Showing posts with label home buying process. Show all posts
Showing posts with label home buying process. Show all posts
Oct 4, 2011
Expect Multiple Offers
Starting summer 2011, the East Orlando market has seen the return of multiple offers. If you're buying under $200 (and want move in ready like everyone else), be prepared to be one of five, ten or 20+ offers. Inventory is so limited that affordable, move in ready homes are going under contract within days of hitting the market.
Oct 1, 2011
What is a Pre-Approval Letter?
A pre-approval letter is a written document from your lender that details the purchase price you are approved for & any terms that must be met for the approval of your home. You need to know (and your realtor needs to know) what home price you can afford - this is the first important step any buyer must take before beginning the home buying process. A pre-approval letter is included with any offer you write & sellers use your pre-approval letter to make a decision on your offer. As a realtor, a 'pre-approval letter' is preferred, though some lenders today will only provide a 'pre-qualification letter'.
Jun 9, 2011
Few Homes Available in Avalon Park
Buyers considering Avalon Park be prepared for low inventory, high competition & multiple offers. There are only 26 single family homes on the market plus 14 townhomes. see homes
Apr 1, 2011
Feb 24, 2011
Cut Your Closing Costs
Whether you’re a first timer or have been through the drill half a dozen times, buying a home is a stressful proposition. In addition to the anxiety of sinking what may be your life savings into one huge investment, there's the nagging fear that you're getting ripped off in some capacity.
When it comes to closing costs, that may very well be the case. Like car leases, closing costs seem to be designed to confuse the buyer. Most folks don't understand all the mysterious fees they're paying their lender when they close on their home - and sometimes they end up overpaying.
Read full story at smartmoney.com
When it comes to closing costs, that may very well be the case. Like car leases, closing costs seem to be designed to confuse the buyer. Most folks don't understand all the mysterious fees they're paying their lender when they close on their home - and sometimes they end up overpaying.
Read full story at smartmoney.com
Dec 1, 2010
Benefits of a Good Credit Report
A solid credit history can be one of your most useful and powerful financial assets. A record of prudent credit use and prompt payments can enable you to not only qualify for credit when you need it, but it may also enable you to get a lower interest rate on your borrowing.
Nov 11, 2010
Condo Buyers
Interested in buying a condo? Ready to make that offer? Hold everything. To keep from getting stuck with a lemon, you've got to do your homework. Here are seven important questions you need to ask before buying a condo.
Read full article at smartmoney.com
Read full article at smartmoney.com
Oct 27, 2010
Title Insurance Matters
Ron Lieber for The New York Times
When home buyers and people refinancing their mortgages first see the itemized estimate for all the closing costs and fees, the largest number is often for title insurance.
This moment is often profoundly irritating, mysterious and rushed — just like so much of the home-buying process. Lenders require buyers to have title insurance, but buyers are often not sure who picked the insurance company. And the buyers are so exhausted by the gantlet they’ve already run that they’re not interested in spending any time learning more about the policies and shopping around for a better one.
Besides, does anyone actually know people who have had to collect on title insurance? It ultimately feels like a tax — an extortionate one at that — and not a protective measure.
But all of the sudden, the importance of title insurance is becoming crystal-clear. In recent weeks, big lenders like GMAC Mortgage, JPMorgan Chase and Bank of America have halted many or all of their foreclosure proceedings in the wake of allegations of sloppiness, shortcuts or worse. And a potential nightmare situation has emerged that has spooked not only homeowners but lawyers, title insurance companies and their investors.
Read full story here.
When home buyers and people refinancing their mortgages first see the itemized estimate for all the closing costs and fees, the largest number is often for title insurance.
This moment is often profoundly irritating, mysterious and rushed — just like so much of the home-buying process. Lenders require buyers to have title insurance, but buyers are often not sure who picked the insurance company. And the buyers are so exhausted by the gantlet they’ve already run that they’re not interested in spending any time learning more about the policies and shopping around for a better one.
Besides, does anyone actually know people who have had to collect on title insurance? It ultimately feels like a tax — an extortionate one at that — and not a protective measure.
But all of the sudden, the importance of title insurance is becoming crystal-clear. In recent weeks, big lenders like GMAC Mortgage, JPMorgan Chase and Bank of America have halted many or all of their foreclosure proceedings in the wake of allegations of sloppiness, shortcuts or worse. And a potential nightmare situation has emerged that has spooked not only homeowners but lawyers, title insurance companies and their investors.
Read full story here.
