Schuylkill County Real Estate: November 2009

One of the most important steps in buying a house is financing the purchase. Your credit is one of the first things that lenders examine when considering you for a loan. Making payments on time is the most important way to establish good credit. A pattern or history of frequent late payments can lead to a poor credit score that could negatively affect your ability to be approved for future loans, or result in home financing at a higher interest rate. Conversely, having a good credit score will let you secure a home loan at a lower interest rate.

 

Your credit report

When you are being considered for a home loan, mortgage lenders will review your credit report, which displays your credit history and credit score. Your credit score, also called credit rating, is based on a summary of your overall credit history. It is shown as a number that provides lenders with a fast and objective way to predict how likely you are to repay a loan.

Lenders use your credit report to decide on the following:

• Whether or not to approve you for a loan
• The type of loan for which you qualify 
• The interest rate to charge you

The importance of good credit

Your credit history will follow you throughout your life. Therefore, making good credit decisions along the way will help a great deal when you're ready to realize the dream of home ownership.

Getting a copy of your credit report

Under the Fair and Accurate Credit Transactions Act of 2003  you're entitled to a free copy of your report, once a year, from each of the three credit bureaus -  Equifax, Experian and TransUnion. Your free credit report should tell you what's in your file both outstanding debts and those you've paid off, along with how well you've kept up with your payments and who has seen the information.

Important Links

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• Why you should hire Me as your Realtor
• Contact Me

I can help you with every aspect of buying or selling your home because I'm experienced, because I am a Better Homes and Gardens Rand Realty Real Estate Professional . . .and because I care.   

As your Better Homes and Gardens Rand Realty Sales Professional, I will provide you with the information you need to make an educated decision.

The relationship between a home buyer or seller and their agent is based on trust, shared goals and understanding.  I strive to continually improve and to do this I listen and take the needs and wants into consideration.

For assistance with any of your real estate needs, please contact me, whether it's to get started on helping you realize your goals and dreams, or just to ask a question - no pressure, no hassle, no obligation - just a friendly conversation. I would welcome the opportunity to make a difference for you. 

Anthony Stokes Pereira Office: (845) 770-2188 Cell: (845) 538-7021 Fax: (845) 624-7137 Email: anthony.stokespereira@randrealty.com www.anthonystokespereira.com

  

Consumers in Pennsylvania are protected in a myriad of ways from potential frauds and dangers.  State licensing and regulation make it all but impossible for a real estate practitioner to “get away” with an offense against a consumer.  New licensees are indoctrinated into this matrix, and must undergo biannual ethics training to reinforce the state policy.  Lastly, all practitioners who are members of the National Association of Realtors MUST subscribe to it’s NAR Code of Ethics (one of the first of it’s kind in the nation) and local branches of the NAR are aggressive in prosecuting reported violations.

So why is it that Real Estate agents are still considered one of the most “shady” people in business?

In a nutshell, it’s because the typical consumer has no idea about the process by which they engage the real estate community for the purpose of purchasing a house.  And as a result of that ignorance combined with poor communication from real estate practitioners, the public finds that their expectations have not been met.

Not a week goes by when I don’t interact with a consumer (not a client) who has found me on the internet.  In most cases, they are in the initial stages of looking at homes, mostly online.  Often they declare their intention “not to sign with anyone” and “check out open houses”, etc.  When I question what the problem is with hiring a buyer’s agent they become either a) confused or b)suspicious (OK, sometimes both).  This is the conversation where I’m supposed to explain the role of a buyer’s agent (per PA law – known as the “first substantive discussion about real estate”).  Most consumers will tend to view this as a thinly-veiled sales pitch.  It’s frustrating to me as a professional agent on several levels:

a) I HATE being considered a sales pitchman.  Not to mention the fact that buyers aren’t financially obligated to a buyer’s agent anyway!

b) I’m REQUIRED to take the time to explain the law in Pennsylvania (BTW this is known as the PA Consumer Notice).  I know it can be boring.

c) I just KNOW that the consumer isn’t going to retain any of what I’m saying.  I know I wouldn’t myself…legaleze is sooo dry.

