Real Estate Information Archive

The most important item in a consumer's financial resumé today is his/her credit score. The rating system most widely used currently is the "FICO" (Fair Isaac Corporation) score, the standard measure for credit risk. Developed in 1989, this three-digit number between 300 and 850 predicts one’s creditworthiness. The higher a credit score, the more likely loan approval and/or favorable interest rates.  Click here and here for more in-depth information on how your credit rating may impact your desire to buy Montgomery AL real estate.

Recently, however, FICO has teamed up with data provider CoreLogic on a new credit scoring system specifically for mortgage lenders aimed at giving them more confidence in risk taking and hopeful homebuyers of Montgomery AL real estate more credit for good financial decisions.  The FICO Mortgage Score Powered by CoreLogic uses the FICO model to mine information from a new CoreLogic credit report, much as the old model worked with other data sources to produce the familiar FICO score.

The new system supplements traditional credit data with property transaction data, landlord and tenant information, borrower-specific public data, and other alternative credit information that creates a more complete and predictive evaluation of a consumer's credit risk profile to help lenders better manage risk.

Will this new system benefit folks applying for a mortgage on Montgomery AL real estate? 

Yes, says Bradley Graham, a FICO senior director.. "A significant portion of people moved up on the new credit score scale and did so with an increase in predictiveness," he said.  "For example, about 23 percent of persons with a credit score below 680 moved above that score, often way above," Graham noted.   He predicted that 8% would score above 757 and an additional 3% would rank higher than the current 715 median score.   Also, validation studies run by the company found the scoring was 7.5 times more predictive of loan risk performance than the current models.

No, according to a recent article in U.S. News and World Report.  It argues that the addition of CoreScore  will greatly increase a bank's access to personal finance information (and possible misinformation) including  property values and taxes, tax liens, alimony judgments, pay day loans, and rent payments.

As only about 25 lenders currently use the new scoring system (not yet approved for Freddie Mac/Fannie Mae), its future is uncertain.

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Sandra Nickel and the Hat Team have distinguished themselves as leaders in the Montgomery AL real estate market. Sandra assists buyers looking for Montgomery real estate for sale and aggressively markets Montgomery AL homes for sale. Sandra is also an expert in helping families avoid foreclosure through short sales and is committed to helping families in financial hardship find options. For more information you can visit AvoidForeclosureMontgomery.com.

Interested in buying a bank-owned home? Get bank-owned listings alerts FREE!

You can reach Sandra by filling out the online contact form below or give her a call anytime.

Few people can buy a home for cash. According to the National Association of REALTORS® (NAR), nearly nine out of 10 buyers of Montgomery AL homes finance their purchase, which means that nearly all buyers -- especially first-time purchasers -- require a loan.  The real issue with real estate financing is not getting a loan (almost anyone willing to pay lofty interest rates can find a mortgage). Instead, the idea is to get the loan that's right for you -- the mortgage with the lowest cost and best terms.

Realtors routinely urge prospective buyers to get pre-approved for a loan before they even begin looking at Montgomery AL  homes. They also stress the importance of obtaining a letter of pre-approval rather than of pre-qualification.  Although many homebuyers use these two terms interchangeably, there are significant differences between the two.  Simply stated, pre-qualification lets sellers know that a prospective buyer of their home is likely to qualify for a loan, whereas pre-approval, although not an absolute guarantee, indicates that a loan officer has determined a borrower is credit-worthy and financially able to qualify for a certain loan.

The advantages of searching for a Montgomery AL  home with evidence of pre-approval in hand are many.  In essence, they include the following:

• Mortgage preapproval is going to tell you exactly how much money you can borrow. This way, you will know how much your mortgage payment is going to be ahead of time.
• You won’t waste time (or be sorely disappointed) by looking at houses you can’t afford.
• Sellers and Realtors will take you seriously.  They are much more comfortable with the certainty that you can obtain a loan (and that the deal won’t fall through), and thus may be more willing to negotiate.
• Once you find a home, the mortgage process can proceed more quickly because your lender will already have.

