Your landlord is ridiculously asking for an increase in rent every year but your family income stays the same. You are trying to weigh your options, is it time to get your own home or continue renting. There are several things to consider first and the most crucial question is : are you ready to render your first time home loan?
Companies, private or government owned have a lot of favorable packages for those who want to avail of first time home loans. With the recession affecting all economies there are so many foreclosed properties that were sequestered by these companies that they want to dispose off and they are willing to give the property through home loans and lenders specially the first timers.
Now is the time to do your research about the steps you have to do to buying your own home.
Figure out how much you can afford
Know your rights
Shop for a loan, especially those that are tailored to first time home loans and lenders
Under the universal membership coverage which takes effect beginning January 2010, the following are mandatorily covered by the Fund: all employees who are compulsorily covered by the SSS; all employees who are subject to mandatory coverage by the GSIS; uniformed members of the Armed Forces of the Philippines, the Bureau of Fire Protection, the Bureau of Jail Management and Penology, and the Philippine National Police, Overseas Filipino Workers, and Filipinos employed by foreign-based employers, whether deployed in the country or abroad.
With this expanded coverage OFWs can enjoy the various benefits of being a member which include:
Savings. Members’ contributions are credited to their savings or the total accumulated value that earn dividends and fully guaranteed by the national government. In 2009,
Pag-IBIG declared tax-free dividends amounting to P8.5 billion with a dividend rate of 5%.
Short Term Loans. OFW-members can also avail of short-term loans that will help address their immediate financial needs such as payment for tuition fees, hospital bills, appliance purchases, minor home repairs, and even for small business capital.
Housing Loan. A member of good standing is eligible to avail of a home financing loan that has an interest rate of as low as 6% to 11.5% payable in 30 years. The maximum loan amount is P3 million. The loan can be used for the purchase of a fully developed lot within a residential area not exceeding 1,000 sq.m., purchase of a residential house and lot, townhouse or condominium unit, construction or completion of a residential unit on a lot owned by the member, home improvement and refinancing of an existing loan.
More about this story here: http://www.pagibigfund.gov.ph/nr_feb2010b.htm
Brokers talk about what government is doing right -- the homebuyer tax credit tops the list -- and where it should mess out (could the Home Valuation Code of Conduct be the most reviled government policy of the 21st Century?). Many brokers would like the government to implement tougher licensing requirements that would raise the bar for entry to new agents.
Brokers reveal their concerns about the disparities in rules and standards at the multiple listing services and Realtor associations they belong to -- and also say they couldn’t function without them. Brokers want their Realtor associations and MLSs to get tougher on rule breakers, help them straighten out agency representation issues like dual agency, and consolidate into larger regional, state or national organizations.
Brokers say first-time homebuyers not only account for the largest share of home sales in many markets, but represent the fastest-growing segment of home sales in many of those markets. Second homes and move-up homes, on the other hand, are the most rapidly shrinking segment of their business.
Brokers say they may be cutting down on expenses like office staff and marketing and advertising, but many are loathe to do the same when it comes to technology, agent recruitment and training -- areas in which many have actually boosted spending. Brokers generally aren’t pushing for better commission splits with agents or the fees they charge for providing services, either.
Brokers said having experienced, trained agents is a bigger competitive advantage than the size of a company or its brand. Serving a niche market or creating an area of specialization was also seen as less important than staying abreast of technology and conducting online marketing.
The percentage of loans in the foreclosure process ticked up to a new record high in the final three months of 2009, and could continue to climb depending on the fate of a record number of borrowers who are "seriously delinquent," or behind on their payments by 90 days or more, the Mortgage Bankers Association said today.
However, the percentage of mortgages 30 days past due eased from the third quarter to the fourth, a concrete sign of a "beginning of the end" of an unprecedented wave of mortgage delinquencies that began in early 2007, MBA Chief Economist Jay Brinkmann said.
While the improvement in short-term delinquencies was good news, loans 90 days or more past due now account for half of all delinquencies -- the highest share in the history of the survey, Brinkmann said. A "sizable number" of those loans are in loan modification programs, he said. more...
I'm sure you are all curious about the process of home buying and you have no one to turn to but your friends or family to ask for advice regarding purchasing your new home. While some of them, especially those who have been there and done that can give you useful tip most of them don't know what they are talking about. Brian Lee, vice president and national sales manager for ditech, a wholly owned subsidiary of GMAC Financial Services, addresses the myths and sets the facts straight.
Myth 1: You need perfect credit.
Fact: An individual's credit score will significantly affect his or her mortgage loan approval and interest rate. Credit scores may range from 500 to 850, but the majority of scores are between 600 and 700. The higher the score, the more options you will have when looking for a mortgage. Along with your credit score, lenders will need to consider other factors before they approve a loan. Carefully review your credit report and immediately contact the credit reporting bureaus to correct any errors. You will want your credit report to be accurate by the time you apply for a mortgage.
Myth 2: Owning a home is more expensive than renting.
