Renters Have Much to Gain by Pursuing Home Ownership
 

Melanie Dages, Senior Loan Officer

CITY, ST – Buying a home vs. renting is a big decision that takes careful consideration, as most mortgage consultants will agree. But the rewards of home ownership are great. For many years, purchasing real estate has been considered an extremely profitable investment. It is an achievement that offers a sense of pride, financial stability and potential tax advantages.

Yes, there are certain responsibilities associated with owning a home. Landlords will often argue the benefits of renting, and for obvious reason. If you are renting, you’re helping them make their mortgage payment.

The numbers are staggering if you look at it this way. If you are paying $1,000 per month for an apartment, and you know your rent will increase 5% every year, then over the next five years you will pay your landlord $66,309. If you are currently renting a house, you may be paying much more than that each month. Either way, you gain no equity by shelling out this monthly housing expense and you certainly won’t benefit when the property value goes up!

However, if you were to purchase your own home or condominium, you would be well on your way toward building equity within that same five-year period. By choosing a fixed-rate loan program, you can have the comfort of knowing that your monthly mortgage payment will never go up. In fact, you would have the option of refinancing to a lower interest rate at some point in the future should interest rates drop, and this would cause your monthly mortgage commitment to go down.

In addition to building equity, there are tax advantages that come into play with home ownership. Depending on your tax bracket, owning a home is often less expensive than renting after taxes. Interest payments on a mortgage below $1 million are tax-deductible, and your mortgage consultant should help you evaluate the tax advantages of various loan scenarios, and share this information with your tax consultant to glean feedback on your behalf.

To find the loan program that is right for you, your mortgage consultant will need to evaluate your monthly household income, current assets and savings, as well as any monthly obligations you may have for credit card payments, car payments, child support, etc. These prequalification factors, along with the report of your credit score, will determine how much house you can afford and what interest rate you will pay for financing. It is also important to let your mortgage consultant know what your future goals are, because this will help narrow down which loan option is the best fit for your long-term needs.

There are many different types of loan programs available, including “low” and “no” down payment mortgage programs. These types of programs require the borrower to provide less than 3 percent of the loan amount as down payment. FHA lenders rule that the mortgage payment, including principal, interest, taxes and insurance (PITI) should not exceed 31  percent of your gross income, and the PITI plus other long-term debt (car payments, etc.) should not exceed 43 percent of your gross income.

Housing is an expense that takes a big bite out of the monthly budget. If you are a renter and feel that “home” is more than just someplace to hang your hat, think about the advantages of purchasing real estate. It may be time to take the step into building your personal net worth as a home owner.

Melanie A Dages is affiliated with Southern Fidelity Mortgage #442, a Licensed Loan Officer, Mortgage Lending Division, Nevada . [Loan Officer Last Name] Melanie A Dages Home Buyer’s Seminars which are open to the public on the first Tuesday of each month at 6585 High Street, Las Vegas,  NV  89113 from 7:00 p.m. to 8:30 p.m. Seating is limited. To reserve your seat at the next event, call 702-468-8737 to RSVP and obtain a free copy of Melanie Dages’ Home Buyer Handbook.

SUBMITTED BY:

Melanie A Dages 

MLD NV  #43006

702-468-8737  Cell

702-228-2889  Office

702-442-0732  Fax

Melanie.dages@yahoo.com

Melanie Dages

Short selling your home is not a decision you should make lightly. It is often a difficult and long process. If you are successful, the difference between what you sell the house for and what you owe on the house may be forgiven. You’ll also avoid a foreclosure on your record.

Step 1 – Get Educated

 You need to know your options when it comes to your home. If you want to keep your house, but can’t make the payments and you owe more than your home is worth, you may look into filing bankruptcy. This will stay the foreclosure process (not forever) and may allow you to stay in your home and repay your lender under different terms. Deed in Lieu If you owe more than the home is worth, this is not an option for you. Deed in Lieu means that you give up the house to the bank and walk away. ie, you give up the deed instead of facing foreclosure. Short Sale If you owe more than your home is worth, and don’t want to declare bankruptcy or face foreclosure, then a short sale of your home is the best option. A short sale does have potential tax implications.

