For Buyers

As we enter 2017 there will still be hurdles for buyers. Financing, the quality and variety and supply of inventory and the buying process in general are areas that you need to be familiar with. As an educated buyer you will make the best decisions – I am here to help you with that process.

 

Interest Rates: Monday, May 15, 2017
Based on a loan amount of $200,000
Program Term Int. Rate APR
FHA 30 Yr 4.125% 5.211%
FHA 15 Yr 3.750% 4.860%
VA 30 Yr 4.125% 4.362%
VA 15 Yr 3.750% 4.278%
Conv – 95 LTV 30 Yr 4.250% 4.758%
Conv – 95 LTV 15 Yr 3.625% 4.068%
Conv – 80 LTV 30 Yr 4.250% 4.362%
Conv – 80 LTV 15 Yr 3.625% 3.812%

Approachable and knowledgeable representative Local underwriting. Unless you are a cash buyer you will need to arrange for a loan. The lender you choose can vary from your local credit union to a national bank, they all have pluses and minuses. The most important qualities?FINANCING

We are going to see interest rates continue to rise this year, rates can only be locked in for a set period of time, having a lender who is knowledgeable and can complete a transaction in a timely manner will be more essential than ever.
You will have an array of loans to choose from. VA, Conventional, FHA, are the most common. All have their own rate and fee structure and underwriting and down payment requirements will vary. Every buyer has a different set of qualification issues and only a good lender can guide you thru what you need. If credit needs some repair, your job needs seasoning or a down payment source needs to be more fully documented – you need to know up front.
Securing a pre-approval (not an online pre-qualification) before you start to look at homes is a critical step. There are listings that might not be eligible for the type of financing you will need and sellers and their agents require that a buyer has a valid pre-approval letter before they will consider an offer.
I can help you find the right lender among several I have worked with and come up with a Multiple Offer strategy that might save you some money AND win you the house!

QUALITY AND VARIETY OF INVENTORY

Sellers these days can be someone who has owned their home for 30 years or an investor who bought the property and a distressed sale at the bottom of the market and is now flipping it.  Each and every house we look at will have a different set of issues that can make the offering process challenging. We are currently seeing historically low inventory.

 

 

 

 

 

 

 

 

 

 

List Prices within a given neighborhood will vary depending on the:

  • “type” of seller
  •  home condition with-in a given price range will vary
  • supply vs demand
  •  seller motivation will vary
  • Short sale sellers and institutional sellers view the negotiation process differently
  • time to close can take 3 weeks or 3 months depending on the sellers circumstances
  •  lender approval is about the house(the security) as much as it is about your ability to repay the loan – some houses can’t be financed.
  • The purchase of a fixer or a home that has been flipped recently can delay time frames or require alternate financing.

We will work together and figure out the best areas and houses for you. Your education process starts immediately!

THE PROCESS

Looking can take as long as it needs to take for you to find the right house, I am in it for the long haul.

Web Browsing – everyone has their favorite sites. There is a mobile app on my Remax page that is a handy download. APP FOR PROPERTY SEARCH

Shopping – Of course going out and looking at properties is more fun than getting pre-approved. When you find a home or homes you want to see you will get me the address. I need to verify that it is still an active listing and what the showing instructions are. Vacant homes are easy, occupied homes require an appointment and homes that are rented can take up to 48 hours to get into.

NEXT STEPS

What’s it worth?
One of my primary goals is to help you pick the neighborhood and house that will best suit your needs, to that end we will spend some time looking at homes in your price range in a variety of neighborhoods. You will be surprised how quickly you will be able to spot homes that are well priced verses overpriced. While we are looking at the houses we will also be judging the quality of construction and what repairs if any your lender or your inspector will focus on. No house is perfect but I can help you evaluate and prioritize necessary work orders you might choose to take on.

Making the offer
Once you zero in on your preferred area we will be looking at anything and everything in and slightly above your price range. At this time if something has been on the market more than 2 weeks; the price is too high. Sellers might be prepared by their agent to expect a bit less than their asking price but no seller is going to take less then market if they can help it. As a buyer, you will need to be prepared to pay a fair market price. In the case of VA offers or instances where you are asking a seller to pay a portion of your closing costs you need to be prepared for how they will see your offer. We will be talking more about this when we sit down.

Contingencies
Your offer will contain contingencies. For instance an inspection contingency gives the buyer a period of time (usually 7 to 10 days) to hire various inspectors to look at the house. The inspection is done at the buyer’s expense after the seller and buyer mutually agree to the terms of a sale. If the inspection goes well and the buyer moves forward then the inspection contingency is waived – in the event there are issues that the seller can’t or won’t correct and the buyer backs out of the sale then you have used the inspection contingency as your “out” and you get your money back. Other contingencies we will discuss are:

  • Neighborhood Review
  • Financing
  • Appraisal
  • Title

Timing
Generally the time frame is a minimum of 30 days to a maximum of 60 days to go thru the buying process. The average is 45 days and depending on the sellers circumstances that is a pretty good number. Each phase of the process has its own time frame.
Once the buyer submits an offer to the seller the seller has a couple days to respond by either accepting the buyers offer as written or more often countering the buyers offer. Back and forth we go until “mutual acceptance” is arrived at. All the dates and timelines in the contract begin at the point of mutual acceptance. Part of my job is to keep all parties on track with regard to the timelines. Missing a deadline can cost a buyer his earnest money or even result in losing the house.