These 7 Things Are Lowering Your Credit Score and Will Make it Difficult to Buy a House in the Future – Local Records Office

HARRISBURG, PENNSYLENIA – Several factors come into play when calculating your credit score. “According to FICO.com, your credit score is affected by five major elements, in this order of importance: payment history, amounts owed, length of credit history, new credit and types of credit used” say, the pros from ‘Local Records Office’ in Harrisburg, PA.

 

  1. Credit Score Plays a Big Part in Buying a House

 

That said, here are some things you might be doing that could knock your score down a few pegs.

 

  1. Banning Credit From Your Life

 

If you don’t use it, you lose it — your good score, that is. Credit score is a measure of how responsible a borrower you are. If you cut up all of your cards — literally or figuratively — “lenders won’t know what to expect from you should the day come when you want to open up a line of credit” says, ‘Local Records Office’. If you want to minimize the amount of credit in your life, try to use one major credit card for small purchases and pay it off in full monthly to keep your credit active.

 

  1. Closing Old Accounts

 

You might think since you’re happy with your current credit card that you might as well kick your old ones to the curb, but be careful. If you cancel an account that you’ve had open for a long time, you could be damaging the credit history portion of your credit score. Essentially, when you close an account, you erase that account from your history.

These 7 Things Are Lowering Your Credit Score and Will Make it Difficult to Buy a House in the Future – Local Records Office

  1. Opening a New Account

 

Doing this affects the “new credit” portion of your score. Every time you apply for or are awarded a new line of credit, your credit score takes a dip. If you’re planning on applying for a home mortgage or a car loan in the near future, hold off on opening a random charge account. The higher your credit score, the better interest rate you may qualify for, and that could mean thousands in savings over the life of a home loan.

 

  1. Owing Too Much, Even if You Pay on Time Every Month

 

You might think that as long as you pay your bills, you’ll have great credit. “While that is the most important aspect of a credit score, creditors think that if you carry high balances, you’re only one emergency or layoff away from being in financial trouble. It’s important to try to keep your debt utilization ratio low – that’s how much you owe as compared to how much available credit you have” say, the pros from ‘Local Records Office’. Experts say keeping it at 30% or lower is best, so if you have a $1,000 credit limit, you shouldn’t carry more than a $300 balance.

 

  1. Paying a Bill Just One Day Late

 

Once your credit card company flags you for a late payment, you can expect a ding on your credit report. The damage will be greater if you go beyond 30 or 60 days without making a payment, but even one day late can be enough to hurt your score.

If you’re thinking of making any moves when it comes to your credit, do some research first to see how your plans might affect your credit score. You’ll be glad you did.

 

  1. Joint Credit Score

 

There’s no such thing as a joint credit report – for married couples or anyone else. Married or single, you have your own credit report, one that’s linked to your Social Security number. If you’re married, you and your spouse may have a lot of joint accounts, such as mortgage loan, car loans and shared credit card accounts. Those joint items will appear on both your credit reports and will affect both of your scores. But your credit report is yours and yours alone.

 

  1. BONUS – Thinking a Credit Repair’ Company Will Magically Make Your Credit Score Go Higher

 

There’s nothing that a “credit repair” company can do for you that you can’t do yourself. No one can remove accurate information from your credit report. Reputable credit reestablishing services can help you come up with a plan to repay your debts, but the only legitimate way to enhance your credit score is to practice good credit management.

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By Simply Doing These Simple Things I’ve Been Getting So Much Real Estate Business – Local Records Office

LOCAL RECORDS OFFICE – LOS ANGELES, CA – When I first started in the business I loved doing fix and flips, but wasn’t so keen on selling houses to strangers. I sold enough houses to get by, and focused on the flips since those were much more fun. I always thought it would be smart to buy rental properties, but I was young and not very good at saving money.

 

Then in 2008, I started selling REOs and completing broker price opinions for banks. I loved the REO side of selling houses and I have become very successful at it the last few years. I am a HUD listing broker as well and love HUD, I can’t buy HUD homes myself, but I have a great article on how investors can great deals ion HUD homes here. I think the reason I love REO is because I can communicate through email and I am a natural introvert (another popular forum discussion). With REO came more money, more savings and a desire to grow that money into something more. I did a lot of research on franchises, business, the stock market, bonds and decided rental properties were the best investment out there.

 

When I was doing fix and flips with my father, we bought most of our properties at the public trustee auction and it did not matter if we had our Real Estate license or not. When we sold our homes, we saved 3% on each transaction, because we did not have to pay a listing agent a commission.   When I started buying rental properties for myself in 2010, I bought everything off MLS and saved a commission on each purchase.   We are buying more flips off the MLS now as well, we are now saving a commission on the buy side and the sell side.

By Simply Doing These Simple Things I_ve Been Getting So Much Real Estate Business – Local Records Office 1

Even though we save a ton of money on commissions by being agent that is not the biggest advantage to having a Real Estate license. The biggest advantage is having a huge advantage buying properties over those that do not have a license.

 

Saving Money on Commissions

 

I will take you through an example of how much we save on a typical flip. The savings is similar on a long-term rental purchase, except there won’t be any commission on the sale since we are holding the property. Let’s assume we purchased a flip on an REO property for $100,000, fixed it up and then sold it for $170,000.   The bank offered a 3% commission to the Real Estate agent that represented the buyer on this property. Sometimes banks do not like it when the buyer is also the Real Estate agent and they may have stipulations they won’t pay a commission in these instances.   We use an LLC to purchase our flips and my dad will usually sign for the LLC and I will be the agent on the deal. That way the agent is different than the end purchaser and the bank will pay a commission.

