Home Loans- Avoiding Pitfalls and Ensuring Your Financial Security
Posted on | September 29, 2011 | No Comments
There comes a time in every person’s life when buying a home seems the right thing to do and, for that to happen, getting a loan is the most likely manner to achieve such goal. Having your own house where you will be raising a family and live happily ever after is always an exciting dream, but the problem is sometimes all that excitement blinds people and drives them to make irrational decisions they will come to regret in the future.
When applying for a home loan, it is extremely important to avoid pitfalls and to collect the necessary information you need in order to choose a lender that provides advantageous terms&conditions. First of all, avoid signing a contract with a loaner that doesn’t provide clarity of terms, as it is crucial to perfectly understand what you’re signing for and have everything explained before signing the contract. Any ambiguous or unclear terms might is likely to indicate that the loaner is not trustworthy and reliable, so you should look somewhere else.
Not getting a loan pre-approval is another pitfall you should avoid when applying for a home loan. You should know for sure if you are eligible for the loan you plan to obtain, given the multitude of factors and criteria the approval is based on. Don’t get all too excited of having found the house of your dreams but no lender to give you the money you need because you have a bad credit score or bankruptcies on your credit history. Make sure you are not wasting time and money looking for a house you’ll not be able to pay for.
Also, pay close attention to the interest rate on your loan. Find out what you will be charged after the initial rate period expires. Usually, this happens after maximum three years, after which you will be charged the prime rate at that specific moment, plus additional fees. It should be all in the contract you’re signing, so make sure you avoid these pitfalls when applying for a home loan.
Ergonomic Living for Highest Comfort
Posted on | September 20, 2011 | No Comments
Before we discuss ergonomic living, let us discuss what ergonomic is. Ergonomic denotes the “scientific study of the efficiency of people in the workplace”. This is actually the science of the relationship between workers and their environment. This is especially true when it comes to the relationship between the workers and the equipment they use to make things such as products, furniture, and lifestyles in a comfortable and efficient manner.
So when we say, ergonomic living, we basically mean comfort and efficiency in our living space be that space at home or work. Comfort may be physical, intuitive and mental. Physical means how a product feels, by intuitive we refer to how easily the product can be used and mental means how we feel before, during and after use. Similarly, by efficiency it means the process of how easily the product can be made in a safe and productive way.
One must be aware that good ergonomic practices for one’s environment can facilitate an improvement to ones quality of life. This is because the environment plays an important role in shaping your mood, your energy level, your morale, your productivity and even your health.
Under agronomic practice you need proper furniture, appliances, carpets and lighting that are right for you. Having chairs that are the correct height, countertops where you can comfortably cook and a bed that is just the right height and depth for you all is important. Even color has an affect on mood and should be considered.
We don’t think about sleep but it makes up a significant part of our lives. The time we spend sleeping should be comfortable so we get a good night sleep every night. Adjustable beds, facilitates manipulation of a person’s sleeping needs by providing maximum comfort. It allows you to raise or lower the head and foot of you bed as per the requirements of your body. Materials used for designing this kind of bed are normally of highest quality. Latex or memory foam mattresses are used to compliment a standard quality adjustable bed. This kind of bed can be easily used and perfectly controlled by using a hand remote.
The importance of modern day life style also being ergonomic is becoming more and more apparent every day. We have to pay attention to the way we live as much as the way we work.
You Choose: Stay Informed or Not
Posted on | September 7, 2011 | No Comments
This is one of the few posts that is not related to the mortgage loan business so I apologize in advance for those who look here expecting something about home loans. There are topics that I feel from time are important enough to place here and I hope you forgive my indulgence.
I am amazed when I ask certain people why they think the way they do and they can’t answer me other than recite what they have heard on the news or TV talk show entertainment news program on the left or right. You know what I’m talking about so why name them?
Instead of digging to see if what is being spouted is true, many of us swallow hook, line and sinker to believe what are sometimes ball-faced lies designed for us to roll over and let the powers that be simply fillet us! And it is much deserved since we don’t ask questions and challenge much in our world anymore.
Well, you might like getting filleted but I don’t. I am a bit cantankerous and skeptical about just about everything. I wasn’t raised to be this way when it came to my country but from what I have observed over the past 20 years there’s not much I believe that comes out of anyone’s mouth that holds an elected office. I have been teased and hammered a few times by friends and family because of this and it’s okay because I can take it.
However, I feel somewhat vindicated at last after reading Mike Lofgren’s article Goodbye to All That: Reflections of a GOP Operative Who Left the Cult.
For all my Democrat friends and family members that think Mr. Lofgren’s information is all about the Republican party, I assure you it is not. This has enough rot to go around to all parties including the one with the label Tea.
