Total Mortgage Services, a national mortgage lender, is offering rural home buyers 100 percent financing or closing cost assistance.
Through its new Guaranteed Rural Housing Loan Program, insured by the U.S. Department of Agriculture, the lender will offer low- and moderate-income residents living in rural areas (usually defined by a population of 10,000 or less or, in some cases, 20,000 or less) several affordable housing finance options:
•No down payment required.
•Closing costs can come from any source, including gifts.
•Competitive 30-year fixed rates.
•No monthly mortgage insurance premiums.
Borrowers can obtain a loan to purchase a new or existing home that is located in a designated rural area.
“The USDA home loan program is one of the most compelling mortgage products in today’s challenging mortgage marketplace and offers real solutions for rural borrowers, especially those in need of 100 percent financing or with lower credit scores," John Walsh, president of Total Mortgage, said in a statement.
To read more about eligibility requirements, visit the U.S. Department of Agriculture Rural Development Web site.
By REALTOR® Magazine Online - Retrieved on Aug 3, 2011
Wednesday, August 3, 2011
Tuesday, July 5, 2011
Sellers Sweeten the deal to attract Buyers
Need to give buyers some extra incentive to choose your listing over the large inventories of others? Sure, price will get their attention, but some incentives may be the extra motivation needed to get the deal to the closing table.
Here are a few common extras that are growing in real estate transactions.
Home Warranties
Home warranties, which can cover the repair or replacement of many home system appliances and components (such as air conditioner, water heaters, and more), can provide buyers with some extra confidence when purchasing a home. “Home warranties are appealing to buyers because they cover appliances and system components that a new home owner has no familiarity with,” says Lelia Chapman, vice president of field sales for American Home Shield. “Sellers benefit from offering a home warranty because it sets the home apart from the rest of the competition in today’s saturated market, often leading to faster sales at better prices.”
Seller financing
With tight credit nowadays making it difficult for some to get a loan, some sellers may even offer financing to get a deal closed. Seller financing, in which the seller is willing to hold the loan, has become more common. Seller-financing is generally offered at a higher rate that is capped at a few years and then requires the buyer to pay off the loan or find new financing. (Read more.)
Furniture
Furniture can be costly to move anyway so more sellers are offering some of their furnishings to sweeten home deals too. For example, if sellers are moving to a condo, in which lawn care is no longer their responsibility, throwing in that riding lawn mower may just be the extra incentive a buyer needs. Some home sellers also may even offer to sell some of the furniture to the buyer at a discounted price to earn a few extra bucks.
Creative offers
Some home sellers are getting more extravagant and creative with the incentives they are offering to buyers. Some have even offered a week’s vacation in Hawaii or thrown in a time-share ownership, which they wanted to unload anyway.
Source: “5 Ways to Sweeten a Home Sale,” AOL Real Estate News (June 29, 2011)
Here are a few common extras that are growing in real estate transactions.
Home Warranties
Home warranties, which can cover the repair or replacement of many home system appliances and components (such as air conditioner, water heaters, and more), can provide buyers with some extra confidence when purchasing a home. “Home warranties are appealing to buyers because they cover appliances and system components that a new home owner has no familiarity with,” says Lelia Chapman, vice president of field sales for American Home Shield. “Sellers benefit from offering a home warranty because it sets the home apart from the rest of the competition in today’s saturated market, often leading to faster sales at better prices.”
Seller financing
With tight credit nowadays making it difficult for some to get a loan, some sellers may even offer financing to get a deal closed. Seller financing, in which the seller is willing to hold the loan, has become more common. Seller-financing is generally offered at a higher rate that is capped at a few years and then requires the buyer to pay off the loan or find new financing. (Read more.)
Furniture
Furniture can be costly to move anyway so more sellers are offering some of their furnishings to sweeten home deals too. For example, if sellers are moving to a condo, in which lawn care is no longer their responsibility, throwing in that riding lawn mower may just be the extra incentive a buyer needs. Some home sellers also may even offer to sell some of the furniture to the buyer at a discounted price to earn a few extra bucks.