Although lender requirements for pre-approval may vary somewhat, be prepared to supply the following information:

• Purchase Agreement
• Social Security Number and Date of Birth
• W-2/1040 Forms
• Recent pay stubs
• Bank account statements
• Credit card statements
• Debts and liabilities
• Mortgage or rental histories
• Investment properties
• Employers
• Asset statements
• Personal property
• Current and previous statements

Supplying all this information may seem like a time-consuming process, but in the end of your house-hunting journey, you’ll be glad you did it!

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Sandra Nickel and the Hat Team have distinguished themselves as leaders in the Montgomery AL real estate market. Sandra assists buyers looking for Montgomery real estate for sale and aggressively markets Montgomery AL homes for sale. Sandra is also an expert in helping families avoid foreclosure through short sales and is committed to helping families in financial hardship find options. For more information you can visit AvoidForeclosureMontgomery.com.

Interested in buying a bank-owned home? Get bank-owned listings alerts FREE!

You can reach Sandra by filling out the online contact form below or give her a call anytime.

Simply stated, low home prices and low interest rates make this a great time to become an investor in Montgomery AL real estate.  "We haven't seen home prices this low in so many years, coupled with the rates being so low," says Jill Sjolin, an agent in Washington who specializes in investment properties. "When the money is cheap to borrow and the houses are cheap to buy, it's absolutely the best time to invest."

It goes without saying, of course, that the first step in acquiring investment property is to analyze your finances to make sure you can afford it without compromising the security of your other assets.  Look closely at your income, savings, and spending habits. Check each of your three credit reports well before you start looking at Montgomery AL real estate or shopping for lenders. Consider tax implications, property taxes, and renovation costs. Online calculators can provide you with a guide to possible financial outcomes of the purchase and rental of an investment property.

The next step is to determine the goal for your purchase. Investment property can yield income two ways--through regular rents and/or capital gains. Most experts advise novices to invest for the long term rather than try for quick flips and to begin with residential Montgomery AL real estate rather than commercial properties.  Click here for more tips, including financing options, for first-time investors.

Once you have determined the how? and the why? of your investment transaction, you move on to the where?  Locating the right property is easier if you work with a real-estate agent experienced in investment property deals who can help you locate promising properties.  A second option is to collaborate with a more experienced real-estate investor and close a deal together. In this economy, an experienced real-estate investor may be willing to work with you in exchange for the capital you can provide, giving you the opportunity to glean investment knowledge and experience firsthand.

With foreclosures flooding the real estate market, many investors are hitting the auction circuit looking to capitalize on the next great deal. For those who are new to this venue, there are a few ‘rules of thumb’ you’ll want to keep in mind before placing your bid. PropertyAuctions.com provides detailed information, explanations, and some essential tips for those looking to get in on the auction action. 

Search all Montgomery AL Real Estate And Homes For Sale.

Sandra Nickel and the Hat Team have distinguished themselves as leaders in the Montgomery AL real estate market. Sandra assists buyers looking for Montgomery real estate for sale and aggressively markets Montgomery AL homes for sale. Sandra is also an expert in helping families avoid foreclosure through short sales and is committed to helping families in financial hardship find options. For more information you can visit AvoidForeclosureMontgomery.com.

Interested in buying a bank-owned home. Get bank-owned listings alerts FREE!

You can reach Sandra by filling out the online contact form below or give her a call anytime.

Talk about a setback!  You’ve spent recent months preparing your house for sale or looking for the perfect house to buy, negotiating a fair price, and anxiously awaiting the settlement date.  And now the appraisal on that piece of Montgomery AL real estate has come in below the asking price.  What to do?  First, whether you are the buyer or the seller, remain calm.  This is not an unusual occurrence in today’s market.  Understanding the possible reasons for the disappointing appraisal and exploring strategies to save the transaction are your next steps.

REASONS F0R A LOW APPRAISAL:

• Overpricing by seller
• Declining market values
• An abundance of foreclosures or short sales in the neighborhood
• Inflated price resulting from multiple offers
• Incorrect evaluation by the appraiser
• Cash back to buyer from the seller
• Error(s) on the part of the appraiser

WHAT A SELLER CAN DO:

• Lower the price of the Montgomery AL real estate.  After researching and analyzing the latest comps with your Realtor, realistically reconsider your asking price and decide whether you are willing to begin the selling process all over again.
• Offer to carry a second mortgage for the buyer if the above option is not possible.

