Posted By:
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
MISSION
Keller Williams Realty has established
a bold vision and direction for the future.
Our company's International mission:
To build careers worth having,
businesses worth owning and lives worth living.
To achieve this mission,Keller Williams Realty
provides associates:
O A prestigious and valued company image
O Incomparable business systems
O Continual leading edge education
O Unsurpassed consulting, training and support
O A new level of compensation.
Vision
company of choice for a new generation
of sales associates and real estate owners.
The real estate buying and selling public is
best served when the real estate industry is
viewed as a local business driven by
individual real estate agents and their image
with their centers of influence.
Beliefs
Keller Williams thinks like a top producer,
acts like a trainer-consultant and focuses
all of its activities on service, production
and profitability.
Behavior
Keller Williams has only one innovative
purpose --- to benefit its associates today by
helping them build their businesses.
Culture
This anagram represents our belief system.
It is the way we choose to conduct our business
and the way we choose to live our lives.
Win - Win - or no deal
Integrity - do the right thing
Commitment - in all things
Communication - seek first to understand
Creativity - ideas before results
Customers - always come first
Teamwork - together everyone achieves more
Trust - starts with honesty
Success - results through people
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
Friday, October 31, 2008
Why Keller Williams(2): Strongsville Real Estate
Posted By:
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Keller Williams Realty is a teaching,
coaching and consulting company first,
and a real estate company second,
and is designed to build wealth, assets
and cash flow for Realtors.
500 Quality Market Centers
50,000 Associates
5,000 Millionaires
How do we achieve these goals?
MARKETING
LEADERSHIP
TRAINING
(and the proper implementation of the Keller Williams Model)
Most real estate companies today
operate under the belief
that their agents are great
because
they work for a great company.
Keller Williams believes
it is a great company
because
it has great agents.
This is the fundamental difference
between Keller Williams and
your present company.
What are the assets of your company?
At Keller Williams our agents
are the company assets.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Keller Williams Realty is a teaching,
coaching and consulting company first,
and a real estate company second,
and is designed to build wealth, assets
and cash flow for Realtors.
500 Quality Market Centers
50,000 Associates
5,000 Millionaires
How do we achieve these goals?
MARKETING
LEADERSHIP
TRAINING
(and the proper implementation of the Keller Williams Model)
Most real estate companies today
operate under the belief
that their agents are great
because
they work for a great company.
Keller Williams believes
it is a great company
because
it has great agents.
This is the fundamental difference
between Keller Williams and
your present company.
What are the assets of your company?
At Keller Williams our agents
are the company assets.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
Thursday, October 30, 2008
Why Keller Williams(3): Strongsville Real Estate
Posted By:
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
10-30-08
When was the last time
your broker showed you the
financials of your company?
At Keller Williams we are an ‘open book' company.
On a monthly basis the Market Center (office)
financials are reviewed by our Agent Leadership
Council (ALC).
Since we are all business partners and since we
profit share together, everyone has the right to
see the profit and loss for the Market Center
every month. There are no secrets!
It is the responsibility of the ALC to hold
ownership and management accountable for
staying within the expense budget.
By allowing our associates to study and
understand the importance of financial statements,
they can implement these same business
systems and disciplines into their real estate
business and personal lives.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
10-30-08
When was the last time
your broker showed you the
financials of your company?
At Keller Williams we are an ‘open book' company.
On a monthly basis the Market Center (office)
financials are reviewed by our Agent Leadership
Council (ALC).
Since we are all business partners and since we
profit share together, everyone has the right to
see the profit and loss for the Market Center
every month. There are no secrets!
It is the responsibility of the ALC to hold
ownership and management accountable for
staying within the expense budget.
By allowing our associates to study and
understand the importance of financial statements,
they can implement these same business
systems and disciplines into their real estate
business and personal lives.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
Why Keller Williams(4): Strongsville Real Estate
Posted By:
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
10-30-08
Then & Now...
A Powerful Shift of Focus
•• The "Old" Dependent Model
The best analogy for this model is that of the Parent/Child. This is the Employer/Employee Model or Top Down Style of Real Estate. It is often characterized as US vs. THEM. It is low risk and low reward and broker focused rather than associate focused. Firms that utilize this model characteristically have lots of "stuff".
•• The "Transitional" Independent Model
The independent model is characterized as a landlord/tenant relationship. It is high risk and high reward with little or no management. Many top producers switched to this model in the middle 1980's with the development of 100% offices. One might think of this model as the "teenage" years of real estate.
•• THE NEW INTERDEPENDENT MODEL
Interdependence arrived with a genuine partnership between the agent and their company. The agent has an opportunity to truly hold their company accountable and the profits that are generated by the agents are shared with the agents that help the company grow. Mutual accountability then leads to a higher level of professionalism. This Model is KELLER WILLIAMS REALTY
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
10-30-08
Then & Now...
A Powerful Shift of Focus
•• The "Old" Dependent Model
The best analogy for this model is that of the Parent/Child. This is the Employer/Employee Model or Top Down Style of Real Estate. It is often characterized as US vs. THEM. It is low risk and low reward and broker focused rather than associate focused. Firms that utilize this model characteristically have lots of "stuff".
•• The "Transitional" Independent Model
The independent model is characterized as a landlord/tenant relationship. It is high risk and high reward with little or no management. Many top producers switched to this model in the middle 1980's with the development of 100% offices. One might think of this model as the "teenage" years of real estate.
•• THE NEW INTERDEPENDENT MODEL
Interdependence arrived with a genuine partnership between the agent and their company. The agent has an opportunity to truly hold their company accountable and the profits that are generated by the agents are shared with the agents that help the company grow. Mutual accountability then leads to a higher level of professionalism. This Model is KELLER WILLIAMS REALTY
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
Wednesday, October 29, 2008
Why Keller Williams(5) : Strongsville Real Estate
Posted By:
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
10-29-08
A learning based individual has made
the decision to use effective learning as
the foundation piece for their action plan
to develop their life.
This is not knowledge for knowledge sake,
but rather knowing for "doing sake."
The two paths from which learning based
people travel lead to inner enlightenment
and outer production, both of which end
in higher self-actualization.
At Keller Williams our education programs
provide our associates a learning based
environment. Our associates are encouraged
to develop a learning plan that incorporates
the steps to self-mastery.
As you would expect in the industry's finest real estate
company, both education and training are tailor-made for
our sales associates who receive the very best in real
estate education through the ongoing training from
Keller Williams University. It is a tangible extension of
Keller Williams continuous commitment to learning and
growth. The educational programs are focused on
increasing the personal productivity, sales skills and
career development of our associates.
Mega Achievement Productivity Systems (M.A.P.S)
This program was developed to help all Keller Williams sales associates
develop their sales jobs into highly productive businesses. It covers such
topics as budgeting, hiring assistants and "getting free" from the business..
Quantum Leap
This course is designed to help us learn the disciplines of success and
build true wealth in every aspect of our lives. The focus is on lifetime
achievement and living an abundant life.
Business Leadership Training
This series is designed to develop knowledge, skills and habits related
to success in building a profitable sales business, including recruiting
and selecting the right people into your life, action-focused training,
leadership, consulting, team building and productivity specific environment.
Agent Productivity Training
This series focuses on the primary elements of real estate sales success,
i.e., positioning & marketing, customer service & satisfaction, selling,
presenting & negotiating, prospecting & lead management, systems &
technology, goal setting & planning, scripts & dialogues, and transactions.
With this kind of knowledge, you can take
your life and your career to a higher level.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
10-29-08
A learning based individual has made
the decision to use effective learning as
the foundation piece for their action plan
to develop their life.
This is not knowledge for knowledge sake,
but rather knowing for "doing sake."
The two paths from which learning based
people travel lead to inner enlightenment
and outer production, both of which end
in higher self-actualization.
At Keller Williams our education programs
provide our associates a learning based
environment. Our associates are encouraged
to develop a learning plan that incorporates
the steps to self-mastery.
As you would expect in the industry's finest real estate
company, both education and training are tailor-made for
our sales associates who receive the very best in real
estate education through the ongoing training from
Keller Williams University. It is a tangible extension of
Keller Williams continuous commitment to learning and
growth. The educational programs are focused on
increasing the personal productivity, sales skills and
career development of our associates.
Mega Achievement Productivity Systems (M.A.P.S)
This program was developed to help all Keller Williams sales associates
develop their sales jobs into highly productive businesses. It covers such
topics as budgeting, hiring assistants and "getting free" from the business..
Quantum Leap
This course is designed to help us learn the disciplines of success and
build true wealth in every aspect of our lives. The focus is on lifetime
achievement and living an abundant life.
Business Leadership Training
This series is designed to develop knowledge, skills and habits related
to success in building a profitable sales business, including recruiting
and selecting the right people into your life, action-focused training,
leadership, consulting, team building and productivity specific environment.
Agent Productivity Training
This series focuses on the primary elements of real estate sales success,
i.e., positioning & marketing, customer service & satisfaction, selling,
presenting & negotiating, prospecting & lead management, systems &
technology, goal setting & planning, scripts & dialogues, and transactions.
With this kind of knowledge, you can take
your life and your career to a higher level.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
Mortages and Retirement : Real Estate Strongsville
By:
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
10-29-08
Everyone imagines the day that they will once and for all be done with their dread some mortgage payment. Everyone also looks forward to the day that their most valuable asset will truly be theirs. Still, some others may disagree. These few would rather have their extra money invested rather than tied up in their house. So, the real question is: Who is right?
Well, the answer really depends on you. So let's review a few facts before you make a decision.
Firstly, let us compare interest rates. The typical 30-year, fixed-rate mortgage interest rate is roughly 6.5 percent. If you are getting a higher average rate of return on your investments elsewhere than it makes sense to invest. About half of affluent baby boomers born do not plan to pay off their mortgages until their 70s, if ever.
Another way to think about it in this case is mortgages free up funds that could be tied up in investment in equities. Also, when investing in the stock market, money that would otherwise be tied up in home equity also gives you the option of raising cash to deal with unexpected expenses like medical bills or even rising gas prices.
When considering the complete opposite. If you're not sure whether you can achieve a higher, then you should prepay your mortgage principal as you approach retirement. At this time, the guaranteed return on your money is the interest you were paying.
Also, refinancing from a variable-rate loan to a fixed-rate mortgage can give you a better idea of what your payments will be in retirement. It is recommended to pay down principal above your monthly payments when you can, because when you add money at your discretion you give yourself the ability to stop that when times are tighter. For example, on a $150,000, 30-year mortgage at 6 percent interest, paying just $100 extra per month will save you $45,000.
Also, remember do not take money from your retirement plan. Often, it can be tempting to dip into your 401K or IRA to pay off your mortgage, but it is recommended that mortgages shouldn't be paid off in the absence of other savings. You need to have a balanced approach. Remember, if you invest it, all you have to do is liquidate it.
And don't forget to consider tax breaks. Actually, the interest you pay on your home mortgage is tax deductible on up to $1 million in debt. Also, you can typically write off interest on up to $100,000 of home-equity debt. You benefit from this only if all your itemized tax deductions add up to more than the standard deduction. In 2008, the standard deduction amounts are $5,450 for singles, $10,900 for couples, and $8,000 for heads of households. For everyone, this could also be viewed as saving around one percent on their mortgage payment.
Finally, you need to look at the emotional aspect of the decision. Around 16 percent of workers and 10 percent of retirees think making mortgage payments or paying for a house is the most pressing financial issue. Honestly, knowing that you own your home can also give you a sense of stability in retirement. Also, paying off the mortgage is going to reduce their need for cash flow when they go into retirement. Truthfully, the more money you have on hand, the better you will be able to deal with whatever problems there may be. Best of luck with you decision!
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
10-29-08
Everyone imagines the day that they will once and for all be done with their dread some mortgage payment. Everyone also looks forward to the day that their most valuable asset will truly be theirs. Still, some others may disagree. These few would rather have their extra money invested rather than tied up in their house. So, the real question is: Who is right?
Well, the answer really depends on you. So let's review a few facts before you make a decision.
Firstly, let us compare interest rates. The typical 30-year, fixed-rate mortgage interest rate is roughly 6.5 percent. If you are getting a higher average rate of return on your investments elsewhere than it makes sense to invest. About half of affluent baby boomers born do not plan to pay off their mortgages until their 70s, if ever.
