Sunday, September 28, 2008

First Time Home Buyers: Part 8 of 8

Grading Local Schools

When thinking of buying a home, most people research various neighborhood amenities, including local schools. Regardless of whether you have children, schools can affect property values and are an important consideration when buying a home.

Here are four ways to tell if area schools are having problems:

Local test scores low or dropping
Low test scores can be a product of resource shortages, poor teachers, lack of commitment by the school district or parents.

Student enrollment dropping
If fewer families are moving into the neighborhood, or parents are choosing schools outside the neighborhood, the school may be having problems.

Poorly maintained or vandalized buildings
Inadequate upkeep may be a sign of funding shortages and low involvement from parents.

Troubles at PTA meetings
Tension among parents or between parents and the school's teachers or management may indicate serious problems in a school.

If you have any doubts about the school quality in your target neighborhoods, please give Mohamed Mekhimar a call and we'll be happy to discuss them with you. Learning about local schools helps you make an informed choice about where you live.

First Time Home Buyer: Part 7 of 8

What Goes Into Your Monthly Mortgage Payment

When you’re thinking of buying a home, you may wonder what your mortgage payment will look like. When you have a mortgage, you’ll have several different portions of your payment each month.

Your mortgage payment consists of principal, interest, taxes and insurance (often abbreviated as “PITI”), and sometimes additional fees, such as homeowners association dues.

Principal is the money you borrowed to purchase the home.

Interest is the cost of borrowing money.

Taxes are paid by homeowners to local governments, and are usually a percentage of the assessed property value.

Insurance helps protect against financial loss from fire, natural disasters or other hazards. Most lenders require you to have a homeowner’s insurance policy on your home because it will help protect their investment as well as yours.

Remember, many loan quotes will only include your principal and interest. You’ll also need to factor in the taxes and insurance to calculate your total monthly mortgage payment.

When you’re ready to take the next step to buying your home, please give Mohamed Mekhimar a call. We’ll be happy to explain the process further and help you narrow your home search.

First Time Home Buyer: Part 6 of 8

All About Down Payments

An important aspect of getting a home loan is saving money for your down payment. You have many choices to make your home more affordable to you.

Lenders used to require a down payment of at least 20 percent of the home's price. These days, however, many lenders offer flexible home loan programs allowing you to put very little down -- three percent or less of the home price. For some buyers it's possible to buy a home with no down payment at all, or to receive help from local down payment assistance programs.

If you decide to pay make a down payment less than 20 percent, your lender may require Private Mortgage Insurance (PMI), which protects the lender in case you cannot repay the mortgage. Talk with your mortgage professional to find out the smartest deal for you.

You'll also need to pay for closing costs, which are costs associated with initiating a loan. These can include loan origination fees, discount points, attorney fees, recording fees and pre-paids. They often will total from three to five percent of the price of the home.

Once you have you down payment and loan pre-approval, it's simply a matter of finding the right house. Please call or email Mohamed Mekhimar when you're ready to take this next step towards owning your own home.

First Time Home Buyer: Part 5 of 8

Choosing the neighborhood for your home!

Buying a home is an investment in the neighborhood as well as the house. In fact, the character and amenities of the neighborhood may be as important to the property value as the house itself. No matter what kind of neighborhood you're looking for, it's important to know its history and future when you decide to buy.

Here's what to research:

1. Recent sales - Find out if the market is slow and what homes have been selling for.

2. Homes now for sale - What homes are listed in the area, and are they listed above past sales? This will give you a good idea of the area's overall market value.

3. Home appreciation - Historical data on sales gives the best indicator of a neighborhood's potential. Are homes appreciating at 3%, 5%, 10% or higher every year?

4. Schools - School scores and district boundaries are very important to research before moving into a neighborhood. The closest school is not always in your district, and school scores reveal if a neighborhood is invested in the schools' success.

5. Crime - Get the hard facts about any problems in the neighborhood -- don't depend on anecdotal information.

6. Demographics and growth - Find out how the area is growing and changing.

7. Community -- Learn about neighborhood features, such as public schools, shopping areas, parks, commuting options and more.

We can help you with this information-please give us a call or email us any questions you have. You'll find that the more you know about the neighborhoods you're considering, the easier it will be to narrow your search for your new home.

Tuesday, September 23, 2008

First Time Home Buyer: Part 4 of 8

The Importance of Pre-approval

Pre-approval can be a very valuable step towards purchasing a home. Many home buyers get pre-qualified for a home loan early on, and then become pre-approved before beginning a serious home search. By completing your mortgage application prior to choosing a home, you can get a pre-approval letter stating how much home you can afford.

Your pre-approval letter lets you know exactly how much you can spend, and it shows home sellers and real estate agents that you're serious about buying a home. This may give you leverage in the negotiation process. Many sellers actually prefer to work with pre-approved buyers, especially in hot real estate markets.

To find a mortgage professional and get started with your pre-approval for a loan, please call or email me. My goal is to provide you with practical information as you consider your next move.

1% Seller-Buyer Program!

If you purchase any home using Mohamed Mekhimar as your buyer’s agent, he will list and sell your home for as little as 1% LOC* backed up with a written guarantee.

