Proper planning for a home purchase


Proper Planning for a Home Purchase Can Eliminate ALL of the Stress
By: Jonathan Hansen

Planning everything properly before striking the final deal on your new home purchase can make the transaction virtually stress free!

There is nothing more stressful than buying a new home. So, whenever you are determined to buy a new home, you need to plan properly. Evaluate various factors such as your financial status, size of the mortgage, the interest rate, community, and other important issues. You can simplify the complex steps of buying a new house by breaking the process into various steps.

Your budget is the most important thing that you will need to consider in buying a new home. As the price of the home is very expensive these days, you may need to research your finances very carefully before taking a mortgage. If your financial status is sound, then making that initial down payment shouldn't be difficult.

Once you decide to buy a new home, you will need to begin the search. It is always advisable to get pre-approved for a mortgage. Searching for the right home can also be very complicated without the help of a real estate agent who possesses good knowledge of your chosen community. They can determine the type of house you may like, educate you about the community, and other important aspects of home buying. Don't stop hunting for your new house soon after talking with just one agent. It is recommended that you contact several agents that may help you find your dream home.

When you've found that dream home after a long hunt, it's time to find a loan so that you may finalize the deal. The size of your mortgage will depend upon the cost price of your home and your current financial status. Please check out and compare the policies, rules and interest rates of various lenders before you sign and find a loan that best suits your income and financial needs.

Don't stop negotiating the price of the home. The more you can negotiate, the better, creating a lesser burden for you in future. Before making the final deal, carefully evaluate the new home, insuring that it contains all you want in your dream home.

When things strike the right note, it's time for you to make a final deal. Your long stressful hunting is over now. The time has come for relaxation and the start of a new life in your dream home.

Author Resource:-> Jonathan Hansen is an expert in the field personal finance, mortgage, refinance, and debt consolidation. You can call 1-800-772-7027 for a rate quote or visit his company site to learn more about obtaining a Home Mortgage online.

Article From US Real Estate Articles

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3,300sqft Log Home in Cottonwood, CA $399,999

Here’s a link to our newest listing, a 3300 square foot home on 10 acres in West Cottonwood between Redding and Red Bluff, California. This log home has a great in-law setup as well as an additional recreation room plus 3 other bedrooms and an office! Plenty of room for everyone! Call us at 530.227.0345 for more information on this home or to schedule a private viewing.

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Fannie Mae and Freddie Mac Rescued

Fannie Mae & Freddie Mac RescuedOn Sunday, Federal officials unveiled the elaborate plans to takeover Fannie Mae and Freddie Mac, the two giants in mortgage lending backers in the United States.  Fannie Mae and Freddie Mac currently back over $5 trillion in home loans, not directly lending the money but backing the money that is lent by mortgage lenders. 

The Federal Housing Finance Agency is planning on taking the 2 companies under a federal goverment conservatorship and overseeing their actions until the companies and our national housing market are back on solid ground. 

Fannie Mae and Freddie Mac, which are both Fortune 500 companies were originally created by the federal government to back the loans of traditional lenders.  Over the last year the two companies have lost nearly $12 billion due to the decline in home prices coupled with the high increase in foreclosures and the inability of buyers to pay their monthly home mortgages.

Federals announced that both companies would be open Monday morning as usual but will have undergone a complete structural facelift over the weekend. 

So what about the stock and ownership of the companies?  Both the treasury and the FHFA will be purchasing large quantities of preferred stock in the companies to bolster support of the current shareholders and prevent them from mass-selling their stocks. 

Stay tuned for more posts on how this will affect current homeowners and potential home buyers as well as what the long-term effects will be with the US government.

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Redding Real Estate Market Update 9/3/08

Image of houseResidential Listings:  There are currently 1877 active listings and another 368 listings that are pending (in escrow).  Last week there were 1893 active listings with another 376 in escrow which was up from 1,702 active listings 3 months ago! 

