Got Down?

T. J. Jones	Keller Williams VIP Properties
	Featured Articles Down-Payment Got You Down? 10 Things You Should Know Before Buying a Home The Trivia Block

Down-Payment Got You Down? For many Americans, "coming up" with a down-payment for their first home purchase can be a major roadblock -- and quite often the reason for renting, rather than owning, a home. A "down-payment" is the difference between the home's purchase price and its mortgage amount. This percentage of the sale price must be paid up-front and can vary by lender, location, and loan program. A higher down-payment generally translates into lower loan interest rate requirements. Typically, a down-payment comes from personal cash savings, but it can also be a gift that is not to be repaid, or a borrowed amount secured by assets. While conventional loan down-payments may be close to 20% of the sale price, government loans typically have lower down-payment requirements. This allows potential homebuyers who normally cannot meet down-payment requirements an opportunity to qualify for a mortgage. Keep in mind that down-payments that are less than 20% of the sale price typically require mortgage insurance payments. Down-Payment Assistance Programs Fortunately, there are programs and organizations that can help you with your down-payment requirements: Government Loan Programs - Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA) may offer assistance in paying your up-front cash requirements. These programs can significantly reduce your down-payment requirements. You may also want to contact your local Department of Housing and Urban Development (HUD) Community Builders to find out what local down-payment assistance programs are available. State Housing Authorities - State agencies may offer down-payment assistance programs in your state. Private Mortgage Insurance - Private insurance companies that offer you the opportunity to finance some of your down-payment requirements. This allows lenders to accept lower down-payments than they would normally allow. Back to the Top

10 Things You Should Know Before Buying a Home 1. Before you start looking for a home, get pre-qualified for a loan. Banks, credit unions, and mortgage bankers make home loans; mortgage brokers process loans through a variety of lenders. The lenders will take an application, process the loan documents, and see the loan through to the funding stage. 2. If you have marginal or bad credit, consult your lender. You may be able to qualify for a loan depending on how long ago and what reason(s) caused the bad credit. 3. You will need a down-payment. Down-payment requirements vary depending on the type of loan. Many down-payment assistance programs exist. These programs may loan or grant you the funds necessary for the down-payment. Consult with a lender about programs available in your area. 4. You will need funds for closing costs. Closing costs are charges for services related to the closing of your real estate transaction. They include, but are not limited to: Escrow fees, title policy issuance fees, mortgage insurance fees, fire, flood, and homeowners insurance, county recorder fees, & loan origination fees. Consult your lender for an actual estimate of these costs. 5. Some loans have "points" and some do not. A point is a loan origination fee equivalent to 1% of the loan amount. Together with the interest rate, they constitute the yield on your loan for the lender. 6. Mortgage rates can be fixed or adjustable. Which one is right for you depends on whether mortgage rates are at a high or a low point when you purchase, and on how long you plan to live in the home. 7. There are two main types of loan categories. Conventional Loans. Conventional mortgage loans are available with fixed or adjustable interest rates. Government Loans. These include FHA fixed and adjustable rate mortgage loans, and VA fixed rate mortgage loans. 8. If you are a low-to-moderate-income homebuyer, there are special programs designed to help you. These loans are available through private lenders, as well as local and state housing agencies. 9. You may have to pay mortgage insurance. Mortgage insurance protects the lender from potential loss if you should default on your mortgage loan payment. Mortgage insurance is always required on FHA mortgage loans. 10. Many organizations offer home loan counseling to prospective homebuyers. They will cover home selection, realtor services, lenders, loan programs, homeownership responsibilities, saving for a down-payment, and other important pieces of information. Back to the Top

The Trivia Block What is the only state in the U.S. with a one syllable name? Maine! Back to the Top

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Got Down?

T. J. Jones	Keller Williams VIP Properties
	Featured Articles Down-Payment Got You Down? 10 Things You Should Know Before Buying a Home The Trivia Block

Down-Payment Got You Down? For many Americans, "coming up" with a down-payment for their first home purchase can be a major roadblock -- and quite often the reason for renting, rather than owning, a home. A "down-payment" is the difference between the home's purchase price and its mortgage amount. This percentage of the sale price must be paid up-front and can vary by lender, location, and loan program. A higher down-payment generally translates into lower loan interest rate requirements. Typically, a down-payment comes from personal cash savings, but it can also be a gift that is not to be repaid, or a borrowed amount secured by assets. While conventional loan down-payments may be close to 20% of the sale price, government loans typically have lower down-payment requirements. This allows potential homebuyers who normally cannot meet down-payment requirements an opportunity to qualify for a mortgage. Keep in mind that down-payments that are less than 20% of the sale price typically require mortgage insurance payments. Down-Payment Assistance Programs Fortunately, there are programs and organizations that can help you with your down-payment requirements: Government Loan Programs - Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA) may offer assistance in paying your up-front cash requirements. These programs can significantly reduce your down-payment requirements. You may also want to contact your local Department of Housing and Urban Development (HUD) Community Builders to find out what local down-payment assistance programs are available. State Housing Authorities - State agencies may offer down-payment assistance programs in your state. Private Mortgage Insurance - Private insurance companies that offer you the opportunity to finance some of your down-payment requirements. This allows lenders to accept lower down-payments than they would normally allow. Back to the Top

