Home Construction & Renovation in October

These words (except for quotes) are my views & opinions and do not represent those of my employer.


Newly constructed residential home
From specs, plans and a vacant lot to this perfect abode.

Home Construction and You. A Couple of Thoughts (2 min read)

For a home buyer having a new home built or buying an existing older home is a big decision. More first time home buyers are even considering new construction is a great opportunity to personally design their dream home and save big money down the road on the repairs and maintenance costs of owning an older home. Here are a couple things to think about if you are considering new home construction:

Customization

New construction allows you to design everything from the roof to the basement. You can choose your floor coverings, windows, doors, cabinets, appliances, bath fixtures, built security and entertainment systems and a lot more. Some predesigned home floor plans even allow for customization of interior space like the location of walls and number of bedrooms and bathrooms. Brand new homes come with modern energy efficient heating and cooling and Smart Home technologies. All can be designed to your specification when you build a new home. All customization items should be factored into the total construction cost budget. This is very important when selecting custom items to avoid any unexpected financial issues during construction.

For economic and social reasons it seems fairly certain, there will be more multi-generational households in the years to come. New construction can be designed specifically for multi-generation occupancy, or with that option to convert later. They may even sell for more someday when it comes time to move (something else to think about!)


Financing

Unless you plan to use personal funds for everything, financing will be a critical part of the home construction process. Lenders require more documentation than they did a few years ago. So have your paperwork in order and ready to go. Your lender will tell you what’s needed. Speak to a mortgage loan officer with construction lending experience. An upfront review of the documentation and a prequalification interview will help you determine an affordable budget. This, in turn, will help you to determine what type of home you can build.

Building a new home provides many personal rewards and personal satisfaction but it’s also complex and can also be costly. A “one-time-close” construction to permanent mortgage can help keep monthly expenses low with interest-only payments during the construction phase.

On a purchase, you can finance up to 80 percent of the land and construction costs. If you own the land (or house if it’s a knock-down) you can finance 100% of the construction costs but you will need to pay off any outstanding loans on the land. This can be included in the new construction to permanent mortgage. When the 12 to 18 month construction phase is complete the construction loan converts to a permanent mortgage with principal and interest payments.

One final thought. Don’t be in a hurry. The planning out, design and construction of a new home can take a lot longer than you might think. Expect delays. In fact, plan ahead for them if you can.

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“If you drink you will die, If you don’t drink you will die anyway” – Mongolian proverb.


Arthur Aranda • NMLS #1042093
Construction & Renovation Loans
New Jersey, New York, Connecticut
201-741-1537 talk/text


Networking…

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About Short Sale Coding and the Correction

Current Mortgage Rates & Market Data

Think the Government Might Owe You Money?
Scroll down to the green “HUD/FHA Refunds Info” section of this page to learn more!

Among the most important requirements a prospective home buyer has to meet in order to qualify for a mortgage loan is a satisfactory credit profile; and when a credit report reveals a less than satisfactory profile, it usually means that the prospective home buyer must take steps to find out why. The latest guest post, brought to you by our friends at North Shore advisory, discusses one aspect of how an individual’s credit can be affected negatively and the proposed solution to correct it.

SHORT SALE CODING CORRECTION ON CREDIT WILL TAKE AFFECT NOVEMBER 2013

For some time now, many short sellers were treated the same as homeowners that foreclosed when applying for a mortgage. Due to a credit coding issue that lumped short sellers into the same category as a foreclosure, the waiting period for loan approval was extended substantially. This forced millions to put their dream of participating in homeownership again off to the distant future. With interest rates climbing, and the real estate market improving, the increased future cost for purchasing would seem more of an obstacle down the road.

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But new policy changes could bring more options starting in November. After Sen. Bill Nelson focused on bringing this coding error to the FTC and the Consumer Financial Protection Board, things started to change.

This is the nature of the evolution of this business, says Fannie Mae spokeswoman Keosha Burns. The agency will input the new software into its computer system on Nov. 16. After that, if a short sale is marked as a foreclosure, the new code will allow the loan servicers to bypass it, correct it and move forward with the loan. Short sellers should speak with their bankers about the new options for homeownership, what the qualifications will be, and whether the state of their credit needs improvement.

