbling near edges, stains.
FHA Program Offers Purchase, Renovation Aid	Daily Real Estate News \| August 17, 2009 \| Share FHA Program Offers Purchase, Renovation Aid The Federal Housing Administration is encouraging use of its little-known 203(k) loan program. The 203(k) lets an owner-occupant borrow money for both the purchase and renovation in one loan, and put down only 3.5 percent. The program requires the use of credentialed contractors and can include cosmetic improvements as well as major renovations like replacing plumbing or electrical. Completing the application process requires patience, says Nancy Hammock, an associate with RE/MAX Properties in Western Springs, Ill. But in this lending environment, more homebuyers are finding 203(k)s worth the hassle. In fiscal 2008, the government insured about 6,700 of the 203(k) loans. This year, more than 11,000 loans have already been insured, according to the Office of the Comptroller of the Currency. Source: Chicago Tribune, Mary Ellen Podmolik (08/14/2009)
Buyers Rush to Beat Tax Credit Deadline	Buyers Rush to Beat Tax Credit Deadline Real estate professionals report that first-time home buyers are flooding the sale market, pressed to finalize a deal before the federal government's $8,000 tax credit offer expires on Nov. 30. Because mortgage approvals, residential inspections, and other steps in the buying process typically take about two months, buyers hoping to take advantage of the incentive will need to have a contract by the end of September. The new flurry of activity now as house-hunters try to meet the deadline is triggering bidding wars and energizing the property market, which historically is slow at the end of summer. As a result, more homes are getting their full asking price. Source: Chicago Tribune, Kathleen Lynn (08/14/09)
Credit Card Limits to be Cut by 2 Trillion by 2010 – How Does This Impact You?	Credit Card Limits to be Cut by 2 Trillion by 2010 – How Does This Impact You? RISMEDIA, August 29, 2009-Ray Robinson thought he had a really good credit score, but then he applied for an auto loan and the panic set in. His once very good 758 score had dropped to 692. The most widely used credit scores run from 300 (very poor) to 850 (immaculate). First, Robinson rushed to assess what triggered the change- he pays his home loan on time, all the credit cards and the other auto loan are kept up to date too. He wasn’t using his credit cards more than usual, so what happened? Well, the economy continues to take its toll in more ways than one. As banks and lenders continue their ongoing effort to stabilize their portfolio risk they are closing a record number of credit card accounts (over 50 million were announced last week alone) and reducing millions of dollars in credit lines. This pull back reflects an unprecedented amount of credit-up to $2 trillion on cards alone by 2010. As the credit lines tighten up, even some consumers with excellent credit and spotless payment records are seeing their credit scores reduced because of the diminished credit lines. Yes, our friend Ray with the once 758 score hasn’t changed the way he manages his credit or makes purchases but the credit limits he once had to support those purchases have changed. By dropping his credit limits it would “appear” that he is using a higher percentage of what credit he has available. He might even incur a “over limit fee.” Credit card providers collect around $15 billion in penalty fees each year. So what does a few points on your credit score really matter? It’s always mattered a lot. Almost all banks, home lenders, credit card providers and even insurance companies now use your credit score to decide how risky you are for their products. If you have anything less than a 730 – 750 credit score, you typically will pay varying degrees more in the way of higher fees and interest rates. How much more? In a recent survey at bankrate.com, a consumer with the best credit could get a credit card interest rate below 8% (not including promotional/teaser rates) while those with the worst credit could see rates over 23%. It’s estimated that the typical household could pay as much as $300,000 in extra interest over a lifetime based on situations like this. This is just one of many examples that are changing the landscape of consumer credit management. So what do you do about it? Experts will tell you to review your credit report at least once every 90 days or so and watch for any changes in your profile. But just watching and waiting is not enough. The need to proactively manage your credit profile to assure you are aware and prepared for situations like Ray’s has never been greater. Additionally, having direct access to a trusted advisor who can address all your questions about your credit report as well as provide you guidance on building a plan to more effectively manage your credit and debt profiles is of the upmost importance. Let’s face it, if you are Ray and you just realized what has happened to your credit scores, you may end up either paying a higher interest rate or not being approved for your car loan if you haven’t taken the proper steps to reduce this risk. For more information, visit www.ApprovalGUARD.com. RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com. Read more: http://rismedia.com/2009-08-26/credit-card-limits-to-be-cut-by-2-trillion-by-2010-how-does-this-impact-you/#ixzz0PcXvubKh