Mortgages.. What do I Need to Know?

Buying a home is all about knowing what you can afford. This way, you can enjoy the home your in and not work to pay your mortgage. For anyone who hasn't purchased a home in a while, the mortgage business has changed drastically. What you could do 3 years ago you can't do now, and what you could do yesterday you may not necessarily be able to do today. Here is a rundown of some mortgage basics that you should know if you are thinking about buying:

1. There are two main types of mortgages: FHA and Conventional. A conventional loan is 20% down and no mortgage insurance. FHA loans are 3.5% down (may increase to 5% down), and has mortgage insurance included in your payment. Most all loans are FHA loans.

2. Minimum credit score needed is a 620. If your close, mortgage brokers can do a credit scrub for you, which will show you what you need to do to get your score up.

3. You can mortgage up to 3% of your closing costs. That means you can include additional monies in your mortgage to reduce your total amount due at settlement.

4. USDA has a NO MONEY DOWN mortgage for qualified buyers, and is great for low income families, or people short on cash. There is no money down, and no mortgage insurance. It is only available for purchases in rural areas.

5. There is a construction loan available called an FHA 203K. This allows you to purchase distressed and bank owned homes without having to make any repairs prior to settlement. This loan requires a licensed contractor, and allows you to mortgage money to make upgrades and repairs to any home.

6. Your approval amount is based on your debt to income ratio. Car insurance, cell phone bills, and utilities do not count as debts, so be careful when you get your pre-approval letter that you budget for the amount you can actually afford.

7. Not all condo/townhome associations allow FHA mortgages. Check with a Realtor or Mortgage Broker to find out if they are approved before you begin looking.

If you are thinking about buying a new home, the first step is to contact a Realtor. Any good Realtor can provide you with an estimate of what you can afford, as well as estimate closing costs and payments on a home to give you an idea of what it takes to afford the home you love. They also have a network of mortgage professionals that they can call to get you pre-qualified. It's one-stop shopping and makes the process much smoother.

Realtors are also familier with appraisals, and what it takes to get your mortgage appraisal to be clean and at the price you need it. There is a lot more about appriasals which you can read in a future blog, but the long and short of it is to contact a Realtor so they can provide you with the information you need based on a specific property.

There is much more to the mortgage world then what I have posted here and any questions or concerns when it comes to obtaining a mortgage should always be presented to a mortgage professional. I work with many mortgage brokers in the area and can refer you to someone I know and trust will provide you with the level of service I feel my clients deserve.

If you are thinking about buying or selling, or not sure if you can, email me at abeich1219@gmail.com and I will go over some information with you. Give me 5 minutes, you will be glad you did.

Spring is here- have a yard sale!

If you've thought about selling your home, but have no idea where you want to go- and where you will put all of your stuff- have a yard sale! Clean out the attic, get down in the basement, and get those old tools out of the garage and get rid of them! You know what they say, one man's trash is another man's treasure.

The weather is getting nicer, and there are avid yard sale goers out there getting ready for the season. This is the best way to get rid of some items you may not necessarily need anymore, plus it will put into prospective how much "stuff" you really have. Plus its a way to get the whole family involved. Your teaching your children the value of items, and teaching them about money. Let them play cashier and help them count back change.

Another way to get rid of old stuff, there are websites that will buy your old electronics. You input the condition of them, and it tells you how much money they will pay you for it. They will even take old broken electronics and properly recycle them for you. Try out http://www.gazelle.com/.

All of this will help you clean out the junk in your home and help you get it ready to sell. Here are some tips to get your home "show ready" to make the most of every showing.

1. Clean up the clutter. Make sure all the toys are put away, beds are made, and clothes put away. Everything should be surfaced cleaned.
2. Create ambiance. Play some light music, light candles that smells good, and leave the lights on. This will appeal to the senses of the buyers to try and help them feel at home.
3. Don't linger around. Buyers feel uncomfortable being in your home if your hovering. They will not be able to see themselved living there if they are distracted by you watching their every move.
4. Remove personal items as much as possible. It's hard for a buyer to feel at home when a huge family portait is hanging in the living room. You want to take yourself out of the picture and allow prospective buyers to try and fill it with their own belongings in their mind to see if the home works for them.

These are just a few tips, for more information on this topic and more visit http://www.century21.com/sellingadvice/. And as always, email me at abeich1219@gmail.com with any questions.

What can $8,000 do for you?

With the tax credit time frame windling down, some people may be thinking that they are too late to take advantage. YOU'RE NOT!! The key is you have to work with the right Realtor who knows how to handle the market. There are a lot of properties out there that are bankowned and shortsales, and if you want the tax credit you have to act fast.

