Kay Osman's Discussions

Way to go, I love to see young people like you thinking of owning instead of renting. I will address first your mortgage choices. Be prepared & understand the process,and do your home work in advance to avoid any costly mortgage surprises or disappointments. Do not waste your time looking at homes prior to finding out how much loan you will be able to qualify for and most important, what type of loan. There are specials for first time buyers, or may be FHA with lower down payment etc. You want to be careful in finding the right mortgage to make your dream a reality. When shopping for a loan, if it sounds too good, do not rush into applying for that loan, check other lenders, learn the different types of mortgages, current rates, compare and verify (be sure there is no prepayment penalty provision in the mortgage document). When the lender looks at your credit report, the lender checks out if you are maxing out all your cards, also verifies your payment habits, and any late payments or problems with credit. Your interest rate is determined by factors such as credit score, cash down payment, and other compensating factors that affects the lenders risk. Since the interest rate offered to you is affected dramatically by your credit; check out your credit report before contacting a lender, if you find wrong information, or challenges in your credit report, be sure to contact the credit bureau and make the necessary corrections. Your loan officer may be able to guide you through this process.Once you provide your loan officer with your information, he/she will be able to give you an idea about how much you can borrow, depending on the current interest rates and your credit score. Always compare apples with apples, take the good faith estimate, type of loan you got from a lender, and check out other lenders , compare, ask questions, and try from all of this, to know the type of loan that is best for you, and what is the interest rate & closing cost.

Mark, Kathleen and Erika covered some of the spots. If I may add, I would like to point out that, when you are considering buying a home, you are fearful of the risk, the unknown, and the first thing you may do is to try to find an agent that would provide you with assurances or guaranty. Remember, no one can predict the future. If You think of hiring a real estate agent, because you want someone to guide you, protect you, and provide more security to you more than any other Buyer or Seller, because it is you, may be you are asking too much. Do not allow the fear to take over, and leads to unrealistic expectations or demands. Your agent will provide you with historical data and support statistics to show you the various trends in the past and the current active and sold data; and you will have to reach your own conclusions, and assumptions. If real estate agents can see through a crystal ball, all of us will be safe, secure and super wealthy.Trying to employ a professional real estate agent is one of the toughest decisions. To start with, you need to understand what the agent will do for you. But, depending on whether you are a buyer or a seller, the agent?s responsibilities to you will vary. You need to understand the various types of Agency, who represents who and what is the representation impact on you and your purchase.

Congratulations, wishing you all the happiness. I think you have some homework to do first. Who gave you the price range, do you have a down payment & closing cost? You may like to visit my blog: http://4-u-web.com/blog/ and read about the home buying process and requirements. Are you buying new or resale home? New homes have special appeal and advantages. It is a virtual assurance that maintenance cost will be minimum and predictable and builder?s warranty gives assurance, peace of mind and guarantees freedom from structural flaws or deficiencies. You most likely would have the opportunity to select your color scheme and make the appropriate upgrades if you contract on the home during construction and prior to completion.New home construction is changing and builders try to adapt designs to new lifestyles, make the most of living space and incorporate new technology and advanced enhanced building material.Buying a new home is most attractive because everything is new, floors, appliances, insulation, energy-saving cooling and heating systems, lighting, plumbing fixtures, sound systems, internet connections, meeting the latest building codes to mention a few.On the other hand, a resale home is mostly in an established neighborhood. The landscaping is in, the integrity of the construction and foundation can be evaluated. The older homes may have larger rooms, and the yard may have a more generous size. If you like the resale home more, you may have your inspector check on the foundation. How sound the walls, floors and ceilings are. He will most likely check the type of plumbing that was installed and when. The electrical system is extremely important, find out if it is updated and meets the current codes or not. Your inspector will also check on the maintenance/repair history of the home, the insulation, the heating and cooling systems, the roof and gutters and it may be a good idea to find out the energy cost there. Kay F Osman

In Hawaii, when we write the legal description of a property, we describe the lot size, location, zoning, all improvements (the structure), how many bedrooms, and baths and if there are attached or detached garage or other structures, or even a pool or spa. I also add in the language that legal description to follow in escrow. The actual legal description, metes and bounds & recorded data follows when the title search is done and provided by the title company.

