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Torang Nazmi's Blog

By Torang | Save $10,000's | Broker in 75063
  • How to Qualify for an FHA Backed Loan

    Posted Under: Home Buying in Dallas, Property Q&A in Dallas  |  April 5, 2013 8:37 AM  |  486 views  |  1 comment

    1

    Make payments to your creditors on time. You should have no more than one late payment of 30 days or more delinquent in the past two years (preferably none). If you rent or have an existing mortgage, make these payments on time for at least a year before applying for FHA backing. The FHA is flexible when it comes to your credit score up to a point. If you have a score under 580, you may not be able to qualify or you may have to come up with a down payment of at least 10 percent of the purchase price of the house.

    2

    Expect to wait for some time if you have a recent bankruptcy or foreclosure on your credit history. As a general rule, you cannot qualify for an FHA backed loan for two years after a bankruptcy and for three years after a foreclosure.

    3

    Establish a stable employment and income history. You should have a steady income for the past two years. Ideally, your primary employment should be with a single employer. Your income should be level over the two years or have increased during that time. Be prepared to document your employment with your employer’s contact information or with pay stubs, W2 forms and copies of your tax returns. If you are self-employed you will need your tax returns for the past three years, plus an up-to-date profit and loss statement.

    4

    Select a property within your means. The FHA requires that your mortgage payment be less than 30 percent of your gross (pre-tax) income. Be sure to include and document all sources of household income, not just wages from your primary job.

    5

    Contact an approved FHA lender. If you aren’t sure how to locate a lender, you can use the FHA online lender list search facility at hud.gov. It’s a good idea to talk to a lender before you start the application process with the FHA. Most will be willing to answer questions and help you with the application process.

    6

    Obtain the FHA application packet, which is available online at hud.gov or from FHA-approved lenders. Complete the application forms and submit them to the FHA along with the required documentation.

    source : http://homeguides.sfgate.com/qualify-fha-backed-loan-2450.html

    TORANG NAZMI

    ☎ 972-897-5718

    http://www.aatrealty.com/

    Broker / Owner of AATRealty

  • How to search for a house by using MLS?

    Posted Under: Home Buying in Dallas, Home Selling in Dallas  |  April 3, 2013 12:18 PM  |  654 views  |  No comments

    Write down the house’s MLS number on a piece of paper. This is a number typically included on an advertisement or flyer marketing a property, and usually includes the letters "MLS." This number will help you search for the listing.

    2

    Go online to http://www.aatrealty.com/

    3

    Click the link “Search by MLS #,” located below the search box at the top of the home page.

    4

    Enter the MLS number in the form that opens and click “search.” This will bring up all the current listings with that MLS number.

    5

    Select the house that best matches the home you searching for, beginning with location. Click on the link for the property to view detailed property information.

    TORANG NAZMI

    ☎ 972-897-5718

    http://www.aatrealty.com/

    Broker / Owner of AATRealty

  • What Is the Definition of Market Value?

    Posted Under: Home Buying in Dallas, Home Selling in Dallas, Property Q&A in Dallas  |  April 3, 2013 11:58 AM  |  406 views  |  No comments

    Buyer and Seller

    The NRAI's definition assumes certain things about the buyer and seller; according to the institute, the buyer and seller are both motivated to close the deal; they're both well-informed; they have advice if they need it; and they're both acting in their own best interest.

    Market Analysis

    To translate the definition into a measurable number, appraisers use comparative market analysis. A CMA requires comparing the property under appraisal with similar homes or lots that have sold in the past year. Similar, in this case, means roughly equivalent in size, style, age and condition and ideally in the same neighborhood or a similar neighborhood; a house by vacant, foreclosed properties isn't in the same situation as one on a fully occupied street.

    Special Consideration

    To represent true market value, the hypothetical sale price must not be influenced by creative financing or sales concessions. As appraiser Ryan Lundquist puts it, homes sold to family members for below the going rate don't represent true market value. Neither does a home selling for $250,000 if there's a $50,000 rebate to the buyer.

    Time

    Another part of the NRAI definition is that market value requires a house spend a reasonable amount of time on the open market. A house that has to be sold quickly to pay off a debt doesn't represent fair market value; a house that sold after one day on the market may have been priced too cheaply, Lundquist states.

