Thinking of buying a home review the check list:

Wow! Your thinking about buying a home? It's a big step are you ready? What do you do now? Where do I start? Let's get started on the thing you should know.

1. Do you know your credit score?
If you don't have a couple of hundred thousand dollars in the bank. You will need to get a mortgage to buy your home. In this situation you will have to make sure your credit history is as clean as possible. If you need to get a copy of your credit report try http://www.myfico.com/ you will be able to get a report from all three credit bureaus. If there are any errors on your credit report. Start to write your letters to fix any and all problems.

2. How much can you afford?
The rule is that you can buy a home that runs two and one half times your annual salary. That's the rule, but I would advise you to run the numbers. Only you know what your monthly expenses you currently have. There is a mortgage calculator on this site that will better help you to understand what your payment will look like.

3. How much to put down?

I know you have been talking to your friends and family and they have said you need to put down 20%. Let me relieve the stress: There are a variety of public and private lenders who, if you qualify you will be able to put down as little as 3% of the purchase price. There are loans with FHA.

4. What schools are in this district?

No, I don't have kids but should I worry about school districts? Yes, school's will effect you even if you don't have kids. Just remember if you will be selling potential buyers may have children and they maybe looking for a school districts that are top priority. This will help with your property value if you are in a great district.

5. How long can you stay?

Are you looking to remain in one spot for a while? When you are thinking about buying a home remember you will be there for awhile. If you want to move around maybe buying a home is not for you.

6. Help Wanted?

The Internet is a wonderful thing. It has hundred of home listings and you can view them all in the comfort of your home. But, when your a first time home buyer or even an experienced one you maybe better off using a professional real estate agent. Look for an exclusive buyer agent, if possible who will have your interests at heart and can help you with strategies during the bidding process.

7. What's the difference between points and rates?

When picking a mortgage, you usually have the option of paying additional points a portion of the interest that you pay at closing in exchange for a lower interest rate. If you stay in the house for a long time say five to seven years or more. It's usually a better deal to take the points. The lower interest rate will save you more in the long run.

8. Before you go house hunting get your pre-approval

Getting pre-approved will help you when you find your perfect property. It will save you the stress of trying to rush to get approved due to finding your perfect home and thinking someone may steal it away. It will also educate you on how much house you can afford and what your payments will look like. It will also put you in a better position to make a serious offer when your perfect house comes along. A pre-approval is based on the lender running your numbers, your credit history, tax returns and debt.

9. Bidding on a property

If you are placing a bid on a property and are working with a buyers agent. The agent should do there homework before putting in an offer. Your opening bid should be based on the sales of similar homes in the neighborhood. So before you make and offer do your homework on what other homes have sold for in the area.

10.The Inspection

You made the offer it was accepted the next move is to hire a home inspector. We use Jamie Schaefer http://www.jamieschaefer.com/ with House Masters. The lender will require a home appraisal, but that's the banks way to determine if the house is worth the price you are going to pay. You should hire your own home inspector to give you a detail report on what's going on with the home. The inspectors job is to point out potential problems that could require a costly repair bill. Jamie is one of the best inspectors I have come across and he takes pride in helping a homeowner with the largest investment they will ever make.

Secrets that will help you sell your home

The market is very rough and your thinking of selling your home? You only have one chance to make a great first impression. I will give you some tips to maximize your chances to get your home sold. One tip is Staging, Staging, Staging......

As CEO of an Interior Design firm http://www.sacinteriors.com/ that specializes in Home Staging I know the importance of making sure your house is ready to show.

When a potential buyer comes into your home there are a few thing they will get stuck on.
1. Clutter, Clutter and more Clutter.
2. Family photo's everyone has and love there family, but buyers don't want to see your family.
Those are the top two things that people get stuck on now let get down and dirty and talk about it.

I know no one ever told you that getting rid of the family photo's and clearing off counter tops and putting away the kids toys could get you top dollar for your house. When you hear the word staging it's all about showcasing your homes charm. The details of the home. The things that will stay with the house. If you have a wonderful fireplace show it off. If you have beautiful hard wood floors don't cover them up show them off like a great pair of heels.

The goal of staging is to make your home as welcoming as possible so potential buyers can picture themselves living there.. Even if you lived in clutter for years, buyers won't know that once you call S.A.C. Interiors or any other staging company in to help you with the process. Don't forget to check back for more advice on Home Staging.

Oh No Closing Cost!

