Maryland Mortgage Solutions

Real Estate Agents Use Technology! In

2008-10-19T07:31:00.000-07:00

Inman News offers some great insight on ways that Real Estate Agents can leverage social media and technology to grow their business, especially in the down market!

Best of luck and happy selling!

Real (Estate) Conversations: Adam Iobst A-Team Home Sales.com

2008-10-10T16:50:00.000-07:00

Maryland Mortgage Solutions, Inc. welcomed Adam Iobst from A-Team Home Sales to our show. Adam's core business focuses on first time home buyers in the Maryland, DC and Virginia Markets. Adam prides himself on the relationships that he builds and his ability to make first time home buyers come true! Visit Adam Iobst's website at http://www.a-teamhomesales.com For more information about Maryland Mortgage Solutions visit: http://www.marylandmortgageinc.com/

SOCIAL MEDIA SITES FOR THE REAL ESTATE PROFESSIONAL

2008-10-09T18:54:00.000-07:00

Some social media sites for the Real Estate world. Some are better than others but depending on what you are trying to do this list will help you navigate some of the more established sites. This list provides some great platforms and mediums that allow you to show thought leadership and expertise among your peers. Some can creatively integrate profiles and responses into great marketing campaigns!

Active Rain is for real estate agents and others in the industry who want to promote and grow their businesses. There’s a lively blogging community here, offering a place to share ideas about online marketing and networking.
Localism.com describes itself as “The World’s Most Complete Neighborpedia.” This is a growing site that offers up the flavor and unique character of specific neighborhoods. Photos and maps, as well as neighborhood and property descriptions, are included.
Mydealbook.com is used by those in commercial real estate, including architects, developers, agents, and brokers. This is a network for sharing information about deals.
Realseeker is for buyers. They can search here for properties nationwide and then discuss them with others, using built-in communication tools like Skype and Twitter.
Trulia is a real estate search site that uses advanced search features, like heat mapping, as well as input from agents to offer more accurate—and therefore, more useful—information.
Zillow is not a social networking site in its own right, but allows users to integrate Zillow information into their own sites.
Zipvo Real EstateMedia Network is YouTube for real estate videos. Agents and others—like production companies—share information about making videos. Buyers can use Zipvo to search for videos in their locations of interest. Agents can integrate their videos into other sites.

What tools should Real Estate Agents use?

2008-10-07T15:07:00.000-07:00

This is going to be a very short post. Not because of being short on time but because of being straight to the point.

You need to be visible on the following sites:

Twitter:
Twitter is a free social networking and micro-blogging service that allows its users to send and read other users' updates (otherwise known as tweets), which are text-based posts of up to 140 characters in length.
YouTube:
is a video sharing website where users can upload, view and share video clips.

Wordpress:
An open source blog publishing site.

Maryland Real Estate agents contact us about how to leverage these tools!

Real Estate Agents Discover Benefits Of Social Media

2008-10-06T07:31:00.000-07:00

Social media tools seem tailor made for small businesses such as real estate agencies. One of the benefits of small businesses is that they can respond more quickly to change and innovation than large corporate entities.

Using Facebook
Peter Fletcher makes an interesting observation about the potential of Facebook as part of the real estate transaction process.

Real Estate Blogging
Social media is about connecting with customers and requires a level of transparency. Real Estate Agents who blog need to be prepared to listen to and interact with readers (prospective and current clients). A blog with comments disabled if of little value if you want to build trust and openness.

Opening yourself to public feedback can be scary at first, but savvy real estate agents will see this an opportunity to find out what clients want and to build relationships.

Building Trust - How One Real Estate Blog Does It
The real estate profession is up against the public’s general view of people in sales as being less trustworthy. Anyone selling can be seen fairly or unfairly, to have a vested interest. How do you set yourself apart from the crowd and general public perception and build trust?

The Colorado Springs Real Estate Connection is a blog that looks like it’s getting it right. The blog posts offer value to the readers. They are informative without being sales pitches. Posts include community events, real estate trends and market reports. Their blogroll links to other real estate agent bloggers in their network. The rest of the site covers the nitty gritty of what their business offers.

Interestingly, their most popular post by far is the one which talks about who they are. People want to know who they are dealing with. Social media is a great vehicle for making these connections.