Creative offers
Some home sellers are getting more extravagant and creative with the incentives they are offering to buyers. Some have even offered a week’s vacation in Hawaii or thrown in a time-share ownership, which they wanted to unload anyway.
Source: “5 Ways to Sweeten a Home Sale,” AOL Real Estate News (June 29, 2011)
Friday, July 1, 2011
5 Questions to Ask When Evaluating Short Sales
“Mortgage lenders across America are eager to avoid foreclosures, and short sales can be an attractive option for clients and real estate professionals alike,” writes Bill Ervin, the national sales director of real estate relationships for CitiMortgage Inc., in an article at RISMedia. “Ask the right questions and you’ll be well on your way to a successful short sale.”
Here are some questions Ervin points out are important for real estate professionals to consider when evaluating a potential short sale for a client.
1. Who owns the lien according to the servicer?
2. What documents are required? For example, the transaction always requires a Letter of Authorization (which is from the client authorizing the real estate professional to speak on their account); listing agreement; purchase contract; estimated/final HUD Settlement Statement; and 2nd Lien Approval Letter.
3. Do all of the parties agree on the property’s value?
4. Has the seller signed a short sale agreement?
5. What are the major challenges the client may face in this transaction? (For example, are there subordinate lien holders or will the client be able to secure financing in time?)
Read more of Ervin’s tips for successful short sale transactions at RISMedia.
Source: “Don’t Fall Short: Follow This Path to Successful Short Sales,” RISMedia (June 29, 2011)
Here are some questions Ervin points out are important for real estate professionals to consider when evaluating a potential short sale for a client.
1. Who owns the lien according to the servicer?
2. What documents are required? For example, the transaction always requires a Letter of Authorization (which is from the client authorizing the real estate professional to speak on their account); listing agreement; purchase contract; estimated/final HUD Settlement Statement; and 2nd Lien Approval Letter.
3. Do all of the parties agree on the property’s value?
4. Has the seller signed a short sale agreement?
5. What are the major challenges the client may face in this transaction? (For example, are there subordinate lien holders or will the client be able to secure financing in time?)
Read more of Ervin’s tips for successful short sale transactions at RISMedia.
Source: “Don’t Fall Short: Follow This Path to Successful Short Sales,” RISMedia (June 29, 2011)
Wednesday, January 21, 2009
Bloomington Indiana Real Estate
Home buying advantages in the "slow" season
Winter is often considered a slower season for real estate. The demands of the holidays and less-than-perfect weather conditions typically lead to fewer listings and fewer buyers searching the market. The relatively quiet winter real estate market can actually be a great opportunity for motivated buyers for 3 main reasons:
Sellers who list their homes during this period are usually highly motivated. They may be relocating for work or may be in the process of purchasing a new home themselves. Whatever the reason, it’s likely that they are looking to sell the home more quickly than the average seller. This means they are more prone to accept lower offers or conditions more favorable to the buyer.
Fewer buyers means less competition. Though there may be a lower number of homes on the market, there are also fewer buyers fighting you for those listings. A slower marketplace keeps houses on the market longer and allows you to discover great properties.
Mortgage interest rates tend to be a little lower during the winter.
January is a great time to buy a home, but don’t forget that preparation is the key. There are still important steps to take prior to looking for a home. Research your credit history as soon as possible; this way you can clear up any discrepancies that could prevent you from getting a good loan. Once you feel your credit record is in order, contact a lender to secure pre-approval for a mortgage. Having pre-approval will let you shop this great market with confidence, and will mark you as an informed homebuyer. Remember that all sellers are looking for serious buyers, even if buyers are in short supply.
A professional buyer’s agent can help you begin your buying plan, guide you through the pre-approval process, and act as a skilled negotiator once you find the home you’re looking for. The New Year is an ideal time to purchase a new home. This may be the right opportunity for you!
Winter is often considered a slower season for real estate. The demands of the holidays and less-than-perfect weather conditions typically lead to fewer listings and fewer buyers searching the market. The relatively quiet winter real estate market can actually be a great opportunity for motivated buyers for 3 main reasons:
Sellers who list their homes during this period are usually highly motivated. They may be relocating for work or may be in the process of purchasing a new home themselves. Whatever the reason, it’s likely that they are looking to sell the home more quickly than the average seller. This means they are more prone to accept lower offers or conditions more favorable to the buyer.
