The Smart Way To Go From Renting To Owning

If you've watched any news media over the past few years, you know that the housing market is sluggish. From a seller's viewpoint, that makes life a lot harder. But for a buyer, it can mean a wider world of options and opportunities. For those want to become owners rather than renters, it's important to make smart decisions.

Many factors contribute to the real estate market's current sluggishness, and one of them is the fact that lenders are reluctant to give loans to homebuyers. After the housing market crisis, it's not surprising that they would be more demanding in their lending practices, but for those eager to buy, it means that you need to present an immaculate financial profile.

There's no limit to the amount of real estate browsing you can do - either online or in your ideal neighborhood - but before you get serious about purchasing a home, take these tips into consideration.

* Pay down your debt. Before you even apply for a mortgage, it's important that you reduce your debt load. The smaller it is, the better for your debt-to-income ratio, which lenders use to determine how much they'll allow you to borrow. Items like car loans, child support and alimony, credit card bills and student loans are all factors that the lender will consider. Paying down debt can have the added benefit of improving your credit, as well.

* Check up on your credit. Having good credit is another essential element in smart home buying - it can affect how lenders view you, and the terms of your mortgage. The better shape your credit is in, the better your potential to get the mortgage of your dreams. Every year, you're entitled to a free credit report from one of the three major reporting agencies, like Equifax. Use it as a starting point that will give you an idea of your overall credit picture. Look for areas that can be improved upon and track your progress by checking your credit again after you've put in some work to bring it up.

* Make the biggest down payment possible. The era of zero-down is over, and for good reason. A down payment - and a sizeable one - can help ease the strain of a mortgage in coming years. A minimum of 20 percent down is a good idea, and if you can do more than that, so much the better. If you don't think you can afford a down payment of 20 percent or more on a house you're considering, it might be time to shop around for a less expensive home that is more budget friendly.

* Be an informed buyer. There is a seemingly endless list of things to know about buying a home, and the faster you want to buy, the faster you'll need to learn it all. Be sure you know the ins and outs of items like closing costs, adjustable rate versus fixed rate mortgages, how your credit report affects mortgage rates and the documentation you'll need to get a mortgage. The more you know, the better equipped you'll be to make smart decisions that will make you a happy homeowner for years to come.

Adapted from ARAContent

Beware of Foreclosure Rescue Scams

With the large number of homeowners looking for guidance during the foreclosure process, foreclosure related scams have erupted onto the real estate scene. These "foreclosure rescue companies" claim they will help save your home, but actually they are only out to make a profit - at your expense.

If you are facing a foreclosure, here are some "Red Flags" to watch out for:

- Asks for money upfront before providing any service.
- Instructs you not to contact your lender, lawyer, housing counselor, family, friends or others.
- Asks for mortgage payments to be made directly to his/her company or a bank account set up by his/her company, rather than your lender.
- Requires payment only in the form of cash, cashier's check or wire transfer.
- Promises to stop the foreclosure process, no matter the circumstances.
- Advises you to transfer your property deed or title to his/her company.
- Offers to fill out paperwork for you.
- Asks for something to be done immediately and without delay. This includes pressuring you to sign paperwork that you have not had the chance to read thoroughly or do not fully understand.
- Encourages you to lease your house and buy it back over time.
- Offers to buy your house for a fixed price that is not set by the housing market at the time of sale.
- Asks for you to give a power of attorney.
- Asks for signatures on a grant deed or deed of trust.
- Asks for signatures on a document that is incomplete or has lines left blank.
- Fails to provide copies of signed documents.
- Refuses or fails to put an oral promise in writing.

If you have been a victim of a foreclosure-related scam or approached by a company asking for the items above, you may report the company to the following organizations:

California Attorney General: http://ag.ca.gov
California Dept. of Real Estate: www.dre.ca.gov
Dept. of Housing & Urban Development: www.hud.gov
Your local Better Business Bureau: www.bbb.org

Source: California Association of Realtors

3 Loan Servicers Penalized for Mortgage Modifications

Three servicers have had their federal incentives withheld for not making the grade in a federal program that modifies mortgages to help families keep their homes, says President Obama's monthly "housing scorecard."

Wells Fargo Bank, Bank of America and J.P. Morgan Chase Bank are "in need of substantial improvement" in the Making Home Affordable Program, which to date has permanently modified more than 600,000 mortgages. Issues ranged from errors in calculating homeowners' incomes to ineffective reporting to the program, which is voluntary.

