First time home buyers could benefit from the low prices, but lending institutions are being strict with regards to loan approvals. Cash investors are particularly interested with the foreclosed properties because they can take advantage of a good deal, and ask for a bargain price. Your average home buyer just doesn’t have the cash on hand to take advantage of these deals.

Sales of pre-owned homes rose a bit in January, and the number of first-time buyers went down 29% to its lowest level in two years. Foreclosure sales are making up 37% of all real estate sales. Cash transactions are 32% of all home sales – twice as high than the previous two years. In Florida, Arizona and Nevada, where foreclosures are especially rampant, sales of at-risk homes are 2/3 of total home sales. In Florida alone, foreclosure sales accounted for 63% of all sales in January. In Florida and Arizona, the number was closer to 72%.

First-time buyers are having difficulty in acquiring houses even if it is at a low price because lenders have tightened their standards for credit approval. This made mortgage loan approval harder to acquire. Banks and lenders are now requiring a bigger down payment when purchasing a house, unlike before where buyers could get a house with little or no down payment at all. The average down payment went up by 22% last year in 9 key cities in the US.

Because of it’s importance, you should make sure it is well designed; inside and out. If you eventually decide to sell a home, then you should remember this: you are not only selling the structure. You are also selling a place where someone else will spend their life. They will certainly want to spend it in a nice home. Research shows that a home that has a good interior design is more likely to catch the eye of potential buyers. If you set up the interior design of your home with the visual effects in mind, you are more likely to sell your home quickly.

These days, most people like the interior style to be a mix of new trends and traditional ones. When people are looking to buy a home, they generally ask questions like these:

1. What kind of area is the house located in?
2. What is the interior style of the house?
3. What type of landscape surrounds the property?
4. When was the home built?
5. How will it stand up to natural disasters?

These are a few of the important questions that are frequently asked by home buyers. If your home can properly satisfy these questions, then you are more likely to sell your house for your preferred price. Most people want their home to act as a statement of their style. This is only possible with the help of good interior design. So, when you want to sell your home, don’t try to do it all on your own. Call an interior designer today.

According to my sources, finding a house that meets your needs or wants is pretty easy right now as that market has been depressed as well and there are some very good buys out there just waiting for the right buyer. On the other hand, the mortgage is another story. If your first home is paid off it’s relatively easy to obtain a mortgage on a second home. However, if you have an existing mortgage on a home, getting another mortgage has some strict requirements based on the type of loan and the amount of money you are putting down on the home. You will need to check and double check with the loan or mortgage officer you are utilizing for the loan.

Of course, here in Nashville, there are several areas where you can buy your first home and never feel like you have to leave to be on vacation! There are many small neighborhoods that back up to the Cumberland River, The Harpeth River or Old Hickory Lake that have homes for sale and are available. Being able to swim, canoe, kayak or go water skiing or fishing right out your front or back door is a real treat. You can have a second home feeling in our primary home.

Unfortunately, not every area has the luxury of having this much water and sport around so they will have to settle for buying a second home; if they need and can qualify for a mortgage.

This particular real estate scam is not new. In fact, it was a couple of years ago it was talked about quite a lot on the news. It goes something like this; the bad guy scours the MLS to find a very nice property.  They scrape the listing for pictures and information then go to websites like Craigslist.org and HotPads.com to post the information they pulled from property that is for sale on the MLS and post it as a rental property in the area.

With these types of scams, the “landlord” makes some kind of excuse for being unavailable; traveling, already moved, etc., as well as being unreachable by phone; overseas, on a cruise, etc. So they are only available by email. which is a huge RED FLAG!

After several exchanges, the victims are instructed to send a deposit and first month’s rent (that’s a lot of money for most of these homes) and once received they will instruct the person to set up a time with the realtor to see the inside of the home and get the keys. The problem is that the realtor has the property listed with the real owner and can only inform the victim that they have been scammed out of a lot of money.

So, how do you protect yourself? Just follow the following rules and you should be able to detect the bad guys from those that are legitimate.

• Don’t respond to a listing that does not have a local phone number and address.
• Insist on meeting the landlord or property management company in person or look up the property on MLS and call the listing Realtor.
• Never send money to anyone via the mail or hand over money in person without a signed contract in hand.
• Stay away from properties that are renting way below market value. (Check with a Realtor as they can help you determine this) and remember: If it’s too good to be true, it most likely is.

