Be Aware When Shopping For A Mortgage

Shopping for a mortgage is one of the most important steps involved in purchasing your next home.  Since the terms and conditions that you agree to will impact your financial future for years to come, it is vital that you take the necessary time to research and compare the best packages available to you.

Many buyers tend to primarily focus on obtaining the best interest rates; and though this is an extremely important piece, there are a host of other factors to consider.  Therefore, let’s discuss some of the other criteria that should be reviewed before signing on the dotted line.

First of all, please be wary of only searching for rates and quotes online.  Although there are very reputable companies that can be found using an internet based search, it is wise to also spend time working with local companies and banks that are familiar with the current market.  This is a very detailed process, so you should not base your decision on simply one or two sources.

As you have seen from the recent mortgage industry scare, it is typically best to invest in a fixed rate loan.  With adjustable rate mortgages, you could be stuck paying higher amounts of interest and maybe even eventually owe more on the loan than the house is worth.  Be sure to review this with your mortgage professional before making any final decisions.

Next, along with attractive interest rates may also come additional fees and terms.  Be careful that you fully understand what you are signing up for before choosing your mortgage.  Although the rates may look somewhat favorable, here is a list of some things to be aware of:

Processing Fees—Items such as processing and underwriting fees could be added to the cost of the loan as well.  Although you typically will have to pay a few hundred dollars for the application fee, there are other extras that may be attached as an added expense.

Private Mortgage Insurance (PMI)—In order for lenders to protect their own interests, buyers will be required to pay for PMI on a loan until they have built up 20% equity in the home.  These fees are calculated based on a person’s credit score.

Appraisals—It is becoming more common for lenders to charge this fee upfront before an appraisal is conducted.  Unfortunately, you will end up paying for this regardless of whether or not it gives you the evaluation necessary to obtain the loan.

Points—Each point equals 1%  of the actual loan amount.  Many buyers can elect to choose a plan that charges points so that they can acquire a lower interest rate.  Lenders will typically charge anywhere from 1-3 points (or even more), and these will be charged as a fee at closing.  Whether or not you should choose a plan with points will be dependent on your available cash and how long you plan on staying in the home.

This is just a sampling of what may be included with your mortgage.  It is best to find out up front exactly what you will be responsible for with all additional fees included.  As long as you are working with a reputable company, you should get a good feel of what will be expected at closing.

Be sure to avoid working with any parties that seem to make unfulfilled promises, suddenly change the terms at closing, ask for more information than is necessary to process the loan, or overall make this an uncomfortable process for you.

There are more than enough resources available to you to obtain a loan that will suit your needs. 

Happy Mortgage Shopping!

Before You Buy Homeowner's Insurance

In order to guard yourself from risk and liability, it is essential to invest in a homeowner’s insurance policy that will give you the protection you need.  Although such policies are not a requirement by law, any mortgage company will require this as a stipulation to receiving your next home loan.

Types of Policies

Several types of plans are available that include various optional riders dependent on your particular needs.  There are specific policies for older homes, mobile homes, condos, and anything from basic protection to high liability coverage.  However, a majority of owners will invest in something known as an HO-3 policy, because it offers protection for both the dwelling as well as your contents that are available in your home.  

For example, the HO-3 policy will guard the outside of your property from any of the open perils (i.e. threats or dangers) to your home and also named perils for your contents.  However, there will be a list of specific issues that the policy will not protect you from (such as earthquakes or water damage).  Uncovered perils may be added at an additional cost. 

On the other hand, others may be interested in reviewing the options available with the newer HO-5 policy.  This coverage takes the HO-3 a step further by providing open peril policies for both the home and also contents.  So essentially you would be protected for more items within your house, without having to prove that damage occurred under one of the named perils.

Other Important Factors

Next, there are liability limits.  In the event that damage would occur, this amount would provide the coverage necessary to help restore your home.  However, please keep in mind that this is not the same thing as the home’s actual value.  There are other things that you need to consider such as the land, possessions, living expenses (if you need to rebuild), or other structures that are located on your property.

