Friday, May 30, 2014

Life After Foreclosure?

Think you're doomed after a home foreclosure? There may be some good news for you.

While you'll probably have to wait seven years to obtain a conventional mortgage, Freddie Mac, Fannie Mae, and the FHA say they only require a three-year waiting period post-foreclosure. Granted, this is dependent on the circumstances surrounding the foreclosure, but there may be some hope for you. Some requirements may include a large down-payment [20% or more], and you may be required to pay higher than market interest rates, but there's still the potential for homeownership in the near-er future than you may have expected. Lease-purchase options are another possibility if a foreclosure lies in your more recent past, but you still want to buy a home. A knowledgeable realtor will be able to talk to you about these options in more depth.

Wednesday, April 16, 2014

Pre-Approval or Pre-qualification


If you’re like most potential home buyers, you’ll need a mortgage. That said, as complicated and often lengthy as the whole process is, there are a few things you can do ahead of time to make the whole thing go more smoothly. One of those things is a mortgage pre-approval (not to be mistaken for a pre-qualification). 
First, let’s talk about loan pre-qualification. The simpler of the two, a pre-qualification looks very broadly at your financial situation and gives you a general idea of how large of a loan you may qualify for. It doesn’t look at your credit report, or your financial situation in-depth. It can be a helpful step, and an opportunity to talk to a lender about your financial and home-buying goals. Since the pre-qualification process is so simple, and doesn’t take all of your financial information into account, it carries a lot less weight to a seller than a pre-approval.

A pre-approval is a much more involved process, which includes an extensive financial background and credit rating. You’ll fill out a mortgage application, and generally have to pay an application fee. This gives a specific mortgage amount for which you are approved, and at times you are able to lock in a specific interest rate. After pre-approval, you’ll receive a conditional commitment from the lender, which will allow you to look at homes at or below that price level. This is obviously a huge advantage with a seller, since you’re automatically one step further along in the process.

Another advantage to completing either of these steps is that you’ll know in advance how much you can afford, and you’ll be able to move quickly when you find the right place. In a competitive market, pre-approval can be the difference between getting the house of your dreams, or losing out. 

Monday, February 17, 2014


Periodically, we’ll write posts on some basic economics—some will be mini history lessons, so you know how we got to where we are now, others will be about things you hear on the news (which is especially important as we’re coming into an election year!), and still others will be about economic principles we think everyone should be familiar with.

Our goal is simply to give you access to understandable information, and hopefully help you to become a more confident decision-maker.

Stay tuned!

Monday, January 6, 2014

Cheap Ways to Increase Your Home's Curb Appeal

With real estate season fast approaching, here are a few quick, cheap ways to increase your home's curb appeal, according to Kiplinger:

Regardless of your budget--

1) Make a plan! Your goal is to do things that will complement and enhance the appearance of your house, not clash with it.

2) Take some time to do your research! If you're doing landscaping, make sure that the kind of plants, flowers, etc., make sense in your yard. A cactus is probably not a good choice in Wisconsin. Similarly, if your yard is shaded most of the day, don't choose plants that require lots of sunlight. Doing some research will require some time up front, but it can definitely save you money!

For $100 or less--

1) Create a welcoming entrance with a couple of large potted plants.
2) Plant a few trees.
3) Plant some wildflowers.

Remember to keep it simple--a few well-thought additions can make a big difference when you're trying to sell your house!