Archive for the ‘Huntsville AL Home Tips’ Category

Obtaining Huntsville mortgage approval in Huntsville, Alabama or anywhere else in the United States, can be either a simple or a consuming experience.  Either way, underwriters are particular about what you do with your finances when you are planning to buy a home. The process of getting a Huntsville mortgage from the time of writing the offer to the day of closing can take some banks and lenders up to 60 days. This is a big difference from not long ago when closings were happening in sometimes less than 20 days.

When you are trying to purchase Huntsville real estate using your Huntsville mortgage approval this can seem like an extraordinarily long time to try to keep everything in the same situation they were in when you qualified. There are some things you will not have any control over so you'll want to concentrate and be prepared for those things which you do have control over. Here are eight things you should be extremely careful not to do between underwriting and closing.

1) Do not open any new credit cards or lines of credit. Getting your Huntsville mortgage approval depends on keeping everything on the same even keel it was on at the beginning of the underwriting process.

2) Do not make a big purchase such as a vehicle. This includes trading your existing vehicle in for a lease or purchase that is more money.

3) Do not move large sums of money from one account to another account. This looks like you are trying to hide something or keep something from the underwriter.

4) Do not switch jobs. Especially do not switch from a position in which you are paid a salary to a commission job.

5) Especially do not quit your job - for any reason. This includes changing from the type of work you do to another vocation or starting your own business. If you already own a business do not open another one at this time.

6) Make sure you pay your bills. Not paying on the ones that you are disputing for the purposes of your credit may affect it between now and the time you close on your home.

7) Do not accept a gift of money unless you are going to fill out the proper paperwork. Even if a family member wants to give you a generous monetary gift to help with the purchase of your new purchase of Huntsville real estate, the proper paperwork must be filled out - speak to your Huntsville mortgage lender further about this.

Do not deposit different amounts of money into your bank account at random times. The deposits that go in should be able to be accounted for when it comes to where they are from. For example, a weekly or bi-weekly amount from the same source every time is clearly a paycheck. This can be documented by your Huntsville mortgage lender.

Some of the rules may not be feasible for obtaining your Huntsville mortgage approval. For example, the cash gift your family member wants to give you to help with the purchase of your home. The right way of accepting the gift versus the wrong way will allow you to use it rather than not when it comes to your Huntsville mortgage approval. The Huntsville home that you want to purchase is not yours until after closing. Keep in mind that with the longer times now for getting the underwriting done means the time to keep your finances in order has increased. Try your best to keep everything the same and before you know it you will be a proud new Huntsville home owner.

If you have agreed to sell your Huntsville, Alabama home using a land contract, you should do your homework. When you sign a land contract you are allowing the buyer to purchase your home and creating an income for yourself at the same time. If you are going to consider this type of sale, you should make sure the buyer can purchase the home and safeguard the equity you have in your home.

The land contract sale will consist of an agreement between you, the seller, and the buyer. You will carry the financing for the buyer and they do not get the deed to the property until the land contract is fulfilled. Depending upon the state you live in, the seller has the right to foreclose on the property if the payments are not made. Protect yourself by following a few simple steps. A credit report on the buyer is necessary. This will allow you to know what his record has been when it comes to paying debts. Ask for a down payment of enough to see that the buyer is serious about buying the property.

A few more tips on selling with a land contract is to make sure the purchaser has a job that is sufficient to pay for the land. The longer he has been employed, the better chance of payments being made. Require that the payments be made by a certain date or they are subject to late charges the same as a regular mortgage. Get personal references which should include some family members. Request the buyer get homeowner’s insurance so you they will be the responsible party after the contract is signed. Last but not least, do not sign anything until you have read everything.

A down payment is going to be advantageous in more ways than one. The down payment will qualify you for a loan and the more you can afford to put down on one of the Huntsville homes you are interested in purchasing, the less you will pay in payments.

There are many programs available for first time as well as current owners of Huntsville homes. Some types are government programs and private companies with down payment plans to help you purchase the Huntsville, AL real estate you are looking to buy.

There are basically two programs run by the government to help you purchase a home if you do not have a lot of money to put down. The Federal Housing Administration (FHA) is one option. A 3% down payment is all that is required if you qualify through their program. The active military and veterans of the military can qualify through the Veteran’s Administration for a home-loan guarantee program. This will allow them to buy their Huntsville homes with no down payment.