Step 2 – Get Some Help

This is probably the biggest tip I would give to people who want to sell their home in a short sale.                                                                                           FIND AN EXPERIENCED REAL ESTATE AGENT WHO HAS DONE A SHORT SALE BEFORE.    Your real estate agent will be able to deal and negotiate with the mortgage company(ies) on your behalf. An experienced short sale agent will give you a much better chance of successfully short selling your home. Because there is often so many different entities involved in a mortgage (1st mortgage, 2nd mortgage, the investor on the loan, etc) you really don’t want to do this on your own, with no experience. Plus, you’ll never have any out of pocket expenses to pay an agent, as everything is essentially paid by the lender. WARNING! Just because an agent says they specialize in “short sales” does not mean they have actually successfully done one! There are many classes agents attend regarding short sales, but nothing compares to real world experience.

Step 3 – Get Started Now

The longer you wait to get started with the short sale process the less chance you have of success. Every state is different with their foreclosure process. You need to decide quickly to start the short sale process if you’re getting behind on your payments, or have already received a notice of default.

Step 4 – Follow Instructions Exactly

An experienced short sale agent will tell you what you need to do to get the house ready to sell. Don’t get too hung up about the price. If the agent wants to set a low price on the house, there is a reason behind that.

If the house is priced correctly you could potentially get an offer very quickly. You need a buyer that is willing to stick around for a long closing or changes to the agreement. In can take upwards of  4 to 6 months from when you get the offer to when the closing takes place. Don’t get hung up about the price, your focus should be on getting the house sold.

Step 5 – Know The Tax Implications

Congress  passed and the president signed a law that likely releases you from any tax implications of a short sale.

Talk to a qualified tax attorney or CPA about this for your particular situation. Your real estate agent should know about this! A good agent will have a quality referral for you to handle the tax implications of your short sale.

Step 6 – Prepare to move quickly

Because your closing date may not be set in stone, you need to be prepared to leave your home quickly if needed. You do not want to end up living in your office or some one else’s home for a length of time.

A minimalist lifestyle is nothing to be ashamed of; in fact it should be venerated. Your possessions are just inanimate things; it’s the relationships in your life that really matter.   Sell anything you don’t need or haven’t used in the last 6 months on craigslist! The less you have to deal with on moving day the better.

Step 7 – Prepare yourself emotionally

If you are already in default, or have a foreclosure pending, this whole scenario and process of trying to short sell your home can be very emotionally draining.

You will receive solicitations from everyone and their mother. You may have people stop by your home while you are still there. It can be a very difficult process.

Make sure you have people in your life to talk to about your situation. You will need a support network to help through this time in your life. It will pass. And you are being proactive in seeking a short sale of your home. You are taking the right steps, and in time, everything will work out. I can’t promise it will be easy, but you will make it!

Melanie Dages

Senior Loan Officer   #43006

Southern Fidelity Mortgage  #442 

6585 High Street

Las Vegas,  NV  89113

Cell      702-468-8737

Fax      702-442-0732

www.GoSouthernFidelity.com/MelanieDages

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Article By Melanie Dages

A little bit about myself, my name is Melanie Dages.  I am a Senior Loan Officer with Southern Fidelity Mortgage in Las Vegas, Nevada.  I have 6 years mortgage experience and 19 years personal real estate investing experience.  I have experience with FHA, VA, Conventional Loans, and Commercial Loans.   I find great satisfaction in helping each of my clients with their unique and individual needs.   I am able to choose from many loan programs to find the perfect fit for each client
I am dedicated and committed to building my Mortgage Business one closing at a time and to provide all borrowers with quality customer service.  My goal is to take each client through the process of getting a loan as seamlessly as possible, allowing them to walk away feeling that they were working with a caring professional. 
I provide 100% availability and 100% accountability to my clients and to my business partners.  I am committed and dedicated to providing unparalleled service and results.   Focusing on the rapid changes to market conditions that affect the Mortgage and Real Estate industry I am able to share this information with my business partners and my clients.