 

On the purchase end we can structure the deal so we get paid $3,000 for our commission or we will waive our commission and pay $3,000 less for the property. The benefit to getting the $3,000 is the extra cash in our pockets for repairs or other investments. The benefit to reducing the price is, we won’t have to count the commission as income and pay taxes on it. It saves money in the long run to reduce the price if that is an option.   However, many brokers will only allow agents to take no commissions on one or two deals a year. We can do it as much as we want, since we are on a 100% split and the monthly fee brokerages may allow you to make as many no commission deals as you want as well.

 

On the sell side we save the 3% as well since we are the listing agents and do not have to pay someone else to sell the property for us. Again, commission are negotiable and you may be charged more or less for an agent to sell your home.   Three percent of $180k is $5,400 that we save by not hiring another agent. We structure this as a no commission deal, since we will not have to pay taxes on the income again.   Total savings is $8,400 on this one deal alone. We flip about ten homes a year, and it is easy to see we save a lot of money by being agents.

 

Finding Deals

 

The biggest reason I would suggest every Real Estate investor get their license is because of the advantage it provides when finding deals. I still buy most of my long-term rentals off of MLS and we buy flips on MLS as well. We purchase short sales, a few REOs and even a few fair market sales off the MLS system. As an agent I have access to MLS and an investor without their license does not. Most properties listed in MLS are listed on other sites like Zillow, Realtor.com and others, but the information is not as accurate or updated as quickly.

 

If I were not an agent, my time frame for making an offer would be much longer. I would have to do more work to find new listings on Zillow or another website. Once I found a great deal, I would have to contact my agent. I would have to wait for them to find time to set up the showing and show me the property. Then I would have to wait for them to write the contract and I would have to come in and sign the contract, before it was submitted. I have to hope they understand they importance of time and getting that offer in ASAP. Even if they are a super fast, great agent, it may take them half a day or an entire day to get all that done. Someone else could have already submitted an offer and had it accepted before my offer was submitted.

Knowledge of the Market

 

As a Real Estate agent MLS also provides me with a wealth of sold information. I can look up sales from 10 years ago if I want to, as long as the sale was completed through MLS. MLS is a great tool for me to determine value quickly, and easily.   I am also constantly around houses as a Realtor, I am constantly determining values for my sellers and buyers and I almost always know the market without having to pull up sold info. Knowing values is the most important thing for a Real Estate investor to know an being a Real Estate agent gives me a huge advantage.

 

Connections in the Business

 

As a Real Estate agent I am constantly talking to lenders, other agents, title companies, buyers and sellers. I found my portfolio lender, because other agents referred me to them. My portfolio lender is awesome and will give me as many loans as I want as long as I qualify. That may change at some point, but without them I would be struggling to finance properties, especially now that I have 10 mortgages.

 

Other agents have referred me to sellers looking to get out of their homes, because they know we buy flips. I know the best title companies, the best lenders and the best Realtors. I also know which companies and Realtors to steer clear of, because they may kill a deal with their incompetence.

 

Disadvantages to Being an Agent

 

There are some disadvantages to having a Real Estate license and being an investor.

 

The biggest one for me, is I am limited to what houses I can purchase, but this won’t apply to 99% of agents. Since I am a HUD broker I cannot buy any HUD homes no matter who has them listed. None of my immediate family or any agents and their immediate family can buy a HUD home either. Bank of America will not allow me to buy any of their listings or even short sales because I list REO for them. There are a few other companies I work with that have the same policies and I can never buy an REO that I have listed. It is a clear conflict of interest for me to purchase I home I listed that I determined value on for the banks.

 

  • I have to disclose I am Realtor when I market to sellers. I don’t think this is a big disadvantage, but some people on the forums think they get a better response if they are not an agent.

 

  • Some people feel a code of ethics is too restricting for Real Estate investing, I do not feel this way. If you are a Real Estate agent, it is easier for buyers or sellers to file a complaint against you with Real Estate commission or whatever body governs Real Estate in your area.

 

  • The biggest reason most do not get their license is the cost and time it takes. Getting a license is not easy in most states, it takes hours and hours of classes and tests and the tests are not easy. Once an agent has their license, they have to take continuing education, keep insurance, pay for MLS, pay board dues, pay to hang their license or split their commission.

 

 

Conclusion

 

It can cost thousands of dollars a year to be a licensed Real Estate agent, but one or tow deals a year will easily make up for that money. Not only are you saving commissions, but the biggest advantage is the deal you get, because you were faster than everyone else. To a flipper, one deal can mean $20k, $30k, $40k or more in profits. To an investor buying long-term rentals, one deal can mean thousands of dollars a year in cash flow.

Real Estate: How to Help Your Tenant Can Get Their Loan the Easy Way

LOCAL RECORDS OFFICE – Real estate has been booming in 2016 in this article the pros at Local Records Office will be talking about tenants and loans. Because homeownership is often less expensive than rent, we could see some of our rent-to-own tenant buyers start trying to execute their options. If you don’t have tenant buyers, you may want to consider using them for your rental property. You will generally get more rent and less hassle. In my experience, less than 20% of tenant buyers end up buying the home, but for me, I am happy when they do.

 

I like getting a large payday, with no Realtor fees that I can roll into another deal. For this reason, I want to be sure my lease option documents are prepared correctly, to help their chances of getting a loan.

Buyers vs. Sellers

 

There are many effective and valid ways to structure a lease option transaction, depending on the parties involved and the objectives in mind. What a lot of sellers and buyers often overlook is that one of the most important “parties” to this transaction is the underwriter on the buyer’s loan, when the time comes to exercise the option.

