Bill Wasinski\’s Blog

Why Buy A Home?

People still need a place to live and renting is not for everyone. Renting has flexibility (and even that flexibility is tempered by the lease, and payments can be flexible too, going up in many cases), but the advantages of owning are too great to ignore.

Some of the most frequent things I hear is that œThere is no money available for mortgages œYou need perfect credit or œI need too much for the down payment Let me clear up these common misconceptions.

• There is plenty of money available for financing. In fact there is so much supply and so little demand that interest rates are at historic lows.
• You don™t need perfect credit. FHA focuses on the ability of a person to repay the loan more than a credit score. Of course a history of not repaying loans will hold you back, but perfect credit is not an absolute requirement. Now, you do need a job and the ability to repay the loan, but that™s a good thing.
• You don™t need a big down payment.   FHA financing requires only 3.5% down plus closing costs, and sellers can contribute 3% towards those closing costs (Which covers most if not all of them)

Now for the advantages of buying

I always tell people to look at their home as a place to live. Buy it because it™s where you want to be, where you want to raise your family, or retire etc., but there are other good, financial, reasons to buy a home.

Tax breaks:   Most people are aware of the interest deductions on mortgages. Many people will adjust their payroll deduction and see a bigger paycheck right away. But an even potentially bigger tax break is from the capital gains exemption. When the price of your home goes up, and it will, you do not have to pay capital gains tax on the first $250,000 of gain, $500,000 for couples. This can be a Huge savings!

Principle reduction: After 5 years of renting you™ll have 5 years of cancelled checks. After 5 years of house payments, you™ll have more equity in your home. In 15, 20 or 30 years, even if the value of the home never goes up, you™ll own the home!

Appreciation: As I said, in the past 25 years I™ve seen prices go up and down. But the general trend long-term has always been up. Real appreciation comes from buying in a good location, at a good price. And it takes time. A good agent is really valuable here. Right now prices are at a low point and the phrase œbuy low sell high seems to fit.

It™s YOUR home: This covers a lot and it means different things to different people. Maybe it™s pride of ownership, maybe a base for the family, maybe a good investment. What do you want? What does a home mean to you?

So, you have to live somewhere. If you™re renting now and want to have more than cancelled checks 5 years from now, call me. I offer a free consultation. If you own a home and you™re worried that you won™t get what your home is worth, call me. I can do a Market Analysis and give you facts, not fears. Also, if you™re waiting for your home to go up in value, remember that the home you want will be going up in price too, (along with interest rates.) And, there are some strategies we can talk about regarding this.

A final note and request. If you do know of anyone who is thinking of buying or selling, or should be thinking of it, let me know. I™d be happy to give them all the information they need to make a good, informed decision.

Also, I know I may have your email address, but could you send it to me again, just in case it™s changed? Just a quick hello to bill@billwasinski.com. It will also give me a chance to send out updates on timely issues.

As always, feel free to call, email, or text me if you have any questions or if you know of some one I can help. Visit my web site www.billwasinski.com

 

Help for Homeowners

 

Despite all the doom and gloom news stories, most homeowners are happy with their homes and their loans. I certainly hope you are one of them. But, it™s no secret that in recent years some homeowners have had some rough times. Even people who have not suffered financial setbacks may have a hard time refinancing their higher interest loans due to the drop in value in their neighborhoods. Recent government programs are helping homeowners reduce their interest rates, modify their loans and save their homes. Even if a homeowner can™t save their home there are programs that help reduce the damage to their credit. The Making Home Affordable Program is designed to help homeowners in a variety of ways.

 

Home Affordable Refinance Program HARP allows people current on their loans to refinance at a lower interest rate. Even if your loan exceeds the value of your home you may be eligible to refinance at current rates. This will help people who have loans above the current interest rates. People in interest only, adjustable rates or balloon payments will also benefit by the long-term security of the low rates.

 

 

Home Affordable Modification

This is a program for people struggling to make their payments, or who are already behind in their payments. The government will provide incentive to lenders to help modify the current loan to make it more affordable for the homeowner. The goal is to get the mortgage payment, PITI, to 31% of the gross monthly income of the homeowners. The interest rates may be reduced as low as 2%. If that doesn™t get the payment to the 31% mark the lender may increase the term of the loan to 40 years or even defer or forgive part of the balance.

