Second Mortgages: What You Should Know
After much consideration, you settled on a mortgage to help buy your home. Now that you're a proud homeowner, you may eventually find yourself in the position to need or want a second mortgage. Here's what you need to know:
Reasons to Get a Second Mortgage
Although this is not a complete list of reasons to take out a second mortgage, here are some of the more common scenarios:
Types of Loans
Once you start looking into second mortgages, you'll find that they all generally fall into one of two types:
Of course, there are pros and cons to each type. So it's a good idea to talk things over with a trusted adviser to make sure your second mortgage makes sense financially.
American Pacific Mortgage
Completing Your Final Walk-Through
You put a lot of effort into finding the right house, and now that your closing is just days away, you're finally ready to start calling your new place home. Before this can happen, however, you should do a final walk-through of the property.
What is a final walk-through?
A final walk-through isn't a home inspection (that typically takes place in conjunction with your offer). It's not the time to request new repairs, either. Instead, this is an opportunity to make sure the condition of the home is as expected. Specifically, you'll want to confirm there haven't been any unexpected or unwanted changes made to the property.
What should you look for?
Make sure there isn't any move-out damage and that all your requested repairs have been made. You'll also want to check that no extra furnishings have been left behind and that everything included in the home price -- items like appliances, light fixtures or window blinds -- are in place and in good condition. Use a checklist to guide you through this process.
When does it take place?
The final walk-through can happen anywhere from a few days prior to your closing to just a few hours before.
Finally, be sure to bring a copy of your contract along for reference and consider asking your real estate agent or a home inspector to help you double-check everything and verify repairs. Remember, this is your last chance to give the property a good once-over before you legally claim it as your own.
American Pacific Mortgage
What Is Procuring Cause? How It Helps Determine Commission for Real Estate Agents
“The procuring cause helps real estate agents and buyers figure out who will receive the commission on a house sale. It typically comes into play when a buyer purchases a house he saw with two different real estate agents. Maybe one agent found the house and the other agent helped you put together your offer—so who gets the fee for their service? It all hinges on which agent was the procuring cause—the agent who sparked the interest in the buyer that ultimately led him to buying the house.
Buyer-broker agreements and procuring cause
To establish that they did work with their client, real estate agents will typically ask clients to sign a buyer-broker agreement. It will stipulate that they represent the buyer and whether or not they have an exclusive right to represent the buyer.
What is procuring cause, and how does it establish who gets commission?
In most cases, that would be the agent who first showed you the house. But if you have clearly cut ties with that agent and just happen to see the house again with another agent, procuring cause could also be construed to mean the one who actually writes up the offer and helps you negotiate.
Real estate agents ‘can be sued if they help a client purchase a home knowing the client already looked at the home while under contract with another agent, and that original contract had not expired or been terminated before the time of the purchase.’
To determine who gets the commission, the agents in dispute may choose to arbitrate through the local real estate board. In that case, the buyer might be called in as a witness to explain his side of the story.
To avoid getting into a dispute like this, make sure you are upfront with your agent. Give the first agent a chance, but if you need to move on, be clear with the second agent about which properties you already looked at with the first agent.”
Excerpt from Cathie Ericson Realtor.com Magazine
How to Be More Financially Organized
"If you've resolved to improve your finances in the coming months, you'll need a solid plan to set yourself up for success. Here are three ways to help you better manage your money in 2018.
Start a budget.
A budget is just a plan for every dollar you earn, and there are a lot of tools to help you strategize. Start with your monthly after-tax income and then list your monthly expenses, including set payments such as the rent or mortgage as well as those that vary, like utilities, credit cards and gas. Don't forget extras, such as streaming subscriptions, or expenses like car insurance that only crop up a few times a year.
Pay down debt.
Your budgeting process should have identified your debts, so now you need to focus on repayment. Two common methods can help with this: There's the avalanche approach, which prioritizes your highest-interest debt, and then there's the snowball method, which focuses on paying back your smallest debts first. While the avalanche method saves you the most money in the long run, some say the small wins of the snowball approach can help keep you on track.
Build an emergency fund.
Having three to six months' worth of savings can help you avoid relying on high-interest credit cards in the event of a job loss or other emergency. Cutting costs is an obvious first step in unearthing those savings, so try to make more meals at home, take advantage of loyalty programs and avoid small, frequent purchases like morning coffee. Once you've saved a little bit, make the most of these funds by placing them where they'll offer better returns than a traditional savings account.
Getting your finances in order isn't always fun or easy, but following the guidelines above can help you get off to a good start."
American Pacific Mortgage
This is quoted text from a Newsletter from David Rosenthal lender at American Pacific.
American Pacific Mortgage here in Albuquerque is closing deals on time. We are serious about closing your transaction on time every time. I am known for excellent communication between you and our client. No surprises, do doubts, no funny business. I will deliver all of the good news as well as the bad news in a timely manner. I answer my phone, when you are working I'm working.
I will be avaible to answer any questions or help with any Pre-Approvals during the holiday season."
Thanks for taking a minute to read this.
Senior Loan Officer / Sales Manager
NMLS # 1495955
June's latest news release:
“ABQ housing inventory still low, selling fast
Published on Jun 12, 2017
FOR IMMEDIATE RELEASE:
Contact: Don Martindell, President,
Kent Cravens, Executive Vice President,
ABQ housing inventory still low, selling fast
Albuquerque, NM (June 12, 2017) – Housing activity in the Albuquerque metro market continued to show increases in the month of May, both for the number of homes going under contract, as well as average and median home sale prices. Housing inventory remains seasonally low yet affordable for many buyers.
Continuing the trend from the previous month, pending sales are at a 14-year high, reaching 1,279 for detached homes, a 20.7 percent increase from May 2016. Pending sales for townhomes and condos reached 100, equal to the same number of pending sales reported in May 2016.
Detached home sales totaled 1,196 units, a 17.5 percent increase from May 2016, and 7.4 percent year-to-date increase compared to last year. The median sales price for detached homes increased to $199,950, a 5.2 percent increase from a year ago, while average sales price also increased 4.0 percent to $235,723. In contrast, townhome and condo sales increased 24.7 percent to 121 units, with year-to-date sales remaining 7.9 percent higher than last year. The median sales price for townhomes and condos decreased 4.5 percent in May 2016 to $139,950 while the average sales price decreased 2.4 percent to $148,228.
Market conditions in May had a positive effect on the average days a home spends on market before sale. Detached homes sold in 45 days on average, selling 8.2 percent faster than this time last year. Townhomes and condos for the Greater Albuquerque area sold on average in 52 days, and are selling 11.9 percent faster year-to-date when compared to the same time last year.
New listings entering the market in May rose 13.7 percent for detached and 7.2 percent for condos/townhomes when compared to last year. Listing inventory for detached homes saw a 19.6 percent decrease to 3,266 for May. This puts detached inventory at a 3.4 month supply decreasing 24.4 percent from last year at the same time.
“Market activity in Albuquerque metro continues to outpace the previous year,” said Don Martindell, 2017 President of the Greater Albuquerque Association of Realtors. “With another record month of pending sales and rising home prices, the Albuquerque metro is off to a great start leading into the summer months.”” Posted public article. See GAAR.com