Real Estate Tip if you are self employed

There's no question that it could be more difficult for you to get a mortgage loan if you are a free lance viola player than if you are a government accountant. Traditionally, lenders have been more cautious when evaluating loan applications of buyers who are self-employed than people who work for a regular salary.

However, if you are self-employed, there is no reason for you to shy away from applying for a home mortgage loan, especially if your earnings have been in the same field for at least two years. It is a good idea to meet with one or more loan officers before you begin your search. They will probably want to analyze your tax returns for the past 2 or 3 years, keeping in mind that many self employed people can look impoverished on paper, since you can write off some expenses that salaried individuals can not. Try to get pre-approval from the lender, and ask for a letter stating that you have pre-qualified for a loan which your real estate agent can attach to any offer you submit on a home. This will make you more attractive to the sellers.

Sellers want communication

Sellers want communication. Most agents think the only thing homeowners want when they list with an agent is to sell their house. Of course this is important, but from the time they list with you to the time it sells, the No. 1 thing they want is communication. A frequent complaint about agents is that they list homes and are never heard from again. So keep in touch with the seller through various means, such as phone calls, e-mails, notes, and face-to-face meetings.

Approval from FED for USDA/Rural Housing loans

The federal government has finally given the go ahead for approved lenders to begin funding USDA/Rural Housing loans. Here are a few benefits of USDA/Rural Housing Loans:

* Zero Down payment required which drastically reduces the amount needed to close and allows more buyers to be eligible for the program.
* Closing costs and prepaids can be financed if supported by appraised value so buyers with limited assets can still qualify.
* Assumable with prior approval. Re-sales of the property may be more affordable and homeowners with assumable mortgages have more marketable homes.
* Rural properties are eligible. It makes home financing easier and more available in outlying communities.

Real Estate by Pam: Deadlines for contracts are very important

Real Estate by Pam: Deadlines for contracts are very important: "Both buyer and seller should be aware of all of the deadlines in their purchase agreement. Each contract is different, but there are usually..."

Deadlines for contracts are very important

Both buyer and seller should be aware of all of the deadlines in their purchase agreement. Each contract is different, but there are usually time limits covering the home inspection, the financing application, the loan commitment, and the closing.

Don't lose your right to ask a seller to pay for needed repairs. There may be a limit on the time the seller has to respond to the buyer's request to complete repairs that are not required by the contract. Failure to apply for your mortgage on time may place your deposit at risk if the loan is denied. In many cases, the agreement can be declared null and void by the seller if financing is not approved within the time frame set forth in the contract. A delayed closing can cost the sellers money, and they may ask the buyer to reimburse these expenses.

10 Reasons to buy

Why is now a great time to buy? Here are 10 reasons:

1. You can get a good deal. Prices are down 30 percent on average. They're at a level that makes sense for people's income.
2. Mortgages are cheap. At 4.3 percent on average for a 30-year fixed-rate mortgage, your costs to own are down by a fifth from two years ago.
3. You can save on taxes. When you add up the deductions for mortgage interest and others, the cost of owning can drop below renting for a comparable place.
4. It'll be yours. The one benefit to owning that never changes is that you can paint your walls orange if you want (generally speaking; there might be some community restrictions). How many landlords will let you do that?
5. You can get a better home. In some markets, it's simply the case that the nicest places are for-sale homes and condos.
6. It offers some inflation protection. Historically, appreciation over time outpaces inflation.
7. It's risk capital. If the economy picks up, you stand to benefit from that, even if you're goal is just to have a nice place to live.
8. It's forced savings. A part of your payment each month goes to equity.
9. There is a lot to choose from. There are some 4 million homes available today, about a year's supply. Now's the time to find something you like and get it.
10. Sooner or later the market will clear. The U.S. is expected to grow by another 100 million people in 40 years. They have to live somewhere. Demand will eventually outpace supply.

Positive News on Mortgage Loans

Delinquencies Are High but Recent Loan Origination Performing Well

•Due to Past Lending Mistakes the Bad Loans are still working through the system
•Banker’s Afterthought is nearly always that “Bad Loans are made in Bubble Times.”
•However, the Mortgage Delinquency Rate may have peaked. According to the Mortgage Bankers Association, mortgage delinquencies fell to 9.85 percent in second quarter 2010 from 10.1 percent in the first quarter.
•Various reports suggest good loan performance on recently originated mortgages.
•One-third of homeowners own their homes free-and-clear. They are not included in mortgage delinquency statistics.
•Loan approval is more difficult, which explains better recent loan performance. There is a better approval chance if the borrower stays well within
their budget.