Getting Mortgage Quotes Online - 3 Tips for Internet Security

by Brandon Cornett

Thanks to the Internet, the entire real estate process has gotten a lot easier. You can find homes and research prices online, and you can even request quotes from mortgage lenders with less time and effort than in the past.

And while these are certainly good things, you must also exercise a bit of caution when getting home loan quotes via the Web. You need to protect your personal information at all times, and you need to learn about the various companies that offer this kind of web-based service. This calls for some light "detective" work on your part, and that's what I'm going to teach you in this article.

Before we get to the actual steps involved in this process, let me offer you some good news. With a little research and common sense, you can benefit from the convenience and efficiency of online mortgage quotes while protecting your identity at the same time. There are plenty of reputable companies that offer these services. Of course, there are some scams out there as well, but these will be fairly easy to spot once you read this article.

Without further ado, here are five ways to protect your identity while getting loan offers via the Web:

1. Go With the Names You Know

Generally speaking, it's best to use a company you've heard of before when requesting mortgage quotes through the Internet. Here's why. The fact that you've heard of them suggests that the company spends a lot of time, energy and money on their brand name. Such a company will go a long way to protect its reputation and brand, and they do this by providing a good service and looking after their customers. Personally, I would never offer sensitive information to an unknown company -- too much of a wild card for my comfort. I recommend you do the same.

2. Look for the 'S' in the Web Address

A website that is truly secure have the letter 's' in the prefix of the website address / URL. This means the site is encrypted to keep hackers and identity thieves out, as much as possible anyway. When you visit a lender's website -- and before you transmit sensitive information through the site -- check the web address that appears in your Internet browser. If it's truly a secure website, there should be an "https://" prefix before the "www" part. Note the all-important letter 's' in that prefix. If the address starts with "http://www" (lacking the letter 's'), then it's not a secure site.

3. Look for Third-Party Verification

Reputable mortgage companies will go the extra mile to have ensure their websites are secure for visitors. This will often include the use of third-party verification of site security. In other words, the company will hire another company to test and verify the secure areas of their website. You've probably even seen the certification seals on financial websites in the past. A common one is the "TRUSTe" seal of approval. In most cases, you can actually click on the image / seal to check the security status of the site you're on.

Conclusion and Going Forward

Using the Internet is a great way to get quotes for a home loans while saving time and energy in the process. You just have to exercise a little caution along the way. Follow the safety guidelines I've provided above when requesting mortgage offers via the Web, and you should be fine. And remember this mantra of Internet safety and security ... when in doubt, back on out!

* Copyright 2008, Brandon Cornett. You may republish this article if you retain the citation notes and hyperlink below.

Citation Note: This article was created by Brandon Cornett, publisher of the Home Buying Institute network of real estate websites. You can learn more or contact the author by visiting his mortgage refinance blog at http://www.mortgage-refinance-advice.com/blog/

Chris Farkas is a Realtor for EXIT Realty Associates

www.RealBellingham.com
www.WhatcomShortSale.com
www.ChristineFarkas.com
www.FreeWhatcomHomeSearch.com

Property Selling Tips

Selling a home today is very different than it was just a few years ago. In many areas it was as easy as putting a sign in the yard and then sitting back and waiting for multiple offers to choose from. But as the market has cooled down substantially you must make your property more exciting.

When a person buys a home it is a big emotional decision. People spend years of their life planning and visualizing their dream home, so when they actually come to view a prospective home they want it to be perfect. In order to make your house a home and stand out from the crowd, there a few things that you can do.

First of all, look at the outside. Remember the term “curb appeal.” When prospective buyers drive up to your home, what does it say? It needs to say “wow!” Make your yard stand out by pruning the trees, pulling out the weeds and keeping it mowed and trimmed. If you live in a snowy winter wonderland like I do, keep your driveway plowed and your walkways and stairs shoveled and swept. Buyers can and will imagine both the best and worst conditions. It is your job to make the best and worst seem acceptable.

You can also add colorful fresh plants to give it a fresh look. Make sure the exterior is in tiptop shape. Paint, as needed – especially the front door. If winter prohibits exterior painting, plan ahead if able. Painters have some options available for winter painting but they are not genies, and they are limited to available technologies for cold weather painting.

Inside the house make sure to fix any broken window panes, doors and leaky faucets. You should also check and make sure that all the electrical appliances such as the doorbell, fans, lights etc are functioning properly. You must keep in mind that buyers will look at every nook and cranny of the house, so you should take care of all the finer details. Nothing will turn off a potential buyer more than the feeling that the house has not been maintained.

Finally, look at the inside of your home through the buyer’s eyes. What will they see? Should you repaint the walls? Should you replace the carpeting? Will the buyer feel at home?

In order to be more accustomed to the buyer’s need all you have to do is to think like a buyer. Try to make a list of all the things you would want in your home if you were to buy it. This will give you a good idea of what you need to do in order to make your home the buyers perfect home.

