A Must Read For First-Time Home Buyers

5 Tips for First-Time Home Buyers

Here’s a great article I came across by Becky Flanigan

 

Buying a first home can be a scary, confusing and stressful process. Many would-be buyers are understandably nervous at the prospect of making the largest purchase of their lives. Rather than diving in and hoping for the best, you should prepare carefully before you begin the house search.

Following some useful tips will help you turn an overwhelming and intimidating experience into an exciting search that yields the right home!

1.) Establishing a Realistic Price Range

A common mistake among first-time home buyers is purchasing more house than they can afford. You should not rely on banks to determine what you can comfortably spend on a new home. Banks are adept at determining the amount of monthly debt in the form of mortgage, insurance, credit card, student loan and auto loan payments. They have no way of knowing, however, what you spend each month on groceries, entertainment and utilities.

You should make a list of all monthly expenses, excluding rent or your current mortgage payment. Whatever is left after monthly expenses is the amount available for a mortgage payment and housing expenses such as taxes, insurance and home maintenance. Carefully consideration of your budget saves time by weeding out homes that you cannot afford and guards against overspending.

2.) Seeking Pre-approval

Getting pre-approved for a mortgage prevents a deal on a dream home from falling apart due to failure to obtain financing. You should compare loans from several lenders to see which one best suits your needs. A pre-approval letter will give you some power to negotiate on a home’s price because the seller will view a pre-approved offer more favorably than an offer that comes without lender pre-approval.

Keep in mind that pre-approval is different from pre-qualification. During pre-qualification, the lender estimates what you can afford. Pre-approval is a more involved process in which the lender looks at your credit report and performs an extensive financial background check. At this point, you will get a good idea of the mortgage interest rate as well.

3.) Setting Priorities

You should compile a list of what you need and want in a house. Needs might include the number of bedrooms, square footage, high-quality schools and commute time. These needs are aspects of the house that either cannot be changed or cannot be changed without substantial cost to you.

Wants, on the other hand, are something you would like and that can be changed. Wants may include a pool or hot tub, landscaping, finished basement or hardwood floors. Making a list of wants and needs helps you focus on what is really important in a house, narrowing the list of prospective homes. Ideally, the new house will include all of the needs and a few wants.

4.) Choosing the Right Neighborhood

Crime statistics, insurance rates, property taxes and school quality are important considerations for you. Because the neighborhood makes up a large part of a home’s value, take your time to find exactly what suits your needs. You should also consider job commute, traffic during rush hour and proximity to amenities such as shopping, churches and libraries.

Driving through the neighborhood at various times during the day and night will provide a more complete picture of the location. Don’t forget to talk to potential neighbors, who can be a good source of information regarding the neighborhood and residents in the community. Take note that bad neighbors can bring down the value of a house.

5.) Finding the Right Home Inspector

You will also need a professional home inspection. Even new houses may present costly problems evident only to a home inspector.

You should talk to several inspectors before hiring one. You should ask about the inspector’s qualifications, scope of the inspection, how long it will take and the nature of the report you will receive at the end of the process. Main areas covered by the inspection should include quality of construction, integrity of the foundation and condition of plumbing, electrical, heating and cooling systems. If the inspection uncovers serious issues, such as cracks in the foundation, you may decide to back out of the contract or ask the seller to repair the problem.

If you (or anyone you know) are a TEACHER, MILITARY, FIREFIGHTER, POLICE, CORRECTIONS, NURSE, DOCTOR, DENTIST MEDICAL ASSISTANT, CNA, Etc, you may qualify for the Homes for Heroes program!

You can reach me, Travis Newton, Homes for Heroes Mortgage Lender Affiliate in Salem Oregon at 503.931.4490 or on the Oregon Homes For Heroes Facebook page.

 

 

And Now You Want To Buy An Investment Property?

BUYING AN INVESTMENT PROPERTY

Buying an investment property is a good way to prepare for your financial future. It provides a flow of cash in addition to other income through rental opportunities, and can even present certain tax advantages. That being said, it is a decision that should not be made lightly. Investment property also brings additional responsibility and you should be prepared to handle maintenance and repairs. Some investment property may also need renovating, which can dip into your budget and there may be times when the property is vacant between rental agreements.

