Many Ways to Finance your New Home: My Community Mortgage

Continuing on the theme of different kinds of financing, I had the opportunity last week to listen to a presentation from my favorite lender who wanted to introduce us to this mortgage program.  It can be a GREAT alternative to FHA for those who qualify.  With the FHA changes and PMI making monthly payments higher, this could be a mortgage to consider.

My Community Mortgage is a Conventional Loan, designed for average income borrowers.  It is restricted to a maximum income of the area median income - in my market that is around $65,000.  The program is better for people who have good credit - high 600's.  Some highlights:

• 3% minimum down payment
• Source of the the down payment and closing costs can be anything - gift, grant, or other assistance program.  (In other words, unlike some other loans, none of the down payment or closing costs needs to be your own seasoned money)
• Owner occupied only 
• 30 year fixed rates
• Must complete a Homebuyer Education class (can be done online)
• Reduced Mortgage Insurance Requirements

If you are considering FHA for your mortgage, talk to your lender about this program.  They should be able to provide you a side by side comparison of the two programs to see what the best fit is for you.

If you want to talk to MY favorite area lender, just contact me!

I found this fact sheet on the Fannie Mae website that you can look at for a guide.

 

House Hunting with Kids

Cutler Real Estate Blog: Tips for House Hunting with Kids: By Hans Brings Buying a house is in equal parts exhilarating and nerve wracking. Unless you have that perfect house just waiting for you, financing ready to go, and no competing offers, your home search can be time consuming and fraught with ups and downs.  Add your kids to the mix and you might feel completely overwhelmed before you even get started.  

I saw this link pop up, and it was a topic that hit home with me.  We recently moved with small children, and many of my friends have had the same experience.  House hunting with kids can be stressful and overwhelming.  Depending on the age of your kids, you have kids who don't understand what the move means, who might be leaving behind an old school, or their neighborhood friends.

You can follow the link above to the original article, but I wanted to share my experience below, with some advice for other families.

When my husband and I were house hunting, we had three children three and under at home.  My three year olds didn't really know what was happening.  They were concerned about people coming into our house for showings, loved houses that we saw that we didn't like, and were concerned about what would happen to their stuff when we moved.  Not fun for any parent.

With older children, I know you would want to include them in the home buying process, but for us, with smaller children, I would recommend leaving them out of it until you find the house you think you want.  In other words, leave them home with a babysitter if you can!

If you can't, and you do find yourself house hunting with kids, here are some tips to make it easier.

• Plan around naps and mealtime - if you can avoid the crankiest time of day, you will have a much more pleasant experience.  If you do have children who still nap and they will sleep in the car, the opposite advice is true.  Let them sleep in the car while you and your spouse take turns going through the house.  
• Bring snacks - Bring the good ones.  In my house, there are many treats that are saved for special occasions.  These are the kind of snacks you want to have in your bag of tricks.  
• Bring entertainment - whether it is books, a portable DVD player, or your IPad, have something for your kids to do in the car.  You may be house hunting in a neighborhood 5 minutes away, but treat it like a long road trip.  
• Plan breaks - if your day includes a lot of showings in one day, plan for breaks to eat, stretch and use the bathroom!  If you are looking in a particular area, let them check out their new park, or a neighborhood playground.  
• Don't get their hopes up - This is a tough one, but when you are dealing with very young children, try to keep your enthusiasm down until you know for sure it is going to be your future home.  You don't want your kids falling in love with something about a house that becomes their one that got away.  
• Give house rules - If you are bringing your kids through a house with you, remind them that it is not your house.  They need to stay off the furniture, keep their hands off of valuables, and don't play with toys if they are there.  Keep an eye on your children (a hand is better) at all times in a house you are seeing.  Even if the house is vacant, you don't know what they might find to get into. 

Buying a home for your family is an exciting but stressful time.  Try to make it fun for your kids, but remember that this time is stressful for them too!

Many Ways to Finance Your new Home - USDA loans

Did you know that the USDA helps people to buy homes in rural areas?  If you are looking for a home in Ohio where the population is less than 10,000, you may be eligible for a USDA loan.  You can check this interactive map to see if a home you are interested in is in a qualifying area.

One of the main differences of this kind of loan versus some more traditional loans is that there is no down payment requirement.  A client of mine is going through USDA and has reported low interest rates as well.  In my immediate market, not every home is going to qualify, but if you are looking for that place in the country, this might be the loan for you.

