Lenders like stability, continuity and consistency. Avoiding the pitfalls cited in Ronn’s post will improve your chances of obtaining the loan that will help you buy the home of your dreams.
Oh dear! It sounds so good, doesn’t it? But in the long run, it’s not. (BAD SCHUMER, BAD BOY!)
Mr. Schumer’s ideas are likely to cause more harm than good by delaying normal–and needed–and inevitable–market corrections.
Notwithstanding B. F. Skinner’s fall from grace, it can be reasonably assumed with a significant level of confidence that behavior reinforced (through a lack of negative consequences) will be behavior that is repeated.
Bad loan originators will be emboldened to return to their greedy, irresponsible ways and eager, ignorant, impulsive borrowers will flock to them faster than a clutch of Park of Roses ducks attacking the last crust of bread on the pond.
Eager, ignorant, impulsive borrowers.
In the end, there will be no escaping the negative consequences of all the ignorant, irresponsible and criminal behavior that precipitated this giant financial imbroglio. But, like an oil slick, its reach is far and wide but not all that deep. The economy should be strong enough to withstand the stress and recover just fine.
Locally, housing market values never shot up like they did in other regions of the country in recent years. Consequently our home values are not likely to suffer the big losses that are now evident in portions of Florida, Arizona and California, for example.
Columbus area home buyers–be not afraid! The nexus of flush inventory, “friendly” sellers and favorable interest rates around here is the best that it has been for a long time and is not likely to be repeated for some time to come.
Just one caveat…you will probably need somewhat decent credit to get in the game. (About that, more later…)
You don’ t believe it, do you? A colorless, odorless, radioactive gas seeping into your home causing lung cancer in non-smokers? Pul-eeez!
Well, the EPA believes it and has designated January as National Radon Action Month to raise awareness in our doubting population.
The Surgeon General’s Office has also weighed in.
All you need to do is do a web search for radon…or have a look at my last post about it. You’ll find out everything you need to know to justify action on your part.
Central Ohio is in the middle of a high risk zone for radon. If you or your kids hang out in the basement (or if you are a smoker) your risk is elevated dramatically.
So have your home tested by a professional, or test it yourself. Contact the Ohio Department of Health Radon Program (1-800-523-4439) for information on where to obtain low cost radon test kits.
Our good friend and a frequent client choice for home loans, Andy Deutschle of Strategic Mortgage, brought the passage (December 19, 2007) of this legislation to our attention. It extends the tax deduction for mortgage insurance beyond the end of 2007 when it was scheduled to expire.
This is how he tells it…
At a time when homeowners need relief most, Congress has taken another big step to help by extending legislation that makes mortgage insurance payments tax deductible for many homeowners. The tax legislation, originally approved in December 2006, pertained only to loans closed in the 2007 calendar year. With this renewal, there are three important points to note:
The tax deductibility extension is for three more years (through 2010). After that, it will have to be renewed again for existing homeowners to continue to deduct premiums and for new borrowers to take the deduction.
The specifics of the legislation will remain the same. Borrowers whose annual adjusted gross income is $100,000 or less can deduct their MI premiums from their 2007-2010 federal income tax returns for homes purchased or refinanced during this timeframe. Those with incomes between $100,000 to $109,000 are eligible for a reduced tax break under the law.
Deducting the cost of MI on federal tax returns is estimated to save borrowers $200-$400 each year.
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All the doom and gloom talk about real estate values damaged by the subprime loan debacle and other market trends has many people nervous about the future of their home investment.
How are things in Columbus?
This month’s issue of Forbes Magazine names 10 cities as “America’s Most Stable Housing Markets.” Columbus is one of their selections—and we agree. In general, Columbus, despite the undeniable impact of an unprecedented rash of foreclosures, seems to be demonstrating signs of improvement that may be expected to gain in strength in 2008.
It’s always nice to read hopeful news, isn’t it? We think Columbus is a great place to live for lots of reasons. Resistance to big economic swings is only one of its many subtle charms.
This item in the Charlotte Observer chronicles how perfidy, ignorance, greed and naiveté combine to smash the dreams of financially fragile home buyers and send destructive repercussions throughout financial markets. There is plenty of blame to go around but you can trace the origins to outfits like this.
eSORN is the electronic sex offender registration and notification web site for the State of Ohio. Attorney General Mark Dann has implemented one of the most advanced and effective web sites in the country to deal with sex offender notification.
Most states have an antiquated patchwork system (mailing postcards) to notify the public of sex offenders in their community. The eSORN database is one of the first systems in the country to link all of the state’s county sheriff’s offices and correctional facilities records offices together.
The eSORN web site is easy to use and provides great information to the public. Some of the great benefits of the new system are:
Email Alert: you can quickly sign up to be notified via email if any sex offender moves into your community (within one mile).*
County Sheriff Offices: “one click” access to contact your local county sheriff to obtain more
information or to submit a tip/sex offender.
Instant Offender Search: you can instantly search to see which sex offenders currently live in
your community. A great map tool.**
Most Wanted List: View a list of the state’s most wanted sex offenders.
Everyone should check out the new eSORN system today, especially if you are thinking about buying a new home.
*To ensure that you receive email notifications please place notifications@icrimewatch.net in your address book and adjust your bulk or junk mail settings.**make sure any “pop up” blocking utility programs are turned off.
In early August, Governor Ted Strickland signed a new, expanded Homestead Exemption Act that will provide property tax savings (money!!!) to qualified senior citizens and disabled Ohioans. The Homestead Exemption credit has been in effect for years. But, in the past there were very restrictive income requirements to qualify for the credit.
The BIG NEWS now is that the new Homestead Exemption has NO income qualifications. If you are 65 years or older and a homeowner in the State of Ohio then you can reduce your taxes and save money just by filling out a form (Franklin County) and sending it in to your local county auditor.
IMPORTANT! The completed form must be received by your county auditor no later than October 1, 2007. The good news is that the form is very simple to fill out. So don’t delay.
For example, if you have a home with a market value of $100,000, you would get billed as if your house was worth $75,000. Average savings is projected to be $400.
Don’t fret if you don’t qualify for the new credit; just contact your parents, grandparents and other family members that might qualify for the credit. Your family members will be so happy that you saved them money that they will put you back in their will.
Voila, you are in the money!
You can follow the links in this post for more information. Please contact your local county auditor for more information on eligibility and tax savings.
Although our firm never represents sellers or their property, we do pay attention to trends from the marketing/selling side of the profession because it affects our buyer-clients.
Everyone likes to tour a properly staged home because it is pleasant and comfortable. But from our point of view, staging alone is seldom enough. This recent article in Realty Times moves far beyond a quick coat of paint, de-cluttering and enlightened furniture placement to stage a home for viewing by buyers. And that a good thing.
A updated and well-maintained home is what we want for our clients. Some of the old ideas of preparing a home for sale by focusing on surface fixes and cosmetic enhancements (same witch—new dress) seem to be retreating in the face of the powerful buyer’s market that has gripped so many areas. Author Al Heavens discusses ways of actually improving the product instead of simply dressing it up.
We would like to think that this represents a permanent trend driven by changing business or cultural values rather than a temporary market-driven fad. But we doubt it.
Once this current market cycle has ended…well…who knows for sure? We will keep reminding our clients to remember that a witch in a new dress is still a witch.
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Buying Homes, Mortgages | Tagged: dream home, home loan, loan, mistakes, Mortgage, things not to do | 
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