Searching Online For a Real Estate Agent Can Backfire

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In today’s technology-centric age, most of the world relies on the Internet as a primary source of information and it is only natural that as one begins a home search, particularly in an area away from their current location, the first place they turn is online. But unless you are careful you could end up with a less-than-perfect match.

Buying a home is the largest financial transaction in a lifetime for most people and you need someone that is reliable, dependable, experienced, and most importantly someone that you connect with. These days, there is a growing trend among real estate agents to pay for online leads that connect them with buyers that are looking for homes. Those agents then market themselves to these buyers and regardless of their skills or specialties unsuspecting buyers often end up with agents that might not be the best pick for them.

To avoid all this, the next time you hear of someone in your immediate circle that is looking to buy a home, let us know. We have a wide network of business associates, colleagues and fellow top-producing agents around the country. We’ll introduce you to someone that will work well in your home buying endeavor.

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As always, we invite you to contact us for any real estate inquires you may have. It’s a great time to sell your home now, with inventory levels continuously dwindling and an increasingly high demand for new homes. Buyers are still able to lock in very low interest rates that have yet to be rivaled in housing market history. We look forward to hearing from you!

Make a Great Real Estate Investment in Cincinnati

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If you are looking to find a fantastic real estate investment in the hottest spots of Cincinnati, then the place to start your search is with duplexes and four-plexes. The most desirable neighbors throughout our city offer some extremely high quality multi-family homes. If you have a child who is a young adult or a friend looking to move into a hip Cincinnati neighborhood but cannot afford to have such a large housing expense every month, then a multi-family home is a great place to start. By purchasing a duplex or four-plex, you are given the opportunity to bring in additional revenue to offset the mortgage; as an owner occupant you can have someone else writing the check for you. You can also free up some additional tax benefits – talk to your CPA to get some more details on this.

I have experience in this sort of investment; a multi-family home was one of the best purchases I have ever made! So, if you or someone you know is interested in a duplex or four-plex property in one of our beautiful Cincinnati neighborhoods, please give me a call at (513) 766.0656.

Get Debt FREE and Raise Your Credit Score!

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The only way to raise a credit score is to pay off your debt or at least reduce it to an acceptable level! I recommend paying off high interest rate  credit card debt first.They can suck the life out of your finances! As for those, "magic cure" credit repair commercials you hear and see promising a quick fix, their scam is even greater than high interest rate scam your credit card company is charging you!

What steps do you need to take to build your credit score to the highest level possible? How can you secure a mortgage with a lower interest rate? Use my common sense guidelines provided below to get rid of the debts that have reeked havoc on your chances for a lower-interest mortgage on your dream home.

1.) Pay Your Bills on Time – All the Time!
I know, I know – this isn’t always easy. But, lenders of all kinds look for reliability on your part. Since loaning money is a risk for them, they look for signs that you have a reliable income and the discipline to pay your bills over time. When they see those signs, they say to themselves, “Hmmm, this person looks like a good risk to me; therefore, he or she deserves a lower interest rate.”

2.)  Do Not – I Repeat! – Do Not Open Unnecessary Credit Cards!
People sometimes open credit card accounts in order to increase their available credit. Absolutely avoid this temptation! It’s simply too darned easy to charge for items you don’t really need, and, before you know it, you’re back in debt or have increased it to an unreasonable degree.

3.) Budget, Budget, Budget!
Financially, this is possibly the most “unsexy” task there is, and yet it’s the most vital and important one you can possibly undertake! YOU need to figure out where you stand financially. Budgeting will allow you to get rid of debt, improve your credit score, and shape a low interest rate financial future for you!

4.) How Much Debt is Too Much?
Here’s the first question to ask yourself in terms of budgeting: How much debt is too much?
Actually, there’s a standard financial formula that allows you to answer that question. This formula is called the debt to income ratio, and what it does is measure your net monthly income against your debt.

Here’s an example:
"George” has a net monthly income of $2000 and his monthly debt payments are $500.
So, to get his debt-to-income ratio, George divides $500 by $2000 and gets this ratio:
500÷2000 =.25 (25%)
  
Is this a good ratio?
Well, financial experts generally agree that debt expenses should be 25% or less of your income. George’s ratio is reasonable but could be better.So, what’s the ratio of your debt to your income? Figure that out by taking the next step.

