It is the opinion of many people that the government, despite what the President may say, will in fact bail out mortgage high players Fannie Mae and Freddie Mac. For these companies to fold would be detrimental to the economy. But what exactly are Fannie Mae and Freddie Mac and what do they do? Simply put, a home buyer achieves a mortgage from a lending institute and Fannie Mae or Freddie Mac purchase the mortgage to then resell it again to investors. They receive money from the sale to the first lender to continue lending.

In the last decade Freddie Mac handled nearly $164 billion in New York mortgages alone; serving over 1,325,000 families. If Freddie Mac and Fannie Mae have serious financial problems then credit will tighten and it will become increasingly difficult for any consumer to get a mortgage; but particularly for the first time home buyer. At this point it is speculated that these companies will not need to borrow money from federal reserves, the government or the treasury; however, the government has stated that if they do need it they can come for it. With the potential for government bailouts confidence is building.

When push comes to shove, impact from national news or news on a local level does not change the rules in applying for a first mortgage; make sure you have your finances in order before shopping for a home, make sure your credit is in line and be aware of your credit score. The first time home buyer needs to educate themselves more than ever as lenders begin to tighten their belts. Knowing what your credit score is, how to increase that score and look favorable to the lenders will increase your chances of obtaining a mortgage regardless of what is happening in the financial world; these are basic rules.

Before a lender will grant a loan for a home he will first run a credit report on the buyer to help them get a picture of the buyer’s ability to pay the loan. The last thing a lending institute wants is for a buyer to get in over their head and default on their mortgage. It is therefore recommended that before shopping for a home or showing up at the lending institute to apply for a first mortgage you run a credit report of your own. This will help you figure out any areas that need to be corrected and what areas could be improved. Once you are satisfied and your lender runs the report he will be able to help you understand what you can afford. If you have discovered your credit is in shambles or your credit score is low there are ways to bring up your credit score and you will have the time to do so.

Freddie Mac and Fannie Mae having financial problems is just the reflection of what is happening in the economy today; we are all feeling the pinch. This is a time, more than any to tighten our own belts, avoid using credit excessively and manage your credit well; doing these things will allow you to be among the few buyers that the lenders extend a first time mortgage to.

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Generating home buyer and seller leads is no small task, especially for a real estate agent who is looking for ways to get some. There are many strategies involved in generating home buyer and seller leads, but their effectiveness is necessarily dependent on current market conditions and current market conditions.

A general approach for struggling real estate agents needing home buyer and seller leads is to employ multiple marketing strategies to leverage leads and prospects. Sure-fire techniques vary, so it is safe to say that trying diverse methods can increase the odds of generating viable leads.

Three Proven Lead Generating Strategies

Below are two successful lead generating strategies that work in most market conditions, Farming Expired Listings and an assortment of Lead Generation Ideas and Referrals.

1. Farming Expired Listings. You know about it, but are you doing it? Farming Expired Listings can be a passive way of generating buyers and sellers. If you get the listings from sellers you’ll then have something to attract buyers.

And guess what? When you have lots of listings sellers will call you you wanting to do business with you. I guess you can say that your for sale signs are kind of a status symbol that advertises you as a successful agent. And everybody wants to do business with a winner…right?

2. Lead Generation Ideas. If you think it you can generate leads by doing it; holding open houses, handing out flyer, networking, putting on home buyer and seller seminars, mailing letters, etc. I call this multiple streams of leads.

The point here is to create as many lead streams as you can, so that when one dries up others will continue generating leads for you. For example, some people work exclusively with sellers, but in a sellers market their commissions may dry up to nothing. So, it behooves them to be great listing agents who may also specialize in first time buyers and low to medium priced condos.

3. Referrals. No matter what your lead generating strategy is it’s important to connect with them people on a personal level, as people will do business with strangers that they like before they will with acquaintances that they dislike.

The real estate business is a business built on trust and constant contact with past and potential clients can cultivate that type of relationship. If you continue connecting with your past clients, the possibilities of getting referrals, recommendations and new acquaintances are high.

Remember, relationships are built and strengthened over time and the more past clients you have the more positive leads you’ll get.

Lead Generation Etiquette

Personally connecting with prospects is of the utmost importance in establishing relationships with buyers and sellers. Unlike what you think, selling isn’t just about having the gift of gab – it’s also about having the gift of likeability. So, the more you connect with people, the better the odds of you getting the quality and quantity of leads you need to have a successful career in real estate sales.