What Is An Investment Property?

Any residential property can be considered an investment property if you have no intention of making it a primary residence.

You may want to purchase a home near your primary residence and rent it on a long term basis to a couple or a family. If you live in an area that experiences a lot of tourism, such as a lake, beach, or a near a ski resort, then short-term vacation rental properties may be the better choice for you. These are residences that are rented for a month or during an entire season and can be quite profitable.

Reasons To Consider Investing In Real Estate

Return on investment (ROI)

Real estate investing is one of the most stable forms of investing and generally is guaranteed to produce a return on your investment. For example, if you purchase a residence and use it as a rental property for several years and then sell it for more than you purchased it at, you have already made a positive ROI.

Cash flow

The rental market is experiencing exponential growth and this means that you have greater opportunities for cash flow. Investment property mortgage rates are incredibly low which means that you can use the rental payments to pay for the rental property’s maintenance and still make a profit to put into the bank.

Easier on your taxes

Buying an investment property can actually help you out with your taxes each year because you are using it as a business. This means that any expenses associated with that property are tax deductible: repairs, maintenance, mortgage interest rate, and depreciation.

Things You Should Know When Buying an Investment Property

In order to get the most out of your investment property, here are some factors that you should examine before you decide that investing in real estate is the right choice for you.

Mortgage payments

Examine your financial situation to make sure that you will be able to cover mortgage payments on the property during those periods of time when it is vacant. Choosing the right type of home loan options will also help.

Condition Of The Home

Evaluate the condition of the property and options available such as renovating it yourself, hiring a professional to do the job, or focusing on just the interior or exterior of the property.

Location, Location, Location

Consider who your target renter will be and look for properties that match what they would look for when choosing a place to live. If you are targeting college students, then looking for a property within close vicinity to a university is paramount. In addition, you may also want to consider how close the property is to public transportation, grocery or convenience stores, local nightlife and other amenities that college students use often. Finding a property with a convenient location could mean the difference between renting for a premium price or bottom dollar, as well as how often you can keep it occupied.

How can we help you?

If you are a TEACHER, MILITARY, FIREFIGHTER, POLICE, CORRECTIONS, NURSE, DOCTOR, DENTIST MEDICAL ASSISTANT, CNA, Etc, you may qualify for the Homes for Heroes program!

You can reach me, Travis Newton, Homes for Heroes Mortgage Lender Affiliate in Salem Oregon at 503.931.4490 or on the Oregon Homes For Heroes Facebook page.

 

Reverse Mortgages Loan Info

REVERSE MORTGAGE LOAN

What is a Reverse Mortgage Loan?

A reverse mortgage loan is a loan that lets you take out a large percentage of the equity in your home without having to pay it back until you move out of your home or sell it. It is only available to older homeowners and can help you supplement your retirement.

Reverse Mortgage Guidelines

Reverse mortgage guidelines are quite simple and direct. First, you must be at least 62 years old. Second, your home must contain a significant amount of equity. Third, if you have a mortgage on your home, it should be of an amount that you could use the reverse mortgage to pay it off. Fourth, the home must be your primary residence.

* You do not have to provide credit information because you will not be making any payments on the reverse mortgage loan.

Reverse Mortgage Pros and Cons

It is important to review reverse mortgage pros and cons before you decide to take out a reverse mortgage on your home.

Reverse Mortgage Pros

• You can live in your home
• Your name stays on the home’s title
• Provides a supplement to your retirement
• Cannot be taxed as income
• The lender cannot take your home
• You cannot outlive the loan
• Can repay the loan at any time without penalty fees

Reverse Mortgage Cons

• Higher interest than other loans
• Interest accrues during the lifetime of the loan
• Costs to create a reverse loan are high
• Homeowner must pay all taxes and insurance for the loan

How Does a Reverse Mortgage Work ?

If you have a large amount of equity in your home, you can apply for a reverse mortgage loan and there are three types available.