Take a bite out of closing costs

Hold the fees please. How to save if you're buying a new home or just refinancing. April 22, 2004: 4:30 PM EDT By Sarah Max, CNN/Money senior writer
BEND, Ore. (CNN/Money) - With mortgage rates still as low as they are, financing a house is dirt cheap these days, right?
Not if you pay a fortune in closing costs.
As anyone who has shopped around for a mortgage knows, it's extremely difficult to compare one lender's offering to with that of another lender because the up-front fees vary so much and are not guaranteed. Lenders and their venders can, and sometimes do, add or inflate fees in the eleventh hour of a transaction.
The U.S. Department of Housing and Urban Development (HUD) has been working on regulations that promise to simplify the mortgage process and save consumers as much as $1,000 off a typical mortgage transaction. When such rules will be rolled out, if ever, is still anyone's guess.
With no regulation in sight, borrowers should consider these strategies for keeping their closing costs in check.
Get friendly with your current lender
If you're looking into refinancing, the first call you should make is to your existing lender, who already has critical information about you and your house on file, said Keith Gumbinger, vice president for HSH Associates.
Since you have an existing relationship, a "streamlined" process might be possible. That can save you a lot of extra paperwork and money on everything from application fees to appraisal fees.
Fee-ed Up?Here are just some of the costs of closing on a mortgage.
Fee
Average cost*
Application
$272
Appraisal
$310
Credit report
$28
Document preparation
$206
Processing
$288
Recording
$86
Underwriting
$236
*Based on a $100,000 loan. Not every lender surveyed charges all of these fees.
Source: HSH Associates December 2003 survey of lenders
Although fees for title search and title insurance are not determined by the lender, you may also get a break there. If you recently refinanced or took out a loan, you can save as much as 50 percent on title insurance by asking for a reissue rate, which your lender can request on your behalf.
If you're a homeowner shopping for a new house, you should also try giving your existing lender first dibs on the new business. Assuming you've been a good client and your lender originates the kind of mortgage you're interested in, it's possible to get a better-than-market deal, according to Gumbinger.
Get nitpicky about fees...
There are more than a dozen kinds of fees that could show up on your final closing statement, including credit report fees, appraisal fees, document preparation fees, title fees, recording fees and underwriting fees.
Related articles

•
Big homebuying regrets
•
Are you buying at the top?
•
Why credit matters
All told, fees on a $200,000 mortgage could add up to anywhere from $1,000 to $3,000 – that's not including any "discount" points you pay up front to get the best interest rate. (A "point" is a fee that equals 1 percent of the loan amount.)
Lenders are required to give you a good-faith estimate of your closing costs within three days after you apply for a loan. Some will give you such an estimate even before you apply if you ask for one. Even if it is no guarantee, this written estimate will give you an idea of what kind of fees you can expect to pay, as well as an opportunity to negotiate for a better deal.
"If you're a good credit borrower you can challenge fees if they seem excessive," said Gumbinger, noting that lenders don't control many fees that show up on your statement.
Keep in mind that the good faith estimate doesn't include such out-of-pocket costs as state mortgage taxes, homeowners insurance and property taxes, which you may be expected to pay at the time of closing. In fact, your total tab at closing could be several times more than originally estimated, said Gumbinger.
... but keep the big picture in view
Closing costs are certainly a consideration for both new loans and refinancing. But it's important to not lose sight of what should be your first priority – getting the lowest rate possible.
Indeed, the difference between paying, say, 6 percent and 5.5 percent on a new loan adds up to nearly $23,000 in total interest on a $200,000 30-year loan. If you have to pay a few hundred dollars in closing costs to get that rate, you can rest assured that it is a worthy investment.
It may even be worth it to pay a point or so up front in order to lock in the lowest rates. Let's say that you'll knock your rate down to 5 percent on that $200,000 loan by paying an extra point ($2,000) up front. Considering that you'll cut $62 off your monthly payment and about $22,000 from total interest by going from 6 percent to 5.5 percent, it makes sense as long as you plan to stay in the house long enough to recoup those up front costs.
In fact, if you're short on cash you might even consider rolling the closing costs into your loan, if that is an option. You'll want to consider how much more you'll pay each month as well as in interest over the life of a loan.
If you roll $2,000 in finance costs into a loan with a 5.5 percent rate, for example, you'll pay an extra $11 a month and about $2,000 extra in total interest. In this case you're still better off than if you had not refinanced at all.

August forecloseures hit another high

At S.A.C. Properties we try to bring you information that's important to you. Forclosures hit another high in August. What are the 3 stages of forclosures?