5.) Calculate Your Debt-to-Income Ratio
You can answer that question by completing the following tasks:

Task 1: Analyze your bills from the last month. Add up all the fixed expense items (rent, mortgage, car payments, child support, loan payments, etc.)

Task 2: Review your credit card bills and add up the minimum payments owed on each card.

Task 3: Figure out your monthly take-home pay (net salary).

Task 4: Divide your monthly fixed expenses by your monthly income to get your debt-to-income ratio.

What percentage did you get? If it’s 25% or greater, then it’s definitely time to budget in order to reduce or eliminate your debt.

 I’d be happy to discuss some more in-depth  budgeting tips and provide you with information on mortgages at the same time!

Understanding the Difference Municipal Tax vs. Township Tax in the Greater Cincinnati Area

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Most homeowners don’t realize this but you pay different taxes based on where you live and work. So to help you understand the difference between the various taxes you pay accordingly, I wanted to share some examples with you. That way the next time you move you can consult with me and get some additional insight as to what might save you money throughout the year, every year.

Sycamore, Anderson, Simms Township Residents Spared Additional Taxes

If you have established your residence in these townships you will not have to pay an additional city tax for living in the area. Despite working in another area – you are still not charged additional taxes. For example, if living in Blue Ash and working in Blue Ash you are paying a 1% Blue Ash tax. If you live in Blue Ash and work in Downtown, you are paying 2.1%.

Similarly, if you live in Anderson Township and you work in Anderson Township as well, you would not be responsible for any additional municipal taxes – rather you are simply paying federal and state taxes.

Working in a Municipality Will Not Eliminate Taxes

If you are working in a municipality but living Downtown you would still be responsible for the 2.1% tax since your place of work is located in a tax area that is subject to city tax.
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If you are considering a new home and have the flexibility to choose a township, it might be a good idea to consider one of these locales and consequently save money on taxes. This is particularly ideal for self-employed people, business owners or telecommuters that are looking to move.

I look forward to helping you with this or any of your real estate needs and welcome your inquires. Call me today!

Home Warranties Offer Peace of Mind to Existing Homeowners and Buyers Alike

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Most people have heard of home warranties being purchased at the time of sale but did you know that you could also obtain a consumer-direct home warranty? In fact, despite costing just a little bit more the benefits far outweigh the added cost over and beyond the standard buyer or seller policy. In the “few hundred dollar” range, these policies provide protection against major problems with appliances, systems or both – depending on the policy type.

Of course, as is with many insurance products, there are the typical policy exclusions so when you go to inquire about one of these products be sure to request a copy of all exclusions to understand exactly what coverage you will be getting.

If you would like to learn more about obtaining third-party underwritten insurance policies to cover your appliances and systems – we invite you to contact us today and we’ll be happy to share some of our recommended vendors. Since the insurance companies are part of a profit-generating industry, here are some tips for dealing with them:

1. Call during off-peak times. When filing a claim, set aside about a half hour to complete the telephone procedure and more if calling during the morning, lunchtime or late afternoon.

2. Keep track of everything. Document the name of everyone you speak with, the time and dates of each time called and the exact nature of the conversations.

3. If you feel you are not getting anything done or that progress is slow with your claim, ask to speak to the manager in charge when you call.

4. Choose to submit your claim on the telephone rather than via email for a faster response.

5. Keep your cool. If you end up dealing with an unresponsive or worse, rude customer service person – try to be calm but remain consistent.

6. Get creative when you need additional help. District managers of home warranty companies make themselves more accessible to real estate agents so if you need extra help, contact your agent.

Contractual Occupancy; When Can I Move In to My New Home?

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When we agents work on getting a contract together, one of the most important things to discuss is occupancy. When will the keys exchange hands? And believe it or not, the answer varies. Up until a while ago, in our area it was typical for us to offer a 30-day occupancy period after the closing. What that means is that the seller had about a month to move out and vacate the premises after closing.

However these days, the standard has changed. Now when you have a contract between buyer and seller the agreed upon date of possession for the buyer is usually the same as closing. In fact, relocation companies go as far as not even to allow their sellers to accept a contract unless occupancy is given at closing.

For buyers, clearly the last thing you want to do is to complete the process, own the property and be paying insurance on it – only to be restricted from accessing it for 30 days. Particularly since the buyer is financially responsible for the property from the moment closing is completed, immediate occupancy makes good sense.

