Moving to Western New York?

Have you ever relocated for a job, family, school or any reason at all?  Then we are sure you know how hard it is to know exactly what you are looking for without having ever lived (or even visited in some cases) in that area..  And if you have never relocated, you may not know what to expect or where to start!  We here at Nothnagle REALTORS are here to help.

It is always a great first step to create your own "wish list" that includes things you like about your current home along with things you want in your new home. There may be things such as: four bedrooms, a master bath, gas oven, and an in ground pool. It may also be best to break the list into "must haves" and
"would likes" so that you know where you are willing to compromise.

Your next step would be finding a REALTOR that suits your needs and can best assist you for what you are looking for.  Nothnagle can help you with that.  We have a whole relocation team that specializes in getting you matched with an agent to best assist you.  These agents have worked with people moving into the area before so they know what to expect.  They know their areas and can answer any questions for you that you may have about schools, things to do, taxes, and everything in-between.

So don't hesitate!  Contact one of our Nothnagle Realtors Relocation specialists today!

Are you pre-approved?

If you are just starting to look for a house, you may have had someone ask you that very question.  "Are you pre-approved?"  Pre-approved?  For what?  Getting pre-approved is a great first step in the home buying process with a lot of benefits to make your path to a new home a lot smoother.

Have you already started looking at homes or want to but aren't sure of what price range to look at?  With a pre-approval letter they let you know how much of a home you would be able to purchase and afford.  That way you are looking within your limits and don't fall in love with a home that you wouldn't be able to purchase.

But that isn't the only benefit...there are quite a few.  You can use it as a negotiating tool as well.  When you put an offer in on a home and your agent lets them know you are pre-approved it will give them the assurance that there is a great chance you will have the funds available.  Which is great for a seller knowing the likely hood they would get to closing and have to start all over again is minimal.  It also can reduce your closing time.  You won't be putting in an offer and then going to see about approval.  Once you gain acceptance from the sellers, your mortgage broker can send an appraiser right out!

So if you are looking for a home and have yet to get your pre-approval...why not try one of our mortgage vendors?

Loan to Cost (LTC)

In an earlier blog we talked about LTV (Loan to Value) which talked about how the relationship between the total amount you are borrowing to the appraised value of the property.  Well today we will be talking about a different relationship between the total amount of your loan to the cost of the property.

Most often used with commercial properties, LTC compares the amount you are wanting to borrow to the cost of the project itself.  For example: If you thought that building a new restaurant would be a great idea and the land was going to cost you $50,000 and then total construction costs were going to be $550,000 then your total cost would be $600,000.  Well, you've been saving for a while and you have $90,000 to invest in your dream.  This means that you still would need to borrow $510,000 and your LTC would be 85%.

There are many factors  as to if a bank or mortgage company would approve a LTC of that percentage.  One thing that they do look at is location.  Not just is it in a good area but how many of what you want to build are there already?  If you are interested in making your dream happen...contact one of our mortgage partners.  In the meantime - check us out below!

National Open House Weekend!!!

Did you hear?  Do you know what is happening this weekend?  It's National Open House Weekend!!!

National Open House Weekend is the BIGGEST 2-day housing event in the world!  Through Nothnagle REALTORS alone we are going to have well over 400 open houses.  Even though we have had a great start to 2012, we expect this weekend to be the perfect kick-off to one of the busiest spring buying seasons we have ever had.

That is great news for both buyers and sellers.  In western New York we still have low interest rates on mortgages and  great affordability so don't miss out!  Even if you aren't quite in the market to purchase a home yet or even if you are interested in selling, get out to an open house.  That will give you a chance to meet an agent that would be able to assist you.

Be sure to keep up with us by liking/following us and we look forward to seeing you this weekend!

3 Reasons to Buy Now!

Are you on the fence about buying a home? Not sure if now is the time? Here are 3 benefits as to why buying a home is a GREAT idea!

Equity Building
Of course there are many different variables when it comes to a home loan, but rates are still really low making it easier for you to build equity faster. One thing home buyers may choose to do is go with a shorter term (such as 15 years). This allows them to pay off the loan sooner and with low interest rates, some are even opting to pay more on their monthly payment. When you combine all of that you are building equity in your home faster and saving a considerable amount on interest!

