The 30-year, fixed-rate mortgage has been the popular choice for homebuyers; however, today, lenders are offering a variety of loan types including 15, 20 and 40 year mortgages. Here is some basic information for new home buyers to make a wise choice in financing.
The Shorter Loan Term
Some home owners choose a shorter loan term to save on the amount of interest paid over the life of the loan. Of course a shorter loan term means a higher mortgage payment.
The Longer Loan Term
A longer term means a lower monthly payment; however, you will pay more interest over the life of the loan. This might be your choice if the larger payment on a shorter term prevents you from qualifying for the mortgage. Maybe you can better afford the smaller payment at first. You can always refinance at a later date.
Most mortgages do not have a pre-payment penalty, so you can make additional principal payments whenever you want to. This will also reduce the amount of interest you pay on the mortgage. The longer term has the smaller payment obligation for times when things are tight; yet the option of making larger payments as well.
Biweekly Mortgage Payments
Many lenders are offering the bi-weekly mortgage payment plan where they automatically withdraw the funds from your bank account in the amount of ½ a payment every two weeks. This means you will pay a total of one extra payment per year (26 half pmts = 13 payments); in addition, switching to biweekly reduces the interest and shortens the term dramatically.
The Sooner the Better
Making extra principal payments early in the life of the loan is most beneficial; this is when the most of your payment is applied to interest. The sooner you reduce the principal balance, the less you will pay for interest.
The type of financing you choose depends on many factors including how long you intend to stay in your home and how much you think your income will be in the future.
Mark Goedert of Goedert Real Estate provides information to home buyers and investors as well as affordable home listings and search tools to help with the process. Use the mortgage calculator to determine your monthly payment.
Mark Goedert of Goedert Real Estate has been in business for over 50 years, working with real estate professionals, agents, developers, investors, REO brokers and first-time home buyers in Battle Creek, Hillsdale, Lansing, Jackson, Grand Rapids, Adrian, Howell, Sterling Heights, Monroe, Farmington Hills, Ann Arbor, Detroit and neighboring cities and communities.
Tuesday, August 11, 2009
Home Buyer Programs in Jackson County: Break-down of a Mortgage Payment
A mortgage payment typically consists of principal and interest; some people also pay escrow for property taxes and insurance. There may also be an additional charge for PMI or private mortgage insurance.
Most people are surprised at how much of their payment is applied to interest and how little is applied to principal. In fact, the largest part of your mortgage payment is likely to be interest early in the loan.
How it Works
Your mortgage payment break-down is always based on your principal balance; if you purchase a home and your beginning mortgage balance is $100,000, the interest rate is 7.5% and your monthly payment is $700.00 then your first payment will be applied as follows:
$625 is interest
$ 75 is principal
Calculated as follows:
Mortgage balance ($100,000) multiplied by interest rate (0.75) = $7,500 to get annual interest. $7,500 divided by 12 = $625 to calculate interest for one month.
The new principal balance is reduced by the $75 applied to principal, leaving a balance of $99,925. Each month’s mortgage payment is calculated based on a lower principal balance; therefore, less interest is charged each month.
Equity
When you pay down the principal balance on your mortgage, you are building equity in your home. Some homeowners choose mortgages with shorter terms and larger payments to build equity faster.
Considering the amount that is applied to interest early in the game, many homeowners choose to make larger principal payments as soon as they can to reduce the loan balance. Shorter loan terms are not for everyone; be sure to talk to your real estate agent and loan officer about what options are available to you and which one would suit your individual needs.
Mark Goedert of Goedert Real Estate specializes in working with first-time homebuyers. He assists his clients in choosing the right home and the financing that works best for them. Home buyers who work with a Goedert agent are well prepared to make great decisions based on advice from an experienced real estate professional.
Mark Goedert of Goedert Real Estate has been in business for over 50 years, working with real estate professionals, agents, developers, investors, REO brokers and first-time home buyers in the Down River area, Calhoun, Hillsdale, Ingham, Jackson, Lenawee, Livingston, Macomb, Monroe, Oakland, Washtenaw, Wayne and South Eastern Michigan Cities and Counties.
Most people are surprised at how much of their payment is applied to interest and how little is applied to principal. In fact, the largest part of your mortgage payment is likely to be interest early in the loan.
How it Works
Your mortgage payment break-down is always based on your principal balance; if you purchase a home and your beginning mortgage balance is $100,000, the interest rate is 7.5% and your monthly payment is $700.00 then your first payment will be applied as follows:
$625 is interest
$ 75 is principal
Calculated as follows:
Mortgage balance ($100,000) multiplied by interest rate (0.75) = $7,500 to get annual interest. $7,500 divided by 12 = $625 to calculate interest for one month.
The new principal balance is reduced by the $75 applied to principal, leaving a balance of $99,925. Each month’s mortgage payment is calculated based on a lower principal balance; therefore, less interest is charged each month.
Equity
When you pay down the principal balance on your mortgage, you are building equity in your home. Some homeowners choose mortgages with shorter terms and larger payments to build equity faster.