It’s Not Just All Gen Y
Newspaper circulation figures are dropping. Traditional methods are no longer the only or the best way to get the word out in the digital age. It’s not just Gen Y who are online. The largest growth group on the internet are the baby boomers. Baby boomers are a large demographic in real estate for relocations, downsizing or upgrading.

What’s In It For Your Real Estate Agency?
For those a bit wary of this new media, think of social media as just another business tool to open up alternative communication channels. I’d encourage you to at least give social media a try and see where it takes you.

Early adopters of social media as a business tool in real estate will be way ahead of their less proactive colleagues - a powerful point of difference.

SOCIAL MEDIA AND REAL ESTATE AGENTS!

2008-10-04T15:31:00.001-07:00

Chris Broggan Social Media Expert Offers Advice to Real Estate Agents

2008-10-04T12:32:00.000-07:00

The Social Media guru himself offers advice to agents on how to start leveraging the tools of social media. It is amazing how a slight switch in mindset gets your property out to the masses. Read the full article: CHRIS BROGGAN

Do you know what you need for a loan application?

2008-09-17T06:35:00.000-07:00

We have found that many buyers don't know what they need to bring when they go to for a loan aplication. This not only for the first time buyer but many other buyers forget what they need and this slows down the process.
This is the information that is need for your loan application:

Your Address- landlord's address and phone or lender and loan number.
Name, address and phone number for each employer - 2 years.
Gross monthly salary, YTD pay stub and past 2 years W2's.
Check and saving, retirement accounts - last 2 months statements.
Dept - Name, address, account numbers, balance and monthly payments.
Loan information, market value and addresses on all real estate owned.
If self-employed - tax returns for the last 2 years - signed all schedules.
If commission, interest or bonus income received - tax returns for past 2 years - signed all schedules.
Completed, signed sales contract.
Up front fee for appraisal, credit report and flood certification.
Veterans - DD214 and Certificate of Eligibility.
FHA - Picture ID and Social Security Card.

Despite the economy, mortgage rates still fall

2008-09-17T06:14:00.001-07:00

The Kansas City Star

by Gene Meyer

Amid the doom and gloom on Wall Street following the federal bailout of mortgage giants Fannie Mae and Freddie Mac, there’s a glimmer of economic hope for the little guy.

Home mortgage interest rates have dropped below 6 percent for 30-year, fixed-rate loans. And they could be heading even lower.

That’s the best deal since at least mid-April for consumers looking to borrow money for a new home or perhaps to refinance their way out from an upcoming variable rate increase or balloon payment they’ve been worrying about.

Mortgage rates were already falling when the U.S. Treasury on Sunday threw Freddie and Fannie, which own or guarantee roughly half of the nation’s home mortgages, into conservatorship. But the decline in rates accelerated this week.

The drop wasn’t huge, but was enough “for anyone who’s looking to start kicking the tires on a new mortgage,” said Bob Gahagan, senior vice president and portfolio manager for American Century Investments.

For anyone who does refinance, it may generate enough savings to pay other debts or to salt away more to better ride out a soft economy, Gahagan said.

There is a catch, of course.

Lenders are likely to be more hard-nosed than last year about gauging one’s ability to repay a new loan. Credit market watchers say you’ll probably need a credit score of at least 700 to 720 or higher — which at least half of America has, industry statistics show — and a paper trail of steady income to get the best deals.

But even if your score is shakier and you have to pay more, you still may be able to find a loan cheaper than what it cost a month ago.

“Anytime you can get a mortgage below 6 percent with a 30-year fixed rate, I would certainly take it,” said James Nutter Jr., president of mortgage banker James B. Nutter & Co. in Kansas City.

Nimble borrowers agree.

Just last week, before the Treasury acted and while rates were still lying just north of 6 percent, the Mortgage Bankers Association reported a 9.5 percent nationwide jump in loan applications. It was fueled by a 15.4 percent increase in refinancing requests that appeared to come primarily from homeowners fleeing variable rates.

The break in mortgage rates comes at a fortuitous time for borrowers. A massive wave of adjustable mortgage rate resets is scheduled to crest in coming weeks, which is expected to fuel a rush to refinance into fixed-rate loans.

So, two questions. Will mortgage rates continue going down? And will the trend spread to credit cards and other consumer loans?

It’s hard to tell, Gahagan said.

For all the drama that accompanied the latest mortgage rate drops, the decline was not actually that large, only about half a percentage point, he said.

