Have a Mortgage Question? Ask Sue!

Do you have questions regarding mortgages?

We would love to answer them!

Send us your questions and see them featured here with our answers every Friday.  We will also be contacting you personally by email with our answer to your question.

To ask your questions, either:

1. Email asksue@pcMortgageAdvisor.com
   -- Write "Mortgage Question" in the subject line.
   
   
   ~ OR ~
   
   
2. Leave a comment right here on the blog
   -- Make sure to include your email address so we can respond to your question directly as well.

And you can always give us a call at our office to discuss your mortgage needs!

Question:  

What does it REALLY cost to buy (own) a home?  

Answer:  

In addition to the monthly mortgage payment of principal, interest, property taxes homeowners insurance and mortgage insurance (if applicable), owning a home has other expenses.  Here is a list of expenses to consider when owning a home.  Keep in mind that this list is NOT all-inclusive.

1. Homeowner Association Dues
2. Utilities (electric, gas, water)
3. Internet and Cable TV
4. Telephone
5. Garbage and Pest Control
6. Maintenance 

For more information on buying a home, please give us a call or send us an email!

Five Foreclosure Buying Myths for 2013

Here are 5 myths about buying foreclosures updated for 2013:

1. Myth: There is going to be a flood of new foreclosures to the market.
   
   Reality: This is a rumor that has been around for a few years and has consistently been discredited. But since the Federal Government reached a settlement over the robo-signing scandal in 2012, there has been renewed speculation that we will see another flood of REO properties overwhelm the market. Don’t count on it! Banks have learned that they can affect local housing prices by controlling their inventory. They have found that to realize higher prices, they need to release homes in measured amounts. They have also learned to mitigate their losses by agreeing to short sales instead of foreclosing. So we should see more accepted short sales in 2013.
   
   
2. Myth: You can go directly to a bank to buy a foreclosure.
   
   Reality: Wouldn’t it great if we could go directly to the bank once we found out about a house going into foreclosure, and buy it from the bank before it hits the market?  The truth is that banks have a system – first they offer properties on the courthouse steps. If it doesn’t sell, they will assign the property to an asset manager who then hires local real estate agents to put them on the market in the local Multiple Listing Service.  So, if you want an REO, pay cash at the courthouse steps.
   
   
3. Myth: You can get a killer deal by submitting lowball offers on foreclosures.
   
   Reality: This particular myth just will not go away. The real truth is that banks want REOs sold quickly, in 30 days or less, so they typically appear on the market priced a bit under comparable properties. If the property sells quickly, great. If it doesn’t, the bank will usually lower the price after about 30 days. Lowball offers are ignored and really are a waste of everyone’s time and effort. Even if you have cash, your lowball offer usually won’t be accepted. It is possible, however, to get a deal on a foreclosure that has been sitting on the market for a while, like over 90 days.  But keep in mind that there are reasons why a property has not sold quickly in our market.
   
   
4. Myth: You cannot use foreclosures when doing an appraisal.
   
   Reality: Or short sales, for that matter. This used to be the case, but nowadays, in many neighborhoods, all there are is foreclosures and short sales. So these distressed sales represent the actual value of homes in the area and MUST be used to appraise the properties. Times have certainly changed and the way neighborhoods are valued have changed as well.
   
   
5. Myth: Foreclosures are only affecting the bottom end of the market.
   
   Reality: This used to be true. However, while foreclosure rates on the lower end of the market have actually decreased, they are increasing on the upper end. According to Daren Blomquist, vice president of RealtyTrac, the market share of foreclosed homes under $1 million is shrinking, but foreclosures among properties valued over $1 million are rising – up 115% since 2007. And foreclosures on properties valued upwards of $2 million have increased by 273%.

As you can see, there is a lot of misinformation out there.  You need a knowledgeable Realtor to help guide you through the home buying process.  If you need help finding a qualified Realtor, please feel free to give me a call!

Your personal mortgage advisor for life!

Credit: What is It? And How to Establish New Credit

This 10 minute video I have prepared on credit has two parts.  Part 1 explains what credit is and what affects credit.  Part 2 tells you how to establish new credit.

This is especially great for people who have no credit, as well as those who are re-establishing their credit after a bankruptcy.

If you have any questions after you view this video, please give me a call or send me and email!

Welcome

Welcome to Sue's blog -- Sue's Mortgage Insights!