Overwhelmed at the prospect of saving money for a down payment for a Western New York home? Here is a great way to start saving for your WNY home - your coffee drinking habit could be eating away at money that you could be saving for that down payment. Do you go out and get yourself Starbuck, Tim Hortons, or Dunkin Donuts coffee everyday in the WNY area instead of drinking the coffee in the office or from home?

Well basically a Short Sale in Real Estate is when a sale of a house in which the proceeds fall short of what the owner still owes on the mortgage. Many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments.

There are ways to still purchase a new home with very little funds

Is your house worth less then what you owe on your mortgage? If so, the term that defines this is called an underwater mortgage or some also call it upside down and you are not alone, nearly 1 in 6 homeowners find themselves in this position today. Underwater mortgages are mortgage arrangements that effectively leave the owner with more debt on the property than the current market value. Generally, an underwater mortgage situation does not arise when a buyer takes out a first mortgage. The condition tends to arise when a second or third mortgage is taken out, or if factors within the area cause the property to depreciate in value unexpectedly

You might have an idea of the loan payment and mortgage you can afford in Western New York. Lending requirements are changing rapidly in today’s market so the bank might not agree with your thinking. Do you really want to find the absolutely perfect home only to find out you cannot get the mortgage for it?

To protect the interest of their investors, the buyer’s mortgage lender hires a licensed appraiser to give an independent, objective opinion of what the property is worth. The appraiser compares the house with similar homes in the neighborhood that have recently sold.

As a buyer you need to remember that a mortgage is conditionally approved, with the lender reserving the right to re-verify credit, income, assets and employment at anytime. The lender may cancel the loan if there are any adverse changes to your qualification status. Just because you have your mortgage approval letter does not mean you will be able to close on your home purchase. What happens after your mortgage approval may affect your eligibility.

Savvy investors use hard money to their great advantage. Let’s look at a Western New York example of Hard Money lending. The Seneca Casino people paid an offshore investor for the $100,000,000 needed to build their first casino? It is rumored at 23+%, short term.
Bad move? No-it was brilliant!
The Casino in Niagara Falls was up [...]

There are a few ways to decide whether it is worth it or not in Western New York. You see… a Short Sale is a method for reducing your debt. It is NOT Free though. It has its costs and they are not all short term. The most obvious negative effect is to your Credit. A Short Sale is a “derogatory”. That means that you will have significant damage done to your credit.

The Department of Veterans Affairs (VA) guarantees loans to help qualified veterans, reservists, and active-duty service members to finance their homes. Refinance or Purchase. The VA loan allows veterans 100% financing without private mortgage. A VA funding fee of 0 to 3.3% of the loan amount is paid to the VA and is allowed to be financed.

You can apply for a Certificate of Eligibility by filling out a governmental form called the VA Form 26-1880, Request For a Certificate of Eligibility For Home Loan Benefits.