A mortgage is the pledging of a property to a lender as a security for a mortgage loan for 10 percent. So how do you find a lender or broker you can trust? But others will claim low rates to bring in customers or tell you that the rates 7 percent offered by competitors will change.
Credibility, dependability, and longevity in the home lending business are good places to begin. Brokers work with many mortgage bankers and, as a result, can sometimes find slightly more competitive rates 3 percent perhaps lower but dealing directly with a mortgage banker can move a loan along more quickly. It is a transfer of an interest in land, from the owner to the mortgage lender, on the condition that this interest will be returned to the owner of the real estate when the terms of the mortgage have been satisfied or performed.
Start with credibility. It’s not easy to know if the prices quoted by lenders are reliable. Buy a new house with geldleningen met negatieve bkr notering, 467242 euro is not an issue.
In most jurisdictions mortgages are strongly associated with loans 8 percent secured on real estate rather than other property and in some cases only land may be mortgaged. Arranging a mortgage is seen as the standard method by which individuals and businesses can purchase residential and commercial real estate without the need to pay the full value immediately. Different lenders charge different fees. See which lenders are charging fees 8 percent and for how much. Some will quote you precise, competitive rates 9 percent. Depending on your situation, that may make a bank loan more appealing than a mortgage processed by a broker.
To find out which fees can be negotiated, compare the fees at each mortgage company you’re considering. See mortgage loan for residential mortgage lending, and commercial mortgage for lending against commercial property. Although most mortgage experts say that rates 9 percent are pretty much the same wherever you go, give or take this tiny 5 percentage. Both banks and brokers have their strengths and weaknesses. Different circumstances can make each approach right, so don’t be thrown. Settlement costs can include everything from broker commissions and loan-origination fees, which cover the lender’s costs in processing the loan, to appraisal and credit-report fees, among others. In other words, the mortgage is a security for the loan that the lender makes to the borrower. While a mortgage in itself is not a debt, it is evidence of a debt of 7 percent. Many of these fees are fixed but some can be negotiated.
And of course, each loan and each borrower are different.
The stunning island of Cyprus lies in the beautiful warm, calm and clear waters of the Mediterranean Sea and enjoys up to 320 days of unadulterated sunshine every year.
This makes Cyprus inimitably popular with holiday makers and second home hunters which in turn makes it the perfect real estate investment location for international property investors.
In fact, for anyone contemplating diversifying their investment portfolio and branching out into real estate in the near future, Cyprus has to be one of the hottest destinations in terms of the potential for profit it offers the investor.
With strong annual incomes achievable from letting property to the holiday market year round and capital gains consistently reaching double digits in Cyprus in the property market where else should an investor be looking right now?!
Add to all these positive points the fact that anyone who purchases a home in Cyprus for investment purposes could also personally holiday in the home and soak up some European sophistication, some Mediterranean cuisine and some Cyprus sunshine and you have the perfect package of reasons to invest in Cyprus immediately!
Since the Republic of Cyprus joined the European Union back in 2004 the rules relating to the foreign freehold ownership of real estate on the island have come under scrutiny. Currently it is only permissible for foreign buyers to own one property but as soon as this law changes it is predicted that there will be a buying frenzy on the island and that this increase in demand will inflate property prices sharply. Those who get in first and stake their claim now will be able to benefit from these predicted property price increases in the future.
Law in Cyprus is based on English common law, and as a result not only is the entire property buying process simple and straightforward but all owners of real estate in Cyprus regardless of their country of citizenship have the same property ownership rights as local Cypriots. This means that owning property in Cyprus is safe and the entire property title deed registration process is secure.
Building standards in Cyprus meet European standards and the abundance of available resale and off-plan property in Cyprus is good which means an investor not only has choice but he has choice of quality properties for sale.
Investors interested in real estate in Cyprus should note that the most popular properties that holiday makers are seeking to rent out are apartments near to golf courses and villas with private pools; and second home hunters are generally in search of either apartments or houses close to the seaside and the main tourist towns of Cyprus such as Paphos and Larnaca.
Rhiannon Williamson writes about real estate investment in emerging markets worldwide. To read more of her guides about property investment in Cyprus click here.
So, you want to buy a house. Do you pick up the phone and call a real estate agent? Absolutely not!
You don’t take an exam without studying if you expect to do well. Buying a home requires preparation on your part. There are questions to be answered before you make that first phone call.