WHAT A BUYER CAN DO:

• Ask the seller to make up the difference in cash.
• Ask the lender for a new appraisal after presenting your justification for this request.

OPTIONS AVAILABLE TO BOTH SELLER AND BUYER:

• Check the appraiser’s report for errors (in facts or omission) in information about the Montgomery AL real estate.  Verify the accuracy of the square footage, the number of bedrooms and bathrooms.  Have any recent improvements you’ve made to the property been included?  If not, appeal the appraisal.
• Supply to the underwriter a list of recent comparable sales that justify the selling/purchase price and ask for a review of the appraisal.
• Order a new appraisal.  Although you will have to pay for it, it could be money well spent if it results in a higher appraisal. Your lender will give you a list of appraisers if the loan is an FHA one.  If it’s conventional, it is subject to the rules of the Home Valuation Code of Conduct (HVCC).
• As a last resort, cancel the transaction.  Most purchase contracts contain a loan contingency which deals with low appraisals.

Search all Montgomery AL Real Estate And Homes For Sale.

Sandra Nickel and the Hat Team have distinguished themselves as leaders in the Montgomery AL real estate market. Sandra assists buyers looking for Montgomery real estate for sale and aggressively markets Montgomery AL homes for sale. Sandra is also an expert in helping families avoid foreclosure through short sales and is committed to helping families in financial hardship find options. For more information you can visit AvoidForeclosureMontgomery.com.

You can reach Sandra by filling out the online contact form below or give her a call anytime.

When you buy Montgomery AL real estate without a down payment of at least 20%, the lender, be it FHA or a private mortgagor, requires that you purchase mortgage insurance to protect it against financial loss.  Mortgage insurance, not to be confused with mortgage life insurance or homeowner’s insurance, assures the lender of no financial loss or a very reduced one) if you default on the loan.

The cost of this insurance—from .25 to 6% of the loan—is almost always the responsibility of the buyer of Montgomery AL  real estate.  (There is such a thing as lender-paid insurance, but this type carries a higher interest rate and is non-refundable.)  Usually the borrower has a choice of payment plans, which included the following:

• Annuals. The borrower pays the first-year premium at closing; an annual renewal premium is collected monthly as part of the total monthly house payment.
   
• Monthly Premiums. The cost is slightly more than traditional mortgage insurance plans but monthly premiums dramatically reduce mortgage insurance closing costs. Borrowers pay for mortgage insurance monthly as part of their total monthly house payment but need to pay only one month's mortgage insurance premium at closing, rather than one year's. 
   
• Singles. The borrower pays a one-time single premium (instead of an initial premium and renewal premiums). Since single premiums are typically financed as part of the mortgage loan amount, no out-of-pocket cash is used for mortgage insurance with a nonrefundable premium at closing.

These plans offer the choice of refundable or nonrefundable premiums. A refundable premium allows the borrower the opportunity to receive money back on any unused portion, in the event that mortgage insurance coverage is discontinued before the loan is paid in full. The cost for a nonrefundable premium is slightly less than that of a refundable premium, thereby giving the borrower a small savings. If coverage is discontinued on a loan with a nonrefundable premium, the borrower has no opportunity for a refund.   If you are unsure which plan is best for you, visit your state mortgage insurance office.

Unfortunately, rumors and myths abound about the difficulty or even impossibility of cancelling refundable mortgage insurance.  Fortunately, however, the Homeowner’s Protection Act of 1998 requires lenders of insurance loans for Montgomery AL real estate to notify consumers of their rights in this regard on a yearly basis and to automatically cancel the insurance when the mortgage has amortized to 78% of the original property value.  In addition, you may apply for cancellation of your mortgage insurance when that percentage reaches 80%.  For specific details of the HPA requirement in terms of timing and content of these notices, click here. 

While paying for mortgage insurance does entail an extra expense for the home purchaser, it also has its benefits.  It allows new buyers to become a homeowner sooner than if they needed to have a 20% down payment and greatly increases their buying power.  Repeat buyers can gain a significant tax advantage by having more deductible interest to claim.  They can also use the money saved by not putting down 20% to cover moving costs or to put into other investments.

Search all Montgomery AL Real Estate And Homes For Sale.

