Deanna Valeo
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What are Your Options - as a Buyer - During the Options Period? September 10, 2013

An Option Period is a specific amount of time, agreed upon between the buyer and seller, that allows the buyer time to perform their due diligence and conduct further investigations into the property. This period is commonly TEN days butit  can be extended by mutual agreement between the buyer and seller. This time allows for the buyer to conduct a thorough home inspection and get quotes for any repairs that may have been found.

Once an inspection is complete, you may be at the mercy of your real estate agent's expertise to help you determine the severity of any repairs and what action you should take. Once you have determined what repairs you need, an amendment is sent over to the seller's agent informing them of which repairs you hope will be made by the sellers. From here, by way of the agents, you can negotiate the amendments updated terms and come to a conclusion. The option period allows the buyer an unrestricted right to terminate the proposed contract if you are unable to reach an agreement with the sellers, following the inspection.

It is common for buyers to feel worried, concerned and rushed during this period as the home inspection is out of their hands and the negotiations can be difficult. More importantly the options period PREVENTS the seller from selling the house to anyone else during this time. Though the seller is permitted to negotiate and accept back-up offers, they are still contractually bound to sell the property to you, until the contract and its amendments are terminated.

The options period is important for buyers, as they should do their due diligence so that there are no surprises when they finally purchase the home. Take the time to work with your realtors to find a licensed home inspector and to understand what moves to make when reconnecting with the sellers.

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Home Buying Essentials September 19, 2013

Making an Offer & Negotiating

Some people believe that everything is negotiable and when it comes to buying or selling a home its true. From the price, to the terms, to the occupancy date, you can always ask for what you want. The truth is, you may not always get it, but it's always in your best interest to ask! As a buyer, your purchase offer can be considered a "blueprint for the final sale." It contains all of the items that will serve as a guide to the final agreement. When it comes to making an offer on a home and negotiating the best deal, take the time to do your research and make sure you have an experienced Realtor to assist your decision making.

Signing the Contract & Depositing Earnest Money

If you reach an agreement you will make a good-faith deposit and the process then transitions into escrow, which is a short period of time where the seller takes the house off the market with the contractual expectation that you will buy the house provided you don't find any serious problems with it during inspection.

Options Period

An Option Period is a specific amount of time, agreed upon between the buyer and seller, that allows the buyer time to perform their due diligence and conduct further investigations into the property. This period is commonly 10 days but can be extended by mutual agreement between the buyer and seller. This time allows for the buyer to conduct a proper home inspection and get quoted for any repairs that may have been found. The options period is important for buyers as they should do their due diligence so that there are no surprises when they finally purchase the home.

Your Home Inspection

Once you have made an offer on a home and are in your options period, it is time to get moving on the home inspection. Speak to your realtor and see if there is an inspector that they use often and trust, if not do your own research to find the best licensed home inspector you can to look over the house with a magnifying glass.
Even though sellers should disclose all known defects of the property, a full, professional, home inspection should be completed. A home inspection is a thorough visual exam of the home and property.  It removes any questions about the condition of your home for you and a potential homebuyer, improving the speed, price and likelihood of a sale. Talk to your agent, family, and friends to understand and discuss your concerns, types of defects, and what is most important to you.

The Property Appraisal

A home appraisal is used to help lenders, buyers, and sellers come to an understanding of how much a home is worth, or its market value. Appraisers visually inspect the home and compare it to similar homes in the area. Throughout the appraisal they will research the neighbor crime rate, quality of schools, access to highways, public areas, etc., and take note of all features and issues throughout the home.
Don't feel great regret after getting an appraisal that's too low, instead do more to plan and prepare beforehand. Here are some things that appraisers agree are very important for keeping the look, feel, and condition of the property as updated as possible. There are many factors that can significantly affect the value of your home so it is important to research your neighborhood and the best ways to boost your homes value with minimal cost and moderate effort.