Looking at anything that is a short sale is most likely a waste of time as they typically take approximately 60-90 days to close. An aggressive agent might call ahead of time and see if maybe it is possible, as they may have had a buyer that dropped out last minute and the bank is ready. Same goes for a bankowned/foreclosure property. All it takes is a little legwork.

Haven't been pre-approved yet? No problem! I work with mortgage brokers on a daily basis that can get you pre-approved an hour before our appointment. I have dealt with clients that had needed a credit scrub to get their credit up to par, and now they will be $8,000 richer after April 30th. It's a beautiful thing.

So, if your thinking about how $8,000 can change your life, (or even $6500 for you second-time homeowners), email me at abeich1219@gmail.com and let me show you how we can make it happen. You need someone on your team that cares just as much about your goals as you do, and I can promise you that your needs will always come first with me.

Finding the Right Property

Buying a home is like something you have never experience before. It's a process that is so rewarding, yet can cause ulcers for some just thinking about it. Maybe you've bought something before and didn't have such a great experience. Maybe you have never bought but you've heard horror stories from friends and family members. Every transaction is different, and every experience will be something you will tell to your friends and family in the future. But buying a home is nothing to be scared of! You just need to know what to expect, and having the right people to guide you through the process will make everything run a little smoother.

While there is no crystal ball to show you whether a transaction will happen without a hitch, experienced Realtors know what to expect generally, and can help provide you with "worst-case scenerios" to try and shed some light on the process. I myself have experience transactions that went smoothly, and some that ended not so good. The biggest thing to remember is that it's not over until your walking away from the settlement table with the keys in your hand.

Once you walk into a home, you will know if this is the home for you. I am trained to show you roughly what your total estimated closing costs will be based on the homes sales price, as well as the estimated monthly payment on the home. I can also show you how much of a home you can afford based on your income and debts to help provide a peice of mind that this home really is for you.

So, if you are thinking about buying, whether it's now or in the near future, email me with any questions you may have, I am more then happy to help.

Government Incentives are Here for the Taking

With the economy in a recession, the government has put into play a lot of programs to help homeowners, and people looking to be homeowners. There are options out there for people who are struggling, and it doesn't hurt to try. If your experiencing a financial hardship with your mortgage, here are few tips to try:

1. Loan Modification: the bank may be able to modify your loan to make your payments easier to handle. Just as when you bought the home your mortgage rep figured how much you could afford based on your current income and debts, they will re-evaluate your situation and make your payments more affordable. The process is long, but starts with a phone call. Call you bank and find out if you can qualify for this program.

2. Short Sale: an option if living in your home is just not working out for you. A short sale means that you owe more money then your home is worth, and something has happened in your life to change your situation that does not allow you to afford the home anymore. This is a lengthy process, but with the right tools you can get through it. It starts with listing your home at "market value" regardless of what you owe. Your Realtor will gather all of your financial data and start to prepare the short sale package. Once an offer is received they will work with your bank to get you approved. Some offices work with attorney's to get this negotiated as well so ask your Realtor. This does affect your credit negatively, and you won't be able to buy again for 2 years, but for some this is the only option to be able to stay above water.

3. Deed in Lieu of Foreclosure: if you have completely lost your income, and can't afford to stay in the home another minute, you can ask your bank to do a Deed in Lieu. You will basically deed your property to the bank and they will take over. It affects you just as negatively as a foreclosure, but shows up as voluntary action on your credit report, to future creditors it looks better then an involuntary action.

4. Foreclosure: this would be a last resort. You simply walk away from the property and let the bank takeover. If this is something your thinking of, talk to a Real Estate Attorney to get more information.

5. Bankruptcy: maybe you want to keep your house but get rid of all your other debts. You can try filing for bankrupcty. Talk to a bankruptcy attorney to see if this option is right for you.

Whatever you decide to do, you will do it because it works for you and your families situation. Start with a phone call to the bank and find out what options they can provide you based on your specific situation, and always speak with a professional to find out the exact ramifications of each decision.

If you want to see if a short sale will work for you, email me at abeich1219@gmail.com and I will provide you with a complimentary CMA and tell you what the short sale will do for you. I work with a short sale attorney to make the process as smooth as possible.

For more information on the governments Making Home Affordable plan, visit http://makinghomeaffordable.gov/.