Therefore, take the time to assess what type of limit you would need to help cover the total loss in the event of a major catastrophe.  Also, be sure to revisit your policy from time to time as the property appreciates, and/or you consider making changes and additions to the property.

Finally, it’s important to review the differences between actual cash value and replacement costs.  For those who have a lot of contents that hold a high value, it may be better to consider replacement cost coverage, which could be worth the added price.  This will provide a brand new replacement for all covered contents.  

On the other hand, for people who are less concerned with replacing everything at market value with comparable items, you may want to consider actual cash value protection for household items which will take into account depreciation.

Of course, this is only the tip of the iceberg when considering a homeowner’s policy.  Other things that can be considered include:

Jewelry Coverage

Personal Articles Coverage

Umbrella Coverage

Liability Claims Protection

So...take the time to schedule an appointment with a qualified insurance agent to discuss your needs and review what else may be available.  If you need names and numbers of reputable insurance agents, please feel free to contact me as well.

Real estate agents: Get over your smartphone hang-ups

A life lesson in being unavailable!

By Alisha Alway Braatz
Inman News™

Last week my husband and I took our very first family vacation with our new little one, and on the second day away from home my cell phone suddenly stopped working. It offered no warning or explanation for its deadness. (Personally, I think it was made to break two weeks before my upgrade.)

So I found myself without mobile access to the multiple listing service and my email, documents, faxes, phone, address book, calendar, blog feeds, GPS, camera, Facebook and TweetDeck accounts --- I had nothing!

I did find a phone plugged into a wall with a handset as big as my head, but I couldn't remember my own office number. What to do ... what to do?

The nearest Verizon store was 35 miles away, but the thought of spending even one of my precious vacation days in manmade purgatory didn't jibe. I stood there in the hallway, cradling my dear departed Droid and wondering what would happen next.

I stood there a long time.

Nothing happened.

There was complete and utter silence. No message updates and no voice mails. Nothing.

After five or 10 minutes I realized that other people were packing their swim bags for the pool.

"Do you want to borrow my phone?" asked my husband, towel in hand.

I looked at his iPhone in disgust. Its one button fooled me every time.

I shook my head, "Hey, we're on vacation. I'll be fine. Everything will be fine." But I wasn't sure. I reluctantly put the phone down.

The carnival atmosphere of the pool brought me out of my doldrums. I challenged my two 7-year-old nieces to a cannonball competition. Then we ate ice cream. Then we rode our bikes to the novelty store and bought stickers. By 3 p.m. I didn't miss my phone at all. It felt like I was 7, too! And I'm sorry, Aunt Kim, we were unavailable.

Remember that? Being unavailable?

Nowadays, if you don't answer your phone you are doing it on purpose. It's taken as a personal insult because who doesn't have their cell phone in their pocket or stuck in the top of their bra?

And who hasn't promised on their voice mail to call back immediately, at the first possible opportunity, or on the quarter hour?

I started to think: How funny would it have been to see our parents pack for vacation, filling the station wagon with the IBM computer, the yellow pages, four yearbooks each, a map of the world, and the 12-volume encyclopedia set we bought from the last-known traveling salesman.

Not to mention my boom box and tapes. Lots of tapes.

Certainly, some of you are arguing that our parents would have brought all of that stuff if only they could have.

Really?

What has this magical technology brought us? Teenagers are growing sixth fingers to prop their cell phones up so they can text faster. We are never alone. People want to Skype me at 7 a.m. Really, 7 a.m.?!

And there's too much to do. Angry Birds and Jewels have replaced taking deep breaths in the great outdoors.

A broken phone was the best thing that happened to me this summer. I received the gift of freedom, and I liked it!

Sure, I have another phone now: an even bigger, faster and more powerful phone that drives my car and pumps gas for me. But every now and then I put it in a drawer and walk away. I am unavailable! And not because I'm in the bathroom or in the car wash.