What’s worse, it does make perfect sense to use this juncture of my new relationship to promote my services over those of my competitors, right?  Would would you do, if you were just told by a prospective customer that they intended to go look at homes without you, thereby exposing them to your competitors without you having “fired a shot”? Hence the title of this post.

The question is “how to get the Consumer law into the consumer’s hands and understood by them ahead of time, as well as the opening presentation of the agent’s services so as to pique the consumer’s interest in talking some more…

There’s nothing so empowered as a home buyer who knows exactly what’ going on and why.  That’s my goal from moment one when I meet a prospective client.

So, the challenge the real estate industry faces is educating the public about the process of home sales and the necessary relationships that arise from it, as well as the points at which a consumer can elect to retain a pro on their behalf.  Educated customers can spot the experienced agents and avoid getting stuck in a business relationship they regret.  Agents are held to a higher standard by the consumer.  Everyone knows where they stand.  I like it!  How to make that happen….hmm.

Buying a home should be fun, not stressful. As you look for your dream home,  keep in mind these 10 Tips for making the process as peaceful and stress free as possible.

1. Find a Real Estate Agent who you can connect with. Home buying is not only a big financial commitment, but also an emotional one. It's critical that the Realtor you choose is both highly skilled and a good fit with your personality.
2. Remember, there's no "right" time to buy, just as there's no perfect time to sell. If you find a home now, don't try to second-guess interest rates or the housing market by waiting longer- you risk losing out on the home of your dreams. The housing market usually doesn't change fast enough to make much difference in price, and a good home won't stay on the market long.
3. Don't ask for too many opinions. It's natural to want reassurance for such a big decision, but too many ideas from too many people will make it much harder when it's time to make a decision. Focus on the wants and needs of your immediate family- the people who will be living in the home.
4. Accept that no house is ever perfect. If it's in the right location, the yard may be a bit smaller than you had hoped. The kitchen may be perfect, but the bathroom is dated. Make a list of your top priorities and focus in on the things that are most important to you. Let the minor ones go.
5. Don't try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to "win" by getting an extra-low price or by refusing to budge on your offer may cost you the home you love. Negotiation is give and take.
6. Remember your home doesn't exist in a vacuum. Don't get so caught up in the physical aspects of the house itself- room size, kitchen, etc, -that you forget about important issues such as noise level, location to amenities, and other aspects that also have a big impact on your life.
7. Plan ahead. Don't wait until you've found a home and made an offer to get approved for a mortgage, investigate home insurance, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.
8. Factor in maintenance and repair costs in your post home buying budget. Even if you buy a new home, there will be costs. Don't leave yourself short and let your home deteriorate.
9. Accept that a little buyer's remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big financial commitment and it also yields big benefits. Don't lose sight of why you wanted to buy a home and what made you fall in love with the property you purchased.
10. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated a historically stable average of 5.4 percent annually (National Association of Realtors),  a home's most important role is to serve as a comfortable, safe place to live.

An important thing to remember is that you don't have to go through the home buying process alone. I can't emphasize enough how important it is to have the right Realtor by your side. For a smooth, easy and stress-free as possible home buying experience in the Fox Cities Valley and Appleton, WI; call Bob Edwards from Coldwell Banker- The Real Estate Group today! 920-202-2431 is my cell phone or email me at bedwards@coldwellhomes.com to schedule a no cost, no obligation consultation.

 

When purchasing a HUD home, there are misconceptions to replace with facts and advantages to consider. The following is information about the purchase of Arizona HUD homes.

First, exactly what is a HUD home?  When a home is purchased with a FHA (Federal Housing Administration which is a sub-agency of HUD) insured loan and the borrower defaults on the loan, the lender may file a claim against the FHA insurance fund and convey ownership  to HUD who then sells the home at market value to get back some of the loss from the foreclosure. 

One misconception I have heard is that HUD homes are always in poor condition. I find that just like bank owned or short sales, HUD homes can be very clean and well taken care of  or a disaster or anywhere in between. One of the advantages to a HUD home is that before HUD homes are listed, HUD orders an appraisal and property/pest  inspection of the home. Anyone can go to the HUD website http://www.mcbreo.com/and read the report to see the condition of the property before viewing it.