     Historical Data for Closed (Sold) MLS Listings in Shasta County

  • 163 closed escrows in April 2008
  • 182 closed escrows in May 2008
  • 151 closed escrows in June 2008
  • 169 closed escrows in July 2008
  • 186 closed escrows in August 2008
  • So far in September 2008 there have been 2 closed escrows. 

Overall statistic for the year 2007: there were 2,140 listings that sold (closed escrow) and were recorded in the MLS database.  So far in 2008 we have had 1250 listings that have closed escrow. 

Click Here to search the entire Shasta MLS!

Are you thinking of selling your home?  Before selecting your agent make sure that they know where the market is going, where it has been and how they can help you to SELL your home, not just LIST it!  Contact Clint and Mindy Cronic at Real Estate Professionals, GMAC today at 530.227.0345 for more information on how our agressive marketing strategy can SELL your home!

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Goodbye Nehemiah…hello weekend!

This last week in real estate has been a lot of hard work!  With one of the most popular additions to FHA (the Nehemiah) going away and this really being the last opportunity to get clients into escrow under the program, we had much to do in a short amount of time.  Nothing like being the buyers (or agent) when you know you HAVE to put an offer in that week or you won’t be able to have a down payment to buy your first home.  For those that don’t know, the program basically allows a seller to do a 3% credit back to the buyer for closing costs and also “grant” another 3% to the Nehemiah Foundation who directly “grants” the money back to the buyer for their down payment.  Great way to “work the system” legally and give 6% to buyer for FHA loans.  There are similar programs out there now but those that were already planning and pre-qualified under this program want to use it and there is plenty of inventory out there at good prices…oh yes, interest rates are still comparatively low!

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Home Loans for Redding, CA

Sommer Mouser, Bank of America Mortgage in Redding, CA

 

My name is Sommer Mouser with Bank of America Mortgage in Redding. I’ll be sharing information on the most current mortgage trends- what products are currently working well, what new ones come along, where rates are, ideas to save you money now and in the long run. 

 

 

 

 

Here’s my contact information:
Sommer Mouser, Bank of America Mortgage
1661 East Street
Redding, Ca 96001
530-305-4241

To prequalify for a loan or learn more about buying a home visit my website

 

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Redding Real Estate Market Statistics

Residential Listings:  There are currently 1893 active listings and another 376 listings that are pending (in escrow).  Last week there were 1886 active listings with another 393 in escrow which was up from 1,702 active listings 3 months ago! 

Historical Data for Closed (Sold) MLS Listings in Shasta County

  • 163 closed escrows in April 2008
  • 182 closed escrows in May 2008
  • 151 closed escrows in June 2008
  • 169 closed escrows in July 2008
  • So far in August 2008 there have been 150 closed escrows. 

Overall statistic for the year 2007: there were 2,140 listings that sold (closed escrow) and were recorded in the MLS database.  So far in 2008 we have had 1212 listings that have closed escrow. 

Click Here to search the entire Shasta MLS!

Are you thinking of selling your home?  Before selecting your agent make sure that they know where the market is going, where it has been and how they can help you to SELL your home, not just LIST it!  Contact Clint and Mindy Cronic at Real Estate Professionals, GMAC today at 530.227.0345 for more information on how our agressive marketing strategy can SELL your home!

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Redding Home Values Stronger Than National Average!

According to the latest Zillow Real Estate Market Report, although home price averages dropped 6.5% in Redding in the second quarter of 2008 compared to the second quarter of 2007, this was a much lower drop than the national average of 9.9% during the same period.  What this shows is that although home prices dropped, they dropped more throughout the nation than Redding which helps to show that even though we are around the corner from Stockton, the nations #1 city for foreclosures, that we still have managed to beat the national average.

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Search all Redding Repo/REO Listings!

We’ve created a page on the blog that allows you to search all of the Redding and Shasta County bank-owned (REO) properties and reposessions (REPO’s).  These properties have all already gone back to the banks at the courthouse steps and have actually been listed in the Shasta MLS with a brokerage. 

Click here to search all REPO’s in the Shasta MLS!

