I personally am not fond of making back up
contracts. The seller always feels as though he has the world by a
string at this moment and does not negotiate nearly as well as they
will do after they have a contract fall out from under them. I have
let both the agents know that we are interested if something
happens to their current contract.
So long way of saying yea lets just get
our ducks in a row and keep looking. If either of these become
available we will write a contract then.
An appraisal of real estate is the
valuation of the rights of ownership. Instead of just creating the
property value, the appraiser uses market data to derive a value
estimate. The appraiser must take the site, amenities and the
physical condition of the property into consideration when
compiling the report. Before the appraiser can come to a final
opinion of value, there must be a good deal of data conducted and
collected. He will inspect the property as part of preparing the
report.
The need to accurately define the purpose
of the appraisal is essential due to the many types of value, such
as Fair Market Value, Insurance Value, Tax Value and Value In
Use.
Mortgage companies request the majority of
real estate appraisals to confirm the property's purchase price
for loan purposes. The mortgage company's position is the
following:
· It has two sources of repayment:
the purchaser's income and the property.
· The responsibility to repay the
loan is not based upon the property's value, so the purchaser is
obligated to pay the note even if the property value declines to
zero.
· The loan may be insured or
guaranteed by a government agency.
· The government does not promise
to pay the purchaser's debt if the property value is wrong.
· If the loan is greater than 80%
of the value, a private mortgage insurer may insure a portion of
the loan.
· There is no decrease in risk for
the purchaser regardless of the loan-to-value ratio. The investment
by the purchaser is the same, a mixture of personal cash and a loan
that must be repaid.
Once you know what you can afford it will
make it easier for a local real estate agent to help you find homes
in the area of your choosing.
Making an offer
This process you should discuss with your
real estate agent. If the seller does not accept your offer and
makes a counter offer (rejects all or part of your offer), you may
need to bargain until you both agree to the terms of the sale. When
you plan to finance the purchase of your home with an FHA loan,
your sales contract will include the FHA amendatory clause. This
clause states that if the appraisal (the estimate of the
property's fair market value) comes in at a price below the sales
price, you can decide not to proceed with the purchase.
Getting a home inspection
Buying a home is one of the most important
purchases you will make in your life, so protect yourself by making
sure that the home you want to buy is in good condition. A home
inspection is an evaluation of a home's condition by a trained
expert. During a home inspection, a qualified inspector takes an
in-depth and fair look at the property you plan to buy. The home
inspector does not estimate the value of the house
The inspector will:
Evaluate the physical condition: the
structure, construction and mechanical systems
Find and list items that should be
repaired or replaced
Estimate the remaining useful life of
major systems (such as electrical, plumbing, heating, air
conditioning), equipment, structure and finishes
After the inspection is complete, you will
receive a written report of the home inspector's findings, usually
within five to seven days.
Home inspections are not appraisals. A
property appraisal provides an estimate of a property's market
value. Lenders require appraisals on properties before loan
approval because they do not want to loan more than the property is
worth. The FHA requires lenders to obtain appraisals of properties
backing FHA-insured loans. The FHA requires appraisals for three
reasons:
To estimate the market value of the
property
To make sure that the property meets FHA
minimum property requirements/standards (health and safety)
To make sure that the property is
resalable.
The appraisal will note problems that are
easy to see with the property and non-compliance with HUD's
minimum property requirements/standards. These problems may not be
the same as those items noted in a home inspection report.
FHA does not guarantee the value or
condition of your future home, and FHA does not perform home
inspections. If you find problems with your new home after closing,
FHA cannot give or lend you money for repairs, nor can it buy the
home back from you. It cannot help you with the builder or
seller.
That's why it is so important for you,
the buyer, to get an independent home inspection. Ask a qualified
home inspector to thoroughly examine the physical condition of your
future home and give you the information you need to make a wise
decision.
When making a written offer on a home, you
should insist that the contract state that the offer is contingent
(dependent) on a home inspection conducted by a qualified
inspector. You will have to pay for the inspection yourself, but it
could keep you from buying a house that will cost you far more in
repairs down the road. If you are satisfied with the results of the
inspection, then you can proceed with your offer.
As the buyer, it is your responsibility to
carefully select a qualified inspector. The following sources may
help you find a qualified home inspector:
Your real estate agent. Most real estate
professionals have a list of home inspectors they recommend.
