Category Archives: Guide to Homeownership

When is it Time to Buy a House?

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Sellers can feel pressure when trying to decide whether to accept a buyer offer on their home. While real estate professionals can advise clients on whether to accept an offer, the final decision is up to the seller–and it can be an agonizing one. In the current buyer’s market, buyers aren’t shy about making lowball offers to sellers either. So when should you accept or decline an offer? Realty Times recently offered the following questions for sellers to consider.

  • Is the buyer pre-qualified/approved? You may not want to risk a deal falling through because the buyer wasn’t pre-qualified for a loan. Note: We would like to add that a pre-approval is the only standard for a qualified buyer as a “pre-qualification” is not binding. If you need help getting pre-approved or getting potential buyers pre-approved, please contact us.
  • Do you need to move quickly? If you need to move quickly–due to a job relocation or to avoid foreclosure–you may need to accept an offer that is less than what you want.
  • Can you accept a loss? Be sure to take closing costs into consideration too as you weigh whether you can even afford to agree to the buyer’s offer.

Realty Times also suggests sellers take into account how long their home has been on the market and the number of showings. Such considerations also can help sellers determine whether getting a better offer soon is realistic and would be worth the wait. Source: Realty Times

VA Mortgage Program

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John Adams Mortgage Company - VA Program

John Adams Mortgage Company announces our Veterans and Active Military VA Mortgage Program.

The VA program is as strong as ever about offering to help our military with their housing needs.

Benefits are listed below:

  •   No down payment required.
  •  Seller can pay all closing costs.
  • Gifts can be used for all cash requirements.
  •     Refinances of present VA loans without         re-qualification.
  •   Refi non-VA loans with cash out.
  •   Help for those with credit issues.
  • Those on VA disability may be eligible for funding fee exemption.

Talk to a John Adams Mortgage professional to learn about the road to homeownership today.

What mortgage lenders need from the buyer

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There are a few documents required of buyers that mortgage lenders may need during the application process. Below are some documents you may need to gather in case a lender needs them:

1. Federal tax returns and W-2 forms from the past two years.

2. Copy of your pay stubs received in the last month.

3. Proof of other income from a second job, overtime, commissions/bonuses, alimony, retirement, etc.

4. Investment records of mutual fund statements, stock certificates or proof of other investments and assets.

5. List of student loans, car loans, credit debt, child support and other debts to show proof of your minimum monthly payments and total balances.

Not all mortgage lenders may ask of the above documentation. But make sure these items are on hand during the time of the application process.

 

Money Basics: Controlling Debt

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Some debt is good debt such as a mortgage or student loan. Below are a few things to know to save you from the pit of massive debt.

1. Pay back your loans. Make sure you don’t borrow more than you can afford to pay back. Whether it is a student or mortgage loan and credit cards. Shop for the best rates.

2. Handle your spending. Avoid using your credit card to pay for items you want or need so quickly without knowing if you can afford to pay off the monthly bill in full.

3. Spend less, save more. In other words, spend on items you need than on items you want. Writing a list of these items will help you put your spending habits in check.

4. Save.Save.Save. Have a safety nest of cash worth three to six months of living expenses in case of an emergency.

5. Pay off your highest – rate debts first. Pay off the balances of loans or credit cards that charge the most interest. Continue to pay at least the minimum on all your other debt.

We suggest speaking with a reputable debt counseling agency that is able to help you in managing your finances and to consolidate your debt.

Word of the Day: Biweekly Mortgage

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Word of the Day: Biweekly Mortgage  

A mortgage in which you make payments every two weeks instead of once a month. Instead of making twelve payments during the year, you make thirteen. An extra payment reduces the principal (reducing the time it takes to pay off a thirty year mortgage).

Talk to a John Adams Mortgage professional to find out more about the road to homeownership today.

Save your home: 4 ways to get assistance

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If you are having a hard time paying your mortgage, there are a few ways below to get assistance. But before you consider getting government help, speak with your mortgage lender about immediate options such as reinstatement, refinancing and forbearance.

1. Mortgage Assistance Programs Through the State

Mortgage assistance varies by state with your state housing authority. But check to see if you qualify for such programs such as the Hardest Hit Fund.

2. HUD‘s Emergency Homeowners Loan Program

This program helps out-of-work home owners pay their mortgage up to 24 months. Visit www.hud.gov for information.

3. Neighborworks America’s National Foreclosure Mitigation Counseling Program 

Go to www.findaforeclosurecounselor.org to find out how you can receive a loan modification.

4. NACA‘s Homesave Program 

The Neighborhood Assistance Corporation of America (NACA), works with home owners and lenders to restructure existing mortgages and reduce interest rates. For more information visit www.naca.com.