CAN YOU STILL GET A NO MONEY DOWN MORTGAGE?

Are you interested in buying a home...

 but worried about coming up with the down payment? 

If so, you are not alone...

 

of recent home buyers in Maine were first-time buyers.

(according to the 2012 Profile of Home Buyers and Sellers by the National Association of Realtors). 

 

Good News!!

There is still some no-money down

mortgage options available! 

Here are a couple of options:

• Rural Development  - This program offers no money down loans if you meet income eligibility and credit requirements.  There are also restrictions on where the property can be located.  There is a RD Direct Option as well as a RD Guaranteed Housing Loan program that is offered through private lenders. 

• VA Home Loans - This program is offered to Active Duty Service members, Veterans, and National Guard and Reserve members.  To be eligible, you must have a good credit score, sufficient income, a valid Certificate of Eligibility, and meet certain service requirements.

 

If you don't qualify

for one of the no-money down options,

don't worry...

 

• Maine Housing First Home Program - offers mortgages to first time buyers with little or no down payments if you meet the income limits. 

• FHA offers a mortgage with only 3.5% down!  The purchase price amount that can be financed varies from state to state (see Maine's loan limits here). 

 
Setting up a meeting with a couple of reputable lenders is the first step in finding out what program will work best for you.  Not all lenders offer all mortgage options so you may have to shop around a little bit to find the best fit. 
 

Be Prepared:

When you meet with a lender, what will you need?

 

2 years of tax returns with W2's

30 days of pay stubs

2 months of bank statements

 

If you are interested in purchasing a home

 with little or no money down,

call us at (207)784-3800

or e-mail brenda@fontaineteam.com

 to get started today!

 

HAVE YOU ALWAYS WANTED A WATERFONT HOME?

If you have always wanted to own

a waterfront home in Maine... 

 

Now is a great time to purchase one.  

Prices are affordable and interest rates are at all time lows.

 





If you are considering purchasing waterfront property,make sure you are familiar with shoreland zoning in Maine.  

 

What is Shoreland Zoning?

 

 Land withing 250 feet of the normal high-water line of any great pond or river,

upland area of coastal wetland or defined freshwater wetland,

and within 75 feet of normal high-water line of streams.

Click here

 

Besides restrictions set in place by the State of Maine, each individual town may have additional shoreland zoning rules and restrictions, so make sure you do your homework if you are considering a waterfront home.    

 

Click here

A few things to consider when you are looking at waterfront property are:



Non-conforming structures

Expansion possibilities

Clearing trees and other growth

Minimum setback requirements

Lot Coverage

Flood Elevation

 

Click here

Your real estate agent can be a valuable resource to help you find the information you need to make an informed choice.

 

Click here

 

 

Call us at

784-3800

to find your dream Maine waterfront home today!

 

SHOULD YOU LEAVE YOUR APPLIANCES WHEN SELLING?

 

In the latest episode of

Your Real Estate Solutions

with Brenda Fontaine...

 

 

Join Brenda Fontaine as she discusses whether it is a good idea

 to include appliances when selling your Maine home.

 

 Julie Poulin from Mortgage Network discusses no money down loan options.

 

DeeDee Whittemore from Phenix Title talks about the dangers of

discounted title searches and title insurance.

 

Do you have a question about real estate that you would like

to have Brenda or one of our experts answer? 

 Just e-mail us at brenda@fontaineteam.com 

or call

(207)784-3800

 to schedule a private meeting with one of our skilled agents.

WHAT DOES YOUR CREDIT SCORE NEED TO BE TO GET A MORTGAGE?

 

What does your credit score need to be

to get a mortgage?

 

Do you need to purchase title insurance

if you have a title search?

 

Is it a good idea for the buyers to move in

before closing?

 

How can snow damage the roof of your home?

 

 

Find out the answers to these questions and more

in our latest episode of...

Your Real Estate Solutions with Brenda Fontaine!  

