Real estate lingo for the newbie

In today's real estate market there is a lot of uncertainty. The sub-prime mortgage crisis is the buzz word phrase that has a lot of people talking. One lesson that can be learned from this situation, is that it is so important for prospective homeowners to know what they are getting themselves into. Buying a home can be stressful, and overwhelming, but knowing what you are signing on for is paramount to securing an investment that will serve you well. A little education can go a long way. Below is a glossary of key terms associated with all things real estate. If you are a "newbie", familiarize yourself with these as you begin your real estate search:

We'll begin in the middle of the alphabet with "M" words, as "mortgages" seem to be the hot topic these days.

Mortgage: is a lien on the property that secures the Promise to repay a loan. A loan to finance the purchase of real estate, usually with specified payment periods and interest rates.

Mortgage broker: Is a professional who works for a firm that originates and processes loans for a number of lenders.

Mortgage banker: Is a company that originates loans and resells them to secondary mortgage lenders such as:Fannie Mae or Freddie Mac."Who????", you ask. Just, read on.

Fannie Mae: Is a sort of acronym which stands for Federal National Mortgage Association (FNMA); a federally-chartered enterprise owned by private stockholder. This enterprise purchases residential mortgages and converts them into securities for sale to investors;by purchasing mortgages, Fannie Mae supplies funds that lenders may loan to potential home buyers.

Freddie Mac: Is another acronym of sorts is the Federal Home Loan Mortgage Corporation (FHLM); a federally-chartered corporation that purchases residential mortgages, coverts them into securities, and sells them to investors, providing lenders with funds for new home buyers.

Mortgage insurance: Is a policy that protects lenders against some or most of the losses that can occur when a borrower defaults on a mortgage loan. Mortgage insurance is required primarily for borrowers with a down payment of less than 20% of the home's purchase price.

ARM: Adjustable Rate Mortgage is a mortgage loan subject to changes in interest rates. When rates adjust, ARM monthly payments increase or decrease at intervals determined by the lender. The change in monthly - payment amount, however, is usually subject to a Cap. "What is Cap in this case?", you ponder. Again, just read on...

Cap: Is a limit, such as that placed on an adjustable rate mortgage, on how much a monthly payment or interest rate can increase or decrease.

Assumable mortgage: Is a mortgage that can be transferred from a seller to a buyer; once the loan is assumed by the buyer the seller is no longer responsible for repaying it; there may be a fee and/or a credit package involved in the transfer of an assumable mortgage.

Amortization: Is the repayment of a mortgage loan through monthly installments of principal and interest. The monthly payment amount is based on a schedule that will allow you to own your home at the end of a specific time period.

Appraisal: Is a document that gives an estimate of a property's fair market value; an appraisal is generally required by a lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property.

Balloon Mortgage: Is a mortgage that typically offers low rates for an initial period of time, after the said time period elapses, the balance is due or is refinanced by the borrower.

Bankruptcy: Is a federal law whereby a person's assets are turned over to a trustee and used to pay off outstanding debts. This typically occurs when someone owes more than they have the ability to repay.

Building code: Is based on a set of agreed upon safety standards within a specific area. A building code is a regulation that determines the design, construction, and materials used in building.

Credit bureau score: a number representing the likelihood a borrower may default. This number is based upon credit history and is used to determine ability to qualify for a mortgage loan.

Debt-to-income ratio: a comparison of gross income to housing and non-housing expenses. With the FHA, the-monthly mortgage payment should be no more than 29% of monthly gross income (before taxes) and the mortgage payment combined with non-housing debts should not exceed 41% of income.

EEM: Is short for an Energy Efficient Mortgage. This is an FHA program that helps home buyers save money on utility bills by enabling them to finance the cost of adding energy efficiency features to a new or existing home as part of the home purchase

Fair Housing Act: Is a law that prohibits discrimination in all facets of the home buying process on the basis of race, color, national origin, religion, sex, familial status, or disability.

Home Inspection: Is an examination of the structure and mechanical systems to determine a home's safety; makes the potential home buyer aware of any repairs that may be needed.

Interest rate: Is the amount of interest charged on a monthly loan payment. This is usually expressed as a percentage.

Lease purchase: This exits to assist low - to moderate-income home buyers in purchasing a home. It allows them to lease a home with an option to buy. The rent payment is made up of the monthly rental payment plus an additional amount that is credited to an account for use as a down payment.

