The South NJ RE Info Blog

Terry Iwaniw
REALTOR Associate
ReSales & Investment Realty, LLC
Off: 856-795-3111 x263
Cell: 609-417-1086
http://www.sellmysnjhome.com
http://snjrealestate.ning.com
http://www.snewjerseyhomes.com
Connect on Facebook - http://profile.to/terryiwaniw

If you are thinking about the home you want in the coming year, this is a good time to compile your wish list, whether you're looking to Santa or not.

After writing your dreams and wishes, your list of must-haves comes next.

Give yourself the gift of time to create the lists. You can enjoy that time whenever a new idea comes to you, whether it's in the middle of the day or in the middle of watching NCIS on television.

Builders of up-scale homes say a state-of-the-art kitchen, walk-in closets and whirlpool tubs rank as the three most-coveted elements Americans over age 25 want in their dream homes. The survey of builders was made by market-research firm GFK Roper.

Your own list will be a lot longer as your customize it according to how your family lives. Fortunately, most of your needs today can be met by an existing home, and many of your wishes can be fulfilled at the same time.

A dream home doesn't have to be a palace, but with home prices at their current levels, dreamers have the opportunity to buy more than they could in earlier times.

A few things parents may want to include in their list:

* A separate laundry room.

* A mud room with a half bath attached for washing up.

* Extra storage space for toys and sports equipment.

* Large kitchen with space for family dining.

* Fenced yard to keep small kids and big dogs contained.

No home will have them all, but many will have other amenities you will like even better.

If you're a baby boomer or beyond, that home could be your reward for a lifetime of work service to others.

Terry Iwaniw
REALTOR Associate
ReSales & Investment Realty, LLC
Off: 856-795-3111 x263
Cell: 609-417-1086
http://www.sellmysnjhome.com
http://snjrealestate.ning.com
http://www.snewjerseyhomes.com
Connect on Facebook - http://profile.to/terryiwaniw

I have prospective buyers asking me if FHA mortgages are a good deal these days, or are they strictly for lower-income home buyers? 

In the past, most Federal Housing Administration (FHA) loans were made to lower-income borrowers. In fact, that is why FHA was established. In the 1930s, a working person would have to save 50 percent of the value of a house before being able to get a mortgage. The FHA changed that with programs that guaranteed loans made to people with lower down payments.

FHA itself does not actually lend money or set interest rates. Instead, it guarantees loans, insuring that private lenders are protected against defaults on loans. Today the FHA has a variety of loan guarantee programs for first-time borrowers, reverse mortgages, and refinances. The percentage of FHA loans in the mortgage market is about 25 percent.

In fact, while FHA loans still require smaller down payments and often have low interest rates, not all FHA borrowers are low income. In areas where real estate is expensive, borrowers can take FHA mortgages for as much as $729,750 but the limits vary from place-to-place. I can discuss FHA limits and requirements with you if you think such a loan would be good for you.

There are a lot of reasons people look to FHA loans. Today, if you want to make a down payment of less than 10 percent, you almost certainly will have to do an FHA loan. Borrowers can get a home mortgage for as little as 3.5 percent down.

As a government-insured loan, an FHA mortgage has easier credit qualifying guidelines than most lenders. Today, nearly all lenders require a credit score of 700 or more to qualify for a conventional mortgage. FHA credit score requirements are slightly lower.

Nonetheless, there is no guarantee that an FHA mortgage is a better deal than a conventional one. As always, shop around and deal with a reputable lender.

If you are thinking of buying a home, you might be confused about the many issues in the news from mortgage rates to mortgage bills in Congress.

But the fundamentals of buying a home really haven't changed and, in fact, there are new incentives on the horizon that should make home buying more attractive than ever.

There are plenty of homes on the market in every price range and if you want one of them, you need only do what generations of people have done. You just have to pay attention to these basics:

First, cultivate good credit by prudent living. Pay your bills and pay them on time. Use credit sparingly.  If you do this, you'll earn a good credit score, which is crucial to getting a good interest rate. Research shows that many consumers believe that they have to have a high income to have a high credit score, but that's not true. In fact, income is irrelevant to your credit score. Your credit score is a rating based on how well you live up to your obligations, pay your bills and use your credit.

Second, save money for a down payment. In the current climate, most lenders will ask you to bring some cash to the table in a mortgage deal. 

Third, find a house you love but can also afford. One path to financial freedom is to buy a modest house and build equity. When you decide to move up, you can sell your house and take a large chunk of the money from the sale and apply it to your new home. Your payment is lower while you live better. It's the good, always-in-fashion way to live.