 

Foreclosure Alternative Program (FAP)

Not everyone will qualify or benefit from the Home Affordable Modification program. Some people need to move for jobs etc. and can™t get their homes sold for what they owe. The FAP give lenders incentives to work with the homeowner in the sale of the home, and take less than what is owed on the property. Homeowner benefit by not having a œforeclosure on their credit history. There are also some financial incentives for some homeowner. If a short sale doesn™t work then the parties are encouraged to do a Deed in Lieu of Foreclosure.

 

For more information on Making Home Affordable got to http://www.makinghomeaffordable.gov/

Or information on avoiding foreclosure go to

http://www.hud.gov/foreclosure/index.cfm

 

Or go to www.billwasinski.com. Both link are on my web site

 

While I can™t negotiate a loan refinance or modification for you, (That™s a little outside my area of expertise) I can provide a Market Analysis to give you an idea of your home™s value. Of course if you need help selling your home, even as a short sale, I™d be delighted to help.

 

Speaking of selling, life still goes on and people™s needs change. Many people need a bigger, or smaller, home, or they need to move closer to a new job or school. I™ve found that a lot of people are hesitating to take advantage of today™s low interest rates and low prices because they think that the will never get their current home sold. You may be surprised! There are so many good reasons to buy right now that homes sales are getting stronger by the day. Buyers are out there!   Give me a call and we can discuss your specific wants and needs. There™s no cost, no obligation and no hassle.

 

 

 

In today™s market buyers are faced with the terms. Such as bank owned, HUD owned, foreclosure, short sale, REO property and more. All of these can be labeled distressed properties, but there are some big differences when it comes to buying them.

 

Bank owned properties are homes that have gone completely through the foreclosure process and title has been transferred to the œbank (although it may not technically be a bank) so, these properties can be labeled as bank owned, REO (real estate owned), or just foreclosed properties. HUD homes are properties that had an FHA (Federal Housing Administration) insured loan that was foreclosed on and the title has transferred to the Department of Housing and Urban Development. When buying a Foreclosed home a buyer will be dealing with the œbank or more likely a company that represents the banks in the sale of foreclosed homes. Since most of these companies operate nationwide they use their own forms, rules and addendums. It is a bureaucracy, so decisions may take some time and special needs and circumstances may not be addressed as well as if you were to buy from an individual.

The perception is that you can get great deals from these bank owned homes, but in reality most homes do sell for what they are worth. Some of the low prices are due to condition, not the need for the banks to sell these homes off quickly.

Banks do however follow the market closely, so they are much more likely to price the home competitively than many individual home sellers do.

 

Pre-foreclosures are homes where the owners have stopped making mortgage payments and the bank has started the foreclosure process. With these homes the buyer will be dealing directly with the homeowner. However they may also need to work with the bank, usually to delay the foreclosure sale, depending on how far along the foreclosure process is. There are also special rules in Colorado for investors buying homes in the foreclosure process.

 

A short sale is when the value of the home will not cover the full amount of the mortgage(s) owed. In almost all cases they are in the foreclosure process as well. This is the most complicated of these transactions. The buyer must deal with the homeowner and also the bank(s).   The bank needs to determine if the homeowner is truly unable to pay, if they have other assets to help pay off the mortgage and if it makes sense to take less than what is owed. All of this can take a lot of time, especially now since there are so many homes in this situation. On the plus side these are probably where the best deals are. But they are not easy. Homeowners are allowed to keep the homes active on the market and accept more than one offer. The banks encourage this to hopefully bid up the property. Ask yourself if you are interested in finding a home, that may be a deal, or a deal that™s a home.

 

Every real estate transaction is different, so it™s important to have an agent with experience that can answer your questions and help guide you through the process to your goals. Call me with any questions. I™ll put my 26 years of experience to work for you. 303-829-4778

Dear Friends,

 

When people ask me how the real estate market is I™m often tempted to say œthe same. Since I started selling real estate in 1983 the most basic factor in real estate has been; buyers want to buy, sellers want to sell, and my job is to help them do it. And it™s still the same today.