Another way to think about it in this case is mortgages free up funds that could be tied up in investment in equities. Also, when investing in the stock market, money that would otherwise be tied up in home equity also gives you the option of raising cash to deal with unexpected expenses like medical bills or even rising gas prices.
When considering the complete opposite. If you're not sure whether you can achieve a higher, then you should prepay your mortgage principal as you approach retirement. At this time, the guaranteed return on your money is the interest you were paying.
Also, refinancing from a variable-rate loan to a fixed-rate mortgage can give you a better idea of what your payments will be in retirement. It is recommended to pay down principal above your monthly payments when you can, because when you add money at your discretion you give yourself the ability to stop that when times are tighter. For example, on a $150,000, 30-year mortgage at 6 percent interest, paying just $100 extra per month will save you $45,000.
Also, remember do not take money from your retirement plan. Often, it can be tempting to dip into your 401K or IRA to pay off your mortgage, but it is recommended that mortgages shouldn't be paid off in the absence of other savings. You need to have a balanced approach. Remember, if you invest it, all you have to do is liquidate it.
And don't forget to consider tax breaks. Actually, the interest you pay on your home mortgage is tax deductible on up to $1 million in debt. Also, you can typically write off interest on up to $100,000 of home-equity debt. You benefit from this only if all your itemized tax deductions add up to more than the standard deduction. In 2008, the standard deduction amounts are $5,450 for singles, $10,900 for couples, and $8,000 for heads of households. For everyone, this could also be viewed as saving around one percent on their mortgage payment.
Finally, you need to look at the emotional aspect of the decision. Around 16 percent of workers and 10 percent of retirees think making mortgage payments or paying for a house is the most pressing financial issue. Honestly, knowing that you own your home can also give you a sense of stability in retirement. Also, paying off the mortgage is going to reduce their need for cash flow when they go into retirement. Truthfully, the more money you have on hand, the better you will be able to deal with whatever problems there may be. Best of luck with you decision!
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
Tuesday, October 28, 2008
Mortgage; TO WAIT OR NOT TO WAIT THAT IS THE QUESTION : Strongsville Real Estate
By:
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-28-08
Waiting on an interest rate can cost home buyers more than they think...
"The sooner, the better" may be the best strategy for buying houses. That's because lower interest rates can actually mean higher costs for those who delay the purchase of a home too long. When there are fluctuations in mortgage rates, Americans have a habit of waiting just a little while longer, hoping to save thousands of dollars as the rates dip lower. But, even if the rates do fall further, that waiting strategy can actually cost you more.
For example, a $150,000 house is purchased with a down payment of $30,000 and the balance is financed at a fixed 8.75 percent rate over 30 years. Monthly principal and interest payments come to $944.05. If the buyer chooses to wait until interest rates drop to 8.50 percent and, in the meantime the cost of the house climbs a modest 2 percent, which is a common increase in an interest-driven market, the monthly payment would rise to $945.78. Now after all that waiting trying to save money you have actually lost money and that is the common reality most buyers face.
Housing costs do not always offset lower interest rates. Just remember, "Waiting for interest rates to bottom-out" is a gamble. The bottom may not be the best time to buy. Talk to your local real estate agent or broker today to determine the best fit in housing and interest rate costs for you.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-28-08
Waiting on an interest rate can cost home buyers more than they think...
"The sooner, the better" may be the best strategy for buying houses. That's because lower interest rates can actually mean higher costs for those who delay the purchase of a home too long. When there are fluctuations in mortgage rates, Americans have a habit of waiting just a little while longer, hoping to save thousands of dollars as the rates dip lower. But, even if the rates do fall further, that waiting strategy can actually cost you more.
For example, a $150,000 house is purchased with a down payment of $30,000 and the balance is financed at a fixed 8.75 percent rate over 30 years. Monthly principal and interest payments come to $944.05. If the buyer chooses to wait until interest rates drop to 8.50 percent and, in the meantime the cost of the house climbs a modest 2 percent, which is a common increase in an interest-driven market, the monthly payment would rise to $945.78. Now after all that waiting trying to save money you have actually lost money and that is the common reality most buyers face.
Housing costs do not always offset lower interest rates. Just remember, "Waiting for interest rates to bottom-out" is a gamble. The bottom may not be the best time to buy. Talk to your local real estate agent or broker today to determine the best fit in housing and interest rate costs for you.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
The negative effects of home foreclosure, and how to save yourself from the biggest loss : Cleveland Real Estate
By:
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
10-28-08
Home ownership is one of the biggest dreams most individuals hope to fulfill. Owning a home not only speaks highly of an individual's achievements in life, but is ultimately the place where one can come home to after a long day at work.
Sadly, there are no absolute guarantees in life and such circumstances as illness, losing one's job, divorce or other life changing events can severely impact the average home owner. These unfortunate events may hamper one's ability to meet their financial ability to pay bills, taxes or even their home mortgages. When the home mortgage is the case, a lending institution may choose to file a home foreclosure. What is even worse than simply losing their home, is the serious financial and emotional repercussions that may also be experienced. Let us explore these for a moment.
Firstly, the experience of home foreclosure often means losing not only appreciation, but the equity invested in one's home over the years, which may reflect the loss of thousands and thousands of dollars. Yes, this is horrible in and of itself, but still other hardships are yet to come, and they may be worse. For example, upon foreclosure the bank/lending institution will report a financial loss on their income statement, which will require the already financially distressed home owner to declare the same loss amount as an increase in taxable income. Subsequently, they will be pushed even further into debt. Next, is the destruction of the individual's credit report, which sends a strong implication to creditors that, the individual cannot satisfy the terms of offered credit? This means that all these newly acquired expenses will not likely be covered by credit, and as more and more bills ensue, the individual falls further and further behind. So, what can these poor individuals do now? For most this is when, declaring bankruptcy becomes reality. Yes, this does seem like the easy way out, but they will likely not be extended credit or loans again for up to 10 years. Yet, don't worry, there is another option. An option most individuals do not even know exists. Pre-Foreclosure.
So, what is pre-foreclosure? Pre-Foreclosure is when a seller is in financial distress, and the bank/lending institution approves a sale even though the property will sell for a price less than what is owed to the lender. What this means to these financially distressed individuals is that rather than accumulating excessive future bills and credit woes for possibly the next 10 years, they do have an option to start back at square one and hopefully get their life back on track. I assume this sounds great in comparison, but realize this does tack time (on average 4-5 months) and is not certain (is subject to bank approval). Yet, if done right can be the best option. So, how can an individual apply for a pre-foreclosure?
Firstly, the property and seller must be qualified as a pre-foreclosure candidate. This means the seller must file a recent financial statement , a hardship explanation letter (in writing), most recent checking and savings account information, and prove they are at least 30 days delinquent on mortgage and bill payment, and submit all necessary documentation to the bank/lending institution (may differ between banks/lenders). Okay, so the bank/lending institution accepts the individual, so what is next.
Well, now the individual must bring forth a signed and ratified listing agreement. Then, they must obtain a contract signed by both buyer and seller, which will be subject to bank approval. This approval is subject to a settlement statement of seller paid closing costs, proof of buyer's financing, title report, and BPOs (Bank Price Opinions) for each lien affixed to the property. Yes, this is not a short process, but is worth all the effort.
So, if foreclosure is possibly your reality, talk to you local Realtor, and ask them if pre-foreclosure is an option for you. This could save you money and hopefully save you from the long term financial distress faced when foreclosure is your option.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
10-28-08
Home ownership is one of the biggest dreams most individuals hope to fulfill. Owning a home not only speaks highly of an individual's achievements in life, but is ultimately the place where one can come home to after a long day at work.
Sadly, there are no absolute guarantees in life and such circumstances as illness, losing one's job, divorce or other life changing events can severely impact the average home owner. These unfortunate events may hamper one's ability to meet their financial ability to pay bills, taxes or even their home mortgages. When the home mortgage is the case, a lending institution may choose to file a home foreclosure. What is even worse than simply losing their home, is the serious financial and emotional repercussions that may also be experienced. Let us explore these for a moment.
Firstly, the experience of home foreclosure often means losing not only appreciation, but the equity invested in one's home over the years, which may reflect the loss of thousands and thousands of dollars. Yes, this is horrible in and of itself, but still other hardships are yet to come, and they may be worse. For example, upon foreclosure the bank/lending institution will report a financial loss on their income statement, which will require the already financially distressed home owner to declare the same loss amount as an increase in taxable income. Subsequently, they will be pushed even further into debt. Next, is the destruction of the individual's credit report, which sends a strong implication to creditors that, the individual cannot satisfy the terms of offered credit? This means that all these newly acquired expenses will not likely be covered by credit, and as more and more bills ensue, the individual falls further and further behind. So, what can these poor individuals do now? For most this is when, declaring bankruptcy becomes reality. Yes, this does seem like the easy way out, but they will likely not be extended credit or loans again for up to 10 years. Yet, don't worry, there is another option. An option most individuals do not even know exists. Pre-Foreclosure.
So, what is pre-foreclosure? Pre-Foreclosure is when a seller is in financial distress, and the bank/lending institution approves a sale even though the property will sell for a price less than what is owed to the lender. What this means to these financially distressed individuals is that rather than accumulating excessive future bills and credit woes for possibly the next 10 years, they do have an option to start back at square one and hopefully get their life back on track. I assume this sounds great in comparison, but realize this does tack time (on average 4-5 months) and is not certain (is subject to bank approval). Yet, if done right can be the best option. So, how can an individual apply for a pre-foreclosure?
Firstly, the property and seller must be qualified as a pre-foreclosure candidate. This means the seller must file a recent financial statement , a hardship explanation letter (in writing), most recent checking and savings account information, and prove they are at least 30 days delinquent on mortgage and bill payment, and submit all necessary documentation to the bank/lending institution (may differ between banks/lenders). Okay, so the bank/lending institution accepts the individual, so what is next.
Well, now the individual must bring forth a signed and ratified listing agreement. Then, they must obtain a contract signed by both buyer and seller, which will be subject to bank approval. This approval is subject to a settlement statement of seller paid closing costs, proof of buyer's financing, title report, and BPOs (Bank Price Opinions) for each lien affixed to the property. Yes, this is not a short process, but is worth all the effort.
So, if foreclosure is possibly your reality, talk to you local Realtor, and ask them if pre-foreclosure is an option for you. This could save you money and hopefully save you from the long term financial distress faced when foreclosure is your option.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
Monday, October 27, 2008
Waterford Crossing HOA Information : Strongsville Real Estate
By:
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
1o-27-08
Thank you for visiting this page and for your interest Waterford Crossing!
This development is located off Drake Road, with Boston Road to the south and Drake Road to the north, and includes such amenities as a 25 meter outdoor swimming pool with toddler area, a picnic playground area with jungle gym, tennis courts and a luxurious club house available for rental by homeowners for a nominal fee (just $125).
There is an association fee for every home owner along with property owner's association rules and bylaws. Yet, with all the amenities and association activities it is definitely worth you dollar.
I am one of the area's most renounced experts, with 30 years in Strongsville, and a team ready to properly serve all my customer's needs.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
Also feel free to check out the Waterford Crossing websites at
www.wcho.org
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
1o-27-08
Thank you for visiting this page and for your interest Waterford Crossing!
This development is located off Drake Road, with Boston Road to the south and Drake Road to the north, and includes such amenities as a 25 meter outdoor swimming pool with toddler area, a picnic playground area with jungle gym, tennis courts and a luxurious club house available for rental by homeowners for a nominal fee (just $125).
There is an association fee for every home owner along with property owner's association rules and bylaws. Yet, with all the amenities and association activities it is definitely worth you dollar.
I am one of the area's most renounced experts, with 30 years in Strongsville, and a team ready to properly serve all my customer's needs.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
Also feel free to check out the Waterford Crossing websites at
www.wcho.org
Westwood Farms HOA Information : Strongsville Real Estate
By:
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
10-27-08
Thank you for visiting this page and for your interest Westwood Farms!
This development is located off Prospect Road, with Westwood Road to the south and Albion Road to the north, and includes such amenities as an Olympic sized outdoor swimming pool, a picnic playground area with jungle gym, basketball court, tennis courts and a luxurious club house available for rental by homeowners for a nominal fee.
There is a yearly association fee (currently 475 annually) for every home owner along with property owner's association rules and bylaws. Furthermore, the cluster homes within the development are subject to regular condo type maintenance fees (generally $100/mo.), association rules and restrictions in addition to the Westwood Farms Association fees.est
Westwood Farms Website :
www.westwoodfarms.org
I am one of the area's most renounced experts, with 30 years in Strongsville, and a team ready to properly serve all my customer's needs.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
10-27-08
Thank you for visiting this page and for your interest Westwood Farms!
