Paula Christo

Choosing A Lender

Yes, there really is a mortgage crisis Virginia. BUT loans are still being written every day for buyers with good credit and buyers willing to put some money down. So how does one go about finding a good lender? It always amazes me that buyers and sellers put their realtor under a microscope before choosing them - but then they do little or no shopping for a lender. A good lender can save you just as much money as a good agent. Here are some suggestions to keep in mind when choosing a lender:

1. Ask the realtor you put under the microscope for a suggestion. You probably only buy a new home every 5-7 years. Your realtor works with lenders year round. If you have a good professional agent, he/she probably knows a good professional lender.
2. Do NOT be misled by advertising. If the interest rate is too good to be true - it is probably not true.
3. Get the names of three lenders and then call them with a few questions. See who you think you would like to work with based upon your phone interview. Questions might include: What kind of loans do you work with ? (ie VA,FHA, Conventional, stated income, jumbo, etc) What will you do to insure the loan is funded in time for my closing? How often do you communicate with your clients and their realtors during the loan process? Last but not least - what is the current interest rate? (Please note: The lender can probably not give you an exact quote. YOUR interest rate will probably depend on what type of loan you want, your credit rating, the amount you are borrowing, etc)
4. PLEASE REMEMBER: Do NOT have any lender pull your credit until you are sure you want to work with them. Too many credit checks actually can lower your credit score.

Please note that having a lender that does not follow through can quickly become a nightmare for everyone. It has been said that 80 people are involved in every real estate deal. That would include the buyers, sellers, movers, utility companies, lenders, closers, realtors, title companies, etc. (That does not even count the people involved in the transaction on the other end that the buyer or seller is trying to make happen.) When an appraisal is not done on time, salaries are not verified on time, or documents are not sent to the title company on time there is a big headache for everyone - especially you. Choose your lender wisely!

Whatcha Waiting For?
Last week I blogged about selling in a cooled down market. This week I would like to blog about BUYING in a cooled down market. "Go for it"......... now, Forrest Gump would say "That's all I have to say about that."

OK - so some of you may need a little more information as to why it is a good time to buy. Let me explain. Timing is important. Let's think about the advantages of buying a home in San Antonio today.

1. Supply and demand makes for better prices. Homes that have languished on the market for a while make for some anxious sellers. IF you can find one of these homes, they will be more willing to negotiate. New homes builders in San Antonio are offering terrific incentives to bring down their inventory. That means pre-owned homes have to compete. Either way - you win!
2. Sellers will be more willing to negotiate. Look for highly motivated sellers. If a seller needs to be in Toledo for a new job, and you are the first offer he/she has had in a few months - then perhaps he/she is willing to help with closing costs or lower the price or leave the stainless steel refrigerator you want. Builders may throw in seller financing, free upgrades, or a vacation in Tahiti just to reduce their inventory of speculative ‘spec' homes.
3. You are not rushed to buy. In the summer of 2006 I drove buyers frantically all over San Antonio when a new listing came up on the MLS. The good ones were gone - and fast! Now they can take more time searching and comparing. There is not the pressure to rush into a decision.
4. There are more homes to choose from. Homes are moving slower so there are more out there to look at.
5. Homes are in better shape. Since sellers know that competition is fierce, they are presenting their homes in a good condition before they hit the market.
6. Moving UP will definitely save you dollars. If you are in a 200K home and you have to come down 4% to make it sell then you ‘lost' $8K. However when you get ready to buy a 375K home and the sellers have to come down 4% to make it work, then you ‘gain' 15K. The net is 7K. In other words, you get a proportionately larger discount on the bigger place they purchase.
7. Last but not least - interest rates are great!

Hope this helps and "That is all I have to say about that."

How do you sell a house once the market cools off?

We all know the national housing market has slowed tremendously. The San Antonio market is still healthy, but properties are not flying off the shelf like they were a year or two ago. Here are some ideas about what you can do as a seller to get your house sold:

1. It is not JUST about price. Of course - price is very important - but there are a few other things to consider
2. Maximum Exposure - Be sure your listing agent is using a variety of avenues to get your home exposed to as many people as possible. That being said - the marketing needs to be directed at the right people, also. I once helped a fellow agent brainstorm to get a property sold that had been on the market a long time. The house was in bad shape, but it was in the heart of San Antonio and had a horse stable. I suggested that she emphasize the lot and the horse stables, etc. It worked!
3. Advertising - needs to have a bold headline, arouse curiosity, and paint a picture of the home and its specific features and uniqueness. Perhaps I should start a contest of the worst photos currently on the San Antonio mls. I ran across a few just this week when looking at properties for prospective buyers. I wanted to put them on this blog, but the SA Board of Realtors said they were copyrighted. So let me explain- if it is dark, blurry or you can't tell what room it is - don't use that photo. And also - it both lids of a porcelain object are up - yuck!
4. Monitor the local market - know how many months of inventory are available. For example if there is an 6 month inventory of homes on the market, the probability that a seller will sell in any given month is 20%. The probability that the seller won't sell is 80%. That means sellers in that market that want their home under contract need to place their home where it is in the best 20% currently on the market.
5. Monitor your listing - track how many visitors or hits that you are receiving from various web sites where the listing appears. If the number has declined from the initial listing period and you still have no offers - it is time for a price reduction. The same is true if the number of showings have dwindled.
6. Staging - staging, staging. It used to be location, location , location. Now I can tell you after showing hundreds of homes last year that the impression a home gives a potential buyer when they walk in is numero uno. Expectations of buyers are higher than ever. A home must appeal to a wide spectrum of buyers. A swinging bachelor pad with little or no furniture does not appeal to many buyers. An ultra feminine home with bright walls, flowers and lace on everything will only appeal to a small segment of buyers - as will a home decorated in early Fisher Price. Spend a few hundred bucks and get a professional to stage your home - you will be amazed at how good your own house looks - and be rewarded with offers quickly!