After years of working in the real estate business, I’ve learned one of the most important things a buyer needs to know in order to get the best price on a home.  There is only one reason why people look to buy foreclosed homes, they think they will get a great deal for the home.  Just like anything you buy, say it’s a new car, new furniture, etc. there is one solid piece of information that is like gold when looking for the best deal.

The solid gold information you need to find when searching for a great price on a home, is knowing the seller’s current situation.

Once you know and understand that the seller is desperate to sell, you are at the greatest advantage when you start to negotiate.  An example would be a recent divorce or a spouse that passed away.  Both of these situations have lost half their household income and, usually, the one income remaining is not enough to support the mortgage payments, along with all their other bills.  Believe me, just about every mortgage application I take needs both incomes to approve.

A seller in either one of these situations usually wants to get rid of the home fast, because it helps them to move on from what trauma they just went through.  Price isn’t on their mind, time is more important at this point.

Remember, if you really want a good price from a seller in this situation, then you need to think business and don’t let your emotions take over.  It’s in our nature to feel bad when traumatic things happen to good people, but you just want to buy a good home at a good price.

This kind of mortgage advice can come in handy when looking to buy a home.

The home value is determined by similar homes that have recently sold in the area.

Here is an easy example:

The subject property, meaning the home you are looking at buying, is your standard 3 bedroom, colonial, with about 1500 square feet. Now, there are 2 other similar homes on the same block, both have 3 bedrooms, are colonial, and about 1500 square feet. One of the homes sold for $150,000 and the other sold for $160,000 just a few months ago. These two homes are called comparables.

These two comparable’s give you a good indication that the range in value of the subject property is $150,000 – $160,000.

Now, that was a basic example and in reality, comparables don’t come that cut and dry. Lenders today are getting tighter and tighter with their guidelines, when it comes to the appraised value. I am seeing most underwriters (underwriters are the people that decide whether your loan should be approved or denied) asking for recent home sales within the last 6 months. Going out as far as a year may not be acceptable, in some cases. If the property is located in an urban area, the comparables to use should be within 1 mile, or so.

Visit the nations #1 site for foreclosures and find homes for half the price.

There are many more factors that go into finding comparables, but the important factors that pull the most weight are these:

- Similar type of home. (compare a ranch style to a ranch style)

- Similar square footage. (don’t compare a home with much more than a couple of hundred square foot difference)

- Date of sale. (today’s lenders are looking for sales no older than 6 months and 3 months for really strong ones)

- Distance from the subject property. (try to stay within a mile, but if you have to go farther out that’s ok too)

First time home buyers will find this information very valuable, since most first time buyers don’t understand if they are making a good offer on a home or not.  It also helps to work with a local real estate agent to help with this.

Congress plans to extend this credit into next year and also add a new credit of $6500 for existing home owners.

If you have been a homeowner for 5 years or more, you may qualify for the $6500 on a new home purchase next year.

Read more…

By far, this no down payment mortgage loan has become very popular with first time home buyers this year.  Specifically, Wisconsin has many areas in which the property you are looking to purchase will be eligible for this program.  Wisconsin mainly consists of rural areas.

Here is a direct link to a map that shows the areas of Wisconsin that are eligible for a rural housing loan.
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp&NavKey=property@11

The rural housing loan does apply throughout the nation, but you have to find the site that pertain to your state.  Each state is going to have different areas that allow eligibility.

To learn more about the details of the Rural Housing Loan, go to no down payment mortgage loans in Wisconsin.

If you’re considering obtaining a mortgage loan or refinancing your current mortgage, it is most likely that you’ve thought about seeking the assistance of an online mortgage broker. While the task appears to be quite easy, you should follow some valuable tips in order to ensure you don’t come across any hitches in the process.

The first factor that you must take into account while looking for an online mortgage broker is to ensure that the broker is a representative of numerous reputed lenders and provides a wide variety of loan products. It is quite crucial to ensure the online mortgage broker is not simply an agent of the lender undercover. If the mortgage broker is the representative of only one lender or bank, it is quite improbable that they would provide you the refinance or mortgage option that is most suitable for your requirements.

Verify the qualifications of your online mortgage broker. Are they member of any associations? Are they recommended? For how many years they have been doing their business? Experience is the most important element when it is a question of mortgage lending and locating the right loan product to suit your necessities. You should always wish to ascertain that your mortgage or refinance is dealt with by somebody proficient, somebody who understands what they are performing.

Just confirm if your mortgage broker is asking for a fee. Some online mortgage brokers ask for a fee simply against providing their services, whereas other brokers don’t. If you don’t think that the broker deserves the additional cost, you should stay away from brokers that ask for an upfront fee.

When your broker gives you a referral, you should request them for an evaluation just to be sure that you are receiving the loan that serves your purposes most effectively. The evaluation should incorporate upfront fees and recurring fees and must be performed on the basis of your actual borrowing amount.

You must confirm that the online mortgage broker would stay around to provide services following the closing of the loan. Precisely, what services are offered by them? If there is a disagreement with the lender, would the broker assist you to sort out the problem or you have to do it single-handedly?

When you visit your broker, just don’t forget the aforementioned advices. Your broker would understand that you’re a well-informed consumer who is serious. Realizing which questions you should pose would help you become convinced and well organized.