This development is located off Prospect Road, with Westwood Road to the south and Albion Road to the north, and includes such amenities as an Olympic sized outdoor swimming pool, a picnic playground area with jungle gym, basketball court, tennis courts and a luxurious club house available for rental by homeowners for a nominal fee.
There is a yearly association fee (currently 475 annually) for every home owner along with property owner's association rules and bylaws. Furthermore, the cluster homes within the development are subject to regular condo type maintenance fees (generally $100/mo.), association rules and restrictions in addition to the Westwood Farms Association fees.est
Westwood Farms Website :
www.westwoodfarms.org
I am one of the area's most renounced experts, with 30 years in Strongsville, and a team ready to properly serve all my customer's needs.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612
Sunday, October 26, 2008
10-26 : OPEN HOUSE : 2-4 : 11774 Fox Grove - Westwood Farms : Strongsville Real Estate : Keller Williams Realty
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10-26 : OPEN HOUSE : 2-4 : 21000 Westminster Drive Waterford Crossing : Strongsville Real Estate : Keller Williams Realty
|
10-26 : OPEN HOUSE : 3-5 : 17978 Lyon Lane The Woods : Strongsville Real Estate : Keller Williams Realty
|
Saturday, October 25, 2008
High Point HOA Information : Strongsville Real Estate
Posted by:
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-25-08
Thank you for visiting this page and for your interest High Point!
This development is located off Drake Road, with Boston Road to the south and Drake Road to the north, and includes such amenities as a 25 meter outdoor swimming pool with diving board, slides and toddler area, a picnic playground area with jungle gym, basketball court, tennis courts and a luxurious club house available for rental by homeowners for a nominal fee($125 to $225 depending on the time of year).
There is an association fee for every home owner along with property owner's association rules and bylaws. Yet, with all the amenities and association activities it is definitely worth you dollar.
I am one of the area's most renounced experts, with 30 years in Strongsville, and a team ready to properly serve all my customer's needs.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
Also feel free to check out the High Point websites at
www.highpoint-homeowners.com
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-25-08
Thank you for visiting this page and for your interest High Point!
This development is located off Drake Road, with Boston Road to the south and Drake Road to the north, and includes such amenities as a 25 meter outdoor swimming pool with diving board, slides and toddler area, a picnic playground area with jungle gym, basketball court, tennis courts and a luxurious club house available for rental by homeowners for a nominal fee($125 to $225 depending on the time of year).
There is an association fee for every home owner along with property owner's association rules and bylaws. Yet, with all the amenities and association activities it is definitely worth you dollar.
I am one of the area's most renounced experts, with 30 years in Strongsville, and a team ready to properly serve all my customer's needs.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
Also feel free to check out the High Point websites at
www.highpoint-homeowners.com
High Point HOA Information : Strongsville Real Estate
Posted by:
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-25-08
Thank you for visiting this page and for your interest High Point!
This development is located off Drake Road, with Boston Road to the south and Drake Road to the north, and includes such amenities as a 25 meter outdoor swimming pool with diving board, slides and toddler area, a picnic playground area with jungle gym, basketball court, tennis courts and a luxurious club house available for rental by homeowners for a nominal fee($125 to $225 depending on the time of year).
There is an association fee for every home owner along with property owner's association rules and bylaws. Yet, with all the amenities and association activities it is definitely worth you dollar.
I am one of the area's most renounced experts, with 30 years in Strongsville, and a team ready to properly serve all my customer's needs.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
Also feel free to check out the High Point websites at
www.highpoint-homeowners.com
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-25-08
Thank you for visiting this page and for your interest High Point!
This development is located off Drake Road, with Boston Road to the south and Drake Road to the north, and includes such amenities as a 25 meter outdoor swimming pool with diving board, slides and toddler area, a picnic playground area with jungle gym, basketball court, tennis courts and a luxurious club house available for rental by homeowners for a nominal fee($125 to $225 depending on the time of year).
There is an association fee for every home owner along with property owner's association rules and bylaws. Yet, with all the amenities and association activities it is definitely worth you dollar.
I am one of the area's most renounced experts, with 30 years in Strongsville, and a team ready to properly serve all my customer's needs.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
Also feel free to check out the High Point websites at
www.highpoint-homeowners.com
The Woods of Strongsville HOA Information : Strongsville Real Estate
By:
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-25-08
Thank you for visiting this page and for your interest in The Woods of Strongsville!
This development is located off Pearl Road, with Boston Road to the south and Drake Road to the north, and includes such amenities as a picnic playground area with jungle gym, tennis courts and soccer field.
There is an association fee for every home owner along with property owner's association rules and bylaws. This development offers traditional colonials ranging from $250,000 to $350,000 (with a fee of $165 per year), and cluster homes as well.
I am one of the area's most renounced experts, with 30 years in Strongsville, and a team ready to properly serve all my customer's needs. Also, I am a homeowner myself in The Woods of Strongsville for 13years and would love to give you any other information you may need pertaining to this great development.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
Also feel free to check out The Woods of Strongsville websites at
www.woodsofstrongsville.com/index.html
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-25-08
Thank you for visiting this page and for your interest in The Woods of Strongsville!
This development is located off Pearl Road, with Boston Road to the south and Drake Road to the north, and includes such amenities as a picnic playground area with jungle gym, tennis courts and soccer field.
There is an association fee for every home owner along with property owner's association rules and bylaws. This development offers traditional colonials ranging from $250,000 to $350,000 (with a fee of $165 per year), and cluster homes as well.
I am one of the area's most renounced experts, with 30 years in Strongsville, and a team ready to properly serve all my customer's needs. Also, I am a homeowner myself in The Woods of Strongsville for 13years and would love to give you any other information you may need pertaining to this great development.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
Also feel free to check out The Woods of Strongsville websites at
www.woodsofstrongsville.com/index.html
Friday, October 24, 2008
Understanding the Offer Process : Strongsville Real Estate : Keller Williams Realty
By:
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-24-08
Above-average levels of property inventory have left today's buyers overwhelmed with the choice and selection of homes.
The average home buyerspends about five weeks investigating real estate housing, school and community information before even contacting a real estate agent.
Yet, once you have narrowed down the selection to your preferred house, it's finally time to make an offer. But how does it work and what can you do to help get your offer accepted?
The Offer Process
Working through your REALTOR, you will draft an offer with price and terms that you are comfortable with and that you think, hopefully, the seller can accept.
The first issue that comes to mind for most people is, of course, price. However, terms that also need to be considered and presented in the offer are such items as the earnest money and down payment you are making, mortgage loan amount and type you will secure, what date you will close the contract, when you will occupy the property and whether or not there are personal property items for which you are asking.
Inspections need to be specified and can include a general home, pool, pest, radon, lead based paint and/or roof inspections. Your REALTOR can advise on other terms particular to your offer.
Always, be sure to take adequate time to thoroughly read through the contract, and ask your REALTOR to go over the contract with you in detail. Then you will sign the purchase offer and receive a copy of all documents, including the offer itself, real estate agency disclosures and any other pertinent local disclosures. (It is more beneficial to have a face-to-face with your REALTOR to write the offer.) However, if time and location prevent a meeting, your REALTOR can fax copies of the contract to the parties.
Presenting the Offer
By this point you and your REALTOR have spent a good amount of time and care in preparing a fair offer. Since you have now fallen in love with the home, you want your offer to be accepted!
The best opportunity to open a productive dialogue that will result in a successful sale is to have your REALTOR present the offer in person. That way the agent can be the most effective when "sell ing the sellers", on the offer and their ability to qualify and close on the property.
Still, since "time is of the essence" occasionally offers can be negotiated over the phone and contracts faxed for signatures of people are not physically available.
What should be avoided is to either have the offer faxed, droppedn off or mailed to the seller or their agent direct without a presentation. There is a good chance the offer will lose out to competing offers.
Escpecially in this market, it is recommended a letter pre-approval from a lender be included to emphasize the qualifications of the buyer.
The way in which the offer is written and presented, can have a major impact not only on whether or not you are successful, but on the price and terms to which the seller will agree. So, be informed and make sure your REALTOR is looking out for your best interest.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-24-08
Above-average levels of property inventory have left today's buyers overwhelmed with the choice and selection of homes.
The average home buyerspends about five weeks investigating real estate housing, school and community information before even contacting a real estate agent.
Yet, once you have narrowed down the selection to your preferred house, it's finally time to make an offer. But how does it work and what can you do to help get your offer accepted?
The Offer Process
Working through your REALTOR, you will draft an offer with price and terms that you are comfortable with and that you think, hopefully, the seller can accept.
The first issue that comes to mind for most people is, of course, price. However, terms that also need to be considered and presented in the offer are such items as the earnest money and down payment you are making, mortgage loan amount and type you will secure, what date you will close the contract, when you will occupy the property and whether or not there are personal property items for which you are asking.
Inspections need to be specified and can include a general home, pool, pest, radon, lead based paint and/or roof inspections. Your REALTOR can advise on other terms particular to your offer.
Always, be sure to take adequate time to thoroughly read through the contract, and ask your REALTOR to go over the contract with you in detail. Then you will sign the purchase offer and receive a copy of all documents, including the offer itself, real estate agency disclosures and any other pertinent local disclosures. (It is more beneficial to have a face-to-face with your REALTOR to write the offer.) However, if time and location prevent a meeting, your REALTOR can fax copies of the contract to the parties.
Presenting the Offer
By this point you and your REALTOR have spent a good amount of time and care in preparing a fair offer. Since you have now fallen in love with the home, you want your offer to be accepted!
The best opportunity to open a productive dialogue that will result in a successful sale is to have your REALTOR present the offer in person. That way the agent can be the most effective when "sell ing the sellers", on the offer and their ability to qualify and close on the property.
Still, since "time is of the essence" occasionally offers can be negotiated over the phone and contracts faxed for signatures of people are not physically available.
What should be avoided is to either have the offer faxed, droppedn off or mailed to the seller or their agent direct without a presentation. There is a good chance the offer will lose out to competing offers.
Escpecially in this market, it is recommended a letter pre-approval from a lender be included to emphasize the qualifications of the buyer.
The way in which the offer is written and presented, can have a major impact not only on whether or not you are successful, but on the price and terms to which the seller will agree. So, be informed and make sure your REALTOR is looking out for your best interest.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612
Understanding the Closing process : Stongsville Real Estate : Keller Williams Realty
By:
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-24-08
So, what does the closing involve?
The first part is the offer. Here, there is no guarantee that your offer will be accepted by the seller, but once you find your perfect house, it's wise to move fast. I find that a good rule of thumb is to make an offer that's 10 percent below the asking price. This should give you some room to negotiate, but will not be offensive so the seller is likely to counter.
The second part is the deposit or earnest money, this is a demonstration of good faith and commitment by the buyer to the seller. This will allow the seller to recognize you as a serious buyer. The deposit is usually 1 percent of the home's purchase price and is included in an offer to purchase. Usually, the real estate brokerage holds the deposit in trust until the deal closes. If you decide not to close on a deal once your offer has been accepted, you may lose your deposit and be sued for damages. If the seller does not accept your offer, your deposit will be returned. If the sale proceeds, your deposit is usually applied to your down payment.
Also involved are contingencies. These are certain requirements in a contract that need to be met before the buyer is required to close. Typical among them: the buyer's securing of financing and an acceptable house inspection. Generally speaking, an inspection contingency covers a 10-to-14-day period from the acceptance of the contract, and financing contingencies run for 30 days. Yet, be aware, in a seller's market, buyers may be asked to fulfill their contingency requirements in shorter time frames.
Okay, so what does a home inspection involve. In a home inspection, a professional conducts a thorough examination of a property to assess its structural and mechanical condition. The idea here is to catch potential problems that a buyer might not detect.
Finally you will move forward with closing and recieve a "closing statement". This is a document that the Department of Housing and Urban Development requires to account for all financial aspects surrounding the sale and purchase of a home. It provides a list of the funds that were paid at closing. Items include real estate commissions and initial escrow amounts (money or securities deposited). The Real Estate Settlement Procedures Act requires that a copy of the settlement sheet be distributed to both parties at least one day prior to settlement.