• Government sponsored reverse mortgages – Fannie Mae offers its own version of a reverse mortgage called a Home Keeper®. This loan helps senior home owners stay in their home and provides them with additional financial support. It is designed for home owners that fall into the low to medium income level.
• Federally insured reverse mortgages – Another reverse mortgage option that Fannie Mae invests in is the U.S. Department of Housing and Urban Development (HUD) reverse mortgage, which is called a Home Equity Conversion Mortgage. This loan is insured by the FHA (Federal Housing Administration) and guarantees that you will never owe more than the loan amount. If your property drops in value, only the value of the property needs to be paid on the mortgage if it is lower than the amount of the reverse mortgage.
• Proprietary reverse mortgages – These are reverse mortgages which are issued by private lenders and their features and options can vary.

Once you are approved, you can choose to be paid the amount in one payment or span the payments into monthly payments. Use the money on whatever you want – a dream vacation, supplement to government benefits, paying off debt, paying off your home’s mortgage, medical care, etc.

The loan does not become due until you move out of the home, sell the home, or until you have passed away. A lender cannot force you to sell your home and the title remains in your name.

REVERSE MORTGAGE FAQ

What are the disadvantages of reverse mortgages?

There are several reverse mortgage disadvantages that you should evaluate before taking out one. You will be paying a higher interest rate than on other loans, have less equity in your home, and you may run out of the money sooner than you think.

Is a reverse mortgage always the best option?

No. Reverse mortgages come due if you move out of your home or sell it. If you are planning to eventually live in a retirement community, a reverse mortgage may not be a good idea.

Who are reverse mortgages designed for?

Older home owners with sufficient home equity.

What are the advantages of reverse mortgages?

A reverse mortgage loan lets you remain in your home, provides financial support, and allows you to choose how much you want to use (up to a specified percentage of the equity).

What are the rules for a reverse mortgage loan?

Reverse mortgage rules require that you be at least 62 years old, the home must be your primary residence, and any existing mortgages can be paid off with the new loan.

What is the difference between reverse mortgages and other mortgages?

You are under no obligation to make any payments on the reverse mortgage as long as you live in the home. Other mortgages require monthly payments.

How old do you have to be to qualify?

You must be at least 62 years old.

What housing type qualifies for a reverse mortgage loan?

Any primary residence qualifies, including condominiums.

What housing types don’t qualify for a reverse mortgage loan?

Secondary homes, vacation homes, investment properties.

What is the difference between a reverse mortgage and a home equity loan?

A reverse mortgage loan requires no income proof and no monthly payment. A home equity loan requires proof of income and requires monthly payments.

What happens if you outlive the loan?

You cannot outlive a reverse mortgage as long as you remain in the home.

Does money from a reverse mortgage affect pension or social security benefits?

No.

Is the interest on a reverse mortgage loan deductible at tax time?

The interest cannot be counted as a tax deduction until the loan and interest is repaid.

What happens when the loan is repaid?

Any accrued interest or other costs that were added to the loan must be paid off.

Will I ever owe more than my home is worth?

No.

Can a lender take my home?

No.

Do I have to sell my property to repay the loan?

No. Your heirs can refinance the reverse mortgage loan as a conventional loan or you can repay the loan through other methods.

Can I get a reverse mortgage if I have an existing 2nd or 3rd mortgage?

Yes, as long as the mortgages can be paid off with the reverse mortgage.

How do I get paid from my reverse mortgage?

There are three choices lump sum, monthly cash payment, or a line of credit.

Does my credit history affect my ability to qualify for a reverse mortgage?

No.

Can a reverse mortgage be refinanced?

Yes.

Can I get a reverse mortgage on a vacation home or investment property?

No only primary residences are eligible.

Still Have Questions About Reverse Mortgages? We have an in-house Reverse Mortgage Specialist ready to help!

If you are a TEACHER, MILITARY, FIREFIGHTER, POLICE, CORRECTIONS, NURSE, DOCTOR, DENTIST MEDICAL ASSISTANT, CNA, Etc, you may qualify for the Homes for Heroes program!

You can reach me, Travis Newton, Homes for Heroes Mortgage Lender Affiliate in Salem Oregon at 503.931.4490 or on the Oregon Homes For Heroes Facebook page.

 

Rent vs Buy? There’s A Clear Winner!

