Posts by John

Recently Discovered Housing Bubble Video Shows That History Repeats Itself

By John, 17 November, 2008, No Comment

As the world around us panics, this historical video reminds us that there have been problems in the housing market before.

HUD Issues New Mortgage Rules to Help Consumers

By John, 12 November, 2008, No Comment

WASHINGTON – For the first time in more than 30 years, the U.S. Department of Housing and Urban Development today issued long-anticipated mortgage reforms that will help consumers to shop for the lowest cost mortgage and avoid costly and potentially harmful loan offers. HUD will require, for the first time ever, that lenders and mortgage brokers provide consumers with a standard Good Faith Estimate (GFE) that clearly discloses key loan terms and closing costs. HUD estimates its new regulation will save consumers nearly $700 at the closing table.

In announcing HUD’s final changes to the regulatory requirements of the Real Estate Settlement Procedures Act (RESPA), HUD Secretary Steve Preston said that changes in the housing market and increases in home foreclosures demands action.

“It has been a long road but today we can finally announce a better way to buy homes in America,” said Preston. “Consumers need and deserve to know what they’re getting themselves into before they sign on the dotted line. After carefully considering the concerns of consumers and the different businesses in the housing sector, we have developed an approach that empowers the average family to shop for the most appropriate loan to meet their needs.”

Last March, HUD proposed reforms to the longstanding regulatory requirements of the Real Estate Settlement Procedures Act (RESPA) by improving disclosure of the loan terms and closing costs consumers pay when they buy or refinance their home. Last May, HUD extended the rule’s comment period to June 12th to allow for more opportunity for comment on the Department’s proposed GFE form.

Brian Montgomery, HUD’s Assistant Secretary of Housing, Federal Housing Commissioner, said, “We have carefully considered the concerns expressed from every corner of the mortgage market in developing this rule. I am convinced that we successfully balanced the needs of consumers with those in the business of homeownership. None of us can lose sight of the fact that millions of Americans simply don’t understand all the fine print of their mortgages and this, in many respects, is at the heart of today’s mortgage crisis.”

Since 1974, little has changed about the process Americans endure when they buy and refinance their homes. Now, HUD’s final reform will improve disclosure of the key loan terms and closing costs consumers pay when they buy or refinance their home.

HUD received approximately 12,000 comment letters following the proposal of its new RESPA rule. In considering those comments, the Department made considerable modifications to its proposal. For example, HUD originally proposed that settlement agents read a closing script at the closing table and that a copy be provided to borrowers. HUD ultimately discarded the script in favor of a new page on the HUD-1 Settlement Statement that allows consumers to easily compare their final loan terms and closing costs with those listed on their Good Faith Estimate.

Most industry commenters said HUD’s proposed four-page GFE was too long. HUD shortened the GFE form to three pages including an instructional page to help borrowers understand their loan offer. HUD continues to believe that consumers need to be aware of the key aspects of their loan as well as associated settlement costs.

HUD agreed with many commenters who suggested the new GFE allow consumers to compare their estimated closing costs with the actual costs included on their HUD-1 Settlement Statement. To facilitate comparison between the HUD-1 and the GFE, each designated line on the final HUD-1 will now include a reference to the relevant line from the GFE. Borrowers will now be able to easily compare their estimated and actual costs in very much the same manner as many of the commenters suggested.

A Final Thought on the Things You Should Know Before Buying A Home

By John, 24 May, 2008, No Comment

If you are taking the next step in life and purchasing a home, chances are that you are feeling the pressure and the anxiety that goes along with this difficult decision. Those who buy homes are very anxious, eager to get any information they can about real estate. Before you buy a home, it always helps to learn all that you can.

The first thing you’ll need to do when buying a home is to find out just how much you can qualify for or afford to borrow. You should also make it a point to check your credit and know where you stand. If you have any problems, you should strive to correct them for you attempt to borrow money for a home. The higher credit rating you have, the lower your interest rates will be.

If you can, you should always attempt to get pre approved by a mortgage broker or lender, as this will show your commitment to the mortgage. Also make sure to look for any payment or prepayment options that can help you take a few years away from your mortgage. Once you have been pre approved for a mortgage and know where you stand with your monthly payments, you can start shopping for property.

When you shop for a home, you should only buy real estate that is perfect for you. Before you start looking, you should always make a list of everything you want your home to have, based on what you want and what you actually need. You should also make sure that you mark out any areas that you are willing to come to a compromise on, just in case you have to.