“That’s good news, and I don’t want to pour cold water on it,” Gahagan said.

The spread between interest rates in the U.S. Treasury securities markets and rates on mortgages isn’t falling as fast as it might because of uncertainties surrounding Wall Street investment firms and large commercial banks. And, in the lending system, estimates of the amount of mortgages that might be written down if credit problems persist stand at about $500 billion.

Both those trends reflect uncertainty, “and markets don’t like uncertainty,” Gahagan said.

If or when credit card and other consumer loan rates also start dropping will depend, in part, on what the Federal Reserve does at its next monetary policy meeting beginning Tuesday.

Real Estate Agents Expand Their Networks through Social Media

2008-09-14T16:24:00.000-07:00

Are you looking for a new home, but don’t want to spend all weekend walking around neighborhoods? Well now you don’t have to. Many REALTORS® have joined in on the Web 2.0 movement.

Blogs— There are now hundreds of ways to search for a home online. One of the newer methods is through blogging. Updated about once a week with content ranging from listing information, marketing and more general real estate topics, blogs have become another great way for REALTORS® to highlight incredible listings. Blog sites like Active Rain allow REALTORS® to communicate and network with one another.

Podcasts— Agents have also turned to podcasts to increase listing visibility. Web sites like MLbroadcast allow REALTORS® to post audio and video podcasts of the homes they are selling. There are also hundreds of podcasts on iTunes about the real estate market, investments, mortgages, real estate talk radio and much more. Even the President of Real Living, Kaira Sturdivant Rouda, has an iTunes podcast feed.

Social Networks— Jumping into the Web 2.0 movement also means REALTORS® have started creating Facebook and Myspace profiles. This allows them to easily reach out to Generation X and Y, who are traditionally first-time home buyers and don’t always know how or where to look for an agent. Using social media sites allows agents to communicate instantly with their clients in a user-friendly manner. Clients are also able to see if that particular agent is a good match for them by viewing his/her profile. Facebook, Myspace and many others allow clients and agents to connect on a real and personal level.

Online Videos— The use of online videos is also popular right now. Sites that allow you to post video content, like YouTube, Facebook, and MySpace are slowly enhancing the real estate industry because agents are able to post virtual video tours of homes. Clients can then get a better feel for a home before even stepping inside. This feature of the Web 2.0 movement is great for people looking to move to a different city or state. Viewing a video of homes in the area allows them to narrow down exactly what houses they like and don’t like. All in all, the Web 2.0 movement is advancing the real estate industry by making it more enjoyable and easier for you to find an agent and a home that is right for you.

For more information on how to market your home online, contact your local agent today!

New Rules for First Time Home Buyers

2008-09-14T16:21:00.000-07:00

Common Questions for First Time Home Buyers!

2008-09-14T16:19:00.000-07:00

Why should I buy, instead of rent?

Answer: A home is an investment. When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. This will save you a lot each year, because the interest you pay will make up most of your monthly payment for most of the years of your mortgage. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years. Finally, you'll enjoy having something that's all yours - a home where your own personal style will tell the world who you are.

What are "HUD homes," and are they a good deal?

Answer: HUD homes can be a very good deal. When someone with a HUD insured mortgage can't meet the payments, the lender forecloses on the home; HUD pays the lender what is owed; and HUD takes ownership of the home. Then we sell it at market value as quickly as possible. Read all about buying a HUD home. Check our listings of HUD homes and homes being sold by other federal agencies.

Can I become a homebuyer even if I have I've had bad credit, and don't have much for a down-payment?

Answer: You may be a good candidate for one of the federal mortgage programs. Start by contacting one of the HUD-funded housing counseling agencies that can help you sort through your options. Also, contact your local government to see if there are any local homebuying programs that might work for you. Look in the blue pages of your phone directory for your local office of housing and community development or, if you can't find it, contact your mayor's office or your county executive's office.

Are there special homeownership grants or programs for single parents?

Answer: There is help available. Start by becoming familiar with the homebuying process and pick a good real estate broker. Although as a single parent, you won't have the benefit of two incomes on which to qualify for a loan, consider getting pre-qualified, so that when you find a house you like in your price range you won't have the delay of trying to get qualified. Contact one of the HUD-funded housing counseling agencies in your area to talk through other options for help that might be available to you. Research buying a HUD home, as they can be very good deals. Also, contact your local government to see if there are any local homebuying programs that could help you. Look in the blue pages of your phone directory for your local office of housing and community development or, if you can't find it, contact your mayor's office or your county executive's office.

