Aren't you glad you didn't hit the panic button?
I'm talking to you folks who bought a house this spring before April 30th and were told you could get the government's tax credit AS LONG AS YOU CLOSED BEFORE JUNE 30th! So what did you do? You kinda rushed and thank God! You got an offer accepted by April 30th!
Whew! But wait... a new stress thing! You need to close by June 30th! OK, sez you. But it wasn't really up to you was it? Your bank had to get their stuff done in order for you to close. Really almost had NOTHING to do with you at all.
So you kept in touch with the bank.... "are we OK ?"... "did we get the committment yet?"... "are we 'cleared to close'?"... "hey that June 30th date is getting close! We are depending on that $8,000 credit you know!"...
There were many out there who were sweating bullets! Yup, they didn't think the bank was going to get the file closed in time! Oh no!!!! In fact there were a few that were threatening to cancel ther contract because of this.
What's going on ???? Well, any time a deadline is imposed, everyone and their brother is "pushing" toward that date! The banks were "overwhelmed"! So the powerful banking world lobbied our fearless leaders and asked for a NEW date.
So guess what? Here's what your government is saying now, " As long as you really did have a contract by April 30th... we are going to extend the deadline... Your bank will have until September 30th!"
Well, it's not totally OK yet... the House has to approve this measure... but the Senate already did... Keep your eyes and ears open! Your government is all over it!
Good luck my friends!
Showing posts with label mortgages. Show all posts
Showing posts with label mortgages. Show all posts
Thursday, June 17, 2010
Thursday, April 29, 2010
Do you know what the BIGGEST stumbling block is?
One word: Appraisal.
Yup. That's the big stumbling block. We get a buyer that wants to buy. We have a seller that is agreeable to the price proposed by the buyer. We do all the inspections. We apply to the lending institution The bank sends out the appraiser. The appraiser reports that they can't "find any suitable comps".
Now what? The bank sends a letter to the buyer and tells them that the mortgage application is denied because the house is not worth what the buyer and seller (and presumably two real estate agents) thought.
Rules and regulations tightly monitor and restrict what the real estate agents can do with the appraiser in the lines of saving the transaction. One of the most frustrating factors is that the appraisers are told they can't go any further back than 3 months. In many areas this means they really DON'T have any similar sales to use.
About the only solution is that the seller agrees to take the lower appraised price. If they can. Often they can't. Often they owe too much money. they'll end up upside down as they say in the business!
This recent re-occurrence is pretty difficult to avoid and predict.
So what can be done to safeguard against it ? My sources at 1stPriority Mortgage suggest that we avoid seller concessions whenever possible. Seller concessions as a general rule skew the actual fair market value, by adding thousands of dollars to the sale of the property.
I am counseling my agents to "think like the banks/appraisers" when obtaining a listing. That means doing an appraisal when speaking with a potential home seller that is more like what we can expect when the house goes under contract. This procedure is referred to in our profession as a CMA... comparative or competitive market analysis.
So, you as a home seller, need to make sure that the real estate agent who is pitching to get your listing is aware of these conditions. They need to be savvy and realistic in detailing their perception of where to list your property and what is the most likely sales price.
Appraisals. A tough pill to swallow right now, but it's real and it's here... right now. Be advised!
-Your friend in Real Estate... Steve
Yup. That's the big stumbling block. We get a buyer that wants to buy. We have a seller that is agreeable to the price proposed by the buyer. We do all the inspections. We apply to the lending institution The bank sends out the appraiser. The appraiser reports that they can't "find any suitable comps".
Now what? The bank sends a letter to the buyer and tells them that the mortgage application is denied because the house is not worth what the buyer and seller (and presumably two real estate agents) thought.
Rules and regulations tightly monitor and restrict what the real estate agents can do with the appraiser in the lines of saving the transaction. One of the most frustrating factors is that the appraisers are told they can't go any further back than 3 months. In many areas this means they really DON'T have any similar sales to use.
About the only solution is that the seller agrees to take the lower appraised price. If they can. Often they can't. Often they owe too much money. they'll end up upside down as they say in the business!
This recent re-occurrence is pretty difficult to avoid and predict.
So what can be done to safeguard against it ? My sources at 1stPriority Mortgage suggest that we avoid seller concessions whenever possible. Seller concessions as a general rule skew the actual fair market value, by adding thousands of dollars to the sale of the property.
I am counseling my agents to "think like the banks/appraisers" when obtaining a listing. That means doing an appraisal when speaking with a potential home seller that is more like what we can expect when the house goes under contract. This procedure is referred to in our profession as a CMA... comparative or competitive market analysis.
So, you as a home seller, need to make sure that the real estate agent who is pitching to get your listing is aware of these conditions. They need to be savvy and realistic in detailing their perception of where to list your property and what is the most likely sales price.
Appraisals. A tough pill to swallow right now, but it's real and it's here... right now. Be advised!
-Your friend in Real Estate... Steve
Sunday, June 29, 2008
Financing
I got a call at my home yesterday from someone I did not know. They told my wife that they had seen my name on a website and got my number. OK. So I got on the phone and was wrestling with trying to both understand and explain how this real estate home buying process worked.
The main thing the caller wanted to know was the address of a property I had listed. I gave it to them. But I could sense they were new to the home buying process, so I initiated the discussion of financing. In other words, "Have you spoken to a lending institution yet?"
Their response to me was, that they weren't worried about that. They were sure they could afford between $100,000 and $200,000. But, you know what? In today's real estate market, if you are going to make a purchase offer that includes a mortgage clause, you had better have some documentation that you are qualified to purchase this home. Very few sellers will take your word for it. AND... you will find that most professional real estate agents will not want to take you out looking until it is certain (and I mean documented by a letter from a reputable bank or institution) that you can actually do this.
So, get your finances together. Go to a lending institution, and then you'll be on your way.
If you are in the Albany NY area and would like some assistance in finding financing, I know a lot of them! email me at sstaples@realtyusa.com I'll help ya!
Have a great Sunday!
The main thing the caller wanted to know was the address of a property I had listed. I gave it to them. But I could sense they were new to the home buying process, so I initiated the discussion of financing. In other words, "Have you spoken to a lending institution yet?"
Their response to me was, that they weren't worried about that. They were sure they could afford between $100,000 and $200,000. But, you know what? In today's real estate market, if you are going to make a purchase offer that includes a mortgage clause, you had better have some documentation that you are qualified to purchase this home. Very few sellers will take your word for it. AND... you will find that most professional real estate agents will not want to take you out looking until it is certain (and I mean documented by a letter from a reputable bank or institution) that you can actually do this.
So, get your finances together. Go to a lending institution, and then you'll be on your way.
If you are in the Albany NY area and would like some assistance in finding financing, I know a lot of them! email me at sstaples@realtyusa.com I'll help ya!
Have a great Sunday!
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