Here are a few links explaining the requirements for several of the USDA programs.  Be sure to talk to your lender for details.    

http://www.rurdev.usda.gov/HAD-Guaranteed_Housing_Loans.html

http://www.rurdev.usda.gov/oh/grhhousing.htm

http://www.rurdev.usda.gov/HAD-Direct_Housing_Loans.html


Jennifer

Preparing for the Home Inspection

Home Inspections.  They have become an essential part of nearly every real estate transaction.  As a Real Estate professional I can tell you that the buyers I have worked with use this inspection to help with their decision making, and also to plan out repairs they need to do in the future.  

As a seller, you should do everything you can to get your house in tip top shape for the inspection.  Replace dead lightbulbs.  Clear the clutter in areas an inspector needs access to (like attic access points, or in front of your basement walls), make sure it is easy to get to all areas of your home.  

First of all, you shouldn't be home for the inspection.  This is the buyers time to go over every detail with the inspector they have hired.  Take your pets out of the house or crate them.  If you have a dog loose in the house or the backyard, they can prevent the inspector from doing their job, and it puts undue stress on your pets.

Don't try to hide anything.  The inspector will find it!  An inspector will run water in faucets, run the dishwasher, start the stove, start the washer and dryer if they are included with the sale.  Make sure all these areas are clean and free of your stuff - if the washing machine is full, your stuff either gets an extra rinse, or if there is an issue, it gets dumped out so the inspector can look inside.  

Treat this time like a showing.  Clear up the clutter, clean the bathrooms.  Remember, your buyers are excited about this purchase, and anxious to see "their" home again.  You don't want them to be frustrated and disappointed.  

Jennifer

Many of these tips were inspired by this article, Ask the Experts:  What Should Home Sellers Do to Prepare for a Home Inspection. by David R. Leopold.  You can follow the link for the full article.  

  

Many Ways to Finance your New Home - 203K

I took a class last week from a well known real estate instructor in my area, and she talked about how real estate agents need to be aware of the many different ways that a person can get financing for their new home.  I knew there were more than a couple of types of financing available, but I had no idea how many!  The list she gave us had 57 different types of financing!  If you want the whole list, you need to work with me as your Realtor.  Today I want to focus on two different rehab loans, backed by FHA.

203K Loans - There are two kinds of loans that FHA insures that are in the 203K program.  If you have ever found a house that needs a lot of work but is at a great price in a great neighborhood, this could be the loan for you.

A traditional 203K loan is an FHA loan for houses that needs renovations and rehab.  Basically, you can roll the money you need for improvements right into your mortgage.  You hire approved contractors to do the work, and have a finished product you can be proud of.  Some of the approved improvements are on this list from the HUD website.
 

• structural alterations and reconstruction 
•  modernization and improvements to the home's function 
• elimination of health and safety hazards 
• changes that improve appearance and eliminate obsolescence 
• reconditioning or replacing plumbing; 
• installing a well and/or septic system 
• adding or replacing roofing, gutters, and downspouts 
• adding or replacing floors and/or floor treatments 
• major landscape work and site improvements 
• enhancing accessibility for a disabled person 
• making energy conservation improvements

Also available is a 203K Streamlined Loan.  Have you fallen in love with a house that has a kitchen from the 70's or a bright pink bathroom from the 50's?  This might be the loan for you! 

If a 203K loan sounds like something you are interested in, you need to talk to your lender.  The lender must be approved to do 203K loans, and you can start by searching here or by calling around and asking.  

You can find a lot of information on the HUD website and another basic description here.

Don't be afraid of Fixer Uppers!

Jennifer

  

National Realtor Open House Weekend

Next weekend, April 20th and 21st I will be taking part in National Realtor Open House Weekend.  Many properties all over the country will be open on Saturday and Sunday, so make sure to check one out!  Even if you are not actively looking, an open house can be a good way to ask a Realtor a question, check out other houses that are similar to yours before you list it, or just to see a house you have admired.

Come see me!

Saturday, April 20th - 1:00-2:30

3210 Hudson Drive, Cuyahoga Falls, OH 

$134,900 - 3BD, 2 BA

Saturday, April 20th - 3:00-4:30

813 Shannon Avenue, Cuyahoga Falls, OH

$122,500 - 3BD, 2 BA

Sunday, April 21st - 2:00-4:00

829 S. Rockhill Avenue, Alliance, OH

$110,000 - 3 BD, 2BA

Jennifer

Tips for Better Home Showings - Part 2

Last week, I covered 8 tips for home showings.  As I was rereading the article I realized just how many of them were just good tips for cleaning and decorating!  All in all, remember that everytime you have a showing, and you have your house in perfect shape, it will be that much easier for the next showing.