 

Just click on the photo above to start the video or go to http://youtu.be/1Tzw7KxBM54.

 

Do you have a topic you would like for us to discuss

on a future episode?  We would love to hear from you. 

Just send your suggestions to brenda@fontaineteam.com!

 

WHAT SHOULD YOU KNOW ABOUT MULTIPLE OFFERS?

What Should You Know About Multiple Offer Situations?

 

 

So you have finally found your dream home and

are meeting your Real Estate Agent later today to make an offer

but when you drove by the house last night...someone else was looking at it. 

What if they make an offer too?

 

 

 

After several years of a sluggish real estate market,

we have started seeing multiple offers on properties again.

 

 As a buyer, what should you know about multiple offer situations?

You may not know there are other offers. 

 

The seller decides whether they want to disclose that offers have been made on their property.  

At the time the property is listed for sale, the listing agent discusses with the seller
whether the existence of offers will be disclosed to potential buyers.  

If the seller has not given permission, their real estate agent CANNOT disclose

to a potential buyer that there may already be an offer on the property. 

The first offer is not given priority. 

The seller can look at all offers received before responding to any offers. 

After reviewing all offers the seller has several options.  

• Accept one offer & reject the other offers
• Counter one offer & not inform the other buyers
• Alert one or more buyers that they are in a competing offer situation
• Alert all buyers that they are in a competing offer situation
• Reject all offers and encourage higher offers
• Delay acceptance of any offer to wait for another offer
• Reject all offers
• Do nothing

The seller is not obligated to accept an offer just because it is full price. 

A full price offer may not be the highest offer in a multiple offer situation. 

The seller is not obligated to accept the highest offer.  Other terms such as

closing date or type of financing the buyer is using may factor into the seller's decision.

 

 

So the bottom line is, when you are making an offer on any home,

 you may be in a multiple offer situation and not know. 

Your first offer may be the only opportunity to buy that home, so discuss all your options

and concerns with your Real Estate Agent.  They should be able to advise you

 on how to make an offer that gives you the best chance

of your offer being accepted without overpaying. 

 

Do you have more questions about buying a home or multiple offer situations? 

We can help! 

Call us at (207)784-3800 or e-mail brenda@fontaineteam.com!

SMOKE & CARBON MONOXIDE DETECTORS - WHAT YOU SHOULD KNOW

This morning I had to scrape the ice off my windshield ....

I guess that means it is about time to turn on the heat.

 

With the heating season comes a higher chance of fire or carbon monoxide leaks...

so before you fire up the heat, check your smoke and carbon monoxide detectors! 

 

Here's a few things you should know

about Smoke and Carbon Monoxide Alarms...

 

If you are buying a home in Maine, at closing you are required to sign a document

that states you will properly install smoke and carbon monoxide detectors

in the home if they are not already there.  

Click here to view
Certification of Smoke and Carbon Monoxide Alarms



There are 2 types of smoke alarms - Photoelectric and Ionization. 

For the best protection you should use a combination of both types.

 

Smoke alarms within 20 feet of a kitchen or a bathroom

containing a shower or tub should be the Photoelectric type. 

 

A smoke alarm should be located on each floor including the basement 

and outside of or in each bedroom.

 

Smoke alarms should be installed on the ceiling or high on the wall because smoke rises.

 

Smoke alarms should never be painted.

 

Smoke alarms and carbon monoxide detectors should be tested monthly. 

They don't do any good if they aren't working properly.  

 

Carbon monoxide detectors should be placed in or just outside of each bedroom

 and one on each level of the home. 

 

Carbon monoxide detectors must be powered by the electric supply

(either plug in or hardwired) and have a battery backup. 

 

The few minutes and small investment it takes to install and maintain

smoke and carbon monoxide alarms is well worth it

to keep you and your family safe!

 

If you have questions about buying or selling real estate,

please call (207)784-3800 or e-mail brenda@fontaineteam.com.