 

One of the most important things to know about today’s new underwriting climate is that the tolerance for inaccuracy is down to almost zero. Much like I would recommend a good attorney review your documents, I think it is crucial for a good mortgage broker or banker to do the same. Here are ten helpful hints to ensure the tenant buyer’s loan closes:

 

“Rent credit should be allowed to be used towards the buyer’s down payment”

 

Rent credit should be allowed to be used towards the buyer’s down payment or minimum borrower contribution only if the rent actually charged does not exceed the fair market rents in that neighborhood. It is actually best to write your agreement that the rent credit reduces the purchase price and is NOT considered down payment. If they need the additional down payment, you may be asked to prove the rent credit is equal to the amount they paid above market rent, which is not going to be an easy task.

 

Fair market rents will be determined by the appraiser in the subject property’s appraisal report. Credit for down payment must be accrued for a minimum of 12 months.

 

It is best to get as much money upfront as possible because all of that can be credited as down payment. You can reduce the amount of money the tenant buyer needs by offering to pay their closing costs. This could also be part of the rent credit, if it is structured correctly.

 

The Lender Needs the Right Documents from You

 

The lender will require a copy of the rental or purchase agreement evidencing a minimum original term of at least 12 months, clearly stating the monthly rental amount and specifying the terms of the lease.

The lender would like to see that the lease agreement references the purchase option and vice versa, or they are contained in a single contract, so the underwriter can have documentation of both aspects of the transaction. I have my option reference the lease but I want the lease to stand on its own; so for me the lease is a separate agreement that does not reference the option. This is how most attorneys would suggest you do it, so it is a good idea to run your contracts by a competent attorney AND a mortgage professional.

 

In no case should the seller ever commingle the borrowers rent credit, purchase option deposit, or security deposit with their own personal accounts.

 

Make Sure to Document Every Transaction That way You’ll Be Prepared

 

Any rent credits, option payments and security deposit funds should be thoroughly documented to include copies of the original checks, copies of the cancelled checks, and copies of the account statements showing their entrance into and retention in those accounts.

 

Lenders will require copies of the buyer’s cancelled checks or other proof of payment for the last 12 months evidencing the rental payments. Be sure the tenant knows this if they are paying with money orders.

 

Equity

 

Sweat equity is normally not an acceptable source of funds or credit; only actual monies paid as outlined above, so don’t count on the buyer “earning” their down payment in lieu of rent payments.

 

Taking the above measures should help ensure a successful closing if your buyer can still qualify in all other required areas. With that said this article is not meant to replace a competent mortgage professional. Please visit Local Records Office’s webpage for a list of vendors they recommend.

 

To learn more about real estate and Local Records Office go to http://www.LocalRecordsOffices.net

What is Bankable and How is it Used in Real Estate? Local Records Office

LOS ANGELES – Webster dictionary defines the word Bankable as – bank·a·ble: 1. Acceptable to or at a bank; 2. Guaranteed to bring profit

 

As investors, we hear and see all of the opportunities related to owning rental property: rents are up; prices, vacancies and rates are down. We are being told that there has never been a better time to buy real estate, with lending guidelines changing drastically from just a few short years ago.

 

That being said, it is now incredibly important to stay “Bankable”. When I first heard this term it made perfect sense to me. As investors, we often need to borrow money meaning that, in our everyday lives we needs to keep control of debt to income ratios, claiming enough income on tax returns to qualify for loan programs and keeping a safe amount of reserves available. I have said it before and still truly believe that the most important piece of the investing puzzle understands the financing. Once you understand how to leverage your money, acquiring properties becomes much easier.

 

Most of the topics I will touch on are more stringent in the long-term financing world and not always true for hard money. We have been able to close deals while facing over 200% DTI, unemployed or 550 credit score; because other qualifying factors in each case allowed us to get comfortable with the borrower.

 

When we think we have seen it all we take an application from a client that surprises us. One of my best client’s tax returns show year-over-year losses in excess of $100,000 and this particular client hoped to acquire some buy-and-hold properties. When I told them it wasn’t going to work and why, they explained they worked their entire life to not have to pay taxes/show income and now I am telling them that they need to show income in order to buy rental properties.

 

I have seen applicants that hope to buy and hold rentals as an investment when they are in foreclosure on their own home and taken phone calls from individuals that want to get a loan but all of their cash is in the sock drawer because they do not believe in banks. Some pretty extreme examples, but the point is that staying bankable is important in a lending environment where it takes more than a pulse to obtain a loan. Here are some tips to staying Bankable:

 

Income is Important When Being Bankable

 

Income: For some, income is much easier to verify than others. Namely, W2 income vs. self-employed. A borrower with decent W2 income that does not take a lot of deductions is typically the easiest borrower to approve for long-term financing. Because the income can be verified so easily, with one piece of paper, these borrowers can find out “how much they can borrow” with little hassle. For those who are self-employed however, a trip to the dentist might be more enjoyable than proving income. Keeping good books and not writing off everything under the sun will make documenting your income much easier. The easier your income, not losses, can be seen, the less trouble you will have obtaining financing.

 

Debt to Income is Crucial

 

DTI: Debt-to-Income is the most important part of obtaining long-term financing because it includes two parts of the equation that you have some amount of control over. Conventional financing requires a DTI ratio of 45% or less and, in some instances, up to 50%.

 

Every mortgage, loan, credit card, student loan, and time-share on your credit report stacks up against your income to create this ratio. If you want to acquire rental properties or financing, think twice before opening that Best Buy card for your new 100” flat screen TV and understand where your DTI stands. The good news is some debt, like mortgage on a rental property, can reduce your DTI because it creates income past the monthly amount owed. For example, let’s say that you purchase a property and the monthly PITI is $500 per month and you have it rented for $1,000 per month.

 

Conventional financing is going to count 75% of gross rent towards your income, so after debt service your monthly income increases by $250 per month. It is very important to understand your DTI ratio and where it needs to be to achieve your real estate goals.