Thinking about Selling? Let's Talk Numbers

There is speculation out there that your home needs to be in tip-top shape in order to sell. I say, let me show you what it would sell for in the condition that it is in now, and then you can decide financially if it is worth the money to add a few upgrades here and there. The main thing to remember is that what looks nice to you may not attract your buyer. Sure, granite counter tops and brand new carpet look great, but it isn't necessarily going to sell your home, or give you the return you might be looking for.

The example I always tells my sellers is this- imagine that your house and a house down the street is for sale, and yours is priced $10,000 more. While a buyer may think that your home is nicer because of the crown molding, the new carpets, and the upgraded kitchen, it is out of their price range. SO they go with the cheaper home down the street and decide to make their own upgrades once they move in.

Of course the opposite could happen as well. That is why it is important to sit down with a Realtor before you decide to make any upgrades and see if it will actually be worth the money in the end. In today's market, you best just listing the house the way it looks now, and spending the money in your new. Volume is up and homes are selling, price your home realistically and it will sell.

If you want to see what your home could be worth in today's market, email me at abeich1219@gmail.com. There is no obligation to list your home. My goal is to show you the options that are available to you, then you make the best decision for you and your family.

Common Objections to Buying & Selling

1. I’m going to wait. The market is too bad and will only get worse.


Wait for what?! Interest rates are low, home prices are realistic; there are buyers buying and sellers selling. If you wait to buy, a 1% increase in interest rates results in $10,000 worth of buying power!

2. I don’t think I can sell in this market.
No matter what the market conditions are, there is always an opportunity to sell. Now more than ever is a great time to buy because of low interest rates and realistic home prices which means there are A LOT of buyers out there. What this means for us is that there is someone out there looking for a home just like yours! As long as we are competitive, your home will sell.

3. I can’t buy now, there is too much uncertainty.

Sure the economy may seem scary right now, and the uncertainty of what will happen next can keep you awake at night. But rest-assured there is hope! I will provide with you up to date market information, current government stimulus programs and the ease of mind to know what is going on in the world around you to make the best decision for you and your family. As your Realtor Consultant, I will tell you what you need to hear, not what you want to hear, and I will be there to help you no matter what path you choose.

4. I don’t have the money to make a move.

The government has implemented some great stimulus programs to help stimulate the economy. There is opportunity at every corner, it just takes the right professional to guide you through the clutter and provide you with the facts that best pertain to you and your personal situation. I will provide you with the most current information available to make all of your Real Estate dreams come true!

5. I don’t think my house is worth anything

Let’s put hard facts to that assumption. I will provide you with a current market analysis showing you EXACTLY what your home is worth in today’s market. I will also provide you with a seller’s net sheet so you can see what you will net from the sale. If the numbers work for you, then you can sell! If not, at least you have peace of mind knowing exactly where you stand in the market.

6. I just want to rent for a couple months so I can save some money.

Renting will actually cost you more money in the long run then you think. In order to rent a property the following things must occur: a credit check and, pay security deposit + 1st month’s rent. In order to buy, we will check your credit to make sure you qualify, and then run numbers to see what you qualify for. Most likely, the closing fees and/or down payment will be similar to paying a security deposit and your first month’s rent. Aside from that, there are many programs available to reduce your costs, AND the tax benefits of home ownership provide you with savings at tax time too! I will provide you with your options so you can make the best decision based on facts not misconceptions.

7. I don’t know where to start.

Start with me. I have a network of professionals that can assist you in every aspect of buying or selling a home. I will provide you with the guidance you need to make all your Real Estate dreams come true!

Achieving Excellance

As a first year agent, no one expected me to succeed. I went to Real Estate school in one of the worst markets since the 80’s. I was good at sales, had a marketing degree, and was in need of a change. I went through a week of real estate school, and I will tell you- it is a license to kill. An award-winning broker wanted me to work for her, and gave me all the tools I needed to succeed. A year later, I was given the Circle of Excellence Bronze Award at the Atlantic County Board of Realtors Luncheon. I can guarantee you will not find another agent who achieved such success in their first year.


For those of you that don't know what that means, I helped 15 families into their dream homes last year. There are 15 more families in Atlantic County who were given the opportunity to own their first homes, sell their existing homes and move up into something bigger, all because they gave me a chance to show them that their dreams are possible, even in a bad market. You just need the right tools, and the right person to guide you.

I am going to try to publish information that I have available to me, so that those of you afraid to ask can see that buying and selling homes in today's market is not impossible. The end of the world is not here, not yet. If you have questions, and want to see if your dreams can come true, email me at abeich1219@gmail.com, I'd be more then happy to help.