Happy New Year again everyone! We are back in town and the real estate sales market seems to be picking up already! Good news after a pretty slow December/Holiday break. Below is a little insurance blog info but one thing to think about- Umbrella Policy. If you own a rental home or something similar talk to your agent about a one million umbrella policy. It’s cheap and worth the money. We have 2 million just to be safe.
Take Care- Hayes Team
Insuring Your New Home
Your home is your castle, so the saying goes. And you’re going to want to protect it. Homeowners insurance can give you just the protection you need. It provides coverage if your home is damaged or destroyed. It also covers your family’s possessions and provides you with compensation for liability claims, medical expenses, and other expenditures that result from property damage and bodily injury suffered by others.
Why you need it
If you finance your home, your mortgage lender will require it. But even if you own your home outright, you still need homeowners insurance to protect that which you can’t afford to lose. Without homeowners insurance, all of that hard work can go down the drain in a matter of minutes when, for example, a tornado devastates your house, a burglar robs and vandalizes your home, or your dog bites and severely injures your neighbor.
Your policy may cover not only the cost of the damage but also your living expenses (up to a limit) while you wait for your home to be repaired. But be aware that homeowners insurance does not cover a wide variety of perils (e.g., flood, earthquake damage). You may need to purchase an endorsement or separate insurance policy to ensure adequate coverage in these instances.
Purchasing homeowners insurance
If you have a trusted insurance advisor, discuss your needs and potential new home with them. They can show you ways to save money and ensure the maximum protection you need. If you need to find one, log in to the Faculty section of MFIC or call us for a personal introduction.
Homeowners insurance policies are written individually, typically at the time you purchase a home or when you take out a mortgage on a home. For the most part, you’ll want to purchase enough property coverage to cover the replacement cost of your home and its contents. The amount of liability coverage you’ll need to purchase will depend on the assets you would like to protect (e.g., home, car, investments). Your lender will also require a certain minimum amount of coverage, so be sure to have your mortgage professional discuss with your insurance agent.
Day 3 of our Hawaiian adventure in Kauai without the kiddos. We had a fun new years eve and actually made it it midnight. Yesterday we thought we would try a short 4 mile hike on the breathtaking Nali Pa coastline. 2 miles into to a secluded beach and 2 miles out. Being we are from Oregon we thought no big deal. Each mile takes just over an hour and the ENTIRE hike was huge slippery rocks. We were smart enough not to attempt this when it was not raining but it really didn’t matter. Half the people took off their shoes and were covered in mud up to their knees. The views were spectacular and it was once in a lifetime opportunity but we are so thankful we brought proper hiking boots and camelbacks.
Today is relaxing recover day and of course watch our Ducks. Snorkeling with the turtles tomorrow and kayak/hike Wednesday to a waterfall with a refreshing swimming hole.
Aloha and Go Ducks!
Hi Everyone, Prices are low and rates are still down. This is the year to invest in real estate!
Info below courtesy of Phil Lyman of Mortgage Trust. I’ve worked with Phil for nearly 10 years and he’s the best. Contact him at at 503.997.2545 or email@example.com
Make it a great week! Michelle Hayes
Applying for a mortgage
With all of the paperwork and questions that you need
to answer, applying for a mortgage can be stressful. But knowing what’s involved
in the process can make things a lot easier. Here’s some information to get you started.
Before you apply
Do some homework before you apply for a mortgage. Think about what type of home you want, what your budget will allow, and what type of mortgage you might seek. Later in this series you will learn about some of the most common types of mortgages and what might make the most sense for you.
It can be a good idea to obtain a copy of your credit report, and make sure it’s accurate.
Be prepared to answer any questions that a lender might have of you, and be open and straightforward about your circumstances.
What you’ll need when you apply
Be prepared to provide your mortgage professional
a lot of information about you (and, at some point, about the house you’ll buy)
to determine your loan eligibility. He or she will provide you a list of what is
needed, but here is a general idea to help you prepare:
Asset statements, including the name and address of your bank, your account numbers, and statements for the past three months
Investment statements for the past three months
Pay stubs, W-2 withholding forms, or other proof of employment and income
Tax returns, both personal and business, if you’re self-employed or own investment real estate
Information on consumer debt (account numbers and amounts due). A credit report may suffice for this; just ask your lender.
Divorce settlement papers or bankruptcy papers, if applicable
You’ll sign authorizations that allow the lender to verify your income and bank accounts, and to obtain a copy of your credit report. If you’ve already made an offer on a house or condo, you’ll need to give the lender a purchase contract and a receipt for any good-faith deposit that you might have given the seller.
Good info. courtesy of Phil Lyman of Mortgage Trust. Let me know if you would like to be set up with my Financial Independence Program. Lots of good stuff not just about home buying. Have a great week! Michelle
How much will you need for a down payment?
In the past, lenders usually required a down payment of at least 20 percent of the purchase price of a home. Nowadays that’s no longer the case. Instead, the amount of your down payment will depend on a variety of factors, such as the amount of money you have saved for your home purchase, your current financial situation, and your feelings toward other investment options.
Can you get a low down payment mortgage?
Today, many lenders are approving loans with lower down payments. In addition, certain private and government entities have low down payment programs.
You may be able to get a Federal Housing Administration (FHA) mortgage with a down payment of as little as 3.5 percent, making this mortgage very attractive to first-time home buyers.