Considering the amount that is applied to interest early in the game, many homeowners choose to make larger principal payments as soon as they can to reduce the loan balance. Shorter loan terms are not for everyone; be sure to talk to your real estate agent and loan officer about what options are available to you and which one would suit your individual needs.
Mark Goedert of Goedert Real Estate specializes in working with first-time homebuyers. He assists his clients in choosing the right home and the financing that works best for them. Home buyers who work with a Goedert agent are well prepared to make great decisions based on advice from an experienced real estate professional.
Mark Goedert of Goedert Real Estate has been in business for over 50 years, working with real estate professionals, agents, developers, investors, REO brokers and first-time home buyers in the Down River area, Calhoun, Hillsdale, Ingham, Jackson, Lenawee, Livingston, Macomb, Monroe, Oakland, Washtenaw, Wayne and South Eastern Michigan Cities and Counties.
Should you pay Mortgage Points? Homebuyer Tips from Washtenaw County Real Estate Agents
Homebuyers will often choose to pay points in exchange for a lower interest rate on their mortgage. A point is equal to 1 percent of the loan amount. For example, one point on a $100,000 loan would be $1,000. Points are typically paid out-of-pocket.
The decision to pay points is based on how long you intend to stay in the house and how much you save by reducing the interest rate. Consider the amount your monthly payment is reduced and how many months it will take for the savings to exceed the amount paid in points.
If you plan to sell and move in the near future, then it may not be in your best interest to pay points; you might be better off with the higher interest rate and no points.
Another thing to consider is that points on a mortgage loan are fully tax deductable during the year you closed on your new home. The rules are different if you are refinancing your home.
Mark Goedert of Goedert Real Estate works with first-time homebuyers to help them understand the process to make wise home buying and financing choices. Goedert Real Estate provides information and resources for new buyers and affordable listings.
Mark Goedert of Goedert Real Estate has been in business for over 50 years, working with real estate professionals, agents, developers, investors, REO brokers and first-time home buyers in Battle Creek, Hillsdale, Lansing, Jackson, Grand Rapids, Adrian, Howell, Sterling Heights, Monroe, Farmington Hills, Ann Arbor, Detroit and neighboring cities and communities.
The decision to pay points is based on how long you intend to stay in the house and how much you save by reducing the interest rate. Consider the amount your monthly payment is reduced and how many months it will take for the savings to exceed the amount paid in points.
If you plan to sell and move in the near future, then it may not be in your best interest to pay points; you might be better off with the higher interest rate and no points.
Another thing to consider is that points on a mortgage loan are fully tax deductable during the year you closed on your new home. The rules are different if you are refinancing your home.
Mark Goedert of Goedert Real Estate works with first-time homebuyers to help them understand the process to make wise home buying and financing choices. Goedert Real Estate provides information and resources for new buyers and affordable listings.
Mark Goedert of Goedert Real Estate has been in business for over 50 years, working with real estate professionals, agents, developers, investors, REO brokers and first-time home buyers in Battle Creek, Hillsdale, Lansing, Jackson, Grand Rapids, Adrian, Howell, Sterling Heights, Monroe, Farmington Hills, Ann Arbor, Detroit and neighboring cities and communities.
First-time Homebuyer Guide: Adjustable-Rate Mortgages (ARMs) Explained by Macomb County Realtors
Adjustable-rate mortgages, also called ARMs have a fluctuating interest rate based on several current market factors. The terms of the mortgage will spell out how often and how much the interest rate can change over the life of the loan.
ARMs typically have lower introductory interest rates than fixed-rate mortgages, making them appealing to one who doesn’t plan to own their home very long before selling.
Key factors to consider when deciding on an ARM include how long you plan to own the home and how frequently payments may change. If you plan to stay in the home for a long time then you might be better off with the stability of a fixed-rate mortgage.
Adjustable-rate mortgages consist of three primary components: an index, margin and calculated interest rate.
The index rate is based on an index that measures the lender’s ability to borrow money. The specific index used can vary; one example is US Treasury Bills. Indexes cannot be controlled by the lender.
The margin is also known as the spread. It is a percentage added to the index to cover the lender’s overhead and profit. Though the index can rise and fall over time, the margin usually remains constant over the life of the loan.
The calculated interest rate is figured by adding the index and the margin together. This is the new rate the homeowner will pay.
The interest rate for adjustable rate mortgages change with fluctuating market conditions; therefore, it is a good idea to understand your adjustment period. The introductory interest rate is often very low and the adjustment period may be shorter than future adjustment periods. Rates can change every 6 months or every year. Structure can vary from one lender to another with ARMs.
Rate caps protect homebuyers from dramatic increases in the interest rate. Most ARMs have caps that limit how much the rate may rise between adjustment periods as well as how much it can increase or fall over the life of the loan.
