Despite all the stories you hear on the news, buying Brooklyn home foreclosures doesn’t have to be a negative experience. Here are 3 tips to make the process smoother and more profitable for you:
Tip #1: Allow plenty of time for the whole process.
Brooklyn foreclosures take longer to get to closing than traditional homes. What takes so long? As you probably know, there are a lot of foreclosures happening now. That means there is a large backlog of foreclosures lenders have to process before they get to yours.
Another common problem that extends the buying time for foreclosures is title issues. Before closing, the new mortgage lender needs to prove that you have a clean title so they feel safe lending the money. Each step of a foreclosure increases the amount of time before you can close.
If you can’t be patient, don’t drive yourself crazy by purchasing a foreclosure. But if you can be patient, the wait can be well worth the savings.
Tip #2: Flash your cash.
Because bad loans weaken the banks’ bottom line, they will usually accept a lower sales price with a cash offer over a higher sales price that requires financing. So, the more cash you can flash, the better your chance of getting a great deal.
Pay close attention to the condition of Brooklyn New York foreclosures.
Foreclosures are offered “as-is.” Do a walk-through of the property before making an offer to ensure it’s worth the price. Include a final walk-through in thereal estate contract to assure the home is in the same condition as it was when the offer was made. By including an escape clause, if the current residents trash the place, you have the option to walk away.
Do you know how closing costs actually work? Or, how you’d use CMAs (comparative market analysis) to evaluate Brooklyn New York real estate? And, can you decipher all of the abbreviations and acronyms, such as FDR, lo dues and MLS.
Purchasing a home is frustrating enough without having to go through the frustration of decoding all the complicated speak and legalese. If you brush up with a real estate dictionarybefore your home-buying search, you’ll gain valuable knowledge and save yourself a lot of time and headaches in the long run.
Basic lingo every Brooklyn New York real estate buyer or seller should know …
ARM – This stands for Adjustable-Rate Mortgage, which is a type of mortgage where the interest rate periodically adjusts.
Closing costs – These are miscellaneous expenses buyers and sellers pay upon closing; they usually include brokerage commission, escrow taxes, recording fees, etc.
CMA – This stands for Comparable Market Analysis, which is a report of recently sold, comparable homes in the same market as the home you’re selling.
Fixture – Anything that is permanently attached to the home, such as door knobs, carpeting, light fixtures and landscaping
FP – Fireplace
HDW – Hard Wood Floors
Lo dues – Dues paid to the homeowners association
MLS – Multiple Listing Service, which is an organization that compiles multiple listings into one report and distributes it to all of their realty members.
PSF – Per Square Foot
Sale price – The actual price at which the property sells.
Don’t let the hectic housing market overwhelm you. If you understand Brooklyn New York real estate lingo, you’ll be more knowledgeable and able to easily achieve your real estate goals.
If you have questions about any of these terms or want help achieving your real estate goals, call me Charles D’Alessandro of Fillmore Real Estate, your Brooklyn New York Realtor® at (718) 253-9600 ext 206 or email me at [email protected] for more information.
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Searching for the perfect Brooklyn Home or a Realtor® who gets homes sold? Congratulations, you’ve just found one ! Charles D’Alessandro Your Brooklyn Realtor®. I’d be honored if you’d give me a chance to interview for the job of selling your Brooklyn New York home. Please call me at (718)253-9600 ext.206 or email me at [email protected] to
Reverse mortgages are a popular option for homeowners who are 62 years of age and older and need additional income. Credit scores and income are not part of the qualification process for a reverse mortgage, so they’re fairly easy to get.
But is a reverse mortgage right for you, your parents or grandparents? Here are some pros and cons to consider before making your decision:
Pros of getting a reverse mortgage on your Brooklyn New York real estate
When you get a reverse mortgage, you can:
Use the money to supplement social security, pay for home improvements or meet unexpected medical bills.
Choose the payment method you prefer: monthly payment, line of credit or lump sum.
Make no payments on the loan (monthly or otherwise) unless you die, move or sell the home. If any of those events occur, the loan is due in full, plus interest and fees.
Cons of getting a reverse mortgage on your Brooklyn New York real estate
Unfortunately, there are several disadvantages to taking out a reverse mortgage:
You pay origination fees that are almost twice as much as origination fees on conventional mortgages.
There are a wide variety of reverse mortgages available from a lot of different sources. This makes an already complex loan even more confusing. Shop around, compare and attend an information session with an approved HUD counselor before deciding on a reverse mortgage.
