Buying A Home With Bad Credit

Buying A Home With Bad Credit

When it comes to buying a home, having bad credit is not the end of the world. Your future doesn’t have to be defined by your past. Whether you have suffered from a bankruptcy, foreclosure or some type of financial hardship that resulted in late or missed payments, there are lenders who specialize in financing for those with less-than-perfect credit. You will likely have to produce a larger down payment and/or pay higher interest rates than someone who has good credit, but the important thing to know is that buying a home is an option for you.

Bankruptcy & Foreclosure

If either a bankruptcy or foreclosure is on your credit report, it could take some time before you can qualify for a good interest rate on a mortgage. FHA loans, which are especially desirable for those with past credit problems and first-time home buyers, are backed by the government and offer a low down payment and interest rate option for those who qualify. Although the notation remains for up to 10 years, individuals with a bankruptcy or foreclosure on their credit report may qualify for an FHA loan after two years. Some mortgage lenders may approve a loan sooner, but the interest rates will be higher and the required down payment may be as much as 35 percent of the purchase price of the home.

Cleaning Up Your Credit

Even if you have bad credit, it’s important to check your credit report from each of the three major credit reporting agencies – TransUnion, Equifax and Experian – before applying for a loan. If anything is inaccurate, file a dispute with the reporting agency and request a correction. You can request a free copy of your credit report every 12 months.

In addition to correcting any inaccuracies on your credit report, it’s important that you know what can help or hurt your chances of obtaining a loan. You can start improving your credit by avoiding the temptation to apply for new credit right before submitting a mortgage application. Multiple inquiries will cause your FICO score to drop, and lenders will rely on this information when deciding whether or not to issue your loan and how to calculate your interest rates. With past credit problems, most lenders will want to see that you have rebuilt your credit history with 1-3 major credit cards and timely payments over a two-year period.

Money Matters

When it comes to obtaining a home loan, a healthy bottom line will help the lender to see you as being creditworthy. It’s important that you have sufficient income, along with the ability to prove steady employment for at least one year (longer is better) preceding your loan application. Most lenders will request a copy of your tax returns for the two most recent years, along with current pay stubs. If you have money for a down payment, this will also work in your favor.

Creative Financing

In some cases, a conventional mortgage loan may not be available no matter how hard you try. Owner financing is one way that individuals, who may not otherwise qualify for a traditional mortgage loan, can purchase a home. This type of financing is offered by the owner and may include interest rates comparable to other loans, flexible down payment options and no credit check. Your REALTOR® can assist you in finding homes that offer alternative financing options.

RE/MAX Connection Realtors disclaimer:
RE/MAX Connection Realtors are not licensed financial advisors, and are not providing any financial advice, you should consult with a licensed financial advisor prior to making any financial decisions. RE/MAX Connection Realtors are only providing this economic statement from Naroff Economic Advisors, Inc. for informational purposes.
Our company accepts no liability for the content of this email/blog, or for the consequences of any actions taken on the basis of the information provided. Any views or opinions presented in this email/blog are solely those of the author and do not necessarily represent those of the company. Finally, the recipient should check this email and any attachments for the presence of viruses. The company accepts no liability for any damage caused by any virus transmitted by this email.
RE/MAX Connection Realtors, 1000 East Lincoln Drive, Suite 2, Marlton, NJ 08053 www.goconnectionnj.com

Home sale offers new protection

Please click the link below to read this article:

http://www.courierpostonline.com/article/20111103/NEWS01/311030019/Home-sale-offers-new-protection

RE/MAX Connection Realtors disclaimer:
RE/MAX Connection Realtors are not licensed financial advisors, and are not providing any financial advice, you should consult with a licensed financial advisor prior to making any financial decisions. RE/MAX Connection Realtors are only providing this economic statement from Naroff Economic Advisors, Inc. for informational purposes.
Our company accepts no liability for the content of this email/blog, or for the consequences of any actions taken on the basis of the information provided. Any views or opinions presented in this email/blog are solely those of the author and do not necessarily represent those of the company. Finally, the recipient should check this email and any attachments for the presence of viruses. The company accepts no liability for any damage caused by any virus transmitted by this email.
RE/MAX Connection Realtors, 1000 East Lincoln Drive, Suite 2, Marlton, NJ 08053 www.goconnectionnj.com

How Much House You Can Afford

How Much House You Can Afford

There are a number of factors that can contribute to the affordability of a house and, as a potential homebuyer, it’s important that you know what type of mortgage payments are within your budget.

Debt-To-Income Ratio

As a homebuyer, your first consideration will be the amount of your monthly mortgage payments. If you owe a lot of debt, lenders may consider you to be a high credit risk, which makes debt-to-income ratio a leading factor in determining how much of a house you can afford.