Still, before you can close on a house, some paperwork must be completed. This includes a title search (makes sure the title is clear), title insurance (protects the buyer and the lender from an oversight regarding a claim) and an application for homeowner's insurance (necessary for securing a mortgage).
Alright, so here is the question you realy want to know... What are the closing costs? Well, these costs varies, but may include: a loan origination fee, an appraisal fee, the cost of a credit report, a lender's inspection fee, the cost of title insurance, a mortgage broker fee, taxes and a fee for document preparation. Remember, your lender is required to give you prior notice of fees associated with your loan.
So, now the deal is nearing closing, but before the deal is closed and you take possession, you must make some arrangements regarding utility service and first mortgage payment.
An finally, we come to settlement which describes the payment of the balance of the purchase price the buyer owes on the property, and the transfer of the title. Once the title is in your hands, you can now look back and remember the journey, and enjoy your new home.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-24-08
So, what does the closing involve?
The first part is the offer. Here, there is no guarantee that your offer will be accepted by the seller, but once you find your perfect house, it's wise to move fast. I find that a good rule of thumb is to make an offer that's 10 percent below the asking price. This should give you some room to negotiate, but will not be offensive so the seller is likely to counter.
The second part is the deposit or earnest money, this is a demonstration of good faith and commitment by the buyer to the seller. This will allow the seller to recognize you as a serious buyer. The deposit is usually 1 percent of the home's purchase price and is included in an offer to purchase. Usually, the real estate brokerage holds the deposit in trust until the deal closes. If you decide not to close on a deal once your offer has been accepted, you may lose your deposit and be sued for damages. If the seller does not accept your offer, your deposit will be returned. If the sale proceeds, your deposit is usually applied to your down payment.
Also involved are contingencies. These are certain requirements in a contract that need to be met before the buyer is required to close. Typical among them: the buyer's securing of financing and an acceptable house inspection. Generally speaking, an inspection contingency covers a 10-to-14-day period from the acceptance of the contract, and financing contingencies run for 30 days. Yet, be aware, in a seller's market, buyers may be asked to fulfill their contingency requirements in shorter time frames.
Okay, so what does a home inspection involve. In a home inspection, a professional conducts a thorough examination of a property to assess its structural and mechanical condition. The idea here is to catch potential problems that a buyer might not detect.
Finally you will move forward with closing and recieve a "closing statement". This is a document that the Department of Housing and Urban Development requires to account for all financial aspects surrounding the sale and purchase of a home. It provides a list of the funds that were paid at closing. Items include real estate commissions and initial escrow amounts (money or securities deposited). The Real Estate Settlement Procedures Act requires that a copy of the settlement sheet be distributed to both parties at least one day prior to settlement.
Still, before you can close on a house, some paperwork must be completed. This includes a title search (makes sure the title is clear), title insurance (protects the buyer and the lender from an oversight regarding a claim) and an application for homeowner's insurance (necessary for securing a mortgage).
Alright, so here is the question you realy want to know... What are the closing costs? Well, these costs varies, but may include: a loan origination fee, an appraisal fee, the cost of a credit report, a lender's inspection fee, the cost of title insurance, a mortgage broker fee, taxes and a fee for document preparation. Remember, your lender is required to give you prior notice of fees associated with your loan.
So, now the deal is nearing closing, but before the deal is closed and you take possession, you must make some arrangements regarding utility service and first mortgage payment.
An finally, we come to settlement which describes the payment of the balance of the purchase price the buyer owes on the property, and the transfer of the title. Once the title is in your hands, you can now look back and remember the journey, and enjoy your new home.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612
Thursday, October 23, 2008
Mortgage : Understand you financial options : Strongsville Real Estate : Keller Williams Realty
By:
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-23-08
Buying a home is the biggest financial investment most of us will ever make. As with any large project, it requires dealing with a variety of complex issues. The best approach is to divide the process into manageable tasks. The steps are gathering your records, determining what you can afford, and understanding mortgage options.
First and foremost, you should determine how much home you can afford. Most lenders will prequalify you to borrow up to a certain amount. Prequalification allows you to focus in on a realistic price range and makes you a more attractive buyer.
Next, it is a good idea to review your credit report. Contact local lenders to determine which credit bureaus they use. Then contact the credit bureaus and request a copy of your credit report (in most states, credit bureaus are required to provide individuals with a free copy of their report, or just go to freecreditreport.com). Review your report. If you have past credit problems, don't lose hope. Be prepared to present a rationale for each slipup, and demonstrate an improvement in your ability to pay bills on time.
The Federal National Mortgage Association is a government-sponsored organization that purchases mortgages from lenders and sells them to investors. Two income-to-debt ratios are standard requirements for conventional mortgages. The first requirement is that monthly mortgage principal and interest payments (P & I), plus insurance and property taxes, cannot exceed 28% of the buyer's gross monthly income. The second requirement limits total monthly debt payments (housing, credit cards, car payments, etc.) to 36% of gross monthly income. In addition, you may have to pay 10% to 20% down on the total purchase price to qualify for a conventional mortgage.
How much house you can buy also depends on your mortgage's term and interest rate. The term is the length of time payments will be paid (usually 15 or 30 years). The rate can be fixed or adjustable. Thirty-year fixed-rate mortgages remain the most popular. The longer term lowers the monthly payment, while the fixed rate provides stability over the life of the loan. Given relatively low interest rates, these mortgages are attractive to buyers planning to stay at least six or seven years in their new home.
A 15-year term lowers the interest rate, reduces total interest payments, and increases principal payments, but it also increases monthly payments. If you can't afford the higher payments now, you might opt for a 30-year mortgage. Making just one extra monthly payment a year will pay off a 30-year mortgage in less than 22 years and can save tens of thousands of dollars in interest costs.
If you plan to stay in a home no more than three years, you might want an adjustable-rate mortgage (ARM). ARMs offer initial rates that are lower than fixed mortgages. Most ARMs include a cap on rate increases in any given year, as well as over the life of the loan. Some ARMs offer initial rates at least 2% below fixed rates and limit increases to 1% annually and 5% to 6% over the life of the loan. Many home buyers are attracted by the affordability of an ARM during the initial period. However, you should be confident that your future income will be sufficient if both interest rates and your monthly payments increase.
Another popular mortgage involves a balloon payment. A balloon is a lump-sum payment that pays off the loan in full after a fixed period of time. Generally the rates on balloon mortgages are 1/4% to 3/4% less than on 30-year fixed mortgages, but during an initial period of between 3 and 15 years, payments are similar. After this period, the remaining outstanding principal balance is either due in full or subject to refinancing. This is a good option for home buyers who plan to sell before the final payment is due.
So when choosing financing, remember to estimate how long you expect to live in the house, shop around for mortgage rates, and add up all the costs for each lender. Honestly, understanding you options is just the beginning, but it is a great place to start.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-23-08
Buying a home is the biggest financial investment most of us will ever make. As with any large project, it requires dealing with a variety of complex issues. The best approach is to divide the process into manageable tasks. The steps are gathering your records, determining what you can afford, and understanding mortgage options.
First and foremost, you should determine how much home you can afford. Most lenders will prequalify you to borrow up to a certain amount. Prequalification allows you to focus in on a realistic price range and makes you a more attractive buyer.
Next, it is a good idea to review your credit report. Contact local lenders to determine which credit bureaus they use. Then contact the credit bureaus and request a copy of your credit report (in most states, credit bureaus are required to provide individuals with a free copy of their report, or just go to freecreditreport.com). Review your report. If you have past credit problems, don't lose hope. Be prepared to present a rationale for each slipup, and demonstrate an improvement in your ability to pay bills on time.
The Federal National Mortgage Association is a government-sponsored organization that purchases mortgages from lenders and sells them to investors. Two income-to-debt ratios are standard requirements for conventional mortgages. The first requirement is that monthly mortgage principal and interest payments (P & I), plus insurance and property taxes, cannot exceed 28% of the buyer's gross monthly income. The second requirement limits total monthly debt payments (housing, credit cards, car payments, etc.) to 36% of gross monthly income. In addition, you may have to pay 10% to 20% down on the total purchase price to qualify for a conventional mortgage.
How much house you can buy also depends on your mortgage's term and interest rate. The term is the length of time payments will be paid (usually 15 or 30 years). The rate can be fixed or adjustable. Thirty-year fixed-rate mortgages remain the most popular. The longer term lowers the monthly payment, while the fixed rate provides stability over the life of the loan. Given relatively low interest rates, these mortgages are attractive to buyers planning to stay at least six or seven years in their new home.
A 15-year term lowers the interest rate, reduces total interest payments, and increases principal payments, but it also increases monthly payments. If you can't afford the higher payments now, you might opt for a 30-year mortgage. Making just one extra monthly payment a year will pay off a 30-year mortgage in less than 22 years and can save tens of thousands of dollars in interest costs.
If you plan to stay in a home no more than three years, you might want an adjustable-rate mortgage (ARM). ARMs offer initial rates that are lower than fixed mortgages. Most ARMs include a cap on rate increases in any given year, as well as over the life of the loan. Some ARMs offer initial rates at least 2% below fixed rates and limit increases to 1% annually and 5% to 6% over the life of the loan. Many home buyers are attracted by the affordability of an ARM during the initial period. However, you should be confident that your future income will be sufficient if both interest rates and your monthly payments increase.
Another popular mortgage involves a balloon payment. A balloon is a lump-sum payment that pays off the loan in full after a fixed period of time. Generally the rates on balloon mortgages are 1/4% to 3/4% less than on 30-year fixed mortgages, but during an initial period of between 3 and 15 years, payments are similar. After this period, the remaining outstanding principal balance is either due in full or subject to refinancing. This is a good option for home buyers who plan to sell before the final payment is due.
So when choosing financing, remember to estimate how long you expect to live in the house, shop around for mortgage rates, and add up all the costs for each lender. Honestly, understanding you options is just the beginning, but it is a great place to start.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
Understanding Short Sales : Cleveland Real Estate : Keller Williams Realty
By:
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-23-08
Short sales are the most expensive type of transaction, due to the negotiations involved. As a result, it is normal to ask for more commission and reduce your time invested. So, agents must be more selective with the short sales they choose.
Also, your agent and you will need to understand a few concepts in order to have a short sale transaction with a high closing probability. So, let us get started.
Firstly your agent must make sure; there is no secondary financing, liens, or judgments against the property, unless the second is part of a HELOC. Also, that you did not originally defraud the lender by supplying incorrect information to induce the delivery of the loan in the first place. Next, you as the seller are willing and able to throw a few dollars toward the problem. Finally, you care enough about the transaction to cooperate with the paperwork and showings necessary to complete the short sale. This is important because if you, the seller, do not care about your credit nor care about rectifying the situation in a procedure other than a foreclosure, your motivation might wane in cooperating with the many steps necessary for a short sale.
So, what is a short sale, and how does it benefit both parties?
A short sale is when sellers ask the lender to accept less than what is owed because there is not enough equity left after closing costs on a market value sale. The lender does this in return for avoiding the complete foreclosure process.
So, why is this beneficial to the lender? Well, it has been estimated that when a lending institution does implement foreclosure procedures (takes the foreclosure full term, obtains ownership of the property, prepares the property for market, markets the property and sells it), it may net as little as 40 percent of the original appraisal after all costs are considered. In order to alleviate this problem for the lender and save the credit of our clients, we implemented a short sale. The standard practice is to list the property at a price that will generate a loss to the lender after closing costs.
Also note, the lending institution is only interested in negotiating once an offer is received. By pricing this property at market value or a little bit less than market value, we should be able to obtain that offer and send it to the bank for their consideration.
After this, many things will be required. Firstly, a financial disclosure is required by the lender when considering your request for a short payoff. Remember to include all of your discouraging economic news in this financial statement.
Secondly, we will need a letter of explanation telling why you are requesting this short payoff. These may include your reasons for moving, how long the property has been on the market, the failure stories you have had with prior real estate agents, and any other disturbing circumstances that have prevented you from selling the home.
A third item requested is an authorization, and it works on your behalf toward this short payoff, meaning the bank must know that you have authorized your agent to negotiate the terms of the short payoff.
Finally, you are required to submit employment verification, pay stubs, or two years' worth of federal tax returns and verifications of deposits or bank statements for the last three months.