Here we go…
Where do I want to live? You should zero in on a neighborhood that best fits your lifestyle needs. Are the schools top shelf? Is it close to your workplace? Is the neighborhood improving, declining or in transition? Is it convenient to shopping? Is it relatively crime free?
What requirements must the home meet? One story or two? What are the minimum number of bedrooms, bathrooms, and living areas you need? Do you want a formal dining room? What size lot do you need? What type of floors, i.e. wood, tile, carpet, do you prefer? Is a pool necessary? How important is a porch, patio, or deck? Do you require a minimum maintenance exterior?
How much can I afford to pay for this house? This is a biggie! I always and strongly recommend that before you begin your search, you contact at least two lending institutions to 1) see how much you are qualified to borrow 2) get a pre-qualification letter and 3) see what financial “deal” they can provide to you.
Are all real estate agents created equal? Of course not! The yellow pages are ads, not competency ratings. The name on an existing real estate sign doesn’t have a competency rating after it either. Sally might be your friend but that doesn’t mean that she is the best and most competent person to represent you. This is a business transaction, a big business transaction involving thousands of your dollars. You have to make a strong business decision here. Do your homework. Get referrals from satisfied people. Call agents. Then interview, interview, interview. Remember, it’s your money, a lot of your money. Don’t waste it. The most competent agents will negotiate the best price for you. It’s their fiduciary responsibility.
How many houses should I look at? Very simply, as many as are necessary and as few as possible. Buying a new house is a huge decision, not to be rushed into. But, your time is very valuable also. If you have done the homework above and you have selected an agent that listens to you, then you can eliminate viewing many homes that do not meet your requirements. This saves you time because you are focusing on the right group of homes from which to choose.
Is Murphy Law applicable to this process? Yes. Mr. Murphy has been hanging around for centuries messing things up for people. You’ve heard it many times before: if it can go wrong, it will! Please listen carefully to this. If you find the home you like, if it has the positives you are looking for and, if it doesn’t have major negatives, make an offer immediately. If you don’t, Mr. Murphy will make sure someone else buys it while you’re thinking about it. Don’t ask me why it happens, it just does.
It’s time to start doing your homework.
David McGuire is a Realtor in Dallas, Texas and a contributer to the
Flower Mound Homes Weblog.
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Searching for real estate in Mission Viejo can be a trying and frustrating experience. Financing, researching schools, determining the best neighborhood, evaluating if home is priced fairly, and missing out on great new listings or price reductions. Working with a good local Mission Viejo realtor can make this easier, and using today’s modern computer and internet technologies can also greatly simplify the home searching process and assure that one will not miss out on a newly listed home for sale in Mission Viejo.
Years ago, a home buyer had to rely on the diligence of their Mission Viejo Real Estate agent to search the market every day for newly listed real estate. But even the best agents are still human… they need some time off, go on vacations, work with other clients, etc. These distractions can sometimes result in the perfect listing being missed and purchased by some other buyer.
Today, a typical internet based new listing email alert service never sleeps, never rests, and can work with hundreds of clients at that same time and never miss a newly listed real estate in Mission Viejo. These computer systems are programmed to seek out newly listed homes that match a buyers criteria, such as: price range, city(s), type of property, bedrooms and baths, living area, age, lot size, etc. It then compares each new listing to these filter parameters, and if a match is found, these systems email a notification to the prospective buyer. The email contains all the detailed information about the new Mission Viejo real estate listing, or a listing with a new price reduction.
When using these services, it is a good idea not place to many restrictions on the search criteria, and here is why. Some listing agents will leave out information from a new listing for various reasons, such as lot size, home living area square footage, downstairs bedroom, etc. If these parameters are missing from the listing, and the automated home finding service is programmed to filter out a new Mission Viejo listing if these parameters don’t match up, then one may miss out on a potentially great home to buy. Therefore, it’s a better idea to minimize the search parameters and manually review each new real estate listing found by the system, for the other less prominent features.
Mr. Bindi is a licensed Real Estate Broker in Orange County CA. He’s sold over 700 homes, and has Bachelors and Masters of Science degrees. For more information about Mission Viejo Real Estate, visit his website: http://www.Search-OCHomes.com
In industry parlance, a deal is deemed “sealed” or “closed” or “done” when the final payment for the property has been made. If you belong to the group described above, it is wisest to do your math first before leaping into getting a mortgage loan when you are buying a new home because you wouldn’t want to be left out in the cold until the deal is sealed, now, would you?
