Dean Graziosi | Dean Graziosi Real Estate | Dean Graziosi Investment

Ever since the housing crisis began, you have probably been hearing about credit scores. Credit is needed for just about everything. It is much easier to get a new car loan, an installment loan for a home repair, or a mortgage for your dream home if you have a good credit history. The problem is that the whole idea of credit is confusing to many people and it is not always easy to find out exactly what your credit score is or what it means. One of the biggest mysteries of credit is how exactly it affects a mortgage for a home.

There is no debating the fact that the higher your credit score the better deals you can get. Where mortgages are concerned, you are able to get mortgages that have lower interest rates, higher borrowing limits, and lower monthly payments. The lower interest rates that you pay with a better score is what lowers the monthly payments that you make. Interest is money that is added on to the money that you borrow and increases the amount that you have to pay back over the life of the loan. The lower the rate the less you have to pay to borrow the money.

Credit tells your lenders how much they can trust you. High scores mean lenders will be willing to lend you money while low scores mean they will not want to. Your score, called the FICO score, is determined using a number of factors and a specific formula. The credit bureaus such as TransUnion take these factors into account when assigning a credit score. The factors are your previous performance and how often you paid creditors on time, the amount of money you owe, how long you have been using credit, and what kinds of credit you have. Credit inquiries also count but to a much smaller degree. Your past payment history is the most important factor. Using the FICO score, a lender will use the score and reason codes to decide where you fall on their lending guidelines.

Scores range from 350 to 950. Very few people actually have scores in the 900s. Those who get the best loans have scores that are at least 800. Many lenders require borrowers to have scores in the 700s. However, there are lenders who will consider lending money to you for a mortgage even if you are considered to have poor credit, which is usually considered to be anything below 500, though you will end up paying more in interest. Time is the best method of getting a higher credit score. Be sure to pay your bills on time, pay off any debts you owe, and your score should climb. 

A lot of prospective home owners are concerned about listing their home in today’s unstable realty market.  Since the market has gone from a seller’s market to a buyer’s market with more and more homes being listed every day, sellers are worrying that they will not get what they feel their home is really worth.  In past years sellers would have no worries when it came to listing their homes, often times available homes that were in great shape would set off bidding wars once they hit the market.  Unfortunately in the world we live in today, sellers are faced with the decision to list or wait until the market picks up again.  But if you do choose to list your home there are a few ways that you can make sure that it gets all of the attention from agents and buyers that it deserves.

The first thing you will want to do is make the exterior appealing to prospective buyers.  If any of the shrubbery is overgrown now is the time to trim it down and make it look appealing.  If your house paint needs some updating that should also be taken care of before you have it listed.  The first thing that your real estate agent will want to do is take pictures, since we are a visual society many of our first impressions are determined with a quick glance at pictures that your agent has listed online.  When preparing the pictures of your home, it is important that they feature up close shots of the entire exterior of the home including the backyard and garage.  The more pictures that you have available for buyers have to look at the more interested they will be in viewing your home in person.

Along with exterior pictures your agent will also want interior pictures as well.  When preparing your home for these photographs, it is important that you remove any clutter from the rooms that will photographed.  You will also want to open any blinds or drapes to let natural light in.  If you have rooms that are a bit darker you will want to turn on any lights that will make the room look more appealing and less like a dungeon.  It is important to focus your pictures on special details that you may have such as, new cabinets, granite counter tops, wood floors or a fireplace. 

Buyers do most of their research online before actually contacting an agent to schedule a viewing.  Ask your agent to include a virtual tour of your property in your selling arrangement.  A well designed virtual tour will grab the buyer’s interest and make them feel as if they are being led from room to room.  The better your photos and virtual tour are the more interested prospective buyers will be to view your home in person.

In addition to the photos and virtual tour that your agent will make available online, you should also ask your agent to use print advertising along with online advertising.  Many people still read newspapers and your home should be listed in the major newspapers in your area.  There is no such thing as too much advertising when you’re trying to sell your home.  Sellers should utilize all of the resources at their disposal when trying to sell their home, the more people you reach the better your chances of getting what you’re asking for.

Many real estate experts agree that in today’s market overpricing your home can be a very big mistake.  It is better to list your home at fair market value, than overprice it in order to leave room to negotiate or just to test the market.  When the market was in better condition these tactics may have worked, but in todays flooded market, buyers have more options available and do not need to waste time viewing listings that they know are overpriced.  By listing your home over fair market value you may cause your home to sit for months without even getting an offer, the longer buyers see your house sitting on listing sites, the more they may begin to wonder if something is wrong with the property.