So, here’s the kicker. When you meet old and new acquaintances let them initiate the conversation about your real estate business. It is better if you let them start and open up with the idea to make the conversation casual and less business-focused. It also lets you seem less eager … maybe even a little desperate?

Some real estate agents fail miserably in this regard because they are overly aggressive and cannot wait for others to open up the topic. However, with human nature being what it is people who are serious about real estate business will open up no matter what; you just have to wait your turn before you pitch in.

Getting help from family, friends and co-workers will also increase the odds of generating home buyer and seller leads. But warn them about the opening up thing because you want them on the same page as you. A unified approach is important. So, let them just talk casually until others ask about you and your real estate connections.

Summarily, home buyer and seller leads can be realized from many different aspects, circumstances and situations. The most important thing to remember is to maximize your commitment to build trust and good rapport with everyone you meet.

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Sadly, dishonest activity exists in the marketplace. The good news is that the federal government has passed laws that protect home buyers from the negative affects of these unscrupulous activities. As a home buyer, there are certain rights granted to you as you search and apply for a mortgage loan for your home. Being aware of the rights helps protect you.

Borrowers Rights

As a borrower, and a home buyer, there are several rights granted to you by both the Consumer Credit Protection Act and the Fair Credit Billing Act. Both of these are legislation passed by the United States Congress.

You have the right as a home buyer:

- To shop for around for the best loan among different mortgage lenders and brokers.

- To be informed of your loans total costs. This includes interest rates, points, and other fees assessed by a lender or broker.

- To be informed of any fees that will not be refunded to you in the event that you cancel the loan agreement.

- To know the reason for denial if your loan is turned down.

- To receive a free copy of the credit report that was used in denial of your loan. The lender should give you information about obtaining this credit report.

- To have income from child support, alimony, and pension considered in qualification for a loan.

- To ask questions about anything you do not understand about loan charges and terms.

- To know what you and the lender are paying the mortgage broker for a loan.

- To be considered for a loan regardless of age (unless under the legal age to sign a contract), gender, marital status, race, color, religion, and national origin.

- To receive an appraisal report for the home.

RESPA

The Real Estate Settlement Procedures Acts, administered by the Department of Housing and Urban Development, prevents mortgage lenders and brokers from charging certain types of fees.

Lenders are required, by the RESPA to disclose certain information to you pertaining to your application for a mortgage. You, as a home buyer, must receive a Good Faith Estimate from the lender or mortgage broker. The Good Faith Estimate, or GFE, details an estimate of fees that you will be charged for your mortgage. The lender must also provide you with a Mortgage Servicing Disclosure Statement if the loan is to be serviced by or transferred to another lender.

Finally, the Special Information Booklet, containing information about real estate settlement services, must be given to you as a home buyer. These documents should be given to you within three days after your application has been received. In the event that your application is denied within three days, the lender does not have to provide with the documents.

These laws have been put into place to protect you, as a home buyer, from scams, discrimination, excessive fees, and other malicious business practices. Educating yourself to the rights you have as a home buyer brings you one step closer to obtaining a home loan. Present yourself to mortgage lenders and brokers as a home buyer that is aware of the rights provided by the law.

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One of the biggest fears of first home buyers everywhere, is that they may never get on to the property ladder at all. This is a real social stigma in Australia where 70% of people own, or are buying their own homes.

The Federal Government’s ‘First Home Owner’ grant that was increased in October 2008 has encouraged a flood of calls to mortgage brokers. Young hopefuls are looking to take advantage of the grant to make that first big step toward a place of their own. Unfortunately the grant ends on June 30th 2009 although mortgage brokers are lobbying for a six-month extension of the grant. There was very little interest in first home buying through 2008 until the grant went up. So it was just the reassurance and encouragement that first home buyers needed to overcome their reticence.

A second equally large fear for first home buyers is the fear of failure. The fear of making a big financial mistake that could end up in bankruptcy and foreclosure. Clare McGrath a 28-year-old laboratory manager put it this way. “Dave and me have wanted a place of our own for years now and have been saving towards it. But how safe were our jobs and what could we afford? How far should we stretch our budget to get a home we would love? The mortgage market can be very confusing and frightening to first home buyers who will probably only buy 2 or perhaps 3 houses in their lives.