Oct 6, 2010
Fannie & Freddie Bargains
From smartmoney.com
To pare down their growing inventory of properties, Fannie Mae & Freddie Mac are scrambling to unload nearly 150,000 foreclosed homes. That means 2004-esque deals – like requiring as little as 3% down, offering to pay a portion of the closing costs and arranging special financing and home warranties for repairs & renovations.
Here are the three best features of Fannie & Freddie foreclosures that make digging for these deals worthwhile.
Small Down Pymt For its foreclosed properties, Fannie will accept down payments as low as 3% on 30-year mortgages at the same interest rates banks are currently offering. And Fannie doesn’t require private mortgage insurance. Compared to a typical bank mortgage, which requires 10% down, plus PMI for buyers with less than 20%, that’s a huge savings – an estimated $51,000 up front and upwards of $2,500 per year PMI on a $300,000 mortgage.
Help With Renovations Fannie and Freddie have always fixed big flaws like leaky roofs & damaged electrical work and they often handle small projects like replacing broken or missing appliances, tearing up old carpet or fixing intentional damage left by former owners or vandals. To entice buyers who want to update or upgrade, many of Fannie's properties now come with an optional mortgage that includes extra financing up to $30,000 for repairs & improvements.
First Dibs Buyers who plan to live in their Freddie-purchased home will get to see properties for at least the first 15 days on market - before the listing opens to would-be landlords. Many bank-owned foreclosure properties are snatched up by cash-stocked investors who can wait out the downturn to sell later at a profit.
To pare down their growing inventory of properties, Fannie Mae & Freddie Mac are scrambling to unload nearly 150,000 foreclosed homes. That means 2004-esque deals – like requiring as little as 3% down, offering to pay a portion of the closing costs and arranging special financing and home warranties for repairs & renovations.
Here are the three best features of Fannie & Freddie foreclosures that make digging for these deals worthwhile.
Small Down Pymt For its foreclosed properties, Fannie will accept down payments as low as 3% on 30-year mortgages at the same interest rates banks are currently offering. And Fannie doesn’t require private mortgage insurance. Compared to a typical bank mortgage, which requires 10% down, plus PMI for buyers with less than 20%, that’s a huge savings – an estimated $51,000 up front and upwards of $2,500 per year PMI on a $300,000 mortgage.
Help With Renovations Fannie and Freddie have always fixed big flaws like leaky roofs & damaged electrical work and they often handle small projects like replacing broken or missing appliances, tearing up old carpet or fixing intentional damage left by former owners or vandals. To entice buyers who want to update or upgrade, many of Fannie's properties now come with an optional mortgage that includes extra financing up to $30,000 for repairs & improvements.
First Dibs Buyers who plan to live in their Freddie-purchased home will get to see properties for at least the first 15 days on market - before the listing opens to would-be landlords. Many bank-owned foreclosure properties are snatched up by cash-stocked investors who can wait out the downturn to sell later at a profit.
Sep 28, 2010
How to Bid on a Home
A buyer wanting an affordable, move-in ready home in east Orlando can expect to write numerous offers due to strong demand & competition particularly from first-time homebuyers. The competition for affordable homes in move-in ready condition is so strong, buyers are finding themselves in bidding wars, driving up the sales price over asking & still losing out on their first choice of home.
Successful home bidding is more than just price…it’s an art & a science to bid on & land the home you want. Here are five critical components of bidding on a home.
Realtor I would advise any buyer – experienced or not – to work with a licensed realtor. A buyer’s agent represents a buyer’s best interests throughout the entire transaction – from showing prospective homes, writing an offer & completing the closing process. Best of all, there is no cost to a buyer to work with a realtor – all commission is paid by the seller.
Price Come out swinging hard by writing a strong, supported offer from the start (low ball offers will get you no where). You may (or may not) even receive a counter offer from the seller, so make your opening offer count. Be knowledgeable about recent sales & homes currently under contract (prices of ‘active’ inventory mean nothing in writing an offer – only sold & under contract). Your offer should be solidly supported using up-to-date ‘comparables’ (anything older than 60 days is stale).
Time Nearly as important as price, time is of essence for all sellers – they want to close yesterday. New requirements & processes for lenders now require several additional days to close, so a 30 day close are history. Today, typical closing time on normal & bank-owned homes is 35 to 45 days. Your offer should state the soonest date you are able to close in (such as 11/25/2010)…don’t list a completely unrealistic closing date of 12 days from now, then not be able to perform - you would be out of contract & would likely lose your deposit.