Did you know that right outside your window the sky is blue, the sun is warm, and trees are growing taller every day?

Try it. Be unavailable.

Alisha Alway Braatz is a buyer's broker for Coldwell Banker Advantage One Properties in Eugene, Ore., and a real estate humorist.

OPEN HOUSE SUNDAY SEPT 11 ~ 2-4PM

640 SW 161st Street

Oklahoma City, OK 73170

This beautiful home in Stone Meadows South has a very pretty open MIL floor plan. The large living features a wonderful corner tiled fireplace; ceiling fan; & neutral carpet. The kitchen features a breakfast bar; recessed lighting; Oak cabinetry; & black/stainless steel appliances. The laundry has a pocket door, pantry, & great storage! The master bed & bath features a separate shower; large austrailian closet w/ shoe storage; & large jetted tub. One of the secondary bedrooms works great for a study with its bay window! This home also has 2” faux wood blinds; hall storage; covered & open patio, a manibloc plumbing system, surround sound in living, as well as an additional flagstone patio; &  no backyard neighbors! Call or Text Rhonda at 820-1740.

http://www.rhondasrealestate.com/

Investing in Real Estate vs. Stocks

When it comes to investing in land/real estate or stocks, there is no one size fits all.  Although both vehicles have proven over the long run to provide excellent returns when handled properly, each person will have their own unique goals, risk tolerance, and capital that they are willing to spend.

Additionally, this is where a financial planning specialist may offer useful insights as well.  You may have heard the advice to not put your eggs all in one basket.  Therefore, it may even be beneficial to consider pursuing both forms of investments to better leverage your profits.

So our goal is to offer an overview of both sides of the coin in order for you to start forming your own opinion.  All in all, it is most important that you proactively take your financial future into your own hands and only pursue the path that you feel will be the best for you and your family.

Benefits of Investing in Land or Real Estate

Many very successful people started out their investing careers in real estate.  Plus regardless of what happens in the economy, it is factual that people will always need a place to live.  Homes very rarely decrease in value when they are well maintained and purchased correctly.

In addition, land can be an extremely lucrative investment since the world’s population continues to increase, and as a result the demand for land used by residential, commercial and retail entities is always on the rise as well.

With real estate you are offered something that is tangible and can be easier to calculate your due diligence.  In other words, after reviewing the property specs with appraisers and inspectors, you have a fairly good idea of what you are getting into.

Downside of Real Estate Investments

First of all, there is typically a lot more time and energy invested in managing your investments.  Whether you are renting your property out to tenants or keeping your lots clean and free of debris and coding violations, this is something you will be much more actively involved in.

Next, real estate always has some sort of cost involved.  Regardless of what you decide to do with your properties, you will still be responsible for taxes, insurance, utilities, repairs/maintenance and possible a host of other expenses.  Plus you can end up overspending and losing your shirt.

Finally, you have to have the proper investment strategy in place.  Although real estate has historically been a strong hedge against inflation, you always need to consider your own local trends so you can properly leverage your investments to realize a strong ROI. 

Benefits of Investing in Stocks

Unlike real estate, this is an investment that can be essentially placed on autopilot.  Aside from keeping an eye on your portfolio for rises and dips, you can leave the management and operation of each entity up to the professional staff.  You own a piece of each company without having to work for it.

Even with the Great Depression and other scares that we have witnessed over the last century, stocks have historically proven to be the best return on investment for those who hold on through the tough times and invest their returns properly.

Additionally, it typically doesn’t take a huge upfront investment to get involved in the market, and this is very beneficial for those who don’t have a lot of cash on hand.  As long as you choose the right companies, earnings will continue to increase.  Selling your stocks is also infinitely easier than listing a property or land for sale as well.

Downside of Stocks

On the other hand, the greatest benefits of stocks can sometimes be the most detrimental weaknesses.  For example, though you do not need to actively invest sweat into each company, you are also leaving your finances in the hands of a management team that dictates how things operate.