Payment caps are built into some ARMs to place a limit on how much your monthly payment can increase during an adjustment period. This can create a problem if the interest rate increases to the point that monthly interest exceeds the monthly payment. This creates negative amortization, which means your mortgage balance goes up each month that you make only the minimum required payment.
If you are considering an adjustable-rate mortgage, be sure to talk to your lender and get answers you need so you understand the financial impact of this choice.
Mark Goedert of Goedert Real Estate provides valuable information to first-time homebuyers so they can educate themselves to make wise financing decisions. The type of financing and terms of your mortgage will depend on your individual needs and circumstances.
Mark Goedert of Goedert Real Estate has been in business for over 50 years, working with real estate professionals, agents, developers, investors, REO brokers and first-time home buyers in Mason, Hudson, Pinckney, St. Clair Shores, Bedford, Southfield, Saline, Canton, Trenton and neighboring cities and communities in the Down River Area.
ARMs typically have lower introductory interest rates than fixed-rate mortgages, making them appealing to one who doesn’t plan to own their home very long before selling.
Key factors to consider when deciding on an ARM include how long you plan to own the home and how frequently payments may change. If you plan to stay in the home for a long time then you might be better off with the stability of a fixed-rate mortgage.
Adjustable-rate mortgages consist of three primary components: an index, margin and calculated interest rate.
The index rate is based on an index that measures the lender’s ability to borrow money. The specific index used can vary; one example is US Treasury Bills. Indexes cannot be controlled by the lender.
The margin is also known as the spread. It is a percentage added to the index to cover the lender’s overhead and profit. Though the index can rise and fall over time, the margin usually remains constant over the life of the loan.
The calculated interest rate is figured by adding the index and the margin together. This is the new rate the homeowner will pay.
The interest rate for adjustable rate mortgages change with fluctuating market conditions; therefore, it is a good idea to understand your adjustment period. The introductory interest rate is often very low and the adjustment period may be shorter than future adjustment periods. Rates can change every 6 months or every year. Structure can vary from one lender to another with ARMs.
Rate caps protect homebuyers from dramatic increases in the interest rate. Most ARMs have caps that limit how much the rate may rise between adjustment periods as well as how much it can increase or fall over the life of the loan.
Payment caps are built into some ARMs to place a limit on how much your monthly payment can increase during an adjustment period. This can create a problem if the interest rate increases to the point that monthly interest exceeds the monthly payment. This creates negative amortization, which means your mortgage balance goes up each month that you make only the minimum required payment.
If you are considering an adjustable-rate mortgage, be sure to talk to your lender and get answers you need so you understand the financial impact of this choice.
Mark Goedert of Goedert Real Estate provides valuable information to first-time homebuyers so they can educate themselves to make wise financing decisions. The type of financing and terms of your mortgage will depend on your individual needs and circumstances.
Mark Goedert of Goedert Real Estate has been in business for over 50 years, working with real estate professionals, agents, developers, investors, REO brokers and first-time home buyers in Mason, Hudson, Pinckney, St. Clair Shores, Bedford, Southfield, Saline, Canton, Trenton and neighboring cities and communities in the Down River Area.
New Home Buyer Information: Measuring your Home Buying Power in Oakland County
There are many factors you need to consider when shopping for a home; how much you can afford is likely at the top of the list. Your budget affects your choice of home, the neighborhood it is in, size and other features. Your financial situation is also a deciding factor on which type of financing will work for you.
Lenders will look at more than just income when considering you for a loan and determining the size of a loan you can qualify for. You may find some creative financing options that help boost your purchasing power.
Pre-Qualification or Pre-Approval
New homebuyers can have their real estate agent or lender pre-qualify them for a loan. This is a quick process that can give you an idea as to the amount of a mortgage you can afford. Pre-approval is a more formal process where a lender verifies all data and agrees in advance that you are qualified for a specific amount. A pre-approval document is much better than a pre-qualifying letter when demonstrating your strength as a homebuyer.
Important Factors to Lenders
Lenders will use several factors to determine how much money they will loan you, including:
• Gross monthly income
• Credit history
• Outstanding debt
• Savings
• Your choice of financing
• Current interest rates
Lenders will gather your financial data to calculate two important ratios; your debt-to-income ratio and your housing expense ratio, to determine how much they will loan you.
Debt-to-income ratio is your total monthly debt (car payment, student loans, credit cards, etc…) compared to your total gross income. Lenders like to see monthly debt at no more than 36 percent of gross monthly income.
Housing expense ratio is the amount of your mortgage payment compared to your gross monthly income; your mortgage payment should not be more than 28 to 33 percent of gross monthly income.
Lenders may be more lenient with the ratios if the buyer can make a large down payment. Many mortgage terms are negotiable. There are other ways you can improve your purchasing power.
Gifts are nice! Lenders will allow you to use gift funds for your down payment. A friend or relative can give you the money and sign a gift letter which states that the money is a gift, not a loan that must be repaid.
You can negotiate closing costs; a good real estate professional will provide advice on this and include seller concessions in the purchase agreement. Seller concessions are when the seller agrees to pay a certain amount of allowable closing costs.
