ShareThisFree Home Buyer Seminar At Johnnycake Elementary School!
I will be conducting a free home buyer seminar at Johnnycake Elementary School on Tuesday April 22, 2008, at 7:00pm along with Faraji Mason of Wells Fargo Home Mortgage. We will be bringing everyone up to date on the current real estate market. If you would like to attend please contact me for more information.
Some Short Sales Can Take 60-120 Days To Be Approved And Settled!
A lot of buyers are really getting frustrated with how long it takes to get approved and settled on a property listed as a “short sale.” Before I show a client a property that says “short sale” I call the listing agent to see if the property has already been approved for a short sale. If not, I explain to my client that the process can take between 60-120 days to finalize. Some buyers can not wait that long because of their lease obligation. If the property does not say “short sale approved” do not assume it is. I have heard of properties being denied approval for a short sale and the buyers waited months to find out they could not buy the house they wanted. Ask questions before you look at the property. For those who is not familiar with the term “short sale” below is what I posted on a previous blog.
 For homeowners who can no longer afford to keep mortgage payments current ( because of either a job loss, divorce, or an option ARM that’s resetting higher) their are alternatives to bankruptcy or foreclosure proceedings. One of the options is called a “short sale.†A short sale in real estate means the lender is accepting less than the total amount due. Not all lenders will accept a short sale or discounted payoffs, especially if it would make more financial sense to foreclose. Also, not all sellers or all properties qualify for short sales. Just because a property is listed with short sale terms does not mean the lender will accept your offer, even if the seller accept it.
Book: A Complaint Free World
My wife and I are members of a mastermind group that meet once a week to assist each other with our goals. At one of our meetings Yamisi Daniel owner of InTouch Virtual Assistance told us about a book she read, “A Complaint Free World: How to Stop Complaining and Start Enjoying the Life You Always Wanted” by Will Bowen. The book sounded interesting. I buy at least a book a week on different topics, business, real estate, self help, golf, etc., so I went straight to the book store and purchased 2 copies for my wife and myself. Complaining is addicting. The more you complain the more you will have to complain about. Most of the time the things we complain about are things that we can not change or will not change.
Bowen says- quit complaining. If you do, you’ll be happier and healthier. His complaint free world challenge- is to stop complaining for 21 consecutive days. Why 21 days, some experts say that’s how long it take to break a habit. Bowen is giving away free purple bracelets that you can wear to help you realize exactly where you are on the continuum of positive and negative expression. Here is how to use the bracelet.
Begin to wear the bracelet, on either wrist.
When you catch yourself complaining, gossiping or criticizing (it’s ok, everyone does) move the bracelet to the other arm and begin again.
If you hear someone else who is wearing a bracelet complain, you may point out their need to switch the bracelet to the other arm; BUT if you’re going to do this, you must move your bracelet first!
Stay with it. It may take many months but when you reach 21 days you will find that your entire life is happier, more loving and more enjoyable.
I thought the book was excellent and our group has started the 21 days challenge. This book will help you to stay focus on the things you want in your life and instead of complaining about what you don’t like in your life you will look for ways to make changes. “A Complaint Free World” is a must read!
10 Ways to Prepare for Homeownership
Most first time home buyers don’t know what to do or how to prepare to buy their first home. Here is a list of 10 ways to get started.
1. Decide what you can afford.- Generally, you can afford a home equal in value to between two and three times your gross income.
2. Develop your home wish list.– Then, prioritize the features on your list.
3. Select where you want to live.– Compile a list of three neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.
4. Start saving.– Do you have enough money saved to qualify for a mortgage and cover your down payment? Also, don’t forget to factor in closing costs. Closing costs- including taxes, title fees, and transfer fees- average between 5 and 7 percent of the home price.
5. Get your credit in order.– Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.
6. Determine your mortgage qualifications.– How large of mortgage do you qualify for? Also, explore different loan options and decide what’s best for you.