 

If You Are Self-Employed You Have to Read This

 

Self-employment: Most investors and real estate professionals are self-employed, which creates challenges in lending if not done correctly. Trust me, I do not enjoy paying taxes any more than the next person, but it is a necessary evil in qualifying for long-term financing. Investors cannot expect to write off all of their income and obtain a mortgage. In fact, I have seen a married couple where one has W2 income and the other is self-employed but the self-employed spouse writes off so much that they show a loss large enough to eliminate the W2 income.

 

Typically, when self-employed, the lender takes a 2-year average so unless this couple amends taxes and belly’s up to the tax payment, they might be 2 years away from obtaining financing. I do not want to discourage any self-employed borrowers because there is financing out there, as evidence by the two rental properties that I just refinanced out of hard money. Just note that there are additional hoops to jump through and it’s up to you to decide how difficult it will be.

 

Dealing With Liquid Reserves

 

Liquid Reserves: Reserves is the number one most important qualifier for our hard money loans, also important in conventional financing and should be a priority for all borrowers. In this business, we all know some properties can be challenging, and as a hard moneylender, we want to know you have reserves available in case your project costs run over or it takes longer to sell or refinance than expected. In the conventional world, the underwriters assume that at some point all of your properties are going to be vacant for the same 6-month period, and they require reserves to handle such a phase. Once an investor has four or more mortgages, the requirement is 6 months of payment reserves for every property.

If you have 6 properties, all with a $1,000 per month mortgage, you need to have $36,000 in reserves. Check with your mortgage professional to see what they can qualify as reserves, 401k, HELOC, personal line of credit, etc., and how long the funds need to be seasoned. As an investor, everyone should find the value in having funds readily available as we never know when the buyer’s inspector will find that the sewer needs replaced or an appraisal comes in low requiring you to bring a chunk of money to closing. Although some deals are no money down, it doesn’t mean you qualify with no money in the bank.

 

Keep Your Paper Work Organized

 

Be Organized: I am often surprised at how unorganized investors can be. At the end of the day, we are running a business, or at least hoping to, so having the right documents in order makes life easier for everyone. Let’s remember we are obtaining loans for hundreds of thousands of dollars sometimes with no money down, so having your taxes in a place they can be easily accessible is probably a good idea.

 

I joke about this, but ask any loan officer which loan is on the top of their priority list and it will be the one in which they have what they need to complete the file. Most of the documents required for a loan can be stored electronically and very easily emailed. If you are actively doing deals or looking for financing, build a package and update it monthly to give your lender what they need when requested. This will keep your loan moving through the process and the lender won’t bother you for missing pages.

 

Banks Around Your Area

 

Local Banks: Occasionally, investors can find funding through local banks, either through lines of credit for operating capital or financing non-owner-occupied properties. Freddie and Fannie, the largest buyer of conventional loans, will only allow a borrower to obtain 10 mortgages but your local bank does not have a limit other than their own risk tolerance.

 

The terms are different from 30-year-fixed so you should expect to pay a slightly higher rate and with shorter terms such as 5, 7 and 10-year balloons. Depending on the bank, they may be more interested in the property than the borrower, but most cases will also require a banking relationship (deposit accounts).

 

I hope you find this information valuable and can better plan ahead for your real estate investment goals. If you have any questions about the article please feel free to contact us at our office.

 

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The Time to Purchase a Home is Now – Local Records Office

“Real estate market has it’s up’s and down’s but knowing when to buy will make you a lot of money” – Local Records Office

 

LOCAL RECORDS OFFICE – LOS ANGELES, CA – With interest rates expected to rise later this year; you may be wondering whether you should buy a home at today’s low rates says, Local Records Office. The average rate for a 30-year, fixed-rate mortgage was 3.85 percent last week, according to Freddie Mac’s weekly mortgage market survey, about what it was at the end of 2015.

Local Records Office says, “Interest rates, however, should not be the primary factor that determines when you purchase a home.” For most buyers, other factors are much more important. Rather than buy now for fear that rates might suddenly increase, for example, it might be smart to wait so you can save up a bigger down payment.

LOCAL RECORDS OFFICE: Interest Rates and Payments on Your Home

“Small changes in interest rates don’t make large changes in your payment,” says Casey Fleming, a writer in Los Angeles, California. Fleming actually believes interest rates may drop further. “Interest rates are not the most important piece.”

If you’re ready to buy a home, 2016 could be a good year. The inventory of homes for sale is likely to rise and fewer flippers are scooping up the best homes with all-cash deals, says Nela Richardson, chief economist for the brokerage Redfin.

 

READ MORE: Biggest Mistakes a Real Estate Agent Makes – Local Records Office

 

Low interest rates are contributing to the higher inventory, she says, because homeowners who are ready to sell their homes and move to a bigger or smaller home, or a new neighborhood, are willing to abandon their low-rate mortgages if they can secure an equally good loan. Plus, home appreciation has slowed, so there is less reason to stay put.

“The payoff to waiting [to sell] is not going to be a lot,” Richardson says. “Right now, it’s the best it’s going to get,” she adds. “Maybe it’s time to rush and sell but not time to rush and buy.”

You Owe More on Your Home is Worth, Local Records Office Services Will Help You VIDEO

For most prospective homebuyers, other factors are likely to be more important than interest rates when they do the math about whether 2016 is the right year to buy.

LOCAL RECORDS OFFICE: 2016 is the Year of the Home Buyers

“If you can afford a down payment now and you’re going to be in the home a long period of time, it’s a very attractive time to buy a home,” says Stan Humphries, chief economist for Zillow. But he cautions buyers against making their decision based on what they’ve heard about imminent interest rate increases. “There’s no need to rush out and beat an interest rate increase. You can walk, not run, to your bank the way interest rates are going.