It may impact your eligibility for Medicaid and other state or federal programs. For example, if you currently receive any “need based” benefits such as Medicaid or Supplemental Social Security Income (SSI), reverse mortgage payments will have to be structured so that monthly payments will be spent within the month they are received. If not, such payments will be considered income, and may make you ineligible for public benefits. Contact your benefits provider to ask about how a reverse mortgage may affect your eligibility.
If getting a reverse mortgage on your Brooklyn New York real estate, or the home of your parents or grandparents, is the right thing to do, you might want to consider FHA’s reverse mortgage program called The Home Equity Conversion Mortgage (HECM). According to HUD, the HECM is a safe plan that can give older Americans greater financial security.
You can receive additional free information about reverse mortgages by contacting the National Council on Aging at (800) 510-0301. I’m also available to help you with this difficult decision. Give me a call today Charles D’Alessandro your Brooklyn Realtor with Fillmore Real Estate at (718) 253-9600 ext.206 or email [email protected].
If you watch television, read magazines or surf the net, you’ve probably seen ads for reverse mortgages. Those ads don’t provide many details, so here are the basics you need to know about reverse mortgages.
Are you eligible for a reverse mortgage on your Brooklyn NY real estate?
To be eligible for a reverse mortgage, you must:
Be at least 62 years old
Own your home
Live in the home and claim it as your primary residence
When does the reverse mortgage loan become due?
As the homeowner, you do not have to make any monthly payments on your reverse mortgage. The loan becomes due when you:
Permanently move out of your home
Sell the home or fail to fulfill other conditions like the continued payment of property taxes, homeowner’s insurance and repair and maintenance.
Pass away
Should you get a reverse mortgage on your Brooklyn NY real estate?
TheConsumers Union, the nonprofit publisher of Consumer Reports, suggests you consider all alternatives to a reverse mortgage before taking the plunge. Alternatives you may want to consider include less expensive programs offering financial assistance, other lower-cost loans or selling your home.
You may want to get a reverse mortgage if you:
Need additional income and there is no less expensive way to get it. Use an onlinereverse mortgage calculator to estimate the amount of money you could get from a reverse mortgage.
Want to stay in your home and retain ownership
Do not plan to leave your home to your children or others who will inherit from you.
You may NOT want to get a reverse mortgage if you:
Want to leave your home, free and clear, to your children or heirs
Have a less costly means to reach your financial goal
Become ineligible to receive public benefits such as Medicaid or SSI (Social Security Income) by taking out a reverse mortgage.
Will have trouble paying your property taxes and homeowner’s insurance. A 2010 report from the Department of Housing and Urban Development (HUD) estimated that more than 20,000 reverse mortgages were in default for nonpayment of taxes and insurance. You do not want to get a reverse mortgage only to lose your home to foreclosure and eviction because you’re unable to pay your taxes and insurance.
As always, when you consider taking out a loan of any type, do your homework to make sure this is the right move for you, be sure to read all of the fine print and understand exactly what it is you’re signing.
If you’d like some help determining if selling your home, getting a reverse mortgage or some other lower-cost loan is best for you, give me a call Charles D’Alessandro of Fillmore Real Estate call today at 9718) 253-9600 ext 206 or email me at [email protected].
Are you a first-time home buyer? There are a lot of things you’ll want to learn before making that first purchase. Here are 9 tips to help you get a Brooklyn New York home you’ll love and be prepared for additional costs you may not have considered:
1. Ask yourself if you’re ready. Are you financially ready to buy a Brooklyn New York home? Do you have a steady job and income? Do you have money for the down payment?
2. Get pre-approved. When you get pre-approved for a mortgage loan, your lender checks your credit and lets you know the amount of mortgage for which you qualify. Having a pre-approved loan will put you at the top of the list when presenting an offer.
3. Identify closing costs. The cost of closing on the sale of your Brooklyn New York home shouldn’t be overlooked. Closing costs include origination fees, title and settlement fees, taxes and prepaid items such as homeowner’s insurance or homeowner’s association fees.
4. Calculate your total monthly housing cost. Include taxes and homeowners insurance. In some areas, what you’ll pay for your taxes and insurance escrow almost doubles your mortgage payment.
5. Include home maintenance expenses in your budget. Maintaining your investment can be labor-intensive and expensive. Unexpected costs for new appliances, roof repairs and plumbing problems can drain your bank account.
6. Find a Brooklyn home. Identify the neighborhood, you want to live in. Hire a full-time REALTOR® who specializes in that neighborhood to help you find and negotiate the purchase of the home.
