Mortgage lenders will take a close look at your Debt to income ratio to see if you qualify for a mortgage. Here is want you need to know about debt to income ratio's. First you have your Front End Ratio (FER) this is your monthly mortgage, real estate taxes, associate fees, PMI and homeowners insurance. To calculate your FER add up all your housing expenses listed above and divide them by your Gross monthly income then multiply by 100 this is your FER. (ex. your housing expenses are $1,000 and your gross income is $3,000 your FER is 33% Lenders say the ideal FER should be no more than 28%
There is a back end ratio (BER) this is the amount of money you need to cover all your monthly bills (car payment, credit cards, loans etc.) To calculate your BER add up all your monthly expenses with your housing expenses and divide by your gross monthly income. (ex. said all your bills add up to $350 a monthly and Mortgage, taxes, Ins. is $1,000 That adds up to $1,350 and your gross monthly income is $3,000 your BER would be 45%. Lenders say the ideal BER should be 33% or lower. FHA limits are FER 31% and BER 43%
More foreclosures than home sales!
Last year in Orange County, foreclosure filings out numbered single family home sales, 1,693 to 1,692
.
Thousands of families have already lost their homes, and thousands more face the prospect of eviction in the coming year. As more bank foreclosure come on the market it drives down the already depressed real estate prices. As per the OCAR homes that went it contract during the first three months of 2005 had been on the market an average of 95 days. This year, it took an average of 146 days. With the number bank foreclosures not on the market yet we estimate it with take several years for the market to pick up.
Foreclosure help: Emergency Homeowners Loan Program: Interest free loans to pay a portion of your monthly mortgage for up to two years or $50,000 whichever comes first. Call 855-346-3345 or visit www. FindEHLP.org Orange County Rural Development Advisory Corp: 524-4663 or www.ocrdac.org Legal Services of the Hudson Valley: 877-574-8529 or www.lshv.org Empire Justice Center:www.empirejustice.org
Real Estate Agent will do anything to get your listing.
Some agents will offer gifts, prizes, vacations, etc. Did you know some large real estate companies give points or prizes to agents that bring in the most listings in a month? A good agent will never list you house higher than the current market value but their are some agents that will tell you that the market is starting to pick up and to list you property at a higher prize. After a month or two on the market the agent will get you to drop your price to what it should have being to start with.
When is the best time to put my house on the market?
Most potential home buyers get spring fever as early as March so your listing should be in place by February. What I mean by in place is that you have signed a listing agreement with your realtor, property is in your areas MLS ( Multiple Listing Service) system and the marketing campaign is under way for your property. Some agents will take your listing, promise you the world, give you a low commission rate and than place your property in the MLS system and hope it sells. An experienced Realtor will market your property by MLS, magazines, newspaper, and web site services.
Owner Financing may help you sell your house!
If you are having trouble selling you house you may want to try owner financing. Benefits for the seller are: Increased number of potential buyers that would not qualify for a loan, higher interest rate than you would not receive from other investments.
Owner financing can be a good investment because you are able to ask for a higher purchase price and a higher interest rate on your money.
Most seller's who offer owner financing will limit the terms to 3 to 5 years with a balloon payment at the end, the buyer can then refinance with a traditional lender. The higher interest rate is one reason the buyers would look for refinancing.
Mortgage Lenders want it all
If you are shopping for a mortgage beware, lenders are looking for tax return information and not just the first two pages but he whole return. Why the sudden interest in the buyers tax returns? Lenders are looking for any signs of loan fraud with income irregularities. Income property: If you have a rental property and charge $1,200 a month and have $1,000 month expenses that you show on your tax returns then your positive rental income is $200.00 Buyer's need to build up their taxable income for at leased two years before they can qualify for a loan.
Are your offers being turned down because of your buyers agent?
Some buyers agents are not happy earning the commissions offered through the MLS system and are asking for addition commission fees to be paid by seller. Sellers will reject these offers in today's market due to the already reduced prices of homes. Before you sign an agreement with a buyers agent read the fine print! If you have any questions about buyers agent your can email info@nysbroker.com for free information.
Did your realtor over price your home!
In today's market it is important to price your property right . When a realtor does a Comparative Market Analysis of your property they must compare apples to apples (ex. Bi level to Bi level, Colonial to Colonial)
to get your market value. Some realtors over price your property just to get your listing this is call buying your listing, and a month or two later they ask you to drop the price. Always hire a licensed NYS Realtor who is a member of your local MLS System.
How to pick your Realtor
There are 3 types of Real Estate Licenses:
Principal Broker- Licensed Real Estate Broker that owners the Company
Associate Broker- Real Estate agent that has pass the brokers course
Salesperson- Licensed real estate agent
There are 4 types of agents:
Buyers Agent
Sellers Agent
Brokers Agent
Dual Agent
Choosing a Realtor is important if you want results in selling your home. Here is what to look for:
NYS Licensed ?
Member of a MLS System that covers your area?
How many Years of experience in real estate?
Full time (not just a weekend real estate agent)?
Can be reached after hours?
Internet marketing plan?
Lawn Tips Fertilize your lawn in the fall keeps it healthy for next summer. As the winter approaches your lawn needs to stores food before going dormant, this help your lawn to a better recovery in the spring. Also add seed where needed to fill in bald spots. Now is the time to apply grub and insect control to your lawn don't wait till the spring it will be too late.
Kitchen & Baths. When preparing to sell your home pay special attention to the kitchen and baths. These rooms are the clinchers when it comes to home sales.
Fire Safety Tips Keep a multi-purpose fire extinguisher in the kitchen and also on each floor of your home. Have a fire escape plan that you can review with the family. Twice a year have a mock fire drills, this may save your live in case of a fire. Change batteries in smoke and CO detector every 6 months.
Painting Tips fresh coat of paint is a great idea, but sometimes the smell of paint can raise suspicion with potential buyers. Add 3 drops of real vanilla extract to each gallon of paint used. This will neutralize 90% of the paint smell. *Always check with your paint manufacturer before.
Home tips Things we don't think about that will make our life easyer should as clean and lubricate locks, hinges, and moving windows parts and door hardware once a year. to maintain ease of use. Keep furniture, and other items that children might climb, away from windows for safety.
Garage door openers To make sure your garage door opener is working properly you should test the auto-revers function and familiarize yourself with the door's release system in case of power failure or an emergency.
Keep people clear of opening while door is moving.
Do not allow children to play with door or operator.
Do not operate a door that jams or one that has a broken spring.