    Race, Color, National Origin

    According to the NRAI, a valid "market value" appraisal must not be based in any part on the race, color or national origin of the buyers, or the race, color or national origin of any of their new neighbors.



    source : http://homeguides.sfgate.com/definition-market-value-1514.html

    TORANG NAZMI

    ☎ 972-897-5718

    http://www.aatrealty.com/

    Broker / Owner of AATRealty



  • Market Value Vs. Appraised Value

    Posted Under: Home Buying in Dallas, Home Selling in Dallas, Property Q&A in Dallas  |  April 3, 2013 11:54 AM  |  416 views  |  No comments

    Who Decides the Property Value?

    For instance, a seller lists his property for $300,000. The buyer offers the seller $240,000. The seller accepts the buyer's offer. Who decides what the property is really worth? According to the buyer and the seller, the market value of that particular property is worth the $240,000 price they both agreed on. However, bank financing is involved. So an appraiser is brought in to establish the appraised value. The appraiser factors in the recent property sales in the neighborhood, the features and functionality of the home, the condition of the home and a number of other details. The appraiser decides that the property is worth $260,000. The appraised value is the one that the bank will use for its lending purposes. In most cases, the appraised value does override the market value.

    Comparing Market Value to Appraised Value

    Market value can be determined by either licensed or unlicensed individuals. Yet only a certified or licensed individual can perform a property appraisal. If the market value is calculated by a licensed real estate agent the report may include the following: active property listings, pending property sales, sold properties in the last 12 months and expired listings. In contrast to a real estate agent, an appraiser does not represent any particular person. An appraiser simply performs the service of determining the property’s appraised value. Appraisers do not represent an individual’s interests regarding a property.

    An Appraiser's Role

    An appraiser simply performs the service of determining the property’s appraised value. Appraisers do not represent an individual’s interests regarding a property. Yet the appraisal report should be written in a clear format allowing the reader to follow the appraiser’s determination.

    Can a Property Be Worth More Than the Appraised Value?

    Unlike the market value, the appraised value is not necessarily the price a property will be bought or sold for. Rather it is a guideline in the selling or buying process. Generally, a property will not be sold for more than the appraised value, especially if a lender is financing the purchase. Yet the property may in reality be worth more than the appraised value to a buyer and a seller.

    How Does the Market Value Differ?

    Additionally, appraisal reports are written for various purposes such as: insurance, home loans, tax loss, estates, liquidation and net worth. So the market value and appraised value can vary somewhat depending on the purpose of the appraisal and who performed it.



    source : http://homeguides.sfgate.com/market-value-vs-appraised-value-1206.html


    TORANG NAZMI

    ☎ 972-897-5718

    http://www.aatrealty.com/

    Broker / Owner of AATRealty


  • What Happens When Your Home Goes Into Foreclosure?

    Posted Under: Home Buying in Dallas, Foreclosure in Dallas, Property Q&A in Dallas  |  March 29, 2013 9:50 AM  |  673 views  |  No comments

    Types

    Depending on your state's laws, your lender can use either judicial or nonjudicial foreclosure, the Nolo legal website states. In a judicial foreclosure your lender must go to court and prove that he should be allowed to sell your house. Nonjudicial foreclosures--used in California, among other states--are faster and less expensive, because the lender doesn't need a judge's approval. In California nonjudicial foreclosure only takes about four months from filing a notice of default through the foreclosure sale.

    Time Frame

    Under California law, your lender must meet with you about avoiding foreclosure at least 30 days before starting the nonjudicial process. When that time has elapsed, she can file a notice of foreclosure with the county where your property is located; she must then inform you of the filing. You get a three-month grace period before she can schedule the sale, and a 20-day period after that before the sale can actually be held.

    Procedure

    The judicial foreclosure process takes much longer and has many more steps, Nolo states. First the lender files a lawsuit, then he notifies you of the filing. You have a deadline to respond--30 days in California--if you want to fight the foreclosure in court. After you respond, the judge will schedule a hearing in which you and your lender will state your case. If the judge decides in favor of your lender, the lender will set the sale date and notify you. It can take a year or more between filing and selling.

    Solutions

    The foreclosure sale isn't inevitable. If you can put together enough money to pay off your back mortgage debt--including interest and your lender's legal expenses--you can end the foreclosure process. In California, in a nonjudicial foreclosure, for instance, you have up until five days before the sale to wipe out your debt.

    Considerations

    No matter what your lender or anyone else tells you, nobody can make you leave your home until after the foreclosure sale. If the property is sold, ownership will transfer to a new owner; otherwise ownership reverts to the lender. In either case, Nolo states, you become a tenant and the new owner--whether buyer or lender--must use the procedures specified under state eviction law to get you out. In California, with judicial foreclosures you have a one-year right of redemption, during which time you can get your home back by paying the balance of the loan, plus fees and court costs.