Also, remember, you are not accepting offers from highest offer buyer, but instead from the buyer who is the most motivated. A motivated buyer in this market means that he or she has agreed to put down a much larger than normal deposit and be pre-qualified by a trusted lender. This is a necessity since a short sale may take 60 to 90 days to close. I hope this brings understanding, and wish you all the best of luck in this difficult market.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-23-08
Short sales are the most expensive type of transaction, due to the negotiations involved. As a result, it is normal to ask for more commission and reduce your time invested. So, agents must be more selective with the short sales they choose.
Also, your agent and you will need to understand a few concepts in order to have a short sale transaction with a high closing probability. So, let us get started.
Firstly your agent must make sure; there is no secondary financing, liens, or judgments against the property, unless the second is part of a HELOC. Also, that you did not originally defraud the lender by supplying incorrect information to induce the delivery of the loan in the first place. Next, you as the seller are willing and able to throw a few dollars toward the problem. Finally, you care enough about the transaction to cooperate with the paperwork and showings necessary to complete the short sale. This is important because if you, the seller, do not care about your credit nor care about rectifying the situation in a procedure other than a foreclosure, your motivation might wane in cooperating with the many steps necessary for a short sale.
So, what is a short sale, and how does it benefit both parties?
A short sale is when sellers ask the lender to accept less than what is owed because there is not enough equity left after closing costs on a market value sale. The lender does this in return for avoiding the complete foreclosure process.
So, why is this beneficial to the lender? Well, it has been estimated that when a lending institution does implement foreclosure procedures (takes the foreclosure full term, obtains ownership of the property, prepares the property for market, markets the property and sells it), it may net as little as 40 percent of the original appraisal after all costs are considered. In order to alleviate this problem for the lender and save the credit of our clients, we implemented a short sale. The standard practice is to list the property at a price that will generate a loss to the lender after closing costs.
Also note, the lending institution is only interested in negotiating once an offer is received. By pricing this property at market value or a little bit less than market value, we should be able to obtain that offer and send it to the bank for their consideration.
After this, many things will be required. Firstly, a financial disclosure is required by the lender when considering your request for a short payoff. Remember to include all of your discouraging economic news in this financial statement.
Secondly, we will need a letter of explanation telling why you are requesting this short payoff. These may include your reasons for moving, how long the property has been on the market, the failure stories you have had with prior real estate agents, and any other disturbing circumstances that have prevented you from selling the home.
A third item requested is an authorization, and it works on your behalf toward this short payoff, meaning the bank must know that you have authorized your agent to negotiate the terms of the short payoff.
Finally, you are required to submit employment verification, pay stubs, or two years' worth of federal tax returns and verifications of deposits or bank statements for the last three months.
Also, remember, you are not accepting offers from highest offer buyer, but instead from the buyer who is the most motivated. A motivated buyer in this market means that he or she has agreed to put down a much larger than normal deposit and be pre-qualified by a trusted lender. This is a necessity since a short sale may take 60 to 90 days to close. I hope this brings understanding, and wish you all the best of luck in this difficult market.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
Wednesday, October 22, 2008
Mortgage : DOES PAYING POINTS ON YOUR MORTGAGE MATTER? : Strongsville Real Estate
By:
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-22-08
Points are an investment on which the return consists of lower mortgage payments in the future and a lower loan balance if the loan is paid off before term, which almost all are. The investment makes sense for borrowers who have the money and find the return high enough to be attractive. The standard view is that the borrower's time horizon must be quite long to make points worthwhile -- I have made this statement myself many times. However, when I recently calculated rates of return for different types of mortgages, I found that the standard view holds only for FRMs. On ARMs, the returns are high over periods equal to the initial rate period.
Do most borrowers pass up this opportunity? They do. Borrowers are predisposed against an increase in their cash outlays at closing for a benefit that will accrue in the future. Nobody tells them what the rate of return on investment might be. Often, they aren't even offered the option. Most mortgage brokers and loan officers don't encourage borrowers to pay points. Points make it more difficult for loan officers working for lenders to earn an "overage", a price above the lender's stated price, which the loan officer usually shares with the lender. Similarly, if borrowers pay points for a lower rate, mortgage brokers are forced to disclose their own fees upfront where borrowers can see and possibly question them. The broker can't avoid disclosure when his fee must be added to the points. It is much better to steer the borrower to a loan with a rate high enough that the lender will pay points to get it, referred to as a "yield spread premium," or YSP. Then the broker can pay himself out of the YSP, which existing rules permit to be disclosed in ways that usually mean nothing to the borrower. So, what does this all mean to you? Well, firstly read this article, and then ask you lender the questions you have. Odds are you'll not only become more informed, but you will pick a better financing option for you.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-22-08
Points are an investment on which the return consists of lower mortgage payments in the future and a lower loan balance if the loan is paid off before term, which almost all are. The investment makes sense for borrowers who have the money and find the return high enough to be attractive. The standard view is that the borrower's time horizon must be quite long to make points worthwhile -- I have made this statement myself many times. However, when I recently calculated rates of return for different types of mortgages, I found that the standard view holds only for FRMs. On ARMs, the returns are high over periods equal to the initial rate period.
Do most borrowers pass up this opportunity? They do. Borrowers are predisposed against an increase in their cash outlays at closing for a benefit that will accrue in the future. Nobody tells them what the rate of return on investment might be. Often, they aren't even offered the option. Most mortgage brokers and loan officers don't encourage borrowers to pay points. Points make it more difficult for loan officers working for lenders to earn an "overage", a price above the lender's stated price, which the loan officer usually shares with the lender. Similarly, if borrowers pay points for a lower rate, mortgage brokers are forced to disclose their own fees upfront where borrowers can see and possibly question them. The broker can't avoid disclosure when his fee must be added to the points. It is much better to steer the borrower to a loan with a rate high enough that the lender will pay points to get it, referred to as a "yield spread premium," or YSP. Then the broker can pay himself out of the YSP, which existing rules permit to be disclosed in ways that usually mean nothing to the borrower. So, what does this all mean to you? Well, firstly read this article, and then ask you lender the questions you have. Odds are you'll not only become more informed, but you will pick a better financing option for you.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
Sellers : YOUR HOME AND RETIREMENT: Strongsville Real Estate
By:
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-22-08
Many retirees are planning to access home equity, hoping it may make the difference between a comfortable retirement and just getting by. This article considers some of the strategies for tapping home equity, such as moving to a more affordable residence or obtaining a reverse mortgage.
So, what should you do before you start? Firstly, talk with your spouse or partner about using your home to help finance retirement. Next, consider whether your plans are realistic. For example, ask yourself whether you could really downsize to a smaller home. Also, begin looking into the cost-of-living implications that would be associated with moving to a different part of the country. Finally, check your most recent retirement account statement to determine whether you're already contributing the maximum amount.
Now, onto your home and retirement, unlike earlier generations of retirees, who paid off first mortgages and retired at the family homestead, today's Baby Boomers are looking to capitalize on home equity to enhance their retirement savings. Popular strategies for tapping home equity include downsizing to a smaller house or condominium, relocating to an area where the cost of living is more affordable, and taking out a reverse mortgage.
Regardless of which strategy you choose, it's important to be realistic about what your house may be worth when you retire. Although housing prices have escalated considerably during the past few years, a variety of factors may cause them to level off or decline at some point in the future. Home equity may add value to a diversified portfolio, but relying too much on your house to fund your retirement could work against you if the real estate market in your area cools considerably. Just like the current Ohio market.
Another option is to move. Selling your existing home and relocating to a more affordable house or condominium may be a reasonable option if you have considerable home equity and the shift won't negatively affect your lifestyle. As part of your research, remember to investigate the overall housing costs in your desired area. For example, real estate values and property taxes typically vary considerably by locale, sometimes even within the same state. Additionally, before relocating to a new area, you might want to spend significant time there to make sure it is compatible with your lifestyle and interests.
Furthermore, when calculating your home's sale price as part of the retirement income equation, be sure to use realistic assumptions. Real estate prices have risen at above-average rates in recent years, and there is always the potential that they may level off or even decline in the future. When planning your retirement income, remember the importance of diversification, owning a portfolio of stocks, bonds, and cash investments in addition to home equity can help guard against market swings in any one area, including real estate. Of course, there are no guarantees that a diversified portfolio will protect against overall financial losses, but a diversified portfolio can position you to potentially take advantage of gains in several financial sectors.
In closing, consider the recent boom in the national housing market may have lulled many Baby Boomers into believing their home equity will be enough to see them through a comfortable retirement. If you're among those who intend to rely on a home's value -- either through downsizing, relocating, or obtaining a reverse mortgage -- make sure that your plans include realistic projections. And remember that maintaining a diversified portfolio of other types of investments can potentially help balance out your overall pool of financial assets. Aside from all this, if you plan right that dream house on the beach under the sun may still be yours.
For More Information!
Check Out Our Website :
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-22-08
Many retirees are planning to access home equity, hoping it may make the difference between a comfortable retirement and just getting by. This article considers some of the strategies for tapping home equity, such as moving to a more affordable residence or obtaining a reverse mortgage.
So, what should you do before you start? Firstly, talk with your spouse or partner about using your home to help finance retirement. Next, consider whether your plans are realistic. For example, ask yourself whether you could really downsize to a smaller home. Also, begin looking into the cost-of-living implications that would be associated with moving to a different part of the country. Finally, check your most recent retirement account statement to determine whether you're already contributing the maximum amount.
Now, onto your home and retirement, unlike earlier generations of retirees, who paid off first mortgages and retired at the family homestead, today's Baby Boomers are looking to capitalize on home equity to enhance their retirement savings. Popular strategies for tapping home equity include downsizing to a smaller house or condominium, relocating to an area where the cost of living is more affordable, and taking out a reverse mortgage.
Regardless of which strategy you choose, it's important to be realistic about what your house may be worth when you retire. Although housing prices have escalated considerably during the past few years, a variety of factors may cause them to level off or decline at some point in the future. Home equity may add value to a diversified portfolio, but relying too much on your house to fund your retirement could work against you if the real estate market in your area cools considerably. Just like the current Ohio market.
Another option is to move. Selling your existing home and relocating to a more affordable house or condominium may be a reasonable option if you have considerable home equity and the shift won't negatively affect your lifestyle. As part of your research, remember to investigate the overall housing costs in your desired area. For example, real estate values and property taxes typically vary considerably by locale, sometimes even within the same state. Additionally, before relocating to a new area, you might want to spend significant time there to make sure it is compatible with your lifestyle and interests.
Furthermore, when calculating your home's sale price as part of the retirement income equation, be sure to use realistic assumptions. Real estate prices have risen at above-average rates in recent years, and there is always the potential that they may level off or even decline in the future. When planning your retirement income, remember the importance of diversification, owning a portfolio of stocks, bonds, and cash investments in addition to home equity can help guard against market swings in any one area, including real estate. Of course, there are no guarantees that a diversified portfolio will protect against overall financial losses, but a diversified portfolio can position you to potentially take advantage of gains in several financial sectors.
In closing, consider the recent boom in the national housing market may have lulled many Baby Boomers into believing their home equity will be enough to see them through a comfortable retirement. If you're among those who intend to rely on a home's value -- either through downsizing, relocating, or obtaining a reverse mortgage -- make sure that your plans include realistic projections. And remember that maintaining a diversified portfolio of other types of investments can potentially help balance out your overall pool of financial assets. Aside from all this, if you plan right that dream house on the beach under the sun may still be yours.
For More Information!
Check Out Our Website :
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612
Tuesday, October 21, 2008
Title : WHAT IS TITLE INSURANCE? : Strongsville Real Estate
By:
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-21-08
Real estate has traditionally been a family's most valuable asset. It is a form of wealth that is protected by many laws. These laws have been enacted to protect one's ownership of real estate and the improvements located on the land. The owner, the owner's family, and the owner's heirs have extremely big rights or claims in and to the property that you are buying. Those who may have an interest in or lien upon the property could be governmental bodies, contractors, lenders, judgment creditors, the Internal Revenue Service, or various other individuals or corporations. The real estate may be sold to you without the knowledge of the party having a right or claim in and to the property. In addition, you may purchase the real estate without having any knowledge of these rights or claims. In either event, these rights or claims remain attached to the title to the property that you are binding until they are extinguished.
Generally, a person thinks of insurance in terms of the payment of future loss due to the occurrence of some future event. For instance, a party obtains automobile insurance in order to pay for future loss occasioned by a future "fender bender" or for the future theft of the car. Title insurance is a unique form of insurance. It provides coverage for future claims or future losses due to title defects which are created by some past event. These risks are far less obvious than those protected against by automobile insurance, but can be just as or more devastating. The following information will answer some commonly asked questions about title insurance.