7. Get preapproved.– Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.
8. Weigh other sources of help with a down payment.– Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government or nonprofit housing counseling agencies on down payment assistance programs for first time buyers.
9. Calculate the costs of homeownership.– This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.
10. Contact a REALTOR- Find an experience REALTOR like me who can help guide you through the process.
Carbon Monoxide Alarms Mandatory For New Constructions!
Effective January 1, 2008, all newly constructed dwellings including a one or two family dwelling, multifamily dwelling, hotel, motel, or dormitory must have Carbon Monoxide Alarms. I believe this is a major step in the right direction. Unfortunately, so many people do not take carbon monoxide serious. Below is so good information on carbon monoxide and how to protect yourself against it.
Carbon monoxide (CO) is a colorless, practically odorless, and tasteless gas or liquid. It results from incomplete oxidation of carbon in combustion. Burns with a violet flame. Slightly soluble in water; soluble in alcohol and benzene. Specific gravity 0.96716; boiling point -190oC; solidification point -207oC; specific volume 13.8 cu. ft./lb. (70oF). Auto ignition temperature (liquid) 1128oF. Classed as an inorganic compound.
Source:Â “The Condensed Chemical Dictionary,” 9th ed., revised by Gessner G. Hawley, Van Nostrand Reinhold Co., NY, 1977.
Unvented kerosene and gas space heaters; leaking chimneys and furnaces; back-drafting from furnaces, gas water heaters, wood stoves, and fireplaces; gas stoves; generators and other gasoline powered equipment; automobile exhaust from attached garages; and tobacco smoke. Incomplete oxidation during combustion in gas ranges and unvented gas or kerosene heaters may cause high concentrations of CO in indoor air. Worn or poorly adjusted and maintained combustion devices (e.g., boilers, furnaces) can be significant sources, or if the flue is improperly sized, blocked, disconnected, or is leaking. Auto, truck, or bus exhaust from attached garages, nearby roads, or parking areas can also be a source.
Health Effects Associated with Carbon Monoxide
At low concentrations, fatigue in healthy people and chest pain in people with heart disease. At higher concentrations, impaired vision and coordination; headaches; dizziness; confusion; nausea. Can cause flu-like symptoms that clear up after leaving home. Fatal at very high concentrations. Acute effects are due to the formation of carboxyhemoglobin in the blood, which inhibits oxygen intake. At moderate concentrations, angina, impaired vision, and reduced brain function may result. At higher concentrations, CO exposure can be fatal.
Average levels in homes without gas stoves vary from 0.5 to 5 parts per million (ppm). Levels near properly adjusted gas stoves are often 5 to 15 ppm and those near poorly adjusted stoves may be 30 ppm or higher.
Steps to Reduce Exposure to Carbon Monoxide
It is most important to be sure combustion equipment is maintained and properly adjusted. Vehicular use should be carefully managed adjacent to buildings and in vocational programs. Additional ventilation can be used as a temporary measure when high levels of CO are expected for short periods of time.
- Keep gas appliances properly adjusted.
- Consider purchasing a vented space heater when replacing an unvented one.
- Use proper fuel in kerosene space heaters.
- Install and use an exhaust fan vented to outdoors over gas stoves.
- Open flues when fireplaces are in use.
- Choose properly sized wood stoves that are certified to meet EPA emission standards. Make certain that doors on all wood stoves fit tightly.
- Have a trained professional inspect, clean, and tune-up central heating system (furnaces, flues, and chimneys) annually. Repair any leaks promptly.
- Do not idle the car inside garage.
What Are The MMP+2% and MMP+3% Programs?