The 3 stages of foreclosures

Many real estate investors dream of swooping in to get a great deal. It's possible, but it helps to know the landscape.
September 13 2006: 1:14 PM EDT
NEW YORK (Money Magazine) -- Regardless of the state of the housing market, Americans will always cling to the foreclosure dream - to buy that dream home for pennies on the dollar.
Some want to flip them right away; some want to play landlord. In both cases, bargains are out there, but it's not easy.
If you decide to look for a foreclosed property, there are several points in the foreclosure process, and after, during which you can make your move.

Stage 1: Default

Your first opportunity comes in the "pre-foreclosure" stage, when owners have already defaulted on their mortgage payments but actual foreclosure hasn't happened yet. To find out about houses in default, visit the local courthouse where defaults are registered. You can then make offers directly to the defaulting homeowner.
However, few pre-foreclosure bargains exist among the most desirable homes. Many of those will sell for near their appraised values.
Properties that sell at a 20 percent to 40 percent discount usually need repair or are in unstable communities.
At this stage you have about 90 days to act after the default notice is posted and another 21 to 25 days after auction sale date is published.


Stage two: Auction


If a property doesn't sell in pre-foreclosure, and the home owner actually defaults on his mortgage, the home goes to public auction. During this stage you can find the best bargains, but it is fraught with difficulties.
Here's some of what you're up against:
Many auctions are canceled at the last moment as the property has been sold or payments reworked.
Court-appointed trustees only accept cash or cashiers' checks.
There's little time to arrange inspections, so bidders may have no clear idea of what they're buying.
Properties are sold "as is," without warranties. Sellers needn't disclose problems. Buyers may find themselves with unexpected -- and expensive -- repairs.
Not all auctions are created equal. If the loan was guaranteed by the U.S. Department of Housing and Urban Development (HUD), then the department takes ownership of the home and either sells it through a real estate agent or auctions it on the Internet.
These properties are not the bargains some potential investors think they are. For one thing, there's a lot of competition.
As for auctions of homes owned by banks or other private lenders, investors should not show up without preparation. All investors should know the state's laws and the particulars of the property they wish to bid on.
They should also be ready to put down a cash deposit of 10 to 20 percent of the sale price on the spot should they win the bidding. The balance will most likely be due in less than 30 days - in many cases in as little as 24 hours.
Financing is not the only obstacle for buyers at a foreclosure auction. The homes may still be occupied by the delinquent owners, and it is up to the high bidder to deal with the messy question of eviction. In some states, the former owners have up to a year after the sale to buy back their home for the amount they owe plus foreclosure costs.
Also, don't expect a clean title search or title insurance to accompany an auctioned property. It is not uncommon for a winning bidder to be unpleasantly surprised by an unpaid $6,000 bill from a roofer or a claim by a third cousin who has an interest in the property.
And while some auctions take place in a house's front yard, allowing you to actually look the place over, just as many are sold online or "on the steps," meaning at the county courthouse. Good luck locating someone with a key to let you in for an inspection beforehand.
Simply put, these auctions are too risky for most buyers. A property could have multiple loans, liens, back taxes, be in need of major repairs. Individuals can look at homes at HUD's Web site and Homesales.gov.
Stage three: REOs


Here's the investor's last chance. If the foreclosure didn't sell at auction, it has nowhere else to go but back to the lender, where it takes on a new name: real estate owned.
Lenders hate REOs. An empty house is a nonperforming asset on their books. The longer a house sits unoccupied, the more its value depreciates. Meanwhile, the lender is spending money for its upkeep -- or not, in which case it faces the possibility of a thorough trashing and an "as is" sale price.
Most large lending institutions won't deal with investors directly, preferring to hand over properties to real estate agents. But smaller banks, eager to save on the commission, may want to talk.
This may be the best chance for "mom and pop" to buy a foreclosure. Experts suggest that when a lender buys a house you want, quickly send an overnight letter to the bank president offering to pay their bid price for the property. The bank may want a quick turnover.
Banks do want to maximize profits, though. So buying from a lender may not result in big savings.
Some of the best foreclosure deals may be had through governmental or quasi-governmental agencies such as Fannie Mae, Freddie Mac, HUD, and the VA. Listings are numerous and available on their Web sites, but the properties they feature are often less upscale. Web auctioneer eBay lists thousands of foreclosed homes, too.
Foreclosures surged in August
More on a Michigan foreclosure auction
This is adapted from Joan Caplin's "Bargains for the Brave" from the May 2004 issue of Money Magazine



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