Asifa Zia -The Realtor YOU want

If your budget is tight, refinancing to lower your monthly payments might seem great, but it can hurt you in the long run. By AJ Smith Calculating how much house you can afford is, for many of us, one of the toughest decisions we face in adulthood. How we finance that home can be just as challenging. In an ideal world, we would get it right the first time. But refinancing offers a chance to do it again -- in many cases to lower the interest rate or payments, or to shorten the term. While there is potential to save, refinancing is a complicated process and  not the right decision for everyone . Check out why now may  not  be the time for you to refinance your home. 1. You Don't Plan to Stay Long : It's a good idea to figure out how long you plan to stay in your home and be honest with this prediction. If you hope to be moving before the "break-even" period, or number of months it will take to make up the costs of closing a new loan, refinancing is not for you. It

                                        Here’s a variation on a common question about FHA home loans: “I have read in several places on the web that it is possible to finance your closing costs into a FHA loan. However, many of these sources are at least a couple of years old. Is this possible?” The FHA official site offers some helpful information about FHA single family home loans and their associated closing costs. At www.HUD.gov on the page titled Let FHA Loans Help You, you’ll read the following: “FHA might be just what you need. Your down payment can be as low as 3.5% of the purchase price, and most of your closing costs and fees can be included in the loan. Available on 1-4 unit properties.” Some of your FHA loan closing costs may be financed, and some may--after being negotiated between buyer and seller--be paid by the seller within the boundaries of the FHA loan program’s rules. The borrower also has the option to pay some closing costs out of pocket.  In situations where the

When real estate markets are moving quickly, sellers sometimes become uncompromising. Why make concessions if your home is leading the neighborhood's Ms. Popularity contest? This may lead buyers, caught in the frenzy of a bidding war, to become reckless, yielding one of the most important aspects of the purchase process: the home inspection. What an Inspection Won't Do Let's face it: We don't buy homes frequently, so the process can be a bit confusing. The home inspection is one of the most commonly misunderstood processes in the real estate transaction. Just as a home appraisal won't tell you that the heater is about to go kaput, a home inspection won't tell you what the home is worth. These are two different processes, initiated by two different parties. The appraisal is bank-ordered. The lender uses the appraisal to ensure that the home is worth what you've promised to pay for it. While a large home inspector training institute likes to claim t

Finding the right neighborhood to buy a home involves much more than affordability -- such as tax rates and quality schools. By  AJ Smith When most of us  shop for a new home , affordability is at the top of our "important requirements" list. While this is  clearly an important factor , finding the right neighborhood involves a slew of other considerations. Here are some of the factors to think about before settling on your new location. Cost:  Your income, credit scores and debt combine with the down payment, mortgage term, interest rate and current real estate market to determine how much house you can afford.  Property taxes  also have an effect on housing cost by neighborhood so be sure to investigate if the area is getting a steal or getting the short end of the stick when it comes to return on tax dollars. It's a good idea to think about the places you visit frequently and how close or far away they will be.  (You can also  check your credit scores for free on

                           credit.com By  Scott Sheldon Are you considering buying a home this year? Most would have you believe that you need at least a 3.5 percent  down payment  to get a mortgage. But there are actually a few ways you can get a home with 100 percent financing. Here's what you'll need to get the keys:  a good credit score  -- a 700 or better with a  clean payment history ; consistent income, with a solid work history for at least the past two years; and an ability to afford a mortgage payment. Conventional Loans What it is:  In order to buy a house with a conventional loan, you'll need at least a 5 percent down payment. The 5 percent down payment can come in the form of a gift, and you no longer need to have a minimum contribution to the down payment. The entire down payment can be a gift as long as you're buying a single-family home. And single-pay mortgage insurance is a little-known benefit If you have strong income and can offset a higher s

                        Most real estate agents have tales of clients who just can't seem to look beyond a home's minor flaws, be they ratty floors or sagging screens. Then, there are those clients who can envision the possibilities of a house that's seemingly being held up by a prayer. If you fall into the latter category but are short on cash, here's a solution: a government-backed loan that covers not only the purchase price of the home, but the cost to rehab it as well. It's a loan provided by the Department of Housing and Urban Development, known as the Section 203(k) Program. The Possibilities The 203(k) loan is best known for allowing the borrower to rehab and repair a home. But it has other uses as well. Borrowers have used the loan to: Convert single-family homes into multifamily dwellings, with up to four units. Convert multi-units to a single-family home. Move a house to purchased land. If you've found a house that requires just a b