Information on Home Buying & Selling, and state of the real estate market in Salem and the entire north shore of Massachusetts including Beverly, Peabody, Lynn, Danvers, Middleton, Ipswich, Hamilton, Wenham, Essex, Rowley, Manchester-by-the-Sea, Newburyport, Plum Island, Amesbury, Groveland, Georgetown, Haverhill, Merrimac, Andover, Etc.
Friday, November 25, 2011
Plan now for home improvement throughout the year
Spending more time indoors at home might be bringing some potential projects to your attention. Maybe you've noticed fraying carpet under your toes, chipped paint on a window frame or a paint color that feels outdated - whatever needs to be addressed should get marked down on your fix-it list.
Give yourself a deadline for completing the list and then call a household meeting to start prioritizing. One of the most important things you can bring to that meeting is an idea of how much you can afford to spend. Given that the economy is still lagging - and many people are feeling that pull on their pocketbooks - it's wisest to avoid going into debt to accomplish everything you want to do.
Setting a home improvement budget gives you parameters to work within as you weigh the importance of each project on your list. However, you should also come to the table with a reasonable idea of how much it will cost to complete each of the tasks you want to finish.
Armed with your list and your budgetary figures, go through each item, weighing the pros and cons of both doing it now and letting it wait. You'll inevitably have a lot of options, including putting things off and saving more money throughout the year, or investing some money in repairs now and letting your savings grow for midyear projects. Naturally, you'll also need to consider the constraints of weather on your projects - if you want to put on a new deck, you'll have to wait until at least spring. Consider the fact that an outdoor project might feel a lot more necessary when warmer weather arrives than it does now.
Your long-term plans for your home should also come into play. If you're planning on selling anytime soon, consider carefully whether the projects you plan on doing will pay off at sale time. Additionally, if you plan on catching a buyer's eye, take an objective look at what might help you make the sale. If you're working with a Realtor, you might even want to discuss with them the best fix-ups and repairs within your budget.
Thursday, November 17, 2011
New Massachusetts Scrap Metal Law Passes House
This law will require the scrap dealers to get a valid photo ID from anyone selling metal, and record their information along with a description of the metal they are selling. They must also hold onto any scrap metal for at least 24 hours before reselling it. It will make it illegal for any private citizen to sell metals that are obviously not household items such as manhole covers, metal bleachers, fire hydrants, etc. Currently someone can sell those items with no questions asked.
See more information on the law and scrap metal problem below:
http://www.malegislature.gov/Bills/187/House/H03723
http://www.salemnews.com/local/x67365945/Bill-aims-to-end-rash-of-metal-thefts
http://boston.cbslocal.com/2011/07/19/coakley-wants-laws-to-track-scrap-metal-sales/
http://www.tauntongazette.com/news/business_news/x2063885724/Massachusetts-scrap-metal-dealers-push-for-tougher-laws-to-deter-thieves
Monday, October 31, 2011
House Prices: Where They Will Be in the Spring
Many sellers want to wait until the spring before putting their home on the market. This might be for any of several reasons:
- They don’t want to be inconvenienced during the holiday season.
- They believe that they will see more potential buyers and as a result will get a higher price.
- In the northern part of the country, they might not want people walking through the snow and then into their house.
- All of the above
Will This Actually Happen?
“U.S. foreclosure activity has been mired down since October of last year, when the robo-signing controversy sparked a flurry of investigations into lender foreclosure procedures and paperwork. While foreclosure activity in September and the third quarter continued to register well below levels from a year ago, there is evidence that this temporary downward trend is about to change direction, with foreclosure activity slowly beginning to ramp back up.
What Do Experts Believe the Impact Will Be?
- Zillow believes we will not see a bottom in prices until the first quarter of 2012.
- Standard & Poors thinks prices will drop %5 in the next few months.
- JP Morgan Chase believes prices will depreciate 6 to 7% over the next six months.
- Barclays says prices will fall 7% by the end of the first quarter of 2012.
