How to buy a house

You are thinking about purchasing a home and are a little confused or concerned about the process.  Here I will walk you from deciding to purchase  to submitting an offer.

Step 1:   Decide to purchase
Making the decision to purchase what may be one of the largest investments in your life can be very daunting.  What do you do now?

Step 2:  Hire your agent 
If the cost of hiring a agent is a concern it shouldn't be.  In almost all cases the seller pays your agent.  You and your agent will have a detailed consultation to determine you wants and needs are for your new home.

Step 3:  Get pre-approved
Contact your lender of choice to determine if you are mortgage ready.  Your lender will go over finances to determine if they are able to extend financing to you.  If you are not ready they will assist in getting you ready.

Step 4:  Let's go shopping
This is the fun part.  We get to go out and see houses.  We get to spend time poking and prying in homes to find the right one for you.

Step 5:  Make an offer
You found the "perfect" home,now its time to sit down with your realtor to talk about the particulars such as price, terms, and contingencies.

Step 6:  Get started with #2 and contact me now with me today to ask questions and get started!!!  

Don't delay there are many incentives out there for buyers

Rent-to-own?

Lately I have received several inquiries about the rent-to-own option.  With many want to be homeowners thinking they are unable able to obtain a mortgage they look to other avenues to get there......

Well here is your answer (short and sweet)

Lease option (aka rent-to-own):

• Gives the renter the option to purchase the home after a specified time (usually 1 to 3 years).
• The renter is not obligated to purchase the home.  In Maryland, if a home owner decides to sell a tenant occupied property, that tenant has what is called first right of refusal.  First right of refusal gives the tenant the first option to purchase the home provided they can produce financing and close the loan.
• A pre-determined portion of the rent is collect with the rent to be used toward the purchase down payment.
• Usually targeted toward people who want to own a home but lack the cash down payment, credit, and or income to qualify for a mortgage

 Lease purchase:

• Binding contract to purchase the home with a projected closing/settlement date allowing the purchaser time to save for down payment, closing cost and obtain financing.
• A purchase price is negotiated prior to signing the lease.  This can change to fair market value prior to settlement usually in the sellers favor.
• Buyer is obligated to purchase the property
• Renter may be fully responsible for the maintenance, upkeep and repairs of the house.
• Most lease purchase agreements fall through
• A pre-determined portion of the rent is collect with the rent to be used toward the  purchase down payment.
• Seller may be able to keep your down payment if you default
• Appraisals are highly recommended 

Advantages

The renter/purchaser will be able to lock in  a purchase price in advance of settlement.  You are able save for the down payment by writing  into the contract the amount of the monthly rent being applied to the down payment/purchase price. You get to try out a house and the neighborhood to assess if it is a good fit for you and your family. It also gives the purchaser time to clean up their credit.

Disadvantage

You may lose your down payment/option money  invested. In some cases the seller may have the right to keep your down payment for something as simple as paying your rent late by a day during your lease. Unlike rental security deposits, you do not get option money back at the end of the lease if you are unable or decide not to purchase the home. You could also lose the invested money if the owner goes into default or the home is foreclosed upon.  If the home fails to appraise for the agreed upon purchase price, you could also lose your invested money.

Conclusion

If you are interested in the rent-to-own or lease purchase options enter very cautiously.  I highly recommend that you get your local real estate agent and or your attorney involved. Be sure to do your homework. Read and understand all paperwork BEFORE you sign. Make sure you make all payments on time.  Have proof of where and how much your deposits are and know the balance.

 
You may be surprise to learn that traditional home ownership is obtainable There are numerous programs to get you on the path to home ownership; along with an arsenal of grants for down payment and closing cost, employee assistance programs, real estate professionals, lenders, and home ownership counselors; home ownership is closer than you think. 

Bottom line:  rent-to-own may or may not be for you.  Talk with your local Realtor to discuss this option.

