Get Your Ducks In A Row To Purchase

The Top 5 Things To Do Before Purchasing A Home

1. Talk to a lender for a pre-approval.  In today's crazy market, it is more important than ever to have a pre-approval before you start looking for a home.  This is so that you will be able to know how much home you can afford, but it will also show a seller that you are serious.
2. Know what you want in a home.  It is a good idea to be on the same page as your partner (if there is one) as to what you are looking for in a home.  The inventory is limited so you may not be able to get everything you are looking for in a home.  Know which items are negotiable and which ones you can not live without.
3. If searching on your own, use correct app/site.  We understand that buyers are looking for their home on the internet without the Realtor's help, and that's okay.  There are a ton of different sites out there that say they are able to help you search for your home.  Some of them such as Trulia and Zillow are not the best used apps because they don't have the most updated information.  You may have seen that if you found a house you really like and inquire about it that it is no longer available.  The best app / site to use is Realtor.com because it is directly fed from the MLS system that we agents use.  This allows the most up-to-date listings as well as taking off the ones that are no longer available.
4. Trust your agent's advice.  Believe it or not, we know what we are talking about lol.  Realtors take an oath and have to uphold what is best for our clients.  We don't worry about our commission which is a misconception.  We really try to find exactly what you are looking for at the lowest price, in the best condition, in the shortest time frame.  And that brings us to number 5.
5. Be realistic.  As I stated before, we are under limited inventory and we are not able to get everything that you are asking for.  We are also here to guide you on the price and will figure in when a closing cost is needed.  We absolutely HATE to send over a lowball offer and ask for closing costs as well.  It makes us look silly and it makes the seller not consider your offer seriously.  So when we try to guide you through the process and let you know where we feel you should be, please understand that we are doing all of this to help you get the home of your dreams!

If you're curious if now is the right time to purchase a home or would just like to ask questions to a knowledgeable team, contact us and we will do everything within our power to help you! 

I Can't Buy A House Because My Credit Sucks!

You wouldn't believe how many times I hear this!  And the scary thing about it is that it's not always true!!!  There are a few different reasons why people think this and there are solutions too.  Here are a few.

1.  There are many different avenues out there that promise to give you your credit score / FICO score.  What most people don't understand is that the formula that goes into creating these scores are not the same ones that go into the scores that a lender look at.  Don't just jump to the conclusion that it's not good enough.  

2.  The last lender that I spoke to said that I cannot get a loan.  This very well could be true.  However, each lender has different credit scores that they are allowed to accept and they also have different requirements for what can be on your credit before they accept / deny you.  I am lucky enough to work with amazing lenders that are able to help people every day get a loan for their home.

3.  I have student debt / medical bills that are bringing my score down.  Again, this goes back to the statement in #2.  Every lender is different and there are some lenders that take this into account when they are looking at your account.

4.  I haven't been at this job long enough.  If you have a job history of 3 years but it hasn't been at the same location, sometimes that is okay.  It is a matter of if you bettered your job, if you stayed within the same field of work, etc.  

5.  I don't know what my credit score is!  I wish that people would just sometimes say this straight.  Just like this lol.

I am sure that there are many other reason that could be put out there as to why someone isn't able to get a loan for a home.  The answer is something that we all know but don't live by...you don't know until you ask.  But it doesn't stop there.  You have to ask the RIGHT people!  The lenders that I work with are more than willing to take a look at your credit and give you an honest answer.

I am currently working with someone who had visited me at an open house for a rental.  She thought that she wasn't able to purchase a home but took the chance to speak with one of my people.  He looked at her credit, found there were only a couple of things that she needed to do to get her score up.  She listened and within a month we are looking for her 1st home for her and her family.  It really could be that simple.  But, it's not always that way.  I'll take off the rose-colored glasses for a moment to say there are going to be some instances where it just isn't possible.  Again, you will never know if you don't ask!!!!

If you're willing to take that leap of faith and find out ~ no obligations attached ~ if now could be the time for you to purchase your home, Just click this link I Want A Home with the same words as your Subject and I will send you over the list of my trusted Lenders that can get the job done if at all possible.  Don't delay.  We could be searching for your next house tomorrow!

The Basics of a Short Sale

What is a short sale?

A short sale is when a homeowner is no longer to make their house payment and are behind but don't want to just walk away and give it back to the bank OR when they have a hardship.  The owner must ask the bank for permission to sell the property at a lower price than what they owe on it because it won't sell for the balance of their loan.

Why won't the property sell for that amount?  This happens for a few different reasons like:

• There are multiple loans on the house.
• The neighborhood is selling for less now than what it was when the property was purchased.
• The home is in disrepair and would not sell for a higher price in the condition it is in.

What is a hardship?

• Unemployment / Reduced Income
• Divorce
• Medical Emergency
• Job Transfer Out of Town
• Bankruptcy
• Death

Information on submitting an offer on a Short Sale

• An offer will be presented to the seller of the home to accept or deny.
• The amount that the bank will accept is not known to the seller until they submit their first offer.  Just because the house is listed on the market for a certain amount does not always mean that the bank will accept that amount.
• Banks will want to receive an offer somewhat close to the market value.  These are typically not sold for way below that market value.
• Buyers may wait a very long time to get a response from the bank.  There is no set amount of time that a bank has to respond with an answer.
• An offer can be recanted at any time as long as it has not been accepted by the bank.
• There is a little bit more paperwork that is involved with a short sale.  It is all provided to you when a bid is submitted and turned in as one packet.
• The bank is requiring to have a pre-approval letter submitted with bids. 

The Short Sale Process at the Bank

• Bank acknowledges receipt of the file.  This can take 10 days to a month.
• A negotiator is assigned.  This can take 30 to 60 days.
• A BPO is ordered.  This means "broker price opinion".  Companies hire a real estate broker to prepare an opinion of the value.
• A second negotiator may be assigned.  This can take another 30 days.
• The file is sent to review.  This can take 2 weeks to 30 days.
• The bank may then request that all parties sign an Arm's Length Affidavit.  This means that you don't personally know the seller and are trying to assist them by purchasing the home.
• The bank issues a short sale approval letter.

Some short sales get approval in 6-8 weeks after an offer is submitted.  Others take 90-120 days, on average.

How Much Does A Realtor Cost?

Guess I gave it all away at the beginning with this cute picture, huh?

Seriously, in most cases you are able to use a real estate professional to help you purchase a home at no cost to you.  It is traditional in Central Ohio for the seller to pay the fee for both their agent helping sell their home as well as the agent that is helping the buyer.  There are a few times that this rule doesn't apply and your real estate agent should discuss it with you if this arises.  

Instance 1 is when working with a For Sale By Owner (FSBO).  Because the inventory has been so low lately, we are finding buyers are seeking out these properties and the sellers are not willing to pay the commission fees.  You will find in another of my blogs why you should use a real estate professional.  But most of all, it is to make sure that everything is completely legal for you.  If this happens, the agent should discuss with you the possibility of your paying the negotiated fee.

Instance 2 is when working with investment properties.  There are times when the purchase price is very low and the commission rate offered is very low as well.  Again, the agent should discuss with you before starting this process.  What generally happens is that there could be a flat rate set that would be paid to the real estate person by the buyer to compensate for their time and effort.

Don't feel that you cannot ask your professional right up front if you can expect to pay for their services.  It's all part of the job.