Bottom Line
Wednesday, October 12, 2011
Selling your home out of season? A great deck makes a difference
While winter may not be the optimum season to showcase your landscaping, there is one improvement you can make that will help you boost your home's outdoor appeal no matter what the season: a deck.
When potential buyers visit your home in winter, they might not be able to envision how green and lovely your backyard will look come spring. But they will be able to see with their own eyes the square footage that a deck adds to the home's living space.
Decks, patios, sunrooms and porches have always been popular with home buyers, but real estate agents say that too often those spaces are neglected or not used to their best advantage. Yet outdoor improvements like a deck can significantly enhance your home's value and appeal. In fact, at the time of resale, a deck will recoup, on average, about 73 percent of the original cost of building it, according to Remodeling Magazine's Cost vs. Value report.
"Anything that adds living space adds value, and the least expensive way to gain space is to build a deck or turn the one you have into an outdoor room by staging it so that it flows seamlessly with the rest of the house," says Mary Beth Harrison of The Harrison Group, a Dallas-based real estate agency. "A great deck can set your home apart from others with the same interior floor plan or square footage, and deck additions typically add value when it comes time to sell."
The cooler temperatures of fall and early winter make the season a great time to add a deck to your home. Or, if you already have a deck, you can enhance its appeal by adding simple touches and accessories.
A bonus space - for example, a tiny deck or rarely used balcony off a master bedroom - can be transformed into a romantic getaway by staging it with cozy, cushioned seating and a raised firepit. You can safeguard your deck and add designer style with Latitudes deck stones, 16-inch interlocking square tiles made of natural slate or granite. Deck stones can provide an effective fire barrier that's an asset under firepits or grills, or when used to create an outdoor kitchen.
Lighting is another way to boost appeal. LED deck lighting kits, like those offered by Deckorators, are both practical and visually appealing. Adding lighting to a deck can be an important safety feature, and also helps create a warm, welcoming mood for evening entertaining.
Another improvement that speaks to both safety and visual appeal are deck railings. Decorative railings with ornate balusters, post cap and postcovers can give virtually any wood or composite lumber deck a distinctive look for a modest investment.
"More than ever before, people look at their decks as outdoor entertainment areas," says Chris Fox of Universal Forest Products, producers of Latitudes Composite decking and Railing and Deckorators, a leader in decking railing systems and deck accessories. "For some, it's a kitchen; for others, a living room. Decks can be party spaces or quiet retreats. With so many different types of deck materials, lighting, rail systems and decorative accents, it's possible to turn a plain deck into a great outdoor space."
"Potential home buyers always react positively to nice decks that look like a great place to hang out," says Harrison. "From a buyer's perspective, if all else is equal, it's true that the home with the best deck wins."
Sunday, September 04, 2011
Common credit myths about buying a home
Myth: If your bills are paid and you've never defaulted on a loan, mortgage or credit card bill, you don't need to worry about your credit report or credit score.
Truth: Many factors influence your credit score, and payment history is just one of them. When calculating your score, credit bureaus also consider length of credit history, types of credit used and ratio of credit available to credit used. Even if your payment history is good, scoring lower on one of the other factors could lower your overall credit score.
Myth: As long as you know your credit score, you don't need to look at your credit report before applying for a mortgage.
Truth: A lender will certainly look at your credit report, so you should know what's on it before they do. Errors may occur on a credit report, and if there are any negative marks on your credit history you'll want to know about them - and address them - before a lender asks.
Myth: Checking your credit score is a hassle, and it can't really help you manage your credit in the long run.
Truth: Websites like FreeCreditScore.com make it easy to check your credit score. Keep in mind that lenders use a variety of scores when evaluating credit worthiness, and the one you obtain online will vary from what a lender might see. Still, any score can be a valuable educational tool that helps you better understand how lenders view your credit. FreeCreditScore.com's Credit Score Center can help you understand how your score is calculated, which factors impact it and the best time to apply for credit.
Myth: If your credit is not perfect, you won't be able to get a mortgage.