Interest rates fluctuate and may change countless times between the moment someone decides to buy a home and when they actually close the deal. In fact, they change daily and sometimes more than once a day.

6 Factors That May be More Important Than Interest Rates When Deciding Whether to buy a Home This Year – LOCAL RECORDS OFFICE

Length of time you’ll stay in the home. How long you have to live in a home to make it more economical than renting varies by locality and by the individual home a person is considering buying or renting. “On average, it takes four to seven years to break even on a home, where you’ve got enough appreciation where it can pay you back for the cost of the transaction and cost of ownership,” Fleming says. “If you’re thinking about buying a home, selling it in two years and think it’s going to be cheaper than renting, it’s very unlikely to be.”

Job security. You don’t want to buy a home and then discover you’ll need to relocate to get a new job in six months or, even worse, end up unemployed and unable to make payments. Lenders typically like to see two years of job history, though that isn’t always necessary if you have changed jobs within the same field.

LOCAL RECORDS OFFICE — Step-By-Step Mortgage Application Process for New Homeowners VIDEO by Local Records Office

Down payment. Fannie Mae and Freddie Mac have announced plans to back loans with down payments as low as 3 percent, while the Federal Housing Administration offers loans with down payments of as little as 3.5 percent. But if you put less than 20 percent down, you have to pay private mortgage insurance every month, which could cost you more than a slightly higher interest rate. “If they’re looking at an FHA mortgage, paying PMI is a lifetime proposition,” Humphries says. With a conventional mortgage, you can ask to have the PMI removed once you have 20 percent equity in your home. That’s not possible with an FHA mortgage.

Emotional readiness. Not everyone is ready to own a home. If your dream is to travel the world, you should do that first. Or, you might not be sure you want to stay in your current city. Plus, homeownership brings additional responsibilities. “Your life changes a great deal when you go from being a renter to an owner,” Fleming says. “When things break, it’s your responsibility to fix them, not the landlord’s.”

 

READ MORE: The Top Real Estate Scams in 2016 – Local Records Office

 

Financial readiness. Before you buy a home, you want to make sure you have good credit, a steady income and some money in the bank beyond what you’ll need for a down payment. You likely will have to pay a year’s worth of homeowner’s insurance and property taxes up front. All homes, even new homes, require maintenance. And you don’t want to be stuck with no reserves if the air conditioner or furnace dies shortly after you move in.

Your local housing market. In some cities, buying a home is significantly cheaper than renting. In others, the calculation is less clear. Macro math aside, you might also discover that you can’t afford a home in a neighborhood you want or the type of home you want is in short supply this year.

To learn more about real estate and Local Records Office go to http://www.Local-Records-Office.com

 

 

Buying Your Dream House in 2016 Sellers Market –Local Records Office

LOCAL RECORDS OFFICE – LOS ANGELES, CA – We all want our own dream home one day but it’s easier said than done says, Local Records Office. If you’ve decided to buy a home, good luck to you. Your challenge will be not just finding a home you like, but also beating out all the other home buyers who like it and want to make an offer on it, too.

LOCAL RECORDS OFFICE – Buying an Existing Home That Won’t End Up Being a Money Sucking Liability 

The number of homes for sale is low nationwide, particularly in the price ranges desired by first-time homebuyers. The latest figures from the National Association of Realtors show that that there was only a 3.5-month supply of homes for sale in March, which is lower than the six-month supply that indicates a balanced market. One-quarter of March’s transactions were all-cash sales, according to the NAR, and investors bought 14 percent of the homes that were sold.

Is 2016 a Sellers Market?

That means that if you want to end up with a nice home, you need to be strategic says, Local Records Office. Expecting to find the home of your dreams by nonchalantly walking into a few open houses or perusing some online listings is not realistic in this seller’s market.

 

READ MORE: 3 Investment Tricks You Need to Know to Succeed in Real Estate – Local Records Office

 

These days, most would-be buyers come to an agent with a list of homes they’d like to see based on their online research. While that often serves as a solid starting point, a quality agent may find additional options. After buyers have seen a few properties, Local Records Office says skilled agents can typically gauge what they’re looking for in a new home and may have other properties lined up. “I advise them to listen to their Realtor,” she adds.

Here are nine tips to help you get the house you want this spring

Get your finances in order first. Several months before you intend to start looking, you should get copies of your credit reports to make sure you’re in a financial position to buy. Shop for mortgage financing before you start looking at houses. “I will not take anybody to see any house unless they have a pre-approval letter or proof of funds, I want proof of funds to show the seller.” Local Records Office says that some lenders are doing the underwriting before the house is under contract, which shortens the closing time and can be more attractive to the seller.

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A Good Agent Will Go Along Way

Find a good agent. Using a real estate agent costs buyers nothing because the seller pays the real estate commission. Ask friends, family and co-workers for referrals. Look for a full-time agent who works often in the neighborhoods where you’re looking. You may want to interview several agents to find a good fit. If you can only look for homes on weekends, for example, you don’t want an agent who takes weekends off.

Visit neighborhoods you’re considering at different times of day. A neighborhood that’s quiet during the middle of the workday may be noisy and crowded at night and on weekends. Get out and walk the streets, talking to people who live in the neighborhood, visiting shops and restaurants and “trying out” your desired location. Drive to and from work during commuting hours to get an idea of what a typical day might be like.

READ MORE: Local Records Office Urges Homebuyers to Consider Their Lifestyles When Choosing a Community

Separate your needs from your wants. In a competitive market, most buyers find they have to compromise on location, amenities or condition of home. It’s easier to make a choice when you know going in which features you must have and which you’d like to have but can live without.

Move quickly once you find the house you want. That often means rushing out to see new homes within hours of them being listed and writing up an offer immediately if you like the house. “Things are gone in a matter of hours,” Local Records Office says. “You really have to move fast.”