Lien: Is a legal claim against property that must be satisfied When the property is sold

PITI: Principal, Interest, Taxes, and Insurance. These are the four elements of a monthly mortgage payment. The payments of principal and interest go directly towards repaying the loan while the portion that covers taxes and insurance goes into an escrow account to cover the fees when they are due.

Pre-qualify: This is when a lender informally determines the maximum amount an individual is eligible to borrow.

Pre-payment: This is a payment of the mortgage loan before the scheduled due date; maybe Subject to a prepayment penalty.

Principal: The amount borrowed from a lender. The principal doesn't include interest or additional fees.

Real estate agent: Is an individual who is licensed to negotiate and arrange real estate sales; works for a real estate broker.

REALTOR ®: Is a real estate agent or broker who is a member of the NATIONAL ASSOCIATIONOF REALTORS, and its local and state associations.

Refinancing: Means paying off one loan by obtaining another. refinancing is generally done to secure better loan terms such as a lower interest rate on a loan.

Rehabilitation mortgage: Is a mortgage that covers the costs of rehabilitating (repairing or Improving) a property. Some rehabilitation mortgages, allow a borrower to roll the costs of rehabilitation and home purchase into one mortgage loan.

Sweat equity: Using your own labor to build or improve a property as part of the down payment

Title insurance: This is insurance that protects the lender against any claims that arise from arguments about ownership of the property;also available for home buyers.

Title search: Is a check of public records to be sure that the seller is the recognized owner of the real estate and that there are no unsettled liens or other claims against the property.

Of course, there are many more terms and different types of mortgage situations to explore and educate yourself on. But, the above definitions are a good start toward becoming acquainted with the language, lingo and important concepts in real estate.

Lancaster suites manila announce launch date for condotel operations

Beth Collingz, International Marketing Director of PLC Global an internet based sales and marketing company and lead marketing partners with Pacific Concord Properties, Inc., for the Lancaster Brand of Condotels in the Philippines, recently announced the company has set a December 2007 soft launch date for its Lancaster Suites Manila Tower I Condo Hotel rental operations.

Property is all about LOCATION said Collingz. Lancaster Suites, centrally located along Shaw Boulevard, Metro Manila some 200 meters from EDSA-Shaw Boulevard Light Rail Transit Station and the Ortigas Center business district, provides guest access to its own unique Mini Mall feature with prerequisites of the urban dweller. Schools, hospitals, banks, restaurants, shopping malls, and leisure are all found within a few minutes from the Condotel.

Lancaster Suites, located a mere 5 minutes from such Ortigas landmarks as the SM Mega Mall, Shangri-La Mall, Edsa Plaza Hotel, and the Asian Development Bank, San Miguel Corporation and Banco de Oro Head Office, provides you with easy access to all the essentials of urban living. This ideal location will complement the Condotel operation since Lancaster Suites Manila will function as a condominium hotel a preferred accommodation choice of businessmen and holiday travelers alike. Clients can either purchase Condotel Suites for investment purposes or lease the units on weekly, monthly or yearly basis.

For the soft launch, LHLPI will prepare special promotional room rates aimed at budget and business travelers whilst longer term discounted rates for monthly and yearly lease rentals are also to be made available said Collingz.

Clients wishing to purchase units may do so and we currently have a few Executive Studio Suite and One-Bedroom Suites available at Lancaster Suites at Pre-Operational Prices that will be “Ready For Use from December 2007”… at the current price said Collingz.

All units at the Lancaster Suites have kitchen facilities. The standard unit price provides for the suite to be semi-finished but not fully furnished. Included in the current price are the interior finishing’s such as tiled & semi-fitted bathrooms, bedrooms with simulated wood plank flooring, semi-fitted living and dining area with simulated wood plank floorings and lower kitchen cabinets/work tops installed. Walls and ceilings are painted cement finish. A complete optional extra interior fit-out package including unit fittings and fixtures, furniture’s, furnishings, air-conditioning, lighting fixtures and appliances will be available towards the time the units are closer to being completed. Monthly condo dues or maintenance fees are currently around 80 pesos/square meter of the unit floor area/month.

