There is much give and take involved in negotiating a property purchase. That's why it's important to have a checklist of what you want to get out of the deal as a buyer. Bear in mind, the home must be appraised and the lender will be looking at the fair market value on a given property. Since property values fluctuate, your Real Estate Agent should do a comparative market analysis so you are aware of what the trends are for the area in which you are shopping. This will give you an idea as to whether the seller's asking price is realistic. You will also want to know how long the property has been on the market, and if any price reductions have occurred during that time.
Make sure your Real Estate Agent is on the same page with you so he/she is able to represent you properly. You also want to know that you are working with an agent that is experienced in representing the buyer. Not all agents have the ability to provide strong representation for both a buyer and a seller. If you have not yet selected a Real Estate Agent to represent you, my team and I can provide you with contacts that have a proven track record of success with our clientele.
Remember a good deal is mutually beneficial.
The seller will also have a wish list of what they want out of the negotiation. Listen attentively to determine what their hot buttons are. You can use this information to leverage what you want out of the deal at some point along the way.
Find out if the seller has a deadline. Perhaps they have already purchased their new home, or have to relocate because of a commitment to a new employer. Find out what the seller's current mortgage balance is and use this to your advantage.
On the other hand, if the seller wants to move because they can't manage upkeep on the home, or don't want to invest in repairs, these problems will be passed on to you. If you are prepared to go into a deal that involves a fixer-upper, there is an FHA financing program designed to provide funds for both purchase and repair. My team and I can provide you with more information on FHA loan programs and secondary financing.
You would also want to know if the seller is planning this move because there are problems in the neighborhood. Take a walking tour of the area and ask the residents what the neighborhood is like. You can also ask the local police department about the crime rate, or check the local newspaper for crime listings. Don't be afraid to ask questions.
When the seller is intent on getting their way on a certain point, make sure you are getting something in return. Typically the built-in amenities such as the dishwasher and garbage disposal will stay with the home. You can negotiate other items in exchange for something that ranks high on the seller's wish list. Be prepared to split the difference so everyone involved is satisfied with the negotiation. A win-win situation for both the buyer and the seller is critical to a smooth close.
Keep it simple and be direct, but above all, know that my team and I are here to assist you.
Call me directly for a free consultation.
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Here are the 5 things you need to know about these changes... 1. One single down payment requirement of 3.5% for all purchases 2. Closing costs/prepaids are in addition to the 3.5% down (6% seller contribution allowed)
4. These changes are effective October 1st, 2008. 5. Purchases already in the pipeline will have until December 31st to be assigned a case number. After January 1st, 2009, all purchases will require the new down payment requirements. |
Since the signing of HR 3221 on July 30th, there has been much discussion of just what this bill means. Anytime we are dealing with an 800 page document written by politicians and attorneys, there is going to be confusion. Much of the language in the bill is vague and open to some degree of interpretation. Because of this, I have been looking to other mortgage industry experts and leaders for answers.
One of the most intrguing and discussed aspects of this bill is the First Time Home Buyer Tax Credit. This provision allows for First Time Home Buyers to receive a tax credit of upto $7,500 if they purchase a home from April 9, 2008 until July 1, 2009.
Below are two great resources that address Frequently Asked Questions regarding the tax credit.
http://www.federalhousingtaxcredit.com/faq.php
http://www.realtor.org/gapublic.nsf/files/hbtaxcreditqa2008.pdf/$FILE/hbtaxcreditqa2008.pdf
Both of these sources help explain just what a tax credit is and who is eligible. A couple of points of interest that I have not seen discussed previously:
1. There is no precedent and not much is known about just how the repayment of this tax credit will work.
2. If the financing is obtained by means of mortgage revenue bonds (i.e., through a tax-exempt bond-related financing program offered by a state housing agency), then the purchaser is not eligible for the tax credit.
As more information becomes available, I will be sure to share.
Mortgages are in the news again today...but this time, the news is good! Especially for people looking to buy or refinance a home, as interest rates have dropped to the lowest levels seen since April.
You've probably heard that Fannie Mae and Freddie Mac were taken over or "bailed out" by the Federal Government over the weekend. The announcement came as the government felt that both of these institutions were potentially unable to meet their obligations. These agencies must pay off maturing Bonds every month, and they do so by selling new Bonds. But during the last twelve months, investor appetite to purchase new mortgage-backed security Bonds has deteriorated. As such, it has become more difficult for Fannie and Freddie to replenish capital to fund more loans. If both Fannie and Freddie became insolvent, the housing market as well as the mortgage market would come under further pressure.
With the Treasury stepping in to provide a "backstop" for the mortgage giants, investors now have confidence to purchase Mortgage Bonds. And the greater interest has helped lower interest rates today.
Call me today, so we can discuss what the news means to you and how you can benefit.
Homeowners refinance for different reasons, but the process of refinancing a mortgage should result in some benefit to the homeowner. A borrower may choose to refinance to obtain a lower interest rate and a lower monthly payment, or change the type of loan that they have. Borrowers who started with a high-interest sub-prime loan can often reap the rewards of an improved credit standing by refinancing. Some homeowners refinance to 'cash out' and take advantage of the equity they have earned, while others may choose to refinance to shorten their loan term and build equity more quickly.
Regardless of the reason for refinancing, the mortgage consultant will need to know what the existing loan scenario entails. He/she will review the homeowner's long-term goals and provide a comprehensive spreadsheet that outlines various loan programs that will provide noteworthy benefits to the homeowner.
Bear in mind, refinancing to obtain a lower interest payment could also result in a lower deduction at tax time. The homeowner's tax consultant and mortgage consultant should work hand-in-hand with their mutual client's best interest in mind.