 

 

LET'S TALK ABOUT TITLE INSURANCE

Whenever you purchase a home,

you will hear about

Title Insurance.

So what is Title Insurance

and why would you want to spend your money on it?

Basically...Title Insurance is a policy that guarantees the title to a piece of property

 is clear and protects against problems that might arise

connected to the title of the property.

Real Estate Agents will often hear things like....

"I knew the previous owner so I'm sure there is no problem"

"A title search was done, so why do I need insurance?"

 or

"It a brand new building, how can there be a problem?"

Photo by ilovebutter

Keep in mind, when you purchase real estate, you are not only purchasing the building

but also the land and the right to use the property. 

There were owners before the current seller

& the land existed before the building...

so it is possible for problems to arise years down the road. 

If you are financing your home purchase...you will most likely be required

to purchase a Lender's Title Insurance policy

to protect the lenders interest in the property. 

This protects the lender, but not any equity you may have in the property. 

An Owner's Title Insurance policy is an additional one time charge

that will cover your interest in the property as long as you own the property. 

You don't have to pay a premium every year. 

 It is paid once and you are protected if a valid claim arises on your property! 

How often is there really a problem with a title? 

 More often than you might think.  Usually the problems we run across

are small issues, but even small title issues can be costly to remedy

if you are not protected by Title Insurance.

If you are purchasing property, it is a good idea to speak with

your Real Estate Agent to decide if  you should consider Owner's Title Insurance. 

For more information about Title Insurance and other questions about

purchasing real estate, feel free to call Brenda at (207)784-3800 or

e-mail brenda@fontaineteam.com. 

BRENDA'S TOP 10 - WHAT NOT TO DO WHEN BUYING

You have decided to buy a house and everyone is 
offering advice on what you what you should do...
but just as important is
what NOT to do when buying real estate!

Brenda's Top 10 List of

What Not To do When Buying Real Estate

10.  Talk too Much 
 It is tempting to be best buddies with the seller,
but let your Real Estate agent handle the negotiations.

9.  Lie to your Loan Officer
It is tempting to exaggerate your income
to improve your chances of getting your dream home,
but the loan officer will verify all your financial information.  

8.  Ignore your Lender
Not getting your lender the documents and information that
they request will just delay or stop any progress on your loan.

7.  Cosign a Loan
Cosigning any loan for someone else
will directly affect your credit, so until you close on your loan...
don't cosign anything.

6.  Make Large Deposits
Of course you are trying to save for closing and all the expense
 that come with purchasing real estate, but your lender will want to investigate
the source of the funds on unusually large deposits.

5.  Panic
There is a lot involved in purchasing real estate and obtaining financing,
 but panicking will not make the process go any more smoothly.
 Surround yourself with professionals that you trust and let them work for you.

4.  Touch your Money
Changing banks, closing accounts or applying for new credit can all
cause problems when financing a real estate purchase. 
It is best not to do anything that changes your finances.

3.  Make a Big Purchase
It is tempting to run out and charge furniture for your new home...
or you may decide you need a new car...
but don't make any big purchase until after you close.
This will change your credit report and may jeopardize your closing. 

2.  Forget about Utilities
Nothing is more disappointing than closing on your new home and
going over to celebrate only to discover there is no electricity. 
 Don't forget to call to turn on utilities before you close. 

1.  Quit your Job
It seems obvious, but don't quit your job. 
 When the lender calls the morning of closing to re-verify your employment,
 they will cancel your closing if you are not still employed. 

For more information about purchasing Real Estate,
call Brenda at (207)784-3800
or e-mail brenda@fontaineteam.com. 

In the meantime, visit us at www.brendafontaine.com.

 

SHORT SALES - WHAT YOU SHOULD KNOW AS A BUYER

If you have been shopping for a house in today's real estate market,

you have probably come across some "short sale" properties. 