Fewer buyers means less competition. Though there may be a lower number of homes on the market, there are also fewer buyers fighting you for those listings. A slower marketplace keeps houses on the market longer and allows you to discover great properties.
Mortgage interest rates tend to be a little lower during the winter.
January is a great time to buy a home, but don’t forget that preparation is the key. There are still important steps to take prior to looking for a home. Research your credit history as soon as possible; this way you can clear up any discrepancies that could prevent you from getting a good loan. Once you feel your credit record is in order, contact a lender to secure pre-approval for a mortgage. Having pre-approval will let you shop this great market with confidence, and will mark you as an informed homebuyer. Remember that all sellers are looking for serious buyers, even if buyers are in short supply.
A professional buyer’s agent can help you begin your buying plan, guide you through the pre-approval process, and act as a skilled negotiator once you find the home you’re looking for. The New Year is an ideal time to purchase a new home. This may be the right opportunity for you!
Information Courtesy of RE/MAX of Indiana - Monthly newsletters.
Wednesday, October 15, 2008
RE/MAX Realty Professionals
Join the Best in Real Estate
Since being founded in 1987, RE/MAX Realty Professionals has been helping enterprising real estate professionals reach their highest career goals. We provide our agents with unsurpassed training and support, exemplified by our visionary agent mentoring program. Check out this website for more details on a career in Real Estate with RE/MAX Realty Professionals: Join RE/MAX Realty Professionals
Whether you are an experienced real estate professional who wants to work with the best in the industry or a motivated entrepreneur who desires a rewarding career path, joining RE/MAX Realty Professionals is a great choice for your future. To learn more about how RE/MAX Realty Professionals can help you achieve success, contact us today!
Since being founded in 1987, RE/MAX Realty Professionals has been helping enterprising real estate professionals reach their highest career goals. We provide our agents with unsurpassed training and support, exemplified by our visionary agent mentoring program. Check out this website for more details on a career in Real Estate with RE/MAX Realty Professionals: Join RE/MAX Realty Professionals
Whether you are an experienced real estate professional who wants to work with the best in the industry or a motivated entrepreneur who desires a rewarding career path, joining RE/MAX Realty Professionals is a great choice for your future. To learn more about how RE/MAX Realty Professionals can help you achieve success, contact us today!
Tuesday, September 30, 2008
Bloomington Real Estate
For the most current up to date listings for Monroe County - Bloomington, Indiana check out www.realty-professionals.com There you will find photos, details and extensive information for all the properties currently available in the area.
Your guide as well to Bloomington Real Estate Agents and Commercial Properties as well as Indiana University properties. Anything you need to know regarding real estate for Bloomington and surrounding areas.
Your guide as well to Bloomington Real Estate Agents and Commercial Properties as well as Indiana University properties. Anything you need to know regarding real estate for Bloomington and surrounding areas.
Tuesday, September 16, 2008
Real Estate Advisor
What To Do When facing an ARM Reset
The ARM's Race of 2008
This August, some homeowners will be feeling a little more than the usual heat. By the end of this summer, over 300,000 subprime adjustable rate mortgages will "reset" from lower introductory rates to current market rates. The change in rate can equate to a tough-to-stomach bump in monthly payments, especially for loans that feature extra-low "teaser" rates.
The Refinancing Option
Choosing to refinance has two main benefits :
Lock into a Fixed Rate – Why worry about periodic rate resets and rising mortgage rates if you don't have to? Refinancing gives owners the chance to lock into a fixed rate for the long term.
Lower Rates – While current rates are higher than they were a few years ago, from a historical perspective they are still considered low. Most economists believe that national averages of long-term rates will hover within a point or two of 6 percent through the end of the year.
Who Qualifies for Refinancing
Tightening requirements for new home loans have to some degree extended to refinancing as well. The best candidates for refinancing are owners with good credit, income documentation and solid equity in their homes. Refinancing is typically a better option for owners who plan to stay in the home for at least several more years.