Sandra Nickel and the Hat Team have distinguished themselves as leaders in the Montgomery AL real estate market. Sandra assists buyers looking for Montgomery real estate for sale and aggressively markets Montgomery AL homes for sale. Sandra is also an expert in helping families avoid foreclosure through short sales and is committed to helping families in financial hardship find options. For more information you can visit AvoidForeclosureMontgomery.com.

You can reach Sandra by filling out the online contact form below or give her a call anytime.

If you are a potential purchaser of Montgomery AL real estate, you need to be familiar with the various types of mortgages available to you and the terminology that accompanies them.  So many choices may be a boon to borrowers, but that very variety holds the potential for much confusion.  Here is a simplified guide to terms and types.

TERMS:

• Fixed rate:  The interest rates do not change during the life of the mortgage, thus allowing you to know the amount of your payment at all times.
• Adjustable rate (ARM):  The interest rate is tied to a certain index and margin and can fluctuate up or down, thus affecting the amount of your payment.
• Step:  The interest rate and monthly mortgage payment for your Montgomery AL real estate remain the same for a specified period of time, but after that the interest changes to the prevailing rate and stays there
• Balloon:  A loan payment that expands after a specified period of time.  Similar to a fixed rate loan in the early years but with a steep payment of all money owed at the end.

TYPES:

• Fixed rate mortgage:  Traditionally for 25 or 30 years, but also available for 15 or 20.  Although interest rates are somewhat higher than for other types of loans, that rate remains in place for the duration.  Especially good if you plan to live in your home for at least ten years.
• 1 Year ARM:  Also has a 30 year duration, but the interest rate is adjusted each year.  It is important for you to know how often the rate can be changed and if there are annual and life-of-loan caps on the rate.  Beware of payment caps, which can result in negative amortization.
• Hybrid mortgage:  Sometimes called a three-year fixed or five-year fixed, this type of mortgage incorporates some of the features of both a fixed rated and an ARM, meaning that the interest rate on your Montgomery AL real estate will remain the same for the first three (or 5) years but will then convert to a one-year ARM for the remainder of the loan term.
• Balloon mortgage:  In this type of arrangement, you pay a low rate of interest for a certain amount of time.  At that point, the entire amount owed is due, requiring you to refinance your property or make a final—and extremely large—payment to the lender.
• Interest-only loans:  As the name suggests, you pay nothing on the principal for the first five years.  After that you are expected to make regular monthly payments which include both interest and principal.
• FHA loans:  FHA mortgage loans are insured by the government through insurance that is funded into your loan. FHA allows down payments of as little as 3%. 
• VA loans:  Available to veterans who have served in the US military forces.  The main benefit to this type of loan is that you do not need a down payment.  The loan is guaranteed by The Department of Veteran Affairs.

Being familiar with mortgage terms and types should make it easier for you to talk with your Realtor and/or lender about which option is most beneficial for you.

Search all Montgomery AL Real Estate And Homes For Sale.

Sandra Nickel and the Hat Team have distinguished themselves as leaders in the Montgomery AL real estate market. Sandra assists buyers looking for Montgomery real estate for sale and aggressively markets Montgomery AL homes for sale. Sandra is also an expert in helping families avoid foreclosure through short sales and is committed to helping families in financial hardship find options. For more information you can visit AvoidForeclosureMontgomery.com.

You can reach Sandra by filling out the online contact form below or give her a call anytime

Traditionally, both sellers of Montgomery AL real estate and those looking to purchase a home have avoided doing so during the winter months, especial in December.  Because the last month of the year is a time of many religious, social, and cultural celebrations, most people feel they are too busy to deal with real estate matters and/or are convinced that the market is pretty much dormant until at least early spring.  Not so, say many Realtors!  Not only do many folks have vacation time in December and are thus free to house shop, but the slower months are often the ones where buyers are really serious and prices have been reduced. 

According to Lendingtree there are five strong reasons to buy Montgomery AL real estate during this season:

• Lower prices. Because many people are too busy to house hunt now, the slackening of demand is reflected in softer house prices.
• Less competition. With fewer active house-hunters out there, you are unlikely to end up in a bidding war, and sellers will be willing to negotiate.
• Favorable mortgage terms. Because there is less demand for mortgage money during the holiday season, lenders may be willing to shave a few basis points off the interest rate or to forgo some of their fees in order to get your business.
• Tax deduction. If you close on or before December 31, you are likely to be eligible to deduct the interest component of your first monthly mortgage payment and any money you paid for points from your taxable income for this year.