Clare again explains. “We did well in finding a mortgage broker who understood our situation and took us through a very complete and interesting financial health check. He helped us look at our incomes and expenses. He gave us good estimates of our mortgage repayments based on our ability to service a home loan. He took into account all of our assets and liabilities and our precious deposit. We had never realized before how much our mortgage depended on so many things”

35% is the magic figure that should reassure first home buyers and give them the best guide to what they can afford with minimal risk of getting into trouble of the foreclosure kind. No first time buyer should take on repayments that are more than 35% of their weekly pre tax income. All responsible mortgage brokers will advise their clients in this way and will use sophisticated mortgage calculator software to judge first home buyer affordability.

To get a first home mortgage loan you must own more than you owe. Lenders will look carefully at your existing assets and liabilities. Assets including things such as furniture, vehicles, savings and investments you may have accumulated over the years. Lenders will look at your credit record to determine whether you are likely to default on the repayments. Factors such as your occupation, work record, where you live and your record as a tenant, are used to build a credit profile. Your credit risk can influence how much you can borrow.

A third fear for first home buyers is getting the timing right for their entry into the market. Many first home buyers held back in the first three quarters of 2008 out of uncertainty and fear that house prices would continue to fall. The First Home Owner grant is definitely reversing that trend. In contrast to this many first home buyers are afraid not to jump in and buy as soon as they are in a position to do so because house price inflation is relentlessly moving affordable homes out of their financial reach. In reality there is some truth and a lot of rubbish talked about house prices generally. The only way for first home buyers to overcome their fears is to get expert advice in the way Clare and Dave did.

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“In order to promote the production of more affordable new housing units for very low, low and moderate income individuals and families in the state, to promote the preservation and rehabilitation of existing housing units for such persons, and to bring greater stability to the residential construction industry and related industries so as to assure a steady flow of production of new housing units…”

Many times, people have heard of THDA and are confused, thinking that THDA is a certain loan type. In fact, it’s lending agency. All THDA mortgages must be insured by private mortgage insurance, FHA, VA or RECD And as these loans are intended for low to moderate income families or individuals, there is a income limit and acquisition cost limit. Also, you must be a first time homebuyer unless your home is in a targeted area.

Why is THDA so fantastic for a first time homebuyer? Well, it comes down to money. THDA offers a below market rate and will allow up to 100% financing. Have you been reading the papers lately? It’s not so easy to find 100% financing these days. Unless, that is, you’re a first time homebuyer. It also has programs that allow for down payment assistance via grants from certain approved agencies (if your loan type requires a down payment). If you have satisfactory credit and the home you wish to buy meets THDA’s standards, then you’re in business.

All THDA mortgages are 30 year fixed rate loans, so you needn’t worry about finding yourself with an ARM loan (adjustable rate mortgage) and a new payment you can’t afford in 3 years. And THDA allows lenders to only charge customers a standard 1% origination and .25% discount fee. It also closely monitors fees associated with the loan. THDA really looks out for the best interest of the first time homebuyer. If you are eligible for a THDA loan, you can feel pretty certain that an unscrupulous lender can’t take advantage of you because THDA won’t let them. For so many people, buying a home is pretty intimidating. THDA takes away the uncertainties a buyer faces with its guidelines and lending practices.

If you do apply for a THDA loan, be prepared to document your credit worthiness. THDA loans require slightly more documentation than your average loans because of the uniqueness of its product. In order to offer more, THDA asks for more – ensuring you qualify for its pretty awesome program. Sounds like a fair trade, if you ask me.

What are the disadvantages of a THDA loan? Not many. They do have a federal recapture tax if you sell your home within the first nine years of owning it. But it sounds scarier than it really is. I’ve heard that only about 1% of THDA customers actually pay this tax. That’s because a bunch of really great things have to happen to you in order for it to actually apply to you. And if those great things happen to you, paying the recapture tax won’t matter much to you anyway. I’ve been in the business for 16 years and have only heard of one person actually having to pay one. He graduated from medical school and his income when through the roof. His property was sold above market value than for the area because it was adjacent to some property that a huge retailer wanted to purchase. Again, good things have to happen to pay the recapture tax. So, you shouldn’t be afraid of it.

More people need to hear about and take advantage of the THDA loan programs. It’s such a great product and really helps the community and the housing industry. If you’re a first time homebuyer or think you’re in a targeted area, make sure you ask about THDA to see if you would qualify for a loan. You won’t regret it!

