http://www.NYMort.com/post/blog.htmNY Mortgage Home Loans Bloghttp://www.NYMort.com/post/making_the_move_easy_on_the_kids_23.htmMaking the Move Easy On the Kids Moving from one house to another is seldom easy and fun for adults, and it can be especially troubling for children. But if parents deal with their children’s concerns and needs thoughtfully, much of that distress and discomfort can be avoided. 1. The Children’s Perspective Children see moves differently than their parents do, and they benefit much less from the change in their comfortable routines – or so it seems at the time. Most often, a change in houses or communities heralds an important step forward for the adult members of the family. The family moves because Daddy or Mommy has a great new job, or a promotion in reward for years of hard work. They move because financial success has allowed the purchase of a bigger and nicer house in a more costly neighborhood, or because they can finally afford private bedrooms for each child and perhaps a pool in the back yard. 2. It’s not Just a House – It’s a Home Nowadays, mobile and hard-striving people typically live in a house for about five years and then move on as their careers or fortunes allow. That short time span is only a small percentage of the life-to-date for a 30- or 40-year-old, but the same five years is half the lifetime of a 10-year-old, and it includes almost all the years he or she can remember. To a parent, this house may only be the place they have lived recently. They think of it as a way station on the road of life. To kids, however, it may be the only home they have ever really known. This is their house, the place they feel safe and comfortable. A house is much more than a roof and walls to a child. It is the center of his or her world. A move threatens to take that sphere away and leave something totally strange in its place. The familiar friends, schools, shops and theaters, the streets, trees and parks – all will no longer exist for them. Everything will soon be strange, and they will live in someone else’s world. 3. How and When to Let Them Know The impact of a move on a typical child starts about the time he or she first hears that a parent has accepted a promotion, and often continues for about a year, until the new house becomes home, and memories of the previous place fade. It’s not usually necessary to announce this big change to children immediately, although they must hear about it from you before someone else breaks the news. Most teenagers see themselves as adult members of the family, and will probably feel they have been left out if they don’t hear everything from the first day. But it is probably not a good idea to tell toddlers and pre-schoolers until they have to know. There is no point in making them worry far in advance. Be sure to announce the move in a totally positive way. You might say how proud you are that Daddy’s company has chosen him out of many other employees to manage a new office in Cleveland. Talk about what a beautiful city Cleveland is, how good the schools are and how nice the people are. 4. Handling Concerns Tell truthful but very positive stories about how nice the new house will be. Ask them what the favorite things are in their lives now, and then try to make them happen in the new home. If the new home is too far away to allow a visit by the entire family after it has been selected, show the children pictures of it from every angle. Videotape it, if you can. Emphasize the positive views and be sure to include pictures of each child’s new room. Try to name the house with some romantic description, like “Oak Hill” for the big trees and the sloping lawn. Sugarcoating will help, but since children can quickly see the negative sides of most situations, every parent must plan to deal with their child’s worries, fears and sorrows. The children will lose friends they may have known all their lives. They will leave behind their sports teams, their clubs and their dancing teachers. They will have to start over in a new place, making friends, becoming accepted, and fitting into different groups. 5. Get Them Involved Younger children need protection from fear of the unknown. Listen carefully to their concerns, and respond quickly to allay their apprehensions. It would be normal, for instance, for a young child to worry that his or her toy box and shelf of stuffed animals might be left behind. Find those anxieties and correct them. Probably the best tactic is to get the children actively involved in the whole process. Don’t just promise to let them decorate their own rooms, for example. Take them to the paint store and let them bring home color swatches. Shop for bed spreads and towels and carpets. 6. Soften the Loss of Friends They must leave old friends behind, so find ways to make that parting almost pleasant. Plan a going-away party and let them invite their own guests. Take pictures of everyone and make a photo album. If a child is old enough, send him or her out with a roll of film in the camera and the assignment to photograph the views they will want to remember. Some relationships will be extremely difficult to break and these will demand careful, thoughtful, personalized planning by both parents. How, for instance, do you move a 17-year-old 1,000 miles from her steady boyfriend? Expect that your children may be even more distressed after the move than they were before it. The new house will not be beautiful the night after the moving van leaves, or for months after. The furniture won’t fit the rooms. The curtains won’t be up, and the floor will be covered with half-unpacked cartons. The children won’t know anyone at school and, if you move during the summer, they may have little opportunity to meet anyone their age. You may be faced with many more problems in your new community than they will, but remember that you can handle them more easily than they can. They will need your help, and you should plan to give them the support they need. After the move, give each of them a long distance telephone call allowance so they can keep in touch with the people back home who matter the most to them. Buy a stack of picture postcards that show positive views of your new community, and encourage them to write good news messages to the friends and relatives they left behind. 