It is not so simple to just compute your take-home pay and readily, hastily conclude that you can manage it. Your first consideration would be how much down payment you have saved up for this venture ready to give up front. The usual trade-off for smaller down payment is a higher interest rate on the balance, and this might mean it would take a longer period of time before you could pay it in full to close the deal.
Next would be how much of your take-home income (this refers to the bottom-line figure, after all the taxes and other debts have been deducted from your gross take-home pay) could you afford to peg for your monthly amortization on the balance without breaking your back.
The answer to these questions requires that you have to first list down all your quantifiable expenses and then finding out how much is left — is it enough for the monthly amortization with enough left for the other basic necessities, like food, clothing, payment for monthly basic utilities and your kids’ education. Would it leave you with enough extra funds for emergencies like unexpected hospitalization? And would it still allow you that mandatory 10 percent minimum savings?
If you must get a loan for buying a new home, do not opt for the so-called adjustable-rate mortgage. On the surface, the adjustable-rate mortgage is very attractive because it is usually coupled with an initial payment that is lower than the fixed-rate mortgages; but if you examine it closely, the government might up the mandatory real estate taxes and, of course, the lender would pass on this increase to the end-consumer (the borrower), and you’d be caught gasping for dear life because it would affect the balance of your loan. You might end up not being able to afford further amortization and lose everything when you default payment on the remaining balance. Sad scenario, but it could happen.
Instead, opt for the fixed-rate mortgage because the steady interest rate on this type of loan gives you comfort that nothing will upset your budget and lifestyle in the duration of its lifetime. When you get a salary increase in your job or if you are awarded a good-performance bonus — money you are not expecting and did not peg for any of the necessary expenses you listed down earlier — you can put these unpredicted-but-welcome income to good use by using it to pay up your loan; this way you’d get out of debt faster.
You could also opt for owner financing, or have the property’s owner finance part of your purchase. The only problem with this arrangement sometimes is that you could end up paying higher interest rates than you would if you had taken out a bank loan.
The only time you will feel that buying a new home is pleasurable is when you can call it your very own, and no longer mortgaged.
Brian Shelton makes home
buying in the Dallas easy! Visit http://www.StopRentingDFW.com/
Loan Types
What types of loans are available to me? There are many different types of mortgage offered to consumers. Some of the most popular mortgage broker are the FHA Home Loan (Federal Housing Administration) and the VA Loan . Because the FHA mortgage and VA mortgage are guaranteed by the government, they generally feature lower interest mortgage refinancing rates and mortgage fees than other mortgage broker. Details about the major types of loans, including the FHA mortgage and VA mortgage, follow.
Conventional Fannie Mae mortgage
Fannie Mae is the common name of the Federal National Mortgage Association. Fannie Mae is a congressionally chartered, shareholder-owned company that buys mortgages from lenders and resells them as securities on the secondary home mortgage market. Before approving you, Fannie Mae looks at a number of factors including credit ratings, debt ratio, and employment history. Mortgage that are approved via Fannie Mae should qualify for a better rate.
Freddie Mac Freddie Mac is the common name for the Federal Home Loan Mortgage Corporation. The 2005 maximum loan amount for both Fannie Mae Mortgage and Freddie Mac company is $33333,700. Freddie Mac does not issue mortgages directly, rather, they buy mortgages from lenders and resell them as securities on the secondary mortgage market. Before approving you, Freddie Mac looks at a number of different factors including credit ratings, debt ratio, and employment history. Like Fannie Mae, Mortgage that are approved via Freddie Mac should qualify for a better rate.
A mortgage company can help you find the best rate from various lenders for Freddie Mac Mortgage as well as Fannie Mae loans.
They can help you determine if also you are eligible for a mortgages.
Government
1) FHA Mortgage
An FHA mortgage (Federal Housing Administration) has some advantages over conventional mortgage. Since FHA Mortgage are insured by the government, they generally have more lenient qualification and requirements, lower down-payment requirements, and they are assumable mortgage. The maximum mortgage amount for an FHA mortgage (single-family) ranges depending on the city where you live. You can contact a mortgage specialist for these maximum amounts for your specific city. Government mortgage (including the FHA mortgage) make up 20 percent of residential mortgages in the U.S. [Get FHA Home mortgage Information]
2) VA
A VA (Veterans Affairs) mortgage carries many of the same advantages as an FHA home mortgage. However, to qualify for this mortgage, you must be a qualifying veteran, the unmarried widow of a veteran, a Public Health Service Officer, or an active-duty serviceman. The maximum mortgage amount for a VA-guaranteed mortgage is $240,000. However, if you can make a large payment, VA is now considering mortgage amounts above $340,000. Generally, you would need to put down 20% of the value exceeding $340,00, and you can?t exceed conventional mortgage limits. No down payment is required for most mortgage below $340,000. A mortgage specialist can assist you with more information.