Most lenders will discount any loans that you will have paid off within one year when determining how much of a home you can afford. As a general rule, your mortgage payment should not exceed 25-30 percent of your monthly take-home pay.

Loan Term

Although you will end up paying more interest in the long run, you will find that you can afford a more expensive house if you request a loan term of 25-30 years, compared to a shorter term of 15 years.

Interest Rates

When you look at an interest rate, all you see is a number. Hopefully, it’s a single digit that’s comparable with current market rates. Most homebuyers already know that their interest rate affects their monthly payment which, in turn, is determined by the borrower’s income. Lower interest rates mean that you can afford a larger principal loan amount, which means a more expensive house.

Credit History

Because your past credit history will play a large role in determining your interest rates, it will also impact the affordability of a house. For instance, a buyer who pays six percent interest will save a considerable amount of money over a buyer who pays eight percent interest on their home loan. It may not seem like much now but, when averaged over time, the savings could be tremendous.

Down Payment Amount

Believe it or not, the amount of your down payment will not only show the lender how serious you are about buying a home, but it will also affect your ability to afford a particular house. For instance, if you were to qualify for a home loan of $200,000, but your dream home was currently listed for $250,000, a down payment in the amount of $50,000 would get you into the home.

The above scenario is just an example, but it does show how a down payment can affect the price of the home that you are able to afford. Some lenders may only require a five percent down payment, but you are free to pay as much above that as you wish. A larger down payment can also reduce the principal loan amount, which thereby reduces the monthly mortgage payments.

RE/MAX Connection Realtors disclaimer:
RE/MAX Connection Realtors are not licensed financial advisors, and are not providing any financial advice, you should consult with a licensed financial advisor prior to making any financial decisions. RE/MAX Connection Realtors are only providing this economic statement from Naroff Economic Advisors, Inc. for informational purposes.
Our company accepts no liability for the content of this email/blog, or for the consequences of any actions taken on the basis of the information provided. Any views or opinions presented in this email/blog are solely those of the author and do not necessarily represent those of the company. Finally, the recipient should check this email and any attachments for the presence of viruses. The company accepts no liability for any damage caused by any virus transmitted by this email.
RE/MAX Connection Realtors, 1000 East Lincoln Drive, Suite 2, Marlton, NJ 08053 www.goconnectionnj.com

June Housing Starts and Permits

NAROFF ECONOMIC ADVISORS, Inc.
Joel L. Naroff
President and Chief Economist

INDICATOR: June Housing Starts and Permits
KEY DATA: Starts: +14.6%; 1-Family: +9.4%; 5+ Units: +31.8%; Permits: +2.5%; 5+ units: 8.2%

IN A NUTSHELL: “Given how low home construction was, it wasn’t surprising to see and increase but the surge in starts is an eye-opener.”

WHAT IT MEANS: The housing sector has been the major drag on the recovery. Normally, a jump in construction comes with large increases in employment. That has not happened yet. However, there may be some indications the bottom in home construction is behind us. Housing starts surged well beyond expectations in June. When the May numbers came out, I wrote the following: “Looking forward, home building should pick up soon and possibly quite solidly.” I said that because permit requests were outstripping starts and builders were not spending money on permits for fun. However, I didn’t expect this kind of increase. The gains were distributed across the nation with double-digit increases posted in all areas except the West. The movement into rental housing has triggered a major revitalization of the multifamily sector. The market does work, if you let it. Permit requests continued to move upward so construction should continue to rise in the months to come especially since the number of homes permitted but not started was up. The supply of home being built is also rising. That matches well the rise in builders’ confidence reported by the National Association of Home Builders.

MARKETS AND FED POLICY IMPLICATIONS: We have been trying to call the bottom in the home construction sector for quite some time and I think we finally have one. Of course, given how low things have been, the level of activity is still well below what would signal a healthy market. In addition, starts and permits are more in line so don’t expect double-digit construction increases going forward. However, the leading light in this sector of the economy, apartment construction, should do well and with even a modest rise in the single-family segment, housing should start adding to growth during the second half of the year. More importantly, rising construction should bolster job gains and I expect the July employment numbers to be a lot better than the tepid June gains. Investors should like this report, if they are focusing on the fundamental U.S. economy rather than the theater of the absurd being performed in Washington or the continuing uncertainty about European sovereign debt. But this is earnings season, so what businesses report will likely trump some of the economic data. As for the Fed, the members would like to see more months of increases in housing before they start thinking the soft-spot has passed. I think the second half will still be strong, though maybe not quite as robust as I expected a few months ago. We still need lower gasoline prices and I am not sure that is coming.
RE/MAX Connection Realtors disclaimer:
RE/MAX Connection Realtors are not licensed financial advisors, and are not providing any financial advice, you should consult with a licensed financial advisor prior to making any financial decisions. RE/MAX Connection Realtors are only providing this economic statement from Naroff Economic Advisors, Inc. for informational purposes.
Our company accepts no liability for the content of this email/blog, or for the consequences of any actions taken on the basis of the information provided. Any views or opinions presented in this email/blog are solely those of the author and do not necessarily represent those of the company. Finally, the recipient should check this email and any attachments for the presence of viruses. The company accepts no liability for any damage caused by any virus transmitted by this email.
RE/MAX Connection Realtors, 1000 East Lincoln Drive, Suite 2, Marlton, NJ 08053 www.goconnectionnj.com