Other problems that may occur from overpricing your home include no prospective buyers wishing to view your home.  Offering an overpriced home to buyers who have become familiar with the appropriate values of homes in your area will know that your home is priced too high and will steer clear.  By overpricing your home, you may also inadvertently be helping others to sell.  Buyer who see your asking price and the price of others in the neighborhood that are similar to yours, will more than likely make an offer on the lower priced home rather than yours.  So, in effect, you are actually helping your neighbors sell their home instead of getting your own home to sell.

If you are lucky enough to get the attention of a buyer and they actually agree to pay what you’re asking the deal may fall apart when there is an appraisal done on the property.  More than likely, your home is not going to appraise for the higher price you have it listed under.  Lenders will not approve a loan for more than what the home is actually worth.  The longer your home sits on the market, the harder prospective buyers will try to negotiate.  This will give buyers the control of the negotiating process and may cost you by having you make more concessions in order to close the deal.  What seemed like a good idea in the beginning may ultimately end up costing you any extra profit that you may have seen if your home sold quicker.

By pricing your home too high you are also cutting out prospective buyers who could actually afford the true market value of your home.  Listing your home too high may take it out of the price range of many buyers who are looking in a specific price range.  This will not only limit the amount of buyers who look at your home, but buyers who are familiar with listings in the range of your asking price are familiar with what to expect for the amount they will leave unimpressed with your home and search for one that is better suited to the price range you are asking.

There is a lot to be said for doing real estate business with a partner. Partners can increase your pool of financial and intellectual resources. If you work with one or more other investors to do a real estate deal, it relieves some of the possibility of loss. In fact, with the right associates, you may find that your real estate business is more stable and profitable. Plus, it is often easier to push the deal through when you are not working alone. There are several things to keep in mind when looking for a partner in real estate.

1. Partners can come from many places.

Many people find their partners for real estate deals in their own families. Sometimes a parent, a sibling, or an aunt or uncle will help you in a real estate deal. This is a fine way to do business if your family has something to offer you in terms of money or experience. However, you may need to look outside your family. Friends and colleagues can also be good partners if they have the right qualifications and temperament.

2. Find a partner with experience.

Ideally, the partner you choose will know the score on real estate transactions. She will understand the local market. It is much easier if the lingo and the concepts of real estate are second nature to her. A partner who has made at least a few deals in the past will bring invaluable experience to the bargaining table. The person does not have to be a professional investor, although that is not a bad choice, but she it is good if she has some experience under her belt.

3. Look for a partner with financial resources.

There are other benefits a person can bring to a partnership besides the financial ones, but money certainly helps. If your partner has money to invest, it makes it easier to come up with down payments for financing. Renovating a house to be flipped can be done without loans, making the process quicker and smoother. A partner who can contribute financially makes the job of buying and preparing real estate for a sale easier to accomplish.

4. You need a partner you can trust.

Watch out for people who want to make a fast buck at your expense. Even in families, there is the possibility that another person who invests with you will burn you. Therefore, it is essential to make sure that you can trust the person you are dealing with before you become partners. Find out about his past dealings, and talk to people who have been on the other side of the transaction and see how he treated them. Most of all, talk to people who have partnered with him in the past if possible. Get a feel for his ethics so you will know where you stand.

Finding a partner for real estate transactions takes thought and research. It is best not to jump into business with the first person who wants to invest with you. Instead, take your time and find someone who can contribute substantially to the partnership.

In our current economic situation, many people are finding it difficult to come up with the large down payments that many lenders are requiring.  This trend is leading many prospective home buyers to look into the option of renting to own.  This option is becoming more popular among first time home buyers, who are having a difficult time receiving preapproval from lending agencies or can’t come up with a down payment.

In order for a rent to own option to be successful, a buyer must first find a seller who is open to this type of arrangement.  Many sellers are warming to this option; it offers them a profitable alternative to letting their house sit empty for months waiting for a buyer or renter to come along.  Once you have found a seller who will work with you, the next step is negotiating the terms of the deal.