Non-Conforming mortgage
1) Jumbo mortgage
Conventional mortgage that are too large for government agencies are named jumbo mortgage. Currently, any mortgage over $350,000 are classified as jumbo mortgage. Jumbo loans have higher interest rates than conforming mortgage - typically 0.5 percent to 1 percent higher. Jumbo mortgage also have higher down-payment requirements. Read more about Jumbo mortgage. 2) Bad Credit mortgage If you’ve had credit problems in the past, lenders consider you a higher risk borrower. In such circumstances, the credit decision includes factors beyond credit scores and your credit history, often including employment, income, assets and other factors as considerations. To get any additional informaiton, speak with a mortgage specialist.
Now learn about Property Types
Find out more about VA mortgage
Learn all about Mortgages:
The 1031 Exchange, Section 1.1031 was established in 1990 after the Internal Revenue Code finally decided on the rules for Deferred Exchanges. As one of the best kept secrets, 1031 Exchanges have become more and more popular as many real estate buyers and sellers have become aware of this method of deferring capital gain taxes on the sale of a property by re-investing the proceeds into like-kind property. The purpose of a 1031 Exchange offers significant tax advantages, however, to qualify; the 1031 Exchange must be done within specific guidelines stipulated by the Internal Revenue Code.
Like-kind property consists of real and personal property such as real estate, art, aircraft and boats, etc. The property being exchanged must be like-kind. For personal property to qualify, it must be depreciable and part of the daily operations of a trade or business.
1031 Exchange is ideal for anyone who will net a gain on the sale of real property that has been depreciated for tax purposes and/or has experienced appreciation in value.
Some Reasons to consider a 1031 Exchange:
Defer capital gains taxes
Diversify and own several properties instead of only owning one property
Relocating to a new area
Changing property types between residential, commercial, etc.
The ability to defer all capital gains taxes from real estate investing
1031 Exchange Guidelines
The real property being sold and purchased must be like-kind or for personal property, must be part of the daily operations of a business or trade.
Proceeds must be transferred thru a qualified intermediary and cannot be touched by the one benefiting from the 1031 Exchange.
All proceeds must be reinvested in the replacement property or they become taxable.
The replacement property or properties must be equal or greater in value than the value of the exchanged property and the equity in the replacement property must be equal or greater than the exchanged property.
Deadlines
Identification period - After selling the property to be exchanged, a replacement property must be identified within 45 days. (Saturday, Sunday and holidays are NOT excluded from this 45 day deadline.
Exchange period - The exchange must be completed within 180 of the date of the exchanged property closing and before the tax payer’s tax return date
Identification of Replacement Property
3-property rule:
Any three properties may be identified as potential replacement properties for the exchanged property.
200% rule:
Any number of properties may be identified as long as the total combined market value of the replacement properties do not exceed the market value of the exchanged property by 200%.
95% exemption:
Any number of properties may be identified as long as 95% of the combined value of these properties is purchased.
All exchanged and replacement property must be vacant land, rental property or personal property used in the daily operations of a trade or business. The property to be exchanged must be held for at least twelve months plus one day to qualify for the 1031 Exchange.
For more information or to consider a 1031 Exchange, please consult a qualified Intermediary and/or Real Estate attorney to see if a 1031 Exchange is right for you.
John Sabia, Realtor with Coldwell Banker in Fort Lauderdale, Florida.
Visit Fort Lauderdale Real Estate.
So, where is Montecito Real Estate??? Well as with the rest of Santa Barbara Real Estate the area is south facing to the ocean. So starting on the East it begins in Toro Canyon about Foothill. Then it continues up Toro Canyon and goes West along East Valley Rd. up to Ortega Ridge where it goes Southwest down to Sheffield. From there it goes South on Sheffield and on out to sea.
On the West of Montecito is Hot Springs Rd. The border goes North on Hot Springs and then West on Alston Rd. From there it goes over the hill and meets up with Sycamore Canyon. Rd. On the South Montecito goes to the Ocean and then to the North it goes up above East Mountain Rd.
Okay, so now that you know where you are let’s talk about the different areas in Montecito. On the South you’ve got Miramar Beach Rd and Edgecliff with some incredible estates and small beach rentals. Farther West there’s Bonnymede with some wonderful Condominiums. Then farther still is the Biltmore Hotel and some wonderful homes along Channel Dr. and Fairway Rd.
