Real Estate Trends and Selling

Are you considering selling your home? If so, you are not alone. Everyday thousands of homes are put up for sale all over the country. And guess what? These homes hit the market regardless of whether or not the trend is geared towards sellers or not. The fact of the matter is that if you want to sell your home you are going to do so when you feel that it is best. But with that being said, there are many real estate trends that can determine whether or not you are going to have the upper hand in negotiations.

One of the biggest trends in real estate is when a seller’s market is present. This real estate trend favors the seller because they are able to command a very high price from their home. This real estate trend can hold true for homes of all sizes all over the country. Of course, a sellers market is not always in play, but in many cases it is.

If you are going to be selling your home during one of these real estate trends you will want to make sure that you are asking enough money for your property. After all, when the seller has the upper hand because the trend is in their favor, they can make plenty of money off of the deal. This is a time when the seller can profit, and the buyer will simply have to decide on whether or not they want to make the deal during this time.

One thing that you should remember about real estate trends is that they can change over the course of time. This usually does not happen in a short period of time, but instead over the course of several months. So if a real estate trend that favors sellers is going strong, now may be the time to put your home on the market. Even if you are not quite ready, selling during a real estate trend like this will allow you to make more money than you ever thought possible.

Overall, real estate trends can go a long way in determining when and how you are going to sell your home. If you feel that a trend is in your favor, make sure that you discuss this with your agent. They should be able to tell you if you have the upper hand as a seller. And if you do, you will be able to take advantage of this in the way of big time profits.

Real Estate Trends and Buying

As you probably know, there are many different real estate trends that can hit the market from time to time. There is no way of saying for sure what will happen, and when it will happen. Sure, some industry professionals may be able to see a real estate trend on the horizon, but all in all this is something that you will simply have to wait for. As a buyer, knowing the trends in real estate is something that you should really take to heart. After all, buying a home is a huge purchase and may very well be the biggest one that you ever make. When you know if the market is in your favor you will have a much better chance of success.

There are times when real estate trends favor buyers in more ways than one. For instance, when there are a lot of homes for sale in a particular area the trend will more than likely be geared towards a buyer. The reason for this is quite simple. More houses means that it will be easier for a buyer to find something that suits their needs. Additionally, prices may be lower because of the higher level of competition.

On the other side of things, some real estate trends do not favor the buyer. This is when sellers are profiting big time on sales, and buyers simply have to deal with this.

If you are in the market for a new home, you may want to get in touch with an agent who can explain the real estate trends to you. Remember, even though there are some basic real estate trends that can extend across the country, there are also regional ones as well. Just because it is a buyers market in your city does not mean that this is going to hold true a couple hundred miles away. You really need to keep this in mind when shopping for a new home.

All in all, when getting ready to buy a home you can only pray that the trend in the market is going to favor you. If it does, you should have an easy time finding a home at a price you can live with. But even if the real estate trends are not in your favor, you may be able to wait for a bit until things change. Remember, trends change; that is why they are only trends!

How to Avoid Foreclosure

If you are having a hard time paying your mortgage it is safe to say that you are under a lot of stress. Not only can this put extreme pressure on your finances and personal life, but you will also have to worry about your home being foreclosed on by your lender. While this is something that happens every day all over the world, you need to do whatever you can to avoid this situation. The fact of the matter is that foreclosure is not a good thing, and being able to avoid it will make things easier on you. The only problem is that avoiding foreclosure is not always the easiest thing to do.

The best way to avoid foreclosure is to see it coming before it gets there. If you are getting backed up on your bills and know that you will not be able to pay your mortgage you need to get in touch with your lender as soon as possible. You should not even wait a day before you do this. When talking with your lender you should give them information on your financial situation, and anything else that may help you out. Remember, they are there to help you out.

Contrary to popular belief a lender does not like to foreclose on homes. A lot of people think that this is the case, but simply put this is an ugly myth. Think about it this way. If a lender forecloses on your home how are they going to get paid? When they do this they lose a lot of money, and then have to take on the burden of trying to resell your home. So instead of heading straight for foreclosure there is a good chance that your lender will be happy to help you out. There may not be anything that they can do for you, but it is at least worth asking. In most cases they can work out new terms, or help you to get caught up.