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Florida First Time Home Buyer Loans

Every Florida home buyers should know the many advantages that come with an FHA mortgage loan. FHA loans were created during the great depression to help increase home ownership. For the Florida mortgage applicant the FHA program can simplify the purchase of a Florida home, making financing easier and less expensive than a conventional or subprime mortgage loan. Some highlights of the Florida FHA loan program include:

Minimal Down Payment and Closing costs.

Down payment less than 3% of Sales Price Gifts are allowed Seller can credit up to 6% of sales price towards closing and prepaid costs. 100% Financing available No reserves required. FHA regulated closing costs.

Easier Credit Qualifying Guidelines such as:  

No minimum FICO score or credit score requirements. FHA will allow a home purchase 2 year after a Bankruptcy. FHA will allow a home purchase 3 years after a Foreclosure.

To take advantage of the FHA program in Florida, give us a call 1-800-570-0448 or visit http://www.fhamortgageprograms.com/florida/ to find out more about the FHA mortgage program in Florida

FHA mortgage Loans insured by the Federal Housing Authority  and are designed to help Florida homebuyers realize the dream of owning a Florida home. And they’re ideal for Florida first-time home buyers! Because the FHA insures these Florida home loan mortgages, Florida FHA mortgage lenders can offer Florida mortgage applicants a better deal and work with Florida applicants to qualify regardless of past credit problems, collections, past bankruptcy filings, or higher than average debt-to-income ratios

Applying for an Florida FHA loan

Applying for a Florida  FHA home loan through www.FHAmortgagePrograms.com is easy. As a Florida mortgage lender we have combined the speed and ease of the Internet with a hands on approach help Florida mortgage applicants qualify for FHA financing.. Once you apply online, we enter your information into our FHA mortgage database and quickly approve your Florida home loan request. And, Within  hours we will contact you for your Florida FHA home loan approval.

Apply now at http://www.fhamortgageprograms.com/mortgage/fha-loan-program.shtml

The FHA Interview

During the FHA loan consolation and phone interview, your Florida FHA mortgage consultant  will go through your application to determine your eligibility. If you don’t pre today for an FHA home loan we will make recommendations, and provide you with a road map to FHA loan approval. So as some point you will be approved for a home loan. The FHA loan interview is also a great chance to get acquainted with your Florida FHA  loan officer, who plays an important role guiding your towards approval. . Good communication with your Florida FHA  loan officer will increase your chances of get pre-approved for an FHA home loan in Florida.

FHA Loan Processing

We provide in-house processing for Florida FHA loan applicants so we know where you loan is throughout the entire approval process. with one phone call all Florida applicants will know how close they are towards obtaining the home of their dream. Processing an FHA home loan involves gathering documents to verify the information in your application. Documents may include (but are not limited to) W-2 forms, pay stubs, credit reports, and bank statements. After your phone interview, you’ll receive an FHA pre-qualification letter that includes a checklist of FHA documentation needed to submit your home loan request. This checklist will itemize all of the necessary items the Florida FHA mortgage lender will need to finalize and close your FHA loan request.

Closing your FHA mortgage loan

The closing is the “end of the line” in obtaining an FHA mortgage. At the FHA mortgage closing, you will sign all of the required FHA mortgage documents. If it’s a new FHA mortgage loan, you’ll then take possession of your new home. If it’s an FHA refinance, you’ll start to enjoy the benefits of a low FHA mortgage rate, cash out, or both..

FHA frequently asked questions  http://www.fhamortgageprograms.com/faq/fha.shtml

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My wife and I live in California and have to do a stated income loan because we both work for tips for a living. We both have credit scores above 750. Our loan officer said that first time home buyer programs are only for buyers that go full doc. Does anybody know of any local or federal government grants or buyer programs for stated income first time home buyers?

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I’m looking for an affordable home in the area of Pasadena, California. But I’m a first time buyer. How can I get the cheapest home there?

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Due to the current down market, more and more people are looking for alternate, non-traditional ways to sell their home. The days of sticking a FSBO (For Sale By Owner) sign in the yard or simply listing it with the realtor that your friend at work used, just isn’t having much effect these days. Depending on your selling situation, selling your home to a professional home buyer can be the right selling decision. As with other home selling options, selling your home to a real estate investor has benefits.