When buyers hear "short sale" the common reaction is to turn and run,

 but if you are prepared, purchasing a short sale can be a great way to purchase

 an affordable home with lots of potential for building equity. 

Before you consider purchase a short sale,

there are some things you should know:

• Timing - Despite the name, the timeframe for closing on a short sale is not short.  The current mortgage holder could take months to decide if they will accept or deny your offer.  Patience is key when purchasing a short sale. 

• Pre-Approval - Most banks will not consider a short sale offer unless the potential buyer provides a pre-approval letter.  Having that ready to go could speed up the process and help your transaction move along more smoothly.

• Financing - There are many types of financing out there.  Some types of loans are not suitable for purchasing a short sale.  If the property needs work, as short sales often do, they may not qualify for some programs.  Programs such as Purchase Plus Improvement Loans (203K) or Rehab Loans are perfect for short sales. Make sure you speak with your lender about the possibility of purchasing a short sale to make sure your chosen loan program will work for a short sale property.  Because short sales often take longer than other sales, you may need to update your information with your lender occasionally in order to keep your pre-approval. 

• Cash Purchases - If you pay cash for a short sale, you will usually need to provide a Proof of Funds letter from your bank showing that you have the cash available for the purchase before you offer will be considered.  Having this ready to go can be helpful in improving your chances of having your offer accepted. 

• Inspections & Repairs - In most cases your Real Estate Agent can help you write your offer so you can wait until the short sale is approved to do your inspections.  While inspections are important so that you know what you are purchasing, keep in mind that most homeowners are trying to sell as a short sale because of a financial hardship and probably don't have money to make repairs.  In most cases, you will be purchasing the property  "as is". 

• Other Offers - In many cases, the bank who holds the current mortgage will continue to accept other offers while they are considering your offer.  An Real Estate Agent who is experience in short sales can help you try to avoid this situation. 

• Foreclosure - Many properties that are being sold as a short sale are heading for foreclosure.  In most cases, an offer on a short sale home does not stop the foreclosure process. 

Basically, purchasing a short sale property takes patience and organization. 

If you are well prepared, understand what you are getting into,

want to build some sweat equity and have lots of patience...

a short sale could be a perfect way for you to purchase a house at a great price! 

If you have questions about short sales, please call us at (207)784-3800

or click below to send us an e-mail.  

 

WHAT IS MARKET VALUE?

What is the true value of your home?

There are many types of value...

     The value for the insurance company might be what it costs to replace the home
     The value for the lender may be what you owe on the home
     The value for the owner may be what they have invested in the property

but the most important value when selling your home is

MARKET VALUE

So what is Market Value? 

     It is NOT what the owner paid for the home
     It is NOT the amount of money the owner has spent on repairs & maintenance
     It is NOT what it will cost to pay off the mortgage(s)
     It is NOT the tax appraisal amount

Market Value is the most likely price that a piece of property or home can realistically be sold for...in other words

So how do you find out the Market Value of your home?  An experienced Real Estate Agent can research the market for you.  They will look for the sale price of similar homes in your area, as well as homes listed for prices that did NOT sell.  Aligning your price with the prices of similar home in your area that actually SOLD in a timely manner is key to getting your home sold faster.

When a  Real Estate Agent provides you with an estimate of  the market value of your home,

 keep in mind the Agent is just the messenger.  You as the seller, decide the listing price of your home, but the market will determine the Sale Price.

Click here to find out the Market Value of your home:

TOP 5 REASONS TO GET PRE-APPROVED FOR A MORTGAGE

Is it really important to get pre-approved for a mortgage

before you start viewing homes?

I can't count the number of times a potential buyer has said something similar to one of the following things when I first meet them...

        *    "I just want to look at some houses...getting a mortgage is not going to be a problem." 

        *    "I have an uncle who works at the bank and he said not to worry about it."

        *    " I talked to a lender 2 years ago, I am sure I will be okay."

