Real Estate Information

Eventhough it's a buyer's market, there is now another incentive headed towards Morris County home shoppers to help them in the purchase of a new home!

Buyers who close on a new home and finance their mortgage with Wells Fargo Home Mortgage are eligible for a closing gift valued at $1,000! Buyers can choose from among many items in the online catalog. 
 
If you have already been preapproved by another lender, Wells Fargo will reward buyers for allowing them the opportunity to provide their own preapproval decision (generally within 30 minutes or less) so that  buyers can compare and ensure they are getting the home financing option that meets their needs. Now that's a bargain!!
  
Borrowers are eligible to redeem this promotion after closing on any new purchase or refinance loan secured by a first mortgage or deed of trust with Wells Fargo Home Mortgage ("New Loan") as specified above, subject to qualification, approval and closing. This promotion is not available for all New Loan programs and New Loan excludes loans originated with a broker or a correspondent lender. Contact a Home Mortgage Consultant to learn what programs qualify.

This promotion is not available with any other promotion, discount, or rebate. Only one gift permitted per New Loan. FHA New Loans are ineligible for a gift card and are only eligible for merchandise valued in the amount stated in this promotion. This promotion is void where prohibited, applies only to designated promotion recipient and is not transferable, subject to the terms herein.  Redemption period ends within 30 days after your New Loan close date. Gifts may constitute taxable income. Federal, state and local taxes, and the use of the Gift not otherwise specified herein are the responsibility of the Gift recipient. Please present your good faith estimate or preapproval letter at the time of your request for your preapproval. If you have a current lock-in agreement, this is not an inducement to transfer your loan. This promotion may not be combined with any other offers, discounts or promotions.  

Contact me if this is an offer you are interested in and we can see if it is right for you.

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Morris County residents have a can-do spirit which has inspired a culture of entrepreneurship. For many, owning their own business and being their own boss sounds like a dream come true. However, once you begin your own business you know that working in pajamas and sleeping in is a myth and that being self-employed, while very fulfilling, can be overwhelming.

But while being a business owner is a great deal of work, it is part of the American dream. The downside is that if you are in the market to purchase a new home in San Mateo and are planning on applying for a loan based on your self-employment income, you may be faced with some challenges you weren't expecting.

Unfortunately the current economic situation has forced many lenders to tighten their requirements and that may make getting a loan more difficult than in past years for self employed home buyers. Here's the score on what today's lenders are looking for.

1. Forget about a 'stated income' mortgage - you are going to need tax documents, bank records and at least a two year history of business stability for a lender to even consider your application. Even if you are just branching out in the same kind of business that you have done for years, expect tight requirements and nearly perfect credit to move forward with qualifying.

2. Do your homework - research the banks or mortgage lenders you want to approach and find out exactly what paperwork and documentation they require to process a loan for a self-employed borrower. Spend time putting your documents together carefully and thoroughly in advance of your application.

3. Look for lenders who have a track record of accepting self-employed borrowers and try to meet with them in person to review your paperwork and find the right kind of loan package for your needs and situation.

4. Take a break from write-offs for a couple of years - those tax deductions help with your disposable income, but they also take down your gross income level. Lenders want to see a good debt-to-income ratio,not how clever you are about expensing your income away. Direct any questions about how to manage your expenses and write-offs to your CPA.

5. Stay liquid - build your bank account so that lenders can see your ability to make payments even if you have seasonal or other fluctuations in your income levels month to month or year to year. A solid savings plan and liquid assets can be helpful in getting your application approved.

Finally, if you have a strong co-signer, one with great finances and a steady income, you may be able to overcome your lender's concerns and hesitation when it comes to considering the source and level of your personal income.

Are you self employed and interested in learning more about buying a home? Contact me today, I would be happy to assist you!

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If you are in the market for a new home now there is good news for the Morris County housing market! In fact, there is good news for prospective homebuyers across the entire country!

The National Association of Realtors recently released their 2011 3rd Quarter Housing Report. In the report, they showed that combined sales of single family homes, condos and co-ops increased in EVERY state as compared to the 3rd quarter of last year. Here are the state-by-state numbers.

The next time someone says houses aren’t selling, ask them which state they live in and show them this chart!

Thanks to our friends at KCM blog for this post! Contact me to find the perfect Morris County home for you and your family!

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It’s time to sell your Morris County home, but what about that troublesome neighbor who doesn’t take care of his or her home? The overgrown lawn and untrimmed landscaping might not have been too much of a bother in the past, but now you are ready to sell and the lack of maintaining the property poses a real problem!