Concessions Seller-paid closing costs & seller-paid home repairs are a thing of the past. Writing an offer today with any kind of seller-paid concession is likely to turn the seller off. With home prices at rock bottom levels, sellers have no room to give the buyer another dollar on the transaction. However, as the largest home seller in the country today, Fannie & Freddie are providing up to 3% seller-paid closing costs on certain homes (along with a free home warranty) – great incentives to watch for.
Standard Contingencies Your offer should be written using Florida’s standard residential real estate contract paperwork, which contains standard contingencies that serve to protect you, the buyer. This paperwork will include buyer contingencies for financing, appraisal, general home inspection, termite inspection & mold inspection. These contingencies are in place to protect the buyer & to get your deposit back in the case of financing not being approved, the home not appraising for purchase price or major inspection discoveries that are over the agreed upon repair ‘budget’.
Successful home bidding is more than just price…it’s an art & a science to bid on & land the home you want. Here are five critical components of bidding on a home.
Realtor I would advise any buyer – experienced or not – to work with a licensed realtor. A buyer’s agent represents a buyer’s best interests throughout the entire transaction – from showing prospective homes, writing an offer & completing the closing process. Best of all, there is no cost to a buyer to work with a realtor – all commission is paid by the seller.
Price Come out swinging hard by writing a strong, supported offer from the start (low ball offers will get you no where). You may (or may not) even receive a counter offer from the seller, so make your opening offer count. Be knowledgeable about recent sales & homes currently under contract (prices of ‘active’ inventory mean nothing in writing an offer – only sold & under contract). Your offer should be solidly supported using up-to-date ‘comparables’ (anything older than 60 days is stale).
Time Nearly as important as price, time is of essence for all sellers – they want to close yesterday. New requirements & processes for lenders now require several additional days to close, so a 30 day close are history. Today, typical closing time on normal & bank-owned homes is 35 to 45 days. Your offer should state the soonest date you are able to close in (such as 11/25/2010)…don’t list a completely unrealistic closing date of 12 days from now, then not be able to perform - you would be out of contract & would likely lose your deposit.
Concessions Seller-paid closing costs & seller-paid home repairs are a thing of the past. Writing an offer today with any kind of seller-paid concession is likely to turn the seller off. With home prices at rock bottom levels, sellers have no room to give the buyer another dollar on the transaction. However, as the largest home seller in the country today, Fannie & Freddie are providing up to 3% seller-paid closing costs on certain homes (along with a free home warranty) – great incentives to watch for.
Standard Contingencies Your offer should be written using Florida’s standard residential real estate contract paperwork, which contains standard contingencies that serve to protect you, the buyer. This paperwork will include buyer contingencies for financing, appraisal, general home inspection, termite inspection & mold inspection. These contingencies are in place to protect the buyer & to get your deposit back in the case of financing not being approved, the home not appraising for purchase price or major inspection discoveries that are over the agreed upon repair ‘budget’.
Sep 26, 2010
Expect to Pay More For Bargain-Priced Homes
The best values in east Orlando real estate today are by far distressed sales (bank-owned & short sales). Buyers – primarily first time buyers & investors – are clamoring, competing & bidding up these distressed sales to an average of 1% over list in the past 60 days.
Competition for move-in ready, bargain-priced homes is fierce. When these homes hit the market, you can expect them to receive multiple offers in 48 to 72 hrs. Buyers, be prepared to write your offer for over list from the start. With the competition for move-in ready bargain homes, you’ll only get one chance to make your bid. These bank & short sale sellers will go forward with their highest offer immediately & you’ll be hitting the pavement again looking for the next best thing.
Competition for move-in ready, bargain-priced homes is fierce. When these homes hit the market, you can expect them to receive multiple offers in 48 to 72 hrs. Buyers, be prepared to write your offer for over list from the start. With the competition for move-in ready bargain homes, you’ll only get one chance to make your bid. These bank & short sale sellers will go forward with their highest offer immediately & you’ll be hitting the pavement again looking for the next best thing.
Sep 21, 2010
Five Mistakes Home Buyers Make
First-time buyers, without the burden of a home to sell, could benefit from the foul real estate market and the record low mortgage rates - but woe to the overconfident buyer. Here are five common missteps that first-time buyers make.
Read full story at wsj.com
Read full story at wsj.com
Sep 11, 2010
The Roller-Coaster Ride Called a Short Sale
Short sales purchases are not for the faint-hearted. While there is a possibility for a good price, there is also a good chance that the deal will not go through. Many cooks are involved in this stew. The buyer must negotiate the price with both the seller and the seller’s lender. At the same time, the seller must negotiate with the lender on the terms for forgiving the amount still owed on the mortgage. Meanwhile the bank is negotiating fees for lawyers and brokers. The process can take six to nine months.