Tax Deduction
Even though many of you already know, the taxes you pay on your home are actually deductible when it comes to those dreaded taxes. This mostly applies to your first home and a vacation home but you can actually find detailed information about it by clicking here and going right to the IRS website!

Pride
Remember walking into your friend's home right after they bought it? What about helping them paint rooms and remodel the bathroom? You may have thought, "Wow...this would be so fun. I could change things and it would be mine! I could do whatever I wanted!" Well now is your chance! Inside to out, there are many things you can do to make a house a home and take pride in every aspect. So call Nothnagle REALTORS today and we can help make it happen for you!

New FHA Rule

Have you heard about the new rule for mortgages insured by the Federal Housing Administration?

Starting on April 1st, 2012 the FHA will no longer be insuring mortgage commitments to borrowers that have more than $1,000 in ongoing credit disputes in the file. What this means is that you will have to either pay off the amount or enter into a payment plan for the balance in order to qualify. Just saying you have set up a payment plan isn't enough though. The plan has to be documented with and submitted to the FHA and you have to have made at least 3 payments.

There are some exceptions though. Of course if it's listed as fraud/identity theft then that will not count against you. Also, any disputes that are older than 2 years will not be held against you either.

The FHA has said that part of the reason is because their reserve, which is mandated by congress has fallen bellow the limit (which is why they will also be increasing the insurance premiums on the 1st as well).

So what are you thoughts? Oh....and as always....

Discount Points

The name alone sounds enticing doesn't it? I mean, who wouldn't want a discount...ESPECIALLY on the largest purchase most of us will ever make! But what exactly are discount points and how do you get them?

Discount points (also know as closing or mortgage points)are a type of prepaid interest that mortgage borrowers can purchase to lower the amount of interest they will have to pay on subsequent payments. Just like with origination points, 1 point is equal to 1% of the total loan. So, on a $100,000 loan each point would be equal to $1,000. Each point you pay can lower your interest rate from 1/8 to 1/4 of a percent. Another great thing (as if lowering your interest rate wasn't enough) is that discount points are also tax deductible in the year that they are paid.

So give one of our Mortgage Specialists a call!

Mortgage Origination Points

Especially if you are a first time home buyer you may be sitting there, reading this, and thinking to yourself...."Mortgage points? Who's keeping score?" Well hopefully this will clear it all up for you!

To start with let's explain what a mortgage point is and don't worry...it's not that complicated. A mortgage point is a fee based on one percent of the total mortgage. So if your mortgage amount was $100,000 then each point would be valued at $1,000. There are two different types of points though.

Origination Points are used to pay for the costs of getting the loan in the first place. Typically it is a fee to compensate the lender or loan officer for evaluating, processing, and approving the loan. Origination points are also not tax deductible.

In the next post we will be talking about Discount/Closing Points. Until then...check us out below!

What is a Short Sale?

Short sales can be a great deal for a buyer but a stressful situation for a seller. Not to mention that the short sale process can be a complex transaction altogether!

What makes a home sale a short sale really are two factors:
-The house is valued less than the owner owes (also known as "underwater")
-The homeowner must have a qualified hardship

But what exactly makes a hardship qualified? "I owe more than my house is worth? Isn't that alone a hardship?" The answer to that would be a no. What makes it a hardship is an event that will make it hard for the home owner, whether it be now or in the future, to pay the mortgage.

Here are some examples:
-Job Relocation
-Medical Hardship
-Business Failure
-Death in the Family
-Divorce/Speration
-Loss of Employment

Of course, each situation is different so please consult a professional (like our Mortgage partners) and speak with them!

First Time Buyer Incentive for Rochester

For the 20th year in a row, Rochester will be holding it's "City Living Sundays" event starting on the 18th (with another on the 25th). At both of these events, the city will be offering advice to first time home owners on neighborhoods, financing, and the market.

The events will be attended my Realtors, Lawyers, the Greater Rochester Association of Realtors, as well as lenders and other professions. On top of that, you will be able to find seminars on both home owning and finances.

Agents will be showing their listings in the $45,000 to $200,000 range on Sunday with the Landmark Society of Western New York holding bus tours of the areas the Saturday before. Margot Garcia, senior community housing planner for the city, stated that 62% of homes that had an open house last year sold!