Many homeowners face this problem and want to know how they can expect to sell their home when their neighbor’s house looks terrible? Here are a few actions you can take to make your neighborhood a little more presentable:

1. Start by communicating with them. You may uncover a problem that you can help to solve. Is your neighbor elderly or ill? Perhaps you could help out with lawn care or basic maintenance. You might even get other neighbors involved to lend a hand.
2. If you have an HOA, you can go to the president or governing committee. Most HOA’s have strict requirements for upkeep, and they take quick action to correct violations.
3. Call the city code enforcement. If your neighbors’ grass is knee high and they have a rusted out Chevy in the front yard, they are probably in code violation.
4. Use a fence or landscaping to hide unsightly side or back yards.
5. Some home sellers who are serious may offer to pay to haul off trash or try to work out another option to try to help the situation.

Another property de-valuer, especially in today’s economy, is the foreclosure. While you can’t personally do anything about a foreclosed home in your neighborhood, you should be prepared to take a hit on your home’s appraisal value. Be aware of the home values in your neighborhood and what other sellers are listing their homes for. You may need to consider discounting your home or offering incentives to counteract the foreclosure.

Foreclosure is so commonplace now that it probably won’t affect people coming to your neighborhood – in fact, it may draw potential buyers. You just have to be ready to compete with the ‘bargain’ a foreclosure may present to your potential buyers.

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Research shows that potential homebuyers in Morris County are looking for homes with efficient, sustainable materials and homes that can serve the dual purpose of home and office. Extravagant homes are a thing of the past, and now the trend is for thoughtfully planned living areas that combine both indoor and outdoor lifestyles. Below are some of the top trends that homebuyers are looking for:

1. Green building and sustainability – from recycled materials to water wells and water collection systems, today’s home buyer is concerned with organic, sustainable features. While green building can sometimes be expensive up front, even the cost conscious know that the results may save money in the long run.
2. Energy efficiency – those who go green are also concerned with sustainable, efficient resources. Buyers want energy efficient appliances and the latest in insulation techniques using spray foam and gels. Not only do they reduce current energy costs, but energy efficient homes help with resale.
3. Outdoor living areas – more people are staying home these days, and one of the hottest trends is outdoor living areas that create a seamless indoor to outdoor space and include living room style features. From comfortable sofas to televisions and sound systems and creative outdoor cooking areas, the right outdoor space becomes a natural extension of the interior.
4. Main floor master suites with luxurious baths – now more than ever, home is an oasis for hardworking homeowners, and large masters on the main floor (away from kids rooms or play areas) are key to a homeowner’s satisfaction. Along with the master, buyers are interested in soaker tubs, walk-in showers with seating and dual showerheads.
5. Home offices – more and more people find themselves telecommuting or working from home in the evenings, and space for a home office has taken priority over traditional home features like formal dining and living and even media rooms. Home buyers seek that unique space that separates work from family living areas.

The priorities of Morris County home buyers have shifted to reflect changing economic times. The top trends reflect a new desire for comfort and flexible lifestyles, along with an ever growing concern for sustainability and efficiency.

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Purchasing a home can be overwhelming if you are not familiar with the steps and costs involved in this life changing transaction. Many buyers and sellers are especially unfamiliar with what it is involved when it comes to closing costs.

If you are aware of these specific costs and budget for them, they won’t surprise you on closing day and cause you financial stress.

Below is a guide to some of the more standard costs that you may be faced with on closing day.

• Loan Origination Fee or Points: These are the fees charged by the lender for generating your loan.
• Broker Fee: These fees are occasionally combined into the Loan Origination Fee.
• Credit Report: Lenders may require this fee up front to obtain and review your credit history. (Approx. $21 - $60)
• Appraisal Fee: This fee is normally non-refundable and will vary depending on the value of the home.
• Inspection Fee: Fees paid to have a Certified Home Inspector evaluate the structural and mechanical condition of the home.
• Title Search: This search will provide verification that the seller owns the house you are buying.
• Title Insurance: This fee insures against losses as a result of any title defects.
• Prepaid Interest: To pay up the mortgage interest to the first of the following month.
• Mortgage Insurance: Insurance to protect the lender in the event that the borrower (mortgager) is unable to repay the loan.

These are some of the most common costs involved with closing. Once you have applied for your loan, the lender will provide you with a Good Faith Estimate of what they anticipate the closing costs to be.

Be sure to do your homework and ask extensive questions about these items and your closing on your new Morris County home will go much smoother on closing day!