There are many government loan programs with special terms to help first-time homebuyers qualify. Some may include reduced interest rates, lower or no down payments and other helpful features. Your real estate agent and your lender should be able to provide information on the various loan programs available to you.
The various loan types with long or short terms, adjustable-rate or fixed interest rates should be considered depending on your mortgage needs. There are significant differences between different loan types that can make one more beneficial than another depending on your individual situation.
Mark Goedert of Goedert Real Estate specializes in working with first-time homebuyers. He assists his clients in choosing the right home and the financing that works best for them. Home buyers who work with a Goedert agent are well prepared to make great decisions based on advice from an experienced real estate professional.
Mark Goedert works with first time home buyers in Marshall, Albion, Okemos, Mason, Rockford, Tecumseh, Brighton, Warren, Temperance, Royal Oak, Ypsilanti, Livonia and other cities and communities in South East Michigan.
Lenders will look at more than just income when considering you for a loan and determining the size of a loan you can qualify for. You may find some creative financing options that help boost your purchasing power.
Pre-Qualification or Pre-Approval
New homebuyers can have their real estate agent or lender pre-qualify them for a loan. This is a quick process that can give you an idea as to the amount of a mortgage you can afford. Pre-approval is a more formal process where a lender verifies all data and agrees in advance that you are qualified for a specific amount. A pre-approval document is much better than a pre-qualifying letter when demonstrating your strength as a homebuyer.
Important Factors to Lenders
Lenders will use several factors to determine how much money they will loan you, including:
• Gross monthly income
• Credit history
• Outstanding debt
• Savings
• Your choice of financing
• Current interest rates
Lenders will gather your financial data to calculate two important ratios; your debt-to-income ratio and your housing expense ratio, to determine how much they will loan you.
Debt-to-income ratio is your total monthly debt (car payment, student loans, credit cards, etc…) compared to your total gross income. Lenders like to see monthly debt at no more than 36 percent of gross monthly income.
Housing expense ratio is the amount of your mortgage payment compared to your gross monthly income; your mortgage payment should not be more than 28 to 33 percent of gross monthly income.
Lenders may be more lenient with the ratios if the buyer can make a large down payment. Many mortgage terms are negotiable. There are other ways you can improve your purchasing power.
Gifts are nice! Lenders will allow you to use gift funds for your down payment. A friend or relative can give you the money and sign a gift letter which states that the money is a gift, not a loan that must be repaid.
You can negotiate closing costs; a good real estate professional will provide advice on this and include seller concessions in the purchase agreement. Seller concessions are when the seller agrees to pay a certain amount of allowable closing costs.
There are many government loan programs with special terms to help first-time homebuyers qualify. Some may include reduced interest rates, lower or no down payments and other helpful features. Your real estate agent and your lender should be able to provide information on the various loan programs available to you.
The various loan types with long or short terms, adjustable-rate or fixed interest rates should be considered depending on your mortgage needs. There are significant differences between different loan types that can make one more beneficial than another depending on your individual situation.
Mark Goedert of Goedert Real Estate specializes in working with first-time homebuyers. He assists his clients in choosing the right home and the financing that works best for them. Home buyers who work with a Goedert agent are well prepared to make great decisions based on advice from an experienced real estate professional.
Mark Goedert works with first time home buyers in Marshall, Albion, Okemos, Mason, Rockford, Tecumseh, Brighton, Warren, Temperance, Royal Oak, Ypsilanti, Livonia and other cities and communities in South East Michigan.
First Time Homebuyer Information: Lenawee County Real Estate Agents help you Prepare your Mortgage Application
As a first time homebuyer a crucial step is getting your finances in order. Once you have a handle on your income and expenses you will have an idea as to how much you can afford and the amount you will need to borrow.
Lenders require verification of income and expense records for each person who will be named on the mortgage and title of the home. You can help move the process along by bringing the following documents with you when you visit a lender:
Proof of Income: Lenders will want to see steady income for the past two years. If you have had several different jobs, be prepared to discuss the reason why.
Bank Statements: Lenders will ask for copies of bank statements to see that you have had a steady history of savings and that you haven’t made a habit of bouncing checks.
Tax Records: Bring at least 2 years income tax returns for the lender to review. This is especially important if you are self-employed. Remember that lenders consider your income as the amount you pay taxes on; not the gross income of your business.
Dividends & Investments: Lenders will consider long-term investment dividends as well as your portfolio when evaluating your income.
Alimony/Child Support: If you are receiving steady payments you can include it in your income; be sure to provide a copy of the divorce/court settlement documents for verification.
Credit Report: All lenders will want to see your credit report which lists all your long-term debts and payment history. Some will accept a recent copy if you have one; otherwise, you will have to pay a fee for them to run it.
Your income, expense and credit score are the main things a lender is going to look at when approving you for a mortgage. Being prepared in advance will also show the lender that you understand what you are getting into.