Truth: Lenders are more strict than they've been in the past and a good credit score and report can certainly make you a more appealing prospect to them. However, a score in the lower range doesn't mean you can't get a mortgage at all. But a higher score is likely to net you more options - and better terms.
Myth: When you apply for a mortgage, the lender could share your personal information (including your credit score and history) with other companies.
Truth: The law limits how banks and other financial institutions can use your information and to whom they can disclose it. If you're not sure how a lender may use your information, ask. Depending on the situation, you may be able to limit disclosure of your information.
Home prices and interest rates are still low across the country, making it a good time to buy a house, real estate experts say. Knowing the truth behind some common credit myths - and understanding your own credit history and score - can help you take advantage of the many opportunities still available for home buyers.
Thursday, September 01, 2011
Moving with Children? Here Are Some Tips To Make It Go Smoother.
As you travel through adulthood, the unknown becomes more alluring, but it's because you've been through major life changes before. That's why it's important to take some steps to make this major transition easier on your kids. Here are some tips from the moving experts at Penske truck rental for helping your children adapt to a new place, along with some practical moving advice for families:
* Open a line of honest communication. It can be hard to tell your kids that they'll be moving, but making sure that they know they can talk about how they're feeling about the move is important. Try to keep the conversation positive by telling them about all the fun things they'll be able to do in their new home, but acknowledge that they'll feel some sadness about leaving their old one.
* Help them say goodbye. Organize a going-away party for your children and their friends, and work with the parents of their friends to gather contact information so they can keep in touch after you move.
* Take inventory. Take a minute with each child to go through toys and clothes to see what can be donated. By letting them help with these decisions, you can eliminate any angst that might come if they realize something they wanted was left behind when you get to your new home.
* Pack a first-day box. Have each child pack a box of things that they will want the first day you move into your new home, like favorite toys, books or stuffed animals. Have the movers pack these boxes last so they are the first thing that is unloaded when you arrive. If you are moving a long distance, have each child pack another bag with items to keep them entertained during the trip.
* Form a moving team. Creating roles for your older children so they can help you move can make your move go quickly and smoothly. If possible, arrange for somebody to watch your younger children so you can focus on moving tasks. Hiring movers can also help take some of the pressure off you so you can tend to your children. Your younger children may also be thrilled by the chance to see the moving truck up close, so take the time to show them.
* Help them feel at home. Showing your children new parks and other attractions in your new community will help them feel excited about their new home. Plan ahead to get them enrolled in activities with other children so they can quickly make new friends. However, be sure to explain to them that making new friends takes time, so they aren't discouraged if it doesn't happen for them right away. Communicate with their teachers to see if there's anything special you can do to help your children feel more comfortable at school.
By doing the little things to help your children cope with the tough parts of moving, you'll put them in a position to acclimate themselves to their new home quickly and easily. For more helpful moving tips, visit www.pensketruckrental.com.
July 2011 Pending Home Sales Up Almost 15% Over 2010
The Pending Home Sales Index,* a forward-looking indicator based on contract signings, slipped 1.3 percent to 89.7 in July from 90.9 in June but is 14.4 percent above the 78.4 index in July 2010. The data reflects contracts but not closings.New Law for Homes Heated by Oil Effective Goes Into Effect September 30th
For those who need to install this equipment, state officials estimate that the typical cost of installing either an oil safety valve or oil supply line with a protective sleeve ranges from $150 to $350 (including labor, parts, and local permit fees). While it is an expense that is not insignificant, the costs to clean up a leak can be thousands of dollars.
It is important for home owners to remember that this rule applies to all home owners, regardless of whether they are selling their home or not. The Massachusetts Department of Environmental Protection (DEP) has an excellent, easy-to-understand document that explains this new rule. The document can be found at www.mass.gov/dep/cleanup/laws/hhsl.htm.