Should I use a real estate broker? How do I find one?

Answer: Using a real estate broker is a very good idea. All the details involved in home buying, particularly the financial ones, can be mind-boggling. A good real estate professional can guide you through the entire process and make the experience much easier. A real estate broker will be well-acquainted with all the important things you'll want to know about a neighborhood you may be considering...the quality of schools, the number of children in the area, the safety of the neighborhood, traffic volume, and more. He or she will help you figure the price range you can afford and search the classified ads and multiple listing services for homes you'll want to see. With immediate access to homes as soon as they're put on the market, the broker can save you hours of wasted driving-around time. When it's time to make an offer on a home, the broker can point out ways to structure your deal to save you money. He or she will explain the advantages and disadvantages of different types of mortgages, guide you through the paperwork, and be there to hold your hand and answer last-minute questions when you sign the final papers at closing. And you don't have to pay the broker anything! The payment comes from the home seller - not from the buyer.
By the way, if you want to buy a HUD home, you will be required to use a real estate broker to submit your bid. To find a broker who sells HUD homes, check your local yellow pages or the classified section of your local newspaper.

How much money will I have to come up with to buy a home?

Answer: Well, that depends on a number of factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover three costs: earnest money - the deposit you make on the home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house; the down payment, a percentage of the cost of the home that you must pay when you go to settlement; and closing costs, the costs associated with processing the paperwork to buy a house.
When you make an offer on a home, your real estate broker will put your earnest money into an escrow account. If the offer is accepted, your earnest money will be applied to the down payment or closing costs. If your offer is not accepted, your money will be returned to you. The amount of your earnest money varies. If you buy a HUD home, for example, your deposit generally will range from $500 - $2,000.
The more money you can put into your down payment, the lower your mortgage payments will be. Some types of loans require 10-20% of the purchase price. That's why many first-time homebuyers turn to HUD's FHA for help. FHA loans require only 3% down - and sometimes less.
Closing costs - which you will pay at settlement - average 3-4% of the price of your home. These costs cover various fees your lender charges and other processing expenses. When you apply for your loan, your lender will give you an estimate of the closing costs, so you won't be caught by surprise. If you buy a HUD home, HUD may pay many of your closing costs.

How do I know if I can get a loan?

Answer: Use our simple mortgage calculators to see how much mortgage you could pay - that's a good start. If the amount you can afford is significantly less than the cost of homes that interest you, then you might want to wait awhile longer. But before you give up, why don't you contact a real estate broker or a HUD-funded housing counseling agency? They will help you evaluate your loan potential. A broker will know what kinds of mortgages the lenders are offering and can help you choose a lender with a program that might be right for you. Another good idea is to get pre-qualified for a loan. That means you go to a lender and apply for a mortgage before you actually start looking for a home. Then you'll know exactly how much you can afford to spend, and it will speed the process once you do find the home of your dreams.

How do I find a lender?

Answer: You can finance a home with a loan from a bank, a savings and loan, a credit union, a private mortgage company, or various state government lenders. Shopping for a loan is like shopping for any other large purchase: you can save money if you take some time to look around for the best prices. Different lenders can offer quite different interest rates and loan fees; and as you know, a lower interest rate can make a big difference in how much home you can afford. Talk with several lenders before you decide. Most lenders need 3-6 weeks for the whole loan approval process. Your real estate broker will be familiar with lenders in the area and what they're offering. Or you can look in your local newspaper's real estate section - most papers list interest rates being offered by local lenders. You can find FHA-approved lenders in the Yellow Pages of your phone book. HUD does not make loans directly - you must use a HUD-approved lender if you're interested in an FHA loan.

In addition to the mortgage payment, what other costs do I need to consider?

Answer: Well, of course you'll have your monthly utilities. If your utilities have been covered in your rent, this may be new for you. Your real estate broker will be able to help you get information from the seller on how much utilities normally cost. In addition, you might have homeowner association or condo association dues. You'll definitely have property taxes, and you also may have city or county taxes. Taxes normally are rolled into your mortgage payment. Again, your broker will be able to help you anticipate these costs.