Here’s how the article starts just to give you a taste.
Barbara Stanwyck: “We’re both rotten!”
Fred MacMurray: “Yeah – only you’re a little more rotten.” -”Double Indemnity” (1944)
Another favorite passage with regard to the so called “debt ceiling” is below.
“The debt ceiling extension is not the only example of this sort of political terrorism. Republicans were willing to lay off 4,000 Federal Aviation Administration (FAA) employees, 70,000 private construction workers and let FAA safety inspectors work without pay, in fact, forcing them to pay for their own work-related travel – how prudent is that? – in order to strong arm some union-busting provisions into the FAA reauthorization.
Everyone knows that in a hostage situation, the reckless and amoral actor has the negotiating upper hand over the cautious and responsible actor because the latter is actually concerned about the life of the hostage, while the former does not care. This fact, which ought to be obvious, has nevertheless caused confusion among the professional pundit class, which is mostly still stuck in the Bob Dole era in terms of its orientation. For instance, Ezra Klein wrote of his puzzlement over the fact that while House Republicans essentially won the debt ceiling fight, enough of them were sufficiently dissatisfied that they might still scuttle the deal. Of course they might – the attitude of many freshman Republicans to national default was “bring it on!”
It should have been evident to clear-eyed observers that the Republican Party is becoming less and less like a traditional political party in a representative democracy and becoming more like an apocalyptic cult, or one of the intensely ideological authoritarian parties of 20th century Europe. This trend has several implications, none of them pleasant.”
If you don’t like getting filleted you might want to read it. It’s long and worth every word.
Loans Not Closing At The Last Minute
Posted on | August 23, 2011 | No Comments
Even though I have retired from the mortgage industry, I keep in touch with friends and old associates on both the mortgage side and real estate side. One of the most surprising things I am hearing more and more often is the deal fell through at the last minute. It’s surprising because I thought the documentation requirements being as strenuous as they now are that you would know whether a deal would go through pretty quick. However, it looks like I was wrong.
I found a very interesting article at www.dailyfinance.com about new home sales falling to a place where it could be the worst in recorded history. The statistics comparing the Great Recession with the Great Depression at the end was telling. Anyone interested in how and why housing has so much to do with the overall economic condition of the country should read it. New-home sales fall, 2011 Could Be Worst Year Yet
There has always been weird things that could and would happen before closing and it would drive everyone crazy. But today, there is an undercurrent of uncertainty that some say is manufactured by the media, etc. However, when a family is purchasing a home and a job is lost before closing or an impending business that is closing its doors, that’s real for that family and nothing, good or bad, that is said in the media can change their reality.
Others have lost homes or are struggling to make their payments. However, over the last year I’ve seen things get better for a lot of people. Let’s hope that in the near future that will help the housing market get back on its feet and our economy boom once again.
Predictions Wrong – Rates Continue to be at All Times Lows
Posted on | August 17, 2011 | No Comments
If there has been one thing proven during the last several years is that no one can really predict what will happen in the world of finance. Ratings companies missed it as did regulators and all those that say from one day to another the today’s the day or next week it will be better.
Before retiring from the mortgage business I would receive at least one call each week from someone asking me to tell them when rates will be at their lowest. I always told them the truth; I don’t have a crystal ball and neither does anyone else.
So here’s my theory for those of you who care about the best time to make a decision on buying a new home or refinancing the one you are in. You start with today because that’s all you really have to work with right now; this moment. Find out what the rate is for the type of loan you want and know that for right now that’s what it is.
If you are buying a new home, sit down with your loan officer and calculate what the overall payment will be and see if it fits into your budget the way you envisioned. If so, it’s a good rate and price for you and you can move forward with the help of your lender and realtor. If it’s not within your budget you are either looking at a house that is not affordable for you at the moment or the rates are too high right now.
If you are considering a refinance to your current loan, take your most recent mortgage statement to a lender and let them help you determine if it makes sense to refinance your current loan. This is more than just comparing payments because the new loan has additional costs to it that need to be factored in. If you make that cost up within the first two to three years due to a lower payment, it just might make sense to refinance your loan. However, when in doubt, get several opinions before moving forward.
Either way, now is a great time to check it out because rates are low right now and no one really knows what will happen tomorrow, next week or next year. That’s the truth!
Beware of Real Estate Scams; Especially in Hard Times
Posted on | August 11, 2011 | No Comments
It’s always unfortunate to hear when an already struggling family is duped by unscrupulous individuals; especially when it could have easily been avoided if they had done just a couple of things to make sure it was legitimate.
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.