7. Help Them Get Started To make new friends, make sure the children don’t vegetate in front of the television. Get them outside, where neighbors pass by. Have them pass out fliers to do babysitting or car washing. Encourage them to participate in as many school activities as they can handle. Get them on sports teams and into clubs. If they – and you – aren’t making new friends fast enough, throw a housewarming party for yourselves and invite all the adults and children on the block. 8. Transitional Resources If serious emotional or attitudinal problems arise, however, help is usually available and probably should be sought. Ask a teacher for help. Consider professional counseling. Don’t let a serious problem slide. Remember that the newness will wear off. New friends will become old friends and best friends. This new house may become the family homestead your grandchildren will visit every holiday season. There will be discomforts, but in the long run, everything will work out fine. http://www.NYMort.com/post/7_reasons_to_own_a_home_478.htmSeven Different Reasons To Own Your Own Home You've probably seen lots of financial arguments about why you should own your own home rather than rent. This includes budgeting (no rent increases) and the tax savings you'll most likely have. Now we're going to give you some reasons you probably haven't heard. #1:Freedom to pursue other goals in life once the major goal of home ownership is achieved. Strange as it sounds, many of our first-time buyers have told us that once they bought the house, other things in their life started to fall into place. It's as if not owning took so much of their mental energy that other goals were not worked on until that big goal was reached. So buy a home and get on with your life! #2: A greater sense of belonging to the community. Once you own a home, you feel more attached to the city in which you live. You're more interested in what happens in town, to the roads, schools, and shopping areas. Some people even become involved in local politics. #3: A commitment to something, a sense of stability. Home ownership is an anchor, something that cannot be pulled out from under you. You'll never get a notice that you have to move. You're kids will never have to change schools. It gives you freedom to plan years ahead. #4: You can change things, a feeling of being in control. It's your home. You can add to it, remodel it, change the landscaping, you can do whatever projects you want. You have a feeling of being in control of something in your life. At work we don't always have control of what happens, but your home is your castle and you have dominion over it. You can see what you're building take shape before your eyes. #5: More control over the children than in an apartment complex In a neighborhood, kids usually play in the yards or go to friend's houses a few doors away. Our clients have told us that in an apartment complex they never knew where the kids were. They could be in any of hundreds of apartments, doing who knows what. In a home you get to know the neighbors and watch out for each other's kids. #6: Children do better in school and feel more secure. This one surprised us, but buyers have reported to us that their kids calmed down in school after they bought a house. We don't know why, but it seems to work that way. We remember a single mom watching her son play in the yard, making steps in the slope and building things. She didn't have to tell him to leave everything alone, like she did at the apartment complex. I guess kids feel the same need for control we adults do. #7: Time and money saved by not going to the Laundromat. A small point, but if you have kids, you know the value of this one. You gain a whole evening a week when you buy a house! The wash gets done in between other things, or while you're at work. What would you do with the extra evening you'll have? How about going out for dessert with your spouse with all those quarters? http://www.NYMort.com/post/how_banks_sell_reo_property_113.htm How Banks Sell REO The fact that a bank or loan company has the rights to a REO (Real Estate Owned) property and is trying to sell that property does not necessarily mean that the bank or loan company is going to sell the property at a bargain basement price. Banks and mortgage lenders work in different ways, but they generally have the same goals: To get the best price that is available in the current market, for the house that they are selling. Banks and Loan Companies see a REO as a sellable asset, but a sellable asset that is not being used to its full monetary potential whilst it is in their hands and on their balance sheet. Selling this asset will generate a certain amount of money for the bank or loan company, and hopefully the sale will also produce a profit, which the bank or loan company can then use to invest and make more money. Banks want to make money, and as is the nature of the finance world, they make this money buy investing monies received from peoples bank accounts, loans and the sale of any assets into the stock