Original Article here
 


Interest Rates going up? Really? September 23, 2013

Just a couple of weeks after home mortgage loan interest rates reached a two-year high of 4.58% on August 22nd, the average U.S. mortgage loan interest rate on fixed mortgages declined this week amid signs of a slowing economic recovery. This past Thursday, (September 19th) mortgage buyer Freddie Mac, stated that the average rate on the 30-year loan fell to 4.50% from 4.57% last week, while the average on the 15-year fixed mortgage dipped to 3.54% from 3.59%.

Long-term mortgage interest rates have risen more than a full percentage point since May, when Federal Reserve Chairman Ben Bernanke first signaled that the Central Bank could begin reducing its monthly $85 billion in bond purchases this year if the economy looked strong enough.

These purchases are intended to keep long-term mortgage loan rates very low to encourage borrowing and lending. However, since the Federal Reserve recently announced it would continue it's current pace of the bond-buying program, long-term mortgage rates moved a little lower this week and may continue in the downward direction in the weeks ahead.

Even with the highest mortgage loan interest rates in a two-year time period, existing home sales reached their highest point in August in more than six months. Though interest rates seem to be slowly inching downward, this current home sales trend is not fully expected to continue. Many residential areas are experiencing limited choices due to tight inventory, affordability is still not as favorable as it once was, and in some areas restrictive mortgage lending standards are keeping some otherwise qualified buyers from completing their purchases.

With interest rates dipping down, now is the time to consider all of your options. Whether you are buying a new home or looking to refinance your current home, you can trust Fairway Independent Mortgage of the Carolinas to make your home loan as stress-free as possible. Email me today to get started or simply fill out our online application to get started.

Original Article Here


Guidelines to getting your Loan approved September 26, 2013

Whether you're a first-time homebuyer or seasoned investor, the mortgage approval process can be an overwhelming adventure without a proper road map and a good team in your corner. To some potential buyers the prospect of meeting a mortgage lender may seem a little scary. Lenders ask a lot of questions because they want to help you get the best mortgage they can for you and your family.Mortgage lenders approve borrowers for a loan, which is secured by real estate, based on a standard set of guidelines that are generally determined by the type of loan program. Your loan representative will instruct you to provide the required supporting documents. The following bullets are the main components of a mortgage approval:

  • Credit Lenders use credit scores and history as a tool to determine the estimated risk associated with a borrower.
  • Loan-to-Value (LTV) Loan-to-Value, or LTV, is a term lenders use when comparing the difference between the outstanding loan amount and a property's value.
  • Debt-To-Income (DTI) Ratio A borrower's DTI Ratio is a measurement of their income to monthly credit and housing liabilities. The lower the DTI ratio a borrower has (more income in relation to monthly credit payments), the more confident the lender is about getting paid on time in the future based on the loan terms.
  • Employment history- Job stability is a factor that a mortgage lender will look for,
  • Appraised value of the house- The lender wants to make sure that the value of your home would support the amount of your mortgage.
The loan representative will then submit your loan application, along with the documents, to the underwriter. Today an automated underwriting system is becoming more and more popular, enabling lenders to obtain a risk classification without traditional manual underwriting. Though many believe that automated underwriting saves borrowers time and money, Fairway Independent Mortgage of the Carolinas has in-house underwriting providing us with increased control over the mortgage process ensuring superior customer service.

Soon thereafter, the underwriter will return one of four possible decisions about your application: approval, approved with conditions, suspended (more documentation required before a decision can be rendered), or denied.
If you have been approved, with or without conditions, one more critical task is to lock in your interest rate and loan terms. With a rate lock, lenders are obligated (with a few exceptions) to offer a home loan at an agreed-upon rate regardless of whether mortgage rates have changed between the time of the loan approval and the closing date.

From there, you are cleared to make an offer on a house with full confidence that you will be able to close the deal. Nevertheless, it's still up to you to do everything you can in order to ensure that your closing goes smoothly.
With interest rates dipping down, now is the time to consider all of your options. Whether you are buying a new home or looking to refinance your current home, you can trust Fairway Independent Mortgage of the Carolinas to make your home loan as stress-free as possible. Email me today to get started.

Original Article Here