1. HOW DO I KNOW IF I’M READY TO BUY A HOME?

You can find out by asking yourself some questions:

	Do I have a steady source of income (usually a job)? Have I been employed on a regular basis for the last 2-3 years? Is my current income reliable?
	Do I have a good record of paying my bills?
	Do I have few outstanding long-term debts, like car payments?
	Do I have money saved for a down payment?
	Do I have the ability to pay a mortgage every month, plus additional costs?

If you can answer “yes” to these questions, you are probably ready to buy your own home.

2. HOW DO I BEGIN THE PROCESS OF BUYING A HOME?

Start by thinking about your situation. Are you ready to buy a home? How much can you afford in a monthly mortgage payment (see Question 4 for help)? How much space do you need? What areas of town do you like? After you answer these questions, make a “To Do” list and start doing casual research. Talk to friends and family, drive through neighborhoods, and look in the “Homes” section of the newspaper.

3. HOW DOES PURCHASING A HOME COMPARE WITH RENTING?

The two don’t really compare at all. The one advantage of renting is being generally free of most maintenance responsibilities. But by renting, you lose the chance to build equity, take advantage of tax benefits, and protect yourself against rent increases. Also, you may not be free to decorate without permission and may be at the mercy of the landlord for housing.

Owning a home has many benefits. When you make a mortgage payment, you are building equity. And that’s an investment. Owning a home also qualifies you for tax breaks that assist you in dealing with your new financial responsibilities- like insurance, real estate taxes, and upkeep- which can be substantial. But given the freedom, stability, and security of owning your own home, they are worth it.

4. HOW DOES THE LENDER DECIDE THE MAXIMUM LOAN AMOUNT THAT CAN AFFORD?

The lender considers your debt-to-income ratio, which is a comparison of your gross (pre-tax) income to housing and non-housing expenses. Non-housing expenses include such long-term debts as car or student loan payments, alimony, or child support. According to the FHA,monthly mortgage payments should be no more than 29% of gross income, while the mortgage payment, combined with non-housing expenses, 4 should total no more than 41% of income. The lender also considers cash available for down payment and closing costs, credit history, etc. when determining your maximum loan amount.

5. HOW DO I SELECT THE RIGHT REAL ESTATE AGENT?

Start by asking family and friends if they can recommend an agent. Compile a list of several agents and talk to each before choosing one. Look for an agent who listens well and understands your needs, and whose judgment you trust. The ideal agent knows the local area well and has resources and contacts to help you in your search. Overall, you want to choose an agent that makes you feel comfortable and can provide all the knowledge and services you need.

6. HOW CAN I DETERMINE MY HOUSING NEEDS BEFORE I BEGIN THE SEARCH?

Your home should fit way you live, with spaces and features that appeal to the whole family. Before you begin looking at homes, make a list of your priorities – things like location and size. Should the house be close to certain schools? your job? to public transportation? How large should the house be? What type of lot do you prefer? What kinds of amenities are you looking for? Establish a set of minimum requirements and a ‘wish list.” Minimum requirements are things that a house must have for you to consider it, while a “wish list” covers things that you’d like to have but aren’t essential.

FINDING YOUR HOME

7. WHAT SHOULD I LOOK FOR WHEN DECIDING ON A BROOKLYN COMMUNITY?

Select a community that will allow you to best live your daily life. Many people choose communities based on schools. Do you want access to shopping and public transportation? Is access to local facilities like libraries and museums important to you? Or do you prefer the peace and quiet of a rural community? When you find places that you like, talk to people that live there. They know the most about the area and will be your future neighbors. More than anything, you want a neighborhood where you feel comfortable in.

8. WHAT SHOULD I DO IF I’M FEELING EXCLUDED FROM CERTAIN NEIGHBORHOODS?

Immediately contact the U.S. Department of Housing and Urban Development (HUD) if you ever feel excluded from a neighborhood or particular house. Also, contact HUD if you believe you are being discriminated against on the basis of race, color, religion, sex, nationality, familial status, or disability. HUD’s Office of Fair Housing has a hotline for reporting incidents of discrimination: 1-800-669-9777 (and 1-800-927-9275 for the hearing impaired).

9. HOW CAN I FIND OUT ABOUT LOCAL SCHOOLS?

You can get information about school systems by contacting the city or county school board or the local schools. Your real estate agent may also be knowledgeable about schools in the area.

10. HOW CAN I FIND OUT ABOUT COMMUNITY RESOURCES?

Contact the local chamber of commerce for promotional literature or talk to your real estate agent about welcome kits, maps, and other information. You may also want to visit the local library. It can be an excellent source for information on local events and resources, and the librarians will probably be able to answer many of the questions you have.

11. HOW CAN I FIND OUT HOW MUCH BROOKLYN HOMES ARE SELLING FOR IN CERTAIN COMMUNITIES AND NEIGHBORHOODS?

Your real estate agent can give you a ballpark figure by showing you comparable listings. If you are working with a real estate professional, they may have access to comparable sales maintained on a database.