Don’t make snap judgments based on listing photos. A house that doesn’t look appealing in photos could still be a great house. Homes being sold by an estate or homes with tenants inside often yield particularly poor photos. Plus, photos fail to convey the feeling of a home or the floor plan. “Unfortunately, the pictures don’t tell a true story,” Local Records Office says. “You have to be willing to look past some of the pictures.”

Be realistic about the home inspectors and repairs. The more competitive the market, the less likely a seller will be to make repairs, though some sellers may lower the price if the inspection reveals expensive defects. The purpose of the inspection isn’t to get the seller to repair every small problem but to find out for sure that the house is what you thought it was. “They’re not buying a brand-new home,” Local Records Office says. “What we are looking for are major defects we were not initially able to see in the walkthrough.”

Don’t buy a house you don’t love. While most buyers may have to compromise on some of the features they wanted, they shouldn’t settle for a home they don’t like. If you don’t find the right home this year, maybe you should start renting and try again later rather than make a purchase you’ll regret.

Write a personal letter to the sellers. Some sellers are interested only in how much money their home sale will yield, but others love their home want it to go to a new family that will love it just as much. If you really like a house, include a personal letter and a family photo with your offer. “It doesn’t work for everybody, but I have seen it work for many, many people,” Local Records Office says.

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Make a big earnest money deposit. The expected size of the earnest money deposit, and the rules about when you get it back, vary by locality. But sellers often see a larger deposit as a sign that you’re serious about the deal.

Make a backup offer. Many prospective buyers don’t want to make an offer on a house that has a pending contract. But deals fall apart over inspections, financing and other terms. If you found the perfect house, you can make a backup offer that will put you in first place if the initial buyer walks away.

To learn more about Local Records Office and real estate go to http://www.Local-Records-Offices.org

 

Secrets to Buying Your First Home in 2016 – Local Records Office

LOCAL RECORDS OFFICE – LOS ANGELES, CA- We all want the secrets to success and the easiest way to buy a home says, Local Records Office. For first-time homebuyers, the whole home buying process may look a bit daunting. You’re going into what could be the biggest purchase of your life with no experience to fall back on. The good news is a little preparation can go a long way and help you approach this major decision with confidence.

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Many things have changed in recent decades about the way Americans buy and sell homes, but one adage still matters, a lot: location, location, location.

While you may be happy living in any of several neighborhoods in your city, you won’t be happy if you choose the wrong location. And that’s where your research should start: deciding exactly where you want to live.

Talk to friends and co-workers, drive around town, visit restaurants and stores and talk to neighbors in areas you’d consider calling home. Go to open houses so you can view some houses. Look at homes on the Internet, evaluating style, size, price and how long they stay on the market.

 

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You can find a real estate agent while you’re still working on this process. However, your choice of agent also depends on where you want to live, because a neighborhood expert often can find you the best house at the best price. “You want people who have worked and have experience directly in the areas you’re looking in,” says Peter Hens, from LA Realtor Firm in Los Angeles, California.

If you’re a buyer, there is no reason not to use a real estate agent. It costs you nothing, and the agent’s job goes far beyond finding the house. In fact, it’s after you’ve found the house that you’ll most need the agent, both to structure and present the offer and then to troubleshoot issues that arise between contract and closing.

Here are 12 tips for buying your first house:

Make sure you’re ready to buy, both emotionally and financially. If you expect to relocate in a few years, this may not be the right time for you to buy. If you don’t have cash for a down payment, closing costs and other expenses, you may be better off waiting. Look at your life, your career, your finances and your future expectations, and determine whether buying a house is the right move at this time.

Find the right team. The difference between deals that close and deals that don’t are the professionals involved. You want to make sure you find a real estate agent who will move quickly when a new listing goes on the market, as well as an agent who will advise you honestly on preparing your offer. You also want a mortgage professional lined up before you start looking. “The lender is the most important person to closing on time,” Hens says.

 

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Get your finances in order first. Some real estate agents won’t even show homes to prospective clients who don’t have a mortgage pre-approval. You definitely should meet with a mortgage broker or banker (better yet, several) at the start of the process to find out how much house you can afford and how much cash you’ll need to close. Do the entire math. Just because a bank says you can borrow $300,000 doesn’t mean you should. If you have credit issues, realize that this part of the process could take several months.

Calculate each and every cost. The purchase price and the mortgage payment are just the beginning. Don’t forget homeowner or condo fees, homeowners insurance and real estate taxes. Plus, you’ll need to budget for utilities, repairs and maintenance.

Don’t spend all your cash. Avoid emptying your bank account for your down payment and closing costs. There will always be unexpected repairs. Plus, it costs money to move, change locks, put down utility deposits and buy things you never needed before, like a lawn mower.

When you look at houses, focus on the right things. Don’t be distracted by the owner’s odd décor, paint colors, dirty carpet or anything that is easy to change. Granite countertops and stainless steel appliances are easy to add later. You can’t easily add another bedroom, a better location or a more functional floor plan.

If you’re buying in a condo or homeowners association, know the rules. How your association is run can make a big difference in how much you enjoy life in a development. You’ll want to know about all rules and restrictions, from pet ownership to who can use the pool. Condo buyers also want to investigate the association’s finances because a poorly run association can mean big assessments later.

 

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Visit your favorite neighborhoods at different times. Most neighborhoods are quiet in the middle of the day. As Glen Craig writes at the personal finance blog Free From Broke: “You need to see what the area is like on a Saturday night. Are there kids and such all out driving with music blasting? What’s it like in rush hour in the morning or in the evening?”