Department of Veterans Affairs (VA) mortgages are another low down payment option. VA mortgages are available to qualified veterans and their surviving spouses. VA mortgage terms are also generally very attractive, and in many cases, little or no down payment is required.
You may be able to obtain a conventional mortgage with a down payment of less than 20 percent with the help of private mortgage insurance (PMI). You will learn much more about Private Mortgage Insurance (PMI) later in this series.
What about larger down payments?
If you have more than 20 percent to put down, you may still want to take the time to weigh your down payment options. With a larger down payment, you will reduce the amount of your mortgage and thus the amount of interest you will pay. Keep in mind, however, that there may be situations where you might not want to make a large down payment. For example, you may want to keep the money in your emergency cash reserve. Or, you may want to put the money toward other investment opportunities.
I get calls and emails daily with questions on how a short sale works. This article gives you a quick break down on how to get started. Call me with more questions to see if it’s the right fit for you. We were number 3 in the US for 2009 and 2010 for the highest amount of foreclosure notices in the country…..
- Michelle 503.349.7082
1. Contact your lender. If you have fallen behind at least two months in your monthly mortgage payment, contact your lender and ask about its short sale requirements. Each lender will have its own requirements, but in general, you will have to owe more on your home than it is worth, be 60 to 90 days in arrears, and be able to sell your home in three to 12 months. Your lender also will conduct a inspection to ensure your home complies with HUD guidelines.Lenders in states with higher foreclosure rates will be more likely to accept a short sale–the state of Oregon ranks 3rd in the country, 1 of 517 households received a foreclosure notice in May of 2010, as recorded by Realty Trac.com.
2 Estimate the value of your house. Upon acceptance of your short sale with the bank, get a valuation of your home. Go to your local county recorder’s or county property appraiser’s website and search for homes that have sold within the past three months that have the comparable livable square feet, bedrooms, and bathrooms.
Add up the selling price of all the properties and divide it by the number of sold properties–this will yield the average selling price and will also give you an estimate for how much to sell your home. The higher the foreclosure rate, the less the home will sell for. For instance, in Multnomha County, the foreclosure rate is the highest with an average of 507 foreclosures, while Josephine County has an average of just 71 foreclosures, according to Realty Trac.com.
Hire a real estate broker. Contact a local real estate broker that specializes in foreclosures and short sales. A broker guides you through the process of preparing your home for sale and networks with other brokers to find potential buyers. An experienced broker also can represent you to lenders and negotiate details of your short-sale contract, such as agreed selling price and closing dates.
List your home for sale. You real estate broker will list and market your house. However, you can aid in the sale by spreading the word through your place of work, social networking websites, free Internet listing websites such as Craigslist.com, through church groups, and family and friends.
How can we possibly save for retirement and our child’s college education at the same time?
It’s seldom easy to achieve a balance between saving for your retirement and saving for the ever-increasing costs of a college education within your present income. Yet it’s imperative that you save for both at the same time. To postpone saving for your retirement means missing out on years of tax-deferred growth and playing a near-impossible game of catch-up. To accomplish both goals, you may need to compromise.
The first step is to thoroughly examine your funding needs for both college and retirement. On the retirement side, remember to include the estimated value of any employer pension plans, as well as your Social Security benefits. This evaluation will likely prompt you to examine some deeply held beliefs about your financial goals.
For example, is it important that you travel regularly in retirement, or is it more important that your child attend a prestigious Ivy League college?
If you discover that you can’t afford to save for both goals, the second step is to consider some compromises:
Defer your retirement and work longer.
Reduce your standard of living, now or in retirement.
Increase the family income by seeking a better paying position in your present career, getting a second job, or having a previously stay-at-home spouse join the work force. Beware, though, of potential drawbacks like day-care costs, commuting costs, and tax disadvantages on the increased income.
Seek out more aggressive investments (but beware of the risks).
Expect your child to contribute more money to college. Some parents may find it difficult to accept, but the majority of college students finance a portion of their education with student loans.
Investigate less expensive colleges. You may find that some less expensive state universities have more to offer in certain programs than their pricey private counterparts.
The third step is to re-evaluate your plan from time to time as your circumstances and wishes change. Remember, the important thing is to earmark a portion of your present income for both goals and do the best you can.
C-RIS E-note December, 2011 Tomorrow’s Apartment Across the U.S., we are now seeing the first wave of post-recession apartment developments beginning to come out of the ground. The trend seems to be for smaller but denser projects, due in part to financing constraints. These new developments feature one-bedroom units with a footprint that is typically smaller by about 20%: Unit size for student housing averages 600 sq. ft., 700 sq. ft. for mid-market projects, and 800 sq. ft. for luxury units. Features include galley-style kitchens, open living spaces and narrower bedrooms. Even though the kitchens are smaller, the materials tend to be high-end – granite, etc. Common areas are also changing. They are tending to look like business centers, cafes, and lobbies. Clubhouse media rooms are giving way to being part of outdoor barbecue, pool, and/or rooftop deck areas. Watch your own local area, and see if these trends ring true! This information is from Commercial Investment Real Estate, a bimonthly publication of the CCIM Institute, Nov/Dec. 2011 issue. This e-note is provided as information only, and is not guaranteed.