7. Get a home inspection. Make sure your agent includes a home inspection contingency in your offer to buy a home. If you’re unsatisfied with anything found in the home inspection, have your agent negotiate with the seller to make repairs, pay for repairs or lower the price.
8. Make it to closing. You have your financing, your offer has been accepted, and you’re anxiously awaiting the day you close on your home. Now, you just have to make sure you don’t do anything to jeopardize your credit. Do not change jobs, buy a new car or apply for credit cards.
9. Celebrate. Congratulations! You’re now the proud owner of your first home.
One of the biggest challenges for Brooklyn’s first time home buyer is the financing . Here in this video is Charles D’Alessandro of Fillmore Real Estate a Brooklyn New York real estate agent and Tony Cetta a mortgage professional with Continental Home Loans discussing the challenges for first time home buyers in today’s market.
Thinking of buying a home? I can help you ,if you are a first time Brooklyn Home buyer or looking to relocate. I will help you and find a home that fits your values and lifestyle. Give me a call todayCharles D’Alessandro of Fillmore Real Estate at (718) 253-9600 ext 206 or email me at [email protected]
Some Brooklyn home buyers have an advantage that others don’t in today’s housing market. They can qualify for an FHA loan.
Federal Housing Administration (FHA) loans help Brooklyn home buyers who would otherwise have trouble being approved for a mortgage. You can qualify for a loan if you have less than perfect credit. FHA loans are available even after bankruptcy and foreclosure, if you have maintained good credit for the following two to three years.
What are the requirements for FHA loans?
FHA loans have strict home appraisal guidelines. The appraisal value helps determine the FHA mortgage limit. Each state has its own rules regarding maximum loan limits.
What are the advantages to FHA loans?
One advantage of an FHA loan is lower down payment requirements. You may qualify for a down payment as low as 3.5 percent of the purchase price of the property. Additionally, most of your closing costs can be included in the loan, so you’ll have less out of pocket expenses.
An FHA loan can also be used to buy a house that needs improvements. If you need cash to make the repairs, you can apply for a loan to cover the cost of the expected repairs. The FHA also has energy efficient mortgages which include the costs of energy improvements.
What are the terms of FHA loans?
An FHA loan can take many forms: it may be a fixed-rate loan, an adjustable rate mortgage (ARM) or a reverse mortgage.
A fixed-rate mortgage has a set interest rate for a set amount of time. Typically, it will be a 15 or 30-year loan.
An ARM has a variable interest rate for 15 to 30 years.
Thereverse mortgagepays a set amount of money to the homeowner for the entire time they live in the home.
The FHA, or Federal Housing Administration, has helped many a homeowner buy a Brooklyn home for sale by providing mortgage insurance through FHA-approved lenders. However, a change in policy, announced in January, may make it harder for those with poor credit.
Before we talk about FHA’s change in policy, let’s cover a few of the basics about the FHA and how it might help you buy a Brooklyn home for sale.
What is the FHA?
The FHA is a government agency that provides mortgage insurance to approved lending institutions. It assists home buyers by providing mortgage insurance to lenders to cover most losses that may occur when a borrower defaults. This encourages lenders to make loans to borrowers who might otherwise not be able to get a loan.
What is an FHA Loan?
An FHA loan is a loan provided by anFHA-approved lender and insured by the FHA. In other words, the FHA guarantees that a lender won’t have to write off a loan if the borrower defaults – the FHA will pay. Because of this guarantee, lenders are willing to make mortgage loans.
An FHA loan might help you get a mortgage by providing:
Lower down payments
Lower closing costs
Easier credit qualifications
Now let’s talk about the changes FHA is making…
The Future of FHA Loans
Until recently, the FHA has managed to weather the real estate turmoil rather well. In fact, the turbulence surrounding other lenders had potential homebuyers flocking to take advantage of FHA loans. However, even FHA’s bank account is starting to suffer. In order to shore up capital reserves and keep 34 million families in their homes, the FHA is changing the rules.
Before the changes, borrowers were required to pay a down payment of 3.5% of the cost of the home. Now, borrowers with a credit rating below 580 will be required to pay at least a 10% down payment. As well, the good upfront mortgage insurance premiums of 1.75% are increasing to 2.25%. The FHA is now trying to get Congress’ approval to raise the annual premiums from 0.55%, although the amount it will seek is still unknown.
What This Means for You
If you’re interested in buying a Brooklyn home for sale, but haven’t because you’re waiting for the market to bottom out, you may end up losing out on a great deal. With almost record low mortgage rates, home values lower than they’ve been for eight years, the first-time and upgrade homebuyer tax credits and a wide selection of homes, there may never be a better time to buy.