The MMP+ 2% program is a premium priced first mortgage program that offers a first mortgage (at a slightly higher interest rate) that provides borrowers with a 2% closing cost assistance grant. The grant is repayable in full upon sale, transfer, or refinance within the first four years from date of closing; it is completely forgiven after 4 years. The MMP+ 3% is a premium priced first mortgage program that offers a first mortgage (at a slightly higher interest rate) that provides a 3% closing cost assistance grant to borrowers who are purchasing a home through the Maryland Mortgage Program (MMP). This grant also is repayable in full upon sale, transfer, or refinance within the first four years from date of closing; it is completely forgiven after 4 years. Go to www.morehouse4less.com for more information.
What Is DSELP?
DSELP stands for the Downpayment Settlement Expense Loan Program. The program helps eligible borrowers who are purchasing a home with a purchase price of $200,000 or less by funding a portion of their downpayment and closing costs. Individuals or families who are approved to purchase a home using a Maryland Mortgage Program first mortgage loan can apply for DSELP. A purchaser can borrow up to $2,500. DSELP is a deferred loan that is repayable when you payoff or refinance the home or upon sale or transfer of the house. DSELP is available statewide and homebuyer counseling is mandatory for each borrower. For additional information go to www.morehouse4less.com.
What Is CDA?
I have received emails from prospective buyers asking me what is CDA? CDA stands for the Community Development Administration. CDA offers three standard downpayment and closing cost assistance products for any borrower who is eligible for a Maryland Mortgage Program loan. Borrowers can choose to receive a closing cost assistance grant from either the MMP+ 2% or MMP+ 3% programs. Also, borrowers who are purchasing a house with a purchase price of $200,000 or less may choose to receive a zero-percent deferred loan through the Downpayment and Settlement Expense Loan Program (DSELP). for more information on CDA products go to www.morehouse4less.com.
Baltimore County’s New Mortgage Assistance Loan Program (MALP) Up to $35,000
The pilot program is an effort to encourage first time homebuyers to consider homeownership in existing residential communities in Baltimore County. The program is administered by nonprofit groups and is available in designated communities. Home Buyer’s Workshops and homeownership counseling are offered to potential homeowners. Mortgage Assistance loans up to $35,000 are available to families whose income is at or below 80% of area median, adjusted for household size.
 Buyer eligibility are;
1. Before signing a real estate contract, completes Homebuyer Education Curriculum: Workshop(s) & Counseling with a Baltimore County affiliated Housing Counseling Agency.
2. Meets Income Eligibility: 80% of area median, adjusted for household size.
3. First time homebuyer (cannot have previously owned a dwelling within the last 3 years). Exceptions an be granted for separation, divorce or death of spouse or prior ownership of documented substandard housing.
4. Qualifies for a fixed rate mortgage with a Participating Lender.
5. Post purchase liquid assets cannot exceed 25% of gross annual household income.
6. Buyer’s proposed post purchase housing and total debt ratios cannot exceed 31% and 43%, respectively, of the gross monthly household income.
7. Gift Contributions may not exceed 3% of the sales price.
8. Has cash equal to 5% of gross household income to contribute to purchase.Â
This program started on October 2007, and I have been told by some nonprofit agencies its doing well. please contact me for Participating Lenders, Property Criteria, and MALP Loan Terms.
Maryland’s Education System Ranks Among Nation’s Best!
I received the following information from Nancy S. Grasmick the State Superintendent of Schools for the Maryland State Department of Education. Ms. Grasmick stated the following. “Education Week, the nation’s leading education newspaper, recently published its 2008 “Quality Counts” report- the Consumer Reports of education. For the first time in the 12-year history of this report, Education Week has rated the overall quality of education in the states, and I am proud to announce that Maryland is leading the pack.”
Ms. Grasmick also stated that the 2008 Quality Counts report ranked Maryland’s education 3rd in the nation and that Maryland had only one performance indicator falling outside the “B” range. Maryland received a B+; the national average was a C. Also Maryland received high marks for K-12 achievement, ranking second in the nation with a strong showing on National Assessment of Educational Progress (NAEP) scores, high school graduation rates, and Advanced Placement (AP) performance, which the report ranked as the nation’s best. Good job Marylanders’.
