That's the title of the cover story on my newsletter this month . Included are tips on making an offer in this type of market.
What kind of financial incentives can you ask for?
How to negotiate winning deals with your lender?
What closing costs can you get waived?
For my complete newsletter go to www.mysanmateorealestate.com and click on "Monthly Newsletter." You can opt to have it sent to you monthly or just view it one time.
Thanks.
Saturday, September 15, 2007
Monday, September 10, 2007
DOWN PAYMENT DILEMMAS
One of the most frequent questions homebuyers ask me is, “How much money do I need for a down payment?” Fortunately, there are some mortgage options available that only require a down payment of 5% or less of the purchase price. But remember the larger the down payment, the less you have to borrow and the less you’ll have to pay in your monthly mortgage payment.
Loans with less than the industry standard of 20% down generally require a mortgage insurance policy to secure the loan. Also keep in mind that you’ll need money for closing costs, moving expenses and possibly, repairs, decorating and landscaping.
Lenders take all this into account when they are deciding the maximum loan amount that you can afford. They are also interested in where you got the money for the down payment. What business is it of theirs? Well, consider how carefully lenders look at your earnings, assets and credit history. They naturally are concerned that if you borrowed the money for your down payment, you may be over-extended. Expect lenders to look with suspicion on recent large deposits to your savings account. Even genuine gifts from family members will probably require documentation, if they allow them at all.
If you’d like a copy of my special report on how to buy a home with little or no down, dial this Toll Free 24-Hour Recorded Information Hotline – 1-800-530-0076 and enter extension #1035. You may have the report faxed or mailed to you.
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Loans with less than the industry standard of 20% down generally require a mortgage insurance policy to secure the loan. Also keep in mind that you’ll need money for closing costs, moving expenses and possibly, repairs, decorating and landscaping.
Lenders take all this into account when they are deciding the maximum loan amount that you can afford. They are also interested in where you got the money for the down payment. What business is it of theirs? Well, consider how carefully lenders look at your earnings, assets and credit history. They naturally are concerned that if you borrowed the money for your down payment, you may be over-extended. Expect lenders to look with suspicion on recent large deposits to your savings account. Even genuine gifts from family members will probably require documentation, if they allow them at all.
If you’d like a copy of my special report on how to buy a home with little or no down, dial this Toll Free 24-Hour Recorded Information Hotline – 1-800-530-0076 and enter extension #1035. You may have the report faxed or mailed to you.
.
Wednesday, September 5, 2007
It's a Buyer's AND a Seller's Market.
There are a number of Real Estate "gurus" that I monitor - mostly to improve my skills, provide a different perspective and challenge my thinking. One such person is Randy Roussie and today he offered these thoughts regarding today's market. His comments are more national in nature because here in San Mateo County, prices have actually risen on average 2% in the first and second quarters of 2007. Randy says:
It's a Buyer's Market. After 4 years it is finally here - a buyer's market. What does this mean? It means you will pay less for a home - and that's good news for all buyers.
But what about Sellers - is this a good time for homeowners to sell? You bet, and here's why. Let's say you live in a $500,000 home and you are going to move up to a $1,000,000 home. Let's also say the market has decreased 10% over the past year. So your home decreased $50,000 while the home you want to purchase has decreased $100,000. In other words, you save $50,000.
That's why its is good for both sellers and buyers to make selling and buying decisions when the market is in the "buyer's" favor.
It means you will carry less mortgage too. Since yoiu save $50,000, it also means you will need less of a mortgage. Now that's a win-win for sellers and buyers. So don't delay. Now is the BEST TIME to find your next dream home!
Food for thought.
It's a Buyer's Market. After 4 years it is finally here - a buyer's market. What does this mean? It means you will pay less for a home - and that's good news for all buyers.
But what about Sellers - is this a good time for homeowners to sell? You bet, and here's why. Let's say you live in a $500,000 home and you are going to move up to a $1,000,000 home. Let's also say the market has decreased 10% over the past year. So your home decreased $50,000 while the home you want to purchase has decreased $100,000. In other words, you save $50,000.
That's why its is good for both sellers and buyers to make selling and buying decisions when the market is in the "buyer's" favor.
It means you will carry less mortgage too. Since yoiu save $50,000, it also means you will need less of a mortgage. Now that's a win-win for sellers and buyers. So don't delay. Now is the BEST TIME to find your next dream home!