So what will my mortgage cover?

Answer: Most loans have 4 parts: principal: the repayment of the amount you actually borrowed; interest: payment to the lender for the money you've borrowed; homeowners insurance: a monthly amount to insure the property against loss from fire, smoke, theft, and other hazards required by most lenders; and property taxes: the annual city/county taxes assessed on your property, divided by the number of mortgage payments you make in a year. Most loans are for 30 years, although 15 year loans are available, too. During the life of the loan, you'll pay far more in interest than you will in principal - sometimes two or three times more! Because of the way loans are structured, in the first years you'll be paying mostly interest in your monthly payments. In the final years, you'll be paying mostly principal.

What do I need to take with me when I apply for a mortgage?

Answer: Good question! If you have everything with you when you visit your lender, you'll save a good deal of time. You should have: 1) social security numbers for both your and your spouse, if both of you are applying for the loan; 2) copies of your checking and savings account statements for the past 6 months; 3) evidence of any other assets like bonds or stocks; 4) a recent paycheck stub detailing your earnings; 5) a list of all credit card accounts and the approximate monthly amounts owed on each; 6) a list of account numbers and balances due on outstanding loans, such as car loans; 7) copies of your last 2 years' income tax statements; and 8) the name and address of someone who can verify your employment. Depending on your lender, you may be asked for other information. <\li>

I know there are lots of types of mortgages - how do I know which one is best for me?

Answer: You're right - there are many types of mortgages, and the more you know about them before you start, the better. Most people use a fixed-rate mortgage. In a fixed rate mortgage, your interest rate stays the same for the term of the mortgage, which normally is 30 years. The advantage of a fixed-rate mortgage is that you always know exactly how much your mortgage payment will be, and you can plan for it. Another kind of mortgage is an Adjustable Rate Mortgage (ARM). With this kind of mortgage, your interest rate and monthly payments usually start lower than a fixed rate mortgage. But your rate and payment can change either up or down, as often as once or twice a year. The adjustment is tied to a financial index, such as the U.S. Treasury Securities index. The advantage of an ARM is that you may be able to afford a more expensive home because your initial interest rate will be lower. There are several government mortgage programs,including the Veteran's Administration's programs and the Department of Agriculture's programs. Most people have heard of FHA mortgages. FHA doesn't actually make loans. Instead, it insures loans so that if buyers default for some reason, the lenders will get their money. This encourages lenders to give mortgages to people who might not otherwise qualify for a loan. Talk to your real estate broker about the various kinds of loans, before you begin shopping for a mortgage.

When I find the home I want, how much should I offer?

Answer: Again, your real estate broker can help you here. But there are several things you should consider: 1) is the asking price in line with prices of similar homes in the area? 2) Is the home in good condition or will you have to spend a substantial amount of money making it the way you want it? You probably want to get a professional home inspection before you make your offer. Your real estate broker can help you arrange one. 3) How long has the home been on the market? If it's been for sale for awhile, the seller may be more eager to accept a lower offer. 4) How much mortgage will be required? Make sure you really can afford whatever offer you make. 5) How much do you really want the home? The closer you are to the asking price, the more likely your offer will be accepted. In some cases, you may even want to offer more than the asking price, if you know you are competing with others for the house.

What if my offer is rejected?

Answer: They often are! But don't let that stop you. Now you begin negotiating. Your broker will help you. You may have to offer more money, but you may ask the seller to cover some or all of your closing costs or to make repairs that wouldn't normally be expected. Often, negotiations on a price go back and forth several times before a deal is made. Just remember - don't get so caught up in negotiations that you lose sight of what you really want and can afford!

So what will happen at closing?

Answer: Basically, you'll sit at a table with your broker, the broker for the seller, probably the seller, and a closing agent. The closing agent will have a stack of papers for you and the seller to sign. While he or she will give you a basic explanation of each paper, you may want to take the time to read each one and/or consult with your agent to make sure you know exactly what you're signing. After all, this is a large amount of money you're committing to pay for a lot of years! Before you go to closing, your lender is required to give you a booklet explaining the closing costs, a "good faith estimate" of how much cash you'll have to supply at closing, and a list of documents you'll need at closing. If you don't get those items, be sure to call your lender BEFORE you go to closing. Be sure to read our booklet on settlement costs. It will help you understand your rights in the process. Don't hesitate to ask questions.