If you’ve found the right home, how can you be certain you aren’t paying too much?  Once you make your choice, it’s quite likely you’ve also become well informed about property values.  How is this so?  Because before you made that choice, you probably looked at a variety of homes, possibly as many as six to twelve properties.  That’s called “comparison shopping.”

As you visited each home, you made value judgments based on size, features and amenities offered, as well as condition of the homes.  Without realizing it, you compared prices, looking for the greatest value for your dollar.

Nevertheless, another aspect of your purchase further protects you from purchasing an overpriced home.  Called an “appraisal,” it’s a required step in the mortgage approval process.  Your mortgage lender, who is putting up the majority share of the purchase price, also wants to be sure the home is not priced above the market.

Thus, the lender asks a licensed appraiser to determine the home’s value for the record.  If the appraised value does not at least meet the purchase price, the lender may not approve the loan or, at the very least, may ask for a higher down payment.  

As the buyer, however, it’s easy to spot the overpriced homes.  They are the ones that have been on the market for some time - but remain unsold.

For FREE information on buying a home, call us, stop by the office or if you prefer, email me at donkingsley@kingsleyrealestate.com.  I will be happy to provide you with the articles below to begin your search.  If you need help starting the process, call a REALTOR® from Don Kingsley Real Estate!

- Tax Benefits of Homeownership       - How Big of a Mortgage Can I Afford
- 6 Creative Ways to Afford a Home       - 10 Questions to Ask Your Lender

If you are a homeowner who can no longer make your monthly mortgage payments, you still have opportunities to avoid foreclosure and the damage it would do to your credit.  Although more complicated and more challenging, a “short sale” may prove to be the best alternative.

If you are unfamiliar with the term, a “short sale” can happen when your mortgage lender agrees to let you sell the home for less than you still owe on it, forgiving the difference.  Why would a lender settle for such a sale?  Quite simply, the lender may determine that they will still receive a higher amount of the remaining balance through a short sale than they would through the very costly and time-consuming process of foreclosure.

Why would a homeowner agree to sell the home for less than its value?  As already mentioned, a short sale keeps you out of foreclosure and reduces the damage to your credit (and subsequent ability to purchase another home).

In the middle is the real estate agent, helping the sellers, the lenders, and the buyers navigate the complexities of the transaction to reach a satisfactory conclusion for all involved.  Homeowners can trust their REALTOR to be honest and to provide a fair assessment of value for all parties.  You can trust your agent to be your advisor and champion during difficult times.

If you have questions regarding this process, please call a REALTOR® from Don Kingsley Real Estate.  We’ll help you determine which process may be right for you.  If you prefer, please feel free to email me at donkingsley@kingsleyrealestate.com.

If any of your friends or family have recently applied for a home loan, you’ve probably heard that lenders are nervous, with tough new rules and demands for stacks of paperwork.  Good mortgages are still out there, but you should be prepared before applying.

First, understand how your credit score impacts the interest rate charged on your loan.  If your score is 720 or higher on the scale of 850, you will qualify for the best rates.  If it’s between 700 and 719, you could expect 0.375% added to that rate, while a score between 680 and 699 might add 0.5%.

Next, determine how much you have available for down payment, and how that will affect your loan’s terms.  A “conforming loan” (that would be purchased by Fannie Mae or Freddie Mac) will require a minimum 10% down payment.

However, if you don’t have that much to put down, you can investigate a Federal Housing Administration (FHA) or Veterans Administration (VA) loan.  These government-backed loans are targeted towards those with lower credit scores and only require a 3.5% down payment. 

You can even use this year’s First Time Homebuyer Tax Credit to help pay closing costs, buy down the interest rate, or add to your minimum down payment.  Just have employment, banking and tax records organized, and be patient while overworked lenders review your application.

For help on where to begin, call a REALTOR® from Don Kingsley Real Estate and we will get you started on the path to homeownership!  If you prefer, email me at donkingsley@kingsleyrealestate.com.