Mark Goedert of Goedert Real Estate works with first-time homebuyers; he provides information and resources to prepare them for a positive home buying experience.
Mark Goedert of Goedert Real Estate has been in business for over 50 years, working with real estate professionals, agents, developers, investors, REO brokers and first-time home buyers in the Down River area, Calhoun, Hillsdale, Ingham, Jackson, Lenawee, Livingston, Macomb, Monroe, Oakland, Washtenaw, Wayne and South Eastern Michigan Cities and Counties.
Lenders require verification of income and expense records for each person who will be named on the mortgage and title of the home. You can help move the process along by bringing the following documents with you when you visit a lender:
Proof of Income: Lenders will want to see steady income for the past two years. If you have had several different jobs, be prepared to discuss the reason why.
Bank Statements: Lenders will ask for copies of bank statements to see that you have had a steady history of savings and that you haven’t made a habit of bouncing checks.
Tax Records: Bring at least 2 years income tax returns for the lender to review. This is especially important if you are self-employed. Remember that lenders consider your income as the amount you pay taxes on; not the gross income of your business.
Dividends & Investments: Lenders will consider long-term investment dividends as well as your portfolio when evaluating your income.
Alimony/Child Support: If you are receiving steady payments you can include it in your income; be sure to provide a copy of the divorce/court settlement documents for verification.
Credit Report: All lenders will want to see your credit report which lists all your long-term debts and payment history. Some will accept a recent copy if you have one; otherwise, you will have to pay a fee for them to run it.
Your income, expense and credit score are the main things a lender is going to look at when approving you for a mortgage. Being prepared in advance will also show the lender that you understand what you are getting into.
Mark Goedert of Goedert Real Estate works with first-time homebuyers; he provides information and resources to prepare them for a positive home buying experience.
Mark Goedert of Goedert Real Estate has been in business for over 50 years, working with real estate professionals, agents, developers, investors, REO brokers and first-time home buyers in the Down River area, Calhoun, Hillsdale, Ingham, Jackson, Lenawee, Livingston, Macomb, Monroe, Oakland, Washtenaw, Wayne and South Eastern Michigan Cities and Counties.
First Time Home Buyer Information: Wayne County Realtors assist Clients with Reading their Credit Report
Your credit report is an important part of the mortgage application process; lenders want to see your long-term debts including credit cards, car payments, student loans, etc… They will also be looking at your payment history. Some lenders will accept a recent copy of your credit report if you have one; otherwise, you will have to pay a fee for them to run your credit.
In any event, real estate professionals recommend that you get a copy of your credit report several months before you apply for a loan. This way, you can review it to be sure it doesn’t contain any “surprises” or inaccurate data.
Besides your overall credit score, there are several things a lender is looking for when they view your credit report.
Late Payments: The most common problem that reduces credit scores is late payments on a debt. Chances are they won’t be too concerned with one late payment if you have a good history; however, if you are repeatedly making late payments you will need a good explanation. A low credit score or slow payment history might not cause you get turned down for a loan, but you may have to pay a higher interest rate.
Errors: Many people are surprised to find that their credit report contains errors or inaccurate information. If there is inaccurate data on your credit report it is important that you contact the reporting agency or the creditor to get the problem resolved. This can be a slow process so be sure you have plenty of time to clear up errors on your credit report.
Bankruptcies and Foreclosures: Bankruptcies and foreclosures can remain on your credit report for up to 10 years, but they won’t necessarily prevent you from getting approved for a loan. Lenders will often consider the circumstances that led to the financial problems, especially if you have established good credit since the bankruptcy or foreclosure.
A good credit history with no negative information is ideal when you are applying for a mortgage. You want to present yourself as a strong buyer and convince the lender that you will be able to meet your obligation to make timely payments on your loan.
Mark Goedert of Goedert Real Estate has been in business for over 50 years; he specializes in working with first-time home buyers to make the process of applying for a mortgage and buying a home as painless as possible.
Mark Goedert serves clients in the Down River area, Calhoun, Battle Creek, Marshall, Albion, Hillsdale, Ingham, Lansing, Okemos, Mason, Jackson, Lenawee, Adrian, Tecumseh, Hudson, Livingston, Howell, Brighton, Pinckney, Macomb, Sterling Heights, Warren, St. Clair Shores, Monroe, Temperance, Bedford, Oakland, Farmington Hills, Royal Oak, Southfield, Washtenaw, Ann Arbor, Ypsilanti, Saline, Wayne, Detroit, Dearborn, Livonia, Canton, Trenton and more in South East Michigan.
In any event, real estate professionals recommend that you get a copy of your credit report several months before you apply for a loan. This way, you can review it to be sure it doesn’t contain any “surprises” or inaccurate data.
Besides your overall credit score, there are several things a lender is looking for when they view your credit report.
Late Payments: The most common problem that reduces credit scores is late payments on a debt. Chances are they won’t be too concerned with one late payment if you have a good history; however, if you are repeatedly making late payments you will need a good explanation. A low credit score or slow payment history might not cause you get turned down for a loan, but you may have to pay a higher interest rate.