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Many potential home owners ask the question, “Is owning a home in Morris County a good investment?” The answer is, “Absolutely!” An article in the January issue of Realtor Magazine discussed whether homes are still a good investment in this economy. "Even with several years of price declines, the typical seller who purchased a home 8 years ago experienced a median equity gain of $33,000-a 24% increase-while sellers who were in their homes for 11-15 years saw a median gain of 40%." Those percentage calculations were according to NAR's latest survey of home buyers and sellers. "85% of recent home buyers see their home as a good investment, and nearly half think that a real estate investment is better than investing in the stock market."

It's good that people still see home ownership as a long-term investment goal because it truly is. If you or anyone you know is interested in buying a home in New Jersey, now is the best time and Morris County is the best place to do it. We have great schools, all the convenience of the city but all the comfort of the suburbs, and beautiful homes for you to build your life and raise your family.

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So you’re planning to buy a home this year in Morris County. That’s wonderful! However, if you haven’t already decided on a particular dream home here, you may want to consider buying a foreclosed home. They typically represent a great deal for a buyer and they are almost always readily available.

According to a market study, 2011 could be a record year for home foreclosures. So, how do you go about buying a foreclosure home in 2011? What are the steps involved? First, you need to understand the different stages in the foreclosure process. The process varies from one state to another (based on state laws), but the basic stages are the same

1. Pre-foreclosure: John Doe falls behind on his mortgage payments. Maybe he lost some of his income, or perhaps his mortgage payment increased in size due to an ARM loan adjusting. Two or three months after falling behind on the payments, John receives a notice of legal action from the lender. This is the pre-foreclosure stage, where the homeowner has defaulted but the lender has not yet foreclosed on the property. When the lender files a legal record of the homeowner’s default, it becomes public information. During this stage, John might try to get back on track. He could do this through reinstatement, or one of several other foreclosure-avoidance options. He might even sell the home through a short sale, with the lender’s permission. This is one way to buy a foreclosure in 2011 (or a pre-foreclosure, to be exact). If none of these options work out, the bank will eventually foreclose on the home.

2. Auction: This is often the next stage in the foreclosure process, after the bank forecloses on the home. At this point, the homeowner has been evicted from the property. Next, the bank wants to sell the home as quickly as possible, since it’s a “non-performing asset.” An auction is one way to go about it. Bidders who have cash in hand can bid on the home. Generally, their bids must be above a certain starting point. If the property is sold through auction, that’s the end of it. If it’s not sold at auction, the home goes back on the market as a bank-owned house. Sometimes the auction process is skipped entirely. For example, if the bank feels there’s not enough local demand for such properties, they might skip the auction and just list the home on Realtor.com, RealtyTrac.com and similar websites.

3. Bank-owned home: When a foreclosure home comes back on the market for sale, it’s usually referred to as a bank-owned home. You can find these homes listed on the two websites mentioned above. The home might have been through an auction prior to reaching this stage, or the bank / lender might have skipped the auction. Either way, you can be fairly certain that the homeowner who defaulted is now out of the picture entirely. From a buying standpoint, most experts agree that this is the safest stage of the process. You might not get the kind of deal you would get during an auction. But you can probably rest assured that the home is “free and clear” of any liens or other legal claims.

So how much money could you save by buying a foreclosure home in Morris County in 2011? This depends on the particular circumstances of the situation, but most sources say the average savings is 5 – 15 percent off market value.

Of course, buying a foreclosure home is not for everyone. No matter how much they research the process, some buyers are simply not comfortable with it. And that’s okay. There are plenty of homes available through traditional sales as well! We can help with you with whatever route you choose!

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When looking at your Morris County dream home, getting a home inspection is a very important step in the buying process. It is crucial to hire a qualified individual or company to inspect your potential home. Below is a list of things to keep in mind to ask your potential inspector.

1. What are your qualifications?  

2. How many home inspections do you perform in a year that is similar to my home?

3. Can you provide a list of references that we can contact? 

4. What is your turnaround time to receive the report? 

5. What will be included in the report? 

6. How much will the report cost?  

For an easy, quick search of certified Home Inspectors in your area you can visit The American Society of Home Inspectors or the National Association of Certified Home Inspectors.

Your Home Inspector will perform a “visual” inspection to determine the condition of your Morris County home. To better understand what may be included in your report and what your Home Inspector will be looking for see the list below.

• Foundation and Framing
• Roofing and Flashing
• Gutters and Drainage
• Siding
• Decks and/or Porches
• Driveways and Sidewalks
• Doors and Windows
• Stairs and Railings
• Ceilings and Walls
• Electrical
• Plumbing
• Heating and A/C
• Ventilation
• Attics
• Basement
• Garage

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