markets. A REO property that a bank owns represents a future, potential financial investment that could be generating a profit if it invested into the stock market. Whilst the house remains unsold the bank is not making any money from it and so it is in the banks or loan company’s best interest to sell this property. The reason that the bank wishes to use the sale of a property to invest into the stock markets is because shareholders, (who want to see an investment on the money that they have invested into the banks), normally own the bank or loan company. Maximizing the shareholders wealth is the main priority of the bank or loan company and so the more money that can be generated from the sale of a REO property the more cash the banks or loan companies can invest into the stock market and produce greater wealth for their shareholders. Because a bank or loan company wants to receive the best price possible from the sale of the REO property they have absolutely no intention of dumping the real estate cheaply. In fact, such cheap auctions by a bank or loan company would be in complete violation of their regulations: banks and loan companies have to demonstrate to a range of people, including auditors, investors and shareholders that they are attempting to get the best price possible. Due to the fact that banks want to sell the REO property as quickly as is possible, to release funds for further investment, as well as generate the best possible price to appease shareholders etc, they often have an entire department set up to manage their REO inventory and this department will be responsible for analyzing all bids received by the bank or loan company and generating an acceptable price for the property. The best option for the bank or loan company is to produce a quick bidding war that will increase the re-sale value of the REO property, as well as also generate a quick sale. To generate a bidding war banks offer various benefits and advantages to buying a REO property including offering the following advantages to the prospective buyers: Allowing the prospective buyer immediate access to the property for inspections, to examine the condition of the house Flexible rehab costs, interest, closing points, loan amount, etc. Extremely low down payment Price saving of up to 20% off market value of the property Removal of all taxes or liens attached to the property Once you (the prospective buyer) have been attracted to the property due to the benefits on offer by the bank or loan company, you will normally make the bank an offer on the property. The response of the bank will be to counter your offer (to demonstrate to investors, shareholders and auditors that they attempted to get the highest price possible). This counter-offer is standard for the industry and you should decide what you wish to do as a result of it. If the price is acceptable you can accept the offer, if the price is not acceptable to you then you can counter the bank or loan company’s counter-offer with one of your own and have their REO department asses its quality. Several individuals will probably review the counter-offer that you put to the bank or loan company before it is rejected or approved. The result of this action on the banks behalf will define how you react. If they approve the offer, then all is well and good. If they reject the offer you should look at whether you are comfortable paying more or whether you feel that the price they are asking is either above market value or unacceptable to you. If you chose to continue with the purchase once your offer is accepted, the bank or loan company will draw up a contract. It is essential for you to take a good look at the contract and maybe have your attorney go over it with you. http://www.NYMort.com/post/rapid_rescoring_658.htmA rapid rescore of your credit score is just what is sounds like. If your credit report contains inaccurate information it can harm your score. Once the erroneous information is identified and removed or corrected, a rapid rescore can be done. This may be able to raise your score much faster than the traditional way of waiting for credit bureaus to update their information. http://www.NYMort.com/post/self_employment_and_required_documents_806.htmThere are different types of self employment and different documents that are often required by lenders, for example: Sole Proprietor - Schedule C Personal Tax Return Partnership - Federal 1065 Partnership return. Personal income on K-1 and Schdeule E of 1040 forms. "C" Corporation - Form 1120 Corporation tax return. Personal income w-2s. "S" Corporation - Federal Tax return 1120S, K-1 from 1040s. LLC and LLP - 1120S or 1065 Trader - Schdeule D 1040 Investor - Schedule E 1040 http://www.NYMort.com/post/sources_of_down_payments_302.htmSome people use their 401K money for a down payment. Normally, when someone takes money out of their 401K, the government imposes a 10% penalty for early withdrawal. However, when it's used by a first-time homebuyer as a down payment, the government does not penalize the borrower for this transaction. This is one of the exceptions.http://www.NYMort.com/post/reo_738.htmReal Estate Owned. It is property which is in the possession of a lender as a result of foreclosure or forfeiture.http://www.NYMort.com/post/pros_and_cons_of_mortgage_insurance_718.htmIf you are looking at financing more than 80% of the value of your your home you will typically have two options, either pay mortgage insurance on the loan or take out a 2nd mortgage for the balance above 80%. Your credit history, and the estimated appreciation rate for the property will of course play a large part in determining which is the better option for you. Here