Working with an experienced investor can really simplify and expedite the process. Some of the great benefits of selling your house to a professional property buyer are: you are able to sell your house fast, “as is” on the date or your choice, you do not have to pay large real estate commissions to a Realtor, you do not have to spend your time, energy and money updating and making repairs and you only have to have one showing. There are many other benefits that an honest, experienced and well trained Charleston real estate investor can provide, such as knowing exactly how to handle problem properties or situations where Low Country folks are taking the brunt of the current economy on the chin and are facing many of the more and more common financial problems like foreclosure that need short sales in order to sell their over leveraged home and avoid foreclosure.

I would recommend selling your house to a local real estate investor if you are in any of the following selling situations:

I am behind on monthly mortgage payments I need to sell my home fast I am moving out of state or out of my local area and can’t afford two mortgage payments I have been transferred by my job I am going through a Divorce and need to sell my house My home is 100% financed and I do not have enough equity to list my home with a Realtor I need to Stop Foreclosure and avoid ruining my credit I am currently in Bankruptcy Someone in our family has health problems and can not work, therefore we can not pay our bills I am tired of being a Landlord and do not want to deal with tenants anymore My home needs lots of repairs and I do not have the time or money to fix it up My home is in pre-forclosure I want to cash out of my investment property My home has been on the market with a realtor for many months and my listing agreement is now expired, I want to sell my house fast, now We recently inherited a property and want to sell it quickly and want someone familiar with an estate sale and the probate process I own my house free and clear and am willing to wait for the market to turn around but would consider taking payments for my equity if I can get my asking price now

As you can see there are many reasons why you should consider selling your home to a local home buyer, and these are not all of them. Simply put, listing your home with a Realtor or trying to sell your home FSBO cost you money and time, it also does not get you offers within just a few hours/days. If you do not have time, do not have money, or simply do not want to deal with the hassles of selling your home, then sell it to a real estate investor. You may be happily surprised by the offer you get.

Before calling some random number on the side of the road off one of those “We Buy Houses” signs, it is important to make sure you know who you are dealing with. Unfortunately, there are a few unethical investors, like in any business, and currently the real estate market is a prime target. Thanks to the Internet it is relatively easy to locate information about a legItimate business. South Carolina business owners are required to register with the South Carolina Secretary of State and you can see if they the business you are calling has bypassed even that basic requirement. The Attorney General’s office handles consumer complaints, as does the Better Business Bureau. Realtors and brokers are licensed through the Real Estate Commission. These agencies can help to ensure you are working with a licensed, legitimate, complaint-free business or real estate investor.

Charleston Home Buyers, LLC is an Accredited Member of the Better Business Bureau, a registered LLC with the South Carolina Secretary of State, and an active member of the Charleston Real Estate Investors Association. “We pride ourselves on our integrity and conduct business under strict ethical principles. We say what we mean and do what we say!” Many references and testimonials are available upon request and some of which are posted on our website. We buy houses in Charleston, Dorchester and Berkeley County and work with a group of nationwide investors. We currently are looking to buy more real estate in Summerville, Goose Creek, North Charleston, Ladson, Hanahan, West Ashley, James Island, Johns Island, Mt. Pleasant, Downtown and all other area in the tri-county area.

If you need to sell your house quick, submit your property information via the “Sell My House” form at our website today for a Free, Confidential, No-obligation offer or call our toll free 24 hour recorded message at 888-52-BUYER (888-522-8937) for more information about selling your home to a professional house buyer. You can also always call us direct 843-72-BUYER (843-722-8937), however it is usually better to take 5 minutes to fill out our property information form first so that we can save you time by having the information already and do some research so that we can get an offer to you right away.

Here’s what some of our sellers have had to say:

“I had been trying unsuccessfully to sell my house for 9 months with a realtor…tired of having the house perfect… we closed the following week” Frank P. – North Charleston

“In less than a week’s time, all of my headaches were over… I would recommend anyone who needs to sell their house to this group of caring people…” Rev L. Greene – Summerville

“My experience with Charleston Home Buyers began and ended with extreme kindness, genuine concern, and sympathetic professionalism…” Brenda M. – West Ashley

“Selling a house can be quite difficult and stressful unless you can find someone like Charleston Home Buyers …… They saved me from losing my house to foreclosure and I was able to make some money and not lose everything.” B. Harvey – West Ashley

“….selling our home to Charleston Home Buyers was the best decision we made. They handled our affairs with the utmost care and efficiency…..” The Daniels Family” – Charleston

Copyright © 2009 Charleston Home Buyers, LLC. All rights reserved.

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