Fact: In many markets, owning can be as affordable as renting, especially when you consider the tax advantages of owning a home. Unlike rental costs, which increase over time, fixed-rate mortgages provide consistent monthly principal and interest payments for the life of the loan. As you make payments, the money will be applied toward the principal, increasing the equity in your home over time. Historically, owning a home has been one of the easiest ways of building wealth in America as home prices generally increase over time.
Myth 3: Lenders share your personal information.
Fact: Federal and state privacy laws protect your personal information. Generally, lenders must get your permission to share personal financial information with non-affiliates.
Myth 4: The mortgage process is too long and complicated.
Fact: With the right resources, the process of buying a home and obtaining a mortgage can be simplified. Expect an experienced loan officer to review the home financing process with you, define terms, and address concerns to find the financing option that's right for you. In addition, home lenders such as ditech offer a number of online resources such as payment calculators, appraisal tools and a glossary of commonly used mortgage terms to simplify the home-buying process.
Myth 5: Lenders love to make you wait.
Fact: Mortgage lenders don't enjoy making you wait, but it does take time to review your application. Although some lenders may give you a preliminary and conditional pre-approval based on the information provided in an application, they will need to verify this information. This typically involves confirming employment and income, financial assets, and assessing the value of the home you're purchasing. Other documents, such as a payoff statement, may have to be ordered as well. Because lenders must rely on the response time of third parties, the process may take longer than anticipated. Ask your lender about what to expect when you submit an application and to keep you informed of unexpected delays.
(article source: Orlado Sentinel)
The decisions being made today regarding the management of water and energy resources will profoundly affect our economic and environmental future. Climate change and other stresses are limiting the availability of clean water and affordable energy. A large amount of energy is expended to supply, treat and use water, meaning that water-oriented strategies can result in significant reductions in energy use and greenhouse gas emissions.
Here is an awesome idea to save water and reduce your personal carbon footprint: a dual purpose toilet with built-in-sink, don't say ewww!
This fabulous toilet cistern not only flushes, but when it refills itself, it does so via a tap on top of the tank. You can therefore use the water twice by washing your hands in it before it fills the water tank.
Has the potential of saving millions of litres of fresh water in the Australian and global environments. The water your toilet uses to flush is the same as what you use to drink with. Don't let that water go to waste! Functions just like a regular toilet suite, the only difference being the cistern is filled in a different way. It requires no additional installation requirements beyond that of a regular toilet suite and is suitable for new and existing installations. Save thousands of litres a year. Easily meet the '155 a day'target Saves space and stylish design.
Sadly most of the home insurance does not cover damages cause by flood and only a flood insurance can cover for flood related losses.
There are two basic insurance policies that deal with a homeowner's damage due to water -- a flood insurance policy and a homeowner's insurance policy. Losses not covered by one of these policies may be covered by the another policy. Knowing the losses to which your home could be exposed will help you decide whether to buy one or both of these insurance coverages.
While insurance policies may differ in the coverages provided, often there are basic features common to all policies. The homeowner should ask his or her insurance professional about the specifics of one's specific insurance policy. In the meantime, the following general information is based on standard insurance policies.
Examples of flood damage may include:
A nearby river overflows its banks and washes into you home.
Surface water caused by a heavy rain seeps into your basement because the soil can't absorb the water quickly enough.
A heavy rain or flash flood causes the hill behind your house to collapse into a mud slide that oozes into your home.
Flood damage to your home can be insured only with a flood insurance policy -- no other insurance will cover flood damage. Flood insurance is available through your insurance professional. To determine if your home is located in a flood plain, contact your county planning office. If you are living in a flood plain, flood insurance may be an excellent purchase.
HOMEOWNERS INSURANCE
A homeowners insurance policy does not provide coverage for flood damage, but it does provide coverage for many types of water damage to your home. Just the opposite from flood damage, for insurance purposes, water damage is considered to occur when water damages your home before the water comes in contact with the ground. A few examples of water damage may include:
A hailstorm smashes your window, permitting hail and rain free access to your home.
A heavy rain soaks through the roof, allowing water to drip through your attic or ceiling.
A broken water pipe spews water in your home.
Even if your homeowners insurance policy doesn't cover the water or flood damage you've experienced, losses from theft, fire or explosion resulting from that damage are covered. For example, if a nearby creek overflows and floods your home, and looters steal some of your possessions after you've evacuated the house, the theft would be covered by your homeowners insurance. However, the flood damage would be covered only if you have flood insurance.
Flood insurance and homeowners insurance do not duplicate coverage for water damage. Instead, they complement each other. It is up to you to talk to your insurance professional about flood insurance and homeowners insurance and then decide which insurance coverage you need to protect your home, its contents and your family.
DISCLOSURE Everything you read here is based on my personal opinion and not influenced by anyone. I am the author as well as the editor, so excuse some grammatical errors. This also serves as a warning for those who want to copy paste my stuff on yours, unless you wanna copy same errors, a little recognition that you got it from me will be fine. I do not claim expertise in ANY field, what you read here are my friendly advice, based on personal experience and are purely suggestions and recommendations only. For your professional or personal satisfaction, I highly recommend that you verify everything first before taking my word. Thank you!
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