    Warning

    If the foreclosure sale doesn't pay off your mortgage debt, CNN states, your lender can sue you for the remaining debt by filing for what's called a deficiency judgment. The rules vary from state to state: In California, lenders who use a nonjudicial foreclosure can't sue for a deficiency judgment afterward. California lenders can claim a deficiency if they use judicial foreclosure, but that process takes so much longer, few lenders attempt it.

    source : http://homeguides.sfgate.com/happens-home-goes-foreclosure-9120.html

    TORANG NAZMI

    ☎ 972-897-5718

    http://www.aatrealty.com/

    Broker / Owner of AATRealty

  • FHA House Appraisal Guidelines

    Posted Under: Home Buying in Dallas, Home Selling in Dallas  |  March 12, 2013 1:22 PM  |  449 views  |  No comments

    Basements and Crawl Spaces

    Appraisers focus on water in the basements and crawl spaces, looking for evidence of damp soil and damage to appliances kept in this area. If your house has a sump pump, it must work properly when inspected. Crawl spaces must have proper ventilation, and the entrance must be free of obstruction. Additionally, the crawl space must be at least 18 inches high.

    Electricity and Heating

    Your electricity must be on at the time in appraisal so that all outlets and electrical items in the house may be inspected. Electrical boxes may not have exposed wires. All rooms must receive heat, and that heat may come from a central system or a wall unit. Your heating system must generate a temperature of at least 50 degrees, considered the minimum for comfortable living. The controls for your heat source must also work. Heat sources such as wood-burning stoves, solar heaters, wall heaters, floor heaters and space heaters are subject to inspection.

    Sewage

    The appraiser must determine if the house’s sewage lines connect to the public lines (owned by the city), community lines, or are self-contained (septic tank). Each type of sewage line must meet its own FHA standard. Leaking sewer lines or septic tanks would force an assessor to order repairs before the sale. In some cases, the appraiser may even recommend that you not buy the home. Sewers may not drain under concrete.

    Other Notes

    FHA appraisers inspect a home for pests, including termites, and new homes must come with a one-year guarantee against termites. All parts of the home must be inspected for lead-based paint if the home was built before 1978, and if there is evidence, repairs will be ordered. FHA appraisers also determine noise levels for homes that sit near airports and train tracks, determine a home’s flood designation (which may require you to buy separate flood insurance) and determine the safety of any oil and gas wells on the property.

    source : http://homeguides.sfgate.com/fha-house-appraisal-guidelines-1534.html

    TORANG NAZMI

    ☎ 972-897-5718

    http://www.aatrealty.com/

    Broker / Owner of AATRealty

  • Three Different Types of Foreclosures

    Posted Under: Home Buying in Dallas, Foreclosure in Dallas, Property Q&A in Dallas  |  March 7, 2013 2:34 PM  |  382 views  |  No comments

    Three Different Types of Foreclosures

    Strict Foreclosure

    Mortgage defaulters living in Maine, Vermont and Connecticut should be familiar with strict foreclosures, since lenders in these states are among the few that can use this type of foreclosure process. A strict foreclosure requires lenders to get approval from the court to recover property so that they can put it up for sale. One of the requirements to obtain approval is that the property must be worth less than the mortgage balance. When the court approves a strict foreclosure, it gives the homeowner a deadline to pay back the mortgage debt. If the homeowner fails to pay by the set deadline, then the lender immediately regains ownership of the property.

    Non-Judicial Foreclosure

    In a non-judicial foreclosure, lenders enforce their right to foreclose on a property without a court’s approval, as long as it is carried out under the terms of the power of sale clause featured in the deed of trust and the state’s foreclosure laws. States such as California, Texas and Michigan allow lenders to use this streamlined foreclosure process. Homeowners should understand that in a non-judicial foreclosure, the lender may only be required to send them one or two notices before their home is sold in a foreclosure auction. Consequently, homeowners get only a small window of time to make arrangements and keep their home.

    Judicial Foreclosure

    The judicial foreclosure process may be used by lenders in states all across the country. This type of foreclosure requires the lender to rely on the court to foreclose on the property. The lender must file a lawsuit and a lis pendens notice against the homeowner in order to obtain a judgment for the amount owed. Homeowners are given proper notice of the lawsuit and an opportunity to pay back what is owed. However, failure to pay the debt will result in an order from the court allowing the property to be sold in a public auction held by a representative of the county court or sheriff’s department.

    TORANG NAZMI

    ☎ 972-897-5718

    http://www.aatrealty.com/

    Broker / Owner of AATRealty

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