Real Estate Information Archive

The biggest retailers in the world are bringing back Layaway (or at least now promoting it again). And in fact, it's reported that millions used Layaway programs last year to shop for the holidays.

What exactly is Layaway?

Layaway is a way to buy what you want now (especially for the holidays), and then get your items held for you while you pay for them over time. The beauty of layaway is that you pay for the item you want with cash and you don't put it on your credit card.

Some of the biggest retailers now doing this are Kmart and Sears.
What got me the most excited about the Kmart and Sears program this year is that while they offer Layaway 365 days a year, for the holidays they have WAIVED their Layaway fees.

While the fees to do Layaway are small, it's always nice to have "no fees". Secondly, Kmart and Sears are now bringing their Layaway program online, so you can shop online and use their Layaway program without ever entering a store. Once the item you buy is paid for, they ship it to you.

What happens if I change my mind?

If you put an item on Layaway and change your mind, it's no big deal. You can get a refund and you'll pay a small restocking fee. You'll be hearing a lot about Layaway this holiday season, as consumers continue to look for ways to shop smart and not go back into debt.

My suggestion is that you get planning now on the holiday shopping and consider Layaway programs as a smart way to avoid using your credit cards. Well, now if you don't have all the cash you can still buy it, and in a matter of months with smart planning, you can have it for the holidays without debt!

For details on Kmart Layaway program
For details on Sears Layaway programs

You know you are going to shop this holiday season, try using cash, or use Layaway, and imagine how good it will feel to get through the holidays and know you don't have debt on the other side, come January 1st.

 

The biggest retailers in the world are bringing back Layaway (or at least now promoting it again). And in fact, it's reported that millions used Layaway programs last year to shop for the holidays.

What exactly is Layaway?

Layaway is a way to buy what you want now (especially for the holidays), and then get your items held for you while you pay for them over time. The beauty of layaway is that you pay for the item you want with cash and you don't put it on your credit card.

Some of the biggest retailers now doing this are Kmart and Sears.
What got me the most excited about the Kmart and Sears program this year is that while they offer Layaway 365 days a year, for the holidays they have WAIVED their Layaway fees.

While the fees to do Layaway are small, it's always nice to have "no fees". Secondly, Kmart and Sears are now bringing their Layaway program online, so you can shop online and use their Layaway program without ever entering a store. Once the item you buy is paid for, they ship it to you.

What happens if I change my mind?

If you put an item on Layaway and change your mind, it's no big deal. You can get a refund and you'll pay a small restocking fee. You'll be hearing a lot about Layaway this holiday season, as consumers continue to look for ways to shop smart and not go back into debt.

My suggestion is that you get planning now on the holiday shopping and consider Layaway programs as a smart way to avoid using your credit cards. Well, now if you don't have all the cash you can still buy it, and in a matter of months with smart planning, you can have it for the holidays without debt!

For details on Kmart Layaway program
For details on Sears Layaway programs

You know you are going to shop this holiday season, try using cash, or use Layaway, and imagine how good it will feel to get through the holidays and know you don't have debt on the other side, come January 1st.

 

Supplement your Credit Line

A common problem when some are trying to qualify for a mortgage loan is the lack of recent good credit.  If a borrower does not have enough credit or any credit at all reporting on their mortgage credit report, some of our mortgage programs will allow a borrower to prove pay history through alternative sources to supplement the credit report.  Nontraditional or alternative credit sources include but are not limited to the following:

• Rent – if the borrower can supply the last 12 month’s cancelled checks, it would be best
• Insurances such as auto, life, medical, supplemental (excluding those paid through payroll deductions)
• School tuition
• Payments to retail stores
• Evidence of reserves of assets built through steady monthly savings
• Rent to own stores
• Small finance company accounts
• Car lot financing
• Gym or other club membership
• Utility Bills
• Dr. installment bills for example payments on a large bill with a  Dentist or Orthodontists 

If a borrower is looking to use these sources for additional credit, request a credit reference letter from each source covering at least the last 12 months history

When Do Showings, Contracts and Closings Spike Each Year?

Short Sale application process is very similar to the loan origination process when you received your loan from a bank. This package must be prepared for a bank to consider approving your request to sell your home short.