If you’re a seller, check out Realtor.om for a long list of reasons that support their belief that December is a good time to sell your Montgomery AL real estate.  Some of their arguments include:

• Less competition.  People who look at your home over the holidays are serious buyers who have fewer homes from which to choose.
• Business moves.  January is traditionally a month where employers have to move so they can’t wait until spring.  They have to buy now-- you’re there to capture that market.
• Advantage for you.  By selling now, you have the opportunity to be a non-contingent buyer for next year when houses are less and you’ll have more opportunities and properties to choose from.
• Timing.  Many potential buyers want to settle before the end of the year for tax reasons.

Search all Montgomery AL Real Estate And Homes For Sale.

Sandra Nickel and the Hat Team have distinguished themselves as leaders in the Montgomery AL real estate market. Sandra assists buyers looking for Montgomery real estate for sale and aggressively markets Montgomery AL homes for sale. Sandra is also an expert in helping families avoid foreclosure through short sales and is committed to helping families in financial hardship find options. For more information you can visit AvoidForeclosureMontgomery.com.

You can reach Sandra by filling out the online contact form below or give her a call anytime.

So your life circumstances indicate that now is the time for you to buy a piece of Montgomery AL real estate. Perhaps this will be your first home or you need a larger space to accommodate a growing family. You may be in search of a better school district or be forced to move because of your job. Whatever the reason for your housing search, there are four basic areas you need to investigate and specific questions you should ask before making a final decision on any house.

WISH LIST:

Before you actually tour any Montgomery AL real estate, you should determine exactly what you are looking for by asking yourself (and your family members) questions such as “What type of house do I want”? How much space will I need? What type of community and amenities are important to me? How much can I realistically afford to pay?

LOCATION:

Once you have narrowed down your neighborhood choices, do further exploration of these locations by asking about zoning, since apartments and commercial/industrial buildings lower the real estate value of homes. Is the appearance of the community appealing? Does the school district have a good reputation/rating? What about noise? Consider nuisance factors such as traffic sounds, barking dogs, railroad tracks, etc.--anything that will disturb or annoy you on a recurring basis. Ask, too, about property easements, commuting time to and from work, and demographics. Will you be the only family with young children or the sole 50+ resident in the neighborhood?

CONDITION OF THE MONTGOMERY AL REAL ESTATE:

In order to determine and structural or maintenance issues, ask about the age of the house, roof, and appliances. What kind of foundation and insulation does the home have? If you’re looking at an older property, ask if the plumbing and electrical systems have been updated. Has the house been inspected or appraised recently, and, if so, were any problems documented? Will the exterior of the residence require annual maintenance?

COST:

Asking the right questions in this area is extremely helpful in determining your offer on the Montgomery AL real estate. Inquiring about neighboring comps, what the seller paid, and how much he owes will give you an idea of the rise/fall of nearby prices and alert you to possible short sale or foreclosure status. Ask how long the house has been on the market and if there have been any offers; perhaps the seller will be willing to negotiate price or offer incentives. Addition inquiries should be made re: the cost of insurance and property taxes on the property and the amount of any homeowners’ association fees.

Arming yourself with answers to questions such as these should help you make an educated decision as to whether or not a particular piece of Montgomery AL real estate is for you.

Search all Montgomery AL Real Estate And Homes For Sale.

Sandra Nickel and the Hat Team have distinguished themselves as leaders in the Montgomery AL real estate market. Sandra assists buyers looking for Montgomery real estate for sale and aggressively markets Montgomery AL homes for sale. Sandra is also an expert in helping families avoid foreclosure through short sales and is committed to helping families in financial hardship find options. For more information you can visit AvoidForeclosureMontgomery.com.

You can reach Sandra by filling out the online contact form below or give her a call anytime.