Errors: Many people are surprised to find that their credit report contains errors or inaccurate information. If there is inaccurate data on your credit report it is important that you contact the reporting agency or the creditor to get the problem resolved. This can be a slow process so be sure you have plenty of time to clear up errors on your credit report.
Bankruptcies and Foreclosures: Bankruptcies and foreclosures can remain on your credit report for up to 10 years, but they won’t necessarily prevent you from getting approved for a loan. Lenders will often consider the circumstances that led to the financial problems, especially if you have established good credit since the bankruptcy or foreclosure.
A good credit history with no negative information is ideal when you are applying for a mortgage. You want to present yourself as a strong buyer and convince the lender that you will be able to meet your obligation to make timely payments on your loan.
Mark Goedert of Goedert Real Estate has been in business for over 50 years; he specializes in working with first-time home buyers to make the process of applying for a mortgage and buying a home as painless as possible.
Mark Goedert serves clients in the Down River area, Calhoun, Battle Creek, Marshall, Albion, Hillsdale, Ingham, Lansing, Okemos, Mason, Jackson, Lenawee, Adrian, Tecumseh, Hudson, Livingston, Howell, Brighton, Pinckney, Macomb, Sterling Heights, Warren, St. Clair Shores, Monroe, Temperance, Bedford, Oakland, Farmington Hills, Royal Oak, Southfield, Washtenaw, Ann Arbor, Ypsilanti, Saline, Wayne, Detroit, Dearborn, Livonia, Canton, Trenton and more in South East Michigan.
Home Buyer Resources: Working with a Livingston County Real Estate Agent
The home buying process can be complicated, especially if you do not work with a real estate professional who is looking out for your best interest. There are several different types of real estate agents; each with different priorities. Choosing the right real estate agent is critical. Here are the three main types of realtors:
Seller’s Agent
Many agents do most of their work as seller’s agents; they have an agreement with the owners of properties that are for sale. The realtor tries to sell their property by showing it to buyers and marketing it to other agents. They generally receive a commission based on a percentage of the final sales price.
The seller’s agent is loyal to the seller; legal and professional codes require a seller’s agent to work in the best interest of the seller. A seller’s agent will avoid saying anything detrimental to the seller’s interest; however, the same laws prohibit them from hiding important information about the property. For example, structural problems must be disclosed.
The seller’s agent will work hard to get the seller the highest price possible for their property; therefore, earning the highest commission possible.
Buyer’s Agent
A buyer’s agent works in the buyer’s best interest; their primary objective is to get the buyer a home for the lowest price possible. They look for properties that fit the buyer’s desired criteria and represent the buyer when they negotiate the price. A buyer’s agent is not allowed to do anything that will hurt their chances of getting a property for the lowest price possible.
Sometimes a buyer’s agent will charge their client a fee; however, in most cases, the seller’s agent will negotiate a deal to split their commission with the buyer’s agent.
Dual Agent
This is rare; a dual agent is a realtor who is working as a seller’s agent for a particular property and also representing an interested buyer. This can get complicated because the agent is required to represent the interest of the buyer and the seller.
The dual agent is prohibited from sharing too much information about one party with the other. If you are working with a dual agent, remember that their loyalty is divided. Dual agents work out best if the buyer is willing to pay the seller’s asking price and both parties want to close quickly.
Mark Goedert of Goedert Real Estate has been working with home buyers, sellers, agents and investors for over 50 years. His team of real estate professionals works hard to make the home buying and selling process a positive experience for all parties involved.
Mark Goedert of Goedert Real Estate has been in business for over 50 years, working with real estate professionals, agents, developers, investors, REO brokers and first-time home buyers in Mason, Hudson, Pinckney, St. Clair Shores, Bedford, Southfield, Saline, Canton, Trenton and neighboring cities and communities in the Down River Area.
Seller’s Agent
Many agents do most of their work as seller’s agents; they have an agreement with the owners of properties that are for sale. The realtor tries to sell their property by showing it to buyers and marketing it to other agents. They generally receive a commission based on a percentage of the final sales price.
The seller’s agent is loyal to the seller; legal and professional codes require a seller’s agent to work in the best interest of the seller. A seller’s agent will avoid saying anything detrimental to the seller’s interest; however, the same laws prohibit them from hiding important information about the property. For example, structural problems must be disclosed.
The seller’s agent will work hard to get the seller the highest price possible for their property; therefore, earning the highest commission possible.
Buyer’s Agent
A buyer’s agent works in the buyer’s best interest; their primary objective is to get the buyer a home for the lowest price possible. They look for properties that fit the buyer’s desired criteria and represent the buyer when they negotiate the price. A buyer’s agent is not allowed to do anything that will hurt their chances of getting a property for the lowest price possible.
Sometimes a buyer’s agent will charge their client a fee; however, in most cases, the seller’s agent will negotiate a deal to split their commission with the buyer’s agent.