Thursday, August 11, 2011
Question About the Costs if Selling a Home
If we sell our house for 245K, and we owe 232K, the Realtor's commission is 5%, and then there are closing costs. How do we do this? Do we just show up with our check book to pay any money owed? Will there be money left over for us to have any small profit? What do we expect? Do we need to be prepared to have several thousand dollars in cash?
Answer:
Here are your typical seller costs:
- Marketing Fee/Broker Commission (using 5% as an example*)
- $12,250
- State Transfer/Stamp Taxes ($4.56 per $1000)
- $1117
- Deed Preparation
- $150
- Recording Fees (mortgage discharge)
- $75
- Misc Charges (tracking, Fedex & payoff fee, etc.)
- $200
Monday, August 08, 2011
Questions About Commissions and Contracts
Question:
How much does a real estate agent charge for commission? Is there a grace period in the listing agreement in case I change my mind?
Answer:
By law commissions are negotiable. Each agent or company sets their own commission rate, and each one decides how much, if any they will negotiate. With our company it varies by each property. If a seller wants try "try" a higher selling price than we recommend, we charge a higher commission because it is going to take longer to sell the property. The same goes for properties that is going to be a short sale because it is a lot more work for us and takes longer to close. If the property is in a location that sells very quickly, and the seller listens to our expert opinion on listing price, we may consider lowering our commission.
Before you enter into a listing contract, make sure you really want to sell your home and do not just want to "test" the market. There is typically no "grace period" in a listing contract. However, just like other relationships, sometimes you find out it's just not a good match for the long haul. Make sure the agent (and broker/company) gives you an easy out option if you feel the agent is not meeting your expectations so you can move on (and get it in writing). But remember to give the agent you do choose a chance. Just because you don't receive an offer in the first week or month doesn't mean your agent isn't marketing your property correctly. This is a difficult, unpredictable market for even the most seasoned experts.
Good luck. Contact me through Trulia if you have any questions.
Jim Armstrong
Broker/President
Armstrong Field Real Estate
Monday, August 01, 2011
Mortgage Interest Rates Tick Up
U.S. averages as of July 28, 2011:
30 yr. fixed: 4.55%
15 yr. fixed: 3.66%
1 yr. adj: 2.95%
Tuesday, July 19, 2011
Why Do People Actually Buy a Home?
It seems that every time we talk about real estate today the conversation immediately goes to the financial aspects of buying a home. Where are prices headed? Where are interest rates headed? Should I wait to try and get a ‘better buy’? Should I wait until I can get a ‘steal’?The odd thing about all these questions is that survey after survey keeps telling us that price is not the reason families actually buy a home. When money is considered at all, it is in light of not paying rent to a landlord. Let’s look at two recent surveys as examples: National Housing Survey The top five reasons given in the survey for buying a home, in order, are: § It means having a good place to raise children and provide them with a good education § You have a physical structure where you and your family feel safe § It allows you to have more space for your family § It gives you control of what you do with your living space (renovations and updates) § Paying rent is not a good investment The Myers Research and Strategic Services Survey The top five reasons given in the survey for buying a home, in order, are: § Home ownership provides a stable and safe environment for children and other family members § Home ownership means the money you spend on housing goes towards building equity, rather than to a landlord § Home ownership creates the opportunity to pay off a mortgage and own your home by the time you retire § Home ownership creates the opportunity to live in a neighborhood that you enjoy § Home ownership allows you the right to decorate, modify and renovate your home as you see fit Bottom Line Price dominates conversation when we talk about buying a home. However, when it comes down to it, we actually buy for the same reasons our parents and grandparents did – we want a better lifestyle for ourselves and our families. See the original article here: http://kcmblog.com/2011/07/19/why-do-people-actually-buy-a-home/
Wednesday, June 01, 2011
Housing Trends eNewsletter- Jim Armstrong
Friday, May 20, 2011
Foreclosure rate retreats from record high | Inman News
By Inman News
Inman News™
Date: Thursday, May 19, 2011
The percentage of homeowners with mortgages who were in foreclosure or seriously delinquent fell during the first three months of the year, and improvement in the performance of loans taken out from 2005-07 suggests a sustainable trend, the Mortgage Bankers Association said today in releasing its quarterly National Delinquency Survey.
