Friday, February 1, 2013

How to Keep Your Mortgage Approval Approved

Written by Broderick Perkins for the Realty Times
You know how tough it is to qualify for a mortgage.
Proof you've got a long-term job with ample income. A credit score to the moon. Your life's savings as a down payment. More cash stashed away. A debt-to-income ratio to die for. For some, tax returns for the last two years.
You've been there, done that. For weeks now. Maybe a month or more.
You've fought the good fight, you've run the gauntlet of mortgage qualifications and you have your signature-tired hands on that coveted home loan approval.
Now, all you have to do is not blow it.
For goodness sake, don't make any surprise financial moves that could cost you your home loan.
Your mortgage approval is primarily based on documenting your income and assets, your equity stake or down payment, your credit and the cash you'll have left over after the deal is done.
Once you have a mortgage approval, if you change the profile of any one of those qualifiers, you could have to kiss your mortgage goodbye.
Lenders today don't just check your qualifying information once or even twice. Three, four or more checks, of one document or another, aren't out of the question in today's tight lending market.
Avoid big purchases - If you buy a new car, change the lease, or acquire another large possession, it could show up on your credit report or bank statement.
The lender could think you've gone beyond the risk the lender is willing to accept on your mortgage - especially if you qualified by a hair.
If the new loan or purchase amount upsets the debt-to-income ratio the lender used to approve your home loan, your mortgage could go "poof."
No new credit - Likewise, don't open new credit cards, even for a zero interest rate. Those credit card offers will come streaming in after you close your mortgage. Just wait. The lender didn't approve you based on the additional card or extra loan.
Pay your bills - Also, pay your bills on time, even if there's a dispute. Stop paying a bill and the blotch on your credit report can block your mortgage.
Keep your job - Be kind to your boss and don't get fired. Also, don't go looking for new work right now, unless it's a second job to make more money.
Certain job changes also can affect how the lender rates your creditworthiness.
That includes a job change between industries, a job change to start a new company and changing from a job with a salary to a job that pays by commission.
On the other hand, get a promotion and a raise and you should be fine.
Don't cash out - Leave your stashes of cash alone. Don't transfer large sums of money between bank accounts. Don't make random, undocumented deposits to or withdrawals from your bank account.
Don't be stupid – It should go without saying, but criminal activity, trying to buy a second home and trying to add a co-signer or name to the loan, after approval, could all also get your mortgage canned.
Remember, stuff happens. There are events beyond your control that could cost you your mortgage. A pink slip. A divorce. Hospitalization. The co-signer bails.
However, once your mortgage is approved, do keep tight reigns on what you can control.

Written by Broderick Perkins for the Realty Times

Rent Vrs Own

How much evidence is needed to make a decision to get out of the rent race and become a homeowner?
Compare your rent with a mortgage payment on a similar size property. If you want a larger home than your current one, use the rent that property would require instead of what you're currently paying. If it's considerably cheaper, you may not need any further encouragement.
By the time you consider the principal reduction, appreciation and tax savings, your monthly cost of housing could be much less than the rent you're paying.
The principal reduction included in each payment is like a forced savings account that increases as your mortgage balance decreases. Your equity in the property will also grow due to appreciation. The equity is part of your net worth and an investment in your family's future.
The income tax savings can be an additional financial consideration if the combined interest and property taxes exceed the allowable standard deduction.
Trends are showing that both tenants and homeowners are staying in their homes longer. It's been said that whether you rent or own, you're paying for the home. Do you really want to buy the home for your landlord? Check out your numbers on a Rent vs. Own.

Wednesday, January 23, 2013

Shifting from A Buyer’s Market

As the market shifts from a buyer's market, it's good to know how to improve your chances to have the seller accept your offer.
Once you decide on a home, don't waste time; write an offer and submit it as soon as possible. Competing with another buyer happens more frequently than you'd expect. Multiple offers are a seller's advantage but here are some tips to level the playing field:
  • Realistic offer - don't give the impression you're trying to "steal" the property. Submit comparable sales that justify your offer.
  • Pre-approval letter - this satisfies seller's biggest concern that an unqualified buyer will unnecessarily take the home off the market and the seller will lose other opportunities.
  • More earnest money - it shows you're serious and makes the seller feel like the contract will actually close.
  • Minimize contingencies - from a seller's standpoint, each contingency is one more reason why the sale won't go through. They feel the home is "off the market" and they're in limbo.
  • Shorten inspection period - your agent can help you set a reasonable date but let the seller know you're willing to close prior to that if possible.
  • Write a personal letter to the seller telling them why you want their home - this can be the emotional connection to the seller that makes the difference in you getting the home.
A seller wants to feel confident that the offer they accept will actually close so they can plan for their next move. Following tips like these can definitely affect negotiations and help put together an offer that is more likely to be accepted.

Monday, January 14, 2013

The Market is “Looking Up”

January is always a good time to take a look at Market Trends. Just how did the previous year shake out when looking at the Total Volume in Residential Real Estate on Mt Hood? Also, where did the Median Price and the Number of Sales stack up when compared to the year before?

So, I decided to take a look at not just last year, but the last ten years of data for the Mt Hood Area, including Welches, Brightwood, Rhododendron, Government Camp and part of Sandy Oregon.
It took until the 3rd quarter of 2012 to finally see the market experience “appreciation” for the first time in years! We have to remind ourselves, that this indeed has been a very challenging real estate market nation wide.

Numbers don’t lie. We have indeed crawled out of a big Hole!!
10 Year Volume Trend on Mt Hood 2















The 2012 Mt Hood Residential Sale Volume was over $28,000,000 in 2012. The Median Sale Price was $172,000.
Median Sale Price Trend on Mt Hood 2The ten year Number of Sales per year is indeed one of the most dramatic graphs. Things are indeed back “On the Way Up!”
10 years of SalesperYear
Check out all unique Homes and Cabins in the Mt Hood area by property type:

Interest Rates are excellent and Home Prices are still affordable, a winning combination to to buy in 2013. When looking to buy Mt. Hood Real Estate come to MtHoodRealEstate.net