Some states have grant money and low interest loans which can be used for down payments. However, qualifying for these loans can be nearly impossible. If you qualify for a loan, you are probably above the income limit to qualify for the down payment assistance.

There are private organizations that offer down payment assistance. Nehemiah and AmeriDream are the most well known. The problem with this is the seller has to be willing to contribute a sum of money from the sale to their organization. This is where the companies get the money to help people with down payments.

With U.S. home prices hitting an average of a 21 year decline, a national index announced that there are several cities and town within North Alabama that are moving in the other direction.

Our neighboring city, Decatur, was at the top of the list of U.S. cities where real estate values are still appreciating, and Huntsville AL homes also made it's name known high on the list too.

Sellers here are feeling fortunate to be living in such a rare housing market, compared to most other states throughout the nation. And even with the incomprehensible economy our country is struggling in, a government housing report still lists Decatur as the number one city in the country in terms of homes gaining value. That's quite the talk of the town around here; during the course of the past year, real estate values in Decatur have increased more than 6.5 percent. When comparing that to other cities, that have seen over 20 (or more) percent decrease, North Alabama homeowners are feeling mighty privileged. With BRAC and the lower cost of living in this area, Huntsville real estate and the surrounding areas (like Decatur) are still seen as a great place to live.

There are many options available to the prospective home buyer when it comes to down payments. The Huntsville, AL real estate you buy will be much more affordable with a down payment. If you just use a little ingenuity you will find there are several options to come up with a down payment.

The first thing that you can do is have a certain amount deducted from your paycheck each payday and put this in a savings account. Next, a family member or a good friend could give you a gift of cash. If you have something of value such as a boat or a motorcycle, sell it. What is more important to you - having your own Huntsville, AL real estate or owning a motorcycle? Many people own stocks and bonds. These can be cashed in to raise money for your down payment.

If you get a refund at tax time, use this money to put towards your down payment. Borrow from your 401(k) as long as it is feasible to put it back. If not, take money out but remember it will be subject to taxes and early withdrawal penalties. Doe someone owe you money? If so, this would be a good time to collect. If your employer is pleased with the work you do a bonus would be a great cash raiser.

When purchasing Huntsville, AL real estate the money you put down will allow you to have instant equity in your home. Having a good down payment will also help with the amount you have to borrow to purchase the home. Less money needed will allow you to shop around to an array of lenders rather than a few.

Are you contemplating selling your Huntsville, Alabama real estate and have thought of selling to someone using a land contract? This is one of the options available in today’s market. There are several methods of financing for buyers. This is up to you as to whether you will accept one method or another. The typical home sale involves the purchaser getting a loan through conventional methods, the bank or lending company cuts you a check and you relinquish the home to the purchaser. This is preferred if you are planning to buy another home.

If you already have another home and are selling this one to cut back, the urgency for the price you are asking is not as much as if you were in the market for a new home. Owner financing is another option you may consider when purchasing your next Huntsville, AL home. The prospects of this are appealing if you want to have income from the home. It is better than renting your home because if someone is purchasing it they are responsible for the upkeep and maintenance of the home. If not, you are responsible.

A lease option is another type of sell that will give you’re the income you need and help the prospective buyer to save money for the purchase of the home. When the lease option expires the buyer either agrees to purchase the home or declines. Either way you are not out any expense because you have been receiving the lease money. Land contracts are another way to purchase your home if you can get the seller to agree.

When a Huntsville real estate agent takes an offer for a short sale to the lien holder they should also take a comparative list of Huntsville homes with the projected value in the same general area. This will allow the bank to see the prices of other homes which have the same square footage and basic layout as the home that is being offered. After seeing these prices, they may not think your prospective buyers have offered such a low offer after all.

Sellers may need to write a hardship letter so the bank can see why they cannot pay the difference between what they owe and the price that is being offered. Along with the proposition for the short sale, the seller should include the hardship letter, a statement detailing their profits and losses and a budget showing where their money goes each month so there is no doubt they have no extra income.

The Huntsville home buyers may not pass the inspection of their credit and other factors the bank will be looking at to determine if they are eligible to purchase the home through a short sale. Or, on the other hand, the bank may no longer be in possession of the home. Sometimes banks sell loans and do not realize they are the not lien holder any longer.