When negotiating your deal you will want to find out if the seller will require any type of down payment and if all of the monthly payment will go towards the purchase price of the home.  Some sellers may require a smaller down payment just to insure that you are serious about the deal.  Others may not require any, if you agree to pay the first and last month’s payment.  You will also want to know if all of your monthly payment will be applied to the agreed on sale price of the home.  Some owners may choose to only apply a percentage of each month’s rent while others will apply the full amount.  In the long run, you will want to negotiate that all of your monthly payment be applied to the balance. 

Working with an agent who has experience in these types of sales is important.  They will help you spot a good deal and steer you away from sellers who are negotiating a one-sided deal.  Once you have found a seller who you feel comfortable dealing with, you will want to seek the advice of an attorney who is experienced in these types of contracts.  This will insure that the contract offered is a fair one that benefits you as much as it does the seller.

Having the counsel of professionals when negotiating a rent to own deal is extremely important, what you may feel is a good deal may not appear so to them.  They will look out for your interests and insure that you are not throwing money away on a bad deal.  First time home buyers may walk away with a better deal when this route is taken than if they would have gone the traditional route and sought funding from a lender.  For other prospective buyers this choice offers them the chance to become homeowners without having to meet all of the guidelines set forth by lenders.  Whether this is the right choice for you is something that you will have to think about and decide on your own.

Here is a list of the five best places you can buy hot real estate now. With the market currently a buyer’s market and sellers unable to move houses as much, this real estate list can help you choose a great place to live.

The first hot area to buy real estate is Austin, Texas. Why is this a hot real estate area?

Austin is a beautiful place to live. If you have lost your job you will be happy to know that Austin, Texas, had a 14.1% of job growth in the year 2010. You may want to apply ahead of time to find a job before moving. If you are into a tech career there are more then 2000 tech companies in the capital of Texas. The national USA average of unemployment is 9.8% whereas Austin, TX is 7.1%. When looking to buy a home the average median price is $122,921. If you currently own a home, sell it and you may already be ahead with the low cost of homes here. All of these benefits make Austin a great place to live!

Another one of the hot areas to buy real estate is Broomfield County, Colorado which is located between breathtaking Denver and Boulder. In this area you will find jobs galore including high tech jobs. In the last ten years jobs increased by 50%. Average median home price is $239, 000. Get skiing and hiking in Colorado now!

Looking for someplace warm to buy hot real estate? Check out Deerfield Beach, Florida. The median home price is only $89,400. Enjoy a home with a view of the beach. Imagine waking up every morning, grabbing a cup of coffee and relaxing by the beach.

If you are looking to retire and find a new piece of real estate check out Durham, North Carolina. The median home price is $174,900. Enjoy as many of the one hundred plus activities the Duke University has to offer seniors. You can also enjoy your golden years playing golf, seeing Broadway hit shows as well as concerts and stay young hiking.

On the opposite spectrum if you are looking for a hot piece of real estate to buy and raise your children check out Woodbury, Minnesota. In this area of Minnesota the schools are phenomenal. Plenty of jobs await at 3M and the state government. Enjoy the wonderful lakes for swimming, fishing and boating. Other fun activities include winter activities such as snowmobiling, snowshoeing, making snowmen with your kids, sledding, ice skating, etc. You and your family can hike, enjoy the grassy parks and biking. There is never a dull moment. Median home price in this hot real estate area is $245,000.

The fifth best place to buy a home is Madison, Wisconsin. You can choose to live in Madison or buy a hot piece of real estate rental. There is so much to do in Wisconsin’s capital including many sports, cultural events, affordable housing, one of the top rated colleges, shopping, variety of restaurants, four season activities and so much more. The average median home price is $199,900.

With a little research and help from a real estate agent you can find the best place to live for your current situation. Start living the dream now.

Millions of people all over the world are looking to buy a new home. Lower interest rates have come along over the past few years making it more affordable than ever to become a homeowner. For most people owning a home makes more sense than renting. The rest of this article will give you tips on what to look for when you get ready to buy your home. You will learn what you need to have in order to purchase your first property.

Get Your Financial House In Order

If you want to purchase your first property you need to start saving your money. You will need to make sure you have enough saved up to pay for the down payment and the closing costs. To be on the safe side you should always try to have at least 20 percent of the asking price to put down as a down payment. Otherwise, you will need to buy private mortgage insurance, which will usually cost you more in the future because your monthly payment will be higher.