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Redding Real Estate

Real estate in Redding has picked up over the last week, according to our perception.  The number of houses on the market has decreased slightly as we expect it to continue to do as fall draws nearer which always happen as the winter holidays encourage sellers to take homes off the market while they entertain house guests.  We’ve just posted today’s latest Real Estate statistics as you’ll see below:

Residential Listings:  There are currently 1886 active listings and another 393 listings that are pending (in escrow).  Last week there were 1915 active listings with another 402 in escrow which was up from 1,702 active listings 2.5 months ago! 

Historical Data for Closed (Sold) MLS Listings in Shasta County

  • 163 closed escrows in April 2008
  • 182 closed escrows in May 2008
  • 151 closed escrows in June 2008
  • 169 closed escrows in July 2008
  • So far in August 2008 there have been 47 closed escrows. 

Overall statistic for the year 2007: there were 2,140 listings that sold (closed escrow) and were recorded in the MLS database.  So far in 2008 we have had 1108 listings that have closed escrow. 

Click Here to search the entire Shasta MLS!

Are you thinking of selling your home?  Before selecting your agent make sure that they know where the market is going, where it has been and how they can help you to SELL your home, not just LIST it!  Contact us today at 530.227.0345 for more information on how our agressive marketing strategy can SELL your home!

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Short Sale Versus REO? What does it all mean?

Well we have been working with many clients lately that have been interested in Short Sales or REO’s.  I’d like to explain the difference as most people coming to us don’t really understand exactly what each is.

A short sale is a property that is being sold “SHORT” of the amount owed on it.  This means that if you submit an offer on a home that is a short sale the seller (owner) would approve the offer and then send it to the bank that they have their loan through for final approval.  The bank has the ultimate authority for approval and if they don’t approve the offer amount and counter offers are not successful then if no other offers are successful the home would be sold back to the bank after the Notice of Default for non-payment is made and a sale date is created at the courthouse steps.  Remember, if you are writing an offer on a short sale the approval time can be VERY lengthy.  By this I mean that we have had some short sales that were not approved for 4 months.  What we generally would do is submit the offer and continue to look at all new listings that come onto the market in case something better comes along for our clients. 

An REO (bank owned, foreclosure) is “Real estate owned” by the bank.  This means a notice of default was filed when the owner stopped making payments.  After a specified time a sale date was created and the home was sold back to the bank at the courthouse steps.  The bank then has complete possession of the property and vacates the previous owner (if needed) and turns the listing over to a real estate agent to list.  Banks generally have a fairly quick response time (1 day to 8 days usually in our area) and are usually listing their homes near or at fair market value.  We’ve found that new listings aren’t usually too open for negotiation but around the 30 day mark the banks usually negotiate more (but there are ALWAYS exceptions to this). 

So, if you are thinking of purchasing a short sale or REO home we’d love the opportunity to assist you!  Just call us at 530.227.0345 or visit our website at www.sellingredding.com

You can always search the entire MLS at www.sellingredding.com/selectmlstosearch.htm

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Housing Rescue Bill To Help Homeowners!

redding foreclosure, repo, short sale sign

Redding homeowners, help is on the way!  Saturday the US Senate passed the Housing Rescue Bill, a bill allowing nearly 400,000 home owners to refinance into affordable, government-backed loans. The bill, strongly supported by the NATIONAL ASSOCIATION OF REALTORS®, passed by a margin of 72-13. The House of Representatives approved the bill on Wednesday in a 272-15 vote.

According to to the National Association of Realtors (NAR), the bill will help bring stability to the housing market and put a dent in the rising rate of foreclosures.
 
The program will be run by the Federal Housing Administration, and will insure up to $300 billion in refinanced 30-year, fixed-rate loans. The mortgages can’t be for more than 90 percent of a home’s newly appraised value.For mortgages that exceed the value of the home, the lender would have to voluntarily write down the principal to the qualifying level. If the home goes up in value, the borrower must share newly created equity with the FHA.  Experts say the success of the program depends on how receptive banks are to writing down a portion of the loan.
Some other information on the bill: If passed into law, the program will begin Oct. 1 and end Sept. 30, 2011. Also, borrowers won’t be able to qualify if they have intentionally defaulted on their loans or if they had a debt-to-income ratio of less than 31 percent as of March 1, 2008. 

