Cincinnati homeowners and homeowners around the U.S. need to be aware of the following information if they are looking to refinance and are having difficulty getting approved. There are options for refinance and loan modifications mandated by the federal government.
The Making Home Affordable Program was created to assist homeowners whose home values have declined to the point where they may no longer have equity in their homes. So the homeowners have not be able to refinance their homes and take advantage of lower interest rates. In addition, many of these homeowners are also locked in to 3,5 or 7 year adjustable mortgage rates which will soon reset at higher rates. To try to assist these homeowners the federal government started the Making Home Affordable Program. The purpose of the program is to stop the cycle of foreclosures and short sales and to provide homeowners who are in this position to have options to save their home and financial stability. This program has eligibility requirements that must be met. For more information please visit the Making Home Affordable Website. This site helps borrowers learn basic facts about mortgages, homeownership, and resources available, with more than 17.7 million page views in less than two months.
Fourteen servicers, including the five largest, have now signed contracts and begun modifications under MHA. Between loans covered by these servicers and loans owned or securitized by Fannie Mae or Freddie Mac, more than 75 percent of all loans in the country are now covered by the program. The 14 participating servicers have extended offers on over 55,000 trial modifications and mailed out over 300,000 letters with information about trial modifications to borrowers.
Urban Cincy reported this morning that Mayor Mallory has selected the development company that will finance, plan, design,construct, operate and maintain Cincinnati’s Modern Streetcar System. The location of the streetcar would be on the northern end of the Downtown/Over the Rhine circulator which would head uptown from there. This is great news for Cincinnati Real Estate. The addition of a streetcar in Downtown Cincinnati is great news for Cincinnati Real Estate. The continual development and success of downtown will continue to attract the creative class, which could eventually lead to new businesses moving their headquarters to Cincinnati.
If you are a first time homebuyer, here are a few guidelines for you to start to consider if you are thinking of buying a home in the next 6 months to a year. There are several steps to the home buying process that many people aren’t aware of.
1. Tips for Obtaining Financing
Be sure you are paying all of your bills on time and if you have outstanding debts try to make a payment plan with your credit card company. Do not make any large purchases or open multiple credit cards prior to trying to qualify or while you in the approval process. Do not join clubs or test drive cars or do anything where they will need to pull your credit because too many inquiries can cause your credit score to drop.
The brokers and bankers that I have been working with have said that in order to obtain a competitive interest rate it is important to have a minimum 580-620 credit score. You will need to get pre-qualified by a loan officer so that you know what price range you can comfortably afford.
2. What should I look for in a neighborhood
This is an individual decision. Everyone has different criteria that they search for. Please remember is that you don’t want to be the most expensive house on the block. The other important principle that many first time home buyers need to know is that you never want to over improve your home. When you are house hunting, pay attention to the types of finishes that homes in your price range tend to have and be sure not to spend too much money on improvements unless you are making them for your own enjoyment.
3. Do I need a Realtor?
Property is the single largest investment most people will make in their life. I recommend that buyers especially first time home buyers always have Realtor representation. In Cincinnati real estate, when properties are listed with a real estate company the commission is already figured into the list price and the % commission does not change whether you have representation or not.
4. How long does the First Time Home buyer Tax Credit last?
Closing must be on or before November 30, 2009.
Despite what the media is reporting I am out in the marketplace every day and want to report about the activity I have witnessed in the past two weeks. I have seen house after house that my buyers were interested in go under contract from Mt. Lookout, Indian Hill, Hyde Park, Montgomery, and Columbia Tusculum. Although the state of the economy is uncertain, saavy buyers are in the market and are looking to buy while rates are low.
On the selling side, it is crucial to have your house show well to attract the highest initial offer. If your house does not show well and you are not looking to make an improvements to it, then price it according to its decor and condition. It may take longer to sell than if it showed move in ready, but some buyers want a good deal and would rather do the work themselves. Another tip is to bring contractors to your home prior to listing your home for sale to provide incoming buyers estimates of how much it would cost to refinish the floors or update the kitchen.
On the buying side, while there are short sales and foreclosures out there and good deals to be had, the process is long and is not for everyone. Buyers should beware that the conditions of homes in short sale or foreclosure is usually unknown and remember that if the person can’t pay their mortgage, then they have probably neglected the maintenance of the home.
Consumer owned homes are in a different category. While some neighborhoods have had a lot of foreclosed and short sales others have maintained their value, so despite a down market you may or may not be able to get the house for below market value depending on the seller’s level of motivation and the other terms involved. Buyers be sure to get pre-approved for financing prior to determining the price range of homes you will seek to buy. Banks have become much more stringent on their lending requirements, credit scores, and debt to income ratios.
If you are looking to buy a home and aren’t sure what to offer, ask your realtor or in the Cincinnati market I can assist you with the comparable sales information in order to be sure you are educated on pricing in the neighborhood. Your offer is more likely to be accepted if you have evidence supporting that your offer is fair market value.