So, will you get clear title? It is of utmost importance that you receive clear title to the property when you purchase real estate. In order to do so, you must first be informed of any existing rights or claims that may, in the future, threaten your title and possession to the property. Title insurance provides you with this twofold protection.
How do you find out what claims exist? In order to determine the status of title, your title company conducts a diligent search of the public records for those documents associated with the property. They then examines those recorded documents in order to determine if there are any rights or claims that may have an impact upon the title to the property. The title search may reveal the existence of recorded defects, liens or encumbrances upon the title such as unpaid taxes, unsatisfied mortgages, judgments and tax liens against the current or past owners, easements, restrictions and court actions. These recorded defects, liens and encumbrances are reported to you prior to your purchase of the property. Once reported, these matters can be accepted, resolved or extinguished prior to the closing of the transaction. In addition, you are protected against any recorded defects, liens or encumbrances upon the title that are unreported to you and which are within the coverage of the particular policy issued in the transaction. This is the first benefit you receive from title insurance.
So, you understand a little bit more about known claims, but what about undiscovered claims? The title to the property that you have purchased could be seriously threatened or lost completely by hazards which are considered "hidden risks." "Hidden Risks" are those matters, rights or claims that are not shown by the public records and, therefore, are not discoverable by a search and examination of those public records. Matters such as forgery, incompetency or incapacity of the parties, fraudulent impersonation, and unknown errors in the records are examples of "hidden risks" which could provide a basis for a claim after you have purchased the property. In order to protect you against this possibility your title company provides insurance coverage for such claims. This is the second benefit you receive from title insurance.
How exactly does a title insurance company protect against these claims? If a claim is made against your insured title, your title company protects you by: Defending your title, in court if necessary, at no cost to you, and bearing the cost of settling the case, if it proves valid, in order to protect your title and maintain your possession of your property.
Now what does title insurance do? It protects your assets! Title insurance gives you the assurance that possible clouds on title to the property you are purchasing - which can be discovered from the public records - have been called to your attention that such defects can be corrected before you buy. Additionally, it is insurance that if any undiscovered claims covered by your policy arises out of the past to threaten your ownership of real estate, it will be disposed of, or you will be reimbursed exactly as your title insurance policy provides.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-21-08
Real estate has traditionally been a family's most valuable asset. It is a form of wealth that is protected by many laws. These laws have been enacted to protect one's ownership of real estate and the improvements located on the land. The owner, the owner's family, and the owner's heirs have extremely big rights or claims in and to the property that you are buying. Those who may have an interest in or lien upon the property could be governmental bodies, contractors, lenders, judgment creditors, the Internal Revenue Service, or various other individuals or corporations. The real estate may be sold to you without the knowledge of the party having a right or claim in and to the property. In addition, you may purchase the real estate without having any knowledge of these rights or claims. In either event, these rights or claims remain attached to the title to the property that you are binding until they are extinguished.
Generally, a person thinks of insurance in terms of the payment of future loss due to the occurrence of some future event. For instance, a party obtains automobile insurance in order to pay for future loss occasioned by a future "fender bender" or for the future theft of the car. Title insurance is a unique form of insurance. It provides coverage for future claims or future losses due to title defects which are created by some past event. These risks are far less obvious than those protected against by automobile insurance, but can be just as or more devastating. The following information will answer some commonly asked questions about title insurance.
So, will you get clear title? It is of utmost importance that you receive clear title to the property when you purchase real estate. In order to do so, you must first be informed of any existing rights or claims that may, in the future, threaten your title and possession to the property. Title insurance provides you with this twofold protection.
How do you find out what claims exist? In order to determine the status of title, your title company conducts a diligent search of the public records for those documents associated with the property. They then examines those recorded documents in order to determine if there are any rights or claims that may have an impact upon the title to the property. The title search may reveal the existence of recorded defects, liens or encumbrances upon the title such as unpaid taxes, unsatisfied mortgages, judgments and tax liens against the current or past owners, easements, restrictions and court actions. These recorded defects, liens and encumbrances are reported to you prior to your purchase of the property. Once reported, these matters can be accepted, resolved or extinguished prior to the closing of the transaction. In addition, you are protected against any recorded defects, liens or encumbrances upon the title that are unreported to you and which are within the coverage of the particular policy issued in the transaction. This is the first benefit you receive from title insurance.
So, you understand a little bit more about known claims, but what about undiscovered claims? The title to the property that you have purchased could be seriously threatened or lost completely by hazards which are considered "hidden risks." "Hidden Risks" are those matters, rights or claims that are not shown by the public records and, therefore, are not discoverable by a search and examination of those public records. Matters such as forgery, incompetency or incapacity of the parties, fraudulent impersonation, and unknown errors in the records are examples of "hidden risks" which could provide a basis for a claim after you have purchased the property. In order to protect you against this possibility your title company provides insurance coverage for such claims. This is the second benefit you receive from title insurance.
How exactly does a title insurance company protect against these claims? If a claim is made against your insured title, your title company protects you by: Defending your title, in court if necessary, at no cost to you, and bearing the cost of settling the case, if it proves valid, in order to protect your title and maintain your possession of your property.
Now what does title insurance do? It protects your assets! Title insurance gives you the assurance that possible clouds on title to the property you are purchasing - which can be discovered from the public records - have been called to your attention that such defects can be corrected before you buy. Additionally, it is insurance that if any undiscovered claims covered by your policy arises out of the past to threaten your ownership of real estate, it will be disposed of, or you will be reimbursed exactly as your title insurance policy provides.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
Title : WHY DO YOU NEED TITLE INSURANCE? : Strongsville Real Estate
By:
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-21-08
The first and foremost reason is to protect possibly the most important investment you'll ever make - the investment in your home. With a title insurance policy, you as the owner, have an indemnity contract that will reimburse you for loss in the event someone asserts a claim against your property that is covered by the policy.
So, now you might be interested to know, how can there be a title defect if the title has been searched. Well, title insurance is issued after a careful examination of copies of the public records. But even the most thorough search cannot absolutely assure that no title hazards are present, despite the knowledge and experience of professional title examiners. In addition to matters shown by public records, other title problems may exist that cannot be disclosed in a search.
Okay, so what does title insurance protect against? Here are just a few of the most common hidden risks that can cause a loss of title or create an encumbrance on title: False impersonation of the true owner of the property; forged deed, releases or wills; instruments executed under invalid or expired power of attorney;
undisclosed or missing heirs; mistakes in recording legal documents; misinterpretations of wills Deeds by persons of unsound mind; deeds by minors; deeds by persons supposedly single, but in fact married; fraud; and liens for unpaid estate, inheritance, income or gift taxes.
With this in mind, what protection does title insurance provide against defects and hidden risks? Title insurance will pay for defending against any lawsuit attacking your title as insured, and will either clear up title problems or pay the insured's losses. For a one-time premium, an owner's title insurance policy remains in effect as long as you, or your heirs, retain an interest in the property. This gives you, the homeowner, the peace of mind in knowing that the investment you've made in your home is a safe one. So, get informed and make sure title insurance is one of your main concerns in your next purchase.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-21-08
The first and foremost reason is to protect possibly the most important investment you'll ever make - the investment in your home. With a title insurance policy, you as the owner, have an indemnity contract that will reimburse you for loss in the event someone asserts a claim against your property that is covered by the policy.
So, now you might be interested to know, how can there be a title defect if the title has been searched. Well, title insurance is issued after a careful examination of copies of the public records. But even the most thorough search cannot absolutely assure that no title hazards are present, despite the knowledge and experience of professional title examiners. In addition to matters shown by public records, other title problems may exist that cannot be disclosed in a search.
Okay, so what does title insurance protect against? Here are just a few of the most common hidden risks that can cause a loss of title or create an encumbrance on title: False impersonation of the true owner of the property; forged deed, releases or wills; instruments executed under invalid or expired power of attorney;
undisclosed or missing heirs; mistakes in recording legal documents; misinterpretations of wills Deeds by persons of unsound mind; deeds by minors; deeds by persons supposedly single, but in fact married; fraud; and liens for unpaid estate, inheritance, income or gift taxes.
With this in mind, what protection does title insurance provide against defects and hidden risks? Title insurance will pay for defending against any lawsuit attacking your title as insured, and will either clear up title problems or pay the insured's losses. For a one-time premium, an owner's title insurance policy remains in effect as long as you, or your heirs, retain an interest in the property. This gives you, the homeowner, the peace of mind in knowing that the investment you've made in your home is a safe one. So, get informed and make sure title insurance is one of your main concerns in your next purchase.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
Monday, October 20, 2008
Title: REASONS FOR TITLE INSURANCE: Strongsville Real Estate
By:
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-20-08
Every home owner should be aware if they are not already, that buying property is a numbers business. This means that the smart homeowner/investor should not only put in the time to know where their current home expenses occur, but should also be aware of the possible risks and expenses they may take on in the future. With this in mind, below is a list of possible situations I feel you should be aware of, and know how to protect yourself and your home against.
Number one, a fire destroys only the house and improvements. The ground is left. In this scenario, a defective title may take away not the only the house but also the land on which it stands. Title insurance protects you against such loss. Other situations to consider with your deed or mortgage consist of: forgery, signing by a person under age, it was made by an insane person or one otherwise incompetent person, it may have been made under a power of attorney after its termination and would, therefore, be void, it may have been made by a person other than the owner, but with the same name as the owner, the testator of a will might have had a child born after the execution of the will, a fact that would entitle the child to claim his or her share of the property, it may have been procured by fraud or duress, it is subject to a federal estate tax lien, a judgment or levy upon which the title is dependent may be void or voidable on account of some defect in the proceeding ad the list goes on. Yet, don't fret over this, just prepare and protect yourself by making the necessary steps by making sure you have title insurance.
Furthermore, I would hope you never have a title claim. Yet, Americans have the future in mind when they buy a house, and they purchase homeowner's insurance to help protect that future. But with home ownership comes the need to protect the property against the past, as well as the future. Title insurance protects a policyholder against challenges to rightful ownership of real property, challenges that arise from circumstances of past ownerships. Each successive owner brings the possibility of title challenges to the property. When you purchase real property, rely on your title company to protect your interests. This is their job, and should make you life much easier.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-20-08
Every home owner should be aware if they are not already, that buying property is a numbers business. This means that the smart homeowner/investor should not only put in the time to know where their current home expenses occur, but should also be aware of the possible risks and expenses they may take on in the future. With this in mind, below is a list of possible situations I feel you should be aware of, and know how to protect yourself and your home against.
Number one, a fire destroys only the house and improvements. The ground is left. In this scenario, a defective title may take away not the only the house but also the land on which it stands. Title insurance protects you against such loss. Other situations to consider with your deed or mortgage consist of: forgery, signing by a person under age, it was made by an insane person or one otherwise incompetent person, it may have been made under a power of attorney after its termination and would, therefore, be void, it may have been made by a person other than the owner, but with the same name as the owner, the testator of a will might have had a child born after the execution of the will, a fact that would entitle the child to claim his or her share of the property, it may have been procured by fraud or duress, it is subject to a federal estate tax lien, a judgment or levy upon which the title is dependent may be void or voidable on account of some defect in the proceeding ad the list goes on. Yet, don't fret over this, just prepare and protect yourself by making the necessary steps by making sure you have title insurance.
Furthermore, I would hope you never have a title claim. Yet, Americans have the future in mind when they buy a house, and they purchase homeowner's insurance to help protect that future. But with home ownership comes the need to protect the property against the past, as well as the future. Title insurance protects a policyholder against challenges to rightful ownership of real property, challenges that arise from circumstances of past ownerships. Each successive owner brings the possibility of title challenges to the property. When you purchase real property, rely on your title company to protect your interests. This is their job, and should make you life much easier.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
Mortgage: HOW TO AVOID A SUBPRIME MORTGAGE: Cleveland Real Estate
By:
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-20-08
So, what exactly does subprime mean anyway? Well, subprime references the borrower's credit rating, so the easiest way to avoid getting a subprime loan is to have a prime credit rating.
Don't know your credit rating? I suggest you take a journey online and do some research then. There are many available credit scoring sources online. For example, Bankrate.com offers a FICO score estimator to get a free estimate or pay for your credit score from one or more of the three main credit bureaus -- Equifax, Experian or TransUnion. So, make this step first.
