If you are renting but have been thinking about buying a home for awhile, here is a great article published by RISMEDIA that might help you make the right choice:
To search for homes in the Greater New Orleans Area
go to
Thursday, April 14, 2016
Monday, April 4, 2016
Ready to shop for a home? Know loan types!
Before
you go mortgage shopping, know loan types.Conventional
Loans:
Conventional mortgages are ideal for borrowers with good or excellent credit. Conventional mortgages follow fairly conservative guidelines for:
—Borrower credit scores.
—Minimum down payments.
—Debt-to-income ratios.
What is “Debt-to-Income Ratio”?
Percentage of monthly income that is spent on debt payments, including mortgages, student loans, auto loans, minimum credit card payments and child support.
Closing costs, down payments, mortgage insurance and points can mean that the conventional borrower has to show up at closing with a sizable sum of money out of pocket.
What’s good: Conventional mortgages generally pose fewer hurdles than Federal Housing Administration or Veterans Affairs mortgages, which may take longer to process.
What’s not as good: You’ll need excellent credit to qualify for the best interest rates.FHA Loans:
Conventional mortgages are ideal for borrowers with good or excellent credit. Conventional mortgages follow fairly conservative guidelines for:
—Borrower credit scores.
—Minimum down payments.
—Debt-to-income ratios.
What is “Debt-to-Income Ratio”?
Percentage of monthly income that is spent on debt payments, including mortgages, student loans, auto loans, minimum credit card payments and child support.
Closing costs, down payments, mortgage insurance and points can mean that the conventional borrower has to show up at closing with a sizable sum of money out of pocket.
What’s good: Conventional mortgages generally pose fewer hurdles than Federal Housing Administration or Veterans Affairs mortgages, which may take longer to process.
What’s not as good: You’ll need excellent credit to qualify for the best interest rates.FHA Loans:
Federal
Housing Administration mortgages have flexible lending standards to
benefit:
—People whose house payments will be a big chunk of take-home pay.
—Borrowers with low credit scores.
—Homebuyers with small down payments.
The Federal Housing Administration does not lend money. It insures mortgages.
The FHA allows borrowers to spend up to 56 percent or 57 percent of their income on monthly debt obligations, such as mortgage, credit cards, student loans and car loans. In contrast, conventional mortgage guidelines tend to cap debt-to-income ratios at around 45 percent and sometimes less.
For many FHA borrowers, the minimum down payment is 3.5 percent. Borrowers can qualify for FHA loans with credit scores of 580 and even lower.
Cost: Each FHA loan has 2 mortgage insurance premiums:
—An annual premium that varies from a low of 0.45 percent to a high of 0.85 percent. This premium is rolled into the monthly mortgage payment for the life of the loan. See how the premiums vary by loan term and amount of equity.
—People whose house payments will be a big chunk of take-home pay.
—Borrowers with low credit scores.
—Homebuyers with small down payments.
The Federal Housing Administration does not lend money. It insures mortgages.
The FHA allows borrowers to spend up to 56 percent or 57 percent of their income on monthly debt obligations, such as mortgage, credit cards, student loans and car loans. In contrast, conventional mortgage guidelines tend to cap debt-to-income ratios at around 45 percent and sometimes less.
For many FHA borrowers, the minimum down payment is 3.5 percent. Borrowers can qualify for FHA loans with credit scores of 580 and even lower.
Cost: Each FHA loan has 2 mortgage insurance premiums:
—An annual premium that varies from a low of 0.45 percent to a high of 0.85 percent. This premium is rolled into the monthly mortgage payment for the life of the loan. See how the premiums vary by loan term and amount of equity.
—An
upfront premium of 1.75 percent of the loan amount, paid at
closing.
What’s good: FHA loans are often the only option for borrowers with high debt-to-income ratios and low credit scores.
What’s not as good: FHA mortgage insurance premiums usually are higher than premiums for private mortgage insurance. To get rid of FHA premiums, you must refinance the loan.
