Freguently Asked Real Estate Questions-Ep. 5

Should I buy now or wait?

If you are using FHA financing to purchase your next home, I would suggest buying BEFORE April 18th. I follow the real estate blog kcmblog.com, which stands for keeping current matters, and the information below about FHA loans was recently posted.

The administration recently announced increases to the insurance premiums that the Federal Housing Administration (FHA) charges. FHA is the dominant loan program in the marketplace today. The FHA has two types of Mortgage Insurance Premiums – Up Front Mortgage Insurance Premium (UFMIP) and the Monthly Mortgage Insurance Premium (MMIP).

UFMIP is typically added to the loan amount and financed over the term of the loan. MMIP is part of the monthly mortgage payment for a minimum of five years and a maximum of fourteen, depending on the loan-to-value.

For the majority of FHA Insured loans, the MMIP will be increasing .25% effective April 18th which is, in effect, equivalent to a .25% increase in interest rates. The income ratios that lenders use in qualifying borrowers look at the total payment. Therefore, the MMIP hike has the same impact on affordability as a rate hike. Higher monthly costs mean lower loan amounts and lower loan amounts mean lower offers that borrowers can make on houses. This will translate into lower sales prices. Nothing is good in this news. The increase in Annual Mortgage Insurance Premiums for forward mortgage amortization terms is effective for case numbers assigned on or after April 18, 2011.

For example using a 30 year term with a sales price of $163,000, currently the FHA monthly MIP is $118 a month, after April 18th it will be $151, this is a $33 increase in your monthly payment.

FHA loans allow you to get into a house for as little as a 3.5% down payment. I know some of the best mortgage professionals in Omaha. Call me for a referral if you need to get preapproved quickly. Interest rates are still really low. If you are thinking of buying, you can get the best deal now before the increase, so don’t wait!

Frequently Asked Real Estate Questions-Ep. 4

What can I do to enhance my curb appeal?

In the winter months it can be a difficult task to increase your curb appeal. Most importantly during that time, be sure you keep your sidewalks and driveway clear of snow and ice at ALL times. In spring and summer, make sure you keep the sidewalks and driveway swept and clean. And of course in the fall, clean up the leaves. You can always add more color by using tasteful decorations that coincide with the season or an upcoming holiday. You can plant flowers in the spring and summer or use artificial flowers or wreaths in the winter months. Some other easy ways to add color would be to paint your front door and or shutters.

Some larger items that are sure to increase your curb appeal would be to replace your entry door, Garage door and siding. Entry door replacement can really make a big difference. Just make sure it matches the style of your house and the rest of the neighborhood. Garage door replacement, I would advise you spend the extra money to get an insulated door. Some buyers will use the garage as a workshop and will want it to be insulated. Siding replacement will give your house a face lift. This upgrade costs more than the others, so be sure you truly need it before spending the money on it.

I offer my clients a free no obligation meeting when they are considering putting their home up for sale. When we meet, we talk about what to expect when you hire me, what is the best price to list your house at and what things you should improve or spend money on PRIOR to listing your home. This allows you to budget and plan accordingly. We can discuss if you need a major face lift, like siding, or just a splash of color. I will help you figure out what is best to enhance your homes curb appeal. It does not have to cost a lot of money to make your house stand out from the competition.

Thinking of selling this year? Call me today and I can help you get ready.

Frequently Asked Real Estate Questions-Ep. 3

Do pictures really matter?

YES! They are EXTREMELY important. You only have one chance to make a great first impression with a potential buyer. When you are selling your home you need to make sure it shows its best at all times, but most importantly in the pictures. Over 80% of buyers are looking for their new home online and looking at the pictures of your home.

I have a PROFESSIONAL photographer handle the photography for all my listings. When you list your home with me you get the best presentation possible. I work with Paula Moser of Paula Moser Photography. She was voted the number one wedding photographer in 2010 from theknot.com. You can check out her work at www.paulamoser.com.

Great pictures will get the buyer looking at your house online and then set up an appointment to see it. There is so much competition in the market right now, you must be sure your house stands out from the rest. Make sure you invest the time to make your home picture perfect and hire an agent who will do the same.

Keep me in mind if you know of anyone looking to buy, sell or invest in real estate. I appreciate the opportunity to earn their business!