Therefore, if business takes a nosedive so do your stocks.  Some will recover while others may crash and burn.  Also, this can be a very emotional game.  Especially for those who are getting closer to retirement, the couple scares that we have witnessed in the last decade caused many people to pull out at huge losses.

Finally, stocks can be a lot more unpredictable, especially if you are jumping on the bandwagon of rising trends or promising starter companies.  Though some may end up being a homerun, you are always listening to the speculations of gurus or your own gut feeling.  Alternatively, real estate can typically be more accurately measured.

So...it's important that you take the time to assess the investment opportunities that are available to you before making any decisions.  It is important to look out for your financial future and well being, and I'm here to support you along the way.

If you need more information about how you can get started investing in real estate or land, and want to discover the options available in the area, take the time to contact me today.  

rhonda@rhondasrealestate.com

3 Things To Consider Before Listing As FSBO

If you’re looking to sell your home in the near future, you may feel inclined to list it as a For Sale By Owner (FSBO) before working with a Realtor.  For many, this is considered one good way to cut back on costs and possibly earn a little more profit on the sale. 

However, there are certain aspects you may want to consider before going down this path.  Statistically, over 80% of FSBO’s end up being listed with a Realtor at some point.  Therefore, it pays to take the time to fully assess whether or not this is the right plan of action for you.

Properly Marketing Your Property

First of all, listing a home for sale can be a very time consuming and difficult process.  Unfortunately, this typically is not as easy as posting a sign in the yard and setting up a classified ad in the local newspaper.  There is certainly a lot more than meets the eye.

For instance, many FSBO websites will tout that you can obtain a wide exposure to buyers nationally, but this pales in comparison to the results that you can expect from big named sites like Realtor.com, which only agents can post to.

Next, your agent will have a lot of expertise with implementing online real estate marketing strategies that will gain you a ton of locally targeted searches.  And in fact, nearly 90% of all searches for real estate related inquiries start online.

Realtors will also have a strong network of both agents and buyers that they work with on a regular basis.  This is a business where it pays to network.  More contacts equals greater exposure.

Asking Price & Showings

For starters, a lot of FSBO’s will start at the wrong asking price.  This is by far one of the most important factors that goes into marketing your home, so you want to do this properly off the bat.  But, without being fully invested in your local market and understanding the current trends, it can be difficult to price the home accurately.

As alluded to in section one, selling a home can be a lot of work.  Most individuals these days have to juggle a full time job, family obligations, recreational activities, household chores, etc.  Where do you find the time for fully investing into the sale as well?

When the opportunity would arise for interested parties to view your property, you would need to schedule individual showings, open houses, inspectors, appraisers, etc., while also trying to stage and maintain your property’s appearance.  Miss out on a good opportunity for matching schedules and you can quickly lose interest.  

Negotiations & Contracts

If you get to the point where you negotiate with a buyer, it is much more difficult to handle this aspect without a qualified agent.  Selling your home can be a very emotional undertaking, so it is easier to set unrealistic expectations, or to even concede on more than necessary when you don’t have a 3^rd party buffer.

During most real estate transactions, both the buyer and seller will typically have a set of concessions and contingencies.  For a majority of buyers, they will expect to have some type of a financing, inspection and/or termite contingency. 

This is set up for their protection, in order to complete their due diligence on the home before moving forward to closing.  If other issues are found, this may even been grounds for further negotiation or eventually walking away from the deal.

Or you will be expected to lower the price, fix the issue or offer a concession on something else in order to alleviate the problem.  Likewise, you want to ensure that the buyer is not overstepping their boundaries or that you are pressured into giving away more than is reasonable. 

In summary, it’s worth taking the time to carefully consider these 3 areas before making any final decisions.  If you still decide to take the FSBO route, I sincerely wish you great success.  Also, please feel free to share this information with a friend and to bookmark this page for future reference as well!