Pass this information along to everyone you know. This way we can make as many people as possible aware of this scam and put a stop to it.

Yet the reality is Nashville is doing well comparatively. There has been a rumbling as of late that more and more transactions are for retail residential properties and not distressed properties that have been the dominate transaction for awhile now. The reason this is good news is it means people are now looking beyond the “deal” to get homes they want to live in right away. It also means that sellers have a chance against the glut of distressed sellers and foreclosed properties.

While there are still a lot of bank owned properties and homes that have agreements for short sales, the banks are so far behind on many of these transactions that buyers tire of waiting and turn to buying homes that are ready to be bought and moved into quickly. This is unfortunate for the properties that are sitting on the market and wasting away. In fact, more and more homes that have gone through the process of foreclosure have to go through mold remediation before selling because they have sat without proper air ventilation. This is a cautionary tale for those waiting on these types of homes to buy.

So while there are plenty of supposed “deals” on the market, it looks like sellers are once again viable options for buyers who are ready to purchase and move in quicker than later in the Nashville, Tennessee area.

If you’re prepared to negotiate the price of a home, you should also be prepared to walk away from that home if the price is not lowered to what you wanted. This is hard for many homebuyers that cannot let go of the home of their dreams. Once you’ve determined a price that’s reasonable for the home (based on the research you’ve done) stick to that price. If it’s not met, you may need to walk away from the home in search of a better fit. Once you have put in an offer on the home, based on the price you have determined, set a deadline. Ask that the homeowners respond within 48 hours, because setting a tight deadline can help negotiate the price of the house in your favor. As always, being pre-approved for a home loan can help move the ball into your court, as homeowners will understand you already have the power to buy the house if you choose.

A well-constructed home buying contract will include the sale price of the home, as well as the financial terms according to the seller. The contract will also include the seller’s binding promise to provide the title of the home. Remember, sales contracts are to protect the buyer and the seller. Information about the deed, target closing date, and clarification about who will pay to insure the title, survey the property and the closing costs are also included in a thorough home offer. The home offer section outlining buyers and sellers is often considered the most important part of the contract, so if you have any concerns or doubts about this section, be sure to go over it with your mortgage lender. Ask any questions and alleviate any worries before signing the home offer to be sure you are getting into a situation you feel comfortable with.

If you have bad credit, but have other assets like life insurance or a 401K, these may help you get approved for a home loan. Lenders will see that if you are in a situation where you can’t pay your mortgage payment, you do have assets that can cover the costs. Job stability can also help get you approved for a home loan. If you’ve been with the same company for more than five years and can prove that you have received regular raises, this will fare well with the banks. Explaining that you plan to stay in your home for ten years will also improve your chances of getting approved for a home loan, because it shows your commitment to the home, as well as to your mortgage. Lastly, by increasing your down payment you can also increase your chances of getting approved for a home loan. Instead of ten percent, try to put down twenty percent of the cost of the home as a down payment. It’s possible to get approved for a home loan with bad credit.

First, it’s important to know what you can afford. Analyze your finances (with the help of a financial professional) before you even look at your first home. That way, you can be realistic in the types of homes you are looking at. You should also decide how long you plan on staying in the first home you purchase. Spreading out your mortgage, by staying in your first-time house for many years, can save you many upfront costs. Getting pre-approved for a loan is also a beneficial step because it will allow you great control of the home-buying process when the seller understands you already have the money to purchase the home. Lastly, you should understand the current real estate market. Research the average price of homes in the area you’re looking for, and understand the demographic that typically purchases there. The more educated you become, the more successful your first-time home buying process will become.

Many Americans do not know their credit score, and this lack of knowledge can hurt them. The more information you have about your credit score, the better prepared you are to improve or maintain the score in order to qualify for a first-time mortgage, or to refinance your existing mortgage. To improve your credit score, pay your bills on time, and don’t overdraft your banking accounts. Maintain your credit score by not incurring too much debt and by not allowing yourself too many credit cards. Your credit score directly affects the type of home loan you will qualify for, so find out your credit score as soon as possible to qualify for the best home loan today.