The serious delinquency rate -- the percentage of loans in foreclosure or delinquent by 90 days or more -- was 8.1 percent during the first quarter, down from 8.6 percent during the last three months of 2010 and 9.54 percent a year ago.
The percentage of mortgages in foreclosure was 4.52 percent, down from a record high of 4.64 percent in the fourth quarter, and the percentage of loans behind by 90 days or more dropped for the fifth consecutive quarter, to 3.58 percent.
"Of particular importance is that the drop in the percentage of loans 90 days or more past due was driven by improving numbers for loans originated between 2005 and 2007," said MBA chief economist Jay Brinkmann, in a statement.
See the rest of the article at:
http://www.trendmls.com/Guest/News/IndustryNewsShowDoc.aspx?InmanId=143436
Tuesday, May 17, 2011
Even the Naysayers Are Saying To Buy Now!
“Home ownership is touted as the “American Dream”. It is credited with enhancing wealth, increasing civic pride, improving self-esteem, crime prevention, child development, and better educational outcomes, among other benefits. This paper does not dispute any of these claims.”
“After setting the holding period to the average American’s tenure in a residence, renting (not buying) proves to be the superior investment strategy over most of the study period… Individuals, on average, were better off in economic terms to have rented for most of the years in the study period. This first result is strongly dependent upon fiscally disciplined individuals that, without fail,reinvest any residual savings from renting.”
“(F)undamental drivers now appear to be in place that favor homeownership over renting in the near term future…The second finding might seem unwise to many given the recent crash in the real estate markets around the country. However, rent-to-price ratios now seem to be in place along with other fundamental drivers that favor ownership over renting.”
“Conditions (historically low mortgage rates and relatively low rent-to-price ratios) now seem in place to favor future purchases.”
Bottom Line
Qualified Residential Mortgage Harms Home Buyers With Good Credit and Housing Recovery
Friday, March 18, 2011
Massachusetts Home Buyer Workshops in Salem
Upcoming Free Real Estate Seminars Information for Buying Real Estate in Massachusetts |
Buying Foreclosures and Short SalesDate: Wednesday, April 13, 2011 Time: 6:00pm - 7:30pm Location: Armstrong Field Real Estate Office 281 Essex Street (Crombie Street Entrance), Salem, MA Cost: FREE With all the homes that have been taken by banks through the foreclosure process, it's the ideal time to find a home that you can purchase at less than market value. Looking to invest in an income producing property or flip a home... there's no better time to do it than now! Hear from the experts in the field about how to find a foreclosed home or short sale, how to make an offer that will assure you will have instant equity, and how to avoid the issues that can come with these properties. |
Home Buyer WorkshopDate: Wednesday, April 27, 2011 Time: 6:00pm - 7:30pm Location: Armstrong Field Real Estate Office 281 Essex Street (Crombie Street Entrance), Salem, MA Cost: FREE It is the ideal time to buy your first home. Mortgage interest rates are still at historic lows, the price of homes has bottomed out and the inventory of homes is great. Despite what you read in the media, mortgages are available for anyone with half-decent credit. Live the American Dream by becoming a home owner! Find out how you can qualify, how to find the home of your dreams, and how to avoid the pitfalls. |
Monday, March 14, 2011
Selling your home in 2011? Tips to add value during late winter/early spring months
Major home renovations can be overwhelming, but there are a few fundamental repairs that can update your home's appearance and increase its value. If you're planning to sell your home in 2011, take advantage of the colder winter months to prepare your home for a spring sale by focusing on a few key projects:
Make a first impression.
The entryway is the first up-close encounter a potential homebuyer will have with your home. Manicure your front yard and update or even replace your front door to complement your home's exterior. Select a rich, dark stained wood or bold white door to draw attention to the main entry and add personality to your home. If your door is already in great shape, consider a simple replacement of weak or older-looking hardware that will impress buyers at first sight.