VA Loans:
Who they’re for: Most active-duty military and veterans qualify for Veterans Affairs mortgages. Many reservists and National Guard members are eligible. Spouses of military members who died while on active duty or as a result of a service-connected disability may also apply.
How they work: No down payment is required from qualified borrowers buying primary residences. The VA does not lend money but guarantees loans made by private lenders.
Cost: The VA charges an upfront VA funding fee, which can be rolled into the loan or paid by the seller. The funding fee varies from 1.25 percent to 3.3 percent of the loan amount.
The VA allows sellers to pay closing costs but doesn’t require them to. So the buyer might need money for closing costs. Borrowers may also need money for the earnest-money deposit.
What’s good: VA borrowers can qualify for 100 percent financing. Veterans do not have to be first-time buyers and may reuse their benefit.
What’s not as good: There are limits on loan amounts. The limits vary by county.
For more useful information or To Search for Homes go to http://www.homesalesneworleans.com/
What’s good: FHA loans are often the only option for borrowers with high debt-to-income ratios and low credit scores.
What’s not as good: FHA mortgage insurance premiums usually are higher than premiums for private mortgage insurance. To get rid of FHA premiums, you must refinance the loan.
VA Loans:
Who they’re for: Most active-duty military and veterans qualify for Veterans Affairs mortgages. Many reservists and National Guard members are eligible. Spouses of military members who died while on active duty or as a result of a service-connected disability may also apply.
How they work: No down payment is required from qualified borrowers buying primary residences. The VA does not lend money but guarantees loans made by private lenders.
Cost: The VA charges an upfront VA funding fee, which can be rolled into the loan or paid by the seller. The funding fee varies from 1.25 percent to 3.3 percent of the loan amount.
The VA allows sellers to pay closing costs but doesn’t require them to. So the buyer might need money for closing costs. Borrowers may also need money for the earnest-money deposit.
What’s good: VA borrowers can qualify for 100 percent financing. Veterans do not have to be first-time buyers and may reuse their benefit.
What’s not as good: There are limits on loan amounts. The limits vary by county.
For more useful information or To Search for Homes go to http://www.homesalesneworleans.com/
Thursday, March 17, 2016
Should you refinance?
Have
you thought of refinancing? The option is becoming more of a
possibility for many borrowers as housing values across the country
continue to increase. The real question is whether homeowners should
follow through with the cash out refinancing option.
A
cash-out refinance means you refinance your mortgage for more than
the current outstanding balance and keep the difference between the
old and new loans. For instance, you want $25,000 to start a
business. But you still owe $100,000 on a $200,000 house. You can
refinance the mortgage at $125,000 and use the $25,000 in equity you
pulled out for your business venture. Depending on the rate you
started with, you could end up with a lower rate and a lower payment
on the new mortgage, too.
Here are some Pros of Cash-Out Refinances:
— Satisfy big expenses: A cash-out refi is a way to access money to pay off big bills such as college tuition, medical expenses, new business funding or home improvements. It often comes at a more attractive interest rate than those on unsecured personal loans, student loans or credit cards.
— Improve your debt profile: Using a refinance to reduce or consolidate credit card debt is also considered a cash-out refinance and is a popular option.
— More stable rate: Many of borrowers choose to do a cash-out refinance for home improvement projects because they want a steady interest rate instead of an adjustable rate that comes with home equity lines of credit, or HELOCs.
Here are Cons of Cash-Out Refinances
— Worse terms: While you may get a lower interest rate than your current mortgage, your cash-out refi rate will be higher than a regular refinance at market rate. Even with a credit score is 800, you will pay a little more, usually an eighth of a percentage point higher, than the market rate on a regular loan.
— Cumbersome, and sometimes pricey, process: Gathering many of the same documents you did when you first got your home loan: past two years of tax returns; past two years of W-2 forms; 30 days’ worth of pay stubs; two most recent bank statements; and possibly more, depending on your situation.
— You’ll also have to pay closing costs at the end of the refinance, which can range from hundreds of dollars to thousands of dollars, depending on a variety of factors.