On a personal level, I have been married for 30 years to a wonderful man.  We have 2 Sons who have added wonderful daughter-in-laws to our family. They have given us 4 terrific grandchildren.
We have been very blessed in family and in business,
As always we are thankful.

Melanie Dages

Well I am sure just like me, others are wondering if the $8000.00 tax credit will be extended or not?   This is the newest information on the possible extension.

There is still plenty of bipartisan support in Congress for the extension.  Treasury Secretary Tim Geithner and Housing Secretary Shaun Donovan said that the Obama Administration wants the credit extended for a limited time.

“There is bipartisan compromise to extend the credit through spring and expand it to existing homeowners who are stepping up to a different home,” financial policy analyst Jaret Seilberg wrote in a research note for Concept Capital’s Research Group.

 This is the latest understanding of what is under discussion for the credit.  First time homebuyers will be eligible for $8000.00 and homeowners who would like to trade up to a bigger primary home and who have lived in their current home for five years will be eligible for $6500.00. 

 To qualify for the full credit homebuyers must have an adjusted gross income of less than $125,000.00 ($225,000.00 for married couples filing jointly).

 Another aspect would be that the credit would only apply to homes sold for $800,000.00 or less.

 Purchase contracts must be signed by April 30, 2010 and the purchases must close by June 30, 2010 for the buyer to qualify for the credit.

 In support of the credit many believe that the credit has already boosted existing home sales and that by extending the credit we would see more sales, the housing prices would stabilize and we would see more jobs generated.

 For those that do not support the credit many believe that the majority of homebuyers who would or have benefited from the credit would have bought their homes without it.

 For any of you that have comments regarding the credit please feel free to post your comments.

Melanie Dages

MLD NV #43006

702-468-8737

http://www.integrity-home-loans.com/

Article By Melanie Dages

The Senate has reached an agreement to extend the soon-to-expire $8,000 tax credit for first-time homebuyers,    said Christopher Dodd on Tuesday October 27th.    This tax credit extension is going to be part of a package that would extend the unemployment benefits.  The measures to be included in the package are still under negotiation and yet to be released.

Follow this link for an up to date news clip……http://www.cnbc.com/id/15840232?video=1311449402&play=1

I am going to refer back to my past blogs…..Las Vegas needs to hear that there is an extension to the tax credit.    As I have said many times in the past, I am optimistic about Las Vegas and our housing market. 

I have Hope that buyers who were afraid that they couldn’t get their loans closed before November 3o, 2009 will get out and put offers in on homes and that those offers will be accepted….I have Hope.

Melanie Dages

Article By Melanie Dages

1.  NEW FEDERAL TAX CREDIT.

     First-time homebuyers may qualify for up to $8000.00 and repeat buyers up to $6500.00; plus income limits have been raised.   For sales occurring after November 6, 2009, the Act establishes income limits of $125,000 for single taxpayers and $225,000 for married couples filing joint returns.   The income limits for sales occurring on or after January 1, 2009 and on or before November 6, 2009, are $75,000 for single taxpayers and $150,000 for married taxpayers filing joint returns.

2.    LOW INTEREST RATES.

       Rates remain at near-record lows; you can lock in your payment at an amount that fits your budget. 

3.    UNBEATABLE INVESTMENT.

       Even when the markets are down, over the long term home prices still appreciate more than the stock market.

4.     AVAILABLE LOANS.

       Lenders are still eager to make loans to borrowers with good credit.

5.     GREAT SELECTION

        With so many home son the market, you can get the featrues you want. 

Learn More:        www.federalhousingtaxcredit.com

If you would like to discuss your options in purchasing a home please feel free to contact me at any time.  

Melanie Dages    MLD NV  #43006

melanie.dages@yahoo.com

702-468-8737