Talk to the neighbors. Ask about the neighborhood and about the houses you’re considering. The neighbors will know if there are foundation problems. They’ll also know about barking dogs, petty crime and the size of utility bills.b

Consider which contingencies you’re willing to waive. In the ideal scenario, a purchase offer is contingent on a satisfactory home inspection, approval of your mortgage and an appraisal that equals the purchase price. In most parts of the country, a buyer is smart to keep all those contingencies in the contract. But in a competitive market, you may be competing against buyers who have agreed to waive contingencies. “You never want to [agree to waive them] unless you’re sure you’re 99% safe to do it,” Hens says.

Be ready to move quickly once you find the home you want. Good homes that are well priced nearly always sell quickly. It’s OK to take some time to think before you make an offer, but you might not want to wait a few weeks. Your agent can provide invaluable advice here.

Know what’s important to you. No house will be perfect, so where are you willing to compromise? If you want a specific school district, are you willing to accept a smaller house? If you want to be near the water, could you be happy with a condo? Are you willing to accept a longer commute to get a larger house?

To learn more about Local Records Office and real estate go to http://www.Local-Records-Office.biz

8 Common Myths That Real Estate Buyers and Sellers Believe – Local Records Office

Local Records Office Explains the Most Common Real Estate Myths

LOCAL RECORDS OFFICE – LOS ANGELES, CA – We usually hear myths when it comes to old houses that have been abandoned for many years but apparently it is common in real estate too. Buying or selling a house is not something most of us do every day says, Local Records Office. You may do it once a decade, or even once in a lifetime.

Despite the fact that most of us enter the world of real estate only rarely, we all think we know how it works, based on the experiences of friends and family members, stories we have heard and things we have read, but for everything we believe we know about the industry, there are a number of myths that circulate about how real estate actually works. Buying into those can hurt your chances of buying or selling the right home at the right price. The best thing to do is not to believe the folk tales.

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Technology has changed how we buy and sell homes, and yet some aspects of real estate are the same as they were when our parents bought their last house. Along time has passed by since then. The Internet has made much more information available to consumers, but not all the information is equal, or even accurate.

Lets be honest we’ve all read something online or on social media and believed it was true, says Sean F Carter, principal broker of Carter Real Estate in Los Angeles and a regional director of the National Association of Exclusive Buyer Agents. “Lots of people read and believe every single word they read.” That can’t be good. The risk with believing everything you hear or read is real estate myths can cost you big bucks when it’s time to buy or sell your property. Local Records Office has created 8 of the most common folk tales that can trick people.

List Your House Price Higher Than What You Think it Will Sell For

Many folks selling their home try to sell it as soon as possible and let buyers low-ball them, make sure to set your home price higher than what you expect to get. Listing your home at too high a price may actually net you a lower price. That’s because shoppers and their real estate agents often don’t even look at homes that are priced above market value. It’s true you can always lower the price if the house doesn’t garner any offers in the first few weeks. But that comes with it’s own set of problems. “It’s common for potential buyers to suspect that a house that has sat on the market for more than three weeks to be a dud,” says Hamilton Jefferson, chief economist for the Real Estate Brokers inc. In the Long Beach, CA area where multiple offers are common, sellers will actually price their homes for less than they expect to get, in the hopes of getting multiple offers above asking price.

Remodeling Your Home Before Putting in the Market is a Must

This is FALSE. It is true that the selling price may lower but you save on the renovation process, also, prospective buyers may not share your taste, but they don’t want to redo something that has just been renovated. “You’re better off adjusting your price accordingly,” says Benjamin Franking, president of Franking Real Estate Services in Hollywood CA, and a regional director of the NAEBA. “Most buyers want to put their own spin on things.” It’s ok to have an out dated kitchen sometimes.

Save Your Hard Earned Money by Selling Your Home Yourself

We all like to save money, especially when it comes down to saving a few thousand bucks. There has been many cases where folks sell a house on their own, but they need the skills to get the home listed online, market the home to prospective buyers, negotiate the contract and then deal with any issues that arise during the inspection or loan application phases says, Local Records Office. It’s not impossible to sell a home on your own, but you’ll find that buyers expect a substantial discount when you do, so what you save on a real estate commission may end up meaning a lower price. It’s not impossible to sell your home on your own for the same price you’d get with an agent, but it’s not easy.

Real Estate Market Always Goes Up and It Rarely Goes Down

The real estate market could go up or down any time. In recent years, homebuyers and sellers have experienced a time of increasing home values, then a sharp decline during the economic downturn and now another period of increasing values. “They think that the market only goes up,” Carter says. “They don’t think about when a correction will come.” The recent recession should have reminded everyone that real estate prices could indeed fall, and fall a lot.

Renovating Will Bring in Big Bucks

“This one is true and false” says, Local Records Office. If you fix the heating and air conditioning system or roof, you will sell your house more quickly, but you probably won’t get back what you spent. You’re likely to recoup only 67.8 percent of what you spent on a major kitchen remodel and 70 percent of what you spent on a bathroom remodel on a mid-range home.

What You See Listed Online is What’s Available

Most of the homes that go for sale do get listed online but there are others that won’t. Your agent must choose to let the listings show up online. Most do, but it never hurts to verify that yours will.

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By Not Using an Agent As a Buyer You Will Get an Amazing Deal

You can get a better deal as a buyer if you don’t use a real estate agent. “That’s a completely false premise,” Carter says. If the house is listed with a real estate agent, the total sales commission is built into the price. If the buyers don’t have an agent, the seller’s agent will receive the entire commission.

A Fancy Open House Will Sell Your House

Believe it or not homes rarely sell to buyers who visited them during an open house. Agents like open houses because it enables them to find additional customers who are looking to buy or sell homes. If you or your agent chooses not to have an open house, it probably doesn’t hurt your sale chances – although holding a broker’s open house for other agents may be worthwhile says, Local Records Office.

