Afonso Real Estate



Posted by Afonso Real Estate on 12/10/2014

Have you noticed the number of new construction homes going up lately? A recent report by The U.S. Census Bureau and US Department of Housing and Urban Development (HUD) showed single-family home building permits up almost 5%. The process of building a new home can be stressful; there are lots of decisions to be made and obstacles to overcome. Here are some useful tips to keep stress at bay when building a new home. 1. Get pre-approved for a loan. Make sure that you do all the steps necessary to put the proper loan in place. You will need to fill out a mortgage application and provide the necessary documentation to check your financial background and credit rating. This process will let you know exactly how much you can afford to spend. You will also need to make sure your lender knows you are planning on purchasing new construction. 2. Do your homework. Check the reputation of your builder. You can search for information online, contact the better business bureau or ask your friends for recommendations. If you are building in a subdivision you may want to ask some neighbors who have already moved in about their experience. 3. Watch you budget. The advertised price of a new home is rarely the final price. The price can escalate quickly when you start upgrading the standard flooring, cabinetry or lighting. Plan on how much you can afford to spend before you start upgrading and budget accordingly. 4. Don't forget about resale. You may love the upgraded plumbing and light fixtures but know that those things rarely bring in a good return. You will not be the last owner of your home. Be mindful not to add so many upgrades that you overprice your home for the neighborhood. 5. Keep the lines of communication open. Communicate with your builder, ask questions and make sure you know where your money is going. You may want to keep a running list of quotes for extras and upgrades. Be comfortable asking even the simplest questions. 6. Be prepared for delays. Building a home can be a long process. Depending on the size of your home it can take anywhere from three months to a year or more. Get an estimate of when the building of your new home will be completed and plan accordingly.





Posted by Afonso Real Estate on 7/9/2014

Many buyers today think buying a foreclosure means big savings and this can be true but buyers also need to be aware of potential pitfalls. A foreclosure takes place when a homeowner or property owner cannot pay the mortgage fees on the property and is forced to give up the property to the bank. First, potential buyers should know there are different stages of foreclosure.
  • Pre-Foreclosure
Pre-foreclosure stage is the earliest stage of foreclosure. Reaching pre-foreclosure status begins when the lender files a default notice on the property, which informs the property owner that the lender will proceed with pursuing legal action if the debt is not taken care of. At this point, the property owner has the opportunity to pay off the outstanding debt or sell the property before it is foreclosed. In this stage, many homeowners may opt for what is called a short sale. Many of these homes will sell for near their appraised values. Banks may be willing to negotiate on these properties but the process can be lengthy. Properties that sell at a 20 to 40 percent discount usually need repair or are in unstable communities.
  • Foreclosure Stage
If a property doesn't sell in pre-foreclosure, and the home owner actually defaults on his mortgage, the home goes to public auction. During this stage you can find the best bargains but it can be filled with unexpected changes and last minute details. Preparation, patience and knowledge are key here and remember if a property does go to auction it will go to the highest bidder which is often the bank.
  • Many auctions are canceled at the last moment as the property has been sold or payments reworked.
  • Court-appointed trustees only accept cash or cashiers' checks.
  • There's little time to arrange inspections, so bidders may have no clear idea of what they're buying.
  • Properties are sold "as is," without warranties. Sellers needn't disclose problems. Buyers may find themselves with unexpected and expensive repairs.
  • Post-Foreclosure
  • In the post-foreclosure stage, the lender has already taken control of the property. The home is then in the possession of the lender's REO (Real Estate Owned) department, or in the hands of a new owner or investor who purchased the property at auction. Lenders are typically extremely willing sellers, because an REO on the books is an obvious sign of having made a poor lending decision. Both the overhead and losses involved with an REO -- reflected in both the added reserves a lender must maintain as well as any potential property management fees incurred -- means the bank is likely a willing negotiator.
    • Bank will not agree to do any repairs; as-is sale.
    • Bank will usually require additional paperwork.
    • Bank cannot provide disclosures as to property history/condition issues.
    Bank foreclosure properties can definitely help you make a good buy in real estate properties and still have lots of savings. Doing your homework on the neighborhood, comparable sales and property condition are essential in making a good buying decision.





    Posted by Afonso Real Estate on 12/25/2013

    Unfortunately, many homeowners have gone through a foreclosure in recent years but that doesn't mean that future homeownership is out of the question. Hard work and discipline and these tips should have you on the road to homeownership again soon. 1. Keep a steady job Potential lenders will need to see stable employment before they’ll approve a mortgage loan after a foreclosure. 2. Build your savings Rebuild your savings account. You will want to establish a minimum of six months of living expenses in a liquid account. Mortgage companies will want to see you have a cushion to pay your bills. 3. Work on your credit score After foreclosure, your credit score probably dropped by about 150 points. Rebuilding your score will take time, hard work and perseverance. Pay all of your bills on time and make sure to keep your credit card balances below maximum levels. It is best to have the balance less than half of the available balance. If you stay disciplined and positive, the American dream—obtaining a mortgage and owning a home of your own—can, indeed, be yours again. Even after foreclosure.    







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