Brooklyn Real Estate Q&A and Info

If you are a New York City, New York State or Federal employee, and you want to purchase a home, you’re in luck. Through its conservative funds management, New York City’s Municipal Credit Union (MCU) has plenty of money to lend even though most financial institutions are hurting because of today’s economic woes.

For 92 years, MCU has been providing its members with everything from checking accounts, credit cards and auto loans to fixed, adjustable and jumbo home loans.  MCU has several loans tailored for the needs of the first time homebuyer that include minimal down payments and very competitive rates.

Are you looking to purchase an investment property?  MCU also offers mortgages for multifamily homes for properties up to 4 families.

For its members that have credit problems, MCU has credit counseling that can help qualifying members get on the right track towards financial health and home ownership.

MCU’s mission is to help civil servants purchase homes, and they have the money and several different mortgage products to help them do just that. 

For more information about the Municipal Credit Union, go to their website at www.nymcu.org.

The mortgage doom and gloom that’s circulating around these days has scared a lot of buyers (and sellers) out of the market. The truth is, this is a great time to buy (and if you need to sell your home, its a great time to sell) thanks to FHA.

The volume of FHA loans being written has tripled, according to Realty Times, in the last few months, and as long as you can meet the FHA guidelines, there is still money to be had.  And FHA is not just for first time home buyers.

So, what do you need to qualify for an FHA Loan?

1. Right now, you need to be able to put 3% down. Starting January 1, 2009 the requirement will be 3.5%.
2. A credit score of 550 or better.
3. You can still use a co-signor (or non-occupant co-borrower) to purchase a home with an FHA secured loan.
4. In Brooklyn, the FHA loan amount maximum for a single family home or condo is $729,750, a two family home $934,200, and a three family home loan for no more then $1,129,250.
5. Verifiable income.

So, don’t let the dire news scare you.  If you’ve got the income, the credit score and the down payment, get out there and buy a home.  Interest rates are extremely low and you can get a fantastic house at bargain basement prices.

Want to know more?  Give me a call at 917-544-2662, or click here to email me.

Yes, if you are planning on buying a multi-unit dwelling and renting out one or more apartments (or the entire property), then you will be a business owner.

Why do I say that?  Well, the definition of a “business” according to Dictionary.com “is a person, partnership, or corporation engaged in commerce, manufacturing, or a service; a profit-seeking enterprise or concern”.   If you own a property and intend on renting all or part of it for a profit (or to be able to make your mortgage payments), then you are providing a service to your tenants for the purpose of making money.  Or in other words, you’re in business!

Well, you might me be asking yourself, “What does it matter?”  Well, it matters a great deal.  If you want to be a successful landlord then you need treat it like a business.  What are some of the things you need to know to operate a successful Residential Property Rental Business.  Here is a list of just a few:

-How do you find good tenants?
-What do you do if a tenant doesn’t pay his rent?
-How many payments can a tenant miss before you can evict?
-Do you pay taxes on the money you collect from your tenants?
-What services are you legally obligated to provide for your tenants?
-What are the landlord tenant laws in Brooklyn?
-Who is responsible for repairs?

These are just a few questions that anyone who wants to rent out residential property should know the answer to.  Unfortunately, I’ve seen many people buy multifamily houses without ever giving serious thought about the difficulties that can come when you have to deal with rental tenants, and that’s a big mistake.

Owning rental property is a great way to generate income now, and build up equity for the future, however it comes with many challenges. Make sure you are up to them by doing your homework before you take the plunge. After all, you’re going to be a business owner, and you don’t want your business to fail.

To get you started, here’s a website, Mr Landlord.com that is chock full of useful information for landlords and landlords to be.

cforms contact form by delicious:days

Yes, despite all the doom and gloom we’re all reading in the papers, its a terrific time to buy a house, co-op or condo in Brooklyn.  If you are wondering why, here are a few good reasons.

1. Prices have dropped as much as 15% in some areas of Brooklyn from just a year ago.  Its a great time to get a bargain on a piece of property.
2. Interest rates are still low.   According to Bankrate.com, a 30 year fixed rate mortgage can be had for as low as 6.45%. 
3. You’ll find that sellers are much more willing to negotiate on price then ever before.
4. Prices in the areas of Brooklyn that I specialize in have stabilized over the last two months or so.   If prices have hit bottom, which many veteran Realtors are saying they have, then prices will hoover for a while and then begin to rise. 
5. The economy will rebound.  It always has, it always will. 