It's possible the Treasury may permanently reduce incentives if the issues aren't addressed "within a reasonable time," the report states.

Many critics say the program is not meeting expectations. The government, which continues to defend the Making Home Affordable Program, initially expected the program would help an estimated 3 to 4 million people.

Don't Miss Palm Springs Restaurant Week

Palm Springs Restaurant Week is a 10-day culinary celebration featuring almost 100 restaurants in the Coachella Valley from Palm Springs to Indio! It is the perfect time to visit your favorite restaurant or try something new, as chefs prepare unique three-course, prix fixe menus priced at either $24 or $36 depending on the restaurant, which will include appetizer, main course and dessert (beverages, tax and gratuity are additional).

Participating restaurants and attractions in 2011 include Arnold Palmers Restaurant, Cello’s, Citron, Copley’s on Palm Canyon, Hog’s Breath Inn, Johnny Costa’s Ristorante, Las Casuelas Nuevas, Palm Springs Aerial Tramway, Peaks Restaurant Top of the Tram, Tommy Bahamas Restaurant & Bar, Vicky’s of Sante Fe and Wang’s in the Desert, just to name a few.

For a complete list of participating restaurants and menus, as well as special hotel packages and other offers, visit www.palmspringsrestaurantweek.com

City of La Quinta Picnic & Birthday Bash

The City of La Quinta is celebrating their 29th Birthday on Saturday, April 30th beginning at 10:00 a.m. at Fritz Burns Park.

The Birthday Party, City Picnic, and Youth Festival will be a high energy day of food, games, and entertainment. Activities will include kids carnival games with prizes, interactive booths & games from several local businesses, bounce houses, a Velcro wall, a Tiki Island wall climb, water attractions (including a dunk tank and Water Wars balloon game), giveaways, live dance and musical performances, food, drinks and much more! It will be a fun day for the whole family.

The Fritz Burns Pool will be open for free swimming, for the duration of the City celebration, with no entry fee!

Fritz Burns Park is located at the corner of Avenida Bermudas & Avenue 52, in La Quinta. This FREE event invites all ages to celebrate with the City of La Quinta.

Notice of Right to Cancel - Explanation for Borrowers

One of the common documents a borrower may encounter in the loan document package during escrow is the “Notice of Right to Cancel.” This document is also referred to as the “rescission document” or the “3-day Notice of Cancellation.” The document states that the borrower can cancel or rescind their loan transaction within three business days after signing the loan documents. Many borrowers are confused as to when the right to cancel applies and exactly what day the borrower can rescind their approval of the loan transaction.

The right to cancel applies to refinances or “home equity lines of credit” extended on a borrower’s “primary residence.” The right to cancel does not apply to borrowers who are purchasing a home, borrowers who are refinancing their second home, or on investment or rental properties.

There are two important dates on the document. The first is the date of signing. The second is the rescission date, or final date to cancel. In some cases, the dates are already printed on the Notice of Right to Cancel. However, many lenders prefer to leave the dates blank on the document because the exact date of signing may not be known. In this case, the lender typically includes instructions on the document for determining the correct dates or they may be a separate instruciton sheet included with loan package.

The borrower has the right to cancel until midnight on the third day after signing. To determine the correct rescission date after signing, the borrower or his qualified escrow and loan document-signing agent (Notary Public) will count three days beginning with the first day following the signing date (the transaction date is not counted). Sundays and legal federal holidays are not counted, and are therefore skipped. Saturdays are counted because banks conduct lending business on this day. To help with the determination of the correct rescission date, free “rescission calendars” are available and can be found via the Internet.

Homeownership Still Smart Financial Decision

According to a recent study conducted by Harris Interactive for the National Association of Realtors (NAR) homeownership still ranks high among the list of smart financial decisions.

Ninety-five percent of owners and 72 percent of renters believe that it makes more sense to own a home than not. Seventy-seven percent of homeowners believe that homeownership will help them meet their long-term financial goals.

Also, renters rank their quality of life lower than homeowners. Just 33 percent of renters report that they are "very" or "extremely" satisfied with their family life while more than half of home owners do so.

The majority of homeowners also agree that owning a home means a stable atmosphere for raising a family.