Salem Oregon

With 2013 Home prices at or near 2005/2006 levels, and interest rates still at all time lows, NOW is the time to find that perfect home to fit your families needs.

 

If you are a TEACHER, MILITARY, FIREFIGHTER, POLICE, CORRECTIONS, NURSE, DOCTOR, DENTIST MEDICAL ASSISTANT, CNA, Etc, you may qualify for the Homes for Heroes program!

You can reach me, Travis Newton, Homes for Heroes Mortgage Lender Affiliate in Salem Oregon at 503.931.4490 or on the Oregon Homes For Heroes Facebook page.

 

Buying a Home Is 44% Cheaper Than Renting? Yes.

According to a recent article in Realtor Magazine: Buying a Home Is 44% Cheaper Than Renting

The recent rises in asking prices has been outpacing the increases in rents, but home buying still may make more financial sense, a new study shows. Owning a house was found to be 44 percent cheaper than renting, according to the latest study from Trulia that compared the costs of the two.

The study found that owning is less than half the cost of renting in 46 of the 100 largest metros. “Buying a home is cheaper than renting in all of the 100 largest metro areas,” according to Trulia. For the rest of the article please go here

If you or anyone you know are STILL Renting in Oregon, now is the time to find that perfect home to buy! We have many loan programs to help, including two loans that do not require ANY down payment!

You can reach Travis Newton, Mortgage Lender Affiliate in Salem Oregon at 503.931.4490 or on the Oregon Homes For Heroes Facebook page.

 

How to sign up for Homes for Heroes

Q: How much will I actually save?
A: Homes for Heroes® Affiliates have agreed to the following::

✓ Discounted lending fees and superior service on purchase or refinances with Travis Newton of ENG Lending.
✓ Discount on Private Home Inspections with Perfection Inspection, Inc
✓ Discount on other items when you use the Friends of Heroes program.

Q: How do I sign up?

A: Signing up is easy. Click here to be taken to the Hero Sign Up – Home page. Answer a few simple questions, and a Homes for Heroes Affiliate will contact you within 24 hours.

Q: Do I have to use all of your Affiliates, e.g. REALTOR®s and Lenders, to enjoy the savings?

A: No, you do not. However, most Homes for Heroes clients don’t want to miss out on the type of service provided by our Affiliates, so they choose to use our Affiliates every step of the way. No other affiliate can offer the service you can receive from our affiliates.

Q: Once I sign up, when will a Homes for Heroes real estate professional contact me?

A: Homes for Heroes Affiliates have agreed to make initial contact with you within 24 hours. Most will contact you within the hour.  If you don’t hear from someone within that time frame, please call us at 503.931.4490.

Q: Who qualifies as a workforce hero?

A: Workforce Heroes include, but are not limited to: teachers, firefighters, public safety officers, health care workers, military personnel, and others who provide quality services to the public every day. 

Q: How did this program get started?

A: Homes for Heroes was formed in 2002. Following the tragedy of September 11, 2001, and bolstered by a shared admiration for the “Heroes” who selflessly serve their communities, a group of Minnesota real estate-related business owners created the innovative network that we now know as Homes for Heroes.

Q: What if I am already working with a Realtor?

A: If you have signed any legal agreements with a Realtor, unfortunately, by law, you cannot work with a Homes for Heroes Realtor. However, if you have not committed to a mortgage lender, you can still take advantage of the rebates provided by our Homes for Heroes Mortgage Affiliates. To sign up and save, click here.

Q: What else can you tell me about Homes for Heroes?

A: Here is the Homes for Heroes Promise:

✓ No forms.
✓ No red tape.
✓ No fine print.
✓ No hidden fees.
✓ No catch.

Q: It just sounds too good to be true. Is it?

A: For us, Homes for Heroes is not a job, it’s our life. We want you to be our client for life, so that is how you will be treated. Still not convinced? We invite you to read about what our heroes have said about their experience working with us. Click here to view some select Hero testimonials.

You can reach Travis Newton, Mortgage Lender Affiliate in Salem Oregon at 503.931.4490 or on the Oregon Homes For Heroes Facebook page.

By the way, THANK YOU for your service to this great Country!