Get cookin' in the kitchen.
Experts agree that a kitchen can significantly impact a home's perceived value. An outdated kitchen can be a deal breaker for many homebuyers. Naturally, then, it's the place you might spend the most amount of time updating. To increase the appeal of your kitchen, consider investing in updated, matching appliances that match the style of your kitchen. Some manufacturers even offer replacement panels to update the exteriors of older appliances.
Next, if you can't afford to add new cabinetry, change out the hardware so the knobs, drawer pulls and handles match your decor and add a modern flair. Adding technology-driven fixtures, including built-in water filtration systems, garbage disposals and high-tech faucets is another great way to increase the room's appeal. Delta Faucet's Touch2O Technology will impress homebuyers and add a sense of luxury to the room. The technology enables users to turn the faucet on and off with just a touch anywhere on the spout or handle, and is available on a variety of models.
Update and upgrade light fixtures.
Lighting is key. It can drastically change the look and feel of a room, and lighting fixtures are affordable and relatively simple to install on your own. Shop discount stores and home improvement depots to find a statement piece to add spice to your living room. A beautiful ceiling fan with lighting can serve double-duty to update your family room. Remember, well-lit and bright rooms appear larger and more open.
Step on it.
Flooring is one of the first things that potential homebuyers notice. Make sure you dust, vacuum and clean so that you show off the flooring to its best advantage. If you have carpet, consider replacing it with wood floors or wood alternatives. If you already have hardwood floors, polish and protect your flooring so that it gleams when potential buyers step into the home.
Whether you're trying to sell your home this winter or simply want to update its look, you don't have to wait until the spring thaws. When the cold weather drives you inside, take advantage of the time to make attractive upgrades that can increase the appeal and value to your home.
Reprinted with permission from:
www.aracontent.com
Saturday, March 12, 2011
Why You Should Not Buy a Car
| When you get a raise or accumulate some savings, you may find yourself confronted by an innate instinct of modern civilized men and women: The desire to spend money. It begins simply, by going out to restaurants, then accelerates to purchasing clothing, electronic gadgets, and since North Americans have a special fondness for the automobile, you may even buy a "brand new car." If you're married or ambitious, a few months later your thoughts eventually turn toward buying your own home. Or a move-up home, if you are already a homeowner. Next, you contact a loan officer to get prequalified for a mortgage loan. You state your desired price and how much you can put down. You provide your income and may even supply pay stubs and W2 forms. The loan officer methodically crunches the numbers (by telephone, in person, or even over the internet). "If only you didn't have this car payment... You see, when determining your ability to qualify for a mortgage, a lender looks at what is called your "debt-to-income" ratio. A debt-to-income ratio is the percentage of your gross monthly income (before taxes) that you spend on debt. This will include your monthly housing costs, including principal, interest, taxes, insurance, and homeowner's association fees, if any. It will also include your monthly consumer debt, including credit cards, student loans, installment debt, and... ...car payments. For example, suppose you earn $5000 a month and you have a car payment of $400. At current interest rates (approximately 8% on a thirty-year fixed rate loan), you would qualify for approximately $55,000 less than if you did not have the car payment. Even if you feel you can afford the car payment, mortgage companies approve your mortgage based on their guidelines, not yours. Do not get discouraged, however. You should still take the time to get pre-qualified by a lender. However, if you have not already bought a car, remember one thing. Whenever the thought of buying a car enters your mind, think ahead. Think about buying a home first. Buying a home is a much more important purchase when considering your future financial well being. |
Wednesday, March 09, 2011
Home Buyer Workshop Will Show Home Affordabilty - Salem, MA - 51 - AmericanTowns.com
A Home Buyer Workshop will be held on March 16, 2011 in Salem, MA. The Wall Street Journal said that with the combination of lower home prices and historically low mortgage interest rates, home affordability is the best it has been in decades.
The workshop will be presented by a Realtor, a mortgage consultant, a real estate attorney, and a home inspector. Each will give pointers on how you can make the best of the current real estate market, and how to avoid any pitfalls along the way.