So as you are preparing to accept an offer on your contract, or if you are making an offer on a property – be sure to address the date of occupancy and confirm with your agent that closing date possession for the buyer is the standard way to go.
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As always, please do not hesitate to contact me for further clarification on this or anything else you’d like to know about. And if you are looking to buy, sell or invest in a property – I look forward to helping you make your real estate goals a reality!

What Are Reverse Mortgages and What Are Their Benefits?

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As the name suggests, “reverse” mortgages work exactly the opposite from a "regular" mortgage. Instead of you making monthly payments to a lender, the lender pays you. And, generally speaking, you don’t have to repay it for as long as you live in your home. So, what does the lender get out of this bargain? Well, in return, he or she holds part or all of your home's equity.

Reverse Mortgage Advantages 

Home owners who are “house rich, but cash poor” can be beneficiaries of this type of mortgage. It allows them to stay in their homes and still meet their financial obligations. In addition, the proceeds of the loan are tax-free. Also, there are no minimum income requirements, and, for most reverse mortgages, the money can be used for any purpose you choose. 

Reverse Mortgage Disadvantages
Below is a list of the major disadvantages of such loans: 

1.) Reverse mortgages tend to be more costly than traditional loans because they are “rising-debt” loans. This means that the interest is added to the principal loan balance each month. Therefore, the total amount of interest owed increases significantly with time as the interest compounds. 

2.) Reverse mortgages also use up all or some of the equity in a home. This fact means that fewer assets are left for the homeowner and the heirs. 

3.) Lenders generally charge origination fees and closing costs; some charge servicing fees. It’s up to the individual lender as to how much the fees and costs are. 

4.) Interest on reverse mortgages isn't deductible on income tax returns until the loan is paid off in part or whole. 

5.) Because you retain title to your home, you remain responsible for taxes, insurance, fuel, maintenance, etc. 

6.) Scams are sometimes run by unethical lenders. Never accept a deal with door-to-door/home solicitation lenders. Reputable lenders have no need to go door-to-door in search of loans.

From all the disadvantages listed above, you can see that you need to understand exactly how they work and what responsibilities you’ll take on with such a loan. Below, I’ve provided you with basic knowledge on reverse mortgages so you have a foundation upon which to consider them. 

Types of Reverse Mortgages 

Reverse mortgages have several different forms: 

1.) Federally insured Home Equity Conversion Mortgages("HECM"). These are administered by the Department of Housing and Urban Development ("HUD") 

2.) Single-purpose reverse mortgages. These are usually offered by state or local government agencies for a specific reason 

3.) Proprietary reverse mortgages. These are offered by banks, mortgage companies, and other private lenders and backed by the companies that develop them.

Qualifying Factors 

You must be at least 62 years of age and have paid off all or most of your home mortgage. In general, income is not a factor, and no medical tests or medical histories are required. If you seek an HECM, you also must receive free mortgage counseling from an independent government-approved "housing agency." This may also be true of financial institutions offering proprietary reverse mortgages.

Loan Amount 

The mortgage loan amount depends on:

- Your age
- The equity in your home
- The value of your home
- The interest rate

If you choose an HECM, federal law limits the maximum amount that can be paid out. There are several ways in which you can be paid - in a lump sum, through monthly advances, through a line of credit, or a combination of all three. 

Recommendation

As with any mortgage, shop around and compare terms of reverse mortgages. In particular, check: 

1.) Annual percentage rate (APR). This is the yearly cost of credit 

2.) Type of interest rate. Check to see if it’s a fixed rate or an adjustable rate. 

3.) Number of points (fees paid to the lender for the loan) and other closing costs. In some cases, this can be costly so check closely.

4.) Total amount loan cost ("TALC") rates. The TALC rate is the projected annual average cost of a reverse mortgage, including all itemized costs. TALC shows what the single all-inclusive interest rate would be if the lender could charge only interest and no fees or other costs. More about it here!

5.) Payment terms, including acceleration clauses. These terms state when the lender can declare the entire loan due immediately. 

Remember: Under the federal Truth in Lending Act, lenders must disclose these terms and other information before you sign the loan. Also, on plans with adjustable rates, they must provide you with specific information about the variable rate feature. And, on plans with credit lines, they must inform you about appraisal or credit report charges, attorney's fees, or any other costs associated with opening and using the account. Make sure you understand these terms and costs. 

Finally, in most cases, you have at least three business days after signing a reverse mortgage contract to cancel it in writing! Want to learn more about reverse mortgages or any other kind of mortgage? Contact me immediately!