So what’s left to turn the bill into a law??? The President has to sign off on the bill and then it will be enacted into law effective October 1, 2008.  So, if you are a homeowner that fears losing your home to foreclosure, there may be relief for you without having to do a short sale or be foreclosed upon! 

What do YOU think about the housing bill? Do you think the government should be helping homeowners or do you feel as if the government should stay out and let the banks foreclose on these properties?

 

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Bottom-line Home Sellers

Over the last few weeks it has become apparent that many of the sellers out there have reached their bottom line at which they can/will sell their home for. We’ve written more offers lately with the response from the seller nearer to full price only because they can’t (or won’t) go any lower. What this means is that these sellers are willing to wait out the foreclosure/REO/short sale market until better selling conditions exist for them if they don’t have to sell. If you want one of these homes you may pay a higher price, that is just the bottom line.

What does this mean to buyers? If you are looking at one of these homes (where sellers don’t have to sell) you may have to either up your price to get the home of your dreams or hold out yourself and hope market conditions continue to decline and that particular seller eventually changes their mind and decides to sell. Remember buyers, not everyone with their home listed on the market “HAS” to sell. If you are trying to get a deal (and there are plenty out there in the Redding area right now) you may want to keep shopping through the inventory until you find a seller that will accept your offer. After talking with some of our sellers that don’t have to sell, their response is that they will just “wait out” the foreclosure and REO market. Since they don’t need to sell, if the right buyer comes along then negotiations will happen but someone has to want their home not just “steal” it as some sellers are saying.

This doesn’t mean, however, that all homeowners are inflexible. Many out there are ready to make a deal but you have to write an offer to get it reviewed. Don’t be afraid to make an offer if you are interested and be sure to negotiate as high as you can go initially if there are multiple offers on the home so you don’t miss out on the opportunity if you really want the home.

If you are buying now be prepared to make a few offers on different homes (if you aren’t looking for your “dream home” but would rather find a good investment), be pre-approved with a lender so when you do see a new home come onto the market you are ready to purchase and work closely with your agent to ensure they are out there looking for you as well.

If you need assistance please call us at 530.227.0345 or visit the real estate portion of the blog to search the entire MLS. Remember, we’d be happy to assist you with any of your real estate needs, just let us know! Clint & Mindy Cronic, Real Estate Professionals GMAC

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Turtle Bay Museum “Birds In Flight”

Well yesterday while waiting for some clients to finish an appointment, I took their kids and mine to Turtle Bay Museum to see the Birds In Flight and Butterfly exhibits. I hadn’t been there yet this year but it is so relaxing and fun for everyone, regardless of age! The birds will land on you as you’ll see in the photos and the butterfly exhibit is so peaceful you could just sit on the bench and watch them flutter around you all day and be happy! p.s. we have a family membership…less than $100 for the year and you can have unlimited access to the park and even bring guests for free…now that is a great deal!

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Redding Real Estate Market Statistics 7/21/08

Residential Listings:  There are currently 1921 (up from 1915 last week) active listings and another 399 (down from 402) listings that are pending (in escrow).  Two weeks ago there were 1889 active listings with another 391 in escrow which was up from 1,702 active listings 3 months ago!  During April 2008 we had 163 escrows closed, in May we had 182 closed escrows, in June we had  151 closed escrows and so far in July there have been 76 closed escrows.  Overall statistic for the year 2007: there were 2,140 listings that sold (closed escrow) and were recorded in the MLS database while so far in 2008 we have had 965 listings that have closed escrow. Click Here to search the entire Shasta MLS!

Are you thinking of selling your home?  Before selecting your agent make sure that they know where the market is going, where it has been and how they can help you to SELL your home, not just LIST it!  Contact us today at 530.227.0345 for more information on how our agressive marketing strategy can SELL your home!

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