If the property inspection determined that the property needs repairs but less than $5,000 and the buyer is using an FHA insured loan, for the home to be eligible for the FHA loan an escrow repair is established to cover the costs of the repairs to the home.  The costs of the repairs are included in the loan amount and repaid by the borrower as part of the house payment.

It is advised that a potential buyer conduct their own home inspection by hiring a competent inspector. HUD homes are sold in "as-is "condition and HUD makes no warranties or quarantees about the condition of the home and will make no repairs. This is also the case in the purchase of a lender owned foreclosure property.

Another advantage for owner occupants (person that will live in the home as his or her primary residence within 30 days of the close of escrow) who are interested in purchasing a HUD home is that during the first 10 days a HUD property is listed to the general public, there is no competition from investors. Bids from Owner Occupant Purchasers only are accepted.  All bids placed by Owner Occupants that are submitted during those ten days are opened on the 11th day and are considered as though they were received simultaneously. If there is no winning bid during those ten days the bidding is opened to include investors.

Another misconception is that HUD provides loans to persons who would not under other circumstances qualify for a loan. HUD does not provide financing for its properties. Before a person can place a bid on a HUD home they must be pre-approved for a real estate loan or have proof of  sufficent cash to purchase.

A great advantage for those who do not have the downpayment required for a typical loan is that a buyer can purchase a HUD home for as little as $100 down. It is important to discuss the costs with an experienced lender and the price to bid with a HUD approved agent. Before a bid can be submitted, the buyer must have on deposit with the real estate broker an earnest deposit check. If the purchase price is $50,000 or less the required check amount is $500. If the purchase price is more than $50,000 the check amount is $1,000. Any unused portion will be reimbursed to the buyer at close of escrow.

The advantage of the sealed bid process is it eliminates many of the hassles associated with the typical  lender owned or preforeclosure transaction where bidding wars and long waits are common. If during the first ten days of owner occupant bidding, no offer is accepted, bids are reviewed daily and the bidder with the winning bid is notified the following day. If more than one acceptable bid is placed, the bid with the highest net amount to HUD wins the sale.

If you have hesitated about considering purchasing a HUD home, realize that these properties open up another opportunity for purchasing a home at an afforadable price. With the assistance of an experienced HUD approved agent and  a lender who understands the process, replace the misconceptions with facts and consider the advantages of purchasing a HUD home.

The process for buying a HUD home is different from a normal home purchase. Access to view HUD homes and place bids is restricted to a HUD approved real estate agent. For a partial list of AZ HUD homes http://www.eastvalleyphoenixhomes.com/hudhomes.html).

To get a list of all HUD homes that meet your criteria or to discuss if a HUD home purchase would be in your best interest, call Deanne Olivas, an approved HUD agent, at American Allstar Realty 480 452-5567.

Deanne Olivas

American Allstar Realty

480 452-5567

http://eastvalleyphoenixhomes.com

JUST WHAT IS IT THAT REAL ESTATE LICENSEES DO??  Part I.

"YOUR MISSION, SHOULD YOU CHOOSE TO ACCEPT IT . . . "  is to manage the orderly transfer of real property from a seller to a buyer.  The average consumer doesn't understand a fraction of what we do to help them accomplish their goal. 

SELLERS.  Home sellers are presented a simple-to-complex marketing plan by listing agents prior to listing the property for sale.  The listing agent promises to perform a series of showing, advertising activities geared to receiving contract offers.

BUYERS.  Buyers are assisted in their home search by agent(s) who helps to locate, tour properties for sale, write and negotiate the contract and arranging for settlement services.  

Sounds easy doesn't it?  Actually it is, in the hands of experienced listing and buyers agents and if nothing unusual occurs. 

