That’s a good question. Let’s look at it.
With the current market of so many homes “upside down” or “underwater” in their mortgage, meaning your mortgage balance is higher than the value of your home, maybe starting out with a larger downpayment might not be a bad thing. Especially in a market like this if you made a larger downpayment and you are in an equity position and you hit a bump in the road such as an illness or job loss, you won’t be hurting so bad because you can tap into the equity if you need to keep your head above water until the tide turns. How awesome would that be? As long as you don’t use your home equity as an ATM card, you shouldn’t have a problem. It’s called discipline.
Check out the article in full:
Well, according to the famous Robert Kiyosaki of Rich Dad, Poor Dad fame your house could be either. If you have a rental property that puts money in your pocket every month (cashflow) then you have an asset. However, if you own your home and you have to pay the mortgage every month meaning money is coming out of your pocket then your home is a liability. This is a great question to ask yourself as we are in the current economic times that we are in. If you own a home and are not facing foreclosure or a short sale, this may be a good question to ask and a good strategy to consider — If you have an extra room or a basement or an attic that you can turn into a room you could charge for and use that money to pay a portion of your mortgage then you have just created for yourself and your family an Income Property. Cash will flow into your home and you have less of a mortgage payment to make. How awesome is that? Hmmm!
In 2008, high cost area loan limits were established in certain counties on a temporary basis. These temporary loan limits were established as part of the government’s 2008 economic stimulus package. Effective October 1, 2011, these loan limits will be lowered significantly by as much as 14 percent nationwide. According to fha.gov, it doesn’t look like Atlantic County, NJ is on this list of certain counties that may be affected by this change. Northern NJ counties include:
Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth,
Morris, Ocean, Passaic, Somerset, Sussex, Union
for the list check out: http://www.fhfa.gov/GetFile.aspx?FileID=134
If you live in Atlantic County, NJ, I would suggest calling your local mortgage consultant or you can check out
www.brianmccartysmc.com. Brian of Superior Mortgage is a great source of mortgage information in Atlantic County, NJ.
That’s right it looks like Atlantic City, NJ will be the home for Veterans literally when veteran Joe Astick finishes the rehab of the former site of the late Gilda Radner, lovingly named Gilda’s Club, will provide a home not just a shelter for many deserving veterans. Many may remember Gilda Radner of SNL fame who played the funny character, Roseanne Rosanna Danna. She had a great life with hubby Gene Wilder, funny man himself who was hilarious in many movies including Blazing Saddles and Silver Streak with the late Richard Pryor.
Mr. Astick is giving back in a big way by making it his responsibility to make sure that veterans in this area have a place to call “Home”. What a wonderful legacy for Mr. Astick to leave.
Check out how Mr. Astick is helping – Thank you Mr. Astick.
It would help but is that a request that sellers want to make? Well, let’s take a look. Real Estate Agents who are working with buyers should want to know what a buyer is qualified to buy. Why? Because then the agent will know what types of houses and in what price ranges to show those homes. What good would it be for an agent to run home buyers from home to home looking at different properties and then when the buyer finds the home that they want the next question is well, are you pre-approved for a home at this price? Huh? Well, I don’t know what is that. Well, the agent will have dropped the ball on this one. It is always best to bring your buyers in for a consultation for two reasons: 1) to have a meeting with your buyer to find out what their wants and needs are in looking for the home of their choice. 2) to find out what they are qualified to buy — what is their number? What amount are they pre-approved for? To answer the question: When you know this number along with the wants and needs of your client, you can serve you both better and find them the home they can afford and do it much quicker. Be prepared. You won’t be sorry.
Enjoy Your Fourth of July!
Should lenders (large and small) consider following the mortgage model of Habitat for Humanity. They too originate the mortgage of the homeowners as well as hold their homeowners hand and make the passage way to successful home ownership possible for their homeowners and their default rate is 2 percent. This is in their Dallas office but according to the article (link below), this also holds true for most of their office across the country. This is a great thing but is it a good thing? It’s great because this type of hand holding allows Habitat for Humanity’s home owners to keep their home by staying in constant contact with them and even setting up some systems to help them through the tough times.
Should lenders do this also? Is it fair to ask? Is it fair to expect this type of treatment? After all, first time home owner seminars are offered all over the country by banks and other home agency organizations but they still don’t have the same success touted by Habitat for Humanity? Why? One could argue many reasons but ultimately the responsibility falls upon the home owner. Everyone should take first time home buyer classes and get educated and really understand what it really means to be a homeowner and decide if they are ready for the responsibility? What do you think?