are a few pros and cons of mortgage insurance that you should consider while making your decision.http://www.NYMort.com/post/rate_lock_141.htmWhen shopping for a mortgage many brokers and lenders will often quote you in good faith in regards to what kind of interest rate and mortgage program you qualify for. You will also be given the opportunity to "lock" in for an interest rate should you qualify.http://www.NYMort.com/post/what_is_my_credit_score_302.htmFinding out and knowing what your credit score is can be an important step to take when looking to refinance your home or to buy a new home. By knowing what your credit score is beforehand you can have a good idea as to what type of financing you may qualify for. If you have a credit score above 800, you are among the elite of consumers. If your score is above 700, then you still should be able to maintain good financing terms. If your score is 600-700 your risk factor to a lender starts to increase some and depending on what type of mortgage program you are looking for you may qualify for the best rates or you may qualify for a rate ever so slightly higher than the best for that program. Credit scores in the 500-600 range can really vary your financing across the board from what programs you may qualify for, to the interest rates you will be eligible for to the amount of money you may qualify for. Anything under 500 and you may have some serious problems finding someone to provide mortgage loan financing for you. Therefore, contact a trusted mortgage consultant to find out what your credit score is when you begin shopping for a mortgage or go to one of the 3 main credit bureaus websites and request a credit report with your credit score on your own to find out where you might stand for home loan financing with your credit score.http://www.NYMort.com/post/combining_your_1st_and_2nd_mortgages_878.htmOne way to simplify your monthly bills is to combine your first and second mortgages together into one loan.http://www.NYMort.com/post/selling_my_home_quickly_353.htmThere are several ways to help sell your home quickly even in a difficult market. One way is to stage the home. It is worth the extra expense of paying for a professional to stage your home. Another way to sell your home quickly is to sell it 1% lower then the market value. Often homes don't sell because homeowners simply overprice the house.http://www.NYMort.com/post/frequently_asked_questions_about_loans_619.htmWill I need an appraisal? Most loan programs will require a new appraisal. Sometimes, with good credit borrowers, the bank will waive the appraisal requirement but usually, the bank will want a new appraisal done to get a current value estimate.http://www.NYMort.com/post/comparing_loan_offers_612.htmI've received various offers from different lenders. Why is there such a difference between all of them? What should I look for to help me select the best loan for me?http://www.NYMort.com/post/how_to_read_your_credit_report_423.htmOne of the sections on your credit report will contain all the inquiries made within the last 90 days to a year. You'll want to carefully look at these inquiries and make sure they are accurate. Too many inquiries can lower your credit score.http://www.NYMort.com/post/home_improvement_96.htmIncrease home value vs marketabilty When contemplating a home improvement project it is important to understand the difference between improving the marketablity of your home versus actually increasing the value of your home. While any improvement to your home inexpensive or expensive can increase the likelyhood of a faster sale, they do not necessarily increase the value of your home. The actual value of your home is determined by an appraisal. The appraisal takes many things into consideration when determining the value of your home. Some important factors are condition, age, square footage, number of bedrooms and baths and location. Then he/she compares your home to other like properties in the surrounding area that have sold.http://www.NYMort.com/post/should_i_use_consumer_credit_counseling_884.htmMany homeowners consider using a service such as consumer credit counseling. However there are some serious pitfalls that need to be discussed and explored prior to signing up. One such pitfall is that some lenders treat the turning over of your debt to a service the same as filing a bankruptcy. So when you try to qualify you find you have hurt yourself while trying to help yourself.http://www.NYMort.com/post/mortgage_myths_547.htmThere are a lot of myths and superstitions surrounding the world of property finance. 1) "My neighbor got 6.25% a month ago when he refinanced. I should be able to get it as well." Wrong, wrong, wrong. The amount of factors that go into a loan for a borrower are numerous. Loan program, credit score, verification of income, cash reserves, mortgage history, and even the date you apply for your loan can all push either this way or that way on what interest rate you may be eligible for.http://www.NYMort.com/post/what_should_i_be_careful_of_when_buying_a_home_241.htmWhen you are buying a home you should use caution before you sign a purchase agreement. Make sure you read over the entire purchase agreement to read exactly what is listed throughout and to see how exactly the wording reads for everything. Don't let a Realtor tell you that it is a standard purchase agreement and they are all the same. Sometimes the purchase agreement may require you to pay for the buyer and sellers title fees. Sometimes the purchase agreement may state that you will not receive the keys to the home for many days after you have closed on the home. There are many other items that the purchase