Buyer Tips - Making a Home Dream Into a Reality

Buying a home can be one of the biggest decisions you make in your life.  We at Queens Realty understand how stressful a time this can be.  Here are a few buyer tips to make your homeowner dreams into a reality:

1. Upfront Costs - Most buyers know about saving up for their down payment, but there are other upfront costs that buyers need to have in addition to their down payment.  These include closing costs and inspection fees (where applicable).
2. Options for Down Payment - Most financial experts recommend that buyers come up with at least 20% of the cost of the home for a down payment.  That can be alot of money.  So, you  may want to explore your options.  If you can qualify for an FHA loan, you only need 3.5% down.  There are government programs that offer down payment assistance as well.  Another option is if you have a relative who would be willing to "gift" you all or part of your down payment.  Make sure to discuss these options with your Real Estate Professional.
3. Run a Credit Check First - Lenders use your credit score to determine whether you are a good risk to lend money to and your likelihood of paying back the loan.  If you credit score is high, you will get a lower interest rate, thus paying less to borrow money to purchase your home and saving you thousands of dollars over the life of the loan.  Everyone is entitled to one free credit report per year from each of the three credit reporting agencies: Experian, Equifax and TransUnion.  Check your credit report for accuracy and make sure to report any errors you find to the appropriate credit reporting agency.  It is important to do this for all three because there may be differing information on each one.  This should be done well in advance of applying for a loan.
4. Get Prequalified - Prequalifying for a loan takes only minutes.  The lender will go over what you make, what your monthly expenses are and determine how much money they would be willing to lend you.  This gives you a general idea of the price range you could afford based on these limited criteria.
5. Get Preapproved - Unlike prequalification, the process to get preapproved can take longer.  The lender will give you a letter of credit stating the maximum they have approved you for on a loan.  Sellers are more apt to work with someone who already has a loan in place.  It also helps make the home buying process proceed quicker.
6. Determine Wants - Decide exactly what you want and must have in a home before you go searching for one to help narrow your focus.  For example, you absolutely must have at least 3 bedrooms but can forgo the 3 car garage if the house fits the rest of your criteria.
7. Determine the Neighborhood You Want to Live In - Where you decide to live can have a big affect on your wallet.  Even different neighborhoods within the same city can cost or save you thousands of dollars on the asking price of a home.  Decide which areas will fit you and your family's needs before you do your home search.  Again, this will help you narrow your focus while searching for that perfect home.
8. Hire a Professional - An experienced Real Estate Professional can help you through the entire home buying experience, from searching for a home to putting your offer in to even helping you hire general contractors or inspectors you may need, making the home buying process easier.
9. Begin Your Home Search - Since approximately 84% of buyers start their home search online, the local MLS is a good place to start.

By following these buyer tips, you can make your home dream into a reality.  Contact Queens Realty to help you with any of your Queens real estate needs.

Purchasing a Home is a Good Financial Decision

A recent survey done by the 2010 National Housing Pulse Survey shows that eight out of ten people believe purchasing a home is a good financial decision. This is surprising news because of the ongoing challenges of the housing market, but very good news none-the-less.

The National Association of Realtors® released this annual report that helps measure how affordable housing issues affect consumers. The survey also found job security concerns to be the highest for the first time in eight years. Almost 70% of Americans say that job layoffs and unemployment are a big problem in their area and eight in ten say these issues are a big barrier to homeownership.

Although job recovery is what is needed right now to help get the economy and housing market back on track, many people still say owning a home is a big part of the American dream and a great long-term investment in their future.

More of the survey shows that, despite the economic uncertainty, 68% say it’s a good time to purchase a home. 63% of respondents who rent say that owning a home is a future priority and close to 40% say it’s their highest priority.

Even with improved affordability, nearly 80% of surveyors say having enough money for a down payment and closing is a big obstacle to their buying a home. And 73% say they lack the confidence to be approved for a loan.

Myers Research & Strategic Services for NAR’s Housing Opportunity Program and American Strategies are responsible for conducting the 2010 National Housing Pulse Survey. There were 1,209 adults surveyed who live in the 25 most populous metropolitan statistical areas.

 

A Queen’s November to Remember

It will be a November to remember in Queens, NY this month with several holiday related activities all month long. When visiting Queens this month, whether you’re visiting family, friends, or looking for Queens real estate, be sure to check out some of the local events going on in the Queens Borough.

Renaissance in Newton Creek – Join Queens historian and urban geographer Jack Eichenbaum on November 13th at 11:00am for a walking tour along Newton Creek. This event is sponsored by the Municipal Art Society and is $15 to enjoy.

LICBDC Annual Luncheon and Trade Show – The biggest business networking event in Queens will be held on November 17th. This annual affair is run by the Long Island City Business Development Corporation. It’s a great opportunity to connect with other entrepreneurs at the free trade showe.

Thanksgiving Dinner in Queens – Restaurants all throughout the Queens Borough will be serving turkey dinner complete with all the trimmings on Thanksgiving Day.

Macy’s Thanksgiving Day Parade – In just a short drive to New York City you can join people from around the world at the 84th Annual Macy’s Thanksgiving Day Parade on November 25th at 9:00am. The parade route will begin at 77th Street & Central Park West and end at 7th Avenue & 34th Street.

Public viewing areas for the parade include:

Central Park West – West side of the street from 70th Street to Columbus Circle and the east side of the street from 70th to 65th.

6th Avenue – Between 42nd and 34th Street

7th Avenue – Between 58th and 42nd Streets

34th Street – The South side of the street between Broadway and 7th Avenue

42nd Street – From 7th Avenue to 6th Avenue

Columbus Circle – The West side of the street

For more information about the 84th Annual Macy’s Thanksgiving Day Parade, visit their website at www.MacysParade.com.

A Gap in Mortgage Availability

Close to one-third of Americans are unlikely to qualify for a mortgage, which leaves a gap in mortgage availability. Many Americans no longer have the credit score required for homeownership. According to Zillow Mortgage Marketplace, borrowers with a credit score under 620 who asked for purchase loan quotes for 30-year fixed, conventional loans were highly unlikely to get even one loan quote even when offering a down payment of 15-25%. According to data provided by myFico.com, 29.3% of American’s have a credit score below 620.

At the same time, there are 47% of Americans who have an excellent credit score of 720 or above who were able to claim low interest rates on their mortgages. These borrowers were able to receive an APR of 4.3% for a conventional 30-year fixed mortgage because of their excellent credit score.

Borrowers with mid-range credit scores between 620 and 719 were given APRs between 4.73% and 4.44%. Credit scores blow 620 were too few to calculate an average low APR.

If you are looking to purchase a new home and your credit score is within the mid-range of 620-719, improving your credit score will help ensure a significant savings in interest over time. The average low APR declines 0.12% for each 20-point credit score increase. For a $300,000 home, with at least 20% down, you can save $6,400 over the life of a 30-year conventional loan.

Now that we are in an era of historically low mortgage rates and home value declines, homes are more affordable than ever. So, if you are having trouble getting a home loan because of your low credit score, work on paying off your debts and erasing them from your credit file. You, too, can have the home you’ve always dreamed of for prices you won’t see again for a very long time.