Some other things to avoid include no-equity loans, no-documentation loans or ninja loans. A ninja loan is slang in the mortgage industry for no-income/no job -- the mortgage applicant doesn't document his or her income or employment. Sound familiar to some of the lending fraud articles you may have read recently, well it should.
The harsh reality is that subprime lenders and borrowers counted on rising home prices and low interest rates to finesse traditional underwriting standards for mortgage lending, allowing home buyers to stretch in qualifying for financing. Seventeen rate increases by the Federal Reserve in its targeted federal funds rate and a stalled reality market later, should we be surprised that some subprime loans are unraveling?
So, before you start, there are a few things you should consider. Firstly, take a fresh look at your household budget to determine how much you can spend on a mortgage each month. Next, request free copies of your credit report. Finally, educate yourself, you can't expect not to face a bad outcome unless you familiarize yourself with all of the variables generally associated with financing a home, such as interest rate policies, terms, points, fees, etc. This means, check into how to guides, play with some online mortgage calculators, and most importantly read a few articles that pertain to today's landing market. You will be happy you did.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-20-08
So, what exactly does subprime mean anyway? Well, subprime references the borrower's credit rating, so the easiest way to avoid getting a subprime loan is to have a prime credit rating.
Don't know your credit rating? I suggest you take a journey online and do some research then. There are many available credit scoring sources online. For example, Bankrate.com offers a FICO score estimator to get a free estimate or pay for your credit score from one or more of the three main credit bureaus -- Equifax, Experian or TransUnion. So, make this step first.
Some other things to avoid include no-equity loans, no-documentation loans or ninja loans. A ninja loan is slang in the mortgage industry for no-income/no job -- the mortgage applicant doesn't document his or her income or employment. Sound familiar to some of the lending fraud articles you may have read recently, well it should.
The harsh reality is that subprime lenders and borrowers counted on rising home prices and low interest rates to finesse traditional underwriting standards for mortgage lending, allowing home buyers to stretch in qualifying for financing. Seventeen rate increases by the Federal Reserve in its targeted federal funds rate and a stalled reality market later, should we be surprised that some subprime loans are unraveling?
So, before you start, there are a few things you should consider. Firstly, take a fresh look at your household budget to determine how much you can spend on a mortgage each month. Next, request free copies of your credit report. Finally, educate yourself, you can't expect not to face a bad outcome unless you familiarize yourself with all of the variables generally associated with financing a home, such as interest rate policies, terms, points, fees, etc. This means, check into how to guides, play with some online mortgage calculators, and most importantly read a few articles that pertain to today's landing market. You will be happy you did.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
Sunday, October 19, 2008
Mortgage: TODAY’S CHAOS WITH ARMs : Cleveland Real Estate
By:
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-19-08
In recent weeks, online articles have overflowed with messages of distress from borrowers faced with an imminent rate adjustment on their adjustable-rate mortgages (ARMs). Most of them want to refinance, but many of those who had earlier taken 100 percent loans are stuck. With the current softness in the housing market, they now owe more than their homes are worth. Lenders are strongly resistant to refinancing loans with balances exceeding property values.
Furthermore, a great majority of the borrowers don't have a clue as to exactly what is going to happen to their ARM rate. They know it is going to go up but have no idea how much. Many of them assume that it is worse than it actually is, perhaps because this gives them an excuse for not doing anything to prepare.
So, if this describes you, it is time to shake the sand out of your eyes. While you can't know exactly what your ARM rate will be on the adjustment date you can know what your ARM rate would be if the adjustment occurred today. Call this the current projected rate, or CPR. As the adjustment date gets closer, the CPR becomes an increasingly good estimate of the actual rate on the adjustment date. You use the CPR to plan your next move.
In order to calculate the CPR, you need four pieces of information from your note. Piece one is the interest rate index to which your ARM rate is tied. Indexes have names like COFI, Libor, CMT, MTA, CODI, and Prime Rate. When you have identified the one used by your ARM, go to http://www.mortgage-x.com/ and find its most recent value. Piece two is the margin, which is the amount added to the index to determine your rate. This is the critically important number because it varies so widely, from 0.75 percent to 7 percent or more. Because it is not a required disclosure, most ARM borrowers don't know what it is until they are hit with a rate adjustment.
The other two pieces of information you need from the note are the adjustment cap, which limits the size of a rate change, and the lifetime maximum rate. Not all ARMs have adjustment caps, but they all have maximum rates.
Sadly, articles such as this one would not have to be written if the lenders servicing ARMs reported the CPR every month, along with the payment associated with it. They calculate it now, but only for the month preceding a rate adjustment. It would be quite simple to do it every month so that borrowers always knew where they stood and had time to prepare for what they saw coming. So, in today's market I call on you to start relying more on yourself when it comes to making yourself aware of your finances. It is a sad reality that many people are too lazy to do this, but they feel like they need someone to blame when it bites them in the a##. So, I ask you to hold yourself accountable and make sure to ask the right questions.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-19-08
In recent weeks, online articles have overflowed with messages of distress from borrowers faced with an imminent rate adjustment on their adjustable-rate mortgages (ARMs). Most of them want to refinance, but many of those who had earlier taken 100 percent loans are stuck. With the current softness in the housing market, they now owe more than their homes are worth. Lenders are strongly resistant to refinancing loans with balances exceeding property values.
Furthermore, a great majority of the borrowers don't have a clue as to exactly what is going to happen to their ARM rate. They know it is going to go up but have no idea how much. Many of them assume that it is worse than it actually is, perhaps because this gives them an excuse for not doing anything to prepare.
So, if this describes you, it is time to shake the sand out of your eyes. While you can't know exactly what your ARM rate will be on the adjustment date you can know what your ARM rate would be if the adjustment occurred today. Call this the current projected rate, or CPR. As the adjustment date gets closer, the CPR becomes an increasingly good estimate of the actual rate on the adjustment date. You use the CPR to plan your next move.
In order to calculate the CPR, you need four pieces of information from your note. Piece one is the interest rate index to which your ARM rate is tied. Indexes have names like COFI, Libor, CMT, MTA, CODI, and Prime Rate. When you have identified the one used by your ARM, go to http://www.mortgage-x.com/ and find its most recent value. Piece two is the margin, which is the amount added to the index to determine your rate. This is the critically important number because it varies so widely, from 0.75 percent to 7 percent or more. Because it is not a required disclosure, most ARM borrowers don't know what it is until they are hit with a rate adjustment.
The other two pieces of information you need from the note are the adjustment cap, which limits the size of a rate change, and the lifetime maximum rate. Not all ARMs have adjustment caps, but they all have maximum rates.
Sadly, articles such as this one would not have to be written if the lenders servicing ARMs reported the CPR every month, along with the payment associated with it. They calculate it now, but only for the month preceding a rate adjustment. It would be quite simple to do it every month so that borrowers always knew where they stood and had time to prepare for what they saw coming. So, in today's market I call on you to start relying more on yourself when it comes to making yourself aware of your finances. It is a sad reality that many people are too lazy to do this, but they feel like they need someone to blame when it bites them in the a##. So, I ask you to hold yourself accountable and make sure to ask the right questions.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
Mortgage : THE HOW TOS OF THE MORTGAGE MARKET: Strongsville Real Estate
By:
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-19-08
Buying a home is the biggest financial investment most of us will ever make. As with any large project or goal, it requires dealing with a variety of complex issues. The best approach is to divide the process into manageable tasks. The following deals with the first steps of gathering your records, determining what you can afford, and understanding mortgage options.
The first step you should take is to put your own finances back in order. Before you go looking for a home, you should determine how much home you can afford. Most lenders will prequalify you to borrow up to a certain amount. Prequalification allows you to focus in on a realistic price range and makes you a more attractive buyer. Whether or not you want to prequalify, eventually you'll need to complete a loan application and it may take some time to gather and assemble the required information.
Next, know your credit. It's a good idea to review your credit report. Contact local lenders to determine which credit bureaus they use. Then contact the credit bureaus and request a copy of your credit report. Review your report to ensure that all information is correct. If you have past credit problems, don't lose hope. Be prepared to present a rationale for each slipup, and demonstrate an improvement in your ability to pay bills on time.
So, how much can you afford? The Federal National Mortgage Association (Fannie Mae) is a government-sponsored organization that purchases mortgages from lenders and sells them to investors. Two income-to-debt ratios established by Fannie Mae are standard requirements for conventional mortgages. The first requirement is that monthly mortgage principal and interest payments (P&I), plus insurance and property taxes, cannot exceed 28% of the buyer's gross monthly income. The second requirement limits total monthly debt payments (housing, credit cards, car payments, etc.) to 36% of gross monthly income. In addition to these requirements, you may have to pay 10% to 20% down on the total purchase price to qualify for a conventional mortgage. This is when you ask for the assistance of your lender, and you find out what amount of mortgage you can afford with the income and expenses you hold.
Okay so now you will know where you budget is and what you can afford, but what types of financing options are available to you? Well, how much house you can buy also depends on your mortgage's term and interest rate. The term is the length of time (usually 15 or 30 years) over which payments will be paid. The rate can be fixed (meaning it doesn't change over the loan's term) or adjustable (it fluctuates with market conditions). Thirty-year fixed-rate mortgages remain the most popular. The longer term lowers the monthly payment, while the fixed rate provides stability over the life of the loan. Given relatively low interest rates, these mortgages are attractive to buyers planning to stay at least six or seven years in their new home. The drawbacks are low principal payments in the early years, and the risk that market rates will decline over the term. However, if your credit history is sound and you have sufficient income, you can usually refinance your mortgage when rates decline. Furthermore, just because you have financed with a 30 year mortgage does not mean you have to pay it like one. By doing as such you have given yourself the leniencies to pay it like a 30 or a 15.
Still, a 15-year term lowers the interest rate, reduces total interest payments, and increases principal payments. But it also increases monthly payments. If you can't afford the higher payments now, you might opt for a 30-year mortgage. If there are no prepayment penalties, you can make additional principal payments as your income increases. Making just one extra monthly payment a year will pay off a 30-year mortgage in less than 22 years and can save tens of thousands of dollars in interest costs. If you plan to stay in a home no more than three years, you might want an adjustable-rate mortgage (ARM). ARMs offer initial rates that are lower than fixed mortgages. At some point, usually after the first year, rates are tied to market conditions and are subject to potential rate increases. Most ARMs include a cap on rate increases in any given year, as well as over the life of the loan. However, you should be confident that your future income will be sufficient if both interest rates and your monthly payments increase.
Another popular mortgage involves a balloon payment. A balloon is a lump-sum payment that pays off the loan in full after a fixed period of time. Generally the rates on balloon mortgages are 1/4% to 3/4% less than on 30-year fixed mortgages, but during an initial period of between 3 and 15 years, payments are similar. After this period, the remaining outstanding principal balance is either due in full or subject to refinancing. This is a good option for home buyers who plan to sell before the final payment is due. But because property values fluctuate, you may not be able to sell when you want. You may also face higher payments if you are forced to refinance at a higher rate, and there is also a risk that you may not be in a position to refinance when the balloon becomes due.
So, now you should have an idea of what types of mortgages are available to you even before you step in your lenders door. Yet, you should always consider how long you expect to live in the residence as well as shop around for the best rate for you. Remember don't be afraid to ask you lender questions they should be able to help better in from you and this can result in saving you more to put back into you budget.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-19-08
Buying a home is the biggest financial investment most of us will ever make. As with any large project or goal, it requires dealing with a variety of complex issues. The best approach is to divide the process into manageable tasks. The following deals with the first steps of gathering your records, determining what you can afford, and understanding mortgage options.
The first step you should take is to put your own finances back in order. Before you go looking for a home, you should determine how much home you can afford. Most lenders will prequalify you to borrow up to a certain amount. Prequalification allows you to focus in on a realistic price range and makes you a more attractive buyer. Whether or not you want to prequalify, eventually you'll need to complete a loan application and it may take some time to gather and assemble the required information.
Next, know your credit. It's a good idea to review your credit report. Contact local lenders to determine which credit bureaus they use. Then contact the credit bureaus and request a copy of your credit report. Review your report to ensure that all information is correct. If you have past credit problems, don't lose hope. Be prepared to present a rationale for each slipup, and demonstrate an improvement in your ability to pay bills on time.