• Financial Information:
• Tax information --two most recent 1040's and 2 most recent W2's
• 60 days of current bank statements-(this is ongoing until the approval)
• 30 days of current pay stubs or commission check stubs.
• If self employed- pay stubs or YTD profit and loss statements
• Monthly budget/financial statement signed and dated

Hardship Information

• Hardship letter dated and signed same day as purchase contract
• Any documention supporting the actual hardship
• Medical Bills
• Child support or alimony payment information and divorce decree or child support order.

Mortgage & Other Relevant Property Information

• First Mortgage Statement
• 2nd mortgage statement if required (home equity loans?)
• Recent Real Estate Tax bills
• Recent condo association bills if applicable
• Any recent water, sewer bills, electricity, gas bills.

Other Documention

• Authorization form for lawyer and Realtor
• Short sale disclosure
• Waiver of conflict if representing the buyer
• 3 recent comps
• Listing agreement
• Offer to purchase agreeement
• Listing history
• Buyer proof of funds letter or Pre approval letter. 

It is important to understand that the above documents are required for almost every short selling bank. There are also bank specific forms that, in most cases, must accompany the above.

The end result if packaged correctly will be a happy buyer, seller and bank negotiator. By preparing yourself for the financial details you will make this horrendous task an easier one.

Several years ago, when our market was changing, most sellers were hoping that the values would change back. Now, our sellers are aware that this down draft is what it is.

Catch the Wave!

Market Spotlight! 2011 offers a Golden Opportunity, but for a Golden Opportunity to be had the public needs to have the positive message about the market.

•  Fact: The average fixed rate 30-year average interest rate is 9.0%.

Current rates are at about 5%. The historically low rates make it possible for more people to purchase a home or to even refinance a mortgage. FHA has a new program for lower credit scores (500’s scores) which entails 10% of the borrowers own funds, but happy news a loan could be had.

•  Houses are on Sale and to some it’s like a “blue light special”.

Because of the downturn in the economy, Buyers throughout Illinois are finding values at 2000 price levels or even lower.  Typically, a Short Sale or distressed sales have had their prices reduced by an average of 20%. Foreclosures nationally are sold for less than similar homes by 26%.

•  Indicators Hint at Better Days Ahead.

Per Harvard University, The State of the Nation’s Housing 2010, only 357000 new households were created in 2010-which is down more than 70% from the average in 2002-2007. This 63 year low resulted from lower immigration rates, and many Americans moved in with family members or doubled up with friends when we had a greater economic instability. New household formations are expected to return to more normal levels as the recovery continues.

•  Sudden Stop for Housing Starts

In response to economic weakness, tighter credit and higher resale inventory, builders slammed on the brake. Housing starts per the US Census Bureau have dropped below 1 million units on 3 times since World War II, in 2008, 2009 and 2010.

 Indicators are hinting of Better Days Ahead-

I have reblogged the outstanding information that Gil

 Preparation is The Key to Home Loan Approvals and Success

by Gil K

"I just found the house of my dreams and I want to make an offer, can you write me a preapproval letter quickly". 

Loan Agents and Realtors occasionally get clients that still think "where there is a will, there is a way". Unfortunately it should be more like "where there is a will, ability, commitment and capacity, there is a way. Its a painful transition but its also great because we are moving to a future with many less foreclosures, many fewer broken homes and many fewer hurt families.

 Statistics show that only about 55% of all people that applied for a home loan in 2010 were actually funded. It's probably safe to say that the 55% number would have improved greatly if loan applicants were better prepared for the loan underwriting process. Truth is, underwriting is not difficult but its not easy either. It can be frustrating for the best of borrowers but a whole lot worse for the uncommitted or poorly prepared home loan applicant.

 When interest rates start to climb as the economy improves, a lot of procrastinating buyers will want to get off the fence quickly. Home buyers considering a home purchase in the near future should prepare now and take the following basic steps to ready themselves for the home loan process:

-Round up the last two years tax returns and w2's

-Gather the most current 60 days worth of bank statements

-Keep available the last one months worth of pay stubs

-Offer 401k and retirement statements to show reserves and additional strength

-Keep debt low and credit in good shape

 The economy is starting to show signs of improvement which should soon start to encourage many smart well positioned home buyers.  

As always, staying ahead of the curve to keep you informed.

 Gil Kerbashian

NMLS # 197757

Residential Lending Since 1997

(847) 873-7295

Northwest Mortgage Services, Inc