To assist you with finding the perfect home, you should enlist the services of a reputable real estate agent. When you meet with your agent, you will go over how much you are willing to spend, and what type of home you are looking for. You’re agent will know where ideal properties are, and help you find the home that is best for you.

Your agent will supply you with a list of potential properties that meet your budget and your features. Once you get the list, you should drive by the homes and check out both the home and the neighborhood. You should consider the appearance and location of the home, safety, access to the freeway, schools nearby, commute time to work, local shopping, and even recreational activities.

If you don’t find something that interests you the first time, you should keep looking until you find the home that is best for you. Your agent can help with tours of homes and such, even tell you information about neighborhoods that you aren’t familiar with. If you have chosen a good real estate agent, he will care about helping you find a home and go out of his way to ensure that you get exactly what you want.

To get the most from buying a home, you should always hire a real estate agent that you can trust. Your agent will go a long way in helping you buy a home, from finding properties to giving you pointers and tips along the way. Good real estate agents will care about your satisfaction, and will do all that they can to help you find the home of your dreams. You can always buy a home without a real estate agent, although it will take you longer and you won’t get the help and other amenities that a real estate agent will bring to the table.

The Emotional Hazards in Buying Your Home

By John, 23 May, 2008, No Comment

Buying your first home is a large step to take. It is an entirely different process that you will follow, with an entirely new set of rules to begin learning. Because of the large changes that occur when you buy your first home, there are always those who walk into a deal over their head. Making sure that you don’t get the wrong options presented to you will help you to invest right the first time.

The major factor that you will need to consider when deciding on your first home is where you stand with the search. One of the largest mistakes that people make is deciding that they like a specific home, then only investing in that home by becoming emotionally attached to it. This can cause several problems. The first is that you may not be able to get the home because of something happening in the process. This can be disappointing and tiring. The second mistake is that you will offer a price that is too high or too low. Make sure that you know exactly what the house is worth and how it fits into your needs before becoming attached.

Not only will you need to shut off emotions in order to find and compare homes, but you should also do this after you have chosen a home. Even if you have signed a contract for your first home, the process isn’t over. You will have to find a mortgage and inspections will have to be made. If there is a large problem with the home that needs to be prepared, or if something goes wrong in the process of the loan, you will have to start over again. If you are prepared and detached until you set foot in your new home for the first time, it will make the entire process much easier.

From here, you can decide exactly what you can afford and how you will get there. The best place to start is with your credit history. By knowing your score, you will also be able to estimate the type of loan that you will be able to get. You will want to make sure that your bank statements are stable and secure. There is nothing like walking into your first home and not being able to pay the mortgage from the beginning.

By staying detached and logical about your new home, you will have the ability to find the best. Preventing the mistakes in the beginning will save you hours and days of time, as well as stop years of hassle that may occur. Being prepared and honest about what you are looking for is an easy way to help with the process.

Avoiding the Pitfalls of Buying Real Estate

By John, 22 May, 2008, No Comment

The last experience that anyone wants to add to their list is being involved in a real estate deal and having everything go wrong. It is hard enough to simply find a place to move and to have everything from the contract to the loan be put in place properly. If you don’t want to have extra hassles when you are packing your boxes, then preventing some pitfalls along the way can help.

One of the major problems that several homeowners run into is having the wrong information or not finding the information that they need for their home. You don’t want to get caught with the wrong loan, the wrong type of financing or payments that you have to make every month that you can’t afford. There is nothing that drives a family out of a home faster than a bad financial deal. Understanding terms and investigating possibilities will help to prevent this.

A second pitfall to avoid happens when you are looking at the property. You want to make sure to not get too attached to an area or to approach the property with specific intentions. Eventually, you will end up getting a bad deal and won’t be able to benefit the most out of a property that may have been better. Making sure that you examine every part of the property and are certain that it is right for you can help you to feel like you have invested in something more worth while.

With every part of real estate investments, you want to make sure that you do several things. The first is to investigate the terms and possibilities to you. The second is to move logically into a real estate investment. The third is to double check your information, your investment and the other options available.

As long as you keep your mind, eyes and ears open, you will have the possibility to find the best piece of real estate available to you. This will help you to get the most out of your investment. This isn’t something that will just last days or one year, but for several years to come. It is best to do things right the first time.

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