Keller Williams Realty Now #1 Real Estate Company by agent count!

Press Release - Keller Williams Realty Now #1 Real Estate Company by agent count!

I am so happy to work for this company!  

Yeah me, yeah you for choosing me!

Free money to move

Free money is always a plus. Minimize the money out of your pocket! To live ANYWHERE within the Baltimore City limits could be worth $15,000 or more. 

The CityLift Program will again begin to distribute funds in April of this year. Put yourself in the position to get your $15,000. With generous income requirements and very simple program details, home ownership is closer than you think.

If you or someone you know is interested in receiving $15,000 or more for down payment and closing cost, contact me today to find out how I can assist you, your friend(s) or family. 

This is not just for first time buyers only!

FHA loans cost to increase

Here we are again.  As we begin to come out of the housing market decline, the cost of FHA loans is due to increase.  Its official, FHA has publicly announced and confirmed that FHA buyers will pay mortgage insurance premiums (MIP) for the life of their loan on or after April 1, 2013. Unlike previous FHA backed loans, the purchaser was allowed to drop MIP off their loans once their homes reached 22% equity and a minimum of 5 years. 

The increase is set to .10 basis points.  If you get a FHA loan for $300,000 your MIP contribution would be $30 added onto your mortgage payment for the life of the loan. There is also talk of increasing the down payment requirement from 3.5% to 5% which may make home ownership harder for some. 

Due to the upcoming changes on  FHA loans, buyers may want to consider looking into alternative financing such as Conventional loan programs that do not have mortgage insurance premiums.

Example (provided by a mortgage lender)

Cost of home $400,000

Conventional option:   5% down, loan amount $380,000,  interest rate 3.75%,  30 year fixed. Buyers total (principle and interest, taxes and insurance) payment = $2,176 a month.

FHA option:  3.5% down, loan amount $386, 000, interest rate 3.5%,  30 year fixed. Buyers total (principle and interest, taxes and insurance ) payment = $2,552 a month, resulting in an monthly increase of $376 a month  which is  $35,000 over the next 10 years!

Bottom line…….the overall cost of a FHA loan is going up!

If you have been thinking about purchasing a home, I highly encourage you get moving now before you're loan is subject to the new rules or look for other financing alternative.

Need additional info?  JUST ASK

Baltimore Ravens are the Champions

Yes, yes ,yes......they did it.

Baltimore Ravens Superbowl XLVII champions.  


I was beyond ecstatic when the last four seconds were on the clock.  It as at that moment that I knew that the Lombardi trophy was on it way to Baltimore. 

At some point during the post game celebration with my family and friends, I found myself literally running around the perimeter of my house with my cow bell ringing, screaming and smiling, coatless in short sleeves as the adrenaline rushed through my body.  Really, I was not cold just simply heated up with the rush I had been waiting for, for the last twelve years.

Be sure to join in the fun before the Ravens are off to Disney World at the Superbowl Celebration parade tomorrow, Tuesday February 5, 2013. The parade will kick off at 10:45 a.m. at City Hall and convening at the M&T Bank stadium for the rally an 12:30 p.m.  

You may want to consider public transportation to avoid the traffic jams.  If not keep in mind that parking at the stadium will be free.

Hope to see you there.    

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Click on map for more info 

Parade route image courtesy of Fox 45 Baltimore

Purple and Red Superbowl XLVII

It only about 48 hours away and I can't wait. Anticipation, excitement, anxiety, and happiness are running through my purple soul.

With so much media coverage focused on everything surrounding the SuperBowl, such a Ray Lewis's "last ride" Jim and John Harbaugh, Beyoncee, the commercials, the food, the drinks, then finally the  Ravens and the 49ers? It all has my head spinning. With all that it could make someone wonder who or what the SuperBowl is really about?  

For me its all about the game and Ravens bringing home the Lombardi trophy (shhhhh........and of course the tailgating party, lol)  

Go Ravens!