If you would like to follow this series of questions and answers about buying your New Brooklyn Home Check it out here

If you’re looking for an experienced, energetic, resourceful  Brooklyn real estate agent or just have a few questions, give me Charles D’Alessandro your Brooklyn Realtor® with Fillmore Real Estate a call at (718) 253-9600 ext.206 or email me at [email protected]

As we approach the 2011 Income Tax filing deadline of April 15th , as homeowners we turn our attention to a different tax, real estate tax.

The cost of home ownership is not simply your monthly mortgage payment.  In order to calculate the true cost of Brooklyn home ownership, you need to consider a variety of other expenses.

One of the additional expenses you need to consider is real estate taxes.  Most state and local governments charge an annual tax on the value of real property. This is called a real estate tax.  Not everyone is subject to real estate taxes but for those who are it can make a big difference in how much home you can afford.

Real estate taxes are not the same for every property.

Real estate taxes vary from a couple of hundred dollars a year to thousands of dollars a year.  This should be looked at seriously, because it could mean the difference between being able to afford your home and not being able to make your payments.

No one wants to be house poor or lose their home because they can’t afford the real estate tax, but countless numbers of people have lost their homes for this very reason.  If you don’t pay your real estate taxes, not only will your home be sold for back taxes, but the mortgage company will still expect full payment on your loan.

Higher taxes don’t necessarily mean better services.

Although neighborhoods with higher taxes can offer better schools, roads and hospitals, this is not always the case.  Don’t judge the neighborhood by the real estate tax, but do look at the services you’re getting for the taxes being charged.

Real estate taxes must be paid to transfer ownership.

If you are selling your Brooklyn home, you must have your real estate taxes current.  If you’re buying a Brooklyn home, know that the real estate taxes are part of the closing costs you have to pay.  The yearly real estate taxes and the status of those taxes are part of every real estate listing and should be taken into consideration just as you would consider the price of the home.

Knowing the costs associated with homeownership allows you to purchase your new Brooklyn home with peace of mind.

If you’re thinking of buying a Brooklyn home, let me help make the process a pleasant and profitable experience.  Call me Charles D’Alessandro your Brooklyn Realtor® with Fillmore Real Estate today at (718) 253-9600 ext 206 or email me at [email protected]

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 the real 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.

If you’re in the market to buy a foreclosure, I can help.  Give me Charles The Realtor® of Fillmore Real Estate a call today at (718) 253-9600 ext.206 or email me at [email protected]

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 dictionary before 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.
• ERV – Estimated Rental Value
• FDR – Formal Dining Room
• 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.

Reverse Mortgage ! Is it Right for you?

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?

The Consumers 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 online reverse 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.

Buying your first home can be exciting, especially if you’re knowledgeable about the process and prepared. Follow me for more Questions &  Answers About Buying a New Brooklyn Home .

If your goal for this year is to be a first-time homeowner, let me guide you through the process of finding and buying a home. For a FREE copy if Michael Reinhardts book “Buying Real Estate does Not Have To Be Stressful, call Charles D’alessandro your Brooklyn Realtor® of Fillmore Real Estate today at (718) 253-9600 ext 206 or email me at [email protected] for more information.

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 today Charles D’Alessandro of Fillmore Real Estate at (718) 253-9600 ext 206 or email me at [email protected]

House flipping is still a profitable way to invest in Brooklyn Real Estate , if you know what you’re doing. I’m going to share one of the biggest mistakes prospective home flippers make and how to avoid it.

Choosing the Wrong Brooklyn Real Estate to Flip

Nothing will make your venture into the world of house flipping a bigger nightmare than a finished product that will not sell. To avoid this, learn all you can about what’s currently selling the fastest and for the most money in your Brooklyn real estate market.

It doesn’t mean you have to pick expensive homes in up-scale neighborhoods.  In fact, those may be the worst Brooklyn properties to try to flip, depending on your market.  Typically, there are houses you can flip for profit in every price range.

Choosing the Right Brooklyn Property to Flip

The things you need to avoid when buying a Brooklyn home you’re planning to flip are basically the same things you would avoid if you were purchasing that same home as your primary residence.  Here are three things to avoid when choosing a home to flip:

1)      Distractions that would make living in the home undesirable such as busey avenues, comercial streets or manufactuing plants.

2)      Crazy floor plans that cannot be easily fixed in a quick and inexpensive remodel.

3)      Homes with major structural damage. Getting a home inspection is the best way to avoid this.  However, if for some reason you cannot get a home inspection, always make provisions in your operating expenses for unexpected major repairs.

If you would like more information on how to turn a profit by flipping Brooklyn real estate, give me Charles D’Alessandro of Fillmore Real Estate a call today at (718) 253-9600 ext 206 or email me at [email protected]