State regulatory authorities. Some states
require licensing of home inspectors.
Professional organizations. Professional
organizations may require home inspectors to pass tests and meet
minimum qualifications before becoming a member.
Phone book Yellow Pages. Look under
"Building Inspection Service" or "Home Inspection Service".
The Internet. Search for "Building
Inspection Service" or "Home Inspection Service."
Radon Gas testing:
Found in some homes Radon is a natural
radioactive gas. Strong concentrations of it can cause serious
health problems. The Surgeon General of the United States and the
U.S. Environmental Protection Agency, recommend that all houses
should be tested for radon. For more information on radon testing,
call the National Radon Information Line at 1-800-SOS-Radon or
1-800-767-7236. As with a home inspection, if you decide to test
for radon, you can do it before or after signing the contract, as
long as your contract states your purchase depends on your
satisfaction with the results of the radon test.
National Lead Information
Clearinghouse:
Many homes built before 1978 have lead
paint, and some ingredients can threaten your health. To protect
your family, you should be sure to get a lead-based inspection
and/or risk assessment. For more information, contact the National
Lead Information Clearinghouse at 1-800-424-LEAD or
1-800-424-5323.
The bottom line: Spending hundreds of
dollars on inspections may save thousands in the future!
The FHA Loan:
Why ask for an FHA mortgage loan? There
are many reasons to ask your lender for an FHA loan instead of a
conventional loan or an expensive, risky sub-prime loan.
Lower cost - FHA loans have competitive
interest rates because the Federal Government insures the loans.
Always compare an FHA loan with other loan types.
Smaller down payment - FHA offers a low 3%
down payment, and that money can come from a family member,
employer or charitable organization. Many other loans don't allow
this.
Easier to qualify - Because FHA insures
your mortgage, lenders are more willing to give loans with lower
qualifying requirements, so it's easier for you to qualify.
Less than perfect credit - Even if you
have had credit problems, such as bankruptcy, it's easier for you
to qualify for an FHA loan than a conventional loan because FHA
insures your mortgage.
More protection to keep your home - FHA
has been around since 1934 and will continue to be here to protect
you. Should you encounter hard times after buying your home, FHA
has many options to help keep you in your home and avoid
foreclosure.
Applying for your FHA loan:
The loan officer will help you complete a
loan application and have you sign a several forms authorizing the
lender to verify (check on) your employment, income and savings.
Using that information, your lender will order an FHA case number,
an identification number specifically for your loan
application.
The lender will also order an appraisal to
find the value of the property and its condition. An FHA appraisal
is no different than other appraisals.
The lender will also review the appraisal,
to determine if the value of the property supports the sales price
and to see if any property repairs are required. The lender then
makes a decision on your application.
Signing Closing papers:
You're finally ready to go to
"settlement" or "closing." Be sure to read everything before you
sign. In addition to signing a lot of documents, you may need to
bring some extra money for certain closing costs.
Since 1934 The Federal Housing Administration has been working
for millions of Americans to secure their dreams of owning their
own home! We want to keep those dreams alive!
Providing
mortgage insurance on loans made by FHA approved lenders throughout
the United States and also its territories. FHA insures mortgages
on single family, multifamily, and also manufactured homes. Making
them the largest government backed mortgage insurer.
FHASecure IS: A refinancing option that
gives credit-worthy homeowners, who were making timely mortgage
payments before their loans reset but are now in default, a
second chance with a FHA insured loan product.
ARE
YOU ELIGIBLE? To qualify for FHASecure, and to
include the delinquent loan payments, a homeowner wishing to
refinance must meet the following requirements:
Have a non-FHA insured ARM that has reset;
Sufficient income to make the mortgage payment;
A history of on-time mortgage payments before the loan
reset.
If you are
current on your conventional mortgage you must have sufficient
income to make the mortgage payment.
By refinancing
into a FHA insured mortgage, you can expect to pay lower monthly
mortgage payments.
FHASecure can improve the quality of life for many
homeowners by helping to reduce the number of mortgage defaults and
bringing greater stability to local housing markets.
300,000 sale price putting down 100k 10
year interest only then 20 year pay off fixed interest rate for 30
years 6.625 (no origination) payment interest only would be $1,108
30 year payment is $1,280.62
One additional advantage of the interest
only, you can make a payment ahead and due to the way that they
calculate interest you will not have the money but for 20 days
instead of 30 which does not effect your payment, but forces the
mortgage company to apply a portion of your interest only payment
to principal. I have a friend of mine that has been in the mortgage
business for multiple years who turned me onto this, he believes
his effective interest rate on a 5% loan is somewhere closer to
3.
