Happy Holidays!!

Wishing You All a Very Happy Holiday Season!
Look forward to helping you get in a New Home in the New Year!!

The media is so negative. Can I still get a mortgage?

YES. Now is a great time to buy a new home. Builders are lowering prices and offering incentives. Resales are available and sellers are ready to move. And, yes, the mortgage industry has made some changes and things are looking better and better for home buyers. There are great loan programs out there like FHA and USDA Rural Housing. Would you like more information? Send me an email, lisakuyath@nc.rr.com

Just Joined a New Firm!

It was tie for me to move on and I have just joined RE/MAX Connected Realty and the Beth Hines Team.

Here is some new contact info...


Lisa Kuyath
Realtor
RE/MAX Connected Realty
748 N. Pleasant-Coates Rd.Benson, NC 27504
(919) 815-1356 Cell
(919) 209-9784 Fax
http://www.lisakuyath.com/

I look forward to helping you with your real estate needs!

5 Factors That Decide Your Credit Score

Credit scores range between 200 and 800. Scores above 620 are considered desirable for obtaining a mortgage. These factors will affect your score.

Your payment history. Whether you paid credit card obligations on time.

How much you owe. Owing a great deal of money on numerous accounts can indicate that you are overextended.

The length of your credit history. In general, the longer the better.

How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay promptly.

The types of credit you use. Generally, it’s desirable to have more than one type of credit—installment loans, credit cards, and a mortgage, for example.

For more on evaluating and understanding your credit score, go to http://www.myfico.com/.

6 Creative Ways to Afford a Home

If your income and savings are making homebuying a challenge, consider these options.

1. Investigate local, state, and national downpayment assistance programs. These programs give loans or grants to cover all or part of your required downpayment. National programs include the Nehemiah program (http://www.getdownpayment.com) and the American Dream Downpayment Fund from the U.S. Department of Housing and Urban Development (http://www.hud.gov).

2. Get the seller to provide financing. In some cases, sellers may be willing to finance all or part of the purchase price of the home and let you repay them gradually, just as you do a mortgage.

3. Consider a shared-appreciation, or shared equity, arrangement. Under this arrangement, your family, friends, or even a third-party may buy a portion of the home and thus share in any appreciation when the home is sold. The owner/occupant usually pays the mortgage, property taxes, and all maintenance costs, but all investors’ names are usually on the mortgage. There are companies that can help you find such an investor if your family can’t participate.

4. Get help from your family. Perhaps a family member will loan you money for the downpayment and/or act as a cosigner for the mortgage. Lenders often like to have a cosigner if you have little credit history

5. Lease with the option to buy. Renting the home for a year or more will give you the chance to save more toward your downpayment. And in many cases, owners will apply some of the rental amount toward the purchase price. You usually have to pay a small, nonrefundable option fee to the owner.

6. See if you can qualify for a short-term second mortgage to give you the money to make a higher downpayment. This may be possible if you have a good income and little other debt.

Happy Fouth of July!

Tips for Holding a Yard Sale

Hold a yard sale to reduce the clutter in your home and get rid of items you don’t want to move.

1. Check with your city government to see if you need a permit or license.

2. See if neighbors want to participate and have a “block” sale to attract more visitors.

3. Advertise. Put an ad in free classified papers, and put up signs and balloons at major intersections and in stores near your home.

4. Price items ahead and attach prices with removable stickers. Remember, yard sales are supposed to be bargains, so don’t try to sell anything of significant value this way.

5. Check items before the sale to be sure you haven’t including something you want by mistake.

6. Keep pets away from the sale.

7. Display everything neatly and individually so customers don’t have to dig through boxes.

8. Have an electrical outlet so buyers can test appliances.

9. Have plenty of bags and newspaper for wrapping fragile items.

10. Get enough change, and keep a close eye on your cash.

How Big a Mortgage Can I Afford?

Not only does owning a home give you a haven for yourself and your family, it makes great financial sense, too.

This calculation assumes a 28 percent income tax bracket. If your bracket is higher, your savings will be, too.

Rent: _________________________

Multiplier: X 1.32

Mortgage payment: __________________

Because of tax deductions, you can make a mortgage payment—including taxes and insurance—that is approximately one-third larger than your current rent payment and end up with the same amount of income.

For more help, use Fannie Mae’s online mortgage calculators at
http://www.fanniemae.com/homebuyers/calculators/index.jhtml?p=Resources&s=Calculators

8 Steps to Getting Your Finances in Order

Develop a family budget. Instead of budgeting what you’d like to spend, use receipts to create a budget for what you actually spent over the last six months. One advantage of this approach is that it factors in unexpected expenses, such as car repairs, illnesses, etc., as well as predictable costs such as rent.

Reduce your debt. Generally speaking, lenders look for a total debt load of no more than 36 percent of income. Since this figure includes your mortgage, which typically ranges between 25 percent and 28 percent of income, you need to get the rest of installment debt—car loans, student loans, revolving balances on credit cards—down to between 8 percent and 10 percent of your total income.

Get a handle on expenses. You probably know how much you spend on rent and utilities, but little expenses add up. Try writing down everything you spend for one month. You’ll probably see some great ways to save.

Increase your income. It may be necessary to take on a second, part-time job to get your income at a high-enough level to qualify for the home you want.

Save for a downpayment. Although it’s possible to get a mortgage with only 5 percent down—or even less in some cases—you can usually get a better rate and a lower overall cost if you put down more. Shoot for saving a 20 percent downpayment.

Create a house fund. Don’t just plan on saving whatever’s left toward a downpayment. Instead decide on a certain amount a month you want to save, then put it away as you pay your monthly bills.