Prospective or existing unit buyers may avail of up to 15 year mortgages for the purchase of all Lancaster Suites Tower I Condotel units with minimum equity of 30%. Banco De Oro (BDO) a commercial Bank in Metro Manila has just approved a buyer's financing or mortgage plans for Lancaster Suites Tower I Manila Condotel units. The new financing scheme, a first providing Philippine Mortgages to Foreign Nationals residing overseas for Condotel units in the Philippines, is now available to unit owners (Filipinos, Filipino-Americans and Foreign Nationals alike) whom are looking to purchase a Condo Hotel Suite or refinance their investments through BDO's Home Loan

Lancaster Suites Tower I Manila Executive Studio Suites may be purchased with a Reservation Fee of - Pph - 25,000.00 then 30% Down Payment of - Pph-659,583.34 within 30 days and the resulting balance payable over 12 equal consecutive monthly installments of - Pph-128,252.32. Interest Free. For clients intending to enroll units in the Condo Hotel Rental Pool a complete Condotel Suite "Fit-Out" package including all required items of furniture's, furnishings, appliances, air-conditioning, kitchen utensils, dinnerware's, linens etc is now available for Studio Suites ranging from - Pph-403,715.00 said Collingz

Metro Manila remains a popular choice with international buyers and institutional investors. Collingz says clients tell her that it makes more sense to buy in a year-round vacation destinations and business centers. Lancaster - The Atrium Condotel developments by Pacific Concord Properties located in Shaw Boulevard, Metro Manila - fits the bill with all it offers to International buyers.

Accessibility is also a factor. Flights from London to Manila, for example, average just 16 hours, add to that the many airline specials and it’s easy to see why this area is becoming an international community. Unlike other offshore rental properties, where the rental market is largely seasonal, in the Philippines there is a strong market for rental properties year round. This gives buyers greater flexibility in choosing when to use and when to rent their property. The strong rental/second home market also has resulted in a proliferation of professional property managers and rental agents, making property ownership and rental easy. Pacific Concord Properties Inc with it’s flagship Lancaster Condotel Developments fit’s the bill enthuses Collingz

Homebuyers benefit from tightening lending market

Some good news is knocking at the door of prospective homeowners worried about the recent surge in mortgage rates.

The previously booming home - loan industry is undergoing a contraction. In fact, the Mortgage Bankers Association predicts the industry will shrink by 14 percent in 2006. What's the good news? That means lenders are competing harder to win your business and you can take advantage.

Beyond discounts and extended terms, banks are leveraging their scale to eliminate many of the costs that cause confusion and frustration for homebuyers at closing. Bank of America's Floyd Robinson says his company offers real savings off closing costs of up to $2,000.

Robinson says they can offer this because they cut internal costs from the process and are passing those savings on to customers. These funds can be critical when applied towards the down payment, moving fees or new home amenities.

Robinson suggests you follow these tips when shopping for a mortgage in this new lending environment:

• Check with your bank first-banks may reward your loyalty by offering a relationship discount.

• Don't pay for fees that you know other lenders have eliminated-take advantage of programs like the one offered by Bank of America, which eliminates the origination, application, lender closing, appraisal, flood determination, tax service, credit report and courier fees for existing customers.

• Confirm the savings are real-make sure the lender has truly cut costs and isn't simply rolling them into the overall cost of the loan.

• Focus on the annual percentage rate (APR) and not just the interest rate-the APR is what the loan is actually going to cost you and it's a more accurate comparison of loan offers.

Most of all, remember to always work with a lender that you know and trust; one that will work with you to find the right loan for your individual needs and your monthly budget-now and in the future. The right lender will take the gimmicks, guesswork and surprises out of closing and help make your dream home a reality.

Florida s first time buyer incentives

Florida has been labeled a progressive state before, when it introduced radical 'green' measures throughout the state, but this time its innovative idea is to offer help to first time buyers. Florida has recognized that younger people are being pushed out of the housing market, and are trying to rectify this with fairly substantial financial incentives.

This failure to accommodate young people in the realty market has happened because nationwide, most homes have become larger and more expensive. Consequently, they are too pricey for the average first time buyer.

A spokesman for a local builders association told the St. Petersburg Times that builders will still be building over-sized homes but there will also be an increase in smaller houses being built. This change in strategy is not seen as a fad by builders; it is simply sound economics as smaller homes are in short supply.

Building smaller homes in the Florida area could also be one way of keeping the younger generation active there. There have been extensive studies involving the affordability of house prices for young people. One recent study was carried out in Boston, Massachusetts. This is an area known for its lack of moderately priced housing.

Boston is the third most expensive property market in the nation and according to the 'Boston Globe' newspaper, young people are moving away in droves because of the house prices. This is costing Massachusetts the 'human capital' needed for future growth and economic expansion. This type of situation could easily be replicated in Florida because it is such a popular retirement area; approximately 17% of the population is over 55.