300,000 sale price putting down 100k fixed
interest rate for 30 years 5.75% (no origination) principal and
interest only $1,167.15
Here are 5 other houses ranging in price
from 264 to 319k. They have been lived in, but believe for the
money they are very nice properties. All are in the South Shades
Crest Elementary School district.
I have represented people buying by owner
properties. I can provide information to help make a more competent
bid, make sure all inspections are ordered in a timely fashion and
hold escrow money. There are times when these services are more
than worth what ever commission that I negotiate the seller to pay,
normally 2% in this situation.
Sellers always say that you could get the
house for less if they did not have to pay the buyer’s agent,
but I have found that people typically do not sale by owner to
benefit the purchaser.
Anyway that I can be of help please feel
free to ask, it has been a pleasure getting to know you.
A clause in your mortgage which allows the
lender to demand payment of the outstanding loan balance for
various reasons. The most common reasons for accelerating a loan
are if the borrower defaults on the loan or transfers title to
another individual without informing the lender
The first step in determining the price
you are willing to offer is to look at the recent sales of similar
homes. These are called "comparable sales." Comparable sales are
recent sales of homes that compare closely to the one you are
looking to purchase. Specifically, you want to compare prices of
homes that are similar in square footage, number of bedrooms and
bathrooms, garage space, lot size, and type of construction.
If the home you are interested in is part
of a tract of homes, then you will most likely find some exact
model matches to compare against one another.
There are three main sources of
information on comparable sales, all of which are easily accessed
by a real estate agent. It is somewhat more difficult for the
general public to access this data, and in some cases impossible.
Two of the most obvious information sources are the public record
and the Multiple Listing Service.
When you prepare an offer to purchase a
home, you already know the seller's asking price. But what price
are you going to offer and how do you come up with that figure?
Determining your offer price is a
three-step process.
First, you look at recent sales of similar
properties to come up with a price range. Then, you analyze
additional data, such as the condition of the home, improvements
made to the property, current market conditions, and the
circumstances of the seller. This will help you settle on a price
you think would be fair to pay for the home. Finally, depending on
your negotiating style, you adjust your "fair" price and come up
with what you want to put in your offer.
It is absolutely essential that you
include a closing date as part of your offer. This way both you and
the seller can make plans for moving, and the seller can make plans
for buying his or her next home. Though most transactions actually
do close on the right date, do not be so inflexible that a delay
creates insurmountable problems.
For example, if you are renting and need
to give the landlord notice that you are moving out, you may want
to allow a little flexibility. Otherwise, if your purchase closes a
few days late you could find yourself staying in a motel with your
belongings packed in a moving van somewhere while you pay storage
costs.
There are also times when closing can be
delayed by weeks, through no fault of your own. Have back-up plans
prepared for such a contingency.
BloodhoundBlog: Real estate marketing and technology blog |
Realtors and real estate, mortgages, lending, investments
Buy the soda instead, then. It’s an upsell for the pizzeria
— bigger mark-up, and therefore often deferred. Your cost is
down to maybe three bucks — only on redemption — for
the most valuable real estate in the house, the front of the
fridge. That’s a smokin’ deal, and you can turn it into
a locals versus The Big Chains thing, too: We support Luigi’s
because Luigi’s supports Littleton Heights. There’s a
lot you can do with this.
Make them fill out the coupon prior to redemption, then take
them all back from Luigi — and share your database with
Luigi; he’ll love you for it. Then send two more coupons to
everyone who uses one. Better yet, hand deliver them. Sales is
getting belly-to-belly. Everything else is either prospecting or
marketing.
RealEstate.com is the place to begin your
search for real estate, whether you are looking to buy or sell a
home or property. We have the tools you need to make an informed
decision, including homes for sale listings, new homes and MLS
listings (Multiple Listing Service). You can also find real estate
resources, such as our Tips and Tools, Find a REALTOR, and Home
Values. Whether you are looking to get the best price on your first
home or buying investment properties, our real estate listings and
home valuations provide you with the best way to search for a new
house or condo. RealEstate.com is a full service real estate
broker, ready to help you buy or sell a home. Our REALTORs and real
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