Dual Agent
This is rare; a dual agent is a realtor who is working as a seller’s agent for a particular property and also representing an interested buyer. This can get complicated because the agent is required to represent the interest of the buyer and the seller.
The dual agent is prohibited from sharing too much information about one party with the other. If you are working with a dual agent, remember that their loyalty is divided. Dual agents work out best if the buyer is willing to pay the seller’s asking price and both parties want to close quickly.
Mark Goedert of Goedert Real Estate has been working with home buyers, sellers, agents and investors for over 50 years. His team of real estate professionals works hard to make the home buying and selling process a positive experience for all parties involved.
Mark Goedert of Goedert Real Estate has been in business for over 50 years, working with real estate professionals, agents, developers, investors, REO brokers and first-time home buyers in Mason, Hudson, Pinckney, St. Clair Shores, Bedford, Southfield, Saline, Canton, Trenton and neighboring cities and communities in the Down River Area.
First Time Home Buyer Tips: Finding a Home with a Monroe County Realtor
There really is no great secret to finding a home. Though there are countless theories and techniques, finding a house comes down to perseverance and luck. You must be willing to work at putting yourself in the right place at the right time to find your dream home.
Start by looking at your budget to determine how much you are able to pay for a home. Consider your needs and your desired criteria for a home; number of bedrooms, basement or crawl, garage or shed, lot size, neighborhood, etc…
Do some preliminary research on your own; look at listings in the news paper or check the internet to get an idea of what is available and how much the asking prices are for homes that fit your criteria. Just look; do not call the number listed in the ad! When you are ready to see homes you will want to work with a real estate agent who will represent you to see that you are getting the best deal possible.
There are several reasons you should work with a realtor, including saving time and having a professional handle the paperwork. An agent who is familiar with the area you are looking in will be most helpful in finding a home that meets your desired criteria and fits your budget.
Some people feel that the most cost-effective method is to do it themselves. There are data bases containing real estate listings with public records data, area information, interactive maps and other details. Most of these data bases require a license and a membership fee to access the listings. Some are available to the public for no charge, but you must supply your personal contact information and email address for access.
There are specialized services to accommodate the do-it-yourself home buyer, but this is only recommended for experienced buyers. A first-time home buyer should work with a realtor.
Mark Goedert of Goedert Real Estate has been working with home buyers and real estate investors for over 50 years. He provides detailed property listings with search tools, a mortgage calculator, and a wealth of information and tips for buyers and sellers. Mark’s information is available to the public; no fees or membership requirements.
Mark Goedert serves clients in the Down River area, Calhoun, Hillsdale, Ingham, Jackson, Lenawee, Livingston, Macomb, Monroe, Oakland, Washtenaw, Wayne and South Eastern Michigan Cities and Counties.
Start by looking at your budget to determine how much you are able to pay for a home. Consider your needs and your desired criteria for a home; number of bedrooms, basement or crawl, garage or shed, lot size, neighborhood, etc…
Do some preliminary research on your own; look at listings in the news paper or check the internet to get an idea of what is available and how much the asking prices are for homes that fit your criteria. Just look; do not call the number listed in the ad! When you are ready to see homes you will want to work with a real estate agent who will represent you to see that you are getting the best deal possible.
There are several reasons you should work with a realtor, including saving time and having a professional handle the paperwork. An agent who is familiar with the area you are looking in will be most helpful in finding a home that meets your desired criteria and fits your budget.
Some people feel that the most cost-effective method is to do it themselves. There are data bases containing real estate listings with public records data, area information, interactive maps and other details. Most of these data bases require a license and a membership fee to access the listings. Some are available to the public for no charge, but you must supply your personal contact information and email address for access.
There are specialized services to accommodate the do-it-yourself home buyer, but this is only recommended for experienced buyers. A first-time home buyer should work with a realtor.
Mark Goedert of Goedert Real Estate has been working with home buyers and real estate investors for over 50 years. He provides detailed property listings with search tools, a mortgage calculator, and a wealth of information and tips for buyers and sellers. Mark’s information is available to the public; no fees or membership requirements.
Mark Goedert serves clients in the Down River area, Calhoun, Hillsdale, Ingham, Jackson, Lenawee, Livingston, Macomb, Monroe, Oakland, Washtenaw, Wayne and South Eastern Michigan Cities and Counties.
Monday, August 10, 2009
Moving Tips from Relocation Experts in South East Michigan
There are several important things you should know before you hire a mover. The first two things to remember throughout the process is to keep your cool and plan ahead.
Scratches happen; nerves get frayed. Keep things in perspective; know that you cannot prevent every little accident, but you can take steps to avoid most surprises. Hiring professional movers can save you from making some expensive mistakes. Here are some tips to help your move go smoothly:
Advance Research for you to do:
• Find out about the company’s record; check reference
• Check with the Better Business Bureau for consumer complaints
• Verify the status of their licenses with the US DOT, State DOT or ICC
• Check into the amount of liability protection the moving company provides for lost or damaged goods. Also check with your agent to see if your current homeowners’ insurance can be used as a supplement or if you need to buy additional transit insurance.