The 2011 Tomato Art Fest is Right around the Corner
Posted on | August 4, 2011 | No Comments
As I checked my calendar for August I realized that the 2011 Tomato Art Fest is coming up on Saturday, August 13th. It starts at 10 am and runs until 6 pm – but don’t leave because the music continues until 9:30 pm and there is always some great music to be heard.
One of my favorite things about the Tomato Fest this is the theme, which is; The Tomato – A Uniter, not a Divider – Bringing together Fruits and Vegetables.
If only Washington could be so brave as to bring all the “fruits” and “vegetables” together. We could celebrate more than a community coming together for a day. Oh, but I regress… let’s get back to The Tomato Art Fest.
If you have been before then you already know how much fun and excitement there is to be had by all. Art and crafts for the grown-ups (note; I did not say adults), a kids area for the children in tow, music for just about everyone (just hang around long enough and you will hear something you like) and food for everyone. It’s just a great time to be had by all.
You will find all this fun going on across the river on the east side of downtown Nashville in a wonderful historical part of town called, East Nashville. Located at Five Point’s, which is located at the corner’s of 11th & Woodland, the Tomato Art Fest is mainly outdoors so make sure you are prepared for hot weather; did I say HOT weather?!
Bring or be prepared to buy a lot of water and don’t worry so much about parking. Most of the locals will walk or ride in leaving those visiting the area pretty good access. If you’re luck enough to know someone who lives in the neighborhood, they may let you park at their house and walk in as well. However, once you are there, make a day out of it. You can’t miss with a completely free day of wonderful tomato art, tomato fun and tomato worship (don’t be offended, it’s just an endearment for those of us who grow the almighty fruit that is viewed and a vegetable).
The goal is to have fun. Come planning to make it a great day!
Why Co-signing a Loan Can Ruin Other People’s Credit; Along With Yours
Posted on | July 25, 2011 | 1 Comment
Every loan officer has experienced the first time home owner come into the office excited about their first home. They may be buying because they are going to be married soon or are newly married or starting and growing a family. It’s not uncommon for them to think that they have done everything they should to get ready for a home including; saving for a down payment, keeping their credit obligations paid in time and keeping the ratio of credit below that critical 35 to 40 %. On paper they look like they will be able to afford what they want and can sail through the process.
Then credit is pulled and they are shocked to find late pays on loans they have never heard of that are in their name. Most tend to be student loans that parents have co-signed and defaulted on but I’ve seen car and credit cards in the kids names that the children have either never known about or thought they were being paid by parents on time and in good standing.
Even the parents have been shocked a time or two because they thought the debt was rolled into a bankruptcy or debt reduction plan. The truth is many student loans cannot be included in bankruptcy procedures and most debts will revert to the other name holder at some point.
What this means for the person or persons trying to purchase their first home is that they can’t qualify due to debt ratios, late pays or default and can put them back for years financially. While this is normally seen in families, I have also seen it in past roommates and friends that have tried to help or helped and have gotten burned.
It’s extremely important that if you need a cosigner or have been asked to co-sign any type of loan, be aware of the downfalls to your own credit that can take place if you or the other party ever defaults. Starting from zero is a lot easier than starting in the negative and could take years to recover. No one wants this to happen so make these choices carefully.
Housing in Nashville, TN
Posted on | July 20, 2011 | No Comments
One of the things that have been abundantly clear in the last couple of years is that housing in many parts of the United States has been depressed. However, there are certain areas that have done better than others and Nashville, TN has been one of those fortunate areas. With that said, there are a lot of people in the area who have lost their homes to foreclosure, sold their homes to see less than, little or no money from the sale or just gave up on selling altogether because they are upside down on their property. For them it doesn’t seem that the Nashville area has faired better than other areas even though statistics say differently, which is understandable.
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.
Tags: bank owned properties > Buying a home > Real Estate
Avoiding Closing Cost Surprises
Posted on | July 10, 2011 | No Comments
Closing on a house can be an exciting time, especially if you’ve done your research, viewed countless homes, and agonized over the decision to buy. Being prepared for closing costs is an important part of the process, as many new homeowners are left with sticker shock after they close on their first home.
There are routine fees associated with any home purchase. Lender feeds and third party fees (inspection, attorney, title companies) can add up and if you’re not prepared they can be quite a surprise. Some homebuyers ask the seller to pay for the closing costs and include this in their offer. Sellers who are eager to close the deal may be more willing to pay at least some of the closing costs. It may also be helpful to get a Good Faith Estimate from your lender that includes all the costs associated with your home purchase, including inspector feeds and appraisal fees. If possible, negotiate with several different lenders to find the best deal, and the most upfront pricing. Feel comfortable with every step of the closing process, and don’t let closing costs take you by surprise.