Chris Farkas is a Realtor for EXIT Realty Associates

www.RealBellingham.com
www.WhatcomShortSale.com
www.ChristineFarkas.com
www.FreeWhatcomHomeSearch.com

Different Types of Housing

The time has never been better for apartment dwellers to stop making their landlords rich. No offense to landlords as I am one myself.

With that said, a discussion of home purchase options is in order. There are many types of homes out there and a basic discussion of home types is in order.

Are you familiar with the different types of housing that you can purchase? If you are in the market for a new home, it is important that you know the difference between a single-family home, a townhouse and a condominium. We have explained them below so you can familiarize yourself with the advantages and disadvantages of each.

Single Family Homes

The single-family home is the most common type of housing in the United States. This type of dwelling is designed for a single family and has its own land. The house and the land are purchased and sold together. Unlike townhouses and condominiums, single-family types of housing are not attached to other homes. Aside from regulations from your neighborhood, subdivision or municipality, you are free to do whatever you would like with your home.

With a single family home, you are responsible for the cost of maintaining and repairing the home, whether you do it yourself or pay someone else to do it. In addition, landscaping and lawn maintenance are also your responsibility. If you want to have a pool or playground in your backyard, you will have to provide such amenities.

The good thing about single-family homes is that you have the freedom to make whatever changes you like and the improvements to your home can greatly increase the resale value.

Townhouses

A townhouse is a cross between a single family home and a condominium. They share characteristics with both types of housing. In most cases, a townhouse is attached to at least one other house. When you own a townhouse you own the home as well as the property on which the home sits.

Since townhouses are a part of a larger community, you can usually find many of the amenities that you might find with an apartment. This includes swimming pools, fitness centers, tennis courts, etc.

While you are responsible for some of the maintenance and repairs, it will not be to the extent of that of a single-family dwelling.

Townhouses are often part of a Home Owner’s Association too, which you are required to be a member of. These associations typically charge a monthly fee to maintain the various amenities provided and common areas.

Condominiums

A condominium, condo, for short, is a type of housing that is best described as an apartment that you are able to own. When you purchase a condo, you own everything inside your walls and share ownership of common areas with your neighbors.

Often condo ownership requires you to pay a monthly fee that covers repairs and maintenance to the common area. The condo association handles exterior maintenance and repairs, but in many cases, you contribute to the cost through dues or assessments.

Condo prices are often more affordable than those of single-family homes and townhouses. There are often a number of amenities available for you to use. You have minimal responsibility for exterior maintenance and repairs.

Condo’s have become a popular form of ownership for young professionals as well as empty nesters.

The type of home you purchase depends on many factors. Let our team of professionals assist you in choosing your perfect home!

Chris Farkas is a Realtor with EXIT Realty Associates

www.YourWhatcomRealtor.com
www.RealBellingham.com
www.WhatcomShortSale.com

11 Great Reasons To… LIST YOUR HOME DURING THE HOLIDAYS!

1 People who look for a home during the holidays are more serious buyers.

2 Serious buyers have fewer houses to choose from during the Holidays and less competition mean more money for you.

3 Since the supply of listings will dramatically increase in January, there will be less demand for your particular home. Less demand means less money for you.

4 Houses show better when decorated for the Holidays.

5 Buyers are more emotional during the Holidays so they are more likely to pay your price.

6 Buyers have more time to look for a home during the Holidays than during regular weekdays.

7 Some people must buy before the end of the year for tax purposes.

8 January is traditionally the month for employees to begin new jobs. Since transferees cannot wait until spring to buy, you must be on the market during the Holidays to capture that market.

9 You can still be on the market, but you have the option to restrict showings during the six or seven days during the Holidays.

10 You can sell now for more money and we will provide for a delayed closing or extended occupancy until early next year.

11 By selling now, you may have an opportunity to be a non-contingent buyer during the spring when many more houses are on the market for less money! This will allow you to sell high and buy low.

Chris Farkas is a Realtor with EXIT Realty Associates

www.YourWhatcomRealtor.com
www.RealBellingham.com
www.WhatcomShortSale.com

When is the ARM Loan a Good Idea for Home Buyers?

by Brandon Cornett

This is one of the most frequently asked questions we receive at the Home Buying Institute. But despite the frequency, I'm always happy to answer. A failure to understand the inner workings of the adjustable-rate mortgage loan is what got many homeowners into foreclosure trouble over the last few years.

Let's start with a quick definition. The adjustable-rate mortgage (commonly known as the ARM loan) has an interest rate that will adjust or "reset" at a predetermined frequency -- every three years, every five years, etc. This is very different from the fixed-rate mortgage loan, which holds the same interest rate over the entire life of the loan.

The interest rate is one of the factors that determines the size of your monthly mortgage payment, so when the rate increases or decreases the size of your monthly payment changes up or down with it.