• Document a complete inventory of your belongings before you pack
• Find out about the moving services the company provides
Communication with the Movers:
• Make sure the movers know how many stairs there are at your new home
• Let the movers know if there are any low-hanging utility wires or tree branches in your current home or at the new home that may impede the moving truck
Complete the Contract
• Ask about special gratuities and commit them in writing
• Be sure the contract includes a guarantee of how long the job will take
• Make sure the contract is clear and includes all charges and important dates and times, including packing, pick-up, delivery, etc…
• Supervise the entire loading process; do not leave your home before the movers are ready to head to your new home. You will have to sign a bill of lading when the truck is loaded.
How you can help the Movers
• Make sure everything is ready when the movers arrive. Coffee and refreshments are a nice personal gesture to warm them up to you; remember, they’re moving your prized possessions. You might also consider buying pizza for lunc.
• Good communication is key; be available to answer questions and be sure to address anything that makes you uncomfortable. At the same time, remember that they do this for a living; be careful not to micromanage the movers.
• Keep a positive attitude; keep your mood light and spirits up.
• Have plenty of bottled water available to keep hydrated; the move is hectic enough without adding a trip to the hospital.
Additional Tips
• Some of your things are difficult to impossible to replace, so you will want to pack them separately and move them in your vehicle. This includes important documents like wills or deeds, jewelry, computers, art work, photos and home videos to name a few.
• Do a final clean-up in the home; sweep, vacuum, and fill holes in the walls. This could make a big difference in your security deposit if you are renting.
Moving is a big job. Advance preparation and organization is key to making the move go smoothly. Your real estate professional should be able to provide advice and refer a good moving company to assist you.
Mark Goedert of Goedert Real Estate is a relocation expert who provides information and resources to home buyers, including tips on packing, organizing, and hiring movers.
Mark Goedert of Goedert Real Estate has been in business for over 50 years, working with real estate professionals, agents, developers, investors, REO brokers and first-time home buyers in Mason, Hudson, Pinckney, St. Clair Shores, Bedford, Southfield, Saline, Canton, Trenton and neighboring cities and communities in the Down River Area.
Scratches happen; nerves get frayed. Keep things in perspective; know that you cannot prevent every little accident, but you can take steps to avoid most surprises. Hiring professional movers can save you from making some expensive mistakes. Here are some tips to help your move go smoothly:
Advance Research for you to do:
• Find out about the company’s record; check reference
• Check with the Better Business Bureau for consumer complaints
• Verify the status of their licenses with the US DOT, State DOT or ICC
• Check into the amount of liability protection the moving company provides for lost or damaged goods. Also check with your agent to see if your current homeowners’ insurance can be used as a supplement or if you need to buy additional transit insurance.
• Document a complete inventory of your belongings before you pack
• Find out about the moving services the company provides
Communication with the Movers:
• Make sure the movers know how many stairs there are at your new home
• Let the movers know if there are any low-hanging utility wires or tree branches in your current home or at the new home that may impede the moving truck
Complete the Contract
• Ask about special gratuities and commit them in writing
• Be sure the contract includes a guarantee of how long the job will take
• Make sure the contract is clear and includes all charges and important dates and times, including packing, pick-up, delivery, etc…
• Supervise the entire loading process; do not leave your home before the movers are ready to head to your new home. You will have to sign a bill of lading when the truck is loaded.
How you can help the Movers
• Make sure everything is ready when the movers arrive. Coffee and refreshments are a nice personal gesture to warm them up to you; remember, they’re moving your prized possessions. You might also consider buying pizza for lunc.
• Good communication is key; be available to answer questions and be sure to address anything that makes you uncomfortable. At the same time, remember that they do this for a living; be careful not to micromanage the movers.
• Keep a positive attitude; keep your mood light and spirits up.
• Have plenty of bottled water available to keep hydrated; the move is hectic enough without adding a trip to the hospital.
Additional Tips
• Some of your things are difficult to impossible to replace, so you will want to pack them separately and move them in your vehicle. This includes important documents like wills or deeds, jewelry, computers, art work, photos and home videos to name a few.
• Do a final clean-up in the home; sweep, vacuum, and fill holes in the walls. This could make a big difference in your security deposit if you are renting.
Moving is a big job. Advance preparation and organization is key to making the move go smoothly. Your real estate professional should be able to provide advice and refer a good moving company to assist you.
Mark Goedert of Goedert Real Estate is a relocation expert who provides information and resources to home buyers, including tips on packing, organizing, and hiring movers.
Mark Goedert of Goedert Real Estate has been in business for over 50 years, working with real estate professionals, agents, developers, investors, REO brokers and first-time home buyers in Mason, Hudson, Pinckney, St. Clair Shores, Bedford, Southfield, Saline, Canton, Trenton and neighboring cities and communities in the Down River Area.
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