Cut Your Cooling Costs With These Money-Saving Tips

Cut Your Cooling Costs With These Money-Saving Tips

When it comes to keeping your home comfortable in the summer, there are a number of ways to accomplish your goal without breaking a sweat over your cooling costs. Believe it or not, the price of heating and/or cooling a home often accounts for more than 50 percent of a homeowner’s energy bill. What does this mean for you? As a budget conscious individual, it’s time to cut your cooling costs with these money-saving tips.

Sunblock

When the sun is up, consider pulling your shades down. Close your curtains, blinds or whatever window treatments you use to keep the sun’s rays from heating up your home. This will help to keep the interior of your home cool, which can help to cut your energy costs by not making your air conditioner work harder simply because the sun is causing excess heat. Solar screens for your windows and a radiant paint barrier for your attic are effective ways to block much of the sun’s UV rays.

Coolness Counts

If you use an air conditioner to cool your home, make sure that you adjust the temperature when you leave the house. Otherwise, you are just wasting energy on a home when no one is there. Additionally, you can also turn the unit down at night when the temperatures typically tend to cool off. This is true whether you are using a window unit for an individual room or a central system that’s used to cool the entire home.

Maintaining Your Cooling Unit

It’s important to clean your filters and/or replace them as recommended by the manufacturer. In addition to possibly resulting in dust and other allergens being circulated into the air, neglecting your filters could prevent the cool air from properly getting into your home. Have your air ductwork inspected on a regular basis for leaks and clogs to insure your system operates at peak performance.

Keep The Air Moving

Not every summer day is a hot one, which means you can often take advantage of the temperatures by using a standard fan instead of your air conditioner. The latter uses a great deal more energy than a fan, so consider your needs on a daily basis when choosing how to cool your home. You can install a ceiling fan for added air circulation, or you can use a standard rotating fan.

Cut Back On Cooking

Your kitchen oven can heat up your home in a hurry, which can make your air conditioner work harder to keep your house cool. This, in turn, results in higher cooling costs. Instead of using the oven, consider popping something in the microwave or on the outdoor grill for a change. While this may not be possible every day, it’s certainly something to consider on those sweltering summer afternoons.

RE/MAX Connection Realtors disclaimer:
RE/MAX Connection Realtors are not licensed financial advisors, and are not providing any financial advice, you should consult with a licensed financial advisor prior to making any financial decisions. RE/MAX Connection Realtors are only providing this economic statement from Naroff Economic Advisors, Inc. for informational purposes.
Our company accepts no liability for the content of this email/blog, or for the consequences of any actions taken on the basis of the information provided. Any views or opinions presented in this email/blog are solely those of the author and do not necessarily represent those of the company. Finally, the recipient should check this email and any attachments for the presence of viruses. The company accepts no liability for any damage caused by any virus transmitted by this email.
RE/MAX Connection Realtors, 1000 East Lincoln Drive, Suite 2, Marlton, NJ 08053 www.goconnectionnj.com

A Homeowner’s Toolkit: All The Tools You Need To Care For Your Home

A Homeowner’s Toolkit: All The Tools You Need To Care For Your Home

Whether you have just bought your first home or have been a homeowner for some time, chances are that at some point you will be faced with home repairs. While you can always call the local repairman to fix minor plumbing or structural problems, doing the repairs yourself can save you time and money, and with a few tools you’ll have everything you need to make most home repairs. So what do you need to create a Homeowner’s Toolkit, and to give you the know-how to make the simple repairs yourself? Here’s a list that includes everything you’ll need!

Home Repair Book—If you know nothing about home repairs, this may be the most important tool you will purchase for your home. There are a number of great books to choose from, including those in the “For Dummies” series that will not only give you step-by-step guidance, but also tell you the tools you’ll need for each job.

Hammer—This is a basic tool that you will no doubt use dozens of time for everything from hanging pictures to more major repairs.