Keep your job. While you don’t need to be in the same job forever to qualify, having a job for less than two years may mean you have to pay a higher interest rate.

Establish a good credit history. Get a credit card and make payments by the due date. Do the same for all your other bills. Pay off the entire balance promptly.

10 Ways to Make Your House More Salable

1. Get rid of clutter. Throw out or file stacks of newspapers and magazines. Pack away most of your small decorative items. Store out-of-season clothing to make closets seem roomier. Clean out the garage.

2. Wash your windows and screens to let more light into the interior.

3. Keep everything extra clean. Wash fingerprints from light switch plates. Mop and wax floors. Clean the stove and refrigerator. A clean house makes a better first impression and convinces buyers that the home has been well cared for.

4. Get rid of smells. Clean carpeting and drapes to eliminate cooking odors, smoke, and pet smells. Open the windows.

5. Put higher wattage bulbs in light sockets to make rooms seem brighter, especially basements and other dark rooms. Replace any burnt-out bulbs.

6. Make minor repairs that can create a bad impression. Small problems, such as sticky doors, torn screens, cracked caulking, or a dripping faucet, may seem trivial, but they’ll give buyers the impression that the house isn’t well maintained.

7. Tidy your yard. Cut the grass, rake the leaves, trim the bushes, and edge the walks. Put a pot or two of bright flowers near the entryway.

8. Patch holes in your driveway and reapply sealant, if applicable.

9. Clean your gutters.

10. Polish your front doorknob and door numbers.

Does Moving Up Make Sense?

Answer these questions to help you decide whether moving up makes sense.

1. How much equity do you have in your home? Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of paying a mortgage, but if you’ve owned your home for a number of years, you may have significant unrealized gains.

2. Has your income increased enough to cover the extra mortgage costs and the costs of moving?

3. Does your neighborhood still meet your needs? For example, if you’ve had children, the quality of the schools may be more of a concern now than when you first purchased.

4. Can you add on or remodel? If you have a large yard, there might be room to expand your home. If not, your options may be limited. Also, do you want to undertake the headaches of remodeling?

5. How is the home market? If it’s good, you may get top dollar for your home.

6. How are interest rates? A low rate not only helps you buy more home, but also makes it easier to find a buyer.

The Pros and Cons of Condos

Condominiums and townhouses offer an affordable option to single-family homes in most areas. But consider these facts before you buy.

Storage. Some condos have storage lockers, but usually there are no attics or basements to store belongings.

Outdoor space. Yards and outdoor areas are usually smaller in condos, so if you like to garden or entertain outdoors, this may not be a good fit. However, if you hate yard work, this may be the perfect option for you.

Amenities. Many condo properties have swimming pools, fitness centers, and other facilities that would be very expensive in a single-family home.

Maintenance. Many condos have onsite maintenance personnel to care for common areas, do repairs in your unit, and let in workers when you’re not home.

Security. Many condos have keyed entries and or even door attendants. Plus, you’ll be closer to other people in case of an emergency.

Reserve funds and association fees. Although fees generally help pay for amenities and provide savings for future repairs, you will have to pay the fees agreed to by the condo board, whether or not you’re interested in the amenity or not.

Resale. The ease of selling your unit is more dependent on what else is for sale in your building, since units are usually fairly similar. Single-family homes usually are more individual.

Freedom. Although you have a vote, the rules of the condo association can affect your ability to use your property. For example, some condos prohibit home-based businesses. Others prohibit pets. Read the covenants, restrictions, and bylaws of the condo carefully before you make an offer.

Proximity. You’re much closer to your neighbors in a condo or townhome. If possible, try to meet your closest prospective neighbors before making a decision.

5 Things to Understand About Title Insurance

1. It protects your ownership right to your home both from fraudulent claims against your ownership and from mistakes made in earlier sales, such as mistake in the spelling of a person’s name or an inaccurate description of the property.

2. It’s a one-time cost usually based on the price of the property.

3. It’s usually paid for by the sellers.

4. There are both lender title policies, which protect the lender, and owner title policies, which protect you. The lender will probably require a lender policy.

5. Discounts on premiums are sometimes available if the home has been bought within only a few years since not as much work is required to check the title. Ask the title company if this discount is available.

Hidden Home Defects to Watch For

No home is flawless, but certain physical problems can be expensive. Watch for:

Water leaks. Look for stains on ceilings and near the baseboards, especially in basements or attics.
Shifting foundations. Look for large cracks along the home’s foundation.
Drainage. Look for standing water, either around the foundation of the home of in the yard.
Termites. Look for weakened or grooved wood, especially near ground level.
Worn roofs. Look for broken or missing copings and buckled shingles as well as water spots on ceilings.
Inadequate wiring. Look for antiquated fuse boxes, extension cords (indicating insufficient outlets), and outlets without a place to plug in the grounding prong.
Plumbing problems. Very low water pressure, banging in pipes.

New Year... New Home!

The beginning of the year is always a great time to make resolutions, check on goals, and start something new. This year, why not start looking for a new home.

Are you still renting? Do you know that there are many different types of loan programs that can get almost everyone into home ownership! You no longer need to put 20% down. You can actually get 100% financing! Need more information about this? Send me an email or give me a call. I can get you in touch with several lenders ready to help you make your dreams of homeownership come true. Don't forget, there are tax benefits to owning a home. Give me a call for more information.

Has your family grown? Is that starter home feeling smaller and smaller these days? Get in touch with me. I can see how much you could make if you put your house on the market, get you in touch with a lender to finance your next home, and help you every step of the way.

Do you have the opposite situation? Have all of your children gone off to college or started their own family? Tired of looking at the empty rooms? Need a 1 story home? Let me help you discover the best home for you now.

From House Hunting to the Closing, I am here to work for You!