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I am an Accredited Loan Cosultant with Pleasant Valley Home Mortgage Corp. I understand that each individual has their own needs and goals. My job is to find and recommend the best solution for you.
As a mortgage consultant, my job is to provide my customers with what is likely to be the largest debt they will ever have in their lives. I believe that this obligates me to personally ensure they have the proper understanding and resources to effectively manage this debt. I do this by spending a portion of each and everyday using resources such as the Mortgage Market Guide and the Loan Toolbox to make sure I am at the top of my game.
My responsibility starts by evaluating each individuals needs and goals to determine the best way to structure their mortgage. From time of pre-qualification through the day of closing, my customers and realtor partners know that I will be with them every step of the way. Communication and education are the most important pieces of the puzzle. These basic ideas ensure that we will be at the closing table on time and that everyone has a smile on their face on day of settlement.
Watching my customers be handed the keys to their new home is only the first step in my journey with them. Through the use of newsletters, market updates, and annual mortgage reviews, my clients know they can count on me to be here for them should their situation or market conditions change. Whether they are in need of stepping up to a bigger home, refinancing their existing mortgage, or enrolling in a mortgage acceleration program, I will guide them through the maze of options and assist them in making the right decisions.
Pleasant Valley Home Mortgage Corp.... Our staff have been fulfilling customers' real estate financing needs for 25 years. Using today's advanced automation systems, we provide our borrowers with tools and resources to make obtaining a mortgage loan from us a fast and efficient process. Offering a wide selection of products, great rates and flexibility, we tailor mortgage solutions to meet our borrower's needs.
What We Offer:
A Simple Mortgage Process Our borrowing process is fast, simple and hassle-free. We have eliminated much of the paperwork involved in applying for a mortgage loan in the traditional manner. With Pleasant Valley Home Mortgage Corp., you can inquire about a loan through the Internet, over the telephone or by fax. If you have any questions, our dedicated loan consultants will be happy to assist you.
Fast Credit Decisions and Closings Our online mortgage approval system expedites the loan approval by accessing national underwriting guidelines and confirming the conditions required for loan approval. You no longer need to provide the excessive information and documentation that was required under the traditional application process. As a result, it is possible for a loan to close within 14 days of receipt of the completed loan application and documentation (although we can't guarantee that every loan will close that quickly).
Big Savings Our automated systems and streamlined mortgage process have created an extremely cost-efficient mortgage operation. We produce big savings for borrowers by eliminating the high-commissioned loan officer, acquiring loan sources with low rates, origination fees, points, and other charges, as well as negotiating reduced fees for escrow, title insurance, appraisal, credit reporting and other mortgage services.
Personal Service After submitting your loan application, a loan officer will personally assist you through each step of the mortgage process by helping you meet your loan approval conditions through coordinating the signing of your closing documents.
"Someday, I will personally come to say to you thanks for helping me out all along the process of mortgage approval to closing. I am very happy for the rate you offered me and the highest level of customer service you provided me and wish you great success in every walk of life. I will certainly wish to recommend any body in my circle who would be interested to get a home mortgage.
Thanks."
- Mohammad
"We hope this email finds you well.
We truly appreciate all the hard work you put into helping us get approved for our loan- and making our dream of owning our first home a dream come true. The exceptional service and advise provided by you should be commended. You can definitely count on our recommendation for your services to everyone we know!
Kind Regards,"
Yris & Antonio
"Everything was handled very well... Open communication and always available."
-Michael & Michele Hetzel
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"Karl was excellent. He was very responsive and knowledgeable."
- Cristina Vacca
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Dear Karl,
"Just a note to say a huge THANK YOU for your help in securing my new townhome. I move in tomorrow and want you to know how much I appreciate your help in getting me to this point.
Thank you for guiding me through this process in such great detail. You were careful to explain everything to me in "layman's" terms to make sure I understood, and thanks to your careful eye on what was happening with the economy I was able to get that monetary break from FHA! I always felt that you were working in my best interest, and cared that you were doing the best job possible to meet my needs.
I could not have had a more positive experience, and within the next few days I will report my experience online via my subscription to Checkbook.org which is used heavily in our area for referrals. I am very glad I came to the ACC the day Superior was here!
As I mentioned to you, I always noticed the tag line in your emails that said if I felt I was not receiving five star service to contact Mr. Cors. Well I am pleased to report to Mr. Cors that the service I received from your office exceeded my expectations.
It was a pleasure doing business with you.
Kind regards,"
Lauri Nichols
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"As a first-time home-buyer I was a little uneducated on certian terms & principles, but Karl did an excellent job of making a very stressful situation more bearable to handle. An asset to the company."
Erin Sweeney
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"We appreciated his knowledge in the program that was able to get us into our 1st home. We appreciated his constant in contact attitude. Thank you!!!"
Cristina Trejos
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"Karl was wonderful. He was always one step ahead. He made himself completely accessible. He was extremely knowledgable. Well spoken & very thoughtful."
Michelle Dougherty
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"Karl's customer service is exceptional!! Very attentive and knowledgable. Also, Anton & Lillie are especially helpful, knowledgable, pleasant & efficient.
A great team!
Thank you"
James and Lucinda Reilley
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"He was always prompt to respond and was on top of everything. It was a stressfree experience, as much as getting a mortgage can be."
Erik & Susanne Spence
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"It was a pleasure working with Karl. He did everything in a timely manner for my clients and they were very pleased with his services. I was quite happy with all the updates and informative emails that I recieved from him. I was especially surprised to see him at closing. He made my job so much easier! Thank you Karl!"
Cindy Cori (Cardinal Real Estate Services)
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