To learn more about Local Records Office or real estate go to http://www.Local-Records-Office.org

 

 

12 Ways to Prepare Your Home to Get Higher Offers – Local Records Office

Get a Higher Offer on Your House – Local Records Office (VIDEO)

LOCAL RECORDS OFFICE – LOS ANGELES, CA – You’ve decided to sell your home, and you want to get top dollar for it. And you’ve seen TV shows where homeowners spend thousands of dollars staging their homes for sale, but there’s an important detail to consider: You don’t have thousands and thousands to spend says, Local Records Office.

Homebuyers Unexpected Delays at Closing – Local Records Office

The good news is there are many things you can do to spruce up the look of your home without shelling out a lot of money.

“Updating isn’t as expensive as it used to be,” says Lori Matzke, author of “Home Staging: Creating Buyer-Friendly Rooms to Sell Your House” and a home staging expert in Minneapolis who teaches workshops nationwide. “There’s a lot of DIY information out there.”

First impressions matter, and that’s why you want to start by making sure your home exudes curb appeal. Go all out with small do-it-yourself projects. Cut the grass, trim the bushes, get rid of dead branches and consider planting some flowers. Replacing the mailbox and house numbers and painting the front door can also make your home more appealing to a prospective buyer driving by. If the house looks dirty, wash the siding or stucco.

“I’ve seen houses that look really frumpy on the outside and great on the inside,” Matzke says, “but you can’t get [potential buyers] in the door.”

Prospective buyers, particularly young ones, often can’t see past the homeowners’ decor to what’s most important about a house – the floor plan and the space. That’s why it’s important to make the home look as neutral and appealing as possible.

“People get so stuck on the negatives, all the homeowners stuff, that they forget to look at the property,” Matzke says.

Sellers should give themselves at least a few weeks to get their homes ready for sale, especially if they need to take up carpet or repaint. While painting is fairly simple and inexpensive compared with other improvements, a new coat makes a significant impact.

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“Fresh paint is a really good seller, if you don’t know how to paint hire a few handymen” Matze says. “Do it in trendy neutral colors.” Painting dated kitchen cabinets can also make the kitchen look fresh and new.

You also want to make sure your home photographs well. Most buyers start their home search online, and they may quickly reject a home if the listing photos aren’t appealing.

There’s no rule of thumb about how much you should expect to spend getting your home ready to sell because every house is different. But investing a few thousand dollars can potentially increase your sale price by much more than that, in addition to making your house sells more quickly. “Anything that you can do is only going to benefit you,” Matzke says.

Here are 12 affordable ways to stage your home for sale:

Remove all clutter, personal photos, knickknacks and other junk. “Cleaning out the clutter just creates so much space, and that’s what people are looking for – space,” Matzke says. “It just really makes your home look bigger and younger.”

Edit your furniture. If your rooms are crowded, consider putting bigger and less attractive pieces of furniture in storage. This will open up space and make your home look larger. Make sure there is nothing obscuring buyers’ eyes from focal points, such as fireplaces and views.

Clean, clean, clean – then clean some more. Wash the windows, clean the cobwebs out of the corner and scrub the grout in the tile floors. Even though you’re not selling the furniture, clean that as well because it adds to the overall impression you’re trying to give.

Spruce up the outside. Add a new doormat, new house numbers and maybe a new mailbox. Paint the front door. The little stuff matters here.

Refresh your landscape. Clean up flowerbeds, add fresh mulch and plant flowers. Make sure bushes are trimmed and neat.

Paint. In some cases, you’d be wise to paint the entire house inside and out. In other cases, touching up and painting the trim might be enough. Paint over your kids’ purple walls with a neutral color. If your kitchen cabinets look old and dated, paint those. You can never go wrong with white, cream or brown, but you should pick a color that matches the rest of the kitchen decor.

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Clean or replace light fixtures and cabinet hardware. “It’s not a really expensive undertaking, but it really makes a difference in how the home is presented,” Matzke says.

Don’t forget the small stuff. Pay attention to details, says Sherry Chris, CEO of Better Homes and Gardens Real Estate. “New, matching towel sets in the bathroom, accent pillows on the couch and fresh flowers can be welcoming elements to a homebuyer,” she says.

If you can afford it, replace old carpeting. If your home has hardwood floors underneath, that’s even better. Ideally, you should refinish wood floors but even just exposing them is good, Matzke says.

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Make sure each room has a defined purpose. If you’ve turned your dining room into an office, return it to dining room status, Matzke says. But Chris suggests putting up tent cards that say “Dining Room or Office” to point out alternative uses for the space. That would also work in a bedroom you’re using as an office.

Landscape. Make sure your front yard isn’t overgrown with uncut dead grass or ugly weeds. This is the first thing potential homebuyers see first when they first arrive. You want to give a good impression all around.

Dogs, cats and other pets. Most of us a custom to our pets unique smell since we smell them everyday but other people may think that your dogs urine smell is overpowering the house. Take your cats litter outside and out of view. If you have aggressive dogs like Pit bulls or Rottweiler’s you might want to get someone to take them while the open house is happening.

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Water damage – If you have any kind of water damage make sure you take care of it as soon as possible. Water damage is dangerous and may scare off potential buyers. Mold usually grows from water damage and may cause serious health problems to you and others.

To learn more about Local Records Office or real estate go to http://www.Local-Records-Office.me

What is A Mortgage Loan?

A mortgage loan, also referred to as a mortgage, is used by purchasers of real property to raise funds to buy real estate; by existing property owners to raise funds for any purpose while putting a lien on the property being mortgaged. The loan is “secured” on the borrower’s property. Mortgage loan is different from a reverse mortgage, read here for more information.