All in all, you can avoid foreclosure if you take the time to do so. The biggest mistake that most people make is thinking that things are going to get better. And the longer they wait to contact their lender the more they owe. So instead of getting yourself into this situation, you should look into touching base with your lender right away.

What is a Foreclosure?

If you are interested in the real estate industry there is a good chance that you know what foreclosures are all about. But even if you are not into real estate you have probably heard the word “foreclosure” before. The fact of the matter is that in today’s day and age this word is very popular. The reason for this is that more people than ever before are buying homes that they cannot afford, and in turn running into major problems with the bank.

So what is a foreclosure? Generally speaking, foreclosure is something that happens when a home owner does not pay their mortgage on time, or worse yet they decline to pay it at all. When you take out a mortgage on your home you are telling the lender that you will pay the money back month in and month out until you are done. But when somebody does not do this the bank has the right to send a foreclosure notice. This means that if you do not get caught up with your late payments or work out an arrangement that they home will be repossessed, and you will be without anywhere to live. So as you can see, a foreclosure is not a good thing in any way, shape, or form if you are a home owner.

If you feel that you are having a tough time making your mortgage payments you should consider getting in touch with the lender. Tell them that you are worried about foreclosure, and ask if there is anything that they can do for you. Chances are that if you do not try to hide and are upfront that you may get a break from the lender.

When a home is foreclosed on it is usually put up on the auction block shortly thereafter. This is when real estate investors really get excited because they feel that they can get a good deal on a home. They will either buy a foreclosure to sell it back to the public after fixing it up, or they may even rent it out. But no matter what a buyer does with a foreclosure, a home like this is sure to be purchased by somebody. In other words, it is not going to sit there for months on end.

Overall, foreclosures are not difficult to understand.

Learning the Mortgage Process

What exactly is a mortgage? In the most specific term, the mortgage is a document in which the home buyer states the lender will hold a lien on a piece of property until a certain amount of money is paid. Generally speaking, the mortgage applies to both this document and the loan that is used to secure the property.

Once you have decided on a piece of property that you would like to purchase, you then make an application to a lender for a mortgage loan. The lender uses information about your previous payment history, employment history, and income to determine whether or not to approve you for a mortgage loan.

Lenders do not allow home buyers to borrower mortgages loans for free. Instead, the lender charges an interest rate to the borrower. This interest rate can be higher or lower depending on the credit risk the borrower poses. The lender will communicate the total cost of your mortgage to you using an annual percentage rate (APR). The APR is expressed as a percentage and is the cost of your loan per year.

Some home buyers would like a little assurance of the amount of money they will be able to borrower before home shopping. It does, after all, ultimately affect the price of the home that is purchased. Pre-qualification and pre-approval are two processes by which a borrower can be a little more certain about the amount of mortgage loan they can borrow.

It is important to note that pre-qualification and pre-approval are not the same. Pre-qualification provides the buyer with an estimate of the amount of mortgage that can be afforded. To pre-qualify a borrower for a loan, the lenders make a decision based on income and debt information provided by the borrower. A pre-qualified amount is still subject to the approval process.

Pre-approval, on the other hand, gives the borrower a more solid figure by which to base his or her home search. Except for the appraisal and title search, the lender completes all the work of a complete approval. This includes credit checks and employment verification.

Know that you are not guaranteed a mortgage loan though either the pre-qualification or pre-approval process.

To approve you for a loan, the lender will require certain documents. This includes W-2’s, income tax returns, pay stubs, child support or alimony, bank statements for all of your accounts, and a copy of your credit report. It is best to start locating and collecting these documents as soon as you know you will be applying for a mortgage loan.

Depending on your lender and the type of mortgage loan you obtain, you will have to pay a down payment. The down payment is the difference between the final sale price of the home and the amount of the mortgage loan. If the down payment on your mortgage loan is less than 20 percent of the price of your home you will have to pay private mortgage insurance, or PMI. This insurance protects the lender in the event that you default on your mortgage loan. You can cancel PMI once you have 20 percent equity in the home.

Top Home Mortgage Mistakes

Home mortgages are tricky business. It isn’t everyday that you shop for a home. Naturally, as a buyer, you won’t be very familiar with the home mortgage process. Since a mortgage is such a large amount money, it is imperative that you are as prepared as possible. Read on to find out some of the top mistakes home owners make when applying for a mortgage.