The workshop is Free, and will be held at the offices of Armstrong Field Real Estate located at 281 Essex Street in Salem, Mass. Preregistration is required. For more information, call 978-740-8700 or go to www.ArmstrongField.com.Friday, March 04, 2011
Some Common Questions About Buying a Home
The absolute first step to take is to talk with a mortgage person. There are a few reasons for this. First of all, you want to know where you stand financially in regards to qualifying for a mortgage. You will find out how much of a mortgage you qualify for, and how much you can really afford. Many times a bank will qualify you for more than you are comfortable paying each month. We do not want you to be what we call "house poor", meaning, yes, you now have a home, but you don't have enough money left over after paying the mortgage to enjoy life.
The second reason is that if your credit score is a little low, a good mortgage person will explain how you can improve your score... sometimes dramatically. It does take at least a couple of months for any changes you make to trickle down to your credit score. But it could mean paying a lower interest rate, and therefore have a lower mortgage payment, so the wait may well be worth it.
The last reason is that you cannot make an offer without a mortgage pre-approval. No seller will consider your offer if you can't prove you can pay for it. Also, you don't want to waste your time looking at $300,000 homes if you would only qualify for a $250,000 one.
No, the qualification is the same, but you may want to look into an FHA 203K rehab loan. This is a specialized mortgage that gives you extra money above what you are paying for the property that you can use for repairs and upgrades. Many foreclosed properties will need work.
With an FHA mortgage the minimum down payment is 3 1/2% of the purchase price. You will also need around 2% (roughly depending on the mortgage) for closing costs, but we can almost always get the seller to pay for most of that. The are other loans available through Mass Housing and the VA that have low or even no down payment requirements. Again, it depends on your particular financial situation. There are also matching down payment programs in many cities that I can help you with.
Everything here also applies to a short sale. The major difference is the length of time needed to close. With a regular home sale, including bank owned properties, the closing is typically 4-7 weeks after the offer is accepted. With a short sale you are looking at a minimum of 8 weeks, with 3 to 4 months more common, and 4 plus months not uncommonly seen. The saving you can make is usually worth the wait.
Thursday, March 03, 2011
Take Advantage of the VA Home Loan Program
Taking advantage of your VA loan benefit is rather simple. First, you need to complete a Certificate of Eligibility (COE), a no nonsense form that ensures you meet the initial qualifications for the program. This form is available from VA-approved lenders and the VA website, and takes little time to complete.
The Department of Veterans Affairs may take several weeks to process your certificate whereas a VA-approved lender can get your COE processed in minutes. Using the Automated Certificate of Eligibility (ACE) system, lenders can get your COE online. Although the VA Home Loan program aims to abet all military personnel, not every service member qualifies. Military homebuyers who may qualify typically are in one of the three groups:
-Military members who served on active duty for 181 days during peacetime or 90 days during wartime.
-Members of the National Guard and Reserves who served for at least six years.
-Surviving spouses—who have not remarried—of a service member who died in the line of duty or because of a service-related injury.
Once you earn a VA loan, you’ll be entitled to its arsenal of benefits. Unlike conventional loans, VA loans in Massachusetts come with next-to-nothing down payments. Most VA loan borrowers pay nothing down, while the rest won’t be charged more than 5 percent down. Most of the time, military homebuyers say the tiny down payment is the program’s best perk.
Other advantages to the program save military homebuyers’ money in the long run, notably the negotiable interest rates. Since the VA backs up to 25 percent of each loan rather than issue them, VA-approved lenders lower the interest rates in return for assuming less risk. The program sweetens the deal for active-duty borrowers, who have interest rate caps.
Monthly savings further accrue because there is no private mortgage insurance in the VA Home Loan program. Also, closing costs are often lower than other loan types, and sellers may end up covering some of those costs.
Matt Polsky
Mortgage Commentator
mpolsky@vamortgagecenter.com
http://www.vamortgagecenter.