THE MOST HELPFUL AND LEAST UNDERSTOOD PART OF LISTING AND SELLING REAL PROPERTY is the complex and institutionalized systems which include the brokerages employing the licensed agents and brokers, the Multiple List Systems that make the homes for sale information available to licensees and now to the public, the board approved forms that provide consumer protections,  

Achieving the consumer's goal of selling or buying real property requires the services of a variety of service providers in addition to the real estate licensee.  Achieving the orderly transfer of real property from a seller to a buyer requires services of vendors that perform critical tasks to help the consumer achieve their goal.  The vendors include but are not limited to:  mortgage providers, home inspectors, termite/radon inspectors, appraisers, title services which include or are managed by attorneys. 

WOW!  How do we keep up with all of these tasks that are necessary to get to the settlement table?  I'm going to disclose a secret that will help many consumers understand how things can go so smoothly and the consumer's goal of selling and buying real estate is achieved. 

IT'S ALL IN THE CONTRACT!

That's right.  IT'S ALL IN THE CONTRACT!

Getting to the settlement table begins with the selection of an experienced listing or buyer's agent who will MANAGE THE CONTRACT OF SALE.   To demonstrate the importance of understanding contract management, below are the titles included in a typical Contract of Sale.

• Description of Real Property
• Price and Financing
• Deed of Trust
• Deposit
• Down Payment
• Settlement
• Equipment, Maintenance and Condition
• Utilities
• Personal Property and Fixtures
• Financing Terms
• Appraisal
• Purchasers Representations
• Access to Property
• Termite Inspection
• Repairs
• Damage and Loss
• Title
• Possession Date
• Fees
• Broker's Fee
• Adjustments
• Attorney's Fees
• Performance
• Default
• Assignability
• Definitions
• Void Contract
• Warranty

Listing agents and Buyers agents must not only understand the meaning and execution of each of these titles, they should help the seller or buyer understand the meaning of all parts of the contract that apply to their particular transaction. 

Next:  What Real Estate Licensees Do Not Do.

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988.

 

Easy answer, 60 days.  But I guess that depends on what kind of Pre-Approval you received or want for that matter.  Actually, the answer to such a question depends upon three factors:

-  You, as the consumer. 

-  The Buyer's Agent who is helping you find a home.

-  And the quality of the Pre-Approval you receive in the first place.

Ten Seconds, GO - You're interested in buying a home.  You even find a few that tickle your family bone.  But you need financing because you probably don't have the cash to buy it outright. Which leads to...

Nine Seconds - You're smart and seek out a Buyer's Agent to represent you. This will provide protection in your favor.  They represent you and only you. 

Eight Seconds - That agent may turn you onto a few folks like me who can help you out from the financing end.  And that doesn't mean you shouldn't shop on your own.  But buying a home isn't just about getting the lowest rate with no fees (an oxymoron if I've ever encountered one), it's about trust.  Interview those who express interest in earning your business and keeping it.  If they have the lowest rate with no fees, I can only hope they are in business when you need to do business again.

Seven Seconds- The Pre-Approval is more than just an application and credit check. There's some serious competency going on. They ask for your most recent pay-stubs, W-2's, bank statements, and the last time you had a wet dream about Richard Gere. 

Six Seconds - You find a house that you want to call home and a Sales Agreement has been signed and accepted by all parties. And there you are.

Five Seconds- You're hopefully just padding the documentation that you've already given to the Mortgage Company you choose.  I recommend Sardi Mortgage Inc, who isn't licensed just yet ... but when you hear Sardi, that should mean something. I'm not sure what, but it means something. Maybe it just means that there is an individual who is all over your particular file like white on puss.

Four Seconds - Appraisal is ordered and done. The rest of your file is pretty complete because everyone got along and did what needed to be done.

Three Seconds -  The complete transaction goes into Underwriting, those dastardly folks we think of who hate closing loans.  I'll give you a bit of info here, and I usually don't stick up for Underwriters.  They only get paid when folks close loans.  Without us, there is no them.  So, that's that.  In business, there's more to it than that, but that is a pretty accurate description.

Two Seconds - You are CLEAR TO CLOSE.  If there were three words that were magical in this industry, those are they. 

One Second Left - It's a proclamation of your destination.  You hit home!

And when there's no time left, that's the perfect time to be imperfect.  And that's the perfect way NOT to close.

 

Jason Sardi

Mortgage Consultant

610-653-0317

jsardi@ihmci.com