Buyers

While the thought of paying a mortgage is more enticing than paying rent, it's important to understand all the costs involved in buying and owning a home as you determine whether you can afford to join the ranks of homeowners. Potential buyers sometimes forget to factor in the down payment, homeowners insurance and the possibility of depreciation, as well as the costs associated with closing the transaction, moving, purchasing major appliances, and home, landscape and pool maintenance, not to mention furnishings and design accessories once you move in…

Private Mortgage Insurance (PMI). PMI is a monthly fee that the borrower pays if the first trust loan exceeds 80 percent of the purchase price. Since a lower down payment results in a statistically higher risk to the lender, PMI insures a portion of the loan to reduce the risk to the lender. Thanks to creative lenders, however, a borrower can still put as little as no money down and avoid PMI by taking out two loans. Ask your loan officer about loan packages with no PMI, sometimes called "piggy-back" financing…

Since Sept. 11, more and more Americans have pushed safety and security high on their list of requirements for the community where they might buy a home. Some are reconsidering the allure of big city urban living, especially when a greater use of technology can permit them to live virtually anywhere and telecommute to the city for work. Based on largely anecdotal evidence obtained from real estate agent interviews Forbes.com recently produced "The Best Houses in the Safest Places," a survey for luxury homes off the beaten path. The magazine found 16 cities in 11 states it deemed as "conceivably" safer than big cities…

Don't be discouraged about this scenario, however. Keep in mind with 30-year fixed rate mortgages going for under 6 percent right now, high interest rates in today's market, means 8 - 10 percent. My first mortgage was a 2-1 buy down with perfect credit and my interest rate started at 10 percent and went up a percentage point per year for the next two years - interest rates are really all a matter of perspective. Should you wait to sell/buy property? I get this question a lot. Real estate is a great investment no matter when you buy - if you're willing to let time work in your favor. Obviously, there are peaks and valleys in the real estate market just like any other investment…

Most of the time, people have good intentions, but as a buyer, you need to protect yourself from mistakes the seller may make in giving you proper disclosures. This is especially important when it comes to environmental issues such as water damage that can lead to mold. While Realtor organizations are attempting to make it more difficult for sellers to conceal defects from buyers, state-mandated disclosures are often still a matter of interpretation. Some sellers may intend to provide proper disclosure, but may leave off material facts because they don't realize the significance…

If you're in the process of searching for or buying a home, you've probably been advised to have a home inspection. But there's another test that you'll want to make sure your potential home -- or, if you don't have plans to move, your current home -- passes - the radon test. Radon, a colorless and odorless decay product of uranium that occurs naturally in soil and rock, has been identified as a leading cause of lung cancer in the United States. It causes 15,000 to 22,000 deaths a year. Radon can enter your home from the ground through cracks in walls, basement floors and foundations, and the risk of exposure increases during colder months when we keep our windows and doors closed and spend more time indoors…

The description on a piece of property may read "diamond in the rough." Which means either it needs lots of work or perhaps just a little TLC. But exactly how "rough" can a house be before a lender decides the collateral is not healthy enough to issue a mortgage? And what happens if you want the seller to fix something before you'll close the deal? Upon contract, one of the first things you'll want to do is have the home inspected for structural integrity, defects and potential problems. Note this is not the function of a licensed appraiser who determines the market value for the home…

President Bush has signed a funding bill for the Department of Housing and Urban Development that gives life to a housing program first proposed by then candidate Bush during the 2000 campaign. The measure also authorizes the Federal Housing Administration (FHA) to begin backing hybrid adjustable rate mortgages and increases the loan ceiling on FHA-insured multi-family mortgages. Under the "American Dream Down Payment Assistance" program, Uncle Sam would match $3 for every $1 contributed by a bank or other private lending institution or individual towards a down payment, closing costs or a "soft" second mortgage that need not be paid back as long as the borrower meets certain conditions. The appropriations bill earmarks $50 million for the program, enough by Administration estimates to get 30,000 potential buyers over the hump and on their way towards home ownership. Assistance of up to $1,500 would be available to first-time buyers with incomes at or below 80 percent of the median for their areas…

Your boyfriend will be paying half of the mortgage and half of the utilities. Does he have any interest in obtaining half of the property in the future - whether or not you stay together as a couple? Does he believe that he will be obtaining any ownership rights because he is making these payments? What about furniture? Will you be furnishing the entire house, or will your friend share in these expenses? What happens should you decide to split? Will you be able to afford to carry the house on your own, or will you need to get a roommate to assist you financially? If both of you were to go on title, the law is universal in the United States…

"Facts, m'am. Just the facts" was the constant refrain of Sergeant Joe Friday of the television series "Dragnet" in the 1950s. More than fifty years later in the real estate industry, a very special type of sergeant, the buyer's agent, performs an equally valuable service -- dispensing and interpreting facts for his buyer/client. The buyer' agent's mission? To provide the client with a high-level of interpretation, even if it means walking away from the bulk of compensation should a sale not be consummated?…