One of the most difficult things for many a homeowner during the recession following the recent financial crisis is that through job loss, or through underemployment, foreclosure might be imminent. In order to help those who are in danger of foreclosure due to income loss, the government is offering the Emergency Homeowners’ Loan Program (EHLP). This program is limited, though. You only have until July 22 to get your preliminary application in, so you need to act fast!
You want to buy a home for less than market value, or do you want to own a second home and are looking for a deal? There are few active buyers in the real estate market nowadays but those who are seriously looking are considering short sales or foreclosures. If you are one of these people then what is better for you – a short-sale or a foreclosure?
Is a short-sale best?
Short sale signs are popping up everywhere yet many people do not know what this means. The seller who chooses a short sale is in a hurry to get out of their mortgage so the lender agrees to accept a mortgage payoff amount that’s less than what’s owed in order to help the seller get out fast. The lender ultimately forgives the remaining balance of the mortgage loan.
Many people who feel they are prepared to enter the real estate market by purchasing their first home have experienced a roadblock to good mortgage rates – their credit cards. Credit cards can play a positive, but also a negative role in the process of purchasing a home.
There is not a doubt that having a credit card can work highly in your favor when it comes time to shop around for your first home. If you have a consistent history of timely credit card payments this builds a strong credit rating. Having a high credit score not only will secure you a mortgage quickly, but one with very competitive rates.
Your credit card can be very influential when determining what mortgage you are seeking because the credit card payments are added to what the payments ‘would be’ on a possible mortgage to determine how much can be afforded.
For many of us who are mortgage holders from time-to-time we find ourselves asking, “When is a good time to refinance my mortgage?” Hardly a day goes by without noticing many lenders advertising tempting deals to entice you to refinance your mortgage. That temptation to refinance can be huge because depending on your situation, refinancing your mortgage can be beneficial in areas such as reducing the interest rate, shortening or extending the mortgage loan, and even by getting some extra cash flow happening by lowering the monthly mortgage payments. A word to the wise though, refinancing must be done with great caution because not every situation can have the desired benefits.
There’s been a movement the past couple of years to move to a smaller home in order to save money. It’s understandable with the economy the way it is and all. Still, many people look to the time when they can get a bigger home. Sometimes you just need more space. Some just want the bigger place. I still see homes being torn down and re-built into much larger houses. Thing is, when you buy a bigger house you aren’t just paying a bigger mortgage. With a bigger house comes some other expenses and costs that increase.
Some Ways You Will Pay More With a Bigger House:
It’s never too late to make some needed improvements to boost the efficiency of your home’s energy usage. For tax purposes, making a few around-the-house upgrades before the end of the year can contribute to a larger tax refund.
Not only will you be more energy resourceful, but you will save money in the long term, and the IRS will recognize these efforts by rolling out some energy credits to assist you with the costs.
There are two main types of credits available. The most common credit is money that you can get back for conventional home usage improvements, such as energy efficient windows and doors. The second type of credit targets alternative energy investments, such as solar or wind powered additions.
When you are purchasing a new home one of the terms you are going to come to know is mortgage escrow account.
“But what is a mortgage escrow account? What’s the purpose of it when owning a home?,” you may be thinking to yourself.
Before we get into what a mortgage escrow account is let’s look at what escrow, in general, is…
Basic Concept of Escrow
Escrow is widely used in many business transactions where the buyer and seller cannot make a simultaneous exchange of money and goods or services and neither would want to deliver first without the guarantee to receive later (neither party wants to risk being the one left without the dough).
To resolve the trust issue between a buyer and seller, a third party, known as the escrow, can work on behalf both the buyer and the seller to ensure that once a party fulfills its contractual obligation, the escrow will release to the party what it entitles from the transaction.
Such escrow service is also standard practice in real estate transactions where the buyer deposits money with the escrow and the seller delivers title documents to the escrow, and the escrow firm will not release the funds to the seller or convey the title to the buyer until both the funds and the documents are placed with the escrow.