Screwdriver—This is another basic tool that you will use over and over. Be sure you get a set with quality grips, and that includes a number of different heads. The ones with magnetic heads can make getting into tight spaces easier and less frustrating.

Wire Cutter—This handy tool is a must for any basic electrical work you may want to do.

Tape Measure—Be sure you choose one that has sufficient length to cover most spaces in your home, a good quality one with a lock.

Reversible Drill—A ⅜-inch model is one of the handiest tools any homeowner will ever have. Be sure you pick up a cordless model so you can also easily use it outdoors as well.

Pry Bar—Purchase one that is hexagonal steel rather than spring steel to avoid bounce back when using it with a hammer.

Vise Grips—This handy tool is especially useful for any plumbing you may do.

Needle-nose Pliers—This tool is mostly used for electrical work, but is also useful for getting into tight spaces, and even for crafts.

Utility Knife—This is another one of those multi-purpose tools that is a homeowner essential. Be sure to pick one up with replaceable blades.

Handsaw—While a circular saw may seem like the better investment, there are a number of cases where a handsaw is the better choice. They are also much less expensive.

Getting started with home repairs can seem like a daunting task, especially if you have no experience, but with the right tools and a little knowledge you can save a fortune while keeping your home in good repair.

RE/MAX Connection Realtors disclaimer:
RE/MAX Connection Realtors are not licensed financial advisors, and are not providing any financial advice, you should consult with a licensed financial advisor prior to making any financial decisions. RE/MAX Connection Realtors are only providing this economic statement from Naroff Economic Advisors, Inc. for informational purposes.
Our company accepts no liability for the content of this email/blog, or for the consequences of any actions taken on the basis of the information provided. Any views or opinions presented in this email/blog are solely those of the author and do not necessarily represent those of the company. Finally, the recipient should check this email and any attachments for the presence of viruses. The company accepts no liability for any damage caused by any virus transmitted by this email.
RE/MAX Connection Realtors, 1000 East Lincoln Drive, Suite 2, Marlton, NJ 08053 www.goconnectionnj.com

The Benefits Of Home Ownership

The Benefits Of Home Ownership

The decision to purchase a home is exciting and a major investment for your future. Because there is only so much of it to go around, real estate is the top choice for many investors and the desire for most families. This article is designed to highlight some of the many benefits of home ownership and how buying a home can often turn the American Dream into a reality.

One of the most profitable markets in real estate is rentals, which means that many families are paying to live in a home that isn’t their own. In some cases, renting a home is necessary. For all others, the money that would be spent on rent could instead be used to pay a mortgage. In fact, monthly rent payments often exceed that of a typical mortgage payment. One of the greatest benefits of home ownership is putting money into something that you can call your own and knowing that the monthly payments are going toward your home’s equity.

Speaking of equity, many properties experience a growth in value as more development moves into the area or the economy strengthens through an increase in job opportunities. If this happens, home values soar and owners can bask in the glory of their newfound profit. When you purchase a new car, it depreciates the moment that you drive off of the lot. When you buy a home, however, it has the potential to appreciate year after year. There are few things in life that can offer you a return above and beyond your original purchase price, but a home can.

When you own a home, you will enjoy the freedom of decorating and making any changes that you choose without needing the permission of a landlord or property owner. In addition, you may even be able to use your home’s equity to finance some needed improvements and/or repairs. In some cases, these changes may even increase the value of your home. An upgraded kitchen or bathroom, hardwood flooring or an additional room are examples of changes that could result in added value.

Another advantage of home ownership is the tax benefits that are available. The interest paid on a home mortgage as well as most property taxes paid are tax deductible. For additional information on deducting mortgage interest and property tax, consult the IRS or a tax professional.

In addition to providing yourself and your family with a feeling of stability and permanence, home ownership can also help strengthen your credit profile through timely mortgage payments and a steady financial history.

RE/MAX Connection Realtors disclaimer:
RE/MAX Connection Realtors are not licensed financial advisors, and are not providing any financial advice, you should consult with a licensed financial advisor prior to making any financial decisions. RE/MAX Connection Realtors are only providing this economic statement from Naroff Economic Advisors, Inc. for informational purposes.
Our company accepts no liability for the content of this email/blog, or for the consequences of any actions taken on the basis of the information provided. Any views or opinions presented in this email/blog are solely those of the author and do not necessarily represent those of the company. Finally, the recipient should check this email and any attachments for the presence of viruses. The company accepts no liability for any damage caused by any virus transmitted by this email.
RE/MAX Connection Realtors, 1000 East Lincoln Drive, Suite 2, Marlton, NJ 08053 www.goconnectionnj.com