This youthful exodus has been recognized and hotly debated in Boston. Part of the blame has been laid at the local government's feet with their zone rulings favoring large residential lots. A study proved that homes built from 1998 to 2002 used an average of 1.3 acres per lot.

With the cost of a building lot in Boston quoted at around $300,000 and a house costing around $250,000, young people have no chance of owning a home.

Perhaps learning from Boston's mistakes, the news in Florida is that the government is trying to encourage more first time buyers. This will expand the younger segment of Florida society and consequently will also be likely to increase the permanent population.

The first time buyer program is designed to help those people who may have only a modest income. (There is a ceiling on the monthly salary.) Income limits are not rigid, but determined by the number of individuals living in the house.

The help that the state of Florida is offering is very worthwhile to look into if you are a first time buyer. Help can come in the form of assistance with the down payment, with the closing costs and in the provision of low, fixed rate mortgages.

There are several requirements to be met in order to qualify, including established credit worthiness and not having owned a home in the last three years. The program details can be found on the web listed as Florida's First Time Buyer Program, or you can ask your real estate agent to help you sort out the details.

The first impression a buyer gets

Your home may be a great place to raise a family or just live. The problem, of course, is a buyer does not know that and instead forms an immediate opinion on what they see first.

The First Impression a Buyer Gets

Love at first sight is a clichй, but it has an underlying truth to it as do most clichйs. The simple fact is we are an emotional species. Whether intentionally or unintentionally, we always form a first impression of everything we come in contact with. That impression may be conscious or subconscious. The undisputed fact, however, is our first impression determines any subsequent decisions a majority of the time. If you are selling a property, you must accept and focus on this fact.

As a seller, it is vital that you understand a buyer’s first impression of your home is everything. If the first impression is not good, the buyer will move on. It is as simple as that. There are two areas where you are going to make a first impression, so let’s take a closer look at them.

Obviously, one area is when a buyer first comes to see the property. The minute they drive up your street, they are evaluating. They are looking at all the homes, not just yours. As a result, it is important that you home looks as good as it can compared to those around you. This means you need to have the landscaping in excellent shape. Remove dead plants, edge the lawn, fertilize everything, rake up leaves and so on. If you have a driveway, you should have it cleaned before showing the property. Keep garage doors closed. The list is endless, so just make sure the first impression is impeccable.

A less obvious area where a first impression is created deals with photographs of a home. Over 70 percent of homebuyers now do their initial shopping on the Internet. If you are not listed on a site, you need to be. Regardless, the key to your web listing will be the photographs. Upload as many as you can, but make sure they look great. Avoid dark, unappealing pictures at all costs. The process is like a dating site. The buyer will be pointing and clicking through a lot of properties, so take some time with your photographs. You may even want to incur the expense of a professional photographer.

One of the best ways to evaluate your property is to ask others to look at it and offer suggestions. Friends can be a good choice, but you must make clear to them that you want only critical comments. To this end, you need to brace yourself for such comments. Don’t ask for their help and then get angry when they give it.

Uk property investors go for philippine condotel investments

Investments in buy to let properties or Condo Hotels in the Philippines have increased in popularity by 29 per cent during the last three months, making it the second most popular investment vehicle behind consumers’ own homes, according to PLC Global.

Beth Collingz, Global marketing Director of PLC International Marketing Networks, a company specializing in Condo Hotel or Condote Sales and Marketing in the Philippines, comments: "The UK Savings and Investments index clearly shows that the UK saver prefers to invest in bricks and mortar and more and more investors are moving offshore to take advantage of the much cheaper prices in the Philippines and high rates of rental returns as room rates in Metro Manila and Cebu, two major Cities in the Philippines, are not much less than rates charged for rooms in Europe making the Philippines buy to let properties an ideal property investment".

The Philippines, located in Southeast Asia, is one of the few fully democratic nations with a predominantly English speaking population benefiting from substantial foreign direct investment and billions of dollars in remittances from overseas Filipinos. According to the report these facts mean that over the coming decade the housing market in Philippines will likely go from strength to strength and anyone who invests now could net up to 400% profit on their investment in the next ten years.

Because property prices in the Philippines for mid range Condominium developments start from as little as twenty five thousand Pounds [25,000 GBP], the room for property price expansion is clear. The low starting prices for real estate in the Philippines also mean that its property sector is already attracting substantial international real estate investor interest.

