If the President Wants to Refinance, Should You Think About it As Well?


On August 7, 2013, President Barack Obama sat down with Zillow CEO Spencer Rascoff to answer housing questions from American homeowners. During the conversation, President Obama mentioned that he would probably benefit from refinancing his Chicago home. The president says that refinancing would benefit his mortgage interest rate, allowing him to save money on his monthly payments. If the president can save money on his monthly payments by refinancing, could you reap the same benefits?

How you could benefit from refinancing

By refinancing your home, you could switch out your current loan for a new mortgage that includes better terms. Take a look at these five ways a refinance could save you money in a variety of ways. Continue reading “If the President Wants to Refinance, Should You Think About it As Well?”

Preparing to Get a First Mortgage

Proper communication between buyer and lender will make home buying a successful one

Buying your own home can be a daunting task particularly, if you are a new home buyer. However, if it’s done in the right way, then it can be a rewarding experience for a secured future. It requires a lot of time and effort to collect the necessary details of the home that you’re planning to purchase. The process of home buying begins with deciding a price range that you can afford and prove to be successful if you’re able to make the down payment for it. Other factors that the lender will take into consideration before approving your home loan are your credit score, debt to income ratio, and employment record. Thus, if you can satisfy the requirement of the lender, you will be able to obtain your first mortgage and buy your dream abode. Continue reading “Preparing to Get a First Mortgage”

6 Things You Should Know About Short Selling

Ever since the market crashed back in the late 2000s, many potential
buyers and sellers are getting used to the term “short sale” or “short
selling.” To put thing short, this is a relatively complex process that
enables the bank and the homeowner to agree upon a home purchase/sale
price, which can lead to extremely low numbers. The catch, though? You
have to wait longer than the typical 30-day close date. In fact, it can
sometimes be longer than six months.

To help you learn more about short selling, here are some other tips that
you may want to keep in mind:

#1 Long Closing Time

As already stated, a short sale won’t be completed within a few days time.
Instead, plan on waiting at least three to six months at a minimum.
Since the bank has to get the approval, this relatively long process can
take a long time. Keep in mind that some banks can work a lot faster than
others. For example, your local hometown bank that does mortgages may be
able to get a price approved months faster than a corporate bank.

#2 You have to be eligible

As a seller, a bank won’t just let anyone do a short sale. Instead,
you’re going to have to meet certain requirements. This will include
being behind on your mortgage, meeting certain income requirements,
financial hardship and most of the time, you will have to prove that you
can’t afford the payments anymore. As you can see, it can be a long

#3 Get experience

Keep in mind that every real estate agent isn’t created equally. A
qualified real estate agent will harass the bank until they get answers
while others will just wait until the phone call is made. With that being
said, always make sure that you get the appropriate agent to help you
complete a short sale successfully.

#4 Not 100%

Just because your home is approved for a short sale, it doesn’t mean that
it’s going to be finalized. What you may find is that many short sales
will never meet the end, and it’s because of a few reasons. These reasons
can include impatient buyers, a slow bank or your home simply goes into
foreclosure due to missed payments. Whatever the cause may be, don’t have
your mind set on completing the deal 100%.

#5 Be careful!

A short sale can be a fantastic deal for those that are patient, but there
is one thing that you have to keep in mind. Many short sales could have
potential danger signs. Like any other home that you plan on purchasing,
it’s so important that you get the home inspected. That way, if anything
pops up before you purchase the home, you will be well aware of the

#6 How many lenders?

When most think of a short sale, many think that they are dealing with one
bank. This isn’t always the case. What you may find is that you’re
dealing with more than one bank, and if so, this is where the process can
get complicated. Before the process begins, try to find out how many
banks are involved. While two bank short sales can be completed, the
chances of them being completed, compared to a one bank short sale is low.

About The Author: Kathy is from the website How Much Do
Things Cost? Be sure to check out her website if you ever want to
find out what things such as home goods, surgeries and home appraisals cost. You
can also reach out to her on Twitter @howmuchforit.