Be cautioned!  A great many offices end up losing paperwork before it is ever seen by the right people. There could be one paper that got misplaced before being put in the package. It could have been lost by the bank or the real estate company. Make sure you have a list of everything that should be in the offer and make copies in case one should get lost. It may not hurt to make a couple of copies of each paper you need.

Many Huntsville real estate agents have been involved in short sales. But, what exactly do short sales involve?

Short sales are basically when the lender agrees to accept less than the property is worth to sell it quickly. Most lenders, however, do not want to conduct short sales. The truth is, not every property will be eligible for a short sale nor will the sellers. While some Huntsville homes have been sold this way, here are a few reasons a short sale would not be possible for all prospective buyers:

1. The bank that owns the property may think the price being offered is too low.
2. Everything that should be in the package for the short sale may not be there.
3. If sellers do not qualify for a short sale this is one reason the bank will turn down offers from buyers.
4. The buyers may not pass the scrutiny of the bank that holds the mortgage.
5. The bank may not be the one holding the loan any longer.

If you are thinking of buying Huntsville real estate using the short sale method these factors will be discussed in more detail in my next blog.

If you are currently in the market for Huntsville, AL real estate, you may want to take note of this blog!  There are some mistakes in a real estate transaction that cannot be reversed before closing. If you are a novice or maybe just a risk taker, making a mistake might cost you being left with dealing with the unfortunate consequences for a long time - you may not even close on the home (losing your escrow, which is more often than not thousands of dollars).

Mistake #1.  Not using A Real Estate Advisor 

Buyers withhold information for many reasons including:

• Unsure of how the information will be received (or perceived)
• Don't think the issue is important 
• Have a poor Real Estate Advisor

Whether it is your real estate lawyer or real estate agent, they should be used to handling a great many transactions and have probably come across many things that you'd be surprised to know about!  If you suddenly find yourself in a position of being unsure about moving forward with your Huntsville, AL real estate purchase, you should talk with your Advisor so that they can help you through them and determine whether or not you really need to withdraw your offer/contract (and get your earnest money back).

Mistake #2.  Changing your Financial Standing Before Closing

This is a BIG one and it happens all the time, so pay attention!  DON'T BUY ANYTHING ON CREDIT (or credit card) anytime around your loan application (before or during)!  Stay FAR away from buying:

• Automobiles
• Major Appliances 
• Garden Equipment
• High End Electronics/Computers
• Home Furnishings

Even small changes in your credit ratios could mean your loan is denied. 

Mistake #3.  Purchasing The Wrong Home

Just as in any big decision, you want to make sure you know exactly what you want before you make your final move.  Make a list of all the features and criteria you want in your next Huntsville, AL real estate home - prioritize them into those that you MUST have and those you could live without.  Take the list with you to the homes you preview, as in the excitement of your home purchasing it is easy to forget something important which could ruin your home for a long time! 

I hope this information will help you in your next home purchase.  If I can be of any assistance, please don't hesitate to contact me at any time.  You can also view all Huntsville, AL real estate currently for sale by visiting my website.  Don't forget to bookmark this site and visit often!

When it comes to moving, many people gripe about all the hassles that come along with doing just that – moving ALL that STUFF!  I would be one of those people too - you are not alone!  And then there are those that consider renovating their homes to accommodate their change of lifestyle, growing families, or other life changes that beg either a home makeover or a move.

Another reason for a home renovation would be that your home is dated and just not built for today's family’s needs or desires.  When selling Huntsville, Alabama homes, you must always consider what is attractive to potential buyers and not necessarily you.

Whatever your reason, here are some tips on what you should think about before getting out the saws and the two by fours:

• Have Your Home Inspected

          Making the right decision(s) about where to spend your money is imperative.  By having your home inspected, this will give you the information you need to make the best decisions.

• Budget Upfront

           And then add on another 10% to your figure as a safety net.  There is also renovation loans that may give you more money to invest into your home.

• Keep It Green

            While shopping, choose energy-efficient options wherever possible, and you end the future Huntsville, AL home owner(s) of your house will save for years to come.

• Stay Consistent

            If you are adding on to your existing Huntsville, AL homes, make sure you are keeping within the same theme or style as the rest of your home.

There are many other suggestions when considering renovating and I would be happy to discuss these with you at your convenience.  You can also view my website to see other Huntsville, AL homes that are currently for sale and maybe even get some ideas on other people’s home layouts.