Friday, January 19, 2007

Tip of the Day:Top Ten Mortgage Banker Tips

The Mortgage Bankers of America list the following as their top ten tips for homebuyers. Thought they were worth repeating here, with my two cents thrown in.
  1. Check your credit report. It really is the most important of all. The credit report will let you know if you will look attractive to lenders. Knowing what they see is to your benefit.

  2. Develop a monthly budget. Know what your monthly expenditures are and determine what is 25% to 28% of your income. It is what lenders are going to be looking at so if you look first you will have some idea of the mortgage payment you can afford.

  3. See a lender first. I would switch this one with the next one and encourage buyers to begin early thinking about and sorting the features they need vs want in a house, then go lender shopping. I encourage buyers to make a list of everything they want in a home and then assign priorities to the items sorting needs from wants. I encourage them to revisit the list as they go through the search for a lender process. It helps separate the first emotional response to home buying.

  4. Needs vs. Wants (see above)

  5. Take time to learn important terms. It is especially necessary for first-time homebuyer to learn the lingo of real estate.

  6. Thoroughly investigate the mechanics of the deal - are there additional costs/fees that you need to consider?

  7. There are various types of mortgage packages. Take your time ask, questions and take the time to understand the package you and your lender put together.

  8. Get pre-qualified. It's fast, it easy, and you do not have to have just one. The reason to get pre-qualified is that it tells you how much money you are likely to have toward your home purchase.

  9. Visit as many homes as possible. The best home for you is out there waiting for you to come along and find it.

  10. Work, interactively with a mortgage lender. For the process to go smoothly the homebuyer must be willing to answer all the questions the lender may ask so being readily available is important.

The homebuying process, with the right team supporting you, will be a pleasant memory and you home a place to enjoy rather than a burden with the correct mortgage package.


Good Luck and Happy Hunting!


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Thursday, January 18, 2007

Tip of the Day: How Much Housing Can You Afford?

There are so many different kinds of mortgages available now that people with special requirements can probably find something that suits them perfectly. But becuase of the great variety, there is no simple, accurate formula that can tell you how big a house payment lenders will qualify you for.
Still, the Mortgage Bankers Association of America does have a way for you to make a rough estimate of how much you can afford if you are choosing a 30-year fixed rate loan -- the most popular mortgage now.
The MBAA says that, in general, you monthly housing costs (including mortgage payment, taxes, insurance and other fixed expenses) should be between 25% and 28% of your local monthly income. Those monthly housing costs plus other long-term debts (expenses extending more than 10 months into the future, such as car payments or other installment loans), should not exceent 36% of your before-tax monthly income.
But be aware that there may be exceptions to the above guidelines. And you might be able to qualify for a larger mortgage using a different kind of loan


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Wednesday, January 17, 2007

Apple iphone – Just Another All-in-One?

Took a look at the new Apple iphone online. The convenience of having all the tools of the trade available in one handheld item is tempting. The sleek design is worth the price if - and this is an important point - if you are among those who never misplace anything and who's kids don't touch your stuff. If you have never left your phone at home and had to return for it or left your camera at work, while you went to view a potential listing or found your four year old had climb your five drawer chest of drawers to play with your PDA/camera then an iphone is worth a look. Even if you have not plans of purchasing the thing it is worth a look. I admit it is inconvenient to not have the camera with you on a listing appointment but if your leave this camera somewhere you might well miss a lead's call. Another consideration, is that if the phone has to go to the shop, so does the camera, the address database - you get the idea. I may grumble about keeping track of my PDA, camera, and cell phone but the truth is keeping the items separate according to their duties works for me, for now.
It is supposed to be available through Cingular for a year before it becomes available through other services and go for about $500.
Check out the iphone


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Tuesday, January 16, 2007

Affordable Housing Bill Battle Ahead

Well, the sides are being chosen and the rhetoric has begun in the fight to end Regional Contribution Agreements (RCA) here in New Jersey. Though the Supreme Court said that all New Jersey town must ensure that low and moderate income residents have affordable housing, the more affluent suburban towns have used RCA’s to shift their responsibility to others -- mainly cities.
Now on the one side you have the cities that have been benefiting from the practice and who want the funds to keep coming. On the other side you have the suburbs that fear an influx of low to moderate income residents would tax their services and encourage sprawl. There is some validity to the sprawl claim but New Jersey is one of the most densely populated states in the nation, a certain amount of sprawl goes with the territory. It seems a bit unfair that low to moderate income residents are forced to live in cities because suburban towns have dumped off their responsibility to provide affordable housing. It will be interesting to watch how this plays out.

The bill, A3857 is here for review.
Read the article here


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Monday, January 15, 2007

Do We Need Another Martin?

Dr. Martin L. King Jr. died in 1968 and since his death the work of creating a colorblind America continues. Dr. King said he worked to ensure his children and grandchildren would be judged by their character rather than their skin color. Equal civil rights, though already the law of the land still has a ways to go before it can be said to be the practice on our country. In Alabama, efforts to remove racist language from their state Constitution as recently as 2002, failed. Justice is still peeking around her blindfold, in that a disproportionate number of blacks receive more severe sentencing and racial profiling continues. The economic difference between the rich and the poor continues to widen. So what will it take? Perhaps a societal change is needed. Not a mere enlightening of the society, but a change that affects the spirit. Is it only in tragedy that “We the People” takes on its truest meaning? Can we not find that spirit and bring it to the front without misfortune? Do we need another Martin L King Jr., or can his dream find a home in all of us?



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