So why should you get pre-approved

before you start viewing homes? 

Here is our Top 5 Reasons!

1.  Avoid Heartbreak - Not much is worse than finding your dream home and then finding out you can't get a mortgage for the price of the home.  Getting pre-approved will not only tell you how much of a mortgage you qualify for, but also how much you are comfortable spending.  


2.  Plan Your Down Payment - There are lots of loan programs available, each requiring a different down payment and costs associated with obtaining the mortgage.  Getting pre-approved will help you plan for those costs.


Photo by ilovebutter

3.  Credit Surprises - The credit reports used by most mortgage companies are different than the report you can get online.  Getting that report from your lender early will give you time to correct any mistakes on your credit report or even fix thing to improve your credit score. 

4.  Increase Your Negotiating Power - With the uncertainty in the economy and real estate market, sellers want to be assured that you can afford their home before accepting your offer.   Many sellers will not even consider your offer without a pre-approval letter. 

5.  Don't Delay Your Offer - The basic terms of your financing need to be contingencies of your offer.  In Maine, the purchase and sale offer includes...

type of loan

% of purchase price

interest rate

loan term

closing cost needed by seller

If you have to wait to meet with the lender after you find your dream home, another buyer could negotiate a contract before you are able to gather the information you need to make an offer. 

Buying a home can be stressful.  Proper planning, including a pre-approval will make the process smoother and more enjoyable.  If you have questions or would like to schedule a consultation with a buyer agent, we are happy to schedule a meeting.  Call us at (207)784-3800 or e-mail us at brenda@fontaineteam.com.

KNOCK YEARS OFF YOUR MORTGAGE

Who wouldn't want to knock a few years off the term of your mortgage and save thousands in interest? 

You can reduced the principal of your loan

which will knock payments off the end of your mortgage

by making one extra payment each year. 

You don't even have to pay it all at once. 

You can divide your monthly mortgage payment by 12

and apply that amount to your regular payment each month. 

photo by Images_of_Money

If your monthly mortgage payment is $700...

          700 ÷ 12 = 58.33

Add an extra $58.33 to your regular $700 payment.  Pay $758.33 each month to add up to one extra payment for the year! 

You can also opt to make one extra payment as a lump sum...

maybe when you get your tax refund.  Any extra money you can send will make a difference,

 so if you can't make a whole extra payment, figure out what you can afford...anything helps!

Make sure you specify the extra money you send is applied toward your principal

and be sure to check with your mortgage holder

to make sure you don't have any pre-payment penalty. 

If you have questions, or would like more information about saving money on your mortgage,

 speak with your lender or contact us by clicking below!

SELLER'S PROPERTY DISCLOSURE IN MAINE

If you have decided to sell a home in Maine,

what are you required to disclose to the buyer? 

As a buyer, what disclosures should you expect from a seller?



Photo by Cambodia4kidsorg



First and foremost, you want to be honest about any information you are giving a potential buyer.  If they buy your house, they will most likely discover things you did not disclose once they move in.  If you did not disclose something you were aware of, or were not honest about something...you are opening yourself up for potential liability.  Yes, even after closing!




Make sure the property disclosure you get is filled out completely.  If something is not answered or if you have questions about something you see, ask your agent to find out more information. Keep in mind, the seller may not know the answers to some of your questions...that's where a good inspector comes into play!

In the State of Maine the following items are required to be disclosed on the Seller's Property Disclosure Form:

1.  Information on Private Water Supply
2.  Information on Heating System(s)
3.  Information on Waste Water Disposal System
4.  Information on any Known Hazardous Materials
5.  Information on any Known Material Defects

Information should also be provided about Lead-Based Paint, Arsenic in Water and Arsenic in Wood.

For details on any of these items or information on how to protect yourself as a Seller or Buyer, call Fontaine Family - The Real Estate Leader anytime at (207)784-3800 or