Your credit score is a number that helps lenders predict how likely you are to make your payments on time. This score affects your ability to obtain credit and helps determine what you pay for credit cards, auto loans, and mortgages on Montgomery AL homes. Even your insurance rate is related to your score. The higher your score, often referred to as a FICO score, the more apt you are to be approved for and pay a lower interest rate on new loans. Scores ranging from 650 and below are considered bad and indicate to the lender that you are a very high risk. Chances are you will be unable to secure a loan, or if you are, it will be at a much higher interest rate and/or require a cosigner.

What If there Are Errors

What to do if you have a low score and do not qualify for a mortgage on a Montgomery AL home? Your first action should be to check your credit report for errors. If you find erroneous information, you need to act immediately by contacting both the credit bureau (the three major ones are Equifax, Experian, and Transunion) and the organization that provided that information.

• The credit bureau/agency: Send a certified, return receipt requested letter to the bureau pointing out each inaccuracy and enclose copies of documents which support your claim as well as the report itself (with the misinformation highlighted). Factually explain why you dispute each item and request a deletion or correction for each one.
• The creditor or information provider: Send the same type of letter and enclose the same documents. Request that the provider notify you of action taken (generally within 90 days) so that you can verify the amended information.

If there are no errors on your report, then you should take immediate steps to improve your credit. Ways to do this include the following:

• Stop using your credit cards. Do not continue to accumulate debt.
• Get current on delinquent accounts. Since payment history makes up 35% of your score, this action will have a great impact on your score.
• Keep accounts with balances open, but don’t apply for more credit.
• Call your creditors. Explain your financial situation and ask about possible hardship programs which will temporarily reduce your monthly payments.
• Begin paying off your existing debts, even if you have to sell some belongings to do so. Come up with a get-out-of-debt plan and stick to it.
• Get professional help. There are resources available to help you reestablish a good credit rating. Contact the National Foundation for Credit Counseling for assistance.

7. Be patient. Realize that improving your credit score takes time and that there is no quick-fix --and keep in mind your goal of owning a Montgomery AL home.

Search all Montgomery AL Real Estate And Homes For Sale.

Sandra Nickel and the Hat Team have distinguished themselves as leaders in the Montgomery AL real estate market. Sandra assists buyers looking for Montgomery real estate for sale and aggressively markets Montgomery AL homes for sale. Sandra is also an expert in helping families avoid foreclosure through short sales and is committed to helping families in financial hardship find options. For more information you can visit AvoidForeclosureMontgomery.com.

You can reach Sandra by filling out the online contact form below or give her a call anytime.

Considering buying a newly built Montgomery AL home? Here are some things to think about.

ADVANTAGES:

• HOME WARRANTY: Generally this warranty is good for one year and covers heating, cooling, and electrical systems and plumbing. Some also cover appliances.
• INCENTIVE PROGRAM: Many builders use incentives, both large and small, to attract buyers. Examples include vacations or furnishing for your Montgomery AL home. Note: these incentives are often offered only if you use the builder’s lender.
• CUSTOM DESIGN: If you become involved with the builder early in the building process, you may have a say in the home’s construction--from customized features to flooring to colors.
• FASTER CLOSING. No titles to search.
• SAFETY/HEALTH: No worries about old wiring. lead paint, or asbestos.
• LESS MAINTENANCE: Materials used in the exterior of a new home do not require yearly painting.
• ENERGY EFFICIENCY: Less waste, and thus lower bills.

PRECAUTIONS:

• HIRE A BUYERS REAL ESTATE AGENT who is experienced in new home sales. A strong realtor negotiating on your behalf can save you thousands!
• CHECK OUT THE BUILDER: Talk to those already living in the new community. Find five or six homeowners who have purchased a Montgomery AL home from him in the past five years. Ask what they like and don’t like about their houses. Has he been responsive to problems? Check with the Better Business Bureau to see if there are complaints against him.
• EVALUATE THE BUILDER’S LENDER: Some builders own their own lending company and therefore don’t offer you the best deal . Beware of being locked into using that lender in order to qualify for incentives. Request that the lender guarantee its Good Faith Estimate.
• HIRE A HOME INSPECTOR: Even if you have a one year warranty on your Montgomery AL home, some problems won’t surface until that service has expired.
• GET LEGAL ADVICE: Have a real estate lawyer check your purchase agreement to make sure you are protected and to explain your liabilities and commitments.