 

Sure, there have been many changes in the 25+ years I™ve been selling real estate. And it seems like things are changing all the time. I™ve seen

• Interest rates go from 17.5% (my first offer) to under 5%.
• Prices go up, and down.
• Big changes in financing.
• Foreclosures, HUD homes, corporate relos, fix and flips, scrapes and just anything with a door and a roof have all be the dominant forces in the market at one time or another.
• Technology, from fax machines, car phones and the Internet changing the way we do business.

 

But the bottom line is, buyers want to buy homes and sellers want to sell, and I™m here to make that happen.

 

There are too many things going on in the market to write about in one letter, so I™m going to focus on one point now and follow up in later letters. If you ever have a question on anything though, please call, I™d love to talk to you.

 

So, Buyers want to buy. People still need a place to live and renting is not for everyone. Renting has flexibility (and even that flexibility is tempered by the lease, and payments can be flexible too, going up in many cases), but the advantages of owning are too great to ignore.

 

Some of the most frequent things I hear is that œThere is no money available for mortgages œYou need perfect credit or œI need too much for the down payment Let me clear up these common misconceptions.

• There is plenty of money available for financing. In fact there is so much supply and so little demand that interest rates are at historic lows.
• You don™t need perfect credit. FHA focuses on the ability of a person to repay the loan more than a credit score. Of course a history of not repaying loans will hold you back, but perfect credit is not an absolute requirement. Now, you do need a job and the ability to repay the loan, but that™s a good thing.
• You don™t need a big down payment.   FHA financing requires only 3.5% down plus closing costs, and sellers can contribute 3% towards those closing costs (Which covers most if not all of them)

 

Now for the advantages of buying

I always tell people to look at their home as a place to live. Buy it because it™s where you want to be, where you want to raise your family, or retire etc., but there are other good, financial, reasons to buy a home.

 

Tax breaks: Right now there is up to an $8,000 tax credit for 1^st time buyers. An even potentially bigger tax break is from the capital gains exemption. When the price of your home goes up, and it will, you do not have to pay capital gains tax on the first $250,000 of gain $500,000 for couples. This can be a Huge savings! There is also the mortgage interest deduction on your taxes.

 

Principle reduction: After 5 years of renting you™ll have 5 years of cancelled checks. After 5 years of house payments, you™ll have more equity in your home. In 15, 20 or 30 years, even if the value of the home never goes up, you™ll own the home!

 

Appreciation: As I said, in the past 25 years I™ve seen prices go up and down. But the general trend long-term has always been up. Real appreciation comes from buying in a good location, at a good price. And it takes time. A good agent is really valuable here. Right now prices are at a low point and the phrase œbuy low sell high seems to fit.

 

It™s YOUR home: This covers a lot and it means different things to different people. Maybe it™s pride of ownership, maybe a base for the family, maybe a good investment. What do you want? What does a home mean to you?

 

So, you have to live somewhere. If you™re renting now and want to have more than cancelled checks 5 years from now, call me. I offer a free consultation. If you own a home and you™re worried that you won™t get what your home is worth, call me. I can do a Market Analysis and give you facts, not fears. Also, if you™re waiting for your home to go up in value, remember that the home you want will be going up in price too, (along with interest rates.) And, there are some strategies we can talk about regarding this.

 

A final note and request. If you do know of anyone who is thinking of buying or selling, or should be thinking of it, let me know. I™d be happy to give them all the information they need to make a good, informed decision.

Also, I know I may have your email address, but could you send it to me again, just in case it™s changed? Just a quick hello to bill@billwasinski.com. It will also give me a chance to send out updates on timely issues.

 

As always, feel free to call, email, or text me if you have any questions or if you know of some one I can help. (I™m also on Facebook and twitter, but I™m just starting to learn how to use these in my business)

 

 

All the Best,

 

Bill Wasinski

 

Bill Wasinski

The Home Partnership at

Keller Williams Realty DTC

303-829-4778

bill@billwasinski.com

www.billwasinski.com

Welcome to Bill Wasinski’s Blog! This blog will provide you with valuable information, tips, and general insight into the real estate market in Centennial.