Check Your Credit Report

Before you start house hunting, be sure you check your credit report. You may have an error on your credit report and not even be aware of it. If you do have an error on your credit report, it can cost you in terms of the interest rate you will pay. You will usually pay more in interest if you have a less than favorable credit report. If you check your credit report early enough in the game, you may give yourself enough time to fix whatever credit problems you may find on your credit report. Always make sure you plan ahead. Allow enough time to fix your credit.

Purchasing a property is a big commitment. Be sure to get the best possible deal. This usually means you should know your credit and where you stand. Fix whatever problems you find so you can get a better deal. Allow yourself enough time to make an educated decision. You do not want to fall into the trap of purchasing something you don’t like because you did not do your preparation.

For many years mobile homes carried many stigmas and prejudices around them. However, there are plenty of advantages to investing in mobile homes. Even though the advantages are not always obvious, they exist and are real One of the advantages of investing in mobile homes is fast equity building. The myth about mobile homes depreciating is only half true. When you buy mobile homes in parks they generally go down in value over time. On the other hand, if you buy mobile homes on land, they’ll usually go up in value.  Buy Mobile Homes To Build Equity Fast Here is an example of how a mobile home builds equity fast. A house with a $100,000, 6%, 30-year mortgage loan gives you a payment of $599.60. $500 of the first payment will go to interest, $99.60 to principal. You built equity of $99.60. For right now we are ignoring appreciation.  A mobile home on land, with a $30,000, 8%, 10-year mortgage gives you a payment of $363.99. The higher interest rate is normal with mobiles. The shorter term is normal too, so you’ll own the home free-and-clear in 10 years instead of 30. The first month, $200 will go to interest, meaning $163.99 goes to principal. You built more equity in this scenario. A mobile home on land might appreciate more slowly than a “regular” house, but faster loan pay-down probably may cover this factor. Now, if you also chose to bank the difference in payments ($235.61 per month), you’d definitely be better off financially with the mobile home versus the more expensive home. However, this will not be true during times of fast appreciation. You can pay less per month and build more equity. Your real estate agent won’t tell you this, and don’t expect him to agree even after you explain it.  Other Advantages You can do what you like with the home when you own the land.  Mobile homes are cheap to maintain. The most expensive repair you’ll have in a mobile would be to replace the furnace should it die on you. Windows, plumbing, and doors are all cheaper on a mobile home. Property taxes, because they’re based on value, cost less. Insurance is less because you’re insuring less value. Just be sure you can get insurance before you buy. You may not be able to get insurance for some old mobiles in some areas. It is not a good idea to buy a mobile home if prices for houses are about the same as prices for a mobile home. You have to decide if you can make money investing in mobile homes. Every investment opportunity is not right for every investor. Take some time to decide if this is an area that can be profitable for you.

Lewie Ranieri is a famed mortgage dealer.  He learned his reputation at Salomon Brothers in the 1980’s.  His staff of mortgage traders was depicted in Michael Lewis’s Liar’s Poker.  Ranieri developed the concept of mortgage-backed securities that helped open the mortgage market to billions of dollars of newfound investors.

When the housing industry began to tumble, these mortgage-backed securities were vulnerable.  Many people blame Ranieri’s plan for the near collapse of many financial institutions and hundreds of billions of dollars lost by investors.

Since leaving Salomon Brothers, Ranieri has stayed active in the mortgage industry.  Unlike investors in his products, he has amassed quite a fortune.  Now, Ranieri has a plan that he hopes will serve as a model to save the homeowner.

His prototype is called the Selene Residential Mortgage Opportunity Fund.  The program’s mission is clearly stated.  The fund buys mortgages at a deep discount, works with homeowners to get them back paying a revised obligation and then resells the new mortgage at a profit. 

To encourage homeowners to get back on track, the Ranieri fund passes along a greatly reduced mortgage obligation.  The key component is Selene’s willingness to cut the loan balance.  Ranieri points out that this opportunity serves a higher purpose than government plans to lower payments by lowering interest rates.  The Selene Fund gives the homeowner unexpected equity at realistic values.

Thus far, Ranieri has raised $825 nm=million form foundations and corporations like the South Carolina Retirement Systems.  Ranieri hopes that the government will develop similar programs.  Ranieri realizes that his small fund will not solve the U.S. housing crisis.  He hopes that it will serve as a prototype for future programs.

Ranieri’s hand-on approach is refreshing and has given frustrated owners a ray of hope in an otherwise dismal environment.