So, how much can you afford? The Federal National Mortgage Association (Fannie Mae) is a government-sponsored organization that purchases mortgages from lenders and sells them to investors. Two income-to-debt ratios established by Fannie Mae are standard requirements for conventional mortgages. The first requirement is that monthly mortgage principal and interest payments (P&I), plus insurance and property taxes, cannot exceed 28% of the buyer's gross monthly income. The second requirement limits total monthly debt payments (housing, credit cards, car payments, etc.) to 36% of gross monthly income. In addition to these requirements, you may have to pay 10% to 20% down on the total purchase price to qualify for a conventional mortgage. This is when you ask for the assistance of your lender, and you find out what amount of mortgage you can afford with the income and expenses you hold.
Okay so now you will know where you budget is and what you can afford, but what types of financing options are available to you? Well, how much house you can buy also depends on your mortgage's term and interest rate. The term is the length of time (usually 15 or 30 years) over which payments will be paid. The rate can be fixed (meaning it doesn't change over the loan's term) or adjustable (it fluctuates with market conditions). Thirty-year fixed-rate mortgages remain the most popular. The longer term lowers the monthly payment, while the fixed rate provides stability over the life of the loan. Given relatively low interest rates, these mortgages are attractive to buyers planning to stay at least six or seven years in their new home. The drawbacks are low principal payments in the early years, and the risk that market rates will decline over the term. However, if your credit history is sound and you have sufficient income, you can usually refinance your mortgage when rates decline. Furthermore, just because you have financed with a 30 year mortgage does not mean you have to pay it like one. By doing as such you have given yourself the leniencies to pay it like a 30 or a 15.
Still, a 15-year term lowers the interest rate, reduces total interest payments, and increases principal payments. But it also increases monthly payments. If you can't afford the higher payments now, you might opt for a 30-year mortgage. If there are no prepayment penalties, you can make additional principal payments as your income increases. Making just one extra monthly payment a year will pay off a 30-year mortgage in less than 22 years and can save tens of thousands of dollars in interest costs. If you plan to stay in a home no more than three years, you might want an adjustable-rate mortgage (ARM). ARMs offer initial rates that are lower than fixed mortgages. At some point, usually after the first year, rates are tied to market conditions and are subject to potential rate increases. Most ARMs include a cap on rate increases in any given year, as well as over the life of the loan. However, you should be confident that your future income will be sufficient if both interest rates and your monthly payments increase.
Another popular mortgage involves a balloon payment. A balloon is a lump-sum payment that pays off the loan in full after a fixed period of time. Generally the rates on balloon mortgages are 1/4% to 3/4% less than on 30-year fixed mortgages, but during an initial period of between 3 and 15 years, payments are similar. After this period, the remaining outstanding principal balance is either due in full or subject to refinancing. This is a good option for home buyers who plan to sell before the final payment is due. But because property values fluctuate, you may not be able to sell when you want. You may also face higher payments if you are forced to refinance at a higher rate, and there is also a risk that you may not be in a position to refinance when the balloon becomes due.
So, now you should have an idea of what types of mortgages are available to you even before you step in your lenders door. Yet, you should always consider how long you expect to live in the residence as well as shop around for the best rate for you. Remember don't be afraid to ask you lender questions they should be able to help better in from you and this can result in saving you more to put back into you budget.
For More Information!
Check Out Our Website:
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
Saturday, October 18, 2008
Buyers : IN TODAY’S MARKET, A SMALL HOME CAN BE A GOOD FIT: Strongsville Real Estate
By:
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-18-08
Today, the average homeowner is frustrated by the size of their home. The reasons extend from inability to finance up all the way to difficulty in maintenance. Yet, instead of feeling cramped, a growing number of Americans are finding they have more home than they want or need. The reasons are numerous.
Baby boomers, 77 million strong, are looking to downsize in retirement. Young homebuyers are finding it increasingly difficult to afford or maintain larger homes. Urban land is at a premium. Plus, smaller homes in desirable neighborhoods are scarce or outlawed by covenant. Still, that doesn't necessarily mean that smaller times are ahead for everyone.
For growing families, some investors, the wealthy or homeowners who just want the bigger home, the market will most likely begin to look up. Although, for homeowners who no longer wish to pay taxes, utilities and insurance on rooms they never use, or who simply find a smaller home more comfortable and aesthetically pleasing, the small-house movement is quietly reinventing the U.S. scale of living.
Since, Americans quickly came to believe that more square footage paid for itself in resale, especially during the run-up of housing prices in the last decade. Since 1970, the average American home has grown from 1,500 square feet to the current average of 2,450 square feet, according to the National Association of Home Builders. Still, we see this has become a large problem especially in Ohio where foreclosure rates are averaging around 20 percent. So, what is the average buyer supposed think?
Well, if it has not set in yet, I will tell you. Think smaller at least when it comes to you next purchase. Even though the market of 2007 has been a poor sight, it should be looked upon as somewhat of a gift. A market like this not only helps buyers reevaluate their expenses, but also gives the average buyer the ability to invest in some great buys that if bought right will not only save the average person money, but will hopefully make them money too. So with this in mind, what values does a small home really offer?
Firstly, small home tend to rank high when it comes to energy efficiency. Saving money here is often a great opportunity to not only buy more of what you want and need, but also an opportunity to put money in the bank for better days. Secondly, expandability comes to mind. Buying a smaller home enables the average buyer to have the money to invest in that extra addition to add value to their purchase physically as well as personally. Now is the time to invest in additions that give your home value according to you. The main emphasis to today's buyer is to look at "quality over quantity", and don't always look at bad times negatively, because it could just be a gift in disguise.
For More Information!
Check Out Our Website :
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or just call my cell phone at 440.336.0612
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-18-08
Today, the average homeowner is frustrated by the size of their home. The reasons extend from inability to finance up all the way to difficulty in maintenance. Yet, instead of feeling cramped, a growing number of Americans are finding they have more home than they want or need. The reasons are numerous.
Baby boomers, 77 million strong, are looking to downsize in retirement. Young homebuyers are finding it increasingly difficult to afford or maintain larger homes. Urban land is at a premium. Plus, smaller homes in desirable neighborhoods are scarce or outlawed by covenant. Still, that doesn't necessarily mean that smaller times are ahead for everyone.
For growing families, some investors, the wealthy or homeowners who just want the bigger home, the market will most likely begin to look up. Although, for homeowners who no longer wish to pay taxes, utilities and insurance on rooms they never use, or who simply find a smaller home more comfortable and aesthetically pleasing, the small-house movement is quietly reinventing the U.S. scale of living.
Since, Americans quickly came to believe that more square footage paid for itself in resale, especially during the run-up of housing prices in the last decade. Since 1970, the average American home has grown from 1,500 square feet to the current average of 2,450 square feet, according to the National Association of Home Builders. Still, we see this has become a large problem especially in Ohio where foreclosure rates are averaging around 20 percent. So, what is the average buyer supposed think?
Well, if it has not set in yet, I will tell you. Think smaller at least when it comes to you next purchase. Even though the market of 2007 has been a poor sight, it should be looked upon as somewhat of a gift. A market like this not only helps buyers reevaluate their expenses, but also gives the average buyer the ability to invest in some great buys that if bought right will not only save the average person money, but will hopefully make them money too. So with this in mind, what values does a small home really offer?
Firstly, small home tend to rank high when it comes to energy efficiency. Saving money here is often a great opportunity to not only buy more of what you want and need, but also an opportunity to put money in the bank for better days. Secondly, expandability comes to mind. Buying a smaller home enables the average buyer to have the money to invest in that extra addition to add value to their purchase physically as well as personally. Now is the time to invest in additions that give your home value according to you. The main emphasis to today's buyer is to look at "quality over quantity", and don't always look at bad times negatively, because it could just be a gift in disguise.
For More Information!
Check Out Our Website :
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or just call my cell phone at 440.336.0612
Buyers : ACQUIRING A BARGAIN HOME IN TODAY’S MARKET: Strongsville Real Estate
By:
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-18-08
Whether you want to buy a house for personal use or as an investment, the first step is knowing how to cope with today's market. So, what are we dealing with in today's market?
Currently, we are facing what I like to call slump in the housing market. Sellers are in disbelief as to what their home is currently valued at, and buyers are taking full advantage of the excess supply and offering low to dismal bids in order to find the seller who is willing to jump. Which is reality, I am sure it is not what most people want to hear, but houses are selling for approximately what they would have sold for 2 years ago, and the smart buyer knows it is time to buy before things return to normal. So, if you are a buyer, know this. This is the market to take advantage of the current situation in home sales to acquire properties for minimum cash at bargain prices while taking minimum risk.
Whether you are investing in vacant land, commercial property, a car wash, and even a motel, single-family houses are the smartest purchases for either personal occupancy or as long-term investments. This is the time to embrace change, because it will never stop. Yet, I must warn you, buy two or three houses a year in these periods, because it's easy to buy houses but it can be difficult to sell them. Still, this is not something to worry about, in a few years the market will return to normal, and you will be on top. Plus, odds are, that you will not only be on top, but you will also be earning thousands in income as a result if done right.
So, what should you be looking for? Well, firstly, you should be watching the market for modest houses needing fix-up but not major capital improvements. Furthermore, you should be making your agent aware of your situation. This might be the time where you ask the question, "What do I need an agent for?" Well, I then would ask you, "do you consider yourself an expert and professional in your field?" Well, this is what an agent is to you, an expert and professional in their field who has the right resources and knows how to find the properties you are looking for in your market. Why? Because this is their job, just like an accountant knows numbers, a realtor knows properties. So, consider a realtor first, and don't waste your time, because it may be limited. Knowing this, back to some basics on the right property to buy.
Remember, it is the land that appreciates, for this reason, I advise against buying luxury homes in down markets. Instead, I suggest working-class houses in good neighborhoods that will grow in value as the land becomes more valuable, because the houses appeal to the majority of prospective tenants and future buyers. This is how you profit from change, buying the right properties at the right time. This might mean buying lower valued houses or even properties on the verge of foreclosure, but in the long run you will see the benefit, if you put in the research and made the right buy. So, don't be depressed with the market, be excited for the opportunities it brings.
For More Information!
Check Out Our Website :
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or just call my cell phone at 440.336.0612
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-18-08
Whether you want to buy a house for personal use or as an investment, the first step is knowing how to cope with today's market. So, what are we dealing with in today's market?
Currently, we are facing what I like to call slump in the housing market. Sellers are in disbelief as to what their home is currently valued at, and buyers are taking full advantage of the excess supply and offering low to dismal bids in order to find the seller who is willing to jump. Which is reality, I am sure it is not what most people want to hear, but houses are selling for approximately what they would have sold for 2 years ago, and the smart buyer knows it is time to buy before things return to normal. So, if you are a buyer, know this. This is the market to take advantage of the current situation in home sales to acquire properties for minimum cash at bargain prices while taking minimum risk.
Whether you are investing in vacant land, commercial property, a car wash, and even a motel, single-family houses are the smartest purchases for either personal occupancy or as long-term investments. This is the time to embrace change, because it will never stop. Yet, I must warn you, buy two or three houses a year in these periods, because it's easy to buy houses but it can be difficult to sell them. Still, this is not something to worry about, in a few years the market will return to normal, and you will be on top. Plus, odds are, that you will not only be on top, but you will also be earning thousands in income as a result if done right.
So, what should you be looking for? Well, firstly, you should be watching the market for modest houses needing fix-up but not major capital improvements. Furthermore, you should be making your agent aware of your situation. This might be the time where you ask the question, "What do I need an agent for?" Well, I then would ask you, "do you consider yourself an expert and professional in your field?" Well, this is what an agent is to you, an expert and professional in their field who has the right resources and knows how to find the properties you are looking for in your market. Why? Because this is their job, just like an accountant knows numbers, a realtor knows properties. So, consider a realtor first, and don't waste your time, because it may be limited. Knowing this, back to some basics on the right property to buy.
Remember, it is the land that appreciates, for this reason, I advise against buying luxury homes in down markets. Instead, I suggest working-class houses in good neighborhoods that will grow in value as the land becomes more valuable, because the houses appeal to the majority of prospective tenants and future buyers. This is how you profit from change, buying the right properties at the right time. This might mean buying lower valued houses or even properties on the verge of foreclosure, but in the long run you will see the benefit, if you put in the research and made the right buy. So, don't be depressed with the market, be excited for the opportunities it brings.
For More Information!
Check Out Our Website :
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or just call my cell phone at 440.336.0612
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