— Home at greater risk: Taking out equity puts you at greater risk of owing more than your home is worth when housing values go down.
So, is it for you?
Here are some Pros of Cash-Out Refinances:
— Satisfy big expenses: A cash-out refi is a way to access money to pay off big bills such as college tuition, medical expenses, new business funding or home improvements. It often comes at a more attractive interest rate than those on unsecured personal loans, student loans or credit cards.
— Improve your debt profile: Using a refinance to reduce or consolidate credit card debt is also considered a cash-out refinance and is a popular option.
— More stable rate: Many of borrowers choose to do a cash-out refinance for home improvement projects because they want a steady interest rate instead of an adjustable rate that comes with home equity lines of credit, or HELOCs.
Here are Cons of Cash-Out Refinances
— Worse terms: While you may get a lower interest rate than your current mortgage, your cash-out refi rate will be higher than a regular refinance at market rate. Even with a credit score is 800, you will pay a little more, usually an eighth of a percentage point higher, than the market rate on a regular loan.
— Cumbersome, and sometimes pricey, process: Gathering many of the same documents you did when you first got your home loan: past two years of tax returns; past two years of W-2 forms; 30 days’ worth of pay stubs; two most recent bank statements; and possibly more, depending on your situation.
— You’ll also have to pay closing costs at the end of the refinance, which can range from hundreds of dollars to thousands of dollars, depending on a variety of factors.
— Home at greater risk: Taking out equity puts you at greater risk of owing more than your home is worth when housing values go down.
So, is it for you?
To search for homes or for more useful information go tohttp://www.homesalesneworleans.com/
Wednesday, February 17, 2016
Are you planning to sell your home?
Are
you one of the home owners that are planning to sell in 2016?
Whether
it's a pending relocation or a thoughtfully planned downsizing that
can occur at your own pace, it's a seller's market out there right
now. Regardless of that, it never hurts to take proactive measures to
ensure your home sells as quickly as possible and for the best price!
Here are some suggestions:
Exceed buyers' expectations. Get your property into tip-top shape before you put it on the market and you’ll eliminate most buyers’ potential objections. If there is no immediate turnaround pressure, sellers should spend some time figuring out what they can afford to do to make their property appealing and what repairs are necessary. Work with a REALTOR® to gain additional insight, suggestions and advice on what would bring sellers the most “bang for the buck”.
Don’t price your home without a comparative market analysis. Ask an experienced Realtor for a CMA to help you understand what it will take to sell in your neighborhood.
Don’t wait for values to go higher before you put your home on the market. According to the National Association of REALTORS®, new home construction is still lagging behind job growth. Additionally, there are more buyers considering the housing market today, as a result of continued improvements in the job sector.
For more useful information got to http://www.homesalesneworleans.com/
Wednesday, September 16, 2015
What Drives Home Buyers Nuts
It's
not a secret that some sellers do things that drive buyers nuts. Here
are just some:
1. Many sellers don’t want to accept the fact that their home is worth substantially less than they paid, or what they thought it was worth. Some sellers base the asking price on what they “need” (like the balance left on their mortgage). Or they calculate the price they paid, plus the cost of renovations or sweat equity. The problem is that none of those factors has the slightest relation to what a house is worth. As a result the sellers set an unrealistic price, and that drives buyers nuts.
2. Occasionally you see ads that read “cash or conventional preferred.” Or the more flagrant version: “No FHA or VA “. Some sellers may mistakenly believe closing on a government-secured loan will take longer, when in truth, some conventional loans can be harder to close. A few sellers may suspect their homes won’t pass the more stringent inspection conducted by an independent, government-certified professional. Those restrictions drive buyers nuts.
3. “Silent treatment” is another one! You look at the asking price (which is a little high), study the comparables and make a solid offer. And you’re met with … silence. Instead of seeing your well-researched bid as a place to start negotiations, the sellers act offended. Whether the seller’s “offense” is strategic or genuine, it’s not smart to ignore an offer.