Food for thought.
Monday, September 3, 2007
How to Manage Your Retirement Without Going Broke
Real estate has become the buzz word for savvy investors who have been watching their IRAs and 401ks lose money with little or no gain in the stock market. At least in real estate you have a solid, tangible asset with a deed of trust and title insurance; and there are no penalties or early withdrawal fees involved.
That being said, the first thing you need to do is some retirement thinking. How much will you need to receive every month when you retire? Did you know that our Social Security system pays for 89% of the total American retirement income? That means that nine out of 10 retirees depend on Social Security, averaging only $1,250 per month! Is that enough for you? Did you know that for every $5,000 per month that you’d like to receive in guaranteed retirement income you need a nest egg of over $2 million dollars? How do you do that?
Your retirement is all about investing and holding for 10, 20 years or more. Homes that sold 30 years ago in San Jose for $25,000 are today worth $750,000 to $1 million dollars. We have identified key profitable areas in California with exactly the same growth characteristics that Silicon Valley had back then. We show you how your IRA can acquire properties at a low price now before population arrives and sell them when they’ve appreciated enough to satisfy your retirement goals. If you have at least $30,000 sitting in your IRA or 401(K) you can jumpstart your retirement now by contacting me to arrange a personal and confidential meeting.
That being said, the first thing you need to do is some retirement thinking. How much will you need to receive every month when you retire? Did you know that our Social Security system pays for 89% of the total American retirement income? That means that nine out of 10 retirees depend on Social Security, averaging only $1,250 per month! Is that enough for you? Did you know that for every $5,000 per month that you’d like to receive in guaranteed retirement income you need a nest egg of over $2 million dollars? How do you do that?
Your retirement is all about investing and holding for 10, 20 years or more. Homes that sold 30 years ago in San Jose for $25,000 are today worth $750,000 to $1 million dollars. We have identified key profitable areas in California with exactly the same growth characteristics that Silicon Valley had back then. We show you how your IRA can acquire properties at a low price now before population arrives and sell them when they’ve appreciated enough to satisfy your retirement goals. If you have at least $30,000 sitting in your IRA or 401(K) you can jumpstart your retirement now by contacting me to arrange a personal and confidential meeting.
Sunday, September 2, 2007
I Need to Invest, But What???
It's Labor Day Weekend and most folks are off taking it easy. That is unless you're in real estate. Then you end up like me, working the phones and meeting prospects and writing some ideas down in my blog to share with whomever.
It this case, I have a prospect discussing properties with me. She wants to buy something in the central peninsula area that she'll rent for a few years and perhaps move into after that. Everything she likes is in the $750,000 - $975,000 area and many of those need some fair amount of fix up investment before she'll be comfortable renting them out.
Recognizing that break-even cash flow is basically impossible in this market, I asked her what she was trying to accomplish with such a purchase. She wasn't really sure. She knew she wanted to make money, with little to no effort as a result of her investment. Good plan. Most investors don't even get to the point that they should be making money.
Now I sell houses for a living, but it's hard for me to do that if it doesn't meet the needs of my client because I have this ethical quirk whirling around inside me. That doesn't mean I can't help her. I did my best to probe what her needs were and got her to explain that she's concerned about her retirement well-being. Now that I told her, is an entirely different situation, but one that is managable.
Tomorrow - How to manage your retirement without going broke.
It this case, I have a prospect discussing properties with me. She wants to buy something in the central peninsula area that she'll rent for a few years and perhaps move into after that. Everything she likes is in the $750,000 - $975,000 area and many of those need some fair amount of fix up investment before she'll be comfortable renting them out.
Recognizing that break-even cash flow is basically impossible in this market, I asked her what she was trying to accomplish with such a purchase. She wasn't really sure. She knew she wanted to make money, with little to no effort as a result of her investment. Good plan. Most investors don't even get to the point that they should be making money.
Now I sell houses for a living, but it's hard for me to do that if it doesn't meet the needs of my client because I have this ethical quirk whirling around inside me. That doesn't mean I can't help her. I did my best to probe what her needs were and got her to explain that she's concerned about her retirement well-being. Now that I told her, is an entirely different situation, but one that is managable.
Tomorrow - How to manage your retirement without going broke.
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