Choosing The Wrong Mortgage. There are many types home mortgages that a home buyer can choose from. There’s fixed-rate mortgages, adjustable-rate mortgages, interest-only mortgages, and balloon mortgages to name a few. With so many to choose from, it’s easy to make the wrong choice. Especially for a buyer that isn’t familiar with the advantages and disadvantages of each.

Choosing the wrong home mortgage can be detrimental to your home ownership. Choose the wrong one and you could find yourself owning the full balance of your home within a few years. Before you make a final decision about a mortgage, make sure you fully understand the terms, interest rate, and life of the loan. Use these factors to help make your final decision. Ask your loan officer as many questions as you need to understand the loan you will be borrowing.

Borrowing With Too Much Debt. Just because a lender approves you for a home mortgage with your current debt load, doesn’t mean that you should take it. Lenders analyze your debt in different ways to determine whether or not to extend a loan to you. Borrowing a home mortgage when you have too much other debt will put your finances on a strain. When you have too much debt you are at a high risk of defaulting on your mortgage, which can lead to foreclosure.

Before taking on a home mortgage, do an analysis on your current financial situation. Consider all the income and debt you have. If your debt is more than 40% of your gross income, you should reconsider purchasing a home until you have decreased the amount of your debt.

Paying Too Little On A Down Payment. The less you put down on your home mortgage, the more you have to borrow. This ultimately leads to a higher monthly cost on your home mortgage. Not only will you have a higher monthly on your mortgage, you will also have to pay private mortgage insurance if your down payment was less than 20 of the equity of the home.

Since this kind of increase in monthly payments can be avoided, it is best to save up as much as you can for a down payment. Even if you are unable to save up a sizeable down payment, it doesn’t mean that you will be put into a financial bind. Estimate your monthly payments as much as you can before borrowing the home mortgage. Make sure your budget will be able to handle your mortgage payments.

When it comes to home mortgages, the key is to not bite off more than you can chew. A mortgage is a considerable undertaking. Prepare yourself as much as possible.

You’re Rights As a Home Buyer

Sadly, dishonest activity exists in the marketplace. The good news is that the federal government has passed laws that protect home buyers from the negative affects of these unscrupulous activities. As a home buyer, there are certain rights granted to you as you search and apply for a mortgage loan for your home. Being aware of the rights helps protect you.

Borrower’s Rights

As a borrower, and a home buyer, there are several rights granted to you by both the Consumer Credit Protection Act and the Fair Credit Billing Act. Both of these are legislation passed by the United States Congress.

You have the right as a home buyer:

• To shop for around for the best loan among different mortgage lenders and brokers.
• To be informed of your loan’s total costs. This includes interest rates, points, and other fees assessed by a lender or broker.
• To be informed of any fees that will not be refunded to you in the event that you cancel the loan agreement.
• To know the reason for denial if your loan is turned down.
• To receive a free copy of the credit report that was used in denial of your loan. The lender should give you information about obtaining this credit report.
• To have income from child support, alimony, and pension considered in qualification for a loan.
• To ask questions about anything you do not understand about loan charges and terms.
• To know what you and the lender are paying the mortgage broker for a loan.
• To be considered for a loan regardless of age (unless under the legal age to sign a contract), gender, marital status, race, color, religion, and national origin.
• To receive an appraisal report for the home.

RESPA

The Real Estate Settlement Procedures Acts, administered by the Department of Housing and Urban Development, prevents mortgage lenders and brokers from charging certain types of fees.

Lenders are required, by the RESPA to disclose certain information to you pertaining to your application for a mortgage. You, as a home buyer, must receive a Good Faith Estimate from the lender or mortgage broker. The Good Faith Estimate, or GFE, details an estimate of fees that you will be charged for your mortgage. The lender must also provide you with a Mortgage Servicing Disclosure Statement if the loan is to be serviced by or transferred to another lender.

Finally, the Special Information Booklet, containing information about real estate settlement services, must be given to you as a home buyer. These documents should be given to you within three days after your application has been received. In the event that your application is denied within three days, the lender does not have to provide with the documents.

These laws have been put into place to protect you, as a home buyer, from scams, discrimination, excessive fees, and other malicious business practices. Educating yourself to the rights you have as a home buyer brings you one step closer to obtaining a home loan. Present yourself to mortgage lenders and brokers as a home buyer that is aware of the rights provided by the law.