agreement may or may not state that you should be very aware of. Consult your mortgage professional or possibly even an attorney to review the purchase agreement so that you know exactly what you should expect.http://www.NYMort.com/post/how_to_choose_a_mortgage_company_259.htmWith the large economic boom in the real estate and mortgage industry, great opportunity has visited many homeowners and home buyers in their quest to find low rates and good programs. Another effect that this has caused is the abundance of mortgage companies; old and new, that there are to choose from. So, just how do you decide if you should go with a local bank, broker, or possibly even an out of state mortgage company?http://www.NYMort.com/post/location_for_closing_721.htmClosing can take place at a number of different locations depending on the situation. Some states, like Delaware for example, require that an attorney conduct closing and handle the title work on any real estate transaction. In this scenario closing will most likely take place at the attorney's office. There is the rare case where an attorney will do closing out of their office, however there is usually a higher fee associated with this.http://www.NYMort.com/post/it_still_makes_sense_to_buy_vs_rent_8.htmNearly a full third of households are still renting...but if you are one of them, you could be paying a hefty price. Additionally, the children of the baby boomer generation are close to or at the home buying age, but these "echo boomers" could mistakenly decide to put off the purchase of a home because of all the noise about a "bubble" in home prices. Is there a "bubble"? The simple answer is "no". Even if interest rates move a bit higher, it won't be enough to cause a nationwide slide in home prices. The key to a healthy housing market is the job market. If the payment on a new home might be slightly higher due to increased interest rates, it generally won't stop someone from purchasing the home of their dreams...but if they feel their job is in jeopardy, it might be enough to stop them from making a move. So with the currently low levels of unemployment and the beefy gains in job creations, it looks like the housing market will remain vibrant. Although it will be difficult to sustain the double-digit gains that much of the country has seen, price declines are highly unlikely. Expect a more moderate rate of appreciation, perhaps closer to the historical 6-7% range, which is still very good. It is important to note that housing tends to be localized. So if the job market in your area is weak, housing prices could under perform the rest of the country. But this talk of a housing bubble has been going on for a few years now, and those who were unfortunately victimized by continuing to rent instead of purchasing a home are painfully mulling over their missed opportunity. But is it too late? Even with the more moderate levels of appreciation expected…procrastinating on that home purchase could cost you a bundle. Let's look at an example. If you are paying rent at $1,500 per month and your landlord increases your payment by a modest 5% each year, you would wind up paying just about $100,000 over a 5-year period! Worse yet, after forking over $100,000, you still would have nothing to show for it. And speaking of having nothing to show for it - how about any improvements you might make to a rental property? It's not uncommon for renters to freshen up the paint, install new light fixtures or plant some nice flowers outside. But guess what…all your efforts, labor and the benefit of that improvement belong to the landlord, not to you. With the extensive variety of programs to help buyers obtain a mortgage with little to even zero down payment, the very same money could have been used towards home ownership. Even using a standard 30-year fixed program, a mortgage of $300,000 could be obtained with a total monthly mortgage payment - including property taxes and insurance - of around $2,200. Assuming a 25% tax bracket, this would be equivalent to the average amount spent on rent during the same period after your tax benefit. And the benefits of home ownership are quite considerable. Because the mortgage is being paid down each month, equity is being built. After 5-years, the $300,000 mortgage would be reduced to $279,000, adding $21,000 to your net worth. Home appreciation can add an even bigger chunk. If your home appreciates at a modest 5% per year, the value of a $300,000 home would increase to $383,000 after 5-years. Subtract the remaining mortgage of $279,000 and you have a whopping $104,000 of additional net worth! Even if the appreciation level were at 3.5% or half the historical norm, the result would be $77,000 of additional net worth. But if laying out the initial increase in monthly payment and having to wait for your tax benefit to show up next April is a tough nut to crack, the IRS wants to help. Instead of waiting to file for the tax benefits derived from your new home purchase, you can simply adjust the amount of your withholding. This allows you to have less tax withheld from each paycheck so you can handle the new mortgage payment more comfortably throughout the year. In essence, you are taking your tax refund as you go instead of letting Uncle Sam hold it all year, interest free. Visit www.irs.gov and use the IRS withholding calculator. This very handy tool can quickly show you the effect a change in withholding will do to your net paycheck. Remember to balance this with the expected refund and it is always a good idea to check with your tax advisor. Don't be victimized by the bubble hype. Buying a home is a big step, but it is almost always one in the right direction.