10 Things You Should Know Before Buying a Home 1. Before you start looking for a home, get pre-qualified for a loan. Banks, credit unions, and mortgage bankers make home loans; mortgage brokers process loans through a variety of lenders. The lenders will take an application, process the loan documents, and see the loan through to the funding stage. 2. If you have marginal or bad credit, consult your lender. You may be able to qualify for a loan depending on how long ago and what reason(s) caused the bad credit. 3. You will need a down-payment. Down-payment requirements vary depending on the type of loan. Many down-payment assistance programs exist. These programs may loan or grant you the funds necessary for the down-payment. Consult with a lender about programs available in your area. 4. You will need funds for closing costs. Closing costs are charges for services related to the closing of your real estate transaction. They include, but are not limited to: Escrow fees, title policy issuance fees, mortgage insurance fees, fire, flood, and homeowners insurance, county recorder fees, & loan origination fees. Consult your lender for an actual estimate of these costs. 5. Some loans have "points" and some do not. A point is a loan origination fee equivalent to 1% of the loan amount. Together with the interest rate, they constitute the yield on your loan for the lender. 6. Mortgage rates can be fixed or adjustable. Which one is right for you depends on whether mortgage rates are at a high or a low point when you purchase, and on how long you plan to live in the home. 7. There are two main types of loan categories. Conventional Loans. Conventional mortgage loans are available with fixed or adjustable interest rates. Government Loans. These include FHA fixed and adjustable rate mortgage loans, and VA fixed rate mortgage loans. 8. If you are a low-to-moderate-income homebuyer, there are special programs designed to help you. These loans are available through private lenders, as well as local and state housing agencies. 9. You may have to pay mortgage insurance. Mortgage insurance protects the lender from potential loss if you should default on your mortgage loan payment. Mortgage insurance is always required on FHA mortgage loans. 10. Many organizations offer home loan counseling to prospective homebuyers. They will cover home selection, realtor services, lenders, loan programs, homeownership responsibilities, saving for a down-payment, and other important pieces of information. Back to the Top

The Trivia Block What is the only state in the U.S. with a one syllable name? Maine! Back to the Top

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Winter is now here!

 

T. J. Jones	Keller Williams VIP Properties
	Featured Articles Let It Snow! But first... Some Winter Safety Tips Winterizing Your Vehicle Before Severe Weather Strikes Winter Car Kit The Trivia Block

 

Let It Snow! But first... Some Winter Safety Tips Preparing your home and property for cold weather conditions and responding to them effectively can reduce some of the effects caused by winter's weather challenges. Experts agree that the following measures can be effective in dealing with the effects of severe winter weather: Have your snow removal equipment serviced and ready for action. Have rock salt on hand to melt ice on walkways. Make sure your walls and attic are properly insulated. Caulk and weather-strip doors and windows. Install storm windows or cover windows with plastic from the inside. Have an ample supply of wood if you have a fireplace. Have safe portable space heaters available. Wrap water pipes in insulation or layers of old newspapers to keep from freezing. Let faucets drip a little to avoid freezing. Know how to shut off water valves. In case the power goes out, have disaster supplies on hand such as a flashlight & battery-operated radio (and extra batteries), a first aid kit and extra blankets & sleeping bags. Develop an emergency communication plan in case family members are separated from one another during a winter storm. Teach children how and when to call 9-1-1, police, or fire department, and which radio station to tune to for emergency information. Back to the Top

 

Winterizing Your Vehicle Preparing your vehicle for the winter season is one of the most important keys to safe winter driving. Have a mechanic check the following items on your car before the temperatures drop. Battery Ignition System Lights Exhaust system Brakes Oil Level Antifreeze Thermostat Flashing hazard lights Heater Defroster Tires/tread Wipers and windshield washer fluid Also, be sure to keep a windshield scraper and small broom for ice and snow removal, and maintain at least a half tank of gas at all times during the winter season. Back to the Top

 

Before Severe Weather Strikes Know how the public is warned (via siren, radio, TV, etc.) and the warning terms for each kind of disaster in your community: WINTER STORM WATCH Be alert, a storm is likely. WINTER STORM WARNING Take action, the storm is in or entering the area. BLIZZARD WARNING Snow and strong winds combined will produce blinding snow, near zero visibility, and deep drifts. WIND CHILL Seek refuge immediately. WINTER WEATHER ADVISORY Winter weather conditions are expected to cause significant inconveniences and may be hazardous, especially to motorists. FROST/FREEZE WARNING Below-freezing temperatures are expected and may cause damage to plants, crops, or fruit trees. Back to the Top

 

Winter Car Kit Flashlights with extra batteries First aid kit with pocket knife Several blankets Plastic bags (for sanitation) Matches Extra set of mittens, socks, and a wool cap Small sack of sand for generating traction under wheels Small shovel Tool kit Booster cables Brightly colored cloth to use as flag Back to the Top

 

The Trivia Block True or False? It must be 32F, or colder for it to snow. False. It has been known to snow with the temperatures in the mid 40s. That's because the temperatures are below 32F up in the clouds where the snow is forming. Back to the Top

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