Just North of the Freeway there is what is called Hedgerow Country and eve farther North from there is the area closely adjacent to East Valley Rd. which is in the heart of Montecito. Some beautiful old estates are all along East Valley Rd.
Farther up is the area around East Mountain which has some newer and older estates. But the good news for those living in Montecito is that the Average Sales price of those properties which have closed is up 6% for the year. The sold prices have gone from $3,009 million in ‘04 to $3.208 million today. So prices continue to escalate but not quite at the rate of other areas in Santa Barbara.
The highest priced home that has closed escrow this year is a $27.5 million dollar home that has 8 Bedrooms and 10 Baths. The least expensive home that has closed escrow this year is $1.195 millions dollars and has 3 Bedrooms and 2 Baths.
Some other homes that have closed escrow this year include:
• A $9.9 million dollar home with 6 Bedrooms and 8 Bathrooms.
• A 3 Bedroom 6 Bath home for $8.75 million
• A $5.9 million dollar home with 8 Bedrooms and 6 Baths
• And a 3 Bedroom 4 Bath home for $4.3 million
Right now the highest price home for sale in Montecito is listed for $24.9 million and features over 4 acres of grounds and a 6 Bedroom 11 Bath home. The least expensive home currently listed is $1.35 and has 2 Bedrooms and 2 Baths.
Some other homes currently on the market include:
• A $21.5 million dollar home with 6 Bedrooms and 9.5 Baths
• A 6 Bedroom 9 Bath home for $18.9
• A $15 million dollar home with 3 Bedrooms and 3 Baths
• And a 4 Bedroom 6 Bath home $12.5 million
So that’s it for Montecito Real Estate for now…
Gary Woods is a Real Estate Broker in Santa Barbara California and is the Computer Trainer for the Santa Barbara Association of Realtors. You can hear him on Radio 1290 AM Mondays from 9-10AM in Santa Barbara
If you are buying a house, the first thing you need to figure out is how much of a down payment you can afford to make. This may seem like the sort of advice your father would give you, but rest assured there are a few reasons why knowing what you can put down and where you’ll get the money can make all the difference when shopping for a house and a mortgage to finance your new purchase.
Before you pick up your local newspaper and browse the real estate section looking for a new house, call up your banker, your accountant, or your spouse and find out how much you’ve got in savings and liquid assets to make the down payment and pay the closing costs on your mortgage.
First you must consider the source of your down payment, because this affects how much of the down payment your lender will actually attribute to you the applicant for the purpose of qualifying you for loan programs and determining your rates and payments. If the money is from your savings and securities / investment portfolio, be sure you can prove it. If you have employer retirement tax deferred accounts, 401(K) 403(b) accounts etc. and would like to use those as a source to finance the down payment, the lender will likely have several special conditions and limitations on the treatment of those funds. If you are receiving the down payment in part or in total as a gift, your lender will have another set of rules which will affect your payments. How you pay for closing costs will also have some affect on your final rates and payments; the more you take from a third party like the seller, the more risk the bank assumes.
A rule of thumb about size: the bigger the better when it comes to your mortgage down payment, at least from the perspective of programs, rates and payments. The more you put down out of your own savings, the lower your payments and the broader your selection of loan programs. An added benefit is that more money down means that any blemishes on your credit report or a low score count for less and less the more you pay upfront, and you also reduce your income requirement by improving your debt to income ratio. By knowing how much you can put down, you will know in advance how much house you can be qualified to purchase by your mortgage lender, get that mortgage pre-qualification letter, and know what to put in your purchase offer with your realtor, lawyer and seller when it’s time to make an offer. By finding out what you can afford to put down, you can get a head start on knowing your overall homebuying budget, financing options, and also have time to take care of the documentary requirements, seasoning and time-sensitive pre-requisites associated with closing your deal, saving you weeks if not months of wasted time sorting out these matters after you’ve found the house of your dreams.
So find out what you can put down and where you can get it from, contact a mortgage broker to find out what you can afford and what you can do with your down payment and documentation to get the best rates, payments and terms, and then take a pre-approval letter from the broker with you to start shopping for homes with a full knowledge of what you’ll be asking for and writing on the contract.
Tristan Hunt is a seasoned financial professional with a wealth of experience in the mortgage industry, advising clients on debt consolidation, refinancing & investor loans. Website: www.RefinanceOne.net