Investors from all backgrounds are attracted to the Philippines - those with a small sum of money to invest are looking to make immediate gains from buying Condos in Metro Manila preconstruction which can be purchased by stage payment and profited from upon completion when investors are flipping the real estate right back into the market. Those with more substantial sums of money to invest are generally drawn to either the Condotel Investment property sector in Manila or the Philippines burgeoning tourism market.

Opportunities in the Philippines tourism market exist along the country’s stunning and as yet undeveloped coastline and also in the Philippines quality but as yet little known beach resorts. Accommodation in these locations is required to let out to tourists and a growing number of British citizens are also seeking second homes in these areas of Cebu, Philippines as well, with most preferring to purchase Condotel or Fully Managed and Operated Condo Developments where a rental income can be gained when not using their units.

Pacific Concord Properties, Inc., Flagship Lancaster Atrium Suites Condotel [Manila] development located along Shaw Boulevard, Mandaluyong City, Metro Manila, is one of the hottest Condotel Investments in the Philippines where property investors, apart from real estate appreciation initially reckoned to be 100% for early investors, will get projected Rental Incomes on their units of up to 16% per annum once fully operational from 2010

To be called Lancaster Atrium [which is the second Tower adjacent to the existing “Sold Out” Tower I] Condotel Studios, One, Two & Three Bedroom Suites are currently available to Property Investors adopting International Standard Escrow Trust Account “Buyer Safe” Easy Secure Payment Plans… with 6 year interest free payment terms or up to 12 year no prequalification "In-House" financing [available to all overseas buyers], full condo ownership, no management costs for Condotel Suites, no enrollment charges for joining the Condotel Rental Pool, and minimum monthly maintenance fees, as buyers or sellers of Real Estate you really should take a moment to look at this Philippine Condotel Investment Opportunity

According to Beth Collingz, of PLC International Marketing Networks, a Lead Marketing Partner with Pacific Concord Properties Inc., whom have Condotel developments in Metro Manila and Cebu, and specializes in working with international clients: “My phone has been very busy with buyers from the UK, Scotland and Australia interested in purchasing investment properties and holiday homes here. A lot of this interest is being driven by the relatively cheap market prices in the Philippines compared to Europe, especially UK Housing prices, and the easy payment options available for our Condotel Developments where they can use the Condo for vacations and rent it out through our In-House Condotel Management thereby gaining rental incomes that on today’s purchase prices, give a projected ROI of some 12-16% depending upon mode of payment for the unit”

Beth Collingz

Director - PLC International Marketing Networks

Real estate buying and selling tips

In purchasing a property, an interested buyer should consider the time he intends to stay in the place, since selling a house too soon would probably not be a profitable move, especially if there is instability in the market. Make sure that you stick with your price range and to minimize lower depreciation for your house, buy a property that is a little bit cheaper than those in your neighborhood. The added wisdom in this is lesser vulnerability to market volatility, with nearby luxury homes pulling the neighborhood’s price range in times of market boom. It would also be beneficial if you talk to a real estate agent on the market condition of your desired neighborhood.

Ask for special incentives in buying a house, as there are a lot of sellers now and the market is quite saturated. Be very attentive on the financial terms offered by the seller and try to determine any possibility of reducing your transaction costs, such as asking the seller to shoulder the closing cost.

More importantly, always consider the location of the house you wish to purchase. Try to avoid properties near busy streets or places where a lot of people converge at particular times of the day. Choose a house located in a community with viable economy, to ensure your property will still sell a few years down the line. Examine also the local services available, as well as the crime rate. A property near a good school is considered a good find. Do not be discourage if the house is located in a community with higher property tax, as this often translates to better services and infrastructures.

Hire a home inspector to check whether appliances are in good working order, the electrical wirings are all in order, and determine the state of the heating and air conditioning systems. A good home inspector should also scrutinize the exterior of the house, including the roofing. Have the inspector check the plumbing, ventilation and the general foundation of the house.

At the other end of the spectrum, selling your house also entails that you must first formulate a good marketing plan. This includes considering several listing contracts with your real estate agents, who will be the one bringing the clients to your house. Evaluate also your asking price and try to adjust it with the current pricing trends in the local area. Timing is also important as it will do you no good to sell during a market slump. Next, improve your house’s appeal through cleaning, tidying up the yard and even adding a fresh coat of paint. Remember that first impression always makes a big impact on potential buyers. Make sure that you are also familiar with disclosure laws in your area. Lastly, be discriminating in who you allow inside your house. The value of a good real estate agent comes into play here, as it is always good to have somebody around who is quite knowledgeable and can answer questions regarding real estate.