4. Covering up flaws is the next pet peeve. From employing strategically placed carpets to concealing unpleasant facts about the home, attempts at deception drive buyers batty. Advice to sellers: disclose everything, no matter how minor.
5. What drives a buyer crazy? Falling in love with a house that’s not really for sale. That's called “Playing Mind Games”. Or falling in love with one that has problems that a seller refuses to fix. Sellers who refuse to make needed repairs believe the buyers are hooked. And for buyers who decide to go ahead with the purchase the big question becomes: “Where’s that money for repairs going to come from down the road?”
To search MLS go to http://findneworleansproperties.gardnerrealtors.com/
Tuesday, August 11, 2015
What makes buyers decide which house to chose
If
you have ever wondered what drives a home buyer to select a
particular home look no further. Here is an interesting article by RISMEDIA that provides a great insight http://rismedia.com/rrein/20904/1023666/5079737/79678?utm_source=newsletter&utm_medium=email
To search MLS for homes go to http://findneworleansproperties.com/
Tuesday, June 30, 2015
Curb Appeal When Selling a Home
Is
the interior or the exterior more important when selling a house?
Before buyers decide to go in, they will look at how appealing your
home is by driving by. While the inside of a home is important,
sellers make a big mistake when they neglect the exterior. Curb
appeal is often a potential buyer’s first impression of a home. If
you’re selling your home or about to, how can you quickly and
effectively tackle the outdoor appeal? Here are some tips:
1.
Start with the Front Door. A
new entry door consistently ranks as one of the best projects in home
repairs, yielding an increase in home value that’s greater than the
costs to install one. To make the door especially captivating,
consider painting it a bold, pleasing color that will grab attention
and add charm.
2. Make Any Necessary Repairs. Is the window cracked or the front doorbell busted? Fix that! Buyers want turnkey, move-in-properties, and that means they want properties with repairs already done.
3. Landscaping. From mowing the lawn to pulling weeds, make sure you’re keeping up with your outdoor landscaping so that your home looks presentable and well cared for at all times. Landscape lighting can make all the difference in terms of how a home looks, so make an investment in attractive lighting options that illuminate and add interest to your property.
4. Touch Up Paint. Repaint the exterior or at least touch up problem areas. Another idea is to paint the trim a new color that creates either a nice complement or contrast to your home’s overall look.
5. Make Over the Mailbox. You might not think a mailbox matters much, but it’s yet another one of those little details that can add up together to make a strong impression on a buyer.
6. Add Outdoor Furniture. From rocking chairs on the front porch to an outdoor patio set on the back deck, outdoor furniture creates outdoor living spaces that expand your home’s appeal. Whether or not you include these pieces with the home sale, setting them up is a great way to stage your home for greater resale value.
The bottom line when it comes to curb appeal is that a little investment today can add up to big rewards tomorrow.
2. Make Any Necessary Repairs. Is the window cracked or the front doorbell busted? Fix that! Buyers want turnkey, move-in-properties, and that means they want properties with repairs already done.
3. Landscaping. From mowing the lawn to pulling weeds, make sure you’re keeping up with your outdoor landscaping so that your home looks presentable and well cared for at all times. Landscape lighting can make all the difference in terms of how a home looks, so make an investment in attractive lighting options that illuminate and add interest to your property.
4. Touch Up Paint. Repaint the exterior or at least touch up problem areas. Another idea is to paint the trim a new color that creates either a nice complement or contrast to your home’s overall look.
5. Make Over the Mailbox. You might not think a mailbox matters much, but it’s yet another one of those little details that can add up together to make a strong impression on a buyer.
6. Add Outdoor Furniture. From rocking chairs on the front porch to an outdoor patio set on the back deck, outdoor furniture creates outdoor living spaces that expand your home’s appeal. Whether or not you include these pieces with the home sale, setting them up is a great way to stage your home for greater resale value.
The bottom line when it comes to curb appeal is that a little investment today can add up to big rewards tomorrow.
For more tips visit http://findneworleansproperties.com/
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