How does this program work? The answer is simple. It’s a package deal. Allowing me to represent you in the sale of your current home and in the purchase of another home should not cost you twice. Providing you this incentive to allow me to represent you as your preferred Real Estate Agent is really nothing more than being fair and reasonable to you ...and your pocketbook.

When you purchase your next home or condo, the Seller of that property will be offering a ‘selling office commission*’ to the Broker & Agent who represents the buyer. In most cases this commission is 3% which is normally paid by the Seller...not by you. This cost is my compensation for representing you as your buyer’s agent during your home purchase. It’s a win-win scenario for each of us. You get my Full Service program from Listing to Closing when I sell your home as your listing agent AND you get full representation and excellent customer service with me as your buyer’s agent ...from helping you find your next home to the purchase offer through to Closing.

You will have sold your current home and purchased a new home and saved thousands of dollars in real estate fees.

By the way, the home you buy can be any home in the MLS, as well as For Sale by Owner or new construction. As long as I represent you as your buyer’s agent, I will list and sell your home for 1%.

Please let me know how I can be of service to you in making your next home purchase or the sale of your current home a rewarding experience.



*LOC - Listing Office Commission SOC - Selling Office Commission

First Time Home Buyer: Part 3 of 8

How Much Home You Can Afford

First-time buyers are often unsure about the financial aspects of buying a home, and you may have many questions swirling in your head. How much can I afford? Do I need a large down payment?

Your home price range will be determined by your income, credit history, the cash you have for a down payment and closing costs, and your debt. How much you earn compared to how much you owe will likely determine how much the bank allows you to borrow.

The financial rule of thumb is: your total monthly debt service, which will include your monthly mortgage, shouldn't be more than about 36 percent of your gross monthly income. Most experts say that your monthly housing expense, including taxes and insurance, should not exceed about 28 percent of your gross monthly income.

Naturally, every situation is different, and each lender has different rules about working with buyers. A number of choices within your control can affect your monthly payment as well. For example, you might choose an adjustable rate loan, which has a lower initial payment than a fixed rate program. Similarly, a larger down payment may lower your monthly payment.

If you'd like more information about how much home you can afford, please call or email Mohamed Mekhimar. We can help you get the mortgage information you need.

First Time Home Buyer: Part 2 of 8

Considering Making a Move?

When you're thinking about making a move, the first steps in the home buying process are:

1. Deciding when you want to make your move
2. Considering how much money you would like to spend
3. Thinking about what type of home you would like
4. Deciding where you would like to live

The next step is usually finding out how much loan you can qualify for and deciding the type of financing will work best for you.

If you're in the "thinking about it" stage, you will want to speak with a lender about receiving pre-qualification. If you choose to become pre-qualified, the lender will determine how much you can borrow based on financial information you provide to the lender. Pre-qualification is useful for making preliminary decisions about how much home you can afford, but does not assess your creditworthiness.

You will need to fill out a loan application and go through the lender's loan approval process at a later date. When you decide to buy a home, you will want to become pre-approved for a loan prior to beginning your home search.

Please don't hesitate to call or email me for additional information about the buying process. Our goal is to provide you with practical information as you consider your next move. And, when you're ready to make your move, we'll help you find your dream home and handle all the details of the transaction, so all you need to do is pack

Tuesday, September 9, 2008

How to Make Rooms in Your Home Look Larger with Lighting!

A bright and well-lit home can dramatically change the mood of your home and help you feel relaxed and comfortable all year long. Here are some tips to lighten up your home and make the rooms look big and inviting:

* Choose different types of lighting to avoid the expense of installing windows or skylights. Lamps or other accent lighting can make a dull room appear elegant or small rooms seem larger.

* If you have a room with a dark wall or a narrow, dark hallway, hang a group of pictures and light them with adjustable halogen track lighting to create the effect of a photo gallery.

* Paint ceilings a light color to avoid making them seem lower than they are and give the room a cramped feel.

* Use color to add cheer to a room. Pink and green tones have a calming effect while darker colors, such as red, tend to cause agitation. Neutral wall tones create a harmonious environment. Bright colors should be used as accents in pillows, artwork or flowers.

* When selecting paint, tape large color chips together on a wall to get a better idea of the shades you like. When you’ve narrowed your choices down, buy a quart of 2 or 3 colors and paint 1 or 2 foot squares next to each other on both shaded and brightly lit walls. Choose the color that looks best in both kinds of light.

Call or send me an email if you’d like the names of decorators, contractors, or other service providers.

First Time Home Buyer: Part 1 of 8


Why Buy Instead of Rent?

When you're thinking about buying your first home, it's essential for you to be confident in your decision to buy instead of rent. However, you may not know about the many great reasons to buy a home! Here are just a few of them:

Smart investment
When you invest in a home, it offers the possibility for appreciation in value. The equity becomes yours when you're still paying off your mortgage. You even get to live in it while your investment matures.

Tax advantages
Since both mortgage interest and property taxes are tax deductible, homeownership can save you significant amounts of money every year.

Planned housing costs
You decide how much you spend on your home, including repairs and improvements. Unlike renters, homeowners with a fixed-rate loan can lock in their monthly housing costs.

Improvements to your taste
You can choose which improvements to make your own property, such as a deck, kitchen remodel, or new paint, instead of needing permission from your landlord.

If you have more questions about making the decision to buy a home, please feel free to call (804-243-0605) or email (mmekhimar@remax.net)!

Warm regards,