You may like to ask yourself why you resort to owner financing, specially with the prevailing interest rates at 40 year low.In the past, the lenders did not have due on sale close, so, Sellers were able to give Seller financing at little higher interest rate, and thus cover their payment cost and have some extra. Some of the aspects where a Seller can provide finance:1. If the property is free and clear, Seller wants to have a return on his money higher than what he get on a CD, and specially if the buyer has a decent down payment.2. If the property is free and clear, and the Seller is having hard time selling it,Seller may be able to offer attractive package to fit may be his tenant, or other buyers who are waiting on the side line for a good deal.3. Seller can give a second mortgage, and the buyer will borrow a first mortgage from the lender, this way, avoids having to come up with cash downpayment, and paying mortgage insurance.There are many points to be aware of, whether you are a buyer or a Seller: the term of the loan, the interest rate, whether it is fixed or variable, due on sale and under what circumstances, late payments and default to mention a few.Seller and buyer must be careful, have title and liens checked out, and hire a real estate attorney to draft the proper mortgage documentation.Kay F Osman R, ABR, CRB, CRS, GRI, SRES (808) 523-6421

To sell or not to sell is a loaded question. Robin covered the tax aspects, and may be the need for cash for down payment on your home at Utah. You may like to get the assistance of a seasoned Realtor in your area to provide you with:* Statistics about the different cycles of real estate in your area. Has the appreciation been substantial over the years or not.* Are you going to get decent price in this Buyer's market or not?After discussing this feed back and data, you can decide if you can have better return and keep your home, or sell it and look for other investment vehicles.* You did not mention your long term plans. Are you going to be returning back and needing a home? do you have children that may be interested in buying that home in the future? * In the event of renting your home, what is the capitalization rate, or return on your money, since you have all your equity there without any tax shelter?* Do you have cash for down payment on your new purchase or not?All this, in addition to what Robin mentioned may help you make a decision.Kay Osman R, ABR, CRB, CRS, GRI, SRES (808) 523-6421dosman888@aol.com

Stop and evaluate your particular situation: You purchased a home prior to selling your home. Your price range has less qualified buyers than lower priced homes, the interest rates has been going higher, making qualifying more challenging, and it is now buyer's market. Keep in mind that many buyers are told by family and friends not to buy now, because prices will dip more. Whether this is right or wrong, it is the percenption in the market place.Pricing your home right is the first step. I advise my clients if they want a fast sale to price it little below the last comparable, buyers will pay attention.If some prospective buyers will think you are desperate, nothing you can do about this, there will be others that will grab the opportunity. You may also like to consider flashy incentives, a buy down, or paying buyer's closing cost, providing a one year home warranty, crediting the buyer for one year of property tax cost, check the market, be unique and creative. Option in my experience may not be the best venue. The person wanting the option may not be as educated, many think the monthly rent is credited toward the purchase price. If you do not try, you will never find out, do not wait too long. Good luckKay F Osman R, ABR, CRB, CRS, GRI, SRES (808) 523-6421dosman888@aol.com

You probably have more options than you think. Most homebuyers have probably saved some money, but, not enough to buy their dream home. You may have overlooked some sources of funds, here are some strategies you might want to pursue:Gifts: Your parents, relatives or friends can present you with an outright gift of a down payment. If this is a possibility, lenders will ask for a gift letter from your benefactors stating that the money is yours and that no repayment is expected. Check with your accountant about the maximum of the non taxable maximum yearly gift you can get from your parents. Employment benefits: You may also like to check if you can withdraw or borrow from your Pension Plan, IRA or 401K. There might be a penalty for withdrawing funds from those sources, so a better strategy may be to borrow against your account. Check with your accountant please.Negotiate: Another important source is the Seller of the property you are planning to purchase. Your agent can request a 3% to 6% credit (depending on the amount of your down payment) from the Seller at closing to go toward your closing cost. This is allowed and regulated by lenders and a great way to get funds for closing cost. Remember, reducing your need for cash has the same effect as increasing your cash. Try to strike deals when possible, be creative. Lender?s fees may be negotiable, for example, discounts may be available from escrow or title. If you do not try, you will never find out.Advances: You may be able to raise cash by arranging to receive your holiday bonus or allowance ahead of time. Similarly, if your job calls for a regular merit or pay raise, ask your employer for a letter detailing the amounts and dates of scheduled increases. Some lenders go so far as to consider such non cash forms of compensation or commission as the use of a company car as part of your total income.Be creative and good luck