Here are the other tips from the original article, Simple Tips for Better Home Showings from Realtor Magazine .   

1.  Add a pop of color in your living room.  Buy a brightly colored afghan or some throw pillows.  If you are crafty, recover your old ones!  A splash of color will brighten up the room. 

2.  Buy a flowering plant and put it in a window you pass frequently. 

3.  Make a centerpiece for your tables.  Use a simple tablecloth.  Make it seasonal, but keep it simple! 

4.  Set the scene.  They say that buyers like to see vignettes of scenes around the house.  Set the table, put a tray on the bed with a newspaper, set things out like a chess game in progress in the rec room. 

5.  Replace heavy curtains with sheer ones.  Again, the theme here is light! 

6.  Accentuate the fireplace.  Buyers love fireplaces.  Clean them up, put logs in them or flowers. 

7.  Make the bathroom seem luxurious.  Put away your toothbrushes, your personal items and leave fresh towels and fancy guest soap out.  Put away the potty seats. 

8.  Lock up your valuables, jewelry and money.  People snoop, and unfortunately, not all people are good people who come through your home. 

9.  Leave your house for showings.  This may seem obvious, but it has to be said.  Buyers are uncomfortable looking around, going through your closets, and making candid comments about your house if you are there.  Even if you get in the car and park down the street, you are leaving the house.  Just go! 

Having your house on the market can be stressful.  Hopefully, you won't have to have it on the market for long. 

Jennifer

813 Shannon Avenue, Cuyahoga Falls - Open House Sunday!

I took this listing last week of a very nice, clean, all brick cape cod in Cuyahoga Falls.  It has 3 bedrooms with a possible 4th upstairs that could be used for an office, a nursery, or anything else.  The basement is partially finished, the carpet is all new, and it is on a big double lot.  You can read the full description here, or you can come see it Sunday.  I am open 1:00-2:30!   

 

How to Improve your Credit Score

I work with a lot of first time home buyers, and one of the first things that they must do is go to a lender for prequalification for a loan. 

Everyone seems to know that they need to have a steady job, work history, and good credit to get a loan, but a lot of people don't know what their credit score is, or how they got it.  I frequently get questions about how to improve it. 

I have touched on credit before in this post, but I came upon an article recently about how to tweak your score to make it better, and I wanted to pass it on! 

First thing first - pay your bills on time, and borrow sparingly.  This will help you to improve your credit over the long run. 

If time is short, here are a few things you can do to help bump your scores up. 

1.  Check your credit score.  You can request your scores for free once a year, and you are also allowed to request it if you are denied credit.  Make sure all debts reported are yours.  If you happen to be a Junior or a Third, it is very common to see mix ups. 

2.  If there is a mistake, report it.  Supposedly four out of five challenges to a credit report go in favor of the consumer. 

3.  Part of your credit score comes from the amount of debt you carry versus the amount you are allowed on each card.  So, if you have a card with a $10,000 limit and you have a $1000 balance, that is okay.  But if your balance is closer to $9000, that isn't good. 

An obvious solution is to keep your balances down or paid off.  A not so obvious solution is to call your credit card companies and ask for a higher balance.  Poof.  Your ratio changes.  You also want to make sure that your cards are reporting your limit correctly. 

4.  Bills in debt collection are like poison to your ratings.  But, the older the collection, the less it counts and if it goes more than 7 years, those bills drop off your credit.  If you make a payment to that bill, it brings it fresh up to the credit agency. 

5.  If you are divorced, any cards you took out in both of your names are still being counted towards your score, regardless of who is paying.  The same goes for a card you may have been on of your parents as a teenager.  Make sure you are removed from any accounts where the people paying are not being responsible. 

6.  You cannot have a credit history if you do not have credit.  Some people prefer to only use cash, and that is actually a negative to your credit score.  You can have a card that you pay off every month, and that will still help your credit score. 

7.  When you are shopping for a mortgage loan, do it quickly.  Several inquiries together look like you are looking for a loan, multiple hits that are spread out look like you are trying to go on a spending binge. 

You can read the full article here, How to Tweak a Credit Score.   

I hope this helps, and please contact me if I can help you in any way!

Jennifer