Why Location Matters—and What Qualifies as Good

What three things matter most when buying a residence? 

According to the New York Times, the answer has been "Location, location, location" since at least 1926, when the well–known expression was first used in a classified advertisement in the Chicago Tribune. Today's real estate agents still tend to agree. Buy a property in a good location and it's likely to be a solid long-term investment. But what qualifies a location as "good," you ask?

Start with the characteristics below.

Safety – The safer the better, so look for property in a neighborhood with a low crime rate. Consider locations where residents feel free to engage their neighbors and walk around outside even after dark.

Schools – Look for property in a good school district, even if you have no school-age children of your own. The quality of the neighboring schools will affect your home value and resale price in the future. See WFISD Website.

Entertainment – Properties nearest the popular places in town are always worth more. For example, if you live in a coastal area, a future buyer might pay more for your home if it's near the beach. If you live within a city, proximity to the best commercial district will add value.

Views – Homes near the water (lake, ocean or otherwise) or with spectacular panoramic views are always popular with home buyers. Add to the future value of your property by buying in such a location.

Transportation – The best location is one with easy access to public transportation such as the train or bus stop. If you're buying in a town where more people commute by car, easy access to the freeway may be valued more highly.

For more articles like this check out my monthly Newsletter:  http://mydigitalnewsletter.com/tanyaruff/

Keys to Successful Home Buying Negotiation

Sir David Frost, English Journalist and comedian, once wrote, "Diplomacy is the art of letting someone else have your way," and a measure of diplomacy is certainly an essential ingredient in any negotiation in which you wish to secure the most favorable outcome. Consider these additional keys to successful home buying negotiation. 

Know the Market- At any given time, your local real estate market may favor buyers or sellers. If you're planning to purchase a home, a buyers' market will afford you greater negotiation power because the seller will have fewer offers from which to choose. In a sellers' market-where offers tend to be plentiful- agreeing to a quick closing may still provide you with the upper hand. 

Don't Disregard Concessions- Most buyers are obsessed with price when purchasing a home. While haggling a lower figure may may be possible, there are easier ways to effectively reduce your costs. Known as concessions, they may include seller's contributions towards your closing costs, home improvements and repairs. 

Get Pre-Approved for a Mortgage- There are countless tales of real estate deals falling through because a loan failed to close. Smart sellers want to avoid such a situation, and buyers with pre-approval documents from lenders are more attractive as a result. 

Make Friends With an Expert- you can buy a home without a buyer's real estate agent;. But you're unlikely to secure the most favorable outcome should you choose to do so. Think about it: in a transaction where one side has expert assistance and the other does not, who will have the negotiating advantage? 

Keep Your Cool- Don't let your emotions get in the way. You're much more likely to get the home on your terms if you practice diplomacy, are open to compromise, and treat the seller and their real estate agent with nothing but respect.

For more articles like this check out my monthly Newsletter: http://mydigitalnewsletter.com/tanyaruff/

Refinancing an Underwater Mortgage

Refinancing an Underwater Mortgage

 

For most of us, our home is the biggest investment we’ll ever make—and we pour our hearts, souls and hard-earned cash into making it the best one possible as well. Of course, the value of our property fluctuates with the real estate market. When it’s good, our investment grows. When it’s bad, we can end up underwater—like 28.2 percent of U.S. homeowners were in third quarter 2012.

According to the real estate website Zillow, these mortgages added up to more than $1 trillion in negative equity. And while one might think that the 14 million borrowers affected were shut out of all money-saving refinance opportunities, the assumption would not hold true. In fact, it is sometimes possible to refinance an underwater mortgage.

 

Ask Who Guarantees Your Mortgage Your home loan may be owned, or guaranteed, by Fannie Mae, Freddie Mac, The Federal Housing Administration, Department of Veterans Affairs, your lender or a private investor. Before you can evaluate your refinance options, you need to figure this out. What’s the best way to do so? Just contact your mortgage servicer and ask.

 

Put Cash In Regardless of who owns your mortgage, a cash-in refinance is always an option. Should you choose to pursue a lower interest rate in this way, you will be required to contribute cash at closing in addition to the usual settlement fees. The exact amount depends on your lender and the underwriter’s loan to value requirement.

 

Have a HARP If your mortgage is owned by Fannie Mae or Freddie Mac, you may be eligible for the Home Affordable Refinance Program. You’ll need cash for closings costs unless you elect to roll them into your new loan, but you won’t have to fork over the thousands generally required in a cash-in refinance. You must be employed and current on your mortgage payments to qualify.

 

Play with the FHA If your mortgage is owned by your lender or a private investor, you may be able to secure a FHA Short Refinance. Your lender must participate in the program and you must be current on your loan payments. As part of the refinance, the amount you owe on your first mortgage will be reduced to no more than 97.75 percent of your property’s current value.

 

For more articles like this check out my monthly Newsletter: http://mydigitalnewsletter.com/tanyaruff/