Don’t try and time the market.  If you’re in the position to buy, but you have been hesitant because of the situation with the economy, don’t sit on the fence.  Go ahead and buy!!  Before long, you’ll see prices start to rise along with interest rates, and you will have missed the “get a house, co-op or condo for a steal” boat.

p.s. - If you have any Real Estate needs such as buying, selling or renting real estate, and want to work with a real estate professional who will provide exceptional service with a smile, call me today at 718-338-3380, 917-544-2662 or Click here to send me an e-mail.

Since I answered the question about Clinton Hill’s Borders in my last post, I decided it would be a great idea to outline the borders of another one of my favorite Brooklyn neigborhoods, Bedford Stuyvesant.

So to get that information, I asked a fiend of mine who is a lifelong Bedford Stuyvesant native what streets make up the bounderies of Bed Stuy. Without hesitation, he said Flushing Avenue to the North, Atlantic Avenue to the South, Classon Avenue to the West, and Broadway and Malcom X Boulevards to the East make up the borders of Beford Stuyvesant.

p.s. - If you are interested in selling your home for the highest possible price in the least amount of time, please contact me at 917-544-2662 or Click here to send me an e-mail for more information.

The mortgage meltdown that we are experiencing at this time makes it all the more important for anyone thinking about purchasing a home to make sure he or she does everything possible to improve his or her credit score.  Here are seven things that you can do to increase your FICO score.

1. Pay Off As Much Debt As You Can - This is the best and quickest way to improve your credit score.
2. Pay Your Bills On Time - It may sound like a simple thing, but few things will adversely effect your credit score like having late payments.
3. If You Are Behind On Payments, Catch Up - Do everything you can to get current on all payments to your creditors and stay current.  The longer you keep paying your bills on time, the better your score will be.
4. Having Trouble Paying Bills?  Get Help - If you find that you just can’t keep up with all your bills, contact your creditors and see if you can make arrangements or contact a credit counselor.
5. Do Not Open Any New Credit Accounts - Having the ability to borrow money doesn’t effect your score, but owing a lot does.  Don’t tempt yourself.  Open new accounts only when absolutely necessary.
6. Do Not Close Old, Paid Off Accounts - Closing those accounts lowers the total credit available to you and makes the balances you do have loom larger in credit score calculations.   Also closing older accounts can shorten the length of your reported credit history and make you seem less credit-worthy.
7. Keep Track of Your Credit Score - You are allowed to get a free look at your credit report with all three credit bureaus (Experian, Equifax and TransUnion) once a year.  Any one of the three credit bureaus will calculate your FICO score for a nominal fee.  Should you find any errors, follow the credit bureau’s instructions on how to get the problem corrected as soon as possible.

These seven tips can help you increase your FICO score (remember 850 is the best and 300 is the worse), and improve your chances of getting a loan with the lowest possible interest rate.   Happy House Hunting!

According to an article posted on the New York Post Website, home sales in Brooklyn have dropped sharply compared to the same time last year.  “They’re down a staggering 43.6 percent in the last 12 months” the article states. 

The article futher adds that some of the hardest-hit neighborhoods in Brooklyn are Crown Heights, East New York and Bedford-Stuyvesant, where the number of sales dropped 53.7 percent and median prices plunged from $561,350 to $499,902.  

What does this mean for you?  If you plan on selling a property in Brooklyn it means that you’ll be getting less money then you would have a year ago.  If you’re serious about selling, putting your property up for sale at the correct price is essential.  For a comprehensive evaluation of how much your property is worth right now, fill out my Home Evaluation Form.  Its free and there’s no obligation.

If you’re planning on buying, it means a property in Brooklyn, in Crown Heights or Bedford Stuyvesant in particular, are more affordable then ever.  Its a great time to buy!  If you’re interested, use the form below to set up an appointment so we can get the ball rolling and get you into your new home.

cforms contact form by delicious:days

When you are pre-qualified for a loan, it means that, assuming all the information you provided about your finances such as your employment history, salary, the amount of money you have for a down payment and so forth is accurate, you have the potential of getting a loan for the amount stated on your prequalification letter. Generally, banks and other lending institutions will pre-qualify you for a loan for free.

When you are pre-approved for a loan, it means that your employment history, your salary, the amount of money you have for a down payment, your credit score and all other pertinent financial information has been verified. You are approved for a loan for the amount that your pre-approval letter states. Generally, banks and other lending institutions charge a fee of several hundred dollars for pre-approving you for a loan.  Usually, the pre-approval fee can be applied towards your closing costs.

If you are truly ready to buy in the next 60 days, getting pre-approved for a loan will save you time, and will give you a leg up if you find yourself in a bidding situation with another buyer who is not pre-approved. Also, many sellers require that you are pre-approved before they will allow you to view their property, that way ensuring that a potential buyers inability to qualify for a loan not will jeopardize a potential sale.

cforms contact form by delicious:days