In this buyer's market, can it get any better for buyers? Apparently it can!
Fannie Mae is now offering to pay up to 3.5% in closing costs on foreclosures in their inventory! Check out www.HomePath.com for a list of available properties in your area. As of this writing there are 31 in the Summerville, SC area alone!
You can also use the equivalent amount for purchasing new appliances.
For more information, contact me or click the link to read more.
REALTOR® Magazine-Daily News-Fannie to Offer Closing Cost Aid on Foreclosures
Maria Pettis
REALTOR, ePRO
Century 21 Properties Plus
(843) 860-3901
mpettis@century21properties.com
www.SummervilleRealEstateOnline.com
Saturday, January 30, 2010
Friday, January 8, 2010
So You Want to Buy A Home? But Are You Really Ready to Get Started?
The newly expanded and extended tax credit is opening the door for a lot of folks looking to purchase a home. Interest rates are still low, there is a ton of inventory...it's a buyer's market!You've browsed listings online, set aside some money for a down payment and closing costs, you're ready to roll! Right?
Well, almost...
Do you know the very first step you should take before going out with your real estate agent to look at homes? If you said talk to a lender, you hit the nail on the head. Unless you are one of the lucky few with cash to make your home purchase, speaking with a lender is the first real step toward getting that key to your new front door.
Many times I'm contacted by folks who are very excited to start looking for a home. They tell me their wish list, all the things they want or need, the desired location, they talk about homes they've seen online, etc. And I will ask a lot of questions as well so I can be sure to find the perfect place.
That's the fun part. But then we have to face the reality of what these folks can afford. So I will begin to ask questions that every home buyer should know the answer to...
1. Have you been pre-qualified or pre-approved?
Many agents won't even put you in their car to go look at homes until you can show them at least a pre-qual letter from your lender. This is just a general letter saying that based upon the information you've provided the lender, they feel you qualify for a mortgage amount of X dollars. A pre-approval letter is even better and one that you will want to include with any offers you make. This means you've actually provided certain documentation to the lender, they've checked your credit and basically they've approved you for your loan although it may be contingent upon providing other documentation or meeting additional criteria.
2. What type of loan are you applying for and how much do you have for a downpayment?
This is important for you and your agent to know as well. Different programs have different down payment requirements. For example, FHA currently requires buyers to put down 3.5% of the purchase price. VA loans can be up to 100% financing, however, you still have the option of putting money down. A conventional loan may require as much as 20% down.
Say you are approved for a $200,000 loan and you have another $20,000 for a down payment. That's a total budget of $220,000. So you need to decide if you want to look at homes all the way up to your max of $220,000 or stick to a lower price range. Which leads me to the next question...
3. Did you get a breakdown of your monthly mortgage expenses at different price points?
Even though your lender may say you qualify for a $200,000 loan...what does that equate to in monthly payments and are you comfortable with that? Have them include estimated insurance and taxes in addition to the mortgage amount because those expenses will effect your monthly payment as well.
4. Have you shopped around?
I always recommend talking with a few lenders. Start with your own bank or credit union. Your agent, family and friends may have people they can recommend as well. Different places can offer somewhat different programs and certainly different rates. Your interest rate can make a huge difference on the monthly payment...more so than a reduction of the price of the home in some cases.
Bottom line is...you really need to know if you qualify for a loan and for how much. You want to be sure you are looking in the right price point so you are not wasting your time or your agent's time. You may need to adjust your expectations up or down regarding the quality, location or condition of homes based on this information and your local market conditions.
I've come across folks whose credit may not be the greatest and so they are hesitant, perhaps even a bit embarrassed, to talk to someone about their loan options. Any reputable lender will keep the information confidential. And if you don't qualify for a loan now, they can often times make suggestions on how you can improve your credit score. This can often be done over the phone and it won't cost you a thing.
The thing is, you won't know for sure unless you do it! And it really is the essential first step to home ownership.
For more information or if you have questions, contact your lender or feel free to contact me. While I am not a mortgage expert, I will do my best to answer your general questions or to point you toward resources where you can get the appropriate information.
Maria Pettis
Realtor, e-PRO
(843) 860-3901
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