Many of the adjustable-rate mortgages given out these days are actually "hybrid" in nature. They start with a fixed interest rate for a certain period of time. After that initial period, the rate will reset or adjust -- and it will continue to adjust with regular frequency. This is where the uncertainty comes into the picture, because you never know exactly how the rate will adjust. It typically means an increase, but you don't know how much of an increase.

ARM Loans, Bad Credit and Payment Shock -- A Common Pattern

These types of loans were favored by the subprime lenders you've heard so much about lately. When a person has bad credit, they have trouble qualifying for a mortgage loan. And if they do get approved for a loan, they will usually end up paying a higher interest rate than somebody with good credit. This can make the mortgage payments unaffordable for the home buyer, unless ... the lender can find a way to reduce the interest rate for the first few years.

And that's where the ARM loan came in. Subprime lenders would often use some version of the adjustable-rate mortgage to minimize the interest rates for the first few years of the loan. This would make the loan payments seem more affordable to the borrower -- at least initially. When you hear the phrase "teaser rate" used to describe mortgage loans, it usually refers to this type of lending practice.

So, John and Jane (both of whom have bad credit) purchase a home through an ARM loan. The rate is relatively low for the first three years, so everything seems fine. While the mortgage payment is a significant chunk of change for John and Jane, they can afford it for now.

After three years, the interest rate resets to a higher rate. And in the case of a subprime mortgage loan given to borrowers with bad credit, the rate usually increases significantly. The next thing John and Jane know, they are suddenly unable to afford their new payment. So they have three options -- (1) refinance the loan, (2) sell the home, or (3) suck it up and try to manage the new / larger mortgage payment.

Many people in this situation over the last few years were unable to pursue option #1 (refinancing) because their property values dropped since the date of purchase. So their options were reduced to just two -- sell the house or try to handle the new payment. We know from history that a lot of people took the latter route, whether it was by choice or not. We also know that this type of scenario contributed to the record-breaking numbers of home foreclosures we've seen over the last two years.

How to Safely Use an ARM Loan

The scenario described above is an example of how not to use an adjustable-rate mortgage / ARM loan. If you plan to keep the home for many years, the fixed-rate mortgage is usually your best bet. As we have seen, you cannot count on being able to refinance the loan before the interest rate adjusts. Nor can you predict how much larger the payment is going to be after the adjustment period.

But there is a smart way to use the ARM loan. I have used one myself in the past, and it worked out perfectly for my wife and I. It worked out well [and here's the key to all of this] because we knew we would only be in the home for three years, at the most. This was my last tour in the military, so we bought the house knowing we would be moving again in a few years. The ARM loan was ideal for this scenario. We saved money while we owned the home (because of the introductory period of low interest), and then we sold the home and moved before the rate adjusted.

This is not the only scenario where an adjustable-rate mortgage can be used wisely. But it is the most common scenario. The key here is that you (A) understand how this type of mortgage works and (B) choose the best loan type for your particular home-buying situation.

Do plenty of research before picking a type of home loan. This article is only the beginning of your research. Don't let a mortgage lender tell you what's best for you -- take their advice, sure, but make your own decisions based on thorough research. It's your financial future, after all.

* Copyright 2008, Brandon Cornett. You may republish this article if you retain the citation notes and hyperlink below.

Citation Note: This article was created by Brandon Cornett, publisher of the Home Buying Institute network of real estate websites. You can learn more or contact the author by visiting his mortgage refinance blog at http://www.mortgage-refinance-advice.com/blog/

Chris Farkas is a Realtor with EXIT Realty Associates

www.YourWhatcomRealtor.com
www.RealBellingham.com
www.WhatcomShortSale.com

The Home Needs A Lot of Work? GOOD! What an Opportunity!

If there ever was one thing that dissuades people from purchasing a home it would be the necessity to perform a multitude of repairs. After all, who wants to purchase a home and then invest tons of money into repairing the property as well as making the requisite time commitment that such repair work would entail? Now, while this situation may sound dreadful on the surface it is actually a great opportunity for an industrious person.

If you think this is an idealized description of the situation, then look at it this way: say the average market value of a similar home in the area is $250,000. The home you are considering purchasing is valued at $190,000 due to extensive repair work that is required. So, before making a decision as to whether or not this home is a viable investment purchase it may be wise to examine what the cost of the repairs will be. If the repair work will cost $30,000 then this is not a negative…it is a huge positive! If you do not believe so then simply do the math: $190k plus $30k equals $220K. Remember, the value of the home after repairs will be in the neighborhood of $250K. So, even with $30k in repair work you will end up with acquiring the home at a $30k discount! This is to say nothing of the equity appreciation the home will eventually accrue.

Of course, no one wants to purchase a home that is falling apart, but if the required repairs can be overcome by the equity one can acquire then this is far from a bad real estate investment venture.

Chris Farkas is a Realtor with EXIT Realty Associates

www.YourWhatcomRealtor.com
www.RealBellingham.com
www.WhatcomShortSale.com