Who Doesn't
Owners With Low Credit Scores – In recent years some buyers were able to obtain subprime loans with credit scores in the mid 500's. Owners who haven't raised their credit scores into at least the mid to high 600 range will find it hard to obtain refinancing. Even scores in the high 600's, which in the near past had been considered fairly good, are no guarantee of smooth sailing (Fannie Mae and Freddie Mac announced in the spring that borrowers with rates below 680 will need to pay a surcharge on top of the price of the loan).
Owners With Little Equity – To protect their investments, many lenders have been increasing the amount of equity an owner must have in their home. Many buyers may have purchased their homes with little or no money down, or perhaps opted for an interest only loan. In either case the amount of equity in the home may be below lender's acceptable levels. Homes that have either not appreciated or that have lost some value will be even harder to refinance.
How to Survive the Reset
Consolidate other debt – Consider seeing a credit counselor if you have multiple sources of high-interest debt in addition to your home loan. You may be able to re-structure these into one lower-interest loan, enabling you to more easily make the higher home-loan payments
Cut expenses – While it may not be in our nature, we can often make do with less. Look first for monthly expenses that qualify as luxuries (cable or satellite TV, high-speed internet, etc.). Cut down on meals away from home and look for other ways to shave unnecessary spending from your budget.
Start an Extra Savings Account – Even if you can afford to make payments after an initial reset, the best way to prepare for potential rate increases in the future or unforeseen circumstances is to start setting aside a little additional money, just in case.
Information courtesy of RE/MAX International August Newsletter
The ARM's Race of 2008
This August, some homeowners will be feeling a little more than the usual heat. By the end of this summer, over 300,000 subprime adjustable rate mortgages will "reset" from lower introductory rates to current market rates. The change in rate can equate to a tough-to-stomach bump in monthly payments, especially for loans that feature extra-low "teaser" rates.
The Refinancing Option
Choosing to refinance has two main benefits :
Lock into a Fixed Rate – Why worry about periodic rate resets and rising mortgage rates if you don't have to? Refinancing gives owners the chance to lock into a fixed rate for the long term.
Lower Rates – While current rates are higher than they were a few years ago, from a historical perspective they are still considered low. Most economists believe that national averages of long-term rates will hover within a point or two of 6 percent through the end of the year.
Who Qualifies for Refinancing
Tightening requirements for new home loans have to some degree extended to refinancing as well. The best candidates for refinancing are owners with good credit, income documentation and solid equity in their homes. Refinancing is typically a better option for owners who plan to stay in the home for at least several more years.
Who Doesn't
Owners With Low Credit Scores – In recent years some buyers were able to obtain subprime loans with credit scores in the mid 500's. Owners who haven't raised their credit scores into at least the mid to high 600 range will find it hard to obtain refinancing. Even scores in the high 600's, which in the near past had been considered fairly good, are no guarantee of smooth sailing (Fannie Mae and Freddie Mac announced in the spring that borrowers with rates below 680 will need to pay a surcharge on top of the price of the loan).
Owners With Little Equity – To protect their investments, many lenders have been increasing the amount of equity an owner must have in their home. Many buyers may have purchased their homes with little or no money down, or perhaps opted for an interest only loan. In either case the amount of equity in the home may be below lender's acceptable levels. Homes that have either not appreciated or that have lost some value will be even harder to refinance.
How to Survive the Reset
Consolidate other debt – Consider seeing a credit counselor if you have multiple sources of high-interest debt in addition to your home loan. You may be able to re-structure these into one lower-interest loan, enabling you to more easily make the higher home-loan payments
Cut expenses – While it may not be in our nature, we can often make do with less. Look first for monthly expenses that qualify as luxuries (cable or satellite TV, high-speed internet, etc.). Cut down on meals away from home and look for other ways to shave unnecessary spending from your budget.
Start an Extra Savings Account – Even if you can afford to make payments after an initial reset, the best way to prepare for potential rate increases in the future or unforeseen circumstances is to start setting aside a little additional money, just in case.
Information courtesy of RE/MAX International August Newsletter
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