Read full story at The New York Times
Read full story at The New York Times
Aug 22, 2010
How To Shop for a Mortgage
Finding a mortgage can be a strenuous process. Not only are there hundreds of institutions offering mortgages, it can seem as though there are dozens of different types of mortgages themselves. Different interest rates, different lengths and other features can be confusing. This article describes some of the different options you may encounter as you shop for a mortgage.
Aug 12, 2010
Free Homebuyer's Workshop
Sat 8/28/2010
9am to 12pm
FAIRWINDS Corporate Center
3087 N Alafaya Tr
Orlando, FL 32826
Thinking about purchasing a home? How can I best prepare for the homebuying process? Please join us at this special complimentary workshop designed especially for homebuyers. Area professionals will share their expertise on topics including: understanding your credit report, homeowners insurance, appraisal and home inspection process, what to expect at closing and much more. Plus, Fairwinds lending experts will provide you with techniques and strategies to help improve your credit score. more info
9am to 12pm
FAIRWINDS Corporate Center
3087 N Alafaya Tr
Orlando, FL 32826
Thinking about purchasing a home? How can I best prepare for the homebuying process? Please join us at this special complimentary workshop designed especially for homebuyers. Area professionals will share their expertise on topics including: understanding your credit report, homeowners insurance, appraisal and home inspection process, what to expect at closing and much more. Plus, Fairwinds lending experts will provide you with techniques and strategies to help improve your credit score. more info
Aug 1, 2010
Homes Commonly Selling Over List
Buyers beware! A strong indictor that the east Orlando buyer’s market is officially dead: 1/3 of all single family home sales in the past 30 days sold for over list. Add to that: 20% of these buyers were all cash buyers. Woh. Where have the deals gone? Aren’t homes selling for a song? Can I still get my dream home with a low ball offer?
Buyers of normal homes paid more for their home & closed faster. On average, these buyers paid a 4% premium on their purchase & closed 25% faster (compared to overall sales during same period).
Buyers of distressed homes (short sales & bank-owned) paid less for their home & closed faster. On average, these buyers saved 5% on their purchase & closed 20% faster (compared to overall sales during same period).
What does this mean? For buyers, it’s critical to understand the marketplace here & now (not 2009, not at the ‘boom’, not what your sister experienced in Chicago) & what to expect from the home buying process. A knowledgeable buyer armed with real-time sales info can be confident they are writing their strongest possible offer to get the best home for the best value – isn’t this ultimately what every buyer wants?
Buyers of normal homes paid more for their home & closed faster. On average, these buyers paid a 4% premium on their purchase & closed 25% faster (compared to overall sales during same period).
Buyers of distressed homes (short sales & bank-owned) paid less for their home & closed faster. On average, these buyers saved 5% on their purchase & closed 20% faster (compared to overall sales during same period).
What does this mean? For buyers, it’s critical to understand the marketplace here & now (not 2009, not at the ‘boom’, not what your sister experienced in Chicago) & what to expect from the home buying process. A knowledgeable buyer armed with real-time sales info can be confident they are writing their strongest possible offer to get the best home for the best value – isn’t this ultimately what every buyer wants?
Jul 22, 2010
View From the Trenches: Single Family Homes
In the market for a single family home in east Orlando? Here is sales activity for the past 30 days, a likely indicator of what you will experience in your house hunt.
East Orlando has closed 138 single family home sales and 72% of these were distressed sales (short sale or bank-owned). Average sale price was $202 for a normal sale & $151 for a distressed sale.
21% were cash deals. A very significant detail – no buyer with a mortgage can compete with a cash buyer. An all cash offer trumps even your higher priced offer (with financing). If you’re financing your home purchase (and most of us do), expect your buying competition may likely be paying all cash.
Sellers got 98% of their asking price. Buyers who intend to gamble with low ball offers like in spring 2009 are wasting everyone’s time. Homes are priced right today & are selling. The strong buyer’s market has become a thing of the past with fresh, hot buying competition for affordable homes in move-in ready condition. These buyers are out bidding each other for these homes & commonly drive the selling price above list.
Top selling communities: Waterford Lakes (19), Avalon Park (16) and Waterford Trails (9). I’m loving seeing old home inventory getting sold/closed & seeing new families move in to these communities every day. After nearly of year of this hot activity, the surplus of distressed sales are going to be gone, gone, gone before we know it.