How the Mortgage Settlement Affects Housing

In a previous post we addressed the National Mortgage Settlement that involves 5 banks (Bank of America, JPMorgan Chase, Ally, Wells Fargo, and Citigroup) and gave a summary of where the money was going to be allocated to. In this post, we will take a look at how the settlement will affect the current housing market.

There are many different thoughts on how this settlement will actually impact the market. Some think that this may be a little too late. IHS Global Insights states, “Like many previous plans to stem foreclosures, this agreement will help at the edges. The problem is too big for it to have a large impact, however…This agreement will help the housing market move ahead in 2012 in a small way. But it is hardly a game changer.” But how does this impact houses currently in the midst of the foreclosure processs? "The settlement helps the housing market in the long run because it allows banks to proceed with millions of foreclosures that have been stalled. Many lenders have refrained from foreclosing on homes as they awaited the settlement.” says Mark Vitner, a senior economist at Wells Fargo.

Oh course both IHS Global Insights and Mark Vitner are looking at this from a National standpoint where some states are seeing drops in housing prices as much as 11.3% (Illinois) over the past 12 months whereas New York state is seeing an increase of 1.7%. What are your thoughts on how this will affect Western New York or even the state as a whole?

The National Mortgage Settlement

Let's take a quick look at the National Mortgage Settlement that was passed last week.

The National Mortgage Settlement is a $25 billion dollar settlement passed by the federal government and 49 (not in Oklahoma) of the 50 states. Five banks are involved (Bank of America, JPMorgan Chase, Ally Financial, Citigroup, and Wells Fargo) The whole idea behind it is to help reverse the effects of bad loans and the issues created in the foreclosure process.

Here's where the money is headed:

- $3 billion to a National Underwater Mortgage Refinancing Program. This will help those who are current on their payments but owe more than their homes are worth.

- $5 billion in payments to both State and Federal Governments. Some of this money will eventually be split and end up in the hands of people who lost their homes to foreclosure to one of these 5 banks.

- $17 billion to foreclosure relief efforts. This is a minimum amount to be given collectively by the listed 5 institutions to help short sales, principle reduction, homeowner transition programs, and other programs.

We will talk about the impact the settlement will have in a future post but for now...what are your thoughts?

Mortgage Preparation

Here are some tips that will help you as you prepare to apply for a mortgage!

Check your credit report! The better your score, the better your chances are to not only get a mortgage but to get a great rate as well...especially with rates as low as they are now. You will want to get a copy of your credit report from the three main agencies (Experian, Equifax, and TransUnion) and read over the reports. Correct any errors and try to resolve any issues before applying.

Be prepared! There are certain documents you will want to have ready when you go to apply for a loan. Things like your last two pay stubs, W-2 forms, tax returns, and bank statements. Don't wait for them to ask for them, have them ready! Another great idea is to scan any documents the lender asks for so you have an electronic copy that can be easily sent over if requested.

How much can you afford? Your lender will help you with this and can tell you how much you qualify for but you want to also go within a range that is most comfortable for you. Make sure to keep in mind any of the extra expenses that may come up when purchasing a home.

What is Loan to Value?

What is loan to value or LTV? Well if you're interested in getting a mortgage, LTV is one of the key factors used in the approval process. Here we will teach you how to calculate LTV and tell you what it's all about!

To put it simply, loan to value is the amount of money you plan on mortgaging versus the professionally assessed value of the home. For example: If you purchase a home that is worth $170,000 and your mortgage is $130,000 that means your loan to value is 76%. It is a figure that is really easy to figure out as well! Grab a calculator (or your phone) and type in the value of the home. Now, divide that by the amount of your mortgage. Finally multiply by 100 and you've got your LTV!

But what's this all mean to me?

Well, finding out the loan to value can benefit you in many ways. From a mortgage, to refinancing, equity loans, and more! When it comes to mortgages the loan to value percent is on of the key risk factors looked at. The amount that a lender would have to absorb if a borrower were to default and go into foreclosure increases as the LTV percentage increases. A lender may even require a borrower to purchase mortgage insurance (also known as a mortgage guarantee) if the LTV is too high. That will protect the lender on some of the loss if the borrower defaults.