Great credit brings great opportunity!!” Copyright 2013 • NorthShoreAdvisory.com

North Shore Advisory, Inc. offers credit repair, restoration, monitoring, and education services. We’ve been providing credit education and credit improvement for almost 25 years. For bankers and realtors we can review your clients credit reports and scores to see if we can improve them.

We can help you with your business credit needs as well as any personal credit scores.
Contact Us:
914-524-8300
Email:
info@NorthShoreAdvisory.com

HUD/FHA Refunds Info

You know, not everyone knows this, but if you owned a home and had a FHA mortgage, you might be entitled to money back from the government paid directly to you. It’s not free money (we both know that is a rarity), despite all the claims made by others that you can get free money from the government. No, this is money you would have paid into the FHA mortgage insurance fund via your MIP (Mortgage Insurance Premium) payments if your home was financed with a FHA mortgage.

There is no charge imposed by us for this service, and HUD/FHA certainly does not charge a fee for sending you your own money. We provide the service as an added benefit for your visit to this website, and of course we hope you come back often; but more importantly, we hope your name pops up on the HUD/FHA list of folks who are eligible for a refund. So Click here to check! …Good Luck!

Buying Your Dream Home – A Priority In Any Market


Houses Bought As-Is for ALL CASH! Fast Closings!

Even though it’s not easy for everyone to buy a home, it is in fact more affordable than ever to get a home these days with interest rates on most mortgage types at the lowest they have ever been since the mid-thirties when both the FHA (Federal Housing Administration) and FNMA (Federal National Mortgage Association) were established.

It can be said that banks are not as liberal as they were a few years back with providing home loans and mortgages, but if rates remain at this level for any reasonable length of time, you can expect lending to improve.

So even if you don’t have a lot of capital or a lot of money to put down, you can still get the home of your dreams at a very affordable price. There are many folks who think that buying a home is a tough process, needing a large down payment, although this isn’t always the case.

Buying a home largely depends on your budget. If you put a down a substantial amount of money on your home purchase, it will go towards your overall purchase. The more money you put down on a home when you purchase, the lower your monthly payments will be.

If you don’t own a home you most likely live in a rental house or an apartment. This can be a worthwhile solution, although you are still paying money towards your housing needs that you could instead be putting towards a home of your own. Owning a home is a dream for many Americans, especially when it comes to that dream home that most people hope to own one day.

Apartments and rental houses may be great to rent, but if your monthly rent is going to cost you almost as much as a mortgage payment – which seems to be the case these daye – then it makes little sense to rent if you can afford to buy your own.

Instead, you can easily convert your rental payments into monthly installments towards your own home. All across the United States, you can find lenders that offer mortgages with flexible terms and low out-of-pocket costs, such as mortgages which are insured by the FHA.

This mortgage type may be easier for purchasing your own home in today’s economy for two reasons. First, the interest rates are low as stated earlier. Second, they are insured by the federal government and therefore reduces risk for lenders. FHA-insured mortgage loans can help you to get the home of your dreams and enjoy low monthly payments.

Keep in mind that while choosing a mortgage program that’s best for you, all aspects of that program must be taken into consideration. How much of a down payment is required? Will your interest rate be fixed for the full term or ARM (Adjustable Rate Mortgage)? What if my credit report has a few blemishes? Will this prevent me from obtaining a mortgage? How much of my monthly income am I permitted to use for housing costs and other credit obligations?

Although there are many questions to which you may not have immediate answers, some lenders can/will help provide answers by pre-qualifying you for a mortgage.

You can also use an online service to find a lot of answers to your questions. In fact, many aspiring home buyers do their own research in the privacy of their own living rooms with the use of a computer and internet connection. So by the time they are ready to get that pre-approval, most of the questions have been answered.


Another option is to consult a real estate agent, who will be more than willing to provide answers to some of your questions. Good real estate agents will be more than willing to help you get a great deal on the home also, and at prices that are right for you.

Anytime you buy a home, you should always plan ahead, get yourself a real estate agent, and then pursue your dream home.

If you plan your budget and take things one step at a time, you’ll be closer than you think to the home of your dreams. If you choose to keep renting and pay money toward something you don’t own – the home of your dreams will continue to slip away. Take action when conditions are favorable (low interest rates, low home prices), and stop renting – find the home of your dreams and put your money towards owning it instead.

Click here to review mortgage choices!