Normal sales went under contract after 64 days on average (plus another 42 days to close on average). Distressed sales went under contract after 93 days on average (plus another 83 days to close on average). Buyers considering taking on a short sale, do the math (93 days + 83 days = just under six mos). You’re needing & wanting a home yesterday – can you wait six months to move in to your new home?
East Orlando has closed 138 single family home sales and 72% of these were distressed sales (short sale or bank-owned). Average sale price was $202 for a normal sale & $151 for a distressed sale.
21% were cash deals. A very significant detail – no buyer with a mortgage can compete with a cash buyer. An all cash offer trumps even your higher priced offer (with financing). If you’re financing your home purchase (and most of us do), expect your buying competition may likely be paying all cash.
Sellers got 98% of their asking price. Buyers who intend to gamble with low ball offers like in spring 2009 are wasting everyone’s time. Homes are priced right today & are selling. The strong buyer’s market has become a thing of the past with fresh, hot buying competition for affordable homes in move-in ready condition. These buyers are out bidding each other for these homes & commonly drive the selling price above list.
Top selling communities: Waterford Lakes (19), Avalon Park (16) and Waterford Trails (9). I’m loving seeing old home inventory getting sold/closed & seeing new families move in to these communities every day. After nearly of year of this hot activity, the surplus of distressed sales are going to be gone, gone, gone before we know it.
Normal sales went under contract after 64 days on average (plus another 42 days to close on average). Distressed sales went under contract after 93 days on average (plus another 83 days to close on average). Buyers considering taking on a short sale, do the math (93 days + 83 days = just under six mos). You’re needing & wanting a home yesterday – can you wait six months to move in to your new home?
Jul 16, 2010
What Buyer’s Market?
The buyer’s market in east Orlando is officially over. Buyers can no longer expect their every wish to be granted when buying a home – lowball offers, seller-paid closing costs & seller-paid home repairs are a thing of the past.
The competition for affordable homes in move-in ready condition is so strong, buyers are finding themselves in bidding wars, driving up the sales price over asking & still losing out on their first choice of home. A buyer wanting a move-in ready home at $200,000 & under can expect to write numerous offers due to strong demand & competition particularly from first-time homebuyers.
Affordable homes in move-in ready condition commonly receive multiple offers – four or five offers within 24 hrs of hitting the market is not unheard of. And 1/3 of sales in east Orlando are all cash, something no ‘regular’ buyer (with a mortgage) can compete with.
Distressed sales (short sales or bank-owned) are already at bottom-of-the-barrel prices where there simply is no more room for a buyer to come in and offer less than asking. Homes are selling at 97% of asking price in east Orlando in the past 30 days, so buyers who intend to submit a lowball offer are simply wasting their time in this market.
The competition for affordable homes in move-in ready condition is so strong, buyers are finding themselves in bidding wars, driving up the sales price over asking & still losing out on their first choice of home. A buyer wanting a move-in ready home at $200,000 & under can expect to write numerous offers due to strong demand & competition particularly from first-time homebuyers.
Affordable homes in move-in ready condition commonly receive multiple offers – four or five offers within 24 hrs of hitting the market is not unheard of. And 1/3 of sales in east Orlando are all cash, something no ‘regular’ buyer (with a mortgage) can compete with.
Distressed sales (short sales or bank-owned) are already at bottom-of-the-barrel prices where there simply is no more room for a buyer to come in and offer less than asking. Homes are selling at 97% of asking price in east Orlando in the past 30 days, so buyers who intend to submit a lowball offer are simply wasting their time in this market.
Jul 1, 2010
Verifying Borrowers’ Finances
Mortgage brokers and lenders will often caution borrowers against charging up their credit cards or changing jobs before the closing date on a home loan. Now that advice seems especially prudent.
On Jun 1, Fannie Mae, the government-sponsored company that establishes the underwriting standards for most of the nation’s mortgages, started requiring lenders to recheck a borrower’s finances shortly before closing the loan. If a broker or lender finds significant changes, the loan could be delayed, or in some cases, denied.
Read full story at New York Times
On Jun 1, Fannie Mae, the government-sponsored company that establishes the underwriting standards for most of the nation’s mortgages, started requiring lenders to recheck a borrower’s finances shortly before closing the loan. If a broker or lender finds significant changes, the loan could be delayed, or in some cases, denied.
Read full story at New York Times
Jun 1, 2010
Four Ways To Avoid Getting Outbid
Q: I am a first-time buyer trying to buy a condo, but every time I put in an offer, someone else gets it instead. In some cases, I was muscled out by people who could pay cash. I can't afford to do that. Is there any other way I can win one of these bidding wars?
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